Document:

Amended and Restated 2002 Stock Incentive Plan

 Exhibit 10.2 
 GULF ISLAND FABRICATION, INC. 
 AMENDED AND RESTATED 
 2002 LONG-TERM INCENTIVE PLAN 
 (as of
April 26, 2006) 
 1. Purpose. The purpose of the 2002 Long-Term Incentive Plan (the “Plan”) of Gulf Island
Fabrication, Inc. (“Gulf Island”) is to increase shareholder value and to advance the interests of Gulf Island and and its subsidiaries (collectively, the “Company”) by furnishing stock-based economic incentives (the
“Incentives”) designed to attract, retain, reward and motivate key employees, officers, directors and consultants or advisors to the Company and to strengthen the mutuality of interests between such employees, officers and directors and
Gulf Island’s shareholders. Incentives consist of opportunities to purchase or receive shares of common stock, no par value per share, of Gulf Island (the “Common Stock”), on terms determined under the Plan. As used in the Plan, the
term “subsidiary” means any corporation, limited liability company or other entity, of which Gulf Island owns (directly or indirectly) within the meaning of Section 424(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, membership interests or other equity interests issued thereby. 
 2. Administration. 
 2.1 Composition. The Plan shall be administered by the Compensation
Committee of the Board of Directors of Gulf Island 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
(“Section 162(m)”). 
 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 or provide notices to 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. Directors who are not also employees of the Company (“Outside Directors”) may receive awards under the Plan only as specifically provided in
Section 10 hereof. 
 3. Eligible Participants. Key employees, officers and directors of the Company and persons providing
services as consultants or advisors to the Company shall become eligible to 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, 
  

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 the Committee may delegate to appropriate officers of the Company its authority to designate participants, to determine
the size and type of Incentives to be received by those participants and to set and modify the terms of the Incentives; provided, however, that the per share exercise price of any options granted by an officer, rather than by the Committee, shall be
equal to the Fair Market Value (as defined in Section 11.11) of a share of common stock. Outside Directors may participate in the Plan only as specifically provided in Section 10 hereof. 
 4. Types of Incentives. Incentives may be granted under the Plan to eligible participants in the forms of (a) incentive stock options;
(b) non-qualified stock options; (c) restricted stock and (d) Other Stock-Based Awards (as defined in Section 8 hereof). 
 5. Shares Subject to the Plan. 
 5.1 Number of Shares. Subject to adjustment as provided in
Section 11.5, the maximum number of shares of Common Stock that may be delivered to participants and their permitted transferrees under the Plan shall be 500,000 shares. 
 5.2 Share Counting. To the extent any shares of Common Stock covered by a stock option are not delivered to a participant or permitted transferee
because the Option is forfeited or canceled, or shares of Common Stock are not delivered because an Incentive is paid or settled in cash or used to satisfy the applicable tax withholding obligation, such shares shall not be deemed to have been
delivered for purposes of determining the maximum number of shares of Common Stock available for delivery under this Plan. In the event that shares of Common Stock are issued as an Incentive 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 the exercise price of any stock option granted under the Plan or the applicable withholding tax obligation is satisfied by
tendering shares of Common Stock to the Company (by either actual delivery or by attestation), only the number of shares of Common Stock issued net of the shares of Common Stock tendered shall be deemed delivered for purposes of determining the
maximum number of shares of Common Stock available for delivery under the Plan. 
 5.3 Limitations on Awards. Subject to
Section 11.5, the following additional limitations are imposed under the Plan: 
 A. The maximum number of shares
of Common Stock that may be issued upon exercise of stock options intended to qualify as incentive stock options under Section 422 of the Code shall be 500,000 shares. Notwithstanding any other provision herein to the contrary, (i) all
shares issuable under incentive stock options shall be counted against this limit and (ii) shares that are issued and are later forfeited, cancelled or reacquired by the Company, shares withheld to satisfy withholding tax obligations and shares
delivered in payment of the option exercise price or withholding taxes shall have no effect on this limitation. 
 B.
The maximum number of shares of Common Stock that may be covered by Incentives granted under the Plan to any one individual during any one calendar-year period shall be 200,000. 
  

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 C. [Intentionally deleted] 
 D. The maximum dollar amount of cash compensation that may be paid as an Other Stock-Based Award to a participant in any calendar
year is $200,000. 
 5.4 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 Gulf Island.
Stock options granted under the Plan may be incentive stock options (as such term is defined in Section 422 of the Code) 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: 
 6.1 Price. The exercise price per share shall be determined by the Committee, subject to adjustment under Section 11.5; 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 in case of a stock option granted in assumption or substitution for an outstanding award of a company acquired by the Company or with which the Company combines. 
 6.2 Number. The number of shares of Common Stock subject to the option shall be determined by the Committee, subject to Section 5 and subject
to adjustment as provided in Section 11.5. 
 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 11.10. 
 6.4 Repurchase. Upon approval of
the Committee, the Company may repurchase a previously granted stock option from a participant by mutual agreement before such option has been exercised by payment to the participant of the amount per share by which: (i) the Fair Market Value
(as defined in Section 11.11) of the Common Stock subject to the option on the business day immediately preceding the date of purchase exceeds (ii) the exercise price. 
 6.5 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 (a) in cash; (b) by check; (c) by
delivery of shares of Common Stock which, unless otherwise determined by the Committee, shall have been held by the optionee for at least six months, and 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) by delivery of irrevocable written instructions to a broker approved by the Company (with a copy to the Company) to immediately sell a portion of the shares issuable under the option
and to deliver promptly to the Company the amount of sale proceeds (or loan proceeds if the broker lends funds to the participant for delivery to the Company) to pay the exercise price; or (e) in such other manner as may be authorized from time
to time by the Committee. 
  

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 6.6 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. 
 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 Gulf Island 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 eligible participants 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, including the attainment of specified performance goals, as the Committee may determine, subject to the provisions of the Plan. To the extent restricted stock is intended to qualify as “performance-based compensation” under
Section 162(m), it must be granted subject to the attainment of performance goals as described in Section 9 below and meet the additional requirements imposed by Section 162(m). 
 7.2 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 and after which the shares of restricted stock shall be vested (the “Restricted Period”). Except for shares of restricted stock that vest based on the attainment of performance
goals, the Restricted Period shall be a minimum of three years, with incremental 
  

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 vesting of portions of the award over the three-year period permitted. 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 allowed, with incremental vesting of portions of the award over the one-year period 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 11.3 and under the conditions described in Section 11.10 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 Gulf Island Fabrication, Inc. 2002 Long-Term Incentive Plan (the “Plan”), and an agreement entered into between the registered owner and Gulf Island
Fabrication, Inc. thereunder. Copies of the Plan and the agreement are on file at the principal office of the Company. 
 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 Committee may, in its
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 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. 
 7.6 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. 
 7.7 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. 
  

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 8. Other Stock-Based Awards. 
 8.1 Grant of Other Stock-Based Awards. Subject to the limitations described in Section 8.2 hereof, the Committee may grant to eligible
participants “Other Stock-Based Awards,” which shall consist of awards (other than options or restricted stock in Sections 6 and 7) the value of which is based in whole or in part on the value of shares of Common Stock. 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, or appreciation in the value 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 this Plan. The Committee shall determine the terms and conditions of any Other Stock-Based
Award (including which rights of a shareholder, if any, the recipient shall have with respect to Common Stock associated with any such award) and may provide that such award is payable in whole or in part in cash. An Other Stock-Based Award may be
subject to the attainment of such specified performance goals or targets as the Committee may determine, subject to the provisions of this Plan. To the extent that an Other Stock-Based Award is intended to qualify as “performance-based
compensation” under Section 162(m), it must be granted subject to the attainment of performance goals as described in Section 9 below and meet the additional requirements imposed by Section 162(m). 
 8.2 Limitations. Other Stock-Based Awards granted under this Section 8 shall be subject to a vesting period of at least three years, with
incremental vesting of portions of the award over the three-year period permitted; provided, however, that if the vesting of the award is based upon the attainment of performance goals, a minimum vesting period of one year is allowed, with
incremental vesting of portions of the award over the one-year period permitted, and further provided that the Committee may make special awards under this Section 8 with respect to an aggregate of no more than 25,000 shares of Common Stock, as
adjusted under Section 11.5, which special awards shall not be subject to any minimum vesting requirements. 
 9. Section 162(m)
Awards. 
 9.1 Performance Goals. To the extent that shares of restricted stock or Other Stock-Based Awards granted under
the Plan are intended to qualify as “performance-based compensation” under Section 162(m), the vesting, grant or payment of such awards shall be conditioned on the achievement of one or more performance goals and must satisfy the
other requirements of Section 162(m). The performance goals pursuant to which such awards shall vest, be granted or be paid out shall be any or a combination of the following performance measures applied to the Company, Gulf Island, a division
or a subsidiary: 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. 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. For performance-based
compensation under Section 162(m), the Committee may not waive any of the pre-established performance goal objectives, except for an automatic waiver under Section 11.10 hereof, or as may be provided by the Committee in the event of death
or disability. 
  

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 9.2 Adjustments to Performance Goals. The terms used in Section 9.1 to describe the
performance goals shall have the same meanings as used in the Company’s financial statements, or if the terms are not used in the Company’s financial statements, they shall have the meanings generally applied pursuant to generally accepted
accounting principles, or as used in the industry, as applicable. The Committee may appropriately adjust any evaluation of performance under a performance goal to exclude any of the following events that occurs during a performance period:
(i) asset write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results, (iv) accruals for reorganization
and restructuring programs, and (v) extraordinary, non-recurring items as described in Accounting Principles Board Opinion No. 30 and/or in management’s discussion and analysis of financial condition and results of operations
appearing in the Company’s annual report to shareholders for the applicable year. 
 10. Stock Options for Outside Directors.

 10.1 Grant of Options. During each calendar year that the Plan remains in effect, each Outside Director may be granted, in the
discretion of the Committee, non-qualified stock options to purchase up to 5,000 shares of Common Stock, the exact number of which shall be set each year by the Committee. 
 10.2 Exercisability of Stock Options. The stock options granted to Outside Directors under this Section 10 shall be exercisable six months
after the date of grant and shall expire no later than ten years following the date of grant. 
 10.3 Exercise Price. The Exercise
Price of the Stock Options granted to Outside Directors 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 6.5 hereof.

 10.4 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 
 A. In the event of termination of Board service as a result of death or disability, the stock options may be exercised within two
years from the date of termination of Board service; and 
 B. In the event of termination of Board service as a result
of retirement (at age 65 or later or after having completed five or more years of service on the Board), the stock options may be exercised within five years from the date of termination of Board service; 
 and further provided, that no stock options may be exercised later than ten years after the date of grant. 
  

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 11. General. 
 11.1 Duration. Subject to Section 11.9, 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 otherwise 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. 
 11.2 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; 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. 
 11.3 Effect of Termination of Employment or Death. Except as provided
in Section 10.4 with respect to Outside Directors, in the event that a participant ceases to be an employee of the Company or to provide services to 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 and provided in the Incentive Agreement. 
 11.4 Additional Conditions. 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. 
  

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 11.5 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, other securities or property (including cash) to which the holders of the shares of Common Stock are entitled pursuant to the transaction. In the event of any recapitalization, stock dividend, stock split, combination of shares
or other similar change in the Common Stock, the number of shares of Common Stock then subject to the Plan, including shares subject to outstanding Incentives, and all limitations on the number of shares that may be issued hereunder 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 and the performance objectives of any Incentive, shall also 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 the Plan
and the substitution or adjustment shall be limited by deleting any fractional share. 
 11.6 Withholding.
 A. The Company shall have the right to withhold from any payments made or stock issued under the Plan or to collect as a condition
of payment, issuance or vesting, 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 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 deliver currently owned shares of Common
Stock or to have the Company withhold shares of Common Stock, in each case having a value equal to the minimum statutory amount required to be withheld under federal, state and local law. The value of the shares to be delivered or 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 Code with respect to shares of restricted stock, an Election to have shares withheld to satisfy withholding taxes is not
permitted to be made. 
 11.7 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. 
  

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 11.8 Deferral Permitted. Payment of an Incentive may be deferred at the option of the participant
if permitted in the Incentive Agreement. 
 11.9 Amendments to or Termination of the Plan. The Board may amend or discontinue this
Plan at any time; provided, however, that no such amendment may: 
 A. without the approval of the shareholders,
(i) except for adjustments permitted herein, increase the maximum number of shares of Common Stock that may be issued through the Plan, (ii) materially increase the benefits accruing to participants under the Plan or (iii) materially
expand the classes of persons eligible to participate in the Plan, or 
 B. materially impair, without the consent of
the recipient, an Incentive previously granted. 
 11.10 Change of Control. 
 A. A Change of Control shall mean: 
 (i) the acquisition by any person of beneficial ownership of 30% or more of the outstanding shares of the Common Stock or 30% or more of the combined voting power of Gulf Island’s then outstanding
securities entitled to vote generally in the election of directors; provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change of Control: 
 (a) any acquisition (other than a Business Combination (as defined below) which constitutes a Change of Control under
Section 11.10(A)(iii) hereof) of Common Stock directly from the Company, 
 (b) any acquisition of Common Stock
by the Company, 
 (c) any acquisition of Common Stock by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company, or 
 (d) any acquisition of Common Stock by
any corporation pursuant to a Business Combination that does not constitute a Change of Control under Section 11.10(A)(iii) hereof; or 
 (e) any acquisition by Huey J. Wilson, Alden J. Laborde, their Immediate Family Members or any entity controlled by Huey J. Wilson, Alden J. Laborde or their Immediate Family Members, or 
 (ii) individuals who, as of January 1, 2002, constituted the Board of Directors of Gulf Island (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board of Directors; provided, however, that any individual becoming a director subsequent to such date whose election, or 
  

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 nomination for election by Gulf Island’s shareholders, was approved by a vote of at least two-thirds
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 
 (iii) consummation of a reorganization, share exchange, merger or consolidation (including any such transaction involving any
direct or indirect subsidiary of Gulf Island) or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”); provided, however, that in no such case shall any such transaction constitute a
Change of Control if immediately following such Business Combination: 
 (a) the individuals and entities who were the
beneficial owners of Gulf Island’s outstanding Common Stock and Gulf Island’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
surviving or successor corporation, or, if applicable, the ultimate parent company thereof (the “Post-Transaction Corporation”), and 
 (b) except to the extent that such ownership existed prior to the Business Combination, no person (excluding the Post-Transaction Corporation and any employee benefit plan or related trust of either Gulf
Island, the Post-Transaction Corporation or any subsidiary of either corporation) beneficially owns, directly or indirectly, 25% or more of the then outstanding shares of common stock of the corporation resulting from such Business Combination or
25% or more of the combined voting power of the then outstanding voting securities of such corporation, and 
 (c) at
least a majority of the members of the board of directors of the Post-Transaction Corporation were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board of Directors, providing for such
Business Combination; or 
 (iv) approval by the shareholders of Gulf Island of a complete liquidation or dissolution
of Gulf Island. 
 For purposes of this Section 11.10, the term “person” shall mean a natural person or entity, and shall also
mean the group or syndicate created when two or more persons act 
  

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 as a syndicate or other group (including, without limitation, a partnership or limited partnership) for
the purpose of acquiring, holding, or disposing of a security, except that “person” shall not include an underwriter temporarily holding a security pursuant to an offering of the security. 
 B. Upon a Change of Control of the type described in clause (A)(i) or (A)(ii) of this Section 11.10 or immediately prior to
any Change of Control of the type described in clause (A)(iii) or (A)(iv) of this Section 11.10, all outstanding Incentives granted pursuant to this Plan shall automatically become fully vested and exercisable, all restrictions or limitations
on any Incentives shall automatically lapse and, unless otherwise provided in the applicable Incentive Agreement, all performance criteria and other conditions relating to the payment of Incentives shall be deemed to be achieved or waived by Gulf
Island without the necessity of action by any person. As used in the immediately preceding sentence, ‘immediately prior’ to the Change of Control shall mean sufficiently in advance of the Change of Control to permit the grantee to take all
steps reasonably necessary (i) if an optionee, to exercise any such option fully and (ii) to deal with the shares purchased or acquired under any such option or any Other Stock-Based Award and any formerly restricted shares on which
restrictions have lapsed so that all types of shares may be treated in the same manner in connection with the Change of Control as the shares of Common Stock of other shareholders. 
 C. No later than 30 days after a Change of Control of the type described in subsections (A)(i) or (A)(ii) of this
Section 11.10 and no later than 30 days after the approval by the Board of a Change of Control of the type described in subsections (A)(iii) or (A)(iv) of this Section 11.10, the Committee, acting in its sole discretion without the consent
or approval of any participant (and notwithstanding any removal or attempted removal of some or all of the members thereof as directors or Committee members), may act to effect one or more of the alternatives listed below, which may vary among
individual participants and which may vary among Incentives held by any individual participant: 
 (i) require that all
outstanding options or Other Stock-Based Awards 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 and Other Stock-Based Awards and all
rights of participants thereunder shall terminate, 
 (ii) 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), 
 (iii) provide for mandatory conversion of some or all of the outstanding options or Other Stock-Based Awards 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 and Other Stock-Based Awards shall be deemed automatically cancelled and the Company shall pay, or cause to be paid, to each

  

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 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 or Other Stock-Based Award, as defined and calculated below, over the exercise price of such options or the exercise or base price of such Other Stock-Based Awards 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, or 
 (iv)
provide that thereafter, upon any exercise of an option or Other Stock-Based Award that entitles the holder to receive Common Stock, the holder shall be entitled to purchase or receive under such option or Other Stock-Based Award, in lieu of the
number of shares of Common Stock then covered by such option or Other Stock-Based Award, the number and class of shares of stock or other securities or property (including, without limitation, cash) to which the holder would have been entitled
pursuant to the terms of the agreement providing for the reorganization, share exchange, merger, consolidation or asset sale, if, immediately prior to such Change of Control, the holder had been the record owner of the number of shares of Common
Stock then covered by such option or Other Stock-Based Award. 
 D. For the purposes of paragraph (iii) of
Section 11.10(C), the “Change of Control Value” shall equal the amount determined by whichever of the following items is applicable: 
 (i) the per share price to be paid to shareholders of Gulf Island in any such merger, consolidation or other reorganization, 
 (ii) the price per share offered to shareholders of Gulf Island in any tender offer or exchange offer whereby a Change of Control
takes place, 
 (iii) 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 
 (iv) in the event that the consideration offered to shareholders of Gulf Island in any transaction described in this Section 11.10 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. 
 11.11 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, or if no sale of the Common Stock shall have been made on that day, on the next preceding day on which
there was a sale of the Common Stock; (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 
  

 - 13 - 

 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. 
  

 - 14 -Managing Director Services Contract

 Exhibit 10.1 
 SERVICE CONTRACT 
 FOR MANAGING DIRECTOR 
 between 
 Xerium Germany
Holding GmbH 
 Föhrstraße 39 
 72760 Reutlingen 
 represented by its sole shareholder Xerium Technologies Ltd., 
 in turn represented by its director Thomas Gutierrez 
 - “the Company” - 
 and 
 Mr. Joan Badrinas Ardevol 
 Bitzengarten 9 
 56237 Nauort 
 - “Mr. Badrinas” or
“the Managing Director” - 
 Xerium Technologies Ltd., as the sole shareholder of the Company, intends to employ Mr. Badrinas as managing
director of the Company. On this basis the Parties agree with effect as of 26 July 2006 upon the following Service Contract (“Service Contract”): 
  

	1.	Position and Scope of Duties 

  

	1.1	Subject to the following provisions, Mr. Badrinas shall be appointed as managing director (Geschäftsführer) of the Company. In such capacity he will manage in
particular all business activities of the Company and its subsidiaries. Within the Xerium Group he shall be President, Clothing Europe, with his regular place of work being Reutlingen. 

  

	1.2	The shareholder reserves the right to appoint additional managing directors (Geschäftsführer) and/or assign different or additional responsibilities to
Mr. Badrinas, which are reasonable and compatible with his experience and knowledge and which are comparable with the tasks previously assigned, and determine an allocation of responsibilities as well as the power to represent the Company
singly or jointly. 

	1.3	The Managing Director shall perform his duties by observing the diligence of a prudent businessman in accordance with the law, the provisions of this Service Contract, the
Company’s Articles of Association, the general directives and specific instructions given by the shareholder or the CEO of Xerium Technologies, Inc., as well as the Standing Orders for Management as amended from time to time. He shall
furthermore comply with any applicable policies of the Company and Xerium Technologies, Inc. from time to time in effect, including, without limitation, the Xerium Technologies, Inc. Corporate Code of Business Conduct and Ethics.

  

	1.4	The Managing Director shall report to the CEO of Xerium Technologies, Inc., to any member of the management or to any other employee of Xerium Group which the CEO of Xerium
Technologies, Inc. may determine. The Managing Director may consult the CEO of Xerium Technologies, Inc. on any issue that is beyond the ordinary operation of the business. In case of doubt, he shall request directions in writing. The position of
the CEO of Xerium Technologies, Inc. is currently held by Mr. Thomas Gutierrez. 

  

	1.5	The Managing Director shall work whatever hours are required. Furthermore, the Managing Director is prepared to undertake business trips within and outside of Germany as the
business requires. 

  

	1.6	The Managing Director agrees to be appointed as managing director (“Geschäftsführer”) of Huyck Austria GmbH and to act in such capacity as required by Austrian
law, resolutions of the shareholder of Huyck Austria GmbH and its Articles of Association. The work performed in such capacity is covered by the base salary payable according to Section 4 of this Contract and will not entitle the Managing
Director to additional consideration. Necessary business expenses incurred by acting as managing director of Huyck Austria GmbH shall be reimbursed in accordance with the reimbursement policies of Huyck Austria GmbH as amended from time to time. The
activities of the Managing Director for Huyck Austria GmbH shall not be construed as a separate employment or service relationship with Huyck Austria GmbH but will be limited to a mandate according to Article 1002 Austrian Civil Code
(“Allgemeines Bürgerliches Gesetzbuch – ABGB”). 

  

	2.	Other Activities 

  

	2.1	The Managing Director shall devote his full working time and ability to the Company’s business. For the duration of this Service Contract, any other activity, apart from
services rendered for affiliated companies, be it with or without remuneration, is subject to the explicit prior written consent of the shareholder or the CEO of Xerium Technologies, Inc. 

  

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	2.2	Academic and journalistic activity is permitted, provided that the Company is informed previously and that such activity does not adversely affect the function and working capacity
of the Managing Director, a disclosure of confidential information is not to be expected, and this does not in any other way interfere with the interests of the Company. 

  

	3.	Power of Representation/Management Authority 

  

	3.1	The Managing Director shall have single signing authority as provided for by shareholder resolution. The Managing Director is not exempt from the restrictions of Section 181
German Civil Code (Bürgerliches Gesetzbuch). 

  

	3.2	For all business transactions beyond the ordinary operations of the Company, the Managing Director shall obtain the prior written approval of the shareholder. The Managing Director
shall adhere to any specific distribution and/or limitation of authorities applicable for the management of the Company. 

  

	4.	Base Salary 

  

	4.1	The Managing Director shall be entitled to an annual gross base salary in the amount of EUR 275,000, the net amount of which shall be paid in 12 equal monthly installments, payable
in arrears. 

  

	 	In addition, the Company shall pay half of the mandatory social security contributions (Sozialversicherungsbeiträge) including contributions to state unemployment
insurance, health insurance, nursing care insurance and state pension insurance. In case the Managing Director opts for a private health insurance instead of the statutory health insurance, the Company will bear half of the contributions to the
Managing Director’s private health insurance up to a maximum of the amount which it would have to pay for the statutory health insurance (BDO-Satz). 

  

	  	Upon payment of the above-mentioned salary, all activities the Managing Director has to perform under this Service Contract shall be compensated. This also applies to activities for
the benefit of other companies of the group. 

  

	4.2	The Managing Director is not entitled to pledge or assign his remuneration without having obtained the prior written consent of the shareholder. 

  

 3 

	5.	Bonus Plan, Right to Amend 

  

	5.1	The Managing Director shall be entitled to participate in cash bonus plans (the “Annual Bonus Plans”) from time to time in effect for senior executives of Xerium
Technologies, Inc. generally (it being understood that effective as of the date hereof, there is single such plan called the “Xerium Technologies, Inc. 2006 Cash Incentive Bonus Plan”). The terms of each Annual Bonus Plan and Managing
Director’s participation therein shall be determined by the Board of Directors of Xerium Technologies, Inc. or the compensation committee of such board. The Managing Director’s initial target participation level under such plans shall be
at 75% of his base salary. Any awards under the Annual Bonus Plan shall be payable only to the extent earned pursuant to the terms of the applicable Annual Bonus Plan and shall be subject to adjustment in accordance with the terms of the applicable
Annual Bonus Plan. Any award with respect to 2006 shall be prorated in order to reflect that the Managing Director’s service to the Company commenced after the beginning of 2006. The Managing Director confirms that he has received a copy of the
Xerium Technologies, Inc. 2006 Cash Incentive Bonus Plan and the award to be made to him thereunder with respect to 2006. 

  

	5.2	Any awards under the Annual Bonus Plan are of a voluntary nature. The payment of an award under the Annual Bonus Plan with respect to one year shall not be deemed to create an
obligation to pay an award with respect to any future year. The Managing Director shall not acquire a legal claim to any award under the Annual Bonus Plan even if awards are granted over a longer period of time and/or if they are repeatedly granted
without the Company specifically reserving the right to claim the voluntariness on each occasion of the awards being granted. Therefore, the Board of Directors of Xerium Technologies, Inc. or compensation committee thereof, may, for any given future
year, alter, modify, add to or delete any Annual Bonus Plan at any time as it, in its sole judgment, determines to be appropriate. 

  

	6.	Continued Remuneration in Case of Sickness 

  

	6.1	In the first six months of an inability to work due to sickness the Managing Director is entitled to continue to receive his full net base salary according to Section 4,
subject to Section 6.2 below in the case that the Managing Director is entitled to receive amounts from third parties in connection with such illness (through insurance coverage or otherwise). 

  

	6.2	If the Managing Director has compensation claims against third parties due to the loss of his earnings, caused by the inability to work, he shall assign such claims to the Company
in the amount of the continued payment of remuneration. 

  

 4 

	6.3	In all other respects the provisions of the Continued Salary Payment Act (Entgeltfortzahlungsgesetz) shall apply. 

  

	7.	Additional Benefits, Reservation of Right to Invoke Voluntary Nature of Benefits 

  

	7.1	The Company will recommend to the Compensation Committee of the Board of Directors of Xerium Technologies, Inc., to award Restricted Stock Units in mid 2007. Size and conditions of
such an award will be at the discretion and fully determined by the Compensation Committee of the Board of Directors of Xerium, Inc., and the Company will not be liable in connection with any such award. 

  

	7.2	The Company will upon prior presentation of appropriate cost estimate documentation bear adequate relocation costs for the Managing Director’s and his immediate family
members’ move of residence to Reutlingen or its vicinity, provided the CEO of Xerium Technologies, Inc. has approved the relocation in advance. 

  

	7.3	Should the Company grant to the Managing Director any further benefits beyond those described in this Service Contract, these benefits shall be granted on a voluntary basis. The
Managing Director shall not acquire a legal claim to these benefits even if they are granted over a longer period of time and/or if they are repeatedly granted without the Company specifically reserving the right to claim the voluntariness on each
occasion of the benefits being granted. 

  

	8.	Travel Expenses 

  

	 	Travel expenses and other necessary expenses reasonably incurred by the Managing Director in the furtherance of the Company’s business shall be reimbursed to him, against
presentation of supporting documents and within the scope of the applicable German tax regulations. 

  

	9.	Company Car 

  

	9.1	The Company shall provide the Managing Director in accordance with the Xerium Fleet Automobile Program in force from time to time with a company car for business and private use.
The Company reserves the right to substitute the car by another company car equal in value at any time. 

  

 5 

	9.2	The financial value of the private use of the company car is considered additional compensation to the Managing Director, which will be subject to wage withholding tax to be borne
by the Managing Director. 

  

	9.3	The costs of maintenance, insurance, and use of the company car including, but not limited to car insurances taxes, comprehensive liability insurance (Vollkaskoversicherung),
petrol, etc. shall be borne by the Company, unless otherwise provided in the Xerium Fleet Automobile Program. 

  

	10.	Vacation 

  

	10.1	The Managing Director shall be entitled to an annual vacation of 25 working days. Vacation entitlement accrues pro rata month by month through the calendar year.

  

	10.2	The time of vacation shall be determined in agreement with the CEO of Xerium Technologies, Inc. and the other managing directors, if any, thereby taking into consideration the
business requirements of the Company and the personal wishes of the Managing Director. 

  

	10.3	Vacation not taken during the calendar year may only be carried forward to the next calendar year with the approval of the Company or if they could not be taken in the preceding
year due to the business of the Company requiring the presence of the Managing Director. Vacation that cannot be carried forward according to this rule lapses effective December 31. Vacation carried forward must be taken by March 31 of the
following calendar year or will lapse. 

  

	11.	Secrecy, Return of Items 

  

	11.1	The Managing Director shall not disclose to any third party, or use for personal gain, any confidential technical or other business information which has been entrusted to him, or
which has otherwise become known to the Managing Director and which relates to the Company or to any of its affiliated companies. In particular, no information may be disclosed concerning the organisation of the business, the relations with clients
and customers and the Company’s technical know-how. This obligation shall not expire upon termination of this Service Contract, but shall continue to remain in force thereafter. 

  

	11.2	Business records of any kind, including private notes concerning Company affairs and activities, shall be carefully kept and shall be used for business purposes only. No copies or
extracts or duplicates of drawings, calculations, statistics and the like nor of any other business records or documents may be made for purposes other than for the Company’s business. 

  

 6 

	11.3	Upon request of the Company, and in case of termination of this Contract without solicitation, the Managing Director shall return all items pertaining to the Company or any of its
affiliates at the location of its business offices to the attention of another managing director, if any, or of any other employee of the Xerium Group whom the CEO of Xerium Technologies, Inc. or an individual designated by the CEO of Xerium
Technologies, Inc. may determine. 

  

	12.	Granting of Proprietary Rights 

  

	12.1	The Managing Director hereby irrevocably assigns to the Company all exclusive rights to all copyrightable work products originating from or in connection with his performance of
duties and tasks within and during his service relationship with the Company. The Company may assign such rights and may publish the work products. The assignment of rights and exploitation of work products by the Company shall be deemed compensated
by the remuneration paid to the Managing Director. The Managing Director hereby waives his right to be named as an author of the work products and his right to publish the work products. The Managing Director may only make use of any other moral
rights, including the right of revocation and the right to prohibit alterations or distortions, as directed in writing by the Company. 

  

	12.2	In case the Managing Director creates other copyrightable work products he shall notify the Company if exploitation of such work products seems possible. The Company may acquire the
right to exploit such work products against payment of a reasonable compensation. If the Company is not interested in acquiring exploitation rights the Managing Director can freely dispose of the respective work products within the limitations of
the statutory obligation not to compete. 

  

	12.3	In all other respects, the statutory regulations regarding inventions, copyrights and ancillary rights shall apply. 

  

	13.	Term of Employment, Managing Director’s Right of Termination, Release 

  

	13.1	This Service Contract is concluded for an indefinite period of time. It shall, however, automatically end no later than the expiry of the month during which the Managing Director
attains the age of 65 years, or the month during which the Managing Director is entitled to receive full state old age pension without any deductions or pension for full reduction in earning capacity (ungeminderte
Erwerbsunfähigkeitsrente), whichever occurs first. 

  

 7 

	13.2	During its term this Contract may be terminated by either Party with a notice period of 12 (twelve) months effective to the end of any given calendar month.

  

	13.3	In case the Managing Director has been removed, or this Contract has been terminated by either Party, the Company is entitled to – revocably or irrevocably – unilaterally
release the Managing Director from his duty to work for the remaining term of this Service Contract, whilst continuing to pay his remuneration pursuant to Section 4.1 of this Service Contract and, only if this Contract has been terminated by
the Company, a pro-rated bonus pursuant to Section 5 of this Service Contract that would be payable to the Managing Director during the notice period insofar as such bonus is actually earned based on the performance of Xerium Technologies, Inc.
Other payments shall not be made during the period of release. 

  

	 	Any open vacation claims shall be deemed compensated by a period of irrevocable release. The open vacation shall be taken from the first day after the release on without
interruption. After the vacation, the provisions of section 615, second sentence, German Civil Code (“Bürgerliches Gesetzbuch – BGB”) shall apply. 

  

	 	The obligation to comply with the statutory duty not to compete effective during the term of this Service Contract remains unaffected during the period of release.

  

	13.4	Each party’s right to terminate this Service Contract in exceptional cases, in particular to give termination without notice pursuant to Section 626 of the German Civil
Code, remains unaffected. 

  

	13.5	Notice of termination must be given in writing. 

  

	14.	Obligation not to entice away Employees after Termination of the Employment Relationship 

  

	14.1	The Managing Director agrees that for a period of two years after the termination of this Service Contract that he shall neither directly nor indirectly entice away employees of the
Company, its subsidiaries, parent and other affiliated companies, or cause them in any other way to leave the Company, its subsidiaries or parent company, if for that purpose he induces them to break their contractual obligations or uses information
which is subject to the duty of secrecy according to Section 11 of this Service Contract. 

  

	14.2	Every time the Managing Director breaches the obligations described under Section 14.1 of this Service Contract, he shall pay a contractual penalty in

  

 8 

	 	the amount of one monthly base salary. In the case of a continuing violation of his obligation, a contractual penalty shall accrue for each additional month, which has begun.

  

	14.3	The Company’s right to further damages shall not be affected. 

  

	15.	Final Provisions 

  

	15.1	This Service Contract represents the entire agreement and understanding of the parties. All previous employment contracts or service contracts concluded with the Company or its
affiliates are cancelled explicitly and by consent of both parties effective to the commencing date of this Service Contract. 

  

	15.2	Any amendments or additions to this Service Contract, including this clause on written form, are only effective if made in written form. 

  

	15.3	If one of the provisions of this Service Contract is held to be invalid, the remaining provisions shall remain valid. The invalid provision shall be replaced by a valid one, which
is as close as possible to the economic effect of the invalid provision. The same shall apply in the event that the Service Contract is found to be incomplete. 

  

	15.4	In the event of disputes in connection with this Service Contract the place of jurisdiction shall be the corporate seat of the Company. 

  

	15.5	This Service Contract shall be governed and construed in accordance with the laws of the Federal Republic of Germany. 

  

			
	 The Company
 represented by:
 Xerium Technologies Ltd.,
 represented by:
 Thomas Gutierrez, Director
	 	 Managing Director

  

							
	 Place, Date:
	 	 Reutlingen, Germany, 26 July, 2006
	 	 Place, Date:
	 	 Reutlingen, Germany, 26 July, 2006

				
	 Signature:
	 	 /s/ Thomas Gutierrez
  
	 	 Signature:
	 	 /s/ Joan Badrinas Ardevol
  

  

 9

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