Indiana 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

Indiana Stock Option and Dividend Equivalent Plan (ISOLDE) is a comprehensive employee benefit program offered by UGI Corp., a leading energy company. This plan is aimed at rewarding and incentivizing employees by providing them with stock options and dividend equivalents. The ISOLDE is designed to align the interests of employees with shareholders and encourage long-term commitment and performance. The ISOLDE offers two primary components: stock options and dividend equivalents. Let's delve deeper into each of these components along with their exhibits provided by UGI Corp.: 1. Stock Options: Stock options grant employees the right to purchase UGI Corp. stock at a predetermined price within a specific timeframe. This allows employees to participate in the company's growth and enjoy potential capital appreciation. UGI Corp. offers employees various types of stock options, including: a. Non-Qualified Stock Options (NO): These options are typically granted to employees and do not qualify for special tax treatment. Nests offer flexibility in terms of exercise price, vesting schedule, and exercise timing. b. Incentive Stock Options (ISO): SOS are usually provided to key employees and may offer potential tax benefits. These options adhere to specific regulations outlined by the IRS and must be exercised within a certain timeframe. Exhibit 1: Sample Option Agreement — This exhibit provides a detailed agreement document outlining the terms and conditions of stock options granted to employees. 2. Dividend Equivalents: Dividend equivalents grant employees the right to receive cash payments equivalent to the dividends paid on UGI Corp. common stock. The amount awarded to employees depends on the company's dividend payouts and the number of shares held by employees. This component allows employees to benefit from the company's success without directly holding the stock. Exhibit 2: Dividend Equivalent Calculation Example — This exhibit illustrates the calculation methodology of dividend equivalents, showcasing how employees can earn dividends without owning UGI Corp. stock directly. UGI Corp. believes that the ISOLDE is crucial in attracting and retaining talented employees. It promotes a sense of ownership, aligns employee interests with those of shareholders, and fosters sustained performance and motivation within the company. Note: The exhibits provided are fictitious and should be replaced with actual exhibits from UGI Corp.