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                                                                   EXHIBIT 10.14


                                                                    (TODCO LOGO)

                                      TODCO
                                SEVERANCE POLICY


SCOPE

This policy applies to all US shore-based salaried employees of the Company and
designated US Payroll International Employees.

RESPONSIBILITY

Human Resources

PURPOSE

The purpose of this policy is to define the severance policy of the Company.

ELIGIBILITY

This policy shall apply to US shore based salaried employees and designated US
Payroll International Employees of the Company with the job titles identified in
Exhibit A attached hereto ("Eligible Employees"). No benefit shall be payable
under this policy to employees who by written employment agreement are entitled
to other severance payments in the event of a Change of Control. As a condition
precedent to eligibility each employee will be required to execute a binding
release satisfactory to the Company pursuant to which such employee releases the
Company from any liability in connection with employment by the Company.

POLICY

In the event of an qualifying termination of the employment of an Eligible
Employee by the Company within one year after the effective date of a "Change in
Control" as defined below the Company shall pay such employee a severance,
benefit in the amount specified below: A qualifying termination shall be deemed
to have occurred when the employment of an Eligible Employee is terminated by
the Company for any reason or upon resignation by an Eligible Employee following
notification of a reduction of salary, a relocation of employment in excess of
fifty miles from such employee's current work site, a reduction in job title or
a significant reduction of responsibility.

BENEFIT

SENIOR EXECUTIVES. One year's salary plus the amount of such employee's target
bonus under the Company's Performance Bonus Plan for the year in which the
termination occurs.

KEY EMPLOYEES AND OTHER MID-MANAGEMENT EMPLOYEES - Four weeks pay for every year
of service plus a proportionate share of such employee's target bonus under the
Company's Performance Bonus Plan for the year in which the termination occurs
with a maximum benefit of one half of annual salary plus one half of target
bonus.

ALL OTHER US SHORE-BASED NON ROTATIONAL SALARIED EMPLOYEES. -Two weeks salary
for every year of service with a minimum payment of 4 weeks pay and a maximum
benefit of one half of annual salary.

For purposes of this policy the date used for establishing Seniority will be the
actual hire date by TODCO, Transocean Inc their affiliates or predecessors.


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CHANGE IN CONTROL

"Change in Control." A Change in Control of TODCO shall be deemed to have
occurred as of the first (1st) day any one or more of the following conditions
shall have been satisfied:

         (i)   The acquisition by any individual, entity or group (within the
               meaning of Section 13(d)(3) or 14(d)(2) of the Securities
               Exchange Act of 1934, as amended (the "Exchange Act")) (a
               "Person") of beneficial ownership (within the meaning of Rule
               13d-3 promulgated under the Exchange Act) of shares representing
               20% or more of the combined voting power of the then outstanding
               voting securities of TODCO entitled to vote generally in the
               election of directors (the "Outstanding TODCO Voting
               Securities"); provided, however, that for purposes of this
               subsection (i), the following acquisitions shall not constitute a
               Change in Control: (A) any acquisition directly from TODCO, (B)
               any acquisition by TODCO (it being understood that an acquisition
               by an acquiror of greater than 20% of the Outstanding TODCO
               Voting Securities directly from TODCO shall not prevent such
               acquiror from causing a subsequent Change in Control if it
               thereafter acquires an additional 20% of the Outstanding TODCO
               Voting Securities in a transaction that would otherwise
               constitute a Change of Control), (C) any acquisition by any
               employee benefit plan (or related trust) sponsored or maintained
               by TODCO or any corporation or other entity controlled by TODCO,
               (D) any acquisition by any corporation or other entity pursuant
               to a transaction which complies with clauses (A), (B) and (C) of
               Section (iii) below, (E) an acquisition of securities effected in
               connection with a distribution of any class of Common Stock of
               TODCO to shareholders of Transocean Inc. in a transaction
               (including any distribution in exchange for shares of capital
               stock or other securities of Transocean Inc.) intended to qualify
               as a tax-free distribution under Section 355 of the Internal
               Revenue Code of 1986, as amended (the "Code"), or any successor
               provision (a "Tax-Free Spin-Off"), (F) any acquisition by
               Transocean Inc. or any of its affiliates excluding TODCO and its
               subsidiaries (collectively, "Transocean"), (G) any acquisition
               from Transocean pursuant to a public offering of securities
               registered under a registration statement filed with the
               Securities and Exchange Commission, or (H) any acquisition
               immediately following which Transocean has beneficial ownership
               of at least 50% or more of the Outstanding TODCO Voting
               Securities; provided that any such acquisition that, but for this
               clause (H), would otherwise constitute a Change of Control under
               this Section (i) shall be deemed to be a Change in Control at the
               time that Transocean no longer has beneficial ownership of at
               least 50% or more of the Outstanding TODCO Voting Securities, if
               such individual, entity or group that made such acquisition
               continues to own 20% or more of the Outstanding TODCO Voting
               Securities following such time that Transocean no longer has such
               beneficial ownership;

         (ii)  Individuals who, as of the date hereof, are members of the Board
               (the "Incumbent Board") cease for any reason to constitute at
               least a majority of the Board; provided, however, that for
               purposes of this definition, any individual becoming a director
               subsequent to the date hereof whose election, or nomination for
               election by TODCO's shareholders, was approved by either (A) a
               vote of at least a majority of the directors then comprising the
               Incumbent Board or (B) Transocean, shall be considered as though
               such individual were a member of the Incumbent Board, but
               excluding, for this purpose, any such individual whose initial
               assumption of office occurs as a result of an actual or
               threatened election contest with respect to the election or
               removal of directors or other actual or


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               threatened solicitation of proxies or consents by or on behalf of
               a Person other than either Transocean or the Board;

         (iii) Consummation of a reorganization, merger, conversion or
               consolidation or sale or other disposition of all or
               substantially all of the assets of TODCO (a "Business
               Combination"), in each case, unless, following such Business
               Combination, (A) all or substantially all of the individuals and
               entities who were the beneficial owners, respectively, of the
               Outstanding TODCO Voting Securities immediately prior to such
               Business Combination beneficially own, directly or indirectly,
               more than fifty percent (50%) of the then outstanding combined
               voting power of the then outstanding voting securities entitled
               to vote generally in the election of directors of the corporation
               or other entity resulting from such Business Combination
               (including, without limitation, a corporation or other entity
               which as a result of such transaction owns TODCO or all or
               substantially all of TODCO's assets either directly or through
               one or more subsidiaries) in substantially the same proportions
               as their ownership, immediately prior to such Business
               Combination of the Outstanding TODCO Voting Securities, (B) no
               Person (excluding Transocean and any corporation or other entity
               resulting from such Business Combination or any employee benefit
               plan (or related trust) of TODCO or such corporation or other
               entity resulting from such Business Combination) beneficially
               owns, directly or indirectly, twenty percent (20%) or more of the
               combined voting power of the then outstanding voting securities
               of the corporation or other entity resulting from such Business
               Combination except to the extent that such ownership existed
               prior to the Business Combination and (C) at least a majority of
               the members of the board of directors of the corporation or other
               entity resulting from such Business Combination were members of
               the Incumbent Board at the time of the execution of the initial
               agreement, or of the action of the Board, providing for such
               Business Combination;

         (iv)  Approval by the shareholders of TODCO of a complete liquidation
               or dissolution of TODCO other than in connection with the
               transfer of all or substantially all of the assets of TODCO to
               Transocean or to an affiliate or a subsidiary of TODCO; or

         (v)   A "Change of Control" of Transocean, as defined in Section 6.10
               of the Long-Term Incentive Plan of Transocean, as amended and
               restated as of January 1, 2000, which occurs while Transocean
               owns 50% or more of the Outstanding TODCO Voting Securities.

         Notwithstanding the foregoing, no Business Combination between
         Transocean and TODCO and its subsidiaries or between TODCO and its own
         subsidiaries shall constitute a Change in Control under this Policy.


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                                    EXHIBIT A

                               Eligible Employees


<Table>
<Caption>
-----------------------------------------------------------------------------------------------------
SENIOR EXECUTIVES                                OTHER MIDMANAGEMENT
-----------------------------------------------------------------------------------------------------
<S>                                              <C>
CEO & President                                  Project Engineer
-----------------------------------------------------------------------------------------------------
Senior VP & Chief Financial Officer              Manager, Qualify, Safety, Rig Support
-----------------------------------------------------------------------------------------------------
VP Marketing                                     Manager, Recruiting
-----------------------------------------------------------------------------------------------------
VP Controller                                    Supervisor, Payroll
-----------------------------------------------------------------------------------------------------
VP Offshore Operations                           Maintenance Supt
-----------------------------------------------------------------------------------------------------
VP, General Counsel                              Compliance Engineer
-----------------------------------------------------------------------------------------------------
District Manager-Barge Division                  Training Manager
-----------------------------------------------------------------------------------------------------
VP Human Resources                               Manager, Accounting
-----------------------------------------------------------------------------------------------------
QHSE Manager                                     Supervisor, Purchasing
-----------------------------------------------------------------------------------------------------
                                                 Contract Manager
-----------------------------------------------------------------------------------------------------
KEY EMPLOYEES                                    Manager, HSE
-----------------------------------------------------------------------------------------------------
                                                 Sr. LAN Administrator
-----------------------------------------------------------------------------------------------------
Marketing Manager                                Executive Asst.
-----------------------------------------------------------------------------------------------------
Rig Operations Manager                           Supervisor, Benefit Plans
-----------------------------------------------------------------------------------------------------
Treasurer                                        Manager, Cash
-----------------------------------------------------------------------------------------------------
Sr. Marketing Representative                     Office Manager
-----------------------------------------------------------------------------------------------------
Rig Manager
-----------------------------------------------------------------------------------------------------
Drilling Superintendent                          ALL OTHER US SHORE-BASED NON ROTATIONAL
                                                 SALARIED EMPLOYEES
-----------------------------------------------------------------------------------------------------
Int'l/Tax Accounting Manager
-----------------------------------------------------------------------------------------------------
District Manager
-----------------------------------------------------------------------------------------------------
Asst. Controller
-----------------------------------------------------------------------------------------------------
Business Development Manager
-----------------------------------------------------------------------------------------------------
District Controller
-----------------------------------------------------------------------------------------------------
Rig Maintenance Manager
-----------------------------------------------------------------------------------------------------
Manager, Engineering
-----------------------------------------------------------------------------------------------------
Manager, IT
-----------------------------------------------------------------------------------------------------
District Maintenance Supervisor
-----------------------------------------------------------------------------------------------------

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</Table>