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  CONTENTS

 
 

Exhibit 4.56    
  

Execution
version 

    

DATED 21 FEBRUARY 2003  

 DEED OF AMENDMENT, RELEASE AND CONSENT  

 in relation to a  

 REVOLVING CREDIT FACILITY AGREEMENT

of up to US$600,000,000  

 to  

 BLUEWATER HOLDING B.V.

BLUEWATER ENERGY SERVICES B.V.

BLUEWATER OFFSHORE PRODUCTION SYSTEMS LIMITED

BLUEWATER (HAEWENE BRIM) N.V.

RANBERGER HOLDING N.V.

LULUDIA ASSET FINANCE B.V.

REFUGIO B.V.  

 provided by

the banks and financial

institutions named herein  

 arranged by  

 BARCLAYS CAPITAL

FORTIS BANK NEDERLAND N.V.

and

ING BANK N.V.  

 

    

Norton Rose  

 

CONTENTS    
  

 

	Clause
 

	1      Definitions
	

2      Interpretation
	

3      Amendments
	

4      Reassignment, release, discharge and termination
	

5      Consents
	

6      Effective Time
	

7      Appointment of Escrow Agent
	

8      Law and jurisdiction
	

9      Escrow Agent
	

10    Miscellaneous
	

Schedule 1 Amendments to Transaction Documents
	

Schedule 2 Form of BH Account Charge
	

Schedule 3 Reduction Schedule
	

Schedule 4 BH Corporate Documents
	

Schedule 5 Lessor Notice
	

Schedule 6 Facility Agent Notice
	

Schedule 7 Conditions precedent

  

THIS DEED is dated 21 February 2003 and made BETWEEN:

	(1)
	RANBERGER HOLDING N.V., LULUDIA ASSET FINANCE B.V. and REFUGIO
B.V., as Borrowers;

	(2)
	BLUEWATER OFFSHORE PRODUCTION SYSTEMS LIMITED;

	(3)
	BLUEWATER ENERGY SERVICES B.V., as Bluewater Agent;

	(4)
	HILL SAMUEL LEASING (NO.4) LIMITED, as Lessor;

	(5)
	ALICE EXPLORATION FOUNDATION, ARIEL EXPLORATION FOUNDATION and  ASTERIX EXPLORATION
FOUNDATION, as Standby Purchasers;

	(6)
	ING BANK N.V., as Facility Agent, Glas Dowr L/C Bank, RBV Owner and LBV Owner;

	(7)
	BARCLAYS BANK PLC, as General Security Trustee, Credit Security Trustee, Facility Security Trustee, Uisge Gorm Assumption Bank, Bleo
Holm Topsides Assumption Bank and Bleo Holm Topsides L/C Bank; and

	(8)
	NORTON ROSE, as Escrow Agent. 

THIS DEED WITNESSES AND IT IS HEREBY AGREED as follows: 

 
 

1      Definitions    
  

In
this Deed, words and expressions shall, unless the context otherwise requires, bear the meanings attributed to them in the Deed of Proceeds and Priorities, and: 

"Deed of Proceeds and Priorities" means the deed entitled "Trust Deed and Deed of Proceeds and Priorities" dated 28 January 2002 and made between
(1) the banks and financial institutions listed in schedule 1 thereto, (2) ING Bank N.V., Barclays Bank PLC, acting through its investment banking division, Barclays Capital, and
Fortis Bank (Nederland) N.V., as arrangers, (3) ING Bank N.V., as facility agent, (4) Barclays Bank PLC, acting through its investment banking division, Barclays Capital, as technical
bank, (5) Barclays Bank PLC, as general security trustee, (6) Barclays Bank PLC, as credit security trustee, (7) Barclays Bank PLC, as facility security trustee,
(8) Bluewater Holding B.V., Bluewater Energy Services B.V., Bluewater Offshore Production Systems Limited, Bluewater (Haewene Brim) N.V., Bluewater (Munin) N.V., Ranberger Holding N.V., Luludia
Asset Finance B.V. and Refugio B.V. as borrowers and security parties, (9) Aurelia Energy N.V., Bluewater (Bleo Holm) N.V., Bluewater (Floating Production) Limited, Bluewater (Glas Dowr) N.V.,
Bluewater (Malta) Limited, Bluewater (New Hull) N.V., Bluewater (UK) Limited, Bluewater Energy N.V., Bluewater Equipment Leasing Limited, Bluewater Offshore Production Systems N.V., Bluewater
Operations (UK) Limited, Bluewater Terminal Systems N.V., Bluewater Norway ANS, Lufeng Development Company ANS, Pierce Production Company Limited, Bluewater Brasil Ltda., Bluewater Floating
Productions B.V., Bluewater International B.V., Bluewater Offshore Production Systems Nigeria Limited, Bluewater Offshore Production Systems (USA) Inc., Bluewater Services (UK) Limited and Bleo
Holm Standby Purchaser N.V. as guarantors and security parties, (10) Bluewater Energy Services B.V., as Bluewater agent, (11) Hill Samuel Leasing (No. 4) Limited, as lessor,
(12) Ariel Exploration Foundation, Alice Exploration Foundation and Asterix Exploration Foundation, as standby purchasers, (13) ING Bank N.V., acting through its Amsterdam head office,
as equipment account bank, and (14) ING Bank N.V., acting through its Amsterdam head office, as security trustee account bank; 

"BH Account Charge" means the account charge entered into or to be entered into by BH in favour of the General Security Trustee in relation to the BH
Assigned Account, in the form attached as schedule 2; 

1

 

"BH Assigned Account" means the interest bearing Dollar account of BH with the Account Bank designated "BH Assigned Account" with account number
02.00.16.107, and includes any redesignation and sub-accounts thereof; 

"BH Corporate Documents" means together the managing director's certificate, the board resolutions and the shareholders resolutions, each in the form
attached as the relevant part of schedule 4; 

"Business Day" has the meaning given to that expression in the Glas Dowr Head Lease; 

"Effective Time" means the time determined in accordance with clause 6.1; 

"Facility Agent Notice" means a notice in the form and terms of schedule 6; 

"Guarantees" means together the Facility Guarantee, the Lessor Guarantee, the Uisge Gorm Payment Agreement Guarantee, the Glas Dowr L/C Guarantee, the
Bleo Holm Topsides Payment Agreement Guarantee, the Bleo Holm Topsides L/C Guarantee, the RBV Guarantee, the RBV Documents Guarantee, the LBV Guarantee and the LBV Documents Guarantee; 

"Lessor Notice" means a notice in the form and terms of schedule 5; and 

"Termination Event" has the meaning given to that expression in the Glas Dowr Head Lease. 

 
 

2      Interpretation    
  

	2.1
	Clause
headings and the table of contents are inserted for convenience of reference only and shall be ignored in the interpretation of this Deed.

	2.2
	In
this Deed, unless the context otherwise requires:

	2.2.1
	references
to clauses and schedules shall be construed as references to the clauses of and schedules to this Deed and references to this Deed include the schedules;

	2.2.2
	references
to (or to any specified provision of) this Deed or any other document shall be construed as references to this Deed, that provision or that document as in force for the
time being and as amended in accordance with the terms thereof with the consent of all relevant parties pursuant to any relevant provision of the Deed of Proceeds and Priorities (including, without
limitation, clause 16.3 thereof);

	2.2.3
	references
to a "regulation" include any regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any Government Entity;

	2.2.4
	words
importing the plural include the singular and vice versa;

	2.2.5
	references
to a time of day are to the time in London, England on the relevant day; and

	2.2.6
	references
to a statutory provision shall be construed as references to that provision as from time to time replaced, amended and re-enacted. 

	2.3
	References
in this Deed to the Facility Agent, the Technical Bank, the General Security Trustee, the Credit Security Trustee, the Facility Security Trustee, any Arranger or any Bank
and references to all or any obligations and liabilities of any one or more of those persons shall be strictly construed as references to that person or (as the case may be) those obligations and
liabilities of that person solely in its capacity as such. 

 
 

3      Amendments    
  

As
of and with effect from the Effective Time, certain of the Transaction Documents shall be, and they are hereby, amended in the manner set forth in schedule 1. 

2

 

 
 

4      Reassignment, release, discharge and termination    
  

As
of and with effect from the Effective Time, the General Security Trustee hereby: 

	4.1
	unconditionally
and irrevocably reassigns, releases and discharges all rights, title, interests and benefit, present and future, assigned, charged and/or pledged to it pursuant to the
BOPS Account Charge; and

	4.2
	expressly
agrees that all obligations and liabilities owed by BOPS under the BOPS Account Charge shall be and are hereby terminated and BOPS is accordingly released from all such
obligations and liabilities. 

 
 

5      Consents    
  

	5.1
	Each
of the parties hereto hereby expressly, in each case, for all purposes of the Transaction Documents and to the extent that such consent is required, acknowledges and consents to:

	5.1.1
	the
entry into by each of the other parties hereto of this Deed;

	5.1.2
	the
entry into by each of the parties thereto of the BH Account Charge;

	5.1.3
	the
amendments effected pursuant to clause 3; and

	5.1.4
	the
reassignment, release, discharge and termination effected pursuant to clause 4, 

and
expressly waives all or any breaches of the terms of the Transaction Documents which would otherwise occur as a result of any of the foregoing matters. 

	5.2
	The
Lessor hereby expressly, for all purposes of the Transaction Documents and to the extent that such consent is required, acknowledges and consents to:

	5.2.1
	the
tow of the Glas Dowr Vessel from its current location (being Aker McNulty, Commercial Road, South Fields, Tyne & Wear, NE33 IRZ, United Kingdom) to Verolme Botlek, Prof.
Gerbrandyweg 25, Amsterdam-Botlek, Harbour number 4550 (the "Rotterdam Location"); and

	5.2.2
	the
location of the Glas Dowr Vessel at the Rotterdam Location;

	5.2.3
	the
tow of the Glas Dowr Vessel from the Rotterdam Location to "A' berth, Duncan Dock, Cape Town Harbour, Cape Town, the Republic of South Africa (the "South
Africa Location");

	5.2.4
	the
completion of certain modifications to the Glas Dowr Vessel at the Rotterdam Location and/or the South Africa Location pursuant to a Form of Agreement effective as of 12
July 1999 between BUK and Aker McNulty Limited in relation thereto; and

	5.2.5
	

	(a)
	the
tow of the Glas Dowr Vessel from the South Africa Location to the initial location at which the Glas Dowr Vessel is to be moored for the purpose of producing oil under the terms
of the Current Glas Dowr Soekor Contract (the "Initial Soekor Location"), and the mooring and hook-up of the Glas Dowr Vessel at the Initial
Soekor Location; and 

3

 

	(b)
	the
towage to and mooring and hook-up at any location at which Soekor can require the Glas Dowr Vessel to be operated under the Current Glas Dowr Soekor Contract which is
within South African territorial waters, subject to (i) BUK providing at least twenty-eight (28) Business Days advance notice to the Lessor of the applicable relocation and
(ii) the Lessor not having withdrawn such consent by notice in writing to the Lessee and BUK, which it shall be entitled to do following receipt of the notice above only where (A) any
Termination Event has occurred which is continuing, or (B) the Lessor certifies in good faith that, had such consent been requested at that time, the Lessor would (in line with its normal
credit process) have refused such consent, or (C) the Lessor is not satisfied (acting reasonably) with its increased exposure to liability in view of its interest in the Glas Dowr Vessel by
reference to laws in any jurisdiction which would be applicable to the Glas Dowr Vessel or claims relating to the Glas Dowr Vessel in the new location which are either then in force or which the
Lessor (acting reasonably) considers likely to come into force in any such jurisdiction. 

 
 

6      Effective Time    
  

 
  6.1  Determination of Effective Time    
    
        The Effective Time will be the time at which the Escrow Agent shall have received each of (i) the
Facility Agent Notice, signed on behalf of the Facility Agent, and (ii) the Lessor  Notice signed on behalf of the Lessor (and, for the avoidance of doubt, if the Escrow Agent receives either or both of the Facility Agent Notice and the Lessor
Notice at different times, the Effective  Time shall be the time at which the Escrow Agent has received both the Facility Agent Notice and the Lessor Notice), as notified by the Escrow Agent to the Facility Agent, the Bluewater Agent and the  Lessor
pursuant to clause 6.3.    

 
 

6.2  Facility Agent Notice and Lessor Notice    
  

	6.2.1
	The
Lessor hereby undertakes to each of the other parties hereto that it will, promptly following the satisfaction and/or waiver of the conditions precedent detailed in
schedule 7, sign and issue the Lessor Notice to the Escrow Agent, in accordance with clause 6.3.

	6.2.2
	The
Facility Agent hereby undertakes to each of the other parties hereto that it will, promptly following the satisfaction and/or waiver of the conditions precedent detailed in
schedule 7, sign and issue the Facility Agent Notice to the Escrow Agent, in accordance with clause 6.3. 

 
 

6.3  Manner of issue of Facility Agent Notice and Lessor Notice    
  

The
Facility Agent Notice and the Lessor Notice shall be issued to the Escrow Agent by facsimile, to fax number +33 1 53 85 56 56, marked for the urgent attention of Alison Baxter/Jill Whalley.
Promptly following the occurrence of the Effective Time, the Escrow Agent shall notify each of the Facility Agent, the Bluewater Agent and the Lessor thereof (and shall attach to that notification
copies of the Facility Agent Notice and the Lessor Notice) as follows: 

	6.3.1
	in
the case of the Facility Agent, by facsimile transmission, to fax number +3120 563 5164, marked for the urgent attention of Cornelie Goedhuis/Tristan Lapoutre, or delivered by
hand to the aforementioned individual; 

4

 

	6.3.2
	in
the case of the Bluewater Agent, by facsimile transmission, to fax number +3123 554 2112, marked for the urgent attention of Kees Voormolen, or delivered by hand to any of the
aforementioned individuals, with a copy to Watson Farley & Williams by facsimile transmission to fax number +44 20 7814 8141, marked for the urgent attention of Mark Lawson or for the attention
of such other or additional person, being a partner or employee of Watson Farley & Williams, whom Mark Lawson may notify in writing to the Escrow Agent, or delivered by hand to any of the
aforementioned individuals; and

	6.3.3
	in
the case of the Lessor, by facsimile transmission, to fax number +44 207 822 1974, marked for the urgent attention of the Managing Director, or delivered by hand to the
aforementioned individual with a copy to Norton Rose by facsimile transmission to fax number +44 20 7283 6500, marked for the urgent attention of Anya Page, or delivered by hand to the aforementioned
individual. 

 
 

7      Appointment of Escrow Agent    
  

Each
of the parties hereto who is expressed to be a party to the BH Account Charge hereby irrevocably and unconditionally appoints Norton Rose to act as its escrow agent as follows: 

	7.1
	until
the Effective Time, to hold the BH Account Charge, with effect from the time at which it is delivered into the possession of the Escrow Agent (whether in original, electronic
and/or faxed signed version), in escrow and subject to and in accordance with the terms of this Deed; and

	7.2
	upon
the occurrence of the Effective Time, to date, release and deliver the BH Account Charge and thereafter to hold the BH Account Charge to the order of the parties thereto and to
take all steps necessary or desirable to effect the registration in any relevant jurisdiction of the BH Account Charge, forthwith or, if registration is not required forthwith, within any applicable
time limit. 

 
 

8      Law and jurisdiction    
  

 
  8.1  Law    
  

This
Deed is governed by, and shall be construed in accordance with, the laws of England and Wales. 

5

 

 
 

8.2  Submission to jurisdiction    
  

For
the benefit of the General Security Trustee and each other Beneficiary, each of the Limited Recourse Companies, BOPS, the Bluewater Agent and each Standby Purchaser irrevocably and unconditionally
agrees that any legal action or proceeding arising out of or in connection with this Deed may be brought in the English courts, which shall have jurisdiction to settle or determine any dispute or
claim arising out of or in connection with this Deed, and irrevocably and unconditionally submits to the exclusive jurisdiction of the English courts. Each of the Limited Recourse Companies
irrevocably and unconditionally designates, appoints and empowers Norose Notices Limited at the address of its registered office for the time being (presently of Kempson House, Camomile Street, London
EC3A 7AN, England) (marked for the attention of the Director of Administration, reference AJBD/AA44998), BOPS and the Bluewater Agent irrevocably and unconditionally designates, appoints and empowers
WFW Legal Services Limited at the address of its registered office for the time being (presently of 15 Appold Street, London EC2A 2HB, England), and each Standby Purchaser irrevocably and
unconditionally designates, appoints and empowers WFW Legal Services Limited at the address of its registered office for the time being (presently of 15 Appold Street, London EC2A 2HB, England), in
each case to receive, for it and on its behalf, service of process issued out of the English courts in any legal action or proceeding arising out of or in connection with this Deed. The submission to
such jurisdiction shall not (and shall not be construed so as to) limit the right of the General Security Trustee or any other Beneficiary to take any legal action or proceeding against any of the
Limited Recourse Companies, BOPS, the Bluewater Agent and the Standby Purchasers in any other court of competent jurisdiction nor shall the taking of any legal action or proceeding in any one or more
jurisdictions preclude the taking of any legal action or proceeding in any other jurisdiction, whether concurrently or not. Each of the Limited Recourse Companies, BOPS, the Bluewater Agent and each
Standby Purchaser agrees that only the English courts and not those of any other jurisdiction shall have jurisdiction to settle and determine any dispute or claim which any of the Limited Recourse
Companies, BOPS, the Bluewater Agent and the Standby Purchasers may have against the General Security Trustee or any other Beneficiary arising out of or in connection with this Deed. 

 
 

9      Escrow Agent    
  

 
  9.1  Duties    
  

The
Escrow Agent shall have no duties, obligations or liabilities whatsoever to the other parties hereto or any of them beyond those expressly stated in this Deed. 

 
 

9.2  Liability    
  

The
Escrow Agent shall not be liable to any other party hereto for, or otherwise in connection with, any action taken or omitted in good faith under or pursuant to, or otherwise in connection with,
this Deed. 

 
 

9.3  Reliance    
  

The
Escrow Agent shall be entitled to rely on any communication, instrument or document believed by it to be genuine and correct and to have been signed or sent by or on behalf of the proper person. 

6

 

 
 

9.4  Indemnity    
  

Each
of the Banks shall indemnify the Escrow Agent against all Losses paid, suffered or incurred by the Escrow Agent in the performance of the duties and functions delegated to it under this Deed or
as a result of, or otherwise in connection with, any action taken or omitted by the Escrow Agent under or pursuant to this Deed. Aurelia Energy shall indemnify each of the Banks against all Losses
paid, suffered or incurred by it pursuant to the foregoing sentence of this clause 9.4. 

 
 

9.5  Determination by Escrow Agent    
  

The
Escrow Agent shall have full power to determine all questions and doubts arising in relation to the interpretation or application of any provision of this Deed which affects the Escrow Agent and
each such determination whether made upon a question actually raised or implied in the acts of the Escrow Agent shall be conclusive and shall bind all of the other parties hereto. 

 
 

9.6  Illegality    
  

The
Escrow Agent may refrain from doing anything which would be or might, in its opinion, be contrary to any law of any jurisdiction or any regulation or which would or might render it liable to any
person and may do anything which is, in its opinion, necessary to comply with any such law or regulation. 

 
 

10      Miscellaneous    
  

 
  10.1 Counterparts    
  

This
Deed may be entered into in the form of two or more counterparts, each executed by one or more of the parties hereto, and, provided all the parties hereto shall so execute this Deed, each of the
executed counterparts, when duly exchanged or delivered, shall be deemed to be an original but, taken together, they shall constitute one instrument. 

 
 

10.2 English language    
  

All
certificates, instruments and other documents to be delivered under or supplied in connection with this Deed shall be in the English language or shall be accompanied by a certified English
translation upon which the recipient shall be entitled to rely. 

 
 

10.3 Severability of provisions    
  

Each
of the provisions of this Deed is severable and distinct from the others and if at any time one or more of those provisions is or becomes invalid, illegal or unenforceable under the laws of any
jurisdiction neither the validity, legality and enforceability of the remaining provisions of this Deed nor the validity, legality and enforceability of those provisions in any other jurisdiction
shall in any way be affected or impaired thereby. 

 
 

10.4 Contracts (Rights of Third Parties) Act 1999    
  

Any
person who is not a party to this Deed shall have no right under the Contracts (Rights of Third Parties) Act 1999 to enforce its terms. 

7

 

 
 

10.5 Assignees and pledgees    
  

Each
party hereto which is an assignee of the rights of any other party hereto agrees that, as such assignee and/or pledgee, it shall be bound by any restrictions on the exercise of those rights
imposed on the assignor and/or pledgor by any provision of this Deed. 

 
 

10.6 Transaction Document    
  

It
is agreed that this Deed shall be a Facility Document and a Transaction Document, in each case, for all purposes of the Transaction Documents. 

IN WITNESS whereof this Deed has been duly executed as a deed and delivered the day and year first above written 

8

  

 
 

Schedule 1
  
    Amendments to Transaction Documents    
  

 
  1      Definitions—schedule 9 to the Credit Agreement and schedule 2 to the Deed of Proceeds and Priorities    
  

	(a)
	In
each of schedule 9 to the Credit Agreement and schedule 2 to the Deed of Proceeds and Priorities, the definition identified below shall be deleted and replaced with
the corresponding definition set out below: 

"
"Acceptable Hedging Arrangements" means interest and currency exchange hedging documents and transactions entered into by any Security Party which is
an Aurelia Energy Group Member, in each case acceptable to the Facility Agent, in amounts and on terms sufficient and appropriate to control the Aurelia Energy Group's potential exposure, for the
whole of the Facility Security Period, to future variations in interest rates and/or currency exchange rates in respect of an amount which is from time to time: 

	(i)
	not
less than the amount of all of the Minimum Contract Earnings from time to time; and

	(ii)
	not
more than the lesser of (i) the Borrowing Base Amount from time to time, (ii) the Facility Amount from time to time, and (iii) (subject always to
(a) above) the amounts which the Bluewater Agent determines, at the time at which the relevant interest or exchange hedging arrangement is entered into, to be the anticipated interest and
currency exposure of the Borrowers determined by reference to the period for repayment of, and the amount from time to time of, the Credit;" 

	(b)
	In
each of schedule 9 to the Credit Agreement and schedule 2 to the Deed of Proceeds and Priorities, the definitions of BOPS Assigned Account and BOPS Account Charge
shall be deleted, and the following definitions shall be inserted: 

"
"BH Account Charge" means the account charge entered into or to be entered into by BH in favour of the General Security Trustee in relation to the BH
Assigned Account, in the form attached as schedule 2; 

"BH Assigned Account" means the interest bearing Dollar account of BH with the Account Bank designated "BH Assigned Account" with account number
02.00.16.107, and includes any redesignation and sub-accounts thereof;" 

 
 

2      Clause 2.5.5 of the Credit Agreement    
  

Clause 2.5.5
of the Credit Agreement shall be deleted and replaced with a new clause 2.5.5 as follows: 

"2.5.5    Reductions
in Maximum Available Amount 

Whenever
it is necessary to determine the Maximum Available Amount for the purposes of determining the amount of an Advance pursuant to this clause 2.5, the Maximum Available Amount shall be
reduced: 

	(a)
	by
the aggregate of:

	(i)
	the
Credit as at the date on which that Advance is to be made (as specified in the Drawdown Notice relating to that Advance) ("relevant
date") (and for this purpose the Credit shall not include the amount of that Advance); and 

9

 

	(ii)
	the
sum of:

	(A)
	the
amount (if any) by which (x) the sum of the total amount of all interest which has accrued and will accrue in the future (but has not been paid) during the period
commencing on the immediately preceding Repayment Date (or, if there is no immediately preceding Repayment Date, commencing on the day on which the first Advance is drawn down) and terminating on the
relevant date (the "initial period") (taking into account the amount of that Advance), in each case, in accordance with clause 3.1, plus the
total amount of all Hedging Payments which have fallen due and will fall due in the future (but have not been paid) during the initial period, exceeds (y) the total amount of all Hedging
Receipts which have been received or are scheduled to be received during the initial period; plus

	(B)
	the
total amount of all commitment commission which has accrued and will accrue in the future (but has not been paid) during the initial period (taking into account the amount of that
Advance), in each case, in accordance with clause 5.1.2; and 

	(b)
	if,
during the initial period, any monies have been transferred from the Assigned Accounts of the Borrowers by or at the request of the Borrowers pursuant to clause 2.8.8 and
applied in repayment or prepayment of the Credit during the initial period, the lesser of:

	(i)
	the
sum of:

	(A)
	the
Minimum Repayment Amount as at the Repayment Date immediately succeeding the relevant date; plus

	(B)
	the
amount (if any) by which (x) the sum of the total amount of all interest which has accrued and will accrue in the future (but has not been paid) during the period
commencing on the relevant date and terminating on the Repayment Date immediately succeeding the relevant date (the "subsequent period") (taking into
account the amount of that Advance), in each case, in accordance with clause 3.1, plus the total amount of all Hedging Payments which have fallen due and will fall due in the future (but have
not been paid) during the subsequent period, exceeds (y) the total amount of all Hedging Receipts which have been received or are scheduled to be received during the subsequent period; plus

	(C)
	the
total amount of all commitment commission which has accrued and will accrue in the future (but has not been paid) during the subsequent period (taking into account the amount of
that Advance), in each case, in accordance with clause 5.1.2; and 

	(ii)
	the
amount of the monies so transferred and applied in repayment or prepayment of the Credit during the initial period; and 

	(c)
	by
any amount determined under the applicable provisions of clauses 2.6.1, 2.6.2 and 2.8. 

10

 

 
 

3      Clause 2.8.8 of the Credit Agreement    
  

Clause 2.8.8
of the Credit Agreement shall be amended by the deletion of paragraph (a) of the proviso thereto and its replacement with a new paragraph (a) as follows: 

	"(a)
	the
 amount of monies to be transferred from the Assigned Accounts of the Borrowers shall not exceed: 

a—b 

(each
calculated as at the date falling five (5) Banking Days before the date on which that prepayment is to be made (as specified in that notice)), where: 

a =
the aggregate of the Assigned Monies standing to the credit of each of the Assigned Accounts 

b =
the aggregate of the Proceeds standing to the credit of each of the Assigned Accounts of the Equipment Lessors and the Standby Purchasers respectively." 

 
 

4      Clause 4.1.1 of the Credit Agreement    
  

Clause 4.1.1
of the Credit Agreement shall be deleted and replaced with a new clause 4.1.1 as follows: 

	 	"4.1.1.	On each Repayment Date ("First Repyament Date"), the Borrowers shall pay to the Facility Agent for the account of the Banks, in or towards repayment of the Credit (other than
the L/C Undrawn Advances, if any), an amount which is not less than the greater of:

	(a)
	the
amount which is equal to:

	(i)
	the
aggregate of all Earnings other than Non-Restricted Earnings and all other amounts constituting, or relating to, the Assigned Property or any part thereof received by
the Borrowers or any of them during the period ("relevant period") commencing on the day falling five (5) Banking Days before the immediately
preceding Repayment Date (or, if there is no immediately preceding Repayment Date, commencing on the day on which the first Advance is drawn down) (the "Relevant
Date") and terminating on the day falling five (5) Banking Days before the First Repayment Date; minus

	(ii)
	the
lesser of:

	(A)
	the
aggregate of the Assigned Monies standing to the credit of each of the Assigned Accounts as at the Relevant Date minus the aggregate of the Proceeds standing to the credit of each
of the Assigned Accounts of the Equipment Lessors and the Standby Purchasers respectively as at the Relevant Date; and 

11

 

	(B)
	the
aggregate of the total amount of all commitment commission which has accrued and will accrue in the future (but has not been paid) during the relevant period, in each case, in
accordance with clause 5.1.2, and the amount (if any) by which (1) the sum of the total amount of all interest which has accrued and will accrue in the future (but has not been paid)
during the relevant period, in each case, in accordance with clause 3.1, plus the total amount of all Hedging Payments which have fallen due and will fall due in the future (but have not been
paid) during the relevant period, exceeds (2) the total amount of all Hedging Receipts which have been received or are scheduled to be received during the relevant period; minus 

	(iii)
	the
amount or, as the case may be, amounts prepaid by the Borrowers pursuant to clause 2.8.8 during the relevant period; and 

	(b)
	the
Minimum Repayment Amount in relation to the First Repayment Date." 

 
 

5      Schedule 4 to the Credit Agreement    
  

Schedule 4
to the Credit Agreement shall be deleted and replaced with a new schedule 4 in the form attached hereto as schedule 3. 

 
 

6      Clause 7.1.5 of each of the Guarantees    
  

Clause 7.1.5
of each of the Guarantees shall be deleted and replaced with a new clause 7.1.5 as follows: 

"7.1.5    financial
statements 

in
the case of Aurelia Energy, properly prepare or cause to be properly prepared (a) financial statements in respect of each financial year and financial statements in respect of the first half
of each financial year (on the same basis as the annual financial statements), and (b) future financial projections (in form and terms sufficient to enable the Bluewater Agent to make all
necessary calculations and determinations in connection with the covenants set out in clause 7.1.22) and will in each case deliver as many copies of those financial statements and future
financial projections as the Facility Agent may reasonably request to the Facility Agent as soon as practicable but in any event not later than one hundred and twenty (120) days (in the case of
annual financial statements) or ninety (90) days (in the case of semi-annual financial statements) after the end of the financial period to which they relate, and all financial
statements delivered hereunder shall be accompanied by the corresponding financial projections referred to above;" 

 
 

7      Clause 7.1.23 of each of the Facility Guarantee and the Lessor Guarantee and clause 7.1.16 of each of the other Guarantees    
  

In
order to achieve consistency with the terms of the Credit Agreement, in clause 7.1.23 of each of the Facility Guarantee and the Lessor Guarantee and in clause 7.1.16 of each of the
other Guarantees, the words "there has been no change in the effective ultimate ownership of the Aurelia Energy Group" shall be deleted and replaced with the words "Aurelia Energy is effectively
ultimately owned by the Hugo Heerema family or related trust arrangements". 

12

 

 
 

8      Clause 16 of the Facility Guarantee    
  

There
shall be added a new clause 16.6 of the Facility Guarantee as follows: 

"16.6    Obligations
and liabilities 

Notwithstanding
anything else to the contrary in any Facility Document, the Guarantors are jointly and severally liable for each of their obligations and liabilities under and pursuant to this
Guarantee and each of the other Facility Documents and those obligations and liabilities shall be construed accordingly. Each Guarantor acknowledges and confirms that it is a principal and original
debtor in respect of all amounts which may become payable by any Guarantor under and pursuant to this Guarantee and the other Facility Documents and agrees that each Beneficiary may also treat it as
such, whether or not any Beneficiary is or becomes aware that that Guarantor is or has become a surety for any other Guarantor. Unless otherwise expressly provided in this Guarantee or any other
Facility Document, each covenant, guarantee, undertaking, agreement, obligation and liability made, given, undertaken, assumed or incurred by any Guarantor or the Bluewater Agent under this Guarantee
or any other Facility Document shall be performed, satisfied and discharged at the cost and expense of that Guarantor or the Bluewater Agent and at no cost or expense to any Beneficiary." 

 
 

9      Clause 7.2 of the BBH Account Charge    
  

Clause 7.2
of the BBH Account Charge shall be deleted and replaced with a new clause 7.2 as follows: 

	"7.2
	The
Pledgor shall from time to time withdraw from the Account (and, for this purpose, the Pledgor authorises and directs the Facility Agent as agent of the Pledgee (pursuant to
clause 7.18 of the Deed of Proceeds and Priorities) to procure the withdrawal and transfer of) (i) by transfer to the BH Assigned Account, the amount or amounts then due and payable by
the Pledgor to BH (as economic transferee of BOPS pursuant to the Economic Sale Agreement) under and pursuant to the Bleo Holm Credit Agreement and the BOPS/BBH Side Letter (or either of them) (or, if
less, the balance of the Account Receivables at that time in relation to the Account), and (ii) by payment to the Hedging Providers entitled to receive the same, the amount of the Hedging
Payments then due and payable under and pursuant to the Assigned Hedging Agreements or any of them (or, if less, the balance of the Account Receivables at that time in relation to the Account). 

The
Pledgor covenants to the Pledgee that it will pay to the BH Assigned Account all amounts payable by it to BH (as economic transferee of BOPS pursuant to the Economic Sale Agreement) under and
pursuant to the Bleo Holm Credit Agreement or the BOPS/BBH Side Letter. 

Provided
however that, at all times after a Facility Event (or, following the end of the Facility Security Period, a Termination Event) has occurred, the foregoing provisions of this Clause 7.2
shall be subject in all respects to the provisions of Clauses 7.7 and 7.8." 

13

 

 
 

10    Clause 7.2 of the BML Account Charge    
  

Clause 7.2
of the BML Account Charge shall be deleted and replaced with a new clause 7.2 as follows: 

	"7.2
	The
Pledgor shall from time to time withdraw from the Account (and, for this purpose, the Pledgor authorises and directs the Facility Agent as agent of the Pledgee (pursuant to
clause 7.18 of the Deed of Proceeds and Priorities) to procure the withdrawal and transfer of) (i) by transfer to the BBH Assigned Account, the amount or amounts then due and payable by
the Pledgor to BBH under and pursuant to the Bleo Holm Prior Lease or the BOPS/BBH Side Letter (or, if less, the balance of the Account Receivables at that time in relation to the Account),
(ii) by transfer to the BH Assigned Account, the amount or amounts then due and payable by the Pledgor under and pursuant to the BOPS/BML Side Letter (or, if less, the balance of the Account
Receivables at that time in relation to the Account), and (iii) by payment to the Hedging Providers entitled to receive the same, the amount of the Hedging Payments then due and payable under
and pursuant to the Assigned Hedging Agreements or any of them (or, if less, the balance of the Account Receivables at that time in relation to the Account). 

The
Pledgor covenants to the Pledgee that it will pay to the BBH Assigned Account all amounts payable by it to BBH under and pursuant to the Bleo Holm Prior Lease. 

The
Pledgor covenants to the Pledgee that it will pay to the BH Assigned Account all amounts payable by it to BH (as economic transferee of BOPS pursuant to the Economic Sale Agreement) under and
pursuant to the BOPS/BML Side Letter or the BOPS/BML Credit Agreement. 

Provided
however that, at all times after a Facility Event (or, following the end of the Facility Security Period, a Termination Event) has occurred, the foregoing provisions of this Clause 7.2
shall be subject in all respects to the provisions of Clauses 7.7 and 7.8." 

 
 

11    Clause 6 of the Deed of Proceeds and Priorities    
  

Clause 6
of the Deed of Proceeds and Priorities shall be deleted. 

 
 

12    Glas Dowr Head Lease    
  

	(a)
	In
clause 12.5(c), insert "(i)" after "LBV" in line 1, insert "(ii)" in line 5 after "CAA and", insert "(iii) shall" after "CAA and" in line 9 and insert "(iv)" after
"thereof and" in line 12.

	(b)
	In
clause 15.1(d), insert "or its obligations under 12.5(c)(i)" after "above" in line 4.

	(c)
	In
clause 15.2, change the heading to read "Automatic Termination", insert "(a)" after "Lessor" in line 3 and insert, at the end of clause 15.2, the words "or
(b) immediately upon any breach of the obligations in clause 12.5(c)(i) by LBV or by any Primary Obligor who has assumed or agreed to assume such obligations under any of the
Charter Documents." 

 
 

13    All Transaction Documents    
  

All
references in the Transaction Documents to: 

	(a)
	the
BOPS Assigned Account shall be amended to references to the BH Assigned Account;

	(b)
	the
BOPS Account Charge shall be amended to references to the BH Account Charge. 

14

  

 
 

Schedule 2
  
    Form of BH Account Charge    
  

THIS
AGREEMENT AND DEED OF PLEDGE OF ACCOUNT is made on 2002 BETWEEN: 

	1.
	BARCLAYS BANK PLC a company incorporated under the laws of England and Wales, acting through its office at 5 North Colonnade,
Canary Wharf, London E14 4BB, England (i) for itself; and (ii) as General Security Trustee for and on behalf of each of the Beneficiaries (such capitalised terms as defined in the DPP
defined below), hereinafter referred to as: the "Pledgee"; and

	2.
	BLUEWATER HOLDING B.V., a company incorporated under the laws of the Netherlands, with company number 34130587, whose registered office
is at Marsstraat 33, 2132 HR, Hoofddorp, The Netherlands, and includes its successors in title, hereinafter referred to as: the "Pledgor"; and

	3.
	ING BANK N.V., a company incorporated under the laws of the Netherlands, acting through its head office in Amsterdam, hereinafter
referred to as: the "Account Bank". 

 
 

WHEREAS:    
  

	(a)
	Barclays
Bank PLC, acting through its investment banking division, Barclays Capital, as arranger, Fortis Bank (Nederland) N.V., as arranger, ING Bank N.V., as arranger and various
other banks and financial institutions have agreed, according to their several obligations, to make available to the Borrowers a revolving credit facility of six hundred million United States dollars
(US$600,000,000) under the terms and conditions of and for the purposes as described in the revolving credit facility agreement dated on or about the date hereof and made between (amongst others)
certain of the parties hereto;

	(b)
	the
Pledgor has agreed to pledge and grant a disclosed first priority right of pledge (openbaar pandrecht eerste in rang) over all of
its Account Receivables (as defined below), such for the benefit of the Pledgee (the "Pledge"); and

	(c)
	for
the purpose of effecting the Pledge, the Pledgor and the Pledgee hereby agree to enter into this Agreement and Deed of Pledge of Account (the "Pledge
Agreement") in order to pledge the Account Receivables (as defined below) to the Pledgee, to secure payment, when due, of all existing and future (monetary) Dutch Secured
Obligations (as defined below). 

NOW, THEREFORE, THE PLEDGOR HEREBY AGREES WITH THE PLEDGEE AND THE PLEDGEE HEREBY AGREES WITH THE PLEDGOR as follows: 

 
 

1      Account Bank's waiver    
  

For
the purpose of this Pledge Agreement, the Account Bank as holder of the Account (as defined below) hereby waives towards the Pledgee (i) any and all of its rights of pledge under
Article 18 of its general banking conditions (Algemene Bankvoorwaarden) in respect of the Account and Account Receivables and (ii) any and
all rights of set-off under Article 19 of its general banking conditions in respect of the Account and Account Receivables, which waiver is accepted by the Pledgee and the Pledgor. 

15

 

 
 

2      Definitions and Interpretation    
  

	2.1
	In
this Pledge Agreement, the capitalised terms defined below, in addition to the capitalised terms defined in the recitals above, have the following meaning: 

"Account" means the account of the Pledgor with the Account Bank, being the following account: 

•    Account
name: "BH Assigned Account"; 

•    Account
number 02.00.16.107; 

"Account Receivables" means (i) all present and future rights, title, remedies and claims which the Pledgor has (from time to time) in connection
with the Account on or against the Account Bank and (ii) all moneys from time to time standing to the credit of, or from time to time credited to, the Account; 

"Dutch Secured Obligations" means (i) the Relevant Obligations (as defined in the Credit Agreement) of the Pledgor, and (ii) the
Obligation (as defined in the Covenant to Pay); 

"Dutch Security Period" means the period commencing on the date of signing of this Pledge Agreement and ending on the date upon which all Dutch Secured
Obligations shall have been unconditionally and irrevocably paid, repaid, satisfied, performed and discharged in full and this Pledge Agreement has been finally terminated and released pursuant to
Clause 17 hereof; 

"Pledgee", "Pledgor" and "to pledge" shall have the same
meaning as the Dutch words pandhouder, pandgever and verpanden respectively. 

	2.2
	Unless
otherwise defined herein, capitalised terms defined in schedule 2 to the trust deed and deed of proceeds and priorities dated on or about the date hereof and made
between amongst others the parties hereto (the "DPP") have the same meaning when used in this Pledge Agreement.

	2.3
	In
this Pledge Agreement:

	2.3.1
	references
to (or to any specified provision of) this Pledge Agreement or any other document shall be construed as references to this Pledge Agreement, that provision or that
document as in force for the time being and as amended, extended, novated, restated or replaced in accordance with the terms thereof with the consent of all relevant parties pursuant to (if
applicable) clause 16.3 of the DPP, including, without limitation, (i) any increase or reduction in any amount made available thereunder or any alteration of or addition to the purposes
for which any such amount, or increased or reduced amount, may be used, (ii) any facility provided in substitution of or in addition to the facilities originally made available thereunder,
(iii) any rescheduling of the indebtedness incurred thereunder, whether in isolation or in connection with any of the foregoing and (iv) any combination of any of the foregoing;

	2.3.2
	Clause
headings are inserted for convenience of reference only and are to be ignored in construing this Pledge Agreement and, unless otherwise specified, all references to Clauses
are to clauses of this Pledge Agreement;

	2.3.3
	unless
the context otherwise requires, words denoting the singular number shall include the plural and vice versa;

	2.3.4
	references
to any party include that party's successors and permitted transferees and assigns;

	2.3.5
	references
to statutory provisions shall be construed as references to those provisions as replaced, amended or re-enacted from time to time; 

16

 

	2.3.6
	references
to Account Receivables include, where the context so requires, references to all or any of the constituent parts thereof;

	2.3.7
	the
Pledgor and the Pledgee hereby agree that the Pledgor shall grant to the Pledgee the rights of pledge purported to be granted under or pursuant to this Pledge Agreement. 

	2.4
	This
Pledge Agreement shall be read together with the DPP but in the case of any conflict between any provision of this Pledge Agreement, on the one hand, and any provision of the
DPP, on the other hand, the relevant provision of the DPP shall prevail.

	2.5
	Wherever
in this Pledge Agreement the Pledgor covenants, undertakes or agrees with or to the Pledgee that it will not do any act or thing, the Pledgor may do such act or thing if it
obtains the prior written consent of the Pledgee thereto, provided always that (as the Pledgor hereby acknowledges and agrees) the Pledgee may give or withhold any such consent requested in its
absolute discretion and, in any event, shall act in accordance with the instructions of the Pledgee in relation to any such request for consent (upon and subject to the terms and conditions of the
DPP).

	2.6
	The
Pledgor acknowledges and agrees to the provisions of clause 7.18 of the DPP pursuant to which the Pledgee has appointed the Facility Agent as its agent for the purposes of
all and any requests, consents, instructions, directions, notices, demands or other communications which are to be given, made or issued by the Pledgee under or pursuant to this Pledge Agreement. 

 
 

3      [Intentionally omitted]    
  

 
  4      Pledge    
  

As
security for the payment and discharge of the Dutch Secured Obligations the Pledgor hereby grants to the Pledgee a disclosed first priority right of pledge and, to the extent it concerns future
Account Receivables, grants in advance (verpandt bij voorbaat) to the Pledgee a disclosed first priority right of pledge on the Account Receivables and
the Pledgee hereby accepts such pledge, which acceptance shall also serve as notice (mededeling) to the Account Bank. The Account Bank hereby
acknowledges such pledge. 

 
 

5      Representations and Warranties    
  

	5.1
	In
addition and without prejudice to the representations and warranties of the Pledgor, or made in respect of the Pledgor and/or the Account Receivables, herein or in the Transaction
Documents, the Pledgor represents and warrants to the Pledgee that:

	5.1.1
	the
Pledgor is the sole legal and beneficial owner of the Account Receivables, has full title thereto and is entitled to pledge the Account Receivables to the Pledgee;

	5.1.2
	the
security created by this Pledge Agreement constitutes a disclosed first priority right of pledge (openbaar eerste pandrecht) over
the Account Receivables and the Account Receivables are not subject to any prior or pari passu limited rights (in rem), including but not limited to
rights of pledge, rights of usufruct, or attachment (beslag), except pursuant to this Pledge Agreement; and

	5.1.3
	on
or prior to the date hereof no administrator (bewindvoerder), receiver (curator),
liquidator (vereffenaar) or similar official has been appointed with respect to the Pledgor, no resolution relating to such appointment has been adopted
and, to the best of Pledgor's knowledge, no petition or proceeding for such appointment is pending. 

17

 

	5.2
	The
representations and warranties in Clause 5.1 shall be deemed to be repeated by the Pledgor on the date of each Drawdown Notice, the date of each Advance and each Interest
Payment Date by reference to the facts and circumstances existing on each such date. 

 
 

6      Undertakings    
  

	6.1
	In
addition and without prejudice to those undertakings of the Pledgor, or made in respect of the Pledgor and/or the Account Receivables, herein or in any of the Transaction
Documents, the Pledgor undertakes to the Pledgee throughout the Dutch Security Period:

	6.1.1
	that
it shall forthwith, upon demand by the Pledgee and at the expense of the Pledgor, promptly execute and deliver all such agreements and documents, and do all such acts and
things, as may be necessary or as the Pledgee (acting reasonably) may require, in order (i) to create the security intended to be created hereby, to perfect and protect the security and the
rights of the Pledgee created hereby (or intended to be created hereby) and to obtain the full benefit of this Pledge Agreement, and (ii) to enable the Pledgee to exercise and enforce its
rights under this Pledge Agreement and to facilitate the realisation thereof;

	6.1.2
	to
use its best endeavours to warrant and to defend the rights, title and interest of the Pledgee to and in the Account Receivables against the claims and demands of all third
parties whomsoever;

	6.1.3
	to
promptly give notice to the Pledgee of any attachment or threatened attachment of which it is aware of the Account Receivables and of any other fact or circumstance which may in
any way materially affect, depreciate, jeopardise or otherwise materially prejudice the value of the Account Receivables and/or the rights of the Pledgee hereunder. 

	6.2
	In
addition and without prejudice to those undertakings of the Pledgor, or made in respect of the Pledgor and/or the Account Receivables, herein or in any of the Transaction
Documents, the Pledgor further undertakes to the Pledgee throughout the Dutch Security Period, without the prior written approval of the Pledgee, not to:

	6.2.1
	use,
collect or dispose of the Account Receivables or part thereof except as permitted under the terms of Clause 7;

	6.2.2
	do
or cause or permit to be done anything that may in any way materially affect, depreciate, jeopardise or otherwise materially prejudice the value of the Account Receivables and/or
the rights of the Pledgee hereunder. 

 
 

7      Use of Account    
  

	7.1
	The
Pledgor covenants to the Pledgee that, subject to the following provisions of this Clause 7, it will not make or permit any withdrawal or transfer from the Account. 

18

 
	7.2
	The
Pledgor shall from time to time withdraw from the Account (and for this purpose the Pledgor hereby authorises and directs the Facility Agent as agent of the Pledgee (pursuant to
clause 7.18 of the Deed of Proceeds and Priorities) to procure the withdrawal and transfer of) (i) by transfer to the Facility Agent Account, the amount or amounts then due and payable
by the Pledgor to the Facility Beneficiaries (or any of them) under and pursuant to the Credit Agreement and the other Facility Documents (or any of them) (or, if less, the balance of the Account
Receivables at that time in relation to the Account), (ii) by payment to the Hedging Providers entitled to receive the same, the amount of the Hedging Payments then due and payable under and
pursuant to the Assigned Hedging Agreements (or any of them) (or, if less, the balance of the Account Receivables at that time in relation to the Account) and (iii) by transfer to such account
of the Pledgor as the Pledgor may notify the Account Bank in writing, an amount equal to all Non-Restricted Earnings from time to time paid to the Pledgor (as economic transferee of BOPS
pursuant to the Economic Sale Agreement) under the Uisge Gorm Contract and deposited in the Account and identified as Non-Restricted Earnings at the time of deposit (or, if less, the
balance of the Account Receivables at that time in relation to the Account). 

Provided
however that, at all times after a Facility Event (or, following the end of the Facility Security Period, a Termination Event) has occurred, the foregoing provisions of this Clause 7.2
shall be subject in all respects to the provisions of Clauses 7.8 and 7.9. 

	7.3
	It
is agreed and acknowledged, for the avoidance of doubt, that wherever in Clause 7.2 reference is made to an amount or amounts due and payable to the Facility Beneficiaries,
this includes any amount which the Pledgor elects or is required to prepay pursuant to clause 2.8 of the Credit Agreement.

	7.4
	In
addition, the Pledgor covenants to the Pledgee that it will pay, or procure that there is paid, to the Account all amounts payable to or otherwise received by it in relation to, or
otherwise in connection with, its Assigned Property, other than (unless and until a Facility Event (or, following the end of the Facility Security Period, a Termination Event) has occurred) any
Non-Restricted Earnings.

	7.5
	With
effect from the end of the Facility Security Period, the covenants, restrictions and other provisions in and of Clauses 7.1, 7.2 and 7.4 shall apply only if and to the extent
that a Termination Event has occurred and is continuing.

	7.6
	The
Pledgor covenants to the Pledgee that it will not discharge, release or vary, grant any time, indulgence or concession in relation to, exchange, or compound with any person in
relation to, its rights, title, interest and benefit in, to, under and pursuant to the Account Receivables or any of them or any part thereof, and that it will not do or omit to do any thing which may
delay, prejudice, limit, discharge, reduce or affect the rights of the Beneficiaries (or any of them) to receive payment from the Account when the Beneficiaries (or any of them) are entitled to
receive such payment under and pursuant to the terms of the Credit Agreement and this Pledge Agreement.

	7.7
	The
Pledgor warrants and represents to the Pledgee that it is, and will, on each occasion that monies are deposited in the Account, be, the legal and beneficial owner of, and has, and
will on each such occasion have, good right and title, free of any Encumbrance (other than this Pledge Agreement), to the monies from time to time standing to the credit of the Account and each part
thereof. On and as of each day during the Dutch Security Period, the Pledgor shall be deemed to repeat the foregoing representation and warranty as if made with reference to the facts and
circumstances existing on each such day. 

19

 
	7.8
	During
the Facility Security Period, the Pledgee may, without prior notice to the Pledgor, instruct the Account Bank to apply all or any of the monies from time to time standing to
the credit of the Account (a) at any time after the occurrence of a Facility Event, but prior to the occurrence of an Enforcement Event, in payment to the Facility Agent for application in
accordance with clause 4.2 of the Credit Agreement, or (b) upon or at any time after the occurrence of an Enforcement Event, in payment to the Pledgee for application in accordance with
clause 11 of the DPP.

	7.9
	After
the end of the Facility Security Period, the Pledgee may, without notice to the Pledgor, instruct the Account Bank to apply all or any of the monies from time to time standing
to the credit of the Account (a) at any time after the occurrence of a Termination Event but prior to the issue by the relevant Equipment Lessor of a Termination Notice, in payment to the
Holding Account (as defined in the Lessor Holding Account Deed) (if the relevant Equipment Lessor is the Pledgor) and, in each other case, to that Equipment Lessor for application in accordance with
the application provision (if any) of the Head Lease to which it is a party, or (b) upon or at any time after the issue of a Termination Notice, in payment to the Pledgee for application in
accordance with clause 11 of the DPP. 

 
 

8      Security    
  

	8.1
	This
Pledge Agreement shall continue in full force and effect during the Dutch Security Period and, subject to Clause 2.4, shall be in addition to and not adversely affect, or
be adversely affected by, the Transaction Documents or any other document.

	8.2
	This
Pledge Agreement and the respective rights and obligations of the Pledgor and the Pledgee hereunder shall, to the extent possible under Dutch law, not be adversely affected by
any act or omission or circumstance, which but for this provision might adversely affect this Pledge Agreement or such rights and obligations or both, including, without any limitation:

	8.2.1
	any
extension of time or other indulgence granted to, or any acceptance of partial payment by, or any settlement with, any party to the Transaction Documents or any other person;

	8.2.2
	any
failure to proceed against, or to claim or enforce payment from, any party to the Transaction Documents or any other person;

	8.2.3
	any
amendment, extension, novation, restatement or replacement of the Transaction Documents or any other document or any change in the parties or any accession of a new party
thereto;

	8.2.4
	the
dissolution, bankruptcy, insolvency, liquidation or analogous circumstance of any party to the Transaction Documents or any other person;

	8.2.5
	any
change in the status, function, control or ownership of any party to the Transaction Documents or any other person; or

	8.2.6
	any
change of any Beneficiary. 

	8.3
	No
failure to exercise and no delay in exercising by the Pledgee of any right hereunder shall operate as a waiver thereof. The rights of the Pledgee hereunder are in addition to the
other rights which it may have under any provision of the Transaction Documents or under applicable law, may be exercised singly or concurrently and may be waived only in writing. 

20

 
	8.4
	To
the extent possible under Dutch law, the Pledgor waives (doet afstand van) in favour of the Pledgee throughout the Dutch Security
Period (i) its right of first requiring the Pledgee to proceed against or claim payment from any party to the Transaction Documents or any other person or enforce any other rights or security
before enforcing the security constituted hereby, and (ii) all other rights and defences conferred upon it by Dutch law, including, without limitation, the rights and defences contemplated by
Article 3:233 (reduction of value of Account Receivables and costs of maintenance thereof) and Articles 6:52
(suspension), 6:127 (set-off) and 6:150
(subrogation) of the Dutch Civil Code and the Pledgee accepts this waiver.

	8.5
	Throughout
the Dutch Security Period the Pledgor shall not, in connection with the Dutch Secured Obligations:

	8.5.1
	be
entitled to be indemnified by any party to the Transaction Documents or other person;

	8.5.2
	exercise
its rights of subrogation or recourse (regres) against any party to the Transaction Documents or any other person or any of
their respective assets;

	8.5.3
	receive,
claim or have the benefit of any payment, distribution or security from or on account of any party to the Transaction Documents or any other person or exercise its right of
set-off against any party to the Transaction Documents or any other person;

	8.5.4
	take
recourse (verhaal) or take any step to enforce any right against any party to the Transaction Documents or any other person or
their respective assets; and

	8.5.5
	claim
or vote in competition with the Pledgee in the bankruptcy, suspension of payments, liquidation or other analogous circumstance of any party to the Transaction Documents; 

in
each case, except in such manner and upon such terms as the Pledgee may require. Any payment, distribution or security received by the Pledgor contrary to the provisions of this Pledge Agreement
shall be received and held by the Pledgor as custodian (bewaarnemer) for the benefit of the Pledgee and shall, pending payment or transfer to the
Pledgee, be segregated from all other assets of the Pledgor and shall be forthwith paid over or transferred to the Pledgee. If notwithstanding the above the Pledgor exercises any right of
set-off or counter-claim in respect of any amount, it will forthwith pay an amount equal to such amount to the Pledgee. 

	8.6
	Where
any discharge (whether in respect of the obligations of any party to the Transaction Documents or any security for those obligations or otherwise) is made in whole or in part or
any arrangement is made on the faith of any payment, security or other disposition which is void or avoided or otherwise set aside or must be restored on insolvency, liquidation or otherwise without
limitation, the liability of the Pledgor under this Pledge Agreement shall continue as if such discharge or arrangement had not occurred.

	8.7
	A
certificate submitted by the Pledgee to the Pledgor as to the amount due from any party to the Transaction Documents in respect of the Dutch Secured Obligations or any part thereof
shall constitute prima facie evidence of the correctness of such amount (save for manifest error or fraud). 

21

 

 
 

9      Enforcement of Security    
  

	9.1
	Upon
the occurrence of (a) during the Facility Security Period, any Facility Event (whether or not the Facility Agent shall have issued any Acceleration Notice and whether or
not the Facility Security Trustee has made any demand under clause 3.1 of the Facility Guarantee, but subject always to clause 13.4 of the Credit Agreement), or (b) after the end
of the Facility Security Period, any Termination Event (whether or not the relevant Equipment Lessor shall have issued any Termination Notice), the Pledgee shall be entitled to exercise immediately
each and every right it has under this Pledge Agreement and under applicable law as Pledgee of the Account Receivables (but provided always that the Pledgee may only commence any such enforcement
action at a time at which a Facility Event or (as applicable) Termination Event is continuing), and in particular (but without limitation) shall be entitled:

	9.1.1
	to
collect the Account Receivables;

	9.1.2
	to
apply the monies so received in payment of the Dutch Secured Obligations or part thereof; and

	9.1.3
	to
act generally, subject to the relevant provisions of Dutch law, with the Account Receivables in such manner, at such times, for such consideration and on such terms and
conditions as the Pledgee may determine. 

	9.2
	The
Pledgor and the Pledgee agree that the Pledgee shall not have the obligations referred to in Sections 3:249 (notice of intended
sale) and 3:252 (notice of sale) of the Civil Code and the Pledgor shall not have the rights granted to pledgors pursuant to
Section 3:251 (alternative enforcement) of the Civil Code. 

 
 

10    Application    
  

	10.1
	To
the extent not contrary to mandatory provisions of Dutch law, all monies received by the Pledgee hereunder shall, subject to the payment of any claims having priority to this
Pledge Agreement, be applied by the Pledgee as follows:

	10.1.1
	(subject
to Clause 10.1.2) if those monies are received prior to the occurrence of an Enforcement Event and prior to the end of the Facility Security Period, those monies
shall be paid by the Pledgee to the Facility Agent for application in accordance with Clause 4.2 of the Credit Agreement; or

	10.1.2
	if
those monies are received by the Pledgee upon or after the occurrence of an Enforcement Event or after the end of the Facility Security Period, those monies shall be paid by the
Pledgee to the Security Trustee Account and shall be applied in accordance with Clause 11 of the DPP, unless (i) the Facility Security Period has ended, and (ii) a Termination
Event has occurred which is continuing but no Termination Notice has been issued, in which case Clause 10.2 shall instead apply. 

	10.2
	Where
this Clause 10.2 applies in accordance with Clause 10.1.2, the relevant monies shall be paid:

	10.2.1
	to
the Holding Account (as defined in the Lessor Holding Account Deed) if the Equipment Lessor in relation to the Equipment to which those monies relates is the Pledgor; or

	10.2.2
	in
each other case, to the Equipment Lessor who is the lessor of the Equipment and entitled to the benefit of the monies in accordance with the provisions of the Head Lease to
which that Equipment Lessor is a party for application pursuant to its terms. 

22

 

 
 

11    Power of attorney    
  

	11.1
	The
Pledgor, for the benefit of the Pledgee (in het belang van de gevolmachtigde), hereby irrevocably appoints the Pledgee with full
right of substitution to be its attorney-in-fact and on its behalf and in its name or otherwise (as the attorney-in-fact may decide) to sign, execute,
seal, deliver, acknowledge, file, register and perfect any and all such agreements (including any agreements to which the Pledgee itself is a party
(Selbsteintritt)) and other documents and to do any and all such acts and things as the Pledgor itself could (or ought to) do in relation to the Account
Receivables or in relation to any matters dealt with in this Pledge Agreement and which in the opinion of the Pledgee, acting reasonably, may be necessary or desirable to give full effect to the
purposes of this Pledge Agreement and the Pledgor will ratify and confirm whatever the attorney-in-fact or any substitute shall do or cause to be done in pursuance of the
powers conferred to it hereby. The Pledgee declares its interest in this mandate, accepts the same and declares that this mandate forms part of its security.

	11.2
	The
Pledgee shall not have any obligation whatsoever to exercise any of the powers conferred upon it by Clause 11.1. No action taken by or omitted to be taken by the
attorney-in-fact or any substitute in good faith shall give rise to any defence, counterclaim or set-off against the Pledgee or otherwise adversely affect any of
the Dutch Secured Obligations.

	11.3
	The
Pledgee will not exercise the powers confined upon it by Clause 11.1 unless and until:

	11.3.1
	a
Facility Event has occurred (and subject always to clause 13.4 of the Credit Agreement); or

	11.3.2
	the
Pledgor has failed to comply with any of its obligations under this Pledge Agreement within the agreed period of time. 

 
 

12    Risks and Charges    
  

	12.1
	The
Pledgee and any attorney-in-fact, agent or other person appointed by the Pledgee in connection with this Pledge Agreement and their respective officers
and employees (each an "Indemnified Party") shall be indemnified by the Pledgor in respect of all reasonable and properly documented expenses, claims of
third parties and liabilities, whether in contract, tort or otherwise, and which are properly incurred by, or made against, any of them in respect of:

	12.1.1
	anything
done or omitted in the exercise or purported exercise of the rights contained in this Pledge Agreement; or

	12.1.2
	any
breach by the Pledgor of any of its obligations under this Pledge Agreement; 

except
in the case of wilful misconduct (opzet) or gross negligence (grove schuld) on the part of an
Indemnified Party. 

	12.2
	Nothing
in this Pledge Agreement shall relieve the Pledgor from the performance of any obligation to be performed by it with respect to the Account Receivables or part thereof or
impose any liability on the Pledgee for any act, omission, default, any breach of any representation, warranty or undertaking contained in this Pledge Agreement, or losses or liabilities incurred by
the Pledgor. The Pledgee shall not be required in any manner to perform or fulfil any obligation of the Pledgor in respect of the Account Receivables or to make any payments or to make any inquiry as
to the nature or sufficiency of the payments received by it or to present or file any claim or notice or take any other action whatsoever with respect to the Account Receivables or any part thereof. 

23

 
	12.3
	All
payments by the Pledgor under this Pledge Agreement to the Pledgee shall be made without any set-off, counterclaim or other deduction and free and clear of, and
without deduction for or on account of, any taxes or any imposts.

	12.4
	Any
sums payable to any Indemnified Party or the Pledgee by the Pledgor, as is contemplated by Clause 12.1, shall be payable by the Pledgor on demand together with interest at
the Default Rate from the date of such disbursement by the Pledgee or such Indemnified Party until the same are repaid in full and, pending such repayment, shall constitute part of the Dutch Secured
Obligations.

	12.5
	All
monies received by the Pledgee under this Pledge Agreement (including the proceeds of any conversion of currency) may, in the sole discretion of the Pledgee and to the extent
possible under applicable law, be credited to any special bank account and may be held in such account as security for the Dutch Secured Obligations for the duration of the Dutch Security Period (with
interest accruing thereon at such rate, if any, as the Pledgee may deem fit) pending their application from time to time in payment of the Dutch Secured Obligations or any part thereof. 

 
 

13    Invalidity    
  

Should
any provision of this Pledge Agreement be or become invalid, void or unenforceable, all remaining provisions and terms hereof shall remain in full force and effect and shall in no way be
invalidated, impaired or affected thereby. The parties hereto agree that they will negotiate in good faith and will replace the invalid, void or unenforceable provision with a valid and enforceable
provision that reflects as near as possible the intention of the parties as referred in the provision thus replaced. 

 
 

14    Rescission    
  

To
the fullest extent permitted by Dutch law, the Pledgor waives its rights to rescind (ontbinden) this Pledge Agreement or to annul
(vernietigen) the legal acts (rechtshandelingen) performed under or pursuant to this Pledge Agreement. 

 
 

15    Assignment and Transfer    
  

The
Pledgor hereby agrees to any accession of a new party and any change to the parties to the Transaction Documents or any transfer or assignment, in each case, as permitted in the Transaction
Documents and agrees that, notwithstanding any such accession, change, transfer or assignment or novation, this Pledge Agreement shall, to the fullest extent possible under Dutch law, remain in full
force and shall enure to the benefit of the Pledgee or any assignee, transferee or other successor in title of the Pledgee or both (as the case may be) in the same manner as if such assignee,
transferee or other successor in title had been named in this Pledge Agreement as a party instead of, or in addition to, the Pledgee. 

 
 

16    Notices    
  

Clause 24
of the DPP shall apply mutatis mutandis to every notice, request, demand or other communication under this Pledge Agreement. 

24

 

 
 

17    Termination and Release    
  

Subject
and without prejudice to Clause 8.6, once the Dutch Secured Obligations have been unconditionally and irrevocably paid in full and the Transaction Documents shall have been terminated,
the Pledgee will, following a written request therefore from and at the expense of the Pledgor, certify in writing that this Pledge Agreement is terminated and the Account Receivables are released
from this Pledge Agreement and do all such further acts and things as the Pledgor may reasonably request. 

 
 

18    Applicable Law and Jurisdiction    
  

	18.1
	This
Pledge Agreement is governed by and shall be construed in accordance with Dutch law.

	18.2
	The
Pledgor, the Pledgee and the Account Bank hereby irrevocably submit to the jurisdiction of the competent court in Amsterdam, the Netherlands in connection with any disputes
arising under or pursuant to this Pledge Agreement.

	18.3
	The
submission by the Pledgor and the Pledgee to such jurisdiction shall not preclude the Pledgor or the Pledgee from taking proceedings in any appropriate court of any other
jurisdiction, whether concurrently or not. 

 
 

19    Counterparts    
  

This
Pledge Agreement may be executed in separate counterparts and by each party separately on a separate counterpart, and each such counterpart, when so executed, shall be an original. Such
counterparts shall together constitute one and the same instrument. 

IN WITNESS WHEREOF the parties to this Pledge Agreement have (caused this Pledge Agreement to be) duly executed and delivered on the date first written
above. 

[Remainder intentionally left blank] 

25

  

	Barclays Bank PLC	 	 
	

By:	

	
 	

 
	

Name:	
 	

 
	

Title:	
 	

 
	

    	

 	
 	

 
	

    	

 	
 	

 
	
Bluewater Holding B.V.	
 	

 
	

By:	

	
 	

 
	

Name:	
 	

 
	

Title:	
 	

 
	

    	

 	
 	

 
	

    	

 	
 	

 
	
ING Bank N.V.	
 	

 
	

By:	

	
 	

 
	

Name:	
 	

 
	

Title:	
 	

 

26

  

 
 

Schedule 3
  
    Reduction Schedule    
  

	Repayment Date

(Quarter)
	 	Reduction (from $600,000,000)

$000,000

	15 March 2002	 	—
	15 June 2002	 	—
	15 September 2002	 	20
	15 December 2002	 	20
	15 March 2003	 	20
	15 June 2003	 	20
	15 September 2003	 	20
	15 December 2003	 	20
	15 March 2004	 	20
	15 June 2004	 	20
	15 September 2004	 	20
	15 December 2004	 	20
	15 March 2005	 	20
	15 June 2005	 	20
	15 September 2005	 	20
	15 December 2005	 	20
	15 March 2006	 	20
	15 June 2006	 	20
	15 September 2006	 	20
	15 December 2006	 	20
	15 March 2007	 	20
	15 June 2007	 	20
	15 September 2007	 	20
	15 December 2007	 	20
	15 March 2008	 	20
	15 June 2008	 	20
	15 September 2008	 	20
	15 December 2008	 	20
	15 March 2009	 	20
	15 June 2009	 	20
	15 September 2009	 	20
	15 December 2009	 	20

27

  

 
 

Schedule 4
  
    BH Corporate Documents    
  

MANAGING DIRECTOR'S CERTIFICATE  

Bluewater Holding B.V.
  (the "Company") 

I,
Hugo Jan Heerema, the Managing Director of the Company, hereby certify that: 

	1
	Attached
hereto, marked "A", is a true, correct and complete copy of the Extract from the Chamber of Commerce for Amsterdam dated
[date] 2002 concerning the Company and we hereby confirm that the copy of the Articles of Association delivered to Norton Rose
[by fax message] on [date] 2002 are a true, correct and
complete copy, which have not been amended, modified or revoked, and which are in full force and effect as at the date hereof.

	2
	Attached
hereto, marked "B", is a true, correct and complete copy of a resolution, duly passed in writing by the Board of Managing Directors of the Company duly convened and held on
[date] 2002, which resolution has not been amended, modified or revoked, and is in full force and effect as at the date hereof.

	3
	Attached
hereto, marked "C", is a true, correct and complete copy of the power of attorney authorised by the Board of Managing Directors of the Company, and issued pursuant to, the
resolution referred to in paragraph 2 above, and such power of attorney has not been amended, modified or revoked and is in full force and effect as at the date hereof.

	4
	The
following is a true and complete list of the Managing Directors of the Company at the date hereof, and the true signature of such Managing Director: 

	 
	Name
 
	 	Address
	 	Signature

	 	Hugo Jan Heerema	 	Hemelakkers 75

B-2930 Brasschaat

Belgium	 	 

	9
	The
authorised share capital of the Company is divided into 500,000 shares of EUR 1 each. As at the date hereof, 100,000 shares have been issued and are held as follows: 

	 
	Shareholder
 
	 	Number of Shares

	 	Bluewater Offshore Production Systems Limited	 	100,000

	6
	Except
for the foreign exchange control exemption and business licence obtained by the Company, no consents, authorisations, licences or approvals of, or registrations or declarations
with, any Government Entity are required by the Company to authorise, or otherwise in connection with, the execution, delivery, entry into, validity, enforceability, priority or admissibility in
evidence of, or the performance by the Company of its obligations under the BH Account Charge.

	7
	Each
of the representations and warranties made or deemed to be made by the Company under the BH Account Charge are true and correct with respect to the facts and circumstances
existing at the date hereof.

	8
	No
Default has occurred and is continuing. 

28

 

As
far as I am aware, no actions, suits, investigations, litigation or proceedings are current or pending or threatened against or affecting the Company or any of their respective assets before any
court, arbitrator or governmental agency that purport to or may affect the legality, validity or enforceability of the BH Account Charge. 

 
 

Definitions    
  

Words
and expressions defined (whether expressly or by reference to another document) in the Deed of Amendment, Release and Consent in relation to a US$600 million revolving credit facility
agreement dated on or about the date hereof shall bear the same respective meanings when used in this Certificate. 

	SIGNED:	 	
	 	 
	 	 	Hugo Jan Heerema	 	 
	
Dated:	
 	

	
 	

 

29

  

 
 

BLUEWATER HOLDING B.V. (the "Company")    
  

MINUTES of meeting of the Board of the Managing Director held at Hoofoddorp, The Netherlands at
[time] on [date] 2002 

Present:
H.J. Heerema Managing Director and Chairman of the Meeting 

	1
	The
Chairman declared that a quorum was present. The Chairman kept the minutes of the meeting.

	2
	The
Chairman explained that the purpose of the meeting was to consider and if thought fit to approve the entry by the Company into an account charge (the "BH
Account Charge") made between (i) Barclays Bank PLC as Pledgee, (ii) the Company as Pledgor and (iii) ING Bank N.V. as Account Bank.

	3
	The
Managing Director considered in detail the contents of the BH Account Charge.

	4
	After
due consideration, the Managing Director decided that the entry by the Company into the BH Account Charge would be to the Company's commercial benefit.

	5
	After
due consideration, the Director RESOLVED THAT:

	(a)
	The
Company enter into, execute (under hand, under seal and/or as a deed) and deliver the BH Account Charge and all other documents necessary or desirable to complete the transactions
contemplated (together, the "Documents") and that the Managing Director be and is hereby authorised to execute on behalf of the Company the Documents on
such terms as the Managing Director may in his absolute discretion approve, and execution and delivery by the Managing Director of any of the Documents shall be conclusive evidence of his authority to
do so and of the approval of the terms thereof by the Managing Director.

	(b)
	The
Managing Director be and is hereby authorised to agree the form, terms and conditions of, and to execute (under hand, under seal and/or as a deed), deliver and register on behalf
of the Company any and all documents, letters, undertakings, certificates, instruments, applications or declarations ("Ancillary Documents") as he may,
in his absolute and unfettered discretion, deem necessary or desirable for the completion of the arrangements set out above and the execution, delivery and/or registration by the Managing Director of
any of the foregoing shall be conclusive evidence of his authority to do so and of the approval of the terms thereof by the Managing Director.

	(c)
	The
Company grant a power of attorney (the "Power of Attorney") to [            ] appointing each of them as
its true and lawful attorney to act jointly and severally on behalf of the Company for the purpose of executing, delivering and/or registering on behalf of the Company the Documents and the Ancillary
Documents on such terms as the attorney(s) executing, delivering and/or registering the same may in his/her or their absolute discretion approve, it being acknowledged that the execution, delivery
and/or registration of the Documents and the Ancillary Documents or any of them by such attorney(s) shall be conclusive evidence binding upon the Company of his/her or their authority to do so and of
the approval of the terms thereof by such attorney(s), and for the purpose of agreeing, executing, delivering, registering and doing any and all documents, acts or things as may in the absolute
discretion of such attorney(s) be deemed necessary or desirable in connection with the Documents, the Ancillary Documents or the arrangements contemplated thereby. 

	6
	The
Power of Attorney be executed by the Managing Director of the Company. 

There
being no further business, the Meeting closed. 

 
 

H.J. Heerema    
  

30

  

 
 

POWER OF ATTORNEY    
  

of

Bluewater Holding B.V.
  (the "Company") 

WHEREAS the Company proposes to enter into an account charge between Barclays Bank PLC, the Company and ING Bank N.V. (the "BH
Account Charge") dated on or about the date hereof. 

By
this power of attorney, the Company, being a company duly incorporated under the laws of The Netherlands and with its registered office at Marsstraat 33, 2132 HR, Hoofddorp, The Netherlands HEREBY
APPOINTS [                        ] (the "Attorneys") to be the true and lawful
attorneys of the Company, jointly and severally, for the
following purposes: 

	1
	to
negotiate, agree the terms of, execute (under hand, under seal and/or as a deed), deliver and register on behalf of the Company the BH Account Charge and all other documents
necessary or desirable to complete the transactions thereby contemplated (together the "Documents") on such terms and conditions as may in the absolute
discretion of the Attorneys or any one or more of them seem necessary or desirable;

	2
	to
negotiate, agree the form, terms and conditions of, execute (under hand, under seal or as a deed), deliver and register on behalf of the Company any and all documents, letters,
undertakings, certificates, instruments, applications or declarations ("Ancillary Documents") as the Attorneys or any one or more of them may in his/her
or their absolute and unfettered discretion deem necessary or desirable in relation thereto;

	3
	to
negotiate, agree the terms of, execute (under hand, under seal and/or as a deed), deliver and register on behalf of the Company any and all documents, and to do any and all acts or
things as may, in the absolute discretion of the Attorneys or any one or more of them, seem necessary or desirable in connection with the Documents, the Ancillary Documents or the arrangements
contemplated thereby;

	4
	to
do all such other acts and things as the Attorneys or any one or more of them may in his/her or their absolute and unfettered discretion deem appropriate, requisite or proper in
giving full effect to this Power of Attorney, according to the laws and usages of any country whose laws have to be complied with in the carrying out of the mandate conferred by this Power of
Attorney; and

	6
	to
appoint a substitute to carry out all or any of the objects herein authorised and to revoke any such appointment. 

The
Company hereby ratifies and confirms and agrees to ratify and confirm whatsoever any Attorney or the substitute of such Attorney shall do or purport to do by reason of these presents including
whatsoever shall be done between the time of revocation by any means of this Power of Attorney and such revocation becoming known to the said Attorney or, as the case may be, its substitute and hold
harmless and indemnify the Attorney or its substitute in respect of the same. 

This
Power of Attorney is governed by the laws of The Netherlands. 

This
Power of Attorney shall be irrevocable until and including [date]. 

31

 

IN WITNESS whereof this Power of Attorney has been executed in accordance with the laws of The Netherlands this
[date] 2002. 

	SIGNED by Hugo Jan Heerema	 	)	 	 	 	 
	for and on behalf of	 	)	 	 	 	 
	BLUEWATER HOLDING B.V.	 	)	 	.............................................	 	 
	in the presence of:	 	)	 	Hugo Jan Heerema	 	 

32

  

 
 

Schedule 5
  
    Lessor Notice    
  

[on letterhead of the Lessor]

	 
	 
	 	 
	 	 

	To:	Norton Rose

By fax to: +33 1 53 89 56 56

For the urgent attention of:	 	Alison Baxter/Jill Whalley	 	 
	

 	

 	
 	

 	
 	

Date [                        ] 2002

Dear
Sirs 

 
 

Escrow Deed dated [                        ] 2002 (the "Escrow Deed")—Lessor Notice    

	1
	We
refer to the Escrow Deed.

	2
	Pursuant
to clauses 6.2 and 6.3 of the Escrow Deed, we hereby confirm that the conditions precedent detailed in schedule 7 to the Escrow Deed have all been
satisfied and/or waived. 

Words
and expressions defined in the Escrow Deed bear the same respective meanings herein. 

Yours
faithfully 

For
and on behalf of
 HILL SAMUEL LEASING (NO. 4) LIMITED

	 
	 

	

	

By:	

	

Title:	

33

 
 
 

Schedule 6
  
    Facility Agent Notice    
  

[on letterhead of the Facility Agent]

	 
	 
	 	 
	 	 

	To:	Norton Rose

By fax to: +33 1 53 89 56 56

For the urgent attention of:	 	Alison Baxter/Jill Whalley	 	 
	

 	

 	
 	

 	
 	

Date [                        ] 2002

Dear
Sirs 

 
 

Escrow Deed dated [                        ] 2002 (the "Escrow Deed")—Lessor Notice    

	1
	We
refer to the Escrow Deed.

	2
	Pursuant
to clauses 6.2 and 6.3 of the Escrow Deed, we hereby confirm that the conditions precedent detailed in schedule 7 to the Escrow Deed have all been
satisfied and/or waived. 

Words
and expressions defined in the Escrow Deed bear the same respective meanings herein. 

Yours
faithfully 

For
and on behalf of
 ING BANK N.V.

	 
	 

	

	

By:	

	

Title:	

34

 
 
 

Schedule 7
  
    Conditions precedent    
  

Each
of the following items is to be in form and content acceptable to the Lessor and the Facility Agent respectively. 

1          BH Corporate Documents  

            A copy of the BH Corporate Documents. 

2          Escrow Deed and BH Account Charge  

            An original of this Deed duly executed by each party hereto, together with confirmation from the Escrow Agent that it is holding an original or fax copy of the
BH Account Charge pursuant to the terms of this Deed. 

3          Netherlands opinion  

            An opinion of [                        ],
special legal advisers in The Netherlands to the Beneficiaries. 

35

   EXECUTION PAGE  

	EXECUTED as a DEED

and DELIVERED

for and on behalf of
 RANBERGER HOLDING N.V.

by

its duly authorised attorney-in-fact	)

)

) /s/ REMCO BOKMA

) /s/ MRS PADILLA

)

)
	
EXECUTED as a DEED

and DELIVERED

for and on behalf of
 LULUDIA ASSET FINANCE B.V.

by

its duly authorised attorney-in-fact

in the presence of:	

)

)

) /s/ GERRIT KIERS

) /s/ HENK HEIJS

)

)

) /s/ MOHAMMED ZEMOURI
	
EXECUTED as a DEED

and DELIVERED

for and on behalf of
 REFUGIO B.V.

by

its duly authorised attorney-in-fact

in the presence of:	

)

)

) /s/ GERRIT KIERS

) /s/ HENK HEIJS

)

)

) /s/ MOHAMMED ZEMOURI
	
EXECUTED as a DEED

and DELIVERED

for and on behalf of
 BLUEWATER OFFSHORE PRODUCTION SYSTEMS

LIMITED

by

its duly authorised attorney-in-fact	

)

)

)

) /s/ JOHN COLLISON

) /s/ ALEX DE BRUIJN

)

)
	
EXECUTED as a DEED

and DELIVERED

for and on behalf of
 BLUEWATER ENERGY SERVICES B.V.

by

its duly authorised attorney-in-fact	

)

)

) /s/ HUGO JAN HEEREMA

) /s/ ALEX DE BRUIJN

)

)
	

THE COMMON SEAL OF
 HILL SAMUEL LEASING

(NO.4) LIMITED

Was affixed

In the presence of	

)

)

)

) /s/ L.J. HIGGS

) /s/ P.B. MILES
	
 	

 

36

 

	
EXECUTED as a DEED and DELIVERED

for and on behalf of
 ALICE EXPLORATION FOUNDATION

By Intertrust (Curaçao) N.V. and Mr G.E. Elias

its duly authorised attorney-in-fact

in the presence of: J.E. Manuel-v.d. Staal, Berg Arrarat 1, Curaçao	

)

)

) /s/ GREGORY ELIAS

) /s/ GREGORY ELIAS

)

) /s/ J.E. MANUEL
	
EXECUTED as a DEED and DELIVERED

for and on behalf of
 ARIEL EXPLORATION FOUNDATION

By Intertrust (Curaçao) N.V. and Mr G.E. Elias

its duly authorised attorney-in-fact

in the presence of: J.E. Manuel-v.d. Staal, Berg Arrarat 1, Curaçao	

)

)

) /s/ GREGORY ELIAS

) /s/ GREGORY ELIAS

)

) /s/ J.E. MANUEL
	
EXECUTED as a DEED and DELIVERED

for and on behalf of
 ASTERIX EXPLORATION FOUNDATION

By Intertrust (Curaçao) N.V. and Mr G.E. Elias

its duly authorised attorney-in-fact

in the presence of: J.E. Manuel-v.d. Staal, Berg Arrarat 1, Curaçao	

)

)

) /s/ GREGORY ELIAS

) /s/ GREGORY ELIAS

)

) /s/ J.E. MANUEL
	
EXECUTED as a DEED

and DELIVERED

for and on behalf of
 ING BANK N.V.

by

its duly authorised attorney-in-fact	

)

)

) /s/ M KLEMME

) /s/ BRAM WIJNEN

)

)
	
EXECUTED as a DEED

and DELIVERED

for and on behalf of
 BARCLAYS BANK PLC

by

its duly authorised attorney-in-fact	

)

)

) /s/ JOHN HOGARTH

)

)

)
	
EXECUTED as a DEED

and DELIVERED

for and on behalf of
 NORTON ROSE

by	

)

)

) /s/ NORTON ROSE

)

)

37<PAGE>

                                                                   EXHIBIT 4.1

                                     FORM OF

                          SUPPLEMENTAL INDENTURE NO. 3

                                 BY AND BETWEEN

                         SENIOR HOUSING PROPERTIES TRUST

                                       AND

                         U.S. BANK NATIONAL ASSOCIATION

                              AS OF APRIL 21, 2003

           SUPPLEMENTAL TO THE INDENTURE DATED AS OF DECEMBER 20, 2001

                      ------------------------------------

                         SENIOR HOUSING PROPERTIES TRUST

                          7 7/8 % SENIOR NOTES DUE 2015

<PAGE>

         This SUPPLEMENTAL INDENTURE NO. 3 (this "SUPPLEMENTAL INDENTURE") made
and entered into as of April 21, 2003 between SENIOR HOUSING PROPERTIES TRUST, a
Maryland real estate investment trust (the "COMPANY"), and U.S. BANK NATIONAL
ASSOCIATION, a national banking association (and successor to State Street Bank
and Trust Company ("STATE STREET") in its capacity as Trustee), as Trustee (the
"TRUSTEE"),

                                WITNESSETH THAT:

         WHEREAS, the Company and State Street have executed and delivered an
Indenture, dated as of December 20, 2001 (as previously and from time to time
hereafter amended, supplemented or otherwise modified, the "BASE INDENTURE" and,
together with this Supplemental Indenture, as amended, supplemented or otherwise
modified from time to time, the "INDENTURE") to provide for the future issuance
of the Company's senior debt securities (the "SECURITIES") to be issued from
time to time in one or more series; and

         WHEREAS, U.S. Bank National Association has acquired and succeeded to
substantially all of the corporate trust business of State Street, and, being
eligible to serve as trustee under the Indenture, has succeeded to State Street
as Trustee under the Indenture; and

         WHEREAS, pursuant to the terms of the Base Indenture, the Company
desires to provide for the establishment of a series of its Securities, to be
known as its 7 7/8% Senior Notes due 2015, the form and substance of such
Securities and the terms, provisions and conditions thereof to be set forth as
provided in the Indenture;

         NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

                                    ARTICLE 1

                                  DEFINED TERMS

         SECTION 1.1 The following definitions supplement, and, to the extent
inconsistent with, replace the definitions in Section 101 of the Base Indenture:

         "ACQUIRED DEBT" means Debt of a Person (i) existing at the time such
Person becomes a Subsidiary or (ii) assumed in connection with the acquisition
of assets from such Person, in each case, other than Debt incurred in connection
with, or in contemplation of, such Person becoming a Subsidiary or such
acquisition. Acquired Debt shall be deemed to be incurred on the date of the
related acquisition of assets from any Person or the date the acquired Person
becomes a Subsidiary.

         "ADJUSTED TOTAL ASSETS" is defined in clause (i) of Section 3.1(a).

         "ANNUAL DEBT SERVICE" as of any date means the maximum amount which is
expensed in any 12-month period for interest on Debt of the Company and its
Subsidiaries excluding amortization of debt discount and deferred financing
costs.

<PAGE>

         "BUSINESS DAY" means any day other than a Saturday or Sunday or a day
on which banking institutions in the City of New York or in the city in which
the corporate trust office of the Trustee are required or authorized to close.

         "CAPITAL STOCK" means, with respect to any Person, any capital stock
(including preferred stock), shares, interests, participation or other ownership
interests (however designated) of such Person and any rights (other than debt
securities convertible into or exchangeable for capital stock), warrants or
options to purchase any thereof.

         "CASH EQUIVALENTS" means:

              (i) demand deposits, certificates of deposit or repurchase
         agreements issued by or maintained with banks or other financial
         institutions;

              (ii) marketable securities issued or directly and fully guaranteed
         as to timely payment by the United States of America or any agency or
         instrumentality thereof, or

              (iii) any commercial paper or other obligation rated, at time of
         purchase, at least "P-2" (or its equivalent) by Moody's or at least
         "A-2" (or its equivalent) by Standard & Poor's.

         "CHANGE OF CONTROL" means such time as any "person" or "group" (as such
terms are defined in Sections 13(d) and 14(d)(2) of the Exchange Act), other
than an Excluded Person, becomes the "beneficial owner" (as defined in Rule
13d-3 under the Exchange Act) of more than 50% of the total voting power of the
Voting Stock of the Company on a fully diluted basis. For such purpose,
"EXCLUDED PERSON" means (i) RMR, HRPT Properties Trust, a Maryland real estate
investment trust, Hospitality Properties Trust, a Maryland real estate
investment trust, Five Star Quality Care, Inc., a Maryland corporation, or any
other entity for which financing, investment and operating oversight for
substantially all of such entity's activities is provided by RMR, or any
successor to or affiliate of such persons, and (ii) any person or group
acquiring shares issued by the Company in connection with a merger or
acquisition, if the person or group has agreed with the Company to distribute
such shares to the holders of its or their securities within a period of not
longer than one year from the date of such agreement (the "Distribution Period")
and, giving pro forma effect to such distribution as of the date on which the
agreement for the merger or acquisition was entered into (and giving effect to
the transactions contemplated by that agreement), no Change of Control would
have occurred; PROVIDED that if such distribution does not occur by the end of
the Distribution Period, a Change in Control shall be deemed to have occurred at
the end of the Distribution Period.

         "CHANGE OF CONTROL OFFER" is defined in Section 4.1 of this
Supplemental Indenture.

         "CHANGE OF CONTROL PAYMENT" is defined in Section 4.1 of this
Supplemental Indenture.

         "CHANGE OF CONTROL PAYMENT DATE" is defined in Section 4.1 of this
Supplemental Indenture.

                                      -2-

<PAGE>

         "CONSOLIDATED INCOME AVAILABLE FOR DEBT SERVICE" for any period means
Earnings from Operations of the Company and its Subsidiaries plus amounts which
have been deducted, and minus amounts which have been added, for the following
(without duplication): (i) interest or distributions on Debt of the Company and
its Subsidiaries, (ii) provision for taxes of the Company and its Subsidiaries
based on income, (iii) amortization of debt discount and deferred financing
costs, (iv) provisions for gains and losses on properties and property
depreciation and amortization, (v) the effect of any noncash charge resulting
from a change in accounting principles in determining Earnings from Operations
for such period and (vi) amortization of deferred charges.

         "DEBT" of the Company or any Subsidiary means, without duplication, any
indebtedness of the Company or any Subsidiary, whether or not contingent, in
respect of (i) borrowed money or evidenced by bonds, notes, debentures or
similar instruments, (ii) indebtedness for borrowed money secured by any
Encumbrance existing on property owned by the Company or any Subsidiary, to the
extent of the lesser of (x) the amount of indebtedness so secured or (y) the
fair market value of the property subject to such Encumbrance, (iii) the
reimbursement obligations, contingent or otherwise, in connection with any
letters of credit actually issued (other than letters of credit issued to
provide credit enhancement or support with respect to other indebtedness of the
Company or any Subsidiary otherwise reflected as Debt hereunder) or amounts
representing the balance deferred and unpaid of the purchase price of any
property or services, except any such balance that constitutes an accrued
expense, trade payable, conditional sale obligations or obligations under any
title retention agreement, (iv) the principal amount of all obligations of the
Company or any Subsidiary with respect to redemption, repayment or other
repurchase of any Disqualified Stock, or (v) any lease of property by the
Company or any Subsidiary as lessee which is reflected on the Company's
consolidated balance sheet as a capitalized lease in accordance with GAAP, to
the extent, in the case of items of indebtedness under (i) through (iii) above,
that any such items (other than letters of credit) would appear as a liability
on the Company's consolidated balance sheet in accordance with GAAP. Debt also
includes, to the extent not otherwise included, any obligation by the Company or
any Subsidiary to be liable for, or to pay, as obligor, guarantor or otherwise
(other than for purposes of collection in the ordinary course of business), Debt
of another Person (other than the Company or any Subsidiary); it being
understood that Debt shall be deemed to be incurred by the Company or any
Subsidiary whenever the Company or such Subsidiary shall create, assume,
guarantee or otherwise become liable in respect thereof.

         "DISQUALIFIED STOCK" means, with respect to any Person, any Capital
Stock of such Person which by the terms of such Capital Stock (or by the terms
of any security into which it is convertible or for which it is exchangeable or
exercisable), upon the happening of any event or otherwise (other than pursuant
to a change of control provision not materially more favorable to the holder
thereof than that set forth in Section 4.1 of this Supplemental Indenture), (i)
matures or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise (other than Capital Stock which is redeemable solely in exchange for
Capital Stock which is not Disqualified Stock or for Subordinated Debt), (ii) is
convertible into or exchangeable or exercisable for Debt, other than
Subordinated Debt or Disqualified Stock, or (iii) is redeemable at the option of
the holder thereof, in whole or in part (other than Capital Stock which is
redeemable solely in exchange for Capital Stock which is not Disqualified Stock
or for Subordinated Debt); in each case on or prior to the Stated Maturity of
the principal of the Notes.

                                      -3-

<PAGE>

         "EARNINGS FROM OPERATIONS" for any period means net earnings excluding
gains and losses on sales of investments, gains or losses on early
extinguishment of debt, extraordinary items, distributions on equity securities
and property valuation losses, as reflected in the financial statements of the
Company and its Subsidiaries for such period, determined on a consolidated basis
in accordance with GAAP.

         "ENCUMBRANCE" means any mortgage, lien, charge, pledge, security
interest or other encumbrance of any kind.

         "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

         "EXCLUDED REFUNDING" means, at any time, any voluntary or optional
principal payment, or voluntary or optional redemption, repurchase, defeasance,
or other acquisition or retirement for value, of Subordinated Debt of the
Company or any Subsidiary in an amount not exceeding the aggregate Net Cash
Proceeds received by the Company and its Subsidiaries from the substantially
concurrent sale of Qualified Subordinated Debt, to the extent such proceeds have
not theretofore been taken in account in calculating the amount of an Excluded
Refunding. For such purpose, "QUALIFIED SUBORDINATED DEBT" means Subordinated
Debt of the Company or a Subsidiary of the Company (or trust preferred
securities or similar Capital Stock of a Subsidiary of the Company as to which
any related Debt of the Company or other Subsidiaries of the Company is
Subordinated Debt) which does not mature and is not subject to mandatory
repurchase or redemption or to repurchase or redemption at the option of the
holder thereof (other than pursuant to a change of control provision not
materially more favorable to the holder thereof than that set forth in Section
4.1 of this Supplemental Indenture) in whole or in part prior to the Stated
Maturity of the principal of the Notes.

         "FUNDS FROM OPERATIONS" for any period means Earnings from Operations
for such period plus amounts which have been deducted, and minus amounts that
have been added, for the following (without duplication): (i) provision for
taxes of the Company and its Subsidiaries based on income, (ii) amortization of
debt discount and deferred financing costs, (iii) provisions for gains and
losses on properties and property depreciation and amortization, (iv) the effect
of any noncash charge resulting from a change in accounting principles in
determining Earnings from Operations for such period, (v) expenses and charges
relating to the spin-off of Five Star Quality Care, Inc., and (vi) amortization
of deferred charges.

         "INTEREST PAYMENT DATE" with respect to the Notes is defined in Section
101 of the Base Indenture and Section 2.1(b) of this Supplemental Indenture.

         "MOODY'S" means Moody's Investors Services, Inc. or any successor
thereof.

         "NET CASH PROCEEDS" means the proceeds of any issuance or sale of
Capital Stock, in the form of cash or Cash Equivalents, including payments in
respect of deferred payment obligations when received in the form of, or shares
or other assets when disposed for, cash or Cash Equivalents (except to the
extent that such obligations are financed or sold with recourse to the Company
or any Subsidiary), net of attorney's fees, accountant's fees and brokerage,

                                      -4-

<PAGE>

consultation, underwriting and other fees and expenses actually incurred in
connection with such issuance or sale and net of taxes paid or payable as a
result thereof.

         "NOTES" means the Company's 7 7/8% Senior Notes due 2015, issued under
the Indenture.

         "PUBLIC EQUITY OFFERING" means an underwritten public offering by the
Company of its common shares of beneficial interest pursuant to an effective
registration statement under the Securities Act, in which the aggregate gross
proceeds (prior to reduction for underwriting or brokerage discounts,
commissions or fees, attorney's or accountant's fees or other fees or expenses
in connection with such offering) in the form of cash including payments in
respect of deferred payment obligations when received in the form of cash
(except to the extent that such obligations are financed or sold with recourse
to the Company or any Subsidiary), are not less than $25,000,000.

         "REGULAR RECORD DATE" with respect to the Notes is defined in Section
101 of the Base Indenture and Section 2.1(b) of this Supplemental Indenture.

         "RMR" means Reit Management & Research LLC, a Delaware limited
liability company.

         "SECURED DEBT" means Debt secured by any Encumbrance.

         "STANDARD & POOR'S" means Standard & Poor's Rating Services, a division
of The McGraw-Hill Companies, Inc. or any successor thereof.

         "SUBORDINATED DEBT" means Debt which by the terms of such Debt is
subordinated in right of payment to the principal of and interest and premium,
if any, on the Notes.

         "SUBSIDIARY" means any corporation or other entity of which a majority
of (i) the voting power of the voting equity securities or (ii) the outstanding
equity interests of which are owned, directly or indirectly, by the Company or
one or more other Subsidiaries of the Company. For the purposes of this
definition, "voting equity securities" means equity securities having voting
power for the election of directors or similar functionaries, whether at all
times or only so long as no senior class of security has such voting power by
reason of any contingency.

         "TOTAL ASSETS" as of any date means the sum of (i) the Undepreciated
Real Estate Assets and (ii) all other assets of the Company and its Subsidiaries
determined in accordance with GAAP (but excluding accounts receivable and
intangibles).

         "TOTAL UNENCUMBERED ASSETS" means the sum of (i) the Undepreciated Real
Estate Assets of the Company and its Subsidiaries not securing any portion of
Secured Debt and (ii) all other assets, including accounts receivable and
intangibles, of the Company and its Subsidiaries not securing any portion of
Secured Debt determined on a consolidated basis in accordance with GAAP. If
Secured Debt secured by real estate or other property or assets of the Company
or its Subsidiaries ("Secondary Collateral") is fully defeased in accordance
with the terms thereof or is also secured by cash or Cash Equivalents in an
amount (determined at the lesser of (i) carrying value in accordance with GAAP
or (ii) fair market value) at least equal to the outstanding principal

                                      -5-

<PAGE>

amount of such Secured Debt, such Secondary Collateral shall be deemed not to
secure any portion of such Secured Debt for purposes of this definition.

         "UNDEPRECIATED REAL ESTATE ASSETS" as of any date means the cost
(original cost plus capital improvements less adjustments to carrying value in
accordance with GAAP made prior to January 1, 2001) of real estate and
associated tangible personal property used in connection with the real estate
assets of the Company and its Subsidiaries on such date, before depreciation and
amortization determined on a consolidated basis in accordance with GAAP.

         "UNSECURED DEBT" means any Debt which is not Secured Debt.

         "VOTING STOCK" of any Person means the Capital Stock of such Person
that is at the time entitled to vote in the election of the board of directors,
board of trustees or the equivalent of such Person.

                                    ARTICLE 2

                               TERMS OF THE NOTES

         SECTION 2.1 Pursuant to Section 301 of the Indenture, the Notes shall
have the following terms and conditions:

         (a) TITLE; AGGREGATE PRINCIPAL AMOUNT; FORM OF NOTES. The Notes shall
be Registered Securities under the Indenture and shall be known as the Company's
"7 7/8% Senior Notes due 2015." The Notes will be limited to an aggregate
principal amount of $150,000,000, subject to the right of the Company to reopen
such series for issuances of additional securities of such series and except (i)
as provided in this Section and (ii) for Securities authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Section 304, 305, 306, 906 or 1107 of the
Indenture and except for any Securities which, pursuant to Section 303 of the
Indenture, are deemed never to have been authenticated and delivered hereunder.
The Notes (together with the Trustee's certificate of authentication) shall be
substantially in the form of Exhibit A hereto, which is hereby incorporated in
and made a part of this Supplemental Indenture.

         The Notes will be issued in the form of one or more registered global
securities without coupons ("Global Notes") that will be deposited with, or on
behalf of, The Depository Trust Company ("DTC"), and registered in the name of
DTC's nominee, Cede & Co. Except under the circumstance described below, the
Notes will not be issuable in definitive form. Unless and until it is exchanged
in whole or in part for the individual notes represented thereby, a Global Note
may not be transferred except as a whole by DTC to a nominee of DTC or by a
nominee of DTC to DTC or another nominee of DTC or by DTC or any nominee of DTC
to a successor depositary or any nominee of such successor.

         So long as DTC or its nominee is the registered owner of a Global Note,
DTC or such nominee, as the case may be, will be considered the sole owner or
holder of the Notes represented by such Global Note for all purposes under this
Supplemental Indenture. Except as described below, owners of beneficial interest
in Notes evidenced by a Global Note will not be entitled to have any of the
individual Notes represented by such Global Note registered in their

                                      -6-

<PAGE>

names, will not receive or be entitled to receive physical delivery of any such
Notes in definitive form and will not be considered the owners or holders
thereof under the Indenture or this Supplemental Indenture.

         If DTC is at any time unwilling, unable or ineligible to continue as
depositary and a successor depositary is not appointed by the Company within 90
days, the Company will issue individual Notes in exchange for the Global Note or
Global Notes representing such Notes. In addition, the Company may at any time
and in its sole discretion, subject to certain limitations set forth in the
Indenture, determine not to have any of such Notes represented by one or more
Global Notes and, in such event, will issue individual Notes in exchange for the
Global Note or Global Notes representing the Notes. Individual Notes so issued
will be issued in denominations of $1,000 and integral multiples thereof.

         (b) INTEREST AND INTEREST RATE. The Notes will bear interest at a rate
of 7 7/8% per annum, from April 21, 2003 (or, in the case of Notes issued upon
the reopening of this series of Notes, from the date designated by the Company
in connection with such reopening) or from the immediately preceding Interest
Payment Date to which interest has been paid or duly provided for, payable
semiannually on each April 15 and October 15, commencing October 15, 2003 (each
of which shall be an "Interest Payment Date"), to the Persons in whose names the
Notes are registered in the Security Register at the close of business on April
1 and October 1, as the case may be (whether or not a Business Day), next
preceding such Interest Payment Date (each, a "Regular Record Date").

         (c) PRINCIPAL REPAYMENT; CURRENCY. The Stated Maturity of the principal
of the Notes is April 15, 2015, PROVIDED, HOWEVER, the Notes may be earlier
redeemed at the option of the Company as provided in paragraph (d) below. The
principal of each Note payable at its Stated Maturity shall be paid against
presentation and surrender thereof at the Corporate Trust Office of the Trustee,
located initially at One Federal Street, Boston, Massachusetts 02110, in such
coin or currency of the United States of America as at the time of payment is
legal tender for the payment of public or private debts.

         (d)  REDEMPTION AT THE OPTION OF THE COMPANY.

                  (i) The Notes will be subject to redemption at any time and
         from time to time on or after April 15, 2008 at the option of the
         Company, in whole or in part, upon not less than 30 nor more than 60
         days' notice to each Holder of Notes to be redeemed at its address
         appearing in the Security Register, at the following redemption prices
         (expressed in percentages of principal amount), plus accrued and unpaid
         interest, if any, to but excluding the applicable Redemption Date, if
         redeemed during the 12-month period beginning on April 15 of the years
         indicated below:

<TABLE>
<CAPTION>

         YEAR                                       REDEMPTION PRICE
         ----                                       ----------------
         <S>                                        <C>
         2008                                            103.938%
         2009                                            102.625%
         2010                                            101.313%
         2011 and thereafter                             100.000%

</TABLE>

                                      -7-

<PAGE>

                  (ii) In addition, up to 35% of the aggregate principal amount
         of the Notes issued hereunder will be subject to redemption at any time
         and from time to time prior to April 15, 2006 at the option of the
         Company, in whole or in part, with the net proceeds of one or more
         Public Equity Offerings, upon not less than 30 nor more than 60 days'
         notice to each Holder of Notes to be redeemed at its address appearing
         in the Security Register, at a redemption price (expressed in
         percentages of principal amount) of 107.875%, plus accrued and unpaid
         interest, if any, to but excluding the applicable Redemption Date;
         PROVIDED (i) that Notes representing at least 65% of the aggregate
         principal amount of the Notes issued hereunder remains outstanding
         immediately after each such redemption and (ii) such redemption occurs
         within 90 days after the date of the closing of the applicable Public
         Equity Offering.

         (e) NOTICES. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by
any standard form of telecommunication. Notices to the Company shall be directed
to it at 400 Centre Street, Newton, Massachusetts 02458, fax number (617)
796-8349 Attention: President; notices to the Trustee shall be directed to it at
One Federal Street, Boston, Massachusetts 02110, fax number (617) 603-6683
Attention: Corporate Trust Department, Re: Senior Housing Properties Trust 7
7/8% Senior Notes due 2015; or as to either party, at such other address as
shall be designated by such party in a written notice to the other party.

         (f) GLOBAL NOTE LEGEND. Each Global Note shall bear the following
legend on the face thereof:

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER
         OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND
         ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
         SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
         (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
         REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
         PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
         IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
         INTEREST HEREIN.

         (g) APPLICABILITY OF DISCHARGE, DEFEASANCE AND COVENANT DEFEASANCE
PROVISIONS. The Discharge, Defeasance and Covenant Defeasance provisions in
Article Thirteen of the Indenture will apply to the Notes.

                                      -8-

<PAGE>

                                    ARTICLE 3

                              ADDITIONAL COVENANTS

         SECTION 3.1 Holders of the Notes shall have the benefit of the
following covenants, in addition to the covenants of the Company set forth in
Article Eight of the Indenture:

         (a)  LIMITATIONS ON INCURRENCE OF DEBT.

                  (i) The Company will not, and will not permit any Subsidiary
         to, incur any Debt if, immediately after giving effect to the
         incurrence of such additional Debt and the application of the proceeds
         thereof, the aggregate principal amount of all outstanding Debt of the
         Company and its Subsidiaries on a consolidated basis determined in
         accordance with GAAP is greater than 60% of the sum ("Adjusted Total
         Assets") of (without duplication) (A) the Total Assets of the Company
         and its Subsidiaries as of the end of the calendar quarter covered in
         the Company's Annual Report on Form 10-K, or Quarterly Report on Form
         10-Q, as the case may be, most recently filed with the Securities and
         Exchange Commission (or, if such filing is not permitted under the
         Exchange Act, with the Trustee) prior to the incurrence of such
         additional Debt and (B) the purchase price of any real estate assets or
         mortgages receivable acquired, and the amount of any securities
         offering proceeds received (to the extent that such proceeds were not
         used to acquire real estate assets or mortgages receivable or used to
         reduce Debt), by the Company or any Subsidiary since the end of such
         calendar quarter, including those proceeds obtained in connection with
         the incurrence of such additional Debt.

                  (ii) The Company will not, and will not permit any Subsidiary
         to, incur any Secured Debt if, immediately after giving effect to the
         incurrence of such additional Secured Debt and the application of the
         proceeds thereof, the aggregate principal amount of all outstanding
         Secured Debt of the Company and its Subsidiaries on a consolidated
         basis is greater than 40% of Adjusted Total Assets.

                  (iii) The Company will not, and will not permit any Subsidiary
         to, incur any Debt if the ratio of Consolidated Income Available for
         Debt Service to the Annual Debt Service for the four consecutive fiscal
         quarters most recently ended prior to the date on which such additional
         Debt is to be incurred shall have been less than 2.0 to 1.0, on a pro
         forma basis after giving effect thereto and to the application of the
         proceeds therefrom, and calculated on the assumption that (A) such Debt
         and any other Debt incurred by the Company and its Subsidiaries on a
         consolidated basis since the first day of such four-quarter period and
         the application of the proceeds therefrom, including to refinance other
         Debt, had occurred at the beginning of such period; (B) the repayment
         or retirement of any other Debt by the Company and its Subsidiaries
         since the first date of such four-quarter period had been repaid or
         retired at the beginning of such period (except that, in making such
         computation, the amount of Debt under any revolving credit facility
         shall be computed based upon the average daily balance of such Debt
         during such period); (C) in the case of Acquired Debt or Debt incurred
         in connection with any acquisition since the first day of such
         four-quarter period, the related acquisition had occurred as of the
         first day of such period with appropriate adjustments with respect to
         such acquisition being included in such pro forma calculation; and (D)
         in the case of any acquisition or disposition by the Company or its
         Subsidiaries on a consolidated basis of any asset or group of assets
         since the first day of such four-quarter period, whether by merger,
         stock

                                       -9-

<PAGE>

         purchase or sale, or asset purchase or sale, such acquisition or
         disposition or any related repayment of Debt had occurred as of the
         first day of such period with the appropriate adjustments with respect
         to such acquisition or disposition being included in such pro forma
         calculation. If the Debt giving rise to the need to make the foregoing
         calculation or any other Debt incurred after the first day of the
         relevant four-quarter period bears interest at a floating rate then,
         for purposes of calculating the Annual Debt Service, the interest rate
         on such Debt shall be computed on a pro forma basis as if the average
         interest rate which would have been in effect during the entire such
         four-quarter period had been the applicable rate for the entire such
         period.

         (b) LIMITATIONS ON DISTRIBUTIONS. The Company will not, and will not
permit any Subsidiary to, (i) declare or pay any dividend or make any
distribution on or with respect to the Company's Capital Stock (other than (x)
dividends or distributions payable solely in shares of the Company's Capital
Stock, other than Disqualified Stock, or in options, warrants or other rights to
acquire shares of such Capital Stock and (y) the spin-off distribution of the
Capital Stock of Five Star Quality Care, Inc.); (ii) purchase, redeem, retire or
otherwise acquire for value any shares of the Company's Capital Stock; or (iii)
make any voluntary or optional principal payment, or voluntary or optional
redemption, repurchase, defeasance, or other acquisition or retirement for
value, of Subordinated Debt (other than Excluded Refundings); unless,
immediately after giving pro forma effect to such distribution (each, a
"Restricted Payment"):

         (A)  no Default under the Indenture shall have occurred and be
              continuing or would occur as a result of such Restricted Payment;

         (B)  the Company and its Subsidiaries would have been permitted to
              incur at least $1.00 of additional Debt (other than Debt between
              the Company and one or more its Subsidiaries or between one or
              more its Subsidiaries) under the terms of Section 3.1(a) of this
              Supplemental Indenture; and

         (C)  the aggregate amount of all Restricted Payments (the amount, if
              other than in cash, to be determined in good faith by the Board,
              whose determination shall be conclusive and evidenced by a Board
              Resolution) made after the date of this Supplemental Indenture
              would not exceed the sum of:

              (I)  95% of Funds from Operations accrued on a cumulative basis
                   during the period (taken as one accounting period) beginning
                   on October 1, 2001 and ending on the last day of the
                   Company's then most recently completed calendar quarter; plus

             (II)  100% of the aggregate Net Cash Proceeds received by the
                   Company after October 1, 2001 from the issuance or sale of
                   Capital Stock of the Company to a Person which is not a
                   Subsidiary of the Company; plus

            (III)  $15,000,000.

Notwithstanding the foregoing, this Section 3.1(b) shall not prohibit or limit,
and shall not be violated by, (i) any dividend, distribution or other action
which is necessary to distribute 100%

                                     -10-

<PAGE>

of the Company's real estate investment trust taxable income (determined prior
to any deductions for dividends paid) or to maintain the Company's status as a
real estate investment trust under the Internal Revenue Code of 1986, as
amended, if the aggregate principal amount of all outstanding Debt of the
Company and its Subsidiaries on a consolidated basis determined in accordance
with GAAP is less than 60% of Adjusted Total Assets, or (ii) the payment of any
dividend or other distribution within 60 days of the declaration thereof if at
the date of declaration thereof such payment would have complied with the
provisions of this Section 3.1(b).

         (c) MAINTENANCE OF TOTAL UNENCUMBERED ASSETS. The Company and its
Subsidiaries will maintain at all times Total Unencumbered Assets of not less
than 150% of the aggregate outstanding principal amount of the Unsecured Debt of
the Company and its Subsidiaries on a consolidated basis in accordance with
GAAP.

         (d) COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS. In addition
to the provisions of Section 801 of the Indenture, the Company shall not
consolidate with or merge into any other Person or convey, transfer or lease its
properties and assets substantially as an entirety to any Person, and the
Company shall not permit any Person to consolidate with or merge into the
Company or convey, transfer or lease its properties and assets substantially as
an entirety to the Company, unless immediately after giving effect to such
transaction, the Person formed by such consolidation or into which the Company
is merged or the Person which acquires by conveyance or transfer, or which
leases, the properties and assets of the Company substantially as an entirety
would be permitted to incur at least $1.00 of additional Debt (other than Debt
between such Person and one or more of its Subsidiaries or between one or more
or its Subsidiaries) under the terms of Section 3.1(a) of this Supplemental
Indenture.

                                    ARTICLE 4

                   OFFER TO REPURCHASE UPON CHANGE OF CONTROL

         SECTION 4.1 Subject to Section 4.2, if a Change of Control occurs, the
Company shall make an offer (a "CHANGE OF CONTROL OFFER") to each Holder of the
Notes to repurchase all or any part (equal to $1,000 or an integral multiple
thereof) of such Holder's Notes at a purchase price, in cash, equal to 101% of
the aggregate outstanding principal amount of the Notes repurchased, plus
accrued and unpaid interest thereon, if any (subject to the right of Holders on
the relevant record date to receive interest due on the relevant interest
payment date), to the date of purchase (the "CHANGE OF CONTROL PAYMENT").

         Within 10 days following any Change of Control, the Company shall mail
a written offer (an "Offer") to each Holder in accordance with the terms of
Section 1104 of the Base Indenture. The Offer shall contain all the information
required by applicable law to be included therein. The Offer shall also contain
information concerning the business of the Company and its Subsidiaries which
the Company in good faith believes will enable such Holders to make an informed
decision with respect to the Change of Control Offer. The Offer shall contain
all instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Change of Control Offer. The Offer shall also state:

                                      -11-

<PAGE>

         (a) that the Change of Control Offer is being made pursuant to this
covenant and that all Notes tendered will be accepted for payment on the Change
of Control Payment Date, as defined below;

         (b) the purchase price and the purchase date, which shall be no earlier
than 30 days and no later than 60 days from the date such notice is mailed (the
"CHANGE OF CONTROL PAYMENT DATE"), which date shall also be the date the Offer
expires;

         (c)  that any Note not tendered will continue to accrue interest;

         (d) that, unless the Company defaults in the payment of the Change of
Control Payment, all Notes accepted for payment pursuant to the Change of
Control Offer shall cease to accrue interest after the Change of Control Payment
Date;

         (e) that Holders electing to have any Notes purchased pursuant to a
Change of Control Offer will be required to surrender the Notes, with the form
entitled "Option of Holder to Elect Purchase" on the reverse of the Notes
completed, to the Paying Agent at the address specified in the notice prior to
close of business on the date specified in such notice, which shall not be
earlier than first to occur of (i) the thirtieth day following the date of such
notice and (ii) the third Business Day preceding the Change of Control Payment
Date;

         (f) that Holders will be entitled to withdraw their election if the
Paying Agent receives, not later than the close of business on the second
Business Day preceding the Change of Control Payment Date, a telegram, telex,
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of Notes delivered for purchase, and a statement that such
Holder is withdrawing its election to have the Notes purchased;

         (g) that Holders whose Notes are being purchased only in part will be
issued new Notes equal in principal amount to the unpurchased portion of the
Notes surrendered, which unpurchased portion must be equal to $1,000 in
principal amount or an integral multiple thereof; and

         (h) that Holders electing to have a Note purchased pursuant to a Change
of Control Offer may elect to have Notes purchased in integral multiples of
$1,000 only.

         On the Change of Control Payment Date, the Company shall, to the
extent lawful,

              (i) accept for payment all Notes or portions of the Notes properly
         tendered pursuant to the Change of Control Offer;

              (ii) deposit with the Paying Agent an amount equal to the Change
         of Control Payment in respect of all Notes or portions of the Notes so
         tendered; and

              (iii) deliver or cause to be delivered to the Trustee the Notes
         so accepted together with an Officers' Certificate stating the
         aggregate principal amount of Notes or portions thereof being
         purchased by the Company.

                                      -12-

<PAGE>

         The Paying Agent shall promptly mail to each Holder of Notes properly
tendered payment in an amount equal to the Change of Control Payment with
respect to the purchased Notes, and the Trustee shall promptly authenticate and
mail (or cause to be transferred by book entry) to each Holder a new Note equal
in principal amount to any unpurchased portion of the Notes surrendered by such
Holder, if any; PROVIDED, HOWEVER, that each such new Note shall be in a
principal amount of $1,000 or an integral multiple thereof. The Company shall
publicly announce the results of the Change of Control Offer on or as soon as
practicable after the Change of Control Payment Date.

         The Change of Control provisions described above shall be applicable
whether or not any other provisions of this Indenture are applicable.

         The Company shall comply with the requirements of Section 14(e) of the
Exchange Act and any other securities laws or regulations to the extent those
laws and regulations are applicable to any Change of Control Offer. If the
provisions of any of the applicable securities laws or securities regulations
conflict with the provisions of this Section 4.1, the Company shall comply with
the applicable securities laws and regulations and shall not be deemed to have
breached its obligations under this Section 4.1 by virtue of the compliance.

         Notwithstanding the foregoing provisions of this Section 4.1, the
Company shall not be required to make or give notice of a Change of Control
Offer and, if made or given, shall not be required to repurchase Notes on the
related Change of Control Payment Date if, prior to the date on which such
notice or Change of Control Offer is required to be given or made or such Change
of Control Payment Date, as applicable

              (i) the Company shall have irrevocably exercised its option to
         redeem the Notes in whole pursuant to Section 2.1(d) of this
         Supplemental Indenture; PROVIDED that if the Company shall default in
         its obligation to redeem the Notes pursuant to such redemption on the
         applicable Redemption Date, the Company shall become obligated to
         commence a Change of Control Offer in accordance with this Article 4 on
         such Redemption Date; or

              (ii) giving effect to the related Change of Control, the Moody's
         and Standard & Poor's shall have confirmed that the Notes are rated
         "Ba3" (or its equivalent) or higher and "BB-" or higher, respectively.

         The Company shall not be required to make a Change of Control Offer
upon a Change of Control if a third party makes the Change of Control Offer in
the manner, at the times and otherwise in compliance with the requirements set
forth in this Indenture applicable to a Change of Control Offer made by the
Company and purchases all Notes properly tendered and not withdrawn under such
Change of Control Offer.

         The provisions of the Indenture relating to the Company's obligation to
make an offer to repurchase the Notes as a result of a Change of Control
(including this Article 4 and clause (a) of

                                      -13-

<PAGE>

Section 5.1) may be waived or modified with the consent of the Holders of at
least a majority in principal amount of the Notes then outstanding.

         SECTION 4.2. The provisions of Section 4.1 shall terminate and cease to
have further force or effect on or after the first date, if any, on which the
Notes shall have been rated "Baa3" (or its equivalent) or higher by Moody's and
"BBB-" (or its equivalent) or higher by Standard & Poor's.

                                    ARTICLE 5

                          ADDITIONAL EVENTS OF DEFAULT

         SECTION 5.1 For purposes of this Supplemental Indenture and the Notes,
in addition to the Events of Default set forth in Section 501 of the Indenture,
it shall also constitute an "Event of Default" if (a) the Company shall have
failed to consummate a Change of Control Offer in accordance with the provisions
of Article 4 of this Supplemental Indenture, or (b) one or more final judgments
or orders (not covered by insurance, treating any deductibles, self-insurance or
retention as not so covered) for the payment of money in excess of $10,000,000
in the aggregate for all such judgments or orders against the Company or any
Subsidiary and such judgments or orders shall not be paid or discharged, and
there shall be a period of 60 consecutive days after the final judgment or order
that causes such aggregate amount to exceed $10,000,000 million during which a
stay of enforcement of such final judgment(s) or order(s) are not in effect.

         SECTION 5.2 Notwithstanding any provisions to the contrary in the
Indenture including, without limitation, Section 501(a) thereof, the failure to
pay the principal of or any premium on the Notes at its Maturity shall
constitute an "Event of Default".

         SECTION 5.3 Notwithstanding any provisions to the contrary in the
Indenture including, without limitation, Section 501(e) thereof, the default
under any bonds, debentures, notes or other evidences of indebtedness of the
Company, or under any mortgage, indenture or other instrument of the Company
(including a default with respect to Securities of any series other than the
Notes) under which there may be issued or by which there may be secured any
indebtedness of the Company (or by one or more Subsidiaries, the repayment of
which the Company has guaranteed or for which the Company is directly
responsible or liable as obligor or guarantor), whether such indebtedness now
exists or shall hereafter be created, which default(s) shall constitute a
failure to pay an aggregate principal amount exceeding $10,000,000 of such
indebtedness when due and payable after the expiration of any applicable grace
period with respect thereto and shall have resulted in such indebtedness in an
aggregate principal amount exceeding $10,000,000 becoming or being declared due
and payable prior to the date on which it would otherwise have become due and
payable, without such indebtedness having been discharged, or such acceleration
having been rescinded or annulled, within a period of 10 days after there shall
have been given, by registered or certified mail, to the Company by the Trustee
or to the Company and the Trustee by the Holders of at least a majority in
principal amount of the Outstanding Notes a written notice specifying such
default and requiring the Company to cause such indebtedness to be discharged or
cause such acceleration to be rescinded or annulled

                                      -14-

<PAGE>

and stating that such notice is a "NOTICE OF DEFAULT" hereunder, shall
constitute an Event of Default.

                                    ARTICLE 6

                                  EFFECTIVENESS

         SECTION 6.1 This Supplemental Indenture shall be effective for all
purposes as of the date and time this Supplemental Indenture has been executed
and delivered by the Company and the Trustee in accordance with Article Nine of
the Indenture. As supplemented hereby, the Indenture is hereby confirmed as
being in full force and effect.

                                    ARTICLE 7

                                NOTICE TO TRUSTEE

         SECTION 7.1 Notwithstanding anything to the contrary in the Indenture
including, without limitation, Section 1102 thereof, in connection with the
redemption at the election of the Company of less than all the Notes, the
Company shall notify the Trustee of the establishment of a Redemption Date and
the principal amount of Notes to be redeemed at least 45 days prior to such
Redemption Date unless a shorter period shall be satisfactory to the Trustee.

                                    ARTICLE 8

                                  MISCELLANEOUS

         SECTION 8.1 In the event any provision of this Supplemental Indenture
shall be held invalid or unenforceable by any court of competent jurisdiction,
such holding shall not invalidate or render unenforceable any other provision
hereof or any provision of the Indenture.

         SECTION 8.2 To the extent that any terms of this Supplemental Indenture
or the Notes are inconsistent with the terms of the Indenture, the terms of this
Supplemental Indenture or the Notes shall govern and supersede such inconsistent
terms.

         SECTION 8.3 This Supplemental Indenture shall be governed by and
construed in accordance with the laws of the State of New York.

         SECTION 8.4 This Supplemental Indenture may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

                                      -15-

<PAGE>

         IN WITNESS WHEREOF, the Company and the Trustee have caused this
Supplemental Indenture to be executed as an instrument under seal in their
respective corporate names as of the date first above written.

                                    SENIOR HOUSING PROPERTIES TRUST

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

                                    U.S. BANK NATIONAL ASSOCIATION, as Trustee

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

                                      -16-

<PAGE>

                                                                     EXHIBIT A

                                  FORM OF NOTE

                           [Form of Face of Security]

                         SENIOR HOUSING PROPERTIES TRUST

                          7 7/8% Senior Notes due 2015

No. ____                                                          $ ___________

         Senior Housing Properties Trust, a real estate investment trust duly
organized and existing under the laws of Maryland (herein called the "COMPANY",
which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to
_____________________________, or registered assigns, the principal sum of
___________________ Dollars ($_____________) on April 15, 2015, and to pay
interest thereon from April 21, 2003 or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semi-annually on
April 15 and October 15 in each year, commencing October 15, 2003 at the rate of
7 7/8% per annum, until the principal hereof is paid or made available for
payment. The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the April 1 or October 1 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Securities of this series not less than 10 days prior to
such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture.

         Payment of the principal of (and premium, if any) and any such interest
on this Security will be made at the office or agency of the Company maintained
for that purpose in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts;
PROVIDED, HOWEVER, that at the option of the Company payment of interest may be
made by check mailed to the address of the Person entitled thereto as such
address shall appear in the Security Register.

         Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

         THE ARTICLES OF AMENDMENT AND RESTATEMENT ESTABLISHING SENIOR HOUSING
PROPERTIES TRUST DATED SEPTEMBER 20, 1999, A COPY OF WHICH, TOGETHER WITH ALL
AMENDMENTS THERETO (THE "DECLARATION"), IS DULY FILED IN THE OFFICE OF THE STATE
DEPARTMENT OF ASSESSMENTS AND TAXATION OF MARYLAND, PROVIDES THAT THE NAME
"SENIOR HOUSING PROPERTIES TRUST" REFERS TO THE TRUSTEES UNDER THE DECLARATION
COLLECTIVELY AS TRUSTEES, BUT NOT INDIVIDUALLY OR PERSONALLY, AND THAT NO
TRUSTEE, OFFICER, SHAREHOLDER, EMPLOYEE OR AGENT OF THE COMPANY SHALL BE HELD TO
ANY PERSONAL LIABILITY, JOINTLY OR SEVERALLY, FOR ANY OBLIGATION OF, OR CLAIM
AGAINST, THE COMPANY. ALL PERSONS DEALING WITH THE COMPANY SHALL LOOK ONLY TO
THE ASSETS OF THE COMPANY FOR THE PAYMENT OF ANY SUM OR THE PERFORMANCE OF ANY
OBLIGATION.

                                      A-1

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

Dated:                               SENIOR HOUSING PROPERTIES TRUST

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

                          CERTIFICATE OF AUTHENTICATION

Dated:

         This is one of the Securities of the series designated therein referred
to in the within-mentioned Indenture.

                                     [U.S. BANK NATIONAL ASSOCIATION],
                                     AS TRUSTEE

                                     By
                                        --------------------------------------
                                        AUTHORIZED OFFICER

                                      A-2

<PAGE>

                          [Form of Reverse of Security]

         1. GENERAL. This Security is one of a duly authorized issue of
securities of the Company (herein called the "SECURITIES"), issued and to be
issued in one or more series under an Indenture, dated as of December 20, 2001,
between the Company and State Street Bank and Trust Company ("STATE STREET") (as
amended, supplemented or otherwise modified from time to time, the "BASE
INDENTURE"), as supplemented by a Supplemental Indenture No. 3, dated as of
April 21, 2003, between the Company and U.S. Bank National Association, as
successor trustee to State Street (herein called the "TRUSTEE", which term
includes State Street as applicable) (as amended, supplemented or otherwise
modified from time to time, the "SUPPLEMENTAL INDENTURE" and the Base Indenture,
as supplemented by such Supplemental Indenture, the "INDENTURE"), and reference
is hereby made to the Indenture for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Trustee, and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one
of the series designated on the face hereof.

         2. OPTIONAL REDEMPTION. (i) The Notes will be subject to redemption at
any time and from time to time on or after April 15, 2008 at the option of the
Company, in whole or in part, upon not less than 30 nor more than 60 days'
notice to each Holder of Notes to be redeemed at its address appearing in the
Security Register, at the following redemption prices (expressed in percentages
of principal amount), plus accrued and unpaid interest, if any, to but excluding
the applicable Redemption Date, if redeemed during the 12-month period beginning
on April 15 of the years indicated below:

<TABLE>
<CAPTION>

         YEAR                                       REDEMPTION PRICE
         ----                                       ----------------
         <S>                                        <C>
         2008                                            103.938%
         2009                                            102.625%
         2010                                            101.313%
         2011 and thereafter                             100.000%

</TABLE>

              (ii) In addition, up to 35% of the aggregate principal amount of
the Notes issued hereunder will be subject to redemption at any time and from
time to time prior to April 15, 2006 at the option of the Company, in whole or
in part, with the net proceeds of one or more Public Equity Offerings, upon not
less than 30 nor more than 60 days' notice to each Holder of Notes to be
redeemed at its address appearing in the Security Register, at a redemption
price (expressed in percentages of principal amount) of 107.875%, plus accrued
and unpaid interest, if any, to but excluding the applicable Redemption Date;
PROVIDED (i) that Notes representing at least 65% of the aggregate principal
amount of the Notes issued hereunder remains outstanding immediately after each
such redemption and (ii) such redemption occurs within 90 days after the date of
the closing of the applicable Public Equity Offering.

              (iii) In the event of redemption of this Security in part only, a
new Security or Securities of this series and of like tenor for the unredeemed
portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.

         3. DEFEASANCE. The Indenture contains provisions for defeasance at any
time of the entire indebtedness of this Security upon compliance with certain
conditions set forth in the Indenture.

         4. DEFAULTS AND REMEDIES. If an Event of Default with respect to
Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture.

         5. ACTIONS OF HOLDERS. The Indenture permits, with certain exceptions
as therein provided, the amendment thereof and the modification of the rights
and obligations of the Company and the rights of the Holders of the Securities
of each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of a majority in principal amount of
the Securities at the time Outstanding of each series to be affected. The
Indenture also contains provisions permitting the Holders of specified
percentages in principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all Securities of such

                                      A-3

<PAGE>

series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Security shall be conclusive
and binding upon such Holder and upon all future Holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange
therefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.

         As provided in and subject to the provisions of the Indenture, the
Holder of this Security shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or
for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than a majority in principal
amount of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such Event
of Default as Trustee and offered the Trustee reasonable indemnity, and the
Trustee shall not have received from the Holders of a majority in principal
amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such
proceeding, for 60 days after receipt of such notice, request and offer of
indemnity. The foregoing shall not apply to any suit instituted by the Holder of
this Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed
herein.

         6. PAYMENTS NOT IMPAIRED. No reference herein to the Indenture and no
provision of this Security or of the Indenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the
principal of and any premium and interest on this Security at the times, place
and rate, and in the coin or currency, herein prescribed.

         7. DENOMINATIONS, TRANSFER, EXCHANGE. As provided in the Indenture and
subject to certain limitations therein set forth, the transfer of this Security
is registrable in the Security Register, upon surrender of this Security for
registration of transfer at the office or agency of the Company in any place
where the principal of and any premium and interest on this Security are
payable, duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to the Company and the Security Registrar duly executed by,
the Holder hereof or his attorney duly authorized in writing, and thereupon one
or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees.

         The Securities of this series are issuable only in registered form
without coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal amount
of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

         No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.

         8. PERSONS DEEMED OWNERS. Prior to due presentment of this Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered as
the owner hereof for all purposes, whether or not this Security be overdue, and
neither the Company, the Trustee nor any such agent shall be affected by notice
to the contrary.

         9. DEFINED TERMS. All terms used in this Security which are defined in
the Indenture shall have the meanings assigned to them in the Indenture.

                                      A-4

<PAGE>

                                [ASSIGNMENT FORM]

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<CAPTION>

<S>                                             <C>
TEN COM --  as tenants in common                UNIF GIFT MIN ACT -- _______ Custodian_______
TEN ENT --  as tenants by the entireties                                                (Cust) (Minor)
JT TEN  --  as joint tenants with right                              Under Uniform Gifts to Minors
            of survivorship and not as                               Act
            tenants in common                                            -----------
                                                                           (State)

</TABLE>

     Additional abbreviations may also be used though not in the above list.

                     --------------------------------------

FOR VALUE RECEIVED, the undersigned registered holder hereby sell(s), assign(s)
and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

  ---------------------------------------------------------------------
  |                                                                   |
  |                                                                   |
  ---------------------------------------------------------------------

-------------------------------------------------------------------------------
             PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE

-------------------------------------------------------------------------------
the within security and all rights thereunder, hereby irrevocably constituting
and appointing

-------------------------------------------------------------------------------
Attorney to transfer said security on the books of the Company with full power
of substitution in the premises.

Dated:                          Signed:
      -----------------------           ---------------------------------------

                                Notice: The signature to this assignment must
                                        correspond with the name as it appears
                                        upon the face of the within security in
                                        every particular, without alteration or
                                        enlargement or any change whatever.

                                Signature Guarantee*:
                                                      -------------------------

                                        * Participant in a recognized Signature
                                        Guarantee Medallion Program (or other
                                        signature guarantor acceptable to the
                                        Trustee).

                                      A-5

<PAGE>

                  [FORM OF OPTION OF HOLDER TO ELECT PURCHASE]

                       OPTION OF HOLDER TO ELECT PURCHASE

If you want to elect to have this Note purchased by the Company pursuant to
Section 4.2 of the Supplemental Indenture referred to in this Note pursuant to
the Company's Change of Control Offer, check this box: [__]

If you want to elect to have only part of this Note purchased by the Company
pursuant to Section 4.2 of the Supplemental Indenture referred to in this Note
pursuant to the Company's Change of Control Offer, state the amount you elect to
have purchased (must be an integral multiple of $1,000): $__________________

PLEASE INSERT YOUR SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER:

  ---------------------------------------------------------------------
  |                                                                   |
  |                                                                   |
  ---------------------------------------------------------------------

Dated:                          Signed:
      -----------------------           ---------------------------------------

                                Notice: The signature to this election must
                                        correspond with the name as it appears
                                        upon the face of the within security in
                                        every particular, without alteration or
                                        enlargement or any change whatever.

                                Signature Guarantee*:
                                                      -------------------------
                                        * Participant in a recognized Signature
                                        Guarantee Medallion Program (or other
                                        signature guarantor acceptable to the
                                        Company).

                                      A-6

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