Document:

LONG-TERM INCENTIVE PLAN
                                       OF
                           TRANSOCEAN SEDCO FOREX INC.

               (As Amended and Restated Effective January 1, 2000)

                                Second Amendment
                                ----------------

     Transocean  Sedco  Forex  Inc.,  a  Cayman  Islands  exempted  company (the
"Company"),  having  reserved  the  right  under Section 6.3(a) of the Long-Term
Incentive Plan of Transocean Sedco Forex Inc., as amended and restated effective
January 1, 2000, and as thereafter amended (the "Plan"), to amend the Plan, does
hereby  amend  Article IV of the Plan, effective as of May 11, 2001, as follows:

          1.  Section  4.1 of the Plan is hereby amended in its entirety to read
as  follows:

     "4.1  GRANT  OF  OPTIONS  OR  FREESTANDING  SARS

          Each  person who becomes an Eligible Director (other than a person who
     first  becomes an Eligible Director on the date of an annual meeting of the
     Company's  shareholders)  shall  be  granted, effective as of the date such
     person  becomes  an  Eligible  Director,  (i)  an  Option to purchase 4,000
     Ordinary Shares (the "Initial Option"), if such person is not then residing
     in Norway, or (ii) a freestanding SAR with respect to 4,000 Ordinary Shares
     (the "Initial SAR"), if such person is then residing in Norway. Each person
     who  is or becomes an Eligible Director on the date of an annual meeting of
     the Company's shareholders and whose service on the Board of Directors will
     continue  after  such meeting shall be granted, effective as of the date of
     such  meeting, (i) an Option to purchase 6,000 Ordinary Shares (the "Annual
     Option"),  if  such  person  is  not  then  residing  in  Norway, or (ii) a
     freestanding  SAR with respect to 6,000 Ordinary Shares (the "Annual SAR"),
     if  such  person  is  then  residing  in  Norway."

          2.  The first sentence in Section 4.2(c) of the Plan is hereby amended
in  its  entirety  to  read  as  follows:

     "Subject  to Section 4.2(g) and the remainder of this paragraph, the Annual
     Option  shall become exercisable in installments as follows: (1) a total of
     2,000  Ordinary  Shares  may  be  purchased  through exercise of the Annual
     Option  on  or  after  the

<PAGE>
     first  anniversary  of  the  date  of  grant; (2) a total of 4,000 Ordinary
     Shares  may  be purchased through exercise of the Annual Option on or after
     the  second  anniversary  of  the  date  of grant; and (3) a total of 6,000
     Ordinary  Shares  may be purchased through exercise of the Annual Option on
     or  after  the  third  anniversary  of  the  date  of  grant."

          3.  Section  4.2(c)  of  the  Plan  is  hereby  amended  by adding the
following  new  sentence  before  the  first  sentence  in  Section  4.2(c):

     "Subject to Section 4.2(g) and the remainder of this paragraph, the Initial
     Option  shall become exercisable in installments as follows: (1) a total of
     1,333  Ordinary  Shares  may  be  purchased through exercise of the Initial
     Option  on or after the first anniversary of the date of grant; (2) a total
     of  2,666  Ordinary Shares may be purchased through exercise of the Initial
     Option  on  or after the second anniversary of the date of grant; and (3) a
     total  of  4,000  Ordinary  Shares may be purchased through exercise of the
     Initial  Option  on  or  after the third anniversary of the date of grant."

     4.  The  first  sentence in Section 4.3(c) of the Plan is hereby amended in
its  entirety  to  read  as  follows:

     "Subject  to Section 4.3(f) and the remainder of this paragraph, the Annual
     SAR shall become exercisable in installments as follows: (1) the Annual SAR
     shall be exercisable with respect to a total of 2,000 Ordinary Shares on or
     after  the first anniversary of the date of grant; (2) the Annual SAR shall
     be exercisable with respect to a total of 4,000 Ordinary Shares on or after
     the  second  anniversary of the date of grant; and (3) the Annual SAR shall
     be exercisable with respect to a total of 6,000 Ordinary Shares on or after
     the  third  anniversary  of  the  date  of  grant."

     5. Section 4.3(c) of the Plan is hereby amended by adding the following new
sentence  before  the  first  sentence  in  Section  4.3(c):

     "Subject to Section 4.3(f) and the remainder of this paragraph, the Initial
     SAR  shall  become  exercisable in installments as follows: (1) the Initial
     SAR  shall  be exercisable with respect to a total of 1,333 Ordinary Shares
     on or after the first anniversary of the date of grant; (2) the Initial SAR
     shall be exercisable with respect to a total of 2,666 Ordinary Shares on or
     after  the second anniversary of the date of grant; and (3) the Initial SAR
     shall be exercisable with respect to a total of 4,000 Ordinary Shares on or
     after  the  third  anniversary  of  the  date  of  grant."

                                        2
<PAGE>
          IN  WITNESS WHEREOF, this Second Amendment has been executed effective
as  of  May  11,  2001.

                                        TRANSOCEAN  SEDCO  FOREX  INC.

                                        By:  /s/  Eric  B.  Brown
                                           ---------------------------
                                             Eric  B.  Brown
                                             Corporate  Secretary

                                        3
<PAGE>EXHIBIT 10(a)
	
      NASD
REGULATION
An NASD Company

      June 12, 2001

      

      Ms. Debbie Potash - Turner
SunAmerica Capital Services, Inc.
733 Third
      Avenue, 3rd Floor
New York, New York
      10017-3204

 

	
      Re:
	
      Subordinated Loan Agreement

	
       
	
      Extension of Maturity Date

	
      Type:
	
      Equity

	
      Control #:
	
      10-E-SLA-10749

	
      Lender:
	
      SunAmerica Inc.

	
      Current Maturity Date:
	
      June 30, 2002

 

	
      Dear Ms. Potash - Turner:

      

      The amendment extending the maturity date of the above
      referenced agreement from June 30, 2002 to June 30, 2003 is accepted by
      the National Association of Securities Dealers, Inc.

      

      It is important to note that the limitations required by
      paragraph V, which covers Permissive Prepayments, will run from the
      effective date of the original agreement, not from the date of this
      amendment.

      

      If you have any questions regarding this Agreement or our
      acceptance thereof, please contact this office.

      

      Very truly yours,

      

      

      /s/ Gerald Dougherty

      

      Gerald Dougherty
Assistant
      Director

      GD: jr

      

      Cc: Patricia MacGeorge

       

      NASD Regulation, Inc.  District 10, One
      Liberty Plaza,  New York, NY 10006  212 858 4000

       

	
      

    

 

	
      NASD
SUBORDINATED AGREEMENT
AMENDMENT EXTENDING
      MATURITY DATE

      SL-A

      AGREEMENT
BETWEEN:

       

      Lender: SunAmerica
      Inc.

      1 SunAmerica Center, 1999
      Avenue of the Stars, 38th
      Floor
(Street Address)

      
Los Angeles
                   
         California
                 
         90067-6002
(City)             
                
      (State)          
                 (Zip)

      AND

      Broker-Dealer: SunAmerica Capital
      Services, Inc.

      
733 Third Avenue, 3rd
      Floor
(Street Address)

      
New
      York               
       New
      York                   
      10017
   (City)         
                 
        (State)           
                 (Zip)

       

      NASD ID Number: 13158
DATE FILED:
      May 21, 2001

 

	-1-
      

    

 

	
      

      SUBORDINATED LOAN
      AGREEMENT
AMENDMENT EXTENDING THE MATURITY
      DATE

                This
      Amendment No. 2 of that certain NASD Subordinated Loan
      Agreement for Equity Capital SL-5 by and between SunAmerica Inc. (the
      "Lender") and SunAmerica Capital Services, Inc. (the "Broker-Dealer")
      effective as of May 28, 1998 ("Subordinated Loan Agreement") and amendment
      thereto dated as of May 22, 2000 ("Amendment No. 1") is dated as of April
      30, 2001 ("Amendment No. 2").

                In
      consideration of the sum of $3,500,000 (the unpaid
      principal amount) and subject to the terms and conditions set forth in the
      Subordinated Loan Agreement approved by the National Association of
      Securities Dealers, Inc. ("NASD"), as amended by Amendment No. 1,
      scheduled to mature on June 30, 2002 bearing 
      Loan Number 10-E-SLA-10749, the Broker-Dealer and the
      Lender agree to extend the maturity date until July 30, 2003. This
      Amendment No. 2 shall not become effective unless and until the NASD has
      found Amendment No. 2 acceptable.

                The
      interest rate set forth in the Subordinated Loan Agreement, as amended
      by Amendment No. 1, is changed from 9.5% to 7.5% per annum effective as of
      July 1, 2002.

       

       

      (The signature page
      follows.)

       

 

	-2-
      

    

 

	
      

                IN WITNESS
      WHEREOF the parties have set their hands and seal this 30th day of April,
      2001.

 

	
      BROKER-DEALER:        
         
                                                                                  
       SUNAMERICA CAPITAL SERVICES, INC.

      

      [Seal]                                                                   
      

                                                                                                                    
      

                                                                                                                             
      By: /s/ Debbie Potash
      Turner
                                                                                                                             
             Name: Debbie Potash
      Turner
                                                                                                                             

             Title: Chief Financial Officer

       

        

      LENDER:       
                                                                                               
                  SUNAMERICA
      INC.

      [Seal]                                                                                                                       
      

                                 
                                                                                                                            
        By: /s/ James R.
      Belardi
                                                                                                                             
              Name: James R.
      Belardi
                                                                                                                            
               Title: Executive Vice President

                                                                                                    
      FOR NASD USE ONLY 

                                                                                                  
      
                                                                                             
      ACCEPTED BY:      /s/ Gerald
      Dougherty
                                                                                                                                             
      (Name)

                                                                                                                                     
      Assistant
      Director
                                                                                                                                            
       (Title)

       

                             
                 
                                                             
         EFFECTIVE DATE:  JUN 30 2002

       

                             
                 
                                                               
       LOAN NUMBER: 
10-E-SLA-10749

 

	-3-
      

      

 

	
      

      SUBORDINATED LOAN
      AGREEMENT
LENDER'S ATTESTATION

       

                   
      It is recommended that you discuss the merits of this investment with an
      attorney, accountant or some other person who has knowledge and experience
      in financial and business matters prior to executing this
      Agreement.

       

	
       
	
      1.  
	
      I have received and reviewed a copy of Appendix
      D of 17 CFR 240.15c3-l, and am familiar with its provisions.

	
       
	
      2.
	
      I am aware that the funds or securities subject
      to this Agreement are not covered by the Securities Investor Protection
      Act of 1970.

	
       
	
      3.
	
      I understand that I will be furnished financial
      statements pursuant to SEC Rule 17a-5(c).

	
       
	
      4.
	
      On the date this Agreement was entered into,
      the broker-dealer carried funds or securities for my account. (State Yes
      or No): No.

	
       
	
      5.
	
      Lender's business relationship to the
      broker-dealer is: Lender is an intermediate holding company of
      Broker-Dealer and continuously monitors fiscal status and reports of
      Broker-Dealer.

	
       
	
      6.
	If the partner or stockholder is not actively
      engaged in the business of the broker-dealer, acknowledge receipt of the
      following:

	
       
	
       
	
      a.
	
      Certified audit and accountant's certificate
      dated ___________.

	
       
	
       
	
      b. 
	
      Disclosure of financial and/or operational
      problems since the last  certified audit which required
      reporting pursuant to SEC Rule 17a-11.  (If no such reporting
      was required, state "none") _______________________.

	
       
	
       
	
      c.
	
      Balance sheet and statement of ownership equity
      dated _____________.

	
       
	
       
	
      d. 
	
      Most recent computation of net capital and
      aggregate indebtedness or aggregate debit items dated ______________
      reflecting a net capital of  $___________ and ratio of
      ___________.

	
       
	
       
	
      e. 
	
      Debt/equity as of _____________ of
      ____________.

	
       
	 	
       
	 

 

	-1-
      

    

 

	
        
	
       
	
      f. 
	Other disclosures: 
      ______________________ .
       

	
       
	 	
       
	 

	
      Dated: April 30,
      2001                                                                                         
      SUNAMERICA INC. 
      (Lender)

          
      [Seal]
                                                                                                                              By:
      /s/ James R.
      Belardi                                                                          
                                                                                                                           
               Name: James R.
      Belardi
                                                                                                                             
             Title: Executive Vice President

 

	-2-
      

    

 

	
      OFFICER'S
      CERTIFICATE

                 I,
      James R. Belardi, Executive Vice President of SunAmerica Inc., a Delaware
      corporation (this "Corporation"), do hereby certify that the
      $3,500,000 subordinated loan made by this Corporation to
      SunAmerica Capital Services, Inc., amended to mature on June 30, 2003,
      does not cause the aggregate principal amount of all outstanding loans
      made by this Corporation to its broker-dealer subsidiaries to exceed $75
      million.

       

      Dated: April 30,
      2001                                                                                           /s/
      James R.
      Belardi
                                                                                                                        
            James R. Belardi, Executive Vice
      President 
                        [Seal]                                                                                            
      

      
 

 

	 
      

    

 

	
      

      SUNAMERICA INC.

      CERTIFICATE OF ASSISTANT
      SECRETARY 

           I, the undersigned, the duly
      elected, qualified and acting Assistant Secretary of SunAmerica Inc., a
      Delaware corporation (the "Corporation"), do hereby certify that the
      following resolutions were adopted by unanimous written consent by the
      Executive Committee of the Board of Directors of the Corporation on the
      7th day of May 2001, and that said resolutions are in full force and
      effect as of the date hereof: 

      Blanket Authorization of
      Subordinated Loan Agreements for Equity
  Capital

	
      
          WHEREAS,
      this Corporation, from time to time, reviews the net capital infusion
      needs of its wholly-owned broker-dealer subsidiaries, registered with the
      Securities and Exchange Commission and members of the National Association
      of Securities Dealers, Inc., which include, but not limited to, SunAmerica
      Capital Services, Inc., Advantage Capital Corporation, SunAmerica
      Securities, Inc., Royal Alliance Associates, Inc., Sentra Securities
      Corporation, Spelman & Co., Inc. and FSC Securities Corporation, and
      in conjunction with such review intends to provide subordinated loans to
      such subsidiaries pursuant to Subordinated Loan Agreements for Equity
      Capital; 

               
      WHEREAS, it is in the best interests of this Corporation to provide
      blanket authorization for such subordinated loan transactions, which
      authorization shall supercede any prior authorization; 

               
      NOW, THEREFORE, BE IT RESOLVED that the Chairman, any Vice Chairman, any
      Executive Vice President, or the Treasurer (the "Designated Officers"),
      acting alone, be, and each hereby is authorized to effect subordinated
      loans to the wholly-owned broker-dealer subsidiaries of the Corporation,
      in an aggregate principal amount not to exceed Seventy-five Million
      Dollars ($75,000,000), and such authority shall supercede any prior
      authorization; and to make, execute and deliver such loan agreements and
      other documents evidencing such loans, including any Subordinated Loan
      Agreement for Equity Capital, as deemed necessary or
      appropriate; 

               
      RESOLVED FURTHER that each of the Designated Officers are hereby
      authorized to make such changes in the terms and conditions of such
      Subordinated Loan Agreements as may be necessary to conform to the
      requirements of Title 17 CFR §240.15c 3-1d and the rules of the National
      Association of Securities Dealers;
and 

 

	 
      

      

 

	
               
      RESOLVED FURTHER that the Executive Committee hereby ratifies any and all
      action that may have been taken by the officers of this Corporation in
      connection with the foregoing resolutions and authorizes the officers of
      this Corporation to take any and all such further actions as may be deemed
      appropriate to reflect these resolutions and to carry out their tenor,
      effect and intent. 

                IN
      WITNESS WHEREOF, the undersigned has executed this Certificate and affixed
      the seal of the Corporation this 7th day of May, 2001. 

                                                                                                             
            /s/ Lawrence M.
      Goldman
                                                                                                             
      Lawrence M. Goldman
                                                                                                              Assistant
      Secretary

       

      (Corporate Seal)

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