Document:

Form of Performance Cash Award Letter

 

 

  

 Exhibit 10.3 

Form of Performance Cash Award Letter 
 June xx, 2011 
 [Name] 
 [Location] 
 Dear [Name]: 
 Bristow Group Inc. (the “Company”) hereby awards to you effective as of the date hereof (“Award Date”) a Performance Cash Award which represents the opportunity for you to receive up
to $            , which is 200% of your target award of $            ,upon the Company’s achievement of a
performance goal over a specified performance period. This award is made in accordance with the Bristow Group Inc. 2007 Long Term Incentive Plan (the “Plan”). 
 Your Performance Cash Award is more fully described in the attached Appendix A, Terms and Conditions of Employee Performance Cash Award (which Appendix A, together with this letter, is the “Award
Letter”). Any capitalized term used and not defined in the Award Letter has the meaning set forth in the Plan. In the event there is an inconsistency between the terms of the Plan and the Award Letter, the terms of the Plan control. 

The amount of cash you may earn will be determined based upon the Company’s achievement of a performance goal during the three year performance
period described in Appendix A. 
 Your Performance Cash Award is subject to the terms and conditions set forth in the enclosed Plan, the
Prospectus for the Plan, this Award Letter and any rules and regulations adopted by the Compensation Committee of the Company’s Board of Directors in accordance with the terms of the Plan. Note that in most circumstances, the amount to be paid
to you pursuant to your Performance Cash Award will be taxable compensation income to you when paid. You should closely review Appendix A and the Plan Prospectus for important details about the tax treatment of your Performance Cash Award.

 This Award Letter, the Plan, and any other attachments should be retained in your files for future reference. 

Congratulations on your award. 
  

	
	 Very truly yours,

	
	

	
	 Hilary S. Ware

	 Senior Vice President Administration

	
	 Enclosures

 Bristow Group Inc. 
 2000 West Sam Houston Parkway South, Suite 1700,
Houston, Texas 77042, United States 
 t (713) 267 7600 f (713) 267 7620 www.bristowgroup.com 

 

 

  

 Appendix A 

Terms and Conditions of 
 Employee Performance Cash Award 
 June     ,
2011 
 The Performance Cash Award by Bristow Group Inc. (the “Company”) made to you effective as of the Award Date provides for
the opportunity for you to receive, if certain conditions are met, a cash payment (“Performance Cash”), subject to the terms and conditions set forth in the Bristow Group Inc. 2007 Long Term Incentive Plan (the “Plan”), the
enclosed Prospectus for the Plan, any rules and regulations adopted by the Compensation Committee of the Company’s Board of Directors (the “Committee”), and this Award Letter. Any capitalized term used and not defined in the Award
Letter has the meaning set forth in the Plan. In the event there is an inconsistency between the terms of the Plan and the Award Letter, the terms of the Plan control. 
  

	1.	Determination of Earned Cash 

 (a) Earned Cash. The exact amount of the Performance Cash that will actually be earned by and awarded to you (the “Earned Cash”) will be based upon the level of achievement by the Company
of the performance standard described below over the three-year period commencing April 1, 2011 and ending March 31, 2014 (the “Performance Cycle”). The determination by the Committee with respect to the achievement of such
performance standards will be made in the first quarter of fiscal year 2015 after all necessary Company and peer information is available. The specific date on which such determination is formally made and approved by the Committee is referred to as
the “Determination Date.” After the Determination Date, the Company will notify you of the amount of Earned Cash, if any, to be actually awarded to you. The payment of the Earned Cash will be made no later than 2 1/2 months after the end of the Performance Cycle. 

The calculation of Earned Cash shall be based on the Company’s Total Shareholder Return ranking compared to a defined peer group at
the end of the Performance Cycle as determined by the Committee in its sole discretion. “Total Shareholder Return” is defined for a given company as the change in share price plus cumulative dividends paid, assuming dividend reinvestment
during the Performance Cycle, over share price at the beginning of the Performance Cycle of the applicable company. Earned Cash will be calculated by multiplying the target Performance Cash by the appropriate percentage set

 

 

  

 
forth below for the percentile rank achieved by the Company. For Total Shareholder Return performance between the percentile ranks noted below, linear interpolation will be used to calculate the
exact amount of Earned Cash: 
  

							
	 Percentile

Rank
	  	Percentage	 	 	Level
			
	75	  	 	200.00	% 	 	Maximum
	67	  	 	166.70	% 	 	
	58	  	 	133.30	% 	 	
	50	  	 	100.00	% 	 	 Target

	42	  	 	83.30	% 	 	
	33	  	 	66.70	% 	 	
	25	  	 	50.00	% 	 	Entry
	Below 25th	  	 	ZERO	  	 	

 The Company’s defined “Peer Group” shall consist of the Company and the other
companies included in the Simmons & Company Offshore Transportation Services Group index. For calculation of Total Shareholder Return, the peer group will include those of the companies still in existence and included in the Simmons and
Company index on the Determination Date adjusted as determined by the Committee to account for mergers and acquisitions involving members of the peer group. 
 Committee Determinations. In accordance with the provisions of the Plan, the Committee shall have the exclusive authority to make all determinations hereunder, including but not limited to the
ranking of the Company and its Peer Group. Without limiting the foregoing, the Committee shall have absolute discretion to determine the amount of Earned Cash to which you are entitled, if any, including without limitation such adjustments as may be
necessary in the opinion of the Committee to account for changes since the date of the Award Letter. Notwithstanding the foregoing, the Committee shall be precluded from increasing the amount that would otherwise be obtainable upon the achievement
of the performance goals described in Section 1(a) above to the extent prescribed by Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), and the applicable regulations, rulings, and notices thereunder.
The Committee’s determination shall be final, conclusive and binding upon you. 
  

	2.	Termination of Employment 

 (a) Termination of Employment in General. Except as provided in this Section 2 and Section 3 of this Appendix, if your employment terminates prior to the Determination Date, your
Performance Cash Award shall be immediately forfeited, and you will not be entitled to receive any Earned Cash. 
 (b) Termination of Employment due to Death or Disability. If your employment terminates by reason of your death or Disability prior to the Determination Date, you will be entitled to receive Earned
Cash in an amount equal to the Target Level of your Performance Cash Award, and your Earned Cash will be paid to you no later than 2
 1/2 months after the end of the taxable year in
which your employment terminates. For 

 

 

  

 
purposes of this Appendix, Disability shall have the meaning given that term by the group disability insurance, if any, maintained by the Company for its employees or otherwise shall mean your
complete inability, with or without a reasonable accommodation, to perform your duties with the Company on a full-time basis as a result of physical or mental illness or personal injury you have incurred for more than 12 weeks in any 52 week period,
whether consecutive or not, as determined by an independent physician selected with your approval and the approval of the Company. 
 (c) Termination of Employment due to Retirement. If your employment terminates prior to the Determination Date by reason of your retirement under a retirement program of the Company or one of its
Subsidiaries approved by the Committee after you have both attained age 62 and completed five continuous years of service or your combined age and length of service is 80 or above (as determined by the Committee), your Performance Cash Award will no
longer be subject to forfeiture for termination of employment prior to the Determination Date, and you may still become entitled to Earned Cash in accordance with Section 1 above if, and only to the extent that, the Company achieves the
performance standard described in Section 1 above; provided, however, that the amount of Earned Cash otherwise payable to you under Section 1 shall be prorated by the ratio of the number of your months of continuous service from the
beginning of the Performance Cycle to the date of retirement divided by thirty six. The payment of Earned Cash to U.S. taxpayers will be made no later than 2
 1/2 months after the end of the Performance Cycle.
Payment of Earned Cash to non US taxpayers will be made in the next regularly scheduled paycheck after the Determination Date. 
 (d) Committee Determinations. The Committee shall have absolute discretion to determine the date and circumstances of the termination of your employment, and its determination shall be final,
conclusive and binding upon you. 
  

	3.	Change in Control 

 If
you are employed by the Company on the date of a Change in Control of the Company, you will be entitled to receive Earned Cash in an amount equal to the Target Level of your Performance Cash Award, and your Earned Cash will be paid to you no later
than 2 1/2 months after the end of the taxable year
in which the Change in Control occurs. A Change in Control of the Company shall be deemed to have occurred as of the first day any one or more of the following conditions shall have been satisfied: 

(a) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of Shares representing 35% or more of the combined voting power of the then outstanding voting securities of the
Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this clause (a), the following acquisitions shall not constitute a Change in Control:
(i) any acquisition directly from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation or other entity
controlled by the Company, or (iv) any acquisition by any corporation or other entity pursuant to a transaction which complies with subclauses (i), (ii) and (iii) of clause (c) below; or 

 

 

  

 (b) Individuals who, as of the Effective Date of the Plan, are members
of the Board of Directors of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors of the Company; provided, however, that for purposes of this clause (b), any individual
becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board, shall be considered
as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or
removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors of the Company; or 

(c) Consummation of a reorganization, merger, conversion or consolidation or sale or other disposition of all or
substantially all of the assets of the Company (a “Business Combination”), in each case, unless, following such Business Combination, (i) all or substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then outstanding combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors of the corporation or other entity resulting from such Business Combination (including, without limitation, a corporation or other entity which as a result of such transaction owns the Company
or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding Company Voting
Securities, (ii) no Person (excluding any corporation or other entity resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation or other entity resulting from such Business
Combination) beneficially owns, directly or indirectly, 35% or more of the combined voting power of the then outstanding voting securities of the corporation or other entity resulting from such Business Combination except to the extent that such
ownership existed prior to the Business Combination and (iii) at least a majority of the members of the board of directors of the corporation or other entity resulting from such Business Combination were members of the Incumbent Board at the
time of the execution of the initial agreement, or of the action of the Board of Directors of the Company, providing for such Business Combination; or 
 (d) Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company other than in connection with the transfer of all or substantially all of the assets of the Company
to an affiliate or a Subsidiary of the Company. 
  

	4.	Tax Consequences and Income Tax Withholding 

 (a) You should review the Plan Prospectus for a general summary of the U.S. federal income tax consequences of your receipt of this Performance Cash Award based on currently applicable provisions
of the Code and related regulations. The summary does not discuss state and local tax laws or the laws of any other jurisdiction, which may differ from U.S. federal tax law. Neither the Company nor the Committee guarantees the tax consequences of
your Performance Cash Award. You are advised to consult your own tax advisor regarding the application of the tax laws to your particular situation. 

 

 

  

 (b) The Performance Cash Award under this Award Letter is subject
to the satisfaction of any applicable U.S. federal, state or local withholding tax liability arising in connection with the award. The Company will withhold the necessary amount from your Earned Cash upon making payment to you as required by law.
You may not elect for such withholding to be greater than the minimum statutory withholding tax liability arising from the Performance Cash Award. 
 (c) In addition, you must make arrangements satisfactory to the Committee to satisfy any applicable withholding tax liability imposed under the laws of any other jurisdiction arising from the
Performance Cash Award hereunder. 
  

	5.	Effect on Other Benefits 

 Income
recognized by you as a result of this Performance Cash Award, and the entitlement to and payment of your Earned Cash, will not be included in the formula for calculating benefits under any of the Company’s retirement and disability plans or any
other benefit plans. 
  

	6.	Compliance With Laws 

 This Award Letter and your
Performance Cash Award shall be subject to all applicable federal and state laws. The Plan and this Award Letter shall be interpreted, construed and constructed in accordance with the laws of the State of Delaware without regard to its conflicts of
law provisions, except as may be superseded by applicable laws of the United States. 
  

	7.	Miscellaneous 

(a) Not an Agreement for Continued Employment or Services. This Award Letter and your Performance Cash Award will
not, and no provision of this Award Letter will be construed or interpreted to, create any right to be employed by or to provide services to or to continue your employment with or to continue providing services to the Company or the Company’s
affiliates, or to the Parent or Subsidiaries or their affiliates. 
 (b) Community Property. Each spouse
individually is bound by, and such spouse’s interest, if any, in this Performance Cash Award is subject to the terms of this Award Letter. Nothing in this Award Letter shall create a community property interest where none otherwise exists.

 (c) Amendment for Code Section 409A. This Performance Cash Award is intended to be exempt from
Code Section 409A. If the Committee determines that this Performance Cash Award may be subject to Code Section 409A, the Committee may, in its sole discretion, amend the terms and conditions of this Award Letter to the extent necessary to
comply with Code Section 409A or otherwise to exempt the Performance Cash Award from Code Section 409A. Notwithstanding the foregoing, the Company shall not be required to assume any economic burden in connection therewith. 

 

 

  

 If you have any questions regarding your Performance Cash Award or would like to obtain additional
information about the Plan or the Committee, please contact the Company’s General Counsel, Bristow Group Inc., 2000 W. Sam Houston Parkway South, Suite 1700, Houston, Texas 77042 (telephone (713) 267 - 7600). Your Award Letter, the
Plan and all attachments should be retained in your files for future reference.Bristow Group Inc. Fiscal Year 2012 Annual Incentive Compensation Plan

 Exhibit 10.4 
 BRISTOW GROUP INC. 
 FY 2012 ANNUAL
INCENTIVE COMPENSATION PLAN 
 Plan Provisions 

June 8, 2011 

PURPOSE 
 To provide certain designated
officers and employees the opportunity to share in the performance of the company by achieving specific financial and safety goals and key individual objectives. 
 Participants will be required to uphold and certify their performance of the Company’s legal and ethical standards as described in the Code of Business Integrity and the policies that support the
Code; and shall use the Company’s statement of Core Values and the Leadership Charter as guidelines for the conduct of business and working relationships. 
 ELIGIBILITY 
  

	 	•	 	 Certain designated officers, employees of the Company, and participating affiliates may be eligible to participate in the plan. Participants are
recommended to and approved by the CEO and in the case of Executive Officers approved by the Compensation Committee. In order to be eligible an employee must be actively employed in a bonus eligible position for a minimum of three months.

  

	 	•	 	 Employees who are designated for participation in the plan and employed after the commencement of the Plan year will be eligible to participate in the
plan on a pro-rata basis for such plan year. 

 KEY PERFORMANCE INDICATORS (KPI’S) AND WEIGHTS 

 

	 	•	 	 KPI’s are selected and weighted to give emphasis to performance for which participants have the most direct control. KPI’s may vary among
participants and may change from year to year. 

  

	 	•	 	 The Compensation Committee has approved the KPI’s and weights. 

 

	 	•	 	 All participants will be assigned safety measures at the consolidated corporate level. Achievement of the safety measure is subject to the fatality
qualifier described below. 

  

	 	•	 	 For participants at the Business Unit level the Financial component will be based 75% on improvement in corporate Bristow Value Added (BVA) and 25% on
improvement in the BVA of the business unit. For Corporate participants the Financial component will be based 100% on improvement in corporate BVA. 

  
  

1 

	 	•	 	 Each participant will have a discretionary “individual performance” component, and will be evaluated based on specific individual objectives
(scorecard) and an overall performance evaluation of their contribution to the organization as well as the performance of the Country, Business Unit and/or Division in which they are employed. 

 

	 	•	 	 The performance measures and their weightings for Fiscal Year 2012 will be BVA (50%), BSI (10%), CAA (15%) and Individual Performance (25%).

  

	 	•	 	 Each participant will receive an individual Incentive Award Determination Worksheet that contains his or her specific incentive award opportunity,
KPI’s, and performance goals. 

  

	 	•	 	 Attachment I summarizes the KPI’s for the FY12 Incentive Plan. 

 PARTICIPATION LEVELS 
 Executive Officers will be assigned a specific target participation
level set as a percentage of actual annual base salary. Other participants will be assigned a specific target level set as a percentage of actual annual base salary established by management based on salary grade. The target levels for fiscal year
are as follows: 
  

					
	Executive Officers	  
	 Position
	  	 Target
	 
	 CEO
	  	 	100	% 
	 Sr. VP
	  	 	55	% 
	 VP
	  	 	40	% 
	
	Other Management	  
	 Salary
 Grade
	  	 Target
	 
	 10
	  	 	45	% 
	 9
	  	 	40	% 
	 8
	  	 	35	% 
	 7
	  	 	30	% 
	 6
	  	 	25	% 
	 5
	  	 	20	% 
	 3-4
	  	 	15	% 
	 1-2
	  	 	10	% 

 KPI DEFINITIONS 

The following definitions will determine the calculation of each KPI. 
 Bristow Safety Index (BSI) – Bristow Group consolidated total recordable incidents for the fiscal year, meaning the total number of recordable safety incidents per 200,000 man hours with
incidents weighted as follows: Lost Work Cases – 1, Recordable Work Cases – 0.6 and Medical Treatment Case – 0.4. 

  
  

2 

 Safety CAA – Bristow Group Consolidated Air Accidents for the fiscal year meaning the number of
Air Accidents as defined by the International Civil Aviation Organizations (ICAO) Annex 13 in compliance with the NTSB and CAA definitions. 

Fatality – If during the fiscal year, there is a fatality in administrative, ground or air operations to an employee, passenger, bystander or
anyone involved in operations at hand, the award for the safety performance component will be zero for all participants in the Country where the fatality took place, then in a direct line up through the organization to include participants in the
related Business Unit headquarters, Division headquarters and Corporate headquarters. 
 Bristow Value Added (BVA) – Bristow Value
Added (“BVA”) is a financial performance measure customized for Bristow Group to measure Gross Cash Flow (after tax operating cash flow) less a charge for the capital employed. 

 

	 	•	 	 Gross Cash Flow is Total Revenue, Less Total Operating Expense (excluding depreciation and amortization) Plus Rent Expense for the period less
Taxes, plus (minus) an adjustment for the proportional consolidation of any large strategic equity investment’s gross cash flow (e.g. Lider). 

  

	 	•	 	 Gross Operating Assets is a measure of the gross tangible assets deployed into the business to generate Bristow’s Gross Cash Flow. Gross
Operating Assets include Net Working Capital (Excluding Cash), Gross Property, Plant and Equipment (including the fleet), Other Non-Current Tangible Assets, Capitalized Operating Leases and an adjustment for the gain or losses on the sale of
aircraft. Gross Operating Assets will also be adjusted for the proportional consolidation of any large strategic equity investment’s gross operating assets. 

 

	 	•	 	 The Annual Required Return is fixed at 10.5% (2.625% per quarter). The Capital Charge is calculated quarterly based on the ending balance and
the full year’s Capital Charge is the sum of the four quarters. The Capital Charge is defined as Gross Operating Assets x the Required Return. 

 Individual Performance – Individual performance may relate specifically to the individual and/or pre-established Country, Business Unit or Departmental objective goals approved by the
applicable member of the Senior Management Team. Each individual participant should be evaluated on individual objectives that have been defined at the beginning of the plan year and an overall performance evaluation of the individual’s
contributions during the year. The total amount to all participants for the discretionary component is set as a multiple of the “expected” level ranging from 0 to 200% recommended by Senior Management and approved by the Compensation
Committee. 
 PERFORMANCE GOALS 
  

	 	•	 	 For each safety performance measure, goals for the Minimum, Expected, and Maximum levels of performance are set forth in Attachment I.

  
  

3 

	 	•	 	 The BVA Expected Level for fiscal year 2012 is the actual BVA achieved in fiscal year 2011. Achieving this level of performance at both Corporate and
the Business Units would imply a BVA Multiple of 1.0 times bonus target. 

  

	 	•	 	 If BVA improvement is above or below zero, the BVA Multiplier will be above or below 1.0 times bonus target. Each business will be assigned a Bonus
Sensitivity Factor each year set at 1% of gross operating assets at the prior year end (BUs will be 3% of gross operating assets at the prior year end). This determines the slope of the curve. If BVA declines by the Bonus Sensitivity Factor, the BVA
Multiple will drop to 0.0 times bonus target. If BVA increases by the Bonus Sensitivity Factor, the BVA Multiple will rise to 2.0 times bonus target. The payoff schedule is a straight line between and around these points.

  

	 	•	 	 The Compensation Committee reserves the right to adjust performance goals (up or down) for significant acquisitions, divestitures or events that were
not contemplated when the performance goals were initially set. 

 DETERMINING THE ANNUAL INCENTIVE AWARD 

 

	 	•	 	 Once the FY 2012 plan year has been completed, the safety and financial performance of the corporation will be determined.

  

	 	•	 	 The actual incentive award earned by each participant will be the sum of the incentive award earned for each KPI including Individual Performance.

  

	 	•	 	 The BVA bonus multiple is capped at 3.0 times bonus target and has a floor of 0.0 times bonus target. In a year where the bonus multiple is above the
cap or below the floor, it is expected that the benchmark for measuring the following year change in BVA is the BVA that would have resulted in exactly reaching the cap or floor. 

 

	 	•	 	 Incentive Awards will be paid as soon as practical after the end of the plan year and completion and certification of the outside audit of financial
results. Awards to US taxpayers will be made no later than 75 days after the end of the fiscal year. All other awards will be included as soon as administratively feasible, but no later than the end of the month following approval by the Committee.

  

	 	•	 	 An individual will not receive his/her incentive award until they have signed a certification of performance under the Code of Business Integrity. The
Company may recover the incentive award if it is found that the certification was signed with the knowledge of, or participation in, a prohibited act. 

  
  

4 

 ADMINISTRATION OF PLAN 

 

	 	•	 	 The Compensation Committee approves the plan, with day-to-day responsibility for administration delegated to management. The Committee will interpret
the plan and make appropriate adjustments as necessary. All interpretations made by the Committee are final. 

  

	 	•	 	 The Compensation Committee will certify the performance results of the company and the total incentive awards paid at the end of the plan year.

  

	 	•	 	 The incentive awards for the year will be accrued and charged as an expense, before determining the financial performance under the plan.

  

	 	•	 	 Except as provided below, participants whose employment is terminated for any reason prior to payment will not be eligible to receive an award.

  

	 	•	 	 Participants whose employment is terminated without cause, or for reason of death, disability or normal retirement may be eligible for a pro-rated
award in the discretion of management. 

  

	 	•	 	 The Committee, in its sole discretion, may make special incentive awards to any individual in order to recognize special performance or contributions.

  

	 	•	 	 This plan is adopted pursuant to the Bristow Group Inc. 2007 Long Term Incentive Plan and will be administered by the Compensation Committee in
accordance with the provisions thereof. 

  
  

5 

 BRISTOW GROUP INC. 

FY 2012 ANNUAL INCENTIVE COMPENSATION PLAN 

ATTACHMENT I 
 PERFORMANCE MEASURES 
 The following performance levels are
established for Safety KPI’s for fiscal year 2012: 
  

													
	 KPI
	  	Entry	 	  	Expected	 	  	Maximum	 
	 BSI
	  	 	.29	  	  	 	.20	  	  	 	.14	  
	 Payout multiple
	  	 	.4x	  	  	 	1x	  	  	 	2x	  
	 CAA
	  	 	2 accidents	  	  	 	1 accident	  	  	 	0 accidents	  
	 Payout multiple
	  	 	.4x	  	  	 	1x	  	  	 	2x	  

  
  

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]