Document:

exv10w13

 

Exhibit 10.13

UGI CORPORATION

2000 DIRECTORS’ STOCK OPTION PLAN

AMENDED AND RESTATED AS OF MAY 24, 2005

1. Purpose and Design

The purpose of this Plan is to (1) encourage ownership of Company Stock by non-employee
directors and thereby align such directors’ interests more closely with the interests of
shareholders of the Company, and (2) assist the Company in securing and retaining highly qualified
persons to serve as non-employee directors, in which position they may contribute materially to the
long-term growth and profitability of the Company, by affording them an opportunity to acquire
Stock. No grants shall be made under this Plan after January 1, 2004.

2. Definitions

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

2.01 “Board” means the Company’s Board of Directors as constituted from time to time.

2.02 “Administrative Committee” means the committee of Company employees appointed by the
Committee to perform ministerial and other assigned functions.

2.03 “Change of Control” means a change of control as defined in the change of control
agreement between the Company and its chief executive officer, as amended from time to time.

2.04 “Committee” means the Compensation and Management Development Committee of the Board or
its successor.

2.05 “Company” means UGI Corporation, a Pennsylvania corporation and any successor thereto.

2.06 “Date of Grant” means the effective date of an Option grant; provided, however, that no
retroactive grants will be made.

 

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2.07 “Fair Market Value” of Stock means the average 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. In the event
that the New York Stock Exchange does not express sales prices in decimal form, the average will be
rounded to the next highest one-eighth of a point (.125). In the
event that the New York Stock Exchange expresses sales prices in decimal form, the average
will be rounded to the next highest penny. Notwithstanding the foregoing, in the case of a
cashless exercise pursuant to Section 7.4(iii), 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.

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 a non-employee director who is eligible to receive, and is granted,
Options under the Plan.

2.11 “Plan” means this 2000 Directors’ Stock Option Plan.

2.12 “Stock” means the Common Stock of the Company or such other securities of the Company as
may be substituted for Stock or such other securities pursuant to Section 10.

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.

3. Number and Source of Shares Available for Options — Maximum Allotment

The number of shares of Stock which may be made the subject of Options under this Plan at any
one time may not exceed 600,000 in the aggregate (after giving retroactive effect to the 2-for-1
Stock split distributed May 24, 2005), including shares acquired by Participants through exercise
of Options under this Plan. The number of shares of Stock which may be the subject of grants of
Options to any one individual in a calendar year will not exceed 30,000 (after giving retroactive
effective effect to the 2-for-1 Stock split distributed May 24, 2005. The foregoing limits will be
subject to the adjustment provisions of Section 10 below. 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 the 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.

 

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4. Duration of the Plan

The Plan will remain in effect until all Stock subject to it has been purchased pursuant to
the exercise of Options or all such Options have terminated without exercise. Notwithstanding the
foregoing, no Option may be granted after December 31, 2009.

5. Determination of Grants — Administration of Plan

5.1 Determination of Grants. The Company, after consultation with outside compensation
consultants, shall make recommendations to the Committee as to the grants to be made under the
Plan. Subject to the express provisions of the Plan, the Committee will have the authority to
determine the non-employee directors to whom, and the time or times at which, Options will be
granted, the number of shares to be subject to each Option, the Option Price to be paid for the
shares upon the exercise of each Option, and the period within which each Option may be exercised.
Grants made by the Committee will be subject to the approval of the Board.

5.2 Administration of Plan. The Plan will be administered by the Committee. 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, 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

Each director of the Company who, on any date on which an Option is to be granted (as
specified in Section 7 of the Plan), is not an employee of the Company or any parent or Subsidiary
of the Company, will be eligible to receive Options under the Plan. The foregoing notwithstanding,
no director who is serving on the Board as a result of a nomination or appointment pursuant to the
terms of any debt instrument, preferred stock, underwriting agreement, or other contract entered
into by the Company will be eligible to participate in the Plan. No person other than those
specified in this Section 6 will participate in the Plan.

7. Options

7.1 Grant of Options. Subject to the provisions of Sections 2.08 and 3: (i) Options may be
granted to Participants under substantially equal terms at any time and from time to time as may be
determined by the Committee, and (ii) subject to approval of the Board, the Committee will have
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.

 

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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.

7.3 Exercise and Vesting.

(a) Except as otherwise specified by the Committee in the stock option agreement, an Option
will be fully and immediately exercisable on 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, each Option, to the extent that it has not
previously been exercised, will terminate when the Participant holding such Option (while living)
ceases to be a non-employee director of the Company. However, if a Participant holding an Option
ceases to be a non-employee director by reason of (i) retirement, (ii) disability, or (iii) death,
the Option held by any such Participant will be fully and immediately exercisable (to the extent
not otherwise exercisable by its terms) and will thereafter become exercisable pursuant to the
following:

(i) Retirement. If a Participant ceases to serve as a director of the Company on account of
retirement, the Option theretofore granted to such Participant may be exercised at any time prior
to the earlier of the expiration date of the Option or the expiration of the 36-month period
following the Participant’s retirement. Retirement means cessation of service as a director of the
Company after (1) attaining age 65 with five or more years of service with the Company, or (2) ten
or more years of service with the Company.

(ii) The Committee shall have sole discretion to determine whether or not a Participant is
“disabled.” If a Participant is determined to be “disabled” by the Committee, the Option
theretofore granted to such Participant may be exercised at any time prior to the earlier of the
expiration date of the Option or the expiration of the 36 month period following the Participant’s
disability.

(iii) Death. In the event of the death of a Participant while serving as a director of the
Company, the Option theretofore granted to such Participant may be exercised 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. 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) If a Participant ceases serving as a director and, immediately thereafter, is employed by
the Company or any Subsidiary, then, solely for purposes of Section 7.3(b) of the
Plan, such Participant will not be deemed to have ceased service as a director at that time,
and his or her continued employment by the Company or any Subsidiary will be deemed to be continued
service as a director; provided, however, that such former director will not be eligible for
additional grants of Options under the Plan.

 

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7.4 Payment. The Option Price upon exercise 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 total Option Price, (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 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 a
non-employee director 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.

8. Non-Transferability of Options

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.

 

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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 or termination 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 tax 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.

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 the Company, stock split or reverse split, extraordinary dividend, liquidation,
dissolution, significant corporate transaction (whether relating to assets or stock) involving the
Company, 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) the number or kind of shares of Stock to be subject to Options thereafter granted under
the Plan, (ii) the number and kind of shares of Stock issuable upon exercise of outstanding
Options, and (iii) 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.

 

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11. Limitation of Rights

Nothing contained in this Plan will be construed to give a non-employee director any right to
a grant hereunder except as may be authorized in the discretion of the Committee. A grant under
this Plan will not constitute, nor be evidence of, any agreement or understanding, expressed or
implied, that a Participant has any right to serve as a director of the Company.

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.

13. 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.

14. Effective Date of Plan

The original effective date of the Plan is January 1, 2000.

 

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15. 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.

16. 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.

 

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Exhibit 10.14

UGI CORPORATION

2000 STOCK INCENTIVE PLAN

Amended and Restated as of May 24, 2005

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	1.

	 	Purpose and Design
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	3.

	 	Maximum Number of Shares Available for Options and Restricted Stock Grants
	 	 	3	 
	 
	 	 	 	 	 	 
	4.

	 	Duration of the Plan
	 	 	4	 
	 
	 	 	 	 	 	 
	5.

	 	Administration
	 	 	4	 
	 
	 	 	 	 	 	 
	6.

	 	Eligibility
	 	 	4	 
	 
	 	 	 	 	 	 
	7.

	 	Options
	 	 	4	 
	 
	 	 	 	 	 	 
	8.

	 	Restricted Stock
	 	 	7	 
	 
	 	 	 	 	 	 
	9.

	 	Dividend Equivalents and Restricted Stock Dividend Equivalents
	 	 	8	 
	 
	 	 	 	 	 	 
	10.

	 	Requirements for Performance Goals and Performance Periods
	 	 	11	 
	 
	 	 	 	 	 	 
	11.

	 	Non-Transferability
	 	 	12	 
	 
	 	 	 	 	 	 
	12.

	 	Consequences of a Change of Control
	 	 	12	 
	 
	 	 	 	 	 	 
	13.

	 	Adjustment of Number and Price of Shares, Etc.
	 	 	13	 
	 
	 	 	 	 	 	 
	14.

	 	Limitation of Rights
	 	 	13	 
	 
	 	 	 	 	 	 
	15.

	 	Amendment or Termination of Plan
	 	 	13	 
	 
	 	 	 	 	 	 
	16.

	 	Tax Withholding
	 	 	14	 
	 
	 	 	 	 	 	 
	17.

	 	Governmental Approval
	 	 	14	 
	 
	 	 	 	 	 	 
	18.

	 	Effective Date of Plan
	 	 	14	 
	 
	 	 	 	 	 	 
	19.

	 	Successors
	 	 	14	 
	 
	 	 	 	 	 	 
	20.

	 	Headings and Captions
	 	 	14	 
	 
	 	 	 	 	 	 
	21.

	 	Governing Law
	 	 	15	 
	 
	 	 	 	 	 	 
	Exhibit A	 	 	1	 

 (i) 

 

 

 

UGI CORPORATION

2000 STOCK INCENTIVE PLAN

AMENDED AND RESTATED AS OF MAY 24, 2005

1. Purpose and Design

The purpose of this Plan is to assist the Company in securing and retaining key corporate
executives of outstanding ability, who are in a position to significantly participate in the
development and implementation of the Company’s strategic plans and thereby contribute materially
to the long-term growth, development and profitability of the Company, by affording them an
opportunity to purchase its Stock under options or an opportunity to acquire stock by the
achievement of specific performance goals. The Plan is designed to align directly long-term
executive compensation with tangible, direct and identifiable benefits realized by the Company’s
shareholders. No grants may be made under this Plan after January 1, 2004.

2. Definitions

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

2.1 “Account” means a bookkeeping account established on the records of the Company to record
a Participant’s interests under the Plan.

2.2 “Administrative Committee” means the committee of employees of the Company appointed by
the Committee to perform ministerial and other assigned functions.

2.3 “Board” means UGI’s Board of Directors as constituted from time to time.

2.4 “Change of Control” means a change of control as defined in the attached Exhibit A, as
amended from time to time pursuant to Section 15.

2.5 “Committee” means the Compensation and Management Development Committee of the Board or
its successor.

2.6 “Company” means UGI Corporation, a Pennsylvania corporation, any successor thereto and any
Subsidiary.

2.7 “Comparison Group” means the group determined by the Committee (no later than ninety (90)
days after the commencement of a Performance Period) consisting of the Company and such other
companies deemed by the Committee (in its sole discretion) to be reasonably comparable to the
Company.

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

 

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2.9 “Dividend Equivalent” means an amount determined by multiplying the number of shares of
Stock subject to an Option granted in conjunction with the Dividend Equivalent (whether or not the
Option is ever exercised with respect to any or all shares of Stock subject thereto), subject to
any adjustment under Section 13, by the per-share cash dividend, or the per-share fair market value
(as determined by the Committee) of any dividend in consideration other than cash, paid by the
Company on its Stock on a dividend payment date that falls within the relevant Performance Period.
See also “Restricted Stock Dividend Equivalent.”

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

2.11 “Fair Market Value” of Stock means the average, rounded to one 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. 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. Notwithstanding the foregoing, in the
case of a cashless exercise pursuant to Section 7.4(iv), the Fair Market Value will be the actual
sale price of the shares issued upon exercise of the Option.

2.12 “Grant Letter” means the written instrument that sets forth the terms and conditions of a
grant under the Plan, including all amendments thereto.

2.13 “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.

2.14 “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.

2.15 “Participant” means an Employee designated by the Committee to participate in the Plan.

2.16 “Performance Goal” means the goal or goals and other requirements that must be met in
order for Dividend Equivalents and Restricted Stock Dividend Equivalents, if any, to be paid and
restrictions on Restricted Stock to lapse. All Performance Goals must meet the requirements of
Section 10.

2.17 “Performance Period” means the performance period during which performance will be
measured, as specified by the Committee. Performance Periods must meet the requirements of Section
10.

2.18 “Plan” means this 2000 Stock Incentive Plan.

 

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2.19 “Restricted Stock” means shares of Stock that are subject to restrictions as determined
by the Committee.

2.20 “Restriction Period” means the period of time during which Restricted Stock shall be
subject to restrictions or conditions, including the Performance Period and any other period
specified in the Grant Letter.

2.21 “Severance Plan” means any severance plan maintained by the Company that is applicable to
the Employee.

2.22 “Restricted Stock Dividend Equivalent” means an amount determined by multiplying the
number of shares of Restricted Stock granted in conjunction with the Restricted Stock Dividend
Equivalent, subject to any adjustment under Section 13, by the per-share cash dividend, or the
per-share fair market value (as determined by the Committee) of any dividend in consideration other
than cash, paid by the Company on its Stock on a dividend payment date that falls within the
relevant period specified in the Grant Letter.

2.23 “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.

2.24 “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.

2.25 “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.

2.26 “UGI” means UGI Corporation, a Pennsylvania corporation or any successor thereto.

3. Maximum Number of Shares Available for Options and Restricted Stock Grants

The number of shares of Stock which may be made the subject of Options and the number of
shares of Restricted Stock that may be granted under this Plan may not exceed 3,300,000 in the
aggregate (after giving retroactive effect to the 2-for-1 Stock split distributed May 24, 2005),
subject, however, to the adjustment provisions of Section 13 below, and provided that the maximum
number of Restricted Shares issued hereunder is 1,500,000 (after giving retroactive effect to the
2-for-1 Stock split distributed May 24, 2005). With regard to grants to any one individual in a
calendar year: (i) the number of shares of Restricted Stock that may be issued will not exceed
300,000 (after giving retroactive effect to the 2-for-1 Stock split distributed May 24, 2005), and
(ii) the number of shares of Restricted Stock together with the number of shares of Stock which may
be the subject of grants of Options will not exceed 1,500,000 (after giving retroactive effect to the 2-for-1 Stock
split distributed May 24, 2005). If

 

3

 

any Option expires or terminates for any reason without having been exercised in full or
if Restricted Stock is forfeited, the unpurchased shares subject to the Option or the forfeited
shares of Restricted Stock will again be available for the purposes of the Plan. Shares of
Restricted Stock and 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.

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 and all shares of Restricted Stock
have been vested or forfeited. Notwithstanding the foregoing, Options and Restricted Stock may not
be granted after December 31, 2009.

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 the terms and provisions of the restrictions relating to
Restricted Stock (none of which need be identical), 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 the Administrative Committee. The Grant Letter shall set forth the terms of each
grant under the Plan. Each Participant’s receipt of a Grant Letter shall constitute that
Participant’s acknowledgement and acceptance of the terms of the Plan and the grant and the
Committee’s authority and discretion.

6. Eligibility

Grants hereunder may be made only to Employees (including directors who are also Employees of
the Company) who, in the sole judgment of the Committee, are individuals who are in a position to
significantly participate in the development and implementation of the Company’s strategic plans
and thereby contribute materially to the continued growth and development of the Company and to its
future financial success.

7. Options

7.1 Grant of Options. Subject to the provisions of Sections 2.11 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, the vesting schedule associated with the Option, and whether the Option will include
Dividend Equivalents.

 

4

 

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, the Option’s vesting schedule, and whether the Option will include Dividend Equivalents.

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.

 

5

 

(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 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 upon exercise 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 applying Dividend
Equivalents payable to the Participant in accordance with Section 8 of the Plan in an amount equal
to the total Option Price, (iv) by payment through a broker in accordance with procedures permitted
by Regulation T of the Federal Reserve Board, (v) by such other method as the Committee may
approve, or (vi) by a combination of (i), (ii), (iii), (iv) and/or (v). 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 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 Stock. 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.

 

6

 

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.

8. Restricted Stock

8.1 Grant of Restricted Stock. Subject to the provisions of Section 3, shares of Restricted
Stock may be granted to Participants at any time and from time to time as may be determined by the
Committee. Shares of Restricted Stock may be granted with or without Restricted Stock Dividend
Equivalents as determined by the Committee. Shares issued or transferred pursuant to Restricted
Stock awards may be issued or transferred for consideration or for no consideration, and will be
subject to Performance Goals meeting the requirements of Section 10, including all requirements set
forth in the Grant Letter.

8.2 Requirement of Employment or Service. The restrictions on a Participant’s Restricted
Stock shall lapse, and the Restricted Stock shall be payable, at the end of the Restriction Period
according to the terms set forth in the Grant Letter. If the Participant ceases to be employed by,
or provide service to, the Company before the end of the Restriction Period, the Restricted Stock
award will terminate as to all shares covered by the grant as to which the restrictions have not
lapsed, and those shares of Stock must be immediately returned to the Company. However, if a
Participant holding Restricted Stock ceases to be an Employee by reason of (i) retirement, (ii)
disability, or (iii) death, the restrictions on Restricted Stock held by any such Participant will
lapse pursuant to the following:

(a) Retirement. If a Participant terminates employment on account of a retirement under the
Company’s retirement plan applicable to that Participant, the restrictions on such Participant’s
Restricted Stock will lapse with regard to any Performance Period that ends within 36 months after
the date of such retirement; provided that the Performance Goals associated with such Performance
Period are achieved within that 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.

(b) Disability. If a Participant is determined to be “disabled” (as defined under the
Company’s long-term disability plan), the restrictions on such Participant’s Restricted Stock will
lapse with regard to any Performance Period that ends within 36 months after the date of such
disability; provided that the Performance Goals associated with such Performance Period are
achieved within that 36 month period.

(c) Death. In the event of the death of a Participant while employed by the Company, the
restrictions on such Participant’s Restricted Stock will lapse at the end of the Performance Period
associated with such Restricted Stock upon the achievement of the related Performance Goals.

 

7

 

(d) Time of Payment. In the event of retirement, disability or death, the Participant’s
Restricted Stock shall be paid at the date specified for payment of the Restricted Stock in the
Grant Letter, or at an earlier date determined by the Committee.

(e) Coordination with Severance Plan. Notwithstanding anything in this Plan to the contrary,
if a Participant receives severance benefits under a Severance Plan, the terms of which require
that severance compensation payable under the Severance Plan be reduced by benefits payable under
this Plan, any amount payable to the Participant under Restricted Stock and Restricted Stock
Dividend Equivalents after the Participant’s termination of employment shall be reduced by the
amount of severance compensation paid to the Participant under the Severance Plan, as required by,
and according to the terms of, the Severance Plan.

8.3 Restrictions on Transfer and Legend on Stock Certificate. During the Restriction Period
set forth in the Grant Letter, a Participant may not sell, assign, transfer, pledge or otherwise
dispose of the shares of Restricted Stock or rights to Restricted Stock Dividend Equivalents, if
any. Any certificate for a share of a Restricted Stock will contain a legend giving appropriate
notice of the restrictions in the grant. The Participant will be entitled to have the legend
removed from the stock certificate covering the shares subject to restrictions when all
restrictions on such shares have lapsed. The Administrative Committee may determine that the
Company will not issue certificates for Restricted Stock until all restrictions on such shares have
lapsed, or that the Company will retain possession of certificates for shares of Restricted Stock
until all restrictions on such shares have lapsed.

8.4 Privileges of a Shareholder. Unless the Committee determines otherwise, during the
Restriction Period, a Participant who has been issued certificates under Section 8.3 will have the
right to vote shares of Restricted Stock and to receive any dividends or other distributions paid
on such shares, subject to any restrictions deemed appropriate by the Committee.

8.5 Form of Payment for Restricted Stock. The Committee will have the sole discretion to
determine whether the Company’s obligation in respect of payment of Restricted Stock awards for a
Participant who is not issued certificates under Section 8.3 will be paid in Stock, solely in cash
or partly in Stock and partly in cash.

9. Dividend Equivalents and Restricted Stock Dividend Equivalents

(a) Amount of Dividend Equivalents Credited. If the Committee so specifies, as of the Date of
Grant in the stock option agreement, from the Date of Grant of an Option to a Participant (or, in
the case of an Option granted after the date of commencement of a Performance Period to a new
Participant or to a Participant with changed responsibilities, in which event, from such date not
earlier than the date of commencement of the Performance Period as is designated by the Committee)
until the earlier of (i) the end of the applicable Performance Period or (ii) the date of
disability, death or termination of employment for any reason (including retirement), of a
Participant, the Company will keep records for such Participant (“Account”) and will credit on each
payment date for the payment of a dividend made by UGI on its Stock an amount equal to the Dividend
Equivalent associated with such Option. Notwithstanding the foregoing, a Participant may not accrue
during any calendar year
Dividend Equivalents in excess of $1,000,000. Except as set forth in Section 9.5 below, no
interest will be credited to any such Account.

 

8

 

(b) Amount of Restricted Stock Dividend Equivalents Credited. If the Committee so specifies
when granting Restricted Stock, from the Date of Grant of Restricted Stock to a Participant (or, in
the case of Restricted Stock granted after the date of commencement of a Performance Period to a
new Participant or to a Participant with changed responsibilities, in which event, from such date
not earlier than the date of commencement of the Performance Period as is designated by the
Committee) until the earlier of (i) the end of the applicable Restriction Period or (ii) the date
of disability, death or termination of employment for any reason (including retirement), of a
Participant, the Company will maintain an Account for each Participant and will credit on each
payment date for the payment of a dividend made by UGI on its Stock an amount equal to the
Restricted Stock Dividend Equivalent associated with such Restricted Stock. Notwithstanding the
foregoing, a Participant may not accrue during any calendar year Restricted Stock Dividend
Equivalents in excess of $1,000,000. No interest will be credited to any such Account.

9.2 Payment of Credited Dividend Equivalents and Restricted Stock Dividend Equivalents.
Payment of Dividend Equivalents and Restricted Stock Dividend Equivalents will be made only upon
the determination by the Committee that all requirements of the Performance Goals associated with
such Dividend Equivalents and Restricted Stock Dividend Equivalents have been achieved as
prescribed in accordance with Section 10.

9.3 Timing of Payment of Dividend Equivalents and Restricted Stock Dividend Equivalents.

(a) Except as otherwise determined by the Committee, in the event of the (i) termination of an
Option prior to exercise pursuant to Section 7.3(b) hereof, or (ii) acceleration of the exercise
date of an Option pursuant to Section 7.3(a) hereof, in either case prior to the end of the
applicable Performance Period, no payments of Dividend Equivalents associated with any Option will
be made (A) prior to the end of the applicable Performance Period and (B) to any Participant whose
employment by the Company terminates prior to the end of the applicable Performance Period for any
reason other than retirement under the Company’s retirement plan, death, disability or Termination
without Cause. As soon as practicable after the end of such Performance Period, the Committee will
certify and announce the results for each Performance Period prior to any payment of Dividend
Equivalents and unless a Participant will have made an election under Section 9.6 to defer receipt
of any portion of such amount, a Participant will receive the aggregate amount of Dividend
Equivalents payable to that Participant in the form specified by the Committee.

(b) Except as otherwise determined by the Committee, in the event of the termination of a
grant of Restricted Stock pursuant to Section 8.2 hereof, no payments of Restricted Stock Dividend
Equivalents associated with Restricted Stock will be made (A) prior to the end of the applicable
Restriction Period and (B) to any Participant whose employment by the Company terminates prior to
the end of the applicable Restriction Period for any reason other than retirement under the
Company’s retirement plan, death or disability. As soon as practicable after the end of a
Performance Period, the Committee will certify and announce the results for

 

9

 

the Performance Period prior to any payment of Restricted Stock Dividend Equivalents. Unless
a Participant will have made an election under Section 9.6 to defer receipt of any portion of such
amount, a Participant will receive the aggregate amount of Restricted Stock Dividend Equivalents
payable to that Participant in cash at the end of the applicable Restriction Period.

(c) Notwithstanding anything to the contrary in this Section 9.3, unless a payment of Dividend
Equivalents associated with an Option is being made upon full exercise or termination of such
Option, no Dividend Equivalents will be paid (either at the end of the applicable Performance
Period or on a date such Dividend Equivalents are scheduled to be paid pursuant to a deferral
election) if the average Fair Market Value of Stock for a period of thirty (30) consecutive
business days immediately preceding the end of the applicable Performance Period or the date such
deferred payment is scheduled to be made (as the case may be) is less than the exercise price of
the Option to which such Dividend Equivalents were associated, and such payment will instead be
made at the earlier of (i) such time as the average Fair Market Value of Stock over a period of
ninety (90) consecutive business days thereafter exceeds the exercise price of such Option, or (ii)
the termination or expiration date of such Option.

9.4 Form of Payment for Dividend Equivalents. The Committee will have the sole discretion to
determine whether the Company’s obligation in respect of payment of Dividend Equivalents will be
paid solely in credits to be applied toward payment of the Option Price, solely in cash or partly
in such credits and partly in cash.

9.5 Interest on Dividend Equivalents. From a date which is thirty (30) days after the end of
the applicable Performance Period until the date that all Dividend Equivalents associated with such
Option and payable to a Participant are paid to such Participant, the Account maintained by the
Company in its books and records with respect to such Dividend Equivalents will be credited with
interest at a market rate determined by the Administrative Committee. The interest rate will be no
higher than the prime interest rate as quoted in the Wall Street Journal on the last day of the
month preceding the end of the Performance Period, or the preceding business day if the last day of
the month is not a business day.

9.6 Deferral of Dividend Equivalents and Restricted Stock Dividend Equivalents. A Participant
will have the right to defer receipt of any Dividend Equivalent or Restricted Stock Dividend
Equivalent payments associated with an Option or Restricted Stock if the Participant elects to do
so on or prior to December 31 of the year preceding the beginning of the last full year of the
applicable Performance Period (or such other time as the Administrative Committee will determine is
appropriate to make such deferral effective under the applicable requirements of federal tax laws).
The terms and conditions of any such deferral (including the period of time thereof) will be
subject to approval by the Administrative Committee and all deferrals will be made on a form
provided a Participant for this purpose.

 

10

 

10. Requirements for Performance Goals and Performance Periods

10.1 Designation as Qualified Performance-Based Compensation. Grants of Restricted Stock,
Restricted Stock Dividend Equivalents and Dividend Equivalents will qualify as “qualified
performance-based compensation” under Section 162(m) of the Internal Revenue Code (“Code”),
including the requirement that the achievement of the goals be substantially uncertain at the time
they are established and that the goals be established in such a way that a third party with
knowledge of the relevant facts could determine whether and to what extent the Performance Goals
have been met. The Committee will not have discretion to increase the amount of compensation that
is payable upon achievement of the designated Performance Goals, but may, in its sole discretion,
reduce the amount of compensation that is payable upon achievement of the designated Performance
Goals.

10.2 Requirements for Performance Goals. When Restricted Stock, Restricted Stock Dividend
Equivalents and Dividend Equivalents are granted, the Committee will establish in writing
Performance Goals either before the beginning of the Performance Period or during a period ending
no later than the earlier of (i) 90 days after the beginning of the Performance Period or (ii) the
date on which 25% of the Performance Period has elapsed, or such other date as may be required or
permitted under applicable regulations under Section 162(m) of the Code. The Performance Goal must
specify (A) the objective Performance Goal(s) that must be met in order for restrictions on the
Restricted Stock to lapse or the Restricted Stock Dividend Equivalents or Dividend Equivalents to
be paid, (B) the Performance Period during which performance will be measured, (C) the maximum
amounts that may be paid if the Performance Goals are met, and (D) any other conditions that the
Committee deems appropriate and consistent with the Plan and the requirements of Section 162(m) of
the Code for qualified performance based compensation, including any Restriction Period, the time
of payment and other requirements.

10.3 Criteria Used for Performance Goals. The Committee will use objectively determinable
business criteria for the Performance Goals based on one or more of the following criteria: stock
price, earnings per share, net earnings, operating earnings, return on assets, shareholder return,
return on equity, growth in assets, unit volume, sales, cash flow, market share, relative
performance to a Comparison Group, or strategic business criteria consisting of one or more
objectives based on meeting specified revenue goals, market penetration goals, geographic business
expansion goals, cost targets or goals relating to acquisitions or divestitures. The Performance
Goals may relate to the Participant’s business unit or the performance of the Company and its
subsidiaries as a whole, or any combination of the foregoing. Performance Goals need not be uniform
as among Participants.

10.4 Announcement of Performance; Forfeitures. The Committee will certify and announce the
results for each Performance Period to all Participants as promptly as practicable following the
completion of the Performance Period. If and to the extent that all requirements of the
Performance Goals and the Grant Letter are not met, grants of Restricted Stock, Restricted Stock
Dividend Equivalents or Dividend Equivalents will be forfeited.

 

11

 

11. Non-Transferability

No Option, shares of Restricted Stock, rights to Restricted Stock Dividend Equivalents,
Dividend Equivalents or other rights 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.

12. Consequences of a Change of Control

12.1 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, (ii) all outstanding Options will automatically accelerate and become fully
exercisable, (iii) the restrictions and conditions on all outstanding Restricted Stock grants will
immediately lapse, and (iv) Dividend Equivalents and Restricted Stock Dividend Equivalents will
become payable in cash in such amounts as the Committee may determine.

12.2 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), and other outstanding grants will be converted to similar grants of the
surviving corporation (or a parent of the surviving corporation).

12.3 Other Alternatives. Notwithstanding the foregoing, subject to Section 12.4 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.

12.4 Committee. The Committee making the determinations under this Section 12 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 12.1 and 12.2 will apply, and the Committee will not have discretion to vary
them.

12.5 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 12) 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.

 

12

 

13. 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 Restricted Stock and Options
thereafter granted under the Plan, (iv) the number and kind of shares of Stock issuable upon
exercise of outstanding Options, (v) the Option Price per share thereof, (vi) the number of shares
of Restricted Stock, (vii) the terms and conditions applicable to Restricted Stock, and/or (viii)
the terms and conditions applicable to Dividend Equivalents and Restricted Stock Dividend
Equivalents, provided that the number of Restricted Shares and 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 and grant of Restricted Stock,
whether a stock option agreement or grant letter with respect to a particular Option or grant of
Restricted Stock has been theretofore or is thereafter executed.

14. Limitation of Rights

Nothing contained in this Plan will be construed to give an Employee any right to a grant
hereunder except as may be authorized in the discretion of the Committee. A grant under this Plan
will 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.

15. 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 or Restricted Share has previously been granted, adversely affect the rights of
such Participant under such Option or Restricted Share, including any associated Dividend
Equivalents or Restricted Stock Dividend Equivalents. 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.

 

13

 

16. Tax Withholding

Upon the lapse of restrictions on Restricted Stock and 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.

17. Governmental Approval

Each share of Restricted Stock and 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 Restricted Share or 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.

18. Effective Date of Plan

18.1 Effective Date. This Plan will become effective as of January 1, 2000, subject to
ratification by the Company’s shareholders prior to March 31, 2000. The 2003 amendment and
restatement of the Plan is effective as of December 16, 2003.

18.2 Shareholder Approval for “Qualified Performance-Based Compensation.” This Plan must be
reapproved by the shareholders of UGI no later than the first shareholders meeting that occurs in
the fifth year following the year in which the shareholders previously approved the provisions of
Section 10, if required by section 162(m) of the Code or the regulations thereunder.

19. 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.

20. 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.

 

14

 

21. 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.

The 2000 Stock Incentive Plan was approved by the shareholders of UGI Corporation on February 29,
2000.

 

15

 

UGI CORPORATION

2000 STOCK INCENTIVE PLAN

Exhibit A

For purposes of this Plan, the term “Change of Control,” and defined terms used in the
definition of “Change of Control,” shall have the following meanings:

(1) “Change of Control” shall mean:

(i) Any Person (except UGI, any UGI Subsidiary, any employee benefit plan of UGI or of any UGI
Subsidiary, or any Person or entity organized, appointed or established by UGI for or pursuant to
the terms of any such employee benefit plan), together with all Affiliates and Associates of such
Person, becomes the Beneficial Owner in the aggregate of 20% or more of either (i) the then
outstanding shares of common stock of UGI (the “Outstanding UGI Common Stock”) or (ii) the combined
voting power of the then outstanding voting securities of UGI entitled to vote generally in the
election of directors (the “UGI Voting Securities”); or

(ii) Individuals who, as of the beginning of any 24-month period, constitute the UGI Board of
Directors (the “Incumbent UGI Board”) cease for any reason to constitute at least a majority of the
Incumbent UGI Board, provided that any individual becoming a director of UGI subsequent to the
beginning of such period whose election or nomination for election by the UGI shareholders was
approved by a vote of at least a majority of the directors then comprising the Incumbent UGI Board
shall be considered as though such individual were a member of the Incumbent UGI Board, but
excluding, for this purpose, any such individual whose initial assumption of office is in
connection with an actual or threatened election contest relating to the election of the Directors
of UGI (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange
Act); or

(iii) Consummation by UGI of a reorganization, merger or consolidation (a “Business
Combination”), in each case, with respect to which all or substantially all of the individuals and
entities who were the respective Beneficial Owners of the Outstanding UGI Common Stock and UGI
Voting Securities immediately prior to such Business Combination do not, following such Business
Combination, Beneficially Own, directly or indirectly, more than 50% of, respectively, the then
outstanding shares of common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors, as the case may be, of the
corporation resulting from such Business Combination in substantially the same proportion as their
ownership immediately prior to such Business Combination of the Outstanding UGI Common Stock and
UGI Voting Securities, as the case may be; or

(iv) Consummation of (a) a complete liquidation or dissolution of UGI or (b) a sale or other
disposition of all or substantially all of the assets of UGI other than to a corporation with
respect to which, following such sale or disposition, more than 50% of, respectively, the then
outstanding shares of common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors is then owned beneficially,

 

 

 

directly or indirectly, by all or substantially all of the individuals and entities who were
the Beneficial Owners, respectively, of the Outstanding UGI Common Stock and UGI Voting Securities
immediately prior to such sale or disposition in substantially the same proportion as their
ownership of the Outstanding UGI Common Stock and UGI Voting Securities, as the case may be,
immediately prior to such sale or disposition.

(2) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in
Rule 12b-2 of the General Rules and Regulations under the Exchange Act.

(3) A Person shall be deemed the “Beneficial Owner” of any securities: (i) that such Person or
any of such Person’s Affiliates or Associates, directly or indirectly, has the right to acquire
(whether such right is exercisable immediately or only after the passage of time) pursuant to any
agreement, arrangement or understanding (whether or not in writing) or upon the exercise of
conversion rights, exchange rights, rights, warrants or options, or otherwise; provided, however,
that a Person shall not be deemed the “Beneficial Owner” of securities tendered pursuant to a
tender or exchange offer made by such Person or any of such Person’s Affiliates or Associates until
such tendered securities are accepted for payment, purchase or exchange; (ii) that such Person or
any of such Person’s Affiliates or Associates, directly or indirectly, has the right to vote or
dispose of or has “beneficial ownership” of (as determined pursuant to Rule 13d-3 of the General
Rules and Regulations under the Exchange Act), including without limitation pursuant to any
agreement, arrangement or understanding, whether or not in writing; provided, however, that a
Person shall not be deemed the “Beneficial Owner” of any security under this clause (ii) as a
result of an oral or written agreement, arrangement or understanding to vote such security if such
agreement, arrangement or understanding (A) arises solely from a revocable proxy given in response
to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable
provisions of the General Rules and Regulations under the Exchange Act, and (B) is not then
reportable by such Person on Schedule 13D under the Exchange Act (or any comparable or successor
report); or (iii) that are beneficially owned, directly or indirectly, by any other Person (or any
Affiliate or Associate thereof) with which such Person (or any of such Person’s Affiliates or
Associates) has any agreement, arrangement or understanding (whether or not in writing) for the
purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described in the
proviso to clause (ii) above) or disposing of any securities; provided, however, that nothing in
this Section 1(c) shall cause a Person engaged in business as an underwriter of securities to be
the “Beneficial Owner” of any securities acquired through such Person’s participation in good faith
in a firm commitment underwriting until the expiration of forty (40) days after the date of such
acquisition.

(4) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

(5) “Person” shall mean an individual or a corporation, partnership, trust, unincorporated
organization, association, or other entity.

(6) “UGI Subsidiary” shall mean any corporation in which UGI directly or indirectly, owns at
least a fifty percent (50%) interest or an unincorporated entity of which UGI, as applicable,
directly or indirectly, owns at least fifty percent (50%) of the profits or capital interests.

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