Document:

exv10w6

 

Exhibit 10.6

ARTICLES OF AGREEMENT

Between

Petroleum Helicopters, Inc.

&

Office & Professional Employees International Union

and its Local 108

Effective June 1, 2001 through May 31, 2004

Revision 7.12.01

 

 

	 	 	 	 	 
	Table of Contents	 	Page	 
	Preamble
	 	 	1	 
	Article 1. Purpose of Agreement
	 	 	2	 
	Article 2. Recognition
	 	 	3	 
	Article 3. Pilot Status
	 	 	4	 
	Article 4. Nondiscrimination
	 	 	5	 
	Article 5. Seniority
	 	 	6	 
	Article 6. Seniority List
	 	 	7	 
	Article 7. Reductions in Work Force
	 	 	8	 
	Article 8. Categories of Aircraft
	 	 	10	 
	Article 9. Job Posting & Bidding
	 	 	11	 
	Article 10. Schedules of Service
	 	 	14	 
	Article 11. Leaves of Absence
	 	 	15	 
	Article 12. Paid Days Off and Banked Days
	 	 	18	 
	Article 13. On the Job Injury/Workers’ Compensation
	 	 	22	 
	Article 14. Bereavement Leave
	 	 	24	 
	Article 15. Jury Duty
	 	 	25	 
	Article 16. Fees and Physical Examinations
	 	 	26	 
	Article 17. Training
	 	 	27	 
	Article 18. Facilities, Equipment and Uniforms
	 	 	31	 
	Article 19. Severance Pay
	 	 	34	 
	Article 20. Moving Expense
	 	 	35	 
	Article 21. Base Pay
	 	 	37	 
	Article 22. Pilot Bonuses
	 	 	40	 
	Article 23. Other Bonuses
	 	 	41	 
	Article 24. Workover
	 	 	42	 
	Article 25. Travel Pay
	 	 	45	 
	Article 26. Per Diem
	 	 	46	 
	Article 27. Insurance Benefits
	 	 	47	 
	Article 28. 401(k) Plan
	 	 	48	 
	Article 29. General & Miscellaneous
	 	 	49	 
	Article 30. Safety/Accident Prevention
	 	 	51	 
	Article 31. Sexual and Workplace Harassment Policy
	 	 	52	 
	Article 32. Environmental Compliance
	 	 	53	 
	Article 33. No Strike, No Lockout
	 	 	54	 
	Article 34. Management Rights
	 	 	55	 
	Article 35. Discipline and Discharge
	 	 	56	 
	Article 36. Grievance Procedure
	 	 	57	 
	Article 37. System Board of Adjustment
	 	 	59	 
	Article 38. Union Representation
	 	 	61	 
	Article 39. Union Bulletin Boards & Communications
	 	 	63	 
	Article 40. Union Membership, Dues, Agency Fees & Checkoff
	 	 	64	 
	Article 41. Savings Clause
	 	 	66	 
	Article 42. Duration
	 	 	67	 

 

 

Petroleum Helicopters, Inc.

Employer Proposals

AGREEMENT

     This Agreement is entered into between Petroleum Helicopters, Inc., hereinafter called
“the Employer,” and Office and Professional Employees International Union, and its Local 108,
hereinafter jointly called “the Union” or “the OPEIU.”

1

 

Article 1. Purpose of Agreement

     1. The purpose of this Agreement is to define the wages, hours and other terms and
conditions of employment of the Flight Deck Crew members (hereinafter called “pilots”) covered by
this Agreement.

     2. No pilot covered by this Agreement will be interfered with, restrained, coerced or
discriminated against by the Employer or the Union, their officers or their agents, because of
membership or non-membership in the union, or any lawful activity under the Railway Labor Act not
in violation of this Agreement.

     3. Whenever the male gender is used in this Agreement, it is understood that it is referring
to both male and female pilots.

     4. This Agreement sets forth the entire understanding and agreement of the parties and may not
be modified in any respect except by writing subscribed to by the parties. This Agreement
supercedes all previous agreements, commitments or practices, oral or written, between the Employer
and the Union and/or the pilots, and expresses all of the obligations of and restrictions imposed
upon each of the respected parties during its term. The waiver of any provision of this Agreement
or any breach of this Agreement by either party during the term of the Agreement shall not
constitute a precedent for the future waiver of any breach or provision. Nothing in this Agreement
shall prohibit the parties from bargaining on any issue they desire if both parties mutually agree
to do so during the term of this Agreement.

2

 

Article 2. Recognition

     1. The Employer recognizes the Union as the exclusive bargaining representative of, and
this Agreement applies only to, all flight deck crewmembers employed by Petroleum Helicopters, Inc.
in the United States, its territories and possessions.

     2. The Employer may subcontract pilots and/or aircraft with pilots (collectively know as
“Subcontracting”) for a period not to exceed one hundred and eighty (180) days per occurrence
during the term of the Agreement when (i) Subcontracting is necessary for the Employer to continue
its operations, (ii) the Employer determines that it does not have sufficient aircraft, or
appropriate aircraft type(s), or it lacks sufficient pilots, or its pilots are not appropriately
trained for such Subcontracting work, (iii) the temporary and occasional use of Subcontracting is
required for Fixed Wing operations and (iv) the Employer does not furlough any pilot as a direct
result of such Subcontracting. It is understood and agreed that nothing in this paragraph shall
prevent the Employer from furloughing or terminating pilots in accordance with the provisions of
this Agreement due to business or economic reasons independent of, and unrelated to Subcontracting.

     3. Notwithstanding Section 2 above, in the event the Employer is required to Subcontract due
to circumstances beyond its control, the Employer may Subcontract for a time not to exceed the
duration of the such circumstance or twelve (12) months, whichever is less. Circumstances beyond
the Employer’s control shall include (i) an act of nature, (ii) a strike affecting the Employer’s
business, (iii) grounding of a significant number of the Employer’s aircraft by a governmental
agency or court, (iv) loss or destruction of the Employer’s aircraft, (v) an act or declaration of
war affecting directly or indirectly the Employer’s operations, or (vi) an owner’s or
manufacturer’s delay in the delivery of aircraft scheduled for delivery.

     4. In the event the employer sells all or part of its helicopter operations to another carrier
during the term of this Agreement, in advance of such sale, the employer shall give notice of the
existence of this Agreement to such successor carrier and shall make reasonable effort to persuade
such successor carrier to agree to the continuation of the economic terms set forth in this
Agreement.

     5. All revenue and all known and recurring miscellaneous flying performed by the Employer will
be performed by pilots on its payroll, except as provided in Sections 2 and 3 above.

3

 

Article 3. Pilot Status

     1. All pilots covered by this Agreement are on probation for the first six months of
their employment by the Employer.

     2. Probationary pilots shall be entitled to all rights and benefits under this agreement
except that such pilots may not utilize the provisions of this Agreement concerning any corrective
actions taken by the Employer in connection with the pilot’s performance or conduct or any
disciplinary actions, up to and including discharge.

     3. After a new pilot completes the Employer’s new employee orientation, he will be introduced
to a union representative for the purpose of discussing union membership.

4

 

Article 4. Nondiscrimination

     1. The Employer and the Union agree to comply with all applicable laws prohibiting
discrimination on the basis of race, color, religion, national origin, sex, age, disability or
Vietnam-era veteran status.

5

 

Article 5. Seniority

     1. There shall be two types of seniority:

	 	A.	 	Company seniority- Company seniority shall be defined as the
pilot’s length of employment from date of hire with the Employer, adjusted for any
breaks in service as defined in Section 2 of this Article. Company seniority shall
be used for determining eligibility for, and the level of, all benefits.
	 
	 	B.	 	Bidding seniority- Bidding seniority shall be defined as the
pilot’s length of employment as a pilot with the Employer.

     2. Company seniority shall be adjusted for any breaks in employment with PHI of one (1) year
or less, except as provided in Article 7. Reduction in Force, Section 6.

     3. If a pilot is assigned to a position not covered by this agreement, he shall have no rights
under this agreement, except that pilots on foreign assignment, pilots on assignment as managers
and supervisors on the date this Agreement is executed, and no more than one pilot elected or
appointed to a position with the Local Union shall continue to accrue company and bidding
seniority. Pilots who are assigned to management or supervision following the date this Agreement
is executed shall continue to accrue bidding seniority for one (1) year after being placed in the
position, and shall thereafter retain all such seniority.

     4. A pilot shall lose all seniority rights and have his name removed from the seniority list
under the following conditions:

	 	A.	 	resignation or retirement;
	 
	 	B.	 	discharge;
	 
	 	C.	 	absent from work for forty-eight (48) consecutive hours without proper
notification of the reason to the Director of Operations or his designee, unless
the Employer determines the pilot is physically incapable of providing the Employer
with the proper notification of his absence;
	 
	 	D.	 	failure to return to work from an authorized leave of absence in the
time provided by the Employer, giving a false reason for obtaining a leave of
absence or accepting gainful employment while on a leave of absence (when the
employment was not specifically authorized by the Employer);
	 
	 	E.	 	failure to inform Human Resources in person or by certified mail of his
intention to return to work or failure to return to work on or before a date
specified in the notice of recall as provided for in Article 7, Section 8(A); or
	 
	 	F.	 	a pilot who is furloughed and who is not recalled to service with the
Employer within thirty-six (36) months from the date of furlough.

6

 

Article 6. Seniority List

     1. The pilot seniority list shall consist of the seniority number, name and seniority
dates of all pilots covered by this agreement. The Employer will post the seniority list at all
work locations where pilots covered by this agreement are assigned. A copy of the seniority list
will be furnished to the Union in computer floppy disk form with leave of absence and new hire
designations.

     2. When two or more pilots are employed on the same date, they shall be placed on the
seniority list according to their date of birth with the eldest pilot having the most seniority.
If two or more pilots are employed on the same date and have the same date of birth, the pilot who
has the lowest last four digits in his social security number shall have the most seniority.

     3. The Employer agrees to update and distribute as described above the seniority list once
each month with the effective date of this agreement. A pilot shall have a period of thirty (30)
days after the posting of the seniority list to protest to the Employer any omission or incorrect
posting affecting his bidding seniority. Once the thirty (30) day period has expired without a
protest, a pilot’s posting shall be considered correct and shall not be subject to further protest
unless the omission or incorrect posting was the result of a clerical error on the part of the
Employer.

7

 

Article 7. Reductions in Work Force

     1. If there is a loss or reduction of an Aeromedical contract, the affected pilot(s)
assigned to that contract will be placed in the Oil & Gas pilot pool, except as described in
section 2 below. If there is a loss or reduction of an Oil & Gas contract, the affected pilot(s)
assigned to that contract will be placed in the Oil & Gas pilot pool. If a reduction in force is
necessary in any other business unit, the affected helicopter pilot(s) will be placed in the Oil &
Gas pilot pool. If a reduction in force is necessary in Oil & Gas, a pilot’s bidding seniority
shall determine the order of layoff, with the least senior pilot laid off first.

     2. Pilots hired for a specific contract (i.e., Aeromedical) may be exempted from general
layoffs; however, they may be subject to layoff upon termination of that specific contract.

     3. If the customer owns or dry leases the aircraft and retains the right to select pilots for
these aircraft, the customer retains the right to exempt pilots from layoff.

     4. The Employer shall provide the Union with reasonable notice of an impending reduction in
force affecting pilots under this Agreement, in order to permit the parties to discuss alternative
options. Such notice and discussions shall be waived when circumstances beyond the control of the
employer require immediate action.

     5. Pilots with seniority rights will be recalled from furlough into the pilot pool in bidding
seniority order, with the most senior laid off pilot being recalled first. In the event vacant
jobs in Aeromedical cannot be filled from within, furloughed pilots will be offered such jobs in
bidding seniority order. However, furloughed pilots, who would be required to relocate, will not
be removed from the seniority list if they choose not to accept the vacant Aeromedical job offered.

     6. Pilots who are furloughed shall continue to accrue bidding seniority for as long as they
have seniority rights. They will accrue company seniority up to a maximum of thirty (30) days
while on furlough.

     7. Pilots on furlough are required to file their proper mailing address and telephone
number(s) with Human Resources at the time of the layoff and will notify Human Resources of any
changes to this information within ten (10) calendar days.

     8. Furloughed pilots shall be notified of their recall by telephone or certified mail to the
most recent contact information provided as per Section 7 above. The date of recall notification
shall be the date the Employer contacts the furloughed pilot by telephone or the pilot acknowledges
receipt of the certified letter. Written notice to the pilot’s last address of record shall be
conclusive evidence of notice to that furloughed pilot.

	 	A.	 	Each pilot accepting recall shall answer his recall notice no later
than five (5) calendar days after the Employer contacts the pilot or the date the
pilot signs for
the certified letter, whichever is earlier. Pilots who fail to respond to a recall

8

 

	 	 	 	notice within the time limits set forth above, pilots who refuse recall, or pilots
who reject a recall notice shall forfeit all recall rights and have their name
stricken from the seniority list.
	 
	 	B.	 	A furloughed pilot who is recalled must report to work no later than
fourteen (14) calendar days after the date of recall notification to report to
duty. Nothing shall prevent the Employer from beginning recurrent or
requalification training for recalled pilots prior to the fourteen (14) day period
if a sufficient number of pilots agree to return from recall early.

     9. Seniority and recall rights shall terminate if a laid off pilot is not recalled within
thirty-six (36) months from the commencement of his lay off.

9

 

Article 8. Categories of Aircraft

     1. Company aircraft shall be divided into three (3) categories consistent with FAA
definitions:

	 	A.	 	Small Aircraft: A single engine or multi-engine aircraft,
type-certificated to carry nine (9) passengers or less, and with a maximum
certified gross weight of 7000 pounds or less.
	 
	 	B.	 	Medium Aircraft: An aircraft type-certificated to carry more than nine
(9), but less than twenty (20) passengers, and with a maximum certified gross
weight of more than 7000 pounds, but less than 12,500 pounds.
	 
	 	C.	 	Large Aircraft: An aircraft type-certificated to carry more than nine
(9) passengers, and with a maximum certified gross weight of 12,500 pounds or
greater.

10

 

Article 9. Job Posting & Bidding

     1. In the event there is a non-temporary job opening, a Job Posting will be issued,
normally within seven (7) days. The Job Posting will normally be posted for a minimum of fourteen
(14) days and will include any terms of the job opening such as pay, work schedule, experience and
qualification requirements, location(s), application and other pertinent job requirements
information. The selection will be made within seven (7) days after the closing of the job
posting, subject to customer acceptance of the pilot(s) and contract award.

     2. A Job Opening will exist when the employer determines that a need exists for an aircraft
transition, upgrade or specialized training, or that a vacancy exists on a non-temporary customer
contract. Transitions and specialized training required for replacement aircraft or ad hoc specials
will be posted in accordance with this article, and will include any conditions such as base,
regional or area requirements, pool assignment, workover expectations, and reassignment obligations
and limits thereto (normally not to exceed twelve (12) months).

     3. A pilot applicant shall be considered qualified if he has been previously trained in
aircraft type and has the specialized training; and is current in duty position and meets customer
and employer minimum experience requirements. For transition and upgrade, qualified means that the
pilot holds appropriate FAA certification and duty position.

     4. A job which is contracted for one hundred eighty (180) days or less is considered
temporary. Temporary jobs expected to last more than sixty (60) days will be posted except as
provided for in Section 11 (temporary reassignments) of this Article. A temporary job filled by
posting will not be re-posted in the event it becomes non-temporary, and the pilot awarded the job
through the temporary posting will remain on that job unless he opts to be reassigned to the pilot
pool, or he successfully bids on another job.

     5. A non-temporary job vacancy is created when:

	 	A.	 	A new customer contract is obtained, unless contract requirements
dictate that specific pilots fill the job, or
	 
	 	B.	 	A pilot on a non-temporary job accepts another position, or
	 
	 	C.	 	A pilot is removed from a job.

     6. A vacancy does not exist if:

	 	A.	 	A customer changes aircraft type, and requests that the assigned
pilot(s) remain on the job, or
	 
	 	B.	 	The pilot on a non-temporary job is either on an extended leave (i.e-
sick leave, occupational injury leave or personal leave) for ninety (90) days or
less; or the pilot is on a special assignment or temporary assignment for one
hundred eighty (180) days or less, or
	 
	 	C.	 	The customer owns or dry leases the aircraft and retains the right to
select pilots for these aircraft. If the customer requests that the employer select
the pilot(s), then the job will be posted in accordance with this section.

11

 

	7.	 	Nothing in this Article prevents the Employer from hiring pilots into the pilot
pool.
	 
	8.	 	Downgrades from a medium or heavy ship assignment require the approval of the
Chief Pilot or Director of Operations.
	 
	9.	 	All job openings will be posted and awarded by the following method:

	 	A.	 	A job posting is issued and posted at all domestic company locations.
	 
	 	B.	 	The Employer will use the following criteria to determine if a pilot
meets the requirements to be considered for a job opening:

	 	1)	 	The customer must accept the pilot applicant, and
	 
	 	2)	 	The Employer reserves the right to require a minimum of six (6)
months in a previously awarded job; or twelve (12) months in a previously
awarded job involving an upgrade or transition with a pay increase; or
twenty-four (24) months in a previously awarded job involving a company paid
relocation. Except for the six month requirement and a company paid
relocation, nothing in this language prevents a pilot from an upgrade or
promotion opportunity.

	 	C.	 	The job opening is awarded to the qualified pilot with the greatest
bidding seniority.
	 
	 	D.	 	If no qualified applicant submits a bid, the employer shall award the
job using the following criteria:

	 	1)	 	In EMS:

	 	a)	 	Select and qualify the senior applicant who meets
customer requirements.
	 
	 	b)	 	Select and qualify the senior furloughed pilot who
meets customer requirements.
	 
	 	c)	 	Hire from outside the company as necessary to fill job
opening.

	 	2)	 	In all other business units:

	 	a)	 	Transition the senior applicant who is otherwise
qualified except as to aircraft type if the transition or specialized
training does not involve a pay increase.
	 
	 	b)	 	Select the least senior qualified pilot from the pilot
pool.
	 
	 	c)	 	Select and qualify the senior applicant who meets
customer requirements (such as aircraft transition with a pay increase or
upgrade).
	 
	 	d)	 	Select and qualify the least senior pilot from the
pilot pool who meets customer requirements.
	 
	 	e)	 	Select the least senior qualified pilot.
	 
	 	f)	 	Select and qualify the least senior pilot who meets
customer requirements.
	 
	 	g)	 	Select and qualify the senior furloughed pilot who
meets customer requirements.
	 
	 	h)	 	Hire from outside the company as necessary to fill job
opening.

12

 

     10. Before removing a pilot from a previous bid and assigned job, the Employer will first
attempt to get the customer to modify job requirements to allow a pool pilot to fill the job until
such time as an applicant can be trained or otherwise qualified to fill the job.

     11. The Director of Operations may temporarily assign a qualified pool pilot to fill an
immediate or new contract job opening until a job posting and qualifications can be accomplished.
In the event a qualified pool pilot is not available, the Director of Operations may assign another
qualified pilot. This assignment will normally not exceed ninety (90) days, but may be extended an
additional ninety (90) days for extreme and unusual operational necessity. Upon completion of the
assignment, the pilot may return to his regularly assigned job if that job still exists. His
regularly assigned job while he is on reassignment will be filled on a temporary basis. While on
such assignment, the pilot will be paid per diem at the rate specified for pool pilots, so long as
he is assigned to a job at a base other than his regularly assigned base.

     12. Except as otherwise provided in this Article, pilots shall not be removed from their
regularly assigned jobs to cover vacant jobs for more than three (3) consecutive workdays, not to
exceed three (3) workdays per hitch and a total of nine (9) workdays per calendar quarter.

     13. A pool pilot may submit a request for a base assignment, and Scheduling will make a good
faith effort to honor such request on a seniority basis.

     14. In any case in which a pilot is interviewed by a customer for a position, the Employer
will provide the customer with the training records, medical certificate and any commendations
and/or disciplinary actions in the pilot’s personnel or operations file. No other records will be
provided unless requested in writing by the customer.

13

 

Article 10. Schedules of Service

     1. Pilots will work a schedule that complies with applicable Federal Air Regulations
(FARs) and will essentially be one of the following types of work schedules:

	 	A.	 	An earned day off for each day worked (e.g.- 6/6, 7/7, 14/14, 4/3/3/4,
5/2/5/9);
	 
	 	B.	 	An earned day off for each two days worked (e.g.- 8/4, 10/5, 14/7);
	 
	 	C.	 	Two days off for each 5 days worked (8 1/2 hour duty day where the pilot
is required to remain at the base);
	 
	 	D.	 	Two days off for each 5 days worked (14 hour duty day where the pilot
is not required to remain at the base when there is no flight requirement); and
	 
	 	E.	 	Continuous duty (e.g.- fire fighting, and other temporary assignments
usually not exceeding ninety (90) days). The Employer will attempt to provide the
pilot on continuous duty two (2) days rest for each fourteen (14) duty days.

          The provisions of this Article are intended to define a pilot’s pay in a biweekly payperiod
and should not be construed as a guarantee of hours of work or hours paid in a payperiod or as a
limitation of the Employer’s right to schedule work or change the workday, the workweek, or the
work schedules as required by operations. However, the Employer agrees to confer with the Union
for any work schedule which deviates from those listed above, including the appropriateness of any
schedule bonus.

     2. The standard work schedule for Oil & Gas operations is the 7/7 schedule (i.e.- 7 days on
and 7 days off). Any job assignment deviating from the 7/7 schedule, including those other work
schedules listed above, shall be filled according to Article 9. Job Posting & Bidding Article.

     3. The Employer will make assignments of pilots in compliance with FAR required flight duty
time limitations and rest periods.

     4. A pilot’s work days shall not be changed without at least five (5) calendar days notice
unless caused by extreme or unusual operational changes or upon mutual agreement between the pilot
and the Employer.

     5. A pilot may leave his duty location, with his manager’s approval, if it is determined that
no flying or other job requirements are foreseeable for the remainder of the duty day.

14

 

Article 11. Leaves of Absence

     1. A Leave of Absence (LOA) is intended to account for a reasonable period of time that a
pilot may be required to be absent from the job for reasons other than VSTO, STO, or paid
bereavement leave. A LOA may fall into one of the following categories:

	 	A.	 	Informal LOA (a reasonable time not to exceed 30 days) without pay may
be granted to a pilot for urgent personal matters. Some examples include attending
special schools for personal benefit, a need to handle family affairs associated with
the death or serious illness of a close family member, or other special reasons.
Except as approved by the Director of Human Resources, a pilot may be granted no more
than one (1) Informal LOA in a 2-year period.
	 
	 	B.	 	Formal LOA (a reasonable time up to one (1) year, or in cases of
non-occupational injury or illness which may be extended an additional year if the
Employer and the physician agree that the pilot is likely to return to active duty
during the extension) without pay may be granted to a pilot to extend the time they are
gone from work for recuperation from an injury or illness, or to allow a pilot with
insufficient paid time off to fulfill the 90 day waiting period for the Long Term
Disability Plan. A pilot on a Formal LOA may be required by the Employer to provide
periodic proof that he remains disabled from work. Except as approved by the Director
of Human Resources, a pilot may be granted no more than one Formal LOA in a 2-year
period.
	 
	 	C.	 	Military LOA- Military leaves of absence and reemployment rights upon
return from such leave shall be granted in accordance with applicable laws. All orders
for military duty, including National Guard and Reserve duty, shall be provided in
writing to the Director of Operations, within four (4) calendar days of receiving the
orders. A pilot on a military leave shall retain and accrue company and bidding
seniority.
	 
	 	D.	 	Family & Medical LOA (leave granted under the Family and Medical Leave
Act) will be granted to eligible pilots as required by law. The Employer’s separate
policy on leaves associated with the Family and Medical Leave Act will apply in these
type leaves of absence. A pilot on FMLA will continue to accrue all seniority rights.
In a case of a serious non-occupational health condition of a pilot who does not return
to work within the twelve (12) week period provided for under the FMLA, he will be
placed on a Formal Leave of Absence.

     2. A pilot who wishes to apply for a leave of absence must submit his request in writing to
his supervisor. This written request must include the expected duration of the leave, the purpose
of the leave and where the pilot may be contacted during the leave. It is the pilot’s
responsibility to keep Human Resources informed of any changes in his contact information for the
duration of the approved leave.

     3. All requests for leaves of absence must be submitted in writing and must be approved by the
Department Manager and the Director of Human Resources. Except as approved by the Director of
Human Resources, a pilot will not be granted a leave of absence (except a Military

15

 

LOA or Workers Compensation LOA) without first using all VSTO or in the case of a Formal leave
of absence for illness or injury without first using all STO.

     4. Prior to returning to duty from medical leave, a pilot may be required to present a
physician’s statement to the Employer verifying that he is medically fit to perform all pilot
duties.

     5. A pilot on any non-medical leave of absence may continue certain benefits, if any, such as
Medical, Dental, Life Insurance, and Long Term Disability/Loss of License for a maximum of one (1)
month at premium rates comparable to what other represented pilots are paying. A pilot on any
non-occupational leave of absence may continue certain benefits, if any, for a maximum of six (6)
months at premium rates comparable to what other represented pilots are paying.

     6. Continued pilot contributions and Employer matching in the 401(k) plan, if any, are based
exclusively on receipt of wages in any payperiod.

     7. A pilot will continue to accrue VSTO and all seniority rights for a maximum of 90 days for
any leave of absence. However, a pilot on a Military Leave of Absence, Worker’s Compensation Leave
of Absence and non-occupational serious illness or injury will continue to accrue company and
bidding seniority for the duration of the leave.

     8. Approval of any leave of absence for a probationary employee rests exclusively with the
Employer. If a pilot is granted a leave of absence during his probationary period, his
probationary period shall be extended accordingly.

     9. In the event of a reduction-in-force, a pilot on a leave of absence who would otherwise be
laid off will have his leave of absence cancelled. The pilot will be notified that his rights
under this agreement have been changed to those of a furloughed pilot.

     10. A pilot returning from a leave of absence will be returned to his duty position if it
still exists or any other vacant position where his seniority and qualifications permit. Any pilot
returning from a leave of absence who requires training prior to returning to flying will be
scheduled for required training within seven (7) duty days or the next scheduled class from the
time the pilot notifies the Employer he is returning from such leave and has met all requirements
to return to flight duty. Pay shall resume when the pilot commences training.

     11. All leaves of absence shall specify the date on which the pilot will return to duty unless
mutually agreed otherwise or by operation of law.

     12. All leaves of absence shall be without pay unless otherwise specified in this agreement.

     13. Failure of any pilot to return to active status at the end of any leave of absence shall
be deemed a voluntary resignation and his name will be removed from the seniority list.

16

 

     14. Any pilot on a leave of absence who enters the services of another employer or who enters
into a business of his own without first obtaining written permission from the Employer, will be
terminated and will forfeit his seniority rights.

17

 

Article 12. Paid Days Off and Banked Days

PAID TIME OFF AND LEAVE ACCURAL

     1. There will be two types of leave accrual banks: a Vacation and Scheduled Time Off Bank
(VSTO) and a Sick Time Off (STO) Bank. These two banks are used to give a pilot more flexibility
and control for his paid time off.

VACATION AND SCHEDULED TIME OFF

VSTO Accrual

     1. The number of VSTO days earned each year is dependent on a pilot’s years of active service
with the Employer.

	 	 	 	 	 	 
	Completed Years of Active	 	 	 
	Service
As A Pilot
	 	Accrual Units
	1-5 Years

	 	 	 	10	 
	6 Years

	 	 	 	11	 
	7 Years

	 	 	 	12	 
	8 Years

	 	 	 	13	 
	9 Years

	 	 	 	14	 
	10-11 Years

	 	 	 	15	 
	12-13 Years

	 	 	 	16	 
	14-15 Years

	 	 	 	17	 
	16-17 Years

	 	 	 	18	 
	18-19 Years

	 	 	 	19	 
	20 Years and More

	 	 	 	20	 

     To compute work days vacation due:

	 	–	 	5&2, 8&4, 10&5 schedules: Multiply accrued units by 1.0
	 
	 	–	 	All one for one schedules: Multiply accrued units by 0.7 & round to nearest day

     2. In order to accrue VSTO days, a pilot must be an active pilot on the payroll for at least
fifteen (15) days in a month.

     3. A new hire pilot will accrue VSTO in a month only if he is on the payroll prior to the
fifteenth (15th) of the month.

     4. A pilot does not earn and is not eligible to take VSTO days until he completes one (1) year
of active duty with the Employer.

Scheduling and Bidding VSTO

18

 

     1. VSTO is to be used for scheduled time off. A pilot may request up to seven (7)
day-at-a-time (DAT) VSTOs per year. Approval of the individual DAT VSTO days is based on
operational needs. The request must be submitted to the Scheduling Department prior to the end of
a hitch for use in the next hitch. DAT will be granted on a first-come, first-serve basis.

     2. A pilot may bid all or part of his VSTO accrual as full weeks of vacation. In cases where
more than one pilot desires full week VSTO days on the same work hitch and the Employer must limit
such request due to operational needs, the full week VSTO days will be awarded to the pilot(s) with
the greatest company seniority. The Employer may limit the number of pilots permitted time off at
any one time due to operational needs.

     3. Full week requests must be made at least sixty (60) days in advance. Approvals will be
given to pilots no less than thirty (30) days prior to the start date of the pilot’s requested
vacation.

     4. A pilot may request the Employer purchase up to eighty (80) hours accrued VSTO once each
twelve months. In this case the pilot must submit his request in writing to the Director of Human
Resources. A pilot may accrue a maximum of three hundred forty-four (344) hours VSTO at his
anniversary date.

     5. A pilot may elect to use his VSTO bank to supplement any Workers Compensation payments due
an injury/illness incurred on the job with the Employer as described in Article 13, On-the-job
Injuries/Worker’s Compensation.

     6. All VSTO days are paid at a pilot’s applicable daily rate, except as provided for by
Employer policy.

VSTO Cancellation due to Operational Necessity

     1. In the event VSTO days are canceled due to operational necessity, the Employer shall notify
the affected pilot. Cancellations shall first be offered to volunteers in reverse seniority order.
If an insufficient number of pilots voluntarily accept cancellation, remaining cancellations shall
be involuntarily cancelled and assigned in inverse seniority order. If a vacation is involuntarily
cancelled by the Employer or the pilot voluntarily cancels his vacation at Employer request, the
pilot shall be paid one hundred and fifty (150) percent of his base pay for that period of
scheduled vacation that he actually works.

     2. When a full week’s VSTO is canceled, the pilot and the Employer shall attempt to find a
mutually agreeable substitute block during the current year. In the event a mutual agreement is
not reached, the pilot may elect to receive compensation in lieu of vacation. In this case, the
pilot will not be limited to the maximum of eighty (80) hours Employer purchased VSTO as described
in Section 4 above.

     3. In the event the Employer cancels a pilot’s full week VSTO for operational needs and
it was involuntary on the pilot’s part, all non-refundable vacation deposits which the pilot,
with the assistance of the Employer, is unable to recover shall be reimbursed to the pilot.
In
order to

19

 

receive reimbursement, the pilot shall provide the Employer with proof of the deposit.

Treatment of VSTO Upon Termination

     1. In the event a pilot voluntarily leaves the Employer (including retirement or permanent
disability), he will be paid for his accrued VSTO days provided he has given the Employer two weeks
notice of his departure.

SICK TIME OFF (STO)

     1. Sick Time Off (STO) Days are granted to a pilot to provide an opportunity for him to
recover from an illness or injury. A pilot may elect to use his STO bank to supplement any Workers
Compensation payments due to an injury/illness incurred on the job with the Employer as described
in Article 13, On-the-job Injuries/Worker’s Compensation.

     2. The number of STO days accrued each year is dependent on a pilot’s years of active service
with the Employer according to the following schedule:

	 	 	 	 	 	 
	Completed Years of Active	 	 	 
	Service
As A Pilot
	 	Accrual Units/year
	6 months but less than 1 Year

	 	 	 	1	 
	1 Year but less than 2 Years

	 	 	 	1	 
	2 Years but less than 3 Years

	 	 	 	2	 
	3 Years but less than 4 Years

	 	 	 	3	 
	4 Years and over

	 	 	 	4	 

     To compute work days STO accrued:

	 	–	 	5&2, 8&4, 10& 5 schedules: Multiply accrued units by 5
	 
	 	–	 	All one for one schedules: Multiply accrued units by 3.5

     3. A pilot may accrue a maximum of 560 hours STO, except that any pilot who has greater than
this maximum at the time this agreement is executed shall be grandfathered with his accrued STO and
will not accrue any additional STO until such time as his total STO hours drops below the 560 hour
maximum. STO days will be accrued to a pilot only after he has completed six (6) months of active
duty with the Employer.

     4. All STO days are paid at a pilot’s applicable daily rate, except as provided for by
Employer policy.

     5. Unscheduled absences are taken in the following order:

	 	A.	 	Unscheduled absences due to personal illness or injury off the job will
be taken from the STO Bank.
	 
	 	B.	 	Once the STO Bank is exhausted, a pilot may use his remaining unused
VSTO days.
	 
	 	C.	 	Unbid accrued VSTO days must be used for any additional unscheduled
absences.

20

 

     6. Use of VSTO and STO on Family Medical Leave shall be required pursuant to Family Medical
Leave Act policy of the Employer. Use of VSTO days for other leaves of absence will be pursuant to
the Employer’s leave policies.

     7. A pilot who is out on STO days for seven (7) consecutive work days will be required to
provide a physician’s statement at that time and on a monthly basis until he is released by the
physician to return to active duty. The pilot is responsible to ensure the FAA has cleared the
pilot to return to active duty if such illness or injury requires this FAA clearance.

     8. Maternity leave and disabilities caused or contributed by pregnancy, miscarriage, abortion,
childbirth and recovery therefrom shall be treated as time covered by STO.

     9. Pilots and the Union share in the responsibility for preventing unnecessary absences and
shall assist the Employer in its efforts to minimize any abuse of excessive absenteeism.

	 	A.	 	A pilot who cannot perform his duties due to a non-occupational
injury or illness shall immediately report such absence and the reason for it
to his immediate supervisor. A pilot shall personally contact his supervisor
on a daily basis during his scheduled work hitch unless physically unable to do
so and shall advise the supervisor of his expected date of return and a
telephone number where he can be reached during his absence.
	 
	 	B.	 	Upon reasonable suspicion of misuse of such leave, the Employer
reserves the right to require a physician’s certificate or an examination by a
Employer-designated physician. To the extent any Employer-requested
examination is not covered by insurance, it shall be paid for by the Employer
provided the pilot submits receipts for reimbursement in a timely manner.

21

 

Article 13. On the Job Injury/Workers’ Compensation

     1. A pilot is eligible for worker’s compensation benefits with respect to injuries or
illnesses arising out of and in the course of employment with the Employer, provided that the pilot
injured on the job reports the injury immediately to his supervisor. If the injury is not
immediately apparent, the pilot must notify his supervisor as soon as the injury becomes apparent.

     2. A pilot injured on the job will receive his worker’s compensation benefits in accordance
with applicable law. The Employer will make whole any lost wages for the pilot during the
statutory waiting period to the extent that such wages are not paid by the Worker’s Compensation
carrier or the state.

     3. The pilot shall inform his supervisor of the injury and immediately complete the First
Report of Injury and give to the supervisor (unless urgent medical care is required for the pilot
in which case this report shall be completed as soon as practical). If the pilot refuses medical
attention, he must complete and sign the refusal of care form and give it to his supervisor.

     4. A post-accident drug and alcohol screen will be performed if the injury is a direct result
of the actions of the pilot or if required by Company policy, DOT or FAA regulations.

     5. Pilots unable to report to work on their next scheduled workday due to an On the Job Injury
(OJI) will be placed on Worker’s Compensation (WC) leave of absence. VSTO and STO days will not be
charged to a pilot who is injured on the job. The pilot is eligible to use Long-Term Disability
insurance, if any, at the end of the waiting period. A Worker’s Compensation leave and leave under
the FMLA shall run concurrently in cases of on-the-job injuries or illness, except such leaves
shall not prevent the pilot from obtaining an additional leave for other reasons covered by the
FMLA within the twelve (12) month period prescribed by law.

     6. A Workers Compensation leave of absence of up to one (1) year will be granted to a pilot
who experiences an on-the-job injury/illness (OJI) and is medically required to be absent from
work. If the pilot is unable to return to work following the one year leave, the Employer will
consult with the pilot’s physician and Aeromedical Medical Examiner in a review of the pilot’s
medical prognosis to determine if an extension of the leave is necessary, in which case the leave
may be extended not to exceed thirty-six (36) months from the date of the injury.

     7. WC leave will have no effect on the pilot’s seniority with the Employer and the pilot will
accrue VSTO while on WC leave for up to one year. All insurance benefits, if any, shall continue
to be available to the pilot on the same basis as other active represented pilots for a maximum of
twelve (12) months of WC leave. If the pilot continues on Workers Compensation leave beyond twelve
(12) months, he may continue his insurance benefits at the same premium rate as under COBRA.

22

 

     8. A pilot on WC leave will contact his Supervisor or Human Resources weekly to update his
progress and discuss returning to work.

     9. If the pilot is unable to return to active duty, either in a restricted or unrestricted
capacity, at the end of his Worker’s Compensation leave of absence, his employment will be
terminated.

     10. The Employer may require an injured pilot to submit to a physical examination at the
Employer’s expense.

TRANSITIONAL WORK POLICY

     1. At the Employer’s discretion, a pilot on WC leave may be offered, and he may accept, a
transitional work assignment within the restrictions placed on the pilot by the treating physician.
Human Resources and the supervisor will work with the physician to determine if the pilot’s
restrictions allow him to perform the transitional work.

     2. If the pilot is unable to return to work in his regular job, but can perform other duties
beneficial to the organization, the supervisor working with Human Resources may temporarily assign
the pilot to a transitional work assignment which falls into one of the following categories:

	 	A.	 	he temporarily fills a vacant position;
	 
	 	B.	 	he performs work which will offset overtime or vacation.;
	 
	 	C.	 	he performs work which reduces the need for contractors or temporary pilots; or
	 
	 	D.	 	he performs project work beneficial to the Employer.

     3. This arrangement will be reviewed by the Supervisor and Human Resources with the treating
physician at least twice a month to determine if the pilot is able to return to full duty.

     4. If the pilots regular rate of base pay is within the pay range for the temporary
assignment, then the pilots base pay shall not be reduced, otherwise the Supervisor working with
Human Resources will determine an appropriate pay rate.

     5. It is the sole discretion of the Employer to return an injured/disabled pilot to work prior
to their full medical release and to determine duration of the accommodation.

23

 

Article 14. Bereavement Leave

     1. The provisions of this section are intended to provide pilots with paid leave, if
needed, in cases of death of a member of the pilot’s immediate family while the pilot is scheduled
to work.

     2. Paid time may be granted to a pilot for a death to a member of the pilot’s immediate family
while the pilot is scheduled to work. Immediate family is defined as: Parent (or legal guardian),
Sister, Brother, Spouse, Children, Grandparents, Mother-in-Law, or Father-in-Law.

     3. The Employer will grant bereavement leave for the death of a pilot’s immediate family.
This leave shall be granted for up to three (3) consecutive days for each occurrence, provided
however, that such three day period must include the day of the funeral, or absent a funeral, a
memorial service. Pilots will be paid for each duty day missed during this three day period. A
pilot must receive Employer approval for any additional time off work for bereavement leave and the
pilot may use accrued VSTO to cover his pay for such additional time off.

     4. The pilot shall provide, and the Employer will accept, any reasonable proof of death and
verification of the date of the funeral or memorial service.

24

 

Article 15. Jury Duty

     1. Jury Duty is considered an authorized absence with regular pay. Any monies received
by a pilot from the court for Jury Duty shall be signed over to the Employer.

     2. A copy of the jury summons should be forwarded to the Human Resources Department

     3. Jury Duty pay is not applicable when a pilot is on leave of absence, VSTO/STO or layoff.

     4. In the event a pilot is released from Jury Duty on a duty day, he shall be required to
return to his base provided the court is located within reasonable proximity to the base and he has
at least six (6) hours remaining in his duty day.

     5. If a pilot is called for Jury Duty twice within a twelve (12) month period in jurisdiction
where citizens are exempt on the second call within the twelve (12) period, the Employer is not
obliged to pay for Jury Duty.

     6. Pilots under subpoena for reasons other than those benefiting the Employer or jury duty,
will be charged VSTO. When VSTO is not available, the time off will be without pay.

25

 

Article 16. Fees and Physical Examinations

     1. It shall be the responsibility of each pilot to maintain an appropriate and current
FAA medical certificate, and to provide a copy of this certificate to the Employer by the
20th of the month in which it is due.

     2. It shall be the responsibility of each pilot to maintain the appropriate FAA pilot
certificate(s) required for his duty position. The pilot shall provide the most current
certificate(s) to the Employer, and immediately report any changes that affect the validity of
those certificates.

     3. It shall be the responsibility of each pilot to arrange his required medical examination as
required by the FAA by a qualified aeromedical examiner of the pilot’s choice. Such medical
examinations are to be scheduled and conducted on the pilot’s off duty time. The pilot is
responsible for all costs associated with these medical examinations to the extent that these costs
are not covered by the wellness benefit under the Employer medical insurance, if any.

     4. When the Employer believes that there are grounds to question a pilot’s physical or mental
condition to remain on flight status, the Employer may require that such pilot be examined by a FAA
designated aeromedical examiner (AME) selected by the Employer. The Employer shall pay for this
medical examination or tests required by the Employer pursuant to this Article. The pilot agrees
to sign a medical release to allow a copy of the results to be given to the Employer and the pilot
shall also be provided a copy of this report. This report will state specifically if the pilot is
unable to perform his duties.

     5. A pilot who fails to pass an Employer’s medical examination may have a review of the case.
Such review will be conducted by the Medical Certification Branch of the FAA. The pilot may, at
his expense, have a second medical examination conducted and submitted along with the Employer’s
medical examination to this branch of the FAA.

26

 

Article 17. Training

     1. For the purposes of this agreement, the following terms apply to pilot training and
duty position assignment:

	 	A.	 	Initial New Hire Training. This training category is for newly hired
pilots who have not had previous experience with the Employer or rehires who are
not eligible for recurrent training. It also applies to pilots employed by the
Employer who have not previously held a crewmember position.
	 
	 	B.	 	Initial Equipment Training. This category of training is for pilots who
have been previously trained and qualified for a duty position by the Employer (not
new hires) and who are being reassigned for any of the following reasons:

(1) For Part 135 operations, the crewmember is being reassigned in one of the
following circumstances:

a) Reassignment to a different duty position or a different aircraft type
and the crewmember has not been previously trained and qualified by the
Employer for that duty position and aircraft type.

b) Reassignment to an aircraft of a category or class for which the
crewmember has not previously qualified with the Employer.

	 	C.	 	Transition Training. This category of training is for a pilot who has
been previously trained and qualified for a specific duty position by the Employer
and who is being assigned to the same duty position on a different aircraft type.
	 
	 	D.	 	Upgrade or Promotion Training. This category of training is for a pilot
who has been previously trained and qualified as First Officer, IFR (SIC or second
in command) by the Employer and is being assigned as a Captain, IFR (PIC or pilot
in command) to the same aircraft type for which the pilot was previously trained
and qualified.
	 
	 	E.	 	Recurrent Training. This category of training is for a pilot who has
been trained and qualified by the Employer, who will continue to serve in the same
duty position and aircraft type, and who must receive recurring training and/or
checking within an appropriate eligibility period to maintain currency.
	 
	 	F.	 	Requalification Training. This category of training is for a pilot who
has been trained and qualified by the Employer, but is not current to serve in a
particular duty position and/or aircraft due to not having received recurrent
training and/or a required flight or competency check within the appropriate
eligibility period. Requalification training is also applicable if a crewmember
fails a required test or check.
	 
	 	G.	 	Specialized Training. This is training conducted for pilots who are
assigned to a job they have not previously flown for the Employer or is
supplemental training. Some examples, but not a complete list, of specialized
training are; fire fighting, long line, mountain, EMS, Offshore, and rescue
hoisting; and some examples of supplemental training are water survival and
customer required training.
	 
	 	H.	 	Duty Position: The functional or operating position of a crewmember.
For purposes of this agreement, duty positions are Captain, IFR; First Officer,
IFR; and Captain, VFR.

27

 

     2. When it becomes necessary to transition or upgrade (promote) pilots, bidding seniority
shall be given priority to the extent possible subject to job and customer requirements.

     3. Recurrent Training

	 	A.	 	Recurrent training will be conducted in accordance with the Employer’s
FAA approved training program. Pay for recurrent training will be in accordance
with Article 21, Section 9.
	 
	 	B.	 	Each month the Employer will publish a list of those who are scheduled
for recurrent training; however, it is the pilot’s responsibility to know when his
recurrent training and/or checkrides are due, and to notify the director of
training if he has not been scheduled at the appropriate time. In the event a
pilot is unable to attend training on the day(s) scheduled, he will notify the
director of training or his representatives as far in advance as possible. If a
mutually acceptable date cannot be agreed upon by the pilot and the Director of
Training, the pilot shall be obligated to attend on the originally scheduled
date(s).

     4. Transition, Upgrade, and Initial Equipment Training, and Specialized Training

	 	A.	 	Transition, Upgrade, and Initial Equipment training will be conducted in
accordance with PHI’s FAA approved training program. Pay for Transition, Upgrade,
and Initial Equipment training will be in accordance with Article 21, Section 9.
	 
	 	B.	 	A pilot who fails training during an upgrade, transition, initial
equipment or specialized course will not be eligible to reapply (in writing) for
that training for six (6) months unless approved by the Chief Pilot, the Director of
Operations or their representative. A second failure of an upgrade, transition,
initial equipment training or specialized course will make the pilot ineligible for
that course for at least twelve (12) months, and only then with the approval of the
Chief Pilot, the Director of Operations or their representative.

     5. Initial New Hire Training

	 	A.	 	Initial New Hire training will be conducted in accordance with PHI’s FAA
approved training program. Pay for Initial New Hire will be in accordance with
Article 21, Section 9.

     6. Training, Checking, or Testing Failures

	 	A.	 	Training (Initial New Hire, Recurrent, Initial Equipment, Transition,
Upgrade, or specialized training). A pilot who is unable to successfully complete a
required portion of training will have that training discontinued. The Director of
Training
will consult with the pilot in an effort to determine the cause of the of the pilot’s
inability to complete the training. The pilot may request a change of instructor,

28

 

	 	 	 	and the Employer will grant this request if another instructor is available. If the
pilot is still unable to successfully complete the training, the Director of Training
will determine if training is to be continued or stopped. If the Director of
Training stops the training, the pilot will be returned to his previous job. If that
job no longer exists, the pilot will be assigned to the pilot pool. In the case of
Initial New Hire training, the Chief Pilot or the Director of Operations will review
the pilot’s training records and make a determination as to the appropriate course of
action.
	 
	 	B.	 	Checking or Testing Failures. A pilot who fails a required test or check
will immediately be removed from flight duty. The pilot will be offered additional
training if necessary, and a recheck, if he successfully completes the additional
training, providing that the pilot has had no previous failures within the past
three (3) years. The pilot may request a change of instructor or check airman, and
the Employer will grant this request if another check airman is available. If the
pilot has had a previous failure within the past three (3) years, the Chief Pilot or
the Director of Operations, will consult with the pilot and determine an appropriate
course of action. If further training, testing or checking is approved by the Chief
Pilot or the Director of Operations, the pilot may request a check airman change.
The Employer will grant this request if another check airman is available. The
pilot may request a recheck by an FAA inspector, and the Employer will make an
effort to accommodate this recheck request, but does not control the availability of
an FAA inspector. If the pilot fails the recheck, the Chief Pilot or Director of
Operations will determine an appropriate course of action.
	 
	 	C.	 	Pay Procedures for Checking or Testing Failures. The Employer will make
a reasonable effort to retest or recheck within seven (7) days of the date of the
initial test or check failure. If the pilot fails a retest or recheck, he will be
returned to his previous job, if qualified. If that job is not available, the pilot
will be reassigned to the pilot pool, if qualified. The Employer will provide
housing and per diem for time spent in training, testing or retesting, and;

	 	(1)	 	A pilot who fails any required test or check and has not failed
a test or check within the past thirty-six (36) months will be ineligible for
any additional pay during his earned time off and will be removed from flight
duty. The pilot will be eligible for up to seven (7) scheduled workdays pay
following the failure provided he has not declined to retest or recheck during
his earned time off. If the additional time beyond the seven (7) scheduled
missed workdays is due to the pilot’s unavailability or the pilot declines the
opportunity to retest or recheck during his earned time off, then all time for
missed scheduled workdays will be either leave without pay or VSTO, until the
pilot completes the retest or recheck.
	 
	 	(2)	 	A pilot who fails any required test or check and has failed a
test or check within the preceeding thirty-six (36) months will be ineligible
for any additional pay during his earned time off and will be removed from
flight duty
and will be placed on leave without pay or VSTO, until he successfully passes
the retest or recheck.

29

 

     7. Training Committee

	 	A.	 	The parties agree to create to a joint training committee, which shall
consist of two (2) representatives designated by the Employer, and two pilots
designated by the Union. The role of the Training Committee shall be to jointly
review pilot recommendations for changes and improvements in the pilot training
programs. Pilot representatives shall function in an advisory capacity. The
training committee will meet periodically as necessary, but no less than once per
year.

30

 

Article 18. Facilities, Equipment and Uniforms

FACILITIES

     1. Except for regular assignments in Fixed Wing, EMS, firefighting and other unique operations
in remote areas, the Employer shall provide pilots with clean and comfortable rooms near its
operating bases. These may be either apartment units, motels, or mobile homes. The rooms will be
provided under the following circumstances:

	 	A.	 	When a pilot does not work within thirty (30) miles of his home
regardless of whether he is on regular work schedule or workover; or
	 
	 	B.	 	When travel back to his home would prevent the pilot from receiving
minimum rest in accordance with FARs.

     2. All mobile homes provided by the Employer will be limited to a maximum of five (5)
bedrooms. If any pilot(s) in a mobile home objects to such sleeping accommodations for valid
reasons, the Employer will endeavor to place the pilot(s) in alternate accommodations. Quality
furnishings will be provided in each mobile home, including air conditioning, furniture, two
refrigerators (in units with five (5) bedrooms), television with selectable cable or equivalent,
stove and microwave oven, and cooking and eating utensils. If not provided in the mobile homes,
washers and dryers will be provided near the operating bases.

     3. For Employer-provided accommodations, the Employer will provide maid service weekly to
clean the facility and replace towels and bed linens. Adequate numbers of clean towels and linens
will be provided to pilots at least once per week. When a pilot vacates a room, it is his
responsibility to remove his bed linens and place his towels and linens in the designated location
inside the residence.

     4. The Employer will arrange transportation to and from Employer-provided off-base
accommodations for pilots who are assigned to a different work location than the location the pilot
initially reported to, unless the pilot used his personal vehicle to move to that new work
location. The Employer will endeavor to arrange transportation to such pilots at meal times as
necessary.

     5. Pilots on temporary assignment or workover (other than at their regularly assigned base) in
EMS shall be provided with clean and comfortable housing near the assigned work location and the
Employer will arrange transportation to and from the accommodations when required. The Employer
will provide or reimburse Fixed Wing pilots for accommodations when the pilot is required by the
Employer to remain overnight (RON). If a pilot is assigned to a fire fighting assignment or other
unique remote area assignments, the Employer will provide clean and comfortable housing where
available.

     6. All Employer-provided accommodations shall be single occupancy, if available.

     7. The Union may appoint a Crew Accommodations Committee to work jointly with the Employer
concerning pilot complaints about pilot accommodations. The Committee may

31

 

make recommendations to
the Employer to improve crew accommodations and base living conditions.

     8. The Employer will make a reasonable effort to insure that customer-provided accommodations
are suitable, clean and comfortable. If a pilot finds the customer-provided accommodations
substandard, he shall immediately report his specific complaint to the Employer, and the Employer
will promptly investigate and seek to resolve the complaint. In any case where the
customer-provided accommodations are substandard, with Employer approval, the pilot may be
permitted to move to another location with acceptable accommodations.

     9. It will be the responsibility of each pilot housed in Employer-provided accommodations to
maintain the cleanliness of his area, treat all furnishings and appliances with care, and report
any items in need of repair to the appropriate supervisor or Area Manager. Smoking is not
permitted in Employer-provided accommodations.

     10. Employer-provided accommodations are to be used by PHI employees only.

EQUIPMENT

     1. The Employer shall make available to its pilots all equipment required to perform their
duties.

     2. Pilots are responsible for all equipment assigned to them, and if they lose equipment, or
damage equipment through negligence, the pilot will be required to reimburse the Employer for the
cost of the replacement. Employer-provided equipment that becomes inoperative as a result of
normal wear and tear will be repaired or replaced by the Employer.

     3. The Employer will provide each pilot with an individually assigned headset. If the pilot
loses or damages the headset, the pilot will be required to purchase a replacement. Headsets that
become inoperative as a result of normal wear and tear will be repaired or replaced by the
Employer.

PILOT UNIFORMS

     1. Pilot uniforms are provided by the Employer and are required to be worn while on duty in
the work environment. The Oil & Gas pilot uniform consists of tan shirt with shoulder boards and
brown trousers. The IHTI pilot uniform consists of blue shirt with shoulder boards and blue
trousers. The Aeromedical pilot uniform is appropriate to the customer assignment. Uniform colors
are at the sole discretion of the Employer.

     2. Pilots will be issued fourteen (14) garments for seven (7) complete uniforms when hired.
Short or long sleeve shirts may be ordered in any combination totaling seven (7), but may
not be substituted for ordering extra pants. In addition, a pilot may be issued up to four (4)
caps per year.

32

 

     3. Pilots’ names will be displayed on the uniform shirts. Space limitations dictate a maximum
of twenty-seven (27) total letters. The maximum number of letters for the first name is eleven
(11). If the pilot’s first name exceeds eleven (11) letters, the initial letter of the first name
will precede the last name. A pilot may choose not to display his last name. Nicknames which are
derivatives of given first, middle, or last names can be used on the uniform shirt.

     4. The replacement of pilot uniforms for reasonable wear and tear will be based on Employer
approval.

     5. Substitution or modification other than tailoring for proper fit of uniform parts is not
permitted. Shirts will be worn tucked in. Belts will be worn. The headgear issued by the
Employer or that of an appropriate customer or manufacturer may be worn.

     6. Pilots shall maintain their uniforms in a clean and professional condition.

     7. Pilots shall wear brown or black professional footwear.

33

 

Article 19. Severance Pay

     1. A pilot who is laid off and goes on furlough with the Employer shall receive severance
pay according to the schedule in Section 2 below except if one or more of the following conditions
exist he shall receive no severance pay:

	 	A.	 	He refuses to accept a job or assignment within his category as “pilot”
with the Employer;
	 
	 	B.	 	The lay off is caused by circumstances beyond the control of the Employer;
or
	 
	 	C.	 	He is dismissed for cause, resigns or retires.

     2. Severance pay will be paid within seven (7) days of the pilot’s furlough according to the
following schedule:

	 	 	 	 	 
	Years Company Service	 	Calendar Weeks Severance Pay
	1 year but less than 4 years
	 	 	2	 
	4 years but less than 8 years
	 	 	4	 
	8 years but less than 12 years
	 	 	6	 
	12 years but less than 16 years
	 	 	8	 
	16 years or more
	 	 	10	 

     3. The Employer may offer voluntary leaves of absence or voluntary furloughs to offset
scheduled furloughs. Any volunteer selected by the Employer for furlough shall be covered by the
provisions of this Article.

     4. Medical, dental and life insurance, if any, shall continue until the end of the month the
pilot terminates provided such pilot pays appropriate premiums. The pilot will be eligible for
COBRA coverage at that time.

34

 

Article 20. Moving Expense

     1. It is the policy of PHI to assist and ease the financial and other burdens associated
with the reasonable expenses of relocation. This policy will provide uniform and equitable
treatment regardless of work location within the United States.

     2. Pilots who relocate at the request of the Employer who are required to live within one (1)
hour of the job location shall be reimbursed under this policy, however, a move will only be paid
if it results in the Employer not having to provide the pilot with Employer-provided accommodations
at his new work location. In the event the Employer reimburses a pilot for relocation to a new job
assignment and that job contract later ends, the Employer will reimburse the pilot’s relocation to
his previous domicile or his next assignment.

     3. The Human Resources Department will assist relocating pilots to facilitate their move.

     4. Eligible pilots will be reimbursed for reasonable expenses of moving as follows:

	 	A.	 	Packing, insuring, shipping, unpacking and placement of
household personal effects and reasonable items of furniture, furnishings,
clothing, appliances, tools and equipment from the principal place of residence
to the new home up to a maximum of 12,000 pounds. Special handling items as
defined by the moving company will not be eligible for reimbursement (e.g.-
transportation of pets/animals, boats, automobiles, motorcycles and heavy shop
equipment).
	 
	 	B.	 	Automobile(s) will not be transported as part of the household
goods move. PHI will pay the cost of driving one vehicle per family by the
most direct AAA highway mileage route at the current mileage rate established
by the IRS. No expenses will be paid for a second vehicle.
	 
	 	C.	 	Transportation of pilot and family at the time of the move:

	 	•	 	Mileage at current IRS rate by the most direct AAA highway mileage
route from home to home
	 
	 	•	 	Pilots will be allowed the following enroute expenses when properly
substantiated by receipts during the period of enroute travel:

	 	I.	 	For pilot only -
$30.00/day
	 
	 	II.	 	For pilot and Spouse -
$60.00/day
	 
	 	III.	 	For each dependent child
 - $15.00/day

	 	•	 	The period of enroute travel shall continue after arrival until the
day the household effects arrive or until the end of the fifth
(5th) day, whichever comes first.

35

 

	 	D.	 	For the purpose of determining necessary travel time, the
Employer will allow one (1) travel day for each five hundred (500) miles or
fraction thereof, to a maximum of five (5) travel days when driving a vehicle.
The pilot is expected to move during his days off and be prepared to work on
his assigned schedule. The most direct AAA mileage between the two (2) cities
will determine travel time.

     5. Pilots eligible for Employer paid moving expenses who elect to move themselves shall be
reimbursed for actual moving expenses such as truck or trailer rental, gas, oil, drop-off and other
Employer-approved expenses. Pilots must notify the Employer in advance of a move, receive prior
Employer approval, and follow the specified procedures per Company policy in order to be
reimbursed. Actual expenses reimbursed cannot exceed the total estimated cost of a
Company-coordinated move.

     6. Federal Tax Regulations require an Employer to include moving reimbursements as gross
income. The Internal Revenue Code allows reasonable moving expense deductions provided pilots use
the itemized deduction procedure when filing their income tax returns.

     7. Pilots who voluntarily leave the Employer within twenty-four months of a paid move will be
required to reimburse the Employer for all moving expenses provided herein.

36

 

Article 21. Base Pay

     1. A pilot will be placed in his appropriate pay scale based on the type of aircraft
flown and his years with the Employer as a pilot, except where a pilot has been hired and given
credit for appropriate previous experience.

Captain, VFR (PIC)/First Officer, IFR (SIC)/First Officer, Fixed Wing (SIC)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1/1/2001	 	June 2001	 	June 2002	 	June 2003
	STEP	 	Annual Pay	 	Annual Pay	 	Annual Pay	 	Annual Pay
	1

	 	$	37,000	 	 	$	40,700	 	 	$	42,735	 	 	$	44,872	 
	2

	 	$	38,000	 	 	$	41,800	 	 	$	43,890	 	 	$	46,085	 
	3

	 	$	39,000	 	 	$	42,900	 	 	$	45,045	 	 	$	47,297	 
	4

	 	$	40,000	 	 	$	44,000	 	 	$	46,200	 	 	$	48,510	 
	5

	 	$	41,250	 	 	$	45,375	 	 	$	47,644	 	 	$	50,026	 
	6

	 	$	43,250	 	 	$	47,575	 	 	$	49,954	 	 	$	52,451	 
	7

	 	$	45,250	 	 	$	49,775	 	 	$	52,264	 	 	$	54,877	 
	8

	 	$	46,750	 	 	$	51,425	 	 	$	53,996	 	 	$	56,696	 
	9

	 	$	47,300	 	 	$	52,030	 	 	$	54,632	 	 	$	57,363	 
	10

	 	$	47,550	 	 	$	52,305	 	 	$	54,920	 	 	$	57,666	 
	11

	 	$	47,800	 	 	$	52,580	 	 	$	55,209	 	 	$	57,969	 
	12

	 	$	48,100	 	 	$	52,910	 	 	$	55,556	 	 	$	58,333	 
	13

	 	$	48,750	 	 	$	53,625	 	 	$	56,307	 	 	$	59,122	 
	14

	 	$	49,401	 	 	$	54,341	 	 	$	57,058	 	 	$	59,911	 
	15

	 	$	50,051	 	 	$	55,056	 	 	$	57,809	 	 	$	60,700	 
	16

	 	$	50,702	 	 	$	55,772	 	 	$	58,560	 	 	$	61,488	 
	17

	 	$	51,352	 	 	$	56,487	 	 	$	59,311	 	 	$	62,277	 
	18

	 	$	52,002	 	 	$	57,202	 	 	$	60,063	 	 	$	63,066	 
	19

	 	$	52,653	 	 	$	57,918	 	 	$	60,814	 	 	$	63,854	 
	20

	 	$	53,303	 	 	$	58,633	 	 	$	61,565	 	 	$	64,643	 

37

 

Captain, IFR (PIC)/Captain, Fixed Wing (PIC)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1/1/2001	 	June 2001	 	June 2002	 	June 2003
	STEP	 	Annual Pay	 	Annual Pay	 	Annual Pay	 	Annual Pay
	1
	 	$	43,420	 	 	$	47,762	 	 	$	50,150	 	 	$	52,658	 
	2
	 	$	43,420	 	 	$	47,762	 	 	$	50,150	 	 	$	52,658	 
	3
	 	$	43,420	 	 	$	47,762	 	 	$	50,150	 	 	$	52,658	 
	4
	 	$	44,554	 	 	$	49,009	 	 	$	51,460	 	 	$	54,033	 
	5
	 	$	45,550	 	 	$	50,105	 	 	$	52,610	 	 	$	55,241	 
	6
	 	$	46,500	 	 	$	51,150	 	 	$	53,708	 	 	$	56,393	 
	7
	 	$	48,000	 	 	$	52,800	 	 	$	55,440	 	 	$	58,212	 
	8
	 	$	50,250	 	 	$	55,275	 	 	$	58,039	 	 	$	60,941	 
	9
	 	$	51,500	 	 	$	56,650	 	 	$	59,483	 	 	$	62,457	 
	10
	 	$	52,750	 	 	$	58,025	 	 	$	60,926	 	 	$	63,973	 
	11
	 	$	54,750	 	 	$	60,225	 	 	$	63,236	 	 	$	66,398	 
	12
	 	$	56,250	 	 	$	61,875	 	 	$	64,969	 	 	$	68,217	 
	13
	 	$	58,500	 	 	$	64,350	 	 	$	67,568	 	 	$	70,946	 
	14
	 	$	60,000	 	 	$	66,000	 	 	$	69,300	 	 	$	72,765	 
	15
	 	$	61,000	 	 	$	67,100	 	 	$	70,455	 	 	$	73,978	 
	16
	 	$	61,246	 	 	$	67,641	 	 	$	71,023	 	 	$	74,574	 
	17
	 	$	61,492	 	 	$	68,182	 	 	$	71,592	 	 	$	75,171	 
	18
	 	$	61,738	 	 	$	68,724	 	 	$	72,160	 	 	$	75,768	 
	19
	 	$	61,984	 	 	$	69,265	 	 	$	72,728	 	 	$	76,364	 
	20
	 	$	62,230	 	 	$	69,806	 	 	$	73,296	 	 	$	76,961	 
	21
	 	$	62,476	 	 	$	70,347	 	 	$	73,865	 	 	$	77,558	 
	22
	 	$	62,722	 	 	$	70,888	 	 	$	74,433	 	 	$	78,154	 
	23
	 	$	62,968	 	 	$	71,430	 	 	$	75,001	 	 	$	78,751	 
	24
	 	$	63,214	 	 	$	71,971	 	 	$	75,569	 	 	$	79,348	 
	25
	 	$	63,460	 	 	$	72,512	 	 	$	76,138	 	 	$	79,944	 
	26
	 	$	63,706	 	 	 	 	 	 	 	 	 	 	 	 	 
	27
	 	$	63,952	 	 	 	 	 	 	 	 	 	 	 	 	 
	28
	 	$	64,198	 	 	 	 	 	 	 	 	 	 	 	 	 
	29
	 	$	64,444	 	 	 	 	 	 	 	 	 	 	 	 	 
	30
	 	$	64,690	 	 	 	 	 	 	 	 	 	 	 	 	 
	31
	 	$	64,936	 	 	 	 	 	 	 	 	 	 	 	 	 
	32
	 	$	65,182	 	 	 	 	 	 	 	 	 	 	 	 	 
	33
	 	$	65,428	 	 	 	 	 	 	 	 	 	 	 	 	 
	34
	 	$	65,674	 	 	 	 	 	 	 	 	 	 	 	 	 
	35
	 	$	65,920	 	 	 	 	 	 	 	 	 	 	 	 	 

     2. On the first day of the first pay period in April 2001, each pilot who was on the pilot
payroll as of December 31, 2000 and who is not topped out in his respective pay scale will move

38

 

up one step on the appropriate pay scale. This represents approximately a 2.5% increase for
pilots.

     3. On the first day of the first payperiod in June 2001, the Employer will compress the number
of step levels in the Captain, IFR (PIC) pay scale from thirty-five (35) to twenty-five (25) steps
as shown in Section 1 above (Captain, IFR (PIC) June 2001), and affected Captain, IFR (PIC) pilots’
pay will be increased accordingly.

     4. On the first day of the first payperiod in June 2001, each pilot will be moved to the pay
scales listed in Section 1 above (June, 2001 Annual Pay). This scale represents a 10% increase
over pay scales effective 1/1/2001.

     5. One year following the execution of this Agreement, each pilot will be moved to the pay
scales listed in Section 1 above (2002 Annual Pay). This scale represents a 5% increase over the
pay scales effective June 2001.

     6. On the first day of the first pay period in both April 2002, April 2003 and April 2004,
each pilot who was on the pilot payroll as of December 31, 2001, December 31, 2002, and December
31, 2003 respectively, and who is not topped out in his respective pay scale will move up one (1)
step on the appropriate pay scale. This represents approximately a 2.5% increase for each year of
step increase for pilots.

     7. On the first day of the first pay period in June 2003, each pilot will be moved to the pay
scale listed in Section 1 above (June 2003 Annual Pay). This scale represents a 5% increase over
the pay scales effective 2002.

     8. The Employer has paid to each pilot on the payroll as of December 31, 1999, a one-time
retroactive lump sum calculated on the basis of placing the pilot in his proper step level
(generally based on years of service with the Employer) and the resulting increased regular base
rate of pay for the period between April 2000 (or the pilot’s date of employment if after April
2000) and January 1, 2001.

     9. Workover rate shall be computed by dividing the pilot’s yearly base salary by one hundred
eighty-two (182) anticipated yearly workdays on his assigned work schedule plus 50%. This rate is
referred to as the “regular workover rate.”

     10. A pilot who is required to participate in any training required by the Employer or a
customer (other than initial new hire training) outside his normal work schedule will be paid a
regular day’s pay for that day (calculated by dividing his yearly base salary by the number of
anticipated work days on his assigned schedule); provided, however, that he is in training for more
than five (5) hours for that day. If the pilot spends five (5) hours or less in training as
described above he shall be paid one-half (1/2) of a regular days pay for that day. Pilots
participating in initial new hire training will be paid a regular monthly salary regardless of work
schedule for the duration of this training.

39

 

Article 22. Pilot Bonuses

     1. Pilots will be eligible for the following bonuses for the period of time they are
working the schedule:

Schedule Bonuses

Helicopter Pilots

5&2 Schedule (14 hour duty day only)- 25% of base pay up (maximum of $1,150/month)

2 for 1 Schedule - $1,150 per Month

Fixed Wing Pilots

New Orleans 5&2 Schedule - $350 per Month

2 for 1 Schedule - $1,150 per Month

Duty Bonuses

Lead Pilot - $25 per day ($30/day if Lead Pilot flies a contract job)

Instructor - $200 per month

Check Airman - $500 per month

Pilot/Mechanic - $500 per month

RMT Pilot - $1,000 per month

Fire/Extended Standby -
Extended standby time is determined by the Forestry Service and is passed through to the pilot.

First Officer, IFR (SIC) - $125 per month

Captain, VFR (PIC) single pilot medium aircraft (reconfigured to 9 or less passengers) - $75 per
month (see Note 1 below)

Captain, VFR (PIC) dual pilot VFR medium aircraft (10 passenger of more) - $75 per month (see
Note 1 below)

Heavy Ship First Officer (SIC) (214ST) - $150 per month

Heavy Ship Captain (PIC) (214ST) - $300 per month

Certification Bonuses

Airline Transport Pilot Rating- $100 per month

Note 1: To qualify for this bonus, pilot(s) must be permanently assigned as either single
pilot Captain, VFR medium aircraft reconfigured to 9 passenger or
less; or dual
pilot Captain, VFR medium aircraft 10 passenger or more. These VFR medium aircraft
configurations will only be at customer request and will usually be flown with VFR medium aircraft
added to Employer’s fleet (and are not anticipated to constitute a significant portion of the
Employer’s fleet).

40

 

Article 23. Other Bonuses

     1. Offshore Bonus- In addition to his base salary, a pilot who is required by the
Employer or the customer to remain at an offshore location overnight shall receive twenty-five (25)
dollars per night.

     2. Fire Contract Bonus- In addition to his base pay and any other bonuses, a pilot
will receive a fire contract bonus of $100/day when the aircraft is activated on a fire contract.
This bonus shall begin when he reports to the duty assignment (including reasonable travel time)
and shall end when he is released from the duty assignment (including reasonable travel time).

     3. Safety Award Program- The Employer’s safety award program will continue in its
present form (attached as addendum herein). However, the Employer reserves the right to modify or
discontinue the program at its discretion but agrees to confer with the union prior to doing so.

     4. Holiday Pay- The Employer recognizes six holidays per calendar year: New Year’s
Day, Memorial Day, 4th of July, Labor Day, Thanksgiving Day and Christmas Day. Any
pilot who works on an Employer designated holiday shall receive an additional eight hours pay at
his Workover rate.

41

 

Article 24. Workover

     1. All pilots who work extra duty days over and above their assigned work schedule will
be paid for the extra days worked at a workover rate, except that all types of training outside the
pilot’s normal work schedule shall be paid according to Article 21. Base Pay, Section 9.

     2. Separate workover volunteer lists will be maintained at each base and at Lafayette
Scheduling. These lists will indicate the days the pilot is willing to “workover” at particular
bases on his normal time off. Each list will include a telephone number (or beeper number) where
the pilot may be reached. Workover will be limited to a maximum of four days for any seven-day
off-time period unless otherwise approved by the business unit manager or Director of Operations.
A pilot who desires to have his name added to the workover list at a specific base(s) shall notify
by Sunday 12 noon in writing (email, fax or otherwise) the appropriate Area Manager(s) (or their
representatives) of his desire to workover. Each pilot is limited to requesting workover at two
(2) specific bases, however, he may also send his workover request to Lafayette Scheduling. This
request shall include the pilot’s name and contact number, the date(s) the pilot is available for
workover, the aircraft the pilot is qualified to fly, his current job assignment and the date of
his last workover. If the pilot is assigned offshore and has no means of notifying the base(s)
except by telephone, the base will accept and note on the workover list such verbal notification
for this pilot. If the pilot is willing to workover at any base, he will send his workover request
to Lafayette Scheduling and will include the information listed above. Each workover list will be
purged at the end of each calendar quarter and pilots who desire workover will be required to
resubmit their workover requests as described above.

     3. The Employer will first attempt to award workover to pilots with off days between training
and their normal work            hitch. For other available workover the Employer will allow the
pilot in the order described below to choose which workover he desires to work. Available workover
will be awarded in the following order: a) to pilots on that job at the base, b) on a rotating
basis to all other pilots on the workover list starting with the pilot who reported the greatest
length of time since his last workover at that base. In the event two or more pilots report the
same length of time since their last workover, the pilot with the most bidding seniority will
receive the workover. When a base workover list is exhausted, Lafayette Scheduling will provide a
pilot for the workover on the same basis as described above. When the workover lists are
exhausted, the Employer may fill the position with any qualified pilot who is employed by the
Employer. If the Employer is still unable to fill the job requirement under the procedures
outlined in this Article, workovers shall be assigned based on bidding seniority, starting with the
least senior qualified pilot, except that once a pilot has worked three (3) such workover days per
calendar year, the next least senior qualified pilot shall be required to accept the next mandated
workover until he reaches three such workover days and so on until the seniority list is depleted.
Further assigned workovers would then revert to the least senior pilot until he reaches six (6)
mandated workover days in a calendar year and then continue as described above.

     Once the pilot has accepted a workover assignment, it may not be changed without prior mutual
agreement between the pilot and the Employer.

42

 

     4. The pilot will designate on the workover request form with the Area Manager (or his
representative) if he is available for “emergency workover” (workover opportunity which requires
the pilot to report within two hours). Qualified pilots will be selected for emergency workovers
on the same basis as described in Section 3 above.

     5. A pilot may request and be approved by the Employer to take compensatory time in lieu of
receiving workover pay. A pilot will be compensated at his regular base pay for any approved
compensatory time taken.

     6. A pilot will be passed over for workovers when:

	 	A.	 	A pilot is not qualified.
	 
	 	B.	 	A customer requests a certain pilot or requests that a certain pilot
not fly his job.
	 
	 	C.	 	There is a conflict with a pilot’s regular job (i.e., FAR limitations).
	 
	 	D.	 	The dates of a pilot’s availability conflict with the length of the
workover requirement.
	 
	 	E.	 	An off-duty pilot does not answer a phone call from the Employer or
does not return a message left on his answering machine within fifteen (15)
minutes. The time and date of the attempted call to contact the pilot will be
documented by the Employer.
	 
	 	F.	 	A pilot is unable to give a definitive answer at the time of the call.
	 
	 	G.	 	An off-duty pilot will be allowed to use a beeper as his contact number
only for normal workovers and will have fifteen (15) minutes to respond to his page
or he will be passed over for a workover assignment. The pilot is responsible to
make certain that his beeper is in working order.
	 
	 	H.	 	An on-duty pilot cannot be contacted within two (2) hours.

     7. A pilot who has expressed interest in workover and subsequently twice refuses a workover
without having previously removed his name from the workover request list will be removed from the
workover list for the next four (4) calendar weeks, and he may not put his name back on that
specific workover list during this period.

     8. The Director of Training or his designee shall determine workover in the Training
Department. The Director of Operations and the Director of Training (or their designees) shall
determine placement of Instructor/Check Airmen in the performance of their duties, including line
checks.

     9. For jobs that are assigned to pilot/mechanics, any qualified pilot/mechanic will be called
first for those workover assignments.

     10. If a pilot on a Gulf of Mexico assignment is required to remain overnight due to
head-to-head crew change requirements, he will receive workover pay based on duty time rounded to
the next hour with a minimum of two (2) hours and a maximum of one full day workover once he has
been on duty at least eight (8) hours for that day.

43

 

     11. The Employer reserves the option to pay a premium rate (e.g. workover) for all time it
deems appropriate due to operational necessity. The Employer will meet and confer with the Union
prior to implementing a premium rate.

     12. A pilot attending any training required by the Employer or a customer outside his normal
work schedule will not be eligible for workover for those days spent in training.

     13. For three (3) months after the execution of this agreement, the remedy for inadvertent
Employer errors in awarding workover shall be that the affected pilot or pilots shall receive
priority consideration without regard to the length of time since his last workover or his bidding
seniority for the number of workovers which corresponds to the workover error only where the pilot
is qualified and acceptable to the customer, however, Section 6 above shall apply to any offer of
workover under this Section.

     14. Three (3) months after the execution of this Agreement, the parties will meet to determine
if any changes should be made in the terms of this Article. If the parties mutually agree to
changes, this Article shall be amended accordingly. In any event after the three month trial
period, the additional remedy for Employer errors will be one (1) hour workover paid for each
workover day missed due to the error, up to a maximum of four (4) hours workover pay.

44

 

Article 25. Travel Pay

     1. If a pilot is required to move between two or more field bases or another PHI
designated location during his normal work schedule and that pilot uses personal transportation, a
mileage allowance equal to the IRS standard mileage rate per mile will be paid. A mileage allowance
will also be paid if a pilot is required to go directly from one base to another for workover in
conjunction with that person’s regular work hitch. Such mileage allowance will be paid on the
basis of an Employer approved mileage chart calculated using the most direct route between bases.

     2. The Employer shall make reasonable efforts to enter into Additional Crew Member Agreements
(ACM) with other air transportation carriers. The Employer shall provide a photo identification
card that clearly identifies the employee as a pilot on his next occasion of recurrent training.

45

 

Article 26. Per Diem

     1. A pilot shall receive per diem when company housing is provided as described in
Article 18. Facilities & Equipment, Section 1.

     2. A pilot cannot receive both an offshore bonus and per diem for the same workday.

     3. Per diem shall be paid as follows:

	 	A.	 	Three (3) dollars per meal to a maximum of nine (9) dollars per day
when the pilot is working at his regularly assigned base.
	 
	 	B.	 	Five (5) dollars per meal to a maximum of fifteen (15) dollars per day
for:

	 	(1)	 	Pilots assigned to the pilot pool;
	 
	 	(2)	 	Replacement pilots for EMS;
	 
	 	(3)	 	A pilot on a regular work schedule who is required to relocate
via vehicle or aircraft after arriving at his assigned base;
	 
	 	(4)	 	A pilot attending training at locations other than PHI
facilities (e.g., Flight Safety Training); and
	 
	 	(5)	 	A pilot assigned to an offshore contract and normally required
to remain offshore who is required to RON onshore during his work schedule

46

 

Article 27. Insurance Benefits

     1. The Employer shall offer welfare benefits for Pilots equal in benefits and employee
premiums to that of the company’s non-represented employees. This includes, but is not limited to,
Medical Insurance, Dental Insurance, Term Life Insurance, Employee and Dependent Supplemental Life
Insurance, LTD coverage, Medical Loss of License Coverage, Medical and Dependent Care Spending
Accounts, Employee Assistance Program, and Vision Discount Program.

     2. Effective January 1, 2002, the Employer will modify its Term Life Insurance Plan to provide
at no cost to each employee, including pilots covered under this Agreement, one and one-half (1 1/2)
times his annual base salary in life insurance coverage and an equal amount of coverage under
Accidental Death and Dismemberment (AD&D). The Employer will make reasonable efforts with the
Insurance provider to avoid having the additional Employer-provided Life Insurance affect the
amount of Supplemental Life Insurance and AD&D “buy-up” coverage which is now available to the
employee.

47

 

Article 28. 401(k) Plan

     1. The Employer shall match a participating Pilot’s 401(k) plan salary deferral
contribution two dollars for each dollar the pilot contributes up to a maximum of the pilot’s first
three (3) percent of gross earnings bi-weekly, exclusive of bonuses.

     2. The Employer will separate the 401(k) plan for pilots covered by this agreement from other
401(k) plan participants.

48

 

Article 29. General & Miscellaneous

     1. Any pilot leaving the service of the Employer shall, upon written request to the Human
Resources Department, be provided with a letter setting forth the Employer’s record of his job
classification, length of service and rate of pay at the date of his termination.

     2. The pay period is currently every fourteen (14) days (bi-weekly). If the Employer wishes
to change the pay period timing, it shall meet and discuss the change with the Union prior to
implementation. The Employer shall continue to offer, on a voluntary basis, Electronic Funds
Transfer (EFT) to the pilot’s bank of choice.

     3. When there is an error in the pay of a pilot, this error will be corrected as soon as
possible, not to exceed five (5) business days following notification.

     4. If the Employer decides to place into service aircraft other than those already in service
at the time of execution of this Agreement, the Employer will confer with the Union as soon as
possible and prior to establishing rates of pay, rules and working conditions applicable to the new
aircraft. If the Employer decides to place into service any aircraft of substantially different
design, configuration (e.g., tiltrotor aircraft, CH54) or cargo/passenger capacity of twenty-two
(22) or more passengers, either party may request a mediator from the National Mediation Board to
participate in interest based bargaining discussions for a period of up to sixty (60) days prior to
the Employer implementing rates of pay, rules and working conditions applicable to the new
aircraft.

     5. A pilot’s personal items lost or damaged due to an aircraft accident or incident will be
reimbursed by the Employer at the replacement costs of such items, provided, however, that the
Employer reserves the right to require reasonable proof of loss and value of such personal items.

     6. In the event the Employer requires an off-hitch pilot to report in person for a meeting
with management for any reason, except in cases where discipline is imposed following the meeting
or as otherwise provided in the Training Article, the pilot will receive workover pay for all hours
spent in such meeting, with a minimum of two hours workover and a maximum of a full day of workover
for each day spent in such meetings. Except in cases where discipline is imposed following the
meeting or as described in Article 17. Training, the Employer will also reimburse the pilot for
mileage, lodging and per diem at rates described in this Agreement.

     7. Pilots shall not engage in business activities which are in competition with the Employer
or interfere with the pilot’s performance of his Employer duties, without first obtaining the
written approval of the Employer. This section shall not be construed to prohibit pilots from
affiliating with or performing duties for the Armed Forces of the United States of America.

     8. Pilots will be required to ensure the aircraft is secure (e.g.- tie down kit installed),
engine(s) rinsed and dried, and a reasonably clean and orderly cockpit. To the extent that such

49

 

duties would interfere with the pilot’s availability for duty on the following day, the pilot will
be excused from these duties.

     9. Pilot duty positions are as follows: Captain, IFR; First Officer, IFR; and Captain, VFR.

50

 

Article 30. Safety/Accident Prevention

     1. The Employer and the Union recognize their duty and responsibility to ensure the
safety of our customers and employees. It is agreed that:

	 	A.	 	Safety is the primary consideration in all aspects of the job;
	 
	 	B.	 	Safe working conditions, proper training, proper equipment and
appropriate protective devices are essential elements in this safety and accident
prevention effort;
	 
	 	C.	 	The Employer will train pilots in any new aircraft, its components or
on any new procedures which pilots may be required to utilize;
	 
	 	D.	 	All pilots must follow PHI safety policies and procedures, including
safety practices as published and taught. Following safe work practices is a
condition of employment.
	 
	 	E.	 	Both PHI and the pilots shall adhere to all applicable Federal
Aviation, or other controlling Regulations.
	 
	 	F.	 	The Employer will ensure the continuation of the Notice to Airmen
(NOTAM) system and weather reporting system.

     2. The parties agree to create a joint Safety Committee, which shall consist of two
representatives designated by the Employer and two pilots designated by the Union. The role of the
Safety Committee shall be to jointly review pilot recommendations on safety and accident prevention
measures. Pilot representatives shall function in an advisory capacity. The Safety Committee
will meet periodically as necessary, but no less than once each quarter.

     3. The Union agrees to encourage pilots to engage in safe work practices and to communicate
safety issues to the designated management representative identified in Section 4 below.

     4. The Employer designates the Director of Safety as the management representative to be
responsible for receiving safety complaints.

     5. The Employer and the Union shall cooperate in seeking feasible solutions to help reduce
accident frequency and severity rates.

     6. The Employer will endeavor to equip its fleet of domestic aircraft with Traffic Alert
Systems by seeking customer participation in the funding of such equipment.

     7. The Employer will endeavor to equip all aircraft operated under instrument flight rules
(IFR) with approved flight directors by seeking customer participation in the funding of such
equipment.

51

 

Article 31. Sexual and Workplace Harassment Policy 

     1. It is agreed that the Employer, as a responsible corporate citizen, is committed to
maintaining a hospitable, cooperative work environment that promotes professionalism, common
courtesy and mutual respect among all levels of employees, supervisors, managers, and executives.
To advance that commitment, the Employer has adopted and will communicate to employees the Sexual
and Workplace Harassment Policy (attached as Appendix A) that strictly prohibits sexual and
workplace harassment on the basis of race, color, creed, gender, religion, national origin, age,
sexual orientation or disability. This policy shall not be amended during the term of this
agreement unless required by law.

     2. The Union agrees to support the provisions of the PHI Corporate Sexual and Workplace
Harassment Policy. Each pilot will be required to read, understand and sign an acknowledgement of
this policy, which will be placed in his personnel file.

52

 

Article 32. Environmental Compliance

     1. It is agreed that the Employer, as a responsible corporate citizen, is committed to
protecting human health, natural resources and the environment. This commitment is an important
aspect of daily corporate operation and administration, and reaches further than mere compliance
with the law — it encompasses the incorporation of sound environmental practices into all of our
business decisions. To advance this commitment, the Employer has adopted and will communicate to
employees the Corporate Environmental Policy (attached as Appendix B) that defines the
responsibilities of the Employer and the employees. This policy shall not be amended during the
term of this agreement unless required by law.

     2. The Union agrees to support the provisions of the PHI Corporate Environmental Policy. Each
pilot will be required to read, understand and sign an acknowledgement of this policy, which will
be placed in his personnel file.

53

 

Article 33. No Strike, No Lockout

     1. The Union agrees it will not, under any circumstances or for any reason, call,
encourage, authorize or engage in any strike, slow down or other concerted activity or hindrance to
work during the term of this Agreement.

     2. Any Pilot who engages in any activity described in section one of this Article will be
subject to discharge, and such discharge will not be subject to the grievance procedure and System
Board of Adjustment provisions of this Agreement, except as to the question of whether the Pilot
engaged in such a violation.

     3. The Employer agrees not to lock out Pilots during the term of this Agreement.

     4. If the Employer knows that one of its customers is being picketed, the employer will notify
the Pilot about the picket line before dispatching the Pilot to the location of the picket line.

     5. A Pilot may refuse to take an assignment to cross a picket line if he has reasonable safety
concerns. In any such case, the Company will be permitted to service the customer the best way
possible.

54

 

Article 34. Management Rights

     1. The Employer reserves and retains, solely and exclusively, all of the rights,
privileges and prerogatives which it had or possessed prior the execution of this Agreement,
regardless of the frequency or infrequency with which such rights have been exercised in the past,
except to the extent that such rights, privileges and prerogatives are specifically abridged by the
expressed provisions of this Agreement.

     2. Without limiting the generality of the foregoing, the sole and exclusive rights of
management which are not abridged by this Agreement include, but are not confined to, the full and
exclusive control, direction and supervision of the workforce; the hire, promotion, demotion,
transfer, layoff or reassignment of pilots; the discipline and discharge for cause of pilots; the
selection of pilots and the determination of the qualifications for pilot selection; the
determination of the size and composition of the workforce; the determination of schedules; the
determination of pilot job content and the amount and types of flight duties required; the
scheduling of the hours and days to be worked on each job and each shift; the selection and
determination of the number of pilots required, and the assignment of work to pilots; the
contracting out or subcontracting of work; the equipment to be utilized; the establishment and
enforcement of standards for the quality and quantity of work required to be performed by pilots;
the right to require physical exams and testing of pilots; the right to introduce new or improved
methods or facilities and/or the discontinuance of existing methods or facilities; the discretion
to suspend or cease its operations or any phase or part of its business or operations; the right to
make, amend and enforce work and safety rules and regulations; and the right to discontinue,
transfer or assign all or any part of its operations, and to establish new jobs and abolish or
change existing jobs.

55

 

Article 35. Discipline & Discharge

     1. Pilots may be subject to disciplinary actions, up to and including discharge for just
cause including violation or infraction of company rules or policies, or for violating this
Agreement. The severity of the infraction will determine the nature of the disciplinary action,
which can range from a verbal warning to a written warning, suspension or discharge.

     2. In case a pilot is called into a meeting to discuss possible disciplinary action against
him, the pilot may request to be accompanied by his Steward, and such a request will be granted by
the Employer, if the Steward or his alternate is available within a reasonable time, not to exceed
twenty four (24) hours.

     3. Upon his request, a pilot’s personnel file shall be open for his inspection during normal
office hours in the presence of an employer representative, upon reasonable notice. Nothing of a
derogatory nature will be placed in the pilot’s personnel file unless a copy is provided to the
pilot. Upon receipt of such a document, the pilot shall have the option of responding by
submitting a written rebuttal that will be placed in his personnel file. It the Employer
determines that the pilot’s comments invalidate the document in question, the document will be
removed from the pilot’s personnel file.

     4. Customer complaints or correspondence of a derogatory nature shall not serve as the basis
for discipline after twelve (12) months from the date of issuance unless within the 12 month period
there has been a recurrence of the same or similar nature.

     5. Disciplinary records involving the performance of his duties as a pilot shall not serve as
the basis for any discipline after five (5) years from the date of issuance unless within the five
(5) year period there has been a recurrence of the same or similar nature.

     6. In any case in which a pilot receives a formal reprimand or is discharged, a Human
Resources Representative will ask the pilot if he desires that a copy of the disciplinary document
be sent to a representative designated by the Union. If the pilot does so desire, the Human
Resources Representative will promptly forward a copy of the document to the designated Union
representative.

56

 

 Article 36. Grievance Procedure

     1. Disputes relating to the interpretation or application of this Agreement may be the
subject of a grievance. A grievance shall mean a dispute between an employee(s) or the Union and
the Employer with respect to the interpretation or application of this Agreement.

     2. Any such grievance shall be processed in the following matter:

	 	 	 
	    Step 1. 

	 	The pilot shall first attempt to resolve the grievance with his
immediate supervisor within seven (7) calendar days from the date of the
occurrence of the event giving rise to the grievance, or within seven (7) calendar
days of the date the pilot knew or should have known of such event not to exceed
twenty eight (28) calendar days from the date of the event. The supervisor shall
give his answer within seven (7) calendar days from that date.
	 
	 	 
	    Step 2.

	 	If the grievance is not resolved at Step 1 to the satisfaction of
the grievant, the grievance shall be reduced to writing and presented to the
designated representative of the Employer within ten (10) calendar days after the
receipt of the immediate supervisor’s answer. The written grievance must state
the nature of the grievance, the circumstances out of which it arose, the remedy
or correction requested and the specific provisions of the Agreement alleged to
have been violated. The Employer representative will give his answer to the
grievant in writing with a copy to the Union within ten (10) calendar days after
the receipt of the grievance.
	 
	 	 
	    Step 3.

	 	In the event the decision by the Employer representative is
unacceptable to the aggrieved party, it may be appealed in writing to the
designated representative of the Employer with seven (7) days of the receipt of
the decision. The appeal must include a statement of the reasons the grievant
believes the decision was erroneous. The Employer’s representative shall render a
decision on the appeal in writing within fourteen (14) calendar days of receipt of
the appeal. In the event the decision at Step 3 is unacceptable to the grievant,
the Union may appeal to the System Board of Adjustment in accordance with Article
37 of this agreement.

     3. In the event a non-probationary pilot who has been discharged wishes to grieve such
discharge, the grievance must be presented at Step 2 within seven (7) calendar days after the
termination.

     4. All provisions of this Article shall apply to Employer and Union grievances except that
such grievances shall be presented to the designated representative of the other party at Step 2.

     5. Any grievance not presented and processed in the manner, and within the time limits set
forth above, shall be waived provided, however, at any time in advance of the expiration of

57

 

such
time limit the parties may agree, by mutual written consent, to extend any time limit for a
specified period of time. Compliance with all time limits specified in this Article shall be
determined by the date of mailing as established by postmark, or by the date of hand delivery.

     6. No grievance, the basis for which occurred prior to the execution of this Agreement, shall
be considered.

     7. The Employer and the Union agree to furnish to the other party the names of their
designated representatives charged with administration of the grievance procedure within thirty
(30) calendar days after the execution of this Agreement. Any changes in these representatives
shall be furnished to the other party in writing.

     8. In the event a pilot is suspended pending an investigation of alleged misconduct, the pilot
shall be informed of the nature of the alleged misconduct at the time of suspension.

     9. The Union and the Employer may, by mutual agreement in writing, elect to bypass any or all
steps in this Article and proceed to the System Board of Adjustment in accordance with Article 37
of this Agreement.

58

 

Article 37. System Board of Adjustment

     1. In compliance with Section 204, Title II of the Railway Labor Act, as amended, this
Agreement establishes a System Board of Adjustment, which shall be called the Petroleum Helicopters
Pilots’ System Board of Adjustment, hereinafter called “the Board.”

     2. The Board has jurisdiction over timely filed and appropriately processed grievances arising
out of the interpretation and application of this Agreement relating to rates of pay, rules,
working conditions, discipline and discharge. The procedures set forth in this Article are the
exclusive and mandatory forum for all such disputes.

     3. The Board does not have jurisdiction over any dispute unless all of the procedures required
by the Grievance Procedure provided for in this Agreement have been timely and completely exhausted
in the dispute, and the dispute has been properly submitted to the Board pursuant to the provisions
of this Article.

     4. The Board has no jurisdiction to modify, add to or otherwise alter or amend any of the
terms of this Agreement.

     5. The Board shall consist of four members, two of whom shall be selected and appointed by the
Employer and two of whom shall be selected and appointed by the President of the Local Union. A
Board member appointed by the Union shall serve as chairman and a Board member appointed by the
Employer shall serve as vice-chairman in even years, and a Board member appointed by the Employer
shall serve as chairman and a Board member appointed by the Union shall serve as vice-chairman in
odd years. The vice-chairman shall act as chairman in his absence. Each Board member has a vote
in connection with all actions taken by the Board. In the event the four Board members cannot
reach a decision with respect to a particular dispute, the Board will select a neutral member who
will decide the dispute. In the event the Board cannot agree on a neutral member, within ten (10)
calendar days thereafter either party may request that the American Arbitration Association (AAA)
submit a list of seven potential neutrals, and the neutral shall be selected in accordance with the
rules of AAA.

     6. The Board will meet quarterly in Lafayette (unless a different location is agreed upon by
the members of the Board), provided that at such time there are cases on file with the Board for
its consideration.

     7. Any expenses incurred by Board members appointed by one of the parties to this Agreement
will be paid by that party. Any pilot called as a witness by the neutral will suffer no loss of
pay as a result of testifying at any hearing before the neutral. The fees and expenses of any
neutral member of the Board shall be borne equally by the Employer and the Union

     8. Disputes may only be submitted to the Board by the President of the Local Union or a duly
designated officer of the Union or the Employer.

     9. Decisions by the Board are final and binding on the Employer, the Union and the affected
pilots.

59

 

     10. The party appealing a final decision under the Grievance Procedure in this Agreement shall
submit the dispute for consideration by the Board, including all papers and exhibits, within
fourteen (14) calendar days of that decision. If the appeal is not made with this fourteen day
period, the Board does not have jurisdiction over the dispute.

     11. All disputes referred to the Board shall be sent to the Director of Human Resources of the
Employer and his office shall assign a docket number according to the order in which the dispute is
received.

     12. The appealing party will ensure that a copy of the petition is served on the members of
the Board.

     13. Each case submitted to the Board must state:

	 	A.	 	The question or questions at issue;

	 
	 	B.	 	a statement of the facts with supporting documents;
	 
	 	C.	 	a reference to the applicable provisions of the
Agreement alleged to have been breached;
	 
	 	D.	 	the position of the aggrieved party;
	 
	 	E.	 	the remedy requested; and
	 
	 	F.	 	the position of the opposing party.

     14. Decisions by the Board shall be rendered no later than thirty (30) days after the close of
the hearing.

     15. The Employer and the Union shall, in good faith, attempt to make a joint submission of
their dispute to the Board. If the parties are unable to agree on a joint submission, the
appealing party shall file a submission with the Board containing all of the information described
in Section 13 of this Article, and the responding party may do the same. Any party filing a
submission with the Board pursuant to this Article shall serve a copy of its submission with the
other party.

     16. The parties agree that each Board member is free to discharge his duties in an independent
manner without fear of retaliation from the Employer or the Union because of any action taken by
him in good faith in his capacity as a Board member.

60

 

Article 38. Union Representation

     1. In the event it is necessary for a Union representative to enter the Employer’s
premises to discuss the application of this Agreement, the Union representative shall notify the
manager for the particular location, and they shall arrange a mutually satisfactory time, date and
place for the visit within a ten (10) day period thereafter. The Union representative shall not
take any action that would interrupt or in any way interfere with the Employer’s operations or the
job duties of any employee. A representative of the Employer may accompany the Union
representative, if the Employer desires.

     2. The Employer will not be obligated to deal with any Union representative who has not been
designated in writing to be an authorized representative of the Union.

     3. The Union may elect or appoint Pilots to be primary job steward(s) and alternate(s) to
conduct Union business and shall notify the employer, in writing, of their election, appointment or
removal. Pilots who have been designated as primary stewards (and the alternate steward in the
absence of the primary steward) shall be granted reasonable time to investigate, present and
process grievances during their own duty hours without loss of pay to the extent such activity does
not interfere with the performance of their duties or the duties of other employees. Stewards who
serve their fellow pilots shall be considered Union representatives.

     4. The Employer and the Union desire that complaints and grievances shall be settled whenever
possible with supervisors at the location where the complaint or grievance originates. It is
understood and agreed that a steward’s activities shall fall within the scope of the following
functions:

	 	A.	 	To consult with a pilot(s) regarding a presentation of a complaint or
grievance which the pilot(s) desires to present. Stewards shall be permitted to
present grievances to management and attempt to resolve any grievance.
	 
	 	B.	 	To present a grievance or complaint to a pilot’s immediate supervisor
in an attempt to settle the matter. To the extent that it doesn’t interfere with
the Employer’s operations, Stewards shall be granted the right to consult with
pilots at their base for the purpose of enforcing the provisions of this agreement.
	 
	 	C.	 	To investigate a complaint or grievance of record in accordance with
the Grievance Procedure.

     5. Stewards and alternate stewards shall be considered union representatives. The Employer
and the Union agree that a minimum amount of time shall be spent in the performance of steward
duties.

     6. Effective on the date of the execution of this Agreement, the Union may designate one pilot
who will be permitted to act as a full-time Union Officer during his normal shift without loss of
pay; provided, however, that this Section of this Article shall expire on the 31st day of May,
2004. The normal shift for this pilot will be Monday through Friday each week and he will be
required to submit a monthly time sheet approved by the Union. Any sick days or vacation days
shall be charged against the pilot’s appropriate VSTO or STO bank. This pilot will be permitted to
perform workovers to the extent necessary to maintain his pilot currency and

61

 

proficiency and may
also bid on other workover on his days off in accordance with Article 24 of this Agreement. Any
workover requested by the Employer during his regular shift will be compensated at a rate of 50%
above his base rate of pay, and all workovers outside his shift shall be compensated at 150% of his
base rate of pay. Such pilot shall be eligible for the 5&2 Pilot Bonus but will not be eligible
for other bonuses except when he actually works as a pilot. This pilot will continue to accrue
seniority and will be entitled to all wage adjustments and benefits provided for in this Agreement.

62

 

Article 39. Union Bulletin Boards & Communications

     1. The Employer shall permit the Union to display an unlocked bulletin board at each base
that is company owned. The Union shall purchase the bulletin boards and shall be responsible for
their installation. The bulletin board shall be a maximum of four (4) feet by five (5) feet. The
bulletin boards shall only be placed in areas that have been agreed to by the Employer in advance.

     2. The bulletin boards used by the Union and Pilots covered by this agreement shall be for
posting notices of Union social and recreational affairs, meetings and elections.

     3. General distributions, posted notices and official business will bear the seal or signature
of an officer of the Union or a Pilot representative and will not contain anything defamatory,
derogative, inflammatory, negative, or of a personal nature attacking the Employer or its
representatives.

     4. The Employer may refuse to permit any posting that would violate any of the provisions of
this Agreement. Any notices posted that are not in accordance with this Article shall be removed
by the Union or by the Employer upon notice to the Union.

63

 

Article 40. Union Membership, Dues, Agency Fees & Checkoff

     1. Membership in the Union is not compulsory for any pilot employed as of the date of
this agreement or any pilot subsequently hired through May 30, 2004. These pilots have the right
to join, not join, maintain, or drop their membership in the Union as they see fit. Neither party
shall exert any pressure on, or discriminate against a pilot as regards such matters.

     2. Each pilot covered by this agreement who is hired on or after May 31, 2004, shall become a
member of the union or an agency fee payer within sixty (60) days after his/her date of hire, and
shall be required as a condition of continued employment by the Employer to maintain his/her
membership in the Union or pay an equivalent agency fee, so long as this Agreement remains in
effect. The agency fee referred to in this Section shall be equal to the Union’s regular and usual
initiation fee and its regular, uniform and usual monthly dues. Notwithstanding the foregoing,
nothing herein shall be construed to be in violation of or in conflict with the provisions of the
Railway Labor Act.

     3. During the life of this Agreement, the Employer agrees that upon receipt of a properly
executed Authorization of Payroll Deduction, voluntarily executed by a pilot, it will make
bi-weekly deductions from the pilot’s earnings after other deductions authorized by the pilot or
are required by law have been made, to cover his current standard bi-weekly union dues, assessments
and/or initiation fees or agency fees uniformly levied in accordance with the Constitution and
bylaws of the Union as set forth in the Railway Labor Act.

     4. Any authorizations for payroll deductions under this Article shall be effective the first
day of the month following its receipt by the Payroll Department and shall apply to the next
paycheck for which dues deduction or agency fees is made.

     5. The Employer remittance to the union will be accompanied by a list of the names of the
pilots for whom the deductions have been made in that particular month and the individual amounts
deducted.

     6. Collection of dues or agency fees not deducted because of insufficient current earnings,
dues or agency fees missed because of clerical error or inadvertent error in the accounting
procedure, or dues or agency fees missed due to delay in receipt of the Authorization for Payroll
Deductions, shall be the responsibility of the Union and shall not be the subject of payroll
deductions from subsequent paychecks, and the Employer shall not be responsible in any way for such
missed collections. It shall be the Union’s responsibility to verify apparent errors with the
individual Pilot prior to contacting the Payroll Department. The total or balance of unpaid dues,
assessments and/or initiation fees or agency fees due and owing the Union at the time a Pilot
terminates his employment shall be deducted from the final paycheck in accordance with applicable
law.

     7. An Authorization for Payroll Deduction under this Article shall be irrevocable for the term
of this Agreement, or for a period of one (1) year from the date the Authorization is first
executed, whichever occurs sooner. Revocation shall become effective when the pilot serves

64

 

written
notice on the Payroll Department to revoke such Authorization for payroll deduction. An
Authorization for Payroll Deduction shall automatically be revoked if:

	A.	 	the Pilot transfers to a position with the Employer not covered by the
agreement;

	 	B.	 	the Pilot’s service with the Employer is terminated;
	 
	 	C.	 	the Pilot is furloughed; or
	 
	 	D.	 	the Pilot is on an authorized leave of absence.

     8. The Union agrees to hold the Employer harmless and to indemnify the Employer against any
suits, claims, liabilities, and reasonable and customary attorneys’ fees which arise out of or by
reason of any action taken by the Employer under the terms of this Article.

65

 

Article 41. Savings Clause

     1. Should any part of this Agreement be rendered or declared invalid by reason of any
existing or subsequently enacted legislation, act of government agency, or by any decree of a court
of competent jurisdiction, such invalidation of such part or portion of this Agreement shall not
invalidate the remaining portions hereof, and they shall remain in full force and effect.

     2. In the event that any provisions of this Agreement are in conflict with or are rendered
inoperative or unlawful by virtue of any duly enacted law or regulation or any governmental agency
or commission having jurisdiction over the Employer, the Union and Employer will meet and attempt
to negotiate changes necessary, pertaining only to those provisions so affected or directly related
thereto.

66

 

Article 42. Duration

     1. This Agreement shall be effective from the 1ST day of June, 2001 through
the 31ST day of May, 2004 and shall automatically renew itself from year to year
thereafter, unless written notice of intended change is served in accordance with Section 6, Title
I of the Railway Labor Act, by either party at least sixty days prior to the termination date or
any anniversary thereof.

Dated this 12th day of July, 2001.

	 	 	 	 	 	 	 	 	 
	OFFICE AND PROFESSIONAL

EMPLOYEES INTERNATIONAL

UNION	 	PETROLEUM HELICOPTERS, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jack Bowers
	 	By:
	 	/s/ Richard Rovinelli	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	OFFICE AND PROFESSIONAL

EMPLOYEES INTERNATIONAL

UNION, LOCAL 108	 	PETROLEUM HELICOPTERS, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Stephen D. Ragin
	 	By:
	 	/s/ Michael Hurst	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	OFFICE AND PROFESSIONAL

EMPLOYEES INTERNATIONAL

UNION	 	PETROLEUM HELICOPTERS, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Mike Dorsett
	 	By:
	 	/s/ Carlin Craig	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	OFFICE AND PROFESSIONAL

EMPLOYEES INTERNATIONAL

UNION	 	PETROLEUM HELICOPTERS, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Herbert J. Jenssen
	 	By:
	 	/s/ Edward Gatza	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	OFFICE AND PROFESSIONAL .

EMPLOYEES INTERNATIONAL

UNION	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	Paul Bohelski	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

67

 

Letter of Agreement #1

April 27, 2001

Dear Captain Ragin:

Both parties recognize the importance of disability benefits to employees; therefore, it is agreed
that the Employer and the Union will form a joint labor management committee that will initially
meet no later than September 1, 2001. The Committee will explore alternatives for short-term
disability benefits and consider the possibility of rapid reaccrual as part of sick time off (STO).

	 	 	 	 	 
	Very truly yours,

	 	Agreed:	 	 
	 
	 	 	 	 
	/s/ Richard Rovinelli

	 	/s/ Stephen D. Ragin	 	 
	 

Richard Rovinelli

	 	 

Stephen D. Ragin
	 	 

68

 

Letter of Agreement #2

April 27, 2001

Dear Captain Ragin:

Within thirty (30) days after the execution of this Agreement, the parties will meet for the
purpose of establishing a “Joint Implementation/Resolution Committee.”

	 	 	 	 	 
	Very truly yours,

	 	Agreed:	 	 
	 
	 	 	 	 
	/s/ Richard Rovinelli

	 	/s/ Stephen D. Ragin	 	 
	 

Richard Rovinelli

	 	 

Stephen D. Ragin
	 	 

69

 

Letter of Agreement #3

July 12, 2001

Dear Captain Ragin:

The parties agree under Article 6, that the floppy disk version of the seniority list would be sent
to the Secretary/Treasurer of the OPEIU Local 108, and that such seniority lists shall contain all
represented pilots with the following information for each: 1) seniority number (based on bidding
seniority), 2) pilot name, 3) bidding seniority date, 4) company seniority date, and 5) status of
the pilot (including highlighting new hire pilots for the first seniority report subsequent to
their employment).

The parties also agree under Article 6, Seniority List, Section 3, that the pilots’ right to
protest to the Employer any omission or incorrect posting of the seniority list shall mean that a
pilot shall have a single protest for any unique seniority date, and will have no further protests
rights as long as the Employer does not change that date in future seniority postings.

	 	 	 	 	 
	Very truly yours,

	 	Agreed:	 	 
	 
	 	 	 	 
	/s/ Richard Rovinelli

	 	/s/ Stephen D. Ragin	 	 
	 

Richard Rovinelli

	 	 

Stephen D. Ragin
	 	 

70

 

Letter of Agreement #4

July 12, 2001

Dear Captain Ragin:

The parties agree under Article 12, Paid Days Off and Banked Days, that both VSTO and STO accrual
banks will be calculated and accrued to a pilot by the Employer on a bi-weekly (pay period) basis
instead of a monthly basis.

	 	 	 	 	 
	Very truly yours,

	 	Agreed:	 	 
	 
	 	 	 	 
	/s/ Richard Rovinelli

	 	/s/ Stephen D. Ragin	 	 
	 

Richard Rovinelli

	 	 

Stephen D. Ragin
	 	 

71

 

Letter of Agreement #5

July 12, 2001

Dear Captain Ragin:

The parties agree under Article 22, Pilot Bonuses, that all pilot bonuses shall be effective June
4, 2001 and will be paid to pilots as soon as practical.

The parties also agree under Article 22, that Air Evac operations shall have no Lead Pilots.
However, each base may have a Pilot Base Coordinator, who will be responsible for some, but not
all, duties of a Lead Pilot, and the Employer shall pay such designated Pilot Base Coordinator a
bonus of $200 per month.

	 	 	 	 	 
	Very truly yours,

	 	Agreed:	 	 
	 
	 	 	 	 
	/s/ Richard Rovinelli

	 	/s/ Stephen D. Ragin	 	 
	 

Richard Rovinelli

	 	 

Stephen D. Ragin
	 	 

72

 

Letter of Agreement #6

July 12, 2001

Dear Captain Ragin:

The parties agree under Article 24, Workover, that reference to “the greatest length of time since
his last workover at that base” in Section 3 will be modified to “the greatest length of time since
his last workover date.” In order to maintain an accurate last workover date for each pilot, the
parties agree that a pilot will be required to resubmit a workover request each time he performs a
workover (continuous workover without a day off shall be considered a single workover) if he
desires additional workover.

The parties also agree for Air Evac, Cleveland EMS, Lexington EMS and Acadian Ambulance EMS
operations, under Article 24, that these operations shall be considered one base for the
determination and award of workover(s).

	 	 	 	 	 
	Very truly yours,

	 	Agreed:	 	 
	 
	 	 	 	 
	/s/ Richard Rovinelli

	 	/s/ Stephen D. Ragin	 	 
	 

Richard Rovinelli

	 	 

Stephen D. Ragin
	 	 

73

 

Letter of Agreement #7

Jul 12, 2001

Dear Captain Ragin:

Both parties recognize the likelihood of increased grievance activity during the initial
implementation of this Agreement and desire to avoid unnecessary added costs and time commitments
of the normal grievance procedure and System Board of Adjustment during this time. Therefore, the
parties agree under Article 36, Grievance Procedure, that until the end of September 2001 (or at
the end of December 2001 if the parties agree as described below), grievances (except those
grievances as defined in Sections 3, 4, and 9) shall first be processed through Section 2, Step 1.
If the grievance is unresolved at that step (and for grievances defined in Sections 3 and 4), the
grievance will then be presented to the Joint Implementation/ Resolution Committee (“Committee”) in
an attempt to resolve the complaint as quickly and as fairly as possible. The Committee shall
review grievances only with a full and equal complement of standing members or their designees from
both the Employer and the Union, and shall respond in writing to the grievance within thirty (30)
days. If the Committee is unable to resolve the grievance, the grievance may then proceed through
the remaining steps of the grievance procedure. Until the end of September 2001 (or at the end of
December 2001 if the parties agree as described below), the ten (10) calendar day time requirement
to proceed to Section 2, Step 3 shall begin after the Committee has determined in writing that it
is unable to resolve the grievance.

The parties agree that upon mutual written agreement, this Letter of Agreement may be extended from
the end of September 2001 until the end of December 2001.

	 	 	 	 	 
	Very truly yours,

	 	Agreed:	 	 
	 
	 	 	 	 
	/s/ Richard Rovinelli

	 	/s/ Stephen D. Ragin	 	 
	 

Richard Rovinelli

	 	 

Stephen D. Ragin
	 	 

74

 

Letter of Agreement #8

July 12, 2001

Dear Captain Ragin:

The parties agree under Article 40, Union Membership, Dues, Agency Fees & Checkoff, that reference
to “Authorization for Payroll Deduction” in Section 3 shall mean the Union’s “Dues/Agency Fees
Payroll Deduction Authorization” form.

	 	 	 	 	 
	Very truly yours,

	 	Agreed:	 	 
	 
	 	 	 	 
	/s/ Richard Rovinelli

	 	/s/ Stephen D. Ragin	 	 
	 

Richard Rovinelli

	 	 

Stephen D. Ragin
	 	 

75

 

Letter of Agreement #9

July 12, 2001

Dear Captain Ragin:

The parties agree to modify Article 28, Section 2, to provide that the Employer’s 401(k) Plan shall
include pilots covered by this Agreement consistent with the terms of that Plan. Should business
conditions warrant, or if required by law, the Employer reserves the right to separate the 401(k)
Plan for pilots covered by this Agreement from other Plan participants as originally provided for
under the Agreement, however the Employer agrees to discuss with the Union any such change prior to
implementation.

	 	 	 	 	 
	Very truly yours,

	 	Agreed:	 	 
	 
	 	 	 	 
	/s/ Richard Rovinelli

	 	/s/ Stephen D. Ragin	 	 
	 

Richard Rovinelli

	 	 

Stephen D. Ragin
	 	 

76

 

Letter of Agreement #10

July 12, 2001

Dear Captain Ragin:

Both parties recognize that in the Employer’s IHTI operations, pilots have cooperated in rotating
their 14&14 work schedule each year such that the pilots have every second year off-duty with their
families for the Thanksgiving and Christmas holidays. The parties agree that this practice may
continue under Article 10, Schedules of Service.

	 	 	 	 	 
	Very truly yours,

	 	Agreed:	 	 
	 
	 	 	 	 
	/s/ Richard Rovinelli

	 	/s/ Stephen D. Ragin	 	 
	 

Richard Rovinelli

	 	 

Stephen D. Ragin
	 	 

77exv10w57

 

Exhibit 10.57

NEWPARK RESOURCES, INC.

2006 EQUITY INCENTIVE PLAN

1. Purpose.

          The Newpark Resources, Inc. 2006 Equity Incentive Plan is intended to assist Newpark
Resources, Inc., a Delaware corporation (the “Company”), in attracting, retaining and
motivating designated Employees of the Company and its Subsidiaries and to increase their interest
in the success of the Company in order to promote the Company’s long-term interests. The Plan is
designed to meet this intent by providing eligible Employees with a proprietary interest in
pursuing the long-term growth, profitability and financial success of the Company.

2. Definitions.

          In addition to the terms defined elsewhere in the Plan, Exhibit A, which is
incorporated by reference, defines terms used in the Plan and sets forth certain operational rules
related to those terms.

     3. Administration of the Plan.

          3.1 General. The Plan shall be administered by the Compensation Committee. Each member of the Compensation
Committee shall be a “non-employee director” as that term is defined in Rule 16b-3, an “outside
director” within the meaning of Section 162(m) and an “independent director” under the corporate
governance rules of any stock exchange or similar regulatory authority on which the Common Stock is
then listed, but no action of the Committee shall be invalid if this requirement is not met. The
Compensation Committee shall select one of its members as Chairman and shall act by vote of a
majority of the members present at a meeting at which a quorum is present or by unanimous written
consent. A majority of the members of the Compensation Committee shall constitute a quorum. The
Compensation Committee shall be governed by the provisions of the Company’s Bylaws and of Delaware
law applicable to the Board of Directors, except as otherwise provided herein or determined by the
Board of Directors. The Committee’s decisions and determinations under the Plan need not be
uniform and may be made selectively among Participants, whether or not the Participants are
similarly situated.

          3.2 Authority of the Compensation Committee. The Compensation Committee
shall have full discretionary power and authority, subject to the
general purposes, terms and conditions of the Plan, to implement, carry out and administer the
Plan. Without limiting the generality of the foregoing, the Compensation Committee shall have the
authority to:

          (a) interpret and administrator the Plan, any Award Agreement and any other agreement or
document executed pursuant to the Plan;

          (b) adopt, amend, modify or rescind rules, procedures and forms relating to the Plan;

          (c) select persons to receive Awards;

 

 

          (d) determine the number of Shares subject to Awards, the Fair Market Value of the Common
Stock and the other terms and conditions of each Award (which need not be uniform), including,
without limitation, the type of Award to be granted, vesting schedules, forfeiture restrictions and
other terms and conditions relating to the exercisability of Awards, and all other provisions of
each Award Agreement;

          (e) determine whether Awards will be granted singly, in combination, or in tandem with, in
replacement of, or as alternatives to, other Awards under the Plan or any other incentive or
compensation plan of the Company or any Subsidiary;

          (f) grant waivers of Plan or Award conditions and remove or adjust any restrictions or
conditions upon Awards, including accelerating or otherwise modifying the date on which any Award
becomes vested, exercisable or transferable and extending the term of any Award (subject to the
maximum term limitations set forth in the Plan), including extending the period following the
termination of a Participant’s employment during which any Award may remain outstanding or be
exercised;

          (g) with the consent of the Optionee, amend or terminate any outstanding Award Agreement;

          (h) correct any defect, supply any omission or reconcile any inconsistency in the Plan, any
Award or any Award Agreement;

          (i) determine whether an Award has been earned; and

          (j) make any other determination and take any other action that the Compensation Committee
deems necessary or desirable for administration of the Plan.

All decisions, determinations and other actions of the Compensation Committee made or taken in
accordance with the terms of the Plan shall be final and conclusive and binding upon all parties
having an interest therein.

          3.3 Delegation of Authority. Any of the powers and
responsibilities of the Compensation Committee may delegated to any
subcommittee, in which case the acts of the subcommittee shall be deemed to be acts of the
Compensation Committee hereunder. In addition, the Compensation Committee may delegate to
one or more officers or Employees of the Company or any Subsidiary the authority, subject to such
terms as the Compensation Committee shall determine, to perform such functions, including
administrative functions, as the Compensation Committee may determine, provided that in no case
shall any such officer or Employee be authorized to take any action that would (a) result in the
loss of an exemption under Rule 16b-3 for Awards granted to Section 16 Insiders, (b) cause Awards
intended to qualify as “performance-based compensation” under Section 162(m) to fail to so qualify,
or (c) be inconsistent with Section 157 and other applicable provisions of the Delaware General
Corporation Law. Any action taken by any such officer or Employee within the scope of the
authority delegated by the Compensation Committee shall be deemed for all purposes to have been
taken by the Compensation Committee, and, except as otherwise specifically provided, references in
the Plan to the Compensation Committee shall include any such officer or Employee. The
Compensation Committee and, to the extent it so provides, any subcommittee,

2

 

shall have sole authority to determine whether to review any actions or interpretations of any such officer or
Employee, and if the Compensation Committee shall decide to conduct such a review, any such actions
or interpretations of any such officer or Employee shall be subject to approval, disapproval or
modification by the Compensation Committee.

          3.4 Monitoring Awards. Notwithstanding any delegation of authority by the
Compensation Committee, it shall maintain control of the operation of the Plan. At least annually,
the Compensation Committee, in conjunction with the Audit Committee of the Board of Directors of
the Company, shall conduct or cause the conduct of an audit of the operation of the Plan to verify
that the Plan has been operated and Awards have been documented and maintained by the officers of
the Company in accordance with the directions of the Compensation Committee. Without limiting the
generality of the foregoing, one of the purposes of such an audit will be to determine that the
executed Award Agreements are consistent with the Awards made by the Committee and properly reflect
the names of the Participants to whom such Awards were granted, the applicable Dates of Grant,
vesting provisions and expiration dates, the type and quantity of Awards granted to each
Participant and, if applicable, the applicable exercise prices.  

          3.5 Limitation on Liability.

               3.5.1 The Compensation Committee may employ attorneys, consultants, accountants, agents and
other persons, and the Compensation Committee shall be entitled, in good faith, to rely and act
upon the advice, opinions and valuations of any such persons. In addition, the Compensation
Committee shall be entitled, in good faith, to rely and act upon any report or other information
furnished to it by any officer, director or Employee of the Company.

               3.5.2 No member of the Compensation Committee, nor any person acting pursuant to authority
delegated by the Compensation Committee, nor any officer, director or Employee of the Company
acting at the direction or on behalf of the Compensation Committee, shall be liable for any action,
omission or determination relating to the Plan, and the Company shall, to the fullest extent
permitted by law, indemnify and hold harmless each member of the Compensation Committee, each
person acting pursuant to authority delegated by the Compensation Committee,
and each other officer, director or Employee of the Company to whom
any duty or power relating to the administration or interpretation of the Plan has been delegated
against any cost, expense (including counsel fees), liability or other pecuniary loss (including
any sum paid in settlement of a claim with the approval of the Compensation Committee) arising out
of any action, omission or determination relating to the Plan, unless, in either case, such action,
omission or determination was taken or made by such member, director, Employee or other person in
bad faith and without reasonable belief that it was in the best interests of the Company.

     4. Number of Shares Issuable in Connection with Awards.

          4.1 Shares Subject to the Plan. The maximum number of Shares that may be issued in connection with Awards granted under the Plan
is 2,000,000, and the number of Shares that are subject to Awards outstanding at any one time under
the Plan may not exceed the number of Shares that then remain available for issuance under the
Plan. The maximum number

3

 

of Shares that may be issued in connection with Incentive Stock Options
granted under the Plan is 2,000,000. The Company at all times shall reserve and keep available
sufficient Shares to satisfy the requirements of the Plan. Shares issued under the Plan may be
either authorized and unissued shares or treasury shares.

          4.2 Share Counting Rules. For purposes of Section 4.1, the following Shares shall not be considered to have been issued
under the Plan: (a) Shares remaining under an Award that terminates without having been exercised
in full; (b) Shares that have been forfeited in accordance with the terms of the applicable Award;
and (c) Shares withheld, in satisfaction of the grant or exercise price or tax withholding
requirements, from Shares that would otherwise have been delivered pursuant to an Award. In
addition, to the extent permitted by Applicable Laws, Shares subject to Awards issued in assumption
of, or in substitution for, any outstanding awards of any entity acquired in any form of business
combination by the Company or any of its Subsidiaries shall not be counted against the Shares
available for issuance pursuant to the Plan.

          4.3 Individual Award Limits. The maximum number of Shares that may be covered by Options and Stock Appreciation Rights (in
the aggregate) granted under the Plan to any single Participant in any calendar year shall not
exceed 200,000, and the maximum number of Shares that may be covered by all other Awards (in the
aggregate) granted under the Plan to any single Participant in any calendar year shall not exceed
100,000. This limitation shall be applied and construed consistently with Section 162(m).

          4.4 Adjustments. The limits provided for in this Section 4 shall be subject to adjustment as provided in Section
15.

     5. Eligibility and Participation.

          The Compensation Committee will select Participants from among those Employees who, in the
opinion of the Compensation Committee, are in a position to make significant contributions to the
long-term performance and growth of the Company and its Subsidiaries. In addition, the
Compensation Committee may grant Awards in connection with the engagement of an Employee who is
expected to make significant contributions to the long-term performance and growth of the Company,
provided that a prospective Employee may not receive any payment or exercise any right relating to
an Award until such person’s employment with the Company has commenced. An Employee on leave of
absence may be considered as still in the employ of the Company for purposes of eligibility for
participation in the Plan, if so determined by the Compensation Committee. Directors of the
Company and its Subsidiaries who are not also employees of the Company or a Subsidiary shall not be
eligible to receive Awards under the Plan.

     6. Award Agreements.

          Each Award granted under the Plan shall be evidenced by an Award Agreement in a form approved
by the Compensation Committee. Each Award Agreement shall be subject to all applicable terms and
conditions of the Plan, shall include such terms and conditions as the Compensation Committee deems
appropriate, consistent with the provisions of the Plan, and shall be executed by the Participant
and a person designated by the Compensation Committee.

4

 

     7. Options.

          7.1 Grant of Options. The Compensation Committee may grant Options in such amounts, at such times and to such
Employees as the Compensation Committee, in its discretion, may determine in accordance with the
eligibility criteria set forth in Section 5. The Compensation Committee shall designate at the
time of grant whether the Option is intended to constitute an Incentive Stock Option or a
Nonstatutory Option.

          7.2 Option Price. The Option Price of the Shares subject to each Option shall be determined by the Compensation
Committee, but shall not be less than the Fair Market Value of the Common Stock on the Date of
Grant, except in the case of replacement or substitute Options issued by the Company in connection
with an acquisition or other corporate transaction.

          7.3 Option Period. The Award Agreement shall specify the term of each Option. The term shall commence on the Date
of Grant and shall be 10 years or such shorter period as is determined by the Compensation
Committee. Each Option shall provide that it is exercisable over its term from the Date of Grant
or over time in such periodic installments, or based on the satisfaction of such criteria
(including, without limitation, upon the satisfaction of Performance Criteria), as the Committee in
its discretion may determine. The vesting provisions for Options granted under the Plan need not
be uniform. Unless the Committee otherwise determines at the time of grant, if an Option is
subject to vesting in periodic installments and a Participant shall not in any period purchase all
of the Shares that the Participant is entitled to purchase in such period, the Participant may
purchase all or any part of such Shares at any time prior to the expiration of the Option.

          7.4 Exercise of Options. Each Option may be exercised in whole or in part (but not as to fractional shares) by the
delivery of an executed Notice of Exercise in the form prescribed from time to time by the
Compensation Committee, accompanied by payment of the Option Price and any amounts required to be
withheld for tax purposes under Section 14. If an Option is exercised by any person other than the
Participant, the Compensation Committee may require satisfactory evidence that the person
exercising the Option has the right to do so. The Compensation Committee may require any partial
exercise of an Option to equal or exceed a specified minimum number of Shares.

          7.5 Payment of Exercise Price. The Option Price shall be paid in full in cash or by check acceptable to the Compensation
Committee or, if and to the extent permitted by the Compensation Committee, (a) through the
delivery of Shares which have been outstanding for at least six months or such other minimum period
as may be required by applicable accounting rules to avoid a charge to the Company’s earnings for
financial reporting purposes (unless the Compensation Committee approves a shorter period) and
which have a Fair Market Value on the date the Option is exercised equal to the Option Price, (b)
to the extent permitted by Applicable Laws, by a Cashless Exercise, or (c) by any combination of
the foregoing permissible forms of payment.

          7.6 Employment Requirements. Unless otherwise provided by the Compensation Committee and except as otherwise provided in
Section 7.7, an Option may not be exercised unless from the Date of Grant to the date of exercise
the Participant remains

5

 

continuously in the employ of the Company. The Compensation Committee
shall determine, in its discretion in the particular case and subject to any requirements of
Applicable Laws, whether and to what the extent the period of continuous employment shall be deemed
to include any period in which the Participant is on leave of absence with the consent of the
Company. Unless the Compensation Committee expressly provides otherwise, a Participant’s service
as an Employee with the Company will be deemed to have ceased upon termination of the Participant’s
employment with the Company and its Subsidiaries (whether or not the Participant continues in the
service of the Company or its Subsidiaries in some capacity other than that of an Employee).

          7.7 Exercise of Options on Termination of Employment.

               7.7.1 Unless otherwise provided by the Compensation Committee, upon the termination of a
Participant’s employment with the Company and its Subsidiaries by reason of death or Disability,
(a) all Options then held by the Participant, to the extent exercisable on the date of termination
of employment, shall remain in full force and effect and may be exercised pursuant to the
provisions thereof at any time until the earlier of the end of the fixed term thereof and the
expiration of 12 months following termination of the Participant’s employment, and (b) all Options
then held by the Participant, to the extent not then presently exercisable, shall terminate as of
the date of such termination of employment and shall not be exercisable thereafter.

               7.7.2 Unless otherwise provided by the Compensation Committee, upon the termination of the
Participant’s employment with the Company and its Subsidiaries for any reason other than the
reasons set forth in Section 7.7.1 or a termination for Cause, (a) all Options then held by the
Participant, to the extent exercisable on the date of termination of employment, shall remain in
full force and effect and may be exercised pursuant to the provisions thereof at any time until the
earlier of the end of the fixed term thereof and the expiration of 90 days following termination of
the Participant’s employment (except that the 90-day period shall be extended to 12 months from the
date of termination if the Participant shall die during such 90-day period), and (b) all Options
then held by the Participant, to the extent not then presently exercisable, shall terminate as of
the date of such termination of employment and shall not be exercisable thereafter.

               7.7.3 Unless otherwise provided by the Compensation Committee, in the event of a Participant’s
termination for Cause, all Options held by the Participant, whether vested or not, shall terminate
concurrently with the first discovery by the Company of any reason for the Participant’s
termination for Cause and shall not be exercisable thereafter. If an Participant’s employment with
the Company or any Subsidiary is suspended pending an investigation of whether there shall be a
termination for Cause, all of the Participant’s rights under any Options then held by the
Participant, including, without limitation, the right to exercise such Options, shall likewise be
suspended during such period of investigation.

          7.8 Incentive Stock Options. Incentive Stock Options shall be subject to the following additional provisions:

6

 

               7.8.1 The aggregate Fair Market Value (determined as of the Date of Grant) of the Common Stock
with respect to which Incentive Stock Options are exercisable for the first time by any individual
Participant during any one calendar year (under all plans of the Company and any parent or
Subsidiary) may not exceed the maximum amount permitted under Section 422 of the Code (currently
$100,000). To the extent any Incentive Stock Option would exceed this limit, the portion of the
Option in excess of such limit shall be treated as a Non-Qualified Stock Option for all purposes.
The provisions of this Section 7.8.1 shall be construed and applied in accordance with
Section 422(d) of the Code and the regulations promulgated thereunder.

               7.8.2 No Incentive Stock Option may be granted to a Participant if, at the time of the
proposed grant, the Participant owns stock possessing more than 10% of the total combined voting
power of all classes of stock of the Company or of any parent or Subsidiary of the Company, unless
(a) the Option Price is at least 110% of the Fair Market Value of a share of Common Stock on the
Date of Grant, and (bi) the Incentive Stock Option is not exercisable after the expiration of five
years from the Date of Grant.

               7.8.3 If a Participant sells or otherwise disposes of any Shares acquired pursuant to the
exercise of an Incentive Stock Option on or before the later of (a) the date two years after the
Date of Grant of the Incentive Stock Option, and (b) the date one year after the exercise of the
Incentive Stock Option (in either case, a “Disqualifying Disposition”), the Participant
shall notify the Company in writing of the Disqualifying Disposition within 10 days of the date
thereof. In the event of a Disqualifying Disposition, the Option will not qualify for incentive
stock option treatment.

               7.8.4 If the Compensation Committee exercises its discretion to permit an Incentive Stock
Option to be exercised by a Participant more than three months after the termination of a
Participant’s employment for any reason other than death or Disability, the Incentive Stock Option
will thereafter be treated as a Non-Qualified Stock Option for all purposes. For purposes of this
Section 7.8.4, a Participant’s employment will be treated as continuing uninterrupted during any
period that the Participant is on military leave, sick leave or another approved leave of absence
if the period of leave does not exceed 90 consecutive days, unless reemployment on the expiration
of such leave is guaranteed by statute or by contract.

               7.8.5 Any Option which is designated by the Compensation Committee as an Incentive Stock
Option but fails, for any reason, to meet the requirements for Incentive Stock Option treatment
shall be treated for tax purposes as a Non-Qualified Stock Option.

          7.9 Additional Terms and Conditions. Each Option, and any shares of Common Stock issued in connection with an Option, shall be
subject to such additional terms and conditions not inconsistent with the Plan as are determined by
the Compensation Committee and set forth in the applicable Award Agreement.

     8. Restricted Stock

          8.1 Grant of Restricted Stock. The Compensation Committee may offer Awards of Restricted Stock in such amounts, at such times
and to such Employees as the

7

 

Compensation Committee, in its discretion, may determine in accordance
with the eligibility criteria set forth in Section 5.

          8.2 Purchase Price. The purchase price of the Shares subject to a Restricted Stock Award shall be determined by the
Compensation Committee and may be less than the Fair Market Value (but not less than the par value)
of the Shares on the Date of Grant. Without limiting the generality of the foregoing, the
Compensation Committee may determine that eligible Employees may be issued Restricted Stock in
consideration for past services actually rendered to the Company and its Subsidiaries having a
value of not less than the par value of the Shares subject to the Award. The Committee shall
determine the methods by which the purchase price may be paid or deemed paid and the form of
payment.

          8.3 Award Agreement; Acceptance by Participant. Promptly following the grant of each Restricted Stock Award, the Compensation Committee shall
cause to be delivered to the applicable Participant an Award Agreement that evidences the Award.
The Participant shall accept the Award by signing and delivering to the Company his or her Award
Agreement, accompanied by full payment of the purchase price, within 30 days from the date the
Award Agreement was delivered to the Participant. If the Participant does not so accept the
Restricted Stock Award within such 30-day period, then the offer of the Award shall terminate
unless the Compensation Committee otherwise determines.

          8.4 Restrictions. At the time of grant of each Restricted Stock Award, the Compensation Committee shall determine
the Restriction Period that will apply to the Award and the forfeiture and vesting restrictions,
restrictions on transferability and other restrictions (including, without limitation, limitations
on the right to vote Restricted Stock or the right to receive dividends on Restricted Stock) that
will apply to the Award during the Restriction Period. These restrictions may lapse separately or
in combination at such times, under such circumstances (including based on achievement of
Performance Criteria or future service requirements or both), in such installments or otherwise, as
the Compensation Committee may determine in its discretion.

          8.5 Forfeiture. Except as otherwise determined by the Compensation Committee, upon termination of the
Participant’s employment during the applicable Restriction Period, Restricted Stock that is at that
time subject to restrictions shall be forfeited and reacquired by the Company or shall be subject
to a repurchase option in favor of the Company, as may be specified in the Award Agreement;
provided, however, that, the Compensation Committee, in its discretion, may (a) provide in any
Award Agreement that restrictions or forfeiture conditions relating to Restricted Stock will be
waived in whole or in part in the event of terminations resulting from specified causes, and (b) in
other cases waive in whole or in part restrictions or forfeiture conditions relating to Restricted
Stock.

          8.6 Stock Certificates. Restricted Stock granted under the Plan may be evidenced in such manner as the Compensation
Committee shall determine. If certificates representing Restricted Stock are registered in the
name of the Participant, the Compensation Committee may require that such certificates bear an
appropriate legend referring to the terms, conditions and restrictions
applicable to such Restricted Stock, that the Company retain physical

8

 

possession of thecertificates, and that the Participant deliver a stock power to the Company, endorsed in blank,
relating to the Restricted Stock.

          8.7 Dividend Rights. Unless otherwise set forth in the Award Agreement, (a) any regular cash dividends declared and
paid with respect to Shares subject to a Restricted Stock Award shall be paid to the Participant at
the same time they are paid to all other stockholders of the Company, and (b) Shares distributed in
connection with a stock split or stock dividend, and any other cash or property (including
securities of the Company or other issuers) distributed as a dividend (other than regular cash
dividends), shall be subject to restrictions and forfeiture conditions to the same extent as the
Restricted Stock with respect to which such Shares, cash or other property have been distributed,
and all references to Restricted Stock in the Plan or the applicable Award Agreement shall be
deemed to include such Shares, cash or other property.

          8.8 Voting Rights. Unless otherwise set forth in the Award Agreement, all voting rights appurtenant to the Shares
subject to a Restricted Stock Award shall be exercised by the Participant.

          8.9 Termination of the Restriction Period. Upon satisfaction of the terms and conditions specified in the Award Agreement that apply to a
Restriction Period, (a) the Participant shall be entitled to have the legend referred to in Section
8.6 removed from his or her shares of Restricted Stock after the last day of the Restriction
Period, and (b) if the Company has retained possession of the certificates representing the shares
of Restricted Stock, the Company shall promptly deliver such certificates to the Participant. If
the terms and conditions specified in the Award Agreement that apply to a Restriction Period have
not been satisfied, the Restricted Stock subject to the Award shall be forfeited and reacquired by
the Company or shall be subject to a repurchase option in favor of the Company, as may be specified
in the Award Agreement

          8.10 Additional Terms and Conditions. Each Award of Restricted Stock, and all Shares of Restricted Stock granted or offered for sale
hereunder, shall be subject to such additional terms and conditions not inconsistent with the Plan
as are prescribed by the Compensation Committee and set forth in the applicable Award Agreement.

     9. Restricted Stock Units.

          9.1 Grant of Restricted Stock Units. The Compensation Committee may make Awards of Restricted Stock Units in such amounts, at such
times and to such Employees as the Compensation Committee, in its discretion, may
determine in accordance with the eligibility criteria set forth in Section 5. A Participant
granted Restricted Stock Units shall not have any of the rights of a stockholder with respect to
the Shares subject to an Award of Restricted Stock Units, including any right to vote or to receive
other distributions on the Shares, until certificates for the Shares subject to the Award shall
have been issued in the Participant’s name in accordance with the terms of the applicable Award
Agreement.

          9.2 Vesting and Other Terms. At the time of grant of each Award of Restricted Stock Units, the Compensation Committee shall
determine the Restriction Period that will apply to the Award and shall specify the maturity date
applicable to each grant of Restricted Stock Units, which shall be no earlier than the vesting date
or dates of the Award and may be

9

 

determined at the election of the Participant. During the
Restriction Period, Restricted Stock Units shall be subject to such restrictions on
transferability, risk of forfeiture and other restrictions as the Compensation Committee may
impose, which restrictions may lapse separately or in combination at such times, under such
circumstances (including based on achievement of Performance Criteria or future service
requirements or both), in such installments or otherwise as the Committee may determine in its
discretion. If the terms and conditions specified in the Award Agreement have not been satisfied
by the end of the Restriction Period, the Restricted Stock Units subject to the Restriction Period
shall become null and void, and the Participant shall forfeit all rights with respect to such
Award.

          9.3 Termination of Employment. Except as otherwise determined by the Compensation Committee, upon termination of the
Participant’s employment during the applicable Restriction Period, Restricted Stock Units that are
at that time subject to restrictions shall be null and void, and the Participant shall forfeit all
rights with respect to such Awards.

          9.4 Settlement. On the maturity date, the Company shall, subject to the terms of the Plan and the Award
Agreement, transfer to the Participant one Share for each Restricted Stock Unit scheduled to be
paid out on such date and not previously forfeited. The Compensation Committee shall specify the
purchase price, if any, to be paid by the Participant to the Company for such Shares and shall
determine the methods by which the purchase price may be paid or deemed paid and the form of the
payment. The Compensation Committee may permit a Participant to elect to defer receipt of payment
of all or part of any Award of Restricted Stock Units pursuant to such rules and regulations as may
be adopted by the Compensation Committee or as may be specified in the applicable Award Agreement,
provided any such deferral shall satisfy the requirements of Section 409A of the Code and any
regulations or rulings promulgated by the Internal Revenue Service thereunder.

          9.5 Additional Terms and Conditions. Each Award of Restricted Stock Units, and all Shares issued in settlement of Restricted Stock
Units, shall be subject to such additional terms and conditions not inconsistent with the Plan as
are prescribed by the Compensation Committee and set forth in the applicable Award Agreement.

     10. Stock Appreciation Rights.

          10.1 Grant of Stock Appreciation Rights. The Compensation Committee may make Awards of Stock Appreciation Rights in such amounts, at such
times and to such Employees as the Compensation Committee, in its discretion, may determine in
accordance with the eligibility criteria set forth in Section 5. If a Stock Appreciation Right is
granted to a Section 16(b) Insider, the Award Agreement shall incorporate all the terms and
conditions at the time necessary to assure that the subsequent exercise of the Stock Appreciation
Right shall qualify for the safe-harbor exemption from short-swing profit liability provided by
Rule 16b-3.

          10.2 General Terms. A Stock Appreciation Right shall confer on the Participant the right to receive in Shares, cash
or a combination thereof (as may be determined by the Compensation Committee in its discretion) the
value equal to the excess of the Fair Market Value of one Share on the date of exercise over the
exercise price for the Stock Appreciation Right, with respect to every Share for which the Stock
Appreciation Right is

10

 

granted (the “SAR Settlement Value”). At the time of grant, the
Stock Appreciation Right must be designated by the Compensation Committee as either a tandem Stock
Appreciation Right or a stand-alone Stock Appreciation Right and, if not so designated, shall be
deemed to be a stand-alone Stock Appreciation Right. A tandem Stock Appreciation Right is a Stock
Appreciation Right that is granted in tandem with an Option and only may be granted at the same
time as the Option to which it relates. The exercise of a tandem Stock Appreciation Right shall
cancel the related Option for a like number of Shares, and the exercise of the related Option
similarly shall cancel the tandem Stock Appreciation Right for a like number of Shares. Tandem
Stock Appreciation Rights shall, except as specifically set forth in this Section 10 or in the
applicable Award Agreement, be subject to the same terms and conditions as apply to the related
Option. Stand-alone Stock Appreciation Rights shall, except as specifically set forth in this
Section 10 or in the applicable Award Agreement, be subject to the same terms and conditions
generally applicable to Nonstatutory Stock Options as set forth in Section 7.

          10.3 Exercise Price. The exercise price of each Stock Appreciation Right shall be determined by the Compensation
Committee, but shall not be less than the Fair Market Value of the Common Stock on the Date of
Grant.

          10.4 Other Terms. The Compensation Committee shall determine the term of each Stock Appreciation Right. The term
shall commence on the Date of Grant and shall be 10 years or such shorter period as is
determined by the Compensation Committee. The Compensation Committee also shall determine the time
or times at which and the circumstances under which a Stock Appreciation Right may be exercised in
whole or in part, the method of exercise, the method of settlement and the form of consideration
payable in settlement. The Compensation Committee may provide for Stock Appreciation Rights to
become exercisable at one time or from time to time, periodically or otherwise (including, without
limitation, upon the satisfaction of Performance Criteria), as to such number of Shares or
percentage of the Shares subject to the Stock Appreciation Right as the Compensation Committee
determines.

          10.5 Exercise. Each Stock Appreciation Right may be exercised in whole or in part (but not as to fractional
shares) by the delivery of an executed Notice of Exercise in the form prescribed from time to time
by the Compensation Committee, accompanied by payment of any amounts required to be withheld for
tax purposes under Section 14. If a Stock Appreciation Right is exercised by any person other than
the Participant, the Compensation Committee may require satisfactory evidence that the person
exercising the Option has the right to do so. Upon the exercise of a Stock Appreciation Right, the
Participant shall be entitled to receive the SAR Settlement Value from the Company for each Share
as to which the Stock Appreciation Right has been exercised. The Company shall pay the SAR
Settlement Value in Shares valued at Fair Market Value on the exercise date, in cash or any
combination thereof, as determined by the Compensation Committee. The Compensation Committee may
permit a Participant to elect to defer receipt of payment of all or part of the SAR Settlement
Value pursuant to such rules and regulations as may be adopted by the Compensation Committee or as
may be specified in the applicable Award Agreement, provided any such deferral shall satisfy the
requirements of Section 409A of the Code and any regulations or rulings promulgated by the Internal
Revenue Service thereunder. The Compensation Committee may require any partial exercise of a Stock
Appreciation Right to equal or exceed a specified minimum number of Shares.

11

 

          10.6 Additional Terms and Conditions. Each Award of Stock Appreciation Rights, and all Shares issued in settlement of Stock
Appreciation Rights, shall be subject to such additional terms and conditions not inconsistent with
the Plan as are prescribed by the Compensation Committee and set forth in the applicable Award
Agreement.

     11. Other Stock-Based Awards.

          The Compensation Committee may grant to Employees equity-based or equity-related Awards not
otherwise described herein, alone or in tandem with other Awards, in such amounts and subject to
such terms and conditions as the Compensation Committee shall determine from time to time in its
sole discretion (“Other Stock-Based Awards”). Without limiting the generality of the
foregoing, Other Stock-Based Awards may (a) involve the transfer of restricted or unrestricted
shares of Common Stock to Participants, either at the time of grant or thereafter, or payment in
cash or otherwise of amounts based on the value of shares of CommonStock, (b) be subject to performance-based or service-based conditions, (c) be granted as, or
in payment of, a bonus, or to provide incentives or recognize special achievements or
contributions, (d) be designed to comply with Applicable Laws of jurisdictions other than the
United States, and (e) be designed to qualify for the performance-based compensation exception
under Section 162(m); provided, that each Other Stock-Based Award shall be denominated in, or shall
have a value determined by reference to, a number of shares of Common Stock that is specified at
the time of the grant of the Award. Cash awards, as an element of or supplement to any other Award
under the Plan, also may be granted pursuant to this Section 11.

     12. Performance Based Awards.

          12.1 Performance Criteria. Awards made pursuant to the Plan may be made
subject to the attainment of performance goals
relating to one or more business criteria (“Performance Criteria”). For purposes of Awards
that are intended to qualify for the performance-based compensation exception under Section 162(m),
the Performance Criteria shall (a) be objective business criteria and otherwise meet the
requirements of Section 162(m), including the requirement that the level or levels of performance
targeted by the Compensation Committee result in the achievement of performance goals being
“substantially uncertain,” and (b) relate to one or more of the following performance measures: (i)
revenues or net sales; (ii) earnings before or after deduction for all or any portion of interest,
taxes, depreciation, amortization or other items, whether or not on a continuing operations or an
aggregate or per share basis; (iii) return on equity, investment, capital or assets; (iv) margins;
(v) one or more operating ratios; (vi) borrowing levels, leverage ratios or credit ratings; (vii)
market share; (viii) capital expenditures; (ix) cash flow; (x) stock price, growth in stockholder
value relative to one or more stock indices or total stockholder return; (xi) budget and expense
management; (xii) working capital turnover and targets; (xiii) sales of particular products or
services, market penetration, geographic expansion or new concept development; (xiv) customer
acquisition, expansion and retention; (xv) acquisitions and divestitures (in whole or in part),
joint ventures, strategic alliances, spin-offs, split-ups and the like; (xvi) reorganizations,
recapitalizations, restructurings and financings (debt or equity); (xvii) transactions that would
constitute a Change in Control; or (xviii) any combination of the foregoing. Performance Criteria
measures, and targets with respect thereto, determined by the Compensation Committee need not be
based upon an increase, a positive or improved result or avoidance of loss.

12

 

          12.2 Additional Provisions Applicable to Performance Criteria. Any Performance
Criteria may be used to measure the performance of the Company as a whole or
with respect to any business unit, Subsidiary or business segment of the Company, either
individually, alternatively or in any combination, and may be measured either annually or
cumulatively over a period of years, on an absolute basis or relative to a pre-established target,
to previous period results or to a designated comparison group, in each case as specified by the
Compensation Committee in the Award. To the extent required by Section 162(m), prior to the
payment of any compensation under an Award intended to qualify as performance-based
compensation under Section 162(m), the Compensation Committee shall certify the extent to which any
such Performance Criteria and any other material terms under such Award have been satisfied (other
than in cases where such Performance Criteria relate solely to the increase in the value of the
Common Stock). To the extent Section 162(m) is applicable, the Compensation Committee may not in
any event increase the amount of compensation payable to a Participant subject to Section 162(m)
upon the satisfaction of any Performance Criteria.

          12.3 Adjustments to Performance Criteria. The Compensation Committee may, with respect to any Performance Period, make such adjustments to
Performance Criteria as it may deem appropriate to compensate for, or reflect, (a) asset
write-downs or write-ups; (b) litigation, claims, judgments or settlements; (c) the effect of
changes in tax law, accounting principles or other laws or provisions affecting reported results;
(d) discontinued operations and divestitures; (e) mergers, acquisitions and accruals for
reorganization and restructuring programs; and (f) extraordinary or other unusual or non-recurring
item; provided, however, with respect to Awards intended to qualify as performance-based
compensation under Section 162(m), such adjustments shall be made only to the extent that the
Compensation Committee determines that such adjustments may be made without a loss of deductibility
of the compensation includible with respect to the Awards under Section 162(m).

          12.4 Performance Periods. The attainment of Performance Criteria shall be measured over performance periods of one year or
more (“Performance Periods”), as may be established by the Compensation Committee.
Performance Criteria for any Performance Period shall be established not later than the earlier of
(a) 90 days after the beginning of the Performance Period, or (b) the time 25% of the Performance
Period has elapsed.

          12.5 Right of Recapture. If, at any time after the date on which a Participant has been granted or becomes vested in or
paid an Award pursuant to the achievement of Performance Criteria, the Compensation Committee
determines that the earlier determination as to the achievement of the Performance Criteria was
based on incorrect data and that in fact the Performance Criteria had not been achieved or had been
achieved to a lesser extent than originally determined and a portion of the Award would not have
been granted, vested or paid given the correct data, then (a) any portion of the Award that was so
granted shall be forfeited and any related Shares (or, if such Shares were disposed of, the cash
equivalent) shall be returned to the Company, (b) any portion of the Award that became so vested
shall be deemed to be not vested and any related Shares (or, if such Shares were disposed of, the
cash equivalent) shall be returned to the Company, and (c) any portion of the Award so paid to the
Participant shall be repaid by the Participant to the Company upon notice from the Company, in each
case as and to the extent provided by the Compensation Committee.

13

 

          12.6 Section 162(m). In the case of an Award intended to be eligible for the performance-based compensation exception
under Section 162(m), the Plan and such Award shall be construed to the maximum extent permitted by
law in a manner consistent with qualifying the Award for such exception.

     13. Restrictions on Transfer.

          13.1 Restrictions on Transfer. Subject to the further provisions of this Section 13.1, Awards may not be transferred other than
by will or by the laws of descent and distribution, and during a Participant’s lifetime an Award
requiring exercise may be exercised only by the Participant (or in the event of the Participant’s
incapacity, the person or persons legally appointed to act on the Participant’s behalf). No Award
or any interest therein shall be subject to attachment, execution, garnishment, sequestration, the
laws of bankruptcy or any other legal or equitable process. The foregoing notwithstanding, Awards
(other than Incentive Stock Options and Stock Appreciation Rights granted in tandem therewith) may
be transferred to one or more transferees during the lifetime of the Participant, and may be
exercised by such transferees in accordance with the terms of such Award, but only if and to the
extent such transfers are permitted by the Compensation Committee in its discretion, subject to any
terms and conditions which the Committee may impose thereon. If a transfer is approved by the
Compensation Committee, the transfer shall only be effective upon written notice to the Company
given in such form and manner as may be prescribed by the Compensation Committee. Anything herein
to the contrary notwithstanding, transfers of an Award by a Participant for consideration are
prohibited.

          13.2 Designation and Change of Beneficiary. Each Participant may file with the Compensation Committee a written designation of one or more
persons as the beneficiary who shall be entitled to receive the rights or amounts payable with
respect to an Award due under the Plan upon the Participant’s death. A Participant may, from time
to time, revoke or change his or her beneficiary designation without the consent of any prior
beneficiary by filing a new designation with the Compensation Committee. The last such designation
received by the Compensation Committee shall be controlling; provided, however, that no
designation, or change or revocation thereof, shall be effective unless received by the
Compensation Committee prior to the Participant’s death, and in no event shall it be effective as
of a date prior to such receipt. If no beneficiary designation is filed by the Participant, the
beneficiary shall be deemed to be the Participant’s estate.

          13.3 Provisions Applicable to Transferees. A beneficiary, transferee or other person claiming any rights under the Plan from or through any
Participant shall be subject to all terms and conditions of the Plan and any Award Agreement or
other document applicable to the Participant, except as otherwise determined by the Compensation
Committee, and to any additional terms and conditions deemed necessary or appropriate by the
Compensation Committee. The Compensation Committee shall have full and exclusive authority to
interpret and apply the provisions of the Plan to transferees to the extent not specifically
addressed herein.

     14. Withholding and Other Tax Provisions.

          14.1 Withholding. The Company may require the Participant to pay to the Company the amount of any taxes that the
Company is required by applicable federal, state,

14

 

foreign, local or other law to withhold with
respect to the grant, vesting, exercise or settlement of an Award. The Company shall not be
required to issue any Shares under the Plan until such obligations are satisfied in full. The
Compensation Committee may, in its sole and absolute discretion in the particular case, permit or
require a Participant to satisfy his or her tax withholding obligations by any of the following
means (or a combination of any of the following means): (a) by paying cash to the Company, (b) by
having the Company withhold a number of Shares that would otherwise be issued to the Participant
(or become vested in the case of Restricted Shares) having a Fair Market Value equal to the tax
withholding obligations, (c) surrendering a number of Shares the Participant already owns having a
Fair Market Value equal to the tax withholding obligations, or (d) entering into such other
arrangement as is acceptable to the Compensation Committee in its sole discretion. The value of
any Shares withheld or surrendered may not exceed the employer’s minimum tax withholding obligation
and, to the extent such Shares were acquired by the Participant from the Company as compensation,
the Shares must have been held for the minimum period required by applicable accounting rules to
avoid a charge to the Company’s earnings for financial reporting purposes. The Company shall also
have the right to deduct from any and all cash payments otherwise owed to a Participant any
federal, state, foreign, local or other taxes required to be withheld with respect to the
Participant’s participation in the Plan.

          14.2 Required Consent to and Notification of Section 83(b) Election. No election under Section 83(b) of the Code (to include in gross income in the year of transfer
the amounts specified in Section 83(b) of the Code) or under a similar provision of the laws of a
jurisdiction outside the United States may be made in connection with an Award unless expressly
permitted by the terms of the Award Agreement or by action of the Committee in writing prior to the
making of such election. In any case in which a Participant is so permitted to make such an
election, the Participant shall notify the Company of such election within 10 days of filing notice
of the election with the Internal Revenue Service or other governmental authority, in addition to
any filing and notification required pursuant to regulations issued under Section 83(b) of the Code
or other applicable provisions of any tax law.

     15. Effect of Certain Corporate Changes and Changes in Control.

          15.1 Basic Adjustment Provisions. In the event the Compensation Committee determines that any stock dividend, stock split,
combination of shares, extraordinary dividend of cash or assets, merger, consolidation, spin-off,
recapitalization (other than the conversion of convertible securities according to their terms),
reorganization, liquidation, dissolution or other similar corporate change, or any other increase,
decrease or change in the Common Stock without receipt or payment of consideration by the Company,
in the Compensation Committee’s sole discretion, affects the Common Stock such that an adjustment
to the Awards or the Plan is determined by the Compensation Committee to be appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended to be made available
under the Plan or with respect to an Award, then the Compensation Committee shall, in such manner
as it may deem equitable, adjust any or all of:

          (a) The number and kind of shares of Common Stock (or other securities or property) with
respect to which an Award may be granted under the Plan (including, but not limited to, adjustments
of the limitations in Section 4.1 on the maximum number and kind of

15

 

Shares which may be issued under the Plan and the limitations in Section 4.3 on the maximum number of Shares that may be
covered by Awards granted under the Plan to any single Participant in any calendar year);

          (b) The number and kind of shares of Common Stock (or other securities or property) subject to
outstanding Awards;

          (c) The grant, exercise or other purchase price per Share under any outstanding Awards; and

          (d) The terms and conditions of any outstanding Awards (including, without limitation, any
applicable Performance Criteria specified in an Award Agreement).

Notwithstanding the foregoing, (x) with respect to Incentive Stock Options, any such adjustments
shall be made in accordance with Section 424(h) of the Code, (b) the Committee shall consider the
impact of Section 409A of the Code on any such adjustments, and (z) no such adjustments may
materially change the value of benefits available to a Participant under a previously granted
Award.

          15.2 Change in Control. The Compensation Committee may provide with respect to any transaction that results in a Change
in Control, either at the time an Award is granted or by action taken prior to the occurrence of
the Change in Control, that a Change in Control shall have such effect as is specified by the
Compensation Committee, or no effect, as the Compensation Committee in its sole discretion may
provide. Without limiting the foregoing, the Compensation Committee may provide, either at the
time an Award is granted or by action taken prior to the occurrence of the Change in Control, and
without the consent or approval of any Participant, for one or more of the following actions or
combination of actions with respect to some or all outstanding Awards (which actions may vary among
individual Participants and may be subject to such terms and conditions as the Compensation
Committee deems appropriate):

          (a) Acceleration of the time at which Awards then outstanding vest and (as applicable) may be
exercised in full for a limited period of time on or before a specified date fixed by the
Compensation Committee (which will permit the Participant to participate with the Common Stock
received upon exercise of an Award in the Change in Control transaction), after which specified
date all unexercised Awards and all rights of Participants thereunder shall terminate;

          (b) Acceleration of the time at which Awards then outstanding vest (and, in the case of
Options, Stock Appreciation Rights and other applicable Awards, may be exercised so that such
Options, Stock Appreciation Rights and other applicable Awards may be exercised in full for their
then remaining term);

          (c) The assumption of Awards (or any portion thereof) by the successor or survivor
corporation, or a parent or Subsidiary thereof, or the substitution of awards covering the stock of
the successor or survivor corporation, or a parent or Subsidiary thereof, for then outstanding
Awards that have been issued under the Plan, with appropriate adjustments as to the number and kind
of shares and grant, exercise or other purchase prices;

16

 

          (d) The mandatory surrender to the Company for cancellation of any outstanding Awards and the
purchase of the surrendered Awards for an amount of cash, securities or other property equal to the
excess of the Fair Market Value of the vested shares of Common Stock subject to any such Award
immediately prior to the occurrence of the Change in Control (and such additional portion of the
Award as the Compensation Committee may determine) over the aggregate exercise or other purchase
price (if any) of such shares; and

          (e) The termination of any Award (or any portion thereof) concurrently with the closing or
other consummation of the Change in Control transaction. If the Compensation Committee provides
that an Award shall terminate concurrently with the closing or other consummation of the Change in
Control transaction, each Participant shall have the right up to the closing or other consummation
of the transaction to exercise all or any part of the Participant’s vested Awards.

          15.3 Determination of Adjustments. All determination of the Compensation Committee pursuant to this Section 15 shall be conclusive
and binding on all persons for all purposes of the Plan.

          15.4 No Restriction on Right of Company to Effect Corporate Changes. The Plan shall not affect in any way the right or power of the Company to make or authorize any
adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure
or its business, any merger or consolidation, any issue of stock or of options, warrants or rights
to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are
superior to or affect the Common Stock or the rights thereof or that are convertible into or
exchangeable for Common Stock, the dissolution or liquidation of the Company, any sale or transfer
of all or any part of the assets or business of the Company or any of its Subsidiaries, or any
other corporate act or proceeding, whether of a similar character or otherwise. Except as
specifically provided in this Section 15 and authorized by the Compensation Committee, a
Participant shall have no rights by reason of any such corporate act or proceeding, and no
adjustment by reason thereof shall be made with respect to any outstanding Award or the Plan.

     16. Regulatory Compliance.

          16.1 Conditions to Obligations of the Company. The Company may, to the extent deemed necessary or advisable by the Compensation Committee,
postpone the issuance or delivery of Shares or the payment of other benefits under any Award until:

          (a) The completion of any registration or other qualification of such Shares under any state
or federal securities law or under the rules and regulations of the Securities and Exchange
Commission or any other governmental regulatory body, which the Compensation Committee shall, in
its sole discretion, deem necessary or advisable;

          (b) The admission to listing of, or other required action with respect to, such Shares on any
and all stock exchanges or automated quotation systems upon which the Common Stock or other
securities of the Company are then listed or quoted; and

          (c) The compliance with all other requirements of Applicable Laws, as the Compensation
Committee shall, in its sole discretion, deem necessary or advisable;

17

 

The Compensation Committee also may require any Participant to make such representations, furnish
such information and comply with or be subject to such other conditions as the Compensation
Committee shall, in its sole discretion, deem necessary or advisable to comply with any
requirements of Applicable Laws in connection with the grant of any Award or the issuance or
delivery of Shares or the payment of other benefits under any Award. Without limiting the
generality of the foregoing, if the Shares offered for sale or sold under the Plan are offered or
sold pursuant to an exemption from registration under federal, state or foreign securities laws,
(x) the Company may require the Participant to represent and agree at the time of grant or
exercise, as the case may be, that such Shares are being acquired for investment, and not with a
view to the sale or distribution thereof, and to make such other representations as are deemed
necessary or appropriate by the Company and its counsel, and (y) the Company may restrict the
transfer of such Shares, issue stop-transfer instructions and legend the certificates representing
such Shares, in each case in such manner as it deems advisable to ensure the availability of any
such exemption.

          16.2 Limitation on Company Obligations. The inability of the Company (after reasonable efforts) to obtain authority from any regulatory
body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the
lawful issuance or sale of any Awards or Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Awards or Shares as to which such
requisite authority shall not have been obtained. Nothing contained herein shall be construed to
impose on the Company any obligation to register for offering or resale under the Securities Act,
or to register or qualify under any other state, federal or foreign securities laws, any Shares,
securities or interests in a security paid or issued under, or created by, the Plan, or to continue
in effect any such registrations or qualifications if made, and the Company shall have no liability
for any inability or failure to do so.

          16.3 Provisions Applicable to a Change in Control. Anything in this Section 16 to the contrary notwithstanding, in connection with a Change in
Control, the Company shall not take or cause to be taken any action, and shall not undertake or
permit to arise any legal or contractual obligation, that results or would result in any
postponement of the issuance or delivery of Shares or the payment of benefits under any Award or
the imposition of any other conditions on such issuance, delivery or payment, to the extent that
such postponement or other condition would represent a greater burden on a Participant than existed
on the 90th day preceding the effective date of the Change in Control.

          16.4 Exchange Act. Notwithstanding anything contained in the Plan or any Award Agreement to the contrary,
if the consummation of any transaction under the Plan would result in the possible imposition of
liability on a Participant pursuant to Section 16(b) of the Exchange Act, the Compensation
Committee shall have the right, in its sole discretion, but shall not be obligated, to defer such
transaction to the extent necessary to avoid such liability.

     17. Amendment or Termination of the Plan.

          The Board of Directors may at any time and from time to time amend, suspend or terminate the
Plan in whole or in part; provided that no such amendment may, without the approval of the
stockholders of the Company, increase the number of shares of Common Stock

18

 

that may be issued under the Plan (except for adjustments pursuant to Section 15) or effectuate a change for which
stockholder approval is required: (a) in order for the Plan to continue to qualify under Section
422 of the Code; (b) under the corporate governance standards of any national securities exchange
or automated quotation system applicable to the Company; or (c) for Awards to be eligible for the
performance-based compensation exception under Section 162(m). In addition, no termination or
amendment of the Plan shall materially alter or adversely affect the rights of any Participant in
any outstanding Awards, without the consent of the Participant to whom the Awards have been
granted.

     18. Term of the Plan.

          The Plan shall continue until terminated by the Board of Directors pursuant to Section 17 or
as otherwise set forth in the Plan, and no further Awards shall be made hereunder after the date of
such termination. Unless earlier terminated, the Plan shall terminate 10 years after its initial
approval by the Board of Directors (provided that Awards granted before termination shall continue
in accordance with their terms).

     19. No Right to Awards or Continued Employment.

          No person shall have any claim or right to receive grants of Awards under the Plan, and
neither the Plan nor any action taken or omitted to be taken hereunder shall create or confer on
any Participant the right to continued employment with the Company or its Subsidiaries or interfere
with or to limit in any way the right of the Company or its Subsidiaries
to terminate the employment of any Participant at any time or for any reason. The loss of any
existing or potential profit in Awards shall not constitute an element of damages in the event of
the termination of the employment of any Participant for any reason, even if the termination is in
violation of an obligation of the Company or its Subsidiaries to the Participant. No Participant
shall have any rights as a stockholder with respect to any Shares covered by or relating to any
Award until the date of the issuance of a stock certificate with respect to such Shares.

     20. Effect of Plan Upon Other Awards and Compensation Plans.

          Nothing in the Plan shall be construed to limit the right of the Company or any of its
Subsidiaries (a) to establish any other forms of incentives or compensation for Employees, or (b)
to grant or assume options, restricted stock or other equity-based awards otherwise than under the
Plan in connection with any proper corporate purpose, including, but not by way of limitation, the
grant or assumption of options, restricted stock or other awards in connection with the acquisition
of the business, securities or assets of any corporation, firm or business. The adoption of the
Plan shall not affect any other compensation or incentive plans in effect for the Company or any of
its Subsidiaries, and no payment under the Plan shall be taken into account in determining any
benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of
the Company except as otherwise specifically provided in such other plan.

     21. General Provisions.

          21.1 Other Documents. All documents prepared, executed or delivered in connection
with the Plan shall be, in substance and form, as established and modified by the Compensation
Committee or by persons under its direction and supervision; provided, however,

19

 

that all such documents shall be subject in every respect to the provisions of the Plan, and in the event of any
conflict between the terms of any such document and the Plan, the provisions of the Plan shall
prevail.

          21.2 No Fractional Shares. No fractional Shares shall be issued or delivered pursuant
to the Plan or any Award. The Compensation Committee shall determine whether cash or other
property shall be issued or paid in lieu of fractional shares of Common Stock or whether such
fractional shares of Common Stock and any rights thereto shall be forfeited or otherwise eliminated
(including by rounding to the nearest whole Share).

          21.3 Payments in the Event of Forfeitures. Unless otherwise determined by the
Compensation Committee or otherwise specified in the applicable Award Agreement, in the event of
the forfeiture of an Award with respect to which a Participant paid cash consideration, the
Participant shall be repaid the amount of such cash consideration within 10 days of the date of
forfeiture or as soon thereafter as practicable.

          21.4 Limitation on Repricing. The Compensation Committee shall not, without the
approval of the stockholders of the Company, amend or replace previously granted Options or Stock
Appreciation Rights in a transaction that constitutes a “repricing,” as such term is used
in Section 303A.08 of the Listed Company Manual of the New York Stock Exchange or the rules
and regulations of the Securities and Exchange Commission.

          21.5 Misconduct of a Participant. Notwithstanding any other provision of the Plan or
an Award Agreement, if a Participant commits fraud or dishonesty toward the Company or wrongfully
uses or discloses any trade secret, confidential data or other information proprietary to the
Company, or intentionally takes any other action materially inimical to the best interests of the
Company, as determined by the Compensation Committee, in its sole and absolute discretion, such
Participant shall forfeit all rights and benefits under the Plan and any outstanding Awards.

          21.6 Restrictive Legends. The certificates for Shares delivered under the Plan shall
include such legends, and shall be subject to such stop-transfer instructions, as the Compensation
Committee deems appropriate to reflect any restrictions on the Shares.

          21.7 Successors in Interest. The provisions of the Plan, the terms and conditions of any Award and the actions of the
Compensation Committee shall be binding upon the successors and assigns of the Company and
permitted successors and assigns, heirs, executors, administrators and other legal representatives
of Participants.

          21.8 Severability. If any provision of the Plan or any Award is determined to be invalid, illegal or
unenforceable in any jurisdiction, or as to any person, or would disqualify the Plan or any Award
under any law deemed applicable by the Compensation Committee, such provision shall be construed or
deemed amended to conform to Applicable Laws, or, if it cannot be so construed or deemed amended
without, in the Compensation Committee’s determination, materially altering the intent of the Plan
or the Award, such provision shall be stricken as to such jurisdiction, person or Award, and the
remainder of the Plan and any such Award shall remain in full force and effect.

20

 

          21.9 Headings. The headings of sections and subsections herein are included solely for convenience of
reference and shall not affect the meaning of any of the provisions of the Plan.

          21.10 Governing Law. To the extent not preempted by federal law, the Plan and all rights hereunder shall be governed
by and construed in accordance with the laws of the State of Delaware, without reference to rules
relating to conflicts of law.

          21.11 Compliance With Section 162(m). If any provision of the Plan or any Award
Agreement relating to an Award that is designated as intended to comply with Section 162(m) does
not comply or is inconsistent with the requirements of Section 162(m), such
provision shall be construed or deemed amended to the extent necessary to conform to such
requirements.

          21.12 Compliance With Section 409A. Awards under the Plan are intended either to (a) qualify as compensatory arrangements that do
not constitute “deferred compensation” subject to Section 409A of the Code, or (b) satisfy the
requirements of Section 409A of the Code so that Participants will not be liable for the payment of
interest or additional tax thereunder, and the Plan and all Awards shall be construed accordingly.
Any provision of the Plan or an Award Agreement that would cause the grant of an Award, or the
payment, settlement or deferral thereof, to fail to satisfy Section 409A of the Code shall be
amended to comply with Section 409A of the Code on a timely basis, which may be made on a
retroactive basis, in accordance with regulations and other guidance issued under Section 409A of
the Code.

          21.13 Administration of the Plan in Foreign Countries. The Compensation Committee may take any action consistent with the terms of the Plan,
either before or after an Award has been granted, which the Compensation Committee deems necessary
or advisable in order for the administration of the Plan and the grant of Awards thereunder to
comply with the Applicable Laws of any foreign country, including but not limited to, modifying or
amending the terms and conditions governing any Awards, modifying exercise procedures and other
terms and procedures and establishing local country plans as sub-plans to the Plan.

          21.14 Effective Date. The Plan shall become effective upon adoption by the Board of Directors, subject to approval by
the stockholders of the Company. The Plan will be submitted for the approval of the Company’s
stockholders within 12 months of the date of the Board of Director’s initial adoption of the Plan.
No Award may be exercised to any extent unless and until the Plan is so approved by the
stockholders, and if such approval has not been obtained by the end of said 12-month period, the
Plan and all Awards theretofore granted shall thereupon be canceled and become null and void.

[Signature page follows]

21

 

     IN
WITNESS WHEREOF, this document has been executed as of the 22nd day of November, 2006.

	 	 	 	 	 
	 	NEWPARK RESOURCES, INC.

 	 
	 	By:  	/s/ Paul L. Howes
 	 
	 	 	Paul L. Howes,  	 
	 	 	President and Chief Executive Officer 	 

22

 

	 	 	 	 	 

Exhibit A

DEFINITIONS

     The following terms, when used in the Plan, shall have the meanings, and shall be subject to
the provisions, set forth below:

     “Award” means an Option, Restricted Stock award, Restricted Stock Unit award, Stock
Appreciation Right or Other Stock-Based Award granted to a Participant pursuant to the Plan.

     “Award Agreement” means any written agreement, contract or other instrument or
document evidencing an Award.

     “Applicable Laws” means the requirements relating to the administration of stock
option and restricted stock plans under U.S. state corporate laws, U.S. federal and state
securities laws, the Code, any stock exchange or quotation system on which the Common Stock is
listed or quoted and the applicable laws of any other country or jurisdiction where Awards are
granted under the Plan.

     “Board of Directors” means the Board of Directors of the Company.

     “Cashless Exercise” means the exercise of an Option through (a) the delivery of
irrevocable instructions to a broker (i) to make a sale of a number of Shares issuable upon the
exercise of the Option that results in proceeds in the amount required to pay the aggregate Option
Price for all the shares as to which the Option is being exercised (and any required withholding
tax, if authorized by the Compensation Committee) and (ii) to deliver such proceeds to the Company
in satisfaction of such aggregate Option Price (and withholding tax obligation, if applicable), or
(b) any other surrender to the Company of Shares issuable upon the exercise of the Option or vested
Options in satisfaction of such aggregate Option Price (and withholding tax obligation, if
applicable).

     “Cause” means, with respect to any Participant, (a) “cause” as defined in an
employment or consulting agreement applicable to the Participant, or (b) in the case of a
Participant who does not have an employment or consulting agreement that defines “cause”: (i) any
act or omission that constitutes a material breach by the Participant of any of his or her
obligations under any agreement with the Company or any of its Subsidiaries; (ii) the willful and
continued failure or refusal of the Participant substantially to perform the duties required of him
or her as an Employee, or performance significantly below the level required or expected of the
Participant, as determined by the Compensation Committee; (iii) the Participant’s willful
misconduct, gross negligence or breach of fiduciary duty that, in each case or in the aggregate,
results in material harm to the Company or any of its Subsidiaries; (iv) any willful violation by
the Participant of any federal, state or foreign law or regulation applicable to the business of
the Company or any of its Subsidiaries, or the Participant’s commission of any felony or other
crime involving moral turpitude, or the Participant’s commission of an act of fraud, embezzlement
or misappropriation; or (iv) any other misconduct by the Participant that is materially injurious
to the financial condition or business reputation of, or is otherwise materially injurious to, the
Company or any of its Subsidiaries. The Compensation Committee shall determine whether there has
been a termination of employment for Cause, and each Participant shall agree, by acceptance of the
grant of an Award and the execution of an Award Agreement, that the Compensation Committee’s
determination is conclusive and binding on all persons for all purposes of the Plan.

 

 

     “Change in Control” means the occurrence of any one of the following:

          (a) Any election of directors of the Company takes place (whether by the directors then in
office or by the stockholders at a meeting or by written consent) and a majority of the directors
in office following such election are individuals who were not nominated by a vote of two-thirds of
the members of the Board of Directors immediately preceding such election;

          (b) One or more occurrences or events as a result of which any “person” (as such term is used
in Sections 13(d) and 14(d)(2) of the Exchange Act) becomes the “beneficial owner” (as such term is
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 30% or more of the
combined voting power of the Company’s then outstanding securities;

          (c) A merger or consolidation of the Company with, or an acquisition of the Company or all or
substantially all of its assets by, any other entity, other than a merger, consolidation or
acquisition in which the individuals who were members of the Board of Directors of the Company
immediately prior to such transaction continue to constitute a majority of the Board of Directors
of the surviving corporation (or, in the case of an acquisition involving a holding company,
constitute a majority of the Board of Directors of the holding company) for a period of not less
than 12 months following the closing of such transaction; or

          (d) The stockholders of the Company approve a plan of complete liquidation or dissolution of
the Company.

     “Code” means the Internal Revenue Code of 1986, as amended, including the rules and
regulations promulgated thereunder.

     “Common Stock” means shares of Common Stock, par value $0.01 per share, of the Company
and any other equity securities of the Company that may be substituted or resubstituted for such
Common Stock pursuant to Section 15.

     “Company” means Newpark Resources, Inc., a Delaware corporation, and any successor.

     “Compensation Committee” means the Compensation Committee of the Board of Directors.

     “Date of Grant” means the date of grant of an Award as set forth in the applicable
Award Agreement.

     “Disqualifying Disposition” has the meaning set forth in Section 7.8.3.

     “Disability” means, with respect to any Participant who has an employment or
consulting agreement that defines such term or a similar term, “disability” as defined in such
agreement or, in the case of a Participant who does not have an employment or consulting agreement
that defines such term or a similar term, the inability of the Participant to perform substantially
all his duties as an Employee by reason of illness or incapacity for a period of more than six
months, or six months in the aggregate during any 12-month period, established by medical evidence
reasonably satisfactory to the Compensation Committee.

     “Employee” means any person who is employed by the Company or one of its Subsidiaries,
provided, however, that the term “Employee” does not include a non-employee

 

 

Director or an individual performing services for the Company or a Subsidiary who is treated
for tax purposes as an independent contractor at the time of performance of the services, whether
such person is so employed at the time this Plan is adopted or becomes so employed subsequent to
the adoption of this Plan. For purposes of awards of Incentive Stock Options, “Employee” means any
person, including an officer, who is so employed by the Company or any “parent corporation” or
“subsidiary corporation” of the Company as defined in Sections 424(e) and 424(f) of the Code,
respectively. An Employee shall not cease to be an Employee in the case of (a) any leave of
absence approved by the Company, or (b) transfers between locations of the Company or between the
Company, any of its Subsidiaries or any successor.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder.

     “Fair Market Value” means, as of any given date, the value of a share of Common Stock
determined as follows:

          (a) If the Common Stock is listed on an established stock exchange or a national market
system, the Fair Market Value of a share of Common Stock shall be the closing sales price for such
stock (or the closing bid, if no sales were reported), as quoted on the principal exchange or
system on which the Common Stock is then traded and as reported in The Wall Street Journal or such
other source as the Compensation Committee deems reliable, on such date or, if such date is not a
trading day, on the trading day immediately preceding such date;

          (b) If the Common Stock is regularly quoted by a recognized securities dealer but selling
prices are not reported, the Fair Market Value of a share of Common Stock shall be the mean between
the high bid and low asked prices for the Common Stock, as reported in The Wall Street Journal or
such other source as the Compensation Committee deems reliable, on such date or, if such date is
not a trading day, on the trading day immediately preceding such date; or

          (c) In all other cases, the “fair market value” as determined by the Compensation Committee in
good faith and using such financial sources as it deems relevant and reliable (but in any event not
less than fair market value within the meaning of Section 409A of the Code).

     “Incentive Stock Option” means an Option which qualifies as an “incentive stock
option” under Section 422 of the Code and is designated as an Incentive Stock Option by the
Compensation Committee. For avoidance of doubt, no Option awarded under the Plan will be an
Incentive Stock Option unless the Compensation Committee expressly provides for Incentive Stock
Option treatment in the applicable Award Agreement.

     “Non-Qualified Stock Option” means an Option which is not an “incentive stock option”
under Section 422 of the Code and includes any Option which is designated as a Non-Qualified Stock
Option by the Compensation Committee.

     “Option” means a right to purchase Shares upon payment of the Option Price.

     “Option Price” means the purchase price per Share deliverable upon the exercise of an
Option in order for the Option (or applicable portion thereof) to be exchanged for Shares.

     “Other Stock-Based Awards” has the meaning set forth in Section 11.

     “Participant” means any Employee who has been granted an Award.

 

 

     “Performance Criteria” has the meaning set forth in Section 12.1 of the Plan.

     “Performance Period” has the meaning set forth in Section 12.4 of the Plan.

     “Plan” means the Newpark Resources, Inc. 2006 Equity Incentive Plan.

     “Restricted Stock” means Shares awarded to a Participant under Section 8, the rights
of ownership of which are subject to restrictions prescribed by the Compensation Committee.

     “Restricted Stock Unit” means a right granted to a Participant under Section 9 to
receive Shares upon the satisfaction of Performance Criteria or other criteria specified by the
Compensation Committee, such as continuous service, at the end of a specified Restriction Period.

     “Restriction Period” means the period or periods during which any forfeiture or
vesting restrictions, restrictions on transferability or other restrictions shall apply to any
Award, as determined by the Compensation Committee in its discretion, consistent with the
provisions of the Plan.

     “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule
16b-3, as in effect when discretion is being exercised with respect to the Plan.

     “SAR Settlement Value” has the meaning set forth in Section 10.2.

     “Section 16(b) Insider” means an officer or director of the Company or any other
person whose transactions in the Company’s Common Stock are subject to Section 16 of the Exchange
Act.

     “Section 162(m)” means Section 162(m) of the Code and the regulations promulgated
thereunder.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

     “Shares” means shares of the Company’s Common Stock reserved for issuance under the
Plan, as adjusted pursuant to Sections 15, and any successor security.

     “Stock Appreciation Right” means a right granted to a Participant under Section 10
that entitles the Participant to receive a payment in Shares, cash or a combination thereof
measured by the increase in the Fair Market Value of a Share over the exercise price of the Stock
Appreciation Right, as established by the Compensation Committee on the Date of Grant.

     “Subsidiary” means any “subsidiary” within the meaning of Rule 405 under the
Securities Act; provided, however, for purposes of Awards of Incentive Stock Options, “Subsidiary”
means any entity that is a subsidiary of the Company within the meaning of Section 424(f) of the
Code.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]