Document:

EXHIBIT 10.10

                                                  [DEEPWATER MILLENNIUM]

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                     SENIOR SECURED LOAN AGREEMENT

                              Dated as of

                            March 26, 1999

                                between

                        R&B FALCON CORPORATION,

                              as Borrower

                                  and

                           RBF FINANCE CO.,

                               as Lender

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                           TABLE OF CONTENTS

                                                                Page

SECTION 1.DEFINITIONS                                             1
   1.1.Certain Defined Terms                                      1
   1.2.Other Defined Terms                                        5
   1.3.Accounting Terms                                           5
   1.4.Other Definitional Provisions                              5
SECTION 2.LOAN COMMITMENT AND LOAN                                6
   2.1.Termination of Loan Commitment                             7
   2.2.Termination of Loan Commitment                             7
   2.3.Interest on the Loans                                      7
   2.4.Redemptions                                                8
   2.5.Excess Proceeds Offers                                    10
   2.6.Use of Proceeds                                           11
   2.7.Commitment Fee                                            12
SECTION 3.CONDITIONS                                             12
   3.1.Conditions to Initial Advances on the Loan                12
   3.2.Conditions to Subsequent Advance on the Loan              14
SECTION 4.REPRESENTATIONS AND WARRANTIES                         14
   4.1.Organization and Good Standing; Capitalization            14
   4.2.Authorization and Power                                   15
   4.3.No Conflicts or Consents                                  15
   4.4.Enforceable Obligations                                   15
   4.5.Properties; Liens                                         16
   4.6.No Default                                                16
   4.7.Use of Proceeds; Margin Stock, etc                        16
   4.8.Survival of Representations and Warranties                16
SECTION 5.COVENANTS                                              16
   5.1.Indenture Covenants                                       16
   5.2.Reports of Defaults, Etc                                  16
   5.3.Payments in U.S. Dollars                                  17
   5.4.Performance and Enforcement Under the Loan Documents      17
   5.5.Liens                                                     17
   5.6.Transfer of Mortgage Rig to a Restricted Subsidiary       17
   5.7.Filing of Mortgage                                        17
SECTION 6.EVENTS OF DEFAULT                                      17
   6.1.Failure To Make Payments When Due                         17
   6.2.Default Under The Indenture                               18
   6.3.Other Loan Agreement                                      18
   6.4.Breach of Certain Covenants                               18
   6.5.Breach of Warranty                                        18
   6.6.Other Defaults Under Agreement or Loan Documents          18
   6.7.Involuntary Bankruptcy; Appointment of Custodian, etc     18
   6.8.Voluntary Bankruptcy; Appointment of a Custodian; etc     18
SECTION 7.MISCELLANEOUS                                          19
   7.1.Pledges and Assignments of Loan and Note                  19
   7.2.Expenses                                                  20
   7.3.Indemnity                                                 20
   7.4.Additional Amounts                                        21
   7.5.Taxes and Other Taxes                                     22
   7.6.Amendments and Waivers                                    23
   7.7.Independence of Covenants                                 23
   7.8.Notices                                                   23
   7.9.Survival of Warranties and Certain Agreements             23
   7.10.Failure or Indulgence Not Waiver; Remedies Cumulative    23
   7.11.Severability                                             24
   7.12.Headings                                                 24
   7.13.Applicable Law                                           24
   7.14.Successors and Assigns; Subsequent Holders of Notes      24
   7.15.Counterparts; Effectiveness                              24
   7.16.Consent to Jurisdiction; Venue; Waiver of Jury Trial     24
   7.17.Waiver of Stay, Extension or Usury Laws                  25
   7.18.Usury Savings Clause                                     25

EXHIBITS

I    FORM OF NOTE
II   FORM OF NOTICE OF BORROWING
III  FORM OF OPINION OF GARDERE & WYNNE - SPECIAL COUNSEL FOR THE BORROWER
IV   FORM OF MORTGAGE
V    FORM OF SECURITY AGREEMENT

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  This Senior Secured Loan Agreement is dated as of March 26, 1999,
and entered into by and among R&B Falcon, Inc., a Delaware corporation
(the "Company") and RBF Finance Co., a Delaware corporation (the
"Lender").

                               RECITALS

  WHEREAS, the Lender has entered into an Indenture of even date
herewith (as the same may be amended, or supplemented or otherwise
modified from time to time, the "Indenture") with United States Trust
Company of New York as Trustee (the "Trustee"), pursuant to which the
Lender will issue in two series up to $400,000,000 aggregate principal
amount of its 11% Senior Secured Notes due 2006 (the "7-year Secured
Notes") and up to $400,000,000 aggregate principal amount of its
11 3/8% Senior Secured Notes due 2009 (the "10-year Secured Notes;" the
7-year Secured Notes and the 10-year Secured Notes being hereinafter
collectively called the "Secured Notes"); and

  WHEREAS, the Indenture provides that the Lender may utilize the
proceeds of the Secured Notes to make loans to the Company, each for
the purpose of either (i) financing all or a portion of the cost of
acquiring, constructing, altering, improving or repairing a drilling
rig or drillship (a "Rig") or improvements used or to be used in
connection with such a Rig, or (ii) financing all or any part of the
purchase price of the Rig or improvements used or to be used in
connection with such Rig, which indebtedness is incurred prior to or
within one year after the date of the completion of construction,
alteration, improvement or repair or the commencement of commercial
operations thereof; and

  WHEREAS, the Company desires that the Lender extend senior secured
credit facilities to the Company for such purposes herein; and

  WHEREAS, the Indenture provides that the Lender will enter into a
Senior Secured Note Security and Pledge Agreement of even date
herewith (the "Issuer Security Agreement") between the Lender, the
Trustee and United States Trust Company of New York as Collateral
Agent (in such capacity, the "Collateral Agent"), pursuant to which
the Lender will pledge and grant a security in the loans made with the
proceeds of the Secured Notes which are or will be secured by Rigs;

  NOW, THEREFORE, in consideration of the premises and the
agreements, provisions and covenants herein contained, the parties
hereby agree as follows:

  SECTION 1 DEFINITIONS

  1.1 Certain Defined Terms.  The following terms used in this Agreement
shall have the following meanings:

  "Agreement" means this Senior Secured Loan Agreement dated as of
March 26, 1999, as it may be amended, supplemented or otherwise
modified from time to time in accordance with the terms hereof.

  "Board of Directors" means, with respect to any Person, the Board
of Directors of such Person or any duly authorized committee of that
Board.

  "Board Resolution" means a duly adopted resolution of the Board of
Directors of the Company in full force and effect at the time of
determination and certified as such by the Secretary or Assistant
Secretary of the Company.

  "Business Day" means any day excluding Saturday, Sunday and any day
which is a legal holiday under the laws of New York, New York or is a
day on which banking institutions therein located are authorized or
required by law or other governmental action to close.

  "Cash Equivalents" means (i) U.S. Governmental Obligations with a
maturity of four years or less; (ii) commercial paper issued by any
corporation if such commercial paper has credit ratings of at least "A-
1" from S&P or at least "P-1" by Moody's; (iii) certificates of
deposit, bankers' acceptances, time deposits, Eurocurrency Deposits
and similar types of Investments routinely offered by commercial banks
with final maturities of one year or less issued by commercial banks
having combined capital and surplus in excess of $100,000,000; and
(iv) shares in money market mutual or similar funds having assets in
excess of $100,000,000.

  "Closing Date" means the date on or before March 26, 1999 on which
the initial advance of the Loan is made and the conditions set forth
in Section 3.1 are satisfied or waived in accordance with Section 7.7.

  "Collateral" means all collateral described in and pledged under
the Security Agreement and the Company Escrow Agreement, the Mortgaged
Rig and any other property subject to the Lien created under a
Mortgage or a Loan Document.

  "Commission" means the Securities and Exchange Commission.

  "Company" has the meaning ascribed to such term in the introduction
to this Agreement.

  "Collateral Agent" has the meaning assigned to such term in the
recitals to this Agreement.

   "Contractual Obligation," as applied to any Person, means any
provision of any Security issued by that Person or of any indenture,
mortgage, deed of trust, contract, undertaking, agreement or other
instrument to which that Person is a party or by which it or any of
its properties is bound or to which it or any of its properties is
subject.

  "Dollars" or the sign "$" means the lawful money of the United
States of America.

  "Event of Default" means each of the events set forth in Section 6.

  "indemnified liabilities" has the meaning ascribed to such term in
Section 7.3.

  "Indemnitees" has the meaning ascribed to such term in Section 7.3.

  "Indenture" has the meaning ascribed to such term in the recitals
of this Agreement.

  "Laws" means all applicable statutes, laws, ordinances,
regulations, rules, orders, judgments, writs, injunctions or decrees
of any state, commonwealth, nation, territory, possession, province,
county, parish, town, township, village, municipality or Tribunal, and
"Law" means each of the foregoing.

  "Lender" has the meaning ascribed to that term in the introduction
of this Agreement and shall include any assignee of the Loan or the
Note or Loan Commitment to the extent of such assignment.

  "Lien" means any lien, mortgage, pledge, assignment, security
interest, charge or encumbrance of any kind (including any conditional
sale or other title retention agreement, any lease in the nature
thereof, and any agreement to give any security interest) and any
option, trust or other preferential arrangement having the practical
effect of any of the foregoing.

  "Loan" means, collectively, the loans made by the Lender pursuant
to Section 2.1.

  "Loan Documents" means this Agreement, the Note, the Mortgage, the
Company Escrow Agreement and the Security Agreement.

  "Margin Stock" has the meaning assigned to that term in
Regulation U of the Board of Governors of the Federal Reserve System
as in effect from time to time.

  "Material Adverse Effect" means (i) a material adverse effect upon
the business, property, assets, nature of assets, liabilities
condition (financial or otherwise), results of operation or prospects
of the Company and its Restricted Subsidiaries, taken as a whole, or
(ii) the impairment of the ability of the Company or any of its
Restricted Subsidiaries to perform, or the impairment of the ability
of Lender to enforce, any material right or remedy under the
Obligations.

  "Maturity" means the date on which the principal of the Loan,
whether the 7-year Tranche or 10-year Tranche or both, becomes due and
payable as provided in this Agreement whether at Stated Maturity, upon
redemption, by declaration of acceleration or otherwise.

  "Mortgage" means a mortgage substantially in the form of Exhibit IV
covering the Mortgaged Rig.

  "Mortgaged Rig" means the Deepwater Millennium.

  "Notes" has the meaning ascribed to such term in Section 2.1C.

  "Notice of Borrowing" means a notice substantially in the form of
Exhibit II annexed hereto with respect to a proposed borrowing.

  "Obligations" means all obligations of every nature of the Company
from time to time owed to the Lender under the Loan Documents, whether
for principal, reimbursements, interest (including post-petition
interest), fees, expenses, indemnities or otherwise, and whether
primary, secondary, direct, indirect, contingent, fixed or otherwise
(including obligations of performance).

  "Officer" means the Chairman of the Board, the Chief Executive
Officer, the Chief Operating Officer, the President, any Vice
President, the Chief Financial Officer, the Controller, the Chief
Accounting Officer, any Vice President, the Treasurer or the Secretary
of the Company.

  "Officers' Certificate" means, as applied to any corporation, a
certificate executed on behalf of such corporation by two officers;
provided, however, that every Officers' Certificate with respect to
the compliance with a condition precedent to the making of the Loans
hereunder shall include (i) a statement that the officer or officers
making or giving such Officers' Certificate have read such condition
and any definitions or other provisions contained in this Agreement
relating thereto, (ii) a statement that, in the opinion of the
signers, they have made or have caused to be made such examination or
investigation as is necessary to enable them to express an informed
opinion as to whether or not such condition has been complied with,
and (iii) a statement as to whether, in the opinion of the signers,
such condition has been complied with.

  "Other Loan" means a loan made pursuant to an Other Loan Agreement
by the Lender with the proceeds of the Secured Notes which is secured
by a Mortgaged Rig.

  "Other Loan Agreement" means a loan agreement among the Lender, the
Company and the Trustee pursuant to which the Lender will utilize the
proceeds of the Secured Notes to make an Other Loan for the purposes
specified in the second recital of this Agreement

  "Other Mortgaged Rig" means a Rig which has been mortgaged to
secure an Other Loan or which is the subject of a construction
contract which has been pledged to secure an Other Loan.

  "Other Taxes" has the meaning ascribed to such term in Section 7.6.

  "Payment Office" shall mean the office of United States Trust
Company of New York located at 114 West 47th Street, 25th Floor, New
York, New York 10036 or such other office in the State of New York as
the Lender may designate to the Company and the Trustee from time to
time.

  "Potential Event of Default" means a condition or event which,
after notice or lapse of time or both, would constitute an Event of
Default if that condition or event were not cured or removed within
any applicable grace or cure period.

  "Purchase Agreement" means the Purchase Agreement dated March 19,
1999 among the Lender, the Company and the Initial Purchaser relating
to the Secured Notes.

  "Securities" means any stock, shares, partnership interests, voting
trust certificates, certificates of interest or participation in any
profit sharing agreement or arrangement, bonds, debentures, options,
warrants, notes, or other evidences of indebtedness, secured or
unsecured, convertible, subordinated or otherwise, or in general any
instruments commonly known as "securities" or any certificates of
interest, shares or participations in temporary or interim
certificates for the purchase or acquisition of, or any right to
subscribe to, purchase or acquire, any of the foregoing.

  "Security Agreement" shall mean a Security Agreement substantially
in the form of Exhibit V among the Company, the Lender, and the
Collateral Agent, as the same may be amended, modified or supplemented
in accordance with the terms thereof and hereof.

  "7-year Tranche" means advances on the Loan aggregating up to
$104,950,000 and having a final Loan Maturity of March 15, 2006.

  "Taxes" means all taxes, assessments, fees, levies, imposts,
duties, penalties, deductions, liabilities, withholdings or other
charges of any nature whatsoever, including interest penalties, from
time to time or at any time imposed by any Law or any Tribunal.

  "10-year Tranche" means advances on the Loan aggregating up to
$104,950,000 and having a final Maturity of March 15, 2009.

  "Transaction Costs" means the fees, costs and expenses payable by
the Company pursuant hereto and other fees, costs and expenses payable
by the Company in connection with the Transactions.

  "Transactions" shall mean, collectively, (i) the issuances and sale
of the Secured Notes, (ii) the incurrence of the Loan hereunder on the
Closing Date, (iii) the incurrence of the Other Loans under the Other
Loan Agreements, (iv) any other transaction on the Closing Date
contemplated in relation to the foregoing and (v) the payment of fees
and expenses in connection with the foregoing.

  "Tranches" means collectively the 7-year Tranche and the 10-year
Tranche.

  "Tribunal" means any governmental, any arbitration panel, any court
or any governmental department, commission, board, bureau, agency,
authority or instrumentality of the United States or any state,
province, commonwealth, nation, territory, possession, county, parish,
town, township, village or municipality, whether now or hereafter
constituted and/or existing.

  "Trustee" has the meaning ascribed to such term in the introduction
of this Agreement and shall include any successor Trustee appointed
pursuant to terms of the Indenture.

  "U.S. Legal Tender" means such coin or currency of the United
States of America as at the time of payment shall be legal tender for
the payment of public and private debts.

  1.2 Other Defined Terms.  Any capitalized term used in this Agreement
and not defined herein shall have the meaning assigned to such term in
the Indenture.

  1.3 Accounting Terms.  For the purposes of this Agreement, all
accounting terms to otherwise defined herein shall have the meanings
assigned to them in conformity with GAAP.

  1.4 Other Definitional Provisions.  Any of the terms defined in
Section 1.1 may, unless the context otherwise requires, be used in the
singular or the plural depending on the reference.

  SECTION 2 LOAN COMMITMENT AND LOAN

  2.1 The Loan and Notes.

  A. Loan Commitment.  Subject to the terms and conditions of this
Agreement and in reliance upon the representations and warranties of
the Company herein set forth, the Lender hereby agrees to lend to the
Company on the Closing Date and thereafter up to $209,900,000 in the
aggregate (the "Loan") consisting of $104,950,000 of 7-year Tranche
advances and $104,950,000 of 10-year Tranche advances.  The Lender's
commitment to make the Loan to the Company pursuant to this
Section 2.1 is herein called the "Loan Commitment."

  B. Notice of Borrowing.  When the Company desires to borrow under this
Agreement, it shall deliver to the Collateral Agent a Notice of
Borrowing no later than 11:00 a.m. (New York time), at least one
Business Day in advance of the Closing Date or such other date as
shall be agreed to by the Lender and the Trustee.  The Notice of
Borrowing shall specify the amount of each Tranche and the applicable
date of borrowing (which shall be a Business Day).

  C. Disbursement of Funds.  No later than 3:00 p.m. (New York time) on
the Closing Date, the Lender promptly will make available to the
Company by depositing to its account at the Payment Office the
aggregate of the amount of the Loan to be made on such Closing Date.

  D. Notes.  The Company shall execute and deliver to the Lender on the
Closing Date two Notes dated the Closing Date, one substantially in
the form of Exhibit I annexed hereto with appropriate insertions to
evidence the maximum amount of the 7-year Tranche of Loan which may be
made hereunder by the Lender and the other substantially in the form
of Exhibit I annexed hereto with appropriate insertions to evidence
the maximum amount of 10-year Tranche of the Loan which may be made by
the Lender hereunder.

  E. Scheduled Payments of Loan.

     (i)One of the Other Loan Agreements relates to the Mortgaged Rig
  Deepwater IV, which Mortgaged Rig is presently under construction
  pursuant to a construction contract and which has an expected
  completion date during the third calendar quarter of 2000.  Upon
  completion of the Mortgaged Rig Deepwater IV, the Company is required
  to grant a Lien on such Mortgaged Rig pursuant to a Mortgage.  Upon
  the filing of the Mortgage for the Mortgaged Rig Deepwater IV, the
  Company and the Lender agree that the $21,350,000 of the 7-year
  Tranche and $21,350,000 of the 10-year Tranche will be exchanged for
  additional advances under the Other Loan Agreement relating to the
  Mortgaged Rig Deepwater IV in an aggregate principal amount of
  $42,700,000.

    (ii)The Company shall pay on or before 10:00 a.m. on the date of the
  final Maturity of the 7-year Tranche of the Loan all of the principal
  amount of the 7-year Tranche remaining outstanding, together with
  accrued and unpaid interest, fees and a pro rata portion of the amount
  of the Special Interest and Additional Amounts, if any, due on the
  7-year Secured Notes.  The Company shall pay on or before 10:00 a.m.
  on the date of the final Maturity of the 10-year Tranche all of the
  principal amount of the 10-year Tranche then remaining outstanding,
  together with accrued and unpaid interest fees and a pro rata portion
  of the amount of the Special Interest and Additional Amounts, if any,
  due on the 10-year Secured Notes.  Such payments shall be made
  directly to the Trustee for deposit in the Issuer Escrow Account
  established pursuant to the Issuer Escrow Agreement.

  F. Termination of Loan Commitment.  The Loan Commitment hereunder shall
terminate on the earlier (i) the Stated Maturity (whether by
acceleration, redemption, purchase or otherwise) of the Secured Notes
pursuant to the terms of the Indenture or (ii) May 14, 1999, if no
portion of the Loan has been made on or before such date (other than
as a result of failure of the Lender to fulfill its obligations
hereunder).

  G. Satisfaction by Payments on the Guarantee.  Pursuant to the
Indenture, the Company will guarantee the due and punctual payment of
the principal of, premium, if any, and interest on, and all other
amounts payable under, the Secured Notes (including any Additional
Amounts payable upon redemption, in respect thereof) when and as the
same shall become due and payable, whether at Stated Maturity, by
declaration of acceleration or otherwise.  To the extent that the
Company makes a payment on the Guarantee, it will be deemed to have
made a payment on the Issuer Loans then outstanding, such payments to
be allocated pro rata to each of Tranches of the Loan and pro rata to
the Loan and the Other Loans.

  2.2 Interest on the Loans.

  A. Rate of Interest. The 7-year Tranche of the Loan shall bear interest
on the unpaid principal amount thereof from the date made through
Maturity for the 7-year Tranche (whether by prepayment, acceleration
or otherwise) at a rate equal to 11% per annum plus 2 basis points per
annum and the 10-year Tranche of the Loan shall bear interest on the
unpaid principal amount thereof from the date made through Maturity
for the 10-year Tranche (whether by prepayment, acceleration or
otherwise) at a rate equal to 11 3/8% per annum plus 2 basis points per
annum.

  B. Special Interest.  The Lender and the Company have entered into a
Registration Rights Agreement (the "Registration Rights Agreement")
dated March 26, 1999 with Donaldson, Lufkin & Jenrette Securities
Corporation for the benefit of the Holders of the Secured Notes, in
which the Lender and the Company have agreed to:  (A) file a
registration statement within 60 days after the closing date of the
offering of Secured Notes for an offer to exchange Secured Notes of
each series for debt securities of that series with identical terms
(except for transfer restrictions); (B) use their best efforts to
cause the registration statement to become effective within 150 days
after the closing date of the offering of the Secured Notes; and
(C) complete the registered exchange offer within 180 days after the
closing date of the offering of the Secured Notes.  Under certain
circumstances, the Lender and the Company may be required to file a
shelf registration statement for the Secured Notes registering the
resale of the Secured Notes.  If the Lender and the Company do not
comply with their obligations under the Registration Rights Agreement,
the Lender will be required to pay additional interest ("Special
Interest") specified in Section 5 of the Registration Rights
Agreement.  The Company will pay on each date that the Lender pays
Special Interest to the Holders of the Secured Notes as Special
Interest on the Loan an amount equal to the percentage of Special
Interest, if any, which the Lender owes to the Holders of the Secured
Notes that the principal amount of the Loan bears to the total
aggregate principal amount of the Loan and all Other Loans then
outstanding.  Such payment shall be paid directly to the Trustee for
deposit into the Issuer Escrow Account.

       Notwithstanding any provisions of this Section 2.2 or any
other provision herein, in no event will the combined sum of interest
(cash or otherwise) on the Loan exceed the maximum amount permitted by
applicable law.

  C. Interest Payments.  Interest (including Special Interest, if any,
and Additional Amounts, if any) shall be payable semi-annually on
March 15 and September 15 of each year, commencing September 15, 1999
but in no event to exceed the maximum permitted by applicable law.
All payments of interest on the Loan shall be made on or before 10:00
a.m. (New York time) on the date of payment and shall be paid directly
to the Trustee for deposit into the Issuer Escrow Account.

  D. Post-Maturity Interest.  Any principal payments on the Loan not paid
when due and, to the extent permitted by applicable law, any interest
payment on the Loan not paid when due, in each case whether at Stated
Maturity, by notice of prepayment, by acceleration or otherwise, shall
thereafter bear interest payable upon demand at a rate of interest
otherwise payable under this Agreement for the Loan but in no event to
exceed the maximum interest rate permitted by applicable law.

  E. Computation of Interest.  Interest on the Loan shall be computed on
the basis of a 360-day year of twelve 30-day months.

  2.3 Redemptions.

  A. Redemption upon Loss of the Mortgaged Rig.  If an Event of Loss
occurs at any time with respect to the Mortgaged Rig attributable to
the Loan, the Company shall apply funds in an amount (the "Loss
Redemption Amount") equal to the principal amount of the Loan
outstanding on the date (the "Loss Date") on which such Event of Loss
was deemed to have occurred, together with all accrued and unpaid
interest (including Special Interest, if any, and Additional Amounts,
if any) thereon, to the prepayment of the Loan.  If an Event of Loss
occurs at any time with respect to any Other Mortgaged Rig, the
Indenture and the applicable Other Loan Agreement require that the
Company shall apply funds to the principal amount of the applicable
Other Loan secured by the Other Mortgaged Rig outstanding on the Loss
Date for such other Mortgaged Rig, together with all accrued and
unpaid interest (including Special Interest, if any, and Additional
Amounts, if any) thereon, to the payment of such Other Loan.  If a
Default under the Indenture shall have occurred and be continuing at
the time of the receipt of the Event of Loss Proceeds with respect to
such Other Mortgaged Rig, the Indenture requires, and the Company
hereby agrees, that it shall prepay the Loan and the remaining Other
Loans on a pro rata basis in an aggregate amount equal to the excess
of the Net Event of Loss Proceeds over the Loss Redemption Amount, if
any, together with all accrued and unpaid interest (including Special
Interest, if any, and Additional Amounts, if any) thereon for the
Other Loan which is secured by such Other Mortgaged Rig.  All payments
on the Loan shall be allocated on a pro rata basis between the
Tranches and shall be made directly to the Trustee for deposit into
the Issuer Escrow Account.

  B. Redemption upon Sale of the Mortgaged Rig.  If the Mortgaged Rig or
the Capital Stock of a Subsidiary Guarantor then owning the Mortgaged
Rig is sold in compliance with the terms of the Indenture, the Company
shall apply funds in an amount (the "Sale Redemption Amount") equal to
the principal amount of the Loan secured by the Mortgaged Rig on the
date of such sale (the "Sale Date"), together with all accrued and
unpaid interest (including Special Interest, if any, and Additional
Amounts, if any thereon, plus any additional amounts required by the
Lender to redeem the Secured Notes to the extent required by
Section 3.9 of the Indenture, to the prepayment of the Loan.  If any
Other Mortgaged Rig or the Capital Stock of a Subsidiary Guarantor
then owning an Other Mortgaged Rig is sold in compliance with the
terms of the Indenture, the Company shall apply funds equal to the
applicable Other Loan secured by the Other Mortgaged Rig outstanding
on the Sale Date for such Other Mortgaged Rig, together with all
accrued and unsecured interest (including Special Interest, if any,
and Additional Amounts, if any) thereon, to the payment of such Other
Loan.  If a Default under the Indenture shall have occurred and be
continuing at the time of receipt of the cash consideration with
respect to such Other Mortgaged Rig or Capital Stock of the Subsidiary
Guarantor owning such Other Mortgaged Rig, the Indenture requires, and
the Company hereby agrees, that it shall also be required to prepay
the Loan and the remaining Other Loans on a pro rata basis in an
aggregate amount equal to the excess of such Net Available Cash
attributable to such Sold Mortgaged Rig over such Sale Redemption
Amount.  Such payments on the Loan and the Other Loans pursuant hereto
shall be respectively allocated between the Tranches of the Loan and
the Other Loans on a pro rata basis and shall be made directly to the
Trustee for deposit into the Issuer Escrow Account.

  C. Other Redemptions.

      (i)Redemptions to Fund Optional Redemptions of the 10-year Secured
  Notes.  Under the terms of the Indenture, on or after March 15, 2004,
  the 10-year Secured Notes will be redeemable, at the Lender's option,
  in whole or in part, at any time or from time to time, upon not less
  than 30 nor more than 60 days' prior notice to the Holders of the 10-
  year Secured Notes, at the following Redemption Prices (expressed in
  percentages of principal amount), plus accrued and unpaid interest
  (including Special Interest, if any, and Additional Amounts, if any)
  to the Redemption Date, if redeemed during the 12-month period
  commencing on March 15 of the years set forth below.

                                             Redemption
                        Period                Price

          2004                               105.6875%
          2005                               103.7917
          2006                               101.8958
          2007 and thereafter                100.0000

     The Company shall prepay the 10-year Tranche of the Loan and of
  the Other Loans, in whole or in part, to provide funds for such
  redemption.  Any prepayments by the Company on the Loan and the
  Other Loans required to be made to provide funds for the Lender to
  make such a redemption shall be made on this Loan and the Other
  Loans on a pro rata basis.  All payments on the Loan and the Other
  Loans pursuant hereto shall be made directly to the Trustee for
  deposit into the Issuer Escrow Account.

     (ii)Redemptions to Fund Optional Redemptions of the 7-year Secured
  Notes.  Under the terms of the Indenture, the 7-year Secured Notes
  will be redeemable, at the Lender's option at any time in whole or
  from time to time in part upon not less than 30 and not more than
  60 days' prior notice mailed by first class mail to the Holders of the
  7-year Secured Notes, on any date prior to Maturity at a price equal
  to 100% of the principal amount thereof plus accrued and unpaid
  interest (including Special Interest, if any, and Additional Amounts,
  if any) to the Redemption Date plus the Make-Whole Premium applicable
  to the 7-year Secured Notes determined in the manner provided for in
  Section 3.7 of the Indenture.  The Company shall prepay the 7-year
  Tranche of the Loan and of the Other Loans in whole or in part to
  provide funds for such redemption.  Any prepayments by the Company on
  the Loan and the Other Loans required to be made to provide funds for
  the Lender to make such a redemption shall be made on the Loan and the
  Other Loans on a pro rata basis.  All payments on the Loan and the
  Other Loans pursuant hereto shall be made directly to the Trustee for
  deposit into the Issuer Escrow Account.

  D. Excess Proceeds Offers.  The Indenture provides in Section 3.10
thereof that if, as of the first day of any calendar month, the
aggregate amount of Sale Excess Proceeds and Loss Excess Proceeds
exceeds 10% of consolidated total assets of the Company, and if the
aggregate amount of Sale Excess Proceeds and Loss Excess Proceeds in
excess of 10% of consolidated total assets of the Company that has not
theretofore been subject to an Excess Proceeds Offer (as defined
below) (the "Excess Proceeds Offer Amount"), totals at least $10
million, the Lender must, not later than the fifteenth Business Day of
such month, make an offer ( an "Excess Proceeds Offer") to purchase
from the Holders of the Secured Notes, pursuant to and subject to the
conditions contained in the Indenture, and from Holders of the New
Senior Notes, pursuant to provisions of the New Senior Note Indenture,
Secured Notes at a purchase price equal to 100% of their principal
amount, plus any accrued interest (including Additional Amounts and
Special Interest, if any) to the date of purchase and New Senior Notes
at a purchase price equal to 100% of their principal amount, plus any
accrued interest (including Special Interest, if any) to the date of
purchase in an aggregate principal amount equal to the Excess Proceeds
Offer Amount (an "Excess Proceeds Payment").  If the Lender is ever
required pursuant to Section 3.10 of the Indenture to make an Excess
Proceeds Offer to the Holders of the Secured Notes to purchase from
such Holders their Secured Notes, and to the Holders of Senior Notes
to purchase from such Holders their New Senior Notes, the Indenture
provides, and the Company agrees, that the Company will prepay the
Loan and the Other Loans on a pro rata basis to permit the Lender to
purchase any Secured Notes validly tendered pursuant to an Excess
Proceeds Offer.  All payments on the Loan shall be allocated between
the appropriate Tranches of the Loan; and all payments on the Loan and
the Other Loans pursuant hereto shall be made directly to the Trustee
for deposit into the Issuer Escrow Account.

  E. Change of Control.  If the Lender is ever required to make pursuant
to the provisions of Section 4.8 of the Indenture a Change of Control
Offer to the Holders of the Secured Notes at a purchase price in cash
equal to 101% of the principal amount thereof plus accrued and unpaid
interest (including Additional Amounts and Special Interest, if any)
thereon, the Indenture provides, and Company agrees, that the Company
will prepay the Loan and the Other Loans on a pro rata basis at a
redemption price equal to 101% of the principal amount hereof being
repaid, plus accrued and unpaid interest, Special Interest, if any,
and Additional Amounts, if any, thereon, in order to provide funds
sufficient to permit the Lender to purchase any Secured Notes validly
tendered pursuant to the foregoing offer to purchase Secured Notes
upon a Change of Control.  All payments on the Loan shall be allocated
between the appropriate Tranches of the Loans and all payments on the
Loan and the Other Loans pursuant hereto shall be made directly to the
Trustee for deposit into the Issuer Escrow Account.

  F. Notice.  The Company shall notify the Lender and the Trustee of any
prepayment to be made pursuant to this Section 2.3 at least two
Business Days prior to such prepayment date.

  G. Determination of Amounts of the Tranches Subject to Such
Redemptions.  The Lender will submit a written determination to the
Trustee for its approval of the amount (including the pro rata
allocations between the Tranches of the Loan and between the Loan and
the Other Loans) with respect to any such redemption.  The Trustee
shall approve or disapprove such allocations in its sole discretion
and such decision shall be conclusive, absent manifest error.  A
certificate of the Lender setting forth such determination, with the
written approval of the Trustee thereon, shall be delivered to the
Company at least one Business Day prior to the payment date.

  H. Company's Mandatory Prepayment Obligation; Application of
Prepayments.  All prepayments shall include payment of accrued
interest (including Special Interest and Additional Amounts, if
applicable) on the principal amount so prepaid and shall be applied to
payment of interest before application to principal.

  I. Manner and Time of Payment.  Unless otherwise expressly set forth
herein, all payments of principal and interest hereunder and under the
Notes by the Company shall be made without defense, set-off or
counterclaim and in same-day funds and delivered to the Trustee for
deposit into the Issuer Escrow Account, unless otherwise specified,
not later than 10:00 a.m. (New York time) on the date due at the
Payment Office; funds received by the Trustee after that time shall be
deemed to have been paid by the Company on the next succeeding
Business Day.

  J. Payments on Non-Business Days.  Whenever any payment to be made
hereunder or under the Notes shall be stated to be due on a day which
is not a Business Day, the payment shall be made on the next
succeeding Business Day and such extension of time shall be included
in the computation of the payment of interest hereunder or under the
Loan.

  2.4 Use of Proceeds.

  A. Loan.  The proceeds of the Loan may be applied by the Company to
finance certain costs of acquiring, constructing, repairing and
improving the Mortgaged Rig and, to the extent that such costs have
already been paid, for general corporate purposes.

  B. Margin Regulations.  No portion of the proceeds of any borrowing
under this Agreement shall be used by the Company in any manner which
might cause the borrowing or the application of such proceeds to
violate the applicable requirements of Regulation U, Regulation T or
Regulation X of the Board of Governors of the Federal Reserve System
or any other regulation of the Board or to violate the Exchange Act,
in each case as in effect on the date or dates of such borrowing and
such use of proceeds.

  2.5 Commitment Fee.  The Company agrees to pay a commitment fee for the
period from and including the Closing Date to and including the date
of termination specified in Section 2.1.F. on the undrawn portion of
the Loan equal to the average of the daily excess of the Loan
Commitment over the aggregate principal amount of the Loan outstanding
multiplied by 7% per annum, such commitment fee to be calculated on
the basis of a 360-day year consisting of twelve 30-day months and to
be payable semi-annually in arrears on each March 15 and September 15,
commencing September 15, 1999.

  SECTION 3 CONDITIONS

  3.1 Conditions to Initial Advances on the Loan.  The obligation of the
Lender to make the initial advance on the Loan is subject to prior or
concurrent satisfaction of each of the following conditions:

  A. On or before the Closing Date, all corporate and other proceedings
taken or to be taken in connection with the transactions contemplated
hereby and all documents incidental thereto not previously found
acceptable by the Lender and the Trustee shall be reasonably
satisfactory in form and substance to the Lender and the Trustee, and
the Lender and the Trustee shall have received the following items,
each of which shall be in form and substance satisfactory to the
Lender and the Trustee and, unless otherwise noted, dated the Closing
Date:

      (i)a certified copy of the Company's charter, together with a
  certificate of status, compliance, good standing or like certificate
  with respect to the Company issued by the appropriate government
  officials of the jurisdiction of its incorporation and of each
  jurisdiction in which it owns any material assets or carries on any
  material business, each to be dated a recent date prior to the Closing
  Date;

     (ii) a copy of the Company's bylaws, certified as of the Closing Date
  by its Secretary or one of its Assistant Secretaries;

     (iii) resolutions of the Company's Board of Directors approving and
  authorizing the execution, delivery and performance of this Agreement,
  the Notes, the Security Agreements, the Mortgage, each of the other
  Loan Documents, the Indenture and any other documents, instruments and
  certificates required to be executed by the Company in connection
  herewith and therewith and approving and authorizing the execution,
  delivery and payment of the Loan, each certified as of the Closing
  Date by its Secretary or one of its Assistant Secretaries as being in
  full force and effect without modification or amendment;

     (iv) signature and incumbency certificates of the Company's officers
  executing this Agreement, the Other Loan Documents and the Notes;

     (v) executed copies of this Agreement and the Notes substantially in
  the form of Exhibit I annexed hereto executed in accordance with
  Section 2.1C drawn to the order of the Lender and with appropriate
  insertions;

     (vi) an originally executed Notice of Borrowing substantially in the
  form of Exhibit II annexed hereto, signed by the President or a Vice
  President of the Company on behalf of the Company and delivered to the
  Lender; and

     (vii) originally executed copies of one or more favorable written
  opinions of Gardere & Wynne, special counsel for the Company,
  substantially in the form of the Exhibit III hereto and addressed to
  the Lender, the Trustee and the Initial Purchaser, and such other
  opinions of counsel and such certificates or opinions of accountants,
  appraisers or other professionals as the Lender, the Trustee or the
  Initial Purchaser shall have reasonably requested.

  B. The Lender shall have received a fully executed Security
Agreement, in the form of Exhibit V hereto, the Lien of which has been
perfected in all appropriate jurisdictions; provided, however, that
Liens on equipment purchased by the Company for the Mortgaged Rig that
has not yet been Mortgaged do not have to be perfected until required
by the Trustee, but only after the later to occur of one year after
the date of this Agreement or the completion date for the Mortgaged
Rig as scheduled on the date of this Agreement.

  C. On or before the Closing Date, all authorizations, consents and
approvals necessary in connection with the Transactions shall have
been obtained and remain in full force and effect and all applicable
waiting periods, if any, under law applicable to the Transactions
shall have expired without any action being taken by any competent
authority (including without limitation, any Tribunal) which
restrains, prevents or imposes materially adverse conditions upon the
completion of the Transactions or the financing thereof and evidence
of the receipt of such authorizations, consents and approvals
satisfactory to the Lender and the Trustee shall have been delivered
to the Lender and the Trustee.

  D. On or before the Closing Date, the Indenture and the Purchase
Agreement shall have been executed and delivered by all parties
thereto.  No default or event of default shall have occurred under the
Indenture and the Purchase Agreement, all conditions to the execution
delivery and authentication of the Secured Notes thereunder shall have
been satisfied under the Indenture, and all conditions to the purchase
of the Secured Notes by the Initial Purchaser under the Purchase
Agreement have been satisfied or waived by the Initial Purchaser.

  E. Simultaneously with the making of the Loan by the Lender, the
Company shall have delivered to the Lender and the Trustee an
Officers' Certificate from the Company in form and substance
satisfactory to the Lender and the Trustee to the effect that (i) the
representations ad warranties of the Company in Section 4 are true,
correct and complete in all material respects on and as of the Closing
Date to the same extent as though made on and as of that date, and
(ii) on or prior to the Closing Date, the Company has performed and
complied with in all material respects all covenants and conditions to
be performed and observed by the Company on or prior to the Closing
Date and

  F. No event shall have occurred and be continuing or would result from
the consummation of the borrowing contemplated by the Notice of
Borrowing which would constitute and Event of Default, a Potential
Event of Default or a Default.

  G. No order, judgment or decree of any court, arbitrator or
governmental authority shall purport to enjoin or restrain the Lender
from making the Loan.

  H. The making of the Loan in the manner contemplated in this Agreement
shall not violate the applicable provisions of Regulation T, U or X of
the Board of Governors of the Federal Reserve Board or any other
regulation of the Board.

  3.2 Conditions to Subsequent Advance on the Loan.  The obligation of
the Lender to make a subsequent advance on the Loan is subject to the
prior or concurrent satisfaction of each of the following conditions:

  A. The Lender and the Trustee shall have received in form and substance
satisfactory to the Lender and the Trustee and dated the date of such
advance an originally executed Notice of Borrowing substantially in
the form of Exhibit II annexed hereto, signed by the President or a
Vice President of the Company on behalf of the Company and delivered
to the Lender.

  B. No event shall have occurred and be continuing or would result from
the consummation of the borrowing contemplated by the Notice of
Borrowing which would constitute an Event of Default, a Potential
Event of Default or a Default.

  C. No order, judgment or decree of any court, arbitrator or
governmental authority shall purport to enjoin or restrain the Lender
from making the Loan.

  D. The making of the Loan in the manner contemplated in this Agreement
shall not violate the applicable provisions of Regulation T, U or X of
the Board of Governors of the Federal Reserve Board or any other
regulation of the Board.

  E. Simultaneously with the making of the advance on the Loan by the
Lender, the Company shall have delivered to the Lender and the Trustee
an Officers' Certificate from the Company in form and substance
satisfactory to the Lender and the Trustee to the effect that (i) the
representations and warranties of the Company in Section 4 are true,
correct and complete in all material respects on and as of the date of
such advance to the same extent as though made on and as of that date,
and (ii) on or prior to the date of such advance, the Company has
performed and complied with in all material respects all covenants and
conditions to be performed and observed by the Company on or prior to
the date of such advance.

  SECTION 4 REPRESENTATIONS AND WARRANTIES

  In order to induce the Lender to enter into this Agreement and to
make the Loan, the Company represents and warrants to the Lender that,
at the time of execution hereof and after consummation of the making
of the Loan and the Transactions, the following statements are true,
correct and complete:

  4.1 Organization and Good Standing; Capitalization.  The Company is a
corporation duly organized and existing and in good standing under the
laws of its jurisdiction of incorporation.  The Company has the
corporate power and authority to own and operate its properties and to
carry on its business as now conducted and as proposed to be conducted
and is duly qualified as a foreign corporation and in good standing in
all jurisdictions in which it is doing business, except where failure
to be so qualified or in good standing, singly or in the aggregated,
has not had and will not have a Material Adverse Effect.

  4.2 Authorization and Power.  The Company has the corporate power and
requisite authority, and has taken all corporate action necessary, to
consummate the Transactions and to execute, deliver and perform its
obligations under this Agreement, the Mortgage, the Security
Agreement, the other the Loan Documents, Indenture and each other
document and instrument to be delivered in connection with the
Transactions executed or to be executed by it and to issue the Notes.

  4.3 No Conflicts or Consents.

  A. The execution and delivery of the Loan Agreement, the Notes, the
Mortgage, the Security Agreement, the other Loan Documents and each
other document to be executed and delivered in connection with the
Transactions, the consummation of each of the transactions herein or
therein contemplated, the compliance with each of the terms and
previsions hereof or thereof, and the issuance, delivery and
performance of the Notes, this Agreement, the Mortgage, the Security
Agreement and the Indenture, do not and will not (i) violate any
provision of any law or any governmental rule or regulation applicable
to the Company, its Certificate of Incorporation or Bylaws or any
order, judgment or decree of any court or other agency of government
binding on it, (ii) conflict with, result in a breach of or constitute
(with due notice or lapse of time or both) a default under any
Contractual Obligation of the Company which could reasonably be
expected to result in a Material Adverse Effect, (iii) result in or
require the creation or imposition of any Lien upon any of the
properties or assets of the Company (other than any Liens created
under this Agreement and the Other Loan Agreements), (iv) require any
approval of stockholders or any approval or consent of any Person
under any Contractual Obligation of the Company except for such
approvals or consents which will be obtained on or before the Closing
Date and disclosed in writing to Lender, the Trustee and the Initial
Purchaser or such approvals or consents the failure to obtain which
could not reasonably be expected to singly or in the aggregate result
in a Material Adverse Effect.

  B. No consent, approval, authorization or order of any Tribunal or
other Person is required in connection with the execution and delivery
by the Company of this Agreement, the Loan Documents or any other
document or instrument to be delivered in connection with the
Transactions or the consummation of the transactions contemplated
hereby or thereby, other than any such consent, approval,
authorization or order which has been obtained and remains in full
force and effect or which has been waived in writing by the Lender or
the failure of which to obtain would not, singly or in the aggregated,
have a Material Adverse Effect.

  4.4 Enforceable Obligations.  Each of this Agreement, the Notes, the
Mortgage, the Security Agreement, the other Loan Documents, and each
other document or instrument to be delivered in connection therewith
has been duly authorized; each of this Agreement, the Notes, the
Mortgage, the Security Agreement, the Other Loan Documents and each
other document or instrument to be delivered in connection therewith
to be executed and delivered on or prior to the Closing Date has been
duly executed and delivered by the Company and each of this Agreement,
the Notes, the Mortgage, the Security Agreement, the Other Loan
Documents and each other document or instrument to be delivered in
connection therewith to be executed and delivered on or prior to the
Closing Date is, and each of this Agreement, the Notes, the Mortgage,
the Security Agreement and the other Loan Documents to be executed and
delivered after the Closing Date will be, upon such execution and
delivery, the legal, valid and binding obligations of the Company,
enforceable in accordance with their respective terms, except to the
extent that the enforceability thereof may be limited by applicable
bankruptcy, insolvency, reorganization or similar laws affecting the
enforcement of creditors' rights generally or by general principles of
equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law)

  4.5 Properties; Liens.  The Company has good and marketable title to
the contract for the construction of the Mortgaged Rig and the
equipment purchased and paid for by the Company to be installed or
used thereon and the Other Mortgaged Rigs to the extent specified in
such Other Loan Agreement.  Except as described in Schedule 4.5 or as
permitted by this Agreement, the Company owns, and such contract and
equipment are owned, free and clear of Liens.

  4.6 No Default.  No event has occurred and is continuing which
constitutes a Default, a Potential Event of Default or an Event of
Default.

  4.7 Use of Proceeds; Margin Stock, etc.  The proceeds of the Loan will
be used solely for the purposes specified herein.  None of such
proceeds will be used for the purpose of purchasing or carrying any
Margin Stock within the meaning of the applicable provisions of
Regulation T, U or X, or for the purpose of reducing or retiring any
Indebtedness which was originally incurred to purchase or carry a
Margin Stock or for any other purpose which might constitute this
transaction a "purpose credit" within the meaning of the applicable
provisions of Regulation T, U or X.  The Company has not taken nor
will it take any action which might cause any of the Loan Documents to
violate the applicable provisions of Regulation T, U or X, or any
other regulation of the Board of Governors of the Federal Reserve
System.

  4.8 Survival of Representations and Warranties.  All representations
and warranties in the Loan Documents shall survive delivery of the
Notes and the making of the Loan and shall continue until one year
after repayment of the Notes and the Obligations, and any
investigation at any time made by or on behalf of the Lender shall not
diminish the Lender's right to rely thereon.

  SECTION 5 COVENANTS

  5.1 Indenture Covenants.  Each of the covenants conferred in the
Indenture applicable to the Company and its Restricted Subsidiaries
are incorporated herein by reference.  The Company covenants and
agrees that, until the Loan and the Notes and all other amounts due
under this Agreement have been indefeasibly paid in full it shall
perform all covenants applied to it or any of its Restricted
Subsidiaries which are contained in the Indenture.

  5.2 Reports of Defaults, Etc.  The Company will deliver to each Lender
and the Trustee promptly upon, but in no event more than five (5)
Business Days after, any Officer's obtaining knowledge of any
condition or event which constitutes a Default, an Event of Default or
a Potential Event of Default, an Officer's Certificate specifying the
nature and period of existence of any such condition or event, or
specifying the notice given or the claim of Default, Event of Default,
Potential Event of Default, or the event or condition, and what action
the Company has taken, is taking and proposes to take with respect
thereto;

  5.3 Payments in U.S. Dollars.  All payments of any Obligations to be
made hereunder or under the Note by the Company or any other obligor
with respect thereto shall be made solely in U.S. Dollars or such
other currency as is then legal tender for public and private debts in
the United States of America.

  5.4 Performance and Enforcement Under the Loan Documents.  The Company
shall promptly perform all of its obligations under the Loan Documents
and each document and instrument related thereto or delivered in
connection with any thereof, in each case, to the extent within its
control.  The Company shall (A) diligently and in good faith promptly
pursue the performance of each other party to each such document, and
(B) diligently seek the enforcement of all rights and remedies under
each such document.

  5.5 Liens.  The Company shall not, nor shall it cause or permit any of
its Restricted Subsidiaries to, directly or indirectly, create, incur,
assume or permit to exist, any Lien on or with respect to any property
or asset (including the Mortgaged Rig) of the Company or of any of its
Restricted Subsidiaries, whether now owned or hereafter acquired, or
assign or otherwise convey any right to receive any income or profits
therefrom, or file or permit the filing of, or permit to remain in
effect, any financing statement or other similar notice of any Lien
with respect to any such property, asset, income or profits under the
Uniform Commercial Code of any State or under any similar recording or
notice statute, except Liens permitted by the Indenture and Liens
permitted by the Loan Documents.

  5.6 Transfer of Mortgage Rig to a Restricted Subsidiary.  The Company
shall not, nor shall the Company cause or permit any of its Restricted
Subsidiaries to, directly or indirectly, transfer the Mortgaged Rig to
any Subsidiary of the Company unless (i) such Subsidiary guarantees
all Obligations of the Company under this Agreement and executes a
Mortgage and a Security Agreement, (ii) the Liens of the Subsidiary's
Mortgage and Security Agreement are perfected and enforceable, and
(iii) such Subsidiary executes a Subsidiary Guarantee pursuant to the
Indenture.

  5.7 Filing of Mortgage.  Promptly upon completion of the Mortgaged Rig,
the Company shall grant a valid and perfected first Lien on the
Mortgaged Rig pursuant to a Mortgage in the form of Exhibit IV
attached hereto.

  SECTION 6 EVENTS OF DEFAULT

  If any of the following conditions of events ("Events of Default")
shall occur and be continuing:

  6.1 Failure To Make Payments When Due.  Failure to pay any installment
of principal including Premium of the Loan when due, whether at stated
maturity, by acceleration, by notice of prepayment or otherwise; or
failure to pay any interest (including Special Interest and Additional
Amounts) on the Loan or any other amount due under this Agreement
continued for 30 days; or

  6.2 Default Under The Indenture.  An Event of Default occurs and is
continuing under the Indenture; or

  6.3 Other Loan Agreement.  An Event of Default (as defined in an other
Loan Agreement) occurs and is continuing under such Other Loan
Agreement; or

  6.4 Breach of Certain Covenants.  Failure of the Company to perform or
comply with any covenant, term or condition contained in Sections 5.2
through 5.7 and Sections 7.3 through 7.5 of this Agreement; or

  6.5 Breach of Warranty.  Any representation, warranty or certification
made by the Company in any Loan Document or in any statement or
certificate at any time given by the Company in writing pursuant
hereto or thereto or in connection herewith or therewith shall be
false or incorrect in any material respect on the date as of which
made or deemed made; or

  6.6 Other Defaults Under Agreement or Loan Documents.  The Company
shall default in the performance of or compliance with any covenant,
term or condition contained in this Agreement or the other Loan
Documents (other than those covered by Sections 5.2 through 5.7 and
such default shall not have been remedied or waived in accordance with
Section 7.6 of this Agreement within 30 days after the date of written
notice of such default from the Lender, the Collateral Agent, the
Trustee or the Holder or Holders of not less than 25% in aggregate
principal amount of the Secured Notes then outstanding; or

  6.7 Involuntary Bankruptcy; Appointment of Custodian, etc.  The entry
by a court having jurisdiction in the premises of (i) a decree or
order for relief in respect of the Company or any Significant
Subsidiary in an involuntary case or proceeding under U.S. bankruptcy
laws, as now or hereafter constituted, or any other applicable
Federal, state, or foreign bankruptcy, insolvency, or other similar
law or (ii) a decree or order adjudging the Company or any Significant
Subsidiary a bankruptcy or insolvent, or approving as properly filed a
petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company or any Significant
Subsidiary under U.S. bankruptcy laws, as now or hereafter
constituted, or any other applicable Federal, state or foreign
bankruptcy, insolvency, or similar law, or appointing a custodian,
liquidator, assignee, trustee, sequestrator or other similar official
of the Company or any Significant Subsidiary or of any substantial
part of the Property or assets of the Company or any Significant
Subsidiary, or ordering the winding up or liquidation of the affairs
of the Company or any 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

  6.8 Voluntary Bankruptcy; Appointment of a Custodian, etc.  The
commencement by the Company or any Significant Subsidiary of a
voluntary case or proceeding under the U.S. bankruptcy laws, as now or
hereafter constituted, or any other applicable Federal, state or
foreign bankruptcy, insolvency or other similar law or of any other
case or proceeding to be adjudicated a bankrupt or insolvent; or
(ii) the consent by the Company or any Significant Subsidiary to the
entry of a decree or order for relief in respect of the Company or any
Significant Subsidiary in an involuntary case or proceeding under U.S.
bankruptcy laws, as now or hereafter constituted, or any other
applicable Federal, state, or foreign bankruptcy, insolvency or other
similar law or to the commencement of any bankruptcy or insolvency
case or proceeding against the Company or any Significant Subsidiary;
or (iii) the filing by the Company or any Significant Subsidiary of a
petition or answer or consent seeking reorganization or relief under
U.S. bankruptcy laws, as now or hereafter constituted, or any other
applicable Federal, state or foreign bankruptcy, insolvency or other
similar law; or (iv) the consent by the Company or any 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 similar official of the Company or any
Significant Subsidiary or of any substantial part of the property or
assets of the Company or any Significant Subsidiary, or the making by
the Company or any Significant Subsidiary of an assignment for the
benefit of creditors; or (v) the admission by the Company or any
Significant Subsidiary in writing of its inability to pay its debts
generally as they become due; or (vi) the taking of corporate action
by the Company or any Significant Subsidiary in furtherance of such
action;

  THEN (i) upon the occurrence of any Event of Default described in
the foregoing Section 6.7 or 6.8, all of the unpaid principal amount
of and accrued interest on the Loan and all other outstanding
Obligations shall automatically become immediately due and payable,
without presentment, demand, protest, waiver of notice of intent to
accelerate and waiver of notice of such acceleration or notice of any
other kind or other requirements of any kind, all of which are hereby
expressly waived by the Company, and Obligations and the Loan
Commitment of the Lender hereunder shall thereupon terminate, and
(ii) upon the occurrence of any other Event of Default, the Lender
shall, upon written notice of the Lender, to the Company, upon written
notice of the Trustee or the Collateral Agent to the Company and the
Lender, or upon written notice of a Holder or Holders of the Secured
Note or Notes, to the Company, the Lender, the Collateral Agent and
the Trustee, declare all of the unpaid principal amount of and accrued
interest on the Loan and all other outstanding Obligations to be, and
the same shall forthwith become, due and payable, and the obligations
and Loan Commitments of the Lender hereunder shall thereupon
terminate; provided, however, that upon the occurrence of an Event of
Default described in Section 6.4 of this Agreement or an "event of
default" under Section 6.4 of any Other Loan Agreement, the Lender
shall not declare the Obligations hereunder to be due and payable for
a period of 60 days after notice of the occurrence of such Event of
Default or "event of default."  Nevertheless, if at any time after
acceleration of the Maturity of the Loan, the Company shall pay all
arrears of interest and all payments on account of the principal
thereof which shall have become due otherwise than by acceleration
(with interest on principal and, to the extent permitted by law, on
overdue interest, at the rates specified in this Agreement or the
Notes) and all Events of Default and Potential Events of Default
(other than non-payment of principal of and accrued interest on the
Loan and the Notes due and payable solely by virtue of acceleration)
shall be remedied or waived pursuant to Section 7.6, then the Lender
shall, upon receipt of the written notice from the Collateral Agent
and the Trustee of such remedy or waiver, by written notice to the
Company rescind and annul the acceleration and its consequences; but
such action shall not affect any subsequent Default, Event of Default
or Potential Event of Default or impair any right consequent thereon.

  SECTION 7 MISCELLANEOUS

  7.1 Pledges and Assignments of Loan and Note.  The Lender shall have
the right at any time to sell, pledge, assign, transfer or negotiate
all or any portion of the Note or its Loan Commitment.  The Company
acknowledges that the Lender will pledge its rights under this
Agreement, the Notes, the Mortgage and the Other Loan Documents to the
Collateral Agent pursuant to the Issuer Security Agreement to secure
the Lender's obligations under the Indenture and the Secured Notes.

  7.2 Expenses.  Whether or not the transactions contemplated hereby
shall be consummated, the Company, its successors and assigns agrees
to promptly pay (i) all the actual costs and expenses of preparation
of the Loan Documents and all the costs of furnishing all opinions by
counsel for the Company (including without limitation any opinions
requested by the Lender as to any legal matters arising hereunder),
and of the Company's performance of and compliance with all agreements
and conditions contained herein on its part to be performed or
complied with; (ii) the reasonable fees, expenses and disbursements of
counsel to the Lender and the Trustee and the Collateral Agent, their
successors and assigns (including allocated costs of internal counsel)
in connection with the negotiation, preparation, execution and
administration of the Loan Documents and the Loan hereunder, and any
amendments, modifications and waivers hereto or thereto and consents
to departures from the terms hereof and thereof; and (iii) after the
occurrence of an Event of Default, all costs and expenses (including
reasonable attorneys fees, including allocated costs of internal
counsel, and costs of settlement) incurred by the Lender, its
successors and assigns in enforcing any Obligations of or in
collecting any payments due from the Company hereunder or under the
Notes by reason of such Event of Default or in connection with any
refinancing or restructuring of the credit arrangements provided under
this Agreement in the nature of a "work-out" or of any insolvency or
bankruptcy proceedings.

  7.3 Indemnity.  In addition to the payment of expenses pursuant to
Section 7.2, whether or not the transactions contemplated hereby shall
be consummated, the Company agrees to indemnify, pay and hold the
Lender, the Collateral Agent, the Trustee and any Holder of the
Secured Notes and holder of the Notes, and each of their officers,
directors, employees, and agents, (collectively called the
"Indemnitees"), harmless from and against any all other liabilities,
obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs, expenses and disbursements of any kind or nature
whatsoever (including, without limitation, the fees and disbursements
of counsel for such Indemnitees in connection with any investigative,
administrative or judicial proceeding commenced or threatened, whether
or not such Indemnitee shall be designated as a party thereto), which
may be suffered by imposed on, incurred by, or asserted against that
Indemnitee, in any manner resulting from, connected with, in respect
of, relating to or arising out of this Agreement, the Notes, the
Mortgage, the Security Agreement, the Lender's agreement to make the
Loan or the use or intended use of any of the proceeds of the Loan
hereunder or the Transactions (the "indemnified liabilities");
provided, however, that the Company shall have no obligation to an
Indemnitee hereunder with respect to indemnified liabilities (i) to
the extent such is finally judicially determined to have resulted
solely from (A) the gross negligence or willful misconduct of that
Indemnitee or (B) the failure of such Indemnitee to perform its
obligations under any Loan Document or (C) such Indemnitee's violation
of law or (ii) in connection with the obligations of any Indemnitee
under any Loan Document.  To the extend that the undertaking to
indemnify, pay and hold harmless set forth in the preceding sentence
may be unenforceable because it is violative of any law or public
policy, the Company shall contribute the maximum portion which it is
permitted to pay and satisfy under applicable law to the payment and
satisfaction of all indemnified liabilities incurred by the
Indemnitees or any of them.

  7.4 Additional Amounts. Except to the extent required by any applicable
law, regulation law, regulation or governmental policy, any and all
payments of, or in respect of the Loan, this Agreement, the Notes, any
Loan Document or any Secured Note shall be made free and clear of  and
without deduction for or on account of any and all present or future
taxes, levies, imposts, deduction, charges or withholdings and all
liabilities with respect thereto imposed by Panama, The Bahamas, The
Marshall Islands or any other jurisdiction with which the Company or
any Subsidiary has some connection (including any jurisdiction (other
than the United States of America) from or through which payments
under this Agreement, the Notes, any Loan Document, the Guarantee or
the Secured Notes are made) or any political subdivision of or any
taxing authority in any such jurisdiction ("Panamanian Taxes,"
"Bahamian Taxes," "MI Taxes," or "Other Taxes," respectively).  If the
Lender, the Company or any Subsidiary Guarantor shall be required by
law to withhold or deduct any Panamanian Taxes, Bahamian Taxes, MI
Taxes, or Other Taxes from or in respect of any sum payable under this
Agreement, the Notes, any Loan Document, the Guarantee or the Secured
Notes, the sum payable by the Company or such Subsidiary Guarantor, as
the case may be, thereunder shall be increased by the amount
("Additional Amounts") necessary so that after making all required
withholdings and deductions, Lender or any Holder or beneficial owner
of Secured Notes shall receive an amount equal to the sum that it
would have received had not such withholdings and deductions been
made; provided that any such sum shall not be paid in respect of any
Panamanian Taxes, Bahamian Taxes, MI Taxes or Other Taxes to a Holder
(an "Excluded Holder") (i) resulting from the beneficial owner of such
Secured Note carrying on business or being deemed to carry on business
in or through a permanent establishment or fixed base in the relevant
taxing jurisdiction or having any other connection with the relevant
taxing jurisdiction or any political subdivision thereof or any taxing
authority therein other than the mere holding or owning of such
Secured Note, being a beneficiary of the Guarantee or any applicable
Subsidiary Guarantee, the receipt of any income or payments in respect
of such Secured Note, the Loan, the Guarantee or any applicable
Subsidiary Guarantee or the enforcement of such Secured Note, the
Loan, the Guarantee or any applicable Subsidiary Guarantee, or (ii)
that would not have been imposed but for the presentation (where
presentation is required) of such Secured Note for payment more than
180 days after the date such payment became due and payable or was
duly provided for, whichever occurs later.  The Lender, the Company or
the Subsidiary Guarantors, as applicable, will also (i) make such
withholding or deduction and (ii) remit the full amount deducted or
withheld to the relevant authority in accordance with applicable law,
and, in any such case, the Lender is required to furnish under the
Indenture to each Holder on whose behalf an amount was so remitted,
within 30 calendar days after the date the payment of any Panamanian
Taxes, Bahamian Taxes, MI Taxes or Other Taxes is due pursuant to
applicable law, certified copies of tax receipts evidencing such
payment by the Lender, the Company or the Subsidiary Guarantors, as
applicable.  The Company will, upon written request of each Holder
(other than an Excluded Holder), reimburse each such holder for the
amount of (i) any Panamanian Taxes, Bahamian Taxes, MI Taxes or Other
Taxes so levied or imposed and paid by such Holder as a result of
payments made under or with respect to any Secured Notes, and (ii) any
Panamanian Taxes, Bahamian Taxes, MI Taxes or Other Taxes so levied or
imposed with respect to any reimbursement under the foregoing clause
(i) so that the net amount received by such Holder (net of payments
made under or with respect to such Secured Notes, the Loan, the
Guarantee or the applicable Subsidiary Guarantees) after such
reimbursement will not be less than the net amount the Holder would
have received if Panamanian Taxes, Bahamian Taxes, MI Taxes or Other
Taxes on such reimbursement had not been imposed.

  At least 30 calendar days prior to each date on which any payment
under or with respect to the Secured Notes is due and payable, if the
Lender, the Company or the Subsidiary Guarantors, as applicable, will
be obligated to pay Additional Amounts with respect to such payment,
the Lender, the Company or the Subsidiary Guarantors, as applicable,
will deliver to the Trustee an officer's certificate stating the fact
that such Additional Amounts will be payable and the amounts will be
payable and the amounts so payable and will set forth such other
information necessary to enable the Trustee to pay such Additional
Amounts to Holders on the payment date.

  7.5 Taxes and Other Taxes.

  A. Any and all payments by the Company hereunder or under any of the
other Loan Documents shall be made free and clear of and without
deduction or withholding for any and all present or future Taxes,
unless such Taxes are required by law or the administration thereof to
be deducted or withheld and excluding (a) in the case of each Lender,
Taxes imposed on its net income and franchise taxes or taxes on gross
receipts and capital imposed on it by the jurisdiction under the laws
of the United States or any political subdivision thereof (all such
nonexcluded Taxes being hereinafter referred to as "Covered Taxes").
If the Company shall be required by Law or the administration thereof
to deduct or withhold any Covered Taxes from or in respect of any sum
payable hereunder or under any other Loan Documents, the sum payable
shall be increased as may be necessary so that after making all
required deductions or withholdings (including deductions or
withholdings applicable to additional amounts paid under this
paragraph), the Lender receives an amount equal to the sum it would
have received if no such deduction or withholding had been made;
(b) the Company shall make such deductions or withholdings; and
(c) the Company forthwith shall pay the full amount deducted or
withheld to the relevant taxation or other authority in accordance
with applicable Law.

  B. The Company agrees to pay forthwith any present or future stamp
documentary taxes or any other excise or property taxes charges or
similar levies (all such taxes, charges and levies being herein
referred to as "Other Taxes") imposed by any jurisdiction (or any
political subdivision or taxing authority thereof or therein) which
arise from any payment made by the Company hereunder or under any of
the other Loan Documents or from the execution, delivery or
registration of, or otherwise with respect to, this Agreement or any
of the other Loan Documents.

  C. The Company agrees to indemnify the Lender for the full amount of
Covered Taxes or Other Taxes not deducted or withheld and paid by the
Company in accordance with Section 7.5(A) and (B) to the relevant
taxation or other authority and any Taxes other than Covered Taxes or
Other Taxes imposed by any jurisdiction on amounts payable by the
Company under this Section 7.5 paid by the Lender and any liability
(including penalties, interest and expenses) arising therefrom or with
respect thereto, whether or not any such Taxes or Other Taxes were
correctly or legally asserted.  Payment under this indemnification
shall be made within 30 days from the date the Lender makes written
demand therefor.  A certificate as to the amount of such Taxes or
Other Taxes and evidence of payment thereof submitted to the Company
shall be prima facie evidence, absent manifest error, of the amount
due from the Company to the Lender.

  D. The Company shall furnish to the Lender the original or a certified
copy of a receipt evidencing any payment of Taxes or Other Taxes made
by the Company as soon as such receipt becomes available.

  E. The provisions of this Section 7.5 shall survive the termination of
the Agreement and repayment of all Obligations.

  7.6 Amendments and Waivers.  No amendment, modification, termination or
waiver of any term or provision of this Agreement, of the Note, the
Mortgage, the Security Agreement or any Other Loan Document or consent
to any departure by the Company therefrom, shall in any event be
effective without the prior written concurrence of the Company, the
Lender, the Collateral Agent and the Trustee, and, upon the request of
the Lender, the Collateral Agent or the Trustee, the receipt of a
written opinion of counsel of the Company addressed to the Lender, the
Collateral Agent and the Trustee to the effect that such amendment,
modification, termination, waiver or consent does not violate or
conflict with any of the terms and provisions of the Indenture or any
Contractual Obligations of the Company.

  7.7 Independence of Covenants.  All covenants hereunder shall be given
independent effect so that if a particular action or condition is not
permitted by any of such covenants, the fact that it would be
permitted by an exception to, or be otherwise within the limitation
of, another covenant shall not avoid the occurrence of an Event of
Default or Potential Event of Default if such action is taken or
condition exists.

  7.8 Notices.  Unless otherwise provided herein, any notice or other
communications herein required or permitted to be given shall be in
writing and may be personally served, telecopied or sent by mail and
shall be deemed to have been given when delivered in person, upon
receipt of telecopy against receipt of answer back or four Business
Days after depositing it in the mail, registered or certified, with
postage prepaid and properly addressed; provided, however, that
notices shall not be effective until received.  For the purposes
hereof, the addresses of the parties hereto (unless notice of a change
thereof is delivered as provided in this Section 7.8) shall be set
forth under each party's name on the signature pages hereto.

  7.9 Survival of Warranties and Certain Agreements.  All agreements,
representations and warranties made herein and in the other Loan
Documents shall survive the execution and delivery of this Agreement
and in the other Loan Documents, the making of the Loan hereunder and
the execution and delivery of the Notes or the Loan Documents and,
notwithstanding the making of the Loan, the execution and delivery of
the Notes and the other Loan Documents or any investigation made by or
on behalf of any party, shall continue in full force and effect.  The
closing of the transactions herein contemplated shall not prejudice
any right of one party against any other party in respect of anything
done or omitted hereunder or in respect of any right to damages or
other remedies.

  7.10 Failure or Indulgence Not Waiver; Remedies Cumulative.  No failure
or delay on the part of the Lender or the holder of the Notes or the
Trustee in the exercise of any power, right or privilege or be
construed to be a waiver of any default or acquiescence therein, nor
shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other
right, power or privilege.  All rights and remedies existing under
this Agreement, the Notes or any other Loan Document are cumulative to
and not exclusive of any rights or remedies otherwise available.

  7.11 Severability.  In case any provision in or obligation under this
Agreement, under a Guarantee or the Notes shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions or obligations, or of such
provision or obligation in any other jurisdiction, shall not in any
way be affected or impaired thereby.

  7.12 Headings.  Section and Section headings in this Agreement are
included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose or be given
any substantive effect.

  7.13 Applicable Law.  THIS AGREEMENT, EACH LOAN DOCUMENT OTHER THAN THE
MORTGAGE AND THE NOTES SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW.

  7.14 Successors and Assigns; Subsequent Holders of Notes.  This
Agreement shall be binding upon the parties hereto and their
respective successors and assigns and shall inure to the benefit of
the parties hereto and the successors and assigns of the Lenders.  The
terms and provisions of this Agreement and each Loan Document shall
inure to the benefit of any assignee or transferee of the Notes
pursuant to Section 7.1, and in the event of such transfer or
assignment, the rights and privileges herein conferred upon the Lender
shall automatically extend to and be vested in such transferee or
assignee, all subject to the terms and conditions hereof.  The
Company's rights or any interest therein hereunder may not be assigned
without the prior express written consent of the Lender and the
Trustee.

  7.15 Counterparts; Effectiveness.  This Agreement and any amendments,
waivers, consents or supplements may be executed in any number of
counterparts and by different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one
and the same instrument.  This Agreement shall become effective upon
the execution of a counterpart hereof by each of the parties hereto.

  7.16 Consent to Jurisdiction; Venue; Waiver of Jury Trial.

  A. Any legal action or proceeding with respect to this Agreement, any
Note or any Loan Document may be brought in the courts of the State of
New York or of the United States for the Southern District of New
York, and, by execution and delivery of this Agreement, each of the
parties to this Agreement hereby irrevocably accepts for itself and in
respect of its respective property, generally and unconditionally, the
jurisdiction of the aforesaid courts.  Each of the parties to this
Agreement hereby further irrevocably waives any claim that any such
courts lack jurisdiction over itself, and agrees not to plead or
claim, in any legal action or proceeding with respect to this
Agreement, the Notes or Loan Documents brought in any of the aforesaid
courts, that any such court lacks jurisdiction over such party.  Each
of the parties to this Agreement irrevocably consents to the service
of process in any such action or proceeding by the mailing of copies
thereof by registered or certified mail, postage prepaid, to such
party, at its respective address for notices pursuant to Section 7.8,
such service to become effective 30 days after such mailing.  To the
extent permitted by law, each of the parties to this Agreement hereby
irrevocably waives any objection to such service of process and
further irrevocably waives and agrees not to plead or claim in any
action or proceeding commenced hereunder or under the Notes or any
Loan Document that service of process was in any way invalid or
ineffective.  Nothing herein shall affect the right of any party to
this Agreement to serve process in any other manner permitted by law
or to commence legal proceedings or otherwise proceed against any
party in any other jurisdiction.

  B. Each of the parties to this Agreement hereby irrevocably waives any
objection which it may now or hereafter have to the laying of venue of
any of the aforesaid any of actions or proceedings arising out of or
in connection with this Agreement, the Notes or any of the Loan
Documents brought in the courts referred to in clause A above and
hereby further irrevocably waives and agrees not to plead or claim in
any such court that any such action or proceeding brought in any such
court has been brought in an inconvenient forum.
C.Each of the parties to this Agreement hereby irrevocably waives all
right to a trial by jury in any action, proceeding or counterclaim
arising out of or relating to this Agreement, the Notes or the Loan
Documents or the transactions contemplated hereby or thereby.

  7.17 Waiver of Stay, Extension or Usury Laws.  The Company covenants
(to the extent that it may lawfully do so) that it will not at any
time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law or any usury law or
other law that would prohibit or forgive the Company from paying all
or any portion of the principal of or interest on the Loan as
contemplated herein, wherever enacted, now or at the time hereafter in
force, or which may affect the covenants or the performance of this
Agreement and (to the extent that it may lawfully do so), the Company
hereby expressly waives all benefit or advantage of any such law, and
covenants that it will not hinder, delay or impede the execution of
any power herein granted to the Lender, but will suffer and permit the
execution of every such power as though no such law had been enacted.

  7.18 Usury Savings Clause.  It is the intention of the parties hereto
to comply with applicable usury laws (now or hereafter enacted);
accordingly, notwithstanding any provision to the contrary in this
Agreement, any Note, any of the other Loan Documents or any other
document related hereto or thereto, in no event shall this Agreement
or any such other document require the payment or permit the
collection of interest in excess of the maximum amount permitted by
such laws.  If from any circumstances whatsoever, fulfillment of any
provision of this Agreement, any Note, any of the other Loan Documents
or of any other document pertaining hereto or thereto, shall involve
transcending the limit of validity prescribed by applicable law for
the collection or charging of interest, then, ipso facto, the
obligation to be fulfilled shall be reduced to the limit of such
validity, and if from any such circumstances the Lender shall ever
receive anything of value as interest or deemed interest by applicable
law under this Agreement, any Note, any of the other Loan Documents or
any other document pertaining hereto or otherwise an amount that would
exceed the highest lawful rate, such amount that would be excessive
interest shall be applied to the reduction of the principal amount
owing under the Loan or on account of any other indebtedness of the
Company, and not to the payment of interest, or if such excessive
interest exceeds the unpaid balance of principal of such indebtedness,
such excess shall be refunded to the Company.  In determining whether
or not the interest paid or payable with respect to any indebtedness
of the Company to Lender under any specified contingency, exceeds the
highest lawful rate, the Company  and the Lender shall, to the maximum
extent permitted by applicable law, (a) characterize any non-principal
payment as an expense, fee or premium rather than as interest,
(b) exclude voluntary prepayments and the effects thereof,
(c) amortize, prorate, allocate and spread the total amount of
interest thereon does not exceed the maximum amount permitted by
applicable laws, and/or (d) allocate interest throughout the full term
of such indebtedness so that interest between portions of such
indebtedness, to the end that no such portion shall bear interest at a
rate greater than that permitted by applicable law.

  WITNESS the due execution hereof by the respective duly authorized
officers of the undersigned as of the date first written above.

                                COMPANY:

                                R&B FALCON CORPORATION

                                By:
                                    Name: Robert Fulton
                                    Title: Executive Vice President

                                Notice Address:

                                    901 Threadneedle
                                    Houston, TX  77079-2982
                                Telephone:       (281) 496-5000
                                Telecopy:         (281) 496-0285

                                LENDER:

                                RBF FINANCE CO.

                                By:
                                    Name: Leighton Moss
                                    Title: Vice President

                                Notice Address:

                                    901 Threadneedle
                                    Houston, TX  77079-2982
                                Telephone:        (281) 496-5000
                                Telecopy:         (281) 597-7556

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

                                                           Exhibit I

                        R&B FALCON CORPORATION

           SENIOR SECURED ___- YEAR TRANCHE PROMISSORY NOTE
                                               New York, New York
$______________                                    March 26, 1999

     FOR VALUE RECEIVED, R&B FALCON CORPORATION (the "Company"),
promises to pay to the order of RBF FINANCE CO. ("Payee"), the
principal amount of _________________________ Dollars ($_____________)
(or such lesser amount as shall equal the aggregate unpaid principal
amount of the __-year Tranche advances of the Loan) at the times
specified by the provisions of the Senior Secured Credit Agreement
dated as of March 26, 1999, as the same may at any time be amended,
modified or supplemented and in effect (the "Loan Agreement") between
the Company and the Lender.

     The Company also promises to pay interest on the unpaid principal
amount hereof from the date hereof until paid in full at the rates and
at the times which shall be determined in accordance with the
provisions of the Loan Agreement.

     This Note is issued pursuant to and entitled to the benefits of
the Loan Agreement, to which reference is hereby made for a more
complete statement of the terms and conditions under which the Loan
evidenced hereby was made and is to be repaid.  Capitalized terms used
herein without definition shall have the meanings set forth in the
Loan Agreement.

     The Senior Secured Credit Agreement dated as of March 26, 1999,
as the same may at any time be amended, modified or supplemented and
in effect (the "Loan Agreement") between the Company, the Lender named
therein, and United States Trust Company of New York, as Trustee.

     All payments of principal and interest in respect of this Note
shall be made in lawful money of the United States of America in same
day funds to Payee at the office of United States Trust Company of New
York located at 114 West 47th Street, 25th Floor, New York, New York,
or at such other place in the State of New York as shall be designated
in writing for such purpose in accordance with the terms of the Loan
Agreement.  Each of Payee and any subsequent holder of this Note
agrees, by its acceptance hereof, that before disposing of this Note
or any part hereof it will make a notation hereon of all principal
payments previously made hereunder and of the date to which interest
hereon has been paid; provided, however, that the failure to make a
notation of any payment made on this Note shall not limit or otherwise
affect the obligation of the Company hereunder with respect to
payments of principal or interest on this Note.

     Whenever any payment on this Note shall be stated to be due on a
day which is not a Business Day, such payment shall be made on the
next succeeding Business Day and such extension of time shall be
included in the computation of the payment of interest on this Note.

     This Note is subject to mandatory prepayment as provided in the
Loan Agreement and prepayment at the option of the Company as provided
in the Loan Agreement.

     THE LOAN AGREEMENT AND THIS NOTE SHALL BE GOVERNED BY, AND SHALL
BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK WITHOUT REGARD TO THE PRINCIPALS OF CONFLICTS OF LAWS.

     Upon the occurrence of an Event of Default, the unpaid balance of
the principal amount of this Note, together with all accrued but
unpaid interest thereon, may become, or may be declared to be, due and
payable in the manner, upon the conditions and with the effect
provided in the Loan Agreement.

     The terms of this Note are subject to amendment only in the
manner provided in the Loan Agreement.

     No reference herein to the Loan Agreement and no provision of
this Note or the Loan Agreement shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay the
principal of and interest on this Note at the place, at the respective
times, and in the currency herein prescribed.

     The Company promises to pay all costs and expenses, including all
attorneys' fees, all as provided in Section 7.2 of the Loan Agreement,
incurred in the collection and enforcement of this Note.  The Company
and endorsers of this Note hereby consent to renewals and extensions
of time at or after the maturity hereof, without notice, and hereby
waive diligence, presentment, protest, demand and notice of every kind
and, to the full extent permitted by law, the right to plead any
statute of limitations as a defense to any demand hereunder.

     IN WITNESS WHEREOF, the Company has caused this Note to be
executed and delivered by its duly authorized officer, as of the day
and year and at the place first above written.

                                R&B FALCON CORPORATION

                                By:
                                Title:

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

                                                            EXHIBIT II

                          NOTICE OF BORROWING

   The undersigned hereby certifies that he is the __________________
of R&B Falcon Corporation, a Delaware corporation ( the "Company"),
and that as such he is authorized to execute this Notice of Borrowing
on behalf of the Company.  With reference to that certain Loan
Agreement dated as of _______________, 1999 (as same may be amended,
modified, increased, supplemented and/or restated from time to time,
the "Agreement") entered into by and between the Company and RBF
Finance Co., and any other future holder of any Note issued pursuant
to the Agreement ("Lender"), the undersigned further certifies,
represents and warrants on behalf of the Company that all of the
foregoing statements are true and correct (each capitalized term used
herein having the same meaning given to it in the Agreement unless
otherwise specified):

     (a)The Company requests that the Lender make an advance to the Company
on the 7-year Tranche of the Loan in the aggregate principal amount of
$_________________ and an advance to the Company on the 10-year
Tranche of the Loan in the aggregate principal amount of $__________
by no later than _______________.  Immediately following such advance,
the aggregate outstanding balance of advances made on the 7-year
Tranche and the 10-year Tranche Loan shall equal $_______________ and
$___________, respectively.

     (b)As of the date hereof, and as a result of the making of the
requested advance, no event shall have occurred and be continuing or
would result from the consummation of the borrowing contemplated by
the Notice of Borrowing which would constitute an Event of Default, a
Potential Event of Default or a Default.

     (c)Borrower has performed and complied with all agreements and
conditions contained in the Agreement which are required to be
performed or complied with by Borrower before or on the date hereof
and, except as waived in writing or otherwise agreed to in writing by
the Lender, all of the conditions precedent set forth in Section 3.1
or 3.2, as applicable, of the Agreement under Conditions to Loan have
been satisfied.

  (d)The representations and warranties of the Company contained in
Section 4 of the Agreement are true, correct and complete in all
material respects on and as of the date hereof to the same extent as
though made on and as of that date, and (ii) on or prior to the date
hereof, the Company has performed and complied with in all material
respects all covenants and conditions to be performed and observed by
the Company on or prior to the date hereof.

     EXECUTED AND DELIVERED this _______ day of _____________, _____.

                                              R&B FALCON CORPORATION

                                              By:
                                              Name:
                                              Title:

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

                                                          SCHEDULE 4.5

                         Title/Lien Exceptions

  1. Statutory  or inchoate liens for amounts not more than 30 days  past
due or that are being contested in good faith.E-FINANCIALDEPOT.COM, INC.
                             1999 STOCK OPTION PLAN

     This  1999 Stock Option Plan (the "Plan") provides for the grant of options
to acquire shares of common stock (the "Common Stock"), of e-financialdepot.com,
a  corporation  (the  "Company").  Stock  options  granted  under this Plan that
qualify  under Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code"),  are  referred to in this Plan as "Incentive Stock Options".  Incentive
Stock  Options  and  stock  options that do not qualify under Section 422 of the
Code  ("Non-Qualified  Stock  Options")  granted under this Plan are referred to
collectively  as  "Options".

1.     PURPOSE

     The  purpose of this Plan is to retain the services of valued key employees
and  consultants of the Company and such other persons as the Plan Administrator
shall  select  in accordance with Section 3 below, and to encourage such persons
to  acquire a greater proprietary interest in the Company, thereby strengthening
their  incentive  to  achieve the objectives of the shareholders of the Company,
and  to  serve  as  an  aid and inducement in the hiring of new employees and to
provide  an  equity  incentive  to consultants and other persons selected by the
Plan  Administrator.

2.     ADMINISTRATION

     This  Plan shall be administered initially by the Board of Directors of the
Company (the "Board"), except that the Board may, in its discretion, establish a
committee  composed  of  two (2) or more members of the Board or two (2) or more
other  persons  to administer the Plan, which committee (the "Committee") may be
an  executive,  compensation  or other committee, including a separate committee
especially  created  for  this purpose.  The Committee shall have the powers and
authority  vested  in  the Board hereunder (including the power and authority to
interpret  any provision of the Plan or of any Option).  The members of any such
Committee  shall  serve at the pleasure of the Board.  A majority of the members
of  the  Committee  shall  constitute a quorum, and all actions of the Committee
shall be taken by a majority of the members present.  Any action may be taken by
a  written  instrument  signed  by  all  of the members of the Committee and any
action  so  taken shall be fully effective as if it had been taken at a meeting.
The  Board  or,  if applicable, the Committee is referred to herein as the "Plan
Administrator".
     Subject  to  the  provisions of this Plan, and with a view to effecting its
purpose,  the  Plan  Administrator  shall  have  sole authority, in its absolute
discretion,  to:
(a)     construe  and  interpret  this  Plan;
(b)     define  the  terms  used  in  the  Plan;
(c)     prescribe,  amend and rescind the rules and regulations relating to this
Plan;
(d)     correct  any  defect, supply any omission or reconcile any inconsistency
in  this  Plan;
(e)     grant  Options  under  this  Plan;

<PAGE>

(f)     determine  the  individuals  to whom Options shall be granted under this
Plan  and  whether  the  Option  is an Incentive Stock Option or a Non-Qualified
Stock  Option;
(g)     determine the time or times at which Options shall be granted under this
Plan;
(h)     determine  the  number of shares of Common Stock subject to each Option,
the  exercise price of each Option, the duration of each Option and the times at
which  each  Option  shall  become  exercisable;
(i)     determine  all  other  terms  and  conditions  of  the  Options;  and
(j)     make  all  other  determinations  and  interpretations  necessary  and
advisable for the administration of the Plan.  All decisions, determinations and
interpretations  made  by the Plan Administrator shall be binding and conclusive
on  all  participants  in the Plan and on their legal representatives, heirs and
beneficiaries.
     The  Board  or,  if  applicable,  the Committee may delegate to one or more
executive officers of the Company the authority to grant Options under this Plan
to  employees  of  the  Company who, on the Date of Grant (as defined in Section
5(b)),  are  not  subject  to Section 16 of the Exchange Act with respect to the
Common  Stock  ("Non-Insiders"), and are not "covered employees" as such term is
defined  for  purposes  of Section 162(m) of the Code ("Non-Covered Employees"),
and  in  connection  therewith  the  authority  to  determine:
(a)     the  number  of  shares  of  Common  Stock  subject  to  such  Options;
(b)     the  duration  of  the  Option;
(c)     the  vesting  schedule  for  determining  the times at which such Option
shall  become  exercisable;  and
(d)     all  other  terms  and  conditions  of  such  Options.
     The exercise price for any Option granted by action of an executive officer
or  officers pursuant to such delegation of authority shall not be less than the
fair  market  value  per share of the Common Stock on the Date of Grant.  Unless
expressly  approved in advance by the Board or the Committee, such delegation of
authority  shall  not  include  the  authority to accelerate vesting, extend the
period  for  exercise  or otherwise alter the terms of outstanding Options.  The
term  "Plan Administrator" when used in any provision of this Plan other than in
Sections  2,  5(f),  5(m)  and  11  shall be deemed to refer to the Board or the
Committee,  as the case may be, and an executive officer who has been authorized
to  grant Options pursuant thereto, insofar as such provisions may be applied to
persons  that  are Non-Insiders and Non-Covered Employees and Options granted to
such  persons.

3.     ELIGIBILITY

     Incentive  Stock  Options may be granted to any individual who, at the time
the  Option is granted, is an employee of the Company or any Related Corporation
(as  defined  below)

<PAGE>

("Employees").  Non-Qualified  Stock  Options may be granted to Employees and to
such  other  persons,  including  directors  and  officers of the Company or any
Related  Corporation,  who  are  not  Employees  as the Plan Administrator shall
select.  Options  may  be  granted  in  substitution  for outstanding Options of
another corporation in connection with the merger, consolidation, acquisition of
property or stock or other reorganization between such other corporation and the
Company  or  any  subsidiary  of  the  Company.  Options  also may be granted in
exchange for outstanding Options.  Any person to whom an Option is granted under
this  Plan  is  referred to as an "Optionee".  Any person who is the owner of an
Option  is  referred  to  as  a  "Holder".
     As  used  in  this  Plan,  the  term  "Related  Corporation" shall mean any
corporation  (other  than  the  Company)  that  is a "Parent Corporation" of the
Company  or  "Subsidiary Corporation" of the Company, as those terms are defined
in  Sections  424(e)  and  424(f),  respectively,  of the Code (or any successor
provisions)  and  the  regulations  thereunder  (as  amended from time to time).

4.     STOCK

     The  Plan  Administrator  is authorized to grant Options to acquire up to a
total  of  3,500,000  shares  of  the  Company's  authorized  but  unissued,  or
reacquired,  Common  Stock.  The  number of shares with respect to which Options
may  be  granted hereunder is subject to adjustment as set forth in Section 5(m)
hereof.  In  the  event that any outstanding Option expires or is terminated for
any  reason,  the shares of Common Stock allocable to the unexercised portion of
such Option may again be subject to an Option granted to the same Optionee or to
a different person eligible under Section 3 of this Plan; provided however, that
any  cancelled Options will be counted against the maximum number of shares with
respect to which Options may be granted to any particular person as set forth in
Section  3  hereof.

5.     TERMS  AND  CONDITIONS  OF  OPTIONS

     Each  Option  granted  under  this  Plan  shall  be  evidenced by a written
agreement  approved by the Plan Administrator (the "Agreement").  Agreements may
contain  such  provisions,  not  inconsistent  with  this  Plan,  as  the  Plan
Administrator  in  its  discretion  may  deem advisable.  All Options also shall
comply  with  the  following  requirements:

(a)     Number  of  Shares  and  Type  of  Option
Each  Agreement  shall  state  the  number of shares of Common Stock to which it
pertains and whether the Option is intended to be an Incentive Stock Option or a
Non-Qualified  Stock  Option.  In  the  absence of action to the contrary by the
Plan  Administrator in connection with the grant of an Option, all Options shall
be  Non-Qualified Stock Options.  The aggregate fair market value (determined at
the  Date  of  Grant,  as  defined  below)  of  the  stock with respect to which
Incentive  Stock  Options  are  exercisable  for  the first time by the Optionee
during  any calendar year (granted under this Plan and all other Incentive Stock
Option plans of the Company, a Related Corporation or a predecessor corporation)
shall  not exceed $100,000, or such other limit as may be prescribed by the Code
as  it may be amended from time to time.  Any portion of an Option which exceeds
the  annual  limit  shall  not be void but rather shall be a Non-Qualified Stock
Option.

<PAGE>

(b)     Date  of  Grant
Each  Agreement shall state the date the Plan Administrator has deemed to be the
effective  date  of  the Option for purposes of this Plan (the "Date of Grant").
(c)     Option  Price
Each  Agreement  shall  state the price per share of Common Stock at which it is
exercisable.  The  exercise  price  shall  be fixed by the Plan Administrator at
whatever  price the Plan Administrator may determine in the exercise of its sole
discretion;  provided  that  the per share exercise price for an Incentive Stock
Option or any Option granted to a "covered employee" as such term is defined for
purposes  of  Section  162(m) of the Code ("Covered Employee") shall not be less
than the fair market value per share of the Common Stock at the Date of Grant as
determined  by the Plan Administrator in good faith; provided further, that with
respect  to  Incentive  Stock Options granted to greater-than-ten percent (>10%)
shareholders  of  the Company (as determined with reference to Section 424(d) of
the  Code),  the exercise price per share shall not be less than one hundred ten
percent  (110%)  of  the  fair market value per share of the Common Stock at the
Date  of  Grant  as  determined  by  the  Plan Administrator in good faith; and,
provided  further,  that Options granted in substitution for outstanding options
of another corporation in connection with the merger, consolidation, acquisition
of  property  or  stock or other reorganization involving such other corporation
and the Company or any subsidiary of the Company may be granted with an exercise
price  equal  to  the  exercise  price  for  the substituted option of the other
corporation,  subject  to  any  adjustment  consistent  with  the  terms  of the
transaction  pursuant  to  which  the  substitution  is  to  occur.
(d)     Duration  of  Options
At  the time of the grant of the Option, the Plan Administrator shall designate,
subject  to  paragraph 5(g) below, the expiration date of the Option, which date
shall  not  be  later  than ten (10) years from the Date of Grant in the case of
Incentive  Stock  Options;  provided,  that the expiration date of any Incentive
Stock  Option  granted  to  a greater-than-ten percent (>10%) shareholder of the
Company  (as  determined with reference to Section 424(d) of the Code) shall not
be  later  than five (5) years from the Date of Grant.  In the absence of action
to  the  contrary  by  the  Plan Administrator in connection with the grant of a
particular  Option,  and  except  in  the  case  of  Incentive  Stock Options as
described  above, all Options granted under this Section 5 shall expire ten (10)
years  from  the  Date  of  Grant.
(e)     Vesting  Schedule
No  Option  shall  be exercisable until it has vested.  The vesting schedule for
each Option shall be specified by the Plan Administrator at the time of grant of
the  Option prior to the provision of services with respect to which such Option
is  granted;  provided,  that if no vesting schedule is specified at the time of
grant,  the  Option  shall  vest  forthwith  upon  granting.

<PAGE>

The  Plan Administrator may specify a vesting schedule for all or any portion of
an  Option  based  on  the  achievement of performance objectives established in
advance  of  the  commencement  by  the  Optionee  of  services  related  to the
achievement  of  the  performance  objectives.  Performance  objectives shall be
expressed in terms of one or more of the following:  return on equity, return on
assets,  share  price,  market  share,  sales,  earnings  per  share, costs, net
earnings, net worth, inventories, cash and cash equivalents, gross margin or the
Company's  performance  relative  to  its  internal  business plan.  Performance
objectives  may  be  in  respect  of  the  performance of the Company as a whole
(whether on a consolidated or unconsolidated basis), a Related Corporation, or a
subdivision, operating unit, product or product line of either of the foregoing.
Performance objectives may be absolute or relative and may be expressed in terms
of a progression or a range.  An Option that is exercisable (in full or in part)
upon the achievement of one or more performance objectives may be exercised only
following  written  notice  to  the  Optionee  and  the  Company  by  the  Plan
Administrator  that  the  performance  objective  has  been  achieved.
(f)     Acceleration  of  Vesting
The  vesting  of  one or more outstanding Options may be accelerated by the Plan
Administrator  at  such  times  and in such amounts as it shall determine in its
sole  discretion.
(g)     Term  of  Option
Vested Options shall terminate, to the extent not previously exercised, upon the
occurrence  of  the  first  of  the  following  events:
(i)     the expiration of the Option, as designated by the Plan Administrator in
accordance  with  Section  5(d)  above;
(ii)     the  date  of  an  Optionee's  termination of employment or contractual
relationship  with  the  Company  or  any  Related  Corporation  for  cause  (as
determined  in  the  sole  discretion  of  the  Plan  Administrator);
(iii)     the  expiration  of  three  (3)  months from the date of an Optionee's
termination  of  employment  or contractual relationship with the Company or any
Related  Corporation  for  any  reason  whatsoever  other  than  cause, death or
Disability  (as  defined  below)  unless,  in  the case of a Non-Qualified Stock
Option,  the  exercise period is extended by the Plan Administrator until a date
not  later  than  the  expiration  date  of  the  Option;  or
(iv)     the  expiration  of  one  year  (1)  from  termination of an Optionee's
employment  or  contractual  relationship  by  reason of death or Disability (as
defined below) unless, in the case of a Non-Qualified Stock Option, the exercise
period  is  extended  by  the Plan Administrator until a date not later than the
expiration  date  of  the  Option.

<PAGE>

     Upon  the  death  of  an  Optionee, any vested Options held by the Optionee
shall  be  exercisable  only  by  the  person or persons to whom such Optionee's
rights  under  such  Option  shall pass by the Optionee's will or by the laws of
descent  and  distribution  of the state or county of the Optionee's domicile at
the  time of death and only until such Options terminate as provided above.  For
purposes  of  the  Plan, unless otherwise defined in the Agreement, "Disability"
shall mean medically determinable physical or mental impairment which has lasted
or  can be expected to last for a continuous period of not less than twelve (12)
months or that can be expected to result in death.  The Plan Administrator shall
determine  whether an Optionee has incurred a Disability on the basis of medical
evidence  acceptable  to the Plan Administrator.  Upon making a determination of
Disability,  the  Plan  Administrator shall, for purposes of the Plan, determine
the date of an Optionee's termination of employment or contractual relationship.
     Unless  accelerated in accordance with Section 5(f) above, unvested Options
shall  terminate  immediately  upon termination of employment of the Optionee by
the  Company  for  any  reason  whatsoever,  including death or Disability.  For
purposes  of  this  Plan,  transfer  of  employment between or among the Company
and/or  any  Related Corporation shall not be deemed to constitute a termination
of employment with the Company or any Related Corporation.  For purposes of this
subsection,  employment  shall  be  deemed  to continue while the Optionee is on
military leave, sick leave or other bona fide leave of absence (as determined by
the Plan Administrator).  The foregoing notwithstanding, employment shall not be
deemed  to  continue beyond the first ninety (90) days of such leave, unless the
Optionee's  re-employment  rights  are  guaranteed  by  statute  or by contract.
(h)     Exercise  of  Options
Options  shall  be  exercisable,  in full or in part, at any time after vesting,
until  termination.  If  less  than  all  of  the  shares included in the vested
portion  of  any  Option  are  purchased,  the remainder may be purchased at any
subsequent  time  prior to the expiration of the Option term.  No portion of any
Option  for  less  than  fifty (50) shares (as adjusted pursuant to Section 5(m)
below)  may  be exercised; provided, that if the vested portion of any Option is
less  than fifty (50) shares, it may be exercised with respect to all shares for
which  it is vested.  Only whole shares may be issued pursuant to an Option, and
to  the  extent  that  an  Option  covers  less  than  one  (1)  share,  it  is
unexercisable.
Options  or  portions  thereof  may be exercised by giving written notice to the
Company, which notice shall specify the number of shares to be purchased, and be
accompanied  by  payment  in  the amount of the aggregate exercise price for the
Common  Stock  so  purchased,  which  payment  shall be in the form specified in
Section  5(i)  below.  The  Company shall not be obligated to issue, transfer or
deliver  a  certificate  of  Common  Stock  to  the  Holder of any Option, until
provision  has  been made by the Holder, to the satisfaction of the Company, for
the  payment of the aggregate exercise price for all shares for which the Option
shall  have  been  exercised  and  for  satisfaction  of  any  tax  withholding
obligations  associated with such exercise.  During the lifetime of an Optionee,
Options  are  exercisable only by the Optionee or in the case of a Non-Qualified
Stock  Option, transferee who takes title to such Option in the manner permitted
by  subsection  5(k)  hereof.

<PAGE>
(i)     Payment  upon  Exercise  of  Option
Upon  the  exercise of any Option, the aggregate exercise price shall be paid to
the  Company  in  cash  or  by  certified  or  cashier's check.  In addition, if
pre-approved  in  writing by the Plan Administrator who may arbitrarily withhold
consent,  the  Holder  may  pay for all or any portion of the aggregate exercise
price  by  complying  with  one  or  more  of  the  following  alternatives:
(i)     by  delivering  to the Company shares of Common Stock previously held by
such  Holder,  or  by  the  Company withholding shares of Common Stock otherwise
deliverable  pursuant  to  exercise  of the Option, which shares of Common Stock
received  or withheld shall have a fair market value at the date of exercise (as
determined  by  the Plan Administrator) equal to the aggregate exercise price to
be  paid  by  the  Optionee  upon  such  exercise;
(ii)     by  delivering  a  properly  executed  exercise  notice  together  with
irrevocable  instructions  to  a  broker promptly to sell or margin a sufficient
portion  of the shares and deliver directly to the Company the amount of sale or
margin  loan  proceeds  to  pay  the  exercise  price;  or
(iii)     by  complying  with  any  other payment mechanism approved by the Plan
Administrator  at  the  time  of  exercise.
(j)     Rights  as  a  Shareholder
A  Holder  shall  have  no  rights  as  a shareholder with respect to any shares
covered  by  an Option until such Holder becomes a record holder of such shares,
irrespective  of  whether  such Holder has given notice of exercise.  Subject to
the provisions of Section 5(m) hereof, no rights shall accrue to a Holder and no
adjustments  shall  be  made on account of dividends (ordinary or extraordinary,
whether  in cash, securities or other property) or distributions or other rights
declared  on, or created in, the Common Stock for which the record date is prior
to  the  date  the  Holder becomes a record holder of the shares of Common Stock
covered  by  the Option, irrespective of whether such Holder has given notice of
exercise.
(k)     Transfer  of  Option
Options  granted under this Plan and the rights and privileges conferred by this
Plan  may  not  be  transferred, assigned, pledged or hypothecated in any manner
(whether  by  operation  of  law or otherwise) other than by will, by applicable
laws  of  descent  and distribution or (except in the case of an Incentive Stock
Option)  pursuant  to  a  qualified  domestic  relations order, and shall not be
subject  to execution, attachment or similar process; provided however, that any
Agreement may provide or be amended to provide that a Non-Qualified Stock Option
to  which  it  relates  is  transferable  without  payment  of  consideration to
immediate family members of the Optionee or to trusts or partnerships or limited
liability  companies established exclusively for the benefit of the Optionee and
the  Optionee's immediate family members.  Upon any attempt to transfer, assign,
pledge,  hypothecate  or  otherwise

<PAGE>

dispose  of  any  Option  or  of  any  right or privilege conferred by this Plan
contrary  to  the provisions hereof, or upon the sale, levy or any attachment or
similar  process  upon  the  rights  and privileges conferred by this Plan, such
Option  shall  thereupon  terminate  and  become  null  and  void.
(l)     Securities  Regulation  and  Tax  Withholding
(i)     Shares shall not be issued with respect to an Option unless the exercise
of  such  Option  and the issuance and delivery of such shares shall comply with
all relevant provisions of law, including, without limitation, Section 162(m) of
the  Code,  any applicable state securities laws, the Securities Act of 1933, as
amended,  the  Exchange  Act,  the  rules  and  regulations  thereunder  and the
requirements of any stock exchange or automated inter-dealer quotation system of
a  registered national securities association upon which such shares may then be
listed,  and  such  issuance shall be further subject to the approval of counsel
for  the  Company with respect to such compliance, including the availability of
an  exemption  from  registration for the issuance and sale of such shares.  The
inability of the Company to obtain from any regulatory body the authority deemed
by  the  Company  to be necessary for the lawful issuance and sale of any shares
under this Plan, or the unavailability of an exemption from registration for the
issuance  and  sale  of any shares under this Plan, shall relieve the Company of
any  liability  with  respect  to  the  non-issuance  or  sale  of  such shares.
As  a condition to the exercise of an Option, the Plan Administrator may require
the Holder to represent and warrant in writing at the time of such exercise that
the  shares are being purchased only for investment and without any then-present
intention  to  sell  or  distribute  such  shares.  At  the  option  of the Plan
Administrator,  a  stop-transfer  order against such shares may be placed on the
stock  books  and records of the Company, and a legend indicating that the stock
may  not  be pledged, sold or otherwise transferred unless an opinion of counsel
is provided stating that such transfer is not in violation of any applicable law
or  regulation,  may  be stamped on the certificates representing such shares in
order to assure an exemption from registration.  The Plan Administrator also may
require such other documentation as may from time to time be necessary to comply
with  federal  and  state  securities  laws.  THE  COMPANY  HAS NO OBLIGATION TO
UNDERTAKE  REGISTRATION  OF  OPTIONS  OR  THE  SHARES OF STOCK ISSUABLE UPON THE
EXERCISE  OF  OPTIONS.
(ii)     The  Holder  shall  pay to the Company by certified or cashier's check,
promptly  upon  exercise  of an Option or, if later, the date that the amount of
such  obligations becomes determinable, all applicable federal, state, local and
foreign  withholding  taxes  that  the  Plan  Administrator,  in its discretion,
determines  to  result  upon  exercise  of an Option or from a transfer or other

<PAGE>

disposition  of  shares  of  Common Stock acquired upon exercise of an Option or
otherwise  related to an Option or shares of Common Stock acquired in connection
with  an  Option.  Upon approval of the Plan Administrator, a Holder may satisfy
such  obligation  by  complying  with  one or more of the following alternatives
selected  by  the  Plan  Administrator:
A.     by  delivering  to  the Company shares of Common Stock previously held by
such  Holder  or  by  the  Company  withholding shares of Common Stock otherwise
deliverable pursuant to the exercise of the Option, which shares of Common Stock
received  or withheld shall have a fair market value at the date of exercise (as
determined  by  the Plan Administrator) equal to any withholding tax obligations
arising  as  a  result  of  such  exercise,  transfer  or  other  disposition;
B.     by  executing  appropriate  loan  documents  approved  by  the  Plan
Administrator  by  which  the  Holder  borrows funds from the Company to pay any
withholding  taxes  due under this paragraph 5(l)(ii), with such repayment terms
as  the  Plan  Administrator  shall  select;  or
C.     by  complying  with  any  other  payment  mechanism  approved by the Plan
Administrator  from  time  to  time.
(iii)     The  issuance,  transfer  or  delivery of certificates of Common Stock
pursuant  to  the  exercise  of Options may be delayed, at the discretion of the
Plan  Administrator,  until  the  Plan  Administrator  is  satisfied  that  the
applicable  requirements  of  the  federal  and  state  securities  laws and the
withholding provisions of the Code have been met and that the Holder has paid or
otherwise  satisfied  any  withholding  tax  obligation as described in 5(l)(ii)
above.
(m)     Stock  Dividend  or  Reorganization
(i)     If  (1)  the  Company  shall  at  any  time be involved in a transaction
described  in  Section  424(a)  of  the Code (or any successor provision) or any
"corporate transaction" described in the regulations thereunder; (2) the Company
shall  declare  a dividend payable in, or shall subdivide or combine, its Common
Stock or (3) any other event with substantially the same effect shall occur, the
Plan  Administrator  shall,  subject  to  applicable  law,  with respect to each
outstanding  Option, proportionately adjust the number of shares of Common Stock
subject to such Option and/or the exercise price per share so as to preserve the
rights  of  the  Holder  substantially proportionate to the rights of the Holder
prior  to  such  event,  and  to  the  extent  that such action shall include an
increase  or  decrease  in  the  number  of  shares  of  Common Stock subject to
outstanding Options, the number of shares available under Section 4 of this Plan
shall

<PAGE>

automatically  be  increased  or decreased, as the case may be, proportionately,
without  further  action on the part of the Plan Administrator, the Company, the
Company's  shareholders,  or  any  Holder.
(ii)     In the event that the presently authorized capital stock of the Company
is changed into the same number of shares with a different par value, or without
par value, the stock resulting from any such change shall be deemed to be Common
Stock  within  the  meaning of the Plan, and each Option shall apply to the same
number of shares of such new stock as it applied to old shares immediately prior
to  such  change.
(iii)     If  the  Company  shall  at any time declare an extraordinary dividend
with respect to the Common Stock, whether payable in cash or other property, the
Plan  Administrator  may, subject to applicable law, in the exercise of its sole
discretion  and  with respect to each outstanding Option, proportionately adjust
the  number  of  shares of Common Stock subject to such Option and/or adjust the
exercise  price  per  share  so  as  to  preserve  the  rights  of  the  Holder
substantially proportionate to the rights of the Holder prior to such event, and
to  the  extent  that  such  action shall include an increase or decrease in the
number  of  shares of Common Stock subject to outstanding Options, the number of
shares  available  under Section 4 of this Plan shall automatically be increased
or decreased, as the case may be, proportionately, without further action on the
part  of the Plan Administrator, the Company, the Company's shareholders, or any
Holder.
(iv)     The  foregoing  adjustments  in  the shares subject to Options shall be
made  by the Plan Administrator, or by any successor administrator of this Plan,
or  by  the  applicable  terms  of  any  assumption  or  substitution  document.
(v)     The grant of an Option shall not affect in any way the right or power of
the  Company  to make adjustments, reclassifications, reorganizations or changes
of  its  capital  or  business  structure, to merge, consolidate or dissolve, to
liquidate  or  to  sell  or  transfer all or any part of its business or assets.

6.     EFFECTIVE  DATE;  SHAREHOLDER  APPROVAL
     Incentive  Stock Options may be granted by the Plan Administrator from time
to  time  on  or  after  the  date on which this Plan is adopted (the "Effective
Date")  through  the  day  immediately  preceding  the  tenth anniversary of the
Effective  Date.  Non-Qualified  Stock  Options  may  be  granted  by  the  Plan
Administrator  on  or after the Effective Date and until this Plan is terminated
by  the  Board  in  its  sole  discretion.  Termination  of  this Plan shall not
terminate  any  Option  granted  prior to such termination.  Any Incentive Stock
Options  granted by the Plan Administrator prior to the approval of this Plan by
the shareholders of the Company in accordance with Section 422 of the Code shall
be  granted  subject  to  ratification  of  this Plan by the shareholders of the
Company  within  twelve  (12)  months  before  or after the Effective Date.  Any
Option  granted  by  the Plan Administrator to any Covered Employee prior to the
approval  of  this  Plan  by  the  shareholders  of  the

<PAGE>
Company  in  accordance  with  such  Code  provision shall be granted subject to
ratification  of this Plan by the shareholders of the Company within twelve (12)
months  before or after the Effective Date.  If such shareholder ratification is
sought  and not obtained, all Options granted prior thereto and thereafter shall
be  considered  Non-Qualified  Stock  Options and any Options granted to Covered
Employees  will not be eligible for the exclusion set forth in Section 162(m) of
the  Code  with  respect  to  the  deductibility  by  the  Company  of  certain
compensation.

7.     NO  OBLIGATIONS  TO  EXERCISE  OPTION
     The  grant  of  an  Option  shall impose no obligation upon the Optionee to
exercise  such  Option.

8.     NO  RIGHT  TO  OPTIONS  OR  TO  EMPLOYMENT
     Whether  or  not  any  Options  are  to be granted under this Plan shall be
exclusively  within  the  discretion  of  the  Plan  Administrator,  and nothing
contained  in  this  Plan  shall  be construed as giving any person any right to
participate  under this Plan.  The grant of an Option shall in no way constitute
any  form  of  agreement  or understanding binding on the Company or any Related
Company, express or implied, that the Company or any Related Company will employ
or  contract  with an Optionee for any length of time, nor shall it interfere in
any  way  with  the Company's or, where applicable, a Related Company's right to
terminate  Optionee's  employment  at  any time, which right is hereby reserved.

9.     APPLICATION  OF  FUNDS
     The  proceeds  received by the Company from the sale of Common Stock issued
upon  the  exercise  of  Options  shall  be used for general corporate purposes,
unless  otherwise  directed  by  the  Board.

10.     INDEMNIFICATION  OF  PLAN  ADMINISTRATOR
     In addition to all other rights of indemnification they may have as members
of  the  Board,  members  of  the Plan Administrator shall be indemnified by the
Company  for  all  reasonable  expenses  and  liabilities of any type or nature,
including  attorneys'  fees,  incurred  in  connection  with any action, suit or
proceeding  to  which  they  or  any  of  them  are  a party by reason of, or in
connection  with,  this  Plan or any Option granted under this Plan, and against
all amounts paid by them in settlement thereof (provided that such settlement is
approved  by  independent  legal counsel selected by the Company), except to the
extent  that  such expenses relate to matters for which it is adjudged that such
Plan  Administrator  member  is  liable  for  willful misconduct; provided, that
within  fifteen  (15)  days  after  the  institution of any such action, suit or
proceeding,  the  Plan  Administrator member involved therein shall, in writing,
notify  the  Company of such action, suit or proceeding, so that the Company may
have the opportunity to make appropriate arrangements to prosecute or defend the
same.

11.     AMENDMENT  OF  PLAN
     The  Plan  Administrator  may, at any time, modify, amend or terminate this
Plan  or  modify  or  amend  Options granted under this Plan, including, without
limitation,  such  modifications  or

<PAGE>

amendments  as  are  necessary  to maintain compliance with applicable statutes,
rules  or  regulations;  provided  however,  no  amendment  with  respect  to an
outstanding Option which has the effect of reducing the benefits afforded to the
Holder  thereof  shall  be  made  over  the  objection  of  such Holder; further
provided,  that  the  events  triggering  acceleration of vesting of outstanding
Options  may be modified, expanded or eliminated without the consent of Holders.
The  Plan Administrator may condition the effectiveness of any such amendment on
the  receipt of shareholder approval at such time and in such manner as the Plan
Administrator  may consider necessary for the Company to comply with or to avail
the  Company and/or the Optionees of the benefits of any securities, tax, market
listing or other administrative or regulatory requirement.  Without limiting the
generality of the foregoing, the Plan Administrator may modify grants to persons
who are eligible to receive Options under this Plan who are foreign nationals or
employed  outside  the  United States to recognize differences in local law, tax
policy  or  custom.
Effective  Date:  October  31,  1999

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