Vermont 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: Vermont Stock Option and Dividend Equivalent Plan of UGI Corp: A Comprehensive Overview Introduction: The Vermont Stock Option and Dividend Equivalent Plan is a key component of UGI Corp's compensation program. This comprehensive plan offers various types of incentives to eligible employees, enabling them to participate in the company's growth and success. In this article, we provide a detailed description of the plan, its benefits, and the different types of Vermont Stock Option and Dividend Equivalent Plans offered by UGI Corp. Key Features of the Vermont Stock Option and Dividend Equivalent Plan: 1. Stock Options: Stock options within the Vermont Plan allow employees to purchase UGI Corp's common stock at a predetermined price, known as the "strike price." These options typically have a vesting period, after which employees can exercise their right to buy company shares at the strike price. Stock options present an opportunity for employees to benefit from any increase in UGI Corp's stock value during the vesting period. 2. Dividend Equivalent Rights: Under the Vermont Plan, employees are eligible to receive dividend equivalent rights. These rights enable employees to receive cash payments equivalent to the dividends paid by UGI Corp on their vested stock options, even if they haven't exercised the options yet. Different Types of Vermont Stock Option and Dividend Equivalent Plans in UGI Corp: 1. Restricted Stock Units (RSS): UGI Corp may also offer restricted stock units as part of its Vermont Plan. RSS are granted to employees as compensation and represent a commitment to deliver a specific number of shares after a vesting period. Employees can convert vested RSS into UGI Corp's common stock at a predetermined ratio. 2. Performance Stock Units (Plus): Performance Stock Units are another type of stock option granted within the Vermont Plan. These units are tied to predefined performance goals, such as achieving specific financial targets or meeting operational objectives. The Plus are subject to performance conditions and vesting criteria, and employees may convert vested units into company stock based on meeting performance targets. Exhibits — UGI Corp Vermont Stock Option and Dividend Equivalent Plan: Exhibit 1: Summary of the Vermont Stock Option and Dividend Equivalent Plan: This exhibit provides an overview of the plan's key components, eligibility requirements, and general guidelines, including the stock option vesting period, exercise period, and dividend equivalent rights. Exhibit 2: Sample Stock Option Agreement: This exhibit features a sample agreement outlining the terms and conditions of the stock options granted to eligible employees, such as the number of options granted, the strike price, and the vesting schedule. Exhibit 3: Dividend Equivalent Calculation Example: This exhibit demonstrates a sample calculation of dividend equivalents based on UGI Corp's dividend payouts and the number of vested stock options held by an employee. Conclusion: The Vermont Stock Option and Dividend Equivalent Plan of UGI Corp provide employees with an attractive opportunity to share in the company's financial success. By offering stock options, dividend equivalent rights, RSS, and Plus, UGI Corp motivates employees, aligning their interests with the company's growth. This plan fosters a sense of ownership and dedication among employees while driving UGI Corp's long-term success.