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                                                                   EXHIBIT 10.10

                              CHILES OFFSHORE INC.

                             2000 STOCK OPTION PLAN

I.   PURPOSE. The Chiles Offshore Inc. 2000 Stock Option Plan (the "Plan") is
     intended to provide incentives which will attract, retain and motivate
     select officers, key employees and other persons providing services to
     Chiles Offshore Inc. (the "Company") and its subsidiaries and affiliates,
     by providing them opportunities to acquire shares of the Company's common
     stock, par value $.01 per share ("Common Stock"), or to receive monetary
     payments based on the value of such shares pursuant to the Benefits (as
     defined below) described herein. Furthermore, the Plan is intended to
     assist in aligning the interests of the Company's officers, key employees
     and other persons providing services to those of the Company's
     stockholders.

II.  ADMINISTRATION.

     A.   The Plan will be administered by a committee (the "Committee")
          appointed by the Board of Directors of the Company from among its
          members (which may be the Compensation Committee) and shall be
          comprised, unless otherwise determined by the Board of Directors, of
          not less than two members who shall be (i) "Non-Employee Directors"
          within the meaning of Rule 16b-3(b)(3) (or any successor rule)
          promulgated under the Securities Exchange Act of 1934, as amended (the
          "Exchange Act") and (ii) "outside directors" within the Treasury
          Regulation Section 1.162-27(e)(3) under Section 162(m) of the Internal
          Revenue Code of 1986, as amended (the "Code"). The Committee is
          authorized, subject to the provisions of the Plan, to establish such
          rules and regulations as it deems necessary for the proper
          administration of the Plan and to make such determinations and
          interpretations and to take such action in connection with the Plan
          and any Benefits granted hereunder as it deems necessary or advisable.
          In particular, the Committee may establish or waive the terms and
          conditions applicable to any Benefit awarded under the Plan and may
          waive any or all of such terms and conditions. All determinations and
          interpretations made by the Committee shall be binding and conclusive
          on all participants and their legal representatives. No member of the
          Board of the Directors, no member of the Committee and no employee of
          the Company shall be liable for any act or failure to act hereunder,
          except in circumstances involving his or her bad faith, gross
          negligence or willful misconduct, or for any act or failure to act
          hereunder by any other member or employee or by any agent to whom
          duties in connection with the administration of this Plan have been
          delegated. The Company shall indemnify members of the Committee and
          any agent of the Committee who is an employee of the Company, a
          subsidiary or an affiliate against any and all liabilities or expenses
          to which they may be subjected by reason of any act or failure to act
          with respect to their duties

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          on behalf of the Plan, except in circumstances involving such person's
          bad faith, gross negligence or willful misconduct.

     B.   The Committee may delegate to one or more of its members, or to one or
          more agents, such administrative duties as it may deem advisable, and
          the Committee, or any person to whom it has delegated duties as
          aforesaid, may employ one or more persons to render advice with
          respect to any responsibility the Committee or such person may have
          under the Plan. The Committee may employ such legal or other counsel,
          consultants and agents as it may deem desirable for the administration
          of the Plan and may rely upon any opinion or computation received from
          any such counsel, consultant or agent. Expenses incurred by the
          Committee in the engagement of such counsel, consultant or agent shall
          be paid by the Company, or the subsidiary or affiliate whose employees
          have benefited from the Plan, as determined by the Committee.

III. PARTICIPANTS. Participants will consist of such officers, key employees and
     other persons providing services to the Company and its subsidiaries and
     affiliates as the Committee in its sole discretion determines to be
     significantly responsible for the success and future growth and
     profitability of the Company and whom the Committee may designate from time
     to time to receive Benefits under the Plan. Designation of a participant in
     any year shall not require the Committee to designate such person to
     receive a Benefit in any other year or, once designated, to receive the
     same type or amount of Benefit as granted to the participant in any other
     year. The Committee shall consider such factors as it deems pertinent in
     selecting participants and in determining the type and amount of their
     respective Benefits.

IV.  TYPE OF BENEFITS. Benefits under the Plan may be granted in any one or a
     combination of (a) Stock Options, (b) Stock Appreciation Rights, (c) Stock
     Awards, (d) Performance Awards and (e) Stock Units (each as described
     below, and collectively, the "Benefits"). Benefits shall be evidenced by
     agreements (which need not be identical) in such forms as the Committee may
     from time to time approve; provided, however, that in the event of any
     conflict between the provisions of the Plan and any such agreements, the
     provisions of the Plan shall prevail. The maximum number of shares of
     Common Stock with respect to which Benefits may be granted or measured to
     any individual participant under the Plan during any two calendar years
     shall not exceed 200,000, subject to any adjustments made in accordance
     with Section 12.

V.   COMMON STOCK AVAILABLE UNDER THE PLAN. The aggregate number of shares of
     Common Stock that may be subject to Benefits, including Stock Options,
     granted under this Plan shall be the lesser of 1.1 million shares of
     Common Stock or five percent (5%) of the outstanding Common Stock on a
     fully diluted basis as of the date of the completion of an initial public
     offering of Common Stock, subject to any adjustments made in accordance
     with Section 12

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     hereof. Shares of Common Stock subject to the Plan may be authorized and
     unissued shares or treasury shares. Any shares of Common Stock subject to a
     Stock Option or Stock Appreciation Right which for any reason is canceled
     or terminated without having been exercised, any shares subject to Stock
     Awards, Performance Awards or Stock Units which are forfeited, any shares
     subject to Benefits settled in cash or any shares delivered to the Company
     as part or full payment for the exercise of a Benefit shall again be
     available for Benefits under the Plan. The preceding sentence shall apply
     only for purposes of determining the aggregate number of shares of Common
     Stock subject to Benefits but shall not apply for purposes of determining
     the maximum number of shares of Common Stock with respect to which Benefits
     (including the maximum number of shares of Common Stock subject to Stock
     Options and Stock Appreciation Rights) that may be grated to any individual
     participant under the Plan.

VI.  STOCK OPTIONS. Stock Options will consist of awards from the Company that
     will enable the holder to purchase a specific number of shares of Common
     Stock, at set terms and at a fixed purchase price. Stock Options may be
     "incentive stock options" ("Incentive Stock Options"), within the meaning
     of Section 422 of the Code, or Stock Options which do not constitute
     Incentive Stock Options ("Nonqualified Stock Options"). The Committee will
     have the authority to grant to any participant one or more Incentive Stock
     Options, Nonqualified Stock Options, or both types of Stock Options (in
     each case with or without Stock Appreciation Rights); provided that Stock
     Options granted to any person who is not an employee of the Company or any
     parent or subsidiary corporation thereof (as defined in Section 424 of the
     Code) shall not be traded as Incentive Stock Options. Each Stock Option
     shall be subject to such terms and conditions consistent with the Plan as
     the Committee may impose from time to time, subject to the following
     limitations:

     A.   EXERCISE PRICE. Each Stock Option granted hereunder shall have such
          per-share exercise price as the Committee may determine at the date of
          grant; provided, however, subject to subsection (d) below that the
          per-share exercise price shall not be less than 90% of the Fair Market
          Value (as defined below) of the Common Stock on the date the Stock
          Option is granted.

     B.   PAYMENT OF EXERCISE PRICE. The option exercise price may be paid in
          cash or, in the discretion of the Committee, by the delivery of shares
          of Common Stock then owned by the participant, or by a combination of
          these methods. In the discretion of the Committee, payment may also be
          made by delivering a properly executed exercise notice to the Company
          together with a copy of irrevocable instructions to a broker to
          deliver promptly to the Company the amount of sale or loan proceeds to
          pay the exercise price. To facilitate the foregoing, the Company may
          enter into agreements for coordinated procedures with one or more
          brokerage firms. The Committee may prescribe any other method

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          of paying the exercise price that it determines to be consistent with
          applicable law and the purpose of the Plan, including, without
          limitation, in lieu of the exercise of a Stock Option by delivery of
          shares of Common Stock of the Company then owned by a participant,
          providing the Company with a notarized statement attesting to the
          number of shares owned, where upon verification by the Company, the
          Company would issue to the participant only the number of incremental
          shares to which the participant is entitled upon exercise of the Stock
          Option. The Committee may, at the time of grant, provide for the grant
          of a subsequent Restoration Stock Option if the exercise price is paid
          for by delivering previously owned shares of Common Stock of the
          Company. Restoration Stock Options (i) may be granted in respect of no
          more than the number of shares of Common Stock tendered in exercising
          the predecessor Stock Option, (ii) shall have an exercise price equal
          to the Fair Market Value on the date the Restoration Stock Option is
          granted, and (iii) may have an exercise period that does not extend
          beyond the remaining term of the predecessor Stock Option. In
          determining which methods a participant may utilize to pay the
          exercise price, the Committee may consider such factors as it
          determines are appropriate.

     C.   EXERCISE PERIOD. Stock Options granted under the Plan shall be
          exercisable at such time or times and subject to such terms and
          conditions as shall be determined by the Committee; provided, however,
          that no Stock Option shall be exercisable later than ten years after
          the date it is granted except in the event of a participant's death,
          in which case, the exercise period of such participant's Stock Options
          may be extended beyond such period but no later than one year after
          the participant's death. All Stock Options shall terminate at such
          earlier times and upon such conditions or circumstances as the
          Committee shall in its discretion set forth in such option agreement
          at the date of grant; PROVIDED, HOWEVER, the Committee may, in its
          sole, discretion, later wave any such condition.

     D.   LIMITATIONS ON INCENTIVE STOCK OPTIONS. Incentive Stock Options may be
          granted only to participants who are employees of the Company or one
          of its subsidiaries (within the meaning of Section 424(f) of the Code)
          at the date of grant. The per share exercise price of an Incentive
          Stock Option shall not be less than the Fair Market Value (determined
          as of the date of grant of such option) of a share of Common Stock .
          The aggregate Fair Market Value (determined as of the time the option
          is granted) of the Common Stock with respect to which Incentive Stock
          Options are exercisable for the first time by a participant during any
          calendar year (under all option plans of the Company and of any parent
          corporation or subsidiary corporation (as defined in Sections 424(e)
          and (f) of the Code, respectively)) shall not exceed $100,000. For
          purposes of the preceding sentence, Incentive Stock Options will be
          taken into account

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          in the order in which they are granted. Incentive Stock Options may
          not be granted to any participant who, at the time of grant, owns
          stock possessing (after the application of the attribution rules of
          Section 424(d) of the Code) more than 10% of the total combined voting
          power of all classes of stock of the Company or any parent or
          subsidiary corporation of the Company, unless the option price is
          fixed at not less than 110% of the Fair Market Value of the Common
          Stock on the date of grant and the exercise of such option is
          prohibited by its terms after the expiration of five years from the
          date of grant of such option. Notwithstanding anything to the contrary
          contained herein, no Incentive Stock Option may be exercised later
          than ten years after the date it is granted.

     E.   POST-EMPLOYMENT EXERCISES. The exercise of any Stock Option after
          termination of employment shall be in accordance with the terms and
          subject to the conditions established by the Committee pursuant to
          Section 6(c) hereof and, in any case, shall be further subject to
          satisfaction of the conditions precedent that the Participant neither
          (i) competes with, or takes other employment with or renders services
          to a competitor of, the Company, its subsidiaries or affiliates
          without the written consent of the Company, nor (ii) conducts himself
          or herself in a manner adversely affecting the Corporation; provided,
          however, that the Committee, in its sole discretion, may wave any
          conditions imposed in the grant letter or as set forth in (i) and (ii)
          above relating to the exercise of options after the date of
          termination of employment during the terms of the option.

VII. STOCK APPRECIATION RIGHTS.

     A.   The Committee may, in its discretion, grant Stock Appreciation Rights
          to the holders of any Stock Options granted hereunder. In addition,
          Stock Appreciation Rights may be granted independently of, and without
          relation to, Stock Options. A Stock Appreciation Right means a right
          to receive a payment, in cash, Common Stock or a combination thereof,
          in an amount equal to the excess of (x) the Fair Market Value, or
          other specified valuation, of a specified number of shares of Common
          Stock on the date the right is exercised over (y) the Fair Market
          Value, or other specified valuation (which shall be no less than the
          Fair Market Value), of such shares of Common Stock on the date the
          right is granted, all as determined by the Committee; provided,
          however, that if a Stock Appreciation Right is granted retroactively
          in tandem with or in substitution for a Stock Option, the designated
          Fair Market Value in the award agreement may be the Fair Market Value
          on the date such Stock Option was granted. Each Stock Appreciation
          Right shall be subject to such terms and conditions as the Committee
          shall impose from time to time.

     B.   Stock Appreciation Rights granted under the Plan shall be exercisable
          at such time or times and subject to such terms and conditions as
          shall be

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          determined by the Committee; provided, however, that no Stock
          Appreciation Rights shall be exercisable later than ten years after
          the date it is granted except in the event of a participant's death,
          in which case, the exercise period of such participant's Stock
          Appreciation Rights may be extended beyond such period but no later
          than one year after the participant's death. All Stock Appreciation
          Rights shall terminate at such earlier times and upon such conditions
          or circumstances as the Committee shall in its discretion set forth in
          such option at the date of grant.

     C.   The exercise of any Stock Appreciation Right after termination of
          employment shall be subject to satisfaction of the conditions
          precedent that the Participant neither (i) competes with, or takes
          other employment with or renders services to a competitor of, the
          Company, its subsidiaries or affiliates without the written consent of
          the Company, nor (ii) conducts himself or herself in a manner
          adversely affecting the Corporation; provided, however, that the
          Committee, in its sole discretion, may wave any conditions imposed in
          the grant letter or as set forth in (i) and (ii) above relating to the
          exercise of options after the date of termination of employment during
          the terms of the option.

VIII. STOCK AWARDS. The Committee may, in its discretion, grant Stock Awards
     (which may include mandatory payment of bonus incentive compensation in
     stock) consisting of Common Stock issued or transferred to participants
     with or without other payments therefor. Stock Awards may be subject to
     such terms and conditions as the Committee determines appropriate,
     including, without limitation, restrictions on the sale or other
     disposition of such shares, the right of the Company to reacquire such
     shares for no consideration upon termination of the participant's
     employment within specified periods, and conditions requiring that the
     shares be earned in whole or in part upon the achievement of performance
     goals established by the Committee over a designated period of time. The
     Committee may require the participant to deliver a duly signed stock power,
     endorsed in blank, relating to the Common Stock covered by such an Award.
     The Committee may also require that the stock certificates evidencing such
     shares be held in custody or bear restrictive legends until the
     restrictions thereon shall have lapsed. The Stock Award shall specify
     whether the participant shall have, with respect to the shares of Common
     Stock subject to a Stock Award, all of the rights of a holder of shares of
     Common Stock of the Company, including the right to receive dividends and
     to vote the shares.

IX.  PERFORMANCE AWARDS.

     A.   Performance Awards may be granted to participants at any time and from
          time to time, as shall be determined by the Committee. The Committee
          shall have complete discretion in determining the number, amount and
          timing of awards granted to each participant. Such Performance Awards
          may be in the form of shares of Common Stock or Stock Units.

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          Performance Awards may be awarded as short-term or long-term
          incentives. The Committee shall set performance targets at its
          discretion which, depending on the extent to which they are met, will
          determine the number and/or value of Performance Awards that will be
          paid out to the participants, and may attach to such Performance
          Awards one or more restrictions. Performance targets may be based
          upon, without limitation, Company-wide, divisional and/or individual
          performance.

     B.   The Committee shall have the authority at any time to make adjustments
          to performance targets for any outstanding Performance Awards which
          the Committee deems necessary or desirable unless at the time of
          establishment of such targets the Committee shall have precluded its
          authority to make such adjustments.

     C.   Payment of earned Performance Awards shall be made in accordance with
          terms and conditions prescribed or authorized by the Committee. The
          participant may elect to defer, or the Committee may require or permit
          the deferral of, the receipt of Performance Awards upon such terms as
          the Committee deems appropriate.

X.   STOCK UNITS.

     A.   The Committee may, in its discretion, grant Stock Units to
          participants hereunder. The Committee shall determine the criteria for
          the vesting of Stock Units. A Stock Unit granted by the Committee
          shall provide payment in shares of Common Stock at such time as the
          award agreement shall specify. Shares of Common Stock issued pursuant
          to this Section 10 may be issued with or without other payments
          therefor as may be required by applicable law or such other
          consideration as may be determined by the Committee. The Committee
          shall determine whether a participant granted a Stock Unit shall be
          entitled to a Dividend Equivalent Right (as defined below).

     B.   Upon vesting of a Stock Unit, unless the Committee has determined to
          defer payment with respect to such unit or a participant has elected
          to defer payment under subsection (c) below, shares of Common Stock
          representing the Stock Units shall be distributed to the participant
          unless the Committee provides for the payment of the Stock Units in
          cash or partly in cash and partly in shares of Common Stock equal to
          the value of the shares of Common Stock which would otherwise be
          distributed to the participant.

     C.   Prior to the year with respect to which a Stock Unit may vest, the
          participant may elect not to receive a distribution upon the vesting
          of such Stock Unit and for the Company to continue to maintain the
          Stock Unit on

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          its books of account. In such event, the value of a Stock Unit shall
          be payable in shares of Common Stock pursuant to the agreement of
          deferral.

     D.   A "Stock Unit" means a notional account representing one share of
          Common Stock. A "Dividend Equivalent Right" means the right to receive
          the amount of any dividend paid on the share of Common Stock
          underlying a Stock Unit, which shall be payable in cash or in the form
          of additional Stock Units.

XI.  FOREIGN OPTIONS AND RIGHTS.

     A.   The Committee may grant Benefits to individual participants who are
          subject to the tax laws of nations other than the United States, which
          Benefits may have terms and conditions as determined by the Committee
          as necessary to comply with applicable foreign laws. The Committee may
          take any action which it deems advisable to obtain approval of such
          Benefits by the appropriate foreign governmental entity; PROVIDED,
          HOWEVER, that no such Benefits may be granted pursuant to this Section
          11 and no action may be taken which would result in a violation of the
          Exchange Act, the Code or any other applicable law.

XII. ADJUSTMENT PROVISIONS; CHANGE IN CONTROL.

     A.   If there shall be any change in the Common Stock of the Company, or
          the capitalization of the Company through merger, consolidation,
          reorganization, recapitalization, stock dividend, stock split, reverse
          stock split, split up, spinoff, combination of shares, exchange of
          shares, dividend in kind or other like change in capital structure or
          distribution (other than normal cash dividends) to stockholders of the
          Company, an adjustment shall be made to each outstanding Stock Option
          and Stock Appreciation Right such that each such Stock Option and
          Stock Appreciation Right shall thereafter be exercisable for such
          securities, cash and/or other property as would have been received in
          respect of the Common Stock subject to such Stock Option or Stock
          Appreciation Right had such Stock Option or Stock Appreciation Right
          been exercised in full immediately prior to such change or
          distribution, and such an adjustment shall be made successively each
          time any such change shall occur. In addition, in the event of any
          such change or distribution, in order to prevent dilution or
          enlargement of participants' rights under the Plan, the Committee will
          have authority to adjust, in an equitable manner, the number and kind
          of shares that may be issued under the Plan, the number and kind of
          shares subject to outstanding Benefits, the exercise price applicable
          to outstanding Benefits, and the Fair Market Value of the Common Stock
          and other value determinations applicable to outstanding Benefits.
          Appropriate adjustments may also be made by the Committee in the terms
          of any Benefits under the Plan to reflect such changes or
          distributions and

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          to modify any other terms of outstanding Benefits on an equitable
          basis, including modifications of performance targets and changes in
          the length of performance periods. In addition, the Committee is
          authorized to make adjustments to the terms and conditions of, and the
          criteria included in, Benefits in recognition of unusual or
          nonrecurring events affecting the Company or the financial statements
          of the Company, or in response to changes in applicable laws,
          regulations, or accounting principles. Notwithstanding the foregoing,
          (i) each such adjustment with respect to an Incentive Stock Option
          shall comply with the rules of Section 424(a) of the Code, and (ii) in
          no event shall any adjustment be made which would render any Incentive
          Stock Option granted hereunder other than an incentive stock option
          for purposes of Section 422 of the Code.

     B.   Notwithstanding any other provision of this Plan, if there is a Change
          in Control of the Company, all then outstanding Stock Options and
          Stock Appreciation Rights shall immediately become exercisable. For
          purposes of this Section 12(b), a "Change in Control" of the Company
          shall be deemed to have occurred upon any of the following events:

          1.   A change in control of the Company that would be required to be
               reported in response to Item 6(e) of Schedule 14A of Regulation
               14A promulgated under the Exchange Act; or

          2.   During any period of two (2) consecutive years, the individuals
               who at the beginning of such period constitute the Company's
               Board of Directors or any individuals who would be "Continuing
               Directors" (as hereinafter defined) cease for any reason to
               constitute at least a majority thereof; or

          3.   The Company's Common Stock shall cease to be publicly traded; or

          4.   The Company's Board of Directors shall approve a sale of all or
               substantially all of the assets of the Company, and such
               transaction shall have been consummated; or

          5.   The Company's Board of Directors shall approve any merger,
               consolidation, or like business combination or reorganization of
               the Company, the consummation of which would result in the
               occurrence of any event described in Section 12(b)(ii) or (iii)
               above, and such transaction shall have been consummated.

     Notwithstanding the foregoing, (A) any spin-off of a division or subsidiary
of the Company to its stockholders and (B) any event listed in (i) through (v)
above that the Board of Directors determines not to be a Change in Control of
the Company, shall not constitute a Change in Control of the Company.

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     For purposes of this Section 12(b), "Continuing Directors" shall mean (x)
the directors of the Company in office on the Effective Date (as defined below)
and (y) any successor to any such director and any additional director who after
the Effective Date was nominated or selected by a majority of the Continuing
Directors in office at the time of his or her nomination or selection.

     The Committee, in its discretion, may determine that, upon the occurrence
of a Change in Control of the Company, each Stock Option and Stock Appreciation
Right outstanding hereunder shall terminate within a specified number of days
after notice to the holder, and such holder shall receive, with respect to each
share of Common Stock subject to such Stock Option or Stock Appreciation Right,
an amount equal to the excess of the Fair Market Value of such shares of Common
Stock immediately prior to the occurrence of such Change in Control over the
exercise price per share of such Stock Option or Stock Appreciation Right; such
amount to be payable in cash, in one or more kinds of property (including the
property, if any, payable in the transaction) or in a combination thereof, as
the Committee, in its discretion, shall determine. The provisions contained in
the preceding sentence shall be inapplicable to a Stock Option or Stock
Appreciation Right granted within six (6) months before the occurrence of a
Change in Control if the holder of such Stock Option or Stock Appreciation Right
is subject to the reporting requirements of Section 16(a) of the Exchange Act
and no exception from liability under Section 16(b) of the Exchange Act is
otherwise available to such holder.

XIII. NONTRANSFERABILITY. Each Benefit granted under the Plan to a participant
     shall not be transferable otherwise than by will or the laws of descent and
     distribution, and shall be exercisable, during the participant's lifetime,
     only by the participant. In the event of the death of a participant, each
     Stock Option or Stock Appreciation Right theretofore granted to him or her
     shall be exercisable during such period after his or her death as the
     Committee shall in its discretion set forth in such option or right at the
     date of grant and then only by the executor or administrator of the estate
     of the deceased participant or the person or persons to whom the deceased
     participant's rights under the Stock Option or Stock Appreciation Right
     shall pass by will or the laws of descent and distribution.

XIV. OTHER PROVISIONS. The award of any Benefit under the Plan may also be
     subject to such other provisions (whether or not applicable to the Benefit
     awarded to any other participant) as the Committee determines appropriate,
     including, without limitation, for the installment purchase of Common Stock
     under Stock Options, for the installment exercise of Stock Appreciation
     Rights, to assist the participant in financing the acquisition of Common
     Stock, for the forfeiture of, or restrictions on resale or other
     disposition of, Common Stock acquired under any form of Benefit, for the
     acceleration of exercisability or vesting of Benefits in the event of a
     change in control of the Company, for the payment of the value of Benefits
     to participants in the event of a change in control of the Company, or to
     comply with federal and state securities laws, or understandings or
     conditions as to the participant's employment in addition to those
     specifically provided for under the Plan.

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XV.  FAIR MARKET VALUE. For purposes of this Plan and any Benefits awarded
     hereunder, Fair Market Value shall be the closing price of the Common Stock
     on the date of calculation (or on the last preceding trading date if Common
     Stock was not traded on such date) if the Common Stock is readily tradeable
     on a national securities exchange or other market system, and if the Common
     Stock is not readily tradeable, Fair Market Value shall mean the amount
     determined in good faith by the Committee as the fair market value of the
     Common Stock.

XVI. WITHHOLDING. All payments or distributions of Benefits made pursuant to the
     Plan shall be net of any amounts required to be withheld pursuant to
     applicable federal, state and local tax withholding requirements. If the
     Company proposes or is required to distribute Common Stock pursuant to the
     Plan, it may require the recipient to remit to it or to the corporation
     that employs such recipient an amount sufficient to satisfy such tax
     withholding requirements prior to the delivery of any certificates for such
     Common Stock. In lieu thereof, the Company or the employing corporation
     shall have the right to withhold the amount of such taxes from any other
     sums due or to become due from such corporation to the recipient as the
     Committee shall prescribe. The Committee may, in its discretion and subject
     to such rules as it may adopt (including any as may be required to satisfy
     applicable tax and/or non-tax regulatory requirements), permit an optionee
     or award or right holder to pay all or a portion of the federal, state and
     local withholding taxes arising in connection with any Benefit consisting
     of shares of Common Stock by electing to have the Company withhold shares
     of Common Stock having a Fair Market Value equal to the amount of tax to be
     withheld, such tax calculated at rates required by statute or regulation.

XVII. TENURE. A participant's right, if any, to continue to serve the Company or
     any of its subsidiaries or affiliates as an officer, employee, or
     otherwise, shall not be enlarged or otherwise affected by his or her
     designation as a participant under the Plan.

XVIII. UNFUNDED PLAN. Participants shall have no right, title, or interest
     whatsoever in or to any investments which the Company may make to aid it in
     meeting its obligations under the Plan. Nothing contained in the Plan, and
     no action taken pursuant to its provisions, shall create or be construed to
     create a trust of any kind, or a fiduciary relationship between the Company
     and any participant, beneficiary, legal representative or any other person.
     To the extent that any person acquires a right to receive payments from the
     Company under the Plan, such right shall be no greater than the right of an
     unsecured general creditor of the Company. All payments to be made
     hereunder shall be paid from the general funds of the Company and no
     special or separate fund shall be established and no segregation of assets
     shall be made to assure payment of such amounts except as expressly set
     forth in the Plan. The Plan is not intended to be subject to the Employee
     Retirement Income Security Act of 1974, as amended.

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XIX. NO FRACTIONAL SHARES. No fractional shares of Common Stock shall be issued
     or delivered pursuant to the Plan or any Benefit. The Committee shall
     determine whether cash, or Benefits, or other property shall be issued or
     paid in lieu of fractional shares or whether such fractional shares or any
     rights thereto shall be forfeited or otherwise eliminated.

XX.  DURATION, AMENDMENT AND TERMINATION. No Benefit shall be granted more
     than ten years after the Effective Date; PROVIDED, HOWEVER, that the
     terms and conditions applicable to any Benefit granted prior to such
     date may thereafter be amended or modified by mutual agreement between
     the Company and the participant or such other persons as may then have
     an interest therein. Also, by mutual agreement between the Company and a
     participant hereunder, under this Plan or under any other present or
     future plan of the Company, Benefits may be granted to such participant
     in substitution and exchange for, and in cancellation of, any Benefits
     previously granted such participant under this Plan, or any other
     present or future plan of the Company. The Board of Directors may amend
     the Plan from time to time or suspend or terminate the Plan at any time.
     However, no action authorized by this Section 20 shall reduce the amount
     of any existing Benefit or change the terms and conditions thereof
     without the participant's consent. No amendment of the Plan shall,
     without approval of the stockholders of the Company, (i) materially
     increase the total number of shares which may be issued under the Plan;
     (ii) materially increase the amount or type of Benefits that may be
     granted under the Plan; or (iii) materially modify the requirements as
     to eligibility for Benefits under the Plan.

XXI. GOVERNING LAW. This Plan, Benefits granted hereunder and actions taken in
     connection herewith shall be governed and construed in accordance with the
     laws of the State of New York (regardless of the law that might otherwise
     govern under applicable New York principles of conflict of laws).

XXII. EFFECTIVE DATE.

A.   The Plan was adopted by the Board of Directors and approved by the
     stockholders of the Company as of June 22, 2000, but shall be effective
     immediately prior to the date of completion of an initial public offering
     of Common Stock (the "Effective Date").

B.   This Plan shall terminate on June 21, 2010 (unless sooner terminated by the
     Board of Directors).

                                       12<PAGE>

                                                                  Exhibit 10.16

                          REGISTRATION RIGHTS AGREEMENT

                  REGISTRATION RIGHTS AGREEMENT, dated as of June 15, 2000
(this "AGREEMENT"), among Chiles Offshore LLC, a Delaware limited liability
company ("CHILES"), and each person who has agreed to become bound by, and
subject to, the terms hereof (collectively, the "HOLDERS" and each, a
"HOLDER").

                              W I T N E S S E T H :

                  WHEREAS, pursuant to certain agreements entered into in order
to effect the conversion of Chiles into a Delaware corporation or the merger of
Chiles into a successor entity organized as a Delaware corporation (the
"FORMATION," with Chiles, following such conversion, or the entity resulting
from such merger, being referred to herein as the "COMPANY"), the Company,
contemporaneously with the Formation, (a) shall issue shares of common stock to
each of the Holders in conversion of or exchange for the Membership Interests in
Chiles ("Membership Interests") presently held by them, (b) shall issue warrants
to purchase shares of common stock of the Company to each of the Holders who
hold rights to purchase Membership Interests ("RIGHTS") immediately prior to the
Formation in exchange for such Rights (c) may issue shares of common stock to
certain persons in connection with the direct or indirect acquisition of a
drilling rig that Chiles currently operates under a "bareboat" charter (the
shares of common stock to be issued pursuant to clause (a) above; the shares of
common stock for which the Warrants referred to in this clause (b) are
exercisable and the shares of common stock that may be issued in the transaction
described in clause (c), above, are referred to collectively as the "SHARES"),
and (d) shall offer for sale shares of common stock in an initial public
offering thereof (the "INITIAL PUBLIC OFFERING");

                  WHEREAS, each of the Holders, pursuant to a Consent and
Amendment to the Second Amended and Restated Operating Agreement of Chiles
Offshore LLC (the "CONSENT"), dated as of June 15, 2000, or otherwise, has
agreed to be bound by, and subject to the terms and conditions of this
Agreement;

                  WHEREAS, the Shares and Warrants will be delivered to the
Holders pursuant to the Formation without registration under the Securities Act
(as defined) in reliance on an applicable exemption from such registration, and
the Company and the Holders desire to provide for the registration of the resale
by the Holders of Registrable Securities (as hereinafter defined) from time to
time, upon the terms and subject to conditions set forth below; and

                  WHEREAS, it is intended by the Company and the Holders that
this Agreement shall become effective immediately upon the Formation.

                  NOW, THEREFORE, in consideration of the foregoing and the
mutual covenants herein contained, the parties hereto, intending to be legally
bound, hereby agree as follows:
<PAGE>

                  Section 1. CERTAIN OTHER DEFINITIONS. As used in this
Agreement, the following capitalized terms (in their singular and plural forms,
as applicable) have the following meanings:

                  "BUSINESS DAY" means any day on which commercial banks are
open for business in the City of New York, Borough of Manhattan.

                  "COMMISSION" means the United States Securities and Exchange
Commission and any successor United States federal agency or governmental
authority having similar powers.

                  "COMMON STOCK" means the common stock, $0.01 par value, of the
Company.

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission thereunder.

                  The terms "REGISTER," "REGISTERED" and "REGISTRATION" means a
registration effected by preparing and filing with the Commission a registration
statement on an appropriate form in compliance with the Securities Act, and the
declaration or order of the Commission of the effectiveness of such registration
statement under the Securities Act.

                  "LISTING" means (i) the admission to listing of any of the
Common Stock on a recognized stock exchange and such listing becoming effective
in accordance with the rules of the relevant exchange or (ii) the commencement
of trading of any of the Common Stock on an inter-dealer quotation system.

                  "REGISTRABLE SECURITIES" means the Shares issued to the
Holders in connection with the Formation, the Shares for which the Warrants
issued to certain Holders in connection with the Formation are exercisable and
any other securities issued by the Company to the Holders at any time after the
Formation in respect of the Shares (and in respect of the Common Stock
generally) by means of exchange, reclassification, dividend, distribution, split
up, combination, subdivision, recapitalization, merger, spin-off, reorganization
or otherwise; PROVIDED, HOWEVER, that as to any Registrable Securities, such
securities shall cease to constitute the same for purposes of this Agreement if
and when (i) a registration statement with respect to the sale of such Shares
shall have been declared effective by the Commission and such Shares shall have
been sold pursuant thereto in accordance with the intended plan and method of
distribution therefor set forth in the final prospectus forming part of such
registration statement; (ii) such Shares shall have been sold in satisfaction of
all applicable resale provisions of Rule 144 under the Securities Act; (iii) as
expressed in an opinion of independent counsel delivered and satisfactory to the
Company and the transfer agent for the Common Stock, such Shares may be resold
pursuant to Rule 144(k) under the Securities Act (or any successor provision) or
all of such Holder's Registrable Securities may be resold in a single ninety
(90) day period under Rule 144 of the Securities Act and do not require
qualification

                                       2
<PAGE>

under any state securities or "BLUE SKY" law then in effect, or the use of an
applicable exemption therefrom and, in each case, the Company has notified the
transfer agent for the Common Stock that any restrictive legend on such Shares
may be removed in connection with a transfer thereof; or (iv) such Shares cease
to be issued and outstanding for any reason.

                  "REGISTRATION EXPENSES" means all expenses incurred by the
Company in complying with Section 4 hereof, including, without limitation, all
registration and filing fees (including fees and expenses associated with
filings required to be made with the National Association of Securities Dealers,
Inc. and any national securities exchange or U.S. automated inter-dealer
quotation system of a registered national securities association on which the
Common Stock is listed or otherwise admitted to unlisted trading privileges),
printing expenses, if any (including expenses of printing certificates for the
Common Stock being registered in a form eligible for deposit with The Depository
Trust Company and of printing registration statements and prospectuses), fees
and disbursements of counsel for the Company, fees and expenses of compliance
with state securities or "BLUE SKY" laws (including reasonable fees and expenses
of one firm of counsel for underwriters, if any, in connection with "BLUE SKY"
qualifications of the Registrable Securities being registered and the
determination of eligibility for investment under the laws of such jurisdictions
designated by the underwriters, if any), accountants' fees and expenses
(including the expenses of any special audits or "COMFORT" letters incident to
or required by any such registration), transfer taxes, fees of transfer agents
and registrars, and fees and disbursements of underwriters customarily paid by
issuers or sellers of securities, but excluding underwriting discounts and
commissions and broker-dealer concessions and allowances and marketing expenses.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended,
and the rules and regulations of the Commission thereunder.

                  "SIGNIFICANT SUBSIDIARY" has the meaning ascribed to such term
in Rule 1-02(w) of Regulation S-X under the Securities Act and the Exchange Act.

                  "UNDERWRITTEN OFFERING" means a registration under the
Securities Act pursuant to which securities of the Company are sold to an
underwriter for reoffering and distribution to the public.

                  Section 2. REPRESENTATIONS AND WARRANTIES OF HOLDERS.

                  (a) INVESTMENT REPRESENTATIONS. Each Holder severally (and not
jointly) hereby represents, acknowledges, covenants and agrees as follows: (i)
the Shares are being acquired for such Holder's own account for investment
purposes only and not with a view to any public resale, public distribution or
public offering thereof within the meaning of the Securities Act or any state
securities or "BLUE SKY" law; (ii) to the knowledge of such Holder, the Shares
have not been registered under the Securities Act or any state securities or
"BLUE SKY" law; (iii) such Holder either is an "ACCREDITED INVESTOR" within the
meaning of Rule 501 of Regulation D under the Securities Act, or

                                       3
<PAGE>

alone or together with such Holder's purchaser representative, has such
knowledge and experience in financial and business matters that such Holder is
capable of evaluating the relative merits and risks of the prospective
investment in the Shares and able to bear the economic consequences thereof;
(iv) such Holder will not offer for sale, sell or otherwise transfer any of the
Shares (or any interest therein) except pursuant to a registration statement as
contemplated hereby or pursuant to an exemption from the registration
requirements of the Securities Act and any applicable state securities or "BLUE
SKY" laws and, in the case of an offer to sell, sale or other transfer pursuant
to such an exemption, the Company has received (or waived the requirement
therefor) a written opinion of U.S. counsel in form and substance satisfactory
to it to the effect that such disposition is exempt from such registration
requirements, provided that such Holder, prior to effecting any transfer of
Shares pursuant to such an exemption, will cause the intended transferee of the
Shares to agree to take and hold such Shares subject to the terms and conditions
of this Agreement (and, in that regard, to execute and deliver to the Company
such agreements and instruments as the Company reasonably may request to
evidence the same), and further acknowledges that the certificates evidencing
such Shares are required to have endorsed thereon a legend to the effect set
forth in Section 3 hereof; (v) in making such Holder's decision to invest in the
Registrable Securities, such Holder has relied upon independent investigations
made by such Holder and, to the extent believed by him or it to be appropriate,
has relied on investigations made by such Holder's representatives, including
such Holder's own legal, accounting, investment, financial, tax and other
professional advisors; (vi) such Holder has been furnished and has been afforded
an opportunity to review the Company's 1999 and 1998 audited financial
statements (the "FINANCIAL STATEMENTS"); and (vii) such Holder and such Holder's
purchaser representatives, as applicable, have been given the opportunity to
examine all documents, including the Financial Statements, and to ask questions
of, and to receive answers from, the Company and its representatives concerning
the terms of the Formation and such Holder's investment in the Shares.

                  (b) REPRESENTATION REGARDING PLANS OR INTENTIONS. Each holder
severally (and not jointly) represents, acknowledges and agrees that he, she or
it has no plan or intention to sell or otherwise dispose of any or all of such
Holder's Shares.

                  Section 3. LEGEND ON SHARE CERTIFICATES. Each certificate
representing the Shares shall have endorsed thereon a legend in substantially
the following form:

                  "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
         SECURITIES LAW, AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED
         OF IN THE ABSENCE OF SUCH REGISTRATION UNLESS PURSUANT TO AN AVAILABLE
         EXEMPTION THEREFROM. IN ALL CASES, SUCH SHARES MAY BE TRANSFERRED ONLY
         IN COMPLIANCE WITH THE CONDITIONS SPECIFIED IN THE REGISTRATION RIGHTS
         AGREEMENT DATED AS OF JUNE 15, 2000, AMONG THE COMPANY AND THE
         STOCKHOLDERS PARTY THERETO, A COPY OF WHICH IS

                                       4
<PAGE>

         AVAILABLE FOR INSPECTION AT THE PRINCIPAL EXECUTIVE OFFICES OF THE
         COMPANY AND WILL BE FURNISHED TO THE HOLDER HEREOF WITHOUT CHARGE, UPON
         WRITTEN REQUEST TO CHILES OFFSHORE INC., 11200 RICHMOND AVENUE, SUITE
         490, HOUSTON, TEXAS 77082, ATTENTION: SECRETARY."

                  Section 4. DEMAND REGISTRATION (a) NOTICES OF DEMAND
REGISTRATION. Subject to the terms and conditions of this Agreement, from and
after the date that is 180 days after the date of consummation of the Initial
Public Offering, Holders shall have the right to request, by notice in writing
to the Company, that the Company effect the registration of such number of
Registrable Securities, as specified by such Holder in the notice, on Form S-1
(or if the Company so determines and is eligible, Form S-2 or S-3, or any
successor form, if available) (a "DEMAND REGISTRATION"). The Company shall
promptly, but not later than 10 days after receipt of such notice, give written
notice of such proposed registration to all other Holders. Such other Holders
shall have the right, by written notice to the Company within 20 days after the
Company sends its notice, to elect to have included in such registration such of
their Registrable Securities as such Holders may request in such notice of
election.

                  (b) UNDERWRITER CUTBACK. If the underwriter managing the
offering determines that, because of marketing considerations, some or all of
the Registrable Securities requested to be registered by all Holders may not be
included in the offering, then all Holders who have requested Demand
Registration shall, subject to section 4(c), nevertheless be entitled to
participate in the registration pro rata based upon the number of Registrable
Securities requested to be included by each such Holder. In all such cases, the
Company shall include all Registrable Securities requested to be included in
such registration by Holders prior to the inclusion of any Registrable
Securities to be sold by the Company or any person other that a Holder.

                  (c) CERTAIN RESTRICTIONS ON DEMAND REGISTRATIONS. (i) Holders
of Registrable Securities will be entitled to request, as provided by Section 4
(a) hereof, no more than three (3) Demand Registrations. A registration will not
be considered for purposes of this Section 4 (c) to have been "requested" until
it has become effective.

                           (ii) The Company will not be obligated to effect any
Demand Registration or give any notice specified in Section 4 (a) hereof: (i)
within twelve (12) months after the effective date of a previous Demand
Registration pursuant to this Agreement, (ii) pursuant to a request for a Demand
Registration that does not constitute an Underwritten Offering, (iii) pursuant
to a request for Demand Registration in which less than $50 million of gross
proceeds, in the aggregate, are to be received upon the sale of Registrable
Securities or (iv) pursuant to a request for a Demand Registration by the
Holders of less than 25% of the Registrable Securities.

                  (d) LIMITATION ON SENIOR REGISTRATION RIGHTS. The Company will
not grant to any person (other than the Holders) rights to request the Company
to register any of its securities that are superior to or PARI PASSU with the
rights granted to the Holders

                                       5
<PAGE>

herein, without the prior written consent of the Holders of a majority of
Registrable Securities.

                  (e) SELECTION OF UNDERWRITERS. In the case of a Demand
Registration, which in all cases shall be an Underwritten Offering, the Holders
of a majority of the Registrable Securities to be included in such Demand
Registration will have the right to select the investment banker(s) and
manager(s) to administer and underwrite such Underwritten Offering, subject to
the Company's approval which will not be unreasonably withheld.

                  Section 5. BLACKOUT PERIODS. (a) The Company shall be entitled
to postpone and delay the registration of Registrable Securities and may require
that Holders immediately cease sales of shares pursuant to a Registration
Statement (a "BLACKOUT PERIOD") if (i) the Company is engaged or has publicly
announced plans to engage, within 30 days of the time of the request, in a
registered public offering in which the Holders may include Registrable
Securities pursuant to Section 6 hereof, or (ii) such registration would, in the
good faith judgment of the Board of Directors of the Company, require a
disclosure in the Registration Statement of material non-public information in
connection with a pending merger, reorganization, consolidation, or acquisition
or disposition of assets that the Company is not otherwise obligated to disclose
and that would be materially detrimental to the Company (a "VALID BUSINESS
REASON"), PROVIDED, HOWEVER, that: (i) the Company shall use reasonable best
efforts to minimize the length of any such period of delays or suspension, (ii)
the Company shall not be permitted to so delay or suspend the Registration
Statement for a period of more than 120 days in any 12 month period or for any
longer than such Valid Business Reason Exists, (iii) once a Registration
Statement has been filed prior to the giving of such notice the Company may
cause such Registration Statement to be withdrawn, however, once any
Registration Statement becomes effective, the Company may not cause its
effectiveness to be terminated and the Company may not postpone amending or
supplementing such Registration Statement and (iv) if the Company shall give any
notice of postponement or withdrawal of any Registration Statement, the Company
shall not, during the period of postponement or withdrawal, register any capital
stock of the Company, other than pursuant to a Registration Statement on Form
S-4 or S-8 (or an equivalent registration form then in effect).

                  (b) If the Company delays or suspends the Registration
Statement or requires the Holders to cease sales pursuant to Section 5(a), the
Company shall, as promptly as practicable following the termination of the
circumstance that entitled the Company to do so (but in no event later than 90
days after the date of the postponement), take such actions as may be necessary
to file or reinstate the effectiveness of such Registration Statement and give
written notice to all Holders authorizing them to resume sales pursuant to such
Registration Statement. If as a result thereof the prospectus included in such
Registration Statement has been amended to comply with the requirements of the
Securities Act, the Company shall enclose such revised prospectus with the
notice to Holders given pursuant to this paragraph, and the Holders shall make

                                       6
<PAGE>

no offers or sales of Registrable Securities pursuant to such Registration
Statement other than by means of such revised prospectus.

                  (c) If the Company shall postpone filing or shall withdraw any
Registration Statement filed under Section 5(a), the Company shall not be
considered to have effected an effective registration for the purposes of this
Section 5 until the Company shall have filed a new Registration Statement and
such Registration Statement shall have been declared effective and shall not
have been withdrawn and the Registrable Securities registered thereunder shall
have been sold pursuant thereto in accordance with the intended plan and method
of distribution therefor set forth in the final prospectus forming part of such
Registration Statement.

                  Section 6. PIGGYBACK REGISTRATION. (a) RIGHT TO PIGGYBACK.
Whenever the Company proposes to register any of its Common Stock under the
Securities Act (other than pursuant to the Initial Public Offering, a Demand
Registration or a registration statement on Form S-4 or Form S-8 or any similar
form or in connection with a registration the primary purpose of which is to
register Common Stock in connection with an acquisition or business combination
transaction or in connection with stock options and other stock-based employee
benefit plans and compensation) and the registration form to be used may also be
used for the registration of Registrable Securities (a "PIGGYBACK
REGISTRATION"), the Company shall give prompt written notice to all Holders of
Registrable Securities of its intention to effect such a registration and
subject to the terms and conditions of this agreement, shall include in such
registration in all Registrable Securities with respect to which the Company has
received written requests for inclusion therein within 20 days after its notice
is given.

                  (b) UNDERWRITING AGREEMENT. In connection with any
registration under this Section 6 involving an Underwritten Offering, the
Company shall not be required to include any Registrable Securities in such
registration unless the holders thereof accept the terms of an underwriting
agreement in customary form as agreed upon between the Company and the
underwriters selected by it; PROVIDED, HOWEVER, that no Holder shall be liable
for any information other than as is provided in writing by such Holder
expressly for use in the Registration Statement and, PROVIDED FURTHER, that no
Holder shall be required to provide general warranties regarding the business of
the Company.

                  (c) UNDERWRITING CUTBACK. If, in the opinion of the managing
underwriter, it is appropriate because of marketing considerations to limit the
number of Registrable Securities to be included in the offering either on behalf
of selling Holders or in the aggregate, then the Company shall be required to
include in the registration only that number of Registrable Securities that the
managing underwriter believes should be included therein, and the Holders who
have requested registration shall be entitled to participate in the registration
pro rata based upon the number of Registrable Securities requested to be
included by each such Holder; PROVIDED, HOWEVER, that the Company shall include
all Registrable Securities requested to be included in such registration by
Holders

                                       7
<PAGE>

prior to the inclusion of any Registrable Securities owned by any person other
than the Company.

                  (d) SELECTION OF UNDERWRITERS. If any Piggyback Registration
is an underwritten offering, the investment banker(s) and manager(s) for the
offering shall be selected by the Company.

                  Section 7. HOLDER LOCKUP. (a) INITIAL PUBLIC OFFERING LOCKUP.
Each of the Holders hereby agrees not to effect any public sale or distribution
(including sales pursuant to Rule 144) of Common Stock or any securities
convertible into or exchangeable or exercisable for Common Stock, during the
180-day period beginning on the date of the consummation of the Initial Public
Offering, unless the Company consents in writing to such sale or distribution.

                  (b) DEMAND REGISTRATION LOCKUP. Each of the Holders hereby
agrees not to effect any public sale or distribution (including sales pursuant
to Rule 144) of Shares, or any securities convertible into or exchangeable or
exercisable for such securities, during the seven days prior to, and the 180-day
period beginning on the effective date of, any Demand Registration (except as
part of such underwritten registration), unless the Company and the underwriters
managing the registered public offering otherwise consent in writing.

                  Section 8. REGISTRATION PROCEDURES. If and whenever the
Company is required by the provisions of this Agreement to effect the
registration of any of the Registrable Securities under the Securities Act, the
Company shall:

                  (a) prepare and file with the Commission a Registration
Statement with respect to such Registrable Securities and use its reasonable
best efforts to cause that Registration Statement to become and remain effective
for a period of 120 days (the "EFFECTIVE PERIOD") (the counting of such days
giving no effect to any period during which the holders of the Registrable
Securities were obligated to refrain from selling in accordance with the terms
of this Agreement);

                  (b) cause any registration statement filed pursuant to this
Agreement and the related prospectus and any amendment or supplement thereto, as
of the effective date of such registration statement, amendment or supplement,
(A) to comply in all material respects with the applicable requirements of the
Securities Act and the rules and regulations of the Commission promulgated
thereunder and (B) not to contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading;

                  (c) prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
with

                                       8
<PAGE>

such registration statement as may be necessary to keep such registration
statement effective and to comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities covered by such
registration statement during the Effective Period; the Company shall furnish to
each Holder a copy of any amendment or supplement to such registration statement
or prospectus prior to filing the same with the Commission and shall not file
any such amendment or supplement to which any such requesting Holder shall
reasonably have objected in writing on the grounds that such amendment or
supplement does not comply in all material respects with the requirements of the
Securities Act or of the rules or regulations thereunder or otherwise
inaccurately describes information pertaining to such Holder;

                  (d) furnish to each requesting Holder such number of conformed
copies of such registration statement and of each such amendment and supplement
thereto (in each case including all exhibits thereto), such number of copies of
the prospectus included in such registration statement (including each
preliminary prospectus), such number of the documents, if any, incorporated by
reference in such registration statement or prospectus, and such number of other
documents, as such requesting Holder reasonably may request;

                  (e) use its best efforts to register or qualify the
Registrable Securities covered by such registration statement under such
securities or "blue sky" laws of the states of the United States as each
requesting Holder reasonably shall request, to keep such registration or
qualification in effect for so long as such registration statement remains in
effect, and to do any and all other acts and things which may be necessary or
advisable to enable such requesting Holder to consummate the disposition in such
jurisdictions of his, her or its Registrable Securities covered by such
registration statement; PROVIDED HOWEVER, that the Company shall not for any
such purpose be required to qualify generally to do business as a foreign
corporation in any jurisdiction in which it is not and would not, but for the
requirements of this Section 8 (e), be obligated to be so qualified, or to
subject itself to taxation in any such jurisdiction, or to consent to general
service of process in any such jurisdiction;

                  (f) Promptly notify each Holder at any time when a prospectus
or prospectus supplement relating thereto is required to be delivered under the
Securities Act, upon discovery of the occurrence of any event as a result of
which the prospectus included in such registration statement, as then in effect,
includes an untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading, which
untrue statement or omission requires amendment of the registration statement or
supplementing of the prospectus and, at the request of such requesting Holder,
prepare and furnish to such requesting Holder a reasonable number of copies of a
supplement to such prospectus as may be necessary so that, as thereafter
delivered to the purchasers of such Registrable Securities, such prospectus
shall not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; PROVIDED, HOWEVER, that with

                                       9
<PAGE>

respect to Registrable Securities registered pursuant to such registration
statement, each Holder agrees that such Holder will not sell any Registrable
Securities pursuant to such registration statement during the time after the
furnishing of the Company's notice pursuant to this Section 8(f) while the
Company is preparing and filing with the Commission a supplement to or an
amendment of such prospectus or registration statement;

                  (g) use its best efforts to comply with all applicable rules
and regulations of the Commission, and make available to holders of its
securities, as soon as reasonably practicable, an earnings statement covering
the period of at least 12 months, but not more than 18 months, beginning with
the first month of the first fiscal quarter after the effective date of such
registration statement, which earnings statement shall satisfy the provisions of
Section 11(a) of the Securities Act; and

                  (h) provide and cause to be maintained a transfer agent and
registrar for the Registrable Securities covered by such registration statement
from and after a date not later than the effective date of such registration
statement; it being hereby agreed that each Holder of Registrable Securities
shall furnish to the Company such information regarding such Holder and the plan
and method of distribution of Registrable Securities intended by such Holder as
the Company may from time to time reasonably request in writing and as shall be
required by law or by the Commission in connection therewith.

                  (i) PREPARATION; REASONABLE INVESTIGATION. In connection with
the preparation and filing of each registration statement registering
Registrable Securities under the Securities Act as contemplated by this
Agreement, the Company shall give each Holder, its underwriters, if any, and
each Holder's counsel and accountants, the opportunity to review the Company's
preparation of such registration statement, each prospectus included in such
registration statement or filed with the Commission and each amendment or
supplement thereto, and the Company will give such person or persons such
reasonable access to the Company's books and records and such opportunities to
discuss the business of the Company with its officers and the independent public
accountants who have certified its financial statements as shall be necessary
for each such Holder and persons to conduct a reasonable investigation within
the meaning of Section 11 of the Securities Act. To minimize disruption and
expense to the Company during the course of the registration process, each
Holder shall use its reasonable best efforts to coordinate its investigation and
due diligence efforts and, to the extent practicable, will act through a single
firm of counsel and a single firm of accountants and, if requested by the
Company, will enter into confidentiality agreements with the Company in a form
satisfactory to the Company.

                  Section 9. INDEMNIFICATION. (a) INDEMNIFICATION BY THE
COMPANY. The Company shall indemnify and hold harmless each Holder of
Registrable Securities covered by any registration statement filed pursuant to
this Agreement, and any underwriter or selling agent selected by one or more
Holders with the consent of the Company with respect to such Registrable
Securities, the directors, trustees and officers, and each other person, if any,
who controls such Holder, underwriter or selling agent

                                       10
<PAGE>

within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act against any losses, claims, damages, liabilities or expenses (each
a "LOSS" and collectively "LOSSES"), joint or several, to which such Holder or
any such persons may become subject under the Securities Act or otherwise, to
the extent that such Losses (or related actions or proceedings) arise out of or
are based upon (A) any untrue statement or alleged untrue statement of any
material fact contained in an effective registration statement in which such
Registrable Securities were included for registration under the Securities Act,
any preliminary prospectus if used prior to the effective date of the
registration statement (unless such statement is corrected in the final
prospectus and the Company previously furnishes copies thereof to any Holder of
Registrable Securities seeking indemnification pursuant to this Section 9),
final prospectus (as supplemented, if the Company shall have filed with the
Commission any supplement thereto) if used during the period in which the
Company is required to keep the registration statement to which such prospectus
relates current and otherwise in compliance with Section 10(a) of the Securities
Act, or (B) any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading; PROVIDED,
HOWEVER, that the Company shall have no obligation to provide any
indemnification hereunder if any such Losses (or actions or proceedings in
respect thereof) arise out of or are based upon an untrue statement or alleged
untrue statement or omission or alleged omission made in such registration
statement, preliminary prospectus or final prospectus, as the case may be, in
reliance upon and in conformity with written information furnished to the
Company by such Holder for inclusion in such registration statement; and
PROVIDED, FURTHER, that the Company shall have no obligation to provide any
indemnification hereunder if any such Losses arise out of or are based upon an
untrue statement or alleged untrue statement or omission or alleged omission in
any preliminary prospectus, if such untrue statement or alleged untrue statement
or omission or alleged omission shall have been corrected in the final
prospectus and such Holder or any such other person shall have failed to deliver
such final prospectus prior to or concurrently with the sale of the Registrable
Securities covered by a registration statement to the individual or entity
asserting such Losses after the Company shall have furnished each such Holder or
any such other person with a sufficient number of copies thereof in a manner and
at a time sufficient to permit delivery of the same. The indemnity provided in
this Section 9(a) shall remain in full force and effect regardless of any
investigation made by or on behalf of such Holder or any such other person and
shall survive the transfer of the Registrable Securities by such Holder or any
such other person.

                  (b) INDEMNIFICATION BY THE HOLDERS. Each Holder and each other
person who controls such Holder within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, shall indemnify and hold
harmless (in the same manner and to the same extent as set forth in Section 9
(a) hereof) the Company, each director of the Company, each officer of the
Company who shall sign such registration statement and each other person, if
any, who controls the Company within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act, with respect to any untrue statement in
or omission from any registration statement filed by the Company

                                       11
<PAGE>

pursuant to this Agreement, any preliminary prospectus or any final prospectus
included in such registration statement, or any amendment or supplement to such
registration statement or prospectus, as the case may be, of a material fact if
such statement or omission was made in reliance upon and in conformity with
written information furnished to the Company or any of its representatives by
such Holder or such other person, if any, who controls such Holder within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
for inclusion in such registration statement, preliminary prospectus or final
prospectus, as the case may be.

                  (c) NOTICE OF CLAIMS, ETC. Promptly after receipt by an
indemnified party of notice of the commencement of any action or proceeding (an
"ACTION") involving a claim referred to in Sections 9(a) and 9(b) hereof, such
indemnified party shall, if indemnification is sought against an indemnifying
party, give written notice to the indemnifying party of the commencement of such
action; PROVIDED, HOWEVER, that the failure of any indemnified party to give
said notice shall not relieve the indemnifying party of its obligations under
Sections 9(a) or 9(b) hereof, except to the extent that the indemnifying party
is actually and materially prejudiced by such failure. In case an Action is
brought against any indemnified party, and such Action notifies an indemnifying
party of the commencement thereof, the indemnifying party shall be entitled to
participate therein and, to the extent it may elect by written notice delivered
to the indemnified party promptly after receiving the aforesaid notice, to
assume the defense thereof with counsel reasonably satisfactory to such
indemnified party. Notwithstanding the foregoing, the indemnified party shall
have the right to employ its own counsel in any such case, but the fees and
expenses of such counsel shall be at the expense of such indemnified party,
unless (A) the employment of such counsel shall have been authorized in writing
by the indemnifying party, (B) the indemnifying party shall not have employed
counsel (reasonably satisfactory to the indemnified party) to take charge of the
defense of such Action, within a reasonable time after notice of the
commencement thereof, or (C) such indemnified party reasonably shall have
concluded that there may be defenses available to it which are different from or
additional to those available to the indemnifying party which, if the
indemnifying party and the indemnified party were to be represented by the same
counsel, could result in a conflict of interest for such counsel or materially
prejudice the prosecution of the defenses available to such indemnified party.
If any of the events specified in clauses (A), (B) or (C) of the preceding
sentence shall have occurred or otherwise shall be applicable, then the fees and
expenses of one counsel (or firm of counsel) selected by a majority in interest
of the indemnified parties (measured by reference to their ownership of
Registrable Securities) shall be borne by the indemnifying party. If, in any
case, the indemnified party employs separate counsel, the indemnifying party
shall not have the right to direct the defense of such action on behalf of the
indemnified party. Anything in this Section 9(c) to the contrary
notwithstanding, an indemnifying party shall not be liable for the settlement of
any action effected without its prior written consent (which consent in the case
of an action exclusively seeking monetary relief shall not unreasonably be
withheld or delayed) or if there be a final judgment adverse to the indemnified
party, the indemnifying party agrees to indemnify the indemnified party from and
against any loss or liability by reason of such settlement

                                       12
<PAGE>

or judgment. No indemnifying party shall, without the prior consent of the
indemnified party, consent to entry of any judgment or enter into any settlement
which does not include as a term thereof the unconditional release of the
indemnified party from all liability in respect of such claim or litigation.

                  (d) CONTRIBUTION. If the indemnification provided for in this
Section 9 is unavailable or insufficient to hold harmless an indemnified party
in respect of any Losses, then each indemnifying party shall, in lieu of
indemnifying such indemnified party, contribute to the amount paid or payable by
such indemnified party, as a result of such Losses in such proportion as
appropriate to reflect the relative fault of the Company, on the one hand, and
the indemnified party, on the other hand, and to the parties' relative intent,
knowledge, access to information and opportunity to correct or mitigate the
damage in respect of or prevent any untrue statement or omission giving rise to
such indemnification obligation. The Company and each Holder agree that it would
not be just and equitable if contributions pursuant to this Section 9(d) were
determined by pro rata allocation or by any other method of allocation which did
not take account of the equitable considerations referred to above. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who is not
guilty of such fraudulent misrepresentation.

                  (e) INDEMNIFICATION PAYMENTS. Periodic payments of amounts
required to be paid pursuant to this Section 9 shall be made during the course
of the investigation or defense, as and when reasonably itemized bills therefor
are delivered to the indemnifying party in respect of any particular Loss,
damage or liability that is incurred.

                  (f) LIMITATION ON SELLER'S PAYMENTS. Notwithstanding any
provision of this Agreement to the contrary, the liability of each Holder of
Registrable Securities under this Section 9 shall in no event exceed the net
proceeds received by such Holder from the sale of Registrable Securities covered
by the registration statement giving rise to such liability.

                  (g) ADJUSTMENT OF LIABILITY. Any indemnifiable Loss under this
Section 9 shall be reduced by any tax benefit accruing to the indemnified party
on account of the indemnification payment and by the amounts actually recovered
by the indemnified party from its insurance carriers in respect of such Loss,
and any amounts recovered by such party subsequent to the payment by the
indemnifying party hereunder with respect to the same claim shall be remitted to
such indemnifying party, except that such remittance shall not exceed the amount
of the indemnification payment made by such indemnifying party.

                  Section 10. REGISTRATION EXPENSES. The Company shall bear all
Registration Expenses incurred in connection with the performance of its
obligations under Section 4 and Section 6 of this Agreement.

                                       13
<PAGE>

                  Section 11. RULE 144. The Company shall comply with the
requirements of Rule 144(c) under the Securities Act, as such Rule may be
amended from time to time (or any similar rule or regulation hereafter adopted
by the Commission), regarding the availability of current public information to
the extent required to enable each Holder to sell Registrable Securities without
registration under the Securities Act pursuant to the resale provisions of Rule
144 (or any similar rule or regulation). Upon the request of a Holder, the
Company will deliver to such Holder a written statement as to whether it has
complied with such requirements and, upon a Holder's compliance with the
applicable provisions of Rule 144, will take such action as may be required
(including, without limitation, causing legal counsel to issue an appropriate
opinion) to cause its transfer agent to effectuate any transfer of Registrable
Securities properly requested by such Holder, in accordance with the terms and
conditions of Rule 144.

                  Section 12. AMENDMENTS AND WAIVERS. (a) Except as otherwise
provided herein, this Agreement may be amended or modified and the Company may
take any action herein prohibited, or omit to perform any act herein required to
be performed by it, only if the Company shall have obtained the written consent
to such amendment, modification, action or omission to act, of Holders of a
majority of the Registrable Securities. Each Holder shall be bound by any
consent authorized by this Section 6, whether or not such Registrable Securities
shall have been marked to indicate such consent.

                  (b) Notwithstanding the provisions of Section 12(a), this
Agreement may be amended by the Company from time to time to reflect changes in
the parties hereto, their holdings of Common Stock and related information.

                  Section 13. NOTICES. All notices, communications and
deliveries required or permitted by this Agreement shall be made in writing
signed by the party making the same, shall specify the Section of this Agreement
pursuant to which it is given or being made and shall be deemed given or made
(i) on the date delivered if delivered by telecopy or in person, (ii) on the
third Business Day after it is mailed if mailed by registered or certified mail
(return receipt requested) (with postage and other fees prepaid) or (iii) on the
day after it is delivered, prepaid, to an overnight express delivery service
that confirms to the sender delivery on such day, as follows:

                  (a) if to the Holders, at their respective addresses listed on
the books and records of the Company; and

                  (b) if to the Company, at 11200 Richmond Avenue, Suite 490,
Houston, Texas 77082, Attention: Mr. Dick H. Fagerstal;

or to such other representative or at such other address of a party as such
party hereto may furnish to the other parties in writing. If notice is given
pursuant to this Section 13 of any assignment to a permitted successor or assign
of a party hereto, the notice shall be given as set forth above to such
successor or assign of such party.

                                       14
<PAGE>

                  Section 14. SECRETARY TO RETAIN COPY. A copy of this
Agreement, including all Exhibits hereto, shall be filed with the Secretary of
the Company, and the Secretary shall make it available to each Holder of
Registrable Securities at all reasonable times during normal business hours.

                  Section 15. ENTIRE AGREEMENT. This Agreement embodies the
entire agreement and understanding between the Company and each Holder in
respect of the subject matter contained herein. This Agreement supersedes all
prior agreements and understandings between the parties with respect to the
subject matter of this Agreement.

                  Section 16. GOVERNING LAW. This Agreement shall be governed by
and construed in accordance with the internal laws of the State of New York
(other than its rules of conflicts of laws to the extent the application of the
laws of another jurisdiction would be required thereby).

                  Section 17. SEVERABILITY. If any provision of this Agreement
or the application thereof to any person or circumstances is determined by a
court of competent jurisdiction to be invalid, void or unenforceable, the
remaining provisions hereof, or the application of such provision to persons or
circumstances other than those as to which it has been held invalid or
unenforceable, shall remain in full force and effect and shall in no way be
affected, impaired or invalidated thereby, so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
adverse to any party. Upon such determination, the parties shall negotiate in
good faith in an effort to agree upon a suitable and equitable substitute
provision to effect the original intent of the parties.

                  Section 18. TERMINATION. The rights and obligations under this
Agreement shall automatically terminate upon the earlier to occur of (a) all
Shares issued to the Holders pursuant in connection with the formation cease to
be Registrable Securities and (b) the end of the Effective Period, as the same
may be extended pursuant to the terms of this Agreement.

                  Section 19. MISCELLANEOUS. The Company shall not after the
date of this Agreement enter into any agreement with respect to the Common Stock
which violates the rights granted to each Holder in this Agreement without the
requisite consent of Holders of Registrable Securities as provided herein. The
headings in this Agreement are for purposes of reference only and shall not
limit or otherwise affect the meaning of this Agreement. This Agreement may be
executed in any number of counterparts, each of which shall be deemed to be an
original, but all of which, when taken together, shall constitute one and the
same instrument.

                                       15
<PAGE>

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

                               CHILES OFFSHORE LLC

                               By:      /s/ Dick Fagerstal
                                        --------------------------------
                                        Name: Dick Fagerstal
                                        Title: Senior Vice President and
                                        Chief Financial Officer

                  Each person below has agreed to be bound to the terms of this
Registration Rights Agreement pursuant to each person having signed a Consent
and Amendment, dated June 15, 2000:

Catherine Chen
Jay Stein
Charles Fabrikant
Bova Trading Inc.
Andrew Richards
Laura Beusch
Freda Blackwell McKeand
Castor Transport Limited
Northern Navigation International Ltd.
Larry Rochlin Revocable Trust
A.R.E. Investment Partnership
Abraham Rochlin Enterprises, Inc.
Gordon T. Hall
Dustin Ziegler
Robert and Susan Semmens
Rome Arnold
Franz L. and Anne R. Boschwitz Family Trust
P. Oppenheimer Investment Partnership
Oppenheimer-Close Investment Partnership
Fornost LLC
Peter and Jane Strasser
John U. Beusch
Jesse M. Brill and Lauren C. Brill
Norman McCall
Jan Carole Benjamin
Emily Stein Benjamin
Jack C. Benjamin
Walter J. Weadock
Ira Alpert

<PAGE>

Norman S. Benzaquen
John Colton
Albert A. Sibony
Jack C. Benjamin, Jr.
Jeffrey A. Stein
J. Andrew Stein
BBT Tradeships LLC
Alabama Oil Purchasing Inc. Retirement Plan & Trust
Warren B. Pack
South Street Capital, L.P.
Windcrest Partners
Irwin Lieber
Andrew Fingerhut
Barry Fingerhut
Seth Lieber
Wheatley Partners LP
Wheatley Foreign Investments Inc.
Fingerhut, Marocco, Senchak
Cheryl Beusch
Jonathan B. Fairbanks
John M. Hennessy
Jonathan C. Lieber
Brooke Fingerhut
Alan N. Locker
Allen H. Brill
Karen Fleiss
Robert E. Ettle and Mary V. Ettle
Jan Loeb
Woodland Partners
Brookwood Partners L.P.
Gay S. Block
Peggy Bennet
Joseph Stein Jr.
Bassoe Rigs Partners Ltd.
Erland P. Bassoe
Martin R. Gold
Felicia Choi
COI, LLC
Timothy J. McKeand
Edward G. Pierot
Barry M. Lewis
Richard and Shannon Fairbanks Grantor Retained Annuity Trust
Richard M. Fairbanks
Susan Cohen
Itzhak Perlman

                                       2

<PAGE>

Toby Perlman
Allen J. Becker
Robert Pierot
Anthony R. Jones
George Asch GRAT
George Asch
Charlene Furman
Phyllis E. Asch
Phyllis E. Asch GRAT
Mary A. Faccio
Andrew George Strachan
Milton R. Rose and Jill O. Rose
Matthew Weber
Christine Blank
Randall Blank
SEACOR Offshore Rigs

                                       3

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