Document:

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                                CHANGE IN CONTROL
                                    AGREEMENT

THIS AGREEMENT is made as of the 14th day of March, 2005 by and between
McDermott International, Inc., a corporation duly organized under the laws of
the Republic of Panama (the "Company") and John T. Nesser III ("Executive".)

In consideration of the mutual covenants and agreements contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are
hereby expressly acknowledged, the parties hereto agree as follows:

I.    Obligations of the Company Upon Termination of Executive After Change In
      Control. Following the Effective Date of a Change In Control, in the event
      Executive's employment by the Company is terminated before the one-year
      anniversary of the Effective Date of a Change In Control either (i) by the
      Company for any reason other than Cause, or (ii) by the Executive for Good
      Reason, then subject to the provisions of paragraph (b) below, the Company
      shall:

            (a)   Pay to the Executive within thirty days after the date of
                  termination of Executive's employment (or such earlier time as
                  may be required by law) the Accrued Benefits;

            (b)   In the event that a bonus is paid after the date of
                  Executive's termination of employment under the Company's
                  Executive Incentive Compensation Plan ("EICP") for the year
                  prior to the year in which the termination takes place (the
                  "Measurement Period"), pay to the Executive in a lump sum, at
                  the same time such bonus is paid to other EICP participants, a
                  cash bonus equal to the product of the multiplier used for
                  Executive Vice Presidents and Executive's annual base salary
                  for the Measurement Period.

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            (c)   Pay to Executive in a lump sum in cash within thirty days
                  after the date of termination of Executives employment a
                  payment equal to the product of Executive's target bonus under
                  EICP for the year in which the termination takes place and a
                  fraction, the numerator of which is the number of days that
                  have elapsed in the year in which the termination takes place
                  through the date of termination of Executive's employment and
                  the denominator of which is 365.

            (d)   Pay to Executive in a lump sum in cash as soon as
                  administratively practicable after the date of termination of
                  Executive's employment 200% of the sum of (1) Executive's
                  annual base salary as in effect immediately prior to the date
                  of termination of Executive's employment, and (2) Executive's
                  target bonus under EICP for the year in which the termination
                  takes place.

            (e)   In the event that it is determined that any payment or
                  distribution of any type to or for the benefit of the
                  Executive made by the Company, by any of its affiliates, by
                  any person who acquires ownership or effective control or
                  ownership of a substantial portion of the Company's assets
                  (within the meaning of section 280G of the Internal Revenue
                  Code of 1986, as amended, and the regulations thereunder (the
                  "Code")) or by any affiliate of such person, whether paid or
                  payable or distributed or distributable pursuant to the terms
                  of this Agreement or otherwise (the "Total Payments") would be
                  subject to the excise tax imposed by Section 4999 of the Code
                  (the "Excise Tax"), then the Executive shall be entitled to
                  receive an additional payment (an "Excise Tax Restoration
                  Payment") in an amount that shall fund the payment by the
                  Executive of any Excise Tax on the Total Payments as well as
                  all income taxes imposed on the Excise Tax Restoration
                  Payment, and any Excise Tax imposed on the Excise Tax
                  Restoration Payment.

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II.   Participation In Other Company Programs.

      Nothing in this Agreement shall prevent or limit Executive's continuing or
      future participation in any plan, program, policy or practice provided by
      the Company for which Executive may qualify, nor, subject to paragraph (d)
      of Section X, shall anything herein limit or otherwise affect such rights
      as Executive may have under any contract or agreement with the Company.
      Amounts which are vested benefits or which Executive is otherwise entitled
      to receive under any plan, policy, practice or program of or any contract
      or agreement with the Company at or subsequent to the date of termination
      of Executive's employment shall be payable in accordance with such plan,
      policy, practice or program or contract or agreement except as explicitly
      modified by this Agreement. Notwithstanding the foregoing, it is expressly
      understood and acknowledged by Executive that any payment by the Company
      under Section I hereof shall be in lieu of any obligation on the part of
      the Company for payment of severance benefits under the Severance Plan for
      Employees of McDermott Incorporated and Participating Subsidiary and
      Affiliated Companies or any successor thereto or any other plan, policy or
      agreement of the Company in the event of termination of Executive's
      employment as provided in Section I hereof with the Company during the
      one-year period following the Effective Date of a Change In Control.

III.  Confidential and Proprietary Information.

      Executive acknowledges and agrees that any and all non-public information
      regarding the Company, any of its Subsidiaries and its or their customers
      (including but not limited to any and all information relating to its or
      their business practices, products, services, finances, management,
      strategy, profits and overhead) is confidential and the unauthorized
      disclosure of such confidential information will result in irreparable
      harm to the Company. Executive shall not, during his employment by the
      Company or any of its Subsidiaries and for a period of five years after
      termination of such employment (or such shorter period as may be required
      by law), disclose or permit the

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      disclosure of any such confidential information to any person other than
      an employee of the Company or its Subsidiaries or an individual engaged by
      the Company or its Subsidiaries to render professional services to the
      Company or its Subsidiaries under circumstances that require such person
      to maintain the confidentiality of such information, except as such
      disclosure may be required by law. The provisions of this Section III
      shall survive any termination of this Agreement. For purposes of this
      Section III, the term "confidential information" shall not include
      information that was or becomes generally available to the public other
      than as a result of disclosure by Executive. Executive acknowledges that
      the execution of this Agreement and the payments described in Section I
      herein constitute consideration for the limitations on activities set
      forth in this Section III, the adequacy of which is hereby expressly
      acknowledged by Executive. Executive understands and agrees that the
      Company shall suffer irreparable harm if Executive breaches Section III
      hereof, and that monetary damages shall be inadequate to address any such
      breach. Accordingly, Executive agrees that the Company shall have the
      right, to the extent permitted by applicable law, and in addition to any
      other rights or remedies it may have, to obtain from any court of
      competent jurisdiction, injunctive relief to restrain any breach or
      threatened breach hereof or otherwise to specifically enforce the
      provisions hereof.

IV.   Notices.

      All notices and other communications provided for by this Agreement shall
      be in writing and shall be deemed to have been duly given when (a)
      delivered by hand, (b) sent by facsimile or email to the facsimile number
      or email address given below, provided that a copy is also sent by a
      nationally recognized overnight delivery service, (c) the day after being
      sent by a nationally recognized overnight delivery service, or (d) three
      days after being mailed by United States Certified Mail, return receipt
      requested, postage prepaid, addressed as follows:

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                  If to Executive:  John T. Nesser III
                                    11400 Dunbeath
                                    Houston, TX 77024

                        Email:      jtnesser@mcdermott.com

                        Facsimile:  281-870-5015

                  If to the Company:

                        McDermott International, Inc.

                        c/o         Louis J. Sannino
                                    Executive Vice President, Human Resources
                                    757 N. Eldridge Parkway
                                    Houston, TX 77079

                        Email:      ljsannino@mcdermott.com

                        Facsimile:  281-870-5095

      or to such other address as any party may have furnished to the other in
      writing in accordance with this Agreement.

V.    Governing Law.

      The provisions of this Agreement shall be interpreted and construed in
      accordance with, and enforcement may be made under, the law of the State
      of Texas without reference to principles of conflict of laws.

VI.   Successors and Assigns.

      (a)   This Agreement is personal to Executive and, without the prior
            written consent of the Company, shall not be assignable by Executive
            otherwise than by will or the laws of descent and distribution.

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      (b)   This Agreement shall be binding upon and shall inure to the benefit
            of the Company and its successors and assigns.

      (c)   The Company will require that any successor to all or substantially
            all of its business and/or assets (whether such successor acquires
            such business and/or assets directly or indirectly, and whether by
            purchase, merger, consolidation or otherwise) expressly assume and
            agree to perform this Agreement in the same manner and to the same
            extent that the Company would be required to perform it if no such
            succession had taken place. As used in this Agreement, "Company"
            shall mean the Company as herein defined and any successor to its
            business and/or assets.

VII.  Employment by Subsidiaries.

      If Executive is not employed by McDermott International, Inc., but is only
      employed by one or more Subsidiaries of McDermott International, Inc.,
      then (a) the "Company" as defined herein shall be deemed to include such
      Subsidiary or Subsidiaries, and (b) termination of employment shall be
      determined with reference to Executive's employment by all such
      Subsidiaries. Further, the Company agrees that it will perform its
      obligations hereunder without regard to whether Executive is employed by
      the Company or by a Subsidiary or Subsidiaries of the Company.

VIII. Severability.

      If any provision or portion of this Agreement shall be determined to be
      invalid or unenforceable for any reason, the remaining provisions of this
      Agreement shall be unaffected thereby and shall remain in full force and
      effect to the fullest extent permitted by applicable law.

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IX.   Entire Agreement; Amendment.

      This Agreement sets forth the entire Agreement of the parties hereto and
      supersedes all prior agreements, understandings and covenants between the
      parties with respect to the subject matter hereof. Except as provided in
      Section X, paragraphs (d) and (f) or Section XI, this Agreement may be
      amended or terminated only by mutual agreement of the parties in writing.

X.    Miscellaneous.

      (a)   The captions and headings of this Agreement are not part of the
            provisions hereof and shall have no force or effect.

      (b)   The Company shall be entitled to withhold from any amounts payable
            under this Agreement such Federal, state, local, foreign or excise
            taxes as shall be required or permitted to be withheld pursuant to
            any applicable law or regulation.

      (c)   Executive's or the Company's failure to insist upon strict
            compliance with any provision of this Agreement or the failure to
            assert any right Executive or the Company may have hereunder,
            including, without limitation, the right of Executive to terminate
            employment for Good Reason pursuant to paragraph (g) of Section XII
            of this Agreement, shall not be deemed to be a waiver of such
            provision or right or any other provision or right of this
            Agreement.

      (d)   Executive and the Company acknowledge that, except as may otherwise
            be provided under any other written agreement between Executive and
            the Company, the employment of Executive by the Company is "at will"
            and, subject to the last sentence of paragraph (f) of Section XII
            hereof, Executive's employment may be terminated by either Executive
            or the Company at any time prior to the Effective Date of a Change
            In Control, in which case this

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            Agreement shall terminate as provided in Section XI below and
            Executive shall have no further rights under this Agreement.

      (e)   For purposes of this Agreement, the date of termination of
            Executive's employment shall be: (i) if Executive's employment is
            terminated by the Company for Cause, the date on which the Company
            delivers to Executive the resolution referred to in the last
            sentence of Section XII, paragraph (c), or, with respect to a
            termination under Section XII, paragraph (c)(iii), the date on which
            the Company notifies Executive of such termination, (ii) if
            Executive's employment is terminated by the Company because of
            Executive's Disability or for a reason other than Cause or
            Executive's death or Disability, the date on which the Company
            notifies Executive of such termination, (iii) if executive's
            employment is terminated by Executive for Good Reason, the date on
            which Executive notifies the Company of such termination (after
            having given the Company notice and a thirty-day cure period), or
            (iv) if Executive's employment is terminated by reason of death, the
            date of death of executive.

      (f)   The Company may terminate this Agreement at any time prior to a
            Change In Control upon giving Executive written notice of such
            termination at least thirty days prior to the date of termination if
            either of the following circumstances take place: (i) Executive's
            position with the Company is changed so that he ceases to be an
            officer of the Company, or (ii) Executive ceases to be a fulltime
            employee; provided that if a Change In Control is announced or
            occurs during such thirty-day period, the termination shall not be
            effective.

      (g)   This Agreement may be executed in two counterparts, each of which
            shall be deemed an original and together shall constitute one and
            the same agreement, with one counterpart being delivered to each
            party hereto.

      (h)   In the event the Executive's employment is terminated following the
            Effective Date of a Change In Control and before the one-year
            anniversary of the

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            Effective Date of a Change In Control (i) by the Company for Cause
            or an a result of Executive's death or disability, or (ii) by
            Executive without Good Reason, Executive shall not be entitled to
            the payments described in Section 1 hereof.

XI.   Term.

      This Agreement shall terminate on the earliest to occur of (i) termination
      by the Company in accordance with Section X, paragraph (f) above, (ii) the
      date one year after the Effective Date of a Change or Control, or (iii)
      the date on which Executive's employment with the Company is terminated
      (subject to the last sentence of Section XII, paragraph (g)); provided,
      however, that if Executive's employment with the Company is terminated
      under any of the circumstances described in Section I hereof, Executive's
      rights hereunder shall continue following the termination of his/her
      employment with the Company until all benefits to which Executive is
      entitled hereunder has been paid and the Company's rights hereunder shall
      continue until all obligations owed to it hereunder have been satisfied.

XII.  Definitions.

      For purposes of this Agreement, the following terms shall have the
      meanings given them in this Section XII.

      (a)   "Accrued Benefits" shall mean:

            (i)   Any portion of Executive's Annual Base Salary earned through
                  the date of termination of Executive's employment and not yet
                  paid;

            (ii)  Reimbursement for any and all amounts advanced in connection
                  with Executive's employment for reasonable and necessary
                  expenses incurred by Executive through the date of termination
                  of Executive's

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                  employment in accordance with the Company's policies and
                  procedures on reimbursement of expenses;

            (iii) Any earned vacation pay not theretofore used or paid in
                  accordance with the Company's policy for payment of earned and
                  unused vacation time; and

            (iv)  All other payments and benefits to which Executive may be
                  entitled under the terms of any applicable compensation
                  arrangement or benefit plan or program of the Company that do
                  not specify the time of distribution; provided that Accrued
                  Benefits shall not include any entitlement to severance under
                  any severance policy of the Company generally applicable to
                  the salaried employees of the Company.

      (b)   "Annual Base Salary" shall mean Executive's annual rate of pay
            excluding all other elements of compensation such as, without
            limitation, bonuses, perquisites, expatriate or hardship premiums,
            restricted stock awards, stock options and retirement and welfare
            benefits.

      (c)   "Cause" shall mean:

            (i)   the willful and continued failure of Executive to perform
                  substantially his/her duties with the Company (occasioned by
                  reason other than physical or mental illness or disability of
                  Executive) after a written demand for substantial performance
                  is delivered to Executive by the Compensation Committee of the
                  Board or the Chief Executive Officer of the Company which
                  specifically identifies the manner in which the Compensation
                  Committee of the Board or the Chief Executive Officer believes
                  that Executive has not substantially performed his/her duties,
                  after which Executive shall have thirty days to defend or
                  remedy such failure to substantially perform his/her duties:

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            (ii)  the willful engaging by Executive in illegal conduct or gross
                  misconduct which is materially and demonstrably injurious to
                  the Company; or

            (iii) the conviction of Executive with no further possibility of
                  appeal or, or plea of nolo contendere by Executive to, any
                  felony.

            The cessation of employment of Executive under subparagraph (i) and
            (ii) above shall not be deemed to be for "Cause" unless and until
            there shall have been delivered a Executive a copy of a resolution
            duly adopted by the affirmative vote of not less than three-quarters
            (3/4) of the entire membership of the Compensation Committee of the
            Board at a meeting of such Committee called and held for such
            purpose (after reasonable notice is provided to Executive and
            Executive is given an opportunity, together with counsel, to be
            heard before the Compensation Committee of the Board), finding that,
            in the good faith opinion of the Compensation Committee of the
            Board, Executive is guilty of the conduct described in subparagraph
            (i) or (ii) above, and specifying the particulars thereof in detail.

      (d)   "Change In Control" shall be deemed to occur if:

            (i)   When any "person" or "group" of persons (as such terms are
                  used in Section 13 and 14 of the Securities Exchange Act of
                  1934, as amended from time to time (the "Exchange Act")),
                  other than the Company or any employee benefit plan sponsored
                  by the Company, becomes the "beneficial owner" (as such term
                  is used in Section 13 of the Exchange Act) of 25 percent or
                  more of the total number of the Company's common shares at the
                  time outstanding; or

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            (ii)  of the approval by the vote of the Company's stockholders
                  holding at least 50 percent (or such greater percentage as may
                  be required by the Certificate of Incorporation or Bylaws of
                  the Company or by law) of the voting stock of the Company of
                  any merger, consolidation, sales of assets, liquidation or
                  reorganization in which the Company will not survive as a
                  publicly owned corporation or;

            (iii) when the individuals who, at the beginning of any period of
                  two years or less, constituted the Board of Directors of the
                  Company cease, for any reason, to constitute at least a
                  majority thereof, unless the election or nomination for
                  election of each new director was approved by the vote of at
                  least a majority of the directors then still in office who
                  were directors at the beginning of such period.

            A Change In Control shall not result from any transaction
            precipitated by the Company's insolvency, appointment of a
            conservator or determination by a regulatory agency that the Company
            is insolvent.

      (e)   "Disability" shall mean circumstances that qualify Executive for
            long-term disability benefits under the Company's Long-Term
            Disability Plan as in effect immediately prior to the Change In
            Control.

      (f)   "Effective Date" with respect to a Change In Control for purposes of
            this Agreement shall be the earliest to occur of (i) the date on
            which the Company receives a copy of a Schedule 13D disclosing
            beneficial ownership of shares in accordance with Section XII,
            paragraph (d)(i) above; (ii) the effective date of the consummation
            of a merger, consolidation, share exchange or similar form of
            corporate transaction or liquidation or reorganization in accordance
            with Section XII, paragraph (d)(ii); or (iii) the date of the annual
            or special meeting of shareholders at which the last director
            necessary to meet the requirements of Section XII, paragraph
            (d)(iii) is elected. Upon the occurrence of the Effective

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            Date of a Change In Control, the Board of Directors or its designee
            shall, within thirty days thereof, provide written notice to
            Executive of the Effective Date of the Change In Control.
            Notwithstanding anything to the contrary in this Agreement, if a
            Change In Control occurs and if Executive's employment with the
            Company is terminated within the ninety days prior to the Effective
            Date of the Change In Control as determined in accordance with the
            first sentence of this paragraph (f), and if it is reasonably
            demonstrated by Executive that such termination of employment was at
            the request of a third party who has taken steps reasonably
            calculated to effect a Change In Control, or otherwise arose in
            connection with or in anticipation of a Change In Control, then for
            all purposes of this Agreement, the "Effective Date" of the Change
            In Control shall mean the date immediately prior to the date of such
            termination of employment.

      (g)   "Good Reason" shall mean:

            (i)   the assignment to Executive of duties that are materially
                  inconsistent with Executive's position, authority, duties or
                  responsibilities immediately prior to the Change In Control,
                  or any other action by the Company which results in a material
                  diminution in such position, authority, duties or
                  responsibilities;

            (ii)  requiring Executive, without his consent, to be based at any
                  office or location other than the office or location a which
                  Executive was employed immediately prior to the Change In
                  Control; provided, however, that any such relocation requests
                  shall not be grounds for resignation with Good Reason if such
                  relocation is within a twenty-mile radius of the location at
                  which Executive was based prior to the Effective Date of a
                  Change In Control;

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            (iii) a reduction in Executive's Annual Base Salary in effect
                  immediately prior to the Change In Control or a reduction in
                  the target multiplier used to calculate the annual bonus
                  awarded to Executive below the target multiplier used to
                  calculate the bonus paid to Executive under the EICP
                  immediately prior to the Change In Control, provided, however
                  that in either case a reduction in the Annual Base Salary or
                  the target bonus multiplier shall not be considered "Good
                  Reason" with respect to any year for which such reduction is
                  part of a reduction uniformly applicable to all similarly
                  situated employees;

            (iv)  a change in Executive's eligibility to participate in
                  incentive compensation plans as in effect immediately prior to
                  the Change In Control; or

            (v)   any material breach of this Agreement by the Company,
                  excluding for this purpose an isolated, insubstantial or
                  inadvertent action not taken in bad faith and which is
                  remedied by the Company promptly after receipt of notice
                  thereof given by Executive.

            Upon the occurrence of any of the events described above, Executive
            shall give the Company written notice that such event constitutes
            Good Reason and the Company shall thereafter have thirty days in
            which to cure. If the Company has not cured in that time, the event
            shall constitute Good Reason.

      (h)   "Subsidiaries" shall mean every, limited liability company,
            partnership or other entity of which 50% or more of the total
            combined voting power of all classes of voting securities or other
            equity interests is owned, directly or indirectly, by McDermott
            International, Inc.

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XIII. Arbitration

      Any controversy or claim arising out of or relating to this Agreement (or
      the breach thereof) shall be settled by final and binding arbitration in
      Houston, Texas by one arbitrator selected in accordance with the
      Commercial Arbitration Rules (the "Rules") of the American Arbitration
      Association (the "Association") then in effect. Subject to the following
      provisions, the arbitration shall be conducted in accordance with the
      Rules then in effect. Any award entered by the arbitrator shall be final
      and binding, and judgment may be entered thereon by any party hereto in
      any court of law having competent jurisdiction. This arbitration provision
      shall be specifically enforceable. The Company and the Executive shall
      each pay half of the administrative fees of the Association and the
      compensation of the arbitrator and shall each be responsible for its or
      his/her own attorney's fees and expenses relating to the conduct of the
      arbitration.

IN WITHNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first above written.

                                        McDERMOTT INTERNATIONAL, INC.

                               By:      ___________________________________

                               Printed Name:   Bruce W. Wilkinson

                               Title:   Chief Executive Officer

                               Date:    ___________________________________

                               Executive: _________________________________

                               Date:     __________________________________

                                       15<PAGE>

                                CHANGE IN CONTROL
                                    AGREEMENT

THIS AGREEMENT is made as of the 14th day of March, 2005 by and between
McDermott International, Inc., a corporation duly organized under the laws of
the Republic of Panama (the "Company") and Louis J. Sannino ("Executive".)

In consideration of the mutual covenants and agreements contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are
hereby expressly acknowledged, the parties hereto agree as follows:

I.    Obligations of the Company Upon Termination of Executive After Change In
      Control. Following the Effective Date of a Change In Control, in the event
      Executive's employment by the Company is terminated before the one-year
      anniversary of the Effective Date of a Change In Control either (i) by the
      Company for any reason other than Cause, or (ii) by the Executive for Good
      Reason, then subject to the provisions of paragraph (b) below, the Company
      shall:

            (a)   Pay to the Executive within thirty days after the date of
                  termination of Executive's employment (or such earlier time as
                  may be required by law) the Accrued Benefits;

            (b)   In the event that a bonus is paid after the date of
                  Executive's termination of employment under the Company's
                  Executive Incentive Compensation Plan ("EICP") for the year
                  prior to the year in which the termination takes place (the
                  "Measurement Period"), pay to the Executive in a lump sum, at
                  the same time such bonus is paid to other EICP participants, a
                  cash bonus equal to the product of the multiplier used for
                  Executive Vice Presidents and Executive's annual base salary
                  for the Measurement Period.

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            (c)   Pay to Executive in a lump sum in cash within thirty days
                  after the date of termination of Executives employment a
                  payment equal to the product of Executive's target bonus under
                  EICP for the year in which the termination takes place and a
                  fraction, the numerator of which is the number of days that
                  have elapsed in the year in which the termination takes place
                  through the date of termination of Executive's employment and
                  the denominator of which is 365.

            (d)   Pay to Executive in a lump sum in cash as soon as
                  administratively practicable after the date of termination of
                  Executive's employment 200% of the sum of (1) Executive's
                  annual base salary as in effect immediately prior to the date
                  of termination of Executive's employment, and (2) Executive's
                  target bonus under EICP for the year in which the termination
                  takes place.

            (e)   In the event that it is determined that any payment or
                  distribution of any type to or for the benefit of the
                  Executive made by the Company, by any of its affiliates, by
                  any person who acquires ownership or effective control or
                  ownership of a substantial portion of the Company's assets
                  (within the meaning of section 280G of the Internal Revenue
                  Code of 1986, as amended, and the regulations thereunder (the
                  "Code")) or by any affiliate of such person, whether paid or
                  payable or distributed or distributable pursuant to the terms
                  of this Agreement or otherwise (the "Total Payments") would be
                  subject to the excise tax imposed by Section 4999 of the Code
                  (the "Excise Tax"), then the Executive shall be entitled to
                  receive an additional payment (an "Excise Tax Restoration
                  Payment") in an amount that shall fund the payment by the
                  Executive of any Excise Tax on the Total Payments as well as
                  all income taxes imposed on the Excise Tax Restoration
                  Payment, and any Excise Tax imposed on the Excise Tax
                  Restoration Payment.

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II.   Participation In Other Company Programs.

      Nothing in this Agreement shall prevent or limit Executive's continuing or
      future participation in any plan, program, policy or practice provided by
      the Company for which Executive may qualify, nor, subject to paragraph (d)
      of Section X, shall anything herein limit or otherwise affect such rights
      as Executive may have under any contract or agreement with the Company.
      Amounts which are vested benefits or which Executive is otherwise entitled
      to receive under any plan, policy, practice or program of or any contract
      or agreement with the Company at or subsequent to the date of termination
      of Executive's employment shall be payable in accordance with such plan,
      policy, practice or program or contract or agreement except as explicitly
      modified by this Agreement. Notwithstanding the foregoing, it is expressly
      understood and acknowledged by Executive that any payment by the Company
      under Section I hereof shall be in lieu of any obligation on the part of
      the Company for payment of severance benefits under the Severance Plan for
      Employees of McDermott Incorporated and Participating Subsidiary and
      Affiliated Companies or any successor thereto or any other plan, policy or
      agreement of the Company in the event of termination of Executive's
      employment as provided in Section I hereof with the Company during the
      one-year period following the Effective Date of a Change In Control.

III.  Confidential and Proprietary Information.

      Executive acknowledges and agrees that any and all non-public information
      regarding the Company, any of its Subsidiaries and its or their customers
      (including but not limited to any and all information relating to its or
      their business practices, products, services, finances, management,
      strategy, profits and overhead) is confidential and the unauthorized
      disclosure of such confidential information will result in irreparable
      harm to the Company. Executive shall not, during his employment by the
      Company or any of its Subsidiaries and for a period of five years after
      termination of such employment (or such shorter period as may be required
      by law), disclose or permit the

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      disclosure of any such confidential information to any person other than
      an employee of the Company or its Subsidiaries or an individual engaged by
      the Company or its Subsidiaries to render professional services to the
      Company or its Subsidiaries under circumstances that require such person
      to maintain the confidentiality of such information, except as such
      disclosure may be required by law. The provisions of this Section III
      shall survive any termination of this Agreement. For purposes of this
      Section III, the term "confidential information" shall not include
      information that was or becomes generally available to the public other
      than as a result of disclosure by Executive. Executive acknowledges that
      the execution of this Agreement and the payments described in Section I
      herein constitute consideration for the limitations on activities set
      forth in this Section III, the adequacy of which is hereby expressly
      acknowledged by Executive. Executive understands and agrees that the
      Company shall suffer irreparable harm if Executive breaches Section III
      hereof, and that monetary damages shall be inadequate to address any such
      breach. Accordingly, Executive agrees that the Company shall have the
      right, to the extent permitted by applicable law, and in addition to any
      other rights or remedies it may have, to obtain from any court of
      competent jurisdiction, injunctive relief to restrain any breach or
      threatened breach hereof or otherwise to specifically enforce the
      provisions hereof.

IV.   Notices.

      All notices and other communications provided for by this Agreement shall
      be in writing and shall be deemed to have been duly given when (a)
      delivered by hand, (b) sent by facsimile or email to the facsimile number
      or email address given below, provided that a copy is also sent by a
      nationally recognized overnight delivery service, (c) the day after being
      sent by a nationally recognized overnight delivery service, or (d) three
      days after being mailed by United States Certified Mail, return receipt
      requested, postage prepaid, addressed as follows:

                                       4
<PAGE>

             If to Executive:        Louis J. Sannino
                                     714 Marywood Chase
                                     Houston, TX 77024

                      Email:         ljsannino@mcdermott.com

                      Facsimile:     281-870-5095

             If to the Company:

                      McDermott International, Inc.

                      c/o            John T. Nesser III
                                     Executive Vice President, General Counsel,
                                     and Corporate Secretary
                                     757 N. Eldridge Parkway
                                     Houston, TX 77079

                      Email:         jtnesser@mcdermott.com

                      Facsimile:     281-870-5015

      or to such other address as any party may have furnished to the other
      in writing in accordance with this Agreement.

V.    Governing Law.

      The provisions of this Agreement shall be interpreted and construed in
      accordance with, and enforcement may be made under, the law of the State
      of Texas without reference to principles of conflict of laws.

VI.   Successors and Assigns.

      (a)   This Agreement is personal to Executive and, without the prior
            written consent of the Company, shall not be assignable by Executive
            otherwise than by will or the laws of descent and distribution.

                                       5
<PAGE>

      (b)   This Agreement shall be binding upon and shall inure to the benefit
            of the Company and its successors and assigns.

      (c)   The Company will require that any successor to all or substantially
            all of its business and/or assets (whether such successor acquires
            such business and/or assets directly or indirectly, and whether by
            purchase, merger, consolidation or otherwise) expressly assume and
            agree to perform this Agreement in the same manner and to the same
            extent that the Company would be required to perform it if no such
            succession had taken place. As used in this Agreement, "Company"
            shall mean the Company as herein defined and any successor to its
            business and/or assets.

VII.  Employment by Subsidiaries.

      If Executive is not employed by McDermott International, Inc., but is only
      employed by one or more Subsidiaries of McDermott International, Inc.,
      then (a) the "Company" as defined herein shall be deemed to include such
      Subsidiary or Subsidiaries, and (b) termination of employment shall be
      determined with reference to Executive's employment by all such
      Subsidiaries. Further, the Company agrees that it will perform its
      obligations hereunder without regard to whether Executive is employed by
      the Company or by a Subsidiary or Subsidiaries of the Company.

VIII. Severability.

      If any provision or portion of this Agreement shall be determined to be
      invalid or unenforceable for any reason, the remaining provisions of this
      Agreement shall be unaffected thereby and shall remain in full force and
      effect to the fullest extent permitted by applicable law.

                                       6
<PAGE>

IX.   Entire Agreement; Amendment.

      This Agreement sets forth the entire Agreement of the parties hereto and
      supersedes all prior agreements, understandings and covenants between the
      parties with respect to the subject matter hereof. Except as provided in
      Section X, paragraphs (d) and (f) or Section XI, this Agreement may be
      amended or terminated only by mutual agreement of the parties in writing.

X.    Miscellaneous.

      (a)   The captions and headings of this Agreement are not part of the
            provisions hereof and shall have no force or effect.

      (b)   The Company shall be entitled to withhold from any amounts payable
            under this Agreement such Federal, state, local, foreign or excise
            taxes as shall be required or permitted to be withheld pursuant to
            any applicable law or regulation.

      (c)   Executive's or the Company's failure to insist upon strict
            compliance with any provision of this Agreement or the failure to
            assert any right Executive or the Company may have hereunder,
            including, without limitation, the right of Executive to terminate
            employment for Good Reason pursuant to paragraph (g) of Section XII
            of this Agreement, shall not be deemed to be a waiver of such
            provision or right or any other provision or right of this
            Agreement.

      (d)   Executive and the Company acknowledge that, except as may otherwise
            be provided under any other written agreement between Executive and
            the Company, the employment of Executive by the Company is "at will"
            and, subject to the last sentence of paragraph (f) of Section XII
            hereof, Executive's employment may be terminated by either Executive
            or the Company at any time prior to the Effective Date of a Change
            In Control, in which case this

                                       7
<PAGE>

            Agreement shall terminate as provided in Section XI below and
            Executive shall have no further rights under this Agreement.

      (e)   For purposes of this Agreement, the date of termination of
            Executive's employment shall be: (i) if Executive's employment is
            terminated by the Company for Cause, the date on which the Company
            delivers to Executive the resolution referred to in the last
            sentence of Section XII, paragraph (c), or, with respect to a
            termination under Section XII, paragraph (c)(iii), the date on which
            the Company notifies Executive of such termination, (ii) if
            Executive's employment is terminated by the Company because of
            Executive's Disability or for a reason other than Cause or
            Executive's death or Disability, the date on which the Company
            notifies Executive of such termination, (iii) if executive's
            employment is terminated by Executive for Good Reason, the date on
            which Executive notifies the Company of such termination (after
            having given the Company notice and a thirty-day cure period), or
            (iv) if Executive's employment is terminated by reason of death, the
            date of death of executive.

      (f)   The Company may terminate this Agreement at any time prior to a
            Change In Control upon giving Executive written notice of such
            termination at least thirty days prior to the date of termination if
            either of the following circumstances take place: (i) Executive's
            position with the Company is changed so that he ceases to be an
            officer of the Company, or (ii) Executive ceases to be a fulltime
            employee; provided that if a Change In Control is announced or
            occurs during such thirty-day period, the termination shall not be
            effective.

      (g)   This Agreement may be executed in two counterparts, each of which
            shall be deemed an original and together shall constitute one and
            the same agreement, with one counterpart being delivered to each
            party hereto.

      (h)   In the event the Executive's employment is terminated following the
            Effective Date of a Change In Control and before the one-year
            anniversary of the

                                       8
<PAGE>

            Effective Date of a Change In Control (i) by the Company for Cause
            or an a result of Executive's death or disability, or (ii) by
            Executive without Good Reason, Executive shall not be entitled to
            the payments described in Section 1 hereof.

XI.   Term.

      This Agreement shall terminate on the earliest to occur of (i) termination
      by the Company in accordance with Section X, paragraph (f) above, (ii) the
      date one year after the Effective Date of a Change or Control, or (iii)
      the date on which Executive's employment with the Company is terminated
      (subject to the last sentence of Section XII, paragraph (g)); provided,
      however, that if Executive's employment with the Company is terminated
      under any of the circumstances described in Section I hereof, Executive's
      rights hereunder shall continue following the termination of his/her
      employment with the Company until all benefits to which Executive is
      entitled hereunder has been paid and the Company's rights hereunder shall
      continue until all obligations owed to it hereunder have been satisfied.

XII.  Definitions.

      For purposes of this Agreement, the following terms shall have the
      meanings given them in this Section XII.

      (a)   "Accrued Benefits" shall mean:

            (i)   Any portion of Executive's Annual Base Salary earned through
                  the date of termination of Executive's employment and not yet
                  paid;

            (ii)  Reimbursement for any and all amounts advanced in connection
                  with Executive's employment for reasonable and necessary
                  expenses incurred by Executive through the date of termination
                  of Executive's

                                       9
<PAGE>

                  employment in accordance with the Company's policies and
                  procedures on reimbursement of expenses;

            (iii) Any earned vacation pay not theretofore used or paid in
                  accordance with the Company's policy for payment of earned and
                  unused vacation time; and

            (iv)  All other payments and benefits to which Executive may be
                  entitled under the terms of any applicable compensation
                  arrangement or benefit plan or program of the Company that do
                  not specify the time of distribution; provided that Accrued
                  Benefits shall not include any entitlement to severance under
                  any severance policy of the Company generally applicable to
                  the salaried employees of the Company.

      (b)   "Annual Base Salary" shall mean Executive's annual rate of pay
            excluding all other elements of compensation such as, without
            limitation, bonuses, perquisites, expatriate or hardship premiums,
            restricted stock awards, stock options and retirement and welfare
            benefits.

      (c)   "Cause" shall mean:

            (i)   the willful and continued failure of Executive to perform
                  substantially his/her duties with the Company (occasioned by
                  reason other than physical or mental illness or disability of
                  Executive) after a written demand for substantial performance
                  is delivered to Executive by the Compensation Committee of the
                  Board or the Chief Executive Officer of the Company which
                  specifically identifies the manner in which the Compensation
                  Committee of the Board or the Chief Executive Officer believes
                  that Executive has not substantially performed his/her duties,
                  after which Executive shall have thirty days to defend or
                  remedy such failure to substantially perform his/her duties:

                                       10
<PAGE>

            (ii)  the willful engaging by Executive in illegal conduct or gross
                  misconduct which is materially and demonstrably injurious to
                  the Company; or

            (iii) the conviction of Executive with no further possibility of
                  appeal or, or plea of nolo contendere by Executive to, any
                  felony.

            The cessation of employment of Executive under subparagraph (i) and
            (ii) above shall not be deemed to be for "Cause" unless and until
            there shall have been delivered a Executive a copy of a resolution
            duly adopted by the affirmative vote of not less than three-quarters
            (3/4) of the entire membership of the Compensation Committee of the
            Board at a meeting of such Committee called and held for such
            purpose (after reasonable notice is provided to Executive and
            Executive is given an opportunity, together with counsel, to be
            heard before the Compensation Committee of the Board), finding that,
            in the good faith opinion of the Compensation Committee of the
            Board, Executive is guilty of the conduct described in subparagraph
            (i) or (ii) above, and specifying the particulars thereof in detail.

      (d)   "Change In Control" shall be deemed to occur if:

            (i)   When any "person" or "group" of persons (as such terms are
                  used in Section 13 and 14 of the Securities Exchange Act of
                  1934, as amended from time to time (the "Exchange Act")),
                  other than the Company or any employee benefit plan sponsored
                  by the Company, becomes the "beneficial owner" (as such term
                  is used in Section 13 of the Exchange Act) of 25 percent or
                  more of the total number of the Company's common shares at the
                  time outstanding; or

                                       11
<PAGE>

            (ii)  of the approval by the vote of the Company's stockholders
                  holding at least 50 percent (or such greater percentage as may
                  be required by the Certificate of Incorporation or Bylaws of
                  the Company or by law) of the voting stock of the Company of
                  any merger, consolidation, sales of assets, liquidation or
                  reorganization in which the Company will not survive as a
                  publicly owned corporation or;

            (iii) when the individuals who, at the beginning of any period of
                  two years or less, constituted the Board of Directors of the
                  Company cease, for any reason, to constitute at least a
                  majority thereof, unless the election or nomination for
                  election of each new director was approved by the vote of at
                  least a majority of the directors then still in office who
                  were directors at the beginning of such period.

            A Change In Control shall not result from any transaction
            precipitated by the Company's insolvency, appointment of a
            conservator or determination by a regulatory agency that the Company
            is insolvent.

      (e)   "Disability" shall mean circumstances that qualify Executive for
            long-term disability benefits under the Company's Long-Term
            Disability Plan as in effect immediately prior to the Change In
            Control.

      (f)   "Effective Date" with respect to a Change In Control for purposes of
            this Agreement shall be the earliest to occur of (i) the date on
            which the Company receives a copy of a Schedule 13D disclosing
            beneficial ownership of shares in accordance with Section XII,
            paragraph (d)(i) above; (ii) the effective date of the consummation
            of a merger, consolidation, share exchange or similar form of
            corporate transaction or liquidation or reorganization in accordance
            with Section XII, paragraph (d)(ii); or (iii) the date of the annual
            or special meeting of shareholders at which the last director
            necessary to meet the requirements of Section XII, paragraph
            (d)(iii) is elected. Upon the occurrence of the Effective

                                       12
<PAGE>

            Date of a Change In Control, the Board of Directors or its designee
            shall, within thirty days thereof, provide written notice to
            Executive of the Effective Date of the Change In Control.
            Notwithstanding anything to the contrary in this Agreement, if a
            Change In Control occurs and if Executive's employment with the
            Company is terminated within the ninety days prior to the Effective
            Date of the Change In Control as determined in accordance with the
            first sentence of this paragraph (f), and if it is reasonably
            demonstrated by Executive that such termination of employment was at
            the request of a third party who has taken steps reasonably
            calculated to effect a Change In Control, or otherwise arose in
            connection with or in anticipation of a Change In Control, then for
            all purposes of this Agreement, the "Effective Date" of the Change
            In Control shall mean the date immediately prior to the date of such
            termination of employment.

      (g)   "Good Reason" shall mean:

            (i)   the assignment to Executive of duties that are materially
                  inconsistent with Executive's position, authority, duties or
                  responsibilities immediately prior to the Change In Control,
                  or any other action by the Company which results in a material
                  diminution in such position, authority, duties or
                  responsibilities;

            (ii)  requiring Executive, without his consent, to be based at any
                  office or location other than the office or location a which
                  Executive was employed immediately prior to the Change In
                  Control; provided, however, that any such relocation requests
                  shall not be grounds for resignation with Good Reason if such
                  relocation is within a twenty-mile radius of the location at
                  which Executive was based prior to the Effective Date of a
                  Change In Control;

                                       13
<PAGE>

            (iii) a reduction in Executive's Annual Base Salary in effect
                  immediately prior to the Change In Control or a reduction in
                  the target multiplier used to calculate the annual bonus
                  awarded to Executive below the target multiplier used to
                  calculate the bonus paid to Executive under the EICP
                  immediately prior to the Change In Control, provided, however
                  that in either case a reduction in the Annual Base Salary or
                  the target bonus multiplier shall not be considered "Good
                  Reason" with respect to any year for which such reduction is
                  part of a reduction uniformly applicable to all similarly
                  situated employees;

            (iv)  a change in Executive's eligibility to participate in
                  incentive compensation plans as in effect immediately prior to
                  the Change In Control; or

            (v)   any material breach of this Agreement by the Company,
                  excluding for this purpose an isolated, insubstantial or
                  inadvertent action not taken in bad faith and which is
                  remedied by the Company promptly after receipt of notice
                  thereof given by Executive.

            Upon the occurrence of any of the events described above, Executive
            shall give the Company written notice that such event constitutes
            Good Reason and the Company shall thereafter have thirty days in
            which to cure. If the Company has not cured in that time, the event
            shall constitute Good Reason.

      (h)   "Subsidiaries" shall mean every, limited liability company,
            partnership or other entity of which 50% or more of the total
            combined voting power of all classes of voting securities or other
            equity interests is owned, directly or indirectly, by McDermott
            International, Inc.

                                       14
<PAGE>

XIII. Arbitration

      Any controversy or claim arising out of or relating to this Agreement (or
      the breach thereof) shall be settled by final and binding arbitration in
      Houston, Texas by one arbitrator selected in accordance with the
      Commercial Arbitration Rules (the "Rules") of the American Arbitration
      Association (the "Association") then in effect. Subject to the following
      provisions, the arbitration shall be conducted in accordance with the
      Rules then in effect. Any award entered by the arbitrator shall be final
      and binding, and judgment may be entered thereon by any party hereto in
      any court of law having competent jurisdiction. This arbitration provision
      shall be specifically enforceable. The Company and the Executive shall
      each pay half of the administrative fees of the Association and the
      compensation of the arbitrator and shall each be responsible for its or
      his/her own attorney's fees and expenses relating to the conduct of the
      arbitration.

IN WITHNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first above written.

                                            McDERMOTT INTERNATIONAL, INC.

                                   By:     ___________________________________

                                   Printed Name:   Bruce W. Wilkinson

                                   Title:   Chief Executive Officer

                                   Date:    __________________________________

                                   Executive: ________________________________

                                   Date:      ________________________________

                                       15

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