Document:

<PAGE>

                            VESSEL PURCHASE AGREEMENT

            THIS VESSEL PURCHASE AGREEMENT (this "Agreement") is entered into as
      of May 5, 2005 (the "Effective Date"), by and between General Electric
      Capital Corporation, a corporation organized under the laws of Delaware
      (the "Buyer"), and Torch Offshore, Inc., a Delaware corporation ("Torch
      Offshore"), Torch Offshore, LLC, a Delaware limited liability company
      ("Torch, LLC" and, jointly with Torch Offshore, the "Seller"), and Torch
      Express, LLC ("Torch Express") a Louisiana limited liability company.

                                    RECITALS

            WHEREAS, Seller and Seller's affiliate, Torch Express (Torch
      Express, together with Seller, "Debtors") are indebted to Buyer in the
      amount of not less than $21,835,595.75 as of January 7, 2005 plus
      attorneys' fees and related expenses (the "Debt"), which indebtedness is
      represented by (i) that certain promissory note executed by Torch, LLC,
      dated March 21, 2003 in the principal amount of $9,250,000.00, and
      guaranteed by Torch Offshore and Torch Express, the payment of which is
      secured by, among other things, that certain first preferred ship mortgage
      in the principal amount of $9,250,000.00 executed by Torch, LLC, dated
      March 21, 2003, on the vessel M/V Midnight Eagle, recorded with the U.S.
      Coast Guard National Vessel Documentation Center ("NVDC") in Book 03-61,
      page 292, and by that certain preferred fleet mortgage dated December 17,
      2003 in the principal amount of $9,250,000.00 on the vessel M/V Midnight
      Gator recorded with the NVDC on December 18, 2003 in Batch Number 181843,
      Document ID No. 1598179, and by that certain financing statement recorded
      with the Delaware Secretary of State at file number 3075660, all as more
      fully set forth in the loan and security documentation pertaining thereto,
      and (ii) that certain promissory note executed by Seller and Torch
      Express, dated December 17, 2003 in the principal amount of $15,000,000,
      the payment of which is secured by that certain first preferred ship
      mortgage in the principal amount of $24,250,000.00 executed by Torch
      Offshore, dated December 17, 2003, on the vessel M/V Midnight Wrangler,
      recorded with the Vanuatu Maritime Authority on December 19, 2003 and
      recorded at Book PM 24, page 86, and by a first preferred fleet mortgage
      in the original principal amount of $15,000,000.00 executed by Torch, LLC,
      dated December 17, 2003, on the vessels M/V Midnight Eagle and M/V
      Midnight Gator, recorded with the NVDC on December 18, 2003 in Batch
      Number 181834, Document ID No. 1598161, and by those certain financing
      statements recorded with the Delaware Secretary of State at file numbers
      33335240 and 33335661, all as more fully set forth in the loan and
      security documentation pertaining thereto (collectively, all of the
      foregoing are the "GE Capital Security Interests";

            WHEREAS, certain of Buyer's collateral, the M/V Midnight Eagle and
      M/V Midnight Wrangler, has been seized in an attempt by Buyer to cause the
      satisfaction of Debtors' obligations to Buyer;

            WHEREAS, on January 7, 2005 (the "Petition Date"), each of the
      Debtors' petitioned for relief under chapter 11 of title 11 of the United
      States Code; and

<PAGE>

            WHEREAS, Debtors have reached an arrangement whereby Seller will
      sell to Buyer and Buyer will purchase from Seller all of Buyer's
      collateral, subject to acquisition by a higher bidder at an auction
      conducted in Debtors' bankruptcy case.

            NOW, THEREFORE, in consideration of the mutual covenants and
      agreements herein contained, and of other valuable consideration, the
      receipt of which is hereby acknowledged, the Parties hereby agree as
      follows:

                                    ARTICLE I
                                   DEFINITIONS

            The following terms employed in this Agreement have the meanings set
      forth as follows:

            "Agreement" has the meaning set forth in the Preamble.

            "Allowed Custodia Legis Expenses" means all allowed custodia legis
      expenses directly related to the preservation of a Vessel from and after
      the commencement of the Bankruptcy Cases, as determined by the Bankruptcy
      Court.

            "Allowed Secured Claims" means any Lien on a Vessel superior in rank
      to the GE Capital Security Interests, as determined by the Bankruptcy
      Court in a final non-appealable order.

            "Approval Order" means an order of the Bankruptcy Court, in form and
      substance reasonably acceptable to the Buyer in all material respects,
      approving the Transaction and all of the terms and conditions contemplated
      hereby, which order (i) shall be in full force and effect and (ii) shall
      not have been stayed, reversed, modified or amended in any respect and, if
      the Approval Order is the subject of a pending appeal, the consummation of
      the Transaction shall not be the subject of a presently effective stay
      pending appeal.

            "Auction" means the Bankruptcy Court auction for the Sale Assets to
      be held in accordance with the Bidding Procedures Order.

            "Bankruptcy Case" means Seller's chapter 11 cases currently pending
      before the Bankruptcy Court.

            "Bankruptcy Code" means title 11 of the United States Code, as
      heretofore and hereafter amended, and codified as 11 U.S.C. sections 101,
      et seq.

            "Bankruptcy Court" means the United States Bankruptcy Court for the
      Eastern District of Louisiana and any other court having jurisdiction over
      the Bankruptcy Case.

            "Bidding Procedures" means bidding procedures established by the
      Bankruptcy Court and set forth in the Bidding Procedures Order.

            "Bidding Procedures Hearing" means the hearing to be scheduled and
      conducted by the Bankruptcy Court to consider approval of the Bidding
      Procedures.

                                       2
<PAGE>

            "Bidding Procedures Order" means an order of the Bankruptcy Court in
      the form of Exhibit "A" annexed here to or as otherwise agreed by Buyer,
      establishing the Bidding Procedures.

            "Business Days" are days on which banks are open in the place of
      Closing provided in Section 2.2.

            "Buyer" has the meaning set forth in the Preamble.

            "Buyer's Authorized Representative" has the meaning set forth in
      Section 10.5.

            "Claimants" has the meaning set forth in Section 6.5.

            "Closing" has the meaning set forth in Section 2.2.

            "Closing Date" has the meaning set forth in Section 2.2.

            "Competing Bidder" has the meaning set forth in Section 3.2(a).

            "Debt" has the meaning set forth in the Recitals.

            "Debtors" has the meaning set forth in the Recitals.

            "Effective Date" has the meaning set forth in the Preamble.

            "Equipment" means with respect to any vessel (i) said Vessel's
      machinery, engines, lay installation equipment, tower, reels, cranes,
      tensioners, spares, consumables, motors, generators, riggings,
      attachments, accessories, fixtures, replacement parts and other
      appurtenances and equipment associated therewith, whether on board or
      ashore; (ii) all surveys, inspection records, safety logs and maintenance
      and navigation records relating to the Vessel; and (iii) all owner's and
      operator's manuals related to, or used or usable by the Vessel. Without
      limitation of the foregoing, the meaning of term "Equipment" shall
      include, (a) in the case of the MV Midnight Wrangler, the four (4) reels
      and the modular lay system, including all components thereof, as further
      described in Exhibit C hereto, (b) in the case of the M/V Midnight Eagle,
      the American Crane, Model 5299 and the Gallion hydraulic pedestal crane as
      further described in Exhibit C hereto to the extent deemed encumbered by
      the GE Capital Security Interests, and (c) in the case of the M/V Midnight
      Gator, the two (2) Caterpillar Model 3512-D1 (S/N 50Y00958 and S/N
      50Y00962) engines driving skid mounted jet pumps as described in Exhibit C
      hereto.

            "GE Capital Security Interests" shall have the meaning set forth in
      the Recitals.

            "Governmental Approval" means any authorization, consent, approval,
      license, franchise, ruling, permit, tariff, rate, certification,
      exemption, filing or registration by or with any Governmental Authority
      relating to the ownership of the Sale Assets or to the execution, delivery
      or performance of this Agreement.

                                       3
<PAGE>

            "Governmental Authority" means any national government, any state or
      other political subdivision thereof, and any entity exercising executive,
      legislative, judicial, regulatory or administrative functions of or
      pertaining to government and any other governmental entity with authority
      over the Buyer or Seller or the operation of the Vessels.

            "Law" means any statute, law, rule, regulation, ordinance, order or
      code, now or hereafter in effect, and any judicial or administrative
      interpretation thereof by a Governmental Authority or otherwise, including
      any judicial or administrative order, consent decree or judgment.

            "Lien" or "Liens" means any mortgage, lien (statutory or other),
      pledge, security interest, encumbrance, hypothecation, assignment for
      security, or deposit arrangement or other security agreement or adverse
      claim to ownership of the Vessels or the Equipment of any kind or nature
      whatsoever, recorded or unrecorded.

            "M/V Midnight Eagle" means that certain steel pipe laying/burying
      barge Midnight Eagle including all of her Equipment, a vessel registered
      and flagged under the laws of the United States of America, Official
      Number 588872, and owned by Torch, LLC, as described on Exhibit "C"
      attached hereto and made a part hereof.

            "M/V Midnight Gator" means that certain shallow water jet/bury barge
      Midnight Gator including all of her Equipment, a vessel registered and
      flagged under the laws of the United States of America, Official Number
      1131254, and owned by Torch, LLC, as described on Exhibit "C" attached
      hereto and made a part hereof.

            "M/V Midnight Wrangler" means that certain construction/pipe lay
      vessel Midnight Wrangler including all of her Equipment, a vessel
      registered and flagged under the laws of the Republic of Vanuatu, Official
      Number 1480, and owned by Torch Offshore, as described on Exhibit "C"
      attached hereto and made a part hereof

            "Preferred Claims" has the meaning set forth in Section 3.1(a).

            "Party" or "Parties" means, in the singular, Seller or Buyer as the
      context requires, and, in the plural, Seller and Buyer.

            "Person" means an individual, a partnership, a corporation, a joint
      venture, an unincorporated association, a joint-stock company, a trust, a
      limited liability company, or other entity or a government or any agency
      or political subdivision thereof.

            "Purchase Price" has the meaning set forth in Section 3.1.

            "Requirement of Law" means, as to any Person, the certificate of
      incorporation and by-laws or partnership agreement or other organizational
      or governing documents of such Person, and any law applicable to or
      binding upon such Person or any of its properties or to which such Person
      or any of its properties is subject.

                                       4
<PAGE>

            "Sale Assets" has the meaning set forth in Section 2.1.

            "Sale Hearing" means the hearing to be scheduled and conducted by
      the Bankruptcy Court to consider approval and entry of the Approval Order.

            "Sale Motion" means the motion or motions of Seller, in form and
      substance reasonably acceptable to Buyer, seeking approval and entry of
      the Bidding Procedures Order and the Approval Order and scheduling of the
      Bidding Procedures Hearing and the Sale Hearing.

            "Security Deposit" has the meaning set forth in Section 3.2(a).

            "Security Deposit Escrow Agent" means J.P. Morgan Trust Company,
      National Association, or such other entity agreed to by the parties.

            "Security Deposit Escrow Agreement" means that certain Security
      Deposit Escrow Agreement, substantially in the form attached hereto as
      Exhibit "B".

            "Seller" has the meaning set forth in the Preamble.

            "Torch Express" has the meaning given to it in the Recitals.

            "Transaction" means the purchase and sale of the Sale Assets, along
      with any other transactions contemplated in this Agreement or related
      thereto.

            "Vessels" means, collectively, the M/V MIDNIGHT WRANGLER, the M/V
      MIDNIGHT EAGLE, vessel M/V MIDNIGHT GATOR, as identified on Exhibit "C"
      attached hereto and made a part hereof, and "Vessel" means, individually,
      any one of the Vessels.

                                   ARTICLE II
                  PURCHASE AND SALE OF SALE ASSETS; THE CLOSING

            2.1 Sale and Purchase. Seller hereby agrees to sell to Buyer, and
      Buyer hereby agrees to purchase from the Seller, effective as of the
      Closing Date, the Vessels (collectively, the "Sale Assets"). Any
      equipment, machinery or other items currently leased or rented by Seller
      shall be excluded from the Sale Assets and shall not form a part of this
      Transaction.

            2.2 The Closing. The closing of the purchase and sale of the Sale
      Assets (the "Closing") will take place as soon as reasonably practicable
      after entry of the Approval Order, during normal business hours at the
      offices of Heller, Draper, Hayden, Patrick & Horn, L.L.C. in New Orleans,
      Louisiana or at such other venue as the Seller may select. The Parties
      shall use all reasonable efforts to cause the Closing to occur within ten
      (10) Business Days following the entry of the Approval Order (such date,
      the "Closing Date").

                                       5
<PAGE>

                                   ARTICLE III
                           PURCHASE PRICE; ADJUSTMENTS

      3.1   Purchase Price.

            (a) The aggregate amount (such amount, as adjusted pursuant to any
      other provisions of this Agreement, referred to as the "Purchase Price")
      to be paid by Buyer to Seller for the Sale Assets is U.S. $18,360,000.00,
      allocated as follows: (i) $11,520,000.00 to M/V Midnight Wrangler; (ii)
      $5,760,000.00 to M/V Midnight Eagle; and (iii) $1,080,000.00 to M/V
      Midnight Gator, or such higher amount as may be bid by Buyer or a
      competing bidder at the Auction. Seller acknowledges and agrees that (1)
      Buyer shall be entitled to bid in its Debt in lieu of cash at the Auction
      with respect to any one or more of the Vessels, (2) in the event Buyer is
      the successful bidder with respect to any Vessel, Buyer shall be obligated
      to pay the following expenses (collectively, the "Preferred Claims"): (i)
      all Allowed Custodia Legis Expenses; (ii) all Allowed Secured Claims; and
      (iii) an administrative fee to Seller of $75,000 for services rendered in
      maintaining and in marketing the sale and soliciting of bids for the
      Vessels (the "Administrative Fee"), which shall be allocated as follows:
      (i) $47,058.82 to M/V Midnight Wrangler; (ii) $23,529.41 to M/V Midnight
      Eagle; and (iii) $4,411.76 to M/V Midnight Gator. In the event Buyer is
      the successful bidder with respect to any Vessel, Debtors shall receive a
      credit against the Debt equal to Buyer's approved bid price for the Vessel
      less the amount of all Preferred Claims. Such credit shall be applied
      against the Debt in the following manner: (x) first against the
      outstanding balance of principal and interest due by Debtors to Seller as
      of the commencement of the Bankruptcy Case; (y) second, against any unpaid
      post-petition interest (including any penalties and/or default interest);
      and (z) third, against reasonable attorneys' fees and all other expenses
      incurred by Seller in connection with the collection of the Debt and
      foreclosure and sale of the Vessels, in each case, as approved by the
      Bankruptcy Court.

            (b) In the event a person other than Buyer is the successful bidder
      at the Auction with respect to one or more of the Vessels, the Purchase
      Price shall be paid in cash at the Closing, the cash proceeds of the
      Purchase Price shall be deposited into the registry of the Bankruptcy
      Court and the amount thereof, plus any accrued interest, shall be
      distributed first to the payment of all Preferred Claims, and second to
      the Buyer until the Debt has been fully satisfied, and the balance shall
      remain in the registry of the Bankruptcy Court to be distributed as the
      Bankruptcy Court may order.

            (c) Except for the Administrative Fee, in no event shall Debtors or
      any successor in interest of Debtors including, without limitation, any
      trustee in bankruptcy in the Bankruptcy Case, seek or be entitled to costs
      or expenses of administration of Debtors' Bankruptcy Case against any of
      the Vessels pursuant to Section 506 (c) of the Bankruptcy Code or
      otherwise.

      3.2   Security Deposit.

            (a) In the event that a Person other than Buyer wishes to submit a
      competing bid to purchase one or more of the Vessels for cash at the
      Auction pursuant to the

                                       6
<PAGE>

      Bidding Procedures Order, such Person (a "Competing Bidder") shall execute
      the Security Deposit Escrow Agreement with Seller and shall pay a deposit
      (the "Security Deposit") equal to 10% Purchase Price allocated to each
      Vessel bid upon by such Person by wire transfer to an escrow account in
      the U.S. to be established with the Security Deposit Escrow Agent and held
      pursuant to the Bidding Procedures Order. The Competing Bidder shall be
      responsible for all costs and fees of the Security Deposit Escrow Agent.
      Buyer shall not be required to execute a Security Deposit Escrow Agreement
      or place a Security Deposit.

            (b) Upon the termination of this Agreement for any reason other than
      a breach by the Competing Bidder of its obligations hereunder, the
      Competing Bidder shall be entitled to the return of the Security Deposit
      plus any interest earned thereon pursuant to the terms of the Security
      Deposit Escrow Agreement, and the Parties shall provide joint written
      instructions to the Security Deposit Escrow Agent to such effect.

            (c) In the event of a termination of the Agreement due to a breach
      by a Competing Bidder of said Competing Bidder's obligations under this
      Agreement, the Competing Bidder shall forfeit its Security Deposit (plus
      any interest earned thereon). The forfeited Security Deposit shall be
      considered as a portion of the sale proceeds with respect to one or more
      of the Vessels (as applicable) and shall be distributed as follows: [One
      of the following alternatives, as approved by the Court:

      Alternative A:

      to the Seller.

      Alternative B:

      to satisfy the Allowed Secured Claims, if any, and GE Capital Security
      Interests pertaining to each Vessel, with the balance, if any, distributed
      to the Seller.

            (d) If a Closing occurs with a Competing Bidder, then at the
      Closing, the Seller and the Competing Bidder shall provide joint written
      instructions to the Security Deposit Escrow Agent to release the Security
      Deposit and Seller shall credit the Security Deposit plus any accrued
      interest thereon against the Purchase Price paid at Closing.

                                   ARTICLE IV
                               CLOSING DELIVERIES

      4.1 Closing Deliveries of Seller. On the Closing Date, in exchange for the
Purchase Price, Seller shall deliver the following to Buyer:

            (a) A certificate evidencing resolutions of the Board of Directors
      of the Seller, certified by the Secretary or other appropriate officer or
      agent of the Seller, duly authorizing the execution, delivery and
      performance of this Agreement and other transaction documents;

                                       7
<PAGE>

            (b) A bill of sale for the Vessels in a form recordable in the U.S.
      Coast Guard National Vessel Documentation Center with respect to M/V
      Midnight Eagle and M/V Midnight Gator and in the Vanuatu Maritime Ship
      Registry with respect to M/V Midnight Wrangler, duly notarially attested,
      transferring the Vessels free and clear of all Liens ;

            (c) A current Certificate of Ownership and Encumbrances issued by
      the appropriate Governmental Authorities of the United States of America
      (with respect to M/V Midnight Eagle and M/V Midnight Gator) and the
      Republic of Vanuatu (with respect to M/V Midnight Wrangler) showing the
      current record owners of the Vessels and stating that the Vessels are free
      from all registered Liens; and

            (d) Any additional documents reasonably required by the appropriate
      Governmental Authorities for the purpose of re-documenting Seller's
      ownership of the Vessels with the Vanuatu Ship Registry (with respect to
      the M/V Midnight Wrangler) and with the U.S. Coast Guard National Vessel
      Documentation Center (with respect to the M/V Midnight Eagle and the M/V
      Midnight Gator) free and clear of all Liens, claims and interests,
      provided Buyer notifies the Seller of any such documents as soon as
      possible after the date of this Agreement.

      4.2 Closing Deliveries of Buyer. On the Closing Date, in exchange for the
Sale Assets, Buyer shall deliver the following to Seller:

            (a) A certificate evidencing resolutions of the Board of Directors
      of the Buyer, certified by the Secretary or other appropriate officer or
      agent of the Buyer, duly authorizing the execution, delivery and
      performance of this Agreement and other documents relating hereto.
      Notwithstanding the preceding sentence, Debtors shall waive the delivery
      requirement of this subsection (a) on the Closing Date with respect to
      General Electric Capital Corporation; and

            (b) The Purchase Price, which shall be paid in accordance with
      Section 3.1 hereof.

                                    ARTICLE V
                            REPRESENTATIONS OF BUYER

      5.1 Organization, Power and Status of the Buyer. Buyer is (i) an entity
duly formed, validly existing and in good standing under the laws of the State
of Delaware, and (ii) duly authorized, to the extent necessary, to do business
in each jurisdiction where the character of its properties or the nature of its
activities makes such qualification necessary, except for any failure to be so
qualified that would not have a material adverse effect upon Buyer's ability to
perform its obligations under the Agreement. Buyer has all requisite corporate
power and authority to own and operate the property it purports to own and to
carry on its business as now being conducted and as proposed to be conducted in
respect of the purchase of the Sale Assets.

      5.2 Authorization, Enforceability, Execution and Delivery. Buyer has all
necessary corporate power and authority to execute, deliver and perform its
obligations under this Agreement and each other related document to which it is
a party. All actions on the part of

                                       8
<PAGE>

Buyer that are required for the authorization, execution, delivery and
performance of the Agreement and each other related document to which it is a
party, in each case, have been duly and effectively taken, and the execution,
delivery and performance of its obligations under this Agreement and each such
other document do not require the approval or consent of any Person, except for
such consents and approvals as have been or will be obtained on or prior to the
Closing Date, which is the date the Sale Assets will be delivered by Seller to
Buyer. This Agreement and each such other document related to the Agreement to
which Buyer is a party constitutes its legal, valid and binding obligation,
enforceable against it in accordance with the terms thereof, except as such
enforceability (i) may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other similar laws affecting the enforcement of
creditors' rights and remedies generally and (ii) is subject to general
principles of equity (regardless of whether enforceability is considered in a
proceeding in equity or at law).

      5.3 No Conflicts; Laws and Consents; No Default. Neither the execution,
delivery and performance of this Agreement nor the consummation of the
Transaction nor performance of or compliance with the terms and conditions
hereof (i) contravenes any Requirement of Law applicable to Buyer or (ii)
constitutes a default under any document related hereto to which Buyer is a
party, except for any such contravention or default that would not have a
material adverse effect upon Buyer's ability to perform its obligations under
this Agreement. Buyer is in compliance in all material respects with and not in
default under any and all Requirements of Law applicable to Buyer, the terms and
provisions of the Agreement and any other related documents to which Buyer is a
party.

      5.4 Government Approvals. All Governmental Approvals that are required to
be obtained in the name of Buyer in connection with the execution, delivery and
performance by Buyer of the Agreement and the related documents have been
obtained and are in effect on the Closing Date.

                                   ARTICLE VI
                            REPRESENTATIONS OF SELLER

      6.1 Organization, Power and Status of the Seller. Seller is (i) an entity
duly formed, validly existing and in good standing under the laws of Delaware,
and (ii) duly authorized, to the extent necessary, to do business in each
jurisdiction where the character of its properties or the nature of its
activities makes such qualification necessary, except for any failure to be so
qualified that would not have a material adverse effect upon Seller's ability to
perform its obligations under the Agreement. Seller has all requisite corporate
power and authority to own and operate the property it purports to own and to
carry on its business as now being conducted and as proposed to be conducted in
respect of the sale of the Sale Assets.

      6.2 Authorization, Enforceability, Execution and Delivery. Seller has all
necessary corporate power and authority to execute, deliver and perform its
obligations under this Agreement and each other related document to which it is
a party. Subject to entry of the Approval Order, all actions on the part of
Seller that are required for the authorization, execution, delivery and
performance of this Agreement, and each other related document to which it is a
party, in each case, has been duly and effectively taken, and the execution,
delivery and performance of its obligations under this Agreement and each such
other document does not

                                       9
<PAGE>

require the approval or consent of any Person, except for such consents and
approvals as have been obtained on or prior to the Closing, which is the time
the Sale Assets will be delivered by Seller to Buyer. Each of this Agreement and
each such other document to which Seller is a party constitutes its legal, valid
and binding obligation, enforceable against it in accordance with the terms
thereof, except as such enforceability (i) may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other similar laws
affecting the enforcement of creditors' rights and remedies generally, and (ii)
is subject to general principles of equity (regardless of whether enforceability
is considered in a proceeding in equity or at law).

      6.3 No Conflicts; Laws and Consents; No Default. Neither the execution,
delivery and performance of this Agreement nor the consummation of the
Transaction nor performance of or compliance with the terms and conditions
hereof (i) contravenes any Requirement of Law applicable to Seller or (ii)
constitutes a default under any document, related hereto to which Seller is a
party, except for any such contravention or default that would not have a
material adverse effect upon Seller's ability to perform its obligations under
this Agreement. Seller is in compliance in all material respects with and not in
default under any and all Requirements of Law applicable to Seller, the terms
and provisions of the Agreement or any other related documents to which Seller
is a party.

      6.4 Taxes. As of the Closing Date, Seller shall have filed, or caused to
be filed, all tax and information returns that are required to have been filed
by it in any jurisdiction with respect to the Sale Assets and has paid, or
caused to be paid, all taxes shown to be due and payable on such returns and all
other taxes or assessments payable by it with respect to the Sale Assets, to the
extent the same have become due and payable, but excluding any taxes the Seller
is contesting in good faith and by appropriate proceedings, provided such
contest, if determined adversely, would not subject the Sale Assets to imminent
forfeiture or sale or result in the imposition of any Lien thereon.

      6.5 Good Title. At the Closing Date, Seller will have good and marketable
title to the Vessels. The Approval Order will provide that the Sale Assets are
being sold to Buyer free and clear of any Liens and other interests pursuant to
Sections 363(b)(1) and 363(f) of the Bankruptcy Code. In this connection, Seller
represents that as of the Closing Date it shall have identified to Buyer all
known Lien holders, Lien claimants, interest holders or creditors who have
previously asserted, or to Seller's knowledge may assert a lien, claim,
encumbrance or interest against the Vessels (collectively, "Claimants") and that
such Claimants have received good and sufficient notice of the Sale Motion and
the Sale Hearing.

      6.6 U.S. Citizenship. Seller is a citizen of the United States within the
meaning of Section 2 of the Shipping Act of 1916, as amended, and the
regulations promulgated pursuant thereto, qualified to engage in the coastwise
trade of the United States.

                                   ARTICLE VII
              EXCLUSION OF WARRANTIES; NO ASSUMPTION OF LIABILITIES

      7.1 Exclusion of Warranties. The Sale Assets will be sold by order of the
Bankruptcy Court free and clear of all Liens, mortgages and encumbrances of any
kind. Except as set forth

                                       10
<PAGE>

above, Buyer shall take the Vessels "AS IS, WHERE IS," at the time title passes
to Buyer without any warranty or representation by Seller whatsoever, express or
implied, including without limitation as to title, the design, quality,
condition, merchantability or seaworthiness, or as to the fitness of the Vessels
for any particular purpose or trade, and the bills of sale referred to in
Sections 4.1(c) and 4.1(d) shall so provide. Buyer hereby represents that it has
had full opportunity to inspect the Vessels as of the Effective Date, and will,
except as otherwise provided in this Agreement, accept the Vessels upon the
satisfaction by Seller of Section 8.2 and by Buyer of Section 8.1 of this
Agreement. After the Closing, Seller shall have no obligation with respect to
the Sale Assets. Buyer's execution of the documentation at Closing shall be
conclusive evidence of Buyer's acceptance of the condition of the Sale Assets.

      7.2 No Assumption of Liabilities. Except for the Preferred Claims or as
otherwise expressly provided herein, Buyer will not assume, and hereby expressly
disclaims any assumption of, any debts, liabilities or obligations (absolute or
contingent) of any kind of Debtors, including but not limited to (i) accounts
payable, (ii) indebtedness for money borrowed, (iii) income taxes, payroll
taxes, withholding taxes, franchise taxes, and other taxes except for sales,
value added or use taxes payable by Buyer with regard to the Sale Assets, (iv)
claims, litigation, liabilities or obligations arising out of or relating to the
operations of Debtors, (v) liabilities or obligations of any kind in respect of
any past or present stockholders, directors, officers, employees or consultants
of the Debtors, whether under any contract or agreement, pursuant to any pension
plan or employee benefit plan or welfare plan, or otherwise, (vi) liabilities or
obligations relating to recapture or any depreciable deduction, and/or (vii) any
other liabilities or obligations of or relating to Debtors.

                                  ARTICLE VIII
                              CONDITIONS TO CLOSING

      8.1 Buyer's Conditions Precedent. The Buyer's obligation to accept the
Sale Assets from the Seller and to pay the Purchase Price in accordance with
this Agreement is subject to fulfillment on or before the Closing Date of the
following conditions precedent, all documents to be in form and substance
reasonably satisfactory to the Buyer:

            (a) All Governmental Approvals that are required to be obtained in
      the name of Buyer in connection with the execution, delivery and
      performance by Buyer of the Agreement and the related documents have been
      obtained and are in effect at Closing;

            (b) Seller has made all filings and has received all material
      consents, waivers and approvals from all Governmental Authorities, third
      parties and such other entities, as necessary for the consummation of the
      Transaction;

            (c) Seller's representations and warranties in Article VI of this
      Agreement are true and correct in all material respects;

            (d) Seller has not contracted the Vessels;

            (e) Seller has completed all deliveries it is required to make under
      Section 4.1; and

                                       11
<PAGE>

            (f) Seller has complied in all material respects with its
      obligations under this Agreement.

      8.2 Seller's Conditions Precedent. The Seller's obligation to sell the
Sale Assets and deliver the Vessels to Buyer on the Closing Date is subject to
fulfillment of the following conditions precedent on or before the Closing Date,
all documents to be in form and substance reasonably satisfactory to Seller:

            (a) Seller has made all filings and has received all material
      consents, waivers and approvals from all Governmental Authorities, third
      parties and such other entities, as necessary for the consummation of the
      Transaction;

            (b) Buyer's representations and warranties in Article V of this
      Agreement are true and correct in all material respects;

            (c) Buyer has paid Seller the Purchase Price in accordance with this
      Agreement;

            (d) Buyer has made all deliveries required under Section 4.2 of this
      Agreement; and

            (e) Buyer has complied in all material respects with its obligations
      under this Agreement.

                                   ARTICLE IX
                               SELLER'S BANKRUPTCY

      9.1 Procedure for Approval of Transaction.

            (a) Sale Motion. Seller shall file the Sale Motion seeking entry of
      the Approval Order and deadlines for filing and service of objections and
      responses to the relief requested in the Sale Motion on or before April
      22, 2005, and arrange for setting of the Bidding Procedures Hearing on a
      date that is no later than March 31, 2005, and arrange for setting of the
      Sale Hearing on a date that is no later than June 8, 2005.

            (b) Proposal and Submission of Approval Order. In connection with
      the Sale Motion, Seller shall propose and submit to the Bankruptcy Court
      for execution at the Sale Hearing, the Approval Order.

            (c) Cooperation. Buyer and Seller shall cooperate with filing and
      prosecuting the Sale Motion and obtaining entry of the Bidding Procedures
      Order and the Approval Order.

            (d) Marketing and Inspection Pending Sale. From the Effective Date
      of this Agreement and until the Transaction contemplated thereby is
      consummated Debtors and their agents, representatives and affiliates shall
      be permitted to, and Seller shall have the responsibility and obligation
      to, provide notice to all creditors, other parties in interest

                                       12
<PAGE>

      and any prospective buyers of the Sale Assets of the Transaction, the
      Agreement, the Bidding Procedures Hearing, Auction, Sale Hearing and any
      bidding procedures related thereto, respond to any inquiries or offers to
      purchase the Sale Assets and perform any and all other acts related
      thereto which are consistent with the bidding procedures and related
      Bankruptcy Court-authorized auction for the Sale Assets or required under
      the Bankruptcy Code or other applicable law, including, without
      limitation, supplying information relating to the Sale Assets or the
      Transaction to prospective bidders.

      9.2 Conditions to Closing relating to Bankruptcy. In addition to the
conditions to Closing set forth in Sections 8.1 and 8.2, the obligations of the
Parties to close under this Agreement shall be subject to the satisfaction at or
prior to the Closing of the following conditions:

            (a) The Bankruptcy Court shall have entered the Approval Order,
      which order shall not have been stayed, reversed, modified or amended in
      any respect and, if the Approval Order is the subject of a pending appeal,
      the consummation of the Transaction shall not be the subject of a
      presently effective stay pending appeal;

            (b) The Bankruptcy Court shall have entered the Bidding Procedures
      Order and Seller shall have complied in all materials respects with the
      requirements of the Bidding Procedures Order;

            (c) All consents, waivers, approvals and authorizations of third
      parties as are necessary to consummate the Transaction shall have been
      obtained for both parties;

            (d) If required pursuant to the terms of this Agreement, the
      approval of the appropriate Texas court authorizing the appointment of a
      substitute custodian for the M/V Wrangler has been obtained; and

            (e) Seller shall have given notice of the Sale Motion, Bidding
      Procedures Hearing, Auction and Sale Hearing as reasonably requested by
      Buyer and required by the Bankruptcy Code or applicable Bankruptcy Rules.

                                    ARTICLE X
                    TRANSFER OF TITLE AND DELIVERY OF VESSELS

      10.1 Transfer of Title. Title and risk of loss of or damage to the Sale
Assets will pass from the Seller to the Buyer at the time of Closing.

      10.2 Inspections and Due Diligence. The Buyer has inspected and accepted
the Vessels' classification records. The Buyer has also inspected the Vessels
and has accepted the Vessels and the Equipment following this inspection. The
sale is outright and definite, subject only to the terms and conditions of this
Agreement.

      10.3 Notices; Time and Place of Delivery. Seller shall deliver the M/V
Midnight Wrangler at a safe and accessible berth or anchorage at the Port of
Sabine, at an offshore location or at such other safe and accessible berth or
anchorage to which the Vessel is moved pursuant to Section 12.1(a). Seller shall
deliver the M/V Midnight Eagle and M/V Midnight Gator at a safe

                                       13
<PAGE>

and accessible berth or anchorage at Debtors' Dulac, Louisiana facility or at an
offshore location, or such other location in Louisiana as Buyer and Seller shall
mutually agree. Any Equipment not aboard the Vessels at the time of Closing
shall be delivered at its location at the time of the Closing, which location
Seller shall notify to Buyer in advance of the Closing.

      10.4 Buyer Responsibilities Upon Delivery. Immediately upon delivery,
Buyer shall have and assume all responsibility and liability as to any tugboats
or other boats or related equipment necessary to secure the Vessels at their
berths or transfer the Vessels to other berths at Buyer's choice. Buyer will
secure all necessary arrangements and approvals or other appropriate
governmental or regulatory authority regarding the berthing or transfer of the
Vessels upon delivery by Seller.

      10.5 Delivery Procedure. Seller shall deliver the Vessels to a duly
authorized representative of Buyer ("Buyer's Authorized Representative"), which
shall be effective as of the Closing and acknowledged by Buyer.

      10.6 Spares/bunkers, etc. All spare parts and spare equipment belonging to
the Sale Assets, used or unused, whether on board or not, shall become Buyer's
property. Forwarding charges, if any, shall be for Buyer's account. Seller is
not required to replace spare parts which are taken out of spare and used as
replacement prior to delivery, but the replaced items shall be the property of
Buyer. Seller may take ashore crockery, plates, cutlery, linen and other
articles bearing Seller's flag or name, provided Seller replaces same with
similar unmarked items. Library, forms, etc., exclusively for use in Seller's
Vessels, shall be excluded without compensation. Captain's, Officers' and Crew's
personal belongings including the slop chest are excluded from the Transaction,
as well as any leased or rented items.

      10.7 Name/Markings. Upon reasonable time after delivery, Buyer shall
change the name of the Vessels and alter all funnel markings.

                                   ARTICLE XI
                                      TAXES

      Any tax (including sales tax), fees and expenses in connection with the
transfer of the Sale Assets to Buyer and the registration under the Buyer's flag
shall be paid exclusively by the Buyer. Ad valorem taxes on the Sale Assets
accrued prior to the Closing shall be the responsibility of Seller. Ad valorem
taxes on the Sale Assets accruing after the Closing shall be the responsibility
of Buyer.

                                  ARTICLE XII
              CUSTODY, LOCATION AND MANNING OF VESSELS PENDING SALE

      12.1 Preamble. The Vessel M/V Midnight Wrangler is currently under arrest
and in the possession and custody of the United States Marshal for the Eastern
District of Texas. The M/V Midnight Wrangler is currently located in the Sabine
Pass at a dock operated by Gulf Copper. The M/V Midnight Eagle is currently
located at Debtors' facilities in Dulac, Louisiana and is being monitored by
employees of Debtors. The Vessels M/V Midnight Eagle and M/V Midnight Gator are
not under arrest and are currently located at Debtors' facility in Dulac and

                                       14
<PAGE>

are being monitored by employees of Debtors. Pending the sale of the Vessels
contemplated by this Agreement, the custody, location and manning of the Vessels
shall be as follows:

            (a) M/V Midnight Wrangler. The M/V Midnight Wrangler shall remain
      under arrest, although Buyer may seek to relocate this Vessel to a lay
      berth in order to reduce the custodia legis expenses, which such lay berth
      shall be acceptable to Seller. The Seller, subject to compliance with
      applicable governing body or insurance regulations, confirms that Seller
      has no opposition to the reduction of the crew to the minimal number
      acceptable to Buyer. Buyer, at its expense, shall have the right to have a
      representative aboard the M/V Midnight Wrangler at all times. Seller and
      Buyer shall cooperate in the filing of an appropriate joint motion with
      the Bankruptcy Court and/or Texas court to implement the foregoing consent
      custodial arrangement. In the event that Buyer is required to advance the
      costs of dockage of the Vessel, any such advances shall be deemed custodia
      legis expenses. Nothing herein shall be construed to restrict Seller and
      Buyer's right to contest any expenses alleged to have been incurred by any
      person, including, without limitation, C-Mar America, Inc., in respect of
      any of the Vessels, including whether any such expenses constitute
      custodia legis expenses or give rise to a Lien on the Vessel;

            (b) M/V Midnight Eagle. The M/V Midnight Eagle shall remain at
      Debtors' facilities in Dulac, Louisiana at no cost to Buyer. Unless
      otherwise agreed between Buyer and Seller, Seller shall continue to
      provide routine maintenance to this Vessel in the same manner as Seller
      has since the filing of the Bankruptcy Case, and the M/V Midnight Eagle
      shall at all times remain at said facility in Dulac, Louisiana. Buyer, at
      its expense, shall have the right to have a representative aboard the M/V
      Midnight Eagle at all times. Buyer has taken the position that the
      American Crane, Model 5299 and Gallion hydraulic pedestal crane
      (collectively, the "Cranes") listed as machinery belong to M/V Midnight
      Eagle in the Perry H. Beebe & Associates, Inc. condition and valuation
      survey dated January 30, 2003 is encumbered by Buyer's preferred ship
      mortgage and perfected UCC security interest in the M/V Midnight Eagle.
      Seller has advised that Regions Bank claims a competing security interest
      in the Cranes. Buyer specifically reserves its secured claim in the
      Cranes, which, if not amicably resolved, shall be referred to the
      Bankruptcy Court for adjudication; and

            (c) M/V Midnight Gator. The Vessel Midnight Gator shall remain in
      the possession and custody of Seller and shall at all times remain at
      Debtors' facilities in Dulac, Louisiana at no cost to Buyer. Unless
      otherwise agreed between Buyer and Seller, Seller shall continue to
      provide maintenance to the M/V Midnight Gator in the same manner as Seller
      has since the commencement of the Bankruptcy Case, and the M/V Midnight
      Gator shall at all times remain at said facility in Dulac, Louisiana.
      Buyer, at its expense, shall have the right to have a representative
      aboard the M/V Midnight Gator at all times. Seller shall return to the M/V
      Midnight Gator one of the two (2) Caterpillar Model 3512-D1 (S/N 50Y00958
      and S/N 50Y00962) engines driving skid mounted jet pumps removed from the
      Vessel or pay to Buyer the fair market value thereof as determined by
      Dufour, Laskay & Strouse.

                                       15
<PAGE>

      12.2 Insurance Requirements. Until the Sale of the Vessels has been
approved by the Bankruptcy Court, Seller shall keep and maintain all required
hull and machinery and P&I insurance on the Vessels as required by Buyer's
mortgages referred to in the Recitals to this Agreement.

      12.3 Covenant Not to Remove. Seller covenants and agrees that it will not
remove or permit the removal of any equipment or appurtenances from the Vessels
that are encumbered by Buyer's preferred ship mortgages and/or UCC security
interests. Seller further covenants that to the extent any equipment or
appurtenances that were encumbered by Buyer's preferred ship mortgages and/or
security interests were removed and are still owned by the Debtors, such
equipment and appurtenances shall be placed back aboard or otherwise segregated
at a mutually agreed location and sold with the respective Vessels. Seller
further agrees to allow Buyer to confirm compliance with the requirements
hereof.

      12.4 Reservation of Rights Under Insurance Policies. Buyer reserves all of
its rights as loss payee/additional insured under the insurance policies for the
Vessels and as assignee of the right to insurance payments with respect to any
claim, loss or damage relating to the Vessels, including, without limitation,
its right to collect all recoverable insurance proceeds due as a result of the
casualty suffered by the M/V Midnight Wrangler in December 2004 resulting in
damage to her deck and modular lay system.

                                  ARTICLE XIII
                                   TERMINATION

      13.1 Termination. In addition to any other termination rights set forth in
this Agreement, this Agreement may be terminated at any time at or prior to the
Closing, as follows:

            (a) In writing, by mutual consent of the Parties;

            (b) In the event the Sale Hearing is not held on or before May 31,
      2005, or the Bidding Procedures Hearing is not held on or before May 4,
      2005 (unless otherwise agreed to in writing by Buyer); or

            (c) In the event the Bankruptcy Court fails to execute or enter the
      Bidding Procedures Order on or before May 6, 2005 or fails to enter the
      Approval Order on or before June 30, 2005, as contemplated by this
      Agreement.

                                  ARTICLE XIV
                            MISCELLANEOUS PROVISIONS

      14.1 Amendment. This Agreement may be amended from time to time by written
agreement signed by the Parties.

      14.2 Severability. If any provision of this Agreement is held to be in
conflict with any Law or is otherwise held to be unenforceable for any reason
whatsoever, such circumstances shall not have the effect of rendering the
provision in question inoperative or unenforceable in any other case or
circumstance, or of rendering any other provision or provisions herein

                                       16
<PAGE>

contained invalid, inoperative or unenforceable to any extent whatsoever. The
invalidity of any one or more phrases, sentences, clauses or sections of this
Agreement shall not affect the remaining portions of this Agreement, or any part
thereof.

      14.3 Notices. Unless otherwise provided in this Agreement, any Notice
permitted or required hereunder must be sent by (i) personal delivery, (ii)
expedited delivery service with proof of delivery, (iii) United States
registered or certified mail, postage prepaid, or (iv) telecopy (provided that
the telecopy is confirmed by mail in the manner previously described), addressed
as follows:

            If to the Buyer to:

            General Electric Capital Corporation
            c/o

            Andrew J. Bella
            GE Capital - Capital Funding, Inc.
            401 Merritt 7, Suite 23
            Norwalk, CT  06851-1177
            Telefax:  229-1992

             and

            Ronald E. Lis
            GE Commercial Finance
            500 West Monroe St., RM 18-127
            Chicago, IL 60661
            Telefax:  (312) 441-7395

            with a copy to:

            Henry A. King, Esq.
            Robert J. Stefani, Jr., Esq.
            King, LeBlanc & LeBlanc, P.L.L.C.
            201 St. Charles Avenue, 45th Floor
            New Orleans, Louisiana  70170
            Telefax:  (504) 582-1233

            If to the Seller to:

            Torch Express, L.L.C.
            c/o Torch Offshore, Inc.
            c/o David Phelps, Chief Restructuring Advisor
            Telecopier:  (877) 711-6966
            c/o Robert Fulton, Manager
            Telecopier:  (504) 367-8605
            401 Whitney Avenue, Suite 400

                                       17
<PAGE>

            Gretna, Louisiana 70056

            with a copy to:

            Heller, Draper, Hayden, Patrick & Horn, L.L.C.
            650 Poydras Street, Suite 2500
            New Orleans, LA  70130
            Attn:  Jan M. Hayden
            Telephone: (504) 581-9595
            Telecopier: (504) 525-3761

      Any purported Notice by e-mail shall be without effect. All Notices
required under this Agreement should specifically state that this is a "Notice
pursuant to Section 14.3 of this Agreement."

      14.4 Captions. The captions or headings in this Agreement are for
convenience only and in no way define, limit or describe the scope or intent of
any provisions or sections of this Agreement.

      14.5 No Partnership. Nothing herein contained shall be deemed or construed
to create a partnership or joint venture between the Parties.

      14.6 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto on separate counterparts, each of
which shall be deemed to be an original. Such counterparts shall constitute one
and the same agreement.

      14.7 General Interpretive Principles. Except as otherwise expressly
provided or unless the context otherwise requires, the defined terms in this
Agreement shall include the plural as well as the singular, and the use of any
gender herein shall be deemed to include any other gender.

      14.8 Punitive, Consequential, and Special Damages. Under no circumstances
shall either Party be liable to the other for any punitive, consequential, or
special damages.

      14.9 Further Assurances. The Seller and the Buyer agree to take all
necessary action and to deliver or cause to be delivered on the Closing Date and
at such other times thereafter any such additional certificates, documents or
instruments as either of them may reasonably request for the purposes of
carrying out this Agreement and the transactions contemplated hereby.

      14.10 Entire Agreement. This Agreement, including any Exhibits attached
hereto, constitutes the entire understanding and agreement among the parties
with respect to the subject matter of this Agreement, and supersedes all prior
and contemporaneous agreements and understandings, inducements, or conditions,
express or implied, oral or written, except as contained in this Agreement.
Except as specifically set forth herein, this Agreement is not dependent upon
the existence of any other agreement.

                                       18
<PAGE>

      14.11 Finders or Broker's Fees. With the exception of their respective
financial advisors, each of Buyer (on the one hand), and Seller (on the other
hand), represents and warrants that neither it nor any of its respective
affiliates has dealt with any broker or finder in connection with any of the
transactions contemplated by this Agreement, other than Bridge Associates, LLC
("Bridge") and Raymond James & Associates ("RJA"). Notwithstanding any prior or
subsequent orders of the Bankruptcy Court authorizing the employment and
retention of Bridge and RJA, and their right to any fees in connection with the
sale of the Vessels, Buyer shall have the sole and absolute discretion as to
whether any fees are received by Bridge or RJA out of the sale proceeds of the
Vessels.

      14.12 No Assignment. This Agreement may not be assigned in whole or in
part by Seller or Buyer, except that Buyer may assign this Agreement to a wholly
owned subsidiary of Buyer; provided, however, that in the event of such
permitted assignment, Buyer shall not be relieved of its obligations hereunder
and further, the assignee shall assume the obligations of Buyer hereunder.

      14.13 Governing Law. Except for issues relating to ownership of the
Vessels and recorded liens on the Vessels, which shall be governed by the laws
of the jurisdiction of their respective registrations, the Agreement will be
governed by and interpreted in accordance with the laws of the State of
Louisiana, without giving effect to the principles of conflicts of law.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       19
<PAGE>

      IN WITNESS WHEREOF both parties have hereunto placed their signatures on
the day and year first written above.

                                                     SELLER:

                                                     TORCH OFFSHORE, L.L.C.

                                                     BY:  ______________________
                                                     ITS: ______________________

                                                     TORCH OFFSHORE, INC.

                                                     BY:  ______________________
                                                     ITS: ______________________

                                                     TORCH EXPRESS, L.L.C.

                                                     BY:  ______________________
                                                     ITS: ______________________

                                                     BUYER:

                                                     GENERAL ELECTRIC CAPITAL
                `                                    CORPORATION

                                                     BY:  ______________________
                                                     ITS: ______________________<PAGE>

                            ASSET PURCHASE AGREEMENT

                                 BY AND BETWEEN

                               EPIC DIVERS, INC.,
                                    AS BUYER,
                                       AND

                              TORCH OFFSHORE, INC.,
                             TORCH OFFSHORE L.L.C.,
                                       AND
                             TORCH EXPRESS, L.L.C.,
                                   AS SELLERS

                                  JUNE 9, 2005

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                 <C>
ARTICLE I DEFINITIONS...........................................................     1

ARTICLE II PURCHASE AND SALE OF SUBJECT ASSETS; THE CLOSING.....................     7

      2.1     Sale and Purchase.................................................     7
      2.2     Excluded Assets...................................................     7
      2.3     [Intentionally omitted]...........................................     7
      2.4     Excluded Liabilities..............................................     7
      2.5     The Closing.......................................................     8

ARTICLE III PURCHASE PRICE; SECURITY DEPOSIT....................................     9

      3.1     Purchase Price....................................................     9
      3.2     Security Deposit..................................................     9

ARTICLE IV CLOSING DELIVERIES...................................................     9

      4.1     Closing Deliveries of Sellers.....................................     9
      4.2     Closing Deliveries of Buyer.......................................    10

ARTICLE V REPRESENTATIONS OF BUYER..............................................    10

      5.1     Organization, Power and Status of Buyer...........................    10
      5.2     Authorization, Enforceability, Execution and Delivery.............    10
      5.3     No Conflicts; Laws and Consents; No Default.......................    10
      5.4     Financing.........................................................    11
      5.5     Removal of Subject Assets.........................................    11

ARTICLE VI REPRESENTATIONS OF SELLERS...........................................    11

      6.1     Organization, Power and Status of Seller..........................    11
      6.2     Authorization, Enforceability, Execution and Delivery.............    11
      6.3     No Conflicts; Laws and Consents; No Default.......................    12
      6.4     Taxes.............................................................    12
      6.5     Property; Title; Sufficiency......................................    13
      6.6     Legal Proceedings.................................................    13
      6.7     Compliance with Laws..............................................    13
      6.8     Environmental Matters.............................................    13
      6.9     [Intentionally omitted]...........................................    14

ARTICLE VII SURVIVAL; EXCLUSION OF WARRANTIES; NO ASSUMPTION OF
      LIABILITIES; EMPLOYEES....................................................    14

      7.1     Survival..........................................................    14
      7.2     Exclusion of Warranties...........................................    15
      7.3     No Assumption of Liabilities......................................    15
      7.4     No Obligation for Employees.......................................    15

ARTICLE VIII CONDITIONS TO CLOSING..............................................    15

      8.1     Buyer's Conditions Precedent......................................    15
      8.2     Sellers' Conditions Precedent.....................................    16
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                 <C>
ARTICLE IX SELLERS' BANKRUPTCY..................................................    17

      9.1     Procedure for Approval of Transaction.............................    17
      9.2     Condition to Closing Relating to Bankruptcy.......................    17

ARTICLE X COVENANTS; TRANSFER OF TITLE AND DELIVERY OF ASSETS...................    17

      10.1    Covenants with Respect to Conduct Prior to Closing................    17
      10.2    Transfer of Title.................................................    19
      10.3    [Intentionally omitted]...........................................    19
      10.4    Notices; Time and Place of Delivery...............................    19
      10.5    [Intentionally omitted]...........................................    19
      10.6    Delivery Procedure................................................    19
      10.7    Spares, etc.......................................................    19

ARTICLE XI TAXES................................................................    20

      11.1    Responsibility for Taxes..........................................    20
      11.2    Cooperation on Tax Matters........................................    20
      11.3    [Intentionally omitted]...........................................    20

ARTICLE XII DISPUTE RESOLUTION; SERVICE; GOVERNING LAW..........................    21

      12.1    Dispute Resolution; Service of Process; Waiver of Jury Trial......    21
      12.2    Governing Law.....................................................    22

ARTICLE XIII TERMINATION........................................................    22

      13.1    Termination.......................................................    22
      13.2    Procedure Upon Termination........................................    23
      13.3    Effect of Termination.............................................    23

ARTICLE XIV MISCELLANEOUS PROVISIONS............................................    24

      14.1    Amendments and Waivers............................................    24
      14.2    Severability......................................................    24
      14.3    Notices...........................................................    24
      14.4    Captions..........................................................    25
      14.5    No Partnership....................................................    25
      14.6    Counterparts; Delivery by Facsimile...............................    26
      14.7    General Interpretive Principles...................................    26
      14.8    Punitive, Consequential, and Special Damages......................    26
      14.9    Further Assurances................................................    26
      14.10   Entire Agreement..................................................    27
      14.11   Finders or Broker's Fees..........................................    27
      14.12   Binding Effect; Assignment........................................    27
      14.13   [Intentionally omitted]...........................................    27

Sellers' Schedules

Schedule 6.4 - Taxes............................................................    48
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                 <C>
Schedule 6.6 -- Legal Proceedings...............................................    50

Schedule 6.7(a) -- Compliance with Laws.........................................    54

Exhibits

Exhibit A Subject Assets........................................................    57

Exhibit B Bill of Sale..........................................................

Exhibit C Form of Protocol of Delivery and Acceptance...........................    74
</TABLE>

                                      iii
<PAGE>

                            ASSET PURCHASE AGREEMENT

            THIS ASSET PURCHASE AGREEMENT (this "Agreement") is entered into as
of June 9, 2005 (the "Effective Date"), by and between EPIC Divers, Inc., a
Louisiana corporation ("Buyer"), and Torch Offshore, Inc., a Delaware
corporation ("Torch"), Torch Offshore, L.L.C., a Delaware limited liability
company ("Offshore"), and Torch Express, L.L.C., a Louisiana limited liability
company ("Express", with Torch and Offshore, each a "Seller" and collectively,
"Sellers"). Buyer and each Seller are sometimes individually referred to as a
"Party" and collectively as the "Parties."

                                  WITNESSETH:

            WHEREAS, Sellers are the owners of that certain saturation system,
as more fully described on Exhibit A hereto (the "SAT System"), sometimes
collectively referred to as the "Subject Assets";

            WHEREAS, on January 7, 2005 (the "Petition Date"), Torch, Offshore
and Express petitioned the United States Bankruptcy Court for the Eastern
District of Louisiana for relief under chapter 11 of title 11 of the United
States Code (which such proceedings are being jointly administered under Case
No. 05-10137 ("B")); and

            WHEREAS, Sellers desire to sell, transfer and assign to Buyer
desires to acquire from Sellers, the Subject Assets, all as more specifically
provided herein;

            In consideration of the mutual covenants and agreements herein
contained, and of other valuable consideration, the receipt of which is hereby
acknowledged, the Parties hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

The following terms employed in this Agreement have the meanings set forth as
follows

      "Affiliate" means, with respect to any Person, any other Person that,
directly or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, such Person, and the term
"control" (including the terms "controlled by" and "under common control with")
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person, whether through
ownership of voting securities, by contract or otherwise

      "Action" means any action, motion, application, complaint, hearing,
investigation, petition, suit or other proceeding, whether in law or in equity,
or before any arbitrator or Governmental Authority.

      "Agreement" has the meaning set forth in the Preamble.

      "Approval Order" means a Final Order or Final Orders of the Bankruptcy
Court, in form and substance reasonably acceptable to Buyer that, among other
things, (i) approves, pursuant to

<PAGE>

sections 363(b) and 363(f) of the Bankruptcy Code, (A) the execution, delivery
and performance by Sellers of this Agreement, and the other instruments and
agreements contemplated hereby, (B) the sale of the Subject Assets free and
clear of any and all Liens (other than Permitted Exceptions) to Buyer on the
terms set forth herein, and (C) the performance by each of Sellers and Buyer of
its respective obligations under this Agreement; and (ii) finds that Buyer is a
"good faith" purchaser within the meaning of section 363(m) of the Bankruptcy
Code, and which such Order or Orders shall be in full force and effect and shall
not have been modified or amended in any respect.

      "Auction" means the Bankruptcy Court auction for the Subject Assets to be
held in accordance with the Scheduling Order. The Auction shall be held at a
location to be selected by Sellers, and the auctioneer at the Auction shall be
Torch or its designee.

      "Bankruptcy Case" means Sellers' chapter 11 cases currently pending before
the Bankruptcy Court as jointly administered under Case No. 05-10137 ("B").

      "Bankruptcy Code" means Title 11 of the United States Code, as heretofore
and hereafter amended, and codified as 11 U.S.C. section 101, et seq., or any
successor statute, and applicable federal and local rules of bankruptcy
procedure thereunder.

      "Bankruptcy Court" means the United States Bankruptcy Court for the
Eastern District of Louisiana or any other court having jurisdiction over the
Bankruptcy Case.

      "Bidding Procedures" has the meaning set forth in the Scheduling Order.

      "Business Day" means any day of the year on which national banking
institutions in New York, New York, Houston, Texas and New Orleans, Louisiana
are open to the public for conducting business and are not required or
authorized to close.

      "Buyer" has the meaning set forth in the Preamble.

      "Classification Society" or "Class" means that "classification society" or
"class" referred to in Exhibit A.

      "Closing" has the meaning set forth in Section 2.5.

      "Closing Date" has the meaning set forth in Section 2.5.

      "Code" means the Internal Revenue Code of 1986, as amended.

      "Competing Transaction" means any sale or other disposition of all or a
portion of the Subject Assets to a Person other than Buyer.

      "Contract" means any contract, agreement, indenture, note, bond, loan,
instrument, lease, commitment or other arrangement or agreement, whether written
or oral.

                                       2
<PAGE>

      "Employee" means any individual who is employed by Sellers in connection
with the operation of the Subject Assets, including, without limitation, any
individual who is hired prior to the Closing Date in respect of the operation of
the Subjects Assets after the date hereof.

      "Environmental Costs and Liabilities" means, with respect to any Person,
all liabilities, obligations, responsibilities, Remedial Actions, losses,
damages, punitive damages, consequential damages, treble damages, costs and
expenses (including all reasonable fees, disbursements and expenses of counsel,
experts and consultants and costs of investigation and feasibility studies),
fines, penalties, sanctions and interest incurred as a result of any claim or
demand by any other Person or in response to any violation of Environmental Law,
whether known or unknown, accrued or contingent, whether based in contract,
tort, implied or express warranty, strict liability or criminal or civil
statute, to the extent based upon, related to, or arising under or pursuant to
any applicable Environmental Law or applicable Environmental Permit (including
an order or agreement with any Governmental Authority or other Person under an
applicable Environmental Law), violation of applicable Environmental Law or a
Release or threatened Release of Hazardous Materials.

      "Environmental Law" means any applicable international, transnational,
foreign, federal, state or local statute, regulation, ordinance, rule of common
law or other legal requirement as now in effect in any way relating to the
protection of human health and safety from Hazardous Materials, the environment
or natural resources, including, without limitation, the Comprehensive
Environmental Response, Compensation and Liability Act (42 U.S.C. Section 9601
et seq.), the Hazardous Materials Transportation Act (49 U.S.C. App. Section
1801 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. Section
6901 et seq.), the Clean Water Act (33 U.S.C. Section 1251 et seq.), the Clean
Air Act (42 U.S.C. Section 7401 et seq.) the Toxic Substances Control Act (15
U.S.C. Section 2601 et seq.), the Federal Insecticide, Fungicide, and
Rodenticide Act (7 U.S.C. Section 136 et seq.) (to the extent it regulates
Hazardous Materials), and the Occupational Safety and Health Act (29 U.S.C.
Section 651 et seq.), as each has been or may be amended and the regulations
promulgated pursuant thereto.

      "Environmental Permit" means any Permit required by applicable
Environmental Laws for the ownership, use or operation of the Subject Assets.

      "Excluded Assets" means all property and assets of Sellers not listed on
Exhibit A hereto.

      "Excluded Liabilities" has the meaning set forth in Section 2.4.

      "Express" has the meaning set forth in the Preamble.

      "Final Order" means a judgment, order or decree of the relevant
Governmental Authority that has not been reversed, stayed, enjoined, set aside,
annulled, vacated or suspended and, with respect to any judgment, order or
decree of the Bankruptcy Court, any waiting period prescribed by Law before the
transactions contemplated hereby may be consummated has expired (unless such
waiting period has been waived by an Order of the Bankruptcy Court or by the
Buyer and Sellers).

      "Governmental Approval" means any authorization, consent, approval,
license, franchise, ruling, permit, tariff, rate, certification, exemption,
filing or registration by or with any

                                       3
<PAGE>

Governmental Authority relating to the ownership of the Subject Assets or to the
execution, delivery or performance of this Agreement.

      "Governmental Authority" means any international or transnational
regulatory or administrative authority, any national, state or local government,
or any political subdivision or instrumentality thereof, and any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government and any other Governmental Authority
with authority over Buyer or Sellers, the operation of the Vessels or any of the
other Subject Assets.

      "Hazardous Material" means any substance, material or waste that is
listed, classified, or otherwise regulated under or pursuant to any applicable
Environmental Law as "hazardous," "toxic," "pollutant," "contaminant,"
"radioactive," or words of similar meaning or effect, including, without
limitation, petroleum and its by-products, asbestos, polychlorinated biphenyls,
radon, and urea formaldehyde insulation.

      "Indebtedness" of any Person means, without duplication, (i) the principal
of and premium (if any) in respect of (A) indebtedness of such Person for money
borrowed and (B) indebtedness evidenced by notes, debentures, bonds or other
similar instruments for the payment of which such Person is responsible or
liable; (ii) all obligations of such Person issued or assumed as the deferred
purchase price of property, all conditional sale obligations of such Person and
all obligations of such Person under any title retention agreement; (iii) all
obligations of such Person under leases required to be capitalized in accordance
with generally accepted accounting principles; (iv) all obligations of such
Person for the reimbursement of any obligor on any letter of credit, banker's
acceptance or similar credit transaction; (v) the liquidation value of all
redeemable preferred stock of such Person; (vi) all obligations of the type
referred to in clauses (i) through (v) of any Persons for the payment of which
such Person is responsible or liable, directly or indirectly, as obligor,
guarantor, surety or otherwise, including guarantees of such obligations; and
(vii) all obligations of the type referred to in clauses (i) through (vi) of
other Persons secured by any Lien on any property or asset of such Person
(whether or not such obligation is assumed by such Person).

      "Knowledge" means actual knowledge, after reasonable inquiry, of the
officers of the Party being held responsible for such knowledge.

      "Law" means any applicable international or transnational, foreign,
federal, state or local law (including common law), statute, rule, regulation,
ordinance, order, code, treaty or other legally binding requirement, in effect
now or as of the Closing Date, including any judicial or administrative order,
consent decree or judgment.

      "Legal Proceeding" means any judicial, administrative or arbitral actions,
suits, proceedings (public or private) or claims or any proceedings by or before
a Governmental Authority.

      "Liability" means any debt, loss, damage, adverse claim (including claims
as defined in the Bankruptcy Code), liability, royalty, deficiency or obligation
(whether direct or indirect, known or unknown, asserted or unasserted, absolute
or contingent, accrued or unaccrued,

                                       4
<PAGE>

liquidated or unliquidated, or due or to become due, and whether in contract,
tort, strict liability or otherwise), and including all costs and expenses
relating thereto.

      "Lien" means any mortgage, lien (statutory or other, and including all
"Liens" defined in the Bankruptcy Code), pledge, security interest or interest
of ownership, encumbrance, deed of trust, hypothecation, assignment for
security, claim, lease, charge, option, right of first refusal, easement,
servitude, proxy, voting trust or agreement, transfer restriction or deposit
arrangement or other security agreement or adverse claim to ownership of the
Vessels or the other Subject Assets of any kind or nature whatsoever, whether
recorded or unrecorded.

      "Material Adverse Effect" means (i) a material adverse effect on the
condition, utilization or value of the Subject Assets or (ii) a material adverse
effect on the ability of Sellers to consummate the transactions contemplated by
this Agreement or perform their obligations under this Agreement.

      "Offshore" has the meaning set forth in the preamble.

      "Order" means any order, injunction, judgment, decree, ruling, writ,
assessment or arbitration award of a Governmental Authority, including, without
limitation, any order entered by the Bankruptcy Court in the Bankruptcy Case.

      "Outside Date" has the meaning set forth in Section 13.1(c).

      "Permitted Exceptions" means (i) all defects, exceptions, restrictions,
easements, rights of way and encumbrances disclosed in policies of title
insurance which have been made available to Buyer; (ii) statutory liens for
current Taxes, assessments or other governmental charges not yet delinquent or
the amount or validity of which is being contested in good faith by appropriate
proceedings provided an appropriate reserve is established therefor; (iii)
mechanics', carriers', workers', repairers' and similar Liens arising or
incurred in the ordinary course of business that are not material to the
operations and condition of the Subject Assets so encumbered and that are not
resulting from a breach, default or violation by any Seller of any Contract or
Law; (iv) zoning, entitlement and other land use and environmental regulations
of any Governmental Authority provided that such regulations have not been
violated; and (v) such other imperfections in title, charges, easements,
restrictions and encumbrances which do not materially detract from the value of
or materially interfere with the present use of any Subject Assets subject
thereto or affected thereby.

      "Permit" means any approval, authorization, consent, license, permit,
franchise, certificate or Order of a Governmental Authority, or any waiver of
the foregoing, necessary or appropriate for the operation and present use of the
Subject Assets or for the transfer of the Subject Assets.

      "Person" means an individual, a partnership, a corporation, a joint
venture, an unincorporated association, a joint-stock company, a trust, a
limited liability company, or other entity or a Governmental Authority or any
agency or political subdivision thereof.

      "Petition Date" has the meaning assigned to such term in the recitals of
this Agreement.

                                       5
<PAGE>

      "Protocol of Delivery and Acceptance" has the meaning set forth in Section
10.6.

      "Purchase Price" has the meaning set forth in Section 3.1.

      "Release" means any release, spill, emission, leaking, pumping, injection,
deposit, disposal, discharge, dispersal, or leaching of Hazardous Material into
the environment.

      "Remedial Action" means all actions to (i) clean up, remove, treat or in
any other way address any Release of Hazardous Material; (ii) prevent the
threatened Release of any Hazardous Material so it does not endanger or threaten
to endanger public health or welfare or the environment; (iii) perform
pre-remedial studies and investigations or post-remedial monitoring and care
associated with a Release of Hazardous Material; or (iv) correct a condition of
noncompliance with applicable Environmental Laws.

      "Sale Hearing" means the hearing to be scheduled and conducted by the
Bankruptcy Court to consider approval and entry of the Approval Order.

      "Sale Motion" means the motion or motions of Sellers filed with the
Bankruptcy Court on April 6, 2005 seeking approval and entry of the Approval
Order and scheduling of the Sale Hearing, with any modifications, amendments or
supplements thereto that are reasonably acceptable to Buyer.

      "Scheduling Hearing" means the hearing scheduled and conducted by the
Bankruptcy Court on April 27, 2005 and subsequent thereto to consider, among
other things, issuance of the Scheduling Order.

      "Scheduling Motion" means the motion of Sellers filed with the Bankruptcy
Court on April 6, 2005 seeking setting of the Scheduling hearing and approval of
the Scheduling Order, with any modifications, amendments or supplements thereto
that are reasonably acceptable to Buyer.

      "Scheduling Order" means the order of the Bankruptcy Court, dated May 6,
2005 approving, among other things, bidding procedures for the Auction.

      "Security Deposit" has the meaning set forth in Section 3.2.

      "Seller" and "Sellers" have the meanings set forth in the preamble.

      "Subject Assets" has the meaning set forth in the recitals to this
Agreement. In the interest of clarity, the Subject Assets do not include the
Excluded Assets.

      "Tax" or "Taxes" means (i) any and all federal, state, local or foreign
taxes, charges, fees, imposts, levies or other assessments, including, without
limitation, all net income, gross receipts, capital, sales, use, ad valorem,
value added, transfer, franchise, profits, inventory, capital stock, license,
withholding, payroll, employment, social security, unemployment, excise,
severance, stamp, occupation, property and estimated taxes, customs duties,
fees, assessments and charges of any kind whatsoever, and (ii) all interest,
penalties, fines, additions to tax or additional amounts imposed by any Taxing
Authority in connection with any item described in clause (i),

                                       6
<PAGE>

and (iii) any liability in respect of any items described in clauses (i) and/or
(ii) payable by reason of contract, assumption, transferee liability, operation
of law, Treasury Regulation section 1.1502-6(a) (or any predecessor or successor
thereof of any analogous or similar provision under law) or otherwise.

      "Taxing Authority" means the IRS and any other Governmental Authority
responsible for the administration of any Tax.

      "Tax Return" means any return, report or statement required to be filed
with respect to any Tax (including any attachments thereto, and any amendment
thereof) including, but not limited to, any information return, claim for
refund, amended return or declaration of estimated Tax, and including, where
permitted or required, combined, consolidated or unitary returns for any group
of entities that includes the Sellers, any of their respective subsidiaries, or
any of their respective Affiliates.

      "Termination Date" has the meaning set forth in Section 13.1.

      "Torch" has the meaning set forth in the preamble.

      "Transaction" means the purchase, sale and assignment of the Subject
Assets contemplated in this Agreement.

                                   ARTICLE II
                PURCHASE AND SALE OF SUBJECT ASSETS; THE CLOSING

      2.1 Sale and Purchase. On the terms and subject to the conditions set
forth in this Agreement, at the Closing, Sellers shall sell, transfer, convey,
assign and deliver to Buyer, and Buyer shall purchase, acquire and accept from
Sellers, all of the Sellers' right, title and interest in, to and under the
Subject Assets, free and clear of Liens except for Permitted Exceptions.

      2.2 Excluded Assets. Nothing herein contained shall be deemed to sell,
transfer, assign or convey the Excluded Assets to Buyer, and Sellers shall
retain all right, title and interest to, in and under the Excluded Assets.

      2.3 [Intentionally omitted].

      2.4 Excluded Liabilities. Buyer will not assume or be liable for any
Excluded Liabilities. "Excluded Liabilities" shall mean all Liabilities arising
out of, relating to or otherwise in respect of the ownership, use or operation
of the Subject Assets on or before the Closing Date and all other Liabilities of
Sellers (whether known or unknown or asserted or unasserted as of the Closing
Date and irrespective of when any claim in respect thereof shall be made),
including, without limitation, the following Liabilities:

            (a) all Liabilities in respect of any and all products sold and
      services performed by Sellers on or before the Closing Date;

            (b) all Environmental Costs and Liabilities to the extent arising
      out of, relating to or otherwise in respect of the ownership, use or
      operation of the Subject Assets (or any

                                       7
<PAGE>

      condition thereon) on or before the Closing Date, including, without
      limitation, any (i) Release or continuing Release (if existing as of the
      Closing) of any Hazardous Material, regardless of by whom or (ii) any
      noncompliance with applicable Environmental Laws;

            (c) all Liabilities arising out of, relating to or with respect to
      (i) the employment or performance of services, or termination of
      employment or services by Sellers or any of its Affiliates of any Person
      on or before the Closing Date, (ii) workers' compensation claims relating
      to the Sellers or the use and operation of the Subject Assets on or before
      the Closing Date, irrespective of whether such claims are made prior to or
      after the Closing or (iii) any employee benefit plan of Sellers or any of
      their respective Affiliates or subsidiaries;

            (d) all Liabilities arising out of, under or in connection with any
      of the Sellers' Contracts;

            (e) all Liabilities arising out of, under or in connection with any
      Indebtedness of Sellers;

            (f) all Liabilities for (i) Taxes of Seller, (ii) Taxes that relate
      to the Subject Assets for taxable periods (or portions thereof) ending on
      or before the Closing Date, and (iii) payments under any Tax allocation,
      sharing or similar agreement (whether oral or written);

            (g) all Liabilities in respect of any pending or threatened Legal
      Proceeding, or any claim arising out of, relating to or otherwise in
      respect of (i) the ownership, use or operation of the Subject Assets to
      the extent such Legal Proceeding or claim relates to such ownership, use
      or operation on or prior to the Closing Date, or (ii) any Excluded Asset;

            (h) any and all Liabilities of Sellers that are discharged pursuant
      to Section 1141(d)(1) of the Bankruptcy Code or any Order of the
      Bankruptcy Court; and

            (i) any and all Liabilities of Sellers, the collection of which has
      been permanently enjoined by an Order of the Bankruptcy Court or by any
      applicable provision of the Bankruptcy Code (including, without
      limitation, Section 524 of the Bankruptcy Code).

      2.5 The Closing. The closing of the purchase and sale of the Subject
Assets (the "Closing") will take place at a time agreed by the Parties, during
normal business hours at the offices of Heller, Draper, Hayden, Patrick & Horn,
L.L.C. in New Orleans, Louisiana, or at such other venue as Sellers and Buyer
mutually agree. The Parties shall use all reasonable efforts to cause the
Closing to occur on the date no later than three (3) Business Days following the
date on which all conditions to Closing hereunder are satisfied or waived (other
than such conditions that by their nature are to be satisfied at the Closing,
but subject to the satisfaction or waiver of such conditions), unless another
time or date, or both, are agreed to in writing by the Parties. The date on
which the Closing shall be held is referred to in this Agreement as the "Closing
Date".

                                       8
<PAGE>

                                  ARTICLE III
                        PURCHASE PRICE; SECURITY DEPOSIT

      3.1 Purchase Price. The consideration to be given and paid by Buyer to
Sellers for the Subject Assets shall be $2,800,000 in cash (the "Purchase
Price").

      3.2 Security Deposit.

            (a) On May 27, 2005, Buyer provided to Seller a certified check in
      the amount of $275,000.00 representing the Security deposit herein. the
      Security Deposit plus any interest or other amount accrued thereon shall
      either (i) be applied as a deposit towards the Purchase Price as provided
      in Section 4.2(b), or (ii) be returned to Buyer in the event that this
      Agreement is terminated pursuant to Sections 13.1(a), (b), (c), (d), (e),
      (f) or (g) (in each such case, such return shall be authorized and
      completed as soon as practicably possible after the occurrence of such
      termination), or (iii) be paid to Sellers in the event that this Agreement
      is terminated by Sellers pursuant to Section 13.1(h).

                                   ARTICLE IV
                               CLOSING DELIVERIES

      4.1 Closing Deliveries of Sellers. On the Closing Date, in exchange for
the payment of the Purchase Price, each of the Sellers, as applicable, shall
execute and deliver the following to Buyer:

            (a) a certificate evidencing resolutions of the Board of Directors
      (or commensurate authority) of each of the Sellers, certified by the
      Secretary or other appropriate officer or agent of such Seller, duly
      authorizing the execution, delivery and performance of this Agreement and
      the other transaction documents;

            (b) a counterpart executed by Seller of the Protocol of Delivery and
      Acceptance confirming the date and time of delivery of the Subject Assets
      from the Seller to Buyer;

            (c) one or more bills of sale in the form of Exhibit C hereto;

            (d) a certified copy of the Approval Order;

            (e) an affidavit of non-foreign status that complies with Section
      1445 of the Code (acknowledging and certifying that the transactions
      contemplated hereby are exempt from withholding under such section of the
      Code); and

            (f) and such other instruments of transfer in a form and substance
      satisfactory to Buyer (or its designated Affiliate) necessary to transfer
      and vest in Buyer (or its designated Affiliate) all of the Sellers' right,
      title and interest in and to the Subject Assets in accordance with the
      terms of this Agreement.

                                       9
<PAGE>

      4.2 Closing Deliveries of Buyer. On the Closing Date, in exchange for the
transfer, assignment, conveyance and delivery of Subject Assets by Sellers to
Buyer, Buyer shall execute and deliver the following to Sellers:

            (a) a certificate evidencing resolutions (or commensurate authority)
      of the Board of Directors of Buyer, certified by the Secretary or other
      appropriate officer or agent of Buyer, duly authorizing the execution,
      delivery and performance of this Agreement and the other transaction
      documents;

            (b) an amount equal to (i) the Purchase Price less the Security
      Deposit plus any interest or other amounts accrued thereon, payable by
      wire transfer to an account specified in writing by Sellers; and

            (c) a counterpart executed by Buyer of the Protocol of Delivery and
      Acceptance confirming the date and time of delivery of the Subject Assets
      from Seller to Buyer.

                                   ARTICLE V
                            REPRESENTATIONS OF BUYER

            Buyer hereby represents and warrants to Sellers that:

      5.1 Organization, Power and Status of Buyer. Buyer is an entity duly
formed, validly existing and in good standing under the laws of the State of
Louisiana.

      5.2 Authorization, Enforceability, Execution and Delivery. Buyer has all
necessary corporate power and authority to execute, deliver and perform its
obligations under this Agreement and each other related document to which it is
a party. The execution, delivery and performance by Buyer of this Agreement have
been duly authorized by all necessary corporate action on behalf of Buyer. This
Agreement has been duly executed and delivered by Buyer and (assuming the due
authorization, execution and delivery by the other parties hereto and thereto)
this Agreement and each such other document related to this Agreement to which
Buyer is a party constitute legal, valid and binding obligations, enforceable
against it in accordance with their terms, except as such enforceability (i) may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium and
other similar laws affecting the enforcement of creditors' rights and remedies
generally and (ii) is subject to general principles of equity (regardless of
whether enforceability is considered in a proceeding in equity or at law).

      5.3 No Conflicts; Laws and Consents; No Default.

            (a) Neither the execution, delivery and performance of this
      Agreement nor the consummation of the Transaction nor performance of or
      compliance with the terms and conditions hereof will conflict with, or
      result in any violation of or default (with or without notice or lapse of
      time, or both) under, or give rise to any increased, additional,
      accelerated or guaranteed rights or entitlements of any Person under, or
      result in the creation of any Liens upon of the Subject Assets under any
      provision of (i) any Law applicable to Buyer or (ii) any document to which
      Buyer is a party, except for any such

                                       10
<PAGE>

      conflict, violation, default, rights or entitlements that would not have a
      material adverse effect upon Buyer's ability to perform its obligations
      under this Agreement.

            (b) No consent, waiver, approval, order, permit or authorization of,
      or declaration or filing with, or notification to, any Person or
      Governmental Authority is required on the part of Buyer in connection with
      the execution and delivery of this Agreement or the consummation of the
      Transaction or the compliance by Buyer with any of the provisions hereof,
      except for such consents, waivers, approvals, orders, permits or
      authorizations, declarations, filings or notifications that the failure to
      obtain or make would not, individually or in the aggregate, have a
      material adverse effect on the ability of Buyer to consummate the
      transactions contemplated by this Agreement.

      5.4 Financing. Buyer has on the date hereof and will have sufficient
available funds to pay the Purchase Price in cash at Closing in accordance with
Section 4.2 hereof, and all fees and expenses required to be paid by Buyer in
connection with the Transaction. Buyer's obligations to make any payments under
this Agreement shall not be subject to receipt of new financing by Buyer.

      5.5 Removal of Subject Assets. Buyer acknowledges that the Subject Assets
have been removed from the M/V Midnight Hunter, and are currently not in service
or operation. Buyer acknowledges that such removal and the fact that the Subject
Assets are not in service or operation does not in any way constitute a Material
Adverse Effect.

                                   ARTICLE VI
                           REPRESENTATIONS OF SELLERS

            Sellers, jointly and severally, hereby represent and warrant to
Buyer that:

      6.1 Organization, Power and Status of Seller. Each Seller is (i) a legal
entity duly formed, validly existing and in good standing under the laws of the
state of its organization or incorporation, and (ii) duly authorized, to the
extent necessary, to do business in each jurisdiction where the character of its
properties or the nature of its activities makes such qualification necessary,
except for any failure to be so qualified that would not, individually or in the
aggregate, have a Material Adverse Effect. Each Seller has all requisite
corporate power and authority to own and operate the Subject Assets.

      6.2 Authorization, Enforceability, Execution and Delivery. Each Seller has
all necessary organizational power and authority to execute and deliver and,
subject to the entry of the Approval Order, perform its obligations under this
Agreement and each other related document to which it is a party. The execution
and delivery of this Agreement and the related documents to which a Seller is a
party and the consummation of the transactions contemplated hereby and thereby
have been duly authorized by all necessary organizational action on the part of
the Sellers. This Agreement has been, and, subject to the entry of the Approval
Order, each of the related documents to which a Seller is a party will be at or
prior to the Closing, duly and validly executed and delivered by such Seller
which is a party thereto and (assuming the due authorization, execution and
delivery by the other Parties hereto and thereto and the entry of the Approval
Order) this Agreement and each such other document related to this Agreement to

                                       11
<PAGE>

which a Seller is a party constitute its legal, valid and binding obligations,
enforceable against it in accordance with their terms, except as such
enforceability (i) may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other similar laws affecting the enforcement of
creditors' rights and remedies generally, and (ii) is subject to general
principles of equity (regardless of whether enforceability is considered in a
proceeding in equity or at law).

      6.3 No Conflicts; Laws and Consents; No Default.

            (a) Subject to the entry of the Approval Order, neither the
      execution, delivery and performance of this Agreement nor the consummation
      of the Transaction nor performance of or compliance with the terms and
      conditions hereof will conflict with, or result in any violation of or
      default (with or without notice or lapse of time, or both) under, or give
      rise to or result in the creation of any Liens upon the Subject Assets
      under any provision of (i) any Law applicable to Sellers or the Subject
      Assets, (ii) any Contract or Permit to which any of the Sellers is a party
      or by which any of the Subject Assets are bound, or (iii) any Order of any
      Governmental Authority applicable to any Seller or by which any of the
      Subject Assets are bound, except for any such conflict, violation,
      default, rights or entitlements that that would not have a Material
      Adverse Effect. Each Seller is in compliance in all material respects with
      and not in default under any and all Laws applicable to such Seller and
      the Subject Assets, the terms and provisions of this Agreement or any
      other related documents to which such Seller is a party.

            (b) No consent, waiver, approval, order, permit or authorization of,
      or declaration or filing with, or notification to, any Person or
      Governmental Authority is required on the part of any Seller in connection
      with the execution and delivery of this Agreement or the consummation of
      the Transaction or the compliance by any Seller with any of the provisions
      hereof, except for compliance with the applicable requirements of the
      Approval Order or such consents, waivers, approvals, orders, permits or
      authorizations, declarations, filings or notifications that the failure to
      obtain or make would not, individually or in the aggregate, have a
      Material Adverse Effect.

      6.4 Taxes. Except as set forth in Schedule 6.4, each Seller has filed, or
caused to be filed, and shall, as of the Closing, have filed, or cause to be
filed, all material Tax Returns that are required to have been filed by it with
the appropriate Taxing Authority in any jurisdiction with respect to the Subject
Assets, and has paid, or caused to be paid, and shall, as of the Closing, have
paid, or caused to be paid, all Taxes shown to be due and payable on such Tax
Returns and all other Taxes and assessments payable by it with respect to the
Subject Assets, to the extent the same have become due and payable, but
excluding any Taxes which would not subject, either on or prior to the Closing
Date or after the Closing Date, the Subject Assets to imminent forfeiture or
sale or result in the imposition of any Lien thereon. There are no Liens for
Taxes upon the Subject Assets, except for Liens arising as a matter of Law
relating to current Taxes not yet due. None of the Sellers is a foreign person
within the meaning of Section 1445 of the Code. Each Seller will provide to
Buyer copies of any written inquiry of any Governmental Authority received since
December 31, 2001, that raises any issue which, by application of the same
principles, would reasonably be expected to affect the Tax treatment of the
Subject Assets in any taxable period (or portion thereof) ending after the
Closing Date. No power of attorney with respect to any Tax matter is currently
in force with respect to the Subject Assets that would,

                                       12
<PAGE>

in any manner, bind, obligate or restrict Buyer. None of the Sellers has
executed or entered into any agreement with, or obtained any consents or
clearances from, any Taxing Authority, or has been subject to any ruling
guidance specific to any of the Sellers, that would be binding on Buyer for any
taxable period (or portion thereof) ending after the Closing Date with respect
to the Subject Assets.

      6.5 Property; Title; Sufficiency. Sellers represent that they respectively
own and have good and marketable title to the Subject Assets and that they
shall, subject to the terms and conditions hereof, deliver at the Closing the
Subject Assets to Buyer or its designee. Since March 1, 2005, there has not been
any damage, destruction or loss, whether or not covered by insurance, with
respect to the Subject Assets and there otherwise has not been any event,
change, occurrence or circumstance that, in each case, has had or could
reasonably be expected to have a Material Adverse Effect.

      6.6 Legal Proceedings. Except as set forth on Schedule 6.6 or arising in
or related to the Bankruptcy Case, there is no Legal Proceeding filed and
pending or, to the Knowledge of any Seller, threatened against any Seller, or to
which any Seller is otherwise a party before any Governmental Authority, except
any such Legal Proceeding as could not reasonably be expected to have a Material
Adverse Effect.

      6.7 Compliance with Laws.

            (a) Except to the extent set forth in Schedule 6.7(a):

                  (i) each of the Sellers is in compliance with all Laws of any
            Governmental Authority applicable to their respective operations or
            assets (including the Subject Assets), except where such
            non-compliance could not reasonably be expected to have a Material
            Adverse Effect;

                  (ii) Sellers have not received any written or other notice of
            or been charged with the violation of any Laws that could reasonably
            be expected to have a Material Adverse Effect and, to the Knowledge
            of each Seller, there are no facts or circumstances which could
            reasonably be expected to form the basis for any such violation that
            would have a Material Adverse Effect; and

                  (iii) to the Knowledge of each Seller, none of the Sellers or
            the Subject Assets is under investigation with respect to a material
            violation of any applicable Laws, except where such violation could
            not reasonably be expected to have a Material Adverse Effect.

      6.8 Environmental Matters.

            (a) the operations of Sellers, with respect to the Subject Assets,
      are in material compliance with all applicable Environmental Laws, which
      material compliance includes obtaining, maintaining in good standing and
      complying in all material respects with all applicable Environmental
      Permits necessary to operate the Subject Assets and no action or
      proceeding is pending or, to the Knowledge of any Seller, threatened to
      revoke, modify in any material respect or terminate any such Environmental
      Permit, and, to the

                                       13
<PAGE>

      Knowledge of any Seller, no facts, circumstances or conditions currently
      exist that could reasonably be expected to adversely affect such continued
      material compliance with applicable Environmental Laws and applicable
      Environmental Permits or require material capital expenditures to achieve
      or maintain such continued material compliance with applicable
      Environmental Laws and applicable Environmental Permits;

            (b) with respect to the Subject Assets, none of the Sellers is the
      subject of any outstanding written order or Contract with any Governmental
      Authority or Person respecting (i) Environmental Laws, (ii) Remedial
      Action or (iii) any Release of a Hazardous Material, or for which a Seller
      has material, outstanding liabilities;

            (c) no claim has been filed and is pending, or to the Knowledge of
      any Seller, threatened against any Seller or the Subject Assets, alleging,
      with respect to the Subject Assets, that a Seller or any of its Subject
      Assets is in material violation of any applicable Environmental Law or any
      applicable Environmental Permit or has any material liability under any
      applicable Environmental Law;

            (d) to the Knowledge of Sellers, no facts, circumstances or
      conditions exist with respect to the Subject Assets that could reasonably
      be expected to result in Buyer incurring material Environmental Costs or
      Liabilities either before or after Closing for pre-closing events or
      conditions other than those that are generally incurred in the ordinary
      course (without material violation of applicable Environmental Law) by
      Sellers;

            (e) to the Knowledge of Sellers, there are no investigations of the
      Subject Assets pending or threatened which could reasonably be expected to
      lead to the imposition of any material Environmental Costs or Liabilities
      on the Subject Assets or material Liens under applicable Environmental Law
      on the Subject Assets;

            (f) to the Knowledge of Sellers, the Transaction contemplated
      hereunder is not one for which an applicable Environmental Law requires
      the consent of or advance filings with any Governmental Authority with
      jurisdiction over the Subject Assets and environmental matters; and

            (g) Sellers have provided to Buyer all material audits, studies,
      reports, analyses, and results of investigations of matters regulated by
      applicable Environmental Laws that have been performed since January 1,
      2003 with respect to the Subject Assets and that are in Sellers'
      possession.

      6.9 [Intentionally omitted]

                                  ARTICLE VII
                       SURVIVAL; EXCLUSION OF WARRANTIES;
                     NO ASSUMPTION OF LIABILITIES; EMPLOYEES

      7.1 Survival. The representations and warranties made by Buyer and Sellers
under this Agreement and of each Party in any certificate delivered hereunder,
respectively, shall not survive beyond the Closing Date or a termination of this
Agreement.

                                       14
<PAGE>

      7.2 Exclusion of Warranties. The Subject Assets will be sold and delivered
and taken over "AS IS, WHERE IS," on the Closing Date by Buyer without any
warranty or representation by Sellers whatsoever, express or implied, as to the
design, quality, condition, merchantability or seaworthiness, or as to the
fitness of the Subject Assets for any particular purpose or trade, and the bills
of sale referred to in Section 4.1(b) shall so provide. Except as provided in
Section 14.9, after the Closing, Sellers shall have no obligation with respect
to the Subject Assets. Buyer's execution of the Protocol of Delivery and
Acceptance shall be conclusive evidence of Buyer's acceptance of the condition
of the Subject Assets.

      7.3 No Assumption of Liabilities. Buyer will not assume, and hereby
expressly disclaims any assumption of, any Indebtedness, Liabilities or
obligations (absolute or contingent) of any kind of Sellers, including but not
limited to (i) accounts payable, (ii) Indebtedness of Sellers for money
borrowed, (iii) Taxes of Sellers or relating to ownership, use or operation of
the Subject Assets on or prior to the Closing Date, (iv) claims, litigation,
Liabilities or obligations arising out of or relating to the operations of
Sellers, (v) Liabilities or obligations of any kind in respect of any past or
present stockholders, directors, officers, employees or consultants of Sellers,
whether under any contract or agreement, pursuant to any pension plan or
employee benefit plan or welfare plan, or otherwise, (vi) Liabilities or
obligations relating to recapture or any depreciable deduction, and/or (vii) any
other Liabilities or obligations of or relating to Sellers or any of their
Affiliates or related entities in any manner whatsoever.

      7.4 No Obligation for Employees. Buyer may offer employment to any
Employee without restriction by the Sellers. Sellers shall be responsible for
any Employee who is not offered employment and for complying with any applicable
notice or other requirements of applicable Law with respect to termination of
employees and layoffs. In addition, Sellers shall be responsible for satisfying
any employee benefit obligations relating to employment of Employees on and
prior to the Closing Date. Nothing in this Section 7.4 shall be deemed to impose
upon Buyer any Liabilities or responsibilities regarding individuals who do not
become employees of Buyer pursuant to offers of employment to Employees,
including, without limitation, Liabilities or responsibilities for (i) pension,
retirement, profit-sharing, savings, medical, dental, disability income,
continuing health coverage benefits, life insurance or accidental death
benefits, whether insured or self-insured, whether funded or unfunded, (ii)
workers' compensation (both long term and short term) benefits, whether insured
or self-insured, whether or not accruing or based upon exposure to conditions
prior to the date of this Agreement or for claims incurred or for disabilities
commencing prior to the Closing Date, or (iii) severance benefits. None of the
Parties intend to create any rights or obligations for employment and no past,
present or future employees of Sellers or Buyer shall be treated as third-party
beneficiaries of this Section 7.4.

                                  ARTICLE VIII
                              CONDITIONS TO CLOSING

      8.1 Buyer's Conditions Precedent. In addition to the condition set forth
in Section 9.2 hereof, Buyer's obligation to consummate the transactions
contemplated by this Agreement, including, without limitation, to accept the
Subject Assets from Sellers and to pay the Purchase Price in accordance with
Article III of this Agreement, is subject to fulfillment on or before the
Closing Date, of each the following conditions precedent:

                                       15
<PAGE>

            (a) all consents, waivers and approvals from all Governmental
      Authorities, third parties and such other entities, as necessary for the
      consummation of the Transaction shall have been obtained and Buyer shall
      have received copies thereof;

            (b) Sellers shall have performed and complied in all respects with
      all obligations and agreements required in this Agreement to be performed
      or complied with by it prior to the Closing Date, including, without
      limitation, the transfer, conveyance, assignment and delivery to Buyer of
      the Subject Assets free and clear of all Liens (other than Permitted
      Exceptions);

            (c) Sellers' representations and warranties in Article VI of this
      Agreement that are qualified as to materiality or by the term "Material
      Adverse Effect" shall be true and correct in all respects as of the
      Closing and any such representations and warranties that are not so
      qualified shall be true and correct in all material respects as of the
      Closing as though made at and as of the Closing (or if made as of a
      specified date, only as of such date);

            (d) Sellers have completed all deliveries they are required to make
      under Section 4.1; and

            (e) there shall not be in effect any Order by a Governmental
      Authority of competent jurisdiction restraining, enjoining or otherwise
      prohibiting the consummation of the transactions contemplated hereby.

      8.2 Sellers' Conditions Precedent. In addition to the condition set forth
in Section 9.2 hereof, Sellers' obligation to consummate the transactions
contemplated by this Agreement, including, without limitation, to sell,
transfer, assign, convey and deliver the Subject Assets to Buyer at Closing is
subject to fulfillment on or before the Closing Date, of each of the following
conditions precedent:

            (a) all consents, waivers and approvals from all Governmental
      Authorities, third parties and such other entities, as necessary for the
      consummation of the Transaction shall have been obtained;

            (b) Buyer's representations and warranties in Article V of this
      Agreement that are qualified as to materiality shall be true and correct
      in all respects as of the Closing and any such representations and
      warranties that are not so qualified shall be true and correct in all
      material respects as of the Closing as though made at and as of the
      Closing (or if made as of a specified date, only as of such date);

            (c) Buyer has paid Sellers the amounts required under Sections
      4.2(b) of this Agreement; and

            (d) Buyer has made the other deliveries required under Section 4.2
      of this Agreement.

                                       16
<PAGE>

                                   ARTICLE IX
                               SELLERS' BANKRUPTCY

      9.1 Procedure for Approval of Transaction.

            (a) Filing of Appropriate Motions; Provision of Notice. On April 6,
      2005, Sellers filed with the Bankruptcy Court (i) the Sale Motion, seeking
      entry of the Approval Order and (ii) the Scheduling Motion, seeking entry
      of the Scheduling Order. Buyer agrees that it will promptly take such
      actions as are reasonably requested by Sellers to assist in obtaining the
      Approval Order, including furnishing affidavits or other documents or
      information for filing with the Bankruptcy Court for the purposes, among
      others, of providing necessary assurances of performance by Buyer under
      this Agreement and demonstrating that Buyer is a "good faith" purchaser
      under Section 363(m) of the Bankruptcy Code. In the event the entry of the
      Approval Order shall be appealed, Sellers and Buyer shall each use its
      commercially reasonable efforts to defend such appeal. Sellers shall give
      notice of the Sale Motion, Scheduling Motion and Sale Hearing as
      reasonably requested by Buyer and required by the Bankruptcy Code or
      applicable Bankruptcy Rules.

            (b) Scheduling Motion. Sellers requested the scheduling of the
      Scheduling Hearing on April 27, 2005 and such hearing was commenced on
      such date.

            (c) Sale Motion. Sellers have filed the Sale Motion seeking entry of
      the Approval Order and deadlines for filing and serving objections and
      responses to the relief requested in the Sale Motion, and as part of such
      filing Sellers requested that the Sale Hearing occur on or about June 8,
      2005.

            (d) Proposal and Submission of Approval Order. Simultaneously with
      their submission of the Sale Motion, Sellers proposed and submitted the
      Approval Order to the Bankruptcy Court for execution at the Sale Hearing,
      and such submission will be amended and modified pursuant to, and to
      reflect the terms of this Agreement on or prior to the date scheduled for
      the Sale Hearing. The amended and modified form of Approval Order shall be
      submitted to Buyer for its review (and shall be subject to its reasonable
      approval) prior to the filing of same with the Bankruptcy Court.

            (e) Cooperation. Buyer and Sellers shall cooperate in filing and
      prosecuting the Sale Motion and obtaining entry of the Approval Order.

      9.2 Condition to Closing Relating to Bankruptcy. In addition to the
conditions to Closing set forth in Sections 8.1 and 8.2 of this Agreement, the
Closing shall be subject to the satisfaction of the condition that the
Bankruptcy Court shall have entered the Approval Order, and such order shall be
a Final Order.

                                   ARTICLE X
               COVENANTS; TRANSFER OF TITLE AND DELIVERY OF ASSETS

      10.1 Covenants with Respect to Conduct Prior to Closing. During the period
from the date hereof through the Closing Date, the Sellers and Buyer covenant
and agree as follows:

                                       17
<PAGE>

            (a) Access. Each Seller agrees that, prior to the Closing Date,
      Buyer shall be entitled, through its officers, employees and
      representatives (including, without limitation, its legal advisors and
      accountants), to make such investigation of the Subject Assets and related
      properties of Sellers as it reasonably requests and deems necessary or
      appropriate for the purposes of familiarizing itself with and evaluating
      the Subject Assets or obtaining any necessary and appropriate Permits for
      the transactions contemplated by this Agreement, and the Buyer shall be
      permitted to make extracts and copies of such information. Any such
      investigation and examination shall be conducted under reasonable
      circumstances, and Sellers shall cooperate fully therein. No investigation
      by Buyer prior to or after the date of this Agreement shall diminish or
      obviate any of the representations, warranties, covenants or agreements of
      Sellers contained herein. In order that Buyer may have full opportunity to
      make such physical and diligence review, examination or investigation as
      it may reasonably request of the Subject Assets, Sellers shall cause the
      officers, employees, consultants, agents, accountants, attorneys and other
      representatives of Sellers to cooperate fully with such representatives in
      connection with such review and examination. Without limiting the
      generality of the foregoing, Buyer shall be entitled to conduct or cause
      to be conducted at or on the Subject Assets such surveys, tests and
      inspections, including, environmental inspections and tests, as Buyer
      shall deem necessary or useful in connection with its acquisition of such
      Subject Assets.

            (b) Operation of Subject Assets. Except as otherwise expressly
      provided by this Agreement or with the prior written consent of Buyer,
      Sellers shall comply in all material respects with all applicable Laws in
      regard to the Subject Assets, shall not take any action which would
      adversely affect the ability of the Parties to consummate the transactions
      contemplated by this Agreement, or enter into any transaction or enter
      into, modify or renew any Contract relating to the Subject Assets that is
      not in the ordinary course of business of Sellers after the Petition Date,
      and shall not agree to do anything prohibited by this Section 10.1(b) or
      anything that would make any of the representations and warranties of the
      Sellers in this Agreement untrue or incorrect in any material respect.

            (c) Consents. Sellers shall use their best efforts, and Buyer shall
      cooperate with Sellers, to obtain at the earliest practicable date all
      consents and approvals required to consummate the transactions
      contemplated by this Agreement.

            (d) Governmental Approvals. In addition to the matters to be
      presented to the Bankruptcy Court under Section 9.1 hereof, as promptly as
      practical after the date of this Agreement, each of the Sellers and Buyer
      shall make all filings required by applicable Law to be made by it in
      order to consummate the transactions contemplated by this Agreement. All
      documents required to be filed by any Seller with any Governmental
      Authority in connection with this Agreement or the transactions
      contemplated by this Agreement will comply in all material respects with
      the provisions of applicable Law. Each Seller and Buyer agree to cooperate
      and use their best efforts to obtain all (and will immediately prepare all
      registrations, filings and applications, requests and notices preliminary
      to obtaining all) Governmental Approvals, Orders and Permits that may be
      necessary or which may be reasonably requested by Buyer or Sellers to
      consummate the transactions contemplated by this Agreement; provided,
      however, that, notwithstanding

                                       18
<PAGE>

      anything to the contrary provided herein, neither Buyer nor any of its
      Affiliates shall be required in connection with obtaining such
      Governmental Approvals (i) to hold separate (including by trust or
      otherwise) or divest any of its businesses, product lines or assets, or
      any of the Subject Assets, (ii) to agree to any limitation on the
      operation or conduct of its business and operations or the Subject Assets,
      or (iii) to waive any of the conditions to this Agreement set forth in
      Section 8.1.

            (e) Notification of Certain Matters. Sellers shall give prompt
      written notice to Buyer of, (i) the occurrence, or failure to occur, of
      any event that would be likely to cause any representation or warranty of
      such Seller contained in this Agreement to be untrue or inaccurate in any
      material respect at any time from the date of this Agreement to the
      Closing Date, (ii) any failure of any Seller, as the case may be, to
      comply with or satisfy, in any material respect, any covenant, condition
      or agreement to be complied with or satisfied by it under this Agreement,
      (iii) the occurrence of any fact or condition after the date of this
      Agreement that would be reasonably likely to cause or constitute a breach
      of any representation or warranty had such representation or warranty been
      made at the time of the occurrence, or such Seller's discovery of, such
      fact or condition, (iv) any fact or condition of which Seller obtains
      knowledge which has had or could reasonably be expected to have or result
      in a Material Adverse Effect, and (v) the occurrence of any event that may
      make the satisfaction of the conditions set out in Article VIII impossible
      or unlikely. No such notification shall affect the representations or
      warranties of the Sellers or the conditions to their respective
      obligations hereunder.

      10.2 Transfer of Title. Title and risk of loss of or damage to the Subject
Assets will pass from Sellers to Buyer at the time appearing on the Protocol of
Delivery and Acceptance (provided for in Section 10.6) which shall be the time
of Closing.

      10.3 [Intentionally omitted].

      10.4 Notices; Time and Place of Delivery.

            (a) Sellers shall prepare the Subject Assets for delivery in due
      course and in time for the Closing, and shall keep Buyer well informed of
      the state of readiness for delivery of the Subject Assets.

            (b) Sellers shall deliver the Subject Assets at Edison Chouest
      Facility, 106 9th Street, Lot 1, Port Fourchon, LA

      10.5 [Intentionally omitted].

      10.6 Delivery Procedure. Sellers shall deliver the Subject Assets to a
duly authorized representative of Buyer who shall execute and deliver to Sellers
a "Protocol of Delivery and Acceptance" in the form attached hereto as Exhibit B
which shall evidence the delivery of the Subject Assets to Buyer.

      10.7 Spares, etc. Forwarding charges for spare parts and spare equipment,
if any, shall be for Buyer's account.

                                       19
<PAGE>

                                   ARTICLE XI
                                     TAXES

      11.1 Responsibility for Taxes.

            (a) In accordance with Section 1146(c) of the Bankruptcy Code, the
      making or delivery of any instrument of transfer, including the filing of
      any deed or other document of transfer to evidence, effectuate or perfect
      the rights, transfers and interests contemplated by this Agreement, shall
      be in connection with the Approval Order and as such shall be free and
      clear of any and all transfer Tax, stamp Tax or similar Taxes; provided,
      however, that if any such Taxes are due in connection with the
      transactions contemplated herein, Buyer, on the one hand, and Sellers, on
      the other hand, shall each pay one-half of the amount of any such Taxes
      and they shall pay such amount in a timely manner. The instruments
      transferring the Subject Assets to Buyer shall contain the following
      endorsement:

                  "Because this instrument has been authorized pursuant to an
                  Order of the United States Bankruptcy Court for the Eastern
                  District of Louisiana, in connection with a plan of
                  reorganization of the Grantor, it is exempt from transfer
                  taxes, stamp taxes or similar taxes pursuant to 11 U.S.C.
                  Section 1146(c)".

            (b) Except as otherwise provided in this Section 11.1(b), Sellers
      shall bear all property and ad valorem tax liabilities with respect to the
      Subject Assets if the Lien or assessment date arises prior to the Closing
      Date irrespective of the reporting and payment dates of such Taxes. All ad
      valorem and other real property Taxes, personal property Taxes, or ad
      valorem obligations and similar recurring Taxes and fees on the Subject
      Assets for taxable periods beginning before, and ending after, the Closing
      Date, shall be prorated between Buyer, on the one hand, and Sellers, on
      the other hand, as of 12:01 a.m., New York time, on the Closing Date. With
      respect to Taxes described in this Section 11.1(b), Seller shall timely
      file all Tax Returns due before the Closing Date with respect to such
      Taxes and Buyer shall prepare and timely file all Tax Returns due after
      the Closing Date with respect to such Taxes. If one Party remits to the
      appropriate Taxing Authority payment for Taxes, which are subject to
      proration under this Section 11.1(b) and such payment includes the other
      Party's share of such Taxes, such other party shall promptly reimburse the
      remitting party for its share of such Taxes.

      11.2 Cooperation on Tax Matters. Buyer and Sellers shall furnish or cause
to be furnished to each other, as promptly as practicable, such information and
assistance relating to the Subject Assets as is reasonably necessary for the
preparation and filing of any Tax Return, claim for refund or other required or
optional filings relating to Tax matters, for the preparation for any Tax audit,
for the preparation for any Tax protest, for the prosecution or defense of any
suit or other proceeding relating to Tax matters.

      11.3 [Intentionally omitted].

                                       20
<PAGE>

                                  ARTICLE XII
                   DISPUTE RESOLUTION; SERVICE; GOVERNING LAW

      12.1 Dispute Resolution; Service of Process; Waiver of Jury Trial.

            (a) If any dispute should arise in connection with the
      interpretation and fulfillment of this Agreement, the dispute will be
      brought in the United States Bankruptcy Court for the Eastern District of
      Louisiana or such other court as may have jurisdiction over the Bankruptcy
      Case; provided, however, that if the Bankruptcy Court refuses to accept
      jurisdiction over any such dispute, then each Party hereto hereby
      irrevocably submits to and accepts for itself and its properties,
      generally and unconditionally, the non-exclusive jurisdiction of and
      service of process pursuant to the laws of the State of New York and the
      rules of its courts, waives any defense of forum non conveniens and agrees
      to be bound by any judgment rendered thereby arising under or out of in
      respect of or in connection with this Agreement or obligation hereunder.
      Each Party further irrevocably designates and appoints the individual
      identified in or pursuant to Section 14.3 hereof to receive notices on its
      behalf, as its agent to receive on its behalf service of all process in
      any such Action before any Governmental Authority, such service being
      hereby acknowledged to be effective and binding service in every respect.
      A copy of any such process so served shall be mailed by registered mail to
      each party at its address provided in Section 14.3; provided, that unless
      otherwise provided by applicable Law, any failure to mail such copy shall
      not affect the validity of the service of such process. If any agent so
      appointed refuses to accept service, the designating party hereby agrees
      that service of process sufficient for personal jurisdiction in any action
      against it in the applicable jurisdiction may be made by registered or
      certified mail, return receipt requested, to its address provided in
      Section 14.3. Each party hereby acknowledges that such service shall be
      effective and binding in every respect. Nothing herein shall affect the
      right to serve process in any other manner permitted by Law or shall limit
      the right of any party to bring any action or proceeding against the other
      party in any other jurisdiction if the Bankruptcy Court refuses to accept
      jurisdiction. Nothing herein shall limit or otherwise affect any choice of
      Law or choice of venue made by any Seller and Buyer in any other agreement
      to which they are both a party.

            (b) THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE
      FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT THAT THEY MAY HAVE
      TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION, OR IN ANY LEGAL
      PROCEEDING, DIRECTLY OR INDIRECTLY BASED UPON OR ARISING OUT OF THIS
      AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT (WHETHER
      BASED ON CONTRACT, TORT, OR ANY OTHER THEORY). EACH PARTY (i) CERTIFIES
      THAT NO REPRESENTATIVE, AGENT, OR ATTORNEY OF ANY OTHER PARTY HAS
      REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTIES WOULD NOT, IN
      THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (ii)
      ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO
      THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
      CERTIFICATIONS IN THIS SECTION.

                                       21
<PAGE>

      12.2 Governing Law. This Agreement shall be governed by and construed in
accordance with the Bankruptcy Code and, to the extent not inconsistent with the
Bankruptcy Code, the internal laws of the State of New York, without giving
effect to any choice of law or conflicting provision or rule (whether of the
State of New York or any other jurisdiction) that would cause the laws of any
jurisdiction other than New York to be applied. In furtherance of the foregoing,
the law of the State of New York will control the interpretation and
construction of this Agreement, even if under such jurisdiction's choice of law
or conflict of laws analysis, the substantive law of some other jurisdiction
would ordinarily apply.

                                  ARTICLE XIII
                                  TERMINATION

      13.1 Termination. This Agreement may be terminated at any time at or
before the Closing (the "Termination Date"), as follows:

            (a) in writing, by mutual consent of the Parties;

            (b) at the election of Sellers, on or after June 30, 2005 if the
      Closing shall not have occurred by the close of business on such date;
      provided that Sellers are not in material default of their obligations
      hereunder; and provided further, however, that if the Closing shall not
      have occurred by the close of business on June 30, 2005 due solely to the
      failure of the Bankruptcy Court to enter the Approval Order and all other
      conditions to the obligations of Buyer to close hereunder that are capable
      of being fulfilled by June 30, 2005 shall have been so fulfilled or waived
      (other than those conditions that, by their terms, cannot be satisfied
      until Closing) or the Approval Order is stayed, then Sellers may not
      terminate this Agreement under this subsection prior to July 31, 2005;

            (c) at the election of Buyer, on or after the earlier (such earlier
      date, the "Outside Date") of:

                  (i) June 30, 2005, if the Closing has not occurred by such
            date and an Order authorizing a Competing Transaction has not been
            entered by such date; and

                  (ii) sixty (60) days after entry of an Order authorizing a
            Competing Transaction;

provided, that, in each case, Buyer is not in material default of its
obligations under this Agreement; provided, further, however, that if the
Closing shall not have occurred by June 30, 2005 due solely to the failure of
the Bankruptcy Court to enter the Approval Order (other than as a result of
Sellers' failure to prosecute the Sale Motion and/or timely pursue entry of the
Approval Order) and all other conditions to the obligations of Seller to close
hereunder that are capable of being fulfilled by June 30, 2005 shall have been
so fulfilled or waived (other than those conditions that, by their terms, cannot
be satisfied until Closing) or the Approval Order is stayed, then Buyer shall
not have the right to terminate this Agreement under clause (i) above prior to
July 31, 2005. If the Bankruptcy Court has entered an Approval Order approving
the Transaction prior to June 30, 2005, but such Order has not become a Final
Order by June 30, 2005, Buyer may not terminate this Agreement under clause (i)
above until the date that is ten

                                       22
<PAGE>

(10) Business Days after the Approval Order becomes a Final Order. If the date
for termination under this subsection (c) shall have been extended to July 31,
2005 due to the failure of the Bankruptcy Court to enter the Approval Order on
or before June 30, 2005, and the Bankruptcy Court shall then have entered the
Approval Order on or prior to July 31, 2005, then Buyer shall not be permitted
to terminate this Agreement until the later of (x) July 31, 2005 and (y) after
the date that immediately follows the date on which the Approval Order becomes a
Final Order;

            (d) by Sellers, on the one hand, or Buyer, on the other hand, if
      there shall be any applicable Law (including, without limitation, a
      nonappealable Final Order of a Governmental Authority of competent
      jurisdiction) restraining, enjoining or otherwise prohibiting the
      consummation of the Transaction;

            (e) [Intentionally omitted].

            (f) without further notice or action, by Buyer or Sellers upon the
      consummation of a Competing Transaction;

            (g) by Buyer, so long as Buyer is not then in material breach of its
      obligations under this Agreement, if there shall have been a material
      breach by any of Sellers of any representation, warranty, covenant or
      agreement of any Seller set forth in this Agreement resulting in a
      Material Adverse Effect, in each case such that the conditions set forth
      in Section 8.1 would not be satisfied and such breach (i) cannot be cured
      by the Outside Date or (ii) has not been cured within thirty (30) days of
      the date on which the applicable Seller receives written notice thereof
      from Buyer; or

            (h) by Sellers, so long as no Seller is then in material breach of
      its obligations under this Agreement, if there shall have been a material
      breach by the Buyer of any representation, warranty, covenant or agreement
      of Buyer set forth in this Agreement, in each case such that the
      conditions set forth in Section 8.2 would not be satisfied and such breach
      (i) cannot be cured by the Outside Date or (ii) has not been cured within
      thirty (30) days of the date on which the Buyer receives written notice
      thereof from Sellers.

      13.2 Procedure Upon Termination. In the event of termination and
abandonment by Buyer or Sellers, or both, pursuant to Section 13.1 hereof,
except as provided in Section 13.1(f) (in which case no notice shall be
required), written notice thereof shall forthwith be given to the other Party or
Parties, and this Agreement shall terminate, and the purchase of the Subject
Assets hereunder shall be abandoned, without further action by Buyer or Sellers.

      13.3 Effect of Termination. In the event that this Agreement is validly
terminated as provided herein, then each of the Parties shall be relieved of
their duties and obligations arising under this Agreement after the date of such
termination and such termination shall be without liability to Buyer or Sellers;
provided, however, that the rights and obligations of the Parties set forth in
Section 3.2 and this Section 13.3 shall survive any such termination and shall
be enforceable hereunder; provided, further, however, that nothing in this
Section 13.3 shall relieve Buyer or Sellers of any liability for any willful
breach of its obligations under this Agreement in any material respect.

                                       23
<PAGE>

                                  ARTICLE XIV
                            MISCELLANEOUS PROVISIONS

      14.1 Amendments and Waivers. This Agreement may be amended and any
provision hereof may be waived from time to time only by written agreement
signed by the Parties. No action taken pursuant to this Agreement, including
without limitation, any investigation by or on behalf of any Party, shall be
deemed to constitute a waiver by the Party taking such action of compliance with
any representation, warranty, covenant or agreement contained herein. The waiver
by any Party hereto of a breach of any provision of this Agreement shall not
operate or be construed as a further or continuing waiver of such breach or as a
waiver of any other or subsequent breach. No failure on the part of any party to
exercise, and no delay in exercising, any right, power or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of such
right, power or remedy by such Party preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. All remedies
hereunder are cumulative and are not exclusive of any other remedies provided by
law.

      14.2 Severability. If any provision of this Agreement is held to be in
conflict with any Law or is otherwise held to be unenforceable for any reason
whatsoever, such circumstances shall not have the effect of rendering the
provision in question inoperative or unenforceable in any other case or
circumstance, or of rendering any other provision or provisions herein contained
invalid, inoperative or unenforceable to any extent whatsoever. The invalidity
of any one or more phrases, sentences, clauses or sections of this Agreement
shall not affect the remaining portions of this Agreement, or any part thereof,
so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to any Party.

      14.3 Notices. Unless otherwise provided in this Agreement, any notice
permitted or required hereunder must be in writing and shall be deemed given (i)
when personally delivered (with confirmation of receipt), (ii) one Business Day
following the day sent by overnight delivery service (with written confirmation
of receipt), (iii) upon written confirmation of receipt after being sent by
United States registered or certified mail, postage prepaid, or (iv) when sent
by telecopy (provided that the telecopy is confirmed by written transmission),
addressed as follows:

            If to Buyer to:

            EPIC DIVERS, Inc.
            C/O Sharon Estopinol
            1841 Enterprise Drive
            Suite 200
            Harvey, LA 70058
            Telecopier: 504-340-5416

            with a copy to:

            Richard K. Leefe
            Leefe Gibbs Sullivan Dupre & Aldous

                                       24
<PAGE>

            Suite 1470
            3900 N. Causeway Blvd.
            Metairie, LA 70002
            Telecopier: 504-830-3998

            If to Sellers to:

            Torch Offshore, Inc.
            c/o David Phelps, Chief Restructuring Advisor
            Telecopier:  (877) 711-6966
            c/o Robert Fulton, Manager
            Telecopier:  (504) 367-8605
            401 Whitney Avenue, Suite 400
            Gretna, Louisiana 70056

            with a copy to:

            Bridge Associates, LLC
            c/o Anthony Schnelling
            747 3rd Avenue, Suite 32A
            New York, New York 10017
            Telecopier:  (212) 207-9294
            Raymond James & Associates
            c/o Raj Singh
            250 Park Avenue, 2nd Floor
            New York, New York 10077
            Telecopier: (212) 297-5613

            King & Spalding LLP
            c/o George B. South III
            1185 Avenue of the Americas
            New York, New York 10036
            Telecopier: (212) 556-2222

            Any purported notice by e-mail shall be without effect. All notices
required under this Agreement should specifically state that this is a "Notice
pursuant to Section 14.3 of the Torch Asset Purchase Agreement."

      14.4 Captions. The provision of a Table of Contents, the division of this
Agreement into Articles, Sections and other subdivisions and the insertion of
headings are for convenience of reference only and shall not affect or be
utilized in construing or interpreting this Agreement. All references in this
Agreement to any "Section" are to the corresponding Section of this Agreement
unless otherwise specified.

      14.5 No Partnership. Nothing herein contained shall be deemed or construed
to create a partnership or joint venture between the Parties.

                                       25
<PAGE>

      14.6 Counterparts; Delivery by Facsimile. This Agreement may be executed
in any number of counterparts and by different parties hereto on separate
counterparts, each of which shall be deemed to be an original. Such counterparts
shall constitute one and the same agreement. This Agreement, and any amendments
hereto, to the extent signed and delivered by means of a facsimile machine,
shall be treated in all manner and respects as an original Contract and shall be
considered to have the same binding legal effects as if it were the original
signed version thereof delivered in person. At the request of any party hereto
or to any such Contract, each other party hereto or thereto shall re-execute
original forms thereof and deliver them to all other parties. No party hereto or
to any such Contract shall raise the use of a facsimile machine to deliver a
signature or the fact that any signature or Contract was transmitted or
communicated through the use of a facsimile machine as a defense to the
formation of a Contract and each such party forever waives any such defense.

      14.7 General Interpretive Principles. Except as otherwise expressly
provided or unless the context otherwise requires, the defined terms in this
Agreement shall include the plural as well as the singular, and the use of any
gender herein shall be deemed to include any other gender. When calculating the
period of time before which, within which or following which any act is to be
done or step taken pursuant to this Agreement, the date that is the reference
date in calculating such period shall be excluded. If the last day of such
period is a non-Business Day, the period in question shall end on the next
succeeding Business Day. Any reference in this Agreement to $ shall mean U.S.
dollars. The Exhibits and Schedules to this Agreement are hereby incorporated
and made a part hereof and are an integral part of this Agreement. All Exhibits
and Schedules annexed hereto or referred to herein are hereby incorporated in
and made a part of this Agreement as if set forth in full herein. Any
capitalized terms used in any Schedule or Exhibit but not otherwise defined
therein shall be defined as set forth in this Agreement. The words such as
"herein," "hereinafter," "hereof," and "hereunder" refer to this Agreement as a
whole and not merely to a subdivision in which such words appear unless the
context otherwise requires. The word "including" or any variation thereof means
"including, without limitation" and shall not be construed to limit any general
statement that it follows to the specific or similar items or matters
immediately following it.

      14.8 Punitive, Consequential, and Special Damages. Under no circumstances
shall either Party be liable to the other for any punitive, consequential, or
special damages.

      14.9 Further Assurances. Sellers and Buyer agree to take all necessary
action and to deliver or cause to be delivered at Closing and at such other
times thereafter any such additional certificates, documents or instruments as
either of them may reasonably request for the purposes of carrying out this
Agreement and the transactions contemplated hereby. Without limitation of the
foregoing, from time to time following the Closing, Sellers and Buyer shall, and
shall cause their respective Affiliates to, execute, acknowledge and deliver all
such further conveyances, notices, assumptions, releases and acquaintances and
such other instruments, and shall take such further actions, as may be necessary
or appropriate to assure fully to Buyer and its respective successors or
assigns, all of the properties, rights, titles, interests, estates, remedies,
powers and privileges intended to be conveyed to Buyer under this Agreement and
to assure fully to Sellers and its successors and assigns, the assumption of the
liabilities and obligations intended to be assumed by Buyer under this
Agreement, and to otherwise make effective the transactions contemplated hereby.

                                       26
<PAGE>

      14.10 Entire Agreement. This Agreement, including any Exhibits and
Schedules attached hereto, constitutes the entire understanding and agreement
among the parties with respect to the subject matter of this Agreement, and
supersedes all prior and contemporaneous agreements and understandings,
inducements, or conditions, express or implied, oral or written, except as
contained in this Agreement. Except as specifically set forth herein, this
Agreement is not dependent upon the existence of any other agreement.

      14.11 Finders or Broker's Fees. With the exception of Sellers' financial
advisors, Raymond James & Associates and Bridge Associates, LLC, each of Buyer
(on the one hand), and Sellers (on the other hand), represents and warrants that
neither it nor any of its respective affiliates has dealt with any broker or
finder in connection with any of the transactions contemplated by this
Agreement, and no broker or other person is entitled to any commission or
finder's fee in connection with any of these transactions. Each party shall bear
the fees and expenses of its respective financial advisors.

      14.12 Binding Effect; Assignment. This Agreement shall be binding upon and
inure to the benefit of the Parties and their respective successors and
permitted assigns. Nothing in this Agreement shall create or be deemed to create
any third party beneficiary rights in any Person not a party to this Agreement.
No assignment of this Agreement or of any rights or obligations hereunder may be
made by any Seller or Buyer (by operation of law or otherwise) without the prior
written consent of the other Parties hereto and any attempted assignment without
the required consents shall be void; provided, however, that Buyer may assign
this Agreement and any or all rights or obligations hereunder (including,
without limitation, Buyer's rights to purchase the Subject Assets) to any
Affiliate of Buyer or any Person from which it has borrowed money; provided,
further, that in the event of any such assignment, Buyer shall not be relieved
of its obligations hereunder. Upon any such permitted assignment, the references
in this Agreement to Buyer shall also apply to any such assignee unless the
context otherwise requires.

      14.13 [Intentionally omitted].

                                       27
<PAGE>

            IN WITNESS WHEREOF both parties have hereunto placed their
signatures on the day and year first written above.

                                             SELLERS:

                                             TORCH OFFSHORE, INC.

                                             __________________________________
                                             Robert E. Fulton
                                             Chief Financial Officer

                                             TORCH OFFSHORE L.L.C.
                                             TORCH EXPRESS L.L.C.

                                             __________________________________
                                             Robert E. Fulton
                                             Chief Financial Officer

                                             BUYER:

                                             EPIC DIVERS, INC.

                                             __________________________________
                                             Julie Rodriguez
                                             Its:

                                       28
<PAGE>

                                  Schedule 6.4

                                      Taxes

Louisiana Department of Revenue - Q4 2004 sales tax - not yet paid

Louisiana Department of Revenue - Disputed Sales Tax amounts for 1/1/2001 to
7/31/2003

Terrebone Parish - 2004 property taxes - not yet paid

Jefferson Parish - 2004 property taxes - not yet paid

Torch Offshore, Inc. Consolidated 2004 Federal Income Tax Return - not yet filed

State of Delaware - 2004 franchise tax - partially paid

State of Louisiana - 2004 State Income Tax Return - on extension

State of Texas - 2004 property tax

Form 5500 - 401K plan - 2004

Vanuatu - 2004 tonnage tax not yet paid

Sellers have not filed any Personal Property Reports with the Parish Assessor of
either Jefferson, Plaquemines or Terrebone Parish for 2005 or any prior periods.

                                       29
<PAGE>

                                  Schedule 6.6

                                Legal Proceedings

Personal Injury: Tim Johnson v. Torch Offshore, Inc.; United States District
Court for the Eastern District of Louisiana; No. 04-1445

Petition to recognize privilege and lien: Laredo Offshore v. Tana Exploration;
32nd JDC; No. 144082

Enforcement of maritime lien for crew wages : C-Mar America, Inc. v. M/V
Midnight Wrangler, her engines, freights, tackle, apparel, etc., in rem.; USDC
TX Eastern; No. 1-04CV0792

Wrongful Death: Jamie R. Nini, et al versus Torch Offshore, Inc., et al; 17th
Judicial District; No. 97996 Div:"A"

Personal Injury: Brent Sahm versus Torch Offshore, Inc. and North American
Capacity Insurance Company; United States District Court for the Eastern
District of Louisiana; No. 04-1524 S (3)

Personal Injury: Brian Wisenbaker versus Torch, Inc.; United States District
Court for Western District of Louisiana; No. CV03-1005

Personal Injury: David Lee Pearson versus Torch Offshore, Inc.; Western District
of LA; No. CV04-1208 L-O

Personal Injury: Eric Mose vs. C-Mar America, Inc, C-Mar Services (Canada) LTD.
And Torch Offshore, Inc.; 80th Judicial District Court; No. 2004-67957

Personal Injury: Floyd Prejean versus Torch Offshore, Inc. & N. Am. ; United
States District Court for the Eastern District of Louisiana; No. 04-1871 A (1)

Personal Injury: Greg Hoy Weber versus Torch, Inc.; 38th Judicial District; No.
10-15810

Personal Injury: Ira Duplantis versus Torch Inc.; 24th Judicial District; No.
581-518 Div:"L"

Personal Injury: Jeffrey Blackmore versus Torch Offshore, Inc.; 24th Judicial
District; No. 608-655 Div:"C"

Personal Injury: John F. Dressing versus Torch Offshore, Inc.; Southern District
of Texas/Galveston Div.; No. G-04-416

Personal Injury: Joseph Newman, Jr. versus Torch, Inc. and Offshore Express,
Inc.; Western District of LA; No. CV04-1925 L-O

Personal Injury: Keith Lewis versus Torch Offshore, Inc., Abdon Callais
Offshore, LLC and Chevron U.S.A., Inc.; Civil District Court - Orleans Parish;
No. 04-03622 Div:"B"

                                       30
<PAGE>

Personal Injury: Kiras Scoot vs. Torch Offshore, Inc.; Southern District of
Texas/Galveston Div.; No. G-04-480 Admiralty

Employment Practices: Leslie M. Williams versus Torch Offshore, Incorporated;
United States District Court for the Eastern District of Louisiana; No. 04-3089
R (3)

Employment Practices: Leslie S. Legania versus Torch Offshore, Incorporated;
United States District Court for the Eastern District of Louisiana; No. 04-3088
T (5)

Personal Injury: Lewis, Jay N. versus Torch Inc., Gertias DGC Land, & K.C.
Offshore LLC; 21st Judicial Dist. Ct.; No. 90609 Div:"B"

Personal Injury: Martin Tyler vs. Torch Offshore, Inc.; 38th Judicial District;
No. 10-16659

Personal Injury: Stanley Glen Medley v. Torch, Inc.; United States District
Court for the Eastern District of Louisiana; No. 04-0021 S (1)

Personal Injury: Tim Johnson versus Torch Offshore, Inc.; United States District
Court for the Eastern District of Louisiana; No. 04-1445 S (5)

Personal Injury: Timothy Walker v. Torch, Inc.; United States District Court for
the Eastern District of Louisiana; No. 04-0701 C (2)

Personal Injury: Wayne Davis v. Torch Offshore, Inc.; Southern District of
Texas/Galveston Div.; No. G-04-401 Admiralty

Personal Injury: Terrence Jordan versus Torch Offshore, Inc.; United States
District Court for the Eastern District of Louisiana; No. 04-0344

Personal Injury: Christopher Reed v. Torch Offshore, Inc.; Southern District,
TX; No. G-03-891

Shareholder suit: Karl L. Kapps, et. al. v. Torch Offshore, Inc., et. al.;
United States District Court for the Eastern District of Louisiana; No.
02-00582;    03-30227 (appeal)

Damages for additional work: Torch Offshore Inc. v. Newfield Exploration
Company; United States District Court for the Eastern District of Louisiana; No.
03-0735 "T"

Personal Injury: Jay N. Lewis v. Torch Inc., Vertis DGC Land Inc. & K.C.
Offshore, LLC; State of La Div "B"; No. 90609

Personal Injury: Keith Lewis versus Torch Offshore, Inc., Abdon Callais
Offshore, LLC and Chevron U.S.A., Inc.; State of La Div "B"; No. 2004-3622

Petition on open account: Adon Callais v. Torch Offshore, Inc.; 24th JDC; No.
611-189

Petition on open account: Redfish Rental v. Torch Offshore, Inc.; 24th JDC; No.
612-873

Petition on open account: North Bank Towing, Inc. v. Torch Offshore, Inc.;
United States District Court for the Eastern District of Louisiana; No. 04-3183

                                       31
<PAGE>

Suit for premiums due on surety bond: US Fire Ins. Co. v. Torch Offshore, Inc.;
United States District Court for the Eastern District of Louisiana; No. 04-2692

Employment Practices: EEOC Charge; NO District Office; No. 270-2004-01792

Employment Practices: EEOC Charge; NO District Office; No. 270-2004-00765

Personal Illness: Doug Benoit, et al., v. J. Ray McDermott, Inc., et al.; 58th
Judicial Dist. Court; No. A-0168572

Personal Injury: Lawrence K Ludwigsen, Michelle L Ludwigsen versus Torch
Offshore LLC, Torch Offshore Inc, Kenneth Landry, Louis Guidroz; 24th Judicial
District; No. 614-452 Div:"D"

Enforcement of lien for settlement: Tesoro v. Torch, Inc. and Torch Offshore,
LLC; United States District Court for the Eastern District of Louisiana and
Western District of Louisiana; No. 04-2304 and 04-1703

Maritime breach of contract and open account: Southland Steel & Supply Inc. v.
Torch, Inc. and Torch Offshore, LLC; United States District Court for the
Eastern District of Louisiana and Western District of Louisiana; No. 04-3007 and
04-2261

Petition on open account: Epic Divers, Inc. v. Torch, Inc. and Torch Offshore,
Inc.; 24th JDC; No. 614-097

Breach of contract charter: Cable Shipping, Inc. v. Torch Offshore, LLC and
Torch Offshore, Inc.; United States District Court for the Eastern District of
Louisiana; No. 04-CV 3465

Petition to enforce maritime lien for crew charges: C-Mar America, Inc. and
C-Mar Limited versus M/V Midnight Wrangler, M/V Midnight Express, and M/V
Midnight Eagle; United States District Court for the Eastern District of
Louisiana; No. 04-3466

Intervening Plaintiff to enforce maritime liens: Bender Shipbuilding & Repair
Co. versus M/V Midnight Wrangler, M/V Midnight Express, and M/V Midnight Eagle;
United States District Court for the Eastern District of Louisiana; No. 04-3466

Intervening Plaintiff to enforce maritime liens: Quay Marine Associates, Inc.
versus M/V Midnight Wrangler, M/V Midnight Express, and M/V Midnight Eagle;
United States District Court for the Eastern District of Louisiana; No. 04-3466

Vessel Arrest: General Electric Capital Corporation versus M/V Midnight
Wrangler, Torch Offshore, Inc., Torch Offshore, LLC, and Torch Express, LLC;
USDC TX Eastern; No. 104CV0801

Personal Injury: Michael Steven Staley vs. Torch Offshore LLC; 58th Judicial
District Court; No. A173063

                                       32
<PAGE>

Personal Injury: David Rowland v. Torch Offshore, L.L.C.; Southern District of
Texas/Galveston Div.; No. G-04-660

Personal Injury: Richard Skains vs. Torch Offshore, L.L.C.; 333rd Judicial
District Court; No. 2001-60227

Personal Injury: Steven Lloyd Prince vs. Torch Offshore, L.L.C.; 113th Judicial
District Court; No. 2004-60216

Property Damage: Tennessee Gas Pipeline Company versus Stone Energy Corporation,
Torch Offshore, LLC, and Engineering Corporation of Louisiana; 15th Judicial
District Court; No. 04-0327

Breach of contract charter: Adams Vessels (Bilbao) Limited v. Torch Offshore,
LLC; Southern District of New York ; No. 04CV9947

                                       33
<PAGE>

                                 Schedule 6.7(a)

                              Compliance with Laws

None.

                                       34
<PAGE>

                                    EXHIBIT A

                                 SUBJECT ASSETS

                               SATURATION SYSTEM:

The SAT System is comprised of the following:

TSS 2 1,000' Diving Depth, Saturation System - Complete gas reclaim and life
support equipment, 2 man bell, 6 man split system. Main chamber skid w/control
desk (65 st), two 20' containers, umbilical with basket, U boom, bell, and bell
table. No gas storage included with system.

Said Equipment being located at Edison Chouest Facility, 106 9th Street, Lot 1,
Port Fourchon, LA.

                                    DOCUMENTS

All files, documents, instruments, papers, books, reports, records, tapes,
microfilms, photographs, letters, budgets, forecasts, ledgers, journals, title
policies, customer lists, regulatory filings, operating data and plans,
technical documentation (design specifications, functional requirements,
operating instructions, logic manuals, flow charts, etc.), user documentation
(installation guides, user manuals, training materials, release notes, working
papers, etc.), marketing documentation (sales brochures, flyers, pamphlets, web
pages, etc.), and other similar materials related to the Subject Assets in each
case whether or not in electronic form.

                                       35
<PAGE>

                                    EXHIBIT B

                              FORM OF BILL OF SALE

            THIS BILL OF SALE (this "Bill of Sale") is made and delivered this
[___] day of [_______], 2005, by [Seller], a [___________________ ("Seller")]
for the benefit of EPIC Divers, Inc., a Louisiana corporation ("Buyer").
Capitalized terms used but not defined herein shall have the meanings ascribed
to such terms in the Agreement (as hereinafter defined).

            WHEREAS, Seller and Buyer have entered into that certain Asset
Purchase Agreement dated as of June [_], 2005 (the "Agreement"), the terms of
which are incorporated herein by reference, which provides, among other things,
for the sale and assignment by Seller to Buyer of the Subject Assets.

            NOW, THEREFORE, in consideration of the mutual promises contained in
the Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by Seller, and subject to the terms
and conditions of the Agreement:

            1 Seller does hereby bargain, sell, grant, assign, transfer, convey
and deliver unto Buyer, and its successors and assigns, forever, all of Seller's
right, title and interest in and to the Subject Assets TO HAVE AND TO HOLD such
Subject Assets with all appurtenances thereto, unto Buyer, and its successors
and assigns, for its use forever.

            3 This Bill of Sale shall inure to the benefit of and be binding
upon the parties thereto and their respective successors and assigns.

            4 Nothing in this Bill of Sale, express or implied, is intended to
or shall be construed to modify, expand or limit in any way the terms of the
Agreement. To the extent that any provision of this Bill of Sale conflicts or is
inconsistent with the terms of the terms of the Agreement, the Agreement shall
govern.

            5 This Bill of Sale is executed and delivered pursuant to the
Agreement.

            6 This Bill of Sale shall be governed by, and construed in
accordance with, the laws of the State of New York, as applied to contracts made
and performed entirely in such State.

            IN WITNESS WHEREOF, and intending to be legally bound hereby, Seller
has caused this Bill of Sale to be executed and delivered as of the day and year
first above written.

                                  [SELLER]

                                  By:
                                  Name:
                                  Title:

                                       36
<PAGE>

                                    EXHIBIT C

                   FORM OF PROTOCOL OF DELIVERY AND ACCEPTANCE

            Torch Offshore, Inc., Torch Offshore L.L.C., and Torch Express
L.L.C. (collectively, the "Sellers"), and EPIC Divers, Inc. ("Buyer"), each for
itself does hereby certify: that at __________ o'clock p.m. United States
Central Time on the ___ day of ___________, 2005, at ______________,
_______________, Sellers delivered that certain saturation system (the "SAT
System") to Buyer pursuant to the terms of that certain Asset Purchase Agreement
(the "Agreement") dated as of June __, 2005, by and between Sellers and Buyer,
and Buyer accepted such conveyance of title under the Agreement, now holds title
to, and acknowledges that it is in possession of the SAT System in accordance
with the terms of the Agreement.

            IN WITNESS WHEREOF, the undersigned have executed this Certificate
this ____ day of ________________, 2005.

                                  [TORCH OFFSHORE, INC./
                                  TORCH OFFSHORE L.L.C./
                                  TORCH EXPRESS, L.L.C.]

                                  BY:
                                  Name:
                                  Its:

                                  EPIC DIVERS,  INC.

                                  BY:

                                  Name:
                                  Its:

                                       37

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]