Document:

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                                                                     EXHIBIT 4.7

          CATALYST SEMICONDUCTOR, INC. 2003 DIRECTOR STOCK OPTION PLAN

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                          CATALYST SEMICONDUCTOR, INC.

                         2003 DIRECTOR STOCK OPTION PLAN

      1.    Purpose of the Plan. The purpose of this 2003 Director Stock Option
Plan is to attract and retain highly qualified personnel to serve as Outside
Directors of the Company. This 2003 Director Stock Option Plan is the successor
to the Company's 1993 Director Stock Option Plan (the "Predecessor Plan").
Options granted under the Predecessor Plan shall be governed by the terms of the
Predecessor Plan.

            All options granted hereunder shall be "non-statutory stock
            options."

      2.    Definitions. As used herein, the following definitions shall apply:

            (a)   "Board" means the Board of Directors of the Company.

            (b)   "Code" means the Internal Revenue Code of 1986, as amended.

            (c)   "Common Stock" means the Common Stock of the Company.

            (d)   "Company" means Catalyst Semiconductor, Inc., a Delaware
corporation.

            (e)   "Continuous Status as a Director" means the absence of any
interruption or termination of service as a Director.

            (f)   "Director" means a member of the Board.

            (g)   "Employee" means any person, including officers and Directors,
employed by the Company or any Parent or Subsidiary of the Company. The payment
of a Director's fee by the Company shall not be sufficient in and of itself to
constitute "employment" by the Company.

            (h)   "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

            (i)   "Fair Market Value" means, as of any date, the value of Common
Stock determined as follows:

                  (i) If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the National
Market System of the National Association of Securities Dealers, Inc. Automated
Quotation ("NASDAQ") System, the Fair Market Value of a Share of Common Stock
shall be the closing sales price for such stock (or the closing bid, if no sales
were reported) as quoted on such system or exchange (or the exchange with the
greatest volume of trading in Common Stock) on the date of determination, or, if
not a market trading day, on the last market trading day prior to the date of
determination, as reported in The Wall Street Journal or such other source as
the Board deems reliable;

                  (ii) If the Common Stock is quoted on the NASDAQ System (but
not on the National Market System thereof) or regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of
a Share of Common Stock shall be the mean between the high bid and low asked
prices for the Common Stock on the date of determination, as reported in The
Wall Street Journal or such other source as the Board deems reliable; or

                  (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Board.

            (j)   "Option" means a stock option granted pursuant to the Plan.

            (k)   "Optioned Stock" means the Common Stock subject to an Option.

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            (l)   "Optionee" means an Outside Director who receives an Option.

            (m)   "Outside Director" means a Director who is not an Employee.

            (n)   "Parent" means a "parent corporation," whether now or
hereafter existing, as defined in Section 424(e) of the Code.

            (o)   "Plan" means this 2003 Director Stock Option Plan.

            (p)   "Share" means a share of the Common Stock, as adjusted in
accordance with Section 10 of the Plan.

            (q)   "Subsidiary" means a "subsidiary corporation," whether now or
hereafter existing, as defined in Section 424(f) of the Code.

      3. Stock Subject to the Plan. Subject to the provisions of Section 10 of
the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan equals the number of Shares subject to outstanding options under
the Predecessor Plan on the Effective Date and the number of Shares available
for additional grant under the Predecessor Plan on the Effective Date. The
Shares may be authorized but unissued, or reacquired Common Stock.

            If an Option (or an outstanding option under the Predecessor Plan on
the Effective Date) should expire or become unexercisable for any reason without
having been exercised in full, the unpurchased Shares which were subject thereto
shall, unless the Plan shall have been terminated, become available for future
grant under the Plan.

      4. Administration of and Grants of Options under the Plan.

            (a)   Administrator. Except as otherwise required herein, the Plan
shall be administered by the Board.

            (b)   Procedure for Grants. All grants of Options hereunder shall be
automatic and non-discretionary and shall be made strictly in accordance with
the following provisions:

                  (i) No person shall have any discretion to select which
Outside Directors shall be granted Options or to determine the number of Shares
to be covered by Options granted to Outside Directors.

                  (ii) Each new Outside Director who shall first become an
Outside Director on or after the Plan's Effective Date shall automatically be
granted an Option to purchase 30,000 Shares upon the date on which such person
first becomes an Outside Director, whether through election by the stockholders
of the Company or appointment by the Board to fill a vacancy (a "One-Time
Grant"). In addition, on each May 1 during the term of this Plan, each Outside
Director who shall have been an Outside Director for at least six (6) months as
of such date shall automatically receive an Option to purchase 15,000 Shares (an
"Annual Grant").

                  (iii) The terms of each Option granted hereunder shall be as
follows:

                        (A)   the term of the Option shall be ten (10) years;

                        (B)   the Option shall be exercisable only while the
Outside Director remains a Director of the Company, except as set forth in
Section 8 hereof;

                        (C)   the exercise price per Share shall be 100% of the
Fair Market Value per Share on the date of grant of the Option;

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                        (D)   each Annual Grant and One-Time Grant shall be
fully vested and exercisable upon the date of grant of the Option.

                  (iv) In the event that any Option granted under the Plan would
cause the number of Shares subject to outstanding Options plus the number of
Shares previously purchased upon exercise of Options to exceed the Pool, then
each such automatic grant shall be for that number of Shares determined by
dividing the total number of Shares remaining available for grant by the number
of Outside Directors entitled to receive Options on the grant date. No further
grants shall be made until such time, if any, as additional Shares become
available for grant under the Plan through action of the shareholders to
increase the number of Shares which may be issued under the Plan or through
cancellation or expiration of Options previously granted hereunder.

            (c) Powers of the Board. Subject to the provisions and restrictions
of the Plan, the Board shall have the authority, in its discretion: (i) to
determine, upon review of relevant information and in accordance with Section
2(i) of the Plan, the Fair Market Value of the Common Stock; (ii) to interpret
the Plan; (iii) to prescribe, amend and rescind rules and regulations relating
to the Plan; (iv) to authorize any person to execute on behalf of the Company
any instrument required to effectuate the grant of an Option previously granted
hereunder; and (v) to make all other determinations deemed necessary or
advisable for the administration of the Plan.

            (d) Effect of Board's Decision. All decisions, determinations and
interpretations of the Board shall be final.

      5. Eligibility. Options may be granted only to Outside Directors. All
Options shall be automatically granted in accordance with the terms set forth in
Section 4(b) hereof. An Outside Director who has been granted an Option may, if
he or she is otherwise eligible, be granted an additional Option or Options in
accordance with such provisions.

            The Plan shall not confer upon any Optionee any right with respect
to continuation of service as a Director or nomination to serve as a Director,
nor shall it interfere in any way with any rights which the Director or the
Company may have to terminate his or her directorship at any time.

      6. Term of Plan. The Plan shall become effective upon the later of (a) the
approval of the Plan by the stockholders of the Company, or (b) the termination
of the Predecessor Plan (the "Effective Date"). It shall continue in effect for
ten years from the date of its adoption by the Board, unless sooner terminated
under Section 11 of the Plan.

      7. Consideration. The consideration to be paid for the Shares to be issued
upon exercise of an Option, including the method of payment, shall be determined
by the Board and may consist entirely of, to the extent allowable under
applicable law, (i) cash, (ii) check, (iii) other shares which have a Fair
Market Value on the date of surrender equal to the aggregate exercise price of
the Shares as to which said Option shall be exercised and which, in the case of
Shares acquired upon exercise of an option, have been owned by the Optionee for
more than 12 months on the date of surrender, (iv) delivery of a properly
executed exercise notice together with irrevocable instructions to a broker to
promptly deliver to the Company the amount of sale or loan proceeds required to
pay the exercise price, (v) any combination of the foregoing methods of payment,
or (vi) such other consideration and method of payment for the issuance of
Shares to the extent permitted under applicable law.

      8. Exercise of Option.

            (a) Procedure for Exercise; Rights as a Stockholder. Any Option
granted hereunder shall be exercisable at such times as are set forth in Section
4(b) hereof.

            An Option may not be exercised for a fraction of a Share.

            An Option shall be deemed to be exercised when written notice of
such exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company. Full

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payment may consist of any consideration and method of payment allowable under
Section 7 of the Plan. Until the issuance (as evidenced by the appropriate entry
on the books of the Company or of a duly authorized transfer agent of the
Company) of the stock certificate evidencing such Shares, no right to vote or
receive dividends or any other rights as a stockholder shall exist with respect
to the Optioned Stock, notwithstanding the exercise of the Option. A share
certificate for the number of Shares so acquired shall be issued to the Optionee
as soon as practicable after exercise of the Option. No adjustment will be made
for a dividend or other right for which the record date is prior to the date the
stock certificate is issued, except as provided in Section 10 of the Plan.

            Exercise of an Option in any manner shall result in a decrease in
the number of Shares which thereafter may be available, both for purposes of the
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

            (b) Termination of Continuous Status as a Director. In the event an
Optionee's Continuous Status as a Director terminates (other than upon the
Optionee's death or total and permanent disability (as defined in Section
22(e)(3) of the Code)), the Optionee may exercise his or her Option, but only
within 90 days from the date of such termination, and only to the extent that
the Optionee was entitled to exercise it at the date of such termination (but in
no event later than the expiration of its ten-year term). To the extent that the
Optionee was not entitled to exercise an Option at the date of such termination,
and to the extent that the Optionee does not exercise such Option (to the extent
otherwise so entitled) within the time specified herein, the Option shall
terminate.

            (c) Disability of Optionee. In the event Optionee's Continuous
Status as a Director terminates as a result of total and permanent disability
(as defined in Section 22(e)(3) of the Code), the Optionee may exercise his or
her Option, but only within six months from the date of such termination, and
only to the extent that the Optionee was entitled to exercise it at the date of
such termination (but in no event later than the expiration of its ten-year
term). To the extent that the Optionee was not entitled to exercise an Option at
the date of termination, or if he or she does not exercise such Option (to the
extent otherwise so entitled) within the time specified herein, the Option shall
terminate.

            (d) Death of Optionee. In the event of an Optionee's death while a
Director, the Optionee's estate or a person who acquired the right to exercise
the Option by bequest or inheritance may exercise the Option, but only within
one year following the date of death, and only to the extent that the Optionee
was entitled to exercise it at the date of death (but in no event later than the
expiration of its ten-year term). To the extent that the Optionee was not
entitled to exercise an Option at the date of death, and to the extent that the
Optionee's estate or a person who acquired the right to exercise such Option
does not exercise such Option (to the extent otherwise so entitled) within the
time specified herein, the Option shall terminate.

      9. Non-Transferability of Options. The Option may not be sold, pledged,
assigned, hypothecated, transferred or disposed of in any manner other than by
will, by the laws of descent or distribution or pursuant to a qualified domestic
relations order, and may be exercised, during the lifetime of the Optionee, only
by the Optionee or a permitted transferee.

      10. Adjustments.

            (a) Changes in Capitalization. In the event that the stock of the
Company is changed by reason of any stock split, reverse stock split,
recapitalization, or other change in the capital structure of the Company, or
converted into or exchanged for other securities as a result of any merger,
consolidation or reorganization, or in the event that the outstanding number of
shares of stock of the Company is increased through payment of a stock dividend,
appropriate proportionate adjustments shall be made in the number and class of
shares of stock subject to the Plan, the number and class of shares subject to
any Option outstanding under the Plan, and the exercise price of any such
outstanding Option; provided, however, that the Company shall not be required to
issue fractional shares as a result of any such adjustment. Any such adjustment
shall be made upon approval by the Board, whose determination shall be
conclusive. If there is any other change in the number or type of the
outstanding shares of stock of the Company, or of any other security into which
such stock shall have been changed or for which it shall have been exchanged,
and if the Board in its sole discretion determines that such change equitably
requires an adjustment in the Options then outstanding under the Plan, such
adjustment shall be made in accordance with the

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determination of the Board. No adjustments shall be required by reason of the
issuance or sale by the Company for cash or other consideration of additional
shares of its stock or securities convertible into or exchangeable for shares of
its stock.

            (b) Change in Control. In the event of a "Change in Control" of the
Company, as defined in paragraph (c) below, then the following provisions shall
apply:

                  (i) Any Option outstanding on the date of such Change in
Control ("Outstanding Option") shall be assumed by the successor corporation (if
any) or by a Parent or Subsidiary of the successor corporation (if any);

                  (ii) Each Outstanding Option shall remain exercisable by the
Optionee for a period of at least three (3) years from the date of the Change in
Control (but in no event beyond the term of the Option); and

                  (iii) Each Optionee with an Outstanding Option shall be
provided with written notice of the period of exercisability provided for in
subsection (b)(iii) above promptly after the date of the Change in Control by
the Company or by the entity surviving after the Change in Control.

            (c) Definition of "Change in Control". For purposes of this Section
10, a "Change in Control" means the happening of any of the following:

                  (i) when any "person," as such term is used in Sections 13(d)
and 14(d) of the Exchange Act (other than the Company, a Subsidiary or a Company
employee benefit plan, including any trustee of such plan acting as trustee), is
or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Company representing more
than fifty (50%) of the combined voting power of the Company's then outstanding
securities entitled to vote generally in the election of directors; or

                  (ii) a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) at least fifty percent (50%) of
the total voting power represented by the voting securities of the Company or
such surviving entity outstanding immediately after such merger or
consolidation; or

                  (iii) the stockholders of the Company approve an agreement for
the sale or disposition by the Company of all or substantially all the Company's
assets; or

                  (iv) a change in the composition of the Board occurring as a
result of any one meeting of the stockholders of the Company, as a result of
which fewer than a majority of the directors are Incumbent Directors. "Incumbent
Directors" shall mean directors who either are (A) directors of the Company as
of the date the Plan is approved by the stockholders, or (B) elected, or
nominated for election, to the Board of Directors of the Company with the
affirmative votes of at least a majority of the Incumbent Directors at the time
of such election or nomination (but shall not include an individual whose
election or nomination is in connection with an actual or threatened proxy
contest relating to the election of directors to the Company).

      11.   Amendment and Termination of the Plan.

            (a) Amendment and Termination. The Board may at any time amend,
alter, suspend or discontinue the Plan, but no amendment, alteration, suspension
or discontinuation shall be made which would impair the rights of any Optionee
under any grant theretofore made, without his or her consent. In addition, to
the extent necessary and desirable to comply with applicable law or regulation,
the Company shall obtain stockholder approval of any Plan amendment in such a
manner and to such a degree as required.

            (b) Effect of Amendment or Termination. Any such amendment or
termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated.

<PAGE>

         12. Time of Granting Options. The date of grant of an Option shall, for
all purposes, be the date determined in accordance with Section 4(b) hereof.
Notice of the determination shall be given to each Outside Director to whom an
Option is so granted within a reasonable time after the date of such grant.

         13. Conditions Upon Issuance of Shares. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, state securities laws and the requirements of any stock exchange or
market system upon which the Shares may then be listed, and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

                  As a condition to the exercise of an Option, the Company may
require the person exercising such Option to represent and warrant at the time
of any such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares, if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned relevant provisions of law.

                  Inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company's
counsel to be necessary to the lawful issuance and sale of any Shares hereunder,
shall relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such requisite authority shall not have been
obtained.

      14. Reservation of Shares. The Company, during the term of this Plan, will
at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

      15. Option Agreement. Options shall be evidenced by written option
agreements in such form as the Board shall approve.<PAGE>
                                                                   Exhibit 10.38

                                 UGI CORPORATION

                      2002 NON-QUALIFIED STOCK OPTION PLAN
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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section Number                                                                                               Page
<S>      <C>                                                                                                 <C>
1.       Purpose and Design............................................................................        1
2.       Definitions...................................................................................        1
3.       Maximum Number of Shares Available for Options................................................        2
4.       Duration of the Plan..........................................................................        3
5.       Administration................................................................................        3
6.       Eligibility...................................................................................        3
7.       Options.......................................................................................        3
8.       Non-Transferability...........................................................................        6
9.       Consequences of a Change of Control...........................................................        6
10.      Adjustment of Number and Price of Shares, Etc.................................................        7
11.      Limitation of Rights..........................................................................        7
12.      Amendment or Termination of Plan..............................................................        7
13.      Tax Withholding...............................................................................        8
14.      Governmental Approval.........................................................................        8
15.      Effective Date of Plan........................................................................        8
16.      Successors....................................................................................        8
17.      Headings and Captions.........................................................................        8
18.      Governing Law.................................................................................        8
</TABLE>

                                      (i)
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                                 UGI CORPORATION

                      2002 NON-QUALIFIED STOCK OPTION PLAN

1.    PURPOSE AND DESIGN

      The purpose of this Plan is to assist the Company in securing, motivating
and retaining managerial talent by affording managers and other key Employees an
opportunity to purchase the Company's Stock under options.

2.    DEFINITIONS

      Whenever used in this Plan, the following terms will have the respective
meanings set forth below:

            2.01"Board" means UGI's Board of Directors as constituted from time
to time.

            2.02"Change of Control" means a change of control as defined in a
change of control agreement between a Participant's respective employer and
certain of its employees.

            2.03"Committee" means the Compensation and Management Development
Committee of the Board or its successor.

            2.04"Company" means UGI Corporation, a Pennsylvania corporation, any
successor thereto and any Subsidiary.

            2.05"Date of Grant" means the effective date of an Option or
Restricted Stock grant; provided, however, that no retroactive grants will be
made.

            2.06"Employee" means a regular full-time salaried employee
(including officers and directors who are also employees) of the Company.

            2.07"Fair Market Value" of Stock means the average, rounded to the
next highest cent ($0.01), of the highest and lowest sales prices thereof on the
New York Stock Exchange on the day on which Fair Market Value is being
determined, as reported on the Composite Tape for transactions on the New York
Stock Exchange. Notwithstanding the foregoing, in the case of a cashless
exercise pursuant to Section 7.4, the Fair Market Value will be the actual sale
price of the shares issued upon exercise of the Option. In the event that there
are no Stock transactions on the New York Stock Exchange on such day, the Fair
Market Value will be determined as of the immediately preceding day on which
there were Stock transactions on that exchange.

                                       1
<PAGE>
            2.08"Option" means the right to purchase Stock pursuant to the
relevant provisions of this Plan at the Option Price for a specified period of
time, not to exceed ten years from the Date of Grant, which period of time will
be subject to earlier termination prior to exercise in accordance with Section
7.3(b) of this Plan.

            2.09"Option Price" means an amount per share of Stock purchasable
under an Option designated by the Committee on the Date of Grant of an Option to
be payable upon exercise of such Option. The Option Price will not be less than
100% of the Fair Market Value of the Stock determined on the Date of Grant.

            2.10"Participant" means an Employee designated by the Committee to
participate in the Plan.

            2.11"Plan" means this 2002 Non-Qualified Stock Option Plan.

            2.12"Stock" means the Common Stock of UGI or such other securities
of UGI as may be substituted for Stock or such other securities pursuant to
Section 13.

            2.13"Subsidiary" means any corporation or partnership, at least 20%
of the outstanding voting stock, voting power or partnership interest of which
is owned respectively, directly or indirectly, by the Company.

            2.14"Termination without Cause" means termination for the
convenience of the Company for any reason other than (i) misappropriation of
funds, (ii) habitual insobriety or substance abuse, (iii) conviction of a crime
involving moral turpitude, or (iv) gross negligence in the performance of
duties, which gross negligence has had a material adverse effect on the
business, operations, assets, properties or financial condition of the Company.
The Committee will have the sole discretion to determine whether a significant
reduction in the duties and responsibilities of a Participant will constitute a
Termination without Cause.

            2.15"UGI" means UGI Corporation, a Pennsylvania corporation or any
successor thereto.

3.    MAXIMUM NUMBER OF SHARES AVAILABLE FOR OPTIONS

      The number of shares of Stock which may be made the subject of Options
under this Plan may not exceed 500,000 in the aggregate, subject, however, to
the adjustment provisions of Section 13. If any Option expires or terminates for
any reason without having been exercised in full, the unpurchased shares subject
to the Option will again be available for the purposes of the Plan. Shares which
are the subject of Options may be previously issued and outstanding shares of
Stock reacquired by the Company and held in its treasury, or may be authorized
but unissued shares of Stock, or may be a combination of both.

                                       2
<PAGE>
4.    DURATION OF THE PLAN

      The Plan will remain in effect until all Stock subject to it has been
transferred to Participants or all Options have terminated or been exercised.
Notwithstanding the foregoing, no Option may be granted after December 31, 2011.

5.    ADMINISTRATION

      The Plan will be administered by the Committee. Subject to the express
provisions of the Plan, the Committee will have authority, in its complete
discretion, to determine the Employees to whom, and the time or times at which
grants will be made. In making such determinations, the Committee may take into
account the nature of the services rendered by an Employee, the present and
potential contributions of the Employee to the Company's success and such other
factors as the Committee in its discretion deems relevant. Awards under a
particular Section of the Plan need not be uniform as among Participants.
Subject to the express provisions of the Plan, the Committee will also have
authority to construe and interpret the Plan, to prescribe, amend and rescind
rules and regulations relating to it, to determine the terms and provisions of
the respective stock option agreements required by Section 7.2 of the Plan, and
to make all other determinations (including factual determinations) necessary or
advisable for the orderly administration of the Plan. All ministerial functions,
in addition to those specifically delegated elsewhere in the Plan, shall be
performed by a committee comprised of Company employees ("Administrative
Committee") appointed by the Committee. A stock option agreement, as discussed
below, shall be executed by each Participant receiving a grant under the Plan
and shall constitute that Participant's acknowledgement and acceptance of the
terms of the Plan and the Committee's authority and discretion.

6.    ELIGIBILITY

      Grants hereunder may be made only to managers and key Employees, other
than executive officers, as defined in the Securities Exchange Act of 1934, as
amended, of UGI Corporation, who are selected by the Committee, in its sole
discretion, to participate in the Plan.

7.    OPTIONS

      7.1 Grant of Options. Subject to the provisions of Sections 2.9 and 3: (i)
Options may be granted to Participants at any time and from time to time as may
be determined by the Committee; and (ii) the Committee will have complete
discretion in determining the Options to be granted, the number of shares of
Stock to be subject to each Option, the Option Price to be paid for the shares
upon the exercise of each Option, the period within which each Option may be
exercised, and the vesting schedule associated with the Option.

      7.2 Option Agreement. As determined by the Committee on the Date of Grant,
each Option will be evidenced by a stock option agreement that will, among other
things, specify the Date of Grant, the Option Price, the duration of the Option,
the number of shares of Stock to which the Option pertains and the Option's
vesting schedule.

                                       3
<PAGE>
7.3   Exercise and Vesting.

            (a) Except as otherwise specified by the Committee in the stock
option agreement, the Option shall become exercisable in equal one-third (1/3)
installments on the first, second and third anniversaries of the Date of Grant.
Notwithstanding the foregoing, in the event that any such Options are not by
their terms immediately exercisable, the Committee may accelerate the
exercisability of any or all outstanding Options at any time for any reason. No
Option will be exercisable on or after the tenth anniversary of the Date of
Grant.

            (b) Except as otherwise specified by the Committee, in the event
that a Participant holding an Option ceases to be an Employee, the Options held
by such Participant will terminate on the date such Participant ceases to be an
Employee. The Committee will have authority to determine whether an authorized
leave of absence or absence on military or governmental service will constitute
a termination of employment for the purposes of this Plan. However, if a
Participant holding an Option ceases to be an Employee by reason of (i)
Termination without Cause, (ii) retirement, (iii) disability, or (iv) death, the
Option held by any such Participant will thereafter become exercisable pursuant
to the following:

            (i) Termination Without Cause. If a Participant terminates
employment on account of a Termination without Cause, the Option held by such
Participant will thereafter be exercisable only with respect to that number of
shares of Stock with respect to which it is already exercisable on the date such
Participant ceases to be an Employee; and such Option will terminate upon the
earlier of the expiration date of the Option or the expiration of the 13 month
period commencing on the date such Participant ceases to be an Employee.

            (ii) Retirement. If a Participant terminates employment on account
of a retirement under the Company's retirement plan applicable to that
Participant, the Option held by such Participant will thereafter become
exercisable as if such Participant had remained employed by the Company for 36
months after the date of such retirement; and such Option will terminate upon
the earlier of the expiration date of the Option or the expiration of such 36
month period. Retirement for Employees of AmeriGas Propane, Inc. ("API") means
termination of employment with API after attaining age 55 with ten or more years
of service with API and its affiliates.

            (iii) Disability. If a Participant is determined to be "disabled"
(as defined under the Company's long-term disability plan), the Option held by
such Participant will thereafter become exercisable as if such Participant had
remained employed by the Company for 36 months after the date of such
disability; and such Option will terminate upon the earlier of the expiration
date of the Option or the expiration of such 36 month period.

            (iv) Death. In the event of the death of a Participant while
employed by the Company, the Option theretofore granted to such Participant will
be fully and immediately exercisable (to the extent not otherwise exercisable by
its terms) at any time prior to the earlier of the expiration date of the Option
or the expiration of the 12 month period following the Participant's death.
Death of a Participant after such Participant has ceased to be employed by the

                                       4
<PAGE>
Company will not affect the otherwise applicable period for exercise of the
Option determined pursuant to Sections 7.3(b)(i), 7.3(b)(ii) or 7.3(b)(iii).
Such Option may be exercised by the estate of the Participant, by any person to
whom the Participant may have bequeathed the Option, any person the Participant
may have designated to exercise the same under the Participant's last will, or
by the Participant's personal representatives if the Participant has died
intestate.

            (c) Notwithstanding anything contained in this Section 7.3, with
respect to the number of shares of Stock subject to an Option with respect to
which such Option is or is to become exercisable, no Option, to the extent that
it has not previously been exercised, will be exercisable after it has
terminated, including without limitation, after any termination of such Option
pursuant to Section 7.3(b) hereof.

      7.4 Payment. The Option Price of any Option will be payable to the Company
in full (i) in cash or its equivalent, (ii) by tendering shares of previously
acquired Stock already beneficially owned by the Participant for more than one
year and having a Fair Market Value at the time of exercise equal to the Option
Price being paid thereby, (iii) by payment through a broker in accordance with
procedures permitted by Regulation T of the Federal Reserve Board, (iv) by such
other method as the Committee may approve, or (v) by a combination of (i), (ii),
(iii) and/or (iv). The cash proceeds from such payment will be added to the
general funds of the Company and will be used for its general corporate
purposes.

      7.5 Written Notice. A Participant wishing to irrevocably exercise an
Option must give irrevocable written notice to the Company in the form and
manner prescribed by the Administrative Committee, indicating the date of award,
the number of shares as to which the Option is being exercised, and such other
information as may be required by the Administrative Committee. Full payment for
the shares pursuant to the option must be received by the time specified by the
Committee depending on the type of payment being made but, in all cases, prior
to the issuance of the shares. Except as provided in Section 7.3(b), no Option
may be exercised at any time unless the Participant is then an Employee of the
Company.

      7.6 Issuance of Stock. As soon as practicable after the receipt of
irrevocable written notice and payment, the Company will, without stock transfer
taxes to the Participant or to any other person entitled to exercise an Option
pursuant to this Plan, deliver to, or credit electronically on behalf of, the
Participant, the Participant's designee or such other person the requisite
number of shares of Stock.

      7.7 Privileges of a Shareholder. A Participant or any other person
entitled to exercise an Option under this Plan will have no rights as a
shareholder with respect to any Stock covered by the Option until the due
exercise of the Option and issuance of such Stock.

      7.8 Partial Exercise. An Option granted under this Plan may be exercised
as to any lesser number of shares than the full amount for which it could be
exercised. Such a partial exercise of an Option will not affect the right to
exercise the Option from time to time in accordance with this Plan as to the
remaining shares subject to the Option.

                                       5
<PAGE>
8.    NON-TRANSFERABILITY

      No Option granted under the Plan will be transferable otherwise than by
will or the laws of descent and distribution, and an Option may be exercised,
during the lifetime of the Participant, only by the Participant.

9.    CONSEQUENCES OF A CHANGE OF CONTROL

      9.1 Notice and Acceleration. Upon a Change of Control, unless the
Committee determines otherwise, (i) the Company will provide each Participant
with outstanding grants written notice of such Change of Control, and (ii) all
outstanding Options will automatically accelerate and become fully exercisable.

      9.2 Assumption of Grants. Upon a Change of Control where the Company is
not the surviving corporation (or survives only as a subsidiary of another
corporation), unless the Committee determines otherwise, all outstanding Options
that are not exercised will be assumed by, or replaced with comparable options
or rights by, the surviving corporation (or a parent of the surviving
corporation).

      9.3 Other Alternatives. Notwithstanding the foregoing, subject to Section
9.4 below, in the event of a Change of Control, the Committee may take any of
the following actions with respect to any or all outstanding Options: the
Committee may (i) require that Participants surrender their outstanding Options
in exchange for a payment by the Company, in cash or Stock as determined by the
Committee, in an amount equal to the amount by which the then Fair Market Value
of the shares of Stock subject to the Participant's unexercised Options exceeds
the Option Price of the Options, as applicable, or (ii) after giving
Participants an opportunity to exercise their outstanding Options, terminate any
or all unexercised Options at such time as the Committee deems appropriate. Such
surrender, termination or settlement will take place as of the date of the
Change of Control or such other date as the Committee may specify.

      9.4 Committee. The Committee making the determinations under this Section
9 following a Change of Control must be comprised of the same members as those
on the Committee immediately before the Change of Control. If the Committee
members do not meet this requirement, the automatic provisions of Sections 9.1
and 9.2 will apply, and the Committee will not have discretion to vary them.

      9.5 Limitations. Notwithstanding anything in the Plan to the contrary, in
the event of a Change of Control, the Committee will not have the right to take
any actions described in the Plan (including without limitation actions
described in this Section 9) that would make the Change of Control ineligible
for pooling of interests accounting treatment or that would make the Change of
Control ineligible for desired accounting treatment if, in the absence of such
right, the Change of Control would qualify for such treatment and the Company
intends to use such treatment with respect to the Change of Control.

                                       6
<PAGE>
10.   ADJUSTMENT OF NUMBER AND PRICE OF SHARES, ETC.

      Notwithstanding anything to the contrary in this Plan, in the event any
recapitalization, reorganization, merger, consolidation, spin-off, combination,
repurchase, exchange of shares or other securities of UGI, stock split or
reverse split, extraordinary dividend, liquidation, dissolution, significant
corporate transaction (whether relating to assets or stock) involving UGI, or
other extraordinary transaction or event affects Stock such that an adjustment
is determined by the Committee to be appropriate in order to prevent dilution or
enlargement of Participants' rights under the Plan, then the Committee may, in a
manner that is equitable, adjust (i) any or all of the number or kind of shares
of Stock reserved for issuance under the Plan, (ii) the maximum number of shares
of Stock which may be the subject of grants to any one individual in any
calendar year, (iii) the number or kind of shares of Stock to be subject to
grants of Options thereafter granted under the Plan, (iv) the number and kind of
shares of Stock issuable upon exercise of outstanding Options, and (v) the
Option Price per share thereof, provided that the number of shares subject to
any Option will always be a whole number. Any such determination of adjustments
by the Committee will be conclusive for all purposes of the Plan and of each
Option, whether a stock option agreement with respect to a particular Option has
been theretofore or is thereafter executed.

11.   LIMITATION OF RIGHTS

      Nothing contained in this Plan shall be construed to give an Employee any
right to be granted an Option hereunder except as may be authorized in the
discretion of the Committee. The granting of an Option under this Plan shall not
constitute or be evidence of any agreement or understanding, expressed or
implied, that the Company will employ a Participant for any specified period of
time, in any specific position or at any particular rate of remuneration.

12.   AMENDMENT OR TERMINATION OF PLAN

      Subject to Board approval, the Committee may at any time, and from time to
time, alter, amend, suspend or terminate this Plan without the consent of the
Company's shareholders or Participants, except that any such alteration,
amendment, suspension or termination will be subject to the approval of the
Company's shareholders within one year after such Committee and Board action if
such shareholder approval is required by any federal or state law or regulation
or the rules of any stock exchange or automated quotation system on which the
Stock is then listed or quoted, or if the Committee in its discretion determines
that obtaining such shareholder approval is for any reason advisable. No
termination or amendment of this Plan may, without the consent of the
Participant to whom any Option has previously been granted, adversely affect the
rights of such Participant under such Option. Notwithstanding the foregoing, the
Administrative Committee may make minor amendments to this Plan which do not
materially affect the rights of Participants or significantly increase the cost
to the Company.

                                       7
<PAGE>
13.   TAX WITHHOLDING

      Upon exercise of any Option under this Plan, the Company will require the
recipient of the Stock to remit to the Company an amount sufficient to satisfy
federal, state and local withholding tax requirements. However, to the extent
authorized by rules and regulations of the Administrative Committee, the Company
may withhold or receive Stock and make cash payments in respect thereof in
satisfaction of a recipient's tax obligations in an amount that does not exceed
the recipient's minimum applicable withholding tax obligations. In the event the
Company receives Stock in satisfaction of a recipient's minimum applicable
withholding tax obligations, the Stock must have been held by the recipient for
more than six months.

14.   GOVERNMENTAL APPROVAL

            Each Option will be subject to the requirement that if at any time
the listing, registration or qualification of the shares covered thereby upon
any securities exchange, or under any state or federal law, or the consent or
approval of any governmental regulatory body, is necessary or desirable as a
condition of or in connection with the granting of such Option or the purchase
of shares thereunder, no such Option may be exercised in whole or in part unless
and until such listing, registration, qualification, consent or approval has
been effected or obtained free of any conditions not acceptable to the Board.

15.   EFFECTIVE DATE OF PLAN

      This Plan will become effective as of January 1, 2002.

16.   SUCCESSORS

      This Plan will be binding upon and inure to the benefit of the Company,
its successors and assigns and the Participant and his heirs, executors,
administrators and legal representatives.

17.   HEADINGS AND CAPTIONS

            The headings and captions herein are provided for reference and
convenience only, shall not be considered part of the Plan, and shall not be
employed in the construction of the Plan.

18.   GOVERNING LAW

      The validity, construction, interpretation and effect of the Plan and
option agreements issued under the Plan will be governed exclusively by and
determined in accordance with the law of the Commonwealth of Pennsylvania.

                                       8

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