Document:

REGISTRATION RIGHTS AGREEMENT

     THIS  REGISTRATION  RIGHTS  AGREEMENT (this "Agreement") is made as of
September 18,  2000, by and among  UNIFAB  INTERNATIONAL, INC., a Louisiana
corporation (the "Company") and the persons  listed  on  SCHEDULE  A hereto
(collectively, the "Purchasers").

                                R E C I T A L S:

     WHEREAS,  the  Purchasers  have  executed and delivered to the Company
that certain Stock Purchase Agreement (the  "Purchase  Agreement") pursuant
to which they will purchase in a private placement (the  "Offering") shares
of the $.01 par value per share common stock  (the "Common  Stock")  of the
Company (the "Stock Purchase");

     WHEREAS,  pursuant  to  the Purchase Agreement, the Company will issue
and sell to the Purchasers shares of Common Stock;

     WHEREAS,  as  an  inducement   to  and  condition  of  the  Purchasers
consummating  the  Stock  Purchase, the  Company  desires  to  provide  the
Purchasers with the registration  under  the  Securities  Act  of  1933, as
amended  (the  "Securities  Act"),  of  offers  and resales of Common Stock
purchased by the Purchasers in the Offering (the "Primary Shares");

     WHEREAS, the Company has entered into an engagement  letter  agreement
(the  "Placement  Agreement")  with  Morgan  Keegan  &  Company,  Inc. (the
"Placement Agent")  dated  June 15,  2000  pursuant  to which  the Company,
upon  closing  of  the transaction pursuant to the Purchase Agreement,  has
agreed to issue to the  Placement Agent warrants (the "Placement Warrants")
to purchase 60,000 shares of Common Stock (the "Placement Warrant Shares");
and

     WHEREAS, pursuant to the Placement Agreement the Company has agreed to
register under the Securities  Act the Placement Warrant Shares to the same
extent as the Primary Shares.

     NOW, THEREFORE, in consideration  of  the  recitals made above and the
mutual covenants and agreements stated herein, and  other good and valuable
consideration,   the   receipt   and   sufficiency  of  which  are   hereby
acknowledged, the parties agree as follows:

     1.   CERTAIN DEFINITIONS.  As used  in  this  Agreement, the following
terms shall have the following meanings:

     "BEST EFFORTS" means the taking of all commercially  reasonable  steps
to  cause or prevent any event or condition which would have been taken  in
similar  circumstances by a reasonably prudent business person engaged in a
similar business  for  the  advancement  or  protection of his own economic
interest in light of the consequences of failure  to  cause  or prevent the
occurrence of such event or condition.

     "CLOSING"  means  the  closing of the Stock Purchase pursuant  to  the
Purchase Agreement.

     "COMMISSION" means the Securities and Exchange Commission or any other
federal agency at the time administering the Securities Act.

<PAGE>

     "COMMON STOCK" has the meaning set forth in the recitals above.

     "COMPANY" has the meaning set forth in the preface above.

     "FORM S-3" means a registration  statement  on Form S-3 adopted by the
Commission under the Securities Act or any substantially  similar form from
time to time in effect.

     "HOLDER" means any holder of outstanding Registrable Securities  which
have not been sold to the public, but only if such holder is a Purchaser.

     "PENALTY WARRANT" has the meaning set forth in SECTION 9.11 below.

     "PENALTY  WARRANT  SHARES"  means shares of Common Stock issuable upon
exercise of the Penalty Warrant.

     "PRIMARY SHARES" has the meaning set forth in the recitals above.

     "PURCHASE AGREEMENT" has the meaning set forth in recitals above.

     "PURCHASERS" has the meaning set forth in the preface above.

     "REGISTER," "REGISTERED" and "REGISTRATION" refer to a registration of
the offer and sale of securities pursuant to the Securities Act effected by
preparing and filing a Registration Statement (defined below) in compliance
with  the  Securities  Act,  and  the  declaration   or   ordering  of  the
effectiveness of such registration statement.

     "REGISTRABLE SECURITIES" means (i) the Primary Shares  issued  to  the
Purchasers  pursuant  to  the  Purchase Agreement; (ii) the Penalty Warrant
Shares; (iii) the Placement Warrant  Shares;  and  (iii)  shares  of Common
Stock  or shares or units of other securities issued pursuant to any  stock
split, stock  dividend, reorganization, recapitalization, reclassification,
or other distribution  or  change  in  respect  of the shares of the Common
Stock.

     "REGISTRATION EXPENSES" means all expenses excluding  Selling Expenses
incurred  by  the  Company in effecting any Registration pursuant  to  this
Agreement and in complying  with SECTION 2 and SECTION 3 of this Agreement,
including, without limitation,  all  registration, qualification and filing
fees, printing expenses, escrow fees, fees and disbursements of counsel for
the Company and of a single special counsel  for  the Holders (if different
from the Company's counsel), blue sky fees and expenses, and the expense of
any  special audits incident to or required by any such  Registration  (but
excluding  the compensation of regular employees of the Company which shall
be paid in any event by the Company).

     "REGISTRATION  STATEMENT"  means  a  registration  statement on a form
prescribed by the Commission for use in registering the offer and resale of
securities under the Securities Act.

<PAGE>

     "SECURITIES ACT" means the Securities Act of 1933, as  amended, or any
similar  federal  statute  and the rules and regulations of the  Commission
thereunder, all as the same shall be in effect from time-to-time.

     "SELLING  EXPENSES"  means   all   underwriting   discounts,   selling
commissions  and stock transfer taxes applicable to the sale of Registrable
Securities pursuant  to  a Registration Statement prepared pursuant to this
Agreement.

     "STOCK PURCHASE" has the meaning set forth in the recitals above.

     2.   COVENANT TO EFFECT REGISTRATION.

     (a)  FILING OF SHELF  REGISTRATION  STATEMENT.   Subject to exceptions
and limitations described herein, the Company shall as  soon as practicable
cause a Registration Statement to be filed with the Commission on Form S-3,
if available, or, if Form S-3 is not available for the Registration  of the
Registrable   Securities,  on  such  form  as  may  be  prescribed  by  the
Commission, providing  for  the  resale  of  the  Primary  Shares  and  the
Placement  Warrant  Shares,  and,  if  the  Penalty  Warrant is issued, the
Penalty  Warrant  Shares.   Such Registration Statement shall  contain  all
appropriate undertakings necessary  to  comply  with  Rule  415  under  the
Securities  Act  pertaining to "shelf registration" or delayed offerings of
securities.  The Company shall use its Best Efforts to cause the Commission
to  declare such Registration  Statement  effective  and  to  maintain  the
effectiveness  of  such Registration Statement pursuant to SECTION 5 below.
In the event the Commission  will not permit such Registration Statement to
become effective because of the  inclusion  therein  of  Placement  Warrant
Shares and/or Penalty Warrant Shares that shall not have been issued at the
time effectiveness of the Registration Statement shall have been requested,
then  the  Company  shall  file an amendment to such Registration Statement
covering the resale of only  the  Primary  Shares  and  shall  use its Best
Efforts  to  cause  the  Commission  to  declare  such amended Registration
Statement effective and to maintain the effectiveness  thereof  pursuant to
SECTION 5 below.

     (b)  REGISTRATION   OF   OTHER   SECURITIES   IN   REGISTRATION.   Any
Registration   Statement  filed  pursuant  to  SECTION  2(A)  may   include
securities  of  the   Company   other  than  Registrable  Securities.   The
securities of the Company to be registered  may  include shares held by the
Holders, shares held by other shareholders, or shares  to  be issued by the
Company.

     (c)  BLUE  SKY  IN  REGISTRATION.   In  the  event of any Registration
pursuant  to  this  SECTION 2, the Company shall use its  Best  Efforts  to
register  and/or  qualify   the  securities  covered  by  the  Registration
Statement  under  such  other  securities   or   Blue   Sky  laws  of  such
jurisdictions as shall be reasonably requested by the Holders participating
in  the  Registration  and  as  may  be  reasonably  appropriate   for  the
distribution  of  such  Registrable  Securities,  provided,  however,  that
notwithstanding  anything  in  this Agreement to the contrary, in the event
any  jurisdiction in which the securities  shall  be  qualified  imposes  a
non-waivable  requirement  that  expenses  incurred  in connection with the
qualification   of   the   Registrable  Securities  be  borne  by   selling
shareholders, the Holders shall pay their pro rata share of such expenses.

<PAGE>

     3.   PIGGYBACK REGISTRATION.   The  provisions of this SECTION 3 shall
apply only with respect to Penalty Warrant  Shares  and  Placement  Warrant
Shares that are not Registered pursuant to SECTION 2 above.

     (a)  NOTICE OF PIGGYBACK REGISTRATION.  Subject to the exceptions  and
limitations  contained  herein,  if,  at any time or from time-to-time, the
Company shall Register any of its securities, either for its own account or
the account of a security holder or holders  other  than (i) a Registration
relating solely to employee benefit plans, or (ii) a  Registration relating
solely to a transaction described in Rule 145 under the Securities Act, the
Company  will:  (i)  promptly  give to each Holder written  notice  thereof
(which notice shall include a list  of  jurisdictions  in which the Company
intends to attempt to qualify such securities under applicable  Blue Sky or
other  state  securities laws), and (ii) include in such Registration  (and
any related registration and/or qualification under the applicable Blue Sky
or other state  securities laws), and in any Underwritten Offering pursuant
to such Registration,  all  Registrable  Securities  specified in a written
request  or requests delivered to the Company by any Holder  within  twenty
(20) days  after  receipt  of  such written notice from the Company by such
Holder.

     (b)  PIGGYBACK REGISTRATION IN UNDERWRITTEN OFFERINGS.

     (i)  NOTICE OF UNDERWRITTEN  OFFERING.   If  the Registration of which
the Company gives notice is for an Underwritten Offering  commenced  at the
election  of  the  Company  (and  not  pursuant  to  the exercise of rights
pursuant to SECTION 2 hereof), the Company shall so advise the Holders as a
part of the written notice given pursuant to SECTION 3(A).   In such event,
the  right  of  any Holder to Registration shall be conditioned upon  there
being  an  Underwritten  Offering,  and  the  inclusion  of  such  Holder's
Registrable  Securities  in  such Registration and Underwritten Offering to
the extent provided in and in  compliance with this SECTION 3.  All Holders
proposing to distribute their securities through such Underwritten Offering
shall  (together  with  the Company  and  any  other  holders  distributing
securities through such underwriting)  enter into an underwriting agreement
containing the terms and conditions agreed  to by the Company.  The Holders
shall have no right to participate in the selection  of underwriters for an
offering pursuant to this SECTION 3.2.

     (ii) MARKETING LIMITATION IN PIGGYBACK REGISTRATION.  In the event the
representative of the underwriters in any Underwritten Offering advises the
Company in writing that market factors (including, without  limitation, the
aggregate number of shares of Common Stock requested to be Registered,  the
general condition of the market, and the status of the persons proposing to
sell  securities  in the Underwritten Offering) require a limitation of the
shares to be offered and sold in the Underwritten Offering by persons other
than the Company, then  the  number  of  shares  to  be  excluded  from the
Underwritten  Offering  shall  be  determined  in  the following order: (i)
first,  securities  held  by  persons other than the Company  who  are  not
contractually entitled to include  securities in the Registration; and (ii)
second, securities that are contractually  entitled  to  be included in the
Registration including securities Registrable pursuant to  this  SECTION 3.
Any partial  reduction  in the number of  shares or  securities included in
the  Underwritten  Offering  affecting  any  of  the  two  (2)  classes set
forth in the  immediately  preceding  sentence  shall  be  allocated  among
the  persons  in  any  such  class  pro  rata,  as  nearly  as practicable,

<PAGE>

based  on  the  number  of Registrable  Securities held  by each person and
included in the Registration as  a percentage of the  aggregate Registrable
Securities held by all persons and included in the Registration.

     (iii) WITHDRAWAL IN PIGGYBACK REGISTRATION.   If  any Holder who shall
exercise  piggyback registration rights pursuant to this  SECTION  3  shall
disapprove of the proposed terms of any Underwritten Offering, he may elect
to withdraw therefrom by written notice to the Company and the underwriters
delivered at  least  two  (2)  days  prior  to  the  effective  date of the
Registration  Statement.   Any  Registrable  Securities or other securities
excluded or withdrawn from such Underwritten Offering  shall  be  withdrawn
from such Registration.

     (c)  BLUE  SKY  IN  PIGGYBACK  REGISTRATION.   In  the  event  of  any
Registration  of  Registrable Securities pursuant to SECTION 3, the Company
will use its best efforts to register and/or qualify the securities covered
by the Registration Statement under the securities or Blue Sky laws of such
jurisdictions as shall  be  reasonably  appropriate for the distribution of
the Registrable Securities.

     (d)  RIGHT TO TERMINATE REGISTRATION.   The  Company  shall  have  the
right  to  terminate  or  withdraw  any  Registration  initiated by it that
triggers piggyback registration rights pursuant to this  SECTION 3 prior to
the  effectiveness  of  such  Registration, whether or not any  Holder  has
elected to include securities in such registration.

     4.   EXPENSES OF REGISTRATION.   All Registration Expenses incurred in
connection with any registration pursuant  to SECTION 2 and SECTION 3 shall
be borne by the Company.  All Selling Expenses shall be allocated among the
persons  participating  in  any  Registration  based,  in  an  Underwritten
Offering, on the relative gross proceeds allocable to each such person and,
in  a  non-Underwritten  Offering, based on the Selling  Expenses  actually
incurred with respect to the  sale of Registrable Securities of each person
whose shares were included in the Registration.

     5.   REGISTRATION PROCEDURES.  The Company will keep each Holder whose
Registrable Securities are included  in  any  Registration pursuant to this
Agreement advised in writing as to the initiation  and  completion  of such
registration.   The  Company  shall  cause any registration statement filed
pursuant to SECTION 2(A) above to comply  with the requirements of Rule 415
and  shall use its best efforts to comply with  the  undertakings  required
thereby  to  qualify the registration as a "shelf registration" pursuant to
Rule 415.  At  its expense, the Company shall:  (a) use its best efforts to
keep such Registration  Statement  effective for so long as Holders who are
not affiliates of the Company whose  Registrable Securities are included in
the Registration Statement are subject  to  the  volume or manner of resale
restrictions set forth in Rule 144 under the Securities  Act  or  until the
Holder  or  Holders  have  completed  the  distribution  described  in  the
Registration  Statement  relating  thereto,  whichever  first  occurs;  (b)
furnish  such  number  of prospectuses (including preliminary prospectuses)
and other documents as a  Holder  from time-to-time reasonably may request;
(c)   prepare   and   file  with  the   Commission   such  amendments   and
supplements   to   such  Registration  Statement  and  the  prospectus used
in  connection  with  such  Registration  Statement  as  may  be  necessary
to  comply  with  the  provisions  of  the  Securities   Act  with  respect
to  the   disposition  of  all  Registrable  Securities  covered   by  such

<PAGE>

Registration  Statement;  (d)  notify each seller of Registrable Securities
covered  by  such  Registration  Statement at  any  time  when a prospectus
relating thereto is required  to  be delivered under  the Securities Act of
the happening of any event as a result of which the prospectus included  in
such  Registration   Statement, as  then  in  effect, includes   an  untrue
statement of a material fact or omits to state a material fact required  to
be  stated  therein  or  necessary  to  make  the  statements  therein  not
misleading or  incomplete in  the light of the circumstances then existing,
and at the request of any such seller, prepare and furnish to such seller a
reasonable number of  copies  of a  supplement to  or an  amendment of such
prospectus  as  may  be necessary so that,  as thereafter  delivered to the
purchasers of  such shares,  such prospectus  shall  not include  an untrue
statement of a material  fact or  omit to state a material fact required to
be  stated  therein  or  necessary  to  make  the  statements  therein  not
misleading  or incomplete in  the light of the  ircumstances then existing;
provided,  however,  that   if  the  Company  is  engaged  in  confidential
activities the disclosure  of  which the  Company  has  determined  in good
faith would be materially detrimental to the Company, the  Company need not
prepare and deliver any such supplement  or  amendment  for  a  period  not
exceeding 60 days; (e) cause  all  such  Registrable Securities  registered
on such Registration Statement to be listed on each securities  exchange or
automated  quotation service (including  the National Market  of The Nasdaq
Stock Market)  on  which  similar securities issued by the Company are then
listed; (f) provide a  transfer  agent  and registrar for  all  Registrable
Securities  registered  pursuant  to   such  Registration  Statement  and a
CUSIP number for all such Registrable Securities,  in  each case  not later
than the effective date of such Registration; (g) file with the Commission,
in  a timely manner, a Form 8-K (using Item 5 and not Item 9) or such other
appropriate  form  for  each  press  release  made  by the Company in which
it discloses material information; and (h) otherwise  use  its Best Efforts
to comply with all applicable rules and regulations of the Commission,  and
make available to its security holders, as soon as reasonably  practicable,
an earnings  statement  covering the period of  at least twelve months, but
not more  than  eighteen  months, beginning  with the first month after the
effective date of  the  Registration  Statement, which  earnings  statement
shall satisfy the provisions of  Section 11(a) of the  Securities Act shall
be reasonably required.

     6.   INFORMATION  FURNISHED  BY  HOLDER.   It  shall  be  a  condition
precedent  to  the  Company's  obligations  under  this Agreement that each
Holder  of Registrable Securities included in any Registration  furnish  to
the Company  such  information  regarding  such Holder and the distribution
proposed by such Holder or Holders as the Company may reasonably request in
writing and as shall be reasonably required.

     7.   INDEMNIFICATION.

     (a)  COMPANY'S  INDEMNIFICATION  OF  HOLDERS.    The   Company   shall
indemnify  and hold harmless each Holder, each of its agents, legal counsel
and accountants  and  each  (i)  person  controlling such Holder within the
meaning  of Section 15 of the Securities Act  ("Controlling  Person");  and
(ii) each underwriter and  each  Controlling  Person  of  such underwriter,
with   respect  to  which  Registration,  qualification  or  compliance  of
Registrable  Securities  has  been  effected  pursuant  to  this  Agreement
against  all  claims,  losses, damages, expenses or liabilities (or actions
in   respect   thereof)   to  the  extent  such  claims,  losses,  damages,
expenses   or   liabilities  (or  actions,  proceedings  or  settlements in
respect  thereto)  arise  out of  or are  based upon  any untrue  statement

<PAGE>

(or  alleged  untrue  statement)  of  a  material  fact  contained  in  any
prospectus or other document prepared by the Company (including any related
Registration  Statement  notification  or the like) incident  to  any  such
Registration, qualification or compliance, or are based on any omission (or
alleged  omission)  to state therein a material fact  required to be stated
therein or necessary to make the statements therein not misleading, or  any
violation by the Company of the Securities Act  or  any rule  or regulation
promulgated  under  the  Securities  Act  applicable  to  the  Company  and
relating  to action or inaction required of the Company in  connection with
any such Registration,  qualification  or compliance; and the  Company will
reimburse each such indemnified party and each Controlling Person,  for any
legal and  any  other  expenses  reasonably  incurred  in  connection  with
investigating,  defending  or  settling   any  such  claim,  loss,  damage,
liability or action; provided,  however,  that the  indemnity  contained in
this Section 7(a) shall not apply  to amounts paid  in  settlement  of  any
such  claim, loss,  damage,  liability or  action if settlement is effected
without the consent of the Company; and provided, further, that the Company
will not be liable in  any such  case to  the extent  that any such  claim,
loss,  damage,  liability  or expense  arises out  of or is based  upon any
untrue statement or omission based  upon written  information  furnished to
the Company by such  Holder, Controlling  Person of  such Holder and stated
to  be  specifically  for  use  therein,  in  which  case  such  Holder  or
Controlling Person of such Holder shall likewise indemnify the Company.

     (b)  INDEMNIFICATION   PROCEDURE.   Promptly  after  receipt   by   an
indemnified party under this SECTION 7 of notice of the commencement of any
action, such indemnified party will, if a claim in respect thereof is to be
made  against an indemnifying  party  under  this  SECTION  7,  notify  the
indemnifying  party  in  writing  of the commencement thereof and generally
summarize such action.  The indemnifying  party  shall  have  the  right to
participate  in and to assume the defense of such claim; provided, however,
that the indemnifying  party  shall  be  entitled to select counsel for the
defense  of  such  claim  with  the approval of  any  parties  entitled  to
indemnification,  which  approval  shall   not  be  unreasonably  withheld;
provided further, however, that if either party  reasonably determines that
there may be a conflict between the position of the Company and the Holders
in conducting the defense of such action, suit or  proceeding  by reason of
recognized claims for indemnity under this SECTION 7, then counsel for such
party  shall  be  entitled  to conduct the defense to the extent reasonably
determined by such counsel to  be necessary to protect the interest of such
party.   The  failure  to notify an  indemnifying  party  promptly  of  the
commencement of any such  action,  if  prejudicial  to  the  ability of the
indemnifying  party  to defend such action, shall relieve such indemnifying
party, to the extent so  prejudiced,  of  any  liability to the indemnified
party under this SECTION 7, but the omission so  to notify the indemnifying
party will not relieve such party of any liability that such party may have
to any indemnified party otherwise other than under this SECTION 7.

     8.   MARKET  STAND-OFF.   In  consideration  of the  granting  to  the
Purchaser   of   the  registration  rights  pursuant  to  this   Agreement,
each  of  them  agrees  that,  for  so  long  as  such  Holder holds Common
Stock,  except  as  permitted  by  SECTION  2  and  SECTION  3  above, such
Holder  will  not  sell,  transfer  or  otherwise  dispose  of,  including,
without  limitation,  through   the  use   of   any   put  or call  option,
short  sale  or  other  derivative arrangement,  shares  of   Common  Stock
in  the  ten  days  prior  to   the   effectiveness   of  any  Registration
Statement   (other   than   a   registration   statement  on  Form  S-8  or
Form  S-4,  or  any  successor  form)  with  respect  to  shares  of Common

<PAGE>

Stock pursuant to which such Common Stock will be offered for sale  to  the
public (except pursuant to the Registration Statements described in SECTION
2 or SECTION  3  above),  and  for  up  to one hundred eighty   (180)  days
following  the  effectiveness  of  such  Registration  Statement,  provided
that  the  underwriters of  any such offering shall reasonably request that
the Stockholders be bound by such restrictions.

     9.   MISCELLANEOUS.

     9.1  ASSIGNMENT.  Except as otherwise provided in this  Agreement, the
terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective successors and assigns of the parties  to  this
Agreement.

     9.2  THIRD PARTIES.  Nothing in this Agreement, express or implied, is
intended  to  confer  upon  any  party,  other  than  the  parties  to this
Agreement,  and  their  respective  successors  and  assigns,  any  rights,
remedies,  obligations or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

     9.3  GOVERNING LAW.  This Agreement shall be governed by and construed
under the laws  of  the  State  of New York in the United States of America
without giving effect to the conflicts of laws principles thereof.

     9.4  COUNTERPARTS.  This Agreement  may  be  executed in counterparts,
each of which shall be deemed an original, but all  of which together shall
constitute one and the same instrument.

     9.5  NOTICES.   All  notices,  requests,  demands, claims,  and  other
communications  hereunder  shall  be  in  writing and  shall  be  given  by
registered or certified mail, return receipt requested, postage prepaid, by
telecopier or by national overnight delivery  service, and addressed to the
intended recipient as set forth below

     IF TO THE COMPANY:

     UNIFAB International, Inc.
     5007 Port Road
     New Iberia, Lousiana 70562
     Attention: Chief Executive Officer
     Facsimile: (337) 367-8291

     IF TO PURCHASER:

     To the Purchasers listed on Schedule A,
     at the addresses listed on Schedule A.

<PAGE>

     Any notice given in the manner aforesaid shall  be deemed to have been
served,  and  shall  be  effective  for  all  purposes hereof  if  sent  by
registered or certified mail, on the earlier of  the  second  day following
the day on which it is posted or the date of its receipt by the party to be
notified,  if sent by telecopier, the day actually received as evidenced by
a  written  receipt  of  transmission  and   if  sent by overnight delivery
service, the day after such notice has been delivered  by the party to said
service.   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.

     9.6  SEVERABILITY.  If one or more provisions  of  this  Agreement are
held to be unenforceable under applicable law, portions of such provisions,
or  such  provisions in their entirety, to the extent necessary,  shall  be
severed from  this  Agreement,  and  the balance of this Agreement shall be
enforceable in accordance with its terms.

     9.7  AMENDMENT AND WAIVER.  Any provision  of  this  Agreement  may be
amended  or  waived with the written consent of the Company and the Holders
of at least a  majority  of  the  outstanding  shares  of  the  Registrable
Securities,  so  long  as the effect is to treat all Holders equally.   Any
amendment or waiver of this  Agreement shall require the written consent of
any Holder who is disproportionately  adversely  affected by such amendment
or  waiver.   Any  amendment  or  waiver effected in accordance  with  this
paragraph shall be binding upon each  Holder  of Registrable Securities and
the  Company.   In  addition,  the  Company may waive  performance  of  any
obligation owing to it, as to some or  all  of  the  Holders of Registrable
Securities,  or  agree to accept alternatives to such performance,  without
obtaining the consent  of  any  Holder  of  Registrable Securities.  In the
event that an underwriting agreement is entered  into  between  the Company
and  any  Holder,  and such underwriting agreement contains terms differing
from this Agreement,  as  to any such Holder the terms of such underwriting
agreement shall govern.

     9.8  EFFECT  OF  AMENDMENT   OR  WAIVER.   The  Purchasers  and  their
successors and assigns acknowledge  that by the operation of SECTION 9.7 of
this Agreement the holders of a majority  of  the  outstanding  Registrable
Securities, acting in conjunction with the Company, will have the right and
power  to  diminish or eliminate any or all rights or increase any  or  all
obligations pursuant to this Agreement.

     9.9  RIGHTS  OF  HOLDERS.  Each holder of Registrable Securities shall
have the absolute right to exercise or refrain from exercising any right or
rights that such holder  may  have  by reason of this Agreement, including,
without limitation, the right to consent  to  the waiver or modification of
any obligation under this Agreement, and such holder  shall  not  incur any
liability to any other holder of any securities of the Company as a  result
of exercising or refraining from exercising any such right or rights.

     9.10 DELAYS OR OMISSIONS.  No delay or omission to exercise any right,
power or remedy accruing to any party to this Agreement, upon any breach or
default of the other party, shall impair any such right, power or remedy of
such  non-breaching  party  nor shall it be construed to be a waiver of any
such  breach  or  default,  or an  acquiescence  therein,  or of  or in any

<PAGE>

similar breach or default thereafter occurring; nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or  default
theretofore or  thereafter  occurring.   Any  waiver,  permit,  consent  or
approval of any kind or character on the part of any party of any breach or
default under this Agreement, or any waiver on the part of any party of any
provisions  or  conditions  of  this Agreement, must be made in writing and
shall  be  effective only to the extent  specifically  set  forth  in  such
writing.  All remedies, either under this Agreement, or by law or otherwise
afforded to any holder, shall be cumulative and not alternative.

     9.11 FAILURE  TO  EFFECT  REGISTRATION.   If the Company shall fail to
file the Registration Statement referred to in SECTION  2(A)  hereof within
thirty (30) days after the issuance of the Primary Shares, then the Company
will issue to the Purchasers warrants to purchase Common Stock  aggregating
ten  percent (10 %) of the number of Primary Shares issued in the  Offering
(the "Penalty  Warrants").  The Penalty Warrants, if and when issued, shall
be in substantially  the  form  attached  hereto as EXHIBIT 1.  The Company
shall issue and deliver to the Purchasers any Penalty Warrants on the first
day (or first business day thereafter) after the end of the thirty (30) day
period described above.

<PAGE>

IN WITNESS WHEREOF, the parties hereto have  executed  this Agreement as of
the day and year first above written.

                                   COMPANY:

                                   UNIFAB INTERNATIONAL, INC.

                                   By:  /s/ Dailey J. Berard
                                      -------------------------------
                                   Title:  Chief Executive Officer
                                         ----------------------------

                                   PURCHASER:

                                   ____________________________________
                                   [Name of Purchaser]

                                   By:
                                      -------------------------------
                                   Title:
                                         ----------------------------
<PAGE>

IN WITNESS WHEREOF, the parties hereto have  executed  this Agreement as of
the day and year first above written.

                                   COMPANY:

                                   UNIFAB INTERNATIONAL, INC.

                                   By:
                                      -------------------------------
                                   Title:
                                         ----------------------------

                                   PURCHASER:

                                    /s/ Theodore W. Price
                                   ----------------------------------
                                   [Name of Purchaser]

                                   By:  Theodore W. Price
                                      -------------------------------
                                   Title:  Managing Director  -
                                         ----------------------------
                                           Chief Investment Officer
<PAGE>

IN WITNESS WHEREOF, the parties hereto have  executed  this Agreement as of
the day and year first above written.

                                   COMPANY:

                                   UNIFAB INTERNATIONAL, INC.

                                   By:
                                      -------------------------------
                                   Title:
                                         ----------------------------

                                   PURCHASER:

                                   Columbus Capital Partners, L.P.
                                   ----------------------------------
                                   [Name of Purchaser]
                                   Columbus Capital Management, LLC
                                   General Partner

                                   By:  /s/ Matthew D. Ockner
                                      -------------------------------
                                   Title:  Managing Member
                                         ----------------------------

<PAGE>

IN WITNESS WHEREOF, the parties hereto have  executed  this Agreement as of
the day and year first above written.

                                   COMPANY:

                                   UNIFAB INTERNATIONAL, INC.

                                   By:
                                      -------------------------------
                                   Title:
                                         ----------------------------

                                   PURCHASER:

                                    Franklin Street Trust
                                   ----------------------------------
                                   [Name of Purchaser]

                                   By:  /s/ Carol E. Manzon
                                      -------------------------------
                                   Title:  Secretary/Treasurer
                                         ----------------------------

<PAGE>

IN WITNESS WHEREOF, the parties hereto have  executed  this Agreement as of
the day and year first above written.

                                   COMPANY:

                                   UNIFAB INTERNATIONAL, INC.

                                   By:
                                      -------------------------------
                                   Title:
                                         ----------------------------

                                   PURCHASER:

                                    Lone Wolf Trading, LLC
                                   ----------------------------------
                                   [Name of Purchaser]

                                   By: /s/  Richard C. McKenzie, Jr.
                                      -------------------------------
                                  (Maria Prawdzik as Attorney in Fact)
                                   Title:  Sole Member
                                         ----------------------------

<PAGE>

IN WITNESS WHEREOF, the parties hereto have  executed  this Agreement as of
the day and year first above written.

                                   COMPANY:

                                   UNIFAB INTERNATIONAL, INC.

                                   By:
                                      -------------------------------
                                   Title:
                                         ----------------------------

                                   PURCHASER:

                                    Jupiter Fund/Beacon Management
                                   ----------------------------------
                                   [Name of Purchaser]

                                   By:  /s/ Brian M. Sites
                                      -------------------------------
                                   Title:  Partner
                                         ----------------------------

<PAGE>

IN WITNESS WHEREOF, the parties hereto have  executed  this Agreement as of
the day and year first above written.

                                   COMPANY:

                                   UNIFAB INTERNATIONAL, INC.

                                   By:
                                      -------------------------------
                                   Title:
                                         ----------------------------

                                   PURCHASER:

                                    Trusco Capital Management
                                   ----------------------------------
                                   [Name of Purchaser]

                                   By:  /s/ Jason Ling
                                      -------------------------------
                                   Title:  Portfolio Assistant
                                         ----------------------------

<PAGE>

IN WITNESS WHEREOF, the parties hereto have  executed  this Agreement as of
the day and year first above written.

                                   COMPANY:

                                   UNIFAB INTERNATIONAL, INC.

                                   By:
                                      -------------------------------
                                   Title:
                                         ----------------------------

                                   PURCHASER:

                                    Dynamis Fund, LP
                                   ----------------------------------
                                   [Name of Purchaser]

                                   By:  Frederic S. Bocock
                                      -------------------------------
                                   Title:  Managing Member
                                         ----------------------------
                                           Dynamis Advisers, LLC/General
                                             Partner

<PAGE>

                                Schedule A

                            List of Purchasers

   Mentor Investment Group

   Franklin Street Trust Co.

   Beacon Management

   SSCM, LLC

   Lone Wolfe Trading LLC

   Trusco Capital Management

   Columbus Capital Partners, L.P.

<PAGE>
                                 EXHIBIT 1

     THIS  WARRANT  (THIS  "WARRANT")  HAS  NOT  BEEN  REGISTERED UNDER THE
SECURITIES  ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),  OR  APPLICABLE
STATE SECURITIES  LAWS.   THIS  WARRANT  MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED  OR  HYPOTHECATED  IN  THE  ABSENCE OF  AN  EFFECTIVE  REGISTRATION
STATEMENT AS TO THIS WARRANT UNDER SAID ACT AND APPLICABLE STATE SECURITIES
LAWS  OR  AN  OPINION  OF  COUNSEL  REASONABLY   SATISFACTORY   TO   UNIFAB
INTERNATIONAL, INC. (THE "COMPANY") THAT SUCH REGISTRATION IS NOT REQUIRED.

     Warrant Certificate No. _________

     ____________ ___, 2000

                   WARRANT TO PURCHASE SHARES OF COMMON STOCK

                                       OF

                           UNIFAB INTERNATIONAL, INC.

          This  certifies  that  [     ], or its successors or assigns (the
"HOLDER"), is entitled, subject to the terms  set  forth below, at any time
during the Exercise Period (defined in Section 2 hereof)  to  purchase from
UNIFAB  INTERNATIONAL, INC., a Louisiana corporation, up to _______________
(____________)  fully  paid and nonassessable shares (the "WARRANT SHARES")
of the Company's Common  Stock,  par  value  $.01  per  share  (the "COMMON
STOCK"), at the purchase price per Warrant Share of the greater  of book or
market  value  per  share  of  the  Common  Stock  on  the  date hereof, as
reasonably determined by the Company (the "PURCHASE PRICE").  The number of
Warrant  Shares  issuable  upon  exercise of this Warrant and the  Purchase
Price shall be subject to adjustment  from  time  to  time  as  provided in
Section 5 hereto.

     1.   THIS  WARRANT.  This Warrant is issued to the Holder pursuant  to
Section 9.11 of that  certain  Registration  Rights  Agreement, dated as of
September 18,  2000, by and among the persons listed on  the signature page
thereto  (the  "REGISTRATION  RIGHTS  AGREEMENT").  This Warrant  does  not
entitle the Holder to any rights as a stockholder of the Company, except as
set forth herein.

     2.   EXERCISE.  During the period  beginning  on  the  date hereof and
ending on the second (2nd) anniversary hereof (the "EXERCISE PERIOD"), this
Warrant  may  be  exercised  at  the  Purchase Price.  The Warrant  may  be
exercised at any time on any business day  for  all  or part of the Warrant
Shares  issuable hereunder by surrendering this Warrant  at  the  principal
office of the Company at 5007 Port Road, New Iberia, Louisiana 70562 (or at
such other  office  of  the Company in the United States as the Company may
designate from time to time  by  notice in  writing  to  the  Holder), with
the   subscription  form  attached  hereto  fully  executed, together  with

<PAGE>

payment in cash or immediately available funds in an  amount  equal  to the
Purchase Price multiplied by the number  of Warrant Shares as to  which the
Warrant is being exercised.

     3.   PARTIAL  EXERCISE.   This  Warrant  may, in accordance  with  the
provisions of this Section 3, be exercised for less than the full number of
Warrant  Shares.   Upon  any  partial  exercise,  this   Warrant  shall  be
surrendered  and  a new Warrant of the same tenor and for the  purchase  of
that number of Warrant  Shares  not  purchased  upon  such partial exercise
shall be issued by the Company to the Holder.  A Warrant shall be deemed to
have been exercised immediately prior to the close of business  on the date
of its surrender for exercise as provided above, and the person entitled to
receive the Warrant Shares issuable upon exercise shall be treated  for all
purposes as the holder of such shares of record as of the close of business
on  such  date.   As  soon as practicable on or after such date, and in any
event within five (5) business days, the Company shall issue and deliver to
the person or persons entitled  to receive the Warrant Shares a certificate
or certificates for the full number  of  Warrant  Shares issuable upon such
exercise.

     4.   NET ISSUE EXERCISE.  Notwithstanding any provisions herein to the
contrary, if the Fair Market Value of one share of  Common Stock is greater
than  the  Purchase Price for one share of Common Stock  (at  the  date  of
calculation,  as  set  forth below), in lieu of exercising this Warrant for
cash, the Holder may elect  to  receive shares of Common Stock equal to the
value (as determined below) of this  Warrant  (or the portion thereof being
canceled)  by  surrender  of this Warrant at the principal  office  of  the
Company,  together  with  the   properly   endorsed   Warrant  Certificate,
substantially in the form as attached hereto, in which  event  the  Company
shall  issue  to  the Holder that number of shares of Common Stock computed
using the following formula:

                               WS = WCS (FMV-PP)
                                    ------------
                                      FMV

     WHERE:

     WS   equals the number of Warrant Shares to be issued to the Holder

     WCS  equals the number of shares of Common  Stock purchasable under
          the  Warrant  or,  if  only a  portion of the Warrant is being
          exercised,  the  portion of the Warrant being canceled (at the
          date of such calculation)

     FMV  equals the Fair Market Value of one share of Common Stock  (at
          the date of such calculation)

     PP   equals the per  share Purchase Price (as adjusted to the date
          of such calculation) of the Warrant

          As used in this Section 4,  the  term "FAIR MARKET VALUE" of
each  Share  as  of  any  date  shall  be  the best bid  price  posted
in   respect  of  the  Common  Stock  in  the  Nasdaq  Stock  Market's
automated dealer quotation  system  at  the  close  of  trading on the

<PAGE>

day prior to such  exercise, or, if the Common Stock shall not then be
so quoted,  Fair Market  Value  shall be determined as follows: (A) if
the parties hereto can agree on the  Fair  Market  Value,  such agreed
upon value shall  constitute the Fair Market Value; (B) if the parties
cannot reach an agreement as to the Fair Market Value within  five (5)
business days from the onset of  negotiations, then such parties shall
jointly  appoint  an appraiser to determine the Fair Market Value; (C)
if the parties cannot  agree upon the selection of an appraiser within
five (5) business days after such five (5) day period, then each party
shall deliver to the other a list of three (3) appraisers on or before
the third (3rd) business  day  immediately following the expiration of
said five (5) day period, each party  shall  select one appraiser from
the other party's list and notify such other party of its selection on
or  before  the  fifth  (5th) business day immediately  following  the
expiration of the three (3)  day  period; (D) if either party does not
deliver to the other party a list of  appraisers  within the three-day
period  or  deliver  its  selection  of the appraiser from  the  other
party's list within the five (5) day period,  then the first appraiser
listed on the other party's list shall be deemed  to have been jointly
selected  to  determine  the  Fair Market Value; (E) if  both  parties
timely select an appraiser from  the  other party's list, then the two
appraisers so selected shall jointly select  a  third appraiser, which
third appraiser shall independently calculate the Fair Market Value on
or before the forty-fifth (45th) day immediately following the date on
which it was selected as an appraiser.  Any determination  of the Fair
Market Value made in accordance with the terms  hereinabove  set forth
shall be final and binding on the parties hereto.

     5.   ADJUSTMENTS.

     5.1  ADJUSTMENTS TO WARRANT RIGHTS. The number of Warrant  Shares
for  which  Warrants  are  exercisable, and the Purchase Price of such
shares shall be subject to adjustment  from  time to time as set forth
in this Section 5.

     5.2  STOCK DIVIDENDS, SUBDIVISIONS AND COMBINATIONS.  If  at  any
time the Company shall:

     (a)  take  a  record  of  the holders of its Common Stock for the
     purpose of entitling them to  receive  a  dividend payable in, or
     other distribution of, additional shares of Common Stock,

          (b)  subdivide  its outstanding shares of  Common  Stock  into  a
     larger number of shares of Common Stock, or

          (c) combine its outstanding shares of Common Stock into a smaller
     number of shares of Common Stock,

     then  (i)  the  number of  Warrant  Shares  for  which  a  Warrant  is
exercisable  immediately   prior  to  the  occurrence  of  any  such  event
shall  be adjusted  to   equal  the  number  of  shares  of   Common  Stock
which  a  record  holder  of  the  same  number  of  shares of Common Stock
for which a Warrant is  exercisable  immediately  prior  to the  occurrence
of   such  event   would   own  or  be   entitled  to  receive   after  the
happening of such event  and (ii) the  Purchase  Price   immediately  prior

<PAGE>

to the  occurrence of such event shall be adjusted to equal the product  of
the Purchase Price multiplied by a fraction, the numerator  of  which shall
be  the  number  of  Warrant  Shares  for  which  a Warrant  is exercisable
immediately prior  to the adjustment and the denominator  of which shall be
the number of Warrant Shares for which a Warrant is exercisable immediately
after such adjustment.

     5.3  OTHER  DIVIDENDS  AND DISTRIBUTIONS. If the Company shall make or
fix a record date for the holders  of  Common  Stock  entitled to receive a
dividend or other distribution payable in securities of  the  Company other
than  shares of Common Stock, then lawful and adequate provision  shall  be
made so  that  Holder  shall  be  entitled  to receive upon exercise of the
Warrants,  for the aggregate Purchase Price in  effect  prior  thereto,  in
addition to  the  number of Warrant Shares immediately theretofore issuable
upon exercise of the  Warrants,  the  kind  and number of securities of the
Company which Holder would have owned and been  entitled to receive had the
Warrants been exercised immediately prior to that  date  (pro  rated in the
case of any partial exercise).

     5.4  RECLASSIFICATION, EXCHANGE AND SUBSTITUTION. If the Common  Stock
is  changed  into  the same or a different number of shares of any class or
classes of stock, whether  by  reclassification,  exchange, substitution or
otherwise  (other  than  a  subdivision  or combination  of  shares,  stock
dividend or a reorganization, recapitalization,  merger,  consolidation  or
sale  of assets, each as provided for elsewhere in this Section 5) then the
Holder  of  the  Warrants shall be entitled to receive upon exercise of the
Warrants, in lieu  of  the  Warrant Shares immediately theretofore issuable
upon exercise of the Warrants,  for  the aggregate Purchase Price in effect
prior  thereto,  the kind and amount of  stock  and  other  securities  and
property receivable  upon  such reclassification, exchange, substitution or
other change, which Holder would  have  been  entitled  to  receive had the
Warrants   been  exercised  immediately  prior  to  such  reclassification,
exchange, substitution  or  change  (pro  rated  in the case of any partial
exercise).

     5.5  LIQUIDATION.  If the Company shall, at any  time,  prior  to  the
expiration of the Warrants,  dissolve,  liquidate  or  wind up its affairs,
Holder  shall  have  the  right,  but not the obligation, to  exercise  the
Warrants.  Upon such exercise, Holder  shall  have the right to receive, in
lieu of the shares of Common Stock that Holder  otherwise  would  have been
entitled to receive upon such exercise, the same kind and amount of  assets
as  would  have  been  issued,  distributed or paid to Holder upon any such
dissolution, liquidation or winding  up  with  respect  to  such  shares of
Common Stock had Holder been the holder of record of such shares of  Common
Stock  receivable upon exercise of the Warrants on the date for determining
those entitled  to  receive any such distribution. If any such dissolution,
liquidation or winding  up  results  in  any cash distribution to Holder in
excess of the aggregate Purchase Price, Holder  may,  at  Holder's  option,
exercise  the  Warrants  without making payment of the applicable aggregate
Purchase Price and, in such  case,  the Company shall, upon distribution to
Holder, consider the applicable aggregate  Purchase Price to have been paid
in full, and in making settlement to Holder shall deduct an amount equal to
the applicable aggregate Purchase Price from the amount payable to Holder.

     5.6  REORGANIZATIONS,  MERGERS,  CONSOLIDATIONS  OR  SALES  OF ASSETS.
If   any   of    the    following   transactions    (each,    a    "SPECIAL
TRANSACTION")  shall   become   effective:  (a)  a  capital  reorganization
or     recapitalization    (other    than     a    dividend     or    other
distribution,  subdivision,   combination,  reclassification,  substitution
or     exchange    of   shares   provided    for    elsewhere    in    this

<PAGE>

Section  5), (b) a  consolidation  or  merger of  the Company with and into
another entity  (where  the  Company  is  not  the surviving corporation or
where there is a change  in,  or  distribution  with respect to, the Common
Stock),  or  (c) a sale or conveyance of all or substantially  all  of  the
Company's assets,  then,  as a condition of the Special Transaction, lawful
and adequate provision shall  be  made so that Holder shall thereafter have
the right to purchase and receive upon exercise of the Warrants, in lieu of
the Warrant Shares immediately theretofore  issuable  upon  exercise of the
Warrants, for the aggregate Purchase Price in effect immediately  prior  to
such  consummation,  such  shares of stock, other securities, cash or other
assets ("OTHER PROPERTY") as may be issued or paid pursuant to the terms of
such Special Transaction to the holders of shares of Common Stock for which
such Warrants could have been  exercised  immediately prior to such Special
Transaction (pro rated in the case of any partial  exercise). In connection
with  any Special Transaction, appropriate provision  shall  be  made  with
respect  to  the  rights  and  interests  of  Holder  to  the  end that the
provisions  of  the  Warrants (including without limitation provisions  for
adjustment of the Purchase  Price and the number of Warrant Shares issuable
upon the exercise of the Warrants),  shall  thereafter  be  applicable,  as
nearly  as may be practicable, to any Other Property thereafter deliverable
upon the  exercise  of  the  Warrants.   The  Company  shall not effect any
Special Transaction unless prior to, or simultaneously with,  the  closing,
the  successor  entity (if other than the Company), if any, resulting  from
such consolidation  or  merger  or  the  entity acquiring such assets shall
assume by a written instrument executed and  mailed  by  certified  mail or
delivered to Holder at the address of Holder appearing on the books of  the
Company,  the  obligation  of  the Company or such successor corporation to
deliver to Holder such Other Property,  as in accordance with the foregoing
provisions, which Holder shall have the right to purchase.

     5.7  NOTICE. Whenever the Warrants or  the  number  of  Warrant Shares
issuable  hereunder  is to be adjusted as provided herein or a dividend  or
distribution  (in  cash,   stock   or   otherwise  and  including,  without
limitation, any distributions under Section  5.5)  is to be declared by the
Company,  or a definitive agreement with respect to a  Special  Transaction
has been entered  into, the Company shall forthwith cause to be sent to the
Holder at the last address of the Holder shown on the books of the Company,
by first-class mail, postage prepaid, at least 5 business days prior to the
record date specified  in  Section  5.7(a)(i) below or at least 10 business
days before the date specified in Section  5.7(b)  and  Section  5.7(a)(ii)
below,  a  notice  stating in reasonable detail the relevant facts and  any
resulting adjustments  and  the  calculation  thereof,  if  applicable, and
stating (if applicable):

          (a) the date to be used to determine (i) which holders  of Common
     Stock   will   be   entitled  to  receive  notice  of  such  dividend,
     distribution, subdivision or combination (the "RECORD DATE"), and (ii)
     the  date as of which  such  dividend,  distribution,  subdivision  or
     combination  shall  be  made;  or, if a record is not to be taken, the
     date as of which the holders of  Common Stock of record to be entitled
     to such dividend, distribution, subdivision  or  combination are to be
     determined  (provided,  that  in  the event the Company  institutes  a
     policy of declaring cash dividends  on  a  periodic basis, the Company
     need only provide the relevant information called  for in this Section
     5.7(a)  with  respect to the first cash dividend payment  to  be  made
     pursuant to such  policy  and  thereafter  provide  only notice of any
     changes  in  the  amount  or the frequency of any subsequent  dividend
     payments), or

<PAGE>

          (b) the date on which a Special Transaction is expected to become
     effective, and the date as  of  which  it  is expected that holders of
     Common Stock of record shall be entitled to  exchange  their shares of
     Common  Stock  for  securities  or  other  property  deliverable  upon
     consummation of the Special Transaction (the "EXCHANGE DATE").

     5.8  FRACTIONAL INTERESTS. The Company shall not be required  to issue
fractions of shares of Common Stock upon the exercise of a Warrant.  If any
fraction of a share of Common Stock would be issuable upon the exercise  of
a  Warrant,  the  Company shall, upon such issuance, purchase such fraction
for an amount in cash equal to the current value of such fraction, computed
on the basis of the Fair Market Value (as defined in Section 4) on the last
business day prior to the date of exercise.

6.        PAYMENT OF  TAXES.   All  Warrant Shares shall be validly issued,
fully paid and nonassessable and free  of  claims of preemptive rights, and
the Company shall pay all issuance taxes and  similar  governmental charges
that may be imposed in respect of the issue or delivery  thereof, but in no
event shall the Company pay a tax on or measured by the net  income or gain
attributed  to  such exercise.  Notwithstanding the foregoing, the  Company
shall not be required to pay any tax which may be payable in respect of any
transfer involved in the issuance and delivery of any certificate in a name
other than that of  the  Holder,  and  the Company shall not be required to
issue or deliver any such certificate unless  and  until  the  Holder shall
have  paid  to the Company the amount of such tax or shall have established
to the satisfaction of the Company that such tax has been paid.

7.        TRANSFER  AND  EXCHANGE.   This  Warrant shall be transferable in
whole or in part, except as otherwise  provided herein and except that  the
Holder  hereof represents that it  is  acquiring  this  Warrant for its own
account  and  for  the  purpose  of  investment and  not with a view to any
distribution  or  resale thereof within the  meaning of the Securities Act.
The Holder further agrees that it  will not sell, assign or transfer any of
this Warrant unless this Warrant shall have been registered  for sale under
the  Securities  Act or until the Company  shall have received from counsel
for the  Holder an opinion to the effect that  the  proposed  sale or other
transfer  of this  Warrant  by  the Holder  may be  effected  without  such
registration.   The Holder  acknowledges that, in taking this  unregistered
Warrant,  it must  continue to bear the economic risk of its investment for
an indefinite period of time  because of the fact  that  such  Warrant  has
not  been  registered  under  the Securities Act and further realizes  that
such Warrant cannot be sold  unless it is subsequently registered under the
Securities Act or  an  exception  from  such registration is available. The
Holder also acknowledges that  appropriate legends reflecting the status of
this Warrant under the  Securities Act may be placed on the  face  of  this
Warrant certificate  at  the  time  of  their transfer and delivery  to the
Holder  hereof.   The transfer of  Warrant Shares issuable upon exercise of
this Warrant is governed by Section 10 hereof.

8.        LOSS   OR   MUTILATION.    On   receipt  of  evidence  reasonably
satisfactory to the Company of the  loss, theft,  destruction or mutilation
of this Warrant or a replacement hereof and, in  the case of any such loss,
theft  or  destruction,  on delivery of an indemnity agreement  or security
reasonably  satisfactory  in form and amount to the Company or, in the case
of any such mutilation, on surrender  and cancellation of this Warrant or a
replacement, the Company at its  expense  will  execute and deliver in lieu
thereof, a new warrant of like tenor.

<PAGE>

9.        RESERVATION OF STOCK.  The Company will at all times reserve  and
keep  available,  solely  for issuance and delivery on the exercise of this
Warrant, all Warrant Shares from time to time issuable upon the exercise of
this Warrant and all shares  of the Common Stock from time to time issuable
upon the conversion of the Warrant  Shares  issuable  upon  the exercise of
this Warrant.

10.       NEGOTIABILITY.  This Warrant is issued upon the following  terms,
to all of which the Holder, by the taking hereof, consents and agrees:

          (a)  title to this Warrant may be transferred by endorsement  (by
     the Holder  executing  the  form  of assignment at the end hereof) and
     delivery in the same manner as in the  case of a negotiable instrument
     transferable by endorsement and delivery  and any person in possession
     of this Warrant properly endorsed is authorized  to  represent himself
     as absolute owner hereof and is empowered to transfer  absolute  title
     hereto  by  endorsement  and  delivery hereof to a bona fide purchaser
     hereof for value; each prior taker  or  owner waives and renounces all
     of his equities or right in this Warrant  in  favor  of each such bona
     fide  purchaser,  and  each  such  bona  fide purchaser shall  acquire
     absolute title hereto and to all rights represented hereby;

          (b)  until  this  Warrant is transferred  on  the  books  of  the
     Company, the Company may  treat  the  registered  Holder hereof as the
     absolute owner hereof for all purposes, notwithstanding  any notice to
     the contrary; and

          (c) the Holder, by its acceptance hereof, represents  that  it is
     acquiring  this  Warrant for investment purposes only and that it does
     not have any present  intention  to  resell this Warrant or to sell or
     distribute any Warrant Shares for which this Warrant may be exercised.

11.       NOTICES.  All notices and other communications  from  the Company
to the Holder shall be mailed by first class registered or certified  mail,
postage prepaid, or sent by express overnight courier service or electronic
facsimile  transmission  (with  a copy by mail) at the address furnished to
the Company in writing by the last  Holder  of  this Warrant who shall have
furnished an address to the Company in writing.

12.       CHANGE, WAIVER.  This Warrant and any term hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by
the party against which enforcement of such change,  waiver,  discharge  or
termination is sought.

13.       HEADINGS.   The  headings  in  this  Warrant  are for purposes of
convenience of reference only and shall not be deemed to  constitute a part
hereof.

14.       LAW GOVERNING.  This Warrant shall be construed and  enforced  in
accordance  with  and  governed  by  the internal laws of New York, without
reference to the conflicts of laws provisions in effect therein.

<PAGE>

     IN WITNESS WHEREOF, the Company has  executed  this Warrant under seal
as of the date first written above.

     ATTEST:                         UNIFAB INTERNATIONAL, INC.

     By: _________________________   By:______________________

         Name:                          Name:

         Title:                         Title:

<PAGE>
                             FORM OF EXERCISE

                   (TO BE SIGNED ONLY ON EXERCISE OF WARRANT)

TO:  UNIFAB INTERNATIONAL, INC.

          The  undersigned,  the  holder  of the Warrant  attached  hereto,
hereby irrevocably elects to exercise this  Warrant  for,  and  to purchase
thereunder, ___________ shares of the Common Stock of UNIFAB INTERNATIONAL,
INC., and herewith makes payment of $______________ therefor, and  requests
that  the  certificates  for  such  shares  be  issued  in the name of, and
delivered     to     __________________________     whose     address    is
____________________________________.

     Dated: ________________

     ___________________________________________________

    (SIGNATURE MUST CONFORM TO NAME OF HOLDER  AS SPECIFIED
     ON THE FACE OF THE WARRANT)

     ___________________________________________________

     (ADDRESS)

<PAGE>
                            FORM OF ASSIGNMENT

                   (TO BE SIGNED ONLY ON TRANSFER OF WARRANT)

     For  value  received,  the  undersigned  hereby  sells,  assigns,  and
transfers  unto ________________________________ the right  represented  by
the Warrant  attached hereto to purchase ___________ shares of Common Stock
of UNIFAB INTERNATIONAL,  INC.  to  which  the  within Warrant relates, and
appoints ____________________________________ Attorney-In-Fact  to transfer
such  right  on the books of UNIFAB INTERNATIONAL, INC. with full power  of
substitution in the premises.

     Dated: ________________

     ___________________________________________________

    (SIGNATURE MUST CONFORM TO NAME OF HOLDER  AS SPECIFIED
     ON THE FACE OF THE WARRANT)

     ___________________________________________________

     (ADDRESS)

     Signed in the presence of:

     _________________________________REGISTRATION RIGHTS AGREEMENT

     THIS  REGISTRATION  RIGHTS  AGREEMENT (this "Agreement") is made as of
September 26,  2000, by and among  UNIFAB  INTERNATIONAL, INC., a Louisiana
corporation  (the  "Company"),  the persons listed  on  SCHEDULE  A  hereto
(collectively, the "Purchasers"),  and  Morgan  Keegan & Company, Inc. (the
"Placement Agent").

                                R E C I T A L S:

     WHEREAS,  the Purchasers have executed and delivered  to  the  Company
that certain Stock  Purchase  Agreement (the "Purchase Agreement") pursuant
to which they will purchase in  a private placement (the "Offering") shares
of the $.01 par value per share common  stock   (the "Common Stock") of the
Company (the "Stock Purchase");

     WHEREAS, pursuant to the Purchase Agreement,  the  Company  will issue
and sell to the Purchasers shares of Common Stock;

     WHEREAS,   as  an  inducement  to  and  condition  of  the  Purchasers
consummating the  Stock  Purchase,  the  Company  desires  to  provide  the
Purchasers  with  the  registration  under  the  Securities Act of 1933, as
amended  (the  "Securities  Act"), of offers and resales  of  Common  Stock
purchased by the Purchasers in the Offering (the "Primary Shares");

     WHEREAS, the Company has  entered  into an engagement letter agreement
(the "Placement Agreement") with the Placement  Agent  dated  June 15, 2000
pursuant  to  which the Company has agreed to issue to the Placement  Agent
warrants (the "Placement  Warrants")  to  purchase  an  aggregate of 60,000
shares of Common Stock (the "Placement Warrant Shares"); and

     WHEREAS, pursuant to the Placement Agreement the Company has agreed to
register under the Securities Act the Placement Warrant Shares  to the same
extent as the Primary Shares.

     NOW,  THEREFORE, in consideration of the recitals made above  and  the
mutual covenants  and agreements stated herein, and other good and valuable
consideration,  the   receipt   and   sufficiency   of   which  are  hereby
acknowledged, the parties agree as follows:

     1.   CERTAIN  DEFINITIONS.  As used in this Agreement,  the  following
terms shall have the following meanings:

     "BEST EFFORTS"  means  the taking of all commercially reasonable steps
to cause or prevent any event  or  condition which would have been taken in
similar circumstances by a reasonably  prudent business person engaged in a
similar business for the advancement or  protection  of  his  own  economic
interest  in  light of the consequences of failure to cause or prevent  the
occurrence of such event or condition.

     "CLOSING"  means  the settlement of the Stock Purchase pursuant to the
Purchase Agreement.

<PAGE>

     "COMMISSION" means the Securities and Exchange Commission or any other
federal agency at the time administering the Securities Act.

     "COMMON STOCK" has the meaning set forth in the recitals above.

     "COMPANY" has the meaning set forth in the preface above.

     "FORM S-3" means a  registration  statement on Form S-3 adopted by the
Commission under the Securities Act or any  substantially similar form from
time to time in effect.

     "HOLDER" means any holder of outstanding  Registrable Securities which
have not been sold to the public, but only if such holder is a Purchaser or
the Placement Agent.

     "PRIMARY SHARES" has the meaning set forth in the recitals above.

     "PURCHASE AGREEMENT" has the meaning set forth in recitals above.

     "PURCHASERS" has the meaning set forth in the preface above.

     "REGISTER," "REGISTERED" and "REGISTRATION" refer to a registration of
the offer and sale of securities pursuant to the Securities Act effected by
preparing  and  filing  a  Registration Statement in  compliance  with  the
Securities Act, and the declaration  or  ordering  of  the effectiveness of
such registration statement.

     "REGISTRABLE SECURITIES" means (i) the Primary Shares  issued  to  the
Purchasers  pursuant  to the Purchase Agreement; (ii) the Placement Warrant
Shares; and (iii) shares  of  Common  Stock  or  shares  or  units of other
securities   issued   pursuant   to   any   stock  split,  stock  dividend,
reorganization, recapitalization, reclassification,  or  other distribution
or change in respect of the shares of the Common Stock.

     "REGISTRATION EXPENSES" means all expenses excluding  Selling Expenses
incurred  by  the  Company in effecting any Registration pursuant  to  this
Agreement and in complying  with SECTION 2 and SECTION 3 of this Agreement,
including, without limitation,  all  registration, qualification and filing
fees, printing expenses, escrow fees, fees and disbursements of counsel for
the Company and of a single special counsel  for  the Holders (if different
from the Company's counsel), blue sky fees and expenses, and the expense of
any  special audits incident to or required by any such  Registration  (but
excluding  the compensation of regular employees of the Company which shall
be paid in any event by the Company).

     "REGISTRATION  STATEMENT"  means  a  registration  statement on a form
prescribed by the Commission for use in registering the offer and resale of
securities under the Securities Act.

     "SECURITIES ACT" has the meaning set forth in the recitals above.

     "SELLING   EXPENSES"   means   all  underwriting  discounts,   selling
commissions and stock transfer taxes  applicable to the sale of Registrable
Securities pursuant to a Registration Statement  prepared  pursuant to this
Agreement.
                                        -2-

<PAGE>

     "STOCK PURCHASE" has the meaning set forth in the recitals above.

     2.   COVENANT TO EFFECT REGISTRATION.

     (a)  FILING  OF  SHELF REGISTRATION STATEMENT.  Subject to  exceptions
and limitations described herein, the Company shall use its Best Efforts to
cause a Registration Statement to be filed with the Commission on Form S-3,
if available, or, if Form  S-3 is not available for the Registration of the
Registrable  Securities,  on  such   form  as  may  be  prescribed  by  the
Commission,  within thirty (30) days after  the  issuance  of  the  Primary
Shares (but in  any  event as soon as practicable) providing for the resale
of the Primary Shares  and the Placement Warrant Shares.  Such Registration
Statement shall contain  all  appropriate  undertakings necessary to comply
with Rule 415 under the Securities Act pertaining  to  "shelf registration"
or delayed offerings of securities.  The Company shall use its Best Efforts
(i)  to  cause  the  Commission  to  declare  such  Registration  Statement
effective within (x) 120 days after the issuance of the  Primary  Shares or
(y) if the Commission elects to review the Registration Statement,  45 days
following  the  Company's  receipt  of initial comments from the Commission
with respect to such Registration Statement,  whichever  is later, and (ii)
to  maintain the effectiveness of such Registration Statement  pursuant  to
SECTION  5  below.   In  the  event  the  Commission  will  not permit such
Registration Statement to become effective because of the inclusion therein
of  Placement  Warrant Shares that shall not have been issued at  the  time
effectiveness of the Registration Statement shall have been requested, then
the Company shall file an amendment to such Registration Statement covering
the resale of only  the  Primary  Shares  and shall use its Best Efforts to
cause  the  Commission  to  declare  such  amended  Registration  Statement
effective and to maintain the effectiveness  thereof  pursuant to SECTION 5
below.

     (b)  REGISTRATION   OF   OTHER   SECURITIES   IN  REGISTRATION.    Any
Registration  Statement  filed  pursuant  to  SECTION  2(A)   may   include
securities  of  the  Company other than Registrable Securities, so long  as
such inclusion could not  reasonably  be  expected  to impair the Company's
ability to meet its obligation under SECTION 2(A) above  (no such inclusion
pursuant to the Registration Rights Agreement dated September  26,  2000 to
which  the  Company  is  party  being  subject  to  such expectation).  The
securities of the Company to be registered may include  shares  held by the
Holders, shares held by other shareholders, or shares to be issued  by  the
Company.

     (c)  BLUE   SKY  REGISTRATION.   In  the  event  of  any  Registration
pursuant to this SECTION  2,  the  Company  shall  use  its Best Efforts to
register   and/or  qualify  the  securities  covered  by  the  Registration
Statement  under   such   other   securities  or  Blue  Sky  laws  of  such
jurisdictions as shall be reasonably requested by the Holders participating
in  the  Registration  and  as  may  be  reasonably   appropriate  for  the
distribution  of  such  Registrable  Securities,  provided,  however,  that
notwithstanding anything in this Agreement to the contrary,  in  the  event
any  jurisdiction  in  which  the  securities  shall be qualified imposes a
non-waivable  requirement that expenses incurred  in  connection  with  the
qualification  of   the   Registrable   Securities   be  borne  by  selling
shareholders, the Holders shall pay their pro rata share  of  such expenses
or  withdraw  the  request  that  securities be qualified for sale in  such
jurisdiction.

     3.   PIGGYBACK REGISTRATION.   The  provisions of this SECTION 3 shall
apply only with respect to Placement Warrant Shares that are not Registered
pursuant to SECTION 2 above.

                                        -3-

<PAGE>

     (a)  NOTICE OF PIGGYBACK REGISTRATION.   Subject to the exceptions and
limitations  contained herein, if, at any time or  from  time-to-time,  the
Company shall Register any of its securities, either for its own account or
the account of  a  security holder or holders other than (i) a Registration
relating solely to employee  benefit plans, or (ii) a Registration relating
solely to a transaction described in Rule 145 under the Securities Act, the
Company will: (i) promptly give  to  each  Holder  written  notice  thereof
(which  notice  shall  include a list of jurisdictions in which the Company
intends to attempt to qualify  such securities under applicable Blue Sky or
other state securities laws), and  (ii)  include  in such Registration (and
any related registration and/or qualification under the applicable Blue Sky
or other state securities laws), and in any underwritten  offering pursuant
to  such Registration, all Registrable Securities specified  in  a  written
request  or  requests  delivered to the Company by any Holder within twenty
(20) days after receipt  of  such  written  notice from the Company by such
Holder.

     (b)  PIGGYBACK REGISTRATION IN UNDERWRITTEN OFFERINGS.

     (i)  NOTICE OF UNDERWRITTEN OFFERING.  If  the  Registration  of which
the  Company gives notice is for an underwritten offering commenced at  the
election  of  the  Company  (and  not  pursuant  to  the exercise of rights
pursuant to SECTION 2 hereof), the Company shall so advise the Holders as a
part of the written notice given pursuant to SECTION 3(A).   In such event,
the  right  of  any Holder to Registration shall be conditioned upon  there
being  an  underwritten  offering,  and  the  inclusion  of  such  Holder's
Registrable  Securities  in  such Registration and underwritten offering to
the extent provided in and in  compliance with this SECTION 3.  All Holders
proposing to distribute their securities through such underwritten offering
shall  (together  with  the Company  and  any  other  holders  distributing
securities through such underwriting)  enter into an underwriting agreement
containing the terms and conditions agreed  to by the Company.  The Holders
shall have no right to participate in the selection  of underwriters for an
offering pursuant to this SECTION 3.2.

     (ii) MARKETING LIMITATION IN PIGGYBACK REGISTRATION.  In the event the
representative of the underwriters in any underwritten offering advises the
Company in writing that market factors (including, without  limitation, the
aggregate number of shares of Common Stock requested to be Registered,  the
general condition of the market, and the status of the persons proposing to
sell  securities  in the underwritten offering) require a limitation of the
shares to be offered and sold in the underwritten offering by persons other
than the Company, then  the  number  of  shares  to  be  excluded  from the
underwritten  offering  shall  be  determined  in  the following order: (i)
first,  securities  held  by  persons other than the Company  who  are  not
contractually entitled to include  securities in the Registration; and (ii)
second,  securities  held  by persons who  are  contractually  entitled  to
include  securities in the Registration  including  Registrable  Securities
pursuant to  this  SECTION 3. Any partial reduction in the number of shares
or securities included  in  the  underwritten offering affecting any of the
two (2) classes set forth in the immediately  preceding  sentence  shall be
allocated  among  the  persons  in  any  such  class pro rata, as nearly as
practicable, based on the number of Registrable  Securities  held  by  each
such person and proposed to be included in the Registration as a percentage
of  the  aggregate  Registrable  Securities  held  by  all such persons and
proposed to be included in the Registration.

     (iii) WITHDRAWAL  IN  PIGGYBACK  REGISTRATION.    If  any  Holder  who
shall     exercise    piggyback    registration    rights    pursuant    to
this  SECTION    3    shall   disapprove   of   the   proposed   terms   of

                                        -4-
<PAGE>

any underwritten offering, he may elect to  withdraw therefrom  by  written
notice to the Company and the underwriters delivered at  least two (2) days
prior to the effective date of the Registration Statement.  Any Registrable
Securities  or   other   securities  excluded   or   withdrawn  from   such
underwritten offering shall be withdrawn from such Registration.

     (c)  BLUE  SKY  IN  PIGGYBACK  REGISTRATION.   In  the  event  of  any
Registration of Registrable  Securities  pursuant to SECTION 3, the Company
will use its Best Efforts to register and/or qualify the securities covered
by the Registration Statement under the securities or Blue Sky laws of such
jurisdictions as shall be reasonably appropriate  for  the  distribution of
the Registrable Securities.

     (d)  RIGHT  TO  TERMINATE  REGISTRATION.  The Company shall  have  the
right  to  terminate or withdraw any  Registration  initiated  by  it  that
triggers piggyback  registration rights pursuant to this SECTION 3 prior to
the effectiveness of  such  Registration,  whether  or  not  any Holder has
elected to include securities in such registration.

     4.   EXPENSES OF REGISTRATION.  All Registration Expenses  incurred in
connection with any registration pursuant to SECTION 2 and SECTION  3 shall
be borne by the Company.  All Selling Expenses shall be allocated among the
persons  participating  in  any  Registration  based,  in  an  underwritten
offering, on the relative gross proceeds allocable to each such person and,
in  a  non-underwritten  offering,  based  on the Selling Expenses actually
incurred with respect to the sale of Registrable  Securities of each person
whose shares were included in the Registration.

     5.   REGISTRATION PROCEDURES.  The Company will keep each Holder whose
Registrable Securities are included in any Registration  pursuant  to  this
Agreement  advised  in  writing as to the initiation and completion of such
Registration.  The Company  shall  cause  any  Registration Statement filed
pursuant to SECTION 2(A) above to comply with the  requirements of Rule 415
and  shall  use  its Best Efforts to comply with the undertakings  required
thereby to qualify  the  registration as a "shelf registration" pursuant to
Rule 415.  At its expense,  the Company shall:  (a) use its Best Efforts to
keep such Registration Statement  continuously  effective  for  so  long as
Holders  who are not affiliates of the Company whose Registrable Securities
are included  in  the  Registration  Statement are subject to the volume or
manner of resale restrictions set forth  in  Rule  144 under the Securities
Act  or  until  the  Holder  or  Holders  have  completed the  distribution
described in the Registration Statement relating  thereto,  whichever first
occurs;  (b)  furnish  such  number  of prospectuses (including preliminary
prospectuses) and other documents as a  Holder from time-to-time reasonably
may request; (c) use its Best Efforts to  prepare  and  file as promptly as
practicable  with  the Commission such amendments and supplements  to  such
Registration Statement  and  the  prospectus  used  in connection with such
Registration Statement as may be necessary to comply with the provisions of
the  Securities  Act  with  respect to the disposition of  all  Registrable
Securities covered by such Registration  Statement;  (d) notify each seller
of  Registrable Securities covered by such Registration  Statement  at  any
time  when  a prospectus relating thereto is required to be delivered under
the Securities  Act  of the happening of any event as a result of which the
prospectus included in  such  Registration  Statement,  as  then in effect,
includes  an  untrue  statement  of  a  material  fact or omits to state  a
material  fact  required  to  be stated therein or necessary  to  make  the
statements  therein not misleading  or  incomplete  in  the  light  of  the
circumstances then existing, and at the request of any such seller, use its
Best Efforts  to  prepare  and  furnish  as

                                -5-

<PAGE>

promptly as practicable to  such  seller a reasonable number of copies of a
supplement to or an amendment of such prospectus as may be necessary so
that, as thereafter delivered to the purchasers  of such shares, such
prospectus shall  not include  an  untrue statement of  a  material fact or
omit to state a material fact required to be  stated  therein or  necessary
to  make  the statements therein not misleading or  incomplete in the light
of the circumstances then existing; provided,  however, that if the Company
is  engaged  in confidential activities the disclosure of which the Company
has determined in good faith would  be  materially detrimental to the
Company,  the  Company  need  not prepare and  deliver  any such supplement
or amendment for a period not exceeding 45 days in any 12 month period; (e)
use  its Best Efforts to take any and all such actions as may be reasonably
necessary or advisable to enable the underwriter, if any, of the securities
being sold to consummate the disposition  of the Registrable Securities; (f)
use its Best Efforts to obtain the withdrawal of any  order  suspending the
effectiveness of such Registration Statement or any post-effective
amendment  thereto  or of any order  suspending  or  preventing the use  of
any  related prospectus or  suspending the qualification of any Registrable
Securities  included  in  such  Registration  Statement  for  sale  in  any
jurisdiction  at  the  earliest  practicable  date;  (g)   cause  all  such
Registrable  Securities  registered on such  Registration  Statement  to be
listed  on  each   securities  exchange  or   automated  quotation  service
(including  the  National   Market  of  The  Nasdaq  Stock Market) on which
similar securities issued by the  Company  are  then listed; (h) provide  a
transfer  agent and  registrar for  all  Registrable  Securities registered
pursuant  to  such  Registration  Statement and a CUSIP number for all such
Registrable Securities,  in each case not later than the effective  date of
such Registration;  (i) file with the  Commission,  in  a timely manner,  a
Form  8-K  (using Item 5 and not Item 9) or such other appropriate form for
each press release made  by  the  Company  in which it  discloses  material
information;  (j)  otherwise  use  its  Best  Efforts  to  comply  with all
applicable rules and regulations of  the  Commission, and make available to
its  security  holders,  as  soon  as  reasonably  practicable, an earnings
statement covering the period of at least twelve months, but  not more than
eighteen months, beginning  with  the  first month after the effective date
of the Registration Statement, which earnings   statement shall satisfy the
provisions of Section 11(a) of the Securities Act.

     6.   INFORMATION  FURNISHED  BY  HOLDER.   It  shall  be  a  condition
precedent to the Company's  obligations  under  this  Agreement  that  each
Holder  of  Registrable  Securities included in any Registration furnish to
the Company such information  regarding  such  Holder  and the distribution
proposed by such Holder or Holders as the Company may reasonably request in
writing and as shall be reasonably required.

     7.   INDEMNIFICATION.

     (a)  COMPANY'S   INDEMNIFICATION   OF  HOLDERS.   The  Company   shall
indemnify and hold harmless each Holder,  each  of  its  agents, investment
advisers,  legal  counsel  and accountants and each (i) person  controlling
such  Holder  within the meaning  of  Section  15  of  the  Securities  Act
("Controlling Person");  and  (ii)  each  underwriter  and each Controlling
Person   of   such   underwriter,   with  respect  to  which  Registration,
qualification or compliance of Registrable  Securities  has  been  effected
pursuant to this Agreement against all claims, losses, damages, expenses or
liabilities (or actions, proceedings or settlements in respect thereof)  to
the  extent  such  claims,  losses,  damages,  expenses  or liabilities (or
actions, proceedings or settlements in respect thereto) arise out of or are
based upon any untrue statement (or alleged untrue statement) of a material
fact contained in any prospectus or other document prepared  by the Company

                                        -6-
<PAGE>

(including any related Registration Statement or the like) incident  to any
such  Registration,  qualification  or  compliance,  or  are  based  on any
omission (or alleged omission) to state therein a material fact required to
be  stated  therein  or  necessary  to  make  the  statements  therein  not
misleading,  or  any  violation by the Company of the Securities Act or any
rule or regulation promulgated  under  the Securities Act applicable to the
Company  and relating to action or inaction  required  of  the  Company  in
connection with any such Registration, qualification or compliance; and the
Company will  reimburse  each  such  indemnified party and each Controlling
Person,  for  any  legal  and  any other expenses  reasonably  incurred  in
connection with investigating, defending  or settling any such claim, loss,
damage,  liability  or  action;  provided,  however,   that  the  indemnity
contained  in  this  Section  7(a)  shall  not  apply  to amounts  paid  in
settlement  of  any  such  claim,  loss,  damage,  liability or  action  if
settlement  is effected without the consent of the Company  (which  consent
shall not be  unreasonably  withheld);  and  provided,  further,  that  the
Company  will  not  be  liable in any such case to the extent that any such
claim, loss, damage, liability  or  expense  arises out of or is based upon
any untrue statement or omission based upon written  information  furnished
to  the  Company by such Holder, or Controlling Person of such Holder,  and
stated to  be  specifically  for  use therein, in which case such Holder or
Controlling Person of such Holder shall likewise indemnify the Company.

     (b)  INDEMNIFICATION  PROCEDURE.    Promptly   after   receipt  by  an
indemnified party under this SECTION 7 of notice of the commencement of any
action, such indemnified party will, if a claim in respect thereof is to be
made  against  an  indemnifying  party  under  this  SECTION 7, notify  the
indemnifying  party  in writing of the commencement thereof  and  generally
summarize such action.   The  indemnifying  party  shall  have the right to
participate in and to assume the defense of such claim; provided,  however,
that  the  indemnifying  party shall be entitled to select counsel for  the
defense  of  such claim with  the  approval  of  any  parties  entitled  to
indemnification,   which  approval  shall  not  be  unreasonably  withheld;
provided further, however,  that if either party reasonably determines that
there may be a conflict between the position of the Company and the Holders
in conducting the defense of  such  action, suit or proceeding by reason of
recognized claims for indemnity under this SECTION 7, then counsel for such
party shall be entitled to conduct the  defense  to  the  extent reasonably
determined by such counsel to be necessary to protect the interest  of such
party  and  the  indemnified  party  shall  be  entitled to indemnification
therefor.   The failure to notify an indemnifying  party  promptly  of  the
commencement  of  any  such  action,  if  prejudicial to the ability of the
indemnifying party to defend such action, shall  relieve  such indemnifying
party,  to  the  extent so prejudiced, of any liability to the  indemnified
party under this SECTION  7, but the omission so to notify the indemnifying
party will not relieve such party of any liability that such party may have
to any indemnified party otherwise other than under this SECTION 7.

     8.   [INTENTIONALLY OMITTED]

     9.   MISCELLANEOUS.

     9.1  ASSIGNMENT.  Except  as otherwise provided in this Agreement, the
terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective successors  and  assigns of the parties to this
Agreement.

                                        -7-
<PAGE>

     9.2  THIRD PARTIES.  Nothing in this Agreement, express or implied, is
intended  to  confer  upon  any  party,  other than  the  parties  to  this
Agreement,  and  their  respective  successors  and  assigns,  any  rights,
remedies, obligations or liabilities  under or by reason of this Agreement,
except as expressly provided in this Agreement.

     9.3  GOVERNING LAW.  This Agreement shall be governed by and construed
under the laws of the State of New York  in  the  United  States of America
without giving effect to the conflicts of laws principles thereof.

     9.4  COUNTERPARTS.   This  Agreement may be executed in  counterparts,
each of which shall be deemed an  original, but all of which together shall
constitute one and the same instrument.

     9.5  NOTICES.   All  notices, requests,  demands,  claims,  and  other
communications  hereunder shall  be  in  writing  and  shall  be  given  by
registered or certified mail, return receipt requested, postage prepaid, by
telecopier or by  national overnight delivery service, and addressed to the
intended recipient as set forth below

     IF TO THE COMPANY:

     UNIFAB International, Inc.
     5007 Port Road
     New Iberia, Lousiana 70562
     Attention: Chief Executive Officer
     Facsimile: (337) 367-8291

     IF TO PURCHASER:

     To the Purchasers listed on Schedule A,
     at the addresses listed on Schedule A.

     IF TO THE PLACEMENT AGENT:

     Morgan Keegan & Company, Inc.
     50 N. Front Street
     Memphis, Tennessee 38103
     Attention:  Kimble Jenkins
     Facsimile: (901) 579-4979

     Any notice  given  in  the   manner  aforesaid   shall  be  deemed  to
have  been served, and  shall  be effective  for  all  purposes  hereof  if
sent   by   registered   or  certified   mail,   on  the  earlier  of   the
second   day   following   the   day   on   which   it  is  posted  or  the
date   of   its  receipt  by  the  party  to  be   notified,  if   sent  by
telecopier, the day actually received as  evidenced by a written receipt of

                                        -8-
<PAGE>

transmission  and  if  sent  by overnight  delivery  service, the day after
such notice has been delivered by the party to said service.  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.

     9.6  SEVERABILITY.   If  one or more provisions of this Agreement  are
held to be unenforceable under applicable law, portions of such provisions,
or such provisions in their entirety,  to  the  extent  necessary, shall be
severed  from  this Agreement, and the balance of this Agreement  shall  be
enforceable in accordance with its terms.

     9.7  AMENDMENT  AND  WAIVER.   Any  provision of this Agreement may be
amended or waived with the written consent  of  the Company and the Holders
of  at  least  a  majority  of the outstanding shares  of  the  Registrable
Securities, so long as the effect  is  to  treat  all Holders equally.  Any
amendment or waiver of this Agreement shall require  the written consent of
any Holder who is disproportionately adversely affected  by  such amendment
or  waiver.   Any  amendment  or  waiver  effected in accordance with  this
paragraph shall be binding upon each Holder  of  Registrable Securities and
the  Company.   In  addition,  the  Company  may waive performance  of  any
obligation  owing to it, as to some or all of the  Holders  of  Registrable
Securities, or  agree  to  accept alternatives to such performance, without
obtaining the consent of any  Holder  of  Registrable  Securities.   In the
event  that  an  underwriting agreement is entered into between the Company
and any Holder, and  such  underwriting  agreement contains terms differing
from this Agreement, as to any such Holder  the  terms of such underwriting
agreement shall govern.

     9.8  EFFECT  OF  AMENDMENT  OR  WAIVER.   The  Purchasers   and  their
successors and assigns acknowledge that by the operation of SECTION  9.7 of
this  Agreement,  but subject to the limitations therein, the Holders of  a
majority of the outstanding  Registrable  Securities, acting in conjunction
with the Company, will have the right and power  to  diminish  or eliminate
any  or  all  rights  or  increase any or all obligations pursuant to  this
Agreement.

     9.9  RIGHTS OF HOLDERS.   Each  Holder of Registrable Securities shall
have the absolute right to exercise or refrain from exercising any right or
rights that such Holder may have by reason  of  this  Agreement, including,
without limitation, the right to consent to the waiver  or  modification of
any  obligation under this Agreement, and such Holder shall not  incur  any
liability  to any other holder of any securities of the Company as a result
of exercising or refraining from exercising any such right or rights.

     9.10 DELAYS OR OMISSIONS.  No delay or omission to exercise any right,
power or remedy accruing to any party to this Agreement, upon any breach or
default of the other party, shall impair any such right, power or remedy of
such non-breaching  party  nor  shall it be construed to be a waiver of any
such breach or default, or an acquiescence therein, or of or in any similar
breach or default thereafter occurring;  nor shall any waiver of any single
breach  or  default  be  deemed a waiver of any  other  breach  or  default
theretofore  or thereafter  occurring.   Any  waiver,  permit,  consent  or
approval   of  any   kind  or  character  on  the  part  of  any  party  of
any breach or   default  under  this  Agreement,  or any waiver on the part
of  any  party  of  any  provisions  or  conditions   of  this   Agreement,
must  be  made  in  writing  and  shall  be  effective  only  to the extent

                                        -9-
<PAGE>

specifically  set  forth in  such writing.  All remedies, either under this
Agreement, or  by  law  or  otherwise  afforded  to  any  Holder,  shall be
cumulative and not alternative.

     9.11 FAILURE  TO  EFFECT  REGISTRATION.   If the Company shall fail to
file the Registration Statement referred to in SECTION  2(A)  hereof within
thirty (30) days after the issuance of the Primary Shares, or to  cause the
Commission to declare such Registration Statement effective within  (i) one
hundred twenty (120) days after the issuance of the Primary Shares or  (ii)
if  the  Commission elects to review the Registration Statement, forty-five
(45) days  following  the  Company's  receipt  of initial comments from the
Commission with respect to such Registration Statement, whichever is later,
then  the  Company  will pay to each Purchaser, upon  demand  therefor,  an
amount equal to one percent  (1%)  of  the  purchase  price  paid  by  such
Purchaser  for the Primary Shares for each full period, if any, of five (5)
business days  thereafter before the Registration Statement is filed and/or
becomes effective,  as  applicable.   Notwithstanding  the foregoing to the
contrary,  the  maximum  amount  payable  by the Company pursuant  to  this
section is an amount equal to five percent  (5%) of the purchase price paid
by the Purchasers for the Primary Shares.

                                        -10-
<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed  this  Agreement as of
the day and year first above written.

                              COMPANY:

                              UNIFAB INTERNATIONAL, INC.

                              By: /s/ Dailey J. Berard
                                 ---------------------------------
                              Title:   Chief Executive Officer
                                    ------------------------------

                              PURCHASER:

                              ____________________________________

                              [Name of Purchaser]

                              By:
                                 ---------------------------------
                              Title:
                                    ------------------------------

                              PLACEMENT AGENT:

                              MORGAN KEEGAN & COMPANY, INC.

                              By:
                                 ---------------------------------
                              Title:
                                    ------------------------------

                                        -11-

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed  this  Agreement as of
the day and year first above written.

                              COMPANY:

                              UNIFAB INTERNATIONAL, INC.

                              By:
                                 ---------------------------------
                              Title:
                                    ------------------------------

                              PURCHASER:

                              Ohio Carpenters' Pension Plan
                              -------------------------------------
                              [Name of Purchaser]

                              By: Wellington Management Company, LLP
                                 As Its Investment Advisor

                                By: /s/ Peter L. Curry
                                   -----------------------
                                Name: Peter L. Curry
                                Title: Vice President

                              PLACEMENT AGENT:

                              MORGAN KEEGAN & COMPANY, INC.

                              By:
                                 ---------------------------------
                              Title:
                                    ------------------------------

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed  this  Agreement as of
the day and year first above written.

                              COMPANY:

                              UNIFAB INTERNATIONAL, INC.

                              By:
                                 ---------------------------------
                              Title:
                                    ------------------------------

                              PURCHASER:

                              New York State Nurses Association Pension Plan
                              ----------------------------------------------
                              [Name of Purchaser]

                              By: Wellington Management Company, LLP
                                 As Its Investment Advisor

                                By: /s/ Peter L. Curry
                                   -----------------------
                                Name: Peter L. Curry
                                Title: Vice President

                              PLACEMENT AGENT:

                              MORGAN KEEGAN & COMPANY, INC.

                              By:
                                 ---------------------------------
                              Title:
                                    ------------------------------

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed  this  Agreement as of
the day and year first above written.

                              COMPANY:

                              UNIFAB INTERNATIONAL, INC.

                              By:
                                 ---------------------------------
                              Title:
                                    ------------------------------

                              PURCHASER:

                              Laborers' District Council and Contractors'
                              of Ohio
                              -------------------------------------
                              [Name of Purchaser]

                              By: Wellington Management Company, LLP
                                 As Its Investment Advisor

                                By: /s/ Peter L. Curry
                                   -----------------------
                                Name: Peter L. Curry
                                Title: Vice President

                              PLACEMENT AGENT:

                              MORGAN KEEGAN & COMPANY, INC.

                              By:
                                 ---------------------------------
                              Title:
                                    ------------------------------

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed  this  Agreement as of
the day and year first above written.

                              COMPANY:

                              UNIFAB INTERNATIONAL, INC.

                              By:
                                 ---------------------------------
                              Title:
                                    ------------------------------

                              PURCHASER:

                              Oregon Investment Council
                              -------------------------------------
                              [Name of Purchaser]

                              By: Wellington Management Company, LLP
                                 As Its Investment Advisor

                                By: /s/ Peter L. Curry
                                   -----------------------
                                Name: Peter L. Curry
                                Title: Vice President

                              PLACEMENT AGENT:

                              MORGAN KEEGAN & COMPANY, INC.

                              By:
                                 ---------------------------------
                              Title:
                                    ------------------------------

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed  this  Agreement as of
the day and year first above written.

                              COMPANY:

                              UNIFAB INTERNATIONAL, INC.

                              By:
                                 ---------------------------------
                              Title:
                                    ------------------------------

                              PURCHASER:

                              -------------------------------------
                              [Name of Purchaser]

                              By:
                                   --------------------------------
                              Title:
                                    -------------------------------

                              PLACEMENT AGENT:

                              MORGAN KEEGAN & COMPANY, INC.

                              By:  /s/ Minor Perkins
                                 ---------------------------------
                              Title:  Managing Director
                                    ------------------------------

                                  -11-

<PAGE>
                                Schedule A

                            List of Purchasers

                       Wellington Management Company, LLP

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