Document:

<PAGE>
                                                                    EXHIBIT 10.2

                           UNIFAB INTERNATIONAL, INC.
                            LONG-TERM INCENTIVE PLAN

marked to show amendments to the Plan adopted at the Company's Annual Meeting of
Shareholders held on December 27, 2002. Added provisions are in BOLDED and
ITALICIZED print; deleted provisions are in [brackets].

         1. PURPOSE. The purpose of the Long-Term Incentive Plan (the "Plan") of
UNIFAB International, Inc. ("UNIFAB") is to increase shareholder value and to
advance the interests of UNIFAB and its subsidiaries (collectively, the
"Company") by furnishing a variety of economic incentives (the "Incentives")
designed to attract, retain and motivate key employees, officers and directors
and to strengthen the mutuality of interests between such employees, officers
and directors and UNIFAB's shareholders. Incentives consist of opportunities to
purchase or receive shares of common stock, $.01 par value per share, of UNIFAB
(the "Common Stock"), on terms determined under the Plan. As used in the Plan,
the term "subsidiary" means any corporation of which UNIFAB owns (directly or
indirectly) within the meaning of Section 425(f) of the Internal Revenue Code of
1986, as amended (the "Code"), 50% or more of the total combined voting power of
all classes of stock.

         2.       ADMINISTRATION.

                  2.1. COMPOSITION. The Plan shall be administered by the
         Compensation Committee of the Board of Directors of UNIFAB or by a
         subcommittee thereof (the "Committee"). The Committee shall consist of
         not fewer than two members of the Board of Directors, each of whom
         shall (a) qualify as a "non-employee director" under Rule 16b-3 under
         the Securities Exchange Act of 1934 (the "1934 Act") or any successor
         rule, and (b) qualify as an "outside director" under Section 162(m) of
         the Code.

                  2.2. AUTHORITY. The Committee shall have plenary authority to
         award Incentives under the Plan, to interpret the Plan, to establish
         any rules or regulations relating to the Plan that it determines to be
         appropriate, to enter into agreements with participants as to the terms
         of the Incentives (the "Incentive Agreements") and to make any other
         determination that it believes necessary or advisable for the proper
         administration of the Plan. Its decisions in matters relating to the
         Plan shall be final and conclusive on the Company and participants. The
         Committee may delegate its authority hereunder to the extent provided
         in Section 3 hereof. The Committee shall not have authority to award
         Incentives under the Plan to directors who are not also employees of
         the Company ("Outside Directors"). Outside Directors may receive awards
         under the Plan only as specifically provided in Section 9 hereof.

         3. ELIGIBLE PARTICIPANTS. Key employees, officers, consultants and
advisors of the Company (including officers who also serve as directors of the
Company) shall become eligible to

                                      -1-
<PAGE>

receive Incentives under the Plan when designated by the Committee. Employees
may be designated individually or by groups or categories, as the Committee
deems appropriate. With respect to participants not subject to Section 16 of the
1934 Act or Section 162(m) of the Code, the Committee may delegate to
appropriate personnel of the Company its authority to designate participants, to
determine the size and type of Incentives to be received by those participants
and to determine or modify performance objectives for those participants.
Outside Directors may participate in the Plan only as specifically provided in
Section 9 hereof.

         4. TYPES OF INCENTIVES. Incentives may be granted under the Plan to
eligible participants in any of the following forms, either individually or in
combination, (a) incentive stock options and non-qualified stock options; (b)
restricted stock; and (c) other stock-based awards ("Other Stock-Based Awards").

         5.       SHARES SUBJECT TO THE PLAN.

                  5.1. NUMBER OF SHARES. Subject to adjustment as provided in
         Section 10.5, a total of 2,500,000 [460,000] shares of Common Stock are
         authorized to be issued under the Plan. Incentives with respect to no
         more than 250,000 [200,000] shares of Common Stock may be granted
         through the Plan to a single participant in one calendar year. In the
         event that an Incentive granted hereunder expires or is terminated or
         cancelled prior to exercise or payment, any shares of Common Stock that
         were issuable thereunder may again be issued under the Plan. In the
         event that shares of Common Stock are issued as Incentives under the
         Plan and thereafter are forfeited or reacquired by the Company pursuant
         to rights reserved upon issuance thereof, such forfeited and reacquired
         shares may again be issued under the Plan. If an Other Stock-Based
         Award is to be paid in cash by its terms, the Committee need not make a
         deduction from the shares of Common Stock issuable under the Plan with
         respect thereto. If and to the extent that an Other Stock-Based Award
         may be paid in cash or shares of Common Stock, the total number of
         shares available for issuance hereunder shall be debited by the number
         of shares payable under such Incentive, provided that upon any payment
         of all or part of such Incentive in cash, the total number of shares
         available for issuance hereunder shall be credited with the appropriate
         number of shares represented by the cash payment, as determined in the
         sole discretion of the Committee. Additional rules for determining the
         number of shares granted under the Plan may be made by the Committee,
         as it deems necessary or appropriate.

                  5.2. TYPE OF COMMON STOCK. Common Stock issued under the Plan
         may be authorized and unissued shares or issued shares held as treasury
         shares.

         6. STOCK OPTIONS. A stock option is a right to purchase shares of
Common Stock from UNIFAB. Stock options granted under this Plan may be incentive
stock options or non-qualified stock options. Any option that is designated as a
non-qualified stock option shall not be treated as an incentive stock option.
Each stock option granted by the Committee under this Plan shall be subject to
the following terms and conditions:

                                      -2-
<PAGE>

                  6.1. PRICE. The exercise price per share shall be determined
         by the Committee, subject to adjustment under Section 10.5; provided
         that in no event shall the exercise price be less than the Fair Market
         Value of a share of Common Stock on the date of grant, except that in
         connection with an acquisition, consolidation, merger or other
         extraordinary transaction, options may be granted at less than the then
         Fair Market Value in order to replace options previously granted by one
         or more parties to such transaction (or their affiliates) so long as
         the aggregate spread on such replacement options for any recipient of
         such options is equal to or less than the aggregate spread on the
         options being replaced.

                  6.2. NUMBER. The number of shares of Common Stock subject to
         the option shall be determined by the Committee, subject to Section 5.1
         and subject to adjustment as provided in Section 10.5.

                  6.3. DURATION AND TIME FOR EXERCISE. The term of each stock
         option shall be determined by the Committee. Each stock option shall
         become exercisable at such time or times during its term as shall be
         determined by the Committee. Notwithstanding the foregoing, the
         Committee may accelerate the exercisability of any stock option at any
         time, in addition to the automatic acceleration of stock options under
         Section 10.11.

                  6.4. MANNER OF EXERCISE. A stock option may be exercised, in
         whole or in part, by giving written notice to the Company, specifying
         the number of shares of Common Stock to be purchased. The exercise
         notice shall be accompanied by the full purchase price for such shares.
         The option price shall be payable in United States dollars and may be
         paid by (a) cash; (b) uncertified or certified check; (c) unless
         otherwise determined by the Committee, by delivery of shares of Common
         Stock held by the optionee for at least six months, which shares shall
         be valued for this purpose at the Fair Market Value on the business day
         immediately preceding the date such option is exercised; (d) unless
         otherwise determined by the Committee, by delivering a properly
         executed exercise notice together with irrevocable instructions to a
         broker approved by UNIFAB (with a copy to UNIFAB) to promptly deliver
         to UNIFAB the amount of sale or loan proceeds to pay the exercise
         price; or (e) in such other manner as may be authorized from time to
         time by the Committee.

                  6.5. INCENTIVE STOCK OPTIONS. Notwithstanding anything in the
         Plan to the contrary, the following additional provisions shall apply
         to the grant of stock options that are intended to qualify as Incentive
         Stock Options (as such term is defined in Section 422 of the Code):

                           A. Any Incentive Stock Option agreement authorized
                  under the Plan shall contain such other provisions as the
                  Committee shall deem advisable, but shall in all events be
                  consistent with and contain or be deemed to contain all
                  provisions required in order to qualify the options as
                  Incentive Stock Options.

                           B. All Incentive Stock Options must be granted within
                  ten years from the date on which this Plan is adopted by the
                  Board of Directors.

                                      -3-
<PAGE>

                           C. Unless sooner exercised, all Incentive Stock
                  Options shall expire no later than ten years after the date of
                  grant.

                           D. No Incentive Stock Options shall be granted to any
                  participant who, at the time such option is granted, would own
                  (within the meaning of Section 422 of the Code) stock
                  possessing more than 10% of the total combined voting power of
                  all classes of stock of the employer corporation or of its
                  parent or subsidiary corporation.

                           E. The aggregate Fair Market Value (determined with
                  respect to each Incentive Stock Option as of the time such
                  Incentive Stock Option is granted) of the Common Stock with
                  respect to which Incentive Stock Options are exercisable for
                  the first time by a participant during any calendar year
                  (under the Plan or any other plan of UNIFAB or any of its
                  subsidiaries) shall not exceed $100,000. To the extent that
                  such limitation is exceeded, such options shall not be
                  treated, for federal income tax purposes, as Incentive Stock
                  Options.

         7.       RESTRICTED STOCK.

                  7.1. GRANT OF RESTRICTED STOCK. The Committee may award shares
         of restricted stock to such officers and key employees as the Committee
         determines pursuant to the terms of Section 3. An award of restricted
         stock shall be subject to such restrictions on transfer and
         forfeitability provisions and such other terms and conditions as the
         Committee may determine, subject to the provisions of the Plan. An
         award of restricted stock may also be subject to the attainment of
         specified performance goals or targets. To the extent restricted stock
         is intended to qualify as performance-based compensation under Section
         162(m) of the Code, it must be granted subject to the attainment of
         performance goals as described in Section 7.2 below and meet the
         additional requirements imposed by Section 162(m).

                  7.2 PERFORMANCE-BASED RESTRICTED STOCK. To the extent that
         restricted stock granted under the Plan is intended to vest based upon
         the achievement of pre-established performance goals rather than solely
         upon continued employment over a period of time, the performance goals
         pursuant to which the restricted stock shall vest shall be any or a
         combination of the following performance measures: earnings per share,
         return on assets, an economic value added measure, shareholder return,
         earnings, stock price, return on equity, return on total capital,
         safety performance, reduction of expenses or increase in cash flow of
         UNIFAB, a division of UNIFAB or a subsidiary. For any performance
         period, such performance objectives may be measured on an absolute
         basis or relative to a group of peer companies selected by the
         Committee, relative to internal goals or relative to levels attained in
         prior years. The Committee may not waive any of the pre-established
         performance goal objectives, except that such objectives shall be
         waived as provided in Section 10.11 hereof, or as may be provided by
         the Committee in the event of death, disability or retirement.

                  7.3. THE RESTRICTED PERIOD. At the time an award of restricted
         stock is made, the Committee shall establish a period of time during
         which the transfer of the shares of restricted stock shall be
         restricted (the "Restricted Period"). The Restricted Period shall be a

                                      -4-
<PAGE>

         minimum of three years, except that if the vesting of the shares of
         restricted stock is based upon the attainment of performance goals, a
         minimum Restricted Period of one year is permitted. Each award of
         restricted stock may have a different Restricted Period. The expiration
         of the Restricted Period shall also occur as provided under Section
         10.3 and under the conditions described in Section 10.11 hereof.

                  7.4. ESCROW. The participant receiving restricted stock shall
         enter into an Incentive Agreement with the Company setting forth the
         conditions of the grant. Certificates representing shares of restricted
         stock shall be registered in the name of the participant and deposited
         with the Company, together with a stock power endorsed in blank by the
         participant. Each such certificate shall bear a legend in substantially
         the following form:

                  The transferability of this certificate and the shares of
                  Common Stock represented by it are subject to the terms and
                  conditions (including conditions of forfeiture) contained in
                  the UNIFAB International, Inc. Long-Term Incentive Plan (the
                  "Plan"), and an agreement entered into between the registered
                  owner and UNIFAB International, Inc. thereunder. Copies of the
                  Plan and the agreement are on file at the principal office of
                  UNIFAB International, Inc.

                  7.5. DIVIDENDS ON RESTRICTED STOCK. Any and all cash and stock
         dividends paid with respect to the shares of restricted stock shall be
         subject to any restrictions on transfer, forfeitability provisions or
         reinvestment requirements as the Committee may, in its discretion,
         prescribe in the Incentive Agreement.

                  7.6. FORFEITURE. In the event of the forfeiture of any shares
         of restricted stock under the terms provided in the Incentive Agreement
         (including any additional shares of restricted stock that may result
         from the reinvestment of cash and stock dividends, if so provided in
         the Incentive Agreement), such forfeited shares shall be surrendered
         and the certificates cancelled. The participants shall have the same
         rights and privileges, and be subject to the same forfeiture
         provisions, with respect to any additional shares received pursuant to
         Section 10.5 due to a recapitalization, merger or other change in
         capitalization.

                  7.7. EXPIRATION OF RESTRICTED PERIOD. Upon the expiration or
         termination of the Restricted Period and the satisfaction of any other
         conditions prescribed by the Committee, the restrictions applicable to
         the restricted stock shall lapse and a stock certificate for the number
         of shares of restricted stock with respect to which the restrictions
         have lapsed shall be delivered, free of all such restrictions and
         legends, except any that may be imposed by law, to the participant or
         the participant's estate, as the case may be.

                  7.8. RIGHTS AS A SHAREHOLDER. Subject to the terms and
         conditions of the Plan and subject to any restrictions on the receipt
         of dividends that may be imposed in the Incentive Agreement, each
         participant receiving restricted stock shall have all the rights of a
         shareholder with respect to shares of stock during the Restricted
         Period, including without limitation, the right to vote any shares of
         Common Stock.

                                      -5-
<PAGE>

         8.       OTHER STOCK-BASED AWARDS.

                  8.1 TERMS OF OTHER STOCK-BASED AWARDS. The Committee is hereby
         authorized to grant to eligible employees an "Other Stock-Based Award",
         which shall consist of an award, the value of which is based in whole
         or in part on the value of shares of Common Stock, that is not an
         instrument or Award specified in Sections 6 or 7 of the Plan. Other
         Stock-Based Awards may be awards of shares of Common Stock or may be
         denominated or payable in, valued in whole or in part by reference to,
         or otherwise based on or related to, shares of Common Stock (including,
         without limitation, securities convertible or exchangeable into or
         exercisable for shares of Common Stock), as deemed by the Committee
         consistent with the purposes of the Plan. The Committee shall determine
         the terms and conditions of any such Other Stock-Based Award and may
         provide that such awards would be payable in whole or in part in cash.
         Except in the case of an Other Stock-Based Award granted in assumption
         of or in substitution for an outstanding award of a company acquired by
         the Company or with which the Company combines, the price at which
         securities may be purchased pursuant to any Other Stock-Based Award
         granted under this Plan, or the provision, if any, of any such award
         that is analogous to the purchase or exercise price, shall not be less
         than 100% of the fair market value of the securities to which such
         award relates on the date of grant.

                  8.2 DIVIDEND EQUIVALENTS. In the sole and complete discretion
         of the Committee, an Other Stock-Based Award under this Section 8 may
         provide the holder thereof with dividends or dividend equivalents,
         payable in cash or shares of Common Stock on a current or deferred
         basis.

                  8.3 PERFORMANCE GOALS. Other Stock-Based Awards intended to
         qualify as "performance-based compensation" under Section 162(m) of the
         Code shall be paid based upon the achievement of pre-established
         performance goals. The performance goals pursuant to which Other
         Stock-Based Awards granted under the Plan shall be earned shall be any
         or a combination of the following performance measures: earnings per
         share, return on assets, an economic value added measure, shareholder
         return, earnings, stock price, return on equity, return on total
         capital, safety performance, reduction of expenses or increase in cash
         flow of the Company, a division of the Company or a subsidiary. For any
         performance period, such performance goals may be measured on an
         absolute basis or relative to a group of peer companies selected by the
         Committee, relative to internal goals or relative to levels attained in
         prior years. The Committee may not waive any of the pre-established
         performance goal objectives if such Other Stock-Based Award is intended
         to constitute "performance-based compensation" under Section 162(m),
         except that such objectives shall be waived as provided in Section
         10.11 hereof, or as may be provided by the Committee in the event of
         death, disability or retirement.

                  8.4. NOT A SHAREHOLDER. The grant of an Other Stock-Based
         Award to a participant shall not create any rights in such participant
         as a shareholder of the Company,

                                      -6-
<PAGE>

         until the issuance of shares of Common Stock with respect to an award,
         at which time such stock shall be considered issued and outstanding.

         9.       STOCK OPTIONS FOR OUTSIDE DIRECTORS.

                  9.1 GRANT OF OPTIONS. Upon consummation of the Company's
         initial public offering (the "IPO") of its Common Stock, each Outside
         Directors shall be granted non-qualified options to purchase 2,500
         shares of Common Stock. In addition, beginning with the 1998 annual
         meeting of shareholders and for as long as the Plan remains in effect
         and shares of Common Stock remain available for issuance hereunder,
         each Outside Director shall be automatically granted a non-qualified
         stock option on the day of the annual meeting of stockholders of
         UNIFAB, provided such Outside Director continues to serve as a director
         after such annual meeting. An option to purchase no more than 2,500
         shares shall be automatically granted to each Outside Director on the
         date of each annual meeting, the exact number of which shall be set by
         the Committee.

                  9.2 EXERCISABILITY OF STOCK OPTIONS. The stock options granted
         to Outside Directors under this Section 9 shall become exercisable
         immediately and shall expire ten years following the date of grant.

                  9.3 EXERCISE PRICE. The exercise price of the options granted
         upon consummation of the IPO shall be equal to the IPO price. The
         exercise price of the options granted to Outside Directors on the date
         of each annual meeting shall be equal to the Fair Market Value, as
         defined in the Plan, of a share of Common Stock on the date of grant.
         The exercise price may be paid as provided in Section 6.4 hereof.

                  9.4 EXERCISE AFTER TERMINATION OF BOARD SERVICE. In the event
         an Outside Director ceases to serve on the Board, the stock options
         granted hereunder must be exercised, to the extent otherwise
         exercisable at the time of termination of Board service, within one
         year from termination of Board service; provided, however, that in the
         event of termination of Board service as a result of retirement on or
         after reaching age 65, the stock options must be exercised within five
         years from the date of retirement; and further provided, that no stock
         options may be exercised later than ten years after the date of grant.

         10.      GENERAL.

                  10.1. DURATION. Subject to Section 10.10, the Plan shall
         remain in effect until all Incentives granted under the Plan have
         either been satisfied by the issuance of shares of Common Stock or the
         payment of cash or been terminated under the terms of the Plan and all
         restrictions imposed on shares of Common Stock in connection with their
         issuance under the Plan have lapsed.

                  10.2. TRANSFERABILITY. No Incentives granted hereunder may be
         transferred, pledged, assigned or otherwise encumbered by a participant
         except: (a) by will; (b) by the laws of descent and distribution; (c)
         pursuant to a domestic relations order, as defined in the

                                      -7-
<PAGE>

         Code, if permitted by the Committee and so provided in the Incentive
         Agreement or an amendment thereto; or (d) as to options only, if
         permitted by the Committee and so provided in the Incentive Agreement
         or an amendment thereto, (i) to Immediate Family Members, (ii) to a
         partnership in which Immediate Family Members, or entities in which
         Immediate Family Members are the sole owners, members or beneficiaries,
         as appropriate, are the sole partners, (iii) to a limited liability
         company in which Immediate Family Members, or entities in which
         Immediate Family Members are the sole owners, members or beneficiaries,
         as appropriate, are the sole members, or (iv) to a trust for the sole
         benefit of Immediate Family Members. "Immediate Family Members" shall
         be defined as the spouse and natural or adopted children or
         grandchildren of the participant and their spouses. To the extent that
         an Incentive Stock Option is permitted to be transferred during the
         lifetime of the participant, it shall be treated thereafter as a
         nonqualified stock option. Any attempted assignment, transfer, pledge,
         hypothecation or other disposition of Incentives, or levy of attachment
         or similar process upon Incentives not specifically permitted herein,
         shall be null and void and without effect.

                  10.3. EFFECT OF TERMINATION OF EMPLOYMENT OR DEATH. Except as
         provided in Section 9.4 with respect to Outside Directors, in the event
         that a participant ceases to be an employee of the Company for any
         reason, including death, disability, early retirement or normal
         retirement, any Incentives may be exercised, shall vest or shall expire
         at such times as may be determined by the Committee in the Incentive
         Agreement. The Committee has complete authority to modify the treatment
         of an Incentive in the event of termination of employment of a
         participant by means of an amendment to the Incentive Agreement.
         Consent of the participant to the modification is required only if the
         modification materially impairs the rights previously provided to the
         participant in the Incentive Agreement.

                  10.4. ADDITIONAL CONDITION. Anything in this Plan to the
         contrary notwithstanding: (a) the Company may, if it shall determine it
         necessary or desirable for any reason, at the time of award of any
         Incentive or the issuance of any shares of Common Stock pursuant to any
         Incentive, require the recipient of the Incentive, as a condition to
         the receipt thereof or to the receipt of shares of Common Stock issued
         pursuant thereto, to deliver to the Company a written representation of
         present intention to acquire the Incentive or the shares of Common
         Stock issued pursuant thereto for his own account for investment and
         not for distribution; and (b) if at any time the Company further
         determines, in its sole discretion, that the listing, registration or
         qualification (or any updating of any such document) of any Incentive
         or the shares of Common Stock issuable pursuant thereto is necessary on
         any securities exchange or under any federal or state securities or
         blue sky law, or that the consent or approval of any governmental
         regulatory body is necessary or desirable as a condition of, or in
         connection with the award of any Incentive, the issuance of shares of
         Common Stock pursuant thereto, or the removal of any restrictions
         imposed on such shares, such Incentive shall not be awarded or such
         shares of Common Stock shall not be issued or such restrictions shall
         not be removed, as the case may be, in whole or in part, unless such
         listing, registration, qualification, consent or approval shall have
         been effected or obtained free of any conditions not acceptable to the
         Company.

                  10.5. ADJUSTMENT. In the event of any merger, consolidation or
         reorganization of the Company with any other corporation or
         corporations, there shall be substituted for each

                                      -8-
<PAGE>

         of the shares of Common Stock then subject to the Plan, including
         shares subject to restrictions, options or achievement of performance
         objectives, the number and kind of shares of stock or other securities
         to which the holders of the shares of Common Stock will be entitled
         pursuant to the transaction. In the event of any recapitalization,
         stock dividend, stock split, combination of shares or other change in
         the Common Stock, the number of shares of Common Stock then subject to
         the Plan, including shares subject to outstanding Incentives, shall be
         adjusted in proportion to the change in outstanding shares of Common
         Stock. In the event of any such adjustments, the purchase price of any
         option, the performance objectives of any Incentive, and the shares of
         Common Stock issuable pursuant to any Incentive shall be adjusted as
         and to the extent appropriate, in the reasonable discretion of the
         Committee, to provide participants with the same relative rights before
         and after such adjustment. No substitution or adjustment shall require
         the Company to issue a fractional share under this Plan and the
         substitution or adjustment shall be limited by deleting any fractional
         share.

                  10.6. INCENTIVE AGREEMENTS. The terms of each Incentive shall
         be stated in an agreement approved by the Committee.

                  10.7.    WITHHOLDING.

                           A. The Company shall have the right to withhold from
                  any payments made under the Plan or to collect as a condition
                  of payment, any taxes required by law to be withheld. At any
                  time that a participant is required to pay to the Company an
                  amount required to be withheld under applicable income tax
                  laws in connection with the issuance of Common Stock, the
                  lapse of restrictions on Common Stock or the exercise of an
                  option, the participant may, subject to disapproval by the
                  Committee, satisfy this obligation in whole or in part by
                  electing (the "Election") to have the Company withhold shares
                  of Common Stock having a value equal to the amount required to
                  be withheld. The value of the shares to be withheld shall be
                  based on the Fair Market Value of the Common Stock on the date
                  that the amount of tax to be withheld shall be determined
                  ("Tax Date").

                           B. Each Election must be made prior to the Tax Date.
                  The Committee may disapprove of any Election, may suspend or
                  terminate the right to make Elections, or may provide with
                  respect to any Incentive that the right to make Elections
                  shall not apply to such Incentive. If a participant makes an
                  election under Section 83(b) of the Internal Revenue Code with
                  respect to shares of restricted stock, an Election is not
                  permitted to be made.

                  10.8. NO CONTINUED EMPLOYMENT. No participant under the Plan
         shall have any right, because of his or her participation, to continue
         in the employ of the Company for any period of time or to any right to
         continue his or her present or any other rate of compensation.

                  10.9. DEFERRAL PERMITTED. Payment of cash or distribution of
         any shares of Common Stock to which a participant is entitled under any
         Incentive shall be made as

                                      -9-
<PAGE>

         provided in the Incentive Agreement. Payment may be deferred at the
         option of the participant if provided in the Incentive Agreement.

                  10.10.   AMENDMENTS TO OR TERMINATION OF THE PLAN.

                           A. The Board may amend, suspend or terminate the Plan
                  or any portion thereof at any time, provided that no amendment
                  shall be made without stockholder approval if such approval is
                  necessary to comply with any tax or regulatory requirement,
                  including any approval necessary to qualify Incentives as
                  "performance-based" compensation under Section 162(m) or any
                  successor provision, if such qualification is deemed necessary
                  or advisable by the Committee.

                           B. Any provision of this Plan or any Incentive
                  Agreement to the contrary notwithstanding, the Committee may
                  cause any Incentive granted hereunder to be cancelled in
                  consideration of a cash payment or alternative Incentive made
                  to the holder of such cancelled Incentive equal in value to
                  such cancelled Incentive. The determinations of value under
                  this subparagraph shall be made by the Committee in its sole
                  discretion.

                  10.11.   CHANGE OF CONTROL.

                           A.       "Change of Control" shall mean:

                                    1. the acquisition by any individual, entity
                           or group (within the meaning of Section 13(d)(3) or
                           14(d)(2) of the 1934 Act of beneficial ownership
                           (within the meaning of Rule 13d-3 promulgated under
                           the 1934 Act) of more than 30% of the outstanding
                           shares of the Common Stock; provided, however, that
                           for purposes of this subsection 1., the following
                           shall not constitute a Change of Control:

                                             (a) any acquisition of Common Stock
                                    directly from UNIFAB,

                                             (b) any acquisition of Common Stock
                                    by UNIFAB,

                                             (c) any acquisition of Common Stock
                                    by any employee benefit plan (or related
                                    trust) sponsored or maintained by UNIFAB or
                                    any corporation controlled by UNIFAB, or

                                             (d) any acquisition of Common Stock
                                    by any corporation pursuant to a transaction
                                    that complies with clauses (a), (b) and (c)
                                    of subsection (A)(3) of this Section 10.11;
                                    or

                                    2. individuals who, as of the date of
                           adoption of the Plan by the Board of Directors of
                           UNIFAB (the "Adoption Date"), constitute the Board

                                      -10-
<PAGE>

                           (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 the Adoption Date whose
                           election, or nomination for election by the Company's
                           shareholders, was approved by a vote of at least a
                           majority of the directors then comprising the
                           Incumbent Board shall be considered a member of the
                           Incumbent Board, unless such individual'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

                                    3. approval by the stockholders of UNIFAB of
                           a reorganization, merger or consolidation, or sale or
                           other disposition of all of substantially all of the
                           assets of the Company (a "Business Combination"), in
                           each case, unless, following such Business
                           Combination,

                                            (a) all or substantially all of the
                                    individuals and entities who were the
                                    beneficial owners of UNIFAB's outstanding
                                    common stock and UNIFAB'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 corporation resulting from such
                                    Business Combination (which, for purposes of
                                    this paragraph (a) and paragraphs (b) and
                                    (c), shall include a corporation which as a
                                    result of such transaction controls the
                                    Company or all or substantially all of the
                                    Company's assets either directly or through
                                    one or more subsidiaries), and

                                            (b) except to the extent that such
                                    ownership existed prior to the Business
                                    Combination, no person (excluding any
                                    corporation resulting from such Business
                                    Combination or any employee benefit plan or
                                    related trust of the Company or such
                                    corporation resulting from such Business
                                    Combination) beneficially owns, directly or
                                    indirectly, 30% or more of the then
                                    outstanding shares of common stock of the
                                    corporation resulting from such Business
                                    Combination or 30% or more of the combined
                                    voting power of the then outstanding voting
                                    securities of such corporation, and

                                            (c) at least a majority of the
                                    members of the board of directors of the
                                    corporation resulting from such Business
                                    Combination were members of the Incumbent
                                    Board at the time of the execution of the
                                    initial agreement, or of the action of the
                                    Board, providing for such Business
                                    Combination; or

                                      -11-
<PAGE>
                                    4. approval by the shareholders of the
                           Company of a complete liquidation or dissolution of
                           the Company.

                           B. Upon a Change of Control, all outstanding options
                  shall automatically become fully exercisable, all restrictions
                  or limitations on any Incentives shall lapse and all
                  performance criteria and other conditions relating to the
                  payment of Incentives shall be deemed to be achieved or waived
                  by the Company, without the necessity of any action by any
                  person.

                           C. No later than 30 days after the approval by the
                  Board of a Change of Control of the types described in
                  Subsections A.3 and A.4 of this Section 10.11, and no later
                  than 30 days after a Change of Control of the type described
                  in Subsections A.1 and A.2 of this Section 10.11 of the Plan,
                  the Committee (as the Committee was composed immediately prior
                  to such Change of Control and notwithstanding any removal or
                  attempted removal of some or all of the members thereof as
                  directors or Committee members), acting in its sole discretion
                  without the consent or approval of any participant, may act to
                  effect one or more of the alternatives listed below and such
                  act by the Committee may not be revoked or rescinded by
                  persons not members of the Committee immediately prior to the
                  Change of Control:

                                    1. require that all outstanding options be
                           exercised on or before a specified date (before or
                           after such Change of Control) fixed by the Committee,
                           after which specified date all unexercised options
                           shall terminate,

                                    2. provide for mandatory conversion of some
                           or all of the outstanding options held by some or all
                           participants as of a date, before or after such
                           Change of Control, specified by the Committee, in
                           which event such options shall be deemed
                           automatically cancelled and UNIFAB shall pay, or
                           cause to be paid, to each such participant an amount
                           of cash per share equal to the excess, if any, of the
                           Change of Control Value of the shares subject to such
                           option, as defined and calculated below, over the
                           exercise price(s) of such options, or, in lieu of
                           such cash payment, the issuance of Common Stock or
                           securities of an acquiring entity having a Fair
                           Market Value equal to such excess,

                                    3. make such equitable adjustments to
                           Incentives then outstanding as the Committee deems
                           appropriate to reflect such Change of Control
                           (provided, however, that the Committee may determine
                           in its sole discretion that no adjustment is
                           necessary), or

                                    4. provide that thereafter upon any exercise
                           of an option the participant shall be entitled to
                           purchase under such option, in lieu of the number of
                           shares of Common Stock then covered by such option,
                           the number and class of shares of stock or other
                           securities or property (including, without

                                      -12-
<PAGE>

                           limitation, cash) to which the participant would have
                           been entitled pursuant to the terms of the agreement
                           providing for the merger, consolidation, asset sale,
                           dissolution or other Change of Control of the type
                           described in Sections 10.11.A.3 and A.4 of the Plan,
                           if, immediately prior to such Change of Control, the
                           participant had been the holder of record of the
                           number of shares of Common Stock then covered by such
                           options.

                           D. For the purposes of paragraph 2. of Section
                  10.11.C. the "Change of Control Value" shall equal the amount
                  determined by whichever of the following items is applicable:

                                1. the per share price to be paid to
                           shareholders of UNIFAB in any such merger,
                           consolidation or other reorganization,

                                2. the price per share offered to shareholders
                           of UNIFAB in any tender offer or exchange offer
                           whereby a Change of Control takes place, or

                                3. in all other events, the Fair Market Value
                           per share of Common Stock into which such options
                           being converted are exercisable, as determined by the
                           Committee as of the date determined by the Committee
                           to be the date of conversion of such options.

                                4. in the event that the consideration offered
                           to shareholders of UNIFAB in any transaction
                           described in this Section 10.11 consists of anything
                           other than cash, the Committee shall determine the
                           fair cash equivalent of the portion of the
                           consideration offered that is other than cash.

                  10.12. DEFINITION OF FAIR MARKET VALUE. Whenever "Fair Market
         Value" of Common Stock shall be determined for purposes of this Plan,
         it shall be determined as follows: (i) if the Common Stock is listed on
         an established stock exchange or any automated quotation system that
         provides sale quotations, the closing sale price for a share of the
         Common Stock on such exchange or quotation system on the applicable
         date; (ii) if the Common Stock is not listed on any exchange or
         quotation system, but bid and asked prices are quoted and published,
         the mean between the quoted bid and asked prices on the applicable
         date, and if bid and asked prices are not available on such day, on the
         next preceding day on which such prices were available; and (iii) if
         the Common Stock is not regularly quoted, the fair market value of a
         share of Common Stock on the applicable date as established by the
         Committee in good faith.

                  10.13 LOANS. In order to assist a participant in acquiring
         shares of Common Stock pursuant to an Incentive granted under the Plan,
         the Committee may authorize, subject to the provisions of Regulation G
         of the Board of Governors of the Federal Reserve System, at either the
         time of the grant of the Incentive, at the time of the acquisition of
         Common Stock pursuant to the Incentive, or at the time of the lapse of
         restrictions on shares of restricted stock granted under the Plan, the
         extension of a loan to the participant by the Company. The

                                      -13-
<PAGE>

         terms of any loans, including the interest rate, collateral and terms
         of repayment, will be subject to the discretion of the Committee. The
         maximum credit available hereunder shall be equal to the aggregate
         purchase price of the shares of Common Stock to be acquired pursuant to
         the Incentive plus the maximum tax liability that may be incurred in
         connection with the Incentive.

                                      -14-<PAGE>
                                                                    EXHIBIT 10.3

                           UNIFAB INTERNATIONAL, INC.
                        EMPLOYEE LONG-TERM INCENTIVE PLAN

         1. PURPOSE. The purpose of the Employee Long-Term Incentive Plan (the
"Plan") of UNIFAB International, Inc. ("UNIFAB") is to increase shareholder
value and to advance the interests of UNIFAB and its subsidiaries (collectively,
the "Company") by furnishing a variety of economic incentives (the "Incentives")
designed to attract, retain and motivate key employees, consultants, and
advisors of the Company and to strengthen the mutuality of interests between the
shareholders of UNIFAB and such employees, consultants, and advisors. Incentives
consist of opportunities to purchase or to receive shares of UNIFAB common
stock, $.01 par value per share (the "Common Stock"), on terms determined under
the Plan. As used in the Plan, the term "subsidiary" means any corporation or
other entity of which UNIFAB owns (directly or indirectly) 50% or more of the
total ordinary voting power or 50% or more of the total value of all classes of
equity interests of such corporation or other entity.

         2. ADMINISTRATION.

                  2.1. COMPOSITION. Except as otherwise provided in Sections
         9.11 and 9.12 of the Plan, the Plan shall be administered by the
         Chairman of the Board and Chief Executive Officer of the Company (the
         "Administrator"), who, in that position and capacity, shall constitute
         the "Employee Long-Term Incentive Plan Committee" of the UNIFAB Board
         of Directors for purposes of the Louisiana Business Corporation Law.

                  2.2. AUTHORITY. The Administrator shall have plenary authority
         to award Incentives under the Plan, to interpret the Plan, to establish
         any rules or regulations relating to the Plan that he determines to be
         appropriate, to enter into agreements with participants as to the terms
         of the Incentives (the "Incentive Agreements") and to make any other
         determination that he believes necessary or advisable for the proper
         administration of the Plan. His decisions in matters relating to the
         Plan shall be final and conclusive on the Company and participants.

         3. ELIGIBLE PARTICIPANTS. Except as provided in the last sentence of
this Section 3, key employees, consultants, and advisors of the Company
(collectively, "Eligible Participants") are eligible, but are not required, to
receive Incentives under the Plan. Participants may be designated individually
or by groups or categories, as the Administrator deems appropriate. Directors
and officers of UNIFAB and any person who is deemed to be a "director" or an
"officer" of UNIFAB for purposes of Section 16 of the Securities Exchange Act of
1934 (the "1934 Act") are not eligible to receive Incentives under the Plan.

         4. TYPES OF INCENTIVES. Incentives may be granted under the Plan to
Eligible Participants in any of the following forms, either individually or in
combination, (a) incentive stock

<PAGE>

options and non-qualified stock options; (b) restricted stock; and (c) other
stock-based awards ("Other Stock-Based Awards").

         5. SHARES SUBJECT TO THE PLAN.

                  5.1. NUMBER OF SHARES. Subject to adjustment as provided in
         Section 9.5, a total of 565,000 shares of Common Stock are authorized
         to be issued under the Plan. In the event that an Incentive granted
         hereunder expires or is terminated or cancelled prior to exercise or
         payment, any shares of Common Stock that were issuable thereunder may
         again be issued under the Plan. In the event that shares of Common
         Stock are issued as Incentives under the Plan and thereafter are
         forfeited or reacquired by the Company pursuant to rights reserved upon
         issuance thereof, such forfeited and reacquired shares may again be
         issued under the Plan. If an Other Stock-Based Award is to be paid in
         cash by its terms, the Administrator need not make a deduction from the
         shares of Common Stock issuable under the Plan with respect thereto. If
         and to the extent that an Other Stock-Based Award may be paid in cash
         or shares of Common Stock, the total number of shares available for
         issuance hereunder shall be debited by the number of shares payable
         under such Incentive, provided that upon any payment of all or part of
         such Incentive in cash, the total number of shares available for
         issuance hereunder shall be credited with the appropriate number of
         shares represented by the cash payment, as determined in the sole
         discretion of the Administrator. Additional rules for determining the
         number of shares granted under the Plan may be made by the
         Administrator, as he deems necessary or appropriate.

                  5.2. TYPE OF COMMON STOCK. Common Stock issued under the Plan
         may be authorized and unissued shares or issued shares held as treasury
         shares.

         6. STOCK OPTIONS. A stock option is a right to purchase shares of
Common Stock from UNIFAB. Stock options granted under this Plan may be incentive
stock options or non-qualified stock options. Any option that is designated as a
non-qualified stock option shall not be treated as an incentive stock option.
Each stock option granted by the Administrator under this Plan shall be subject
to the following terms and conditions:

                  6.1. PRICE. The exercise price per share shall be determined
         by the Administrator, subject to adjustment under Section 9.5;
         provided, in no event shall the exercise price be less than the Fair
         Market Value of a share of Common Stock on the date of grant, except
         that in connection with an acquisition, consolidation, merger or other
         extraordinary transaction, options may be granted at less than the then
         Fair Market Value to replace options previously granted by one or more
         parties to such transaction (or their affiliates) so long as the
         aggregate spread on such replacement options for any recipient of such
         options is equal to or less than the aggregate spread on the options
         being replaced.

                  6.2. NUMBER. The number of shares of Common Stock subject to
         the option shall be determined by the Administrator, subject to Section
         5.1 and subject to adjustment as provided in Section 9.5.

                                       2
<PAGE>

                  6.3. DURATION AND TIME FOR EXERCISE. The term of each stock
         option shall be determined by the Administrator. Each stock option
         shall become exercisable at such time or times during its term as shall
         be determined by the Administrator. Notwithstanding the foregoing, the
         Administrator may accelerate the exercisability of any stock option at
         any time, in addition to the automatic acceleration of stock options
         under Section 9.11.

                  6.4. MANNER OF EXERCISE. A stock option may be exercised, in
         whole or in part, by giving written notice to the Company, specifying
         the number of shares of Common Stock to be purchased. The exercise
         notice shall be accompanied by the full purchase price for such shares.
         The option price shall be payable in United States dollars and may be
         paid by (a) cash; (b) uncertified or certified check; (c) unless
         otherwise determined by the Administrator, by delivery of shares of
         Common Stock held by the optionee for at least six months, which shares
         shall be valued for this purpose at the Fair Market Value on the
         business day immediately preceding the date such option is exercised;
         (d) unless otherwise determined by the Administrator, by delivering a
         properly executed exercise notice together with irrevocable
         instructions to a broker approved by UNIFAB (with a copy to UNIFAB) to
         deliver promptly to UNIFAB the amount of sale or loan proceeds to pay
         the exercise price; or (e) in such other manner as may be authorized
         from time to time by the Administrator.

                  6.5. INCENTIVE STOCK OPTIONS. Notwithstanding anything in the
         Plan to the contrary, the following additional provisions shall apply
         to the grant of stock options that are intended to qualify as Incentive
         Stock Options, as that term is defined in Section 422 of the Internal
         Revenue Code of 1986, as amended (the "Code"):

                           A. Any Incentive Stock Option agreement authorized
                  under the Plan shall contain such other provisions as the
                  Administrator shall deem advisable, but shall in all events be
                  consistent with and contain or be deemed to contain all
                  provisions required to qualify the options as Incentive Stock
                  Options.

                           B. All Incentive Stock Options must be granted within
                  ten years from the date on which this Plan is adopted by the
                  UNIFAB Board of Directors.

                           C. Unless sooner exercised, all Incentive Stock
                  Options shall expire no later than ten years after the date of
                  grant.

                           D. No Incentive Stock Options shall be granted to any
                  participant who, at the time such option is granted, would own
                  (within the meaning of Section 422 of the Code) stock
                  possessing more than 10% of the total combined voting power of
                  all classes of stock of the employer corporation or of its
                  parent or subsidiary corporation.

                           E. The aggregate Fair Market Value (determined with
                  respect to each Incentive Stock Option as of the time such
                  Incentive Stock Option is granted) of the Common Stock with
                  respect to which Incentive Stock Options are exercisable for
                  the

                                       3
<PAGE>

                  first time by a participant during any calendar year (under
                  the Plan or any other plan of UNIFAB or any of its
                  subsidiaries) shall not exceed $100,000. To the extent that
                  such limitation is exceeded, such options shall not be
                  treated, for federal income tax purposes, as Incentive Stock
                  Options.

         7.       RESTRICTED STOCK.

                  7.1. GRANT OF RESTRICTED STOCK. The Administrator may award
         shares of restricted stock to such Eligible Participants as the
         Administrator determines pursuant to the terms of Section 3. An award
         of restricted stock shall be subject to such restrictions on transfer
         and forfeitability provisions and such other terms and conditions as
         the Administrator may determine, subject to the provisions of the Plan.

                  7.2. THE RESTRICTED PERIOD. At the time an award of restricted
         stock is made, the Administrator shall establish a period of time
         during which the transfer of the shares of restricted stock shall be
         restricted (the "Restricted Period"). The Restricted Period shall be a
         minimum of three years. Each award of restricted stock may have a
         different Restricted Period. The expiration of the Restricted Period
         shall also occur as provided under Section 9.3 and under the conditions
         described in Section 9.11 hereof.

                  7.3. ESCROW. The participant receiving restricted stock shall
         enter into an Incentive Agreement with the Company setting forth the
         conditions of the grant. Certificates representing shares of restricted
         stock shall be registered in the name of the participant and deposited
         with the Company, together with a stock power endorsed in blank by the
         participant. Each such certificate shall bear a legend in substantially
         the following form:

                  The transferability of this certificate and the shares of
                  Common Stock represented by it are subject to the terms and
                  conditions (including conditions of forfeiture) contained in
                  the UNIFAB International, Inc. Employee Long-Term Incentive
                  Plan (the "Plan") and an agreement entered into between the
                  registered owner and UNIFAB International, Inc. thereunder.
                  Copies of the Plan and the agreement are on file at the
                  principal office of UNIFAB International, Inc.

                  7.4. DIVIDENDS ON RESTRICTED STOCK. Any and all cash and stock
         dividends paid with respect to the shares of restricted stock shall be
         subject to any restrictions on transfer, forfeitability provisions or
         reinvestment requirements as the Administrator may, in his discretion,
         prescribe in the Incentive Agreement.

                  7.5. FORFEITURE. In the event of the forfeiture of any shares
         of restricted stock under the terms provided in the Incentive Agreement
         (including any additional shares of restricted stock that may result
         from the reinvestment of cash and stock dividends, if so provided in
         the Incentive Agreement), such forfeited shares shall be surrendered
         and the certificates cancelled. The participants shall have the same
         rights and privileges, and be

                                       4
<PAGE>

         subject to the same forfeiture provisions, with respect to any
         additional shares received pursuant to Section 9.5 due to a
         recapitalization, merger or other change in capitalization.

                  7.6. EXPIRATION OF RESTRICTED PERIOD. Upon the expiration or
         termination of the Restricted Period and the satisfaction of any other
         conditions prescribed by the Administrator, the restrictions applicable
         to the restricted stock shall lapse and a stock certificate for the
         number of shares of restricted stock with respect to which the
         restrictions have lapsed shall be delivered, free of all such
         restrictions and legends, except any that may be imposed by law, to the
         participant or the participant's estate, as the case may be.

                  7.7. RIGHTS AS A SHAREHOLDER. Subject to the terms and
         conditions of the Plan and subject to any restrictions on the receipt
         of dividends that may be imposed in the Incentive Agreement, each
         participant receiving restricted stock shall have all the rights of a
         shareholder with respect to shares of stock during the Restricted
         Period, including without limitation, the right to vote any shares of
         Common Stock.

         8.       OTHER STOCK-BASED AWARDS.

                  8.1. TERMS OF OTHER STOCK-BASED AWARDS. The Administrator is
         hereby authorized to grant to Eligible Participants an "Other
         Stock-Based Award," which shall consist of an award, the value of which
         is based in whole or in part on the value of shares of Common Stock,
         that is not an instrument or award specified in Sections 6 or 7 of the
         Plan. Other Stock-Based Awards may be awards of shares of Common Stock
         or may be denominated or payable in, valued in whole or in part by
         reference to, or otherwise based on or related to, shares of Common
         Stock (including, without limitation, securities convertible or
         exchangeable into or exercisable for shares of Common Stock), as deemed
         by the Administrator consistent with the purposes of the Plan. The
         Administrator shall determine the terms and conditions of any such
         Other Stock-Based Award and may provide that such awards would be
         payable in whole or in part in cash. Except in the case of an Other
         Stock-Based Award granted in assumption of or in substitution for an
         outstanding award of a company acquired by the Company or with which
         the Company combines, the price at which securities may be purchased
         pursuant to any Other Stock-Based Award granted under this Plan, or the
         provision, if any, of any such award that is analogous to the purchase
         or exercise price, shall not be less than 100% of the fair market value
         of the securities to which such award relates on the date of grant.

                  8.2. DIVIDEND EQUIVALENTS. In the sole and complete discretion
         of the Administrator, an Other Stock-Based Award under this Section 8
         may provide the holder thereof with dividends or dividend equivalents,
         payable in cash or shares of Common Stock on a current or deferred
         basis.

                  8.3. NOT A SHAREHOLDER. The grant of an Other Stock-Based
         Award to a participant shall not create any rights in such participant
         as a shareholder of the Company

                                       5
<PAGE>

         until the issuance of shares of Common Stock with respect to an award,
         at which time such stock shall be considered issued and outstanding.

         9.       GENERAL.

                  9.1. DURATION. Subject to Section 9.10, the Plan shall remain
         in effect until all Incentives granted under the Plan have either been
         satisfied by the issuance of shares of Common Stock or the payment of
         cash or been terminated under the terms of the Plan and all
         restrictions imposed on shares of Common Stock in connection with their
         issuance under the Plan have lapsed.

                  9.2. TRANSFERABILITY. No Incentives granted hereunder may be
         transferred, pledged, assigned or otherwise encumbered by a participant
         except: (a) by will; (b) by the laws of descent and distribution; (c)
         pursuant to a domestic relations order, as defined in the Code, if
         permitted by the Administrator and so provided in the Incentive
         Agreement or an amendment thereto; or (d) as to options only, if
         permitted by the Administrator and so provided in the Incentive
         Agreement or an amendment thereto, (i) to Immediate Family Members,
         (ii) to a partnership in which Immediate Family Members, or entities in
         which Immediate Family Members are the sole owners, members or
         beneficiaries, as appropriate, are the sole partners, (iii) to a
         limited liability company in which Immediate Family Members, or
         entities in which Immediate Family Members are the sole owners, members
         or beneficiaries, as appropriate, are the sole members, or (iv) to a
         trust for the sole benefit of Immediate Family Members. "Immediate
         Family Members" shall be defined as the spouse and natural or adopted
         children or grandchildren of the participant and their spouses. To the
         extent that an Incentive Stock Option is permitted to be transferred
         during the lifetime of the participant, it shall be treated thereafter
         as a nonqualified stock option. Any attempted assignment, transfer,
         pledge, hypothecation or other disposition of Incentives or levy of
         attachment or similar process upon Incentives not specifically
         permitted herein shall be null and void and without effect.

                  9.3. EFFECT OF TERMINATION OF STATUS AS ELIGIBLE PARTICIPANT.
         In the event that a participant ceases to be an Eligible Participant
         for any reason, including death, disability, early retirement or normal
         retirement, any Incentives may be exercised, shall vest or shall expire
         at such times as may be determined by the Administrator in the
         Incentive Agreement. The Administrator has complete authority to modify
         the treatment of an Incentive in the event that the recipient thereof
         ceases to be an Eligible Participant by means of an amendment to the
         Incentive Agreement. Consent of the participant to the modification is
         required only if the modification materially impairs the rights
         previously provided to the participant in the Incentive Agreement.

                  9.4. ADDITIONAL CONDITION. Anything in this Plan to the
         contrary notwithstanding: (a) the Company may, if it shall determine it
         necessary or desirable for any reason, at the time of award of any
         Incentive or the issuance of any shares of Common Stock pursuant to any
         Incentive, require the recipient of the Incentive, as a condition to
         the receipt thereof or to the

                                       6
<PAGE>

         receipt of shares of Common Stock issued pursuant thereto, to deliver
         to the Company a written representation of present intention to acquire
         the Incentive or the shares of Common Stock issued pursuant thereto for
         his own account for investment and not for distribution; and (b) if at
         any time the Company further determines, in its sole discretion, that
         the listing, registration or qualification (or any updating of any such
         document) of any Incentive or the shares of Common Stock issuable
         pursuant thereto is necessary on any securities exchange or under any
         federal or state securities or blue sky law, or that the consent or
         approval of any governmental regulatory body is necessary or desirable
         as a condition of or in connection with the award of any Incentive, the
         issuance of shares of Common Stock pursuant thereto, or the removal of
         any restrictions imposed on such shares, such Incentive shall not be
         awarded or such shares of Common Stock shall not be issued or such
         restrictions shall not be removed, as the case may be, in whole or in
         part, unless such listing, registration, qualification, consent or
         approval shall have been effected or obtained free of any conditions
         not acceptable to the Company.

                  9.5. ADJUSTMENT. In the event of any merger, consolidation or
         reorganization of the Company with any other corporation or
         corporations, there shall be substituted for each of the shares of
         Common Stock then subject to the Plan, including shares subject to
         restrictions, options or achievement of performance objectives, the
         number and kind of shares of stock or other securities to which the
         holders of the shares of Common Stock will be entitled pursuant to the
         transaction. In the event of any recapitalization, stock dividend,
         stock split, combination of shares or other change in the Common Stock,
         the number of shares of Common Stock then subject to the Plan,
         including shares subject to outstanding Incentives, shall be adjusted
         in proportion to the change in outstanding shares of Common Stock. In
         the event of any such adjustments, the purchase price of any option,
         the performance objectives of any Incentive, and the shares of Common
         Stock issuable pursuant to any Incentive shall be adjusted as and to
         the extent appropriate, in the reasonable discretion of the
         Administrator, to provide participants with the same relative rights
         before and after such adjustment. No substitution or adjustment shall
         require the Company to issue a fractional share under this Plan and the
         substitution or adjustment shall be limited by deleting any fractional
         share.

                  9.6. INCENTIVE AGREEMENTS. An Incentive under this Plan shall
         be subject to such terms and conditions, not inconsistent with this
         Plan, as the Administrator may, in his sole discretion, prescribe and
         set forth in the Incentive Agreement. Such terms and conditions may
         provide for the forfeiture of an Incentive or the gain associated with
         an Incentive under certain circumstances to be set forth in the
         Incentive Agreement, including if the participant competes with the
         Company or engages in other activities that are harmful to the Company.
         All terms and conditions of any Incentive shall be reflected in such
         form of Incentive Agreement as is determined by the Administrator. A
         copy of such document shall be provided to the participant, and the
         Administrator may, but need not, require that the participant sign a
         copy of such document. Such document is referred to in this Plan as an
         "Incentive Agreement" regardless of whether a participant's signature
         is required.

                                       7
<PAGE>

                  9.7. WITHHOLDING.

                           A. The Company shall have the right to withhold from
                  any payments made under the Plan or to collect as a condition
                  of payment any taxes required by law to be withheld. At any
                  time that a participant is required to pay to the Company an
                  amount required to be withheld under applicable income tax
                  laws in connection with the issuance of Common Stock, the
                  lapse of restrictions on Common Stock or the exercise of an
                  option, the participant may, subject to disapproval by the
                  Administrator, satisfy this obligation in whole or in part by
                  electing (the "Election") that the Company withhold shares of
                  Common Stock having a value equal to the amount required to be
                  withheld. The value of the shares to be withheld shall be
                  based on the Fair Market Value of the Common Stock on the date
                  that the amount of tax to be withheld shall be determined
                  ("Tax Date").

                           B. Each Election must be made prior to the Tax Date.
                  The Administrator may disapprove of any Election, may suspend
                  or terminate the right to make Elections, or may provide with
                  respect to any Incentive that the right to make Elections
                  shall not apply to such Incentive. If a participant makes an
                  election under Section 83(b) of the Code with respect to
                  shares of restricted stock, an Election is not permitted to be
                  made.

                  9.8. NO CONTINUED ENGAGEMENT. No participant under the Plan
         shall have any right, because of his or her participation, to continue
         as an employee, consultant, or advisor of the Company for any period of
         time or to any right to continue his present or any other rate of
         compensation.

                  9.9. DEFERRAL PERMITTED. Payment of cash or distribution of
         any shares of Common Stock to which a participant is entitled under any
         Incentive shall be made as provided in the Incentive Agreement. Payment
         may be deferred at the option of the participant if provided in the
         Incentive Agreement.

                  9.10. AMENDMENTS TO OR TERMINATION OF THE PLAN.

                           A. The UNIFAB Board of Directors may amend, suspend
                  or terminate the Plan or any portion thereof at any time.

                           B. Any provision of this Plan or any Incentive
                  Agreement to the contrary notwithstanding, the Administrator
                  may cause any Incentive granted hereunder to be cancelled in
                  consideration of a cash payment or alternative Incentive made
                  to the holder of such cancelled Incentive equal in value to
                  such cancelled Incentive. The determinations of value under
                  this subparagraph shall be made by the Administrator in his
                  sole discretion.

                  9.11. CHANGE OF CONTROL.

                                       8
<PAGE>

                           A.       "Change of Control" shall mean:

                                    1. the acquisition by any individual, entity
                           or group (within the meaning of Section 13(d)(3) or
                           14(d)(2) of the 1934 Act) of beneficial ownership
                           (within the meaning of Rule 13d-3 promulgated under
                           the 1934 Act) of more than 30% of the outstanding
                           shares of the Common Stock; provided, however, for
                           purposes of this subsection 1, the following shall
                           not constitute a Change of Control:

                                             (a) any acquisition of Common Stock
                                    directly from UNIFAB,

                                             (b) any acquisition of Common Stock
                                    by UNIFAB,

                                             (c) any acquisition of Common Stock
                                    by any employee benefit plan (or related
                                    trust) sponsored or maintained by UNIFAB or
                                    any corporation controlled by UNIFAB, or

                                             (d) any acquisition of Common Stock
                                    by any corporation pursuant to a transaction
                                    that complies with clauses (a), (b) and (c)
                                    of subsection A.3 of this Section 9.11; or

                                    2. individuals who, as of the date of
                           adoption of the Plan by the UNIFAB Board of Directors
                           (the "Adoption Date"), constitute the UNIFAB Board of
                           Directors (the "Incumbent Board") cease for any
                           reason to constitute at least a majority of the
                           UNIFAB Board of Directors; provided, however, that
                           any individual becoming a director subsequent to the
                           Adoption Date whose election, or nomination for
                           election by the UNIFAB shareholders, was approved by
                           a vote of at least a majority of the directors then
                           comprising the Incumbent Board shall be considered a
                           member of the Incumbent Board, unless such
                           individual'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

                                    3. consummation of a reorganization, merger
                           or consolidation, or sale or other disposition of all
                           of substantially all of the assets of the Company (a
                           "Business Combination"), in each case, unless,
                           following such Business Combination,

                                            (a) all or substantially all of the
                                    individuals and entities who were the
                                    beneficial owners of UNIFAB outstanding
                                    common stock and UNIFAB voting securities
                                    entitled to vote generally in the

                                       9
<PAGE>

                                    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 corporation resulting from such
                                    Business Combination (which, for purposes of
                                    this paragraph (a) and paragraphs (b) and
                                    (c), shall include a corporation that as a
                                    result of such transaction controls the
                                    Company or all or substantially all of the
                                    Company assets either directly or through
                                    one or more subsidiaries), and

                                            (b) except to the extent that such
                                    ownership existed prior to the Business
                                    Combination, no person (excluding any
                                    corporation resulting from such Business
                                    Combination or any employee benefit plan or
                                    related trust of the Company or such
                                    corporation resulting from such Business
                                    Combination) beneficially owns, directly or
                                    indirectly, 30% or more of the then
                                    outstanding shares of common stock of the
                                    corporation resulting from such Business
                                    Combination or 30% or more of the combined
                                    voting power of the then outstanding voting
                                    securities of such corporation, and

                                            (c) at least a majority of the
                                    members of the board of directors of the
                                    corporation resulting from such Business
                                    Combination were members of the Incumbent
                                    Board at the time of the execution of the
                                    initial agreement, or of the action of the
                                    UNIFAB Board of Directors, providing for
                                    such Business Combination; or

                                    4. approval by the shareholders of the
                           Company of a complete liquidation or dissolution of
                           the Company.

                           B. Upon a Change of Control of the types described in
                  subsections A.2 and A.4 of this Section 9.11 and immediately
                  prior to a Change of Control of the types described in
                  subsections A.1 and A.3 of this Section 9.11, all outstanding
                  options shall automatically become fully exercisable, all
                  restrictions or limitations on any Incentives shall lapse and
                  all performance criteria and other conditions relating to the
                  payment of Incentives shall be deemed to be achieved or waived
                  by the Company, without the necessity of any action by any
                  person.

                           C. No later than 30 days after the approval by the
                  UNIFAB Board of Directors of a Change of Control of the types
                  described in subsections A.3 and A.4 of this Section 9.11, and
                  no later than 30 days after a Change of Control of the types
                  described in subsections A.1 and A.2 of this Section 9.11, the
                  Compensation Committee (the "Committee") of the UNIFAB Board
                  of Directors (as that Committee was composed immediately prior
                  to such Change of Control and notwithstanding any

                                       10
<PAGE>

                  removal or attempted removal of some or all of the members
                  thereof as directors or Committee members), acting in its sole
                  discretion without the consent or approval of any participant,
                  may act to effect one or more of the alternatives listed below
                  and such act by the Committee may not be revoked or rescinded
                  by persons not members of the Committee immediately prior to
                  the Change of Control:

                                    1. require that all outstanding options be
                           exercised on or before a specified date (before or
                           after such Change of Control) fixed by the Committee,
                           after which specified date all unexercised options
                           shall terminate,

                                    2. provide for mandatory conversion of some
                           or all of the outstanding options held by some or all
                           participants as of a date, before or after such
                           Change of Control, specified by the Committee, in
                           which event such options shall be deemed
                           automatically cancelled and UNIFAB shall pay, or
                           cause to be paid, to each such participant an amount
                           of cash per share equal to the excess, if any, of the
                           Change of Control Value of the shares subject to such
                           option, as defined and calculated below, over the
                           exercise price(s) of such options, or, in lieu of
                           such cash payment, the issuance of Common Stock or
                           securities of an acquiring entity having a Fair
                           Market Value equal to such excess,

                                    3. make such equitable adjustments to
                           Incentives then outstanding as the Committee deems
                           appropriate to reflect such Change of Control
                           (provided, however, the Committee may determine in
                           its sole discretion that no adjustment is necessary),
                           or

                                    4. provide that thereafter upon any exercise
                           of an option the participant shall be entitled to
                           purchase under such option, in lieu of the number of
                           shares of Common Stock then covered by such option,
                           the number and class of shares of stock or other
                           securities or property (including, without
                           limitation, cash) to which the participant would have
                           been entitled pursuant to the terms of the agreement
                           providing for the merger, consolidation, asset sale,
                           dissolution or other Change of Control of the types
                           described in subsections A.3 and A.4 of this Section
                           9.11, if, immediately prior to such Change of
                           Control, the participant had been the holder of
                           record of the number of shares of Common Stock then
                           covered by such options.

                           D. For the purposes of paragraph 2 of subsection C of
                  this Section 9.11, the "Change of Control Value" shall equal
                  the amount determined by whichever of the following items is
                  applicable:

                                    1. the per share price to be paid to UNIFAB
                           shareholders in any such merger, consolidation or
                           other reorganization,

                                       11
<PAGE>

                                    2. the price per share offered to UNIFAB
                           shareholders in any tender offer or exchange offer
                           whereby a Change of Control takes place,

                                    3. in all other events, the Fair Market
                           Value per share of Common Stock into which such
                           options being converted are exercisable, as
                           determined by the Committee as of the date determined
                           by the Committee to be the date of conversion of such
                           options, or

                                    4. in the event that the consideration
                           offered to UNIFAB shareholders in any transaction
                           described in this Section 9.11 consists of anything
                           other than cash, the Committee shall determine the
                           fair cash equivalent of the portion of the
                           consideration offered that is other than cash.

                  9.12. DEFINITION OF FAIR MARKET VALUE. Whenever "Fair Market
         Value" of Common Stock shall be determined for purposes of this Plan,
         it shall be determined as follows: (i) if the Common Stock is listed on
         an established stock exchange or any automated quotation system that
         provides sale quotations, the closing sale price for a share of the
         Common Stock on such exchange or quotation system on the applicable
         date; (ii) if the Common Stock is not listed on any exchange or
         quotation system, but bid and asked prices are quoted and published,
         the mean between the quoted bid and asked prices on the applicable date
         or, if bid and asked prices are not available on such day, on the next
         preceding day on which such prices were available; and (iii) if the
         Common Stock is not regularly quoted, the fair market value of a share
         of Common Stock on the applicable date as established in good faith by
         the Administrator or, with respect to determinations made under Section
         9.11 of the Plan only, the Committee.

                  9.13 LOANS. To assist a participant in acquiring shares of
         Common Stock pursuant to an Incentive granted under the Plan, the
         Administrator may authorize, subject to the provisions of Regulation G
         of the Board of Governors of the Federal Reserve System, at either the
         time of the grant of the Incentive, at the time of the acquisition of
         Common Stock pursuant to the Incentive, or at the time of the lapse of
         restrictions on shares of restricted stock granted under the Plan, the
         extension of a loan to the participant by the Company. The terms of any
         loans, including the interest rate, collateral and terms of repayment,
         will be subject to the discretion of the Administrator. The maximum
         credit available hereunder shall be equal to the aggregate purchase
         price of the shares of Common Stock to be acquired pursuant to the
         Incentive plus the maximum tax liability that may be incurred in
         connection with the Incentive.

                                       12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}]]