Document:

EX-10.4

 Exhibit 10.4 

EXECUTION VERSION 

SECURITY AGREEMENT 
 This Security
Agreement (this “Security Agreement”), dated and effective as of September 28, 2018 (the “Effective Date”), is made by PHI, Inc., a Louisiana corporation, PHI Air Medical, L.L.C., a Louisiana limited liability company, and PHI
Tech Services, Inc., a Louisiana corporation (individually and collectively, “Grantor”) in favor of Thirty Two, L.L.C., a Nevada limited liability company (“Secured Party”). 

The terms and conditions of that certain Loan Agreement dated as of the date hereof (as amended, supplemented, restated or otherwise modified from time to
time, the “Loan Agreement”), by and among PHI, Inc., a Louisiana corporation (“Borrower”), PHI Air Medical, L.L.C., and PHI Tech Services, Inc., as Subsidiary Guarantors, and Secured Party, as Lender, are incorporated herein by
reference and are a part of the terms and conditions of this Security Agreement. Capitalized terms used herein but not defined herein shall have the meanings ascribed to them in the Loan Agreement. In the event of actual conflict in the terms and
provisions of this Security Agreement and the Loan Agreement, the terms and provisions of the Loan Agreement will control. 
 To secure payment and
performance of the Loan and all other obligations and liabilities of Grantor and Borrower, and of any one or more of them, to Secured Party, arising under the Loan Agreement, the Note, the Guaranty, this Security Agreement and all other loan and
collateral documents contemplated by the Loan Agreement, direct or contingent, due or to become due, now existing or hereafter arising, including, without limitation, all future advances, with interest, attorneys’ fees, expenses of collection
and costs, and further including, without limitation, obligations to Secured Party on promissory notes, checks, overdrafts, letter-of-credit agreements, loan agreements,
security documents, endorsements, continuing guaranties and agreements with respect to any swap, forward, future, or derivative transaction or option or similar agreement involving, or settled by reference to, one or more interest rates, currencies,
commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value (collectively, the “Obligations”), Grantor pledges to Secured Party, and grants to
Secured Party a continuing security interest in, and a right of set-off and compensation against, the following described property, now or hereafter owned by Grantor and wherever located (collectively, the
“Collateral”): 
  

	 	(i)	 all accounts of Grantor; 

 

	 	(ii)	 all inventory of Grantor; 

 

	 	(iii)	 all Spare Parts (as hereinafter defined) maintained by or on behalf of Grantor; and 

 

	 	(iv)	 all property added to or substituted for any of the foregoing, and all interest, income, fruits, returns,
accessions, profits, products and proceeds of any of the foregoing. 

 Notwithstanding the foregoing, any inventory or Spare Parts located
in any jurisdiction outside of the United States of America shall not constitute Collateral. 
 The Spare Parts are located at the locations identified on
Exhibit A annexed hereto. The Spare Parts are being maintained by or on behalf of PHI, Inc. and PHI Air Medical, L.L.C., each an air carrier certificated under 49 U.S.C. 44705. 

 

 The term “Spare Parts” shall mean, until installed in any aviation unit or aircraft, all aircraft
engines, propellers, rotors, appliances, tires, airframes, spare parts, radios, and other communication equipment together with all other aircraft appliances, instruments, electronics, mechanisms, appurtenances, accessories, equipment and parts or
component parts thereof, of such person wherever maintained, now or hereafter existing, whether acquired by purchase or otherwise and whether held by such person for use in its business or held by such person for sale or lease or to be furnished by
such person under contracts of service, and all proceeds thereof and accessories thereto. 
 The terms “accounts,” “account debtor,”
“chattel paper,” “documents,” “equipment,” “instruments,” “inventory,” and “proceeds” shall have the meanings provided in the Louisiana Commercial Laws. 

Grantor further authorizes Secured Party at any time and without further consent from Grantor to file a carbon, photographic or other reproduction of this
Security Agreement or Grantor’s financing statement as a financing statement. All Collateral shall remain subject to this Security Agreement until all of the Obligations have been indefeasibly paid in full. Secured Party may renew any renewable
items included in the Collateral. All interest, income, fruits, returns, accessions, profits and proceeds with respect to the Collateral shall be delivered upon receipt to Secured Party in negotiable form. Grantor shall execute any endorsements,
assignments and financing statements with respect to the Collateral, in form and substance satisfactory to Secured Party that Secured Party may reasonably request. Grantor represents and warrants that (a) Secured Party shall at all times have a
perfected first priority security interest in the Collateral free of all other security interests, liens and claims other than as expressly permitted by the Loan Agreement, and (b) the description and identification of the Collateral,
Grantor’s name, taxpayer identification number, and chief executive office, and the location of the Spare Parts are correctly stated herein. Grantor shall prevent the accrual of prescription or statute of limitations with respect to the
Collateral no later than sixty (60) days prior to the date on which enforcement would be barred, and shall execute any additional documents reasonably required to perfect the security interest of Secured Party in the Collateral. Should any
Collateral decline in value after the date of this Security Agreement in a manner that would be reasonably expected to have a material adverse effect on the Grantors, taken as a whole, Grantor shall, within five (5) days after receiving notice
from Secured Party of such decline in value, grant a security interest in additional property satisfactory to Secured Party. Grantor authorizes Secured Party, in its sole discretion during the continuance of a Default (a) to notify the obligor
on any Collateral to make payments directly to Secured Party; (b) to receive and recover any money or other property at any time due with respect to the Collateral and in connection therewith, endorse notes, checks, drafts or other evidence of
payments; and (c) to settle, adjust and compromise, in Secured Party’s sole discretion, all present and future claims arising with respect to the Collateral. Secured Party is not obligated to take any of the foregoing actions or to
preserve Grantor’s rights with respect to the Collateral including, without limitation, rights against prior parties and shall not be liable in any manner with respect to the Collateral. Any responsibility of Secured Party with respect to the
Collateral, whether arising contractually or as a matter of law, is hereby expressly waived. 
 Grantor agrees to administer its accounts and the proceeds
thereof in a prudent manner in accordance with this Security Agreement and take all actions reasonably necessary to collect the accounts. Upon request by Secured Party and upon the occurrence and continuance of a Default, Grantor shall
(a) furnish to Secured Party a list of the accounts, showing the name, address and the amount owed by each account debtor, and (b) notify all account debtors that its accounts are subject to a security agreement with Secured Party and is
payable to Secured Party at Secured Party’s address. If Grantor accepts chattel paper or instruments in payment of accounts, goods or services, Grantor shall promptly deliver all such chattel paper and instruments to Secured Party in negotiable
form. 
 Grantor shall at all times during business hours with reasonable prior notice permit Secured Party, its officers and agents, access to the
Collateral and to all books, records and data relating to the Collateral, for inspection and for verification of the existence, condition and value of the Collateral. Grantor shall furnish all assistance and information that Secured Party may
require to conduct such inspections and verifications. 

  
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 All corporeal (tangible) Collateral shall be insured by solvent insurance companies for full replacement
value under policies acceptable to Secured Party, designating Secured Party as lender loss payee. Grantor shall not alienate or encumber the Collateral, except for sales of inventory, goods or services in the ordinary course of Grantor’s
business and as otherwise expressly permitted by the Loan Agreement. Grantor shall not create or permit to exist any lien, claim or security interest on the Collateral except in favor of Secured Party and as otherwise expressly permitted by the Loan
Agreement. Grantor shall not, without the prior written consent of Secured Party (a) change Grantor’s domicile, name, legal form or taxpayer identification number, (b) move the location of its principal place of business or chief
executive office, or (c) move the Spare Parts from the locations set forth on Exhibit A or store any Spare Parts at new location(s) not otherwise listed on Exhibit A. If there are any new locations, Borrower shall promptly notify
Secured Party and amend Exhibit A to this Security Agreement to include such new locations and file such amendment with the Federal Aviation Administration. 

Grantor’s taxpayer identification number, mailing address and chief executive office are as set forth on Schedule 1. 

Upon the occurrence and continuance of a Default as specified in Section (I) of the Loan Agreement, then, at the option of Secured Party, the Obligations
shall be immediately due and payable in full without notice or demand, and Secured Party, to the extent permitted by applicable law, (a) may sell, assign, transfer and effectively deliver all or any part of the Collateral at public or private
sale, without recourse to judicial proceedings and without demand, appraisement or advertisement, all of which are hereby expressly waived by Grantor to the fullest extent permitted by law, and (b) may cause all or any part of the Collateral to
be seized and sold, under executory process, under writ of fieri facias issued in execution of an ordinary judgment obtained upon the Obligations, or under other legal procedure. For purposes of executory process, Grantor acknowledges the
indebtedness owed under the Obligations, confesses judgment in favor of Secured Party for the full amount of the Obligations, and agrees to enforcement by executory process. Grantor waives (a) the benefit of appraisal provided in Art. 2723 of
the Louisiana Code of Civil Procedure and (b) the demand provided by Article 2721, Louisiana Code of Civil Procedure. Grantor grants to Secured Party an irrevocable mandate and power of attorney (coupled with an interest) to exercise, after
Default has occurred and is continuing, at Secured Party’s sole discretionary option and without any obligation to do so, all rights that Grantor has with respect to the Collateral, including, without limitation, the right to exercise all
rights of inspection, deriving from Grantor’s ownership of or other interest in the Collateral. If the proceeds from the sale or enforcement of the Collateral are insufficient to satisfy all of the Obligations in full, all parties obligated
thereon shall remain fully obligated for any deficiency. The rights and remedies of Secured Party hereunder are cumulative, may be exercised singly or concurrently, and are in addition to any rights and remedies of Secured Party under applicable
law. 
 Without releasing or affecting any of its rights, Secured Party may, one or more times, in its sole discretion, without notice to or the consent of
any third party obligor, including Grantor or Borrower, as applicable, take any one or more of the following actions: (a) release, renew or modify the obligations of Grantor, Borrower or any other party; (b) release, exchange, modify, or
surrender in whole or in part Secured Party’s rights with respect to any collateral for the Obligations; (c) modify or alter the term, interest rate or due date of any payment of any of the Obligations; (d) grant any postponements,
compromises, indulgences, waivers, surrenders or discharges or modify the terms of its agreements with Grantor or Borrower; (e) change its manner of doing business with Grantor, Borrower or any other party; or (f) impute payments or
proceeds of any collateral furnished for any of the Obligations, in whole or in part, to any of the Obligations, or retain the payments or proceeds as collateral for the Obligations without applying same toward payment of the Obligations, and
Grantor hereby expressly waives any defenses arising from any such actions. 

  
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 The obligations of Grantor hereunder shall be joint, several and solidary and shall bind and obligate
Grantor’s successors and assigns. Secured Party may assign and transfer the Collateral to an assignee of any of the Obligations, whereupon such transferee shall become vested with all powers and rights granted to Secured Party under this
Security Agreement. 
 This Security Agreement shall be governed by the internal laws of the State of Louisiana, provided that where Collateral is located
in a jurisdiction other than Louisiana, remedies available to Secured Party hereunder and under the laws of such jurisdiction shall be available to Secured Party without regard to any restriction of Louisiana law. 

All notices and other communications provided for in this Security Agreement shall be given and deemed delivered in the manners set forth in the Loan
Agreement. 
 If any provision of this Security Agreement shall be held to be legally invalid or unenforceable by any court of competent jurisdiction, all
remaining provisions of this Security Agreement shall remain in full force and effect. 
 Secured Party hereby accepts this Security Agreement. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.] 

  
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 EXECUTION VERSION 

IN WITNESS WHEREOF, this Security Agreement is executed as of the Effective Date. 
  

			
	GRANTOR:
	
	PHI, INC.
		
	By:	 	 /s/ Trudy P. McConnaughhay

	Name:	 	Trudy P. McConnaughhay
	Title:	 	Chief Financial Officer, Treasurer
		 	and Secretary
	
	PHI AIR MEDICAL, L.L.C. 
		
	By:	 	 /s/ Trudy P. McConnaughhay

	Name:	 	Trudy P. McConnaughhay
	Title:	 	Vice President and Treasurer
	
	PHI TECH SERVICES, INC.
		
	By:	 	 /s/ Trudy P. McConnaughhay

	Name:	 	Trudy P. McConnaughhay
	Title:	 	Chief Financial Officer, Vice President and Secretary

  

  
 Signature Page to
Security Agreement 

			
	SECURED PARTY:
	
	THIRTY TWO, L.L.C.
		
	By:	 	 /s/ Al A. Gonsoulin

	Name:	 	Al A. Gonsoulin
	Title:	 	Managing Member

  

  
 Signature Page to
Security Agreement 

 SCHEDULE 1 

Grantor’s mailing address and chief executive office: 2001 S. E. Evangeline Thruway, Lafayette, LA 70508 

Grantor’s tax identification numbers are as follows: [intentionally omitted] 

 EXHIBIT A 

SPARE PARTS 
 [attached
schedule intentionally omitted]EX-10.5

 Exhibit 10.5 

PHI, INC. 
 RETENTION
PLAN 
 In order to encourage the continued employment of certain officers and key employees of PHI, Inc. (“PHI”) and
its subsidiaries (collectively, the “Company”), and to alleviate concerns about any possible loss of employment upon certain changes in control of the Company, PHI has adopted this Retention Plan (this “Plan”),
effective September 20, 2018 (the “Effective Date”). This Plan is intended to qualify as a top hat welfare benefit plan under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).
Capitalized terms used but not defined in this Plan have the respective meanings provided in Appendix A. 
 ARTICLE I 

ADMINISTRATION AND PARTICIPATION 

1.1    Administration of the Plan. The Plan will be administered by the Committee (the
“Administrator”). The Administrator has plenary authority to administer the Plan. Specifically, the Administrator will have full and final authority and discretion over the Plan including, but not limited to, the right, power, and
authority to: (a) designate Participants in accordance with, and subject to, Section 1.2; (b) administer the Plan according to its terms and to resolve all questions of interpretation or application of Plan provisions;
(c) process and approve or deny all claims for benefits under the Plan in accordance with Article VI; (d) correct any defect, address any omission, or reconcile any inconsistency in the Plan in the manner and to the extent it deems
necessary or desirable to further the Plan’s objectives; (d) establish, amend, and rescind any rules, regulations, or policies relating to the administration of the Plan that it determines to be appropriate; and (e) make any other
determination that it believes necessary or advisable for the proper administration of the Plan. The Administrator’s decisions in matters relating to the Plan will be final, binding, and conclusive on all Persons, including, but not limited to,
the Company, its Affiliates, and Participants. Subject to the limitations of Section 1.2, the Committee may delegate its authority to add, subtract, or reclassify Participants to one or more officers of PHI; provided,
however, that the Committee may not delegate such authority with respect to any Participant who is a “Covered Employee” as defined in the Committee’s charter. 

1.2    Participation. Participation in the Plan is limited to a select group of the Company’s management or
highly-compensated employees within the meaning of Sections 201, 301, and 404 of ERISA; provided, however, that such Persons have no rights under the Plan unless and until designated as a Participant in the Plan by the Administrator. Each
individual who is designated as a Participant will be identified by name and position on Appendix B, which provides for a specific Protected Period for each Participant. The Administrator may, in its discretion, amend Appendix B to
add, remove, or reclassify Participants from time to time; provided, however, that upon or after a Change of Control, no Participant may be removed from the Plan or reclassified to a different Protected Period without his or her consent. 

ARTICLE II 
 EFFECT OF A
CHANGE OF CONTROL OF THE COMPANY 
 2.1    Payment of Annual Bonus. Upon a Change of Control, each
Participant who (a) is employed with the Company immediately prior to the Change of Control and (b) is a current participant in an annual or short-term incentive plan sponsored by the Company or its Affiliates, will be entitled to receive
a Pro-Rata Bonus for the year in which the Change of Control occurs. Such Pro-Rata Bonus will be paid to the Participant in a single lump sum as soon as practicable
following the Change of Control, but no later than five business days afterward. 

  
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 2.2    Equity Award Treatment. Upon a Change of Control, each
Participant who (a) is employed with the Company immediately prior to the Change of Control and (b) holds unvested equity awards denominated in shares of PHI, Inc. common stock, will receive automatic accelerated vesting of all such
unvested equity awards, effective upon the occurrence of the Change of Control, with performance on any performance-based awards deemed achieved at target levels. 

ARTICLE III 

COMPENSATION AND BENEFITS DURING THE PROTECTED PERIOD 

3.1    Protected Period. For each Participant who is employed with the Company immediately prior to a Change of
Control, his or her employment shall continue on the terms and conditions provided in this Article III for a specific Protected Period as provided on Appendix B. If the Participant experiences a Qualifying Termination during the
applicable Protected Period, he or she will be entitled to the compensation and benefits provided in Article IV. 

3.2    Conditions of Employment. Upon a Change of Control and during the applicable Protected Period, (a) each
Participant’s position, authority, duties, responsibilities, and reporting relationship must be at least comparable in all material respects with the most significant of those held, exercised, and assigned at any time during the 120-day period immediately preceding the Change of Control, (b) each Participant’s service will be performed during normal business hours at the location where the Participant was employed immediately
preceding the Change of Control or any office or location less than 50 miles from such location, and (c) to the maximum extent possible, each Participant will receive full seniority credit for his or her
pre-Change of Control service to the Company. 
 3.3    Base Salary.
During the applicable Protected Period, each Participant is entitled to receive an annual base salary, paid in installments in accordance with the Company’s regular payroll practices but no less frequently than monthly, at least equal to 12
times the highest monthly base salary paid or payable by the Company and its Affiliates to such Participant at any time during the 120-day period immediately preceding the Change of Control (as increased from
time to time in accordance with this Section 3.3, the “Base Salary”). A Participant’s Base Salary may not be decreased during the applicable Protected Period without his or her written consent. 

3.4    Annual Bonus. In addition to Base Salary, each Participant will be eligible to earn an annual or short-term
incentive for each fiscal year during the applicable Protected Period (the “Bonus”). For each such Bonus, the target annual bonus opportunity, expressed as a percentage of Base Salary then in effect (the “Target
Opportunity”), will be at least equal to the target opportunity for which the Participant is eligible for the year in which the Change of Control occurs, as such target opportunity has been established by the Company for such year under the
applicable incentive plan or any comparable successor plan. If the Company has not yet established a Target Opportunity for a Participant for the fiscal year in which the Change of Control occurs, then the Target Opportunity shall be at least equal
to the last such target opportunity established by the Company for such Participant. Each such Bonus, when earned, will be paid to the Participant in cash no later than two and one half months following the end of the fiscal year for which the Bonus
is awarded, unless the Participant has elected to defer receipt of all or part of the Bonus pursuant to a deferral plan sponsored by the Company. 

  
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 3.5    Long-term Incentive, Savings, and Retirement
Plans.    During the applicable Protected Period, each Participant will be entitled to participate in all equity incentive, savings and retirement plans, practices, policies and programs applicable generally to other peer
employees of the Company, but in no event shall such plans, practices, policies, and programs provide the Participant with equity incentive grants, savings opportunities, and retirement benefit opportunities, in each case, less favorable than the
most favorable of those provided by the Company to the Participant under any agreements, plans, practices, policies and programs as in effect at any time during the 120-day period immediately preceding the
Change of Control or, if more favorable to the Participant, those provided generally at any time after the Change of Control to other peer employees of the Company and its Affiliates. 

3.6    Health and Welfare Benefit Plans. During the applicable Protected Period, each Participant (and his or her
family members or beneficiaries, as the case may be) will be eligible for participation in, and will receive all benefits under, any and all health and welfare benefit plans, practices, policies, and programs provided by the Company (which may
include, without limitation, medical, prescription drug, dental, disability, employee life, group life, accidental death, and travel accident insurance plans and programs) to the extent applicable generally to other peer employees of the Company,
but in no event shall such plans, practices, policies, and programs provide the Participant with benefits, in each case, less favorable than the most favorable of any agreements, plans, practices, policies and programs in effect for the Participant
at any time during the 120-day period immediately preceding the Change of Control or, if more favorable to the Participant, those provided generally at any time after the Change of Control to other peer
employees of the Company and its Affiliates. 
 ARTICLE IV 

TERMINATION OF EMPLOYMENT DURING PROTECTED PERIOD 

4.1    Termination of Employment Generally. In the event that a Participant dies during the applicable Protected
Period, his or her employment will terminate automatically upon death. During the applicable Protected Period, (a) the Company may terminate a Participant’s employment with or without Cause and (b) a Participant may terminate his or
her employment with or without Good Reason. Any termination of a Participant’s employment during the Protected Period, other than as a result of the Participant’s death, must be communicated by written notice of termination to the other
party in accordance with Section 5.5, indicating the specific termination provision relied upon and the effective date of the termination. 

4.2    Accrued Obligations. Upon termination of a Participant’s employment for any reason during the
applicable Protected Period, he or she will be entitled to receive promptly, and in addition to any other benefits specifically provided by this Plan, (a) any earned but unpaid Base Salary through the Termination Date, (b) any accrued but
unpaid vacation pay, and (c) any other amounts or benefits required to be paid or provided or which the Participant, his or her family members, beneficiaries, heirs, or legal representatives is entitled to receive under any plan, program,
policy, practice, or agreement of the Company (collectively, the “Accrued Obligations”). 

  
 3 

 4.3    Termination of Employment due to Death. If, during the
Protected Period, a Participant dies, then, in addition to the Accrued Obligations, such Participant’s beneficiaries, heirs, or legal estate, will be entitled to receive a Pro Rata Bonus for the year in which the Termination Date occurred,
assuming target performance, which will be paid in a lump sum within 30 days of the Termination Date. 

4.4    Qualifying Termination. If a Participant experiences a Qualifying Termination, then, in addition to the
Accrued Obligations, the Participant will be entitled to receive (a) a cash payment equal to the sum of (i) the Participant’s Base Salary multiplied by the applicable Severance Multiple, (ii) the Target Bonus multiplied by the
applicable Severance Multiple, and (iii) the Annual Employer Premiums multiplied by the applicable Severance Multiple (without regard to whether the Participant elects COBRA coverage), all of which will be paid to him or her in a lump sum
within 30 days following the Termination Date; and (b) immediate vesting of any outstanding equity or long-term incentive awards, with performance deemed to have been achieved at target performance levels for any performance-based awards. 

4.5    All Other Terminations of Employment. If, during the Protected Period, a Participant’s employment is
terminated by the Company with Cause or by the Participant without Good Reason, then his or her participation in this Plan will terminate without further obligation to the Participant, his or her family members, beneficiaries, or legal
representatives, other than the Accrued Obligations. 
 4.6    Set-Off;
Mitigation. Upon and after a Change of Control, the Company’s and its Affiliates’ obligations to make the payments provided for in this Plan and otherwise to perform their obligations under this Plan will not be affected by any set-off for compensation from new employment or otherwise, counterclaim, recoupment, defense or other claim, right or action which the Company or its Affiliates may have against the Participant or others. It is the
intent of this Plan that in no event will a Participant be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Participant under any of the provisions of this Plan. 

ARTICLE V 
 MISCELLANEOUS

 5.1    Successors. 

(a)    The Company will require that any successor to or assignee of (whether direct or indirect, by purchase, merger,
consolidation or otherwise) all or substantially all of its assets or businesses in writing (i) assume unconditionally and expressly this Plan and (ii) agree to perform or to cause to be performed all of the obligations under this Plan in
the same manner and to the same extent as would have been required of the Company had no assignment or succession occurred. 

(b)    The Company will also require all entities that control or that after the transaction will control (directly or
indirectly) the Company or any such successor or assignee to agree to cause to be performed all of the obligations under this Plan. 

5.2    Status as Unfunded Plan. This Plan is an unfunded plan. All payments pursuant to the Plan will be made from
the general funds of the Company and no special or separate fund will be established or other segregation of assets made to assure payment. No Participant or other Person has any interest in any particular property or assets of the Company as a
result of participating in the Plan. 

  
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 5.3    Plan Amendment or Termination. Subject to
Section 1.2, PHI reserves the right to amend or terminate this Plan at any time and without advance notice. Any amendment must be made in writing, executed by an officer of PHI, as authorized by the Committee. No benefits
will be paid to anyone whose employment is terminated after the Plan is terminated or amended to exclude that Participant. Notwithstanding the foregoing, no amendment or termination of the Plan may be made following a Change of Control unless
approved in writing by eighty percent (80%) of the Participants. 
 5.4    Severability. In the event any portion
of the Plan or any action taken pursuant to the Plan is held to be illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, and the Plan will be construed and enforced as if the illegal or
invalid provisions had not been included, and the illegal or invalid action will be null and void. 

5.5    Notices. All notices under this Plan must be in writing and will be deemed to have been given upon receipt
of delivery by: (a) hand (against a receipt for such delivery), (b) certified or registered mail, postage prepaid, return receipt requested, or (c) a nationally recognized overnight courier service (against a receipt for such service). All
notices to PHI related to this Plan should be sent to PHI’s principal business address. All notices to a Participant should be delivered to the most recent address as provided by such Participant to the human resources department of PHI. 

5.6    Governing Law. The Plan will be governed by the laws of the State of Louisiana to the extent not
preempted by ERISA. 
 5.7    Company’s Reservation of Rights. Each Participant is employed at the pleasure
of the Company and the Company has the right at any time to terminate the Participant’s status as an employee of the Company, to change or diminish his or her status during the Protected Period (subject to the rights of the Participant to claim
the benefits conferred by this Plan), and to add to or remove positions from the list of Participants set forth on Appendix B. Only employees of the Company who are listed on Appendix B at the time of a Change of Control will
be entitled to claim the benefits conferred on Participants by the Plan. 
 5.8    Withholding. The Company has
the right to withhold from any amount payable to a Participant under the Plan any federal, state, and local taxes that the Company is required to withhold from such Participant to satisfy any withholding tax obligations it may have under any
applicable law or regulation. 
 5.9    Code Section 409A. Notwithstanding any other provision
of this Plan: 
 (a)    This Plan is intended to comply with Code Section 409A and the payments and benefits
provided under this Plan are intended to either comply with, or be exempt from, Code Section 409A, and this Plan should be construed and interpreted accordingly. 

(b)    If, as of a Participant’s Termination Date, such Participant is a “specified employee” (as defined
and determined under Code Section 409A) and any payment or benefit 

  
 5 

 
provided to him or her in connection with his termination of employment constitutes “non-qualified deferred compensation” subject to Code
Section 409A, then the payments and benefits that may be paid to such Participant during the six-month period following the Termination Date will be limited to (i) medical benefits that are allowed
to be provided during such time pursuant to Code Section 409A, (ii) any amounts that qualify for the short-term deferral exception to Code Section 409A, (iii) any amounts that qualify for the involuntary separation from service
exception to Code Section 409A, and (iv) any other payments to the extent they are covered by an exception to such six-month delay applicable to specified employees. All other payments and benefits
will not be paid to such Participant until the first business day that is six months after the Termination Date or, if earlier, on his or her death. 

5.10    Code Section 280G. Notwithstanding any other provision of this Plan or any other plan,
arrangement, or agreement to the contrary, if any of the payments or benefits provided or to be provided by the Company or its Affiliates to or for the benefit of a given Participant pursuant to the terms of this Plan or otherwise (together, the
“Covered Payments”) constitute parachute payments within the meaning of Code Section 280G and would, but for this Section 5.10, be subject to Excise Tax, then prior to making the Covered Payments, a
calculation must be made comparing (a) the After-Tax Benefit to the affected Participant of the Covered Payments after payment of the Excise Tax to (b) the
After-Tax Benefit to such Participant if the Covered Payments are limited to the extent necessary to avoid being subject to the Excise Tax. Only if the amount calculated under (a) above is less than the
amount under (b) above will the Covered Payments be reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax. Any such reduction will be made by the Administrator in its sole
discretion consistent with the requirements of Code Section 409A. Any determinations required under this Section 5.10, including whether any payments or benefits are parachute payments, will be made by the
Administrator in its sole discretion. 
 ARTICLE VI 

CLAIMS FOR BENEFITS 

6.1    Claims Procedure. Claims for benefits may be made to the Administrator at the following address: 2001
SE Evangeline Thruway, Lafayette, Louisiana 70508, or such other address as the Administrator provides to Participants in writing in accordance with Section 5.5. Payments of the amounts provided in this Plan will ordinarily
be made without the need for demand at the discretion of the Company. Nevertheless, a Participant who claims entitlement to a benefit may file a written claim for benefits with the Administrator within 90 days after the Participant’s employment
is terminated. The Administrator will accept or reject the claim within 30 days of its receipt. If the claim is denied, the Administrator will give the reason for denial in a written notice in plain English so as to be understood by the claimant,
referring to the Plan provisions that provide the basis for the denial. If any additional information or material is necessary to perfect the claim, the Administrator will identify these items and explain why such additional material is necessary.

 6.2    Claim Denial and Appeal. Upon denial of a claim, the claimant may file a written request for review of
the denied claim to the Administrator within 60 days of the denial. The claimant will have the opportunity to be represented by counsel and may request to be heard at a hearing. The claimant will have the opportunity to review the pertinent
documents and the opportunity to submit written reasons opposing the denial. The decision upon the appeal will be made within 60 days of receipt of the requested review unless special circumstances (such as a

  
 6 

 
need to hold a hearing) require an extension of time for processing, in which case a decision will be made as soon as possible, but no later than 120 days after receipt of a request for review.
If such extension of time for review is required, because of special circumstances, written notice of the extension will be furnished to the claimant prior to the commencement of the extension. If the appeal is denied, the denial must be made in
writing. 

  
 7 

 PHI, Inc. has adopted this Retention Plan effective as of the Effective Date. 

 

			
	PHI, Inc.
		
	By:	 	/s/ C. Russell Luigs
		
		 	C. Russell Luigs
		 	 Chairman, Compensation Committee

of the Board of Directors

  
 8 

 Appendix A 

Definitions 

Unless otherwise defined in this Plan (including the preamble), the following terms (and capitalized variants of such terms) have the meanings
indicated, unless the context clearly indicates otherwise: 
 “Accrued Obligations” has the meaning provided in
Section 4.2. 
 “Administrator” has the meaning provided in
Section 1.1. 
 “Affiliate” means a Person that controls, or is controlled by, or is under common
control with, another specified Person, either directly or indirectly. 
 “Annual Employer Premiums” means, with respect to
a given Participant, the highest monthly value of the employer portion of all health and welfare benefit premiums paid by the Company and its Affiliates on behalf of such Participant at any time during the
120-day period immediately preceding the Termination Date, multiplied by 12. 
 “Base
Salary” has the meaning provided in Section 3.3. 
 “Bonus” has the meaning provided in
Section 3.4. 
 “Cause” means, with respect to a given Participant, any of the following: 

(a)    the willful and continued failure of the Participant to substantially perform his or her duties with the Company
(other than any such failure resulting from the Participant’s incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Participant by the Committee that (i) specifically
identifies the manner in which the Committee believes that the Participant has not substantially performed his or her duties and (ii) with respect to conduct that is susceptible of cure (as determined by the Committee in its sole discretion),
provides the Participant with a reasonable opportunity (but in no event more than 30 days) to cure; 
 (b)    the willful
engaging by the Participant in conduct which is demonstrably and materially injurious to the Company or its Affiliates, monetarily or otherwise; 

(c)    the Participant’s indictment for, conviction of, or guilty or no contest plea to, a felony or any crime
involving dishonesty; or 
 (d)    the Participant’s willful misappropriation of Company funds, or any other willful
act of personal dishonesty that is a material violation of the Company’s policies. 
 For purposes of this definition of “Cause,” no act or
failure to act, on the part of the Participant, will be considered “willful” unless it is done, or omitted to be done, by the Participant in bad faith or without reasonable belief that his or her action or omission was in the best
interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the board of directors of PHI or one of its committees will be conclusively presumed to be done, or omitted to be done, by the
Participant in good faith and in the best interests of the Company. 

  
 A-1 

 “Change of Control” means any of the following: 

(a)    a consolidation, merger, or similar transaction or series of related transactions, including, without limitation,
(i) a sale or other disposition of equity interests, in which PHI is not the surviving entity; or (ii) an event that results in the acquisition of all or substantially all of the equity interests in PHI by a Person or group of Persons
acting in concert who were not Affiliates of the Company as of the Effective Date; 
 (b)    a sale or transfer of all or
substantially all of the Company’s assets, in either case, taken as a whole, to a Person or group of Persons acting in concert who were not Affiliates of the Company as of the Effective Date; or 

(c)    a dissolution or liquidation of PHI; 

provided, in each case, that the transaction constitutes a “change in control event” for purposes of Code Section 409A. 

“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, including any regulations and guidance issued
under the applicable section. 
 “Committee” means the compensation committee of the board of directors of PHI, Inc. 

“Company” means the Company as defined in the preamble and any successor to or assignee of (whether direct or indirect, by
purchase, merger, consolidation or otherwise) all or substantially all of the assets or business of the Company. 
 “Covered
Payments” has the meaning provided in Section 5.10. 
 “Effective Date” has the meaning
provided in the preamble. 
 “ERISA” has the meaning provided in the preamble. 

“Excise Tax” means the excise tax imposed under Code Section 4999, any similar tax imposed by state or local law, and
any interest or penalties with respect to such taxes. 
 “Good Reason” means the existence of any of the following, without
the Participant’s written consent: 
 (a)    a material diminution in the Participant’s Base Salary or Target
Opportunity; 
 (b)    a material diminution in the Participant’s authority, duties, responsibilities, or reporting
relationship; 

  
 A-2 

 (c)    a change to the Participant’s primary work location
requiring the Participant to be based more than 50 miles from the location at which he or she provided services to the Company immediately prior to the Change of Control; or 

(d)    a material breach of the Agreement by the Company including, but not limited to, the failure of the Company or its
Affiliates to obtain the assumption of their obligations under this Agreement by any successor or assign as contemplated in Section 6.1. 

For purposes of this definition, a Participant’s termination will not be considered to have been with Good Reason unless (x) he or she provides
written notice to the Company of the condition constituting Good Reason within 90 days of the Participant having knowledge of its initial existence, (y) such condition remains uncured for at least 30 days following the Company’s receipt of
the Participant’s notice, and (z) the Participant actually terminates employment following the expiration of any cure period but within two years of the initial occurrence of such condition. 

“Net Benefit” means the present value of all Covered Payments to a given Participant, net of all federal, state, local,
foreign income, employment and Excise Tax. 
 “Participant” means an individual who has been designated to participate in
the Plan by the Administrator in accordance with Section 1.2. 
 “Person” means a natural person
or company, and also means the group or syndicate created when two or more Persons act as a syndicate or other group (including, without limitation, a partnership or limited partnership) for the purpose of acquiring, holding, or disposing of a
security, except that “Person” does not include an underwriter temporarily holding a security pursuant to an offering of the security. 

“PHI” means PHI as defined in the preamble and any successor to or assignee of (whether direct or indirect, by purchase,
merger, consolidation or otherwise) all or substantially all of the assets or business of PHI. 
 “Plan” has the meaning
provided in the preamble. 
 “Pro-Rata Bonus” means a Bonus for the fiscal year in
which a Change of Control and/or the Termination Date occurs, calculated as provided in the applicable annual or short-term incentive plan based on target performance, pro-rated for the portion of the fiscal
year between January 1 and, as applicable, the effective date of the Change of Control or the Termination Date. 
 “Protected
Period” means, for a given Participant, the period of time beginning on the effective date of a Change of Control and continuing for the number of full months specified on Appendix B. 

“Qualifying Termination” means the termination of a Participant’s employment (a) by the Company without Cause or
(b) by the Participant with Good Reason, in either case during the Protected Period or the thirty-day period prior to the occurrence of the Change of Control. 

“Severance Multiple” means, for a given Participant, the numerical value of his or her Protected Period as provided on
Appendix B, divided by 12. 

  
 A-3 

 “Target Bonus” means the target Bonus for which the Participant is eligible
for a given fiscal year, as established by the Company for such year, or, if no target Bonus has been established as of the applicable date, the Base Salary multiplied by the Target Opportunity. 

“Target Opportunity” has the meaning provided in Section 3.4. 

“Termination Date” means the date that the Participant has a “separation of service,” as such term is used in
Section 409A, regardless of the reason for termination of employment. 

  
 A-4 

 Appendix B 

Schedule of Participants 
  

					
	 Name
	    	 Title
	    	Protected
Period
    (Months)    
	 Al Gonsoulin
	    	 Chairman/CEO
	    	36
	 Lance Bospflug
	    	 President/COO
	    	36
	 Trudy McConnaughhay
	    	 CFO, Treasurer, Secretary
	    	24
	 James Hinch
	    	 CAO
	    	24
	 David Stepanek
	    	 President, Domestic Oil & Gas
	    	24

 [remainder of participants intentionally omitted] 

  
 B-1

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