Document:

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                                                                     Exhibit 4.6

                                   MIDAS, INC.
                      DIRECTORS' DEFERRED COMPENSATION PLAN

     Midas, Inc. (the "Company") desires to establish a Directors' Deferred
Compensation Plan (the "Plan") to assist it in attracting and retaining persons
of competence and stature to serve as Directors of the Company by giving them
the option of using their Board and Board Committee annual retainer and meeting
attendance fees from the Company (the "Fees") to purchase shares of the
Company's Common Stock (the "Common Stock") or of deferring receipt of such Fees
in the form of cash units and units representing shares of Common Stock. The
terms of the Plan are set forth below.

     1. Effective Date. The Plan is effective upon its approval by the Company's
shareholders.

     2. Participation. Each non-officer Director ("Eligible Director") may elect
to have all or a portion of his or her Fees paid in the form of shares of Common
Stock or to defer receipt of such Fees. Each Eligible Director who makes such an
election shall be a Plan Participant.

     3. Administration. The Company's Board of Directors (the "Board") shall
designate from time to time a non-director officer of the Company to act as the
administrator of the Plan (the "Administrator"). The Administrator shall
administer, construe and interpret the Plan. The Administrator shall not be
liable for any act done or determination made in good faith. The expense of
administering the Plan shall be borne by the Company and shall not be charged
against benefits payable hereunder.

     4. Common Stock Subject to the Plan. The aggregate number of shares of
Common Stock that may be issued under the Plan shall not exceed one hundred
thousand (100,000), which shall be adjusted appropriately by the Administrator
for any stock dividend, split, combination or other change in the Common Stock
(including, without limitation, pursuant to any merger, acquisition or other
transaction).

     5. Conversion of Fees into Shares. Prior to first day of each fiscal year,
an Eligible Director may elect to have all or a portion of his or her Fees paid
in the form of shares of Common Stock by executing the Fee Conversion Form
attached as Exhibit A. The number of shares to be issued to an electing Eligible
Director shall be determined by dividing the dollar amount of the Fees subject
to the election by the Market Value (as defined in Paragraph 6(b)) of

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the Common Stock on the date that the Fees would have otherwise been paid. The
shares of Common Stock shall be issued to the Eligible Director as soon as
practicable following the date on which the Fees subject to the election would
have otherwise been paid.

     6. Deferral of Fees.

     (a) Deferral Election. Prior to first day of each fiscal year, an Eligible
Director may elect to defer all or a portion of the Fees otherwise payable to
that Eligible Director for such year (the "Plan Year") by executing the Deferral
Election Form attached as Exhibit B. In addition to deferring Fees, the Deferral
Election Form for each Plan Year will require the Eligible Director to elect to
have the deferred Fees credited on the Company's books in the form of share
units, with each unit representing a share of Common Stock, or cash units.

     (b) Crediting to Plan Year Accounts. An account (the "Plan Year Account")
shall be established on the Company's books to record a Participant's deferrals
resulting from each annual Deferral Election, which shall be credited in the
form of cash units and share units. Each Plan Year Account shall be credited
with an amount equivalent to the Fees that would have otherwise been paid to the
Participant, such credit to be made on the date on which the Fees would have
been paid absent a Deferral Election. The number of share units to be credited
to a Plan Year Account shall be determined by dividing the dollar amount of the
deferred Fees by the Market Value of the Common Stock on the date the Fees would
have otherwise been paid. The "Market Value" of the Common Stock as of a given
date means the closing price of the Common Stock on the New York Stock Exchange
(as reported in the Midwest Edition of The Wall Street Journal) on such given
date or, if shares were not traded on such date, on the next preceding date on
which shares were traded; provided that, if the Common Stock is traded on an
exchange or market in which prices are reported on a bid and asked price, Market
Value shall mean the average of the mean between the bid and the asked price for
the Common Stock at the close of trading for the ten consecutive trading days
immediately preceding such given date; and provided further that, if the Common
Stock is not listed on a national securities exchange nor traded on the
over-the-counter market, the Market Value shall be determined by the
Administrator in good faith.

     (c) Dividend and Interest Credits. Each Plan Year Account that holds share
units shall be adjusted appropriately by the Administrator for dividends on the
Common Stock as of the dividend payment date, which adjustment shall be in the
form of additional share units

                                      - 2 -

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determined by multiplying the number of units then credited to the Plan Year
Account by the ratio of the dollar amount of the dividend per share over the
current Market Value of the Common Stock. The Administrator shall also adjust
appropriately the number of share units in each Plan Year Account for any stock
dividend, split, combination or other change in the Common Stock (including,
without limitation, pursuant to any merger, acquisition or other transaction).
Cash units credited to a Plan Year Account shall accrue interest compounded
monthly based on the prime commercial lending rate as quoted in the Midwest
Edition of The Wall Street Journal as of the first business day of each month.
Each Participant shall receive semi-annual statements of the balances in that
Participant's Plan Year Accounts.

     7. Payment of Plan Year Accounts. A Participant must execute the Payment
Election Form attached as Exhibit C at the time each Deferral Election is made
under Paragraph 6(a), indicating the date on which payment of the amounts
credited to the Participant's Plan Year Account to which that Deferral Election
relates will commence and the payment method. The payment commencement date for
a particular Plan Year Account can be no earlier than two (2) calendar years
from the last day of the Plan Year for which deferrals are made to that Account.
Payment may be made in a single lump-sum or a maximum of ten (10) substantially
equal annual installments. The commencement date and method of payment may vary
with each separate Deferral Election and Plan Year Account. Share units shall be
paid only in the shares of Common Stock, with any fractional share paid in cash,
and cash units shall be paid only in an equivalent amount of cash. The
Participant may delay a payment commencement date by submitting a new Payment
Election Form at least thirteen (13) months prior thereto. The new payment
commencement date selected by the Participant must be at least twenty-four (24)
months following the date the new Payment Election Form is submitted.
Notwithstanding any payment election made by a Participant, the aggregate
balance of the Participant's Plan Year Accounts shall be paid in a single
lump-sum to the Participant as soon as practicable following termination of the
Participant's directorship. The Administrator may elect in its sole discretion
to accelerate the payment of any Plan Year Account.

                                      - 3 -

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     8. Early Payment. A Participant may file a written request with the
Administrator for payment from his or her Plan Year Accounts due to an
unforeseeable emergency that is caused by an event beyond the control of the
Participant and that would result in severe financial hardship to the
Participant if payment were not permitted, such as may result from a sudden and
unexpected illness or accident not covered by insurance, loss of property due to
casualty, or similar circumstance.

     9. Payment in the Event of Death. In the event that a Participant's service
is terminated by reason of death, the Company shall, within sixty (60) days
thereafter, pay the aggregate balance of the Participant's Plan Year Accounts to
the Participant's beneficiary or beneficiaries in the form of a single lump-sum.
Each Participant may designate one or more death beneficiaries by executing the
Beneficiary Designation Form attached as Exhibit D. The designated beneficiary
or beneficiaries may be changed by a Participant at any time prior to the
Participant's death by the delivery to the Administrator of a new Beneficiary
Designation Form. If no beneficiary has been designated, or if no designated
beneficiary survives the Participant, payments pursuant to this Paragraph 9
shall be made to the Participant's estate.

     10. Assignment and Alienation of Benefits. Except to the extent provided in
Paragraph 9 or pursuant to a domestic relations order issued by a court of
proper authority (which order specifies the amount and timing of any payment to
a Participant's former spouse), no Participant or beneficiary may sell, assign,
transfer, encumber, or otherwise dispose of the right to receive payments
hereunder.

     11. Unsecured Obligation. The obligation of the Company to make payments of
amounts credited to the Participant's Plan Year Accounts shall be a general
unsecured obligation of the Company, and such payment shall be made from general
assets and property of the Company. The Participant's relationship to the
Company under the Plan shall be only that of a general unsecured creditor and
neither this Plan, nor any agreement entered into hereunder, or action taken
pursuant hereto, shall create or be construed to create a trust for purposes of
holding and investing the Plan Year Account balances. The Company reserves the
right to establish such a trust, but such establishment shall not create any
rights in or against any amounts held thereunder.

     12. Amendment or Termination. The Board may amend or terminate this Plan at
any time and from time to time, provided that the aggregate number of shares
that may be issued

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pursuant to the Plan may not be increased without shareholder approval. Any
amendment or termination of this Plan shall not affect the rights of a
Participant accrued prior thereto without the Participant's written consent.

     13. Taxes. The Company is not responsible for any of the income taxes
resulting from an Eligible Director's participation in the Plan. The Company
shall comply with all applicable tax reporting requirements relating to payments
under the Plan.

     14. No Right to Continued Directorship. Nothing in this Plan confers upon
any Director the right to continue as a member of the Board or interferes with
the rights of the Company and its shareholders to remove any Director in
accordance with the Company's bylaws.

     15. Applicable Law. This Plan is governed under the laws of the State of
Illinois.

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EXHIBIT A

                MIDAS, INC. DIRECTORS' DEFERRED COMPENSATION PLAN
                 FEE CONVERSION ELECTION FORM FOR EACH PLAN YEAR
                 -----------------------------------------------

I hereby elect that ____% (FILL IN) of my Board and Board Committee annual
retainer and meeting attendance fees to be earned during the next fiscal year be
distributed to me in shares of the Company's Common Stock. The shares should be
delivered to me as follows (COMPLETE ONE OF THE FOLLOWING):

METHOD 1: Stock certificates in the name of ____________________________________

METHOD 2: Electronic transfer of stock as follows - ____________________________

          ----------------------------------------------------------------------

Your Fee Conversion Election is effective only for the single fiscal year to
which it applies.

__________________________________                   Date: _____________________
PARTICIPANT

Accepted by Administrator:

__________________________________                   Date: _____________________

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EXHIBIT B

                MIDAS, INC. DIRECTORS' DEFERRED COMPENSATION PLAN
                DEFERRAL ELECTION FORM FOR EACH PLAN YEAR ACCOUNT
                -------------------------------------------------

I hereby elect that ____% (FILL IN) of my Board and Board Committee annual
retention and meeting attendance fees to be earned during the next fiscal year
be deferred and credited to my Plan Year Account.

I hereby further elect all amounts to be deferred to my Plan Year Account for
the next fiscal year be credited in the form of share units and/or cash units
(as such terms are defined in the Plan) in the following percentages (FILL IN
ONE OR BOTH OF THE FOLLOWING):

            Cash Units:      ____%

            Share Units:     ____%
            Total:           100%

Your Deferral Election is effective only for the single fiscal year to which it
applies.

__________________________________                   Date: _____________________
PARTICIPANT

Accepted by Administrator:

__________________________________                   Date: _____________________

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EXHIBIT C

                MIDAS, INC. DIRECTORS' DEFERRED COMPENSATION PLAN
                PAYMENT ELECTION FORM FOR EACH PLAN YEAR ACCOUNT
                ------------------------------------------------

ELECTION OF PAYMENT COMMENCEMENT DATE
-------------------------------------

The payment commencement date for a particular Plan Year Account can be no
earlier than two (2) calendar years from the last day of the fiscal year for
which deferrals are made to that Account.

I hereby designate ______________________, 20___, (FILL IN) as the payment
commencement date for this Plan Year Account.

ELECTION OF FORM OF PAYMENT
---------------------------

I hereby elect the following method for payment of my Plan Year Account (YOU
MUST CHOOSE ONE):

..    Method 1: Annual installment payments over ___ years (FILL IN A WHOLE
     NUMBER UP TO 10 YEARS).

..    Method 2: Payment in a single lump-sum.

CHANGE OF COMMENCEMENT DATE
---------------------------

You may elect by filing a new Exhibit C to change the payment commencement date
elected above, provided that you file the election at least 13 months prior to
the scheduled commencement date. The new payment commencement date must be at
least 24 months following the date this new Exhibit C is submitted. Your new
election will be void and your original election will be reinstated if your
actual payments would commence within 13 months after the filing of the new
Exhibit C.

Despite any payment election that you make, the total balance of your Plan Year
Accounts will be paid in a single lump-sum to you as soon as practicable
following termination of your directorship.

__________________________________                   Date: _____________________
PARTICIPANT

Accepted by Administrator:

__________________________________                   Date: _____________________

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EXHIBIT D

                MIDAS, INC. DIRECTORS' DEFERRED COMPENSATION PLAN
                          BENEFICIARY DESIGNATION FORM
                          ----------------------------

Complete this form to name beneficiaries who will receive your Plan Year Account
balances remaining at the time of your death. You can change your beneficiaries
at any time by completing a new form. You must sign where indicated on the last
page for this form to be valid.

I.           Participant
             -----------

         ---------------------------------------
         Participant's legal name (please print)

II.          Primary Beneficiaries
             ---------------------

         Your remaining Plan Year Account balances will be paid only to those
         beneficiaries living at the time of your death. The proportions must
         total 100% of your Account balances. If proportions are not indicated,
         or do not total 100%, your remaining Account balances will be paid in
         equal shares to the designated beneficiaries. If any of your primary
         beneficiaries is not living at the time of your death, your remaining
         Account balances will be divided proportionately among the remaining
         primary beneficiaries.

         In the event of my death, pay my Plan Year Account balances to (if
         additional beneficiaries are designated, attach the required
         information on a separate page):

         --------------------------------   ------------------------------
         Name                               Social Security Number

         --------------------------------   -------------------   -------------%
         Relationship                       Date of Birth         Proportion

         -----------------------------------------------------------------------
         Address  City               State           Zip

         --------------------------------   ------------------------------------
                  Name                               Social Security Number

         --------------------------------   ------------------     ------------%
         Relationship                       Date of Birth          Proportion

         -----------------------------------------------------------------------
         Address  City               State                     Zip

                                                               -----
                                                               TOTAL   100%

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III.         Secondary Beneficiaries
             -----------------------

         Your remaining Plan Year Account balances will be paid to secondary
         beneficiaries only (1) if none of your primary beneficiaries is living
         at the time of your death, or (2) if all of your primary beneficiaries
         die before your Account balances has been completely paid. The
         proportions must total 100%. If proportions are not indicated, or do
         not total 100%, your remaining Account balances will be paid in equal
         shares to the designated beneficiaries. If any of your secondary
         beneficiaries is not living at the time of your death or on the date
         that your last surviving primary beneficiary dies, your remaining
         Account balances will be divided proportionately among the remaining
         secondary beneficiaries.

         If none of my primary beneficiaries is living at the time of my death
         or if all of my primary beneficiaries die before my Plan Year Account
         balances has been completely paid, pay my Account balances to (if
         additional beneficiaries are designated, attach the required
         information on a separate page):

         --------------------------------   ------------------------------------
         Name                               Social Security Number

         --------------------------------   ---------------------   -----------%
         Relationship                       Date of Birth           Proportion

         -----------------------------------------------------------------------
         Address  City               State           Zip

         --------------------------------   ------------------------------
                  Name                            Social Security Number

         --------------------------------   ---------------------   -----------%
         Relationship                       Date of Birth           Proportion

         -----------------------------------------------------------------------
         Address  City               State           Zip

                                                               -----
                                                               TOTAL   100%

V.           Participant's Signature
             -----------------------

         I hereby revoke every previous designation of beneficiaries for this
         Plan. I understand that I may change my beneficiaries at any time by
         completing a new form, and that the change is effective when received
         in writing and accepted by the Administrator.

__________________________________                   Date: _____________________
PARTICIPANT

Accepted by Administrator:

__________________________________                   Date: _____________________<PAGE>

                                                                    EXHIBIT 10.9

                              EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement") is entered into effective as of
July 10, 2002, by and between The Shaw Group Inc., a Louisiana corporation
(collectively with its affiliates and subsidiaries hereinafter referred to as
"Company"), and T. A. Barfield, Jr. ("Employee").

         WHEREAS, the Company employs Employee and desires to continue such
employment relationship and Employee desires to continue such employment;

         NOW, THEREFORE, in consideration of the mutual covenants,
representations, warranties, and agreements contained herein, and for other
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties agree as follows:

         1. Employment. The Company hereby employs Employee, and Employee hereby
accepts employment by the Company, on the terms and conditions set forth in this
Agreement.

         2. Term of Employment. Subject to the provisions for earlier
termination provided in this Agreement, the term of this agreement (the "Term")
shall be three (3) years commencing on the date hereof, and shall be
automatically renewed on each day following the date hereof so that on any given
day the unexpired portion of the Term of this Agreement shall be three (3)
years. Notwithstanding the foregoing provision, at any time after the date
hereof the Company or Employee may give written notice to the other party that
the Term of this Agreement shall not be further renewed from and after a
subsequent date specified in such notice (the "fixed term

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date"), in which event the Term of this Agreement shall become fixed and this
Agreement shall terminate on the third anniversary of the fixed term date.

         3. Employee's Duties. During the Term of this Agreement, Employee shall
serve as the Senior Vice President of the Company, with such duties and
responsibilities as may from time to time be assigned to him by the board of
directors of the Company (the "Board"), provided that such duties are consistent
with the customary duties of such position.

         Employee agrees to devote his full attention and time during normal
business hours to the business and affairs of the Company and to use reasonable
best efforts to perform faithfully and efficiently his duties and
responsibilities. Employee shall not, either directly or indirectly, enter into
any business or employment with or for any person, firm, association or
corporation other than the Company during the Term of this Agreement; provided,
however, that Employee shall not be prohibited from making financial investments
in any other company or business or from serving on the board of directors of
any other company. Employee shall at all times observe and comply with all
lawful directions and instructions of the Board.

         4. Base Compensation. For services rendered by Employee under this
Agreement, the Company shall pay to Employee a base salary ("Base Compensation")
of $350,000.00 per annum payable in accordance with the Company's customary pay
periods and subject to customary withholdings. The amount of Base Compensation
shall be reviewed by the Board on an annual basis as of the close of each fiscal
year of the Company and may be increased as the Board may deem appropriate. In
the event the Board deems it appropriate to increase Employee's annual base
salary, said increased amount shall thereafter be the "Base Compensation".
Employee's Base

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Compensation, as increased from time to time, may not thereafter be decreased
unless agreed to by Employee. Nothing contained herein shall prevent the Board
from paying additional compensation to Employee in the form of bonuses or
otherwise during the Term of this Agreement.

         5. Additional Benefits. In addition to the Base Compensation provided
for in Section 4 herein, Employee shall be entitled to the following:

                           (a) Expenses. The Company shall, in accordance with
                  any rules and policies that it may establish from time to time
                  for executive officers, reimburse Employee for business
                  expenses reasonably incurred in the performance of his duties.
                  It is understood that Employee is authorized to incur
                  reasonable business expenses for promoting the business of the
                  Company, including reasonable expenditures for travel,
                  lodging, meals and client or business associate entertainment.
                  Request for reimbursement for such expenses must be
                  accompanied by appropriate documentation.

                           (b) Vacation. Employee shall be entitled to four (4)
                  weeks of vacation per year, without any loss of compensation
                  or benefits. Employee shall be entitled to carry forward any
                  unused vacation time.

                           (c) General Benefits. Employee shall be entitled to
                  participate in the various employee benefit plans or programs
                  provided to the employees of the company in general, including
                  but not limited to, health, dental, disability, 401K and life
                  insurance plans, subject to the eligibility requirements with
                  respect to each of such benefit plans or programs, and such
                  other benefits or perquisites as may be approved by the Board

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                  during the Term of this Agreement. Nothing in this paragraph
                  shall be deemed to prohibit the Company from making any
                  changes in any of the plans, programs or benefits described in
                  this Section 5, provided the change similarly affects all
                  executive officers of the Company similarly situated.

                           (d) Options. Upon the resignation for Good Reason as
                  defined in Section 7 (e), discharge as defined in Section 7
                  (c) (i), or disability as defined in Section 7 (d), Employee
                  shall be considered as immediately and totally vested in any
                  and all stock options or other similar awards previously made
                  to Employee by the Company or its subsidiaries under a "Long
                  Term Incentive Plan" duly adopted by the Board (such options
                  or similar awards are hereinafter collectively referred to as
                  "Options"). In the event that the Options become vested under
                  this paragraph, employee will be allowed not less than one
                  year from the date of such vesting in which to exercise such
                  options.

         6. Confidential Information. Employee, during the Term, may have access
to and become familiar with confidential information, secrets and proprietary
information concerning the business and affairs of the Company. As to such
confidential information, Employee agrees as follows:

                           (a) During the employment of Employee with the
                  Company and thereafter Employee will not, either directly or
                  indirectly, disclose to any third party without the written
                  permission of the Company, nor use in any way (except as
                  required in the course of his employment with the Company) any
                  confidential information, secret or proprietary information

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                  of the Company. In the event of a breach or threatened breach
                  of the provisions of this Section 6 (a), the Company shall be
                  entitled, in addition to any other remedies available to the
                  Company, to an injunction restraining Employee from disclosing
                  such confidential information.

                           (b) Upon termination of employment of Employee, for
                  whatever reason, Employee shall surrender to the Company any
                  and all documents, manuals, correspondence, reports, records
                  and similar items then or thereafter coming into the
                  possession of Employee which contain any confidential, secret
                  or proprietary information of the Company.

         7. Termination This Agreement may be terminated prior to the end of its
Term as set forth below:

                           (a) Resignation (other than for Good Reason).
                  Employee may resign, including by reason of retirement, his
                  position at any time by providing written notice of
                  resignation to the Company in accordance with Section 11
                  hereof. In the event of such resignation, except in the case
                  of resignation for Good Reason (as defined below), this
                  Agreement shall terminate and Employee shall not be entitled
                  to further compensation pursuant to this Agreement other than
                  the payment of any unpaid Base Compensation accrued hereunder
                  as of the date of Employee's resignation.

                           (b) Death. If Employee's employment is terminated due
                  to his death, one (1) year of Employee's Base Compensation
                  shall be paid by the Company in lump sum in cash within thirty
                  (30) days after Employee's death to Employee's surviving
                  spouse or estate, and one (1) year of paid

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                  group health and dental insurance benefits shall be provided
                  by the Company to Employee's surviving spouse and the minor
                  children, and after said payments and provision of insurance
                  benefits, this Agreement shall terminate and the Company shall
                  have no obligations to Employee or his legal representatives
                  with respect to this Agreement other than the payment of any
                  unpaid Base Compensation previously accrued hereunder.

                           (c) Discharge.

                                    (i) The Company may terminate Employee's
                           employment for any reason at any time upon written
                           notice thereof delivered to Employee in accordance
                           with Section 11 hereof. In the event that Employee's
                           employment is terminated during the Term by the
                           Company for any reason other than his Misconduct or
                           Disability (both as defined below), then (A) the
                           Company shall pay in lump sum in cash to Employee,
                           within fifteen (15) days following the date of
                           termination, an amount equal to the product of (i)
                           Employee's Base Compensation as in effect immediately
                           prior to Employee's termination, multiplied by (ii)
                           the Remaining Term, (B) for the Remaining Term, the
                           Company, at its cost, shall provide or arrange to
                           provide Employee (and, as applicable, Employee's
                           dependents) with disability, accident and group
                           health insurance benefits substantially similar to
                           those which Employee (and Employee's dependents) were
                           receiving immediately prior to Employee's
                           termination; however, the welfare benefits otherwise
                           receivable by

                                       6
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                           Employee pursuant to this clause (B) shall be reduced
                           to the extent comparable welfare benefits are
                           actually received by Employee (and/or Employee's
                           dependents) during such period under any other
                           employer's welfare plan(s) or program(s) , with
                           Employee being obligated to promptly disclose to the
                           Company any such comparable welfare benefits, (C) in
                           addition to the aforementioned compensation and
                           benefits, the Company shall pay in lump sum in cash
                           to Employee within fifteen (15) days following the
                           date of termination an amount equal to the product of
                           (i) Employee's highest bonus paid by the Company
                           during the most recent three (3) years immediately
                           prior to the Date of Termination, multiplied by (ii)
                           the Remaining Term, and (D) Employee shall be
                           considered as immediately and totally vested in any
                           and all Options previously made to Employee by
                           Company or its subsidiaries.

                                    (ii) Notwithstanding the foregoing
                           provisions of this Section 7, in the event Employee
                           is terminated because of Misconduct, the Company
                           shall have no obligations pursuant to this Agreement
                           after the Date of Termination other than the payment
                           of any unpaid Base Compensation accrued through the
                           Date of Termination. As used herein, "Misconduct"
                           means (a) the continued failure by Employee to
                           substantially perform his duties with the Company
                           (other than any such failure resulting from
                           Employee's incapacity due to physical or mental
                           illness or any such actual or anticipated failure
                           after the issuance of a Notice of Termination by
                           Employee for

                                       7
<PAGE>

                           Good Reason), after a written demand for substantial
                           performance is delivered to Employee by the Board,
                           which demand specifically identifies the manner in
                           which the Board believes that Employee has not
                           substantially performed his duties, (b) the engaging
                           by Employee in conduct which is demonstrably and
                           materially injurious to the Company, monetarily or
                           otherwise (other than such conduct resulting from
                           Employee's incapacity due to physical or mental
                           illness or any such actual or anticipated conduct
                           after the issuance of a Notice of Termination by
                           Employee for Good Reason), or (c) Employee's
                           conviction for the commission of a felony. Anything
                           contained in this Agreement to the contrary
                           notwithstanding, the Chief Executive officer of the
                           Company shall have the sole power and authority to
                           terminate the employment of Employee on behalf of the
                           Company.

                           (d) Disability. If Employee shall have been absent
                  from the full-time performance of Employee's duties with the
                  Company for ninety (90) consecutive calendar days as a result
                  of Employee's incapacity due to physical or mental illness,
                  Employee's employment may be terminated by the Company for
                  "Disability" and Employee shall not be entitled to further
                  compensation pursuant to this Agreement, except that Employee
                  shall (1) be paid monthly (but only for up to a twelve (12)
                  month period beginning with the Date of Termination) the
                  amount by which Employee's monthly Base Compensation exceeds
                  the monthly benefit received by Employee pursuant to any
                  disability insurance covering Employee; (2) continue to

                                       8
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                  receive paid group health and dental insurance benefits for
                  Employee and his dependents for up to twelve (12) month period
                  beginning with Date of Termination; and (3) be considered as
                  immediately and totally vested in any and all options
                  previously granted to Employee by Company or its subsidiaries.

                           (e) Resignation for Good Reason. Employee shall be
                  entitled to terminate his employment for Good Reason as
                  defined herein. If Employee terminates his employment for Good
                  Reason he shall be entitled to the compensation and benefits
                  provided in Paragraph 7 (c) (i) hereof. "Good Reason" shall
                  mean the occurrence of any of the following circumstances
                  without Employee's express written consent unless such breach
                  or circumstances are fully corrected prior to the Date of
                  Termination specified in the Notice of Termination given in
                  respect hereof:

                                    (1) the material breach of any of the
                           Company's obligations under this Agreement without
                           Employee's express written consent,

                                    (2) the continued assignment to Employee of
                           any duties inconsistent with the office of Senior
                           Vice President;

                                    (3) the failure by the Company to pay to
                           Employee any portion of Employee's compensation on
                           the date such compensation is due;

                                    (4) the failure by the Company to continue
                           to provide Employee with benefits substantially
                           similar to those enjoyed by other executive officers
                           who have entered into similar employment agreements
                           with Employer under any of the Company's medical,

                                       9
<PAGE>

                           health, accident, and/or disability plans in which
                           Employee was participating immediately prior to such
                           time; or

                                    (5) the failure of the Company to obtain a
                           satisfactory agreement from any successor to assume
                           and agree to perform this Agreement, as contemplated
                           in Section 13 hereof.

                           In addition, the occurrence of any Corporate Change
                  (as defined below), shall constitute "Good Reason" hereunder,
                  but only if Employee gives notice of his intent to terminate
                  his employment within ninety (90) days following the effective
                  date of such Corporate Change.

                           A "Corporate Change" shall occur if (i) the Company
                  shall not be the surviving entity in any merger or
                  consolidation (or survives only as a subsidiary of another
                  entity), (ii) the Company sells all or substantially all of
                  its assets to any other person or entity (other than a
                  wholly-owned subsidiary), (iii) the Company is to be dissolved
                  and liquidated, (iv) when any "person" as defined in Section
                  3(a)(9) of the Securities Exchange Act of 1934, as amended
                  (the "Exchange Act"), and as used in Sections 13 (d) and 14
                  (d) thereof, including a "group" as defined in Section 13 (d)
                  of the Exchange Act but excluding any 10% or larger
                  shareholder of record of the Company as of January 10, 2000,
                  directly or indirectly, becomes the "beneficial owner" (as
                  defined in Rule 13d-3 under the Exchange Act, as amended from
                  time to time), of securities of the Company representing 20%
                  or more of the combined voting power of the Company's then
                  outstanding securities which are entitled to vote with respect
                  to the election of the directors of the Company; (v) as a
                  result of or in connection

                                       10
<PAGE>

                  with a contested election the members of the Board as of the
                  date of this Agreement shall cease to constitute a majority of
                  the Board. "Contested" as used herein shall not include
                  election by a majority of the current Board.

                           (f) Notice of Termination. Any purported termination
                  of Employee's employment by the Company under Sections
                  7(c)(ii) or 7(d), or by Employee under Section 7(e), shall be
                  communicated by written Notice of Termination to the other
                  party hereto in accordance with Section 11 hereof. For
                  purposes of this Agreement, a "Notice of Termination" shall
                  mean a notice which, if by the Company and is for Misconduct
                  or Disability, shall set forth in reasonable detail the reason
                  for such termination of Employee's employment, or in the case
                  of resignation by Employee for Good Reason, said notice must
                  specify in reasonable detail the basis for such resignation. A
                  Notice of Termination given by Employee pursuant to Section
                  7(e) shall be effective even if given after the receipt by
                  Employee of notice that the Board has set a meeting to
                  consider terminating Employee for Misconduct. Any purported
                  termination for which a Notice of Termination is required
                  which is not effected pursuant to this Section 7(f) shall not
                  be effective.

                           (g) Date of Termination, Etc. "Date of Termination"
                  shall mean the date specified in the Notice of Termination,
                  provided that the Date of Termination shall be at least 15
                  days following the date the Notice of Termination is given.
                  Notwithstanding the foregoing, in the event Employee is
                  terminated for Misconduct, the Company may refuse to allow

                                       11
<PAGE>

                  Employee access to the Company's offices (other than to allow
                  Employee to collect his personal belongings under the
                  Company's supervision) prior to the Date of Termination.

                           (h) Mitigation. Employee shall not be required to
                  mitigate the amount of any payment provided for in this
                  Section 7 by seeking other employment or otherwise, nor shall
                  the amount of any payment provided for in this Agreement be
                  reduced by any compensation earned by Employee as a result of
                  employment by another employer, except that any severance
                  amounts payable to Employee pursuant to the Company's
                  severance plan or policy for employees in general shall reduce
                  the amount otherwise payable pursuant to Sections 7(c)(i) or
                  7(e).

                           (i) Excess Parachute Payments. Notwithstanding
                  anything in this Agreement to the contrary, to the extent that
                  any payment or benefit received or to be received by Employee
                  hereunder in connection with the termination of Employee's
                  employment would, as determined by tax counsel selected by the
                  Company, constitute an "Excess Parachute Payment" (as defined
                  in Section 280G of the Internal Revenue Code), the Company
                  shall fully "gross-up" such payment so that Employee is in the
                  same "net" after-tax position he would have been if such
                  payment and gross-up payments had not constituted Excess
                  Parachute Payments.

         8. Non-Compete.

         8.1 No Other Activities. Employer agrees that during the term of this
Agreement, he shall not, directly or indirectly, represent or otherwise engage
in or participate in, the business or ventures of any person, firm, partnership,
association,

                                       12
<PAGE>

or corporation other than the Company, without first obtaining the written
consent of the Company. Employee further agrees that during the term of this
Agreement, he shall not, directly or indirectly, solicit or attempt to solicit
any products or agreements for the purpose of using the products or agreements
in the formation of a business outside of the Company, regardless of whether any
such products or the subject of such agreements are then being handled by the
Company.

         8.2 Non-Disclosure. Employee further agrees that he will not, during or
after the term of his employment, disclose to any person, firm, partnership,
association, or corporation, the names and addresses of any past or present
customers, or prospective customers, of the Company, any of their methods or
practices of obtaining business, their trade secrets, consultant contracts and
the details thereof, their pricing policies, their operational methods, their
marketing plans or strategies, their business acquisition plans and all other
information pertaining to the business of the Company that is not publicly
available. Employee agrees to keep all information gained as a result of his
relationship with the Company on a confidential basis and shall not disclose
that information to anyone not authorized by the Company to receive information.
If Employee should cease, either voluntarily or involuntarily, to be an employee
of the Company he hereby expressly agrees that, for a period of two (2) years
following termination of his employment, he shall not assist any competitor or
prospective competitor located in the territories serviced by the Company (as
set forth in Attachment 1 or otherwise) during his employment in any way
detrimental to the Company through the use of any information gained as a result
of his employment with the Company. Employee agrees that all computer programs,
print-outs, customer lists, methods, forms, systems and procedures used

                                       13
<PAGE>

by the Company constitute the exclusive property and will remain the exclusive
property of the Company and agrees that he will not disclose any of these
matters without the prior written permission of the Company.

         8.3 Non-Solicitation, etc. In further consideration of the other terms
and provisions of this Agreement, and to protect the vital interests of the
Company, upon termination of his employment for any reason, for a period of two
(2) years after the termination of his employment, Employee agrees and binds
himself that he shall not, directly or indirectly, or as a member, shareholder,
officer, director, consultant or employee of any other person or entity, compete
with the Company or own, manage, operate, join, control or participate in the
ownership, management, operation, or control of, or become employed by, consult
or advise, or be connected in any manner with any business or activity which is
in actual, direct or indirect competition or anticipated competition with the
Company within those counties, parishes, municipalities or other places listed
in Attachment 1 annexed hereto and made a part hereof, so long as the Company
carries on the business presently conducted by the Company, being the supply of
industrial piping systems for new construction and retrofit projects, which
includes design and engineering services, piping system fabrication,
manufacturing and sale of specialty pipe fittings, design and fabrication of
pipe support systems and industrial and commercial construction and maintenance.
Not by way of limitation or exclusion, Employee shall not, within the aforesaid
locations and during the aforesaid time period, call upon, solicit, advise or
otherwise do, or attempt to do, business with any customers or distributors of
the Company with whom the Company had any dealings during the period of
Employee's employment hereunder or take away or interfere or attempt to
interfere with any

                                       14
<PAGE>

custom, trade, business or patronage of the Company or interfere with or attempt
to interfere with any officers, employees, distributors, representatives or
agents of the Company or employ or induce or attempt to induce any of them to
leave the employ of the Company or violate the terms of their contracts, or any
employment arrangements, with the Company. Employee acknowledges and agrees that
any breach of the foregoing covenant not to compete would cause irreparable
injury to the Company and that the amount of injury would be impossible or
difficult to fully ascertain. Employee agrees that the Company shall, therefore,
be entitled to obtain an injunction restraining any violation, further violation
or threatened violation of the covenant not to compete hereinabove set forth, in
addition to any other remedies that the Company may pursue.

         8.4 Duration. If the two (2) year period referred to in any of this
Article 8 shall be finally determined by a court to exceed the maximum period
which is permissible by applicable law, the said period shall be reduced to the
maximum period permitted by such law.

         9. Non-exclusivity of Rights. Nothing in this Agreement shall prevent
or limit Employee's continuing or future participation in any benefit, bonus,
incentive, or other plan or program provided by the Company or any of its
affiliated companies and for which Employee may qualify, nor shall anything
herein limit or otherwise adversely affect such rights as Employee may have
under any Options with the Company or any of its affiliated companies.

         10. Assignability. The obligations of Employee hereunder are personal
and may not be assigned or delegated by him or transferred in any manner
whatsoever, nor are such obligations subject to involuntary alienation,
assignment or transfer. The

                                       15
<PAGE>

Company shall have the right to assign this Agreement and to delegate all
rights, duties and obligations hereunder, either in whole or in part, to any
parent, affiliate, successor or subsidiary organization or company of the
Company, so long as the obligations of the Company under this Agreement remain
the obligations of the Company.

         11. Notice. For the purpose of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed to the
Company at its principal office address, directed to the attention of the Board
with a copy to the Secretary of the Company, and to Employee at Employee's
residence address on the records of the Company or to such other address as
either party may have furnished to the other in writing in accordance herewith
except that notice of change of address shall be effective only upon receipt.

         12. Validity. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

         13. Successors; Binding Agreement.

                           (a) The Company will require any successor (whether
                  direct or indirect, by purchase, merger, consolidation or
                  otherwise) to all or substantially all of the business and/or
                  assets of the Company to expressly assume and agree to perform
                  this Agreement in the same manner and to the same extent that
                  the Company would be required to perform it if no such
                  succession had taken place. Failure of the Company

                                       16
<PAGE>

                  to obtain such agreement prior to the effectiveness of any
                  such succession shall be a breach of this Agreement and shall
                  entitle Employee to compensation from the Company in the same
                  amount and on the same terms as he would be entitled to
                  hereunder if he terminated his employment for Good Reason,
                  except that for purposes of implementing the foregoing, the
                  date on which any such succession becomes effective shall be
                  deemed the Date of Termination. As used herein, the term
                  "Company" shall include any successor to its business and/or
                  assets as aforesaid which executes and delivers the Agreement
                  provided for in this Section 13 or which otherwise becomes
                  bound by all terms and provisions of this Agreement by
                  operation of law.

                           (b) This Agreement and all rights of Employee
                  hereunder shall inure to the benefit of and be enforceable by
                  Employee's personal or legal representatives, executors,
                  administrators, successors, heirs distributees, devisees and
                  legatees. if Employee should die while any amounts would be
                  payable to him hereunder if he had continued to live, all such
                  amounts, unless otherwise provided herein, shall be paid in
                  accordance with the terms of this Agreement to Employee's
                  devisee, legatee, or other designee or, if there be no such
                  designee, to Employee's estate.

         14. Miscellaneous. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by Employee and such officer as may be specifically
authorized by the Board. No waiver by either party hereto at any time of any
breach by the other party hereto of, or in compliance with, any condition or
provision of this Agreement to be

                                       17
<PAGE>

performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time. This
Agreement is an integration of the parties agreement; no agreement or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party, except those which are set
forth expressly in this Agreement. THE VALIDITY, INTERPRETATION, CONSTRUCTION
AND PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
LOUISIANA.

         15. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

         16. Arbitration. Either party may elect that any dispute or controversy
arising under or in connection with this Agreement be settled by arbitration in
Baton Rouge, Louisiana in accordance with the rules of the American Arbitration
Association then in effect. If the parties cannot mutually agree on an
arbitrator, then the arbitration shall be conducted by a three arbitrator panel,
with each party selecting one arbitrator and the two arbitrators so selected
selecting a third arbitrator. The findings of the arbitrator(s) shall be final
and binding, and judgment may be entered thereon in any court having
Jurisdiction. The findings of the arbitrator(s) shall not be subject to appeal
to any court, except as otherwise provided by applicable law. The arbitrator(s)
may, in his or her (or their) own discretion, award legal fees and costs to the
prevailing party.

                                       18
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement on October
 24, 2002, effective for all purposes as provided above.

                                       THE SHAW GROUP INC.

                                       By
                                       Name:  /s/ J. M. Bernhard, Jr.
                                            ----------------------------

EMPLOYEE:
Name:    /s/ T. A. Barfield, Jr.
       ----------------------------

       T. A. Barfield, Jr.
       Senior Vice President

                                       19

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