Oklahoma 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 Oklahoma Stock Option and Dividend Equivalent Plan with Exhibits of UGI Corp. Introduction: Oklahoma Stock Option and Dividend Equivalent Plan plays a crucial role in the financial landscape of UGI Corp. This comprehensive program offers employees an opportunity to reap the benefits of the company's rising stock value as well as receive dividend equivalents. This article will delve into the different types of Oklahoma Stock Option and Dividend Equivalent Plans, providing a detailed description and exploring their significance for UGI Corp. employees. Types of Oklahoma Stock Option and Dividend Equivalent Plans: 1. Employee Stock Option Plan (ESOP): The UGI Corp. Employee Stock Option Plan allows employees to purchase company stocks at a predetermined price, referred to as the exercise price or strike price. This plan typically entails a vesting period, during which employees earn the right to exercise their stock options. Employees profit through the sale of shares when the stock value exceeds the exercise price, providing them with an incentive for long-term commitment and performance. Exhibit 1: UGI Corp. ESOP vesting schedule. 2. Non-Qualified Stock Option Plan: UGI Corp. also offers a Non-Qualified Stock Option Plan, available to selected employees. These stock options are subject to taxation upon exercise, based on the difference between the current market price and exercise price. This plan provides employees with flexibility and potential financial benefits, although it lacks certain tax advantages associated with qualified plans. Exhibit 2: UGI Corp. Non-Qualified Stock Option Plan tax implications. 3. Dividend Equivalent Plan: UGI Corp.'s Dividend Equivalent Plan aims to mimic the economic benefits of owning company shares, even for employees who do not directly own stock options. This plan offers participants a cash payment, equivalent to the dividends they would have received if they held the awarded stock options. Employees benefit from receiving compensation tied to UGI Corp.'s success, fostering a sense of ownership and commitment. Exhibit 3: UGI Corp. Dividend Equivalent Plan cash payment calculation. 4. Restricted Stock Unit Plan: The Restricted Stock Unit (RSU) Plan is another Oklahoma Stock Option and Dividend Equivalent Plan provided by UGI Corp. Under this plan, employees are granted units that represent company stock. These units typically vest over a specific period, after which employees receive the shares outright. RSS offer employees the opportunity to gain company stock without upfront financial obligations, aligning their interests with UGI Corp.'s long-term success. Exhibit 4: UGI Corp. Restricted Stock Unit Plan vesting schedule. Conclusion: The Oklahoma Stock Option and Dividend Equivalent Plans offered by UGI Corp. provide employees with various opportunities to participate in the company's financial growth and success. From the Employee Stock Option Plan to the Dividend Equivalent Plan and Restricted Stock Unit Plan, these programs aim to reward and motivate employees while aligning their interests with the company's performance. By implementing these plans, UGI Corp. establishes a culture of employee ownership, fostering loyalty and commitment within the organization.