Alabama Stock Option and Dividend Equivalent Plan with exhibits of UGI Corp.

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-305
• Format: Word; Rich Text

Description

18-305 18-305 . . . Stock Option and Dividend Equivalent Plan which provides for issuance of Non-qualified Stock Options and Dividend Equivalents. From date of grant of option until earlier of (a) end of period selected by Committee over which total return realizable by stockholder of corporation on a share of stock is compared to that realizable by stockholders of companies in a Comparison Group ("Performance Period") or (b) date of participant's disability, death or termination of employment, corporation shall keep records for such participant ("Account") and shall credit Account with an amount equal to Dividend Equivalent associated with such option. Committee will determine measurable criteria pursuant to which total return realizable by stockholder on share of stock over applicable Performance Period can be compared to that realizable over same Performance Period by stockholders of Comparison Group. Extent to which participant receives payment of Dividend Equivalents will be determined by comparing such total return realizable by stockholder of the corporation to that realizable by stockholders of Comparison Group

Title: Understanding Alabama Stock Option and Dividend Equivalent Plan of UGI Corp. Introduction: Alabama Stock Option and Dividend Equivalent Plan (ASIDE) is an employee benefit program offered by UGI Corp., a leading energy distribution and services company. This detailed description aims to provide insights into the ASIDE and its various types with exhibits of UGI Corp. Exhibit 1: Overview of UGI Corp.: UGI Corp. is a publicly traded company listed on the New York Stock Exchange (NYSE) under the ticker symbol "UGI." It operates in the energy distribution and services sector, primarily involved in propane, natural gas, and electricity distribution. UGI Corp. has a strong presence in the United States, Europe, and Asia, serving millions of customers worldwide. Exhibit 2: Alabama Stock Option and Dividend Equivalent Plan (ASIDE): ASIDE is an employee benefit program designed to provide eligible UGI Corp. employees with the opportunity to acquire company stock and receive dividend equivalents. This program serves as an incentive for attracting, retaining, and motivating talented employees, aligning their interests with the company's long-term success. Types of ASIDE: 1. Stock Option Plan: Under the UGI Corp. Stock Option Plan, eligible employees are granted the right to purchase a predetermined number of UGI Corp. shares at a specified price, known as the exercise price. This allows employees to profit from potential stock price appreciation if exercised at a later time. Exhibit 3: Illustration of Stock Option Plan: Employee A is granted 100 stock options with an exercise price of $50 per share. If the market price of UGI Corp. stock rises to $70 per share, Employee A can exercise their options and purchase 100 shares at the exercise price of $50 each, gaining a profit of $20 per share upon sale. 2. Dividend Equivalent Plan: The UGI Corp. Dividend Equivalent Plan provides eligible employees with the opportunity to earn cash payments equivalent to the dividends paid on UGI Corp. common stock. These cash payments are based on a predetermined formula linked to the dividend amount and the number of phantom shares held by the employees. Exhibit 4: Illustration of Dividend Equivalent Plan: Employee B is eligible for the Dividend Equivalent Plan and holds 500 phantom shares. If UGI Corp. declares a dividend of $2 per share, Employee B would receive a cash payment of $1,000 ($2 x 500 phantom shares) as an equivalent to the dividends. Note: ASIDE may have specific eligibility criteria, vesting periods, and other terms outlined in its official plan documents. Employees should refer to the plan documents and consult with UGI Corp.'s designated personnel for complete details. Conclusion: Alabama Stock Option and Dividend Equivalent Plan is a valuable employee benefit program offered by UGI Corp., stimulating employee engagement and aligning their interests with the company's performance. By providing stock options and dividend equivalents, UGI Corp. aims to foster a sense of ownership and reward employees for their contributions.