<SEC-DOCUMENT>0001157523-12-002231.txt : 20120430
<SEC-HEADER>0001157523-12-002231.hdr.sgml : 20120430
<ACCEPTANCE-DATETIME>20120427193651
ACCESSION NUMBER:		0001157523-12-002231
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20120426
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
ITEM INFORMATION:		Submission of Matters to a Vote of Security Holders
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20120430
DATE AS OF CHANGE:		20120427

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GULF ISLAND FABRICATION INC
		CENTRAL INDEX KEY:			0001031623
		STANDARD INDUSTRIAL CLASSIFICATION:	FABRICATED STRUCTURAL METAL PRODUCTS [3440]
		IRS NUMBER:				721147390
		STATE OF INCORPORATION:			LA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-34279
		FILM NUMBER:		12791507

	BUSINESS ADDRESS:	
		STREET 1:		GULF ISLAND FABRICATION INC
		STREET 2:		583 THOMPSON RD
		CITY:			HOUMA
		STATE:			LA
		ZIP:			70361
		BUSINESS PHONE:		5048722100

	MAIL ADDRESS:	
		STREET 1:		P O BOX 310
		CITY:			HOUMA
		STATE:			LA
		ZIP:			70361
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a50257025.htm
<DESCRIPTION>GULF ISLAND FABRICATION, INC.
<TEXT>
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    <p style="text-align: center">
      <br>
      <font style="font-size: 12pt">UNITED STATES</font><font style="font-size: 12pt"><br style="font-size: 12pt"></font><font style="font-size: 12pt">SECURITIES
      AND EXCHANGE COMMISSION</font><font style="font-size: 12pt"><br style="font-size: 12pt"></font><font style="font-size: 12pt">Washington,
      D.C. 20549</font>
    </p>
    <hr style="height: 1.0 pt; color: #000000; width: 10%; text-align: center">


    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <font style="font-size: 16pt; font-family: Times New Roman"><b>FORM 8-K</b></font><br><br>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>CURRENT
      REPORT</b></font><br><font style="font-size: 12pt">Pursuant to Section
      13 or 15(d) of the Securities Exchange Act of 1934</font>
    </p>
    <hr style="height: 1.0 pt; color: #000000; width: 20%; text-align: center">


    <p style="text-align: center">
      <br>
      <font style="font-size: 12pt; font-family: Times New Roman">Date of
      Report</font><font style="font-size: 12pt; font-family: Times New Roman"><b>
      (</b></font><i><font style="font-size: 12pt; font-family: Times New Roman">Date
      of earliest event reported</font></i><font style="font-size: 12pt; font-family: Times New Roman"><b>)</b></font><font style="font-size: 12pt; font-family: Times New Roman">:
      April 26, 2012</font>
    </p>
    <p style="text-align: center">
      <br>
      <font style="font-size: 16pt"><b>Gulf Island Fabrication, Inc.</b></font><br><i><font style="font-size: 10pt">(Exact
      name of registrant as specified in its charter)</font></i><br><br>
    </p>
<div style="text-align:left">
    <table style="width: 100%; margin-bottom: 10.0px; font-family: Times New Roman; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="text-align: center; width: 33%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Louisiana
          </p>
        </td>
        <td style="text-align: center; white-space: nowrap; width: 34%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            001-34279
          </p>
        </td>
        <td style="text-align: center; white-space: nowrap; width: 33%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            72-1147390
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; width: 33%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>(State of incorporation)</i>
          </p>
        </td>
        <td style="text-align: center; width: 34%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>(Commission File Number)</i>
          </p>
        </td>
        <td style="text-align: center; width: 33%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>(IRS Employer Identification No.)</i>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="text-align:center">
    <table style="width: 100%; margin-left:auto;margin-right:auto; margin-bottom: 10.0px; font-family: Times New Roman; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="text-align: left; width: 15%; padding-left: 0.0px" valign="top">
          &#160;
        </td>
        <td style="text-align: center; width: 40%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            567 Thompson Road, Houma, Louisiana
          </p>
        </td>
        <td style="text-align: left; width: 10%; padding-left: 0.0px" valign="top">
          &#160;
        </td>
        <td style="text-align: center; white-space: nowrap; width: 20%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            70363
          </p>
        </td>
        <td style="width: 15%">

        </td>
      </tr>
      <tr>
        <td style="width: 15%">

        </td>
        <td style="text-align: center; width: 40%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>(Address of principal executive offices)</i>
          </p>
        </td>
        <td style="width: 10%">

        </td>
        <td style="text-align: center; width: 20%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>(Zip Code)</i>
          </p>
        </td>
        <td style="width: 15%">

        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      (985) 872-2100<br><i>(Registrant's telephone number, including area code)</i><br><br>N/A<br><i>(Former
      name or former address, if changed since last report)</i>
    </p>
    <p style="text-align: center">
      <br>

    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions </font>(see General Instruction A.2. below):
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <b>Item 5.02 Departure of Directors or Certain Officers; Election of
      Directors; Appointment of Certain Officers; Compensatory Arrangements of
      Certain Officers.</b>
    </p>
    <p style="text-indent: 30.0px; font-family: Times New Roman; font-size: 10pt">
      On April 26, 2012, Gulf Island Fabrication, Inc. (the Company) appointed
      Roy F. &#8220;Buddy&#8221; Breerwood, III, 38, as Vice President-Finance, Chief
      Financial Officer and Treasurer of the Company.&#160;&#160;Mr. Breerwood
      previously served as interim Chief Financial Officer and Treasurer since
      February 2, 2012 and Controller since October 2007.&#160;&#160;Prior to his
      appointment as Controller, Mr. Breerwood served as the Company&#8217;s
      Accounting Manager from July 2002 to October 2007.
    </p>
    <p style="text-indent: 30.0px; font-family: Times New Roman; font-size: 10pt">
      In connection with his appointment, Mr. Breerwood&#8217;s base salary was
      increased to $175,000 and he received a grant of 1,000 shares of
      restricted stock, vesting in equal installments over a five-year
      period.&#160;&#160;Mr. Breerwood is also eligible for an annual bonus under our
      annual incentive compensation program equal to 0.25% of the Company&#8217;s
      consolidated income before taxes and deduction of executive bonuses
      under the program.&#160;&#160;
    </p>
    <p style="text-indent: 30.0px; font-family: Times New Roman; font-size: 10pt">
      Following his appointment, the Company entered into a change of control
      agreement (the Agreement) with Mr. Breerwood.&#160;&#160;The Agreement entitles
      Mr. Breerwood to receive additional benefits in the event of a
      termination of employment under certain circumstances following a change
      of control of the Company, as described below. The Agreement provides
      that if, during the 18 months following a change of control, the Company
      or its successor terminates Mr. Breerwood other than by reason of death,
      disability or cause (as defined in the Agreement), or Mr. Breerwood
      voluntarily terminates his employment for good reason (as defined in the
      Agreement), Mr. Breerwood will receive a lump-sum cash payment equal to
      the sum of his prorated bonus plus one and one half times the sum of (a)
      his base salary in effect at the time of termination and (b) the highest
      annual bonus awarded to him during the three fiscal years immediately
      preceding the termination date. The Company shall continue to provide to
      Mr. Breerwood insurance and welfare benefits until the earlier of (a)
      December 31 of the first calendar year following the calendar year of
      the termination or (b) the date Mr. Breerwood accepts new employment.
      The benefits provided under the Agreement are in addition to the value
      of any accelerated vesting of shares of restricted stock or stock
      options resulting from a change of control under the Company&#8217;s stock
      incentive plans. If any part of the payments or benefits received by Mr.
      Breerwood in connection with a termination following a change of control
      constitutes an excess parachute payment under Section 4999 of the
      Internal Revenue Code, Mr. Breerwood will receive the greater of (1) the
      amount of such payments and benefits reduced so that none of the amount
      constitutes an excess parachute payment, net of income taxes, or (2) the
      amount of such payments and benefits, net of income taxes and net of
      excise taxes under Section 4999 of the Internal Revenue Code. A copy of
      the Agreement is attached hereto as Exhibit 99.1.
    </p>
    <p>
      <b>Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change
      in Fiscal Year.</b>
    </p>
    <p style="text-indent: 30.0px; font-family: Times New Roman; font-size: 10pt">
      Effective April 26, 2012, the Board of Directors of the Company approved
      an amendment to the By-laws of the Company to allow for the number of
      directors constituting the entire Board of Directors to be a range of
      not less than three nor more than twelve, with the exact number of
      directors to be fixed by a duly adopted resolution of the Board of
      Directors. A copy of the By-laws as amended and restated is attached as
      Exhibit 3.1 to this Current Report on Form 8-K.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <b>Item 5.07 Submission of Matters to a Vote of Security Holders.</b>
    </p>
    <p style="text-indent: 30.0px; font-family: Times New Roman; font-size: 10pt">
      The Company held its 2012 annual meeting of shareholders (the Annual
      Meeting) on April 26, 2012 in Houma, Louisiana. At the Annual Meeting,
      the Company&#8217;s shareholders (i)&#160;elected each of the two persons listed
      below to serve as a Class III director for a term expiring in 2015, (ii)
      approved, on an advisory basis, the compensation of the Company&#8217;s named
      executive officers and (iii) ratified the appointment of the Company&#8217;s
      independent registered public accounting firm for the 2012 fiscal year.
    </p>
    <p style="text-indent: 30.0px; font-family: Times New Roman; font-size: 10pt">
      Of the 14,385,039 shares of the Company&#8217;s common stock outstanding as of
      the record date, 12,597,077 shares were represented at the Annual
      Meeting.&#160;&#160;The Company&#8217;s independent inspector of elections reported the
      vote of stockholders as follows:
    </p>
    <p style="white-space: nowrap">
      <i><b>Proposal 1:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Election of two Class III directors.</b></i>&#160;&#160;<br><br>
    </p>
<div style="text-align:left">
    <table style="width: 100%; margin-bottom: 10.0px; font-family: Times New Roman; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="text-align: left; width: 32%; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Name
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="text-align: center; width: 32%; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          Votes For
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="text-align: center; width: 32%; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          Votes Withheld
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 32%; padding-left: 0.0px" valign="top">
          Kerry J. Chauvin
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: center; white-space: nowrap; width: 32%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          9,476,542
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: center; white-space: nowrap; width: 32%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          2,235,440
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 32%; padding-left: 0.0px" valign="top">
          Jerry D. Dumas, Sr.
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: center; white-space: nowrap; width: 32%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            11,648,695
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: center; white-space: nowrap; width: 32%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          63,287
        </td>
      </tr>
    </table>
    </div>
    <p style="white-space: nowrap">
      <i><b>Proposal 2:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Approval, on an advisory basis, of the
      compensation of the Company&#8217;s named executive officers.</b></i><br><br>
    </p>
<div style="text-align:left">
    <table style="width: 100%; margin-bottom: 10.0px; font-family: Times New Roman; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="text-align: center; width: 25%; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          Votes For
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="text-align: center; width: 23%; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          Votes Against
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="text-align: center; width: 23%; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          Abstentions
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="text-align: center; width: 23%; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          Broker Non-Votes
        </td>
      </tr>
      <tr>
        <td style="text-align: center; white-space: nowrap; width: 25%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            10,970,655
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: center; white-space: nowrap; width: 23%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          137,840
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: center; white-space: nowrap; width: 23%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          603,488
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: center; white-space: nowrap; width: 23%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          885,094
        </td>
      </tr>
    </table>
    </div>
    <p>
      <i><b>Proposal 3:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Ratification of the appointment of Ernst &amp;
      Young LLP as the Company&#8217;s independent registered public accounting firm.</b></i><br><br>
    </p>
<div style="text-align:left">
    <table style="width: 100%; margin-bottom: 10.0px; font-family: Times New Roman; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="text-align: center; width: 32%; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          Votes For
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="text-align: center; width: 32%; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          Votes Against
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="text-align: center; width: 32%; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          Abstentions
        </td>
      </tr>
      <tr>
        <td style="text-align: center; white-space: nowrap; width: 32%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            12,518,883
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: center; white-space: nowrap; width: 32%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          76,444
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: center; white-space: nowrap; width: 32%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          1,750
        </td>
      </tr>
    </table>
    </div>
    <p>
      <b>Item 8.01 Other Matters.</b>
    </p>
    <p style="text-indent: 30.0px; font-family: Times New Roman; font-size: 10pt">
      On April 26, 2012, the Board of Directors of the Company approved
      resolutions reducing the size of the Board of Directors from nine to
      eight members effective at the time of the Company&#8217;s Annual Meeting upon
      the retirement of Alden J. &#8220;Doc&#8221; Laborde.&#160;&#160;Mr. Laborde, co-founder of
      the Company, whose term expired at the Annual Meeting, did not stand for
      re-election at the Annual Meeting.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-indent: 30.0px; font-family: Times New Roman; font-size: 10pt">
      In honor of his position as co-founder of the Company and his service on
      the Board of Directors for over 25 years, the Board of Directors
      appointed Mr. Laborde as a director emeritus effective at the time that
      his term as a director expired at the Annual Meeting.
    </p>
    <p>
      <b>Item 9.01 Financial Statements and Exhibits</b>
    </p>
    <p style="white-space: nowrap; text-indent: 30.0px">
      (d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exhibits
    </p>
    <p style="text-indent: 30.0px; font-family: Times New Roman; font-size: 10pt">
      The following exhibits are filed herewith.
    </p>
<div style="text-align:left">
    <table style="width: 100%; margin-bottom: 10.0px; font-family: Times New Roman; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="text-align: left; width: 14%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Exhibit</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>Number</b></u>
          </p>
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="text-align: left; width: 84%; padding-left: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>Description</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 14%">

        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 84%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; white-space: nowrap; width: 14%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            3.1
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: left; width: 84%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            By-laws of the Company, as amended and restated through April 26,
            2012.
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 14%">

        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 84%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; white-space: nowrap; width: 14%; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            99.1
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: left; width: 84%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Change of Control Agreement dated April 27, 2012 by and between
            the Company and Roy F. Breerwood, III
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <b>SIGNATURES</b><br>
    </p>
    <p style="text-indent: 30.0px">
      <font style="font-size: 10pt; font-family: Times New Roman">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the registrant
      has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <p style="text-indent: 30.0px">
      <br>

    </p>
<div style="text-align:left">
    <table style="width: 100%; margin-bottom: 10.0px; font-family: Times New Roman; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 39%">

        </td>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>GULF ISLAND FABRICATION, INC.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 39%">

        </td>
        <td style="width: 4%">

        </td>
        <td style="text-align: left; width: 51%; padding-left: 0.0px" valign="top">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 6%; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="text-align: left; width: 39%; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="text-align: left; width: 4%; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          By:
        </td>
        <td style="text-align: center; width: 51%; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Kerry J. Chauvin
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 39%">

        </td>
        <td style="width: 4%">

        </td>
        <td style="text-align: center; width: 51%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Kerry J. Chauvin
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 39%">

        </td>
        <td style="width: 4%">

        </td>
        <td style="text-align: center; width: 51%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Chairman of the Board and Chief Executive Officer
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 39%">

        </td>
        <td style="width: 4%">

        </td>
        <td style="text-align: left; width: 51%; padding-left: 0.0px" valign="top">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 39%">

        </td>
        <td style="width: 4%">

        </td>
        <td style="text-align: left; width: 51%; padding-left: 0.0px" valign="top">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 6%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Dated:
          </p>
        </td>
        <td style="text-align: left; width: 39%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            April 27, 2012
          </p>
        </td>
        <td style="width: 4%">

        </td>
        <td style="width: 51%">

        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
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<DOCUMENT>
<TYPE>EX-3.1
<SEQUENCE>2
<FILENAME>a50257025ex3_1.htm
<DESCRIPTION>EXHIBIT 3.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2012 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-family: Times New Roman; font-size: 8pt">
    <p style="text-align: right">
      <b>Exhibit 3.1</b>
    </p>
    <p style="text-align: center">
      <b>BY-LAWS</b><br><b>OF</b><br><b>GULF ISLAND FABRICATION, INC.</b><br><b>(As
      Amended and Restated through April 26, 2012)</b>
    </p>
    <p style="text-align: justify">
      <b>SECTION 1</b>&#160;&#160;<br><br><b>OFFICERS</b>
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>1.1</b>&#160;&#160;<b>Principal Office.</b>&#160;&#160;The
      principal office of the Corporation shall be located at 567 Thompson
      Road, Houma, Louisiana 70363.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>1.2</b>&#160;&#160;<b>Additional Offices.</b>&#160;&#160;The
      Corporation may have such offices at such other places as the Board of
      Directors may from time to time determine or the business of the
      Corporation may require.
    </p>
    <p style="text-align: justify">
      <br>
      <b>SECTION 2&#160;&#160;<br><br>SHAREHOLDER MEETINGS</b>
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>2.1</b>&#160;&#160;<b>Place of Meetings.</b>&#160;&#160;Unless
      otherwise required by law or these By-laws, all meetings of the
      shareholders shall be held at the principal office of the Corporation or
      at such other place, within or without the State of Louisiana, as may be
      designated by the Board of Directors.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>2.2</b>&#160;&#160;<b>Annual Meetings; Notice
      Thereof.</b>&#160;&#160;An annual meeting of the shareholders shall be held each
      year on the date and at the time as the Board of Directors shall
      designate, for the purpose of electing directors and of the transaction
      of such other business as may be properly brought before the
      meeting.&#160;&#160;If no annual shareholders&#8217; meeting is held for a period of
      eighteen months, any shareholder may call such meeting to be held at the
      registered office of the Corporation as shown on the records of the
      Secretary of State of the State of Louisiana.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>2.3</b>&#160;&#160;<b>Special Meetings.</b>&#160;&#160;Special
      meetings of the shareholders, for any purpose or purposes, may be called
      by or at the direction of the Board of Directors.&#160;&#160;Shareholders may call
      a special meeting of shareholders in accordance with the applicable
      provisions of the Articles of Incorporation.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;<b>2.4</b>&#160;&#160;<b>Notice of Meetings.</b>&#160;&#160;Except as
      otherwise provided by law or the Articles of Incorporation, the
      authorized person or persons calling a shareholders&#8217; meeting shall cause
      written notice of the time, place and purpose of the meeting to be given
      to all shareholders entitled to vote at such meeting, at least 10 days
      and not more than 75 days prior to the day fixed for the
      meeting.&#160;&#160;Notice of the annual meeting need not state the purpose or
      purposes thereof, unless action is to be taken at the meeting as to
      which notice is required by law or the By-laws.&#160;&#160;Notice of a special
      meeting shall state the purpose or purposes thereof, and the business
      conducted at any special meeting shall be limited to the purpose or
      purposes stated in the notice.
    </p>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify; text-indent: 60.0px">

    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>2.5</b>&#160;&#160;<b>List of Shareholders.</b>&#160;&#160;At
      every meeting of shareholders, a list of shareholders entitled to vote,
      arranged alphabetically and certified by the Secretary or by the agent
      of the Corporation having charge of transfers of shares, showing the
      number and class of shares held by each such shareholder on the record
      date for the meeting and confirming the number of votes per share as to
      which each such shareholder is entitled, shall be produced on the
      request of any shareholder.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>2.6</b>&#160;&#160;<b>Quorum.</b>&#160;&#160;At all meetings
      of shareholders, the holders of a majority of the total voting power
      shall constitute a quorum; provided, however, that this subsection shall
      not have the effect of reducing the vote required to approve any matter
      that may be established by law, the Articles of Incorporation or these
      By-laws.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>2.7</b>&#160;&#160;<b>Voting.</b>&#160;&#160;When a quorum is
      present at any shareholders&#8217; meeting, the vote of the holders of a
      majority of the votes actually cast shall decide each question brought
      before such meeting, unless the resolution of the question requires, by
      express provision of law, the Articles of Incorporation or these
      By-laws, a different vote or one or more separate votes by the holders
      of a class or series of capital stock, in which case such express
      provision shall apply and control the decision of such
      question.&#160;&#160;Directors shall be elected by plurality vote.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>2.8</b>&#160;&#160;<b>Proxies.</b>&#160;&#160;At any meeting
      of the shareholders, every shareholder having the right to vote shall be
      entitled to vote in person or by proxy appointed by an instrument in
      writing executed by such shareholder and bearing a date not more than
      eleven months prior to the meeting, unless the instrument provides for a
      longer period, but in no case will an outstanding proxy be valid for
      longer than three years from the date of its execution.&#160;&#160;The person
      appointed as proxy need not be a shareholder of the Corporation.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>2.9</b>&#160;&#160;<b>Adjournments.</b>&#160;&#160;Adjournments
      of any annual or special meeting of shareholders may be taken without
      new notice being given unless a new record date is fixed for the
      adjourned meeting, but any meeting at which directors are to be elected
      shall be adjourned only from day to day until such directors shall have
      been elected.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;<b>2.10</b>&#160;&#160;<b>Withdrawal.</b>&#160;&#160;If a quorum is
      present or represented at a duly organized shareholders&#8217; meeting, such
      meeting may continue to do business until adjournment, notwithstanding
      the withdrawal of enough shareholders to leave less than a quorum as
      fixed in Section 2.6 of these By-laws, or the refusal of any
      shareholders to vote.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;<b>2.11</b>&#160;&#160;<b>Lack of Quorum.</b>&#160;&#160;If a meeting
      cannot be organized because a quorum has not attended, those present may
      adjourn the meeting to such time and place as they may determine,
      subject, however, to the provisions of Section 2.9 hereof.&#160;&#160;In the case
      of any meeting called for the election of directors, those who attend
      the second of such adjourned meetings, although less than a quorum as
      fixed in Section 2.6 hereof, shall nevertheless be deemed to constitute
      a quorum for the purpose of electing directors.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;<b>2.12</b>&#160;&#160;<b>Presiding Officer.</b>&#160;&#160;The
      Chairman of the Board or a person designated by the Chairman of the
      Board, or in their absence a person designated by the Board of
      Directors, shall preside at all shareholders&#8217; meetings.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;<b>2.13</b>&#160;&#160;<b>Definition of Shareholder.</b>&#160;&#160;As
      used in these By-laws, and unless the context otherwise requires, the
      term shareholder shall mean a person who is (i) the record holder of
      shares of the Corporation&#8217;s common stock or any other capital stock of
      the Corporation granted voting rights, or (ii) a registered holder of
      any bonds, debentures or similar obligations granted voting rights by
      the Corporation pursuant to La.R.S. 12:75H.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center; font-family: Times New Roman; font-size: 8pt">
          2
        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify">

    </p>
    <p style="text-align: justify">
      <b>SECTION 3&#160;&#160;<br><br>DIRECTORS</b>
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>3.1</b>&#160;&#160;<b>Number.</b>&#160;&#160;All of the
      corporate powers shall be vested in, and the business and affairs of the
      Corporation shall be managed by, a Board of Directors.&#160;&#160;Except as
      otherwise fixed by or pursuant to Article III(B) of the Articles of
      Incorporation (as it may be duly amended from time to time) relating to
      the rights of the holders of any class or series of stock having a
      preference over the Common Stock as to dividends or upon liquidation to
      elect additional directors by class vote, the number of directors
      constituting the entire Board of Directors shall be not less than three
      nor more than twelve, the exact number of directors to be fixed from
      time to time within such range by a duly adopted resolution of the Board
      of Directors.&#160;&#160;No director need be a shareholder.&#160;&#160;The Secretary shall
      have the power to certify at any time as to the number of directors
      authorized and as to the class to which each director has been elected
      or assigned.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>3.2</b>&#160;&#160;<b>Powers.</b>&#160;&#160;The Board may
      exercise all such powers of the Corporation and do all such lawful acts
      and things which are not by law, the Articles of Incorporation or these
      By-laws directed or required to be done by the shareholders.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>3.3</b>&#160;&#160;<b>Classes.</b>&#160;&#160;The Board of
      Directors, other than those directors who may be elected by the holders
      of any class or series of stock having preference over the Common Stock
      as to dividends or upon liquidation (whose term of office may be
      determined by the Board of Directors pursuant to Section 3.3), shall be
      divided, with respect to the time during which they shall hold office,
      into three classes as nearly equal in number as possible, with the
      initial term of office of Class I directors expiring at the annual
      meeting of shareholders to be held in 1998, of Class II Directors
      expiring at the next succeeding annual meeting of shareholders and of
      Class III directors expiring at the second succeeding annual meeting of
      shareholders, with all such directors to hold office until their
      successors are elected and qualified.&#160;&#160;At each annual meeting of
      shareholders, directors chosen to succeed those whose terms then expire
      shall be elected to hold office for a term expiring at the annual
      meeting of shareholder held in the third year following the year of
      their election and until their successors are duly elected and
      qualified.&#160;&#160;If the Board of Directors shall appoint any director to fill
      a vacancy on the Board, whether resulting from an increase in the number
      of directors or otherwise, or if the shareholders shall elect a director
      to fill an open seat not previously assigned to a class, such Director
      shall be assigned to a class by the Board of Directors so that all
      classes of directors shall be as nearly equal in number as possible, and
      such Director&#8217;s term shall expire at the succeeding annual meeting at
      which the terms of the other Directors in that class expire.&#160;&#160;In the
      event of a decrease in the number of directors, the Board of Directors
      may reassign the remaining directors to classes so that all classes of
      directors shall be as nearly equal in number as possible.&#160;&#160;
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>3.4</b>&#160;&#160;<b>General Election.</b>&#160;&#160;At
      each annual meeting of shareholders, directors shall be elected to
      succeed those directors whose terms then expire.&#160;&#160;No decrease in the
      number of directors constituting the Board of Directors shall shorten
      the term of any incumbent director.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center; font-family: Times New Roman; font-size: 8pt">
          3
        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify; text-indent: 60.0px">

    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>3.5</b>&#160;&#160;<b>Vacancies.</b>&#160;&#160;Except as
      otherwise provided in the Articles of Incorporation or these By-laws,
      the office of a director shall become vacant if he dies, resigns or is
      duly removed from office.&#160;&#160;
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>3.6</b>&#160;&#160;<b>Filling Vacancies.</b>&#160;&#160;Except
      as otherwise provided in the Articles of Incorporation or Section 3.8 of
      these By-laws, any vacancy on the board (including any vacancy resulting
      from an increase in the authorized number of directors or from failure
      of the shareholders to elect the full number of authorized directors)
      may, notwithstanding any resulting absence of a quorum of directors, be
      filled by a majority vote of the Board of Directors remaining in office,
      provided that the shareholder shall have the right, at any special
      meeting called for such purpose prior to such action by the Board, to
      fill the vacancy.&#160;&#160;A director elected pursuant to this section shall
      serve until the next shareholders&#8217; meeting held for the election of
      directors of the class to which he shall have been appointed and until
      his successor is elected and qualified.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>3.7</b>&#160;&#160;<b>Notice of Shareholder
      Nominees.</b>&#160;&#160;Except as otherwise provided in Section 3.8 of these
      By-laws, only persons who are nominated in accordance with the
      procedures set forth in Article IV(E) of the Articles of Incorporation
      shall be eligible for election as directors.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>3.8</b>&#160;&#160;<b>Directors Elected by
      Preferred Shareholders.</b>&#160;&#160;Notwithstanding anything in these By-laws
      to the contrary, whenever the holders of any one or more classes or
      series of stock having a preference over the Common Stock as to
      dividends or upon liquidation shall have the right, voting separately as
      a class, to elect one or more directors of the Corporation, the
      provisions of the Articles of Incorporation (as they may be duly amended
      from time to time) fixing the rights and preferences of such preferred
      stock shall govern with respect to the nomination, election, term,
      removal, vacancies or other related matters with respect to such
      directors.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>3.9</b>&#160;&#160;<b>Compensation of Directors.</b>&#160;&#160;Directors
      shall receive such compensation for their services, in their capacity as
      directors, as may be fixed by resolution of the Board of Directors;
      provided, however, that nothing herein contained shall be construed to
      preclude any director from serving the Corporation in any other capacity
      and receiving compensation therefor.
    </p>
    <p style="text-align: justify">
      <br>
      <b>SECTION 4&#160;&#160;<br><br>MEETINGS OF THE BOARD</b>
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>4.1</b>&#160;&#160;<b>Place of Meetings.</b>&#160;&#160;The
      meetings of the Board of Directors may be held at such place within or
      without the State of Louisiana as a majority of the directors may from
      time to time appoint.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>4.2</b>&#160;&#160;<b>Initial Meetings.</b>&#160;&#160;Except
      as otherwise determined by the Board of Directors, the first meeting of
      each newly-elected Board shall be held immediately following the
      shareholders&#8217; meeting at which the Board, or any class thereof, is
      elected and at the same place as such meeting, and no notice of such
      first meeting shall be necessary for the newly-elected directors in
      order legally to constitute the meeting.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>4.3</b>&#160;&#160;<b>Regular Meetings; Notice.</b>&#160;&#160;Regular
      meetings of the Board may be held at such times as the Board may form
      time to time determine.&#160;&#160;Notice of regular meetings of the Board of
      Directors shall be given, but no special form of notice or time of
      notice shall be necessary.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
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        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify; text-indent: 60.0px">

    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;<b>4.4</b>&#160;&#160;<b>Special Meetings; Notice.</b>&#160;&#160;Special
      meetings of the Board may be called by or at the direction of the
      Chairman of the Board or the President on reasonable notice given to
      each director, either personally or by telephone, mail, telex, telecopy
      or any other comparable form of facsimile communication.&#160;&#160;Special
      meetings shall be called by the Secretary in like manner and on like
      notice on the written request of a majority of the directors and if such
      officer fails or refuses, or is unable within 24 hours to call a meeting
      when requested, then the directors making the request may call the
      meeting on two days&#8217; written notice given to each director.&#160;&#160;The notice
      of a special meeting of directors need not state it purpose or purposes,
      but if the notice states a purpose or purposes and does not state a
      further purpose to consider such other business as may properly come
      before the meeting, the business to be conducted at the special meeting
      shall be limited to the purpose or purposes stated in the notice.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>4.5</b>&#160;&#160;<b>Waiver of Notice.</b>&#160;&#160;Directors
      present at any regular or special meeting shall be deemed to have
      received, or to have waived, due notice thereof, provided that a
      director who participates in a meeting by telephone (as permitted by
      Section 4.9 hereof) shall not be deemed to have received or waived due
      notice if, at the beginning of the meeting, he objects to the
      transaction of any business because the meeting is not lawfully called.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>4.6</b>&#160;&#160;<b>Quorum.</b>&#160;&#160;A majority of
      the Board shall be necessary to constitute a quorum for the transaction
      of business, and except as otherwise provided by law, the Articles of
      Incorporation or these By-laws, the acts of a majority of the directors
      present at a duly-called meeting at which a quorum is present shall be
      the acts of the board.&#160;&#160;If a quorum is not present at any meeting of the
      Board of Directors, the directors present may adjourn the meeting from
      time to time without notice other than announcement at the meeting,
      until a quorum is present.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>4.7</b>&#160;&#160;<b>Withdrawal.</b>&#160;&#160;If a quorum
      was present when the meeting convened, the directors present may
      continue to do business, taking action by vote of a majority of a quorum
      as fixed in Section 4.6 hereof, until adjournment, notwithstanding the
      withdrawal of enough directors to leave less than a quorum as fixed in
      Section 4.6 hereof or the refusal of any director present to vote.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>4.8</b>&#160;&#160;<b>Action by Consent.</b>&#160;&#160;Any
      action that may be taken at a meeting of the Board, or any committee
      thereof, may be taken by a consent in writing signed by all of the
      directors or by all members of the committee, as the case may be, and
      filed with the records of proceedings of the Board or committee.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>4.9</b>&#160;&#160;<b>Meetings by Telephone or
      Similar Communication.</b>&#160;&#160;Members of the Board may participate at and
      be present at any meeting of the Board or any committee thereof by means
      of conference telephone or similar communications equipment if all
      persons participating in such meeting can hear and communicate with each
      other.
    </p>
    <p style="text-align: justify">
      <br>
      <b>SECTION 5&#160;&#160;<br><br>COMMITTEES OF THE BOARD</b>
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>5.1</b>&#160;&#160;<b>General.</b>&#160;&#160;The Board may
      designate one or more committees, each committee to consist of two or
      more of the directors of the Corporation (and one or more directors may
      be named as alternate members to replace any absent or disqualified
      regular members), which, to the extent provided by resolution of the
      Board or these By-laws, shall have and may exercise the powers of the
      Board in the management of the business and affairs of the Corporation,
      and may have power to authorize the seal of the Corporation to be
      affixed to documents, but no such committee shall have power or
      authority to amend the Articles of Incorporation, adopt an agreement of
      merger, consolidation or share exchange, adopt or recommend to the
      shareholders the sale, lease or exchange of all or substantially all of
      the Corporation&#8217;s assets, recommend to the shareholders a dissolution of
      the Corporation or a revocation of dissolution, remove directors, or
      amend these By-laws; and unless the resolution expressly so provides, no
      such committee shall have the power or authority to declare a dividend
      or authorize the issuance of stock.&#160;&#160;Such committee or committees shall
      have such name or names as may be stated in these By-laws, or as may be
      determined, from time to time, by the Board.&#160;&#160;Any vacancy occurring in
      any such committee shall be filled by the Board, but the President may
      designate another director to serve on the committee pending action by
      the Board.&#160;&#160;Each such member of a committee shall hold office during the
      term designated by the Board.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
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        <div style="text-align: left">

        </div>
      </div>
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          5
        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify; text-indent: 60.0px">

    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>5.2</b>&#160;&#160;<b>Compensation Committee.</b>&#160;&#160;The
      Board shall establish and maintain a Compensation Committee consisting
      of two or more directors, each of whom (i) shall be qualified to the
      extent appropriate as a &#8220;non-employee director&#8221; under Rule 16b-3 of the
      Securities Exchange Commission and as an &#8220;outside director&#8221; under
      Section 162(m) of the Internal Revenue Code and (ii) shall meet any
      further qualifications designated by the Board.&#160;&#160;The Compensation
      Committee shall review and analyze the compensation of the Corporation&#8217;s
      executive officers; review and provide general guidance as to
      compensation of the Corporation&#8217;s other managers; evaluate the
      performance of the Corporation&#8217;s executive officers; administer the
      Corporation&#8217;s Long-Term Incentive Compensation Plan, including grants
      thereunder; and perform such other services as may be designated by the
      Board.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>5.3</b>&#160;&#160;<b>Audit Committee.</b>&#160;&#160;The
      Board shall establish an Audit Committee consisting of at least two
      directors, a majority of whom are not officers or employees of the
      Corporation or any of its affiliates.&#160;&#160;The Audit Committee shall (i)
      facilitate communication among the Corporation&#8217;s directors, management,
      independent accountants and internal auditing personnel regarding
      matters relating to financial accounting, reporting and controls, (ii)
      assist the Board of Directors in fulfilling its fiduciary
      responsibilities as to accounting policies and reporting practices of
      the Corporation and all subsidiaries and the sufficiency of auditing
      practices with respect thereto by, among other things, reviewing the
      scope of audit coverage, including consideration of the Corporation&#8217;s
      accounting practices and procedures and system of internal accounting
      controls and reporting to the Board with respect thereto, (iii) operate
      as the Board&#8217;s principal agent in ensuring the independence of the
      Corporation&#8217;s independent accountants, the integrity of management and
      the adequacy of disclosure to shareholders, and (iv) perform such other
      services as may be designated by the Board.
    </p>
    <p style="text-align: justify">
      <b>SECTION 6&#160;&#160;<br><br>REMOVAL OF BOARD MEMBERS</b>
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      Directors may be removed in accordance with the applicable provisions of
      the Articles of Incorporation.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
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          6
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        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify">

    </p>
    <p style="text-align: justify">
      <b>SECTION 7&#160;&#160;<br><br>NOTICES</b>
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>7.1</b>&#160;&#160;<b>Form of Delivery.</b>&#160;&#160;Whenever
      under the provisions of law, the Articles of Incorporation or these
      By-laws notice is required to be given to any shareholder or director,
      it shall not be construed to mean personal notice unless otherwise
      specifically provided in the Articles of Incorporation or these By-laws,
      but such notice may be given by mail, addressed to such shareholder or
      director at his address as it appears on the records of the Corporation,
      with postage thereon prepaid, or in such other manner as may be
      specified in these By-laws.&#160;&#160;Notices given by mail shall be deemed to
      have been given at the time they are deposited in the United States
      mail, and all other notices shall be deemed to have been give upon
      receipt.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>7.2</b>&#160;&#160;<b>Waiver.</b>&#160;&#160;Whenever any
      notice is required to be given by law, the Articles of Incorporation or
      these By-laws, a waiver thereof in writing signed by the person or
      persons entitled to such notice, whether before or after the time stated
      therein, shall be deemed equivalent thereto.&#160;&#160;In addition, notice shall
      be deemed to have been given to, or waived by, any shareholder or
      director who attends a meeting of shareholders or directors in person,
      or is represented at such meeting by proxy, without protesting at the
      commencement of the meeting the transaction of any business because the
      meeting is not lawfully called or convened.
    </p>
    <p style="text-align: justify">
      <b>SECTION 8&#160;&#160;<br><br>OFFICERS</b>
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>8.1</b>&#160;&#160;<b>Designations.</b>&#160;&#160;The
      officers of the Corporation shall be elected by the directors and shall
      be the President, Secretary and Treasurer.&#160;&#160;The Board of Directors may
      appoint a Chief Executive Officer, a Chief Operating Officer, a Chief
      Accounting Officer, one or more Vice Presidents and such other officers
      as it shall deem necessary.&#160;&#160;Officers shall hold their offices for such
      terms and shall exercise such powers and perform such duties as shall be
      determined from time to time by the Board.&#160;&#160;To the extent permitted by
      law, more than one office may be held by a single person.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>8.2</b>&#160;&#160;<b>Term of Office.</b>&#160;&#160;The
      officers of the Corporation shall hold office at the pleasure of the
      Board of Directors.&#160;&#160;Except as otherwise provided in the resolution of
      the Board of Directors electing any officer, each officer shall hold
      office until the first meeting of the Board of Directors after the
      annual meeting of shareholders next succeeding his or her election, and
      until his or her successor is elected and qualified or until his or her
      earlier resignation or removal.&#160;&#160;Any officer may resign at any time upon
      written notice to the Board, Chairman of the Board, President or
      Secretary of the Corporation.&#160;&#160;Such resignation shall take effect at the
      time specified therein and acceptance of such resignation shall not be
      necessary to make it effective.&#160;&#160;The Board may remove any officer with
      or without cause at any time.&#160;&#160;Any such removal shall be without
      prejudice to the contractual rights of such officers, if any, with the
      Corporation, but the election of an officer shall not in and of itself
      create contractual rights.&#160;&#160;Any vacancy occurring in any office of the
      Corporation by death, resignation, removal or otherwise may be filled
      for the unexpired position of the term by the Board at any regular or
      special meeting.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>8.3</b>&#160;&#160;<b>The Chairman of the Board.</b>&#160;&#160;The
      Board may appoint a Chairman of the Board who shall preside at meetings
      of the Board of Directors and the shareholders and perform such other
      duties as may be designated by the Board of Directors or these
      By-laws.&#160;&#160;The Chairman of the Board shall not, solely by virtue of such
      position, be an officer of the Corporation but may be designated an
      officer by the Board of Directors.
    </p>
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        </div>
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        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify; text-indent: 60.0px">

    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>8.4</b>&#160;&#160;<b>The President.</b>&#160;&#160;The
      President shall, unless otherwise provided by the Board, have general
      and active responsibility for the management of the business of the
      Corporation, shall be the chief executive and chief operating officer of
      the Corporation, shall supervise the daily operations of the business of
      the Corporation and shall ensure that all orders, policies and
      resolutions of the Board are carried out.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>8.5</b>&#160;&#160;<b>The Vice Presidents.</b>&#160;&#160;The
      Vice Presidents (if any) shall have such designations and perform such
      duties as the President or the Board of Directors shall prescribe.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>8.6</b>&#160;&#160;<b>The Secretary.</b>&#160;&#160;The
      Secretary shall attend all meetings of the Board of Directors and all
      meetings of the shareholders and record all votes and the minutes of all
      proceedings in a book to be kept for that purpose.&#160;&#160;He shall give, or
      cause to be given, notice of all meetings of the shareholders and
      regular and special meetings of the Board, and shall perform such other
      duties as may be prescribed by the Board or President.&#160;&#160;He shall keep in
      safe custody the seal of the Corporation, if any, and affix such seal to
      any instrument requiring it.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>8.7</b>&#160;&#160;<b>The Assistant Secretary.</b>&#160;&#160;The
      Assistant Secretary shall have the same powers and duties as the
      Secretary and shall perform such other duties as may be prescribed by
      the Board or President.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>8.8</b>&#160;&#160;<b>The Treasurer.</b>&#160;&#160;The
      Treasurer shall have the custody of the corporate funds and shall keep
      or cause to be kept full and accurate accounts of receipts and
      disbursements in books belonging to the Corporation and shall deposit
      all monies and other valuable effects in the name and to the credit of
      the Corporation in such depositories as may be designated by the Board
      of Directors.&#160;&#160;He shall keep a proper accounting of all receipts and
      disbursements and shall disburse the funds of the Corporation only for
      proper corporate purposes or as may be ordered by the Board and shall
      render to the President and the Board at the regular meetings of the
      Board, or whenever they may require it, an account of all his
      transactions as Treasurer and of the financial condition and results of
      operations of the Corporation.
    </p>
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        </div>
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        </div>
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        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <b>SECTION 9&#160;&#160;<br><br>STOCK</b>
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;<b>&#160;9.1</b>&#160;&#160;<b>Certificates.</b>&#160;&#160;Every
      holder of stock in the Corporation shall be entitled to have a
      certificate signed by the President or a Vice President and the
      Secretary or an Assistant Secretary evidencing the number and class (and
      series, if any) of shares owned by him, containing such information as
      required by law and bearing the seal of the Corporation.&#160;&#160;As provided in
      the Articles of Incorporation, the Board of Directors may approve the
      use of dual forms of stock certificates, one for issuance to U.S.
      citizen stockholders, and one for issuance to non-U.S. citizen
      stockholders.&#160;&#160;If any stock certificate is manually signed by a transfer
      agent or registrar other than the Corporation itself or an employee of
      the Corporation, the signature of any such officer may be a
      facsimile.&#160;&#160;In case any officer, transfer agent or registrar who has
      signed or whose facsimile signature has been placed upon a certificate
      shall have ceased to be an officer, transfer agent or registrar of the
      Corporation before such certificate is issued, it may be issued by the
      Corporation with the same effect as if such person or entity were an
      officer, transfer agent or registrar of the Corporation on the date of
      issue.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>9.2</b>&#160;&#160;<b>Missing Certificates.</b>&#160;&#160;The
      President or any Vice President may direct a new certificate or
      certificates to be issued in place of any certificate or certificates
      theretofore issued by the Corporation alleged to have been lost, stolen
      or destroyed, upon the Corporation&#8217;s receipt of an affidavit of that
      fact from the person claiming the certificate of stock to be lost,
      stolen or destroyed.&#160;&#160;As a condition precedent to the issuance of a new
      certificate or certificates, the officers of the Corporation shall,
      unless dispensed with by the President, require the owner of such lost,
      stolen or destroyed certificate or certificates, or his legal
      representative, to (i) give the Corporation a bond or (ii) enter into a
      written indemnity agreement, in each case in an amount appropriate to
      indemnify the Corporation against any claim that may be made against the
      Corporation with respect to the certificate alleged to have been lost,
      stolen or destroyed.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;&#160;<b>9.3</b>&#160;&#160;<b>Transfers.</b>&#160;&#160;The shares of
      stock of the Corporation shall be transferable only on the books of the
      Corporation by the holders thereof in person or by their duly authorized
      attorneys or legal representatives upon surrender and cancellation of
      certificates for a like number of shares.&#160;&#160;Upon surrender to the
      Corporation or the transfer agent of the Corporation of a certificate
      for shares duly endorsed or accompanied by proper evidence of
      succession, assignment or authority to transfer, it shall be the duty of
      the Corporation to issue a new certificate to the person entitled
      thereto, cancel the old certificate and record the transaction upon its
      books, provided that as a condition precedent to the transfer of shares
      on the records of the Corporation, the Corporation may require
      representations or other proof of the identity and citizenship of any
      prospective stockholder and may restrict transfers to non-U.S. citizens
      as provided in the Articles of Incorporation.
    </p>
    <p style="text-align: justify">
      <b>SECTION 10&#160;&#160;<br><br>DETERMINATION OF SHAREHOLDERS</b>
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      For the purpose of determining shareholders entitled to notice of and to
      vote at a meeting, or to receive a dividend, or to receive or exercise
      subscription or other rights, or to participate in a reclassification of
      stock, or in order to make a determination of shareholders for any other
      proper purpose, the Board of Directors may fix in advance a record date
      for determination of shareholders for such purpose, such date to be not
      more than 60 days and, if fixed for the purpose of determining
      shareholders entitled to notice of and to vote at a meeting, not less
      than 10 days, prior to the date on which the action requiring the
      determination of shareholders is to be taken.
    </p>
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        </div>
      </div>
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        </div>
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        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify">

    </p>
    <p style="text-align: justify">
      <b>SECTION 11&#160;&#160;<br><br>INDEMNIFICATION</b>
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;<b>11.1</b>&#160;&#160;<b>Definitions.</b>&#160;&#160;As used in this
      section the following terms shall have the meanings set forth below:
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(a)&#160;&#160;&#8220;Board&#8221; - the Board of Directors of the Corporation.
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(b)&#160;&#160;&#8220;Claim&#8221; - any threatened, pending or completed claim,
      action, suit, or proceeding, whether civil, criminal, administrative or
      investigative and whether made judicially or extra-judicially, or any
      separate issue or matter therein, as the context requires.
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(c)&#160;&#160;&#8220;Determining Body&#8221; - (i) those members of the Board who are
      not named as parties to the Claim for which indemnification is being
      sought (&#8220;Impartial Directors&#8221;), if there are at least three Impartial
      Directors, (ii) a committee of at least three Impartial Directors
      appointed by the Board (regardless whether the members of the Board of
      Directors voting on such appointment are Impartial Directors) or (iii)
      if there are fewer than three Impartial Directors or if the Board of
      Directors or the committee appointed pursuant to clause (ii) of this
      paragraph so directs (regardless whether the members thereof are
      Impartial Directors), independent legal counsel, which may be the
      regular outside counsel of the Corporation.
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(d)&#160;&#160;&#8220;Disbursing Officer&#8221; - the President of the Corporation or,
      if the President is a party to the Claim for which indemnification is
      being sought, any officer not a party to such Claim&#160;&#160;who is designated
      by the President to be the Disbursing Officer with respect to
      indemnification requests related to the Claim, which designation shall
      be made promptly after receipt of the initial request for
      indemnification with respect to such Claim.
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(e)&#160;&#160;&#8220;Expenses&#8221; - any expenses or costs, including, without
      limitation, attorney&#8217;s fees, judgments, punitive or exemplary damages,
      fines and amounts paid in settlement.
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(f)&#160;&#160;&#8220;Indemnitee&#8221; - each person who is or was a director or
      officer of the Corporation.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      <b>&#160;&#160;11.2&#160;&#160;Indemnity.</b>
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(a)&#160;&#160;To the extent such Expenses exceed the amounts reimbursed or
      paid pursuant to policies of liability insurance maintained by the
      Corporation, the Corporation shall indemnify each Indemnitee against any
      Expenses actually and reasonably incurred by him (as they are incurred)
      in connection with any Claim either against him or as to which he is
      involved solely as a witness or person required to give evidence, by
      reason of his position (i) as a director or officer of the Corporation,
      (ii) as a director or officer of any subsidiary of the Corporation,
      (iii) as a fiduciary with respect to any employee benefit plan of the
      Corporation, or (iv) as a director, officer, partner, employee or agent
      of another corporation, partnership, joint venture, trust or other
      for-profit or not-for-profit entity or enterprise, if such position is
      or was held at the request of the Corporation, whether relating to
      service in such position before or after the effective date of this
      Section, if he (i) is successful in his defense of the claim on the
      merits or otherwise or (ii) has been found by the Determining Body
      (acting in good faith) to have met the Standard of Conduct (defined
      below); provided that (A) the amount otherwise payable by the
      Corporation may be reduced by the Determining Body to such amount as it
      deems proper if it determines that the Claim involved the receipt of a
      personal benefit by Indemnitee, and (B) no indemnification shall be made
      in respect of any Claim as to which Indemnitee shall have been adjudged
      by a court of competent jurisdiction, after exhaustion of all appeals
      therefrom, to be liable for willful or intentional misconduct in the
      performance of his duty to the Corporation or to have obtained an
      improper personal benefit, unless, and only to the extent that, a court
      shall determine upon application that, despite the adjudication of
      liability but in view of all the circumstances of the case, Indemnitee
      is fairly and reasonably entitled to indemnity for such Expenses as the
      court deems proper.
    </p>
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          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify; text-indent: 120.0px">

    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(b)&#160;&#160;For purposes of this Section 11, the Standard of Conduct is
      met when the conduct by an Indemnitee with respect to which a Claim is
      asserted was conduct that was in good faith and that he reasonably
      believed to be in, or not opposed to, the best interest of the
      Corporation, and, in the case of a criminal action or proceeding, that
      he had no reasonable cause to believe was unlawful.&#160;&#160;The termination of
      any Claim by judgment, order, settlement, conviction, or upon a plea of
      nolo contendere or its equivalent, shall not, of itself, create a
      presumption that Indemnitee did not meet the Standard of Conduct.
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(c)&#160;&#160;Promptly upon becoming aware of the existence of any Claim
      as to which he may be indemnified hereunder, Indemnitee shall notify the
      President of the Corporation of the Claim and whether he intends to seek
      indemnification hereunder.&#160;&#160;If such notice indicates that Indemnitee
      does so intend, the President shall promptly advise the Board thereof
      and notify the Board that the establishment of the Determining Body with
      respect to the Claim will be a matter presented at the next regularly
      scheduled meeting of the Board.&#160;&#160;Such a meeting is to be held within 90
      calendar days of the date of Indemnitee&#8217;s request.&#160;&#160;If a meeting of the
      Board of Directors is not regularly scheduled within 120 calendar days
      of such request, the President shall cause a special meeting of the
      Board of Directors to be called within such period in accordance with
      these By-laws.&#160;&#160;After the Determining Body has been established the
      President shall inform the Indemnitee thereof and Indemnitee shall
      immediately provide the Determining Body with all facts relevant to the
      Claim known to him.&#160;&#160;No later than the 60th day (the &#8220;Determination
      Date&#8221;) after its receipt of such information, together with such
      additional information as the Determining Body may request of
      Indemnitee, the Determining Body shall determine, and shall advise
      Indemnitee of its determination, whether Indemnitee has met the Standard
      of Conduct.&#160;&#160;
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(d)&#160;&#160;During such 60-day period, Indemnitee shall promptly inform
      the Determining Body upon his becoming aware of any relevant facts not
      theretofore provided by him to the Determining Body, unless the
      Determining Body has obtained such facts by other means.&#160;&#160;The providing
      of such facts to the Determining Body shall not begin a new 60-day
      period.
    </p>
    <p style="text-align: justify; text-indent: 120.0px">

    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160; &#160;&#160;(e)&#160;&#160;The Determining Body shall have no authority to revoke a
      determination that Indemnitee met the Standard of Conduct unless
      Indemnitee (i) submits fraudulent information to the Determining Body at
      any time during the 60 days prior to the Determination Date or (ii)
      fails to comply with the provisions of subsections (c) or (d) hereof,
      including without limitation Indemnitee&#8217;s obligation to submit
      information or documents relevant to the Claim reasonably requested by
      the Determining Body prior to the Determination Date.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
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        <div style="text-align: left">

        </div>
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          11
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          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify; text-indent: 120.0px">

    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(f)&#160;&#160;In the case of any Claim not involving a proposed,
      threatened or pending criminal proceeding,
    </p>
    <p style="text-align: justify; text-indent: 180.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(i)&#160;&#160;if Indemnitee has, in the good faith judgment of the
      Determining Body, met the Standard of Conduct, the Corporation may, in
      its sole discretion after notice to Indemnitee, assume all
      responsibility for the defense of the Claim, and, in any event, the
      Corporation and the Indemnitee each shall keep the other informed as to
      the progress of the defense, including prompt disclosure of any
      proposals for settlement; provided that if the Corporation is a party to
      the Claim and Indemnitee reasonably determines that there is a conflict
      between the positions of the Corporation and Indemnitee with respect to
      the Claim, then Indemnitee shall be entitled to conduct his defense,
      with counsel of his choice; and provided further that Indemnitee shall
      in any event be entitled at his expense to employ counsel chosen by him
      to participate in the defense of the Claim; and
    </p>
    <p style="text-align: justify; text-indent: 180.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(ii)&#160;&#160;the Corporation shall fairly consider any proposals by
      Indemnitee for settlement of the Claim.&#160;&#160;If the Corporation (A) proposes
      a settlement acceptable to the person asserting the Claim, or (B)
      believes a settlement proposed by the person asserting the Claim should
      be accepted, it shall inform Indemnitee of the terms thereof and shall
      fix a reasonable date by which Indemnitee shall respond.&#160;&#160;If Indemnitee
      agrees to such terms, he shall execute such documents as shall be
      necessary to effect the settlement.&#160;&#160;If he does not agree he may proceed
      with the defense of the Claim in any manner he chooses, but if he is not
      successful on the merits or otherwise, the Corporation&#8217;s obligation to
      indemnify him for any Expenses incurred following his disagreement shall
      be limited to the lesser of (A) the total Expenses incurred by him
      following his decision not to agree to such proposed settlement or (B)
      the amount the Corporation would have paid pursuant to the terms of the
      proposed settlement.&#160;&#160;If, however, the proposed settlement would impose
      upon Indemnitee any requirement to act or refrain from acting that would
      materially interfere with the conduct of his affairs, Indemnitee may
      refuse such settlement and proceed with the defense of the Claim, if he
      so desires, at the Corporation&#8217;s expense without regard to the
      limitations imposed by the preceding sentence.&#160;&#160;In no event, however,
      shall the Corporation be obligated to indemnify Indemnitee for any
      amount paid in a settlement that the Corporation has not approved.
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(g)&#160;&#160;In the case of a Claim involving a proposed, threatened or
      pending criminal proceeding, Indemnitee shall be entitled to conduct the
      defense of the claim, and to make all decisions with respect thereto,
      with counsel of his choice; provided, however, that the Corporation
      shall not be obligated to indemnify Indemnitee for an amount paid in
      settlement that the Corporation has not approved.
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(h)&#160;&#160;After notifying the Corporation of the existence of a Claim,
      Indemnitee may from time to time request the Corporation to pay the
      Expenses (other than judgments, fines, penalties or amounts paid in
      settlement) that he incurs in pursuing a defense of the Claim prior to
      the time that the Determining Body determines whether the Standard of
      Conduct has been met.&#160;&#160;If the Disbursing Officer believes the amount
      requested to be reasonable, he shall pay to Indemnitee the amount
      requested (regardless of Indemnitee&#8217;s apparent ability to repay such
      amount) upon receipt of an undertaking by or on behalf of Indemnitee to
      repay such amount if it shall ultimately be determined that he is not
      entitled to be indemnified by the Corporation under the
      circumstances.&#160;&#160;If the disbursing Officer does not believe such amount
      to be reasonable, the Corporation shall pay the amount deemed by him to
      be reasonable and Indemnitee may apply directly to the Determining Body
      for the remainder of the amount requested.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
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        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify; text-indent: 120.0px">

    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(i)&#160;&#160;After the Determining Body has determined that the Standard
      of Conduct was met, for so long as and to the extent that the
      Corporation is required to indemnify Indemnitee under this Agreement,
      the provisions of paragraph (h) shall continue to apply with respect to
      Expenses incurred after such time except that (i) no undertaking shall
      be required of Indemnitee and (ii) the Disbursing Officer shall pay to
      Indemnitee such amount of any fines, penalties or judgments against him
      which have become final as the Corporation is obligated to indemnify him.
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(j)&#160;&#160;Any determination by the Corporation with respect to
      settlements of a Claim shall be made by the Determining Body.
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(k)&#160;&#160;The Corporation and Indemnitee shall keep confidential, to
      the extent permitted by law and their fiduciary obligations, all facts
      and determinations provided or made pursuant to or arising out of the
      operation of this Section, and the Corporation and Indemnitee shall
      instruct its or his agents and employees to do likewise.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">

    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      <b>11.3&#160;&#160;Enforcement.</b>
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(a)&#160;&#160;The rights provided by this Section shall be enforceable by
      Indemnitee in any court of competent jurisdiction.
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(b)&#160;&#160;If Indemnitee seeks a judicial adjudication of his rights
      under this Section, Indemnitee shall be entitled to recover from the
      Corporation, and shall be indemnified by the Corporation against, any
      and all Expenses actually and reasonably incurred by him in connection
      with such proceeding but only if he prevails therein.&#160;&#160;If it shall be
      determined that Indemnitee is entitled to receive part but not all of
      the relief sought, then the Indemnitee shall be entitled to be
      reimbursed for all Expenses incurred by him in connection with such
      judicial adjudication if the amount to which he is determined to be
      entitled exceeds 50% of the amount of his claim.&#160;&#160;Otherwise, the
      Expenses incurred by Indemnitee in connection with such judicial
      adjudication shall be appropriately prorated.
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(c)&#160;&#160;In any judicial proceeding described in this subsection, the
      Corporation shall bear the burden of proving that Indemnitee is not
      entitled to any Expenses sought with respect to any Claim.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">

    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      <b>11.4</b>&#160;&#160;<b>Saving Clause.</b>&#160;&#160;If any provision of this
      Section is determined by a court having jurisdiction over the matter to
      require the Corporation to do or refrain from doing any act that is in
      violation of applicable law, the court shall be empowered to modify or
      reform such provision so that, as modified or reformed, such provision
      provides the maximum indemnification permitted by law, and such
      provision, as so modified or reformed, and the balance of this Section,
      shall be applied in accordance with their terms.&#160;&#160;Without limiting the
      generality of the foregoing, if any portion of this Section shall be
      invalidated on any ground, the Corporation shall nevertheless indemnify
      an Indemnitee to the full extent permitted by any applicable portion of
      this Section that shall not have been invalidated and to the full extent
      permitted by law with respect to that portion that has been invalidated.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
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        </div>
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      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify; text-indent: 60.0px">

    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      <b>&#160;&#160;11.5&#160;&#160;Non-Exclusivity.</b>
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(a)&#160;&#160;The indemnification and advancement of Expenses provided by
      or granted pursuant to this Section shall not be deemed exclusive of any
      other rights to which Indemnitee is or may become entitled under any
      statute, article of incorporation, by-law, authorization of shareholders
      or directors, agreement, or otherwise.
    </p>
    <p style="text-align: justify; text-indent: 120.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(b)&#160;&#160;It is the intent of the Corporation by this Section to
      indemnify and hold harmless Indemnitee to the fullest extent permitted
      by law, so that if applicable law would permit the Corporation to
      provide broader indemnification rights than are currently permitted, the
      Corporation shall indemnify and hold harmless Indemnitee to the fullest
      extent permitted by applicable law notwithstanding that the other terms
      of this Section would provide for lesser indemnification.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;<b>11.6</b>&#160;&#160;<b>Successors and Assigns.</b>&#160;&#160;This
      Section shall be binding upon the Corporation, its successors and
      assigns, and shall inure to the benefit of the Indemnitee&#8217;s heirs,
      personal representatives, and assigns and to the benefit of the
      Corporation, its successors and assigns.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;<b>11.7</b>&#160;&#160;<b>Indemnification of Other Persons.</b>&#160;&#160;The
      Corporation may indemnify any person not covered by Sections 11.1
      through 11.6 to the extent provided in a resolution of the Board or a
      separate section of these By-laws.
    </p>
    <p style="text-align: justify">
      <br>
      <b>SECTION 12&#160;&#160;<br><br>ADOPTION AND AMENDMENT OF BY-LAWS</b>
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      By-laws of the Corporation may be adopted and amended as provided in the
      Articles of Incorporation.&#160;&#160;
    </p>
    <p style="text-align: justify">
      <b>SECTION 13&#160;&#160;<br><br>MISCELLANEOUS</b>
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;<b>13.1</b>&#160;&#160;<b>Dividends.</b>&#160;&#160;Except as
      otherwise provided by law, the Articles of Incorporation or these
      By-laws, dividends upon the stock of the Corporation may be declared by
      the Board of Directors at any regular or special meeting.&#160;&#160;Dividends may
      be paid in cash, property, or shares of stock, subject to the
      limitations specified in the Articles of Incorporation.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;<b>13.2</b>&#160;&#160;<b>Voting of Shares Owned by Corporation.</b>&#160;&#160;Unless
      otherwise directed by the Board, any shares of capital stock issued by a
      wholly-owned subsidiary of the Corporation may be voted by the President
      of the Corporation, or by any person authorized to do so by the
      President, at any shareholders&#8217; meeting of the subsidiary (or in
      connection with any written consent in lieu thereof).
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;<b>13.3</b>&#160;&#160;<b>Fiscal Year.</b>&#160;&#160;The Board of
      Directors may adopt for and on behalf of the Corporation a fiscal or a
      calendar year.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;<b>13.4</b>&#160;&#160;<b>Seal.</b>&#160;&#160;The Board of Directors
      may adopt a corporate seal, which shall have inscribed thereon the name
      of the Corporation.&#160;&#160;The seal may be used by causing it or a facsimile
      thereof to be impressed or affixed or reproduced or otherwise.&#160;&#160;Failure
      to affix the seal shall not, however, affect the validity of any
      instrument.
    </p>
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        </div>
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        </div>
      </div>
    </div>
    <p style="text-align: justify; text-indent: 60.0px">

    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;<b>13.5</b>&#160;&#160;<b>Gender.</b>&#160;&#160;All pronouns and
      variations thereof used in these By-laws shall be deemed&#160;&#160;to refer to
      the masculine, feminine or neuter gender, singular or plural, as the
      identity of the person, persons, entity or entities referred to may
      require.
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      &#160;&#160;<b>13.6</b>&#160;&#160;<b>Control Share Acquisitions.</b>&#160;&#160;The
      provisions of Sections 135 through 140.2 of the Louisiana Business
      Corporation Law (La.R.S. 12:135 through 140.2) do not apply to control
      share acquisitions of shares of the Corporation.&#160;&#160;
    </p>
    <p style="text-align: left">

    </p>
    <p style="text-align: center">
      15
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>a50257025ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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  <head>
    <title></title>
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    <p style="text-align: right">
      <b>EXHIBIT 99.1</b>
    </p>
    <p style="text-align: center">
      <b>CHANGE OF CONTROL AGREEMENT</b><br><br>
    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      This Change of Control Agreement (the &#8220;Agreement&#8221;) between Gulf Island
      Fabrication, Inc., a Louisiana corporation (the &#8220;Company&#8221;), and Roy F.
      Breerwood, III (the &#8220;Executive&#8221;) is dated effective April 27, 2012 (the
      &#8220;Agreement Date&#8221;).
    </p>
    <p style="text-align: justify">

    </p>
    <p style="text-align: center">
      <b>ARTICLE I</b><br><b>DEFINITIONS</b>
    </p>
    <p style="text-align: justify">
      &#160;Whenever the following terms are used in this Agreement, they shall
      have the meaning specified below unless the context clearly indicates to
      the contrary.&#160;&#160;The singular pronoun shall include the plural where the
      context so indicates.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.1</b>&#160;&#8220;<b>Accrued Salary</b>&#8221; has the meaning provided
      in Section 2.3(a)(i).
    </p>
    <p style="text-indent: 60.0px">
      <b>1.2</b>&#160;&#8220;<b>Affiliate</b>&#8221; of any Person means any other
      Person directly or indirectly controlling or controlled by or under
      direct or indirect common control with such Person.&#160;&#160;For purposes of
      this definition, &#8220;control&#8221; means the possession, directly or indirectly,
      of the power to direct or cause the direction of the management and
      policies of such person or entity, whether through the ownership of
      voting securities or otherwise; and the terms &#8220;controlling&#8221; and
      &#8220;controlled&#8221; shall have correlative meanings.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.3</b>&#160;&#8220;<b>Base Salary</b>&#8221; has the meaning provided in
      Section 2.2(a).
    </p>
    <p style="text-indent: 60.0px">
      <b>1.4</b>&#160;&#8220;<b>Beneficial Owner</b>&#8221; (and variants thereof)
      with respect to a security, means a Person who, directly or indirectly
      (through any contract, understanding, relationship, or otherwise) has or
      shares (a) the power to vote, or direct of the voting of, the security,
      and (b) the power to dispose of, or to direct the disposition of, the
      security.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.5</b>&#160;&#8220;<b>Board</b>&#8221; means the Board of Directors of the
      Company.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.6</b>&#160;&#8220;<b>Business Combination</b>&#8221; means the
      consummation of a reorganization, merger or consolidation (including a
      merger or consolidation of the Company or any direct or indirect
      subsidiary of the Company), or sale or other disposition of all or
      substantially all of the assets of the Company.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.7</b>&#160;&#8220;<b>Cause</b>.&#8221;
    </p>
    <p style="text-indent: 120.0px">
      (a)&#160;&#8220;Cause&#8221; means:
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (i)&#160;the Executive&#8217;s willful and continued failure to perform
      substantially the Executive&#8217;s duties with the Company or its Affiliates
      (other than any such failure resulting from incapacity due to physical
      or mental illness), after a written demand for substantial performance
      is delivered to the Executive by the Board, which specifically
      identifies the manner in which the Board believes that the Executive has
      not substantially performed the Executive&#8217;s duties;
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (ii)&#160;the willful engaging in conduct that is demonstrably and materially
      injurious to the Company or any of its Affiliates, monetarily or
      otherwise;
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (iii)&#160;unauthorized acts or omissions by the Executive that could
      reasonably be expected to cause material financial harm to the Company
      or materially disrupt Company operations;
    </p>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify">

    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (iv)&#160;commission by the Executive of an act of dishonesty (even if not a
      crime) resulting in the enrichment of the Executive at the expense of
      the Company;
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (v)&#160;the Executive&#8217;s knowing falsification or knowing attempted
      falsification of financial records of the Company in violation of SEC
      Rule 13b2-1; or
    </p>
    <p style="text-align: justify">
      &#160;(vi)&#160;the final conviction of the Executive or an entering of a guilty
      plea or a plea of no contest by the Executive to a felony.
    </p>
    <p style="text-indent: 120.0px">
      (b)&#160;For purposes of subparagraphs (a)(i) and (a)(ii) above, no act or
      failure to act, on the part of the Executive, shall be considered
      &#8220;willful&#8221; unless it is done, or omitted to be done, by the Executive in
      bad faith or without reasonable belief that the Executive&#8217;s action or
      omission was in the best interest of the Company or its Affiliates.
    </p>
    <p style="text-indent: 120.0px">
      (c)&#160;Any act, or failure to act, based on authority given pursuant to a
      resolution duly adopted by the Board, upon the instructions of a senior
      officer of the company, or based upon the advice of counsel for the
      Company or its Affiliates shall be conclusively determined to be done,
      or omitted to be done, by the Executive in good faith and in the best
      interest of the Company or its Affiliates.
    </p>
    <p style="text-indent: 120.0px">
      (d)&#160;The termination of employment of the Executive shall not be deemed
      to be for Cause unless and until there shall have been delivered to the
      Executive a copy of a resolution duly adopted by the affirmative vote of
      not less than three-quarters of the entire membership of the Board at a
      meeting of the Board called and held for such purpose (after reasonable
      notice is provided to the Executive and the Executive, together with
      counsel, is given an opportunity to be heard before the Board), finding
      that, in the good faith opinion of the Board, the Executive is guilty of
      conduct described in subparagraph (a) above, and specifying the
      particulars of such conduct.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.8</b>&#160;&#8220;<b>Change of Control</b>&#8221; means
    </p>
    <p style="text-indent: 120.0px">
      (a)&#160;The acquisition by any Person of Beneficial Ownership of 30% or more
      of the outstanding shares of the Common Stock or 30% or more of the
      combined voting power of the Company&#8217;s then-outstanding securities
      entitled to vote generally in the election of directors; provide,
      however, that for purposes of this Section 1.8(a) , the following
      acquisitions shall not constitute a Change of Control:
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (i)&#160;any acquisition (other than a Business Combination which constitutes
      a Change of Control under&#160;&#160;Section 1.8(c) ) of Common Stock directly
      from the Company,
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (ii)&#160;any acquisition of Common Stock by the Company,
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (iii)&#160;any acquisition of Common Stock by any employee benefit plan (or
      related trust) sponsored or maintained by the Company or its Affiliates,
      or
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (iv)&#160;any acquisition by Alden J. Laborde, his Immediate Family Members
      or any entity controlled by Alden J. Laborde or his Immediate Family
      Members; or
    </p>
    <p style="text-indent: 120.0px">
      (b)&#160;individuals who, as of the Agreement Date, constituted the Incumbent
      Board, cease for any reason to constitute at least a majority of the
      Board; provided, however, that any individual becoming a director
      subsequent to such date whose election or nomination for election by the
      Company&#8217;s shareholders was approved by a vote of at least two-thirds of
      the directors then comprising the Incumbent Board, unless such
      individual&#8217;s initial assumption of office occurs as a result of an
      actual or threatened election contest with respect to the election or
      removal of directors or other actual or threatened solicitation of
      proxies or consents by or on behalf of a person other than the Incumbent
      Board; or
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify">

    </p>
    <p style="text-indent: 120.0px">
      (c)&#160;a Business Combination, provided, however, that in no such case
      shall any such transaction constitute a Change of Control if immediately
      following such Business Combination:
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (i)&#160;the individuals and entities who were the Beneficial Owners of the
      Company&#8217;s outstanding Common Stock and the Company&#8217;s voting securities
      entitled to vote generally in the election of directors immediately
      prior to such Business Combination have direct or indirect Beneficial
      Ownership, respectively, of more than 50% of the then outstanding shares
      of Common Stock, and more than 50% of the combined voting power of the
      then outstanding voting securities entitled to vote generally in the
      election of directors of the Post-Transaction Corporation;
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (ii)&#160;except to the extent that such ownership existed prior to the
      Business Combination, no Person (excluding the Post-Transaction
      Corporation and any employee benefit plan or related trust of either the
      Company, the Post-Transaction Corporation, or any Affiliates of either)
      beneficially owns, directly or indirectly, 25% or more of the then
      outstanding shares of common stock of the corporation resulting from
      such Business Combination or 25% or more of the combined voting power of
      the then outstanding voting securities of such corporation; and
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (iii)&#160;at least a majority of the members of the board of directors of
      the Post-Transaction Corporation were members of the Incumbent Board at
      the time of the execution of the initial agreement, or of the action of
      the Board of Directors, providing for such Business Combination; or
    </p>
    <p style="text-indent: 120.0px">
      (d)&#160;approval by the shareholders of the Company of a complete
      liquidation or dissolution of the Company.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.9</b>&#160;&#8220;<b>Code</b>&#8221; means the Internal Revenue Code of
      1986, as amended.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.10</b>&#160;&#8220;<b>Common Stock</b>&#8221; means the common stock, no
      par value per share, of the Company.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.11</b>&#160;&#8220;<b>Company</b>&#8221; means the Company as defined
      above and any successor to or assignee of (whether direct or indirect,
      by purchase, merger, consolidation, or otherwise) all or substantially
      all of the assets of the Company.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.12</b>&#160;&#8220;<b>Confidential Information</b>&#8221; means any
      information, knowledge, or data of any nature and in any form (including
      information that is electronically transmitted or stored on any form of
      magnetic or electronic storage media) relating to the past, current, or
      prospective business or operations of the Company and its Affiliates,
      that at the time or times concerned is not generally known to persons
      engaged in businesses similar to those conducted or contemplated by the
      Company and its Affiliates (other than information known by such persons
      through a violation of an obligation of confidentiality to the Company),
      whether produced by the Company and its Affiliates or any of their
      consultants, agents, or independent contractors or by Executive, and
      whether or not marked confidential, including without limitation
      information relating to the Company&#8217;s or its Affiliates&#8217; products and
      services, business plans, business acquisitions, processes, product or
      service research and development ideas, methods or techniques, training
      methods and materials, and other operational methods or techniques,
      quality assurance procedures or standards, operating procedures, files,
      plans, specifications, proposals, drawings, charts, graphs, support
      data, trade secrets, supplier lists, supplier information, purchasing
      methods or practices, distribution and selling activities, consultants&#8217;
      reports, marketing and engineering or other technical studies,
      maintenance records, employment or personnel data, marketing data,
      strategies or techniques, financial reports, budgets, projections, cost
      analyses, price lists, formulae and analyses, employee lists, customer
      records, customer lists, customer source lists, proprietary computer
      software, and internal notes and memoranda relating to any of the
      foregoing.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-indent: 60.0px">

    </p>
    <p style="text-indent: 60.0px">
      <b>1.13</b>&#160;&#8220;<b>Continuation Period</b>&#8221; has the meaning
      provided in Section 2.3(c)(iii).
    </p>
    <p style="text-indent: 60.0px">
      <b>1.14</b>&#160;&#8220;<b>Disability</b>&#8221; means a condition that would
      entitle the Executive to receive benefits under the Company&#8217;s long-term
      disability insurance policy in effect at the time either because he is
      Totally Disabled or Partially Disabled, as such terms are defined in the
      Company&#8217;s policy in effect as of the Agreement Date or as similar terms
      are defined in any successor policy.&#160;&#160;If the Company has no long-term
      disability plan in effect, &#8220;Disability&#8221; shall occur if (a) the Executive
      is rendered incapable because of physical or mental illness of
      satisfactorily discharging his duties and responsibilities to the
      Company for a period of 90 consecutive days, (b) a duly qualified
      physician chosen by the Company and acceptable to the Executive or his
      legal representatives so certifies in writing, and (c) the Board
      determines that the Executive has become disabled.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.15</b>&#160;&#8220;<b>Employment Term</b>&#8221; has the meaning provided
      in Section 2.1(a).
    </p>
    <p style="text-indent: 60.0px">
      <b>1.16</b>&#160;&#8220;<b>Expiration Date</b>&#8221; has the meaning provided
      in Section 2.1(a).
    </p>
    <p style="text-indent: 60.0px">
      <b>1.17</b>&#160;&#8220;<b>Good Reason</b>&#8221; means any action or inaction
      during the Employment Term that constitutes a material negative change
      in the service relationship between the Executive and the Company and a
      material breach by the Company of its obligations under the terms of
      this Agreement, provided that the Executive shall have provided written
      notice to the Company within 90 days of the initial existence of the
      condition described in this&#160;&#160;Section 1.17&#160;&#160;and such event or condition
      continues uncured for a period of 30 days after written notice thereof
      is given by the Executive to the Company.&#160;&#160;A termination by the
      Executive with Good Reason shall constitute an involuntary termination
      for purposes of Section 409A of the Internal Revenue Code of 1986, as
      amended.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.18</b>&#160;&#8220;<b>Immediate Family Members</b>&#8221; means the
      spouse and the natural or adopted children or grandchildren of a
      specified individual.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.19</b>&#160;&#8220;<b>Incumbent Board</b>&#8221; means individuals who,
      as of a specified date, constituted the Board of Directors of the
      Company.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.20</b>&#160;&#8220;<b>Person</b>&#8221; means a natural person, company,
      limited partnership, general partnership, limited liability company or
      partnership, joint venture, association, trust, bank, trust company,
      land trust, business trust or other organization, whether or not a legal
      entity, and a government or agency or political subdivision thereof.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.21</b>&#160;&#8220;<b>Post-Transaction Corporation</b>.&#8221;
    </p>
    <p style="text-indent: 120.0px">
      (a)&#160;Unless a Change of Control includes a Business Combination,
      Post-Transaction Corporation means the Company after the Change of
      Control.
    </p>
    <p style="text-indent: 120.0px">
      (b)&#160;If a Change of Control includes a Business Combination,
      Post-Transaction Corporation means the corporation resulting from the
      Business Combination unless, as a result of such Business Combination,
      an ultimate parent corporation controls the Company or all or
      substantially all of the Company&#8217;s assets either directly or indirectly,
      in which case, Post-Transaction Corporation shall mean such ultimate
      parent corporation.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.22</b>&#160;&#8220;<b>Pro Rata Bonus</b>&#8221; has the meaning provided
      in Section 2.3(a)(ii).
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify">

    </p>
    <p style="text-indent: 60.0px">
      <b>1.23</b>&#160;&#8220;<b>Section 409A</b>&#8221; means Section 409A of the
      Code, as amended, and the regulations and guidance issued thereunder.
    </p>
    <p style="text-indent: 60.0px">
      <b>1.24</b>&#160;&#8220;<b>Termination Date</b>&#8221; means, if Executive&#8217;s
      status as an officer and employee is terminated (a) by reason of
      Executive&#8217;s death, the date of Executive&#8217;s death; (b) by reason of
      Disability, the date on which termination of Executive&#8217;s status as an
      officer and employee becomes effective due to Disability; (c) by the
      Company other than by reason of death or Disability, the date of
      delivery of the notice of termination or any later date specified in the
      notice of termination, which date will not be more than 30 days after
      the giving of the notice; or (d) by the Executive other than by reason
      of death, the date of delivery of the notice of termination or any later
      date specified in the notice of termination, which date will not be more
      than 30 days after the giving of the notice.
    </p>
    <p style="text-align: center">
      <b>ARTICLE II</b><br><b>CHANGE OF CONTROL BENEFIT</b>
    </p>
    <p style="text-align: justify">

    </p>
    <p style="text-indent: 60.0px">
      <b>2.1</b>&#160;<b>Employment Term and Capacity after Change of Control.</b>
    </p>
    <p style="text-indent: 120.0px">
      (a)&#160;This Agreement shall commence on the Agreement Date and continue in
      effect through December 31, 2012 (the &#8220; Expiration Date &#8221;).&#160;&#160;If the
      Executive continues to serve as an officer of the Company and a Change
      of Control occurs on or before the Expiration Date, then the Executive&#8217;s
      employment term (the&#160;&#160;&#160;&#8220;Employment Term&#8221;) shall continue for a period of
      eighteen<b> </b>months following the Change of Control, subject to any
      earlier termination of Executive&#8217;s status as an officer and employee
      pursuant to this Agreement.&#160;
    </p>
    <p style="text-indent: 120.0px">
      (b)&#160;After a Change of Control and during the Employment Term, (i) the
      Executive&#8217;s position (including status, offices, titles, and reporting
      requirements), authority, duties, and responsibilities shall be at least
      commensurate in all material respects with the most significant of those
      held, exercised, and assigned at any time during the 120-day period
      immediately preceding the Change of Control; and (ii) the Executive&#8217;s
      services shall be performed at the location where the Executive was
      employed immediately preceding the Change of Control or any office or
      location less than 50 miles from such location.&#160;&#160;Executive&#8217;s position,
      authority, duties, and responsibilities after a Change of Control shall
      not be considered commensurate in all material respects with Executive&#8217;s
      position, authority, duties, and responsibilities prior to a Change of
      Control unless after the Change of Control the Executive holds an
      equivalent position in the Post-Transaction Corporation.
    </p>
    <p style="text-indent: 60.0px">
      <b>2.2</b>&#160;<b>Compensation and Benefits</b>. During the Employment
      Term, the Executive shall be entitled to the following compensation and
      benefits:
    </p>
    <p style="text-indent: 120.0px">
      (a)&#160;Salary.&#160;&#160;An annual salary (&#8220;Base Salary&#8221;) at the highest rate in
      effect for the Executive at any time during the 120-day period
      immediately preceding the Change of Control, payable to the Executive at
      such intervals no less frequent than the most frequent intervals in
      effect at any time during the 120-day period immediately preceding the
      Change of Control or, if more favorable to the Executive, the intervals
      in effect at any time after the Change of Control for other most senior
      executives of the Post-Transaction Corporation and its Affiliates.
    </p>
    <p style="text-indent: 120.0px">
      (b)&#160;Bonus.&#160;&#160;Executive shall be entitled to participate in an annual
      incentive bonus program applicable to other most senior executives of
      the Post-Transaction Corporation and its Affiliates but in no event
      shall such program provide the Executive with incentive opportunities
      less favorable than the most favorable of those provided by the Company
      and its Affiliates for the Executive under the Company&#8217;s annual cash
      plan as in effect for Executive at any time during the 120-day period
      immediately preceding the Change of Control or, if more favorable to the
      Executive, those provided generally at any time after the Change of
      Control to other most senior executives of the Post-Transaction
      Corporation and its Affiliates.&#160;&#160;Any such bonus shall be paid in cash no
      later than two and a half months following the close of the fiscal year
      for which it is earned.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify">

    </p>
    <p style="text-indent: 120.0px">
      (c)&#160;Fringe Benefits. The Executive shall be entitled to fringe benefits
      (including, but not limited to, automobile allowance, air travel, and
      reimbursement for club membership dues) in accordance with the most
      favorable agreements, plans, practices, programs, and policies of the
      Company and its Affiliates in effect for the Executive at any time
      during the 120-day period immediately preceding the Change of Control
      or, if more favorable to the Executive, as in effect generally at any
      time thereafter with respect to other most senior executives of the
      Post-Transaction Corporation and its Affiliates.
    </p>
    <p style="text-indent: 120.0px">
      (d)&#160;Expenses. The Executive shall be entitled to receive prompt
      reimbursement for all reasonable business expenses (including food and
      lodging) incurred by the Executive in accordance with the most favorable
      agreements, policies, practices, and procedures of the Company and its
      Affiliates in effect for the Executive at any time during the 120-day
      period immediately preceding the Change of Control or, if more favorable
      to the Executive, as in effect generally at any time thereafter with
      respect to other most senior executives of the Post-Transaction
      Corporation and its Affiliates.
    </p>
    <p style="text-indent: 120.0px">
      (e)&#160;Incentive, Savings and Retirement Plans. The Executive shall be
      entitled to participate in all incentive, savings and retirement plans,
      practices, policies, and programs applicable generally to other most
      senior executives of the Post-Transaction Corporation and its
      Affiliates, but in no event shall such plans, practices, policies, and
      programs provide the Executive with incentive opportunities (measured
      with respect to both regular and special incentive opportunities, to the
      extent, if any, that such distinction is applicable), savings
      opportunities and retirement benefit opportunities, in each case, less
      favorable than the most favorable of those provided by the Company and
      its Affiliates for the Executive under any agreements, plans, practices,
      policies, and programs as in effect at any time during the 120-day
      period immediately preceding the Change of Control.
    </p>
    <p style="text-indent: 120.0px">
      (f)&#160;Welfare Benefit Plans. The Executive and the Executive&#8217;s family
      shall be eligible for participation in and shall receive all benefits
      under welfare benefit plans, practices, policies, and programs provided
      by the Post-Transaction Corporation and its Affiliates (including,
      without limitation, medical, prescription, dental, disability, employee
      life, group life, accidental death, and travel accident insurance plans
      and programs) to the extent applicable generally to other most senior
      executives of the Post-Transaction Corporation and its Affiliates, but
      in no event shall such plans, practices, policies, and programs provide
      the Executive with benefits, in each case, less favorable than the most
      favorable of any agreements, plans, practices, policies and programs of
      the Company and its Affiliates in effect for the Executive at any time
      during the 120-day period immediately preceding the Change of Control.
    </p>
    <p style="text-indent: 120.0px">
      (g)&#160;Indemnification and Insurance. The Post-Transaction Corporation
      shall indemnify the Executive, to the fullest extent permitted by
      applicable law, for any and all claims brought against him arising out
      his services during or prior to the Employment Term.&#160;&#160;In addition, the
      Post-Transaction Corporation shall maintain a directors&#8217; and officers&#8217;
      insurance policy covering the Executive substantially in the form of the
      policy maintained by the Company and its Affiliates at any time during
      the 120-day period immediately preceding the Change of Control or, if
      more favorable to the Executive, as provided generally at any time
      thereafter with respect to other most senior executives of the
      Post-Transaction Corporation and its Affiliates.
    </p>
    <p style="text-indent: 120.0px">
      (h)&#160;Office and Support Staff.&#160;&#160;The Executive shall be entitled to an
      office or offices of a size and with furnishings and other appointments,
      and to exclusive personal secretarial and other assistance, at least
      equal to the most favorable of the foregoing provided to the Executive
      by the Company and its Affiliates at any time during the 120-day period
      immediately preceding the Change of Control or, if more favorable to the
      Executive, as provided generally at any time thereafter with respect to
      other most senior executives of the Post-Transaction Corporation and its
      Affiliates.
    </p>
    <p style="text-indent: 120.0px">
      (i)&#160;Vacation. The Executive shall be entitled to paid vacation in
      accordance with the most favorable agreements, plans, policies,
      programs, and practices of the Company and its Affiliates as in effect
      for the Executive at any time during the 120-day period immediately
      preceding the Change of Control or, if more favorable to the Executive,
      as in effect generally at any time thereafter with respect to other most
      senior executives of the Post-Transaction Corporation and its Affiliates.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<b>2.3</b>&#160;<b>Obligations
      upon Termination After a Change of Control.</b>
    </p>
    <p style="text-indent: 120.0px">
      (a)&#160;Termination as a Result of Death, Disability, or Retirement. If,
      after a Change of Control and during the Employment Term, (1) the
      Executive&#8217;s status as an officer and employee is terminated by reason of
      the Executive&#8217;s death, (2) the Post-Transaction Corporation terminates
      the Executive&#8217;s status as an officer and employee by reason of
      Executive&#8217;s Disability, or (3) the Executive retires and terminates his
      status as an officer and employee, then, subject to Section 2.3(f) and,
      if applicable, the six-month delay set forth in Section 2.7:
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (i)&#160;the Post-Transaction Corporation or an Affiliate will pay to the
      Executive or his legal representatives the Executive&#8217;s Base Salary
      earned through the Termination Date to the extent not previously paid
      (the&#160;&#160;&#160;&#160;&#160;&#160;&#8220;Accrued Salary &#8221;);
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (ii)&#160;the Post-Transaction Corporation or an Affiliate will pay to the
      Executive or his legal representatives a pro rata bonus in an amount
      determined by (1) calculating the average of the annual bonus received
      by the Executive in the three most recently completed fiscal years prior
      to the Termination Date, then (2) multiplying such bonus amount by the
      fraction obtained by dividing the number of days in the year through the
      Termination Date by 365 (the &#8220;Pro Rata Bonus&#8221;); and
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (iii)&#160;the Post-Transaction Corporation or an Affiliate will pay or
      deliver, as appropriate, all other benefits earned by the Executive or
      accrued for his benefit pursuant to any employee benefit plans
      maintained by the Post-Transaction Corporation or its Affiliates with
      respect to services rendered by the Executive prior to the Termination
      Date.
    </p>
    <p style="text-indent: 120.0px">
      (b)&#160;Termination by Company for Cause; by Executive for other than Good
      Reason.&#160;&#160;If, after a Change of Control and during the Employment Term,
      the Executive&#8217;s status as an officer and employee is terminated by the
      Post-Transaction Corporation or an Affiliate for Cause, or by the
      Executive for other than Good Reason, the Post-Transaction Corporation
      or Affiliate will pay to the Executive the Accrued Salary without
      further obligation to the Executive other than for obligations by law
      and obligations for any benefits earned by the Executive or accrued for
      his benefit pursuant to any employee benefit plans maintained by the
      Post-Transaction Corporation or Affiliate with respect to services
      rendered by the Executive prior to the Termination Date.
    </p>
    <p style="text-indent: 120.0px">
      (c)&#160;Termination by Company for Reasons Other than Death, Disability, or
      Retirement; Termination by Executive for Good Reason.&#160;&#160;If, after a
      Change of Control and during the Employment Term, (1) the
      Post-Transaction Corporation or an Affiliate terminates the Executive&#8217;s
      status as an officer and employee other than for Cause, death, or
      Disability, or (2) the Executive terminates his status as an officer and
      employee for Good Reason, then, subject to&#160;&#160;Section 2.3(f) :&#160;
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (i)&#160;The Post-Transaction Corporation or an Affiliate will pay to the
      Executive the Accrued Salary;
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (ii)&#160;The Post-Transaction Corporation or an Affiliate will pay to the
      Executive in a lump sum in cash on the first business day that is more
      than six months after the Termination Date (A) the Pro Rata Bonus, and
      (B) an amount equal to one and one-half (1.5) times the sum of (x) the
      Executive&#8217;s Base Salary in effect at the Termination Date and (y) the
      highest annual bonus awarded to the Executive during the three fiscal
      years immediately preceding the Termination Date;
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="margin-left: 30.0px; text-indent: 180.0px">

    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (iii)&#160;For the period commencing on the Termination Date and ending on
      the earlier of (A) December 31st of the first calendar year following
      the calendar year in which the Termination Date occurs, or (B) the date
      that the Executive accepts new employment (the &#8220; Continuation Period &#8221;),
      the Post-Transaction Corporation or an Affiliate will at its expense
      maintain and administer for the continued benefit of Executive all
      insurance and welfare benefit plans in which Executive was entitled to
      participate as an employee as of the Termination Date; provided that
      Executive&#8217;s continued participation is possible under the general terms
      and provisions of such plans and all applicable laws.&#160;&#160;If the Executive
      is a &#8220;specified employee&#8221; governed by Section 2.7 hereof, to the extent
      that any benefits provided to the Executive under this Section
      2.3(c)(iii) are taxable to the Executive, then, with the exception of
      nontaxable medical insurance benefits, the value of the aggregate amount
      of such taxable benefits provided to the Executive pursuant to
      this&#160;&#160;Section 2.3(c)(iii)&#160;&#160;during the six-month period following the
      Termination Date shall be limited to the amount specified by Section
      402(g)(1)(B) of Code for the year in which the termination
      occurred.&#160;&#160;The Executive shall pay the cost of any benefits that exceed
      the amount specified in the previous sentence during the six month
      period following the date of termination, and shall be reimbursed in
      full by the Company during the seventh month after the Termination
      Date.&#160;&#160;The coverage and benefits (including deductibles and costs)
      provided under any such benefit plan in accordance with this paragraph
      during the Continuation Period will be no less favorable to Executive
      than the most favorable of such coverages and benefits as of the
      Termination Date.&#160;&#160;If Executive&#8217;s participation in any such benefit plan
      is barred or any such benefit plan is terminated, the Post-Transaction
      Corporation or its Affiliate will provide Executive with benefits
      substantially similar or comparable in value to those Executive would
      otherwise have been entitled to receive under such plans.&#160;&#160;At the end of
      the Continuation Period, the Executive will have the option to have
      assigned to him, at no cost and with no apportionment of prepaid
      premiums, any assignable insurance owned by the Post-Transaction
      Corporation or its Affiliate that relates specifically to the
      Executive.&#160;&#160;To the maximum extent permitted by law, the Executive will
      be eligible for coverage under COBRA at the end of the Continuation
      Period or earlier cessation of the Post-Transaction Corporation&#8217;s
      obligation under the foregoing provisions of this paragraph;
    </p>
    <p style="margin-left: 30.0px; text-indent: 180.0px">
      (iv)&#160;All benefits that the Executive is entitled to receive pursuant to
      benefit plans maintained by the Post-Transaction Corporation or an
      Affiliate under which benefits are calculated based upon years of
      service or age will be calculated by treating the Executive as having
      attained one and one-half (1.5) additional years of age and as having
      provided one and one-half (1.5) additional years of service as of the
      Termination Date; and
    </p>
    <p style="text-align: justify; margin-left: 30.0px; text-indent: 180.0px">
      (v)&#160;The Post-Transaction Corporation or an Affiliate will pay or
      deliver, as appropriate, all other benefits earned by the Executive or
      accrued for his benefit pursuant to any employee benefit plans
      maintained by the Post-Transaction Corporation or Affiliate with respect
      to services rendered by the Executive prior to the Termination Date.
    </p>
    <p style="text-indent: 120.0px">
      (d)&#160;Resignation from Board of Directors. If the Executive is a director
      of the Post-Transaction Corporation or any of its Affiliates and his
      status as an officer and employee is terminated for any reason other
      than death, the Executive will, if requested by the Post-Transaction
      Corporation, immediately resign as a director of the Post-Transaction
      Corporation and its Affiliates.&#160;&#160;If such resignation is not received
      within 20 business days after the Executive actually receives written
      notice from the Post-Transaction Corporation requesting the resignation,
      the Executive will forfeit any right to receive any payments pursuant to
      this Agreement.
    </p>
    <p style="text-indent: 120.0px">
      (e)&#160;Nondisclosure and Proprietary Rights. The rights and obligations of
      the Company and the Executive contained in Article III hereof will
      continue to apply notwithstanding a termination following a Change of
      Control.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-indent: 120.0px">

    </p>
    <p style="text-indent: 120.0px">
      (f)&#160;Most Favorable Benefits.&#160;&#160;It is the intention of the parties that
      the terms of this Agreement provide payments and benefits to the
      Executive that are equivalent or more beneficial to the Executive than
      are otherwise available to the Executive under the terms of any
      applicable benefit plan or related compensation agreement.&#160;&#160;To that end,
      the terms of the Agreement shall govern the payments and benefits to
      which the Executive shall be entitled upon the termination of the
      Executive&#8217;s status as an officer and employee as provided herein, except
      that if the terms of any applicable benefit plan or related compensation
      agreement provide more favorable benefits to the Executive than are
      provided hereunder, the terms of such plan or agreement shall control.
    </p>
    <p style="text-indent: 60.0px">
      <b>2.4</b>&#160;<b>Excise Tax Provision.</b>
    </p>
    <p style="text-indent: 120.0px">
      (a)&#160;Notwithstanding any other provisions of this Agreement, if a Change
      of Control occurs during the original or extended term of this
      Agreement, in the event that any payment or benefit received or to be
      received by the Executive in connection with the Change of Control of
      the Company or the termination of the Executive&#8217;s employment under this
      Agreement or any other agreement between the Company and the Executive
      (all such payments and benefits, including the payments and benefits
      under&#160;&#160;Section 2.3(c)&#160;&#160;hereof, being hereinafter called &#8220; Total Payments
      &#8221;) would be subject (in whole or in part), to an excise tax imposed by
      section 4999 of the Code (the &#8220; Excise Tax &#8221;), then the cash payments
      under&#160;&#160;Section 2.3(c)&#160;&#160;hereof shall first be reduced, and the noncash
      payments and benefits under the other sections hereof shall thereafter
      be reduced, to the extent necessary so that no portion of the Total
      Payments is subject to the Excise Tax but only if (A) the net amount of
      such Total Payments, as so reduced (and after subtracting the net amount
      of federal, state and local income and employment taxes on such reduced
      Total Payments) is greater than or equal to (B) the net amount of such
      Total Payments without such reduction (but after subtracting the net
      amount of federal, state and local income and employment taxes on such
      Total Payments and the amount of Excise Tax to which the Employee would
      be subject in respect of such unreduced Total Payments); provided,
      however, that the Executive may elect to have the noncash payments and
      benefits hereof reduced (or eliminated) prior to any reduction of the
      cash payments under Section 2.3(c) hereof.&#160;
    </p>
    <p style="text-indent: 120.0px">
      (b)&#160;For purposes of determining whether and the extent to which the
      Total Payments will be subject to the Excise Tax, (i) no portion of the
      Total Payments the receipt or enjoyment of which the Executive shall
      have waived at such time and in such manner as not to constitute a
      &#8220;payment&#8221; within the meaning of section 280G(b) of the Code shall be
      taken into account, (ii) no portion of the Total Payments shall be taken
      into account which, in the opinion of tax counsel (&#8220;Tax Counsel&#8221;)
      reasonably acceptable to the Executive and selected by the accounting
      firm (the &#8220;Auditor&#8221;) which was, immediately prior to a Change of Control
      or other event giving rise to a potential Excise Tax, the Company&#8217;s
      independent auditor, does not constitute a &#8220;parachute payment&#8221; within
      the meaning of section 280G(b)(2) of the Code (including by reason of
      section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax,
      no portion of such Total Payments shall be taken into account which, in
      the opinion of Tax Counsel, constitutes reasonable compensation for
      services actually rendered, within the meaning of section 280G(b)(4)(B)
      of the Code, in excess of the &#8220;Base Amount&#8221; (within the meaning set
      forth in section 280G(b)(3) of the Code) allocable to such reasonable
      compensation, and (iii) the value of any non cash benefit or any
      deferred payment or benefit included in the Total Payments shall be
      determined by the Auditor in accordance with the principles of sections
      280G(d)(3) and (4) of the Code.
    </p>
    <p style="text-indent: 120.0px">
      (c)&#160;At the time that payments are made under this Agreement, the
      Post-Transaction Corporation shall provide the Executive with a written
      statement setting forth the manner in which such payments were
      calculated and the basis for such calculations including, without
      limitation, any opinions or other advice the Post-Transaction
      Corporation has received from Tax Counsel, the Auditor, or other
      advisors or consultants (and any such opinions or advice which are in
      writing shall be attached to the statement).
    </p>
    <p style="text-align: justify">

    </p>
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        </div>
      </div>
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        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

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        </div>
      </div>
    </div>
    <p style="text-indent: 60.0px">

    </p>
    <p style="text-indent: 60.0px">
      <b>2.5</b>&#160;<b>Stock Options; Restricted Stock.&#160;&#160;</b>The
      foregoing benefits are intended to be in addition to the value of any
      options to acquire Common Stock of the Company, the exercisability of
      which is accelerated pursuant to the terms of any stock option
      agreement, any restricted stock the vesting of which is accelerated
      pursuant to the terms of the restricted stock agreement, and any other
      incentive or similar plan heretofore or hereafter adopted by the Company.
    </p>
    <p style="text-indent: 60.0px">
      <b>2.6</b>&#160;<b>Legal Fees</b>.&#160;&#160;The Company agrees to pay as
      incurred all legal fees and expenses that the Executive may reasonably
      incur as a result of any contest (regardless of the outcome thereof) by
      the Company, the Executive or others of the validity or enforceability
      of, or liability under, any provision of this Agreement (including as a
      result of any contest by the Executive about the amount or timing of any
      payment pursuant to this Agreement).
    </p>
    <p style="text-indent: 60.0px">
      <b>2.7</b>&#160;<b>Section 409A.</b>
    </p>
    <p style="text-indent: 120.0px">
      (a)&#160;It is the intention of the parties that payments or benefits payable
      under this Agreement not be subject to the additional tax imposed
      pursuant to Section 409A, and the provisions of this Agreement shall be
      construed and administered in accordance with such intent.&#160;&#160;To the
      extent any potential payments or benefits could become subject to
      Section 409A, the parties shall cooperate to amend this Agreement with
      the goal of giving the Executive the economic benefits described herein
      in a manner that does not result in such tax being imposed.&#160;&#160;If the
      parties are unable to agree on a mutually acceptable amendment, the
      Company may, without the Executive&#8217;s consent and in such manner as it
      deems appropriate, amend or modify this Agreement or delay the payment
      of any amounts hereunder to the minimum extent necessary to meet the
      requirements of Section 409A.
    </p>
    <p style="text-indent: 120.0px">
      (b)&#160;No payments or benefits provided herein that are paid because of a
      termination of employment under circumstances described herein shall be
      paid, unless such termination of employment also constitutes a
      &#8220;separation from service&#8221; within the meaning of Section 409A.
    </p>
    <p style="text-indent: 120.0px">
      (c)&#160;If Executive is a &#8220;specified employee,&#8221; any payments payable as a
      result of Executive&#8217;s termination of employment (other than as a result
      of death) shall not be payable before the earlier of (i) the first
      business day that is more than six months after Executive&#8217;s Termination
      Date, (ii) the date of Executive&#8217;s death, or (iii) the date that
      otherwise complies with the requirements of Section 409A.&#160;&#160;&#8220;Specified
      employee&#8221; shall mean the Executive if the Executive is a key employee
      under Treasury Regulations Section 1.409A-1(i) because of final and
      binding action taken by the Board or its compensation committee, or by
      operation of law or such regulation.
    </p>
    <p style="text-indent: 120.0px">
      (d)&#160;No acceleration of payments and benefits provided for in this
      Agreement shall be permitted, except that the Company may accelerate
      payment, if permitted by Section 409A, as necessary to allow the
      Executive to pay FICA taxes on amounts payable hereunder and additional
      taxes resulting from the payment of such FICA amount, or as necessary to
      pay taxes and penalties arising as a result of the payments provided for
      in this Agreement failing to meet the requirements of Section 409A.&#160;&#160;In
      no event shall the Executive, directly or indirectly, designate the
      calendar year of payment.
    </p>
    <p style="text-indent: 120.0px">
      (e)&#160;To the extent that the amounts payable under this Article II are
      reimbursements and other separation payments described under Treasury
      Regulations Section 1.409A-1(b)(9)(v), such payments do not provide for
      the deferral of compensation.&#160;&#160;If they do constitute deferral of
      compensation governed by Section 409A, they shall be deemed to be
      reimbursements or in-kind benefits governed by Treasury Regulations
      Section 1.409A-3(i)(1)(iv).&#160;&#160;If the previous sentence applies, (i) the
      amount of expenses eligible for reimbursement or in-kind benefits
      provided during the Executive&#8217;s taxable year shall not affect the
      expenses eligible for reimbursement or in-kind benefits in any other
      taxable year, (ii) the reimbursement of an eligible expense must be made
      on or before the last day of the Executive&#8217;s taxable year following the
      taxable year in which the expense was incurred, and (iii) the right to
      reimbursement or in-kind benefits shall not be subject to liquidation or
      exchange for another benefit.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
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        <div style="text-align: left">

        </div>
      </div>
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        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
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        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify">

    </p>
    <p style="text-align: center">
      <b>ARTICLE III</b><br><b>NONDISCLOSURE AND PROPRIETARY RIGHTS</b>
    </p>
    <p style="text-indent: 60.0px">
      <b>3.1</b>&#160;<b>Non-disclosure of Confidential Information.&#160;&#160;</b>Executive
      will hold in a fiduciary capacity for the benefit of the Company all
      Confidential Information obtained by Executive during Executive&#8217;s
      employment (whether prior to or after the Agreement Date) and will use
      such Confidential Information solely within the scope of his employment
      with and for the exclusive benefit of the Company.&#160;&#160;For a period of two
      years after the Termination Date, Executive agrees (a) not to
      communicate, divulge or make available to any person or entity (other
      than the Company) any such Confidential Information, except upon the
      prior written authorization of the Company or as may be required by law
      or legal process; and (b) to deliver promptly to the Company any
      Confidential Information in his possession, including any duplicates
      thereof and any notes or other records Executive has prepared with
      respect thereto.&#160;&#160;In the event that the provisions of any applicable law
      or the order of any court would require Executive to disclose or
      otherwise make available any Confidential Information, Executive will
      give the Company prompt prior written notice of such required disclosure
      and an opportunity to contest the requirement of such disclosure or
      apply for a protective order with respect to such Confidential
      Information by appropriate proceedings.
    </p>
    <p style="text-indent: 60.0px">
      <b>3.2</b>&#160;<b>Injunctive Relief; Other Remedies</b>.&#160;&#160;Executive
      acknowledges that a breach by Executive of Section 3.1 would cause
      immediate and irreparable harm to the Company for which an adequate
      monetary remedy does not exist; hence, Executive agrees that, in the
      event of a breach or threatened breach by Executive of the provisions
      of&#160;&#160;Section 3.1 , the Company will be entitled to injunctive relief
      restraining Executive from such violation without the necessity of proof
      of actual damage or the posting of any bond, except as required by non
      waivable, applicable law.&#160;&#160;Nothing herein, however, will be construed as
      prohibiting the Company from pursuing any other remedy at law or in
      equity to which the Company may be entitled under applicable law in the
      event of a breach or threatened breach of this Agreement by Executive,
      including without limitation the recovery of damages and/or costs and
      expenses, such as reasonable attorneys&#8217; fees, incurred by the Company as
      a result of any such breach or threatened breach.&#160;&#160;In addition to the
      exercise of the foregoing remedies, the Company will have the right upon
      the occurrence of any such breach to offset the damages of such breach
      as determined by the Company, against any unpaid salary, bonus,
      commissions, or reimbursements otherwise owed to Executive.&#160;&#160;In
      particular, Executive acknowledges that the payments provided under
      Article II are conditioned upon Executive fulfilling the nondisclosure
      agreements contained in this Article III.&#160;&#160;If Executive at any time
      materially breaches nondisclosure agreements contained in this Article
      III, then the Company may offset the damages of such breach, as
      determined solely by the Company, against payments otherwise due to
      Executive under Article II or, at the Company&#8217;s option, suspend payments
      otherwise due to Executive under Article II during the period of such
      breach.&#160;&#160;Executive acknowledges that any such offset or suspension of
      payments would be an exercise of the Company&#8217;s right to offset or
      suspend its performance hereunder upon Executive&#8217;s breach of this
      Agreement; such offset or suspension of payments would not constitute,
      and shall not be characterized as, the imposition of liquidated damages.
    </p>
    <p style="text-indent: 60.0px">
      <b>3.3</b>&#160;<b>Governing Law of this Article III; Consent to
      Jurisdiction.&#160;&#160;</b>Any dispute regarding the reasonableness of
      the covenants and agreements set forth in this&#160;&#160;Article III&#160;&#160;or duration
      thereof, or the remedies available to the Company upon any breach of
      such covenants and agreements, will be governed by and interpreted in
      accordance with the laws of the State of the United States or other
      jurisdiction in which the alleged prohibited disclosure occurs, and,
      with respect to each such dispute, the Company and Executive each hereby
      consent to the jurisdiction of the state and federal courts sitting in
      the relevant State (or, in the case of any jurisdiction outside the
      United States, the relevant courts of such jurisdiction) for resolution
      of such dispute, and agree that service of process may be made upon him
      or it in any legal proceeding relating to this&#160;&#160;Article III&#160;&#160;by any
      means allowed under the laws of such jurisdiction.
    </p>
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        </div>
      </div>
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        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-indent: 60.0px">

    </p>
    <p style="text-indent: 60.0px">
      <b>3.4</b>&#160;<b>Executive&#8217;s Understanding of this Article.&#160;&#160;</b>Executive
      hereby represents to the Company that he has read and understands, and
      agrees to be bound by, the terms of this Article III.&#160;&#160;Executive
      acknowledges that the duration of the covenants contained in Article III
      are the result of arm&#8217;s length bargaining and are fair and reasonable in
      light of (a) the importance of the functions performed by Executive and
      the length of time it would take the Company to find and train a
      suitable replacement, and (b) Executive&#8217;s level of control over and
      contact with the business and operations of the Company and its
      Affiliates in various jurisdictions where same are conducted.&#160;&#160;It is the
      desire and intent of the parties that the provisions of this Agreement
      be enforced to the fullest extent permitted under applicable law,
      whether now or hereafter in effect and, therefore, to the extent
      permitted by applicable law, the parties hereto waive any provision of
      applicable law that would render any provision of this Article III
      invalid or unenforceable.
    </p>
    <p style="text-align: center">
      <b>ARTICLE IV</b><br><b>MISCELLANEOUS</b>
    </p>
    <p style="text-indent: 60.0px">
      <b>4.1</b>&#160;<b>Binding Effect; Successors.</b>
    </p>
    <p style="text-indent: 120.0px">
      (a)&#160;This Agreement shall be binding upon and inure to the benefit of the
      Company and any of its successors or assigns.
    </p>
    <p style="text-indent: 120.0px">
      (b)&#160;This Agreement is personal to the Executive and shall not be
      assignable by the Executive without the consent of the Company (there
      being no obligation to give such consent) other than such rights or
      benefits as are transferred by will or the laws of descent and
      distribution.
    </p>
    <p style="text-indent: 120.0px">
      (c)&#160;The Company shall require any successor to or assignee of (whether
      direct or indirect, by purchase, merger, consolidation, or otherwise)
      all or substantially all of the assets or businesses of the Company (i)
      to assume unconditionally and expressly this Agreement and (ii) to agree
      to perform or to cause to be performed all of the obligations under this
      Agreement in the same manner and to the same extent as would have been
      required of the Company had no assignment or succession occurred, such
      assumption to be set forth in a writing reasonably satisfactory to the
      Executive.
    </p>
    <p style="text-indent: 120.0px">
      (d)&#160;The Company shall also require all entities that control or that
      after the transaction will control (directly or indirectly) the Company
      or any such successor or assignee to agree to cause to be performed all
      of the obligations under this Agreement, such agreement to be set forth
      in a writing reasonably satisfactory to the Executive.
    </p>
    <p style="text-indent: 60.0px">
      <b>4.2</b>&#160;<b>Notices.</b>&#160;&#160;All notices hereunder must be in
      writing and, unless otherwise specifically provided herein, will be
      deemed to have been given upon receipt of delivery by: (a) hand (against
      a receipt therefor), (b) certified or registered mail, postage prepaid,
      return receipt requested, (c) a nationally recognized overnight courier
      service (against a receipt therefor) or (d) telecopy transmission with
      confirmation of receipt.&#160;&#160;All such notices must be addressed as follows:
    </p>
<div style="text-align:left">
    <table style="width: 100%; margin-bottom: 10.0px; font-family: Times New Roman; font-size: 8pt" cellspacing="0">
      <tr>
        <td style="text-align: left; padding-left: 50.0px" colspan="2" valign="middle">
          If to the Company:
        </td>
        <td style="width: 60%">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="middle">

        </td>
        <td style="text-align: left; width: 60%; padding-left: 0.0px" valign="middle">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 10%; padding-left: 0.0px" valign="middle">
          &#160;
        </td>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="middle">
          Gulf Island Fabrication, Inc.
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 10%; padding-left: 0.0px" valign="middle">

        </td>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="middle">
          Attn: Kerry J. Chauvin, Chairman and CEO
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 10%; padding-left: 0.0px" valign="middle">

        </td>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="middle">
          567 Thompson Road
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 10%; padding-left: 0.0px" valign="middle">

        </td>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="middle">
          Houma, Louisiana 70363
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="middle">

        </td>
        <td style="text-align: left; width: 60%; padding-left: 0.0px" valign="middle">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 45.0px" colspan="3" valign="middle">
          If to the Executive:
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="middle">

        </td>
        <td style="text-align: left; width: 60%; padding-left: 0.0px" valign="middle">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 10%; padding-left: 0.0px" valign="middle">

        </td>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="middle">
          Roy F. Breerwood, III

          <p style="margin-bottom: 0px; margin-top: 0px">
            567 Thompson Road
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            Houma, Louisiana 70363
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: justify">
      or such other address as to which any party hereto may have notified the
      other in writing.
    </p>
    <p style="text-align: justify">

    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-indent: 60.0px">

    </p>
    <p style="text-indent: 60.0px">
      <b>4.3</b>&#160;<b>Governing Law.&#160;&#160;</b>Except as provided in
      Article III hereof, this Agreement shall be construed and enforced in
      accordance with and governed by the internal laws of the State of
      Louisiana without regard to principles of conflict of laws.
    </p>
    <p style="text-indent: 60.0px">
      <b>4.4</b>&#160;<b>Withholding.&#160;&#160;</b>The Executive agrees that
      the Company has the right to withhold, from the amounts payable pursuant
      to this Agreement, all amounts required to be withheld under applicable
      income and/or employment tax laws, or as otherwise stated in documents
      granting rights that are affected by this Agreement.
    </p>
    <p style="text-indent: 60.0px">
      <b>4.5</b>&#160;<b>Amendment; Waiver.</b>&#160;&#160;No provision of this
      Agreement may be modified, amended, or waived except by an instrument in
      writing signed by both parties, unless permitted by Section 2.7(a).
    </p>
    <p style="text-indent: 60.0px">
      <b>4.6</b>&#160;<b>Severability</b>.&#160;&#160;If any term or provision of this
      Agreement, or the application thereof to any person or circumstance,
      shall at any time or to any extent be invalid, illegal or unenforceable
      in any respect as written, Executive and the Company intend for any
      court construing this Agreement to modify or limit such provision so as
      to render it valid and enforceable to the fullest extent allowed by
      law.&#160;&#160;Any such provision that is not susceptible of such reformation
      shall be ignored so as to not affect any other term or provision hereof,
      and the remainder of this Agreement, or the application of such term or
      provision to persons or circumstances other than those as to which it is
      held invalid, illegal or unenforceable, shall not be affected thereby
      and each term and provision of this Agreement shall be valid and
      enforced to the fullest extent permitted by law.
    </p>
    <p style="text-indent: 60.0px">
      <b>4.7</b>&#160;<b>Waiver of Breach.</b>&#160;&#160;The waiver by either party of
      a breach of any provision of this Agreement shall not operate or be
      construed as a waiver of any subsequent breach thereof.
    </p>
    <p style="text-indent: 60.0px">
      <b>4.8</b>&#160;<b>Remedies Not Exclusive.&#160;&#160;</b>No remedy
      specified herein shall be deemed to be such party&#8217;s exclusive remedy,
      and accordingly, in addition to all of the rights and remedies provided
      for in this Agreement, the parties shall have all other rights and
      remedies provided to them by applicable law, rule or regulation.
    </p>
    <p style="text-indent: 60.0px">
      <b>4.9</b>&#160;<b>Company&#8217;s Reservation of Rights.&#160;&#160;</b>Executive
      acknowledges and understands that the Executive serves at the pleasure
      of the Board and that the Company has the right at any time to terminate
      Executive&#8217;s status as an employee of the Company or any of its
      Affiliates, or to change or diminish his status during the Employment
      Term, subject to the rights of the Executive to claim the benefits
      conferred by this Agreement.
    </p>
    <p style="text-indent: 60.0px">
      <b>4.10</b>&#160;<b>Counterparts.&#160;&#160;</b>This Agreement may be
      executed in one or more counterparts, each of which shall be deemed to
      be an original but all of which together shall constitute one and the
      same instrument.
    </p>
    <p style="text-align: center">
      * * * * *
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify; text-indent: 60.0px">

    </p>
    <p style="text-align: justify; text-indent: 60.0px">
      <b>IN WITNESS WHEREOF</b>, the Company and the Executive have caused
      this Agreement to be executed as of the Agreement Date.
    </p>
    <p style="text-align: justify">

    </p>
<div style="text-align:left">
    <table style="width: 100%; margin-bottom: 10.0px; font-family: Times New Roman; font-size: 8pt" cellspacing="0">
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>GULF ISLAND FABRICATION, INC.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 30%">

        </td>
        <td style="width: 70%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 30%">

        </td>
        <td style="width: 70%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 30%; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Kerry J. Chauvin
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 70%">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 30%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Kerry J. Chauvin
          </p>
        </td>
        <td style="width: 70%">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Chairman of the Board and Chief Executive Officer
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 30%">

        </td>
        <td style="width: 70%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 30%">

        </td>
        <td style="width: 70%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 30%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>EXECUTIVE</b>
          </p>
        </td>
        <td style="width: 70%">

        </td>
      </tr>
      <tr>
        <td style="width: 30%">

        </td>
        <td style="width: 70%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 30%">

        </td>
        <td style="width: 70%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 30%; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Roy F. Breerwood, III
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 70%">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 30%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Roy F. Breerwood, III
          </p>
        </td>
        <td style="width: 70%">

        </td>
      </tr>
      <tr>
        <td style="width: 30%">

        </td>
        <td style="width: 70%">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
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