Document:

Rig Sale Agreement dated 08/08/2005

 Exhibit 10.15 
  
 RIG SALE AGREEMENT 
  
 This Rig Sale Agreement (this “Agreement”) is entered into as of the 8th day of August, 2005, by and between Hydrocarbon Capital II LLC,
a Delaware limited liability company and a wholly-owned subsidiary of Lehman Commercial Paper Inc., a New York corporation (“Seller”), and Hercules Offshore, LLC, a Delaware limited liability company (“Buyer”).

  
 WHEREAS, Seller is the owner of the Rig (as defined
below); and 
  
 WHEREAS, Buyer wishes to purchase, and
Seller wishes to sell, the Rig on the terms and conditions set forth below; 
  
 NOW, THEREFORE, for and in consideration of the premises and the mutual agreements contained herein, Buyer and Seller hereby agree as follows: 
  

	1.	DEFINITIONS 

  
 Each of the following terms shall have the meaning ascribed thereto when used throughout this Agreement and the Exhibits hereto: 
  
 “Affiliate” shall mean, with respect to one of the parties
hereto, any other company or legal entity which (i) is owned or controlled by such party, (ii) owns or controls such party, or (iii) is under common ownership or control of such party. As used in the preceding sentence, “control” shall
mean the right or ability to control more than fifty percent (50%) of the voting rights of a company or entity. 
  
 “Bill of Sale” has the meaning given to it in Article 7.2(a)(1). 
  
 “Business Day” shall mean a day on which banks are open for business in New York, New York. 
  
 “Buyer Assignee” has the meaning given to it in Article
11. 
  
 “Certificate of Acceptance” shall
mean the Certificate of Acceptance of Delivery in the form of Exhibit “A” to be delivered at the Closing in respect of the Rig. 
  
 “Claim Notice” has the meaning given to it in Article 11. 
  
 “Closing” shall mean the consummation of the purchase and sale of the Rig. 
  
 “Closing Date” shall mean the date of the Closing with
respect to the Rig in accordance with Article 7.1, provided that it shall be a Business Day. 
  
 “Closing Payment” has the meaning given to it in Article 3.3. 
  
 “Closing Time” shall mean the day and time specified as the Closing Time on the Certificate of Acceptance.

  

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 “Damages” has the meaning given to it in Article 10.1. 
  
 “De Minimis Damage” has the meaning given to it in
Article 9.2(b). 
  
 “Deposit” has the
meaning given to it in Article 3.2. 
  
 “Election
Period” has the meaning given to it in Article 10.6(a). 
  
 “Force Majeure” has the meaning given to it in Article 19.5. 
  
 “Indemnified Party” has the meaning given to it in Article 10.5. 
  
 “Indemnifying Party” has the meaning given to it in Article 10.5. 
  
 “Indemnity Payment” has the meaning given to it in Article 10.7(c). 
  
 “Interim Period” has the meaning given to it in Article
9.1(a). 
  
 “Lien” shall mean a lien,
maritime liens, mortgage, security interest, pledge or other charge or encumbrance, including, without limitation, a charter or drilling contract (or similar arrangement), or any other debts and claims whatsoever. 
  
 “Outside Date” has the meaning given to it in Article
7.1. 
  
 “Partial Loss” has the meaning given
to it in Article 9.2(a). 
  
 “Permitted
Assignment” has the meaning given to it in Article 11. 
  
 “Recouped Amount” has the meaning given to it in Article 10.7(c). 
  
 “Repair Work” has the meaning given to it in Article 9.2(a)(1) 
  
 “Rig” shall mean that certain self-elevating offshore mobile drilling unit known as the Odin Spirit (ex
“Bohai 6”), being of Panamanian registry, Patente No. 29392-PEXT-1, together with its respective engines, tackle, winches, cordage, general outfit, drilling equipment, electronic and navigation equipment, radio installations,
appurtenances, appliances, inventory, spare or replacement parts, stores, tools and provisions designated for the Rig, whether on board or ashore. The Rig shall not include any item which is listed on Exhibit “B”. 
  
 “Sale Price” has the meaning given to it in Article
3.1. 
  
 “Taxes” means any tax, fee, levy,
duty or charge, including income, capital gains, sales, value added, transfer, customs, stamp, registration and any other tax, fee, levy, duty or charge, that is assessed by any country or any other governmental authority and any fines, penalties or
interest with respect to the foregoing tax, fee, levy, duty or charge; provided however, that it shall not include any of the foregoing which arise as a result of the sale and/or transfer of the Rig pursuant to this Agreement.

  

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 “Third-Party Claim” has the meaning given to it in Article 10.6. 
  
 “Total Loss” has the meaning given to it in Article
9.1(a). 
  

	2.	SALE AND PURCHASE 

  
 Seller hereby agrees to sell the Rig to Buyer, and Buyer hereby agrees to purchase the Rig from Seller, upon the terms and conditions set forth in this
Agreement. 
  

	3.	CONSIDERATION 

  
 3.1 Subject to the terms hereof, the aggregate purchase price (the “Sale Price”) to be paid by Buyer to Seller for the Rig is Twelve
Million Five Hundred Thousand United States Dollars (US$12,500,000); plus (x) an amount equal to all expenditures for capital improvements to the Rig paid by Seller after June 16, 2005 and prior to the Closing; provided, however, that Buyer shall
have approved all such expenditures made after the date hereof and that the capital improvements relating to such expenditures are reflected on the scope of work, attached as Exhibit “C” to this Agreement. 
  
 3.2 Buyer has, prior to the date hereof, deposited with Seller Two Hundred
and Fifty Thousand United States Dollars (US$250,000) as a deposit (the “Deposit”), which amount will be applied at the Closing as partial payment of the Sale Price. The Deposit will be returned to Buyer in the event (i) this
Agreement is terminated based on a breach of any representation, warranty or covenant of Seller contained herein, (ii) the Closing has not occurred on or before October 1, 2005 due to the actions of Seller or (iii) this Agreement is terminated
pursuant to Article 9.1(a). Seller will retain the Deposit as Seller’s sole and exclusive remedy in the event (i) this Agreement is terminated based on a breach of any representation, warranty or covenant by Buyer contained herein or
(ii) the Closing has not occurred on or before October 1, 2005; provided that the failure of the Closing to occur is not a result of the actions of Seller. 
  
 3.3 At the Closing and subject to any applicable Sale Price reduction pursuant to Article 9.2 and the other provisions of this Agreement, (i) the
Deposit shall be applied against the Sale Price and (ii) Buyer shall pay the balance of the Sale Price to Seller (the “Closing Payment”) pursuant to Article 3.4. 
  
 3.4 All payments to Seller hereunder are to be made in United States Dollars in immediately available funds wired to the
following bank account: 
  
 Citibank., N.A. 
 Fed ABA # 021-000-089 
 Account number: 40615659 
 Ref Edward O’Connell 
  

	4.	REPRESENTATIONS AND WARRANTIES 

  
 4.1 Disclaimer of Other Warranties. Except as may be otherwise expressly stated in this Agreement, Buyer hereby acknowledges that the sale and
purchase of the Rig is on an “AS IS, WHERE IS AND WITH ALL FAULTS” basis, and that this sale and purchase of the Rig is 

  

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WITHOUT ANY REPRESENTATION, WARRANTY, GUARANTY OR CONDITION, EXPRESSED OR IMPLIED, BY SELLER, AND THAT SELLER DOES NOT MAKE ANY WARRANTY, GUARANTY, OR
REPRESENTATION OF ANY KIND, EITHER EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, WITH REGARD TO THE RIG, INCLUDING, BUT NOT LIMITED TO, AS TO SEAWORTHINESS, CLASSIFICATION, VALUE, DESIGN, OPERATION, MERCHANTABILITY, FITNESS FOR USE OR PARTICULAR
PURPOSE OF THE RIG OR AS TO THE ELIGIBILITY OF THE RIG FOR ANY PARTICULAR TRADE OR CLASSIFICATION, AND BUYER HEREBY WAIVES AS AGAINST SELLER AND ITS AFFILIATES ALL WARRANTIES OR REMEDIES OR LIABILITIES WITH RESPECT TO SUCH WARRANTIES, ARISING BY LAW
OR OTHERWISE WITH RESPECT TO THE RIG. As between Seller and Buyer, the execution by Buyer of the Certificate of Acceptance shall be conclusive proof that the Rig is in full and complete compliance with all requirements of this Agreement other than
as stated in this Agreement. 
  
 4.2 Buyer’s
Representations. Buyer hereby represents, covenants and warrants to Seller the following: 
  
 (a) All necessary limited liability company action of Buyer has been taken duly to authorize the transactions contemplated by this Agreement, and upon execution and delivery of this Agreement by Buyer, this Agreement
will constitute the valid, legal and binding obligations of Buyer, enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, reorganization, moratorium and similar laws, as well as principles of equity; 

 
 (b) Buyer is duly formed and validly existing under the laws of its state
of organization and has full legal right, power and authority to enter into this Agreement and to perform its obligations hereunder; 
  
 (c) Buyer has completed its inspection of the Rig as of the date hereof, including the Rig’s documentation, and is satisfied with the results
thereof; and 
  
 (d) The execution or delivery of this Agreement
and completion of all transactions contemplated hereby, will not either now, or after notice or lapse of time, or both: 
  
 1. conflict with, violate, result in a breach or right of termination or acceleration under or require any consent or authorization under
any of the terms, conditions or provisions of any mortgage, indenture, agreement, loan, guarantee, note, bond, permit, license, lease, grant, patent, or other undertaking or authorization, written or oral, to or by which Buyer is a party or is
bound; 
  
 2. conflict with, result in a breach
of or require any consent under any of the terms, conditions or provisions of Buyer’s certificate of formation, limited liability company agreement or equivalent governing instruments; or 
  
 3. result in a violation by Buyer of any judgment, decree,
order (including an executive order), award, writ, injunction or decree applicable to, or binding upon, Buyer. 
  

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 4.3 Seller’s Representations. Seller hereby represents, covenants and warrants to Buyer the
following: 
  
 (a) Seller is the legal and beneficial owner of,
and has good and marketable title to, the Rig, free and clear of all Liens; 
  
 (b) At Closing, the Rig will be free of Liens; 
  
 (c) All necessary limited liability company action of Seller has been taken, or will be duly taken prior to Closing, to authorize the transactions contemplated by this Agreement, and upon execution and delivery of
this Agreement by Seller, this Agreement will constitute the valid, legal and binding obligations of Seller, enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, reorganization, moratorium and similar laws, as
well as principles of equity; 
  
 (d) Seller is duly formed and
validly existing under the laws of its state of organization and has full legal right, power and authority to enter into this Agreement, and to perform its obligations hereunder; 
  
 (e) No Taxes, duties, or customs for import or export duties on the Rig are outstanding; 
  
 (f) Other than Bassoe Offshore, Seller has not, directly or indirectly,
employed any broker, finder or intermediary that might be entitled to any brokerage, finders’ or similar fee or commission in connection with the transactions contemplated by this Agreement; and 
  
 (g) The execution or delivery of this Agreement and completion of all
transactions contemplated hereby, will not either now, or after notice or lapse of time, or both: 
  
 1. 1, conflict with, violate, result in a breach or right of termination or acceleration under or require any consent or authorization
under any of the terms, conditions or provisions of any. mortgage, indenture, agreement, loan, guarantee, note, bond, permit, license, lease, grant, patent, or other undertaking or authorization, written or oral, to or by which Seller is a party or
is bound; 
  
 2. conflict with, result in a
breach of or require any consent under any of the terms, conditions or provisions of Seller’s certificate of formation, limited liability company agreement or equivalent governing instruments; or 
  
 3. result in a violation by Seller of any judgment, decree,
order (including an executive order), award, writ, injunction or decree applicable to, or binding upon, Seller. 
  
 4.4 Survival. 
  
 All representations and warranties contained in this Agreement shall survive the Closing, provided that no representation or warranty of
either Seller or Buyer shall be valid after one year following the Closing, except in the case of fraud in which case such a representation or warranty shall survive for two years. 
  

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	5.	CERTAIN COVENANTS 

  
 5.1 Seller’s Covenants. Seller covenants and agrees as follows: 
  
 (a) Seller agrees to cooperate, and to cause its Affiliates to cooperate, with Buyer to effect an orderly transition of the
ownership of the Rig to Buyer. Seller will comply in all material respects with applicable laws regarding the ownership, operation and use of the Rig. Seller will not, without the prior written consent of Buyer: (i) mortgage, pledge or subject to a
Lien, or permit any Lien to be created against, the Rig; (ii) sell, transfer, assign, license or otherwise dispose of, or agree to sell, transfer, assign, license or dispose of, the Rig or any part thereof, including any equipment, parts, spares or
replacements; (iii) fail to keep in full force and effect the currently existing insurance coverage, or substantially equivalent insurance coverage, on the Rig through the Closing Time, provided that Force Majeure does not render impossible such
coverage; (iv) enter into any new drilling contract or charter (or similar arrangement) in respect of the Rig; or (v) commit to do any of the foregoing. 
  
 (b) Seller shall promptly notify Buyer of the occurrence of (i) any material dispute or proceeding between Seller and any governmental agency or authority
or any other person or entity related to the operation, use or ownership of the Rig, (ii) any accident or damage to the Rig, or (iii) any other event or condition which would make any representation or warranty made by Seller or Buyer not true and
correct in any material respect, or which would make any agreement or covenant required to be performed by Seller incapable of being performed in any material respect, or which would cause a condition to Seller’s obligations to close not to be
satisfied. 
  
 5.2 Buyer’s Covenants. 
  
 Buyer covenants and agrees that Buyer shall promptly notify
Seller of the occurrence of any event or condition which would make any representation or warranty made by Buyer or Seller not true and correct in any material respect, or which would make any agreement or covenant required to be performed by Buyer
incapable of being performed in any material respect, or which would cause a condition to Buyer’s obligations to close not to be satisfied. 
  

	6.	CONDITIONS PRECEDENT 

  
 6.1 Buyer’s Conditions Precedent. The obligations of Buyer to consummate the transactions to be performed by it in connection with the Closing
are, in all respects, subject to satisfaction, or waiver by Buyer, of the below-listed conditions precedent: 
  
 (a) The Rig shall be safely jacked-up in the waters offshore of Singapore and shall be free from Liens; 
  
 (b) The representations and warranties of Seller set forth in Article
4.3 shall be true and correct in all material respects as of the Closing Date with the same force and effect as if such representations and warranties had been made on and as of the Closing Date, and Seller shall have performed in all material
respects the covenants and agreements of Seller contained herein that are required to be performed by Seller at or prior to the Closing; 
  

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 (c) All of the items described in Article 7.2(a) shall have been delivered by Seller to Buyer; and

  
 (d) Any necessary third party authorization, license, consent
or approval of the transactions contemplated hereby under relevant laws regarding the ownership, operation and use of the Rig shall have been obtained. 
  
 6.2 Seller’s Conditions Precedent. The obligations of Seller to consummate the transactions to be performed by it in connection with the
Closing are, in all respects, subject to satisfaction, or waiver by Seller, of the below-listed conditions precedent: 
  
 (a) The representations and warranties of Buyer set forth in Article 4.2 shall be true and correct in all material respects as of the Closing Date
with the same force and effect as if such representations and warranties had been made on and as of the Closing Date, and Buyer shall have performed in all material respects the covenants and agreements of Buyer contained herein that are required to
be performed by Buyer at or prior to the Closing; 
  
 (b) Any
necessary third party authorization, license, consent or approval of the transactions contemplated hereby under relevant laws regarding the ownership, operation and use of the Rig shall have been obtained; and 
  
 (c) All of the items described in Article 7.2(b) shall have been
delivered by Buyer to Seller. 
  

	7.	CLOSING 

  
 7.1 Closing. Subject to the other terms and conditions of this Agreement, Seller shall sell and Buyer shall purchase the Rig, and the Closing shall
be held at 9 a.m., local time at the offices of Baker Botts L.L.P, 910 Louisiana Street, Houston, Texas 77002, or at such other place as is mutually agreed to by Buyer and Seller. The Closing shall take place three (3) Business Days after the
satisfaction or appropriate waiver of all of the closing conditions set forth in Article 6 but in any event not later than October 1, 2005 (“Outside Date”); provided that, subject to the provisions of Article 9, if a
Partial Loss (as defined therein) has occurred with respect to the Rig and Seller has elected to make repairs pursuant to Article 9.2, the Closing shall take place on the third Business Day following the date of completion of the pertinent
repairs. In the event the Closing has not occurred by the Outside Date or the date described in the preceding sentence regarding repairs, Seller or Buyer may terminate this Agreement by providing notice to the other; provided, that such termination
shall be without prejudice and in no way affect, or act as a bar to or wavier of, any rights which any party may have hereunder; and provided further, that the party attempting to terminate this Agreement may not he in breach of any of its material
representations, warranties, covenants or agreements contained herein. 
  
 7.2 Documents to be Delivered by Seller and Buyer. On the Closing Date, representatives of Seller and Buyer shall meet as contemplated above for the purpose of completing the sale and purchase of the Rig. 
  

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 (a) Seller’s Deliveries. Simultaneously with Buyer’s delivery of the Closing Payment as
described in Article 7.2(b)(1) below, Seller shall deliver to Buyer the following with respect to the Rig: 
  
 1. A notarized bill of sale for the Rig in a form acceptable to the Panamanian Registry and substantially in the form attached hereto as
Exhibit “D” (the “Bill of Sale”). 
  
 2. Any technical or regulatory documentation pertaining to the Rig which Seller may have in its possession and which is not already aboard the Rig, including, without limitation, DNV certificates, loadline
certificates, radio licenses, operating manuals and engineering drawings; provided, however, that Seller does not represent that it has in its possession any such documentation, does not represent that any documentation that Seller does have is
current, valid or correct, and does not represent that the Rig is capable of obtaining any needed documentation. Buyer shall also be entitled to retain a hard copy of the Rig’s preventive maintenance records, provided that this documentation
may be provided to Buyer onboard the Rig. 
  
 3.
A certified copy of the resolutions of Seller’s managers authorizing the sale of the Rig for the Sale Price and the other transactions contemplated herein and authorizing the issuance of a power of attorney in favor of Seller’s
representatives and authorizing such representative(s) to sign all necessary documents relating to such transactions. 
  
 4. A fax copy or original of a Transcript of Registry dated on the Closing Date showing the Rig to be free from registered Liens or other
registered encumbrances. 
  
 (b) Buyer’s Deliveries.
Simultaneously with delivery of the Rig as contemplated herein and the items set forth in Article 7.2(a) above, Buyer shall: 
  
 1. Pay and deliver to Seller in full and free of bank charges the Closing Payment. 
  
 2. Deliver a certified copy of the resolutions of the
Buyer’s Board of Managers authorizing the purchase of the Rig for the Sale Price and the other transactions contemplated herein and authorizing the issuance of a power of attorney in favor of the representatives of Buyer and authorizing such
representative(s) to sign all necessary documents relating to such transactions. 
  
 (c) Other Actions to be taken at Closing. 
  
 At Closing Seller and Buyer shall execute and deliver the Certificate of Acceptance as contemplated in Article 8 below in a form
acceptable to the Panamanian Registry and substantially in the form thereof attached hereto as Exhibit “A”. 
  

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	8.	DELIVERY 

  
 Concurrently with the delivery of the Bill of Sale, (i) Seller shall deliver to Buyer, and Buyer shall accept from Seller, the Rig free from Liens, and
(ii) each party shall acknowledge such delivery and acceptance by executing and delivering the Certificate of Acceptance. The Rig shall be delivered at its then current location in the offshore waters of Singapore, safely jacked-up, it being
understood that any shore based items shall be delivered in their current on-shore location in Singapore. The risk of loss of, and title to, the Rig, shall pass to Buyer as of the Closing Time. In respect of that property, if any, forming part of
the Rig which does not fall within the Bill of Sale, Seller and Buyer hereby agree that title shall be deemed to pass to Buyer as of the Closing Time without further documentation or action by either party. 
  

	9.	INTERIM PERIOD 

  
 9.1 Total Loss. 
  
 (a) If during the period between the date hereof and the Closing Time (the “Interim Period”), there is an actual total casualty loss,
constructive total casualty loss or compromised total casualty loss (collectively, a “Total Loss”) of the Rig, Seller shall provide written notice to Buyer of such Total Loss. In such event, this Agreement shall terminate entirely
upon written notice from Buyer to Seller electing to terminate, which notice must be delivered to Seller by 5:00 p.m., Houston, Texas time, on the fifth Business Day after Seller has notified Buyer of such Total Loss; or 
  
 (b) If during the Interim Period, there is a Total Loss of the Rig, and if
Buyer or Seller has elected to terminate this Agreement in accordance with Article 9.1(a), then this Agreement shall immediately terminate and Seller shall pay the Deposit to Buyer pursuant to Article 3.2, which shall be Seller’s
sole obligation, and neither Buyer nor Seller shall have any further obligations or rights under this Agreement. 
  
 9.2 Partial Loss. 
  
 (a) If, during the Interim Period, the Rig suffers loss or damage which is not a Total Loss (a “Partial Loss”), then the terms of this
Article 9.2 shall apply. In such event, Seller shall provide written notice to Buyer of such Partial Loss and: 
  
 1. Seller shall either (i) perform the work necessary to cause the Rig to meet the Inspection Condition (the “Repair
Work”) at Seller’s sole expense, or (ii) notify Buyer that Seller does not intend to perform the Repair Work, in which case the provisions of Articles 9.2(a)(2) and (3) shall apply; 
  
 2. If Seller cannot complete the Repair Work prior to the
Outside Date or if Seller notifies Buyer that it does not intend to perform the Repair Work, and the parties are able to agree in writing on the costs of such Repair Work not completed by the Outside Date, or some other acceptable Sale Price
reduction, within 15 Business Days of Buyer’s receipt of notice pursuant to this Article 9.2(a), then the Sale Price shall be reduced by such agreed amount; or 
  

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 3. If Seller cannot complete the Repair Work prior to the Outside Date or. if Seller
notifies Buyer that it does not intend to perform such Repair Work, and the parties are unable to agree in writing on the costs of the Repair Work or other acceptable Sale Price reduction within the time period specified in Article 9.2(a)(2),
then the Rig shall be treated as having suffered a Total Loss and the provisions of Article 9.1 shall apply. 
  
 (b) The parties agree that a partial loss or damage which would reasonably be expected to cost less than One Hundred Twenty-Five Thousand United States
Dollars (US$125,000) to repair (“De Minimis Damage”) shall not be considered a Partial Loss and shall not require any correction or remediation on the part of Seller hereunder, whether pursuant to Article 9, or otherwise.

  

	10.	INDEMNITY AND LIABILITY 

  
 10.1 Buyer’s Personnel and Property. Buyer shall defend, release, indemnify and hold harmless Seller, its Affiliates, subcontractors and the
respective officers, directors, agents, and employees of any of the foregoing, from and against all liens, claims, demands, causes of action, liability, damages, costs, expenses or losses (including, but not limited to, attorneys’ fees)
(collectively, “Damages”) attributable to, or for or on account of, injury to or illness or death of employees, invitees and/or agents of Buyer and its Affiliates and subcontractors, or loss of or damage to property of Buyer, its
Affiliates and subcontractors (including the Rig on or after the Closing Time) which arise from, are incident to or result directly or indirectly from the presence of employees, subcontractors, invitees and/or agents of Buyer or its Affiliates on
the Rig. 
  
 10.2 Seller’s Personnel and Property.
Seller shall defend, release, indemnify and hold harmless Buyer, its Affiliates, subcontractors and the respective officers, directors, employees and agents of any of the foregoing, from and against all Damages attributable to, or for or on account
of, injury to or illness or death of employees, invitees and/or agents of Seller, its Affiliates and subcontractors or loss of or damage to property of Seller or its Affiliates (including the Rig prior to the Closing Time), and subcontractors which
arise from, are incident to or result directly or indirectly from the presence of employees, subcontractors, invitees and/or agents of Seller or its Affiliates on the Rig. 
  
 10.3 Seller’s Other Indemnities. Subject to Articles 4.4, 10.1 and 10.2 above, and the other
provisions of this Agreement, Seller shall release, indemnify, defend and hold Buyer harmless from and against any Damages arising out of or in connection with: 
  

(a) the Rig or the operation of the Rig, to the extent the alleged event giving rise to such claim occurred prior to the Closing Time; 
  
 (b) any breach of any of the representations or warranties made by Sellers in
Article 4.3 or any breach by Seller of any of the covenants or agreements set forth in this Agreement. It is understood and agreed that the maximum aggregate amount of all indemnity payments by Seller and related to the Rig under this
Article 10.3(b) shall not exceed the Sale Price and that no indemnity payments will be due under this Article 10.3(b) in respect of the first One Hundred Thousand United States Dollars (US$100,000) of Damages suffered by the parties
otherwise entitled to indemnity under this Article 10.3(b). 
  

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 10.4 Buyer’s Other Indemnities. Subject to Articles 4.4, 10.1 and 10.2 above,
and the other provision of this Agreement, Buyer shall release, indemnify, defend and hold Seller harmless from and against any Damages arising out of or in connection with: 
  
 (a) the Rig or the operation of the Rig, to the extent the alleged event giving rise to such claim occurred at or after the
Closing Time; 
  
 (b) any breach of any of the representations or
warranties made by Buyer in Article 4.2 or any breach by Buyer of any of the covenants or agreements set forth in this Agreement. It is understood and agreed that the maximum aggregate amount of all indemnity payments by Buyer and related to
the Rig under this Article 10.4(b) shall not exceed the Sale Price and that no indemnity payments will be due under this Article 10.4(b) in respect of the first One Hundred Thousand United States Dollars (US$100,000) of Damages
suffered by the parties otherwise entitled to indemnity under this Article 10.4(b). 
  
 10.5 Indemnification Notices. If any party claiming indemnification (an “Indemnified Party”) is seeking indemnification under this Agreement from a party owing a duty of indemnification
hereunder (the “Indemnifying Party”), the Indemnified Party must give written notice of the claim to the Indemnifying Party describing in reasonable detail the nature of the claim, an estimate of the Damages attributable to the
claim (which estimate will not be conclusive or binding) and the basis for the Indemnified Party’s request for indemnification hereunder. If the Indemnifying Party does not respond within a 30 calendar day period, the Indemnifying Party will be
deemed to have rejected such claim in which event the Indemnified Party will be free to pursue such remedies as may be available to the Indemnified Party under this Agreement and applicable law. 
  
 10.6 Third Party Claims. All claims for indemnification under this
Agreement with respect to Damages claimed or asserted by a third party against an Indemnified Party (that third-party claim or assertion, a “Third-Party Claim”) shall be asserted and resolved as this Article 10.6 provides.

  
 (a) An Indemnified Party claiming indemnification in respect
of a Third-Party Claim must promptly (i) notify the Indemnifying Party of any Third-Party Claim asserted against the Indemnified Party that could reasonably give rise to a right of indemnification under this Agreement and (ii) transmit to the
Indemnifying Party a notice (a “Claim Notice”) describing in reasonable detail the nature of the Third-Party Claim, an estimate of the amount of damages attributable to that claim to the extent feasible (which estimate will not be
conclusive or binding) and the basis for the Indemnified Party’s request for indemnification under this Agreement. The failure to promptly deliver a Claim Notice will not relieve the Indemnifying Party of its obligations to the Indemnified
Party with respect to the related Third-Party Claim, except to the extent that the resulting delay is materially prejudicial to the defense of that claim. Within 30 days after receipt of any Claim Notice (the “Election Period”), the
Indemnifying Party must notify the Indemnified Party (i) whether the Indemnifying Party disputes its potential liability to the Indemnified Party under this Article 10 with respect to that Third-Party Claim and (ii) if the Indemnifying Party
does not dispute its potential liability to the Indemnified Party with respect to that Third-Party Claim, whether the Indemnifying Party elects, at the sole cost and expense of the Indemnifying Party, to defend the Indemnified Party against that
Third-Party Claim. 
  

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 (b) If the Indemnifying Party does not dispute its potential liability to the Indemnified Party and
notifies the Indemnified Party within the Election Period that the Indemnifying Party elects to assume the defense of the Third-Party Claim, then the Indemnifying Party will have the right to defend, at its sole cost and expense, that Third-Party
Claim by all appropriate proceedings, which proceedings the Indemnifying Party must prosecute diligently to a final conclusion or settle at its discretion in accordance with this Article 10.6, and the Indemnified Party will furnish the
Indemnifying Party with all information in its possession with respect to that Third-Party Claim and otherwise cooperate with the Indemnifying Party in the defense of that Third-Party Claim; provided, however, that the Indemnifying Party will not
enter into any settlement with respect to any Third-Party Claim that purports to limit the activities of, or otherwise restricts in any way, any Indemnified Party or any Affiliate of any Indemnified Party without the prior consent of that
Indemnified Party (which consent shall not be unreasonably withheld). The Indemnified Party is hereby authorized, at the sole cost and expense of the Indemnifying Party, to file, during the Election Period, any motion, answer or other pleadings that
the Indemnified Party deems necessary or appropriate to protect its interests or those of the Indemnifying Party. The Indemnified Party may participate in, but not control, any defense or settlement of any Third-Party Claim the Indemnifying Party
controls under this Article 10.6 and will bear its own costs and expenses with respect to that participation; provided, however, that if the named parties to any such action (including any impleaded parties) include both the Indemnifying
Party and the Indemnified Party, and the Indemnified Party has been advised by counsel that there may be one or more legal defenses available to it that are different from or additional to those available to the Indemnifying Party, then the
Indemnified Party may employ separate counsel at its sole cost and expense and, on its receipt of written notification of that employment, the Indemnifying Party will not have the right to assume or continue the defense of that action on behalf of
the Indemnified Party. 
  
 (c) If the Indemnifying Party (i)
within the Election Period (A) disputes its potential liability to the Indemnified Party under this Article 10, (B) elects not to defend the Indemnified Party under Article 10.6(a), or (C) fails to notify the Indemnified Party that the
Indemnifying Party elects to defend the Indemnified Party under Article 10.6(a), or (ii) elects to defend the Indemnified Party under Article 10.6(a), but fails diligently and promptly to prosecute or settle the Third-Party Claim, then
the Indemnified Party will have the right to defend, at the sole cost and expense of the Indemnifying Party (if the Indemnified Party is entitled to indemnification hereunder), the Third-Party Claim by all appropriate proceedings, which proceedings
the Indemnified Party must promptly and vigorously prosecute to a final conclusion or settle. The Indemnified Party will have full control of such defense and proceedings. Notwithstanding the foregoing, if the Indemnifying Party has delivered a
written notice to the Indemnified Party to the effect that the Indemnifying Party disputes its potential liability to the Indemnified Party under this Article 10 and if that dispute is resolved in favor of the Indemnifying Party, the
Indemnifying Party will not be required to bear the costs and expenses of the Indemnified Party’s defense under this Article 10 or of the Indemnifying Party’s participation therein at the Indemnified Party’s request, and the
Indemnified Party will reimburse the Indemnifying Party in full for all reasonable costs and expenses of that litigation. The Indemnifying Party may participate in, but not control, any defense or settlement the Indemnified Party controls under this
Article 10.6(c), and the Indemnifying Party will bear its own costs and expenses with respect to that participation. 
  

 12 

 (d) Payments of all amounts owing by an Indemnifying Party under this Article 10 relating to a
Third-Party Claim will be made within 30 days after the latest of (i) the settlement of that Third-Party Claim, (ii) the expiration of the period for appeal of a final adjudication of that Third-Party Claim or (iii) the expiration of the period for
appeal of a final adjudication of the Indemnifying Party’s liability to the Indemnified Party under this Agreement in respect of that Third-Party Claim. 
  
 10.7 General Indemnity and Liability Provisions. 
  
 (a) Application of Indemnities. All of the indemnities and allocations of risk contained in this Article 10 or elsewhere in this Agreement shall
apply notwithstanding the negligence, or gross negligence or willful misconduct (whether sole, concurrent, active or passive) of any person or party (including an Indemnified Party), or the strict liability of, liability imposed by statute on, or
other breach of obligation by, any person or party (including an Indemnified Party), or any other event of condition (excluding, in all cases, the willful misconduct of an Indemnified Party). Indemnitees shall be entitled to reasonable
attorneys’ fees incurred in asserting or enforcing the indemnities granted herein. 
  
 (b) Consequential Damages. In no event shall either Seller, on the one hand, or Buyer, on the other, be liable to the other for special, indirect or consequential damages suffered by the other party resulting
from or arising out of this Agreement, including, without limitation, loss of profit, loss of use or business interruptions, however same may be caused. The foregoing shall not affect the indemnity obligations for Third-Party Claims set forth in
this Article 10. 
  
 (c) Recouped Amount. If, after
an indemnity payment is made under this Article 10 by an Indemnifying Party (an “Indemnity Payment”) to an Indemnified Party, such Indemnified Party receives, directly or indirectly, any refund, rebate, credit, settlement or
other payment or amount from any person relating to such Indemnity Payment (a “Recouped Amount”) which was not included in the Indemnifying Party’s favor when calculating the Indemnity Payment, the Indemnified Party shall
promptly inform the Indemnifying Party and pay an amount equal to the Recouped Amount to the Indemnifying Party. In addition, if any Indemnified Party becomes aware of circumstances that could reasonably give rise to a Recouped Amount, the
Indemnified Party shall promptly so notify the Indemnifying Party. 
  

	11.	ASSIGNMENT 

  
 This Agreement may not be assigned by any party without the prior written consent of the other parties; provided, however, that Buyer shall be entitled to
assign this Agreement to an Affiliate (“Buyer Assignee”) of Buyer (“Permitted Assignment”) in the manner and under the terms set forth herein. Buyer shall notify Seller on or prior to the date of any Permitted
Assignment. In the event of the Permitted Assignment, Buyer shall remain directly responsible for all obligations of Buyer hereunder and further cause Buyer Assignee to fully comply with the terms hereof, it being the understanding and agreement of
the parties that Buyer shall in no way be relieved of any liability or responsibility hereunder. 
  

 13 

	12.	TAXES AND FEES 

  
 Seller shall bear all Taxes that relate to the ownership, operation or storage of the Rig prior to the Closing Time. Buyer shall bear (i) all Taxes that
relate to the ownership, operation or storage of the Rig after the Closing Time and (ii) all Taxes assessed on account of the sale or transfer of the Rig to Buyer. Each party shall defend, indemnify and hold the other party harmless from and against
all such Taxes for which the indemnifying party is responsible under this Article 12. Notwithstanding the foregoing, any Taxes, fees and expenses in connection with the registration under Buyer’s flag shall be for Buyer’s account,
whereas similar charges in connection with the closing of the Seller’s registry shall be for Seller’s account. 
  

	13.	CHOICE OF LAW AND JURISDICTION 

  
 The parties agree that this Agreement shall be governed by and construed in accordance with general maritime laws of the United States, and, to the extent
such maritime laws cannot be applied, the laws of the State of Texas. 
  
 Each of the parties hereto agrees that any action or proceeding brought to enforce the rights or obligations of any party hereto under this Agreement may be commenced and maintained in any court of competent jurisdiction located in the
Harris County, Texas, and that any Texas State court or federal court sitting in the Harris County, Texas shall have exclusive jurisdiction over any such action or proceeding brought by any of the parties hereto. 
  

	14.	COST OF THE TRANSACTION 

  
 Whether or not the transactions contemplated hereby shall be consummated, the parties agree that each party will pay the fees, expenses and disbursements
of such party and its agents, representatives, and counsel incurred in connection with the subject matter of this Agreement. Without limiting the generality of the foregoing, Buyer shall bear the costs incurred by it in carrying out the inspection
of the Rig. 
  

	15.	NOTICES 

  
 Any notice, demand or communication required, permitted or desired to be given hereunder must be given in writing and shall be deemed effectively given
upon receipt and shall be personally delivered, telecopied or mailed by prepaid certified mail, return receipt requested, addressed as follows: 
  

			
	Seller	  	Hydrocarbon Capital II LLC
	 	  	Attn: James P. Seery
	 	  	745 Seventh Ave.
	 	  	New York, New York 10019
	 	  	Telecopy: (646) 758-2209
		
	with a copy to	  	Lehman Commercial Paper Inc.
	 	  	Attn: J. Robert Chambers
	 	  	600 Travis Street, Suite 7200
	 	  	Houston, Texas 77002
	 	  	Telecopy: (713) 236-3912

  

 14 

			
	Buyer	  	Hercules Offshore, LLC
	 	  	Attn: Steven Manz, Chief Financial Officer
	 	  	2929 Briar Park Drive, Suite 435
	 	  	Houston, Texas 77042
	 	  	Telecopy: (713) 952-4342
		
	with a copy to	  	Baker Botts L.L.P.
	 	  	Attn: David Emmons
	 	  	2001 Ross Avenue, Suite 600
	 	  	Dallas, Texas 75201
	 	  	Telecopy: (214) 661-4414

  
 or to such other address, and to the
attention of such other person or officer, as any party may designate by notice. 
  

	16.	BROKERAGE 

  
 Each party agrees to bear its own cost related to fees or commissions of its brokers or agents and to indemnify the other from and against all loss, cost,
damage or expense (including reasonable attorneys’ fees and expenses) arising out of claims for any fees or commissions of its brokers or agents, if any, employed or alleged to have been employed in connection with the sale and purchase of the
Rig. 
  

	17.	ENTIRE AGREEMENT/AMENDMENT 

  
 This Agreement (including the exhibits and schedules hereto) supersedes (and the parties hereby terminate without recourse) all preceding oral and written
agreements, records, negotiations, reference materials and correspondence between the parties regarding the subject matter hereof, and this Agreement constitutes the entire agreement of whatsoever kind or nature existing between the parties
respecting the sale of the Rig, excluding only the provisions of the June 16, 2005 Memorandum of Understanding between Seller and Buyer under the Caption “Confidentiality”. As between the parties, no oral statements, prior correspondence,
schedules, lists, brochures, drawings or written material of any kind not specifically incorporated herein shall be of any force and effect, and shall not be relied upon by the other party. All prior representations or agreements, whether written or
verbal, not expressly incorporated herein, are superseded and may not be relied upon and no changes in or additions to this Agreement may be made by either party except in a writing signed by both parties hereto. 
  

	18.	NAME AND MARKINGS 

  
 Buyer shall ensure that the name of the Rig is changed and that any markings on the outer part of the Rig bearing the name of the Rig shall be removed or
deleted as soon as possible but not later than 120 days after the Closing Date. 
  

 15 

	19.	GENERAL 

  
 19.1 The invalidity, illegality or unenforceability of any provision or any part of any provision of this Agreement shall not affect the continuation in
force of such other part or the remainder of this Agreement. 
  
 19.2 This Agreement may be executed in any number of counterparts by the parties hereto on separate counterparts, each of which when executed and delivered shall constitute an original, but all of which shall together constitute one and the
same instrument. 
  
 19.3 The provisions of Articles 10.1
and 10.2 and any other provision which, due to their nature should reasonably be expected to survive, shall survive any termination of this Agreement. 
  
 19.4 Neither party shall be in breach of its obligations (other than its obligation to pay money) to the extent it is prevented or hindered by Force
Majeure. “Force Majeure” shall be any event of extraordinary nature which is beyond the reasonable control of a party and not reasonably foreseeable at the time of the signature of this Agreement, and shall include (but not be
limited to) acts of war or acts of God, or warlike operations in the region where the Rig is located, but shall not include mere financial distress or inability to pay on the part of either party, When, due to termination of such Force Majeure, such
performance is no longer impossible, the party affected thereby shall immediately resume such performance under this Agreement; provided, however, if such event of Force Majeure shall continue for 30 days beyond the Outside Date, either party shall
have the right to terminate this Agreement by written notice to the other party. In the event this Agreement is terminated pursuant to this paragraph, each party shall be released from its obligations hereunder (but without prejudice to any rights
accrued prior to the date of termination). 
  
 19.5 This Agreement
shall be binding upon and inure for the benefit of the parties and their respective successors and assigns. 
  
 19.6 Neither of the parties has the right to make any public statement with regard to or in connection with this Agreement or to disclose information
related thereto without prior approval by the other party, unless required by applicable law, the rules and regulations of the United States Securities and Exchange Commission or applicable rules and regulations of any exchange or market to which
Buyer is subject. Notwithstanding the foregoing, Buyer and Seller shall be entitled, after due notice in advance to the other party, to make such public statements as they reasonably determine are required in order to comply with the rules or
regulations of any securities exchange on which their (or their respective ultimate parent’s) securities are listed for trading. 
  
 19.7 Buyer may, at its option and expense, place a reasonable number of representatives on board the Rig at any time and from time to time during the term
of this Agreement. Buyer shall coordinate with Seller with regard to the timing and method of travel to the Rig. All such representatives shall be subject to any and all safety and other rules in effect on the Rig. Without affecting the indemnity
obligations or liabilities of Buyer hereunder, in the event any such representatives are placed on board the Rig, Buyer shall maintain insurance 

  

 16 

 
coverage relating to such representatives boarding the Rig naming Seller as an additional insured as is reasonably prudent for similarly situated rig
operators. Upon request of Seller, Buyer shall furnish certificates of insurance reflecting that Seller is an additional named insured under such policies and that such policies may not be canceled without thirty (30) days’ prior written notice
to Seller. 
  
 [Remainder of Page Intentionally Left Blank]

  

 17 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in multiple originals by
their duly authorized officers, all as of the day and year first above written. 
  

			
	“BUYER”
	 Hercules Offshore, LLC

		
	By:	 	/S/    RANDALL D.
STILLEY        
	Name:	 	 Randall D. Stilley

	Title:	 	 Authorized Manager

  

			
	“SELLER”
	 Hydrocarbon Capital II LLC

	By: Lehman Commercial Paper Inc., Managing Member
		
	By:	 	/S/    J. ROBERT
CHAMBERS        
	 Name: 
	 	 J. Robert Chambers

	 Title: 
	 	 Authorized Signatory

  

 18 

  
 EXHIBIT “B”

  
 Equipment Excluded from Sale 
  
 The following equipment is not included in the sale: 
  
 NONE 
  

 19 

  
 EXHIBIT “C”

  
 Scope of Work 
  
 Keppel FELS Limited Invoice # 25100180 totaling $115,106.10 to overhaul
engines #2 & #4. 
  

 20Liftboat Purchase Agreement

 Exhibit 10.16 
  
 ASSET PURCHASE AGREEMENT 
  
 by and among 
  
 Hercules Liftboat Company, L.L.C., 
  
 Danos Marine, Inc. 
  
 and 
  
 Danos & Curole Marine
Contractors, L.L.C. 
  
 September 16, 2005

 TABLE OF CONTENTS 
  

					
	ARTICLE 1	  	PURCHASE AND SALE OF ASSETS	  	1
	1.1	  	Purchase and Sale of Assets	  	1
	1.2	  	Assignment of Contracts	  	2
	1.3	  	Purchase Price	  	3
	1.4	  	Post-Closing Purchase Price Adjustment	  	3
	1.5	  	Allocation of Purchase Price	  	4
	1.6	  	Purchase of Inventory on Order	  	4
			
	ARTICLE 2	  	THE CLOSING	  	5
	2.1	  	Time and Place of the Closing	  	5
	2.2	  	Delivery of Purchased Assets	  	5
	2.3	  	Procedure at the Closing	  	5
	2.4	  	Loss of or Damage to Certain Purchased Assets	  	6
			
	ARTICLE 3	  	REPRESENTATIONS AND WARRANTIES OF THE SELLER	  	7
	3.1	  	Status of the Seller	  	7
	3.2	  	Power and Authority; Enforceability	  	7
	3.3	  	No Violation	  	8
	3.4	  	Brokers’ Fees	  	8
	3.5	  	Purchased Assets	  	8
	3.6	  	Contracts	  	9
	3.7	  	Vessels	  	9
	3.8	  	Compliance with Laws	  	10
	3.9	  	Taxes	  	10
	  3.10	  	Labor; Employees	  	10
	  3.11	  	Environmental, Health and Safety Compliance	  	10
	  3.12	  	Litigation	  	11
	  3.13	  	Insurance	  	11
			
	ARTICLE 4	  	REPRESENTATIONS AND WARRANTIES OF THE BUYER	  	12
	4.1	  	Entity Status	  	12
	4.2	  	Power and Authority; Enforceability	  	12
	4.3	  	No Violation	  	12
	4.4	  	Brokers’ Fees	  	12
	4.5	  	Coastwise Citizen	  	12
			
	ARTICLE 5	  	PRE-CLOSING AND POST-CLOSING COVENANTS	  	13
	5.1	  	General	  	13
	5.2	  	Governmental Filings	  	13
	5.3	  	Operation of Business Pending Closing	  	13
	5.4	  	Full Access	  	14
	5.5	  	Publicity; Confidentiality	  	14
	5.6	  	Taxes; Duties and Customs	  	14
	5.7	  	Employees	  	15

  

 ii 

					
	5.8	  	Release of Vessels from Mortgages	  	16
			
	ARTICLE 6	  	POST-CLOSING COVENANTS	  	16
	6.1	  	General	  	16
	6.2	  	Litigation Support	  	16
	6.3	  	Tax Matters	  	17
	6.4	  	Removal of Marks	  	17
	6.5	  	Handling of Cash and Other Payments	  	17
	6.6	  	Agreement Not to Compete	  	17
	6.7	  	Access	  	17
	6.8	  	Andre Danos	  	18
			
	ARTICLE 7	  	CLOSING CONDITIONS	  	18
	7.1	  	Conditions Precedent to Obligation of the Buyer	  	18
	7.2	  	Conditions Precedent to Obligations of the Seller	  	19
			
	ARTICLE 8	  	TERMINATION	  	20
			
	ARTICLE 9	  	INDEMNIFICATION	  	20
	9.1	  	Indemnification of the Buyer by the Sellers	  	20
	9.2	  	Indemnification of the Sellers by the Buyer	  	21
	9.3	  	Notice and Defense of Third Party Claims	  	21
	9.4	  	Limitations of Indemnification	  	22
	9.5	  	Survival	  	22
			
	ARTICLE 10	  	DEFINITIONS	  	23
			
	ARTICLE 11	  	MISCELLANEOUS	  	26
	11.1  	  	Entire Agreement	  	26
	11.2  	  	Successors	  	27
	11.3  	  	Assignments	  	27
	11.4  	  	Notices	  	27
	11.5  	  	Specific Performance	  	28
	11.6  	  	Counterparts	  	28
	11.7  	  	Headings	  	28
	11.8  	  	Governing Law	  	28
	11.9  	  	Amendments and Waivers	  	28
	11.10	  	Severability	  	29
	11.11	  	Expenses	  	29
	11.12	  	Construction	  	29
	11.13	  	Incorporation of Exhibits and Disclosure Schedule	  	29

  
 Disclosure Schedule 
  
 Sec.
1.1A Purchased Assets 
  

 iii 

 Sec. 1.1B Permits 
  
 Sec. 1.1C Business Records 
  
 Sec. 1.1D Drawings and Intellectual Property 
  
 Sec. 1.1E Vehicles 
  
 Sec. 1.2 Assigned Contracts 
  
 Sec. 1.5 Allocation of Purchase Price of Purchased Assets 
  
 Sec. 3.3 Consents 
  
 Sec. 3.5(a) Encumbrances on Purchased Assets 
  
 Sec. 3.7 Vessel Documentation 
  
 Sec 3.10 Labor Matters 
  
 Sec. 3.11 Compliance with Laws 
  
 Sec. 9.1 Certain Indemnification Obligations 
  
 Exhibits 
  
 Exhibit A Form of Bill of Sale, Assignment and Assumption
Agreement 
  
 Exhibit B Form of U.S. Coast Guard
Bills of Sale 
  
 Exhibit C Form of Protocol of
Delivery and Acceptance 
  
 Exhibit D Form of
Time Charter 
  

 iv 

 ASSET PURCHASE AGREEMENT 
  
 This Asset Purchase Agreement (this “Agreement”) is made as of September 16, 2005, by and between
Hercules Liftboat Company, L.L.C., a Delaware limited liability company (the “Buyer”), on the one hand, and DANOS & CUROLE MARINE CONTRACTORS, LLC, a Louisiana limited liability company (“D&C”), and DANOS
MARINE, INC., a Louisiana corporation (“Danos”, and, together with D&C, the “Sellers”), on the other hand. The Buyer and the Sellers may be referred to herein individually as a “Party,” and collectively as
the “Parties.” Except as otherwise provided herein, capitalized terms used herein shall have that meanings specified in Article 10. 
  
 RECITALS 
  
 WHEREAS, D&C owns and operates six lift boat vessels that are currently operating in the Gulf of Mexico and the coastal waters of Nigeria; and

  
 WHEREAS, Danos owns and operates two lift boat vessels
that are currently operating in the Gulf of Mexico and the coastal waters of Nigeria; 
  
 WHEREAS, the Sellers are engaged in the business of providing lift boat services to the offshore oil drilling industry through the Vessels (the “Business”); and 
  
 WHEREAS, the Sellers desire to transfer to the Buyer, and the Buyer
desires to acquire from the Sellers, the Vessels and certain other assets used in the Business, on the terms and conditions specified herein. 
  
 AGREEMENT 
  
 NOW, THEREFORE, in consideration of the foregoing and the mutual promises herein made, and in consideration of the representations, warranties and
covenants contained herein, the Parties agree as follows: 
  
 ARTICLE 1 
 PURCHASE AND SALE OF ASSETS 
  
 1.1 Purchase and Sale of Assets. 
  
 At the Closing, on the terms and subject to the conditions set forth in this Agreement, the Sellers will sell, convey, transfer, assign and deliver to the
Buyer (i) the vessels listed on Schedule 1.1A of the Disclosure Schedule together with their respective engines, tackle, winches, cordage, general outfit, electronic and navigation equipment, radio installations, appurtenances, appliances,
inventory, spare parts, stores, tools and provisions designated for such vessels, whether on board or ashore, (collectively, the “Vessels”) and certain other assets used in the Business and listed on Section 1.1A of the
Disclosure Schedule, (ii) all permits (to the extent transferable) listed on Section 1.1B of 

  

 1 

 
the Disclosure Schedule, (iii) all business records listed on Section 1.1C of the Disclosure Schedule (the “Records”);
(iv) any technical or regulatory documentation pertaining to the Vessels which the Sellers may have in their possession and which is not already aboard the Vessels, including, without limitation, DNV certificates, loadline certificates, radio
licenses, operating manuals and preventive maintenance manuals (collectively, the “Vessel Documentation”); (v) all drawings and intellectual property listed in Section 1.1D of the Disclosure Schedule (the
“Intellectual Property”); and (vi) the vehicles listed on Section 1.1E of the Disclosure Schedule. The assets described in the foregoing clauses (i) through (vi) are hereinafter collectively referred to as the
“Purchased Assets.” 
  
 1.2 Assignment of Contracts.

  
 At the Closing, the Sellers will convey, transfer and
assign to the Buyer the rights of the Sellers under the contracts designated by the Buyer and listed in Section 1.2 of the Disclosure Schedule or designated by the Buyer in writing at least 15 days prior to the Closing (the “Assigned
Contracts”), subject to the following terms and conditions: 
  
 (a) Notwithstanding any other provision hereof, this Agreement shall not constitute nor require an assignment to the Buyer of any contract if an attempted assignment of such contract without the consent of any party would constitute a
breach thereof or a violation of any Law or any Order, rule or regulation of any Governmental Authority or court unless and until such consent shall have been obtained. In the case of any contract that cannot be effectively transferred to the Buyer
without such consent, the Sellers agree that they will promptly use commercially reasonable efforts to obtain or cause to be obtained the necessary consents to the transfer of such contracts. The Buyer agrees to use commercially reasonable efforts
to cooperate with the Sellers in obtaining such consents and to enter into such arrangement of assumption as may be reasonably requested by the other contracting party under such contract, to the extent not inconsistent with the terms of this
Agreement; provided, however, that in no event shall the Buyer be required to pay any fees or other compensation in connection with obtaining such consents. 
  
 (b) With respect to each of the Assigned Contracts that are assigned to the Buyer pursuant to Section 1.2(a), the Sellers shall be entitled to all
revenues, and shall retain all Liabilities and obligations under such contracts resulting from events or occurrences or relating to periods ending prior to the Effective Time, and the Buyer shall be entitled to receive all revenues, and shall assume
all Liabilities and obligations under such contracts resulting from events or occurrences or relating to periods on or after the Effective Time. 
  
 (c) To the extent that consent to assign any Assigned Contract for the use of a Vessel is not obtained prior to Closing (an “Unassigned
Contract”), if a Vessel is performing work for a customer pursuant to the terms of such Unassigned Contract at the Effective Time (a) such Unassigned Contract shall be held by the Sellers in trust for the Buyer after the Effective
Time, (b) all obligations thereunder shall be performed by the Buyer in the name of the Sellers, and (c) all benefits, liabilities and obligations derived 

  

 2 

 
thereunder shall be for the account of the Buyer. Once consent for the assignment of such Unassigned Contract is obtained, the Sellers shall assign such
Unassigned Contract to the Buyer. The arrangement described in this Section 1.2(c) shall terminate on the earlier of the date on which (i) consent to the assignment of the Unassigned Contract is obtained, (ii) the Buyer consummates
other arrangements with the party or parties under such Unassigned Contract providing for the Buyer’s provision of services to such party or parties and the complete release of the Sellers for the future provision of services to such party or
parties or (iii) such Unassigned Contract terminates. Notwithstanding the foregoing, the Sellers shall indemnify the Buyer from any Liabilities arising after the Effective Time from any communications or actions by the Sellers that were not
authorized by the Buyer with respect to any Unassigned Contract. 
  
 1.3
Purchase Price. The aggregate purchase price to be paid by the Buyer for the Purchased Assets shall equal forty-four million dollars ($44,000,000.00) (the “Purchase Price”), of which $37,900,000 shall be paid to D&C and
$6,100,000 shall be paid to Danos. The Purchase Price shall be subject to adjustment pursuant to Sections 1.4 and 2.4. The Buyer will also reimburse the Sellers up to $500,000 for costs and expenses incurred in the salvage of the Vessel Andre
Danos, and will reimburse the Sellers for the deductible under the applicable insurance policy relating to the Andre Danos; provided, however, that in no event, shall the reimbursement for such deductible exceed $1,500,000. 
  
 1.4 Post-Closing Purchase Price Adjustment. 
  
 (a) The Parties agree and acknowledge that the spare parts and
inventory listed in Section 1.1A of the Disclosure Schedule represent, as of the date hereof, all spare parts and inventory of the Sellers on or for use on the Vessels within the ordinary course of the Business. As promptly as practicable, but
in no event later than 30 days after the Closing Date, the Sellers shall cause to be prepared and delivered to the Buyer a revised Section 1.1A of the Disclosure Schedule (the “Revised Inventory List”) that reflects all spare
parts and inventory aboard the Vessels or for use on the Vessels at the time of the Closing. To the extent that the Revised Inventory List differs by more than $50,000 in value with Section 1.1A of the Disclosure Schedule attached hereto, the
Purchase Price will be adjusted, upward or downward, on a dollar-for-dollar basis, to reflect such difference. If the Purchase Price is increased by virtue of the Revised Inventory List containing a value of spare parts and inventory at least
$50,000 greater than the value set forth on the original Section 1.1A of the Disclosure Schedule, the Buyer will deliver to the Sellers, within 5 days of the Revised Inventory List becoming final hereunder, the difference in value set forth on
the Revised Inventory List and Section 1.1A of the Disclosure Schedule attached hereto. If the Purchase Price is decreased by virtue of the Revised Inventory List reflecting a value of spare parts and inventory at least $50,000 less than the
value set forth on the original Section 1.1A of the Disclosure Schedule, the Sellers will refund to the Buyer, within 5 days of the Revised Inventory List becoming final, the difference in value set forth on the Revised Inventory List and
Section 1.1A of the Disclosure Schedule attached hereto.  
  

 3 

 (b) If the Buyer in good faith disagrees with the Revised Inventory List, then the Buyer shall notify the
Sellers in writing (the “Notice of Disagreement”) of such disagreement within 10 days after delivery of the Revised Inventory List to the Buyer. During such 10-day period, the Buyer and its representatives shall be permitted to
review during normal business hours the invoices and records of the Sellers, as they relate to the spare parts and inventory listed on the Revised Inventory List. The Notice of Disagreement shall set forth in reasonable detail the basis for the
disagreement and specify the adjustments that, in the Buyer’s opinion, should be made to the Revised Inventory List in order to comply with the requirements of this Agreement. Thereafter, the Buyer and the Sellers shall attempt in good faith to
reconcile their differences, and any resolution by them as to any disputed items shall be final, binding and conclusive on the Parties and shall be evidenced by a writing signed by the Buyer and the Sellers. If the Buyer and the Sellers are unable
to resolve the disagreement within 15 days after delivery of the Notice of Disagreement, then the Buyer and the Sellers shall instruct an independent accountant, agreed on by both Parties (the “Independent Accountant”), to resolve
the disputed items and make a determination with respect thereto, which determination shall be provided to the Buyer and the Sellers by the Independent Accountant in a written notice within 30 days after selection of the Independent Accountant.

  
 (c) The Revised Inventory List shall be deemed to be final,
binding and conclusive on the Buyer and the Sellers upon the earliest of (i) the failure of the Buyer to deliver to the Seller a Notice of Disagreement within 10 days of the Sellers’ delivery of the Revised Inventory List; (ii) the
resolution of all disputes by the Buyer and the Sellers, as evidenced by a signed writing or (iii) the resolution of all disputes by the Independent Accountant, as evidenced by the amended and binding Independent Accountant’s Revised
Inventory List. 
  
 1.5 Allocation of Purchase Price. Unless otherwise
agreed to in writing by the Parties, (a) Section 1.5 of the Disclosure Schedule attached hereto sets forth the allocations established by the Buyer and the Sellers of the Purchase Price among the Purchased Assets; (b) the allocations
set forth in Section 1.5 of the Disclosure Schedule will be used by the Buyer and the Sellers as the basis for reporting asset values and other items for purposes of all required tax returns (including any tax returns required to be filed under
Section 1060(b) of the Code and the treasury regulations thereunder); and (c) the Buyer and the Sellers shall not assert, in connection with any audit or other proceeding with respect to taxes, any asset values or other items inconsistent
with the allocations set forth in Section 1.5 of the Disclosure Schedule. 
  
 1.6 Purchase of Inventory on Order. Following the Closing, the Buyer will purchase from the Sellers any equipment or other materials that were ordered in the ordinary course of business, consistent with past practices, prior to the
Closing for use upon the Vessels or as part of Inventory, but was not delivered or invoiced prior to the Closing. The purchase price for such equipment and Inventory shall be equal to the invoiced amount owed by the Sellers. 
  

 4 

 ARTICLE 2 
 THE CLOSING 
  
 2.1 Time and Place of
the Closing. The closing of the transactions contemplated hereby (the “Closing”) will take place at the offices of Adams and Reese, LLP in Houston, Texas, or at such other location agreed by the Parties, commencing at 9:00 a.m.,
Houston time, on October 31, 2005; provided that the satisfaction or waiver of all conditions to the obligations of the Parties to consummate the transactions contemplated hereby has occurred (other than conditions with respect to actions the
respective Parties will take at the Closing itself), or such other date as the Parties may mutually determine (the “Closing Date”). The Closing shall be deemed consummated and effective as of the close of business on the Closing
Date (the “Effective Time”). 
  
 2.2 Delivery of Purchased
Assets. At the Effective Time, title, ownership and possession of the Purchased Assets shall pass to the Buyer and the Buyer shall take possession of the Purchased Assets free and clear of all Encumbrances wherever they are located at the
Effective Time. 
  
 2.3 Procedure at the Closing. 
  
 (a) At the Closing, the Sellers shall deliver, or cause to be delivered, to
the Buyer: 
  
 (i) a Bill of Sale, Assignment and
Assumption Agreement, substantially in the form attached as Exhibit A hereto, duly executed by the applicable Seller, and (B) Bills of Sale, in the forms attached as Exhibit B hereto for the Vessels in form suitable for
recording with the U.S. Coast Guard National Vessel Documentation Center (the items set forth in subsections (A) and (B) are collectively referred to as the “Bills of Sale”); 
  
 (ii) a certificate from each Seller, duly executed by an
officer or manager of such Seller, certifying as to the matters set forth in Sections 7.1(a) and (b); 
  
 (iii) all of the Records and Vessel Documentation (provided that the Sellers may retain copies of such Records and Vessel Documentation);

  
 (iv) evidence of the consents and releases
referred to in Sections 5.2, 5.8, and 7.1(c) below; 
  
 (v) a Protocol of Delivery and Acceptance for each Vessel, in the form attached as Exhibit C hereto (the “Protocols of Delivery and Acceptance”), duly executed by the applicable Seller; 
  
 (vi) certificates of title for all vehicles included in the
Purchased Assets; 
  

 5 

 (vii) a Time Charter Agreement (the “Time Charter Agreement”) duly
executed by Danos & Curole Nigeria, Ltd., in the form attached as Exhibit D hereto; and 
  
 (viii) such other instruments and documents as the Buyer may reasonably require. 
  
 (b) At the Closing, the Buyer shall deliver, or cause to be delivered, to the
Sellers: 
  
 (i) the Purchase Price, as adjusted
pursuant to Section 2.4, in cash or other immediately available funds by wire transfer to the accounts designated by the Sellers in writing at least two Business Days prior to the Closing Date; 
  
 (ii) the Bill of Sale, Assignment and Assumption Agreement,
duly executed by the Buyer; 
  
 (iii) a
certificate, duly executed by an officer of the Buyer, certifying as to the matters set forth in Sections 7.2(a) and (b); 
  
 (iv) the Protocols of Delivery and Acceptance, duly executed by the Buyer; 
  
 (v) the Time Charter Agreement duly executed by the Buyer; and 
  
 (vi) such other instruments and documents as the Sellers may
reasonably require. 
  
 2.4 Loss of or Damage to Certain Purchased Assets.

  
 (a) If, between the date of this Agreement and the
Effective Time there is an actual total casualty loss, a constructive total casualty loss or a compromised total casualty loss (collectively, a “Total Loss”) of any Vessel identified in Section 1.1A of the Disclosure Schedule,
including by governmental or private seizure or arrest, forced sale or other involuntary transfer (“Unavailable Assets”), then the Purchase Price shall be reduced by the value ascribed to such Unavailable Asset(s) in
Section 1.5 of the Disclosure Schedule. 
  
 (b) If, between
the date of this Agreement and the Effective Time, any Purchased Asset is damaged, but not a Total Loss, then no Purchase Price adjustment shall be made and the Sellers shall be responsible for repairing such Purchased Asset at the Sellers’
sole cost and the Buyer shall make such Purchased Asset available to the Sellers, at no cost to the Sellers, after the Closing for the purpose of repairing it; provided, however, that the Sellers shall not be obligated to repair any Purchased Asset
if the cost of such repair is not reasonably expected to exceed $30,000. The Sellers shall use commercially reasonable efforts to complete all such repairs in as short a time as possible, and in any event the Sellers shall complete all such repairs
within 30 days after 

  

 6 

 
the Closing Date. The adjustment mechanism described in this Section 2.4 will not be applied with respect to any asset that has been replaced by the
Sellers by a similar asset of comparable value that is reasonably acceptable to the Buyer and where such vessel is in an appropriate condition to conduct the Business as presently conducted by the Vessel it is replacing. 
  
 (c) The adjustment mechanism described in Section 2.4(a) will be applied
and the Parties will be required to proceed with the Closing so long as the estimated adjustment pursuant to Section 2.4(a) would not exceed $5,000,000.00. If the estimated adjustment pursuant to Section 2.4(a) would exceed $5,000,000.00,
then the Buyer or the Sellers may, at their option, either continue to apply the adjustment mechanism and proceed with the Closing or terminate this Agreement without consummating the transactions contemplated hereby. 
  
 ARTICLE 3 
 REPRESENTATIONS AND WARRANTIES OF THE SELLERS 
  
 The Sellers, jointly and severally, represent and warrant to the Buyer as follows, except as set forth on the Disclosure Schedule: 
  
 3.1 Status of the Sellers. (a) Danos is duly organized, validly existing and in
good standing under the laws of the State of Louisiana, and (b) D&C is duly organized, validly existing and in good standing under the laws of the State of Louisiana. Each of the Sellers has the power and authority to own, lease and operate
the Purchased Assets and to conduct the Business. Each of the Sellers is duly authorized, qualified or licensed to do business as a foreign limited liability company and is in good standing in each jurisdiction in which its right, title or interest
in or to any of the Purchased Assets or the conduct of the Business requires such authorization, qualification or licensing, except where the failure to so qualify or to be in good standing would not have a material adverse effect on any of the
Purchased Assets, the Business or the results of operations of the Sellers. There is no pending or, to the Knowledge of the Sellers, threatened, action for the dissolution, liquidation, insolvency or rehabilitation of either Seller. 
  
 3.2 Power and Authority; Enforceability. Each of the Sellers has the power and
authority to execute and deliver each Transaction Document to which it is a party, and to perform and consummate the transactions contemplated thereby. Each of the Sellers has taken all actions necessary to authorize the execution and delivery of
each Transaction Document to which it is party, the performance of its obligations thereunder, and the consummation of the transactions contemplated thereby. Each Transaction Document to which either Seller is a party or by which either Seller is
bound has been or will be duly authorized, executed and delivered by, and is or will be enforceable against, such Seller, except as such enforceability may be subject to the effects of bankruptcy, insolvency, reorganization, moratorium or other Laws
relating to or affecting the rights of creditors and general principles of equity. 
  

 7 

 3.3 No Violation. The execution and the delivery of the Transaction Documents by each of the Sellers and the
performance and consummation of the transactions contemplated thereby by it will not (a) breach in any material respect any Law or Order to which such Seller is subject or any provision of such Seller’s organizational documents,
(b) breach in any material respect any contract, Order, or Permit to which it is a party or by which it is bound or to which any of its assets is subject, (c) require the giving of notice to, or the consent of, any Person, the lack of
which would reasonably be expected to materially affect the Buyer’s ownership or operation of the Purchased Assets, or (d) result in the creation of any Encumbrances, except for such consents contemplated by Section 5.2 or
specifically set forth in Section 3.3 of the Disclosure Schedule. 
  
 3.4
Brokers’ Fees. Neither Seller has any Liability to pay any compensation to any broker, finder, or agent with respect to the transactions contemplated hereby for which the Buyer could become directly or indirectly liable. 
  
 3.5 Purchased Assets. 
  
 (a) Except for the Encumbrances disclosed to the Buyer in Section 3.5(a) of the Disclosure Schedule, each Seller has
good, valid and marketable title to the Purchased Assets being conveyed by such Seller hereunder. All Encumbrances referenced in Section 3.5(a) of the Disclosure Schedule shall be released prior to the Closing. 
  
 (b) The Vessels have been maintained by the Sellers in conformity with their
customary past practices and the Sellers have delivered to the Buyer complete and accurate, in all material respects, copies of the maintenance logs for each of the Vessels. 
  
 (c) EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, ALL OF THE PURCHASED ASSETS TO BE CONVEYED AT THE CLOSING WILL BE
CONVEYED, “AS IS, WHERE IS”, WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, AS TO ITS CONDITION. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE BUYER HEREBY SPECIFICALLY ACKNOWLEDGES AND AGREES THAT UPON AND AFTER EXECUTION OF THE SALE
CONTEMPLATED BY THIS AGREEMENT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT AND EXCEPT FOR FRAUD, THE BUYER SHALL HAVE NO RECOURSE WHATEVER AGAINST THE SELLER FOR ANY DEFECTS IN THE PURCHASED ASSETS, WHETHER SUCH DEFECTS ARE VISIBLE OR HIDDEN.
THE BUYER FURTHER ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, IT IS PURCHASING, AND THE SELLER IS SELLING, THE PURCHASED ASSETS WITHOUT ANY EXPRESS, IMPLIED OR STATUTORY WARRANTY AGAINST VICES AND DEFECTS THEREIN, WHETHER
APPARENT, LATENT OR HIDDEN, OR REDHIBITORY VICES. THE BUYER EXPRESSLY WAIVES, AND THE SELLERS EXPRESSLY DISCLAIM, ANY IMPLIED OR STATUTORY WARRANTIES GROWING OUT OF OR CONNECTED WITH ANY VICES OR DEFECTS IN THE PURCHASED ASSETS, WHETHER APPARENT,
LATENT OR HIDDEN, OR REDHIBITORY VICES AND DEFECTS. EXCEPT AS EXPRESSLY SET FORTH IN THIS 

  

 8 

 
AGREEMENT, THE BUYER FURTHER EXPRESSLY WAIVES ANY RIGHT FOR A RESCISSION OF THIS SALE OR REDUCTION OF THE PRICE OF THE PURCHASED ASSETS AS A RESULT OF SUCH
VICES AND DEFECTS, AND FURTHER EXPRESSLY WAIVES ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, INCLUDING THE WARRANTIES PROVIDED FOR IN ARTICLES 2520, 2531, 2541 AND 2545 OF THE LOUISIANA CIVIL CODE, AND UNDER ANY SUCCESSOR
ARTICLES THERETO. THIS EXPRESS WAIVER OF REPRESENTATIONS AND WARRANTIES SHALL BE CONSIDERED A MATERIAL AND INTEGRAL PART OF THIS TRANSACTION ENTERED INTO BETWEEN THE PARTIES HERETO, WITHOUT WHICH THE SELLERS WOULD NOT HAVE CONVEYED AND ASSIGNED THE
PURCHASED ASSETS. THE NEGATION AND EXCLUSION OF WARRANTY OF THIS PARAGRAPH HAS BEEN EXPLAINED TO THE BUYER AND THE BUYER TAKES NOTE OF SAME AND BY EXECUTING THIS AGREEMENT, AND THE BILLS OF SALE, THE BUYER CERTIFIES THAT THE BUYER UNDERSTANDS THIS
PARAGRAPH, THAT ANY QUESTIONS OR DOUBTS THE BUYER HAD CONCERNING SAME HAVE BEEN ANSWERED SATISFACTORILY FOR THE BUYER, AND THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE BUYER ACCEPTS THE PURCHASED ASSETS SUBJECT TO THE NEGATION AND THE
EXCLUSION OF WARRANTIES HEREIN PROVIDED. 
  
 (d) The Purchased
Assets are all of the assets necessary for the performance of the Vessel operations as currently conducted. 
  
 3.6 Contracts. The Sellers have delivered to the Buyer a correct and complete copy of each Assigned Contract (as amended to date). With respect to each such contract: (a) such contract was duly and validly
executed and delivered by the appropriate Seller and, to the Knowledge of the Sellers, the other parties thereto; (b) the contract is legal, valid, binding, enforceable against such Seller and, to the Knowledge of the Sellers, the other parties
thereto, and is in full force and effect; (c) such Seller has not, and to the Knowledge of the Sellers, no other party has, repudiated any material provision of the contract; and such Seller is not in material default under any assigned
contract. 
  
 3.7 Vessels. At the Closing, the Vessels shall be free and
clear of all Encumbrances. Each of the Sellers is a “citizen of the United States” within the meaning of Section 2 of the Shipping Act, 1916, as amended, qualified to engage in the coastwise trade (as that term is defined in 46 U.S.C.
S883) of the United States. Except as disclosed on Schedule 3.7 attached hereto, the Vessels are duly documented under the laws and flag of the United States solely in the name of the appropriate Seller and are qualified to engage in, and are
currently engaged in, the coastwise trade. The Vessels that are operating in Nigerian waters are operating in compliance with the Cabotage Act of 2003 and the Shipping Act, 1916. The Vessels are duly documented in the name of the appropriate Seller
as owner with the U.S. Coast Guard and, except as disclosed on Schedule 3.7 attached hereto, the Vessels have, and as of the Closing Date will have, current certificates of inspection and documentation in effect with the U.S. Coast Guard, in each

  

 9 

 
case free of reportable exceptions or notations of record. Except as disclosed on Schedule 3.7 attached hereto, each Vessel is afloat and in satisfactory
operating condition for use in the operations for which it is intended to be used. Except as disclosed on Schedule 3.7 attached hereto, each Vessel has all equipment necessary for its operation in the manner vessels of its kind are being operated in
the trade in which such Vessel is presently being operated. Except as disclosed on Schedule 3.7 attached hereto, each Vessel holds in full force all licenses, certificates and permits and rights required for operation in the manner vessels of its
kind are being operated in the trade in which such Vessel is presently being operated. Except as disclosed on Schedule 3.7 attached hereto, with respect to each Vessel which is required to be classed, such Vessel has a valid and unextended class
certificate without condition or recommendation, and the class of such Vessel is maintained without condition or recommendation. Except as disclosed on Schedule 3.7 attached hereto, with respect to each Vessel that is required to have a certificate
of inspection, such Vessel has a valid certificate of inspection, valid for at least 12 months. 
  
 3.8 Compliance with Laws. Except for the matters covered by Section 3.11, neither Seller has received written notice of any violation, or potential violation, of, and is in material compliance with all,
and is not in material violation of, any Law or Order applicable to either of the Sellers or the Vessels. 
  
 3.9 Taxes. Each Seller has duly and timely prepared and filed with the appropriate Governmental Authorities all returns, reports, information returns or other documents filed or required to be filed with such
governmental authorities and has paid any taxes or other amounts due in respect thereof that if unpaid could result in a claim by any Governmental Authority against any of the Vessels or the Buyer. 
  
 3.10 Labor; Employees. Section 3.10 of the Disclosure Schedule lists all
employees working on the Vessels (the “Vessel Crew”), the current rate of pay for each such employee and any and all commissions, bonuses, benefits or other compensation arrangements between the Sellers and each of such employees. Except
as set forth on Schedule 3.10, no member of the Vessel Crew is presently a member of a collective bargaining unit, and to the Sellers’ Knowledge, there are no threatened or contemplated attempts to organize for collective bargaining purposes
any of the members of the Vessel Crew. There are no liabilities under any of the Sellers’ Plans which would subject the Buyer or the Vessels to any taxes, penalties or other liabilities. The Sellers will make available to the Buyer the
opportunity to recruit all Vessel Crew personnel who are employed by the Sellers at the Effective Time. 
  
 3.11 Environmental, Health and Safety Compliance. Except as described in Schedule 3.11 attached hereto, and except where the failure of any of the following statements to be true would not reasonably be
expected to result in a material adverse effect on the Vessels taken as a whole or the ownership, operation or chartering of the Vessels taken as a whole: 
  
 (a) Each Seller is and has been in compliance with all Environmental Laws with respect to the Vessels, including 29 C.F.R.
§§ 1910.1001 and 1915.1001 

  

 10 

 
regarding safety and health standards, 40 C.F.R. §§ 61.145 regarding removal, shipping, dislodging, cutting, drilling or other disturbance of
asbestos-containing materials, 40 C.F.R. § 61.150 regarding disposal of any asbestos-containing products, and 49 C.F.R. parts 171 and 172 regarding disposal of any asbestos and/or asbestos-containing materials; 
  
 (b) to the Sellers’ Knowledge, none of the Sellers or
the Vessels are subject to any remedial obligations under any Environmental Laws; 
  
 (c) to the Sellers’ Knowledge, all material notices, permits, or similar authorizations, if any, required to be obtained or filed
under any Environmental Law in connection with the current operation of the Vessels have been obtained or filed; 
  
 (d) to the Sellers’ Knowledge, there are no past, pending or threatened investigations, proceedings or claims against Vessels
relating to the presence, release or remediation of any Hazardous Material related to the Vessels or for non-compliance with any Environmental Law related to the Vessels; 
  
 (e) There are no conditions or circumstances which exist or have existed with respect to any of the Sellers,
or the Vessels or for non-compliance with any Environmental Law related to the Vessels; 
  
 (f) to the Sellers’ Knowledge, there are no conditions or circumstances which exist or have existed with respect to either of the
Sellers, or the Vessels including the offsite disposal of Hazardous Materials, that could impose any liability on the Buyer with respect to any Environmental Law; and 
  
 (g) To the Sellers’ Knowledge, there is no asbestos existing on any of the Vessels. 
  
 3.12 Litigation. There is no litigation or proceeding (including any condemnation
proceeding) affecting or relating to the Purchased Assets pending (with service or other written notice having been made or otherwise delivered to or received on behalf of the Sellers) or, to the Knowledge of the Sellers, threatened. There is no
claim or governmental investigation affecting or relating to the Purchased Assets pending or, to the Knowledge of the Sellers, threatened. 
  
 3.13 Insurance. Each of the Sellers maintains with sound and reputable insurers, and there are currently in full force and effect, policies of insurance with
respect to the Purchased Assets and Business against such casualties and contingencies of such type and such amounts as are customary for lift boat operators of similar size engaged in similar operations as the Business. All premiums due and payable
with respect to such policies have been timely paid. No notice of cancellation of, or indication of an intention not to renew, any such policy has been received by either of the Sellers. In accordance with the terms of the applicable policy, Sellers
have provided their insurance broker with 

  

 11 

 
written notice that damage was incurred by the vessel Andre Danos during Hurricane Katrina. 
  
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES OF THE BUYER 
  
 The Buyer represents and warrants to the Sellers as follows: 
  
 4.1 Entity Status. The Buyer is a limited liability company duly created, formed or organized, validly existing and in good standing under the Laws of the
State of Delaware. There is no pending or, to the Knowledge of the Buyer, threatened, action for the dissolution, liquidation, insolvency or rehabilitation of the Buyer. 
  
 4.2 Power and Authority; Enforceability. The Buyer has the power and authority to execute and deliver each Transaction Document
to which it is party, and to perform and consummate the transactions contemplated thereby. The Buyer has taken all action necessary to authorize the execution and delivery of each Transaction Document to which it is party. Each Transaction Document
to which the Buyer is party has been or will be duly authorized, executed and delivered by, and is or will be enforceable against, the Buyer, except as such enforceability may be subject to the effects of bankruptcy, insolvency, reorganization,
moratorium or other Laws relating to or affecting the rights of creditors and general principles of equity. 
  
 4.3 No Violation. The execution and delivery of the Transaction Documents to which the Buyer is party and the performance and consummation of the transactions contemplated thereby by the Buyer will not
(a) breach in any material respect any Law or Order to which the Buyer is subject or any provision of its organizational documents, (b) breach in any material respect any contract, Order or Permit to which the Buyer is a party or by which
it is bound or to which any of its assets is subject or (c) require the giving of notice to, or the consent of, any Person, except for such consents contemplated by Section 5.2. 
  
 4.4 Brokers’ Fees. The Buyer has no Liability to pay any compensation to any broker, finder or agent with respect to the
transactions contemplated hereby for which the Seller could become liable. 
  
 4.5 Coastwise Citizen. The Buyer is a “citizen of the United States” within the meaning of Section 2 of the Shipping Act, 1916, as amended, qualified to engage in the coastwise trade (as that term is defined in 46
U.S.C. S883) of the United States. 
  

 12 

 ARTICLE 5 
 PRE-CLOSING COVENANTS 
  
 The Parties agree as follows with respect to the period between the execution of this Agreement and the Closing Date, except as otherwise expressly provided in this Article 5: 
  
 5.1 General. Each Party will use commercially reasonable efforts to take all actions and to do all things necessary, proper or
advisable to consummate, make effective and comply with all of the terms of this Agreement and the transactions contemplated hereby (including satisfaction, but not waiver, of the Closing conditions set forth in Article 7). 
  
 5.2 Governmental Filings. The Parties agree that the transactions contemplated by this
Agreement are subject to the approval of the Department of Transportation — Maritime Administration (“MARAD”) and that the Parties shall cooperate with each other to make the required filings and submissions required by MARAD in
connection with the transactions contemplated by this Agreement. 
  
 5.3
Operation of Business Pending Closing. Neither Seller will engage in any practice, take any action or enter into any transaction outside the ordinary course of the Business and will continue to operate the Purchased Assets in a manner consistent
with the past practices of the Business, including maintenance and repair of operating Vessels and related equipment. Without limiting the foregoing: 
  
 (a) other than a forced sale because of a Total Loss, the Sellers will not sell, transfer or assign any of the Purchased Assets or agree to sell, transfer
or assign any of the Purchased Assets, other than inventory used in the ordinary course of business; 
  
 (b) the Sellers will not impose or permit to be imposed any Encumbrance upon any of the Purchased Assets that will not be fully released at Closing;

  
 (c) the Sellers will not fail to keep in full force and effect
the currently existing insurance coverage on the Purchased Assets; 
  
 (d) the Seller will not enter into any contract or charter (or similar arrangement) with a term greater than 30 days with respect to the Vessels without the prior consent of the Buyer; 
  
 (e) the Sellers will inform the Buyer as promptly as practicable of the
occurrence of any destruction, material damage or material loss of any Purchased Asset; 
  
 (f) the Sellers will perform in all material respects its obligations under all agreements that are related to any of the Purchased Assets; 
  

 13 

 (g) the Sellers will continue to purchase supplies and similar items in the ordinary course of business,
and will continue to replenish inventory and spare parts on the Vessels in accordance with past practices; 
  
 (h) the Sellers will continue to maintain and operate the Vessels in conformity with the past practices of the Sellers; and 
  
 (i) the Sellers will use commercially reasonable efforts to keep intact the
relationships of the Business with its licensors, suppliers, customers and employees. 
  
 5.4 Full Access. The Sellers will permit representatives of the Buyer to have full access at all reasonable times, and in a manner so as not to interfere with the normal business operations of the Sellers, to all Vessels, premises,
properties, personnel, books, records and documents related to the ownership or operation of the Purchased Assets and the Business (but excluding any such books, records and documents relating exclusively to the businesses of the Sellers other than
the Business), and will furnish copies of all such books, records and documents as the Buyer may reasonably request; provided, however, that the Sellers shall not be obligated to provide the Buyer with access to any books and records regarding the
Sellers’ employees if providing such records would be prohibited by applicable Laws. The foregoing provisions on access shall apply from the effective date hereof until the Closing or earlier termination of this Agreement. 
  
 5.5 Publicity; Confidentiality. The Parties shall consult with each other prior to
issuing any press release or any written public statement with respect to this Agreement or the transactions contemplated hereby, and shall not issue any such press release or written public statement without the prior written consent of the other
Party, which consent shall not be unreasonably withheld. Except as may be required by Law or as otherwise expressly contemplated herein, neither the Buyer nor its employees, agents, or representatives shall disclose to any third party this
Agreement, the subject matter or terms hereof or any Confidential Information without the prior written consent of the Sellers; provided, however, that the Buyer may disclose any such Confidential Information as follows: (a) to the Buyer’s
employees, lenders, counsel or accountants who have agreed to be subject to the requirements of this Section 5.5, (b) to comply with any applicable Law or Order, provided that prior to making any such disclosure the Buyer notifies the
Sellers of any action or proceeding of which it is aware which may result in disclosure and uses its commercially reasonable efforts to limit or prevent such disclosure and (c) to comply with the Buyer’s requirements under the Securities
Act and the Exchange Act. 
  

	5.6	Taxes; Duties and Customs. 

  
 (a) Any transfer taxes, stamp taxes and sales and use taxes relating to the sale or purchase of the Purchased Assets hereunder and for any related
interest and penalties (including any attorneys or accountants fees associated with contesting such tax upon written agreement of the Parties) (collectively, “Sale Taxes”) that are imposed by the United States of America or any state or
local Governmental Authority therein or by the 

  

 14 

 
country of Nigeria or any Governmental Authority within Nigeria shall be paid and apportioned equally among the Buyer, on one hand, and the Sellers on the
other. The Sellers shall bear all taxes that relate to the ownership, operation or storage of the Vessels prior to the Effective Time. The Buyer shall bear all taxes that relate to the ownership, operation or storage of the Vessels after the
Effective Time. The Parties shall use commercially reasonable efforts to minimize the amounts of Sale Taxes to the extent reasonably practicable. 
  
 (b) The Sellers and the Buyer agree to cooperate with each other in order to reduce any customs or import duties or similar charges assessed or assessable
against either the Sellers or the Buyer in connection with the sale or purchase of the Purchased Assets hereunder; including; without limitation, transferring title to the Vessels in mutually acceptable locations in international waters on the
Closing Date. 
  

	5.7	Employee Matters. Except as contemplated in the Time Charter Agreement: 

  
 (a) Immediately prior to the Effective Time, the Sellers shall terminate their employment of the Vessel Crew, each of whom
is actively at work and assigned to crew the Vessels. The Sellers shall pay in full all compensation, bonuses, accrued severance and other payments that may result from the termination of employment by the Sellers of any employee(s) of the Sellers
and any compensation due such employees up to and including the Closing Date. The Buyer will employ all of the Vessel Crew (subject to the Buyer’s existing standards for employment) effective as of the Effective Time at base salaries or wages
comparable to those paid to similarly situated employees of the Buyer, giving each such employee full credit under the Buyer’s benefit plans for years of service with the Sellers. To the extent that the Buyer does not employ more than 45
persons whose employment was severed by the Sellers hereunder, the Buyer will be responsible for liabilities imposed on the Sellers under the Worker Adjustment and Retraining Notification Act that are directly related to the termination by the
Seller of any employees pursuant to this Section 5.7(a). Upon request of the Buyer and subject to applicable law, the Seller shall provide the Buyer access to, and provide data regarding, employment information concerning the Vessel Crew and
such other personnel records as the Buyer may reasonably request. The Sellers have made and makes no other representation or warranty or any other statement or communication regarding the Buyer’s right, ability, plan or intention to employ any
employee of the Sellers or the terms and conditions upon which any such employee may be employed by the Buyer and will not make any such representations, warranties, statements or communications during the period beginning on the date hereof and
ending on the Closing Date. 
  
 (b) The Buyer shall not assume any
Plan, program or arrangement of the Sellers. The Sellers shall have no responsibility for, and the Buyer shall be responsible for, any and all liabilities, obligations and claims of any kind arising out of employment of the Vessel Crew by the Buyer
after the Effective Time. The Buyer shall have no responsibility for, and the Sellers shall be responsible for, any and all liabilities, obligations and claims of any kind arising out of employment of any employees by the Seller before the Effective
Time and the termination of employment of any employees by 

  

 15 

 
the Seller. The Buyer shall not be deemed to be a successor employer to the Sellers with respect to any employee benefit plans or programs of the Sellers,
and no plan or program adopted or maintained by the Buyer after the Closing Date is or shall be deemed to be a “successor plan,” as such term is defined in Employee Retirement Income Security Act or the Code, of any such plan or benefit
program of the Sellers. 
  
 (c) Notwithstanding anything contained
in this Agreement to the contrary, nothing in this Agreement shall cause duplicate benefits to be paid or provided to or with respect to a member of the Vessel Crew under any employee benefit policies, Plans, arrangements, programs, practices, or
agreements of the Sellers or the Buyer, nor shall anything contained herein be deemed to require the Buyer to continue the employment of any person for any period of time. 
  
 5.8 Release of Vessels from Mortgages. 
  
 (a) On or before the Closing Date the Sellers shall cause the Vessels to be released from any mortgages or other Encumbrances encumbering them and shall
deliver certificates of ownership certified by the U.S Coast Guard National Vessel Documentation Center showing the Vessels to be free of Encumbrances. 
  
 (b) The Sellers shall be solely responsible for the payment of any release fees, recording fees or other costs associated with such releases.

  
 ARTICLE 6 
 POST-CLOSING COVENANTS; ADDITIONAL COVENANTS 
  
 The Parties agree as follows with respect to the period following the Closing, or, in the case of Section 6.7, for the periods so indicated:

  
 6.1 General. In case at any time after the Closing any further action
is necessary or desirable to carry out the purposes of this Agreement, each Party will take such further action (including, the execution and delivery of such further instruments and documents) as the other Party reasonably may request, all at the
requesting Party’s sole cost and expense. 
  
 6.2 Litigation Support.
So long as any Party actively is contesting or defending against any action, suit, proceeding, hearing, investigation, charge, complaint, claim or demand against any Person other than the other Party in connection with (a) the transactions
contemplated by this Agreement or (b) any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event, incident, action, failure to act, or transaction involving any of the Purchased Assets, the other Party
will cooperate with such Party and such Party’s counsel in the contest or defense, make available their personnel and provide such testimony and access to their books and records as shall be necessary in connection with the contest or defense,
at the sole cost and expense of the contesting or defending Party. 
  

 16 

 6.3 Tax Matters. After the Closing, the Parties will cooperate fully with each other, on a commercially reasonable
basis, in connection with the preparation, signing and filing of tax returns and in any administrative, judicial or other proceeding involving taxes relating to the Purchased Assets, including the furnishing or making available of records, books of
account or other materials necessary. 
  
 6.4 Removal of Marks. Promptly
following the Closing, but in any event within 60 days after the Closing Date, the Buyer shall remove, or cause to be removed, from all Purchased Assets other than Purchased Assets then being used in Nigeria or offshore Nigeria, any markings bearing
the name “Danos & Curole Marine Contractors” or “Danos Marine, Inc.” (including any variations or derivations thereof) or any trademarks, trade names or logos of the Sellers. The Buyer shall remove, or cause to be
removed, all such markings, trademarks, trade names or logos from Purchased Assets used in Nigeria or offshore Nigeria as soon as reasonably practicable following the Closing. 
  
 6.5 Handling of Cash and Other Payments. The Sellers shall promptly deliver to the Buyer any cash, checks or other instruments of
payment received by the Sellers after the Effective Time in respect of the Purchased Assets relating to periods after the Effective Time. Likewise, the Buyer shall promptly deliver to the Sellers any cash, checks or other instruments of payment
received by the Buyer after the Effective Time in respect of the Purchased Assets relating to periods before the Effective Time. If a payment is received by a Party for services or products provided by the Vessels both prior to and after the
Effective Time and there is no clear delineation of the amounts attributed to the periods preceding and following the Effective Time, then the Parties shall use reasonable proration techniques to allocate such amounts in a manner such that the
Sellers will receive amounts attributable to the operation of the Vessels prior to the Effective Time and the Buyer will receive amounts attributable to the operation of the Vessels after the Effective Time. 
  
 6.6 Agreement Not to Compete. Each of the Sellers agrees that, except as contemplated
by the Time Charter Agreement, during the two-year period following the date of the Closing, the Sellers will not compete with the Buyer by engaging, directly or indirectly, in the business of providing lift boat services to the offshore oil
drilling industry in the Gulf of Mexico or the waters offshore Nigeria. Any violation of this Agreement will entitle the Buyer, at the Buyer’s option, either to (a) an aggregate payment of $5,000,000 from the Sellers as liquidated damages
or (b) the right to proceed against the Sellers in a court for injunctive relief and/or monetary damages. The Parties hereby agree to the exclusive jurisdiction of the federal and state courts of Harris County, Texas for any such proceeding.

  
 6.7 Access. From the date hereof, until the six-month anniversary of
the Closing, the Sellers shall provide full access at all reasonable times, and in a manner so as not to interfere with the normal business operations of the Sellers, to all accounting and audit records, accounting personnel and any independent
accounting firms having performed audit functions for the Sellers, so that the Buyer can prepare any financial statements relating to the Purchased Assets required by the Securities and Exchange Commission to 

  

 17 

 
be filed in any filings of the Buyer under the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of
1934, as amended (the “Exchange Act”). 
  
 6.8 Andre
Danos. The Sellers agree that they will, as soon as is reasonably practical following the date of this Agreement, salvage and repair (to the extent it is not a Total Loss) the Andre Danos. The Sellers shall use their
commercially reasonable best efforts to pursue their insurance claims. If the vessel is not a Total Loss, the Sellers shall cause the Andre Danos to be repaired in a reputable shipyard, to be mutually agreed to by the Buyer and the Sellers,
and shall apply all available insurance proceeds toward the repair of the Andre Danos. Once insurance proceeds are completely expended, should additional repairs to the Andre Danos be required, Buyer will be responsible for funding
such repairs. If it is determined that the damage to the Andre Danos suffered during Hurricane Katrina and/or during the salvage operation has resulted in the vessel being a Total Loss, then the Purchase Price shall be adjusted downward by an
amount equal to the total insurance proceeds paid to the Sellers with respect to the Andre Danos. If the full Purchase Price has already been paid, then the Sellers will reimburse the Buyer for any amounts that would have been deducted from
the Purchase Price under the previous sentence. Nothing in this Section 6.8 will affect the Buyer’s obligation to pay the salvage costs of the Andre Danos and to pay the deductible under the Sellers’ applicable insurance
policies, as provided in Section 1.3 hereof. Notwithstanding anything to the contrary set forth herein, delivery of the Andre Danos shall occur on the later to occur of (1) the Closing, and (2) upon completion of such repairs.
The Sellers shall deliver, and the Buyer shall accept, the Andre Danos in federal or international waters in the Gulf of Mexico. 
  
 ARTICLE 7 
 CLOSING CONDITIONS

  
 7.1 Conditions Precedent to Obligation of the Buyer. The
obligations of the Buyer with respect to actions to be taken on the Closing Date are subject to the satisfaction or waiver in writing on or prior to the Closing Date of all of the following conditions. The Buyer shall have the right to waive any
condition not so satisfied. 
  
 (a) Accuracy of Representations
and Warranties. Each representation and warranty set forth in Article 3 must be accurate and complete in all material respects (except with respect to any provisions including the word “material” or words of similar import, with
respect to which such representations and warranties must have been accurate and complete) as of the Closing Date, as if made on the Closing Date, except that those representations and warranties which address matters only as of a particular date
only shall be required to be true and correct as of such date. 
  
 (b) Compliance with Obligations. The Sellers shall have performed and complied with all of their covenants set forth in this Agreement to be performed or complied with at or prior to Closing (singularly and in the aggregate) in all
material respects. 
  

 18 

 (c) Consents. All necessary authorizations and/or consents, permits or approvals of and filings
with any Governmental Authority or, subject to Section 1.2, any other third party (as applicable) relating to the consummation of the transactions contemplated herein shall have been obtained and made. Subject to Section 1.2, all
authorizations, consents and approvals set forth in Section 3.3 of the Disclosure Schedule shall have been obtained, and all consents reasonable requested by the Buyer in writing at least 15 days prior to the Closing Date, shall have been
obtained. 
  
 (d) No Adverse Litigation. There must not be
pending or threatened any action or proceeding by or before any Governmental Authority, arbitrator or mediator which shall seek to restrain, prohibit, invalidate or collect Damages arising out of the transactions contemplated hereby. 
  
 (e) Deliveries of the Sellers. The Sellers shall have delivered, or be
standing ready to deliver, to the Buyer, the documents required to be delivered by the Sellers pursuant to Section 2.3. 
  
 7.2 Conditions Precedent to Obligation of the Sellers. The obligations of the Sellers with respect to actions to be taken on the Closing Date are subject to the
satisfaction or waiver in writing on or prior to the Closing Date of all of the following conditions. The Sellers shall have the right to waive any condition not so satisfied. 
  
 (a) Accuracy of Representations and Warranties. Each representation and warranty set forth in Article 4 must be
accurate and complete in all material respects (except with respect to any provisions including the word “material” or words of similar import, with respect to which such representations and warranties must have been accurate and complete)
as of the Closing Date, as if made on the Closing Date, except that those representations and warranties that address matters only as of a particular date only shall be required to be true and correct as of such date. 
  
 (b) Compliance with Obligations. The Buyer must have performed and
complied with all its covenants and obligations set forth in this Agreement to be performed or complied with at or prior to Closing (singularly and in the aggregate) in all material respects. 
  
 (c) Consents. All necessary authorizations and/or consents, permits or
approvals of and filings with any Governmental Authority relating to the consummation of the transactions contemplated herein shall have been obtained and made. 
  

(d) No Adverse Litigation. There must not be pending or threatened any action or proceeding by or before any Governmental Authority, arbitrator
or mediator which shall seek to restrain, prohibit, invalidate or collect Damages arising out of the transactions contemplated hereby. 
  

 19 

 (e) Deliveries of the Buyer. The Buyer shall have delivered, or be standing ready to deliver, to
the Sellers, the documents required to be delivered by the Buyer pursuant to Section 2.3. 
  
 ARTICLE 8 
 TERMINATION 
  
 The Parties may terminate this Agreement as provided below: 
  
 (a) the Buyer and the Sellers may terminate this Agreement by mutual written
consent at any time prior to the Closing; 
  
 (b) the Buyer and
the Sellers may terminate this Agreement pursuant to Section 2.4(c) upon delivery of written notice to the Buyer; 
  
 (c) the Buyer or the Sellers may terminate this Agreement upon delivery of written notice if the Closing has not occurred prior to the Expiration Date,
provided that the Party delivering such notice shall not have caused such failure to close; 
  
 (d) the Buyer may terminate this Agreement by giving written notice to the Seller at any time prior to the Closing if the Sellers have breached any representation, warranty or covenant contained in this Agreement in
any material respect (except with respect to materiality for any provisions including the word “material” or words of similar import, in which case such termination rights will arise upon any breach), the Buyer has notified the Sellers of
such breach, and the breach has continued without cure for a period of 10 days after the notice of breach; and 
  
 (e) the Sellers may terminate this Agreement by giving written notice to the Buyer at any time prior to the Closing if the Buyer has breached any
representation, warranty or covenant contained in this Agreement in any material respect; (except with respect to materiality for any provisions including the word “material” or words of similar import, in which case such termination
rights will arise upon any breach), the Sellers have notified the Buyer of such breach, and the breach has continued without cure for a period of 10 days after the notice of breach. 
  
 ARTICLE 9 
 INDEMNIFICATION 
  
 9.1 Indemnification of the Buyer by the
Sellers. Each of the Sellers hereby jointly and severally agrees to pay and assume liability for, and does hereby agree to indemnify, protect, save and keep harmless the Buyer and its officers, directors, employees, contractors and members
(collectively, the “Buyer Indemnities”), from and against any and all liabilities, obligations, losses, damages, penalties, claims (including claims by any employee of the Sellers or any of its servants, crew or agents), actions, suits and
related costs, expenses and disbursements, including reasonable legal fees and expenses, of whatsoever kind and nature (collectively, “Losses”), imposed on, asserted against or 

  

 20 

 
incurred by the Buyer Indemnitees, in any way relating to or arising out of or alleged to be attributable to, related to or arising out of the following:

  
 (a) any inaccuracy in any representation or warranty of the
Sellers in this Agreement; 
  
 (b) any breach or nonfulfillment of
any covenant, agreement or other obligation of the Sellers; 
  
 (c) Encumbrances affecting the Purchased Assets arising prior to the Effective Time; and 
  
 (d) the item disclosed on Section 9.1 of the Disclosure Schedule. 
  
 9.2 Indemnification of the Sellers by the Buyer. The Buyer hereby agrees to pay and assume liability for, and does hereby agree to
indemnify, protect, save and keep harmless the Sellers and their officers, directors, employees, contractors and stockholders (the “Seller Indemnitees”), from and against any and all Losses imposed on, asserted against or incurred by the
Seller Indemnitees, in any way relating to or arising out of or alleged to be attributable to, related to or arising out of the following: 
  
 (a) any inaccuracy in any representation or warranty of the Buyer in this Agreement; 
  
 (b) any breach or nonfulfillment of any covenant, agreement or other obligation of the Buyer; or 
  
 (c) any Losses sustained by the Seller Indemnitees arising out of or related
to the ownership or operation of the Vessels after the Effective Time. 
  
 9.3
Notice and Defense of Third Party Claims. If any third party demand, claim, action or proceeding shall be brought or asserted under Section 9.1 or 9.2 against an indemnified party or any successor thereto (the “Indemnified
Person”) in respect of which indemnity may be sought under this Section 9.1 or 9.2 from an indemnifying person or any successor thereto (the “Indemnifying Person”), the Indemnified Person shall give prompt written notice thereof
to the Indemnifying Person who shall have the right to assume its defense, including the hiring of counsel reasonably satisfactory to the Indemnified Person and the payment of all expenses; except that any delay or failure to so notify the
Indemnifying Person shall relieve the Indemnifying Person of its obligations under Section 9.1 or 9.2 only to the extent, if at all, that it is prejudiced by reason of such delay or failure. The Indemnified Person shall have the right to employ
separate counsel in any of the foregoing actions, claims or proceedings and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the Indemnified Person unless both the Indemnified Person and the
Indemnifying Person are named as parties and the Indemnified Person shall in good faith determine that representation by the same counsel is inappropriate. In the event that the Indemnifying Person, within ten days after notice of any such action or
claim, does not assume the 

  

 21 

 
defense thereof, the Indemnified Personal shall have the right to undertake the defense, compromise or settlement of such action, claim or proceeding for the
account of the Indemnifying Person, subject to the right of the Indemnifying Person to assume the defense of such action, claim or proceeding with counsel reasonably satisfactory to the Indemnified Person at any time prior to the settlement,
compromise or final determination thereof. Anything in this Section 9.3 to the contrary notwithstanding, the Indemnifying Person shall not, without the Indemnified Person’s prior consent, settle or compromise any action or claim or consent
to the entry of any judgment with respect to any action, claim or proceeding for anything other than money damages paid by the Indemnifying Person. The Indemnifying Person may, without the Indemnified Person’s prior consent, settle or
compromise any such action, claim or proceeding or consent to entry of any judgment with respect to any such action or claim that requires solely the payment of money damages by the Indemnifying Person and that includes as an unconditional term
thereof the release by the claimant or the plaintiff of the Indemnified Person from all liability in respect of such action, claim or proceeding. The Indemnifying Party shall promptly reimburse the Indemnified Party for the amount of any judgment
rendered with respect to any third party demand, claim, action or proceeding and for all damages incurred by the Indemnified Party in connection with the defense of such demand, claim, action or proceedings. 
  
 9.4 Limitations on Indemnification. 
  
 Neither the Sellers, on one hand, nor the Buyer, on the other, shall have any
liability with respect to, or obligation to indemnify for, Losses under Article 9 hereof unless and to the extent that the aggregate amount of Losses for which such Party would be liable exceeds, on an aggregate basis, $450,000. Notwithstanding
anything in this Agreement to the contrary, the maximum indemnification liability of the Sellers, on the one hand, and the Buyer, on the other, shall not exceed $9,000,000 in the aggregate. Notwithstanding the foregoing, the limitations contained in
this Section 9.4 shall not apply to any indemnification obligation 
  
 (a) arising under Section 9.1(a) and resulting from a breach of the representations or warranties contained in Sections 3.1, 3.2, 3.3, 3.4, 3.5(a) and 3.7, 
  
 (b) arising under Section 9.2(a) and resulting from a breach of the representations or warranties contained in Sections
4.1, 4.2, 4.3 and 4.4, or 
  
 (c) arising under Sections 9.1(b),
9.1(c), 9.1(d), 9.2(b) or 9.2(c). 
  
 9.5 Survival. 
  
 The liability of the Sellers, on the one hand, or the Buyer, on the other,
for indemnification obligations arising under this Agreement shall be limited to claims for which an Indemnified Person delivers written notice to the Indemnifying Party on or before the second anniversary of the Closing Date; provided, however,
that any indemnification obligation (a) arising under Section 9.1(a) and resulting from a breach of 

  

 22 

 
the representations or warranties contained in Sections 3.1, 3.2, 3.3, 3.4, 3.5(a) and 3.7, (b) arising under Section 9.2(a) and resulting from a
breach of the representations or warranties contained in Sections 4.1, 4.2, 4.3 and 4.4, or (c) arising under Sections 9.1(b), 9.1(c), 9.2(b) or 9.2(c), shall not be so limited and shall survive indefinitely. 
  
 ARTICLE 10 
 DEFINITIONS 
  
 “Agreement” is defined in the preamble to this Agreement. 
  
 “Assigned Contracts” is defined in Section 1.2. 
  
 “Bills of Sale” is defined in Section 2.3(a). 
  
 “Business” is defined in the recitals to this Agreement. 
  
 “Business Day” means a day of the year on which banks are not required or authorized to be closed in the City
of Houston, Texas. 
  
 “Buyer” is defined in
the preamble to this Agreement. 
  
 “Buyer Indemnitees” is
defined in Section 9.1. 
  
 “Closing” is defined in
Section 2.1. 
  
 “Closing Date” is defined in
Section 2.1. 
  
 “Code” means the Internal Revenue
Code of 1986. 
  
 “Confidential Information” means
(a) any proprietary information concerning the Purchased Assets that is not already generally available to the public and (b) the material terms and provisions of this Agreement and the Exhibits and Disclosure Schedule hereto. 

 
 “D&C” is defined in the preamble to this Agreement.

  
 “Danos” is defined in the preamble to this Agreement.

  
 “Disclosure Schedule” means that group
of schedules referred to in this Agreement delivered separately by the Sellers to the Buyer concurrently with the execution and delivery of this Agreement but incorporated by reference into this Agreement. 
  
 “Effective Time” is defined in Section 2.1.

  
 “Encumbrances” means any Order, security interest,
lien, contract, covenant, community property interest, equitable interest, right of first refusal, maritime lien or restriction of any kind, including any restriction on use, voting, transfer, receipt of 

  

 23 

 
income or exercise of any other attribute of ownership, but shall not include the following: (a) liens for taxes or assessments (x) not yet due and
payable, (y) which are being contested in good faith through appropriate proceedings and which do not relate to amounts or obligations exceeding $10,000 in the aggregate or (z) for which reasonable reserves have been established and which
do not relate to amounts or obligations exceeding $10,000 in the aggregate, (b) mechanics’, materialmen’s, carriers’, workers’, repairers’ and other similar liens arising or incurred in the ordinary and usual course of
business relating to obligations as to which there is no material default or the validity of which are being contested in good faith or for which reasonable reserves have been established and which do not relate to amounts or obligations exceeding
$10,000 in the aggregate; provided, however, that any such lien arising in connection with the salvage and repair of the Vessel Andre Danos shall not be subject to any such limitations, and (d) such other encumbrances and encroachments which
are immaterial in nature and amount and which do not exceed $10,000 in the aggregate. 
  
 “Environmental Laws” means, as to any given asset or operation of the Sellers, all applicable Laws and Orders pertaining to protection of the environment in effect as of the Closing, including those pertaining to
solid waste, as defined by the U.S. Environmental Protection Agency Regulations at 40 C.F.R. Part 261, the Resource Conservation and Recovery Act, as amended, the Comprehensive Environmental Response, Compensation and Liability Act, as amended
(“CERCLA”), the Superfund Amendment and Reauthorization Act of 1986, as amended, and the Oil Pollution Act, 1990, as amended (“OPA”). 
  
 “Exchange Act” is defined in Section 5.4. 
  
 “Expiration Date” means November 15, 2005. 
  
 “Governmental Authority” means any legislature, agency, bureau, branch, department, division, commission, court,
tribunal, magistrate, justice, multi-national organization, quasi-governmental body or other similar recognized organization or body of any federal, state, county, municipal, local or foreign government or other similar recognized organization or
body exercising similar powers or authority. 
  
 “Hazardous
Material” means any substance which is listed or defined as a hazardous substance, hazardous constituent or solid waste pursuant to any Environmental Law, including “Hazardous Substances,” as defined in CERCLA, or
“oil” as defined in OPA and the regulations promulgated thereunder. 
  
 “Intellectual Property” is defined in Section 1.1. 
  
 “Independent Accountant” is defined in Section 1.4(b). 
  
 “Indemnified Person” is defined in
Section 9.3. 
  
 “Indemnifying
Person” is defined in Section 9.3. 
  

 24 

 “Knowledge” - 
  
 (a) with respect to the Seller, means the actual knowledge, after reasonable inquiry, of Hank Danos or Al Danos.

  
 (b) with respect to the Buyer, means the actual knowledge,
after reasonable inquiry, of its chief executive officer or its chief financial officer. 
  
 “Law” means any law (statutory, common, or otherwise), constitution, treaty, convention, ordinance, equitable principle, code, rule, regulation, executive order or other similar authority
enacted, adopted, promulgated or applied by any Governmental Authority, each as amended and now in effect. 
  
 “Liability” means any liability, duty, or obligation, whether known or unknown, asserted or unasserted, absolute or contingent, matured or unmatured, conditional or unconditional, latent or
patent, accrued or unaccrued, liquidated or unliquidated, or due or to become due, including any liability that could give rise to a lien, claim or encumbrance on a Purchased Asset. 
  
 “Loss” is defined in Section 9.1. 
  
 “Notice of Disagreement” is defined
in Section 1.4(b). 
  
 “Order” means any order,
ruling, decision, verdict, decree, writ, subpoena, mandate, precept, command, directive, consent, approval, award, judgment, injunction or other similar determination or finding by, before or under the supervision of any Governmental Authority,
arbitrator or mediator. 
  
 “Party” is defined in the preamble to this Agreement. 
  
 “Parties” is defined in the preamble to this Agreement. 
  
 “Permit” means any permit, license, certificate, approval, consent,
notice, waiver, franchise, registration, filing, accreditation or other similar authorization required by any Law or Governmental Authority. 
  
 “Person” means any individual, partnership, limited liability company, corporation, association, joint stock company, trust, joint venture, labor
organization, unincorporated organization or Governmental Authority. 
  
 “Plan” means any pension, profit sharing, 401(k), disability, medical, dental, severance pay, vacation pay, sick pay, stock purchase, stock option, deferred compensation, incentive compensation, fringe benefit,
stay-with-bonus, change of control agreement or other employee benefit plan, program or agreement, including, without limitation, any employee benefit plan as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), that is maintained or contributed to by the 

  

 25 

 
Sellers or any organization that is a member of a controlled group of organizations within the meaning of Code Sections 414(b), (c), (m) or (o) of
which either of the Sellers is a member (the “Controlled Group”) or under which either of the Sellers or any member of the Controlled Group has any liability or contingent liability, and which cover the employees of the Seller. 

 
 “Protocols of Delivery and
Acceptance” is defined in Section 2.3(a). 
  
 “Purchase Price” is defined in Section 1.3. 
  
 “Purchased Assets” is defined in Section 1.1. 
  
 “Records” is defined in Section 1.1. 
  
 “Revised Inventory List” is
defined in Section 1.4(a). 
  
 “Sale Taxes” is defined in Section 5.6. 
  
 “Securities Act” is defined in Section 6.7. 
  
 “Seller” is defined in the preamble to this Agreement. 
  
 “Seller Indemnities” is defined in
Section 9.2. 
  
 “Time Charter
Agreement” is defined in Section 2.3(a)(vii). 
  
 “Total Loss” is defined in Section 2.4. 
  
 “Transaction Documents” means this Agreement and the Bills of Sale. 
  
 “Unassigned Contract” is defined in
Section 1.2(c). 
  
 “Unavailable
Assets” is defined in Section 2.4(a). 
  
 “Vessel Crew” is defined in Section 3.10. 
  
 “Vessels” is defined in Section 1.1. 
  
 ARTICLE 11 
 MISCELLANEOUS 
  
 11.1 Entire Agreement. This Agreement,
together with the Exhibits and Disclosure Schedule hereto, and the certificates, documents, instruments and writings that are delivered pursuant hereto, constitutes the entire agreement and understanding of the Parties in respect of its subject
matters and supersedes all prior understandings, 

  

 26 

 
agreements, or representations by or among the Parties, written or oral, to the extent they relate in any way to the subject matter hereof or the
transactions contemplated hereby. 
  
 11.2 Successors. All of the terms,
agreements, covenants, representations, warranties and conditions of this Agreement are binding upon, and inure to the benefit of and are enforceable by, the Parties and their respective successors. 
  
 11.3 Assignments. No Party may assign either this Agreement or any of its rights,
interests or obligations hereunder without the prior written approval of the other Party. 
  
 11.4 Notices. All notices, requests, demands, claims and other communications hereunder will be in writing. Any notice, request, demand, claim or other communication hereunder shall be deemed duly given two
Business Days after it is sent by registered or certified mail, return receipt requested, postage prepaid, and addressed to the intended recipient as set forth below: 
  
 If to the Buyer: 
  

Hercules Liftboat Company, L.L.C. 
 2929 Briarpark Drive, Suite 435 
 Houston, Texas 77042 
  
 Attn: Steven A. Manz 
 Tel: (713) 952-4176 
 Fax: (713) 952-4342 
  
 with a copy to (which shall not constitute notice): 
 David L. Emmons 
 Baker Botts L.L.P. 
 2001 Ross Avenue, Suite 700 
 Dallas, Texas 75201 
  
 Tel: (214) 953-6414 
 Fax: (214) 661-4414 
  
  
 If to the Seller: 
  
 Danos & Curole Marine Contractors, L.L.C.

 P.O. Box 1460 
 Larose, LA 70373 
  
 Attn: Mr. Hank Danos 
 President and CEO 
  

 27 

 with a copy to (which shall not constitute notice): 
  
 Virginia Boulet 
 Adams and Reese, LLP 
 701 Poydras St., Suite 4500 
 New Orleans, LA. 70139 
  
 Attn: Virginia Boulet 
 Tel: (504) 585-0331 
 Fax: (504) 566-0210 
  
 Any Party may send
any notice, request, demand, claim, or other communication hereunder to the intended recipient at the address set forth above using any other means (including personal delivery, expedited courier, messenger service, telecopy, telex, ordinary mail,
or electronic mail), but no such notice, request, demand, claim or other communication shall be deemed to have been duly given unless and until it actually is received by the intended recipient. Any Party may change the address to which notices,
requests, demands, claims, and other communications hereunder are to be delivered by giving the other Party notice in the manner herein set forth. 
  
 11.5 Specific Performance. Each Party acknowledges and agrees that the other Party would be damaged irreparably if any provision of this Agreement is not performed
in accordance with its specific terms or is otherwise breached. Accordingly, each Party agrees that the other Party will be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically
this Agreement and its terms and provisions in any action instituted in any court of the United States or any state thereof having jurisdiction over the Parties and the matter in addition to any other remedy to which they may be entitled, at Law or
in equity. 
  
 11.6 Counterparts. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. 
  
 11.7 Headings. The article and section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement. 
  
 11.8 Governing Law. The Parties agree
that this Agreement will governed in accordance with the laws of the State of Texas, without regard to its conflicts of law rules. The Parties agree that all disputes in any way relating to, arising under, connected with, or incident to this
Agreement, shall be litigated, if at all, exclusively in the courts of the State of Texas, in Harris County, and, if necessary, the corresponding appellate courts. The Parties expressly submit themselves to jurisdiction in such courts. 

 

 28 

 11.9 Amendments and Waivers. No amendment, modification, replacement, termination or cancellation of any provision
of this Agreement will be valid, unless the same shall be in writing and signed by the Buyer and the Seller. No waiver by any Party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, may be
deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising because of any prior or subsequent such occurrence. 
  
 11.10 Severability. The provisions of this Agreement shall be deemed severable and the
invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof, provided that any provision of this Agreement that is invalid or unenforceable in any situation or in any jurisdiction
will not affect the enforceability of the remaining terms and provisions hereof or the enforceability of the offending term or provision in any other situation or in any other jurisdiction. 
  
 11.11 Expenses. Except as otherwise expressly provided in this Agreement, each Party
will bear its own costs and expenses incurred in connection with the preparation, execution and performance of this Agreement and the transactions contemplated hereby including all fees and expenses of agents, representatives, financial advisors,
legal counsel and accountants. 
  
 11.12 Construction. The Parties have
participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof
shall arise favoring or disfavoring any Party because of the authorship of any provision of this Agreement. Any reference to any federal, state, local or foreign Law shall be deemed also to refer to Law, as amended as of the date of the applicable
reference, and all rules and regulations promulgated thereunder, unless the context requires otherwise. The word “including” means “including without limitation.” The Parties intend that each representation, warranty and covenant
contained herein shall have independent significance. 
  
 11.13 Incorporation
of Exhibits and Disclosure Schedule. The Exhibits and the Disclosure Schedule identified in this Agreement are incorporated herein by reference and made a part hereof. 
  
 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written. 
  
 SIGNATURE PAGE TO FOLLOW 
  

 29 

			
	 DANOS & CUROLE MARINE CONTRACTORS, LLC

		
	BY:	 	/S/    GARRET HENRY
DANOS        
	 	 	 Garret Henry Danos, President

  

			
	 DANOS MARINE, INC.

		
	BY:	 	/S/    ALLEN JOSEPH
DANOS        
	 	 	 Allen Joseph Danos, President

  

			
	 HERCULES LIFTBOAT COMPANY, LLC

		
	By:	 	/S/    RANDALL D.
STILLEY        
	Name:	 	 Randall D. Stilley

	Title:	 	 Manager

  

	

	

	

  

 30 

 Schedule 1.1A 
 Purchased Assets 
 Vessels 
  

			
	 Vessel

	  	 Official
 Number

	 Eric Danos
	  	902606
	 Ana Danos
	  	1116895
	 Paul Danos
	  	1070562
	 Alyce Danos
	  	671967
	 Aimee Danos
	  	980381
	 Sarah David
	  	1049542
	 Marcel Danos
	  	964536
	 Andre Danos
	  	1032269

  

 31

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