TORCH OFFSHORE INC
EMPLOYMENT AGREEMENT - WILLIE J. BERGERON, JR.
<DOCUMENT>
<TYPE>EX-10.26
<SEQUENCE>8
<FILENAME>d03981exv10w26.txt
<DESCRIPTION>EMPLOYMENT AGREEMENT - WILLIE J. BERGERON, JR.
<TEXT>
<PAGE>

                              TORCH OFFSHORE, INC.
                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (this "Agreement") is effective as of
December 31, 2002 (the "Effective Date"), and is entered into between Torch
Offshore, Inc., a Delaware corporation (the "Corporation"), and Willie J.
Bergeron, Jr., a person of the full age of majority (the "Employee").

         1.       Employment and Duties.

         (a)      The Corporation agrees to employ the Employee as Vice
President - Operations, or a similar capacity, as of the Effective Date and for
the period set forth in paragraph 1(c) below, unless employment is terminated
sooner as provided herein.

         (b)      The Employee accepts employment and agrees to devote his full
time and attention to the performance of his duties as determined, from time to
time, by the Chief Executive Officer or the Board of Directors of the
Corporation.

         (c)      The Employee shall continue to serve in the employ of the
Corporation until December 31, 2003, (the "Initial Term"), except as provided
herein. Upon the expiration of the Initial Term, this Agreement may be renewed
for one or more additional one-year term(s) (the "Renewal Term") with the
written consent of the parties hereto.

         2.       Compensation. For all services rendered by the Employee, the
Corporation shall compensate the Employee as follows:

         (a)      Annual Salary. The Corporation shall pay to the Employee,
subject to the terms and conditions set forth in this Agreement, an annual
salary of $160,000.00, and such amount shall be prorated and paid in accordance
with the Corporation's customary payroll practices.

         (b)      Perquisites and Benefits. The Employee shall be entitled to
receive in the aggregate substantially the same fringe benefits and perquisites
offered by the Corporation to any of the Corporation's similarly situated
employees, including, without limitation, participation in the various employee
benefit plans or programs provided to the employees of the Corporation in
general, subject to the regular eligibility requirements with respect to each of
such benefit plans or programs.

         (c)      Severance. If the Corporation terminates the employment of the
Employee for any reason other than Cause (as defined in paragraph 4(d)), or if
the Employee terminates his employment as provided in Paragraph 4(e), then the
Corporation shall pay to the Employee severance payments of one (1) year of
salary at his then current rate, to be paid in accordance with the Company's
standard payroll practices. The Employee expressly acknowledges and agrees that
the Employee shall not be eligible to receive from the Corporation any form of
severance pay or other form of termination benefit, except as expressly provided
in this

<PAGE>

paragraph 2(c) (other than coverage under COBRA or other form of legally
mandated benefit available after the termination of employment).

         Any amount(s) payable under this Agreement shall be subject to the
withholding of such income and employment taxes as may be required by law to be
withheld.

         3.       Payment or Reimbursement of Expenses. Subject to compliance by
the Employee with such policies regarding expenses and expense reimbursements as
may be adopted, from time to time, by the Corporation, the Employee shall be
paid or reimbursed for reasonable expenses actually incurred in connection with
the performance of his duties hereunder and in the furtherance of the business
and affairs of the Corporation. Any such reimbursement shall be made within a
reasonable period after presentation by the Employee of an itemized account of
such expenses, accompanied by appropriate receipts satisfactory to the
Corporation. In no event shall any expense be paid or reimbursed, unless
properly accounted for to the extent necessary to substantiate the Corporation's
Federal income tax deduction under the applicable provisions of the Internal
Revenue Code of 1986, as amended (the "Code"), and the regulations promulgated
thereunder or any similar state or federal law or regulation.

         4.       Termination.

         (a)      This Agreement and the Corporation's obligations hereunder
shall terminate as of the conclusion of the Initial Term, unless terminated
earlier pursuant to this paragraph 4 or extended for successive one-year terms
as provided in paragraph 1(c) hereof.

         (b)      Either party may terminate this Agreement by providing the
other party with written notice.

         (c)      If the Employee dies or becomes totally disabled (as
determined by the Board of Directors or the Chief Executive Officer of the
Corporation), this Agreement and the Employee's rights hereunder shall
automatically terminate as of the date of such death or disability.

         (d)      The Corporation may terminate this Agreement and the
Employee's rights hereunder at any time for Cause, which shall mean (i)
conviction of the Employee by a court of competent jurisdiction of any felony or
a crime involving moral turpitude; (ii) the Employee's knowing failure or
refusal to follow reasonable instructions of the Board of Directors or
reasonable policies, standards and regulations of the Corporation; (iii) the
Employee's continued failure or refusal to faithfully and diligently perform the
usual, customary duties of his employment with the Corporation; (iv) the
Employee's continuously conducting himself in an unprofessional, unethical,
immoral or fraudulent manner; or (v) the Employee's conduct discredits the
Corporation or is detrimental to the reputation, character and standing of the
Corporation; or (vi) breach of the provisions of paragraphs 5 or 6 hereof.

         (e)      Notwithstanding any other provision of this Agreement, the
Employee shall have the absolute right, but not the obligation, to terminate his
employment and to require that the provisions of Article 5 of this Agreement be
declared null and void in the event that:

<PAGE>

         (i)      Mr. and Mrs. Lyle Stockstill, together with their family
                  trusts, cease to own a majority of the outstanding securities
                  of the Corporation entitled to vote for the election of
                  directors (hereafter "Change in Control"); or

         (ii)     the Employee no longer reports directly to the Chief Executive
                  Officer of the Corporation.

         In either event, Employee shall notify the Corporation in writing of
his intent to resign his position with the Corporation and to void this
Covenant. Any such notification shall be given no later than thirty (30) days
following the date on which such event occurred, provided, however, that if,
following a Change of Control, the Employee is advised that his location of
employment is or is to be changed, then Employee shall have an additional thirty
(30) day period after being advised of such change of location to provide such
notice and give effect to this provision.

         5.       Covenant Not to Compete. During the term of the Employee's
employment with the Corporation or for a period of one (1) year following any
termination of the Employee's employment by the Corporation, the Employee agrees
that, with respect to the parishes within the State of Louisiana, and the
counties within the States of Texas, Alabama, Florida, and Mississippi set forth
on Schedule A attached hereto, including the territorial waters of the United
States located offshore of such areas, each of which the Employee stipulates and
agrees that the Corporation carries on or intends to carry on a like business,
the Employee shall not, directly or indirectly, for his own benefit or to the
detriment of the Corporation or its affiliates:

         (a)      Own, manage, operate, control, or participate in the
ownership, management, operation, or control of a business (however structured)
that carries on or engages in any manner (excluding stock in a publicly held
corporation), in the Pipelay and Subsea Construction Business. For this purpose,
the term "Pipelay and Subsea Construction Business" shall refer to the
installation, laying, and/or burying of transmission lines, trunk lines, and
flowlines, laying of all rigid, flexible, reeled, or coiled tubing and
installing, laying, and/or burying of control, power umbilicals ands subsea
communication or power cables, and pipeline tie-ins, pipeline burial, riser
installation and survey, inspection, maintenance, and repair services in
connection with oil and gas pipelines;

         (b)      Perform any services similar to the primary services he
performed while employed by the Corporation or any of its subsidiaries or
affiliates for any person, partnership, corporation, association, group, or
other entity engaged in the Pipelay and Subsea Construction Business (as defined
above), whether as an employee, independent contractor, or otherwise; or

         (c)      Solicit customers or employees of the Corporation or any of
its subsidiaries or affiliates for any purpose or in any manner detrimental to
the Corporation or its business or operations.

                  The parties hereto agree that each of the foregoing
prohibitions is intended to constitute a separate restriction. Accordingly,
should any such prohibition be declared invalid or unenforceable, such
prohibition shall be deemed severable from and shall not affect the remainder
thereof. The parties further agree that the foregoing restrictions are
reasonable in both time and scope.

<PAGE>

                  Because of the difficulty of measuring economic loss to the
Corporation as a result of a breach of any of the foregoing prohibitions, and
because of the immediate and irreparable damage that could be caused to the
Corporation for which it would have no other adequate remedy, the Employee
agrees that the foregoing prohibitions may be enforced by the Corporation, in
the event of breach by him, by injunctions, restraining orders, and orders of

specific performance issued by a court of competent jurisdiction. The Employee
further agrees to waive any requirement for the Corporation's securing or
posting of any bond in connection with such remedies.

         6.       Confidential Information.

         (a)      The Employee agrees not to disclose, either while employed by
the Corporation or any of its subsidiaries or affiliates or at any time
thereafter, to any person not employed by the Corporation or not engaged by the
Corporation to render services to the Corporation, any confidential information
of the Corporation or its subsidiaries or affiliates learned by the Employee
during the course of his employment by the Corporation. This paragraph 6 shall
not preclude the Employee from the use or disclosure of information known
generally to the public or of information not considered confidential by persons
engaged in the business conducted by the Corporation for from disclosure
required by law or court order. The Employee further agrees that, upon the
expiration or termination of this Agreement for any reason, he will not take
with him, without the prior written consent of the Corporation, any document,
magnetic or other storage media, or any other books, records, files, or
confidential or proprietary information of the Corporation or any of its
subsidiaries or affiliates.

         (b)      All written materials, records, and documents made by the
Employee or in the possession of the Employee during or after the term of this
Agreement concerning the business or affairs of the Corporation or any of its
subsidiaries or affiliates, or other items or property held by or for the
Employee, but owned or used by the Corporation or such subsidiary or affiliate,
as the case may be, and, upon the expiration or termination of the term of this
Agreement or upon the request of the Corporation or such subsidiary or
affiliate, the Employee shall promptly deliver all of such materials, records,
documents, or other items or property that are then in his possession.

         7.       Notices. All notices, requests, demands, and other
communications provided for by this Agreement shall be in writing and shall be
deemed to have been duly given when delivered in person or mailed by United
States certified mail, return receipt required, postage prepaid, addressed as
follows:

                  If to the Employee:           If to the Corporation:

                  Willie J. Bergeron, Jr.       Torch Offshore, Inc.
                  924 Eagle Drive               401 Whitney Avenue, Suite 400
                  Houma, Louisiana 70364        Gretna, Louisiana 70056
                                                Attention: Lyle Stockstill, CEO

<PAGE>

or to such other address as any party may have furnished to the other in writing
in accordance herewith, except that notices of change of address shall be
effective only upon receipt.

         8.       Governing Law. The provisions of this Agreement shall be
construed in accordance with the substantive local law of the State of
Louisiana, without consideration of the conflicts of law provisions thereof.

         9.       Successors. This Agreement shall be assignable by the
Corporation, with the prior written consent of the Employee. The Employee's
obligation to provide services hereunder, being personal to the Employee, may
not be assigned by the Employee.

         10.      Remedies. Each party acknowledges that the other party will
have no adequate remedy at law if the first party violates certain of the terms
of this Agreement, including but not limited to paragraphs 5 and 6, and that the
other party shall have the right, to the extent permitted by applicable law, in
addition to any other rights or remedies it may have, to obtain from any court
of competent jurisdiction, injunctive relief to restrain any breach or
threatened breach hereof or otherwise to specifically enforce the provisions
hereof.

         11.      Waiver. No waiver of any obligation, right or remedy under
this Agreement shall be effective, unless such waiver is made in writing,
specifying the terms of this Agreement subject to waiver and executed by the
party to be charged with such waiver. A waiver by either party of any of his or
its rights or remedies hereunder on any occasion shall not be a bar to the
exercise of the same right or remedy on any subsequent occasion or of the
exercise of any other right or remedy at any time.

         12.      Release. Notwithstanding anything in this Agreement to the
contrary, the Employee shall not be entitled to receive any severance payment
pursuant to paragraph 2 (c) of this Agreement unless the Employee has executed
(and not revoked) a general release of all claims the Employee may have against
the Corporation and/or its subsidiaries and affiliates with respect to
employment under this Agreement, in a form of such release reasonably acceptable
to the Corporation.

         13.      Integration and Amendments. This Agreement constitutes the
entire agreement and understanding between the parties with respect to the
subject matter hereof and supersedes any prior agreement or understanding,
whether written or oral, relating to such subject matter. No modification or
amendment to this Agreement shall be effective or binding unless in writing,
specifying such modification or amendment, executed by both of the parties
hereto.

         14.      Headings. The headings contained in this Agreement are for
reference purposes only and shall not affect the construction or interpretation
of this Agreement.

         15.      Severability. Should any section, provision, or portion of
this Agreement be declared invalid or unenforceable in any jurisdiction, then
such section, provision, or portion shall be deemed to be (a) severable from
this Agreement as to such jurisdiction (but not elsewhere) and shall not affect
the remainder hereof and (b) amended to the extent, and only to the extent,
necessary to permit such section, provision, or portion, as the case may be, to
be valid and enforceable in such jurisdiction (but not elsewhere).

<PAGE>

         16.      Survival of Certain Provisions. The rights and obligations of
the Employee under paragraphs 5 and 6 hereof shall survive the expiration or
termination of this Agreement.

         17.      Dispute Resolutions. Except with respect to injunctive relief
as provided in paragraphs 5 and 10, neither party shall institute a proceeding
in any court or administrative agency to resolve a dispute between the parties
before that party has sought to resolve the dispute through direct negotiation
with the other party. If the dispute is not resolved within two weeks after a
demand for direct negotiation, the parties shall attempt to resolve the dispute
through mediation. If the parties do not promptly agree on a mediator, the
parties shall request the Louisiana State Bar Association to appoint a mediator
in the state of Louisiana who is qualified as a mediator under the Louisiana
Mediation Act, as amended from time to time. If the mediator is unable to
facilitate a settlement of the dispute within a reasonable period of time, as
determined by the mediator, the mediator shall issue a written statement to the
parties to that effect and any unresolved dispute or controversy arising under
or in connection with this Agreement shall be settled exclusively by
arbitration, conducted before a panel of three arbitrators in Gretna, Louisiana
in accordance with the employment dispute resolution arbitration rules of the
American Arbitration Association then in effect. The arbitrators shall have the
authority to order back-pay, severance compensation, vesting of options (or cash
compensation in lieu of vesting options), reimbursement of costs and expenses,
including those incurred to enforce this Agreement, including reasonable
attorney's fees, and interest thereon. A decision by a majority of the
arbitration panel shall be final and binding. Judgement may be entered on the
arbitrators' award in any court having jurisdiction.

             THIS AGREEMENT was executed in multiple counterparts, each of which
shall be deemed an original, as of the dates set forth below, but to be
effective as of the Effective Date.

EMPLOYEE:                                         TORCH OFFSHIORE, INC.

__________________________                        By:___________________________
Willie J. Bergeron, Jr.
                                                  Title:________________________

Date:______________________                       Date:_________________________

<PAGE>

Schedule A - Counties and Parishes in which Competition is Prohibited

<TABLE>
<S>      <C>                        <C>               <C>
I.       TEXAS

         Jefferson                  Chambers          Harris
         Galveston                  Brazoria
         Calhoun                    Aransas
         Nueces                     Cameron

II.      LOUISIANA

         Cameron                    Vermilion         Lafayette
         Iberia                     St. Mary          Orleans
         Terrebonne                 Lafourche
         Jefferson                  Plaquemines

III.     MISSISSIPPI

         Hancock                    Harrison
         Jackson

IV.      ALABAMA

         Mobile

V.       FLORIDA

         Escambia                   Santa Rosa
         Pinnellas                  Hillsborough
         Manatee                    Brevard
</TABLE>

</TEXT>
</DOCUMENT>
