Document:

EXECUTION COPY

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                               RBF EXPLORATION CO.

                    ________________________________________

                   $200,000,000 SENIOR SECURED CLASS A1 NOTES
                    $50,000,000 SENIOR SECURED CLASS A2 NOTES

                    ________________________________________

                               ___________________

                          SECOND SUPPLEMENTAL INDENTURE
                                  AND AMENDMENT

                            DATED AS OF June 2, 2000

                    CHASE BANK OF TEXAS, NATIONAL ASSOCIATION

                                     Trustee

                               ___________________

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<PAGE>
     This  SECOND  SUPPLEMENTAL  INDENTURE  AND  AMENDMENT ("Second Supplemental
Indenture"), dated as of June 2, 2000 but effective as of the Effective Date (as
hereinafter  defined),  is  among RBF Exploration Co., a Nevada corporation (the
"Issuer"),  BTM  Capital  Corporation,  a  Delaware  corporation  (the "Owner"),
Nautilus  Exploration Limited, a company incorporated in the Cayman Islands (the
"Standby  Purchaser"), R&B Falcon Deepwater (UK) Limited, a company incorporated
in  England  and  Wales  (the  "Lessee")  and  Chase  Bank  of  Texas,  National
Association,  a  banking  association  incorporated under the laws of the United
States,  as  Trustee  (the  "Trustee").

                                    RECITALS
                                    --------

     WHEREAS,  the  Issuer  and  the  Trustee entered into a Trust Indenture and
Security Agreement, dated as of August 12, 1999 as supplemented and amended by a
certain  Supplemental  Indenture  and  Amendment  dated  as  of February 1, 2000
between  the  Issuer,  the  Owner  and the Trustee (as amended the "Indenture"),
pursuant  to  which  the  Issuer has originally issued $200,000,000 in principal
amount  of  Senior Secured Class A1 Notes and $50,000,000 in principal amount of
Senior  Secured  Class  A2 Notes (collectively, the "Notes") to the Note Holders
(as  defined  in  the  Indenture);  and

     WHEREAS, the Issuer and the Owner entered into a certain Equipment Sale and
Funding  Agreement  dated  as  of  February 1, 2000 pursuant to which the Issuer
conveyed certain property and equipment relating to the Drilling Rig (as defined
in  the Indenture) to the Owner and entered into related financing arrangements,
and  the  Issuer,  the  Owner, and Hyundai (as defined in the Indenture) entered
into  a  certain  novation agreement of the Construction Contract (as defined in
the  Indenture)  pursuant  to which the Owner acquired that part of the Drilling
Rig  being  constructed  and  supplied  by  Hyundai;  and

     WHEREAS,  pursuant to the Indenture and the original Assignment of Drilling
Contract  (as defined in the Indenture) the Issuer and/or the Owner have granted
certain  liens  and  security interests in certain accounts, equipment and other
property as more fully described in the Indenture and the Assignment of Drilling
Contract  and  the Owner has granted a certain First Preferred Ship Mortgage (as
defined  in  the  Indenture) covering among other things the Drilling Rig to the
Trustee  for  the  benefit  of the Note Holders to secure among other things the
Notes  (all such indebtedness including, without limitation, the Notes is herein
referred  to  as  the  "Senior  Indebtedness");  and

     WHEREAS,  the Owner and Sovereign Corporate Limited, a company incorporated
in  England  and  Wales  ("Sovereign") have entered into a certain Hire Purchase
Agreement  dated  as  of  March 20, 2000 with respect to the Drilling Rig, which
requires  the  consent of the Trustee and the Note Holders (as amended by a Side
Letter  of  even date herewith and as may further be amended, the "Hire Purchase
Agreement"),  and Sovereign now proposes to lease the Drilling Rig to the Lessee
pursuant  to  a certain Lease Agreement of even date herewith a copy of which is
attached  hereto  as  Exhibit  A  (the  "Lease");  and

<PAGE>
     WHEREAS,  Sovereign,  the  Lessee,  the  Owner,  the  Trustee,  the Standby
Purchaser  and  Alliance  &  Leicester  Group Treasury plc (in such capacity and
including  successor  entities, the "Proceeds Account Bank") have entered into a
Deed  of Proceeds and Priorities of even date herewith (the "Deed of Proceeds");
and

     WHEREAS,  pursuant  to  the  Hire  Purchase Agreement the Owner proposes to
grant in favor of Sovereign a Second Naval Mortgage covering the Drilling Rig as
security  for  the obligations of the Lessee under the Lease, a copy of which is
attached  hereto  as  Exhibit  B-1  (the  "Second Preferred Ship Mortgage"); and

     WHEREAS,  the consent of the Trustee is required for the Owner to grant the
Second  Preferred  Ship  Mortgage,  and  the  Note Holders have consented to the
Trustee's giving such consent pursuant to this Second Supplemental Indenture and
an  Amendment  and  Supplement  to First Naval Mortgage of even date herewith, a
copy  of  which  is  attached  hereto  as  Exhibit  B-2 (the "Amendment to First
Mortgage");  and

     WHEREAS,  Sovereign,  the  Standby  Purchaser,  the  Lessee, the Owner, the
Issuer  and  the  Trustee are entering into a Subordination Agreement, a copy of
which  is  attached  as  Exhibit  C  (the  "Subordination  Agreement");  and

     WHEREAS,  the  Standby  Purchaser and Sovereign are entering into a Standby
Put-Option  Agreement, a copy of which is attached as Exhibit D (the "Put-Option
Agreement");  and

     WHEREAS,  the  Standby Purchaser and the Lessee are entering into a Standby
Lease Agreement, a copy of which is attached as Exhibit E (the "Standby Lease");
and

     WHEREAS,  the Issuer, the Lessee and SDDI, with the consent of the Trustee,
are  entering  into  a Transfer and Amendment Agreement in the form of Exhibit F
("Transfer  Agreement");  and

     WHEREAS,  the  Issuer  and Commerzbank AG are entering into a Reimbursement
Agreement of even date herewith ("Reimbursement Agreement"), a Deposit Agreement
and  Deposit  Charge  of  even  date  herewith  ("Deposit  Agreement")  and  a
Counterparty  Payment  Agreement  of  even  date herewith ("Counterparty Payment
Agreement"  and  collectively  with  the Reimbursement Agreement and the Deposit
Agreement,  the  "Assumption  Documents");  and

     WHEREAS,  the  Note  Holders  desire  a  liquidity  facility to cover for a
specified  period  of  time shortfalls in the repayment of interest on the Notes
resulting  from  certain  insolvency events with respect to the Owner and, thus,
Swiss  Re  Financial  Products Corporation ("Liquidity Provider (Swiss Re)") and
the  Trustee have entered into an Irrevocable Revolving Credit Agreement of even
date  herewith  ("Credit  Agreement");  and

     WHEREAS, the Lessee is entering into a Fixed and Floating Security Document
of  even  date  herewith  ("Debenture")  in  favor  of  the  Trustee;  and

                                        2
<PAGE>
     WHEREAS,  Section  13.8 of the Indenture provides that the Indenture may be
amended  or  supplemented  subject  to the provisions of Article 11 thereof; and

     WHEREAS,  as of the Effective Date, the Performance Bond (as defined in the
Indenture) will have expired by its terms and the Trustee shall return, with all
deliberate  speed,  the  Performance  Bond  to  the  Sureties (as defined in the
Indenture);  and

     WHEREAS,  pursuant  to  Section  11.2  of  the  Indenture, each of the Note
Holders  have  consented  to  the Trustee entering into this Second Supplemental
Indenture and each other Lease Implementation Document to which the Trustee is a
party;  and

     WHEREAS, the Issuer, the Owner and the Trustee now desire, with the consent
of each of the Note Holders, to amend and supplement the Indenture to consent to
and  provide  for the transactions above described and to allow for and make the
Standby  Purchaser  and  the  Lessee  parties  thereto;

     NOW,  THEREFORE,  to  comply  with  the  provisions of the Indenture and in
consideration  of  the  above  premises,  the  Issuer,  the  Owner,  the Standby
Purchaser,  the  Lessee  and the Trustee  (collectively, the "Parties") covenant
and agree for the equal and proportionate benefit of the respective Note Holders
as  follows:

                                    ARTICLE 1

                                     GENERAL
                                     -------

     SECTION 1.01.     This Second Supplemental Indenture is supplemental to the
Indenture and does and shall be deemed to form a part of, and shall be construed
in connection with and as part of, the Indenture for any and all purposes.  From
the  Effective  Date,  in  accordance  with  Section  13.8 and Article 11 of the
Indenture,  and  by executing and delivering this Second Supplemental Indenture,
the  Parties  whose signatures appear below are subject to all of the provisions
of  the  Indenture  and  this  Second  Supplemental  Indenture.

     SECTION 1.02.     Capitalized terms not otherwise defined herein shall have
the  respective  meaning  ascribed  thereto  in  the  Indenture.

                                    ARTICLE 2

                                TRUSTEE CONSENTS
                                ----------------

     SECTION  2.01.     With  the  express  written  consent of each of the Note
Holders,  but  subject  to  Article 8 hereof, the Trustee hereby consents to the
following:

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<PAGE>
     (a)  the  Owner  and Sovereign implementing the Hire Purchase Agreement and
Sovereign  and  the  Lessee  entering  into  the  Lease;

     (b)  the  Owner's  execution  and  delivery  of  the  Second Preferred Ship
Mortgage  in  favor  of  Sovereign;

     (c)  the  execution  and delivery of the Transfer Agreement, subject to the
Trustee's  security  interest  in  and  assignment  of  proceeds  under the SDDI
Contract;

     (d)  the  Standby  Purchaser  and  Sovereign  entering  into the Put-Option
Agreement  and  the Standby Purchaser and Lessee entering into the Standby Lease
and  the  Deed  of  Proceeds;

     (e)  the  termination  of  the  Operation and Maintenance Agreement and its
replacement  in  the  form  of  Exhibit  G  hereto;

     (f)  the  application  of  the  First  Installment  (as defined in the Hire
Purchase  Agreement)  proceeds  to  the  repayment  in full of the Hull Loan (as
defined  in the Sale and Funding Agreement) and the Equipment Purchase Price (as
defined  in the Sale and Funding Agreement), and the Issuer's acknowledgement to
the  Owner that the Hull Loan and the Equipment Purchase Price have thereby been
fully  satisfied  and  discharged;

     (g)  the  use  of  the proceeds received from the Owner in satisfaction and
discharge  of  the Hull Loan and the Equipment Purchase Price to meet certain of
the  Issuer's  obligations and liabilities under or in connection with the Lease
Implementation  Documents  and  the  Assumption  Documents;

     (h)  the  transfer  by  the  Issuer  to  the Parent of any proceeds of cash
collateral  returned  to the Issuer pursuant to the Assumption Documents and the
release  of  such  proceeds  from  the  Trust  Estate;

     (i)  the  Issuer  entering  into  each  of  the  Reimbursement  Agreement,
Counterparty  Payment  Agreement  and  the  Deposit  Agreement;  and

     (j)  the  execution,  delivery  and  performance  of  any  other  Lease
Implementation  Document  to the extent such performance does not violate any of
the  terms  and  provisions  of  the  Indenture.

                                    ARTICLE 3

                          ADDITIONAL SECURITY INTERESTS
                          -----------------------------

     SECTION  3.01.     To  secure  the  prompt  and  complete  payment  of  the
principal  of,  and interest and any applicable Make-Whole Amount on, all of the
Notes  issued and delivered and Outstanding,

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<PAGE>
the  payment  of  all  other  sums owing under the Indenture and under all other
Project Documents (including, without limitation, the obligations of the Trustee
under Section 2.05 of the Credit Agreement) (the "Project Indebtedness") and the
performance of the covenants contained in the Indenture and in all other Project
Documents,  and  in consideration of the premises and of the covenants contained
herein  and  the  sum  of  One Dollar ($1.00) paid by the Trustee to the Standby
Purchaser  at or before the delivery hereof, the receipt and sufficiency whereof
are  hereby  acknowledged,  the Standby Purchaser has hereby granted, bargained,
sold,  conveyed,  assigned, transferred, mortgaged, affected, pledged, set over,
confirmed,  granted a continuing security interest in, and hypothecated and does
hereby grant, bargain, sell, convey, assign, transfer, mortgage, affect, pledge,
set  over,  confirm,  grant a continuing security interest to the Trustee and to
any  co-trustee  or separate trustee hereafter acting pursuant to the Indenture,
and  to  their  respective  successors  and assigns in trust forever (subject to
Section  12.1 of the Indenture), all of its right, title and interest in, to and
under  the  following  described  Properties  whether  now  owned,  existing  or
hereafter  acquired  or  arising  (all  of  such  Properties,  including without
limitation  all  properties hereafter specifically subjected to the liens of the
Indenture  by  any indenture supplemental thereto to which the Standby Purchaser
has  consented  in  writing,  being  hereinafter collectively referred to as the
"Standby  Purchaser  Trust  Estate"):

          (a)  the  Equipment  and  the  Drilling  Rig;

          (b)  the  Deed  of  Proceeds,  Hire Purchase Agreement and the Standby
     Lease together with any amendments or modifications to any of the foregoing
     and  all  payments under and all accounts and General Intangibles generated
     therefrom;

          (c)  any  insurance proceeds (other than insurance proceeds payable to
     the  Standby Purchaser under liability policies for tort, environmental and
     similar  liabilities),  condemnation  proceeds  and  the  accounts, deposit
     accounts,  issues, profits, products, revenues and other income of and from
     the  Drilling Rig and/or the Equipment and all the estate, right, title and
     interest  of every nature whatsoever of the Standby Purchaser in and to the
     same  and  every  part  thereof;  and

          (d)  all  proceeds  and  products  of  any  of  the  foregoing.

Notwithstanding  the  foregoing,  the  Standby  Purchaser Trust Estate shall not
include  the  Standby  Purchaser  Excepted  Properties.

     SECTION  3.02.     To secure the prompt and complete payment of the Project
Indebtedness and the performance of the covenants contained in the Indenture and
in  all other Project Documents, and in consideration of the premises and of the
covenants contained herein and the sum of One Dollar ($1.00) paid by the Trustee
to  the  Lessee  at  or  before the delivery hereof, the receipt and sufficiency
whereof are hereby acknowledged, the Lessee has hereby granted, bargained, sold,
conveyed,  assigned,  transferred,  mortgaged,  affected,  pledged,  set  over,
confirmed,  granted a continuing security interest in, and hypothecated and does
hereby grant, bargain, sell, convey, assign, transfer, mortgage, affect, pledge,
set  over,  confirm,  grant a continuing security interest to the Trustee and to
any  co-trustee  or separate trustee hereafter acting pursuant to the Indenture,
and  to  their  respective

                                        5
<PAGE>
successors  and  assigns  in  trust  forever  (subject  to  Section  12.1 of the
Indenture),  all of its right, title and interest in, to and under the following
described  Properties  whether  now  owned,  existing  or  hereafter acquired or
arising  (all  of  such  Properties, including without limitation all properties
hereafter  specifically subjected to the liens of the Indenture by any indenture
supplemental  thereto  to  which  the  Lessee  has  consented  in writing, being
hereinafter  collectively  referred to as the "Lessee Trust Estate" and together
with  the  Standby  Purchaser  Trust  Estate called the "Second Additional Trust
Estate"):

          (a)  All  equipment,  inventory,  fixtures and other goods (including,
     without  limitation,  the  Drilling Rig) in all forms, wherever located and
     whether  now  or  hereafter  existing,  which are owned by the Lessee or in
     which  the  Lessee  otherwise  has  any  rights  and all parts thereof, all
     accessions  thereto,  all  replacements  or  substitutions  therefor,  all
     accounts  now or hereafter arising in connection therewith, and all chattel
     paper,  documents  and  general  intangibles  covering or relating thereto;

          (b)  All  accounts, General Intangibles (including without limitation,
     the  Deed  of  Proceeds,  the  SDDI Contract, the Operation and Maintenance
     Agreement, the Lease and the Standby Lease), instruments, chattel paper and
     documents, deposit accounts (other than the Lessee Account to the extent it
     contains  the  initial  deposit therein and the Lessee Excepted Properties)
     and  investment  property  (including,  without  limitation,  all Permitted
     Investments)  now  owned  or  hereafter  acquired;

          (c)  All  Properties  subjected  to  the Lien of the Indenture by each
     supplemental indenture entered into and delivered pursuant to Article 11 of
     the  Indenture;

          (d)  All  insurance proceeds (other than insurance proceeds payable to
     the  Lessee  under  liability  policies for tort, environmental and similar
     liabilities),  condemnation  proceeds  and  the  accounts, issues, profits,
     products,  revenues  and other income of and from the SDDI Contract and the
     other  Properties  subjected or required to be subjected to the Lien of the
     Indenture  and  all  the  estate, right, title and interest of every nature
     whatsoever  of  the  Lessee  in  and  to  the  same and every part thereof;

          (e)  The  Collection  Account,  the  Lessee Collection Account and all
     other  monies  now or hereafter paid or deposited or required to be paid or
     deposited  to  or  with a Trustee pursuant to Section 4.1, 4.2, 4.3, 5.1 or
     5.3  of  the  Indenture  or  any other term hereof or any term of the other
     Project  Documents and held or required to be held by any Trustee under the
     Indenture;

          (f)  Any  and  all  other  Properties  and  any  and all other rights,
     interests and privileges granted by the Lessee to any Trustee in accordance
     with  the provisions of the Indenture and pursuant to or in connection with
     the provisions of the other Project Documents and all Permitted Investments
     with  respect  to  any  of  the  foregoing;  and

          (g)  All  proceeds  and  products  of  any  of  the  foregoing.

                                        6
<PAGE>
Notwithstanding  the  foregoing,  the  Lessee Trust Estate shall not include the
Lessee  Excepted  Properties.

     The security interests granted under and pursuant to Sections 3.01 and 3.02
above  are  granted  under  and  pursuant to the Indenture and all of the Second
Additional  Trust Estate is and shall be considered a part of the Collateral and
the  Trust  Estate  under  and  pursuant  to  the  Indenture  and  this  Second
Supplemental  Indenture  for  all  intents  and  purposes.  All of the terms and
conditions  of the Indenture with respect to the Collateral and the Trust Estate
shall  apply  to  the  Second Additional Trust Estate.  Specifically and in this
connection  the  provisions  of  Sections  7.4 through and including 7.12 of the
Indenture apply to the Second Additional Trust Estate and the provisions of such
Sections with respect to the "Issuer" apply equally to the Standby Purchaser and
the  Lessee.

     Section  3.03. In recognition of the willingness of the Lessee to grant the
security  in  the  Lessee  Trust Estate under or pursuant to this Indenture, the
Trustee  and  the  Note Holders are prepared to limit their recourse against the
Lessee  in  the  manner,  and subject to the provisions, set out in this Section
3.03,  and  each  of  the  parties  to this Indenture (including the Trustee for
itself  and  on  behalf  of  the  Note  Holders)  consents to such limitation of
recourse  by  the  Trustee  and  the  Note  Holders.

     The  Trustee  acknowledges  and  agrees  that  all  moneys, obligations and
liabilities  which are to be paid, repaid, performed, satisfied or discharged by
the  Lessee  under  and  pursuant  to this Indenture shall be recoverable by the
Trustee  and  the  Note  Holders  only  from  and  to the extent of the Lessee's
interest  in the Lessee Trust Estate and that the Lessee shall not be personally
liable  for  such  moneys,  obligations  and  liabilities;  provided,  however:

          (a)  the  foregoing  limitation  of  recourse  to  the Lessee shall be
     ignored  in  the  determination  of  the Project Indebtedness for which the
     Lessee  is  liable, and the liabilities and obligations of the Lessee shall
     include  all  moneys,  obligations  and  liabilities  which are to be paid,
     repaid,  performed,  satisfied or discharged by the Lessee, notwithstanding
     the  foregoing  limitation  of  recourse;  and

          (b)  without  limiting  Sections  7.9  and  7.11 of the Indenture, the
     Trustee  shall  be  entitled  (but  not obligated, without prejudice to the
     other  powers,  rights and remedies of the Trustee under or pursuant to the
     Indenture  and  the  other  Project  Documents  or as a matter at law or in
     equity):

               (i)  to  take  any  legal  action  or  proceeding  to  obtain  a
          declaratory  or  other similar judgment or order as to the obligations
          and  liabilities  of  the  Lessee;  and

               (ii)  to  the  extent  that  such  claim  or proof is a necessary
          procedural  step  to enable the realization or enforcement of the full
          benefit  of  the  Indenture  and  the  Lessee  Trust Estate, or to the
          exercise  by the Trustee of any right, title, interest and benefit in,
          to,  under or pursuant to the Indenture or the Lessee Trust Estate, to
          make  or file an action seeking relief in an insolvency, bankruptcy or
          analogous  or related

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<PAGE>
          proceeding  against  the Lessee or to make or file a claim or proof in
          an  insolvency,  bankruptcy  or  analogous  or  related  proceeding in
          relation  to  the  Lessee.

     Notwithstanding  the  foregoing provisions of this Section 3.03, the Lessee
is  and  shall  remain  personally  and  fully  liable for any and all Indemnity
Matters  suffered,  incurred  or paid by the Trustee or any Note Holder (and the
Trustee  and  any  Note  Holder  shall  be free to pursue all powers, rights and
remedies  against  the  Lessee  without  any  restriction)  as  a  result  of:

          (a)  the  Lessee's gross negligence or willful misconduct with respect
     to any aspect of the transactions contemplated by the Project Documents; or

          (b)  the  performance,  satisfaction or discharge of all or any of the
     Lessee's  obligations  under  the  Indenture  (other than its liability for
     Project  Indebtedness  under  Section  3.01  above),  the  Operation  and
     Maintenance  Agreement, the SDDI Contract or any other Project Document; or

          (c)  any representation or warranty made or given (or, as the case may
     be,  repeated) by the Lessee herein, in the Indenture, the Deed of Proceeds
     or any other Project Document being untrue, inaccurate or misleading in any
     material  respect  when  made,  given  or  repeated.

     The  foregoing  provisions  of  this  Section 3.03 shall limit the personal
liability  of  the  Lessee  only  for  the  payment,  repayment,  performance,
satisfaction  and  discharge  of  moneys,  obligations and liabilities under and
pursuant  to  the  Project  Documents  but  shall  not:

          (a) limit or restrict in any way the accrual of interest on any moneys
     (except  that  limitations as to the personal liability of the Lessee shall
     also  apply  to  the  payment  of  such  interest);  or

          (b) derogate from or otherwise limit any power or right of the Trustee
     to  enforce,  recover,  realize  or  apply the Lessee Trust Estate; and the
     Trustee shall be entitled to reimbursement in full of all moneys payable or
     expressed  to  be  payable by the Lessee in respect of Project Indebtedness
     from  the  proceeds  of  such  enforcement,  recovery,  realization  or
     application.

                                    ARTICLE 4

                                LESSEE COVENANTS
                                ----------------

     SECTION  4.01.     Notwithstanding  any  of  the  foregoing consents or any
other  terms  hereof, the Lessee covenants and agrees that it will not assign or
transfer  its  interest  in any of the Project Documents or any Property that is
part  of  the  Trust  Estate (including, without limitation, any interest in the
SDDI  Contract,  the Drilling Rig, the Lease and the Standby Lease) to any other
Person  without

                                        8
<PAGE>
(i)  the  prior  express written consent of Trustee and each of the Note Holders
and  (ii)  prior  written  notice  to  each  Rating  Agency.

     SECTION 4.02. The Lessee covenants and agrees that until payment is made in
full  of  all of the Notes and all other amounts payable by the Issuer under the
Indenture  or  secured  thereby,  the  Lessee  shall:

          (a)  comply with and perform all of the covenants of the Issuer (as if
     the  references  therein  to the Issuer were also references to the Lessee)
     under  Sections  8.1,  8.2,  8.3,  8.4, 8.5, 8.9, 8.10, 8.11, 8.12 and 8.13
     (excluding  the  requirement under Section 8.13(iv) to elect an Independent
     Director  to  the  Lessee's Board of Directors) and Sections 9.1, 9.2, 9.3,
     9.4,  9.5,  9.7,  9.12,  9.13, 9.14, 9.15, 9.17, 9.18, 9.19 and 9.20 of the
     Indenture  provided,  however,  for  this  purpose:

               (i)  Section 9.1(a) shall be deemed to include a reference to the
          Lease;

               (ii) the exceptions to Section 9.2 shall be deemed to include the
          Second  Preferred  Ship  Mortgage and the Second Priority Assignments;

               (iii)  Section  9.4 shall be deemed to be amended in its entirety
          to  read  as  follows:

                    "9.4  Dividends,  Distributions  and Redemptions. The Lessee
                          ------------------------------------------
               will  not  purchase, redeem or otherwise acquire for value any of
               its stock now or hereafter outstanding, return any capital to its
               stockholder  or  make  any  distributions  of  its  assets to its
               stockholder,  except  for  ordinary  dividends  paid to Parent.";

               (iv) the Lessee's entering into the Lease shall be deemed to be a
          permitted  exception  to  Section  9.7;

               (v)  the  Lessee's entering into leasing arrangements (including,
          without  limitation,  the  leasing  of  furnished office equipment and
          arrangements  with  Affiliates  for  the  Affiliates'  provisioning of
          payroll  and  secretarial  services  to  the  Lessee)  on  reasonable
          commercial  terms incidental to and in the ordinary course of Lessee's
          business  activities,  which have been limited by Section 4.10 hereto,
          and  the  Lessee's  entering  into service and/or employment contracts
          with  up  to  three directors, a single Drilling Rig manager and up to
          two  Drilling  Rig  superintendents  each  of  which shall be deemed a
          permitted exception, to the extent required, to Sections 9.7 and 9.14.

          (b)  execute  such  documents  and instruments as required to promptly
     cure  any  defects  in  the  creation, execution and delivery of any of the
     Project  Documents  to  which  it  is a party and all such other documents,
     agreements  (including, without limitation, account control agreements) and
     instruments  to  comply  with or accomplish the covenants and agreements of
     the  Issuer,  Lessee  or  the  Owner in the Project Documents or to further

                                        9
<PAGE>
     evidence  or  more fully describe the Lessee Trust Estate or to correct any
     omissions in the Project Documents to which it is a party, or to state more
     fully  the  security  obligations  set  out  herein  or in any of the other
     Project  Documents, or to perfect, protect or preserve any Liens created by
     the  Lessee  (or  others  to  the  extent  Lessee's  execution or action is
     required) pursuant hereto or any of the other Project Documents, or to make
     any recordings or obtain any consents as may be necessary or appropriate in
     connection therewith. Further, the Lessee will promptly execute and deliver
     or  cause to be executed or delivered all further instruments and documents
     and  take all further action that may be necessary or desirable or that the
     Trustee may request in order to (a) perfect and protect the Liens and other
     rights  created  or purported to be created by the Lessee hereby and by the
     other  Project  Documents  and  the  first priority of such Liens and other
     rights;  (b)  enable  the  Trustee  to  exercise and enforce its rights and
     remedies  hereunder  in  respect of the Collateral; or (c) otherwise effect
     the purposes of the Indenture, including, without limitation: executing and
     filing such supplements to the Indenture and such financing or continuation
     statements (or amendments thereto) as may be necessary or desirable or that
     the  Trustee  may  reasonably  request in order to perfect and preserve the
     Liens  created  or  purported to be created by the Lessee (or others to the
     extent  Lessee's  execution  or  action  is  required)  hereby  or thereby;

          (c)  enter  into, perform and cause to be performed each of the Lease,
     the  Standby  Lease,  the SDDI Contract through the Transfer Agreement, the
     Transfer  Agreement  and  the Operation and Maintenance Agreement and shall
     not  agree to any amendments, modifications or waivers of the terms thereof
     without  express  written  consent  of  the  Trustee;

          (d)  provide  prompt  written  notice  to  the Trustee of any Material
     default  under  the  SDDI  Contract,  the  Lease  or the Standby Lease; and

          (e)  provide  to  SDDI (with copies to the Trustee) such duly executed
     forms  or  statements  (including  Internal  Revenue Service Form W-8ECI or
     W-9),  and  in  such  number  of  copies,  which may, from time to time, be
     prescribed  by  law  and which, pursuant to applicable provisions of (i) an
     income tax treaty between the United States and the country of residence of
     the Lessee, (ii) the Code, or (iii) any applicable rule or regulation under
     the  Code,  permit  SDDI  to make payments to the Lessee, the Issuer or the
     Trustee  pursuant  to the SDDI Contract free of deduction or withholding of
     Taxes.

     SECTION  4.03.     The  Lessee  agrees that it will not take any action (i)
which it knows to be contrary to covenants and other terms and provisions of the
Indenture,  the  First  Preferred Ship Mortgage or any other Project Document or
(ii)  which  it  knows will inhibit the performance of such covenants, terms and
provisions  by  the  Issuer,  the  Owner,  the Trustee, the Standby Purchaser or
otherwise.

     SECTION  4.04.     Subject to Section 3.03 above, the Lessee hereby assumes
and  agrees  to pay as and when due the Project Indebtedness.  The Lessee agrees
that any and all payments and other proceeds (other than Total Loss Proceeds (as
defined  in the Deed of Proceeds) which shall be payable as provided in the Deed
of  Proceeds)  paid or payable from or under the Trust Estate (including without
limitation,  the SDDI Contract) shall be paid into the Lessee Collection Account

                                       10
<PAGE>
established  with  the Trustee under Section 6.02 hereof and applied as provided
in  Section 6.03 hereof. Notwithstanding the foregoing, the Issuer remains fully
and  completely  liable  to  pay  the  Project  Indebtedness  as  and  when due.

     SECTION  4.05.     The  Lessee  represents  and  warrants  that  (a)  the
execution,  delivery,  performance  and  enforcement of this Second Supplemental
Indenture  or  any of the documents referred to herein or in the whereas clauses
hereto  will  not: (i) subject the Trustee or any Note Holder to any Tax imposed
by  the  United Kingdom or any taxing authority thereof or therein; (ii) require
that  the  Trustee  or  any  Note Holder qualify, or otherwise become subject to
regulation,  under  any law, rule, regulation or decree of the United Kingdom or
any  governmental  authority  thereof  or  therein;  provided  always,  that the
correctness  of  this  representation  and  warranty relative to any Note Holder
depends upon that Note Holder not having purchased its Note or Notes through any
office,  branch,  place  of  business,  permanent establishment or other taxable
presence  in  the  United  Kingdom,  or  through  any other physical or economic
connection  with  the  United  Kingdom of any kind whether on its own account or
through  any  agency  and  (b)  this Second Supplemental Indenture and the other
documents  referred  to  herein  and in the whereas clauses hereto are in proper
form  for  the  enforcement  thereof  in the United Kingdom and that in order to
enforce  the same in the United Kingdom it is not necessary that any Tax be paid
or  registration  or  other  formality  complied  with.

     SECTION  4.06.  The  Lessee  shall  not  exercise any rights granted to the
Lessee  pursuant  to  Clause  4.1  of  the  Transfer Agreement without the prior
written  consent  of  the  Trustee  and  the  Note  Holders.

     SECTION  4.07.  If at any time any applicable law, regulation or regulatory
requirement  or  any  governmental  authority,  monetary  agency or central bank
requires  any  deduction  or withholding in respect of Lessee Related Taxes from
any payment due hereunder or under any of the other Project Documents the Lessee
shall:

          (a)  if  the payment is to be made by the Lessee, increase the payment
     in  respect of which the deduction or withholding is required to the extent
     necessary  to  ensure  that,  after  the  making  of  such  deduction  or
     withholding,  the payee receives on the due date for such payment a net sum
     equal  to  the  sum  which  it would have received had no such deduction or
     withholding  been  required  to  be  made;

          (b)  if the payment is to be made by any person other than the Lessee,
     pay  directly  to the payee such sum as will, after taking into account any
     deduction  or  withholding  which is required to be made in respect of such
     sum,  enable  the  payee  to  receive on the due date for payment a net sum
     equal  to the sum which the payee would have received in the absence of any
     obligation  to  make  a  deduction  or  withholding;

          (c)  pay  to  the  relevant  authority  within  the period for payment
     permitted by applicable law the full amount of the deduction or withholding
     (including,  but  without prejudice to the generality of the foregoing, the
     full  amount of any deduction or withholding from any increased amount paid
     pursuant  to  this  Section  4.07);  and

                                       11
<PAGE>
          (d)  furnish  to  the payee within the period for payment permitted by
     applicable  law,  appropriate  receipts  evidencing payment to the relevant
     authority  of  all  amounts  deducted  or  withheld  as  aforesaid.

Provided  that,  if  a payee has retained and actually utilized a Tax benefit by
reason  of any deduction or withholding for which the Lessee has paid such payee
("Tax  Benefit  Payee"), then the Lessee shall be entitled to a reimbursement of
the  amount by which the Tax Benefit Payee actually benefited and either (i) the
Tax Benefit Payee (if it is a party to this Second Supplemental Indenture) shall
reimburse  to the Lessee the amount of such benefit or (ii) the Lessee may limit
any  future  payments  to  the  Tax  Benefit Payee (if it is not a party to this
Second  Supplemental  Indenture) by the amount of such Tax benefit utilized less
any  amounts  received  by  the  Lessee  from  such  Tax  Benefit  Payee.

Provided  further,  and  notwithstanding  the proviso to Section 4.05, if at any
time  any  applicable  law,  regulation  or  regulatory  requirement  or  any
governmental  authority,  monetary agency or central bank having jurisdiction in
or  over  the United Kingdom (including any taxing authority thereof or therein)
imposes  any  Taxes  on the Trustee or any Note Holder as a result of it being a
party  to  the  Lease  Implementation  Documents  or  their  implementation  or
enforcement,  the Lessee shall indemnify the affected Trustee or Note holder and
hold  it  harmless  against  and promptly on demand pay or reimburse it for such
Tax,  regardless  of whether any Note Holder purchased its Note or Notes through
any  office, branch, place of business, permanent establishment or other taxable
presence  in  the  United  Kingdom,  or  through  any other physical or economic
connection  with  the  United  Kingdom of any kind whether on its own account or
through  any  agency.

     SECTION  4.08.  The  Lessee  represents  and  warrants  that  each  of  the
following  are  true  and  correct  as  of  the  date  hereof:

          (a)  Organization,  Power  and  Authority. The Lessee is a corporation
               ------------------------------------
     duly  organized,  validly  existing  and in good standing under the laws of
     England and Wales, and is duly qualified as a foreign corporation and is in
     good  standing in each jurisdiction in which such qualification is required
     by  law,  other  than  those jurisdictions as to which the failure to be so
     qualified  or in good standing would not, individually or in the aggregate,
     reasonably  be  expected  to have a Material Adverse Effect. The Lessee has
     the corporate power and authority to own or hold under lease the properties
     it  purports  to  own  or  hold  under  lease,  to transact the business it
     transacts  and  proposes  to  transact,  to execute and deliver each of the
     Lease  Implementation  Documents  to which it is a party and to perform the
     provisions  hereof  and  thereof.

          (b)  Authorization.  Each  of  the Lease Implementation Documents have
               -------------
     been  duly  authorized by all necessary corporate action on the part of the
     Lessee,  and each of the Lease Implementation Documents to which the Lessee
     is  a  party constitute a legal, valid and binding obligation of the Lessee
     enforceable against the Lessee in accordance with its terms, except as such
     enforceability  may  be  limited  by (i) applicable bankruptcy, insolvency,
     reorganization,  moratorium or other similar laws affecting the enforcement
     of  creditors'  rights  generally  and  (ii)  general  principles of equity
     (regardless of whether such enforceability is considered in a proceeding in
     equity  or  at  law).

                                       12
<PAGE>
          (c)  Ownership.  The  Lessee is a wholly-owned subsidiary (directly or
               ---------
     indirectly)  of  the  Parent.

          (d)  Compliance  with  Laws,  Other  Instruments,  etc. The execution,
               -------------------------------------------------
     delivery  and  performance  by  the  Lessee  of  the  Lease  Implementation
     Documents  to  which  it  is a party will not (i) contravene, result in any
     breach  of, or constitute a default under, or result in the creation of any
     Lien  in  respect  of  any  property  of  the  Lessee under, any indenture,
     mortgage,  deed  of  trust,  loan,  purchase  or  credit  agreement, lease,
     corporate charter or by-laws, or any other Material agreement or instrument
     to  which  Lessee  is bound or by which the Lessee or any of its respective
     properties  may  be  bound  or  affected, (ii) conflict with or result in a
     breach  of  any  of  the  terms,  conditions  or  provisions  of any order,
     judgment,  decree,  or  ruling  of  any  court,  arbitrator or Governmental
     Authority  applicable  to  the Lessee or (iii) violate any provision of any
     statute  or  other  rule  or  regulation  of  any  Governmental  Authority
     applicable  to  the  Lessee.

          (e)  Governmental  Authorizations,  etc.  No  consent,  approval  or
               ----------------------------------
     authorization  of,  or  registration,  filing  or  declaration  with,  any
     Governmental  Authority  is  required  in  connection  with  the execution,
     delivery  or performance by the Lessee of any Lease Implementation Document
     except for those consents, filing approvals, and authorizations required in
     the  ordinary  course  of  the  operation  of  the  Drilling  Rig.

          (f)  Litigation.  Except as disclosed in the letter dated June 2, 2000
               ----------
     from  the Lessee to the Trustee, there are no actions, suits or proceedings
     pending or, to the knowledge of the Lessee, threatened against or affecting
     the  Lessee  or  any  property  of  the  Lessee  in any court or before any
     arbitrator  of  any  kind  or before or by any Governmental Authority that,
     individually  or  in  the aggregate, would reasonably be expected to have a
     Material  Adverse  Effect.

          (g)  Orders, Judgments and Decrees. The Lessee is not in default under
               -----------------------------
     any  order,  judgment,  decree  or  ruling  of  any  court,  arbitrator  or
     Governmental Authority or is in violation of any applicable law, ordinance,
     rule or regulation (including without limitation Environmental Laws) of any
     Governmental  Authority, which default or violation, individually or in the
     aggregate,  would reasonably be expected to have a Material Adverse Effect.

          (h)  Title  to  Property.  The  Lessee has good and valid title to its
               -------------------
     respective  Material properties free and clear of Liens other than Excepted
     Liens.  All  Material leases are valid and subsisting and are in full force
     and  effect  in  all  Material  respects.  The Lessee owns or possesses all
     licenses, permits, franchises, authorizations, patents, copyrights, service
     marks,  trademarks  and  trade names, or rights thereto, that are Material,
     without  known  conflict  with  the  rights  of  others. The Lessee owns or
     possesses  all  licenses,  permits,  franchises,  authorizations,  patents,
     copyrights,  service  marks, trademarks and trade names, or rights thereto,
     without  any known conflict with the rights of others, necessary to own and
     operate  the  Drilling  Rig  and  perform the SDDI Contract as contemplated
     therein.

                                       13
<PAGE>
          (i)  ERISA.  The  Lessee has no Plan and makes no contributions to any
               -----
     Plan.

          (j)  Debt. The Lessee has no Debt as of the date hereof other than the
               ----
     Debt  created  or  assumed  by  the  Lease  Implementation  Documents.

          (k) Status. Neither the Lessee nor any Affiliate thereof is subject to
              ------
     regulation under the Investment Company Act of 1940, as amended, the Public
     Utility  Holding  Company  Act of 1935, as amended, the Interstate Commerce
     Act,  as  amended,  or  the  Federal  Power  Act,  as  amended.

          (l)  Subsidiaries.  The  Lessee  has  no  Subsidiaries.
               ------------

          (m)  Nature  of  Business. The Lessee is organized for the purpose of,
               --------------------
     among  other things, owning, leasing and operating ships and other offshore
     assets,  but  currently  does  not  own,  lease or occupy under license any
     material  asset  apart from the Drilling Rig and its business premises, nor
     does  it  currently  engage  directly  or indirectly in any other business.

          (n)  Event  of Default. No event has occurred and is continuing and no
               -----------------
     condition  exists  which,  upon  the  execution and delivery of this Second
     Supplemental  Indenture,  would  constitute  an  Indenture  Default  or  an
     Indenture  Event  of  Default with respect to any action of the Lessee. The
     Lessee is not in violation in any respect of any term of its certificate of
     incorporation or bylaws, and the Lessee is not in violation of any material
     term  in any Material agreement or other Material instrument to which it is
     a  party or by which it or any of its Property may be bound. Except for the
     Lease  Implementation  Documents,  there  are  no  Material  agreements  or
     Material  instruments  to which the Lessee is a party or by which it or any
     of  its  Property  is bound. Each representation made or deemed made by the
     Lessee in any Lease Implementation Document or Project Document is true and
     correct.

          (o)  Rig  Classification.  As of the date hereof, the Drilling Rig has
               -------------------
     been classified in the highest class available for rigs of its age and type
     with  the American Bureau of Shipping, free of any material requirements or
     recommendations.

          (p)  Insurance.  As of the date hereof, the Drilling Rig is covered by
               ---------
     the insurance required by Section 2.13 of the First Preferred Ship Mortgage
     and  the  other  Project Documents and such insurance will be in full force
     and effect and all premiums due in respect of such insurance will have been
     paid.

          (q)  Filings. Within 21 days of the date hereof, all filings necessary
               -------
     or  desirable  to  perfect  the Liens and security interests of the Trustee
     under  this  Second  Supplemental  Indenture in the Trust Estate as against
     creditors and purchasers from the Lessee will have been duly made, and this
     Second  Supplemental  Indenture  will  create  a  valid and perfected first
     priority lien and security interest in said Trust Estate, effective against
     creditors  of  and  purchasers  from  the  Lessee, securing all obligations
     secured  thereby.

                                       14
<PAGE>
     SECTION 4.09.  The Lessee will not cause or permit any change to be made in
its  corporate  name  or identity or any change to be made in the address of its
chief  executive  office  or  principal  place  of business (presently being the
address  set  forth for copies to the Lessee in Section 7.04 hereof), unless the
Issuer shall have first notified the Trustee and each Note Holder of such change
at  least  thirty days prior to the effective date of such change and shall have
first  taken  all  action  required  by  the  Trustee for the purpose of further
perfecting  or  protecting  the rights of the Trustee in the Collateral.  In any
notice  furnished  pursuant to this Section 4.09, the Issuer will state that the
notice is required by this Second Supplemental Indenture and contains facts that
may  require  additional  filings  of  financing  statements.

     SECTION  4.10.  The  Lessee  will  not engage directly or indirectly in any
business  or  activity  except  owning and/or operating the Drilling Rig and any
activities  incidental  thereto,  without  the  express  written  consent of the
Trustee  in  its  absolute  discretion.

                                    ARTICLE 5
                           STANDBY PURCHASER COVENANTS
                           ---------------------------

     SECTION  5.01.     Notwithstanding  any  of  the  foregoing consents or any
other  terms  hereof, the Standby Purchaser covenants and agrees that, except as
expressly  permitted by the Deed of Proceeds, it will not assign or transfer its
interest  in  any  Property that is part of the Trust Estate (including, without
limitation, any interest in the SDDI Contract, the Standby Lease or the Drilling
Rig)  to  any  other Person without (i) the prior express written consent of the
Trustee  and  each  of  the  Note  Holders and (ii) prior written notice to each
Rating  Agency.

     SECTION  5.02.      The  Standby Purchaser covenants and agrees that, until
payment  in full of all of the Notes, all interest thereon and all other amounts
payable  under  the  Project  Documents:

          (a)  Litigation.  The  Standby  Purchaser  shall  promptly give to the
               ----------
     Trustee  notice  of  any  material  litigation  or  proceeding  against  or
     adversely  affecting  the Standby Purchaser in which the amount involved is
     not  covered in full by insurance (over and above reasonable deductibles or
     other  self  insured  retentions)  or  in  which  the Standby Purchaser has
     received  notice  from  any  insurer  reserving  its  rights  or contesting
     coverage  under any policy (subject to normal and customary deductibles, or
     in  which  injunctive  or  similar relief is sought). The Standby Purchaser
     will  promptly  notify the Trustee of all claims, judgments, Liens or other
     encumbrances  affecting  any  Property  of  the  Standby  Purchaser  if the
     aggregate  value  of  such  claims,  judgments, Liens or other encumbrances
     affecting  such  Property  shall  exceed  $1,000,000.

          (b)  Maintenance.  The  Standby  Purchaser  shall:  (i)  preserve  and
               -----------
     maintain  its  corporate  existence  and  all  of  its  material  rights,
     privileges,  licenses  and franchises; (ii) keep proper books of record and
     account  in  which  full,  true  and  correct  entries  will be made of all
     dealings or transactions of, or in relation to its business and activities;
     (iii)  comply  with all Governmental Requirements if failure to comply with
     such  requirements  will  have  a Material Adverse Affect; and (iv) pay and
     discharge all Taxes, assessments and governmental charges or levies imposed
     on  it  or  on  its  income or profits or on any of its Property, all trade
     accounts

                                       15
<PAGE>
     payable  in  accordance  with  usual  and  customary business terms and all
     claims  for  work,  labour or materials prior to the date on which any Lien
     (other  than Liens for obligations that have not been outstanding more than
     60  days,  unless  action  has been taken to file or enforce such Liens) or
     penalties  attach  thereto,  except for such Tax, assessment, charge, levy,
     account  payable  or claim, the payment of which is being contested in good
     faith.

     SECTION  5.03.      The  Standby Purchaser covenants and agrees that, until
payment  in full of all of the Notes, all interest thereon and all other amounts
payable  under  the Project Documents, without the prior express written consent
to  the  contrary  from  the  Trustee  and  each  of  the  Note  Holders:

          (a) Debt. The Standby Purchaser will not incur, create, assume, suffer
              ----
     to  exist  or  otherwise  become  liable in respect of any Debt, except the
     Notes,  the  Lease  or  other indebtedness owing to the Trustee or the Note
     Holders  under  the  Project  Documents.

          (b)  Liens:  The  Standby  Purchaser will not create, incur, assume or
               -----
     permit to exist any Lien on the Drilling Rig or any of its other Properties
     now  owned  or  hereafter  acquired),  or  upon income or profits therefrom
     except:

          (i)  Liens  securing  the  payment  of  the  Notes;  and

          (ii) during the period up to but including the Maturity Date, Excepted
     Liens;  and

          (iii)  the  Second  Preferred  Ship  Mortgage.

          (c) Nature of Business. The Standby Purchaser will not engage directly
              ------------------
     or  indirectly  in  any business or activity except owning the Drilling Rig
     and  activities  incidental  thereto  pursuant  to the Lease Implementation
     Documents.

          (d)  Limitation  on  Leases.  The  Standby  Purchaser will not create,
               ----------------------
     incur,  assume or suffer to exist any obligation for the payment of rent or
     hire of Property of any kind whatsoever (real or personal including capital
     leases),  under  leases  or  lease  agreements.

          (e) Mergers, etc. The Standby Purchaser will not merge into or with or
              ------------
     consolidate  with  any other Person, or sell, lease or otherwise dispose of
     (whether  in  one  transaction  or  in  a  series  of  transactions) all or
     substantially  all  of  its  Property  to  any  other  Person other than as
     contemplated  by  the  Deed  of  Proceeds.

          (f)  Sale of Drilling Rig. The Standby Purchaser will not sell, lease,
               --------------------
     charter,  assign, convey, dispose or otherwise transfer the Drilling Rig or
     any interest therein other than in accordance with the Lease Implementation
     Documents  provided,  however,  this  covenant shall not apply to equipment
     appurtenant  to  the  Drilling Rig which is obsolete and no longer required
     for  proper operation of the Drilling Rig or which is replaced by equipment
     of  equal  or  greater  value.

                                       16
<PAGE>
          (g)  Location  of  Standby  Purchaser;  Change  of  Name  of  Standby
               ----------------------------------------------------------------
     Purchaser.  The Standby Purchaser will not cause or permit any change to be
     ---------
     made  in  its  corporate  name  or identity or any change to be made to its
     chief  executive office or principal place of business (presently being the
     address  set  forth  in  Section 7.04 hereof), unless the Standby Purchaser
     shall  have  first notified the Trustee of such change at least thirty days
     prior  to  the effective date of such change and shall have first taken all
     action  required  by  the  Trustee for the purpose of further perfecting or
     protecting the rights of the Trustee in the Standby Purchaser Trust Estate.
     In  any  notice  furnished pursuant to this subsection 5.02(i), the Standby
     Purchaser  will  state  that  the  notice is required by this Indenture and
     contains facts that may require additional filings of financing statements.

          (h)  Acquisition  of  Notes.  The Standby Purchaser will not purchase,
               ----------------------
     redeem,  prepay  or  otherwise  acquire  any  of  the  Outstanding  Notes.

          (i)  Non-Petition  Covenant.  With respect to any CP Conduit that is a
               ----------------------
     Purchaser,  the  Standby  Purchaser  hereby agrees that until the 368th day
     following  the  maturity  of  the last maturing commercial paper note to be
     issued  by  any  such  CP  Conduit  in  connection  with its funding of its
     investment in the Notes, the Standby Purchaser will not institute, and will
     not  join  with  others  in  instituting,  any  involuntary  bankruptcy  or
     analogous  proceeding  against  any  such  CP Conduit under any bankruptcy,
     reorganisation, receivership or similar law, domestic or foreign, as now or
     hereafter  in  effect.

          (j)  Jurisdiction  of  Registration.  The  Standby Purchaser shall not
               ------------------------------
     change  the  jurisdiction  of  registration  of the Drilling Rig to another
     jurisdiction,  unless  the  Standby Purchaser, when directed by the Lessee,
     has  given  the  Trustee  not  less  than 60 days prior written notice, the
     Required  Holders  have  consented (which consent shall not be unreasonably
     withheld)  and the Standby Purchaser has furnished the Trustee and the Note
     Holders  with a new replacement ship mortgage acceptable to the Trustee and
     the  Required  Holders  and  appropriate opinions of counsel, acceptable in
     form  and  substance to the Required Holders, with respect to such mortgage
     and  the  filing  and  first  priority  thereof.

          (k)  Defects,  etc. The Standby Purchaser shall execute such documents
               -------------
     and  instruments  as required to promptly cure any defects in the creation,
     execution  and  delivery  of  any of the Project Documents to which it is a
     party  and  all  such  other  documents,  agreements  (including,  without
     limitation,  account  control agreements) and instruments to comply with or
     accomplish  the  covenants and agreements of the Issuer or the Owner in the
     Project Documents or to further evidence or more fully describe the Standby
     Purchaser  Trust  Estate  or  to  correct  any  omissions  in  the  Project
     Documents,  or  to state more fully the security obligations set out herein
     or  in  any  of  the  other  Project  Documents,  or to perfect, protect or
     preserve  any  Liens  created  pursuant  hereto or any of the other Project
     Documents,  or  to  make  any  recordings  or obtain any consents as may be
     necessary  or  appropriate  in  connection  therewith. Further, the Standby
     Purchaser  will  promptly  execute  and  deliver or cause to be executed or
     delivered all further instruments and documents and take all further action
     that may be necessary or desirable or that the Trustee may request in order
     to  (i) perfect and protect the Liens and other rights created or purported
     to  be  created  hereby  and  by  the other Project Documents and the first
     priority  of  such  Liens  and  other  rights;

                                       17
<PAGE>
     (ii)  enable  the  Trustee  to exercise and enforce its rights and remedies
     hereunder  in  respect  of  the  Collateral;  or (iii) otherwise effect the
     purposes  of  the  Indenture,  including, without limitation: executing and
     filing such supplements to the Indenture and such financing or continuation
     statements (or amendments thereto) as may be necessary or desirable or that
     the  Trustee  may  reasonably  request in order to perfect and preserve the
     Liens  created  or  purported  to  be  created  hereby  or  thereby.

          (l)  Other  Agreements.  The  Standby  Purchaser  shall enter into the
               -----------------
     Standby Lease but shall not agree to any amendments or modifications of the
     terms  thereof  without  express  written  consent  of  the  Trustee.

          (m)  Default  under  Other  Agreements.  The  Standby  Purchaser shall
               ---------------------------------
     provide  prompt  written  notice  to  the  Trustee of any default under the
     Standby  Lease.

     SECTION 5.04.     The Standby Purchaser agrees that it will comply with its
obligations  under  clause 6.1 of the Standby Lease and, in this regard, it will
not  take,  nor be obliged to take, any action (i) which it knows to be contrary
to  the  covenants  and  other  terms and provisions of the Indenture, the First
Preferred  Ship  Mortgage  or  any other Project Document or (ii) which it knows
will  inhibit  the  performance  of  such covenants, terms and provisions by the
Issuer,  Owner,  Lessee  or  otherwise.

     SECTION 5.05. The Standby Purchaser agrees that it will not, otherwise than
pursuant  to  its  rights  under  the  Standby  Lease  (and  then subject to any
restrictions  on  the  exercise  of  those  rights  under the Deed of Proceeds),
interfere with the quiet use, possession and quiet enjoyment of the Drilling Rig
by  SDDI,  the  Issuer,  the  Lessee  or  any  of  its  or  their  Affiliates.

     SECTION 5.06.     The Standby Purchaser represents and warrants that (a) as
of the date hereof, the execution, delivery, performance and enforcement of this
Second  Supplemental  Indenture or any of the documents referred to herein or in
the  whereas clauses hereto will not: (i) subject the Trustee or any Note Holder
to  any  Tax  imposed  by  the Cayman Islands or any taxing authority thereof or
therein;  (ii) require that the Trustee or any Note Holder qualify, or otherwise
become  subject  to regulation, under any law, rule, regulation or decree of the
Cayman  Islands  or  any  governmental authority thereof or therein and (b) this
Second  Supplemental Indenture and the other documents referred to herein and in
the whereas clauses hereto are in proper form for the enforcement thereof in the
Cayman Islands and that in order to enforce the same in the Cayman Islands it is
not  necessary  that any Tax be paid or registration or other formality complied
with.

     SECTION  5.07.  The Standby Purchaser agrees that it will not take title to
the  Drilling  Rig  (including, without limitation, taking title pursuant to the
Put-Option  Agreement  or  the  Hire  Purchase  Agreement)  unless  the  Standby
Purchaser  complies  with  the  relevant  provisions  under the Deed of Proceeds
including,  without  limitation,  the  provisions  of  clause  5.3  thereof.

     SECTION  5.08.     The Standby Purchaser represents and warrants that it is
not  a  Subsidiary  or an Affiliate of the Parent, Issuer, Owner, Lessor, Lessor
Parent,  Lessee  or any Subsidiary or Affiliate of the foregoing (the "Principal
Parties")  and  will  not  become  a Subsidiary or an Affiliate of any Principal
Party.  The  Standby  Purchaser  will  act  solely in its own corporate name and
through  its

                                       18
<PAGE>
own  offices and agents and at all times hold itself out to the public under its
own  name  as  a  legal  entity  separate  and  distinct from any and all of the
Principal  Parties.

                                    ARTICLE 6
                                    ---------

                              ADDITIONAL COVENANTS
                              --------------------

     SECTION  6.01.     Owner  agrees  to  take  appropriate  action  as soon as
practicable  after  December  31,  2000, but in no event later than February 28,
2001, at the sole cost and expense of the Issuer, as required to transfer all of
its  right, title and interest in the Drilling Rig to a third party, which shall
be  an Affiliate of the Owner ("Transferee"), which Transferee will enter into a
supplement  to  the Indenture pursuant to which the Transferee grants a security
interest similar to the security interest granted by the Independent Owner under
the Supplemental Indenture and covenants similar to the covenants granted by the
Independent  Owner  under  the  Supplemental  Indenture together with a covenant
similar to Section 8.13 (except to the extent Section 8.13 relates to preserving
the form of the Transferee as a corporation, such covenant shall be broadened to
allow  the  Transferee to be a corporation, an owner trust, statutory trust or a
limited  liability  company)  of  the  Indenture and otherwise being in form and
substance  satisfactory  to  the  Required Holders; provided that, in connection
with  such  transfer,  (a)  the  Issuer  shall  assist  the  Owner  in providing
additional  documentation required in connection with such transfer and (b) such
transfer  shall  not  be effected unless and until the Trustee is furnished with
the  following, in form and substance satisfactory to the Trustee and the Rating
Agencies:

     (i)    an  assumption  of  the  First Preferred  Ship  Mortgage  or  the
     execution  and  delivery  of  a  new mortgage executed by the Transferee in
     substantially  the  same  form  as  the  First  Preferred  Ship  Mortgage,

     (ii)   an  amendment  to  the  Indenture  pursuant to which the Transferee
     grants to the Trustee a security interest in the Equipment on substantially
     the  same  terms  as  the  security interest granted by the Owner under the
     Indenture  together  with  appropriate  financing  statements  to  properly
     perfect  such  security  interest,

     (iii)  appropriate  UCC  searches  establishing  that the security interest
     granted  under  (ii)  above  is  first  priority,

     (iv)   opinions  of  counsel from the Issuer and Transferee satisfactory to
     the  Trustee and the Rating Agencies with respect to the documents provided
     under  clauses (i) and (ii) above, including, without limitation, the first
     priority  of  the  assumption  of  the First Preferred Ship Mortgage or new
     mortgage,  as  applicable,  and

     (v)    a  certificate  or  certificates  from appropriate insurance brokers
     that  all  required  insurance  remains  in  full force and effect with the
     Transferee  as  the  new  owner  of  the  Drilling  Rig  and  Equipment.

                                       19
<PAGE>
     In  connection  with  the  foregoing,  the  Owner  shall not be required to
provide  representations,  opinions and certificates broader in scope or content
than  those  previously  provided  by  the  Owner  pursuant  to the Supplemental
Indenture  and  this  Second  Supplemental  Indenture.

     SECTION  6.02.  The  Trustee  shall establish an account styled "R&B Falcon
Deepwater  (UK)  Limited  Collection  Account" (the "Lessee Collection Account")
subject  to  the Trustee's sole dominion and control into which (a) any payments
or  proceeds  paid or payable under the SDDI Contract will be directed according
to  Section  6.03  hereof and the Indenture and (b) into which any proceeds (but
excluding,  for  the avoidance of doubt, proceeds of Lessee Excepted Properties)
directed  to  the  Lessee  pursuant  to  the  Deed  of Proceeds will be directed
according  to  such  Deed  of  Proceeds.

     SECTION  6.03.     The  Trustee  shall  apply  and transfer immediately any
amounts in the Lessee Collection Account to the Collection Account to be applied
as  required  pursuant  to  Section  5.1  and  Section  5.3  of  the  Indenture.

     SECTION  6.04.     Each  Note  Holder,  by  execution and delivery of their
written  consent to this Second Supplemental Indenture and the Deed of Proceeds,
agrees  to  sell  such  Note Holder's Note pursuant to the buy-out provisions of
clause  10.2  of  the  Deed  of  Proceeds.

                                    ARTICLE 7
                                    ---------

                 AMENDMENTS TO INDENTURE/SUPPLEMENTAL INDENTURE
                 ----------------------------------------------

     SECTION  7.01.     (a)  Section  1.1  of the Indenture is hereby amended by
adding  the  following  new  definitions where alphabetically appropriate, which
read  in  their  entirety  as  follows:

          Assumption  Documents  shall  have the meaning ascribed thereto in the
          ---------------------
     recitals  to  the  Second  Supplemental  Indenture.

          Counterparty Payment Agreement shall have the meaning ascribed thereto
          ------------------------------
     in  the  recitals  to  the  Second  Supplemental  Indenture.

          Credit  Agreement  shall  have  the  meaning  ascribed  thereto in the
          -----------------
     recitals  to  the  Second  Supplement  Indenture.

          Debenture  shall  have the meaning ascribed thereto in the recitals to
          ---------
     the  Second  Supplemental  Indenture.

          Deposit  Agreement  shall  have  the  meaning  ascribed thereto in the
          ------------------
     recitals  to  the  Second  Supplemental  Indenture.

          Hire Purchase Agreement shall have the meaning ascribed thereto in the
          -----------------------
     recitals  to  the  Second  Supplemental  Indenture.

                                       20
<PAGE>
          Lease  shall  have the meaning ascribed thereto in the recitals to the
          -----
     Second  Supplemental  Indenture.

          Lease  Implementation  Documents  shall  mean this Second Supplemental
          --------------------------------
     Indenture  and  each  of  the  other documents listed on Schedule 1 hereto.

          Lessee  shall  mean  R&B  Falcon  Deepwater  (UK)  Limited,  a company
          ------
     incorporated  in  England  and  Wales.

          Lessee  Account  shall  mean  the Lessee Account defined in the Lessee
          ---------------
     Account  Assignment  dated  June  2,  2000  from  the  Lessee to the Lessor
     pursuant  to  which  the  Lessee  may  deposit  Lessee Excepted Properties.

          Lessee  Collection  Account shall have the meaning ascribed thereto in
          ---------------------------
     Section  6.02  of  the  Second  Supplemental  Indenture.

          Lessee  Documents  shall  mean  the  Lease  and  the  Standby  Lease.
          -----------------

          Lessee Excepted Properties shall mean all of the Lessee's right, title
          --------------------------
     and  interest  in, to and under the following Properties whether now owned,
     existing  or  hereafter  acquired  or  arising:

               (i)  all  monies  received  by the Lessee pursuant to Section 5.1
          seventh and Section 5.3 eighth of the Indenture which are deposited or
          -------                 ------
          placed  in  the  Lessee  Account  or  otherwise  used for securing the
          obligations  of  the Lessee to the Lessor pursuant to clause 25 of the
          Lease;  and

               (ii)  all  monies  deposited in the Lessee Account, or any sub or
          replacement account, pursuant to payments made by Commerzbank AG under
          the  Assumption  Documents.

          Lessee  Related Taxes shall mean those Taxes which would not otherwise
          ---------------------
     have  arisen  but for the implementation of the lease arrangements, imposed
     as a direct or indirect consequence of the Lessee being involved as a party
     to  the Project Documents or the transactions contemplated thereby or being
     a  party to the Lease Implementation Documents or as a result of the Lessee
     or  any  other  person  having  to  make or receive a payment through or in
     connection  with  the  Lease  Implementation  Documents.

          Lessor  shall have the meaning ascribed thereto in the recitals to the
          ------
     Second  Supplemental  Indenture.

          Lessor  Parent  shall  mean  Alliance  &  Leicester  plc.
          --------------

          Liquidity  Costs  shall  mean,  collectively, the amount of any Unpaid
          ----------------
     Drawings,  and

                                       21
<PAGE>
     unpaid  interest,  costs, expenses, liabilities or other amounts due to the
     Liquidity  Provider  (Swiss  Re)  under  the  Credit  Agreement.

          Liquidity  Provider (Swiss Re) shall have the meaning ascribed thereto
          ------------------------------
     in  the  recitals  to  the  Second  Supplemental  Indenture.

          Owner  Bankruptcy Event shall have the meaning ascribed thereto in the
          -----------------------
     Credit  Agreement.

          Put-Option  Agreement  shall  have the meaning ascribed thereto in the
          ---------------------
     Second  Supplemental  Indenture.

          RBF  Parties  means each of the Lessee, Issuer, RBF II and the Parent.
          ------------

          Reimbursement Agreement shall have the meaning ascribed thereto in the
          -----------------------
     recitals  to  the  Second  Supplemental  Indenture.

          Risk  Transfer  Agreement  shall  have the meaning ascribed thereto in
          -------------------------
     Section  10.07  of  the  Second  Supplemental  Indenture.

          Second  Priority Assignment shall mean the assignments from the Issuer
          ---------------------------
     and  the  Lessee  in  favor  of  the Lessor in the form of Exhibits H and I
     hereto.

          Second  Supplemental  Indenture  shall  mean  that  certain  Second
          -------------------------------
     Supplemental  Indenture and Amendment dated as of June 2, 2000, executed by
     the  Issuer,  the Owner, the Standby Purchaser, the Lessee and the Trustee.

          Standby  Lease shall have the meaning ascribed thereto in the recitals
          --------------
     to  the  Second  Supplemental  Indenture.

          Standby  Purchaser  shall mean Nautilus Exploration Limited, a company
          ------------------
     incorporated  in  the  Cayman  Islands.

          Standby  Purchaser  Documents  shall  mean  the  Standby  Lease.
          -----------------------------

          Standby  Purchaser Excepted Properties shall mean the share capital of
          --------------------------------------
     the  Standby  Purchaser.

          Tax  shall  have  the  meaning  ascribed  thereto in the Operation and
          ---
     Maintenance  Agreement.

          Transfer  Agreement  shall  have  the  meaning ascribed thereto in the
          -------------------
     recitals  to  the  Second  Supplemental  Indenture.

          Unpaid  Drawings shall have the meaning ascribed thereto in the Credit
          ----------------
     Agreement.

                                       22
<PAGE>
          (b)  The  definition  of  "Credit  Support  Party"  shall be deemed to
     include  the  Liquidity  Provider (Swiss Re) (as defined in the recitals to
     the  Second  Supplemental  Indenture).

          (c)  The definition of "First Preferred Ship Mortgage" shall be deemed
     to  include  the Amendment to First Mortgage (as defined in the recitals to
     the  Second  Supplemental  Indenture).

          (d) The definition of "Operation and Maintenance Agreement" is amended
     by  the  addition at the end of such definition of the words "as terminated
     and  replaced by that certain new Operation and Maintenance Agreement dated
     June  2,  2000  and  as  the  same  may be further amended, supplemented or
     modified  from  time  to  time."

          (e)  The  definition  of  "Project  Document" is amended by adding the
     phrase  "each  of the Lease Implementation Documents" after the phrase "(as
     defined  in  the  Note  Purchase  Agreement),".

          (f)  The  definition of "SDDI Contract" shall be deemed to include the
     SDDI  Contract  as  transferred  and  amended  by  the  Transfer Agreement.

          (g) The definition of Transaction Documents is amended by including in
     the  definition  thereof,  each  of  the  Lease  Implementation  Documents.

     Section  7.02.     Clauses  (b),  (j),  (n)  and  (q) of Section 7.1 of the
Indenture are hereby amended respectively to hereafter read in their entirety as
follows:

          "(b) any representation, warranty or certification at any time made or
     deemed  made herein or in any other Project Document by the Issuer, Parent,
     Owner, Lessee, Standby Purchaser or Lessor, or any certificate furnished to
     any  Purchaser  or  other holder of any Note or the Trustee pursuant to the
     provisions  hereof  or any other Project Document, shall prove to have been
     false  or  misleading  as  of  the  time  made or furnished in any material
     respect;  or"

          "(j)  Parent,  SDDI,  Royal  Dutch Shell, RBF II, Owner (but only with
     respect  to  (d),  (e)  or  (f)),  Sovereign,  Lessor  Parent,  the Standby
     Purchaser  (at  any time that Sovereign or the Standby Purchaser is a party
     to  the  Hire  Purchase  Agreement or has title to the Drilling Rig) or the
     Lessee  or,  prior  to  satisfaction  of  the Operational Period Conditions
     Precedent,  one  of  the  Sureties, takes, suffers or permits to exist with
     respect  to  itself any of the events or conditions of the type referred to
     in  paragraphs  (d),  (e),  (f)  or  (i)  hereof;  or"

          "(n)  the  Issuer  or  the  Lessee  shall  cease  to  be  a 100% owned
     Subsidiary  of  the  Parent,  directly  or  indirectly;  or"

          "(q)  Any  default  occurs  in the covenants or obligations of the (i)
     Owner  under the Supplemental Indenture, the Second Supplemental Indenture,
     the  First  Preferred Ship

                                       23
<PAGE>
     Mortgage  or  the  Deed of Proceeds or (ii) Standby Purchaser or the Lessee
     under  the  Second  Supplemental  Indenture,  the Deed of Proceeds or, with
     respect  to the Standby Purchaser, any other Standby Purchaser Document or,
     with  respect  to  the Lessee, any other Lessee Document (iii) Lessor under
     the  Deed  of Proceeds or (iv) the Trustee receives a notice from the Owner
     pursuant  to  the second sentence of Section 4.02(a)(E) of the Supplemental
     Indenture; and, for the avoidance of doubt, the occurrence and continuation
     of  a  Termination  Event under the Lease shall not of itself constitute an
     Indenture Event of Default unless the event or condition giving rise to the
     Termination  Event  is  also stated to be a default under this Indenture or
     such  Termination  Event  creates  an  Indenture Event of Default under the
     Indenture."

     SECTION  7.04.     Section  13.3  of the Indenture is amended by adding the
following  notice  provision  following  the  mail  address  of  the  Owner:

     If  to  the  Standby  Purchaser:

     If  by  mail:
     Nautilus  Exploration  Limited
     Ugland  House
     P.O.  Box  309
     George  Town
     Grand  Cayman
     Cayman  Islands
     Facsimile:  001  345  949  8080
     Attention:  Joanna  Lawrence

     With  a  copy  to:

     HSBC  House
     PO  Box  1109  GT
     Grand  Cayman
     Cayman  Islands
     Facsimile:  001  345  949  7634
     Attention:  The  Directors

     If  to  the  Lessee:

     If  by  mail:
     R&B  Falcon  Deepwater  (UK)  Limited
     c/o   R&B  Falcon  Corporation
     901  Threadneedle,  Suite  200
     Houston,  Texas  77079  U.S.A.
     Facsimile:  (281)  496-0285
     Attention:  Chief  Financial  Officer

     With  copy  to:

                                       24
<PAGE>
     R&B  Falcon  Deepwater  (UK)  Limited
     Stoneywood  Office  Complex,  Suite  E
     Stoneywood  Park  North
     Dyce
     Aberdeen  AB21  7EA
     Scotland
     Facsimile  No.:  011-44-1224-723-444

     Attention:  Doug  Halkett,  Director

     SECTION  7.05.     Section  4.3  of  the  Indenture  is  hereby  amended by
inserting  immediately  after the phrase "and all payments under the Performance
Bond"  the  phrase  ",  any excess amount in the Payment Reserve Account that is
transferred  to  the  Collection Account in accordance with Section 5.4 hereof".

     SECTION 7.06.     Article 4 of the Indenture is hereby amended by inserting
the  following  new  Section  4.4:

         4.4  Liquidity  Shortfall  Account
              -----------------------------

          The  Trustee  shall establish an account styled "Note Holder Liquidity
     Shortfall  Account"  (the  "Liquidity  Shortfall  Account")  subject to the
                                 -----------------------------
     Trustee's  sole  dominion  and  control. During the continuance of an Owner
     Bankruptcy  Event,  (a)  at  least  three  (3)  Business Days prior to each
     Payment  Date,  the  Trustee  shall  determine  the  amount  ("Liquidity
                                                                    ---------
     Shortfall"),  if  any,  by  which  (i)  the  amount of interest due on such
     ---------
     Payment  Date  for  all  of  the Notes ("Interest Amount") exceeds (ii) the
                                              ---------------
     amount  of  funds  available in both the Collection Account and the Payment
     Reserve  Account  to  cover  such  Interest  Amount  and (b), if there is a
     Liquidity  Shortfall,  the  Trustee shall (1) give notice to the Issuer and
     each  Note  Holder  of  the necessity to request a Drawing (as such term is
     defined  in  the  Credit Agreement) under the Credit Agreement to cover the
     Liquidity  Shortfall  and (2), upon evidence satisfactory to the Trustee of
     each  of  the  certifications required under the Notice of Drawing (as such
     term is defined in the Credit Agreement), promptly deliver to the Liquidity
     Provider  (Swiss  Re)  on  behalf of the Note Holders a completed Notice of
     Drawing  requesting  the  lesser of the (x) Liquidity Shortfall and (y) the
     Available Commitment (as such term is defined in the Credit Agreement). The
     Trustee  shall  deposit  into  the  Liquidity  Shortfall  Account any funds
     received  from  the  Liquidity  Provider (Swiss Re) pursuant to any Drawing
     and,  promptly  thereafter,  the  Trustee shall transfer from the Liquidity
     Shortfall  Account  to  each respective Note Holder, such Note Holder's pro
     rata  share  of  the Drawing based upon that portion of the Interest Amount
     allocable  to  such  Note  Holder.

                                       25
<PAGE>
     SECTION  7.07.     Section  5.1(a)  second  is  hereby amended by inserting
                                         ------
immediately prior to the phrase "the accrued unpaid interest" the phrase "in the
following  order  of  priority,  first  to  the amount required to reimburse any
Liquidity  Costs  to  the  Liquidity  Provider  (Swiss  Re)  and  second,"

     SECTION  7.08.     Section  5.3  second  is  hereby  amended  by  inserting
                                      ------
immediately  prior  to  the  phrase  "so much of such monies" the phrase "in the
following  order  of  priority,  first  to  the amount required to reimburse any
Liquidity  Costs  to  the  Liquidity  Provider  (Swiss  Re)  and  second,"

     SECTION  7.09.     Section  5.1(a)  seventh  and  Section 5.3 eighth of the
                                         -------                   ------
Indenture  are  each  hereby amended by replacing the phrase "distributed to the
Issuer  or its assigns." with "distributed to the Lessee, or as the Lessee shall
otherwise  direct the Trustee in writing, or to the Lessee's assigns, for use in
their  absolute  discretion."

     SECTION  7.10.     Section  5.4  of  the  Indenture  is  hereby  amended by
inserting  immediately  after the phrase "shall be charged against the principal
amount  invested"  the  phrase

          ;  except  that,  if  there is income realized as a result of any such
          Permitted  Investments  of amounts held in the Payment Reserve Account
          and  such  income  causes the amount in the Payment Reserve Account to
          exceed  the  Phase  Two  Reserve  Amount (as determined by the Trustee
          three  (3)  Business  Days  prior to any given Payment Date), then the
          Trustee  shall  cause  such  excess  amount  to  be transferred to the
          Collection  Account

     SECTION  7.11.     Article  8  of the Indenture is hereby amended by adding
the  following  new  Section  8.16:

     "8.16     Tax  Indemnity.  If at any time any applicable law, regulation or
               --------------
regulatory requirement or any governmental authority, monetary agency or central
bank  requires any deduction or withholding in respect of Taxes from any payment
due  hereunder  or  under  any  of the other Project Documents the Issuer shall:

          (a)  if  the payment is to be made by the Issuer, increase the payment
     in  respect of which the deduction or withholding is required to the extent
     necessary  to  ensure  that,  after  the  making  of  such  deduction  or
     withholding,  the payee receives on the due date for such payment a net sum
     equal  to  the  sum  which  it would have received had no such deduction or
     withholding  been  required  to  be  made;

          (b)  if the payment is to be made by any person other than the Issuer,
     pay  directly  to the payee such sum as will, after taking into account any
     deduction  or  withholding  which is required to be made in respect of such
     sum,  enable  the  payee  to  receive on the due date for payment a net sum
     equal  to the sum which the payee would have received in the absence of any
     obligation  to  make  a  deduction  or  withholding;

          (c)  pay  to  the  relevant  authority  within  the period for payment
     permitted by applicable law the full amount of the deduction or withholding
     (including,  but  without

                                       26
<PAGE>
     prejudice  to  the  generality  of  the  foregoing,  the full amount of any
     deduction  or  withholding  from any increased amount paid pursuant to this
     Section  8.16);  and

          (d)  furnish  to  the payee within the period for payment permitted by
     applicable  law,  appropriate  receipts  evidencing payment to the relevant
     authority  of  all  amounts  deducted  or  withheld  as  aforesaid."

     SECTION  7.12.     Section  9.2  of  the  Indenture  is amended by changing
subsection  (b) to subsection (c) and inserting a new subsection (b) as follows:

          (b) the Second Preferred Ship Mortgage, the charge against the Deposit
     pursuant  to  clause  3  of  the  Deposit Agreement and the Second Priority
     Assignments;  and

     SECTION  7.13.     Section  13.17(b)  of the Indenture is hereby amended by
inserting  the following phrase "the Liquidity Provider (Swiss Re)," immediately
after  the  first  occurrence  of  "Note  Holder,"

     SECTION  7.14.     The  first  paragraph  of  the  Granting  Clause  of the
Indenture  is hereby amended by inserting immediately after the first occurrence
of  the  phrase  "under  all  other  Project  Documents" the phrase "(including,
without  limitation,  the  obligations  of the Trustee under Section 2.05 of the
Credit  Agreement)".  Section  (b)  of  the  Granting Clause of the Indenture is
hereby  amended  by replacing "Refundment Guarantee" with "Refundment Guarantee,
Risk  Transfer  Agreement,  the  Assumption  Documents".

     SECTION  7.15.     Section  3.01  of  the  Supplemental Indenture is hereby
amended by inserting immediately after the first occurrence of the phrase "under
all  other  Project  Documents"  the phrase "(including, without limitation, the
obligations  of  the  Trustee  under  Section  2.05  of  the Credit Agreement)".

     SECTION  7.16.     Section  3.01(b) of the Supplemental Indenture is hereby
amended  by  replacing  the  phrase  "such  indemnity  and  the  New Performance
Guarantee"  with  "such indemnity, the New Performance Guarantee and Article VII
of  the  Operation  and  Maintenance  Agreement".

                                    ARTICLE 8

                           CONDITIONS TO EFFECTIVENESS
                           ---------------------------

     SECTION  8.01.  This  Second  Supplemental Indenture shall become effective
upon  the  date (the "Effective Date") that is the latter of (a) the date of its
execution  and delivery by each of the Issuer, the Owner, the Standby Purchaser,
the  Lessee  and  the  Trustee  and  (b)  the  date  that  each of the following
conditions  (with  each  document  referenced  being  in  form  and  substance
satisfactory  to  the  Trustee)  have  been  completed:

     (a)    each  of  the  Lease Implementation Documents have been executed and
     delivered  by  all  parties thereto and are effective pursuant to the terms
     thereof;

                                       27
<PAGE>
     (b)    the  Commencement  Date  has  occurred;

     (c)    the  representations  and  warranties set out in Section 4.08 hereof
     are true  and  correct  in  all  material  respects;

     (d)    each  of  the  RBF  Parties,  the  Owner, the Lessee and the Standby
     Purchaser  shall  have performed and complied with and shall continue to be
     in  compliance  with all of the Project Documents to which each is a party;

     (g)    all  necessary  or appropriate financing statements and other filing
     and  recording  documents  necessary  to  properly  perfect  the  liens and
     security  interests  evidenced by the Indenture and each of the other Lease
     Implementation  Documents  which  grants  a  lien,  security  interest  or
     assignment  in  favor of the Trustee shall have been executed and delivered
     to  the  Trustee;

     (h)    opinions  of  counsel  from  each  of  Gardere Wynne Sewell & Riggs,
     L.L.P.,  Watson Farley & Williams, Norton Rose, Jackson Walker, LLP, Maples
     &  Calder  Europe and Dewey Ballantine LLP shall have been delivered to the
     Note  Holders,  the  Liquidity  Provider  (Swiss  Re)  and the Trustee; and

     (i)    the  Issuer  shall  have  paid  the  reasonable  fees,  charges  and
     disbursements  of special counsel to each of the Class A1 Note Holders, the
     Class  A2  Note  Holders,  Credit  Support  Parties  (including,  without
     limitation, counsel to the Liquidity Provider (Swiss Re)), the Trustee, the
     Proceeds  Account  Bank and of special United Kingdom Counsel to all of the
     Class  A1  Note  Holders,  the  Class  A2  Note  Holders and Credit Support
     Parties;  provided that such fees are reflected in a statement of each such
     counsel  rendered to the Issuer at least one Business Day prior to the date
     hereof.

                                    ARTICLE 9

                          CERTAIN ADDITIONAL AGREEMENTS
                          -----------------------------

     SECTION  9.01.     Nothing  in  Article  4 or 5 or elsewhere in this Second
Supplemental  Indenture or any of the other Lease Implementation Documents shall
relieve the Issuer from any of the covenants and obligations of the Issuer under
and  pursuant  to  the  Indenture  as  amended  and  supplemented  hereby  and
notwithstanding  the  ownership of the Drilling Rig by the Owner, Sovereign, the
Standby  Purchaser  or  any  other  Party,  Sovereign's Lease to the Lessee, the
Put-Option  Agreement or the Standby Lease, the Issuer remains fully responsible
and  liable  (including,  without  limitation,  as  if  it  was the owner of the
Drilling  Rig)  for  the  performance  and  compliance  with  all  covenants and
obligations of the Issuer under the Indenture as amended and supplemented hereby
and  the First Preferred Ship Mortgage. Further, the Issuer hereby covenants and
agrees  to  perform,  or  cause  to  be performed, all of the obligations of the
Owner,  the Lessee and the Standby Purchaser under the Indenture as supplemented
and  amended  hereby,  the  First  Preferred  Ship  Mortgage and under all other
Transaction  Documents or Project Documents. Notwithstanding the foregoing, with

                                       28
<PAGE>
respect to Section 6.01 of the Supplemental Indenture there shall be no Assuming
Party  with  respect  to  the  Hire Purchase Agreement.  Accordingly, the Issuer
shall  be  the Assuming Party with respect to all Project Documents to which the
Owner  is  a  party,  except  for  the  Hire Purchase Agreement and the Sale and
Funding  Agreement,  and  the  term  Assumed  Obligations  shall  be  construed
accordingly.

     SECTION  9.02.     For  all  purposes of the Indenture, the Owner shall not
be  responsible  for any act or omission of the Lessor or the Lessee under or in
connection with the Lease, as the same relates to the Drilling Rig or otherwise;
provided  that,  such  limitation  shall  not limit the Owner's responsibilities
under  the  Indenture  and  under  the Project Documents to which the Owner is a
party  and  the  Indenture  taken  as  a  whole.

     SECTION  9.03.     The  Trustee agrees that upon a transfer of title to the
Drilling  Rig  from  the Owner to a third party in compliance with the terms and
conditions  of  the  Indenture  the  Trustee  (at  the expense of the Issuer and
Lessee)  shall promptly execute and deliver to the Owner such instruments as may
be  sufficient  to  release and discharge the Owner from its obligations created
under  the  First  Preferred  Ship  Mortgage,  the Supplemental Indenture or the
Second  Supplemental  Indenture;  provided, however, that during such period, if
any,  as  the  First  Preferred  Ship  Mortgage  and  the  liens  created by the
Supplemental  Indenture  and/or  the  Second  Supplemental Indenture continue in
effect  but  have  not  been  assumed  by the Transferee, such pledge, liens and
assignment,  the  lien  of  the  First  Preferred  Ship Mortgage and the Owner's
non-recourse obligation under Section 4.05 of the Supplemental Indenture (but no
other  obligation,  covenant  or  undertaking  of  the  Owner  contained  in the
Supplemental  Indenture  or the First Preferred Ship Mortgage) shall continue in
effect.

     SECTION  9.04.     The  Trustee agrees that any right, title or interest of
the  Trustee  in  and  to  any  Deposit  (as such term is defined in the Deposit
Agreement)  made  by  or  on  behalf  of the Issuer pursuant to the terms of the
Deposit  Agreement  (a)  shall be second, subordinate and inferior to any right,
title  or  interest of Commerzbank AG to such Deposit, unless any portion of any
such  Deposit  is  derived  from or pursuant to that portion of the Trust Estate
which  the  Issuer  is  not  entitled  to  receive  pursuant to Article 5 of the
Indenture,  in  which case the right, title or interest of the Trustee in and to
such portion of the Deposit so derived shall not be subject to this Section 9.04
and  (b),  with  respect  to  any  such  Deposit, the Issuer shall have absolute
discretion  in  its  use  of  such  Deposit.

     SECTION  9.05.     Except  as provided in Section 11.1 of the Indenture and
in  accordance  with  Section 6.01(b) of the Credit Agreement, the Trustee shall
neither amend, modify or supplement any Project Document to which the Trustee is
a  party  nor  consent  to the amendment, modification or supplementation of any
other  Project  Document  without  the  express written consent of the Liquidity
Provider  (Swiss  Re).

     SECTION  9.06.     The  Issuer or the Lessee, as appropriate, shall name or
cause  to  be  named  the Liquidity Provider (Swiss Re) as an additional insured
under  all liability insurance policies maintained pursuant to the provisions of
the  Project  Documents.

     SECTION  9.07.     The  Lessee  agrees  that  it  will  terminate the Lease
(pursuant  to  clause 3.3(a) thereof) if Alliance & Leicester Group Treasury plc
is  not  replaced  in  its capacity as Proceeds

                                       29
<PAGE>
Account  Bank  by July 14, 2000 in accordance with the provisions of the Deed of
Proceeds.

                                   ARTICLE 10

                            MISCELLANEOUS PROVISIONS
                            ------------------------

     SECTION  10.01.  Except  as  expressly amended and supplemented hereby, the
Indenture  is  in  all  respects  ratified  and  confirmed  and  all  the terms,
conditions  and  provisions  thereof shall remain in full force and effect. This
Second  Supplemental  Indenture  shall  form  a  part  of  the Indenture for all
purposes,  and  every  Note  Holder  heretofore  or  hereafter authenticated and
delivered under the Indenture shall be bound hereby and all terms and conditions
of  the  Indenture  as  amended by the Supplemental Indenture and by this Second
Supplemental Indenture shall be read together as though they constitute a single
instrument.

     SECTION  10.02.  Except  as otherwise expressly provided herein, no duties,
responsibilities  or  liabilities  are  assumed,  or  shall  be  construed to be
assumed,  by  the  Trustee by reason of this Second Supplemental Indenture. This
Second Supplemental Indenture is executed and accepted by the Trustee subject to
all  the terms and conditions set forth in the Indenture with the same force and
effect  as if those terms and conditions were repeated at length herein and made
applicable  to  the  Trustee  with  respect  hereto.

     SECTION  10.03. THE GOVERNING LAW AND SUBMISSION TO JURISDICTION PROVISIONS
OF  THE  INDENTURE,  INCLUDING BUT NOT LIMITED TO THE APPLICATION OF THE LAWS OF
THE  STATE  OF  NEW  YORK, SHALL ALSO GOVERN AND BE USED TO CONSTRUE AND ENFORCE
THIS  SECOND  SUPPLEMENTAL  INDENTURE.  For  this  purpose  the term "Issuer" in
Sections  13.4(b),  13.4(d)  and  13.4(e)  of  the  Indenture shall be deemed to
include  the  Owner,  the  Standby  Purchaser  and  the  Lessee.

     SECTION  10.04.  THE LESSEE HEREBY IRREVOCABLY DESIGNATES CAPITOL SERVICES,
INC.  LOCATED  AT  401  COLVIN  STREET, SUITE 200, ALBANY, NEW YORK 12206 AS THE
DESIGNEE, APPOINTEE AND AGENT OF THE LESSEE TO RECEIVE, FOR AND ON BEHALF OF THE
LESSEE,  SERVICE  OF  PROCESS  IN  SUCH  JURISDICTION  IN  ANY  LEGAL  ACTION OR
PROCEEDING  WITH  RESPECT TO THE PROJECT DOCUMENTS. IT IS UNDERSTOOD THAT A COPY
OF  SUCH  PROCESS  SERVED  ON SUCH AGENT WILL BE PROMPTLY FORWARDED BY OVERNIGHT
COURIER  TO  THE LESSEE AT ITS ADDRESS SET FORTH IN SECTION 7.04 HEREOF, BUT THE
FAILURE  OF  THE  LESSEE  TO  RECEIVE  SUCH COPY SHALL NOT AFFECT IN ANY WAY THE
SERVICE  OF SUCH PROCESS. THE LESSEE FURTHER IRREVOCABLY CONSENTS TO THE SERVICE
OF  PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING
BY  THE  MAILING  OF  COPIES  THEREOF  BY  REGISTERED OR CERTIFIED MAIL, POSTAGE
PREPAID,  TO  THE  LESSEE  AT ITS SAID ADDRESS, SUCH SERVICE TO BECOME EFFECTIVE
THIRTY  DAYS  AFTER  SUCH  MAILING.

                                       30
<PAGE>
     SECTION  10.05. The Issuer and the Owner recognize and acknowledge that the
Put  Option  is  terminated.

     SECTION  10.06.  The Issuer represents, warrants and reaffirms that each of
the  representations  and warranties contained in Article 5 of the Note Purchase
Agreements  were  correct  in  all  material  respects  as  of  the  date  such
representations  and  warranties  were  made  and  are  correct  in all material
respects  as  of  the  date  hereof.

     SECTION  10.07.  With  respect  to  that  certain  Risk  Transfer Agreement
between  the  Issuer  and  the  Lessee  dated  June  2,  2000  ("Risk  Transfer
Agreement"),  the  Issuer  and the Lessee understand and agree that the payments
under  clauses  2.2  and 2.3 thereunder of the Lease Payments (as defined in the
Risk  Transfer  Agreement)  and  the  Lease  Receivables (as defined in the Risk
Transfer  Agreement)  are  subject  to  the  prior  security  interests,  liens,
assignments and rights of the Trustee to the revenues from the SDDI Contract and
to  all  other  assets of the Lessee as provided under the Indenture, under that
certain new Assignment of Drilling Contract to be granted from the Lessee to the
Trustee  in  the  form  of Exhibit J ("New Assignment of Drilling Contract") and
under  the  Debenture.

     SECTION  10.08. All rights of the Trustee and security interests hereunder,
and  all  obligations of each of the Lessee and the Standby Purchaser hereunder,
shall  be  absolute  and  unconditional  irrespective  of:

     (a)  any lack of validity or enforceability of any of the Project Documents
or  any  other  agreement or instrument relating thereto (other than against the
Trustee);

     (b)  any change in the time, manner or place of payment of, or in any other
term of, all or any of the obligations under the Project Documents, or any other
amendment  or  waiver  of  or  any  consent  to  any  departure from the Project
Documents  or  any  other  agreement  or  instrument  relating  thereto;

     (c)  any  exchange,  release  or  non-perfection  of any collateral, or any
release  of any party liable on the Project Indebtedness, or amendment or waiver
of  or  consent  to  any  departure  from  any  guaranty  for  all or any of the
obligations  under  the  Project  Documents;

     (d)  any  change  in  the number or identity of the Lessee, the Issuer, the
Owner  or  the  Standby  Purchaser;  or

     (e)  any  other  circumstance  which  might  otherwise constitute a defense
available  to,  or  a  discharge  of,  the  Lessee  or  the  Standby  Purchaser.

     SECTION  10.09.  The  Parties  may sign any number of copies of this Second
Supplemental  Indenture.  Each signed copy shall be an original, but all of such
executed  copies  together  shall  represent  the  same  agreement.

                                       31
<PAGE>
                          [NEXT PAGE IS SIGNATURE PAGE]

                                       32
<PAGE>
     IN WITNESS WHEREOF, the Parties hereto have caused this Second Supplemental
Indenture  to  be  duly  executed  as  of  the  Effective  Date.

ATTEST: /s/ F. STEEL                    RBF  EXPLORATION  CO.

                                        By /s/ T. NAGLE
                                           ------------------------------------
Name:  F. Steel                         Name: T. Nagle
     ---------------------------------        ---------------------------------
Title: Solicitor                        Title: Officer
      --------------------------------        ---------------------------------

ATTEST: /s/ KENNETH B. NEWTON           BTM  CAPITAL  CORPORATION

                                        By /s/ RORY P. LAUGHNA
                                           ------------------------------------
Name:  Kenneth B. Newton                Name:  Rory P. Laughna
     ---------------------------------        ---------------------------------
Title: Vice President                   Title: Senior Vice President
      --------------------------------        ---------------------------------

ATTEST: /s/ C.C. JOHNSON                NAUTILUS  EXPLORATION  LIMITED

                                        By /s/ NEAL PHILLIP KING
                                           ------------------------------------
Name:  C.C. Johnson                     Name:  Neal Phillip King
     ---------------------------------        ---------------------------------
Title: Solicitor                        Title: Attorney in Fact

ATTEST: /s/ F. STEEL                    R&B  FALCON  DEEPWATER  (UK)  LIMITED

                                        By /s/ D. HALKETT
                                           ------------------------------------
Name:  F. Steel                         Name:  D. Halkett
     ---------------------------------        ---------------------------------
Title: Solicitor                        Title: Director

ATTEST: /s/ JOHN R. WILLINGFORD         CHASE  BANK  OF  TEXAS,  NATIONAL
                                        ASSOCIATION

                                        By /s/ MAURI J. LOWEN
                                           ------------------------------------
Name:  John R. Willingford              Name:  Mauri J. Lowen
     ---------------------------------        ---------------------------------
Title: Attorney                         Title: Vice President and Trust Officer

                                       33
<PAGE>
                                   SCHEDULE 1

1.     Hire  Purchase  Agreement
2.     Lease
3.     Deed  of  Proceeds
4.     Second  Preferred  Ship  Mortgage
5.     Subordination  Agreement  (Lessor)
6.     Subordination  Agreement  (Commerzbank  AG)
7.     Put-Option  Agreement
8.     Standby  Lease
9.     Transfer  Agreement
10.    SDDI  Estoppel  Letter
11.    Letter  of  Support  from  the  Lessor  Parent
12.    Amendment  to  First  Mortgage
13.    Operation  and  Maintenance  Agreement
14.    Security  Agreement  Pledge  from  the  Issuer  to  the Lessor in a form
       approved  by  the  Trustee
15.    Security  Agreement  Pledge  from  the  Lessee  to  the Lessor in a form
       approved  by  the  Trustee
16.    Lessor  Assignment  (as  defined  in  the  Deed  of  Proceeds)
17.    New  Assignment  of  Drilling  Contract
18.    Risk  Transfer  Agreement
19.    Credit  Agreement
20.    Debenture
22.    Deposit  Agreement
22.    Reimbursement  Agreement
23.    Counterparty  Payment  Agreement
24.    Standby  Assignment  of  Insurances  from  the  Standby Purchaser to the
       Lessor  in  a  form  approved  by  the  Trustee
25.    Disbursement  Agreement  from  the  Lessee to the Standby Purchaser in a
       form  approved  by  the  Trustee
26.    Escrow  Agreement  between  the  Issuer  and  Commerzbank  AG  in a form
       approved  by  the  Trustee
27.    Lessee  Account  Assignment  between the Lessee and the Lessor in a form
       approved  by  the  Trustee

                                        1

<PAGE>
                                  EXHIBITS A-J

                                    [to come]

                                        1
<PAGE>EXECUTION COPY
================================================================================

                              RBF EXPLORATION CO.

                                    AS ISSUER

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

                   $200,000,000 SENIOR SECURED CLASS A1 NOTES
                    $50,000,000 SENIOR SECURED CLASS A2 NOTES

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

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

                          THIRD SUPPLEMENTAL INDENTURE
                                  AND AMENDMENT

                          DATED AS OF FEBRUARY 20, 2001

                            THE CHASE MANHATTAN BANK

                                   AS TRUSTEE

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

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

<PAGE>
     This  THIRD  SUPPLEMENTAL  INDENTURE  AND  AMENDMENT  ("Third  Supplemental
                                                             -------------------
Indenture"),  dated  as  of  February 20, 2001 but effective as of the Effective
---------
Time  (as  hereinafter  defined),  is  among  RBF  Exploration  Co.,  a  Nevada
corporation (the "Issuer"), BTM Capital Corporation, a Delaware corporation (the
                  ------
"Original  Owner"),  RBF  Nautilus Corporation, a Delaware corporation (the "New
 ---------------                                                             ---
Owner"),  Nautilus  Exploration  Limited,  a  company incorporated in the Cayman
-----
Islands  (the "Standby Purchaser"), R&B Falcon Deepwater (UK) Limited, a company
               -----------------
incorporated in England and Wales (the "Lessee") and The Chase Manhattan Bank, a
                                        ------
New  York  banking  organization,  as  successor Trustee to Chase Bank of Texas,
N.A.,  as  Trustee  (the  "Trustee").
                           -------

                                    RECITALS
                                    --------

     WHEREAS,  the  Issuer  and  the Trustee entered into, among other things, a
Trust  Indenture  and  Security  Agreement,  dated  as  of  August  12,  1999 as
supplemented and amended by a certain Supplemental Indenture and Amendment dated
as of February 1, 2000 among the Issuer, the Original Owner and the Trustee, and
as  further  supplemented and amended by a certain Second Supplemental Indenture
and Amendment dated as of June 2, 2000 among the Issuer, the Original Owner, the
Standby  Purchaser,  the  Lessee and the Trustee (as may be further amended, the
"Indenture");  and
 ---------

     WHEREAS,  the  Indenture  provides  that  the  Original  Owner  shall  take
appropriate  action on or before February 28, 2001 to transfer all of its right,
title  and interest in the Drilling Rig (as defined in the Indenture) to another
entity;  and

     WHEREAS,  the  Original  Owner,  the  New  Owner,  the  Issuer, the Standby
Purchaser,  the  Lessee,  RBF II Exploration Inc., a Nevada corporation, and the
Trustee  contemporaneously herewith will enter into an Assignment and Assumption
Agreement  ("Assignment  and  Assumption  Agreement") whereby the Original Owner
             --------------------------------------
shall  in  consideration  of  the  New  Owner  assuming  the  Original  Owner's
obligations  under  those  Project  Documents  to  which the Original Owner is a
party, as provided for and set forth in the Assignment and Assumption Agreement,
transfer  all  of  its  right,  title  and  interest in, among other things, the
Drilling Rig to the New Owner, such transfer of the Drilling Rig to be evidenced
by  a  Bill  of  Sale  executed  by  the  Original  Owner  ("Bill of Sale"); and
                                                             ------------

     WHEREAS,  in  connection  with the execution and delivery of the Assignment
and  Assumption  Agreement,  the  Bill  of  Sale  and  this  Third  Supplemental
Indenture,  the Original Owner, New Owner and Trustee contemporaneously herewith
will  enter  into  an  Assignment, Third Amendment and Supplement to First Naval
Mortgage  ("Addendum" and together with the Assignment and Assumption Agreement,
            --------
the  Bill  of Sale and any other agreements listed on Exhibit A hereto, the "New
                                                                             ---
Owner  Transaction  Documents");  and
-----------------------------

     WHEREAS,  Section  13.8 of the Indenture provides that the Indenture may be
amended  or  supplemented  subject  to the provisions of Article 11 thereof; and

     WHEREAS,  the Performance Bond (as defined in the Indenture) has expired by
its  terms and the Trustee has returned the Performance Bond to the Sureties (as
defined  in  the  Indenture);  and

<PAGE>
     WHEREAS,  pursuant  to  Section  11.2  of  the  Indenture, each of the Note
Holders  have  consented  to  the  Trustee entering into this Third Supplemental
Indenture  and each other New Owner Transaction Document to which the Trustee is
a  party;  and

     WHEREAS,  the  Issuer,  the  Original  Owner,  the  New  Owner, the Standby
Purchaser,  the  Lessee  and  the  Trustee  (the "Parties") now desire, with the
                                                  -------
consent  of  each  of the Note Holders, to amend and supplement the Indenture to
consent to and provide for the transactions above described and to allow for and
make  the  New  Owner  a  party  thereto;

     NOW,  THEREFORE,  to  comply  with  the  provisions of the Indenture and in
consideration  of  the  above  premises,  the Parties covenant and agree for the
equal  and  proportionate  benefit  of  the  respective Note Holders as follows:

                                    ARTICLE I

                                    GENERAL
                                    -------

     Section  1.01.     This Third Supplemental Indenture is supplemental to the
Indenture and does and shall be deemed to form a part of, and shall be construed
in connection with and as part of, the Indenture for any and all purposes.  From
the  Effective  Time,  in  accordance  with  Section  13.8 and Article 11 of the
Indenture,  and  by  executing and delivering this Third Supplemental Indenture,
the  Parties  whose signatures appear below are subject to all of the provisions
of  the  Indenture  and  this  Third  Supplemental  Indenture.

     Section 1.02.     Capitalized terms not otherwise defined herein shall have
the  respective  meaning  ascribed  thereto  in  the  Indenture.

                                   ARTICLE II

                                TRUSTEE CONSENTS
                                -----------------

     Section  2.01.     With  the  express  written  consent of each of the Note
Holders  and  the Liquidity Provider (Swiss Re), the Trustee hereby consents, to
the  extent  required  by  the  provisions  of the Indenture (including, without
limitation,  the  provisions  of Section 4.01 of the Supplemental Indenture), to
the  execution  and  delivery  by  the  Parties thereto of each of the New Owner
Transaction  Documents.

     Section  2.02.     With  the  express  written  consent of each of the Note
Holders  and  the  Liquidity Provider (Swiss Re), the Trustee hereby consents to
the transfer of the Drilling Rig by the Original Owner to the New Owner pursuant
to  the  Assignment  and  Assumption  Agreement subject to the existing security
interests  and  liens  in  favor  of  the Trustee under the Indenture, the First
Preferred  Ship  Mortgage  and  the  Second Naval Mortgage dated June 2, 2000 in
favor  of  Sovereign  Corporate  Limited.

<PAGE>
                                  ARTICLE III

                          NEW OWNER SECURITY INTEREST
                         ------------------------------

     Section  3.01.     To  secure  the  prompt  and  complete  payment  of  the
principal  of,  and interest and any applicable Make-Whole Amount on, all of the
Notes  issued and delivered and Outstanding, the payment of all other sums owing
under  the  Indenture  and  under  all  other  Project  Documents  (the "Project
                                                                         -------
Indebtedness")  and  the performance of the covenants contained in the Indenture
------------
and  in all other Project Documents, and in consideration of the premises and of
the  covenants  contained  herein  and the sum of One Dollar ($1.00) paid by the
Trustee  to  the  New  Owner  at  or before the delivery hereof, the receipt and
sufficiency  whereof  are  hereby  acknowledged,  the  New  Owner  does  hereby
acknowledge,  ratify  and  confirm  all  security  interests  heretofore granted
pursuant to the First Preferred Ship Mortgage and the Indenture in the following
described  Properties  and,  in  furtherance  thereof,  has also hereby granted,
bargained,  sold, conveyed, assigned, transferred, mortgaged, affected, pledged,
set over, confirmed, granted a continuing security interest in, and hypothecated
and  does  hereby  grant,  bargain,  sell,  convey,  assign, transfer, mortgage,
affect,  pledge,  set over, confirm, grant a continuing security interest to the
Trustee  and  to any co-trustee or separate trustee hereafter acting pursuant to
the  Indenture,  and to their respective successors and assigns in trust forever
(subject to Section 12.1 of the Indenture), all of its right, title and interest
in,  to and under the following described Properties whether now owned, existing
or  hereafter  acquired  or  arising  (all of such Properties, including without
limitation  all  properties hereafter specifically subjected to the liens of the
Indenture  by  any  indenture  supplemental  thereto  to which the New Owner has
consented  in  writing,  being  hereinafter collectively referred to as the "New
                                                                             ---
Owner  Trust  Estate"):
--------------------

          (a)  the  Equipment  and  the  Drilling  Rig;

          (b)  all  accounts  and  General  Intangibles  (including,  without
     limitation,  the  Operation  and Maintenance Agreement and all instruments,
     chattel  paper,  documents,  deposit  accounts  and investment property now
     owned  or hereafter acquired) together with any amendments or modifications
     to  the  foregoing;

          (c)  any  insurance proceeds (other than insurance proceeds payable to
     the  New Owner under liability policies for tort, environmental and similar
     liabilities),  condemnation  proceeds  and  the  accounts, issues, profits,
     products, revenues and other income of and from the Drilling Rig and/or the
     Equipment  and  all  the  estate, right, title and interest of every nature
     whatsoever  of the New Owner in and to the same and every part thereof; and

          (d)  all  proceeds  and  products  of  any  of  the  foregoing.

     This  security  interest is granted under and pursuant to the Indenture and
all  of  the  New  Owner  Trust  Estate is and shall be considered a part of the
Collateral  and  the  Trust  Estate under and pursuant to the Indenture and this
Third  Supplemental  Indenture  for  all  intents  and purposes.  Subject to the
provisions  of Article IV and Article VI hereof, all of the terms and conditions
of the Indenture with respect to the Collateral and the Trust Estate shall apply
to  the  New  Owner  Trust  Estate.  Specifically  and  in  this  connection the
provisions  of  Sections  7.4  through  and  including  7.12  of  the

<PAGE>
Indenture  apply to the New Owner Trust Estate and, subject to the provisions of
Article  VI hereof, the provisions of such Sections with respect to the "Issuer"
apply  equally  to  the  New  Owner.

                                   ARTICLE IV

                              NEW OWNER COVENANTS
                              -------------------

     Section  4.01.  Notwithstanding  any of the foregoing consents or any other
provisions  hereof,  the  New  Owner  agrees  to  comply  with all the terms and
provisions of the Indenture applicable to the Original Owner (in its capacity as
Independent  Owner under the Supplemental Indenture and in its capacity as Owner
under  the  Second  Supplemental  Indenture)  and  hereby  assumes  all  duties,
obligations  and  liabilities  of every kind and character of the Original Owner
(in  the  capacities aforesaid) under the Indenture, whether or not attributable
to periods of time before or after the Effective Time, and all references in the
Indenture  to  the  Additional  Trust  Estate  shall  be  deemed to refer to the
Collateral.

     Section  4.02.  The  New Owner hereby assumes and agrees to pay as and when
due  the  Project  Indebtedness.  The New Owner agrees that any and all payments
and  other  proceeds  paid  or  payable from or under the New Owner Trust Estate
shall  be  paid into the Collection Account established under Section 4.3 of the
Indenture  and  applied as provided therein.  Notwithstanding the foregoing, the
Issuer  remains  fully  and completely liable to pay the Project Indebtedness as
and  when  due.

     Section  4.03.  Until  367  days  have  elapsed  following  payment  and
satisfaction of all Notes, the New Owner shall not change its legal structure to
anything  other  than  a  corporation  and  shall  observe  the applicable legal
requirements for the recognition of the New Owner as a legal entity separate and
apart  from  its  stockholders  and their Affiliates, the Original Owner and its
Affiliates  and  the  Issuer  and  its Affiliates (collectively, the "Associated
                                                                      ----------
Entities"),  including,  without  limitation,  compliance  with  the  following:
--------

          (a)  the New Owner shall maintain separate corporate records, books of
     account  and financial statements (each of which shall be sufficiently full
     and  complete  to  permit  a  determination  of  the New Owner's assets and
     liabilities  and  to permit a determination of the obligees thereon and the
     time  for performance on each of the New Owner's obligations) from those of
     any  of  the  Associated  Entities;

          (b)  the New Owner shall not commingle any of its assets or funds with
     those  of  any  of  the  Associated  Entities;

          (c)  the  board  of  directors  of  the  New  Owner  shall  be elected
     independently from the board of directors of any of the Associated Entities
     and shall at all times include at least one independent director (except in
     the case of death, incapacity, resignation or removal, and in any such case
     said  independent  director  shall  be  promptly replaced) from each of the
     Associated  Entities;

<PAGE>
          (d)  the  board  of  directors and stockholders of the New Owner shall
     hold  all  regular  and special meetings appropriate to authorize corporate
     actions.  Regular meetings of directors will be held at least annually. The
     board of directors may act from time to time through one or more committees
     of  the  board  in  accordance  with  the  New Owner's by-laws. Appropriate
     minutes  of all meetings of board of directors (and committees thereof) and
     of  the  stockholders'  meetings  shall  be  kept  by  the  New  Owner;

          (e)  the  New  Owner  shall  act  solely in its own corporate name and
     through  its  own  authorized  officers  and agents. None of the Associated
     Entities  shall be appointed agent of the New Owner other than as permitted
     or  required  by  the  Project  Documents;

          (f)  the  New  Owner  shall at all times hold itself out to the public
     under the New Owner's own name as a legal entity separate and distinct from
     any  of  the  Associated  Entities  (the  foregoing  to include, but not be
     limited  to  the  use  of  materially  separate  and  distinct letterhead);

          (g)  all financial reports prepared by the New Owner shall comply with
     GAAP  and  shall  be issued separately from any reports prepared for any of
     the  Associated  Entities;  and

          (h)  if  required  by  GAAP,  the  financial  reports  of  each of the
     Associated  Entities  shall  disclose the separateness of the New Owner and
     that  the  Collateral  is  owned  by  the New Owner and is not available to
     creditors  of  any  of  such  Associated  Entities.

     Section  4.04.     The New Owner agrees to not enter into, and is currently
not  a  party to, any contract or agreement other than the New Owner Transaction
Documents  and that certain Facilitation Agreement dated as of February 20, 2001
(the  "Facilitation Agreement") among New Owner, J.H. Management Corporation and
       ----------------------
Parent;  provided  that,  the  New  Owner may become a party to any amendment or
supplement to, or other agreement contemplated by, the Facilitation Agreement or
any  Project  Document that is entered into in accordance with the terms of such
Facilitation  Agreement  or  Project  Document.

                                    ARTICLE V

                            AMENDMENTS TO INDENTURE
                            -----------------------

     Section 5.01.   Section  1.1 of  the  Indenture is hereby amended by adding
the  following  new  definitions where alphabetically appropriate, which read in
their  entirety  as  follows:

     Addendum  shall have the meaning given in the Third Supplemental Indenture.
     --------

     New  Owner  means  RBF  Nautilus  Corporation,  a  Delaware  corporation.
     ----------

     New  Owner  Party  means  New  Owner,  any  shareholder of New Owner or any
     -----------------
Affiliate  of  any  of  the  foregoing.

     Original  Owner  means  BTM  Capital  Corporation,  a Delaware corporation.
     ---------------

<PAGE>
     Third  Supplemental  Indenture  means  the Third Supplemental Indenture and
     ------------------------------
Amendment dated as of February 20, 2001 among Issuer, Original Owner, New Owner,
Standby  Purchaser,  Lessee  and  Trustee.

     Section  5.02.  (a)  Section  1.1  of  the  Indenture  is hereby amended by
replacing  the following defined terms with the definitions herein stated, which
read  in  their  entirety  as  follows:

     Project  Documents  means  both the Project Documents previously defined in
     ------------------
the  Indenture  together with the New Owner Transaction Documents defined in the
Third Supplemental Indenture.

     (b)  The  definition  of "First Preferred Ship Mortgage" shall be deemed to
include  the  Addendum.

     Section  5.03. Clauses (b), (j) and (q) of Section 7.1 of the Indenture are
hereby  amended  respectively  to  hereafter  read in their entirety as follows:

          "(b) any representation, warranty or certification at any time made or
     deemed  made herein or in any other Project Document by the Issuer, Parent,
     New  Owner,  Lessee,  Standby  Purchaser  or  Lessor,  or  any  certificate
     furnished  to  any  Purchaser  or  other  holder of any Note or the Trustee
     pursuant  to  the  provisions  hereof  or any other Project Document, shall
     prove  to have been false or misleading as of the time made or furnished in
     any  material  respect;  or"

          "(j) Parent, SDDI, Royal Dutch Shell, RBF II, New Owner (but only with
     respect  to  (d),  (e)  or  (f)),  Sovereign,  Lessor  Parent,  the Standby
     Purchaser  (at  any time that Sovereign or the Standby Purchaser is a party
     to  the  Hire  Purchase  Agreement or has title to the Drilling Rig) or the
     Lessee takes, suffers or permits to exist with respect to itself any of the
     events or conditions of the type referred to in paragraphs (d), (e), (f) or
     (i)  hereof;  or"

          "(q) Any default occurs in the covenants or obligations of the (i) New
     Owner  under the Indenture (including, without limitation, the Supplemental
     Indenture,  the  Second  Supplemental  Indenture and the Third Supplemental
     Indenture),  the  First  Preferred Ship Mortgage or the Deed of Proceeds or
     (ii)  Standby  Purchaser  or  the  Lessee  under  the  Second  Supplemental
     Indenture,  the Deed of Proceeds or, with respect to the Standby Purchaser,
     any  other  Standby  Purchaser Document or, with respect to the Lessee, any
     other  Lessee  Document (iii) Lessor under the Deed of Proceeds or (iv) the
     Trustee  receives  a  notice  from  the  New  Owner  pursuant to the second
     sentence  of Section 4.02(a)(E) of the Supplemental Indenture; and, for the
     avoidance  of doubt, the occurrence and continuation of a Termination Event
     under  the  Lease  shall  not  of  itself  constitute an Indenture Event of
     Default  unless the event or condition giving rise to the Termination Event
     is  also  stated  to  be a default under this Indenture or such Termination
     Event  creates  an  Indenture  Event  of  Default  under  the  Indenture."

     Section  5.04.  Section  13.3  of  the  Indenture  is amended by adding the
following  notice  provision  following  the  mail  address  of  the  Trustee:

<PAGE>
          If  to  the  New  Owner:
          RBF  Nautilus  Corporation
          c/o  J.H.  Management
          P.O.  Box  4024
          Boston,  MA  02101

     Section  5.05.   Each  and  every reference to the term "Owner" in Sections
9.01,  9.02  and  10.03  of the Second Supplemental Indenture shall be deemed to
include  the  New  Owner.

                                   ARTICLE VI

                          CERTAIN ADDITIONAL AGREEMENTS
                          -----------------------------

     Section  6.01     Nothing  in  Article  IV  or  elsewhere  in  this  Third
Supplemental  Indenture  shall  relieve the Issuer from any of the covenants and
obligations  of  the  Issuer  under and pursuant to the Indenture as amended and
supplemented hereby and notwithstanding the ownership of the Drilling Rig by the
New  Owner,  the Issuer remains fully responsible and liable (including, without
limitation,  as if it was the owner of the Drilling Rig) for the performance and
compliance  with all covenants and obligations of the Issuer under the Indenture
as  amended  and  supplemented  hereby  and  the  First Preferred Ship Mortgage.
Further,  the  Issuer  hereby  covenants  and  agrees  to  perform  all  of  the
obligations  of  the  New  Owner under the Indenture as supplemented and amended
hereby, the First Preferred Ship Mortgage and under all other Project Documents.

     Section  6.02    Immediately upon the Effective Time, the Original Owner is
discharged  from  all  liabilities and obligations with respect to the Indenture
and  any other Project Documents, other than accrued and then existing defaulted
obligations.  Notwithstanding  the  foregoing,  the  Original  Owner (including,
without  limitation,  its  officers, directors, stockholders and subscribers for
capital  stock)  retains  a  non-exclusive  right to indemnity, compensation and
insurance  against  protection and indemnity risks to the extent provided in the
Indenture  insofar  as  they  relate  to  events  occurring  on  or prior to the
Effective  Time.

     Section  6.03    No party (other  than  the New Owner itself) to this Third
Supplemental  Indenture shall have any claim, remedy or right to proceed against
any  incorporator or any past, present or future subscriber to the capital stock
of,  or  stockholder, officer or director of, J.H. Management Corporation or the
New  Owner  (each  such  person  being a "Protected Entity") with respect to any
obligations  under  any  of  the  Project  Documents,  whether  by virtue of any
constitutional  provision,  statute  or  rule  of  law  or by enforcement of any
penalty  or  assessment  or  otherwise,  in  respect  of any claim it might have
against  the  New  Owner  or  in  respect  of any act or omission of a Protected
Entity,  and  any  such  Protected  Entity may rely on this Section 6.03 to that
extent.

<PAGE>
                                   ARTICLE VII

                           CONDITIONS TO EFFECTIVENESS
                           ---------------------------

     Section  7.01.  This  Third  Supplemental  Indenture shall become effective
upon  the date and time (the "Effective Time") that is the later of (a) the date
of  its  execution  and delivery of this Third Supplemental Indenture by each of
the  Issuer, the Owner, the New Owner, the Standby Purchaser, the Lessee and the
Trustee  and  (b)  the  date  that  all  of  the following conditions (with each
document  referenced  being  in  form and substance satisfactory to the Trustee)
have  been  completed:

     (a)  each  of  the  New  Owner Transaction Documents have been executed and
     delivered  by  all  parties  thereto;

     (b)  the  representations  and  warranties  set  out  in the Assignment and
     Assumption  Agreement  are  true  and  correct  in  all  material respects;

     (c)  each  of  the  RBF  Parties, the New Owner, the Lessee and the Standby
     Purchaser  shall  have performed and complied with and shall continue to be
     in  compliance with all of the Project Documents to which each is a party ;

     (d)  all necessary or appropriate financing statements and other filing and
     recording  documents  necessary  to properly perfect the liens and security
     interests  evidenced by the Indenture and each of the New Owner Transaction
     Documents  which grants a lien, security interest or assignment in favor of
     the  Trustee  shall  have  been  executed  and  delivered  to  the Trustee;

     (e)  opinions  of counsel from each of Ropes & Gray, Gardere Wynne Sewell &
     Riggs,  L.L.P.,  General  Counsel  of  R&B  Falcon  Corporation  and  its
     subsidiaries,  Watson  Farley & Williams, Norton Rose, Jackson Walker, LLP,
     Maples  &  Calder  Europe,  Dewey  Ballantine LLP and Benedetti & Benedetti
     shall  have  been  delivered  to  the  Note  Holders  and  the  Trustee;

     (f)  a  letter  shall  have  been received by the Trustee from Standard and
     Poor's  Rating  Services,  a  division  of The McGraw Hill Companies, Inc.,
     confirming  the  rating of the Class A1 Notes as AA or better, and a letter
     shall  have been issued by the Trustee from Duff & Phelps Credit Rating Co.
     confirming  the rating of the Class A1 Notes as AA or better and the rating
     of  the  Class  A2  Notes  as  BBB+  or  better;

     (g)  appropriate  UCC  searches  shall  have  been  received by the Trustee
     establishing  that the security interest granted pursuant to Article III of
     this  Third  Supplemental  Indenture  is  first  priority;

     (h)  a  certificate or certificates shall have been received by the Trustee
     from appropriate insurance brokers reflecting that all insurance remains in
     full  force  and  effect  after  giving  effect  to this Third Supplemental
     Indenture  and  the  other  New  Owner  Transaction  Documents;  and

<PAGE>
     (i)  the  Issuer  shall  have  paid  the  reasonable  fees,  charges  and
     disbursements  of special counsel to each of the Class A1 Note Holders, the
     Class  A2  Note  Holders, Credit Support Parties, the Trustee, the Proceeds
     Account  Bank  and of special United Kingdom Counsel to all of the Class A1
     Note  Holders,  the  Class  A2  Note  Holders  and  Credit Support Parties;
     provided  that  such fees are reflected in a statement of each such counsel
     rendered  to the Issuer at least one Business Day prior to the date hereof.

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS
                            ------------------------

     Section  8.01.  Except  as  expressly  amended and supplemented hereby, the
Indenture  is  in  all  respects  ratified  and  confirmed  and  all  the terms,
conditions  and  provisions thereof shall remain in full force and effect.  This
Third  Supplemental  Indenture  shall  form  a  part  of  the  Indenture for all
purposes,  and  every  Note  Holder  heretofore  or  hereafter authenticated and
delivered under the Indenture shall be bound hereby and all terms and conditions
of  the  Indenture  as  amended  by  the  Supplemental  Indenture,  the  Second
Supplemental  Indenture  and  this  Third  Supplemental  Indenture shall be read
together  as  though  they  constitute  a  single  instrument.

     Section  8.02.  Except  as  otherwise expressly provided herein, no duties,
responsibilities  or  liabilities  are  assumed,  or  shall  be  construed to be
assumed,  by  the  Trustee by reason of this Third Supplemental Indenture.  This
Third  Supplemental Indenture is executed and accepted by the Trustee subject to
all  the terms and conditions set forth in the Indenture with the same force and
effect  as if those terms and conditions were repeated at length herein and made
applicable  to  the  Trustee  with  respect  hereto.

     Section  8.03.  THE GOVERNING LAW AND SUBMISSION TO JURISDICTION PROVISIONS
OF  THE  INDENTURE,  INCLUDING BUT NOT LIMITED TO THE APPLICATION OF THE LAWS OF
THE  STATE  OF  NEW  YORK, SHALL ALSO GOVERN AND BE USED TO CONSTRUE AND ENFORCE
THIS  THIRD  SUPPLEMENTAL  INDENTURE.  For  this  purpose  the  term "Issuer" in
Sections  13.4(b),  13.4(d) and 13.4(e) of the Indenture shall also be deemed to
include  the  New  Owner.

     Section  8.04.  The  Issuer represents, warrants and reaffirms that each of
the  representations  and warranties contained in Article 5 of the Note Purchase
Agreements  were  correct  in  all  material  respects  as  of  the  date  such
representations  and  warranties  were  made  and  are  correct  in all material
respects  as  of  the  date  hereof.

     Section  8.05.  All rights of the Trustee and security interests hereunder,
and  all  obligations  of  the  New  Owner  hereunder,  shall  be  absolute  and
unconditional  irrespective  of:

          (a)  any  lack  of  validity  or  enforceability of any of the Project
     Documents or any other agreement or instrument relating thereto (other than
     against  the  Trustee);

          (b)  any  change in the time, manner or place of payment of, or in any
     other  term

<PAGE>
     of, all or any of the obligations under the Project Documents, or any other
     amendment  or  waiver  of  or any consent to any departure from the Project
     Documents  or  any  other  agreement  or  instrument  relating  thereto;

          (c)  any exchange, release or non-perfection of any collateral, or any
     release  of  any  party liable on the Project Indebtedness, or amendment or
     waiver  of  or consent to any departure from any guaranty for all or any of
     the  obligations  under  the  Project  Documents;

          (d)  any  change  in the number or identity of the Lessee, the Issuer,
     the  Original  Owner  or  the  Standby  Purchaser;  or

          (e)  any other circumstance which might otherwise constitute a defense
     available  to,  or  a  discharge  of,  the  New  Owner.

     Section  8.06.  The  Parties  may  sign  any number of copies of this Third
Supplemental  Indenture.  Each signed copy shall be an original, but all of such
executed  copies  together  shall  represent  the  same  agreement.

                          [NEXT PAGE IS SIGNATURE PAGE]

<PAGE>
     IN  WITNESS WHEREOF, the Parties hereto have caused this Third Supplemental
Indenture  to  be  duly  executed  as  of  the  Effective  Time.

ATTEST:                                  RBF  EXPLORATION  CO.

                                         By /s/ ERIC B. BROWN
                                            ------------------------------------
Name:                                    Name:  Eric B. Brown
     -------------------------                ----------------------------------
Title:                                   Title: Vice President
      ------------------------                 ---------------------------------

ATTEST:                                  RBF  NAUTILUS  CORPORATION

                                         By /s/ R. DOUGLAS DONALDSON
                                            ------------------------------------
Name:  Rosa Olweri                       Name:  R. Douglas Donaldson
     -------------------------                ----------------------------------
Title: Vice President                    Title: Treasurer
      ------------------------                 ---------------------------------

ATTEST:                                  BTM  CAPITAL  CORPORATION

                                         By /s/ DAVID A. MEEHAN
                                            ------------------------------------
Name:                                    Name:  David A. Meehan
     -------------------------                ----------------------------------
Title:                                   Title: President and CEO
      ------------------------                 ---------------------------------

ATTEST:/s/ C.C. JOHNSON                  NAUTILUS  EXPLORATION  LIMITED

                                         By /s/ NEAL WING
                                            ------------------------------------
Name:  C.C. Johnson                      Name:  Neal Wing
     -------------------------                ----------------------------------
Title: Solicitor                         Title: Attorney in Fact
      ------------------------                 ---------------------------------

                                       12
<PAGE>
ATTEST: /s/ ARVID SLADE                  R&B FALCON DEEPWATER (UK) LIMITED

                                         By /s/ HELEN PALMER
                                            ------------------------------------
Name:  Arvid Slade                       Name:  Helen Palmer
     -------------------------                ----------------------------------
Title: Trainee Solicitor                 Title: Attorney in Fact
      ------------------------                 ---------------------------------

ATTEST: /s/ ARLA K. SCOTT                THE  CHASE  MANHATTAN  BANK

                                         By /s/ MAURI J. COWEN
                                            ------------------------------------
Name:  Arla K. Scott                     Name: Mauri J. Cowen
     -------------------------                ----------------------------------
Title: Assistant Vice President          Title: Vice President and Trust Officer
       And Trust Officer                       ---------------------------------
      ------------------------

                                       13
<PAGE>
                                    Exhibit A
                                    ---------

                     List of New Owner Transaction Documents

1.     Third  Supplemental  Indenture
2.     Assignment  and  Assumption  Agreement
3.     Bill  of  Sale
4.     Addendum
5.     Assignment  and  First  Addendum  to  Second  Naval  Panamanian  Mortgage
6.     Acknowledgment  of  Rig  Ownership  and  Ratification  of  Operation  and
       Maintenance  Agreement
7.     Supplemental  Agreement  by  Sovereign  to Lessee dated February 20, 2001
8.     Supplemental  Account  Mandate  Letter
9.     Supplemental  Lessor  Support  Letter

                                        1
<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]