Nevada 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

Nevada Stock Option and Dividend Equivalent Plan: An Overview of UGI Corp. Introduction: Nevada Stock Option and Dividend Equivalent Plan is an employee benefit program offered by UGI Corp., a leading energy distribution and services company. This plan grants eligible employees the opportunity to acquire stock options and receive dividend equivalents, providing additional financial incentives and aligning their interests with the company's performance. Let's delve into the details of this plan and its key features. 1. Stock Options: Stock options are one of the core components of the Nevada Stock Option and Dividend Equivalent Plan. They offer employees the right to purchase UGI Corp. stocks at a predetermined price within a specified period. This allows employees to potentially benefit from the appreciation of UGI Corp.'s stock value over time. 2. Dividend Equivalents: Dividend equivalents are another attractive aspect of this plan. Eligible employees receive dividends on invested restricted stock units (RSS) or options, even before they are vested or exercised. Dividend equivalents effectively grant employees the economic value of dividends paid on UGI Corp. stocks without requiring the immediate ownership of the underlying shares. Different types of Nevada Stock Option and Dividend Equivalent Plans with exhibits of UGI Corp.: 1. Non-Qualified Stock Option Plan: This plan allows employees to purchase UGI Corp. stocks at a discounted price predetermined by the company. It offers flexibility in terms of vesting schedules and exercise periods, providing employees with the opportunity to acquire shares at a lower cost and potentially profit from their appreciation. Exhibit A: Sample Non-Qualified Stock Option Plan Terms: — Grant Date: January 1, 202— - Exercise Price: $50.00 per share — Vesting Schedule: 25% after one year, followed by quarterly vesting — Exercise Period: Five years from the grant date 2. Incentive Stock Option Plan: Designed to encourage long-term commitment and motivate key employees, the Incentive Stock Option Plan grants stock options that offer preferential tax treatment. This plan is subject to specific IRS rules and provides potential tax advantages if certain conditions are met. Exhibit B: Sample Incentive Stock Option Plan Terms: — Grant Date: January 1, 202— - Exercise Price: Equal to the fair market value at the grant date — Vesting Schedule: 20% after two years, followed by yearly vesting — Exercise Period: Ten years from the grant date 3. Restricted Stock Units Plan: UGI Corp. may also offer a Restricted Stock Units (RSU) plan as part of the Nevada Stock Option and Dividend Equivalent Plan. Under this plan, eligible employees are granted RSS, which represent the right to receive UGI Corp. stocks after a specific period, subject to certain performance or time-based conditions. Exhibit C: Sample Restricted Stock Units Plan Terms: — Grant Date: January 1, 202— - Vesting Schedule: 50% after two years based on employee performance — Delivery of Shares: Upon vesting, subject to regulatory requirements Conclusion: The Nevada Stock Option and Dividend Equivalent Plan by UGI Corp. provides employees with attractive incentives to invest in the company's success. Through stock options and dividend equivalents, employees have the opportunity to participate in UGI Corp.'s growth and align their interests with the shareholders'. Whether through non-qualified stock options, incentive stock options, or restricted stock units, UGI Corp. aims to reward employee dedication and motivate them to contribute to the company's long-term prosperity.