Document:

Exhibit 10.3

 

Transocean

Special
Transition Severance Plan

for
Shore-Based Employees

 

 

SUMMARY PLAN DESCRIPTION AND PLAN DOCUMENT

 

 

Effective

 

November
27, 2007 through November 27, 2009

 

 

Table of
Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Purpose of the Plan

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Eligibility for Severance Benefit

  	
  5

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Benefit Calculation and Payment of Severance Benefit

  	
  6

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Additional Benefits

  	
  8

  
	
   

  	
   

  	
   

  
	
  6.

  	
  All Other Benefit Plans and Programs

  	
  12

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Tax Considerations - Code Section 409A; Code Section
  280G

  	
  12

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Unemployment Benefits; Taxes

  	
  14

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Payment of Severance Benefits on Death

  	
  14

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Health Benefit Continuation of Eligible Surviving
  Dependents upon Death

  	
  14

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Non-Assignment of Severance Payment

  	
  14

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Duration of the Plan

  	
  15

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Adoption of Plan by Affiliates; Plan Administrator

  	
  15

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Claims Procedures

  	
  16

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Participant Rights

  	
  18

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Prior Severance Plans

  	
  19

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Plan Document Controls

  	
  20

  
	
   

  	
   

  	
   

  
	
  18.

  	
  Construction

  	
  20

  
	
   

  	
   

  	
   

  
	
  19.

  	
  Controlling Law

  	
  20

  
	
   

  	
   

  	
   

  
	
  20.

  	
  General Information

  	
  20

  

 

 

Transocean

Special
Transition Severance Plan

For
Shore-Based Employees

 

SUMMARY PLAN DESCRIPTION AND PLAN DOCUMENT

 

(Effective November
27, 2007 through  November 27, 2009)

 

1.             Purpose
of the Plan

 

The Transocean Special
Transition Severance Plan for Shore-Based Employees (the “Plan”) was adopted
effective for the period November 27, 2007 through  November
27, 2009  (the “Severance Protection Period”).
The purposes of the Plan are:

 

(a)           to make Severance
Benefits available to eligible Affected Employees to financially assist with
their transition following involuntary termination of employment with an
Employer, other than for Cause, during the Severance Protection Period; and

 

(b)           to resolve any possible
claims arising out of employment, including the Affected Employee’s
termination, by providing eligible Affected Employees with benefits in return
for a Waiver and Release.

 

The Plan is voluntarily
offered by the Employers, and benefits under the Plan are not required by any legal
obligation other than the Plan itself. All references to specific plans herein
include successor plans thereto.

 

The Plan supersedes,
amends and restates all prior severance plans, practices and policies (other
than individual contracts providing for severance benefits) in effect with any
Employer, specifically including the Transocean Executive Severance Policy  and the GlobalSantaFe Severance Program for Shorebased
Staff Personnel; provided, however, that the
Transocean Executive Change of Control Severance Benefit policy remains in
effect and is not superseded by the Plan. Such prior severance plans, practices
and policies are discontinued and terminated with respect to all Affected
Employees eligible for a benefit under the Plan.

 

The benefits provided
under the Plan shall not duplicate the benefits provided to an Affected
Employee under any other severance or termination plan, policy, arrangement or
agreement.

 

2.             Definitions

 

As used in the Plan, the
following terms shall have the following meanings (and the singular includes
the plural, unless the context clearly indicates otherwise):

 

1

 

Adjusted Service
Date: 
The date determined by the Plan Administrator based on periods of active
employment service time (net service time). Net service time for Employees with
no breaks in service equals the cumulative time of active employment from the
Employee’s original date of hire to the Employee’s Termination Date. Net
service time for Employees with breaks in service equals the sum of all active
employment periods, provided that (i) breaks in service of less than 31
calendar days are not deducted from the calculation of net service time and (ii)
net service time does not include periods of inactive employment, including but
not limited to, short term disability, long term disability, standby time,
other approved leaves of absence (whether paid or unpaid), and paid periods of
layoff or severance. Net service time includes periods of active employment
with Global Marine Inc. and Santa Fe Corporation.

 

Affected Employee: An individual who (i) is employed by Transocean, GlobalSantaFe or
any of their Affiliates as of the day immediately prior to the Closing Date and
remains continuously employed by Transocean or its Affiliates until his
Termination Date, (ii) is an “Employee” (as defined below) as of his
Termination Date, (iii) is not covered by an individual employment or severance
agreement with an Employer as of his Termination Date, (iv) is not eligible to
participate in the Transocean Executive Change of Control Severance Benefit policy
as of his Termination Date, (v) is terminated involuntarily and not  for Cause during the Severance Protection Period,
and (vi) timely executes the required form of Waiver and Release.

 

Affiliate:  Transocean,
and any corporation that, together with Transocean, is a member of a controlled
group of corporations under Code Section 414(b) or is under common control
pursuant to Code Section 414(c).

 

Base Pay:  The
Affected Employee’s annual base salary or pay, excluding bonuses, overtime,
commissions, cost-of-living adjustments, special pay related to foreign
assignment, and other irregular or extra compensation, as of his Termination
Date. Hourly base pay will be converted to a weekly amount by multiplying the
Affected Employee’s hourly rate by the Affected Employee’s regularly scheduled
hours per week, excluding overtime hours. “Weekly Base Pay” equals Base Pay
divided by 52, and “Monthly Base Pay” equals Base Pay divided by 12.

 

Cause:  Unacceptable
or inadequate employment performance, including but not limited to, failure to
perform the Affected Employee’s job (i) at a level consistent with the Affected
Employee’s performance level prior to the Closing Date, or (ii) in an
acceptable manner; misconduct; dishonesty; acts detrimental or destructive to
Transocean or its Affiliates or to any employees or property of Transocean or
its Affiliates; or a violation of any applicable Employer employment policies
of which the Affected Employee has, or should have, knowledge.

 

Closing Date:  The closing date of the merger between
Transocean Inc., GlobalSantaFe Corporation, and Transocean Worldwide Inc., as
contemplated by that certain Agreement and Plan of Merger dated as of July 21,
2007.

 

2

 

COBRA:  The
Consolidated Omnibus Budget Reconciliation Act of 1985, currently embodied in
Code Section 4980B, which provides for continuation of group health plan
coverage in certain circumstances.

 

COBRA Rate:  The cost of continued coverage under COBRA,
which is 102% of the full group rate (including the employee’s share and the
Employer’s share of the group coverage cost plus a 2% administrative fee).

 

Code:  The
Internal Revenue Code of 1986, as amended, and the regulations issued
thereunder.

 

Company Seniority
Date:  The date
reflected on Transocean’s records evidencing a continuous period of employment
with Transocean. If hired before January 1, 2000, seniority is recognized as
based on the seniority date with the original hiring company (i.e., Transocean,
Transocean Offshore, Sedco Forex or R&B Falcon). Employees terminated due
to a reduction in workforce by Transocean and subsequently rehired within 12
months of such termination are credited with previous seniority time, exclusive
of any period not employed by Transocean. If an Employee was terminated for
cause or resigned, and in either case was subsequently rehired, the Employee’s
seniority will recommence at the rehire date with no credit for the period of previous
employment (or the period not employed by Transocean). For this purpose,
resignation also includes the refusal of a position offered while employed or
laid-off.

 

Employee:  An “Employee” means each active, regular,
full-time, shore-based employee of an Employer who is paid on an Employer’s
U.S.-dollar payroll, as paid from the Houston or Barbados payroll department,
and excludes any employee paid pursuant to a rig pay scale and any employee not
classified by an Employer or an Affiliate as a “regular full-time employee.”  Further, the definition of “Employee” excludes
(a) any employee covered by a collective bargaining agreement that does not specifically
provide for his coverage under the Plan, (b) any person, regardless of whether
such person is treated as an employee for income tax purposes, who has agreed
in writing to be treated as other than an employee, and (c) any person subject
to U.S. income tax whose compensation is reported to the Internal Revenue
Service on a form other than Form W-2 or whose compensation is reported on a
Form W-2 solely by a person or entity other than an Employer. The determination
of whether an Employee is paid on an Employer’s U.S.-dollar payroll will be
made by the Plan Administrator in its sole discretion.

 

For purposes of
this definition, “full-time” means regularly scheduled employment for at least
30 hours per week. Except as required under the Family and Medical Leave Act of
1993 (“FMLA”) or the Uniformed Services Employment and Reemployment Rights Act
(“USERRA”) or any other applicable law, an individual on any unpaid leave from
an Employer, an individual receiving short-term disability benefits (including
salary continuation) or long-term disability benefits under a program offered
by an Employer, or an individual receiving worker’s compensation benefits will
not be considered an active Employee until the individual’s return to active
service of an Employer.

 

3

 

Employer:
 Transocean, GlobalSantaFe, or any
Affiliate (as the context requires) that participates in the Plan pursuant to
Section 13 hereof.

 

ERISA:  The
Employee Retirement Income Security Act of 1974, as amended.

 

Expatriate
Commuter:  An employee
working on a rotational basis outside his country of origin.

 

Expatriate
Resident:  An employee
working in a shore-based position outside his country of origin (includes an employee
working on an Expatriate Resident Project or Expatriate Resident Temporary
Assignment).

 

Expatriate
Resident Commuter:  An
employee working in a shore-based position that is paid on one of the Employer’s
U.S.-dollar payrolls, and (i) who works in an expatriate resident position but
commutes due to the living conditions of the assigned country, or (ii) who
works in a roving position.

 

Expatriate
Resident Project:  An
employee working in a shore-based position outside his country of origin on a
specific project assignment for a planned duration of one year or longer.

 

Expatriate
Resident Temporary Assignment:  An employee working in a shore-based position
outside his country of origin on a specific project assignment for a planned
duration of longer than three months but no more than one year.

 

GlobalSantaFe:  GlobalSantaFe Corporation, a company
incorporated under the laws of the Cayman Islands, and any affiliated
companies, as it existed immediately prior to the Closing Date.

 

Plan:  The
Transocean Special Transition Severance Plan for Shore-Based Employees, as set
forth in this document.

 

Plan Administrator:  The
person or persons appointed by Transocean to serve as plan administrator, as
further described in Section 19 hereof.

 

Qualifying Events:  The events described in Section 3(a) hereof.

 

Retirement Date:  The date as of which the Affected Employee (or
in the event of his death, his spouse or beneficiary) receives a lump-sum
distribution or commences receipt of monthly retirement payments under any of
the GlobalSantaFe Retirement Plan for Employees, the GlobalSantaFe Non-U.S.
Retirement Plan, the Transocean U.S. Retirement Plan or the Transocean
International Retirement Plan.

 

Service:  
The sum of (i) those periods reflected in the Affected Employee’s Company
Seniority Date for Transocean Employees or Adjusted Service Date for
GlobalSantaFe Employees and (ii) the period of the Affected Employee’s active,
regular (not temporary), full-time employment with an Employer or Affiliate,
whether or not shore-based and whether or not on a U.S.-dollar payroll, from
and after the Merger Closing Date and

 

4

 

ending on the Affected
Employee’s Termination Date. “Service” specifically does not include the length
of the Severance Continuation Period.

 

Severance Benefit:  A benefit described in Section 4 hereof.

 

Severance
Continuation Period:  The period of time,
commencing on the day immediately following the Termination Date, equal to the
total number of weeks, or portions thereof, if applicable, of Weekly Base Pay
that an Affected Employee is entitled to receive as a Severance Benefit under the
Plan.

 

Severance
Protection Period:  November 27, 2007 through November 27, 2009.

 

Termination Date:  The date immediately following the date an
Employee terminates active employment with the Employer and upon which the
Employee’s involuntary termination shall take effect.

 

Transocean:  Transocean Inc., a company incorporated under
the laws of the Cayman Islands, and any successor thereto.

 

U.S.:  United States of America.

 

U.S. National
Resident:  An employee
working in a shore-based position in the U.S. who is a U.S. citizen, U.S.
national resident or non-U.S citizen hired in the U.S. to work in the U.S.

 

Waiver and Release:  The
legal document in which an Affected Employee, in exchange for certain benefits
under the Plan, releases each Employer and all other Affiliates, their agents,
servants, employees, officers, directors, insurance carriers, employee benefit
plans, and trustees, fiduciaries and agents of such plans, and any and all
other persons, firms, organizations and corporations from liability and damages
arising from or in connection with the Affected Employee’s employment or the
cessation of his employment by the Employer or any other Affiliate and agrees,
among other things, to certain restrictions on disclosure of confidential
information and solicitation of employees of the Employer or any other
Affiliate. Such Waiver and Release shall be in the applicable form attached
hereto as Exhibit A or Exhibit B.

 

Waiver and Release
Requirement:  The requirement that an Affected
Employee in exchange for certain benefits under the Plan: (i) execute and
return to the Plan Administrator, by the date established by the Plan
Administrator for such purpose, a Waiver and Release, and (ii) not revoke the
Waiver and Release within the seven-day period following its execution and
return.

 

3.             Eligibility
for Severance Benefit

 

(a)           Qualifying Events

 

An Affected
Employee will receive a Severance Benefit under the Plan only if all of the
following events occur:

 

5

 

(i)            the Affected Employee
is terminated involuntarily and not for Cause during the Severance Protection
Period;

 

(ii)           the Affected Employee
remains employed by his Employer in good standing and at a satisfactory level
of performance until the Termination Date; and

 

(iii)          the Affected Employee
fulfills the Waiver and Release Requirement.

 

Each eligible Affected Employee is hereby advised to consult an
attorney before signing a Waiver and Release.

 

(b)           Disqualifying Events

 

NO
Severance Benefit will be paid if any of the following events occur:

 

(i)            the Affected Employee’s
termination of employment results from death, disability, or except as
otherwise required by law, layoff during an unpaid leave of absence; or

 

(ii)           the Affected Employee
is offered a similar shore-based position with equivalent duties, pay and
benefits by an Employer or an Affiliate, whether or not the Affected Employee
accepts the position; or

 

(iii)          the Affected Employee
accepts a shore-based position with an Employer or an Affiliate, regardless of
the level of Base Pay; however, the Employee may again become eligible if he subsequently
experiences the Qualifying Events while the Plan is in effect; or

 

(iv)          the Affected Employee
fails to return all property and materials of each Employer and all Affiliates to
his supervisor or other appropriate representative(s) of the Employer and the
Affiliates no later than the Affected Employee’s Termination Date; or

 

(v)           in connection with any
sale or other transfer of any business or assets of any Employer, the Affected
Employee remains in substantially the same job regardless of whether a change
of employers is a result of such sale or transfer; or

 

(vi)          the Affected Employee
fails to fulfill the Waiver and Release Requirement.

 

4.             Benefit
Calculation and Payment of Severance Benefit

 

The amount of Severance
Benefit will be based on the Affected Employee’s (a) Base Pay, (b) Service and
(c) pay in lieu of notice, determined as follows:

 

(a)           Base Pay: one
month of Monthly Base Pay for every $20,000 of the Affected Employee’s Monthly Base
Pay; plus

 

6

 

(b)           Service:

 

(i)            For Affected
Employees with 10 or fewer years of Service: one week of Weekly Base Pay
for every year of Service; or

 

(ii)           For Affected
Employees with 10 or more through 20 years of Service: one week of Weekly Base
Pay for every year of Service through 10 years, plus two weeks of Weekly Base
Pay for every year of Service in excess of 10 years; or

 

(iii)          For Affected
Employees with more than 20 years of Service: one week of Weekly Base Pay
for every year of Service through 10 years, plus two weeks of Weekly Base Pay
for every year of Service in excess of 10 years through 20 years, plus three
weeks of Weekly Base Pay for every year of Service in excess of 20 years; plus

 

(c)           Pay in Lieu of
Notice: two weeks of Weekly Base Pay.

 

The Severance Benefit
will be prorated for Base Pay in excess of each $20,000 increment and for partial
years of Service. The “Pay in Lieu of Notice” component is provided whether or
not an Affected Employee timely receives notice of termination.

 

The Severance Benefit
will equal the sum of the following:

 

(i)            the number of months
determined under Section 4(a) above (including prorated months for partial
increments of Base Pay over $20,000 and multiples thereof) multiplied by the
Affected Employee’s Monthly Base Pay; plus

 

(ii)           the number of weeks
determined under Section 4(b) above (including prorated partial weeks)
multiplied by the Affected Employee’s Weekly Base Pay; plus

 

(iii)          the number of weeks set
forth under Section 4(c) above multiplied by the Affected Employee’s Weekly
Base Pay.

 

The Severance
Continuation Period is determined by dividing the Affected Employee’s
Severance Benefit by the Affected Employee’s Weekly Base Pay.

 

Notwithstanding the
above, the amount of an Affected Employee’s Severance Benefit shall not be less
than 26 weeks nor more than 104 weeks of the Affected Employee’s Weekly Base
Pay. Furthermore, amounts payable under the Plan shall be offset by any amounts
payable to the Affected Employee under any other severance plan (including the
Cash Termination Indemnity Plan) or agreement, but shall not be offset by any
rig-based and shore-based retention bonus plans.

 

Additionally, any
Affected Employee who is either a U.S. citizen or working in the U.S. and over
the age of 39 years on his Termination Date is eligible for an additional
$2,000 lump sum, when applicable. This payment shall not be included in the
determination of the minimum and maximum weeks of Severance Benefit available.

 

7

 

Except as indicated in
(x) and (y) below, the Severance Benefit will be paid as salary continuation
during the Affected Employee’s Severance Continuation Period, and will be
disbursed in payroll checks in accordance with the Affected Employee’s payroll
schedule in effect on his Termination Date.

 

(x) If an Affected
Employee is a participant in a defined benefit retirement plan sponsored by an
Employer on his Termination Date, and the sum of his actual Service on his
Termination Date and the length of his Severance Continuation Period equals
less than five years, the Affected Employee will receive a lump-sum
distribution of his Severance Benefit.

 

(y) If an Affected
Employee is a participant in the Transocean International Retirement Plan, a
defined contribution plan, on his Termination Date, and the sum of his actual
Service on his Termination Date and the length of his Severance Continuation
Period equals less than two years, the Affected Employee will receive a
lump-sum distribution of his Severance Benefit.

 

Section 9 of the Plan
provides for the payment of the Severance Benefit in the event of the death of
the Affected Employee.

 

5.             Additional
Benefits

 

An Affected Employee who
satisfies all the requirements for any Severance Benefit under the Plan,
including the Waiver and Release Requirement, will be entitled to the following
benefits in addition to the Severance Benefit, subject to the terms of the
governing plans or successor plans:

 

(a)           Defined Benefit
Retirement Plans 

 

If an Affected Employee
(i) is an active participant in the Transocean U.S. Retirement Plan, the
GlobalSantaFe Retirement Plan for Employees, or the GlobalSantaFe Non-US.
Retirement Plan on his Termination Date, (ii) does not receive a lump-sum
distribution of his Severance Benefit, and (iii) is not  specifically
excluded from eligibility for the following benefits under the terms of the
applicable retirement plan, such Affected Employee’s retirement plan
calculation will be adjusted as follows:

 

(i)            The Affected Employee’s
age will be his actual age at the end of the Severance Continuation Period;

 

(ii)           The Affected Employee’s
“Credited Service” and “Vesting Service” will include the Severance
Continuation Period;

 

(iii)          In (i) and (ii) above,
the age, “Credited Service” and “Vesting Service” so credited will be limited
to the length of the Severance Continuation Period between the Affected
Employee’s Termination Date and Retirement Date;

 

8

 

(iv)          The Affected Employee’s
pensionable earnings will include the Severance Benefit paid during the
Severance Continuation Period, but only through the Affected Employee’s
Retirement Date; and

 

(v)           If an Affected Employee
is rehired by an Employer or Affiliate during the Severance Continuation
Period, no additional age or service credit will be granted on or after the
date of re-hire.

 

Rules governing
non-discrimination testing may apply and limit benefits for certain highly
compensated employees. In addition, rules governing limits of eligible income
and payments under a qualified plan may limit benefits payable from a qualified
retirement plan. Affected Employees whose benefit will be affected by these
limits will be notified and payments may be made from the non-qualified plan or
plans in which an Affected Employee is otherwise eligible to participate.

 

(b)           Defined Contribution
Retirement Plans

 

(i)            If an Affected
Employee is a participant in the Transocean International Retirement Plan on his
Termination Date and does not receive a lump-sum distribution of his Severance
Benefit, the Affected Employee will continue to be eligible to receive defined
contribution plan employer contributions throughout the Severance Continuation
Period.

 

In addition, the Affected
Employee’s service under the Transocean International Retirement Plan will be
increased by the length of the Severance Continuation Period; provided,
however, that such service credit will be limited to the period between the
Affected Employee’s Termination Date and Retirement Date.

 

Defined contribution plan
employee contributions are not allowed during the Severance Continuation
Period.

 

(ii)           If an Affected Employee
is a participant in the GlobalSantaFe 401(k) Savings Plan on his Termination
Date, the Affected Employee’s account in the GlobalSantaFe 401(k) Savings Plan
will be fully vested as of his Termination Date. No Affected Employee may make
employee contributions, nor will any employer contributions be made on behalf
of the Affected Employee, to the GlobalSantaFe 401(k) Savings Plan following
the Affected Employee’s Termination Date.

 

(c)           Medical Plan, Dental
Plan and Employee Assistance Plan

 

Affected Employees shall
be eligible to elect continued medical and/or dental coverage, including
eligible dependent coverage for dependents covered on the Affected Employee’s
Termination Date, at the applicable active employee rate beginning on the
Termination Date and continuing until the earlier of the date the Affected
Employee is eligible for other employer coverage or the expiration of the
Severance Continuation Period.

 

9

 

Affected Employees shall
also be eligible for continued coverage in the Employer’s employee assistance plan.

 

An Affected Employee
classified as a U.S. National Resident, Expatriate Resident or Expatriate
Resident Commuter who repatriates to the U.S. will be eligible for medical
and/or dental coverage under and subject to the governing provisions of the
applicable U.S.-based health care plan and will be required to pay the active
employee rate for such plan, if elected.

 

An Affected
Employee who (i) was employed by Transocean or an Affiliate immediately prior
to the Closing Date, (ii) is classified as an Expatriate Resident or Expatriate
Resident Commuter, and (iii) will be residing outside the U.S., shall be
eligible for the Transocean International Group Medical and Dental Benefits
Plan, and if an Affected Employee elects such coverage, will participate in and
be required to pay the active employee rate during the Severance Continuation
Period as if in Expatriate Commuter status.

 

An Affected Employee who
(i) was employed by GlobalSantaFe or its subsidiaries immediately prior to the
Closing Date, (ii) is classified as an Expatriate Resident or Expatriate
Resident Commuter, and (iii) will be residing outside the U.S., shall be
eligible for medical and/or dental coverage under the applicable U.S-based
health care plan or BUPA plan, and if an Affected Employee elects such coverage,
will participate in and be required to pay the active employee rate for such
plan during the Severance Continuation Period.

 

The Severance
Continuation Period shall run concurrently with the COBRA coverage period, if
applicable, and the Affected Employee may be entitled to continue coverage
pursuant to the provisions of COBRA for any remaining COBRA coverage period (as
measured from the Termination Date), as applicable, at the COBRA Rate after the
Severance Continuation Period ends.

 

Affected Employees not
eligible for COBRA coverage may elect to continue coverage after the Severance
Continuation Period for any remaining period up to a total of 18 months (as
measured from the Termination Date) at a rate equal to 102% of the total employee
and Employer cost of coverage.

 

The benefits described in
this Section supersede and replace any and all continuation of medical, dental and
employee assistance coverage otherwise provided to Affected Employees upon
termination of employment to the extent allowable by law.

 

All medical plan
coverages, dental plan coverages, and contribution rates are subject to change at
any time and from time to time.

 

(d)           Retiree Medical 

 

If an Affected Employee
elects a Retirement Date during the Severance Continuation Period, the Affected
Employee may elect the Employer’s applicable

 

10

 

retiree medical coverage,
provided that the election is made within 30 days of the end of the Severance
Continuation Period. If elected, retiree medical coverage will begin on the day
immediately following the cessation in the applicable active employee medical
plan and participation in the applicable active employee medical plan described
in Section 5(c) above will cease as of the end of the Severance Continuation
Period.

 

If, on or before the end
of the Severance Continuation Period, an Affected Employee is at least age 50
years, has completed at least 10 years of Service and the sum of his age and
years of Service equals at least 65, the Affected Employee shall be eligible to
elect retiree medical coverage, including dependent coverage, under the retiree
medical plan for which the Affected Employee is eligible or will become
eligible to participate at such time as he retires. For the purpose of
determining retiree medical coverage eligibility, age shall be the Affected
Employee’s actual age at the end of the Severance Continuation Period and any
service requirement shall be determined by using the sum of Service and the
length of the Severance Continuation Period. The Affected Employee is
responsible for paying the applicable retiree rate per the current retiree rate
schedule.

 

An Affected
Employee who (i) was employed by Transocean or its Affiliates immediately prior
to the Closing Date, (ii) is classified as an Expatriate Resident or Expatriate
Resident Commuter, and (iii) resides outside the U.S., may elect either the
Transocean U.S. Group Medical Benefits Plan retiree coverage or an additional
12 months of Transocean International Group Medical Benefits Plan coverage, and
if an Affected Employee so elects, with participation and contribution rates
determined as if Expatriate Commuter status.

 

Regardless of age
and/or Service, Affected Employees of an Employer who are eligible to retire
and who have been grandfathered in their eligibility for retiree medical
coverage shall continue to be eligible for retiree medical coverage as stated
in the grandfathered terms and conditions as set forth in the applicable
summary plan descriptions.

 

The Affected Employee must
elect retiree medical coverage within 30 days after the last day of his
Severance Continuation Period as a condition to receipt of retiree medical
coverage.

 

Retiree medical coverage
may be terminated at any time and for any reason. All retiree medical contribution
rates are subject to change at any time and from time to time.

 

11

 

(e)           Outplacement
Assistance 

 

Affected Employees
will be offered outplacement assistance for such period and in such manner as
Transocean may determine in its sole discretion. Transocean will determine the
provider of the outplacement assistance. An Affected Employee will be notified
of the provision of outplacement assistance.

 

6.             All
Other Benefit Plans and Programs

 

An Affected Employee’s
participation in all other employee benefit plans and/or programs of any
Employer will cease as of his Termination Date, subject to the terms and
conditions of the governing documents and/or policies of those employee benefit
plans and/or programs.

 

If an Affected Employee
qualifies for a Severance Benefit under the Plan, his termination will be
considered a termination “for the convenience of the Company” as applicable
pursuant to the terms of any benefit plan, award or agreement in effect on
November 27, 2007.

 

Except as otherwise
indicated in Section 5(b), no employee or employer contributions to any
Employer-sponsored savings or retirement plans during the Severance
Continuation Period will be allowed.

 

Whether an Affected
Employee satisfies the requirements for a Severance Benefit, his rights under
any Employer’s health care plan, health care reimbursement plan and/or
dependent care reimbursement plan will be governed by the provisions of each
respective plan and, with respect to any such health care plan and health care
reimbursement plan, the provisions of COBRA.

 

7.             Tax
Considerations - Code Section 409A; Code Section 280G

 

(a)           Code
Section 409A.

 

(i)            General
Rule. Transocean intends that the Plan comply in form and operation with the
provisions of Code Section 409A to the extent applicable. Notwithstanding
anything in the Plan to the contrary, if any Plan provision or payment made
under the Plan would result in the imposition of an excise tax under Code Section
409A, the Plan Administrator shall use its best efforts to reform such
provision or payment in a manner the Plan Administrator determines is
appropriate to comply with Code Section 409A, and no such action shall be
deemed to adversely affect the rights of any Affected Employee under the Plan. An entitlement to a series of payments under the
Plan is to be treated as an entitlement to a series of separate payments.

 

(ii)           Specified
Employees. If an Affected Employee is a “specified employee,” as such term
is defined in Code Section 409A, any payments payable as a result of

 

12

 

the Affected Employee’s termination of employment
(other than death) shall not be payable before the earliest of (x) the date
that is six months after the Affected Employee’s termination, (y) the date of
the Affected Employee’s death, or (z) the date that otherwise complies with the
requirements of Code Section 409A. This Section shall be applied by
accumulating all payments that otherwise would have been paid within six months
of the Affected Employee’s termination and paying such accumulated amounts
(without interest) at the earliest date which complies with the requirements of
Code Section 409A.

 

(iii)          Reimbursements. All reimbursements
pursuant to the Plan shall be made in accordance with Treasury Regulation §1.409A-3(i)(1)(iv)
such that the reimbursements will be deemed payable at a specified time or on a
fixed schedule relative to a permissible payment event. Specifically, the
amounts reimbursed during one taxable year of the Affected Employee may not
affect the amounts reimbursed in any other taxable year (except that total
reimbursements may be limited by a lifetime maximum under a group health plan),
the reimbursement of an eligible expense shall be made on or before the last
day of the Affected Employee’s taxable year following the taxable year in which
the expense was incurred, and the right to reimbursement is not subject to
liquidation or exchange for another benefit.

 

(b)           Code Section 280G.

 

(i)            General
Rule. Notwithstanding any contrary provisions in any plan, program or
policy of an Employer and except as provided in subsection (ii) below, if
all or any portion of the benefits payable under the Plan, either alone or
together with other payments and benefits which an Affected Employee is to
receive or is entitled to receive from an Employer or Affiliate, would
constitute a “parachute payment” within the meaning of Code Section 280G,
the Employer shall reduce the payments and benefits payable under the Plan to
the extent necessary so that no portion thereof shall be subject to the excise
tax imposed by Code Section 4999, but only if, by reason of such reduction, the
net after-tax benefit shall exceed the net after-tax benefit if such reduction
were not made. “Net after-tax benefit” for these purposes shall mean the sum of
(w) the total amount payable to the Affected Employee under the Plan, plus
(x) all other payments and benefits which the Affected Employee receives
or is then entitled to receive from an Employer or Affiliate that, alone or in
combination with the payments and benefits payable under the Plan (after taking
into account any reduction contemplated in subsection (iii)), would constitute
a “parachute payment” within the meaning of Code Section 280G (each such
benefit hereinafter referred to as an “Additional Parachute Payment”), less (y)
the amount of federal income taxes payable with respect to the foregoing
calculated at the maximum marginal income tax rate for each year in which the
foregoing shall be paid to the Affected Employee (based upon the rate in effect
for such year as set forth in the Code at the time of the payment under the
Plan), less (z) the amount of excise taxes imposed with respect to the
payments and benefits described in (w) and (x) above by Code Section 4999.

 

13

 

(ii)           Exception
if Gross-Up Applies. If an Affected Employee is entitled to a Gross-Up
Payment with respect to an Additional Parachute Payment paid pursuant to any
other plan, program or policy of an Employer or Affiliate, the provisions of
Section 7(b) above shall not apply. A “Gross-Up Payment” means a payment by an
Employer or Affiliate to cover the excise tax imposed on an Additional
Parachute Payment by Code Section 4999.

 

(iii)          Ordering Rule. Notwithstanding any
contrary provisions in any other plan, program or policy of an Employer or
Affiliate, if any plan, program or policy of an Employer or Affiliate provides
for a reduction designed to avoid the Code Section 4999 excise tax, such
reduction shall first be applied to any Additional Parachute Payment subject to
such reduction and, after having given effect to such reduction, the provisions
of Section 7(b) above shall apply to the benefits payable under the Plan.

 

8.             Unemployment
Benefits; Taxes

 

Payments under the Plan
will not be reduced because of any unemployment benefits an Affected Employee
may be eligible to receive under applicable federal or state unemployment laws.
Any required U.S. federal or state income and employment tax withholding will
be deducted from any benefit paid under the Plan.

 

9.             Payment
of Severance Benefits on Death

 

If an Affected Employee
dies on or after his Termination Date and after executing and returning the
Waiver and Release (without having timely revoked it) but before receiving his
full Severance Benefit, the remaining Severance Benefit will be paid to the
executor or legal representative of the Affected Employee’s estate in a lump
sum as soon as practicable after the date of death.

 

10.          Health
Benefit Continuation of Eligible Surviving Dependents upon Death

 

If an Affected Employee
dies on or after his Termination Date and after executing and returning the
Waiver and Release (without having timely revoked it), his surviving dependents
who would have been eligible for continuation health care coverage, as
described above in Section 5(c), will be allowed to continue receiving health
care coverage under the same terms and for the same period of time as if the
Affected Employee had not died.

 

11.          Non-Assignment
of Severance Payment

 

No benefit under the Plan
will be subject to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance or charge, voluntary or involuntary, by operation of law or
otherwise, and any attempt to do so will be void. Further, no benefit under the
Plan will be liable for or subject to the debts, contracts, liabilities,
engagements or torts of the person entitled to it, except as required by law.

 

14

 

12.          Duration
of the Plan

 

The Plan shall continue
in effect through the Severance Protection Period. The Plan may be amended by
written action of Transocean at any time and from time to time; provided,
however, that the Plan shall not be amended during the Severance Protection
Period in any way adverse to Affected Employees without their prior written
consent, and provided further that no amendment pursuant to Section 7(a)(1)
shall be deemed adverse to any Affected Employee.

 

13.          Adoption
of Plan by Affiliates; Plan Administrator

 

Each Affiliate of
Transocean and GlobalSantaFe will be considered an Employer and will remain an
Employer under the Plan if it employed an Affected Employee as of the day
immediately preceding the Closing Date or as of any time thereafter, provided
that an Affiliate will not be an Employer if the Affiliate is specifically
excluded from coverage under the Plan either through amendment of the Plan or
by action of the Board of Directors of Transocean or such Affiliate.

 

By its participation in
the Plan, each Affiliate acknowledges the appointment and authority of the Plan
Administrator by Transocean and agrees to the Plan’s terms. By its
participation in the Plan, an Affiliate also authorizes and designates
Transocean and the Plan Administrator as the Affiliate’s agents to act in all
transactions affecting the continued operation of the Plan.

 

The Plan Administrator
shall have such powers as may be necessary to discharge its duties under the
Plan, including, but not by way of limitation, the following powers and duties:

 

(i)            to construe and
interpret the Plan, decide all questions of eligibility and determine the
amount, manner and time of payment of any benefits hereunder;

 

(ii)           to prescribe procedures
to be followed by Affected Employees filing applications for benefits, if
applicable;

 

(iii)          to receive from the
Employers and from Affected Employees such information as shall be necessary
for the proper administration of the Plan;

 

(iv)          to prepare and
distribute, in such manner as the Plan Administrator determines to be
appropriate, information explaining the Plan;

 

(v)           to furnish the
Employers, upon request, such annual reports with respect to the administration
of the Plan as are reasonable and appropriate;

 

(vi)          to appoint or employ
individuals to assist in the administration of the Plan and any other agents it
deems advisable, including legal counsel; and

 

15

 

(vii)         to interpret and construe
all terms, provisions, conditions and limitations of the Plan and to reconcile
any inconsistency or supply any omitted detail that may appear in the Plan in
such manner and to such extent as it shall determine consistent with the
general terms of the Plan.

 

14.          Claims
Procedures

 

(a)           Making a Claim

 

If benefits due
under the Plan have not been provided within the applicable time frame
specified for such benefits, an Affected Employee, his beneficiary or an
authorized representative (referred to as the “Claimant”) must request those
benefits in writing from the Plan Administrator within 90 days of the
Termination Date or termination of benefit payments. Claims will be evaluated
and approved or denied by the Plan Administrator in accordance with the terms
of the Plan.

 

This
Section 14 describes procedures that must be followed by the Plan in
denying a claim, or by the Claimant in appealing the denial of a claim.

 

For all claims and
appeals, the time frame during which a benefit determination must be made
begins when the claim or appeal is filed as required by the Plan, even if all
of the information necessary to make a benefit determination is not a part of
the filing. If the deadline for a decision on a claim or appeal is extended
because the Claimant did not provide all of the information necessary to decide
the claim, the deadline for making the benefit determination will be extended
by the length of time that passes between the extension notice and the date on
which the requested additional information is provided to the Plan
Administrator.

 

A Claimant may not
sue for any Plan benefits until he has exhausted all of the appeal procedures
provided in this Section 14.

 

(b)           Denial of a Claim

 

If a claim for
benefits is denied under the Plan, the Claimant will be given written or
electronic notice of the denial within a reasonable period of time after the
claim is received. This will not be later than 90 days after the claim was
received unless special circumstances require an extension of time for
processing. If there is an extension, the Claimant will be given written notice
of the extension, the reason for the extension within the initial 90-day period
after the claim was received, and the date by which the decision is expected to
be made. The extension will not extend beyond 180 days after the original claim
was received by the Plan Administrator.

 

Any notice that a
claim for benefits has been denied will include:

 

(i)            the specific reason(s)
for the denial;

 

(ii)           the specific
provision(s) of the Plan on which the denial is based;

 

16

 

(iii)          a description of any
additional material or information necessary in order for the claim to be
approved, and an explanation of why that material or information is necessary;
and

 

(iv)          an explanation of how to
appeal the denial, including a statement of the Claimant’s right to file a
lawsuit under Section 502(a) of ERISA if his claim is denied on appeal.

 

(c)           Appealing a Denied
Claim

 

If the claim is
denied, the Claimant can request reconsideration of the claim denial by the
Plan Administrator. The request must be made in writing within 60 days after
the date the Claimant receives the claim denial. In connection with the appeal,
the Claimant may provide the Plan Administrator written comments, documents,
records and other information relating to the claim for benefits. The Claimant
also will be provided, upon request and free of charge, reasonable access to,
and copies of, all documents, records, and other information relevant to the
claim for benefits. This includes any such item that:

 

(i)            was relied on in
making a benefit determination;

 

(ii)           was submitted,
considered or generated in making the benefit determination, regardless of
whether it was relied on; or

 

(iii)          demonstrates compliance
with administrative processes and safeguards designed to ensure benefit
determinations are appropriately made in accordance with the Plan.

 

(d)           Review of Denied
Claim on Appeal

 

The Plan
Administrator will reconsider any denied claim for which it receives an appeal
as set forth in Subsection 14(c). The Plan Administrator’s review will
take into account all comments, documents, records, and other information
submitted by the Claimant relating to the claim, even if this information was
not submitted or considered in the initial benefit determination.

 

The Plan
Administrator must make its decision on the appeal within a reasonable period
after receiving the appeal, but not later than 60 days after the appeal
was received (plus up to an additional 60 days if special circumstances require
an extension of the deadline for making a decision on appeal). The Claimant
will be notified in writing, within 60 days after the date that the appeal was
received by the Plan Administrator, if any extension is necessary. That notice
will state why the extension is required and the date by which the Plan
Administrator expects to make the decision on the appeal.

 

The decision on
the appeal will be provided to the Claimant in writing or electronically. If
the claim is denied on appeal, the decision will include:

 

17

 

(i)            the specific reason(s)
for the denial;

 

(ii)           the specific
provision(s) of the Plan on which the denial is based;

 

(iii)          a statement that the
Claimant is entitled to receive, upon request and free of charge, reasonable
access to, and copies of, all documents, records, and other information
relevant to the claim for benefits (as described above in Subsection 14(c));

 

(iv)          a statement describing
voluntary appeal procedures offered by the Plan, if any, and the Claimant’s
right to obtain further information about any such procedures; and

 

(v)           a statement of the
Claimant’s right to file a lawsuit under ERISA.

 

Subject to a
Claimant’s right to file a lawsuit under ERISA, the decision on appeal will be
final and binding on the Claimant, the Plan Administrator and all other
interested parties.

 

15.          Participant
Rights

 

As a participant in the
Plan, you are entitled to certain rights and protections under ERISA. ERISA
provides that all Plan participants shall be entitled to:

 

Receive
Information About Your Plan and Benefits

 

Examine, without charge,
at the Plan Administrator’s office and at other specified locations, such as
work sites and union halls, all documents governing the Plan, including
insurance contracts and collective bargaining agreements, and a copy of the
latest annual report (Form 5500 Series) filed by the Plan with the U.S.
Department of Labor and available at the Public Disclosure Room of the Employee
Benefits Security Administration.

 

Obtain, upon written
request to the Plan Administrator, copies of documents governing the operation
of the Plan, including insurance contracts and collective bargaining
agreements, and copies of the latest annual report (Form 5500 Series) and
updated summary plan description. The Plan Administrator may make a reasonable
charge for the copies.

 

Receive a summary of the
Plan’s annual financial report. The Plan Administrator is required by law to
furnish each participant with a copy of this summary annual report.

 

Prudent Actions by
Plan Fiduciaries

 

In addition to creating
rights for Plan participants, ERISA imposes duties upon the people who are
responsible for the operation of an employee benefit plan. The people who
operate your Plan, called “fiduciaries” of the Plan, have a duty to do so
prudently and in the interest of you and other Plan participants and
beneficiaries. No one, including your

 

18

 

employer, your union, or
any other person, may fire you or otherwise discriminate against you in any way
to prevent you from obtaining a benefit or exercising your rights under ERISA.

 

Enforce Your
Rights

 

If your claim for a
benefit is denied or ignored, in whole or in part, you have a right to know why
this was done, to obtain copies of documents relating to the decision without
charge, and to appeal any denial, all within certain time schedules. Under
ERISA, there are steps you can take to enforce the above rights. For instance,
if you request a copy of Plan documents or the latest annual report from the
Plan and do not receive them within 30 days, you may file suit in a federal
court. In such a case, the court may require the Plan Administrator to provide
the materials and pay you up to $110 a day until you receive the materials,
unless the materials were not sent because of reasons beyond the control of the
Plan Administrator. If you have a claim for benefits which is denied or
ignored, in whole or in part, you may file suit in a state or federal court
after you have exhausted all of the appeal procedures provided for in Section
14 of the Plan. If it should happen that Plan fiduciaries misuse the Plan’s
money, or if you are discriminated against for asserting your rights, you may
seek assistance from the U.S. Department of Labor, or you may file suit in a
federal court. The court will decide who should pay court costs and legal fees.
If you are successful, the court may order the person you have sued to pay
these costs and fees. If you lose, the court may order you to pay these costs
and fees, for example, if it finds your claim is frivolous.

 

Assistance with
Your Questions

 

If you have any questions
about the Plan, you should contact the Plan Administrator. If you have any
questions about this statement or about your rights under ERISA or if you need
assistance in obtaining documents from the Plan Administrator, you should
contact the nearest office of the Employee Benefits Security Administration,
U.S. Department of Labor, listed in your telephone directory, or the Division
of Technical Assistance and Inquiries, Employee Benefits Security
Administration, U.S. Department of Labor, 200 Constitution Avenue N.W.,
Washington, D.C. 20210. You may also obtain certain publications about your
rights and responsibilities under ERISA by calling the publications hotline of
the Employee Benefits Security Administration.

 

16.          Prior
Severance Plans

 

The Plan supersedes,
amends and restates all prior severance plans, practices and policies (other
than individual contracts providing for severance benefits) in effect with any
Employer, specifically including the Transocean Executive Severance Policy and
the GlobalSantaFe Severance Program for Shorebased Staff Personnel; provided, however, that the Transocean Executive Change of
Control Severance Benefit policy remains in effect and is not superseded. The
superseded severance plans, practices and policies are discontinued and
terminated with respect to all Affected Employees eligible for a benefit under
the Plan.

 

19

 

17.          Plan
Document Controls

 

In the event of any
inconsistency between the Plan document and any other communication regarding
the Plan, the Plan document as contained herein controls.

 

18.          Construction

 

Nothing in the Plan shall
be construed to amend any provision of any plan or policy of an Employer or any
Affiliate except as otherwise expressly noted herein. The Plan is not, and
shall not be deemed to create, any commitment by an Employer or any Affiliate
to continue any Employee’s employment. The captions of the Plan are not part of
the provisions of the Plan and shall have no force or effect. Whenever the
context requires, the masculine gender includes the feminine gender, and words
used in the singular or plural will include the other.

 

19.          Controlling
Law

 

The Plan is an employee
welfare benefit plan under ERISA. The Plan and the Waiver and Release will be
interpreted under ERISA and the laws of the State of Texas to the extent that
state law is applicable. Any controversy or dispute arising under or as a
result of the Plan will be subject to the exclusive jurisdiction of the U.S.
and will be brought in Houston, Harris County, Texas. As a condition to
participating in and receiving any benefits under the Plan, an Affected
Employee agrees to waive all of his rights to pleas regarding subject matter
jurisdiction, personal jurisdiction, or venue with respect to any matter(s) or
dispute(s) arising out of or connected with the Plan.

 

20.          General
Information

 

(a)           Plan Sponsor:

Transocean Inc.

Grand Cayman Office

70 Harbour Dr.

4th FL, Block B

George Town, KY

Cayman Islands

 

Postal Address

Transocean Inc.

Grand Cayman Office

P.O. Box 10342

Grand Cayman KYI-1003

Cayman Islands

 

Telephone number +1
345-745-4500

 

(b)           Employer
Identification Number of Plan Sponsor:  66-0582307.

 

(c)           Plan Number: 
515.

 

20

 

(d)           Plan Year:  The
plan year for reporting to governmental agencies and employees shall be the
calendar year.

 

(e)           Plan Administrator:  The Administrative Committee of Transocean,
or such person or entity as Transocean may thereafter designate from time to
time.

 

Transocean Inc.

Administrative Committee

c/o Transocean Offshore
Deepwater Drilling Inc.

Attn: Benefits Manager

4 Greenway Plaza

Houston, TX 77046

 

1-800-474-8352

 

The Plan Administrator is
responsible for the operation and administration of the Plan. The Plan
Administrator is authorized, in its discretion, to construe and interpret the
Plan, and its decisions shall be final and binding. Benefits under the Plan will
be paid only if the Plan Administrator decides, in its discretion, that the
applicant is entitled to them. The Plan Administrator shall make all reports
and disclosures required by law.

 

(f)            Agent for Service
of Legal Process:

 

Transocean Offshore Deepwater
Drilling Inc.

Attn: Manager HR -
Headquarters

4 Greenway Plaza

Houston, TX 77046

 

713-232-7500

 

(g)           Plan Duration:
Severance Protection Period.

 

(h)           Source of Benefits:  Payments
under the Plan shall be made from the general assets of the appropriate
Employers, as determined by the Plan Administrator.

 

21

 

Exhibit A

 

 

WAIVER AND RELEASE AGREEMENT

 

In exchange for the
payment and the other promises made by Transocean Offshore Deepwater Drilling
Inc. (“Transocean”) in this Waiver and Release Agreement (“Agreement”), I, NAME, on behalf of myself, my heirs, relations, successors,
executors, administrators, assigns, agents, representatives, attorneys, and
anyone acting on my behalf, promise and agree as follows:

 

I irrevocably and
unconditionally release, acquit, and forever discharge Transocean and
its predecessors, successors, parent and affiliated companies (collectively,
the “Transocean Group”), and its and their past and present officers,
directors, attorneys, insurers, agents, servants, suppliers, representatives,
employees, affiliates, subsidiaries, parent companies, partners, predecessors
and successors in interest, assigns and benefit plans (except with respect to
vested benefits under such plans), and any other persons or firms for whom
Transocean could be legally responsible (collectively, “Released Parties”),
from any and all claims, liabilities or causes of action, whether known or now
unknown to me, arising from or related in any way to my employment or
termination of my employment with Transocean and/or any of the Released Parties
and occurring through the date I sign this Agreement, as indicated below (the “Execution
Date”).

 

I acknowledge that this
Agreement is my knowing and voluntary waiver of all rights or claims arising on
or before the Execution Date. I understand and agree that my waiver includes,
but is not limited to, all waivable charges, complaints, claims, liabilities,
actions, suits, rights, demands, costs, losses, damages or debts of any nature,
including, but not limited to, claims arising under Title VII of the Civil
Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Texas
Commission on Human Rights Act; the Americans with Disabilities Act; the Age
Discrimination in Employment Act, as amended; the Older Workers Benefit
Protection Act; the Family and Medical Leave Act of 1993; the Texas Workers’
Compensation Act; the Texas Labor Code; the Employee Retirement Income Security
Act of 1974, as amended; all state and federal statutes and regulations; and
the common law, whether based in law or equity, in tort or contract. I further
acknowledge and agree that my waiver of rights or claims is in exchange for
valuable payments and other promises in addition to anything of value to which
I already am entitled.

 

I acknowledge and agree
that Transocean has no obligation to reemploy, rehire or recall me, and promise
that I shall not apply for re-employment with the Transocean Group.

 

22

 

I agree that in
connection with any existing or future administrative, civil or criminal legal
proceeding, arbitration, mediation or investigation brought by or against any
member of the Transocean Group, including any internal investigation, relating
to events which occurred during my employment or about which I may have
information, I will cooperate fully and devote such time as may be reasonably
required in the investigation, preparation, prosecution or defense of such
proceeding. This includes, but is not limited to, executing truthful
declarations or providing information and/or documents, offering and explaining
evidence, participating in discovery, and trial preparation and testimony, all
as may be deemed reasonably necessary or desirable by Transocean. For its part,
upon receipt of satisfactory documentation from me, Transocean shall reimburse
me promptly for my reasonable expenses incurred in connection with my
assistance and/or cooperation with respect to such proceedings.

 

I agree that I will not:

 

a.             Divulge or
appropriate for my own use or the use of others any confidential information or
trade secrets pertaining to the business of the Transocean Group that I
obtained or learned while employed by any member of the Transocean Group; or

 

b.             during the period
beginning on the Execution Date of this Agreement and ending two years
thereafter, solicit on my own behalf, or on behalf of any other person, firm or
company, the employment of any person employed by any member of the Transocean
Group.

 

I acknowledge and agree
that this Agreement does not in any way limit or diminish my existing
obligations to protect the confidential information, trade secrets and business
assets of the Transocean Group.

 

For my promises in this
Agreement, Transocean agrees to pay me $AMOUNT HERE,
less applicable taxes and withholdings (the “Amount”), and certain other
benefits (the “Additional Benefits”) described in the Transocean Special
Transition Severance Plan for Shore-Based Employees (the “Transition Plan”). I
understand that I will be paid the Amount in accordance with the terms of this
Agreement and the Transition Plan, either on a “lump sum” or a “salary
continuation” basis, whichever applies to me per the Transition Plan.

 

Provided that that I sign
this Agreement, return it to Transocean per the instructions below, do not
revoke it within the seven-day period immediately following the Execution Date
(the “Revocation Period”), and comply with its terms, the Agreement becomes
enforceable upon expiration of the Revocation Period.

 

I acknowledge and
understand that I am not entitled to the Amount or the Additional Benefits
except in exchange for this Agreement. Therefore, I will not be paid the Amount
or receive the Additional Benefits unless I execute, date and return this
Agreement to Transocean, do not revoke this Agreement within the Revocation
Period, and comply with its terms.

 

23

 

I warrant, acknowledge
and agree that:

 

a.             My acceptance of this
Agreement is completely voluntary;

 

b.             I have had the
opportunity to consider this Agreement for forty-five (45) days (or until insert 45 day date ), though I understand I may accept
sooner than 45 days if I choose;

 

c.             I am hereby being
advised in writing by Transocean to consult with an attorney regarding the
terms of this Agreement before accepting;

 

d.             if I accept this
Agreement, I have the Revocation Period to revoke my acceptance;

 

e.             this Agreement shall
become enforceable upon expiration of the Revocation Period so long as I have
not revoked my acceptance of the Agreement and have complied with its terms;

 

f.              I am receiving under
this Agreement consideration of value in addition to anything to which I
already am entitled;

 

g.             I have been informed
in writing in the attached Schedule A to this Agreement of:  (1) the unit of individuals considered for
termination and offered a payment and benefits package in exchange for a waiver
and release, (2) the eligibility factors for the offer, (3) the time limits
applicable, (4) the job titles and ages of all individuals eligible or selected
for the package, and (5) the ages of all individuals in the same job
classification or organizational unit who are not selected or eligible for the
payment and benefits package; and

 

h.             I do not waive any
claims or rights that may arise after the Execution Date of this Agreement.

 

I promise to keep the
terms and conditions of this Agreement strictly confidential and will
disclose them only to professional advisors or as required by law. This
commitment to confidentiality is essential to this Agreement, and I recognize
the right of Transocean to take whatever measures are necessary to enforce my
promise of confidentiality.

 

I acknowledge and agree
that I have carefully read this Agreement and I represent, warrant and promise
as follows:

 

a.             I understand this
Agreement is my release and waiver of all waivable claims, known and unknown,
past or present, which exist on or before the Execution Date;

 

b.             I have entered into
this Agreement in exchange for Transocean’s promises in this Agreement,
including to pay the Amount and provide the Additional Benefits;

 

24

 

c.             I am fully competent
to execute this Agreement, which I understand is a binding contract;

 

d.             I accept this
Agreement of my own free will, after having a reasonable period of time to
review, study and deliberate regarding its meaning and effect, and without
reliance on any representation of any kind or character not specifically
included in writing in this Agreement;

 

e.             I execute this
Agreement fully knowing its effect and voluntarily; and

 

f.              I understand that
Transocean is relying upon the truthfulness of the statements I make in this
Agreement, and I understand that Transocean would not enter into this Agreement
with me or pay me the Amount or provide the Additional Benefits if I did not
make each of the representations and promises contained in this Agreement.

 

This Agreement shall be
interpreted and construed in accordance with and shall be governed by the laws
of the State of Texas, notwithstanding any conflicts of law principles which
may refer to the laws of any other jurisdiction.

 

To accept this Agreement,
I understand that I must sign the Acceptance of Agreement (below) before a
notary public. I then must return the signed and notarized Agreement to Debbie Groff at Transocean no later than close of business
on insert 45 day date. The fully executed
Agreement should be delivered by hand to the Human Resources Department marked
to the attention of Debbie Groff or mailed to the following address:

 

Transocean Offshore
Deepwater Drilling Inc.

Attention:  Debbie Groff

P.O. Box 2765

Houston, Texas  77252-2765

 

This Agreement will not
be enforceable and no payment of the Amount or provision of Additional Benefits
will be made unless the above procedure is strictly followed. I understand that
if I have any questions concerning the procedure, I may call Debbie Groff at 713. 232.7650.

 

To revoke this Agreement,
I understand that I must provide written notice to Transocean, signed by me
before a notary public, stating my intention to revoke. Notice of my intention
to revoke must be delivered before the Revocation Period expires, and should be
delivered by hand to the Human Resources Department marked to the attention of
Debbie Groff or mailed to the address above. I understand that my revocation of
this Agreement will not be effective unless the above procedure is strictly
followed.

 

25

 

ACKNOWLEDGMENT
OF RECEIPT

 

This Agreement was given
to me on this       day of            ,
200  .

 

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee’s Signature

  

 

 

ACCEPTANCE
OF AGREEMENT BY COMPANY

 

Accepted and agreed to
this       day of             ,
200  .

 

TRANSOCEAN
OFFSHORE DEEPWATER DRILLING INC.

 

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

ACCEPTANCE
OF AGREEMENT BY EMPLOYEE

 

This Acceptance must be
signed and dated no later than insert 45 day date.

 

I knowingly and
voluntarily choose to accept this Waiver and Release Agreement and agree to be
bound by it.

 

Accepted this      day
of             ,
200  .

 

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee’s Signature

  

 

26

 

NOTARIAL
ACKNOWLEDGMENT

 

	
  STATE OF

  	
   

  	
  §

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  §

  
	
   

  	
   

  	
   

  
	
  COUNTY/PARISH OF

  	
   

  	
  §

  

 

BEFORE ME, the
undersigned, on this day personally appeared                   ,
known to me to be the person whose name is subscribed to the foregoing
instrument, and acknowledged to me that such person executed the same for the
purposes and consideration therein expressed.

 

GIVEN UNDER MY HAND AND
SEAL OF OFFICE this        day of           ,
200  .

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notary Public in and
  for the State of

  

 

27

 

Schedule A

 

(A) The decisional unit
is all [describe level] employees in the [Name] Department.

 

(B) All [describe level] employees in the [Name] Department
were eligible to be considered for termination of employment. [Number] persons were selected for employment termination
based on individual performance, individual contribution and overall
departmental needs.

 

(C) [Number]
employees were selected for employment termination and are being offered a
payment and benefits package in exchange for a waiver and release agreement. To
accept the package, the terminated employee must sign and return the waiver and
release agreement to Debbie Groff
within 45 days (i.e., on or before [DATE]). After a
signed and notarized copy of the waiver and release indicating acceptance of
the offer has been returned to Debbie Groff,
the employee will then have 7 days to revoke the waiver and release agreement
and must do so by delivering a written statement of revocation to Debbie Groff which must be received at Transocean no later
than the close of business on the 7th day after acceptance.

 

(D) The following is a
listing of the ages and job titles of [describe level]
employees in the [Name] Department who were
released from employment and received the offer of a payment and benefits
package in exchange for signing a waiver and release agreement and a listing of
the ages of those [describe level]
employees in the [NAME] department who did not.

 

 

	
  [Describe level] Job Titles: [Name]

  Department:

  	
   

  	
  Ages of persons

  released:

  	
   

  	
  Ages of persons

  retained:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

28

 

Exhibit B

 

 

WAIVER AND RELEASE AGREEMENT

 

In exchange for the
payment and the other promises made by Transocean Offshore Deepwater Drilling
Inc. (“Transocean”) in this Waiver and Release Agreement (“Agreement”), I, NAME, on behalf of myself, my heirs, relations, successors,
executors, administrators, assigns, agents, representatives, attorneys, and
anyone acting on my behalf, promise and agree as follows:

 

I irrevocably and
unconditionally release, acquit, and forever discharge Transocean and
its predecessors, successors, parent and affiliated companies (collectively,
the “Transocean Group”), and its and their past and present officers,
directors, attorneys, insurers, agents, servants, suppliers, representatives,
employees, affiliates, subsidiaries, parent companies, partners, predecessors
and successors in interest, assigns and benefit plans (except with respect to
vested benefits under such plans), and any other persons or firms for whom
Transocean could be legally responsible (collectively, “Released Parties”),
from any and all claims, liabilities or causes of action, whether known or now
unknown to me, arising from or related in any way to my employment or
termination of my employment with Transocean and/or any of the Released Parties
and occurring through the date I sign this Agreement, as indicated below (the “Execution
Date”).

 

I acknowledge that this
Agreement is my knowing and voluntary waiver of all rights or claims arising on
or before the Execution Date. I understand and agree that my waiver includes,
but is not limited to, all waivable charges, complaints, claims, liabilities,
actions, suits, rights, demands, costs, losses, damages or debts of any nature,
including, but not limited to, claims arising under Title VII of the Civil
Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Texas
Commission on Human Rights Act; the Americans with Disabilities Act; the Age
Discrimination in Employment Act, as amended; the Older Workers Benefit
Protection Act; the Family and Medical Leave Act of 1993; the Texas Workers’
Compensation Act; the Texas Labor Code; the Employee Retirement Income Security
Act of 1974, as amended; all state and federal statutes and regulations; and
the common law, whether based in law or equity, in tort or contract. I further
acknowledge and agree that my waiver of rights or claims is in exchange for
valuable payments and other promises in addition to anything of value to which
I already am entitled.

 

I acknowledge and agree
that Transocean has no obligation to reemploy, rehire or recall me, and promise
that I shall not apply for re-employment with the Transocean Group.

 

I agree that in
connection with any existing or future administrative, civil or criminal legal
proceeding, arbitration, mediation or investigation brought by or against any
member of the Transocean Group, including any internal investigation, relating
to events which occurred

 

29

 

during my employment or
about which I may have information, I will cooperate fully and devote such time
as may be reasonably required in the investigation, preparation, prosecution or
defense of such proceeding. This includes, but is not limited to, executing
truthful declarations or providing information and/or documents, offering and
explaining evidence, participating in discovery, and trial preparation and
testimony, all as may be deemed reasonably necessary or desirable by Transocean.
For its part, upon receipt of satisfactory documentation from me, Transocean
shall reimburse me promptly for my reasonable expenses incurred in connection
with my assistance and/or cooperation with respect to such proceedings.

 

I agree that I will not:

 

a.             Divulge or
appropriate for my own use or the use of others any confidential information or
trade secrets pertaining to the business of the Transocean Group that I
obtained or learned while employed by any member of the Transocean Group; or

 

b.             during the period
beginning on the Execution Date of this Agreement and ending two years
thereafter, solicit on my own behalf, or on behalf of any other person, firm or
company, the employment of any person employed by any member of the Transocean
Group.

 

I acknowledge and agree
that this Agreement does not in any way limit or diminish my existing
obligations to protect the confidential information, trade secrets and business
assets of the Transocean Group.

 

For my promises in this
Agreement, Transocean agrees to pay me $AMOUNT HERE,
less applicable taxes and withholdings (the “Amount”), and certain other
benefits (the “Additional Benefits”) described in the Transocean Special
Transition Severance Plan for Shore-Based Employees (the “Transition Plan”). I
understand that I will be paid the Amount in accordance with the terms of this
Agreement and the Transition Plan, either on a “lump sum” or a “salary
continuation” basis, whichever applies to me per the Transition Plan.

 

Provided that that I sign
this Agreement, return it to Transocean per the instructions below, do not
revoke it within the seven-day period immediately following the Execution Date
(the “Revocation Period”), and comply with its terms, the Agreement becomes
enforceable upon expiration of the Revocation Period.

 

I acknowledge and
understand that I am not entitled to the Amount or the Additional Benefits
except in exchange for this Agreement. Therefore, I will not be paid the Amount
or receive the Additional Benefits unless I execute, date and return this
Agreement to Transocean, do not revoke this Agreement within the Revocation
Period, and comply with its terms.

 

I warrant, acknowledge
and agree that:

 

a.             My acceptance of this
Agreement is completely voluntary;

 

30

 

b.             I have had the
opportunity to consider this Agreement for twenty-one (21) days (or until insert 21 day date), though I understand I may accept sooner
than 21 days if I choose;

 

c.             I am hereby being
advised in writing by Transocean to consult with an attorney regarding the
terms of this Agreement before accepting;

 

d.             if I accept this
Agreement, I have the Revocation Period to revoke my acceptance;

 

e.             this Agreement shall
become enforceable upon expiration of the Revocation Period so long as I have
not revoked my acceptance of the Agreement and have complied with its terms;

 

f.              I am receiving under
this Agreement consideration of value in addition to anything to which I
already am entitled; and

 

g.             I do not waive any
claims or rights that may arise after the Execution Date of this Agreement.

 

I promise to keep the
terms and conditions of this Agreement strictly confidential and will
disclose them only to professional advisors or as required by law. This
commitment to confidentiality is essential to this Agreement, and I recognize
the right of Transocean to take whatever measures are necessary to enforce my
promise of confidentiality.

 

I acknowledge and agree
that I have carefully read this Agreement and I represent, warrant and promise
as follows:

 

a.             I understand this
Agreement is my release and waiver of all waivable claims, known and unknown,
past or present, which exist on or before the Execution Date;

 

b.             I have entered into
this Agreement in exchange for Transocean’s promises in this Agreement,
including to pay the Amount and provide the Additional Benefits;

 

c.             I am fully competent
to execute this Agreement, which I understand is a binding contract;

 

d.             I accept this
Agreement of my own free will, after having a reasonable period of time to
review, study and deliberate regarding its meaning and effect, and without
reliance on any representation of any kind or character not specifically
included in writing in this Agreement;

 

e.             I execute this
Agreement fully knowing its effect and voluntarily; and

 

f.              I understand that
Transocean is relying upon the truthfulness of the statements I make in this
Agreement, and I understand that Transocean would not enter

 

31

 

into this Agreement with
me or pay me the Amount or provide the Additional Benefits if I did not make
each of the representations and promises contained in this Agreement.

 

This Agreement shall be
interpreted and construed in accordance with and shall be governed by the laws
of the State of Texas, notwithstanding any conflicts of law principles which
may refer to the laws of any other jurisdiction.

 

To accept this Agreement,
I understand that I must sign the Acceptance of Agreement (below) before a
notary public. I then must return the signed and notarized Agreement to Debbie Groff at Transocean no later than close of business
on insert 21 day date. The fully executed
Agreement should be delivered by hand to the Human Resources Department marked
to the attention of Debbie Groff or mailed to the following address:

 

Transocean Offshore
Deepwater Drilling Inc.

Attention:  Debbie Groff

P.O. Box 2765

Houston, Texas  77252-2765

 

This Agreement will not
be enforceable and no payment of the Amount or provision of Additional Benefits
will be made unless the above procedure is strictly followed. I understand that
if I have any questions concerning the procedure, I may call Debbie Groff at 713. 232.7650.

 

To revoke this Agreement,
I understand that I must provide written notice to Transocean, signed by me
before a notary public, stating my intention to revoke. Notice of my intention
to revoke must be delivered before the Revocation Period expires, and should be
delivered by hand to the Human Resources Department marked to the attention of
Debbie Groff or mailed to the address above. I understand that my revocation of
this Agreement will not be effective unless the above procedure is strictly
followed.

 

ACKNOWLEDGMENT
OF RECEIPT

 

This Agreement was given
to me on this       day of           ,
200  .

 

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee’s Signature

  

 

32

 

ACCEPTANCE
OF AGREEMENT BY COMPANY

 

Accepted and agreed to
this       day of           ,
200  .

 

TRANSOCEAN
OFFSHORE DEEPWATER DRILLING INC.

 

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

 

ACCEPTANCE
OF AGREEMENT BY EMPLOYEE

 

This Acceptance must be
signed and dated no later than insert 21 day date.

 

I knowingly and
voluntarily choose to accept this Waiver and Release Agreement and agree to be
bound by it.

 

Accepted this     
day of            , 200  .

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee’s Signature

  

 

33

 

NOTARIAL
ACKNOWLEDGMENT

 

	
  STATE OF

  	
   

  	
  §

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  §

  
	
   

  	
   

  	
   

  
	
  COUNTY/PARISH OF

  	
   

  	
  §

  

 

BEFORE ME, the
undersigned, on this day personally appeared                  ,
known to me to be the person whose name is subscribed to the foregoing
instrument, and acknowledged to me that such person executed the same for the
purposes and consideration therein expressed.

 

GIVEN UNDER MY HAND AND
SEAL OF OFFICE this       day of           ,
200  .

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notary Public in and
  for the State of

  

 

34Exhibit
10.11

 

Transocean U.S.
Supplemental Retirement Benefit Plan

 

(As Amended
and Restated Effective as of November 27, 2007)

 

 

Contents

 

	
  Article 1.

  	
  The Plan

  	
  1

  
	
  1.1

  	
  Establishment
  and Amendment of the Plan

  	
  1

  
	
  1.2

  	
  Purpose

  	
  1

  
	
  1.3

  	
  Applicability
  of the Plan

  	
  1

  
	
   

  	
   

  	
   

  
	
  Article 2.

  	
  Definitions
  and Construction

  	
  2

  
	
  2.1

  	
  Definitions

  	
  2

  
	
  2.2

  	
  Gender and
  Number; Headings

  	
  4

  
	
   

  	
   

  	
   

  
	
  Article 3.

  	
  Restoration
  of Benefits Reduced by Code Section 401(a)(17) or 415

  	
  5

  
	
  3.1

  	
  Eligibility

  	
  5

  
	
  3.2

  	
  Participation

  	
  5

  
	
  3.3

  	
  Benefits

  	
  5

  
	
   

  	
   

  	
   

  
	
  Article 4.

  	
  Time and
  Form of Payment

  	
  8

  
	
  4.1

  	
  Form of
  Payment and Payment Date

  	
  8

  
	
  4.2

  	
  Death
  Benefits

  	
  8

  
	
  4.3

  	
  Vesting

  	
  8

  
	
  4.4

  	
  Change of
  Control

  	
  8

  
	
   

  	
   

  	
   

  
	
  Article 5.

  	
  Administration

  	
  11

  
	
  5.1

  	
  Administration
  and Interpretation

  	
  11

  
	
  5.2

  	
  Expenses

  	
  11

  
	
  5.3

  	
  Indemnification
  and Exculpation

  	
  11

  
	
  5.4

  	
  Amendment
  and Termination

  	
  11

  
	
  5.5

  	
  Not an
  Employment Agreement

  	
  12

  
	
  5.6

  	
  Funding

  	
  12

  
	
  5.7

  	
  Severability

  	
  12

  
	
  5.8

  	
  Assignment
  of Benefits

  	
  12

  
	
  5.9

  	
  Tax
  Withholding

  	
  12

  
	
  5.10

  	
  Effect on
  Other Benefit Plans

  	
  12

  
	
  5.11

  	
  Applicable
  Law

  	
  13

  
	
  5.12

  	
  Scope

  	
  13

  
	
  5.13

  	
  Code Section
  409A Compliance

  	
  13

  
	
  5.14

  	
  Specified
  Employees

  	
  13

  
	
  5.15

  	
  Incompetence

  	
  13

  
	
  5.16

  	
  Binding on
  Employer, Eligible Participants and Their Successors

  	
  14

  
	
   

  	
   

  	
   

  
	
  Article 6.

  	
  Adoption
  Procedure

  	
  14

  
	
  6.1

  	
  Adoption
  Procedure

  	
  14

  
	
  6.2

  	
  Withdrawal
  of Participating Employer

  	
  14

  
								

 

i

 

Article 1.                                            The Plan

 

1.1                               Establishment and Amendment of
the Plan.

 

Transocean
Inc. (the “Company”) previously maintained an unfunded supplemental benefit
plan known as the “Transocean Offshore Inc. Supplemental Benefit Plan,”
established originally effective as of July 1, 1993, and as amended and
restated effective as of July 1, 1998 (the “Original Plan”). The Company, as a
successor to the entities previously sponsoring the Original Plan, amended and
restated that portion of the Original Plan providing for “Excess Retirement
Plan Benefits” (as described in the Original Plan) effective as of January 1,
2004, and renamed that portion of the Original Plan as the “Transocean U.S.
Supplemental Retirement Plan” (the “Prior Plan”). The Company hereby further
amends and restates the Prior Plan, effective November 27, 2007  (the “Effective Date”) in the form set forth herein (the “Plan”),
to comply with the requirements of Code Section 409A and to make certain
changes in accordance with the Agreement and Plan of Merger by and among the
Company, GlobalSantaFe Corporation, and Transocean Worldwide, Inc., dated as of
July 21, 2007 (the “Merger Agreement”).

 

1.2                               Purpose.

 

(a)                                  Purpose of the Plan. The Plan has been
established and is maintained for the primary purpose of providing Eligible
Participants who are eligible to receive benefit payments under the “Transocean
U.S. Retirement Plan,” as amended effective November 27, 2007, and thereafter amended  (the “Retirement Plan”), such portion of
such benefit payments as would have been payable to such Eligible Participants
under the Retirement Plan if the maximum annual compensation limitations under
Code Section 401(a)(17) and maximum annual benefit limitations under Code
Section 415 had not been applied to such benefit payments, as well as certain
benefits payable in accordance with the Merger Agreement.

 

(b)                                 ERISA Status. The Plan is intended to
qualify for the exemptions provided under Title I of ERISA for plans that are
not qualified under Code Section 401(a) and that are maintained primarily to
provide deferred compensation for a select group of management or highly
compensated employees.

 

1.3                               Applicability of the Plan.

 

The provisions
of the Plan shall be applicable only to or with respect to those Eligible Participants
who are eligible to receive a benefit under the Retirement Plan on or after November 27,
2007, and who are Eligible Participants under the Plan on or after such date.

 

1

 

Article 2.                                            Definitions and
Construction

 

2.1                               Definitions.

 

All terms used
in the Plan shall have the same meanings assigned to them under the provisions
of the Retirement Plan, unless otherwise qualified by the context hereof. Notwithstanding
the prior sentence, the following terms shall have the meanings set forth
below, unless their context clearly indicates to the contrary:

 

(a)                                  “Additional Service Period” means, with
respect to any Eligible Participant who has a Termination of Employment on or
before November 27, 2009 and is eligible for a benefit under Section 4.7 of the
Retirement Plan, or who would have been eligible for such benefit if Appendix A
of the Retirement Plan had not specifically excluded the Participant from receiving
the benefit thereunder and who received a severance payment, whether in the
form of salary and/or bonus continuation payments or a lump sum or sums, the
salary and/or bonus continuation period or, in the case of a lump sum or sums,
the period with respect to which the lump sum or sums are deemed paid pursuant
to the definitions of Earnings contained in the Plan.

 

(b)                                 “Applicable Retirement Plan” means the
Retirement Plan as in effect on the date of the Participant’s Termination of
Employment.

 

(c)                                  “Code” means the Internal Revenue Code of
1986 and the regulations issued thereunder, as amended from time to time. Each
Code reference in the Plan shall include reference to any comparable or
succeeding statutory provision which amends, supplements, or replaces such Code
reference.

 

(d)                                 “Earnings” means the same as set forth in
the Retirement Plan, only without regard to the limitations imposed by Section
401(a)(17) of the Code. Additionally, with respect to any Eligible Participant
who has a Termination of Employment on or before November 27, 2009 and is
eligible for a benefit under Section 4.7 of the Retirement Plan, or who would
have been eligible for such benefit if Appendix A of the Retirement Plan had
not specifically excluded the Participant from receiving the benefit thereunder
and who received a severance payment, “Earnings” shall include severance
payments based on a multiple or any percentage of salary made as salary
continuation payments or in a lump sum or sums. In the event such a severance
payment is paid in a lump sum or sums, the salary amount shall be deemed to
accrue over the period of time it would normally have been paid had the
Participant’s salary at the time of termination continued until the severance
payments were exhausted.

 

(e)                                  “Eligible Participant” means an Employee of
an Employer who (i) is a Participant under the Retirement Plan and (ii) is
designated as eligible for participation in the Plan by the Board as being
among a select group of management or highly compensated employees and also
satisfying the requirements of Article 3.

 

(f)                                    “Employer” means the Company and each other
Employing Company who is a participating employer under the Retirement Plan and
who is a participating employer under the Plan as provided in Article 6.

 

2

 

(g)                                 “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended from time to time.

 

(h)                                 “Lump-Sum Equivalent” means with respect to
any benefit hereunder, a lump-sum payment equal in value at date of
determination to such benefit when determined actuarially, based upon the
mortality table set forth in the Applicable Retirement Plan and the interest
rate equal to the yield on a new 7-12 year AA-rated general obligation
tax-exempt bond as determined by Merrill Lynch & Co. (or its affiliates)
and published in The Wall Street Journal. An annual interest rate is to be
determined as the average of the daily yields for November of the Plan Year
preceding the Plan Year in which occurs the proposed date of payment; in such
case, the stability period for such applicable interest rate shall be the Plan
Year. In the event that age is increased by a salary continuation period or an
Additional Service Period (“imputed years”), the lump sum payment will be discounted
by the number of imputed years (including partial years) from the date of
determination to the date of payment using interest only at the interest rate specified
in the foregoing provisions of this definition. For purposes of Section 3.3(f) herein,
the date of determination is the day after the end of the Additional Service
Period. Further, (i) in the event an Eligible Participant is under age 55 on
the date of determination, the Lump-Sum Equivalent shall be based on the
present value of the Normal Retirement Benefit and (ii) in the event an
Eligible Participant is age 55 or older at the date of determination, the
Lump-Sum Equivalent shall be based on the present value of an immediate
benefit.

 

(i)                                     “Maximum Benefit Limits” means the maximum
benefit limitations as in effect under Code Section 415, as such limitations
are adjusted or changed from time to time in accordance with the adjustment
provisions of Code Section 415, or as a result of changes to the provisions in
Code Section 415.

 

(j)                                     “Maximum Compensation Limits” means the
maximum annual compensation limitations as in effect under Code Section
401(a)(17), as such limitations are adjusted or changed from time to time in
accordance with the adjustment provisions of Code Section 401(a)(17), or as a
result of changes to the provisions in Code Section 401(a)(17).

 

(k)                                  “Participant” means an individual who is a “Participant”
under the Retirement Plan and who maintains such status at any relevant date.

 

(l)                                     “Plan” means the “Transocean U.S.
Supplemental Retirement Benefit Plan,” as amended and restated effective as of
November 27, 2007, as set forth in this document and as the same may be amended
from time to time thereafter.

 

(m)                               “Retirement Plan” means the “Transocean
U.S. Retirement Plan,” as amended effective November 27, 2007, and as the same
may be amended from time to time thereafter.

 

(n)                                 “Termination of Employment” means “separation
from service,” as such term is defined in Section 1.409A-1(h) of the U.S.
Treasury Regulations, with the Company or an Employer for any reason other than
a transfer between Employers.

 

(o)                                 “Window Benefit Participant” means an
Eligible Participant who is eligible for a window benefit under Section 4.7 of
the Applicable Retirement Plan.

 

3

 

(p)                                 “Window Excluded Participant” means an
Eligible Participant who would have been eligible for a window benefit under
Section 4.7 of the Applicable Retirement Plan had he not been specifically
excluded pursuant to Appendix A of the Applicable Retirement Plan.

 

2.2                               Gender and Number; Headings.

 

Except when
otherwise indicated by the context, any masculine terminology when used in the
Plan shall also include the feminine gender, and the definition of any term in
the singular shall also include the plural. Headings of Articles and Sections
herein are included solely for convenience, and if there is any conflict
between such headings and the text of the Plan, the text shall control.

 

4

 

Article 3.                                            Restoration of
Benefits Reduced by Code Section 401(a)(17) or 415

 

3.1                               Eligibility.

 

The Board shall,
in its sole discretion, determine and designate the key management employees of
each participating Employer who are to be Eligible Participants under the Plan;
provided, however, that any employee so designated must meet the criteria for an
Eligible Participant set forth in Section 2.1(e). Such designations may be
based on participation criteria established by the Board  from
time to time, which criteria shall be consistent with the classification of the
Plan, as described in Section 1.2(b). Such criteria shall include a requirement
that the designated individual is expected to have his benefits under the
Retirement Plan subject to the Maximum Benefit Limits or the Maximum
Compensation Limits and that the individual is a member of a select group of
management or highly compensated employees (as those terms are set forth in
Section 201(2) of ERISA). The Board may terminate the “Eligible Participant”
status of any designated employee at any time. The Board  may
establish such procedures as it deems appropriate for notifying employees of
their status as Eligible Participants under the Plan.

 

3.2                               Participation.

 

A key
management employee as described in Section 3.1 shall become an Eligible
Participant under the Plan on the first date on which he is designated as an
Eligible Participant eligible to receive any benefits provided under the Plan. Such
Eligible Participant shall thereafter remain an Eligible Participant under the
Plan so long as he continues to meet the eligibility requirements of Section
2.1(e). In addition, an Eligible Participant who ceases to be an Eligible
Participant by reason of termination, transfer of employment or other loss of
Eligible Participant status shall continue as an Eligible Participant with
respect to any benefit he is eligible to receive under the Plan at the time of
such termination, transfer or loss of status.

 

3.3                               Benefits.

 

(a)                                  Termination of Employment on or after Normal Retirement
Age; In General. Upon an Eligible Participant’s Termination of
Employment after reaching Normal Retirement Age, the pension restoration
benefit payable under the Plan to such Eligible Participant shall be equal to
the Lump-Sum Equivalent of the difference between the monthly annuity amount in
(1) and the monthly annuity amount in (2) where—

 

(1)                                  is
the monthly annuity amount of such benefit that would have been payable under
the Retirement Plan to such Eligible Participant if the provisions of the Retirement
Plan were administered without regard to the Maximum Benefit Limits and the Maximum
Compensation Limits; and

 

(2)                                  is
the monthly annuity amount of such benefit payable to such Eligible Participant
under the Retirement Plan.

 

(b)                                 Inclusion in Earnings of Certain Prior Deferred
Compensation. In applying the foregoing provisions of Section 3.3(a),
the calculation in Section 3.3(a)(1) above shall also recognize as part of the
Eligible Participant’s Earnings any amounts that the Eligible

 

5

 

Participant deferred under a non-qualified
deferred compensation program maintained by his Employer for periods prior to
January 1, 2004.

 

(c)                                  Limitation. The amount in Section 3.3(a)
will be subject to limits described in Article 4.

 

(d)                                 Supplementation of Retirement Plan Benefits. Benefits
under this Article 3 will be paid only to supplement benefits actually payable
from the Retirement Plan.

 

(e)                                  Termination of Employment  Prior to Normal Retirement Age. If an
Eligible Participant’s Termination of Employment occurs prior to his Normal
Retirement Age, the pension restoration benefit shall be calculated as
described in Sections (a) through (d) above, but shall also then be reduced
using the same adjustment factors and/or actuarial equivalence factors and
assumptions as are applicable for calculations of benefits commencing prior to
Normal Retirement Age under the Retirement Plan. Under the Plan, the benefit
payable to an Eligible Participant prior to his Normal Retirement Age shall be
equal to the Lump-Sum Equivalent of this reduced amount, after all appropriate
calculations.

 

(f)                                    Window Benefit. For Window Benefit
Participants, the benefit described in this Section 3.3(f) shall equal the Lump-Sum
Equivalent of the excess of (1) over (2) below:

 

(1)                                  the
monthly benefit for the Window Benefit Participant calculated under the
Applicable Retirement Plan using the Window Benefit Participant’s Earnings
without regard to the limitations of Code Section 401(a)(17) and assuming that such
Participant remained employed through the end of the Additional Service Period
and commenced his Retirement Plan benefit at that time (or, if not eligible for
early or normal retirement under the Applicable Retirement Plan at the end of
the Additional Service Period, assuming such Participant had commenced his
benefit under the Applicable Retirement Plan on his Normal Retirement Date (as
defined in the Applicable Retirement Plan; over

 

(2)                                  the
monthly benefit calculated and payable under the Applicable Retirement Plan
assuming the Window Benefit Participant remained employed through the end of
the Additional Service Period and commenced payment of his Retirement Plan benefit
at that time (or, if not eligible for early or normal retirement under the Applicable
Retirement Plan at the end of the Additional Service Period, assuming such Participant
had commenced his benefit under the Applicable Retirement Plan on his Normal
Retirement Date (as defined in the Applicable Retirement Plan)).

 

For Window
Excluded Participants, the benefit described in this Section 3.3(f) shall equal
the Lump-Sum Equivalent of the excess of (3) over (4) below:

 

(3)                                  the
monthly benefit for the Window Excluded Participant calculated under the
Applicable Retirement Plan using the

 

6

 

Window
Excluded Participant’s Earnings without regard to the limitations of Code Section
401(a)(17) and assuming that such Participant remained employed through the end
of the Additional Service Period and commenced payment of his Retirement Plan benefit
at that time (or, if not eligible for early or normal retirement under the Applicable
Retirement Plan at the end of the Additional Service Period, assuming such Participant
had commenced his benefit under the Applicable Retirement Plan on his Normal
Retirement Date (as defined in the Applicable Retirement Plan));over

 

(4)                                  the
monthly benefit calculated and payable under the Applicable Retirement Plan
assuming the Window Excluded Participant terminated employment on the date of
his actual Termination of Employment and commenced payment of his Retirement
Plan benefit after the expiration of the Additional Service Period (or, if not
eligible to commence payment under the Applicable Retirement Plan at the end of
the Additional Service Period, assuming such Participant had commenced his
benefit under the Applicable Retirement Plan on his Normal Retirement Date (as
defined in the Applicable Retirement Plan)).

 

For purposes
of this Section 3.3(f), a Participant’s Final-Average Social Security Earnings
(as defined in the Applicable Retirement Plan) are projected to increase during
the Additional Service Period using an inflation assumption of three percent. Additionally,
no Eligible Participant shall receive an amount under this Section 3.3(f) that
is less than he would otherwise receive under the terms of the Plan absent this
Section 3.3(f).

 

7

 

Article 4.                                            Time and Form
of Payment

 

4.1                               Form of Payment and Payment
Date.

 

Subject to the
provisions of Section 5.14, the benefits payable under the Plan shall always be
paid to an Eligible Participant in the form of a cash lump-sum within 90 days
following an Eligible Participant’s Termination of Employment. The actuarial
assumptions for computing the lump-sum amount shall be the same actuarial
assumptions as those used in computing the Lump-Sum Equivalent under the Plan. Payment
of the Lump-Sum Equivalent shall be in full discharge of the Employer’s
obligations under the Plan to the eligible recipient of such benefits.

 

4.2                               Death Benefits.

 

(a)                                  In General. It is the intent of the Plan
that death benefits or Survivor Benefits as described in Article 7 of the
Retirement Plan be payable under the Plan to the same eligible individuals as
described in Article 3 of the Plan, and as further described in this Section 4.2.
Notwithstanding any provisions of the Retirement Plan to the contrary, the form
of payment for such death or Survivor Benefits shall always be the Lump-Sum
Equivalent of the monthly pension restoration benefit and the time of payment
shall always be within 90 days after the later of the Eligible Participant’s Termination
of Employment or death.

 

(b)                                 Lump-Sum Form of Payment. The survivor
entitled to the Survivor Benefit as a result of the Eligible Participant’s
death shall always be paid in the form of a cash lump-sum. The monthly pension
restoration annuity benefit shall be calculated under the applicable provisions
of the Retirement Plan, using the calculation methodology as described in
Section 3.3. This benefit will then be converted to its Lump-Sum Equivalent.

 

(c)                                  Other Limitations. The calculation of the Survivor
Benefits as described in the foregoing provisions of this Section 4.2 shall be
made by limiting the Eligible Participant’s Credited Service to not more than
30 years.

 

4.3                               Vesting.

 

An Eligible
Participant shall become vested in the benefit payable under the Plan at the
same time that he becomes vested under the Retirement Plan.

 

4.4                               Change of Control

 

(a)                                  Change
of Control Event. Notwithstanding the foregoing provisions of this
Article 4 or other provisions of the Plan, in the case of a “change of
control” as defined in Section 4.4(b), an Eligible Participant under the Plan
shall (i) become 100% vested in a benefit under this Plan irrespective of
whether he is entitled to a benefit under the Retirement Plan, and (ii) such
Eligible Participant shall be eligible to receive the payment of such benefit
in the form of a lump sum payment as soon as administratively practicable
following the determination of such “change in control.” In calculating an
Eligible Participant’s benefit under this Section 4.4, such benefit shall be
calculated on the assumption that such Eligible Participant is eligible for a
monthly benefit payment under the Retirement Plan payable at the same time,
even if such Eligible Participant is not 

 

8

 

eligible for a benefit under the Retirement
Plan or such a benefit payable at such same time.

 

(b)                                       Definition.
For purposes of this Section 4.4, a “change of control” means—

 

(1)                      The
acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of
beneficial ownership (within the meaning of Rule 13d­3 promulgated under
the Exchange Act) of 20% or more of either (A) the then outstanding ordinary
shares of the Company (the “Outstanding Company Ordinary Shares”) or (B) the
combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that for purposes of this
subsection (1), the following acquisitions shall not constitute a Change
of Control: (C) any acquisition directly from the Company, (D) any
acquisition by the Company, (E) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Company or any
corporation or other entity controlled by the Company or (F) any acquisition by
any corporation or other entity pursuant to a transaction which complies with
clauses (A), (B) and (C) of subsection (3) of this Section 4.5;
or

 

(2)                      Individuals
who, as of the date hereof, constitute the Board of the Company (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board of
the Company; provided, however, that for purposes of this Section 4.5 any
individual becoming a director subsequent to the date hereof whose election, or
nomination for election by the Company’s shareholders, was approved by a vote
of at least a majority of the directors then comprising the Incumbent Board
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
threatened solicitation of proxies or consents by or on behalf of a Person other
than the Board of the Company; or

 

(3)                      Consummation
of a scheme of arrangement, reorganization, merger or consolidation or sale or
other disposition of all or substantially all of the assets of the Company (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 Company Ordinary Shares and
Outstanding Company Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of,
respectively, the then outstanding ordinary shares or shares of common stock
and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, 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 the Company or all or substantially all of the Company’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

 

9

 

the Outstanding Company Ordinary Shares and
Outstanding Company Voting Securities, as the case may be, (B) no Person
(excluding any corporation or other entity resulting from such Business
Combination or any employee benefit plan (or related trust) of the Company or
such corporation or other entity resulting from such Business Combination)
beneficially owns, directly or indirectly, 20% or more of, respectively, the
then outstanding ordinary shares or shares of common stock of the corporation
or other entity resulting from such Business Combination or the combined voting
power of the then outstanding voting securities of such corporation or other
entity 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 resulting from such Business Combination were
members of the Incumbent Board at the time of the action of the Board of the
Company providing for such Business Combination; or

 

(4)                      Approval by
the shareholders of the Company of a complete liquidation or dissolution of the
Company.

 

10

 

Article 5.                                            Administration

 

5.1                               Administration and
Interpretation.

 

The Plan shall
be administered by the Administrative Committee appointed pursuant to the terms
of the Retirement Plan. The Administrative Committee shall administer the Plan in
accordance with its terms, except (i) in the event the Administrative Committee
determines an adjustment is necessary pursuant to Section 5.13 of the Plan; and
(ii) the Plan shall be administered as an unfunded plan which is not intended
to meet the qualification requirements of Code Section 401(a). The
Administrative Committee shall have the same rights and authority granted to it
under the Retirement Plan, which shall include the full power and authority to
interpret, construe and administer the Plan. The Administrative Committee shall
establish and maintain such accounts or records as the Administrative Committee
may from time to time consider necessary. Members of the Administrative
Committee shall not participate in any action or determination regarding their
own benefits under the Plan. The determination of the Administrative Committee
as to any disputed questions arising under the Plan, including questions of
construction and interpretation shall be final, binding, and conclusive upon
all persons.

 

5.2                               Expenses.

 

The expenses
of administering the Plan shall be borne by the Employers in the proportions
determined by the Administrative Committee.

 

5.3                               Indemnification and Exculpation.

 

The members of
the Administrative Committee, its agents, and officers, directors, and
employees of the Company or any other Employer shall be indemnified and held
harmless by the Employer against and from any and all loss, cost, liability, or
expense that may be imposed upon or reasonably incurred by them in connection
with or resulting from any claim, action, suit, or proceeding to which they may
be a party or in which they may be involved by reason of any action taken or
failure to act under the Plan and against and from any and all amounts paid by
them in settlement (with the Company’s written approval) or paid by them in
satisfaction of a judgment in any such action, suit, or proceeding. The foregoing
provision shall not be applicable to any person if the loss, cost, liability,
or expense is due to such person’s gross negligence or willful misconduct.

 

5.4                               Amendment and Termination.

 

The Board of
the Company may amend, modify, or terminate the Plan at any time and in any
manner. Such actions by the Board of the Company shall be binding upon all
other Employers. In addition, the Plan shall automatically terminate at the
time of the termination of the Retirement Plan, and any benefit payment
obligation under the Plan shall be measured with respect to the benefits which
are payable from the Retirement Plan irrespective of whether such benefits are
actually paid due to an insufficiency of assets to pay such benefits. In the
event of a termination of the Plan pursuant to this Section 5.4, no further
benefits shall accrue under the Plan, and amounts which are then payable shall
continue to be an obligation of the Employer and shall be paid as scheduled;
provided, however, that the Company reserves the right, in its sole discretion,
to accelerate payments to the affected Eligible Participants in the event of a
complete or partial termination of the Retirement Plan or the Plan. Notwithstanding
the foregoing, if the Plan is to be terminated, then the termination shall be
in accordance with Section 1.409A-3(j)(4)(ix) of the U.S. Treasury regulations.

 

11

 

5.5                               Not an Employment Agreement.

 

Nothing
contained in the Plan is intended to nor shall it confer upon any Participant
the right to be retained in the service of the Employer, nor shall the
existence of the Plan interfere with the right of the Employer to terminate,
lay off, discharge or otherwise deal with any Participant.

 

5.6                               Funding.

 

All amounts
paid under the Plan shall be paid from the general assets of the Employers. Benefits
shall be reflected on the accounting records of the Employers, but neither the
Plan nor the maintenance of such accounting records shall be construed to
create, or require the creation of a trust, custodial account, or escrow
account with respect to any Eligible Participant. No Eligible Participant shall
have any right, title, or interest whatsoever in or to any investment reserves,
accounts, or fund that the Employers may purchase, establish, or accumulate to
aid in providing the unfunded benefit payments described in the Plan. Nothing
contained in the Plan, and no action taken pursuant to its provisions, shall
create, or be construed to create, a trust or fiduciary relationship of any kind
between an Employer or the Administrative Committee and an Eligible Participant
or any other person. Eligible Participants shall not acquire any interest under
the Plan greater than that of an unsecured general creditor of an Employer. The
trust fund maintained pursuant to the Retirement Plan shall not be liable for
any benefits accrued under the Plan.

 

5.7                               Severability.

 

In the event
any provision of the Plan shall be held invalid or illegal for any reason, any
illegality or invalidity shall not affect the remaining parts of the Plan, but the
Plan shall be construed and enforced as if the illegal or invalid provision had
never been inserted, and the Administrative Committee shall have the privilege
and opportunity to correct and remedy such questions of illegality or
invalidity by amendment as provided in the Plan.

 

5.8                               Assignment of Benefits.

 

An Eligible
Participant may not, either voluntarily or involuntarily, assign, anticipate,
alienate, commute, pledge or encumber any benefits to which he is or may become
entitled to under the Plan, nor may the same be subject to attachment or
garnishment by any creditor of an Eligible Participant. Notwithstanding the
foregoing provisions of this Section 5.8, no benefit amount payable under the
Plan shall be payable until and unless any and all amounts representing debts
or other obligations owed to the Company by the Eligible Participant with
respect to whom such amount would otherwise be payable shall have been fully
paid.

 

5.9                               Tax Withholding.

 

An Employer
may withhold from any payment of benefits hereunder any taxes required to be
withheld and such sum as the Employer may reasonably estimate to be necessary
to cover any taxes for which the Employer may be responsible and which may be
assessed with regard to such payment.

 

5.10                        Effect on Other Benefit Plans.

 

Amounts
credited or paid under the Plan shall not be considered to be compensation for
the purposes of the Retirement Plan or any other plans maintained by an
Employer. The treatment of such amounts under other employee benefit plans
shall be determined pursuant to the provisions of such plans.

 

12

 

5.11                        Applicable Law.

 

The Plan shall
be governed and construed in accordance with the laws of the State of Texas.

 

5.12                        Scope.

 

The Plan is
intended only to remedy Retirement Plan benefit reductions caused by the
operation of Code Sections 415 and/or 401(a)(17) and to provide for benefits to
Window Benefit Participants and Window Excluded Participants and not reductions
for any other reason.

 

5.13                        Code Section 409A Compliance.

 

It is intended
that the provisions of the Plan satisfy the requirements of Code Section 409A
and that the Plan be operated in a manner consistent with such requirements to
the extent applicable. Therefore, the Administrative Committee may make
adjustments to the Plan and may construe the provisions of the Plan in
accordance with the requirements of Code Section 409A.

 

5.14                        Specified Employees.

 

If an Eligible
Participant is a “specified employee,” as such term is defined in Code Section
409A and determined as described below in this Section 5.14, any payments
payable as a result of the Eligible Participant’s Termination of Employment (other
than death) shall not be payable before the earliest of (i) the date that is
six months after the Eligible Participant’s Termination of Employment, (ii) the
date of the Eligible Participant’s death, or (iii) the date that otherwise
complies with the requirements of Code Section 409A. An Eligible Participant
shall be a “specified employee” for the 12-month period beginning on April 1 of
a year if the Eligible Participant is a “key employee” as defined in Code Section
416(i) (without regard to Code Section 416(i)(5)) as of December 31 of the
preceding year or using such dates as designated by the Administrative
Committee in accordance with Code Section 409A and in a manner that is
consistent with respect to all of the Company’s nonqualified deferred
compensation plans. For purposes of determining the identity of “specified
employees,” the Administrative Committee may establish procedures as it deems
appropriate in accordance with Code Section 409A.

 

When
calculating the benefits payable to a “specified employee” under the Plan, the
interest rate in effect under the Applicable Retirement Plan shall be used to
calculate the Lump-Sum Equivalent. For a “specified employee,” the “date of
determination” for calculation of the Lump-Sum Equivalent shall be deemed to be
the date of payment to such “specified employee.”

 

5.15                        Incompetence.

 

Every person
receiving or claiming benefits under the Plan shall be conclusively presumed to
be mentally competent until the date on which the Administrative Committee
receives a written notice, in a form and manner acceptable to the Administrative
Committee, that such person is incompetent, and that a guardian, conservator,
or other person legally vested with the care of such person’s person or estate
has been appointed; provided, however, that if the Administrative Committee
shall find that any person to whom a benefit is payable under the Plan is
unable to care for such person’s affairs because of incompetency, any payment
due (unless a prior claim therefor shall have been made by a duly appointed
legal representative) may be paid as provided in the Retirement Plan. Any such
payment so made shall be a complete discharge of liability therefor under the
Plan.

 

13

 

5.16                        Binding on Employer, Eligible
Participants and Their Successors.

 

The Plan shall
be binding upon and inure to the benefit of the Employers, their successors and
assigns, and the Eligible Participants, their heirs, executors, administrators
and legal representatives. The provisions of the Plan shall be applicable with
respect to each Employer separately, and amounts payable hereunder shall be
paid by the Employer of the particular Eligible Participant. In the event any
Eligible Participant becomes entitled to a benefit under the Retirement Plan
based on service with more than one Employer, the benefit obligations under the
Plan shall be apportioned among such Employers as determined by the
Administrative Committee.

 

Article 6.                                            Adoption
Procedure

 

6.1                               Adoption Procedure.

 

With the
consent of the Company, any other organization which satisfies the definition
of Employing Company under the Retirement Plan and the Plan and which is
eligible by law to do so may adopt the Plan for the benefit of its Employees
who are or who become Participants under the Retirement Plan, on express
condition that the Company assumes no liability as a result of any such
adoption of the Plan by such organization. Such other organization may adopt the
Plan by—

 

(a)                                  executing
an adoption instrument adopting the Plan, and agreeing to be bound as a
participating Employer by all the terms, provisions, conditions, and
limitations of the Plan; and

 

(b)                                 compiling
and submitting all information required by the Company with reference to
persons in its employment eligible for membership in the Plan.

 

The adoption
instrument shall specify the effective date of such adoption of the Plan and
shall become, as to such organization and persons in its employment, a part of
the Plan.

 

6.2                               Withdrawal of Participating
Employer.

 

Any Participating
Employer may withdraw from the Plan by giving 60 days’ notice in writing of its
intention to withdraw to the Company, unless a shorter notice shall be agreed
to by the Company. Any withdrawing Employer shall remain responsible for its
respective benefit obligations following such a withdrawal.

 

14

 

IN WITNESS WHEREOF, the Company has caused these
presents to be executed by its duly authorized officer, in a number of copies,
all of which shall constitute but one and the same instrument that may be
sufficiently evidenced by any such executed copy hereof, this       
day of                           ,
2007, but effective as of the date provided herein.

 

	
   

  	
  TRANSOCEAN
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

 

15

 

Participating
Employers Under the

Transocean U.S. Supplemental Retirement Benefit Plan

 

The following
employers are participating Employers under the Transocean U.S. Supplemental
Retirement Benefit Plan as of November 27, 2007, unless a later participation
date is designated:

 

Transocean
Inc.

 

16

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