Document:

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                                                                     EXHIBIT 4.3

                            PRIDE INTERNATIONAL, INC.

                                       and

                               JPMORGAN CHASE BANK

                                              Trustee.

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

                          SIXTH SUPPLEMENTAL INDENTURE

                           Dated as of April 28, 2003

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

                           Supplementing the Indenture
                                   dated as of
                                   May 1, 1997

                    3 1/4% CONVERTIBLE SENIOR NOTES DUE 2033

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                                TABLE OF CONTENTS

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<S>                                                                                                   <C>
ARTICLE 1 SUPPLEMENT OF THE ORIGINAL INDENTURE...................................................      2

   Section 1.01.        Supplement to Article One of the Original Indenture......................      2
   Section 1.02.        Supplement to Article Two of the Original Indenture......................     18
   Section 1.03.        Supplement to Article Three of the Original Indenture....................     18
   Section 1.04.        Supplement to Article Four of the Original Indenture.....................     24
   Section 1.05.        Supplement to Article Five of the Original Indenture.....................     25
   Section 1.06.        Supplement to Article Eight of the Original Indenture....................     27
   Section 1.07.        Supplement to Article Nine of the Original Indenture.....................     29
   Section 1.08.        Supplement to Article Ten of the Original Indenture......................     30
   Section 1.09.        Supplement to Article Eleven of the Original Indenture...................     36
   Section 1.10.        New Article Fourteen.....................................................     51
   Section 1.11.        New Article Fifteen......................................................     57
   Section 1.12.        Effect of Article One....................................................     74

ARTICLE 2 THE NOTES..............................................................................     75

   Section 2.01.        Form and Terms...........................................................     75
   Section 2.02.        Designation and Amount...................................................     75
   Section 2.03.        Registered Securities....................................................     75

ARTICLE 3 REPRESENTATIONS OF THE COMPANY.........................................................     75

   Section 3.01.        Authority of the Company.................................................     75
   Section 3.02.        Truth of Recitals and Statements.........................................     75

ARTICLE 4 CONCERNING THE TRUSTEE.................................................................     76

   Section 4.01.        Acceptance of Trusts.....................................................     76
   Section 4.02.        No Responsibility of Trustee for Recitals, Etc...........................     76

ARTICLE 5 MISCELLANEOUS PROVISIONS...............................................................     76

   Section 5.01.        Relation to the Original Indenture.......................................     76
   Section 5.02.        Meaning of Terms.........................................................     76
   Section 5.03.        Counterparts of Supplemental Indenture...................................     77
   Section 5.04.        Governing Law............................................................     77
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         THIS SIXTH SUPPLEMENTAL INDENTURE, dated as of April 28, 2003 between
Pride International, Inc., a Delaware corporation (successor by merger to Pride
International, Inc., a Louisiana corporation formerly known as Pride Petroleum
Services, Inc.) (the "Company"), and JPMorgan Chase Bank (formerly known as The
Chase Manhattan Bank), a New York banking corporation, as Trustee (the
"Trustee") under the Indenture (as defined below),

                              W I T N E S S E T H:

         WHEREAS, the Company has duly authorized the issuance from time to time
of its unsecured debentures, notes or other evidences of indebtedness (the
"Securities"), which are to be issued in one or more series, and the Company has
heretofore made, executed and delivered to the Trustee its Indenture dated as of
May 1, 1997 (the "Original Indenture") pursuant to which the Securities are
issuable;

         WHEREAS, the Original Indenture has been previously supplemented in
connection with (a) the issuance of the Company's first series of Securities
designated as its 9 3/8% Senior Notes due 2007, its second series of Securities
designated as its 10% Senior Notes due 2009, its third series of Securities
designated as its Zero Coupon Convertible Senior Debentures Due 2021, and its
fourth series of Securities designated as its 2 1/2% Convertible Senior Notes
Due 2007, pursuant to the First Supplemental Indenture dated as of May 1, 1997,
the Second Supplemental Indenture dated as of May 26, 1999, the Third
Supplemental Indenture dated as of January 16, 2001 and the Fifth Supplemental
Indenture dated as of March 4, 2002, respectively, each between the Company and
the Trustee and (b) the merger of Pride International, Inc., a Louisiana
corporation ("Pride Louisiana"), into the Company and the succession, pursuant
to the Fourth Supplemental Indenture dated as of September 10, 2001, between the
Company and the Trustee, by the Company to the position of Pride Louisiana under
the Indenture;

         WHEREAS, Sections 201, 301 and 901 of the Original Indenture provide
that the form or terms of any series of Securities may be established in an
Indenture supplemental thereto, and the Company desires to establish in this
Sixth Supplemental Indenture both the form and terms of a series of Securities
designated as its 3 1/4% Convertible Senior Notes Due 2033 (the "Notes");

         WHEREAS, Section 901 of the Original Indenture further provides that
under certain conditions the Company and Trustee, may, without the consent of
any Holders, from time to time and at any time, enter into an indenture or
indentures supplemental thereto, for the purposes, inter alia, of adding to the
covenants of the Company for the benefit of the Holders of all or any series of
Securities, and adding any additional Events of Default, and the Company desires
by means of this Sixth Supplemental Indenture to add to its covenants for the
sole benefit of the Holders of the Notes and to add certain additional Events of
Default, also solely for the benefit of such Holders; and

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         WHEREAS, all things necessary to authorize the execution and delivery
of this Sixth Supplemental Indenture, to establish the Notes as provided for in
this Sixth Supplemental Indenture, and to make the Original Indenture, as
supplemented by this Sixth Supplemental Indenture and as otherwise supplemented
with applicability with respect to the Notes (the Original Indenture, as so
supplemented, being sometimes referred to herein as the "Indenture"), a valid
agreement of the Company, in accordance with its terms, have been done;

         NOW, THEREFORE, THIS SIXTH SUPPLEMENTAL INDENTURE WITNESSETH that for
and in consideration of the premises and the purchase of the Notes by the
Holders, the Company and the Trustee mutually covenant and agree, solely for the
equal and proportionate benefit of the respective Holders from time to time of
Notes, as follows:

                                   ARTICLE 1

                      SUPPLEMENT OF THE ORIGINAL INDENTURE

         Section 1.01. Supplement to Article One of the Original Indenture.
Section 101 of the Original Indenture is supplemented or superseded with respect
to the Notes, in the case of definitional paragraphs that may be inconsistent,
by inserting therein, in alphabetical order, the following definitional
paragraphs:

                  "Adjusted Net Assets" of a Subsidiary Guarantor at any date
         shall mean the amount by which the Fair Value of the properties and
         assets of such Subsidiary Guarantor exceeds the total amount of
         liabilities, including, without limitation, contingent liabilities
         (after giving effect to all other fixed and contingent liabilities
         incurred or assumed on such date), but excluding liabilities under its
         Subsidiary Guarantee, of such Subsidiary Guarantor at such date.

                  "Affiliate" of any specified Person means another Person
         directly or indirectly controlling or controlled by or under direct or
         indirect common control with such specified Person. For purposes of
         this definition, "control" (including, with correlative meanings, the
         terms "controlling," "controlled by" and "under common control with"),
         as used with respect to any Person, shall mean the possession, directly
         or indirectly, of the power to direct or cause the direction of the
         management or policies of such Person, whether through the ownership of
         voting securities, by agreement or otherwise; provided, however, that
         beneficial ownership of 10% or more of the Voting Stock of a Person
         shall be deemed to be control.

                  "Applicable Stock Price" means, in respect of a Conversion
         Date, the average of the Sale Prices of a share of Common Stock over
         the five Trading Day period starting the third Trading Day following
         such Conversion Date.

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                  "Average Life" means, as of any date, with respect to any debt
         security or preferred stock, the quotient obtained by dividing (i) the
         sum of the products of (x) the number of years from such date to the
         date of each scheduled principal payment (including any sinking fund or
         mandatory redemption payment requirements) of such debt security or
         preferred stock multiplied in each case by (y) the amount of such
         principal payment by (ii) the sum of all such principal payments.

                  "Average Sale Price" has the meaning specified in Section
         1501.

                  "Capital Lease Obligation" means, at any time as to any Person
         with respect to any Property leased by such Person as lessee, the
         amount of the liability with respect to such lease that would be
         required at such time to be capitalized and accounted for as a capital
         lease on the balance sheet of such Person prepared in accordance with
         GAAP. For purposes of Section 1009, a Capital Lease Obligation shall be
         deemed secured by a Lien on the Property being leased.

                  "Capital Stock" in any Person means any and all shares,
         interests, partnership interests, participations or other equivalents
         in the equity interest (however designated) in such Person and any
         rights (other than debt securities convertible into an equity
         interest), warrants or options to acquire an equity interest in such
         Person.

                  The term "certificated," when referring to the form of Notes,
         shall mean Notes in the form of Registered Securities under the
         Indenture other than Notes in global form, including as Book-Entry
         Securities or otherwise.

                  "Change in Control" means (i) a determination by the Company
         that any Person or group (as defined in Section 13(d)(3) or 14(d)(2) of
         the Securities Exchange Act of 1934, as amended (the "Exchange Act"))
         other than a Parent Holding Company has become the direct or indirect
         beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of
         more than 50% of the Voting Stock of the Company; (ii) the Company is
         merged with or into or consolidated with another Person and,
         immediately after giving effect to the merger or consolidation, less
         than 50% of the outstanding voting securities entitled to vote
         generally in the election of directors or persons who serve similar
         functions of the surviving or resulting Person are then beneficially
         owned (within the meaning of Rule 13d-3 of the Exchange Act) in the
         aggregate by (x) the stockholders of the Company immediately prior to
         such merger or consolidation, or (y) if the record date has been set to
         determine the stockholders of the Company entitled to vote on such
         merger or consolidation, the stockholders of the Company as of such
         record date, or (z) a Parent Holding Company; (iii) the Company, either
         individually or in conjunction with one or more Subsidiaries, sells,
         conveys, transfers or leases, or the Subsidiaries sell, convey,
         transfer or lease, all or

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         substantially all of the assets of the Company and the Subsidiaries,
         taken as a whole (either in one transaction or a series of related
         transactions), including Capital Stock of the Subsidiaries, to any
         Person (other than a Parent Holding Company or a Wholly Owned
         Subsidiary of the Company); (iv) the liquidation or dissolution of the
         Company; or (v) the first day on which a majority of the individuals
         who constitute the Board of Directors are not Continuing Directors.

                  "Change in Control Purchase Date" has the meaning specified in
         Section 1110(a).

                  "Change in Control Purchase Price" has the meaning specified
         in Section 1110(a).

                  "Common Stock" means Common Stock, par value $.01 per share,
         of the Company as it exists on the Issue Date or any other Capital
         Stock of the Company into which such Common Stock shall be reclassified
         or changed.

                  "Company Notice" has the meaning specified in Section 1117(d).

                  "Company Notice Date" has the meaning specified in Section
         1117(d).

                  "Consolidated Current Liabilities" of any Person means, as of
         any date, the total liabilities (including tax and other proper
         accruals) of such Person and its subsidiaries (other than Non-Recourse
         Subsidiaries) on a consolidated basis at such date which may properly
         be classified as current liabilities in accordance with GAAP, after
         eliminating (1) all intercompany items between such Person and its
         subsidiaries (other than Non-Recourse Subsidiaries) or between
         subsidiaries (other than between a subsidiary that is not a
         Non-Recourse Subsidiary and Non-Recourse Subsidiaries) and (2) all
         current maturities of long-term Indebtedness.

                  "Consolidated Net Tangible Assets" of any Person means, as of
         any date, Consolidated Tangible Assets of such Person at such date,
         after deducting therefrom (without duplication of deductions) all
         Consolidated Current Liabilities of such Person at such date.

                  "Consolidated Tangible Assets" of any Person means, as of any
         date, the consolidated assets of such Person and its subsidiaries
         (other than Non-Recourse Subsidiaries) at such date, after eliminating
         intercompany items between such Person and its subsidiaries (other than
         Non-Recourse Subsidiaries) or between subsidiaries (other than between
         a subsidiary that is not a Non-Recourse Subsidiary and Non-Recourse
         Subsidiaries) and after deducting from such total (i) the net book
         value of all assets that would be

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         classified as intangibles under GAAP (including, without limitation,
         goodwill, organizational expenses, trademarks, trade names, copyrights,
         patents, licenses and any rights in any thereof) and (ii) any prepaid
         expenses, deferred charges and unamortized debt discount and expense,
         each such item determined in accordance with GAAP.

                  "Continuing Director" means an individual (i) who is a member
         of the full Board of Directors and (ii) either (A) who was a member of
         the Board of Directors on the Issue Date or (B) whose nomination for
         election or election to the Board of Directors was approved by vote of
         at least two-thirds of the directors then still in office who were
         either directors on the Issue Date or whose election or nomination for
         election was previously so approved.

                  "Conversion Agent" means an office or agency where Notes may
         be presented for conversion pursuant to the terms and conditions of the
         Sixth Supplemental Indenture.

                  "Conversion Date" has the meaning specified in Section 1502.

                  "Conversion Price" has the meaning specified in Section 1501.

                  "Conversion Rate" has the meaning specified in Section 1501.

                  "Currency Hedge Obligations" means, at any time as to any
         Person, the obligations of such Person at such time which were incurred
         in the ordinary course of business pursuant to any foreign currency
         exchange agreement, option or future contract or other similar
         agreement or arrangement designed to protect against or manage such
         Person's or any of its subsidiaries' exposure to fluctuations in
         foreign currency exchange rates.

                  "Exchange Act" has the meaning specified within the definition
         of "Change in Control" and also includes any successor statute.

                  "Ex-Dividend Time" has the meaning specified in Section 1501.

                  "Fair Market Value" means the fair market value as determined
         in good faith by the Board of Directors.

                  "Fair Value" means the price that could be negotiated in an
         arm's-length free market transaction, for cash, between a willing
         seller and a willing buyer, neither of whom is under undue pressure or
         compulsion to complete the transaction.

                  "GAAP" means, at any date, United States generally accepted
         accounting principles, consistently applied, as set forth in the
         opinions of the Accounting Principles Board of the American Institute
         of Certified Public

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         Accountants ("AICPA") and statements of the Financial Accounting
         Standards Board, or in such other statements by such other entity as
         may be designated by the AICPA, that are applicable to the
         circumstances as of the date of determination; provided, however, that
         all calculations made for purposes of determining compliance with the
         provisions set forth in Sections 1008, 1009 and 1010 shall utilize GAAP
         in effect at the Issue Date.

                  "Global Note" has the meaning specified in Section 305(b).

                  "Indebtedness" as applied to any Person means, at any time,
         without duplication, (i) any obligation of such Person, contingent or
         otherwise, for borrowed money; (ii) any obligation of such Person
         evidenced by bonds, debentures, notes or other similar instruments;
         (iii) any obligation of such Person for all or any part of the purchase
         price of Property or for the cost of Property constructed or of
         improvements thereto (including any obligation under or in connection
         with any letter of credit related thereto), other than accounts payable
         included in current liabilities incurred in respect of Property and
         services purchased in the ordinary course of business; (iv) any
         obligation of such Person upon which interest charges are customarily
         paid (other than accounts payable incurred in the ordinary course of
         business); (v) any obligation of such Person under conditional sale or
         other title retention agreements relating to purchased Property (other
         than accounts payable incurred in the ordinary course of business);
         (vi) any obligation of such Person issued or assumed as the deferred
         purchase price of Property (other than accounts payable incurred in the
         ordinary course of business); (vii) any Capital Lease Obligation;
         (viii) any obligation of any other Person secured by (or for which the
         obligee thereof has an existing right, contingent or otherwise, to be
         secured by) any Lien on Property owned or acquired, whether or not any
         obligation secured thereby has been assumed, by such Person, the amount
         of such obligation being deemed to be the lesser of the value of such
         Property or the amount of the obligation so secured; (ix) any
         obligation of such Person in respect of any letter of credit supporting
         any obligation of any other Person; (x) the maximum fixed repurchase
         price of any Redeemable Stock of such Person (or if such Person is a
         subsidiary, any preferred stock of such Person); (xi) any Interest Swap
         Obligation or Currency Hedge Obligation of such Person; and (xii) any
         obligation that is in economic effect a guarantee, regardless of its
         characterization (other than an endorsement in the ordinary course of
         business or any performance guarantee), with respect to any
         Indebtedness of another Person, to the extent guaranteed. For purposes
         of the preceding sentence, the maximum fixed repurchase price of any
         Redeemable Stock or subsidiary preferred stock that does not have a
         fixed repurchase price shall be calculated in accordance with the terms
         of such Redeemable Stock or subsidiary preferred stock as if such
         Redeemable Stock or subsidiary preferred stock were repurchased on any
         date on which Indebtedness shall be required to be determined pursuant
         to this Indenture; provided, however, that if such Redeemable Stock or

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         subsidiary preferred stock is not then permitted to be repurchased, the
         repurchase price shall be the book value of such Redeemable Stock or
         subsidiary preferred stock. The amount of Indebtedness of any Person at
         any date shall be (x) the outstanding book value at such date of all
         unconditional obligations as described above and (y) the maximum
         liability of any such contingent obligation at such date.

                  "Indenture" has the meaning specified in the recitals to the
         Sixth Supplemental Indenture.

                  "Initial Purchaser" means Morgan Stanley & Co. Incorporated,
         as initial purchaser under the Purchase Agreement.

                  "Interest Swap Obligation" means, with respect to any Person,
         the obligation of such Person pursuant to any interest rate swap
         agreement, interest rate cap, collar or floor agreement or other
         similar agreement or arrangement designed to protect against or manage
         such Person's or any of its subsidiaries' exposure to fluctuations in
         interest rates.

                  "Investment" means, with respect to any Person, any investment
         in another Person, whether by means of a share purchase, capital
         contribution, loan, advance (other than advances to employees for
         moving and travel expenses, drawing accounts and similar expenditures
         or prepayments or deposits in the ordinary course of business) or
         similar credit extension constituting Indebtedness of such other Person
         or any guarantee of Indebtedness of any other Person; provided,
         however, that the term "Investment" shall not include any transaction
         involving the purchase or other acquisition (including by way of
         merger) of Property (including Capital Stock) by the Company or any
         Subsidiary in exchange for Capital Stock (other than Redeemable Stock)
         of the Company. The amount of any Person's Investment shall be the
         original cost of such Investment to such Person, plus the cost of all
         additions thereto paid by such Person, and minus the amount of any
         portion of such Investment repaid to such Person in cash as a repayment
         of principal or a return of capital, as the case may be, but without
         any other adjustments for increases or decreases in value, or writeups,
         writedowns or writeoffs with respect to such Investment. In determining
         the amount of any investment involving a transfer of any Property other
         than cash, such Property shall be valued at its Fair Value at the time
         of such transfer as determined in good faith by the board of directors
         (or comparable body) of the Person making such transfer.

                  "Investment Grade Status" exists as of any time if at such
         time (i) the rating assigned to the Notes by Moody's is Baa3 (or the
         equivalent) or higher and (ii) the rating assigned to the Notes by S&P
         is BBB- (or the equivalent) or higher.

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                  "Issue Date" means the date on which the Notes are first
         authenticated and delivered under this Indenture.

                  "Legal Holiday" means a day that is not a Business Day in the
         Place of Payment for the Note.

                  "Lien" means any mortgage, pledge, hypothecation, charge,
         assignment, deposit arrangement, encumbrance, security interest, lien
         (statutory or other), or preference, priority or other security or
         similar agreement or preferential arrangement of any kind or nature
         whatsoever (including, without limitation, any agreement to give or
         grant a Lien or any lease, conditional sale or other title retention
         agreement having substantially the same economic effect as any of the
         foregoing).

                  "Limited Recourse Indebtedness" means (i) Indebtedness with
         respect to the two drilling/workover barge rigs owned by the Company's
         Venezuelan Subsidiary as in effect on the Issue Date (the "Venezuelan
         Barge Financing"), (ii) Indebtedness with respect to two drillships
         owned by Andre Maritime Ltd. and Martin Maritime Ltd. as in effect on
         the Issue Date (the "Angola/Africa Drillship Financing") and (iii)
         Indebtedness incurred to finance the purchase, acquisition, renovation
         or construction of capital assets and related items (including interest
         added to principal), or refinancings thereof, (a) for which the
         recourse of the holder of such Indebtedness is effectively limited to
         such capital assets and related items or (b) in which the recourse and
         security are similar to (or more favorable to the Company and its
         Subsidiaries than) the Venezuelan Barge Financing or the Angola/Africa
         Drillship Financing.

                  "Liquidated Damages" means Liquidated Damages (as defined in
         the Registration Rights Agreement) owing with respect to the Notes
         under the Registration Rights Agreement.

                  "Market Capitalization" means an amount determined by
         multiplying the number of shares of Common Stock outstanding on the
         applicable date by the Average Sale Price as of such date.

                  "Market Price" means, as of any Repurchase Date, the average
         of the Sale Prices of a share of Common Stock over the five Trading Day
         period ending on the third Business Day prior to the applicable
         Repurchase Date (if the third Business Day prior to the applicable
         Repurchase Date is a Trading Day or, if it is not a Trading Day, then
         the five Trading Day period ending on the last Trading Day prior to
         such third Business Day), appropriately adjusted to take into account
         the occurrence, during the period commencing on the first Trading Day
         of such five Trading Day period and ending on such Repurchase Date, of
         any event described in Article Fourteen hereof that would result in an
         adjustment of the Conversion Rate.

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                  "Maturity" means the date on which the principal of a Note
         becomes due and payable as provided therein or in this Indenture,
         whether at the Stated Maturity or by declaration of acceleration or
         otherwise.

                  "Moody's" means Moody's Investors Service, Inc., and includes
         any successor to its credit ratings business.

                  "98% Trading Exception" has the meaning specified in Section
         1501.

                  "Non-Recourse Indebtedness" means Indebtedness or that portion
         of Indebtedness of a Non-Recourse Subsidiary as to which (a) neither
         the Company nor any Subsidiary provides credit support constituting
         Indebtedness of the Company or any Subsidiary or is otherwise directly
         or indirectly liable (other than such Indebtedness permitted to be
         incurred under the definition of Non-Recourse Subsidiary) and (b) no
         default with respect to such Indebtedness (including any rights which
         the holders thereof may have to take enforcement action against a
         Non-Recourse Subsidiary) would permit (upon notice or lapse of time or
         both) any holder of any other Indebtedness of the Company or its
         Subsidiaries to declare a default on such other Indebtedness or cause
         the payment thereof to be accelerated or payable prior to its stated
         maturity.

                  "Non-Recourse Subsidiary" means (i) any subsidiary of the
         Company that at the time of determination will be designated a
         Non-Recourse Subsidiary by the Board of Directors as provided below and
         (ii) any subsidiary of a Non-Recourse Subsidiary. The Board of
         Directors may designate any subsidiary of the Company as a Non-Recourse
         Subsidiary so long as (a) neither the Company nor any Subsidiary is
         directly or indirectly liable pursuant to the terms of any Indebtedness
         of such subsidiary or has made an Investment in such subsidiary,
         subject to the proviso described below; (b) no default with respect to
         any Indebtedness of such Subsidiary would permit (upon notice or lapse
         of time or otherwise) any holder of any other Indebtedness of the
         Company or any Subsidiary to declare a default on such other
         Indebtedness or cause the payment thereof to be accelerated or payable
         prior to its stated maturity; and (c) such designation does not result
         in the creation or imposition of any Lien on any Property of the
         Company or any Subsidiary (other than any Permitted Lien or any Lien
         the creation or imposition of which shall have been in compliance with
         Section 1009 hereof); provided, however, that with respect to clause
         (a), the Company or a Subsidiary may be liable for Indebtedness of, or
         may have an Investment in, a Non-Recourse Subsidiary if (x) at the time
         of incurrence, such liability or Investment,

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         together with all other liabilities and Investments within clause (a)
         outstanding at such time, does not exceed 5% of the Company's
         Consolidated Net Tangible Assets, or (y) at the time of designation of
         such subsidiary as a Non-Recourse Subsidiary, such liability or
         Investment, together with all other liabilities and Investments within
         clause (a) outstanding at such time, does not exceed 5% of the
         Company's Consolidated Net Tangible Assets (calculated as if such
         subsidiary were a Non-Recourse Subsidiary). Any such designation by the
         Board of Directors shall be evidenced to the Trustee by filing a Board
         Resolution with the Trustee giving effect to such designation. The
         Board of Directors may designate any Non-Recourse Subsidiary as a
         Subsidiary if, immediately after giving effect to such designation, (i)
         no Default or Event of Default shall have occurred and be continuing,
         and (ii) if any Property of the Company or any of its Subsidiaries
         would upon such designation become subject to any Lien (other than a
         Permitted Lien), the creation or imposition of such Lien shall have
         been in compliance with Section 1009 hereof.

                  "Notes" has the meaning specified in the recitals to the Sixth
         Supplemental Indenture to this Indenture.

                  "Original Indenture" means the Indenture, dated as of May 1,
         1997, between the Company and the Trustee, as originally executed.

                  "Parent Holding Company" means (a) from and after the time the
         Common Stock is not listed on a United States or foreign national or
         regional securities exchange or traded through the National Association
         of Securities Dealers Automated Quotation System or similar system or
         another Person succeeds to and is substituted for the Company under
         this Indenture, a Person which, immediately after such time, had
         substantially the same stockholders, directly or indirectly, as the
         Company immediately prior to such time with holdings in substantially
         the same proportion as such stockholders' holdings in the Company
         immediately prior to such time, (b) from and after the sale,
         conveyance, assignment, transfer, lease or other disposition of all or
         substantially all of the Company's and the Subsidiaries' assets, the
         Company (as determined prior to the transaction) and (c) each Wholly
         Owned Subsidiary of another Parent Holding Company.

                  "Permitted Liens" means (a) Liens in existence on the Issue
         Date; (b) Liens created for the benefit of the Notes; (c) Liens on
         Property of a Person existing at the time such Person is merged or
         consolidated with or into, or otherwise acquired by, the Company or a
         Subsidiary (and not incurred as a result of, or in anticipation of,
         such transaction), provided that such Liens relate solely to such
         Property and the proceeds thereof and accessories and upgrades thereto;
         (d) Liens on Property existing at the time of the acquisition thereof
         (and not incurred as a result of, or in anticipation of, such
         transaction), provided that such Liens relate solely to such Property
         and the proceeds thereof and accessories and upgrades thereto; (e)
         Liens incurred or pledges and deposits made in connection with worker's
         compensation, unemployment insurance and other social security
         benefits, statutory obligations, bid, surety or appeal bonds,
         performance bonds or

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         other obligations of a like nature incurred in the ordinary course of
         business; (f) Liens imposed by law or arising by operation of law,
         including, without limitation, landlords', mechanics', carriers',
         warehousemen's, materialmen's, suppliers' and vendors' Liens and Liens
         for master's and crew's wages and other similar maritime Liens, and
         incurred in the ordinary course of business; (g) zoning restrictions,
         easements, licenses, covenants, reservations, restrictions on the use
         of property and defects, irregularities and deficiencies in title to
         property that do not, individually or in the aggregate, materially
         affect the ability of the Company and its Subsidiaries, taken as a
         whole, to conduct the business presently conducted; (h) Liens for taxes
         or assessments or other governmental charges or levies not yet due and
         payable, or the validity of which is being contested by the Company or
         a Subsidiary in good faith appropriate proceedings upon stay of
         execution or the enforcement thereof and for which adequate reserves in
         accordance with GAAP or other appropriate provision has been made; (i)
         Liens to secure Indebtedness incurred for the purpose of financing all
         or a part of the purchase price or construction cost of Property
         (including the cost of upgrading or refurbishing rigs or drillships)
         acquired or constructed after the Issue Date, provided that (1) the
         principal amount of Indebtedness secured by such Liens shall not exceed
         100% of the lesser of cost or Fair Market Value of the Property so
         acquired, upgraded or constructed plus transaction costs related
         thereto, (2) such Liens shall not encumber any other Property of the
         Company or any Subsidiary (other than the proceeds thereof and
         improvements, accessions and upgrades thereto) and (3) such Liens shall
         attach to such Property within 180 days of the date of the later of
         commencement of commercial operations of such Property and completion
         of the construction, acquisition, upgrade or improvement of such
         Property; (j) Liens securing Capital Lease Obligations and other
         obligations, provided that such Liens secure Capital Lease Obligations
         and other obligations which, when combined with (1) the outstanding
         secured Indebtedness of the Company and its Subsidiaries (other than
         Indebtedness secured by Liens described under clauses (b) and (i)
         hereof) and (2) the aggregate amount of all other Capital Lease
         Obligations and other obligations of the Company and its Subsidiaries,
         do not exceed 10% of the Company's Consolidated Net Tangible Assets;
         (k) Liens to secure any extension, renewal, refinancing or refunding
         (or successive extensions, renewals, refinancings or refundings), in
         whole or in part, of any Indebtedness secured by Liens referred to in
         the foregoing clauses (a), (b), (c), (d) and (i), provided that such
         Liens do not extend to any other Property of the Company or any
         Subsidiary (other than the proceeds thereof and accessions and upgrades
         thereto) and the principal amount of the Indebtedness secured by such
         Liens is not increased; (1) any charter or lease of drilling rigs in
         the ordinary of course of business; (m) leases or subleases of property
         to other Persons in the ordinary course of business; (n) Liens securing
         Non-Recourse Indebtedness; (o) Liens securing Indebtedness (and any
         guarantee or pledge) under one or more credit

                                       11

<PAGE>

         facilities, in an aggregate principal amount at any one time
         outstanding not to exceed the greater of (A) $100 million and (B) an
         amount equal to 10% of the Company's Consolidated Net Tangible Assets
         determined as of the date of the incurrence of such Indebtedness (plus
         interest and fees under such facilities); (p) judgment liens not giving
         rise to an Event of Default so long as any appropriate legal
         proceedings which may have been only initiated for the review of such
         judgment shall not have been finally terminated or the period within
         which such proceedings may be initiated shall not have expired; (q)
         rights of set-off of banks and other Persons; (r) other deposits made
         in the ordinary course of business to secure liability to insurance
         carriers under insurance or self-insurance arrangements; (s) Liens
         securing reimbursement obligations under letters of credit, entered
         into in the ordinary course of business if in each case such Liens
         cover only the title documents and related goods (and any proceeds
         thereof) covered by the related letter of credit; (t) Liens or
         equitable encumbrances deemed to exist by reason of fraudulent
         conveyance or transfer laws or negative pledge or similar agreements to
         refrain from permitting Liens; and (u) Liens securing up to $500
         million of other Indebtedness.

                  "Permitted Subsidiary Indebtedness" means any of the following
         Indebtedness of a Subsidiary, other than guarantees of the Company's
         Indebtedness (provided that a pledge of assets to secure Indebtedness
         for which the pledgor is not otherwise liable shall not be considered a
         guarantee): (i) Indebtedness or preferred stock issued to and held by
         the Company or a Wholly Owned Subsidiary, so long as any transfer of
         such Indebtedness or preferred stock to a Person other then the Company
         or a Wholly Owned Subsidiary of the Company shall be deemed to
         constitute the issuance of such Indebtedness or preferred stock by the
         issuer; (ii) Indebtedness or preferred stock of a Subsidiary that
         existed at the time such Person became a Subsidiary (other than
         Indebtedness or preferred stock issued in connection with or in
         anticipation of that Person becoming a Subsidiary); (iii) Indebtedness
         or preferred stock outstanding on the Issue Date; (iv) Indebtedness
         (and any guarantee or pledge) under one or more credit facilities, in
         an aggregate principal amount at any one time outstanding not to exceed
         $250 million plus the greater of (x) $100 million and (y) an amount
         equal to 10% of the Company's Consolidated Net Tangible Assets
         determined as of the date of the incurrence of such Indebtedness (plus
         interest and fees under such facilities); (v) Indebtedness under
         Interest Swap Obligations if (a) such Interest Swap Obligations are
         related to payment obligations on Indebtedness, and (b) the notional
         principal amount of such Interest Swap Obligations does not exceed the
         principal amount of the Indebtedness to which such Interest Swap
         Obligations relate; (vi) Indebtedness under Currency Hedge Obligations
         if (x) such Currency Hedge Obligations are related to payment
         obligations on Indebtedness or to the foreign currency cash flows
         reasonably expected to be generated by the Company and the
         Subsidiaries, and (y) the notional

                                       12

<PAGE>

         principal amount of such Currency Hedge Obligations does not exceed the
         principal amount of the Indebtedness and the amount of the foreign
         currency cash flows to which such Currency Hedge Obligations relate;
         (vii) Indebtedness for bid performance bonds, surety bonds, appeal
         bonds and letters of credit or similar arrangements issued for the
         account of the Company or any Subsidiary, in each case in the ordinary
         course of business; (viii) Permitted Subsidiary Refinancing
         Indebtedness; (ix) preferred stock issued in exchange for, or the
         proceeds of which are used to refinance, repurchase or redeem,
         Indebtedness or preferred stock described in clauses (ii) and (iii)
         above (the "Retired Indebtedness or Stock"), if the preferred stock so
         issued has (a) a liquidation value not in excess of the principal
         amount or liquidation value of the Retired Indebtedness or Stock plus
         related expenses for redemption and issuance, and (b) a redemption date
         later than the stated maturity or redemption date (if any) of the
         Retired Indebtedness or Stock; (x) Indebtedness of a Subsidiary that
         represents the assumption by that Subsidiary of Indebtedness of another
         Subsidiary (other than Non-Recourse Indebtedness) in connection with a
         merger of those Subsidiaries, if no Subsidiary existing on the Issue
         Date or any successor assumes or otherwise becomes responsible for any
         Indebtedness of an entity that is not a Subsidiary on the Issue Date
         except to the extent that a Subsidiary would be permitted to incur such
         Indebtedness under this definition; (xi) Indebtedness to finance the
         construction and operation of the drillships Pride Africa and Pride
         Angola pursuant to the credit agreements among the Company, certain of
         its Subsidiaries, and lenders thereunder, as in effect on the Issue
         Date, and any refinancings or replacements thereof; and (xii)
         Indebtedness or preferred stock of any Subsidiary, which when taken
         together with all other Indebtedness and preferred stock of the
         Subsidiaries (except Indebtedness or preferred stock incurred pursuant
         to clauses (i), (ii), (iv), (v), (vi), (vii) and (xi) of this
         definition and clauses (viii) and (ix) of this definition to the extent
         relating to Indebtedness incurred pursuant to clauses (i), (ii), (iv),
         (v), (vi) and (vii) of this definition), does not exceed at any one
         time outstanding the greater of (x) $100 million and (y) 15% of the
         Company's Consolidated Net Tangible Assets determined as of the date of
         incurrence of such Indebtedness.

                  "Permitted Subsidiary Refinancing Indebtedness" means
         Indebtedness of any Subsidiary incurred in exchange for, or the net
         proceeds of which are used to renew, extend, refinance, refund or
         repurchase, outstanding Indebtedness of such Subsidiary or any other
         Subsidiary (provided that, if any Subsidiary that is an obligor on the
         Indebtedness being exchanged, renewed, extended, refinanced, refunded
         or repurchased (the "Existing Indebtedness") is a Subsidiary Guarantor,
         each Subsidiary that is an obligor on such Permitted Refinancing
         Subsidiary Indebtedness, if not an obligor on the Existing
         Indebtedness, must become a Subsidiary Guarantor), which outstanding
         Indebtedness was incurred in accordance with or is otherwise permitted
         by the terms of this Indenture, provided that (a) if the

                                       13

<PAGE>

         Indebtedness being renewed, extended, refinanced, refunded or
         repurchased is equal or subordinated in right of payment to the
         Subsidiary Guarantees, then such new Indebtedness is equal or
         subordinated, as the case may be, in right of payment (without regard
         to its being secured) to the Subsidiary Guarantees at least to the same
         extent as the Indebtedness being renewed, extended, refinanced,
         refunded or repurchased; (b) such new Indebtedness is scheduled to
         mature later than the Indebtedness being renewed, extended, refinanced,
         refunded or repurchased; (c) such new Indebtedness has an Average Life
         at the time such Indebtedness is incurred that is greater than the
         Average Life of the Indebtedness being renewed, extended, refinanced,
         refunded or repurchased; and (d) such new Indebtedness is in an
         aggregate principal amount (or, if such Indebtedness is issued at a
         price less than the principal amount thereof, the aggregate amount of
         gross proceeds therefrom is) not in excess of the aggregate principal
         amount then outstanding of the Indebtedness being renewed, extended,
         refinanced, refunded or repurchased (or if the Indebtedness being
         renewed, extended, refinanced, refunded or repurchased was issued at a
         price less than the principal amount thereof, then not in excess of the
         amount of liability in respect thereof determined in accordance with
         GAAP) plus the amount of reasonable fees, expenses and any premium
         incurred by the Company or such Subsidiary in connection therewith.

                  "Principal Amount" means, with respect to any Note, the
         principal amount due at the Stated Maturity thereof as set forth on the
         face of the Note.

                  "Principal Value Conversion" has the meaning specified in
         Section 1501.

                  "Property" means, with respect to any Person, any interest of
         such Person in any kind of property or asset, whether real, personal or
         mixed, or tangible or intangible.

                  "Purchase Agreement" means the Purchase Agreement dated April
         22, 2003 between the Company and the Initial Purchaser.

                  "Purchase Price" has the meaning specified in Section 1117(a).

                  "Redeemable Stock" means, with respect to any Person, any
         equity security that by its terms or otherwise is required to be
         redeemed, or is redeemable at the option of the holder thereof, at any
         time prior to one year following the Stated Maturity of the Notes or is
         exchangeable into Indebtedness of such Person or any of its
         subsidiaries.

                                       14

<PAGE>

                  "Registration Rights Agreement" means the Registration Rights
         Agreement dated April 28, 2003 between the Company and the Initial
         Purchaser and certain permitted assigns.

                  "Repurchase Date" has the meaning specified in Section
         1117(a).

                  "Repurchase Notice" has the meaning specified in Section
         1117(a)(1).

                  "Rule 144A" means Rule 144A promulgated under the Securities
         Act.

                  "S&P" means Standard & Poor's Ratings Services, and includes
         any successor to its credit ratings business.

                  "Sale and Lease-Back Transaction" means, with respect to any
         Person, any direct or indirect arrangement pursuant to which Property
         is sold or transferred by such Person or a subsidiary of such Person
         and is thereafter leased back from the purchaser or transferee thereof
         by such Person or one of its subsidiaries.

                  "Sale Price of a share of Common Stock" or "Sale Price" means,
         on any date, the closing per share sale price (or if no closing sale
         price is reported, the average of the bid and ask prices or, if more
         than one in either case, the average of the average bid and average ask
         prices) for the Common Stock on such date (or, if such date is not a
         Trading Day, on the last Trading Day prior to such date) as reported in
         the composite transactions for the principal United States securities
         exchange on which the Common Stock is traded or, if the Common Stock is
         not listed on a United States national or regional securities exchange,
         as reported by the Nasdaq System or by the National Quotation Bureau
         Incorporated.

                  "Securities Act" means the Securities Act of 1933, as amended,
         and the rules and regulations promulgated thereunder.

                  "Significant Subsidiary" means any Subsidiary that would be a
         "significant subsidiary" as defined in Article 1, Rule 1-02 of
         Regulation S-X, promulgated pursuant to the Securities Act, as such
         Regulation is in effect on the Issue Date.

                  "Sixth Supplemental Indenture" means the Sixth Supplemental
         Indenture, dated as of the Issue Date, between the Company and the
         Trustee, supplementing and amending the Original Indenture as set forth
         therein.

                  "Subordinated Indebtedness" means any Indebtedness of the
         Company or any Subsidiary Guarantor that is subordinated in right of
         payment to the Notes or the Subsidiary Guarantees, as the case may be,

                                       15

<PAGE>

         pursuant to a written agreement to that effect and does not mature
         prior to one year following the Stated Maturity of the Notes.

                  The term "subsidiary" means, with respect to any Person, (i)
         any corporation more than 50% of the outstanding Voting Stock of which
         is owned, directly or indirectly, by such Person, or by one or more
         other subsidiaries of such Person, or by such Person and one or more
         other subsidiaries of such Person, (ii) any general partnership, joint
         venture or similar entity more than 50% of the outstanding partnership
         or similar interests of which is owned, directly or indirectly, by such
         Person, or by one or more other subsidiaries of such Person, or by such
         Person and one or more other subsidiaries of such Person and (iii) any
         limited partnership of which such Person or any subsidiary of such
         Person is a general partner.

                  "Subsidiary" means a subsidiary of the Company other than a
         Non-Recourse Subsidiary.

                  "Subsidiary Guarantee" means any guarantee of the Notes by any
         Subsidiary Guarantor in accordance with the provisions described under
         Article Fourteen hereof.

                  "Subsidiary Guarantor" means (i) each of the Company's
         Subsidiaries, if any, executing this Indenture and (ii) any Person that
         becomes a successor guarantor of the Notes in compliance with the
         provisions described under Article Fourteen hereof.

                  "Tax Original Issue Discount" means the amount of ordinary
         interest income on a Note that must be accrued as original issue
         discount for United States Federal income tax purposes pursuant to U.S.
         Treasury Regulation Section 1.1275-4.

                  "Time of Determination" has the meaning specified in Section
         1501.

                  "Trading Day" means each day on which the securities exchange
         or quotation system which is used to determine the Sale Price or the
         independent nationally recognized securities dealers used to determine
         the Trading Price, as applicable, is open for trading or quotation;
         provided, however, that, in a context where both the Sale Price and
         Trading Price are required, "Trading Day" means each day on which both
         the securities exchange or quotation system which is used to determine
         the Sale Price and the independent nationally recognized securities
         dealers used to determine the Trading Price are open for trading or
         quotation.

                  "Trading Price per $1,000 Principal Amount of Notes" or
         "Trading Price" means, on any Trading Day, the average of the secondary
         market bid quotations (expressed as Dollars per $1,000 Principal Amount
         of Notes)

                                       16

<PAGE>

         obtained by the Trustee for $10,000,000 principal amount of Notes at
         approximately 3:30 p.m., New York City time, on such Trading Day from
         three independent nationally recognized securities dealers selected by
         the Company; provided that if at least three such bids cannot
         reasonably be obtained by the Trustee, but two bids are obtained, then
         the average of the two bids shall be used, and if only one such bid can
         reasonably be obtained by the Trustee, one bid shall be used; and
         provided further that if the Trustee cannot reasonably obtain at least
         one such bid or, in the Company's reasonable judgment, the bid
         quotations are not indicative of the secondary market value of the
         Notes, then (a) for purposes of evaluating the 98% Trading Exception,
         the Trading Price per $1,000 Principal Amount of Notes for such Trading
         Day shall be deemed to be less than 98% of the product of (i) the
         Conversion Rate in effect as of such Trading Day and (ii) the Sale
         Price of a share of Common Stock on such Trading Day and (b) for
         purposes of determining whether contingent interest is payable in
         respect of any six-month interest period, the Trading Price per $1,000
         Principal Amount of Notes for such Trading Day shall be deemed to be
         equal to the Trading Price per $1,000 Principal Amount of Notes on the
         Trading Day nearest thereto for which the Trading Price was determined
         for purposes of this Indenture and to which this proviso did not apply
         (provided that, if there are two such Trading Days equally near to the
         applicable Trading Day, the earlier of the two shall be used).

                  "Transfer Restricted Notes" has the meaning specified in
         Section 305(d).

                  "Voting Stock" means, with respect to any Person, securities
         of any class or classes of Capital Stock or other interests (including
         partnership interests) in such Person entitling the holders thereof
         (whether at all times or at the times that such class of Capital Stock
         has voting power by reason of the happening of any contingency) to vote
         in the election of members of the board of directors or comparable body
         of such Person.

                  "Wholly Owned Subsidiary" means, with respect to any Person,
         any subsidiary of such Person to the extent (i) all of the Voting Stock
         or other ownership interests in such subsidiary, other than any
         director's qualifying shares mandated by applicable law, is owned
         directly or indirectly by such Person or (ii) such subsidiary is
         organized in a foreign jurisdiction and is required by the applicable
         laws and regulations of such foreign jurisdiction to be partially owned
         by the government of such foreign jurisdiction or individual or
         corporate citizens of such foreign jurisdiction in order for such
         subsidiary to transact business in such foreign jurisdiction, provided,
         in the case of clause (ii), that such Person, directly or indirectly,
         owns the remaining Capital Stock or ownership interest in such
         subsidiary and, by contract or otherwise, controls the management and
         business of such subsidiary and derives the economic benefits of
         ownership of such

                                       17

<PAGE>

         subsidiary to substantially the same extent as if such subsidiary were
         a wholly owned subsidiary.

         Section 1.02. Supplement to Article Two of the Original Indenture. The
Original Indenture is supplemented with respect to the Notes by revising the
second sentence within the second full paragraph of Section 204(c) to read as
follows:

                  Upon receipt of such notice, or if either (1) the Depositary
         notifies the Company that it is unwilling or unable to continue as
         Depositary for any Book-Entry Securities representing the Notes and a
         successor Depositary is not appointed by the Company within 90 days of
         such notice or (2) an Event of Default has occurred with respect to the
         Notes and is continuing and the Security Registrar has received a
         request from the Depositary or the Trustee to issue Registered
         Securities not in global form, then in any such case the Depositary
         shall promptly surrender or cause the surrender of its Book-Entry
         Security or Securities to the Trustee. Concurrently therewith (or
         within 30 days of any request referred to in the preceding clause (2)
         of this paragraph), Registered Securities not issued in global form
         will be issued in an aggregate principal amount equal to the principal
         amount of the Book-Entry Security or Securities theretofore held by or
         on behalf of the Depositary.

         Section 1.03. Supplement to Article Three of the Original Indenture.
Section 305 of the Original Indenture is supplemented with respect to the Notes
by adding (i) the reference "(a)" prior to the current text of Section 305 and
(ii) the following provisions thereafter (provided that, in the event of
inconsistency between the following provisions and the provisions of Section 305
of the Original Indenture (now Section 305(a)), the following provisions shall
control):

                  (b)      So long as the Notes are eligible for book-entry
         settlement with the Depositary, or unless otherwise required by law,
         all Notes will be represented by one or more Notes in global form
         registered in the name of the Depositary or the nominee of the
         Depositary (collectively, the "Global Note"). Transfers, exchanges and
         redemptions of beneficial interests in the Global Note shall be
         effected through the Depositary in accordance with this Indenture and
         the procedures of the Depositary therefor. The Trustee shall make
         appropriate endorsements to reflect increases or decreases in the
         principal amounts of the Global Note as set forth on the face of the
         Note to reflect any such transfers, exchanges and redemptions. Except
         as provided below, beneficial owners of the Global Note shall not be
         entitled to have certificates registered in their names, will not
         receive or be entitled to receive physical delivery of certificates in
         definitive form and will not be considered Holders of the Global Note
         for any purposes under this Indenture.

                                       18

<PAGE>

                  (c)      Any Global Note may be endorsed with or have
         incorporated in the text thereof such legends or recitals or changes
         not inconsistent with the provisions of this Indenture as may be
         required by the Depositary or by the National Association of Securities
         Dealers, Inc. in order for the Notes to be tradable on The PORTAL
         Market or as may be required for the Notes to be tradable on any other
         market developed for trading of securities pursuant to Rule 144A or
         required to comply with any applicable law or any regulation thereunder
         or with the rules and regulations of any securities exchange or
         automated quotation system upon which the Notes may be listed or traded
         or to conform with any usage with respect thereto, or to indicate any
         special limitations or restrictions to which any particular Notes are
         subject.

                  (d)      Every Note that bears or is required under this
         Section 305(d) to bear the legend set forth in this Section
         305(d) (together with any Common Stock issued upon conversion of the
         Notes and required to bear the legend set forth in Section 305(e),
         collectively, the "Transfer Restricted Notes") shall be subject to
         the restrictions on transfer set forth in this Section 305(d)
         (including those set forth in the legend set forth below), and the
         Holder of each such Transfer Restricted Note, by such Holder's
         acceptance thereof, agrees to be bound by all such restrictions on
         transfer. As used in Sections 305(d) and 305(e), the term "transfer"
         encompasses any sale, pledge, transfer or other disposition
         whatsoever of any Transfer Restricted Note. The Company shall not
         register any transfer of a Transfer Restricted Note not made in
         accordance with the restrictions on transfer set forth in this
         Section 305.

                  Until the expiration of the holding period applicable to sales
         thereof under Rule 144(k) under the Securities Act (or any successor
         provision), any certificate evidencing such Note (and all securities
         issued in exchange therefor or substitution thereof, other than Common
         Stock, if any, issued upon conversion thereof, which shall bear the
         legend set forth in Section 305(e), if applicable) shall bear a legend
         in substantially the following form, unless such Note has been sold
         pursuant to a registration statement that has been declared effective
         under the Securities Act (and which continues to be effective at the
         time of such transfer):

                  THIS SECURITY AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF
         THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED (THE "SECURITIES ACT"). THE HOLDER HEREOF, BY
         PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT OF PRIDE
         INTERNATIONAL, INC. (THE

                                       19

<PAGE>

         "COMPANY") THAT THIS SECURITY AND THE COMMON STOCK ISSUABLE UPON
         CONVERSION OF THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE
         TRANSFERRED (X) PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD UNDER
         RULE 144(k) (OR ANY SUCCESSOR THERETO) UNDER THE SECURITIES ACT WHICH
         IS APPLICABLE TO THIS SECURITY OR THE COMMON STOCK ISSUABLE UPON
         CONVERSION OF THIS SECURITY OR (Y) BY ANY HOLDER THAT WAS AN
         "AFFILIATE" (WITHIN THE MEANING OF RULE 144 UNDER THE SECURITIES ACT)
         OF THE COMPANY AT ANY TIME DURING THE THREE MONTHS PRECEDING THE DATE
         OF SUCH TRANSFER, IN EITHER CASE, OTHER THAN (1) TO THE COMPANY, (2) SO
         LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A
         UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON WHOM THE SELLER
         REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
         MEANING OF RULE 144A, PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
         OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
         RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE
         144A, (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
         SECURITIES ACT PROVIDED BY RULE 144 (IF APPLICABLE) UNDER THE
         SECURITIES ACT OR (4) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
         UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY
         APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. [INCLUDE
         FOLLOWING IF THE SECURITY IS IN CERTIFICATED FORM: PRIOR TO A TRANSFER
         OF THIS SECURITY (OTHER THAN A TRANSFER PURSUANT TO CLAUSE (4) ABOVE),
         THE HOLDER OF THIS SECURITY MUST, PRIOR TO SUCH TRANSFER, FURNISH TO
         THE COMPANY AND THE TRUSTEE SUCH CERTIFICATES AND OTHER INFORMATION
         AND, IN THE CASE OF A TRANSFER PURSUANT TO CLAUSE (3) ABOVE, A LEGAL
         OPINION AS THEY MAY REASONABLY REQUIRE TO CONFIRM THAT ANY TRANSFER BY
         IT OF THIS SECURITY COMPLIES WITH THE FOREGOING RESTRICTIONS.] THE
         HOLDER HEREOF, BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES FOR
         THE BENEFIT OF THE COMPANY THAT IT IS A QUALIFIED INSTITUTIONAL BUYER.

                  Any Note (or security issued in exchange or substitution
         therefor) as to which such restrictions on transfer shall have expired

                                       20

<PAGE>

         in accordance with their terms or that has been transferred pursuant to
         a registration statement that has been declared effective under the
         Securities Act may, upon surrender of such Note for exchange to the
         Security Registrar in accordance with the provisions of this Section
         305, be exchanged for a new Note or Notes, of like tenor and aggregate
         principal amount, which shall not bear the restrictive legend required
         by this Section 305(d).

                  Notwithstanding any other provisions of this Indenture (other
         than the provisions set forth in Section 305(c) and in this Section
         305(d)), the Global Note may not be transferred as a whole or in part
         except by the Depositary to a nominee of the Depositary or by a nominee
         of the Depositary to the Depositary or another nominee of the
         Depositary or by the Depositary or any such nominee to a successor
         Depositary or a nominee of such successor Depositary.

                  The Depositary shall be a clearing agency registered under the
         Exchange Act. The Company initially appoints The Depository Trust
         Company to act as Depositary with respect to the Global Note.
         Initially, the Global Note shall be issued to the Depositary,
         registered in the name of Cede & Co., as the nominee of the Depositary,
         and deposited with the Custodian for Cede & Co. Any transfer of any
         beneficial interest in the Global Note shall only be permitted if such
         transfer is in compliance with the provisions of Section 305(d)
         applicable to transfers of the Notes and the rules and procedures of
         the Depositary therefor, which shall include restrictions on transfer
         comparable to those set forth therein and herein to the extent required
         by the Securities Act.

                  If a Note in certificated form is issued in exchange for any
         portion of the Global Note after the close of business at the office or
         agency where such exchange occurs on any record date and before the
         opening of business at such office or agency on the next succeeding
         Interest Payment Date, interest will not be payable on such Interest
         Payment Date in respect of such Note, but will be payable on such
         Interest Payment Date, subject to the provisions of the Note, only to
         the person to whom interest in respect of such portion of the Global
         Note is payable in accordance with the provisions of this Indenture and
         the Notes.

                  Notes in certificated form issued in exchange for all or a
         part of the Global Note pursuant to Section 204 and this Section 305
         shall be registered in such names and in such authorized denominations
         as the Depositary, pursuant to instructions from its direct or indirect
         participants or otherwise, shall instruct the Trustee. Upon execution
         and authentication, the Trustee shall deliver such Notes in

                                       21

<PAGE>

         certificated form to the persons in whose names such Notes in
         certificated form are so registered.

                  At such time as all interests in the Global Note have been
         redeemed, converted, canceled, exchanged for Notes in certificated
         form, or transferred to a transferee who receives Notes in certificated
         form, such Global Note shall, upon receipt thereof, be canceled by the
         Trustee in accordance with standing procedures and instructions
         existing between the Depositary and the Custodian for Cede & Co. At any
         time prior to such cancellation, if any interest in the Global Note is
         redeemed, converted, repurchased or canceled, the Principal Amount of
         the Global Note shall, in accordance with the standing procedures and
         instructions existing between the Depositary and the Custodian for Cede
         & Co., be appropriately reduced and an endorsement shall be made on
         such Global Note, by the Trustee or the Custodian for Cede & Co., at
         the direction of the Trustee, to reflect such reduction.

                  (e)      Every stock certificate representing Common Stock
         issued upon conversion of a Transfer Restricted Note that bears or is
         required under this Section 305(e) to bear the legend set forth in
         this Section 305(e) shall be subject to the restrictions on transfer
         set forth in this Section 305(e) (including those set forth in the
         legend set forth below), and the holder of such Common Stock issued
         upon conversion of a Transfer Restricted Note, by such holder's
         acceptance thereof, agrees to be bound by all such restrictions on
         transfer. The Company shall not register any transfer of Common Stock
         issued upon conversion of such a Transfer Restricted Note not made in
         accordance with the restrictions on transfer set forth in this
         Section 305.

                  Until the expiration of the holding period applicable to sales
         thereof under Rule 144(k) under the Securities Act (or any successor
         provision), any stock certificate representing Common Stock issued upon
         conversion of a Transfer Restricted Note shall bear a legend in
         substantially the following form, unless such Common Stock has been
         sold pursuant to a registration statement that has been declared
         effective under the Securities Act (and which continues to be effective
         at the time of such transfer) or such Common Stock has been issued upon
         conversion of Notes that have been transferred pursuant to a
         registration statement that has been declared effective under the
         Securities Act:

                  THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
         OF 1933, AS AMENDED (THE "SECURITIES ACT"). THE HOLDER HEREOF, BY

                                       22

<PAGE>

         PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT OF PRIDE
         INTERNATIONAL, INC. (THE "COMPANY") THAT THIS SECURITY MAY NOT BE
         RESOLD, PLEDGED OR OTHERWISE TRANSFERRED (X) PRIOR TO THE EXPIRATION OF
         THE HOLDING PERIOD UNDER RULE 144(k) (OR ANY SUCCESSOR THERETO) UNDER
         THE SECURITIES ACT WHICH IS APPLICABLE TO THIS SECURITY OR (Y) BY ANY
         HOLDER THAT WAS AN "AFFILIATE" (WITHIN THE MEANING OF RULE 144 UNDER
         THE SECURITIES ACT) OF THE COMPANY AT ANY TIME DURING THE THREE MONTHS
         PRECEDING THE DATE OF SUCH TRANSFER, IN EITHER CASE, OTHER THAN (1) TO
         THE COMPANY, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
         SECURITIES ACT PROVIDED BY RULE 144 (IF APPLICABLE) UNDER THE
         SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON
         THE CERTIFICATE OF TRANSFER APPLICABLE TO THIS SECURITY, THE FORM OF
         WHICH MAY BE OBTAINED FROM THE COMPANY OR THE TRANSFER AGENT) OR (3)
         PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
         ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF
         ANY STATE OF THE UNITED STATES. PRIOR TO A TRANSFER OF THIS SECURITY
         (OTHER THAN A TRANSFER PURSUANT TO CLAUSE (3) ABOVE), THE HOLDER OF
         THIS SECURITY MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE COMPANY AND
         THE TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AND, IN THE
         CASE OF A TRANSFER PURSUANT TO CLAUSE (2) ABOVE, A LEGAL OPINION AS
         THEY MAY REASONABLY REQUIRE TO CONFIRM THAT ANY TRANSFER BY IT OF THIS
         SECURITY COMPLIES WITH THE FOREGOING RESTRICTIONS.

                  Any such Common Stock as to which such restrictions on
         transfer shall have expired in accordance with their terms or that has
         been transferred pursuant to a registration statement that has been
         declared effective under the Securities Act may, upon surrender of the
         certificates representing such shares of Common Stock for exchange in
         accordance with the procedures of the transfer agent for the Common
         Stock, be exchanged for a new certificate or certificates for a like
         number of shares of Common Stock, which shall not bear the restrictive
         legend required by this Section 305(e).

                                       23

<PAGE>

                  (f)      Any Note or Common Stock issued upon the conversion
         or exchange of a Note that, prior to the expiration of the holding
         period applicable to sales thereof under Rule 144(k) under the
         Securities Act (or any successor provision), is purchased or owned by
         the Company or any Affiliate thereof may not be resold by the Company
         or such Affiliate unless registered under the Securities Act or resold
         pursuant to an exemption from the registration requirements of the
         Securities Act in a transaction which results in such Notes or Common
         Stock, as the case may be, no longer being "restricted securities" (as
         defined under Rule 144).

                  (g)      Each Holder of a Note agrees to indemnify the Company
         and the Trustee against any liability that may result from the
         registration of transfer, exchange or assignment of such Holder's Note
         in violation of any provision of this Indenture and/or applicable
         United States Federal or state securities law.

         The Trustee shall have no obligation or duty to monitor, determine or
         inquire as to compliance with any restrictions on transfer imposed
         under this Indenture or under applicable law with respect to any
         transfer of any interest in any Note (including any transfers between
         or among Depositary Participants or beneficial owners of interests in
         the Global Note) other than to require delivery of such certificates
         and other documentation or evidence as are expressly required by, and
         to do so if and when expressly required by the terms of, this
         Indenture, and to examine the same to determine substantial compliance
         as to form with the express requirements hereof.

         Section 1.04. Supplement to Article Four of the Original Indenture. The
Original Indenture is supplemented with respect to the Notes by (a) adding the
words "Article Fifteen and" immediately before the words "Sections 305" in the
last paragraph of Section 401 and (b) inserting the following provision in
Article Four:

                  SECTION 405. Discharge of Subsidiary Guarantees.

                  The obligations of each Subsidiary Guarantor with respect to
         its Subsidiary Guarantee and under this Indenture shall be discharged
         automatically to the same extent as the obligations of the Company with
         respect to the Notes are discharged pursuant to this Article Four (in
         addition to any release or discharge pursuant to Section 1404), and
         such obligations of each Subsidiary Guarantor so discharged shall be
         subject to reinstatement pursuant to Section 404 in the event that such
         obligations of the Company shall be reinstated (unless released or
         discharged pursuant to Section 1404).

                                       24
<PAGE>

         Section 1.05. Supplement to Article Five of the Original Indenture.

                  (a)      Section 501 of the Original Indenture is supplemented
         with respect to the Notes by deleting provisions (3) and (4) thereto
         (without renumbering) and adding the following provisions (8)-(14)
         thereto:

                  (8)      the Company (i) defaults in the payment (other than
         payment in shares of Common Stock or cash in lieu of fractional
         interests in shares of Common Stock, which is covered by clause (ii) of
         this Section 501(8)) of the Principal Amount, Redemption Price,
         Purchase Price or Change in Control Purchase Price with respect to any
         Note when the same becomes due and payable at its Stated Maturity, upon
         redemption, upon declaration, when due for purchase by the Company or
         otherwise, or (ii) defaults in the delivery of shares of Common Stock
         (or cash in lieu of fractional interests in shares of Common Stock) in
         accordance with the terms hereof when such Common Stock or cash is
         required to be delivered upon conversion or purchase of a Note and such
         default in this clause (ii) is not remedied for a period of 10 days;

                  (9)      the Company fails to comply with any of its covenants
         or agreements contained in Section 801 or Section 1110 hereof;

                  (10)     default in the performance or breach of any covenant
         or agreement of the Company or any Subsidiary Guarantor contained in
         the Notes, any Subsidiary Guarantee or this Indenture (other than a
         covenant or agreement a default in performance or breach of which is
         specifically dealt with) and continuance of such default or breach for
         a period of 30 days after written notice thereof has been mailed, by
         registered or certified mail, to the Company or such Subsidiary
         Guarantor by the Trustee or to the Company or such Subsidiary Guarantor
         and the Trustee by the Holders of at least 25% of the aggregate
         principal amount of the outstanding Notes;

                  (11)     Indebtedness (other than Non-Recourse Indebtedness or
         Limited Recourse Indebtedness) of the Company or any Subsidiary is not
         paid when due within the applicable grace period or is accelerated by
         the holders thereof and, in either case, the aggregate principal amount
         of such due and unpaid or accelerated Indebtedness exceeds $10 million;

                  (12)     the entry by a court having jurisdiction in the
         premises of (A) a decree or order for relief in respect of any
         Subsidiary that constitutes a Significant Subsidiary or any group of

                                       25
<PAGE>

         Subsidiaries that, taken together, would constitute a Significant
         Subsidiary, in an involuntary case or proceeding under any applicable
         federal or state bankruptcy, insolvency, reorganization or other
         similar law or (B) a decree or order adjudging such Subsidiary or
         Subsidiaries a bankrupt or insolvent, or approving as properly filed a
         petition seeking reorganization, arrangement, adjustment or composition
         of or in respect of such Subsidiary or Subsidiaries under any
         applicable federal or state law, or appointing a custodian, receiver,
         liquidator, assignee, trustee, sequestrator or other similar official
         of such Subsidiary or Subsidiaries or of any substantial part of its
         property, or ordering the winding up or liquidation of its affairs, and
         the continuance of any such decree or order for relief or any such
         other decree or order unstayed and in effect for a period of 90
         consecutive days;

                  (13)     the commencement by any Subsidiary that constitutes a
         Significant Subsidiary or any group of Subsidiaries that, taken
         together, would constitute a Significant Subsidiary, of a voluntary
         case or proceeding under any applicable federal or state bankruptcy,
         insolvency, reorganization or other similar law or of any other case of
         proceeding to be adjudicated a bankrupt or insolvent, or the consent by
         it to the entry of a decree or order for relief in respect of such
         Subsidiary or Subsidiaries in an involuntary case or proceeding under
         any applicable federal or state bankruptcy, insolvency, reorganization
         or other similar law or to the commencement of any bankruptcy or
         insolvency case or proceeding against such Subsidiary or Subsidiaries,
         or the filing by such Subsidiary or Subsidiaries, of a petition or
         answer or consent seeking reorganization or relief under any applicable
         federal or state law, or the consent by such Subsidiary or Subsidiaries
         to the filing of such petition or to the appointment of or taking
         possession by a custodian, receiver, liquidator, assignee, trustee,
         sequestrator or similar official of such Subsidiary or Subsidiaries or
         of any substantial part of the property of such Subsidiary or
         Subsidiaries, or the making by such Subsidiary or Subsidiaries of an
         assignment for the benefit of creditors, or the admission by such
         Subsidiary or Subsidiaries in writing of the inability of such
         Subsidiary or Subsidiaries to pay the debts of such Subsidiary or
         Subsidiaries generally as they become due, or the taking of corporate
         action by such Subsidiary or Subsidiaries in furtherance of any such
         action; or

                  (14)     any Subsidiary Guarantee shall for any reason cease
         to be, or be asserted by the Company or any Subsidiary Guarantor, as
         applicable, not to be, in full force and effect (except pursuant to the
         release of any such Subsidiary Guarantee in accordance with this
         Indenture).

                                       26
<PAGE>

                  (b)      The first paragraph of Section 502 of the Original
         Indenture is superseded with respect to the Notes by the following
         provision:

         If an Event of Default with respect to any Notes at the time
         Outstanding occurs and is continuing, then in every such case the
         Trustee or the Holders of not less than 25% in principal amount of the
         Outstanding Notes may declare the Principal Amount on the Notes to be
         due and payable immediately, by a notice in writing to the Company (and
         to the Trustee if given by Holders), except that, in the case of an
         Event of Default specified in clause (10) of Section 501, if the Event
         of Default affects more than one series of Securities, the Trustee, or
         the Holders of not less than 25% in principal amount of the Outstanding
         Securities, of all series of Securities shall be required to make such
         declaration. Upon any such declaration, such amount shall become
         immediately due and payable. If an Event of Default described in clause
         (5), (6), (12) or (13) of Section 501 shall occur, the Principal Amount
         on the Notes to and including the date of occurrence of such event ipso
         facto shall become and be immediately due and payable without any
         declaration or other act on the part of the Trustee or any Holder.

         Section 1.06. Supplement to Article Eight of the Original Indenture.
Section 801 of the Original Indenture is superseded with respect to the Notes by
the following provisions:

                  The Company will not, in any transaction or series of
         transactions, consolidate with or merge into any other Person (other
         than a merger of a Subsidiary or any other Person into the Company in
         which the Company is the continuing corporation), or sell, convey,
         assign, transfer, lease or otherwise dispose of all or substantially
         all of the assets of the Company and its Subsidiaries, taken as a
         whole, to any Person, unless:

                  (i)      either (a) the Company shall be the continuing Person
         or (b) the Person (if other than the Company) formed by such
         consolidation or which acquires, by sale, assignment, conveyance,
         transfer, lease or other disposition, all or substantially all of the
         assets of the Company and its Subsidiaries, taken as a whole (such
         Person, the "Surviving Entity"), shall be a Person organized and
         validly existing under the laws of the United States of America, any
         state thereof or the District of Columbia, the Bahamas, Barbados,
         Bermuda, the British Virgin Islands, the Cayman Islands, any of the
         Channel Islands, France, the Netherlands or the Netherlands Antilles
         and shall expressly assume, by a supplement to this Indenture, the due
         and punctual payment of all amounts owing on all the Notes and

                                       27
<PAGE>

         the performance of the Company's covenants and obligations under this
         Indenture;

                  (ii)     immediately after giving effect to such transaction
         or series of transactions on a pro forma basis (including, without
         limitation, any Indebtedness incurred or anticipated to be incurred in
         connection with or in respect of such transaction or series of
         transactions), no Event of Default or Default shall have occurred and
         be continuing or would result therefrom;

                  (iii)    in the event that the Company or the Surviving Entity
         is organized in a jurisdiction other than the United States which is
         different from the jurisdiction in which the obligor on the Notes was
         organized immediately before giving effect to the transaction or series
         of transactions, (a) the Company or such Surviving Entity, as
         applicable, delivers to the Trustee an Opinion of Counsel stating that
         (1) the obligations of the Company or the Surviving Entity, as
         applicable, are enforceable under the laws of the new jurisdiction of
         its formation subject to customary exceptions and (2) the Holders of
         Notes will not recognize any income, gain or loss for U.S. federal
         income tax purposes as a result of the transaction or series of
         transactions and will be subject to U.S. federal income tax on the same
         amount and in the same manner and at the same times as would have been
         the case if such transaction or series of transactions had not
         occurred, (b) the Company or such Surviving Entity, as applicable,
         agrees in writing to submit to jurisdiction to the competent courts of
         the State of New York or the federal district court sitting in The City
         of New York and appoints an agent in the State of New York for the
         service of process, each under terms satisfactory to the Trustee and
         (c) the Board of Directors of the Company or the comparable governing
         body of such Surviving Entity, as applicable, determines in good faith
         that such transaction will have no material adverse effect on any
         Holder of Notes and a Board Resolution (or its equivalent if the
         Surviving Entity is not a corporation) to that effect is delivered to
         the Trustee; and

                  (iv)     the Company has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that such
         consolidation, merger, conveyance, assignment, transfer, lease or other
         disposition and, if a supplemental indenture is required in connection
         with such transaction, such supplemental indenture, comply with this
         Article and that all conditions precedent herein provided for relating
         to such transaction or series of transactions have been complied with.

                                       28
<PAGE>

         Section 1.07. Supplement to Article Nine of the Original Indenture.

                  (a)      Section 901 of the Original Indenture is supplemented
         with respect to the Notes by inserting the following provisions at the
         end of Section 901:

                  (9)      to provide for uncertificated Notes in addition to or
         in place of certificated Notes (provided that the uncertificated Notes
         are issued in registered form for purposes of Section 163(f) of the
         Internal Revenue Code of 1986);

                  (10)     to add any Subsidiary Guarantor or release any
         Subsidiary Guarantor as provided in Article Four or Section 1404;

                  (11)     to release any Subsidiary Guarantor pursuant to the
         terms of this Indenture other than as provided in Article Four or
         Section 1404, provided that such action will not adversely affect the
         interests of the Holders in any material respect; or

                  (12)     to provide for the assumption of the obligations of
         the Company in any case contemplated by Section 1514 hereof.

                  (b)      Article Nine of the Original Indenture is
         supplemented with respect to the Notes by inserting the following
         provisions at the end of Article Nine:

         SECTION 908. Supplemental Indentures with Consent of Holders of Notes.

                  Notwithstanding Section 902, without the consent of each
         Holder affected, an amendment or supplement to this Indenture or the
         Notes may not:

                  (1)      make any change to the principal amount of the Notes
         whose Holders must consent to an amendment or supplement to this
         Section 907;

                  (2)      reduce the Conversion Rate applicable to the Notes;

                  (3)      reduce the Redemption Price or Change in Control
         Purchase Price of any Note or extend the date on which the Change in
         Control Purchase Price of any Note is payable;

                  (4)      subordinate in right of payment, or otherwise
         subordinate, the Notes or any Subsidiary Guarantee to any other
         Indebtedness;

                                       29
<PAGE>

                  (5)      make any change that materially and adversely affects
         the right to convert any Note; or

                  (6)      make any change that materially and adversely affects
         the right to require the Company to purchase the Notes upon a Change in
         Control in accordance with the terms thereof and this Indenture.

         Section 1.08. Supplement to Article Ten of the Original Indenture.

                  (a)      Section 1001 of the Original Indenture is
         supplemented with respect to the Notes by inserting the following three
         paragraphs at the end thereof:

                  The Company will pay contingent interest in respect of any
         six-month interest period from May 1 to October 31 or November 1 to
         April 30 commencing on or after May 1, 2008 for which the Trading Price
         for each of the five Trading Days immediately preceding the first day
         of such six-month interest period equals 120% or more of $1,000 per
         $1,000 Principal Amount of Notes. For any six-month interest period in
         respect of which contingent interest is payable, the contingent
         interest payable on each $1,000 Principal Amount of Notes shall equal
         0.25% of the average Trading Price per $1,000 Principal Amount of Notes
         during the five Trading Day measuring period immediately preceding the
         first day of such six-month interest period.

                  Contingent interest due under this Article Ten shall be
         treated for all purposes of this Indenture like any other interest
         accruing on the Notes. By the first Business Day of a six-month
         interest period in respect of which contingent interest will be paid,
         the Company shall disseminate a press release through Dow Jones &
         Company, Inc. or Bloomberg Business News stating that contingent
         interest will be paid on the Notes and identifying the six-month
         interest period.

                  (b)      The first sentence of Section 1002 of the Original
         Indenture is superseded with respect to the Notes by the following
         sentence:

                  The Company will maintain in the Borough of Manhattan, The
         City of New York, an office or agency of the Trustee, Security
         Registrar, Paying Agent and Conversion Agent where Notes may be
         presented or surrendered for payment, where Notes may be surrendered
         for registration of transfer, exchange, purchase, redemption or
         conversion and where notices and demands to or upon

                                       30
<PAGE>

         the Company in respect of the Notes and this Indenture may be served.

                  (c)      Article Ten of the Original Indenture is supplemented
         with respect to the Notes by inserting the following Sections at the
         end thereof:

                  SECTION 1008. Limitation on Sale and Lease-Back Transactions.

                  The Company will not, and will not permit any Subsidiary to,
         directly or indirectly, enter into, assume, guarantee or otherwise
         become liable with respect to any Sale and Lease-Back Transaction
         unless (i) the proceeds from such Sale and Lease-Back Transaction are
         at least equal to the Fair Market Value of the Property being
         transferred and (ii) the Company or such Subsidiary would have been
         permitted to enter into such transaction under the tests described
         under Section 1009 hereof.

                  SECTION 1009. Limitation on Liens.

                  The Company will not, and will not permit any Subsidiary to,
         directly or indirectly, create, affirm, incur, assume or suffer to
         exist any Liens, other than Permitted Liens, on or with respect to any
         Property of the Company or such Subsidiary or any interest in such
         Property or any income or profits from such Property, whether owned at
         the Issue Date or thereafter acquired, without effectively providing
         that the Notes shall be secured equally and ratably with (or prior to)
         any Indebtedness so secured.

                  SECTION 1010. Limitation on Non-Guarantor Subsidiaries.

                  The Company will not permit any Subsidiary that is not a
         Subsidiary Guarantor to incur any Indebtedness, other than Indebtedness
         of Non-Recourse Subsidiaries and Permitted Subsidiary Indebtedness,
         unless: (i)(A) such Subsidiary simultaneously executes and delivers a
         supplement to this Indenture providing for a Subsidiary Guarantee of
         the Notes by such Subsidiary and (B) with respect to Indebtedness in
         the form of a guarantee of Subordinated Indebtedness of the Company by
         such Subsidiary, any such guarantee shall be subordinated to such
         Subsidiary's Subsidiary Guarantee at least to the same extent as such
         Subordinated Indebtedness is subordinated to the Notes; (ii) such
         Subsidiary waives, and agrees not in any manner whatsoever to exercise
         any right or claim or take the benefit or advantage of, any rights of
         reimbursement, indemnity or subrogation or any other

                                       31
<PAGE>

         rights against the Company or any other Subsidiary as a result of any
         payment by such Subsidiary under its Subsidiary Guarantee until such
         time as the obligations guaranteed thereby are paid in full; and (iii)
         such Subsidiary shall deliver to the Trustee an Opinion of Counsel of
         independent legal counsel to the effect that such supplement has been
         duly executed and authorized and such Subsidiary Guarantee constitutes
         a valid, binding and enforceable obligation of such Subsidiary, except
         insofar as enforcement thereof may be limited by bankruptcy, insolvency
         or similar laws (including, without limitation, all laws relating to
         fraudulent transfers) and except insofar as enforcement thereof is
         subject to general principles of equity.

                  SECTION 1011. Reports.

                  The Company and any Subsidiary Guarantors shall file with the
         Commission, to the extent such filings are accepted by the Commission
         and whether or not the Company has a class of securities registered
         under the Exchange Act, the annual reports, quarterly reports and other
         documents that the Company would be required to file if the Company
         were subject to Section 13 or 15 of the Exchange Act, in each case on
         or before the dates on which such reports and other documents would
         have been required to have been filed with the Commission if the
         Company had been subject to Section 13 or 15 of the Exchange Act,
         beginning with the Company's fiscal quarter ended March 31, 2003. The
         Company shall also (i) file with the Trustee (with exhibits), and
         provide to each Holder of Notes (without exhibits), without cost to
         such Holder, copies of such reports and documents within 15 days after
         the date on which the Company files such reports and documents with the
         Commission or the date on which the Company would be required to file
         such reports and documents if the Company were so required and (ii) if
         filing such reports and documents with the Commission is not accepted
         by the Commission or is prohibited under the Exchange Act, supply at
         the Company's cost copies of such reports and documents (including any
         exhibits thereto) to any Holder of Notes promptly upon written request.
         The Company shall at all times comply with Trust Indenture Act Section
         314(a).

                  SECTION 1012. Taxes.

                  The Company shall pay, and shall cause each of its
         Subsidiaries to pay, prior to delinquency, all material taxes,
         assessments, and governmental levies except such as are contested in
         good faith and by appropriate proceedings or where the failure to

                                       32
<PAGE>

         effect such payment is not adverse in any material respect to the
         Holders of the Notes.

                  SECTION 1013. Liquidated Damages.

                  (a)      Whenever in this Indenture there is mentioned, in any
         context, the payment of interest on, or in respect of, any Note, such
         mention shall be deemed to include mention of the payment of Liquidated
         Damages to the extent that, in such context, Liquidated Damages are,
         were or would be payable in respect thereof pursuant to the provisions
         of the Registration Rights Agreement and express mention of the payment
         of Liquidated Damages (if applicable) in any provisions hereof shall
         not be construed as excluding Liquidated Damages in those provisions
         hereof where such express mention is not made; provided, however, that,
         if a conflict or inconsistency with respect to Liquidated Damages
         exists between the Registration Rights Agreement and this Indenture,
         this Indenture shall control with respect to timing and mechanics of
         payment, and the Registration Rights Agreement shall control otherwise
         (including with respect to whether and the amount of Liquidated Damages
         payable). For the avoidance of doubt, this Section 1013 shall not give
         rise to an independent obligation of the Company to pay Liquidated
         Damages and is included in this Indenture only to establish the timing
         and mechanics of payment of Liquidated Damages but only to the extent
         payable pursuant to the Registration Rights Agreement.

                  (b)      If Liquidated Damages are payable pursuant to the
         Registration Rights Agreement, the Company shall deliver to the Trustee
         a certificate to that effect stating (i) the amount of such Liquidated
         Damages that are payable and (ii) the date on which such Liquidated
         Damages are payable. Unless and until a Responsible Officer receives at
         the Corporate Trust Office such a certificate, the Trustee may assume
         without inquiry that no such Liquidated Damages are payable.

                  SECTION 1014. Stay, Extension and Usury Laws.

                  Each of the Company and the Subsidiary Guarantors covenants
         (to the extent that it may lawfully do so) that it shall not at any
         time insist upon, plead, or in any manner whatsoever claim or take the
         benefit or advantage of, any stay, extension or usury law wherever
         enacted, now or at any time hereafter in force, that may affect the
         covenants or the performance of this Indenture, and each of the Company
         and the Subsidiary Guarantors (to the extent that it may lawfully do
         so) hereby expressly waives all benefit or advantage

                                       33
<PAGE>

         of any such law, and covenants that it shall not, by resort to any such
         law, hinder, delay or impede the execution of any power herein granted
         to the Trustee, but shall suffer and permit the execution of every such
         power as though no such law has been enacted.

                  SECTION 1015. Suspension of Certain Covenants During
         Investment Grade Status Period.

                  If, during any period, the Notes shall achieve and continue to
         maintain Investment Grade Status and no Event of Default shall have
         occurred and then be continuing (such period being referred to as an
         "Investment Grade Status Period"), then, immediately upon the Company's
         delivery to the Trustee of an Officers' Certificate certifying the
         existence of an Investment Grade Status Period, the covenants set forth
         in Sections 1010 and 1011 shall be suspended and shall not during such
         Investment Grade Status Period be applicable to the Company and its
         Subsidiaries. Further, no failure to comply with Section 1010 or 1011
         during an Investment Grade Status Period by the Company or any
         Subsidiary shall constitute a Default or Event of Default in the event
         that the suspended covenants shall be subsequently reinstated. As soon
         as practicable following the termination of any Investment Grade Status
         Period, the Company shall notify the Trustee thereof in writing;
         provided, however, that the failure of the Company to give such notice
         shall not avoid the reinstatement of the suspended covenants, which
         reinstatement shall occur concurrently with the termination of such
         Investment Grade Status Period.

                  SECTION 1016. Contingent Debt Tax Treatment. The Company
         agrees, and by acceptance of a Note or beneficial interest in a Note,
         each Holder and beneficial holder of the Note is deemed to have agreed,
         with respect to each of the matters set forth in (a) and (b) below, as
         follows:

                  (a) Tax Treatment:

                           (i) to treat the Notes as indebtedness of the Company
         for all tax purposes;

                           (ii) to treat the Notes as indebtedness that is
         subject to the special regulations governing contingent payment debt
         instruments that are contained in U.S. Treasury Regulation section
         1.1275-4; and

                           (iii) to treat any payment to and receipt by a holder
         of Common Stock upon conversion of a Note as a contingent payment

                                       34
<PAGE>

         that may result in an adjustment under U.S. Treasury Regulation section
         1.1275-4(b).

                  (b) Comparable Yield and Projected Payment Schedule. Solely
         for purposes of applying U.S. Treasury Regulation section 1.1275-4 to
         the Notes:

                  (i) for United States Federal Income tax purposes, the Company
         shall accrue interest with respect to outstanding Notes as Tax Original
         Issue Discount according to the "noncontingent bond method," as set
         forth in U.S. Treasury Regulation section 1.1275-4(b);

                  (ii) the Company has determined that the comparable yield, as
         defined in U.S. Treasury Regulation section 1.1275-4(b) (4) (i), for
         the Notes is 8.25%, compounded semiannually;

                  (iii) the Company has determined that the projected payment
         schedule, as defined in U.S. Treasury Regulation section 1.1275-4(b)
         (ii), for the Notes consists of the projected payment schedule referred
         to in (v) below;

                  (iv) the Company acknowledges and agrees, and each Holder and
         any beneficial holder of the Note, by its acceptance of a Note or
         beneficial interest in a Note, shall be deemed to acknowledge and agree
         that (A) the projected payment schedule is determined on a basis of an
         assumption of linear growth of stock price, (B) the comparable yield
         and the projected payment schedule are not determined for any purpose
         other than for the purpose of applying U.S. Treasury Regulation section
         1.1275-4(b) to the Notes and (C) the comparable yield and the projected
         payment schedule do not constitute a projection or representation
         regarding the actual amounts payable on the Notes; and

                  (v) the projected payment schedule, as defined in U.S.
         Treasury Regulation section 1.1275-4(b) (4) (ii) for the Notes is set
         forth in Annex 1 hereto.

                  SECTION 1017. Calculation of Tax Original Issue Discount. The
         Company shall file with the Trustee promptly at the end of each
         calendar year (i) a written notice specifying the amount of Tax
         Original Issue Discount (including daily rates and accrual periods)
         accrued on outstanding Notes as of the end of such year and (ii) such
         other specific information relating to such Tax Original Issue Discount
         as may then be relevant under the Internal Revenue Code of 1986, as
         amended from time to time.

                                       35
<PAGE>

                  SECTION 1018. Rule 144A Information Requirement. Within the
         period prior to the expiration of the holding period applicable to
         sales thereof under Rule 144(k) under the Securities Act (or any
         successor provision), the Company covenants and agrees that it shall,
         during any period in which it is not subject to Section 13 or 15(d)
         under the Exchange Act, make available to any holder or beneficial
         holder of Notes or any Common Stock issued upon conversion thereof
         which continue to be Transfer Restricted Notes in connection with any
         sale thereof, and to any prospective purchaser of such Notes or such
         Common Stock designated by such holder or beneficial holder in such
         connection, the information required pursuant to Rule 144A(d)(4) under
         the Securities Act upon the request of any holder or beneficial holder
         of such Notes or such Common Stock. In addition, upon the request of
         any holder or beneficial holder of such Notes or such Common Stock in
         connection with any sale thereof, the Company shall deliver to such
         holder or beneficial holder a written statement as to whether any
         information made available by the Company to such holder or beneficial
         holder complies with the requirements of Rule 144A(d)(4) under the
         Securities Act.

         Section 1.09. Supplement to Article Eleven of the Original Indenture.

                  (a)      Article Eleven of the Original Indenture is
         supplemented with respect to the Notes by inserting the following
         paragraph at the end of Section 1103 thereof:

                  If any Note selected for partial redemption is thereafter
         surrendered for conversion in part before termination of the conversion
         right with respect to the portion of the Note so selected, the
         converted portion of such Note shall be deemed (so far as may be),
         solely for purposes of determining the aggregate Principal Amount of
         Notes to be redeemed by the Company, to be the portion selected for
         redemption. Notes that have been converted during a selection of Notes
         to be redeemed may be treated by the Trustee as Outstanding for the
         purpose of such selection. Nothing in this Section 1103 shall affect
         the right of any Holder to convert any Notes pursuant to Article
         Fifteen before the termination of the conversion right with respect
         thereto.

                  (b)      The notice of redemption provided for in Section 1104
         of the Original Indenture shall also state with respect to the Notes:
         (1) the Conversion Rate; (2) the name and address of the Conversion
         Agent; (3) that Notes called for redemption may be converted at any
         time before the close of business on the Business Day prior to the
         Redemption Date; (4) that Holders who want to

                                       36
<PAGE>

         convert Notes must satisfy the requirements set forth in paragraph 8 of
         the Notes and (5) that, unless the Company defaults in making payment
         of such Redemption Price, interest, if any, will cease to accrue on and
         after the Redemption Date.

                  (c)      The reference in Section 1105 of the Original
         Indenture relating to the deposit of money before 10:00 a.m. is hereby
         amended to read 11:00 a.m. with respect to the Notes.

                  (d)      New Sections 1109 through 1116 are hereby added to
         Article Eleven of the Original Indenture, but only with respect to the
         Notes, as follows:

                  SECTION 1109. Conversion Arrangement on Call for Redemption.

                  In connection with any redemption of Notes, the Company may
         arrange, in lieu of redemption, for the purchase and conversion of any
         Notes called for redemption by an agreement with one or more investment
         banks or other purchasers to purchase all or a portion of such Notes by
         paying to the Trustee in trust for the Holders whose Notes are to be so
         purchased, on or before the close of business on the Redemption Date,
         an amount that, together with any amounts deposited with the Trustee by
         the Company for the redemption of such Notes, is not less than the
         Redemption Price, plus (unless the Redemption Date is an Interest
         Payment Date) accrued and unpaid interest to but excluding the
         Redemption Date. Notwithstanding anything to the contrary contained in
         this Article Eleven, the obligation of the Company to pay the
         Redemption Price of such Notes, plus all accrued interest, shall be
         deemed to be satisfied and discharged to the extent such amount is so
         paid by such purchasers, but no such agreement shall relieve the
         Company of its obligation to pay such Redemption Price, plus all
         accrued interest, until such amount is so paid by such purchasers. If
         such an agreement is entered into, any Notes not duly surrendered for
         conversion by the Holders thereof may, at the option of the Company, be
         deemed, to the fullest extent permitted by law, acquired by such
         purchasers from such Holders and (notwithstanding anything to the
         contrary contained in Article Fifteen) surrendered by such purchasers
         for conversion, all as of immediately prior to the close of business on
         the Redemption Date, subject to payment of the above amount as
         aforesaid. The Trustee shall hold and pay to the Holders whose Notes
         are selected for redemption any such amount paid to it for purchase and
         conversion in the same manner as it would moneys deposited with it by
         the Company for the redemption of Notes. Without the Trustee's prior
         written consent, no

                                       37
<PAGE>

         arrangement between the Company and such purchasers for the purchase
         and conversion of any Notes shall increase or otherwise affect any of
         the powers, duties, responsibilities or obligations of the Trustee as
         set forth in this Indenture, and the Company agrees to indemnify the
         Trustee from, and hold it harmless against, any loss, liability or
         expense arising out of or in connection with any such arrangement for
         the purchase and conversion of any Notes between the Company and such
         purchasers, including the costs and expenses incurred by the Trustee in
         the defense of any claim or liability arising out of or in connection
         with the exercise or performance of any of its powers, duties,
         responsibilities or obligations under this Indenture.

                  SECTION 1110. Purchase of Notes at Option of the Holder upon
         Change in Control.

                  (a)      If there shall have occurred a Change in Control, the
         Company shall, at the option of the Holder, become obligated to
         repurchase the Notes held by such Holder for cash at the purchase price
         specified in paragraph 6 of the Notes (the "Change in Control Purchase
         Price") on the date that is 35 Business Days after the occurrence of
         the Change in Control (the "Change in Control Purchase Date"), subject
         to satisfaction by or on behalf of the Holder of the requirements set
         forth in Section 1110(c).

                  (b)      Within 15 Business Days after the Change in Control,
         the Company shall mail a written notice of such Change in Control by
         first-class mail to the Trustee and to each Holder (and to beneficial
         owners if required by applicable law). The notice shall include a form
         of Change in Control Purchase Notice to be completed by the Holder and
         shall state:

                  (1)      briefly, the events causing a Change in Control and
         the date such Change in Control is deemed to have occurred for purposes
         of this Section 1110;

                  (2)      the date by which the Change in Control Purchase
         Notice pursuant to this Section 1110 must be given;

                  (3)      the Change in Control Purchase Date;

                  (4)      the Change in Control Purchase Price;

                  (5)      the name and address of the Paying Agent and the
         Conversion Agent and the office or agency referred to in Section 1002;

                                       38
<PAGE>

                  (6)      the Conversion Rate and any adjustments thereto;

                  (7)      that Notes with respect to which a Change in Control
         Purchase Notice has been given by the Holder may be converted into
         Common Stock at any time prior to the close of business on the Change
         in Control Purchase Date only if the Change in Control Purchase Notice
         has been withdrawn by the Holder in accordance with the terms of this
         Indenture;

                  (8)      that Notes must be surrendered to the Paying Agent or
         the office or agency referred to in Section 1002 to collect payment;

                  (9)      that the Change in Control Purchase Price for any
         Note as to which a Change in Control Purchase Notice has been duly
         given and not withdrawn will be paid on the later of (A) the Business
         Day following the Change in Control Purchase Date and (B) promptly
         following the time of surrender of such Note as described in clause (8)
         above;

                  (10)     the procedures the Holder must follow to exercise
         rights under this Section 1110 and a brief description of those rights;

                  (11)     briefly, the conversion rights of the Notes; and

                  (12)     the procedures for withdrawing a Change in Control
         Purchase Notice.

                  (c)      A Holder may exercise its rights specified in Section
         1110(a) upon delivery of a written notice of purchase (a "Change in
         Control Purchase Notice") to the Paying Agent or to the office or
         agency referred to in Section 1002 at any time prior to the close of
         business on the Change in Control Purchase Date, stating:

                  (1)      the certificate number of any Note in certificated
         form which the Holder will deliver to be purchased;

                  (2)      the portion of the Principal Amount of each Note
         which the Holder will deliver to be purchased, which portion must be
         $1,000 or an integral multiple thereof; and

                  (3)      that such Note shall be purchased as of the Change in
         Control Purchase Date pursuant to the terms and conditions specified in
         paragraph 6 of the Note and in this Indenture.

                  Receipt of the Note, prior to, on or after the Change in
         Control Purchase Date (together with all necessary endorsements),

                                       39
<PAGE>

         by the Paying Agent at the offices of the Paying Agent or by the office
         or agency referred to in Section 1002 shall be a condition to the
         receipt by the Holder of the Change in Control Purchase Price therefor,
         together with accrued and unpaid interest through and including the
         Change in Control Purchase Date (subject to the right of Holders as of
         the immediate preceding Regular Record Date to receive such accrued and
         unpaid interest if the Change in Control Purchase Date is an Interest
         Payment Date); provided, however, that such Change in Control Purchase
         Price and accrued and unpaid interest shall be so paid pursuant to this
         Section 1110 only if each Note so delivered to the Paying Agent or such
         office or agency shall conform in all respects to the description
         thereof set forth in the related Change in Control Purchase Notice.

                  The Company shall purchase from the Holder thereof, pursuant
         to this Section 1110, a portion of a Note if the Principal Amount of
         such portion is $1,000 or an integral multiple of $1,000. Provisions of
         this Indenture that apply to the purchase of all of a Note also apply
         to the purchase of such portion of such Note.

                  Any purchase by the Company contemplated pursuant to the
         provisions of this Section 1110 shall be consummated by the payment of
         cash to the Holder according to the second sentence of the first
         paragraph of Section 1111.

                  Notwithstanding anything herein to the contrary, any Holder
         delivering to the Paying Agent or to the office or agency referred to
         in Section 1002 the Change in Control Purchase Notice contemplated by
         this Section 1110(c) shall have the right to withdraw such Change in
         Control Purchase Notice at any time prior to the close of business on
         the Change in Control Purchase Date by delivery of a written notice of
         withdrawal to the Paying Agent or to such office or agency in
         accordance with Section 1111.

                  The Paying Agent shall promptly notify the Company of the
         receipt by it of any Change in Control Purchase Notice or written
         withdrawal thereof.

                  SECTION 1111. Effect of Change in Control Purchase Notice.

                  Upon receipt by the Paying Agent or by the office or agency
         referred to in Section 1002 of the Change in Control Purchase Notice
         according to Section 1110(c), the Holder of the Note in respect of
         which such Change in Control Purchase Notice was given shall (unless
         such Change in Control Purchase Notice is withdrawn as

                                       40
<PAGE>

         specified in the following paragraph) thereafter be entitled to receive
         solely the Change in Control Purchase Price with respect to such Note,
         plus accrued and unpaid interest through and including the Change in
         Control Purchase Date (subject to the right of the Holder as of the
         immediate preceding Regular Record Date to receive such accrued and
         unpaid interest if the Change in Control Purchase Date is an Interest
         Payment Date). Such Change in Control Purchase Price and accrued
         interest shall be paid to such Holder (subject to the right of the
         Holder as of the immediate preceding Regular Record Date to receive
         such accrued and unpaid interest if the Change in Control Purchase Date
         is an Interest Payment Date) on the later of (x) the Business Day
         following the Change in Control Purchase Date with respect to such Note
         and (y) promptly following the time of delivery of such Note to the
         Paying Agent or to the office or agency referred to in Section 1002 by
         the Holder thereof in the manner required by Section 1110(c). Notes in
         respect of which a Change in Control Purchase Notice has been given by
         the Holder thereof may not be converted into shares of Common Stock on
         or after the date of the delivery of such Change in Control Purchase
         Notice unless such Change in Control Purchase Notice has first been
         validly withdrawn as specified in the following paragraph.

                  A Change in Control Purchase Notice may be withdrawn by means
         of a written notice of withdrawal delivered to the office of the Paying
         Agent or to the office or agency referred to in Section 1002 at any
         time prior to the close of business on the Change in Control Purchase
         Date, specifying:

                  (1)      the certificate number of the Note in certificated
         form in respect of which such notice of withdrawal is being submitted;

                  (2)      the Principal Amount of the Note with respect to
         which such notice of withdrawal is being submitted; and

                  (3)      the Principal Amount, if any, of such Note (which
         must be $1,000 or an integral multiple thereof) which remains subject
         to the original Change in Control Purchase Notice and which has been or
         will be delivered for purchase by the Company.

                  There shall be no purchase of any Notes pursuant to Section
         1110 if there has occurred (prior to, on or after, as the case may be,
         the giving, by the Holders of such Notes, of the required Change in
         Control Purchase Notice) and is continuing an Event of Default (other
         than a default in the payment of the Change in Control Purchase Price,
         or accrued and unpaid interest through and including the Change in
         Control Purchase Date (other than overdue interest),

                                       41
<PAGE>

         with respect to such Notes). The Paying Agent will promptly return to
         the respective Holders thereof any Notes (x) with respect to which a
         Change in Control Purchase Notice has been withdrawn in compliance with
         this Indenture, or (y) held by it during the continuance of an Event of
         Default (other than a default in the payment of the Change in Control
         Purchase Price, or accrued and unpaid interest through and including
         the Change in Control Purchase Date (other than overdue interest), with
         respect to such Notes) in which case, upon such return, the Change in
         Control Purchase Notice with respect thereto shall be deemed to have
         been withdrawn.

                  SECTION 1112. Deposit of Change in Control Purchase Price.

                  Prior to 11:00 a.m. (local time in The City of New York) on
         the Business Day following the Change in Control Purchase Date the
         Company shall deposit with the Trustee or with the Paying Agent (or, if
         the Company is acting as Paying Agent, shall segregate and hold in
         trust as provided in Section 1103) an amount of cash in immediately
         available funds sufficient to pay the aggregate Change in Control
         Purchase Price of all the Notes or portions thereof which are to be
         purchased as of the Change in Control Purchase Date, plus (unless the
         Change of Control Purchase Date is an Interest Payment Date) accrued
         and unpaid interest thereon through and including the Change in Control
         Purchase Date.

                  SECTION 1113. Notes Purchased in Part.

                  Any Note which is to be purchased under Section 1110 or 1117
         only in part shall be surrendered at the office of the Paying Agent or
         the office or agency referred to in Section 1002 (with, if the Company
         or the Trustee so requires, due endorsement, or a written instrument of
         transfer in form satisfactory to the Company and the Trustee executed
         by the Holder or such Holder's attorney duly authorized in writing) and
         the Company shall execute and the Trustee shall authenticate and
         deliver to the Holder of such Note, without service charge, a new Note
         or Notes, of any authorized denomination as requested by such Holder in
         aggregate Principal Amount equal to, and in exchange for, the portion
         of the Principal Amount of the Note so surrendered which is not
         purchased.

                                       42
<PAGE>

                  SECTION 1114. Covenant to Comply with Securities Laws upon
         Purchase of Notes.

                  In connection with any offer to purchase or purchase of Notes
         under Section 1110 or 1117, the Company shall (i) comply with Rule
         13e-4 and Rule 14e-1 under the Exchange Act, if applicable, and (ii)
         file the related Schedule TO (or any successor schedule, form or
         report) under the Exchange Act, if applicable.

                  SECTION 1115. Repayment to the Company.

                  The Trustee and the Paying Agent shall return to the Company,
         upon written request, any cash, together with interest on such cash as
         hereinafter provided (subject to the provisions of Section 601(a)), and
         other consideration held by them for the payment of a Change in Control
         Purchase, Redemption Price or Purchase Price or accrued and unpaid
         interest that remain unclaimed as provided in paragraph 12 of the
         Notes, provided, however, that to the extent that the aggregate amount
         of consideration deposited by the Company pursuant to Section 1112 or
         1117(f) exceeds the aggregate Change in Control Purchase Price or
         Repurchase Price, respectively, of the Notes or portions thereof to be
         purchased, plus (unless such date is an Interest Payment Date) accrued
         and unpaid interest thereon through and including such date, then
         promptly after the Business Day following the Change in Control
         Purchase Date or Repurchase Price, as the case may be, the Trustee
         shall return any such excess to the Company together with interest on
         any cash as hereinafter provided thereon (subject to the provisions of
         Section 601(a)). Any cash deposited with the Trustee or with the Paying
         Agent pursuant to Section 1112 or Section 1117(f) or Section 1105 shall
         be invested by the Trustee or Paying Agent, as applicable, in
         short-term obligations of, or fully guaranteed by, the United States of
         America, or commercial paper rated A-1 or better by S&P or P-1 or
         better by Moody's as specifically directed in writing by the Company.
         Interest earned on such investments shall be repaid to the Company
         pursuant to this Section 1115. Except as provided for in this Section
         1115, the Trustee shall be under no liability for interest on any money
         received by it pursuant to this Indenture.

                  SECTION 1116. Outstanding Notes.

                  If the Paying Agent holds, in accordance with this Indenture,
         on a Redemption Date, or on the Business Day following a Change in
         Control Purchase Date or Repurchase Date, or at Stated Maturity, money
         and/or other consideration sufficient to pay the Notes payable on that
         date, then on and after such Redemption Date, Change in

                                       43
<PAGE>

         Control Purchase Date, Repurchase Date or Stated Maturity, as
         applicable, such Notes shall cease to be Outstanding, interest on such
         Notes shall cease to accrue and all other rights of the Holder shall
         terminate (other than the right to receive the applicable Redemption
         Price, Change in Control Purchase Price, Purchase Price or Principal
         Amount, as the case may be, upon delivery of the Note in accordance
         with the terms of this Indenture, plus accrued and unpaid interest to
         but excluding the Redemption Date or through and including the Change
         in Control Purchase Date or the Repurchase Date or the Stated Maturity,
         as the case may be, subject always to the right of Holders as of the
         immediate preceding Regular Record Date to receive such accrued and
         unpaid interest if the applicable date is an Interest Payment Date);
         provided that if the Notes are to be redeemed, notice of such
         redemption has been duly given pursuant to this Indenture or provision
         therefor satisfactory to the Trustee has been made.

                  If a Note is converted in accordance with Article Fifteen,
         then from and after the Conversion Date such Note shall cease to be
         Outstanding and interest shall cease to accrue on such Note and all
         other rights of the Holder shall terminate.

                  SECTION 1117. Repurchase of Notes at Option of the Holder.

                  (a)      General. The Company shall, at the option of the
         Holder, become obligated to repurchase the Notes held by such Holder on
         May 1 of 2008, 2010, 2013, 2018, 2023 or 2028 (each, a "Repurchase
         Date") at the purchase price specified in paragraph 6 of the Notes (the
         "Purchase Price") upon:

                  (1)      delivery by the Holder of a written notice of
         purchase (a "Repurchase Notice") to the Paying Agent or to the office
         or agency referred to in Section 1002 at any time from the opening of
         business on the date that is 20 Business Days prior to the Repurchase
         Date until the close of business on such Repurchase Date, stating:

                           (A)      the certificate number of any Note in
                  certificated form which the Holder will deliver to be
                  repurchased;

                           (B)      the portion of the Principal Amount of the
                  Note which the Holder will deliver to be repurchased, which
                  portion must be $1,000 in Principal Amount or an integral
                  multiple thereof;

                                       44
<PAGE>

                           (C)      that such Note shall be repurchased as of
                  the Repurchase Date pursuant to the terms and conditions
                  specified in paragraph 6 of the Note and in this Indenture;
                  and

                           (D)      if the Company elects, pursuant to a Company
                  Notice, to pay the Purchase Price to be paid as of such
                  Repurchase Date, in whole or in part, in Common Stock,
                  whether, in the event such portion of the Purchase Price shall
                  ultimately be payable to such Holder in cash because any of
                  the conditions to the payment of the Purchase Price in Common
                  Stock are not satisfied prior to or on the Repurchase Date, as
                  set forth in Section 1117(c), such Holder elects (x) to
                  withdraw such Repurchase Notice as to some or all of the Notes
                  to which such Repurchase Notice relates (stating the Principal
                  Amount and certificate numbers of any certificated Notes as to
                  which such withdrawal shall relate) or (y) to receive cash in
                  respect of the entire Purchase Price for all Notes to which
                  such Repurchase Notice relates; and

                  (2)      receipt of such Notes, prior to, on or after the
         Repurchase Date (together with all necessary endorsements), by the
         Paying Agent at the offices of the Paying Agent or by the office or
         agency referred to in Section 1002, such delivery being a condition to
         receipt by the Holder of the Purchase Price therefor, together with
         accrued and unpaid interest through and including the Repurchase Date
         (subject to the right of Holders as of the immediate preceding Regular
         Record Date to receive such accrued and unpaid interest if the
         Repurchase Date is an Interest Payment Date); provided, however, that
         such Purchase Price and accrued and unpaid interest shall be so paid
         pursuant to this Section 1117 only if the Note so delivered to the
         Paying Agent or to the office or agency referred to in Section 1002
         shall conform in all respects to the description thereof in the related
         Repurchase Notice.

                  If a Holder, in such Holder's Repurchase Notice, fails to
         indicate such Holder's choice with respect to the election set forth in
         clause (D) of Section 1117(a)(1), such Holder shall be deemed to have
         elected to receive cash in respect of the entire Purchase Price for all
         Notes subject to such Repurchase Notice in the circumstances set forth
         in such clause (D).

                  The Company shall purchase from the Holder thereof, pursuant
         to this Section 1117, a portion of a Note if the Principal Amount of
         such portion is $1,000 or an integral multiple of $1,000.

                                       45
<PAGE>

         Provisions of this Indenture that apply to the purchase of all of a
         Note also apply to the repurchase of such portion of such Note.

                  Any purchase by the Company contemplated pursuant to the
         provisions of this Section 1117 shall be consummated by the delivery of
         the consideration to be received by the Holder according to the
         immediately following paragraph.

                  Upon receipt by the Paying Agent or by the office or agency
         referred to in Section 1002 of a Repurchase Notice according to this
         Section 1117(a), the Holder of the Note in respect of which such
         Repurchase Notice was given shall (unless such Repurchase Notice is
         withdrawn as specified in the following paragraph) thereafter be
         entitled to receive solely the Repurchase Price with respect to such
         Note, plus accrued and unpaid interest through and including the
         Repurchase Date (subject to the right of the Holder as of the immediate
         preceding Regular Record Date to receive such accrued and unpaid
         interest if the Repurchase Date is an Interest Payment Date). Such
         Repurchase Price and accrued and unpaid interest shall be paid to such
         Holder (subject to the right of the Holder as of the immediate
         preceding Regular Record Date to receive such accrued and unpaid
         interest if the Repurchase Date is an Interest Payment Date) on the
         later of (x) the Business Day following the Repurchase Date with
         respect to such Note and (y) promptly following the time of delivery of
         such Note to the Paying Agent or to the office or agency referred to in
         Section 1002 by the Holder thereof in the manner required by this
         Section 1117. Notes in respect of which a Repurchase Notice has been
         given by the Holder thereof may not be converted into shares of Common
         Stock on or after the date of the delivery of such Repurchase Notice
         unless such Repurchase Notice has first been validly withdrawn as
         specified in the following paragraph.

                  A Repurchase Notice may be withdrawn by means of a written
         notice of withdrawal delivered to the office of the Paying Agent or to
         the office or agency referred to in Section 1002 at any time prior to
         the close of business on the Repurchase Date, specifying:

                  (1)      the certificate number of any Note in certificated
         form in respect of which such notice of withdrawal is being submitted;

                  (2)      the Principal Amount of the Note with respect to
         which such notice of withdrawal is being submitted; and

                                       46
<PAGE>

                  (3)      the Principal Amount, if any, of such Note (which
         must be $1,000 or an integral multiple thereof) which remains subject
         to the original Repurchase Notice and which has been or will be
         delivered for purchase by the Company.

                  The Paying Agent or the office or agency referred to in
         Section 1002 shall promptly notify the Company of the receipt by it of
         any Repurchase Notice or written notice of withdrawal thereof.

                  (b)      Company's Right to Elect Manner of Payment of
         Purchase Price. The Company may elect with respect to any Repurchase
         Date to pay the Purchase Price in respect of the Notes to be purchased
         pursuant to Section 1117(a) as of such Repurchase Date, in U.S. legal
         tender ("cash") or Common Stock, or in any combination of cash and
         Common Stock, subject to the conditions set forth in Section 1117(c).
         The Company shall designate, in the Company Notice delivered pursuant
         to Section 1117(d), (i) whether the Company will repurchase the Notes
         for cash or Common Stock or a combination thereof and (ii) if a
         combination thereof, the relative percentages of the Purchase Price of
         Notes which it will pay in cash and Common Stock; provided that the
         Company will pay cash for fractional interests in shares of Common
         Stock. Each Holder whose Notes are repurchased pursuant to this Section
         1117 shall receive the same percentage of cash and/or Common Stock in
         payment of the Purchase Price for such Notes, except (i) as provided in
         Section 1117(c) with regard to the payment of cash in lieu of
         fractional interests in shares of Common Stock and (ii) that, in the
         event that the Company is unable to repurchase the Notes of a Holder or
         Holders for Common Stock because any necessary qualifications or
         registrations of the Common Stock under applicable federal or state
         securities laws cannot be obtained, the Company may repurchase the
         Notes of such Holder or Holders for cash. The Company may not change
         its election with respect to the consideration (or components or
         percentages of components thereof) to be paid once the Company has
         given its Company Notice to Holders, except pursuant to this Section
         1117(b) or Section 1117(c).

                  If the Company elects to pay the Purchase Price, or a
         specified percentage thereof, in Common Stock, the Company shall, at
         least one Business Day before the Company Notice Date, deliver an
         Officers' Certificate to the Trustee specifying that the conditions to
         such manner of payment set forth in Section 1117(c) have been complied
         with and/or that the Company will use commercially reasonable efforts
         to cause them to be complied with. In addition, if the Company desires
         the Trustee to give the Company Notice

                                       47
<PAGE>

         required by Section 1117(d), the Company shall so inform the Trustee at
         such time.

                  (c)      Payment By Issuance of Common Stock. If, pursuant to
         Section 1117(b), the Company elects to pay the Purchase Price of Notes
         in respect of which a Repurchase Notice pursuant to Section 1117(a) has
         been given, or a specified percentage thereof, by the issuance of a
         number of shares of Common Stock, such number of shares of Common Stock
         shall be equal to the quotient obtained by dividing (i) the amount of
         cash to which the Holders would have been entitled had the Company
         elected to pay all or such specified percentage, as the case may be, of
         the Purchase Price of such Notes in cash by (ii) the Market Price of a
         share of Common Stock as of the applicable Repurchase Date, subject to
         the next succeeding paragraph.

                  The Company will not issue a fractional share of Common Stock
         in payment of the Purchase Price. Instead the Company will pay cash for
         the current market value of the fractional share. The current market
         value of a fraction of a share shall be determined by multiplying the
         Market Price as of the applicable Repurchase Date by such fraction and
         rounding the product to the nearest whole cent. It is understood that
         if a Holder elects to have more than one Note repurchased, the number
         of shares of Common Stock shall be based on the aggregate amount of
         Notes to be repurchased.

                  The Company's right to exercise its election to repurchase the
         Notes pursuant to Section 1117 through the issuance of shares of Common
         Stock shall be conditioned upon:

                  (i)      the Company having given timely Company Notice of
         election to purchase all or a specified percentage of the Securities
         with Common Stock as provided herein;

                  (ii)     the registration of the shares of Common Stock to be
         issued in respect of the payment of the specified percentage of the
         Purchase Price under the Exchange Act and the Securities Act, in each
         case, if required for the initial issuance thereof;

                  (iii)    any necessary qualification or registration under
         applicable state securities laws or the availability of an exemption
         from such qualification and registration; and

                  (iv)     the receipt by the Trustee of an Officers'
         Certificate and an Opinion of Counsel each stating that (A) the terms
         of the issuance of the Common Stock are in conformity with this
         Indenture

                                       48
<PAGE>

         and (B) the shares of Common Stock to be issued by the Company in
         payment of the specified percentage of the Purchase Price in respect of
         the Notes have been duly authorized and, when issued and delivered
         pursuant to the terms of this Indenture in payment of the specified
         percentage of the Purchase Price in respect of the Notes, will be
         validly issued, fully paid and nonassessable, and, in the case of such
         Officers' Certificate, stating that conditions (i), (ii) and (iii)
         above have been satisfied and, in the case of such Opinion of Counsel,
         stating that conditions (ii) and (iii) above have been satisfied.

                  The Company may elect to pay the Purchase Price (or any
         portion thereof) in Common Stock only if the Common Stock is listed on
         a United States national securities exchange or quoted in an
         inter-dealer quotation system of any registered United States national
         securities association. If such conditions are not satisfied with
         respect to a Holder or Holders prior to or on the Repurchase Date and
         the Company elected to repurchase the Notes to be repurchased as of
         such Repurchase Date pursuant to this Section 1117 through the issuance
         of shares of Common Stock, the Company shall pay the entire Purchase
         Price in respect of such Notes of such Holder or Holders in cash.

                  If required, the Company shall (i) disseminate the number of
         shares of Common Stock to be issued for each $1,000 Principal Amount of
         Notes as soon as practicable after determination thereof by news
         release or via the Company's website in accordance with the Company's
         customary practices and (ii) concurrently notify each securities
         exchange on which the Common Stock is then listed of such information.

                  (d)      Notice of Election. The Company's notices of election
         to repurchase with cash or Common Stock or any combination thereof
         (each, a "Company Notice") shall be sent to the Holders (and to
         beneficial owners as required by applicable law) in the manner provided
         in Section 107 hereof not less than 20 Business Days prior to the
         Repurchase Date (the "Company Notice Date"). In the event the Company
         has elected to pay a Purchase Price (or a specified percentage thereof)
         with Common Stock, the Company Notice shall:

                  (1)      state that each Holder will receive Common Stock with
         a Market Price determined as of a specified date prior to the
         Repurchase Date equal to such specified percentage of the Purchase
         Price of the Notes held by such Holder (except any cash amount to be
         paid in lieu of a fractional share); and

                                       49
<PAGE>

                  (2)      set forth the method of calculating the Market Price
         and state that because the Market Price of Common Stock will be
         determined prior to the Repurchase Date, the Holders will bear the
         market risk with respect to the value of the Common Stock to be
         received from the date such Market Price is determined to the
         Repurchase Date.

                  In any case, each Company Notice shall include a form of
         Repurchase Notice to be completed by a Holder and shall state:

                  (i)      the Purchase Price and Conversion Rate;

                  (ii)     the name and address of the Paying Agent and the
         Conversion Agent and the office or agency referred to in Section 1002;

                  (iii)    that Notes as to which a Repurchase Notice has been
         given may be converted only if the applicable Repurchase Notice has
         been withdrawn in accordance with the terms of this Indenture;

                  (iv)     that Notes must be surrendered to the Paying Agent or
         the office or agency referred to in Section 1002 to collect payment;

                  (v)      that the Purchase Price for any Note as to which a
         Repurchase Notice has been given and not withdrawn will be paid on the
         later of (A) the Business Day following the Repurchase Date or (B)
         promptly following the time of delivery of such Note as described in
         clause (iv) above;

                  (vi)     the procedures the Holder must follow under this
         Section 1117;

                  (vii)    briefly, the conversion rights of the Notes; and

                  (viii)   the procedures for withdrawing a Repurchase Notice
         (including, without limitation, for a conditional withdrawal pursuant
         to the terms of Section 1117(a)(1)(D) or Section 1119 hereof).

                  At the Company's request, the Trustee shall give the Company
         Notice in the Company's name and at the Company's expense; provided,
         however, that, in all cases, the text of the Company Notice shall be
         prepared by the Company.

                  (e)      Covenants of the Company. All shares of Common Stock
         delivered upon repurchase of the Notes shall be newly issued shares or
         treasury shares, shall be fully paid and nonassessable and

                                       50
<PAGE>

         shall be free from preemptive rights and free of any lien or adverse
         claim.

                  (f)      Procedure Upon Purchase. On the Business Day
         following the Repurchase Date, the Company shall deposit with the
         Trustee or with the Paying Agent (or, if the Company is acting as
         Paying Agent, shall segregate and hold in trust as provided in Section
         1103) cash (in respect of a cash purchase or for fractional interests,
         as applicable), or shares of Common Stock, or a combination thereof, as
         applicable, sufficient to pay the aggregate Purchase Price in respect
         of the Notes or portions thereof to be repurchased pursuant to this
         Section 1117, plus (unless the Repurchase Date is an Interest Payment
         Date) accrued and unpaid interest thereon through and including the
         Repurchase Date. As soon as practicable after the Repurchase Date, the
         Company shall deliver to each Holder entitled to receive Common Stock,
         through the Paying Agent, a certificate for the number of full shares
         of Common Stock, as applicable, issuable in payment of such Purchase
         Price. The Person in whose name the certificate for Common Stock is
         registered shall be treated as a holder of record on the Business Day
         following the Repurchase Date. No payment or adjustment will be made
         for dividends on the Common Stock the record date for which occurred on
         or prior to the Repurchase Date.

                  (g)      Taxes. If a Holder of a Note is paid in Common Stock,
         the Company shall pay any documentary, stamp or similar issue or
         transfer tax due on such issue of shares of Common Stock. However, the
         Holder shall pay any such tax which is due because the Holder requests
         the shares of Common Stock to be issued in a name other than the
         Holder's name. The Paying Agent may, and, if so instructed by the
         Company, shall, refuse to deliver the certificates representing the
         Common Stock being issued in a name other than the Holder's name until
         the Paying Agent receives a sum sufficient to pay any tax which will be
         due because the shares of Common Stock are to be issued in a name other
         than the Holder's name. Nothing herein shall preclude any tax
         withholding required by law or regulations.

         Section 1.10. New Article Fourteen.

                  The Original Indenture is supplemented with respect to the
         Notes by inserting the following Article Fourteen:

                                       51
<PAGE>

                                ARTICLE FOURTEEN

                              SUBSIDIARY GUARANTEES

                  SECTION 1401. Subsidiary Guarantees.

                  Each Subsidiary Guarantor, jointly and severally, hereby
         unconditionally guarantees to each Holder of a Note authenticated and
         delivered by the Trustee and to the Trustee and their respective
         successors and assigns, irrespective of the validity and enforceability
         of this Indenture, the Notes or the obligations of the Company
         hereunder or thereunder, that: (a) the principal of and any premium and
         interest on the Notes shall be promptly paid in full when due, whether
         at Stated Maturity, by acceleration, redemption or otherwise, and
         interest on the overdue principal of and interest on premium and
         interest on the Notes, if any, if lawful, and all other obligations of
         the Company to the Holders or the Trustee hereunder or thereunder shall
         be promptly paid in full or performed, all in accordance with the terms
         hereof and thereof; and (b) in case of any extension of time of payment
         or renewal of any Notes or any of such other obligations, that the same
         shall be promptly paid in full when due or performed in accordance with
         the terms of the extension or renewal, whether at stated maturity, by
         acceleration or otherwise. Failing payment when due of any amount so
         guaranteed or any performance so guaranteed for whatever reason, the
         Subsidiary Guarantors shall be jointly and severally obligated to pay
         the same immediately. The Subsidiary Guarantors hereby agree that their
         obligations hereunder shall be unconditional, irrespective of the
         validity, regularity or enforceability of the Notes or this Indenture,
         the absence of any action to enforce the same, any waiver or consent by
         any Holder with respect to any provisions hereof or thereof, the
         recovery of any judgment against the Company, any action to enforce the
         same or any other circumstance which might otherwise constitute a legal
         or equitable discharge or defense of a Subsidiary Guarantor. Each
         Subsidiary Guarantor hereby waives diligence, presentment, demand of
         payment, filing of claims with a court in the event of insolvency or
         bankruptcy of the Company, any right to require a proceeding first
         against the Company, protest, notice and all demands whatsoever and
         covenants that this Subsidiary Guarantee shall not be discharged (other
         than in accordance with Article Four or Section 1404 of this Indenture)
         except by complete performance of the obligations contained in the
         Notes and this Indenture. If any Holder or the Trustee is required by
         any court or otherwise to return to the Company or Subsidiary
         Guarantors, or any custodian, trustee, liquidator or other similar
         official acting in relation to either the Company or Subsidiary
         Guarantors, any amount

                                       52
<PAGE>

         paid by either to the Trustee or such Holder, this Subsidiary
         Guarantee, to the extent theretofore discharged, shall be reinstated in
         full force and effect. Each Subsidiary Guarantor further agrees that,
         as between the Subsidiary Guarantors, on the one hand, and the Holders
         and the Trustee, on the other hand, (x) the maturity of the obligations
         guaranteed hereby may be accelerated as provided in Article Five for
         the purposes of this Subsidiary Guarantee, notwithstanding any stay,
         injunction or other prohibition preventing such acceleration in respect
         of the obligations guaranteed hereby and (y) in the event of any
         declaration of acceleration of such obligations as provided in Article
         Five, such obligations (whether or not due and payable) shall forthwith
         become due and payable by the Subsidiary Guarantors for the purpose of
         this Subsidiary Guarantee. In order to provide for just and equitable
         contribution among the Subsidiary Guarantors, in the event any payment
         or distribution is made by any Subsidiary Guarantor (a "Funding
         Subsidiary Guarantor") under its Subsidiary Guarantee, such Funding
         Subsidiary Guarantor shall be entitled to a contribution from each
         other Subsidiary Guarantor in a pro rata amount based on the Adjusted
         Net Assets of each Subsidiary Guarantor (including the Funding
         Subsidiary Guarantor) for all payments, damages and expenses incurred
         by the Funding Subsidiary Guarantor in discharging the Company's
         obligations with respect to the Notes or any other Subsidiary
         Guarantor's obligations with respect to any Subsidiary Guarantee. Each
         Subsidiary Guarantor agrees that it will not be entitled to exercise
         any right of subrogation or contribution in relation to the Holders of
         Notes in respect of any obligations guaranteed hereby until payment in
         full of all amounts guaranteed under this Section 1401.

                  SECTION 1402. Execution and Delivery of Subsidiary Guarantees.

                  To evidence its Subsidiary Guarantee set forth in Section
         1401, each Subsidiary Guarantor hereby agrees that a notation of such
         Subsidiary Guarantee substantially in the form of Exhibit B to the
         Sixth Supplemental Indenture shall be endorsed by an officer of such
         Subsidiary Guarantor on each Note thereafter authenticated and
         delivered by the Trustee, that a supplement to this Indenture shall be
         executed on behalf of such Subsidiary Guarantor by its duly authorized
         officer in accordance with Section 1010 hereof and that such Subsidiary
         Guarantor shall deliver to the Trustee the Opinion of Counsel required
         by Section 1010 hereof.

                  Each Subsidiary Guarantor hereby agrees that its Subsidiary
         Guarantee set forth in Section 1401 shall remain in full force and

                                       53
<PAGE>

         effect notwithstanding any failure to endorse on each Note a notation
         of such Subsidiary Guarantee.

                  If an officer whose signature is on a supplement to this
         Indenture or on the notation of Subsidiary Guarantee no longer holds
         that office at the time the Trustee authenticates the Note on which a
         notation of Subsidiary Guarantee is endorsed, the Subsidiary Guarantee
         shall be valid nevertheless.

                  The delivery of any Note by the Trustee, after the
         authentication thereof hereunder and whether upon original issue,
         registration of transfer, exchange or otherwise, shall constitute due
         delivery of the Subsidiary Guarantee set forth in this Indenture on
         behalf of each Person that is then a Subsidiary Guarantor.

                  SECTION 1403. Subsidiary Guarantors May Consolidate, etc., on
         Certain Terms.

                  No Subsidiary Guarantor may consolidate with or merge with or
         into (whether or not such Subsidiary Guarantor is the surviving
         Person), another Person whether or not affiliated with such Subsidiary
         Guarantor unless:

                  (a)      subject to the provisions of Section 1404 hereof, the
         Person formed by or surviving any such consolidation or merger (if
         other than such Subsidiary Guarantor) assumes all the obligations of
         such Subsidiary Guarantor, pursuant to a supplemental indenture in form
         and substance reasonably satisfactory to the Trustee in respect of the
         Notes, this Indenture and such Subsidiary Guarantor's Subsidiary
         Guarantee;

                  (b)      immediately after giving effect to such transaction,
         no Default or Event of Default exists; and

                  (c)      the Company has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that such
         consolidation or merger and, if a supplemental indenture is required in
         connection with such transaction, such supplemental indenture, comply
         with this Article and that all conditions precedent herein provided for
         relating to such transaction have been complied with.

                  Notwithstanding the foregoing, no Subsidiary Guarantor shall
         be permitted to consolidate with or merge with or into (whether or not
         such Subsidiary Guarantor is the surviving Person) another Person
         pursuant to the preceding sentence if such consolidation or merger is
         not permitted by Article Eight hereof.

                                       54
<PAGE>

                  In case of any such consolidation or merger and upon the
         assumption by the successor Person, by supplemental indenture, executed
         and delivered to the Trustee and satisfactory in form to the Trustee,
         of the obligations of the Subsidiary Guarantor in respect of the Notes,
         this Indenture and such Subsidiary Guarantor's Subsidiary Guarantee,
         such successor Person shall succeed to and be substituted for the
         Subsidiary Guarantor with the same effect as if it had been named
         herein as a Subsidiary Guarantor. Such successor Person thereupon may
         cause to be signed any or all of the Subsidiary Guarantees to be
         endorsed upon all of the Notes issuable hereunder which theretofore
         shall not have been signed by the Company and delivered to the Trustee.
         All the Subsidiary Guarantees so issued shall in all respects have the
         same legal rank and benefit under this Indenture as the Subsidiary
         Guarantees theretofore and thereafter issued in accordance with the
         terms of this Indenture as though all of such Subsidiary Guarantees had
         been issued at the date of the execution hereof.

                  Except as set forth in Articles Eight and Ten hereof, nothing
         contained in this Indenture or in any of the Notes shall prevent any
         consolidation or merger of a Subsidiary Guarantor with or into the
         Company or another Subsidiary Guarantor, or shall prevent any sale or
         other disposition of all or substantially all of the assets of a
         Subsidiary Guarantor to the Company.

                  SECTION 1404. Releases of Subsidiary Guarantees.

                  In the event of a sale or other disposition of all or
         substantially all of the assets of any Subsidiary Guarantor to a Person
         other than a Subsidiary or the Company in a transaction that does not
         violate any provisions of this Indenture, by way of merger,
         consolidation or otherwise, or a sale or other disposition (including,
         without limitation, by foreclosure) of all of the Capital Stock of any
         Subsidiary Guarantor to a Person other than a Subsidiary or the
         Company, then such Subsidiary Guarantor shall be released and relieved
         of any obligations under this Indenture and its Subsidiary Guarantee;
         provided that all obligations of such Subsidiary Guarantor under all of
         its guarantees of, and under all pledges of assets or other security
         interests that secure, any other Indebtedness of the Company or any
         other Subsidiary shall also terminate or be released upon such sale or
         other disposition. Upon delivery by the Company to the Trustee of an
         Officers' Certificate and an Opinion of Counsel to the effect that such
         sale or other disposition was made in accordance with the provisions of
         this Indenture, the Trustee shall execute any documents reasonably
         required in order to evidence the

                                       55
<PAGE>

         release of any Subsidiary Guarantor from its obligations under this
         Indenture and its Subsidiary Guarantee.

                  In the event of a release or discharge in full of all
         obligations of any Subsidiary Guarantor in respect of all of its
         guarantees of Indebtedness of the Company (other than the Notes) and
         the repayment of all Indebtedness, other than Permitted Subsidiary
         Indebtedness, of such Subsidiary Guarantor, such Subsidiary Guarantor
         shall, upon the written request of the Company to the Trustee, be
         released and relieved of any obligation under this Indenture and its
         Subsidiary Guarantee. Upon delivery by the Company to the Trustee of an
         Officers' Certificate to the effect that such Subsidiary Guarantor has
         been released or discharged in full from all of its obligations under
         all of its guarantees of Indebtedness of the Company (other than the
         Notes) and that all Indebtedness, other than Permitted Subsidiary
         Indebtedness, of such Subsidiary Guarantor has been repaid, the Trustee
         shall execute any documents reasonably required in order to evidence
         the release of such Subsidiary Guarantor from its obligations under
         this Indenture and its Subsidiary Guarantee.

                  Any Subsidiary Guarantor that is designated a Non-Recourse
         Subsidiary in accordance with the terms of this Indenture shall be
         released from and relieved of its obligations under this Indenture and
         its Subsidiary Guarantee. Upon effectiveness of such designation, the
         Trustee shall execute any documents reasonably required in order to
         evidence the release of such Subsidiary Guarantor from its obligations
         under this Indenture and its Subsidiary Guarantee.

                  Upon the commencement of an Investment Grade Status Period and
         delivery of the Officer's Certificate provided for in the first
         sentence of Section 1015, each Subsidiary Guarantor shall be released
         from and relieved of its obligations under this Indenture and its
         Subsidiary Guarantee. Upon delivery by the Company to the Trustee of an
         Officer's Certificate certifying the existence of an Investment Grade
         Status Period (which can be the same Officer's Certificate delivered
         pursuant to Section 1015), the Trustee shall execute any documents
         reasonably required in order to evidence the release of each Subsidiary
         Guarantor from its obligations under this Indenture and its Subsidiary
         Guarantee.

                  Any Subsidiary Guarantor not released from its obligations
         under its Subsidiary Guarantee shall remain liable for the full amount
         of principal of and any premium and interest on the Notes and for the
         other obligations of any Subsidiary Guarantor under this Indenture.

                                       56
<PAGE>

                  SECTION 1405. Limitation on Subsidiary Guarantor Liability.

                  For purposes hereof, each Subsidiary Guarantor's liability
         shall be that amount from time to time equal to the aggregate liability
         of such Subsidiary Guarantor thereunder, but shall be limited to the
         lesser of (i) the aggregate amount of the obligations of the Company
         under the Notes and this Indenture and (ii) the amount, if any, which
         would not have (A) rendered such Subsidiary Guarantor "insolvent" (as
         such term is defined in the Bankruptcy Act and in the Debtor and
         Creditor Law of the State of New York) or (B) left it with unreasonably
         small capital at the time its Subsidiary Guarantee of the Notes was
         entered into, after giving effect to the incurrence of existing
         Indebtedness immediately prior to such time; provided that, it shall be
         a presumption in any lawsuit or other proceeding in which such
         Subsidiary Guarantor is a party that the amount guaranteed pursuant to
         its Subsidiary Guarantee is the amount set forth in clause (i) above
         unless any creditor, or representative of creditors of such Subsidiary
         Guarantor, or debtor in possession or trustee in bankruptcy of such
         Subsidiary Guarantor, otherwise proves in such a lawsuit that the
         aggregate liability of such Subsidiary Guarantor is limited to the
         amount set forth in clause (ii). In making any determination as to the
         solvency or sufficiency of capital of a Subsidiary Guarantor in
         accordance with the previous sentence, the right of such Subsidiary
         Guarantor to contribution from other Subsidiary Guarantors and any
         other rights such Subsidiary Guarantor may have, contractual or
         otherwise, shall be taken into account.

         Section 1.11. New Article Fifteen The Original Indenture is
supplemented with respect to the Notes by inserting the following Article
Fifteen:

                                 ARTICLE FIFTEEN

                                   CONVERSION

                  SECTION 1501. Conversion Privilege.

                  A Holder of a Note may convert such Note into shares of Common
         Stock, but only during the period stated in paragraph 8 of the Notes
         and only upon the occurrence of one of the events set forth in this
         Section 1501. The number of shares of Common Stock issuable upon
         conversion of a Note per $1,000 of Principal Amount thereof (the
         "Conversion Rate") shall be that set forth in paragraph 8 in the Notes,
         subject to adjustment as herein set forth. The

                                       57
<PAGE>

         "Conversion Price" in effect at any time shall be equal to $1,000
         divided by the Conversion Rate.

                  A Holder may convert a portion of the Principal Amount of a
         Note if the portion is $1,000 or an integral multiple of $1,000.
         Provisions of this Indenture that apply to conversion of all of a Note
         also apply to conversion of a portion of a Note.

                  "Average Sale Price" means the average of the Sale Prices of a
         share of Common Stock for the shorter of:

                  (i)      30 consecutive Trading Days ending on the last full
         Trading Day prior to the Time of Determination with respect to the
         rights, options, warrants, distribution or repurchase in respect of
         which the Average Sale Price is being calculated, or

                  (ii)     the period (x) commencing on the date next succeeding
         the first public announcement of (a) the issuance of rights, options or
         warrants, (b) the distribution or (c) the repurchase, in each case, in
         respect of which the Average Sale Price is being calculated and (y)
         proceeding through the last full Trading Day prior to the Time of
         Determination with respect to the rights, warrants, distribution or
         repurchase in respect of which the Average Sale Price is being
         calculated, or

                  (iii)    the period, if any, (x) commencing on the date next
         succeeding (i) the Ex-Dividend Time with respect to the next preceding
         (a) issuance of rights, warrants or options or (b) distribution, or
         (ii) the trade date with respect to the next preceding repurchase, in
         each case, for which an adjustment is required by the provisions of
         Section 1506(4), 1507, 1508 or 1509 and (y) proceeding through the last
         full Trading Day prior to the Time of Determination with respect to the
         rights, warrants, options, distribution or repurchase in respect of
         which the Average Sale Price is being calculated.

                  If the Ex-Dividend Time (or in the case of a subdivision,
         combination or reclassification, the effective date with respect
         thereto) with respect to a dividend, subdivision, combination or
         reclassification to which Section 1506(1), (2), (3) or (5) applies
         occurs during the period applicable for calculating "Average Sale
         Price" pursuant to the definition in the preceding sentence, "Average
         Sale Price" shall be calculated for such period in a manner determined
         in good faith by the Board of Directors to reflect the impact of such
         dividend, subdivision, combination or reclassification on the Sale
         Price of a share of Common Stock during such period.

                                       58
<PAGE>

                  "Time of Determination" means the time and date of (x) the
         earlier of (i) the determination of stockholders entitled to receive
         rights, warrants or options or a distribution, in each case to which
         Sections 1507 and 1508 apply and (ii) the time ("Ex-Dividend Time")
         immediately prior to the commencement of "ex-dividend" trading for such
         rights, options, warrants or distribution on the New York Stock
         Exchange or such other national or regional exchange or market on which
         the shares of the Common Stock are then listed or quoted or (y) the
         trade date with respect to the repurchase, in the case of an adjustment
         pursuant to Section 1509.

                  The Notes shall be convertible only during the period
         specified in paragraph 8 of the Notes and only:

                  (i)      during any fiscal quarter of the Company commencing
         after June 30, 2003 for which the Sale Price exceeded 120% of the
         Conversion Price for at least 20 Trading Days in the 30 consecutive
         Trading Day period ending on the last Trading Day of the preceding
         fiscal quarter (it being understood for purposes of this Section 15.01
         that the Conversion Price in effect at the close of business on each of
         the 30 consecutive Trading Days shall be used);

                  (ii)     as described below after the occurrence of the 98%
         Trading Exception;

                  (iii)    if such Note has been called for redemption, at any
         time on or after the date the notice of redemption has been given until
         the close of business on the Business Day immediately preceding the
         Redemption Date; or

                  (iv)     as described below after the occurrence of any of the
         specified corporate transactions described below.

                  The Company shall, within the first five Business Days of each
         fiscal quarter, determine whether the Notes shall be convertible during
         such fiscal quarter as a result of the occurrence of an event specified
         in clause (i) above, and, if the Notes shall be so convertible, the
         Company shall promptly deliver to the Trustee written notice thereof.
         Whenever the Notes shall become convertible pursuant to this Section
         1501, the Company or, at the Company's request, the Trustee in the name
         and at the expense of the Company, shall notify the Holders of the
         event triggering such convertibility in the manner provided in Section
         107.

                                       59
<PAGE>

         Conversion after the Occurrence of the 98% Trading Exception

                  Notes may be surrendered for conversion during the five
         Business Day period (but only to the extent such five Business Day
         period occurs during the period specified in paragraph 8 of the Notes)
         immediately after any five consecutive Trading Day period in which the
         Trading Price per $1,000 Principal Amount of Notes, as determined
         following a request by a Holder according to the procedures described
         below, for each day of such five Trading Day period was less than 98%
         of the product of the Sale Price and the Conversion Rate as of such
         Trading Day (the "98% Trading Exception").

                  Notwithstanding the foregoing, if, on any Conversion Date that
         is on or after May 1, 2028, the Sale Price of a share of Common Stock
         is greater than the Conversion Price, the Holders of Notes surrendered
         for conversion shall receive, in lieu of Common Stock based on the
         Conversion Rate, cash or Common Stock or a combination of cash and
         Common Stock, at the Company's option, with a value equal to the
         Principal Amount of such Notes, plus accrued and unpaid interest as of
         the Conversion Date ("Principal Value Conversion"). If a Holder
         surrenders its Notes for a Principal Value Conversion, the Company
         shall notify such Holder by the second Trading Day following the
         Conversion Date whether the Company will pay such Holder all or a
         portion of the Principal Amount plus accrued and unpaid interest in
         cash, Common Stock or a combination of cash and Common Stock, and in
         what relative percentages. Any Common Stock delivered upon a Principal
         Value Conversion will be valued at the greater of the Conversion Price
         on the Conversion Date and the Applicable Stock Price as of the
         Conversion Date. The Company will pay such Holder any portion of the
         Principal Amount plus accrued and unpaid interest to be paid in cash,
         and deliver Common Stock with respect to any portion of the Principal
         Amount plus accrued and unpaid interest to be paid in Common Stock, no
         later than the third Business Day following the determination of the
         Applicable Stock Price.

                  In connection with any conversion pursuant to the immediately
         preceding two paragraphs of this Section 1501, the Trustee shall not
         have any obligation to determine the Trading Price unless the Company
         has requested such determination, and the Company shall have no
         obligation to make such request unless a Holder provides the Company
         with reasonable evidence that the 98% Trading Exception will apply. At
         such time, the Company shall instruct the Trustee to determine the
         Trading Price beginning on the next Trading Day and on each successive
         Trading Day until the

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         Trading Price per $1,000 Principal Amount of Notes is greater than or
         equal to 98% of the product of the Sale Price of a share of Common
         Stock and the Conversion Rate as of such Trading Day.

         Conversion after the Occurrence of Specified Corporate Transactions

                  If:

                  (i)      (A) the Company distributes to all holders of its
         Common Stock rights or warrants entitling them (for a period expiring
         within 45 days after the record date for the determination of the
         stockholders entitled to receive such distribution) to subscribe for or
         purchase shares of Common Stock at a price per share less than the
         average of the Sale Prices of a share of Common Stock over the ten
         Trading Day period immediately preceding, but not including, the date
         such distribution is first publicly announced by the Company, or (B)
         the Company distributes to all holders of its Common Stock, cash or
         other assets, debt securities or rights to purchase its securities,
         where the Fair Market Value of such distribution per share of Common
         Stock exceeds 10% of the Sale Price on the Trading Day immediately
         preceding the date such distribution is first publicly announced by the
         Company, then, in either case, the Notes may be surrendered for
         conversion at any time on and after the date that the Company gives
         notice of such distribution to the Holders, which shall be not less
         than 20 days prior to the Ex-Dividend Time for such distribution, until
         the earlier of the close of business on the Business Day immediately
         preceding, but not including, the Ex-Dividend Time or the date the
         Company publicly announces that such distribution will not take place
         (but only to the extent such period occurs during the period specified
         in paragraph 8 of the Notes); provided that no adjustment to the
         Conversion Rate or the ability of the Holder of a Note to convert will
         be made if the Holder will otherwise participate in such distribution
         without conversion; or

                  (ii)     the Company consolidates with or merges with or into
         another Person or is a party to a binding share exchange or conveys,
         transfers, sells, leases or otherwise disposes of all or substantially
         all of the assets of the Company and its Subsidiaries, taken as a
         whole, then the Notes may be surrendered for conversion, if during the
         period specified in paragraph 8 of the Notes, at any time from and
         after the date 15 days prior to the anticipated effective date of the
         transaction and ending on and including the date 15 days after the
         consummation of the transaction. The Board of Directors shall determine
         the anticipated effective date of the transaction, and such

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<PAGE>

         determination shall be conclusive and binding on the Holders and shall
         be publicly announced by the Company and posted on its web site or
         notified to the Holders by the Company or, at the Company's request,
         the Trustee in the name and at the expense of the Company, in either
         case, not later than two Business Days prior to such 15th day. For the
         avoidance of doubt, if such transaction constitutes a Change in
         Control, the Holders may exercise their rights under Section 1110.

                  SECTION 1502. Conversion Procedure.

                  To convert a Note, a Holder must satisfy the requirements in
         paragraph 8 of the Notes. The date on which the Holder satisfies all
         those requirements is the conversion date (the "Conversion Date").

                  In the case of any conversion other than a Principal Value
         Conversion (which is covered by Section 1501):

                  (i)      Each Holder's rights to convert Notes into Common
         Stock are subject to the Company's right to elect instead to pay each
         such Holder the amount of cash determined pursuant to item (iii) below
         (or a combination of cash and shares of Common Stock) in lieu of
         delivering such Common Stock; provided, however, that if an Event of
         Default (other than a Default in a cash payment upon conversion of the
         Notes) shall have occurred and be continuing, the Company shall deliver
         Common Stock in accordance with this Article Fifteen, whether or not
         the Company has delivered a notice pursuant to item (ii) below to the
         effect that the Notes would be paid in cash or a combination of cash
         and Common Stock.

                  (ii)     Within two Business Days following the Conversion
         Date, the Company shall deliver to the Holder, through the Conversion
         Agent, written notice of whether such Notes shall be converted into
         Common Stock or paid in cash or a combination of cash and Common Stock
         (unless the Company shall have already done so pursuant to a notice of
         redemption pursuant to paragraph 7 of the Notes in respect of a
         Conversion Date occurring before the Redemption Date set forth in such
         notice). The Company shall deliver to the Holder through the Conversion
         Agent, no later than the third Business Day following the date on which
         the Applicable Stock Price is determined, the whole shares of Common
         Stock issuable upon the conversion, cash in lieu of such Common Stock
         and/or cash in lieu of any fractional shares pursuant to Section 1503,
         in each case, as applicable according to the foregoing notice and this
         Section 1502. As soon as practicable on or after such third Business
         Day, the Company shall deliver to each Holder entitled to receive whole

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<PAGE>

         shares of Common Stock upon conversion, through the Paying Agent, a
         certificate for such whole shares of Common Stock.

                  (iii)    If the Company shall have notified the Holder that
         all or a portion of such Note shall be converted solely into cash, the
         Company shall deliver to the Holder surrendering such Note the amount
         of cash equal to (A) the Applicable Stock Price multiplied by (B) the
         Conversion Rate in effect with respect to such Conversion Date
         multiplied by (C) the multiple of $1,000 that equals the Principal
         Amount of such Note (or a portion of a Note). Except as required by
         item (i) above, the Company may not change its election with respect to
         the consideration to be delivered upon conversion of a Note once the
         Company has notified the Holder in accordance with item (ii) above.

         Anything herein to the contrary notwithstanding, in the case of Global
         Notes, conversion notices may be delivered and such Notes may be
         surrendered for conversion in accordance with the applicable procedures
         of the Depositary as in effect from time to time.

                  The Person in whose name a certificate is registered
         representing Common Stock issued upon conversion of a Note shall be
         treated as a shareholder of record as of the Conversion Date; provided,
         however, that no surrender of a Note on any date when the stock
         transfer books of the Company shall be closed shall be effective to
         constitute the Person or Persons entitled to receive the shares of
         Common Stock upon such conversion as the record holder or holders of
         such shares of Common Stock on such date, but such surrender (assuming
         all other requirements in paragraph 8 of the Notes have been satisfied)
         shall be effective to constitute the Person or Persons entitled to
         receive such shares of Common Stock as the record holder or holders
         thereof for all purposes at the close of business on the next
         succeeding day on which such stock transfer books are open; provided
         further, that such conversion shall be at the Conversion Rate in effect
         on the date that such Note shall have been surrendered for conversion
         (assuming all other requirements in paragraph 8 of the Notes have been
         satisfied), as if the stock transfer books of the Company had not been
         closed. Upon conversion of a Note, such Person shall no longer be a
         Holder of such Note.

                  If the Holder converts more than one Note at the same time,
         the number of shares of Common Stock issuable upon the conversion shall
         be computed based on the total Principal Amount of the Notes converted.

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                  Upon surrender of a Note that is converted in part, the
         Company shall execute, and the Trustee shall authenticate and deliver
         to the Holder, a new Note in an authorized denomination equal in
         Principal Amount to the unconverted portion of the Note surrendered.

                  If the last day on which a Note may be converted is a Legal
         Holiday in a place where the Conversion Agent is located, the Note may
         be surrendered to such Conversion Agent on the next succeeding day that
         is not a Legal Holiday.

                  SECTION 1503. Fractional Shares.

                  The Company will not issue a fractional share of Common Stock
         upon conversion of a Note. Instead, the Company will pay cash for the
         current market value of the fractional share. The current market value
         of a fractional share shall be determined to the nearest 1/1,000th of a
         share by multiplying the Sale Price, on the last Trading Day prior to
         the Conversion Date, of a full share by the fractional amount and
         rounding the product to the nearest whole cent.

                  SECTION 1504. Taxes on Conversion

                  If a Holder converts a Note, the Company shall pay any
         documentary, stamp or similar issue or transfer tax due on the issue of
         shares of Common Stock upon such conversion. The Holder, however, shall
         pay any such tax that is due because the Holder requests the shares to
         be issued in a name other than the Holder's name. The Conversion Agent
         may, and, if so instructed by the Company, shall, refuse to deliver the
         certificates representing the Common Stock being issued in a name other
         than the Holder's name until the Conversion Agent receives a sum
         sufficient to pay any tax which will be due because the shares are to
         be issued in a name other than the Holder's name. Nothing herein shall
         preclude any tax withholding required by law or regulations.

                  SECTION 1505. Company to Provide Stock.

                  The Company shall, prior to issuance of any Notes hereunder,
         and from time to time as may be necessary, reserve out of its
         authorized but unissued Common Stock a sufficient number of shares of
         Common Stock to permit the conversion of the Notes into shares of
         Common Stock.

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<PAGE>

                  All shares of Common Stock delivered upon conversion of the
         Notes shall be newly issued shares or treasury shares, shall be duly
         and validly issued and fully paid and nonassessable and shall be free
         from preemptive rights and free of any lien or adverse claim.

                  The Company will endeavor promptly to comply with all Federal
         and state securities laws regulating the offer and delivery of shares
         of Common Stock upon conversion of Notes, if any, and will list or
         cause to have quoted such shares of Common Stock on each national
         securities exchange or in the over-the-counter market or such other
         market on which the Common Stock is then listed or quoted.

                  SECTION 1506. Adjustment for Change in Capital Stock.

                  If, after the Issue Date, the Company:

                  (1)      pays a dividend or makes a distribution on its Common
         Stock in shares of its Common Stock;

                  (2)      subdivides its outstanding shares of Common Stock
         into a greater number of shares;

                  (3)      combines its outstanding shares of Common Stock into
         a smaller number of shares;

                  (4)      pays a dividend or makes a distribution on its Common
         Stock in shares of its Capital Stock (other than Common Stock or
         rights, warrants or options for its Capital Stock); or

                  (5)      issues by reclassification of its Common Stock any
         shares of its Capital Stock (other than rights, warrants or options for
         its Capital Stock),

         then the conversion privilege and the Conversion Rate in effect
         immediately prior to such action shall be adjusted so that the Holder
         of a Note thereafter converted may receive the number of shares or
         other units of Capital Stock of the Company that such Holder would have
         owned immediately following such action if such Holder had converted
         the Note immediately prior to such action.

                  The adjustment shall become effective immediately after the
         record date in the case of a dividend or distribution and immediately
         after the effective date in the case of a subdivision, combination or
         reclassification.

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<PAGE>

                  If after an adjustment a Holder of a Note upon conversion of
         such Note may receive shares or other units of two or more classes or
         series of Capital Stock of the Company, the Conversion Rate shall
         thereafter be subject to adjustment upon the occurrence of an action
         taken with respect to any such class or series of Capital Stock as is
         contemplated by this Article Fifteen with respect to the Common Stock,
         on terms comparable to those applicable to Common Stock in this Article
         Fifteen.

                  SECTION 1507. Adjustment for Rights Issue.

                  If, after the Issue Date, the Company distributes any rights,
         warrants or options to all holders of its Common Stock entitling them,
         for a period expiring within 60 days after the record date for such
         distribution, to purchase shares of Common Stock or securities
         convertible into Common Stock at a price per share less than the Sale
         Price as of the Time of Determination, the Conversion Rate shall be
         adjusted in accordance with the formula:

                  R1 = R x (O+N)

                  (O+(N x P)/M)

                       where:

                  R1 = the adjusted Conversion Rate.

                  R  = the current Conversion Rate.

                       O = the number of shares of Common Stock outstanding on
                  the record date for the distribution to which this Section
                  1507 is being applied.

                       N = the number of additional shares of Common Stock
                  offered pursuant to the distribution.

                       P = the offering price per share of such additional
                  shares.

                       M = the Average Sale Price, minus, for any (i)
                  distribution to which Section 1506(4) applies or (ii)
                  distribution to which Section 1508 applies, for which, in each
                  case, (x) the record date shall occur on or before the record
                  date for the distribution to which this Section 1507 applies
                  and (y) the Ex-Dividend Time shall occur on or after the date
                  of the Time of Determination for the distribution to which
                  this Section 1507 applies, the Fair Market Value (on the

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                  record date for the distribution to which this Section 1507
                  applies) of the

                  (1)      Capital Stock of the Company distributed in respect
         of each share of Common Stock in such Section 1506(4) distribution, and

                  (2)      assets of the Company or debt securities or any
         rights, warrants or options to purchase securities of the Company
         distributed in respect of each share of Common Stock in such Section
         1508 distribution.

         The adjustment shall become effective immediately after the record date
         for the determination of shareholders entitled to receive the rights,
         warrants or options to which this Section 1507 applies.

                  No adjustment shall be made under this Section 1507 if the
         application of the formula stated above in this Section 1507 would
         result in a value of R1 that is equal to or less than the value of R.

                  SECTION 1508. Adjustment for Other Distributions.

                  If, after the Issue Date, the Company distributes to all
         holders of its Common Stock any of its assets or debt securities or any
         rights, warrants or options to purchase securities of the Company
         (including securities or cash, but excluding (x) distributions of
         Capital Stock referred to in Section 1506 and distributions of rights,
         warrants or options referred to in Section 1507 and (y) cash dividends
         or other cash distributions that are paid out of consolidated current
         net income or earnings retained in the business as shown on the books
         of the Company), the Conversion Rate shall be adjusted, subject to the
         provisions of the last paragraph of this Section 1508, in accordance
         with the formula:

                  R1 = R x M

                  M-F

                       where:

                  R1 = the adjusted Conversion Rate.

                  R  = the current Conversion Rate.

         M = the Average Sale Price, minus, for any distribution to which
         Section 1506(4) applies for which (i) the record date shall occur on or
         before the record date for the distribution to which this Section

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         1508 applies and (ii) the Ex-Dividend Time shall occur on or after the
         date of the Time of Determination for the distribution to which this
         Section 1508 applies, the Fair Market Value (on the record date for the
         distribution to which this Section 1508 applies) of any Capital Stock
         of the Company distributed in respect of each share of Common Stock in
         such Section 1506(4) distribution.

         F = the Fair Market Value (on the record date for the distribution
         to which this Section 1508 applies) of the assets, securities, rights,
         warrants or options to be distributed in respect of each share of
         Common Stock in the distribution to which this Section 1508 is being
         applied (including, in the case of cash dividends or other cash
         distributions giving rise to an adjustment, all such cash distributed
         concurrently).

         The adjustment shall become effective immediately after the record date
         for the determination of shareholders entitled to receive the
         distribution to which this Section 1508 applies.

         For purposes of this Section 1508, the term "Extraordinary Cash
         Dividend" shall mean any cash dividend with respect to the Common Stock
         the amount of which, together with (i) the amounts of all cash
         dividends on the Common Stock with Ex-Dividend Times occurring in the
         twelve-month period ending on the date prior to the Ex-Dividend Time
         with respect to the cash dividend to which this provision is being
         applied and (ii) the amounts of all repurchases of the type described
         in Section 1509 occurring in the twelve-month period ending on the date
         prior to the Ex-Dividend Time with respect to the cash dividend to
         which this provision is being applied for which no adjustment pursuant
         to this Article Fifteen has been made, equals or exceeds 5.0% of the
         Company's Market Capitalization on the date of the cash dividend to
         which this provision is being applied, such cash dividend together with
         each other cash dividend with an Ex-Dividend Time occurring in such
         twelve-month period shall be deemed to be an Extraordinary Cash
         Dividend and for purposes of applying the formula set forth above in
         this Section 1508, the value of "F" shall be equal to (w) the aggregate
         amount of such cash dividend together with the amounts of the other
         cash dividends with Ex-Dividend Times occurring in such period minus
         (x) the aggregate amount of such other cash dividends with Ex-Dividend
         Times occurring in such period for which a prior adjustment in the
         Conversion Rate was previously made under this Section 1508.

                  In making the determinations required by the immediately
         preceding paragraph, the amount of cash dividends paid on a per

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         share basis and the average of the Sale Prices, in each case during the
         period specified in the immediately preceding paragraph, shall be
         appropriately adjusted to reflect the occurrence during such period of
         any event described in Section 1506.

                  In the event that, with respect to any distribution to which
         this Section 1508 would otherwise apply, the difference "M-F" as
         defined in the above formula is less than $1.00 or "F" is equal to or
         greater than "M," then the adjustment provided by this Section 1508
         shall not be made and in lieu thereof the provisions of Section 1515
         shall apply to such distribution.

                  SECTION 1509. Adjustment for Repurchases.

                           In case the Company or any of its Subsidiaries shall
         repurchase (including by way of tender offer) shares of Common Stock,
         and the Fair Market Value of the sum of (i) the aggregate consideration
         paid for such Common Stock, (ii) the aggregate cash dividends and
         distributions of the type described in clause (y) of Section 1508 paid
         within the twelve months preceding the date of purchase of such shares
         of Common Stock in respect of which no adjustment pursuant to any
         section of this Article Fifteen previously has been made, and (iii) the
         aggregate of any amounts previously paid for the repurchase of Common
         Stock of a type described in this Section 1509 within the twelve months
         preceding the date of purchase of such shares of Common Stock in
         respect of which no adjustment pursuant to any section of this Article
         Fifteen previously has been made, exceeds 5.0% of Market Capitalization
         on the date of, and after giving effect to, such repurchase, then the
         Conversion Rate shall be adjusted in accordance with the formula:

                  R1 = R x M

                  M  -   P           O-S

                       where:

                  R1 = the adjusted Conversion Rate.

                  R  = the current Conversion Rate.

                  M  = the Average Sale Price.

         P = the excess, if any, of the aggregate repurchase price paid for
         all shares of Common Stock that are the subject of such repurchase over
         the aggregate value of such shares calculated at the Average Sale
         Price.

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                  O = the number of shares of Common Stock outstanding prior to
         such repurchase.

                  S = the number of shares of Common Stock that are the subject
         of such repurchase

                  The adjustment shall become effective immediately after the
         trade date for the repurchase.

                  SECTION 1510. When Adjustment May Be Deferred.

                  No adjustment in the Conversion Rate need be made unless the
         adjustment would require an increase or decrease of at least 1% (e.g.,
         if the Conversion Rate is 4, an increase or decrease of .04 (1% of 4))
         in the Conversion Rate. Any adjustments that are not made shall be
         carried forward and taken into account in any subsequent adjustment.

                  All calculations under this Article Fifteen shall be made to
         the nearest cent or to the nearest 1/1,000th of a share, as the case
         may be, with one-half of a cent and 5/10,000ths of a share being
         rounded upwards.

                  SECTION 1511. When No Adjustment Required.

                  No adjustment need be made for a transaction referred to in
         Section 1506, 1507, 1508, 1509 or 1515 if Holders are to participate in
         the transaction on a basis and with notice that the Board of Directors
         determines to be fair and appropriate in light of the basis and notice
         on which holders of Common Stock participate in the transaction.

                  No adjustment need be made for rights to purchase Common Stock
         pursuant to a Company plan for reinvestment of dividends or interest.

                  No adjustment need be made for a change in the par value or no
         par value of the Common Stock.

                  To the extent the Notes become convertible into cash pursuant
         to the terms of Section 1508 or 1515, no adjustment need be made
         thereafter as to the cash. Interest will not accrue on the cash.

                  Notwithstanding any provision to the contrary in this
         Indenture, no adjustment shall be made in the Conversion Rate to the
         extent, but only to the extent, such adjustment results in the

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         following quotient being less than the par value of the Common Stock:
         (i) the Principal Amount divided by (ii) the Conversion Rate as so
         adjusted.

                  SECTION 1512. Notice of Adjustment.

                  Whenever the Conversion Rate is adjusted, the Company shall
         file with the Trustee and the Conversion Agent a notice of such
         adjustment and a certificate from the Company's independent public
         accountants briefly stating the facts requiring the adjustment and the
         manner of computing it. The Conversion Agent will promptly mail such
         notice to Holders at the Company's expense. The certificate shall be
         conclusive evidence that the adjustment is correct. Neither the Trustee
         nor any Conversion Agent shall be under any duty or responsibility with
         respect to any such certificate except to exhibit the same to any
         Holder desiring inspection thereof.

                  SECTION 1513. Voluntary Increase.

                  The Company from time to time may increase the Conversion Rate
         by any amount and for any period of time; provided that such period is
         not less than 20 Business Days. Whenever the Conversion Rate is
         increased, the Company shall mail to Holders and file with the Trustee
         and the Conversion Agent a notice of the increase. The Company shall
         mail the notice at least 15 days before the date the increased
         Conversion Rate takes effect. The notice shall state the increased
         Conversion Rate and the period it will be in effect.

                  A voluntary increase of the Conversion Rate does not change or
         adjust the Conversion Rate otherwise in effect for purposes of Section
         1506, 1507, 1508 or 1509.

                  SECTION 1514. Notice of Certain Transactions.

                  If:

                           (1)      the Company takes any action that would
         require an adjustment in the Conversion Rate pursuant to Section 1506,
         1507, 1508 or 1509 (unless no adjustment is to occur pursuant to
         Section 1511); or

                           (2)      the Company takes any action that would
         require a supplemental indenture pursuant to Section 1515; or

                           (3)      there is a liquidation or dissolution of the
         Company,

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<PAGE>

                  then the Company shall mail to Holders and file with the
         Trustee and the Conversion Agent a notice stating the proposed record
         date for a dividend or distribution of the proposed effective date of a
         subdivision, combination, reclassification, consolidation, merger,
         binding share exchange, transfer, liquidation or dissolution. The
         Company shall file and mail the notice at least 15 days before such
         date. Failure to file or mail the notice or any defect in it shall not
         affect the validity of the transaction.

                  SECTION 1515. Reorganization of Company; Special
         Distributions.

                  If the Company is a party to a transaction subject to Section
         801 (other than a sale of all or substantially all of the assets of the
         Company in a transaction in which the holders of Common Stock
         immediately prior to such transaction do not receive securities, cash
         or other assets of the Company or any other Person) or a merger or
         binding share exchange that reclassifies or changes its outstanding
         Common Stock (including by resulting in the Company's becoming a
         subsidiary of a Parent Holding Company), the Person obligated to
         deliver securities, cash or other assets upon conversion of Notes shall
         enter into a supplemental indenture. If the issuer of securities
         deliverable upon conversion of Notes is an Affiliate of the successor
         Company, that issuer shall join in the supplemental indenture.

                  The supplemental indenture shall provide that the Holder of a
         Note may convert it into the kind and amount of securities, cash or
         other assets which such Holder would have received immediately after
         the consolidation, merger, binding share exchange or transfer if such
         Holder had converted the Note immediately before the effective date of
         the transaction, assuming (to the extent applicable) that such Holder
         (i) was not a constituent Person or an Affiliate of a constituent
         Person to such transaction; (ii) made no election with respect thereto;
         and (iii) was treated alike with the plurality of non-electing Holders.
         The supplemental indenture shall provide for adjustments which shall be
         as nearly equivalent as may be practical to the adjustments provided
         for in this Article Fifteen. The successor Company shall mail to
         Holders a notice briefly describing the supplemental indenture.

                  If this Section 1515 applies, none of Sections 1506, 1507,
         1508 or 1509 shall apply.

                  If the Company makes a distribution to all holders of its
         Common Stock of any of its assets, or debt securities or any rights,
         warrants or options to purchase securities of the Company that, but

                                       72
<PAGE>

         for the provisions of the last paragraph of Section 1508, would
         otherwise result in an adjustment in the Conversion Rate pursuant to
         the provisions of Section 1508, then, from and after the record date
         for determining the holders of Common Stock entitled to receive the
         distribution, a Holder of a Note that converts such Note in accordance
         with the provisions of this Indenture shall upon such conversion be
         entitled to receive, in addition to the shares of Common Stock into
         which the Note is convertible, the kind and amount of securities, cash
         or other assets comprising the distribution that such Holder would have
         received if such Holder had converted the Note immediately prior to the
         record date for determining the holders of Common Stock entitled to
         receive the distribution.

                  SECTION 1516. Rights Issued Under the Outstanding Rights
         Agreement; Future Stockholder Rights Plans.

                  The Company has entered into a Rights Agreement dated as of
         September 13, 2001 (the "Rights Agreement") with American Stock
         Transfer & Trust Company. Under the Rights Agreement, preferred share
         purchase rights (the "Rights") have been, and may in the future be,
         issued in respect of shares of Common Stock. The Rights Agreement
         provides that, upon conversion, Holders of Notes will receive, in
         addition to the shares of Common Stock issuable upon such conversion,
         the Rights attached to such shares or, if the Rights have separated
         from the Common Stock, the Rights that would have attached to such
         shares had the Rights not become separated. There shall be no
         adjustment pursuant to this Article Fifteen in connection with the
         distribution, separation, exercise or other action relating to the
         Rights; provided, however, that, if the Rights Agreement is amended, or
         the Company adopts another stockholder rights agreement of the nature
         of the Rights Agreement, such that, upon separation of the Rights (or
         rights under the future stockholder rights agreement) from the Common
         Stock in accordance with the Rights Agreement (or future stockholder
         rights agreement), Holders of Notes would not thereafter be entitled to
         receive Rights (or rights under the future stockholder rights
         agreement) in respect of the Common Stock issuable upon conversion, the
         Conversion Rate will be adjusted as provided in Section 1507 on the
         separation or rights distribution date, subject to readjustment in the
         event of expiration, termination or redemption of the Rights or rights
         under the future stockholder rights agreement (but, unless the
         condition to this sentence does not hold, no adjustment pursuant to
         this Article Fifteen in connection with the distribution, separation,
         exercise or other action relating to the Rights or rights under the
         future stockholder rights agreement shall be made).

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                  SECTION 1517. Company Determination Final.

                  Any determination that the Company or the Board of Directors
         must make pursuant to this Article Fifteen is conclusive in the absence
         of manifest error.

                  SECTION 1518. Trustee's Adjustment Disclaimer.

                  The Trustee has no duty to determine when an adjustment under
         this Article Fifteen should be made, how it should be made or what it
         should be. The Trustee has no duty to determine whether a supplemental
         indenture under Section 1515 need be entered into or whether any
         provisions of any supplemental indenture are correct. The Trustee shall
         not be accountable for and makes no representation as to the validity
         or value of any securities or assets issued upon conversion of Notes.
         The Trustee shall not be responsible for the Company's failure to
         comply with this Article Fifteen. Each Conversion Agent (other than the
         Company or an Affiliate of the Company) shall have the same protection
         under this Section 1518 as the Trustee.

                  SECTION 1519. Simultaneous Adjustments.

                  If this Article Fifteen requires adjustments to the Conversion
         Rate under more than one of Sections 1506(4), 1507 or 1508, and the
         record dates for the distributions giving rise to such adjustments
         shall occur on the same date, then such adjustments shall be made by
         applying, first, the provisions of Section 1506, second, the provisions
         of Section 1508 and, third, the provisions of Section 1507.

                  SECTION 1520.  Successive Adjustments.

                  After an adjustment to the Conversion Rate under this Article
         Fifteen, any subsequent event requiring an adjustment under this
         Article Fifteen shall cause an adjustment to the Conversion Rate as so
         adjusted.

         Section 1.12. Effect of Article One. The supplements to the Original
Indenture set forth in Article One of this Sixth Supplemental Indenture affect
only the provisions of the Original Indenture as such provisions relate to the
Notes, the series of Securities comprised of the Notes and the rights, remedies
and obligations of the Company, the Subsidiary Guarantors, the Holders of Notes,
the Trustee and other Persons set forth in the Original Indenture as such
rights, remedies and obligations relate to the Notes.

                                       74
<PAGE>

                                    ARTICLE 2

                                    THE NOTES

         Section 2.01. Form and Terms. The Notes shall be issued in the form of
one or more permanent global Notes substantially in the form set forth on
Exhibit A hereto, duly executed by the Company and authenticated by the Trustee
as provided in the Indenture. The terms of the Notes set forth on Exhibit A
hereto are incorporated by reference herein as if set forth herein in their
entirety.

         Section 2.02. Designation and Amount.

         (a) The Notes shall be entitled the "3 1/4% Senior Convertible Notes
Due 2033" of the Company.

         (b) The Trustee shall authenticate and deliver Notes for original issue
on the Issue Date in an aggregate Principal Amount of $250,000,000 upon Company
Order for the authentication and delivery of Notes, without any further action
by the Company; provided, however, that in the event the Company sells any Notes
pursuant to the option granted pursuant to the Purchase Agreement, then the
Trustee shall authenticate and deliver additional Notes for original issue on or
after the Issue Date in an aggregate Principal Amount of up to $50,000,000
aggregate Principal Amount of Notes, upon Company Order for the authentication
and delivery of Notes, without any further action by the Company. The aggregate
Principal Amount of Notes that may be authenticated and delivered under the
Indenture for original issue may not exceed the amount set forth in the
foregoing sentence, subject to the proviso thereto.

         (c) The Company may not issue new Notes to replace Notes that it has
paid or delivered to the Trustee for cancellation or that any Holder has
converted pursuant to Article Fifteen.

         Section 2.03. Registered Securities. The Notes shall be Registered
Securities.

                                    ARTICLE 3

                         REPRESENTATIONS OF THE COMPANY

         Section 3.01. Authority of the Company. The Company is duly authorized
to execute and deliver this Sixth Supplemental Indenture, and all corporate
action on its part required for the execution and delivery of this Sixth
Supplemental Indenture has been duly and effectively taken.

         Section 3.02. Truth of Recitals and Statements. The Company warrants
that the recitals of fact and statements contained in this Sixth Supplemental

                                       75
<PAGE>

Indenture are true and correct, and that the recitals of fact and statements
contained in all certificates and other documents furnished thereunder will be
true and correct.

                                    ARTICLE 4

                             CONCERNING THE TRUSTEE

         Section 4.01. Acceptance of Trusts. The Trustee accepts the trusts
hereunder and agrees to perform the same, but only upon the terms and conditions
set forth in the Original Indenture and in this Sixth Supplemental Indenture, to
all of which the Company and the respective Holders of the Notes at any time
hereafter Outstanding agree by their acceptance thereof.

         Section 4.02. No Responsibility of Trustee for Recitals, Etc. The
recitals and statements contained in this Sixth Supplemental Indenture shall be
taken as the recitals and statements of the Company, and the Trustee assumes no
responsibility for the correctness of the same. The Trustee makes no
representations as to the validity or sufficiency of this Sixth Supplemental
Indenture, except that the Trustee is duly authorized by all necessary corporate
actions to execute and deliver this Sixth Supplemental Indenture.

                                    ARTICLE 5

                            MISCELLANEOUS PROVISIONS

         Section 5.01. Relation to the Original Indenture. The provisions of
this Sixth Supplemental Indenture shall become effective immediately upon the
execution and delivery hereof. This Sixth Supplemental Indenture and all the
terms and provisions herein contained shall form a part of the Original
Indenture as fully and with the same effect as if all such terms and provisions
had been set forth in the Original Indenture; provided, however, such terms and
provisions shall be so included in this Sixth Supplemental Indenture solely for
the benefit of the Company, the Subsidiary Guarantors, the Trustee and the
Holders of the Notes. The Original Indenture is hereby ratified and confirmed
and shall remain and continue in full force and effect in accordance with the
terms and provisions thereof, as supplemented by this Sixth Supplemental
Indenture and as otherwise supplemented with applicability with respect to the
Notes, and the Original Indenture (as otherwise supplemented with applicability
with respect to the Notes) and this Sixth Supplemental Indenture shall be read,
taken and construed together as one instrument.

         Section 5.02. Meaning of Terms. Any term used in this Sixth
Supplemental Indenture which is defined in the Original Indenture shall have the
meaning specified in the Original Indenture (as otherwise supplemented with
applicability with respect to the Notes), unless the context shall otherwise
require.

                                       76
<PAGE>

         Section 5.03. Counterparts of Supplemental Indenture. This Sixth
Supplemental Indenture may be executed in several counterparts, each of which
shall be deemed an original, but all of which together shall constitute one
instruments.

         Section 5.04. Governing Law. This Sixth Supplemental Indenture and the
Notes shall be governed by and construed in accordance with the laws of the
State of New York.

                                       77
<PAGE>

         IN WITNESS WHEREOF, Pride International, Inc. has caused this Sixth
Supplemental Indenture to be executed in its corporate name by a duly authorized
officer and JPMorgan Chase Bank has caused this Sixth Supplemental Indenture to
be executed by a duly authorized officer, all as of the date first above
written.

                         PRIDE INTERNATIONAL, INC.

                         By:     /s/ Earl W. McNiel
                            --------------------------------------------
                              Earl W. McNiel
                              Vice President and Chief Financial Officer

                         JPMORGAN CHASE BANK, as Trustee

                         BY:     /s/ L. O'Brien
                            --------------------------------------------
                              Name:  L. O'Brien
                              Title: Vice President

<PAGE>

                                     ANNEX 1

                           PROJECTED PAYMENT SCHEDULE

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
             Number of                             Trigger Met?                   Non-
            Semi-Annual                              (Yes=1,      Contingent   Contingent
Date          Periods    Stock Price  Bond Price      No=0)        Payment      Payment
-----------------------------------------------------------------------------------------
<S>         <C>          <C>          <C>          <C>            <C>          <C>
3/28/2003                   14.28      1,000.00
11/15/2003     1.26         15.04      1,000.00                                  (20.49)
5/15/2004      1.00         15.68      1,000.00                                  (16.25)
11/15/2004     1.00         16.34      1,000.00                                  (16.25)
5/15/2005      1.00         17.02      1,000.00                                  (16.25)
11/15/2005     1.00         17.74      1,000.00                                  (16.25)
5/15/2006      1.00         18.49      1,000.00                                  (16.25)
11/15/2006     1.00         19.27      1,000.00                                  (16.25)
5/15/2007      1.00         20.08      1,000.00                                  (16.25)
11/15/2007     1.00         20.92      1,000.00                                  (16.25)
5/15/2008      1.00         21.81      1,000.00        0                         (16.25)
11/15/2008     1.00         22.72      1,000.00        0                -        (16.25)
5/15/2009      1.00         23.68      1,000.00        0                -        (16.25)
11/15/2009     1.00         24.68      1,000.00        0                -        (16.25)
5/15/2010      1.00         25.72      1,000.55        0                -        (16.25)
11/15/2010     1.00         26.80      1,042.69        0                -        (16.25)
5/15/2011      1.00         27.93      1,086.60        0                -        (16.25)
11/15/2011     1.00         29.11      1,132.37        0                -        (16.25)
5/15/2012      1.00         30.33      1,180.06        0                -        (16.25)
11/15/2012     1.00         31.61      1,229.76        1                -        (16.25)
5/15/2013      1.00         32.94      1,281.55        1            (3.07)       (16.25)
11/15/2013     1.00         34.33      1,335.53        1            (3.20)       (16.25)
5/15/2014      1.00         35.77      1,391.78        1            (3.34)       (16.25)
11/15/2014     1.00         37.28      1,450.39        1            (3.48)       (16.25)
5/15/2015      1.00         38.85      1,511.48        1            (3.63)       (16.25)
11/15/2015     1.00         40.49      1,575.14        1            (3.78)       (16.25)
5/15/2016      1.00         42.19      1,641.48        1            (3.94)       (16.25)
11/15/2016     1.00         43.97      1,710.62        1            (4.10)       (16.25)
5/15/2017      1.00         45.82      1,782.66        1            (4.28)       (16.25)
11/15/2017     1.00         47.75      1,857.74        1            (4.46)       (16.25)
5/15/2018      1.00         49.76      1,935.98        1            (4.64)       (16.25)
11/15/2018     1.00         51.86      2,017.52        1            (4.84)       (16.25)
5/15/2019      1.00         54.04      2,102.49        1            (5.04)       (16.25)
11/15/2019     1.00         56.32      2,191.05        1            (5.26)       (16.25)
5/15/2020      1.00         58.69      2,283.33        1            (5.48)       (16.25)
11/15/2020     1.00         61.16      2,379.49        1            (5.71)       (16.25)
5/15/2021      1.00         63.74      2,479.71        1            (5.95)       (16.25)
11/15/2021     1.00         66.42      2,584.15        1            (6.20)       (16.25)
5/15/2022      1.00         69.22      2,692.99        1            (6.46)       (16.25)
11/15/2022     1.00         72.14      2,806.41        1            (6.73)       (16.25)
5/15/2023      1.00         75.17      2,924.60        1            (7.02)       (16.25)
11/15/2023     1.00         78.34      3,047.78        1            (7.31)       (16.25)
5/15/2024      1.00         81.64      3,176.14        1            (7.62)       (16.25)
11/15/2024     1.00         85.08      3,309.91        1            (7.94)       (16.25)
5/15/2025      1.00         88.66      3,449.32        1            (8.27)       (16.25)
11/15/2025     1.00         92.40      3,594.59        1            (8.62)       (16.25)
5/15/2026      1.00         96.29      3,745.99        1            (8.99)       (16.25)
11/15/2026     1.00        100.34      3,903.76        1            (9.36)       (16.25)
5/15/2027      1.00        104.57      4,068.17        1            (9.76)       (16.25)
11/15/2027     1.00        108.97      4,239.51        1           (10.17)       (16.25)
5/15/2028      1.00        113.56      4,418.07        1           (10.60)       (16.25)
11/15/2028     1.00        118.34      4,604.14        1           (11.05)       (16.25)
5/15/2029      1.00        123.33      4,798.06        1           (11.51)       (16.25)
11/15/2029     1.00        128.52      5,000.14        1           (12.00)       (16.25)
5/15/2030      1.00        133.94      5,210.73        1           (12.50)       (16.25)
11/15/2030     1.00        139.58      5,430.19        1           (13.03)       (16.25)
5/15/2031      1.00        145.46      5,658.89        1           (13.58)       (16.25)
11/15/2031     1.00        151.58      5,897.23        1           (14.15)       (16.25)
5/15/2032      1.00        157.97      6,145.60        1           (14.74)       (16.25)
11/15/2032     1.00        164.62      6,404.44        1           (15.36)       (16.25)
5/15/2033      1.00        171.55      6,674.17        1           (16.01)       (16.25)
-----------------------------------------------------------------------------------------

<CAPTION>
---------------------------------------------------------------
             Payment
               Upon
            Conversion                   Discount       Present
            Immediately                Factor using    Value to
              Prior to       Total      Comparable      Total
Date         Maturity      Payments       Yield        Payments
---------------------------------------------------------------
<S>         <C>           <C>          <C>             <C>
3/28/2003                  1,000.00        1.00        1,000.00
11/15/2003                   (20.49)       0.95          (19.47)
5/15/2004                    (16.25)       0.91          (14.83)
11/15/2004                   (16.25)       0.88          (14.24)
5/15/2005                    (16.25)       0.84          (13.68)
11/15/2005                   (16.25)       0.81          (13.14)
5/15/2006                    (16.25)       0.78          (12.62)
11/15/2006                   (16.25)       0.75          (12.12)
5/15/2007                    (16.25)       0.72          (11.64)
11/15/2007                   (16.25)       0.69          (11.18)
5/15/2008                    (16.25)       0.66          (10.73)
11/15/2008                   (16.25)       0.63          (10.31)
5/15/2009                    (16.25)       0.61           (9.90)
11/15/2009                   (16.25)       0.59           (9.51)
5/15/2010                    (16.25)       0.56           (9.13)
11/15/2010                   (16.25)       0.54           (8.77)
5/15/2011                    (16.25)       0.52           (8.42)
11/15/2011                   (16.25)       0.50           (8.09)
5/15/2012                    (16.25)       0.48           (7.77)
11/15/2012                   (16.25)       0.46           (7.46)
5/15/2013                    (19.32)       0.44           (8.52)
11/15/2013                   (19.45)       0.42           (8.24)
5/15/2014                    (19.59)       0.41           (7.97)
11/15/2014                   (19.73)       0.39           (7.70)
5/15/2015                    (19.88)       0.38           (7.45)
11/15/2015                   (20.03)       0.36           (7.21)
5/15/2016                    (20.19)       0.35           (6.98)
11/15/2016                   (20.35)       0.33           (6.76)
5/15/2017                    (20.53)       0.32           (6.55)
11/15/2017                   (20.71)       0.31           (6.34)
5/15/2018                    (20.89)       0.29           (6.15)
11/15/2018                   (21.09)       0.28           (5.96)
5/15/2019                    (21.29)       0.27           (5.78)
11/15/2019                   (21.51)       0.26           (5.61)
5/15/2020                    (21.73)       0.25           (5.44)
11/15/2020                   (21.96)       0.24           (5.28)
5/15/2021                    (22.20)       0.23           (5.13)
11/15/2021                   (22.45)       0.22           (4.98)
5/15/2022                    (22.71)       0.21           (4.84)
11/15/2022                   (22.98)       0.20           (4.70)
5/15/2023                    (23.27)       0.20           (4.57)
11/15/2023                   (23.56)       0.19           (4.44)
5/15/2024                    (23.87)       0.18           (4.32)
11/15/2024                   (24.19)       0.17           (4.21)
5/15/2025                    (24.52)       0.17           (4.10)
11/15/2025                   (24.87)       0.16           (3.99)
5/15/2026                    (25.24)       0.15           (3.89)
11/15/2026                   (25.61)       0.15           (3.79)
5/15/2027                    (26.01)       0.14           (3.70)
11/15/2027                   (26.42)       0.14           (3.61)
5/15/2028                    (26.85)       0.13           (3.52)
11/15/2028                   (27.30)       0.13           (3.44)
5/15/2029                    (27.76)       0.12           (3.36)
11/15/2029                   (28.25)       0.12           (3.28)
5/15/2030                    (28.75)       0.11           (3.21)
11/15/2030                   (29.28)       0.11           (3.14)
5/15/2031                    (29.83)       0.10           (3.07)
11/15/2031                   (30.40)       0.10           (3.00)
5/15/2032                    (30.99)       0.09           (2.94)
11/15/2032                   (31.61)       0.09           (2.88)
5/15/2033    (6,674.17)   (6,706.43)       0.09         (586.96)
---------------------------------------------------------------
                                         TOTAL PV          0.00
---------------------------------------------------------------
</TABLE>

                                       1-1

<PAGE>

                                    EXHIBIT A

                             [FORM OF FACE OF NOTE]

                            PRIDE INTERNATIONAL, INC.

                            3 1/4% CONVERTIBLE SENIOR
                                  NOTE DUE 2033

THIS NOTE WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR U.S. FEDERAL INCOME TAX
PURPOSES. FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL REVENUE CODE,
THE ISSUE PRICE OF EACH NOTE IS $1,000 PER $1,000 OF PRINCIPAL AMOUNT, THE ISSUE
DATE IS APRIL 28, 2003 AND THE COMPARABLE YIELD IS 8.25%, COMPOUNDED
SEMI-ANNUALLY. HOLDERS OF THIS NOTE MAY OBTAIN INFORMATION REGARDING THE AMOUNT
OF ORIGINAL ISSUE DISCOUNT, YIELD TO MATURITY AND THE PROJECTED PAYMENT SCHEDULE
FOR THIS NOTE BY SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO: PRIDE
INTERNATIONAL, INC., CHIEF FINANCIAL OFFICER, 5847 SAN FELIPE, SUITE 3300,
HOUSTON, TEXAS 77057.

[ADD LEGENDS REQUIRED BY SECTION 305 OF THE INDENTURE REFERRED TO ON THE OTHER
SIDE OF THIS NOTE]

         [UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), SHALL
ACT AS THE DEPOSITARY UNTIL A SUCCESSOR SHALL BE APPOINTED BY THE COMPANY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO
THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST THEREIN.]*

-----------------------
* On Global Notes only.

                                      A-1
<PAGE>

                                                       CUSIP No. [             ]

No.                                                      $ _____________________

         Pride International, Inc., a Delaware corporation, promises to pay to
_____________, or registered assigns, the Principal Amount of
_________________________________ Dollars[, or such greater or lesser amount as
indicated on the Schedule of Exchanges hereto,]* on May 1, 2033.

         This Note shall bear interest as specified on the other side of this
Note. This Note is convertible as specified on the other side of this Note. All
capitalized terms used herein without definition shall have the respective
meanings assigned thereto in the Indenture referred to on the other side of this
Note.

         Additional provisions of this Note are set forth on the other side of
this Note.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                      A-2
<PAGE>

Dated: ________________

                                            PRIDE INTERNATIONAL, INC.

[SEAL]                                      By:___________________________
                                               Name:
                                               Title:

ATTEST:

__________________________
Name:
Title:

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

JPMORGAN CHASE BANK,
as Trustee

By:________________________
   Authorized Officer

                                      A-3
<PAGE>

                         [FORM OF REVERSE SIDE OF NOTE]

                            3 1/4% CONVERTIBLE SENIOR
                                  NOTE DUE 2033

1. Interest

         Pride International, Inc., a Delaware corporation (the "Company"),
promises to pay interest on the Principal Amount of this Note at the rate per
annum shown above. The Company shall pay such interest semi-annually in arrears
on May 1 and November 1 of each year, commencing November 1, 2003. Interest will
be paid on each Interest Payment Date to the Holder as of the immediately
preceding Regular Record Date, even if such Interest Payment Date is a
Redemption Date, Repurchase Date or Change in Control Purchase Date, but subject
to the other provisions of this Note and the Indenture. Interest on the Notes
will accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from April 28, 2003. Contingent interest on the Notes
will accrue as provided in Section 1001 of the Indenture for any six-month
interest period from May 1 to October 31 or November 1 to April 30 commencing on
or after May 1, 2008 for which the Trading Price for each of the five Trading
Days immediately preceding the first day of such six-month interest period
equals 120% or more of $1,000 per $1,000 Principal Amount of Notes and will be
treated like any other interest accruing on the Notes. Interest will be computed
on the basis of a 360-day year of twelve 30-day months. The Company promises to
pay interest at the rate of 4 1/4% per annum on overdue principal, premium, if
any, and (to the extent that payment of such interest is enforceable under
applicable law) interest on the Notes.

2. Method of Payment

         Subject to the surrender contemplated by this sentence and the other
terms and conditions of the Indenture, the Company will make payments of the
Redemption Price, Purchase Price, Change in Control Purchase Price and Principal
Amount at Stated Maturity to the Holders that surrender Notes to a Paying Agent
to collect such payments in respect of the Notes, together with accrued and
unpaid interest to but excluding the Repurchase Date or through and including
the Repurchase Date or Change in Control Purchase Date, as the case may be;
provided that, if any Redemption Date, Repurchase Date or Change in Control
Purchase Date is an Interest Payment Date, accrued and unpaid interest to but
excluding the Repurchase Date or through and including the Repurchase Date or
Change in Control Purchase Date, as the case may be, shall be paid to the Holder
as of the immediately preceding Regular Record Date notwithstanding such
Redemption Date, Repurchase Date or Change in Control Purchase Date. The Company
will pay cash amounts in money of The United States of America that at the time
of payment is legal tender for payment of public and private debts. The Company
will make such cash payments (i) by wire transfer of immediately available funds
with respect

                                      A-4
<PAGE>

to Notes held in book-entry form or Notes held in certificated form with an
aggregate Principal Amount in excess of $2,000,000 whose Holder has requested
such method of payment and provided wire transfer instructions to the Paying
Agent or (ii) by check payable in such money mailed to a Holder's registered
address with respect to any other certificated Notes.

3. Paying Agent, Conversion Agent and Security Registrar

         Initially, JPMorgan Chase Bank, the Trustee under the Indenture, will
act as Paying Agent, Conversion Agent and Security Registrar. The Company may
appoint and change any Paying Agent, Conversion Agent or Security Registrar
without notice, other than notice to the Trustee, provided that the Company
shall maintain in the Borough of Manhattan, The City of New York, an office or
agency of the Security Registrar, Paying Agent or Conversion Agent. The Company
or any of its Subsidiaries or any of their Affiliates may act as Paying Agent,
Conversion Agent and/or Security Registrar.

4. Indenture

         This Note is one of a duly authorized series of Securities of the
Company, designated as its 3 1/4% Convertible Senior Notes Due 2033, issued
under an Indenture dated as of May 1, 1997, as amended and supplemented by a
Sixth Supplemental Indenture dated as of the Issue Date and as otherwise
supplemented with applicability with respect to the Notes (as so amended and
supplemented, the "Indenture"), between the Company and the Trustee. The terms
of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended (the
"Trust Indenture Act"), except as provided in the Indenture. Capitalized terms
used herein or on the face hereof and not defined herein have the meanings
ascribed thereto in the Indenture. The Notes are subject to all such terms, and
Holders are referred to the Indenture and the Trust Indenture Act for a
statement of those terms. Those terms are incorporated herein by reference.

         The Notes are unsecured, general obligations of the Company limited to
an aggregate Principal Amount specified in the Indenture.

5. Redemption at the Option of the Company

         No sinking fund is provided for the Notes.

         On or after May 5, 2008, the Notes are redeemable for cash as a whole
at any time, or from time to time in part, at the option of the Company, at a
Redemption Price equal to 100% of the Principal Amount of Notes to be redeemed.
Such Redemption Price shall be paid in cash.

                                      A-5
<PAGE>

6. Purchase by the Company at the Option of the Holder upon a Change in Control;
Purchase by the Company at the Option of the Holder

         Subject to the terms and conditions of the Indenture, if any Change in
Control occurs, the Company shall, at the option of the Holder, become obligated
to repurchase all Notes for which a Change in Control Purchase Notice shall have
been delivered as provided in the Indenture and not withdrawn on the date that
is 35 Business Days after the occurrence of such Change in Control for a Change
in Control Purchase Price equal to 100% of the Principal Amount. Such Change in
Control Purchase Price shall be paid in cash.

         Subject to the terms and conditions of the Indenture, the Company
shall, at the option of the Holder, become obligated to repurchase all Notes for
which a Repurchase Notice shall have been delivered as provided in the Indenture
and not withdrawn on any Repurchase Date for a Purchase Price equal to 100% of
the Principal Amount. Such Purchase Price may be paid, at the option of the
Company, in cash or by the issuance and delivery of shares of Common Stock or in
any combination thereof.

         Holders have the right to withdraw any Change in Control Purchase
Notice or Repurchase Notice, as the case may be, by delivering to the Paying
Agent a written notice of withdrawal in accordance with the provisions of the
Indenture.

         If cash (and/or securities if permitted by the Indenture) sufficient to
pay the Change in Control Purchase Price or Purchase Price, as the case may be,
of all Notes or portions thereof to be purchased as of the Change in Control
Purchase Date or the Repurchase Date, as the case may be, plus (unless such date
is an Interest Payment Date) accrued and unpaid interest through and including
such date, is deposited with the Paying Agent on the Business Day following such
date, then interest ceases to accrue on such Notes (or portions thereof) on and
after such date and the Holders thereof shall have no other rights as such
(other than the right to receive the Change in Control Purchase Price or
Purchase Price, as the case may be, according to the Indenture upon surrender of
such Note, plus accrued and unpaid interest through and including the Change in
Control Purchase Date or the Repurchase Date, as the case may be, subject always
to the right of Holders as of the immediate preceding Regular Record Date to
receive such accrued and unpaid interest if the Change in Control Purchase Date
or the Repurchase Date, as the case may be, is an Interest Payment Date). No
interest on the Notes to be purchased will be payable by the Company on any
Interest Payment Date subsequent to the Business Day following the Change in
Control Purchase Date or Repurchase Date, as the case may be, if the
requirements of the immediately preceding sentence are satisfied.

                                      A-6
<PAGE>

7. Notice of Redemption

         Notice of redemption will be given in the manner provided in the
Indenture not less than 30 days nor more than 60 days prior to the Redemption
Date. If money sufficient to pay the Redemption Price of all Notes (or portions
thereof) to be redeemed on the Redemption Date, plus (unless the Redemption Date
is an Interest Payment Date) accrued and unpaid interest to but excluding the
Redemption Date, is deposited with the Paying Agent prior to or on the
Redemption Date, then interest ceases to accrue on such Notes or portions
thereof on and after such Redemption Date, and the Holders thereof shall have no
other rights as such (other than the right to receive the Redemption Price
according to the Indenture upon surrender of such Note, plus accrued and unpaid
interest to but excluding the Redemption Date, subject always to the right of
Holders as of the immediate preceding Regular Record Date to receive such
accrued and unpaid interest if the Redemption Date is an Interest Payment Date).
No interest on redeemed Notes will be payable by the Company on any Interest
Payment Date subsequent to the Redemption Date. Notes in denominations larger
than $1,000 of Principal Amount may be redeemed in part but only in integral
multiples of $1,000 of Principal Amount.

8. Conversion

         Subject to the provisions of the Indenture and this paragraph 8 and to
the prior redemption or repurchase of any Note, a Holder of such Note may
convert it into Common Stock, but only before the close of business on May 1,
2033 and only upon the occurrence of one of the events set forth in Section 1501
of the Indenture. A Note in respect of which a Holder has delivered a Change in
Control Purchase Notice or Repurchase Notice exercising the option of such
Holder to require the Company to purchase such Note may be converted only if the
notice of exercise is withdrawn in accordance with the terms of the Indenture.

         The number of shares of Common Stock to be delivered upon conversion of
a Note into Common Stock per $1,000 of Principal Amount shall be equal to the
Conversion Rate. The initial Conversion Rate is 38.9045 shares of Common Stock
per $1,000 Principal Amount, subject to adjustment in certain events described
in the Indenture. The Company will pay cash in lieu of any fractional share of
Common Stock. Each Holder's rights to convert Notes into Common Stock are
subject to the Company's right to elect instead to pay each such Holder the
amount of cash determined pursuant to Article Fifteen of the Indenture (or a
combination of cash and Common Stock) in lieu of delivering such Common Stock.

         To convert a Note, a Holder must (i) complete and manually sign the
conversion notice on the back of the Note (or complete and manually sign a
facsimile of such notice) and deliver such notice to the Conversion Agent (or
the office or agency referred to in Section 1002 of the Indenture) or, in the
case of a Global Note, deliver a conversion notice according to the procedures
of The Depository Trust Company ("DTC" or the "Depositary," which term includes
any

                                      A-7
<PAGE>

successor thereto), (ii) surrender the Note to a Conversion Agent by physical
delivery or, in the case of a Global Note, according to the procedures of the
Depositary, (iii) furnish appropriate endorsements and transfer documents if
required by the Conversion Agent, the Company or the Trustee, (iv) make any
payment required pursuant to the second succeeding paragraph and (v) pay any
transfer or similar tax, if required. Conversion through the Depositary's
book-entry conversion program is available for any Note that is held in an
account maintained at the Depositary by any financial institution that is a
participant in the Depositary.

         A Holder may convert a portion of a Note if the Principal Amount of
such portion is $1,000 or an integral multiple of $1,000. Except as provided in
the next paragraph, no Holder of Notes will be entitled, upon conversion of any
Note, to any actual cash payment or adjustment to the shares of Common Stock
into which such Note is convertible on account of accrued and unpaid interest or
on account of dividends on shares of Common Stock issued in connection with the
conversion the record date for which occurred prior to the Conversion Date. On
conversion of a Note, that portion of accrued and unpaid interest attributable
to the period from (x) the later of the Issue Date and the date on which
interest was last paid to (y) the Conversion Date with respect to the converted
Note shall not be cancelled, extinguished or forfeited, but rather shall be
deemed to be paid in full to the Holder thereof through delivery of the Common
Stock and any cash payment for fractional shares (or cash or a combination of
cash and Common Stock in lieu thereof as permitted by the Indenture) in exchange
for the Note being converted pursuant to the terms hereof, and the Fair Market
Value of such Common Stock and any cash payment for fractional shares (or cash
or a combination of cash and Common Stock in lieu thereof as permitted by the
Indenture) shall be treated as issued or paid, to the extent thereof, first in
exchange for the interest accrued through the Conversion Date, and the balance,
if any, of such Fair Market Value shall be treated as issued in exchange for the
Principal Amount of the Note being converted pursuant to the provisions hereof.

         Notwithstanding the preceding paragraph, if the Conversion Date occurs
after the close of business on a Regular Record Date but prior to the opening of
business on the next succeeding Interest Payment Date, Holders of Notes at the
close of business on such Regular Record Date will receive the interest payment
on their Notes on the corresponding Interest Payment Date notwithstanding the
conversion. Such Notes, upon surrender for conversion, must be accompanied by
funds equal to the amount of interest payable on the Notes so converted;
provided that no such payment need be made if (1) the Company has specified a
Redemption Date that is after such Regular Record Date and prior to the next
Interest Payment Date, (2) the Company has specified a Change in Control
Purchase Date that is during such period or (3) only to the extent of overdue
interest, any overdue interest exists at the time of conversion with respect to
such Note. In addition, if the Conversion Date occurs on an Interest Payment
Date, the Notes to be converted, upon surrender for conversion, must be
accompanied by funds equal to the

                                      A-8
<PAGE>

dividends on the shares of Common Stock issued in connection with the conversion
the record date for which is the Conversion Date.

         The Conversion Rate will be adjusted for (i) dividends or distributions
on Common Stock payable in Common Stock or other Capital Stock of the Company,
(ii) subdivisions, combinations or certain reclassifications of Common Stock,
(iii) distributions to all holders of Common Stock of certain rights, warrants
or options to purchase Common Stock or securities convertible into Common Stock
for a period expiring within 60 days after the applicable record date for such
distribution at a price per share less than the Sale Price at the Time of
Determination, (iv) distributions to all holders of Common Stock of assets or
debt securities of the Company or certain rights, warrants or options to
purchase securities of the Company (excluding distributions to which any of the
preceding three clauses apply and certain cash dividends or other cash
distributions), (v) cash distributions to substantially all holders of Common
Stock that, together with all other all-cash distributions and consideration
payable in respect of any tender or exchange offer by the Company or one of its
Subsidiaries for Common Stock made within the preceding twelve months, exceeds
5.0% of the Company' s aggregate Market Capitalization on the date of the
distribution, and (vi) repurchases (including by way of a tender offer) of
Common Stock which involve an aggregate consideration that, together with (a)
any cash and other consideration payable in respect of any tender or exchange
offer by the Company or one of its Subsidiaries for Common Stock concluded
within the preceding twelve months and (b) the amount of any all-cash
distributions to all holders of Common Stock made within the preceding twelve
months, exceeds 5.0% of the Company's aggregate Market Capitalization on the
date of such repurchase. However, no adjustment need be made if Holders may
participate in the transaction or in certain other cases. The Company from time
to time may voluntarily increase the Conversion Rate.

         If the Company is a party to a consolidation, merger or binding share
exchange of the type specified in the Indenture, or certain transfers of all or
substantially all of its assets to another Person, or in certain other
circumstances described in the Indenture, the right to convert a Note into
Common Stock may be changed into a right to convert it into the kind and amount
of securities, cash or other assets that the Holder would have received if the
Holder had converted such Holder's Notes immediately prior to such transaction.

9. Conversion Arrangement on Call for Redemption

         Any Notes called for redemption, unless surrendered for conversion
before the Redemption Date, may be deemed to be purchased from the Holders of
such Notes at an amount not less than the Redemption Price, plus (unless the
Redemption Date is an Interest Payment Date) accrued and unpaid interest to but
excluding the Redemption Date, by one or more investment banks or other
purchasers who may agree with the Company to purchase such Notes from the

                                      A-9
<PAGE>

Holders and to make payment for such Notes to the Trustee in trust for such
Holders.

10. Denominations; Transfer; Exchange

         The Notes initially issued are in permanent global form. Under certain
circumstances described in the Indenture, Notes may also be issued in the form
of certificated Notes in fully registered form, without coupons, in minimum
denominations of $1,000 Principal Amount or in integral multiples thereof. A
Holder may register a transfer or exchange of Notes in accordance with the
Indenture. The Security Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and to pay any taxes or
other governmental changes required by law or permitted by the Indenture. The
Security Registrar need not register the transfer or exchange of any Notes
selected for redemption (except, in the case of a Note to be redeemed in part,
the portion of the Note not to be redeemed) or any Notes in respect of which a
Repurchase Notice or a Change in Control Purchase Notice has been given and not
withdrawn (except, in the case of a Note to be purchased in part, the portion of
the Note not to be purchased) or any Notes for a period of 15 days before a
selection of Notes to be redeemed.

11. Persons Deemed Owners

         The registered Holder of this Note may be treated as the owner of this
Note for all purposes, except as otherwise provided in Section 203 of the
Indenture.

12. Unclaimed Money for Notes

         Any money or other consideration deposited with the Trustee or any
Paying Agent, or then held by the Company, in trust for the payment of any
amount with respect to the Notes and remaining unclaimed for three years after
such amounts have become due and payable shall be paid to the Company on Company
Request (unless otherwise required by mandatory provisions of the applicable
escheat or abandoned or unclaimed property law), or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Note shall
thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that, if any Notes then
Outstanding are in certificated form, the Trustee or such Paying Agent, before
being required to make any such repayment, may at the expense of the Company
cause to be published once, in an Authorized Newspaper in The Borough of
Manhattan, The City of New York, and in such other Authorized Newspapers as the
Trustee shall deem appropriate, notice that such money remains unclaimed and
that, after a date specified therein, which shall not be less than 30 days from
the date of such publication, any unclaimed balance of such money then

                                      A-10
<PAGE>

remaining will (unless otherwise required by mandatory provisions of applicable
escheat or abandoned or unclaimed property law) be repaid to the Company.

13. Amendment; Waiver

         Subject to certain exceptions set forth in the Indenture, (i) the
Indenture or the Notes may be amended with the written consent of the Holders of
at least a majority in aggregate principal amount of the Notes at the time
Outstanding and (ii) certain defaults or noncompliance with certain provisions
may be waived with the written consent of the Holders of a majority in aggregate
principal amount of the Notes at the time Outstanding. Subject to certain
exceptions set forth in the Indenture, without the consent of any Holder, the
Company and the Trustee may amend or supplement the Indenture or the Notes in
certain respects set forth in the Indenture.

14. Defaults and Remedies

         Under the Indenture, Events of Default include (i) default in the
payment of interest that continues for a period of 30 days; (ii) default in (a)
the payment (other than payment in shares of Common Stock or cash in lieu of
fractional interests in shares of Common Stock, which is covered by clause (b)
of this sentence) of the Principal Amount, Redemption Price, Purchase Price or
Change in Control Purchase Price with respect to any Note when the same becomes
due and payable or (b) the delivery of shares of Common Stock (or cash in lieu
of fractional interests in shares of Common Stock) in accordance with the terms
of the Indenture when such Common Stock or cash is required to be delivered
following conversion or repurchase of a Note and such default is not remedied
for a period of 10 days; (iii) failure by the Company to comply with the
provisions of Sections 801 and 1110 of the Indenture; (iv) failure by the
Company or any Subsidiary Guarantor for 30 days after notice from the Trustee or
the Holders of at least 25% in aggregate principal amount of the Notes then
Outstanding to comply with any of its other agreements in the Indenture or the
Notes; (v) any Subsidiary Guarantee shall for any reason cease to be, or be
asserted by the Company or any Subsidiary Guarantor, as applicable, not to be,
in full force and effect (except pursuant to the release of any such Subsidiary
Guarantee in accordance with the Indenture); (vi) failure by the Company or any
of its Subsidiaries to pay Indebtedness (other than Non-Recourse Indebtedness or
Limited Recourse Indebtedness) of the Company or any Subsidiary when due within
the applicable grace period, or the acceleration of such Indebtedness, which
Indebtedness exceeds $10 million in the aggregate; and (vii) certain events of
bankruptcy or insolvency with respect to the Company or any of its Subsidiaries
that constitute a Significant Subsidiary or any group of Subsidiaries that,
taken together, would constitute a Significant Subsidiary. If an Event of
Default occurs and is continuing, either the Trustee or the Holders of at least
25% in aggregate principal amount of the Notes at the time Outstanding may
declare the Principal Amount of the Notes to be due and payable immediately,
except that, in

                                      A-11
<PAGE>

the case of an Event of Default specified in clause (iv) above, if the Event of
Default affects more than one series of Securities, the Trustee, or the Holders
of not less than 25% in principal amount of the Outstanding Securities, of all
series of Securities shall be required to make such declaration Certain events
of bankruptcy or insolvency are Events of Default that will result in the
Principal Amount of the Notes becoming due and payable immediately upon the
occurrence of such Events of Default.

         As set forth in, and subject to the provisions of, the Indenture, no
Holder of any Note shall have any right to institute any proceeding, judicial or
otherwise, with respect to the Indenture, or for the appointment of a receiver
or trustee, or for any other remedy thereunder, unless certain conditions set
forth in the Indenture have been satisfied. The Trustee may refuse to enforce
the Indenture or the Notes unless it receives reasonable indemnity or security.
Subject to certain limitations (including that, in some cases, a majority in
principal amount of all Outstanding Securities is required), Holders of a
majority in aggregate principal amount of the Outstanding Notes shall have the
right to direct the time, method and place of conducting certain proceedings, or
exercising any trust or power conferred on the Trustee.

15. Trustee Dealings with the Company

         Subject to certain limitations imposed by the Trust Indenture Act, the
Trustee under the Indenture, in its individual or any other capacity, may become
the owner or pledgee of Notes and may otherwise deal with the Company with the
same rights it would have if it were not Trustee.

16. Authentication

         This Note shall not be valid until an authorized officer of the Trustee
manually signs the Certificate of Authentication on the other side of this Note.

17. Additional Amounts

         The Company is not obligated to pay Additional Amounts with respect to
the Notes.

18. Abbreviations

         Customary abbreviations may be used in the name of a Holder or an
assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with right of survivorship and not as
tenants in common), CUST (=custodian), and UNIF TRANS MIN ACT (=Uniform
Transfers to Minors Act).

                                      A-12
<PAGE>

19. Governing Law

         THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

[20. Registration Rights Agreement

         The Holder of this Note is entitled to the benefits of the Registration
Rights Agreement, dated April 28, 2003, between the Company and Morgan Stanley &
Co. Incorporated.]+

         The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture which has in it the text of this Note. Requests
may be made to:

                  Pride International, Inc.
                  5847 San Felipe, Suite 3300
                  Houston, Texas 77057
                  Attention: General Counsel

------------------------------------
+ On Transfer Restricted Notes only.

                                      A-13
<PAGE>

                                CONVERSION NOTICE

To convert this Note into Common Stock of the Company, check the box: [ ]

To convert only part of this Note, state the Principal Amount to be converted
(which must be $1,000 or an integral multiple of $1,000):

$_______________________________

         If you want the share certificate made out in another Person's name,
fill in the form below:

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

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

                                 (Insert other Person's soc. sec. or tax ID no.)

___________________________
___________________________
___________________________
___________________________
(Print or type other Person's name, address and zip code)

________________________________________________________________________________

Date:_____________________ Your Signature:_______________________
                           (Sign exactly as your name appears on the face of
                           this Note)
Signature Guarantee:____________________________________________________________
                        (Participant in a Recognized Signature
                             Guarantee Medallion Program)

                                      A-14

<PAGE>

                                 TRANSFER NOTICE

This Transfer Notice relates to $______________________ Principal Amount of the
3 1/4% Senior Convertible Notes Due 2033 of Pride International, Inc., a
Delaware corporation, held by ______________________________ (the "Transferor").

                  (I) or (we) assign and transfer this Note to

________________________________________________________________________________
              (Print or type assignee's name, address and zip code)

________________________________________________________________________________
               (Insert assignee's social security or tax I.D. no.)

and irrevocably appoint _______________________________ agent to transfer this
Note on the books of the Company. The agent may substitute another to act for
him.

Your Signature: ________________________________________________________________
(Sign exactly as your name appears on the other side of this Note)

Date: ___________

Signature Guarantee:____________________________________________________________
                       (Participant in a Recognized Signature
                           Guarantee Medallion Program)

In connection with any transfer of any of the Notes evidenced by this
certificate occurring prior to the date that is two years after the later of the
date of original issuance of such Notes and the last date, if any, on which such
Notes were owned by the Company or any Affiliate of the Company, the undersigned
confirms that such Notes are being transferred:

CHECK ONE BOX BELOW

(1)[ ]   to Pride International, Inc.; or

(2)[ ]   to a "qualified institutional buyer" pursuant to and in compliance with
         Rule 144A under the Securities Act of 1933, as amended, that is
         purchasing for its own account or for the account of a "qualified
         institutional buyer" to whom notice is given that the resale, pledge or
         other transfer is being made in reliance on Rule 144A; or

(3)[ ]   pursuant to an exemption from the registration requirements of the
         Securities Act of 1933 provided by Rule 144 under the Securities Act;
         or

(4)[ ]   pursuant to an effective registration statement under the Securities
         Act of 1933.

                                      A-15
<PAGE>

         Unless one of the boxes is checked, the Trustee will refuse to register
         any of the Notes evidenced by this certificate in the name of any
         person other than the registered holder thereof; provided, however,
         that the Trustee may require, prior to registering any such transfer of
         the Notes such legal opinions (if box (3) is checked), certifications
         and other information as the Company or the Trustee has reasonably
         requested to confirm that such transfer is being made pursuant to an
         exemption from, or in a transaction not subject to, the registration
         requirements of the Securities Act of 1933, such as the exemption
         provided by Rule 144 under such Act.

         Unless the box below is checked, the undersigned confirms that such
         Note is not being transferred to an "affiliate" of the Company as
         defined in Rule 144 under the Securities Act of 1933, as amended (an
         "Affiliate"):

(5)[ ]   The transferee is an Affiliate of the Company.

Signature: ___________________________________

Date: ___________

Signature Guarantee:____________________________________________________________
                       (Participant in a Recognized Signature
                           Guarantee Medallion Program)

                                      A-16
<PAGE>

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED.

The undersigned (i) represents and warrants that it is purchasing this Note for
its own account or for an account with respect to which it exercises sole
investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933, (ii) is aware that the sale to it is being made in reliance on Rule 144,
(iii) acknowledges that this Note and the Common Stock issuable upon conversion
thereof have not been registered under the Securities Act and may not be sold
except in compliance with the legend on the face of this Note and that it has
received such information regarding the Company as the undersigned has requested
pursuant to Rule 144A or has determined not to request such information and (iv)
is aware that the transferor is relying upon the undersigned's foregoing
representations in order to claim the exemption from registration provided by
Rule 144A.

Dated:_______________

[Signature of executive officer of purchaser]
Name:_______________________________
Title:______________________________

                                      A-17
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE
                             UPON CHANGE IN CONTROL

         If you want to elect to have this Note purchased by the Company
pursuant to Section 1110 of the Indenture, check this box: [ ]

         If you want to elect to have only part of this Note purchased by the
Company pursuant to Section 1110 of the Indenture, state the Principal Amount
you elect to have purchased: $_____________________ (in multiples of $1,000)

Date:_____________                  Your Signature: ______________________
                  (Sign exactly as your name appears on the Note)

                  Tax Identification No.:_____________________

Signature Guarantee:____________________________________________________________
                       (Participant in a Recognized Signature
                           Guarantee Medallion Program)

                                      A-18
<PAGE>

                      [SCHEDULE OF EXCHANGES OF SECURITIES

         The following exchanges of a part of this Global Note for other Notes
have been made:

<TABLE>
<CAPTION>
                                                            Principal Amount     Signature of
                                                                 of this          authorized
                   Amount of              Amount of            Global Note          officer
                  decrease in            increase in            following        of Trustee or
 Date of      Principal Amount of    Principal Amount of      such decrease        Security
Exchange        this Global Note      this Global Note        (or increase)        Custodian
--------        ----------------      ----------------        -------------        ---------
<S>           <C>                    <C>                    <C>                  <C>
</TABLE>

]*

                                      A-19
<PAGE>

                                    EXHIBIT B

                    FORM OF NOTATION OF SUBSIDIARY GUARANTEE

         Each of the Subsidiary Guarantors hereby, jointly and severally,
unconditionally guarantees to each Holder of a Note authenticated and delivered
by the Trustee and to the Trustee and its successors and assigns, irrespective
of the validity and enforceability of the Indenture, the Notes or the
obligations of the Company thereunder, that: (a) the principal of and any
premium and interest on the Notes shall be promptly paid in full when due,
whether at Stated Maturity, by acceleration, redemption or otherwise, and
interest on the overdue principal of and interest on premium and interest on the
Notes, if any, if lawful, and all other obligations of the Company to the
Holders or the Trustee thereunder shall be promptly paid in full or performed,
all in accordance with the terms thereof; and (b) in case of any extension of
time of payment or renewal of any Notes or any of such other obligations, that
same shall be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at stated maturity, by acceleration
or otherwise. Failing payment when due of any amount so guaranteed or any
performance so guaranteed for whatever reason, the Subsidiary Guarantors shall
be jointly and severally obligated to pay the same immediately.

         The obligations of the Subsidiary Guarantors to the Holders of Notes
and to the Trustee pursuant to this Subsidiary Guarantee are expressly set forth
in Article Fourteen of the Indenture, and reference is hereby made to such
Article for the precise terms of this Subsidiary Guarantee. The terms of Article
Fourteen of the Indenture are incorporated herein by reference.

         This is a continuing Subsidiary Guarantee and shall remain in full
force and effect and shall be binding upon each Subsidiary Guarantor and its
respective successors and assigns to the extent set forth in the Indenture until
full and final payment of all of the Company's obligations under the Notes and
the Indenture and shall inure to the benefit of the Trustee and the Holders of
Notes and their successors and assigns and, in the event of any transfer or
assignment of rights by any Holder of Notes or the Trustee, the rights and
privileges herein conferred upon that party shall automatically extend to and be
vested in such transferee or assignee, all subject to the terms and conditions
hereof. Notwithstanding the foregoing, the Subsidiary Guarantees may be
discharged in accordance with Article Four of the Indenture and any Subsidiary
Guarantor that satisfies the provisions of Section 1404 of the Indenture shall
be released of its obligations hereunder. This is a Subsidiary Guarantee of
payment and not a guarantee of collection.

         This Subsidiary Guarantee shall not be valid or obligatory for any
purpose until the certificate of authentication on the Note upon which this
Subsidiary Guarantee is noted shall have been executed by the Trustee under the
Indenture by the manual signature of one of its authorized officers.

                                      B-1
<PAGE>

         For purposes hereof, each Subsidiary Guarantor's liability will be that
amount from time to time equal to the aggregate liability of such Subsidiary
Guarantor hereunder, but shall be limited to the lesser of (i) the aggregate
amount of the obligations of the Company under the Notes and the Indenture and
(ii) the amount, if any, which would not have (A) rendered such Subsidiary
Guarantor "insolvent" (as such term is defined in the Bankruptcy Act and in the
Debtor and Creditor Law of the State of New York) or (B) left it with
unreasonably small capital at the time its Subsidiary Guarantee of the Notes was
entered into, after giving effect to the incurrence of existing Indebtedness
immediately prior to such time; provided that, it shall be a presumption in any
lawsuit or other proceeding in which such Subsidiary Guarantor is a party that
the amount guaranteed pursuant to its Subsidiary Guarantee is the amount set
forth in clause (i) above unless any creditor, or representative of creditors of
such Subsidiary Guarantor, or debtor in possession or trustee in bankruptcy of
such Subsidiary Guarantor, otherwise proves in such a lawsuit that the aggregate
liability of such Subsidiary Guarantor is limited to the amount set forth in
clause (ii). The Indenture provides that, in making any determination as to the
solvency or sufficiency of capital of a Subsidiary Guarantor in accordance with
the previous sentence, the right of such Subsidiary Guarantor to contribution
from other Subsidiary Guarantors and any other rights such Subsidiary Guarantor
may have, contractual or otherwise, shall be taken into account.

         Capitalized terms used herein have the same meanings given in that
certain Indenture dated as of May 1, 1997 between Pride International, Inc.
(formerly Pride Petroleum Services, Inc.) and JPMorgan Chase Bank (formerly The
Chase Manhattan Bank), as Trustee, as supplemented by the Sixth Supplemental
Indenture dated as of April 28, 2003 between Pride International, Inc. and
JPMorgan Chase Bank, as Trustee, and as otherwise supplemented with
applicability with respect to the Notes, unless otherwise indicated.

                                             [Name of Subsidiary Guarantor]

                                             By:___________________________
                                             Name:_________________________
                                             Title:________________________

                                      B-2<PAGE>
                                                                     EXHIBIT 4.4

                            PRIDE INTERNATIONAL, INC.

                                       and

                               JPMORGAN CHASE BANK

                                                               Trustee.

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

                     FORM OF SEVENTH SUPPLEMENTAL INDENTURE

                           Dated [           ], 2003

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

<PAGE>
         THIS SEVENTH SUPPLEMENTAL INDENTURE, dated [          ], 2003, between
Pride International, Inc., a Delaware corporation (successor by merger to Pride
International, Inc., a Louisiana corporation formerly known as Pride Petroleum
Services, Inc.) (the "Company"), and JPMorgan Chase Bank (formerly known as The
Chase Manhattan Bank), a New York banking corporation, as Trustee (the
"Trustee") under the Indenture (as defined below).

                              W I T N E S S E T H:

         WHEREAS, the Company has duly authorized the issuance from time to time
of its unsecured debentures, notes or other evidences of indebtedness (the
"Securities"), which are to be issued in one or more series, and the Company has
heretofore made, executed and delivered to the Trustee its Indenture dated as of
May 1, 1997 (the "Original Indenture") pursuant to which the Securities are
issuable;

         WHEREAS, pursuant to the Sixth Supplemental Indenture dated as of April
28, 2003 (the "Sixth Supplemental Indenture"), the Company has issued its fifth
series of Securities designated as its 3 1/4% Convertible Senior Notes Due 2033
(the "Notes"; the Original Indenture, as supplemented by this Seventh
Supplemental Indenture and as otherwise supplemented with applicability with
respect to the Notes, the "Indenture");

         WHEREAS, Section 901 of the Original Indenture provides that, under
certain conditions, the Company and Trustee, may, without the consent of any
Holders, from time to time and at any time, enter into an indenture or
indentures supplemental thereto, for the purposes, inter alia, of curing any
ambiguity or correcting or supplementing any provision in the Indenture that may
be defective or inconsistent with any other provision in the Indenture, and the
Company desires, by means of this Seventh Supplemental Indenture, to correct
Annex 1 to the Sixth Supplemental Indenture; and

         WHEREAS, all things necessary to make this Seventh Supplemental
Indenture a valid agreement of the Company, in accordance with its terms, have
been done.

         NOW, THEREFORE, THIS SEVENTH SUPPLEMENTAL INDENTURE WITNESSETH that,
for and in consideration of the premises and the purchase of the Notes by the
Holders, the Company and the Trustee mutually covenant and agree, solely for the
equal and proportionate benefit of the respective Holders from time to time of
Notes, as follows:

                                   ARTICLE 1

                                   SUPPLEMENT

         The Sixth Supplemental Indenture is supplemented by, effective as of
the effective date of the Sixth Supplemental Indenture, revising Annex 1 to the
Sixth Supplemental Indenture to read as follows:

                                       1

<PAGE>
                                     ANNEX 1

                           PROJECTED PAYMENT SCHEDULE

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                         Payment
                                                                                          Upon                 Discount
                                                                                        Conversion              Factor
                                                       Trigger                         Immediately              using      Present
                  Number of                              Met?                  Non-       Prior                 Total     Value of
                 Semi-Annual       Stock      Bond     (Yes=1,  Contingent  Contingent      to        Total   Comparable    Total
Date               Periods         Price      Price     No=0)     Payment     Payment    Maturity   Payments    Yield     Payments
------------------------------------------------------------------------------------------------------------------------------------
<C>              <C>               <C>      <C>          <C>     <C>         <C>       <C>         <C>        <C>          <C>
4/28/2003                          14.28    1,000.00                                               1,000.00      1.00    1,000.00
11/1/2003           1.02           14.89    1,000.00                         (16.52)                 (16.52)     0.96      (15.86)
5/1/2004            1.00           15.52    1,000.00                         (16.25)                 (16.25)     0.92      (14.98)
11/1/2004           1.00           16.17    1,000.00                         (16.25)                 (16.25)     0.89      (14.38)
5/1/2005            1.00           16.85    1,000.00                         (16.25)                 (16.25)     0.85      (13.81)
11/1/2005           1.00           17.56    1,000.00                         (16.25)                 (16.25)     0.82      (13.27)
5/1/2006            1.00           18.30    1,000.00                         (16.25)                 (16.25)     0.78      (12.74)
11/1/2006           1.00           19.08    1,000.00                         (16.25)                 (16.25)     0.75      (12.24)
5/1/2007            1.00           19.88    1,000.00                         (16.25)                 (16.25)     0.72      (11.75)
11/1/2007           1.00           20.72    1,000.00                         (16.25)                 (16.25)     0.69      (11.29)
5/1/2008            1.00           21.59    1,000.00       0                 (16.25)                 (16.25)     0.67      (10.84)
11/1/2008           1.00           22.50    1,000.00       0        -        (16.25)                 (16.25)     0.64      (10.41)
5/1/2009            1.00           23.45    1,000.00       0        -        (16.25)                 (16.25)     0.62      (10.00)
11/1/2009           1.00           24.43    1,000.00       0        -        (16.25)                 (16.25)     0.59       (9.60)
5/1/2010            1.00           25.46    1,000.00       0        -        (16.25)                 (16.25)     0.57       (9.22)
11/1/2010           1.00           26.54    1,032.38       0        -        (16.25)                 (16.25)     0.54       (8.86)
5/1/2011            1.00           27.65    1,075.87       0        -        (16.25)                 (16.25)     0.52       (8.51)
11/1/2011           1.00           28.82    1,121.20       0        -        (16.25)                 (16.25)     0.50       (8.17)
5/1/2012            1.00           30.03    1,168.43       0        -        (16.25)                 (16.25)     0.48       (7.84)
11/1/2012           1.00           31.30    1,217.65       1        -        (16.25)                 (16.25)     0.46       (7.53)
5/1/2013            1.00           32.62    1,268.95       1      (3.04)     (16.25)                 (19.29)     0.45       (8.59)
11/1/2013           1.00           33.99    1,322.41       1      (3.17)     (16.25)                 (19.42)     0.43       (8.31)
5/1/2014            1.00           35.42    1,378.12       1      (3.31)     (16.25)                 (19.56)     0.41       (8.03)
11/1/2014           1.00           36.92    1,436.17       1      (3.45)     (16.25)                 (19.70)     0.39       (7.77)
5/1/2015            1.00           38.47    1,496.68       1      (3.59)     (16.25)                 (19.84)     0.38       (7.52)
11/1/2015           1.00           40.09    1,559.73       1      (3.74)     (16.25)                 (19.99)     0.36       (7.27)
5/1/2016            1.00           41.78    1,625.44       1      (3.90)     (16.25)                 (20.15)     0.35       (7.04)
11/1/2016           1.00           43.54    1,693.91       1      (4.06)     (16.25)                 (20.31)     0.34       (6.82)
5/1/2017            1.00           45.37    1,765.27       1      (4.23)     (16.25)                 (20.48)     0.32       (6.60)
11/1/2017           1.00           47.29    1,839.64       1      (4.41)     (16.25)                 (20.66)     0.31       (6.39)
5/1/2018            1.00           49.28    1,917.14       1      (4.60)     (16.25)                 (20.85)     0.30       (6.20)
11/1/2018           1.00           51.35    1,997.90       1      (4.79)     (16.25)                 (21.04)     0.29       (6.01)
5/1/2019            1.00           53.52    2,082.07       1      (4.99)     (16.25)                 (21.24)     0.27       (5.82)
11/1/2019           1.00           55.77    2,169.78       1      (5.21)     (16.25)                 (21.46)     0.26       (5.65)
5/1/2020            1.00           58.12    2,261.19       1      (5.42)     (16.25)                 (21.67)     0.25       (5.48)
11/1/2020           1.00           60.57    2,356.45       1      (5.65)     (16.25)                 (21.90)     0.24       (5.32)
5/1/2021            1.00           63.12    2,455.72       1      (5.89)     (16.25)                 (22.14)     0.23       (5.16)
11/1/2021           1.00           65.78    2,559.17       1      (6.14)     (16.25)                 (22.39)     0.22       (5.01)
5/1/2022            1.00           68.55    2,666.98       1      (6.40)     (16.25)                 (22.65)     0.22       (4.87)
11/1/2022           1.00           71.44    2,779.34       1      (6.67)     (16.25)                 (22.92)     0.21       (4.73)
5/1/2023            1.00           74.45    2,896.42       1      (6.95)     (16.25)                 (23.20)     0.20       (4.60)
11/1/2023           1.00           77.59    3,018.44       1      (7.24)     (16.25)                 (23.49)     0.19       (4.48)
5/1/2024            1.00           80.85    3,145.60       1      (7.55)     (16.25)                 (23.80)     0.18       (4.35)
11/1/2024           1.00           84.26    3,278.12       1      (7.86)     (16.25)                 (24.11)     0.18       (4.24)
5/1/2025            1.00           87.81    3,416.22       1      (8.20)     (16.25)                 (24.45)     0.17       (4.13)
11/1/2025           1.00           91.51    3,560.13       1      (8.54)     (16.25)                 (24.79)     0.16       (4.02)
5/1/2026            1.00           95.36    3,710.11       1      (8.90)     (16.25)                 (25.15)     0.16       (3.91)
11/1/2026           1.00           99.38    3,866.41       1      (9.28)     (16.25)                 (25.53)     0.15       (3.82)
5/1/2027            1.00          103.57    4,029.30       1      (9.67)     (16.25)                 (25.92)     0.14       (3.72)
11/1/2027           1.00          107.93    4,199.04       1     (10.07)     (16.25)                 (26.32)     0.14       (3.63)
5/1/2028            1.00          112.48    4,375.93       1     (10.50)     (16.25)                 (26.75)     0.13       (3.54)
11/1/2028           1.00          117.22    4,560.28       1     (10.94)     (16.25)                 (27.19)     0.13       (3.46)
5/1/2029            1.00          122.16    4,752.40       1     (11.40)     (16.25)                 (27.65)     0.12       (3.38)
11/1/2029           1.00          127.30    4,952.60       1     (11.88)     (16.25)                 (28.13)     0.12       (3.30)
5/1/2030            1.00          132.66    5,161.24       1     (12.38)     (16.25)                 (28.63)     0.11       (3.23)
11/1/2030           1.00          138.25    5,378.67       1     (12.90)     (16.25)                 (29.15)     0.11       (3.15)
5/1/2031            1.00          144.08    5,605.26       1     (13.45)     (16.25)                 (29.70)     0.10       (3.09)
11/1/2031           1.00          150.15    5,841.40       1     (14.01)     (16.25)                 (30.26)     0.10       (3.02)
5/1/2032            1.00          156.47    6,087.48       1     (14.60)     (16.25)                 (30.85)     0.10       (2.96)
11/1/2032           1.00          163.06    6,343.94       1     (15.22)     (16.25)                 (31.47)     0.09       (2.90)
5/1/2033            1.00          169.93    6,611.19       1     (15.86)     (16.25)  (6,611.19)  (6,643.30)     0.09     (587.21)
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             TOTAL PV        0.00
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       2
<PAGE>

                                   ARTICLE 2

                             CONCERNING THE TRUSTEE

Section 2.01. Acceptance of Trusts. The Trustee accepts the trusts hereunder and
agrees to perform the same, but only upon the terms and conditions set forth in
the Original Indenture (as otherwise supplemented with applicability with
respect to the Notes) and in this Seventh Supplemental Indenture, to all of
which the Company and the respective Holders of the Notes at any time hereafter
Outstanding agree by their acceptance thereof.

Section 2.02. No Responsibility of Trustee for Recitals, Etc. The recitals and
statements contained in this Seventh Supplemental Indenture shall be taken as
the recitals and statements of the Company, and the Trustee assumes no
responsibility for the correctness of the same. The Trustee makes no
representations as to the validity or sufficiency of this Seventh Supplemental
Indenture, except that the Trustee is duly authorized by all necessary corporate
actions to execute and deliver this Seventh Supplemental Indenture. The
execution by the Trustee of this Seventh Supplemental Indenture shall not be
construed to be an approval or disapproval by the Trustee of the advisability of
the action being taken herein by the Company. All the provisions of the
Indenture with respect to the rights, privileges, immunities, powers and duties
of the Trustee shall be applicable in respect hereof as fully and with like
effect as if set forth herein in full with such omissions, variations or
insertions, if any, as may be appropriate to make the same conform to this
Seventh Supplemental Indenture.

                                   ARTICLE 3

                            MISCELLANEOUS PROVISIONS

Section 3.01. Relation to the Original Indenture. This Seventh Supplemental
Indenture and all the terms and provisions herein contained shall form a part of
the Original Indenture as fully and with the same effect as if all such terms
and provisions had been set forth in the Original Indenture; provided, however,
such terms and provisions shall be so included in this Seventh Supplemental
Indenture solely for the benefit of the Company, the Subsidiary Guarantors, the
Trustee and the Holders of the Notes. The Original Indenture is hereby ratified
and confirmed and shall remain and continue in full force and effect in
accordance with the terms and provisions thereof, as supplemented by this
Seventh Supplemental Indenture and as otherwise supplemented with applicability
with respect to the Notes, and the Original Indenture (as otherwise supplemented
with applicability with respect to the Notes) and this Seventh Supplemental
Indenture shall be read, taken and construed together as one instrument.

Section 3.02. Meaning of Terms. Any term used in this Seventh Supplemental
Indenture which is defined in the Original Indenture shall have the meaning
specified in the Original Indenture (as otherwise supplemented with
applicability with respect to the Notes), unless the context shall otherwise
require.

                                       3
<PAGE>

Section 3.03. Counterparts of Supplemental Indenture. This Seventh Supplemental
Indenture may be executed in several counterparts, each of which shall be deemed
an original, but all of which together shall constitute one instruments.

Section 3.04. Governing Law. This Seventh Supplemental Indenture shall be
governed by and construed in accordance with the laws of the State of New York.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       4

<PAGE>
         IN WITNESS WHEREOF, Pride International, Inc. has caused this Seventh
Supplemental Indenture to be executed in its corporate name by a duly authorized
officer and JPMorgan Chase Bank has caused this Seventh Supplemental Indenture
to be executed by a duly authorized officer, all on the date first above
written.

                                  PRIDE INTERNATIONAL, INC.

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

                                  JPMORGAN CHASE BANK,
                                  as Trustee

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

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