Document:

<PAGE>

                                                                    EXHIBIT 10.3

ROBERT L. LONG
PRESIDENT AND CHIEF EXECUTIVE OFFICER

August 20, 2004

Dear___________:

Transocean Inc. (the "Company") hereby grants to you effective as of July 8,
2004 the opportunity to receive up to a maximum of___________ restricted shares
("Contingent Restricted Shares") of the ordinary shares, par value US $0.01 per
share, of the Company ("Ordinary Shares") in accordance with the Transocean Inc.
Long-Term Incentive Plan (the "Plan"). The exact amount of your award will be
determined during the first half of 2006 (with the actual date referred to as
the "Determination Date"). Please refer to the attached Appendix 1, Terms and
Conditions of Employee Contingent Restricted Ordinary Share Award, for further
details.

Normal vesting of the shares earned (if any) is indicated below ("Vesting
Schedule"), excepting events as defined in the attached Appendix 1:

<TABLE>
<CAPTION>
                         PERCENTAGE OF
   VESTING DATE          SHARES VESTING
-------------------      --------------
<S>                      <C>
 Determination Date          33-1/3%
   January 1, 2007           33-1/3%
   January 1, 2008           33-1/3%
</TABLE>

Your Contingent Restricted Shares are subject to the terms and conditions set
forth in the enclosed Plan, the Prospectus for the Plan, any additional terms
and conditions set forth in the attached Appendix 1 and any rules and
regulations adopted by the Board of Directors.

This award letter and the attachments contain the formal terms and conditions of
your award and accordingly should be retained in your files for future
reference.

Congratulations on your award.

Very truly yours,

Robert L. Long
Enclosures

(713)232-7001 FAX        (713)232-7619 OFFICE        blong@houston.deepwater.com
<PAGE>

                                   APPENDIX 1
                                 TO AWARD LETTER

                             TERMS AND CONDITIONS OF
               EMPLOYEE CONTINGENT RESTRICTED ORDINARY SHARE AWARD
                         JULY 8, 2004 (THE "GRANT DATE")

The contingent award by Transocean Inc. (the "Company") to you effective as of
the Grant Date for the opportunity to, if certain conditions are met, receive
Restricted ordinary shares, par value US $0.01 per share, of the Company
("Restricted Shares") is subject to the terms and conditions set forth in the
Transocean Inc. Long-Term Incentive Plan (the "Plan"), the enclosed Prospectus
for the Plan, any rules and regulations adopted by the Executive Compensation
Committee of the Board of Directors (the "Committee"), and any additional terms
and conditions set forth in this Appendix 1 (which includes Exhibit A attached
hereto) which form a part of the attached award letter to you ("Award Letter").
Any terms used and not defined in the Award Letter have the meanings set forth
in the Plan. In the event there is an inconsistency between the terms of the
Plan and the Award Letter, the terms of the Plan will control.

1.    DETERMINATION OF EARNED SHARES

      (a)   EARNED SHARES

            The exact number of Restricted Shares that will actually be earned
            by and granted to you and subject to the vesting described herein
            (the "Earned Shares") out of the total maximum number of Restricted
            Shares described in the Award Letter (the "Total Potential Grant")
            will be based upon the achievement by the Company of the two
            performance standards described below over the two-year period of
            calendar years 2004 and 2005 (the "Performance Cycle"). The
            determination by the Committee with respect to the achievement of
            such performance standards will be made in the first half of 2006
            after all necessary Company and peer information is available. The
            specific date on which such determination is formally made and
            approved by the Committee is referred to as the "Determination
            Date". After the Determination Date, the Company will notify you of
            the number of Earned Shares, if any, to be actually granted to you
            and the number of shares that vest on each vesting date.

            The performance standards and the amount of shares out of the Total
            Potential Grant which may be earned are as follows:

            (i)   One half of the Total Potential Grant shall be subject to
                  potential award as Earned Shares based upon the Company's
                  performance with respect to unleveraged (i.e., excluding the
                  effects of debt and interest) after-tax Cash Flow Return on
                  Capital ("CFROC") compared against a peer group; and

            (ii)  One half of the Total Potential Grant shall be subject to
                  potential award as Earned Shares based on the Company's
                  performance on total shareholder return ("TSR") compared
                  against a peer group.

                                       1
<PAGE>

            TODCO, a publicly traded drilling company in which the Company
            currently owns a majority interest, is excluded from the CFROC
            calculation. More detailed definitions and the methodology for
            calculating the Earned Shares are set forth in Exhibit A.

      (b)   COMMITTEE DETERMINATIONS

            The Committee shall have absolute discretion to determine the number
            of Earned Shares to which you are entitled, if any, including
            without limitation such adjustments as may be necessary in the
            opinion of the Committee to account for changes since the date of
            the Award Letter. The Committee's determination shall be final,
            conclusive and binding upon you. You shall not have any right or
            claim with respect to any shares other than Earned Shares to which
            you become entitled in accordance herewith.

2.    VESTING

      (a)   Unless vested on an earlier date as provided in this Appendix 1, the
            Earned Shares will vest in installments as set forth in the Vesting
            Schedule in your Award Letter.

      (b)   In certain circumstances more particularly described in Sections 5
            and 7 below, your Earned Shares may vest before these dates. In
            addition, the Committee may accelerate the vesting of all or a
            portion of your Earned Shares at any time in its discretion.

      (c)   You do not need to pay any purchase price for the Earned Shares.

3.    RESTRICTIONS

      Until and unless Earned Shares are granted to you, you do not own any of
      the Ordinary Shares potentially subject to this contingent award and may
      not attempt to sell, transfer, assign or pledge any such Ordinary Shares.
      Your Earned Shares, if any, will be registered in your name as of the
      Determination Date. The unvested portion of the Earned Shares will be held
      by the Company on your behalf until such Shares vest and may not be
      transferred, sold, assigned or pledged in any manner prior to vesting. You
      will be required to open a brokerage account with Charles Schwab & Co.,
      Inc. ("Schwab"), or such other broker as the Company reserves the right to
      designate, prior to taking possession of any earned shares. Promptly after
      the Earned Shares vest, the net shares (total vested Earned Shares minus
      any Earned Shares retained to satisfy the tax withholding obligation of
      the Company, as described in Section 8), will be delivered in street name
      to your Schwab brokerage account (or, in the event of your death, to a
      Schwab brokerage account in the name of your beneficiary under the Plan or
      to such other brokerage account with another broker retained by the
      Company if Schwab is no longer retained by the Company) or, at the
      Company's option, a certificate for such shares will be delivered to you.
      There will be some delay between the date of vesting and the date your
      shares become available to you due to administrative reasons. Your vested
      Earned Shares will no longer be Restricted Shares.

                                       2
<PAGE>

4.    DIVIDENDS AND VOTING

      After the Determination Date, all cash dividends (if any) payable with
      respect to your Earned Shares, if any, will be paid directly to you at the
      same time dividends are paid with respect to all other Ordinary Shares of
      the Company. Also, after the Determination Date, you will have the right
      to vote your Earned Shares.

5.    TERMINATION OF EMPLOYMENT

      (a)   TERMINATION ON OR AFTER THE END OF THE PERFORMANCE CYCLE

            The terms set out in subsections (i)-(iv) of this Section 5(a)
            shall apply to the obtainment and vesting of Earned Shares in the
            event of your death, disability, retirement or other termination of
            employment on or after the last calendar day of the Performance
            Cycle. Subsections (i)-(iv) of this Section 5(a) shall not apply
            if any such event occurs prior to the last day of the Performance
            Cycle, in which case Section 5(b) shall apply.

            (i)   DEATH OR DISABILITY. If your employment is terminated by
                  reason of death or disability (as determined by the
                  Committee), the normal determination of Earned Shares shall be
                  made (if not already made) and all of your remaining unvested
                  Earned Shares will vest upon the later of your date of
                  termination due to death or disability and the Determination
                  Date.

            (ii)  CONVENIENCE OF THE COMPANY. If your employment is terminated
                  for the convenience of the Company (as determined by the
                  Committee), the normal determination of Earned Shares shall be
                  made (if not already made) and all of your unvested Earned
                  Shares will vest upon the later of the date of termination and
                  Determination Date.

            (III) RETIREMENT. If your employment is terminated by reason of
                  retirement (as defined below), the normal determination of
                  Earned Shares shall be made (if not already made) and your
                  unvested Earned Shares will vest upon the later of the date of
                  retirement and the Determination Date.

            (iv)  OTHER TERMINATION OF EMPLOYMENT. If your employment is
                  terminated for any reason other than death, disability,
                  termination for the convenience of the Company or retirement
                  (as these terms are used herein), any of your Earned Shares
                  which have not vested prior to your termination of employment
                  will be forfeited.

      (b)   TERMINATION PRIOR TO THE END OF THE PERFORMANCE CYCLE

            The terms set out in subsections (i)-(iv) below of this Section
            5(b) shall apply to the obtainment and vesting of Earned Shares in
            the event of your death, disability, termination for the convenience
            of the Company, retirement or other termination of employment prior
            to the last day of the Performance Cycle.

                                       3
<PAGE>

            (i)   DEATH OR DISABILITY. If your employment is terminated by
                  reason of death or disability (as determined by the
                  Committee), you will be entitled to earn a Pro-Rata Share (as
                  defined below) of your Total Potential Grant. All such Earned
                  Shares shall vest on the Determination Date.

            (ii)  CONVENIENCE OF THE COMPANY. If your employment is terminated
                  for the convenience of the Company (as determined by the
                  Committee), you will be entitled to earn a Pro-Rata Share of
                  your Total Potential Grant. All such Earned Shares shall vest
                  on the Determination Date.

            (iii) RETIREMENT. If your employment is terminated by reason of
                  retirement (as defined below), you will be entitled to earn a
                  Pro-Rata Share of your Total Potential Grant. All such Earned
                  Shares shall vest on the Determination Date.

            (iv)  OTHER TERMINATION OF EMPLOYMENT. If your employment is
                  terminated for any reason other than death, disability,
                  termination for the convenience of the Company or retirement
                  (as defined herein), you will not be entitled to any Earned
                  Shares.

      (c)   DEFINITION OF RETIREMENT

            Retirement is defined for the purpose of this section of Appendix 1
            as meeting the "Rule of 70", which requires a minimum age of 55,
            combined with years of service to total 70 or more. If you retire
            after the age of 55, yet your age and years of service do not lead
            to a combined 70, your termination will be treated as "Other
            Termination of Employment" described above, unless designated by the
            Committee in its discretion as a termination for the "Convenience of
            the Company".

      (d)   DEFINITION OF PRO-RATA SHARE

            Pro-Rata Share is determined by multiplying the number of Earned
            Shares which would have otherwise been earned had your employment
            not been terminated by a fraction, the numerator of which is the
            number of calendar days you were employed during the Performance
            Cycle after the Grant Date and the denominator of which is the total
            number of calendar days in the Performance Cycle after the Grant
            Date.

      (e)   ADJUSTMENTS BY THE COMMITTEE

            The Committee may, in its sole discretion, exercised before or after
            your termination of employment, accelerate the vesting of all or any
            portion of your Earned Shares.

      (f)   COMMITTEE DETERMINATIONS

            The Committee shall have absolute discretion to determine the date
            and circumstances of termination of your employment, including
            without limitation whether as a result of death, disability,
            convenience of the Company, retirement or any other reason, and its
            determination shall be final, conclusive and binding upon you.

                                       4
<PAGE>

6.    BENEFICIARY

      You may designate a beneficiary to receive any Earned Shares that become
      due to you after your death, and may change your beneficiary from time to
      time. Beneficiary designations should be filed with the Administrator of
      the Long-Term Incentive Plan in the Corporate Human Resources Department.
      If you fail to designate a beneficiary, Earned Shares due to you under the
      Plan will be issued to the executor or administrator of your estate in the
      event of your death.

7.    CHANGE OF CONTROL

      (a)   ACCELERATION OF VESTING

            If you are employed by the Company on the date of a Change of
            Control of the Company and the Determination Date has not occurred,
            you will be entitled to 50% of your Total Potential Grant, with
            vesting to occur upon the Change of Control of the Company. If you
            are employed by the Company on the date of a Change of Control and
            the Determination Date has occurred, all Earned Shares shall vest
            upon the Change of Control of the Company.

      (b)   SECTION 280G LIMITATION

            Notwithstanding anything in the Award Letter and this Appendix 1 to
            the contrary, if all or any portion of the benefits provided
            hereunder, either alone or together with other payments and benefits
            received or to be received from the Company or any affiliate or
            successor, would constitute a "parachute payment", as such term is
            defined in Section 280G(b)(2) of the U.S. Internal Revenue Code of
            1986 (the "Code"), and the amount of the parachute payment, reduced
            by all U.S. federal, state and local taxes applicable thereto,
            including the excise tax imposed pursuant to Code Section 4999, is
            less than the amount you would receive if you were paid three times
            your "base amount," as defined in Code Section 280G(b)(3), less one
            dollar, reduced by all U.S. federal, state and local taxes
            applicable thereto, then the aggregate of the amounts constituting
            the parachute payment shall be reduced to an amount that will equal
            three times your base amount less one dollar, and, to the extent
            necessary, the award or vesting of Earned Shares shall be reduced by
            the Committee in order that this limitation not be exceeded;
            provided, however, that this Section 7(b) shall be superceded in its
            entirety by (i) any contrary treatment of parachute payments to
            which you have agreed in writing prior to the Change of Control
            pursuant to any other plan, program or agreement, or (ii) any more
            favorable treatment of the excise tax on parachute payments extended
            to you by the Company or its affiliates pursuant to any other plan,
            program or agreement.

8.    INCOME TAX WITHHOLDING

      (a)   You should consult the Long-Term Incentive Plan Prospectus for a
            general summary of the U.S. federal income tax consequences to you
            from the Restricted Ordinary

                                       5
<PAGE>

            Shares based on currently applicable provisions of the Code and
            related regulations. The summary does not discuss state and local
            tax laws or the laws of any other jurisdiction, which may differ
            from U.S. federal tax law. For these reasons, you are urged to
            consult your own tax advisor regarding the application of the tax
            laws to your particular situation.

      (b)   You must make arrangements satisfactory to the Company to satisfy
            any applicable U.S. federal, state or local withholding tax
            liability arising from the vesting of the Earned Shares. You can
            either make a cash payment to Schwab of the required amount or you
            can elect to satisfy your withholding obligation by having Schwab
            retain Ordinary Shares having a value approximately equal to the
            amount of your withholding obligation from the Earned Shares
            otherwise deliverable to you upon the vesting of such shares. You
            may not elect for such withholding to be greater than the minimum
            statutory withholding tax liability arising from the vesting of the
            Earned Shares. If, alternatively, you make an election pursuant to
            Code Section 83(b) to have the value of the Earned Shares included
            in your gross income prior to their vesting, you may not satisfy
            your withholding obligations through the sale of Earned Shares, but
            instead must make a cash payment or such other arrangement
            satisfactory to the Company to satisfy the minimum statutory
            withholding tax liability arising from such election, and you must
            notify the Company that you are making the Code Section 83(b)
            election no later than the day on which you make the election. If
            you fail to satisfy your withholding obligation in a time and manner
            satisfactory to the Company, the Company shall have the right to
            withhold the required amount from your salary or other amounts
            payable to you. Further, any dividends on the Earned Shares paid to
            you pursuant to Section 4 above prior to their vesting will
            generally be subject to federal, state and local tax withholding, as
            appropriate, as additional compensation.

      (c)   In addition, you must make arrangements satisfactory to the Company
            to satisfy any applicable withholding tax liability imposed under
            the laws of any other jurisdiction arising from the Restricted
            Ordinary Shares. You may not elect to have Schwab withhold Earned
            Shares having a value in excess of the minimum statutory withholding
            tax liability. If you fail to satisfy such withholding obligation in
            a time and manner satisfactory to the Company, the Company shall
            have the right to withhold the required amount from your salary or
            other amounts payable to you.

9.    RESTRICTIONS ON RESALE

      Other than the restrictions referenced in paragraph 3, there are no
      restrictions imposed by the Plan on the resale of Earned Shares acquired
      under the Plan. However, under the provisions of the Securities Act of
      1933 (the "Securities Act") and the rules and regulations of the
      Securities and Exchange Commission (the "SEC"), resales of shares acquired
      under the Plan by certain officers and directors of the Company who may be
      deemed to be "affiliates" of the Company must be made pursuant to an
      appropriate effective registration statement filed with the SEC, pursuant
      to the provisions of Rule 144 issued under the Securities Act, or pursuant
      to another exemption from registration provided in the Securities Act. At
      the present time,

                                       6
<PAGE>

      the Company does not have a currently effective registration statement
      pursuant to which such resales may be made by affiliates. These
      restrictions do not apply to persons who are not affiliates of the
      Company; provided, however, that all employees are subject to the
      Company's policies against insider trading, and restrictions on resale may
      be imposed by the Company from time-to-time as may be necessary under
      applicable law.

10.   EFFECT ON OTHER BENEFITS

      Income recognized by you as a result of the grant or vesting of Earned
      Shares or dividends on your Earned Shares will not be included in the
      formula for calculating benefits under any of the Company's retirement and
      disability plans or any other benefit plans.

If you have any questions regarding your contingent award or would like to
obtain additional information about the Plan or the Committee, please contact
the Company's Director of Compensation and Benefits, Human Resources Department,
P. O. Box 2765, Houston, Texas 77252. Your Award Letter and this Appendix 1
contain the formal terms and conditions of your award and accordingly should be
retained in your files for future reference.

                                       7
<PAGE>

       EXHIBIT "A" TO EMPLOYEE CONTINGENT RESTRICTED ORDINARY SHARE AWARD

A. DEFINITIONS:

1. TOTAL SHAREHOLDER RETURN

Total Shareholder Return ("TSR") through the Performance Cycle is based on the
comparison of the closing share price for the thirty (30) business days prior to
start of the Performance Period and the average closing share price for the last
thirty (30) business days in the Performance Period. The same calculation is
conducted for the Company and all the companies in the following group:

         GlobalSantaFe         Ensco
         Noble                 Diamond
         Pride                 Rowan
         Nabors                Baker Hughes
         BJ                    Schlumberger
         Halliburton           Smith
         Weatherford           Tidewater

The companies are then ranked from best to worst in percent
improvement/deterioration in share price, adjusted for dividends.

2. CASH FLOW RETURN ON CAPITAL

A calculation of unleveraged (i.e., excluding the effects of debt and interest)
after-tax Cash Flow Return on Capital ("CFROC") is determined by taking an
average of all quarterly results in the Performance Period. The quarterly
calculation is made as follows:

Net Income (loss)

  Plus:          Impairment of assets, net of tax
  Plus:          Depreciation expense
  Plus (Minus):  Interest (income) expense
  Plus (Minus):  (Gain) loss on disposal of assets, net of tax
  Plus (Minus):  Unusual tax (benefits) expense
  Divided by:    Quarterly Weighted Average Tangible Capital

Where Tangible Capital Equals:

Total Equity
  Plus:          Debt (Short & Long Term)
  Minus:         Cash & cash equivalents
                   (to the extent they are less than or equal to Short Term
                   Debt)
  Plus:          Accumulated Depreciation
  Minus:         Goodwill

                                       1
<PAGE>

These calculations and the adjustments indicated above are made on the basis of
audited, publicly available data from annual reports and unaudited publicly
available data from quarterly reports filed with the Securities and Exchange
Commission by Transocean and the other companies. The adjustments are applied so
as to "normalize" the measure and ensure the integrity of the ranking process.
TODCO, a publicly traded drilling company in which the Company currently owns a
majority interest, is excluded from the CFROC calculation.

The calculation is applied and a ranking made from best to worst for the Company
and the following group of companies:

         GlobalSantaFe             Ensco
         Noble                     Diamond
         Pride                     Rowan
         Nabors                    Helmerich & Payne
         Tidewater

B. COMMITTEE METHODOLOGY:

Once the calculations and rankings are completed for both TSR and CFROC for the
Performance Period, the number of shares that may become earned is determined.
In particular, a #1 ranking for both TSR and CFROC would result in a
determination that all shares may become earned. A ranking at or below 8th and
11th for CFROC and TSR, respectively, would result in a determination that no
shares become earned. Share determination percentages for rankings between these
boundaries are made in accordance with the payout grid attached hereto.

C. EXAMPLE

Employee Award:      600 shares (Maximum Award)
Performance Period:  01/01/04 - 12/31/05
Determination Date:  04/15/06
TSR Ranking:         5th of 15
CFROC Ranking:       2nd of 10
Earned Percentage:   80%
Earned Shares:       480
Vesting Schedule:
                     160 shares on Determination Date
                     160 shares on 01/01/07
                     160 shares on 01/01/08

NOTE: THE COMMITTEE MAY IN ITS SOLE DISCRETION INTERPRET THE FORMULA AND REVISE
THE MAKEUP OF THE COMPANY GROUP(S) OR MODIFY THE TSR OR CFROC CALCULATIONS OR
APPLICATION IN RESPONSE TO MERGER ACTIVITY AMONGST COMPANIES OR OTHER EVENTS
ACTUALLY OR POTENTIALLY AFFECTING THE PERFORMANCE MEASURE(S). THE COMMITTEE'S
DETERMINATION WILL BE FINAL AND BINDING.

                                       2
<PAGE>

                PAYOUT GRID FOR CONTINGENT SHARES BASED ON TSR /
                           CFROC PERFORMANCE MEASURES

<TABLE>
<CAPTION>
         CFROC
TSR        1          2       3        4         5        6        7         8        9        10
---       ---        --      --       --        --       --       --        --       --        --
<S>       <C>        <C>     <C>      <C>       <C>      <C>      <C>       <C>      <C>       <C>
 1        100%       95%     90%      85%       80%      75%      70%       65%      50%       50%
 2         96%       91%     86%      81%       76%      71%      66%       61%      46%       46%
 3         93%       88%     83%      78%       73%      68%      63%       58%      43%       43%
 4         89%       84%     79%      74%       69%      64%      59%       54%      39%       39%
 5         85%       80%     75%      70%       65%      60%      55%       50%      35%       35%
 6         81%       76%     71%      66%       61%      56%      51%       46%      31%       31%
 7         78%       73%     68%      63%       58%      53%      48%       43%      28%       28%
 8         74%       69%     64%      59%       54%      49%      44%       39%      24%       24%
 9         70%       65%     60%      55%       50%      45%      40%       35%      20%       20%
10         66%       61%     56%      51%       46%      41%      36%       31%      16%       16%
11         63%       58%     53%      48%       43%      38%      33%        0%       0%        0%
12         50%       45%     40%      35%       30%      25%      20%        0%       0%        0%
13         50%       45%     40%      35%       30%      25%      20%        0%       0%        0%
14         50%       45%     40%      35%       30%      25%      20%        0%       0%        0%
15         50%       45%     40%      35%       30%      25%      20%        0%       0%        0%
</TABLE>

                                       3<PAGE>
                                                                    EXHIBIT 10.4

ROBERT L. LONG
PRESIDENT AND CHIEF EXECUTIVE OFFICER

September 27, 2004

Dear _______:

Transocean Inc. (the "Company") hereby grants to you effective as of May 13,
2004 (the "Award Date") deferred units ("Deferred Units") representing a total
of 2,282 ordinary shares, par value US $0.01 per share, of the Company
("Ordinary Shares") in accordance with the Long-Term Incentive Plan of
Transocean Inc. (the "Plan"). Please refer to the attached Appendix A, Terms and
Conditions of Director Deferred Unit Award for further details.

Unless otherwise provided in the attached Appendix A, your Deferred Unit award
will vest in three (3) annual installments, as follows:

<Table>
<Caption>

                                  Number of Deferred
       Period Beginning             Units Vesting
       ----------------           ------------------
<S>                               <C>
         May 13, 2005                     760
         May 13, 2006                     761
         May 13, 2007                     761
</Table>

Notwithstanding the foregoing, the certificate for the number of Ordinary Shares
to which your vested Deferred Units relate will not be delivered to you until
you cease to be a Director of the Company.

Your Deferred Unit award is subject to the terms and conditions set forth in the
enclosed Plan, the Prospectus for the Plan, any additional terms and conditions
set forth in the attached Appendix A and any rules and regulations adopted by
the Board of Directors.

This award letter and the attachments contain the formal terms and conditions of
your award and accordingly should be retained in your files for future
reference.

Sincerely,

Robert L. Long
Enclosures

(713) 232-7028 fax        (713) 232-7619 OFFICE      blong@houston.deepwater.com
<PAGE>

                                   APPENDIX A
                                 TO AWARD LETTER
                                      DATED
                                  MAY 13, 2004

                             TERMS AND CONDITIONS OF
                          DIRECTOR DEFERRED UNIT AWARD

The deferred units ("Deferred Units") granted to you effective as of the Award
Date by Transocean Inc. (the "Company") representing a specified number of
ordinary shares, par value US $0.01 per share, of the Company ("Ordinary
Shares"), are subject to the terms and conditions set forth in the Long-Term
Incentive Plan of Transocean Inc. (the "Plan"), the enclosed Prospectus for the
Plan, any rules and regulations adopted by the Company's Board of Directors (the
"Board"), and any additional terms and conditions set forth in this Appendix A
which forms a part of the attached award letter to you ("Award Letter"). Any
terms used and not defined in the Award Letter have the meanings set forth in
the Plan. In the event there is an inconsistency between the terms of the Plan
and the Award Letter, the terms of the Plan will control.

1.       VESTING OF DEFERRED UNITS

         (a)  Unless vested on an earlier date as provided in this Appendix A,
              the Deferred Unit award granted pursuant to your Award Letter will
              vest on each vesting date as set forth in your Award Letter.

         (b)  In certain circumstances described in paragraphs 3 and 4 below,
              your Deferred Units may vest before a vesting date.

2.       RESTRICTIONS ON THE DEFERRED UNITS

         Upon your termination of service as a Director of the Company, stock
         certificates for the number of Ordinary Shares equal to the number of
         vested Deferred Units will be delivered to you (or, in the event of
         your death, to your beneficiary under the Plan) as soon as practicable.
         During the period of time between the Award Date and the date on which
         you receive a distribution of the Ordinary Shares related to the
         Deferred Units awarded hereunder, your award of Deferred Units will be
         evidenced by credit to a book entry account. Until delivery of such
         Ordinary Shares, you may not sell, transfer, assign or pledge the
         Ordinary Shares subject to your Deferred Unit award.

3.       TERMINATION OF SERVICE

         (a)  GENERAL. The following rules apply to the vesting of your Deferred
              Units in the event of your termination of service as a Director of
              the Company.

<PAGE>

              (i)    DEATH OR DISABILITY. If your service is terminated by
                     reason of death or disability (as determined by the Board),
                     all of your Deferred Units will immediately vest.

              (ii)   RETIREMENT. If your service as a Director is terminated due
                     to retirement in accordance with the retirement policy for
                     members of the Board, all of your Deferred Units will
                     immediately vest.

              (iii)  OTHER TERMINATION OF SERVICE. If your service terminates
                     for any reason other than those provided in clauses (i) or
                     (ii) above, any of your Deferred Units which have not
                     vested prior to your termination of service will be
                     forfeited.

         (b)  BOARD DETERMINATIONS. The Board shall have absolute discretion to
              determine the date and circumstances of termination of your
              service, including without limitation whether as a result of
              death, disability, retirement or any other reason, and its
              determination shall be final, conclusive and binding upon you.

4.       CHANGE OF CONTROL

         Notwithstanding the provisions of paragraphs 1 and 3, all of your
         Deferred Units will vest immediately upon a Change of Control of the
         Company.

5.       DIVIDEND CREDITS

         In the event that dividends are paid with respect to Ordinary Shares,
         you will be entitled to receive a cash payment equal to the amount of
         the dividend paid per Ordinary Share as of such dividend payment date
         multiplied by the number of Deferred Units credited to your account
         immediately prior to such dividend payment date, with such amount to be
         payable to you as soon as practicable after the date on which dividends
         are paid with respect to all other Ordinary Shares of the Company.
         Also, you will have the right to vote with each vested Deferred Unit
         equal to one Ordinary Share.

6.       INCOME TAX WITHHOLDING

         (a)  You should consult the Plan Prospectus for a general summary of
              the U.S. federal income tax consequences to you of your Deferred
              Units based on currently applicable provisions of the Internal
              Revenue Code and related regulations. The summary does not discuss
              state and local tax laws or the laws of any other jurisdiction,
              which may differ from U.S. federal tax law. For these reasons, you
              are urged to consult your own tax advisor regarding the
              application of the tax laws to your particular situation.

         (b)  You must make arrangements satisfactory to the Company to satisfy
              any applicable U.S. federal, state or local withholding tax
              liability arising from the grant or vesting of your Deferred
              Units. You can either make a cash payment to the Company of the
              required amount or you can elect to satisfy your withholding
              obligation by having the Company retain Ordinary Shares having a
              value

                                      -2-
<PAGE>

                     approximately equal to the amount of your minimum statutory
                     withholding obligation from the shares otherwise
                     deliverable to you upon your termination of service. If you
                     fail to satisfy your withholding obligation in a time and
                     manner satisfactory to the Company, the Company shall have
                     the right to withhold the required amounts payable to you.
                     Further, any dividends on the Deferred Units paid to you
                     pursuant to Section 5 above will generally be subject to
                     federal, state and local tax withholding, as appropriate,
                     as additional compensation.

7.       ADJUSTMENTS

         As provided in Section 6.2 of the Plan, certain adjustments may be made
         to your Deferred Units upon the occurrence of events or circumstances
         described in Section 6.2 of the Plan.

8.       RESTRICTIONS ON RESALE

         Other than the restrictions referenced in paragraph 2, there are no
         restrictions imposed by the Plan on the resale of Ordinary Shares
         acquired under the Plan. However, under the provisions of the
         Securities Act of 1933 (the "Securities Act") and the rules and
         regulations of the Securities and Exchange Commission (the "SEC"),
         resales of Ordinary Shares acquired under the Plan by certain Directors
         of the Company who may be deemed to be "affiliates" of the Company must
         be made pursuant to an appropriate effective registration statement
         filed with the SEC, pursuant to the provisions of Rule 144 issued under
         the Securities Act, or pursuant to another exemption from registration
         provided in the Securities Act. The Company has filed an effective
         registration statement with the SEC. There are no restrictions imposed
         by the SEC of Common Stock acquired under the Plan by persons who are
         not affiliates of the Company.

9.       SHAREHOLDER RIGHTS

         You (or your beneficiary) will have no rights as a shareholder with
         respect to the Ordinary Shares represented by your Deferred Units
         unless and until all the terms, conditions and provisions of this
         Appendix A, the Award Letter and the Plan which affect you or such
         other person have been complied with as specified therein, and
         certificates evidencing such shares are delivered to you (or your
         beneficiary) pursuant to paragraph 2 hereof.

10.      GOVERNING LAW

         This Appendix A, the Award Letter and the Plan will be governed by, and
         construed in accordance with, the laws of the State of Texas.

If you have any questions regarding your Deferred Unit award or would like to
obtain additional information about the Plan, please contact the Company's
General Counsel, Transocean Inc., 4 Greenway Plaza, Houston, Texas 77046
(telephone (713) 232-7608). Your Award Letter and this Appendix A contain the
formal terms and conditions of your award and accordingly should be retained in
your files for future reference.

                                      -3-

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