Document:

First Preferred Fleet Mortgage

 Exhibit 10.28.6 
  
 EXECUTION COPY 
  
 FIRST PREFERRED FLEET MORTGAGE 
  
 DATED AS OF 
 December 1, 2004 
  
 MADE BY 
  
 TRAILER BRIDGE, INC. 
  

			
	Mortgagor:	  	Trailer Bridge, Inc.
		
	Mortgagor’s Address:	  	10405 New Berlin Road East
	 	  	Jacksonville, Florida 32226
		
	Mortgagor’s Interest:	  	100%
		
	Mortgagee:	  	Wells Fargo Bank, National Association, as Trustee
		
	Mortgagee’s Address:	  	Wells Fargo Bank, National Association
	 	  	213 Court Street
	 	  	Suite 703
	 	  	Middleton, Connecticut 06457
	 	  	Attention: Trailer Bridge Administrator
		
	Mortgagee’s Interest:	  	100%
		
	Amount of Mortgage:	  	$85,000,000.00

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE I REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE MORTGAGOR
	  	3
	 Section 1.01
	  	Payment and Performance of Note Obligations	  	3
	 Section 1.02
	  	Citizenship	  	3
	 Section 1.03
	  	Ownership of Vessels, Warranty and Defense of Title	  	3
	 Section 1.04
	  	Compliance with Laws	  	3
	 Section 1.05
	  	Operation of Vessels	  	4
	 Section 1.06
	  	Claims, Taxes, Fees, Etc.	  	4
	 Section 1.07
	  	Liens	  	4
	 Section 1.08
	  	Notice of Mortgage	  	5
	 Section 1.09
	  	Removal of Liens	  	5
	 Section 1.10
	  	Libel or Attachment	  	5
	 Section 1.11
	  	Maintenance of Barges	  	5
	 Section 1.12
	  	Changes in Barges	  	6
	 Section 1.13
	  	Inspection	  	6
	 Section 1.14
	  	Change of Flag or Documentation	  	6
	 Section 1.15
	  	Charter of Vessels	  	7
	 Section 1.16
	  	Requisition of Title or Use	  	7
	 Section 1.17
	  	Notice of Loss, Requisition or Damage	  	7
	 Section 1.18
	  	Insurance	  	7
	 Section 1.19
	  	Reimbursement of Mortgagee	  	10
	 Section 1.20
	  	Reports	  	11
		
	 ARTICLE II MORTGAGE EVENT OF DEFAULTS
	  	11
	 Section 2.01
	  	Mortgage Event of Defaults	  	11
		
	 ARTICLE III REMEDIES; APPLICATION OF PROCEEDS
	  	11
	 Section 3.01
	  	Sale, etc	  	11
	 Section 3.02
	  	Finality of Sale	  	12
	 Section 3.03
	  	Powers and Rights of Mortgagee upon Occurrence of a Mortgage Event of Default	  	13
	 Section 3.04
	  	Application of Proceeds	  	14
	 Section 3.05
	  	No Obligation	  	14
		
	 ARTICLE IV GENERAL POWERS OF MORTGAGEE
	  	14
		
	 ARTICLE V INDEMNITY
	  	15
	 Section 5.01
	  	Limitation on Duty of Mortgagee in Respect of Vessels	  	15
	 Section 5.02
	  	Incorporation by Reference; Indemnity and Expenses	  	16
		
	 ARTICLE VI SUNDRY PROVISIONS
	  	16
	 Section 6.01
	  	Cumulative Remedies; No Waiver	  	16
	 Section 6.02
	  	Further Assurances	  	17

  

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	 Section 6.03
	  	No Waiver of Preferred Status	  	17
	 Section 6.04
	  	Survival of Agreements	  	17
	 Section 6.05
	  	Notices	  	17
	 Section 6.06
	  	Counterparts; Amendments	  	17
	 Section 6.07
	  	Nature of Agreements Hereunder	  	17
	 Section 6.08
	  	Recording	  	17
	 Section 6.09
	  	Construction	  	18
	 Section 6.10
	  	Governing Law	  	18
	 Section 6.11
	  	Resignation or Removal of Trustee	  	18

  

			
	ANNEXES:
		
	I	  	Indenture
	
	SCHEDULE:
		
	I	  	Vessels

  

 ii 

 THIS FIRST PREFERRED FLEET MORTGAGE, dated as of the first day of December, 2004 (as the same may
hereinafter be amended, supplemented or otherwise modified, the “Mortgage”), is made and given by TRAILER BRIDGE, INC., a Delaware corporation with its principal place of business at 157 East 57th Street, 19th
Floor, New York, New York 10022 (“Mortgagor”), to Wells Fargo Bank, National Association, a national banking association, in its capacity as Trustee under the Indenture referred to below, with an office at 213 Court Street, Suite
703, Middleton, Connecticut 06457 (acting in such capacity, the “Trustee” or the “Mortgagee”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Mortgagor is the sole owner of the whole of the vessels set forth on Schedule I attached hereto and made a part hereof (hereinafter called
the “Vessels”), duly documented in the name of the Mortgagor under the laws of the United States with the appropriate office of the United States Coast Guard at the National Vessel Documentation Center in Falling Waters, West
Virginia (“NVDC”); 
  
 WHEREAS, the Mortgagor, as
issuer, and the Mortgagee, as the Trustee for the benefit of the holders of the Notes, are parties to that certain Indenture dated as of December 1, 2004, a copy of which is annexed hereto as Annex I and made a part hereof (said Indenture, as the
same may be amended, supplemented or otherwise modified from time to time, being herein called the “Indenture”), pursuant to which the Mortgagor will issue notes in an aggregate principal sum of $85,000,000 (Eighty-Five Million
United States Dollars) (the “Notes”); and 
  
 WHEREAS, the Mortgagor has agreed to execute and deliver to the Mortgagee on behalf of the holders of the Notes this Mortgage in order to secure the payment in full of the Notes and other Note Obligations (as defined in the Indenture), and
the total amount of the Mortgage is as set forth in Section 6.08 hereof; 
  
 NOW, THEREFORE, in consideration of the foregoing premises and of other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and in order to secure the payment and performance of
(i) all Note Obligations, and all undertakings and liabilities of Mortgagor, now existing or hereafter incurred, under, arising out of, or in connection with the Indenture, the Notes and the Security Documents (collectively, the “Note
Documents”); (ii) the unpaid principal amount of, and accrued interest on, the Notes (iii) all Note Obligations, undertakings and liabilities of Mortgagor now existing or hereafter incurred, under, arising out of or in connection with this
Mortgage; and (iv) any and all other present and future indebtedness, obligations, undertakings and liabilities of any kind whatsoever of Mortgagor to Mortgagee, direct or indirect, joint or several, absolute or contingent, liquidated or
unliquidated, secured or unsecured, matured or unmatured and whether originally contracted with Mortgagee or otherwise acquired by Mortgagee or from time to time reduced and thereafter increased, the Mortgagor has granted, conveyed, mortgaged,
pledged, assigned, transferred, set over and confirmed and by these presents does grant, convey, mortgage, pledge, assign, transfer, set over and confirm unto the Mortgagee, its successors and assigns, the whole of the Vessels, together with all of
the boilers, engines, 

  

 1 

 
generators, air compressors, cranes, machinery, masts, spars, rigging, boats, anchors, cables, chains, tackle, tools, pumps and pumping equipment, apparel,
furniture, fittings and equipment, spare parts, and all other appurtenances thereunto appertaining or belonging, whether now owned or hereafter acquired, whether on board or not, and all additions, improvements, renewals and replacements hereafter
made in or to any of the Vessels, or any part thereof, or in or to said appurtenances, all of which property shall be deemed to be included in the terms “Vessel” and “Vessels” as used in this Mortgage; 
  
 TO HAVE AND TO HOLD all and singular the above mortgaged and described
property unto the Mortgagee, its successors and assigns forever upon the terms herein set forth; 
  
 PROVIDED, HOWEVER, and these presents are on the condition that, if the Mortgagor, its successors or assigns shall pay and perform each and every one of
the Note Obligations in accordance with the terms of the Note Documents and any other instrument evidencing any Note Obligation, then these presents and the estate and rights hereunder shall cease, terminate and be void, otherwise to be and remain
in full force and effect. 
  
 NOTWITHSTANDING anything to the
contrary contained herein, the term “Vessel” and “Vessels” as used herein shall not be deemed to include the Excluded Accounts Receivable (as such term is hereinafter defined). As used herein, the term “Excluded Accounts
Receivable” means all present and future rights of Mortgagor to payment of a monetary obligation, whether or not earned by performance, which is not evidenced by chattel paper or an instrument, (a) for Inventory (as such term is hereinafter
defined) that has been or is to be sold, leased, licensed, assigned or otherwise disposed of, (b) for services rendered or to be rendered (including services arising from Mortgagor’s operation or use of any Vessel or other Equipment, as such
term is hereinafter defined, included in the definition of the terms “Vessel” or “Vessels” set forth above but excluding amounts due from a third party in respect of the operation or use by a third party of any such Vessel or
Equipment pursuant to the lease, charter or other disposition of such Vessel or Equipment), (c) for a secondary obligation relating to Excluded Accounts Receivable incurred or to be incurred, or (d) arising out of the use of a credit card or charge
card or information contained on or for use with the card with respect to the payment of amounts constituting Excluded Accounts Receivable. As used herein (x) the term “Inventory” means all of Mortgagor’s now owned or hereafter
existing acquired goods, wherever located, which (i) are leased by Mortgagor as lessor, (ii) are held by Mortgagor for sale or lease or to be furnished under a contract of service, (iii) are furnished by Mortgagor under a contract of service, or
(iv) consist of raw materials, work in progress, finished goods or materials used or consumed in a business, provided that the term “Inventory’ shall not include Equipment, and (y) the term “Equipment” means all of
Mortgagor’s now owned and hereafter acquired equipment, wherever located, including containers, chassis’, tractors, vehicle transportation modules, machinery, data processing and computer equipment (whether owned or licensed and including
embedded software), vehicles, tools, furniture, fixtures, all attachments, accessions and property now or hereafter affixed thereto or used in connection therewith, and substitutions and replacements thereof, wherever located. 
  

 2 

 Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them
in the Indenture. 
  
 ARTICLE I 
 REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE 
 MORTGAGOR 
  
 In order to induce the Mortgagee and
the holders of the Notes to enter into the Indenture and to induce the holders of the Notes to purchase their Notes thereunder, the Mortgagor represents and warrants to the Mortgagee for the benefit of, and to, the holders of the Notes and covenants
with the Mortgagee for the benefit of, and with, the holders of the Notes that: 
  
 Section 1.01 Payment and Performance of Note Obligations. The Mortgagor will pay, observe, perform and comply with each and every one of the covenants, terms and conditions herein expressed or implied
(including, without limitation, the Note Obligations), on its part to be observed, performed, or satisfied. 
  
 Section 1.02 Citizenship. The Mortgagor is a citizen of the United States as defined in section 2 of the Shipping Act, 1916, as amended, duly
qualified to engage in the coastwise trade and in foreign commerce of the United States, and shall remain such a citizen during the life of this Mortgage. 
  
 Section 1.03 Ownership of Vessels, Warranty and Defense of Title. The Mortgagor lawfully owns and is lawfully possessed of the Vessels free from
any Lien whatsoever other than the lien of this Mortgage and Permitted Collateral Liens and the Mortgagor will warrant and defend the title to, and possession of the Vessels and every part thereof for the benefit of the Mortgagee for the benefit of
the holders of the Notes against the claims and demands of all Persons whomsoever. 
  
 Section 1.04 Compliance with Laws. 
  
 (a) Documentation. The Mortgagor will comply with and satisfy all provisions of the laws and regulations of the United States now or hereafter from time to time in effect in order that the Vessels shall
continue to be documented vessels pursuant to the laws of the United States as vessels of the United States under the United States flag with such endorsements as shall qualify the Vessels for participation in the coastwise trade and such other
trades and services to which they may be dedicated from time to time. 
  
 (b) U.S. Code, Tit. 46, Ch. 313. The Mortgagor will, at its sole expense and at no cost to the Mortgagee, comply with and satisfy all the provisions of the U.S. Code, Tit. 46, Ch. 313, as amended, in order to
establish, record and maintain this Mortgage as a First Preferred Fleet Mortgage thereunder upon the Vessels, and will do all such other acts and execute all such instruments, deeds, conveyances, mortgages and assurances as the Mortgagee shall
reasonably require in order to subject the Vessels to the lien of this Mortgage as aforesaid. 
  

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 (c) Laws, Treaties and Conventions. The Vessels shall, and the Mortgagor covenants
that they will, at all times comply with all applicable laws, treaties and conventions and rules and regulations issued thereunder, and shall have on board as and when required thereby valid certificates showing compliance therewith. 
  
 Section 1.05 Operation of Vessels. The Mortgagor will not cause or
permit any Vessel to be operated in any manner contrary to applicable law or regulation, or in any manner not permitted by the Indenture or by any insurances required thereby and hereby, will not engage in any unlawful trade, violate any law or
carry any cargo that will expose any Vessel to penalty, forfeiture or capture and will not do, or suffer or permit to be done, anything which can or may injuriously affect the documentation of such Vessel under the laws and regulations of the United
States of America. Mortgagor shall keep the operation of any Vessel within the permitted navigational limits set forth in the trading warranties of the policies of insurance covering the Vessels and in any case will not operate the Vessels, or
permit any Vessel to be operated, in any area where such insurance would not be fully applicable and enforceable with respect to such Vessel and its operation. 
  

Section 1.06 Claims, Taxes, Fees, Etc. The Mortgagor will pay and discharge or cause to be paid and discharged when due and payable from time to
time, all claims against, and fees, taxes, assessments, governmental charges, fines and penalties (collectively “claims”) imposed on the Vessels, their cargoes or any income therefrom; provided, however, that Mortgagor shall have
the right to contest any such claims by appropriate proceedings timely commenced and diligently prosecuted; provided, further, that Mortgagor first provides adequate replacement security to cause the release of any Vessel responsible for such
contested claims and provided that such contest otherwise poses no risk to the Collateral or Mortgagee’s position in it. 
  
 Section 1.07 Liens. Neither the Mortgagor, any shipper or charterer, the master of any Vessel nor any other person who has or shall have any right,
power or authority to create, incur or permit to be placed or imposed or continued upon such Vessel, its freights, profits or hires, shall create, incur or permit to be placed or imposed or continued upon such Vessel any lien, security interest,
encumbrance or charge whatsoever other than Permitted Collateral Liens. As to the Barges (as such term is defined on Schedule I hereto, herein referred to collectively as the “Barges”), Mortgagor agrees to hold a certified copy of
this Mortgage in safekeeping and with each Barge’s papers on board each Barge, in the case of each self-propelled Barge, and in the principal office of Mortgagor for each non-self propelled Barge, on demand to exhibit the same to any person
having business with the Barge, or to any representative of Mortgagee. As to each Barge, Mortgagor shall also place and cause to be displayed in a prominent place and in a durable manner a notice 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, reading as follows: 
  
 “NOTICE OF FIRST PREFERRED FLEET MORTGAGE AND OWNERSHIP” 
  
 “This Vessel is owned by TRAILER BRIDGE, INC. and is covered by a first preferred fleet mortgage in favor of Wells Fargo Bank, National Association,
as Trustee 

  

 4 

 
and Mortgagee on behalf of the holders of the Notes, under Chapter 313 of Title 46 of the United States Code. Under the terms of said first preferred fleet
mortgage, neither Owner, any charterer nor any subcharterer nor the master of this Vessel nor any other person has the right, power or authority to create, incur or permit to be placed or imposed upon this Vessel, or upon title thereto or any
interest therein any lien whatsoever other than liens for current wages of the crew (including the master) of this Vessel, or for general average or salvage.” 
  
 Such notice shall be amended at the sole cost and expense of Mortgagor, upon request of Mortgagee, to reflect the identity
of any successor Mortgagee. 
  
 Section 1.08 Notice of
Mortgage. The Mortgagor shall exhibit and shall require that any other person having custody or control of each Barge exhibit a copy of this Mortgage to any person having business with each Barge which might give rise to a maritime lien upon any
Barge or otherwise be deemed a sale, conveyance, mortgage or lease thereof and, on demand, to any representative of the Mortgagee. 
  
 Section 1.09 Removal of Liens. The Mortgagor will not suffer to be continued any lien (other than Permitted Collateral Liens), encumbrance or
charge on any Vessel other than this Mortgage, and in due course and in any event within thirty (30) days after the same shall become due and payable, will pay or cause to be discharged or make adequate provisions for the satisfaction or discharge
of all claims or demands secured by any lien, charge or encumbrance on each Vessel and will cause such Vessel to be released or discharged from any such lien, encumbrance or charge thereon, without prejudice to Mortgagor’s right to contest any
claims under Section 1.06 hereof following the release or discharge of such lien. 
  
 Section 1.10 Libel or Attachment. If a libel is filed against any Vessel or if it shall be arrested, attached, levied upon or taken into custody by virtue of any proceeding in any court or tribunal or by any
government or other authority, the Mortgagor shall promptly notify the Mortgagee thereof by telecopier, confirmed by overnight letter addressed to the Mortgagee and delivered to Mortgagee by an internationally recognized courier service, and within
three (3) days after any such libel, levy, attachment or taking into custody will cause such Vessel to be released and will promptly notify the Mortgagee of such release in the manner aforesaid. 
  
 Section 1.11 Maintenance of Barges. The Mortgagor will at all times
and without cost or expense to the Mortgagee cause to be maintained and preserved the Barges in good running order and repair, so that the Barges shall be tight, staunch, strong and well and sufficiently tackled, appareled, furnished, equipped and
in every respect seaworthy and in good order and operating condition, ordinary wear and tear excepted. The Mortgagor will comply with and cause the Barges to comply with all applicable United States Coast Guard Regulations. Mortgagor shall cause the
Barges to be drydocked, cleaned and painted whenever required by good commercial marine maintenance practice and the requirements of any insurance policy or entries respecting the Barges. All maintenance and repairs will be made in a good and
workmanlike manner by persons of appropriate skill and experience whose work will not adversely 

  

 5 

 
affect the service life or marketability of any Barge. All repairs, parts, mechanisms, devices, replacements, improvements, changes, additions and
alterations to any Barge shall immediately and without further act, become part of such Barge and subject to this Mortgage. Mortgagor shall promptly furnish to the Mortgagee copies of each damage survey with respect to damage to any Barge where the
survey does not specifically quantify the cost of total damages or where the survey states total damage in excess of $100,000.00. 
  
 Section 1.12 Changes in Barges. The Mortgagor will not make, or permit to be made, any change in the structure or type of any Barge or in its rig
the could reasonably be expected to materially diminish the market value of the Barge or that could materially and adversely affect the rights of the Mortgagee under this Mortgage. 
  
 Section 1.13 Inspection. The Mortgagor at all times shall afford the Mortgagee or its authorized representatives full
and complete access to the Vessels for the purpose of inspecting or surveying the same and its papers and, at the request of the Mortgagee, the Mortgagor shall deliver for inspection copies of any and all contracts and documents relating to the
Vessels, whether on board or not and shall cause any charterer to comply herewith during the term of any charter to the maximum extent permitted thereunder; provided that, absent the continuation of an Event of Default, Mortgagee shall organize such
inspections where reasonably possible so as not to interfere with the Vessels’ normal operations. 
  
 Section 1.14 Change of Flag or Documentation. So long as no Default then exists or is continuing, the Mortgagor may change the flag or
documentation of any Vessel in accordance with the procedures set forth in this Section 1.14, provided that the Mortgagor may change the flag of or re-document any of the Vessels only in the following jurisdictions: The Republic of Panama, The
Republic of the Marshall Islands, The Commonwealth of Dominica, St. Vincent and the Grenadines, and the United Kingdom. Not later than sixty (60) days before the date of such proposed flag change or re-documentation, the Mortgagor shall provide
written notice thereof to the Mortgagee. Such notice shall (i) describe the proposed flag change or re-documentation; and (ii) state that such flag change or re-documentation will not interfere with the Mortgagee’s ability to realize the value
of the relevant Vessel(s) and will not impair the maintenance and operation of such Vessel(s). Contemporaneously with the delivery of such written notice, the Mortgagor shall deliver to the Mortgagee (a) an Officer’s Certificate stating that
(i) such change of flag or re-documentation complies with the terms and conditions of the Indenture and this Mortgage, including, without limitation, the provisions of this Section 4.14; (ii) there is no Default in existence or continuing on the
date thereof; (iii) such change of flag or re-documentation will not result in a Default or an Event of Default; and (iv) all conditions precedent in the Indenture and this Mortgage relating to such change of flag or re-documentation have been
complied with; (b) all documentation required by the TIA (including, without limitation, Section 314(d) of the TIA) prior to the proposed change of flag or re-documentation; (c) an Opinion of Counsel in the jurisdiction in which the Vessel(s) is to
be re-flagged or re-documented, which Opinion of Counsel shall be acceptable in form and substance to the Mortgagee and shall state, among other things, that upon the taking of steps therein described (including, without 

  

 6 

 
limitation, the filing of any ship mortgages, fleet mortgages or amendments thereto), the Mortgagee will have a valid Lien on the re-flagged or re-documented
Vessel(s); and (d) all documentation (including, without limitation, any ship mortgages, fleet mortgages, or amendments thereto) necessary or reasonably requested by the Mortgagee to grant to the Mortgagee a perfected first priority Lien (subject
only to Permitted Collateral Liens) on the re-flagged or re-documented Vessel(s). The Mortgagor shall then promptly take the actions described in the immediately preceding clauses (c) and (d). 
  
 Section 1.15 Charter of Vessels. The Mortgagor will not charter any
Vessel to, or permit any Vessel to serve under any contract of affreightment with, a person included within the definition of “designated foreign country” or a “national” of a “designated foreign country” in the
“Foreign Assets Control Regulations” or “Cuban Assets Control Regulations” of the United States Treasury Department, 31 C.F.R. Chapter V, as amended, within the meaning of said regulations or of any regulation, interpretation or
ruling issued thereunder. 
  
 Section 1.16 Requisition of Title
or Use. In the event that the title to or ownership of any Vessel, or the use of such Vessel (whether on a bareboat, time or voyage charter basis or any other basis), shall be requisitioned, purchased or taken by, or such Vessel shall be seized
by or forfeited to, any government of any country or any department, agency or representative thereof, pursuant to any present or future law, proclamation, decree, order or otherwise, or by any other Person(s), whether or not acting under color of
governmental authority, the compensation, purchase price, reimbursement or award for such requisition, purchase, seizure, forfeiture or other taking of such title, ownership or use shall forthwith be and become payable to the Mortgagee, who shall be
entitled to receive the same and shall apply it as provided in Section 4.10 of the Indenture. 
  
 Section 1.17 Notice of Loss, Requisition or Damage. In the event of (a) the disappearance or actual or constructive loss of any Vessel, (b) any event referred to in Section 1.16 hereof with respect to such
Vessel, or (c) any casualty, accident or damage to such Vessel in excess of $100,000.00, the Mortgagor will give written notice thereof (containing full particulars), within three business days of the occurrence thereof, to the Mortgagee.

  
 Section 1.18 Insurance. 
  
 (a) Form and Amount. 
  
 (i) Hull & Machinery Insurance. At its own
expense, Mortgagor will maintain or cause to be maintained with financially sound and reputable insurers (all risk equivalent) marine hull and machinery insurance (and, if necessary to satisfy the proviso of this subparagraph, policies of increased
value insurance) and war risk hull & machinery insurance covering confiscation, appropriation, nationalization and seizure for vessels operating outside the United States coastal waters on an agreed value basis on each Vessel against loss,
damage, fire and hurricane loss or damage and such other perils and in such amounts as are usually 

  

 7 

 
maintained on vessels engaged in the same or a similar business under blanket fleet policies with respect to vessels of like size, character and marine
activity; provided, however, that in no event shall the amount of such insurance at any time be less than full commercial value of such Vessel. 
  
 Such insurance shall be effective on the date hereof and shall name the Mortgagor, Mortgagee and other interested persons as insureds as
their respective interests may appear, but (subject only to Section 1.18(b) and Section 1.18(d) hereof) shall be payable solely to Mortgagee for further disbursement by it to the other insureds as their interests may appear and shall be applied as
set forth in Section 1.18(b) and Section 1.18(d). 
  
 With respect to policies required under this Section 1.18(a)(i), for each of the Barges, the deductible for such policies shall not exceed $100,000.00 per incident. 
  
 (ii) Liability Insurance. At its own expense, Mortgagor shall maintain entries with financially sound
and reputable insurers or protection and indemnity associations acceptable to Mortgagee, protecting the interests of Mortgagor and Mortgagee against liability for property damage to third persons and personal injury or death to any person arising
out of the maintenance, use, operation and ownership of the Vessels, protection and indemnity, collision, pollution and removal of wreck insurance (including liability to any governmental authority or other person with respect to pollution
liability), as well as war risks liability for vessels operating outside the coastal waters of the United States, in such amounts as are usually carried by persons engaged in the same or similar businesses; provided, however, that in no event shall
the amount of such insurance per person and per occurrence (subject to a usual and customary deductible) be less than the customary amount of coverage available on the market from time to time with respect to vessels of the same type, age and trade
as the Vessels. Such liability insurance shall name each of the Mortgagee, and other interested persons as additional insureds, as their respective interests may appear, but the proceeds of such policies shall be payable to the Person or Persons
actually suffering the loss in respect of which such proceeds are payable. 
  
 (b) Application of Proceeds. All policies of insurance required under this Section 1.18 shall be placed through first-class marine brokers and shall name the Mortgagor and Mortgagee, as named insureds. Policies
maintained under Section 1.18(a)(a)(i) above shall name the Mortgagee as a loss payee for the benefit of the holders of the Notes and shall provide that all payments in respect of loss or damage shall be made solely to the Mortgagee for all amounts
in excess of $250,000.00 and that upon the occurrence and continuance of a Mortgage Event of Default hereunder, all proceeds shall be payable solely to Mortgagee for the benefit of the Mortgagee and the holders of the Notes. Any insurance recoveries
under any policies to which the Mortgagee shall be so entitled shall be applied as provided in Section 4.10 of the Indenture. 
  

 8 

 (c) Constructive Total Loss. In the event of an accident, occurrence or event
resulting in a constructive total loss of any Vessel, the Mortgagee may claim for a constructive total loss of such Vessel and require that Mortgagor declare such to be a constructive total loss, and if both (i) such claim is accepted by all
underwriters under all policies then in force as to such Vessel under which payment is due for total loss and (ii) payment in full is made in cash under such policies, then, with the underwriters’ approval, the Mortgagee shall abandon such
Vessel to the underwriters under such policies, free from the lien of this Mortgage. 
  
 (d) Mortgagor’s Repair of Damage. Unless otherwise required by the Mortgagee by notice to the underwriters stating that a
Mortgage Default is continuing hereunder, although the following insurance is payable to the Mortgagee, (i) any loss under any insurance on any Vessel with respect to protection and indemnity risks may be paid directly to the Mortgagor to reimburse
it for any loss, damage or expense incurred by it and covered by such insurance or to the person to whom any liability covered by such insurance has been incurred and (ii) in the case of any loss (other than a loss covered by (i) above or by
paragraph (c) of this Section 1.18) under any insurance with respect to any Vessel involving any damage to the Vessel, the underwriters may pay directly for the repair, salvage or other charges involved or, if the Mortgagor shall have first fully
repaired the damage or paid all of the salvage or other charges, may pay the Mortgagor as reimbursement therefor; provided, however, in each case, that if such damage involves a loss in excess of U.S. $250,000, the underwriters shall not make such
payment without first obtaining the written consent thereto of the Mortgagee. Any loss covered by this paragraph which is paid to the Mortgagee but which might have been paid, in accordance with the provisions of this paragraph, directly to the
Mortgagor or others, shall be paid by the Mortgagee to, or as directed by, the Mortgagor and all other payments to the Mortgagee of losses covered by this paragraph shall be applied by the Mortgagee in the manner provided therefor herein or in the
Indenture. 
  
 (e) Carriers; Approvals.
All insurance required under this Section 1.18 shall be placed and kept with the United States Government or with reputable American, British, or other insurance companies, underwriters’ associations, clubs or underwriting funds. 
  
 (f) Taking, Requisition, etc. During the continuance
of a taking, requisition or charter of the use of any Vessel by the United States Government, the provisions of this Section shall be deemed to have been complied with in all respects as to such Vessel if the United States Government shall have
agreed, pursuant to an agreement in form and substance satisfactory to the Mortgagee, to reimburse the Mortgagee and the Mortgagor for loss or damage resulting from the risks indicated in Section 1.18(a). In the event of any taking, requisition,
charter or loss of such Vessel contemplated by this paragraph the Mortgagor shall promptly furnish to the Mortgagee an officer’s certificate stating that such taking, requisition, charter or loss has occurred and, if such is the case, that the
United States Government has agreed to reimburse the Mortgagee and the Mortgagor for loss or damage resulting from the risks covered pursuant to the requirements of Section 1.18(a). 
  

 9 

 (g) Additional Provisions. 
  
 (i) All insurance required under this Section 1.18 shall,
unless otherwise first agreed in writing by the Mortgagee, provide that (A) there shall be no recourse against the Mortgagee for the payment of premiums, supplemental or back calls or commissions, warranties or representations to underwriters, (B)
if such insurance provides for the payment of club calls, assessments or advances, there shall be no recourse against the Mortgagee for the payment thereof, (C) the policies shall provide for severability of interest as through separate policies
were issued to each additional insured, except with respect to the limits of liabilities, (D) at least thirty (30) days’ prior written notice of any cancellation, reduction in amount or other material reduction in coverage of such insurance
(seven (7) days prior written notice in the case of war risk insurance, but subject to the automatic cancellation provisions in war risk coverages) shall be given to the Mortgagee by the insurance underwriters, (E) no insurance shall be invalidated
by any assignment of any charters of any Vessel, and (F) the insurers agree to advise Mortgagee promptly in writing of any default in the payment of any premium and of any other act or omission of which such insurer has knowledge which might
invalidate or render unenforceable, in whole or in part, any such policy. 
  
 (ii) The Mortgagor shall not do any act, nor voluntarily suffer nor permit any act to be done, whereby any insurance required by this Section 1.18 shall or may be suspended, impaired or defeated, or suffer or permit
any Vessel to engage in any voyage or any activity not permitted under policies of insurance satisfactory to the Mortgagee in all respects for such voyage or the engaging in of such activity. Mortgagee may maintain its own policies of insurance on
and with respect to the Vessels, provided that no such policies shall interfere with the ability of the Mortgagor to procure the coverages required to be procured by it hereby and none of such policies need be contributory to satisfy the obligations
of Mortgagor or the requirements of the insurances required by this Section 1.18. 
  
 (iii) The Mortgagor shall, on behalf and for the benefit of itself and the Mortgagee, (A) when required by law, maintain Certificates of
Financial Responsibility (Oil Pollution) issued by the United States Coast Guard pursuant to the Federal Water Pollution Control Act, as amended inter alia by the Oil Pollution Act of 1990, and (B) maintain such additional coverage for the Vessels
in respect of pollution liability as may be required by law now or hereafter in effect or customary among owners of similar vessels engaged in trade in the United States from time to time. Mortgagor shall provide, for Mortgagee’s benefit,
freight, demurrage and defense insurance to cover any legal defense costs. 
  
 Section 1.19 Reimbursement of Mortgagee. In the event that Mortgagor shall fail to obtain or maintain insurance in accordance with the provisions of this Mortgage, Mortgagee shall have the right to obtain, and
pay the premiums on, such insurance as the Mortgagee reasonably deems necessary. The Mortgagor shall reimburse the Mortgagee on demand, with interest (at the interest rate applicable to overdue principal under the provisions of the Notes) for any
and all expenditures which the Mortgagee may from time to time make, lay out or expend in providing protection in respect of insurance, discharge or purchase of any liens, taxes, dues, assessments, governmental charges, fines and 

  

 10 

 
penalties imposed, repairs, attorneys’ fees and other matters as the Mortgagor is obligated herein to provide, but fails to provide. Such obligation of
the Mortgagor to reimburse the Mortgagee, together with interest as provided above, shall be an additional indebtedness due from the Mortgagor, secured by this Mortgage, and shall be payable by the Mortgagor on demand. The Mortgagee, though
privileged so to do, shall be under no obligation to the Mortgagor or to any other Person to take any such action or make any such expenditures, nor shall the making thereof relieve the Mortgagor of any Mortgage Event of Default in that respect.

  
 Section 1.20 Reports. Mortgagor shall furnish to the
Mortgagee annually and not less than 15 days prior to the renewal or replacement of each policy or entry thereafter, a report and an original signed certificate of insurance by a nationally recognized first-class marine insurance broker acceptable
to the Mortgagee, describing in reasonable detail the insurance then carried and maintained on and with respect to the Vessels and certifying that such insurance complies with the terms hereof and certifying that the insurances are in the form,
cover the risks and are in the amounts determined in accordance with Section 1.18 of this Mortgage, and that, in the opinion of such firm, the insurance then carried and maintained complies with the terms of said Section 1.18. Mortgagor shall obtain
for the benefit of the Mortgagee the undertaking of Mortgagor’s insurance agent or broker to promptly advise the Mortgagee in writing of any act or omission of which such agent or broker has knowledge which might invalidate or render
unenforceable, in whole or in part, any such policy. 
  
 ARTICLE
II 
 MORTGAGE EVENT OF DEFAULTS 
  
 Section 2.01 Mortgage Event of Defaults. For the purposes hereof, the occurrence and continuance of an Event of Default under (and as defined in)
the Indenture shall be a “Mortgage Event of Default” hereunder. 
  
 ARTICLE III 
 REMEDIES; APPLICATION OF PROCEEDS 
  
 Section 3.01 Sale, etc. During the continuance of any Mortgage Event
of Default, the Mortgagee shall have the right to pursue and enforce any of its rights and remedies under the Indenture and any other Note Document and, in addition, Mortgagee may do any one or more of the following as it may elect: 
  
 (a) Exercise all the rights and remedies in foreclosure and
otherwise given to mortgagees by the provisions of the U.S. Code, Tit. 46, Ch. 313, as amended, or other applicable law including the laws of any other applicable jurisdiction; 
  
 (b) Bring suit at law, in equity or in admiralty or initiate and prosecute such other judicial,
extra-judicial, or administrative proceedings as it may consider appropriate to recover any and all sums due, or declared due, on the Loan, and all other obligations due, with the right to enforce payment of said sums against any assets of the
Mortgagor, whether they are covered by this Mortgage or otherwise; 
  

 11 

 (c) Take possession of the Vessels or any of them with or without legal proceedings, at
any place where it or they may be found; and the Mortgagor or any person in possession of the Vessels or any of them, forthwith upon request by the Mortgagee, as mortgage creditor, shall deliver possession to the Mortgagee, and the Mortgagee shall
have the right, without being responsible for loss or damage, to lay up, hold, charter, lease, operate or otherwise use any of the Vessels for such period and under such conditions as it may deem most expedient for its interest, and demand, collect
and retain all hire, freights, earnings, issues, revenues, income, profits, returns, premiums, salvage awards or recoveries, recoveries in general average, and all other sums due or to become due in respect of any Vessel or in respect of any
insurance thereon from any Person whomsoever, accounting only for net profits, if any, arising from such use and charging against all receipts from such use or from the sale of such Vessel by court proceedings or pursuant to subsection (d) of this
Section 3.01 below, all costs, expenses (including without limitation attorneys’ fees and disbursements), 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 Vessels and shall take them, the Mortgagee shall have the right to dock the Vessels at any dock, pier or other premises owned or leased by the Mortgagor without charge, or at any other place at the cost and expense of the Mortgagor;

  
 (d) Take and enter into possession of any of
the Vessels, at any time, wherever the same may be, without legal process, and if it seems desirable to the Mortgagee without being responsible for loss or damage, sell it at any place or places and at such time or times as the Mortgagee may
specify, at public or private sale, by sealed bids or otherwise, on such terms and conditions as the Mortgagee deems best, free of any claim, commitment or encumbrance, regardless of the nature thereof, in favor of the Mortgagor and, except as
provided by law, in favor of any other person, upon advance notice of ten (10) consecutive days published in any newspaper authorized to publish such legal notices in the hailing port and the places of sale of such Vessels and by sending notice of
each such sale at least fourteen (14) days prior to the date fixed for such sale, by mail, to the Mortgagor. In the event that any Vessel shall be offered for sale by private sale, no newspaper publication of notice shall be required, nor notice of
adjournment of sale. Sale may be held at such place and at such time as the Mortgagee by notice may have specified, or may be adjourned by the Mortgagee 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; and any sale may be conducted without bringing such Vessel to the place designated for
such sale and in such manner as the Mortgagee may deem to be for its best advantage, and the Mortgagee may become the purchaser at any public sale, and shall have the right to credit on the purchase price any and all sums of money due to the
Mortgagee hereunder or to the Mortgagee under the Indenture, any other Note Document or under any other instrument evidencing any Note Obligation. 
  
 Section 3.02 Finality of Sale. A sale of any Vessel made in pursuance of 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.
No purchaser shall be bound to 

  

 12 

 
inquire whether notice has been given or whether any Mortgage Event of Default has occurred, or as to the propriety of the sale, or as to application of the
proceeds thereof. In case of any such sale, any purchaser who is the holder of this Mortgage shall be entitled, for the purpose of making settlement or payment for such Vessel, to apply the balance due under this Mortgage or a part thereof as part
or all of the purchase price to the extent of the amount remaining due and unpaid. At any such sale, the holder of this Mortgage may bid for and purchase any Vessel and upon compliance with the terms of sale may hold, retain and dispose of such
Vessel without further accountability. At any such sale, the Mortgagee may bid for the purchase of such Vessel and upon compliance with the terms of sale may hold and retain and dispose of such Vessel without further accountability therefor.

  
 Section 3.03 Powers and Rights of Mortgagee upon Occurrence
of a Mortgage Event of Default. 
  
 (a)
Sale. For the purpose of Section 3.01 and Section 3.02, the Mortgagor does hereby irrevocably appoint the Mortgagee and its successors and assigns the true and lawful attorneys-in-fact of the Mortgagor, in its name and stead, to make all
necessary transfers of the Vessels or any of them, and for that purpose the Mortgagee may execute all necessary instruments of assignment and transfer (including bills of sale), the Mortgagor hereby ratifying and confirming all that its said
attorney shall lawfully do by virtue hereof. Nevertheless, the Mortgagor, if so requested by the Mortgagee, shall ratify and confirm any sale of any Vessel by executing and delivering to the purchaser thereof such proper bills of sale, conveyances,
instruments of transfer and releases as may be designated in such request. 
  
 (b) Revenues and Proceeds of the Vessels. The Mortgagee is hereby irrevocably appointed attorney-in-fact of the Mortgagor, upon the happening and during the continuation of any Mortgage Event of Default in the
name of the Mortgagor to demand, collect, receive, compromise and sue for, so far as may be permitted by law, all freights, hire, earnings, issues, revenues, income and profits 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 in respect of the 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 all other instruments in writing with respect to the foregoing, the Mortgagor hereby confirming and ratifying the same. 
  
 (c) Additional Rights. The Mortgagor covenants and agrees that in addition to any and all other
rights, powers and remedies elsewhere in this Mortgage granted to and conferred upon the Mortgagee, and including, without limitation, in any suit to enforce any of its rights, powers or remedies, if a Mortgage Event of Default shall have occurred
and be continuing and shall not have been waived by the Mortgagee, the Mortgagee shall be entitled as a matter of right and not as a matter of discretion (i) to the appointment of a receiver or receivers of the Vessels or any of them and collection
of the 

  

 13 

 
freights, hire, earnings, issues, revenues, income and profits due or to become due arising from any operation of such Vessels, and any receiver or receivers
so appointed shall have full right and power to use and operate the Vessels, and (ii) to a decree ordering and directing the sale and disposal of the Vessels or any of them, and the Mortgagee may become the purchaser at such sale and shall have the
right to credit on the purchase price any and all sums of money due hereunder or to the Mortgagee under the Indenture, any other Note Document or under any other instrument evidencing any Note Obligation. The Mortgagee shall not be required to have
any Vessel marshaled (upon any sale of such Vessel pursuant to this Mortgage or otherwise) or be required to realize on any other Collateral prior to realization on any Vessel. 
  
 (d) Restoration of Position. 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 the Mortgage, and all rights, remedies and powers of the Mortgagee shall continue as if no such
proceedings had been taken. 
  
 Section 3.04 Application of
Proceeds. The proceeds of any sale and net earnings derived from the operation, use, charter, or any other employment of any Vessel by the Mortgagee, as mortgage creditor, and within any of the powers and authority above given, as well as the
proceeds of any judgment which the Mortgagee may obtain by reason of the breach or failure to perform any of the terms of this Mortgage, as well as the proceeds of any claim for damage received by the Mortgagee while exercising the powers and the
authorities above given, shall be applied by the Mortgagee as provided in the Indenture. 
  
 (a) In the event the proceeds and the net earnings referred to in this Section 3.04 should be insufficient to pay the sum total of the
Note Obligations under the Note Documents, then the Mortgagee, as mortgage creditor, shall have the right to collect and to receive from the Mortgagor, or from any other person or persons who may be chargeable in respect thereof, such amount as will
fully pay any remaining deficiency with respect to such obligations under this Mortgage and the other Note Documents. In any action to enforce the Mortgage whether in rem or in personam, in admiralty, in equity or at law, Mortgagor hereby waives any
right to trial by jury. 
  
 Section 3.05 No Obligation. The
parties agree that the grant of the powers provided to the Mortgagee pursuant to this Article III and Article IV shall not be deemed to create an obligation on the part of the Mortgagee to take any one or more of the actions herein or therein
described. 
  
 ARTICLE IV 
 GENERAL POWERS OF MORTGAGEE 
  
 (a) Arrest or Detention of Vessels. In the event that any Vessel shall be arrested or detained by a Marshal or other officer of any
court of law, equity or 

  

 14 

 
admiralty jurisdiction in any country or nation of the world or by any government or other Person, the Mortgagor does hereby authorize and empower the
Mortgagee, from the date of arrest or detention, in the name of the Mortgagor, or its successors or assigns, to apply for and receive possession of and to take possession of such Vessel with all the rights and powers that the Mortgagor, or its
successors or assigns, might have, possess or exercise in any such event; and this power of attorney shall be irrevocable and may be exercised not only by the Mortgagee but also by its appointee or appointees, with full power of substitution, to the
same extent as if the said appointee or appointees had been named as one of the attorneys above named by express designation. 
  
 (b) Suits. The Mortgagor also authorizes and empowers the Mortgagee or its appointees or any of them to appear in the name of the
Mortgagor, its successors or assigns, in any court of any country or nation of the world where a suit is pending against any Vessel because of or on account of any alleged lien against such Vessel from which such Vessel has not been released and to
take such proceedings as to them may seem proper towards the defense of such suit and the discharge of such lien, and all expenditures made or incurred by them or any of them for the purpose of such defense 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. 
  
 ARTICLE V 
 INDEMNITY 
  
 Section 5.01 Limitation on Duty of Mortgagee in Respect of Vessels. Notwithstanding anything to the contrary set forth in this Mortgage or in any other Note Document, the Mortgagee shall not be responsible for filing any instruments,
deeds, conveyances, mortgages or assurances or recording any documents or instruments in any public office or placing or displaying this Mortgage or any notices at any time or times or otherwise perfecting or maintaining the perfection of any lien
in the Vessels. The Mortgagee shall be deemed to have exercised reasonable care in the custody of any of the Vessels or any part thereof, which may come into its possession if the Vessels are accorded treatment substantially equal to that which it
accords its own property, and shall not be liable or responsible for any loss or diminution in the value of any of the Vessels or any part thereof, by reason of the act or omission of any carrier, forwarding agency or other agent or bailee selected
by the Mortgagee in good faith 
  
 Notwithstanding anything to the
contrary set forth in this Mortgage or in any other Note Document, the Mortgagee shall not be responsible for the existence, genuineness or value of any of the Vessels, or for the validity, perfection, priority or enforceability of the liens in the
Vessels, whether impaired by operation of law or by reason of any action or omission to act on its part hereunder, for the validity or sufficiency of the Vessels or any agreement or assignment contained therein, for the validity of the title of the
Mortgagor to the Vessels, for insuring the Vessels, for the payment of taxes, charges, assessments or Liens upon the Vessels or otherwise as to the maintenance of the Vessels. The Mortgagee shall have no duty to ascertain or inquire as to the
performance or observance of any of the terms of this Mortgage or any other Note 

  

 15 

 
Document by the Mortgagor or any other party to such documents. The Mortgagee makes no representation as to the validity or adequacy of this Mortgage.

  
 Section 5.02 Incorporation by Reference; Indemnity and
Expenses. 
  
 (a) The rights, privileges,
protections and benefits given to the Trustee under the Indenture are extended to, and shall be enforceable by, the Trustee, in its capacity as Mortgagee, under this Mortgage in connection with the execution, delivery and administration of this
Mortgage and any action taken by or omitted to be taken by the Mortgagee in connection with its appointment and performance under this Mortgage. 
  
 (b) The Mortgagor assumes liability for, and agrees to indemnify and hold the Mortgagee and its officers, employees and agents harmless
from, all claims, costs, expenses (including, without limitation, legal expenses), damages, losses and liabilities arising from or pertaining to this Mortgage (including the enforcement of this Mortgage) or the ownership, use, possession or
operation of the Vessels; provided that Mortgagor shall have no obligation hereunder with respect to indemnified liabilities arising from the gross negligence or willful misconduct of the Mortgagee. The agreements and indemnities contained in this
Article shall survive the maturity or earlier discharge of this Mortgage and payment in full of the Notes and Note Obligations. 
  
 (c) Without limiting the rights afforded to the Mortgagee and its officers, employees and agents pursuant to paragraph (b) of this Section
5.02 or otherwise, the Mortgagor will, upon demand, pay to the Mortgagee the amount of any and all reasonable expenses, including the reasonable fees and disbursements of its counsel and of any experts and agents, which the Mortgagee may incur in
connection with (i) the execution and administration of this Mortgage, (ii) the custody, preservation, use or operation of, or the sale of, collection from, or other realization upon, any of the Vessels, (iii) the exercise or enforcement of any of
the rights of the Mortgagee hereunder, and (iv) the failure of the Mortgagor to perform or observe any of the provisions hereof. 
  
 ARTICLE VI 
 SUNDRY PROVISIONS

  
 Section 6.01 Cumulative Remedies; No Waiver. 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 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 in the pursuance of any remedy specified in Article 3 accruing
upon any Mortgage Event of Default hereof shall impair any such right, power or remedy or be construed to be a waiver of any such Mortgage Event of Default or an acquiescence therein; nor shall the acceptance by the Mortgagee of any security or of
any payment of or on account of any part of the indebtedness secured by this Mortgage or of any payment on account of any past Mortgage Event of Default be 

  

 16 

 
construed to be a waiver of any right to take advantage of any future Mortgage Event of Default or of any past Mortgage Event of Default not completely cured
thereby. 
  
 Section 6.02 Further Assurances. In the event
that this Mortgage, or any provisions hereof, shall be deemed invalid in whole or in part by reason of any present or future law or any decision of any court having jurisdiction, 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 rights and powers granted to the Mortgagee herein, then, from time to time, the Mortgagor will do, execute, acknowledge and deliver, or cause to be done, executed, acknowledged and
delivered such other and further assurances and documents as in the opinion of the Mortgagee may reasonably be required in order to more effectively subject the Vessels to the lien of this Mortgage or more effectively subject the Vessels to the
performance of the terms and provisions of this Mortgage, or to enable this Mortgage continuously to enjoy the status of a “preferred” mortgage. 
  
 Section 6.03 No Waiver of Preferred Status. No provision of this Mortgage shall be deemed to constitute a waiver by the Mortgagee of the preferred
status hereof given by the U.S. Code, Tit. 46, Ch. 313, as amended, and any provision of this Mortgage which would otherwise constitute such a waiver shall to such extent be of no force or effect. 
  
 Section 6.04 Survival of Agreements. All representations, warranties,
covenants and agreements herein contained or made in writing in connection with this Mortgage shall survive the execution of this Mortgage and shall continue in full force and effect until all sums secured hereby shall have been paid in full, and
the same shall bind and inure to the benefit of the respective successors and assigns of the Mortgagor and the Mortgagee. 
  
 Section 6.05 Notices. All notices and other communications required or permitted to be given hereunder shall be given in the manner set forth in
Section 12.02 of the Indenture. 
  
 Section 6.06 Counterparts;
Amendments. This instrument may be executed in any number of counterparts, and each of such counterparts shall for all purposes be deemed to be an original. No amendment, modification, or waiver of any provision of this Mortgage, and no consent
with respect to any departure of the Mortgagor therefrom, shall be effective unless the same is in writing and conforms to the requirements set forth in Article IX of the Indenture. 
  
 Section 6.07 Nature of Agreements Hereunder. The agreements, terms, conditions, rights, remedies and indemnities
provided herein are in addition to, not in limitation of, and shall not be limited by, each of the agreements, terms, conditions, rights, remedies and indemnities contained in the Indenture. 
  
 Section 6.08 Recording. For purposes of this Mortgage and for purposes
of recording this Mortgage as required by 46 U.S. Code, Ch. 313, the total amount of this Mortgage is EIGHTY-FIVE MILLION UNITED STATES DOLLARS ($85,000,000)] 

  

 17 

 
plus interest, costs, expenses and performance of Mortgage covenants; the discharge amount is the same as the total amount and there is no separate discharge
amount. 
  
 Section 6.09 Construction. Any provision of
this Mortgage which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and any such prohibition
or unenforceability shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by law, Mortgagor hereby waives any provision of law which renders any provision hereof prohibited or unenforceable in
any respect. 
  
 Section 6.10 Governing Law. This Mortgage
shall be governed by the laws of the United States and, to the extent no law of the United States applies then by the laws of the State of New York. 
  
 Section 6.11 Resignation or Removal of Trustee. If the Trustee resigns or is removed in accordance with the terms of the Indenture, such retiring
Trustee shall cease to be a party to this Mortgage and all obligations imposed upon such retiring Trustee in its capacity as Mortgagee pursuant to this Mortgage shall be terminated as to such retiring Trustee and deemed to be imposed upon the
successor Trustee appointed pursuant to the terms of the Indenture. 
  

 18 

  
 IN WITNESS WHEREOF, the
Mortgagor has caused this Mortgage to be duly executed and delivered as of the day and year first above written. 
  

			
	 TRAILER BRIDGE, INC.

		
	By:	 	 

			
	 Name:
	 	 

			
	 Title:
	 	 

  

 Signature Page 
 Fleet Mortgage 
 1 

  

			
	 STATE OF TEXAS
	  	 )

	 	  	 ) ss.:

	 COUNTY OF HARRIS
	  	 )

  
 On this 30th day of
November, 2004, before me personally came William G. Gotimer, Jr. to me known, who, being by me duly sworn, did depose and say that he is the Executive Vice President and General Counsel of TRAILER BRIDGE, INC., the corporation described in and
which executed the foregoing instrument; and that he signed his name thereto pursuant to authority granted to him by the board of directors of said corporation. 
  

	
	
	 
	 (Notary Public)

  

 Signature Page 
 Fleet Mortgage 
 2 

  
 SCHEDULE I

  
 VESSELS AND BARGES 
  

			
	 Vessel

	  	 Official No.

	Barge SAN JUAN – JAX BRIDGE	  	667317
	Barge JAX – SAN JUAN BRIDGE	  	667879
	Floating Ramp 575	  	544556

  
 As used herein, the
term “Barges” means, collectively, the Barge SAN JUAN - JAX BRIDGE (Official No. 667317) and the Barge JAX – SAN JUAN BRIDGE (Official No. 667879). 
  

 Schedule I - Page 1 

  
 ANNEX I 
  
 Indenture 
  
 [A copy of the Indenture is attached.] 
  

 Annex I - Page 1Mortgage & Security Agreement

  
 Exhibit 10.28.7

  
 Prepared by and Return to: 
 Richard W. Hawthorne, Esq. 
 Foley & Lardner LLP 
 One Independent Drive, Suite 1300 
 Jacksonville, Florida 32202 
 051722/0114 
  
 CLERK’S NOTE: RECOVERY UNDER THIS MORTGAGE IS LIMITED TO $10,000,000.00. ACCORDINGLY, PURSUANT TO F.A.C. RULE 12B-4.053(32) AND CHAPTER 199.133(2) (FLORIDA STATUTES), DOCUMENTARY STAMP TAX AND INTANGIBLE
TAX ARE BEING PAID ON THAT AMOUNT. 
  
 MORTGAGE AND SECURITY
AGREEMENT 
  
 MORTGAGE AND SECURITY AGREEMENT dated
December 1, 2004 (together with any amendments or modifications hereto in effect from time to time, the “Mortgage”), between TRAILER BRIDGE, INC., a Delaware corporation, successor by merger to Kadampanattu Corp., a Delaware
corporation (“Mortgagor”), having an office at c/o 10405 New Berlin Road, East, Jacksonville, Florida 32226, Attn: William G. Gotimer, Jr., and WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as Trustee under that
certain Indenture dated of even date herewith (“Mortgagee”), having an office at Sixth Street and Marquette Avenue, MACN 9303-120, Minneapolis, Minnesota 55489, Attn: Secunda Administrator. 
  
 WITNESSETH: 
  
 WHEREAS, Mortgagor is indebted to Mortgagee in the principal sum of
Eighty Five Million and 00/100 US Dollars (US $85,000,000.00) or so much thereof as may be outstanding from time to time (the “Loan”), together with interest thereon, as evidenced by those 9 1/4% Senior Secured Notes due 2011 of
even date herewith executed by Mortgagor in favor of Mortgagee (the “Notes”); and 
  
 WHEREAS, Mortgagor is the owner of fee simple title to or an easement interest in those certain tracts of land located in the County of Duval,
State of Florida, as more particularly described in Schedule “A” attached hereto and made a part hereof (the “Real Estate”); and 
  
 WHEREAS, to induce Mortgagee to make the Loan and to secure payment of the Notes and the other obligations described below, Mortgagor has agreed to
execute and deliver this Mortgage. 
  
 GRANTING CLAUSES

  
 NOW, THEREFORE, to secure (i) the repayment of all
sums due under this Mortgage, the Notes (and all extensions, renewals, replacements and amendments thereof) and the other documents evidencing, securing or executed in connection with the Notes, including, without limitation, that certain Indenture
executed in connection with the Notes, together with any amendments, renewals, modifications or extensions thereof (collectively, the “Loan Documents”); (ii) the performance of all terms, conditions and covenants set forth in the
Loan Documents; and (iii) all other obligations or indebtedness of Mortgagor to Mortgagee of whatever kind or character and whenever borrowed or incurred in connection with the Notes and the Loan, including without limitation, principal, interest,
fees, late charges and expenses, including attorneys’ fees (subsections (i), (ii), and (iii) collectively, the “Liabilities”), Mortgagor has mortgaged, granted and conveyed and by these presents DOES HEREBY MORTGAGE, GRANT AND
CONVEY TO MORTGAGEE, ITS SUCCESSORS AND ASSIGNS, all of Mortgagor’s right, title and interest now owned or hereafter acquired in and to each of the following (collectively, the “Property”): 
  

 (A) The Real Estate; 
  
 (B) Any and all buildings and improvements now or hereafter erected on, under or over the Real Estate, if any (the
“Improvements”); 
  
 (C) Any and all fixtures,
machinery, equipment and other articles of real, personal or mixed property, belonging to Mortgagor, at any time now or hereafter installed in, attached to or situated in or upon the Real Estate, or the buildings and improvements now or hereafter
erected thereon, or used or intended to be used in connection with the Real Estate, or in the operation of the buildings and improvements, plant, business or dwelling situate thereon, whether or not such real, personal or mixed property is or shall
be affixed thereto, and all replacements, substitutions and proceeds of the foregoing (all of the foregoing herein called the “Service Equipment”), including without limitation: (i) all appliances, furniture and furnishings; all
articles of interior decoration, floor, wall and window coverings; all office, restaurant, bar, kitchen and laundry fixtures, utensils, appliances and equipment; all supplies, tools and accessories; all storm and screen windows, shutters, doors,
decorations, awnings, shades, blinds, signs, trees, shrubbery and other plantings; (ii) all building service fixtures, machinery and equipment of any kind whatsoever; all lighting, heating, ventilating, air conditioning, refrigerating, sprinkling,
plumbing, security, irrigating, cleaning, incinerating, waste disposal, communications, alarm, fire prevention and extinguishing systems, fixtures, apparatus, machinery and equipment; all elevators, escalators, lifts, cranes, hoists and platforms;
all pipes, conduits, pumps, boilers, tanks, motors, engines, furnaces and compressors; all dynamos, transformers and generators; (iii) all building materials, building machinery and building equipment delivered on site to the Real Estate during the
course of, or in connection with any construction or repair or renovation of the buildings and improvements; (iv) all parts, fittings, accessories, accessions, substitutions and replacements therefor and thereof; and (v) all files, books, ledgers,
reports and records relating to any of the foregoing; 
  
 (D) Any
and all contracts, purchase agreements, leases, subleases, tenancies, licenses, occupancy agreements or agreements to lease all or any portion of the Real Estate, Improvements, Service Equipment or all or any other portion of the Property and all
extensions, renewals, amendments, modifications and replacements thereof, and any options, rights of first refusal or guarantees relating thereto (collectively, the “Leases”); all rents, income, receipts, revenues, security
deposits, escrow accounts, reserves, issues, profits, awards and payments of any kind payable under the Leases or otherwise arising from the Real Estate, Improvements, Service Equipment or all or any other portion of the Property including, without
limitation, minimum rents, additional rents, percentage rents, parking, maintenance and deficiency rents (collectively, the “Rents”); all of the following personal property (collectively referred to as the
“Contracts”): all accounts, general intangibles and contract rights (including any right to payment thereunder, whether or not earned by performance) of any nature in each case relating to the Real Estate, Improvements, Service
Equipment or all or any other portion of the Property or the use, occupancy, maintenance, construction, repair or operation thereof; all management agreements, franchise agreements, utility agreements and deposits, building service contracts,
maintenance contracts, construction contracts and architect’s agreements relating to the Real Estate, Improvements or Service Equipment or all or any other portion of the Property; all maps, plans, surveys and specifications; all warranties and
guaranties relating to the Real Estate, Improvements or Service Equipment or all or any other portion of the Property; all permits, licenses and approvals relating to the Real Estate, Improvements or Service Equipment; and all insurance policies,
books of account and other documents, of whatever kind or character, relating to the use, construction upon, occupancy, leasing, sale or operation of the Real Estate, Improvements, Service Equipment or all or any other portion of the Property;

  
 (E) Any and all estates, rights, tenements, hereditaments,
privileges, easements, reversions, remainders and appurtenances of any kind benefiting or appurtenant to the Real Estate, Improvements or all or any other portion of the Property; all means of access to and from the Real Estate, Improvements or all
or any other portion of the Property, whether public or private; all streets, alleys, passages, ways, water courses, water and mineral rights relating to the Real Estate, Improvements or all or any other portion of the Property; and all other claims
or demands of Mortgagor, either at law or in equity, in 

  

 2 

 
possession or expectancy of, in, or to the Real Estate, Improvements or all or any other portion of the Property (all of the foregoing described in this
subsection E herein called the “Appurtenances”); 
  
 (F) Any and all “proceeds” of any of the above-described Real Estate, Improvements, Service Equipment, Leases, Rents, Contracts and Appurtenances, which term “proceeds” shall have the meaning given to it in the Uniform
Commercial Code, as amended, (the “Code”) of the State in which the Property is located (collectively, the “Proceeds”) and shall additionally include whatever is received upon the use, lease, sale, exchange,
transfer, collection or other utilization or any disposition or conversion of any of the Real Estate, Improvements, Service Equipment, Leases, Rents, Contracts and Appurtenances, voluntary or involuntary, whether cash or non-cash, including proceeds
of insurance and condemnation awards, rental or lease payments, accounts, chattel paper, instruments, documents, contract rights, general intangibles, equipment and inventory; 
  
 (G) All products, replacements, additions, substitutions, renewals and accessories of any of the foregoing items.

  
 Provided however, that notwithstanding anything in this
Mortgage to the contrary, the term “Property” shall not include the Excluded Accounts Receivable (as hereinafter defined). 
  
 TO HAVE AND TO HOLD the above granted and conveyed Property unto and to the proper use and benefit of Mortgagee, its successors and assigns,
forever. 
  
 PROVIDED ALWAYS, and these presents are upon
the express condition, that if (i) all the Liabilities that are entered into between Mortgagor and Mortgagee and secured hereunder, are paid in full, and (ii) each and every representation, warranty, agreement and covenant of this Mortgage and the
other Loan Documents are complied with and abided by in all material respects, then this Mortgage and the estate hereby created shall cease and be null and void and canceled of record. 
  
 The terms of the Loan Documents are hereby made a part of this Mortgage to the same extent and with the same effect as if
fully set forth herein. All capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Loan Documents. 
  
 AND Mortgagor covenants and agrees with and represents to Mortgagee as follows: 
  
 1. FUTURE ADVANCES; PROTECTION OF PROPERTY. This Mortgage shall secure any and all present or future advances
and readvances under the Liabilities to or for the benefit of Mortgagor or the Property within twenty (20) years from the date hereof (whether such advances are obligatory or are made at the option of Mortgagee or otherwise), including, without
limitation: (i) principal, interest, late charges, fees and other amounts due under the Liabilities or this Mortgage; (ii) all advances to Mortgagor or any other person to pay costs of erection, construction, alteration, repair, restoration,
maintenance and completion of any improvements on the Property; (iii) all advances made or costs incurred by Mortgagee for the payment of real estate taxes, assessments or other governmental charges, maintenance charges, insurance premiums,
appraisal charges, environmental inspection, audit, testing or compliance costs, and costs incurred by Mortgagee for the enforcement and protection of the Property or the lien of this Mortgage; and (iv) all legal fees, costs and other expenses
incurred by Mortgagee or Mortgagee by reason of any default or otherwise in connection with the Liabilities. The total amount of the Liabilities that may be so secured may decrease to a zero amount from time to time, or may increase from time to
time, but the total unpaid balance secured at any one time shall not exceed Twenty Million Dollars ($20,000,000.00). 
  
 Mortgagor agrees that if, at any time during the term of this Mortgage or following a foreclosure hereof (whether before or after the entry of a judgment
of foreclosure), Mortgagor fails to perform or observe any covenant or obligation under this Mortgage including, without limitation, payment of any of the foregoing, Mortgagee may (but shall not be obligated to) take such steps as are reasonably

  

 3 

 
necessary to remedy any such nonperformance or nonobservance and provide payment thereof. All amounts advanced by Mortgagee pursuant to this Section shall be
added to the amount secured by this Mortgage and the other Loan Documents (and, if advanced after the entry of a judgment of foreclosure, by such judgment of foreclosure), and shall be due and payable on demand, together with interest at the rate
applicable to payments of overdue principal and interest as set forth in the Notes (the “Default Rate”), if such failure constitutes an Event of Default, such interest to be calculated from the date of such advance to the date of
repayment thereof. 
  

	 	2.	REPRESENTATIONS, WARRANTIES AND COVENANTS. 

  
 2.1 Payment and Performance. Mortgagor shall (a) pay to Mortgagee all sums required to be paid by Mortgagor under the Loan
Documents, in accordance with their stated terms and conditions; (b) perform and comply with all terms, conditions and covenants set forth in each of the Loan Documents by which Mortgagor is bound; and (c) perform and comply with all of
Mortgagor’s obligations and duties as landlord under any Leases. 
  
 2.2 Seisin and Warranty. Mortgagor hereby warrants that (a) Mortgagor is seized of an indefeasible estate in fee simple in, and warrants the title to, the Property, subject only to those matters listed
on Schedule B of the Mortgagee Policy of Title Insurance issued to Mortgagee by Fidelity National Title Insurance Company pursuant to that certain Commitment bearing number FTA-NE04-105730 at the time of Loan closing as such policy may be endorsed
to delete the standard survey exception and include matters shown on an as-built survey of the Real Estate and the Improvements (the “Permitted Encumbrances”); (b) Mortgagor has the right, full power and lawful authority to
mortgage, grant, convey and assign the same to Mortgagee in the manner and form set forth herein; and (c) this Mortgage is a valid and enforceable first lien on the Property. Mortgagor hereby covenants that Mortgagor shall (a) preserve such title
and the validity and priority of the lien of this Mortgage and shall forever warrant and defend the same to Mortgagee against all lawful claims whatsoever; and (b) execute, acknowledge and deliver all such further documents or assurances as may at
any time hereafter be required by Mortgagee to protect fully the lien of this Mortgage. 
  
 2.3 Insurance. 
  
 (a) Mortgagor shall obtain and maintain at all times throughout the term of this Mortgage the following insurance: (i) commercial general
public liability insurance covering all operations of Mortgagor, including broad form comprehensive general liability coverage and coverage for broad form property damage, contractual damages, and personal injury, containing minimum limits of
liability of $1,000,000.00 (primary) and 1,000,000.00 (umbrella); (ii) ”All-Risk” fire and extended coverage hazard insurance (non-reporting Commercial Property Policy with Special Cause of Loss form) covering the Property in an aggregate
amount not less than 100% of the full insurable replacement value of the Property, including coverage for loss of rents or business interruption; (iii) during the course of any construction, reconstruction, remodeling or repair of any Improvements,
if any, builders’ all-risk extended coverage insurance (non-reporting Completed Value with Special Cause of Loss form) in amounts based upon the completed replacement value of the Improvements (excluding roads, foundations, parking areas,
paths, walkways and like improvements) and endorsed to provide that occupancy by any person shall not void such coverage; (iv) if the Property is required to be insured pursuant to the National Flood Insurance Reform Act of 1994 if applicable, and
the regulations promulgated thereunder, flood insurance in an amount at least equal to the lesser of the agreed upon full insurable replacement value of the Property (less any value attributable to the Real Estate) or the maximum limit of coverage
available; (v) if applicable, insurance which complies with the workers’ compensation and employers’ liability laws of all states in which Mortgagor shall be required to maintain such insurance; and (vi) such other insurance as Mortgagee
may reasonably require provided such insurance is customary for similar properties in the same geographic location and is available at commercially reasonable rates consistent with the insurance industry standard for such coverages. 
  

 4 

 (b) Each insurance policy required under this Section shall: (i) be written by an
insurance company authorized or licensed to do business in the state within which the Property is located having an A. M. Best Company, Inc. rating of “A-” or higher and a financial size category of not less than IX; (ii) be for terms of
at least one year, with premium prepaid; (iii) be subject to the reasonable approval of Mortgagee as to insurance companies, amounts, content, forms of policies and expiration dates; and (iv) name Mortgagee, its successors and assigns: (1) as an
additional insured under all liability insurance policies, and (2) as the first mortgagee, under a standard non-contributory mortgagee clause, on all property insurance policies and all loss of rents or loss of business income insurance policies.

  
 (c) Mortgagor further agrees that each
insurance policy: (i) shall provide at least thirty (30) days’ prior written notice to Mortgagee prior to any policy reduction or cancellation for any reason; (ii) shall contain an endorsement or agreement by the insurer that any loss shall be
payable to Mortgagee in accordance with the terms of such policy notwithstanding any act or negligence of Mortgagor which might otherwise result in forfeiture of such insurance; (iii) shall waive all rights of setoff, counterclaim, deduction or
subrogation against Mortgagor; and (iv) shall exclude Mortgagee from the operation of any coinsurance clause. 
  
 (d) At least thirty (30) days prior to the expiration of any insurance policy, Mortgagor shall furnish evidence satisfactory to Mortgagee
that such policy has been renewed or replaced or is no longer required. 
  
 (e) Notwithstanding the foregoing, in the event that Mortgagor fails to maintain insurance in accordance with this Section 2.3, and Mortgagee elects to obtain insurance to protect its interests hereunder, Mortgagee
may obtain insurance in any amount and of any type Mortgagee deems appropriate to protect Mortgagee’s interest only and Mortgagee shall have no duty or obligation to Mortgagor to maintain insurance in any greater amount or of any other type for
the benefit of Mortgagor. Mortgagee agrees to provide to Mortgagor written notice of its election to obtain insurance. All insurance premiums incurred or paid by Mortgagee shall be at Mortgagor’s sole cost and expense in accordance with Section
1 hereof. Mortgagee’s election to obtain insurance shall not be deemed to waive any Event of Default (as hereinafter defined) hereunder. 
  
 2.4 Taxes and Other Charges. Mortgagor shall promptly pay and discharge all taxes, assessments, water and sewer rents, and
other governmental charges imposed upon the Property when due, but in no event after interest or penalties commence to accrue thereon or become a lien upon the Property. Notwithstanding the foregoing, Mortgagor shall have the right to contest, at
its own expense, by appropriate legal proceedings conducted in good faith and with due diligence, the amount or validity of such taxes, assessments, water and sewer rents, or other governmental charges, provided that: (a) Mortgagor has either
deposited with the tax collectors or, at the option of Mortgagee, established on its books or by deposit of cash with Mortgagee a reserve for the payment thereof in such amount as the tax collector or Mortgagee may require; and (b) such contest
operates to prevent collection, stay any proceedings which may be instituted to enforce payment of such item, and prevent a sale of the Property to pay such item. Mortgagor shall promptly provide to Mortgagee, upon request, copies of receipted tax
bills, canceled checks or other evidence satisfactory to Mortgagee evidencing that such taxes, assessments, water and sewer rents, and other governmental charges have been timely paid. Mortgagor shall not claim or demand or be entitled to any credit
on account of the Liabilities for any part of the taxes paid with respect to the Property or any part thereof and no deduction shall otherwise be made or claimed from the taxable value of the Property, or any part thereof, by reason of this
Mortgage. 
  
 2.5 Intentionally omitted.

  
 2.6 Transfer of Title. Except
for Permitted Encumbrances or as allowed pursuant to Section 9.10, without the prior written consent of Mortgagee in each instance, Mortgagor shall not cause or permit any transfer of the Property or any part thereof, whether voluntarily,
involuntarily or by operation of law, nor shall Mortgagor enter into any agreement or transaction to transfer, or accomplish in form or 

  

 5 

 
substance a transfer, of the Property. A “transfer” of the Property includes: (a) the direct or indirect sale, transfer or conveyance or
agreement to sell, transfer or convey the Property or any portion thereof or interest therein; (b) the execution of an installment sale contract or similar instrument affecting all or any portion of the Property; (c) if Mortgagor, or any general
partner or member of Mortgagor, is a corporation, partnership, limited liability company or other business entity, the transfer (whether in one transaction or a series of transactions) of any stock, partnership, limited liability company or other
ownership interests in such corporation, partnership, limited liability company or entity other than a transfer of such ownership interests to the Parent (as defined herein) or to any subsidiary that is wholly owned, directly or indirectly, by
Parent; (d) if Mortgagor, or any general partner or member of Mortgagor, is a corporation, the creation or issuance of new stock by which an aggregate of more than 10% of such corporation’s stock shall be vested in a party or parties other than
the Parent who are not now stockholders; and (e) an agreement by Mortgagor leasing all or a substantial part of the Property for other than actual occupancy by a space tenant thereunder or a sale, assignment or other transfer of or the grant of a
security interest in and to any Leases. Notwithstanding anything contained in this Section 2.6 to the extent, and only to the extent, that any transfer of the Property or any direct or indirect interest therein is permitted by the Indenture, such
transfer will not be deemed a “transfer” prohibited herein. 
  
 2.7 No Encumbrances. Except for Permitted Encumbrances (as defined herein) and any Permitted Collateral Liens (as defined in the Indenture), Mortgagor shall not create or permit to exist any mortgage,
pledge, lien, security interest (including, without limitation, a purchase money security interest), encumbrance, attachment, levy, distraint or other judicial process on or against the Property or any part thereof (including, without limitation,
fixtures and other personality), whether superior or inferior to the lien of this Mortgage, without the prior written consent of Mortgagee. If any unpermitted lien or encumbrance is filed or entered without Mortgagee’s consent, Mortgagor shall
have it removed of record within thirty (30) days after it is filed or entered. 
  
 2.8 Removal of Fixtures. Except as permitted in the Indenture, Mortgagor shall not remove or permit to be removed from the
Property any fixtures presently or in the future owned by Mortgagor as the term “fixtures” is defined by the law of the state where the Property is located (unless such fixtures have been replaced with similar fixtures of equal or greater
utility and value). 
  
 2.9 Maintenance and
Repair; Alterations. 
  
 (a) Mortgagor
shall (i) abstain from and not permit the commission of waste in or about the Property; (ii) keep the Property, at Mortgagor’s own cost and expense, in good repair, working order and condition, ordinary wear and tear excepted; (iii) make or
cause to be made, as and when necessary, all repairs and replacements, whether or not insurance proceeds are available therefor; and (iv) not remove, demolish, materially alter, discontinue the use of, permit to become vacant or deserted, or
otherwise dispose of all or any material part of the Property. All alterations, replacements, renewals or additions made pursuant hereto shall automatically become a part of the Property and shall be covered by the lien of this Mortgage. 

 
 (b) Mortgagee, and any persons authorized by Mortgagee,
shall have the right, but not the obligation, to enter upon the Property at any reasonable time and upon reasonable notice to inspect and photograph its condition and state of repair. In the event any such inspection reveals, in the sole discretion
of Mortgagee, the necessity for any repair, alteration, replacement, clean-up or maintenance, Mortgagor shall, at the discretion of Mortgagee, either: (i) cause such work to be effected immediately; or (ii) promptly establish an interest bearing
reserve fund with Mortgagee in an amount reasonably determined by Mortgagee for the purpose of effecting such work. 
  
 2.10 Compliance with Applicable Laws. Mortgagor agrees to observe, conform and comply, and to cause its tenants to observe,
conform and comply with all federal, state, county, municipal and other governmental or quasi-governmental laws, rules, regulations, ordinances, codes, requirements, covenants, conditions, orders, licenses, permits, approvals and restrictions,
including without limitation, 

  

 6 

 
Environmental Laws (as defined below) and the Americans with Disabilities Act of 1990 (collectively, the “Legal Requirements”), now or
hereafter affecting all or any part of the Property, its occupancy or the business or operations now or hereafter conducted thereon and the personality contained therein, within such time as required by such Legal Requirements. Mortgagor shall have
the right, after prior written notice to Mortgagee, to contest at its own expense the application of any hereafter enacted Legal Requirement applicable to the Property by appropriate proceedings conducted in good faith and with due diligence;
provided, however, that the Property or any material part thereof not be in danger of being forfeited or subjected to any lien, in which event Mortgagor shall provide Mortgagee with reasonable security to insure that no forfeiture or lien shall
attach to the Property. Mortgagor represents and warrants that it has caused the Property to be designed, and the Property currently is, in compliance with all Legal Requirements applicable to the Property. 
  
 2.11 Damage, Destruction and Condemnation.

  
 (a) If all or any part of the Property shall
be damaged or destroyed, or if title to or the temporary use of the whole or any part of the Property shall be taken or condemned by a competent authority for any public or quasi-public use or purpose, there shall be no abatement or reduction in the
amounts payable by Mortgagor under the Loan Documents and Mortgagor shall continue to be obligated to make such payments. 
  
 (b) If all or any part of the Property is partially or totally damaged or destroyed, Mortgagor shall give prompt notice thereof to
Mortgagee, and Mortgagee may make proof of loss if not made promptly by Mortgagor. Mortgagor hereby authorizes and directs any affected insurance company to make payment under such insurance, including return of unearned premiums, to Mortgagee
instead of to Mortgagor and Mortgagee jointly, and Mortgagor appoints Mortgagee as Mortgagor’s attorney-in-fact to endorse any draft thereof, which appointment, being for security, is coupled with an interest and irrevocable. Mortgagee is
hereby authorized and empowered by Mortgagor to settle, adjust or compromise, in consultation with Mortgagor, any claims for loss, damage or destruction to the Property. Mortgagor shall pay all costs of collection of insurance proceeds payable on
account of such damage or destruction. Mortgagor shall have no claim against the insurance proceeds, or be entitled to any portion thereof, and all rights to the insurance proceeds are hereby assigned to Mortgagee as security for payment of the
Liabilities. Mortgagee shall have the option, in its sole discretion, of paying or applying all or any part of the insurance proceeds to: (i) reduction of the Liabilities; (ii) restoration, replacement or repair of the Property in accordance with
Mortgagee’s standard construction loan disbursement conditions and requirements; or (iii) Mortgagor. 
  
 (c) Immediately upon obtaining knowledge of the institution of any proceeding for the condemnation of all or any part of the Property,
Mortgagor shall give notice to Mortgagee. Mortgagor shall, at its sole cost and expense, diligently prosecute any such proceeding and shall consult with Mortgagee, its attorneys and experts, and shall cooperate with it in the defense of any such
proceeding. Mortgagee may participate in any such proceeding and Mortgagor shall from time to time deliver to Mortgagee all instruments requested by it to permit such participation. Mortgagor shall not, without Mortgagee’s prior written
consent, enter into any agreement (i) for the taking or conveyance in lieu thereof of all or any part of the Property, or (ii) to compromise, settle or adjust any such proceeding. All awards and proceeds of condemnation are hereby assigned to
Mortgagee, and Mortgagor, upon request by Mortgagee, agrees to make, execute and deliver any additional assignments or documents necessary from time to time to enable Mortgagee to collect the same. Such awards and proceeds shall be paid or applied
by Mortgagee, in its sole discretion, to: (i) reduction of the Liabilities; (ii) restoration, replacement or repair of the Property in accordance with Mortgagee’s standard construction loan disbursement conditions and requirements; or (iii)
Mortgagor. 
  
 (d) Nothing herein shall relieve
Mortgagor of its duty to repair, restore, rebuild or replace the Property following damage or destruction or partial condemnation if no or inadequate 

  

 7 

 
insurance proceeds or condemnation awards are available to defray the cost of repair, restoration, rebuilding or replacement. 
  
 (e) Notwithstanding the provisions of subparagraphs (b) and
(c) above, in the event that all or any part of the Property is damaged by fire or other casualty, and Mortgagor promptly notifies Mortgagee of its desire to repair and restore the same, then provided that the following terms and conditions are and
remain fully satisfied by Mortgagor, Mortgagee shall disburse insurance proceeds for repair and restoration of the Property against completed work in accordance with Mortgagee’s standard construction loan disbursement conditions and
requirements (which may be contained in an agreement which Mortgagee may require Mortgagor to sign); otherwise, and to the extent of any excess proceeds, Mortgagee shall have the right to apply the proceeds toward reduction of the Liabilities:

  
 (i) no Event of Default or event which, with
the giving of notice or the passage of time, or both, would constitute an Event of Default under any of the Loan Documents shall have occurred and be continuing; 
  
 (ii) Mortgagor shall have delivered evidence satisfactory to Mortgagee that the Property can be fully
repaired and restored prior to the maturity of the Notes; 
  
 (iii) no material Lease or contract is cancelable or terminable by the tenant, purchaser or Mortgagor on account of the casualty or, if it is, either (1) the tenant, purchaser or Mortgagor, as applicable, has waived
in writing its right to cancel, or (2) in the event any Lease or contract is cancelled or terminated, Mortgagor has provided to Mortgagee substitute collateral in the form of cash in the amount represented by the cancelled or terminated Lease or
contract; 
  
 (iv) the work is performed under a
stipulated sum or guaranteed maximum price contract satisfactory to Mortgagee in accordance with plans and specifications and a budget satisfactory to Mortgagee and in compliance with all Legal Requirements; 
  
 (v) Mortgagor shall have deposited with Mortgagee for
disbursement in connection with the restoration the greater of: (1) the applicable deductible under the insurance policies covering the loss; or (2) the amount by which the cost of restoration of the Property to substantially the same value,
condition and character as existed prior to such damage is reasonably estimated by Mortgagee to exceed the net insurance proceeds available for restoration; and 
  
 (vi) Mortgagor has paid as and when due all of Mortgagee’s costs and expenses incurred in connection
with the collection and disbursement of insurance proceeds, including without limitation, inspection, monitoring, engineering and legal fees. If not paid on demand, and at Mortgagee’s option, such costs may be deducted from the disbursements
made by Mortgagee or added to the sums secured by this Mortgage in accordance with the provisions of Section 1 hereof. 
  
 2.12 Required Notices. Mortgagor shall notify Mortgagee within ten (10) days of: (a) receipt of any notice from any
governmental or quasi-governmental authority relating to or alleging a violation of any Legal Requirement; (b) a substantial change in the occupancy or use of all or any part of the Property; (c) receipt of any notice of default from the holder of
any lien or security interest in all or any part of the Property; (d) commencement of any litigation adversely affecting or potentially adversely affecting the financial ability of Mortgagor or the value of the Property; (e) a pending or threatened
condemnation of all or any part of the Property; (f) a fire or other casualty causing damage to all or any material part of the Property; (g) receipt of any notice with regard to any Release of Hazardous Substances (as such terms are defined below)
or any other environmental matter affecting the Property or Mortgagor’s interest therein; (h) receipt of any request for information, demand letter or notification of potential liability from any entity relating to potential responsibility for
investigation or clean-up of Hazardous Substances on the Property or at any other site owned or operated by Mortgagor; (i) receipt of any notice from any tenant of all or any part of the Property alleging a default, failure to perform or any 

  

 8 

 
right to terminate its lease or to set-off rents; or (j) receipt of any notice of the imposition of, or of threatened or actual execution on, any lien on or
security interest in all or any part of the Property. 
  
 2.13 Books and Records; Inspection. Mortgagor shall keep and maintain (a) complete and accurate books and records, in accordance with generally accepted accounting principles consistently applied, reflecting all items of
income and expense in connection with the operation of the Property, and (b) copies of all written contracts, leases and other material agreements affecting the Property. Mortgagee or its designated representatives shall, upon reasonable prior
notice to Mortgagor, have (a) the right of entry and free access to the Property during business hours (which may be without notice in any case of emergency) to inspect the Property, and (b) the right upon reasonable prior notice during normal
business hours to Mortgagor to examine and audit all books, contracts and records of Mortgagor relating to the Property during normal business hours. 
  
 2.14 Right to Reappraise. Mortgagee shall have the right to conduct or have conducted by an independent appraiser acceptable
to Mortgagee appraisals of the Property in form and substance satisfactory to Mortgagee at the sole cost and expense of Mortgagor; provided, however, that Mortgagor shall not be obligated to bear the expense of such
appraisals so long as (a) no Event of Default exists, and (b) such appraisals are not required by applicable law, rule or regulation of any governmental authority having jurisdiction over Mortgagee. The cost of such appraisals, if chargeable to
Mortgagor as aforesaid, shall be added to the Liabilities and shall be secured by this Mortgage in accordance with the provisions of Section 1 hereof. 
  
 3. SECURITY AGREEMENT. This Mortgage constitutes a security agreement under the Code and shall be deemed to constitute a fixture financing
statement. Mortgagor hereby grants to Mortgagee a security interest in the personal and other property (other than real property) included in the Property, and all replacements of, substitutions for, and additions to, such property, and the proceeds
thereof. Mortgagor shall, at Mortgagor’s own expense, execute, deliver, file and refile any financing or continuation statements or other security agreements Mortgagee may require from time to time to perfect, confirm or maintain the lien of
this Mortgage with respect to such property. A photocopy of an executed financing statement shall be effective as an original. Without limiting the foregoing, Mortgagor hereby irrevocably appoints Mortgagee attorney-in-fact for Mortgagor to execute,
deliver and file such instruments for or on behalf of Mortgagor at Mortgagor’s expense, which appointment, being for security, is coupled with an interest and shall be irrevocable. 
  
 4. ASSIGNMENT OF LEASES. 
  
 4.1 Mortgagor hereby absolutely, presently and unconditionally conveys, transfers and assigns to Mortgagee
all of Mortgagor’s right, title and interest, now existing or hereafter arising, in and to the Leases and Rents. Notwithstanding that this assignment is effective immediately, so long as no Event of Default exists, Mortgagor shall have the
privilege under a revocable license granted hereby to operate and manage the Property and to collect, as they become due, but not prior to accrual, the Rents. Mortgagor shall receive and hold such Rents in trust as a fund to be applied, and
Mortgagor hereby covenants and agrees that such Rents shall be so applied, first to the operation, maintenance and repair of the Property and the payment of interest, principal and other sums becoming due under the Liabilities, before retaining
and/or disbursing any part of the Rents for any other purpose. The license herein granted to Mortgagor shall automatically, without notice or any other action by Mortgagee, terminate upon the occurrence of an Event of Default, and all Rents
subsequently collected or received by Mortgagor shall be held in trust by Mortgagor for the sole and exclusive benefit of Mortgagee. Nothing contained in this Section 4.1, and no collection by Mortgagee of Rents, shall be construed as imposing on
Mortgagee any of the obligations of the lessor under the Leases. 
  
 4.2 Mortgagor shall timely perform all of its obligations under the Leases, if any. 
  

 9 

 5. DECLARATION OF NO OFFSET. Mortgagor represents to Mortgagee that Mortgagor has no
knowledge of any offsets, counterclaims or defenses to the Liabilities either at law or in equity. Mortgagor shall, within three (3) business days upon request in person or within seven (7) business days upon request by mail, furnish to Mortgagee or
Mortgagee’s designee a written statement in form satisfactory to Mortgagee stating, to Mortgagor’s knowledge, the amount due under the Liabilities and whether there are offsets or defenses against the same, and if so, the nature and extent
thereof. 
  
 6. ENVIRONMENTAL MATTERS. 

 
 6.1 Definitions. As used herein,
“Environmental Laws” shall mean all existing or future federal, state and local statutes, ordinances, regulations, rules, executive orders, standards and requirements, including the requirements imposed by common law, concerning or
relating to industrial hygiene and the protection of health and the environment including but not limited to: (a) those relating to the generation, manufacture, storage, transportation, disposal, release, emission or discharge of Hazardous
Substances (as hereinafter defined); (b) those in connection with the construction, fuel supply, power generation and transmission, waste disposal or any other operations or processes relating to the Property; and (c) those relating to the
atmosphere, soil, surface and ground water, wetlands, stream sediments and vegetation on, under, in or about the Property. Any terms mentioned herein which are defined in any Environmental Law shall have the meanings ascribed to such terms in said
laws; provided, however, that if any of such laws are amended so as to broaden any term defined therein, such broader meaning shall apply subsequent to the effective date of such amendment. 
  
 6.2 Representations, Warranties and Covenants.
Mortgagor represents, warrants, covenants and agrees that: 
  
 (a) To Mortgagor’s knowledge, neither Mortgagor nor the Property or any occupant thereof is in violation of any Environmental Law relating to the Property. Neither Mortgagor nor the Property or any occupant
thereof is subject to any existing, or to Mortgagor’s knowledge, pending or threatened investigation or inquiry by any governmental authority pertaining to any Environmental Law relating to the Property. Mortgagor shall not cause or permit the
Property to be in violation of, or do anything which would subject the Property to any remedial obligations under, any Environmental Law, and shall promptly notify Mortgagee in writing of any existing, pending or threatened investigation or inquiry
by any governmental authority in connection with any Environmental Law. In addition, Mortgagor shall provide Mortgagee with copies of any and all material written communications with any governmental authority in connection with any Environmental
Law, concurrently with Mortgagor’s giving or receiving of same relating to the Property. 
  
 (b) Mortgagor has taken all steps necessary to determine that there has been no release, spill, discharge, leak, disposal or emission
(individually a “Release” and collectively, “Releases”) of any Hazardous Material, Hazardous Substance or Hazardous Waste, including gasoline, petroleum products, explosives, toxic substances, solid wastes and
radioactive materials (collectively, “Hazardous Substances”) at, upon, under or within the Property. The use which Mortgagor or any other occupant of the Property makes or intends to make of the Property will not result in Release
of any Hazardous Substances on or to the Property. During the term of this Mortgage, Mortgagor shall take all steps necessary to determine whether there has been a Release of any Hazardous Substances on or to the Property and if Mortgagor finds a
Release has occurred, Mortgagor shall remove or remediate the same promptly upon discovery at its sole cost and expense. Mortgagor agrees to and does hereby indemnify Mortgagee for any expenses, liens, claims, losses or liabilities arising out of or
in connection with any Releases at, upon, under or within the Property or violations of Environmental Laws related to the Property either occurring prior to or during the term of this Mortgage. 
  
 (c) The Property has never been used by the present or, to
Mortgagor’s knowledge, previous owners and/or operators nor will be used during the term of this Mortgage to refine, 

  

 10 

 
produce, store, handle, transfer, process, transport, generate, manufacture, heat, treat, recycle or dispose of Hazardous Substances. 
  
 (d) The Property: (i) is being and, to Mortgagor’s
knowledge, has been operated in compliance with all Environmental Laws, and all permits required thereunder have been obtained and complied with in all respects; and (ii) does not have any Hazardous Substances present excepting those quantities
present, in proper storage containers and in compliance with all Legal Requirements and Environmental Laws, in the ordinary course of Mortgagor’s business (“Permitted Substances”). 
  
 (e) Mortgagor will operate the Property in compliance with
all Environmental Laws and, other than Permitted Substances, will not place or knowingly permit to be placed any Hazardous Substances on the Property. 
  
 (f) No lien has been attached to or threatened to be imposed upon the Property, and there is no basis for the imposition of any such lien
based on any governmental action under Environmental Laws. Neither Mortgagor nor, to Mortgagor’s knowledge, any other person has been, is or will be involved in operations at the Property which could lead to the imposition of environmental
liability on Mortgagor, or on any subsequent or former owner of the Property, or the creation of an environmental lien on the Property. In the event that any such lien is filed, Mortgagor shall, within (30) days from the date that the Mortgagor is
given notice of such lien (or within such shorter period of time as is appropriate in the event that steps have commenced to have the Property sold), either: (i) pay the claim and remove the lien from the Property; or (ii) furnish a cash deposit,
bond or other security satisfactory in form and substance to Mortgagee in an amount sufficient to discharge the claim out of which the lien arises. 
  
 6.3 Right to Inspect and Cure. Mortgagee shall have the right to conduct or have conducted by its agents or contractors such
environmental inspections, audits and tests as Mortgagee shall deem necessary or advisable from time to time at the sole cost and expense of Mortgagor; provided, however, that Mortgagor shall not be obligated to bear the
expense of such environmental inspections, audits and tests so long as (a) no Event of Default exists, and (b) Mortgagee has no cause to believe in its sole reasonable judgment that there has been a Release or threatened Release of Hazardous
Substances at the Property or that Mortgagor or the Property is in violation of any Environmental Law. The cost of such inspections, audits and tests, if chargeable to Mortgagor as aforesaid, shall be added to the Liabilities and shall be secured by
this Mortgage. Mortgagor shall, and shall cause each tenant of the Property to, cooperate with such inspection efforts; such cooperation shall include, without limitation, supplying all information requested concerning the operations conducted and
Hazardous Substances located at the Property. In the event that Mortgagor fails to comply with any Environmental Law, Mortgagee may, in addition to any of its other remedies under this Mortgage, cause the Property to be in compliance with such laws
and the cost of such compliance shall be added to the sums secured by this Mortgage in accordance with the provisions of Section 1 hereof. 
  
 7. EVENTS OF DEFAULT. Each of the following shall constitute a default (each, an “Event of Default”)
hereunder: 
  
 7.1 Subject to any applicable
notice rights or cure period contained in the Loan Documents, if any, non-payment when due of any sum required to be paid by Mortgagor under the Notes or any of the Loan Documents, including without limitation, principal and interest; 
  
 7.2 A breach of any representation, warranty or covenant
contained in Sections 2.2, 2.3, 2.4, 2.6, 2.7 or 2.12 hereof; 
  
 7.3 A breach by Mortgagor of any other term, representation, warranty, covenant, condition, obligation or agreement under this Mortgage, and the continuance of such breach for a period of thirty (30) days after
written notice thereof shall have been given to Mortgagor, except that such thirty 

  

 11 

 
(30) day period shall be extended provided that Mortgagor commences cure within such thirty (30) day period and thereafter diligently and continuously
pursues cure; 
  
 7.4 An event of default under
the Notes, any of the other Loan Documents (beyond any cure period, if any, provided for in the applicable Loan Document); 
  
 7.5 The filing by or against Mortgagor of a petition seeking relief, or the granting of relief, under the Federal Bankruptcy Code or any
similar federal or state statute; any assignment for the benefit of creditors made by Mortgagor; the appointment of a custodian, receiver, liquidator or trustee for Mortgagor or for any of the property of Mortgagor, or any action by Mortgagor to
effect any of the foregoing; or if Mortgagor becomes insolvent (however defined) or is not paying its debts generally as they become due; provided however, that no involuntary appointment or proceeding shall be an Event of Default unless the same
shall remain unvacated for a period of sixty (60) days; 
  
 7.6 Except as permitted in the Indenture, the dissolution, liquidation, merger, consolidation or reorganization of Mortgagor, or the institution of any proceeding to effect any of the foregoing; or 
  
 7.7 The filing, entry or issuance of any judgment,
execution, garnishment, attachment, distraint or lien against Mortgagor or its property, subject to the provisions of Section 2.7 hereof, if applicable. 
  
 8. REMEDIES. If an Event of Default shall have occurred, Mortgagee may take any of the following actions: 
  
 8.1 Acceleration. Mortgagee may declare the
entire amount of the Liabilities immediately due and payable, without presentment, demand, notice of any kind, protest or notice of protest, all of which are expressly waived, notwithstanding anything to the contrary contained in any of the Loan
Documents. Mortgagee may charge and collect interest from the date of default on the unpaid balance of the Liabilities, at the Default Rate. 
  
 8.2 Possession. Mortgagee may enter upon and take possession of the Property, with or without legal action, lease the
Property, collect therefrom all rentals and, after deducting all costs of collection and administration expense, apply the net rentals to any one or more of the following items in such manner and in such order of priority as Mortgagee, in
Mortgagee’s sole discretion, may elect: the payment of any sums due under any prior lien, taxes, water and sewer rents, charges and claims, insurance premiums and all other carrying charges, to the maintenance, repair or restoration of the
Property, or on account of the Liabilities. Mortgagee is given full authority to do any act which Mortgagor could do in connection with the management and operation of the Property. This covenant is effective either with or without any action
brought to foreclose this Mortgage and without applying for a receiver of such rents. In addition to the foregoing, upon the occurrence of an Event of Default, Mortgagor shall pay monthly in advance to Mortgagee or to any receiver appointed to
collect said rents the fair and reasonable rental value for Mortgagor’s use and occupation of the Property, and upon default in any such payment Mortgagor shall vacate and surrender the possession of the Property to Mortgagee or to such
receiver. If Mortgagor does not vacate and surrender the Property then Mortgagor may be evicted by summary proceedings. 
  
 8.3 Foreclosure. Mortgagee may institute any one or more actions of mortgage foreclosure against all or any part of the
Property, or take such other action at law, equity or by contract for the enforcement of this Mortgage and realization on the security herein or elsewhere provided for, as the law may allow, and may proceed therein to final judgment and execution
for the entire unpaid balance of the Liabilities. The unpaid balance of any judgment shall bear interest at the greater of (a) the statutory rate provided for judgments, or (b) the Default Rate. Without limiting the foregoing, Mortgagee may
foreclose this Mortgage and exercise its rights as a secured party for all or any portion of the Liabilities 

  

 12 

 
which are then due and payable, subject to the continuing lien of this Mortgage for the balance not then due and payable. In case of any sale of the Property
by judicial proceedings, the Property may be sold in one parcel or in such parcels, manner or order as Mortgagee in its sole discretion may elect. Mortgagor, for itself and anyone claiming by, through or under it, hereby agrees that Mortgagee shall
in no manner, in law or in equity, be limited, except as herein provided, in the exercise of its rights in the Property or in any other security hereunder or otherwise appertaining to the Liabilities or any other obligation secured by this Mortgage,
whether by any statute, rule or precedent which may otherwise require said security to be marshaled in any manner and Mortgagor, for itself and others as aforesaid, hereby expressly waives and releases any right to or benefit thereof. The failure to
make any tenant a defendant to a foreclosure proceeding shall not be asserted by Mortgagor as a defense in any proceeding instituted by Mortgagee to collect the Liabilities or any deficiency remaining unpaid after the foreclosure sale of the
Property. 
  
 8.4 Appointment of
Receiver. Mortgagee may petition a court of competent jurisdiction to appoint a receiver of the Property. Such appointment may be made either before or after sale, without notice, without regard to the solvency or insolvency of Mortgagor at
the time of application for such receiver, without regard to the then value of the Property or whether the Property shall be then occupied as a homestead or not, and without regard to whether Mortgagor has committed waste or allowed deterioration of
the Property, and Mortgagee or any agent of Mortgagee may be appointed as such receiver. Mortgagor hereby agrees that Mortgagee has a special interest in the Property and absent the appointment of such receiver the Property shall suffer waste and
deterioration and Mortgagor further agrees that it shall not contest the appointment of a receiver and hereby so stipulates to such appointment pursuant to this paragraph. Such receiver shall have the power to perform all of the acts permitted
Mortgagee pursuant to Section 8.2 above and such other powers which may be necessary or customary in such cases for the protection, possession, control, management and operation of the Property during such period. 
  
 8.5 Rights as a Secured Party. Mortgagee shall
have, in addition to other rights and remedies available at law or in equity, the rights and remedies of a secured party under the Code. Mortgagee may elect to foreclose such of the Property as then comprise fixtures pursuant either to the law
applicable to foreclosure of an interest in real estate or to that applicable to personal property under the Code. To the extent permitted by law, Mortgagor waives the right to any stay of execution and the benefit of all exemption laws now or
hereafter in effect. 
  
 8.6 Excess
Monies. Mortgagee may apply on account of the Liabilities any unexpended monies still retained by Mortgagee that were paid by Mortgagor to Mortgagee: (a) for the payment of, or as security for the payment of taxes, assessments or other
governmental charges, insurance premiums, or any other charges; or (b) to secure the performance of some act by Mortgagor. 
  
 8.7 Other Remedies. Mortgagee shall have the right, from time to time, to bring an appropriate action to recover any sums
required to be paid by Mortgagor under the terms of this Mortgage, as they become due, without regard to whether or not any other Liabilities shall be due, and without prejudice to the right of Mortgagee thereafter to bring an action of mortgage
foreclosure, or any other action, for any default by Mortgagor existing at the time the earlier action was commenced. In addition, Mortgagee shall have the right to set-off all or any part of any amount due by Mortgagor to Mortgagee under any of the
Liabilities, against any indebtedness, liabilities or obligations owing by Mortgagee in any capacity to Mortgagor, including any obligation to disburse to Mortgagor any funds or other property on deposit with or otherwise in the possession, control
or custody of Mortgagee. 
  
 9. MISCELLANEOUS.

  
 9.1 Notices. All notices and
communications under this Mortgage shall be in writing and shall be given by either (a) hand-delivery, (b) first class mail (postage prepaid), or (c) reliable overnight commercial courier (charges prepaid), to the addresses listed in this Mortgage
with copies to the addresses set forth below. Notice shall be deemed to have been given and received: (a) if by hand 

  

 13 

 
delivery, upon delivery; (b) if by mail, three (3) calendar days after the date first deposited in the United States mail; and (c) if by overnight courier,
on the date scheduled for delivery. A party may change its address by giving written notice to the other party as specified herein. 
  

			
	If to Mortgagor:	  	 TRAILER BRIDGE, INC.
 10405 New Berlin Road,
East
 Jacksonville, FL 32226
 Fax No.: (904) 751-7444

Attn: William G. Gotimer, Jr.

		
	Copy to:	  	 Foley & Lardner LLP
 One Independent Drive, Suite
1300
 Jacksonville, Florida 32202-5017
 Fax No.: (904)
359-8700
 Attn: Linda Y. Kelso

		
	If to Mortgagee:	  	 WELLS FARGO BANK, NATIONAL ASSOCIATION
 Corporate
Trust
 Sixth Street and Marquette Avenue
 MACN
9303-120
 Minneapolis, MN 55489
 Fax No.: (612)
667-9825
 Attn: Secunda Administrator

		
	Copy to:	  	 Vinson & Elkins, L.L.P.
 2300 First City
Tower
 1001 Fannin Street
 Houston, TX 77002-6760
 Attn: Anne Newtown

  
 9.2
Remedies Cumulative. The rights and remedies of Mortgagee as provided in this Mortgage or in any other Loan Document shall be cumulative and concurrent, may be pursued separately, successively or together, may be exercised as often as
occasion therefor shall arise, and shall be in addition to any other rights or remedies conferred upon Mortgagee at law or in equity. The failure, at any one or more times, of Mortgagee to assert the right to declare the Liabilities due, grant any
extension of time for payment of the Liabilities, take other or additional security for the payment thereof, release any security, change any of the terms of the Loan Documents, or waive or fail to exercise any right or remedy under any Loan
Document shall not in any way affect this Mortgage or the rights of Mortgagee. 
  
 9.3 No Implied Waiver. Mortgagee shall not be deemed to have modified or waived any of its rights or remedies hereunder
unless such modification or waiver is in writing and signed by Mortgagee, and then only to the extent specifically set forth therein. A waiver in one event shall not be construed as continuing or as a waiver of or bar to such right or remedy on a
subsequent event. 
  
 9.4 Partial
Invalidity. The invalidity or unenforceability of any one or more provisions of this Mortgage shall not render any other provision invalid or unenforceable. In lieu of any invalid or unenforceable provision, there shall be added
automatically a valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible. 
  
 9.5 Binding Effect. The covenants, conditions, waivers, releases and agreements contained in this Mortgage shall bind, and
the benefits thereof shall inure to, the parties hereto and their respective heirs, executors, administrators, successors and assigns and are intended and shall be held to be real covenants running with the land; provided, however, that this
Mortgage cannot be assigned by 

  

 14 

 
Mortgagor without the prior written consent of Mortgagee, and any such assignment or attempted assignment by Mortgagor shall be void and of no effect with
respect to Mortgagee. 
  
 9.6
Modifications. This Mortgage may not be supplemented, extended, modified or terminated except by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification or discharge is sought.

  
 9.7 Commercial Loan. Mortgagor
represents and warrants that the loans or other financial accommodations included as Liabilities secured by this Mortgage were obtained solely for the purpose of carrying on or acquiring a business or commercial investment. 
  
 9.8 Governing Law. This Mortgage shall be
governed by and construed in accordance with the substantive laws of the State of Florida without reference to conflict of laws principles. 
  
 9.9 Non-Merger. In the event Mortgagee shall acquire title to the Property by conveyance from Mortgagor or as a result of
foreclosure, this Mortgage shall not merge in the fee estate of the Property but shall remain and continue as an existing and enforceable lien for the Liabilities secured hereby until the same shall be released of record by Mortgagee in writing.

  
 9.10 Indenture. Mortgagor
acknowledges and agrees that Mortgagee is acting as trustee hereunder for the benefit of the Holders as defined in, and in accordance with the terms of, that certain Indenture dated of even date herewith executed by Mortgagor and Mortgagee (the
“Indenture”), and Mortgagor agrees that, notwithstanding anything herein to the contrary, the terms of the Indenture shall govern. 
  
 9.11 Limitation on Recovery. Notwithstanding anything to the contrary, recovery under this Mortgage is limited to
$10,000,000.00 in the principal amount of the Loan, plus accrued interest thereon, expenses in enforcing the Mortgage, taxes and the amounts paid by Mortgagee to protect or preserve the Property. 
  
 9.12 No Oral Agreements. The written Loan
Documents represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten agreements between the parties. 
  
 9.13 Additional Definitions. As used in
this Mortgage, the following terms have the meanings ascribed to them in this Section 9.13: 
  
 (a) “Designated Equipment” means all of the Mortgagor’s now owned and hereafter acquired equipment, wherever
located, including containers, chassis’, tractors, vehicle transportation modules, machinery, data processing and computer equipment (whether owned or licensed and including embedded software), vehicles, tools, furniture, fixtures, all
attachments, accessions and property now or hereafter affixed thereto or used in connection therewith, and substitutions and replacements thereof, wherever located. 
  
 (b) “Designated Inventory” means all of the Mortgagor’s now owned or hereafter
existing acquired goods, wherever located, which (a) are leased by the Mortgagor as lessor, (b) are held by the Mortgagor for sale or lease or to be furnished under a contract of service, (c) are furnished by the Mortgagor under a contract of
service, or (d) consist of raw materials, work in progress, finished goods or materials used or consumed in a business, provided that the term “Designated Inventory’ shall not include Designated Equipment. 
  
 (c) “Excluded Accounts Receivable” means
all present and future rights of the Mortgagor to payment of a monetary obligation, whether or not earned by performance, which is not 

  

 15 

 
evidenced by chattel paper or an instrument, (a) for Designated Inventory that has been or is to be sold, leased, licensed, assigned or otherwise disposed
of, (b) for services rendered or to be rendered (including services arising from the Mortgagor’s operation or use of any vessel or other Designated Equipment included in the Collateral (as defined in that certain Security Agreement of even date
herewith between Mortgagor and Mortgagee) but excluding amounts due from a third party in respect of the operation or use by a third party of any such vessel or other Designated Equipment pursuant to the lease, charter or other disposition of such
vessel or Designated Equipment), (c) for a secondary obligation relating to Excluded Accounts Receivable incurred or to be incurred, or (d) arising out of the use of a credit card or charge card or information contained on or for use with the card
with respect to the payment of amounts constituting Excluded Accounts Receivable. 
  

 16 

 IN WITNESS WHEREOF, Mortgagor, intending to be legally bound, has duly executed and delivered this
Mortgage and Security Agreement under seal as of the day and year first above written. 
  

									
	 WITNESS:
	 	 	 	MORTGAGOR:
			
	 	 	 	 	TRAILER BRIDGE, INC., a Delaware corporation, successor by merger to Kadampanattu Corp., a Delaware corporation
	 Name:
	 	 	 
	 	 	 	 	 
				
	 WITNESS:
	 	 	 	By:	 	 
	 	 	 	 	 	 	William G. Gotimer, Jr.
	 	 	 	 	 	 	Its Executive Vice President and General Counsel
				
	 	 	 	 	 	 	 
	 Name:
	 	 	 	 	 	 
				
	 STATE OF FLORIDA
	 	 	 	 	 	 
	 COUNTY OF DUVAL
	 	 	 	 	 	 

  
 The foregoing
instrument was acknowledged before me this      day of December, 2004, by William G. Gotimer, Jr., the Executive Vice President and General Counsel, of Trailer Bridge, Inc., a Delaware corporation, successor by merger to
Kadampanattu Corp., a Delaware corporation, on behalf of the corporation. Such person did not take an oath and: (notary must check applicable box) 
  

	 ̈	is personally known to me. 

  

	 ̈	produced a current
                                     driver’s license as
identification. 

  

	 ̈	produced
                                       
                                        
          as identification. 

  

									
	 {Notary Seal must be affixed}
	 	 	 	 
	 	 	 	 	Signature of Notary

  

									
	 	 	 	 	 
	 	 	 	 	 	 	Name of Notary (Typed, Printed or Stamped)
				
	 	 	 	 	 	 	 Commission Number (if not legible
 on seal):                                    
    _________________________

				
	 	 	 	 	 	 	 My Commission Expires (if not
 legible on seal):                           
 _________________________

  

 17 

 SCHEDULE A 
  

DESCRIPTION OF PROPERTY 
  
 PARCEL 1: 
  
 PART OF LOTS 7 AND 8, SUBDIVISION OF DOMINGO FERNANDEZ GRANT, SECTION 38, AND PART OF GOVERNMENT LOT 1, SECTION 14, AND PART OF GOVERNMENT LOT 6, SECTION 13, ALL WITHIN
TOWNSHIP 1 SOUTH, RANGE 27 EAST, DUVAL COUNTY, FLORIDA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: 
  
 COMMENCE AT THE INTERSECTION OF THE CENTERLINE OF HECKSCHER DRIVE (A 100.00 FOOT RIGHT-OF-WAY) AND THE WEST LINE OF SAID SECTION 13; THENCE N 00o 17’ 00” W, 2,570.53 FEET ALONG THE WEST LINE OF SAID
SECTION 13; THENCE N 89o 36’ 44” E, 100.00 FEET; THENCE N 00o 17’ 00” W, 190.00 FEET TO THE POINT OF BEGINNING; THENCE CONTINUE N 00o 17’ 00” W, 190.00 FEET; THENCE S 89o 36’44” W, 1,056.61
FEET TO THE EASTERLY CURVE OF NEW BERLIN ROAD (A 60.00 FOOT RIGHT-OF-WAY), SAID CURVE BEING CONCAVE TO THE SOUTHEAST HAVING A RADIUS OF 2,834.79 FEET; THENCE AROUND AND ALONG SAID CURVE, AN ARC DISTANCE OF 86.89 FEET, THROUGH A CENTRAL ANGLE OF
01o 45’ 22” (CHORD BEARING AND DISTANCE OF S 09o 08’ 03” W, 86.88 FEET); THENCE CONTINUE ALONG THE EASTERLY LINE OF SAID NEW BERLIN ROAD, N 74o 53’ 46” E, 21.80 FEET TO A POINT ON A CURVE CONCAVE TO THE
SOUTHEAST, HAVING A RADIUS OF 2,814.79 FEET, SAID POINT BEING ON THE EASTERLY RIGHT-OF-WAY OF SAID NEW BERLIN ROAD; THENCE AROUND AND ALONG SAID CURVE, AN ARC DISTANCE OF 21.55 FEET, THROUGH A CENTRAL ANGLE OF 00o 26’ 19” (CHORD
BEARING AND DISTANCE OF S 08o 12’ 46” W, 21.55 FEET) TO A POINT ON A CURVE CONCAVE TO THE SOUTHEAST, HAVING A RADIUS OF 768.51 FEET, SAID POINT BEING ON THE EASTERLY RIGHT-OF-WAY OF ACCESS ROAD “E” (A VARIABLE WIDTH
RIGHT-OF-WAY); THENCE AROUND AND ALONG SAID CURVE, AN ARC DISTANCE AT 88.94 FEET, THROUGH A CENTRAL ANGLE OF 06o 37’ 51” (CHORD BEARING AND DISTANCE OF S 04o 40’ 20” W, 88.89 FEET); THENCE N 89o 36’ 44”
E, 1,060.62 FEET TO THE POINT OF BEGINNING. 
  
 PARCEL 2: 
  
 PART OF GOVERNMENT LOT 1, SECTION 14, AND PART OF
GOVERNMENT LOT 6, SECTION 13, TOWNSHIP 1 SOUTH, RANGE 27 EAST, DUVAL COUNTY, FLORIDA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: 
  
 COMMENCE AT THE INTERSECTION OF THE CENTERLINE OF HECKSCHER DRIVE (A 100.00 FOOT RIGHT-OF-WAY) AND THE WEST LINE OF SAID SECTION 13; THENCE N 00o 17’ 00”
W, 2,570.53 FEET ALONG THE WEST LINE OF SAID SECTION 13; THENCE N 89o 36’ 44” E, 100.00 FEET TO THE POINT OF BEGINNING; THENCE N 00o 17’ 00” W, 190.00 FEET; THENCE S 89o 36’44” W, 1,060.62 FEET TO THE
EASTERLY LINE OF ACCESS ROAD “E” (A VARIABLE WIDTH RIGHT-OF-WAY), SAID EASTERLY LINE BEING A CURVE CONCAVE TO THE EAST HAVING A RADIUS OF 768.51 FEET; THENCE AROUND AND ALONG SAID EASTERLY RIGHT-OF-WAY, AN ARC DISTANCE OF 191.34 FEET,
THROUGH A CENTRAL ANGLE OF 14o 15’ 54” (CHORD BEARING AND DISTANCE OF S 05o 46’ 54” E, 190.84 FEET); THENCE N 89o 36’ 44”E, 1,042.33 FEET TO THE POINT OF BEGINNING. 
  
 PARCEL 3: 
  
 THAT CERTAIN PIECE, PARCEL OR TRACT OF LAND SITUATED, LYING AND BEING IN THE CITY OF
JACKSONVILLE, COUNTY OF DUVAL, STATE OF FLORIDA, TO-WIT: 
  

 SURVEY OF PART OF GOVERNMENT LOT 1, SECTION 14, AND PART OF GOVERNMENT LOTS 6 AND 7, SECTION 13, ALL IN TOWNSHIP 1 SOUTH,
RANGE 27 EAST, DUVAL COUNTY, FLORIDA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: 
  
 COMMENCE AT THE INTERSECTION OF THE CENTERLINE OF THE SEABOARD COASTLINE RAILROAD (A 100.0 FOOT RIGHT-OF-WAY) AND THE CENTERLINE OF HECKSCHER DRIVE (A 100.0 FOOT RIGHT-OF-WAY); THENCE ALONG SAID CENTERLINE OF HECKSCHER DRIVE, S 89o
19’ 31” E, 1601.27 FEET TO THE WEST LINE OF SAID SECTION 13, TOWNSHIP 1 SOUTH, RANGE 27 EAST; THENCE ALONG SAID WEST LINE OF SECTION 13, N 0o 17’ 00” W, 404.23 FEET TO THE NORTHERLY LINE OF ACCESS ROAD “E” (A 50.0
FOOT RIGHT-OF-WAY AS NOW ESTABLISHED AS SHOWN ON THE FLORIDA DEPARTMENT OF TRANSPORTATION RIGHT-OF-WAY MAP, SECTION NO. 72002-2806), AND THE POINT OF BEGINNING; THENCE CONTINUE ALONG SAID WEST LINE OF SECTION 13, N 0o 17’ 00” W,
1556.47 FEET TO THE NORTH LINE OF ABSTON DRIVE (A 15.0 FOOT WIDE PRIVATE ROAD); THENCE ALONG SAID NORTH LINE OF ABSTON DRIVE, S 89o 36’ 44” W, 753.66 FEET TO THE NORTHEASTERLY LINE OF SAID ACCESS ROAD “E”; THENCE ALONG SAID
NORTHEASTERLY LINE OF ACCESS ROAD “E”, N 17o 43’ 46” W, 573.13 FEET TO THE POINT OF CURVATURE OF A CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 768.51 FEET; THENCE ALONG SAID NORTHEASTERLY LINE OF ACCESS ROAD “E”
AND AROUND SAID CURVE TO THE RIGHT, AN ARC DISTANCE OF 64.97 FEET, THROUGH A CENTRAL ANGLE OF 4o 50’ 38” (CHORD BEARING AND DISTANCE OF N 15o 18’ 27” W, 64.95) TO A POINT OF INTERSECTION WITH A NON-TANGENT LINE; THENCE
N 89o 36’ 44” E, 1042.33 FEET TO THE WEST LINE OF THOSE LANDS DESCRIBED IN OFFICIAL RECORDS VOLUME 3417, PAGE 1028, DUVAL COUNTY, FLORIDA; THENCE ALONG SAID WEST LINE OF THE LANDS DESCRIBED IN OFFICIAL RECORDS VOLUME 3417, PAGE 1028,
S 0o 17’ 00” E, 2180.83 FEET TO SAID NORTHERLY LINE OF ACCESS ROAD “E”; THENCE ALONG SAID NORTHERLY LINE OF ACCESS ROAD “E”, N 82o 07’ 35” W, 101.02 FEET TO THE POINT OF BEGINNING.

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