Document:

MDU Construction Services EICP Plan and Rules & Regulations

    MDU
      CONSTRUCTION SERVICES GROUP, INC.

    EXECUTIVE
      INCENTIVE COMPENSATION PLAN

    ____________________________________________________________

    

    I.     PURPOSE

    The
      purpose of the Executive Incentive Compensation Plan (the
      "Plan") is to provide an incentive for key executives of MDU Construction
      Services Group, Inc. (formerly known as Utility Services, Inc.) (the "Company")
      and any subsidiaries participating in the Plan (each a "Subsidiary", and
      together, the "Subsidiaries") to focus their efforts on the achievement of
      challenging and demanding corporate objectives. The Plan is designed to reward
      successful corporate performance calculated from January 1 to December 31 of
      each Plan Year, as measured against specified performance goals as well as
      exceptional individual performance. When corporate or subsidiary performance
      reaches or exceeds the performance targets and individual performance is
      exemplary, incentive compensation awards, in conjunction with salaries, will
      provide a level of compensation which recognizes the skills and efforts of
      the
      key executives.

    

    II.     BASIC
      PLAN CONCEPT 

    The
      Plan
      provides an opportunity to earn annual incentive compensation based on the
      achievement of specified annual performance objectives. A target incentive
      award
      for each individual within the Plan is established based on the position level
      and actual base salary, provided, however, that the Compensation Committee
      of
      the Board of Directors (the "Committee") of the Company in its sole discretion
      may, instead of actual base salary, use the assigned salary grade market value
      (midpoint) ("Salary"). The target incentive award represents the amount to
      be
      paid, subject to the achievement of the performance objective targets
      established each year. Larger incentive awards than target may be authorized
      when performance exceeds targets; lesser or no amounts may be paid when
      performance is below target.

    It
      is
      recognized that during a Plan Year major unforeseen changes in economic and
      environmental conditions or other significant factors beyond the control of
      management may substantially affect the ability of the Plan Participants to
      achieve the specified performance goals. Therefore, in its review of corporate
      performance the Committee, in consultation with the Chief Executive Officer
      of
      MDU Resources Group, Inc., may modify the performance targets. However, it
      is
      contemplated that such target modifications will be necessary only in years
      of
      unusually adverse or favorable external conditions.

    

    III.     ADMINISTRATION

    The
      Plan
      shall be administered by the Committee with the assistance of the President
      of
      the Company. The Committee shall approve annually, prior to the beginning of
      each Plan Year, the list of eligible Participants, and the target incentive
      award level for each position within the Plan. The Plan's performance targets
      for the year shall be approved by the Committee no later than its regularly
      scheduled February meeting during that Plan Year. The Committee shall have
      final
      discretion to determine actual award payment levels, method of payment, and
      whether or not payments shall be made for any Plan Year.

    The
      Board
      of Directors of the Company may, at any time and from time to time, alter,
      amend, supersede or terminate the Plan in whole or in part, provided that no
      termination, amendment or modification of the Plan shall adversely affect in
      any
      material way an award that has met all requirements for payment without the
      written consent of the Participant holding such award, unless such termination,
      modification or amendment is required by applicable law.

    

    IV.     ELIGIBILITY

    Key
      executives of the Company or the Subsidiaries who are determined by the
      Committee to have a key role in both the establishment and achievement of
      Company and/or Subsidiary objectives shall be eligible to participate in the
      Plan.

    Nothing
      in the Plan shall interfere with or limit in any way the right of the Company
      or
      any Subsidiary to terminate any Participant's employment at any time, for any
      reason or no reason in the Company's or a Subsidiary's sole discretion, or
      confer upon any Participant any right to continue in the employment of the
      Company or any Subsidiary. No executive shall have the right to be selected
      to
      receive an award under the Plan, or, having been so selected, to be selected
      to
      receive a future award.

    

    V.     PLAN
      PERFORMANCE MEASURES

    Performance
      measures shall be established that consider shareholder and customer interests.
      These measures shall be evaluated annually based on achievement of specified
      goals. 

    The
      performance measure reflective of shareholders' interest will be the percentage
      attainment of corporate goals, as determined each year by the Committee. This
      measure may be applied at the Company level for some individuals, such as the
      President, whose major or sole impact is Company-wide, or at the Subsidiary
      level for individuals whose major or sole impact is on Subsidiary
      results.

    Individual
      performance will be assessed based on the achievement of annually established
      individual objectives.

    Threshold,
      target and maximum award levels will be established annually for each
      performance measure. The Committee will retain the right to make all
      interpretations as to the actual attainment of the desired results and will
      determine whether any circumstances beyond the control of management need to
      be
      considered.

    

    VI.     TARGET
      INCENTIVE AWARDS 

    Target
      incentive awards will be expressed as a percentage of each Participant's Salary.
      These percentages shall vary by position and reflect larger reward opportunity
      for positions having greater effect on the establishment and accomplishment
      of
      the Company's or a Subsidiary's objectives. A schedule showing the target awards
      as a percentage of Salary for eligible positions will be prepared by the
      Committee for each Plan Year.

    

    VII.     INCENTIVE
      FUND DETERMINATION

    The
      target incentive fund is the sum of the individual target incentive awards
      for
      all eligible Participants. Once the incentive targets have been determined
      by
      the Committee, a target incentive fund shall be established and accrued ratably
      by the Company. The incentive fund and accruals may be adjusted during the
      year.

    After
      the
      close of each Plan Year, the Company will prepare an analysis showing the
      Company's and each Subsidiary's performance in relation to each of the
      performance measures employed. This will be provided to the Committee for review
      and comparison to threshold, target and maximum performance levels. In addition,
      any recommendations of the President will be presented at this time. The
      Committee will then determine the amount of the target incentive fund
      earned.

    

    VIII.    INDIVIDUAL
      AWARD DETERMINATION

    Each
      individual Participant's award will be based first upon the level of performance
      achieved by the Company and/or the Subsidiary and secondly based upon the
      individual's performance. The criteria applicable for assessing individual
      performance will be approved by the Committee no later than its regularly
      scheduled February meeting during the Plan Year. The assessment by the
      Committee, after consultation with the President, of achievement relative to
      the
      established criteria, as determined by a percentage from 0 percent to 200
      percent, will be applied to the Participant's target incentive award which
      has
      been first adjusted for Company or Subsidiary performance.

    

    IX.     PAYMENT
      OF AWARDS

    Except
      as
      provided below or as otherwise determined by the Committee, in order to receive
      an award under the Plan, the Participant must remain in the employment of the
      Company or the Subsidiary for the entire Plan Year. If a Participant terminates
      employment with the Company pursuant to Section 5.01 of the Company's Bylaws
      which provides for mandatory retirement for certain officers on their 65th
      birthday (or terminates employment with a Subsidiary pursuant to a similar
      Subsidiary Bylaw provision) and if the Participant's 65th birthday occurs during
      the Plan Year, determination of whether the performance measures have been
      met
      will be made at the end of the Plan Year, and to the extent met, payment of
      the
      award will be made to the Participant, prorated. Proration of awards shall
      be
      based upon the number of full months elapsed from and including January to
      and
      including the month in which the Participant's 65th birthday occurs.

     A
      Participant who transfers
      between the Company or a Subsidiary and another company in the MDU Resources
      Group, Inc. system may receive a prorated award at the discretion of the
      Committee. 

    Payments
      made under this Plan will not be considered part of compensation for pension
      purposes. Payments will be made in cash no later than March 15 of the year
      following the end of the calendar year for which the award is earned.

    

    X.     ACCOUNTING
      RESTATEMENTS 

    This
      Section X shall apply only to incentive awards granted to Participants in the
      Plan who are employees of the Company. Notwithstanding anything in the Plan
      or
      the Plan's Rules and Regulations to the contrary, if the Company's audited
      financial statements are restated, the Committee may, in accordance with the
      Company's Guidelines
      for Repayment of Incentives Due to Accounting Restatements,
      take
      such actions as it deems appropriate (in its sole discretion) with respect
      to

    (a) unpaid
      incentive awards under the Plan (including incentive awards relating to
      completed Plan Years, but with respect to which payments have not yet been
      made)
      ("Outstanding Awards") and 

    (b) prior
      incentive awards that were paid within the 3 year period preceding the
      restatement ("Prior Awards"), provided such Prior Awards were not paid prior
      to
      the date the Plan was amended to add this Section X, 

    if
      the
      calculation of the amounts payable or paid under such awards are, or would
      have
      been, directly impacted by the restatement, including, without limitation,
      (i)
      securing (or causing to be secured) repayment of some or all payments made
      pursuant to Prior Awards, (ii) making (or causing to be made) additional
      payments, (iii) reducing or otherwise adjusting the amount payable pursuant
      to
      Outstanding Awards and/or (iv) causing the forfeiture of Outstanding Awards.
      The
      Committee may, in its sole discretion, take different actions pursuant to this
      Section X with respect to different awards, different Participants (or
      beneficiaries) and/or different classes of awards or Participants (or
      beneficiaries). The Committee has no obligation to take any action permitted
      by
      this Section X. The Committee may consider any factors it chooses in taking
      (or
      determining whether to take) any action permitted by this Section X, including,
      without limitation, the following:

    (A) The
      reason for the restatement of the financial statements;

    (B) The
      amount of time between the initial publication and subsequent restatement of
      the
      financial statements; and

    (C) The
      Participant's current employment status, and the viability of successfully
      obtaining repayment.

    If
      the
      Committee requires repayment of all or part of a Prior Award, the amount of
      repayment may be based on, among other things, the difference between the amount
      paid to the individual and the amount that the Committee determines in its
      sole
      discretion should have been paid based on the restated results. The Committee
      shall determine whether repayment shall be effected (i) by seeking repayment
      from the Participant, (ii) by reducing (subject to applicable law and the terms
      and conditions of the applicable plan, program or arrangement) the amount that
      would otherwise be provided to the Participant under any compensatory plan,
      program or arrangement maintained by the Company or any of its affiliates,
      (iii)
      by withholding payment of future increases in compensation (including the
      payment of any discretionary bonus amount) or grants of compensatory awards
      that
      would otherwise have been made in accordance with the Company's otherwise
      applicable compensation practices, or (iv) by any combination of the foregoing.
      Additionally, by accepting an incentive award under the Plan, Participants
      acknowledge and agree that the Committee may take any actions permitted by
      this
      Section X with respect to Outstanding Awards to the extent repayment is to
      be
      made pursuant to another plan, program or arrangement maintained by the Company
      or any of its affiliates.

     

    
 

    MDU
      CONSTRUCTION SERVICES GROUP, INC.

    EXECUTIVE
      INCENTIVE COMPENSATION PLAN

    RULES
      AND REGULATIONS

     

    The
      Compensation Committee of the Board of Directors of MDU Construction Services
      Group, Inc. (formerly known as Utility Services, Inc.) (the "Company") hereby
      adopts the following Rules and Regulations for the administration of the
      Executive Incentive Compensation Plan (the "Plan"). 

    

    I.     DEFINITIONS

    The
      following definitions shall be used for purposes of these
      Rules and Regulations and for the purpose of administering the
      Plan:

    

    
      	 	
              1.

            	
              The
                "Committee" shall be the Compensation Committee of the Board of Directors
                of the Company.

            

    

    

    
      	 	
              2.

            	
              The
                "Company" shall refer to MDU Construction Services Group,
                Inc.

            

    

    

    
      	 	
              3.

            	
              "Participants"
                for any Plan Year shall be those key executives of the Company or
                Subsidiaries who have been approved by the Committee as eligible
                for
                participation in the Plan for such Plan
                Year.

            

    

    

    
      	 	
              4.

            	
              "Payment
                Date" shall be the date set by the Committee for payment of awards,
                which
                shall be no later than March 15 of the year following the end of
                the
                calendar year for which the award is
                earned.

            

    

    

    
      	 	
              5.

            	
              The
                "Plan" shall refer to the MDU Construction Services Group, Inc. Executive
                Incentive Compensation Plan.

            

    

    

    
      	 	
              6.

            	
              The
                "Plan Year" shall be January 1 through December
                31.

            

    

    

    
      	 	
              7.

            	
              "Retirement"
                means the later of the day the Participant attains age 55 or the
                day the
                Participant ceases to be an employee of the Company, MDU Resources
                Group,
                Inc. or any subsidiary of MDU Resources Group,
                Inc.

            

    

    

    
      	 	
              8.

            	
              "Subsidiary"
                means any subsidiary of the Company participating in the
                Plan.

            

    

    

    II.     ADMINISTRATION

    

    
      	 	
              1.

            	
              The
                Committee shall have the full power to construe and interpret the
                Plan and
                to establish and to amend these Rules and Regulations for its
                administration.

            

    

    

    
      	 	
              2.

            	
              No
                member of the Committee shall participate in a decision as to that
                member's own eligibility for, or award of, an incentive award
                payment.

            

    

    

    
      	 	
              3.

            	
              Prior
                to the beginning of each Plan Year, the Committee shall approve a
                list of
                eligible key executives and notify those so approved that they are
                eligible to participate in the Plan for such Plan
                Year.

            

    

    

    
      	 	
              4.

            	
              Prior
                to the beginning of each Plan Year, the Committee shall approve an
                Annual
                Operating Plan. The Annual Operating Plan shall include the Plan's
                performance measures and target incentive award levels for each salary
                grade covered by the Plan for the following Plan Year. The Committee
                shall
                set threshold, target and maximum award levels for performance. These
                levels shall be included in the Annual Operating Plan. The Plan's
                performance targets for the year shall be approved by the Committee
                no
                later than its regularly scheduled February meeting during the Plan
                Year.
                The Annual Operating Plan, insofar as it is relevant to each individual
                Participant, shall be made available by the Committee to each Participant
                in the Plan.

            

    

    

    
      	 	
              5.

            	
              The
                Committee shall have final discretion to determine actual award payment
                levels and whether or not payments shall be made for any Plan Year.
                However, unless the Plan's performance objectives are met for the
                Plan
                Year, no award shall be made for that Plan Year. Performance targets
                modified pursuant to Section II of the Plan will be deemed performance
                targets for purposes of determining whether or not these targets
                have been
                met.

            

    

    

    III.     PLAN
      PERFORMANCE MEASURES

    

    
      	 	
              1.

            	
              The
                Committee shall establish the percentage attainment of corporate
                performance measure and the percentage attainment of individual goals
                measure. The Committee may establish more or fewer performance measures
                as
                it deems necessary.

            

    

    

    
      	 	
              2.

            	
              The
                corporate performance measure may be set by reference to earnings,
                return
                on invested capital or any other measure or combination of measures
                deemed
                appropriate by the Committee. It may be established for the Company
                or for
                a Subsidiary.

            

    

    

    
      	 	
              3.

            	
              Individual
                performance will be assessed based on the achievement of annually
                established individual objectives.

            

    

    

    
      	 	
              4.

            	
              Plan
                performance measures may be applied at the Company level for individuals
                such as the President whose major or sole impact is Company-wide,
                or at
                the Subsidiary level for individuals whose major or sole impact is
                on
                Subsidiary results. The Annual Operating Plan shall contain a list
                of
                individuals to whom the Plan performance measures will be applied
                at the
                Company level and a list of those individuals for whom the Plan
                performance measures will be applied at the Subsidiary level. The
                relevant
                Subsidiary for each individual will be
                identified.

            

    

    

    
      	 	
              5.

            	
              The
                Committee shall set threshold, target and maximum award levels for
                the
                performance measures for each Subsidiary and for the Company. Those
                levels
                shall be included in the Annual Operating
                Plan.

            

    

    

    
      	 	
              6.

            	
              The
                Committee will retain the authority to determine whether or not the
                actual
                attainment of these measures has been
                made.

            

    

    

    IV.   TARGET
      INCENTIVE AWARDS 

    

    
      	 	 	
              1.

            	
              Target
                incentive awards will be a percentage of each Participant's Salary,
                as
                defined in the Plan.

            

    

    

    
      	 	 	
              2.

            	
              Target
                incentive awards shall be set by the Committee annually and will
                be
                included in the Annual Operating
                Plan.

            

    

    

    V.   INCENTIVE
      FUND DETERMINATION

    

    
      	 	 	
              1.

            	
              The
                target incentive fund is the sum of the individual target incentive
                awards
                for all eligible Participants.

            

    

    

    
      	 	 	
              2.

            	
              Once
                individual incentive targets have been determined, a target incentive
                fund
                shall be established and accrued ratably by the Company. The incentive
                fund and accruals may be adjusted during the
                year.

            

    

    

    
      	 	 	
              3.

            	
              As
                soon as practicable following the close of each Plan Year, the President
                will provide the Committee with an analysis showing the Company's
                and each
                Subsidiary's performance in relation to the performance measures.
                The
                Committee will review the analysis and determine, in its sole discretion,
                the amount of the actual incentive
                fund.

            

    

    

    
      	 	 	
              4.

            	
              In
                determining the actual incentive fund, the Committee may consider
                any
                recommendations of the President.

            

    

    

    VI.  INDIVIDUAL
      AWARD DETERMINATION

    

    
      	 	
              1.

            	
              The
                Committee shall have the sole discretion to determine each individual
                Participant's award. The Committee's decision will be based first
                upon the
                level of performance achieved by the Company and/or the Subsidiary
                and
                secondly upon the individual's
                performance.

            

    

    

    
      	 	
              2.

            	
              The
                Committee, after consultation with the President, shall set the award
                as a
                percentage from 0 percent to 200 percent of the Participant's target
                incentive award, adjusted for Company or Subsidiary
                performance.

            

    

    

    VII.   PAYMENT
      OF AWARDS

    

    
      	 	
              1.

            	
              On
                the date the Committee determines the awards to be made to individual
                Participants, it shall also establish the Payment
                Date.

            

    

    

    
      	 	
              2.

            	
              Except
                as provided below or as the Committee otherwise determines, in order
                to
                receive an award under the Plan, a Participant must remain in the
                employment of the Company or the Subsidiary for the entire Plan
                Year.

            

    

    

    
      	 	
              3.

            	
              A
                Participant who transfers between the Company or a Subsidiary and
                another
                company in the MDU Resources Group, Inc. system may receive a prorated
                award at the discretion of the
                Committee.

            

    

    

    
      	 	
              4.

            	
              If
                a Participant terminates employment with the Company pursuant to
                Section
                5.01 of the Company's Bylaws which provides for mandatory retirement
                for
                certain officers on their 65th
                birthday (or terminates employment with a Subsidiary pursuant to
                a similar
                Subsidiary Bylaw provision) and if the Participant's 65th
                birthday occurs during the Plan Year, determination of whether the
                performance measures have been met will be made at the end of the
                Plan
                Year, and to the extent met, payment of the award will be made to
                the
                Participant, prorated. Proration of awards shall be based upon the
                number
                of full months elapsed from and including January to and including
                the
                month in which the Participant's 65th
                birthday occurs.

            

    

    

    
      	 	
              5.

            	
              Payment
                of the award shall be made in cash. Payments shall be made on the
                Payment
                Date.exhibit10-1.htm

    
      

    

    Exhibit
      10.1

    BRISTOW
      GROUP INC.

    

    FY
      2008 Annual Incentive Compensation Plan

    

    Plan
      Provisions

    May
      3, 2008

    

    PURPOSE

    

    To
      provide selected corporate officers and managers, subsidiary Presidents,
      Directors and managers the opportunity to share in the improved performance
      of
      the company by achieving specific corporate and business unit financial 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

    

    
      	
              ·  

            	
              Selected
                Corporate Officers, Directors and Managers, and Subsidiary Presidents,
                Directors, and Managers may be eligible to participate in the
                plan.  Participants are recommended by the CEO and approved by
                the Compensation Committee.

            

    

    

    
      	
              ·  

            	
              Employees
                who are 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.

            

    

    

    
      	
              ·  

            	
              Participants
                will be assigned to a specific eligibility level.  For each
                eligibility level an Entry, Expected and Target incentive award
                opportunity is defined as follows:

            

    

    

    
      	
              Eligibility
                Level

              (Salary
                Grades)

            	
              Entry
                Award Opportunity

               %
                of Base

            	
              Expected
                Award Opportunity

              %
                of Base

            	
              Target
                Award Opportunity

              %
                of Base

            
	
              E16

            	
              15.0%

            	
              100%

            	
              200%

            
	
              E14-E15

            	
              11.25%

            	
              75%

            	
              150%

            
	
              E11-13

            	
              7.5%

            	
              50%

            	
              100%

            
	
              E9-10

            	
              6.0%

            	
              40%

            	
              80%

            
	
              E7-8

            	
              4.5%

            	
              30%

            	
              60%

            
	
              E4-6

            	
              3.0%

            	
              20%

            	
              40%

            
	
              E3

            	
              2.25%

            	
              15%

            	
              30%

            
	
              E1-2

            	
              1.5%

            	
              10%

            	
              20%

            

    

    

    

    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 approves the KPI’s and weights
                annually.

            

    

    

    
      	
              ·  

            	
              Participants
                assigned to a corporate-wide position will be assigned financial
                performance measures related to the corporation
                overall.

            

    

    

    
      	
              ·  

            	
              Participants
                assigned to a hemisphere-wide position will be assigned financial
                performance measures related to the hemisphere and the corporation
                overall.

            

    

    

    
      	
              ·  

            	
              Participants
                assigned to a specific business unit position will be assigned financial
                performance measures related to the business unit, the hemisphere,
                and the
                corporation overall.

            

    

    

    
      	
              ·  

            	
              All
                participants will share in the overall performance of the
                corporation.

            

    

    

    
      	
              ·  

            	
              All
                participants will be measured on the safety performance of the applicable
                business unit, hemisphere, or corporation
                overall.

            

    

    

    
      	
              ·  

            	
              Each
                participant will have an “individual performance” component, and will be
                evaluated based on specific individual objectives (scorecard) and
                an
                overall performance evaluation of their contribution to the
                organization.

            

    

    

    
      	
              ·  

            	
              Attachment
                I summarizes the weighting of performance
                measures.

            

    

    

    
      	
              ·  

            	
              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
                II summarizes the KPI’s for the FY08 Incentive
                Plan.

            

    

    

    

    

    KPI
      DEFINITIONS

    

    The
      following definitions will determine the calculation of each KPI.

    

    Capital
      Employed – Capital Employed is measured as of the end of each fiscal
      quarter. The Capital Employed used in ROCE calculations (see below) is the
      average of the beginning Capital Employed and the Capital Employed at each
      measurement date during a reward period (i.e. for FY 2008, the average of
      Capital Employed at March 31, June 30, September 30 and December 31, 2007 and
      March 31, 2008). Capital Employed for an SBU is calculated at each measurement
      date as the FMV of all owned aircraft employed in the SBU plus the FMV of all
      aircraft held for sale by the SBU plus the NBV of all non-cash working capital,
      land, buildings and other assets, investments and goodwill attributable to
      the
      SBU. Capital Employed for a Hemisphere or Corporate Entity is defined as the
      sum
      of the Capital Employed by the SBUs comprising that Hemisphere or Corporate
      Entity plus any other assets attributable to that Hemisphere or Corporate
      Entity.

    

    Consolidated
      Corporate EPS - Fully Diluted Earning per Share, determined in
      accordance with generally accepted accounting principles.

    

    Corporate
      EBITDA Return on Capital Employed - ROCE is defined as Earnings before
      Interest, Taxes, Depreciation, and Amortization
      (EBITDA) divided by Bristow consolidated Capital Employed
      for the associated period.

    

    Business
      Unit EBITDA - Business Unit earnings before Interest, Taxes,
      Depreciation, and Amortization, exclusive of inter-company lease revenue and
      expense.

    

    Business
      Unit EBITDA Return on Capital Employed - Business Unit ROCE is defined
      as Business Unit Earnings before Interest, Taxes, Depreciation, and Amortization
      (EBITDA) divided by the Business Unit’s Capital Employed for the plan
      year.

    

    TRIR
      - TRIR is defined as the Bristow Group consolidated or SBU Total
      Recordable Incident Rate (TRIR) for the fiscal year.

    

    LWCR
      Rate– LWCR Rate is defined as the number of Lost Work Case Accidents
      per 200,000 man hours incurred by Bristow Group or an SBU.

    

    Air
      Accident Rate– Flight accident rate is defined as the number of Air
      Accidents per 100,000 flight hours by Bristow Group or an SBU. Air accidents
      are
      defined by the International Civil Aviation Organizations (ICAO) Annex 13 and
      are in compliance with the NTSB and CAA definitions.

    

    Fatality
      – If during the plan year any business unit or division experiences
      a
      fatality in ground or air operations, the award for the safety performance
      component will be zero for all participants in that business unit or division,
      as well as for all the participants in that business unit or division’s
      organizational reporting chain up to, and including, the participants at the
      corporate level.

    

    Individual
      Performance - Individual performance will relate specifically to the
      individual. Each individual participant should be evaluated on individual
      objectives (Scorecard) 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 level of award for this component is at management
      discretion with approval of the Compensation Committee.

    

    PERFORMANCE
      GOALS

    

    
      	
              ·  

            	
              For
                each performance measure, goals for the Entry, Expected, and Target
                levels
                of performance will be established.

            

    

    

    
      	
              ·  

            	
              For
                FY’08 Expected Performance is set at 90% of the FY 2008 financial plan.
                Entry Performance is set at 80% of Expected Performance and Target
                Performance is set at 120% of Expected
                Performance.

            

    

    

    
      	
              ·  

            	
              Financial
                performance goals are based on the Board approved Corporate and Business
                Unit operating budgets.

            

    

    

    
      	
              ·  

            	
              Individual
                objectives are determined based on the individual’s ability to directly
                impact the outcome and an overall assessment of the individual’s
                contributions.  The Compensation Committee is responsible to
                evaluate the individual performance of the CEO and approve the CEO’s
                performance assessments of all other
                participants.

            

    

    

    
      	
              ·  

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

            

    

    

    
      	
              ·  

            	
              The
                non-discretionary performance goals for FY’08 are shown in Attachment
                II.

            

    

    

    
      	
              ·  

            	
              The
                weighting of the safety measures is as
                follows:

            

    

    
      	
              o  

            	
              Corporate
                participants’ safety awards are based 100% on consolidated group
                performance and distributed 33.33% on Total Recordable Incident Rate
                (TRIR); 33.3% Lost Work Case Rate (LWCR); 33.33% on Air Accident
                Rate
                (AAR).

            

    

    
      	
              o  

            	
              Hemisphere/Division
                (aviation) participants’ safety awards are based 50% on consolidated group
                performance and 50% on their hemisphere/division performance, and
                distributed 33.333% TRIR; 33.33% LWCR; 33.33%
                AAR.

            

    

    
      	
              o  

            	
              Business
                unit participants’ safety awards are based 50% on consolidated group
                performance and 50% on their business unit performance, and distributed
                33.33% on TRIR; 33.33% on LWCR; 33.33% on
                AAR.

            

    

    
      	
              o  

            	
              Grasso
                participant’s safety awards are based 50% on consolidated group
                performance and 50% on their divisions’ performance, and distributed 50%
                TRIR and 50% LWCR.

            

    

    

    DETERMINING
      THE ANNUAL INCENTIVE AWARD

    

    
      	
              ·  

            	
              Once
                the FY 2008 plan year has been completed, the financial performance
                of the
                corporation and each business unit will be determined.  For each
                financial performance measure the performance level will be determined
                based on the standards established at the beginning of the plan
                year.  Interpolation will be used between Entry and Expected and
                Expected and Target.

            

    

    

    
      	
              ·  

            	
              Each
                participant will meet with his or her supervisor to evaluate the
                results
                achieved for each individual objective.  The performance level
                for the individual component will be determined between Entry and
                Target
                based on the standards established at the beginning of the plan year
                and
                management’s assessment.

            

    

    

    
      	
              ·  

            	
              The
                actual incentive award earned by each participant will be the sum
                of the
                incentive award earned for each applicable performance
                measure.

            

    

    

    
      	
              ·  

            	
              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 will be made no later than 75 days after the
                end of the fiscal year.  A participant must be employed on the
                date awards are paid in order to receive an
                award.

            

    

    

    
      	
              ·  

            	
              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.

            

    

    
       

      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 approve in advance of the plan year
                  the
                  participants, performance measures and weights, and the performance
                  goals
                  for each participant.

              

      

      

      
        	
                ·  

              	
                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.

              

      

      

      
        	
                ·  

              	
                Participants
                  whose employment is terminated for any reason other than death,
                  disability, normal retirement, or “without cause” prior to payment of
                  incentive awards will not be eligible to receive an
                  award.

              

      

      
        
          

            
              	
                      ·  

                    	
                      Participants
                        whose employment is terminated for reason of death, disability,
                        normal
                        retirement, or “without cause” may be eligible for a pro-rated award at
                        the recommendation of management, and approval by the Compensation
                        Committee.

                    

            

            

            
              	
                      ·  

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

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