Document:

<PAGE>
                                                                    EXHIBIT 4.32

                                                                  EXECUTION COPY

================================================================================

                               CREDIT AGREEMENT

                                  Dated as of

                               December 29, 2000

                                     Among

                         TRANSOCEAN SEDCO FOREX INC.,

                          THE LENDERS PARTIES HERETO,

                                SUNTRUST BANK,
                           as Administrative Agent,

                             ABN AMRO BANK, N.V.,
                             as Syndication Agent,

                            BANK OF AMERICA, N.A.,
                            as Documentation Agent,

                                      And

                 WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION,
                           as Senior Managing Agent

                  SUNTRUST EQUITABLE SECURITIES CORPORATION,
                       as Lead Arranger and Book Runner

================================================================================
<PAGE>

                                                                  EXECUTION COPY

                               CREDIT AGREEMENT
                               ----------------

     THIS CREDIT AGREEMENT (the "Agreement"), dated as of December 29, 2000,
among TRANSOCEAN SEDCO FOREX INC. (the "Borrower"), a Cayman Islands company,
the lenders from time to time parties hereto (each a "Lender" and collectively,
the "Lenders"), SUNTRUST BANK, a Georgia banking corporation ("STB"), as
administrative agent for the Lenders (in such capacity, the "Administrative
Agent"), ABN AMRO BANK, N.V., as syndication agent for the Lenders (in such
capacity, the "Syndication Agent"), BANK OF AMERICA, N.A., as documentation
agent for the Lenders (in such capacity, the "Documentation Agent"), WELLS FARGO
BANK TEXAS, NATIONAL ASSOCIATION, as senior managing agent for the Lenders (in
such capacity, the "Senior Managing Agent"), and STB, as issuing bank of the
Letters of Credit hereunder (STB and any other Lender that issues a Letter of
Credit hereunder, in such capacity, an "Issuing Bank").

                                  WITNESSETH:

     WHEREAS, the Borrower has requested that the Lenders establish in its favor
a revolving credit facility in the aggregate principal amount of U.S.
$550,000,000, pursuant to which facility loans would be made to, and letters of
credit would be issued for the account of, the Borrower;

     WHEREAS, the Borrower has further requested that a portion of such loans
and letters of credit be made and issued in certain currencies other than U.S.
dollars in an aggregate principal amount up to the U.S. dollar equivalent of
$200,000,000;

     WHEREAS, the Lenders are willing to make such revolving credit facility
available to the Borrower on the terms and subject to the conditions and
requirements hereinafter set forth;

     NOW, THEREFORE, in consideration of the premises and of the mutual
covenants herein contained, the parties hereto agree as follows:

ARTICLE 1.  DEFINITIONS; INTERPRETATION.

     Section 1.1.   Definitions.  Unless otherwise defined herein, the following
                    -----------
terms shall have the following meanings, which meanings shall be equally
applicable to both the singular and plural forms of such terms:

     "Adjusted LIBOR" means, for any Borrowing of Eurocurrency Revolving Loans
for any Interest Period, a rate per annum determined in accordance with the
following formula:

     Adjusted LIBOR  =   LIBOR Rate for such Interest Period
                         -----------------------------------
                            1.00 - Statutory Reserve Rate

     "Adjusted LIBOR Loan" means a Eurocurrency Revolving Loan bearing interest
at a rate based on Adjusted LIBOR as provided in Section 2.7(b).
<PAGE>

     "Administrative Agent" means SunTrust Bank, acting in its capacity as
administrative agent for the Lenders, and any successor Administrative Agent
appointed hereunder pursuant to Section 9.7.

     "Agreement" means this Credit Agreement, as the same may be amended,
restated and supplemented from time to time.

     "Applicable Facility Fee Rate" means for any day, at such times as a debt
rating (either express or implied) by S&P or Moody's (or in the event that both
cease the issuance of debt ratings generally, such other ratings agency agreed
to by the Borrower and the Administrative Agent) is in effect on the Borrower's
non-credit enhanced senior unsecured long-term debt, the percentage per annum
set forth opposite such debt rating:

     Debt Rating                               Percentage
     -----------                               ----------

     A+/A1 or above                            0.070%

     A/A2                                      0.080%

     A-/A3                                     0.100%

     BBB+/Baa1                                 0.125%

     BBB/Baa2                                  0.150%

     BBB-/Baa3 or below                        0.200%

If the ratings issued by S&P and Moody's differ (i) by one rating, the higher
rating shall apply to determine the Applicable Facility Fee Rate, (ii) by two
ratings, the rating which falls between them shall apply to determine the
Applicable Facility Fee Rate, or (iii) by more than two ratings, the rating
immediately above the lower of the two ratings shall apply to determine the
Applicable Facility Fee Rate.  The Borrower shall give written notice to the
Administrative Agent of any changes to such ratings, within three (3) Business
Days thereof, and any change to the Applicable Facility Fee Rate shall be
effective on the date of the relevant change.  Notwithstanding the foregoing,
(i) the Applicable Facility Fee Rate in effect at all times during the first six
months after the Initial Availability Date shall in no event be less than a
percentage per annum equal to 0.125%, and (ii) if the Borrower shall at any time
fail to have in effect such a debt rating on the Borrower's non-credit enhanced
senior unsecured long-term debt, the Borrower shall seek and obtain (if not
already in effect), within thirty (30) days after such debt rating first ceases
to be in effect, a corporate credit rating or a bank loan rating from Moody's or
S&P, or both, and the Applicable Facility Fee Rate shall thereafter be based on
such ratings in the same manner as provided herein with respect to the
Borrower's senior unsecured long-term debt rating (with the Applicable Facility
Fee Rate in effect prior to the issuance of such corporate credit rating or bank
loan rating being the same as the Applicable Facility Fee Rate in effect at the
time the senior unsecured long-term debt rating ceases to be in effect).

                                       2
<PAGE>

     "Applicable Margin" means, for any day, at such times as a debt rating
(either express or implied) by S&P or Moody's (or in the event that both cease
the issuance of debt ratings generally, such other ratings agency agreed to by
the Borrower and the Administrative Agent) is in effect on the Borrower's non-
credit enhanced senior unsecured long-term debt, the percentage per annum set
forth opposite such debt rating:

     Debt Rating                               Percentage
     -----------                               ----------

     A+/A1 or above                            0.180%

     A/A2                                      0.220%

     A-/A3                                     0.300%

     BBB+/Baa1                                 0.450%

     BBB/Baa2                                  0.575%

     BBB-/Baa3 or below                        0.700%

If the ratings issued by S&P and Moody's differ (i) by one rating, the higher
rating shall apply to determine the Applicable Margin, (ii) by two ratings, the
rating which falls between them shall apply to determine the Applicable Margin,
or (iii) by more than two ratings, the rating immediately above the lower of the
two ratings shall apply to determine the Applicable Margin.  The Borrower shall
give written notice to the Administrative Agent of any changes to such ratings,
within three (3) Business Days thereof, and any change to the Applicable Margin
shall be effective on the date of the relevant change.  Notwithstanding the
foregoing, (i) the Applicable Margin in effect at all times during the first six
months after the Initial Availability Date shall in no event be less than a
percentage per annum equal to 0.450%, and (ii) if the Borrower shall at any time
fail to have in effect such a debt rating on the Borrower's non-credit enhanced
senior unsecured long-term debt, the Borrower shall seek and obtain (if not
already in effect), within thirty (30) days after such debt rating first ceases
to be in effect, a corporate credit rating or a bank loan rating from Moody's or
S&P, or both, and the Applicable Margin shall thereafter be based on such
ratings in the same manner as provided herein with respect to the Borrower's
senior unsecured long-term debt rating (with the Applicable Margin in effect
prior to the issuance of such corporate credit rating or bank loan rating being
the same as the Applicable Margin in effect at the time the senior unsecured
long-term debt rating ceases to be in effect).

     "Applicable Utilization Fee Rate" means for any day, at such times as a
debt rating (either express or implied) by S&P or Moody's (or in the event that
both cease the issuance of debt ratings generally, such other ratings agency
agreed to by the Borrower and the Administrative Agent) is in effect on the
Borrower's non-credit enhanced senior unsecured long-term debt, the percentage
per annum set forth opposite such debt rating:

     Debt Rating                               Percentage
     -----------                               ----------

                                       3
<PAGE>

     A+/A1 or above                            0.075%

     A/A2                                      0.100%

     A-/A3                                     0.100%

     BBB+/Baa1                                 0.125%

     BBB/Baa2                                  0.125%

     BBB-/Baa3 or below                        0.150%

If the ratings issued by S&P and Moody's differ (i) by one rating, the higher
rating shall apply to determine the Applicable Utilization Fee Rate, (ii) by two
ratings, the rating which falls between them shall apply to determine the
Applicable Utilization Fee Rate, or (iii) by more than two ratings, the rating
immediately above the lower of the two ratings shall apply to determine the
Applicable Utilization Fee Rate.  The Borrower shall give written notice to the
Administrative Agent of any changes to such ratings, within three (3) Business
Days thereof, and any change to the Applicable Utilization Fee Rate shall be
effective on the date of the relevant change.  Notwithstanding the foregoing,
(i) the Applicable Utilization Fee Rate in effect at all times during the first
six months after the Initial Availability Date shall in no event be less than a
percentage per annum equal to 0.125%, and (ii) if the Borrower shall at any time
fail to have in effect such a debt rating on the Borrower's non-credit enhanced
senior unsecured long-term debt, the Borrower shall seek and obtain (if not
already in effect), within thirty (30) days after such debt rating first ceases
to be in effect, a corporate credit rating or a bank loan rating from Moody's or
S&P, or both, and the Applicable Utilization Fee Rate shall thereafter be based
on such ratings in the same manner as provided herein with respect to the
Borrower's senior unsecured long-term debt rating (with the Applicable
Utilization Fee Rate in effect prior to the issuance of such corporate credit
rating or bank loan rating being the same as the Applicable Utilization Fee Rate
in effect at the time the senior unsecured long-term debt rating ceases to be in
effect).

     "Application" means an application for a Letter of Credit as defined in
Section 2.13(b).

     "Assignment Agreement" means an agreement in substantially the form of

Exhibit 10.10 whereby a Lender conveys part or all of its Commitment, Loans and
-------------
participations in Letters of Credit to another Person that is, or thereupon
becomes, a Lender, or increases its Commitments, outstanding Loans and
outstanding participations in Letters of Credit, pursuant to Section 10.10.

     "Base Rate" means for any day the greater of:

          (i)  the fluctuating commercial loan rate announced by the
Administrative Agent from time to time at its Atlanta, Georgia office (or other
corresponding office, in the case of any successor Administrative Agent) as its
prime rate or base rate for U.S. Dollar loans in the United States of America in
effect on such day (which base rate may not be the lowest rate charged by

                                       4
<PAGE>

such Lender on loans to any of its customers), with any change in the Base Rate
resulting from a change in such announced rate to be effective on the date of
the relevant change; and

          (ii)   the sum of (x) the rate per annum (rounded upwards, if
necessary, to the nearest 1/16th of 1%) equal to the weighted average of the
rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the next Business Day, provided that (A)
if such day is not a Business Day, the rate on such transactions on the
immediately preceding Business Day as so published on the next Business Day
shall apply, and (B) if no such rate is published on such next Business Day, the
rate for such day shall be the average of the offered rates quoted to the
Administrative Agent by two (2) federal funds brokers of recognized standing on
such day for such transactions as selected by the Administrative Agent, plus (y)
a percentage per annum equal to one-half of one percent (1/2%) per annum.

     "Base Rate Loan" means a Loan bearing interest prior to maturity at the
rate specified in Section 2.7(a).

     "Borrower" means Transocean Sedco Forex Inc., a company organized under the
laws of the Cayman Islands, and its successors.

     "Borrowing" means any extension of credit of the same Type made by the
Lenders on the same date by way of Revolving Loans or a Competitive Loan or
group of Competitive Loans having a single Interest Period, or a Letter of
Credit, including any Borrowing advanced, continued or converted.  A Borrowing
is "advanced" on the day the Lenders advance funds comprising such Borrowing to
the Borrower or a Letter of Credit is issued, increased or extended, is
"continued" (in the case of Eurocurrency Revolving Loans) on the date a new
Interest Period commences for such Borrowing, and is "converted" (in the case of
Eurocurrency Revolving Loans) when such Borrowing is changed from one Type of
Loan to the other, all as requested by the Borrower pursuant to Section 2.3.

     "Borrowing Multiple" means, for any Loan, (i) in the case of a Borrowing
denominated in Dollars, $100,000, (ii) in the case of a Borrowing denominated in
Euros, E100,000, (iii) in the case of a Borrowing denominated in Pounds,
(Pounds)50,000, and (iv) in the case of a Borrowing denominated in Kroner,
1,000,000 Kroner.

     "Business Day" means any day other than a Saturday or Sunday on which banks
are not authorized or required to close in Atlanta, Georgia or New York, New
York and, if the applicable Business Day relates to the advance or continuation
of, conversion into, or payment on a Eurocurrency Borrowing or Competitive
Borrowing (i) in a currency other than Euros, on which banks are dealing in
Dollar, Pound or Kroner deposits, as applicable, in the applicable interbank
eurocurrency market in London, England, and in the country of issue of the
currency of such Eurocurrency Borrowing or Competitive Borrowing, and (ii) in
Euros, on which the TARGET payment system is open for the settlement of payments
in Euros.

     "Calculation Date" means the last Business Day of each calendar quarter.

                                       5
<PAGE>

     "Capitalized Lease Obligations" means, for any Person, the aggregate amount
of such Person's liabilities under all leases of real or personal property (or
any interest therein) which is required to be capitalized on the balance sheet
of such Person as determined in accordance with GAAP.

     "Cash Equivalents" means (i) securities issued or directly and fully
guaranteed or insured by the United States of America or any agency or
instrumentality thereof having maturities of not more than twelve (12) months
from the date of acquisition, (ii) time deposits and certificates of deposits
maturing within one year from the date of acquisition thereof or repurchase
agreements with financial institutions whose short-term unsecured debt rating is
A or above as obtained from either S&P or Moody's, (iii) commercial paper or
Eurocommercial paper with a rating of at least A-1 by S&P or at least P-1 by
Moody's, with maturities of not more than twelve (12) months from the date of
acquisition, (iv) repurchase obligations entered into with any Lender, or any
other Person whose short-term senior unsecured debt rating from S&P is at least
A-1 or from Moody's is at least P-1, which are secured by a fully perfected
security interest in any obligation of the type described in (i) above and has a
market value of the time such repurchase is entered into of not less than 100%
of the repurchase obligation of such Lender or such other Person thereunder, (v)
marketable direct obligations issued by any state of the United States of
America or any political subdivision of any such state or any public
instrumentality thereof maturing within twelve (12) months from the date of
acquisition thereof or providing for the resetting of the interest rate
applicable thereto not less often than annually and, at the time of acquisition,
having one of the two highest ratings obtainable from either S&P or Moody's, and
(vi) money market funds which have at least $1,000,000,000 in assets and which
invest primarily in securities of the types described in clauses (i) through (v)
above.

     "Class", when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are Revolving Loans or
Competitive Loans.

     "Code" means the Internal Revenue Code of 1986, as amended.

     "Collateral" means all property and assets of the Borrower in which the
Administrative Agent or the Collateral Agent is granted a Lien for the benefit
of the Lenders under the terms of Section 7.4.

     "Collateral Account" means the cash collateral account for outstanding
undrawn Letters of Credit defined in Section 7.4(b).

     "Collateral Agent" means STB acting in its capacity as collateral agent for
the Lenders, and any successor collateral agent appointed hereunder pursuant to
Section 9.7.

     "Commitment" means, relative to any Lender, such Lender's obligations to
make Revolving Loans and participate in Letters of Credit pursuant to Sections
2.1 and 2.13, initially in the amount and percentage set forth opposite its
signature hereto or pursuant to Section 10.10, as such obligations may be
reduced or increased from time to time as expressly provided pursuant to this
Agreement.

                                       6
<PAGE>

     "Commitment Termination Date" means the earliest of (i) December 29, 2005,
(ii) the date on which the Commitments are terminated in full or reduced to zero
pursuant to Section 2.14, and (iii) the occurrence of any Event of Default
described in Section 7.1(f) or (g) with respect to the Borrower or the
occurrence and continuance of any other Event of Default and either (x) the
declaration of the Loans to be due and payable pursuant to Section 7.2, or (y)
in the absence of such declaration, the giving of written notice by the
Administrative Agent, acting at the direction of the Required Lenders, to the
Borrower pursuant to Section 7.2 that the Commitments have been terminated.

     "Competitive Bid" means an offer by a Lender to make a Competitive Loan in
accordance with Section 2.4.

     Competitive Bid Rate" means, with respect to any Competitive Bid, the
Competitive Margin or the Competitive Fixed Rate, as applicable, offered by the
Lender making such Competitive Bid.

     "Competitive Bid Request" means a request by the Borrower for Competitive
Bids in accordance with Section 2.4.

     "Competitive Borrowing" means a Borrowing of a Competitive Loan or group of
Competitive Loans pursuant to Section 2.4.

     "Competitive Fixed Rate" means, with respect to any Competitive Loan (other
than a Competitive Margin Loan), the fixed rate of interest per annum specified
by the Lender making such Competitive Loan in its related Competitive Bid.

     "Competitive Fixed Rate Loan" means a Competitive Loan bearing interest at
a Competitive Fixed Rate.

     "Competitive Loan" means a Competitive Margin Loan or a Competitive Fixed
Rate Loan made pursuant to Section 2.4.

     "Competitive Margin" means, with respect to any Competitive Loan bearing
interest at a rate based on the LIBOR Rate, the marginal rate of interest, if
any, to be added to or subtracted from the LIBOR Rate to determine the rate of
interest applicable to such Loan, as specified by the Lender making such Loan in
its related Competitive Bid.

     "Competitive Margin Loan" means a Competitive Loan bearing interest
determined by reference to the LIBOR Rate and a Competitive Margin.

     "Compliance Certificate" means a certificate in the form of Exhibit 6.6.
                                                                 -----------

     "Confidential Information Memorandum" shall mean the Confidential
Information Memorandum of the Borrower dated October 2000, as the same may be
amended, restated and supplemented from time to time and distributed to the
Lenders prior to the Effective Date.

                                       7
<PAGE>

     "Consolidated EBITDA" means, for any period, for the Borrower and its
Subsidiaries, the sum of (a) net income or net loss (before discontinued
operations and income or loss resulting from extraordinary items), plus (b) the
sum of (i) Consolidated Interest Expense, (ii) income tax expense, (iii)
depreciation expense, (iv) amortization expense, and (v) other non-cash charges,
all determined in accordance with GAAP on a consolidated basis for the Borrower
and its Subsidiaries (excluding, in the case of the foregoing clauses (a) and
(b), any net income or net loss and expenses and charges of any SPVs or other
Persons that are not Subsidiaries), plus (c) dividends or distributions received
during such period by the Borrower and its Subsidiaries from SPVs and any other
Persons that are not Subsidiaries.  For purposes of the foregoing, Consolidated
EBITDA for the Borrower and its Subsidiaries shall not include any such amounts
attributable to any Subsidiary or business acquired during such period by the
Borrower or any Subsidiary to the extent such amounts relate to any period prior
to the acquisition thereof.

     "Consolidated Indebtedness" means all Indebtedness of the Borrower and its
Subsidiaries that would be reflected on a consolidated balance sheet of such
Persons prepared in accordance with GAAP.

     "Consolidated Indebtedness to Total Capitalization Ratio" means, at any
time, the ratio of Consolidated Indebtedness at such time to Total
Capitalization at such time.

     "Consolidated Interest Expense" means, for any period, total interest
expense of the Borrower and its Subsidiaries on a consolidated basis for such
period, in connection with Indebtedness, all as determined in accordance with
GAAP, but excluding capitalized interest expense and interest expense
attributable to expected federal income tax settlements.  For purposes of the
foregoing, Consolidated Interest Expense for the Borrower and its Subsidiaries
shall not include any such interest expense attributable to any Subsidiary or
business acquired during such period by the Borrower or any Subsidiary to the
extent such interest expense relates to any period prior to the acquisition
thereof.

     "Consolidated Net Assets" means, as of any date of determination, an amount
equal to the aggregate book value of the assets of the Borrower, its
Subsidiaries and, to the extent of the equity interest of the Borrower and its
Subsidiaries therein, SPVs at such time, minus the current liabilities of the
Borrower and its Subsidiaries, all as determined on a consolidated basis in
accordance with GAAP.

     "Consolidated Net Worth" means, as of any date of determination,
consolidated shareholders equity of the Borrower and its Subsidiaries determined
in accordance with GAAP (but excluding the effect on shareholders equity of
cumulative foreign exchange translation adjustments).  For purposes of this
definition, SPVs shall be accounted for pursuant to the equity method of
accounting.

     "Controlling Affiliate" means for the Borrower, (i) any other Person that
directly or indirectly through one or more intermediaries controls, or is under
common control with, the Borrower (other than Persons controlled by the
Borrower), and (ii) any other Person owning beneficially or controlling ten
percent (10%) or more of the equity interests in the Borrower.  As used in this
definition, "control" means the power, directly or indirectly, to direct or
cause the

                                       8
<PAGE>

direction of management or policies of a Person (through ownership of voting
securities or other equity interests, by contract or otherwise).

     "Credit Documents" means this Agreement, the Notes, the Applications, the
Letters of Credit, and any Subsidiary Guaranties in effect from time to time.

     "Default" means any event or condition the occurrence of which would, with
the passage of time or the giving of notice, or both, constitute an Event of
Default.

     "Documentation Agent" shall mean Bank of America, N.A., in its capacity as
documentation agent for the Lenders, and any successor Documentation Agent
appointed pursuant to Section 9.7; provided, however, that no such Documentation
Agent shall have any duties, responsibilities, or obligations hereunder in such
capacity.

     "Dollar" and "U.S. Dollar" and the sign "$" mean lawful money of the United
States of America.

     "Dollar Equivalent" means, on any date of determination, (i) with respect
to any amount in Dollars, such amount, and (ii) with respect to any amount in
any currency other than U.S. Dollars, the equivalent in Dollars of such amount,
determined by the Administrative Agent pursuant to Section 10.19 using the
applicable Exchange Rate with respect to such currency at the time in effect
under the provisions of such Section.

     "Effective Date" means the date this Agreement shall become effective as
defined in Section 10.16.

     "Environmental Claims" means any and all administrative, regulatory or
judicial actions, suits, demands, demand letters, claims, liens, notices of non-
compliance or violation, investigations or proceedings relating to any
Environmental Law ("Claims") or any permit issued under any Environmental Law,
including, without limitation, (i) any and all Claims by governmental or
regulatory authorities for enforcement, cleanup, removal, response, remedial or
other actions or damages pursuant to any applicable Environmental Law, and (ii)
any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief resulting from
Hazardous Materials or arising from alleged injury or threat of injury to the
environment.

     "Environmental Law" means any federal, state or local statute, law, rule,
regulation, ordinance, code, policy or rule of common law now or hereafter in
effect, including any judicial or administrative order, consent, decree or
judgment, relating to the environment.

     "EMU Legislation" means the legislative measures of the European Union for
the introduction of, changeover to or operation of the Euro in one or more
member states.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

                                       9
<PAGE>

     "Euro" or "E" means the single currency of the European Union as
constituted by the Treaty on European Union and as referred to in the EMU
Legislation for the introduction of, changeover to or operation of the Euro in
one or more member states.

     "Eurocurrency", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, shall bear interest
at a rate determined by reference to (i) in the case of a Revolving Loan or
Revolving Borrowing, Adjusted LIBOR and the Applicable Margin, or (ii) in the
case of a Competitive Loan or Competitive Borrowing, the LIBOR Rate and the
Competitive Margin.

     "Eurocurrency Loan" means a Eurocurrency Revolving Loan or a Competitive
Margin Loan, as the case may be.

     "Eurocurrency Revolving Loan" means a Revolving Loan bearing interest
before maturity at the rate specified in Section 2.7(b).

     "Event of Default" means any of the events or circumstances specified in
Section 7.1.

     "Exchange Rate" means on any day, with respect to Euros, Pounds, or Kroner,
the offered rate at which such currency may be exchanged into Dollars, as set
forth at approximately 11:00 a.m. on such day on the Reuters NFX Page (or
comparable page on the Telerate or Bloomberg Service) for such currency.  In the
event that such rate does not appear on the applicable page of any such
services, the Exchange Rate shall be determined by reference to such other
publicly available services for displaying exchange rates as may be agreed upon
by the Administrative Agent and the Borrower, or, in the absence of such
agreement, such Exchange Rate shall instead be the offered spot rate of exchange
of the Administrative Agent or, if the Administrative Agent shall so determine,
one of its affiliates in the market where its foreign currency exchange
operations in respect of such currency are then being conducted, at or about
10:00 a.m., local time, on such date for the purchase of Dollars for delivery
two Business Days later; provided that if at the time of any such determination,
for any reason, no such spot rate is being quoted, the Administrative Agent,
after consultation with the Borrower, may use any reasonable method it deems
appropriate to determine such rate, and such determination shall be conclusive
absent manifest error.

     "Foreign Currency Payment Accounts" means those bank accounts specified on
Schedule 1.1 for receipt of payments, both from the Lenders and the Borrower, in
------------
Euros, Pounds and Kroner, as specified on Schedule 1.1, or such other bank
                                          ------------
accounts as may hereafter be specified by the Administrative Agent in writing to
the Borrower and the Lenders as being the applicable bank accounts for receipt
of payments in such currencies.

     "Foreign Currency Sublimit" means $200,000,000, as such amount may be
reduced from time to time pursuant to the terms of this Agreement.

     "Foreign Plan" means any pension, profit sharing, deferred compensation, or
other employee benefit plan, program or arrangement maintained by any foreign
Subsidiary of the Borrower which, under applicable local law, is required to be
funded through a trust or other

                                       10
<PAGE>

funding vehicle, but shall not include any benefit provided by a foreign
government or its agencies.

     "GAAP" means generally accepted accounting principles from time to time in
effect as set forth in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants and
the statements and pronouncements of the Financial Accounting Standards Board or
in such other statements, opinions and pronouncements by such other entity as
may be approved by a significant segment of the U.S. accounting profession.

     "Governmental Authority" means the government of the United States of
America, any other nation or any political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

     "Guarantor" means any Subsidiary of the Borrower required to execute and
deliver a Subsidiary Guaranty hereunder pursuant to Section 6.11, in each case
unless and until the relevant Subsidiary Guaranty is released pursuant to
Section 6.11.

     "Guaranty" by any Person means all contractual obligations (other than
endorsements in the ordinary course of business of negotiable instruments for
deposit or collection or similar transactions in the ordinary course of
business) of such Person guaranteeing any Indebtedness of any other Person (the
"primary obligor") in any manner, whether directly or indirectly, including,
without limitation, all obligations incurred through an agreement, contingent or
otherwise, by such Person: (i) to purchase such Indebtedness or to purchase any
property or assets constituting security therefor, primarily for the purpose of
assuring the owner of such Indebtedness of the ability of the primary obligor to
make payment of such Indebtedness; or (ii) to advance or supply funds (x) for
the purchase or payment of such Indebtedness, or (y) to maintain working capital
or other balance sheet condition, or otherwise to advance or make available
funds for the purchase or payment of such Indebtedness, in each case primarily
for the purpose of assuring the owner of such Indebtedness of the ability of the
primary obligor to make payment of such Indebtedness; or (iii) to lease
property, or to purchase securities or other property or services, of the
primary obligor, primarily for the purpose of assuring the owner of such
Indebtedness of the ability of the primary obligor to make payment of such
Indebtedness; or (iv) otherwise to assure the owner of such Indebtedness of the
primary obligor against loss in respect thereof.  For the purpose of all
computations made under this Agreement, the amount of a Guaranty in respect of
any Indebtedness shall be deemed to be equal to the amount that would apply if
such Indebtedness was the direct obligation of such Person rather than the
primary obligor or, if less, the maximum aggregate potential liability of such
Person under the terms of the Guaranty.

     "Hazardous Material" shall have the meaning assigned to that term in the
Comprehensive Environmental Response Compensation and Liability Act of 1980, as
amended by the Superfund Amendments and Reauthorization Acts of 1986, and shall
also include petroleum, including crude oil or any fraction thereof, or any
other substance defined as

                                       11
<PAGE>

"hazardous" or "toxic" or words with similar meaning and effect under any
Environmental Law applicable to the Borrower or any of its Subsidiaries.

     "Highest Lawful Rate" means the maximum nonusurious interest rate, if any,
that any time or from time to time may be contracted for, taken, reserved,
charged or received on any Loans, under laws applicable to any of the Lenders
which are presently in effect or, to the extent allowed by applicable law, under
such laws which may hereafter be in effect and which allow a higher maximum
nonusurious interest rate than applicable laws now allow.  Determination of the
rate of interest for the purpose of determining whether any Loans are usurious
under all applicable laws shall be made by amortizing, prorating, allocating,
and spreading, in equal parts during the period of the full stated term of the
Loans, all interest at any time contracted for, taken, reserved, charged or
received from the Borrower in connection with the Loans.

     "Indebtedness" means, for any Person, the following obligations of such
Person, without duplication:  (i) obligations of such Person for borrowed money;
(ii) obligations of such Person representing the deferred purchase price of
property or services other than accounts payable and accrued liabilities arising
in the ordinary course of business and other than amounts which are being
contested in good faith and for which reserves in conformity with GAAP have been
provided; (iii) obligations of such Person evidenced by bonds, notes, bankers
acceptances, debentures or other similar instruments of such Person, or
obligations of such Person arising, whether absolute or contingent, out of
letters of credit issued for such Person's account or pursuant to such Person's
application securing Indebtedness; (iv) obligations of other Persons, whether or
not assumed, secured by Liens (other than Permitted Liens) upon property or
payable out of the proceeds or production from property now or hereafter owned
or acquired by such Person, but only to the extent of such property's fair
market value; (v) Capitalized Lease Obligations of such Person; (vi) obligations
under Interest Rate Protection Agreements, and (vii) obligations of such Person
pursuant to a Guaranty of any of the foregoing obligations of another Person;
provided, however, Indebtedness shall exclude Non-recourse Debt.  For purposes
of this Agreement, the Indebtedness of any Person shall include the Indebtedness
of any partnership or joint venture to the extent such Indebtedness is recourse
to such Person.

     "Initial Availability Date" means the date on which the conditions
specified in Section 4.1 are satisfied (or waived in accordance with Section
10.11).

     "Interest Coverage Ratio" means, as of the end of any fiscal quarter, the
ratio of (i) Consolidated EBITDA for the four fiscal quarter period then ended,
minus all cash dividends paid to shareholders of the Borrower, or to holders of
preferred shares or other preferred equity interests issued by any Subsidiaries
of the Borrower where such holders are Persons other than the Borrower or any of
its Subsidiaries, during such four fiscal quarter period, and all cash income
taxes paid during such four fiscal quarter period, to (ii) Consolidated Interest
Expense for the four fiscal quarter period then ended.

     "Interest Payment Date" means (a) with respect to any Base Rate Loan, the
last day of each March, June, September and December, (b) with respect to any
Eurocurrency Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurocurrency
Borrowing with an Interest Period of more than three months' duration,

                                       12
<PAGE>

each day prior to the last day of such Interest Period that occurs at intervals
of three months' duration after the first day of such Interest Period, and (c)
with respect to any Competitive Fixed Rate Loan, the last day of the Interest
Period applicable to the Borrowing of which such Loan is a part and, in the case
of a Competitive Fixed Rate Borrowing with an Interest Period of more than 90
days' duration (unless otherwise specified in the applicable Competitive Bid
Request), each day prior to the last day of such Interest Period that occurs at
intervals of 90 days' duration after the first day of such Interest Period, and
any other dates that are specified in the applicable Competitive Bid Request as
Interest Payment Dates with respect to such Borrowing.

     "Interest Period" means (a) with respect to any Eurocurrency Borrowing, the
period commencing on the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three or six months
(or with the consent of each Lender making a Loan as part of such Borrowing, any
other period) thereafter, as the Borrower may elect, and (b) with respect to any
Competitive Fixed Rate Borrowing, the period (which shall not be less than 7
days or more than 360 days) commencing on the date of such Borrowing and ending
on the date specified in the applicable Competitive Bid Request.  For purposes
hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and, in the case of a Revolving Borrowing, thereafter shall be
the effective date of the most recent conversion or continuation of such
Borrowing.

     "Interest Rate Protection Agreement" shall mean any interest rate swap,
interest rate cap, interest rate collar, or other interest rate hedging
agreement or arrangement designed to protect against fluctuations in interest
rates.

     "Issuing Bank" is defined in the preamble.

     "Kroner" means lawful money of the Kingdom of Norway.

     "L/C Documents" means the Letters of Credit, any Issuance Requests and
Applications with respect thereto, any draft or other document presented in
connection with a drawing thereunder, and this Agreement.

     "L/C Obligations" means the undrawn face amounts of all outstanding Letters
of Credit and all unpaid Reimbursement Obligations.

     "Lead Arranger" means SunTrust Equitable Securities Corporation, acting in
its capacity as lead arranger and book runner for the credit facilities
described in this Agreement.

     "Lender" is defined in the preamble.

     "Lending Office" means the branch, office or affiliate of a Lender
specified on the appropriate signature page hereof, or designated pursuant to
Sections 8.4 or 10.10, as the office through which it will make its Loans
hereunder for each type of Loan available hereunder.

     "Letter of Credit" means any of the letters of credit to be issued by the
Issuing Bank for the account of the Borrower pursuant to Section 2.13(a).

                                       13
<PAGE>

     "LIBOR Rate" means, relative to any Interest Period for each Eurocurrency
Borrowing in any applicable currency, the rate per annum quoted at or about
11:00 a.m. (London, England time) two Business Days before the commencement of
such Interest Period on that page of the Reuters, Telerate or Bloombergs
reporting service (as then being used by the Administrative Agent to obtain such
interest rate quotes) that displays British Bankers' Association interest
settlement rates for deposits in the applicable currency of such Eurocurrency
Borrowing, or if such page or such service shall cease to be available, such
other page or other service (as the case may be) for the purpose of displaying
British Bankers' Association interest settlement rates as reasonably determined
by the Administrative Agent upon advising the Borrower as to the use of any such
other service.  If for any reason any such settlement interest rate for such
Interest Period is not available to the Administrative Agent through any such
interest rate reporting service, then the "LIBOR Rate" with respect to such
Eurocurrency Borrowing will be the rate at which the Administrative Agent is
offered deposits for such applicable currency in the Dollar Equivalent of
$5,000,000 for a period approximately equal to such Interest Period in the
London interbank market at 10:00 a.m. two Business Days before the commencement
of such Interest Period.

     "Lien" means any interest in any property or asset in favor of a Person
other than the owner of such property or asset and securing an obligation owed
to, or a claim by, such Person, whether such interest is based on the common
law, statute or contract, including, but not limited to, the security interest
lien arising from a mortgage, encumbrance, pledge, conditional sale, security
agreement or trust receipt, or a lease, consignment or bailment for security
purposes.

     "Loan" means (i) a Base Rate Loan, (ii) a Eurocurrency Revolving Loan,
(iii) a Competitive Margin Loan, or (iv) a Competitive Fixed Rate Loan, as the
case may be, and "Loans" means two or more of any such Loans.

     "Material Adverse Effect" means a material adverse effect on (i) the
business, assets, operations or condition of the Borrower and its Subsidiaries
taken as a whole, or (ii) the Borrower's ability to perform any of its payment
obligations under the Agreement or the Notes, or in respect of the Letters of
Credit.

     "Maturity Date" means the earlier of (i) December 29, 2005, and (ii) the
date on which the Loans have become due and payable pursuant to Section 7.2 or
7.3.

     "Moody's" means Moody's Investors Service, Inc., or any successor thereto.

     "Non-recourse Debt" means with respect to any Person (i) obligations of
such Person against which the obligee has no recourse to such Person except as
to certain named or described present or future assets or interests of such
Person, and (ii) the obligations of SPVs to the extent the obligee thereof has
no recourse to the Borrower or any of its Subsidiaries, except as to certain
specified present or future assets or interests of SPVs.

     "Note" means any of the promissory notes of the Borrower defined in Section
2.9.

                                       14
<PAGE>

     "Obligations" means all obligations of the Borrower to pay fees, costs and
expenses hereunder, to pay principal or interest on Loans and Reimbursement
Obligations and to pay any other obligations to the Administrative Agent or any
Lender or Issuing Bank arising under any Credit Document.

     "PBGC" means the Pension Benefit Guaranty Corporation or any successor
thereto.

     "Percentage" means, for each Lender, the percentage of the Commitments
represented by such Lender's Commitment; provided, that, if the Commitments are
terminated, each Lender's Percentage shall be calculated based on its Commitment
in effect immediately before such termination, subject to any assignments by
such Lender of Obligations pursuant to Section 10.10.

     "Performance Guaranties" means all Guaranties of the Borrower or any of its
Subsidiaries delivered in connection with the construction financing of drill
ships, offshore mobile drilling units or offshore drilling rigs for which firm
drilling contracts have been obtained by the Borrower, any of its Subsidiaries
or a SPV.

     "Performance Letters of Credit" means all letters of credit for the account
of the Borrower, any Subsidiary or a SPV issued as support for Non-recourse Debt
or a Performance Guaranty.

     "Permitted Business" has the meaning ascribed to such term in Section 6.8.

     "Permitted Liens" means the Liens permitted as described in Section 6.10.

     "Person" means an individual, partnership, corporation, limited liability
company, association, trust, unincorporated organization or any other entity or
organization, including a government or any agency or political subdivision
thereof.

     "Plan" means an employee pension benefit plan covered by Title IV of ERISA
or subject to the minimum funding standards under Section 412 of the Code that
is either (i) maintained by the Borrower or any of its Subsidiaries, or (ii)
maintained pursuant to a collective bargaining agreement or any other
arrangement under which more than one employer makes contributions and to which
the Borrower or any of its Subsidiaries is then making or accruing an obligation
to make contributions or has within the preceding five (5) plan years made or
had an obligation to make contributions.

     "Pounds" means British Pounds Sterling.

     "R&B Falcon" means R&B Falcon Corporation, a Delaware corporation.

     "Reimbursement Obligations" has the meaning ascribed to such term in
Section 2.13(c).

     "Required Lenders" means, at any time, Lenders having Revolving Credit
Exposures and unused Commitments representing more than 50% of the sum of the
total Revolving Credit Exposures and unused Commitments at such time; provided
that, for purposes of declaring the

                                       15
<PAGE>

Loans to be due and payable pursuant to Article 7, and for all purposes after
the Loans become due and payable pursuant to Article 7 or the Commitments expire
or terminate, the outstanding Competitive Loans of the Lenders shall be included
in their respective Revolving Credit Exposures in determining the Required
Lenders.

     "Reset Date" has the meaning assigned to such term in Section 10.19.

     "Revolving Credit" means the credit facility for making Revolving Loans and
issuing Letters of Credit described in Sections 2.1 and 2.13.

     "Revolving Credit Commitment Amount" means an amount equal to $550,000,000,
as such amount may be reduced from time to time pursuant to the terms of this
Agreement.

     "Revolving Credit Exposure" means, with respect to any Lender at any time,
the sum at such time, without duplication, of (i) such Lender's applicable
Percentage of the Dollar Equivalent of the principal amounts of the outstanding
Revolving Loans, and (ii) such Lender's applicable Percentage of the Dollar
Equivalent of the aggregate outstanding L/C Obligations.

     "Revolving Loan" means the revolving loans defined in Section 2.1.

     "Revolving Notes" means certain promissory notes of the Borrower as defined
in Section 2.9.

     "Revolving Obligations" means the sum of the Dollar Equivalent of the
principal amount of all Revolving Loans and L/C Obligations outstanding.

     "Sale-Leaseback Transaction" means any arrangement whereby the Borrower or
a Subsidiary shall sell or transfer any property, real or personal, used or
useful in its business, whether now owned or hereafter acquired, and thereafter
rent or lease property that it intends to use for substantially the same purpose
or purposes as the property sold or transferred.

     "Senior Managing Agent" means Wells Fargo Bank Texas, National Association
in its capacity as senior managing agent for the Lenders, and any successor
Senior Managing Agent appointed pursuant to Section 9.7; provided, however, that
the Senior Managing Agent shall have no duties, responsibilities, or obligations
hereunder in such capacity.

     "S&P" means Standard & Poor's Ratings Group or any successor thereto.

     "SPV" means any Person that is designated by the Borrower as a SPV,
provided that the Borrower shall not designate as a SPV any Subsidiary that
owns, directly or indirectly, any other Subsidiary that has total assets
(including assets of any Subsidiaries of such other Subsidiary, but excluding
any assets that would be eliminated in consolidation with the Borrower and its
Subsidiaries) which equates to at least five percent (5%) of the Borrower's
Total Assets, or that had net income (including net income of any Subsidiaries
of such other Subsidiary, all before discontinued operations and income or loss
resulting from extraordinary items, all determined in accordance with GAAP, but
excluding revenues and expenses that would be eliminated in

                                       16
<PAGE>

consolidation with the Borrower and its Subsidiaries) during the most recently
completed fiscal year of the Borrower in excess of the greater of (i)
$1,000,000, and (ii) fifteen percent (15%) of the net income (before
discontinued operations and income or loss resulting from extraordinary items)
for the Borrower and its Subsidiaries, all as determined on a consolidated basis
in accordance with GAAP during such fiscal year of the Borrower. The Borrower
may elect to treat any Subsidiary as a SPV (provided such Subsidiary would
otherwise qualify as such), and may rescind any such prior election, by giving
written notice thereof to the Administrative Agent specifying the name of such
Subsidiary or SPV, as the case may be, and the effective date of such election,
which shall be a date within sixty (60) days after the date such notice is
given. The election to treat a particular Person as a SPV may only be made once.

     "Significant Subsidiary" has the meaning ascribed to it under Regulation S-
X promulgated under the Securities Exchange Act of 1934, as amended.

     "Statutory Reserve Rate" means, with respect to any currency, a fraction
(expressed as a decimal), the numerator of which is the number 1 and the
denominator of which is the number 1 minus the aggregate of the maximum reserve,
liquid asset or similar percentages (including any marginal, special, emergency
or supplemental reserves) expressed as a decimal established by any Governmental
Authority of the United States or of the jurisdiction of such currency or any
jurisdiction in which Loans in such currency are made to which banks in such
jurisdiction are subject for any category of deposits or liabilities customarily
used to fund loans in such currency or by reference to which interest rates
applicable to loans in such currency are determined.  Such reserve, liquid asset
or similar percentages shall include those imposed pursuant to Regulation D of
the Board of Governors of the Federal Reserve System.  Eurocurrency Loans shall
be deemed to be subject to such reserve requirements without benefit of or
credit for proration, exemptions or offsets that may be available from time to
time to any Lender under Regulation D or any other applicable law, rule or
regulation.  The Statutory Reserve Rate shall be adjusted automatically on and
as of the effective date of any change in any reserve percentage.

     "Subsidiary" means, for any Person, any other Person (other than, except in
the context of Section 6.6(a), a SPV) of which more than fifty percent (50%) of
the outstanding stock or comparable equity interests having ordinary voting
power for the election of the board of directors of such corporation, any
managers of such limited liability company or similar governing body
(irrespective of whether or not at the time stock or other equity interests of
any other class or classes of such corporation or other entity shall have or
might have voting power by reason of the happening of any contingency), is at
the time directly or indirectly owned by such former Person or by one or more of
its Subsidiaries.

     "Subsidiary Debt Basket Amount" has the meaning ascribed to such term in
Section 6.11(i).

     "Subsidiary Guaranty" means any Guaranty of any Subsidiary delivered
pursuant to Section 6.11(j).

     "Syndication Agent" shall mean ABN AMRO Bank, N.V., acting in its capacity
as syndication agent for the Lenders, and any successor Syndication Agent
appointed hereunder

                                       17
<PAGE>

pursuant to Section 9.7; provided, however, that no such Syndication Agent shall
have any duties, responsibilities, or obligations hereunder in such capacity.

     "TARGET" means the Trans-European Automated Real-Time Gross Settlement
Express Transfer system.

     "Taxes" has the meaning set forth in Section 5.12.

     "364-Day Credit Agreement" means the 364-Day Credit Agreement dated as of
December 29, 2000, among the Borrower, the Lenders, the Administrative Agent,
the Syndication Agent, the Documentation Agent and the Senior Managing Agent, as
the same may be amended, supplemented and restated from time to time.

     "Total Assets" means, as of any date of determination, the aggregate book
value of the assets of the Borrower and its Subsidiaries determined on a
consolidated basis in accordance with GAAP as of such date.

     "Total Capitalization" means, as of any date of determination, the sum of
Consolidated Indebtedness plus Consolidated Net Worth as of such date.

     "Transocean R&B Falcon Joint Proxy Statement" means the joint proxy
statement/prospectus of the Borrower and R&B Falcon dated November 3, 2000, as
the same may be amended or supplemented from time to time.

     "Transocean/ABN Revolving Credit Facility" the Credit Agreement dated as of
July 30, 1996, among the Borrower (formerly Transocean Offshore Inc.), ABN AMRO
Bank N.V., Houston Agency, as Agent, and the lenders parties thereto, as such
Credit Agreement has been amended and is in effect as of the Effective Date.

     "Type", when used in reference to any Loan or Borrowing, refers to whether
the rate of interest on such Loan, or on the Loans comprising such Borrowing, is
determined by reference to Adjusted LIBOR or the Base Rate (in the case of a
Revolving Loan or Borrowing), or the LIBOR Rate or a Competitive Fixed Rate (in
the case of a Competitive Loan or Borrowing).

     "Unfunded Vested Liabilities" means, for any Plan at any time, the amount
(if any) by which the present value of all vested nonforfeitable accrued
benefits under such Plan exceeds the fair market value of all Plan assets
allocable to such benefits, determined as of the then most recent valuation date
for such Plan, but only to the extent that such excess represents a potential
liability of the Borrower or any of its Subsidiaries to the PBGC or such Plan.

     Section 1.2.   Time of Day.  Unless otherwise expressly provided, all
                    -----------
references to time of day in this Agreement and the other Credit Documents shall
be references to New York, New York time.

                                       18
<PAGE>

     Section 1.3.  Accounting Terms; GAAP.  Except as otherwise expressly
                   ----------------------
provided herein, and subject to the provisions of Section 10.20, all terms of an
accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time.

ARTICLE 2.  THE CREDIT FACILITIES.

     Section 2.1.  Commitments for Revolving Loans.  Subject to the terms and
                   -------------------------------
conditions hereof, each Lender severally and not jointly agrees to make one or
more loans (each a "Revolving Loan") to the Borrower from time to time before
the Commitment Termination Date on a revolving basis in an aggregate amount not
to exceed at any time outstanding an amount equal to its Commitment, subject to
any reductions thereof pursuant to the terms of this Agreement; provided,
however, that no Lender shall be permitted or required to make any Revolving
Loan if, after giving effect thereto, (i) the Dollar Equivalent of the aggregate
principal amount of the Revolving Loans, the Competitive Loans and the L/C
Obligations of all Lenders (determined in accordance with Section 10.19) would
thereby exceed the Revolving Credit Commitment Amount then in effect; or (ii)
the Dollar Equivalent of the Revolving Credit Exposure of such Lender
(determined in accordance with Section 10.19) would thereby exceed its
Commitment then in effect.  Each Borrowing of Revolving Loans shall be made
ratably from the Lenders in proportion to their respective Percentages.
Revolving Loans may be repaid, in whole or in part, and all or any portion of
the principal amount thereof reborrowed, before the Commitment Termination Date,
subject to the terms and conditions hereof.  Funding of any Revolving Loans
shall be in any combination of Dollars, Euros, Pounds or Kroner as specified by
the Borrower as set forth in Section 2.3; provided, that the Dollar Equivalent
amount of outstanding Revolving Loans, Competitive Loans, and L/C Obligations
funded and issued in Euros, Pounds and Kroner determined, with respect to such
Revolving Loans, Competitive Loans, and L/C Obligations in accordance with
Section 10.19 shall at no time exceed the Foreign Currency Sublimit then in
effect.

     Section 2.2.  Types of Revolving Loans and Minimum Borrowing Amounts.
                   ------------------------------------------------------
Borrowings of Revolving Loans may be outstanding as either Base Rate Loans or
Adjusted LIBOR Loans, as selected by the Borrower pursuant to Section 2.3;
provided, however, that any Revolving Loans funded in Euros, Pounds or Kroner
may only be outstanding as Adjusted LIBOR Loans.  Each Borrowing of Base Rate
Loans shall be in an amount of not less than $1,000,000 and each Borrowing of
Adjusted LIBOR Loans shall be in an amount of not less than the Dollar
Equivalent of $5,000,000 and in an integral multiple of the Borrowing Multiple.

     Section 2.3.  Manner of Revolving Borrowings.
                   ------------------------------

     (a)  Notice to Administrative Agent.  The Borrower shall give notice to the
          ------------------------------
Administrative Agent by no later than 12:00 p.m. (i) at least three (3) Business
Days before the date on which the Borrower requests the Lenders to advance a
Borrowing of Eurocurrency Revolving Loans to be funded in Dollars and at least
four (4) Business Days before the date on which the Borrower requests the
Lenders to advance a Borrowing of Eurocurrency Revolving Loans to be funded in
Euros, Pounds or Kroner, and (ii) on the date the Borrower requests the Lenders
to advance a Borrowing of Base Rate Loans, in each case pursuant to a duly
executed Borrowing Request substantially in the form of Exhibit 2.3 (each a
                                                        -----------
"Revolver Borrowing

                                       19
<PAGE>

Request"). The Loans included in each Revolving Borrowing shall bear interest
initially at the type of rate specified in the Revolver Borrowing Request with
respect to such Borrowing. Thereafter, the Borrower may from time to time elect
to change or continue the type of interest rate borne by each Borrowing or,
subject to the minimum amount requirement in Section 2.2 for each outstanding
Borrowing, a portion thereof, as follows: (i) if such Borrowing is of
Eurocurrency Revolving Loans, the Borrower may continue part or all of such
Borrowing as Eurocurrency Revolving Loans for an Interest Period specified by
the Borrower or convert part or all of such Borrowing into Base Rate Loans on
the last day of the Interest Period applicable thereto, or the Borrower may
earlier convert part or all of such Borrowing into Base Rate Loans so long as it
pays the breakage fees and funding losses provided in Section 2.12; and (ii) if
such Borrowing is of Base Rate Loans, the Borrower may convert all or part of
such Borrowing into Eurocurrency Revolving Loans for an Interest Period
specified by the Borrower on any Business Day, in each case pursuant to notices
of continuation or conversion as set forth below. The Borrower may select
multiple Interest Periods for the Eurocurrency Revolving Loans constituting any
particular Borrowing, provided that at no time shall the number of different
Interest Periods for outstanding Eurocurrency Revolving Loans exceed twenty (20)
(it being understood for such purposes that (x) Interest Periods of the same
duration, but commencing on different dates, shall be counted as different
Interest Periods, and (y) all Interest Periods commencing on the same date and
of the same duration and currency shall be counted as one Interest Period
regardless of the number of Borrowings or Loans involved. Notices of the
continuation of Eurocurrency Revolving Loans for an additional Interest Period
or of the conversion of part or all of Eurocurrency Revolving Loans into Base
Rate Loans or of Base Rate Loans into Eurocurrency Revolving Loans must be given
by no later than 12:00 p.m. at least three (3) Business Days with respect to
Eurocurrency Revolving Loans funded in Dollars and four (4) Business Days with
respect to Eurocurrency Revolving Loans funded in Euros, Pounds or Kroner,
before the date of the requested continuation or conversion. The Borrower shall
give such notices concerning the advance, continuation, or conversion of a
Borrowing by telephone or facsimile (which notice shall be irrevocable once
given and, if by telephone, shall be promptly confirmed in writing) pursuant to
a Revolver Borrowing Request which shall specify the date of the requested
advance, continuation or conversion (which shall be a Business Day), the amount
and currency of the requested Borrowing, whether such Borrowing is to be
advanced, continued, or converted, the type of Loans to comprise such new,
continued or converted Borrowing and, if such Borrowing is to be comprised of
Eurocurrency Revolving Loans, the Interest Period applicable thereto. The
Borrower agrees that the Administrative Agent may rely on any such telephonic or
facsimile notice given by any Person it in good faith believes is an authorized
representative of the Borrower without the necessity of independent
investigation and that, if any such notice by telephone conflicts with any
written confirmation, such telephonic notice shall govern if the Administrative
Agent has acted in reliance thereon.

     (b)  Notice to the Lenders.  The Administrative Agent shall give prompt
          ---------------------
telephonic, telex or facsimile notice to each Lender of any notice received
pursuant to Section 2.3(a) relating to a Revolving Borrowing. The Administrative
Agent shall give notice to the Borrower and each Lender by like means of the
interest rate applicable to each Borrowing of Eurocurrency Revolving Loans (but,
if such notice is given by telephone, the Administrative Agent shall confirm
such rate in writing) promptly after the Administrative Agent has made such
determination.

                                       20
<PAGE>

     (c)  Borrower's Failure to Notify.  If the Borrower fails to give notice
          ----------------------------
pursuant to Section 2.3(a) of (i) the continuation or conversion of any
outstanding principal amount of a Borrowing of Eurocurrency Revolving Loans, or
(ii) a Borrowing of Revolving Loans to pay outstanding Reimbursement
Obligations, and has not notified the Administrative Agent by 12:00 p.m. at
least three (3) Business Days before the last day of the Interest Period for any
Borrowing of Eurocurrency Revolving Loans funded in Dollars or at least four (4)
Business Days before the last day of the Interest Period for any Borrowing of
Eurocurrency Revolving Loans funded in Euros, Pounds or Kroner, or by the day
such Reimbursement Obligation becomes due, as the case may be, that it intends
to repay such Borrowing or Reimbursement Obligation, the Borrower shall be
deemed to have requested, as applicable, (x) the continuation of such Borrowing
as a Eurocurrency Revolving Loan with an Interest Period of one (1) month or (y)
the advance of a new Borrowing of Base Rate Loans (after converting, if
necessary, the Reimbursement Obligation into Dollars as provided in Section
10.19) on such day in the amount of the Reimbursement Obligation then due, which
Borrowing pursuant to this clause (y) shall be deemed to have been funded on
such date by the Lenders in accordance with Section 2.3(a) and to have been
applied on such day to pay the Reimbursement Obligation then due, in each case
so long as no Event of Default shall have occurred and be continuing or would
occur as a result of such Borrowing but otherwise disregarding the conditions to
Borrowings set forth in Section 4.2. Upon the occurrence and during the
continuance of any Event of Default, (i) each Eurocurrency Revolving Loan will
automatically, on the last day of the then existing Interest Period therefor,
convert into a Base Rate Loan, and (ii) the obligation of the Lenders to fund
Loans in Euros, Pounds or Kroner, and to make, continue or convert Loans into
Eurocurrency Revolving Loans shall be suspended.

     (d)  Conversion.  If the Borrower shall elect to convert any particular
          ----------
Borrowing from one Type of Loan to the other only in part, then, from and after
the date on which such conversion shall be effective, such particular Borrowing
shall, for all purposes of this Agreement (including, without limitation, for
purposes of subsequent application of this sentence) be deemed to instead
constitute two Borrowings (each originally advanced on the same date as such
particular Borrowing), one comprised of (subject to subsequent conversion in
accordance with this Agreement) Eurocurrency Revolving Loans in an aggregate
principal amount equal to the portion of such Borrowing so elected by the
Borrower to be comprised of Eurocurrency Revolving Loans and the second
comprised of (subject to subsequent conversion in accordance with this
Agreement) Base Rate Loans in an aggregate principal amount equal to the portion
of such particular Borrowing so elected by the Borrower to be comprised of Base
Rate Loans. If the Borrower shall elect to have multiple Interest Periods apply
to any particular Borrowing comprised of Eurocurrency Revolving Loans, then,
from and after the date such multiple Interest Periods commence, such particular
Borrowing shall, for all purposes of this Agreement (including, without
limitation, for purposes of subsequent application of this sentence), be deemed
to constitute a number of separate Borrowings (each originally advanced on the
same date as such particular Borrowing) equal to the number of, and
corresponding to, the different Interest Periods so selected, each such deemed
separate Borrowing corresponding to a particular selected Interest Period
comprised of (subject to subsequent conversion in accordance with this
Agreement) Eurocurrency Revolving Loans in an aggregate principal amount equal
to the portion of such particular Borrowing so elected by the Borrower to have
such Interest Period.

                                       21
<PAGE>

This Section 2.3(d) shall be applied appropriately in the event that the
Borrower shall make the elections described in the two preceding sentences at
the same time with respect to the same particular Borrowing.

     Section 2.4.  Competitive Bid Procedure.
                   -------------------------

     (a)  Competitive Bid Requests.  Subject to the terms and conditions set
          ------------------------
forth herein, from time to time before the Commitment Termination Date, the
Borrower may request Competitive Bids and may (but shall not have any obligation
to) accept Competitive Bids and borrow Competitive Loans. To request Competitive
Bids, the Borrower shall notify the Administrative Agent of such request by
telephone in the case of a Borrowing of Competitive Margin Loans, not later than
11:00 a.m., four (4) Business Days before the date of the proposed Borrowing
and, in the case of a Borrowing of Competitive Fixed Rate Loans, not later than
10:00 a.m., one (1) Business Day before the date of the proposed Borrowing;
provided that a Competitive Bid Request shall not be made within five (5)
Business Days after the date of any previous Competitive Bid Request, unless any
and all such previous Competitive Bids received in response thereto shall have
been withdrawn, rejected or accepted. Each such telephonic Competitive Bid
Request shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Competitive Bid Request in the form of Exhibit
                                                                         -------
2.4A or such other form as shall be approved by the Administrative Agent and the
----
Borrower and signed by the Borrower. Each such telephonic and written
Competitive Bid Request shall specify the following information in compliance
with Section 2.3(a):

          (i)    the aggregate amount and currency of the requested Competitive
     Borrowing;

          (ii)   the date of such Borrowing, which shall be a Business Day;

          (iii)  whether such Borrowing is to consist of Competitive Margin
     Loans or Competitive Fixed Rate Loans;

          (iv)   the Interest Period to be applicable to such Borrowing, which
     shall be a period contemplated by the definition of the term "Interest
     Period"; and

          (v)    the location and number of the Borrower's account to which
     funds are to be disbursed.

Promptly following receipt of a Competitive Bid Request in accordance with this
Section, the Administrative Agent shall notify the Lenders of the details
thereof by telecopy, inviting the Lenders to submit Competitive Bids.

     (b)  Competitive Bids.  Each Lender may (but shall not have any obligation
          ----------------
to) make one or more Competitive Bids to the Borrower in response to a
Competitive Bid Request. Each Competitive Bid by a Lender must be in the form of
Exhibit 2.4B or such other form as shall be approved by the Administrative Agent
------------
and the Borrower and must be received by the Administrative Agent by telecopy,
in the case of a Borrowing of Competitive Margin Loans or a

                                       22
<PAGE>

Borrowing of Competitive Fixed Rate Loans in Euros, Pounds or Kroner, not later
than 9:30 a.m., three (3) Business Days before the proposed date of such
Borrowing, and in the case of a Borrowing of Competitive Fixed Rate Loans in
Dollars, not later than 9:30 a.m., on the proposed date of such Borrowing.
Competitive Bids that do not conform substantially to the form approved by the
Administrative Agent may be rejected by the Administrative Agent, and the
Administrative Agent shall notify the applicable Lender as promptly as
practicable. Each Competitive Bid shall specify (i) the principal amount (which
shall be equal to or greater than the Dollar Equivalent of $10,000,000 and in an
integral multiple of the Borrowing Multiple and which may equal the entire
principal amount of the Competitive Borrowing requested by the Borrower) of the
Competitive Loan or Loans that the Lender is willing to make, (ii) the
Competitive Bid Rate or Rates at which the Lender is prepared to make such Loan
or Loans (expressed as a percentage rate per annum in the form of a decimal to
no more than four decimal places) and (iii) the Interest Period applicable to
each such Loan and the last day thereof.

     (c)  Notice to Borrower.  The Administrative Agent shall promptly notify
          ------------------
the Borrower by telecopy of the Competitive Bid Rate or Rates and the principal
amount specified in each Competitive Bid and the identity of the Lender that
shall have made such Competitive Bid.

     (d)  Acceptance of Competitive Bids.  Subject only to the provisions of
          ------------------------------
this paragraph, the Borrower may accept or reject any Competitive Bid. The
Borrower shall notify the Administrative Agent by telephone, confirmed by
telecopy in the form of Exhibit 2.4D or such other form as shall be approved by
the Administrative Agent and the Borrower, whether and to what extent it has
decided to accept or reject each Competitive Bid, in the case of a Borrowing of
Competitive Margin Loans or a Borrowing of Fixed Rate Loans in Euros, Pounds or
Kroner, not later than 10:30 a.m., three (3) Business Days before the date of
the proposed Borrowing, and in the case of a Borrowing of Competitive Fixed Rate
Loans in Dollars, not later than 10:30 a.m. on the date of the proposed
Borrowing; provided that (i) the failure of the Borrower to give such notice
shall be deemed to be a rejection of each Competitive Bid, (ii) the Borrower
shall not accept a Competitive Bid made at a particular Competitive Bid Rate if
the Borrower rejects a Competitive Bid made pursuant to the same Competitive Bid
Request at a lower Competitive Bid Rate, (iii) the aggregate amount of the
Competitive Bids accepted by the Borrower shall not exceed the aggregate amount
of the requested Competitive Borrowing specified in the related Competitive Bid
Request, (iv) to the extent necessary to comply with clause (iii) above, the
Borrower may accept Competitive Bids at the same Competitive Bid Rate in part,
which acceptance, in the case of multiple Competitive Bids at such Competitive
Bid Rate, shall be made pro rata in accordance with the amount of each such
Competitive Bid, and (v) except pursuant to clause (iv) above, no Competitive
Bid shall be accepted for a Competitive Loan unless such Competitive Loan is
equal to or greater than the Dollar Equivalent of $10,000,000 and in an integral
multiple of the Borrowing Multiple; provided further that if a Competitive Loan
must be in an amount less than the Dollar Equivalent of $10,000,000 because of
the provisions of clause (iv) above, such Competitive Loan may be for a minimum
of the Dollar Equivalent of $1,000,000 and in any integral multiple of the
Borrowing Multiple, and in calculating the pro rata allocation of acceptances of
portions of multiple Competitive Bids at a particular Competitive Bid Rate
pursuant to clause (iv), the amounts shall be rounded to integral multiples of
the Borrowing Multiple in a manner determined by the Borrower. A notice given by
the Borrower pursuant to this paragraph shall be irrevocable.

                                       23
<PAGE>

     (e)  Notice of Acceptance.  The Administrative Agent shall promptly notify
          --------------------
each bidding Lender by telecopy whether or not its Competitive Bid has been
accepted (and, if so, the amount and Competitive Bid Rate so accepted), and each
successful bidder will thereupon become bound, subject to the terms and
conditions hereof, to make the Competitive Loan in respect of which its
Competitive Bid has been accepted.

     (f)  Submission of Competitive Bid by Administrative Agent.  If the
          -----------------------------------------------------
Administrative Agent shall elect to submit a Competitive Bid in its capacity as
a Lender, it shall submit such Competitive Bid directly to the Borrower at least
one quarter of an hour earlier than the time by which the other Lenders are
required to submit their Competitive Bids to the Administrative Agent pursuant
to paragraph (b) of this Section.

     (g)  Limitation of Certain Competitive Loans.  Notwithstanding anything to
          ---------------------------------------
the contrary set forth in this Section 2.4, no Lender shall be permitted to make
any Competitive Loan if, after giving effect thereto, (i) the Dollar Equivalent
of the aggregate principal amount of the outstanding Revolving Loans,
Competitive Loans, and L/C Obligations of all Lenders would thereby exceed the
Revolving Credit Commitment Amount then in effect, or (ii) the Dollar Equivalent
of the aggregate principal amount of the outstanding Revolving Loans,
Competitive Loans, and L/C Obligations of all Lenders that have been funded or
issued in Euros, Pounds and Kroner would thereby exceed the Foreign Currency
Sublimit then in effect.

     Section 2.5.  Interest Periods.  As provided in Sections 2.3 and 2.4, at
                   ----------------
the time of each request for a Borrowing of Eurocurrency Loans or Competitive
Fixed Rate Loans, or for the continuation or conversion of any Borrowing of
Eurocurrency Revolving Loans, the Borrower shall select an Interest Period(s)
applicable to such Loans from among the available options subject to the
limitations in Sections 2.3 and 2.4; provided, however, that:

          (i)    the Borrower may not select an Interest Period for a Borrowing
     of Loans that extends beyond the Maturity Date;

          (ii)   whenever the last day of any Interest Period would otherwise be
     a day that is not a Business Day, the last day of such Interest Period
     shall either be (i) extended to the next succeeding Business Day, or (ii)
     in the case of Eurocurrency Loans only, reduced to the immediately
     preceding Business Day if the next succeeding Business Day is in the next
     calendar month; and

          (iii)  for purposes of determining an Interest Period, a month means a
     period starting on one day in a calendar month and ending on the
     numerically corresponding day in the next calendar month; provided,
     however, that if there is no such numerically corresponding day in the
     month in which an Interest Period is to end or if an Interest Period begins
     on the last Business Day of a calendar month, then in the case of
     Eurocurrency Loans only, such Interest Period shall end on the last
     Business Day of the calendar month in which such Interest Period is to end.

     Section 2.6.  Funding of Loans.
                   ----------------

                                       24
<PAGE>

     (a)  Disbursement of Loans.  Not later than 12:00 p.m. with respect to
          ---------------------
Borrowings in Dollars of Eurocurrency Loans and Competitive Fixed Rate Loans,
and 2:00 p.m. with respect to Base Rate Loans, on the date of any requested
advance of a new Borrowing of Loans, each Lender, subject to all other
provisions hereof, shall make available its Loan comprising its portion of such
Borrowing in funds immediately available in Atlanta, Georgia for the benefit of
the Administrative Agent and according to the payment instructions of the
Administrative Agent. Not later than 2:00 p.m. (local time at the bank where the
applicable Foreign Currency Payment Account is maintained) with respect to a new
Borrowing in Euros, Pounds or Kroner, on the date of any such requested
Borrowing, each Lender, subject to all other provisions hereof, shall make
available its Loan comprising its portion of such Borrowing in funds immediately
available in the applicable Foreign Currency Payment Account for the benefit of
the Administrative Agent and according to the payment instructions of the
Administrative Agent. The Administrative Agent shall make the proceeds of each
such Borrowing available in immediately available funds to the Borrower (or as
directed in writing by the Borrower) on such date. In the event that any Lender
does not make such amounts available to the Administrative Agent by the time
prescribed above, but such amount is received later that day, such amount may be
credited to the Borrower in the manner described in the preceding sentence on
the next Business Day (with interest on such amount to begin accruing hereunder
on such next Business Day) provided that acceptance by the Borrower of any such
late amount shall not be deemed a waiver by the Borrower of any rights it may
have against such Lender. No Lender shall be responsible to the Borrower for any
failure by another Lender to fund its portion of a Borrowing, and no such
failure by a Lender shall relieve any other Lender from its obligation, if any,
to fund its portion of a Borrowing.

     (b)  Administrative Agent Reliance on Lender Funding.  Unless the
          -----------------------------------------------
Administrative Agent shall have been notified by a Lender before the date on
which such Lender is scheduled to make payment to the Administrative Agent of
the proceeds of a Loan (which notice shall be effective upon receipt) that such
Lender does not intend to make such payment, the Administrative Agent may assume
that such Lender has made such payment when due and in reliance upon such
assumption may (but shall not be required to) make available to the Borrower the
proceeds of the Loan to be made by such Lender and, if any Lender has not in
fact made such payment to the Administrative Agent, such Lender shall, on
demand, pay to the Administrative Agent the amount made available to the
Borrower attributable to such Lender together with interest thereon for each day
during the period commencing on the date such amount was made available to the
Borrower and ending on (but excluding) the date such Lender pays such amount to
the Administrative Agent at a rate per annum equal to the Administrative Agent's
cost of funds for such amount. If such amount is not received from such Lender
by the Administrative Agent immediately upon demand, the Borrower will, on
demand, repay to the Administrative Agent the proceeds of the Loan attributable
to such Lender with interest thereon at a rate per annum equal to the interest
rate applicable to the relevant Loan, but the Borrower will in no event be
liable to pay any amounts otherwise due pursuant to Section 2.12 in respect of
such repayment. Nothing in this subsection shall be deemed to relieve any Lender
from any obligation to fund any Loans hereunder or to prejudice any rights which
the Borrower may have against any Lender as a result of any default by such
Lender hereunder.

                                       25
<PAGE>

     Section 2.7.  Applicable Interest Rates.
                   -------------------------

     (a)  Base Rate Loans.  Each Base Rate Loan shall bear interest (computed on
          ---------------
the basis of a 365-day year or 366-day year, as the case may be, and actual days
elapsed excluding the date of repayment) on the unpaid principal amount thereof
from the date such Loan is made until maturity (whether by acceleration or
otherwise) or conversion to a Eurocurrency Revolving Loan, at a rate per annum
equal to the lesser of (i) the Highest Lawful Rate, or (ii) the Base Rate from
time to time in effect. The Borrower agrees to pay such interest on each
Interest Payment Date for such Loan and at maturity (whether by acceleration or
otherwise).

     (b)  Eurocurrency Loans.  Each Eurocurrency Loan (whether a Revolving Loan
          ------------------
or Competitive Loan) shall bear interest (computed on the basis of a 360-day
year and actual days elapsed, except with respect to Eurocurrency Loans funded
in Pounds, in which case interest will be computed on the basis of a 365-day
year or 366-day year, as the case may be, and actual days elapsed, in each case
excluding the date of repayment) on the unpaid principal amount thereof from the
date such Loan is made until maturity (whether by acceleration or otherwise) or,
in the case of Eurocurrency Revolving Loans, conversion to a Base Rate Loan at a
rate per annum equal to the lesser of (i) the Highest Lawful Rate, or (ii) the
sum of Adjusted LIBOR plus the Applicable Margin (in the case of Eurocurrency
Revolver Loans) or LIBOR Rate plus the Competitive Margin (in the case of
Competitive Margin Loans), as the case may be. The Borrower agrees to pay such
interest on each Interest Payment Date for such Loan and at maturity (whether by
acceleration or otherwise) or, in the case of Eurocurrency Revolving Loans,
conversion to a Base Rate Loan.

     (c)  Competitive Fixed Rate Loans.  Each Competitive Fixed Rate Loan shall
          ----------------------------
bear interest (computed on the basis of a 360-day year and actual days elapsed,
except with respect to Competitive Fixed Rate Loans funded in Pounds, in which
case interest will be computed on the basis of a 365-day year or 366-day year,
as the case may be, and actual days elapsed, in each case excluding the date of
repayment) on the unpaid principal amount thereof from the date such Loan is
made until maturity (whether by acceleration or otherwise) at a rate per annum
equal to the Competitive Fixed Rate applicable to such Loan.

     (d)  Rate Determinations.  The Administrative Agent shall determine each
          -------------------
interest rate applicable to the Loans and Reimbursement Obligations hereunder
insofar as such interest rate involves a determination of Base Rate, Adjusted
LIBOR or LIBOR Rate, or any applicable default rate pursuant to Section 2.8, and
such determination shall be conclusive and binding except in the case of the
Administrative Agent's manifest error or willful misconduct. The Administrative
Agent shall promptly give notice to the Borrower and each Lender of each
determination of Adjusted LIBOR, and to the Borrower and each Lender submitting
a Competitive Bid of each determination of LIBOR Rate, with respect to each
Eurocurrency Loan.

     Section 2.8.  Default Rate.  If any payment of principal on any Loan is not
                   ------------
made when due after the expiration of the grace period therefor provided in
Section 7.1(a) (whether by acceleration or otherwise), or any Reimbursement
Obligation is not paid when due as provided in Section 2.13(c), such Loan or
Reimbursement Obligation shall bear interest (computed on the basis of a year of
360, 365 or 366 days, as applicable, and actual days elapsed) after any such

                                       26
<PAGE>

grace period expires until such principal then due is paid in full, which the
Borrower agrees to pay on demand, at a rate per annum equal to:

     (a)  for any Base Rate Loan, the lesser of (i) the Highest Lawful Rate, or
(ii) the sum of two percent (2%) per annum plus the Base Rate from time to time
in effect (but not less than the Base Rate in effect at the time such payment
was due);

     (b)  for any Eurocurrency Loan (whether a Eurocurrency Revolving Loan or
Competitive Margin Loan), the lesser of (i) the Highest Lawful Rate, or (ii) the
sum of two percent (2%) per annum plus the rate of interest in effect thereon at
the time of such default until the end of the Interest Period for such Loan and,
thereafter, at a rate per annum equal to the sum of two percent (2%) per annum
plus (x) in the case of any Loans made in Dollars, the Base Rate from time to
time in effect (but not less than the Base Rate in effect at the time such
payment was due), or (y) in the case of any Loans made in Euros, Pounds or
Kroners, the interest rate that would otherwise then be applicable under this
Agreement to a Eurocurrency Revolving Loan made in such currency for an Interest
Period of one month as from time to time in effect (but not less than such
interest rate in effect at the time such payment was due);

     (c)  for any Competitive Fixed Rate Loan, the lesser of (i) the Highest
Lawful Rate, or (ii) the sum of two percent (2%) per annum plus the Competitive
Fixed Rate in effect thereon at the time of such default until the end of the
Interest Period for such Loan and, thereafter, at the rate of interest that
would otherwise apply to a Eurocurrency Revolving Loan pursuant to paragraph (b)
above; and

     (d)  for any unpaid Reimbursement Obligations, the lesser of (i) the
Highest Lawful Rate, or (ii) the sum of two percent (2%) per annum plus (x) in
the case of any Reimbursement Obligations payable in Dollars, the Base Rate from
time to time in effect (but not less than the Base Rate in effect at the time
such payment was due), or (y) in the case of any Reimbursement Obligations
payable in any currency other than Dollars, the interest rate that would
otherwise then be applicable under this Agreement to a Eurocurrency Revolving
Loan made in such currency for an Interest Period of one month as from time to
time in effect (but not less than such interest rate in effect at the time such
payment was due).

     It is the intention of the Administrative Agent and the Lenders to conform
strictly to usury laws applicable to them. Accordingly, if the transactions
contemplated hereby or any Loan or other Obligation would be usurious as to any
of the Lenders under laws applicable to it (including the laws of the United
States of America and the State of New York or any other jurisdiction whose laws
may be mandatorily applicable to such Lender notwithstanding the other
provisions of this Agreement, the Notes or any other Credit Document), then, in
that event, notwithstanding anything to the contrary in this Agreement, the
Notes or any other Credit Document, it is agreed as follows: (i) the aggregate
of all consideration which constitutes interest under laws applicable to such
Lender that is contracted for, taken, reserved, charged or received by such
Lender under this Agreement, the Notes or any other Credit Document or otherwise
shall under no circumstances exceed the Highest Lawful Rate, and any excess
shall be credited by such Lender on the principal amount of the Loans or to the
Reimbursement Obligations (or, if the principal amount of the Loans and all
Reimbursement Obligations shall have been paid in full, refunded by such Lender
to the Borrower); and (ii) in the event that the maturity of the Loans is
accelerated by reason of an election of the holder or holders thereof resulting
from any Event of Default hereunder or otherwise, or in the event of any
required or permitted prepayment, then such consideration that constitutes
interest under laws applicable to such Lender may never include more than the
Highest Lawful Rate, and excess interest, if any, provided for in this
Agreement, the Notes, any other Credit Document or otherwise shall be
automatically canceled by such Lender as of the date of such acceleration or
prepayment and, if theretofore paid, shall be credited by such Lender on the
principal amount of the Loans or to the Reimbursement Obligations (or if the
principal amount of the Loans and all Reimbursement Obligations shall

                                       27
<PAGE>

have been paid in full, refunded by such Lender to the Borrower). To the extent
that the Texas Finance Code, Chapters 302 and 303, are relevant to the
Administrative Agent and the Lenders for the purpose of determining the Highest
Lawful Rate, the Administrative Agent and the Lenders hereby elect to determine
the applicable rate ceiling under such Article by the indicated (weekly) rate
ceiling from time to time in effect, subject to their right subsequently to
change such method in accordance with applicable law. In the event the Loans and
all Reimbursement Obligations are paid in full by the Borrower prior to the full
stated term of the Loans and the interest received from the actual period of the
existence of the Loans exceeds the Highest Lawful Rate, the Lenders shall refund
to the Borrower the amount of the excess or shall credit the amount of the
excess against amounts owing under the Loans and none of the Administrative
Agent or the Lenders shall be subject to any of the penalties provided by law
for contracting for, taking, reserving, charging or receiving interest in excess
of the Highest Lawful Rate. The Texas Finance Code, Chapter 346, which regulates
certain revolving credit loan accounts and revolving tri-party accounts, shall
not apply to this Agreement or the Loans.

     Section 2.9.  Repayment of Loans; Evidence of Debt.
                   ------------------------------------

     (a)  Repayment of Loans.  The Borrower hereby promises to pay (i) to the
          ------------------
Administrative Agent, for the account of each Lender, on the Maturity Date the
unpaid principal amount of each Revolving Loan then outstanding and (ii) to the
Administrative Agent, for the account of each Lender, on the last day of the
Interest Period applicable to such Loan, or, if earlier, on the Maturity Date,
the unpaid principal amount of each Competitive Loan then outstanding that is
owed to such Lender.

     (b)  Record of Loans by Lenders.  Each Lender shall maintain in accordance
          --------------------------
with its usual practice an account or accounts evidencing the indebtedness of
the Borrower to such Lender resulting from each Loan made by such Lender,
including the amounts of principal and accrued interest payable and paid to such
Lender from time to time hereunder.

     (c)  Record of Loans by Administrative Agent.  The Administrative Agent
          ---------------------------------------
shall maintain accounts in which it shall record (i) the amount of each Loan
made hereunder, the Class and Type thereof and the Interest Period applicable
thereto, (ii) the amount of any principal or accrued interest due and payable or
to become due and payable from the Borrower to each Lender hereunder and (iii)
the amount of any sum received by the Administrative Agent hereunder for the
account of the Lenders and each Lender's share thereof.

                                       28
<PAGE>

     (d)  Evidence of Obligations.  The entries made in the accounts maintained
          -----------------------
pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence
                                                          ----- -----
of the existence and amounts of the obligations recorded therein; provided that
                                                                  --------
the failure of any Lender or the Administrative Agent to maintain such accounts
or any error therein shall not in any manner affect the obligation of the
Borrower to repay the Loans in accordance with the terms of this Agreement.

     (e)  Notes.  The Revolving Loans outstanding to the Borrower from each
          -----
Lender shall, at the request of such Lender, be evidenced by promissory notes of
the Borrower payable to such Lender in the forms of Exhibit 2.9A (U.S. Dollars),
                                                    ------------
Exhibit 2.9B (Euros), Exhibit 2.9C (British Pounds Sterling) and Exhibit 2.9D
------------          ------------
(Norwegian Kroner), respectively (each a "Revolving Note"). The Competitive
Loans outstanding to the Borrower from any Lender, shall at the request of such
Lender, be evidenced by a promissory note of the Borrower payable to such Lender
in the form of Exhibit 2.9E (each a "Competitive Note"). The Borrower agrees to
               ------------
execute and deliver to the Administrative Agent, for the benefit of each Lender
requesting one or more promissory notes as aforesaid, an original of each such
promissory note, appropriately completed, to evidence the respective Loans made
by such Lender hereunder, within ten (10) Business Days after the Borrower
receives a written request therefor.

     (f)  Recording of Loans and Payments on Notes.  Each holder of a Note shall
          ----------------------------------------
record on its books and records or on a schedule to its appropriate Note (and
prior to any transfer of its Notes shall endorse thereon or on schedules forming
a part thereof appropriate notations to evidence) the amount of each Loan
outstanding from it to the Borrower, all payments of principal and interest and
the principal balance from time to time outstanding thereon, the type of such
Loan and, if a Eurocurrency Loan or a Competitive Fixed Rate Loan, the Interest
Period and interest rate applicable thereto. Such record, whether shown on the
books and records of a holder of a Note or on a schedule to its Note, shall be
prima facie evidence as to all such matters; provided, however, that the failure
of any holder to record any of the foregoing or any error in any such record
shall not limit or otherwise affect the obligation of the Borrower to repay all
Loans outstanding to it hereunder together with accrued interest thereon. At the
request of any holder of a Note and upon such holder tendering to the Borrower
the Note to be replaced, the Borrower shall furnish a new Note to such holder to
replace any outstanding Note and at such time the first notation appearing on
the schedule on the reverse side of, or attached to, such new Note shall set
forth the aggregate unpaid principal amount of all Loans, if any, then
outstanding thereon.

     Section 2.10.  Optional Prepayments.  The Borrower shall have the privilege
                    --------------------
of prepaying Base Rate Loans without premium or penalty at any time in whole or
at any time and from time to time in part (but, if in part, then in an amount
which is equal to or greater than $1,000,000); provided, however, that the
Borrower shall have given notice of such prepayment to the Administrative Agent
no later than 12:00 p.m. on the date of such prepayment. The Borrower shall have
the privilege of prepaying Adjusted LIBOR Loans (a) without premium or penalty
in whole or in part (but, if in part, then in an amount which is equal to or
greater than the Dollar Equivalent of $5,000,000 and in an integral multiple of
the Borrowing Multiple) only on the last Business Day of an Interest Period for
such Loan, and (b) at any other time so long as the breakage fees and funding
losses provided for in Section 2.12 are paid; provided, however, that the
Borrower shall have given notice of such prepayment to the Administrative Agent
no later

                                       29
<PAGE>

than 12:00 p.m. at least three (3) Business Days before the last Business Day of
such Interest Period or the proposed prepayment date. The Borrower shall not
have the right to prepay any Competitive Loan without the prior written consent
of the Lender thereof unless the applicable Competitive Bid Request shall have
so provided, the Borrower has given timely notice to the Lender of any such
prepayment as may be required pursuant to the terms of the Competitive Bid
Request, and the Borrower shall have paid to such Lender in connection with any
such prepayment all amounts required to be paid in connection with such
prepayment pursuant to the terms of the applicable Competitive Bid Request. Any
such prepayments shall be made by the payment of the principal amount to be
prepaid and accrued and unpaid interest thereon to the date of such prepayment.
Unless otherwise specified in writing by the Borrower, optional prepayments
shall be applied first, to the Revolving Loans, second, to the Reimbursement
Obligations with respect to Letters of Credit, and third, to the Competitive
Loans.

     Section 2.11.  Mandatory Prepayments of Loans.  In the event and on each
                    ------------------------------
occasion that (i) the sum of the Dollar Equivalent of the aggregate principal
amount of outstanding Revolving Loans, Competitive Loans, and L/C Obligations
exceeds 105% of the Revolving Credit Commitment Amount then in effect, or (ii)
the sum of the Dollar Equivalent of the aggregate principal amount of
outstanding Revolving Loans, Competitive Loans, and L/C Obligations denominated
in Euros, Pounds, and Kroner exceeds 105% of the Foreign Currency Sublimit,
then, in either case, the Borrower shall promptly prepay Revolving Loans and/or
Competitive Loans in an aggregate amount sufficient to eliminate such excess.
Immediately upon determining the need to make any such prepayment, the Borrower
shall notify the Administrative Agent of such required prepayment and of the
identity of the particular Revolving Loans and/or Competitive Loans being
prepaid.  If the Administrative Agent shall notify the Borrower that the
Administrative Agent has determined that any prepayment is required under this
Section 2.11, the Borrower shall make such prepayment no later than the second
Business Day following such notice.  Any mandatory prepayment of Revolving Loans
and/or Competitive Loans pursuant hereto shall not be limited by the notice
provision for prepayments set forth in Section 2.10.  Each such prepayment shall
be accompanied by a payment of all accrued and unpaid interest on the Loans
prepaid and any applicable breakage fees and funding losses pursuant to Section
2.12.

     Section 2.12.  Breakage Fees.  If any Lender incurs any loss, cost or
                    -------------
expense (excluding loss of anticipated profits and other indirect or
consequential damages) by reason of the liquidation or re-employment of deposits
or other funds acquired by such Lender to fund or maintain any Eurocurrency Loan
or Competitive Fixed Rate Loan as a result of any of the following events other
than any such occurrence as a result of a change of circumstance described in
Sections 8.1 or 8.2:

     (a)  any payment, prepayment or conversion of any such Loan on a date other
than the last day of its Interest Period (whether by acceleration, mandatory
prepayment or otherwise);

     (b)  any failure to make a principal payment of any such Loan on the due
date therefor; or

                                       30
<PAGE>

     (c)  any failure by the Borrower to borrow, continue or prepay, or convert
to, any such Loan on the date specified in a notice given pursuant to Section
2.3 or 2.4 (other than by reason of a default of such Lender),

then the Borrower shall pay to such Lender such amount as will reimburse such
Lender for such loss, cost or expense.  If any Lender makes such a claim for
compensation, it shall provide to the Borrower a certificate executed by an
officer of such Lender setting forth the amount of such loss, cost or expense in
reasonable detail (including an explanation of the basis for and the computation
of such loss, cost or expense) no later than ninety (90) days after the event
giving rise to the claim for compensation, and the amounts shown on such
certificate shall be prima facie evidence of such Lender's entitlement thereto.
Within ten (10) days of receipt of such certificate, the Borrower shall pay
directly to such Lender such amount as will compensate such Lender for such
loss, cost or expense as provided herein, unless such Lender has failed to
timely give notice to the Borrower of such claim for compensation as provided
herein, in which event the Borrower shall not have any obligation to pay such
claim.

     Section 2.13.  Letters of Credit.
                    -----------------

     (a)  Letters of Credit.  Subject to the terms and conditions hereof, the
          -----------------
Issuing Bank agrees to issue, from time to time prior to the Commitment
Termination Date, at the request of the Borrower and on behalf of the Lenders
and in reliance on their obligations under this Section 2.13, one or more
letters of credit (each a "Letter of Credit") for the Borrower's account in a
face amount in each case of at least the Dollar Equivalent of $500,000 and in an
aggregate undrawn face amount for all Letters of Credit at any time outstanding
not to exceed the Revolving Credit Commitment Amount; provided, that the Issuing
Bank shall not be obligated to issue a Letter of Credit pursuant to Section
2.13(d) if, after the issuance thereof, (i) the Dollar Equivalent of the
outstanding Revolving Loans, Competitive Loans, and L/C Obligations would
thereby exceed the Revolving Credit Commitment Amount then in effect, or (ii)
the issuance of such Letter of Credit would violate any legal or regulatory
restriction then applicable to the Issuing Bank or any Lender as notified by the
Issuing Bank or such Lender to the Administrative Agent before the date of
issuance of such Letter of Credit. Letters of Credit and any increases and
extensions thereof hereunder may be issued in face amounts of either Dollars,
Euros, Pounds or Kroner; provided further, that the Dollar Equivalent amount of
outstanding Revolving Loans, Competitive Loans, and Letters of Credit in Euros,
Pounds and Kroner determined, with respect to each such Revolving Loan,
Competitive Loan, or Letter of Credit, in accordance with Section 10.19 on the
date such Revolving Loan or Competitive Loan is funded, continued or converted,
or the date such Letter of Credit is issued, increased and extended, as
applicable, shall not exceed in the aggregate the Foreign Currency Sublimit then
in effect.

     (b)  Issuance Procedure.  To request that the Issuing Bank issue a Letter
          ------------------
of Credit, the Borrower shall deliver to the Issuing Bank and the Administrative
Agent (with a duplicate copy to an operations employee of the Issuing Bank as
designated by the Issuing Bank from time to time) a duly executed Issuance
Request substantially in the form of Exhibit 2.13A (each an "Issuance Request"),
                                     -------------
together with a duly executed application for the relevant Letter of Credit
substantially in the form of Exhibit 2.13B (each an "Application"), or such
                             -------------
other computerized issuance or application procedure, instituted from time to
time by the Issuing Bank and the

                                       31
<PAGE>

Administrative Agent and agreed to by the Borrower, completed to the reasonable
satisfaction of the Issuing Bank and the Administrative Agent, and such other
information as the Issuing Bank and the Administrative Agent may reasonably
request. In the event of any irreconcilable difference or inconsistency between
this Agreement and an Application, the provisions of this Agreement shall
govern. Upon receipt of a properly completed and executed Application and any
other reasonably requested information at least three (3) Business Days prior to
any requested issuance date, the Issuing Bank will process such Application in
accordance with its customary procedures and issue the requested Letter of
Credit on the requested issuance date. The Borrower may cancel any requested
issuance of a Letter of Credit prior to the issuance thereof. The Issuing Bank
will notify the Administrative Agent and each Lender of the amount, currency,
and expiration date of each Letter of Credit it issues promptly upon issuance
thereof. Each Letter of Credit shall have an expiration date no later than four
(4) Business Days before the Maturity Date. If the Issuing Bank issues any
Letters of Credit with expiration dates that automatically extend unless the
Issuing Bank gives notice that the expiration date will not so extend, the
Issuing Bank will give such notice of non-renewal before the time necessary to
prevent such automatic extension if (and will not give such notice of non-
renewal before such time unless) before such required notice date (i) the
expiration date of such Letter of Credit if so extended would be later than four
(4) Business Days before the Maturity Date, (ii) the Commitment Termination Date
shall have occurred, (iii) a Default or an Event of Default exists and the
Required Lenders have given the Issuing Bank instructions not to so permit the
expiration date of such Letter of Credit to be extended, or (iv) the Issuing
Bank is so directed by the Borrower. The Issuing Bank agrees to issue amendments
to any Letter of Credit increasing its amount, or extending its expiration date,
at the request of the Borrower, subject to the conditions precedent for all
Borrowings of Section 4.2 and the other terms and conditions of this Section
2.13.

     (c)  The Borrower's Reimbursement Obligations.
          ----------------------------------------

          (i)  The Borrower hereby irrevocably and unconditionally agrees to
     reimburse the Issuing Bank for each payment or disbursement made by the
     Issuing Bank to settle its obligations under any draft drawn or other
     payment made under a Letter of Credit (a "Reimbursement Obligation") within
     two (2) Business Days from when such draft is paid or other payment is made
     with either funds not borrowed hereunder or with a Borrowing of Revolving
     Loans subject to Section 2.3 and the other terms and conditions contained
     in this Agreement. The Reimbursement Obligation shall bear interest (which
     the Borrower hereby promises to pay) from and after the date such draft is
     paid or other payment is made until (but excluding the date) the
     Reimbursement Obligation is paid at the lesser of (x) the Highest Lawful
     Rate, or (y) the Base Rate (in the case of a Letter of Credit payable in
     Dollars) or the rate of interest that would then be applicable hereunder to
     an Adjusted LIBOR Loan with an Interest Period of one month (in the case of
     a Letter of Credit payable in Euros, Pounds or Kroner), in each case so
     long as the Reimbursement Obligation shall not be past due, and thereafter
     at the default rate per annum as set forth in Section 2.8(d), whether or
     not the Maturity Date shall have occurred. If any such payment or
     disbursement is reimbursed to the Issuing Bank on the date such payment or
     disbursement is made by the Issuing Bank, interest shall be paid on the
     reimbursable amount for one (1) day. The Issuing Bank shall give the
     Borrower

                                       32
<PAGE>

     notice of any drawing on a Letter of Credit within one (1) Business Day
     after such drawing is paid.

          (ii)      The Borrower agrees for the benefit of the Issuing Bank and
     each Lender that, notwithstanding any provision of any Application, the
     obligations of the Borrower under this Section 2.13(c) and each applicable
     Application shall be absolute, unconditional and irrevocable and shall be
     performed strictly in accordance with the terms of this Agreement and each
     applicable Application under all circumstances whatsoever (other than the
     defense of payment in accordance with this Agreement), including, without
     limitation, the following circumstances (subject in all cases to the
     defense of payment in accordance with this Agreement):

               (1)  any lack of validity or enforceability of any of the L/C
     Documents;

               (2)  any amendment or waiver of or any consent to depart from all
     or any of the provisions of any of the L/C Documents;

               (3)  the existence of any claim, set-off, defense or other right
     the Borrower may have at any time against a beneficiary of a Letter of
     Credit (or any person for whom a beneficiary may be acting), the Issuing
     Bank, any Lender or any other Person, whether in connection with this
     Agreement, another L/C Document or any unrelated transaction;

               (4)  any statement or any other document presented under a Letter
     of Credit proving to be forged, fraudulent, invalid or insufficient in any
     respect or any statement therein being untrue or inaccurate in any respect;

               (5)  payment by the Issuing Bank under a Letter of Credit against
     presentation to the Issuing Bank of a draft or certificate that does not
     comply with the terms of the Letter of Credit; or

               (6)  any other act or omission to act or delay of any kind by the
     Issuing Bank, any Lender or any other Person or any other event or
     circumstance whatsoever that might, but for the provisions of this Section
     2.13(c), constitute a legal or equitable discharge of the Borrower's
     obligations hereunder, under an Issuance Request or under an Application;

provided, however, the foregoing shall not be construed to excuse the Issuing
Bank from liability to the Borrower to the extent of any direct damages (but
excluding consequential damages, which are hereby waived to the extent not
prohibited by applicable law) suffered by the Borrower that are caused by the
Issuing Bank's gross negligence or willful misconduct.

     (d)  The Participating Interests.  Each Lender severally and not jointly
          ---------------------------
agrees to purchase from the Issuing Bank, and the Issuing Bank hereby agrees to
sell to each Lender, an undivided percentage participating interest, to the
extent of its Percentage, in each Letter of Credit issued by, and Reimbursement
Obligation owed to, the Issuing Bank in connection with a

                                       33
<PAGE>

     Letter of Credit. Upon any failure by the Borrower to pay any Reimbursement
     Obligation in connection with a Letter of Credit at the time required in
     Sections 2.13(c) and 2.3(c), or if the Issuing Bank is required at any time
     to return to the Borrower or to a trustee, receiver, liquidator, custodian
     or other Person any portion of any payment by the Borrower of any
     Reimbursement Obligation in connection with a Letter of Credit, the Issuing
     Bank shall promptly give notice of same to each Lender, and the Issuing
     Bank shall have the right to require each Lender to fund its participation
     in such Reimbursement Obligation. Each Lender (except the Issuing Bank to
     the extent it is also a Lender) shall pay to the Issuing Bank in the
     applicable currency an amount equal to such Lender's Percentage of such
     unpaid or recaptured Reimbursement Obligation not later than the Business
     Day it receives notice from the Issuing Bank to such effect, if such notice
     is received before 2:00 p.m., or not later than the following Business Day
     if such notice is received after such time. If a Lender fails to pay timely
     such amount to the Issuing Bank, it shall also pay to the Issuing Bank
     interest on such amount accrued from the date payment of such amount was
     made by the Issuing Bank to the date of such payment by the Lender at a
     rate per annum equal to the Base Rate in effect for each such day and only
     after such payment shall such Lender be entitled to receive its Percentage
     of each payment received on the relevant Reimbursement Obligation and of
     interest paid thereon. The several obligations of the Lenders to the
     Issuing Bank under this Section 2.13(d) shall be absolute, irrevocable and
     unconditional under any and all circumstances whatsoever and shall not be
     subject to any set-off, counterclaim or defense to payment any Lender may
     have or have had against the Borrower, the Issuing Bank, and any other
     Lender or any other Person whatsoever including, but not limited to, any
     defense based on the failure of the demand for payment under the Letter of
     Credit to conform to the terms of such Letter of Credit or the legality,
     validity, regularity or enforceability of such Letter of Credit and
     INCLUDING, BUT NOT LIMITED TO, THOSE RESULTING FROM THE ISSUING BANK'S OWN
     SIMPLE OR CONTRIBUTORY NEGLIGENCE. Without limiting the generality of the
     foregoing, such obligations shall not be affected by any Default or Event
     of Default or by any subsequent reduction or termination of any Commitment
     of a Lender, and each payment by a Lender under this Section 2.13 shall be
     made without any offset, abatement, withholding or reduction whatsoever.

     Section 2.14.  Commitment Terminations. The Borrower shall have the right
                    -----------------------
at any time and from time to time, upon three (3) Business Days' prior and
irrevocable written notice to the Administrative Agent, to terminate or reduce
the Commitments without premium or penalty, in whole or in part, any reduction
(i) to be in an amount not less than $5,000,000 as determined by the Borrower
and in integral multiples of $5,000,000, (ii) to effect an automatic pro rata
reduction of the Foreign Currency Sublimit, and (iii) as to both the Commitments
and the Foreign Currency Sublimit to be allocated ratably among the Lenders in
proportion to their respective Commitments; provided, that (A) the Revolving
Credit Commitment Amount may not be reduced to an amount less than the sum of
the aggregate principal amount of outstanding Revolving Loans, Competitive
Loans, and L/C Obligations, and (B) the Foreign Currency Sublimit may not be
reduced to an amount less than the sum of the aggregate principal amount of
outstanding Revolving Loans, Competitive Loans, and L/C Obligations payable in
Euros, Pounds and Kroner, in each case after converting, if necessary, any such
outstanding Obligations to their Dollar Equivalent amounts in accordance with
Section 10.19 and after giving effect to payments on such proposed termination
or reduction date; provided, however, that to the extent the Borrower provides
                   --------  -------
to the Administrative Agent cash collateral in an amount sufficient to cover

                                       34
<PAGE>

such shortage or back to back letters of credit from a bank(s) or financial
institution(s) whose short-term unsecured debt rating is rated A or above from
either S&P or Moody's or such other bank(s) or financial institution(s)
satisfactory to the Required Lenders in an amount equal to the undrawn face
amount of any applicable outstanding Letters of Credit with an expiration date
of at least five (5) days after the expiration date of any applicable Letter of
Credit and which provide that the Administrative Agent may make a drawing
thereunder in the event that it pays a drawing under such Letter of Credit. The
Administrative Agent shall give prompt notice to each Lender of any such
termination or reduction of the Commitments. Any termination of Commitments
pursuant to this Section 2.14 is permanent and may not be reinstated.

     Section 2.15.  Additional Interest Costs.
                    -------------------------

     (a)  Mandatory Costs Rate. If and so long as any Lender is required to make
          --------------------
special deposits with the Bank of England, to maintain reserve asset ratios or
to pay fees, in each case in respect of such Lender's Eurocurrency Loans in any
currency other than Dollars, such Lender may require the Borrower to pay,
contemporaneously with each payment of interest on each of such Loans,
additional interest on such Loan at a rate per annum equal to the Mandatory
Costs Rate calculated in accordance with the formula and in the manner set forth
in Exhibit 2.15 hereto.
   ------------

     (b)  Other Requirements for Additional Interest. If and so long as any
          ------------------------------------------
Lender is required to comply with reserve assets, liquidity, cash margin or
other requirements of any monetary or other authority (including any such
requirement imposed by the European Central Bank or the European System of
Central Banks, but excluding requirements reflected in the Statutory Reserve
Rate or the Mandatory Costs Rate) in respect of any of such Lender's
Eurocurrency Loans in any currency other than Dollars, such Lender may require
the Borrower to pay, contemporaneously with each payment of interest on each of
such Loans subject to such requirements, additional interest on such Loan at a
rate per annum specified by such Lender to be the cost to such Lender of
complying with such requirements in relation to such Loan.

     (c)  Determination of Amounts Due. Any additional interest owed pursuant to
          ----------------------------
paragraph (a) or (b) above shall be determined by the relevant Lender and
notified to the Borrower (with a copy to the Administrative Agent) in the form
of a certificate setting forth such additional interest at least five Business
Days before each date on which interest is payable for the relevant Loan, and
such additional interest so notified to the Borrower by such Lender shall be
payable to the Administrative Agent for the account of such Lender on each date
on which interest is payable for such Loan.

     (d)  Limitation on Amounts Due. Subject to the provisions of Section
          -------------------------
8.3(c), failure or delay on the part of any Lender on any occasion to demand
additional interest pursuant to this Section shall not constitute a waiver of
such Lender's right to demand such additional interest on any subsequent
occasion.

     (e)  Applicability to Competitive Loans.  Notwithstanding the foregoing
          ----------------------------------
provisions of this Section, a Lender shall not be entitled to compensation
pursuant to this Section in respect of any Competitive Loan if the circumstances
that would otherwise entitle it to such compensation

                                       35
<PAGE>

shall have been publicly announced prior to submission of the Competitive Bid
pursuant to which such Loan was made.

ARTICLE 3.  FEES AND PAYMENTS.

     Section 3.1.  Fees.
                   ----

     (a)  Facility Fees. The Borrower agrees to pay to the Administrative Agent
          -------------
for the account of each Lender a facility fee, which shall accrue at the
Applicable Facility Fee Rate on the daily amount of the Commitment of such
Lender (whether used or unused) during the period from and including the Initial
Availability Date to but excluding the date on which such Commitment terminates;
provided that, if such Lender continues to have any Revolving Credit Exposure
after its Commitment terminates, then such facility fee shall continue to accrue
on the daily amount of such Lender's Revolving Credit Exposure from and
including the date on which its Commitment terminates to but excluding the date
on which such Lender ceases to have any Revolving Credit Exposure. Accrued
facility fees shall be payable in arrears on the last Business Day of March,
June, September and December of each year, commencing on March 30, 2001, and on
the date(s) on which the Commitments shall have terminated and the Lenders shall
have no further Revolving Credit Exposures. All facility fees shall be computed
on the basis of a year of 360 days and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day).

     (b)  Utilization Fees.  For any day on which the Dollar Equivalent of the
          ----------------
outstanding principal amount of the Loans and L/C Obligations shall be greater
than an amount equal to 33% of the total Commitments (and for any day after the
termination of all the Commitments on which any Loans or L/C Obligations shall
be outstanding if the Dollar Equivalent of the outstanding principal amount
thereof on the date the Commitments terminated shall have been greater than 33%
of the total Commitments in effect on such date), the Borrower shall pay to the
Administrative Agent for the account of each Lender a utilization fee equal to
the Applicable Utilization Fee Rate multiplied by the Dollar Equivalent of
aggregate amount of such Lender's outstanding Loans and applicable Percentage of
L/C Obligations on such day. Accrued and unpaid utilization fees, if any, shall
be payable in arrears on the last Business Day of each March, June, September
and December and on the date(s) on which the Commitments shall have terminated
and there are no Loans or L/C Obligations outstanding. All utilization fees
shall be computed on the basis of a year of 360 days and shall be payable for
the actual number of days elapsed (including the first day but excluding the
last day).

     (c)  Letter of Credit Fees. Commencing upon the date of issuance, increase
          ---------------------
or extension of any Letter of Credit and thereafter on the last Business Day of
each March, June, September and December, the Borrower shall pay to the
Administrative Agent quarterly in advance, for the period until the next Letter
of Credit fee payment date, for the ratable account of the Lenders, a non-
refundable fee payable in Dollars equal to the Applicable Margin multiplied by
the outstanding face amount or increase of such Letter of Credit during such
upcoming period calculated on the basis of a 360 day year and actual days
elapsed and based on the then scheduled expiration date of the Letter of Credit.
For any Letter of Credit issued with a face amount in Euros, Pounds or Kroner,
the fees shall be converted into Dollars in accordance with

                                       36
<PAGE>

Section 10.19 as of two (2) days before the issuance date thereof, and
thereafter five (5) days before any fee with respect thereto shall be due and
payable hereunder. In addition, the Borrower shall pay to the Issuing Bank
solely for the Issuing Bank's account, in connection with each Letter of Credit,
issuance and administrative fees and expenses for Letters of Credit as agreed
from time to time between the Issuing Bank and the Borrower.

     (d)  Administrative Agent Fees. The Borrower shall pay to the
          -------------------------
Administrative Agent and Lead Arranger the fees from time to time agreed to by
the Borrower, the Administrative Agent, and Lead Arranger.

     (e)  Payment of Fees. All fees payable hereunder shall be paid on the dates
          ---------------
due, in immediately available funds, to the Administrative Agent for
distribution, in the case of facility fees, utilization fees, and Letter of
Credit fees (other than issuance and administrative fees payable to the Issuing
Bank), to the Lenders.

     Section 3.2.  Place and Application of Payments.
                   ---------------------------------

     (a)  All payments of principal of and interest on the Loans, Reimbursement
Obligations and all fees and other amounts payable by the Borrower under the
Credit Documents shall be made by the Borrower to the Administrative Agent, for
the benefit of the Lenders entitled to such payments, in immediately available
funds on the due date thereof (i) in the case of payments in Dollars, no later
than 2:00 p.m. at the office of the Administrative Agent in Atlanta, Georgia, or
such other location as the Administrative Agent may designate in writing to the
Borrower, and (ii) in the case of payments in Euros, Pounds or Kroner, no later
than the close of business (at the bank where the applicable Foreign Currency
Payment Account is maintained) to the applicable Foreign Currency Payment
Account. Any payments received by the Administrative Agent from the Borrower
after the time specified in the preceding sentence shall be deemed to have been
received on the next Business Day. If the Borrower does not, or is unable for
any reason to, effect payment of a Loan or Reimbursement Obligation to the
Lenders in the applicable currency or if the Borrower shall default in the
payment when due of any payment in such currency, the Lenders may, at their
option, require such payment to be made to the Lenders in the Dollar Equivalent
of such currency determined in accordance with Section 10.19. With respect to
any amount due and payable in Euros, Pounds or Kroner, the Borrower agrees to
hold the Lenders harmless from any losses incurred by the Lenders arising from
any change in the value of Dollars in relation to such currency between the date
such payment became due and the date of payment thereof (other than losses
incurred by any Lender due to the gross negligence or willful misconduct of such
Lender). The Administrative Agent will, on the same day each payment is received
or deemed to have been received in accordance with this Section 3.2, cause to be
distributed like funds in like currency to each Lender owed an Obligation for
which such payment was received, pro rata based on the respective amounts of
such type of Obligation then owing to each Lender.

     (b)  If any payment received by the Administrative Agent under any Credit
Document is insufficient to pay in full all amounts then due and payable to the
Administrative Agent and the Lenders under the Credit Documents, such payment
shall be distributed by the Administrative Agent and applied by the
Administrative Agent and the Lenders in the order set

                                       37
<PAGE>

forth in Section 7.7. In calculating the amount of Obligations owing each Lender
other than for principal and interest on Loans and Reimbursement Obligations and
fees under Section 3.1, the Administrative Agent shall only be required to
include such other Obligations that Lenders have certified to the Administrative
Agent in writing are due to such Lenders.

     Section 3.3.  Withholding Taxes.
                   -----------------

     (a)  Payments Free of Withholding.  Except as otherwise required by law and
          ----------------------------
subject to Section 3.3(b), each payment by the Borrower to any Lender, Issuing
Bank or Administrative Agent under this Agreement or any other Credit Document
shall be made without withholding for or on account of any present or future
taxes imposed by or within the jurisdiction in which the Borrower is
incorporated, any jurisdiction from which the Borrower makes any payment, or (in
each case) any political subdivision or taxing authority thereof or therein,
excluding, in the case of each Lender, Issuing Bank and the Administrative
Agent, the following taxes:

          (i)    taxes imposed on, based upon, or measured by such Lender's,
     Issuing Bank's or the Administrative Agent's net income or profits, and
     branch profits, franchise and similar taxes imposed on it;

          (ii)   taxes imposed on such Lender, Issuing Bank or the
     Administrative Agent as a result of a present or former connection between
     the taxing jurisdiction and such Lender, Issuing Bank or Administrative
     Agent, or any affiliate thereof, as the case may be, other than a
     connection resulting solely from the transactions contemplated by this
     Agreement;

          (iii)  taxes imposed as a result of the transfer by such Lender,
     Issuing Bank or Administrative Agent of its interest in this Agreement or
     any other Credit Document or a designation by such Lender, Issuing Bank or
     the Administrative Agent (other than pursuant to Section 8.3(c)) of a new
     Lending Office (other than taxes imposed as a result of any change in
     treaty, law or regulation after such transfer of such Lender's, Issuing
     Bank's or the Administrative Agent's interest in this Agreement or any
     other Credit Document or designation of a new Lending Office);

          (iv)   taxes imposed by the United States of America (or any political
     subdivision thereof or tax authority therein) upon a Lender, Issuing Bank
     or Administrative Agent organized under the laws of a jurisdiction outside
     of the United States, except to the extent that such tax is imposed as a
     result of any change in applicable law, regulation or treaty (other than
     any addition of or change in any "anti-treaty shopping," "limitation of
     benefits," or similar provision applicable to a treaty) after the date
     hereof, in the case of each Lender, Issuing Bank or Administrative Agent
     originally a party hereto or, in the case of any Purchasing Lender (as
     defined in Section 10.10) or other Issuing Bank or Administrative Agent,
     after the date on which it becomes a Lender, Issuing Bank, or
     Administrative Agent, as the case may be; or

          (v)    taxes which would not have been imposed but for (a) the failure
     of any Lender, the Issuing Bank, or the Administrative Agent, as the case
     may be, to provide (I)

                                       38
<PAGE>

     the applicable forms prescribed by the Internal Revenue Service, as
     required pursuant to Section 3.3(b), or (II) any other form, certification,
     documentation or proof which is reasonably requested by the Borrower, or
     (b) a determination by a taxing authority or a court of competent
     jurisdiction that a form, certification, documentation or other proof
     provided by such Lender, Issuing Bank or the Administrative Agent to
     establish an exemption from such tax, assessment or other governmental
     charge is false;

(all such present or future taxes, excluding only the taxes described in the
preceding clauses (i) through (v), being hereinafter referred to as "Indemnified
Taxes"). If any such withholding is so required, the Borrower shall make the
withholding, pay the amount withheld to the appropriate governmental authority
before penalties attach thereto or interest accrues thereon and forthwith pay
such additional amount as may be necessary to ensure that the net amount
actually received by each Lender, Issuing Bank and the Administrative Agent is
free and clear of such Indemnified Taxes (including Indemnified Taxes on such
additional amount) and is equal to the amount that such Lender, Issuing Bank or
the Administrative Agent (as the case may be) would have received had
withholding of any Indemnified Tax not been made. If the Borrower pays any
Indemnified Taxes, or any penalties or interest in connection therewith, it
shall deliver official tax receipts evidencing the payment or certified copies
thereof, or other evidence of payment if such tax receipts have not yet been
received by the Borrower (with such tax receipts to be delivered within fifteen
(15) days after being actually received), to the Lender, Issuing Bank or the
Administrative Agent on whose account such withholding was made (with a copy to
the Administrative Agent if not the recipient of the original) within fifteen
(15) days of such payment. If the Administrative Agent, Issuing Bank or any
Lender pays any Indemnified Taxes, or any penalties or interest in connection
therewith, the Borrower shall reimburse the Administrative Agent, Issuing Bank
or that Lender for the payment on demand in the currency in which such payment
was made. Such Lender, Issuing Bank or the Administrative Agent shall make
written demand on the Borrower for reimbursement hereunder no later than ninety
(90) days after the earlier of (i) the date on which such Lender, Issuing Bank
or the Administrative Agent makes payment of the Indemnified Taxes, penalties
and interest, and (ii) the date on which the relevant taxing authority or other
governmental authority makes written demand upon such Lender, Issuing Bank or
the Administrative Agent for payment of the Indemnified Taxes, penalties and
interest. Any such demand shall describe in reasonable detail such Indemnified
Taxes, penalties or interest, including the amount thereof if then known to such
Lender, Issuing Bank, or the Administrative Agent, as the case may be. In the
event that such Lender, Issuing Bank or the Administrative Agent fails to give
the Borrower timely notice as provided herein, the Borrower shall not have any
obligation to pay such claim for reimbursement.

     (b)  U.S. Withholding Tax Exemptions. Upon the written request of the
          -------------------------------
Borrower or the Administrative Agent, each Lender or Issuing Bank that is not a
United States person (as such term is defined in Section 7701(a)(30) of the
Code) shall submit to the Borrower and the Administrative Agent, promptly after
such request, two duly completed and signed copies of either Form W-8 BEN or any
successor form (entitling such Lender or Issuing Bank to a complete exemption
from withholding under the Code on all amounts to be received by such Lender or
Issuing Bank, including fees, pursuant to the Credit Documents) or Form W-8 ECI
or any successor form (relating to all amounts to be received by such Lender or
Issuing Bank, including fees, pursuant to the Credit Documents) of the United
States Internal Revenue Service,

                                       39
<PAGE>

and any other form of the United States Internal Revenue Service reasonably
necessary to accomplish exemption from withholding obligations or to facilitate
the Administrative Agent's performance under this Agreement. Thereafter and from
time to time, each such Lender or Issuing Bank shall submit to the Borrower and
the Administrative Agent such additional duly completed and signed copies of
such forms (or such successor forms as shall be adopted from time to time by the
relevant United States taxing authorities) as may be required under then-current
United States law or regulations to avoid United States withholding taxes on
payments in respect of all amounts to be received by such Lender or Issuing
Bank, including fees, pursuant to the Credit Documents. Upon the request of the
Borrower, each Lender or Issuing Bank that is a United States person shall
submit to the Borrower a certificate to the effect that it is such a United
States person.

     (c)  Inability of Lender to Submit Forms.  If any Lender or Issuing Bank
          -----------------------------------
determines in good faith, as a result of any change in applicable law,
regulation or treaty, or in any official application or interpretation thereof,
that (i) it is unable to submit to the Borrower or Administrative Agent any form
or certificate that such Lender or Issuing Bank is obligated to submit pursuant
to subsection (b) of this Section 3.3, (ii) it is required to withdraw or cancel
any such form or certificate previously submitted, or (iii) any such form or
certificate otherwise becomes ineffective or inaccurate, such Lender or Issuing
Bank shall promptly notify the Borrower and Administrative Agent of such fact,
and the Lender or Issuing Bank shall to that extent not be obligated to provide
any such form or certificate and will be entitled to withdraw or cancel any
affected form or certificate, as applicable.

     (d)  Refund of Taxes. If any Lender, Issuing Bank or the Administrative
          ---------------
Agent receives a refund of any Indemnified Tax or any tax referred to in Section
10.3 with respect to which the Borrower has paid any amount pursuant to this
Section 3.3 or Section 10.3, such Lender, Issuing Bank or the Administrative
Agent shall pay the amount of such refund (including any interest received with
respect thereto) to the Borrower within fifteen (15) days after receipt thereof.
A Lender, Issuing Bank, or the Administrative Agent shall provide, at the sole
cost and expense of the Borrower, such assistance as the Borrower may reasonably
request in order to obtain such a refund; provided, however, that neither the
Administrative Agent nor any Lender or Issuing Bank shall in any event be
required to disclose any information to the Borrower with respect to the overall
tax position of the Administrative Agent, Issuing Bank, or such Lender.

ARTICLE 4.  CONDITIONS PRECEDENT.

     Section 4.1.  Initial Borrowing. The obligation of each Lender to advance
                   -----------------
the initial Loans hereunder, and of the Issuing Bank to issue the initial Letter
of Credit hereunder, on or after the Initial Availability Date is subject to
satisfaction of the following conditions precedent:

     (a)  The Administrative Agent shall have received the following all in form
and substance reasonably satisfactory to the Administrative Agent and in
sufficient number of signed counterparts, where applicable, to provide one for
each Lender:

                                       40
<PAGE>

          (i)    Certificates of Officers. Certificates of the Secretary or an
                 ------------------------
     Assistant Secretary of the Borrower containing specimen signatures of the
     persons authorized to execute Credit Documents on the Borrower's behalf or
     any other documents provided for herein or therein, together with (x)
     copies of resolutions of the Board of Directors or other appropriate body
     of the Borrower authorizing the execution and delivery of the Credit
     Documents, (y) copies of the Borrower's Memorandum and Articles of
     Association and other publicly filed organizational documents in its
     jurisdiction of organization and bylaws and other governing documents, and
     (z) a certificate of incorporation and good standing from the appropriate
     governing agency of the Borrower's jurisdiction of organization;

          (ii)   Regulatory Filings and Approvals. Copies of all necessary
                 --------------------------------
     governmental and third party approvals, registrations, and filings in
     respect of the transactions contemplated by this Agreement;

          (iii)  Insurance Certificate. An insurance certificate dated not more
                 ---------------------
     than ten (10) days prior to the Initial Availability Date from the Borrower
     describing in reasonable detail the insurance maintained by the Borrower
     and its Subsidiaries as required by this Agreement;

          (iv)   Opinions of Counsel. The opinions of (x) Baker Botts LLP,
                 -------------------
     counsel for the Borrower, in the form of Exhibit 4.1A, (y) William
                                              ------------
     Turcotte, Associate General Counsel of the Borrower, in the form of Exhibit
                                                                         -------
     4.1B, and (z) Walkers, Cayman Islands counsel for the Borrower, in the form
     ----
     of Exhibit 4.1C;
        ------------

          (v)    Closing Certificate. Certificate of the President or a Vice
                 -------------------
     President of the Borrower as to the satisfaction of all conditions set
     forth in this Section 4.1; and

          (vi)   Transocean/ABN Revolving Credit Facility. Evidence that all
                 ----------------------------------------
     commitments of the lenders under the Transocean/ABN Revolving Credit
     Facility are being terminated, and all amounts then outstanding under the
     Transocean/ABN Revolving Credit Facility are being paid in full,
     simultaneously on the Initial Availability Date.

     (b)  Each of the representations and warranties of the Borrower and its
Subsidiaries set forth herein and in the other Credit Documents shall be true
and correct in all material respects as of the time of such Borrowing, except to
the extent that any such representation or warranty relates solely to an earlier
date, in which case it shall have been true and correct in all material respects
as of such earlier date;

     (c)  No Default or Event of Default shall have occurred and be continuing;

     (d)  There shall be no pending or, to the knowledge of the Borrower,
threatened actions, suits or proceedings at law or in equity or by or before any
governmental authority against or affecting the Borrower or any of its
Subsidiaries or any of their respective businesses,

                                       41
<PAGE>

properties or rights which, if adversely determined, could reasonably be
expected to result in a Material Adverse Effect; and

     (e)  Payment of all fees and all expenses incurred through the Effective
Date then due and owing to the Administrative Agent, the Lenders, and the Lead
Arranger pursuant to this Agreement and as otherwise agreed in writing by the
Borrower.

     Section 4.2.  All Borrowings. The obligation of each Lender to make any
                   --------------
advance of any Loan, and of the Issuing Bank to issue any Letter of Credit
hereunder (including any increase in the amount of, or extension of the
expiration date of, any Letter of Credit) is subject to satisfaction of the
following conditions precedent (but subject to Sections 2.3(c) and 2.13(c)):

     (a)  Notices.  In the case of any Loan, the Administrative Agent shall have
          -------
received the Borrowing Request required by the first sentence of Section 2.3(a),
or the Competitive Bid Request and notice of acceptance thereof pursuant to
Section 2.4, as the case may be, and in the case of the issuance, extension or
increase of a Letter of Credit, the Issuing Bank and the Administrative Agent
shall have received a duly completed Issuance Request and Application for such
Letter of Credit, as the case may be, meeting the requirements of Section
2.13(b);

     (b)  Warranties True and Correct. In the case of any advance, Borrowing, or
          ---------------------------
issuance or increase of any Letter of Credit that increases the aggregate amount
of Loans and L/C Obligations outstanding after giving effect to such advance,
Borrowing or issuance or increase, each of the representations and warranties of
the Borrower and its Subsidiaries set forth herein and in the other Credit
Documents shall be true and correct in all material respects as of the time of
such advance, Borrowing, or issuance or increase of any Letter of Credit, except
as a result of the transactions expressly permitted hereunder or thereunder and
except to the extent that any such representation or warranty relates solely to
an earlier date, in which case it shall have been true and correct in all
material respects as of such earlier date;

     (c)  No Default.  No Default or Event of Default shall have occurred and be
          ----------
continuing or would occur as a result of such Borrowing; and

     (d)  Regulations U and X. The Borrowing to be made by the Borrower shall
          -------------------
not result in the Borrower or any Lender or Issuing Bank being in non-compliance
with or in violation of Regulation U or X of the Board of Governors of the
Federal Reserve System.

Each acceptance by the Borrower of an advance of any Loan or of the issuance of,
increase in the amount of, or extension of the expiration date of, a Letter of
Credit shall be deemed to be a representation and warranty by the Borrower on
the date of such acceptance, that all conditions precedent to such Borrowing set
forth in this Section 4.2 and in Section 4.1 with respect to the initial
Borrowings hereunder have (except to the extent waived in accordance with the
terms hereof) been satisfied or fulfilled unless the Borrower gives to the
Administrative Agent and the Lenders written notice to the contrary, in which
case none of the Lenders shall be required to fund such Loans and the Issuing
Bank shall not be required to issue, increase the amount of or extend the
expiration date of such Letter of Credit, unless the Required Lenders shall have
previously waived in writing such non-compliance.

                                       42
<PAGE>

ARTICLE 5.  REPRESENTATIONS AND WARRANTIES.

     The Borrower represents and warrants to each Lender, Issuing Bank and
Administrative Agent as follows:

     Section 5.1.  Corporate Organization. The Borrower and each of its
                   ----------------------
material Subsidiaries: (i) is duly organized and existing in good standing under
the laws of the jurisdiction of its organization; (ii) has all necessary company
power and authority to own the property and assets it uses in its business and
otherwise to carry on its present business; and (iii) is duly licensed or
qualified and in good standing in each jurisdiction in which the nature of the
business transacted by it or the nature of the property owned or leased by it
makes such licensing or qualification necessary, except where the failure to be
so licensed or qualified or to be in good standing, as the case may be, would
not have a Material Adverse Effect.

     Section 5.2.  Power and Authority; Validity  .  The Borrower has the
                   -----------------------------
organizational power and authority to execute, deliver and carry out the terms
and provisions of the Credit Documents and has taken all necessary company
action to authorize the execution, delivery and performance of such Credit
Documents. The Borrower has duly executed and delivered each Credit Document and
each such Credit Document constitutes the legal, valid and binding obligation of
the Borrower enforceable against it in accordance with its terms, subject as to
enforcement only to bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors' rights generally and
equitable principles.

     Section 5.3.  No Violation. Neither the execution, delivery or performance
                   ------------
by the Borrower of the Credit Documents nor compliance by it with the terms and
provisions thereof, nor the consummation by it of the transactions contemplated
herein or therein, will (i) contravene in any material respect any applicable
provision of any law, statute, rule or regulation, or any applicable order,
writ, injunction or decree of any court or governmental instrumentality, (ii)
conflict with or result in any breach of any term, covenant, condition or other
provision of, or constitute a default under, or result in the creation or
imposition of (or the obligation to create or impose) any Lien other than any
Permitted Lien upon any of the property or assets of the Borrower or any of its
Subsidiaries under, the terms of any material contractual obligation to which
the Borrower or any of its Subsidiaries is a party or by which they or any of
their properties or assets are bound or to which they may be subject, or (iii)
violate or conflict with any provision of the Memorandum and Articles of
Association, charter, articles or certificate of incorporation, partnership or
limited liability company agreement, by-laws, or other applicable governance
documents of the Borrower or any of its Subsidiaries.

     Section 5.4.  Litigation.  There are no actions, suits, proceedings or
                   ----------
counterclaims (including, without limitation, derivative or injunctive actions)
pending or, to the knowledge of the Borrower, threatened against the Borrower or
any of its Subsidiaries that are reasonably likely to have a Material Adverse
Effect.

     Section 5.5.  Use of Proceeds; Margin Regulations.
                   -----------------------------------

                                       43
<PAGE>

     (a)  Use of Proceeds. The proceeds of the Loans and the Letters of Credit
          ---------------
shall only be used for general corporate purposes of the Borrower and its
Subsidiaries.

     (b)  Margin Stock. Neither the Borrower nor any of its Subsidiaries is
          ------------
engaged in the business of extending credit for the purpose of purchasing or
carrying margin stock. No proceeds of the Loans or the Letters of Credit will be
used for a purpose which violates Regulations T, U or X of the Board of
Governors of the Federal Reserve System. After application of the proceeds of
the Loans, the issuance of the Letters of Credit, and any acquisitions permitted
hereunder, less than 25% of the assets of each of the Borrower and its
Subsidiaries consists of "margin stock" (as defined in Regulation U of the Board
of Governors of the Federal Reserve System).

     Section 5.6.  Investment Company Act. Neither the Borrower nor any of its
                   ----------------------
Subsidiaries is an "investment company" or a company "controlled" by an
"investment company," within the meaning of the Investment Company Act of 1940,
as amended.

     Section 5.7.  Public Utility Holding Company Act. Neither the Borrower nor
                   ----------------------------------
any of its Subsidiaries is a "holding company," or a "subsidiary company" of a
"holding company," or an "affiliate" of a "holding company" or of a "subsidiary
company" of a "holding company," within the meaning of the Public Utility
Holding Company Act of 1935, as amended.

     Section 5.8.  True and Complete Disclosure. All factual information (taken
                   ----------------------------
as a whole) furnished by the Borrower or any of its Subsidiaries in writing to
the Administrative Agent or any Lender in connection with any Credit Document or
the Confidential Information Memorandum or any transaction contemplated therein
did not, as of the date such information was furnished (or, if such information
expressly related to a specific date, as of such specific date), contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein (taken as a whole), in light of the circumstances
under which such information was furnished, not misleading, except for such
statements, if any, as have been updated, corrected, supplemented, superseded or
modified pursuant to a written correction or supplement furnished to the Lenders
prior to the date of this Agreement.

     Section 5.9.  Financial Statements.  The financial statements heretofore
                   --------------------
delivered to the Lenders for the Borrower's fiscal year ending December 31,
1999, and for the Borrower's fiscal quarter and year-to-date period ending
September 30, 2000, have been prepared in accordance with GAAP applied on a
basis consistent, except as otherwise noted therein, with the Borrower's
financial statements for the previous fiscal year. Such annual and quarterly
financial statements fairly present on a consolidated basis the financial
position of the Borrower as of the dates thereof, and the results of operations
for the periods indicated, subject in the case of interim financial statements,
to normal year-end audit adjustments and omission of certain footnotes (as
permitted by the SEC). As of the Effective Date, the Borrower and its
Subsidiaries, considered as a whole, had no material contingent liabilities or
material Indebtedness required under GAAP to be disclosed in a consolidated
balance sheet of the Borrower that were not disclosed in the financial
statements referred to in this Section 5.9 or in the notes thereto or disclosed
in writing to the Administrative Agent (with a request to the Administrative
Agent to distribute such disclosure to the Lenders).

                                       44
<PAGE>

     Section 5.10.  No Material Adverse Change. There has occurred no event or
                    --------------------------
effect that has had or could reasonably be expected to have a Material Adverse
Effect.

     Section 5.11.  Labor Controversies. There are no labor controversies
                    -------------------
pending or, to the best knowledge of the Borrower, threatened against the
Borrower or any of its Subsidiaries that could reasonably be expected to have a
Material Adverse Effect.

     Section 5.12.  Taxes. The Borrower and its Subsidiaries have filed all
                    -----
United States federal income tax returns, and all other material tax returns
required to be filed, whether in the United States or in any foreign
jurisdiction, and have paid all governmental taxes, rates, assessments, fees,
charges and levies (collectively, "Taxes") shown to be due and payable on such
returns or on any assessments made against Borrower and its Subsidiaries or any
of their properties (other than any such assessments, fees, charges or levies
that are not more than ninety (90) days past due, or which can thereafter be
paid without penalty, or which are being contested in good faith by appropriate
proceedings and for which reserves have been provided in conformity with GAAP,
or which the failure to pay could not reasonably be expected to have a Material
Adverse Effect).

     Section 5.13.  ERISA. With respect to each Plan, the Borrower and its
                    -----
Subsidiaries have fulfilled their obligations under the minimum funding
standards of, and are in compliance in all material respects with, ERISA and
with the Code to the extent applicable to it, and have not incurred any
liability under Title IV of ERISA to the PBGC other than a liability to the PBGC
for premiums under Section 4007 of ERISA, except as described in Schedule 5.13
                                                                 -------------
and in each case with such exceptions as could not reasonably be expected to
have a Material Adverse Effect.  As of the Effective Date, neither the Borrower
nor any of its Subsidiaries has any material contingent liability with respect
to any post-retirement benefits under a welfare plan subject to ERISA, other
than liability for continuation coverage described in Part 6 of Title I of ERISA
and as disclosed in the financial statements of the Borrower for the fiscal
quarter ending September 30, 2000, described in Section 5.9, or any other
liability that could not reasonably be expected to have a Material Adverse
Effect.

     Section 5.14.  Consents. On the Initial Availability Date, all consents and
                    --------
approvals of, and filings and registrations with, and all other actions of, all
governmental agencies, authorities or instrumentalities required to have been
obtained or made by the Borrower in order to obtain the Loans and Letters of
Credit hereunder have been or will have been obtained or made and are or will be
in full force and effect.

     Section 5.15.  Insurance. The Borrower and its material Subsidiaries
                    ---------
currently maintain in effect, with responsible insurance companies, insurance
against any loss or damage to all insurable property and assets owned by it,
which insurance is of a character and in or in excess of such amounts as are
customarily maintained by companies similarly situated and operating like
property or assets (subject to self-insured retentions and deductibles), and
insurance with respect to employers' and public and product liability risks
(subject to self-insured retentions and deductibles).

                                       45
<PAGE>

     Section 5.16.  Intellectual Property. The Borrower and its Subsidiaries own
                    ---------------------
or hold valid licenses to use all the patents, trademarks, permits, service
marks, and trade names that are necessary to the operation of the business of
the Borrower and its Subsidiaries as presently conducted, except where the
failure to own, or hold valid licenses to use, such patents, trademarks,
permits, service marks, and trade names could not reasonably be expected to have
a Material Adverse Effect.

     Section 5.17.  Ownership of Property. The Borrower and its Subsidiaries
                    ---------------------
have good title to or a valid leasehold interest in all of their real property
and good title to, or a valid leasehold interest in, all of their other
property, subject to no Liens except Permitted Liens, except where the failure
to have such title or leasehold interest in such property could not reasonably
be expected to have a Material Adverse Effect.

     Section 5.18.  Compliance with Statutes, Etc. The Borrower and its
                    ------------------------------
Subsidiaries are in compliance with all applicable statutes, regulations and
orders of, and all applicable restrictions imposed by, all governmental bodies,
domestic and foreign, in respect of the conduct of their businesses and the
ownership of their properties, except for such instances of non-compliance as
could not reasonably be expected to, individually or in the aggregate, have a
Material Adverse Effect.

     Section 5.19.  Environmental Matters.
                    ---------------------

     (a)  Compliance with Environmental Laws. Except as described in Schedule
          ----------------------------------                         --------
5.19, the Borrower and its Subsidiaries are in compliance with all applicable
----
Environmental Laws and the requirements of any permits issued under such
Environmental Laws, except for such instances of non-compliance as could not
reasonably be expected to have a Material Adverse Effect. To the best knowledge
of the Borrower, there are no pending, past or threatened Environmental Claims
against the Borrower or any of its Subsidiaries on any property owned or
operated by the Borrower or any of its Subsidiaries except as described in
Schedule 5.19 or except as could not reasonably be expected to have a Material
-------------
Adverse Effect. To the best knowledge of the Borrower, there are no conditions
or occurrences on any property owned or operated by the Borrower or any of its
Subsidiaries or on any property adjoining or in the vicinity of any such
property that could reasonably be expected to form the basis of an Environmental
Claim against the Borrower or any of its Subsidiaries or any such property that
individually or in the aggregate could reasonably be expected to have a Material
Adverse Effect.

     (b)  Hazardous Materials. To the best of the Borrower's knowledge, (i)
          -------------------
Hazardous Materials have not at any time been generated, used, treated or stored
on, or transported to or from, any property owned or operated by the Borrower or
any of its Subsidiaries in a manner that has violated or could reasonably be
expected to violate any Environmental Law, and (ii) Hazardous Materials have not
at any time been released on or from any property owned or operated by the
Borrower or any of its Subsidiaries, in the case of both (i) and (ii), with such
exceptions as could not reasonably be expected to have a Material Adverse
Effect.

     Section 5.20.  Existing Indebtedness. Schedule 5.20 contains a complete and
                    ---------------------  -------------
accurate list of all Indebtedness outstanding as of the Effective Date, with
respect to the Borrower and its

                                       46
<PAGE>

Subsidiaries, in each case in a principal amount of $20,000,000 or more (other
than the Obligations hereunder and Indebtedness permitted by Section 6.11(b)
through (k)) and permitted by Section 6.11(a), in each case showing the
aggregate principal amount thereof, the name of the respective borrower and any
other entity which directly or indirectly guaranteed such Indebtedness, and the
scheduled payments of such Indebtedness.

     Section 5.21.  Existing Liens. Schedule 5.21 contains a complete and
                    --------------  -------------
accurate list of all Liens outstanding as of the Effective Date, with respect to
the Borrower and its Subsidiaries where the Indebtedness or other obligations
secured by such Lien is in a principal amount of $20,000,000 or more (other than
the Liens permitted by Section 6.10(b) through (r)), and permitted by Section
6.10(a), in each case showing the name of the Person whose assets are subject to
such Lien, the aggregate principal amount of the Indebtedness secured thereby,
and a description of the Agreements or other instruments creating, granting, or
otherwise giving rise to such Lien.

ARTICLE 6.  COVENANTS.

     The Borrower covenants and agrees that, so long as any Loan, Note,
Commitment, or L/C Obligation is outstanding hereunder, or any other Obligation
is due and payable hereunder:

     Section 6.1.   Corporate Existence. Each of the Borrower and its material
                    -------------------
Subsidiaries will preserve and maintain its organizational existence, except (i)
for the dissolution of any material Subsidiaries whose assets are transferred to
the Borrower or any of its Subsidiaries, (ii) where the failure to preserve,
renew or keep in full force and effect the existence of any Subsidiary could not
reasonably be expected to have a Material Adverse Effect, or (iii) as otherwise
expressly permitted in this Agreement.

     Section 6.2.   Maintenance. Each of the Borrower and its material
                    -----------
Subsidiaries will maintain, preserve and keep its properties and equipment
necessary to the proper conduct of its business in reasonably good repair,
working order and condition (normal wear and tear excepted) and will from time
to time make all reasonably necessary repairs, renewals, replacements, additions
and betterments thereto so that at all times such properties and equipment are
reasonably preserved and maintained, in each case with such exceptions as could
not, individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect; provided, however, that nothing in this Section 6.2 shall
prevent the Borrower or any material Subsidiary from discontinuing the operation
or maintenance of any such properties or equipment if such discontinuance is, in
the judgment of the Borrower or any material Subsidiary, as applicable,
desirable in the conduct of their businesses.

     Section 6.3.   Taxes. Each of the Borrower and its Subsidiaries will duly
                    -----
pay and discharge all Taxes upon or against it or its properties before
penalties accrue thereon (or, if later, within ninety (90) days of becoming past
due), unless and to the extent that (i) the same is being contested in good
faith and by appropriate proceedings and reserves have been established in
conformity with GAAP, or (ii) the failure to effect such payment or discharge
could not reasonably be expected to have a Material Adverse Effect.

                                       47
<PAGE>

     Section 6.4.   ERISA. Each of the Borrower and its Subsidiaries will timely
                    -----
pay and discharge all obligations and liabilities arising under ERISA or
otherwise with respect to each Plan of a character which if unpaid or
unperformed might result in the imposition of a material Lien against any
properties or assets of the Borrower or any material Subsidiary and will
promptly notify the Administrative Agent upon an officer of the Borrower
becoming aware thereof, of (i) the occurrence of any reportable event (as
defined in ERISA) relating to a Plan (other than a multi-employer plan, as
defined in ERISA), so long as the event thereunder could reasonably be expected
to have a Material Adverse Effect, other than any such event with respect to
which the PBGC has waived notice by regulation; (ii) receipt of any notice from
PBGC of its intention to seek termination of any Plan or appointment of a
trustee therefor; (iii) Borrower's or any of its Subsidiaries' intention to
terminate or withdraw from any Plan if such termination or withdrawal would
result in liability under Title IV of ERISA, unless such termination or
withdrawal could not reasonably be expected to have a Material Adverse Effect;
and (iv) the receipt by the Borrower or its Subsidiaries of notice of the
occurrence of any event that could reasonably be expected to result in the
incurrence of any liability (other than for benefits), fine or penalty to the
Borrower and/or to the Borrower's Subsidiaries, or any plan amendment that could
reasonably be expected to increase the contingent liability of the Borrower and
its Subsidiaries, taken as a whole, in connection with any post-retirement
benefit under a welfare plan (subject to ERISA), unless such event or amendment
could not reasonably be expected to have a Material Adverse Effect. The Borrower
will also promptly notify the Administrative Agent of (i) any material
contributions to any Foreign Plan that have not been made by the required due
date for such contribution if such default could reasonably be expected to have
a Material Adverse Effect; (ii) any Foreign Plan that is not funded to the
extent required by the law of the jurisdiction whose law governs such Foreign
Plan based on the actuarial assumptions reasonably used at any time if such
underfunding (together with any penalties likely to result) could reasonably be
expected to have a Material Adverse Effect, and (iii) any material change
anticipated to any Foreign Plan that could reasonably be expected to have a
Material Adverse Effect.

     Section 6.5.   Insurance. Each of the Borrower and its material
                    ---------
Subsidiaries will maintain or cause to be maintained, with responsible insurance
companies, insurance against any loss or damage to all insurable property and
assets owned by it, such insurance to be of a character and in or in excess of
such amounts as are customarily maintained by companies similarly situated and
operating like property or assets (subject to self-insured retentions and
deductibles) and will (subject to self-insured retentions and deductibles)
maintain or cause to be maintained insurance with respect to employers' and
public and product liability risks.

     Section 6.6.   Financial Reports and Other Information.
                    ---------------------------------------

     (a)  Periodic Financial Statements and Other Documents. The Borrower, its
          -------------------------------------------------
Subsidiaries and any SPVs will maintain a system of accounting in such manner as
will enable preparation of financial statements in accordance with GAAP and will
furnish to the Lenders and their respective authorized representatives such
information about the business and financial condition of the Borrower, its
Subsidiaries and any SPVs as any Lender may reasonably request; and, without any
request, will furnish to the Administrative Agent:

                                       48
<PAGE>

          (i)   within sixty (60) days after the end of each of the first three
     (3) fiscal quarters of each fiscal year of the Borrower, the consolidated
     balance sheet of the Borrower and its Subsidiaries as at the end of such
     fiscal quarter and the related consolidated statements of income and
     retained earnings and of cash flows for such fiscal quarter and for the
     portion of the fiscal year ended with the last day of such fiscal quarter,
     all of which shall be in reasonable detail or in the form filed with the
     SEC, and certified by the chief financial officer of the Borrower that they
     fairly present the financial condition of the Borrower and its Subsidiaries
     as of the dates indicated and the results of their operations and changes
     in their cash flows for the periods indicated and that they have been
     prepared in accordance with GAAP, in each case, subject to normal year-end
     audit adjustments and the omission of any footnotes as permitted by the SEC
     (delivery to the Administrative Agent of a copy of the Borrower's Form 10-Q
     filed with the SEC (without exhibits) in any event will satisfy the
     requirements of this subsection subject to Section 6.6(b));

          (ii)  within one hundred twenty (120) days after the end of each
     fiscal year of the Borrower, the consolidated balance sheet of the Borrower
     and its Subsidiaries as at the end of such fiscal year and the related
     consolidated statements of income and retained earnings and of cash flows
     for such fiscal year and setting forth consolidated comparative figures as
     of the end of and for the preceding fiscal year, audited by an independent
     nationally-recognized accounting firm and in the form filed with the SEC
     (delivery to the Administrative Agent of a copy of the Borrower's Form 10-K
     filed with the SEC (without exhibits) in any event will satisfy the
     requirements of this subsection subject to Section 6.6(b));

          (iii) commencing with fiscal year 2001, to the extent actually
     prepared and approved by the Borrower's board of directors, a projection of
     Borrower's consolidated balance sheet and consolidated income, retained
     earnings and cash flows for its current fiscal year showing such projected
     budget for each fiscal quarter of the Borrower ending during such year; and

          (iv)  within ten (10) days after the sending or filing thereof, copies
     of all financial statements, projections, documents and other
     communications that the Borrower sends to its stockholders generally or
     files with the SEC or any similar governmental authority (and is publicly
     available).

The Administrative Agent will forward promptly to the Lenders the information
provided by the Borrower pursuant to (i) through (iv) above.

     (b)  Compliance Certificates. Each financial statement furnished to the
          -----------------------
Lenders pursuant to subsections (i) and (ii) of Section 6.6(a) shall be (i)
accompanied by additional information setting forth calculations excluding the
effects of any SPVs and containing such calculations for any SPVs as reasonably
requested by the Administrative Agent, and (ii) accompanied by (x) a written
certificate signed by the Borrower's chief financial officer (or other financial
officer of the Borrower), in his or her capacity as such, to the effect that no
Default or Event of Default then exists or, if any such Default or Event of
Default exists as of the date of

                                       49
<PAGE>

such certificate, setting forth a description of such Default or Event of
Default and specifying the action, if any, taken by the Borrower to remedy the
same, and (y) a Compliance Certificate in the form of Exhibit 6.6 showing the
                                                      -----------
Borrower's compliance with certain of the covenants set forth herein.

     (c)  Management Letters. Promptly upon receipt thereof, the Borrower will
          ------------------
provide the Administrative Agent with a copy of each report or "management
letter" submitted to the Borrower by its independent accountants or auditors in
connection with any annual, interim or special audit made by them of the books
and records of the Borrower.

     (d)  Notice of Events Relating to Environmental Laws and Claims. Promptly
          ----------------------------------------------------------
after any officer of the Borrower obtains knowledge of any of the following, the
Borrower will provide the Administrative Agent with written notice in reasonable
detail of any of the following that, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect:

          (i)   any pending or threatened Environmental Claim against the
     Borrower, any of its Subsidiaries or any SPV or any property owned or
     operated by the Borrower, any of its Subsidiaries or any SPV;

          (ii)  any condition or occurrence on any property owned or operated by
     the Borrower, any of its Subsidiaries or any SPV that results in
     noncompliance by the Borrower, any of its Subsidiaries or any SPV with any
     Environmental Law; and

          (iii) the taking of any material remedial action in response to the
     actual or alleged presence of any Hazardous Material on any property owned
     or operated by the Borrower, any of its Subsidiaries or any SPV other than
     in the ordinary course of business.

     (e)  Notices of Default, Litigation, Etc. The Borrower will promptly, and
          -----------------------------------
in any event within five (5) Days, after an officer of the Borrower has
knowledge thereof, give written notice to the Administrative Agent of (who will
in turn provide notice to the Lenders of): (i) the occurrence of any Default or
Event of Default; (ii) any litigation or governmental proceeding of the type
described in Section 5.4; (iii) any circumstance that has had or could
reasonably be expected to have a Material Adverse Effect; (iv) the occurrence of
any event which has resulted in a breach of, or is likely to result in a breach
of, Sections 6.16 or 6.17; and (v) any notice received by it, any Subsidiary or
any SPV from the holder(s) of Indebtedness of the Borrower, any Subsidiary or
any SPV in an amount which, in the aggregate, exceeds $30,000,000, where such
notice states or claims the existence or occurrence of any default or event of
default with respect to such Indebtedness under the terms of any indenture, loan
or credit agreement, debenture, note, or other document evidencing or governing
such Indebtedness.

     Section 6.7.   Lender Inspection Rights. Upon reasonable notice from the
                    ------------------------
Administrative Agent or any Lender, the Borrower will permit the Administrative
Agent or any Lender (and such Persons as the Administrative Agent or such Lender
may reasonably designate) during normal business hours at such entity's sole
expense unless a Default or Event of Default

                                       50
<PAGE>

shall have occurred and be continuing, in which event at the Borrower's expense,
to visit and inspect any of the properties of the Borrower or any of its
Subsidiaries, to examine all of their books and records, to make copies and
extracts therefrom, and to discuss their respective affairs, finances and
accounts with their respective officers and independent public accountants (and
by this provision the Borrower authorizes such accountants to discuss with the
Administrative Agent and any Lender (and such Persons as the Administrative
Agent or such Lender may reasonably designate) the affairs, finances and
accounts of the Borrower and its Subsidiaries), all as often, and to such
extent, as may be reasonably requested. The chief financial officer of the
Borrower and/or his or her designee shall be afforded the opportunity to be
present at any meeting of the Administrative Agent or the Lenders and such
accountants. The Administrative Agent agrees to use reasonable efforts to
minimize, to the extent practicable, the number of separate requests from the
Lenders to exercise their rights under this Section 6.7 and/or Section 6.6 and
to coordinate the exercise by the Lenders of such rights.

     Section 6.8.   Conduct of Business. The Borrower and its Subsidiaries will
                    -------------------
at all times remain primarily engaged in (i) the contract drilling business,
(ii) the provision of services to the energy industry, (iii) other existing
businesses described in the Borrower's current SEC reports and in the
Transocean/R&B Falcon Joint Proxy Statement, or (iv) any related businesses
(each a "Permitted Business").

     Section 6.9.   Restrictions on Fundamental Changes. The Borrower shall not
                    -----------------------------------
merge or consolidate with any other Person, or cause or permit any dissolution
of the Borrower or liquidation of its assets, or sell, transfer or otherwise
dispose of all or substantially all of the Borrower's assets, except that:

     (a)  The Borrower or any of its Subsidiaries may merge into, or consolidate
with, any other Person if upon the consummation of any such merger or
consolidation the Borrower or such Subsidiary is the surviving corporation to
any such merger or consolidation (or the other Person is, or will thereby
become, a Subsidiary of the Borrower); and

     (b)  The Borrower may sell or transfer all or substantially all of its
assets (including stock in its Subsidiaries) to any Person if such Person is a
Subsidiary of the Borrower (or a Person who will contemporaneously therewith
become a Subsidiary of the Borrower);

provided in the case of any transaction described in the preceding clauses (a)
and (b), no Default or Event of Default shall exist immediately prior to, or
after giving effect to, such transaction.

     Section 6.10.  Liens. The Borrower and its Subsidiaries shall not create,
                    -----
incur, assume or suffer to exist any Lien of any kind on any property or asset
of any kind of the Borrower or any Subsidiary, except the following
(collectively, the "Permitted Liens"):

     (a)  Liens existing on the date hereof (each such Lien, to the extent it
secures Indebtedness or other obligations in an aggregate amount of $20,000,000
or more, being described on Schedule 5.21 attached hereto);
                            -------------

                                       51
<PAGE>

     (b)  Liens arising in the ordinary course of business by operation of law,
deposits, pledges or other Liens in connection with workers' compensation,
unemployment insurance, old age benefits, social security obligations, taxes,
assessments, public or statutory obligations or other similar charges, good
faith deposits, pledges or other Liens in connection with (or to obtain letters
of credit in connection with) bids, performance, return-of-money or payment
bonds, contracts or leases to which the Borrower or its Subsidiaries are parties
or other deposits required to be made in the ordinary course of business;
provided that in each case the obligation secured is not for Indebtedness for
borrowed money and is not overdue or, if overdue, is being contested in good
faith by appropriate proceedings and reserves in conformity with GAAP have been
provided therefor;

     (c)  mechanics', workmen's, materialmen's, landlords', carriers' or other
similar Liens arising in the ordinary course of business (or deposits to obtain
the release of such Liens) related to obligations not overdue for more than
thirty (30) days if such Liens arise with respect to domestic assets and for
more than ninety (90) days if such Liens arise with respect to foreign assets,
or, if so overdue, that are being contested in good faith by appropriate
proceedings and reserves in conformity with GAAP have been provided therefor, or
if such Liens otherwise could not reasonably be expected to have a Material
Adverse Effect;

     (d)  Liens for Taxes not more than ninety (90) days past due or which can
thereafter be paid without penalty or which are being contested in good faith by
appropriate proceedings and reserves in conformity with GAAP have been provided
therefor, or if such Liens otherwise could not reasonably be expected to have a
Material Adverse Effect;

     (e)  Liens imposed by ERISA (or comparable foreign laws) which are being
contested in good faith by appropriate proceedings and reserves in conformity
with GAAP have been provided therefor, or if such Liens otherwise could not
reasonably be expected to have a Material Adverse Effect;

     (f)  Liens arising out of judgments or awards against the Borrower or any
of its Subsidiaries, or in connection with surety or appeal bonds or the like in
connection with bonding such judgments or awards, the time for appeal from which
or petition for rehearing of which shall not have expired or for which the
Borrower or such Subsidiary shall be prosecuting on appeal or proceeding for
review, and for which it shall have obtained (within thirty (30) days with
respect to a judgment or award rendered in the United States or within sixty
(60) days with respect to a judgment or award rendered in a foreign jurisdiction
after entry of such judgment or award or expiration of any previous such stay,
as applicable) a stay of execution or the like pending such appeal or proceeding
for review; provided, that the aggregate amount of uninsured or underinsured
liabilities (net of customary deductibles, and including interest, costs, fees
and penalties, if any) of the Borrower and its Subsidiaries secured by such
Liens shall not exceed $50,000,000 at any one time outstanding;

     (g)  Liens on fixed or capital assets and related inventory and intangible
assets acquired, constructed, improved, altered or repaired by the Borrower or
any Subsidiary; provided that (i) such Liens secure Indebtedness otherwise
permitted by this Agreement, (ii) such Liens and the Indebtedness secured
thereby are incurred prior to or within 365 days after such

                                       52
<PAGE>

acquisition or the later of the completion of such construction, improvement,
alteration or repair or the date of commercial operation of the assets
constructed, improved, altered or repaired, (iii) the Indebtedness secured
thereby does not exceed the cost of acquiring, constructing, improving, altering
or repairing such fixed or capital assets, as the case may be, and (iv) such
Lien shall not apply to any other property or assets of the Borrower or any
Subsidiary;

     (h)  Liens securing Interest Rate Protection Agreements or foreign exchange
hedging obligations incurred in the ordinary course of business and not for
speculative purposes;

     (i)  Liens on property existing at the time such property is acquired by
the Borrower or any Subsidiary of the Borrower and not created in contemplation
of such acquisition (or on repairs, renewals, replacements, additions,
accessions and betterments thereto), and Liens on the assets of any Person at
the time such Person becomes a Subsidiary of the Borrower and not created in
contemplation of such Person becoming a Subsidiary of the Borrower (or on
repairs, renewals, replacements, additions, accessions and betterments thereto;

     (j)  any extension, renewal or replacement (or successive extensions,
renewals or replacements) in whole or in part of any Lien referred to in the
foregoing subsections (a) through (i), provided, however, that the principal
amount of Indebtedness secured thereby does not exceed the principal amount
secured at the time of such extension, renewal or replacement (other than
amounts incurred to pay costs of such extension, renewal or replacement), and
that such extension, renewal or replacement is limited to the property already
subject to the Lien so extended, renewed or replaced (together with accessions
and improvements thereto and replacements thereof);

     (k)  rights reserved to or vested in any municipality or governmental,
statutory or public authority by the terms of any right, power, franchise,
grant, license or permit, or by any provision of law, to terminate such right,
power, franchise, grant, license or permit or to purchase, condemn, expropriate
or recapture or to designate a purchaser of any of the property of a Person;

     (l)  rights reserved to or vested in any municipality or governmental,
statutory or public authority to control, regulate or use any property of a
Person;

     (m)  rights of a common owner of any interest in property held by a Person
and such common owner as tenants in common or through other common ownership;

     (n)  encumbrances (other than to secure the payment of Indebtedness),
easements, restrictions, servitudes, permits, conditions, covenants, exceptions
or reservations in any property or rights-of-way of a Person for the purpose of
roads, pipelines, transmission lines, transportation lines, distribution lines,
removal of gas, oil, coal, metals, steam, minerals, timber or other natural
resources, and other like purposes, or for the joint or common use of real
property, rights-of-way, facilities or equipment, or defects, irregularity and
deficiencies in title of any property or rights-of-way;

                                       53
<PAGE>

     (o)  Liens created by or resulting from zoning, planning and environmental
laws and ordinances and municipal regulations;

     (p)  Liens created by or resulting from financing statements filed by
lessors of property (but only with respect to the property so leased);

     (q)  Liens on property securing Non-recourse Debt;

     (r)  Liens on the stock or assets of SPVs; and

     (s)  Liens (not otherwise permitted by this Section 6.10) on property
securing Indebtedness (or other obligations) not exceeding $175,000,000 in the
aggregate at any time outstanding.

     Section 6.11.  Indebtedness. The Borrower and its Subsidiaries shall not
                    ------------
incur, assume or suffer to exist any Indebtedness, except:

     (a)  existing Indebtedness outstanding on the Effective Date (such
Indebtedness, to the extent the principal amount thereof is $20,000,000 or more,
being described on Schedule 5.20 attached hereto), and any subsequent
                   -------------
extensions, renewals or refinancings thereof so long as such Indebtedness is not
increased in amount (other than amounts incurred to pay costs of such extension,
renewal or refinancing), the scheduled maturity date thereof (if prior to the
Maturity Date) is not accelerated, the interest rate per annum applicable
thereto is not increased, any scheduled amortization of principal thereunder
prior to the Maturity Date is not shortened and the payments thereunder are not
increased;

     (b)  Indebtedness under the Credit Documents;

     (c)  intercompany loans and advances to the Borrower or its Subsidiaries,
and intercompany loans and advances from any of such Subsidiaries or SPVs to the
Borrower or any other Subsidiaries of the Borrower;

     (d)  Indebtedness under any Interest Rate Protection Agreements and under
foreign exchange futures agreements, arrangements or options designed to protect
against fluctuations in currency exchange rates;

     (e)  Indebtedness of the Borrower that may be incurred, assumed or suffered
to exist without violating any section of this Agreement, including, without
limitation, Sections 6.16 and 6.17 hereof;

     (f)  Indebtedness of any Subsidiary of the Borrower (i) under unsecured
lines of credit for overdrafts or for working capital purposes in foreign
countries with financial institutions, and (ii) arising from the honoring by a
bank or other Person of a check, draft or similar instrument inadvertently
drawing against insufficient funds, all such Indebtedness not to exceed
$100,000,000 in the aggregate at any time outstanding, provided that amounts
under overdraft

                                       54
<PAGE>

lines of credit or outstanding as a result of drawings against insufficient
funds shall be outstanding for one (1) Business Day before being included in
such aggregate amount;

     (g)  Indebtedness of a Person existing at the time such Person becomes a
Subsidiary of the Borrower or is merged with or into the Borrower or any
Subsidiary of the Borrower and not incurred in contemplation of such
transaction;

     (h)  Indebtedness of the Borrower or any Subsidiary of the Borrower (i)
under Performance Guaranties and Performance Letters of Credit, and (ii) with
respect to letters of credit issued in the ordinary course of business;

     (i)  Indebtedness of any Subsidiaries of the Borrower in an aggregate
principal amount for all Subsidiaries not to exceed an amount equal to ten
percent (10%) of Consolidated Net Assets (the "Subsidiary Debt Basket Amount")
in the aggregate at any time outstanding;

     (j)  other Indebtedness of any Subsidiary of the Borrower so long as such
Subsidiary has in force a Subsidiary Guaranty in substantially the form of
Exhibit 6.11, provided that such Subsidiary Guaranty shall contain a provision
------------
that such Subsidiary Guaranty and all obligations thereunder of the Guarantor
party thereto shall be terminated upon delivery to the Administrative Agent by
the Borrower of a certificate stating that (x) the aggregate principal amount of
Indebtedness of all Subsidiaries outstanding pursuant to the preceding clause
(i) and this clause (j) is equal to or less than the Subsidiary Debt Basket
Amount, and (y) no Default or Event of Default has occurred and is continuing;
and

     (k)  extensions, renewals or replacements of Indebtedness permitted by this
Section 6.11 that do not increase the amount of such Indebtedness (other than
amounts incurred to pay costs of such extension, renewal or refinancing).

     Section 6.12.  Use of Property and Facilities; Environmental Laws. The
                    --------------------------------------------------
Borrower and its Subsidiaries shall comply in all material respects with all
Environmental Laws applicable to or affecting the properties or business
operations of the Borrower or any Subsidiary of the Borrower, where the failure
to comply could reasonably be expected to have a Material Adverse Effect.

     Section 6.13.  Transactions with Affiliates. Except as otherwise
                    ----------------------------
specifically permitted herein, the Borrower and its Subsidiaries shall not
(except pursuant to contracts outstanding as of (i) with respect to the
Borrower, the Effective Date or (ii) with respect to any Subsidiary of the
Borrower, the Effective Date or, if later, the date such Subsidiary first became
a Subsidiary of the Borrower) enter into or engage in any material transaction
or arrangement or series of related transactions or arrangements which in the
aggregate would be material with any Controlling Affiliate, including without
limitation, the purchase from, sale to or exchange of property with, any merger
or consolidation with or into, or the rendering of any service by or for, any
Controlling Affiliate, except pursuant to the requirements of the Borrower's or
such Subsidiary's business and unless such transaction or arrangement or series
of related transactions or arrangements, taken as a whole, are no less favorable
to the Borrower or such Subsidiary (other

                                       55
<PAGE>

than a wholly owned Subsidiary) than would be obtained in an arms' length
transaction with a Person not a Controlling Affiliate.

     Section 6.14.  Sale and Leaseback Transactions.  The Borrower will not, and
                    -------------------------------
will not permit any of its Subsidiaries to, enter into, assume, or suffer to
exist any Sale-Leaseback Transaction, except any such transaction that may be
entered into, assumed or suffered to exist without violating any other provision
of this Agreement, including without limitation, Sections 6.16 and 6.17.

     Section 6.15.  Compliance with Laws.  Without limiting any of the other
                    --------------------
covenants of the Borrower in this Article 6, the Borrower and its Subsidiaries
shall conduct their business, and otherwise be, in compliance with all
applicable laws, regulations, ordinances and orders of any governmental or
judicial authorities; provided, however, that this Section 6.15 shall not
require the Borrower or any Subsidiary of the Borrower to comply with any such
law, regulation, ordinance or order if (x) it shall be contesting such law,
regulation, ordinance or order in good faith by appropriate proceedings and
reserves in conformity with GAAP have been provided therefor, or (y) the failure
to comply therewith could not reasonably be expected to have a Material Adverse
Effect.

     Section 6.16.  Interest Coverage Ratio.  The Borrower will not permit the
                    -----------------------
Interest Coverage Ratio as of the end of any fiscal quarter of the Borrower to
be less than 3:00 to 1:00.

     Section 6.17.  Indebtedness to Total Capitalization Ratio.  The Borrower
                    ------------------------------------------
will maintain, as of the end of each fiscal quarter of the Borrower, a ratio
(expressed as a percentage) of Consolidated Indebtedness to Total Capitalization
of no greater than 40%.

ARTICLE 7.  EVENTS OF DEFAULT AND REMEDIES.

     Section 7.1.   Events of Default.  Any one or more of the following shall
                    -----------------
constitute an Event of Default:

     (a)  default by the Borrower in the payment of any principal amount of any
Loan or Reimbursement Obligation, any interest thereon or any fees payable
hereunder, within two (2) Business Days following the date when due;

     (b)  default by the Borrower in the observance or performance of any
covenant set forth in Sections 6.9, 6.10, 6.16, or 6.17;

     (c)  default by the Borrower in the observance or performance of any
provision hereof or of any other Credit Document not mentioned in clauses (a) or
(b) above, which is not remedied within thirty (30) days after notice thereof to
the Borrower by the Administrative Agent;

     (d)  any representation or warranty made or deemed made herein or in any
other Credit Document by the Borrower or any Subsidiary proves untrue in any
material respect as of the date of the making, or deemed making, thereof;

                                       56
<PAGE>

     (e)  (x) Indebtedness in the aggregate principal amount of $50,000,000 of
the Borrower and its Subsidiaries ("Material Indebtedness") shall (i) not be
paid at maturity (beyond any applicable grace periods), or (ii) be declared to
be due and payable or required to be prepaid, redeemed or repurchased prior to
its stated maturity, or (y) any default in respect of Material Indebtedness
shall occur which permits the holders thereof, or any trustees or agents on
their behalf, to accelerate the maturity of such Indebtedness or requires such
Indebtedness to be prepaid, redeemed, or repurchased prior to its stated
maturity;

     (f)  the Borrower or any Significant Subsidiary (i) has entered
involuntarily against it an order for relief under the United States Bankruptcy
Code or a comparable action is taken under any bankruptcy or insolvency law of
another country or political subdivision of such country, (ii) generally does
not pay, or admits its inability generally to pay, its debts as they become due,
(iii) makes a general assignment for the benefit of creditors, (iv) applies for,
seeks, consents to, or acquiesces in, the appointment of a receiver, custodian,
trustee, liquidator or similar official for it or any substantial part of its
property under the Bankruptcy Code or under the bankruptcy or insolvency laws of
another country or a political subdivision of such country, (v) institutes any
proceeding seeking to have entered against it an order for relief under the
United States Bankruptcy Code or any comparable law, to adjudicate it insolvent,
or seeking dissolution, winding up, liquidation, reorganization, arrangement,
adjustment or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors or fails to file
an answer or other pleading denying the material allegations of or consents to
or acquiesces in any such proceeding filed against it, (vi) makes any board of
directors resolution in direct furtherance of any matter described in clauses
(i)-(v) above, or (vii) fails to contest in good faith any appointment or
proceeding described in this Section 7.1(f);

     (g)  a custodian, receiver, trustee, liquidator or similar official is
appointed for the Borrower or any Significant Subsidiary or any substantial part
of its property under the Bankruptcy Code or under the bankruptcy or insolvency
laws of another country or a political subdivision of such country, or a
proceeding described in Section 7.1(f)(v) is instituted against the Borrower or
any Significant Subsidiary, and such appointment continues undischarged or such
proceeding continues undismissed and unstayed for a period of sixty (60) days
(or one hundred twenty (120) days in the case of any such event occurring
outside the United States of America);

     (h)  the Borrower or any Subsidiaries of the Borrower fail within thirty
(30) days with respect to any judgments or orders that are rendered in the
United States or sixty (60) days with respect to any judgments or orders that
are rendered in foreign jurisdictions (or such earlier date as any execution on
such judgments or orders shall take place) to vacate, pay, bond or otherwise
discharge any judgments or orders for the payment of money the uninsured portion
of which is in excess of $50,000,000 in the aggregate and which are not stayed
on appeal or otherwise being appropriately contested in good faith in a manner
that stays execution;

     (i)  (x) the Borrower or any Subsidiary of the Borrower fails to pay when
due an amount that it is liable to pay to the PBGC or to a Plan under Title IV
of ERISA; or a notice of intent to terminate a Plan having Unfunded Vested
Liabilities of the Borrower or any of its

                                       57
<PAGE>

Subsidiaries in excess of $30,000,000 (a "Material Plan") is filed under Title
IV of ERISA; or the PBGC institutes proceedings under Title IV of ERISA to
terminate or to cause a trustee to be appointed to administer any Material Plan
or a proceeding is instituted by a fiduciary of any Material Plan against any
Borrower or any Subsidiary to collect any liability under Section 515 or
4219(c)(5) of ERISA, and in each case such proceeding is not dismissed within
thirty (30) days thereafter; or a condition exists by reason of which the PBGC
would be entitled to obtain a decree adjudicating that any Material Plan must be
terminated, and (y) the occurrence of one or more of the matters in the
preceding clause (x) could reasonably be expected to have a Material Adverse
Effect; or

     (j)  any Person or group of Persons acting in concert (as such terms are
used in Rule 13d-5 under the Securities Exchange Act of 1934, as amended) shall
own, directly or indirectly, beneficially or of record, securities of the
Borrower (or other securities convertible into such securities) representing
fifty percent (50%) or more of the combined voting power of all outstanding
securities of the Borrower entitled to vote in the election of directors, other
than securities having such power only by reason of the happening of a
contingency.

     Section 7.2.  Non-Bankruptcy Defaults.  When any Event of Default (other
                   -----------------------
than those described in subsections (f) or (g) of Section 7.1 with respect to
the Borrower) has occurred and is continuing, the Administrative Agent shall, by
notice to the Borrower: (a) if so directed by the Required Lenders, terminate
the remaining Commitments to the Borrower hereunder on the date stated in such
notice (which may be the date thereof); (b) if so directed by the Required
Lenders, declare the principal of and the accrued interest on all outstanding
Loans to be forthwith due and payable and thereupon all outstanding Loans,
including both principal and interest thereon, shall be and become immediately
due and payable together with all other accrued amounts payable under the Credit
Documents without further demand, presentment, protest or notice of any kind,
including, but not limited to, notice of intent to accelerate and notice of
acceleration, each of which is expressly waived by the Borrower; and (c) if so
directed by the Required Lenders, demand that the Borrower immediately pay to
the Administrative Agent (to be held by the Administrative Agent pursuant to
Section 7.4) the full amount then available for drawing under each outstanding
Letter of Credit, and the Borrower agrees to immediately make such payment and
acknowledges and agrees that the Lenders, the Issuing Bank and the
Administrative Agent would not have an adequate remedy at law for failure by the
Borrower to honor any such demand and that the Administrative Agent, for the
benefit of the Lenders and the Issuing Bank, shall have the right to require the
Borrower to specifically perform such undertaking whether or not any drawings or
other demands for payment have been made under any Letter of Credit. The
Administrative Agent, after giving notice to the Borrower pursuant to this
Section 7.2, shall also promptly send a copy of such notice to the other Lenders
and the Issuing Bank, but the failure to do so shall not impair or annul the
effect of such notice.

     Section 7.3.  Bankruptcy Defaults.  When any Event of Default described in
                   -------------------
subsections (f) or (g) of Section 7.1 has occurred and is continuing with
respect to the Borrower, then all outstanding Loans shall immediately become due
and payable together with all other accrued amounts payable under the Credit
Documents without presentment, demand, protest or notice of any kind, each of
which is expressly waived by the Borrower; and all obligations of the Lenders
and the Issuing Bank to extend further credit pursuant to any of the terms
hereof shall

                                       58
<PAGE>

immediately terminate and the Borrower shall immediately pay to the
Administrative Agent (to be held by the Administrative Agent pursuant to Section
7.4) the full amount then available for drawing under all outstanding Letters of
Credit, the Borrower acknowledging that the Lenders, the Issuing Bank, and the
Administrative Agent would not have an adequate remedy at law for failure by the
Borrower to honor any such demand and that the Lenders, the Issuing Bank, and
the Administrative Agent shall have the right to require the Borrower to
specifically perform such undertaking whether or not any drawings or other
demands for payment have been made under any of the Letters of Credit.

     Section 7.4.  Collateral for Undrawn Letters of Credit.
                   ----------------------------------------

     (a)  If the prepayment of the amount available for drawing under any or all
outstanding Letters of Credit is required under Section 7.2 or 7.3, the Borrower
shall forthwith pay the amount required to be so prepaid, to be held by the
Administrative Agent as provided in subsection (b) below.

     (b)  All amounts prepaid pursuant to subsection (a) above shall be held by
the Administrative Agent in a separate collateral account (such account, and the
credit balances, properties and any investments from time to time held therein,
and any substitutions for such account, any certificate of deposit or other
instrument evidencing any of the foregoing and all proceeds of and earnings on
any of the foregoing being collectively called the "Collateral Account") as
security for, and for application to, the reimbursement of any drawing under any
Letter of Credit then or thereafter paid by the Issuing Bank, and to the payment
of the unpaid balance of any Loans and all other due and unpaid Obligations
(collectively, the "Collateralized Obligations"). The Collateral Account shall
be held in the name of and subject to the exclusive dominion and control of the
Administrative Agent, for the benefit of the Issuing Bank, the Administrative
Agent, and the Lenders, as pledgee hereunder. If and when required by the
Borrower, the Administrative Agent shall invest and reinvest funds held in the
Collateral Account from time to time in Cash Equivalents specified from time to
time by the Borrower, provided that the Administrative Agent is irrevocably
authorized to sell on market terms any investments held in the Collateral
Account when and as required to make payments out of the Collateral Account for
application to Collateralized Obligations due and owing from the Borrower to the
Issuing Bank, the Administrative Agent, or the Lenders. When and if (A) (i) the
Borrower shall have made payment of all Collateralized Obligations then due and
payable, and (ii) all relevant preference or other disgorgement periods relating
to the receipt of such payments have passed, or (B) no Default or Event of
Default shall be continuing, the Administrative Agent shall repay to the
Borrower any remaining amounts and assets held in the Collateral Account,
provided that if the Collateral Account is being released pursuant to clause (A)
and any Letter of Credit then remains outstanding, the Borrower, prior to or
contemporaneously with such release, shall make arrangements with respect to
such outstanding Letters of Credit in the manner described in the first sentence
of Section 2.14. In addition, if the aggregate amount on deposit with the
Collateral Agent exceeds the Collateralized Obligations then existing, then the
Administrative Agent shall release and deliver such excess amount upon the
written request of the Borrower.

                                       59
<PAGE>

     Section 7.5.  Notice of Default.  The Administrative Agent shall give
                   -----------------
notice to the Borrower under Section 7.2 promptly upon being requested to do so
by the Required Lenders and shall thereupon notify all the Lenders thereof.

     Section 7.6.  Expenses.  The Borrower agrees to pay to the Administrative
                   --------
Agent, the Issuing Bank, and each Lender all reasonable out-of-pocket expenses
incurred or paid by the Administrative Agent, the Issuing Bank, or such Lender,
including reasonable attorneys' fees and court costs, in connection with any
Default or Event of Default hereunder or in connection with the enforcement of
any of the Credit Documents.

     Section 7.7.  Distribution and Application of Proceeds.  After the
                   ----------------------------------------
occurrence of and during the continuance of an Event of Default, any payment to
the Administrative Agent, the Issuing Bank, or any Lender hereunder or from the
proceeds of the Collateral Account or otherwise shall be paid to the
Administrative Agent to be distributed and applied as follows (unless otherwise
agreed by the Borrower, the Administrative Agent, the Issuing Bank, and all
Lenders):

     (a)  First, to the payment of any and all reasonable out-of-pocket costs
and expenses of the Administrative Agent, including without limitation,
reasonable attorneys' fees and out-of-pocket costs and expenses, as provided by
this Agreement or by any other Credit Document, incurred in connection with the
collection of such payment or in respect of the enforcement of any rights of the
Administrative Agent, the Issuing Bank, or the Lenders under this Agreement or
any other Credit Document;

     (b)  Second, to the payment of any and all reasonable out-of-pocket costs
and expenses of the Issuing Bank and the Lenders, including, without limitation,
reasonable attorneys' fees and out-of-pocket costs and expenses, as provided by
this Agreement or by any other Credit Document, incurred in connection with the
collection of such payment or in respect of the enforcement of any rights of the
Lenders or the Issuing Bank under this Agreement or any other Credit Document,
pro rata in the proportion in which the amount of such costs and expenses unpaid
to each Lender or the Issuing Bank bears to the aggregate amount of the costs
and expenses unpaid to all Lenders and the Issuing Bank collectively, until all
such fees, costs and expenses have been paid in full;

     (c)  Third, to the payment of any due and unpaid fees to the Administrative
Agent or any Lender or Issuing Bank as provided by this Agreement or any other
Credit Document, pro rata in the proportion in which the amount of such fees due
and unpaid to the Administrative Agent and each Lender and Issuing Bank bears to
the aggregate amount of the fees due and unpaid to the Administrative Agent and
all Lenders and Issuing Bank collectively, until all such fees have been paid in
full;

     (d)  Fourth, to the payment of accrued and unpaid interest on the Loans or
the Reimbursement Obligations to the date of such application, pro rata in the
proportion in which the amount of such interest, accrued and unpaid to each
Lender or the Issuing Bank bears to the aggregate amount of such interest
accrued and unpaid to all Lenders and the Issuing Bank collectively, until all
such accrued and unpaid interest has been paid in full;

                                       60
<PAGE>

     (e)  Fifth, to the payment of the outstanding due and payable principal
amount of each of the Loans and the amount of the outstanding Reimbursement
Obligations (reserving cash collateral for all undrawn face amounts of any
outstanding Letters of Credit (if Section 7.4(a) has not been complied with)),
pro rata in the proportion in which the outstanding principal amount of such
Loans and the amount of such outstanding Reimbursement Obligations owing to each
Lender and Issuing Bank, together (if Section 7.4(a) has not been complied with)
with the undrawn face amounts of such outstanding Letters of Credit, bears to
the aggregate amount of all outstanding Loans, outstanding Reimbursement
Obligations and (if Section 7.4(a) has not been complied with) the undrawn face
amounts of all outstanding Letters of Credit. In the event that any such Letters
of Credit, or any portions thereof, expire without being drawn, any cash
collateral therefor shall be distributed by the Administrative Agent until the
principal amount of all Loans and Reimbursement Obligations shall have been paid
in full;

     (f)  Sixth, to the payment of any other outstanding Obligations then due
and payable, pro rata in the proportion in which the outstanding Obligations
owing to each Lender, Issuing Bank and Administrative Agent bears to the
aggregate amount of all such Obligations until all such Obligations have been
paid in full; and

     (g)  Seventh, to the Borrower or as the Borrower may direct.

ARTICLE 8.  CHANGE IN CIRCUMSTANCES.

     Section 8.1.   Change of Law.
                    -------------

     (a)  Notwithstanding any other provisions of this Agreement or any Note, if
at any time any change, after the date hereof (or, if later, after the date the
Administrative Agent or any Issuing Bank or Lender becomes the Administrative
Agent or an Issuing Bank or Lender), in applicable law or regulation or in the
interpretation thereof makes it unlawful for any Lender to make or maintain
Eurocurrency Loans or to fund any Loans in Euros, Pounds, or Kroner, or the
Issuing Bank to issue any Letter of Credit or to provide payment thereunder in
Euros, Pounds or Kroner, such Lender or Issuing Bank, as the case may be, shall
promptly give written notice thereof and of the basis therefor in reasonable
detail to the Borrower, and such Lender's or Issuing Bank's obligations to fund
affected Eurocurrency Loans or make, continue or convert such Loans under this
Agreement, or to issue any such Letters of Credit, as the case may be, shall
thereupon be suspended until it is no longer unlawful for such Lender to make or
maintain such Loans or issue such Letters of Credit.

     (b)  Upon the giving of the notice to Borrower referred to in subsection
(a) above in respect of any such Loan, (i) any outstanding such Loan of such
Lender shall be automatically converted to a Base Rate Loan in Dollars on the
last day of the Interest Period then applicable thereto or on such earlier date
as required by law, and (ii) such Lender shall make or continue its portion of
any requested Borrowing of such Loan as a Base Rate Loan in Dollars, which Base
Rate Loan shall, for all other purposes, be considered part of such Borrowing.

                                       61
<PAGE>

     (c)  Any Lender or Issuing Bank that has given any notice pursuant to
Section 8.1(a) shall, upon determining that it would no longer be unlawful for
it to make such Loans or issue such Letters of Credit, give prompt written
notice thereof to the Borrower and the Administrative Agent, and upon giving
such notice, its obligation to make, allow conversions into and maintain such
Loans or issue such Letters of Credit shall be reinstated.

     Section 8.2.  Unavailability of Deposits or Inability to Ascertain LIBOR
                   ----------------------------------------------------------
Rate. If on or before the first day of any Interest Period for any Borrowing of
----
Eurocurrency Loans the Administrative Agent determines in good faith (after
consultation with the other Lenders) that, due to changes in circumstances since
the date hereof, adequate and fair means do not exist for determining the LIBOR
Rate or such rate will not accurately reflect the cost to the Required Lenders
of funding Eurocurrency Loans in the applicable currency for such Interest
Period, the Administrative Agent shall give written notice (in reasonable
detail) of such determination and of the basis therefor to the Borrower and the
Lenders, whereupon until the Administrative Agent notifies the Borrower and
Lenders that the circumstances giving rise to such suspension no longer exist
(which the Administrative Agent shall do promptly after they do not exist), (i)
the obligations of the Lenders to fund Loans in Euros, Pounds or Kroner, or
make, continue or convert Loans as or into such Eurocurrency Loans, or to
convert Base Rate Loans into such Eurocurrency Loans, shall be suspended and
(ii) each Eurocurrency Loan will automatically on the last day of the then
existing Interest Period therefor, convert into a Base Rate Loan in Dollars.

     Section 8.3.  Increased Cost and Reduced Return.
                   ---------------------------------

     (a)  If, on or after the date hereof, the adoption of or any change in any
applicable law, rule or regulation, or any change in the interpretation or
administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance
by any Lender or Issuing Bank (or its Lending Office), with any request or
directive (whether or not having the force of law) of any such authority,
central bank or comparable agency exercising control over banks or financial
institutions generally issued after the date hereof (or, if later, after the
date the Administrative Agent, Issuing Bank, or Lender becomes the
Administrative Agent, Issuing Bank, or Lender):

          (i)   subjects any Lender or Issuing Bank (or its Lending Office) to
     any tax, duty or other charge related to any Eurocurrency Loan, Competitive
     Fixed Rate Loan, Reimbursement Obligation, or its obligation to advance or
     maintain Eurocurrency Loans, Competitive Fixed Rate Loans, or issue any
     Letter of Credit, or shall change the basis of taxation of payments to any
     Lender or Issuing Bank (or its Lending Office) of the principal of or
     interest on its Eurocurrency Loans, Competitive Fixed Rate Loans, Letters
     of Credit or Reimbursement Obligation or any participations in any thereof,
     or any other amounts due under this Agreement related to its Eurocurrency
     Loans, Competitive Fixed Rate Loans, Letters of Credit, Reimbursement
     Obligations or participations therein, or its obligation to make
     Eurocurrency Loans and Competitive Fixed Rate Loans, issue Letters of
     Credit, or acquire participations therein (except for changes with respect
     to taxes that are not Indemnified Taxes pursuant to Section 3.3); or

                                       62
<PAGE>

          (ii)  imposes, modifies or deems applicable any reserve, special
     deposit or similar requirement (including, without limitation, any such
     requirement imposed by the Board of Governors of the Federal Reserve
     System, but excluding for any Eurocurrency Loan any such requirement
     included in an applicable Statutory Reserve Rate) against assets of,
     deposits with or for the account of, or credit extended by, any Lender or
     Issuing Bank (or its Lending Office) or imposes on any Lender or Issuing
     Bank (or its Lending Office) or on the interbank market any other condition
     affecting its Eurocurrency Loans, Letters of Credit, any Reimbursement
     Obligations owed to it, or its participation in any thereof, or its
     obligation to advance or maintain Eurocurrency Loans, issue Letters of
     Credit or participate in any thereof;

and the result of any of the foregoing is to increase the cost to such Lender or
Issuing Bank (or its Lending Office) of advancing or maintaining any
Eurocurrency Loan or Competitive Fixed Rate Loan, issuing or maintaining a
Letter of Credit or participating therein, or to reduce the amount of any sum
received or receivable by such Lender or Issuing Bank (or its Lending Office) in
connection therewith under this Agreement or its Note, by an amount deemed by
such Lender or Issuing Bank to be material, then, subject to Section 8.3(c),
from time to time, within thirty (30) days after receipt of a certificate from
such Lender or Issuing Bank (with a copy to the Administrative Agent) pursuant
to subsection (c) below setting forth in reasonable detail such determination
and the basis thereof, the Borrower shall be obligated to pay to such Lender or
Issuing Bank such additional amount or amounts as will compensate such Lender or
Issuing Bank for such increased cost or reduction.

     (b)  If, after the date hereof, the Administrative Agent or any Lender or
Issuing Bank shall have reasonably determined that the adoption after the date
hereof of any applicable law, rule or regulation regarding capital adequacy, or
any change therein (including, without limitation, any revision in the Final
Risk-Based Capital Guidelines of the Board of Governors of the Federal Reserve
System (12 CFR Part 208, Appendix A; 12 CFR Part 225, Appendix A) or of the
Office of the Comptroller of the Currency (12 CFR Part 3, Appendix A), or in any
other applicable capital adequacy rules heretofore adopted and issued by any
governmental authority), or any change after the date hereof in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by the Administrative Agent or any Lender or Issuing Bank
(or its Lending Office) with any request or directive regarding capital adequacy
(whether or not having the force of law) of any such authority, central bank or
comparable agency, has or would have the effect of reducing the rate of return
on such Lender's or Issuing Bank's capital, or on the capital of any corporation
controlling such Lender or Issuing Bank, as a consequence of its obligations
hereunder to a level below that which such Lender or Issuing Bank could have
achieved but for such adoption, change or compliance (taking into consideration
such Lender's or Issuing Bank's or its controlling corporation's policies with
respect to capital adequacy in effect immediately before such adoption, change
or compliance) by an amount reasonably deemed by such Lender or Issuing Bank to
be material, then, subject to Section 8.3(c), from time to time, within
thirty (30) days after its receipt of a certificate from such Lender or Issuing
Bank (with a copy to the Administrative Agent) pursuant to subsection (c) below
setting forth in reasonable detail such determination and the basis thereof, the
Borrower shall pay to such Lender or Issuing Bank such additional amount or
amounts as will compensate such Lender or Issuing

                                       63
<PAGE>

Bank for such reduction or the Borrower may prepay all Eurocurrency Loans of
such Lender or obtain the cancellation of all such Letters of Credit.

     (c)  The Administrative Agent and each Lender and Issuing Bank that
determines to seek compensation or additional interest under this Section 8.3 or
Section 2.15 shall give written notice to the Borrower and, in the case of a
Lender or Issuing Bank other than the Administrative Agent, the Administrative
Agent of the circumstances that entitle the Administrative Agent or such Lender
or Issuing Bank to such compensation no later than ninety (90) days after the
Administrative Agent or such Lender or Issuing Bank receives actual notice or
obtains actual knowledge of the law, rule, order or interpretation or occurrence
of another event giving rise to a claim hereunder. In any event the Borrower
shall not have any obligation to pay any amount with respect to claims accruing
prior to the ninetieth day preceding such written demand. The Administrative
Agent and each Lender and Issuing Bank shall use reasonable efforts to avoid the
need for, or reduce the amount of, such compensation, additional interest, and
any payment under Section 3.3, including, without limitation, the designation of
a different Lending Office, if such action or designation will not, in the sole
judgment of the Administrative Agent or such Lender or Issuing Bank made in good
faith, be otherwise disadvantageous to it; provided that the foregoing shall not
in any way affect the rights of any Lender or Issuing Bank or the obligations of
the Borrower under this Section 8.3 or Section 2.15, and provided further that
no Lender or Issuing Bank shall be obligated to make its Eurocurrency Loans or
Competitive Fixed Rate Loans hereunder or fund any amount due in respect of a
Letter of Credit at any office located in the United States of America. A
certificate of the Administrative Agent or any Lender or Issuing Bank, as
applicable, claiming compensation or additional interest under this Section 8.3
or Section 2.15, and setting forth the additional amount or amounts to be paid
to it hereunder and accompanied by a statement prepared by the Administrative
Agent or such Lender or Issuing Bank, as applicable, describing in reasonable
detail the calculations thereof shall be prima facie evidence of the correctness
thereof. In determining such amount, such Lender or Issuing Bank may use any
reasonable averaging and attribution methods.

     Section 8.4.  Lending Offices.  The Administrative Agent and each Lender
                   ---------------
and Issuing Bank may, at its option, elect to make or maintain its Loans and
issue its Letters of Credit hereunder at the Lending Office for each type of
Loan or Letter of Credit available hereunder or at such other of its branches,
offices or affiliates as it may from time to time elect and designate in a
written notice to the Borrower and the Administrative Agent, provided that,
except in the case of any such transfer to another of its branches, offices or
affiliates made at the request of the Borrower, the Borrower shall not be
responsible for the costs arising under Section 3.3 or 8.3 resulting from any
such transfer to the extent not otherwise applicable to such Lender or Issuing
Bank prior to such transfer.

     Section 8.5.  Discretion of Lender as to Manner of Funding.  Subject to the
                   --------------------------------------------
other provisions of this Agreement, each Lender and Issuing Bank shall be
entitled to fund and maintain its funding of all or any part of its Loans and
Letters of Credit in any manner it sees fit.

     Section 8.6.  Substitution of Lender or Issuing Bank.  If (a) any Lender or
                   --------------------------------------
Issuing Bank has demanded compensation or additional interest or given notice of
its intention to demand compensation or additional interest under Section 8.3 or
Section 2.15, (b) the Borrower is

                                       64
<PAGE>

required to pay any additional amount to any Lender or Issuing Bank under
Section 2.12, (c) any Lender or Issuing Bank is unable to submit any form or
certificate required under Section 3.3(b) or withdraws or cancels any previously
submitted form with no substitution therefor, (d) any Lender or Issuing Bank
gives notice of any change in law or regulations, or in the interpretation
thereof, pursuant to Section 8.1, (e) any Lender or Issuing Bank has been
declared insolvent or a receiver or conservator has been appointed for a
material portion of its assets, business or properties or (f) any Lender or
Issuing Bank shall seek to avoid its obligation to make or maintain Loans or
issue Letters of Credit hereunder for any reason, including, without limitation,
reliance upon 12 U.S.C. (S) 1821(e) or (n) (1) (B), (g) any taxes referred to in
Section 3.3 have been levied or imposed (or the Borrower determines in good
faith that there is a substantial likelihood that such taxes will be levied or
imposed) so as to require withholding or deductions by the Borrower or payment
by the Borrower of additional amounts to any Lender or Issuing Bank, or other
reimbursement or indemnification of any Lender or Issuing Bank, as a result
thereof, (h) any Lender shall decline to consent to a modification or waiver of
the terms of this Agreement or any other Credit Documents requested by the
Borrower, or (i) the Issuing Bank gives notice pursuant to Section 2.13(a)(ii)
that the issuance of the Letter of Credit would violate any legal or regulatory
restriction then applicable to such Issuing Bank, then and in such event, upon
request from the Borrower delivered to such Lender or Issuing Bank, and the
Administrative Agent, such Lender shall assign, in accordance with the
provisions of Section 10.10 and an appropriately completed Assignment Agreement,
all of its rights and obligations under the Credit Documents to another Lender
or a commercial banking institution selected by the Borrower and (in the case of
a commercial banking institution) reasonably satisfactory to the Administrative
Agent, in consideration for the payments set forth in such Assignment Agreement
and payment by the Borrower to such Lender of all other amounts which such
Lender may be owed pursuant to this Agreement, including, without limitation,
Sections 2.12, 2.15, 3.3, 8.3 and 10.13.

ARTICLE 9. THE AGENTS.

     Section 9.1.  Appointment and Authorization of Administrative Agent,
                   -----------------------------------------------------
Syndication Agent, Documentation Agent and Senior Managing Agent.  Each Lender
----------------------------------------------------------------
hereby appoints STB as the Administrative Agent, ABN AMRO Bank, N.V. as the
Syndication Agent, Bank of America, N.A. as the Documentation Agent, and Wells
Fargo Bank Texas, National Association as Senior Managing Agent, under the
Credit Documents and hereby authorizes the Administrative Agent, the Syndication
Agent, the Documentation Agent and the Senior Managing Agent to take such action
as Administrative Agent, Syndication Agent, Documentation Agent and Senior
Managing Agent on each of its behalf and to exercise such powers under the
Credit Documents as are delegated to the Administrative Agent, the Syndication
Agent, the Documentation Agent and the Senior Managing Agent, respectively, by
the terms thereof, together with such powers as are reasonably incidental
thereto.

     Section 9.2.  Rights and Powers.  The Administrative Agent, the Syndication
                   -----------------
Agent, the Documentation Agent and the Senior Managing Agent shall have the same
rights and powers under the Credit Documents as any other Lender and may
exercise or refrain from exercising such rights and power as though it were not
an Administrative Agent, a Syndication Agent, a Documentation Agent or a Senior
Managing Agent, and the Administrative Agent, the

                                       65
<PAGE>

Syndication Agent, the Documentation Agent and the Senior Managing Agent and
their respective Controlling Affiliates may accept deposits from, lend money to,
and generally engage in any kind of business with the Borrower or any of its
Subsidiaries or Controlling Affiliates as if it were not an Administrative
Agent, a Syndication Agent, a Documentation Agent or a Senior Managing Agent
under the Credit Documents. The term Lender as used in all Credit Documents,
unless the context otherwise clearly requires, includes the Administrative
Agent, the Syndication Agent, the Documentation Agent and the Senior Managing
Agent in their respective individual capacities as a Lender.

     Section 9.3.  Action by Administrative Agent, Syndication Agent,
                   -------------------------------------------------
Documentation Agent and Senior Managing Agent.  The obligations of the
---------------------------------------------
Administrative Agent, the Syndication Agent, the Documentation Agent and the
Senior Managing Agent under the Credit Documents are only those expressly set
forth therein. Without limiting the generality of the foregoing, the
Administrative Agent shall not be required to take any action concerning any
Default or Event of Default, except as expressly provided in Sections 7.2 and
7.4. Unless and until the Required Lenders (or, if required by Section 10.11,
all of the Lenders) give such direction the Administrative Agent may, except as
otherwise expressly provided herein or therein, take or refrain from taking such
actions as it deems appropriate and in the best interest of all the Lenders. In
no event, however, shall the Administrative Agent, the Syndication Agent, the
Documentation Agent or the Senior Managing Agent be required to take any action
in violation of applicable law or of any provision of any Credit Document, and
each of the Administrative Agent, the Syndication Agent, the Documentation Agent
and the Senior Managing Agent shall in all cases be fully justified in failing
or refusing to act hereunder or under any other Credit Document unless it first
receives any further assurances of its indemnification from the Lenders that it
may require, including prepayment of any related expenses and any other
protection it requires against any and all costs, expenses, and liabilities it
may incur in taking or continuing to take any such action. The Administrative
Agent shall be entitled to assume that no Default or Event of Default, other
than non-payment of any scheduled principal or interest payment due hereunder,
exists unless notified in writing to the contrary by a Lender or the Borrower.
In all cases in which the Credit Documents do not require the Administrative
Agent, the Syndication Agent, the Documentation Agent or the Senior Managing
Agent to take specific action, the Administrative Agent, each of the Syndication
Agent, the Documentation Agent and the Senior Managing Agent shall be fully
justified in using its discretion in failing to take or in taking any action
thereunder. Any instructions of the Required Lenders, or of any other group of
Lenders called for under specific provisions of the Credit Documents, shall be
binding on all the Lenders and holders of Notes.

     Section 9.4.  Consultation with Experts.  Each of the Administrative Agent,
                   -------------------------
the Syndication Agent, the Documentation Agent and the Senior Managing Agent may
consult with legal counsel, independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken by it in good faith in accordance with the advice of such counsel,
accountants or experts.

     Section 9.5.  Indemnification Provisions; Credit Decision.  Neither the
                   -------------------------------------------
Administrative Agent, the Syndication Agent, the Documentation Agent, the Senior
Managing Agent nor any of their directors, officers, agents, or employees shall
be liable for any action taken or not taken by

                                       66
<PAGE>

them in connection with the Credit Documents (i) with the consent or at the
request of the Required Lenders (or, if required by Section 10.11, all of the
Lenders), or (ii) in the absence of their own gross negligence or willful
misconduct. Neither the Administrative Agent, the Syndication Agent, the
Documentation Agent, the Senior Managing Agent nor any of their directors,
officers, agents or employees shall be responsible for or have any duty to
ascertain, inquire into or verify (i) any statement, warranty or representation
made in connection with this Agreement, any other Credit Document or any
Borrowing; (ii) the performance or observance of any of the covenants or
agreements of the Borrower or any Subsidiary contained herein or in any other
Credit Document; (iii) the satisfaction of any condition specified in Article 4,
except receipt of items required to be delivered to the Administrative Agent; or
(iv) the validity, effectiveness, genuineness, enforceability, value, worth or
collectability hereof or of any other Credit Document or of any other documents
or writings furnished in connection with any Credit Document; and the
Administrative Agent, the Syndication Agent, the Documentation Agent and the
Senior Managing Agent make no representation of any kind or character with
respect to any such matters mentioned in this sentence. The Administrative
Agent, the Syndication Agent, the Documentation Agent and the Senior Managing
Agent may execute any of their duties under any of the Credit Documents by or
through employees, agents, and attorneys-in-fact and shall not be answerable to
the Lenders or any other Person for the default or misconduct of any such agents
or attorneys-in-fact selected with reasonable care. The Administrative Agent,
the Syndication Agent, the Documentation Agent and the Senior Managing Agent
shall not incur any liability by acting in reliance upon any notice, consent,
certificate, other document or statement (whether written or oral) believed by
it to be genuine or to be sent by the proper party or parties. In particular and
without limiting any of the foregoing, the Administrative Agent and the
Documentation Agent shall have no responsibility for confirming the accuracy of
any Compliance Certificate or other document or instrument received by any of
them under the Credit Documents. The Administrative Agent, the Syndication
Agent, the Documentation Agent and the Senior Managing Agent may treat the payee
of any Note as the holder thereof until written notice of transfer shall have
been filed with such Administrative Agent signed by such owner in form
satisfactory to such Administrative Agent. Each Lender acknowledges that it has
independently, and without reliance on the Administrative Agent, the Syndication
Agent, the Documentation Agent or the Senior Managing Agent or any other Lender,
obtained such information and made such investigations and inquiries regarding
the Borrower and its Subsidiaries as it deems appropriate, and based upon such
information, investigations and inquiries, made its own credit analysis and
decision to extend credit to the Borrower in the manner set forth in the Credit
Documents. It shall be the responsibility of each Lender to keep itself informed
about the creditworthiness and business, properties, assets, liabilities,
condition (financial or otherwise) and prospects of the Borrower and its
Subsidiaries, and the Administrative Agent, the Syndication Agent, the
Documentation Agent and the Senior Managing Agent shall have no liability
whatsoever to any Lender for such matters. The Administrative Agent, the
Syndication Agent, the Documentation Agent and the Senior Managing Agent shall
have no duty to disclose to the Lenders information that is not required by any
Credit Document to be furnished by the Borrower or any Subsidiaries to such
Agent at such time, but is voluntarily furnished to such Agent (either in their
respective capacity as Administrative Agent, the Syndication Agent, the
Documentation Agent or the Senior Managing Agent or in their individual
capacity).

                                       67
<PAGE>

     Section 9.6.  Indemnity.  The Lenders shall ratably, in accordance with
                   ---------
their Percentages, indemnify and hold the Administrative Agent, the Syndication
Agent, the Documentation Agent, the Senior Managing Agent, and their directors,
officers, employees, agents and representatives harmless from and against any
liabilities, losses, costs or expenses suffered or incurred by it under any
Credit Document or in connection with the transactions contemplated thereby,
regardless of when asserted or arising, except to the extent they are promptly
reimbursed for the same by the Borrower and except to the extent that any event
giving rise to a claim was caused by the gross negligence or willful misconduct
of the party seeking to be indemnified. The obligations of the Lenders under
this Section 9.6 shall survive termination of this Agreement.

     Section 9.7.  Resignation of Agents and Successor Agents.  The
                   ------------------------------------------
Administrative Agent, the Syndication Agent, the Documentation Agent and the
Senior Managing Agent may resign at any time and shall resign upon any removal
thereof as a Lender pursuant to the terms of this Agreement upon at least thirty
(30) days' prior written notice to the Lenders and the Borrower. Any resignation
of the Administrative Agent shall not be effective until a replacement therefor
is appointed pursuant to the terms hereof. Upon any such resignation of the
Administrative Agent, the Syndication Agent, the Documentation Agent or the
Senior Managing Agent, the Required Lenders and, so long as no Event of Default
shall then exist, with the consent of the Borrower (which consent shall not be
unreasonably withheld or delayed) shall have the right to appoint a successor
Administrative Agent, Syndication Agent, Documentation Agent or Senior Managing
Agent, as the case may be. If no successor Administrative Agent, Syndication
Agent, Documentation Agent or Senior Managing Agent, as the case may be, shall
have been so appointed by the Required Lenders and shall have accepted such
appointment within thirty (30) days after the retiring Administrative Agent's,
Syndication Agent's, Senior Managing Agent's or Documentation Agent's giving of
notice of resignation, then the retiring Administrative Agent, Syndication
Agent, Documentation Agent or Senior Managing Agent, as the case may be, may, on
behalf of the Lenders and, so long as no Event of Default shall then exist, with
the consent of the Borrower (which consent shall not be unreasonably withheld or
delayed) appoint a successor Administrative Agent, Syndication Agent,
Documentation Agent or Senior Managing Agent, as the case may be, which shall be
any Lender hereunder or any commercial bank organized under the laws of the
United States of America or of any State thereof and having a combined capital
and surplus of at least $1,000,000,000. Upon the acceptance of its appointment
as the Administrative Agent, the Syndication Agent, the Documentation Agent or
the Senior Managing Agent hereunder, such successor Administrative Agent,
Syndication Agent, Documentation Agent or Senior Managing Agent, as the case may
be, shall thereupon succeed to and become vested with all the rights and duties
of the retiring Administrative Agent, Syndication Agent, Documentation Agent or
Senior Managing Agent, as the case may be, under the Credit Documents, and the
retiring Administrative Agent, Syndication Agent, Documentation Agent or the
Senior Managing Agent shall be discharged from its duties and obligations
thereunder. After any retiring Administrative Agent's, Syndication Agent's,
Documentation Agent's or Senior Managing Agent's resignation hereunder as
Administrative Agent, Syndication Agent, Documentation Agent or Senior Managing
Agent, as the case may be, the provisions of this Article 9 and all protective
provisions of the other Credit Documents shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Administrative Agent,
Syndication Agent, Documentation Agent or Senior Managing Agent, as the case may
be.

                                       68
<PAGE>

ARTICLE 10.    MISCELLANEOUS.

     Section 10.1.  No Waiver.  No delay or failure on the part of the
                    ---------
Administrative Agent or any Lender or Issuing Bank, or on the part of the holder
or holders of any Notes, in the exercise of any power, right or remedy under any
Credit Document shall operate as a waiver thereof or as an acquiescence in any
default, nor shall any single or partial exercise thereof preclude any other or
further exercise of any other power, right or remedy.  To the fullest extent
permitted by applicable law, the powers, rights and remedies under the Credit
Documents of the Administrative Agent, the Lenders, the Issuing Bank and the
holder or holders of any Notes are cumulative to, and not exclusive of, any
powers, rights or remedies any of them would otherwise have.

     Section 10.2.  Non-Business Day.  Subject to Section 2.5, if any payment of
                    ----------------
principal or interest on any portion of any Loan, any Reimbursement Obligation,
or any other Obligation shall fall due on a day which is not a Business Day,
interest or fees (as applicable) at the rate, if any, such portion of any Loan,
any Reimbursement Obligation, or other Obligation bears for the period prior to
maturity shall continue to accrue in the manner set forth herein on such
Obligation from the stated due date thereof to the next succeeding Business Day,
on which the same shall instead be payable.

     Section 10.3.  Documentary Taxes.  The Borrower agrees that it will pay any
                    -----------------
documentary, stamp or similar taxes payable with respect to any Credit Document,
including interest and penalties, in the event any such taxes are assessed
irrespective of when such assessment is made, other than any such taxes imposed
as a result of any transfer of an interest in a Credit Document.  Each Lender
and Issuing Bank that determines to seek compensation under this Section 10.3
shall give written notice to the Borrower and, in the case of a Lender or
Issuing Bank other than the Administrative Agent, the Administrative Agent of
the circumstances that entitle such Lender or Issuing Bank to such compensation
no later than ninety (90) days after such Lender or Issuing Bank receives actual
notice or obtains actual knowledge of the law, rule, order or interpretation or
occurrence of another event giving rise to a claim hereunder.  In any event, the
Borrower shall not have any obligation to pay any amount with respect to claims
accruing prior to the 90th day preceding such written demand.

     Section 10.4.  Survival of Representations.  All representations and
                    ---------------------------
warranties made herein or in certificates given pursuant hereto shall survive
the execution and delivery of this Agreement and the other Credit Documents, and
shall continue in full force and effect with respect to the date as of which
they were made as long as the Borrower has any Obligation hereunder or any
Commitment hereunder is in effect.

     Section 10.5.  Survival of Indemnities.  All indemnities and all provisions
                    -----------------------
relative to reimbursement to the Lenders and Issuing Bank of amounts sufficient
to protect the yield of the Lenders and Issuing Bank with respect to the Loans
and the L/C Obligations, including, but not limited to, Section 2.12, Section
2.15, Section 3.3, Section 7.6, Section 8.3, Section 10.3, and Section 10.13
hereof, shall, subject to Section 8.3(c), survive the termination of this
Agreement and the other Credit Documents and the payment of the Loans and all
other Obligations and,

                                       69
<PAGE>

with respect to any Lender or Issuing Bank, any replacement by the Borrower of
such Lender pursuant to the terms hereof, in each case for a period of one (1)
year.

     Section 10.6.  Setoff.  In addition to any rights now or hereafter granted
                    ------
under applicable law and not by way of limitation of any such rights, upon the
occurrence of, and throughout the continuance of, any Event of Default, each
Lender and Issuing Bank and each subsequent holder of any Note is hereby
authorized by the Borrower at any time or from time to time, without notice to
the Borrower or any other Person, any such notice being hereby expressly waived,
to set off and to appropriate and to apply any and all deposits (general or
special, including, but not limited to, Indebtedness evidenced by certificates
of deposit, whether matured or unmatured, but not including trust accounts, and
in whatever currency denominated) and any other Indebtedness at any time owing
by that Lender or that subsequent holder to or for the credit or the account of
the Borrower, whether or not matured, against and on account of the due and
unpaid obligations and liabilities of the Borrower to that Lender or Issuing
Bank or that subsequent holder under the Credit Documents, irrespective of
whether or not that Lender or Issuing Bank or that subsequent holder shall have
made any demand hereunder.  Each Lender or Issuing Bank shall promptly give
notice to the Borrower of any action taken by it under this Section 10.6,
provided that any failure of such Lender or Issuing Bank to give such notice to
the Borrower shall not affect the validity of such setoff.  Each Lender and
Issuing Bank agrees with each other Lender and Issuing Bank a party hereto that
if such Lender or Issuing Bank receives and retains any payment, whether by
setoff or application of deposit balances or otherwise, in respect of the Loans
or L/C Obligations in excess of its ratable share of payments on all such
Obligations then owed to the Lenders and Issuing Bank hereunder, then such
Lender or Issuing Bank shall purchase for cash at face value, but without
recourse, ratably from each of the other Lenders such amount of the Loans and
L/C Obligations and participations therein held by each such other Lender as
shall be necessary to cause such Lender or Issuing Bank to share such excess
payment ratably with all the other Lenders; provided, however, that if any such
purchase is made by any Lender or Issuing Bank, and if such excess payment or
part thereof is thereafter recovered from such purchasing Lender or Issuing
Bank, the related purchases from the other Lenders or Issuing Bank shall be
rescinded ratably and the purchase price restored as to the portion of such
excess payment so recovered, but without interest.

     Section 10.7.  Notices.  Except as otherwise specified herein, all notices
                    -------
under the Credit Documents shall be in writing (including cable, telecopy or
telex) and shall be given to a party hereunder at its address, telecopier number
or telex number set forth below or such other address, telecopier number or
telex number as such party may hereafter specify by notice to the Administrative
Agent and the Borrower, given by courier, by United States certified or
registered mail, by telegram or by other telecommunication device capable of
creating a written record of such notice and its receipt.  Notices under the
Credit Documents to the Lenders, the Administrative Agent and the Issuing Bank
shall be addressed to their respective addresses, telecopier or telex number, or
telephone numbers set forth on the signature pages hereof, and to the Borrower
to:

                    Transocean Sedco Forex Inc.
                    4 Greenway Plaza
                    Houston, Texas 77046

                                       70
<PAGE>

                    Attention:  Brian C. Voegele
                    Telephone No.:  (713) 232-7587
                    Fax No.:  (713) 232-7033

With a copy to:
                    Baker Botts LLP
                    One Shell Plaza
                    Houston, Texas  77002-4995
                    Attention:  Stephen Krebs
                    Telephone No. (713) 229-1467
                    Fax No.:  (713) 229-1522

Each such notice, request or other communication shall be effective (i) if given
by telecopier, when such telecopy is transmitted to the telecopier number
specified in this Section 10.7, on the signature pages hereof or pursuant to
Section 10.10 and a confirmation of receipt of such telecopy has been received
by the sender, (ii) if given by courier, when delivered, (iii) if given by mail,
five (5) days after such communication is deposited in the mail, certified or
registered with return receipt requested, or (iv) if given by any other means,
when delivered at the addresses specified in this Section 10.7, on the signature
pages hereof or pursuant to Section 10.10; provided that any notice given
pursuant to Article 2 shall be effective only upon receipt and, provided
further, that any notice that but for this proviso would be effective after the
close of business on a Business Day or on a day that is not a Business Day shall
be effective at the opening of business on the next Business Day.

     Section 10.8.  Counterparts.  This Agreement may be executed in any number
                    ------------
of counterparts, and by the different parties on different counterpart signature
pages, each of which when executed shall be deemed an original, but all such
counterparts taken together shall constitute one and the same Agreement.

     Section 10.9.  Successors and Assigns.  This Agreement shall be binding
                    ----------------------
upon the Borrower, each of the Lenders, the Issuing Bank, the Administrative
Agent, the Syndication Agent, the Documentation Agent, the Senior Managing
Agent, and their respective successors and assigns, and shall inure to the
benefit of the Borrower, each of the Lenders, the Issuing Bank, the
Administrative Agent, the Syndication Agent, the Documentation Agent, the Senior
Managing Agent, and their respective successors and assigns, including any
subsequent holder of any Note; provided, however, the Borrower may not assign
any of its rights or obligations under this Agreement or any other Credit
Document without the written consent of all Lenders, the Issuing Bank, the
Administrative Agent, the Syndication Agent, the Documentation Agent and the
Senior Managing Agent, and the Administrative Agent, the Syndication Agent, the
Documentation Agent and the Senior Managing Agent may not assign any of their
respective rights or obligations under this Agreement or any Credit Document
except in accordance with Article 9 and no Lender or Issuing Bank may assign any
of its rights or obligations under this Agreement or any other Credit Document
except in accordance with Section 10.10. Any Lender or Issuing Bank may at any
time pledge or assign all or any portion of its rights under this Agreement and
the Notes issued to it to a Federal Reserve Bank to secure extensions of credit
by

                                       71
<PAGE>

such Federal Reserve Bank to such Lender; provided that no such pledge or
assignment shall release a Lender or Issuing Bank from any of its obligations
hereunder or substitute any such Federal Reserve Bank for such Lender as a party
hereto. Any Lender or Issuing Bank may at any time pledge or assign all or any
portion of its rights under this Agreement and the Notes issued to it (i) to a
Federal Reserve Bank to secure extensions of credit by such Federal Reserve Bank
to such Lender, or (ii) in the case of any Lender that is a fund comprised in
whole or in part of commercial loans, to a trustee for such fund in support of
such Lender's obligations to such trustee; provided that no such pledge or
assignment shall release a Lender or Issuing Bank from any of its obligations
hereunder or substitute any such Federal Reserve Bank or such trustee for such
Lender as a party hereto and the Borrower, the Administrative Agent and the
other Lenders shall continue to deal solely with such Lender or Issuing Bank in
connection with the rights and obligations of such Lender and Issuing Bank under
this Agreement.

     Section 10.10.  Sales and Transfers of Borrowing and Notes; Participations
                     ----------------------------------------------------------
in Borrowings and Notes.
-----------------------

     (a)  Any Lender may, upon written notice to the Borrower, at any time sell
to one or more commercial banking or other financial or lending institutions
("Participants") participating interests in any Borrowing owing to such Lender,
any Note held by such Lender, any Commitment of such Lender, or any obligations
and interests in respect of L/C Obligations, provided that no Lender may sell
any participating interests in any such Borrowing, Note, Commitment and any
obligations and interests in respect of L/C Obligations without also selling to
such Participant the appropriate pro rata share of all such Borrowings, Notes,
Commitment and any obligations and interests in respect of L/C Obligations (but
excluding interests in respect of Competitive Loans), and provided further that
no Lender shall transfer, grant or assign any participation under which the
Participant shall have rights to vote upon or to consent to any matter to be
decided by the Lenders or the Required Lenders hereunder or under any other
Credit Document or to approve any amendment to or waiver of this Agreement or
any other Credit Document except to the extent such amendment or waiver would
(i) increase the amount of such Lender's Commitment and such increase would
affect such Participant, (ii) reduce the principal of, or interest on, any of
such Lender's Borrowings, or any fees or other amounts payable to such Lender
hereunder and such reduction would affect such Participant, (iii) postpone any
date fixed for any scheduled payment of principal of, or interest on, any of
such Lender's Borrowings, or any fees or other amounts payable to such Lender
hereunder and such postponement would affect such Participant, or (iv) release
any collateral security for any Obligation, except as otherwise specifically
provided in any Credit Document. In the event of any such sale by a Lender of
participating interests to a Participant, such Lender's obligations under this
Agreement to the other parties to this Agreement shall remain unchanged, such
Lender shall remain solely responsible for the performance thereof, such Lender
shall remain the holder of any such Note for all purposes under this Agreement,
the Borrower and the Administrative Agent shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement and such Lender shall retain the sole right to
enforce the obligations of the Borrower under any Credit Document. The Borrower
agrees that if amounts outstanding under this Agreement and the Notes shall have
been declared or shall have become due and payable in accordance with Section
7.2 or 7.3 upon the occurrence of an Event of Default, each Participant shall be
deemed to have the right of setoff in respect of its participating

                                       72
<PAGE>

interest in amounts owing under this Agreement and any Note to the same extent
as if the amount of its participating interest were owing directly to it as a
Lender under this Agreement or any Note, provided that such right of setoff
shall be subject to the obligation of such Participant to share with the
Lenders, and the Lenders agree to share with such Participant, as provided in
Section 10.6. The Borrower also agrees that each Participant shall be entitled
to the benefits of Sections 2.12, 2.15, 3.3 and 8.3 with respect to its
participation in the Commitments and the Borrowings outstanding from time to
time, provided that no Participant shall be entitled to receive any greater
amount pursuant to such Sections than the transferor Lender would have been
entitled to receive in respect of the amount of the participation transferred if
no participation had been transferred and provided, further, that Sections
8.3(c) and 8.6 shall apply to the transferor Lender with respect to any claim by
any Participant pursuant to Section 2.12, 2.15, 3.3 or 8.3 as fully as if such
claim was made by such Lender. Anything herein to the contrary notwithstanding,
the Borrower shall not, at any time, be obligated to pay to any Lender any sum
in excess of the sum the Borrower would have been obligated to pay to such
Lender hereunder if such Lender had not sold any participation in its rights and
obligations under this Agreement or any other Credit Document.

     (b)  Any Lender may at any time sell to (i) any of such Lender's affiliates
or to any other Lender or any affiliate thereof that is a commercial banking or
other financial or lending institution not subject to Regulation T of the Board
of Governors of the Federal Reserve System and, (ii) with the prior written
consent of the Administrative Agent and the Borrower (which shall not be
unreasonably withheld or delayed), to one or more commercial banking or other
financial or lending institutions not subject to Regulation T of the Board of
Governors of the Federal Reserve System (any of (i) or (ii), a "Purchasing
Lender"), all or any part of its rights and obligations under this Agreement and
the other Credit Documents, pursuant to an Assignment Agreement in the form
attached as Exhibit 10.10, executed by such Purchasing Lender and such
            -------------
transferor Lender (and, in the case of a Purchasing Lender which is not then a
Lender or an affiliate thereof, by the Borrower and the Administrative Agent)
and delivered to the Administrative Agent; provided that each such sale to a
Purchasing Lender shall be in a Dollar Equivalent amount of $5,000,000
(calculated as hereinafter set forth) or more, or if in a lesser amount or if as
a result of such sale the sum of the unfunded Commitment of such Lender plus the
aggregate principal amount of such Lender's Loans and participations in Letters
of Credits would be less than a Dollar Equivalent amount of $5,000,000
(calculated as hereinafter set forth), such sale shall be of all of such
Lender's rights and obligations under this Agreement and all of the other Credit
Documents payable to it to one Purchasing Lender. Notwithstanding the
requirement of the Borrower's consent set forth above, but subject to all of the
other terms and conditions of this Section 10.10(b), any Lender may sell to one
or more commercial banking or other financial or lending institutions not
subject to Regulation T of the Board of Governors of the Federal Reserve System,
all or any part of their rights and obligations under this Agreement and the
other Credit Documents with only the consent of the Administrative Agent (which
shall not be unreasonably withheld or delayed) if an Event of Default shall have
occurred and be continuing. No Lender may sell or assign any portion of its
Commitment, Borrowings, Notes, or obligations and interests in respect of L/C
Obligations hereunder to a Purchasing Lender without also selling to such
Purchasing Lender (i) the appropriate pro rata share of all such Borrowings,
Notes, Commitment, and obligations and interests in respect of L/C Obligations
hereunder (but excluding interests in respect of Competitive Loans), and (ii) a
pro rata amount of any loans

                                       73
<PAGE>

(excluding loans made by such Lender on a competitive bid basis pursuant to the
364-Day Credit Agreement), borrowings, promissory notes, commitment or
obligations and interests in respect of letter of credit obligations under the
364-Day Credit Agreement (but excluding interests in respect of loans made by
such Lender on a competitive bid basis thereunder). For purposes of calculating
the satisfaction of the $5,000,000 minimum amount requirement set forth in the
first sentence of this Section 10.10(b), such amount shall be the sum of the
total amount so sold and assigned to the Purchasing Lender pursuant to this
Agreement and the total amount so sold and assigned to the Purchasing Lender
pursuant to the 364-Day Credit Agreement in accordance with the immediately
preceding sentence. Upon such execution, delivery and acceptance, from and after
the effective date of the transfer determined pursuant to such Assignment
Agreement, (x) the Purchasing Lender thereunder shall be a party hereto and, to
the extent provided in such Assignment Agreement, have the rights and
obligations of a Lender hereunder with a Commitment as set forth herein and (y)
the transferor Lender thereunder shall, to the extent provided in such
Assignment Agreement, be released from its obligations under this Agreement
(and, in the case of an Assignment Agreement covering all or the remaining
portion of a transferor Lender's rights and obligations under this Agreement,
such transferor Lender shall cease to be a party hereto). Such Assignment
Agreement shall be deemed to amend this Agreement to the extent, and only to the
extent, necessary to reflect the addition of such Purchasing Lender and the
resulting adjustment of Commitments and Percentages arising from the purchase by
such Purchasing Lender of all or a portion of the rights and obligations of such
transferor Lender under this Agreement, the Notes and the other Credit
Documents. On or prior to the effective date of the transfer determined pursuant
to such Assignment Agreement, the Borrower, at its own expense, shall execute
and deliver to the Administrative Agent in exchange for any surrendered Note, a
new Note as appropriate to the order of such Purchasing Lender in an amount
equal to the Commitments assumed by it pursuant to such Assignment Agreement,
and, if the transferor Lender has retained a Commitment or Borrowing hereunder,
a new Note to the order of the transferor Lender in an amount equal to the
Commitments or Borrowings retained by it hereunder. Such new Notes shall be
dated the Initial Availability Date and shall otherwise be in the form of the
Notes replaced thereby. The Notes surrendered by the transferor Lender shall be
returned by the Administrative Agent to the Borrower marked "cancelled."

     (c)  Upon its receipt of an Assignment Agreement executed by a transferor
Lender, a Purchasing Lender and the Administrative Agent (and, in the case of a
Purchasing Lender that is not then a Lender or an affiliate thereof, by the
Borrower), together with payment by the transferor Lender to the Administrative
Agent hereunder of a registration and processing fee of $1,000 (unless the
Borrower is replacing such Lender pursuant to the terms hereof, in which event
such fee shall be paid by the Borrower), the Administrative Agent shall (i)
promptly accept such Assignment Agreement, and (ii) on the effective date of the
transfer determined pursuant thereto give notice of such acceptance and
recordation to the Lenders and the Borrower. The Borrower shall not be
responsible for such registration and processing fee or any costs or expenses
incurred by any Lender, any Purchasing Lender or the Administrative Agent in
connection with such assignment except as provided above.

     (d)  If, pursuant to this Section 10.10 any interest in this Agreement or
any Loan or Note is transferred to any transferee which is organized under the
laws of any jurisdiction other than the United States of America or any State
thereof, the transferor Lender shall cause such

                                       74
<PAGE>

transferee, concurrently with the effectiveness of such transfer, (i) to
represent to the transferor Lender (for the benefit of the transferor Lender,
the Administrative Agent and the Borrower) that under applicable law and
treaties no taxes will be required to be withheld by the Administrative Agent,
the Borrower or the transferor Lender with respect to any payments to be made to
such transferee in respect of the Loans or the L/C Obligations, (ii) to furnish
to the transferor Lender (and, in the case of any Purchasing Lender, the
Administrative Agent and the Borrower) two duly completed and signed copies of
either U.S. Internal Revenue Service Form W-8 BEN or U.S. Internal Revenue
Service Form W-8 ECI or such successor forms as shall be adopted from time to
time by the relevant United States taxing authorities (wherein such transferee
claims entitlement to complete exemption from U.S. federal withholding tax on
all interest payments hereunder), and (iii) to agree (for the benefit of the
transferor Lender, the Administrative Agent and the Borrower) to provide the
transferor Lender (and, in the case of any Purchasing Lender, the Administrative
Agent and the Borrower) new forms as contemplated by Section 3.3(b) upon the
expiration or obsolescence of any previously delivered form and comparable
statements in accordance with applicable U.S. laws and regulations and
amendments duly executed and completed by such transferee, and to comply from
time to time with all applicable U.S. laws and regulations with regard to such
withholding tax exemption.

     (e)  Notwithstanding any other provisions of this Section 10.10, no
transfer or assignment of the interests of any Lender hereunder or any grant of
participations therein shall be permitted if such transfer, assignment or grant
would require the Borrower to file a registration statement with the SEC or to
qualify the Loans, the Notes or any other Obligations under the securities laws
of any jurisdiction.

     Section 10.11.  Amendments, Waivers and Consents.  Any provision of the
                     --------------------------------
Credit Documents may be amended or waived if, but only if, such amendment or
waiver is in writing and is signed by (a) the Borrower, (b) the Required
Lenders, and (c) if the rights or duties of the Administrative Agent, the
Syndication Agent, the Documentation Agent or the Senior Managing Agent are
affected thereby, the Administrative Agent, the Syndication Agent, the
Documentation Agent or the Senior Managing Agent, as the case may be, provided
that:

          (i)  no amendment or waiver shall (A) increase the Revolving Credit
     Commitment Amount without the consent of all Lenders or increase any
     Commitment of any Lender without the consent of such Lender, or (B)
     postpone the Maturity Date without the consent of all Lenders, or reduce
     the amount of or postpone the date for any scheduled payment of any
     principal of or interest (including, without limitation, any reduction in
     the rate of interest unless such reduction is otherwise provided herein) on
     any Loan or Reimbursement Obligation or of any fee payable hereunder,
     without the consent of each Lender owed any such Obligation, or (C) release
     any Collateral for any Collateralized Obligations (other than as provided
     in accordance with Section 7.4) without the consent of all Lenders; and

          (ii) no amendment or waiver shall, unless signed by each Lender,
     change the provisions of this Section 10.11 or the definition of Required
     Lenders or the number of Lenders required to take any action under any
     other provision of the Credit Documents.

                                       75
<PAGE>

     Section 10.12.  Headings.  Section headings used in this Agreement are for
                     --------
reference only and shall not affect the construction of this Agreement.

     Section 10.13.  Legal Fees, Other Costs and Indemnification.  The Borrower,
                     -------------------------------------------
upon demand by the Administrative Agent, agrees to pay the reasonable fees and
disbursements of legal counsel to the Administrative Agent in connection with
the preparation and execution of the Credit Documents (which shall be in an
amount agreed in writing by the Borrower), and any amendment, waiver or consent
related thereto, whether or not the transactions contemplated therein are
consummated.  The Borrower further agrees to indemnify each Lender, Issuing
Bank, the Administrative Agent, the Syndication Agent, the Documentation Agent,
the Senior Managing Agent, and their respective directors, officers, employees
and attorneys (collectively, the "Indemnified Parties"), against all losses,
claims, damages, penalties, judgments, liabilities and expenses (including,
without limitation, all reasonable attorneys' fees and other reasonable expenses
of litigation or preparation therefor,  whether or not such Indemnified Party is
a party thereto) which any of them may pay or incur as a result of (a) any
action, suit or proceeding by any third party or governmental authority against
such Indemnified Party and relating to any Credit Document, the Loans, any
Letter of Credit, or the application or proposed application by any of the
Borrower of the proceeds of any Loan or use of any Letter of Credit, REGARDLESS
OF WHETHER SUCH CLAIMS OR ACTIONS ARE FOUNDED IN WHOLE OR IN PART UPON THE
ALLEGED SIMPLE OR CONTRIBUTORY NEGLIGENCE OF ANY OF THE INDEMNIFIED PARTIES
AND/OR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES OR ATTORNEYS, (b)
any investigation of any third party or any governmental authority involving any
Lender (as a lender hereunder), Issuing Bank, or the Administrative Agent, the
Syndication Agent, the Documentation Agent or the Senior Managing Agent (in such
capacity hereunder) and related to any use made or proposed to be made by the
Borrower of the proceeds of any Loan, or use of any Letter of Credit or any
transaction financed or to be financed in whole or in part, directly or
indirectly with the proceeds of any Loan or Letter of Credit, and (c) any
investigation of any third party or any governmental authority, litigation or
proceeding involving any Lender (as a lender hereunder) or the Administrative
Agent, the Syndication Agent, the Documentation Agent or the Senior Managing
Agent (in such capacity hereunder) and related to any environmental cleanup,
audit, compliance or other matter relating to any Environmental Law or the
presence of any Hazardous Material (including, without limitation, any losses,
liabilities, damages, injuries, costs, expenses or claims asserted or arising
under any Environmental Law) with respect to the Borrower, regardless of whether
caused by, or within the control of, the Borrower; provided, however, that the
Borrower shall not be obligated to indemnify any Indemnified Party for any of
the foregoing arising out of such Indemnified Party's gross negligence or
willful misconduct, as determined pursuant to a final nonappealable judgment of
a court of competent jurisdiction or as expressly agreed in writing by such
Indemnified Party.  The Borrower, upon demand by the Administrative Agent, the
Syndication Agent, the Documentation Agent, the Senior Managing Agent or a
Lender or Issuing Bank at any time, shall reimburse such Agent or such Lender or
Issuing Bank for any reasonable legal or other expenses incurred in connection
with investigating or defending against any of the foregoing, except if the same
is excluded from indemnification pursuant to the provisions of the preceding
sentence.  Each Indemnified Party agrees to contest any indemnified claim if
requested by the Borrower, in a manner reasonably directed by the Borrower, with
counsel selected by the Indemnified Party and approved by the Borrower, which
approval shall

                                       76
<PAGE>

not be unreasonably withheld or delayed. Any Indemnified Party that proposes to
settle or compromise any such indemnified claim shall give the Borrower written
notice of the terms of such proposed settlement or compromise reasonably in
advance of settling or compromising such claim or proceeding and shall obtain
the Borrower's prior written consent thereto, which consent shall not be
unreasonably withheld or delayed; provided that the Indemnified Party shall not
be restricted from settling or compromising any such claim if the Indemnified
Party waives its right to indemnity from the Borrower in respect of such claim.

     Section 10.14.  Governing Law; Submission to Jurisdiction; Waiver of Jury
                     ---------------------------------------------------------
Trial.
------

     (A)  THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS, AND THE RIGHTS AND
DUTIES OF THE PARTIES THERETO, SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

     (B)  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HERETO
AGREE THAT ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF
THE ADMINISTRATIVE AGENT, THE DOCUMENTATION AGENT, THE SENIOR MANAGING AGENT,
THE SYNDICATION AGENT, THE LENDERS, THE ISSUING BANK, OR THE BORROWER MAY BE
BROUGHT AND MAINTAINED IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE
BOROUGH OF MANHATTAN OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE
BORROWER HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET
FORTH ABOVE AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY
IN CONNECTION WITH SUCH LITIGATION.  THE BORROWER HEREBY IRREVOCABLY DESIGNATES
CT CORPORATION SYSTEM, 111 8TH AVENUE, NEW YORK, NEW YORK 10011, AS THE
DESIGNEE, APPOINTEE AND AGENT OF THE BORROWER TO RECEIVE, FOR AND ON BEHALF OF
THE BORROWER, SERVICE OF PROCESS IN SUCH JURISDICTION IN ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT HERETO.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, THE BORROWER FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS, BY
REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE
STATE OF NEW YORK.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE
BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY HAVE
OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN
ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN
BROUGHT IN AN

                                       77
<PAGE>

INCONVENIENT FORUM.  TO THE EXTENT THAT THE BORROWER HAS OR HEREAFTER MAY
ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS
(WHETHER THROUGH SERVICE OF NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN
AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE
BORROWER HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT AND THE
OTHER CREDIT DOCUMENTS.

     (C) TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO
WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR
DEFEND ANY RIGHTS UNDER THIS AGREEMENT OR UNDER ANY AMENDMENT, INSTRUMENT,
DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN
CONNECTION HEREWITH OR ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN
CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING
SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

     (D) EACH PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS
IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.7.  NOTHING IN THIS AGREEMENT
WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY APPLICABLE LAW.

     Section 10.15.  Confidentiality.  Each of the Agents, Issuing Bank and
                     ---------------
Lenders agree to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (i) to their respective
affiliates and to prospective Purchasing Lenders and Participants and their
respective directors, officers, employees and agents, including accountants,
legal counsel and other advisors who have reason to use such Information in
connection with the evaluation of the transactions contemplated by this
Agreement (subject to similar confidentiality provisions as provided herein)
solely for purposes of evaluating such Information, (ii) to the extent requested
by any regulatory authority, (iii) to the extent required by applicable law or
regulation or by any subpoena or similar legal process, (iv) in connection with
the exercise of any remedies hereunder or any proceedings relating to this
Agreement or the other Credit Documents, (v) with the consent of the Borrower,
or (vi) to the extent such Information (x) becomes publicly available other than
as a result of a breach of this Section 10.15, or (y) becomes available on a
non-confidential basis from a source other than the Borrower or its affiliates
or the Lenders or their respective affiliates. For purposes hereof,
"Information" means all information received by the Lenders from the Borrower
relating to the Borrower or its business, other than any such information that
is available to the Lenders on a non-confidential basis prior to disclosure by
the Borrower. The Lenders shall be considered to have complied with their
respective obligations if they have exercised the same degree of care to
maintain the confidentiality of such Information as they would accord their own
confidential information.

                                       78
<PAGE>

     Section 10.16.  Effectiveness.  This Agreement shall become effective on
                     -------------
the date (the "Effective Date") on which the Borrower, the Administrative Agent,
and each Lender have signed and delivered to the Administrative Agent a
counterparty signature page hereto or, in the case of a Lender, the
Administrative Agent has received a facsimile notice that such a counterpart has
been signed and mailed to the Administrative Agent.

     Section 10.17.  Severability.  Any provision of this Agreement that is
                     ------------
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     Section 10.18.  Currency Conversion.  All payments of Obligations under
                     -------------------
this Agreement, the Notes or any other Credit Document shall be made in Dollars,
except for Loans funded, or Reimbursement Obligations with respect to Letters of
Credit issued, in Euros, Pounds or Kroner, which shall be repaid, including
interest thereon, in the applicable currency. If any payment of any Obligation,
whether through payment by the Borrower or the proceeds of any collateral, shall
be made in a currency other than the currency required hereunder, such amount
shall be converted into the currency required hereunder at the current market
rate for the purchase of the currency required hereunder with the currency in
which such obligation was paid, as quoted by the Lender who is the
Administrative Agent in accordance with the methods customarily used by such
Lender for such purposes as of the time of such determination. The parties
hereto hereby agree, to the fullest extent that they may effectively do so under
applicable law, that (i) if for the purposes of obtaining any judgment or award
it becomes necessary to convert from any currency other than the currency
required hereunder into the currency required hereunder any amount in connection
with the Obligations, then the conversion shall be made as provided above on the
Business Day before the day on which the judgment or award is given, (ii) in the
event that there is a change in the rate of exchange prevailing between the
Business Day before the day on which the judgment or award is given and the date
of payment, the Borrower will pay to the Administrative Agent, for the benefit
of the Lenders, such additional amounts (if any) as may be necessary, and the
Administrative Agent, on behalf of the Lenders, will pay to the Borrower such
excess amounts (if any) as result from such change in the rate of exchange, to
assure that the amount paid on such date is the amount in such other currency,
which when converted at the rate of exchange described herein on the date of
payment, is the amount then due in the currency required hereunder, and (iii)
any amount due from the Borrower under this Section 10.18 shall be due as a
separate debt and shall not be affected by judgment or award being obtained for
any other sum due. For the avoidance of doubt, the parties affirm and agree that
neither the fixation of the conversion rate of Pounds or Kroners against the
Euro as a single currency, in accordance with the Treaty Establishing the
European Economic Community, as amended by the Treaty on the European Union (The
Maastricht Treaty), nor the conversion of the Obligations under this Agreement
from Pounds or Kroners into Euros will be a reason for early termination or
revision of this Agreement or prepayment of any amount due under this agreement
or create any liability of any party towards any other party for any direct or
consequential loss arising from any of these events. As of the date that Pounds
or Kroners are no longer the lawful currency of the United Kingdom or Norway, as
the case may be, all funding and payment Obligations to be made in such affected
currency under this Agreement shall be satisfied in Euros. If, in relation to

                                       79
<PAGE>

the currency of any member state of the European Union that adopts the Euro as
its lawful currency, the basis of accrual of interest expressed in this
Agreement in respect of that currency shall be inconsistent with any convention
or practice in the London interbank market for the basis of accrual of interest
in respect of the Euro, such expressed basis shall be replaced by such
convention or practice with effect from the date on which such member state
adopts the Euro as its lawful currency; provided that if any Borrowing in the
currency of such member state is outstanding immediately prior to such date,
such replacement shall take effect, with respect to such Borrowing, at the end
of the then current Interest Period.

     Section 10.19.  Exchange Rates.
                     --------------

     (a) Determination of Exchange Rates.  Not later than 2:00 p.m. on each
         -------------------------------
Calculation Date, the Administrative Agent shall (i) determine the Exchange Rate
as of such Calculation Date with respect to Euros, Pounds, and Kroner, and (ii)
give notice thereof to the Lenders and the Borrower.  The Exchange Rates so
determined shall become effective on the first Business Day immediately
following the relevant Calculation Date (a "Reset Date"), shall remain effective
until the next succeeding Reset Date, and shall for all purposes of this
Agreement (other than Section 10.18 or any other provision expressly requiring
the use of a current Exchange Rate) be the Exchange Rates employed in
determining the Dollar Equivalent of any amounts of Euros, Pounds, or Kroner.

     (b) Notice of Foreign Currency Loans and Letters of Credit.  Not later than
         ------------------------------------------------------
5:00 p.m. on each Reset Date and each date on which Loans and/or Letters of
Credit denominated in Euros, Pounds and/or Kroner are made or issued, the
Administrative Agent shall (i) determine the Dollar Equivalent of the aggregate
principal amounts of the Loans and L/C Obligations denominated in such
currencies (after giving effect to any Loans and/or Letters of Credit
denominated in such currencies being made, issued, repaid, or cancelled or
reduced on such date), and (ii) notify the Lenders and the Borrower of the
results of such determination.

     Section 10.20.  Change in Accounting Principles, Fiscal Year or Tax Laws.
                     --------------------------------------------------------
If (i) any change in accounting principles from those used in the preparation of
the financial statements of the Borrower referred to in Section 5.9 is hereafter
occasioned by the promulgation of rules, regulations, pronouncements and
opinions by or required by the Financial Accounting Standards Board or the
American Institute of Certified Public Accounts (or successors thereto or
agencies with similar functions), and such change materially affects the
calculation of any component of any financial covenant, standard or term found
in this Agreement, or (ii) there is a material change in federal or foreign tax
laws which materially affects any of the Borrower and its Subsidiaries' ability
to comply with the financial covenants, standards or terms found in this
Agreement, the Borrower and the Lenders agree to enter into negotiations in
order to amend such provisions (with the agreement of the Required Lenders or,
if required by Section 10.11, all of the Lenders) so as to equitably reflect
such changes with the desired result that the criteria for evaluating any of the
Borrower's and its Subsidiaries' financial condition shall be the same after
such changes as if such changes had not been made. Unless and until such
provisions have been so amended, the provisions of this Agreement shall govern.

                                       80
<PAGE>

     Section 10.21.  Final Agreement.  The Credit Documents constitute the
                     ---------------
entire understanding among the Credit Parties, the Lenders, the Issuing Bank,
and the Administrative Agent and supersede all earlier or contemporaneous
agreements, whether written or oral, concerning the subject matter of the Credit
Documents. THIS WRITTEN AGREEMENT TOGETHER WITH THE OTHER CREDIT DOCUMENTS
REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     Section 10.22.  Officer's Certificates.  It is not intended that any
                     ----------------------
certificate of any officer of the Borrower delivered to the Administrative Agent
or any Lender pursuant to this Agreement shall give rise to any personal
liability on the part of such officer.

     Section 10.23.  Effect of Inclusion of Exceptions.  It is not intended that
                     ---------------------------------
the specification of any exception to any covenant herein shall imply that the
excepted matter would, but for such exception, be prohibited or required.

                                       81
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their duly authorized officers as of the day and
year first above written.

                              BORROWER:
                              --------

                              TRANSOCEAN SEDCO FOREX INC.,
                              a Cayman Islands company

                              By:______________________
                              Name:
                              Title:

                              Attest:__________________
                              Name:
                              Title:

                                       82
<PAGE>

                              SUNTRUST BANK,
                              As Administrative Agent, Issuing Bank,
                              and a Lender

                              By:_____________________________
                              Name:
                              Title:

COMMITMENT AMOUNT:       $47,265,625

PERCENTAGE:                0.0859375%

Address for Notices:
-------------------

SunTrust Bank
SunTrust Plaza
303 Peachtree Street, N.E., 3rd Floor
Atlanta, GA  30308
Attn: Mr. John Fields
Telephone No.:     404/724-3667
Telecopy No.:      404/827-6270

Lending Office:
---------------

SunTrust Bank
SunTrust Plaza
303 Peachtree Street, N.E., 3rd Floor
Atlanta, GA  30308
Attn: Mr. John Fields
Telephone No.:     404/724-3667
Telecopy No.:      404/827-6270

Payment Instructions:
---------------------

Bank Name:         SunTrust Bank
ABA Number:        061 000 104
City, State:       Atlanta, Georgia
Account Number:    908 8000 112
Attention:         Pat Etheridge 404/588-8358
Reference:         Transocean Sedco Forex Inc.

                                       83
<PAGE>

                              ABN AMRO BANK, N.V.,
                              As Syndication Agent and a Lender

                              By:____________________________
                              Name:
                              Title:

COMMITMENT AMOUNT:       $43,828,125

PERCENTAGE:                0.0796875%

Address for Notices:
-------------------

ABN AMRO Bank, N.V.
208 South LaSalle Street, Suite 1500
Chicago, IL  60604-1003
Attn:               Dina Tucci-Albro
Telephone No.:      312/992-5120
Telecopy No.:       312/992-5111

with a copy to:

ABN AMRO Bank, N.V.
Three Riverway, Suite 1700
Houston, TX  77056
Attn:               Deanna Breland
Telephone No.:      713/964-3326
Telecopy No.:       713/964-5801

Lending Office:
---------------

ABN AMRO Bank, N.V.
208 South LaSalle Street, Suite 1500
Chicago, IL  60604-1003
Attn:               Loan Administration
Telephone No.:      312/992-5150
Telecopy No.:       312/992-5155

                                       84
<PAGE>

                              ABN AMRO BANK, N.V.,    (Continued)
                              As Syndication Agent and a Lender
Letter of Credit:
----------------

ABN AMRO Bank N.V.
200 West Monroe Street, Suite 1100
Chicago, IL  60608-5002

Payment Instructions:
--------------------

Bank Name:            ABN AMRO Bank, N.V.
ABA Number:           026009580
City, State:          New York, NY
Account Name:         F/O ABN AMRO Bank, N.V.
                      Chicago Branch CPU
Account Number:       650-001-178941
Attention:
Reference:            CPU 00193232 - Transocean Sedco

Letters of Credit:
------------------

Bank Name:            ABN AMRO Bank, N.V.
ABA Number:           026009580
City, State:          New York, NY
Account Name:         F/O ABN AMRO Bank, N.V.
                      Chicago Trade Services CPU
Account Number:       653-001 1738 41
Attention:
Reference:            Transocean Sedco

                                       85
<PAGE>

                              BANK OF AMERICA, N.A.,
                              As Documentation Agent and a Lender

                              By:_______________________________
                              Name:
                              Title:

COMMITMENT AMOUNT:       $43,828,125

PERCENTAGE:                0.0796875%

Address for Notices:
-------------------

Bank of America, N.A.
333 Clay Street, Suite 4550
Houston, TX  77002
Attn: Patrick Delaney, Managing Director
Telephone No.:      713/651-4929
Telecopy No.:       713/651-4808

Lending Office:
---------------

Bank of America, N.A.
901 Main Street
Dallas, TX  75202
Attn: Ramon Garcia
      Customer Service Representative
Telephone No.:      214/209-2119
Telecopy No.:       214/290-9462

with a copy to:

Bank of America, N.A.
333 Clay Street, Suite 4550
Houston, TX  77002
Attn: Thelma Johnson
Telephone No.:      713/651-4864
Telecopy No.:       713/651-4808

                                       86
<PAGE>

                              BANK OF AMERICA, N.A.,  (continued)
                              As Documentation Agent and a Lender

Payment Instructions:
--------------------

Bank Name:          Bank of America, N.A.
ABA Number:         #111000012
City, State:
Account Number:     1292000883
Attention:          Corporate Loan Funds
Reference:          Transocean Sedco Forex Inc.

                                       87
<PAGE>

                              WELLS FARGO BANK TEXAS,
                              NATIONAL ASSOCIATION,
                              As Senior Managing Agent and a Lender

                              By:_______________________________
                              Name:
                              Title:

COMMITMENT AMOUNT:       $43,828,125

PERCENTAGE:                0.0796875%

Address for Notices:
-------------------

Wells Fargo Bank Texas, National Association
1000 Louisiana
3rd Floor, Energy Department
Houston, TX  77002
Attn: Spencer Smith, Vice President
Telephone No.:      713/319-1362
Telecopy No.:       713/739-1087

Lending Office:
---------------

Wells Fargo Bank Texas, National Association
1740 Broadway
Denver, CO  80274
Attn: Tanya Ivie, Production Manager
Telephone No.:      303/863-6102
Telecopy No.:       303/863-2729

Payment Instructions:
---------------------

Bank Name:          Wells Fargo Bank
ABA Number:         121-000-248
City, State:        San Francisco, CA
Account Number:     2712501201
Attention:          Syndicated Loans
Reference:          Transocean Sedco Forex

                                       88
<PAGE>

                                        NATIONAL WESTMINSTER BANK PLC,
                                        NEW YORK BRANCH,
                                        As a Lender

                                        By:    _____________________
                                        Name:
                                        Title:

                                        NATIONAL WESTMINSTER BANK PLC,
                                        NASSAU BRANCH,
                                        As a Lender

                                        By:    _____________________
                                        Name:
                                        Title:

COMMITMENT AMOUNT:              $36,093,750

PERCENTAGE:                       0.0656250%

Address for Notices:
-------------------

National Westminster Bank Plc
600 Travis Street, Suite 6070
Houston, TX 77002
Attn:               Scott Barton
                    Senior Vice President
Telephone No.:      713/221-2436
Telecopy No.:       713/221-2430

National Westminster Bank Plc
600 Travis Street, Suite 6070
Houston, TX  77002
Attn:               John Preece
                    Assistant Vice President
Telephone No.:      713/221-2429
Telecopy No.:       713/221-2430

                                       89
<PAGE>

                                        NATIONAL WESTMINSTER BANK PLC,
                                        NEW YORK BRANCH,  (Continued)

                                        NATIONAL WESTMINSTER BANK PLC,
                                        NASSAU BRANCH,

Administrative Contacts - Borrowings, Payments, Etc.
----------------------------------------------------

National Westminster Bank Plc
65 East 55/th/ Street, 24/th/ Floor
New York, NY 10022
Attn:               Sheila Shaw/Juanita Baird
Telephone No.:      212/401-1406/1420
Telecopy No.:       212/401-1494

Domestic Lending Office:
-----------------------

National Westminster Bank Plc
65 East 55/th/ Street, 24/th/ Floor
New York, NY 10022

Eurodollar Lending Office:
-------------------------

National Westminister Bank Plc
Nassau Branch
65 East 55/th/ Street, 24/th/ Floor
New York, NY 10022

Payment Instructions:
--------------------

Bank Name:          Chase Manhattan Bank, New York
ABA Number:         2712507201
City, State:        New York, NY
Account Name:       NatWest Plc, New York FX
Account Number:     0011012440
Attention:          Commercial Loans
Reference:          Transocean Sedco Forex Inc.

                                       90
<PAGE>

                                   THE BANK OF TOKYO-MITSUBISHI, LTD.
                                   As a Lender

                                   By:    _____________________
                                   Name:
                                   Title:

COMMITMENT AMOUNT:       $36,093,750

PERCENTAGE:                0.0656250%

Address for Notices:
-------------------

The Bank of Tokyo-Mitsubishi, Ltd.
1100 Louisiana Street
Suite 2800
Houston, TX 77002
Attn:  Iris Munoz, Senior Associate
Telephone No.:      713/655-3814
Telecopy No.:       713/655-3855

Lending Office:
--------------

The Bank of Tokyo-Mitsubishi, Ltd.
1100 Louisiana Street
Suite 2800
Houston, TX 77002
Attn:  Nadra Breir
Telephone           713/655-3847
Telecopy No.:       713/658-0116

Payment Instructions:
--------------------

Bank Name:          The Bank of Tokyo-Mitsubishi, Ltd. - New York
ABA Number:         026009632
City, State:        New York, New York
Account Name:       The Bank of Tokyo-Mitsubishi, Ltd. - Houston Agency
Account Number:     30001710
Attention:          Nadra Breir
Reference:          Transocean Sedco Forex

                                       91
<PAGE>

                                        THE FUJI BANK, LIMITED,
                                        As a Lender

                                        By:    __________________
                                        Name:
                                        Title:

COMMITMENT AMOUNT:       $36,093,750

PERCENTAGE:                0.0656250%

Address for Notices:
-------------------

The Fuji Bank, Limited
Two World Trade Center
New York, NY 10048
Attn:  Tina Catapano
Telephone No.:      212/898-2099
Telecopy No.:       212/488-8216

Lending Office:
--------------

The Fuji Bank, Limited
1221 McKinney Street
Suite 4100
Houston, TX 77010
Attn:  Mark Polasek
Telephone No.:      713/650-7863
Telecopy No.:       713/759-0717

Payment Instructions:
--------------------

Bank Name:          The Fuji Bank, Limited
ABA Number:         026009700
City, State:
Account Number:     515011
Attention:          US Corporate
Reference:          Transocean Sedco Forex Inc.

                                       92
<PAGE>

                                        BANK ONE, NA
                                        As a Lender

                                        By:   __________________
                                        Name:
                                        Title:

COMMITMENT AMOUNT:       $36,093,750

PERCENTAGE:                0.0656250%

Address for Notices:
-------------------

Bank One, NA
910 Travis
6th Floor
Houston, TX 77002
Attn:             Dorothy Meachum
Telephone No.:    713/751-3735
Telecopy No.:     713/751-3760

Borrowings, Payments, Interest, Etc.
------------------------------------

Bank One, NA
1 Bank One Plaza
0634, 1FNP, 10
Chicago, IL 60670
Attn:             Bill Laird
Telephone No.:    312/732-5635
Telecopy No.:     312/732-4840

Domestic Lending Office:
-----------------------

Bank One, NA
1 Bank One Plaza
0634, 1FNP, 10
Chicago, IL 60670

                                       93
<PAGE>

                                        BANK ONE, NA (Continued)
                                        As a Lender

Eurodollar Lending Office:
-------------------------

Bank One, NA
1 Bank One Plaza
IL 1 0634
Chicago, IL 60670

Payment Instructions:
--------------------

Bank Name:        Bank One, Chicago
ABA Number:       071000013
City, State:      Chicago, IL
Account Number:   481152860000
Account Name:     LSII Incoming Clearing A/c
Attention:        Bill Laird
Reference:        Transocean Sedco Forex Inc.

                                       94
<PAGE>

                                        THE BANK OF NEW YORK
                                        As a Lender

                                        By:   ____________________
                                        Name:
                                        Title:

COMMITMENT AMOUNT:       $36,093,750

PERCENTAGE:                0.0656250%

Address for Notices:
-------------------

The Bank of New York
One Wall Street, 19th Floor
New York, NY 10286
Attn:  Theresa M. Burke
       Oil & Gas Division
Telephone No.:  212/635-7532
Telecopy No.:   212/635-7923

Domestic Borrowings:               Payment Instructions:
-------------------                --------------------

The Bank of New York               Bank Name:        The Bank of New York
101 Barclay Street                 ABA Number:       021000018
New York, NY 10286                 City, State:      New York, NY
Attn:  Bill Barbiero               Account Name:     Comm. Loan Servicing Dept.
       Commercial Loan Servicing   Account Number:   111 556
        Department                 Attention:        Bill Barbiero
Telephone No.:                     Reference:        Transocean Sedco Forex Inc.
Telecopy No.:

Eurodollar Lending Office:
-------------------------

The Bank of New York               Bank Name:        The Bank of New York
101 Barclay Street                 ABA Number:       021000018
New York, NY 10286                 City, State:      New York, NY
Attn:  Bill Barbiero               Account Name:     Comm. Loan Servicing Dept.
       Commercial Loan Servicing   Account Number:   111 556
        Department                 Attention:        Bill Barbiero
Telephone No.:                     Reference:        Transocean Sedco Forex Inc.
Telecopy No.:

                                       95
<PAGE>

                                        THE BANK OF NEW YORK (Continued)
                                        As a Lender

Letters of Credit:                 Payment Instructions:
-----------------                  --------------------

The Bank of New York               Bank Name:        The Bank of New York
101 Barclay Street                 ABA Number:       021000018
New York, NY 10286                 City, State:      New York, NY
Attn:  Venus McGregor              Account Name:     Trade Services Department
       Trade Services Department   Account Number:   GLA #111115
Telephone No.:                     Attention:        Venus McGregor
Telecopy No.:                      Reference:        Transocean Sedco Forex Inc.

Domestic Borrowings:               Payment Instructions:
-------------------                --------------------

The Bank of New York               Bank Name:        The Bank of New York
101 Barclays Street                ABA Number:       021000018
New York, NY 10286                 City, State:      New York, NY
Attn:  Bill Barbiero               Account Name:     Comm. Loan Servicing Dept.
       Commercial Loan Servicing   Account Number:   111 556
        Department                 Attention:        Bill Barbiero
Telephone No.:                     Reference:        Transocean Sedco Forex Inc.
Telecopy No.:

                                       96
<PAGE>

                                             CITIBANK, N.A.,
                                             As a Lender

                                             By:   _____________________
                                             Name:
                                             Title:

COMMITMENT AMOUNT:       $36,093,750

PERCENTAGE:                0.0656250%

Address for Notices:
-------------------

Citibank, N.A.
399 Park Avenue
New York, NY 10043
Attn:       Mark S. Johnson
            Vice President
Telephone No.:     212/559-4721
Telecopy No.:      212/793-3588

Lending Office:
--------------

Citibank, N.A.
Two Penns Way
Suite 200
New Castle, DE 19720
Attn:  Sean Portrait
Telephone No.:     302/894-6083
Telecopy No.:      302/894-6120

Payment Instructions:
--------------------

Bank Name:          Citibank, N.A.
ABA Number:         021000089
City, State:        New Castle, DE
Account Name:       Shipping Concentration
Account Number:     4054-8046
Attention:          Sean Portrait
Reference:          Transocean Sedco Forex Inc.

                                       97
<PAGE>

                                        CREDIT LYONNAIS NEW YORK BRANCH,
                                        As a Lender

                                        By:   ____________________
                                        Name:
                                        Title:

COMMITMENT AMOUNT:    $36,093,750

PERCENTAGE:             0.0656250%

Address for Notices:
-------------------

Credit Lyonnais
1000 Louisiana
Suite 5360
Houston, TX 77002
Attn:        Page Dillehunt
Telephone No.:    713/753-8713
Telecopy No.:     713/751-0307

Credit Lyonnais
1301 Avenue of the Americas
New York, NY 10019
Attn:        Bindu Menon
Telephone No.:    212/761-7633
Telecopy No.:     917/849-5440

Domestic and Eurodollar Lending Office:
--------------------------------------

Credit Lyonnais New York Branch
1301 Avenue of the Americas
New York, NY 10019

                                       98
<PAGE>

                                        CREDIT LYONNAIS NEW YORK BRANCH,
                                        As a Lender    (Continued)

Payment Instructions:
--------------------

Bank Name:          Credit Lyonnais New York
ABA Number:         026008073
City, State:        New York, NY
Account Number:     01-88179-3701-00-179
Attention:
Reference:          Transocean Sedco Forex Inc.

                                       99
<PAGE>

                              DEN NORSKE BANK ASA,
                              As a Lender

                              By:   _________________
                              Name:
                              Title:

COMMITMENT AMOUNT:    $36,093,750

PERCENTAGE:             0.0656250%

Address for Notices:
-------------------

Den norske Bank ASA
200 Park Avenue, 31/st/ Floor
New York, NY 10166
Attn:        Barbara Gronquist
             Senior Vice President
Telephone No.:      212/681-3859
Telecopy No.:       212/681-3900

Lending Office:
---------------

Den norske Bank ASA
299 Park Avenue
New York, NY 10166
Attn:        Bill Trivedi
             Credit Manager
Telephone No.:      212/681-3824
Telecopy No.:       212/681-3900

Payment Instructions:
---------------------

Bank Name:          Bank of New York
ABA Number:         021 000 018
City, State:        New York, NY
Account Name:       Den Norske Bank - New York / SWIFT:DNBAUS33
Account Number:     Transocean - A/C# 10768999
Attention:          Anny Peralta
Reference:          Transocean Sedco Forex Inc.

                                      100
<PAGE>

                              CREDIT SUISSE FIRST BOSTON,
                              As a Lender

                              By:    _________________
                              Name:
                              Title:

COMMITMENT AMOUNT:    $17,187,500

PERCENTAGE:             0.0312500%

Address for Notices:
-------------------

Credit Suisse First Boston
11 Madison Avenue
New York, NY 10010
Attn:        James Moran
             Director
Telephone No.:      212/325-9176
Telecopy No.:       212/325-8615

Lending Office:
---------------

Credit Suisse First Boston
5 World Trade Center
New York, NY 10048
Attn: Jenaro Sarasola
Telephone No.:      212/322-1384
Telecopy No.:       212/335-0593

Payment Instructions:
---------------------

Bank Name:          Bank of New York
ABA Number:         021 000 018
City, State:        New York, NY
Account Name:       CSFBNY Loan Clearing
Account Number:     8900329262
Attention:          _________________________
Reference:          Transocean Sedco Forex Inc.

                                      101
<PAGE>

                              THE BANK OF NOVA SCOTIA,
                              As a Lender

                              By:   _______________________
                              Name:
                              Title:

COMMITMENT AMOUNT:    $17,187,500

PERCENTAGE:             0.0312500%

Address for Notices:
-------------------

The Bank of Nova Scotia
Houston Representative Office
1100 Louisiana, Suite 3000
Houston, TX 77002
Attn:        Jean Paul Purdy
Telephone No.:    713/759-3433
Telecopy No.:     713/752-2425

The Bank of Nova Scotia
Houston Representative Office
1100 Louisiana, Suite 3000
Houston, TX 77002
Attn:        Julie Hellman
Telephone No.:    713/759-3442
Telecopy No.:     713/752-2425

Lending Office:
---------------

PRIMARY                                         SECONDARY
The Bank of Nova Scotia                         The Bank of Nova Scotia
Atlanta Agency                                  Atlanta Agency
Suite 2700, 600 Peachtree St. NE                Suite 2700, 600 Peachtree St. NE
Atlanta, GA 30308                               Atlanta, GA  30308
Attn:  Donna Gardner                            Attn:  Michelle Wingard
Telephone No.:    404/877-1552                  Telephone No.:     404/877-1562
Telecopy No.:     404/888-8998                  Telecopy No.:      404/888-8998

                                      102
<PAGE>

                                            THE BANK OF NOVA SCOTIA, (Continued)
                                            As a Lender

Domestic and Eurodollar Lending Office:
--------------------------------------

The Bank of Nova Scotia
Atlanta Agency
Suite 2700, 600 Peachtree Street, N.E.
Atlanta, GA 30308

Payment Instructions:
--------------------

Bank Name:       The Bank of Nova Scotia, New York Agency
ABA Number:      026002532
City, State:     New York, NY
Account Name:    BNS Atlanta Agency
Account Number:  #0606634
Reference:       Transocean Sedco Forex Inc.

                                      103
<PAGE>

                              CHRISTIANIA BANK OG KREDITKASSE
                              ASA, NEW YORK BRANCH,
                              As a Lender

                              By:    __________________________
                              Name:
                              Title:

COMMITMENT AMOUNT:      $17,187,500

PERCENTAGE:               0.0312500%

Address for Notices:
--------------------

Christiania Bank og Kreditkasse
   ASA, New York Branch
11 West 42/nd/ Street
New York, NY 10036
Attn:   Martin Lunder
        Senior Vice President
Telephone No.:  212/827-4828
Telecopy No.:   212/827-4888

Lending Office:
---------------

Christiania Bank og Kreditkasse
   ASA, New York Branch
11 West 42/nd/ Street
New York, NY 10036
Attn:   Jacqueline Ng
        Assistant Treasurer
Telephone No.:  212/827-4897
Telecopy No.:   212/827-4888

Payment Instructions:
---------------------

Bank Name:      Bank of New York, New York
ABA Number:     021000018
City, State:    New York, NY
Account Name:   Christiania Bank, New York
Account Number: #8026120277
Attention:      Loan Administration
Reference:      Transocean Sedco Forex Inc.

                                      104
<PAGE>

                              AUSTRALIA AND NEW ZEALAND
                              BANKING GROUP LIMITED,
                              As a Lender

                              By:    ____________________
                              Name:
                              Title:

COMMITMENT AMOUNT:    $10,312,500

PERCENTAGE:             0.0187500%

Address for Notices:
-------------------

Australia and New Zealand Banking
 Group Limited
1177 6/th/ Avenue
New York, NY 10036
Attn:    David Giacalone
         Vice President
Telephone No.:   212/801-9814
Telecopy No.:    212/556-4814

Lending Office:
---------------

Australia and New Zealand Banking
  Group Limited
1177 6/th/ Avenue
New York, NY 10036
Attn:    Tessie Amante
         Supervisor
Telephone No.:   212/801-9744
Telecopy No.:    212/801-9859

Payment Instructions:
---------------------

Bank Name:       Chase Manhattan Bank
ABA Number:      021-000-021
City, State:     New York, NY
Account Name:    Australia and New Zealand Bank, New York
Account Number:  400-928884
Reference:       Transocean Sedco Forex Inc. Revolvers

                                      105
<PAGE>

                              WESTDEUTSCHE LANDESBANK
                              GIROZENTRALE, NEW YORK BRANCH,
                              As a Lender

                              By:   ________________________
                              Name:
                              Title:

COMMITMENT AMOUNT:    $20,625,000

PERCENTAGE:             0.0375000%

Address for Notices:
--------------------

Westdeutsche Landesbank Girozentrale,
  New York Branch
1211 Avenue of the Americas
New York, NY 10036
Attn:         Richard Newman
              Director, Corporate Finance
Telephone No.:    212/963-5203
Telecopy No.:     212/963-5308

Lending Office:
---------------

Westdeutsche Landesbank Girozentrale,
  New York Branch
1211 Avenue of the Americas
New York, NY 10036
Attn:         Thomas Lee
              Manager
Telephone No.:    212/852-0204
Telecopy No.:     212/852-6148

Payment Instructions:
---------------------

Bank Name:        The Chase Manhattan Bank, N.A.
ABA Number:       021-000-021
City, State:      New York, NY
Account Name:     Westdeutsche Landesbank Girozentrale, New York Branch
Account Number:   9201060663
Attention:        Grace Curran
Reference:        Transocean Sedco Forex Inc. Revolvers

                                      106
<PAGE>

                                 SCHEDULE 1.1

                       FOREIGN CURRENCY PAYMENT ACCOUNTS
                       ---------------------------------

FOR POUNDS STERLING:

       PAY TO:   BARCLAYS BANK PLC (SWIFT CODE: BARCGB22)
                 54 LOMBARD STREET
                 LONDON, EC3V 9BA  ENGLAND
                 ACCOUNT OF:  SUNTRUST BANK (SWIFT CODE:  SNTRUS3A)
                 ACCOUNT NO.:  30847747
                 REF: TRANSOCEAN

FOR EUROS:

       PAY TO:   BAYERISCHE LANDESBANK GIROZENTRALE (SWIFT CODE:
                    BYLADEMM)
                 BRIENNER STRASSE 20
                 P.O. BOX 200525
                 80000 MUNICH 2, GERMANY
                 ACCOUNT OF:  SUNTRUST BANK (SWIFT CODE: SNTRUS3A)
                 ACCOUNT NO:   8116691
                 REF: TRANSOCEAN

FOR NORWEGIAN KRONER:

       PAY TO:   DEN NORSKE BANK, A.S. (SWIFT CODE: DNBANOKK)
                 KIRKEGATEN 21
                 OSLO 1, NORWAY
                 ACCOUNT OF:  SUNTRUST BANK (SWIFT CODE: SNTRUS3A)
                 ACCOUNT NO:   7001.02.42124
                 REF: TRANSOCEAN<PAGE>
                                                                    EXHIBIT 4.33

                                                                  EXECUTION COPY

================================================================================

                           364-DAY CREDIT AGREEMENT

                                  Dated as of

                               December 29, 2000

                                     Among

                         TRANSOCEAN SEDCO FOREX INC.,

                          THE LENDERS PARTIES HERETO,

                                SUNTRUST BANK,
                           as Administrative Agent,

                             ABN AMRO BANK, N.V.,
                             as Syndication Agent,

                            BANK OF AMERICA, N.A.,
                            as Documentation Agent,

                                      And

                 WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION,
                           as Senior Managing Agent

                  SUNTRUST EQUITABLE SECURITIES CORPORATION,
                       as Lead Arranger and Book Runner

================================================================================

<PAGE>

                           364-DAY CREDIT AGREEMENT
                           ------------------------

     THIS 364-DAY CREDIT AGREEMENT (the "Agreement"), dated as of December 29,
2000, among TRANSOCEAN SEDCO FOREX INC. (the "Borrower"), a Cayman Islands
company, the lenders from time to time parties hereto (each a "Lender" and
collectively, the "Lenders"), SUNTRUST BANK, a Georgia banking corporation
("STB"), as administrative agent for the Lenders (in such capacity, the
"Administrative Agent"), ABN AMRO BANK, N.V., as syndication agent for the
Lenders (in such capacity, the "Syndication Agent"), BANK OF AMERICA, N.A., as
documentation agent for the Lenders (in such capacity, the "Documentation
Agent"), WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION, as senior managing agent
for the Lenders (in such capacity, the "Senior Managing Agent"), and STB, as
issuing bank of the Letters of Credit hereunder (STB and any other Lender that
issues a Letter of Credit hereunder, in such capacity, an "Issuing Bank").

                                  WITNESSETH:

     WHEREAS, the Borrower has requested that the Lenders establish in its favor
a 364-day revolving credit facility in the aggregate principal amount of U.S.
$250,000,000, pursuant to which facility loans would be made to, and letters of
credit would be issued for the account of, the Borrower;

     WHEREAS, the Lenders are willing to make such revolving credit facility
available to the Borrower on the terms and subject to the conditions and
requirements hereinafter set forth;

     NOW, THEREFORE, in consideration of the premises and of the mutual
covenants herein contained, the parties hereto agree as follows:

ARTICLE 1.  DEFINITIONS; INTERPRETATION.

     Section 1.1.  Definitions. Unless otherwise defined herein, the following
                   -----------
terms shall have the following meanings, which meanings shall be equally
applicable to both the singular and plural forms of such terms:

     "Adjusted LIBOR" means, for any Borrowing of Eurocurrency Revolving Loans
for any Interest Period, a rate per annum determined in accordance with the
following formula:

     Adjusted LIBOR  =        LIBOR Rate for such Interest Period
                              -----------------------------------
                                 1.00 - Statutory Reserve Rate

     "Adjusted LIBOR Loan" means a Eurocurrency Revolving Loan bearing
interest at a rate based on Adjusted LIBOR as provided in Section 2.7(b).

     "Administrative Agent" means SunTrust Bank, acting in its capacity as
administrative agent for the Lenders, and any successor Administrative Agent
appointed hereunder pursuant to Section 9.7.
<PAGE>

     "Agreement" means this 364-Day Credit Agreement, as the same may be
amended, restated and supplemented from time to time.

     "Applicable Facility Fee Rate" means for any day, at such times as a debt
rating (either express or implied) by S&P or Moody's (or in the event that both
cease the issuance of debt ratings generally, such other ratings agency agreed
to by the Borrower and the Administrative Agent) is in effect on the Borrower's
non-credit enhanced senior unsecured long-term debt, the percentage per annum
set forth opposite such debt rating:

     Debt Rating                                  Percentage
     -----------                                  ----------

     A+/A1 or above                               0.060%

     A/A2                                         0.070%

     A-/A3                                        0.080%

     BBB+/Baa1                                    0.100%

     BBB/Baa2                                     0.125%

     BBB-/Baa3 or below                           0.175%

If the ratings issued by S&P and Moody's differ (i) by one rating, the higher
rating shall apply to determine the Applicable Facility Fee Rate, (ii) by two
ratings, the rating which falls between them shall apply to determine the
Applicable Facility Fee Rate, or (iii) by more than two ratings, the rating
immediately above the lower of the two ratings shall apply to determine the
Applicable Facility Fee Rate.  The Borrower shall give written notice to the
Administrative Agent of any changes to such ratings, within three (3) Business
Days thereof, and any change to the Applicable Facility Fee Rate shall be
effective on the date of the relevant change.  Notwithstanding the foregoing,
(i) the Applicable Facility Fee Rate in effect at all times during the first six
months after the Initial Availability Date shall in no event be less than a
percentage per annum equal to 0.100%, and (ii) if the Borrower shall at any time
fail to have in effect such a debt rating on the Borrower's non-credit enhanced
senior unsecured long-term debt, the Borrower shall seek and obtain (if not
already in effect), within thirty (30) days after such debt rating first ceases
to be in effect, a corporate credit rating or a bank loan rating from Moody's or
S&P, or both, and the Applicable Facility Fee Rate shall thereafter be based on
such ratings in the same manner as provided herein with respect to the
Borrower's senior unsecured long-term debt rating (with the Applicable Facility
Fee Rate in effect prior to the issuance of such corporate credit rating or bank
loan rating being the same as the Applicable Facility Fee Rate in effect at the
time the senior unsecured long-term debt rating ceases to be in effect).

     "Applicable Margin" means, for any day, at such times as a debt rating
(either express or implied) by S&P or Moody's (or in the event that both cease
the issuance of debt ratings generally, such other ratings agency agreed to by
the Borrower and the Administrative Agent) is

                                       2
<PAGE>

in effect on the Borrower's non-credit enhanced senior unsecured long-term debt,
the percentage per annum set forth opposite such debt rating:

     Debt Rating                                  Percentage
     -----------                                  ----------

     A+/A1 or above                               0.190%

     A/A2                                         0.230%

     A-/A3                                        0.320%

     BBB+/Baa1                                    0.475%

     BBB/Baa2                                     0.600%

     BBB-/Baa3 or below                           0.725%

If the ratings issued by S&P and Moody's differ (i) by one rating, the higher
rating shall apply to determine the Applicable Margin, (ii) by two ratings, the
rating which falls between them shall apply to determine the Applicable Margin,
or (iii) by more than two ratings, the rating immediately above the lower of the
two ratings shall apply to determine the Applicable Margin.  The Borrower shall
give written notice to the Administrative Agent of any changes to such ratings,
within three (3) Business Days thereof, and any change to the Applicable Margin
shall be effective on the date of the relevant change.  Notwithstanding the
foregoing, (i) the Applicable Margin in effect at all times during the first six
months after the Initial Availability Date shall in no event be less than a
percentage per annum equal to 0.475%, and (ii) if the Borrower shall at any time
fail to have in effect such a debt rating on the Borrower's non-credit enhanced
senior unsecured long-term debt, the Borrower shall seek and obtain (if not
already in effect), within thirty (30) days after such debt rating first ceases
to be in effect, a corporate credit rating or a bank loan rating from Moody's or
S&P, or both, and the Applicable Margin shall thereafter be based on such
ratings in the same manner as provided herein with respect to the Borrower's
senior unsecured long-term debt rating (with the Applicable Margin in effect
prior to the issuance of such corporate credit rating or bank loan rating being
the same as the Applicable Margin in effect at the time the senior unsecured
long-term debt rating ceases to be in effect).

     "Applicable Utilization Fee Rate" means for any day, at such times as a
debt rating (either express or implied) by S&P or Moody's (or in the event that
both cease the issuance of debt ratings generally, such other ratings agency
agreed to by the Borrower and the Administrative Agent) is in effect on the
Borrower's non-credit enhanced senior unsecured long-term debt, the percentage
per annum set forth opposite such debt rating:

     Debt Rating                                  Percentage
     -----------                                  ----------

     A+/A1 or above                               0.075%

     A/A2                                         0.100%

                                       3
<PAGE>

     A-/A3                                        0.100%

     BBB+/Baa1                                    0.125%

     BBB/Baa2                                     0.125%

     BBB-/Baa3 or below                           0.150%

If the ratings issued by S&P and Moody's differ (i) by one rating, the higher
rating shall apply to determine the Applicable Utilization Fee Rate, (ii) by two
ratings, the rating which falls between them shall apply to determine the
Applicable Utilization Fee Rate, or (iii) by more than two ratings, the rating
immediately above the lower of the two ratings shall apply to determine the
Applicable Utilization Fee Rate.  The Borrower shall give written notice to the
Administrative Agent of any changes to such ratings, within three (3) Business
Days thereof, and any change to the Applicable Utilization Fee Rate shall be
effective on the date of the relevant change.  Notwithstanding the foregoing,
(i) the Applicable Utilization Fee Rate in effect at all times during the first
six months after the Initial Availability Date shall in no event be less than a
percentage per annum equal to 0.125%, and (ii) if the Borrower shall at any time
fail to have in effect such a debt rating on the Borrower's non-credit enhanced
senior unsecured long-term debt, the Borrower shall seek and obtain (if not
already in effect), within thirty (30) days after such debt rating first ceases
to be in effect, a corporate credit rating or a bank loan rating from Moody's or
S&P, or both, and the Applicable Utilization Fee Rate shall thereafter be based
on such ratings in the same manner as provided herein with respect to the
Borrower's senior unsecured long-term debt rating (with the Applicable
Utilization Fee Rate in effect prior to the issuance of such corporate credit
rating or bank loan rating being the same as the Applicable Utilization Fee Rate
in effect at the time the senior unsecured long-term debt rating ceases to be in
effect).

     "Application" means an application for a Letter of Credit as defined in
Section 2.13(b).

     "Assignment Agreement" means an agreement in substantially the form of
Exhibit 10.10 whereby a Lender conveys part or all of its Commitment, Loans and
-------------
participations in Letters of Credit to another Person that is, or thereupon
becomes, a Lender, or increases its Commitments, outstanding Loans and
outstanding participations in Letters of Credit, pursuant to Section 10.10.

     "Base Rate" means for any day the greater of:

          (i)  the fluctuating commercial loan rate announced by the
Administrative Agent from time to time at its Atlanta, Georgia office (or other
corresponding office, in the case of any successor Administrative Agent) as its
prime rate or base rate for U.S. Dollar loans in the United States of America in
effect on such day (which base rate may not be the lowest rate charged by such
Lender on loans to any of its customers), with any change in the Base Rate
resulting from a change in such announced rate to be effective on the date of
the relevant change; and

                                       4
<PAGE>

          (ii)  the sum of (x) the rate per annum (rounded upwards, if
necessary, to the nearest 1/16th of 1%) equal to the weighted average of the
rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the next Business Day, provided that (A)
if such day is not a Business Day, the rate on such transactions on the
immediately preceding Business Day as so published on the next Business Day
shall apply, and (B) if no such rate is published on such next Business Day, the
rate for such day shall be the average of the offered rates quoted to the
Administrative Agent by two (2) federal funds brokers of recognized standing on
such day for such transactions as selected by the Administrative Agent, plus (y)
a percentage per annum equal to one-half of one percent (1/2%) per annum.

     "Base Rate Loan" means a Loan bearing interest prior to maturity at the
rate specified in Section 2.7(a).

     "Borrower" means Transocean Sedco Forex Inc., a company organized under the
laws of the Cayman Islands, and its successors.

     "Borrowing" means any extension of credit of the same Type made by the
Lenders on the same date by way of Revolving Loans or a Competitive Loan or
group of Competitive Loans having a single Interest Period, or a Letter of
Credit, including any Borrowing advanced, continued or converted.  A Borrowing
is "advanced" on the day the Lenders advance funds comprising such Borrowing to
the Borrower or a Letter of Credit is issued, increased or extended, is
"continued" (in the case of Eurocurrency Revolving Loans) on the date a new
Interest Period commences for such Borrowing, and is "converted" (in the case of
Eurocurrency Revolving Loans) when such Borrowing is changed from one Type of
Loan to the other, all as requested by the Borrower pursuant to Section 2.3.

     "Business Day" means any day other than a Saturday or Sunday on which banks
are not authorized or required to close in Atlanta, Georgia or New York, New
York and, if the applicable Business Day relates to the advance or continuation
of, conversion into, or payment on a Eurocurrency Borrowing or Competitive
Borrowing, on which banks are dealing in Dollar deposits in the interbank
eurodollar market in London, England.

     "Capitalized Lease Obligations" means, for any Person, the aggregate amount
of such Person's liabilities under all leases of real or personal property (or
any interest therein) which is required to be capitalized on the balance sheet
of such Person as determined in accordance with GAAP.

     "Cash Equivalents" means (i) securities issued or directly and fully
guaranteed or insured by the United States of America or any agency or
instrumentality thereof having maturities of not more than twelve (12) months
from the date of acquisition, (ii) time deposits and certificates of deposits
maturing within one year from the date of acquisition thereof or repurchase
agreements with financial institutions whose short-term unsecured debt rating is
A or above as obtained from either S&P or Moody's, (iii) commercial paper or
Eurocommercial paper with a rating of at least A-1 by S&P or at least P-1 by
Moody's, with maturities of not more than twelve (12) months from the date of
acquisition, (iv) repurchase obligations entered into with any

                                       5
<PAGE>

Lender, or any other Person whose short-term senior unsecured debt rating from
S&P is at least A-1 or from Moody's is at least P-1, which are secured by a
fully perfected security interest in any obligation of the type described in (i)
above and has a market value of the time such repurchase is entered into of not
less than 100% of the repurchase obligation of such Lender or such other Person
thereunder, (v) marketable direct obligations issued by any state of the United
States of America or any political subdivision of any such state or any public
instrumentality thereof maturing within twelve (12) months from the date of
acquisition thereof or providing for the resetting of the interest rate
applicable thereto not less often than annually and, at the time of acquisition,
having one of the two highest ratings obtainable from either S&P or Moody's, and
(vi) money market funds which have at least $1,000,000,000 in assets and which
invest primarily in securities of the types described in clauses (i) through (v)
above.

     "Class", when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are Revolving Loans or
Competitive Loans.

     "Code" means the Internal Revenue Code of 1986, as amended.

     "Collateral" means all property and assets of the Borrower in which the
Administrative Agent or the Collateral Agent is granted a Lien for the benefit
of the Lenders under the terms of Section 7.4.

     "Collateral Account" means the cash collateral account for outstanding
undrawn Letters of Credit defined in Section 7.4(b).

     "Collateral Agent" means STB acting in its capacity as collateral agent for
the Lenders, and any successor collateral agent appointed hereunder pursuant to
Section 9.7.

     "Commitment" means, relative to any Lender, such Lender's obligations to
make Revolving Loans and participate in Letters of Credit pursuant to Sections
2.1 and 2.13, initially in the amount and percentage set forth opposite its
signature hereto or pursuant to Section 10.10, as such obligations may be
reduced or increased from time to time as expressly provided pursuant to this
Agreement.

     "Commitment Termination Date" means the earliest of (i) December 27, 2001,
or such later date to which the Existing Commitment Termination Date has been
extended pursuant to Section 2.15, (ii) the date on which the Commitments are
terminated in full or reduced to zero pursuant to Section 2.14, and (iii) the
occurrence of any Event of Default described in Section 7.1(f) or (g) with
respect to the Borrower or the occurrence and continuance of any other Event of
Default and either (x) the declaration of the Loans to be due and payable
pursuant to Section 7.2, or (y) in the absence of such declaration, the giving
of written notice by the Administrative Agent, acting at the direction of the
Required Lenders, to the Borrower pursuant to Section 7.2 that the Commitments
have been terminated.

     "Competitive Bid" means an offer by a Lender to make a Competitive Loan in
accordance with Section 2.4.

                                       6
<PAGE>

     Competitive Bid Rate" means, with respect to any Competitive Bid, the
Competitive Margin or the Competitive Fixed Rate, as applicable, offered by the
Lender making such Competitive Bid.

     "Competitive Bid Request" means a request by the Borrower for Competitive
Bids in accordance with Section 2.4.

     "Competitive Borrowing" means a Borrowing of a Competitive Loan or group of
Competitive Loans pursuant to Section 2.4.

     "Competitive Fixed Rate" means, with respect to any Competitive Loan (other
than a Competitive Margin Loan), the fixed rate of interest per annum specified
by the Lender making such Competitive Loan in its related Competitive Bid.

     "Competitive Fixed Rate Loan" means a Competitive Loan bearing interest at
a Competitive Fixed Rate.

     "Competitive Loan" means a Competitive Margin Loan or a Competitive Fixed
Rate Loan made pursuant to Section 2.4.

     "Competitive Margin" means, with respect to any Competitive Loan bearing
interest at a rate based on the LIBOR Rate, the marginal rate of interest, if
any, to be added to or subtracted from the LIBOR Rate to determine the rate of
interest applicable to such Loan, as specified by the Lender making such Loan in
its related Competitive Bid.

     "Competitive Margin Loan" means a Competitive Loan bearing interest
determined by reference to the LIBOR Rate and a Competitive Margin.

     "Compliance Certificate" means a certificate in the form of Exhibit 6.6.
                                                                 -----------

     "Confidential Information Memorandum" shall mean the Confidential
Information Memorandum of the Borrower dated October 2000, as the same may be
amended, restated and supplemented from time to time and distributed to the
Lenders prior to the Effective Date.

     "Consolidated EBITDA" means, for any period, for the Borrower and its
Subsidiaries, the sum of (a) net income or net loss (before discontinued
operations and income or loss resulting from extraordinary items), plus (b) the
sum of (i) Consolidated Interest Expense, (ii) income tax expense, (iii)
depreciation expense, (iv) amortization expense, and (v) other non-cash charges,
all determined in accordance with GAAP on a consolidated basis for the Borrower
and its Subsidiaries (excluding, in the case of the foregoing clauses (a) and
(b), any net income or net loss and expenses and charges of any SPVs or other
Persons that are not Subsidiaries), plus (c) dividends or distributions received
during such period by the Borrower and its Subsidiaries from SPVs and any other
Persons that are not Subsidiaries.  For purposes of the foregoing, Consolidated
EBITDA for the Borrower and its Subsidiaries shall not include any such amounts
attributable to any Subsidiary or business acquired during such period by the
Borrower or any Subsidiary to the extent such amounts relate to any period prior
to the acquisition thereof.

                                       7
<PAGE>

     "Consolidated Indebtedness" means all Indebtedness of the Borrower and its
Subsidiaries that would be reflected on a consolidated balance sheet of such
Persons prepared in accordance with GAAP.

     "Consolidated Indebtedness to Total Capitalization Ratio" means, at any
time, the ratio of Consolidated Indebtedness at such time to Total
Capitalization at such time.

     "Consolidated Interest Expense" means, for any period, total interest
expense of the Borrower and its Subsidiaries on a consolidated basis for such
period, in connection with Indebtedness, all as determined in accordance with
GAAP, but excluding capitalized interest expense and interest expense
attributable to expected federal income tax settlements.  For purposes of the
foregoing, Consolidated Interest Expense for the Borrower and its Subsidiaries
shall not include any such interest expense attributable to any Subsidiary or
business acquired during such period by the Borrower or any Subsidiary to the
extent such interest expense relates to any period prior to the acquisition
thereof.

     "Consolidated Net Assets" means, as of any date of determination, an amount
equal to the aggregate book value of the assets of the Borrower, its
Subsidiaries and, to the extent of the equity interest of the Borrower and its
Subsidiaries therein, SPVs at such time, minus the current liabilities of the
Borrower and its Subsidiaries, all as determined on a consolidated basis in
accordance with GAAP.

     "Consolidated Net Worth" means, as of any date of determination,
consolidated shareholders equity of the Borrower and its Subsidiaries determined
in accordance with GAAP (but excluding the effect on shareholders equity of
cumulative foreign exchange translation adjustments).  For purposes of this
definition, SPVs shall be accounted for pursuant to the equity method of
accounting.

     "Controlling Affiliate" means for the Borrower, (i) any other Person that
directly or indirectly through one or more intermediaries controls, or is under
common control with, the Borrower (other than Persons controlled by the
Borrower), and (ii) any other Person owning beneficially or controlling ten
percent (10%) or more of the equity interests in the Borrower.  As used in this
definition, "control" means the power, directly or indirectly, to direct or
cause the direction of management or policies of a Person (through ownership of
voting securities or other equity interests, by contract or otherwise).

     "Credit Documents" means this Agreement, the Notes, the Applications, the
Letters of Credit, and any Subsidiary Guaranties in effect from time to time.

     "Default" means any event or condition the occurrence of which would, with
the passage of time or the giving of notice, or both, constitute an Event of
Default.

     "Documentation Agent" shall mean Bank of America, N.A., in its capacity as
documentation agent for the Lenders, and any successor Documentation Agent
appointed

                                       8
<PAGE>

pursuant to Section 9.7; provided, however, that no such Documentation Agent
shall have any duties, responsibilities, or obligations hereunder in such
capacity.

     "Dollar" and "U.S. Dollar" and the sign "$" mean lawful money of the United
States of America.

     "Effective Date" means the date this Agreement shall become effective as
defined in Section 10.16.

     "Environmental Claims" means any and all administrative, regulatory or
judicial actions, suits, demands, demand letters, claims, liens, notices of non-
compliance or violation, investigations or proceedings relating to any
Environmental Law ("Claims") or any permit issued under any Environmental Law,
including, without limitation, (i) any and all Claims by governmental or
regulatory authorities for enforcement, cleanup, removal, response, remedial or
other actions or damages pursuant to any applicable Environmental Law, and (ii)
any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief resulting from
Hazardous Materials or arising from alleged injury or threat of injury to the
environment.

     "Environmental Law" means any federal, state or local statute, law, rule,
regulation, ordinance, code, policy or rule of common law now or hereafter in
effect, including any judicial or administrative order, consent, decree or
judgment, relating to the environment.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

     "Eurocurrency", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, shall bear interest
at a rate determined by reference to (i) in the case of a Revolving Loan or
Revolving Borrowing, Adjusted LIBOR and the Applicable Margin, or (ii) in the
case of a Competitive Loan or Competitive Borrowing, the LIBOR Rate and the
Competitive Margin.

     "Eurocurrency Loan" means a Eurocurrency Revolving Loan or a Competitive
Margin Loan, as the case may be.

     "Eurocurrency Revolving Loan" means a Revolving Loan bearing interest
before maturity at the rate specified in Section 2.7(b).

     "Event of Default" means any of the events or circumstances specified in
Section 7.1.

     "Five-Year Credit Agreement" means the Credit Agreement dated as of
December 29, 2000, among the Borrower, the Lenders, the Administrative Agent,
the Syndication Agent, the Documentation Agent and the Senior Managing Agent, as
the same may be amended, supplemented and restated from time to time.

     "Foreign Plan" means any pension, profit sharing, deferred compensation, or
other employee benefit plan, program or arrangement maintained by any foreign
Subsidiary of the

                                       9
<PAGE>

Borrower which, under applicable local law, is required to be funded through a
trust or other funding vehicle, but shall not include any benefit provided by a
foreign government or its agencies.

     "GAAP" means generally accepted accounting principles from time to time in
effect as set forth in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants and
the statements and pronouncements of the Financial Accounting Standards Board or
in such other statements, opinions and pronouncements by such other entity as
may be approved by a significant segment of the U.S. accounting profession.

     "Governmental Authority" means the government of the United States of
America, any other nation or any political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

     "Guarantor" means any Subsidiary of the Borrower required to execute and
deliver a Subsidiary Guaranty hereunder pursuant to Section 6.11, in each case
unless and until the relevant Subsidiary Guaranty is released pursuant to
Section 6.11.

     "Guaranty" by any Person means all contractual obligations (other than
endorsements in the ordinary course of business of negotiable instruments for
deposit or collection or similar transactions in the ordinary course of
business) of such Person guaranteeing any Indebtedness of any other Person (the
"primary obligor") in any manner, whether directly or indirectly, including,
without limitation, all obligations incurred through an agreement, contingent or
otherwise, by such Person: (i) to purchase such Indebtedness or to purchase any
property or assets constituting security therefor, primarily for the purpose of
assuring the owner of such Indebtedness of the ability of the primary obligor to
make payment of such Indebtedness; or (ii) to advance or supply funds (x) for
the purchase or payment of such Indebtedness, or (y) to maintain working capital
or other balance sheet condition, or otherwise to advance or make available
funds for the purchase or payment of such Indebtedness, in each case primarily
for the purpose of assuring the owner of such Indebtedness of the ability of the
primary obligor to make payment of such Indebtedness; or (iii) to lease
property, or to purchase securities or other property or services, of the
primary obligor, primarily for the purpose of assuring the owner of such
Indebtedness of the ability of the primary obligor to make payment of such
Indebtedness; or (iv) otherwise to assure the owner of such Indebtedness of the
primary obligor against loss in respect thereof.  For the purpose of all
computations made under this Agreement, the amount of a Guaranty in respect of
any Indebtedness shall be deemed to be equal to the amount that would apply if
such Indebtedness was the direct obligation of such Person rather than the
primary obligor or, if less, the maximum aggregate potential liability of such
Person under the terms of the Guaranty.

     "Hazardous Material" shall have the meaning assigned to that term in the
Comprehensive Environmental Response Compensation and Liability Act of 1980, as
amended by the Superfund Amendments and Reauthorization Acts of 1986, and shall
also include

                                       10
<PAGE>

petroleum, including crude oil or any fraction thereof, or any other substance
defined as "hazardous" or "toxic" or words with similar meaning and effect under
any Environmental Law applicable to the Borrower or any of its Subsidiaries.

     "Highest Lawful Rate" means the maximum nonusurious interest rate, if any,
that any time or from time to time may be contracted for, taken, reserved,
charged or received on any Loans, under laws applicable to any of the Lenders
which are presently in effect or, to the extent allowed by applicable law, under
such laws which may hereafter be in effect and which allow a higher maximum
nonusurious interest rate than applicable laws now allow.  Determination of the
rate of interest for the purpose of determining whether any Loans are usurious
under all applicable laws shall be made by amortizing, prorating, allocating,
and spreading, in equal parts during the period of the full stated term of the
Loans, all interest at any time contracted for, taken, reserved, charged or
received from the Borrower in connection with the Loans.

     "Indebtedness" means, for any Person, the following obligations of such
Person, without duplication:  (i) obligations of such Person for borrowed money;
(ii) obligations of such Person representing the deferred purchase price of
property or services other than accounts payable and accrued liabilities arising
in the ordinary course of business and other than amounts which are being
contested in good faith and for which reserves in conformity with GAAP have been
provided; (iii) obligations of such Person evidenced by bonds, notes, bankers
acceptances, debentures or other similar instruments of such Person, or
obligations of such Person arising, whether absolute or contingent, out of
letters of credit issued for such Person's account or pursuant to such Person's
application securing Indebtedness; (iv) obligations of other Persons, whether or
not assumed, secured by Liens (other than Permitted Liens) upon property or
payable out of the proceeds or production from property now or hereafter owned
or acquired by such Person, but only to the extent of such property's fair
market value; (v) Capitalized Lease Obligations of such Person; (vi) obligations
under Interest Rate Protection Agreements, and (vii) obligations of such Person
pursuant to a Guaranty of any of the foregoing obligations of another Person;
provided, however, Indebtedness shall exclude Non-recourse Debt.  For purposes
of this Agreement, the Indebtedness of any Person shall include the Indebtedness
of any partnership or joint venture to the extent such Indebtedness is recourse
to such Person.

     "Initial Availability Date" means the date on which the conditions
specified in Section 4.1 are satisfied (or waived in accordance with Section
10.11).

     "Interest Coverage Ratio" means, as of the end of any fiscal quarter, the
ratio of (i) Consolidated EBITDA for the four fiscal quarter period then ended,
minus all cash dividends paid to shareholders of the Borrower, or to holders of
preferred shares or other preferred equity interests issued by any Subsidiaries
of the Borrower where such holders are Persons other than the Borrower or any of
its Subsidiaries, during such four fiscal quarter period, and all cash income
taxes paid during such four fiscal quarter period, to (ii) Consolidated Interest
Expense for the four fiscal quarter period then ended.

     "Interest Payment Date" means (a) with respect to any Base Rate Loan, the
last day of each March, June, September and December, (b) with respect to any
Eurocurrency Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the

                                       11
<PAGE>

case of a Eurocurrency Borrowing with an Interest Period of more than three
months' duration, each day prior to the last day of such Interest Period that
occurs at intervals of three months' duration after the first day of such
Interest Period, and (c) with respect to any Competitive Fixed Rate Loan, the
last day of the Interest Period applicable to the Borrowing of which such Loan
is a part and, in the case of a Competitive Fixed Rate Borrowing with an
Interest Period of more than 90 days' duration (unless otherwise specified in
the applicable Competitive Bid Request), each day prior to the last day of such
Interest Period that occurs at intervals of 90 days' duration after the first
day of such Interest Period, and any other dates that are specified in the
applicable Competitive Bid Request as Interest Payment Dates with respect to
such Borrowing.

     "Interest Period" means (a) with respect to any Eurocurrency Borrowing, the
period commencing on the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three or six months
(or with the consent of each Lender making a Loan as part of such Borrowing, any
other period) thereafter, as the Borrower may elect, and (b) with respect to any
Competitive Fixed Rate Borrowing, the period (which shall not be less than 7
days or more than 360 days) commencing on the date of such Borrowing and ending
on the date specified in the applicable Competitive Bid Request.  For purposes
hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and, in the case of a Revolving Borrowing, thereafter shall be
the effective date of the most recent conversion or continuation of such
Borrowing.

     "Interest Rate Protection Agreement" shall mean any interest rate swap,
interest rate cap, interest rate collar, or other interest rate hedging
agreement or arrangement designed to protect against fluctuations in interest
rates.

     "Issuing Bank" is defined in the preamble.

     "L/C Documents" means the Letters of Credit, any Issuance Requests and
Applications with respect thereto, any draft or other document presented in
connection with a drawing thereunder, and this Agreement.

     "L/C Obligations" means the undrawn face amounts of all outstanding Letters
of Credit and all unpaid Reimbursement Obligations.

     "Lead Arranger" means SunTrust Equitable Securities Corporation, acting in
its capacity as lead arranger and book runner for the credit facilities
described in this Agreement.

     "Lender" is defined in the preamble.

     "Lending Office" means the branch, office or affiliate of a Lender
specified on the appropriate signature page hereof, or designated pursuant to
Sections 8.4 or 10.10, as the office through which it will make its Loans
hereunder for each type of Loan available hereunder.

     "Letter of Credit" means any of the letters of credit to be issued by the
Issuing Bank for the account of the Borrower pursuant to Section 2.13(a).

                                       12
<PAGE>

     "LIBOR Rate" means, relative to any Interest Period for each Eurocurrency
Borrowing, the rate per annum quoted at or about 11:00 a.m. (London, England
time) two Business Days before the commencement of such Interest Period on that
page of the Reuters, Telerate or Bloombergs reporting service (as then being
used by the Administrative Agent to obtain such interest rate quotes) that
displays British Bankers' Association interest settlement rates for deposits in
Dollars, or if such page or such service shall cease to be available, such other
page or other service (as the case may be) for the purpose of displaying British
Bankers' Association interest settlement rates as reasonably determined by the
Administrative Agent upon advising the Borrower as to the use of any such other
service.  If for any reason any such settlement interest rate for such Interest
Period is not available to the Administrative Agent through any such interest
rate reporting service, then the "LIBOR Rate" with respect to such Eurocurrency
Borrowing will be the rate at which the Administrative Agent is offered deposits
in Dollars of $5,000,000 for a period approximately equal to such Interest
Period in the London interbank market at 10:00 a.m. two Business Days before the
commencement of such Interest Period.

     "Lien" means any interest in any property or asset in favor of a Person
other than the owner of such property or asset and securing an obligation owed
to, or a claim by, such Person, whether such interest is based on the common
law, statute or contract, including, but not limited to, the security interest
lien arising from a mortgage, encumbrance, pledge, conditional sale, security
agreement or trust receipt, or a lease, consignment or bailment for security
purposes.

     "Loan" means (i) a Base Rate Loan, (ii) a Eurocurrency Revolving Loan,
(iii) a Competitive Margin Loan, or (iv) a Competitive Fixed Rate Loan, as the
case may be, and "Loans" means two or more of any such Loans.

     "Material Adverse Effect" means a material adverse effect on (i) the
business, assets, operations or condition of the Borrower and its Subsidiaries
taken as a whole, or (ii) the Borrower's ability to perform any of its payment
obligations under the Agreement or the Notes, or in respect of the Letters of
Credit.

     "Maturity Date" means the earlier of (i) December 27, 2001, or such later
date to which the Existing Commitment Termination Date has been extended
pursuant to Section 2.15, and (ii) the date on which the Loans have become due
and payable pursuant to Section 7.2 or 7.3.

     "Moody's" means Moody's Investors Service, Inc., or any successor thereto.

     "Non-recourse Debt" means with respect to any Person (i) obligations of
such Person against which the obligee has no recourse to such Person except as
to certain named or described present or future assets or interests of such
Person, and (ii) the obligations of SPVs to the extent the obligee thereof has
no recourse to the Borrower or any of its Subsidiaries, except as to certain
specified present or future assets or interests of SPVs.

     "Note" means any of the promissory notes of the Borrower defined in Section
2.9.

     "Obligations" means all obligations of the Borrower to pay fees, costs and
expenses hereunder, to pay principal or interest on Loans and Reimbursement
Obligations and to pay any

                                       13
<PAGE>

other obligations to the Administrative Agent or any Lender or Issuing Bank
arising under any Credit Document.

     "PBGC" means the Pension Benefit Guaranty Corporation or any successor
thereto.

     "Percentage" means, for each Lender, the percentage of the Commitments
represented by such Lender's Commitment; provided, that, if the Commitments are
terminated, each Lender's Percentage shall be calculated based on its Commitment
in effect immediately before such termination, subject to any assignments by
such Lender of Obligations pursuant to Section 10.10.

     "Performance Guaranties" means all Guaranties of the Borrower or any of its
Subsidiaries delivered in connection with the construction financing of drill
ships, offshore mobile drilling units or offshore drilling rigs for which firm
drilling contracts have been obtained by the Borrower, any of its Subsidiaries
or a SPV.

     "Performance Letters of Credit" means all letters of credit for the account
of the Borrower, any Subsidiary or a SPV issued as support for Non-recourse Debt
or a Performance Guaranty.

     "Permitted Business" has the meaning ascribed to such term in Section 6.8.

     "Permitted Liens" means the Liens permitted as described in Section 6.10.

     "Person" means an individual, partnership, corporation, limited liability
company, association, trust, unincorporated organization or any other entity or
organization, including a government or any agency or political subdivision
thereof.

     "Plan" means an employee pension benefit plan covered by Title IV of ERISA
or subject to the minimum funding standards under Section 412 of the Code that
is either (i) maintained by the Borrower or any of its Subsidiaries, or (ii)
maintained pursuant to a collective bargaining agreement or any other
arrangement under which more than one employer makes contributions and to which
the Borrower or any of its Subsidiaries is then making or accruing an obligation
to make contributions or has within the preceding five (5) plan years made or
had an obligation to make contributions.

     "R&B Falcon" means R&B Falcon Corporation, a Delaware corporation.

     "Reimbursement Obligations" has the meaning ascribed to such term in
Section 2.13(c).

     "Related Credit Extensions" has the meaning ascribed to such term in
Section 2.15(c).

     "Required Lenders" means, at any time, Lenders having Revolving Credit
Exposures and unused Commitments representing more than 50% of the sum of the
total Revolving Credit Exposures and unused Commitments at such time; provided
that, for purposes of declaring the Loans to be due and payable pursuant to
Article 7, and for all purposes after the Loans become due and payable pursuant
to Article 7 or the Commitments expire or terminate, the outstanding

                                       14
<PAGE>

Competitive Loans of the Lenders shall be included in their respective Revolving
Credit Exposures in determining the Required Lenders.

     "Revolving Credit" means the credit facility for making Revolving Loans and
issuing Letters of Credit described in Sections 2.1 and 2.13.

     "Revolving Credit Commitment Amount" means an amount equal to $250,000,000,
as such amount may be reduced from time to time pursuant to the terms of this
Agreement.

     "Revolving Credit Exposure" means, with respect to any Lender at any time,
the sum at such time, without duplication, of (i) such Lender's applicable
Percentage of the principal amounts of the outstanding Revolving Loans, and (ii)
such Lender's applicable Percentage of the aggregate outstanding L/C
Obligations.

     "Revolving Loan" means the revolving loans defined in Section 2.1.

     "Revolving Notes" means certain promissory notes of the Borrower as defined
in Section 2.9.

     "Revolving Obligations" means the sum of the principal amount of all
Revolving Loans and L/C Obligations outstanding.

     "Sale-Leaseback Transaction" means any arrangement whereby the Borrower or
a Subsidiary shall sell or transfer any property, real or personal, used or
useful in its business, whether now owned or hereafter acquired, and thereafter
rent or lease property that it intends to use for substantially the same purpose
or purposes as the property sold or transferred.

     "Senior Managing Agent" means Wells Fargo Bank Texas, National Association
in its capacity as senior managing agent for the Lenders, and any successor
Senior Managing Agent appointed pursuant to Section 9.7; provided, however, that
the Senior Managing Agent shall have no duties, responsibilities, or obligations
hereunder in such capacity.

     "S&P" means Standard & Poor's Ratings Group or any successor thereto.

     "SPV" means any Person that is designated by the Borrower as a SPV,
provided that the Borrower shall not designate as a SPV any Subsidiary that
owns, directly or indirectly, any other Subsidiary that has total assets
(including assets of any Subsidiaries of such other Subsidiary, but excluding
any assets that would be eliminated in consolidation with the Borrower and its
Subsidiaries) which equates to at least five percent (5%) of the Borrower's
Total Assets, or that had net income (including net income of any Subsidiaries
of such other Subsidiary, all before discontinued operations and income or loss
resulting from extraordinary items, all determined in accordance with GAAP, but
excluding revenues and expenses that would be eliminated in consolidation with
the Borrower and its Subsidiaries) during the most recently completed fiscal
year of the Borrower in excess of the greater of (i) $1,000,000, and (ii)
fifteen percent (15%) of the net income (before discontinued operations and
income or loss resulting from extraordinary items) for the Borrower and its
Subsidiaries, all as determined on a consolidated basis in

                                       15
<PAGE>

accordance with GAAP during such fiscal year of the Borrower. The Borrower may
elect to treat any Subsidiary as a SPV (provided such Subsidiary would otherwise
qualify as such), and may rescind any such prior election, by giving written
notice thereof to the Administrative Agent specifying the name of such
Subsidiary or SPV, as the case may be, and the effective date of such election,
which shall be a date within sixty (60) days after the date such notice is
given. The election to treat a particular Person as a SPV may only be made once.

     "Significant Subsidiary" has the meaning ascribed to it under Regulation
S-X promulgated under the Securities Exchange Act of 1934, as amended.

     "Statutory Reserve Rate" means, with respect to any currency, a fraction
(expressed as a decimal), the numerator of which is the number 1 and the
denominator of which is the number 1 minus the aggregate of the maximum reserve,
liquid asset or similar percentages (including any marginal, special, emergency
or supplemental reserves) expressed as a decimal established by any Governmental
Authority of the United States or of the jurisdiction of such currency or any
jurisdiction in which Loans in such currency are made to which banks in such
jurisdiction are subject for any category of deposits or liabilities customarily
used to fund loans in such currency or by reference to which interest rates
applicable to loans in such currency are determined.  Such reserve, liquid asset
or similar percentages shall include those imposed pursuant to Regulation D of
the Board of Governors of the Federal Reserve System.  Eurocurrency Loans shall
be deemed to be subject to such reserve requirements without benefit of or
credit for proration, exemptions or offsets that may be available from time to
time to any Lender under Regulation D or any other applicable law, rule or
regulation.  The Statutory Reserve Rate shall be adjusted automatically on and
as of the effective date of any change in any reserve percentage.

     "Subsidiary" means, for any Person, any other Person (other than, except in
the context of Section 6.6(a), a SPV) of which more than fifty percent (50%) of
the outstanding stock or comparable equity interests having ordinary voting
power for the election of the board of directors of such corporation, any
managers of such limited liability company or similar governing body
(irrespective of whether or not at the time stock or other equity interests of
any other class or classes of such corporation or other entity shall have or
might have voting power by reason of the happening of any contingency), is at
the time directly or indirectly owned by such former Person or by one or more of
its Subsidiaries.

     "Subsidiary Debt Basket Amount" has the meaning ascribed to such term in
Section 6.11(i).

     "Subsidiary Guaranty" means any Guaranty of any Subsidiary delivered
pursuant to Section 6.11(j).

     "Syndication Agent" shall mean ABN AMRO Bank, N.V., acting in its capacity
as syndication agent for the Lenders, and any successor Syndication Agent
appointed hereunder pursuant to Section 9.7; provided, however, that no such
Syndication Agent shall have any duties, responsibilities, or obligations
hereunder in such capacity.

     "Taxes" has the meaning set forth in Section 5.12.

                                       16
<PAGE>

     "Total Assets" means, as of any date of determination, the aggregate book
value of the assets of the Borrower and its Subsidiaries determined on a
consolidated basis in accordance with GAAP as of such date.

     "Total Capitalization" means, as of any date of determination, the sum of
Consolidated Indebtedness plus Consolidated Net Worth as of such date.

     "Transocean R&B Falcon Joint Proxy Statement" means the joint proxy
statement/prospectus of the Borrower and R&B Falcon dated November 3, 2000, as
the same may be amended or supplemented from time to time.

     "Transocean/ABN Revolving Credit Facility" the Credit Agreement dated as of
July 30, 1996, among the Borrower (formerly Transocean Offshore Inc.), ABN AMRO
Bank N.V., Houston Agency, as Agent, and the lenders parties thereto, as such
Credit Agreement has been amended and is in effect as of the Effective Date.

     "Type", when used in reference to any Loan or Borrowing, refers to whether
the rate of interest on such Loan, or on the Loans comprising such Borrowing, is
determined by reference to Adjusted LIBOR or the Base Rate (in the case of a
Revolving Loan or Borrowing), or the LIBOR Rate or a Competitive Fixed Rate (in
the case of a Competitive Loan or Borrowing).

     "Unfunded Vested Liabilities" means, for any Plan at any time, the amount
(if any) by which the present value of all vested nonforfeitable accrued
benefits under such Plan exceeds the fair market value of all Plan assets
allocable to such benefits, determined as of the then most recent valuation date
for such Plan, but only to the extent that such excess represents a potential
liability of the Borrower or any of its Subsidiaries to the PBGC or such Plan.

     Section 1.2.   Time of Day. Unless otherwise expressly provided, all
                    -----------
references to time of day in this Agreement and the other Credit Documents shall
be references to New York, New York time.

     Section 1.3.   Accounting Terms; GAAP. Except as otherwise expressly
                    ----------------------
provided herein, and subject to the provisions of Section 10.19, all terms of an
accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time.

ARTICLE 2.  THE CREDIT FACILITIES.

     Section 2.1.   Commitments for Revolving Loans.  Subject to the terms and
                    -------------------------------
conditions hereof, each Lender severally and not jointly agrees to make one or
more loans (each a "Revolving Loan") to the Borrower from time to time before
the Commitment Termination Date on a revolving basis in an aggregate amount not
to exceed at any time outstanding an amount equal to its Commitment, subject to
any reductions thereof pursuant to the terms of this Agreement; provided,
however, that no Lender shall be permitted or required to make any Revolving
Loan if, after giving effect thereto, (i) the aggregate principal amount of the
Revolving Loans, the Competitive Loans and the L/C Obligations of all Lenders
would thereby

                                       17
<PAGE>

exceed the Revolving Credit Commitment Amount then in effect; or (ii) the
Revolving Credit Exposure of such Lender would thereby exceed its Commitment
then in effect. Each Borrowing of Revolving Loans shall be made ratably from the
Lenders in proportion to their respective Percentages. Revolving Loans may be
repaid, in whole or in part, and all or any portion of the principal amount
thereof reborrowed, before the Commitment Termination Date, subject to the terms
and conditions hereof. Funding of all Revolving Loans shall be in Dollars.

     Section 2.2.   Types of Revolving Loans and Minimum Borrowing Amounts.
                    -------------------------------------------------------
Borrowings of Revolving Loans may be outstanding as either Base Rate Loans or
Adjusted LIBOR Loans, as selected by the Borrower pursuant to Section 2.3.  Each
Borrowing of Base Rate Loans shall be in an amount of not less than $1,000,000
and each Borrowing of Adjusted LIBOR Loans shall be in an amount of not less
than $5,000,000 and in an integral multiple of $100,000.

     Section 2.3.   Manner of Revolving Borrowings.
                    ------------------------------

     (a)  Notice to Administrative Agent. The Borrower shall give notice to the
          ------------------------------
Administrative Agent by no later than 12:00 p.m. (i) at least three (3) Business
Days before the date on which the Borrower requests the Lenders to advance a
Borrowing of Eurocurrency Revolving Loans, and (ii) on the date the Borrower
requests the Lenders to advance a Borrowing of Base Rate Loans, in each case
pursuant to a duly executed Borrowing Request substantially in the form of
Exhibit 2.3 (each a "Revolver Borrowing Request"). The Loans included in each
-----------
Revolving Borrowing shall bear interest initially at the type of rate specified
in the Revolver Borrowing Request with respect to such Borrowing. Thereafter,
the Borrower may from time to time elect to change or continue the type of
interest rate borne by each Borrowing or, subject to the minimum amount
requirement in Section 2.2 for each outstanding Borrowing, a portion thereof, as
follows: (i) if such Borrowing is of Eurocurrency Revolving Loans, the Borrower
may continue part or all of such Borrowing as Eurocurrency Revolving Loans for
an Interest Period specified by the Borrower or convert part or all of such
Borrowing into Base Rate Loans on the last day of the Interest Period applicable
thereto, or the Borrower may earlier convert part or all of such Borrowing into
Base Rate Loans so long as it pays the breakage fees and funding losses provided
in Section 2.12; and (ii) if such Borrowing is of Base Rate Loans, the Borrower
may convert all or part of such Borrowing into Eurocurrency Revolving Loans for
an Interest Period specified by the Borrower on any Business Day, in each case
pursuant to notices of continuation or conversion as set forth below. The
Borrower may select multiple Interest Periods for the Eurocurrency Revolving
Loans constituting any particular Borrowing, provided that at no time shall the
number of different Interest Periods for outstanding Eurocurrency Revolving
Loans exceed twenty (20) (it being understood for such purposes that (x)
Interest Periods of the same duration, but commencing on different dates, shall
be counted as different Interest Periods, and (y) all Interest Periods
commencing on the same date and of the same duration and currency shall be
counted as one Interest Period regardless of the number of Borrowings or Loans
involved. Notices of the continuation of Eurocurrency Revolving Loans for an
additional Interest Period or of the conversion of part or all of Eurocurrency
Revolving Loans into Base Rate Loans or of Base Rate Loans into Eurocurrency
Revolving Loans must be given by no later than 12:00 p.m. at least three (3)
Business Days before the date of the requested continuation or conversion. The
Borrower shall give such notices concerning the advance,

                                       18
<PAGE>

continuation, or conversion of a Borrowing by telephone or facsimile (which
notice shall be irrevocable once given and, if by telephone, shall be promptly
confirmed in writing) pursuant to a Revolver Borrowing Request which shall
specify the date of the requested advance, continuation or conversion (which
shall be a Business Day), the amount of the requested Borrowing, whether such
Borrowing is to be advanced, continued, or converted, the type of Loans to
comprise such new, continued or converted Borrowing and, if such Borrowing is to
be comprised of Eurocurrency Revolving Loans, the Interest Period applicable
thereto. The Borrower agrees that the Administrative Agent may rely on any such
telephonic or facsimile notice given by any Person it in good faith believes is
an authorized representative of the Borrower without the necessity of
independent investigation and that, if any such notice by telephone conflicts
with any written confirmation, such telephonic notice shall govern if the
Administrative Agent has acted in reliance thereon.

     (b)  Notice to the Lenders. The Administrative Agent shall give prompt
          ---------------------
telephonic, telex or facsimile notice to each Lender of any notice received
pursuant to Section 2.3(a) relating to a Revolving Borrowing. The Administrative
Agent shall give notice to the Borrower and each Lender by like means of the
interest rate applicable to each Borrowing of Eurocurrency Revolving Loans (but,
if such notice is given by telephone, the Administrative Agent shall confirm
such rate in writing) promptly after the Administrative Agent has made such
determination.

     (c)  Borrower's Failure to Notify.  If the Borrower fails to give notice
          ----------------------------
pursuant to Section 2.3(a) of (i) the continuation or conversion of any
outstanding principal amount of a Borrowing of Eurocurrency Revolving Loans, or
(ii) a Borrowing of Revolving Loans to pay outstanding Reimbursement
Obligations, and has not notified the Administrative Agent by 12:00 p.m. at
least three (3) Business Days before the last day of the Interest Period for any
Borrowing of Eurocurrency Revolving Loans, or by the day such Reimbursement
Obligation becomes due, as the case may be, that it intends to repay such
Borrowing or Reimbursement Obligation, the Borrower shall be deemed to have
requested, as applicable, (x) the continuation of such Borrowing as a
Eurocurrency Revolving Loan with an Interest Period of one (1) month or (y) the
advance of a new Borrowing of Base Rate Loans on such day in the amount of the
Reimbursement Obligation then due, which Borrowing pursuant to this clause (y)
shall be deemed to have been funded on such date by the Lenders in accordance
with Section 2.3(a) and to have been applied on such day to pay the
Reimbursement Obligation then due, in each case so long as no Event of Default
shall have occurred and be continuing or would occur as a result of such
Borrowing but otherwise disregarding the conditions to Borrowings set forth in
Section 4.2. Upon the occurrence and during the continuance of any Event of
Default, (i) each Eurocurrency Revolving Loan will automatically, on the last
day of the then existing Interest Period therefor, convert into a Base Rate
Loan, and (ii) the obligation of the Lenders to make, continue or convert Loans
into Eurocurrency Revolving Loans shall be suspended.

     (d)  Conversion.  If the Borrower shall elect to convert any particular
          ----------
Borrowing from one Type of Loan to the other only in part, then, from and after
the date on which such conversion shall be effective, such particular Borrowing
shall, for all purposes of this Agreement (including, without limitation, for
purposes of subsequent application of this sentence) be deemed to instead
constitute two Borrowings (each originally advanced on the same date as such

                                       19
<PAGE>

particular Borrowing), one comprised of (subject to subsequent conversion in
accordance with this Agreement) Eurocurrency Revolving Loans in an aggregate
principal amount equal to the portion of such Borrowing so elected by the
Borrower to be comprised of Eurocurrency Revolving Loans and the second
comprised of (subject to subsequent conversion in accordance with this
Agreement) Base Rate Loans in an aggregate principal amount equal to the portion
of such particular Borrowing so elected by the Borrower to be comprised of Base
Rate Loans. If the Borrower shall elect to have multiple Interest Periods apply
to any particular Borrowing comprised of Eurocurrency Revolving Loans, then,
from and after the date such multiple Interest Periods commence, such particular
Borrowing shall, for all purposes of this Agreement (including, without
limitation, for purposes of subsequent application of this sentence), be deemed
to constitute a number of separate Borrowings (each originally advanced on the
same date as such particular Borrowing) equal to the number of, and
corresponding to, the different Interest Periods so selected, each such deemed
separate Borrowing corresponding to a particular selected Interest Period
comprised of (subject to subsequent conversion in accordance with this
Agreement) Eurocurrency Revolving Loans in an aggregate principal amount equal
to the portion of such particular Borrowing so elected by the Borrower to have
such Interest Period. This Section 2.3(d) shall be applied appropriately in the
event that the Borrower shall make the elections described in the two preceding
sentences at the same time with respect to the same particular Borrowing.

     Section 2.4.   Competitive Bid Procedure.
                    -------------------------

     (a)  Competitive Bid Requests. Subject to the terms and conditions set
          ------------------------
forth herein, from time to time before the Commitment Termination Date, the
Borrower may request Competitive Bids and may (but shall not have any obligation
to) accept Competitive Bids and borrow Competitive Loans. To request Competitive
Bids, the Borrower shall notify the Administrative Agent of such request by
telephone in the case of a Borrowing of Competitive Margin Loans, not later than
11:00 a.m., four (4) Business Days before the date of the proposed Borrowing
and, in the case of a Borrowing of Competitive Fixed Rate Loans, not later than
10:00 a.m., one (1) Business Day before the date of the proposed Borrowing;
provided that a Competitive Bid Request shall not be made within five (5)
Business Days after the date of any previous Competitive Bid Request, unless any
and all such previous Competitive Bids received in response thereto shall have
been withdrawn, rejected or accepted. Each such telephonic Competitive Bid
Request shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Competitive Bid Request in the form of Exhibit
                                                                         -------
2.4A or such other form as shall be approved by the Administrative Agent and the
----
Borrower and signed by the Borrower. Each such telephonic and written
Competitive Bid Request shall specify the following information in compliance
with Section 2.3(a):

          (i)    the aggregate amount of the requested Competitive Borrowing;

          (ii)   the date of such Borrowing, which shall be a Business Day;

          (iii)  whether such Borrowing is to consist of Competitive Margin
     Loans or Competitive Fixed Rate Loans;

                                       20
<PAGE>

          (iv)   the Interest Period to be applicable to such Borrowing, which
     shall be a period contemplated by the definition of the term "Interest
     Period"; and

          (v)    the location and number of the Borrower's account to which
     funds are to be disbursed.

Promptly following receipt of a Competitive Bid Request in accordance with this
Section, the Administrative Agent shall notify the Lenders of the details
thereof by telecopy, inviting the Lenders to submit Competitive Bids.

     (b)  Competitive Bids. Each Lender may (but shall not have any obligation
          ----------------
to) make one or more Competitive Bids to the Borrower in response to a
Competitive Bid Request. Each Competitive Bid by a Lender must be in the form of
Exhibit 2.4B or such other form as shall be approved by the Administrative Agent
------------
and the Borrower and must be received by the Administrative Agent by telecopy,
in the case of a Borrowing of Competitive Margin Loans, not later than 9:30
a.m., three (3) Business Days before the proposed date of such Borrowing, and in
the case of a Borrowing of Competitive Fixed Rate Loans, not later than 9:30
a.m., on the proposed date of such Borrowing. Competitive Bids that do not
conform substantially to the form approved by the Administrative Agent may be
rejected by the Administrative Agent, and the Administrative Agent shall notify
the applicable Lender as promptly as practicable. Each Competitive Bid shall
specify (i) the principal amount (which shall be equal to or greater than
$10,000,000 and in an integral multiple of $100,000 and which may equal the
entire principal amount of the Competitive Borrowing requested by the Borrower)
of the Competitive Loan or Loans that the Lender is willing to make, (ii) the
Competitive Bid Rate or Rates at which the Lender is prepared to make such Loan
or Loans (expressed as a percentage rate per annum in the form of a decimal to
no more than four decimal places) and (iii) the Interest Period applicable to
each such Loan and the last day thereof.

     (c)  Notice to Borrower. The Administrative Agent shall promptly notify the
          ------------------
Borrower by telecopy of the Competitive Bid Rate or Rates and the principal
amount specified in each Competitive Bid and the identity of the Lender that
shall have made such Competitive Bid.

     (d)  Acceptance of Competitive Bids. Subject only to the provisions of this
          ------------------------------
paragraph, the Borrower may accept or reject any Competitive Bid. The Borrower
shall notify the Administrative Agent by telephone, confirmed by telecopy in the
form of Exhibit 2.4D or such other form as shall be approved by the
        ------------
Administrative Agent and the Borrower, whether and to what extent it has decided
to accept or reject each Competitive Bid, in the case of a Borrowing of
Competitive Margin Loans, not later than 10:30 a.m., three (3) Business Days
before the date of the proposed Borrowing, and in the case of a Borrowing of
Competitive Fixed Rate Loans, not later than 10:30 a.m. on the date of the
proposed Borrowing; provided that (i) the failure of the Borrower to give such
notice shall be deemed to be a rejection of each Competitive Bid, (ii) the
Borrower shall not accept a Competitive Bid made at a particular Competitive Bid
Rate if the Borrower rejects a Competitive Bid made pursuant to the same
Competitive Bid Request at a lower Competitive Bid Rate, (iii) the aggregate
amount of the Competitive Bids accepted by the Borrower shall not exceed the
aggregate amount of the requested Competitive Borrowing specified in the related
Competitive Bid Request, (iv) to the extent necessary to comply with

                                       21
<PAGE>

clause (iii) above, the Borrower may accept Competitive Bids at the same
Competitive Bid Rate in part, which acceptance, in the case of multiple
Competitive Bids at such Competitive Bid Rate, shall be made pro rata in
accordance with the amount of each such Competitive Bid, and (v) except pursuant
to clause (iv) above, no Competitive Bid shall be accepted for a Competitive
Loan unless such Competitive Loan is equal to or greater than $10,000,000 and in
an integral multiple of $100,000; provided further that if a Competitive Loan
must be in an amount less than $10,000,000 because of the provisions of clause
(iv) above, such Competitive Loan may be for a minimum of $1,000,000 and in any
integral multiple of $100,000, and in calculating the pro rata allocation of
acceptances of portions of multiple Competitive Bids at a particular Competitive
Bid Rate pursuant to clause (iv), the amounts shall be rounded to integral
multiples of $100,000 in a manner determined by the Borrower. A notice given by
the Borrower pursuant to this paragraph shall be irrevocable.

     (e)  Notice of Acceptance. The Administrative Agent shall promptly notify
          --------------------
each bidding Lender by telecopy whether or not its Competitive Bid has been
accepted (and, if so, the amount and Competitive Bid Rate so accepted), and each
successful bidder will thereupon become bound, subject to the terms and
conditions hereof, to make the Competitive Loan in respect of which its
Competitive Bid has been accepted.

     (f)  Submission of Competitive Bid by Administrative Agent.  If the
          -----------------------------------------------------
Administrative Agent shall elect to submit a Competitive Bid in its capacity as
a Lender, it shall submit such Competitive Bid directly to the Borrower at least
one quarter of an hour earlier than the time by which the other Lenders are
required to submit their Competitive Bids to the Administrative Agent pursuant
to paragraph (b) of this Section.

     Section 2.5.   Interest Periods. As provided in Sections 2.3 and 2.4, at
                    ----------------
the time of each request for a Borrowing of Eurocurrency Loans or Competitive
Fixed Rate Loans, or for the continuation or conversion of any Borrowing of
Eurocurrency Revolving Loans, the Borrower shall select an Interest Period(s)
applicable to such Loans from among the available options subject to the
limitations in Sections 2.3 and 2.4; provided, however, that:

          (i)    the Borrower may not select an Interest Period for a Borrowing
     of Loans that extends beyond the Maturity Date;

          (ii)   whenever the last day of any Interest Period would otherwise be
     a day that is not a Business Day, the last day of such Interest Period
     shall either be (i) extended to the next succeeding Business Day, or (ii)
     in the case of Eurocurrency Loans only, reduced to the immediately
     preceding Business Day if the next succeeding Business Day is in the next
     calendar month; and

          (iii)  for purposes of determining an Interest Period, a month means a
     period starting on one day in a calendar month and ending on the
     numerically corresponding day in the next calendar month; provided,
     however, that if there is no such numerically corresponding day in the
     month in which an Interest Period is to end or if an Interest Period begins
     on the last Business Day of a calendar month, then in the case of

                                       22
<PAGE>

     Eurocurrency Loans only, such Interest Period shall end on the last
     Business Day of the calendar month in which such Interest Period is to end.

     Section 2.6.   Funding of Loans.
                    ----------------

     (a)  Disbursement of Loans.  Not later than 12:00 p.m. with respect to
          ---------------------
Borrowings of Eurocurrency Loans and Competitive Fixed Rate Loans, and 2:00 p.m.
with respect to Base Rate Loans, on the date of any requested advance of a new
Borrowing of Loans, each Lender, subject to all other provisions hereof, shall
make available its Loan comprising its portion of such Borrowing in funds
immediately available in Atlanta, Georgia for the benefit of the Administrative
Agent and according to the payment instructions of the Administrative Agent. The
Administrative Agent shall make the proceeds of each such Borrowing available in
immediately available funds to the Borrower (or as directed in writing by the
Borrower) on such date. In the event that any Lender does not make such amounts
available to the Administrative Agent by the time prescribed above, but such
amount is received later that day, such amount may be credited to the Borrower
in the manner described in the preceding sentence on the next Business Day (with
interest on such amount to begin accruing hereunder on such next Business Day)
provided that acceptance by the Borrower of any such late amount shall not be
deemed a waiver by the Borrower of any rights it may have against such Lender.
No Lender shall be responsible to the Borrower for any failure by another Lender
to fund its portion of a Borrowing, and no such failure by a Lender shall
relieve any other Lender from its obligation, if any, to fund its portion of a
Borrowing.

     (b)  Administrative Agent Reliance on Lender Funding. Unless the
          -----------------------------------------------
Administrative Agent shall have been notified by a Lender before the date on
which such Lender is scheduled to make payment to the Administrative Agent of
the proceeds of a Loan (which notice shall be effective upon receipt) that such
Lender does not intend to make such payment, the Administrative Agent may assume
that such Lender has made such payment when due and in reliance upon such
assumption may (but shall not be required to) make available to the Borrower the
proceeds of the Loan to be made by such Lender and, if any Lender has not in
fact made such payment to the Administrative Agent, such Lender shall, on
demand, pay to the Administrative Agent the amount made available to the
Borrower attributable to such Lender together with interest thereon for each day
during the period commencing on the date such amount was made available to the
Borrower and ending on (but excluding) the date such Lender pays such amount to
the Administrative Agent at a rate per annum equal to the Administrative Agent's
cost of funds for such amount. If such amount is not received from such Lender
by the Administrative Agent immediately upon demand, the Borrower will, on
demand, repay to the Administrative Agent the proceeds of the Loan attributable
to such Lender with interest thereon at a rate per annum equal to the interest
rate applicable to the relevant Loan, but the Borrower will in no event be
liable to pay any amounts otherwise due pursuant to Section 2.12 in respect of
such repayment. Nothing in this subsection shall be deemed to relieve any Lender
from any obligation to fund any Loans hereunder or to prejudice any rights which
the Borrower may have against any Lender as a result of any default by such
Lender hereunder.

     Section 2.7.   Applicable Interest Rates.
                    -------------------------

                                       23
<PAGE>

     (a)  Base Rate Loans. Each Base Rate Loan shall bear interest (computed on
          ---------------
the basis of a 365-day year or 366-day year, as the case may be, and actual days
elapsed excluding the date of repayment) on the unpaid principal amount thereof
from the date such Loan is made until maturity (whether by acceleration or
otherwise) or conversion to a Eurocurrency Revolving Loan, at a rate per annum
equal to the lesser of (i) the Highest Lawful Rate, or (ii) the Base Rate from
time to time in effect. The Borrower agrees to pay such interest on each
Interest Payment Date for such Loan and at maturity (whether by acceleration or
otherwise).

     (b)  Eurocurrency Loans. Each Eurocurrency Loan (whether a Revolving Loan
          ------------------
or Competitive Loan) shall bear interest (computed on the basis of a 360-day
year and actual days elapsed, excluding the date of repayment) on the unpaid
principal amount thereof from the date such Loan is made until maturity (whether
by acceleration or otherwise) or, in the case of Eurocurrency Revolving Loans,
conversion to a Base Rate Loan at a rate per annum equal to the lesser of (i)
the Highest Lawful Rate, or (ii) the sum of Adjusted LIBOR plus the Applicable
Margin (in the case of Eurocurrency Revolver Loans) or LIBOR Rate plus the
Competitive Margin (in the case of Competitive Margin Loans), as the case may
be. The Borrower agrees to pay such interest on each Interest Payment Date for
such Loan and at maturity (whether by acceleration or otherwise) or, in the case
of Eurocurrency Revolving Loans, conversion to a Base Rate Loan.

     (c)  Competitive Fixed Rate Loans. Each Competitive Fixed Rate Loan shall
          ----------------------------
bear interest (computed on the basis of a 360-day year and actual days elapsed,
in each case excluding the date of repayment) on the unpaid principal amount
thereof from the date such Loan is made until maturity (whether by acceleration
or otherwise) at a rate per annum equal to the Competitive Fixed Rate applicable
to such Loan.

     (d)  Rate Determinations.  The Administrative Agent shall determine each
          -------------------
interest rate applicable to the Loans and Reimbursement Obligations hereunder
insofar as such interest rate involves a determination of Base Rate, Adjusted
LIBOR or LIBOR Rate, or any applicable default rate pursuant to Section 2.8, and
such determination shall be conclusive and binding except in the case of the
Administrative Agent's manifest error or willful misconduct. The Administrative
Agent shall promptly give notice to the Borrower and each Lender of each
determination of Adjusted LIBOR, and to the Borrower and each Lender submitting
a Competitive Bid of each determination of LIBOR Rate, with respect to each
Eurocurrency Loan.

     Section 2.8.   Default Rate. If any payment of principal on any Loan is not
                    ------------
made when due after the expiration of the grace period therefor provided in
Section 7.1(a) (whether by acceleration or otherwise), or any Reimbursement
Obligation is not paid when due as provided in Section 2.13(c), such Loan or
Reimbursement Obligation shall bear interest (computed on the basis of a year of
360, 365 or 366 days, as applicable, and actual days elapsed) after any such
grace period expires until such principal then due is paid in full, which the
Borrower agrees to pay on demand, at a rate per annum equal to:

     (a)  for any Base Rate Loan, the lesser of (i) the Highest Lawful Rate, or
(ii) the sum of two percent (2%) per annum plus the Base Rate from time to time
in effect (but not less than the Base Rate in effect at the time such payment
was due);

                                       24
<PAGE>

     (b)  for any Eurocurrency Loan (whether a Eurocurrency Revolving Loan or
Competitive Margin Loan), the lesser of (i) the Highest Lawful Rate, or (ii) the
sum of two percent (2%) per annum plus the rate of interest in effect thereon at
the time of such default until the end of the Interest Period for such Loan and,
thereafter, at a rate per annum equal to the sum of two percent (2%) per annum
plus the Base Rate from time to time in effect (but not less than the Base Rate
in effect at the time such payment was due);

     (c)  for any Competitive Fixed Rate Loan, the lesser of (i) the Highest
Lawful Rate, or (ii) the sum of two percent (2%) per annum plus the Competitive
Fixed Rate in effect thereon at the time of such default until the end of the
Interest Period for such Loan and, thereafter, at the rate of interest that
would otherwise apply to a Eurocurrency Revolving Loan pursuant to paragraph (b)
above; and

     (d)  for any unpaid Reimbursement Obligations, the lesser of (i) the
Highest Lawful Rate, or (ii) the sum of two percent (2%) per annum plus the Base
Rate from time to time in effect (but not less than the Base Rate in effect at
the time such payment was due).

     It is the intention of the Administrative Agent and the Lenders to conform
strictly to usury laws applicable to them. Accordingly, if the transactions
contemplated hereby or any Loan or other Obligation would be usurious as to any
of the Lenders under laws applicable to it (including the laws of the United
States of America and the State of New York or any other jurisdiction whose laws
may be mandatorily applicable to such Lender notwithstanding the other
provisions of this Agreement, the Notes or any other Credit Document), then, in
that event, notwithstanding anything to the contrary in this Agreement, the
Notes or any other Credit Document, it is agreed as follows: (i) the aggregate
of all consideration which constitutes interest under laws applicable to such
Lender that is contracted for, taken, reserved, charged or received by such
Lender under this Agreement, the Notes or any other Credit Document or otherwise
shall under no circumstances exceed the Highest Lawful Rate, and any excess
shall be credited by such Lender on the principal amount of the Loans or to the
Reimbursement Obligations (or, if the principal amount of the Loans and all
Reimbursement Obligations shall have been paid in full, refunded by such Lender
to the Borrower); and (ii) in the event that the maturity of the Loans is
accelerated by reason of an election of the holder or holders thereof resulting
from any Event of Default hereunder or otherwise, or in the event of any
required or permitted prepayment, then such consideration that constitutes
interest under laws applicable to such Lender may never include more than the
Highest Lawful Rate, and excess interest, if any, provided for in this
Agreement, the Notes, any other Credit Document or otherwise shall be
automatically canceled by such Lender as of the date of such acceleration or
prepayment and, if theretofore paid, shall be credited by such Lender on the
principal amount of the Loans or to the Reimbursement Obligations (or if the
principal amount of the Loans and all Reimbursement Obligations shall have been
paid in full, refunded by such Lender to the Borrower). To the extent that the
Texas Finance Code, Chapters 302 and 303, are relevant to the Administrative
Agent and the Lenders for the purpose of determining the Highest Lawful Rate,
the Administrative Agent and the Lenders hereby elect to determine the
applicable rate ceiling under such Article by the indicated (weekly) rate
ceiling from time to time in effect, subject to their right subsequently to
change such method in accordance with applicable law. In the event the

                                       25
<PAGE>

Loans and all Reimbursement Obligations are paid in full by the Borrower prior
to the full stated term of the Loans and the interest received from the actual
period of the existence of the Loans exceeds the Highest Lawful Rate, the
Lenders shall refund to the Borrower the amount of the excess or shall credit
the amount of the excess against amounts owing under the Loans and none of the
Administrative Agent or the Lenders shall be subject to any of the penalties
provided by law for contracting for, taking, reserving, charging or receiving
interest in excess of the Highest Lawful Rate. The Texas Finance Code, Chapter
346, which regulates certain revolving credit loan accounts and revolving tri-
party accounts, shall not apply to this Agreement or the Loans.

     Section 2.9.   Repayment of Loans; Evidence of Debt.
                    ------------------------------------

     (a)  Repayment of Loans.  The Borrower hereby promises to pay (i) to the
          ------------------
Administrative Agent, for the account of each Lender, on the Maturity Date the
unpaid principal amount of each Revolving Loan then outstanding and (ii) to the
Administrative Agent, for the account of each Lender, on the last day of the
Interest Period applicable to such Loan, or, if earlier, on the Maturity Date,
the unpaid principal amount of each Competitive Loan then outstanding that is
owed to such Lender.

     (b)  Record of Loans by Lenders. Each Lender shall maintain in accordance
          --------------------------
with its usual practice an account or accounts evidencing the indebtedness of
the Borrower to such Lender resulting from each Loan made by such Lender,
including the amounts of principal and accrued interest payable and paid to such
Lender from time to time hereunder.

     (c)  Record of Loans by Administrative Agent. The Administrative Agent
          ---------------------------------------
shall maintain accounts in which it shall record (i) the amount of each Loan
made hereunder, the Class and Type thereof and the Interest Period applicable
thereto, (ii) the amount of any principal or accrued interest due and payable or
to become due and payable from the Borrower to each Lender hereunder and (iii)
the amount of any sum received by the Administrative Agent hereunder for the
account of the Lenders and each Lender's share thereof.

     (d)  Evidence of Obligations.  The entries made in the accounts maintained
          -----------------------
pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence
                                                          ----- -----
of the existence and amounts of the obligations recorded therein; provided that
                                                                  --------
the failure of any Lender or the Administrative Agent to maintain such accounts
or any error therein shall not in any manner affect the obligation of the
Borrower to repay the Loans in accordance with the terms of this Agreement.

     (e)  Notes. The Revolving Loans outstanding to the Borrower from each
          -----
Lender shall, at the request of such Lender, be evidenced by promissory notes of
the Borrower payable to such Lender in the form of Exhibit 2.9A (each a
                                                   ------------
"Revolving Note"). The Competitive Loans outstanding to the Borrower from any
Lender, shall at the request of such Lender, be evidenced by a promissory note
of the Borrower payable to such Lender in the form of Exhibit 2.9B (each a
                                                      ------------
"Competitive Note"). The Borrower agrees to execute and deliver to the
Administrative Agent, for the benefit of each Lender requesting one or more
promissory notes as aforesaid, an original of each such promissory note,
appropriately completed, to evidence the respective Loans made by such Lender
hereunder, within ten (10) Business Days after the Borrower receives a written
request therefor.

                                       26
<PAGE>

     (f)  Recording of Loans and Payments on Notes.  Each holder of a Note shall
          ----------------------------------------
record on its books and records or on a schedule to its appropriate Note (and
prior to any transfer of its Notes shall endorse thereon or on schedules forming
a part thereof appropriate notations to evidence) the amount of each Loan
outstanding from it to the Borrower, all payments of principal and interest and
the principal balance from time to time outstanding thereon, the type of such
Loan and, if a Eurocurrency Loan or a Competitive Fixed Rate Loan, the Interest
Period and interest rate applicable thereto. Such record, whether shown on the
books and records of a holder of a Note or on a schedule to its Note, shall be
prima facie evidence as to all such matters; provided, however, that the failure
of any holder to record any of the foregoing or any error in any such record
shall not limit or otherwise affect the obligation of the Borrower to repay all
Loans outstanding to it hereunder together with accrued interest thereon. At the
request of any holder of a Note and upon such holder tendering to the Borrower
the Note to be replaced, the Borrower shall furnish a new Note to such holder to
replace any outstanding Note and at such time the first notation appearing on
the schedule on the reverse side of, or attached to, such new Note shall set
forth the aggregate unpaid principal amount of all Loans, if any, then
outstanding thereon.

     Section 2.10.  Optional Prepayments. The Borrower shall have the privilege
                    --------------------
of prepaying Base Rate Loans without premium or penalty at any time in whole or
at any time and from time to time in part (but, if in part, then in an amount
which is equal to or greater than $1,000,000); provided, however, that the
Borrower shall have given notice of such prepayment to the Administrative Agent
no later than 12:00 p.m. on the date of such prepayment. The Borrower shall have
the privilege of prepaying Adjusted LIBOR Loans (a) without premium or penalty
in whole or in part (but, if in part, then in an amount which is equal to or
greater than $5,000,000 and in an integral multiple of $100,000) only on the
last Business Day of an Interest Period for such Loan, and (b) at any other time
so long as the breakage fees and funding losses provided for in Section 2.12 are
paid; provided, however, that the Borrower shall have given notice of such
prepayment to the Administrative Agent no later than 12:00 p.m. at least three
(3) Business Days before the last Business Day of such Interest Period or the
proposed prepayment date. The Borrower shall not have the right to prepay any
Competitive Loan without the prior written consent of the Lender thereof unless
the applicable Competitive Bid Request shall have so provided, the Borrower has
given timely notice to the Lender of any such prepayment as may be required
pursuant to the terms of the Competitive Bid Request, and the Borrower shall
have paid to such Lender in connection with any such prepayment all amounts
required to be paid in connection with such prepayment pursuant to the terms of
the applicable Competitive Bid Request. Any such prepayments shall be made by
the payment of the principal amount to be prepaid and accrued and unpaid
interest thereon to the date of such prepayment. Unless otherwise specified in
writing by the Borrower, optional prepayments shall be applied first, to the
Revolving Loans, second, to the Reimbursement Obligations with respect to
                 ------
Letters of Credit, and third, to the Competitive Loans.
                       -----

     Section 2.11.  Mandatory Prepayments of Loans.  In the event and on each
                    ------------------------------
occasion that the aggregate principal amount of outstanding Revolving Loans,
Competitive Loans, and L/C Obligations exceeds the Revolving Credit Commitment
Amount then in effect, then the Borrower shall promptly prepay Revolving Loans
and/or Competitive Loans in an aggregate

                                       27
<PAGE>

amount sufficient to eliminate such excess. Immediately upon determining the
need to make any such prepayment, the Borrower shall notify the Administrative
Agent of such required prepayment and of the identity of the particular
Revolving Loans and/or Competitive Loans being prepaid. If the Administrative
Agent shall notify the Borrower that the Administrative Agent has determined
that any prepayment is required under this Section 2.11, the Borrower shall make
such prepayment no later than the second Business Day following such notice. Any
mandatory prepayment of Revolving Loans and/or Competitive Loans pursuant hereto
shall not be limited by the notice provision for prepayments set forth in
Section 2.10. Each such prepayment shall be accompanied by a payment of all
accrued and unpaid interest on the Loans prepaid and any applicable breakage
fees and funding losses pursuant to Section 2.12.

     Section 2.12.  Breakage Fees. If any Lender incurs any loss, cost or
                    -------------
expense (excluding loss of anticipated profits and other indirect or
consequential damages) by reason of the liquidation or re-employment of deposits
or other funds acquired by such Lender to fund or maintain any Eurocurrency Loan
or Competitive Fixed Rate Loan as a result of any of the following events other
than any such occurrence as a result of a change of circumstance described in
Sections 8.1 or 8.2:

     (a)  any payment, prepayment or conversion of any such Loan on a date other
than the last day of its Interest Period (whether by acceleration, mandatory
prepayment or otherwise);

     (b)  any failure to make a principal payment of any such Loan on the due
date therefor; or

     (c)  any failure by the Borrower to borrow, continue or prepay, or convert
to, any such Loan on the date specified in a notice given pursuant to Section
2.3 or 2.4 (other than by reason of a default of such Lender),

then the Borrower shall pay to such Lender such amount as will reimburse such
Lender for such loss, cost or expense.  If any Lender makes such a claim for
compensation, it shall provide to the Borrower a certificate executed by an
officer of such Lender setting forth the amount of such loss, cost or expense in
reasonable detail (including an explanation of the basis for and the computation
of such loss, cost or expense) no later than ninety (90) days after the event
giving rise to the claim for compensation, and the amounts shown on such
certificate shall be prima facie evidence of such Lender's entitlement thereto.
Within ten (10) days of receipt of such certificate, the Borrower shall pay
directly to such Lender such amount as will compensate such Lender for such
loss, cost or expense as provided herein, unless such Lender has failed to
timely give notice to the Borrower of such claim for compensation as provided
herein, in which event the Borrower shall not have any obligation to pay such
claim.

     Section 2.13.  Letters of Credit.
                    -----------------

     (a)  Letters of Credit. Subject to the terms and conditions hereof, the
Issuing Bank agrees to issue, from time to time prior to the Commitment
Termination Date, at the request of the Borrower and on behalf of the Lenders
and in reliance on their obligations under this Section 2.13, one or more
letters of credit (each a "Letter of Credit") for the Borrower's account in a

                                       28
<PAGE>

face amount in each case of at least $500,000 and in an aggregate undrawn face
amount for all Letters of Credit at any time outstanding not to exceed the
Revolving Credit Commitment Amount; provided, that the Issuing Bank shall not be
obligated to issue a Letter of Credit pursuant to Section 2.13(d) if, after the
issuance thereof, (i) the outstanding Revolving Loans, Competitive Loans, and
L/C Obligations would thereby exceed the Revolving Credit Commitment Amount then
in effect, or (ii) the issuance of such Letter of Credit would violate any legal
or regulatory restriction then applicable to the Issuing Bank or any Lender as
notified by the Issuing Bank or such Lender to the Administrative Agent before
the date of issuance of such Letter of Credit. Letters of Credit and any
increases and extensions thereof hereunder shall be issued in face amounts of
Dollars.

     (b)  Issuance Procedure. To request that the Issuing Bank issue a Letter of
          ------------------
Credit, the Borrower shall deliver to the Issuing Bank and the Administrative
Agent (with a duplicate copy to an operations employee of the Issuing Bank as
designated by the Issuing Bank from time to time) a duly executed Issuance
Request substantially in the form of Exhibit 2.13A (each an "Issuance Request"),
                                     -------------
together with a duly executed application for the relevant Letter of Credit
substantially in the form of Exhibit 2.13B (each an "Application"), or such
                             -------------
other computerized issuance or application procedure, instituted from time to
time by the Issuing Bank and the Administrative Agent and agreed to by the
Borrower, completed to the reasonable satisfaction of the Issuing Bank and the
Administrative Agent, and such other information as the Issuing Bank and the
Administrative Agent may reasonably request. In the event of any irreconcilable
difference or inconsistency between this Agreement and an Application, the
provisions of this Agreement shall govern. Upon receipt of a properly completed
and executed Application and any other reasonably requested information at least
three (3) Business Days prior to any requested issuance date, the Issuing Bank
will process such Application in accordance with its customary procedures and
issue the requested Letter of Credit on the requested issuance date. The
Borrower may cancel any requested issuance of a Letter of Credit prior to the
issuance thereof. The Issuing Bank will notify the Administrative Agent and each
Lender of the amount, currency, and expiration date of each Letter of Credit it
issues promptly upon issuance thereof. Each Letter of Credit shall have an
expiration date no later than four (4) Business Days before the Maturity Date.
If the Issuing Bank issues any Letters of Credit with expiration dates that
automatically extend unless the Issuing Bank gives notice that the expiration
date will not so extend, the Issuing Bank will give such notice of non-renewal
before the time necessary to prevent such automatic extension if (and will not
give such notice of non-renewal before such time unless) before such required
notice date (i) the expiration date of such Letter of Credit if so extended
would be later than four (4) Business Days before the Maturity Date, (ii) the
Commitment Termination Date shall have occurred, (iii) a Default or an Event of
Default exists and the Required Lenders have given the Issuing Bank instructions
not to so permit the expiration date of such Letter of Credit to be extended, or
(iv) the Issuing Bank is so directed by the Borrower. The Issuing Bank agrees to
issue amendments to any Letter of Credit increasing its amount, or extending its
expiration date, at the request of the Borrower, subject to the conditions
precedent for all Borrowings of Section 4.2 and the other terms and conditions
of this Section 2.13.

     (c)  The Borrower's Reimbursement Obligations.
          ----------------------------------------

                                       29
<PAGE>

          (i)    The Borrower hereby irrevocably and unconditionally agrees to
     reimburse the Issuing Bank for each payment or disbursement made by the
     Issuing Bank to settle its obligations under any draft drawn or other
     payment made under a Letter of Credit (a "Reimbursement Obligation") within
     two (2) Business Days from when such draft is paid or other payment is made
     with either funds not borrowed hereunder or with a Borrowing of Revolving
     Loans subject to Section 2.3 and the other terms and conditions contained
     in this Agreement. The Reimbursement Obligation shall bear interest (which
     the Borrower hereby promises to pay) from and after the date such draft is
     paid or other payment is made until (but excluding the date) the
     Reimbursement Obligation is paid at the lesser of (x) the Highest Lawful
     Rate, or (y) the Base Rate, in each case so long as the Reimbursement
     Obligation shall not be past due, and thereafter at the default rate per
     annum as set forth in Section 2.8(d), whether or not the Maturity Date
     shall have occurred. If any such payment or disbursement is reimbursed to
     the Issuing Bank on the date such payment or disbursement is made by the
     Issuing Bank, interest shall be paid on the reimbursable amount for one (1)
     day. The Issuing Bank shall give the Borrower notice of any drawing on a
     Letter of Credit within one (1) Business Day after such drawing is paid.

          (ii)   The Borrower agrees for the benefit of the Issuing Bank and
     each Lender that, notwithstanding any provision of any Application, the
     obligations of the Borrower under this Section 2.13(c) and each applicable
     Application shall be absolute, unconditional and irrevocable and shall be
     performed strictly in accordance with the terms of this Agreement and each
     applicable Application under all circumstances whatsoever (other than the
     defense of payment in accordance with this Agreement), including, without
     limitation, the following circumstances (subject in all cases to the
     defense of payment in accordance with this Agreement):

               (1)  any lack of validity or enforceability of any of the L/C
     Documents;

               (2)  any amendment or waiver of or any consent to depart from all
     or any of the provisions of any of the L/C Documents;

               (3)  the existence of any claim, set-off, defense or other right
     the Borrower may have at any time against a beneficiary of a Letter of
     Credit (or any person for whom a beneficiary may be acting), the Issuing
     Bank, any Lender or any other Person, whether in connection with this
     Agreement, another L/C Document or any unrelated transaction;

               (4)  any statement or any other document presented under a Letter
     of Credit proving to be forged, fraudulent, invalid or insufficient in any
     respect or any statement therein being untrue or inaccurate in any respect;

               (5)  payment by the Issuing Bank under a Letter of Credit against
     presentation to the Issuing Bank of a draft or certificate that does not
     comply with the terms of the Letter of Credit; or

                                       30
<PAGE>

               (6)  any other act or omission to act or delay of any kind by the
     Issuing Bank, any Lender or any other Person or any other event or
     circumstance whatsoever that might, but for the provisions of this Section
     2.13(c), constitute a legal or equitable discharge of the Borrower's
     obligations hereunder, under an Issuance Request or under an Application;

provided, however, the foregoing shall not be construed to excuse the Issuing
Bank from liability to the Borrower to the extent of any direct damages (but
excluding consequential damages, which are hereby waived to the extent not
prohibited by applicable law) suffered by the Borrower that are caused by the
Issuing Bank's gross negligence or willful misconduct.

     (d)  The Participating Interests. Each Lender severally and not jointly
          ---------------------------
agrees to purchase from the Issuing Bank, and the Issuing Bank hereby agrees to
sell to each Lender, an undivided percentage participating interest, to the
extent of its Percentage, in each Letter of Credit issued by, and Reimbursement
Obligation owed to, the Issuing Bank in connection with a Letter of Credit. Upon
any failure by the Borrower to pay any Reimbursement Obligation in connection
with a Letter of Credit at the time required in Sections 2.13(c) and 2.3(c), or
if the Issuing Bank is required at any time to return to the Borrower or to a
trustee, receiver, liquidator, custodian or other Person any portion of any
payment by the Borrower of any Reimbursement Obligation in connection with a
Letter of Credit, the Issuing Bank shall promptly give notice of same to each
Lender, and the Issuing Bank shall have the right to require each Lender to fund
its participation in such Reimbursement Obligation. Each Lender (except the
Issuing Bank to the extent it is also a Lender) shall pay to the Issuing Bank an
amount equal to such Lender's Percentage of such unpaid or recaptured
Reimbursement Obligation not later than the Business Day it receives notice from
the Issuing Bank to such effect, if such notice is received before 2:00 p.m., or
not later than the following Business Day if such notice is received after such
time. If a Lender fails to pay timely such amount to the Issuing Bank, it shall
also pay to the Issuing Bank interest on such amount accrued from the date
payment of such amount was made by the Issuing Bank to the date of such payment
by the Lender at a rate per annum equal to the Base Rate in effect for each such
day and only after such payment shall such Lender be entitled to receive its
Percentage of each payment received on the relevant Reimbursement Obligation and
of interest paid thereon. The several obligations of the Lenders to the Issuing
Bank under this Section 2.13(d) shall be absolute, irrevocable and unconditional
under any and all circumstances whatsoever and shall not be subject to any set-
off, counterclaim or defense to payment any Lender may have or have had against
the Borrower, the Issuing Bank, and any other Lender or any other Person
whatsoever including, but not limited to, any defense based on the failure of
the demand for payment under the Letter of Credit to conform to the terms of
such Letter of Credit or the legality, validity, regularity or enforceability of
such Letter of Credit and INCLUDING, BUT NOT LIMITED TO, THOSE RESULTING FROM
THE ISSUING BANK'S OWN SIMPLE OR CONTRIBUTORY NEGLIGENCE. Without limiting the
generality of the foregoing, such obligations shall not be affected by any
Default or Event of Default or by any subsequent reduction or termination of any
Commitment of a Lender, and each payment by a Lender under this Section 2.13
shall be made without any offset, abatement, withholding or reduction
whatsoever.

                                       31
<PAGE>

     Section 2.14.  Commitment Terminations. The Borrower shall have the right
                    -----------------------
at any time and from time to time, upon three (3) Business Days' prior and
irrevocable written notice to the Administrative Agent, to terminate or reduce
the Commitments without premium or penalty, in whole or in part, any reduction
(i) to be in an amount not less than $5,000,000 as determined by the Borrower
and in integral multiples of $5,000,000, and (ii) to be allocated ratably among
the Lenders in proportion to their respective Commitments; provided, that the
Revolving Credit Commitment Amount may not be reduced to an amount less than the
sum of the aggregate principal amount of outstanding Revolving Loans,
Competitive Loans, and L/C Obligations, after giving effect to payments on such
proposed termination or reduction date; provided, however, that to the extent
                                        --------  -------
the Borrower provides to the Administrative Agent cash collateral in an amount
sufficient to cover such shortage or back to back letters of credit from a
bank(s) or financial institution(s) whose short-term unsecured debt rating is
rated A or above from either S&P or Moody's or such other bank(s) or financial
institution(s) satisfactory to the Required Lenders in an amount equal to the
undrawn face amount of any applicable outstanding Letters of Credit with an
expiration date of at least five (5) days after the expiration date of any
applicable Letter of Credit and which provide that the Administrative Agent may
make a drawing thereunder in the event that it pays a drawing under such Letter
of Credit. The Administrative Agent shall give prompt notice to each Lender of
any such termination or reduction of the Commitments. Any termination of
Commitments pursuant to this Section 2.14 is permanent and may not be
reinstated.

     Section 2.15.  Extension of Commitments.
                    ------------------------

     (a)  The Borrower may, by notice to the Administrative Agent (which shall
promptly deliver a copy to each of the Lenders) given not less than 30 days and
not more than 60 days prior to the Commitment Termination Date then in effect,
request that the Lenders extend the Commitment Termination Date for an
additional period of not more than 364 days as specified in such notice. Any
such notice shall specify any fees that the Borrower agrees to pay as
consideration for such extension, any changes to the Applicable Facility Fee
Rate, Applicable Margin, and/or Applicable Utilization Fee Rate that will apply
during the term of such extension and the amendments, if any, to the covenants
contained herein or other provisions hereof proposed by the Borrower to be
applicable during the term of such extension. Each Lender shall, by notice to
the Borrower and the Administrative Agent given not earlier than the 30th day
and not later than the 15th day prior to the Commitment Termination Date then in
effect, advise the Administrative Agent and the Borrower whether or not it
agrees to such extension on the terms set forth in such notice. Any Lender that
has not so advised the Administrative Agent by such day shall be deemed to have
declined to agree to such extension.

     (b)  If (and only if) Lenders (including any Lenders becoming parties to
this Agreement as contemplated by the last sentence of paragraph (c) below)
holding more than 50% of the Commitments in effect prior to such extension shall
have agreed to extend the Commitment Termination Date (each such Lender being
called an "Extending Lender", and Lenders not having so agreed being called
"Non-Extending Lenders"), then, if the Borrower shall so elect in a notice
delivered to the Administrative Agent not earlier than the 15th day and not
later than the 10th day prior to the Commitment Termination Date then in effect,
the Commitment Termination Date shall be extended as to such Extending Lenders
for the additional

                                       32
<PAGE>

period and on the terms specified in the Borrower's notice provided for under
paragraph (a) and, if such terms vary from those contained in this Agreement,
the Borrower and the Extending Lenders shall enter into an amendment to this
Agreement to be effective as of the Commitment Termination Date in effect prior
to such extension pursuant to which such terms shall be given effect as to the
Borrower and the Extending Lenders and, to the extent consistent with Section
10.11, the other Lenders.

     (c)  If less than all the Lenders consent to any extension request pursuant
to paragraph (a), the Administrative Agent shall promptly so notify the
Extending Lenders, and each Extending Lender may, in its sole discretion, give
written notice to the Administrative Agent not later than 10 days prior to the
Commitment Termination Date in effect prior to giving effect to the extension
provided for in paragraph (b) (the "Existing Commitment Termination Date") of
the amount of the Non-Extending Lenders' Commitments, together with the
corresponding amount of such Non-Extending Lenders' outstanding Loans and
obligations and interests in respect of outstanding L/C Obligations (such
corresponding amount of Loans and obligations and interests in respect of
outstanding L/C Obligations being collectively referred to as the "Related
Credit Extensions"), it is willing to accept and assume. If such Extending
Lenders are willing to accept and assume Commitments and Related Credit
Extensions in an aggregate amount that exceeds the amount of the Commitments and
Related Credit Extensions of the Non-Extending Lenders, the Non-Extending
Lenders' Commitments and Related Credit Extensions shall be allocated among
Extending Lenders willing to accept and assume such Commitments and Related
Credit Extensions in such amounts as shall be agreed between the Borrower and
the Administrative Agent, and such Commitments and Related Credit Extensions
shall be assigned, accepted and assumed in accordance with the provisions of
Section 10.10. If after giving effect to the assignments described above the
full amount of the Commitments and Related Credit Extensions of the Non-
Extending Lenders would not be assigned, accepted and assumed as set forth above
prior to the Commitment Termination Date, the Borrower may (i) arrange for one
or more Extending Lenders or other assignees eligible to become Lenders
hereunder (each, an "Extension Assuming Lender"), to accept and assume the
unassigned amounts of the Commitments and Related Credit Extensions of the Non-
Extending Lenders in accordance with Section 10.10 and become parties hereto
with all the rights and obligations of Lenders hereunder, or (ii) subject to the
requirements of paragraph (b) above, reduce the aggregate amount of the
Commitments to an amount equal to the aggregate amount of Commitments held by
all Extending Lenders and Extension Assuming Lenders all as of the Existing
Commitment Termination Date.

     On the Existing Commitment Termination Date:

          (i)   the Extending Lenders and Extension Assuming Lenders shall pay
     to the Non-Extending Lenders the principal amount of any outstanding Loans
     made by such Non-Extending Lenders, and any outstanding amounts paid by
     such Non-Extending Lenders pursuant to Section 2.13(d), all as assigned,
     accepted and assumed in accordance with this paragraph (c), together with
     any accrued interest thereon as of the Existing Commitment Termination
     Date;

                                       33
<PAGE>

          (ii)   any accrued fees and other amounts payable hereunder to any
     Non-Extending Lender as of the Existing Commitment Termination Date shall
     be paid to such Non-Extending Lender by the Borrower or by such Extending
     Lenders and Extension Assuming Lenders, as may be agreed by such parties;
     and

          (iii)  with respect to any such Extension Assuming Lender, the
     applicable processing and recordation fee required under Section 10.10
     shall be paid.

The Commitment of any Extension Assuming Lender shall in no event be less than
$5,000,000 (subject to the fourth sentence of Section 10.10(b)) unless the
Commitment of a Non-Extending Lender as of the Existing Termination Date is less
than $5,000,000, in which case such Extension Assuming Lender may accept and
assume all of such lesser amount.  Any such Non-Extending Lender's rights under
Sections 2.12, 3.3, 8.3, 10.3, and 10.13, and its obligations under Section 9.6,
shall survive such substitution as to matters occurring on or prior to the
Existing Commitment Termination Date (and if such Non-Extending Lender shall
continue to have Loans outstanding after the Existing Commitment Termination
Date, shall continue in effect following the Existing Commitment Termination
Date).

     At least three Business Days prior to the proposed effective date of any
extension of the Commitment Termination Date pursuant to this Section, (A) each
Extension Assuming Lender, if any, shall deliver to the Borrower and the
Administrative Agent an Assignment Agreement or other agreement in a form
approved by the Administrative Agent and the Borrower evidencing such Extension
Assuming Lender's Commitment and Related Credit Extensions, duly executed by
such Extension Assuming Lender, such Non-Extending Lender a Commitment and
Related Credit Extensions of which is being assigned to and accepted and assumed
by such Extension Assuming Lender, the Borrower and the Administrative Agent,
and (B) each Extending Lender, if any, shall have delivered written confirmation
satisfactory to the Borrower and the Administrative Agent as to any increase in
the amount of its Commitment and Related Credit Extensions resulting from its
acceptance and assumption of all or a portion of the Commitments and Related
Credit Extensions of the Non-Extending Lenders. As of and following the
effective date of any extension made pursuant to this Section, each Extension
Assuming Lender shall be a Lender for all purposes of this Agreement.

     (d)  The decision to agree or withhold agreement to any requested extension
of the Commitment Termination Date hereunder shall be at the sole discretion of
each Lender. If the Commitment Termination Date shall have been extended as
provided in paragraph (b) above, the Commitment of any Non-Extending Lender
shall terminate on the Existing Commitment Termination Date, and the term
"Maturity Date", as used herein, shall mean, as to the Related Credit Extensions
of such Non-Extending Lender (to the extent not assumed pursuant to paragraph
(c)), the Maturity Date in effect prior to giving effect to such extension.

     (e)  Notwithstanding the foregoing, no extension of the Commitment
Termination Date shall become effective under this Section unless (i) the
conditions set forth in paragraphs (b) and (c) of Section 4.2 shall be satisfied
on the Existing Commitment Termination Date and the Administrative Agent shall
have received a certificate to that effect dated such date and executed by the
President or a Vice President of the Borrower, and (ii) the Administrative Agent

                                       34
<PAGE>

shall have received (with sufficient copies for each of the Lenders (other than
any Non-Extending Lenders)) documents consistent with those delivered under
clause (i) of Section 4.1(a) as to the corporate power and authority of the
Borrower to borrow hereunder after giving effect to such extension.

ARTICLE 3.  FEES AND PAYMENTS.

     Section 3.1.   Fees.
                    ----

     (a)  Facility Fees. The Borrower agrees to pay to the Administrative Agent
          -------------
for the account of each Lender a facility fee, which shall accrue at the
Applicable Facility Fee Rate on the daily amount of the Commitment of such
Lender (whether used or unused) during the period from and including the Initial
Availability Date to but excluding the date on which such Commitment terminates;
provided that, if such Lender continues to have any Revolving Credit Exposure
after its Commitment terminates, then such facility fee shall continue to accrue
on the daily amount of such Lender's Revolving Credit Exposure from and
including the date on which its Commitment terminates to but excluding the date
on which such Lender ceases to have any Revolving Credit Exposure. Accrued
facility fees shall be payable in arrears on the last Business Day of March,
June, September and December of each year, commencing on March 30, 2001, and on
the date(s) on which the Commitments shall have terminated and the Lenders shall
have no further Revolving Credit Exposures. All facility fees shall be computed
on the basis of a year of 360 days and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day).

     (b)  Utilization Fees. For any day on which the outstanding principal
          ----------------
amount of the Loans and L/C Obligations shall be greater than an amount equal to
33% of the total Commitments (and for any day after the termination of all the
Commitments on which any Loans or L/C Obligations shall be outstanding if the
outstanding principal amount thereof on the date the Commitments terminated
shall have been greater than 33% of the total Commitments in effect on such
date), the Borrower shall pay to the Administrative Agent for the account of
each Lender a utilization fee equal to the Applicable Utilization Fee Rate
multiplied by the aggregate amount of such Lender's outstanding Loans and
applicable Percentage of L/C Obligations on such day. Accrued and unpaid
utilization fees, if any, shall be payable in arrears on the last Business Day
of each March, June, September and December and on the date(s) on which the
Commitments shall have terminated and there are no Loans or L/C Obligations
outstanding. All utilization fees shall be computed on the basis of a year of
360 days and shall be payable for the actual number of days elapsed (including
the first day but excluding the last day).

     (c)  Letter of Credit Fees. Commencing upon the date of issuance, increase
          ---------------------
or extension of any Letter of Credit and thereafter on the last Business Day of
each March, June, September and December, the Borrower shall pay to the
Administrative Agent quarterly in advance, for the period until the next Letter
of Credit fee payment date, for the ratable account of the Lenders, a non-
refundable fee equal to the Applicable Margin multiplied by the outstanding face
amount or increase of such Letter of Credit during such upcoming period
calculated on the basis of a 360 day year and actual days elapsed and based on
the then scheduled expiration date

                                       35
<PAGE>

of the Letter of Credit. In addition, the Borrower shall pay to the Issuing Bank
solely for the Issuing Bank's account, in connection with each Letter of Credit,
issuance and administrative fees and expenses for Letters of Credit as agreed
from time to time between the Issuing Bank and the Borrower.

     (d)  Administrative Agent Fees. The Borrower shall pay to the
          -------------------------
Administrative Agent and Lead Arranger the fees from time to time agreed to by
the Borrower, the Administrative Agent, and Lead Arranger.

     (e)  Payment of Fees. All fees payable hereunder shall be paid on the dates
          ---------------
due, in immediately available funds, to the Administrative Agent for
distribution, in the case of facility fees, utilization fees, and Letter of
Credit fees (other than issuance and administrative fees payable to the Issuing
Bank), to the Lenders.

     Section 3.2.   Place and Application of Payments.
                    ---------------------------------

     (a)  All payments of principal of and interest on the Loans, Reimbursement
Obligations and all fees and other amounts payable by the Borrower under the
Credit Documents shall be made by the Borrower to the Administrative Agent, for
the benefit of the Lenders entitled to such payments, in immediately available
funds on the due date thereof no later than 2:00 p.m. at the office of the
Administrative Agent in Atlanta, Georgia, or such other location as the
Administrative Agent may designate in writing to the Borrower. Any payments
received by the Administrative Agent from the Borrower after the time specified
in the preceding sentence shall be deemed to have been received on the next
Business Day. The Administrative Agent will, on the same day each payment is
received or deemed to have been received in accordance with this Section 3.2,
cause to be distributed like funds to each Lender owed an Obligation for which
such payment was received, pro rata based on the respective amounts of such type
of Obligation then owing to each Lender.

     (b)  If any payment received by the Administrative Agent under any Credit
Document is insufficient to pay in full all amounts then due and payable to the
Administrative Agent and the Lenders under the Credit Documents, such payment
shall be distributed by the Administrative Agent and applied by the
Administrative Agent and the Lenders in the order set forth in Section 7.7. In
calculating the amount of Obligations owing each Lender other than for principal
and interest on Loans and Reimbursement Obligations and fees under Section 3.1,
the Administrative Agent shall only be required to include such other
Obligations that Lenders have certified to the Administrative Agent in writing
are due to such Lenders.

     Section 3.3.   Withholding Taxes.
                    -----------------

     (a)  Payments Free of Withholding.  Except as otherwise required by law and
          ----------------------------
subject to Section 3.3(b), each payment by the Borrower to any Lender, Issuing
Bank or Administrative Agent under this Agreement or any other Credit Document
shall be made without withholding for or on account of any present or future
taxes imposed by or within the jurisdiction in which the Borrower is
incorporated, any jurisdiction from which the Borrower makes any payment, or

                                       36
<PAGE>

(in each case) any political subdivision or taxing authority thereof or therein,
excluding, in the case of each Lender, Issuing Bank and the Administrative
Agent, the following taxes:

          (i)    taxes imposed on, based upon, or measured by such Lender's,
     Issuing Bank's or the Administrative Agent's net income or profits, and
     branch profits, franchise and similar taxes imposed on it;

          (ii)   taxes imposed on such Lender, Issuing Bank or the
     Administrative Agent as a result of a present or former connection between
     the taxing jurisdiction and such Lender, Issuing Bank or Administrative
     Agent, or any affiliate thereof, as the case may be, other than a
     connection resulting solely from the transactions contemplated by this
     Agreement;

          (iii)  taxes imposed as a result of the transfer by such Lender,
     Issuing Bank or Administrative Agent of its interest in this Agreement or
     any other Credit Document or a designation by such Lender, Issuing Bank or
     the Administrative Agent (other than pursuant to Section 8.3(c)) of a new
     Lending Office (other than taxes imposed as a result of any change in
     treaty, law or regulation after such transfer of such Lender's, Issuing
     Bank's or the Administrative Agent's interest in this Agreement or any
     other Credit Document or designation of a new Lending Office);

          (iv)   taxes imposed by the United States of America (or any political
     subdivision thereof or tax authority therein) upon a Lender, Issuing Bank
     or Administrative Agent organized under the laws of a jurisdiction outside
     of the United States, except to the extent that such tax is imposed as a
     result of any change in applicable law, regulation or treaty (other than
     any addition of or change in any "anti-treaty shopping," "limitation of
     benefits," or similar provision applicable to a treaty) after the date
     hereof, in the case of each Lender, Issuing Bank or Administrative Agent
     originally a party hereto or, in the case of any Purchasing Lender (as
     defined in Section 10.10) or other Issuing Bank or Administrative Agent,
     after the date on which it becomes a Lender, Issuing Bank, or
     Administrative Agent, as the case may be; or

          (v)    taxes which would not have been imposed but for (a) the failure
     of any Lender, the Issuing Bank, or the Administrative Agent, as the case
     may be, to provide (I) the applicable forms prescribed by the Internal
     Revenue Service, as required pursuant to Section 3.3(b), or (II) any other
     form, certification, documentation or proof which is reasonably requested
     by the Borrower, or (b) a determination by a taxing authority or a court of
     competent jurisdiction that a form, certification, documentation or other
     proof provided by such Lender, Issuing Bank or the Administrative Agent to
     establish an exemption from such tax, assessment or other governmental
     charge is false;

(all such present or future taxes, excluding only the taxes described in the
preceding clauses (i) through (v), being hereinafter referred to as "Indemnified
Taxes").  If any such withholding is so required, the Borrower shall make the
withholding, pay the amount withheld to the appropriate governmental authority
before penalties attach thereto or interest accrues thereon and forthwith pay
such additional amount as may be necessary to ensure that the net amount
actually received

                                       37
<PAGE>

by each Lender, Issuing Bank and the Administrative Agent is free and clear of
such Indemnified Taxes (including Indemnified Taxes on such additional amount)
and is equal to the amount that such Lender, Issuing Bank or the Administrative
Agent (as the case may be) would have received had withholding of any
Indemnified Tax not been made. If the Borrower pays any Indemnified Taxes, or
any penalties or interest in connection therewith, it shall deliver official tax
receipts evidencing the payment or certified copies thereof, or other evidence
of payment if such tax receipts have not yet been received by the Borrower (with
such tax receipts to be delivered within fifteen (15) days after being actually
received), to the Lender, Issuing Bank or the Administrative Agent on whose
account such withholding was made (with a copy to the Administrative Agent if
not the recipient of the original) within fifteen (15) days of such payment. If
the Administrative Agent, Issuing Bank or any Lender pays any Indemnified Taxes,
or any penalties or interest in connection therewith, the Borrower shall
reimburse the Administrative Agent, Issuing Bank or that Lender for the payment
on demand in the currency in which such payment was made. Such Lender, Issuing
Bank or the Administrative Agent shall make written demand on the Borrower for
reimbursement hereunder no later than ninety (90) days after the earlier of (i)
the date on which such Lender, Issuing Bank or the Administrative Agent makes
payment of the Indemnified Taxes, penalties and interest, and (ii) the date on
which the relevant taxing authority or other governmental authority makes
written demand upon such Lender, Issuing Bank or the Administrative Agent for
payment of the Indemnified Taxes, penalties and interest. Any such demand shall
describe in reasonable detail such Indemnified Taxes, penalties or interest,
including the amount thereof if then known to such Lender, Issuing Bank, or the
Administrative Agent, as the case may be. In the event that such Lender, Issuing
Bank or the Administrative Agent fails to give the Borrower timely notice as
provided herein, the Borrower shall not have any obligation to pay such claim
for reimbursement.

     (b)  U.S. Withholding Tax Exemptions. Upon the written request of the
          -------------------------------
Borrower or the Administrative Agent, each Lender or Issuing Bank that is not a
United States person (as such term is defined in Section 7701(a)(30) of the
Code) shall submit to the Borrower and the Administrative Agent, promptly after
such request, two duly completed and signed copies of either Form W-8 BEN or any
successor form (entitling such Lender or Issuing Bank to a complete exemption
from withholding under the Code on all amounts to be received by such Lender or
Issuing Bank, including fees, pursuant to the Credit Documents) or Form W-8 ECI
or any successor form (relating to all amounts to be received by such Lender or
Issuing Bank, including fees, pursuant to the Credit Documents) of the United
States Internal Revenue Service, and any other form of the United States
Internal Revenue Service reasonably necessary to accomplish exemption from
withholding obligations or to facilitate the Administrative Agent's performance
under this Agreement. Thereafter and from time to time, each such Lender or
Issuing Bank shall submit to the Borrower and the Administrative Agent such
additional duly completed and signed copies of such forms (or such successor
forms as shall be adopted from time to time by the relevant United States taxing
authorities) as may be required under then-current United States law or
regulations to avoid United States withholding taxes on payments in respect of
all amounts to be received by such Lender or Issuing Bank, including fees,
pursuant to the Credit Documents. Upon the request of the Borrower, each Lender
or Issuing Bank that is a United States person shall submit to the Borrower a
certificate to the effect that it is such a United States person.

                                       38
<PAGE>

     (c)  Inability of Lender to Submit Forms.  If any Lender or Issuing Bank
          -----------------------------------
determines in good faith, as a result of any change in applicable law,
regulation or treaty, or in any official application or interpretation thereof,
that (i) it is unable to submit to the Borrower or Administrative Agent any form
or certificate that such Lender or Issuing Bank is obligated to submit pursuant
to subsection (b) of this Section 3.3, (ii) it is required to withdraw or cancel
any such form or certificate previously submitted, or (iii) any such form or
certificate otherwise becomes ineffective or inaccurate, such Lender or Issuing
Bank shall promptly notify the Borrower and Administrative Agent of such fact,
and the Lender or Issuing Bank shall to that extent not be obligated to provide
any such form or certificate and will be entitled to withdraw or cancel any
affected form or certificate, as applicable.

     (d)  Refund of Taxes. If any Lender, Issuing Bank or the Administrative
          ---------------
Agent receives a refund of any Indemnified Tax or any tax referred to in Section
10.3 with respect to which the Borrower has paid any amount pursuant to this
Section 3.3 or Section 10.3, such Lender, Issuing Bank or the Administrative
Agent shall pay the amount of such refund (including any interest received with
respect thereto) to the Borrower within fifteen (15) days after receipt thereof.
A Lender, Issuing Bank, or the Administrative Agent shall provide, at the sole
cost and expense of the Borrower, such assistance as the Borrower may reasonably
request in order to obtain such a refund; provided, however, that neither the
Administrative Agent nor any Lender or Issuing Bank shall in any event be
required to disclose any information to the Borrower with respect to the overall
tax position of the Administrative Agent, Issuing Bank, or such Lender.

ARTICLE 4.  CONDITIONS PRECEDENT.

     Section 4.1.   Initial Borrowing. The obligation of each Lender to advance
                    -----------------
the initial Loans hereunder, and of the Issuing Bank to issue the initial Letter
of Credit hereunder, on or after the Initial Availability Date is subject to
satisfaction of the following conditions precedent:

     (a)  The Administrative Agent shall have received the following all in form
and substance reasonably satisfactory to the Administrative Agent and in
sufficient number of signed counterparts, where applicable, to provide one for
each Lender:

          (i)   Certificates of Officers. Certificates of the Secretary or an
                ------------------------
     Assistant Secretary of the Borrower containing specimen signatures of the
     persons authorized to execute Credit Documents on the Borrower's behalf or
     any other documents provided for herein or therein, together with (x)
     copies of resolutions of the Board of Directors or other appropriate body
     of the Borrower authorizing the execution and delivery of the Credit
     Documents, (y) copies of the Borrower's Memorandum and Articles of
     Association and other publicly filed organizational documents in its
     jurisdiction of organization and bylaws and other governing documents, and
     (z) a certificate of incorporation and good standing from the appropriate
     governing agency of the Borrower's jurisdiction of organization;

                                       39
<PAGE>

          (ii)   Regulatory Filings and Approvals. Copies of all necessary
                 --------------------------------
     governmental and third party approvals, registrations, and filings in
     respect of the transactions contemplated by this Agreement;

          (iii)  Insurance Certificate. An insurance certificate dated not more
                 ---------------------
     than ten (10) days prior to the Initial Availability Date from the Borrower
     describing in reasonable detail the insurance maintained by the Borrower
     and its Subsidiaries as required by this Agreement;

          (iv)   Opinions of Counsel. The opinions of (x) Baker Botts LLP,
                 -------------------
     counsel for the Borrower, in the form of Exhibit 4.1A, (y) William
                                              ------------
     Turcotte, Associate General Counsel of the Borrower, in the form of Exhibit
                                                                         -------
     4.1B, and (z) Walkers, Cayman Islands counsel for the Borrower, in the form
     ----
     of Exhibit 4.1C;
        ------------

          (v)    Closing Certificate. Certificate of the President or a Vice
                 -------------------
     President of the Borrower as to the satisfaction of all conditions set
     forth in this Section 4.1; and

          (vi)   Transocean/ABN Revolving Credit Facility. Evidence that all
                 ----------------------------------------
     commitments of the lenders under the Transocean/ABN Revolving Credit
     Facility are being terminated, and all amounts then outstanding under the
     Transocean/ABN Revolving Credit Facility are being paid in full,
     simultaneously on the Initial Availability Date.

     (b)  Each of the representations and warranties of the Borrower and its
Subsidiaries set forth herein and in the other Credit Documents shall be true
and correct in all material respects as of the time of such Borrowing, except to
the extent that any such representation or warranty relates solely to an earlier
date, in which case it shall have been true and correct in all material respects
as of such earlier date;

     (c)  No Default or Event of Default shall have occurred and be continuing;

     (d)  There shall be no pending or, to the knowledge of the Borrower,
threatened actions, suits or proceedings at law or in equity or by or before any
governmental authority against or affecting the Borrower or any of its
Subsidiaries or any of their respective businesses, properties or rights which,
if adversely determined, could reasonably be expected to result in a Material
Adverse Effect; and

     (e)  Payment of all fees and all expenses incurred through the Effective
Date then due and owing to the Administrative Agent, the Lenders, and the Lead
Arranger pursuant to this Agreement and as otherwise agreed in writing by the
Borrower.

     Section 4.2.   All Borrowings. The obligation of each Lender to make any
                    --------------
advance of any Loan, and of the Issuing Bank to issue any Letter of Credit
hereunder (including any increase in the amount of, or extension of the
expiration date of, any Letter of Credit) is subject to satisfaction of the
following conditions precedent (but subject to Sections 2.3(c) and 2.13(c)):

                                       40
<PAGE>

     (a)  Notices.  In the case of any Loan, the Administrative Agent shall have
          -------
received the Borrowing Request required by the first sentence of Section 2.3(a),
or the Competitive Bid Request and notice of acceptance thereof pursuant to
Section 2.4, as the case may be, and in the case of the issuance, extension or
increase of a Letter of Credit, the Issuing Bank and the Administrative Agent
shall have received a duly completed Issuance Request and Application for such
Letter of Credit, as the case may be, meeting the requirements of Section
2.13(b);

     (b)  Warranties True and Correct. In the case of any advance, Borrowing, or
          ---------------------------
issuance or increase of any Letter of Credit that increases the aggregate amount
of Loans and L/C Obligations outstanding after giving effect to such advance,
Borrowing or issuance or increase, each of the representations and warranties of
the Borrower and its Subsidiaries set forth herein and in the other Credit
Documents shall be true and correct in all material respects as of the time of
such advance, Borrowing, or issuance or increase of any Letter of Credit, except
as a result of the transactions expressly permitted hereunder or thereunder and
except to the extent that any such representation or warranty relates solely to
an earlier date, in which case it shall have been true and correct in all
material respects as of such earlier date;

     (c)  No Default.  No Default or Event of Default shall have occurred and be
          ----------
continuing or would occur as a result of such Borrowing; and

     (d)  Regulations U and X. The Borrowing to be made by the Borrower shall
          -------------------
not result in the Borrower or any Lender or Issuing Bank being in non-compliance
with or in violation of Regulation U or X of the Board of Governors of the
Federal Reserve System.

Each acceptance by the Borrower of an advance of any Loan or of the issuance of,
increase in the amount of, or extension of the expiration date of, a Letter of
Credit shall be deemed to be a representation and warranty by the Borrower on
the date of such acceptance, that all conditions precedent to such Borrowing set
forth in this Section 4.2 and in Section 4.1 with respect to the initial
Borrowings hereunder have (except to the extent waived in accordance with the
terms hereof) been satisfied or fulfilled unless the Borrower gives to the
Administrative Agent and the Lenders written notice to the contrary, in which
case none of the Lenders shall be required to fund such Loans and the Issuing
Bank shall not be required to issue, increase the amount of or extend the
expiration date of such Letter of Credit, unless the Required Lenders shall have
previously waived in writing such non-compliance.

ARTICLE 5.  REPRESENTATIONS AND WARRANTIES.

     The Borrower represents and warrants to each Lender, Issuing Bank and
Administrative Agent as follows:

     Section 5.1.   Corporate Organization. The Borrower and each of its
                    ----------------------
material Subsidiaries: (i) is duly organized and existing in good standing under
the laws of the jurisdiction of its organization; (ii) has all necessary company
power and authority to own the property and assets it uses in its business and
otherwise to carry on its present business; and (iii) is duly licensed or
qualified and in good standing in each jurisdiction in which the nature of the
business transacted by it or the nature of the property owned or leased by it
makes such licensing or

                                       41
<PAGE>

qualification necessary, except where the failure to be so licensed or qualified
or to be in good standing, as the case may be, would not have a Material Adverse
Effect.

     Section 5.2.   Power and Authority; Validity.  The Borrower has the
                    -----------------------------
organizational power and authority to execute, deliver and carry out the terms
and provisions of the Credit Documents and has taken all necessary company
action to authorize the execution, delivery and performance of such Credit
Documents.  The Borrower has duly executed and delivered each Credit Document
and each such Credit Document constitutes the legal, valid and binding
obligation of the Borrower enforceable against it in accordance with its terms,
subject as to enforcement only to bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors' rights
generally and equitable principles.

     Section 5.3.   No Violation. Neither the execution, delivery or performance
                    ------------
by the Borrower of the Credit Documents nor compliance by it with the terms and
provisions thereof, nor the consummation by it of the transactions contemplated
herein or therein, will (i) contravene in any material respect any applicable
provision of any law, statute, rule or regulation, or any applicable order,
writ, injunction or decree of any court or governmental instrumentality, (ii)
conflict with or result in any breach of any term, covenant, condition or other
provision of, or constitute a default under, or result in the creation or
imposition of (or the obligation to create or impose) any Lien other than any
Permitted Lien upon any of the property or assets of the Borrower or any of its
Subsidiaries under, the terms of any material contractual obligation to which
the Borrower or any of its Subsidiaries is a party or by which they or any of
their properties or assets are bound or to which they may be subject, or (iii)
violate or conflict with any provision of the Memorandum and Articles of
Association, charter, articles or certificate of incorporation, partnership or
limited liability company agreement, by-laws, or other applicable governance
documents of the Borrower or any of its Subsidiaries.

     Section 5.4.   Litigation.  There are no actions, suits, proceedings or
                    ----------
counterclaims (including, without limitation, derivative or injunctive actions)
pending or, to the knowledge of the Borrower, threatened against the Borrower or
any of its Subsidiaries that are reasonably likely to have a Material Adverse
Effect.

     Section 5.5.   Use of Proceeds; Margin Regulations.
                    -----------------------------------

     (a)  Use of Proceeds. The proceeds of the Loans and the Letters of Credit
          ---------------
shall only be used for general corporate purposes of the Borrower and its
Subsidiaries.

     (b)  Margin Stock. Neither the Borrower nor any of its Subsidiaries is
          ------------
engaged in the business of extending credit for the purpose of purchasing or
carrying margin stock. No proceeds of the Loans or the Letters of Credit will be
used for a purpose which violates Regulations T, U or X of the Board of
Governors of the Federal Reserve System. After application of the proceeds of
the Loans, the issuance of the Letters of Credit, and any acquisitions permitted
hereunder, less than 25% of the assets of each of the Borrower and its
Subsidiaries consists of "margin stock" (as defined in Regulation U of the Board
of Governors of the Federal Reserve System).

                                       42
<PAGE>

     Section 5.6.   Investment Company Act.  Neither the Borrower nor any of its
                    ----------------------
Subsidiaries is an "investment company" or a company "controlled" by an
"investment company," within the meaning of the Investment Company Act of 1940,
as amended.

     Section 5.7.   Public Utility Holding Company Act. Neither the Borrower nor
                    ----------------------------------
any of its Subsidiaries is a "holding company," or a "subsidiary company" of a
"holding company," or an "affiliate" of a "holding company" or of a "subsidiary
company" of a "holding company," within the meaning of the Public Utility
Holding Company Act of 1935, as amended.

     Section 5.8.   True and Complete Disclosure. All factual information (taken
                    ----------------------------
as a whole) furnished by the Borrower or any of its Subsidiaries in writing to
the Administrative Agent or any Lender in connection with any Credit Document or
the Confidential Information Memorandum or any transaction contemplated therein
did not, as of the date such information was furnished (or, if such information
expressly related to a specific date, as of such specific date), contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein (taken as a whole), in light of the circumstances
under which such information was furnished, not misleading, except for such
statements, if any, as have been updated, corrected, supplemented, superseded or
modified pursuant to a written correction or supplement furnished to the Lenders
prior to the date of this Agreement.

     Section 5.9.   Financial Statements.  The financial statements heretofore
                    --------------------
delivered to the Lenders for the Borrower's fiscal year ending December 31,
1999, and for the Borrower's fiscal quarter and year-to-date period ending
September 30, 2000, have been prepared in accordance with GAAP applied on a
basis consistent, except as otherwise noted therein, with the Borrower's
financial statements for the previous fiscal year.  Such annual and quarterly
financial statements fairly present on a consolidated basis the financial
position of the Borrower as of the dates thereof, and the results of operations
for the periods indicated, subject in the case of interim financial statements,
to normal year-end audit adjustments and omission of certain footnotes (as
permitted by the SEC).  As of the Effective Date, the Borrower and its
Subsidiaries, considered as a whole, had no material contingent liabilities or
material Indebtedness required under GAAP to be disclosed in a consolidated
balance sheet of the Borrower that were not disclosed in the financial
statements referred to in this Section 5.9 or in the notes thereto or disclosed
in writing to the Administrative Agent (with a request to the Administrative
Agent to distribute such disclosure to the Lenders).

     Section 5.10.  No Material Adverse Change.  There has occurred no event or
                    --------------------------
effect that has had or could reasonably be expected to have a Material Adverse
Effect.

     Section 5.11.  Labor Controversies. There are no labor controversies
                    -------------------
pending or, to the best knowledge of the Borrower, threatened against the
Borrower or any of its Subsidiaries that could reasonably be expected to have a
Material Adverse Effect.

     Section 5.12.  Taxes. The Borrower and its Subsidiaries have filed all
                    -----
United States federal income tax returns, and all other material tax returns
required to be filed, whether in the United States or in any foreign
jurisdiction, and have paid all governmental taxes, rates, assessments, fees,
charges and levies (collectively, "Taxes") shown to be due and payable on

                                       43
<PAGE>

such returns or on any assessments made against Borrower and its Subsidiaries or
any of their properties (other than any such assessments, fees, charges or
levies that are not more than ninety (90) days past due, or which can thereafter
be paid without penalty, or which are being contested in good faith by
appropriate proceedings and for which reserves have been provided in conformity
with GAAP, or which the failure to pay could not reasonably be expected to have
a Material Adverse Effect).

     Section 5.13.  ERISA.  With respect to each Plan, the Borrower and its
                    -----
Subsidiaries have fulfilled their obligations under the minimum funding
standards of, and are in compliance in all material respects with, ERISA and
with the Code to the extent applicable to it, and have not incurred any
liability under Title IV of ERISA to the PBGC other than a liability to the PBGC
for premiums under Section 4007 of ERISA, except as described in Schedule 5.13
and in each case with such exceptions as could not reasonably be expected to
have a Material Adverse Effect.  As of the Effective Date, neither the Borrower
nor any of its Subsidiaries has any material contingent liability with respect
to any post-retirement benefits under a welfare plan subject to ERISA, other
than liability for continuation coverage described in Part 6 of Title I of ERISA
and as disclosed in the financial statements of the Borrower for the fiscal
quarter ending September 30, 2000, described in Section 5.9, or any other
liability that could not reasonably be expected to have a Material Adverse
Effect.

     Section 5.14.  Consents. On the Initial Availability Date, all consents and
                    --------
approvals of, and filings and registrations with, and all other actions of, all
governmental agencies, authorities or instrumentalities required to have been
obtained or made by the Borrower in order to obtain the Loans and Letters of
Credit hereunder have been or will have been obtained or made and are or will be
in full force and effect.

     Section 5.15.  Insurance.  The Borrower and its material Subsidiaries
                    ---------
currently maintain in effect, with responsible insurance companies, insurance
against any loss or damage to all insurable property and assets owned by it,
which insurance is of a character and in or in excess of such amounts as are
customarily maintained by companies similarly situated and operating like
property or assets (subject to self-insured retentions and deductibles), and
insurance with respect to employers' and public and product liability risks
(subject to self-insured retentions and deductibles).

     Section 5.16.  Intellectual Property. The Borrower and its Subsidiaries own
                    ---------------------
or hold valid licenses to use all the patents, trademarks, permits, service
marks, and trade names that are necessary to the operation of the business of
the Borrower and its Subsidiaries as presently conducted, except where the
failure to own, or hold valid licenses to use, such patents, trademarks,
permits, service marks, and trade names could not reasonably be expected to have
a Material Adverse Effect.

     Section 5.17.  Ownership of Property. The Borrower and its Subsidiaries
                    ---------------------
have good title to or a valid leasehold interest in all of their real property
and good title to, or a valid leasehold interest in, all of their other
property, subject to no Liens except Permitted Liens, except where the failure
to have such title or leasehold interest in such property could not reasonably
be expected to have a Material Adverse Effect.

                                       44
<PAGE>

     Section 5.18.  Compliance with Statutes, Etc.    The Borrower and its
                    ------------------------------
Subsidiaries are in compliance with all applicable statutes, regulations and
orders of, and all applicable restrictions imposed by, all governmental bodies,
domestic and foreign, in respect of the conduct of their businesses and the
ownership of their properties, except for such instances of non-compliance as
could not reasonably be expected to, individually or in the aggregate, have a
Material Adverse Effect.

     Section 5.19.  Environmental Matters.
                    ---------------------

     (a)  Compliance with Environmental Laws. Except as described in Schedule
          ----------------------------------                         --------
5.19, the Borrower and its Subsidiaries are in compliance with all applicable
----
Environmental Laws and the requirements of any permits issued under such
Environmental Laws, except for such instances of non-compliance as could not
reasonably be expected to have a Material Adverse Effect. To the best knowledge
of the Borrower, there are no pending, past or threatened Environmental Claims
against the Borrower or any of its Subsidiaries on any property owned or
operated by the Borrower or any of its Subsidiaries except as described in
Schedule 5.19 or except as could not reasonably be expected to have a Material
-------------
Adverse Effect. To the best knowledge of the Borrower, there are no conditions
or occurrences on any property owned or operated by the Borrower or any of its
Subsidiaries or on any property adjoining or in the vicinity of any such
property that could reasonably be expected to form the basis of an Environmental
Claim against the Borrower or any of its Subsidiaries or any such property that
individually or in the aggregate could reasonably be expected to have a Material
Adverse Effect.

     (b)  Hazardous Materials.  To the best of the Borrower's knowledge, (i)
          -------------------
Hazardous Materials have not at any time been generated, used, treated or stored
on, or transported to or from, any property owned or operated by the Borrower or
any of its Subsidiaries in a manner that has violated or could reasonably be
expected to violate any Environmental Law, and (ii) Hazardous Materials have not
at any time been released on or from any property owned or operated by the
Borrower or any of its Subsidiaries, in the case of both (i) and (ii), with such
exceptions as could not reasonably be expected to have a Material Adverse
Effect.

     Section 5.20.  Existing Indebtedness. Schedule 5.20 contains a complete and
                    ---------------------  -------------
accurate list of all Indebtedness outstanding as of the Effective Date, with
respect to the Borrower and its Subsidiaries, in each case in a principal amount
of $20,000,000 or more (other than the Obligations hereunder and Indebtedness
permitted by Section 6.11(b) through (k)) and permitted by Section 6.11(a), in
each case showing the aggregate principal amount thereof, the name of the
respective borrower and any other entity which directly or indirectly guaranteed
such Indebtedness, and the scheduled payments of such Indebtedness.

     Section 5.21.  Existing Liens. Schedule 5.21 contains a complete and
                    --------------  -------------
accurate list of all Liens outstanding as of the Effective Date, with respect to
the Borrower and its Subsidiaries where the Indebtedness or other obligations
secured by such Lien is in a principal amount of $20,000,000 or more (other than
the Liens permitted by Section 6.10(b) through (r)), and permitted by Section
6.10(a), in each case showing the name of the Person whose assets are subject to
such Lien, the aggregate principal amount of the Indebtedness secured thereby,
and a

                                       45
<PAGE>

description of the Agreements or other instruments creating, granting, or
otherwise giving rise to such Lien.

ARTICLE 6.  COVENANTS.

     The Borrower covenants and agrees that, so long as any Loan, Note,
Commitment, or L/C Obligation is outstanding hereunder, or any other Obligation
is due and payable hereunder:

     Section 6.1.   Corporate Existence.  Each of the Borrower and its material
                    -------------------
Subsidiaries will preserve and maintain its organizational existence, except (i)
for the dissolution of any material Subsidiaries whose assets are transferred to
the Borrower or any of its Subsidiaries, (ii) where the failure to preserve,
renew or keep in full force and effect the existence of any Subsidiary could not
reasonably be expected to have a Material Adverse Effect, or (iii) as otherwise
expressly permitted in this Agreement.

     Section 6.2.   Maintenance. Each of the Borrower and its material
                    -----------
Subsidiaries will maintain, preserve and keep its properties and equipment
necessary to the proper conduct of its business in reasonably good repair,
working order and condition (normal wear and tear excepted) and will from time
to time make all reasonably necessary repairs, renewals, replacements, additions
and betterments thereto so that at all times such properties and equipment are
reasonably preserved and maintained, in each case with such exceptions as could
not, individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect; provided, however, that nothing in this Section 6.2 shall
prevent the Borrower or any material Subsidiary from discontinuing the operation
or maintenance of any such properties or equipment if such discontinuance is, in
the judgment of the Borrower or any material Subsidiary, as applicable,
desirable in the conduct of their businesses.

     Section 6.3.   Taxes. Each of the Borrower and its Subsidiaries will duly
                    -----
pay and discharge all Taxes upon or against it or its properties before
penalties accrue thereon (or, if later, within ninety (90) days of becoming past
due), unless and to the extent that (i) the same is being contested in good
faith and by appropriate proceedings and reserves have been established in
conformity with GAAP, or (ii) the failure to effect such payment or discharge
could not reasonably be expected to have a Material Adverse Effect.

     Section 6.4.   ERISA. Each of the Borrower and its Subsidiaries will timely
                    -----
pay and discharge all obligations and liabilities arising under ERISA or
otherwise with respect to each Plan of a character which if unpaid or
unperformed might result in the imposition of a material Lien against any
properties or assets of the Borrower or any material Subsidiary and will
promptly notify the Administrative Agent upon an officer of the Borrower
becoming aware thereof, of (i) the occurrence of any reportable event (as
defined in ERISA) relating to a Plan (other than a multi-employer plan, as
defined in ERISA), so long as the event thereunder could reasonably be expected
to have a Material Adverse Effect, other than any such event with respect to
which the PBGC has waived notice by regulation; (ii) receipt of any notice from
PBGC of its intention to seek termination of any Plan or appointment of a
trustee therefor; (iii) Borrower's or any of its Subsidiaries' intention to
terminate or withdraw from any Plan if such termination or withdrawal would
result in liability under Title IV of ERISA, unless such termination or

                                       46
<PAGE>

withdrawal could not reasonably be expected to have a Material Adverse Effect;
and (iv) the receipt by the Borrower or its Subsidiaries of notice of the
occurrence of any event that could reasonably be expected to result in the
incurrence of any liability (other than for benefits), fine or penalty to the
Borrower and/or to the Borrower's Subsidiaries, or any plan amendment that could
reasonably be expected to increase the contingent liability of the Borrower and
its Subsidiaries, taken as a whole, in connection with any post-retirement
benefit under a welfare plan (subject to ERISA), unless such event or amendment
could not reasonably be expected to have a Material Adverse Effect. The Borrower
will also promptly notify the Administrative Agent of (i) any material
contributions to any Foreign Plan that have not been made by the required due
date for such contribution if such default could reasonably be expected to have
a Material Adverse Effect; (ii) any Foreign Plan that is not funded to the
extent required by the law of the jurisdiction whose law governs such Foreign
Plan based on the actuarial assumptions reasonably used at any time if such
underfunding (together with any penalties likely to result) could reasonably be
expected to have a Material Adverse Effect, and (iii) any material change
anticipated to any Foreign Plan that could reasonably be expected to have a
Material Adverse Effect.

     Section 6.5.   Insurance. Each of the Borrower and its material
                    ---------
Subsidiaries will maintain or cause to be maintained, with responsible insurance
companies, insurance against any loss or damage to all insurable property and
assets owned by it, such insurance to be of a character and in or in excess of
such amounts as are customarily maintained by companies similarly situated and
operating like property or assets (subject to self-insured retentions and
deductibles) and will (subject to self-insured retentions and deductibles)
maintain or cause to be maintained insurance with respect to employers' and
public and product liability risks.

     Section 6.6.   Financial Reports and Other Information.
                    ---------------------------------------

     (a)  Periodic Financial Statements and Other Documents.  The Borrower, its
          -------------------------------------------------
Subsidiaries and any SPVs will maintain a system of accounting in such manner as
will enable preparation of financial statements in accordance with GAAP and will
furnish to the Lenders and their respective authorized representatives such
information about the business and financial condition of the Borrower, its
Subsidiaries and any SPVs as any Lender may reasonably request; and, without any
request, will furnish to the Administrative Agent:

          (i)   within sixty (60) days after the end of each of the first three
     (3) fiscal quarters of each fiscal year of the Borrower, the consolidated
     balance sheet of the Borrower and its Subsidiaries as at the end of such
     fiscal quarter and the related consolidated statements of income and
     retained earnings and of cash flows for such fiscal quarter and for the
     portion of the fiscal year ended with the last day of such fiscal quarter,
     all of which shall be in reasonable detail or in the form filed with the
     SEC, and certified by the chief financial officer of the Borrower that they
     fairly present the financial condition of the Borrower and its Subsidiaries
     as of the dates indicated and the results of their operations and changes
     in their cash flows for the periods indicated and that they have been
     prepared in accordance with GAAP, in each case, subject to normal year-end
     audit adjustments and the omission of any footnotes as permitted by the SEC
     (delivery to the Administrative Agent of a copy of the Borrower's Form 10-Q
     filed with the SEC

                                       47
<PAGE>

     (without exhibits) in any event will satisfy the requirements of this
     subsection subject to Section 6.6(b));

          (ii)   within one hundred twenty (120) days after the end of each
     fiscal year of the Borrower, the consolidated balance sheet of the Borrower
     and its Subsidiaries as at the end of such fiscal year and the related
     consolidated statements of income and retained earnings and of cash flows
     for such fiscal year and setting forth consolidated comparative figures as
     of the end of and for the preceding fiscal year, audited by an independent
     nationally-recognized accounting firm and in the form filed with the SEC
     (delivery to the Administrative Agent of a copy of the Borrower's Form 10-K
     filed with the SEC (without exhibits) in any event will satisfy the
     requirements of this subsection subject to Section 6.6(b));

          (iii)  commencing with fiscal year 2001, to the extent actually
     prepared and approved by the Borrower's board of directors, a projection of
     Borrower's consolidated balance sheet and consolidated income, retained
     earnings and cash flows for its current fiscal year showing such projected
     budget for each fiscal quarter of the Borrower ending during such year; and

          (iv)   within ten (10) days after the sending or filing thereof,
     copies of all financial statements, projections, documents and other
     communications that the Borrower sends to its stockholders generally or
     files with the SEC or any similar governmental authority (and is publicly
     available).

The Administrative Agent will forward promptly to the Lenders the information
provided by the Borrower pursuant to (i) through (iv) above.

     (b)  Compliance Certificates. Each financial statement furnished to the
Lenders pursuant to subsections (i) and (ii) of Section 6.6(a) shall be (i)
accompanied by additional information setting forth calculations excluding the
effects of any SPVs and containing such calculations for any SPVs as reasonably
requested by the Administrative Agent, and (ii) accompanied by (x) a written
certificate signed by the Borrower's chief financial officer (or other financial
officer of the Borrower), in his or her capacity as such, to the effect that no
Default or Event of Default then exists or, if any such Default or Event of
Default exists as of the date of such certificate, setting forth a description
of such Default or Event of Default and specifying the action, if any, taken by
the Borrower to remedy the same, and (y) a Compliance Certificate in the form of
Exhibit 6.6 showing the Borrower's compliance with certain of the covenants set
-----------
forth herein.

     (c)  Management Letters.  Promptly upon receipt thereof, the Borrower will
          ------------------
provide the Administrative Agent with a copy of each report or "management
letter" submitted to the Borrower by its independent accountants or auditors in
connection with any annual, interim or special audit made by them of the books
and records of the Borrower.

     (d)  Notice of Events Relating to Environmental Laws and Claims. Promptly
          ----------------------------------------------------------
after any officer of the Borrower obtains knowledge of any of the following, the
Borrower will

                                       48
<PAGE>

provide the Administrative Agent with written notice in reasonable detail of any
of the following that, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect:

          (i)    any pending or threatened Environmental Claim against the
     Borrower, any of its Subsidiaries or any SPV or any property owned or
     operated by the Borrower, any of its Subsidiaries or any SPV;

          (ii)   any condition or occurrence on any property owned or operated
     by the Borrower, any of its Subsidiaries or any SPV that results in
     noncompliance by the Borrower, any of its Subsidiaries or any SPV with any
     Environmental Law; and

          (iii)  the taking of any material remedial action in response to the
     actual or alleged presence of any Hazardous Material on any property owned
     or operated by the Borrower, any of its Subsidiaries or any SPV other than
     in the ordinary course of business.

     (e)  Notices of Default, Litigation, Etc. The Borrower will promptly, and
          -----------------------------------
in any event within five (5) Days, after an officer of the Borrower has
knowledge thereof, give written notice to the Administrative Agent of (who will
in turn provide notice to the Lenders of): (i) the occurrence of any Default or
Event of Default; (ii) any litigation or governmental proceeding of the type
described in Section 5.4; (iii) any circumstance that has had or could
reasonably be expected to have a Material Adverse Effect; (iv) the occurrence of
any event which has resulted in a breach of, or is likely to result in a breach
of, Sections 6.16 or 6.17; and (v) any notice received by it, any Subsidiary or
any SPV from the holder(s) of Indebtedness of the Borrower, any Subsidiary or
any SPV in an amount which, in the aggregate, exceeds $30,000,000, where such
notice states or claims the existence or occurrence of any default or event of
default with respect to such Indebtedness under the terms of any indenture, loan
or credit agreement, debenture, note, or other document evidencing or governing
such Indebtedness.

     Section 6.7.   Lender Inspection Rights.  Upon reasonable notice from the
                    ------------------------
Administrative Agent or any Lender, the Borrower will permit the Administrative
Agent or any Lender (and such Persons as the Administrative Agent or such Lender
may reasonably designate) during normal business hours at such entity's sole
expense unless a Default or Event of Default shall have occurred and be
continuing, in which event at the Borrower's expense, to visit and inspect any
of the properties of the Borrower or any of its Subsidiaries, to examine all of
their books and records, to make copies and extracts therefrom, and to discuss
their respective affairs, finances and accounts with their respective officers
and independent public accountants (and by this provision the Borrower
authorizes such accountants to discuss with the Administrative Agent and any
Lender (and such Persons as the Administrative Agent or such Lender may
reasonably designate) the affairs, finances and accounts of the Borrower and its
Subsidiaries), all as often, and to such extent, as may be reasonably requested.
The chief financial officer of the Borrower and/or his or her designee shall be
afforded the opportunity to be present at any meeting of the Administrative
Agent or the Lenders and such accountants.  The Administrative Agent agrees to
use reasonable efforts to minimize, to the extent practicable, the number of

                                       49
<PAGE>

separate requests from the Lenders to exercise their rights under this Section
6.7 and/or Section 6.6 and to coordinate the exercise by the Lenders of such
rights.

     Section 6.8.   Conduct of Business. The Borrower and its Subsidiaries will
                    -------------------
at all times remain primarily engaged in (i) the contract drilling business,
(ii) the provision of services to the energy industry, (iii) other existing
businesses described in the Borrower's current SEC reports and in the
Transocean/R&B Falcon Joint Proxy Statement, or (iv) any related businesses
(each a "Permitted Business").

     Section 6.9.   Restrictions on Fundamental Changes. The Borrower shall not
                    -----------------------------------
merge or consolidate with any other Person, or cause or permit any dissolution
of the Borrower or liquidation of its assets, or sell, transfer or otherwise
dispose of all or substantially all of the Borrower's assets, except that:

     (a)  The Borrower or any of its Subsidiaries may merge into, or consolidate
with, any other Person if upon the consummation of any such merger or
consolidation the Borrower or such Subsidiary is the surviving corporation to
any such merger or consolidation (or the other Person is, or will thereby
become, a Subsidiary of the Borrower); and

     (b)  The Borrower may sell or transfer all or substantially all of its
assets (including stock in its Subsidiaries) to any Person if such Person is a
Subsidiary of the Borrower (or a Person who will contemporaneously therewith
become a Subsidiary of the Borrower);

provided in the case of any transaction described in the preceding clauses (a)
and (b), no Default or Event of Default shall exist immediately prior to, or
after giving effect to, such transaction.

     Section 6.10.  Liens.  The Borrower and its Subsidiaries shall not create,
                    -----
incur, assume or suffer to exist any Lien of any kind on any property or asset
of any kind of the Borrower or any Subsidiary, except the following
(collectively, the "Permitted Liens"):

     (a)  Liens existing on the date hereof (each such Lien, to the extent it
secures Indebtedness or other obligations in an aggregate amount of $20,000,000
or more, being described on Schedule 5.21 attached hereto);
                            -------------

     (b)  Liens arising in the ordinary course of business by operation of law,
deposits, pledges or other Liens in connection with workers' compensation,
unemployment insurance, old age benefits, social security obligations, taxes,
assessments, public or statutory obligations or other similar charges, good
faith deposits, pledges or other Liens in connection with (or to obtain letters
of credit in connection with) bids, performance, return-of-money or payment
bonds, contracts or leases to which the Borrower or its Subsidiaries are parties
or other deposits required to be made in the ordinary course of business;
provided that in each case the obligation secured is not for Indebtedness for
borrowed money and is not overdue or, if overdue, is being contested in good
faith by appropriate proceedings and reserves in conformity with GAAP have been
provided therefor;

                                       50
<PAGE>

     (c)  mechanics', workmen's, materialmen's, landlords', carriers' or other
similar Liens arising in the ordinary course of business (or deposits to obtain
the release of such Liens) related to obligations not overdue for more than
thirty (30) days if such Liens arise with respect to domestic assets and for
more than ninety (90) days if such Liens arise with respect to foreign assets,
or, if so overdue, that are being contested in good faith by appropriate
proceedings and reserves in conformity with GAAP have been provided therefor, or
if such Liens otherwise could not reasonably be expected to have a Material
Adverse Effect;

     (d)  Liens for Taxes not more than ninety (90) days past due or which can
thereafter be paid without penalty or which are being contested in good faith by
appropriate proceedings and reserves in conformity with GAAP have been provided
therefor, or if such Liens otherwise could not reasonably be expected to have a
Material Adverse Effect;

     (e)  Liens imposed by ERISA (or comparable foreign laws) which are being
contested in good faith by appropriate proceedings and reserves in conformity
with GAAP have been provided therefor, or if such Liens otherwise could not
reasonably be expected to have a Material Adverse Effect;

     (f)  Liens arising out of judgments or awards against the Borrower or any
of its Subsidiaries, or in connection with surety or appeal bonds or the like in
connection with bonding such judgments or awards, the time for appeal from which
or petition for rehearing of which shall not have expired or for which the
Borrower or such Subsidiary shall be prosecuting on appeal or proceeding for
review, and for which it shall have obtained (within thirty (30) days with
respect to a judgment or award rendered in the United States or within sixty
(60) days with respect to a judgment or award rendered in a foreign jurisdiction
after entry of such judgment or award or expiration of any previous such stay,
as applicable) a stay of execution or the like pending such appeal or proceeding
for review; provided, that the aggregate amount of uninsured or underinsured
liabilities (net of customary deductibles, and including interest, costs, fees
and penalties, if any) of the Borrower and its Subsidiaries secured by such
Liens shall not exceed $50,000,000 at any one time outstanding;

     (g)  Liens on fixed or capital assets and related inventory and intangible
assets acquired, constructed, improved, altered or repaired by the Borrower or
any Subsidiary; provided that (i) such Liens secure Indebtedness otherwise
permitted by this Agreement, (ii) such Liens and the Indebtedness secured
thereby are incurred prior to or within 365 days after such acquisition or the
later of the completion of such construction, improvement, alteration or repair
or the date of commercial operation of the assets constructed, improved, altered
or repaired, (iii) the Indebtedness secured thereby does not exceed the cost of
acquiring, constructing, improving, altering or repairing such fixed or capital
assets, as the case may be, and (iv) such Lien shall not apply to any other
property or assets of the Borrower or any Subsidiary;

     (h)  Liens securing Interest Rate Protection Agreements or foreign exchange
hedging obligations incurred in the ordinary course of business and not for
speculative purposes;

     (i)  Liens on property existing at the time such property is acquired by
the Borrower or any Subsidiary of the Borrower and not created in contemplation
of such acquisition (or on

                                       51
<PAGE>

repairs, renewals, replacements, additions, accessions and betterments thereto),
and Liens on the assets of any Person at the time such Person becomes a
Subsidiary of the Borrower and not created in contemplation of such Person
becoming a Subsidiary of the Borrower (or on repairs, renewals, replacements,
additions, accessions and betterments thereto;

     (j)  any extension, renewal or replacement (or successive extensions,
renewals or replacements) in whole or in part of any Lien referred to in the
foregoing subsections (a) through (i), provided, however, that the principal
amount of Indebtedness secured thereby does not exceed the principal amount
secured at the time of such extension, renewal or replacement (other than
amounts incurred to pay costs of such extension, renewal or replacement), and
that such extension, renewal or replacement is limited to the property already
subject to the Lien so extended, renewed or replaced (together with accessions
and improvements thereto and replacements thereof);

     (k)  rights reserved to or vested in any municipality or governmental,
statutory or public authority by the terms of any right, power, franchise,
grant, license or permit, or by any provision of law, to terminate such right,
power, franchise, grant, license or permit or to purchase, condemn, expropriate
or recapture or to designate a purchaser of any of the property of a Person;

     (l)  rights reserved to or vested in any municipality or governmental,
statutory or public authority to control, regulate or use any property of a
Person;

     (m)  rights of a common owner of any interest in property held by a Person
and such common owner as tenants in common or through other common ownership;

     (n)  encumbrances (other than to secure the payment of Indebtedness),
easements, restrictions, servitudes, permits, conditions, covenants, exceptions
or reservations in any property or rights-of-way of a Person for the purpose of
roads, pipelines, transmission lines, transportation lines, distribution lines,
removal of gas, oil, coal, metals, steam, minerals, timber or other natural
resources, and other like purposes, or for the joint or common use of real
property, rights-of-way, facilities or equipment, or defects, irregularity and
deficiencies in title of any property or rights-of-way;

     (o)  Liens created by or resulting from zoning, planning and environmental
laws and ordinances and municipal regulations;

     (p)  Liens created by or resulting from financing statements filed by
lessors of property (but only with respect to the property so leased);

     (q)  Liens on property securing Non-recourse Debt;

     (r)  Liens on the stock or assets of SPVs; and

                                       52
<PAGE>

     (s)  Liens (not otherwise permitted by this Section 6.10) on property
securing Indebtedness (or other obligations) not exceeding $175,000,000 in the
aggregate at any time outstanding.

     Section 6.11.  Indebtedness. The Borrower and its Subsidiaries shall not
                    ------------
incur, assume or suffer to exist any Indebtedness, except:

     (a)  existing Indebtedness outstanding on the Effective Date (such
Indebtedness, to the extent the principal amount thereof is $20,000,000 or more,
being described on Schedule 5.20 attached hereto), and any subsequent
                   -------------
extensions, renewals or refinancings thereof so long as such Indebtedness is not
increased in amount (other than amounts incurred to pay costs of such extension,
renewal or refinancing), the scheduled maturity date thereof (if prior to the
Maturity Date) is not accelerated, the interest rate per annum applicable
thereto is not increased, any scheduled amortization of principal thereunder
prior to the Maturity Date is not shortened and the payments thereunder are not
increased;

     (b)  Indebtedness under the Credit Documents;

     (c)  intercompany loans and advances to the Borrower or its Subsidiaries,
and intercompany loans and advances from any of such Subsidiaries or SPVs to the
Borrower or any other Subsidiaries of the Borrower;

     (d)  Indebtedness under any Interest Rate Protection Agreements and under
foreign exchange futures agreements, arrangements or options designed to protect
against fluctuations in currency exchange rates;

     (e)  Indebtedness of the Borrower that may be incurred, assumed or suffered
to exist without violating any section of this Agreement, including, without
limitation, Sections 6.16 and 6.17 hereof;

     (f)  Indebtedness of any Subsidiary of the Borrower (i) under unsecured
lines of credit for overdrafts or for working capital purposes in foreign
countries with financial institutions, and (ii) arising from the honoring by a
bank or other Person of a check, draft or similar instrument inadvertently
drawing against insufficient funds, all such Indebtedness not to exceed
$100,000,000 in the aggregate at any time outstanding, provided that amounts
under overdraft lines of credit or outstanding as a result of drawings against
insufficient funds shall be outstanding for one (1) Business Day before being
included in such aggregate amount;

     (g)  Indebtedness of a Person existing at the time such Person becomes a
Subsidiary of the Borrower or is merged with or into the Borrower or any
Subsidiary of the Borrower and not incurred in contemplation of such
transaction;

     (h)  Indebtedness of the Borrower or any Subsidiary of the Borrower (i)
under Performance Guaranties and Performance Letters of Credit, and (ii) with
respect to letters of credit issued in the ordinary course of business;

                                       53
<PAGE>

     (i)  Indebtedness of any Subsidiaries of the Borrower in an aggregate
principal amount for all Subsidiaries not to exceed an amount equal to ten
percent (10%) of Consolidated Net Assets (the "Subsidiary Debt Basket Amount")
in the aggregate at any time outstanding;

     (j)  other Indebtedness of any Subsidiary of the Borrower so long as such
Subsidiary has in force a Subsidiary Guaranty in substantially the form of
Exhibit 6.11, provided that such Subsidiary Guaranty shall contain a provision
------------
that such Subsidiary Guaranty and all obligations thereunder of the Guarantor
party thereto shall be terminated upon delivery to the Administrative Agent by
the Borrower of a certificate stating that (x) the aggregate principal amount of
Indebtedness of all Subsidiaries outstanding pursuant to the preceding clause
(i) and this clause (j) is equal to or less than the Subsidiary Debt Basket
Amount, and (y) no Default or Event of Default has occurred and is continuing;
and

     (k)  extensions, renewals or replacements of Indebtedness permitted by this
Section 6.11 that do not increase the amount of such Indebtedness (other than
amounts incurred to pay costs of such extension, renewal or refinancing).

     Section 6.12.  Use of Property and Facilities; Environmental Laws. The
                    --------------------------------------------------
Borrower and its Subsidiaries shall comply in all material respects with all
Environmental Laws applicable to or affecting the properties or business
operations of the Borrower or any Subsidiary of the Borrower, where the failure
to comply could reasonably be expected to have a Material Adverse Effect.

     Section 6.13.  Transactions with Affiliates. Except as otherwise
                    ----------------------------
specifically permitted herein, the Borrower and its Subsidiaries shall not
(except pursuant to contracts outstanding as of (i) with respect to the
Borrower, the Effective Date or (ii) with respect to any Subsidiary of the
Borrower, the Effective Date or, if later, the date such Subsidiary first became
a Subsidiary of the Borrower) enter into or engage in any material transaction
or arrangement or series of related transactions or arrangements which in the
aggregate would be material with any Controlling Affiliate, including without
limitation, the purchase from, sale to or exchange of property with, any merger
or consolidation with or into, or the rendering of any service by or for, any
Controlling Affiliate, except pursuant to the requirements of the Borrower's or
such Subsidiary's business and unless such transaction or arrangement or series
of related transactions or arrangements, taken as a whole, are no less favorable
to the Borrower or such Subsidiary (other than a wholly owned Subsidiary) than
would be obtained in an arms' length transaction with a Person not a Controlling
Affiliate.

     Section 6.14.  Sale and Leaseback Transactions. The Borrower will not, and
                    -------------------------------
will not permit any of its Subsidiaries to, enter into, assume, or suffer to
exist any Sale-Leaseback Transaction, except any such transaction that may be
entered into, assumed or suffered to exist without violating any other provision
of this Agreement, including without limitation, Sections 6.16 and 6.17.

     Section 6.15.  Compliance with Laws.  Without limiting any of the other
                    --------------------
covenants of the Borrower in this Article 6, the Borrower and its Subsidiaries
shall conduct their business, and otherwise be, in compliance with all
applicable laws, regulations, ordinances and orders of any

                                       54
<PAGE>

governmental or judicial authorities; provided, however, that this Section 6.15
shall not require the Borrower or any Subsidiary of the Borrower to comply with
any such law, regulation, ordinance or order if (x) it shall be contesting such
law, regulation, ordinance or order in good faith by appropriate proceedings and
reserves in conformity with GAAP have been provided therefor, or (y) the failure
to comply therewith could not reasonably be expected to have a Material Adverse
Effect.

     Section 6.16.  Interest Coverage Ratio.  The Borrower will not permit the
                    -----------------------
Interest Coverage Ratio as of the end of any fiscal quarter of the Borrower to
be less than 3:00 to 1:00.

     Section 6.17.  Indebtedness to Total Capitalization Ratio. The Borrower
                    ------------------------------------------
will maintain, as of the end of each fiscal quarter of the Borrower, a ratio
(expressed as a percentage) of Consolidated Indebtedness to Total Capitalization
of no greater than 40%.

ARTICLE 7.  EVENTS OF DEFAULT AND REMEDIES.

     Section 7.1.   Events of Default.  Any one or more of the following shall
                    -----------------
constitute an Event of Default:

     (a)  default by the Borrower in the payment of any principal amount of any
Loan or Reimbursement Obligation, any interest thereon or any fees payable
hereunder, within two (2) Business Days following the date when due;

     (b)  default by the Borrower in the observance or performance of any
covenant set forth in Sections 6.9, 6.10, 6.16, or 6.17;

     (c)  default by the Borrower in the observance or performance of any
provision hereof or of any other Credit Document not mentioned in clauses (a) or
(b) above, which is not remedied within thirty (30) days after notice thereof to
the Borrower by the Administrative Agent;

     (d)  any representation or warranty made or deemed made herein or in any
other Credit Document by the Borrower or any Subsidiary proves untrue in any
material respect as of the date of the making, or deemed making, thereof;

     (e)  (x) Indedtedness in the aggregate principal amount of $50,000,000 of
the Borrower and its Subsidiaries ("Material Indebtedness") shall (i) not be
paid at maturity (beyond any applicable grace periods), or (ii) be declared to
be due and payable or required to be prepaid, redeemed or repurchased prior to
its stated maturity, or (y) any default in respect of Material Indedtedness
shall occur which permits the holders thereof, or any trustees or agents on
their behalf, to accelerate the maturity of such Indedtedness or requires such
Indedtedness to be prepaid, redeemed, or repurchased prior to its stated
maturity;

     (f)  the Borrower or any Significant Subsidiary (i) has entered
involuntarily against it an order for relief under the United States Bankruptcy
Code or a comparable action is taken

                                       55
<PAGE>

under any bankruptcy or insolvency law of another country or political
subdivision of such country, (ii) generally does not pay, or admits its
inability generally to pay, its debts as they become due, (iii) makes a general
assignment for the benefit of creditors, (iv) applies for, seeks, consents to,
or acquiesces in, the appointment of a receiver, custodian, trustee, liquidator
or similar official for it or any substantial part of its property under the
Bankruptcy Code or under the bankruptcy or insolvency laws of another country or
a political subdivision of such country, (v) institutes any proceeding seeking
to have entered against it an order for relief under the United States
Bankruptcy Code or any comparable law, to adjudicate it insolvent, or seeking
dissolution, winding up, liquidation, reorganization, arrangement, adjustment or
composition of it or its debts under any law relating to bankruptcy, insolvency
or reorganization or relief of debtors or fails to file an answer or other
pleading denying the material allegations of or consents to or acquiesces in any
such proceeding filed against it, (vi) makes any board of directors resolution
in direct furtherance of any matter described in clauses (i)-(v) above, or (vii)
fails to contest in good faith any appointment or proceeding described in this
Section 7.1(f);

     (g)  a custodian, receiver, trustee, liquidator or similar official is
appointed for the Borrower or any Significant Subsidiary or any substantial part
of its property under the Bankruptcy Code or under the bankruptcy or insolvency
laws of another country or a political subdivision of such country, or a
proceeding described in Section 7.1(f)(v) is instituted against the Borrower or
any Significant Subsidiary, and such appointment continues undischarged or such
proceeding continues undismissed and unstayed for a period of sixty (60) days
(or one hundred twenty (120) days in the case of any such event occurring
outside the United States of America);

     (h)  the Borrower or any Subsidiaries of the Borrower fail within thirty
(30) days with respect to any judgments or orders that are rendered in the
United States or sixty (60) days with respect to any judgments or orders that
are rendered in foreign jurisdictions (or such earlier date as any execution on
such judgments or orders shall take place) to vacate, pay, bond or otherwise
discharge any judgments or orders for the payment of money the uninsured portion
of which is in excess of $50,000,000 in the aggregate and which are not stayed
on appeal or otherwise being appropriately contested in good faith in a manner
that stays execution;

     (i)  (x) the Borrower or any Subsidiary of the Borrower fails to pay when
due an amount that it is liable to pay to the PBGC or to a Plan under Title IV
of ERISA; or a notice of intent to terminate a Plan having Unfunded Vested
Liabilities of the Borrower or any of its Subsidiaries in excess of $30,000,000
(a "Material Plan") is filed under Title IV of ERISA; or the PBGC institutes
proceedings under Title IV of ERISA to terminate or to cause a trustee to be
appointed to administer any Material Plan or a proceeding is instituted by a
fiduciary of any Material Plan against any Borrower or any Subsidiary to collect
any liability under Section 515 or 4219(c)(5) of ERISA, and in each case such
proceeding is not dismissed within thirty (30) days thereafter; or a condition
exists by reason of which the PBGC would be entitled to obtain a decree
adjudicating that any Material Plan must be terminated, and (y) the occurrence
of one or more of the matters in the preceding clause (x) could reasonably be
expected to have a Material Adverse Effect; or

                                       56
<PAGE>

     (j)  any Person or group of Persons acting in concert (as such terms are
used in Rule 13d-5 under the Securities Exchange Act of 1934, as amended) shall
own, directly or indirectly, beneficially or of record, securities of the
Borrower (or other securities convertible into such securities) representing
fifty percent (50%) or more of the combined voting power of all outstanding
securities of the Borrower entitled to vote in the election of directors, other
than securities having such power only by reason of the happening of a
contingency.

     Section 7.2.   Non-Bankruptcy Defaults. When any Event of Default (other
                    -----------------------
than those described in subsections (f) or (g) of Section 7.1 with respect to
the Borrower) has occurred and is continuing, the Administrative Agent shall, by
notice to the Borrower: (a) if so directed by the Required Lenders, terminate
the remaining Commitments to the Borrower hereunder on the date stated in such
notice (which may be the date thereof); (b) if so directed by the Required
Lenders, declare the principal of and the accrued interest on all outstanding
Loans to be forthwith due and payable and thereupon all outstanding Loans,
including both principal and interest thereon, shall be and become immediately
due and payable together with all other accrued amounts payable under the Credit
Documents without further demand, presentment, protest or notice of any kind,
including, but not limited to, notice of intent to accelerate and notice of
acceleration, each of which is expressly waived by the Borrower; and (c) if so
directed by the Required Lenders, demand that the Borrower immediately pay to
the Administrative Agent (to be held by the Administrative Agent pursuant to
Section 7.4) the full amount then available for drawing under each outstanding
Letter of Credit, and the Borrower agrees to immediately make such payment and
acknowledges and agrees that the Lenders, the Issuing Bank and the
Administrative Agent would not have an adequate remedy at law for failure by the
Borrower to honor any such demand and that the Administrative Agent, for the
benefit of the Lenders and the Issuing Bank, shall have the right to require the
Borrower to specifically perform such undertaking whether or not any drawings or
other demands for payment have been made under any Letter of Credit. The
Administrative Agent, after giving notice to the Borrower pursuant to this
Section 7.2, shall also promptly send a copy of such notice to the other Lenders
and the Issuing Bank, but the failure to do so shall not impair or annul the
effect of such notice.

     Section 7.3.   Bankruptcy Defaults.  When any Event of Default described in
                    -------------------
subsections (f) or (g) of Section 7.1 has occurred and is continuing with
respect to the Borrower, then all outstanding Loans shall immediately become due
and payable together with all other accrued amounts payable under the Credit
Documents without presentment, demand, protest or notice of any kind, each of
which is expressly waived by the Borrower; and all obligations of the Lenders
and the Issuing Bank to extend further credit pursuant to any of the terms
hereof shall immediately terminate and the Borrower shall immediately pay to the
Administrative Agent (to be held by the Administrative Agent pursuant to Section
7.4) the full amount then available for drawing under all outstanding Letters of
Credit, the Borrower acknowledging that the Lenders, the Issuing Bank, and the
Administrative Agent would not have an adequate remedy at law for failure by the
Borrower to honor any such demand and that the Lenders, the Issuing Bank, and
the Administrative Agent shall have the right to require the Borrower to
specifically perform such undertaking whether or not any drawings or other
demands for payment have been made under any of the Letters of Credit.

     Section 7.4.   Collateral for Undrawn Letters of Credit.
                    ----------------------------------------

                                       57
<PAGE>

     (a)  If the prepayment of the amount available for drawing under any or all
outstanding Letters of Credit is required under Section 7.2 or 7.3, the Borrower
shall forthwith pay the amount required to be so prepaid, to be held by the
Administrative Agent as provided in subsection (b) below.

     (b)  All amounts prepaid pursuant to subsection (a) above shall be held by
the Administrative Agent in a separate collateral account (such account, and the
credit balances, properties and any investments from time to time held therein,
and any substitutions for such account, any certificate of deposit or other
instrument evidencing any of the foregoing and all proceeds of and earnings on
any of the foregoing being collectively called the "Collateral Account") as
security for, and for application to, the reimbursement of any drawing under any
Letter of Credit then or thereafter paid by the Issuing Bank, and to the payment
of the unpaid balance of any Loans and all other due and unpaid Obligations
(collectively, the "Collateralized Obligations"). The Collateral Account shall
be held in the name of and subject to the exclusive dominion and control of the
Administrative Agent, for the benefit of the Issuing Bank, the Administrative
Agent, and the Lenders, as pledgee hereunder. If and when required by the
Borrower, the Administrative Agent shall invest and reinvest funds held in the
Collateral Account from time to time in Cash Equivalents specified from time to
time by the Borrower, provided that the Administrative Agent is irrevocably
authorized to sell on market terms any investments held in the Collateral
Account when and as required to make payments out of the Collateral Account for
application to Collateralized Obligations due and owing from the Borrower to the
Issuing Bank, the Administrative Agent, or the Lenders. When and if (A) (i) the
Borrower shall have made payment of all Collateralized Obligations then due and
payable, and (ii) all relevant preference or other disgorgement periods relating
to the receipt of such payments have passed, or (B) no Default or Event of
Default shall be continuing, the Administrative Agent shall repay to the
Borrower any remaining amounts and assets held in the Collateral Account,
provided that if the Collateral Account is being released pursuant to clause (A)
and any Letter of Credit then remains outstanding, the Borrower, prior to or
contemporaneously with such release, shall make arrangements with respect to
such outstanding Letters of Credit in the manner described in the first sentence
of Section 2.14. In addition, if the aggregate amount on deposit with the
Collateral Agent exceeds the Collateralized Obligations then existing, then the
Administrative Agent shall release and deliver such excess amount upon the
written request of the Borrower.

     Section 7.5.   Notice of Default. The Administrative Agent shall give
                    -----------------
notice to the Borrower under Section 7.2 promptly upon being requested to do so
by the Required Lenders and shall thereupon notify all the Lenders thereof.

     Section 7.6.   Expenses. The Borrower agrees to pay to the Administrative
                    --------
Agent, the Issuing Bank, and each Lender all reasonable out-of-pocket expenses
incurred or paid by the Administrative Agent, the Issuing Bank, or such Lender,
including reasonable attorneys' fees and court costs, in connection with any
Default or Event of Default hereunder or in connection with the enforcement of
any of the Credit Documents.

                                       58
<PAGE>

     Section 7.7.   Distribution and Application of Proceeds. After the
                    ----------------------------------------
occurrence of and during the continuance of an Event of Default, any payment to
the Administrative Agent, the Issuing Bank, or any Lender hereunder or from the
proceeds of the Collateral Account or otherwise shall be paid to the
Administrative Agent to be distributed and applied as follows (unless otherwise
agreed by the Borrower, the Administrative Agent, the Issuing Bank, and all
Lenders):

     (a)  First, to the payment of any and all reasonable out-of-pocket costs
and expenses of the Administrative Agent, including without limitation,
reasonable attorneys' fees and out-of-pocket costs and expenses, as provided by
this Agreement or by any other Credit Document, incurred in connection with the
collection of such payment or in respect of the enforcement of any rights of the
Administrative Agent, the Issuing Bank, or the Lenders under this Agreement or
any other Credit Document;

     (b)  Second, to the payment of any and all reasonable out-of-pocket costs
and expenses of the Issuing Bank and the Lenders, including, without limitation,
reasonable attorneys' fees and out-of-pocket costs and expenses, as provided by
this Agreement or by any other Credit Document, incurred in connection with the
collection of such payment or in respect of the enforcement of any rights of the
Lenders or the Issuing Bank under this Agreement or any other Credit Document,
pro rata in the proportion in which the amount of such costs and expenses unpaid
to each Lender or the Issuing Bank bears to the aggregate amount of the costs
and expenses unpaid to all Lenders and the Issuing Bank collectively, until all
such fees, costs and expenses have been paid in full;

     (c)  Third, to the payment of any due and unpaid fees to the Administrative
Agent or any Lender or Issuing Bank as provided by this Agreement or any other
Credit Document, pro rata in the proportion in which the amount of such fees due
and unpaid to the Administrative Agent and each Lender and Issuing Bank bears to
the aggregate amount of the fees due and unpaid to the Administrative Agent and
all Lenders and Issuing Bank collectively, until all such fees have been paid in
full;

     (d)  Fourth, to the payment of accrued and unpaid interest on the Loans or
the Reimbursement Obligations to the date of such application, pro rata in the
proportion in which the amount of such interest, accrued and unpaid to each
Lender or the Issuing Bank bears to the aggregate amount of such interest
accrued and unpaid to all Lenders and the Issuing Bank collectively, until all
such accrued and unpaid interest has been paid in full;

     (e)  Fifth, to the payment of the outstanding due and payable principal
amount of each of the Loans and the amount of the outstanding Reimbursement
Obligations (reserving cash collateral for all undrawn face amounts of any
outstanding Letters of Credit (if Section 7.4(a) has not been complied with)),
pro rata in the proportion in which the outstanding principal amount of such
Loans and the amount of such outstanding Reimbursement Obligations owing to each
Lender and Issuing Bank, together (if Section 7.4(a) has not been complied with)
with the undrawn face amounts of such outstanding Letters of Credit, bears to
the aggregate amount of all outstanding Loans, outstanding Reimbursement
Obligations and (if Section 7.4(a) has not been complied with) the undrawn face
amounts of all outstanding Letters of Credit. In the event that

                                       59
<PAGE>

any such Letters of Credit, or any portions thereof, expire without being drawn,
any cash collateral therefor shall be distributed by the Administrative Agent
until the principal amount of all Loans and Reimbursement Obligations shall have
been paid in full;

     (f)  Sixth, to the payment of any other outstanding Obligations then due
and payable, pro rata in the proportion in which the outstanding Obligations
owing to each Lender, Issuing Bank and Administrative Agent bears to the
aggregate amount of all such Obligations until all such Obligations have been
paid in full; and

     (g)  Seventh, to the Borrower or as the Borrower may direct.

ARTICLE 8.  CHANGE IN CIRCUMSTANCES.

     Section 8.1.   Change of Law.
                    -------------

     (a)  Notwithstanding any other provisions of this Agreement or any Note, if
at any time any change, after the date hereof (or, if later, after the date the
Administrative Agent or any Issuing Bank or Lender becomes the Administrative
Agent or an Issuing Bank or Lender), in applicable law or regulation or in the
interpretation thereof makes it unlawful for any Lender to make or maintain
Eurocurrency Loans, or the Issuing Bank to issue any Letter of Credit, such
Lender or Issuing Bank, as the case may be, shall promptly give written notice
thereof and of the basis therefor in reasonable detail to the Borrower, and such
Lender's or Issuing Bank's obligations to fund affected Eurocurrency Loans or
make, continue or convert such Loans under this Agreement, or to issue any such
Letters of Credit, as the case may be, shall thereupon be suspended until it is
no longer unlawful for such Lender to make or maintain such Loans or issue such
Letters of Credit.

     (b)  Upon the giving of the notice to Borrower referred to in subsection
(a) above in respect of any such Loan, (i) any outstanding such Loan of such
Lender shall be automatically converted to a Base Rate Loan in Dollars on the
last day of the Interest Period then applicable thereto or on such earlier date
as required by law, and (ii) such Lender shall make or continue its portion of
any requested Borrowing of such Loan as a Base Rate Loan in Dollars, which Base
Rate Loan shall, for all other purposes, be considered part of such Borrowing.

     (c)  Any Lender or Issuing Bank that has given any notice pursuant to
Section 8.1(a) shall, upon determining that it would no longer be unlawful for
it to make such Loans or issue such Letters of Credit, give prompt written
notice thereof to the Borrower and the Administrative Agent, and upon giving
such notice, its obligation to make, allow conversions into and maintain such
Loans or issue such Letters of Credit shall be reinstated.

     Section 8.2.   Unavailability of Deposits or Inability to Ascertain LIBOR
                    ----------------------------------------------------------
Rate. If on or before the first day of any Interest Period for any Borrowing of
----
Eurocurrency Loans the Administrative Agent determines in good faith (after
consultation with the other Lenders) that, due to changes in circumstances since
the date hereof, adequate and fair means do not exist for determining the LIBOR
Rate or such rate will not accurately reflect the cost to the Required

                                       60
<PAGE>

Lenders of funding Eurocurrency Loans for such Interest Period, the
Administrative Agent shall give written notice (in reasonable detail) of such
determination and of the basis therefor to the Borrower and the Lenders,
whereupon until the Administrative Agent notifies the Borrower and Lenders that
the circumstances giving rise to such suspension no longer exist (which the
Administrative Agent shall do promptly after they do not exist), (i) the
obligations of the Lenders to make, continue or convert Loans as or into such
Eurocurrency Loans, or to convert Base Rate Loans into such Eurocurrency Loans,
shall be suspended and (ii) each Eurocurrency Loan will automatically on the
last day of the then existing Interest Period therefor, convert into a Base Rate
Loan in Dollars.

     Section 8.3.   Increased Cost and Reduced Return.
                    ---------------------------------

     (a)  If, on or after the date hereof, the adoption of or any change in any
applicable law, rule or regulation, or any change in the interpretation or
administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance
by any Lender or Issuing Bank (or its Lending Office), with any request or
directive (whether or not having the force of law) of any such authority,
central bank or comparable agency exercising control over banks or financial
institutions generally issued after the date hereof (or, if later, after the
date the Administrative Agent, Issuing Bank, or Lender becomes the
Administrative Agent, Issuing Bank, or Lender):

          (i)    subjects any Lender or Issuing Bank (or its Lending Office) to
     any tax, duty or other charge related to any Eurocurrency Loan, Competitive
     Fixed Rate Loan, Reimbursement Obligation, or its obligation to advance or
     maintain Eurocurrency Loans, Competitive Fixed Rate Loans, or issue any
     Letter of Credit, or shall change the basis of taxation of payments to any
     Lender or Issuing Bank (or its Lending Office) of the principal of or
     interest on its Eurocurrency Loans, Competitive Fixed Rate Loans, Letters
     of Credit or Reimbursement Obligation or any participations in any thereof,
     or any other amounts due under this Agreement related to its Eurocurrency
     Loans, Competitive Fixed Rate Loans, Letters of Credit, Reimbursement
     Obligations or participations therein, or its obligation to make
     Eurocurrency Loans and Competitive Fixed Rate Loans, issue Letters of
     Credit, or acquire participations therein (except for changes with respect
     to taxes that are not Indemnified Taxes pursuant to Section 3.3); or

          (ii)   imposes, modifies or deems applicable any reserve, special
     deposit or similar requirement (including, without limitation, any such
     requirement imposed by the Board of Governors of the Federal Reserve
     System, but excluding for any Eurocurrency Loan any such requirement
     included in an applicable Statutory Reserve Rate) against assets of,
     deposits with or for the account of, or credit extended by, any Lender or
     Issuing Bank (or its Lending Office) or imposes on any Lender or Issuing
     Bank (or its Lending Office) or on the interbank market any other condition
     affecting its Eurocurrency Loans, Letters of Credit, any Reimbursement
     Obligations owed to it, or its participation in any thereof, or its
     obligation to advance or maintain Eurocurrency Loans, issue Letters of
     Credit or participate in any thereof;

                                       61
<PAGE>

and the result of any of the foregoing is to increase the cost to such Lender or
Issuing Bank (or its Lending Office) of advancing or maintaining any
Eurocurrency Loan or Competitive Fixed Rate Loan, issuing or maintaining a
Letter of Credit or participating therein, or to reduce the amount of any sum
received or receivable by such Lender or Issuing Bank (or its Lending Office) in
connection therewith under this Agreement or its Note, by an amount deemed by
such Lender or Issuing Bank to be material, then, subject to Section 8.3(c),
from time to time, within thirty (30) days after receipt of a certificate from
such Lender or Issuing Bank (with a copy to the Administrative Agent) pursuant
to subsection (c) below setting forth in reasonable detail such determination
and the basis thereof, the Borrower shall be obligated to pay to such Lender or
Issuing Bank such additional amount or amounts as will compensate such Lender or
Issuing Bank for such increased cost or reduction.

     (b)  If, after the date hereof, the Administrative Agent or any Lender or
Issuing Bank shall have reasonably determined that the adoption after the date
hereof of any applicable law, rule or regulation regarding capital adequacy, or
any change therein (including, without limitation, any revision in the Final
Risk-Based Capital Guidelines of the Board of Governors of the Federal Reserve
System (12 CFR Part 208, Appendix A; 12 CFR Part 225, Appendix A) or of the
Office of the Comptroller of the Currency (12 CFR Part 3, Appendix A), or in any
other applicable capital adequacy rules heretofore adopted and issued by any
governmental authority), or any change after the date hereof in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by the Administrative Agent or any Lender or Issuing Bank
(or its Lending Office) with any request or directive regarding capital adequacy
(whether or not having the force of law) of any such authority, central bank or
comparable agency, has or would have the effect of reducing the rate of return
on such Lender's or Issuing Bank's capital, or on the capital of any corporation
controlling such Lender or Issuing Bank, as a consequence of its obligations
hereunder to a level below that which such Lender or Issuing Bank could have
achieved but for such adoption, change or compliance (taking into consideration
such Lender's or Issuing Bank's or its controlling corporation's policies with
respect to capital adequacy in effect immediately before such adoption, change
or compliance) by an amount reasonably deemed by such Lender or Issuing Bank to
be material, then, subject to Section 8.3(c), from time to time, within thirty
(30) days after its receipt of a certificate from such Lender or Issuing Bank
(with a copy to the Administrative Agent) pursuant to subsection (c) below
setting forth in reasonable detail such determination and the basis thereof, the
Borrower shall pay to such Lender or Issuing Bank such additional amount or
amounts as will compensate such Lender or Issuing Bank for such reduction or the
Borrower may prepay all Eurocurrency Loans of such Lender or obtain the
cancellation of all such Letters of Credit.

     (c)  The Administrative Agent and each Lender and Issuing Bank that
determines to seek compensation or additional interest under this Section 8.3
shall give written notice to the Borrower and, in the case of a Lender or
Issuing Bank other than the Administrative Agent, the Administrative Agent of
the circumstances that entitle the Administrative Agent or such Lender or
Issuing Bank to such compensation no later than ninety (90) days after the
Administrative Agent or such Lender or Issuing Bank receives actual notice or
obtains actual knowledge of the law, rule, order or interpretation or occurrence
of another event giving rise to a claim hereunder. In any event the Borrower
shall not have any obligation to pay any amount with respect to claims

                                       62
<PAGE>

accruing prior to the ninetieth day preceding such written demand. The
Administrative Agent and each Lender and Issuing Bank shall use reasonable
efforts to avoid the need for, or reduce the amount of, such compensation,
additional interest, and any payment under Section 3.3, including, without
limitation, the designation of a different Lending Office, if such action or
designation will not, in the sole judgment of the Administrative Agent or such
Lender or Issuing Bank made in good faith, be otherwise disadvantageous to it;
provided that the foregoing shall not in any way affect the rights of any Lender
or Issuing Bank or the obligations of the Borrower under this Section 8.3, and
provided further that no Lender or Issuing Bank shall be obligated to make its
Eurocurrency Loans or Competitive Fixed Rate Loans hereunder or fund any amount
due in respect of a Letter of Credit at any office located in the United States
of America. A certificate of the Administrative Agent or any Lender or Issuing
Bank, as applicable, claiming compensation or additional interest under this
Section 8.3, and setting forth the additional amount or amounts to be paid to it
hereunder and accompanied by a statement prepared by the Administrative Agent or
such Lender or Issuing Bank, as applicable, describing in reasonable detail the
calculations thereof shall be prima facie evidence of the correctness thereof.
In determining such amount, such Lender or Issuing Bank may use any reasonable
averaging and attribution methods.

     Section 8.4.   Lending Offices.  The Administrative Agent and each Lender
                    ---------------
and Issuing Bank may, at its option, elect to make or maintain its Loans and
issue its Letters of Credit hereunder at the Lending Office for each type of
Loan or Letter of Credit available hereunder or at such other of its branches,
offices or affiliates as it may from time to time elect and designate in a
written notice to the Borrower and the Administrative Agent, provided that,
except in the case of any such transfer to another of its branches, offices or
affiliates made at the request of the Borrower, the Borrower shall not be
responsible for the costs arising under Section 3.3 or 8.3 resulting from any
such transfer to the extent not otherwise applicable to such Lender or Issuing
Bank prior to such transfer.

     Section 8.5.   Discretion of Lender as to Manner of Funding.  Subject to
                    --------------------------------------------
the other provisions of this Agreement, each Lender and Issuing Bank shall be
entitled to fund and maintain its funding of all or any part of its Loans and
Letters of Credit in any manner it sees fit.

     Section 8.6.   Substitution of Lender or Issuing Bank. If (a) any Lender or
                    --------------------------------------
Issuing Bank has demanded compensation or additional interest or given notice of
its intention to demand compensation or additional interest under Section 8.3,
(b) the Borrower is required to pay any additional amount to any Lender or
Issuing Bank under Section 2.12, (c) any Lender or Issuing Bank is unable to
submit any form or certificate required under Section 3.3(b) or withdraws or
cancels any previously submitted form with no substitution therefor, (d) any
Lender or Issuing Bank gives notice of any change in law or regulations, or in
the interpretation thereof, pursuant to Section 8.1, (e) any Lender or Issuing
Bank has been declared insolvent or a receiver or conservator has been appointed
for a material portion of its assets, business or properties or (f) any Lender
or Issuing Bank shall seek to avoid its obligation to make or maintain Loans or
issue Letters of Credit hereunder for any reason, including, without limitation,
reliance upon 12 U.S.C. (S) 1821(e) or (n) (1) (B), (g) any taxes referred to in
Section 3.3 have been levied or imposed (or the Borrower determines in good
faith that there is a substantial likelihood that such taxes will be levied or
imposed) so as to require withholding or deductions by the Borrower or payment
by the

                                       63
<PAGE>

Borrower of additional amounts to any Lender or Issuing Bank, or other
reimbursement or indemnification of any Lender or Issuing Bank, as a result
thereof, (h) any Lender shall decline to consent to a modification or waiver of
the terms of this Agreement or any other Credit Documents requested by the
Borrower, or (i) the Issuing Bank gives notice pursuant to Section 2.13(a)(ii)
that the issuance of the Letter of Credit would violate any legal or regulatory
restriction then applicable to such Issuing Bank, then and in such event, upon
request from the Borrower delivered to such Lender or Issuing Bank, and the
Administrative Agent, such Lender shall assign, in accordance with the
provisions of Section 10.10 and an appropriately completed Assignment Agreement,
all of its rights and obligations under the Credit Documents to another Lender
or a commercial banking institution selected by the Borrower and (in the case of
a commercial banking institution) reasonably satisfactory to the Administrative
Agent, in consideration for the payments set forth in such Assignment Agreement
and payment by the Borrower to such Lender of all other amounts which such
Lender may be owed pursuant to this Agreement, including, without limitation,
Sections 2.12, 3.3, 8.3 and 10.13.

ARTICLE 9.  THE AGENTS.

     Section 9.1.   Appointment and Authorization of Administrative Agent,
                    ------------------------------------------------------
Syndication Agent, Documentation Agent and Senior Managing Agent. Each Lender
----------------------------------------------------------------
hereby appoints STB as the Administrative Agent, ABN AMRO Bank, N.V. as the
Syndication Agent, Bank of America, N.A. as the Documentation Agent, and Wells
Fargo Bank Texas, National Association as Senior Managing Agent, under the
Credit Documents and hereby authorizes the Administrative Agent, the Syndication
Agent, the Documentation Agent and the Senior Managing Agent to take such action
as Administrative Agent, Syndication Agent, Documentation Agent and Senior
Managing Agent on each of its behalf and to exercise such powers under the
Credit Documents as are delegated to the Administrative Agent, the Syndication
Agent, the Documentation Agent and the Senior Managing Agent, respectively, by
the terms thereof, together with such powers as are reasonably incidental
thereto.

     Section 9.2.   Rights and Powers. The Administrative Agent, the Syndication
                    -----------------
Agent, the Documentation Agent and the Senior Managing Agent shall have the same
rights and powers under the Credit Documents as any other Lender and may
exercise or refrain from exercising such rights and power as though it were not
an Administrative Agent, a Syndication Agent, a Documentation Agent or a Senior
Managing Agent, and the Administrative Agent, the Syndication Agent, the
Documentation Agent and the Senior Managing Agent and their respective
Controlling Affiliates may accept deposits from, lend money to, and generally
engage in any kind of business with the Borrower or any of its Subsidiaries or
Controlling Affiliates as if it were not an Administrative Agent, a Syndication
Agent, a Documentation Agent or a Senior Managing Agent under the Credit
Documents.  The term Lender as used in all Credit Documents, unless the context
otherwise clearly requires, includes the Administrative Agent, the Syndication
Agent, the Documentation Agent and the Senior Managing Agent in their respective
individual capacities as a Lender.

     Section 9.3.   Action by Administrative Agent, Syndication Agent,
                    --------------------------------------------------
Documentation Agent and Senior Managing Agent. The obligations of the
---------------------------------------------
Administrative Agent, the

                                       64
<PAGE>

Syndication Agent, the Documentation Agent and the Senior Managing Agent under
the Credit Documents are only those expressly set forth therein. Without
limiting the generality of the foregoing, the Administrative Agent shall not be
required to take any action concerning any Default or Event of Default, except
as expressly provided in Sections 7.2 and 7.4. Unless and until the Required
Lenders (or, if required by Section 10.11, all of the Lenders) give such
direction the Administrative Agent may, except as otherwise expressly provided
herein or therein, take or refrain from taking such actions as it deems
appropriate and in the best interest of all the Lenders. In no event, however,
shall the Administrative Agent, the Syndication Agent, the Documentation Agent
or the Senior Managing Agent be required to take any action in violation of
applicable law or of any provision of any Credit Document, and each of the
Administrative Agent, the Syndication Agent, the Documentation Agent and the
Senior Managing Agent shall in all cases be fully justified in failing or
refusing to act hereunder or under any other Credit Document unless it first
receives any further assurances of its indemnification from the Lenders that it
may require, including prepayment of any related expenses and any other
protection it requires against any and all costs, expenses, and liabilities it
may incur in taking or continuing to take any such action. The Administrative
Agent shall be entitled to assume that no Default or Event of Default, other
than non-payment of any scheduled principal or interest payment due hereunder,
exists unless notified in writing to the contrary by a Lender or the Borrower.
In all cases in which the Credit Documents do not require the Administrative
Agent, the Syndication Agent, the Documentation Agent or the Senior Managing
Agent to take specific action, the Administrative Agent, each of the Syndication
Agent, the Documentation Agent and the Senior Managing Agent shall be fully
justified in using its discretion in failing to take or in taking any action
thereunder. Any instructions of the Required Lenders, or of any other group of
Lenders called for under specific provisions of the Credit Documents, shall be
binding on all the Lenders and holders of Notes.

     Section 9.4.   Consultation with Experts. Each of the Administrative Agent,
                    -------------------------
the Syndication Agent, the Documentation Agent and the Senior Managing Agent may
consult with legal counsel, independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken by it in good faith in accordance with the advice of such counsel,
accountants or experts.

     Section 9.5.   Indemnification Provisions; Credit Decision.  Neither the
                    -------------------------------------------
Administrative Agent, the Syndication Agent, the Documentation Agent, the Senior
Managing Agent nor any of their directors, officers, agents, or employees shall
be liable for any action taken or not taken by them in connection with the
Credit Documents (i) with the consent or at the request of the Required Lenders
(or, if required by Section 10.11, all of the Lenders), or (ii) in the absence
of their own gross negligence or willful misconduct.  Neither the Administrative
Agent, the Syndication Agent, the Documentation Agent, the Senior Managing Agent
nor any of their directors, officers, agents or employees shall be responsible
for or have any duty to ascertain, inquire into or verify (i) any statement,
warranty or representation made in connection with this Agreement, any other
Credit Document or any Borrowing; (ii) the performance or observance of any of
the covenants or agreements of the Borrower or any Subsidiary contained herein
or in any other Credit Document; (iii) the satisfaction of any condition
specified in Article 4, except receipt of items required to be delivered to the
Administrative Agent; or (iv) the validity, effectiveness, genuineness,
enforceability, value, worth or collectability hereof or of any other

                                       65
<PAGE>

Credit Document or of any other documents or writings furnished in connection
with any Credit Document; and the Administrative Agent, the Syndication Agent,
the Documentation Agent and the Senior Managing Agent make no representation of
any kind or character with respect to any such matters mentioned in this
sentence. The Administrative Agent, the Syndication Agent, the Documentation
Agent and the Senior Managing Agent may execute any of their duties under any of
the Credit Documents by or through employees, agents, and attorneys-in-fact and
shall not be answerable to the Lenders or any other Person for the default or
misconduct of any such agents or attorneys-in-fact selected with reasonable
care. The Administrative Agent, the Syndication Agent, the Documentation Agent
and the Senior Managing Agent shall not incur any liability by acting in
reliance upon any notice, consent, certificate, other document or statement
(whether written or oral) believed by it to be genuine or to be sent by the
proper party or parties. In particular and without limiting any of the
foregoing, the Administrative Agent and the Documentation Agent shall have no
responsibility for confirming the accuracy of any Compliance Certificate or
other document or instrument received by any of them under the Credit Documents.
The Administrative Agent, the Syndication Agent, the Documentation Agent and the
Senior Managing Agent may treat the payee of any Note as the holder thereof
until written notice of transfer shall have been filed with such Administrative
Agent signed by such owner in form satisfactory to such Administrative Agent.
Each Lender acknowledges that it has independently, and without reliance on the
Administrative Agent, the Syndication Agent, the Documentation Agent or the
Senior Managing Agent or any other Lender, obtained such information and made
such investigations and inquiries regarding the Borrower and its Subsidiaries as
it deems appropriate, and based upon such information, investigations and
inquiries, made its own credit analysis and decision to extend credit to the
Borrower in the manner set forth in the Credit Documents. It shall be the
responsibility of each Lender to keep itself informed about the creditworthiness
and business, properties, assets, liabilities, condition (financial or
otherwise) and prospects of the Borrower and its Subsidiaries, and the
Administrative Agent, the Syndication Agent, the Documentation Agent and the
Senior Managing Agent shall have no liability whatsoever to any Lender for such
matters. The Administrative Agent, the Syndication Agent, the Documentation
Agent and the Senior Managing Agent shall have no duty to disclose to the
Lenders information that is not required by any Credit Document to be furnished
by the Borrower or any Subsidiaries to such Agent at such time, but is
voluntarily furnished to such Agent (either in their respective capacity as
Administrative Agent, the Syndication Agent, the Documentation Agent or the
Senior Managing Agent or in their individual capacity).

     Section 9.6.   Indemnity. The Lenders shall ratably, in accordance with
                    ---------
their Percentages, indemnify and hold the Administrative Agent, the Syndication
Agent, the Documentation Agent, the Senior Managing Agent, and their directors,
officers, employees, agents and representatives harmless from and against any
liabilities, losses, costs or expenses suffered or incurred by it under any
Credit Document or in connection with the transactions contemplated thereby,
regardless of when asserted or arising, except to the extent they are promptly
reimbursed for the same by the Borrower and except to the extent that any event
giving rise to a claim was caused by the gross negligence or willful misconduct
of the party seeking to be indemnified. The obligations of the Lenders under
this Section 9.6 shall survive termination of this Agreement.

                                       66
<PAGE>

     Section 9.7.   Resignation of Agents and Successor Agents. The
                    ------------------------------------------
Administrative Agent, the Syndication Agent, the Documentation Agent and the
Senior Managing Agent may resign at any time and shall resign upon any removal
thereof as a Lender pursuant to the terms of this Agreement upon at least thirty
(30) days' prior written notice to the Lenders and the Borrower. Any resignation
of the Administrative Agent shall not be effective until a replacement therefor
is appointed pursuant to the terms hereof. Upon any such resignation of the
Administrative Agent, the Syndication Agent, the Documentation Agent or the
Senior Managing Agent, the Required Lenders and, so long as no Event of Default
shall then exist, with the consent of the Borrower (which consent shall not be
unreasonably withheld or delayed) shall have the right to appoint a successor
Administrative Agent, Syndication Agent, Documentation Agent or Senior Managing
Agent, as the case may be. If no successor Administrative Agent, Syndication
Agent, Documentation Agent or Senior Managing Agent, as the case may be, shall
have been so appointed by the Required Lenders and shall have accepted such
appointment within thirty (30) days after the retiring Administrative Agent's,
Syndication Agent's, Senior Managing Agent's or Documentation Agent's giving of
notice of resignation, then the retiring Administrative Agent, Syndication
Agent, Documentation Agent or Senior Managing Agent, as the case may be, may, on
behalf of the Lenders and, so long as no Event of Default shall then exist, with
the consent of the Borrower (which consent shall not be unreasonably withheld or
delayed) appoint a successor Administrative Agent, Syndication Agent,
Documentation Agent or Senior Managing Agent, as the case may be, which shall be
any Lender hereunder or any commercial bank organized under the laws of the
United States of America or of any State thereof and having a combined capital
and surplus of at least $1,000,000,000. Upon the acceptance of its appointment
as the Administrative Agent, the Syndication Agent, the Documentation Agent or
the Senior Managing Agent hereunder, such successor Administrative Agent,
Syndication Agent, Documentation Agent or Senior Managing Agent, as the case may
be, shall thereupon succeed to and become vested with all the rights and duties
of the retiring Administrative Agent, Syndication Agent, Documentation Agent or
Senior Managing Agent, as the case may be, under the Credit Documents, and the
retiring Administrative Agent, Syndication Agent, Documentation Agent or the
Senior Managing Agent shall be discharged from its duties and obligations
thereunder. After any retiring Administrative Agent's, Syndication Agent's,
Documentation Agent's or Senior Managing Agent's resignation hereunder as
Administrative Agent, Syndication Agent, Documentation Agent or Senior Managing
Agent, as the case may be, the provisions of this Article 9 and all protective
provisions of the other Credit Documents shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Administrative Agent,
Syndication Agent, Documentation Agent or Senior Managing Agent, as the case may
be.

ARTICLE 10.    MISCELLANEOUS.

     Section 10.1.  No Waiver.  No delay or failure on the part of the
                    ---------
Administrative Agent or any Lender or Issuing Bank, or on the part of the holder
or holders of any Notes, in the exercise of any power, right or remedy under any
Credit Document shall operate as a waiver thereof or as an acquiescence in any
default, nor shall any single or partial exercise thereof preclude any other or
further exercise of any other power, right or remedy.  To the fullest extent
permitted by applicable law, the powers, rights and remedies under the Credit
Documents of the Administrative Agent, the Lenders, the Issuing Bank and the
holder or holders of any Notes are

                                       67
<PAGE>

cumulative to, and not exclusive of, any powers, rights or remedies any of them
would otherwise have.

     Section 10.2.  Non-Business Day.  Subject to Section 2.5, if any payment of
                    ----------------
principal or interest on any portion of any Loan, any Reimbursement Obligation,
or any other Obligation shall fall due on a day which is not a Business Day,
interest or fees (as applicable) at the rate, if any, such portion of any Loan,
any Reimbursement Obligation, or other Obligation bears for the period prior to
maturity shall continue to accrue in the manner set forth herein on such
Obligation from the stated due date thereof to the next succeeding Business Day,
on which the same shall instead be payable.

     Section 10.3.  Documentary Taxes.  The Borrower agrees that it will pay any
                    -----------------
documentary, stamp or similar taxes payable with respect to any Credit Document,
including interest and penalties, in the event any such taxes are assessed
irrespective of when such assessment is made, other than any such taxes imposed
as a result of any transfer of an interest in a Credit Document.  Each Lender
and Issuing Bank that determines to seek compensation under this Section 10.3
shall give written notice to the Borrower and, in the case of a Lender or
Issuing Bank other than the Administrative Agent, the Administrative Agent of
the circumstances that entitle such Lender or Issuing Bank to such compensation
no later than ninety (90) days after such Lender or Issuing Bank receives actual
notice or obtains actual knowledge of the law, rule, order or interpretation or
occurrence of another event giving rise to a claim hereunder.  In any event, the
Borrower shall not have any obligation to pay any amount with respect to claims
accruing prior to the 90th day preceding such written demand.

     Section 10.4.  Survival of Representations.  All representations and
                    ---------------------------
warranties made herein or in certificates given pursuant hereto shall survive
the execution and delivery of this Agreement and the other Credit Documents, and
shall continue in full force and effect with respect to the date as of which
they were made as long as the Borrower has any Obligation hereunder or any
Commitment hereunder is in effect.

     Section 10.5.  Survival of Indemnities.  All indemnities and all provisions
                    -----------------------
relative to reimbursement to the Lenders and Issuing Bank of amounts sufficient
to protect the yield of the Lenders and Issuing Bank with respect to the Loans
and the L/C Obligations, including, but not limited to, Section 2.12, Section
3.3, Section 7.6, Section 8.3, Section 10.3, and Section 10.13 hereof, shall,
subject to Section 8.3(c), survive the termination of this Agreement and the
other Credit Documents and the payment of the Loans and all other Obligations
and, with respect to any Lender or Issuing Bank, any replacement by the Borrower
of such Lender pursuant to the terms hereof, in each case for a period of one
(1) year.

     Section 10.6.  Setoff.  In addition to any rights now or hereafter granted
                    ------
under applicable law and not by way of limitation of any such rights, upon the
occurrence of, and throughout the continuance of, any Event of Default, each
Lender and Issuing Bank and each subsequent holder of any Note is hereby
authorized by the Borrower at any time or from time to time, without notice to
the Borrower or any other Person, any such notice being hereby expressly waived,
to set off and to appropriate and to apply any and all deposits (general or
special, including, but not limited to, Indebtedness evidenced by certificates
of deposit, whether matured or unmatured, but

                                       68
<PAGE>

not including trust accounts, and in whatever currency denominated) and any
other Indebtedness at any time owing by that Lender or that subsequent holder to
or for the credit or the account of the Borrower, whether or not matured,
against and on account of the due and unpaid obligations and liabilities of the
Borrower to that Lender or Issuing Bank or that subsequent holder under the
Credit Documents, irrespective of whether or not that Lender or Issuing Bank or
that subsequent holder shall have made any demand hereunder. Each Lender or
Issuing Bank shall promptly give notice to the Borrower of any action taken by
it under this Section 10.6, provided that any failure of such Lender or Issuing
Bank to give such notice to the Borrower shall not affect the validity of such
setoff. Each Lender and Issuing Bank agrees with each other Lender and Issuing
Bank a party hereto that if such Lender or Issuing Bank receives and retains any
payment, whether by setoff or application of deposit balances or otherwise, in
respect of the Loans or L/C Obligations in excess of its ratable share of
payments on all such Obligations then owed to the Lenders and Issuing Bank
hereunder, then such Lender or Issuing Bank shall purchase for cash at face
value, but without recourse, ratably from each of the other Lenders such amount
of the Loans and L/C Obligations and participations therein held by each such
other Lender as shall be necessary to cause such Lender or Issuing Bank to share
such excess payment ratably with all the other Lenders; provided, however, that
if any such purchase is made by any Lender or Issuing Bank, and if such excess
payment or part thereof is thereafter recovered from such purchasing Lender or
Issuing Bank, the related purchases from the other Lenders or Issuing Bank shall
be rescinded ratably and the purchase price restored as to the portion of such
excess payment so recovered, but without interest.

     Section 10.7.  Notices.  Except as otherwise specified herein, all notices
                    -------
under the Credit Documents shall be in writing (including cable, telecopy or
telex) and shall be given to a party hereunder at its address, telecopier number
or telex number set forth below or such other address, telecopier number or
telex number as such party may hereafter specify by notice to the Administrative
Agent and the Borrower, given by courier, by United States certified or
registered mail, by telegram or by other telecommunication device capable of
creating a written record of such notice and its receipt.  Notices under the
Credit Documents to the Lenders, the Administrative Agent and the Issuing Bank
shall be addressed to their respective addresses, telecopier or telex number, or
telephone numbers set forth on the signature pages hereof, and to the Borrower
to:

                    Transocean Sedco Forex Inc.
                    4 Greenway Plaza
                    Houston, Texas 77046
                    Attention:  Brian C. Voegele
                    Telephone No.:  (713) 232-7587
                    Fax No.:  (713) 232-7033

With a copy to:
                    Baker Botts LLP
                    One Shell Plaza
                    Houston, Texas  77002-4995
                    Attention:  Stephen Krebs
                    Telephone No. (713) 229-1467

                                       69
<PAGE>

                    Fax No.:  (713) 229-1522

Each such notice, request or other communication shall be effective (i) if given
by telecopier, when such telecopy is transmitted to the telecopier number
specified in this Section 10.7, on the signature pages hereof or pursuant to
Section 10.10 and a confirmation of receipt of such telecopy has been received
by the sender, (ii) if given by courier, when delivered, (iii) if given by mail,
five (5) days after such communication is deposited in the mail, certified or
registered with return receipt requested, or (iv) if given by any other means,
when delivered at the addresses specified in this Section 10.7, on the signature
pages hereof or pursuant to Section 10.10; provided that any notice given
pursuant to Article 2 shall be effective only upon receipt and, provided
further, that any notice that but for this proviso would be effective after the
close of business on a Business Day or on a day that is not a Business Day shall
be effective at the opening of business on the next Business Day.

     Section 10.8.  Counterparts. This Agreement may be executed in any number
                    ------------
of counterparts, and by the different parties on different counterpart signature
pages, each of which when executed shall be deemed an original, but all such
counterparts taken together shall constitute one and the same Agreement.

     Section 10.9.  Successors and Assigns. This Agreement shall be binding upon
                    ----------------------
the Borrower, each of the Lenders, the Issuing Bank, the Administrative Agent,
the Syndication Agent, the Documentation Agent, the Senior Managing Agent, and
their respective successors and assigns, and shall inure to the benefit of the
Borrower, each of the Lenders, the Issuing Bank, the Administrative Agent, the
Syndication Agent, the Documentation Agent, the Senior Managing Agent, and their
respective successors and assigns, including any subsequent holder of any Note;
provided, however, the Borrower may not assign any of its rights or obligations
under this Agreement or any other Credit Document without the written consent of
all Lenders, the Issuing Bank, the Administrative Agent, the Syndication Agent,
the Documentation Agent and the Senior Managing Agent, and the Administrative
Agent, the Syndication Agent, the Documentation Agent and the Senior Managing
Agent may not assign any of their respective rights or obligations under this
Agreement or any Credit Document except in accordance with Article 9 and no
Lender or Issuing Bank may assign any of its rights or obligations under this
Agreement or any other Credit Document except in accordance with Section 10.10.
Any Lender or Issuing Bank may at any time pledge or assign all or any portion
of its rights under this Agreement and the Notes issued to it (i) to a Federal
Reserve Bank to secure extensions of credit by such Federal Reserve Bank to such
Lender, or (ii) in the case of any Lender that is a fund comprised in whole or
in part of commercial loans, to a trustee for such fund in support of such
Lender's obligations to such trustee; provided that no such pledge or assignment
shall release a Lender or Issuing Bank from any of its obligations hereunder or
substitute any such Federal Reserve Bank or such trustee for such Lender as a
party hereto and the Borrower, the Administrative Agent and the other Lenders
shall continue to deal solely with such Lender or Issuing Bank in connection
with the rights and obligations of such Lender and Issuing Bank under this
Agreement.

                                       70
<PAGE>

     Section 10.10. Sales and Transfers of Borrowing and Notes; Participations
                    ----------------------------------------------------------
in Borrowings and Notes.
------------------------

     (a)  Any Lender may, upon written notice to the Borrower, at any time sell
to one or more commercial banking or other financial or lending institutions
("Participants") participating interests in any Commitment of such Lender and
Related Credit Extensions of such Lender hereunder, provided that no Lender may
sell any participating interests in any such Commitment or such Related Credit
Extensions hereunder without also selling to such Participant the appropriate
pro rata share of all such Lender's Commitment and Related Credit Extensions
hereunder (but excluding interests in respect of Competitive Loans), and
provided further that no Lender shall transfer, grant or assign any
participation under which the Participant shall have rights to vote upon or to
consent to any matter to be decided by the Lenders or the Required Lenders
hereunder or under any other Credit Document or to approve any amendment to or
waiver of this Agreement or any other Credit Document except to the extent such
amendment or waiver would (i) increase the amount of such Lender's Commitment
and such increase would affect such Participant, (ii) reduce the principal of,
or interest on, any of such Lender's Borrowings, or any fees or other amounts
payable to such Lender hereunder and such reduction would affect such
Participant, (iii) postpone any date fixed for any scheduled payment of
principal of, or interest on, any of such Lender's Borrowings, or any fees or
other amounts payable to such Lender hereunder and such postponement would
affect such Participant, or (iv) release any collateral security for any
Obligation, except as otherwise specifically provided in any Credit Document. In
the event of any such sale by a Lender of participating interests to a
Participant, such Lender's obligations under this Agreement to the other parties
to this Agreement shall remain unchanged, such Lender shall remain solely
responsible for the performance thereof, such Lender shall remain the holder of
any such Note for all purposes under this Agreement, the Borrower and the
Administrative Agent shall continue to deal solely and directly with such Lender
in connection with such Lender's rights and obligations under this Agreement and
such Lender shall retain the sole right to enforce the obligations of the
Borrower under any Credit Document. The Borrower agrees that if amounts
outstanding under this Agreement and the Notes shall have been declared or shall
have become due and payable in accordance with Section 7.2 or 7.3 upon the
occurrence of an Event of Default, each Participant shall be deemed to have the
right of setoff in respect of its participating interest in amounts owing under
this Agreement and any Note to the same extent as if the amount of its
participating interest were owing directly to it as a Lender under this
Agreement or any Note, provided that such right of setoff shall be subject to
the obligation of such Participant to share with the Lenders, and the Lenders
agree to share with such Participant, as provided in Section 10.6. The Borrower
also agrees that each Participant shall be entitled to the benefits of Sections
2.12, 3.3 and 8.3 with respect to its participation in the Commitments and the
Borrowings outstanding from time to time, provided that no Participant shall be
entitled to receive any greater amount pursuant to such Sections than the
transferor Lender would have been entitled to receive in respect of the amount
of the participation transferred if no participation had been transferred and
provided, further, that Sections 8.3(c) and 8.6 shall apply to the transferor
Lender with respect to any claim by any Participant pursuant to Section 2.12,
3.3 or 8.3 as fully as if such claim was made by such Lender. Anything herein to
the contrary notwithstanding, the Borrower shall not, at any time, be obligated
to pay to any Lender any sum in excess of the sum the Borrower would

                                       71
<PAGE>

have been obligated to pay to such Lender hereunder if such Lender had not sold
any participation in its rights and obligations under this Agreement or any
other Credit Document.

     (b)  Any Lender may at any time sell to (i) any of such Lender's affiliates
or to any other Lender or any affiliate thereof that is a commercial banking or
other financial or lending institution not subject to Regulation T of the Board
of Governors of the Federal Reserve System and, (ii) with the prior written
consent of the Administrative Agent and the Borrower (which shall not be
unreasonably withheld or delayed), to one or more commercial banking or other
financial or lending institutions not subject to Regulation T of the Board of
Governors of the Federal Reserve System (any of (i) or (ii), a "Purchasing
Lender"), all or any part of its rights and obligations under this Agreement and
the other Credit Documents, pursuant to an Assignment Agreement in the form
attached as Exhibit 10.10, executed by such Purchasing Lender and such
            -------------
transferor Lender (and, in the case of a Purchasing Lender which is not then a
Lender or an affiliate thereof, by the Borrower and the Administrative Agent)
and delivered to the Administrative Agent; provided that each such sale to a
Purchasing Lender shall be in an amount of $5,000,000 (calculated as hereinafter
set forth) or more, or if in a lesser amount or if as a result of such sale the
sum of the unfunded Commitment of such Lender plus the aggregate principal
amount of such Lender's Loans and participations in Letters of Credits would be
less than an amount of $5,000,000 (calculated as hereinafter set forth), such
sale shall be of all of such Lender's rights and obligations under this
Agreement and all of the other Credit Documents payable to it to one Purchasing
Lender. Notwithstanding the requirement of the Borrower's consent set forth
above, but subject to all of the other terms and conditions of this Section
10.10(b), any Lender may sell to one or more commercial banking or other
financial or lending institutions not subject to Regulation T of the Board of
Governors of the Federal Reserve System, all or any part of their rights and
obligations under this Agreement and the other Credit Documents with only the
consent of the Administrative Agent (which shall not be unreasonably withheld or
delayed) if an Event of Default shall have occurred and be continuing. No Lender
may sell or assign any portion of its Commitment and Related Credit Extensions
(excluding Competitive Loans) to a Purchasing Lender without also selling to
such Purchasing Lender (i) the appropriate pro rata share of all such Lender's
Commitment and Related Credit Extensions hereunder (but excluding interests in
respect of Competitive Loans), and (ii) a pro rata amount of such Lender's loans
(excluding loans made by such Lender on a competitive bid basis pursuant to the
Five-Year Credit Agreement), borrowings, promissory notes, commitment, and any
obligations and interests in respect of letter of credit obligations under the
Five-Year Credit Agreement (but excluding interests in respect of loans made by
such Lender on a competitive bid basis thereunder); provided, however, that no
such sale or assignment shall be required in respect of any interests under the
Five-Year Credit Agreement where the Lender is effecting such sale or assignment
under this Agreement as a Non-Extending Lender pursuant to Section 2.15(c). For
purposes of calculating the satisfaction of the $5,000,000 minimum amount
requirement set forth in the first sentence of this Section 10.10(b) and in
Section 2.15(c), such amount shall be the sum of the total amount so sold and
assigned to the Purchasing Lender pursuant to this Agreement and the total
amount so sold and assigned to the Purchasing Lender pursuant to the Five-Year
Credit Agreement in accordance with the immediately preceding sentence. Upon
such execution, delivery and acceptance, from and after the effective date of
the transfer determined pursuant to such Assignment Agreement, (x) the
Purchasing Lender thereunder shall be a party hereto and, to the extent provided
in such Assignment Agreement, have the rights and

                                       72
<PAGE>

obligations of a Lender hereunder with a Commitment as set forth herein and (y)
the transferor Lender thereunder shall, to the extent provided in such
Assignment Agreement, be released from its obligations under this Agreement
(and, in the case of an Assignment Agreement covering all or the remaining
portion of a transferor Lender's rights and obligations under this Agreement,
such transferor Lender shall cease to be a party hereto). Such Assignment
Agreement shall be deemed to amend this Agreement to the extent, and only to the
extent, necessary to reflect the addition of such Purchasing Lender and the
resulting adjustment of Commitments and Percentages arising from the purchase by
such Purchasing Lender of all or a portion of the rights and obligations of such
transferor Lender under this Agreement, the Notes and the other Credit
Documents. On or prior to the effective date of the transfer determined pursuant
to such Assignment Agreement, the Borrower, at its own expense, shall execute
and deliver to the Administrative Agent in exchange for any surrendered Note, a
new Note as appropriate to the order of such Purchasing Lender in an amount
equal to the Commitments assumed by it pursuant to such Assignment Agreement,
and, if the transferor Lender has retained a Commitment or Borrowing hereunder,
a new Note to the order of the transferor Lender in an amount equal to the
Commitments or Borrowings retained by it hereunder. Such new Notes shall be
dated the Initial Availability Date and shall otherwise be in the form of the
Notes replaced thereby. The Notes surrendered by the transferor Lender shall be
returned by the Administrative Agent to the Borrower marked "cancelled."

     (c)  Upon its receipt of an Assignment Agreement executed by a transferor
Lender, a Purchasing Lender and the Administrative Agent (and, in the case of a
Purchasing Lender that is not then a Lender or an affiliate thereof, by the
Borrower), together with payment by the transferor Lender to the Administrative
Agent hereunder of a registration and processing fee of $1,000 (unless the
Borrower is replacing such Lender pursuant to the terms hereof, in which event
such fee shall be paid by the Borrower), the Administrative Agent shall (i)
promptly accept such Assignment Agreement, and (ii) on the effective date of the
transfer determined pursuant thereto give notice of such acceptance and
recordation to the Lenders and the Borrower. The Borrower shall not be
responsible for such registration and processing fee or any costs or expenses
incurred by any Lender, any Purchasing Lender or the Administrative Agent in
connection with such assignment except as provided above.

     (d)  If, pursuant to this Section 10.10 any interest in this Agreement or
any Loan or Note is transferred to any transferee which is organized under the
laws of any jurisdiction other than the United States of America or any State
thereof, the transferor Lender shall cause such transferee, concurrently with
the effectiveness of such transfer, (i) to represent to the transferor Lender
(for the benefit of the transferor Lender, the Administrative Agent and the
Borrower) that under applicable law and treaties no taxes will be required to be
withheld by the Administrative Agent, the Borrower or the transferor Lender with
respect to any payments to be made to such transferee in respect of the Loans or
the L/C Obligations, (ii) to furnish to the transferor Lender (and, in the case
of any Purchasing Lender, the Administrative Agent and the Borrower) two duly
completed and signed copies of either U.S. Internal Revenue Service Form W-8 BEN
or U.S. Internal Revenue Service Form W-8 ECI or such successor forms as shall
be adopted from time to time by the relevant United States taxing authorities
(wherein such transferee claims entitlement to complete exemption from U.S.
federal withholding tax on all interest payments hereunder), and (iii) to agree
(for the benefit of the transferor Lender, the Administrative Agent

                                       73
<PAGE>

and the Borrower) to provide the transferor Lender (and, in the case of any
Purchasing Lender, the Administrative Agent and the Borrower) new forms as
contemplated by Section 3.3(b) upon the expiration or obsolescence of any
previously delivered form and comparable statements in accordance with
applicable U.S. laws and regulations and amendments duly executed and completed
by such transferee, and to comply from time to time with all applicable U.S.
laws and regulations with regard to such withholding tax exemption.

     (e)  Notwithstanding any other provisions of this Section 10.10, no
transfer or assignment of the interests of any Lender hereunder or any grant of
participations therein shall be permitted if such transfer, assignment or grant
would require the Borrower to file a registration statement with the SEC or to
qualify the Loans, the Notes or any other Obligations under the securities laws
of any jurisdiction.

     Section 10.11. Amendments, Waivers and Consents. Any provision of the
                    --------------------------------
Credit Documents may be amended or waived if, but only if, such amendment or
waiver is in writing and is signed by (a) the Borrower, (b) the Required
Lenders, and (c) if the rights or duties of the Administrative Agent, the
Syndication Agent, the Documentation Agent or the Senior Managing Agent are
affected thereby, the Administrative Agent, the Syndication Agent, the
Documentation Agent or the Senior Managing Agent, as the case may be, provided
that:

          (i)    no amendment or waiver shall (A) increase the Revolving Credit
     Commitment Amount without the consent of all Lenders or increase any
     Commitment of any Lender without the consent of such Lender, or (B)
     postpone the Maturity Date without the consent of all Lenders, or reduce
     the amount of or postpone the date for any scheduled payment of any
     principal of or interest (including, without limitation, any reduction in
     the rate of interest unless such reduction is otherwise provided herein) on
     any Loan or Reimbursement Obligation or of any fee payable hereunder,
     without the consent of each Lender owed any such Obligation, or (C) release
     any Collateral for any Collateralized Obligations (other than as provided
     in accordance with Section 7.4) without the consent of all Lenders; and

          (ii)   no amendment or waiver shall, unless signed by each Lender,
     change the provisions of this Section 10.11 or the definition of Required
     Lenders or the number of Lenders required to take any action under any
     other provision of the Credit Documents.

     Section 10.12. Headings.  Section headings used in this Agreement are for
                    --------
reference only and shall not affect the construction of this Agreement.

     Section 10.13. Legal Fees, Other Costs and Indemnification.  The Borrower,
                    -------------------------------------------
upon demand by the Administrative Agent, agrees to pay the reasonable fees and
disbursements of legal counsel to the Administrative Agent in connection with
the preparation and execution of the Credit Documents (which shall be in an
amount agreed in writing by the Borrower), and any amendment, waiver or consent
related thereto, whether or not the transactions contemplated therein are
consummated.  The Borrower further agrees to indemnify each Lender, Issuing
Bank, the Administrative Agent, the Syndication Agent, the Documentation Agent,
the Senior Managing Agent, and their respective directors, officers, employees
and attorneys (collectively,

                                       74
<PAGE>

the "Indemnified Parties"), against all losses, claims, damages, penalties,
judgments, liabilities and expenses (including, without limitation, all
reasonable attorneys' fees and other reasonable expenses of litigation or
preparation therefor, whether or not such Indemnified Party is a party thereto)
which any of them may pay or incur as a result of (a) any action, suit or
proceeding by any third party or governmental authority against such Indemnified
Party and relating to any Credit Document, the Loans, any Letter of Credit, or
the application or proposed application by any of the Borrower of the proceeds
of any Loan or use of any Letter of Credit, REGARDLESS OF WHETHER SUCH CLAIMS OR
ACTIONS ARE FOUNDED IN WHOLE OR IN PART UPON THE ALLEGED SIMPLE OR CONTRIBUTORY
NEGLIGENCE OF ANY OF THE INDEMNIFIED PARTIES AND/OR ANY OF THEIR RESPECTIVE
DIRECTORS, OFFICERS, EMPLOYEES OR ATTORNEYS, (b) any investigation of any third
party or any governmental authority involving any Lender (as a lender
hereunder), Issuing Bank, or the Administrative Agent, the Syndication Agent,
the Documentation Agent or the Senior Managing Agent (in such capacity
hereunder) and related to any use made or proposed to be made by the Borrower of
the proceeds of any Loan, or use of any Letter of Credit or any transaction
financed or to be financed in whole or in part, directly or indirectly with the
proceeds of any Loan or Letter of Credit, and (c) any investigation of any third
party or any governmental authority, litigation or proceeding involving any
Lender (as a lender hereunder) or the Administrative Agent, the Syndication
Agent, the Documentation Agent or the Senior Managing Agent (in such capacity
hereunder) and related to any environmental cleanup, audit, compliance or other
matter relating to any Environmental Law or the presence of any Hazardous
Material (including, without limitation, any losses, liabilities, damages,
injuries, costs, expenses or claims asserted or arising under any Environmental
Law) with respect to the Borrower, regardless of whether caused by, or within
the control of, the Borrower; provided, however, that the Borrower shall not be
obligated to indemnify any Indemnified Party for any of the foregoing arising
out of such Indemnified Party's gross negligence or willful misconduct, as
determined pursuant to a final nonappealable judgment of a court of competent
jurisdiction or as expressly agreed in writing by such Indemnified Party. The
Borrower, upon demand by the Administrative Agent, the Syndication Agent, the
Documentation Agent, the Senior Managing Agent or a Lender or Issuing Bank at
any time, shall reimburse such Agent or such Lender or Issuing Bank for any
reasonable legal or other expenses incurred in connection with investigating or
defending against any of the foregoing, except if the same is excluded from
indemnification pursuant to the provisions of the preceding sentence. Each
Indemnified Party agrees to contest any indemnified claim if requested by the
Borrower, in a manner reasonably directed by the Borrower, with counsel selected
by the Indemnified Party and approved by the Borrower, which approval shall not
be unreasonably withheld or delayed. Any Indemnified Party that proposes to
settle or compromise any such indemnified claim shall give the Borrower written
notice of the terms of such proposed settlement or compromise reasonably in
advance of settling or compromising such claim or proceeding and shall obtain
the Borrower's prior written consent thereto, which consent shall not be
unreasonably withheld or delayed; provided that the Indemnified Party shall not
be restricted from settling or compromising any such claim if the Indemnified
Party waives its right to indemnity from the Borrower in respect of such claim.

     Section 10.14. Governing Law; Submission to Jurisdiction; Waiver of Jury
                    ---------------------------------------------------------
Trial.
------

                                       75
<PAGE>

     (A)  THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS, AND THE RIGHTS AND
DUTIES OF THE PARTIES THERETO, SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

     (B)  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HERETO
AGREE THAT ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF
THE ADMINISTRATIVE AGENT, THE DOCUMENTATION AGENT, THE SENIOR MANAGING AGENT,
THE SYNDICATION AGENT, THE LENDERS, THE ISSUING BANK, OR THE BORROWER MAY BE
BROUGHT AND MAINTAINED IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE
BOROUGH OF MANHATTAN OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE
BORROWER HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET
FORTH ABOVE AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY
IN CONNECTION WITH SUCH LITIGATION.  THE BORROWER HEREBY IRREVOCABLY DESIGNATES
CT CORPORATION SYSTEM, 111 8TH AVENUE, NEW YORK, NEW YORK 10011, AS THE
DESIGNEE, APPOINTEE AND AGENT OF THE BORROWER TO RECEIVE, FOR AND ON BEHALF OF
THE BORROWER, SERVICE OF PROCESS IN SUCH JURISDICTION IN ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT HERETO.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, THE BORROWER FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS, BY
REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE
STATE OF NEW YORK.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE
BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY HAVE
OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN
ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM.  TO THE EXTENT THAT THE BORROWER HAS OR
HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY
LEGAL PROCESS (WHETHER THROUGH SERVICE OF NOTICE, ATTACHMENT PRIOR TO JUDGMENT,
ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS
PROPERTY, THE BORROWER HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS
AGREEMENT AND THE OTHER CREDIT DOCUMENTS.

                                       76
<PAGE>

     (C)  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO
WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR
DEFEND ANY RIGHTS UNDER THIS AGREEMENT OR UNDER ANY AMENDMENT, INSTRUMENT,
DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN
CONNECTION HEREWITH OR ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN
CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING
SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

     (D)  EACH PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.7. NOTHING IN THIS
AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS
IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

     Section 10.15. Confidentiality. Each of the Agents, Issuing Bank and
                    ---------------
Lenders agree to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (i) to their respective
affiliates and to prospective Purchasing Lenders and Participants and their
respective directors, officers, employees and agents, including accountants,
legal counsel and other advisors who have reason to use such Information in
connection with the evaluation of the transactions contemplated by this
Agreement (subject to similar confidentiality provisions as provided herein)
solely for purposes of evaluating such Information, (ii) to the extent requested
by any regulatory authority, (iii) to the extent required by applicable law or
regulation or by any subpoena or similar legal process, (iv) in connection with
the exercise of any remedies hereunder or any proceedings relating to this
Agreement or the other Credit Documents, (v) with the consent of the Borrower,
or (vi) to the extent such Information (x) becomes publicly available other than
as a result of a breach of this Section 10.15, or (y) becomes available on a
non-confidential basis from a source other than the Borrower or its affiliates
or the Lenders or their respective affiliates. For purposes hereof,
"Information" means all information received by the Lenders from the Borrower
relating to the Borrower or its business, other than any such information that
is available to the Lenders on a non-confidential basis prior to disclosure by
the Borrower. The Lenders shall be considered to have complied with their
respective obligations if they have exercised the same degree of care to
maintain the confidentiality of such Information as they would accord their own
confidential information.

     Section 10.16. Effectiveness.  This Agreement shall become effective on the
                    -------------
date (the "Effective Date") on which the Borrower, the Administrative Agent, and
each Lender have signed and delivered to the Administrative Agent a counterparty
signature page hereto or, in the case of a Lender, the Administrative Agent has
received a facsimile notice that such a counterpart has been signed and mailed
to the Administrative Agent.

     Section 10.17. Severability.  Any provision of this Agreement that is
                    ------------
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any

                                       77
<PAGE>

such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

     Section 10.18. Currency Conversion.  All payments of Obligations under this
                    -------------------
Agreement, the Notes or any other Credit Document shall be made in Dollars.  If
any payment of any Obligation, whether through payment by the Borrower or the
proceeds of any collateral, shall be made in a currency other than Dollars, such
amount shall be converted into Dollars at the current market rate for the
purchase of Dollars with the currency in which such obligation was paid, as
quoted by the Lender who is the Administrative Agent in accordance with the
methods customarily used by such Lender for such purposes as of the time of such
determination.  The parties hereto hereby agree, to the fullest extent that they
may effectively do so under applicable law, that (i) if for the purposes of
obtaining any judgment or award it becomes necessary to convert from any
currency other than Dollars into Dollars any amount in connection with the
Obligations, then the conversion shall be made as provided above on the Business
Day before the day on which the judgment or award is given, (ii) in the event
that there is a change in the rate of exchange prevailing between the Business
Day before the day on which the judgment or award is given and the date of
payment, the Borrower will pay to the Administrative Agent, for the benefit of
the Lenders, such additional amounts (if any) as may be necessary, and the
Administrative Agent, on behalf of the Lenders, will pay to the Borrower such
excess amounts (if any) as result from such change in the rate of exchange, to
assure that the amount paid on such date is the amount in such other currency,
which when converted at the rate of exchange described herein on the date of
payment, is the amount then due in Dollars, and (iii) any amount due from the
Borrower under this Section 10.18 shall be due as a separate debt and shall not
be affected by judgment or award being obtained for any other sum due.

     Section 10.19. Change in Accounting Principles, Fiscal Year or Tax Laws. If
                    --------------------------------------------------------
(i) any change in accounting principles from those used in the preparation of
the financial statements of the Borrower referred to in Section 5.9 is hereafter
occasioned by the promulgation of rules, regulations, pronouncements and
opinions by or required by the Financial Accounting Standards Board or the
American Institute of Certified Public Accounts (or successors thereto or
agencies with similar functions), and such change materially affects the
calculation of any component of any financial covenant, standard or term found
in this Agreement, or (ii) there is a material change in federal or foreign tax
laws which materially affects any of the Borrower and its Subsidiaries' ability
to comply with the financial covenants, standards or terms found in this
Agreement, the Borrower and the Lenders agree to enter into negotiations in
order to amend such provisions (with the agreement of the Required Lenders or,
if required by Section 10.11, all of the Lenders) so as to equitably reflect
such changes with the desired result that the criteria for evaluating any of the
Borrower's and its Subsidiaries' financial condition shall be the same after
such changes as if such changes had not been made. Unless and until such
provisions have been so amended, the provisions of this Agreement shall govern.

     Section 10.20. Final Agreement. The Credit Documents constitute the entire
                    ---------------
understanding among the Credit Parties, the Lenders, the Issuing Bank, and the
Administrative Agent and supersede all earlier or contemporaneous agreements,
whether written or oral, concerning the subject matter of the Credit Documents.
THIS WRITTEN AGREEMENT TOGETHER WITH THE OTHER CREDIT DOCUMENTS REPRESENTS THE
FINAL

                                       78
<PAGE>

AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     Section 10.21. Officer's Certificates. It is not intended that any
                    ----------------------
certificate of any officer of the Borrower delivered to the Administrative Agent
or any Lender pursuant to this Agreement shall give rise to any personal
liability on the part of such officer.

     Section 10.22. Effect of Inclusion of Exceptions. It is not intended that
                    ---------------------------------
the specification of any exception to any covenant herein shall imply that the
excepted matter would, but for such exception, be prohibited or required.

                                       79
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their duly authorized officers as of the day and
year first above written.

                              BORROWER:
                              --------

                              TRANSOCEAN SEDCO FOREX INC.,
                              a Cayman Islands company

                              By:     ______________________
                              Name:
                              Title:

                              Attest: ______________________
                              Name:
                              Title:

                                       80
<PAGE>

                              SUNTRUST BANK,
                              As Administrative Agent, Issuing Bank,
                              and a Lender

                              By:   ______________________________
                              Name:
                              Title:

COMMITMENT AMOUNT:       $21,484,375

PERCENTAGE:                0.0859375%

Address for Notices:
-------------------

SunTrust Bank
SunTrust Plaza
303 Peachtree Street, N.E., 3rd Floor
Atlanta, GA  30308
Attn:   Mr. John Fields
Telephone No.:      404/724-3667
Telecopy No.:       404/827-6270

Lending Office:
--------------

SunTrust Bank
SunTrust Plaza
303 Peachtree Street, N.E., 3rd Floor
Atlanta, GA  30308
Attn:   Mr. John Fields
Telephone No.:      404/724-3667
Telecopy No.:       404/827-6270

Payment Instructions:
--------------------

Bank Name:          SunTrust Bank
ABA Number:         061 000 104
City, State:        Atlanta, Georgia
Account Number:     908 8000 112
Attention:          Pat Etheridge 404/588-8358
Reference:          Transocean Sedco Forex Inc.

                                       81
<PAGE>

                              ABN AMRO BANK, N.V.,
                              As Syndication Agent and a Lender

                              By:   ____________________________
                              Name:
                              Title:

COMMITMENT AMOUNT:       $19,921,875

PERCENTAGE:                0.0796875%

Address for Notices:
-------------------

ABN AMRO Bank, N.V.
208 South LaSalle Street, Suite 1500
Chicago, IL  60604-1003
Attn:               Dina Tucci-Albro
Telephone No.:      312/992-5120
Telecopy No.:       312/992-5111

with a copy to:

ABN AMRO Bank, N.V.
Three Riverway, Suite 1700
Houston, TX  77056
Attn:               Deanna Breland
Telephone No.:      713/964-3326
Telecopy No.:       713/964-5801

Lending Office:
--------------

ABN AMRO Bank, N.V.
208 South LaSalle Street, Suite 1500
Chicago, IL  60604-1003
Attn:               Loan Administration
Telephone No.:      312/992-5150
Telecopy No.:       312/992-5155

                                       82
<PAGE>

                              ABN AMRO BANK, N.V., (Continued)
                              As Syndication Agent and a Lender
Letter of Credit:
----------------

ABN AMRO Bank N.V.
200 West Monroe Street, Suite 1100
Chicago, IL  60608-5002

Payment Instructions:
--------------------

Bank Name:               ABN AMRO Bank, N.V.
ABA Number:              026009580
City, State:             New York, NY
Account Name:            F/O ABN AMRO Bank, N.V.
                         Chicago Branch CPU
Account Number:          650-001-178941
Attention:
Reference:               CPU 00193232 - Transocean Sedco

Letters of Credit:
-----------------

Bank Name:               ABN AMRO Bank, N.V.
ABA Number:              026009580
City, State:             New York, NY
Account Name:            F/O ABN AMRO Bank, N.V.
                         Chicago Trade Services CPU
Account Number:          653-001 1738 41
Attention:
Reference:               Transocean Sedco

                                       83
<PAGE>

                              BANK OF AMERICA, N.A.,
                              As Documentation Agent and a Lender

                              By:    ____________________________
                              Name:
                              Title:

COMMITMENT AMOUNT:       $19,921,875

PERCENTAGE:                0.0796875%

Address for Notices:
-------------------

Bank of America, N.A.
333 Clay Street, Suite 4550
Houston, TX  77002
Attn:  Patrick Delaney, Managing Director
Telephone No.:      713/651-4929
Telecopy No.:       713/651-4808

Lending Office:
--------------

Bank of America, N.A.
901 Main Street
Dallas, TX  75202
Attn:  Ramon Garcia
       Customer Service Representative
Telephone No.:      214/209-2119
Telecopy No.:       214/290-9462

with a copy to:

Bank of America, N.A.
333 Clay Street, Suite 4550
Houston, TX  77002
Attn:  Thelma Johnson
Telephone No.:      713/651-4864
Telecopy No.:       713/651-4808

                                       84
<PAGE>

                              BANK OF AMERICA, N.A., (continued)
                              As Documentation Agent and a Lender

Payment Instructions:
--------------------

Bank Name:         Bank of America, N.A.
ABA Number:        #111000012
City, State:
Account Number:    1292000883
Attention:         Corporate Loan Funds
Reference:         Transocean Sedco Forex Inc.

                                       85
<PAGE>

                              WELLS FARGO BANK TEXAS,
                              NATIONAL ASSOCIATION,
                              As Senior Managing Agent and a Lender

                              By:   _____________________________
                              Name:
                              Title:

COMMITMENT AMOUNT:       $19,921,875

PERCENTAGE:                0.0796875%

Address for Notices:
-------------------

Wells Fargo Bank Texas, National Association
1000 Louisiana
3rd Floor, Energy Department
Houston, TX  77002
Attn:  Spencer Smith, Vice President
Telephone No.:      713/319-1362
Telecopy No.:       713/739-1087

Lending Office:
--------------

Wells Fargo Bank Texas, National Association
1740 Broadway
Denver, CO  80274
Attn:  Tanya Ivie, Production Manager
Telephone No.:      303/863-6102
Telecopy No.:       303/863-2729

Payment Instructions:
--------------------

Bank Name:          Wells Fargo Bank
ABA Number:         121-000-248
City, State:        San Francisco, CA
Account Number:     2712501201
Attention:          Syndicated Loans
Reference:          Transocean Sedco Forex

                                       86
<PAGE>

                              NATIONAL WESTMINSTER BANK PLC,
                              NEW YORK BRANCH,
                              As a Lender

                              By:   _____________________
                              Name:
                              Title:

                              NATIONAL WESTMINSTER BANK PLC,
                              NASSAU BRANCH,
                              As a Lender

                              By:   _____________________
                              Name:
                              Title:

COMMITMENT AMOUNT:       $16,406,250

PERCENTAGE:                0.0656250%

Address for Notices:
-------------------

National Westminster Bank Plc
600 Travis Street, Suite 6070
Houston, TX  77002
Attn:               Scott Barton
                    Senior Vice President
Telephone No.:      713/221-2436
Telecopy No.:       713/221-2430

National Westminster Bank Plc
600 Travis Street, Suite 6070
Houston, TX  77002
Attn:               John Preece
                    Assistant Vice President
Telephone No.:      713/221-2429
Telecopy No.:       713/221-2430

                                       87
<PAGE>

                              NATIONAL WESTMINSTER BANK PLC,
                              NEW YORK BRANCH,  (Continued)

                              NATIONAL WESTMINSTER BANK PLC,
                              NASSAU BRANCH,

Administrative Contacts - Borrowings, Payments, Etc.
----------------------------------------------------

National Westminster Bank Plc
65 East 55/th/ Street, 24/th/ Floor
New York, NY  10022
Attn:               Sheila Shaw/Juanita Baird
Telephone No.:      212/401-1406/1420
Telecopy No.:       212/401-1494

Domestic Lending Office:
-----------------------

National Westminster Bank Plc
65 East 55/th/ Street, 24/th/ Floor
New York, NY  10022

Eurodollar Lending Office:
-------------------------

65 East 55/th/ Street, 24/th/ Floor
New York, NY  10022

Payment Instructions:
--------------------

Bank Name:          Chase Manhattan Bank, New York
ABA Number:         2712507201
City, State:        New York, NY
Account Name:       NatWest Plc, New York FX
Account Number:     0011012440
Attention:          Commercial Loans
Reference:          Transocean Sedco Forex Inc.

                                       88
<PAGE>

                              THE BANK OF TOKYO-MITSUBISHI, LTD.
                              As a Lender

                              By:   ________________________
                              Name:
                              Title:

COMMITMENT AMOUNT:       $16,406,250

PERCENTAGE:                0.0656250%

Address for Notices:
-------------------

The Bank of Tokyo-Mitsubishi, Ltd.
1100 Louisiana Street
Suite 2800
Houston, TX  77002
Attn:  Iris Munoz, Senior Associate
Telephone No.:       713/655-3814
Telecopy No.:        713/655-3855

Lending Office:
--------------

The Bank of Tokyo-Mitsubishi, Ltd.
1100 Louisiana Street
Suite 2800
Houston, TX  77002
Attn:  Nadra Breir
Telephone No.:       713/655-3847
Telecopy No.:        713/658-0116

Payment Instructions:
---------------------

Bank Name:           The Bank of Tokyo-Mitsubishi, Ltd. - New York
ABA Number:          026009632
City, State:         New York, New York
Account Name:        The Bank of Tokyo-Mitsubishi, Ltd. - Houston Agency
Account Number:      30001710
Attention:           Nadra Breir
Reference:           Transocean Sedco Forex

                                       89
<PAGE>

                              THE FUJI BANK, LIMITED,
                              As a Lender

                              By:    ___________________
                              Name:
                              Title:

COMMITMENT AMOUNT:       $16,406,250

PERCENTAGE:                0.0656250%

Address for Notices:
-------------------

The Fuji Bank, Limited
Two World Trade Center
New York, NY  10048
Attn:  Tina Catapano
Telephone No.:       212/898-2099
Telecopy No.:        212/488-8216

Lending Office:
--------------

The Fuji Bank, Limited
1221 McKinney Street
Suite 4100
Houston, TX  77010
Attn:  Mark Polasek
Telephone No.:       713/650-7863
Telecopy No.:        713/759-0717

Payment Instructions:
--------------------

Bank Name:           The Fuji Bank, Limited
ABA Number:          026009700
City, State:
Account Number:      515011
Attention:           US Corporate
Reference:           Transocean Sedco Forex Inc.

                                       90
<PAGE>

                                   BANK ONE, NA
                                   As a Lender

                                   By:   _________________________
                                   Name:
                                   Title:

COMMITMENT AMOUNT:       $16,406,250

PERCENTAGE:              0.0656250%

Address for Notices:
-------------------

Bank One, NA
910 Travis
6th Floor
Houston, TX  77002
Attn:               Dorothy Meachum
Telephone No.:      713/751-3735
Telecopy No.:       713/751-3760

Borrowings, Payments, Interest, Etc.
------------------------------------

Bank One, NA
1 Bank One Plaza
0634, 1FNP, 10
Chicago, IL  60670
Attn:               Bill Laird
Telephone No.:      312/732-5635
Telecopy No.:       312/732-4840

Domestic Lending Office:
-----------------------

Bank One, NA
1 Bank One Plaza
0634, 1FNP, 10
Chicago, IL  60670

                                       91
<PAGE>

                                   BANK ONE, NA   (Continued)
                                   As a Lender

Eurodollar Lending Office:
-------------------------

Bank One, NA
1 Bank One Plaza
IL 1 0634
Chicago, IL  60670

Payment Instructions:
--------------------

Bank Name:           Bank One, Chicago
ABA Number:          071000013
City, State:         Chicago, IL
Account Number:      481152860000
Account Name:        LSII Incoming Clearing A/c
Attention:           Bill Laird
Reference:           Transocean Sedco Forex Inc.

                                       92
<PAGE>

                                   THE BANK OF NEW YORK
                                   As a Lender

                                   By:   _______________________
                                   Name:
                                   Title:

COMMITMENT AMOUNT:            $16,406,250

PERCENTAGE:                   0.0656250%

Address for Notices:
-------------------

The Bank of New York
One Wall Street, 19th Floor
New York, NY  10286
Attn:  Theresa M. Burke
       Oil & Gas Division
Telephone No.:      212/635-7532
Telecopy No.:       212/635-7923

<TABLE>
<CAPTION>
Domestic Borrowings:                    Payment Instructions:
-------------------                     --------------------
<S>                                     <C>                  <C>
The Bank of New York                    Bank Name:           The Bank of New York
101 Barclay Street                      ABA Number:          021000018
New York, NY  10286                     City, State:         New York, NY
Attn:  Bill Barbiero                    Account Name:        Comm. Loan Servicing Dept.
       Commercial Loan Servicing        Account Number:      111 556
        Department                      Attention:           Bill Barbiero
Telephone No.:                          Reference:           Transocean Sedco Forex Inc.
Telecopy No.:
</TABLE>

Eurodollar Lending Office:
-------------------------

<TABLE>
<S>                                     <C>                  <C>
The Bank of New York                    Bank Name:           The Bank of New York
101 Barclay Street                      ABA Number:          021000018
New York, NY  10286                     City, State:         New York, NY
Attn:  Bill Barbiero                    Account Name:        Comm. Loan Servicing Dept.
       Commercial Loan Servicing        Account Number:      111 556
        Department                      Attention:           Bill Barbiero
Telephone No.:                          Reference:           Transocean Sedco Forex Inc.
Telecopy No.:
</TABLE>

                                       93
<PAGE>

                                   THE BANK OF NEW YORK    (Continued)
                                   As a Lender

<TABLE>
<CAPTION>
Letters of Credit:                      Payment Instructions:
-----------------                       --------------------
<S>                                     <C>                  <C>
The Bank of New York                    Bank Name:           The Bank of New York
101 Barclay Street                      ABA Number:          021000018
New York, NY  10286                     City, State:         New York, NY
Attn:  Venus McGregor                   Account Name:        Trade Services Department
       Trade Services Department        Account Number:      GLA #111115
Telephone No.:                          Attention:           Venus McGregor
Telecopy No.:                           Reference:           Transocean Sedco Forex Inc.
</TABLE>

<TABLE>
<CAPTION>
Domestic Borrowings:                    Payment Instructions:
-------------------                     --------------------
<S>                                     <C>                  <C>
The Bank of New York                    Bank Name:           The Bank of New York
101 Barclays Street                     ABA Number:          021000018
New York, NY  10286                     City, State:         New York, NY
Attn:  Bill Barbiero                    Account Name:        Comm. Loan Servicing Dept.
       Commercial Loan Servicing        Account Number:      111 556
        Department                      Attention:           Bill Barbiero
Telephone No.:                          Reference:           Transocean Sedco Forex Inc.
Telecopy No.:
</TABLE>

                                       94
<PAGE>

                                   CITIBANK, N.A.,
                                   As a Lender

                                   By:   _________________________
                                   Name:
                                   Title:

COMMITMENT AMOUNT:       $16,406,250

PERCENTAGE:              0.0656250%

Address for Notices:
-------------------

Citibank, N.A.
399 Park Avenue
New York, NY  10043
Attn:         Mark S. Johnson
              Vice President
Telephone No.:      212/559-4721
Telecopy No.:       212/793-3588

Lending Office:
--------------

Citibank, N.A.
Two Penns Way
Suite 200
New Castle, DE  19720
Attn:  Sean Portrait
Telephone No.:      302/894-6083
Telecopy No.:       302/894-6120

Payment Instructions:
--------------------

Bank Name:          Citibank, N.A.
ABA Number:         021000089
City, State:        New Castle, DE
Account Name:       Shipping Concentration
Account Number:     4054-8046
Attention:          Sean Portrait
Reference:          Transocean Sedco Forex Inc.

                                       95
<PAGE>

                                   CREDIT LYONNAIS NEW YORK BRANCH,
                                   As a Lender

                                   By:   _____________________
                                   Name:
                                   Title:

COMMITMENT AMOUNT:       $16,406,250

PERCENTAGE:              0.0656250%

Address for Notices:
-------------------

Credit Lyonnais
1000 Louisiana
Suite 5360
Houston, TX  77002
Attn:         Page Dillehunt
Telephone No.:      713/753-8713
Telecopy No.:       713/751-0307

Credit Lyonnais
1301 Avenue of the Americas
New York, NY  10019
Attn:         Bindu Menon
Telephone No.:      212/761-7633
Telecopy No.:       917/849-5440

Domestic and Eurodollar Lending Office:
--------------------------------------

Credit Lyonnais New York Branch
1301 Avenue of the Americas
New York, NY  10019

                                       96
<PAGE>

                                   CREDIT LYONNAIS NEW YORK BRANCH,
                                   As a Lender    (Continued)

Payment Instructions:
--------------------

Bank Name:           Credit Lyonnais New York
ABA Number:          026008073
City, State:         New York, NY
Account Number:      01-88179-3701-00-179
Attention:
Reference:           Transocean Sedco Forex Inc.

                                       97
<PAGE>

                                   DEN NORSKE BANK ASA,
                                   As a Lender

                                   By:   ______________________
                                   Name:
                                   Title:

COMMITMENT AMOUNT:       $16,406,250

PERCENTAGE:                0.0656250%

Address for Notices:
-------------------

Den norske Bank ASA
200 Park Avenue, 31/st/ Floor
New York, NY  10166
Attn:         Barbara Gronquist
              Senior Vice President
Telephone No.:       212/681-3859
Telecopy No.:        212/681-3900

Lending Office:
--------------

Den norske Bank ASA
299 Park Avenue
New York, NY  10166
Attn:  Bill Trivedi
       Credit Manager
Telephone No.:       212/681-3824
Telecopy No.:        212/681-3900

Payment Instructions:
--------------------

Bank Name:           Bank of New York
ABA Number:          021 000 018
City, State:         New York, NY
Account Name:        Den Norske Bank - New York / SWIFT:DNBAUS33
Account Number:      Transocean - A/C# 10768999
Attention:           Anny Peralta
Reference:           Transocean Sedco Forex Inc.

                                       98
<PAGE>

                                   CREDIT SUISSE FIRST BOSTON,
                                   As a Lender

                                   By:   _____________________
                                   Name:
                                   Title:

COMMITMENT AMOUNT:       $7,812,500

PERCENTAGE:               0.0312500%

Address for Notices:
-------------------

Credit Suisse First Boston
11 Madison Avenue
New York, NY  10010
Attn:         James Moran
              Director
Telephone No.:       212/325-9176
Telecopy No.:        212/325-8615

Lending Office:
--------------

Credit Suisse First Boston
5 World Trade Center
New York, NY  10048
Attn:   Jenaro Sarasola
Telephone No.:       212/322-1384
Telecopy No.:        212/335-0593

Payment Instructions:
--------------------

Bank Name:           Bank of New York
ABA Number:          021 000 018
City, State:         New York, NY
Account Name:        CSFBNY Loan Clearing
Account Number:      8900329262
Attention:           ___________________
Reference:           Transocean Sedco Forex Inc.

                                       99
<PAGE>

                                   THE BANK OF NOVA SCOTIA,
                                   As a Lender

                                   By:   ______________________
                                   Name:
                                   Title:

COMMITMENT AMOUNT:       $7,812,500

PERCENTAGE:               0.0312500%

Address for Notices:
-------------------

The Bank of Nova Scotia
Houston Representative Office
1100 Louisiana, Suite 3000
Houston, TX  77002
Attn:        Jean Paul Purdy
Telephone No.:       713/759-3433
Telecopy No.:        713/752-2425

The Bank of Nova Scotia
Houston Representative Office
1100 Louisiana, Suite 3000
Houston, TX  77002
Attn:        Julie Hellman
Telephone No.:       713/759-3442
Telecopy No.:        713/752-2425

Lending Office:
--------------

PRIMARY                                      SECONDARY
The Bank of Nova Scotia                      The Bank of Nova Scotia
Atlanta Agency                               Atlanta Agency
Suite 2700, 600 Peachtree St. NE             Suite 2700, 600 Peachtree St. NE
Atlanta, GA  30308                           Atlanta, GA  30308
Attn:  Donna Gardner                         Attn:   Michelle Wingard
Telephone No.:       404/877-1552            Telephone No.:   404/877-1562
Telecopy No.:        404/888-8998            Telecopy No.:    404/888-8998

                                      100
<PAGE>

                                   THE BANK OF NOVA SCOTIA, (Continued)
                                   As a Lender

Domestic and Eurodollar Lending Office:
--------------------------------------

The Bank of Nova Scotia
Atlanta Agency
Suite 2700, 600 Peachtree Street, N.E.
Atlanta, GA  30308

Payment Instructions:
--------------------

Bank Name:          The Bank of Nova Scotia, New York Agency
ABA Number:         026002532
City, State:        New York, NY
Account Name:       BNS Atlanta Agency
Account Number:     #0606634
Reference:          Transocean Sedco Forex Inc.

                                      101
<PAGE>

                                   CHRISTIANIA BANK OG KREDITKASSE
                                   ASA, NEW YORK BRANCH,
                                   As a Lender

                                   By:   _____________________
                                   Name:
                                   Title:

COMMITMENT AMOUNT:       $7,812,500

PERCENTAGE:               0.0312500%

Address for Notices:
---------------------------------

Christiania Bank og Kreditkasse
  ASA, New York Branch
11 West 42/nd/ Street
New York, NY  10036
Attn:        Martin Lunder
             Senior Vice President
Telephone No.:       212/827-4828
Telecopy No.:        212/827-4888

Lending Office:
--------------

Christiania Bank og Kreditkasse
  ASA, New York Branch
11 West 42/nd/ Street
New York, NY  10036
Attn:        Jacqueline Ng
             Assistant Treasurer
Telephone No.:       212/827-4897
Telecopy No.:        212/827-4888

Payment Instructions:
--------------------

Bank Name:           Bank of New York, New York
ABA Number:          021000018
City, State:         New York, NY
Account Name:        Christiania Bank, New York
Account Number:      #8026120277
Attention:           Loan Administration
Reference:           Transocean Sedco Forex Inc.

                                      102
<PAGE>

                                   AUSTRALIA AND NEW ZEALAND
                                   BANKING GROUP LIMITED,
                                   As a Lender

                                   By:   ___________________
                                   Name:
                                   Title:

COMMITMENT AMOUNT:       $4,687,500

PERCENTAGE:               0.0187500%

Address for Notices:
-------------------

Australia and New Zealand Banking
 Group Limited
1177 6/th/ Avenue
New York, NY  10036
Attn:         David Giacalone
              Vice President
Telephone No.:       212/801-9814
Telecopy No.:        212/556-4814

Lending Office:
--------------

Australia and New Zealand Banking
 Group Limited
1177 6/th/ Avenue
New York, NY  10036
Attn:         Tessie Amante
              Supervisor
Telephone No.:       212/801-9744
Telecopy No.:        212/801-9859

Payment Instructions:
--------------------

Bank Name:           Chase Manhattan Bank
ABA Number:          021-000-021
City, State:         New York, NY
Account Name:        Australia and New Zealand Bank, New York
Account Number:      400-928884
Reference:           Transocean Sedco Forex Inc. Revolvers

                                      103
<PAGE>

                                   WESTDEUTSCHE LANDESBANK
                                   GIROZENTRALE, NEW YORK BRANCH,
                                   As a Lender

                                   By:   _______________________
                                   Name:
                                   Title:

COMMITMENT AMOUNT:       $9,375,000

PERCENTAGE:               0.0375000%

Address for Notices:
-------------------

Westdeutsche Landesbank Girozentrale,
 New York Branch
1211 Avenue of the Americas
New York, NY  10036
Attn:        Richard Newman
             Director, Corporate Finance
Telephone No.:       212/963-5203
Telecopy No.:        212/963-5308

Lending Office:
--------------

Westdeutsche Landesbank Girozentrale,
 New York Branch
1211 Avenue of the Americas
New York, NY  10036
Attn:        Thomas Lee
             Manager
Telephone No.:       212/852-0204
Telecopy No.:        212/852-6148

Payment Instructions:
--------------------

Bank Name:           The Chase Manhattan Bank, N.A.
ABA Number:          021-000-021
City, State:         New York, NY
Account Name:        Westdeutsche Landesbank Girozentrale, New York Branch
Account Number:      9201060663
Attention:           Grace Curran
Reference:           Transocean Sedco Forex Inc. Revolvers

                                      104

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]