Delaware 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: Delaware Stock Option and Dividend Equivalent Plan: UGI Corp. Overview and Exhibits Introduction: In this article, we will provide a comprehensive description of the Delaware Stock Option and Dividend Equivalent Plan administered by UGI Corp. This plan allows participants to acquire company stock through options and receive dividend equivalents. We will explore the workings of this plan, its benefits, and different types, if applicable, of Delaware Stock Option and Dividend Equivalent Plans offered by UGI Corp. 1. Understanding the Delaware Stock Option and Dividend Equivalent Plan: The Delaware Stock Option and Dividend Equivalent Plan is a compensation program offered by UGI Corp., a global energy distribution company. The plan allows eligible employees, executives, and directors of UGI Corp. and its subsidiaries to receive stock options and dividends as part of their compensation package. 2. Benefits of the Delaware Stock Option and Dividend Equivalent Plan: — Stock Options: Participants are granted the right to purchase UGI Corp. stock at a predetermined price, referred to as the exercise price, within a specified period, known as the vesting period. This can provide an opportunity to benefit from potential stock price appreciation. — Dividend Equivalents: Participants may also be eligible to receive dividend equivalents. These equivalents mimic the cash dividends paid to shareholders and are usually credited to an account or invested in additional shares. They offer a potential source of additional income. 3. Exhibit A: UGI Corp. Delaware Stock Option and Dividend Equivalent Plan Structure: — Plan Eligibility: The plan may extend to employees, executives, and directors meeting specific criteria, such as length of service or job position. — Stock Option Grants: Eligible participants are granted stock options under the plan, typically subject to vesting requirements and exercise limitations. — Vesting Schedule: The plan outlines a vesting schedule governing the period during which stock options become exercisable. — Exercise Price: The exercise price is predetermined and set at the date of the stock option grant, often based on the fair market value of UGI Corp.'s stock. — Dividend Equivalent Accounts: Participants may have the option to open dividend equivalent accounts where dividend equivalents are accumulated. — Dividend Equivalent Payouts: The plan stipulates when and how dividend equivalents are paid out, typically upon certain triggering events, such as stock option exercise or vesting. 4. Exhibit B: Types of Delaware Stock Option and Dividend Equivalent Plans Offered by UGI Corp. (a) Regular Employee Stock Option Plan: This plan caters to eligible employees, granting them stock options alongside dividend equivalents. (b) Executive Stock Option Plan: Designed for key executives, this plan offers extended benefits, including higher stock option grants and additional dividend equivalents. © Director Stock Option Plan: Tailored for non-employee directors, this plan provides stock options and dividend equivalents as part of their compensation structure. Conclusion: The Delaware Stock Option and Dividend Equivalent Plan offered by UGI Corp. provides an attractive compensation opportunity, allowing eligible participants to acquire company stock through options and earn dividend equivalents. It benefits employees, executives, and directors alike, offering an additional incentive for their contributions. The different types of plans, such as the Regular Employee, Executive, and Director Stock Option Plans, cater to specific roles within UGI Corp., ensuring fair and rewarding compensation packages.