Chicago Illinois Stock Option and Dividend Equivalent Plan with exhibits of UGI Corp.

• Category: Corporations - Public - Stock Options
• State: Multi-State
• City: Chicago
• 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

Chicago Illinois Stock Option and Dividend Equivalent Plan (SIDE) The Chicago Illinois Stock Option and Dividend Equivalent Plan (SIDE) is a comprehensive employee benefit program implemented by UGI Corp. in Chicago, Illinois. This plan offers employees the opportunity to participate in the company's growth and success through stock options and dividend equivalents. Stock Options: Stock options are a key component of the Chicago Illinois SIDE. These options grant employees the right to purchase a specific number of shares at a predetermined price, allowing them to benefit from any increase in UGI Corp.'s stock value. Employees receive stock options as part of their overall compensation package or as a reward for performance. Dividend Equivalents: The Chicago Illinois SIDE also includes dividend equivalents, providing employees with a unique method to participate in the dividends declared on UGI Corp.'s common stock. Dividend equivalents are payouts made to eligible participants upon declared dividends, even if they do not own actual shares of the company. This allows employees to receive benefits as if they were shareholders, further aligning their interests with the company's success. Benefits of SIDE: 1. Alignment of Interests: The SIDE benefits UGI Corp. by aligning employees' interests with the company's performance. As employees own stock options and receive dividend equivalents, they have a vested interest in enhancing the company's financial growth and profitability. 2. Motivation and Retention: The stock option component of SIDE can serve as a powerful motivational tool, encouraging employees to strive for higher performance and longevity with the company. The potential financial rewards associated with stock options can incentivize individuals to remain committed to UGI Corp. 3. Employee Ownership Culture: This plan fosters an employee ownership culture by giving employees a sense of ownership and accountability in the company's success. By participating in the stock market and receiving dividend equivalents, employees have a stake in UGI Corp.'s long-term growth. Different Types of Chicago Illinois Stock Option and Dividend Equivalent Plan: UGI Corp. may offer different types of stock options and dividend equivalents within the Chicago Illinois SIDE based on various factors, including employee levels, job titles, and specific performance-based criteria. The company may have plans tailored for executives, managerial positions, and other employee groups, each with its own eligibility requirements and benefit structures. Exhibits of UGI Corp.: 1. Exhibit 1: Chicago Illinois Stock Option Application Form: This exhibit showcases the application form used by UGI Corp. employees to apply for stock options under the SIDE. It outlines the terms, exercise price, and relevant information for employees to indicate their participation. 2. Exhibit 2: Dividend Equivalent Calculation Report: This exhibit provides an example of a dividend equivalent calculation report, demonstrating how employees' dividend equivalents are determined based on declared dividends and their participation level in the SIDE. 3. Exhibit 3: Stock Option Vesting Schedule: This exhibit illustrates the vesting schedule for stock options granted to UGI Corp. employees through the Chicago Illinois SIDE. It presents a timeline indicating when employees become eligible to exercise their options based on specific milestones or time-based criteria. In conclusion, the Chicago Illinois Stock Option and Dividend Equivalent Plan (SIDE) offered by UGI Corp. provides employees with the opportunity to own stock options and receive dividend equivalents, aligning their interests with the company's success. Through different types of stock options and dividend equivalents, UGI Corp. aims to foster an ownership culture, motivate employees, and retain talent. The accompanying exhibits showcase the stock option application form, dividend equivalent calculation report, and stock option vesting schedule.