To Award Letter
Granted July 9, 2008 (the “Grant Date”)
Terms and Conditions of
Nonqualified Share Option Award
The nonqualified option (the “Option”) granted to you on the Grant Date by Transocean Inc. (the “Company”) to purchase
ordinary shares, par value $0.01 per share, of the Company (“Ordinary Shares”) is 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 Executive Compensation Committee of the Board of Directors (the “Committee”), 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 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.
You may purchase Ordinary Shares covered by the Option for the Option Price stated in your Award Letter.
Your Option expires on the Expiration Date stated in your Award Letter. However, your Option will terminate prior to
the Expiration Date as provided in Section 6 of this Appendix A upon the occurrence of one of the events described in
that Section. Regardless of the provisions of Section 6, in no event can your Option be exercised after the Expiration
Date, except that a vested Option which is outstanding on the date of your death shall remain outstanding and
exercisable until the later of (i) one year after your death, or (ii) the Expiration Date.
The Company currently utilizes Charles Schwab (“Schwab”) as the broker for outsourcing administration of the Plan,
but reserves the right to use another broker. If necessary, this new broker selected by the Company will be substituted
for Schwab. It will be necessary for you to open an account with Schwab and you should consult the information
provided with this packet. Subject to applicable