Document:

<PAGE>

                                                                    EXHIBIT 10.1

                              --------------------
                                OVERALL AGREEMENT
                              --------------------

                                  11 APRIL 2001

                                     between

                       SANTA FE INTERNATIONAL CORPORATION

                                     - and -

                             PPL SHIPYARD PTE. LTD.

<PAGE>

THIS OVERALL AGREEMENT is made on 11 April, 2001,

BETWEEN:

(1)      SANTA FE INTERNATIONAL CORPORATION, organized and existing under the
         laws of the Cayman Islands with offices at 5420 LBJ Freeway, Suite
         1100, Dallas, Texas 75240, U.S.A. ("SFIC"); and

(2)      PPL SHIPYARD PTE. LTD., organized and existing under the laws of
         Singapore, having its principal place of business located at 21 Pandan
         Road, Singapore 609273 (hereinafter called the "Builder").

WHEREAS:

A.       Pursuant to two (2) contracts of even date herewith between SFIC and
         the Builder, each for the construction and sale of one semi-submersible
         drilling unit (collectively the "Contracts"), SFIC and the Builder have
         agreed that the Builder shall design, construct, equip, complete and
         deliver two (2) Friede and Goldman Millennium ExD semi-submersible
         drilling units to bear the Builder's hull numbers P.2003 and P.2004
         (each being referred to herein as a "Vessel" and collectively as the
         "Vessels"); and

B.       The parties hereto desire to enter into a further agreement to
         co-ordinate certain aspects of the performance of the Contracts and to
         provide for the granting by the Builder to SFIC of purchase options in
         respect of two (2) further Friede and Goldman Millennium ExD
         semi-submersible drilling units.

NOW THEREFORE, in consideration of the mutual promises and covenants herein set
forth it is hereby agreed as follows:

1.       DEFINITIONS AND INTERPRETATION

1.1      Terms employed herein shall bear the same meaning as in the Contracts
         and the Specifications (as defined therein).

1.2      In the event of any conflict between the provisions of this Overall
         Agreement and the Contracts, the provisions of this Overall Agreement
         shall prevail.

2.       GRANT OF PURCHASE OPTIONS FOR SUBSEQUENT UNIT(S)

2.1      In consideration of the payment by SFIC to the Builder of the sum of
         Ten United States Dollars (U.S.$10.00), receipt of which is hereby
         acknowledged, the Builder hereby grants to SFIC certain options (herein
         respectively the "Options") to require the Builder to design,
         construct, equip, complete and deliver to SFIC up to two (2) optional
         Friede and Goldman Millennium ExD semi-submersible drilling units (the
         "Option Vessels") as further set out below.

2.2      The Options shall be exercisable, either collectively or individually,
         by SFIC serving a notice or notices on the Builder to such effect on or
         before 5:00 p.m.

                                       1
<PAGE>

         Central Standard/Daylight Time (as applicable) on the applicable Option
         Deadline noted below. The Builder covenants and unconditionally and
         irrevocably undertakes with SFIC that it will forthwith thereupon enter
         into a contract or contracts with SFIC (or any other company nominated
         and guaranteed by SFIC) for the design, construction, equipment,
         completion and delivery to SFIC (or such other company) of such of the
         Option Vessels for which SFIC shall have exercised its option as
         aforesaid.

2.3      The contracts (including contract specifications) in respect of the
         Option Vessels shall be in the same form mutatis mutandis as the
         contract for construction and sale of Builder's Hull No. P.2003 except
         as otherwise expressly stipulated by this Overall Agreement and
         provided that the Option Deadlines, Construction Commencement Dates,
         Contract Prices and Delivery Dates for the same will be as follows:

<Table>
<Caption>

                        SEMI-SUBMERSIBLE       CONSTRUCTION               CONTRACT             DELIVERY
                         OPTION DEADLINE     COMMENCEMENT DATE              PRICE                DATE
                        ----------------     -----------------         ----------------   ----------------------
<S>                     <C>                  <C>                       <C>                <C>
         First          11 May 2004          12 May 2004               U.S.               11 May 2006
         Option Vessel                                                 $91,600,000

         Second         11 November 2005     12 November 2005          U.S.               11 November 2007
         Option Vessel                                                 $91,600,000
</Table>

         The above referenced Delivery Dates shall be accelerated in respect of
         any one or more of the Option Vessels by two (2) months should SFIC so
         elect by giving notice of such election to Builder no later than the
         Construction Commencement Date and shall be accelerated by an
         additional three (3) months (for a total of five (5) months) should
         SFIC so elect by giving notice to Builder no later than three (3)
         months before the Construction Commencement Date, always providing:

         (1)   In the event SFIC gives Builder notice no later than three (3)
               months before the Construction Commencement Date, then SFIC's
               first installment payment of the Contract Price to Builder shall
               be due upon the second banking day next following either the date
               SFIC gave Builder notice or the date of Builder's delivery of the
               performance guarantee (but not the letter of credit) to SFIC as
               required under Article XI, Paragraph 2 of the contract, whichever
               occurs later. Builder will provide the letter of credit to SFIC
               on or before the Construction Commencement Date.

         (2)   In the event SFIC gives Builder notice no later than three (3)
               months before the Construction Commencement Date and SFIC
               subsequently exercises its right to terminate for its convenience
               before the Construction Commencement Date under Article XI,
               Paragraph 4 of the contract, then SFIC shall pay Builder its
               documented third party cancellation costs less any installment
               payments made by SFIC to

                                       2
<PAGE>

               Builder. Should the Installment Payments be greater than the
               cancellation costs, then the balance shall be promptly returned
               to SFIC.

         (3)   The payment reduction specified in Article III, Paragraph 1(c) of
               the contract, shall not apply unless the delivery of the Vessel
               is delayed by more than sixty-one (61) calendar days after the
               Delivery Date in respect of such Vessel.

2.4      Notwithstanding the Option Deadlines, Construction Commencement Dates,
         Contract Prices and Delivery Dates specified in Clause 2.3 above, SFIC
         shall have the right, at its election, exercisable upon submission of
         written notice to Builder by the applicable Option Deadline set forth
         below, to require Builder to commence construction and deliver any one
         or more of the Option Vessels under an Accelerated Schedule as follows:

<Table>
<Caption>

                        SEMI-SUBMERSIBLE      CONSTRUCTION            CONTRACT             DELIVERY
                        OPTION DEADLINE     COMMENCEMENT DATE          PRICE                 DATE
                        ---------------     -----------------         --------             --------
<S>                     <C>                 <C>                      <C>                 <C>
         First          11 November 2003    12 November 2003         U.S.                12 September 2005
         Option Vessel                                               $91,600,000

         Second         11 May 2005         12 May 2005              U.S.                11 March 2007
         Option Vessel                                               $91,600,000
</Table>

         It is agreed between SFIC and Builder that should SFIC so elect the
         Accelerated Schedule, then SFIC will require in total no greater
         security facilities from Builder by way of letters of credit and
         performance guarantees than that which would have been required should
         SFIC have maintained the schedule specified in Clause 2.3. Further,
         under the Accelerated Schedule the payment reduction specified in
         Article III 1(c) of the Contract shall not apply unless the delivery of
         the Vessel is delayed more than sixty-one (61) calendar days after the
         Delivery Date in respect of such Vessel.

2.5      SFIC shall have the right to request Builder to accelerate or delay the
         schedules of any one or more of the Vessels and both parties shall work
         together to achieve the revised schedule, providing that any
         unavoidable additional cost to Builder so arising shall be reimbursed
         by SFIC to Builder on a documented cost basis.

2.6      Irrespective of which schedule SFIC elects, should Builder be in
         default under the terms of the Contracts, or under the terms of Option
         Vessel contracts or should Builder suffer delay (excepting only
         Permissible Delay) which in SFIC's reasonable opinion would adversely
         impact Builder's performance, then SFIC shall have the right, at no
         additional cost to delay the Construction Commencement Date for any
         subsequent Vessel until the default has been remedied or the delay has
         been resolved to SFIC's reasonable satisfaction.

                                       3
<PAGE>

3.       NOTICES

3.1      Every notice given under this Overall Agreement shall be in writing and
         shall be deemed given when delivered personally, by registered or
         certified mail or by facsimile/telefax to the address of the party
         receiving such notice stated below. Any notice sent by telefax shall be
         confirmed by prepaid first class letter posted as soon as practicable
         thereafter but the failure of the addressee to receive such letter
         shall not prejudice the validity or effect of such telefax notice.

3.2      Unless and until SFIC notifies the Builder to the contrary in writing,
         SFIC's address designated for the purpose of notices under this Overall
         Agreement shall be:

         Santa Fe International Corporation
         5420 LBJ Freeway, Suite 1100
         Dallas, Texas 75240 U.S.A.

         Facsimile:        972-701-7390

         Attention:        Mr. N. Pharr Smith

3.3      Unless and until the Builder notifies SFIC to the contrary in writing,
         the Builder's address designated for the purpose of notices under this
         Overall Agreement shall be:

         PPL Shipyard Pte. Ltd.
         21 Pandan Road
         Singapore  609273

         Facsimile: (65) 2644130

         Attention:  Mr. Ong Tian Khiam

4.       GOVERNING LAW & DISPUTE RESOLUTION

4.1      The parties hereto agree that the validity and interpretation of this
         Overall Agreement and of each Clause and part thereof shall be governed
         by English law excluding, however, any of its conflicts of law rules or
         other provisions which may refer to the laws of another jurisdiction.
         Any claim, dispute or difference arising out of this Overall Agreement
         shall be finally resolved in accordance with the provisions of Article
         XVII - Dispute Resolution of the Contracts.

4.2      For the purposes of any proceedings pursuant to Clause 4.1 above, the
         parties hereby irrevocably appoint the following as their agents within
         England for the service of process:

                                       4
<PAGE>

         SFIC

         Simon Curtis
         Curtis Davis Garrard
         Bedfont Cross, Stanwell Road
         Heathrow Airport, Feltham TW14 8NY U.K.

         The Builder

         HFW Nominees Ltd.
         Marlow House
         Lloyds Avenue
         London  EC3N 3AL  U.K.

5.       TERM OF AGREEMENT

This Overall Agreement shall remain effective until expiry of the warranty
period for the last vessel, including any Option Vessel, built by the Builder
for SFIC as contemplated herein unless otherwise mutually agreed in writing.

6.       PUBLICITY RELEASES

The provisions addressing publicity releases contained in Article XXVI of the
Contracts shall be deemed set forth herein mutatis mutandis and shall apply
equally to this Overall Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Overall Agreement to be
duly executed with effect as of the day and year first above written.

SIGNED BY                            )
on behalf of                         )
SANTA FE INTERNATIONAL CORPORATION   )
in the presence of:                  )

SIGNED BY                            )
on behalf of                         )
PPL SHIPYARD PTE. LTD.               )
in the presence of:                  )

                                       5<PAGE>

                                                                    EXHIBIT 10.2

                                    CONTRACT

                                     FOR THE

                              CONSTRUCTION AND SALE

                                      OF A

                         SEMI-SUBMERSIBLE DRILLING UNIT

                                (HULL NO. P.2003)

                                      DATED

                                  11 APRIL 2001

<PAGE>

                                      INDEX
<Table>
<Caption>
ARTICLE       SUBJECT                                                PAGE
-------       -------                                                ----
<S>           <C>                                                    <C>
I             DESCRIPTION AND CLASSIFICATION                          1

II            CONTRACT PRICE AND TERMS OF PAYMENT                     4

III           DELAYS IN PERFORMANCE                                   7

IV            APPROVAL OF PLANS AND DRAWINGS AND
              INSPECTION DURING CONSTRUCTION                          8

V             MODIFICATIONS                                          11

VI            TESTS AND TRIALS                                       14

VII           DELIVERY DATE AND DELIVERY                             16

VIII          FORCE MAJEURE DELAYS                                   21

IX            OWNER FURNISHED EQUIPMENT DELAYS                       22

X             WARRANTY OF QUALITY                                    23

XI            CANCELLATION BY BUYER                                  25

XII           SUSPENSION BY BUYER                                    27

XIII          BUYER'S DEFAULT                                        28

XIV           BUILDER'S DEFAULT                                      31

XV            LIABILITIES AND INDEMNITIES                            33

XVI           INSURANCE                                              35

XVII          DISPUTE RESOLUTION                                     37

XVIII         RIGHTS OF ASSIGNMENT AND VESSEL RECIPIENT
              DESIGNATION                                            38

XIX           TAXES AND DUTIES                                       39

XX            PATENTS, TRADEMARKS, COPYRIGHTS, ETC.                  39
</Table>

<PAGE>

<Table>
<Caption>
ARTICLE       SUBJECT                                                PAGE
-------       -------                                                ----
<S>           <C>                                                    <C>
XXI           ADDRESSES                                              40

XXII          NOTICES AND LANGUAGE                                   41

XXIII         EFFECTIVE DATE OF CONTRACT                             41

XXIV          INTERPRETATION                                         41

XXV           CONFLICT AND AUDIT                                     42

XXVI          PUBLICITY RELEASES                                     44

EXHIBIT "A"   CONTRACT SPECIFICATIONS

EXHIBIT "B"   CONTRACT DRAWINGS LIST

EXHIBIT "C"   HEALTH, SAFETY & ENVIRONMENTAL MANAGEMENT
              SYSTEM REQUIREMENTS

EXHIBIT "D"   SCHEDULE OF LABOR AND MATERIAL RATES

EXHIBIT "E"   PROTOCOL OF DELIVERY AND ACCEPTANCE

EXHIBIT "F"   PERFORMANCE GUARANTEE

EXHIBIT "G"   IRREVOCABLE STAND-BY LETTER OF CREDIT
</Table>

<PAGE>

                    CONTRACT FOR THE CONSTRUCTION AND SALE OF
                        A SEMI-SUBMERSIBLE DRILLING UNIT
                                (HULL NO. P.2003)

THIS CONTRACT, made effective this 11th day of April, 2001 by and between PPL
Shipyard Pte. Ltd., a company organized and existing under the laws of
Singapore, having its principal place of business located at 21 Pandan Road,
Singapore 609273 (hereinafter called the "BUILDER") and Santa Fe International
Corporation, a corporation organized and existing under the laws of the Cayman
Islands, with an office at 5420 LBJ Freeway, Suite 1100, Dallas, Texas 75240,
U.S.A. (hereinafter called the "BUYER" or "OWNER").

                                   WITNESSETH:

         WHEREAS, the BUILDER agrees to furnish all necessary labor and
materials to design, construct, equip, complete and test, at its nominated
shipyard located at Tanjong Kling, Singapore (hereinafter called the "Shipyard")
and sell and deliver afloat at the Shipyard to the BUYER one (1) Friede and
Goldman Millennium ExD semi-submersible drilling unit more fully described in
Article I hereof (hereinafter called the "VESSEL); and

         WHEREAS, the BUYER agrees to purchase and accept delivery of the VESSEL
at the Shipyard from the BUILDER and to pay for the same, all upon the terms and
conditions hereinafter set forth.

         NOW, THEREFORE, undertaking to perform each party's responsibilities
and to exercise each party's rights with good faith in interpreting this
Contract and the Specifications, the parties hereby agree, in consideration of
the mutual promises and covenants hereinafter contained, as follows:

                   ARTICLE I - DESCRIPTION AND CLASSIFICATION

1.       Description:

         The VESSEL shall have the BUILDER's Hull No. P.2003 and shall be
designed, constructed, equipped and completed in accordance with the provisions
of (i) this Contract, and (ii) the Contract Specifications attached to this
Contract as Exhibit "A" and the Contract Drawings attached to this Contract as
listed in Exhibit "B" (herein collectively called the "Specifications") signed
by each of the parties hereto for identification on even date herewith and
incorporated by reference and made an integral part hereof.

2.       Dimensions and Characteristics:

         The VESSEL is a Friede and Goldman Millennium ExD semi-submersible
drilling unit which will bear BUILDER's Hull No. P.2003 of approximate
dimensions 98.82

                                                                               1
<PAGE>

metres long, 78.68 metres wide and 36.0 metres in height from the keel to main
deck level. The details of the above particulars as well as the definitions and
method of measurements and calculations are as indicated in the Specifications.

3.       Classification, Rules and Regulations:

         The VESSEL (including its machinery, equipment and outfitting) shall to
the BUYER's reasonable satisfaction be constructed in accordance with good
shipbuilding practices and with the American Bureau of Shipping's, (herein
called the "Classification Society") Rules for Building and Classing Mobile
Offshore Drilling Units (the edition and amendments thereto being in force as of
the date of this Contract), the IMO MODU Code 1989, and other such specific
requirements as are set out in this Contract and the Specifications. Decisions
of the Classification Society as to compliance or non-compliance with the
Classification shall be final and binding upon both parties hereto.

         The VESSEL shall also meet all requirements of the rules, regulations
and requirements of the International Loadline Convention and other regulatory
bodies as described in the Specifications in effect as of the date of this
Contract. All fees and charges incidental to the classification and with respect
to meeting the requirements of the above-referenced rules, regulations and
requirements, as well as design fees and/or royalties shall be for the account
of BUILDER.

         The BUILDER shall perform its services pursuant to this Contract in
accordance with the HSEMS requirements set forth in Exhibit "C".

4.       Registration:

         The VESSEL shall be registered by the BUYER at its own cost and expense
under the laws of the Republic of Vanuatu with its home port at Port Vila, or
such other place as the BUYER shall designate at the time of its delivery and
acceptance hereunder. In addition, the BUYER reserves the right, at its sole
discretion, to register the VESSEL under construction at its own cost and
expense under the Laws of the Republic of Vanuatu or such other place as the
BUYER may deem appropriate, at any time following payment of the first
installment of the Contract Price.

5.       Subcontracting:

         The BUILDER may, with BUYER's written approval, which shall not be
unreasonably withheld, at its sole discretion and responsibility subcontract any
portion of the construction work of the VESSEL which is to be performed within
the Republic of Singapore. Subject to BUYER's written approval, the BUILDER may,
at its sole discretion and responsibility, subcontract any portion of the
construction work of the VESSEL which is to be performed outside the Republic of
Singapore. In any event, BUILDER shall retain full responsibility and liability
as if it did the work itself for any subcontracted work, including warranties,
guarantees and schedule.

6.       Permits and Observance of Applicable Laws:

                                                                               2
<PAGE>

         BUILDER warrants that it is duly authorized with all applicable
licenses (including but not limited to those required in respect of the Friede
and Goldman Millennium ExD design) to construct, equip, complete, sell and
perform the entirety of the work covered hereby and to deliver the VESSEL as
provided for herein and that it will obtain in a timely manner all necessary
permits, licenses, and authorizations required for performing such work and
making such delivery. BUILDER further warrants that it and all of its
subcontractors will observe all applicable laws, orders, decrees, ordinances,
rules and regulations of the country of construction and of its subdivisions and
all duly constituted government agencies having jurisdiction.

7.       Design Responsibilities

         It is expressly agreed and understood that the BUILDER shall be
exclusively responsible for all aspects of the design and engineering required
in respect of the construction, equipment and completion of the VESSEL in
accordance with the provisions of this Contract and the Specifications. The
BUILDER shall accordingly be responsible for any additional costs and expenses
of construction, equipment and completion of the VESSEL beyond those originally
envisaged at the time of signature hereof which result from any deficiency or
shortcoming in the Friede and Goldman Millennium ExD design or any design or
engineering undertaken to develop the same for the purposes of performance of
this Contract.

         It is further expressly agreed that the BUILDER shall be responsible
for delivering to the BUYER a semi-submersible vessel that has a variable deck
load of at least seven thousand (7,000) metric tonnes at the operating draft, a
variable deck load of at least seven thousand (7,000) metric tonnes at the
survival draft and a total payload of at least six thousand (6,000) metric
tonnes with 0.4 meters freeboard on the pontoons at the transit draft, all as
defined in Section 2.5 of the Specifications. If, after VESSEL inclining, the
weight and center of gravity are such that these figures are not achievable, the
BUILDER shall make whatever modifications to the VESSEL are necessary to provide
the completed VESSEL with these variable deck load and transit payload figures.
Such modifications could include the addition of faired sponsons to the pontoons
and/or the stability columns.

         However the variable loads required in the preceding paragraph may be
reduced if any of the following conditions are met:

         o        An item of Owner Furnished Equipment (OFE) is found to be
                  heavier than the weight contained in the OFE list included in
                  the Contract Specifications.

         o        The weight of the Well Activity Centre(TM) (WAC(TM)) as
                  designed by Hydralift is greater than weight of the WAC(TM)
                  calculated by Friede & Goldman.

         o        The review of the global structural analysis by ABS requires
                  additional steel to be incorporated into the design (note any
                  such additional steel will have no impact on the Contract
                  Price).

                                                                               3
<PAGE>

         The reduction in Payload at the transit draft shall be equal to the
increase in weight brought about by any of the above. The reduction in variable
deck load at operating and survival drafts shall be the amount of payload at one
meter above the maindeck that must be replaced by ballast water at the mid depth
of the pontoon in order to maintain the vertical center of gravity of the VESSEL
on the required KG curve as a result of the increase in weight brought about by
any of the above.

         Further, the environmental ratings contained in Section 1.5 of the
Specifications may be amended by official letter from ABS following their
detailed review of the design. Such amendments, if any, will be deemed to be
retroactively incorporated into Section 1.5 of the Specifications.

8. Notwithstanding any other provision of this Contract, specifically including
but not limited to the Effective Date as defined in Article XXIII, BUILDER shall
not commence construction of the VESSEL under this Contract prior to 12 May 2001
(the "Construction Commencement Date").

                ARTICLE II - CONTRACT PRICE AND TERMS OF PAYMENT

1.       Contract Price:

         The contract price of the VESSEL is Eighty-Seven Million One Hundred
Eighty Thousand United States Dollars (U.S.$ 87,180,000), receivable by the
BUILDER (herein called the "Contract Price"), subject to upward or downward
adjustment, if any, as set forth in this Contract.

2.       Currency:

         Any and all payments required to be made by either party under this
Contract shall be made in United States Dollars. Payments required to be made by
BUYER to BUILDER shall be made as follows:

                                    Citibank N.A., New York
`                                   For Account Citibank N.A., Singapore
                                    Favoring:  PPL Shipyard Pte. Ltd.
                                    USD Account Number:  0-812872-028

3.       Terms of Payment:

         The Contract Price shall be paid by the BUYER to the BUILDER in
installments as follows:

(a)      1st Installment:

                                                                               4
<PAGE>

         The sum of Eight Million Seven Hundred Eighteen Thousand United States
         Dollars (U.S.$8,718,000), equivalent to ten percent (10%) of the
         Contract Price shall be paid upon the second banking day next following
         the Construction Commencement Date or BUILDER's delivery of the
         irrevocable standby letter of credit to the BUYER as required under
         Article XI, Paragraph 2, whichever occurs later.

(b)      2nd Installment:

         The sum of Thirteen Million Seventy-Seven Thousand United States
         Dollars (U.S.$13,077,000), equivalent to fifteen percent (15%) of the
         Contract Price shall be paid upon the second banking day next following
         the completion of the detailed engineering of the VESSEL, which shall
         be deemed to require completion of specific, yet to be mutually agreed,
         tasks.

(c)      3rd Installment

         The sum of Eight Million Seven Hundred Eighteen Thousand United States
         Dollars (U.S.$8,718,000), equivalent to ten percent (10%) of the
         Contract Price shall be paid upon the second banking day next following
         completion of the fabrication of steel for the pontoons, columns and
         upper hull of the VESSEL, which shall be deemed to require completion
         of specific, yet to be mutually agreed, tasks.

(d)      4th Installment

         The sum of Eight Million Seven Hundred Eighteen Thousand United States
         Dollars (U.S.$8,718,000), equivalent to ten percent (10%) of the
         Contract Price shall be paid upon the second banking day next following
         the mechanical completion of the Well Activity Center of the VESSEL,
         which shall be deemed to require completion of specific, yet to be
         mutually agreed, tasks.

(e)      5th Installment

         The sum of Eight Million Seven Hundred Eighteen Thousand United States
         Dollars (U.S.$8,718,000), equivalent to ten percent (10%) of the
         Contract Price shall be paid upon the second banking day next following
         the mechanical completion of the pontoons, columns and upper hull of
         the VESSEL, which shall be deemed to require completion of specific,
         yet to be mutually agreed, tasks.

 (f)     6th Installment

         The sum of Eight Million Seven Hundred Eighteen Thousand United States
         Dollars (U.S.$8,718,000), equivalent to ten percent (10%) of the
         Contract Price, shall be paid upon the second banking day next
         following completion of the power generation system of the VESSEL,
         which shall be deemed to require completion of specific, yet to be
         mutually agreed, tasks.

                                                                               5
<PAGE>

(g)      7th Installment

         The sum of Thirteen Million Seventy-Seven Thousand United States
         Dollars (U.S.$13,077,000), equivalent to fifteen percent (15%) of the
         Contract Price, shall be paid upon the second banking day next
         following completion of the commissioning of the Well Activity Center
         of the VESSEL, which shall be deemed to require completion of specific,
         yet to be mutually agreed, tasks.

(h)      8th Installment

         The sum of Eight Million Seven Hundred Eighteen Thousand United States
         Dollars (U.S.$8,718,000), equivalent to ten percent (10%) of the
         Contract Price, shall be paid upon the second banking day next
         following completion of the hotel facilities of the VESSEL, which shall
         be deemed to require completion of specific, yet to be mutually agreed,
         tasks.

(i)      9th Installment

         The sum of Eight Million Seven Hundred Eighteen Thousand United States
         Dollars (U.S.$8,718,000), equivalent to ten percent (10%) of the
         Contract Price, plus any increase or minus any decrease due to
         adjustments of the Contract Price hereunder, shall be paid upon the
         second banking day next following completion of all trials and
         punchlists, issuance of all classification documents and completion of
         all tasks necessary to make the VESSEL ready for ocean or dry tow,
         which shall be deemed to require completion of specific, yet to be
         mutually agreed, tasks,

         and execution by the parties of the PROTOCOL OF DELIVERY AND ACCEPTANCE
         pursuant to Article VII (2) hereof.

         For purposes of implementing each of the above-described payment
milestone events, they shall not be deemed to have been attained until such time
as all tasks and activities that precede such milestone as described on the
BUILDER's Construction Schedule have been fully completed.

         Notwithstanding the foregoing, BUYER's obligation to make payment of
the second (2nd) and subsequent installments shall be subject to the parties
having reached written agreement on the detailed tasks and activities to be
completed in association with each of the remaining installment payments. Such
tasks and activities shall relate to BUYER's approved version of the BUILDER's
Construction Schedule.

         As used herein, the term "banking day" shall mean any day in which
commercial banks are open for business in Texas or New York and Singapore.

         At least two (2) banking days in advance of the due date of each
installment payment, BUILDER shall give both the BUYER and the BUYER's
Representative written notice by facsimile or registered mail. Each installment
notice shall state: (i)

                                                                               6
<PAGE>

the stage of work achieved as defined by the BUILDER's Construction Schedule as
defined in Article IV, Paragraph 1(c); (ii) that the work completed complies
with the Plans, Specifications and this Contract; and (iii) that there are no
liens or claims upon the VESSEL. Each installment notice shall be executed by an
officer of the BUILDER. If BUILDER has any outstanding liens on the VESSEL,
BUYER shall not be obligated to make such payments until the liens are resolved.

                       ARTICLE III - DELAYS IN PERFORMANCE

1.       Delivery:

(a)      If any delay in construction of the VESSEL, excepting only Permissible
         Delays, should continue for a period of one hundred eighty (180)
         calendar days during construction (as determined by reference to the
         BUILDER's Construction Schedule defined in Article IV, Paragraph 1(c)),
         then in such event, the BUYER may at its option cancel this Contract at
         any time thereafter in accordance with the provisions of Article XI
         hereof. The BUILDER may, at any time after the expiration of the
         aforementioned one hundred eighty (180) calendar days of delay during
         construction, if the BUYER has not served notice of cancellation as
         provided in Article XI hereof, demand in writing that the BUYER shall
         make an election, in which case the BUYER shall, within thirty (30)
         calendar days after such demand is delivered to the BUYER, notify the
         BUILDER of its intention either to cancel this Contract or to consent
         to the acceptance of the VESSEL at an agreed future date; it being
         understood by the parties hereto that, if the VESSEL is not delivered
         by such future date or if construction is again delayed for one hundred
         eighty (180) calendar days or more (as determined by reference to the
         BUILDER's Construction Schedule defined at Article IV, Paragraph 1(c)),
         the BUYER shall have the same right of cancellation upon the same terms
         and conditions as hereinabove provided.

(b)      If the VESSEL is not delivered by the thirty-first (31st) calendar day
         after the Delivery Date (as such term is defined in Article VII,
         Paragraph 1(a)) for any reason, excepting only force majeure delays (as
         defined in Article VIII) and Permissible Delays as defined in Paragraph
         2, below, then in such event, the BUYER may at its option cancel this
         Contract at any time thereafter in accordance with the provisions of
         Article XI hereof.

(c)      If delivery of the VESSEL is delayed more than thirty-one (31) calendar
         days after the Delivery Date as defined in Article VII below, then, in
         such event, beginning at twelve o'clock midnight of the thirty-first
         (31st) calendar day after the Delivery Date, the amount otherwise due
         as the final installment shall be reduced by deducting therefrom the
         sum of Seventy-Five Thousand United States Dollars (U.S.$ 75,000) per
         calendar day, provided that the amount of such reduction shall not
         exceed five percent (5%) of the Contract Price, including any change
         orders. In the event the amount of reduction as aforesaid

                                                                               7
<PAGE>

         exceeds the sum due as the final installment, the excess portion shall
         be paid to BUYER by BUILDER on the actual delivery date of the VESSEL
         by BUILDER to BUYER (it being understood by both parties that any such
         reduction of payment by BUYER is by way of liquidated damages and not
         by way of penalty).

2.       Definition of Permissible Delay:

         Only such delays as are specifically defined in Article V, Paragraphs
1, 2 and 3, Article VI, Paragraph 2, Article IX, Article XII, Paragraph 2, and
Article XIII, Paragraph 1 of this Contract shall be "Permissible Delays".
Notwithstanding any provision to the contrary in this Contract, if any
Permissible Delay would not have come about but for the prolongation of the work
of construction due to any previous unauthorized delays (or accumulation
thereof), then the latter delay shall not be deemed to be a Permissible Delay.

3.       Effect of Cancellation:

         It is expressly understood and agreed by the parties hereto that in any
case, if the BUYER cancels this Contract under this Article, the BUYER shall not
be entitled to any liquidated damages.

                   ARTICLE IV - APPROVAL OF PLANS AND DRAWINGS
                       AND INSPECTION DURING CONSTRUCTION

1.       Approval of Plans, Drawings and BUILDER's Construction Schedule:

(a)      The BUILDER shall submit to either the BUYER or its Representative (as
         defined in Article IV, Paragraph 2) four (4) copies each of the plans
         and drawings for BUYER's approval. The BUILDER shall simultaneously
         submit to the Classification Society and other applicable agencies the
         plans and drawings which require their approval. The BUYER or its
         Representative shall, within ten (10) working days after receipt
         thereof, return to the BUILDER one (1) copy of such plans and drawings
         with the BUYER's approval or comments, if any, written thereon. If
         comments are received the BUILDER shall modify the plans and drawings
         in accordance with the BUYER's comments and resubmit same to the BUYER.
         Final approval or additional comments for such revised plans or
         drawings must be given within ten (10) working days after receipt by
         the BUYER or its Representative of the BUILDER's revised plans and
         drawings. A list of the plans and drawings to be submitted to the BUYER
         or its Representative by BUILDER, as aforesaid, and a schedule for
         submission of plans and drawings to BUYER for approval shall be
         mutually agreed upon between the parties hereto within thirty (30)
         calendar days of the Construction Commencement Date.

(b)      When and if the BUYER's Representative shall have arrived at the
         Shipyard in accordance with Paragraph 2 of this Article, the BUILDER
         may submit the remainder, if any, of the plans and drawings in the
         agreed list in accordance with

                                                                               8
<PAGE>

         the agreed schedule, to the Representative for his approval upon mutual
         written agreement between the parties hereto. The Representative shall,
         within ten (10) working days after receipt thereof, return to the
         BUILDER one (1) copy of such plans and drawings with his approval or
         comments, if any, written thereon. Approval by the Representative of
         the plans and drawings duly submitted to him shall be deemed to be
         approved by the BUYER for all purposes of this Contract.

(c)      The BUILDER shall, within thirty (30) calendar days after the
         Construction Commencement Date, furnish the BUYER or the Representative
         a detailed key event construction schedule showing planned construction
         progress of the VESSEL. After approval of the construction schedule by
         the BUYER or the Representative within ten (10) working days after
         receipt thereof, the construction schedule (herein called either the
         "BUILDER's Construction Schedule" or the "Production Construction
         Schedule") shall be the basis of interpretation of actual construction
         progress of the VESSEL. The Construction Schedule may be amended by
         mutual written agreement by BUILDER and BUYER.

(d)      BUYER's approval as aforesaid shall not serve to eliminate or reduce
         the obligations of the BUILDER elsewhere contained in this Contract.

2.       Appointment of BUYER's Representative:

         The BUYER may send to and maintain at the Shipyard, at the BUYER's own
cost and expense, a representative (herein called the "Representative"). BUYER
shall provide BUILDER with a separate written authorization describing the scope
of authority of such Representative to act on behalf of the BUYER in connection
with this Contract. The Representative and his assistant(s) shall at all times
be deemed to be employees of the BUYER and not of the BUILDER.

3.       Inspection by Representative:

         The necessary inspection of the VESSEL shall be carried out by the
BUYER's Representative, the Classification Society, other regulatory bodies and
the inspection team of the BUILDER throughout the entire period of construction,
in order to ensure that construction of the VESSEL is duly performed in
accordance with this Contract and the Specifications. During construction of the
VESSEL the Representative shall have the right to inspect all work in process,
wherever in the BUILDER's facilities, or any of BUILDER's subcontractors'
facilities, and to attend all tests and inspections of the VESSEL. The BUILDER's
quality inspection organization shall not report directly to BUILDER's
engineering or production organizations, and shall have a direct line of
responsibility to BUILDER's executive management.

         The BUILDER shall give notice to the Representative at least one
working day (24 hours) in advance of the date and place of such tests and
inspections to be attended by him. Failure of the Representative to be present
at such tests and inspections, without justifiable reason, after due notice to
him as above provided shall be deemed to be a waiver of his right to be present.
In such case, the BUYER shall be

                                                                               9
<PAGE>

obligated to accept the results of such tests or inspections on the basis of the
BUILDER's certificate, subject to any required approval of the Classification
Society. Notwithstanding any provision to the contrary in this Contract, the
presence or absence of BUYER's Representative from any such tests or inspections
shall not serve to eliminate or reduce the obligations of the BUILDER elsewhere
contained in this Contract.

         In the event that the Representative discovers any construction or
material or workmanship which is not deemed to conform to the requirements of
this Contract and/or the Specifications, the Representative shall promptly give
the BUILDER notice in accordance with Article XXII as to such nonconformity.
Upon receipt of such notice from the Representative, the BUILDER shall promptly
correct such nonconformity. In all working hours during the construction of the
VESSEL until delivery thereof, the Representative and his assistants shall be
given free and ready access to the VESSEL, its equipment and accessories, and to
any other place where work is being done or materials are being processed or
stored in connection with the construction of the VESSEL, including the yards,
workshops, stores and offices of the BUILDER, and the premises of subcontractors
of the BUILDER who are doing work or storing materials in connection with the
VESSEL's construction.

         If the BUILDER's Quality Assurance and Quality Control is found to miss
a number of major discrepancies during the construction, the BUYER may as it may
deem appropriate supplement the Quality Control coverage by contracting for an
independent service. BUILDER shall be obligated to pay for all costs for the
third party services and shall make necessary corrections or repairs to the
construction for discrepancies discovered by the independent third party as if
the discrepancies were found by BUILDER's own Quality Assurance and Quality
Control organization.

4.       Facilities:

         The BUILDER shall furnish, at BUILDER's expense and free of charge to
BUYER, the Representative and his assistant(s) with adequate office space and
such other reasonable facilities according to the Specifications in the Shipyard
as may be necessary to enable them to effectively carry out their duties.

5.       Responsibility of BUYER:

         The BUYER's Representative shall carry out his duties hereunder in
accordance with good shipbuilding practice and in such a way as to avoid any
unnecessary increase in building cost or delay in the BUILDER's Construction
Schedule.

         The BUYER has the right to request that BUILDER replace any employee or
subcontractor who is deemed unsuitable and unsatisfactory for the proper
progress of the VESSEL's construction. The BUILDER shall promptly effect such
replacement.

6.       Key Personnel:

                                                                              10
<PAGE>

         All Key Personnel of BUILDER who are assigned to the design,
procurement and construction of the VESSEL shall have experience on BUILDER'S
prior new build drilling units, or they shall have prior construction experience
on similar drilling units. In addition BUILDER agrees not to replace previously
accepted Key Personnel without the prior written consent of BUYER, which will
not be unreasonably withheld. Key Personnel shall be defined as engineering and
supervisory personnel of the level of foreman and above.

                            ARTICLE V - MODIFICATIONS

1.       Modification of Specifications:

         Within thirty-four (34) calendar days of the Construction Commencement
Date, the Specifications may be modified and/or changed by BUYER as respects
machinery arrangements and/or systems installations without altering the
Contract Price or the Delivery Date if such modifications or changes do not
necessitate structural changes.

         The Specifications may also be otherwise modified and/or changed at any
time by written agreement of the parties hereto, provided, that the BUYER and
the BUILDER shall first agree to alterations in the Contract Price and the
Delivery Date, if any, occasioned by or resulting from such modifications and/or
changes. Any such alterations in the Delivery Date as may be mutually agreed in
writing shall be understood to be Permissible Delays as contemplated by Article
III, Paragraph 2. In the event the parties are unable to agree upon such
alteration, if any, to the Contract Price or the Delivery Date, BUILDER shall
proceed with such modification or change and any area of disagreement that
cannot subsequently be resolved between BUILDER and BUYER shall be resolved in
accordance with Paragraph 4 of this Article. Within fifteen (15) calendar days
of BUYER's notification to BUILDER to proceed with modifications or changes to
the Specifications, BUILDER shall notify BUYER in writing of any such
modifications or changes that will have an impact on the Contract Price and/or
the Delivery Date or which otherwise would require issuance of a Change Order to
this Contract, including complete details of the nature of such impact. Failure
of BUILDER to so notify BUYER shall be deemed a waiver of BUILDER's right to
subsequently claim for any change in the Contract Price or the Delivery Date or
issuance of any Change Order associated with such modifications or changes.

         Such agreement shall be effected by exchange of letters signed by the
authorized representatives of the parties hereto, which shall constitute
amendments to this Contract and/or Specifications.

         The BUILDER may make minor changes to the Specifications, if found
necessary for introduction of improved production methods or otherwise, provided
that the BUILDER shall first obtain the BUYER's written approval thereof.

2.       Change in Class, etc.:

                                                                              11
<PAGE>

         In the event that, after the Construction Commencement Date of the
first Millennium ExD semi-submersible drilling unit to be constructed by BUILDER
for BUYER, any requirements as to Class, or as to rules and regulations to which
the construction of the VESSEL is required to conform are altered or changed by
the Classification Society or other regulatory bodies authorized to make such
alterations or changes, then either of the parties hereto, upon receipt of such
information from the Classification Society or such other regulatory bodies,
shall promptly transmit the same to the other in writing, and the BUILDER shall
thereupon incorporate such alterations or changes into the construction of the
VESSEL. Any alterations in the Delivery Date as may be mutually agreed in
writing as a result of such changes shall be understood to be Permissible Delays
as contemplated by Article III, Paragraph 2. However, in the event the parties
are unable to agree upon any adjustment to the Contract Price or the Delivery
Date, BUILDER shall proceed with such alterations and/or changes, as aforesaid,
and any area of disagreement that cannot subsequently be resolved between BUYER
and BUILDER shall be resolved in accordance with Paragraph 4 of this Article.

3.       Changes and/or Modifications on a Time and Material Basis:

         In the event the parties agree in writing that any changes,
modifications or alterations are to result in an adjustment of the Contract
Price on a time and materials basis, the labor and material rates applicable
thereto shall be as specified in Exhibit "D" and any change in schedule as may
be agreed in writing shall be understood to constitute Permissible Delays as
contemplated in Article III, Paragraph 2.

         Documentation of Reimbursable Costs:

         The following documentation for reimbursable costs is required to be
         submitted with all invoices:

         1.       All labor charges must be supported by original time sheets
                  submitted with BUILDER's invoice.

         2.       The time sheet shall include at a minimum the following
                  information: date Work was performed; name of employee; hours
                  worked; pay classification of worker; and work order number or
                  other reference to the specific work performed on BUYER's
                  behalf.

         3.       Original time sheet shall be signed by a field representative
                  of BUYER. Time sheets without field approval shall be subject
                  to non-reimbursement by BUYER, at BUYER's discretion.

         4.       Materials purchased from third parties shall be supported by
                  the original third party invoice.

                                                                              12
<PAGE>

         5.       Invoice shall have a copy of the check on which the payment
                  was made, or a reference to the check number or other
                  identifying reference if paid by another method, such as wire
                  transfer.

         6.       Amounts reimbursed shall be net of any discounts or rebates
                  received by BUILDER.

         7.       Invoices for items purchased from companies affiliated with
                  BUILDER shall be so identified.

         8.       Unit prices shall be supported by quantity reports signed by
                  BUYER's representative indicating the units (quantity) or Work
                  performed/provided to which the unit prices apply.

4.       Disputes Concerning Changes or Modifications:

         In the event BUYER desires to implement any modifications, changes or
alterations as contemplated under Paragraphs 1, 2 or 3 of this Article and the
parties are unable to agree upon the adjustment in the Contract Price and/or
Delivery Date, if any, BUYER may elect to instruct BUILDER in writing to proceed
with such modifications, changes or alterations and the BUILDER shall promptly
comply with such instruction. In connection with change orders as to which the
parties are unable to agree, BUYER shall have the right to audit at its expense,
either by representative confirmation or original documents, such as time and
material records, or by independent public accountant (or both) all of BUILDER's
records in connection with charges and process of construction. The
determination of the adjustment in the Contract Price and/or Delivery Date
associated with any such alterations and changes which are performed shall, as
respects the areas of disagreement between the parties, be submitted for final
resolution in accordance with Article XVII hereof. Without prejudice to
Paragraph 1, above, in the event BUILDER and BUYER have not reached agreement by
the Delivery Date upon the adjustment in the Contract Price then any disputed
amount(s) shall be deposited by BUYER in a mutually agreed joint interest
bearing account for BUYER and BUILDER until resolution of such disputed
amount(s). Interest on the principal amount shall be distributed between the
parties in proportion to the amount of principal received upon resolution of the
dispute(s).

5.       Substitution of Materials:

         In the event that any of the materials required by the Specifications
or otherwise under this Contract for the construction of the VESSEL cannot be
procured in time to maintain the Delivery Date of the VESSEL, the BUILDER may,
provided that the BUYER so agrees in writing, supply other materials capable of
meeting the requirements of the Classification Society and of the rules,
regulations and requirements with which the construction of the VESSEL must
comply. Any agreement as to such substitution of materials shall be effected in
the manner provided in Paragraph 1 of this Article, and may, likewise, include
alterations in the Contract Price and other terms and conditions of this
Contract occasioned by or resulting from such substitution.

                                                                              13
<PAGE>

                          ARTICLE VI - TESTS AND TRIALS

1.       Notices:

         The BUILDER shall provide the BUYER at least thirty (30) days prior
notice in accordance with Article XXII of the time and place of each of the sea
trials, equipment trials, and other specified commissioning which is to be
performed at BUILDER's Shipyard (collectively herein referred to as the "Tests
and Trials") of the VESSEL, and the BUYER shall promptly acknowledge receipt of
such notice(s). The BUYER shall have its Representative on board the VESSEL to
witness such Tests and Trials. Failure by the Representative of the BUYER to
attend any portion of the Tests and Trials of the VESSEL after due notice to the
BUYER as provided above shall be deemed to be a waiver by the BUYER of its right
to have its Representative on board the VESSEL at such portion of the Tests and
Trials, and the BUILDER may conduct such portion of the Tests and Trials without
the Representative of the BUYER being present, and in such case the BUYER shall
be obligated to accept the VESSEL on the basis of certificates of the BUILDER
and the Classification Society Surveyor that the VESSEL, upon completion of such
portion of the Tests and Trials, is found to conform to this Contract and the
Specifications with respect to such portion of the Tests and Trials.

2.       Weather Conditions:

         The Tests and Trials shall be carried out under weather conditions
deemed favorable enough in the judgment of the Classification Society Surveyor.
In the event of unfavorable weather on the date(s) specified for the Tests and
Trials, the same shall take place on the first available day thereafter that
weather conditions permit. It is agreed that if during the Tests and Trials of
the VESSEL, the weather should suddenly become so unfavorable that orderly
conduct of the Tests and Trials can no longer be continued in the opinion of the
Classification Society Surveyor, the Tests and Trials shall be discontinued and
postponed until the first favorable weather condition day next following, unless
the BUYER agrees in writing to accept the VESSEL on the basis of the Tests and
Trials already made before such discontinuance occurred.

         Any delay of the Tests and Trials caused by such unfavorable weather
conditions shall operate to postpone the Delivery Date by the period of delay
involved and such delay shall be understood to constitute Permissible Delays as
contemplated in Article III, Paragraph 2.

3.       How Conducted:

         All expenses in connection with the Tests and Trials, including, but
not limited to fuel oil, lubricating oils and greases (the quality and quantity
of which shall be in accordance with applicable engine specifications) shall be
for the account of the BUILDER, and the BUILDER shall provide at its own expense
the necessary crew to

                                                                              14
<PAGE>

comply with conditions of safe navigation. The Tests and Trials shall be
conducted in the manner prescribed in the Specifications, and shall prove
fulfillment of the performance requirements for the Tests and Trials as set
forth in the Specifications. The course of Tests and Trials shall be determined
by the BUILDER.

4.       Method of Acceptance or Rejection:

(a)      Upon completion of the Tests and Trials, the BUILDER shall give the
         BUYER notice in accordance with Article XXII of completion of the Tests
         and Trials, as and if the BUILDER considers that the results of the
         Tests and Trials indicate conformity of the VESSEL to this Contract and
         the Specifications in all respects. The BUYER shall, within three (3)
         business days after receipt of such notice from the BUILDER, notify the
         BUILDER in accordance with Article XXII of its acceptance or rejection
         of the VESSEL.

(b)      However, should the results of the Tests and Trials indicate that the
         VESSEL, or any part or equipment thereof, does not fully conform to the
         requirements of this Contract and/or the Specifications, then the
         BUILDER shall promptly take the necessary steps to correct such
         nonconformity. Upon completion of correction of such nonconformity, the
         BUYER may request a second round of Tests and Trials to test the
         nonconformity correction, and in such event the BUILDER shall give the
         BUYER not less than three (3) business days prior notice in accordance
         with Article XXII of the second round of Tests and Trials of the
         VESSEL. Upon successful completion of the second round of Tests and
         Trials, the BUYER shall within three (3) business days after receipt of
         such notice from the BUILDER, notify the BUILDER in accordance with
         Article XXII of its acceptance or rejection of the VESSEL. Any
         additional cost for fuel, oils and greases required for the second, or
         subsequent, round of Tests and Trials shall be for BUILDER's account.

(c)      In the event that the BUYER rejects the VESSEL, the BUYER shall
         indicate in its notice of rejection in what respect the VESSEL, or any
         part or equipment thereof, does not conform to this Contract and/or the
         Specifications.

(d)      The BUILDER may dispute the rejection of the VESSEL by the BUYER under
         this Paragraph, in which case the matter shall be submitted for final
         resolution in accordance with Article XVII hereof.

5.       Effect of Acceptance:

         Acceptance of the VESSEL as provided above shall be final and binding
and shall preclude the BUYER from refusing tender of delivery of the VESSEL as
hereinafter provided, if the BUILDER complies with all procedural requirements
for delivery as provided in Article VII hereof.

6.       Disposition of Surplus Consumable Stores:

                                                                              15
<PAGE>

         Should any consumable stores furnished by the BUILDER for the Tests and
Trials remain on board the VESSEL at the time of acceptance thereof by the
BUYER, the BUYER agrees to buy the same from the BUILDER at the original
documented purchase price thereof, and payment by the BUYER shall be effected
within thirty (30) days of receipt from BUILDER of an invoice and supporting
documentation therefore.

7.       Installation and Commissioning of OWNER Furnished Equipment:

         The BUILDER is required to deliver to the BUYER a complete fully
 functioning drilling unit that meets all of the provisions of this Contract and
 the Specifications. All equipment shall be installed in the VESSEL and fully
 commissioned and tested by the BUILDER according to the requirements of this
 Contract, the Specifications and the manufacturers of all of the OFE and the
 BUILDER Furnished Equipment ("BFE"). The OFE and BFE shall be installed by the
 BUILDER no later than the times called for in the Construction Schedule. The
 Construction Schedule shall be agreed between the BUILDER and the BUYER as
 called for in the Contract and shall be structured such that there is
 sufficient time after installation of all equipment for hook up, commissioning
 and testing. The BUILDER shall be responsible for arranging and conducting all
 hook up, commissioning and testing activities. Notwithstanding the provisions
 of this Paragraph, it is recognized that the BUYER has specific responsibility
 for the following:

         O        To arrange for and pay for the attendance during hook up,
                  commissioning and testing activities of the appropriate
                  manufacturers representatives.

         O        To work with the BUILDER during the development of the
                  commissioning and testing plan and schedule.

         O        To provide on site resources during hook up, testing and
                  commissioning activities to assist the BUILDER particularly
                  with equipment with which he is not familiar.

         It is also specifically recognized that non-performance of OFE after it
has been properly installed and tested according to the manufacturers
recommendations and the agreed Construction Schedule shall not be grounds for
the assertion by the BUYER of default by the BUILDER.

                    ARTICLE VII - DELIVERY DATE AND DELIVERY

1.       Time and Place:

(a)      Delivery Date and Place:

         The VESSEL shall be delivered by the BUILDER to the BUYER safely afloat
         secured alongside the wharf at BUILDER's Shipyard or another mutually
         agreed location ready for ocean tow or loadout for dry tow as approved
         by the BUYER's

                                                                              16
<PAGE>

         underwriters' surveyors following completion of the procedures
         addressing Tests and Trials in Article VI on or before 11 October 2003
         provided, however, that in the event of Permissible Delays as
         contemplated by Article III, Paragraph 2, or delays due to force
         majeure (as defined in Article VIII), the aforementioned date for
         delivery of the VESSEL shall be postponed accordingly. The
         aforementioned date, or such later date to which the requirement of
         delivery is postponed pursuant to such terms, is herein called the
         "Delivery Date". Notwithstanding the foregoing, BUYER shall not be
         obligated to accept delivery of the VESSEL more than fifteen (15)
         calendar days prior to the Delivery Date unless otherwise mutually
         agreed in writing.

         At the BUYER's option, the BUILDER shall remove and safely seafasten on
         the VESSEL's main deck, all eight (8) of the VESSEL's DP thrusters in
         preparation for the ocean tow or loadout for dry tow as approved by the
         BUYER's underwriters' surveyor. If the BUYER exercises such option, the
         Contract Price shall be increased by Two Hundred and Fifty Thousand
         United States Dollars (U.S.$250,000).

(b)      Actual Delivery Date:

         The actual delivery date shall mean the date on which the BUILDER shall
         have actually delivered the VESSEL to the BUYER. However, the date on
         which the BUILDER shall have duly tendered the VESSEL for delivery in
         case of the BUYER's default as provided in Paragraph 1(c) of Article
         XIII, shall be substituted for the actual delivery date, if applicable.

2.       When and How Effected:

         Provided that the BUYER shall have fulfilled all of its obligations
stipulated under this Contract, delivery of the VESSEL shall be effected
forthwith by the concurrent execution by each of the parties hereto of the
PROTOCOL OF DELIVERY AND ACCEPTANCE in the form attached hereto as Exhibit "E",
acknowledging delivery of the VESSEL by the BUILDER and acceptance thereof by
the BUYER. Notwithstanding any provision in this Contract, it is agreed and
understood that the VESSEL shall be delivered to BUYER when completed and
accepted by BUYER regardless of the existence of any pending disagreement,
dispute or proceeding, provided that BUYER shall have paid to BUILDER all
undisputed installments due prior to or upon delivery and BUYER shall deposit
any disputed portion of the Contract Price into a joint account as contemplated
in Article V, Paragraph 4, prior to or upon delivery.

3.       Documents to be Delivered to BUYER:

         Upon delivery and acceptance of the VESSEL, the BUILDER shall deliver
to the BUYER all necessary documents, including but not limited to those listed
below, which shall accompany the PROTOCOL OF DELIVERY AND ACCEPTANCE:

(a)      PROTOCOL OF TESTS AND TRIALS of the VESSEL made pursuant to the
         Specifications.

                                                                              17
<PAGE>

(b)      PROTOCOL OF INVENTORY of the equipment of the VESSEL, including spare
         parts and the like, all as specified in the Specifications.

(c)      PROTOCOL OF STORES OF CONSUMABLE NATURE referred to under Paragraph 6
         of Article VI hereof, including the original purchase price thereof.

(d)      ALL CERTIFICATES, including the BUILDER's CERTIFICATE, required to be
         furnished upon delivery of the VESSEL pursuant to this Contract and the
         Specifications. It is agreed that if, through no fault on the part of
         the BUILDER, the classification certificate and/or other certificates
         are not available at the time of delivery of the VESSEL, provisional
         certificates shall be accepted by the BUYER, provided that the BUILDER
         shall either furnish or procure the delivery to the BUYER of the formal
         certificates as promptly as possible after such formal certificates
         have been issued.

(e)      DOCUMENTS OF ASSIGNMENT, accompanied by original documents of all
         guarantees and warranties from contractors, subcontractors, vendors,
         suppliers, manufacturers and dealers for all equipment, material and
         appurtenances supplied and installed by the BUILDER.

(f)      DECLARATION OF WARRANTY of the BUILDER that the VESSEL is delivered to
         the BUYER free and clear of any liens, charges, rights in rem, claims,
         mortgages, or other encumbrances upon the BUYER's title thereto, and in
         particular, that the VESSEL is absolutely free of all liabilities and
         burdens of any nature, including those which may be related to imposts,
         taxes or charges imposed by governmental authorities of the country of
         construction, as well as of all liabilities of the BUILDER to its
         contractors, subcontractors, employees and crew, and of all liabilities
         arising from the operation of the VESSEL in Sea Trials, or otherwise,
         prior to delivery.

(g)      DRAWINGS AND PLANS pertaining to the VESSEL as stipulated in the
         Specifications, including all plans, specifications, working drawings,
         technical descriptions, calculations, test results and other data, and
         all other such information and documents concerning the design,
         engineering and construction of the VESSEL.

(h)      COMMERCIAL INVOICE AND BILL OF SALE.

4.       Tender of VESSEL:

         If the BUYER fails to take delivery of the VESSEL after completion
thereof according to this Contract and the Specifications without any
justifiable reason, the BUILDER shall have the right to tender the VESSEL for
delivery after compliance with all procedural requirements as provided above.

5.       Title, Retention of Title and Risk:

                                                                              18
<PAGE>

(a)      Following payment of the first installment of the Contract Price:

         (i)      the VESSEL and all parts thereof as it is from time to time
                  constructed; including

         (ii)     all appurtenances and components and any other materials and
                  articles, including but not limited to machinery, equipment,
                  gear, engines and outfit (hereinafter collectively referred to
                  as "Appurtenances and Components") whether wholly or partially
                  finished or unfinished from time to time appropriated or used
                  or intended to be appropriated or used in the construction of
                  the VESSEL or ready to be so appropriated whether within the
                  premises of the BUILDER or any subcontractor or elsewhere and
                  whether or not marked and set aside pursuant to Sub-paragraph
                  (b), below

         shall forthwith become and remain the absolute property of the BUYER
         and shall not be removed from the Shipyard without the written consent
         of the BUYER or its Representative which consent shall not unreasonably
         be withheld. Provided, however, that except as specifically set forth
         in Article XI, Paragraph 3, Owner Furnished Equipment shall at all
         times be and remain the absolute property of the BUYER.

(b)      The intention of the BUILDER to transfer the property in the VESSEL
         including any Appurtenances and Components to the BUYER in accordance
         with this Sub-paragraph shall be evidenced by the BUILDER taking or
         causing the supplier of the goods or materials to take any of the
         following actions:

         (i)      Upon such Appurtenances and Components being substantially
                  ready for delivery to the Shipyard, suitably marking with the
                  VESSEL's yard number or otherwise plainly identifying or
                  permitting the BUYER or its Representative to suitably so mark
                  or plainly identify such Appurtenances and Components so as to
                  show that (A) their destination is the Shipyard, and (B) that
                  they are the property of the BUYER and (C) (where they are not
                  stored at the Shipyard or premises of the BUILDER) to whose
                  order they are held; or

         (ii)     setting aside and storing such Appurtenances and Components so
                  marked or identified to the satisfaction of the BUYER; or

         (iii)    sending the BUYER or its Representative a schedule listing and
                  giving the value of every item of the Appurtenances and
                  Components so set aside and stored; or

         (iv)     inviting the Buyer to inspect the Appurtenances and
                  Components.

(c)      The BUILDER hereby represents and warrants that there shall not be any
         retention of title clauses in force and applying to any Appurtenances
         and Components provided by the BUILDER and shall use its best efforts
         to ensure

                                                                              19
<PAGE>

         the same for any Appurtenances and Components provided by any
         subcontractor or any other person for incorporation into the VESSEL.
         The BUILDER shall promptly (but in any event within two (2) calendar
         days) notify the BUYER's Representative in writing in the event that
         more than Two Hundred Fifty Thousand United States Dollars (U.S.$
         250,000) of Appurtenances and Components under this Contract are
         subject to retention of title clauses at any point in time prior to the
         Delivery Date.

(d)      Neither the BUILDER nor any subcontractor nor any other person shall
         have a lien on any part of the VESSEL, including its Appurtenances and
         Components, which have vested in the BUYER under Article VII, Paragraph
         5, or otherwise under this Contract, or on OWNER Furnished Equipment,
         for any sum due to the BUILDER, subcontractor or any other person and
         the BUILDER shall take all such steps as may be necessary to ensure
         that the title of the BUYER and the exclusion of any such lien are
         brought to the notice of all subcontractors and other persons dealing
         with or transporting any such Appurtenances and Components, or OWNER
         Furnished Equipment, which shall include but not be limited to such
         notification being contained in all purchase orders and other documents
         emanating from the BUILDER.

(e)      No mortgages, charges, liens or encumbrances of whatsoever nature shall
         be created or registered against the VESSEL or any part thereof
         including its Appurtenances and Components without the prior written
         consent of the BUYER.

(f)      The BUILDER shall fully indemnify, defend and hold the BUYER, its
         parent, holding and affiliated companies harmless against all and any
         consequences including all costs, claims, causes of action,
         liabilities, damages and expenses whatsoever arising from such breach
         of warranty.

(g)      Notwithstanding the foregoing, the BUYER shall not be liable at any
         time for the loss of or damage to the VESSEL or any part thereof or any
         of the Appurtenances and Components or any OWNER Furnished Equipment
         and the BUILDER shall be responsible for any loss of or damage to the
         same and for the cost of storing, handling and transporting the same
         and shall effect such additional insurance as may be necessary to cover
         the risk of such loss or damage from any cause whatsoever.

(h)      The risk of loss of or damage to the VESSEL, including all
         Appurtenances and Components (as defined in this Paragraph 5) and all
         OWNER Furnished Equipment shall pass to the BUYER only upon delivery
         and acceptance thereof having been completed as stated above; it being
         expressly understood that, until such delivery by BUILDER and
         acceptance by BUYER is effected, any and all risk of loss of or damage
         to the VESSEL, including all Appurtenances and Components (as defined
         in this Paragraph 5) and all OWNER Furnished Equipment shall be in the
         BUILDER.

6.       Removal of VESSEL:

                                                                              20
<PAGE>

         The BUYER shall take possession of the VESSEL immediately upon delivery
and acceptance thereof and shall remove the VESSEL from the premises of the
Shipyard within thirty (30) calendar days after delivery and acceptance thereof
is effected. If the BUYER shall not remove the VESSEL from the premises of the
Shipyard within the aforesaid thirty (30) calendar days, then, in such event
commencing on the thirty-first (31st) calendar day the BUYER shall pay to the
BUILDER the reasonable mooring charges of the VESSEL.

7.       Export License:

         If required, the BUILDER shall be obligated to secure export license(s)
for the VESSEL and shall exercise its best efforts to secure prompt issuance of
any such export license(s) as well as any other required governmental approvals
or authorizations required for removal of the VESSEL from the country of
construction, including the territorial waters thereof. In the event BUILDER has
not secured any required export license(s) for the VESSEL within thirty (30)
calendar days of the Effective Date of this Contract, as defined in Article
XXIII, then BUILDER shall be deemed to be in default under Article XIV and BUYER
may elect, at any time thereafter, to cancel this Contract as provided in
Article XI.

                       ARTICLE VIII - FORCE MAJEURE DELAYS

1.       Causes of Delay:

         If, at any time before actual delivery of the VESSEL, either the
construction of the VESSEL or any performance required as a prerequisite to
delivery of the VESSEL is delayed due to Acts of God; acts of princes or rulers;
requirements of government authorities; war or other hostilities or preparations
therefor; revolution, sabotages, general strikes, general lockouts or other
general labor disturbances; floods, typhoons, hurricanes, tornadoes, windstorms,
lightning or other abnormal weather conditions which prevent work for at least
three (3) consecutive days; earthquakes, tidal waves, explosions, collisions or
strandings, embargoes, import restrictions, defects in materials, machinery or
equipment which could not have been detected by the BUILDER using reasonable
care (provided same did not result from the BUILDER's failure to take the
reasonably necessary measures to avoid any such delay); casting or forging
rejects or the like not due to negligence; unusual delays caused by the
Classification Society or other bodies whose documents are required (provided
same did not result from BUILDER's failure to take the reasonably necessary
measures to avoid any such delay); destruction of or damage to the Shipyard or
works of the BUILDER, its contractors, subcontractors or suppliers, or of or to
the VESSEL or any part thereof, by any causes herein described which in turn
necessarily and actually delay the construction of the VESSEL or the BUILDER's
performance under this Contract, and which could not have been prevented by the
exercise of reasonable diligence on the part of BUILDER, its contractors,
subcontractors or suppliers; then and in any such case, subject to the
provisions of Paragraph 2 below, the date by which the BUYER may either cancel
this Contract under Article III, Paragraph 1(b) or impose

                                                                              21
<PAGE>

liquidated damages under Article III, Paragraph 1(c), shall be postponed for a
period of time which shall not exceed the total accumulated time of all such
delay, provided in no event shall local strikes or labor disturbances involving
BUILDER's or its contractors' or subcontractors' employees, acts or defaults of
BUILDER's contractors, subcontractors or suppliers or breach of BUILDER's, its
contractors', subcontractors', or suppliers' warranties or guarantees be
considered as an allowable delay.

2.       Notice of Delay:

         As soon as possible and in no event more than five (5) working days
after the date of discovery by the BUILDER of an occurrence of any cause of
delay, on account of which the BUILDER claims that it is entitled under this
Contract to delay, the BUILDER shall notify the BUYER in accordance with Article
XXII of the date such causes of delay occurred and the nature thereof. As soon
as the ending of such cause of delay is known, the BUILDER shall notify the
BUYER in accordance with Article XXII of the date such cause of delay ended. The
BUILDER shall also notify the BUYER in accordance with Article XXII of the
period by which the BUILDER claims an allowable delay by reason of such cause of
delay with all reasonable dispatch after it has been determined. Failure by
BUILDER to give the required notice shall preclude BUILDER's right in such case
to claim allowable delay under this Article.

                  ARTICLE IX - OWNER FURNISHED EQUIPMENT DELAYS

         OWNER shall furnish or cause to be furnished to BUILDER at BUILDER's
Shipyard those items of machinery, material and equipment as set forth in the
Specifications to be furnished by OWNER (herein referred to as "OWNER Furnished
Equipment" or "OFE") on or before the time specified for such delivery in the
Contract Specifications (Exhibit "A"). However, BUILDER shall not require OWNER
Furnished Equipment to be delivered to BUILDER's Shipyard prior to the time that
said OWNER Furnished Equipment is required, in BUILDER's reasonable opinion, to
meet the BUILDER's Construction Schedule, as defined herein.

         If OWNER's failure to timely deliver OWNER Furnished Equipment to
BUILDER's Shipyard directly causes any delays in the BUILDER's Construction
Schedule, then such delays shall be understood to be Permissible Delays as
contemplated by Article III, Paragraph 2, and the Delivery Date shall be
extended by the equivalent number of days of delay in delivery of such OWNER
Furnished Equipment to BUILDER's Shipyard. (BUILDER agrees, however, to use its
best efforts to proceed with its work on the VESSEL so as to minimize the delay
that may be incurred by reason of late delivery of OWNER Furnished Equipment.)
In order to enable BUILDER to efficiently and economically proceed with its work
on the VESSEL, OWNER shall give BUILDER notice of any actual or anticipated
delay in the delivery of OWNER Furnished Equipment to BUILDER's Shipyard.

         Should OWNER fail to timely deliver OWNER Furnished Equipment to
BUILDER at BUILDER's Shipyard due to causes other than force majeure (which
shall in this

                                                                              22
<PAGE>

context have the same general meaning as the causes specified in Paragraph 1 of
this Article) and such delay directly results in increased costs to BUILDER
attributable to additional unavoidable physical work on the VESSEL, OWNER shall
reimburse BUILDER for its actual documented cost of such additional work.
BUILDER's entitlement to such reimbursement shall be applicable only in the
event that BUILDER has submitted prior written notice to OWNER that the delay in
delivery of OWNER Furnished Equipment will or may require additional physical
work to be performed on the VESSEL.

                         ARTICLE X - WARRANTY OF QUALITY

1.       Warranty:

         Subject to the provisions hereinafter set forth, the BUILDER warrants
the VESSEL and all components thereof fabricated and/or furnished by the BUILDER
and/or its contractors and/or subcontractors to be free of defects in
workmanship and materials, and the BUILDER undertakes to remedy, free of charge
to the BUYER, any defects in the VESSEL (which term shall include her hull,
machinery, equipment and gear) which are due to defective material and/or
improper workmanship on the part of the BUILDER and/or its contractors and/or
subcontractors as well as any error and/or inadequacy in BUILDER's design work,
if any, and any defects or discrepancies resulting from the failure of the
VESSEL to either function properly in accordance with the standards set forth in
the Specifications or to meet the Specifications, provided that the defects,
errors or inadequacies are discovered within a period of twelve (12) months
commencing upon the actual delivery date of the VESSEL.

         However, the BUILDER's warranty under and pursuant to this Article
shall not include any defects of or due to machinery and equipment supplied by
BUYER, and installed on the VESSEL, except as respects the consequences of the
BUILDER's and/or its contractors' and/or subcontractors' defective material,
improper workmanship and/or failure to install or incorporate any such equipment
into the VESSEL in a good and workmanlike manner so as to function properly and
in accordance with the Specifications. The BUILDER agrees to deliver and assign
to the BUYER all guarantees and warranties received by it in the purchase of
said machinery and equipment.

2.       Notice of Defects:

         The BUYER shall promptly notify the BUILDER in accordance with Article
XXII of any defects for which claim is made under this warranty after the
discovery thereof. The BUYER's notice shall describe the nature and extent of
the defects to the extent known to BUYER. The BUILDER shall promptly acknowledge
receipt of any such notice from BUYER. The BUILDER shall have no obligation for
any defects discovered prior to the expiry date of the said Warranty Period,
unless notice of such defects is received by the BUILDER not later than thirty
(30) days after expiry thereof.

                                                                              23
<PAGE>

3.       Remedy of Defects:

(a)      The BUILDER shall remedy, at its expense, any defects against which the
         VESSEL is warranted under this Article by making all necessary repairs
         or replacements at the Shipyard.

(b)      However, if it is impractical to bring the VESSEL to the Shipyard, the
         BUYER may cause the necessary repairs or replacements to be made
         elsewhere which is deemed by BUYER to be suitable for the purpose,
         provided that, in such event, the BUILDER may, at its own expense,
         forward or supply replacement parts or materials to the VESSEL, unless
         forwarding or supplying thereof to the VESSEL would impair or delay the
         operation or working schedule of the VESSEL. In the event that the
         BUYER proposes to cause the necessary repairs or replacements to be
         made to the VESSEL at any other shipyard or location than the Shipyard,
         the BUYER shall first, but in all events as soon as possible, give the
         BUILDER notice in accordance with Article XXII of the time and place
         such repairs will be made, and if the VESSEL is not thereby delayed, or
         her operation or working schedule is not thereby impaired, the BUILDER
         shall have the right to verify at its own cost and by its own
         representative(s) the nature and extent of the defects complained of.
         The BUILDER shall, in such case, promptly notify the BUYER in
         accordance with Article XXII after such examination has been completed
         of its acceptance or rejection of the defects as ones that are covered
         by the warranty herein provided. Upon the BUILDER's acceptance of the
         defects as justifying remedy under this Article, or upon award of the
         dispute resolution authority so determining, the BUILDER shall
         immediately pay to the BUYER all documented costs incurred for such
         repairs or replacements. Provided, that the costs chargeable to BUILDER
         for repairs or replacements under this Article shall not exceed three
         (3) times the amount that such repairs and replacements would have cost
         if they had been carried out by BUILDER at its Shipyard based on
         BUILDER's normal rates as published at the time of repairs and/or
         replacement. Interest on any unpaid balance due hereunder shall be paid
         at the rate of ten percent (10%) per annum, commencing thirty (30)
         calendar days after BUILDER's receipt of BUYER's invoice for any
         amounts due under this Article and continuing until payment has been
         remitted to BUYER.

(c)      In any case, the VESSEL shall be taken at the BUYER's cost and
         responsibility to the place elected, ready in all respects for such
         repairs or replacements.

(d)      Any work performed or any material supplied by BUILDER under this
         Article shall be further warranted for the balance of the warranty
         period specified in Paragraph 1 of this Article or six (6) months after
         completion of such work or supply, whichever is later.

(e)      Any dispute under this Article shall be resolved in accordance with the
         provisions of Article XVII hereof.

                                                                              24
<PAGE>

4.       Extent of BUILDER's Responsibility:

(a)      The BUILDER shall have no responsibility or liability for any defects
         whatsoever in the VESSEL other than the defects specified in this
         Article. Nor shall the BUILDER in any circumstances be responsible or
         liable for any consequential or special losses, damages or expenses
         including, but not limited to, loss of time, loss of profit or earnings
         directly or indirectly occasioned to the BUYER due to the defects
         specified in this Article or due to repairs or other works done to the
         VESSEL to remedy such defects.

(b)      The BUILDER shall not be responsible for any defects in any part of the
         VESSEL which have been caused subsequent to delivery of the VESSEL by
         any replacement or repair work performed by any other contractor, or
         for any defects to the extent the same have been caused by use in
         excess of specified design limitations or improper maintenance of the
         VESSEL on the part of the BUYER, its servants or agents or by ordinary
         wear and tear.

(c)      Subject always to the terms of Article XV, the warranty contained
         hereinabove in this Article replaces and excludes any other liability,
         guarantee, warranty and/or condition imposed or implied by the law,
         customary, statutory or otherwise, by reason of the construction and
         sale of the VESSEL by the BUILDER for and to the BUYER.

5.       Guarantee Engineer:

         The BUILDER shall have the right to appoint a Guarantee Engineer to
serve on the VESSEL as its representative for such portion of the warranty
period as the BUILDER may decide at BUILDER's cost and risk. The BUYER and its
employees shall give the Guarantee Engineer full cooperation in carrying out his
duties as the representative of the BUILDER on board the VESSEL. The BUYER shall
accord the Guarantee Engineer the treatment reasonably comparable to the
VESSEL's Chief Engineer and shall provide him with suitable accommodations and
subsistence at no cost to the BUILDER and/or the Guarantee Engineer.

                       ARTICLE XI - CANCELLATION BY BUYER

1.       Notice:

         In the event that the BUYER shall exercise its right of cancellation of
this Contract under and pursuant to any of the provisions of this Contract
specifically permitting the BUYER to do so, then the BUYER shall notify the
BUILDER in accordance with Article XXII and such cancellation shall be effective
as of the date when notice thereof is received by the BUILDER.

2.       Refund by BUILDER:

                                                                              25
<PAGE>

         Within five (5) business days of receipt of BUYER's notice of
cancellation of this Contract the BUILDER shall refund to the BUYER in U.S.
Dollars the sum of: (a) the full amount of all sums paid by the BUYER to the
BUILDER on account of the VESSEL; and (b) the cost delivered at BUILDER'S
Shipyard of all OWNER Furnished Equipment which has been delivered to BUILDER's
Shipyard for installation in the Vessel unless the BUILDER proceeds to dispute
resolution under the provisions of Article XVII hereof.

         In such event, the BUILDER shall pay the BUYER interest at the rate of
ten percent (10%) per annum on the amount required herein to be refunded to the
BUYER, computed from the respective dates on which either such sums were paid by
the BUYER to the BUILDER or the respective items of OWNER Furnished Equipment
were delivered to BUILDER's Shipyard, to the date of remittance by wire transfer
of such refund to the BUYER by the BUILDER.

         For purposes of the provisions addressing the BUYER's rights under this
Contract (i) prior to execution of this Contract by the parties, BUILDER shall
provide to the BUYER as partial security for BUILDER's obligations under this
Contract a performance guarantee duly executed by Sembcorp Marine Limited in the
form annexed as Exhibit "F", and (ii) on or before the Construction Commencement
Date the BUILDER shall provide to the BUYER as partial security for BUILDER's
obligations under this Contract an irrevocable stand-by letter of credit
confirmed by a bank in the United States acceptable to BUYER, in an amount
equivalent to ten percent (10%) of the Contract Price as defined in Article II,
Paragraph 1, and in the form annexed as Exhibit "G" in order to partially assure
refund to the BUYER of such sums as are contemplated in this Contract due to any
event of BUILDER's default hereunder including warranties pursuant to Article X.

3.       Discharge of Obligations:

         Upon such refund by the BUILDER to the BUYER, and the BUYER's receipt
thereof, title to the VESSEL and all OWNER Furnished Equipment which has been
delivered to the BUILDER's shipyard for installation in the VESSEL shall be
transferred from the BUYER to the BUILDER and thereafter all obligations, duties
and liabilities of each of the parties hereto to the other under this Contract
(excluding only the provisions of Articles X, XI, XV, XVII and XX) shall be
forthwith completely discharged.

4.       Termination for BUYER's Convenience:

         Notwithstanding any other provision of this Contract, in addition to
 any other right that the BUYER may have under the Contract to cancel the
 Contract, the BUYER shall have the right to terminate the Contract, at its sole
 option, upon notifying the BUILDER in accordance with Article XXII, which
 notice may be given at any time prior to actual delivery of the VESSEL by the
 BUILDER to the BUYER and acceptance of the VESSEL by the BUYER. In the event
 the BUYER exercises such right of termination at any time after the
 Construction Commencement Date, the BUYER shall pay the BUILDER within thirty
 (30) calendar days of the BUILDER's receipt of such notice BUILDER's documented
 costs (including overhead costs and project closure costs) up

                                                                              26
<PAGE>

to the date of termination, less any installment payments received by BUILDER,
plus a lump sum termination fee calculated as twenty percent (20%) of any
remaining installment payments which are not yet due and payable under the terms
of this Contract as of the date of termination. Provided, however, that the
total amount payable by the BUYER to the BUILDER shall never exceed the Contract
Price. Provided, further, that no fee or cost shall be payable by the BUYER to
the BUILDER in respect of BUYER's termination of either this Contract or any
other contracts for construction of a vessel between the BUILDER and the BUYER
in respect of which, at the time of BUYER's notice of termination, the
Construction Commencement Date for such contract has not occurred.

         The termination fee as described in the preceding paragraph shall be
the BUYER's sole financial obligation to the BUILDER and the BUILDER's exclusive
remedy in the event of such termination of the Contract. Upon payment by the
BUYER of the applicable termination fee to the BUILDER (or refund by the BUILDER
to the BUYER, as the case may be), the BUILDER shall release the BUYER from any
liability or obligation to reimburse the BUILDER for any costs or damages,
including without limitation, loss of profits or revenues that the BUILDER may
suffer or incur from such termination and the BUYER shall at that time release
the stand-by letter of credit and the performance guarantee.

                        ARTICLE XII - SUSPENSION BY BUYER

1.       Suspension of performance for BUYER's convenience:

         At the BUYER's sole discretion, the BUYER shall have the recurring
right, exercisable at any time, subject to giving forty-five (45) calendar days
written notice to the BUILDER, to suspend performance under this Contract in
which case the BUILDER shall promptly forward to the BUYER all completed or
uncompleted drawings, reports and other documents related to the BUILDER's
performance under this Contract and the following provisions shall apply:

         -        The BUYER shall pay the BUILDER the sum of (i) progress
                  payments due under the terms of the Contract prior to the date
                  of suspension (to the extent not already paid), (ii) the
                  BUILDER's audited additional costs, including overhead,
                  directly related to this Contract up to the date of
                  suspension; (iii) the BUILDER's audited direct costs,
                  including overhead, to mothball the VESSEL in preparation for
                  the suspension period; (iv) a fee of Thirty Thousand United
                  States Dollars (U.S.$30,000) per day during the period of
                  suspension; and (v) (the BUILDER's audited direct costs,
                  including overhead, to reactivate the construction of the
                  VESSEL.

         -        The BUILDER shall immediately and in consultation with the
                  BUYER revise its work schedule or program so as to reduce as
                  much as possible the consequences to the BUYER flowing or
                  which may flow from such suspension.

                                                                              27
<PAGE>

         -        The BUILDER shall use its best endeavors to maintain,
                  redeploy, transfer or retain its personnel and equipment in
                  any part of the work not suspended at the same time or in any
                  other work for the BUYER or its affiliates under other
                  contracts.

         -        However, no fee or cost shall be payable by the BUYER to the
                  BUILDER in respect of either this VESSEL or any other vessels
                  that the BUILDER may have contracted to build for the BUYER in
                  respect of which at the time of BUYER's notice of suspension
                  the Construction Commencement Date for such vessel has not
                  occurred.

         -        The BUILDER shall notify the BUYER in writing immediately upon
                  the BUILDER's performance hereunder being suspended, of the
                  date and time on which the services were suspended and forward
                  to the BUYER all other particulars which the BUILDER may rely
                  on in making any claim under this Article.

         -        The BUYER's right to suspend the Contract as provided herein
                  shall be without prejudice to its right to terminate this
                  Contract at any time in accordance with the provisions of
                  Article XI, Paragraph 4.

         -        The period of suspension shall not be greater than six (6)
                  months unless otherwise mutually agreed in writing.

2.       Recommencement of performance at BUYER's convenience:

         -        At the BUYER's sole discretion, the BUYER shall have the
                  recurring right, exercisable at any time, subject to giving
                  forty-five (45) calendar days written notice to the BUILDER,
                  to require the BUILDER to recommence performance which has
                  been suspended under this Contract in which case the BUILDER
                  shall promptly recommence all or such part of the performance
                  as specified by BUYER in said notice.

         -        The BUILDER shall notify the BUYER in writing immediately upon
                  the BUILDER's performance hereunder recommencing following
                  suspension, of the date and time on which the services were
                  recommenced and forward to the BUYER all other particulars
                  which the BUILDER may rely on in making a claim under the
                  Article.

         -        The Delivery Date, as defined in Article VII, Paragraph 1(a),
                  shall be extended for a period corresponding to the period of
                  the suspension caused or requested by the BUYER, which shall
                  be understood to constitute Permissible Delays as contemplated
                  by Article III, Paragraph 2.

                         ARTICLE XIII - BUYER'S DEFAULT

                                                                              28
<PAGE>

1.       Definition of Default:

         The BUYER shall be deemed to be in default of performance of its
obligations under this Contract in the following cases:

(a)      If the BUYER fails to pay any installments to the BUILDER within five
         (5) business days after receipt of notice in accordance with Article
         XXII that any such installment became due and payable under the
         provisions of Article II hereof; or

(b)      If the BUYER fails to pay the final installment to the BUILDER
         concurrently with the delivery of the VESSEL by the BUILDER and
         acceptance thereof by the BUYER as provided in Article VII hereof; or

(c)      If the BUYER fails to take delivery of the VESSEL, when the VESSEL is
         duly tendered for delivery by the BUILDER under the provisions of
         Article VII hereof; or

(d)      If the BUYER goes into liquidation, whether voluntary or compulsory, or
         enters into a scheme of arrangement, or makes a general assignment of
         its assets for the benefit of its creditors, or appoints a receiver or
         receivers of any kind whatsoever, whether temporary or permanent, for
         the property of the BUYER, or if the BUYER institutes proceedings for
         its reorganization or such proceedings are instituted by creditors and
         approved by the court, whether proposed by a creditor, a stockholder or
         any other person whomsoever, or if BUYER suffers any execution against
         a major portion of its assets which is not satisfied within seven (7)
         days.

         If any default by BUYER under Paragraphs (a), (b) or (c) above
 necessarily and actually causes delays in either the construction of the VESSEL
 or any performance required as a prerequisite to delivery of the VESSEL, such
 delays shall be understood to be Permissible Delays as contemplated by Article
 III, Paragraph 2.

2.       Interest and Charges:

         If the BUYER has not made payment as to any installment as provided in
Paragraph 1(a) and (b) of this Article on its due date, the BUYER shall pay
interest on such installment at the rate of ten percent (10%) per annum from the
due date thereof to the date of payment to the BUILDER of the full amount of
such installments, including interest. In case the BUYER shall fail to take
delivery of the VESSEL as provided in Paragraph 1(c) of this Article, the BUYER
shall pay interest upon the final installment at the same rate as aforesaid from
and including the day upon which the VESSEL is duly tendered for delivery by the
BUILDER. In the event a due date falls on a non-business day of either BUILDER
or BUYER, the payment with respect thereto shall be due on the next succeeding
business day of both BUILDER and BUYER.

3.       Effect of BUYER's Default:

                                                                              29
<PAGE>

(a)      If any default by the BUYER occurs as defined in Paragraph 1(a), (b)
         and (c) of this Article, the Delivery Date shall be automatically
         postponed for the period of continuance of such default by the BUYER.

(b)      If any such default by the BUYER continues for a period of five (5)
         business days, the BUILDER may, at its option, notify BUYER in
         accordance with Article XXII of BUILDER's intention to cancel the
         Contract, and if BUYER does not remedy the default within thirty (30)
         business days after receipt of such notice, BUILDER may cancel this
         Contract by giving notice to such effect to the BUYER in accordance
         with Article XXII.

         In the event of such cancellation of this Contract, the BUILDER shall
         be entitled to retain any installment or installments previously paid
         by the BUYER to the BUILDER on account of this Contract (it being
         understood by both parties that retention of any such installments by
         BUILDER is by way of liquidated damages and not by way of penalty).

(c)      BUYER shall not under any circumstances be responsible or liable to
         BUILDER, its contractors or subcontractors, for any consequential or
         special losses, damages or expenses including, but not limited to, loss
         of time, loss of profit or earnings whether directly or indirectly
         arising out of this Contract.

4.       Sale of VESSEL:

(a)      In the event of default by the BUYER pursuant to this Contract as set
         forth above, the BUILDER shall have the right either to complete or not
         to complete the VESSEL as it deems fit, and to sell the VESSEL at a
         public or private sale, upon ten (10) business days prior written
         notice to the BUYER in accordance with Article XXII, on such terms and
         conditions as the BUILDER deems fit, without being answerable for any
         loss or damage.

(b)      In the event of the sale of the VESSEL in a completed state, the
         proceeds of sale received by the BUILDER shall be applied first to
         payment of all documented expenses attending such sale and otherwise
         incurred by the BUILDER as a result of the BUYER's default, and then to
         payment of all unpaid installments of the Contract Price and interest
         on such installments at the rate of ten percent (10%) per annum from
         the respective due dates thereof to the date of application.

(c)      In the event of sale of the VESSEL in an incompleted state, the
         proceeds of sale received by the BUILDER shall be applied first to all
         documented expenses attending such sale and otherwise incurred by the
         BUILDER as a result of the BUYER's default, and then to payment of all
         costs of construction of the VESSEL less the installments so retained
         by the BUILDER.

(d)      If the proceeds of sale are insufficient to pay such total amounts
         payable as aforesaid, the BUYER shall promptly pay the deficiency to
         the BUILDER upon written request with interest at the rate of ten
         percent (10%) per annum from the

                                                                              30
<PAGE>

         date of BUILDER's written request for payment to the date of BUYER's
         payment to BUILDER.

(e)      In either of the above events of sale, if the proceeds of sale exceed
         the total of amounts to which such proceeds are to be applied as
         aforesaid, the BUILDER shall promptly pay the excess to the BUYER with
         interest at the rate of ten percent (10%) per annum from the date of
         sale to the date of payment to BUYER.

         The rights conferred upon the BUILDER under the terms of this Article
         XIII shall be in lieu of any rights which the BUILDER would have either
         at law or in equity upon the happening of the events of default
         specified herein, or upon any failure on the part of the BUYER to
         perform the undertakings, agreements, and covenants on its part to be
         performed hereunder. The failure of the BUILDER to exercise the rights
         conferred upon it hereunder in any one or more instances of the
         occurrence of an event of default, as hereinabove defined, shall not
         constitute a waiver of BUILDER's right subsequently to exercise such
         rights under this Contract.

                         ARTICLE XIV - BUILDER'S DEFAULT

1.       Definition of Default:

         The BUILDER shall be deemed to be in default of its obligations under
this Contract if, after BUYER gives five (5) calendar days written notice in
accordance with Article XXII to correct the same, the BUILDER fails in any
respect to observe the provisions of this Contract.

         Subject always to the provisions of Article III, so long as BUILDER
takes prompt and reasonable action toward the cure or correction of the
condition complained of, and continues diligently to pursue the said cure or
correction, BUILDER shall not be considered to be in default on account thereof
if it is not possible to correct the breach or defect within said five (5) day
period.

         The following shall also be considered to be events of default:

(a)      (i)      insolvency or inability of the BUILDER to pay its debts as and
                  when they fall due; or

         (ii)     presentation of a winding-up petition (except for the purpose
                  of amalgamation or reconstruction when solvent); or

         (iii)    issuance of a notice of meeting of members or shareholders for
                  the passing of a resolution for winding-up or reconstruction
                  (except for the purpose of amalgamation or reconstruction when
                  solvent); or

                                                                              31
<PAGE>

         (iv)     making of a statutory declaration by the directors or similar
                  officers of the BUILDER that the BUILDER cannot by reason of
                  its liabilities continue its business; or

         (v)      presentation of a petition for judicial management; or

         (vi)     making of a proposal to the BUILDER's creditors for a
                  composition in satisfaction of its debts or a scheme of
                  arrangement of its affairs; or

         (vii)    making a general assignment of the BUILDER's assets for the
                  benefit of its creditors; or

         (viii)   the appointment of a receiver, receiver or manager, or
                  provisional liquidator; or

         (ix)     execution or other process issued on a judgment, direction,
                  decree or order of any court in favour of a creditor of the
                  BUILDER is returned unsatisfied in whole or in part; or

         (x)      taking of steps to enter into a standstill or similar
                  arrangement whereby creditors of the BUILDER agree to give the
                  BUILDER more time to pay its debts or restructure its debts
                  either by making installment payments or otherwise; or

         (xi)     additionally similar or analogous processes or events under
                  any applicable law affecting the BUILDER, its assets or its
                  liabilities; or

(b)      The BUILDER having met or exceeded the allowable delay periods as
         provided in Article III, Paragraphs 1(a) or 1(b); or

(c)      Any event of default under any other contracts for the construction of
         a vessel between BUILDER, or any of its affiliates, and BUYER, its
         parent, holding or affiliated companies or a joint venture in which
         BUYER or any one or more of such related companies of BUYER owns at
         least a fifty percent (50%) equity interest, which entitles the BUYER
         or such other parent, holding, affiliated or joint venture companies of
         BUYER to terminate in accordance with the terms thereof.

2.       Effect of BUILDER's Default:

(a)      If any default by the BUILDER occurs as defined in Paragraph 1 of this
         Article, BUYER may, at its election, either cancel this Contract as
         provided in Article XI, or require BUILDER to deliver possession of the
         VESSEL and all of its Appurtenances and Components (as defined in
         Article VII, Paragraph 5) to BUYER (and title thereto, to the extent
         that title to any such items is not already vested in the BUYER), in
         whatever state of completion the same may be at the date of such
         election. If BUYER elects to take possession of the VESSEL (and title
         thereto, to the extent that title to any such items is not already
         vested in the

                                                                              32
<PAGE>

         BUYER), as aforesaid, then BUYER may bring such workers to the Shipyard
         as BUYER chooses and perform such work as may be necessary to prepare
         the VESSEL for removal, and may so remove the VESSEL from BUILDER's
         Shipyard to a reputable shipyard of international standing in BUYER's
         reasonable opinion for completion or another location of BUYER's
         selection for disposal.

         BUYER may thereafter proceed to contract with or employ any other
         person or persons to complete the work or any part thereof and provide
         any equipment, materials and labor as may be necessary for such
         completion.

         Upon completion of the work by the BUYER, the BUYER shall document the
         cost to the BUYER of completing the work including all expenses,
         charges, losses and damages incurred by the BUYER in consequence of and
         incidental to the default of the BUILDER.

         Once BUYER has documented BUYER's cost to complete, BUILDER shall be
         entitled to receive, (or shall be required to repay to BUYER, as the
         case may be) a sum arrived at in the following manner:

         The sum of (a) all progress payments paid by BUYER to BUILDER, plus (b)
         BUYER's documented cost of completion, as aforesaid, subtracted from
         the Contract Price set forth in Article II, including interest on the
         amount receivable (or payable, as the case may be) hereunder at the
         rate of ten percent (10%) per annum computed from the time BUYER has
         documented its cost to complete the VESSEL to BUILDER until remittance
         of the amounts receivable or payable.

         The rights conferred upon the BUYER under the terms of this Article XIV
         shall be in addition to, and not in substitution for, any rights which
         the BUYER would have in either law or equity upon the happening of the
         events of default specified herein, or upon any failure on the part of
         the BUILDER to perform the undertakings, agreements, and covenants on
         its part to be performed hereunder. The failure of the BUYER to
         exercise the rights conferred upon it hereunder in any one or more
         instances of the occurrence of an event of default, as hereinabove
         defined, shall not constitute a waiver of BUYER's right subsequently to
         exercise such rights under this Contract.

                    ARTICLE XV - LIABILITIES AND INDEMNITIES

1.       Liability of BUILDER:

         BUILDER hereby agrees to defend, indemnify and hold harmless BUYER, its
parent, holding and affiliated companies, the owner and operator of the VESSEL,
their employees, directors, officers and agents, including the VESSEL and all
other vessels in the same or associated ownership, against all claims, demands
or causes of action, by all parties or persons whomsoever and whatsoever
including, without limitation,

                                                                              33
<PAGE>

BUILDER and its employees, directors, officers, agents, contractors and
subcontractors and all third persons based on personal injury, disease or death
or property damage or destruction occurring prior to the delivery to and
acceptance by BUYER of the VESSEL arising out of or in any way related to the
performance by BUILDER or any of its contractors or subcontractors of the work
hereunder, regardless of cause, including the sole or concurrent negligence or
fault of BUYER, its employees, directors, officers, agents or subcontractors, or
of a third party, or an event of force majeure. Notwithstanding the foregoing,
the BUILDER shall be under no liability whatsoever to the BUYER, the
Representative, his assistant(s) or BUYER's contractors (other than BUILDER) or
invitees for personal injuries, including disease and death, suffered by the
Representative, his assistant(s) or BUYER's contractors (other than BUILDER) or
invitees during the time when he or they are on the VESSEL, or within the
premises of either the BUILDER or its contractors or subcontractors, or are
otherwise engaged in and about the construction of the VESSEL, unless such
personal injuries, including disease and death, were caused by the gross
negligence or willful misconduct of the BUILDER, any of its employees, agents,
contractors or subcontractors. The BUILDER shall assume liability to the BUYER,
the Representative and his assistant(s), BUYER's contractors (other than
BUILDER) and BUYER's invitees for damage to, loss or destruction of property of
the BUYER's Representative, his assistant(s), BUYER's contractors (other than
BUILDER) or BUYER's invitees if such damage, loss or destruction was caused by
the gross negligence or willful misconduct of the BUILDER, or of any of its
employees, agents, contractors or subcontractors. For purposes of this Contract,
the terms "gross negligence" and "willful misconduct" are defined as "an
intentional act or omission in disregard of harmful avoidable consequences, or a
reckless act or omission in disregard of harmful avoidable consequences".

2.       Scope of Indemnities:

         In all circumstances where responsibility is allocated herein, the
indemnifying party shall be obligated to bear the expense of the investigations
and expenses of all claims or demands or causes of action arising therefrom and
to pay the full amount of any judgment rendered against the indemnified parties,
it being stipulated that all obligations of indemnity assumed herein shall
survive the termination of this Contract, regardless of how such termination is
effected. The indemnifying party shall have the control of the defense and
settlement of all such claims and lawsuits including the selection of attorneys,
the expense of all which shall be borne by it. The indemnified parties shall
provide reasonable assistance to the indemnifying party in relation to the
defense of claims which are subject to indemnity hereunder. Nothing herein
contained shall prevent the indemnified parties from participating at their own
expense with counsel of their own choosing in any such defense or settlement.

3.       Consequential Loss/Damage

         Notwithstanding any other provision of this Contract except as provided
in Article III(1)(c), neither party shall be responsible for or liable to the
other party for any special, indirect or consequential losses, damages or
expenses including, but not limited to, loss of production, loss of profit or
earnings suffered or incurred by any party arising out of or in connection with
the Contract, howsoever the same may have been caused.

                                                                              34
<PAGE>

                             ARTICLE XVI - INSURANCE

1.       Extent of Insurance Coverage:

         From the time of Contract signing until the VESSEL is completed,
delivered to and accepted by the BUYER, the BUILDER shall, at its own cost and
expense, keep the VESSEL and all machinery, materials and equipment either
delivered to the Shipyard or being handled by BUILDER for the VESSEL or built
into, or installed in or upon the VESSEL (including all Appurtenances and
Components and all OWNER Furnished Equipment as defined in Article IX), fully
insured under coverage satisfactory to BUYER and corresponding to the American
Institute Clauses for Builder's Risks.

         Said Builder's Risks insurance shall include supplemental coverage for
war risks, strikes and earthquakes but BUILDER may elect to self insure such
supplemental coverage for the mutual benefit of BUILDER and BUYER unless it
appears that a circumstance of political instability is imminent, at which time
BUILDER shall cause the standard Builder's Risks policy required hereunder to be
augmented with coverage for war risks, strikes, locked-out workmen, labor
disturbances, riots, civil commotion without deletions of protection and
indemnity and collision clauses, and earthquakes.

         The amount of such insurance coverage shall, up to and including the
date and time of delivery of the VESSEL, be in an amount at least equal to, but
not limited to, the aggregate of the payments made by the BUYER to the BUILDER
and the value of any OWNER Furnished Equipment (as defined in Article IX)
delivered to the Shipyard, which OWNER Furnished Equipment (as defined in
Article IX) shall not exceed a delivered value of One Hundred Seventy-Five
Million United States Dollars (U.S.$ 175,000,000).

         The policy referred to hereinabove shall be taken out in the joint
names of the BUILDER and the BUYER and all losses under such policy shall be
payable to the BUILDER and/or the BUYER in accordance with their respective
interests. Any deductible under this insurance policy shall be for the account
of BUILDER.

         Notwithstanding the above, the BUYER shall compensate the BUILDER for
the increased insurance cost and expense under or pursuant to any part of this
Article, if any, incurred by the BUILDER due to the BUYER's Default as specified
in Article XIII hereof.

2.       Application of Recovered Amount:

(a)      Partial Loss:

         In the event the VESSEL shall be damaged by any insured cause
         whatsoever prior to acceptance thereof by the BUYER and in the further
         event that such damage shall not constitute an actual or a constructive
         total loss of the VESSEL, the BUILDER and/or BUYER shall apply the
         amount recovered under the

                                                                              35
<PAGE>

         insurance policy referred to in Paragraph 1 of this Article to the
         repair of such damage satisfactory to the BUYER and the Classification
         Society and the regulatory bodies, and the BUYER shall accept the
         VESSEL under this Contract if completed in accordance with this
         Contract and Specifications.

(b)      Total Loss:

         However, in the event that the VESSEL is determined to be an actual or
         constructive total loss, the BUILDER shall by the mutual agreement
         between the parties hereto, either:

         (i)      Proceed in accordance with the terms of this Contract, in
                  which case the amount recovered under said insurance policy
                  shall be applied to the reconstruction of the VESSEL's damage,
                  provided the parties hereto shall have first agreed in writing
                  as to such reasonable postponement of the Delivery Date and
                  adjustment of other terms of this Contract including the
                  Contract Price as may be necessary for the completion of such
                  reconstruction; or

         (ii)     Refund to the BUYER the amount of all installments paid to the
                  BUILDER under this Contract plus the value of all OWNER
                  Furnished Equipment (as defined in Article IX) delivered to
                  the Shipyard with interest at the rate of ten percent (10%)
                  per annum computed from the date of loss of the VESSEL until
                  paid to BUYER, whereupon this Contract shall be deemed to be
                  terminated and all rights, duties, liabilities and obligations
                  of each of the parties to the other except as contemplated
                  under Articles XI, XV, XVII and XX shall terminate forthwith.

         If the parties hereto fail to reach agreement as contemplated under
         Sub-paragraph (b)(i), above, within two (2) months after the VESSEL is
         determined to be an actual or constructive total loss, the provisions
         of Sub-paragraph (b)(ii), above, shall apply.

3.       Termination of BUILDER's Obligation to Insure:

         The BUILDER's obligation to insure the VESSEL hereunder shall cease and
terminate forthwith upon delivery thereof and acceptance by the BUYER.

4.       Supplemental Insurance:

         In addition, from the time of Contract signing until the completion,
delivery and acceptance of the VESSEL, BUILDER and its contractors and
subcontractors shall, at their own cost, maintain the following insurances:

(a)      Worker's Compensation and Employer's Liability Insurance affording
         benefits as provided by applicable Worker's Compensation Statutes in
         the jurisdiction where work is performed, and providing indemnity with
         respect to Employer's Liability with limits as required by local laws,
         but in no event less than Two Million Five

                                                                              36
<PAGE>

         Hundred Thousand United States Dollars (U.S.$ 2,500,000) any one claim
         arising from any one event.

(b)      Third Party Liability Insurance covering all of BUILDER's operations
         and including Automotive, Contractual Liability and Contractor's
         Protective Liability with a combined single limit of not less than Five
         Million United States Dollars (U.S.$ 5,000,000) per occurrence of
         bodily injury and/or property damage.

(c)      All of the insurances specified in this Article, excepting only
         Statutory Worker's Compensation Insurance, shall name BUYER as an
         additional assured.

(d)      The underwriters shall be of recognized responsibility and the
         policies, the terms of the policies, the insurance companies and
         underwriters shall be subject to written approval by BUYER, which
         approval shall not be unreasonably withheld. Upon BUYER's request at
         any time, BUYER shall be furnished copies of such policies or other
         evidence of insurance satisfactory to BUYER when obtained by BUILDER
         from the underwriters and the receipt for the payment of the current
         year's premium.

(e)      Each policy specified in this Article shall include an endorsement
         under which the underwriters waive rights of subrogation against the
         BUYER, its parent, holding and affiliated companies.

(f)      If the BUILDER shall fail to keep itself insured to the satisfaction of
         the BUYER or to produce any such policy or receipt as aforesaid, the
         BUYER shall be entitled at the expense of the BUILDER to take up such
         insurance or insurances as the BUYER in its absolute discretion deems
         necessary to protect its interest and the BUILDER shall be liable to
         pay, indemnify and/or reimburse the BUYER forthwith on demand any sums
         expended and/or incurred by the BUYER for such purpose.

(g)      The BUILDER shall not do or allow to be done any act or thing which
         might invalidate any insurance taken out pursuant to this Agreement.

                        ARTICLE XVII - DISPUTE RESOLUTION

1. Except where otherwise expressly provided herein, all claims by either party
against the other and all differences and disputes arising out of or in
connection with this Contract shall be referred to the Commercial Court, Queen's
Bench Division of the High Court of England and Wales to whose exclusive
jurisdiction each of the parties hereto irrevocably submits.

2. Without prejudice to sub-clause (1) above, any dispute or difference of
opinion between the parties relating to conformity of the construction of the
VESSEL, materials or workmanship with this Contract, the Specifications and
other contract documents, and/or any other technical issue, may, by written
agreement between the Parties, be

                                                                              37
<PAGE>

referred to an expert, acting as an expert and not an arbitrator, to be
appointed by written agreement between them and whose opinion on the matter
shall be final and binding upon the parties hereto. The costs of any expert
appointed pursuant to this Contract together with the costs of such proceedings
shall be paid by the losing party except as the expert may otherwise decide.

3. If the parties shall fail to agree in writing either (i) to submit the
dispute to a technical expert or (ii) upon the identity of a mutually acceptable
technical expert as aforesaid, such dispute shall be settled in the manner as
defined in sub-clause (1) above.

4. In the event that any dispute or difference is referred either to the
Commercial Court or to an expert, the court or expert, as the case may be,
shall, where the dispute requires, include a finding as to whether or not the
Delivery Date of the VESSEL should, as a result of such dispute, be in any way
altered thereby.

5. During the course of any proceedings as provided in this Article XVII prior
to delivery to and acceptance by the BUYER of the VESSEL, it is understood and
agreed that the BUILDER shall diligently continue the construction of the VESSEL
unless otherwise specifically instructed in writing by the BUYER.

6. For the purposes of any proceedings pursuant to this Article, the parties
hereby irrevocably appoint the following as their agents within England for the
service of process:

         SFIC
         Simon Curtis
         Curtis Davis Garrard
         Bedfont Cross, Stanwell Road
         Heathrow Airport, Feltham TW14 8NY U.K.

         The Builder
         HFW Nominees Ltd.
         Marlow House
         Lloyds Avenue
         London  EC3N 3AL U.K.

                    ARTICLE XVIII - RIGHTS OF ASSIGNMENT AND
                          VESSEL RECIPIENT DESIGNATION

1.       Assignment of the Contract:

         BUILDER shall not assign this Contract unless prior consent of the
BUYER is given in writing. BUYER may, without BUILDER's consent, assign this
Contract to any of its parent, holding, affiliated or successor companies, or to
any third party.

                                                                              38
<PAGE>

         This Contract shall inure to the benefit of and shall be binding upon
the lawful successors or the legitimate assigns of either of the parties hereto.

2.       BUYER's Right to Designate Recipient of VESSEL:

         BUYER shall have the right to designate a party other than BUYER as the
recipient of the BUYER's rights in respect of delivery and acceptance of the
VESSEL by submission of notice to BUILDER in accordance with Article XXII at any
time prior to the actual date of VESSEL delivery and acceptance. In the event of
submission of such notice by BUYER, BUILDER shall (i) issue the Bill of Sale in
the name of the party which has been so designated by BUYER , (ii) if requested
by BUYER arrange for the performance guarantee and stand-by letter of credit
contemplated by Article XI, Paragraph 2, to be amended so as to be for the
benefit of such designee; and (iii) exert its best efforts to issue the other
documents to be furnished by it upon delivery and acceptance of the VESSEL in
the name of said party, which party shall be entitled to all rights, privileges
and benefits which would otherwise accrue to BUYER hereunder upon and following
delivery and acceptance of the VESSEL including, without limitation, those
contained in Article X (Warranty of Quality). The delivery of such notice to
BUILDER shall not relieve BUYER of any of its obligations under this Contract
whatsoever including, without limitation, obligations which may relate to or
arise either upon or subsequent to delivery and acceptance of the VESSEL.

                         ARTICLE XIX - TAXES AND DUTIES

         BUILDER agrees to bear and pay all taxes, licenses, duties and fees of
whatsoever nature, including withholding taxes, levied or assessed on BUILDER in
connection with or incident to the performance of this Contract by any
governmental agency including, but not limited to, taxes or levies related to
unemployment compensation insurance, old age benefits, social security, or any
other taxes upon the income or wages of BUILDER, its agents, employees, and
representatives and any ad valorem or sales/VAT tax levied on the work or
BUILDER's invoices. BUILDER agrees to stipulate the aforesaid conditions in its
agreements with its subcontractors and representatives and BUILDER agrees to be
liable for any breach of such agreements. BUILDER shall indemnify, defend and
hold BUYER and its affiliates harmless in respect of liability for such taxes,
licenses, duties and fees.

               ARTICLE XX - PATENTS, TRADEMARKS, COPYRIGHTS, ETC.

1.       Patents, Trademarks and Copyrights:

(a)      The BUILDER shall, without limitation of time, defend any claim, suit
         or proceeding brought against the BUYER, its parent, holding,
         affiliated companies, the owner or operator of the VESSEL and/or the
         VESSEL alleging that the design, process, device, apparatus, plans or
         specifications or the method of construction employed by the BUILDER
         hereunder or the tools or implements

                                                                              39
<PAGE>

         used by the BUILDER in the performance of this Contract constitutes
         infringement of any patent, and the BUILDER shall indemnify, defend and
         save the BUYER, its parent, holding and affiliated companies, the
         VESSEL, its owners and operators harmless from and against any such
         claim, suit or proceeding. The BUYER shall promptly notify the BUILDER
         in accordance with Article XXII of any such claim, suit or proceeding
         and shall permit the BUILDER to control the conduct and settlement of
         such claim, suit or proceeding; provided, however, no settlement which
         purports to acknowledge on the BUYER's behalf the validity of any
         patent shall be entered into without the BUYER's prior written consent.
         The BUYER shall provide information and assistance to the BUILDER, at
         the BUYER's expense, as may be reasonably necessary to aid in the
         conduct and settlement of the claim, suit or proceeding. The BUYER
         shall be entitled to participate, at its own expense, in the conduct
         and settlement of such claim, suit or proceeding through its selected
         representatives and attorneys.

(b)      The BUYER shall, without limitation of time, defend any claim, suit or
         proceeding brought against the BUILDER alleging that the construction
         or use by the BUILDER, pursuant to this Contract, of any design,
         process, device or apparatus specified or furnished by the BUYER and
         mounted upon or used in connection with the VESSEL constitutes
         infringement of any patent and the BUYER shall indemnify, defend and
         save the BUILDER harmless from and against any such claim, suit or
         proceeding. The BUILDER shall promptly notify the BUYER in accordance
         with Article XXII of any such claim, suit or proceeding and shall
         permit the BUYER to control the conduct and settlement of such claim,
         suit or proceeding; provided, however, no settlement which purports to
         acknowledge on the BUILDER's behalf the validity of any patent shall be
         entered into without the BUILDER's prior written consent. The BUILDER
         shall provide information and assistance to the BUYER, at the BUILDER's
         expense, as may be reasonably necessary to aid in the conduct and
         settlement of the claim, suit or proceeding. The BUILDER shall be
         entitled to participate, at its own expense, in the conduct and
         settlement of such claim, suit or proceeding through its selected
         representatives and attorneys.

                             ARTICLE XXI - ADDRESSES

         The BUYER's address designated for the purpose of notices under this
Contract shall be Santa Fe International Corporation, 5420 LBJ Freeway, Suite
1100, Dallas, Texas, 75240, U.S.A., Attention: Mr. N. Pharr Smith, telefax (972)
701-7390, unless and until the BUYER notifies the BUILDER to the contrary in
writing. An additional copy of all such notices shall be sent to BUYER's
Representative as designated under this Contract, in accordance with Article
XXII.

         The BUILDER's address designated for the purpose of notices under this
Contract shall be PPL Shipyard Pte. Ltd., 21 Pandan Road, Singapore 609273,
Attention: Mr. Ong Tian Khiam, telefax (65) 264-4130, unless and until the
BUILDER notifies the BUYER to the contrary in writing.

                                                                              40
<PAGE>

         No later than the Construction Commencement Date, each of the parties
shall furnish to the other in writing the name of its representatives who shall
be authorized to approve and execute all change orders.

                       ARTICLE XXII - NOTICES AND LANGUAGE

1.       Notice:

         Notices required or permitted to be given hereunder shall be in writing
and shall be deemed given when delivered personally, by registered or certified
mail or by facsimile to the address of the party receiving such notice, as
specified in Article XXI.

2.       Language:

         Any and all notices and communications in connection with this Contract
shall be written in the English language.

                   ARTICLE XXIII - EFFECTIVE DATE OF CONTRACT

         This Contract shall become effective upon the date first written above
(herein called the "Effective Date").

                          ARTICLE XXIV - INTERPRETATION

1.       Laws Applicable:

         The parties hereto agree that the validity and interpretation of this
Contract and of each Article and part thereof shall be governed by English law
excluding, however, any of its conflicts of law rules or other provisions which
may refer to the laws of another jurisdiction.

2.       Discrepancies:

         All general language or requirements embodied in the attachments to
this Contract are intended to amplify, explain and implement the requirements of
this Contract. However, in the event that any language or requirements so
embodied permit an interpretation inconsistent with any provisions of this
Contract, then, in each and every such event, the applicable provisions of this
Contract shall prevail and

                                                                              41
<PAGE>

govern. In the event that the specifications conflict with the drawings, the
specifications shall prevail and govern.

3.       Independent Contractor:

         The BUILDER agrees that it is an independent contractor in sole charge
of and in exclusive control of the work. The exercise by the BUYER or its
Representative of any right to review, approve and inspect the work shall not
relieve the BUILDER of its total responsibility for its work and schedule and
that of its contractors and subcontractors.

4.       Headings:

         The headings in this Contract shall not be deemed to be a part of this
Contract and are not intended to be used in the interpretation or construction
of this Contract.

5.       Entire Agreement:

         This Contract, along with the Overall Agreement dated on or about 11
April, 2001, between the parties, contains the entire agreement and
understanding between the parties hereto with respect to the subject matter
hereof and supersedes all prior negotiations, representations, undertakings and
agreements on the subject matter of this Contract between the parties for the
construction of this Vessel. In the event of any conflict between the provisions
of this Contract and the Overall Agreement, the provisions of the Overall
Agreement shall prevail.

                        ARTICLE XXV - CONFLICT AND AUDIT

1.       Conflict of Interest:

         BUILDER shall exercise reasonable care and diligence to prevent any
actions or conditions which could result in a conflict with the best interests
of BUYER, its parent, holding or affiliated companies. This obligation shall
apply to the activities of BUILDER'S employees and agents arising from this
Contract, in their relations with BUYER's employees and representatives and
their respective families, and with vendors, contractors, subcontractors and
third parties hereunder. BUILDER's efforts shall include, but not be limited to
establishing precautions to prevent its and its contractors' and subcontractors'
representatives, employees and agents from making, receiving, providing or
offering any payments, loans or other considerations or gifts or entertainment
of a material value. Material value shall be defined as anything having a value
of Two Hundred United States Dollars (U.S.$ 200) or more. BUILDER further agrees
that if it should be approached by anyone representing BUYER, its parent,
holding or affiliated companies who requests an item or gift of value, the
BUILDER will immediately notify BUYER. Breach of this provision shall be
considered a material

                                                                              42
<PAGE>

breach of contract entitling BUYER to terminate the Contract immediately upon
written notice. In addition, BUILDER shall:

         (a)      1.       take no action on behalf of BUYER in the performance
                           of work or rendition of services under this Contract
                           where the conduct of operations hereunder would
                           subject either party hereto to liability or penalty
                           under any and all laws, rules, regulations or decrees
                           of any governmental authorities;

                  2.       ensure that all invoices, final settlements, reports
                           and billings by BUILDER to BUYER reflect properly the
                           facts about all activities and transactions handled
                           for its accounts; and

                  3.       notify BUYER promptly upon discovery of any instance
                           where BUILDER has not complied with the requirements
                           of this Paragraph 1(a).

                  If the violation of this Paragraph 1(a) occurred prior to the
                  date of this Contract and resulted directly or indirectly in
                  BUYER's consent to enter into this Contract with BUILDER,
                  BUYER may, at BUYER's sole option, terminate this Contract at
                  any time, and notwithstanding any other provision of this
                  Contract pay no compensation or reimbursement to BUILDER
                  whatsoever for any work done after the date of termination.

         (b)      observe the Foreign Corrupt Practices Act of the United States
                  of America which prohibits directly or indirectly making any
                  offer, payment, promise to pay or authorizing the payment of
                  any money or anything of value to any government official,
                  political party or any candidate for political office for the
                  purpose of 1) influencing any act or decision of any such
                  official or party in his, her or its official capacity, 2)
                  inducing such person to do or omit to do any act in violation
                  of the lawful duty of such official, 3) securing any improper
                  advantage or 4) inducing such official or party to use his,
                  her or its influence with any government to influence any act
                  or decision of such government in order to assist BUYER in
                  obtaining or retaining business.

2.       Audit:

         The BUYER shall have the right to audit BUILDER to verify it is in
compliance with the requirements of Article XXV. In addition, at all reasonable
times during the continuation of this Contract and for a period of two (2) years
thereafter, BUYER's duly authorized representatives, including any third party
designated consultant, shall have access to, and the right to question BUILDER's
and its contractors' and subcontractors' and agents' personnel and to examine
their respective books, records, correspondence, instructions, plans, drawings,
receipts, vouchers, computer records, bid files of contractors and
subcontractors (both successful and unsuccessful), original estimates, change
order files, general ledger entries, payment vouchers and documentation of
business entertainment expenses pertaining to the services

                                                                              43
<PAGE>

hereunder for the purposes of auditing and verifying that the charges or costs
presented by BUILDER to BUYER for payment are in accordance with this Contract,
or for any other reasonable purpose. However, in no event shall BUYER have the
right to audit the composition of any lump sum prices, percentage overlays or
fixed sums. BUYER's representatives shall have the right to reproduce any of the
aforesaid documents for a period of two (2) years after the completion and
acceptance or termination of the work, or the fulfillment of any warranty
obligations arising under this Contract, whichever is later.

         BUILDER shall ensure that any subcontract entered into in accordance
with the terms of this Contract confers upon the BUYER the same audit rights in
relation to such contractor or subcontractor as are conferred upon BUYER by this
provision.

                        ARTICLE XXVI - PUBLICITY RELEASES

         BUILDER and its suppliers and subcontractors if any, shall not reveal
to others, except as required by law, through literature, brochures, or other
types of publicity releases any information regarding the work or its activities
or participation hereunder, without prior written approval from BUYER. The
content of any releases shall be approved in writing in advance by BUYER.

         IN WITNESS WHEREOF, the parties hereto have caused this Contract to be
duly executed effective the day and year first above written.

SANTA FE INTERNATIONAL CORPORATION       PPL SHIPYARD PTE. LTD.
             (BUYER)                            (BUILDER)

By: ___________________________          By: ___________________________

Name:  C. Stedman Garber, Jr.            Name: _________________________

Title: President                         Title: ________________________

Witness: ______________________          Witness: ______________________

Date Signed: __________________          Date Signed: __________________

                                                                              44
<PAGE>

                                   EXHIBIT "A"

                             CONTRACT SPECIFICATIONS

     Santa Fe International Corporation undertakes, upon the request of the
Securities and Exchange Commission, to file this Exhibit "A" that is not
included in the filing.
<PAGE>

                                   EXHIBIT "B"

                             CONTRACT DRAWINGS LIST

<Table>
<Caption>
DRAWING NO.                         ALT.    TITLE
-----------                         ----    -----
<S>                                 <C>     <C>
ARRANGEMENTS
7381-S-001                          H       General Arrangement - Outboard Profile
7381-S-003                          J       General Arrangement - Bow View
7381-S-004                          B       General Arrangement - Stern View
7381-S-010                          H       General Arrangement - Lower Hull
7381-S-011                          F       General Arrangement - Columns
7381-S-012                          H       General Arrangement - Upper Hull Tank Top
7381-S-013                          H       General Arrangement - Upper Hull Intermediate Deck
7381-S-014                          J       General Arrangement - Upper Hull Main Deck
7381-S-015                          F       General Arrangement - Upper Hull Substructure, & Shaker House
7381-S-016                          J       General Arrangement - Upper Hull Drill Floor (45700  ABL)
7381-S-017                          H       General Arrangement - Longitudinal Centerline
7381-S-018                          G       General Arrangement - Transverse Section At Centerline of Rig Lkg Aft
7381-S-030                          0       Lines Plan Lower Hull
7381-S-040-01                       0       Compartmentation, Capacity and Deck Load Plan
7381-S-040-02                       0       General Notes
7381-S-040-03                       0       Alterations
7381-S-040-04                       0       Table of Deck loads & Conversion Tables
7381-S-040-05                       0       Salt Water Ballast Tanks Capacity Table
7381-S-040-06                       0       Drill Water Ballast Tanks Capacity Table
7381-S-040-07                       0       Diesel Oil, Base Oil, Potable Water, & Brine Tanks     Capacity Table
7381-S-040-08                       0       Lower Hull
7381-S-040-09                       0       Upper Hull Tank Top
7381-S-040-10                       0       Upper Hull Intermediate Deck
7381-S-040-11                       0       Upper Hull Main Deck
7381-S-040-12                       0       Upper Hull Drill Floor
7381-S-040-13                       0       Caissons - 14.0m Flat
7381-S-040-14                       0       Caissons - 22.0m Flat
7381-S-040-15                       0       Upper Hull - Tank Top (PSF Decking Loading)
7381-S-040-16                       0       Upper Hull - Intermediate Deck (PSF Decking Loading)
7381-S-040-17                       0       Upper Hull - Main Deck (PSF Decking Loading)
</Table>

                             EXHIBIT "B" Page 1 of 4

<PAGE>

<Table>
<Caption>
DRAWING NO.                         ALT.    TITLE
-----------                         ----    -----
<S>                                 <C>     <C>
7381-S-050-1                        0       Hazardous Area Plan - Outboard Profile
7381-S-050-2                        0       Hazardous Area Plan - Main Deck
7381-S-050-3                        0       Hazardous Area Plan - Intermediate Deck & Helideck
7381-S-050-4                        0       Hazardous Area Plan - Tank Top
7381-S-050-5                        0       Hazardous Area Plan - Drill Floor
7381-S-060-1                        1       Watertight Integrity Plan
7381-S-060-2                        1       Watertight Integrity Plan
7381-S-090-1                        1       Primary Structural Plan (Upper Hull)
7381-S-090-2                        1       Primary Structural Plan (Columns & Pontoons)

STRUCTURAL
7381-S-100                          1       Typical Details - Legends & Schedules
7381-S-101-1                        1       Scantling Plan - Lower Hull Main Deck & Side Plating
7381-S-101-2                        1       Scantling Plan - Lower Hull Bottom Plating & Intermediate Plan
7381-S-102-1                        1       Scantling Plan - Lower Hull Transverse Frames 0, 2, 4, & 6
7381-S-102-2                        1       Scantling Plan - Lower Hull Transverse Frames 8, 9, 9A, 10, & 13A
7381-S-102-3                        1       Scantling Plan - Lower Hull Transverse Frames 12 -24
7381-S-102-4                        1       Scantling Plan - Lower Hull Transverse Frames 30 - 60
7381-S-103-1                        1       Scantling Plan - Lower Hull Longitudinal Sections
7381-S-103-2                        1       Scantling Plan - Lower Hull Longitudinal Sections
7381-S-104-1                        1       Scantling Plan - Lower Hull Typical Details
7381-S-120-1                        1       Scantling Plan - Column (stbd. aft) Shell Plating
7381-S-120-2                        1       Scantling Plan - Column (stbd. aft) Shell Plating
7381-S-120-3                        1       Scantling Plan - Column (stbd aft) Internal BHD
                                            Sections
7381-S-120-4                        1       Scantling Plan - Column (stbd. aft) Sections
7381-S-120-5                        1       Scantling Plan - Column (stbd. aft) Sections
7381-S-120-6                        1       Scantling Plan - Column (stbd. aft) Sections
7381-S-120-7                        1       Scantling Plan - Column (stbd. aft) Plans & Details
7381-S-120-8                        1       Scantling Plan - Column (stbd. aft) Plans & Details
7381-S-120-9                        1       Scantling Plan - Column (stbd. aft) Plans & Details
7381-S-122                          1       Scantling Plan - Bracing
7381-S-130-1                        1       Scantling Plan - Upper Hull Main Deck
7381-S-130-2                        1       Scantling Plan - Upper Hull Intermediate Deck
7381-S-130-3                        1       Scantling Plan - Upper Hull Tank Top
7381-S-130-4                        1       Scantling Plan - Upper Hull Bottom Plating
</Table>
                             EXHIBIT "B" Page 2 of 4

<PAGE>

<Table>
<Caption>
DRAWING NO.                         ALT.    TITLE
-----------                         ----    -----
<S>                                 <C>     <C>
7381-S-131-1                        1       Scantling Plan - Upper Hull Transverse Bhds & Girders
7381-S-131-2                        1       Scantling Plan - Upper Hull Transverse Bhds & Girders
7381-S-131-3                        1       Scantling Plan - Upper Hull Transverse Bhds & Girders
7381-S-132-1                        1       Scantling Plan - Upper Hull Longitudinal Bhds & Girders
7381-S-132-2                        1       Scantling Plan - Upper Hull Longitudinal Bhds & Girders
7381-S-132-3                        1       Scantling Plan - Upper Hull Longitudinal Bhds & Girders
7381-S-132-4                        1       Scantling Plan - Upper Hull Longitudinal Bhds & Girders
7381-S-132-5                        1       Scantling Plan - Upper Hull Longitudinal Bhds & Girders
7381-S-140-1                        0       Scantling Plan - Superstructure & Helideck
7381-S-140-2                        0       Scantling Plan - Superstructure & Helideck

PIPING
7381-S-200                          2       Piping Diagram - Drawing Index & Legend
7381-S-201-1                        2       Piping Diagram - Ballast & Stripping System Stbd Fwd Pump Rooms
7381-S-201-2                        2       Piping Diagram - Ballast & Stripping System Stbd Aft Pump Rooms
7381-S-201-3                        2       Piping Diagram - Ballast & Stripping System Port Aft Pump Rooms
7381-S-202                          1       Piping Diagram - Bilge System Port Side Shown
7381-S-210-1                        1       Piping Diagram - Salt Water Service & Salt Water/ Fresh Water Cooling System
7381-S-210-2                        1       Piping Diagram - Salt Water Service & Salt Water/ Fresh Water Cooling System
7381-S-211-1                        1       Piping Diagram - Diesel Generator System Stbd Engine Room
7381-S-211-2                        1       Piping Diagram - Diesel Generator System (Port Engine Room)
7381-S-220                          1       Piping Diagram - Fresh Water & Potable Water System
7381-S-221                          1       Piping Diagram - Drill Water System
</Table>

                             EXHIBIT "B" Page 3 of 4
<PAGE>

<Table>
<Caption>
DRAWING NO.                         ALT.    TITLE
-----------                         ----    -----
<S>                                 <C>     <C>
7381-S-222                          1       Piping Diagram - Fire Fighting System
7381-S-230-1                        1       Piping Diagram - Fuel Oil System
7381-S-230-2                        1       Piping Diagram - Fuel Oil System
7381-S-231                          1       Piping Diagram - Lube Oil System

DRAWING NO.                         ALT.    TITLE

7381-S-240                          1       Piping Diagram - Compressed Air System
7381-S-241                          2       Piping Diagram - Bulk Material System
7381-S-260                          1       Piping Diagram - High Pressure Mud  & Cement System
7381-S-261                          1       Piping Diagram - Low Pressure Mud System
7381-S-262                          1       Piping Diagram - Low Pressure Mud Discharge System
7381-S-263                          1       Piping Diagram - Low Pressure Mud Suction System
7381-S-280                          1       Piping Diagram - Hazardous & Non-hazardous Drains
7381-S-281                          1       Piping Diagram - Breathing Air System Electrical
7381-S-301-1                        2       One Line Diagram of Power System
7381-S-301-2                        2       One Line Diagram  Power System
7381-S-302-1                        1       Legend
7381-S-302-2                        1       One Line Diagram of 480 V Distribution (Ship Service)
7381-S-302-3                        1       One Line Diagram of 480 V Distribution (Ship Service)
7381-S-302-4                        1       One Line Diagram of 480 V Distribution (Ship Service)
7381-S-303-1                        1       One Line Diagram of 480 V Distribution (Pump Rooms)
7381-S-303-2                        1       One Line Diagram of 480 V Distribution (Pump Rooms)
7381-S-303-3                        1       One Line Diagram of 480 V Distribution (Pump Rooms)
7381-S-304-1                        1       One Line Diagram of 480 V Distribution Ventilation
7381-S-304-2                        1       One Line Diagram of 480 V Distribution  (Ventilation)
7381-S-304-3                        1       One Line Diagram of 480 V Distribution (Ventilation)
7381-S-305-1                        1       One Line Diagram of 480 V Distribution (Drilling)
7381-S-305-2                        1       One Line Diagram of 480 V Distribution (Drilling)
7381-S-306                          1       One Line Diagram of 480 V Distribution (Emergency)
7381-S-307                          1       One Line Diagram of 208/120V Distribution (Main)
7381-S-308                          1       One Line Diagram of 208/120V Distribution (Emergency)
7381-S-309                          1       One Line Diagram of 480V Distribution (Diesel Generators)

</Table>

                             EXHIBIT "B" Page 3 of 4

<PAGE>

                                   EXHIBIT "C"

          HEALTH, SAFETY & ENVIRONMENTAL MANAGEMENT SYSTEM REQUIREMENTS

         As a condition of the Contract, it is required that BUILDER provide and
use a Health, Safety & Environmental Management System (HSEMS). The HSEMS must
be in accordance with international industry standards and custom tailored for
BUILDER's use. If not already implemented, BUILDER must provide a formal plan
outlining how HSEMS will be implemented into the shipyard. This implementation
plan must cover all personnel ranging from upper management to those working on
the shop floor, and must cover all BUILDER employees and third party personnel.
This is to be achieved by use of a training program which ensures that all
personnel know of and understand HSEMS.

         Further, HSEMS must have standards and goals which can be reported upon
and audited, both by BUILDER and by third parties. Further, HSEMS must be
available in both Chinese and English languages, and other languages depending
upon the makeup of the workforce.

         Specifically, HSEMS must have the following components:

1.       A housekeeping program to eliminate such problems as electric lines,
         welding cables and oxygen and acetylene hoses being draped haphazardly
         from one level to the next in the work area and the protection thereof.
         The housekeeping program should also address other items such as
         scaffold piping, metal off-cuts and general debris in walkways.

2.       A scaffolding program which will be to international standards covering
         erection and inspection. The scaffolding program should also cover all
         equipment such as planking, tubing, clips, kick-boards and fastening
         items.

3.       A fall protection program which provides fall protection procedures and
         training for all relevant BUILDER personnel and third party personnel.
         It should also cover required fall protection equipment such as
         harnesses, lanyards, inertia reels, barricades and signage. This
         program should be covered by a documented inspection system covering
         fall protection equipment.

4.       A Permit to Work (PTW) system in accordance with international
         standards which will include training for all BUILDER and third party
         personnel. The PTW system will include but not be limited to: Hot Work
         Permits, Electrical and Mechanical Isolation Permits, Working at Height
         Permits, High Pressure Work Permits, Radioactive Source Usage Permits
         and Confined Space Entry Permits.

                             EXHIBIT "C" Page 1 of 2
<PAGE>

5.       A fire protection program adequate to protect all personnel and
         equipment. The fire protection program shall include basic firefighting
         training for all BUILDER and third party personnel which addresses:

         (a)      Basic use and knowledge of fire extinguishers and other
                  general firefighting equipment, and

         (b)      Standard procedures during fire emergencies.

6.       An emergency drills program which will include training to all BUILDER
         and third party personnel.

7.       A lifting equipment inspection program which will be subject to audit,
         and utilizes a period relevant color-coding system.

8.       A safety meeting system for all BUILDER and third party personnel which
         shall (i) be auditable and include weekly safety meetings, daily
         pre-tower/pre-task safety meetings, and (ii) encompass recording and
         posting of meeting minutes on notice boards in pertinent locations
         within the shipyard including work and cafeteria areas.

9.       A safety and informational signage program with the signs being to
         internationally recognized standards and/or utilizing multi-language
         and pictograms as required.

10.      An identification system (ID) for all BUILDER and third party personnel
         which shall include numbered photo ID tags and color-coding readily
         identifying personnel by their company, position and trade.

11.      A formal induction system for all BUILDER new-hire employees, visitors
         and third party personnel. Induction training to be provided before
         admittance to the shipyard work areas.

12.      Provision of adequate first response medical facilities on a 24-hour
         basis.

13.      Provision of personal protective equipment (PPE) to a recognized
         international standard for all BUILDER and third party personnel. PPE
         to include the provision and use of hard hats, safety glasses, steel
         toe safety footwear, work gloves and cover-alls/appropriate trousers
         and work shirts.

14.      An internal auditing program to monitor and record HSEMS performance
         and identify deficiencies. This program to include statistical data
         such as monthly man hours, lost time injury reporting, etc. The
         auditing program shall also include and record physical audits of the
         site operations.

                             EXHIBIT "C" Page 2 of 2

<PAGE>

                                   EXHIBIT "D"

                      SCHEDULE OF LABOR AND MATERIAL RATES

Schedule for determining labor, material and equipment prices for work over and
above work called for in the Contract to which this Exhibit is attached,
performed by BUILDER on a "Time and Material" basis or when "hired out" to
BUYER:

1.       GENERAL CONDITIONS & NOTES FOR SHIPYARD'S PERSONNEL - EXPLANATORY NOTES

         1.1      All personnel and services mentioned in this Schedule of Rates
                  are subject to their/its availability at the time of request.

         1.2      All personnel's rates are based on the labour law of Singapore
                  and are subject to changes which may result from changes
                  stipulated in the labour law.

         1.3      For all personnel supplied, working on daily rate, they shall
                  be supervised by the Client.

         1.4      The daily rate shall only apply to personnel working in PPL
                  Yard. In the event when the Client requires personnel to work
                  outside of PPL Yard, the rate shall be discussed.

                  For all personnel working Overseas, the rate shall be 2 1/2
                  times of the hourly rate given hereto.
                  Mobilisation/demobilization, lodging, accommodation, etc.
                  shall be for Client's responsibility and account.

         1.5      The minimum hire period shall be 8 normal working hours per
                  day for Skilled and Unskilled Labour.

                  Normal Working Day

                  Monday to Friday

                  0730 hr  -        1130 hr
                  1130 hr  -        1215 hr (Lunch)
                  1215 hr  -        1615 hr

                  For any time spent working on instruction outside of the
                  standard normal hours, the following rates shall be applied:

                             EXHIBIT "D" Page 1 of 10

<PAGE>

<Table>
<S>                        <C>                                         <C>

                  a.       Overtime

                           1615 hr  -       2100 hr                    Charge at 1.5 times
                           2100 hr  -       2400 hr                    Charge at 2.0 times
                           0000 hr  -       0800 hr (next day)         Charge at 3.0 times

                  b.       Saturday

                           0730 hr  -       1130 hr                  ) Charge at normal time

                           1130 hr  -       1300 hr (Lunch)          ) Charge at 1.5 times
                           1215 hr  -       1615 hr                  ) normal rate

                           1615 hr  -       2100 hr                  ) Charge at 2.0 times
                                                                     ) normal rate

                           2100 hr  -       0800 hr (next day)       ) Charge at 3.0 times
                                                                     ) normal rate

                  c.       Sunday/Public Holidays

                           0730 hr  -       1130 hr                  ) Charge at 2.0 times of
                           1130 hr  -       1215 hr (Lunch)          ) normal rate
                           1215 hr  -       1615 hr                  )

                           1615 hr  -       And above                ) Charge at 3.0 times
                                            (next day)               ) normal rate
</Table>

1.6      The rates shall be applied from the time the personnel is committed to
         the work or service until released, including mobilization, standby or
         demobilization.

1.7      Where work being carried out is suspended due to bad weather or
         technical reasons or conditions beyond the Shipyard's control, the
         rates shall continue to apply throughout such suspension.

1.8      The minimum number of personnel supply is two (2) men. Where labour
         supply exceeds six (6) men, a supervisor shall be required. This
         supervisor shall take instructions from the Client and the Client shall
         be responsible for any work carried out by the labour supplied.

1.9      The required minimum termination notice for personnel supply shall be
         twenty-four (24) hours.

                             EXHIBIT "D" Page 2 of 10

<PAGE>

1.10     PPL Yard or premises means PPL's and Jurong's shipyard facilities in
         Singapore.

                        SCHEDULE OF RATES FOR PERSONNEL

<Table>
<Caption>
                  CATEGORY                                                             HOURLY RATE(S$)
-------------------------------------------------------------------------------------------------------------------
<S>               <C>                                                                      <C>
         A.       Management:
                  1.       Superintendent/Engineer                                          90.00

         B.       Supervisory:
                  1.       Safety Officer/Fireman                                           45.00
                  2.       Technician                                                       45.00
                  3.       Draughtsman                                                      45.00
                  4.       Q.C. Technician                                                  45.00
                  5.       Foreman (All Trades)                                             45.00
                  6.       Assistant Engineer                                               60.00

         C.       Skilled Labour:
                  1.       Welder                                                           30.00
                  2.       Pipe Fitter/Steel Fitter                                         30.00
                  3.       HVAC Fitter                                                      30.00
                  4.       Mechanical Fitter                                                30.00
                  5.       Electrician                                                      30.00
                  6.       Machinist                                                        30.00
                  7.       Crane Operator                                                   30.00
                  8.       Fork-Lift Driver                                                 30.00
                  9.       Watchman                                                         30.00
                  10.      Carpenter                                                        30.00
                  11.      Painter                                                          30.00
                  12.      Cutter                                                           30.00
                  13.      Material Handler                                                 30.00
                  14.      Sandblaster                                                      30.00
                  15.      Rigger/Stager                                                    30.00
                  16.      Store-Keeper                                                     30.00
                  17.      Store Assistant                                                  20.00

         D.       Unskilled Labour:
                  1.       General Worker/Helper                                            18.00
                  2.       Cleaner                                                          18.00
                  3.       Grinder                                                          18.00
                  4.       Oiler                                                            18.00
</Table>

                             EXHIBIT "D" Page 3 of 10

<PAGE>

         NOTE:    Any tradesman not specified in this Schedule of Rates shall be
                  quoted separately on request.

2.       GENERAL CONDITIONS & NOTES FOR SHIPYARD'S EQUIPMENT - EXPLANATORY NOTES

         2.1      All equipment and services mentioned in this Schedule of Rates
                  are subject to their/its availability at the time of request.

         2.2      In the event of a necessity to hire an equipment from an
                  outside source, all mobilization and demobilization costs
                  shall be for the Client's account.

         2.3      Should any specialist or extra piece of equipment be required
                  to be hired in for an operation on Rental Rate, such costs
                  shall be recoverable from the Client at cost plus 15% service.

         2.4      The equipment's rates quoted are inclusive of all fuel and
                  refueling, spare parts, maintenance, consumables, use of
                  existing slings and shackles (if available).

         2.5      All rates exclude operators.

         2.6      Minimum hire period shall be four (4) hours unless specified.

         2.7      The Rates shall be applied from the time the equipment is
                  committed to the work or service until released.

         2.8      Where work being carried out on a Hourly or Daily Rate basis
                  is suspended due to bad weather, or technical reasons or
                  conditions beyond the Shipyard's control, the rates will
                  continue to apply throughout such suspension period.

         2.9      In case any preparation/modification work is required to the
                  existing piece of equipment to perform the work specified by
                  the Client, the hire rate shall be applied whilst this
                  preparation/modification is under way, such labour and
                  equipment involved to accomplish this will be charged under
                  the appropriate Schedule of Rates.

         2.10     All prices quoted are for work to be carried out within PPL's
                  premises only.

                             EXHIBIT "D" Page 4 of 10
<PAGE>

         2.11     All cut-off/remnant/etc. of steel materials generated from all
                  repair/modification/conversion works shall be for PPL's
                  property. PPL shall be responsible to clear off such steel
                  materials.

         2.12     PPL reserves the right to alter these prices in accordance
                  with any future material cost variations.

         2.13     All prices quoted are based on Normal Working Hours:

                  Monday to Friday: 0730-1130 hr
                                    1130-1215 hr (Lunch)
                                    1215-1615 hr

                  Saturday:         0730-1130 hr

         2.14     PPL Yard or premises means PPL's or Jurong's shipyard
                  facilities in Singapore.

                             EXHIBIT "D" Page 5 of 10

<PAGE>

                          SCHEDULE OF RATES FOR CRANES

<Table>
<Caption>
DESCRIPTION                                 CAPACITY                               HOURLY RATE (S$)
-------------------------------------------------------------------------------------------------------------------
<S>                                         <C>                                    <C>
Types of Cranes:

Crawler/Truck Crane                         20-50 Ton                                          200.00

Link Belt Crawler Crane                     80-100 Ton                                         300.00

Link Belt Crawler Crane                     150 Ton                                            600.00

Manitowoc Crawler Crane                     200 Ton                                          1,000.00

Manitowoc Crawler Crane                     350 Ton                                          1,250.00

Manitowoc Platform Rinker                   600 Ton                                    On Application
</Table>

NOTE: ALL OVERTIME ON CRANES WILL BE CHARGED AT FLAT HOURLY RATE.

                         SCHEDULE OF RATES FOR EQUIPMENT

<Table>
<Caption>
TYPE OF EQUIPMENT                                                                      DAILY RATE(S$)
-------------------------------------------------------------------------------------------------------------------
<S>                                                                                    <C>
Air Compressor (Portable) - Diesel Driven
         125 cfm                                                                                70.00
         250 cfm                                                                               225.00
         600 cfm                                                                               360.00
         600 cfm (electric)                                                                    300.00
</Table>

                             EXHIBIT "D" Page 6 of 10
<PAGE>

<Table>
<S>                                                                                             <C>
Welding Set
         Welding Transformer/Rectifier                                                          60.00

Fork-Lift
         Above 3.5 Ton                                                                         260.00
         Up to 3.5 Ton                                                                         195.00

Gensets:
         350 Kva (excluding supply of diesel)                                                  450.00

Low Loader:                                                                                    420.00
</Table>

3.       GENERAL CONDITIONS & NOTES FOR SHIPYARD SERVICES

         3.1      All prices quoted are in Singapore Dollars and based on Normal
                  Working Hours:

                  Monday to Friday:         0730 hr - 1130 hr
                                            1130 hr - 1215 hr (Lunch)
                                            1215 hr - 1615 hr

                  Saturday:                 0730 hr - 1130 hr

         3.2      All prices quoted are for work to be carried out in PPL's
                  premises only.

         3.3      PPL reserves the right to alter these prices in accordance
                  with any future wage or material cost variation.

         3.4      PPL Yard or premises means PPL's or Jurong's shipyard
                  facilities in Singapore.

                             EXHIBIT "D" Page 7 of 10
<PAGE>

                                  YARD SERVICES
-------------------------------------------------------------------------------

1.       Harbour Tug Services (between 200 to 350 HP):

<Table>
<S>                                                                                          <C>
         Per Call:         a.       Mobilisation                                             S$150.00
                           b.       Demobilisation                                           S$150.00
                           c.       In operation (per tug per hr)                            S$150.00
                           d.       Minimum operating charge                                 S$450.00
</Table>

2.  Wharfage Per Day:

                                              Wharf-Front           Shore-Line

    a.     Jack-Up Rig/Accomodation Unit      S$1,000.00             S$350.00

    b.     Semi-Submersible                   S$1,350.00

    c.     Ship/Tugboat                       S$5.00/m length of LOA per day
                                              (minimum charge of S$500/day)

    d.     Barge                              S$4.00/m length of LOA per day
                                              (minimum charge of S$400/day)

3.       Loading and unloading of cargo/      S$100/truck (within the yard)
         equipment/etc. charges (alongside    to a maximum of S$1,000/day
         PPL's wharf or within the yard)

                             EXHIBIT "D" Page 8 of 10
<PAGE>

4.       Mooring and Unmooring

         a.       Jack-Up Rig                     S$800.00/moor or unmoor

         b.       Semi-Submersible/Ship           S$800.00/moor or unmoor

         c.       Barge                           S$400.00/moor or unmoor

5.       Water Supply

         a.       Fireline                        S$100.00/hose per day

         b.       Fresh Water
                  (below 200 m.ton per month)     S$7.50/m.ton
                  (above 200 m.ton per month)     S$10.00/m.ton

         c.       Labour Charges for connection   S$300.00/operation
                  and disconnection of hose

6.       Electricity Supply

         a.       Shore power for 50 Hz only      S$0.80/kwh

         b.       Labour Charges for connection/  S$500/operation
                  disconnection of cable

7.       Gas Free

         a.       Governmental Chemist            Cost + 15% service charge

         b.       Shipyard Safety Personnel       S$200/day

8.       Garbage Disposal                         S$200/day

9.       General Gate Security                    S$50/man per day

10.      Spacer Barge (PPL's own spacer barge)    S$150/day

11.      Gangway                                  S$100/day

12.      Storage Per Month

         a.       Ordinary open space             S$4.00/sq.m.

         b.       Open hard-core area             S$5.00/sq.m.

                             EXHIBIT "D" Page 9 of 10
<PAGE>

         c.       Open hard-core area
                  c/w gantry crane          S$6.00/sq.m.

         d.       Covered workshop          S$7.00/sq.m.

         e.       Warehouse                 S$25.00/sq.m.

         f.       Office space              S$43.00/sq.m.

                             EXHIBIT "D" Page 10 of 10
<PAGE>

                                   EXHIBIT "E"

                       PROTOCOL OF DELIVERY AND ACCEPTANCE
                              FOR HULL NO. (P.2003)

KNOW ALL MEN BY THESE PRESENTS:

         That PPL Shipyard Pte. Ltd., ("BUILDER") has constructed and sold and
by these presents does grant, convey and deliver to _________________________
("BUYER") all right, title, and interest to the semi-submersible drilling vessel
bearing BUILDER'S HULL NO. P.2003 (the "Vessel") pursuant to a Contract for the
Construction and Sale of One Semi-Submersible Drilling Unit, effective April 11,
2001, as currently amended, and all schedules thereto (the "Contract") and that
the undersigned, as a duly authorized representative of BUYER, does hereby on
its behalf accept delivery of the Vessel as aforesaid, subject to the following.

         Nothing contained in this document shall in any way affect, diminish,
impair or prejudice any of the obligations, undertakings, guarantees, warranties
or liabilities of BUILDER pursuant to the provisions of the Contract, as
currently amended, which are applicable after delivery.

         Signed at __________________________________________________ at
________________hours on _____________________, 20__.

PPL SHIPYARD PTE. LTD.                      ______________________________
       (BUILDER)                                       (BUYER)

By:      ______________________             By:      _____________________

Name:    ______________________             Name:    _____________________

Title:   ______________________             Title:   _____________________

Witness: ______________________             Witness: _____________________

                             EXHIBIT "E" Page 1 of 1

<PAGE>

                                   EXHIBIT "F"

                              PERFORMANCE GUARANTEE
                     CONTRACT FOR THE CONSTRUCTION AND SALE
                       OF A SEMI-SUBMERSIBLE DRILLING UNIT
                                (HULL NO. P.2003)
                           DATED ______________, 2001

         THIS PERFORMANCE GUARANTEE AGREEMENT (hereinafter referred to as the
"Guarantee") is by and between SEMBCORP MARINE LIMITED whose registered office
is located at ________________________________________ (hereinafter referred to
as "Guarantor") of the one part and SANTA FE INTERNATIONAL CORPORATION whose
registered office is located at 5420 LBJ Freeway, Suite 1100, Dallas, Texas
75240-2648 (hereinafter referred to as "Company") of the second part.

WHEREAS

         The Guarantor is the owner of shares of PPL SHIPYARD PTE. LTD.
(hereinafter referred to as the "Subsidiary") which is to supply certain goods
and/or services under a Contract for the Construction and Sale of a
semi-submersible drilling unit (Hull No. P.2003) dated as of 11 April 2001 with
Company (hereinafter referred to as the "Contract").

         Company is desirous of Guarantor guaranteeing the due and proper
performance of the Subsidiary's obligations and duties under said Contract and
otherwise, and Guarantor is willing to grant the Guarantee hereinafter provided.

NOW IT IS HEREBY AGREED as follows:

1.       In consideration of Company entering into said Contract with the
         Subsidiary, Guarantor hereby covenants and agrees unconditionally with
         Company, its successors and assigns that:

         (a)      The Subsidiary shall properly, diligently and in good time
                  observe the provisions of and perform and discharge each of
                  its obligations contained in said Contract and any supplements
                  or amendments thereto, and shall supply all the goods and
                  services named therein to the standard of workmanship, skill,
                  care and safety (and to the time-scales) therein expressly
                  laid down, or insofar as not expressly laid down, then to the
                  standards demanded by the proper exercise of its skills as a
                  competent and workmanlike contractor proceeding with all due
                  expedition.

         (b)      If the Subsidiary defaults in whole or in part in any of the
                  foregoing obligations, Guarantor shall forthwith remedy any
                  remediable breaches and promptly undertake, and diligently
                  perform and discharge the foregoing obligations as if
                  Guarantor were the original obligant from the outset, and all
                  on the same terms and conditions as in the Contract.

                             EXHIBIT "F" Page 1 of 3
<PAGE>

         (c)      Guarantor shall pay to Company on demand all monies due and
                  owing by the Subsidiary to Company under the Contract or
                  pursuant to any claim made by Company relating to or arising
                  out of the Contract.

         (d)      This Guarantee shall be a primary obligation of Guarantor and
                  accordingly Company shall not be obliged before enforcing this
                  Guarantee to take any action in any court against the
                  Subsidiary, to make any claim against or any demand of the
                  Subsidiary, to enforce any other security held by it in
                  respect of the obligations of the Subsidiary under the
                  Contract or to exercise any diligence against the Subsidiary.

         (e)      Guarantor hereby agrees that its obligations hereunder shall
                  not be in any way discharged or impaired by any time or
                  indulgence granted to the Subsidiary in relation to all or any
                  of the obligations of the Subsidiary under the Contract or any
                  variation of or supplement or amendment to the Contract
                  whether or not Guarantor shall be party to or cognizant of the
                  same or by any other circumstance which would or might (but
                  for this provision) constitute a legal or equitable discharge
                  or defense of a guarantor.

         (f)      This Guarantee shall be a continuing guarantee which shall be
                  and continue in full force and effect irrespective of the
                  legality, validity or enforceability of any other provision of
                  the Contract and notwithstanding the dissolution of the
                  Subsidiary or any change in its status, function, control or
                  ownership until all obligations to be performed or discharged
                  by the Subsidiary under the Contract the performance or
                  discharge of which are guaranteed by Guarantor as aforesaid
                  have been performed and discharged and shall be in addition to
                  and not in substitution for or derogation of any other
                  security held by any person for whose benefit this Guarantee
                  is given in respect of the obligations of the Subsidiary under
                  the Contract.

         (g)      Guarantor hereby agrees as a primary obligation to defend,
                  indemnify and hold harmless Company and its successors and
                  assigns, including the vessel to be built pursuant to the
                  Contract and all other vessels in the same or associated
                  ownership, from and against liability for any loss incurred by
                  them as a result of the Contract being or becoming void,
                  voidable or unenforceable for any reason wholly attributable
                  to the Subsidiary the amount of such loss being the amount
                  which they would otherwise have been entitled to recover from
                  the Subsidiary.

2.       This Guarantee shall be in addition to, and not in substitution for,
         any rights or remedies that Company may have against the Subsidiary
         arising under said Contract, or otherwise.

                             EXHIBIT "F" Page 2 of 3
<PAGE>

3.       This Guarantee shall be valid throughout the term of the Contract
         including any extensions thereof, and for a period of eighteen (18)
         months following the actual date of delivery and acceptance of the
         vessel to Company as contemplated by the Contract.

4.       This Guarantee shall be governed by English law excluding, however, any
         of its conflicts of law rules or other provisions which may refer to
         the laws of another jurisdiction. Any claim, dispute or difference
         arising out of this Guarantee shall be finally resolved in accordance
         with the provisions of Article XVII - Dispute Resolution of the
         Contract.

         For the purposes of any proceedings pursuant to the preceding
         paragraph, the Guarantor hereby irrevocably appoints the following as
         its agent within England for the service of process:

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

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

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

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

5.       This Guarantee is effective from the effective date of the Contract
         irrespective of the date or dates of execution hereof.

         Guarantor warrants its power to enter into this Agreement and that it
has obtained all necessary approvals to do so.

         IN WITNESS WHEREOF Guarantor has executed this Guarantee on the _____
day of __________________, 2001.

Signed and sealed for and on behalf of SEMBCORP MARINE LIMITED

Signature:        ____________________________________

Name (Printed):   ____________________________________

Position:         ____________________________________

Date:             ____________________________________

Witnessed by:     ____________________________________

Name (Printed):   ____________________________________

[CORPORATE SEAL]

                             EXHIBIT "F" Page 3 of 3
<PAGE>

                                   EXHIBIT "G"

                                   IRREVOCABLE
                            STAND-BY LETTER OF CREDIT

                      NO. _________________________________

Santa Fe International Corporation
5420 LBJ Freeway
Suite 1100
Dallas, TX 75240-2648

Dear Sirs:

         We hereby establish this Irrevocable Stand-by Letter of Credit in your
favor in connection with the Contract for the Construction and Sale of One
Semi-Submersible Drilling Unit, Hull No. P.2003, effective April 11, 2001,
between PPL Shipyard Pte. Ltd. and you for the account of PPL Shipyard Pte. Ltd.
up to the aggregate amount of Eight Million Seven Hundred Forty-Eight Thousand
United States Dollars (U.S.$8,748,000) available for payment against your draft
marked with the above credit number accompanied by a certificate (the "Default
Certificate") signed by you reading as follows:

         "Pursuant to your Letter of Credit No. (#####) dated (MM DD YY), in
         favor of Santa Fe International Corporation ("Buyer"), we hereby
         certify that the amount of the attached draft ($$$$$) is due and
         payable to Buyer in connection with the Contract for the Construction
         and Sale of One Semi-Submersible Drilling Unit, Hull No. P.2003,
         effective April 11, 2001."

         The expiry date ("Expiry Date") of this Letter of Credit shall be
October 25, 2004, or the 380th day after the actual date of delivery and
acceptance of the Drilling Unit, whichever is the earlier, provided that if the
380th day after the actual date of delivery and acceptance of the Drilling Unit
does not occur by September 25, 2004, and PPL Shipyard Pte. Ltd. has not
obtained an extension of this Stand-by Letter of Credit, you may consider the
full amount of this Stand-by Letter of Credit to be due and payable. The
evidence of actual date of delivery and acceptance of the Drilling Unit shall be
by means of presentation of the signed and dated PROTOCOL OF DELIVERY AND
ACCEPTANCE as attached hereto.

         We hereby agree with the drawers, endorsers and bonafide holders of all
drafts drawn under and in compliance with the terms of this Stand-by Letter of
Credit that such drafts will be duly honored upon presentation to drawee on or
before the Expiry Date at our offices located at _________________________,
U.S.A. Partial draws are allowed with total drawings not to exceed the aggregate
amount of this Letter of Credit.

                             EXHIBIT "G" Page 1 of 2
<PAGE>

         Except as otherwise expressly stated herein, this Letter of Credit is
subject to the Uniform Customs and Practice for Documentary Credits (1993
Revision), International Chamber of Commerce Publication No. 500 (hereinafter
called the "UCPDC") and shall be supplementally governed by the laws of New
York, U.S.A. to the extent that they do not conflict with the UCPDC.

                             EXHIBIT "G" Page 2 of 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]