Exhibit


Exhibit 10.3


THIS FORM OF AWARD AGREEMENT IS PART OF A PROSPECTUS COVERING SECURITIES THAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
AIR TRANSPORT SERVICES GROUP, INC.
2015 LONG-TERM INCENTIVE PLAN


RESTRICTED STOCK UNIT AWARD AGREEMENT
GRANTED TO [NAME] ON [DATE]


Air Transport Services Group (“Company”) and its shareholders believe that their business interests are best served by extending to you an opportunity to earn additional compensation based on the growth of the Company’s business. To this end, the Company and its shareholders adopted the Air Transport Services Group 2015 Long-Term Incentive Plan (“Plan”) as a means through which you may share in the Company’s success. This is done by granting Awards to non-employee directors like you. If you satisfy the conditions described in this Agreement (and the Plan), your Award will mature into common shares of the Company. 


This Award Agreement describes many features of your Award and the conditions you must meet before you may receive the value associated with your Award. To ensure you fully understand these terms and conditions, you should: 


		
	•
	Read the Plan and the Plan’s Prospectus carefully to ensure you understand how the Plan works;  


		
	•
	Read this Award Agreement carefully to ensure you understand the nature of your Award and what you must do to earn it; and,  


		
	•
	Contact [Name] at [Telephone Number] if you have any questions about your Award.  




Also, no later than [Date] you must return a signed copy of the Award Agreement to: 


[Name]
Air Transport Services Group
145 Hunter Drive
Wilmington, Ohio 45177


If you do not do this, your Award will be revoked automatically as of the date it was granted and you will not be entitled to receive anything on account of the retroactively revoked Award. 


Section 409A of the Internal Revenue Code (“Section 409A”) imposes substantial penalties on persons who receive some forms of deferred compensation (see the Plan’s Prospectus for more information about these penalties). Your Award has been designed to avoid these penalties.  As a condition of accepting this Award, you must agree to accept any revisions to your Award Agreement that the Company subsequently determines to be necessary in order for you to avoid these penalties, without any further consideration, even if those revisions change the terms of your Award and reduce its value or potential value. 









		
	1.
	Nature of Your Award 




You have been granted Restricted Stock Units (“RSUs”). If you satisfy the conditions described in this Award Agreement, your RSUs will be converted into an equal number of shares of Company stock. Federal income tax rules apply to RSUs. These and other conditions affecting your RSUs are described in this Award Agreement, the Plan and the Plan’s Prospectus, all of which you should read carefully. 


No later than [Date], you must return a signed copy of this Award Agreement to: 


[Name] 
Air Transport Services Group 
145 Hunter Drive 
Wilmington, Ohio 45177 


If you do not do this, your Award will be revoked automatically as of the Grant Date and you will not be entitled to receive anything on account of the retroactively revoked Award. 


		
	a.
	Grant Date: Your RSUs were issued on [Date].




This is the date you begin to earn your Award. 


		
	b.
	Number of RSUs:  You have been granted [Number] RSUs. The conditions that you must meet before the Award matures into shares of Company stock are discussed below in the section titled “When Your Award Will Be Settled.” 




		
	c.
	Restriction Period: The period that begins on the Grant Date (i.e., [Date]) and ends on the first anniversary of the Grant Date. 




This is the period over which the Plan committee will determine if you have met the conditions imposed on your Award. 


		
	2.
	When Your Award Will Be Settled 




		
	•
	Normal Settlement Date:  If you continue to serve as a non-employee director throughout the Restriction Period, your RSUs will be converted to an equal number of shares of Company stock and distributed to you within 60 days following the end of the Restriction Period.  However, if you do not continue to serve as a non-employee director throughout the Restriction Period, your RSUs will be forfeited.  However, your RSUs may be settled earlier or later under the circumstances described in the next sections.




		
	•
	How Your RSUs Might Be Settled Earlier Than the Normal Settlement Date: All restrictions on your RSUs will be removed automatically and [Number] shares of Company stock will be distributed to you if, before the end of the Restriction Period:




		
	•
	Your board service terminates because of death, Disability (as defined in the Plan) or after completing one full term as a board member; or  




		
	•
	There is a Business Combination (as defined in the Plan).  




		
	•
	How Your RSUs Might Be Settled Later Than The Normal Settlement Date:  You may elect to defer settlement of your RSUs to either a specific date after the end of the Restriction Period or to 



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your Termination of Service (as defined in the Plan) by completing a deferral election form (in the form attached to this Agreement) by no later than December 31 immediately preceding the calendar year during which you are to perform services to the Company as a non-employee director for which such RSUs are to be granted.


		
	•
	How Your RSUs May Be Forfeited: You will forfeit any RSUs if, before your RSUs are settled: 




		
	•
	Without the Company’s advance written consent, you agree to or actually serve in any capacity for a business or entity that competes with any portion of the Company’s or any Subsidiary’s (as defined in the Plan) business or provide services (including business consulting) to an entity that competes with any portion of the Company’s or any Subsidiary’s business;  




		
	•
	You refuse or fail to consult with, supply information to or otherwise cooperate with the Company after having been requested to do so; or  




		
	•
	You deliberately engage in any action that the Company decides harms the Company or any Subsidiary.  




		
	3.
	Settling Your Award 




If all applicable conditions have been met, your RSUs will be settled.  At that time, you will receive one share of Company stock for each RSU you have earned.  


		
	4.
	Other Rules Affecting Your Award 




		
	a.
	Until Your RSUs are Settled: Until your RSUs are settled, you may not exercise any voting rights associated with shares underlying your RSUs. Nor will you be entitled to receive any dividends paid on these shares. 




		
	b.
	Beneficiary Designation: You may name a Beneficiary or Beneficiaries to receive any portion of your Award that is settled after you die. This may be done only on the attached Beneficiary Designation Form and by following the rules described in that form and in the Plan. If you have not made an effective Beneficiary designation, your Beneficiary will be your surviving spouse or, if you do not have a surviving spouse, your estate. 




		
	c.
	Tax Withholding: You (and not the Company) are solely responsible for any income and other tax withholding obligation associated with this Award or its conversion to shares of Company stock.  




		
	d.
	Transferring Your RSUs: Normally your RSUs may not be transferred to another person. However, you may complete a Beneficiary Designation Form to name the person to receive the value of any RSUs that are settled after you die. Also, the Committee may allow you to place your RSUs into a trust established for your benefit or the benefit of your family. Contact [Name] at [Telephone Number] or at the address given below if you are interested in doing this. 




		
	e.
	Governing Law: This Award Agreement will be construed in accordance with and governed by the laws (other than laws governing conflicts of laws) of the United States and of the State of Ohio, except to the extent that the Delaware General Corporation Law is mandatorily applicable. 





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	f.
	Other Agreements: Also, your RSUs will be subject to the terms of any other written agreements between you and the Company. 




		
	g.
	Adjustments to Your RSUs: Your Award will be adjusted, if appropriate, to reflect any change to the Company’s capital structure (e.g., the number of your RSUs will be adjusted to reflect a stock split). 




		
	h.
	Other Rules: Your RSUs also are subject to more rules described in the Plan and in the Plan’s Prospectus. You should read both these documents carefully to ensure you fully understand all the conditions of this Award. 




		
	5.
	Tax Treatment of Your Award 




The federal income tax treatment of your RSUs is discussed in the Plan’s Prospectus which you should read carefully.  


*****


You may contact [Name] at [Telephone Number] or at the address given below if you have any questions about your Award or this Award Agreement. 

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*****


		
	6.
	Your Acknowledgment of Award Conditions 




Note: You must sign and return a copy of this Award Agreement to [Name] at the address given below no later than [Date]. 


 By signing below, I acknowledge and agree that: 


		
	•
	A copy of the Plan has been made available to me;  




		
	•
	I have received a copy of the Plan’s Prospectus;  




		
	•
	I understand and accept the conditions placed on my Award and understand what I must do to earn my Award; 




		
	•
	I will consent (on my own behalf and on behalf of my beneficiaries and without any further consideration) to any change to my Award or this Award Agreement to avoid paying penalties under Section 409A of the Internal Revenue Code, even if those changes affect the terms of my Award and reduce its value or potential value; and,  




		
	•
	If I do not return a signed copy of this Award Agreement to the address shown below not later than [Date], my Award will be revoked automatically as of the date it was granted and I will not be entitled to receive anything on account of the retroactively revoked Award.  




[Name]
    
(signature)
Date signed:     
A signed copy of this form must be sent to the following address no later than [Date]:
[Name]
Air Transport Services Group
145 Hunter Drive
Wilmington, Ohio 45177


After it is received, the Air Transport Services Group 2015 Long-Term Incentive Plan Committee will acknowledge receipt of your signed agreement.

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*****


Committee’s Acknowledgment of Receipt
A signed copy of this Award Agreement was received on ________________.    
By: ________________________          
Committee signature
 
[Name]:
______ Has complied with the conditions imposed on the grant and the Award and the Award Agreement remains in effect; or
______ Has not complied with the conditions imposed on the grant and the Award and the Award Agreement are revoked as of the Grant Date because
___________________________________________________________________________________________    
describe deficiency


Air Transport Services Group 2015 Long-Term Incentive Plan Committee
By: ____________________________________    
Date: ___________________________________    



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AIR TRANSPORT SERVICES GROUP
AMENDED AND RESTATED
2015 LONG-TERM INCENTIVE PLAN
BENEFICIARY DESIGNATION FORM
RELATING TO RESTRICTED STOCK UNITS ISSUED TO
[NAME] ON [DATE]


Instructions for Completing This Form
You may use this form to [1] name the person you want to receive any amount due under the Air Transport Services Group 2015 Long-Term Incentive Plan after your death or [2] change the person who will receive these benefits.
There are several things you should know before you complete this form.
First, if you do not elect another Beneficiary, any amount due to you under the Plan when you die will be paid to your surviving spouse or, if you have no surviving spouse, to your estate.
Second, your election will not be effective (and will not be implemented) unless you complete all applicable portions of this form.
Third, your election will be effective only if this form is completed properly and returned to [Name] at the address given below.
Fourth, all elections will remain in effect until they are changed (or until all death benefits are paid).
Fifth, if you designate your spouse as your Beneficiary but are subsequently divorced from that person (or your marriage is annulled), your Beneficiary designation will be revoked automatically.
Sixth, if you have any questions about this form or if you need additional copies of this form, please contact [Name] at [Telephone Number] or at the address given below.

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1.00    Designation of Beneficiary


1.01 Primary Beneficiary


I designate the following persons as my Primary Beneficiary or Beneficiaries to receive any amount due under the Award Agreement described at the top of this form after my death.  This benefit will be paid, in the proportion specified, to:


_________ % to ______________________________________________________________________________    
(Name)                                                                  (Relationship)
Address: ____________________________________________________________________________________    


_________ % to ______________________________________________________________________________    
(Name)                                                                  (Relationship)
Address: ____________________________________________________________________________________    


_________ % to ______________________________________________________________________________    
(Name)                                                                  (Relationship)
Address: ____________________________________________________________________________________    


_________ % to ______________________________________________________________________________    
(Name)                                                                  (Relationship)
Address: ____________________________________________________________________________________    




1.02 Contingent Beneficiary


If one or more of my Primary Beneficiaries dies before I die, I direct that any amount due under the Award Agreement described at the top of this form after my death:


_____ Be paid to my other named Primary Beneficiaries in proportion to the allocation given above (ignoring the interest allocated to the deceased Primary Beneficiary); or


_____ Be distributed among the following Contingent Beneficiaries.


_________ % to ______________________________________________________________________________    
(Name)                                                                  (Relationship)
Address: ____________________________________________________________________________________    


_________ % to ______________________________________________________________________________    
(Name)                                                                  (Relationship)
Address: ____________________________________________________________________________________    


_________ % to ______________________________________________________________________________    
(Name)                                                                  (Relationship)
Address: ____________________________________________________________________________________    


_________ % to ______________________________________________________________________________    
(Name)                                                                  (Relationship)
Address: ____________________________________________________________________________________    





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****
Elections made on this form will be effective only after this form is received by [Name] and only if it is fully and properly completed and signed.


Name:  [Name]
Soc. Sec. No.:     ___________________________________________________________________________________
Date of Birth:     ___________________________________________________________________________________
Address: __________________________________________________________________________    
__________________________________________________________________________________________________    
Sign and return this form to [Name] at the address given below
____________________________    __________________________________
Date                    Signature


Return this signed form to [Name] at the following address:
[Name]
Air Transport Services Group
145 Hunter Drive
Wilmington, Ohio 45177


Received on:     _____________________
By: __________________________



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