Document:

SECOND AMENDMENT TO CREDIT AGREEMENT

               SECOND AMENDMENT,  dated as of June 30, 2000 (this  "Amendment"),
among HYDROCHEM HOLDING,  INC., a Delaware  corporation  ("Holding"),  HYDROCHEM
INDUSTRIAL  SERVICES,  INC.,  a  Delaware  corporation  (the  "Borrower"),   the
financial  institutions  party to the Credit  Agreement  referred  to below (the
"Lenders"),  and BANK OF AMERICA, N.A., as Administrative Agent. All capitalized
terms used herein and not  otherwise  defined  herein shall have the  respective
meanings provided such terms in the Credit Agreement referred to below.

                              W I T N E S S E T H :
                              --------------------

               WHEREAS,   Holding,   the   Borrower,   the   Lenders   and   the
Administrative Agent are parties to a Credit Agreement, dated as of November 19,
1999 (as in effect on the date hereof, the "Credit Agreement"); and

               WHEREAS, the parties hereto wish to amend the Credit Agreement as
herein provided;

               NOW THEREFORE, it is agreed:

I.      Amendments to Credit Agreement.
        ------------------------------

        1. Section  8.01(f)(A) is hereby  amended by (i) deleting the word "and"
first appearing in the tenth line thereof and inserting a comma in lieu thereof,
(ii)  inserting  the words "and 9.17, in each case"  immediately  after the word
"inclusive," appearing in the same tenth line thereof, and (iii) deleting clause
(iii) thereof and inserting the following new clause (iii) in lieu thereof:

        "(iii) set forth a list of all  Subsidiaries  of the  Borrower as of the
        end of such fiscal quarter or year, as the case may be, and an update to
        Annexes A through F of the Security Agreement and Annexes B through E of
        the Pledge  Agreement as of the end of such fiscal  quarter or year,  as
        the case may be."

        2. Section  8.16(a) is hereby  amended by deleting  the words  "Sections
9.08,  9.09,  9.10 and 9.11" each place such words appear  therein and inserting
the words  "Sections  9.08,  9.09,  9.10, 9.11 and 9.17" in lieu thereof in each
such place.

<PAGE>

        3.  Section 9.10 of the Credit  Agreement is hereby  amended by deleting
such Section in its entirety and by inserting in lieu thereof the  following new
Section 9.10:

               "9.10  Maximum  Consolidated  Leverage  Ratio.  Holding  will not
        permit the Consolidated  Leverage Ratio as of the last day of any fiscal
        quarter of  Holding  ending  during  any  period  set forth  below to be
        greater than the ratio set forth opposite such period below:
<TABLE>
<CAPTION>
               Period                                            Ratio
               ------                                            -----
               <S>                                               <C>
               June 30, 2000 through and
               including December 31, 2000                       5.50:1.00

               January 1, 2001 through and
               including June 30, 2001                           5.25:1.00

               July 1, 2001 through and
               including December 31, 2001                       5.00:1.00

               January 1, 2002 through and
               including December 31, 2002                       4.50:1.00

               January 1, 2003 through and
               including December 31, 2003                       4.00:1.00

               Thereafter                                        3.50:1.00".
</TABLE>

        4.     Section 9  of the  Credit  Agreement is hereby further amended by
inserting  following new Section 9.17 at the end thereof:

               "9.17 Maximum  Consolidated  Senior Leverage Ratio.  Holding will
        not permit the Consolidated  Senior Leverage Ratio as of the last day of
        any fiscal  quarter of Holding  ending during any period set forth below
        to be greater than the ratio set forth opposite such period below:
<TABLE>
<CAPTION>
               Period                                            Ratio
               ------                                            -----
               <S>                                               <C>
               June 30, 2000 through and
               including June 30, 2001                           2.25:1.00

               Thereafter                                        2.00:1.00"
</TABLE>

        5.     Section  11.01  of  the  Credit  Agreement  is  hereby amended by
deleting the definition of "Applicable  Commitment Commission Percentage" and
"Applicable  Margin"  appearing  therein  and  inserting  in  lieu  thereof  the
following  new definition thereof:

                                       2
<PAGE>

               "Applicable  Commitment  Commission  Percentage"  and "Applicable
        Margin"  shall mean from and after any Start Date to and  including  the
        corresponding  End Date, the  respective  percentage per annum set forth
        below under the  respective  column below and  opposite  the  respective
        Level (i.e.,  Level 1, Level 2, Level 3, Level 4, Level 5 or Level 6, as
        the case may be) indicated to have been achieved on the applicable  Test
        Date  for  such  Start  Date  (as  shown  on  the  respective  officer's
        certificate  delivered  pursuant  to  Section  8.01(f)(A)  or the  first
        proviso below):
<TABLE>
<CAPTION>

                                   Applicable                         Applicable
                                   Margin for    Applicable Margin    Commitment
               Consolidated        Base Rate            for           Commission
       Level   Leverage Ratio      Loans         Eurodollar Loans     Percentage
       -----   --------------      -----         ----------------     ----------
         <S>   <C>                     <C>          <C>                 <C>
         1     Less than or equal
               to 2.50:1.00            0.50%        1.75%               0.300%
         2     Greater than
               2.50:1.00 but less
               than or equal to        0.75%        2.00%               0.375%
               3.00:1.00

         3     Greater than
               3.00:1.00 but less
               than or equal to        1.00%        2.25%               0.375%
               3.50:1.00

         4     Greater than
               3.50:1.00 but less
               than or equal to        1.25%        2.50%               0.500%
               4.00:1.00

         5     Greater than
               4.00:1.00 but less
               than or equal to        1.75%        3.00%               0.500%
               5:00:1:00
         6     Greater than            2.25%        3.50%               0.500%
               5.00:1.00
</TABLE>
        ;  provided,  however,  that if Holding  fails to deliver the  financial
        statements  required to be delivered  pursuant to Section 8.01(b) or (c)
        (accompanied  by the  officer's  certificate  required  to be  delivered
        pursuant  to Section  8.01(f)(A)  showing  the  applicable  Consolidated
        Leverage  Ratio on the relevant Test Date) on or prior to the respective
        date required by such  Sections,  then Level 6 pricing shall apply until
        such time,  if any, as the  financial  statements  required as set forth
        above and the  accompanying  officer's  certificate  have been delivered
        showing the pricing for the respective  Margin  Reduction Period is at a
        level which is less than Level 6 (it being  understood that, in the case
        of  any  late  delivery  of  the  financial   statements  and  officer's
        certificate as so required,  any reduction in the Applicable  Commitment

                                       3
<PAGE>

        Commission Percentage and in the Applicable Margin shall apply only from
        and after the date of the delivery of the complying financial statements
        and officer's certificate); provided further, that Level 6 pricing shall
        apply at any time when any Default or Event of Default is in  existence.
        Notwithstanding  anything to the contrary  contained in the  immediately
        preceding  sentence,  (i) for  periods  prior  to the  Second  Amendment
        Effective Date, the Applicable  Commitment Commission Percentage and the
        Applicable  Margin  shall be  determined  as provided in this  Agreement
        prior to giving effect to the Second  Amendment and (ii) Level 5 pricing
        shall apply for the period from the Second  Amendment  Effective Date to
        but not including the date which is the first Start Date after Holding's
        fiscal quarter ending on June 30, 2000."

        6.     Section 11.01 of the Credit  Agreement is hereby further  amended
by  inserting in the proper alphabetical order the following new defined terms:

               "Consolidated Senior Leverage Ratio" shall mean, at any time, the
        ratio of Consolidated  Indebtedness at such time (but excluding from the
        calculation  thereof the aggregate  outstanding  principal amount of all
        Senior Subordinated Notes and Seller Subordinated Notes at such time) to
        Consolidated EBITDA for the Test Period then most recently ended.

               "Second  Amendment" shall mean the Second Amendment,  dated as of
        June 30, 2000, to this Agreement.

               "Second Amendment Effective Date" shall have the meaning provided
in the Second Amendment.

        7.     Section  13.07  of  the  Credit  Agreement is  hereby  amended by
inserting  the words "and Section 9.17," immediately after the word "inclusive,"
appearing in the eighth line thereof.

        8.     Section 13.18 of the Credit Agreement is hereby deleted in its
entirety.

II.     Miscellaneous.
        -------------

        1. In order to induce the Lenders to enter into this Amendment,  each of
Holding  and  the  Borrower   hereby   represents  and  warrants  that  (i)  all
representations,  warranties and agreements contained in Section 7 of the Credit
Agreement are true and correct in all material  respects on and as of the Second
Amendment  Effective Date and as of August 4, 2000 (unless such  representations
and  warranties   relate  to  a  specific  earlier  date,  in  which  case  such
representations  and  warranties  shall  be true  and  correct  in all  material
respects as of such  earlier  date) and (ii) there exists no Default or Event of
Default on the Second Amendment Effective Date and as of August 4, 2000, in each
case after giving effect to this Amendment.

        2. This  Amendment  is limited as specified  and shall not  constitute a
modification,  acceptance  or  waiver  of any  other  provision  of  the  Credit
Agreement or any other Credit Document.

                                       4
<PAGE>

        3. This Amendment may be executed in any number of  counterparts  and by
the  different   parties  hereto  on  separate   counterparts,   each  of  which
counterparts  when executed and delivered  (including by way of facsimile) shall
be an  original,  but all of which shall  together  constitute  one and the same
instrument. A complete set of counterparts shall be lodged with the Borrower and
the Administrative Agent.

        4.  THIS  AMENDMENT  AND  THE  RIGHTS  AND  OBLIGATIONS  OF THE  PARTIES
HEREUNDER  SHALL BE CONSTRUED IN ACCORDANCE  WITH AND GOVERNED BY THE LAW OF THE
STATE OF NEW YORK.

        5. This  Amendment  shall be  effective as of June 30, 2000 (the "Second
Amendment  Effective  Date")  provided  that on or before August 4, 2000 each of
Holding,  the Borrower and the Required  Lenders shall have signed a counterpart
hereof  (whether the same or different  counterparts)  and shall have  delivered
(including,  without limitation, by usage of facsimile transmission) the same to
the Administrative Agent at the Notice Office. This Amendment and the agreements
contained  herein shall be binding on the  successors and assigns of the parties
hereto.

        6. To induce  the  Lenders to enter into this  Amendment,  the  Borrower
hereby agrees to pay to the Administrative Agent (for the account of each Lender
which has  approved  this  Amendment  on or before 5:00 p.m.  (New York time) on
August 4, 2000) an amendment fee equal to 0.20% of the sum of each such Lender's
Revolving Loan Commitment and  outstanding  Term Loans as of the August 4, 2000,
which fee shall be payable on August 7, 2000.

        7. From and after the Second Amendment Effective Date, all references in
the Credit  Agreement and in the other Credit  Documents to the Credit Agreement
shall be deemed to be references to the Credit Agreement as modified hereby.

                                      * * *

                                       5
<PAGE>

               IN  WITNESS  WHEREOF,  each of the  parties  hereto  has caused a
counterpart  of this  Amendment to be duly executed and delivered as of the date
first above written.

                                              HYDROCHEM HOLDING, INC.

                                             By:/s/ Selby F. Little, III
                                                ---------------------------
                                                Name: Selby F. Little, III
                                                Title:Executive Vice President &
                                                      Chief Financial Officer

                                        HYDROCHEM INDUSTRIAL SERVICES, INC.

                                             By:/s/ Selby F. Little, III
                                                --------------------------
                                                Name: Selby F. Little, III
                                                Title:Executive Vice President &
                                                      Chief Financial Officer

<PAGE>

                                        BANK OF AMERICA, N.A.,
                                        Individually and as Administrative Agent

                                             By:/s/ John J. O'Neill
                                                ----------------------
                                                 Name: John J. O'Neill
                                                 Title: Managing Director

<PAGE>

                                        BANK AUSTRIA CREDITANSTALT
                                          CORPORATE FINANCE, INC.

                                             By:/s/ Gary W. Andresen
                                                -----------------------
                                                 Name: Gary W. Andresen
                                                 Title: Assistant Vice President

                                             By:/s/ Scott Kray
                                                --------------------
                                                 Name: Scott Kray
                                                 Title: Executive Vice President

<PAGE>

                                        NATIONAL CITY BANK OF KENTUCKY

                                             By:/s/ Scott Brewer
                                                ------------------
                                                 Name: Scott Brewer
                                                 Title: Vice President

<PAGE>

                                        NATEXIS BANQUE - BFCE

                                             By:/s/ Daniel Payer
                                                -------------------
                                                 Name: Daniel Payer
                                                 Title: Assistant Vice President

                                             By:/s/ Louis P. Laville, III
                                                ----------------------------
                                                 Name: Louis P. Laville, III
                                                 Title: Vice President and
                                                        Group Manager

<PAGE>

                                        SOUTHWEST BANK OF TEXAS, N.A.

                                             By:/s/ Joe Argue
                                                ----------------
                                                 Name: Joe Argue
                                                 Title: Executive Vice President

                                             By:/s/ Randall Walker
                                                 Name: Randall Walker
                                                 Title: Vice President

<PAGE>

                                        WELLS FARGO BANK (TEXAS),
                                          NATIONAL ASSOCIATION

                                             By:/s/ Linda Masera
                                                -------------------
                                                 Name: Linda Masera
                                                 Title: Vice PresidentEXHIBIT 10.2

                       R&B FALCON CORPORATION
                       STOCK OPTION AGREEMENT

      This  Stock Option Agreement ("Agreement") between  R&B  Falcon
Corporation,  a Delaware corporation ("Company") and P.C.  Chatterjee
("Optionee"),

                             WITNESSETH:

      WHEREAS, Optionee, being a duly elected or appointed member  of
the  Board of Directors of the Company, is entitled to receive a non-
qualified stock option award under the Company's 1999 Director  Long-
Term  Incentive  Plan ("Plan"), as an incentive to  the  Optionee  to
remain a director of the Company and contribute to the performance of
the  Company,  on  the  terms and subject to the conditions  provided
herein;

     NOW THEREFORE, for and in consideration of these premises, it is
hereby agreed as follows:

     1.   The  Option is issued in accordance with and subject to all
          of  the  terms, conditions and provisions of the  Plan  and
          administrative interpretations thereunder,  if  any,  which
          have been adopted by the Committee and are in effect on the
          date  hereof.   Capitalized terms used (but  not  otherwise
          defined  herein) shall have the meanings assigned  to  such
          terms in the Plan.

     2.   On  the  terms  and  subject  to the  conditions  contained
          herein,  the  Committee hereby grants to  the  Optionee  an
          option ("Option") for a term of ten years ending on January
          28,  2010  ("Option Period") to purchase from  the  Company
          5,500  shares  ("Option Shares") of  the  Company's  Common
          Stock, at a price equal to $12.656 per share.

     3.   This  Option shall not be exercisable until after 6  months
          immediately following the Effective Date, and thereafter on
          January  1,  2001 shall be exercisable for  any  number  of
          shares  up to and including, but not in excess of, 100%  of
          the  aggregate  number of shares subject  to  this  Option,
          provided  the  number  of shares as to  which  this  Option
          becomes exercisable shall, in each case, be reduced by  the
          number  of  shares theretofore purchased  pursuant  to  the
          terms hereof.

     4.   The  Option herein granted may be exercised by the Optionee
          by  giving  written notice to the Secretary of the  Company
          setting  forth the number of Option Shares with respect  to
          which the option is to be exercised, accompanied by payment
          for   the  shares  to  be  purchased  and  any  appropriate
          withholding taxes, and specifying the address to which  the
          certificate for such shares is to be mailed.  Payment shall
          be  by means of cash, certified check, bank draft or postal
          money  order  payable  to the order  of  the  Company.   As
          promptly  as  practicable  after receipt  of  such  written
          notification and payment, the Company shall deliver to  the
          Optionee certificates for the number of Option Shares  with
          respect to which such option has been so exercised.

     5.   Optionee  may  pay for any Option Shares  with  respect  to
          which  the  Option herein granted is exercised by tendering
          to  the Company other shares of Common Stock at the time of
          the  exercise or partial exercise hereof.  The certificates
          representing  such  other shares of Common  Stock  must  be
          accompanied  by a stock power duly executed with  signature
          guaranteed.   The  value of the Common  Stock  so  tendered
          shall be its Fair Market Value.

     6.   The  Option herein granted shall not be transferable by the
          Optionee otherwise than as permitted by  Section 13  of the
          Plan.   During  the lifetime of the  Optionee, such  Option
          shall  be  exercisable  only  by  him.  No transfer of  the
          Option  herein  granted  shall be  effective  to  bind  the
          Company unless the Company shall have  been  furnished with
          written  notice  thereof and a copy of such evidence as the
          Committee  may  deem necessary to establish the validity of
          the  transfer  and  the  acceptance  by  the  transferee or
          transferees of the terms and conditions hereof.

     7.   (a)  Upon the first to occur during the Option Period of:

                    (i)  Change of Control; or

                    (ii) the termination of the Optionee's service as
                         a  member of the board of directors  of  the
                         Company  due  to (A) death or disability  or
                         (B) retirement at age 60 or over;

          the  applicable restrictions on exercise set out in Section
          3  above  (other  than the initial six  months  immediately
          following  the  Effective  Date) shall  terminate  and  the
          Optionee's  right to exercise this Option thereafter  shall
          no longer be subject to such restrictions on exercise.

          (b)   If   the  Optionee's  service  as  a  member  of  the
          board  of directors of the Company terminates prior to  the
          occurrence of a date set forth in Section 7(a)(i) above for
          any reason (other than any of the reasons expressly set out
          in  Section 7(a)(ii) above), then the Option granted herein
          shall  immediately  terminate and  thereafter  may  not  be
          exercised in whole or in part by Optionee.

     8.   The  Optionee  shall have no rights as a  stockholder  with
          respect to any Option Shares until the date of issuance  of
          a  certificate for Option Shares purchased pursuant to this
          Agreement.   Until  such time, the Optionee  shall  not  be
          entitled  to  dividends  or to  vote  at  meetings  of  the
          stockholders of the Company.

     9.   The  Company  may  make  such provisions  as  it  may  deem
          appropriate  for  the withholding of  any  taxes  which  it
          determines is required in connection with the option herein
          granted.   The Optionee may pay all or any portion  of  the
          taxes required to be withheld by the Company or paid by the
          Optionee  in  connection with the exercise of  all  or  any
          portion  of the option herein granted by electing  to  have
          the  Company  withhold  shares  of  Common  Stock,  or   by
          delivering previously owned shares of Common Stock,  having
          a  Fair  Market  Value equal to the amount required  to  be
          withheld  or  paid.  The Optionee must make  the  foregoing
          election on or before the date that the amount of tax to be
          withheld is determined ("Tax Date").  Any such election  is
          irrevocable  and subject to disapproval by  the  Committee.
          If  the  Optionee  is  subject to the  short-swing  profits
          recapture provisions of Section 16(b) of the Exchange  Act,
          any  such  election  shall  be  subject  to  the  following
          additional restrictions:

          (a)  Such election may not be made within six months of the
               grant  of  this option, provided that this  limitation
               shall not apply in the event of death or disability.

          (b)  Such  election  must  be made either  in  an  Election
               Window (as hereinafter defined) or at such other  time
               as  may  be  consistent with Section 16(b)(3)  of  the
               Exchange  Act.  Where the Tax Date in respect  of  the
               exercise  of  all  or any portion of  this  Option  is
               deferred  until after such exercise and  the  Optionee
               elects stock withholding, the full amount of shares of
               Common  Stock  will  be issued or transferred  to  the
               Optionee  upon  exercise  of  this  Option,  but   the
               Optionee shall be unconditionally obligated to  tender
               back  to  the  Company on the Tax Date the  number  of
               shares  necessary to discharge with  respect  to  such
               Option  exercise  the  greater of  (i)  the  Company's
               withholding obligation and (ii) all or any portion  of
               the   holder's   federal  and  state  tax   obligation
               attributable  to  the  Option exercise.   An  Election
               Window  is any period commencing on the third business
               day following the Company's release of a quarterly  or
               annual  summary  statement of sales and  earnings  and
               ending  on  the  twelfth business day  following  such
               release.

     10.  Upon the acquisition of any shares pursuant to the exercise
          of  the Option herein granted, the Optionee will enter into
          such written representations, warranties and agreements  as
          the  Company may reasonably request in order to comply with
          applicable securities laws or with this Agreement.

     11.  The  certificates representing the Option Shares  purchased
          by  exercise  of  an  option will be stamped  or  otherwise
          imprinted with a legend in such form as the Company or  its
          counsel   may  require  with  respect  to  any   applicable
          restrictions  on sale or transfer, and the  stock  transfer
          records   of   the   Company  will  reflect   stop-transfer
          instructions, as appropriate, with respect to such shares.

     12.  Unless  otherwise  provided herein, every notice  hereunder
          shall  be  in  writing and shall be given by registered  or
          certified  mail.   All  notices  of  the  exercise  by  the
          Optionee of any option hereunder shall be directed  to  R&B
          Falcon  Corporation, Attention: Secretary, at the Company's
          then  current address of its principal office.  Any  notice
          given by the Company to the Optionee directed to him at his
          address on file with the Company shall be effective to bind
          any  other person who shall acquire rights hereunder.   The
          Company  shall be under no obligation whatsoever to  advise
          the  Optionee of the existence, maturity or termination  of
          any  of  the  Optionee's rights hereunder and the  Optionee
          shall  be  deemed  to have familiarized  himself  with  all
          matters  contained herein and in the Plan which may  affect
          any of the Optionee's rights or privileges hereunder.

     13.  Whenever   the   term  "Optionee"  is  used  herein   under
          circumstances applicable to any other person or persons  to
          whom  this  Award,  in accordance with  the  provisions  of
          Paragraph 6, may be transferred, the word "Optionee"  shall
          be deemed to include such person or persons.  References to
          the  masculine  gender  herein also  include  the  feminine
          gender for all purposes.

     14.  Notwithstanding  any  of the other provisions  hereof,  the
          Optionee agrees that he will not exercise the option herein
          granted,  and  that the Company will not  be  obligated  to
          issue  any  shares  pursuant  to  this  Agreement,  if  the
          exercise  of the option or the issuance of such  shares  of
          Common  Stock would constitute a violation by the  Optionee
          or by the Company of any provision of any law or regulation
          of  any  governmental authority or any national  securities
          exchange.

     15.  For the purpose of this Agreement,  a   "Change of Control"
          shall mean:  (a) any "Person", as  such   term  is  used in
          Section 13(d) and 14(d) of the Securities Exchange  Act  of
          1934, as amended  (the  "Exchange  Act")   (other  than (i)
          the Optionee, (ii) the Company or  any  of its subsidiaries
          or  Affiliates  (as  that  term  is defined in the Exchange
          Act),   (iii)   any  Person   subject,  as   of  the   date
          of this Agreement or at any prior time, to the reporting or
          filing  requirements of Section 13(d) of the  Exchange  Act
          with  respect  to  the securities of  the  Company  or  any
          Affiliate,  (iv) any trustee or other fiduciary holding  or
          owning  securities under an employee benefit  plan  of  the
          Company, (v) any underwriter temporarily holding or  owning
          securities  of  the Company, or (vi) any corporation  owned
          directly or indirectly by the current stockholders  of  the
          Company in substantially the same proportion as their  then
          ownership of stock of the Company) becomes, after the  date
          of  this  Agreement, the "beneficial owner" (as defined  in
          Rule 13d-3 under the Exchange Act), directly or indirectly,
          of  securities  of the Company representing  forty  percent
          (40%) or more of the combined voting power of the Company's
          then outstanding securities;  or (b) at any time a majority
          of  the members of the board of directors of the Company is
          comprised of other than Continuing Directors (and for  this
          purpose  "Continuing Directors" shall mean members  of  the
          board of directors of the Company who were directors as  of
          the  date  of  this Agreement, or who were nominated  by  a
          majority  of the members of the board of directors  of  the
          Company  and such majority was comprised only of Continuing
          Directors at the time of such nomination).

     IN  WITNESS WHEREOF, this Agreement is executed this ____ day of
March, 2000, effective as of the 28th day of January, 2000.

                         R&B FALCON CORPORATION

                         By: _______________________
                         Paul B. Loyd, Jr. - Chairman and
                         Chief Executive Officer

                         OPTIONEE

                         ________________________
                         P.C. Chatterjee

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