Document:

<PAGE>
                                                                     EXHIBIT 4.2

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

                          FIFTH SUPPLEMENTAL INDENTURE

                                     BETWEEN

                         DIAMOND OFFSHORE DRILLING, INC.

                                       AND

                    JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

                  (FORMERLY KNOWN AS THE CHASE MANHATTAN BANK),

                                   AS TRUSTEE

                                   DATED AS OF

                                  JUNE 14, 2005

================================================================================
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<S>               <C>                                                                                          <C>
                                                         ARTICLE ONE

                                                       THE 2015 NOTES

Section 101       Designation of 2015 Notes; Establishment of Form...............................................2
Section 102       Transfer and Exchange..........................................................................3
Section 103       Amount........................................................................................10
Section 104       Regular Interest..............................................................................10
Section 105       Liquidated Damages............................................................................10
Section 106       Denominations.................................................................................10
Section 107       Place of Payment..............................................................................10
Section 108       Redemption....................................................................................11
Section 109       Stated Maturity...............................................................................11
Section 110       Discharge of Liability on 2015 Notes..........................................................11
Section 111       Other Terms of 2015 Notes.....................................................................11

                                                         ARTICLE TWO

                                                 AMENDMENTS TO THE INDENTURE

Section 201       Amendments Applicable Only to 2015 Notes......................................................11
Section 202       Definitions...................................................................................11
Section 203       Registration, Registration of Transfer and Exchange...........................................15
Section 204       Mutilated, Destroyed, Lost and Stolen Securities..............................................16
Section 205       Amendment of Article Four of the Indenture....................................................16
Section 206       Amendment to Section 501 of the Indenture.....................................................17
Section 207       Reports by Company............................................................................18
Section 208       Amendment to Section 801 of the Indenture.....................................................19
Section 209       Amendment to Article Ten of the Indenture.....................................................19

                                                         ARTICLE THREE

                                                   MISCELLANEOUS PROVISIONS

Section 301       Integral Part.................................................................................22
Section 302       General Definitions...........................................................................23
Section 303       Adoption, Ratification and Confirmation.......................................................23
Section 304       Counterparts..................................................................................23
Section 305       Governing Law.................................................................................23
Section 306       Conflict of any Provision of Indenture with Trust Indenture Act of 1939.......................23
Section 307       Effect of Headings............................................................................23
Section 308       Severability of Provisions....................................................................23
Section 309       Successors and Assigns........................................................................24
Section 310       Benefit of Fifth Supplemental Indenture.......................................................24
Section 311       Acceptance by Trustee.........................................................................24

ANNEX A
Exhibit B-1
Exhibit B-2
</TABLE>

                                      i
<PAGE>

                         DIAMOND OFFSHORE DRILLING, INC.

                          FIFTH SUPPLEMENTAL INDENTURE

         THIS FIFTH SUPPLEMENTAL INDENTURE, dated as of June 14, 2005, between
Diamond Offshore Drilling, Inc., a Delaware corporation (the "Company"), and
JPMorgan Chase Bank, National Association (formerly known as The Chase Manhattan
Bank), a banking corporation organized and existing under the laws of the State
of New York (the "Trustee").

                                   WITNESSETH

         WHEREAS, the Company has heretofore executed and delivered to the
Trustee an Indenture, dated as of February 4, 1997 (the "Indenture"), providing
for the issuance from time to time of its debentures, notes, bonds or other
evidences of indebtedness (hereinafter called "Securities") in one or more fully
registered series;

         WHEREAS, Section 901(5) of the Indenture provides that the Company and
the Trustee may from time to time enter into one or more indentures supplemental
thereto to establish the form or terms of Securities of a new series;

         WHEREAS, Sections 901(2) and 901(7) of the Indenture permit the
execution of supplemental indentures without the consent of any Holders to add
to the covenants of the Company for the benefit of, and to add any additional
Events of Default with respect to, all or any series of Securities;

         WHEREAS, Section 301 of the Indenture provides that the Company may
enter into supplemental indentures to establish the terms and provisions of a
series of Securities issued pursuant to the Indenture;

         WHEREAS, the Company desires to issue 4.875% Senior Notes due July 1,
2015 (the "2015 Notes"), a new series of Security, the issuance of which was
authorized by resolution of the Board of Directors of the Company, dated June 7,
2005;

         WHEREAS, the Company, pursuant to the foregoing authority, proposes in
and by this Fifth Supplemental Indenture to supplement and amend in certain
respects the Indenture insofar as it will apply only to the 2015 Notes (and not
to any other series); and

         WHEREAS, all things necessary have been done to make the 2015 Notes,
when executed by the Company and authenticated and delivered hereunder and duly
issued by the Company, the valid obligations of the Company, and to make this
Fifth Supplemental Indenture a valid agreement of the Company, in accordance
with their and its terms.

                                       1
<PAGE>
         NOW THEREFORE:

         In consideration of the premises provided for herein, the Company and
the Trustee mutually covenant and agree for the equal and proportionate benefit
of all Holders of the 2015 Notes as follows:

                                  ARTICLE ONE

                                 THE 2015 NOTES

Section 101  Designation of 2015 Notes; Establishment of Form.

         There shall be a series of Securities designated "4.875% Senior Notes
due July 1, 2015" of the Company, and the form thereof shall be substantially as
set forth in Annex A hereto, which is incorporated into and shall be deemed a
part of this Fifth Supplemental Indenture, with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
the Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers of the Company executing
such 2015 Notes, as evidenced by their execution of the 2015 Notes.

                  (a) Restricted Global Securities. All of the 2015 Notes are
initially being offered and sold to either (i) qualified institutional buyers as
defined in Rule 144A (collectively, "QIBs" or individually a "QIB") in reliance
on Rule 144A under the Securities Act, or (ii) outside the United States to
non-U.S. persons in reliance on Regulation S under the Securities Act, and shall
be issued initially in the form of one or more Notes in registered, global form
without interest coupons, with a restrictive legend as set forth in Annex A
hereto (collectively, the "Restricted Global Securities"). The Restricted Global
Securities shall be deposited on behalf of the purchasers of the 2015 Notes
represented thereby with the Trustee, at its Corporate Trust Office, as
Securities Custodian for the depositary, The Depository Trust Company (the
"DTC") (such depositary, or any successor thereto, being hereinafter referred to
as the "Depositary"), and registered in the name of its nominee, Cede & Co.,
and, in the case of the 2015 Notes held in accordance with Regulation S,
registered in the name of the Depositary or its nominees, in each case for
credit to an account of a direct or indirect participant in the DTC (including,
if applicable, Euroclear System or Clearstream Banking Luxembourg), duly
executed by the Company and authenticated by the Trustee as hereinafter
provided. The aggregate principal amount of a Restricted Global Security may
from time to time be increased or decreased by adjustments made on the records
of the Securities Custodian as hereinafter provided, subject in each case to
compliance with the Applicable Procedures. Prior to the expiration of the
Restricted Period, beneficial interests in the Regulation S Restricted Global
Security may only be held by non-U.S. persons, unless exchanged for interests in
the Restricted Global Securities in accordance with transfer and certification
requirements.

                  (b) Institutional Accredited Investor Securities. Except as
provided in this Section 101 or Section 102, owners of beneficial interests in
Global Securities will not be entitled to receive physical delivery of
Certificated Securities. Securities offered and sold within the United States to
institutional accredited investors as defined in Rule 501(a)(1), (2), (3) and

                                       2
<PAGE>
(7) under the Securities Act ("Institutional Accredited Investors") shall be
issued, initially in the form of Certificated Securities, duly executed by the
Company and authenticated by the Trustee as hereinafter provided.

                  (c) Global Securities in General. Each Global Security shall
represent such of the Outstanding 2015 Notes as shall be specified therein and
each shall provide that it shall represent the aggregate principal amount of
Outstanding 2015 Notes from time to time endorsed thereon and that the aggregate
principal amount of Outstanding 2015 Notes represented thereby may from time to
time be reduced or increased, as appropriate, to reflect exchanges or
redemptions of such 2015 Notes. Any endorsement of a Global Security to reflect
the amount of any increase or decrease in the principal amount of Outstanding
2015 Notes represented thereby shall be made by the Securities Custodian in
accordance with the standing instructions and procedures existing between the
Depositary and the Securities Custodian.

                  Neither any members of, or participants in, the Depositary
("Agent Members") nor any other Persons on whose behalf Agent Members may act
shall have rights under this Indenture with respect to any Global Security held
in the name of the Depositary or any nominee thereof, or under the Global
Security, and the Depositary (including, for this purpose, its nominee) may be
treated by the Company, the Trustee and any agent of the Company or the Trustee
as the absolute owner and Holder of such Global Security for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall (A) prevent the
Company, the Trustee or any agent of the Company or the Trustee from giving
effect to any written certification, proxy or other authorization furnished by
the Depositary or (B) impair, as between the Depositary, its Agent Members and
any other Person on whose behalf an Agent Member may act, the operation of
customary practices governing the exercise of the rights of a Holder of any 2015
Notes.

                  (d) Certificated Securities. Certificated Securities shall be
issued only under the limited circumstances provided in Section 101(b),
102(a)(1) and 102(b) hereof.

                  (e) Paying Agent. The Company shall maintain an office or
agency where 2015 Notes may be presented for payment ("Paying Agent"). The
Company shall enter into an appropriate agency agreement with a Paying Agent.
The agreement shall implement the provisions of this Indenture that relate to
such agent. The Company shall notify the Trustee of the name and address of any
such agent. If the Company fails to maintain a Paying Agent, the Trustee shall
act as such and shall be entitled to appropriate compensation therefor pursuant
to Section 607. The Company or any Subsidiary or an Affiliate of either of them
may act as Paying Agent. The Company initially appoints the Trustee as Paying
Agent in connection with the 2015 Notes.

Section 102  Transfer and Exchange.

                  (a) Transfer and Exchange of Global Securities.

                           (1) Except as provided in Section 102(b),
         Certificated Securities shall be issued in exchange for interests in
         the Global Securities only if (x) the Depositary notifies the Company
         that it is unwilling or unable to continue as depositary for the Global

                                       3
<PAGE>
         Securities or if it at any time ceases to be a "clearing agency"
         registered under the Exchange Act if so required by applicable law or
         regulation and a successor depositary is not appointed by the Company
         within 90 days, (y) the Company at any time and in its sole discretion
         determines not to have the 2015 Notes represented by a Global Security,
         or (z) an Event of Default has occurred and is continuing. In each
         case, the Company shall execute, and the Trustee shall, upon receipt of
         a Company Order (which the Company agrees to deliver promptly),
         authenticate and deliver Certificated Securities in an aggregate
         principal amount equal to the principal amount of such Global
         Securities in exchange therefor. Only Restricted Certificated
         Securities shall be issued in exchange for beneficial interests in
         Restricted Global Securities, and only Unrestricted Certificated
         Securities shall be issued in exchange for beneficial interests in
         Unrestricted Global Securities. Certificated Securities issued in
         exchange for beneficial interests in Global Securities shall be
         registered in such names and shall be in such authorized denominations
         as the Depositary, pursuant to instructions from its direct or indirect
         participants or otherwise, shall instruct the Trustee. The Trustee
         shall deliver or cause to be delivered such Certificated Securities to
         the persons in whose names such Securities are so registered. Such
         exchange shall be effected in accordance with the Applicable
         Procedures. Nothing herein shall require the Trustee to communicate
         directly with beneficial owners, and the Trustee shall in connection
         with any transfers hereunder be entitled to rely on instructions
         received through the registered Holder.

                           In the event that Certificated Securities are issued
         in exchange for beneficial interests in Global Securities in accordance
         with the foregoing paragraph and, thereafter, the events or conditions
         specified in this Section 102(a)(1) which required such exchange shall
         have ceased to exist, the Company shall mail notice to the Trustee and
         to the Holders stating that Holders may exchange Certificated
         Securities for interests in Global Securities by complying with the
         procedures set forth in this Indenture and briefly describing such
         procedures and the events or circumstances requiring that such notice
         be given.

                           (2) Notwithstanding any other provisions of this
         Indenture other than the provisions set forth in Section 102(a)(1)
         hereof, a Global Security may not be transferred, except as a whole by
         the Depositary to a nominee of the Depositary or by a nominee of the
         Depositary to the Depositary or another nominee of the Depositary or by
         the Depositary or any such nominee to a successor Depositary or a
         nominee of such successor Depositary. Nothing in this Section 102(a)(2)
         shall prohibit or render ineffective any transfer of a beneficial
         interest in a Global Security effected in accordance with the other
         provisions of this Section 102.

                                       4
<PAGE>

                  (b) Restrictions on Transfer of a Beneficial Interest in a
Global Security for a Certificated Security. A beneficial interest in a Global
Security may not be exchanged for a Certificated Security except upon
satisfaction of the requirements set forth below. Upon receipt by the Trustee of
a request in the form satisfactory to the Trustee from the Depositary or its
nominee on behalf of a person having a beneficial interest in a Global Security
to register the transfer of all or a portion of such beneficial interest in
accordance with Applicable Procedures for a Certificated Security, together
with:

                           (1) in the case of a request to register the transfer
                  of a beneficial interest in a Restricted Global Security, a
                  certificate (a "Transfer Certificate"), in substantially the
                  form set forth in Exhibit B-1, and a certification in
                  substantially the form set forth in Exhibit B-2, that such
                  beneficial interest in the Restricted Global Security is being
                  transferred to an Institutional Accredited Investor;

                           (2) written instructions to the Trustee to make, or
                  direct the Security Registrar to make, an adjustment on its
                  books and records with respect to such Global Security to
                  reflect a decrease in the aggregate principal amount of the
                  2015 Notes represented by the Global Security, such
                  instructions to contain information regarding the Depositary
                  account to be credited with such decrease; and

                           (3) if the Company or the Trustee so requests, a
                  customary opinion of counsel, certificates and other
                  information reasonably acceptable to them as to the compliance
                  with the restrictions set forth in the legend described in
                  Section 102(f)(1),

         then the Trustee shall cause, or direct the Security Registrar to
         cause, in accordance with the standing instructions and procedures
         existing between the Depositary and the Security Registrar, the
         aggregate principal amount of 2015 Notes represented by the Global
         Security to be decreased by the aggregate principal amount of the
         Certificated Security to be issued, shall authenticate and deliver such
         Certificated Security and shall debit or cause to be debited to the
         account of the Person specified in such instructions a beneficial
         interest in the Global Security equal to the principal amount of the
         Certificated Security so issued.

                  (c) Transfer and Exchange of Certificated Securities. When
Certificated Securities are presented by a Holder to a Security Registrar with a
request:

                           (1) to register the transfer of the Certificated
         Securities to a person who will take delivery thereof in the form of
         Certificated Securities only; or

                           (2) to exchange such Certificated Securities for an
         equal principal amount of Certificated Securities of other authorized
         denominations,

                                       5
<PAGE>

such Security Registrar shall register the transfer or make the exchange as
requested; provided, however, that the Certificated Securities presented or
surrendered for register of transfer or exchange:

                           (1) shall be duly endorsed or accompanied by a
         written instrument of transfer in accordance with the fifth paragraph
         of Section 305 of the Indenture; and

                           (2) in the case of a Restricted Certificated
         Security, such request shall be accompanied by the following additional
         information and documents, as applicable:

                                    (A) if such Restricted Certificated Security
                  is being delivered to the Security Registrar by a Holder for
                  registration in the name of such Holder, without transfer, or
                  such Restricted Certificated Security is being transferred to
                  the Company or a Subsidiary of the Company, a certification to
                  that effect from such Holder (in substantially the form set
                  forth in the Transfer Certificate);

                                    (B) if such Restricted Certificated Security
                  is being transferred to a person the Holder reasonably
                  believes is a QIB in accordance with Rule 144A or pursuant to
                  an effective registration statement under the Securities Act,
                  a certification to that effect from such Holder (in
                  substantially the form set forth in the Transfer Certificate);

                                    (C) if such Restricted Certificated Security
                  is being transferred to an Institutional Accredited Investor,
                  a certification to that effect from such Holder (in
                  substantially the form set forth in the Transfer Certificate),
                  a certification from the Institutional Accredited Investor to
                  whom such Restricted Certificated Security is being
                  transferred in substantially the form set forth in Exhibit
                  B-2, and, if the Company or such Security Registrar so
                  requests, a customary opinion of counsel, certificates and
                  other information reasonably acceptable to them as to the
                  compliance with the restrictions set forth in the legend
                  described in Section 102(f)(1); or

                                    (D) if such Restricted Certificated Security
                  is being transferred (i) pursuant to an exemption from the
                  registration requirements of the Securities Act in accordance
                  with Rule 144 or (ii) pursuant to an exemption from the
                  registration requirements of the Securities Act (other than
                  pursuant to Rule 144A or Rule 144) and as a result of which,
                  in the case of a Security transferred pursuant to this clause
                  (ii), such Security shall cease to be a "restricted security"
                  within the meaning of Rule 144, a certification to that effect
                  from the Holder (in substantially the form set forth in the
                  Transfer Certificate) and, if the Company or such Security
                  Registrar so requests, a customary opinion of counsel,
                  certificates and other information reasonably acceptable to
                  the Company and such Security Registrar to the effect that
                  such transfer is in compliance with the Securities Act.

                  (d) Transfer of a Beneficial Interest in a Restricted Global
Security for a Beneficial Interest in an Unrestricted Global Security. Any
person having a beneficial interest in

                                       6
<PAGE>

a Restricted Global Security may upon request, subject to the Applicable
Procedures, transfer such beneficial interest to a person who is required or
permitted to take delivery thereof in the form of an Unrestricted Global
Security. Upon receipt by the Trustee of written instructions or such other form
of instructions as is customary for the Depositary, from the Depositary or its
nominee on behalf of any person having a beneficial interest in a Restricted
Global Security and the following additional information and documents in such
form as is customary for the Depositary from the Depositary or its nominee on
behalf of the person having such beneficial interest in the Restricted Global
Security (all of which may be submitted by facsimile or electronically):

                           (1) if such beneficial interest is being transferred
         pursuant to an effective registration statement under the Securities
         Act, a certification to that effect from the transferor (in
         substantially the form set forth in the Transfer Certificate); or

                           (2) if such beneficial interest is being transferred
         (i) pursuant to an exemption from the registration requirements of the
         Securities Act in accordance with Rule 144 or (ii) pursuant to an
         exemption from the registration requirements of the Securities Act
         (other than pursuant to Rule 144A or Rule 144) and as a result of
         which, in the case of a Security transferred pursuant to this clause
         (ii), such Security shall cease to be a "restricted security" within
         the meaning of Rule 144, a certification to that effect from the
         transferor (in substantially the form set forth in the Transfer
         Certificate) and, if the Company or the Trustee so requests, a
         customary opinion of counsel, certificates and other information
         reasonably acceptable to the Company and the Trustee to the effect that
         such transfer is in compliance with the Securities Act,

the Trustee, as a Security Registrar and Securities Custodian, shall reduce or
cause to be reduced the aggregate principal amount of the Restricted Global
Security by the appropriate principal amount and shall increase or cause to be
increased the aggregate principal amount of the Unrestricted Global Security by
a like principal amount. Such transfer shall otherwise be effected in accordance
with the Applicable Procedures. If no Unrestricted Global Security is then
outstanding, the Company shall execute and the Trustee shall, upon receipt of a
Company Order (which the Company agrees to deliver promptly), authenticate and
deliver an Unrestricted Global Security.

                  (e) Transfers of Certificated Securities for Beneficial
Interest in Global Securities. If Certificated Securities are presented by a
Holder to a Security Registrar with a request:

                           (1) to register the transfer of such Certificated
         Securities to a person who will take delivery thereof in the form of a
         beneficial interest in a Global Security, which request shall specify
         whether such Global Security will be a Restricted Global Security or an
         Unrestricted Global Security; or

                           (2) to exchange such Certificated Securities for an
         equal principal amount of beneficial interests in a Global Security,
         which beneficial interests will be owned by

                                       7
<PAGE>
         the Holder transferring such Certificated Securities (provided that in
         the case of such an exchange, Restricted Certificated Securities may be
         exchanged only for Restricted Global Securities and Unrestricted
         Certificated Securities may be exchanged only for Unrestricted Global
         Securities),

the Security Registrar shall register the transfer or make the exchange as
requested by canceling such Certificated Security and causing, or directing the
Securities Custodian to cause, the aggregate principal amount of the applicable
Global Security to be increased accordingly and, if no such Global Security is
then outstanding, the Company shall issue and the Trustee shall authenticate and
deliver a new Global Security; provided, however, that the Certificated
Securities presented or surrendered for registration of transfer or exchange:

                           (3) shall be duly endorsed or accompanied by a
         written instrument of transfer in accordance with the fifth paragraph
         of Section 305 of the Indenture;

                           (4) in the case of a Restricted Certificated Security
         to be transferred for a beneficial interest in an Unrestricted Global
         Security, such request shall be accompanied by the following additional
         information and documents, as applicable:

                                    (A) if such Restricted Certificated Security
                  is being transferred pursuant to an effective registration
                  statement under the Securities Act, a certification to that
                  effect from such Holder (in substantially the form set forth
                  in the Transfer Certificate); or

                                    (B) if such Restricted Certificated Security
                  is being transferred pursuant to (i) an exemption from the
                  registration requirements of the Securities Act in accordance
                  with Rule 144 or (ii) pursuant to an exemption from the
                  registration requirements of the Securities Act (other than
                  pursuant to Rule 144A or Rule 144) and as a result of which,
                  in the case of a Security transferred pursuant to this clause
                  (ii), such Security shall cease to be a "restricted security"
                  within the meaning of Rule 144, a certification to that effect
                  from such Holder (in substantially the form set forth in the
                  Transfer Certificate), and, if the Company or the Security
                  Registrar so requests, a customary opinion of counsel,
                  certificates and other information reasonably acceptable to
                  the Company and the Trustee to the effect that such transfer
                  is in compliance with the Securities Act;

                           (5) in the case of a Restricted Certificated Security
         to be transferred or exchanged for a beneficial interest in a
         Restricted Global Security, such request shall be accompanied by a
         certification from such Holder (in substantially the form set forth in
         the Transfer Certificate) to the effect that such Restricted
         Certificated Security is being transferred to a person the Holder
         reasonably believes is a QIB (which, in the case of an exchange, shall
         be such Holder) in accordance with Rule 144A; and

                           (6) in the case of an Unrestricted Certificated
         Security to be transferred or exchanged for a beneficial interest in an
         Unrestricted Global Security, such request need not be accompanied by
         any additional information or documents.

                                       8
<PAGE>

                  (f) Legends.

                           (1) Except as permitted by the following paragraphs
         (2) and (3), each Global Security and Certificated Security (and all
         Securities issued in exchange therefor or upon registration of transfer
         or replacement thereof) shall bear a legend in substantially the form
         called for by footnote 2 to Annex A hereto (each a "Transfer Restricted
         Security" for so long as such Security is required by this Indenture to
         bear such legend). Each Transfer Restricted Security shall have
         attached thereto a Transfer Certificate in substantially the form set
         forth in Exhibit B-1 hereto.

                           (2) Upon any sale or transfer of a Transfer
         Restricted Security (x) pursuant to Rule 144, (y) pursuant to an
         effective registration statement under the Securities Act or (z)
         pursuant to any other available exemption (other than Rule 144A) from
         the registration requirements of the Securities Act and as a result of
         which, in the case of a Security transferred pursuant to this clause
         (z), such Security shall cease to be a "restricted security" within the
         meaning of Rule 144:

                                    (A) in the case of any Restricted
                  Certificated Security, any Security Registrar shall permit the
                  Holder thereof to exchange such Restricted Certificated
                  Security for an Unrestricted Certificated Security, or (under
                  the circumstances described in Section 102(e) hereof) to
                  transfer such Restricted Certificated Security to a transferee
                  who shall take such Security in the form of a beneficial
                  interest in an Unrestricted Global Security, and in each case
                  shall rescind any restriction on the transfer of such
                  Security; provided, however, that the Holder of such
                  Restricted Certificated Security shall, in connection with
                  such exchange or transfer, comply with the other applicable
                  provisions of this Section 102; and

                                    (B) in the case of any beneficial interest
                  in a Restricted Global Security, the Trustee shall permit the
                  beneficial owner thereof to transfer such beneficial interest
                  to a transferee who shall take such interest in the form of a
                  beneficial interest in an Unrestricted Global Security and
                  shall rescind any restriction on transfer of such beneficial
                  interest; provided, however, that such Unrestricted Global
                  Security shall continue to be subject to the provisions of
                  Section 102(a)(2) hereof, and provided further, however, that
                  the owner of such beneficial interest shall, in connection
                  with such transfer, comply with the other applicable
                  provisions of this Section 102.

                           (3) Upon the exchange, registration of transfer or
         replacement of Securities not bearing the legend described in paragraph
         (1) above, the Company shall execute, the Trustee shall authenticate
         and deliver Securities that do not bear such legend and which do not
         have a Transfer Certificate attached thereto.

                  (g) Transfers to the Company. Nothing in this Indenture or in
the Securities shall prohibit the sale or other transfer of any Securities
(including beneficial interests in Global

                                       9
<PAGE>
Securities) to the Company or any of its Subsidiaries, which Securities shall
thereupon be canceled in accordance Section 309 of the Indenture.

Section 103   Amount.

         The Trustee shall authenticate and deliver 2015 Notes for original
issue in an aggregate principal amount of up to $250,000,000 upon a Company
Order for the authentication and delivery of 2015 Notes, without any further
action by the Company. The aggregate principal amount of 2015 Notes that may be
authenticated and delivered under the Indenture may not exceed the amount set
forth in the foregoing sentence, except for 2015 Notes authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of,
other 2015 Notes pursuant to Section 102 of this Fifth Supplemental Indenture or
Section 204, 304, 305, 306, 906 or 1107 of the Indenture.

Section 104  Regular Interest.

         The principal of the 2015 Notes shall bear interest at the rate of
4.875% per annum from June 14, 2005 or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, payable semiannually
in arrears on January 1 and July 1 of each year, commencing January 1, 2006, to
the Persons in whose names the 2015 Notes are registered at the close of
business on the December 15 or June 15 (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date. Interest on the 2015
Notes will be computed on the basis of a 360-day year comprised of twelve 30-day
months.

Section 105  Liquidated Damages.

         Liquidated Damages with respect to the 2015 Notes shall be payable in
accordance with the provisions and in the amounts set forth in the Registration
Rights Agreement.

Section 106  Denominations.

         The 2015 Notes shall be in fully registered form without coupons in
denominations of $1,000 of principal amount or any integral multiple thereof.

Section 107  Place of Payment.

         The Place of Payment for the 2015 Notes and the place or places where
the 2015 Notes may be surrendered for registration of transfer, exchange or
redemption and where notices may be given to the Company in respect of the 2015
Notes is at the office of the Trustee in New York, New York and at the agency of
the Trustee maintained for that purpose at the office of the Trustee; provided,
however, that payment of interest may be made at the option of the Company by
check mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register (as defined in the Indenture).

                                       10
<PAGE>
Section 108  Redemption.

                  (a) There shall be no sinking fund for the retirement of the
2015 Notes.

                  (b) The Company, at its option, may redeem the 2015 Notes in
accordance with the provisions and at the Redemption Price set forth under the
captions "Optional Redemption" and "Notice of Redemption" in the 2015 Notes and
in accordance with the provisions of the Indenture, including, without
limitation, Article Eleven.

Section 109   Stated Maturity.

         The date on which the principal of the 2015 Notes is due and payable,
unless accelerated, redeemed or required to be repurchased pursuant to the
Indenture, shall be July 1, 2015.

Section 110  Discharge of Liability on 2015 Notes.

         The 2015 Notes may be discharged by the Company in accordance with the
provisions of Article Four of the Indenture, as amended by Section 205 hereof.

Section 111  Other Terms of 2015 Notes.

         Without limiting the foregoing provisions of this Article One, the
terms of the 2015 Notes shall be as set forth in the form of the 2015 Notes set
forth in Annex A hereto and as provided in the Indenture.

                                  ARTICLE TWO

                           AMENDMENTS TO THE INDENTURE

Section 201  Amendments Applicable Only to 2015 Notes.

         The amendments contained herein shall apply to the 2015 Notes only and
not to any other series of Security issued under the Indenture and any covenants
provided herein are expressly being included solely for the benefit of the 2015
Notes and not for the benefit of any other series of Security issued under the
Indenture. These amendments shall be effective for so long as there remain any
2015 Notes Outstanding.

Section 202  Definitions.

         Section 101 of the Indenture is hereby amended, subject to Section 201
hereof and with respect to the 2015 Notes only, by inserting or restating, as
the case may be, in their appropriate alphabetical position, the following
definitions:

         "Agent Members" has the meaning specified in Section 101.

         "Applicable Procedures" means, with respect to any transfer or exchange
of beneficial ownership interests in a Global Security, the rules and procedures
that are applicable to such

                                       11
<PAGE>
transfer or exchange of the Depositary and its direct or indirect participants,
including, if applicable, those of Euroclear Bank S.A./N.V. (as operator of the
Euroclear system) and Clearstream Banking Luxembourg, which may change from time
to time.

         "Capital Stock" or "capital stock" of any Person means any and all
shares, interests, partnership interests, participations, rights or other
equivalents (however designated) of equity interests (however designated) issued
by that Person.

         "Certificated Security" means a Security that is in substantially the
form attached hereto as Annex A and that does not include the information or the
schedule called for by footnotes 1, 3 and 4 thereof.

         "Comparable Treasury Issue" means the U.S. Treasury security selected
by the Quotation Agent as having a maturity comparable to the Remaining Life
that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities
of comparable maturity with the Remaining Life as of the applicable redemption
date.

         "Comparable Treasury Price" means, with respect to any redemption date,
the average of two Reference Treasury Dealer Quotations for such redemption
date.

         "Consolidated Net Tangible Assets" means the total amount of assets
(less applicable reserves and other properly deductible items) after deducting
(1) all current liabilities (excluding the amount of those which are by their
terms extendable or renewable at the option of the obligor to a date more than
12 months after the date as of which the amount is being determined) and (2) all
goodwill, tradenames, trademarks, patents, unamortized debt discount and expense
and other like intangible assets, all as set forth on the most recent balance
sheet of the Company and its consolidated subsidiaries and determined in
accordance with generally accepted accounting principles.

         "Consolidated Net Worth" means, at any time, the Net Worth of the
Company and its Subsidiaries on a consolidated basis determined in accordance
with GAAP.

          "Corporate Trust Office" means the principal office of the Trustee in
New York, New York, at which at any particular time its corporate trust business
shall be principally administered, which office at the date hereof is located at
Worldwide Securities Services, 4 New York Plaza, New York, New York 10004,
except that with respect to the presentation of Securities for payment or for
registration of transfer and exchange, such term shall mean the office or the
agency of the Trustee in said city at which at any particular time its corporate
agency business shall be conducted, which office at the date hereof is located
at 4 New York Plaza, Ground Level, GIS Unit Trust Window, New York, New York
10004.

         "Depositary" has the meaning specified in Section 101(a).

         "DTC" has the meaning specified in Section 101(a).

                                       12
<PAGE>
         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
or any successor statute.

         "Funded Debt" means indebtedness of the Company or a Subsidiary owning
Restricted Property maturing by its terms more than one year after its creation
and indebtedness classified as long-term debt under generally accepted
accounting principles, and in each case ranking at least pari passu with the
Securities.

         "GAAP" means generally accepted accounting principles as in effect on
the date of determination in the United States.

         "Global Security" means a permanent Global Security that is in
substantially the form attached hereto as Annex A and that includes the
information and schedule called for by footnotes 1, 3 and 4 thereof and which is
deposited with the Depositary or the Securities Custodian and registered in the
name of the Depositary or its nominee.

         "Indenture" has the meaning specified in the recitals.

         "Institutional Accredited Investors" has the meaning specified in
Section 101(b).

         "Issue Date" of any 2015 Notes means the date on which the 2015 Notes
were originally issued or deemed issued as set forth on the face of the 2015
Notes.

         "Lien" means any mortgage, pledge, lien, encumbrance, charge or
security interest.

         "Liquidated Damages" shall have the meaning set forth in the
Registration Rights Agreement.

         "Net Worth" means, at any time with respect to the Company or a
Subsidiary thereof, the net worth of the Company or such Subsidiary, as the case
may be, determined in accordance with GAAP.

         "QIB" has the meaning specified in Section 101(a).

         "Quotation Agent" means the Reference Treasury Dealer appointed by the
Company.

         "Reference Treasury Dealer" means Goldman, Sachs & Co. and its
successors; provided, however, that if the foregoing ceases to be a primary U.S.
Government securities dealer in New York, New York, the Company shall substitute
therefor another primary U.S. Government securities dealer.

         "Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York,
New York time, on the third Business Day preceding such redemption date.

                                       13
<PAGE>
         "Registration Rights Agreement" means the Exchange and Registration
Rights Agreement, dated as of June 14, 2005, between the Company and Goldman,
Sachs & Co.

         "Regulation S" means Regulation S under the Securities Act or any
successor to such Rule.

         "Restricted Certificated Security" means a Certificated Security which
is a Transfer Restricted Security.

         "Restricted Global Security" means a Global Security that is a Transfer
Restricted Security.

         "Restricted Period" means the period through and including the 40th day
following the later of the commencement of the offering and the Issue Date of
the 2015 Notes.

         "Restricted Property" means (1) any drilling rig or drillship which is
leased by the Company or any Subsidiary as a lessee, or greater than a 50%
interest in which is owned by the Company or any Subsidiary, and which is used
for drilling offshore oil and gas wells, which, in the opinion of the Board of
Directors, is of material importance to the business of the Company and its
Subsidiaries taken as a whole, but no such drilling rig or drillship, or portion
thereof, shall be deemed of material importance if its net book value is less
than 2% of Consolidated Net Tangible Assets, or (2) any shares of capital stock
or indebtedness of any Subsidiary owning any such drilling rig or drillship.

         "Rule 144" means Rule 144 under the Securities Act or any successor to
such Rule.

         "Rule 144A" means Rule 144A under the Securities Act or any successor
to such Rule.

         "Sale and Leaseback Transaction" means any arrangement with any Person
pursuant to which the Company or any Subsidiary leases any Restricted Property
that has been or is to be sold or transferred by the Company or the Subsidiary
to such Person, other than (1) leases for a term, including renewals at the
option of the lessee, of not more than five years, (2) leases between the
Company and a Subsidiary or between Subsidiaries, (3) leases of a Restricted
Property executed by the time of, or within 12 months after the latest of, the
acquisition, the completion of construction or improvement, or the commencement
of commercial operation of the Restricted Property, and (4) arrangements
pursuant to any provision of law with an effect similar to the former Section
168(f)(8) of the Internal Revenue Code of 1954.

         "Securities" means any securities authenticated and delivered under the
Indenture, as the same may be amended or supplemented, including 2015 Notes.

         "Securities Act" means the Securities Act of 1933, as amended, or any
successor statute.

         "Securities Custodian" means the Trustee, as custodian with respect to
the Securities in global form, or any successor thereto.

                                       14
<PAGE>
         "Significant Subsidiary" means any Subsidiary, the Net Worth of which
represents more than 10% of the Consolidated Net Worth of the Company and its
Subsidiaries.

         "Transfer Certificate" has the meaning specified in Section 102(b)(1).

         "Transfer Restricted Securities" has the meaning specified in Section
102(f)(1).

         "Treasury Rate" means, with respect to any redemption date, the annual
rate equal to the semiannual yield to maturity of the Comparable Treasury Issue,
calculated on the third Business Day preceding such redemption date using a
price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for such redemption
date. The Company may at any time, and from time to time, purchase the 2015
Notes at any price or prices in the open market or otherwise.

         "2015 Notes" has the meaning specified in the recitals.

         "Unrestricted Certificated Security" means a Certificated Security
which is not a Transfer Restricted Security.

         "Unrestricted Global Security" means a Global Security which is not a
Transfer Restricted Security.

         "Value" means, with respect to a Sale and Leaseback Transaction, an
amount equal to the present value of the lease payments with respect to the term
of the lease remaining on the date as of which the amount is being determined,
without regard to any renewal or extension options contained in the lease
(including the effective interest rate on any original issue discount
Securities), which are outstanding on the effective date of such Sale and
Leaseback Transaction and which have the benefit of Section 1010.

Section 203  Registration, Registration of Transfer and Exchange.

         The Indenture is hereby amended, subject to Section 201 hereof and with
respect to the 2015 Notes only, by replacing the seventh paragraph of Section
305 with the following paragraph:

                  The Company shall not be required (i) to issue, register the
         transfer of or exchange the Securities of any series during a period
         beginning at the opening of business 15 days before the day of the
         mailing of a notice of redemption of Securities of that series selected
         for redemption and ending at the close of business on the day of such
         mailing or (ii) to register the transfer of or exchange any 2015 Notes
         so selected for redemption in whole or in part, except the unredeemed
         portion of any 2015 Notes being redeemed in part.

                                       15
<PAGE>
Section 204  Mutilated, Destroyed, Lost and Stolen Securities.

         The Indenture is hereby amended, subject to Section 201 hereof and with
respect to the 2015 Notes only, by replacing the second paragraph of Section 306
with the following paragraph:

                  In case any such mutilated, destroyed, lost or stolen Security
         has or is about to become due and payable, or is about to be redeemed
         by the Company pursuant to Article Eleven, the Company in its
         discretion may, instead of issuing a new Security, pay such Security.

Section 205  Amendment of Article Four of the Indenture.

         Article Four of the Indenture is hereby amended, subject to Section 201
hereof and with respect to the 2015 Notes only, by deleting Sections 401, 402
and 403 and replacing those sections with the following:

         Section 401  Discharge of Liability on Securities.

                  When (i) the Company delivers to the Trustee or any Paying
         Agent all Outstanding 2015 Notes (other than 2015 Notes replaced
         pursuant to Section 306) for cancellation or (ii) all Outstanding 2015
         Notes have become due and payable and the Company deposits with the
         Trustee or any Paying Agent cash sufficient to pay all amounts due and
         owing on all Outstanding 2015 Notes (other than 2015 Notes replaced
         pursuant to Section 306), and if the Company pays all other sums
         payable hereunder by the Company, then this Indenture shall, subject to
         Section 607, cease to be of further effect, except for the
         indemnification of the Trustee, which shall survive. The Trustee shall
         join in the execution of a document prepared by the Company
         acknowledging satisfaction and discharge of this Indenture on demand of
         the Company accompanied by an Officers' Certificate and Opinion of
         Counsel and at the cost and expense of the Company.

         Section 402  Repayment to the Company.

                  The Trustee and the Paying Agent shall return to the Company
         upon written request any money or securities held by them for the
         payment of any amount with respect to the 2015 Notes that remains
         unclaimed for two years, subject to applicable unclaimed property law.
         After return to the Company, Holders entitled to the money or
         securities must look to the Company for payment as general creditors
         unless an applicable abandoned property law designates another person
         and the Trustee and the Paying Agent shall have no further liability to
         the Holders of 2015 Notes with respect to such money or securities for
         that period commencing after the return thereof.

                                       16
<PAGE>
Section 206  Amendment to Section 501 of the Indenture.

         Section 501 of the Indenture is hereby amended, subject to Section 201
hereof and with respect to the 2015 Notes only, by deleting subsections (1),
(2), (3), (4), (5) and (6) thereof, and inserting the following as new
subsections (1), (2), (3), (4), (5) and (6) thereof:

                           (1) default in the payment of any interest upon any
         2015 Notes when it becomes due and payable or in the payment of any
         Liquidated Damages pursuant to the Registration Rights Agreement, and
         continuance of such default for a period of 30 days; or

                           (2) default in the payment of the principal amount at
         its Maturity on the 2015 Notes or the Redemption Price by the Company;
         or

                           (3) a default under any bonds, debentures, notes or
         other evidences of indebtedness for money borrowed by the Company or a
         Subsidiary or under any mortgages, indentures or instruments under
         which there may be issued or by which there may be secured or evidenced
         any indebtedness for money borrowed by the Company or a Subsidiary,
         whether such indebtedness now exists or shall hereafter be created,
         which indebtedness, individually or in the aggregate, is in excess of
         $25.0 million principal amount (excluding any such indebtedness of any
         Subsidiary other than a Significant Subsidiary, all the indebtedness of
         which Subsidiary is nonrecourse to the Company or any other
         Subsidiary), which default shall constitute a failure to pay any
         portion of the principal of such indebtedness when due and payable
         after the expiration of any applicable grace or cure period with
         respect thereto or shall have resulted in such indebtedness becoming or
         being declared due and payable prior to the date on which it would
         otherwise have become due and payable, without such indebtedness having
         been discharged, or such acceleration having been rescinded or
         annulled, within a period of 10 days after there shall have been given,
         by registered or certified mail, to the Company by the Trustee or to
         the Company and the Trustee by the Holders of at least 25% in principal
         amount of the Outstanding 2015 Notes a written notice specifying such
         default and requiring the Company to cause such indebtedness to be
         discharged or cause such acceleration to be rescinded or annulled and
         stating that such notice is a "Notice of Default" hereunder; or

                           (4) default by the Company in the performance, or
         breach, of any covenant or warranty of the Company in this Indenture
         (other than a covenant or warranty a default in whose performance or
         whose breach is elsewhere in this Section 501 specifically dealt with),
         and continuance of such default or breach for a period of 60 days after
         there has been given, by registered or certified mail, to the Company
         by the Trustee or to the Company and the Trustee by the Holders of at
         least 25% in principal amount of the Outstanding 2015 Notes a written
         notice specifying such default or breach and requiring it to be
         remedied and stating that such notice is a "Notice of Default"
         hereunder; or

                           (5) the entry by a court having jurisdiction in the
         premises of (A) a decree or order for relief in respect of the Company
         or a Significant Subsidiary in an involuntary

                                       17
<PAGE>
         case or proceeding under any applicable Federal or State bankruptcy,
         insolvency, reorganization or other similar law or (B) a decree or
         order adjudging the Company or a Significant Subsidiary a bankrupt or
         insolvent, or approving as properly filed a petition seeking
         reorganization, arrangement, adjustment or composition of or in respect
         of the Company or a Significant Subsidiary under any applicable Federal
         or State law, or appointing a custodian, receiver, liquidator,
         assignee, trustee, sequestrator or other similar official of the
         Company or a Significant Subsidiary or of any substantial part of their
         respective properties, or ordering the winding up or liquidation of the
         affairs of the Company or a Significant Subsidiary, and the continuance
         of any such decree or order for relief or any such other decree or
         order unstayed and in effect for a period of 60 consecutive days; or

                           (6) the commencement by the Company or a Significant
         Subsidiary of a voluntary case or proceeding under any applicable
         Federal or State bankruptcy, insolvency, reorganization or other
         similar law or of any other case or proceeding to be adjudicated a
         bankrupt or insolvent, or the consent by either the Company or a
         Significant Subsidiary to the entry of a decree or order for relief in
         respect of the Company or a Significant Subsidiary in an involuntary
         case or proceeding under any applicable Federal or State bankruptcy,
         insolvency, reorganization or other similar law or to the commencement
         of any bankruptcy or insolvency case or proceeding against either the
         Company or a Significant Subsidiary, or the filing by either the
         Company or a Significant Subsidiary of a petition or answer or consent
         seeking reorganization or relief under any applicable Federal or State
         law, or the consent by either the Company or a Significant Subsidiary
         to the filing of such petition or to the appointment of or taking
         possession by a custodian, receiver, liquidator, assignee, trustee,
         sequestrator or other similar official of the Company or a Significant
         Subsidiary or of any substantial part of their respective properties,
         or the making by either the Company or a Significant Subsidiary of an
         assignment for the benefit of creditors, or the admission by either the
         Company or a Significant Subsidiary in writing of an inability to pay
         the debts of either the Company or a Significant Subsidiary generally
         as they become due, or the taking of corporate action by the Company or
         a Significant Subsidiary in furtherance of any such action.

Section 207  Reports by Company.

         Section 704 of the Indenture is hereby amended, subject to Section 201
hereof and with respect to the 2015 Notes only, by adding the following
paragraph thereto:

                  (4) If at any time while any of the Securities are "restricted
         securities" within the meaning of Rule 144, the Company is no longer
         subject to the reporting requirements of Section 13 or 15(d) of the
         Exchange Act, the Company will prepare and will furnish to any Holder,
         any beneficial owner of Securities and any prospective purchaser of
         Securities designated by a Holder or a beneficial owner of Securities,
         promptly upon request, the information required pursuant to

                                       18
<PAGE>
         Rule 144A(d)(4) (or any successor thereto) under the Securities Act in
         connection with the offer, sale or transfer of Securities.

Section 208  Amendment to Section 801 of the Indenture.

         Section 801 of the Indenture is hereby amended, subject to Section 201
hereof and with respect to the 2015 Notes only, by deleting subsection (1)
thereof, and inserting the following as new subsection (1) thereof:

                           (1) the Person formed by such consolidation or into
         which the Company is merged or the Person which acquires by conveyance
         or transfer the properties and assets of the Company substantially as
         an entirety shall expressly assume, by an indenture supplemental
         hereto, executed and delivered to the Trustee, in form satisfactory to
         the Trustee, the due and punctual payment of the principal of (and
         premium, if any) and interest on all the Securities (including
         Liquidated Damages, if any) on all the Securities and the performance
         of every covenant of this Indenture on the part of the Company to be
         performed or observed;

Section 209  Amendment to Article Ten of the Indenture.

         Article Ten of the Indenture is hereby amended, subject to Section 201
hereof and with respect to the 2015 Notes only, by adding the following sections
thereto:

         SECTION 1006  Maintenance of Properties.

                  The Company will cause all properties used or useful in the
         conduct of its business or the business of any Subsidiary to be
         maintained and kept in good condition, repair and working order, normal
         wear and tear excepted, and supplied with all necessary equipment and
         will cause to be made all necessary repairs, renewals, replacements,
         betterments and improvements thereof, all as in the judgment of the
         Company may be necessary so that the business carried on in connection
         therewith may be properly and advantageously conducted at all times;
         provided, however, that nothing in this Section 1006 shall prevent the
         Company from discontinuing the operation or maintenance of any of such
         properties, or disposing of any of them, if such discontinuance or
         disposition is, in the judgment of the Company, desirable in the
         conduct of its business or the business of any Subsidiary.

         SECTION 1007  Payment of Taxes and Other Claims.

                  The Company will pay or discharge or cause to be paid or
         discharged, before the same shall become delinquent, (1) all taxes,
         assessments and governmental charges levied or imposed upon the Company
         or any Subsidiary or upon the income, profits or property of the
         Company or any Subsidiary, and (2) all lawful claims for labor,
         materials and supplies which, if unpaid, might by law become a material
         Lien upon the property of the Company or any Subsidiary;

                                       19
<PAGE>
         provided, however, that the Company shall not be required to pay or
         discharge or cause to be paid or discharged any such tax, assessment,
         charge or claim whose amount, applicability or validity is being
         contested in good faith by appropriate proceedings.

         SECTION 1008  Waiver of Certain Covenants.

                  The Company may omit in any particular instance to comply with
         any covenant or condition set forth in Sections 1005 to 1010,
         inclusive, if before the time for such compliance the Holders of at
         least a majority in principal amount of the Outstanding 2015 Notes
         shall, by Act of such Holders, either waive such compliance in such
         instance or generally waive compliance with such covenant or condition,
         but no such waiver shall extend to or affect such covenant or condition
         except to the extent so expressly waived, and, until such waiver shall
         become effective, the obligations of the Company and the duties of the
         Trustee in respect of any such covenant or condition shall remain in
         full force and effect.

         SECTION 1009  Limitation on Liens.

                  The Company shall not create, assume or suffer to exist any
         Lien on any Restricted Property to secure any debt of the Company, any
         Subsidiary or any other Person, or permit any Subsidiary so to do,
         without making effective provision whereby the 2015 Notes then
         outstanding and having the benefit of this Section shall be secured by
         a Lien equally and ratably with such debt for so long as such debt
         shall be so secured, except that the foregoing shall not prevent the
         Company or any Subsidiary from creating, assuming or suffering to exist
         Liens of the following character:

                           (1) any Lien existing on the Issue Date of the 2015
         Notes;

                           (2) any Lien existing on Restricted Property owned or
         leased by a corporation at the time it becomes a Subsidiary;

                           (3) any Lien existing on Restricted Property at the
         time of the acquisition thereof by the Company or a Subsidiary;

                           (4) any Lien to secure any debt incurred prior to, at
         the time of, or within 12 months after the acquisition of Restricted
         Property for the purpose of financing all or any part of the purchase
         price thereof and any Lien to the extent that it secures debt which is
         in excess of such purchase price and for the payment of which recourse
         may be had only against such Restricted Property;

                           (5) any Lien to secure any debt incurred prior to, at
         the time of, or within 12 months after the completion of the
         construction and commencement of commercial operation, alteration,
         repair or improvement of Restricted Property for the purpose of
         financing all or any part of the cost thereof and any Lien to the

                                       20
<PAGE>
         extent that it secures debt which is in excess of such cost and for the
         payment of which recourse may be had only against such Restricted
         Property;

                           (6) any Lien securing debt of a Subsidiary owing to
         the Company or to another Subsidiary;

                           (7) any Lien in favor of the United States of America
         or any State thereof or any other country, or any agency,
         instrumentality of political subdivision try of any of the foregoing,
         to secure partial, progress, advance or other payments or performance
         pursuant to the provisions of any contract or statute, or any Liens
         securing industrial development, pollution control, or similar revenue
         bonds;

                           (8) Liens imposed by law, such as mechanics',
         workmen's, repairmen's, materialmen's, carriers', warehousemen's,
         vendors' or other similar Liens arising in the ordinary course of
         business, or governmental (federal, state or municipal) Liens arising
         out of contracts for the sale of products or services by the Company or
         any Subsidiary, or deposits or pledges to obtain the release of any of
         the foregoing;

                           (9) pledges or deposits under workmen's compensation
         laws or similar legislation and Liens of judgments thereunder which are
         not currently dischargeable, or good faith deposits in connection with
         bids, tenders, contracts (other than for the payment of money) or
         leases to which the Company or any Subsidiary is a party, or deposits
         to secure public or statutory obligations of the Company or any
         Subsidiary, or deposits in connection with obtaining or maintaining
         self-insurance or to obtain the benefits of any law, regulation or
         arrangement pertaining to unemployment insurance, old age pensions,
         social security or similar matters, or deposits of cash or obligations
         of the United States of America to secure surety, appeal or customs
         bonds to which the Company or any Subsidiary is a party, or deposits in
         litigation or other proceedings such as, but not limited to,
         interpleader proceedings;

                           (10) Liens created by or resulting from any
         litigation or other proceeding which is being contested in good faith
         by appropriate proceedings, including Liens arising out of judgments or
         awards against the Company or any Subsidiary with respect to which the
         Company or such Subsidiary is in good faith prosecuting an appeal or
         proceedings for review; or Liens incurred by the Company or any
         Subsidiary for the purpose of obtaining a stay or discharge in the
         course of any litigation or other proceeding to which the Company or
         such Subsidiary is a party;

                           (11) Liens for taxes or assessments or governmental
         charges or levies not yet due or delinquent, or which can thereafter be
         paid without penalty, or which are being contested in good faith by
         appropriate proceedings;

                                       21
<PAGE>
                           (12) any extension, renewal or replacement (or
         successive extensions, renewals or replacements) in whole or in part of
         any Lien referred to in clauses (1) through (11) above, so long as the
         principal amount of the debt secured thereby does not exceed the
         principal amount of debt so secured at the time of the extension,
         renewal or replacement (except that, where an additional principal
         amount of debt is incurred to provide funds for the completion of a
         specific project, the additional principal amount, and any related
         financing costs, may be secured by the Lien as well) and the Lien is
         limited to the same property subject to the Lien so extended, renewed
         or replaced (plus improvements on the property); and

                           (13) any Lien not permitted by clauses (1) through
         (12) above securing debt that, together with the aggregate outstanding
         principal amount of all other debt of the Company and its Subsidiaries
         secured by Liens which would otherwise be prohibited by the foregoing
         restrictions and the aggregate Value of existing Sale and Leaseback
         Transactions which would be subject to the restrictions of Section 1010
         but for this clause (13), does not at any time exceed 10% of
         Consolidated Net Tangible Assets.

         SECTION 1010  Limitation on Sale And Leasebacks.

                  The Company shall not enter into any Sale and Leaseback
         Transaction covering any Restricted Property, nor permit any Subsidiary
         so to do, unless either:

                  (1) the Company or such Subsidiary would be entitled to incur
         debt, in a principal amount at least equal to the Value of such Sale
         and Leaseback Transaction, which is secured by Liens on the property to
         be leased (without equally and ratably securing the Outstanding 2015
         Notes) because such Liens would be of such character that no violation
         of the provisions of Section 1009 would result, or

                  (2) the Company during the six months immediately following
         the effective date of such Sale and Leaseback Transaction causes to be
         applied to (A) the acquisition of Restricted Property or (B) the
         voluntary retirement of Funded Debt (whether by redemption, defeasance,
         repurchase, or otherwise) an amount equal to the Value of such Sale and
         Leaseback Transaction.

                                 ARTICLE THREE

                            MISCELLANEOUS PROVISIONS

Section 301  Integral Part.

         This Fifth Supplemental Indenture constitutes an integral part of the
Indenture with respect to the 2015 Notes only.

                                       22
<PAGE>
Section 302  General Definitions.

         For all purposes of this Fifth Supplemental Indenture:

         (a) capitalized terms used herein without definition shall have the
meanings specified in the Indenture; and

         (b) the terms "herein", "hereof', "hereunder" and other words of
similar import refer to this Fifth Supplemental Indenture.

Section 303  Adoption, Ratification and Confirmation.

         The Indenture, as supplemented and amended by this Fifth Supplemental
Indenture, is in all respects hereby adopted, ratified and confirmed, and this
Fifth Supplemental Indenture shall be deemed part of the Indenture in the manner
and to the extent herein and therein provided. The provisions of this Fifth
Supplemental Indenture shall, subject to the terms hereof, supersede the
provisions of the Indenture to the extent the Indenture is inconsistent
herewith.

Section 304  Counterparts.

         This Fifth Supplemental Indenture may be executed in any number of
counterparts, each of which when so executed shall be deemed an original; and
all such counterparts shall together constitute but one and the same instrument.

Section 305  Governing Law.

         THIS FIFTH SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE
CONFLICTS OF LAW RULES OF SAID STATE.

Section 306  Conflict of Any Provision of Indenture with Trust Indenture Act
of 1939.

         If and to the extent that any provision of this Fifth Supplemental
Indenture limits, qualifies or conflicts with a provision required under the
terms of the Trust Indenture Act of 1939, as amended, such Trust Indenture Act
provision shall control.

Section 307  Effect of Headings.

         The Article and Section headings herein are for convenience only and
shall not affect the construction hereof.

Section 308  Severability of Provisions.

         In case any provision in this Fifth Supplemental Indenture or in the
2015 Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

                                       23
<PAGE>
Section 309  Successors and Assigns.

         All covenants and agreements in this Fifth Supplemental Indenture by
the parties hereto shall bind their respective successors and assigns and inure
to the benefit of their respective successors and assigns, whether so expressed
or not.

Section 310  Benefit of Fifth Supplemental Indenture.

         Nothing in this Fifth Supplemental Indenture, express or implied, shall
give to any Person, other than the parties hereto, any Security Registrar, any
Paying Agent, and their successors hereunder, and the Holders of the 2015 Notes,
any benefit or any legal or equitable right, remedy or claim under this Fifth
Supplemental Indenture.

Section 311  Acceptance by Trustee.

         The Trustee accepts the amendments to the Indenture effected by this
Fifth Supplemental Indenture and agrees to execute the trusts created by the
Indenture as hereby amended, but only upon the terms and conditions set forth in
this Fifth Supplemental Indenture and the Indenture. Without limiting the
generality of the foregoing, the Trustee assumes no responsibility for the
correctness of the recitals contained herein, which shall be taken as the
statements of the Company and except as provided in the Indenture the Trustee
shall not be responsible or accountable in any way whatsoever for or with
respect to the validity or execution or sufficiency of this Fifth Supplemental
Indenture and the Trustee makes no representation with respect thereto.

                                       24
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Fifth
Supplemental Indenture to be duly executed and their respective corporate seals
to be hereunto fixed and attested as of the day and year first written above.

                            DIAMOND OFFSHORE DRILLING, INC.

                            By:   /s/ William C. Long
                                  ----------------------------------------------
                                  William C. Long
                                  Vice President, General Counsel and Secretary

                            JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
                            as Trustee

                            By:   /s/ James D. Heaney
                                 -----------------------------------------------
                                 James D. Heaney
                                 Vice President

                                       25
<PAGE>

STATE OF TEXAS         }

COUNTY OF HARRIS       }

         On the 14th day of June, 2005, before me personally appeared William C.
Long, to me known, who, being by me duly sworn, did depose and say that he is
Vice President, General Counsel and Secretary of DIAMOND OFFSHORE DRILLING,
INC., one of the corporations described in and which executed the foregoing
instrument; that he knows the seal of said corporation; that the seal affixed to
said instrument is such corporate seal; that it was so affixed by authority of
the Board Directors of said corporation, and that he signed his name thereto by
like authority.

Rosa E. Garcia
Notary Public, State of Texas
Comm. Exp. 01-15-2007

                                         /s/ Rosa E. Garcia
                                         ---------------------------------------
                                                        Notary

STATE OF NEW YORK      }

COUNTY OF NEW YORK     }

         On the 14th day of June, 2005, before me personally appeared James D.
Heaney, to me known, who, being by me duly sworn, did depose and say that such
person is a Vice President of JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, one of
the corporations described in and which executed the foregoing instrument; that
he knows the seal of said corporation; that the seal affixed to said instrument
is such corporate seal; that it was so affixed by authority of the Board
Directors of said corporation, and that such person signed his name thereto by
like authority.

                                         /s/ Dana Green
                                         ---------------------------------------
                                                         Notary
                                                       Dana Green
                                             Notary Public, State of New York
                                                     No. 01GR6113125
                                               Qualified in New York County
                                             Commission Expires July 19, 2008

<PAGE>
                                                                         ANNEX A

                                 GLOBAL SECURITY

                           [FORM OF FACE OF SECURITY]

         [THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE
NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED
IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR
A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

         TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A
SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN ARTICLE ONE OF THE INDENTURE REFERRED TO ON THE
REVERSE HEREOF.](1)

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

(1) These paragraphs should be included only if the Security is a Global
Security.

                                      A-1
<PAGE>

         [THIS SECURITY (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), WAS ORIGINALLY
ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT, AND
MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS
SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON
THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY
RULE 144A OR REGULATION S THEREUNDER.

         THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES THAT THIS
SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A)
BY THE INITIAL INVESTOR (1) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (2) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A
PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (3) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE
903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, OR (4) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER (IF AVAILABLE) OR (5) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS
BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, AND (B) BY SUBSEQUENT
INVESTORS, AS SET FORTH IN (A) ABOVE AND, IN ADDITION, TO AN INSTITUTIONAL
"ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2), (3) OR (7)
OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL "ACCREDITED INVESTOR," IN A
TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, OR
(C) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO
ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (B) OR (C) TO REQUIRE THE
DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE
OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS
COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE AND IN EACH CASE IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
AND OTHER JURISDICTIONS. THE HOLDER HEREOF, BY PURCHASING THIS SECURITY,
REPRESENTS AND AGREES FOR THE BENEFIT OF THE COMPANY THAT IT IS (1) A QUALIFIED
INSTITUTIONAL BUYER OR (2) NOT A U.S. PERSON AND IS OUTSIDE THE UNITED STATES
WITHIN THE MEANING OF (OR AN ACCOUNT SATISFYING THE REQUIREMENTS OF PARAGRAPH
(k) (2) OF RULE 902 UNDER) REGULATION S UNDER THE SECURITIES ACT, AND WILL NOT,
DIRECTLY OR INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTION WITH REGARD TO THIS
SECURITY EXCEPT AS PERMITTED BY THE SECURITIES ACT, AND WILL ALSO, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE

                                      A-2
<PAGE>

FROM IT OF THE RESALE RESTRICTIONS REFERRED TO ABOVE. THIS LEGEND WILL BE
REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE DATE WHICH IS TWO YEARS AFTER
THE LATER OF THE ORIGINAL ISSUANCE OF THE NOTES AND THE LAST DATE ON WHICH THE
COMPANY OR AN AFFILIATE OF THE COMPANY WAS THE OWNER OF THE SECURITY.]2

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

(2) These paragraphs to be included only if the Security is a Transfer
Restricted Security.

                                      A-3
<PAGE>
                           [FORM OF FACE OF SECURITY]

                         DIAMOND OFFSHORE DRILLING, INC.

                          4.875% SENIOR NOTES DUE 2015

Issue Date: June 14, 2005                        Principal Amount: $____________

                                                 CUSIP: [25271C AH 5]
                                                        [U25265 AB 2]

Registered: No. [R-] [S-]                        ISIN: [US25271CAH51]
                                                       [USU25265AB23]

         Diamond Offshore Drilling, Inc., a Delaware corporation (herein called
the "Company", which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to Cede &
Co., or registered assigns, the principal sum of _____________________________
DOLLARS ($_____________) on July 1, 2015, [or such greater or lesser amount as
is indicated in the Schedule of Exchanges of Securities on the other side of
this 2015 Note]3 and to pay interest thereon from June 14, 2005 or from the most
recent date to which interest has been paid or duly provided for, semiannually
on January 1 and July 1 in each year (each, an "Interest Payment Date"),
commencing January 1, 2006, at the rate of 4.875% per annum, until the principal
hereof is paid or duly made available for payment. Interest on these 2015 Notes
shall be calculated on the basis of a 360-day year consisting of twelve 30-day
months. The interest so payable and punctually paid or duly provided for on any
Interest Payment Date will, as provided in such Indenture, be paid to the Person
in whose name this 2015 Note (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the December 15 or June 15 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Any
interest which is payable, but is not punctually paid or duly provided for, on
any Interest Payment Date shall forthwith cease to be payable to the registered
Holder hereof on the relevant Regular Record Date by virtue of having been such
Holder, and may be paid to the Person in whose name this 2015 Note (or one or
more Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Company, notice whereof shall be given to the Holders of 2015 Notes not less
than 10 days prior to such Special Record Date, or may be paid at any time in
any other lawful manner not inconsistent with the requirements of any securities
exchange on which the 2015 Notes may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in such Indenture.

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

(3) To be included only if the Security is a Global Security.

                                      A-4
<PAGE>
         Payment of the principal of and interest, if any, on this 2015 Note
will be made at the office or agency of the Company maintained for that purpose
in The City of New York, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts; provided, however, that at the option of the Company, payment of
interest, if any, may be made by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register.

         Reference is hereby made to the further provisions of this 2015 Note
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature, this 2015
Note shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

                                      A-5
<PAGE>
         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:
      ---------------------------------

                                       DIAMOND OFFSHORE DRILLING, INC.

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

-----------------------------
Corporate Secretary

                                      A-6
<PAGE>
                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                       JPMORGAN CHASE BANK, NATIONAL
                                       ASSOCIATION, as Trustee

                                       -----------------------------------------
                                       Authorized Signature

Date of Authentication: _______________

                                      A-7
<PAGE>
                       [FORM OF REVERSE SIDE OF SECURITY]

                         DIAMOND OFFSHORE DRILLING, INC.

                          4.875% SENIOR NOTES DUE 2015

         This Security is one of a duly authorized issue of senior securities of
the Company (herein called the "Securities"), issued and to be issued in one or
more series under an Indenture, dated as of February 4, 1997, as amended by the
Fifth Supplemental Indenture thereto, dated as of June 14, 2005 (as so amended,
herein called the "Indenture"), between the Company and JPMorgan Chase Bank,
National Association (formerly known as The Chase Manhattan Bank), as Trustee
(herein called the "Trustee", which term includes any successor trustee under
the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof (herein called the "2015 Notes"), limited in
aggregate principal amount to $250,000,000 created pursuant to the Fifth
Supplemental Indenture. Capitalized terms used and not otherwise defined in this
2015 Note are used as defined in the Indenture.

         The 2015 Notes are general unsecured and unsubordinated obligations of
the Company. The Indenture does not limit other indebtedness of the Company,
secured or unsecured.

INTEREST ON OVERDUE AMOUNTS

         If the principal amount hereof or any portion of such principal amount
is not paid when due (whether upon acceleration pursuant to Section 502 of the
Indenture, upon the date set for payment of the Redemption Price as described
under "Optional Redemption" or upon the Stated Maturity of this 2015 Note) or if
interest due hereon, if any (or any portion of such interest), is not paid when
due, then in each such case the overdue amount shall, to the extent permitted by
law, bear interest at the rate of 4.875% per annum, compounded semiannually,
which interest shall accrue from the date such overdue amount was originally due
to the date payment of such amount, including interest thereon, has been made or
duly provided for. All such interest shall be payable as set forth in the
Indenture.

METHOD OF PAYMENT

         Payments in respect of principal of and interest, if any, on the 2015
Notes shall be made by the Company in immediately available funds.

PAYING AGENT AND SECURITY REGISTRAR

         Initially, the Trustee will act as Paying Agent and Security Registrar.
The Company may appoint and change any Paying Agent, Security Registrar or
co-registrar without notice, other than notice to the Trustee, except that the
Company will maintain at least one Paying Agent in the State of New York, City
of New York, Borough of Manhattan, which shall initially be an office or agency
of the Trustee. The Company or any of its Subsidiaries or any of their
Affiliates may act as Paying Agent, Security Registrar or co-registrar.

                                      A-8
<PAGE>
OPTIONAL REDEMPTION

         No sinking fund is provided for the 2015 Notes. The 2015 Notes are
redeemable in whole at any time, or in part from time to time, at the option of
the Company in accordance with the Indenture at a Redemption Price equal to the
greater of (i) 100% of the principal amount of the 2015 Notes to be redeemed or
(ii) the sum, as determined by the Quotation Agent, of the present values of the
principal amount of the 2015 Notes to be redeemed and the remaining scheduled
payments of interest thereon from the Redemption Date to Maturity of the 2015
Notes to be redeemed (the "Remaining Life"), discounted from their respective
scheduled payment dates to the Redemption Date on a semiannual basis (assuming a
360-day year consisting of 30-day months) at the Treasury Rate, plus 20 basis
points (the "Make-Whole Premium"), plus, in either case, accrued and unpaid
interest on the principal amount of the 2015 Notes redeemed to, but excluding,
the Redemption Date.

         If the Company redeems less than all of the Outstanding 2015 Notes, the
Trustee will select the 2015 Notes to be redeemed (i) by lot; (ii) pro rata; or
(iii) by another method the Trustee considers fair and appropriate.

NOTICE OF REDEMPTION

         Notice of redemption will be mailed by first-class mail at least 15
days but not more than 60 days before the Redemption Date to each Holder of the
2015 Notes to be redeemed at its registered address. The 2015 Notes in
denominations larger than $1,000 principal amount may be redeemed in part, but
only in whole multiples of $1,000. On and after the Redemption Date, subject to
the deposit with the Paying Agent of funds sufficient to pay the Redemption
Price and accrued and unpaid interest, all interest shall cease to accrue on the
2015 Notes or portions thereof called for redemption.

TRANSFER

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this 2015 Note is registrable in the Security
Register, upon surrender of this 2015 Note for registration or transfer at the
office or agency in a Place of Payment for the 2015 Notes, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new 2015 Notes,
of any authorized denominations and for the same aggregate principal amount,
executed by the Company and authenticated and delivered by the Trustee, will be
issued to the designated transferee or transferees.

         The Securities are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. As provided in the
Indenture and subject to certain limitations set forth therein and on the face
of this 2015 Note, 2015 Notes are exchangeable for a like aggregate principal
amount of 2015 Notes of a different authorized denomination as requested by the
Holder surrendering the same.

                                      A-9
<PAGE>
         No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.

         Prior to due presentment of this 2015 Note for registration of
transfer, the Company, the Trustee or any agent of the Company or the Trustee
may treat the Person in whose name this 2015 Note is registered as the owner
hereof for all purposes, whether or not this 2015 Note be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

AMENDMENT, SUPPLEMENT AND WAIVER

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company
with certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this 2015 Note shall be conclusive and
binding upon such Holder and upon all future Holders of this 2015 Note and of
any 2015 Notes issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not notation of such consent or waiver is
made upon this 2015 Note.

SUCCESSOR CORPORATION

         When a successor corporation assumes all the obligations of its
predecessor under the 2015 Notes and the Indenture in accordance with the terms
and conditions of the Indenture, the predecessor corporation will (except in
certain circumstances specified in the Indenture) be released from those
obligations.

DEFAULTS AND REMEDIES

         Under the Indenture, Events of Default include (i) default in the
payment of interest when it becomes due and payable or in the payment of any
Liquidated Damages which default in either case continues for a period of 30
days; (ii) default in payment of the principal amount or Redemption Price, as
the case may be, in respect of the Securities when the same becomes due and
payable; (iii) failure by the Company to comply with other agreements in the
Indenture or the Securities, subject to notice and lapse of time; (iv) default
under any bond, debenture, note or other evidence of indebtedness for money
borrowed of the Company or any Subsidiary having an aggregate outstanding
principal amount of in excess of $25,000,000 (excluding such indebtedness of any
Subsidiary other than a Significant Subsidiary, all the indebtedness of which is
nonrecourse to the Company or any other Subsidiary), which default shall be with
respect to payment or shall have resulted in such indebtedness being
accelerated, without such indebtedness being discharged or such acceleration
having been rescinded or annulled, subject to notice and passage of time; and
(v) certain events of bankruptcy, insolvency or reorganization of

                                      A-10
<PAGE>
the Company or any Significant Subsidiary. If an Event of Default with respect
to Securities of this series shall occur and be continuing, the principal amount
through the acceleration date of and accrued and unpaid interest on the
Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture. If an Event of Default occurs as a result
of certain events of bankruptcy, insolvency or reorganization of the Company,
the principal amount of and accrued and unpaid interest on the Securities
Outstanding shall become due and payable immediately without any declaration or
other act on the part of the Trustee or any Holder, all as and to the extent
provided in the Indenture.

NO RECOURSE AGAINST OTHERS

         No recourse shall be had for the payment of the principal of or the
interest, if any, on this 2015 Note, for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Indenture or any indenture
supplemental thereto, against any incorporator, shareholder, officer or
director, as such, past, present or future, of the Company or of any successor
corporation, whether by virtue of any constitution, statute or rule of law or by
the enforcement of any assessment of penalty or otherwise, all such liability
being, by acceptance hereof and as part of the consideration for the issue
hereof, expressly waived and released.

AUTHENTICATION

         This 2015 Note shall not be valid until the Trustee or an
authenticating agent manually signs the certificate of authentication on the
other side of this 2015 Note.

INDENTURE TO CONTROL; GOVERNING LAW

         In the case of any conflict between the provisions of this 2015 Note
and the Indenture, the provisions of the Indenture shall control.

         THE INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE
CONFLICTS OF LAW RULES OF SAID STATE.

ABBREVIATIONS AND DEFINITIONS

         Customary abbreviations may be used in the name of the Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as
tenants in common),

CUST (= Custodian) and U/G/M/A (= Uniform Gifts to Minors Act).

         All terms defined in the Indenture and used in this 2015 Note but not
specifically defined herein are defined in the Indenture and are used herein as
so defined.

                                      A-11
<PAGE>
                     SCHEDULE OF EXCHANGES OF SECURITIES(4)

         The following exchanges or redemptions of a part of this Global
Security have been made:

<Table>
<Caption>
                                            AMOUNT OF DECREASE IN                        AMOUNT OF INCREASE IN
                                           PRINCIPAL AMOUNT OF THIS                     PRINCIPAL AMOUNT OF THE
      DATE OF TRANSACTION                      GLOBAL SECURITY                              GLOBAL SECURITY
--------------------------------     -------------------------------------        ------------------------------------
<S>                                  <C>                                           <C>

</TABLE>

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

(4) This schedule should be included only if the Security is a Global Security.

                                      A-12
<PAGE>

                                   EXHIBIT B-1

                  CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR
               REGISTRATION OF TRANSFER OF RESTRICTED SECURITIES5

         Re:  4.875% Senior Notes due 2015 (the "Securities") of Diamond
              Offshore Drilling, Inc.

         This certificate relates to $___________ principal amount of
         Securities owned in (check applicable box)

         [ ]  book-entry or

         [ ]  definitive form

by                                                          (the "Transferor").
   --------------------------------------------------------

         The Transferor has requested a Security Registrar or the Trustee to
exchange or register the transfer of such Securities.

         In connection with such request and in respect of each such Security,
the Transferor does hereby certify that the Transferor is familiar with transfer
restrictions relating to the Securities as provided in Section 102 of the Fifth
Supplemental Indenture dated as of June 14, 2005 (the "Indenture"), between
Diamond Offshore Drilling, Inc. and JPMorgan Chase Bank, National Association
(formerly known as The Chase Manhattan Bank), as trustee.

         In connection with any transfer of any of the Securities evidenced by
this certificate occurring prior to the expiration of the period referred to in
Rule 144(k) under the Securities Act after the later of the date of original
issuance of the Securities and the last date, if any, on which such Securities
were owned by the Company or any Affiliate of the Company, the undersigned
confirms that such Securities are being transferred in accordance with its
terms:

CHECK ONE BOX BELOW

         (1)   [ ]   to the Company or a subsidiary of the Company; or

         (2)   [ ]   pursuant to an effective registration statement under the
                     Securities Act of 1933; or

         (3)   [ ]   to a "qualified institutional buyer" (as defined
                     in Rule 144A under the Securities Act of 1933) that
                     purchases for its own account or for the account of a
                     qualified institutional buyer to whom notice is given
                     that such

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

(5) This certificate should only be included if this Security is a Transfer
Restricted Security.

                                      B-1-1
<PAGE>
                     transfer is being made in reliance on Rule 144A, in each
                     case pursuant to and in compliance with Rule 144A under
                     the Securities Act of 1933; or

         (4)   [ ]   to an institutional accredited investor, defined in
                     Rule 501(a)(1), (2), (3) or (7) of Regulation D under
                     the Securities Act; or

         (5)   [ ]   pursuant to another available exemption from registration
                     under the Securities Act of 1933.

Unless one of the boxes is checked, the Trustee will refuse to register any of
the Securities evidenced by this certificate in the name of any person other
than the registered holder thereof, provided, however, that if box (4) or (5) is
checked, the Trustee may require, prior to registering any such transfer of the
Securities, such legal opinions, certifications and other information as the
Company has reasonably requested to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933, such as the exemption
provided by Rule 144 under such Act.

                                         ---------------------------------------
                                         Signature

Signature Guarantee:

------------------------------------     ---------------------------------------
Signature must be guaranteed             Signature

              TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

         The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as
the undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying
upon the undersigned's foregoing representations in order to claim the exemption
from registration provided by Rule 144A.

Dated:
      ----------------------     -----------------------------------------------
                                 NOTICE:  To be executed by an executive officer

                                      B-1-2
<PAGE>
                                   EXHIBIT B-2

             FORM OF LETTER TO BE DELIVERED BY ACCREDITED INVESTORS

Diamond Offshore Drilling, Inc.
15415 Katy Freeway
Houston, Texas 77094

Attention:  Corporate Secretary

JPMorgan Chase Bank, National Association, as Security Registrar
Institutional Trust Services
4 New York Plaza, 15th Floor
New York, NY 10004
Attention:  Worldwide Securities Services

Dear Sirs:

         We are delivering this letter in connection with the proposed transfer
of $_____________ principal amount of the 4.875% Senior Notes due 2015 (the
"Notes") of Diamond Offshore Drilling, Inc. (the "Company").

         We hereby confirm that:

                  (i) we are an "accredited investor" within the meaning of Rule
         501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act of
         1933, as amended (the "Securities Act"), or an entity in which all of
         the equity owners are "accredited investors" within the meaning of Rule
         501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act (an
         "Institutional Accredited Investor");

                  (ii) (A) the purchase of Notes by us is for our own account or
         for the account of one or more other Institutional Accredited Investors
         or as fiduciary for the account of one or more trusts, each of which is
         an "accredited investor" within the meaning of Rule 501(a)(7) under the
         Securities Act and for each of which we exercise sole investment
         discretion or (B) we are a "bank," within the meaning of Section
         3(a)(2) of the Securities Act, or a "savings and loan association" or
         other institution described in Section 3(a)(5)(A) of the Securities Act
         that is acquiring Notes as fiduciary for the account of one or more
         institutions for which we exercise sole investment discretion;

                  (iii) we will acquire Notes having a minimum principal amount
         of not less than $100,000 for our own account or for any separate
         account for which we are acting;

                  (iv) we have such knowledge and experience in financial and
         business matters that we are capable of evaluating the merits and risks
         of purchasing Notes; and

                                      B-2-1
<PAGE>
                  (v) we are not acquiring Notes with a view to distribution
         thereof or with any present intention of offering or selling Notes,
         except as permitted below; provided that the disposition of our
         property and property of any accounts for which we are acting as
         fiduciary shall remain at all times within our control.

         We understand that the Notes were originally offered and sold in a
transaction not involving any public offering within the United States within
the meaning of the Securities Act and that the Notes have not been registered
under the Securities Act, and we agree, on our own behalf and on behalf of each
account for which we acquire any Notes, that if in the future we decide to
resell or otherwise transfer such Notes prior to the date (the "Resale
Restriction Termination Date") which is two years after the later of the
original issuance of the Notes and the last date on which the Company or an
affiliate of the Company was the owner of the Note, such Notes may be resold or
otherwise transferred only (i) to the Company or any subsidiary thereof, or (ii)
for as long as the Notes are eligible for resale pursuant to Rule 144A, to a
person we reasonably believe to be a "qualified institutional buyer" (as defined
in Rule 144A under the Securities Act) that purchases for its own account or for
the account of such a qualified institutional buyer to which notice is given
that the transfer is being made in reliance on Rule 144A, or (iii) to an
Institutional Accredited Investor that is acquiring the Notes for its own
account, or for the account of such an Institutional Accredited Investor for
investment purposes and not with a view to, or for offer or sale in connection
with, any distribution in violation of the Securities Act, or (iv) pursuant to
another available exemption from registration under the Securities Act (if
applicable), or (v) pursuant to a registration statement which has been declared
effective under the Securities Act and, in each case, in accordance with any
applicable securities laws of any State of the United States or any other
applicable jurisdiction and in accordance with the legends set forth on the
Notes. We further agree to provide any person purchasing any of the Notes other
than pursuant to clause (v) above from us a notice advising such purchaser that
resales of such Notes are restricted as stated herein. We understand that the
trustee or the transfer agent, as the case may be, for the Notes will not be
required to accept for registration of transfer any Notes pursuant to (iii) or
(iv) above except upon presentation of evidence satisfactory to the Company and
the trustee that the foregoing restrictions on transfer have been complied with.
We further understand that any Notes will be in the form of definitive physical
certificates and that such certificates will bear a legend reflecting the
substance of this paragraph other than certificates representing Notes
transferred pursuant to clause (v) above.

         We acknowledge that the Company, others, the Trustee, the Security
Registrar and you will rely upon our confirmations, acknowledgments and
agreements set forth herein, and we agree to notify you promptly in writing if
any of our representations or warranties herein ceases to be accurate and
complete.

         THIS LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK.

                                        ----------------------------------------
                                        (Name of Purchaser)

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

                                     B-2-2<PAGE>
                                                                     EXHIBIT 4.3

                         DIAMOND OFFSHORE DRILLING, INC.

                          4.875% SENIOR NOTES DUE 2015

                                    -------

                   EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

                                                      June 14, 2005
Goldman, Sachs & Co.,
85 Broad Street
New York, New York 10004

Ladies and Gentlemen:

      Diamond Offshore Drilling, Inc., a Delaware corporation (the "Company"),
proposes to issue and sell to Goldman, Sachs & Co. (the "Purchaser") upon the
terms set forth in the Purchase Agreement (as defined herein) its 4.875% Senior
Notes due 2015. As an inducement to the Purchaser to enter into the Purchase
Agreement and in satisfaction of a condition to the obligations of the Purchaser
thereunder, the Company agrees with the Purchaser for the benefit of holders (as
defined herein) from time to time of the Registrable Securities (as defined
herein) as follows:

      1. Certain Definitions. For purposes of this Exchange and Registration
Rights Agreement, the following terms shall have the following respective
meanings:

      "Base Interest" shall mean the interest that would otherwise accrue on the
   Securities under the terms thereof and the Indenture, without giving effect
   to the provisions of this Agreement.

      The term "broker-dealer" shall mean any broker or dealer registered with
   the Commission under the Exchange Act.

      "Closing Date" shall mean the date on which the Securities are initially
   issued.

      "Commission" shall mean the United States Securities and Exchange
   Commission, or any other federal agency at the time administering the
   Exchange Act or the Securities Act, whichever is the relevant statute for the
   particular purpose.

      "Effective Time," in the case of (i) an Exchange Registration, shall mean
   the time and date as of which the Commission declares the Exchange
   Registration Statement effective or as of which the Exchange Registration
   Statement otherwise becomes effective and (ii) a Shelf Registration, shall
   mean the time and date as of which the Commission declares the Shelf
   Registration Statement effective or as of which the Shelf Registration
   Statement otherwise becomes effective.

      "Electing Holder" shall mean any holder of Registrable Securities that has
   returned a completed and signed Notice and Questionnaire to the Company in
   accordance with Section 3(d)(ii) or 3(d)(iii) hereof.

                                       1
<PAGE>
      "Exchange Act" shall mean the Securities Exchange Act of 1934, or any
   successor thereto, as the same shall be amended from time to time.

      "Exchange Offer" shall have the meaning assigned thereto in Section 2(a)
   hereof.

      "Exchange Registration" shall have the meaning assigned thereto in Section
   3(c) hereof.

      "Exchange Registration Statement" shall have the meaning assigned thereto
   in Section 2(a) hereof.

      "Exchange Securities" shall have the meaning assigned thereto in Section
   2(a) hereof.

      The term "holder" shall mean the Purchaser and other persons who acquire
   Registrable Securities from time to time (including any successors or
   assigns), in each case for so long as such person owns any Registrable
   Securities.

      "Indenture" shall mean the Indenture, dated as of February 4, 1997,
   between the Company and The Chase Manhattan Bank (now known as JPMorgan Chase
   Bank, National Association), as Trustee, as supplemented by a fifth
   supplemental indenture dated as of June 14, 2005, as the same shall be
   amended from time to time.

      "Notice and Questionnaire" means a Notice of Registration Statement and
   Selling Securityholder Questionnaire substantially in the form of Exhibit A
   hereto.

      The term "person" shall mean a corporation, association, partnership,
   organization, business, individual, government or political subdivision
   thereof or governmental agency.

      "Purchase Agreement" shall mean the Purchase Agreement, dated as of June
   9, 2005, between the Purchaser and the Company relating to the Securities.

      "Purchaser" shall mean Goldman, Sachs & Co.

      "Registrable Securities" shall mean the Securities; provided, however,
   that a Security shall cease to be a Registrable Security when (i) in the
   circumstances contemplated by Section 2(a) hereof, the Security has been
   exchanged for an Exchange Security in an Exchange Offer as contemplated in
   Section 2(a) hereof (provided that any Exchange Security that, pursuant to
   the last two sentences of Section 2(a), is included in a prospectus for use
   in connection with resales by broker-dealers shall be deemed to be a
   Registrable Security with respect to Sections 5, 6 and 9 until resale of such
   Registrable Security has been effected within the 180-day period referred to
   in Section 2(a)); (ii) in the circumstances contemplated by Section 2(b)
   hereof, a Shelf Registration Statement registering such Security under the
   Securities Act has been declared or becomes effective and such Security has
   been sold or otherwise transferred by the holder thereof pursuant to and in a
   manner contemplated by such effective Shelf Registration Statement; (iii)
   such Security is sold pursuant to Rule 144 under circumstances in which any
   legend borne by such Security relating to restrictions on transferability
   thereof, under the Securities Act or otherwise, is removed by the Company or
   pursuant to the Indenture; (iv) such Security is eligible to be sold pursuant
   to paragraph (k) of Rule 144; or (v) such Security shall cease to be
   outstanding.

      "Registration Default" shall have the meaning assigned thereto in Section
   2(c) hereof.

      "Registration Expenses" shall have the meaning assigned thereto in Section
   4 hereof.

                                       2
<PAGE>
      "Resale Period" shall have the meaning assigned thereto in Section 2(a)
   hereof.

      "Restricted Holder" shall mean (i) a holder that is an affiliate of the
   Company within the meaning of Rule 405, (ii) a holder who acquires Exchange
   Securities outside the ordinary course of such holder's business, (iii) a
   holder who has arrangements or understandings with any person to participate
   in the Exchange Offer for the purpose of distributing Exchange Securities and
   (iv) a holder that is a broker-dealer, but only with respect to Exchange
   Securities received by such broker-dealer pursuant to an Exchange Offer in
   exchange for Registrable Securities acquired by the broker-dealer directly
   from the Company.

      "Rule 144," "Rule 405" and "Rule 415" shall mean, in each case, such rule
   promulgated under the Securities Act (or any successor provision), as the
   same shall be amended from time to time.

      "Securities" shall mean, collectively, the 4.875% Senior Notes due 2015 of
   the Company to be issued and sold to the Purchaser, and securities issued in
   exchange therefor or in lieu thereof pursuant to the Indenture.

      "Securities Act" shall mean the Securities Act of 1933, or any successor
   thereto, as the same shall be amended from time to time.

      "Shelf Registration" shall have the meaning assigned thereto in Section
   2(b) hereof.

      "Shelf Registration Statement" shall have the meaning assigned thereto in
   Section 2(b) hereof.

      "Special Interest" shall have the meaning assigned thereto in Section 2(c)
   hereof.

      "Trust Indenture Act" shall mean the Trust Indenture Act of 1939, or any
   successor thereto, and the rules, regulations and forms promulgated
   thereunder, all as the same shall be amended from time to time.

      Unless the context otherwise requires, any reference herein to a "Section"
or "clause" refers to a Section or clause, as the case may be, of this Exchange
and Registration Rights Agreement, and the words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Exchange and
Registration Rights Agreement as a whole and not to any particular Section or
other subdivision.

      2. Registration Under the Securities Act.

      (a) Except as set forth in Section 2(b) below, the Company agrees to file
   under the Securities Act no later than 150 days after the Closing Date, a
   registration statement relating to an offer to exchange (such registration
   statement, the "Exchange Registration Statement", and such offer, the
   "Exchange Offer") any and all of the Securities for a like aggregate
   principal amount of debt securities issued by the Company, which debt
   securities are substantially identical in all material respects to the
   Securities (and are entitled to the benefits of a trust indenture which is
   substantially identical in all material respects to the Indenture or is the
   Indenture and which has been qualified under the Trust Indenture Act), except
   that they have been registered pursuant to an effective registration
   statement under the Securities Act and do not contain provisions for the
   additional interest contemplated in Section 2(c) below (such new debt
   securities hereinafter called "Exchange Securities"). The Company agrees to
   use its reasonable efforts to cause the Exchange Registration Statement to
   become effective under the Securities Act no later than 210 days after the
   Closing Date. The Exchange Offer will be registered under the Securities Act
   on the

                                       3
<PAGE>
   appropriate form and will comply with all applicable tender offer rules and
   regulations under the Exchange Act. The Company further agrees, unless the
   Exchange Offer would not be permitted by applicable law or Commission policy,
   to use its reasonable best efforts to commence and complete the Exchange
   Offer promptly, but no later than 45 days after such registration statement
   has become effective, hold the Exchange Offer open for at least 30 days and
   exchange Exchange Securities for all Registrable Securities that have been
   properly tendered and not withdrawn on or prior to the expiration of the
   Exchange Offer. The Exchange Offer will be deemed to have been "completed"
   only if the debt securities received by holders other than Restricted Holders
   in the Exchange Offer for Registrable Securities are, upon receipt,
   transferable by each such holder without restriction under the Securities Act
   and the Exchange Act and without material restrictions under the blue sky or
   securities laws of a substantial majority of the States of the United States
   of America. The Exchange Offer shall be deemed to have been completed upon
   the earlier to occur of (i) the Company having exchanged the Exchange
   Securities for all outstanding Registrable Securities pursuant to the
   Exchange Offer and (ii) the Company having exchanged, pursuant to the
   Exchange Offer, Exchange Securities for all Registrable Securities that have
   been properly tendered and not withdrawn before the expiration of the
   Exchange Offer, which shall be on a date that is at least 30 days following
   the commencement of the Exchange Offer. The Company agrees (x) to include in
   the Exchange Registration Statement a prospectus for use in any resales by
   any holder of Exchange Securities that is a broker-dealer and (y) to keep
   such Exchange Registration Statement effective for a period (the "Resale
   Period") beginning when Exchange Securities are first issued in the Exchange
   Offer and ending upon the earlier of the expiration of the 180th day after
   the Exchange Offer has been completed or such time as such broker-dealers no
   longer own any Registrable Securities. With respect to such Exchange
   Registration Statement, such holders shall have the benefit of the rights of
   indemnification and contribution set forth in Sections 6(a), (c), (d) and (e)
   hereof.

      (b) If (i) on or prior to the time the Exchange Offer is completed
   existing Commission interpretations are changed such that the debt securities
   received by holders other than Restricted Holders in the Exchange Offer for
   Registrable Securities are not or would not be, upon receipt, transferable by
   each such holder without restriction under the Securities Act, (ii) the
   Exchange Offer has not been completed within 255 days following the Closing
   Date or (iii) a holder of the Securities notifies the Company in writing,
   prior to the 20th day following the time the Exchange Offer is completed,
   that the Exchange Offer is not available to such holder of the Securities,
   the Company shall, in lieu of (or, in the case of clause (iii), in addition
   to) conducting the Exchange Offer contemplated by Section 2(a), file under
   the Securities Act as soon as reasonably practicable, but no later than 60
   days after the time such obligation to file arises, a "shelf" registration
   statement providing for the registration of, and the sale on a continuous or
   delayed basis by the holders of, all of the Registrable Securities, pursuant
   to Rule 415 or any similar rule that may be adopted by the Commission (such
   filing, the "Shelf Registration" and such registration statement, the "Shelf
   Registration Statement"). The Company agrees to use its reasonable efforts
   (x) to cause the Shelf Registration Statement to become or be declared
   effective no later than 120 days after such Shelf Registration Statement is
   filed and to keep such Shelf Registration Statement continuously effective
   for a period ending on the earlier of the second anniversary of the Effective
   Time or such time as there are no longer any Registrable Securities
   outstanding, provided, however, that no holder shall be entitled to be named
   as a selling securityholder in the Shelf Registration Statement or to use the
   prospectus forming a part thereof for resales of Registrable Securities
   unless such holder is an Electing Holder and has provided the Company the
   information required by applicable law to be included in the Shelf
   Registration Statement with respect to such Electing Holder, and (y) after
   the Effective Time of the Shelf

                                       4
<PAGE>
   Registration Statement, promptly upon the request of any holder of
   Registrable Securities that is not then an Electing Holder, to take any
   action reasonably necessary to enable such holder to use the prospectus
   forming a part thereof for resales of Registrable Securities, including,
   without limitation, any action necessary to identify such holder as a selling
   securityholder in the Shelf Registration Statement, provided, however, that
   nothing in this Clause (y) shall relieve any such holder of the obligation to
   return a completed and signed Notice and Questionnaire to the Company in
   accordance with Section 3(d) (ii) or 3(d)(iii) hereof, as applicable, and to
   provide the Company with all information required by applicable law to be
   included in the Shelf Registration Statement with respect to such holder. The
   Company further agrees to supplement or make amendments to the Shelf
   Registration Statement, as and when required by the rules, regulations or
   instructions applicable to the registration form used by the Company for such
   Shelf Registration Statement or by the Securities Act or rules and
   regulations thereunder for shelf registration, and the Company agrees to
   furnish to each Electing Holder copies of any such supplement or amendment
   prior to its being used or promptly following its filing with the Commission.

      (c) In the event that (i) the Company has not filed the Exchange
   Registration Statement or Shelf Registration Statement on or before the date
   on which such registration statement is required to be filed pursuant to
   Section 2(a) or 2(b), respectively, or (ii) such Exchange Registration
   Statement or Shelf Registration Statement has not become effective or been
   declared effective by the Commission on or before the date on which such
   registration statement is required to become or be declared effective
   pursuant to Section 2(a) or 2(b), respectively, or (iii) the Exchange Offer
   has not been completed within 45 days after the initial effective date of the
   Exchange Registration Statement relating to the Exchange Offer (if the
   Exchange Offer is then required to be made), or (iv) any Exchange
   Registration Statement or Shelf Registration Statement required by Section
   2(a) or 2(b) hereof is filed and declared effective but shall thereafter
   either be withdrawn by the Company or shall become subject to an effective
   stop order issued pursuant to Section 8(d) of the Securities Act suspending
   the effectiveness of such registration statement (except as specifically
   permitted herein) without being succeeded promptly by an additional
   registration statement filed and declared effective, or (v) any Shelf
   Registration Statement required by Section 2(b) hereof is filed and declared
   effective but shall thereafter be suspended by the Company pursuant to
   Section 3(h) hereof (each such event referred to in clauses (i) through (v),
   a "Registration Default" and each period during which a Registration Default
   has occurred and is continuing, a "Registration Default Period"), then, as
   liquidated damages for such Registration Default, subject to the provisions
   of Section 9(b), special interest ("Special Interest"), in addition to the
   Base Interest, shall accrue at a per annum rate of 0.25% for the first 90
   days of the Registration Default Period, at a per annum rate 0.50% thereafter
   for the remaining portion of the Registration Default Period. In no event
   shall Special Interest in respect of a Registration Default exceed a per
   annum rate of 0.50%.

      (d) The Company shall use its reasonable best efforts to take all actions
   necessary or advisable to be taken by it to ensure that the transactions
   contemplated herein are effected as so contemplated.

      (e) Any reference herein to a registration statement as of any time shall
   be deemed to include any document incorporated, or deemed to be incorporated,
   therein by reference as of such time and any reference herein to any
   post-effective amendment to a registration statement as of any time shall be
   deemed to include any document incorporated, or deemed to be incorporated,
   therein by reference as of such time.

                                       5
<PAGE>
      3. Registration Procedures.

      If the Company files a registration statement pursuant to Section 2(a) or
Section 2(b), the following provisions shall apply:

      (a) At or before the Effective Time of the Exchange Offer or the Shelf
   Registration, as the case may be, the Company shall qualify the Indenture
   under the Trust Indenture Act of 1939.

      (b) In the event that such qualification would require the appointment of
   a new trustee under the Indenture, the Company shall appoint a new trustee
   thereunder pursuant to the applicable provisions of the Indenture.

      (c) In connection with the Company's obligations with respect to the
   registration of Exchange Securities as contemplated by Section 2(a) (the
   "Exchange Registration"), if applicable, the Company shall, as soon as
   reasonably practicable (or as otherwise specified):

         (i) prepare and file with the Commission no later than 150 days after
      the Closing Date, an Exchange Registration Statement on any form which may
      be utilized by the Company and which shall permit the Exchange Offer and
      resales of Exchange Securities by broker-dealers during the Resale Period
      to be effected as contemplated by Section 2(a), and use its reasonable
      efforts to cause such Exchange Registration Statement to become effective
      no later than 210 days after the Closing Date;

         (ii) as soon as reasonably practicable prepare and file with the
      Commission such amendments and supplements to such Exchange Registration
      Statement and the prospectus included therein as may be necessary to
      effect and maintain the effectiveness of such Exchange Registration
      Statement for the periods and purposes contemplated in Section 2(a) hereof
      and as may be required by the applicable rules and regulations of the
      Commission and the instructions applicable to the form of such Exchange
      Registration Statement, and promptly provide each broker-dealer holding
      Exchange Securities with such number of copies of the prospectus included
      therein (as then amended or supplemented), in conformity in all material
      respects with the requirements of the Securities Act and the Trust
      Indenture Act and the rules and regulations of the Commission thereunder,
      as such broker-dealer reasonably may request prior to the expiration of
      the Resale Period, for use in connection with resales of Exchange
      Securities;

         (iii) promptly notify each broker-dealer that has requested or received
      copies of the prospectus included in such registration statement, and
      confirm such advice in writing, (A) when such Exchange Registration
      Statement or the prospectus included therein or any prospectus amendment
      or supplement or post-effective amendment has been filed, and, with
      respect to such Exchange Registration Statement or any post-effective
      amendment, when the same has become effective, (B) of any comments by the
      Commission and by the blue sky or securities commissioner or regulator of
      any state with respect thereto or any request by the Commission for
      amendments or supplements to such Exchange Registration Statement or
      prospectus or for additional information, (C) of the issuance by the
      Commission of any stop order suspending the effectiveness of such Exchange
      Registration Statement or the initiation or threatening of any proceedings
      for that purpose, (D) if at any time the representations and warranties of
      the Company contemplated by Section 5 cease to be true and correct in all
      material respects, (E) of the receipt by the Company of any notification
      with respect to the suspension of the qualification of the Exchange
      Securities for sale in any jurisdiction or the initiation or threatening
      of

                                       6
<PAGE>
      any proceeding for such purpose, or (F) at any time during the Resale
      Period when a prospectus is required to be delivered under the Securities
      Act, that such Exchange Registration Statement, prospectus, prospectus
      amendment or supplement or post-effective amendment does not conform in
      all material respects to the applicable requirements of the Securities Act
      and the Trust Indenture Act and the rules and regulations of the
      Commission thereunder or contains 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 not misleading in light of the
      circumstances then existing;

         (iv) in the event that the Company would be required, pursuant to
      Section 3(c)(iii)(F) above, to notify any broker-dealers holding Exchange
      Securities, without delay prepare and furnish to each such holder a
      reasonable number of copies of a prospectus supplemented or amended so
      that, as thereafter delivered to purchasers of such Exchange Securities
      during the Resale Period, such prospectus shall conform in all material
      respects to the applicable requirements of the Securities Act and the
      Trust Indenture Act and the rules and regulations of the Commission
      thereunder and shall not contain 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 not misleading in light of the
      circumstances then existing;

         (v) use its reasonable best efforts to obtain the withdrawal of any
      order suspending the effectiveness of such Exchange Registration Statement
      or any post-effective amendment thereto at the earliest practicable date;

         (vi) use its reasonable best efforts to (A) register or qualify the
      Exchange Securities under the securities laws or blue sky laws of such
      jurisdictions as are contemplated by Section 2(a) no later than the
      commencement of the Exchange Offer, (B) keep such registrations or
      qualifications in effect and comply with such laws so as to permit the
      continuance of offers, sales and dealings therein in such jurisdictions
      until the expiration of the Resale Period and (C) take any and all other
      actions as may be reasonably necessary or advisable to enable each
      broker-dealer holding Exchange Securities to consummate the disposition
      thereof in such jurisdictions; provided, however, that the Company shall
      not be required for any such purpose to (1) qualify as a foreign
      corporation in any jurisdiction wherein it would not otherwise be required
      to qualify but for the requirements of this Section 3(c)(vi), (2) consent
      to general service of process or subject itself to material taxation in
      any such jurisdiction or (3) make any changes to its certificate of
      incorporation or by-laws or any agreement between it and its stockholders;

         (vii) use its reasonable best efforts to obtain the consent or approval
      of each governmental agency or authority, whether federal, state or local,
      which may be required to effect the Exchange Registration, the Exchange
      Offer and the offering and sale of Exchange Securities by broker-dealers
      during the Resale Period;

         (viii) provide a CUSIP number for all Exchange Securities, not later
      than the applicable Effective Time;

         (ix) comply with all applicable rules and regulations of the
      Commission, and make generally available to its securityholders as soon as
      reasonably practicable but no later than eighteen months after the
      effective date of such Exchange Registration Statement, an earning
      statement of the Company and its subsidiaries complying with

                                       7
<PAGE>
         Section 11(a) of the Securities Act (including, at the option of the
         Company, Rule 158 thereunder).

      (d) In connection with the Company's obligations with respect to the Shelf
   Registration, if applicable, the Company shall, as soon as reasonably
   practicable (or as otherwise specified):

         (i) prepare and file with the Commission, as soon as reasonably
      practicable but in any case within the time periods specified in Section
      2(b), a Shelf Registration Statement on any form which may be utilized by
      the Company and which shall register all of the Registrable Securities for
      resale by the holders thereof in accordance with such method or methods of
      disposition as may be specified by such of the holders as, from time to
      time, may be Electing Holders and use its reasonable best efforts to cause
      such Shelf Registration Statement to become effective as soon as
      reasonably practicable but in any case within the time periods specified
      in Section 2(b);

         (ii) not less than 30 calendar days prior to the Effective Time of the
      Shelf Registration Statement, mail the Notice and Questionnaire to the
      holders of Registrable Securities; no holder shall be entitled to be named
      as a selling securityholder in the Shelf Registration Statement as of the
      Effective Time, and no holder shall be entitled to use the prospectus
      forming a part thereof for resales of Registrable Securities at any time,
      unless such holder has returned a completed and signed Notice and
      Questionnaire to the Company by the deadline for response set forth
      therein; provided, however, holders of Registrable Securities shall have
      at least 28 calendar days from the date on which the Notice and
      Questionnaire is first mailed to such holders to return a completed and
      signed Notice and Questionnaire to the Company;

         (iii) after the Effective Time of the Shelf Registration Statement,
      upon the request of any holder of Registrable Securities that is not then
      an Electing Holder, promptly send a Notice and Questionnaire to such
      holder; provided that the Company shall not be required to take any action
      to name such holder as a selling securityholder in the Shelf Registration
      Statement or to enable such holder to use the prospectus forming a part
      thereof for resales of Registrable Securities until such holder has
      returned a completed and signed Notice and Questionnaire to the Company;

         (iv) as soon as reasonably practicable prepare and file with the
      Commission such amendments and supplements to such Shelf Registration
      Statement and the prospectus included therein as may be necessary to
      effect and maintain the effectiveness of such Shelf Registration Statement
      for the period specified in Section 2(b) hereof and as may be required by
      the applicable rules and regulations of the Commission and the
      instructions applicable to the form of such Shelf Registration Statement,
      and furnish to the Electing Holders copies of any such supplement or
      amendment simultaneously with or prior to its being used or filed with the
      Commission;

         (v) comply with the provisions of the Securities Act with respect to
      the disposition of all of the Registrable Securities covered by such Shelf
      Registration Statement in accordance with the intended methods of
      disposition by the Electing Holders provided for in such Shelf
      Registration Statement;

                                       8
<PAGE>
         (vi) provide (A) the Electing Holders, (B) the underwriters (which
      term, for purposes of this Exchange and Registration Rights Agreement,
      shall include a person deemed to be an underwriter within the meaning of
      Section 2(a)(11) of the Securities Act), if any, thereof, (C) any sales or
      placement agent therefor, (D) counsel for any such underwriter or agent
      and (E) not more than one counsel for all the Electing Holders the
      opportunity to participate in the preparation of such Shelf Registration
      Statement, each prospectus included therein or filed with the Commission
      and each amendment or supplement thereto;

         (vii) for a reasonable period prior to the filing of such Shelf
      Registration Statement, and throughout the period specified in Section
      2(b), make available at reasonable times at the Company's principal place
      of business or such other reasonable place for inspection by the persons
      referred to in Section 3(d)(vi) who shall certify to the Company in
      writing that they have a current intention to sell the Registrable
      Securities pursuant to the Shelf Registration such financial and other
      information and books and records of the Company, and cause the officers,
      employees, counsel and independent certified public accountants of the
      Company to respond to such inquiries, as shall be reasonably necessary, in
      the judgment of the respective counsel referred to in such Section, to
      conduct a reasonable investigation within the meaning of Section 11 of the
      Securities Act; provided, however, that each such party shall be required
      to maintain in confidence and not to disclose to any other person any
      information or records reasonably designated by the Company as being
      confidential, until such time as (A) such information becomes a matter of
      public record (whether by virtue of its inclusion in such registration
      statement or otherwise), or (B) such person shall be required so to
      disclose such information pursuant to a subpoena or order of any court or
      other governmental agency or body having jurisdiction over the matter
      (subject to the requirements of such order, and only after such person
      shall have given the Company prompt prior written notice of such
      requirement), or (C) such information is required to be set forth in such
      Shelf Registration Statement or the prospectus included therein or in an
      amendment to such Shelf Registration Statement or an amendment or
      supplement to such prospectus in order that such Shelf Registration
      Statement, prospectus, amendment or supplement, as the case may be,
      complies with applicable requirements of the federal securities laws and
      the rules and regulations of the Commission and does not contain an untrue
      statement of a material fact or omit to state therein a material fact
      required to be stated therein or necessary to make the statements therein
      not misleading in light of the circumstances then existing;

         (viii) promptly notify each of the Electing Holders, any sales or
      placement agent therefor and any underwriter thereof (which notification
      may be made through any managing underwriter that is a representative of
      such underwriter for such purpose) and confirm such advice in writing, (A)
      when such Shelf Registration Statement or the prospectus included therein
      or any prospectus amendment, prospectus supplement in which any such
      Electing Holder is named or post-effective amendment has been filed, and,
      with respect to such Shelf Registration Statement or any post-effective
      amendment, when the same has become effective, (B) of any comments by the
      Commission and by the blue sky or securities commissioner or regulator of
      any state with respect thereto or any request by the Commission for
      amendments or supplements to such Shelf Registration Statement or
      prospectus or for additional information, (C) of the issuance by the
      Commission of any stop order suspending the effectiveness of such Shelf
      Registration Statement or the initiation or threatening of any proceedings
      for that purpose, (D) if at any time the represen-

                                       9
<PAGE>
      tations and warranties of the Company contemplated by Section 3(d)(xvii)
      or Section 5 cease to be true and correct in all material respects, (E) of
      the receipt by the Company of any notification with respect to the
      suspension of the qualification of the Registrable Securities for sale in
      any jurisdiction or the initiation or threatening of any proceeding for
      such purpose, or (F) if at any time when a prospectus is required to be
      delivered under the Securities Act, that such Shelf Registration
      Statement, prospectus, prospectus amendment or supplement or
      post-effective amendment does not conform in all material respects to the
      applicable requirements of the Securities Act and the Trust Indenture Act
      and the rules and regulations of the Commission thereunder or contains 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
      not misleading in light of the circumstances then existing;

         (ix) use its reasonable best efforts to obtain the withdrawal of any
      order suspending the effectiveness of such registration statement or any
      post-effective amendment thereto at the earliest practicable date;

         (x) if requested by any managing underwriter or underwriters, any
      placement or sales agent or any Electing Holder, promptly incorporate in a
      prospectus supplement or post-effective amendment such information as is
      required by the applicable rules and regulations of the Commission and as
      such managing underwriter or underwriters, such agent or such Electing
      Holder reasonably specifies should be included therein relating to the
      terms of the sale of such Registrable Securities, including information
      with respect to the principal amount of Registrable Securities being sold
      by such Electing Holder or agent or to any underwriters, the name and
      description of such Electing Holder, agent or underwriter, the offering
      price of such Registrable Securities and any discount, commission or other
      compensation payable in respect thereof, the purchase price being paid
      therefor by such underwriters and with respect to any other terms of the
      offering of the Registrable Securities to be sold by such Electing Holder
      or agent or to such underwriters; and make all required filings of such
      prospectus supplement or post-effective amendment promptly after
      notification of the matters to be incorporated in such prospectus
      supplement or post-effective amendment;

         (xi) furnish to each Electing Holder, each placement or sales agent, if
      any, therefor, each underwriter, if any, thereof and the respective
      counsel referred to in Section 3(d)(vi): (A) upon request therefor, an
      executed copy (or, in the case of an Electing Holder, a conformed copy) of
      such Shelf Registration Statement, each such amendment and supplement
      thereto (in each case including all exhibits thereto (in the case of an
      Electing Holder of Registrable Securities, upon request) and documents
      incorporated by reference therein) and (B) such number of copies of such
      Shelf Registration Statement (excluding exhibits thereto and documents
      incorporated by reference therein unless specifically so requested by such
      Electing Holder, agent or underwriter, as the case may be) and of the
      prospectus included in such Shelf Registration Statement (including each
      preliminary prospectus and any summary prospectus), in conformity in all
      material respects with the applicable requirements of the Securities Act
      and the Trust Indenture Act and the rules and regulations of the
      Commission thereunder, and such other documents, as such Electing Holder,
      agent, if any, and underwriter, if any, may reasonably request in order to
      facilitate the offering and disposition of the Registrable Securities
      owned by such Electing Holder, offered or sold by such agent or
      underwritten by such underwriter and to permit such Electing Holder, agent
      and underwriter to satisfy the prospectus delivery requirements of the
      Securities Act; and the Company hereby consents to the use of

                                       10
<PAGE>
      such prospectus (including such preliminary and summary prospectus) and
      any amendment or supplement thereto by each such Electing Holder and by
      any such agent and underwriter, in each case in the form most recently
      provided to such person by the Company, in connection with the offering
      and sale of the Registrable Securities covered by the prospectus
      (including such preliminary and summary prospectus) or any supplement or
      amendment thereto;

         (xii) use reasonable best efforts to (A) register or qualify the
      Registrable Securities to be included in such Shelf Registration Statement
      under such securities laws or blue sky laws of such jurisdictions as any
      Electing Holder and each placement or sales agent, if any, therefor and
      underwriter, if any, thereof shall reasonably request, (B) keep such
      registrations or qualifications in effect and comply with such laws so as
      to permit the continuance of offers, sales and dealings therein in such
      jurisdictions during the period the Shelf Registration is required to
      remain effective under Section 2(b) above and for so long as may be
      necessary to enable any such Electing Holder, agent or underwriter to
      complete its distribution of Securities pursuant to such Shelf
      Registration Statement and (C) take any and all other actions as may be
      reasonably necessary or advisable to enable each such Electing Holder,
      agent, if any, and underwriter, if any, to consummate the disposition in
      such jurisdictions of such Registrable Securities; provided, however, that
      the Company shall not be required for any such purpose to (1) qualify as a
      foreign corporation in any jurisdiction wherein it would not otherwise be
      required to qualify but for the requirements of this Section 3(d)(xii),
      (2) consent to general service of process or subject itself to material
      taxation in any such jurisdiction or (3) make any changes to its
      certificate of incorporation or by-laws or any agreement between it and
      its stockholders;

         (xiii) use its reasonable best efforts to obtain the consent or
      approval of each governmental agency or authority, whether federal, state
      or local, which may be required to effect the Shelf Registration or the
      offering or sale in connection therewith or to enable the selling holder
      or holders to offer, or to consummate the disposition of, their
      Registrable Securities;

         (xiv) unless any Registrable Securities shall be in book-entry only
      form, subject to the terms of the Indenture, cooperate with the Electing
      Holders and the managing underwriters, if any, to facilitate the timely
      preparation and delivery of certificates representing Registrable
      Securities to be sold, which certificates, if so required by any
      securities exchange upon which any Registrable Securities are listed,
      shall be penned, lithographed or engraved, or produced by any combination
      of such methods, on steel engraved borders, and which certificates shall
      not bear any restrictive legends; and, in the case of an underwritten
      offering, enable such Registrable Securities to be in such denominations
      and registered in such names as the managing underwriters may request at
      least two business days prior to any sale of the Registrable Securities;

         (xv) provide a CUSIP number for all Registrable Securities, not later
      than the applicable Effective Time;

         (xvi) enter into one or more underwriting agreements, engagement
      letters, agency agreements, "best efforts" underwriting agreements or
      similar agreements, as appropriate, including customary provisions
      relating to indemnification and contribution, and take such other actions
      in connection therewith as any Electing Holders aggregating at least 30%
      in aggregate principal amount of the Registrable Securities

                                       11
<PAGE>
      at the time outstanding shall reasonably request in order to expedite or
      facilitate the disposition of such Registrable Securities;

         (xvii) whether or not an agreement of the type referred to in Section
      3(d)(xvi) hereof is entered into and whether or not any portion of the
      offering contemplated by the Shelf Registration is an underwritten
      offering or is made through a placement or sales agent or any other
      entity, (A) make such representations and warranties to the Electing
      Holders and the placement or sales agent, if any, therefor and the
      underwriters, if any, thereof in form, substance and scope as are
      customarily made in connection with an offering of debt securities
      pursuant to any appropriate agreement or to a registration statement filed
      on the form applicable to the Shelf Registration; (B) obtain opinions of
      outside and in-house counsel to the Company in customary form and covering
      such matters, of the type customarily covered by such opinions, as the
      managing underwriters, if any, or as any Electing Holders of at least 30%
      in aggregate principal amount of the Registrable Securities at the time
      outstanding may reasonably request, addressed to such Electing Holder or
      Electing Holders and the placement or sales agent, if any, therefor and
      the underwriters, if any, thereof and dated the effective date of such
      Shelf Registration Statement (and if such Shelf Registration Statement
      contemplates an underwritten offering of a part or all of the Registrable
      Securities, dated the date of the closing under the underwriting agreement
      relating thereto) (it being agreed that the matters to be covered by such
      opinions shall include the due incorporation and good standing of the
      Company and its material subsidiaries; the qualification of the Company
      and its material subsidiaries to transact business as foreign
      corporations; the due authorization, execution and delivery of the
      relevant agreement of the type referred to in Section 3(d)(xvi) hereof;
      the due authorization, execution, authentication and issuance, and the
      validity and enforceability, of the Securities; the absence of material
      legal or governmental proceedings involving the Company; the absence of a
      breach by the Company or any of its material subsidiaries of, or a default
      under, material agreements binding upon the Company or any material
      subsidiary of the Company; the absence of governmental approvals required
      to be obtained in connection with the Shelf Registration, the offering and
      sale of the Registrable Securities, this Exchange and Registration Rights
      Agreement or any agreement of the type referred to in Section 3(d)(xvi)
      hereof, except such approvals as may be required under state securities or
      blue sky laws; the material compliance as to form of such Shelf
      Registration Statement and any documents incorporated by reference therein
      and of the Indenture with the requirements of the Securities Act and the
      Trust Indenture Act and the rules and regulations of the Commission
      thereunder, respectively; and, as of the date of the opinion and of the
      Shelf Registration Statement or most recent post-effective amendment
      thereto, as the case may be, negative assurance regarding the absence from
      such Shelf Registration Statement and the prospectus included therein, as
      then amended or supplemented, and from the documents incorporated by
      reference therein (in each case other than the financial statements and
      other financial information contained therein) of an untrue statement of a
      material fact or the omission to state therein a material fact necessary
      to make the statements therein not misleading (in the case of such
      documents, in the light of the circumstances existing at the time that
      such documents were filed with the Commission under the Exchange Act));
      (C) obtain a "cold comfort" letter or letters from the independent
      certified public accountants of the Company addressed to the selling
      Electing Holders, the placement or sales agent, if any, therefor or the
      underwriters, if any, thereof, dated (i) the effective date of such Shelf
      Registration Statement and (ii) the effective date of any prospectus
      supplement to the prospectus

                                       12
<PAGE>
      included in such Shelf Registration Statement or post-effective amendment
      to such Shelf Registration Statement which includes unaudited or audited
      financial statements as of a date or for a period subsequent to that of
      the latest such statements included in such prospectus (and, if such Shelf
      Registration Statement contemplates an underwritten offering pursuant to
      any prospectus supplement to the prospectus included in such Shelf
      Registration Statement or post-effective amendment to such Shelf
      Registration Statement which includes unaudited or audited financial
      statements as of a date or for a period subsequent to that of the latest
      such statements included in such prospectus, dated the date of the closing
      under the underwriting agreement relating thereto), such letter or letters
      to be in customary form and covering such matters of the type customarily
      covered by letters of such type; (D) deliver such documents and
      certificates, including officers' certificates, as may be reasonably
      requested by any Electing Holders of at least 30% in aggregate principal
      amount of the Registrable Securities at the time outstanding or the
      placement or sales agent, if any, therefor and the managing underwriters,
      if any, thereof to evidence the accuracy of the representations and
      warranties made pursuant to clause (A) above or those contained in Section
      5(a) hereof and the compliance with or satisfaction of any agreements or
      conditions contained in the underwriting agreement or other agreement
      entered into by the Company; and (E) undertake such obligations relating
      to expense reimbursement, indemnification and contribution as are provided
      in Section 6 hereof;

         (xviii) notify in writing each holder of Registrable Securities of any
      proposal by the Company to amend or waive any provision of this Exchange
      and Registration Rights Agreement pursuant to Section 9(h) hereof and of
      any amendment or waiver effected pursuant thereto, each of which notices
      shall contain the text of the amendment or waiver proposed or effected, as
      the case may be;

         (xix) in the event that any broker-dealer registered under the Exchange
      Act shall underwrite any Registrable Securities or participate as a member
      of an underwriting syndicate or selling group or "assist in the
      distribution" (within the meaning of the Conduct Rules (the "Conduct
      Rules") of the National Association of Securities Dealers, Inc. ("NASD")
      or any successor thereto, as amended from time to time) thereof, whether
      as a holder of such Registrable Securities or as an underwriter, a
      placement or sales agent or a broker or dealer in respect thereof, or
      otherwise, assist such broker-dealer in complying with the requirements of
      such Conduct Rules, including by (A) if such Conduct Rules shall so
      require, engaging a "qualified independent underwriter" (as defined in
      such Conduct Rules) to participate in the preparation of the Shelf
      Registration Statement relating to such Registrable Securities, to
      exercise usual standards of due diligence in respect thereto and, if any
      portion of the offering contemplated by such Shelf Registration Statement
      is an underwritten offering or is made through a placement or sales agent,
      to recommend the yield of such Registrable Securities, (B) indemnifying
      any such qualified independent underwriter to the extent of the
      indemnification of underwriters provided in Section 6 hereof (or to such
      other customary extent as may be requested by such underwriter), and (C)
      providing such information to such broker-dealer as may be required in
      order for such broker-dealer to comply with the requirements of the
      Conduct Rules; and

         (xx) comply with all applicable rules and regulations of the
      Commission, and make generally available to its securityholders as soon as
      reasonably practicable but in any event not later than eighteen months
      after the effective date of such Shelf Registration Statement, an earning
      statement of the Company and its subsidiaries

                                       13
<PAGE>
      complying with Section 11(a) of the Securities Act (including, at the
      option of the Company, Rule 158 thereunder).

      (e) In the event that the Company would be required, pursuant to Section
   3(d)(viii)(F) above, to notify the Electing Holders, the placement or sales
   agent, if any, therefor and the managing underwriters, if any, thereof, the
   Company shall without delay prepare and furnish to each of the Electing
   Holders, to each placement or sales agent, if any, and to each such
   underwriter, if any, a reasonable number of copies of a prospectus
   supplemented or amended so that, as thereafter delivered to purchasers of
   Registrable Securities, such prospectus shall conform in all material
   respects to the applicable requirements of the Securities Act and the Trust
   Indenture Act and the rules and regulations of the Commission thereunder and
   shall not contain 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 not misleading in light of the circumstances then
   existing. Each Electing Holder agrees that upon receipt of any notice from
   the Company pursuant to Section 3(d)(viii)(F) hereof, such Electing Holder
   shall forthwith discontinue the disposition of Registrable Securities
   pursuant to the Shelf Registration Statement applicable to such Registrable
   Securities until such Electing Holder shall have received copies of such
   amended or supplemented prospectus, and if so directed by the Company, such
   Electing Holder shall deliver to the Company (at the Company's expense) all
   copies, other than permanent file copies, then in such Electing Holder's
   possession of the prospectus covering such Registrable Securities at the time
   of receipt of such notice.

      (f) In the event of a Shelf Registration, in addition to the information
   required to be provided by each Electing Holder in its Notice and
   Questionnaire, the Company may require such Electing Holder to furnish to the
   Company such additional information regarding such Electing Holder and such
   Electing Holder's intended method of distribution of Registrable Securities
   as may be required in order to comply with the Securities Act. Each such
   Electing Holder agrees to notify the Company as promptly as practicable of
   any inaccuracy or change in information previously furnished by such Electing
   Holder to the Company or of the occurrence of any event in either case as a
   result of which any prospectus relating to such Shelf Registration contains
   or would contain an untrue statement of a material fact regarding such
   Electing Holder or such Electing Holder's intended method of disposition of
   such Registrable Securities or omits to state any material fact regarding
   such Electing Holder or such Electing Holder's intended method of disposition
   of such Registrable Securities required to be stated therein or necessary to
   make the statements therein not misleading in light of the circumstances then
   existing, and promptly to furnish to the Company any additional information
   required to correct and update any previously furnished information or
   required so that such prospectus shall not contain, with respect to such
   Electing Holder or the disposition of such Registrable Securities, 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 not misleading in
   light of the circumstances then existing.

      (g) Until the expiration of two years after the Closing Date, the Company
   will not, and will not permit any of its "affiliates" (as defined in Rule
   144) to, resell any of the Securities that have been reacquired by any of
   them except pursuant to an effective registration statement under the
   Securities Act.

      (h) Upon the occurrence or existence of any pending corporate development
   that, in the reasonable discretion of the Company, makes it appropriate to
   suspend the availability of the Shelf Registration Statement and the related
   prospectus, the Company shall give written notice to the Electing Holders
   that the availability of the Shelf Registration Statement is suspended (a
   "Deferral Notice") and, upon receipt of any Deferral Notice, each Electing

                                       14
<PAGE>
   Holder agrees to immediately suspend the use of any prospectus and not to
   sell any Registrable Securities pursuant to the Registration Statement until
   it is advised in writing by the Company that the prospectus may be used, and
   has received copies of any additional or supplemental filings that are
   incorporated or deemed incorporated by reference in such prospectus. The
   Company will use reasonable best efforts to ensure that the use of the
   prospectus may be resumed as soon as, in the sole discretion of the Company,
   such suspension is no longer appropriate.

      4. Registration Expenses.

      The Company agrees to bear and to pay or cause to be paid promptly all
expenses incident to the Company's performance of or compliance with this
Exchange and Registration Rights Agreement, including (a) all Commission and any
NASD registration, filing and review fees and expenses including reasonable fees
and disbursements of counsel for the placement or sales agent or underwriters in
connection with such registration, filing and review, (b) all fees and expenses
in connection with the qualification of the Securities for offering and sale
under the State securities and blue sky laws referred to in Section 3(d)(xii)
hereof and determination of their eligibility for investment under the laws of
such jurisdictions as any managing underwriters or the Electing Holders may
designate, including any reasonable fees and disbursements of counsel for the
Electing Holders or underwriters in connection with such qualification and
determination, (c) all expenses relating to the preparation, printing,
production, distribution and reproduction of each registration statement
required to be filed hereunder, each prospectus included therein or prepared for
distribution pursuant hereto, each amendment or supplement to the foregoing, the
expenses of preparing the Securities for delivery and the expenses of printing
or producing any underwriting agreements, agreements among underwriters, selling
agreements and blue sky or legal investment memoranda and all other documents in
connection with the offering, sale or delivery of Securities to be disposed of
(including certificates representing the Securities), (d) messenger, telephone
and delivery expenses relating to the offering, sale or delivery of Securities
and the preparation of documents referred in clause (c) above, (e) fees and
expenses of the Trustee under the Indenture, any agent of the Trustee and
reasonable fees and expenses of counsel for the Trustee and of any collateral
agent or custodian, (f) internal expenses (including all salaries and expenses
of the Company's officers and employees performing legal or accounting duties),
(g) reasonable fees, disbursements and expenses of counsel and independent
certified public accountants of the Company (including the expenses of any
opinions or "cold comfort" letters required by or incident to such performance
and compliance), (h) fees, disbursements and expenses of any "qualified
independent underwriter" engaged pursuant to Section 3(d)(xix) hereof, and
reasonable fees and expenses of counsel thereto permitted by the terms of this
Exchange and Registration Rights Agreement, (i) reasonable fees, disbursements
and expenses of one counsel for the Electing Holders retained in connection with
a Shelf Registration, as selected by the Electing Holders of at least a majority
in aggregate principal amount of the Registrable Securities held by Electing
Holders (which counsel shall be reasonably satisfactory to the Company), (j) any
fees charged by securities rating services for rating the Securities, and (k)
fees, expenses and disbursements of any other persons, including special
experts, retained by the Company in connection with such registration
(collectively, the "Registration Expenses"). To the extent that the foregoing
Registration Expenses are incurred, assumed or paid by any holder of Registrable
Securities or any placement or sales agent therefor or underwriter thereof, the
Company shall reimburse such person for the full amount of the Registration
Expenses so incurred, assumed or paid promptly after receipt of a request
therefor. Notwithstanding the foregoing, the holders of the Registrable
Securities being registered shall pay all agency fees and commissions and
underwriting discounts and commissions attributable to the sale of such
Registrable Securities and the fees and disbursements of any counsel or other
advisors or

                                       15
<PAGE>
experts retained by such holders (severally or jointly), other than the counsel
and experts specifically referred to above.

      5. Representations and Warranties.

      The Company represents and warrants to, and agrees with, the Purchaser and
each of the holders from time to time of Registrable Securities that:

      (a) Each registration statement covering Registrable Securities and each
   prospectus (including any preliminary or summary prospectus) contained
   therein or furnished pursuant to Section 3(d) or Section 3(c) hereof and any
   further amendments or supplements to any such registration statement or
   prospectus, when it becomes effective or is filed with the Commission, as the
   case may be, and, in the case of an underwritten offering of Registrable
   Securities, at the time of the closing under the underwriting agreement
   relating thereto, will conform in all material respects to the requirements
   of the Securities Act and the Trust Indenture Act and the rules and
   regulations of the Commission thereunder and will not contain 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 not misleading;
   and at all times subsequent to the Effective Time when a prospectus would be
   required to be delivered under the Securities Act, other than from (i) such
   time as a notice has been given to holders of Registrable Securities pursuant
   to Section 3(d)(viii)(F) or Section 3(c)(iii)(F) hereof until (ii) such time
   as the Company furnishes an amended or supplemented prospectus pursuant to
   Section 3(e) or Section 3(c)(iv) hereof, each such registration statement,
   and each prospectus (including any summary prospectus) contained therein or
   furnished pursuant to Section 3(d) or Section 3(c) hereof, as then amended or
   supplemented, will conform in all material respects to the requirements of
   the Securities Act and the Trust Indenture Act and the rules and regulations
   of the Commission thereunder and will not contain 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 not misleading in the light of
   the circumstances then existing; provided, however, that this representation
   and warranty shall not apply to any statements or omissions made in reliance
   upon and in conformity with information furnished in writing to the Company
   by a holder of Registrable Securities expressly for use therein.

      (b) Any documents incorporated by reference in any prospectus referred to
   in Section 5(a) hereof, when they become or became effective or are or were
   filed with the Commission, as the case may be, will conform or conformed in
   all material respects to the requirements of the Securities Act or the
   Exchange Act, as applicable, and none of such documents will contain or
   contained an untrue statement of a material fact or will omit or omitted to
   state a material fact required to be stated therein or necessary to make the
   statements therein not misleading; provided, however, that this
   representation and warranty shall not apply to any statements or omissions
   made in reliance upon and in conformity with information furnished in writing
   to the Company by a holder of Registrable Securities expressly for use
   therein.

      (c) The compliance by the Company with all of the provisions of this
   Exchange and Registration Rights Agreement and the consummation of the
   transactions herein contemplated will not conflict with or result in a breach
   of any of the terms or provisions of, or constitute a default under, any
   indenture, mortgage, deed of trust, loan agreement or other agreement or
   instrument to which the Company or any subsidiary of the Company is a party
   or by which the Company or any subsidiary of the Company is bound or to which
   any of the property or assets of the Company or any subsidiary of the Company
   is subject (except for such events that, individually or in the aggregate,
   would not have a material adverse effect on the Company and its subsidiaries,
   taken as a whole), nor will such action

                                       16
<PAGE>
   result in any violation of the provisions of the certificate of
   incorporation, as amended, or the by-laws of the Company or any statute or
   any order, rule or regulation of any court or governmental agency or body
   having jurisdiction over the Company or any subsidiary of the Company or any
   of their properties; and no consent, approval, authorization, order,
   registration or qualification of or with any such court or governmental
   agency or body is required for the consummation by the Company of the
   transactions contemplated by this Exchange and Registration Rights Agreement,
   except the registration under the Securities Act of the Securities,
   qualification of the Indenture under the Trust Indenture Act and such
   consents, approvals, authorizations, registrations or qualifications as may
   be required under State securities or blue sky laws in connection with the
   offering and distribution of the Securities.

      (d) This Exchange and Registration Rights Agreement has been duly
   authorized, executed and delivered by the Company.

      6. Indemnification.

      (a) Indemnification by the Company. The Company will indemnify and hold
   harmless each of the holders of Registrable Securities included in an
   Exchange Registration Statement, each of the Electing Holders of Registrable
   Securities included in a Shelf Registration Statement and each person who
   participates as a placement or sales agent or as an underwriter in any
   offering or sale of such Registrable Securities against any losses, claims,
   damages or liabilities, joint or several, to which such holder, agent or
   underwriter may become subject under the Securities Act or otherwise, insofar
   as such losses, claims, damages or liabilities (or actions in respect
   thereof) arise out of or are based upon an untrue statement or alleged untrue
   statement of a material fact contained in any Exchange Registration Statement
   or Shelf Registration Statement, as the case may be, under which such
   Registrable Securities were registered under the Securities Act, or any
   preliminary, final or summary prospectus contained therein or furnished by
   the Company to any such holder, Electing Holder, agent or underwriter, or any
   amendment or supplement thereto, or arise out of or are based upon the
   omission or alleged omission to state therein a material fact required to be
   stated therein or necessary to make the statements therein not misleading,
   and will reimburse such holder, such Electing Holder, such agent and such
   underwriter for any legal or other expenses reasonably incurred by them in
   connection with investigating or defending any such action or claim as such
   expenses are incurred; provided, however, that the Company shall not be
   liable to any such person in any such case to the extent that any such loss,
   claim, damage or liability arises out of or is based upon an untrue statement
   or alleged untrue statement or omission or alleged omission made in such
   registration statement, or preliminary, final or summary prospectus, or
   amendment or supplement thereto, in reliance upon and in conformity with
   written information furnished to the Company by such person expressly for use
   therein; provided further, however, that the Company shall not be liable to
   any person in any such case for or in respect of any loss, liability, claim,
   damage or expense arising from an offer or sale of Registrable Securities
   occurring during a period referred to in Section 3(d)(viii)(C) or (F) or
   Section 3(h), if all Electing Holders received the written notice pursuant to
   such provision.

      (b) Indemnification by the Holders and any Agents and Underwriters. As a
   condition to including any Registrable Securities in any registration
   statement filed pursuant to Section 2(b) hereof and to entering into any
   underwriting agreement with respect thereto, the Company shall have received
   an undertaking reasonably satisfactory to it from the Electing Holder of such
   Registrable Securities and from each underwriter named in any such
   underwriting agreement, severally and not jointly, to (i) indemnify and hold
   harmless the Company, and all other holders of Registrable Securities,
   against any losses, claims,

                                       17
<PAGE>
   damages or liabilities to which the Company or such other holders of
   Registrable Securities may become subject, under the Securities Act or
   otherwise, insofar as such losses, claims, damages or liabilities (or actions
   in respect thereof) arise out of or are based upon an untrue statement or
   alleged untrue statement of a material fact contained in such registration
   statement, or any preliminary, final or summary prospectus contained therein
   or furnished by the Company to any such Electing Holder, agent or
   underwriter, or any amendment or supplement thereto, or arise out of or are
   based upon the omission or alleged omission to state therein a material fact
   required to be stated therein or necessary to make the statements therein not
   misleading, in each case to the extent, but only to the extent, that such
   untrue statement or alleged untrue statement or omission or alleged omission
   was made in reliance upon and in conformity with written information
   furnished to the Company by such Electing Holder or underwriter expressly for
   use therein, and (ii) reimburse the Company for any legal or other expenses
   reasonably incurred by the Company in connection with investigating or
   defending any such action or claim as such expenses are incurred; provided,
   however, that no such Electing Holder shall be required to undertake
   liability to any person under this Section 6(b) for any amounts in excess of
   the dollar amount of the proceeds to be received by such Electing Holder from
   the sale of such Electing Holder's Registrable Securities pursuant to such
   registration.

      (c) Notices of Claims, Etc. Promptly after receipt by an indemnified party
   under subsection (a) or (b) above of written notice of the commencement of
   any action, such indemnified party shall, if a claim in respect thereof is to
   be made against an indemnifying party pursuant to the indemnification
   provisions of or contemplated by this Section 6, notify such indemnifying
   party in writing of the commencement of such action; but the omission so to
   notify the indemnifying party shall not relieve it from any liability which
   it may have to any indemnified party otherwise than under the indemnification
   provisions of or contemplated by Section 6(a) or 6(b) hereof. In case any
   such action shall be brought against any indemnified party and it shall
   notify an indemnifying party of the commencement thereof, such indemnifying
   party shall be entitled to participate therein and, to the extent that it
   shall wish, jointly with any other indemnifying party similarly notified, to
   assume the defense thereof, with counsel reasonably satisfactory to such
   indemnified party (who shall not, except with the consent of the indemnified
   party, be counsel to the indemnifying party), and, after notice from the
   indemnifying party to such indemnified party of its election so to assume the
   defense thereof, such indemnifying party shall not be liable to such
   indemnified party for any legal expenses of other counsel or any other
   expenses, in each case subsequently incurred by such indemnified party, in
   connection with the defense thereof other than reasonable costs of
   investigation. No indemnifying party shall, without the written consent of
   the indemnified party, effect the settlement or compromise of, or consent to
   the entry of any judgment with respect to, any pending or threatened action
   or claim in respect of which indemnification or contribution may be sought
   hereunder (whether or not the indemnified party is an actual or potential
   party to such action or claim) unless such settlement, compromise or judgment
   (i) includes an unconditional release of the indemnified party from all
   liability arising out of such action or claim and (ii) does not include a
   statement as to or an admission of fault, culpability or a failure to act by
   or on behalf of any indemnified party.

      (d) Contribution. If for any reason the indemnification provisions
   contemplated by Section 6(a) or Section 6(b) are unavailable to or
   insufficient to hold harmless an indemnified party in respect of any losses,
   claims, damages or liabilities (or actions in respect thereof) referred to
   therein, then each indemnifying party shall contribute to the amount paid or
   payable by such indemnified party as a result of such losses, claims, damages
   or liabilities (or actions in respect thereof) in such proportion as is
   appropriate to

                                       18
<PAGE>
   reflect the relative fault of the indemnifying party and the indemnified
   party in connection with the statements or omissions which resulted in such
   losses, claims, damages or liabilities (or actions in respect thereof), as
   well as any other relevant equitable considerations. The relative fault of
   such indemnifying party and indemnified party shall be determined by
   reference to, among other things, whether the untrue or alleged untrue
   statement of a material fact or omission or alleged omission to state a
   material fact relates to information supplied by such indemnifying party or
   by such indemnified party, and the parties' relative intent, knowledge,
   access to information and opportunity to correct or prevent such statement or
   omission. The parties hereto agree that it would not be just and equitable if
   contributions pursuant to this Section 6(d) were determined by pro rata
   allocation (even if the holders or any agents or underwriters or all of them
   were treated as one entity for such purpose) or by any other method of
   allocation which does not take account of the equitable considerations
   referred to in this Section 6(d). The amount paid or payable by an
   indemnified party as a result of the losses, claims, damages, or liabilities
   (or actions in respect thereof) referred to above shall be deemed to include
   any legal or other fees or expenses reasonably incurred by such indemnified
   party in connection with investigating or defending any such action or claim.
   Notwithstanding the provisions of this Section 6(d), no holder shall be
   required to contribute any amount in excess of the amount by which the dollar
   amount of the proceeds received by such holder from the sale of any
   Registrable Securities (after deducting any fees, discounts and commissions
   applicable thereto) exceeds the amount of any damages which such holder has
   otherwise been required to pay by reason of such untrue or alleged untrue
   statement or omission or alleged omission, and no underwriter shall be
   required to contribute any amount in excess of the amount by which the total
   price at which the Registrable Securities underwritten by it and distributed
   to the public were offered to the public exceeds the amount of any damages
   which such underwriter has otherwise been required to pay by reason of such
   untrue or alleged untrue statement or omission or alleged omission. 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
   was not guilty of such fraudulent misrepresentation. The holders' and any
   underwriters' obligations in this Section 6(d) to contribute shall be several
   in proportion to the principal amount of Registrable Securities registered or
   underwritten, as the case may be, by them and not joint.

      (e) The obligations of the Company under this Section 6 shall be in
   addition to any liability which the Company may otherwise have and shall
   extend, upon the same terms and conditions, to each officer, director and
   partner of each holder, agent and underwriter and each person, if any, who
   controls any holder, agent or underwriter within the meaning of the
   Securities Act; and the obligations of the holders and any agents or
   underwriters contemplated by this Section 6 shall be in addition to any
   liability which the respective holder, agent or underwriter may otherwise
   have and shall extend, upon the same terms and conditions, to each officer
   and director of the Company (including any person who, with his consent, is
   named in any registration statement as about to become a director of the
   Company) and to each person, if any, who controls the Company within the
   meaning of the Securities Act.

      7. Underwritten Offerings.

      (a) Selection of Underwriters. If any of the Registrable Securities
   covered by the Shelf Registration are to be sold pursuant to an underwritten
   offering, the managing underwriter or underwriters thereof shall be
   designated by Electing Holders holding at least a majority in aggregate
   principal amount of the Registrable Securities to be included in such
   offering, provided that such designated managing underwriter or underwriters
   is or are reasonably acceptable to the Company.

                                       19
<PAGE>
      (b) Participation by Holders. Each holder of Registrable Securities hereby
   agrees with each other such holder that no such holder may participate in any
   underwritten offering hereunder unless such holder (i) agrees to sell such
   holder's Registrable Securities on the basis provided in any underwriting
   arrangements approved by the persons entitled hereunder to approve such
   arrangements and (ii) completes and executes all questionnaires, powers of
   attorney, indemnities, underwriting agreements and other documents reasonably
   required under the terms of such underwriting arrangements.

      8. Rule 144.

      The Company covenants to the holders of Registrable Securities that to the
extent it shall be required to do so under the Exchange Act, the Company shall
timely file the reports required to be filed by it under the Exchange Act or the
Securities Act (including the reports under Section 13 and 15(d) of the Exchange
Act referred to in subparagraph (c)(1) of Rule 144 adopted by the Commission
under the Securities Act) and the rules and regulations adopted by the
Commission thereunder, and shall take such further action as any holder of
Registrable Securities may reasonably request, all to the extent required from
time to time to enable such holder to sell Registrable Securities without
registration under the Securities Act within the limitations of the exemption
provided by Rule 144 under the Securities Act, as such Rule may be amended from
time to time, or any similar or successor rule or regulation hereafter adopted
by the Commission. Upon the request of any holder of Registrable Securities in
connection with that holder's sale pursuant to Rule 144, the Company shall
deliver to such holder a written statement as to whether it has complied with
such requirements.

      9. Miscellaneous.

      (a) No Inconsistent Agreements. The Company represents, warrants,
   covenants and agrees that it has not granted, and shall not grant,
   registration rights with respect to Registrable Securities or any other
   securities which would be inconsistent with the terms contained in this
   Exchange and Registration Rights Agreement.

      (b) Specific Performance. The parties hereto acknowledge that there would
   be no adequate remedy at law if the Company fails to perform any of its
   obligations hereunder and that the Purchaser and the holders from time to
   time of the Registrable Securities may be irreparably harmed by any such
   failure, and accordingly agree that the Purchaser and such holders, in
   addition to any other remedy to which they may be entitled at law or in
   equity, shall be entitled to compel specific performance of the obligations
   of the Company under this Exchange and Registration Rights Agreement in
   accordance with the terms and conditions of this Exchange and Registration
   Rights Agreement, in any court of the United States or any State thereof
   having jurisdiction.

      (c) Notices. All notices, requests, claims, demands, waivers and other
   communications hereunder shall be in writing and shall be deemed to have been
   duly given when delivered by hand, if delivered personally or by courier, or
   three days after being deposited in the mail (registered or certified mail,
   postage prepaid, return receipt requested) as follows: If to the Company, to
   the attention of the Company's General Counsel at Diamond Offshore Drilling,
   Inc., 15415 Katy Freeway, Suite 100, Houston, TX 77094, and if to a holder,
   to the address of such holder set forth in the security register or other
   records of the Company, or to such other address as the Company or any such
   holder may have furnished to the other in writing in accordance herewith,
   except that notices of change of address shall be effective only upon
   receipt.

                                       20
<PAGE>
      (d) Parties in Interest. All the terms and provisions of this Exchange and
   Registration Rights Agreement shall be binding upon, shall inure to the
   benefit of and shall be enforceable by the parties hereto and the holders
   from time to time of the Registrable Securities and the respective successors
   and assigns of the parties hereto and such holders. In the event that any
   transferee of any holder of Registrable Securities shall acquire Registrable
   Securities, in any manner, whether by gift, bequest, purchase, operation of
   law or otherwise, such transferee shall, without any further writing or
   action of any kind, be deemed a beneficiary hereof for all purposes and such
   Registrable Securities shall be held subject to all of the terms of this
   Exchange and Registration Rights Agreement, and by taking and holding such
   Registrable Securities such transferee shall be entitled to receive the
   benefits of, and be conclusively deemed to have agreed to be bound by all of
   the applicable terms and provisions of this Exchange and Registration Rights
   Agreement. If the Company shall so request, any such successor, assign or
   transferee shall agree in writing to acquire and hold the Registrable
   Securities subject to all of the applicable terms hereof.

      (e) Survival. The respective indemnities, agreements, representations,
   warranties and each other provision set forth in this Exchange and
   Registration Rights Agreement or made pursuant hereto shall remain in full
   force and effect regardless of any investigation (or statement as to the
   results thereof) made by or on behalf of any holder of Registrable
   Securities, any director, officer or partner of such holder, any agent or
   underwriter or any director, officer or partner thereof, or any controlling
   person of any of the foregoing, and shall survive delivery of and payment for
   the Registrable Securities pursuant to the Purchase Agreement and the
   transfer and registration of Registrable Securities by such holder and the
   consummation of an Exchange Offer.

      (f) GOVERNING LAW. THIS EXCHANGE AND REGISTRATION RIGHTS AGREEMENT SHALL
   BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
   YORK.

      (g) Headings. The descriptive headings of the several Sections and
   paragraphs of this Exchange and Registration Rights Agreement are inserted
   for convenience only, do not constitute a part of this Exchange and
   Registration Rights Agreement and shall not affect in any way the meaning or
   interpretation of this Exchange and Registration Rights Agreement.

      (h) Entire Agreement; Amendments. This Exchange and Registration Rights
   Agreement and the other writings referred to herein (including the Indenture
   and the form of Securities) or delivered pursuant hereto which form a part
   hereof contain the entire understanding of the parties with respect to its
   subject matter. This Exchange and Registration Rights Agreement supersedes
   all prior agreements and understandings between the parties with respect to
   its subject matter. This Exchange and Registration Rights Agreement may be
   amended and the observance of any term of this Exchange and Registration
   Rights Agreement may be waived (either generally or in a particular instance
   and either retroactively or prospectively) only by a written instrument duly
   executed by the Company and the holders of at least a majority in aggregate
   principal amount of the Registrable Securities at the time outstanding. Each
   holder of any Registrable Securities at the time or thereafter outstanding
   shall be bound by any amendment or waiver effected pursuant to this Section
   9(h), whether or not any notice, writing or marking indicating such amendment
   or waiver appears on such Registrable Securities or is delivered to such
   holder.

      (i) Inspection. For so long as this Exchange and Registration Rights
   Agreement shall be in effect, this Exchange and Registration Rights Agreement
   and a complete list of the names and addresses of all the holders of
   Registrable Securities shall be made available for inspection, upon
   reasonable notice and during business hours, and copying on any business day
   by any holder of Registrable Securities for proper purposes only (which shall

                                       21
<PAGE>
   include any purpose related to the rights of the holders of Registrable
   Securities under the Securities, the Indenture and this Agreement) at the
   offices of the Company at the address thereof set forth in Section 9(c) above
   and at the office of the Trustee under the Indenture.

      (j) Counterparts. This agreement may be executed by the parties in
   counterparts, each of which shall be deemed to be an original, but all such
   respective counterparts shall together constitute one and the same
   instrument.

                                       22
<PAGE>
      If the foregoing is in accordance with your understanding, please sign and
return to us four counterparts hereof, and upon the acceptance hereof by you
this letter and such acceptance hereof shall constitute a binding agreement
between you and the Company.

                                          Very truly yours,

                                          Diamond Offshore Drilling, Inc.

                                          By: /s/ William C. Long
                                              -------------------------------
                                              Name:  William C. Long
                                              Title: Vice President,
                                                     General Counsel and
                                                     Secretary

Accepted as of the date hereof:

Goldman, Sachs & Co.

/s/ Goldman, Sachs & Co.
--------------------------------
   (Goldman, Sachs & Co.)
<PAGE>
                                                                       EXHIBIT A

                         DIAMOND OFFSHORE DRILLING, INC.

                         INSTRUCTION TO DTC PARTICIPANTS

                                (Date of Mailing)

                     URGENT - IMMEDIATE ATTENTION REQUESTED

                         DEADLINE FOR RESPONSE: [DATE] *

The Depository Trust Company ("DTC") has identified you as a DTC Participant
through which beneficial interests in the Diamond Offshore Drilling, Inc. (the
"Company") 4.875% Senior Notes due 2015 (the "Securities") are held.

The Company is in the process of registering the Securities under the Securities
Act of 1933 for resale by the beneficial owners thereof. In order to have their
Securities included in the registration statement, beneficial owners must
complete and return the enclosed Notice of Registration Statement and Selling
Securityholder Questionnaire.

It is important that beneficial owners of the Securities receive a copy of the
enclosed materials as soon as possible as their rights to have the Securities
included in the registration statement depend upon their returning the Notice
and Questionnaire by [DEADLINE FOR RESPONSE]. Please forward a copy of the
enclosed documents to each beneficial owner that holds interests in the
Securities through you. If you require more copies of the enclosed materials or
have any questions pertaining to this matter, please contact Diamond Offshore
Drilling, Inc., 15415 Katy Freeway, Suite 100, Houston, TX 77094; Telephone:
281-492-5300.

--------------
* Not less than 28 calendar days from date of mailing.

                                      A-1
<PAGE>
                         DIAMOND OFFSHORE DRILLING, INC.

                        Notice of Registration Statement
                                       and
                      Selling Securityholder Questionnaire

                                     (Date)

Reference is hereby made to the Exchange and Registration Rights Agreement (the
"Exchange and Registration Rights Agreement") dated June 14, 2005 between
Diamond Offshore Drilling, Inc. (the "Company") and Goldman, Sachs & Co.
Pursuant to the Exchange and Registration Rights Agreement, the Company has
filed with the United States Securities and Exchange Commission (the
"Commission") a registration statement on Form S-[__] (the "Shelf Registration
Statement") for the registration and resale under Rule 415 of the Securities Act
of 1933, as amended (the "Securities Act"), of the Company's 4.875% Senior Notes
Due 2015 (the "Securities"). A copy of the Exchange and Registration Rights
Agreement is attached hereto. All capitalized terms not otherwise defined herein
shall have the meanings ascribed thereto in the Exchange and Registration Rights
Agreement.

Each beneficial owner of Registrable Securities (as defined below) is entitled
to have the Registrable Securities beneficially owned by it included in the
Shelf Registration Statement. In order to have Registrable Securities included
in the Shelf Registration Statement, this Notice of Registration Statement and
Selling Securityholder Questionnaire ("Notice and Questionnaire") must be
completed, executed and delivered to the Company's counsel at the address set
forth herein for receipt ON OR BEFORE [DEADLINE FOR RESPONSE]. Beneficial owners
of Registrable Securities who do not complete, execute and return this Notice
and Questionnaire by such date (i) will not be named as selling securityholders
in the Shelf Registration Statement and (ii) may not use the Prospectus forming
a part thereof for resales of Registrable Securities.

Certain legal consequences arise from being named as a selling securityholder in
the Shelf Registration Statement and related Prospectus. Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Shelf Registration Statement and
related Prospectus.

The term "Registrable Securities" is defined in the Exchange and Registration
Rights Agreement.

                                      A-2
<PAGE>
                                    ELECTION

The undersigned holder (the "Selling Securityholder") of Registrable Securities
hereby elects to include in the Shelf Registration Statement the Registrable
Securities beneficially owned by it and listed below in Item (3). The
undersigned, by signing and returning this Notice and Questionnaire, agrees to
be bound with respect to such Registrable Securities by the terms and conditions
of this Notice and Questionnaire and the Exchange and Registration Rights
Agreement, including, without limitation, Section 6 of the Exchange and
Registration Rights Agreement, as if the undersigned Selling Securityholder were
an original party thereto.

Upon any sale of Registrable Securities pursuant to the Shelf Registration
Statement, the Selling Securityholder will be required to deliver to the Company
and Trustee the Notice of Transfer set forth in Appendix A to the Prospectus and
as Exhibit B to the Exchange and Registration Rights Agreement.

The Selling Securityholder hereby provides the following information to the
Company and represents and warrants that such information is accurate and
complete:

                                      A-3
<PAGE>
                                  QUESTIONNAIRE

(1)(a)  Full Legal Name of Selling Securityholder:

   (b)  Full Legal Name of Registered Holder (if not the same as in (a) above)
        of Registrable Securities Listed in Item (3) below:

   (c)  Full Legal Name of DTC Participant (if applicable and if not the same as
        (b) above) Through Which Registrable Securities Listed in Item (3) below
        are Held:

(2)     Address for Notices to Selling Securityholder:

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

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

        ----------------------------------------
        Telephone:
                        ------------------------
        Fax:
                        ------------------------
        Contact Person:
                        ------------------------

(3)     Beneficial Ownership of Securities:

        Except as set forth below in this Item (3), the undersigned does not
        beneficially own any Securities.

   (a)  Principal amount of Registrable Securities beneficially owned:
                                                                      ----------
        CUSIP No(s). of such Registrable Securities:
                                                     ---------------------------

   (b)  Principal amount of Securities other than Registrable Securities
        beneficially owned:
                            ----------------------------------------------------
        CUSIP No(s). of such other Securities:
                                                --------------------------------

   (c)  Principal amount of Registrable Securities which the undersigned
        wishes to be included in the Shelf Registration Statement:
                                                                  --------------
        CUSIP No(s). of such Registrable Securities to be included in the
        Shelf Registration Statement:
                                       -----------------------------------------

(4)     Beneficial Ownership of Other Securities of the Company:

        Except as set forth below in this Item (4), the undersigned Selling
        Securityholder is not the beneficial or registered owner of any other
        securities of the Company, other than the Securities listed above in
        Item (3).

        State any exceptions here:

                                      A-4
<PAGE>
(5)     Relationships with the Company:

        Except as set forth below, neither the Selling Securityholder nor any of
        its affiliates, officers, directors or principal equity holders (5% or
        more) has held any position or office or has had any other material
        relationship with the Company (or its predecessors or affiliates) during
        the past three years.

        State any exceptions here:

(6)     Plan of Distribution:

        Except as set forth below, the undersigned Selling Securityholder
        intends to distribute the Registrable Securities listed above in Item
        (3) only as follows (if at all): Such Registrable Securities may be sold
        from time to time directly by the undersigned Selling Securityholder or,
        alternatively, through underwriters, broker-dealers or agents. Such
        Registrable Securities may be sold in one or more transactions at fixed
        prices, at prevailing market prices at the time of sale, at varying
        prices determined at the time of sale, or at negotiated prices. Such
        sales may be effected in transactions (which may involve crosses or
        block transactions) (i) on any national securities exchange or quotation
        service on which the Registered Securities may be listed or quoted at
        the time of sale, (ii) in the over-the-counter market, (iii) in
        transactions otherwise than on such exchanges or services or in the
        over-the-counter market, or (iv) through the writing of options. In
        connection with sales of the Registrable Securities or otherwise, the
        Selling Securityholder may enter into hedging transactions with
        broker-dealers, which may in turn engage in short sales of the
        Registrable Securities in the course of hedging the positions they
        assume. The Selling Securityholder may also sell Registrable Securities
        short and deliver Registrable Securities to close out such short
        positions, or loan or pledge Registrable Securities to broker-dealers
        that in turn may sell such securities.

        State any exceptions here:

By signing below, the Selling Securityholder acknowledges that it understands
its obligation to comply, and agrees that it will comply, with the provisions of
the Exchange Act and the rules and regulations thereunder, particularly
Regulation M.

In the event that the Selling Securityholder transfers all or any portion of the
Registrable Securities listed in Item (3) above after the date on which such
information is provided to the Company, the Selling Securityholder agrees to
notify the transferee(s) at the time of the transfer of its rights and
obligations under this Notice and Questionnaire and the Exchange and
Registration Rights Agreement.

By signing below, the Selling Securityholder consents to the disclosure of the
information contained herein in its answers to Items (1) through (6) above and
the inclusion of such information in the Shelf Registration Statement and
related Prospectus. The Selling Securityholder understands that such information
will be relied upon by the Company in connection with the preparation of the
Shelf Registration Statement and related Prospectus.

In accordance with the Selling Securityholder's obligation under Section 3(d) of
the Exchange and Registration Rights Agreement to provide such information as
may be required by law for inclusion in the Shelf Registration Statement, the
Selling Securityholder agrees to promptly notify the Company of any inaccuracies
or changes in the information provided herein which

                                      A-5
<PAGE>
may occur subsequent to the date hereof at any time while the Shelf Registration
Statement remains in effect. All notices hereunder and pursuant to the Exchange
and Registration Rights Agreement shall be made in writing, by hand-delivery,
first-class mail, or air courier guaranteeing overnight delivery as follows:

         (i) To the Company:
                               Diamond Offshore Drilling, Inc.
                               15415 Katy Freeway, Suite 100
                               Houston, TX 77094
                               Attn:  William C. Long

        (ii) With a copy to:
                               Duane Morris LLP
                               3200 Southwest Freeway, Suite 3150
                               Houston, TX 77027
                               Attn:  Shelton M. Vaughan

Once this Notice and Questionnaire is executed by the Selling Securityholder and
received by the Company's counsel, the terms of this Notice and Questionnaire,
and the representations and warranties contained herein, shall be binding on,
shall inure to the benefit of and shall be enforceable by the respective
successors, heirs, personal representatives, and assigns of the Company and the
Selling Securityholder (with respect to the Registrable Securities beneficially
owned by such Selling Securityholder and listed in Item (3) above). This
Agreement shall be governed in all respects by the laws of the State of New
York.

                                      A-6
<PAGE>
IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this
Notice and Questionnaire to be executed and delivered either in person or by its
duly authorized agent.

Dated:
      -----------------------

       -------------------------------------------------------------------------
       Selling Securityholder
      (Print/type full legal name of beneficial owner of Registrable Securities)

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

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON
OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY'S COUNSEL AT:

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

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

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

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

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

                                      A-7
<PAGE>
                                                                       EXHIBIT B

              NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT

[NAME OF TRUSTEE]
Diamond Offshore Drilling, Inc.
c/o [NAME OF TRUSTEE]
[ADDRESS OF TRUSTEE]

Attention:  Trust Officer

       Re:  Diamond Offshore Drilling, Inc. (the "Company")
            4.875% Senior Notes Due 2015

Dear Sirs:

Please be advised that _____________________ has transferred $_____________
aggregate principal amount of the above-referenced Notes pursuant to an
effective Registration Statement on Form S-[____] (File No. 333-__________)
filed by the Company.

We hereby certify that the prospectus delivery requirements, if any, of the
Securities Act of 1933, as amended, have been satisfied and that the above-named
beneficial owner of the Notes is named as a "Selling Holder" in the Prospectus
dated [DATE] or in supplements thereto, and that the aggregate principal amount
of the Notes transferred are the Notes listed in such Prospectus opposite such
owner's name.

Dated:

                                    Very truly yours,

                                        ------------------------------------
                                        (Name)

                                    By:
                                        ------------------------------------
                                        (Authorized Signature)

                                      B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]