Document:

Exhibit 10.1

  

   

  

  
    
      	
              

            	
              

            

      RAVE Restaurant Group

      
        

    

    

    

    October 18, 2019

    

    

    Brandon L. Solano

    1206 Ashmoore Ct.

    Southlake, TX 76092

    

    

    Dear Brandon:

    

    

    Rave Restaurant Group, Inc. ("Rave Restaurant Group") is pleased to make you the following offer of employment for the salaried, exempt position of Chief Executive Officer.  This offer letter shall be the employment
      agreement (the "Agreement") governing the terms of your employment with the Rave Restaurant Group and its subsidiaries (collectively, the "Company") and shall become effective on the Starting Date indicated below and will continue indefinitely until
      terminated as described in the “Termination of Employment” and “Voluntary Resignation of Employment” paragraphs below.

    

    

    
      	
              Position:

            	
              Chief Executive Officer

            

    

    

    

    
      
        	Duties:	
                Such duties as the Board of Directors or Chairman of Rave Restaurant Group shall from time to time assign to you. At the Board's request, you shall serve Rave Restaurant Group and/or its subsidiaries and affiliates in other offices and
                  capacities in addition to the foregoing. In the event that you serve in any one or more of such additional capacities, your compensation shall not be increased beyond that specified below.

              

         

        

      

    

    Annual

    
      
        	Salary:	
                $350,000 annual base salary, paid according to the Company's standard pay practices, subject to applicable withholdings and employee benefit contributions. The Company currently issues payroll checks bi-monthly.

              

      

    

    

    

    Starting

    
      
        	Date:	
                October 21, 2019

              

      

    

    

    

    
      
        	Location:	
                Your primary work location shall be the Company's headquarters, which are currently in the Dallas-Fort Worth area.  Your job will also require frequent travel to other Company and Franchisee locations and other meeting sites.

              

      

    

    

    

    Exclusivity:

    During your employment with the Company, you agree (i) to devote substantially all of your business time, energy, skill and best efforts to the performance of your duties hereunder in a manner that will faithfully and
      diligently further the business and interests of the Company, and (ii) that you shall have no agreements with, or material obligations to, any other individual, partnership, corporation, or legal entity, specifically including any confidentiality,
      non-disclosure, non-solicitation, or non-competition agreements or obligations, that may or would conflict with your obligations under this Agreement.

     

    

    
      
        	
                Page 1 of 7

              	
                Initial______

              

      

      
        

      
        	
                

              	
                

              

        RAVE Restaurant Group

        
          

      

    

    Annual Incentive Compensation:

    In addition to your Base Annual Salary, you shall be eligible to earn bonus compensation up to 150% of your Base Annual Salary split equally between an annual short-term bonus opportunity paid in cash and an annual
      long-term bonus opportunity paid in Restricted Stock Units (“RSU”), granted pursuant to the company’s Long Term Incentive Plan (the “LTIP”).

    

    

    The Company's executive short-term cash bonus plan is based on the Company's financial performance and strategic goals relative to targets set by the Board of Directors. The amount of bonus earned each year is subject
      to the approval of the Board of Directors, which may use its discretion to interpret the Company's achievement of the bonus targets and take into consideration unusual, one-time, or forward-looking factors that affected the Company's historical
      results or may affect the Company's future prospects. The annual bonus targets generally shall be set such that you may earn bonus of up to 75% of your base annual salary upon achievement of certain financial and strategic objectives, as determined
      by the Compensation Committee of the Company. Bonuses are typically not paid until the Company's financial audit is complete, and executives must remain employed by the Company until the bonus payment date to receive a bonus.

    

    

    Long Term Incentive Compensation:

    As additional consideration for the duties and responsibilities to be performed, your annual long-term bonus opportunity will include participation in the Company’s Long Term Incentive Plan, which currently consists of
      Restricted Stock Unit awards with 3-year performance and time vesting criteria, as determined by the Company’s Compensation Committee each year.  You shall receive a first-year Restricted Stock Unit award with a grant date value equivalent to 75% of
      your base annual salary.  The terms and conditions associated with the RSUs are detailed in a separate Restricted Stock Unit Award Agreement.  You shall be eligible for additional LTIP awards following each full fiscal year that you are employed by
      the Company, subject to approval of the Compensation Committee.

    

    

    Termination of Employment:

    It is understood and agreed that should you accept this offer of employment you will be an employee-at-will and thus the Company may terminate your employment at any time for Cause or without Cause.

    

    

    Voluntary Resignation of Employment:

    You may voluntarily and without Good Reason resign your employment with the Company by notifying the Company, in writing, of your resignation decision.  Your resignation notice will become effective thirty (30) days
      following the receipt of the notice by the Company, provided however that the Company reserves the right, in its sole discretion, to accelerate your resignation date.  If the Company accelerates your resignation date, the date to which the
      resignation is accelerated shall be the effective date of your resignation.  On the effective date of your resignation, you shall be entitled to all accrued salary and benefits, but shall not be entitled to any other benefits, except as required by
      law.

    

    

    
      
        	
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                Initial______

              

      

      
        

      
        	
                

              	
                

              

        RAVE Restaurant Group

        
          

      

    

    Employee Benefits:

    During the Initial Term and any Extended Term while you are employed by the Company, you will be entitled to receive the same benefits as the Company makes generally available from time to time to the Company's senior
      executives, as those benefits may be modified, reduced or eliminated from time to time. Vacation, medical and dental insurance, 401(k), and other rights and benefit plans will be available to you as set forth in the Company's standard benefit package
      and Employee Handbook. Such rights, programs and benefit plans may be revised from time to time at the Company's sole discretion. Your eligibility for medical and dental benefits is effective on the first
      day of the month following 30 days of continuous employment.  The Company agrees to allow you four weeks of paid time off plus four "Extra Days" as described in the Company's Employee Handbook. With the
      exception of any contrary provision in this letter, or in any other document or agreement between you and the Company, the terms of your employment are at all times subject to the provisions of the Company's Employee
        Handbook, as said Handbook may be changed from time to time by the Company in its sole discretion.

    

    

    Non-Disclosure of Confidential Information:

    You acknowledge that in your employment with the Company, you will occupy a position of trust and confidence.  You agree that during your employment with the Company and at any time thereafter, except as may be
      required to perform your job duties for the benefit of the Company or as required by applicable law, you shall not disclose to others or use, whether directly or indirectly, any Confidential Information regarding the Company. "Confidential
      Information" shall mean any non-public or proprietary information regarding the Company, its business, restaurant concepts, franchisees, and customers, in whatever form, tangible or intangible, that is not disclosed publicly by the Company, including
      (without limitation) any proprietary knowledge, trade secrets, recipes, designs, products, inventions, business practices, programs, processes, techniques, know-how, management programs, methodology, financial information, pricing and fee
      information, agreements and arrangements with affiliates, employee files, personnel records, internal corporate records, corporate and business contacts and relationships, corporate and business opportunities, telephone logs and messages, client,
      consultant and customer lists and any and all other materials and information pertaining to the Company or its business to which you have been exposed or have access to as a consequence of your employment with the Company. You acknowledge that such
      Confidential Information is specialized, unique in nature and of great value to the Company, and that such information gives the Company a competitive advantage. You agree to deliver or return to the Company, at the Company's request at any time or
      upon termination of your employment all Confidential Information (and all copies thereof) furnished by the Company or prepared by you during your employment with the Company.

    

    

    
      
        	
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                Initial______

              

      

      
        

      
        	
                

              	
                

              

        RAVE Restaurant Group

        
          

      

    

    Nothing in this Agreement prohibits you from reporting an event that you reasonably and in good faith believe is a violation of law to the relevant law enforcement agency (such as the Securities and Exchange
      Commission, Equal Employment Opportunity Commission, or Department of Labor), or from cooperating in an investigation conducted by such a government agency.  You are hereby provided notice that under the federal Defend Trade Secrets Act (DTSA): (1)
      no individual will be held criminally or civilly liable under federal or state trade secret law for the disclosure of a trade secret (as defined in the Economic Espionage Act) that: (A) is made in confidence to a federal, state or local government
      official, either directly or indirectly, or to an attorney; and made solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such
      filing is made under seal so that it is not made public; and, (2) an individual who pursues a lawsuit for retaliation by an employer for reporting a suspected violation of the law may disclose the trade secret to the attorney of the individual and
      use the trade secret information in the court proceeding, provided the individual files under seal any document containing the trade secret, and does not disclose the trade secret, except as permitted by court order.

    

    

    Ownership of Rights:

    You acknowledge and confirm that the Company shall own, in perpetuity, throughout the universe, all right, title and interest in and to the results and proceeds of your services to the Company and all material produced
      and/or furnished by you, of any kind and nature whatsoever, it being understood and agreed that the Company hereby acquires the maximum rights permitted to be obtained by the Company in all proprietary rights and information. Any such materials
      and/or ideas submitted to the Company hereunder automatically shall become the property of Company, and you hereby transfer and agree to transfer and assign to Company all of said rights and materials (including, without limitation, all copyrights
      and similar protections, renewals and extensions of copyright, and any and all causes of action that may have accrued in your favor for infringement of copyright), it being understood that you, for purposes of your employment with the Company, are
      acting entirely as Company's executive for hire. You agree that you will, at Company's request, execute and deliver to Company or procure the execution and delivery to Company of such documents or other instruments which Company may from time to time
      deem reasonably necessary or desirable to evidence, maintain and protect its rights hereunder and to carry out the intent and purposes of this Agreement and to convey to Company all rights in and to the material supplied to Company by you in this
      Agreement.

    

    

    Non-Competition:

    As consideration for the employment terms and LTIP award provided by the Company, you agree that at any time during your employment and for a period of twelve (12) months after the end of your employment with the
      Company, regardless of the payment of any severance or other consideration to you following the cessation of your employment with the Company, you shall not, within the United States or any foreign country where the Company has franchisees or other
      operations, either alone or jointly, with or on behalf of others, directly or indirectly, whether as principal, partner, agent, shareholder, director, employee, consultant or otherwise, provide consultative services or otherwise provide services to,
      own, manage, operate, join, develop, control, participate in, or be connected with, any business, individual, partner, firm, corporation, or other entity that is engaged in a Competing Concept that is not owned by the Company; provided, however, that
      the "beneficial ownership" by Executive, either individually or as a member of a "group," as such terms are used in Rule 13d of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), of not more
      than five percent (5%) of the voting stock of any publicly traded corporation shall not alone constitute a violation of this Agreement. A "Competing Concept" means any restaurant business or restaurant concept that derives more than 30% of its gross
      sales from the sale of pizza or pizza-like (i.e. flatbreads, etc.) food offerings.

    

    

    
      
        	
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                Initial______

              

      

      
        

      
        	
                

              	
                

              

        RAVE Restaurant Group

        
          

      

    

    Non-Solicitation:

    As consideration for the employment terms and LTIP award provided by the Company, you agree that you shall not, either alone or jointly, with or on behalf of others, directly or indirectly, whether as principal,
      partner, agent, shareholder, director, employee, consultant or otherwise, at any time during your employment and for a period of eighteen (18) months after the end of your employment with the Company, regardless of the payment of any severance or
      other consideration to you following the cessation of your employment  with the Company, (a) directly or indirectly hire or solicit the employment or engagement of, or otherwise aid in the inducement or enticement away from the employment or
      engagement  of the Company or any affiliated entity, either for your own benefit or for any other person or entity,  any employee or consultant who was employed or engaged by the Company or any such affiliated entity during the term of your
      employment, whether or not such employee or consultant would commit any breach of his/her contract of employment or consulting arrangement by reason of his/her leaving the service of the Company or any affiliated entity; or (b) directly or indirectly
      solicit, induce or entice any client, franchisee, supplier, customer, contractor, licensor, agent, partner or other business relationship of the Company (including any such types of parties of which the Company is or was actively pursuing a business
      relationship that had not yet been consummated as of your termination date) to terminate, discontinue, renegotiate or otherwise cease or modify its or their relationship with the Company or any affiliated entity.

    

    

    Acknowledgement:

    You expressly acknowledge and agree that the restrictions contained in this Agreement (exclusivity, non-disclosure, non-competition and non-solicitation) are reasonably tailored to protect the Company's Confidential
      Information and its business and are reasonable in all circumstances in scope, duration and all other respects. It is expressly agreed by the parties that if for any reason whatsoever, any one or more of the restrictions in this Agreement shall
      (either taken by itself or themselves together) be adjudged to go beyond what is reasonable in all circumstances for the protection of the legitimate interests of the Company, the parties agree that the prohibitions shall be in effect and upheld to
      the fullest extent permissible under applicable laws.

    

    

    Acceptance:

    This offer is effective immediately and may be accepted by your signing and dating a copy of this document and returning it to me on or before close of business on October 18, 2019. If accepted and executed, this offer
      shall be deemed to be a binding definitive agreement in full force and effect. If not so accepted by that time, this offer will be deemed withdrawn and will be no further in force or effect. Any representations that may have been made to you
      concerning the terms or conditions of employment, whether orally or in writing, are cancelled and superseded by this letter. Any modifications to the terms of your employment must be confirmed to you in writing to be valid and enforceable and your
      election to continue in the Company's employ after such confirmation will be deemed to be your agreement to such modifications. You will also be asked to bring to your first day of work personal identification documents in order to complete your
      employment eligibility paperwork as required by Federal law.  Furthermore, in the Company's discretion, the effectiveness of this offer may be conditioned on your consent to and the Company's receipt of a background check of you to be performed by an
      agent of the Company, the results of which are reasonably satisfactory to the Company.

    

    

    
      
        	
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                Initial______

              

      

      
        

      
        	
                

              	
                

              

        RAVE Restaurant Group

        
          

      

    

    Governing Law:

    Your principal work location will be in Texas with travel as required to perform the duties of your job. This Agreement will be governed by and construed in accordance with the laws of the State of Texas applicable to
      contracts made and performed in such State without giving effect to the choice of law principles of such State that would require or permit the application of the laws of another jurisdiction.

    

    

    Successors:

    This Agreement is personal to you and shall not be assignable by you. This Agreement shall inure to the benefit of and be binding upon the Company and its affiliated companies, successors and assigns.

    

    

    Severability:

    If a provision of this Agreement shall be held illegal or invalid, the illegality or invalidity shall not affect the remaining parts of this Agreement and this Agreement shall be construed and enforced as if the
      illegal or invalid provision had never comprised a part of this Agreement.

    

    

    Construction:

    No term or provision of this Agreement shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision of this Agreement and any present or future
      statue, law, ordinance, or regulation contrary to which the parties have no legal right to contract, the latter shall prevail , but in such event the affected provision of this agreement shall be curtailed and limited only to the extent necessary to
      bring the provision within the requirements of the law.

    

    

    
      
        	
                Page 6 of 7

              	
                Initial______

              

      

      
        

      
        	
                

              	
                

              

        RAVE Restaurant Group

        
          

      

    

    We appreciate your interest in this opportunity at the Company and we look forward to a mutually rewarding relationship.

    

    

    Agreed and Accepted:

    

    

    Employer: Rave Restaurant Group, Inc.

    

    

    	
            By:

          	 	 
	 	
            Mark E. Schwarz, Chairman

          	 

    

    

    	
            Employee:

          	 	 
	 	
            Brandon L. Solano

          	 

    

    

    	
            Date:

          	 	 

    

    

    

    

    
      	
              Page 7 of 7

            	
              Initial______EX-10.1

 Exhibit 10.1 

Execution Copy 

SEPARATION AND TRANSITION AGREEMENT 

This Separation Agreement (the “Agreement”), by and between Gulf Island Fabrication, Inc., a Louisiana corporation (the
“Company” and, together with its affiliates and subsidiaries, the “Company Group”), and Kirk J. Meche (the “Executive” and, together with the Company, the “Parties”) is effective
October 18, 2019 (the “Effective Date”). 
 RECITALS 

WHEREAS, the Executive currently serves the Company as its President and Chief Executive Officer; 

WHEREAS, the Parties have agreed that the Executive will retire on December 31, 2019, or such earlier date as may occur pursuant to
Section 1(c) (the “Separation Date”); and 
 WHEREAS, the Parties desire to enter into a mutually satisfactory
arrangement concerning, among other matters, the orderly transition of the Executive’s duties and the status of certain preexisting agreements between the Parties and certain payments, rights, and benefits that the Company has agreed to make or
confer upon the Executive in exchange for certain post-employment covenants by the Executive and the Executive’s general release of claims against the Company Group and related parties. 

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are mutually acknowledged, the Parties hereby agree as follows: 
 1. Employment Period. 

(a) Employment and Duties. During the period between the Effective Date and the Separation Date (the “Employment
Period”), the Executive agrees to continue to serve as an employee with the title of President and Chief Executive Officer of the Company, with the same duties and authority as this position warrants. The Executive agrees that, during the
Employment Period, he will devote such time as is reasonably necessary to effectively assist Company with regard to these matters. 
 (b)
Compensation. During the period between the Effective Date and December 31, 2019, the Executive’s salary and benefits, including without limitation, Executive’s monthly car allowance, shall remain unchanged. In particular,
during such period, the Executive shall continue to receive the same base salary that was in effect for him on the Effective Date. 
 (c)
Company’s Right to Terminate. The Company shall have the right at any time before the Separation Date to notify the Executive that his continued services are no longer required, subject to the Company’s obligation to make the
payments and provide the benefits set forth in this Agreement. If the Company exercises its right under this Section 1(c) to terminate the Executive’s services prior to December 31, 2019, then the “Separation Date” shall
mean the actual date on which the Company terminates the Executive’s services. 

  
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 (d) Board Membership. On the Effective Date, the Parties agree that Executive shall
resign as a member of the Board of Directors of the Company (the “Board”) and shall cease serving in any other capacity with the Company Group as of the Separation Date. 

(e) Continued Compliance with Company Policies. The Executive agrees that, during the Employment Period, he will continue to comply with
all company policies to the extent relevant to his activities, including but not limited to: (i) the Code of Ethics for CEO and Senior Financial Officers, (ii) the Code of Business Conduct and Ethics, and (iii) the Policy on Insider
Trading, which prohibits, among other things, trading in the Company’s securities while in possession of material nonpublic information. 
 2.
Compensation and Benefits following the Employment Period. 
 (a) Accrued Obligations. As soon as practicable following the
Separation Date (but in no event later than such date required by applicable law or the terms of the applicable Company benefit plan), regardless of whether this Agreement becomes effective, the Executive will be paid or provided (i) all
accrued but unpaid base salary and vacation pay and any reimbursable-but-unreimbursed business expenses through and including the Separation Date; and (ii) all
other benefits payable to the Executive upon a separation from service under the Company’s benefit plans, in accordance with the terms of such plans, or as required by applicable law. 

(b) Annual Incentive Plan. Provided the Executive remains employed with the Company through the Separation Date, the Executive shall
remain eligible to receive an annual cash incentive for fiscal 2019 under the Company’s annual incentive plan (the “AIP”), which shall be calculated in accordance with the terms and conditions of the AIP based on achievement of
the applicable performance metrics. Any payout under the AIP due to the Executive shall be paid to him in 2020 at the same time any such incentives are paid to officers of the Company under the plan and shall not be subject to pro ration if the
Separation Date occurs prior to December 31, 2019. 
 (c) Impact of Separation on Outstanding Long-Term Incentive Awards. The
Parties agree and acknowledge that as of the Effective Date, the Executive holds (i) 82,689 unvested time-based restricted stock units (the “RSUs”) that were granted to him under the Company’s stock incentive plans, which RSUs
will be forfeited as of the Separation Date, and (ii) outstanding performance awards granted during 2017, 2018 and 2019, a pro rata portion of which will remain outstanding following the Separation Date and will pay out following the end of
each applicable performance period based on the level of achievement of the applicable metrics, at the times and as otherwise set forth in the performance award agreements. 

(d) Severance Payment. Notwithstanding anything to the contrary contained in this Agreement, provided that the Executive remains
employed with the Company through the Separation Date and in consideration for, and subject to, his (1) timely execution and non-revocation of the Release (as defined in Section 3) and
(2) continued compliance with the terms of this Agreement following the Effective Date, including but not limited to the restrictive covenants in Section 4, the Executive shall be eligible to receive severance payments in the aggregate
amount of $958,000 (the “Severance Payment”), payable as follows and subject to the conditions set forth in Section 3: 

  
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 (i) $468,000 to be paid in a lump sum on the Payment Date (as defined in Section 3);
and 
 (ii) the remaining $490,000 to be paid in equal installments as salary continuation payments over a
12-month period commencing on the Payment Date. 
 (e) No Further Benefits. The Executive
hereby acknowledges and agrees that, as of the Separation Date, the payments and benefits described in this Section 2 will be in full discharge of any and all liabilities and obligations of the Company Group to him, monetarily or with respect
to employee benefits or otherwise, including but not limited to any and all obligations arising under any written or oral employment agreement, policy, plan, or procedure of the Company Group or any understanding or arrangement between the Executive
and the Company Group. 
 (f) Taxes. The payments referenced in this Section 2 shall be subject to reduction for applicable tax
and other withholding obligations. 
 3. Release Condition. Payment of the Severance Payment shall commence on the Company’s first regularly
scheduled pay date that is on or after the date that the Release (as defined below) becomes effective, which by the terms of this Agreement will be prior to March 15, 2020 (the “Payment Date”), but only if the Executive
(a) executes and delivers to the Company on or before the Release Expiration Date (as defined below) a release of all claims in a form provided by the Company (the “Release”), and (b) does not revoke the Release during the
applicable revocation period. As used herein, the “Release Expiration Date” is that date that is twenty-one (21) days following the date upon which the Company delivers the Release to the
Executive (which shall occur no later than five (5) days after the Separation Date). The first installment payment shall include all amounts that would otherwise have been paid to the Executive during the period beginning on the Separation Date
and ending on the Payment Date if no delay had been imposed. 
 4. Restrictive Covenants. 

(a) For purposes of Section 4, the following terms shall have the following meanings: 

(i) “Business” shall mean the business and operations that are the same as those performed by the Company and
its affiliates, and any successors thereto, for which the Executive provides or provided services or about which the Executive obtains or has obtained Confidential Information during his Employment, which business and operations are defined as the
fabrication, maintenance and servicing of structures, modules and marine vessels used in energy extraction, production, petrochemical and industrial facilities, power generation, alternative energy and shipping and marine transportation operations.

 (ii) “Business Opportunity” shall mean any commercial, investment or other business opportunity relating
to the Business of which the Executive was aware during his employment with the Company or about which the Executive received Confidential Information. 

  
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 (iii) “Company” as used in this Section 4 shall
include the Company and its subsidiaries and any successors thereto. 
 (iv) “Confidential Information”
means information that is not generally known to the public (but for purposes of clarity, Confidential Information shall never exclude any such information that becomes known to the public because of the Executive’s unauthorized disclosure) and
that is used, developed or obtained by the Company in connection with its business, including, but not limited to, information, observations and data obtained by the Executive while employed by the Company concerning (A) the business or affairs
of the Company, (B) products or services, (C) fees, costs and pricing structures, (D) designs, (E) analyses, (F) drawings, photographs and reports, (G) computer software, including operating systems, applications and
program listings, (H) flow charts, manuals and documentation, (I) databases, (J) accounting and business methods, (K) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or
not reduced to practice, (L) customers and clients and customer or client lists, (M) other copyrightable works, (N) all production methods, processes, technology and trade secrets, and (O) all similar and related information in
whatever form. Confidential Information will not include any information that has been published in a form generally available to the public (except as a result of the Executive’s unauthorized disclosure) prior to the date the Executive
proposes to disclose or use such information. Confidential Information will not be deemed to have been published or otherwise disclosed merely because individual portions of the information have been separately published, but only if all material
features comprising such information have been published in combination. 
 (v) “Market Area” shall mean
states of Texas and Louisiana, the Gulf of Mexico Outer Continental Shelf, and any additional areas in which the Company had operations or created plans to expand its operations. The Market Area includes, but is not limited to, (i) the
following counties and in the state of Texas: Aransas, Chambers, Fort Bend, Harris, Montgomery, Nueces and San Patricio; and (ii) the following parishes in the state of Louisiana: Calcasieu, East Baton Rouge, Iberia, Jefferson, Jefferson Davis,
Lafayette, Lafourche, Orleans, St. Mary, Terrebonne and Vermillion 
 (vi)
“Non-Compete Period” shall mean the Effective Date to the first anniversary of the Separation Date. 

(vii) “Non-Solicit Period” shall mean the Effective Date to the first
anniversary of the Separation Date. 
 (viii) “Work Product” means all inventions, innovations,
improvements, technical information, systems, software developments, methods, designs, analyses, drawings, reports, service marks, trademarks, trade names, logos and all similar or related information (whether patentable or unpatentable) that
relates to the Company’s actual or anticipated Business, research and development or existing or future products or services 

  
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and that are conceived, developed or made by the Executive (whether or not during usual business hours and whether or not alone or in conjunction with any other person) while employed by the
Company together with all patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing. 

(b) Generally. The Company has provided the Executive access to Confidential Information for use during his employment, and the
Executive acknowledges and agrees that the Company entrusted the Executive, in the Executive’s unique and special capacity, with developing the goodwill of the Company, and in consideration of the Company providing the Executive with access to
Confidential Information and the consideration detailed in this Agreement, the Executive voluntarily agrees to the covenants set forth in this Section 4. The Executive further agrees and acknowledges that the limitations and restrictions set
forth herein, including geographical and temporal restrictions on certain competitive activities, are reasonable in all respects and not oppressive, shall not cause the Executive undue hardship, and are material and substantial parts of this
Agreement intended and necessary to prevent unfair competition and to protect the Company’s Confidential Information, goodwill and substantial and legitimate business interests. 

(c) Non-Competition. The Executive agrees that, during the
Non-Compete Period, the Executive shall not, without the prior written approval of the Chairman of the Board, directly or indirectly, for the Executive or on behalf of or in conjunction with any other person
or entity of any nature: 
 (i) engage in or participate in competition with any member of the Company in any aspect of the
Business within the Market Area, which prohibition shall prevent the Executive from directly or indirectly owning, managing, operating, joining, becoming an officer, director, employee or consultant of, or loaning money to, or selling or leasing
equipment or real estate to or otherwise being affiliated with any person or entity engaged in, or planning to engage in, the Business in the Market Area in competition, or anticipated competition, with any member of the Company (which, for this
purpose, includes any company that directly competes with the Company as of the date hereof or in the future); or 
 (ii)
appropriate any Business Opportunity of, or relating to, the Company located in the Market Area. 
 (d)
Non-Solicitation. The Executive agrees that, during the Non-Solicit Period, the Executive shall not, without the prior written approval of the Board, directly or
indirectly, for the Executive or on behalf of or in conjunction with any other person or entity: 
 (i) solicit, canvass,
approach, encourage, entice or induce in the Market Area any known customer or supplier of any member of the Company to cease or lessen such customer’s or supplier’s business with the Company; or 

  
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 (ii) solicit, canvass, approach, encourage, entice or induce any employee or
contractor of the Company to terminate his, her or its employment or engagement with any member of the Company. 
 (e) Non-Disclosure; Non-Use of Confidential Information. The Executive shall not disclose or use at any time any Confidential Information of which the Executive became aware,
regardless of whether or not such information was developed by the Executive. The Executive will take all appropriate steps to safeguard Confidential Information that may remain within the Executive’s knowledge and to protect it against
disclosure, misuse, espionage, loss and theft. The Executive shall deliver to the Company at the Separation Date all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data (and copies thereof) relating to
the Confidential Information or the “Work Product” of the business of the Company that the Executive may then possess or have under the Executive’s control. Nothing in this Agreement or any other agreement or policy of the Company is
intended to interfere with or restrain the immunity provided under 18 U.S.C. §1833(b). The Executive cannot be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made
(x) (A) in confidence to federal, state or local government officials, directly or indirectly, or to an attorney, and (B) for the purpose of reporting or investigating a suspected violation of law; (y) in a complaint or other document
filed in a lawsuit or other proceeding, if filed under seal; or (z) in connection with a lawsuit alleging retaliation for reporting a suspected violation of law, if filed under seal and does not disclose the trade secret, except pursuant to a
court order. The foregoing provisions regarding protected disclosures are intended to comply with all applicable laws. If any laws are adopted, amended or repealed after the execution of this Agreement, this Agreement shall be deemed to be amended
to reflect the same. 
 (f) Proprietary Rights. The Executive recognizes that the Company possesses a proprietary interest in all
Confidential Information and Work Product and has the exclusive right and privilege to use, protect by copyright, patent or trademark, or otherwise exploit the processes, ideas and concepts described therein to the exclusion of the Executive, except
as otherwise agreed between the Company and the Executive in writing. The Executive expressly agrees that any Work Product made or developed by the Executive or the Executive’s agents during the course of the Executive’s employment,
including any Work Product which is based on or arises out of Work Product, shall be the property of and inure to the exclusive benefit of the Company. The Executive further agrees that all Work Product developed by the Executive (whether or not
able to be protected by copyright, patent or trademark) during the course of the Executive’s employment with the Company, or involving the use of the time, materials or other resources of the Company, has been promptly disclosed to the Company
and is the exclusive property of the Company, and the Executive shall execute and deliver any and all documents necessary or appropriate to implement the foregoing. 

(g) Non-Disparagement. Neither the Executive nor the Executive’s agents shall directly or
indirectly issue or communicate any public statement, or statement likely to become public, that maligns, denigrates or disparages the Company (including, in the case of communications by the Executive or the Executive’s agents, the Company,
any of the Company’s officers, directors or employees). The foregoing shall not be violated by truthful responses to legal process or governmental inquiry. 

  
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 (h) Enforcement. Because of the difficulty of measuring economic losses to the
Company as a result of a breach of the covenants set forth in this Section 4 and because of the immediate and irreparable damage that would be caused to the members of the Company for which they would have no other adequate remedy, the Company
and each other member of the Company shall be entitled to enforce the foregoing covenants, in the event of a breach as determined by a court of law, by (i) ceasing any further consideration payments contemplated in this Agreement and/or
(ii) obtaining injunctions and restraining orders from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any
bond or other security. The aforementioned equitable relief shall not be the Company’s or any other member of the Company’s exclusive remedy for a breach but instead shall be in addition to all other rights and remedies available to the
Company and each other member of the Company at law and equity. 
 (i) Blue Pencil. If, at any time, the provisions of this
Section 4 shall be determined to be invalid or unenforceable under any applicable law, by reason of being vague or unreasonable as to area, duration or scope of activity, this Agreement shall be considered divisible and shall become and be
immediately amended to only such area, duration and scope of activity as shall be determined to be reasonable and enforceable by the court or other body having jurisdiction over the matter and the Executive and the Company agree that this Agreement
as so amended shall be valid and binding as though any invalid or unenforceable provision had not been included herein. 
 (j)
Tolling. The periods during which the covenants set forth in this Section 4 shall survive shall be tolled during (and shall be deemed automatically extended by) any period during which the Executive is found by a judge residing in a
court of competent jurisdiction to be in violation of any such covenants, to the extent permitted by applicable law. 
 5. Assistance with Claims. The
Executive agrees that after the Separation Date he will assist the Company Group in the defense of any claims, or potential claims that may be made or threatened to be made against them in any legal, arbitration or governmental proceeding or
investigation (a “Proceeding”), and will assist the Company Group in the prosecution of any claims that have been or may be made by the Company Group in any Proceeding. The Company shall reimburse the Executive for all reasonable out-of-pocket expenses associated with such assistance, including travel expenses and any attorneys’ fees, and shall pay a per diem fee of $1,500 per day with respect to
any day the Executive is required to provide services related to a Proceeding in excess of 2 hours. 
 6. Successors and Assigns. The parties
acknowledge and agree that this Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, legal representatives, successors, and permitted assigns. 

7. Severability. If any provision of this Agreement is held by any court of competent jurisdiction to be illegal, void, or unenforceable, such provision
will be of no force or effect. The illegality or unenforceability of such provision, however, will have no effect upon and will not impair the enforceability of any other provision of this Agreement. 

  
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 8. Notices. All notices under this Agreement must be in writing and will be deemed to have been given
upon receipt of delivery by: (a) hand (against a receipt for such delivery), (b) certified or registered mail, postage prepaid, return receipt requested, (c) a nationally recognized overnight courier service (against a receipt for such
service), or (d) facsimile transmission with confirmation of receipt. All notices to the Company related to this Agreement should be sent to the Company’s principal executive offices as disclosed in its filings with the Securities and
Exchange Commission, addressed to the Chairman of the Board. All notices to the Executive should be delivered to the most recent address as provided by the Executive to the human resources department of the Company. Either Party may update its
address for receipt of notices by providing written notice to the other Party as provided under this Section 8. 
 9. Entire Agreement. Except
for the references to other agreements and plans set forth in this Agreement, including Section 2, and as set forth in the next sentence, this Agreement constitutes the entire understanding and agreement between the Executive and the Company
regarding the Executive’s separation from service and supersedes all prior negotiations, discussions, correspondence, communications, understandings, and agreements between the Executive and any member of the Company Group and all benefit plans
of the Company Group relating to the subject matter of this Agreement. Notwithstanding the above, to the extent a Change of Control (as defined in that certain Change of Control Agreement between the Executive and the Company dated March 1,
2018 (the “COC Agreement”)) occurs prior to the Separation Date, the COC Agreement will govern instead of this Agreement and the Executive will be entitled to the payments and benefits provided under the COC Agreement in lieu of any
payments and benefits under this Agreement. Any changes or amendments of this Agreement can be made only in a writing signed by the Parties. 
 10.
Governing Law Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, interpreted, and enforced in accordance with the laws of the State of Texas (without regard to any choice of law principles which might otherwise require
the application of the law of another jurisdiction). The parties hereby agree that any action brought with respect to this Agreement and the transactions contemplated hereunder, including, but not limited, to any action for injunctive relief for the
breach or threatened breach of any covenant under Section 4 of this Agreement (including the restrictive covenants), shall be brought in state or federal court in Harris County, Texas, and further that such venue shall be the exclusive venue
for resolving any such disputes. The parties consent to personal jurisdiction in state or federal court in Harris County, Texas, and further waive any objection they may have as to such venue. By execution of this Agreement, the parties are waiving
any right to trial by jury in connection with any suit, action, or proceeding under or in connection with this Agreement. 
 11. Section 409A of the
Code. The payments provided pursuant to this Agreement are intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), including the short-term deferral and
separation pay exceptions thereto, and this Agreement shall be construed and administered in accordance with such intent. Provided these exceptions to Section 409A apply as expected, neither the Company nor its affiliates will report any
amounts payable in accordance with the terms of this Agreement or any plan or agreement referenced herein in box 12 of IRS Form W-2 using code Z. Notwithstanding any other provision of this Agreement, payments
provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any 

  
 8 

 
payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from
Section 409A to the maximum extent possible. For purposes of Section 409A, any installment payments provided under this Agreement shall each be treated as a separate payment. To the extent required under Section 409A, any payments to
be made under this Agreement in connection with a termination of employment shall only be made if such termination constitutes a “separation from service” under Section 409A. If and to the extent that any payment under this Agreement
is determined by the Company (1) to constitute “non-qualified deferred compensation” subject to Section 409A and (2) such payment must be delayed for six months from the Separation
Date (or an earlier date) in order to comply with Section 409A(a)(2)(B)(i) in order to prevent the imposition of any additional tax on the Executive under Section 409A, then the Company will delay making any such payment until the
expiration of such six-month period (or, if earlier, Executive’s death). Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement
comply with Section 409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest, or other expenses that may be incurred by you on account of non-compliance
with Section 409A. 
 12. Counterparts. This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but
all of which taken together shall constitute one and the same instrument. 

  
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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. 

 

	
	GULF ISLAND FABRICATION, INC.
	
	 /s/ John P. (“Jack”) Laborde

	By: John P. (“Jack”) Laborde
	Title: Chairman of the Board of Directors
	
	EXECUTIVE
	
	 /s/ Kirk J. Meche

	Kirk J. Meche

 [Signature Page to Separation and Transition Agreement]

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