Document:

exv10w66

 

Exhibit 10.66

UGI CORPORATION

2004 OMNIBUS EQUITY COMPENSATION PLAN

SUB-PLAN FOR FRENCH EMPLOYEES

(Effective December 6, 2005)

 

 

 

UGI Corporation

2004 Omnibus Equity Compensation Plan

Sub-Plan for French Employees

Table of Contents

	 	 	 	 	 	 	 
	Sub-Plan for French Employees	 	 	1	 
	 
	 	 	 	 	 	 
	1.
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	2.
	 	Term of Sub-Plan	 	 	1	 
	 
	 	 	 	 	 	 
	3.
	 	Eligible Persons	 	 	2	 
	 
	 	 	 	 	 	 
	4.
	 	Options	 	 	2	 
	 
	 	 	 	 	 	 
	5.
	 	Stock Units	 	 	4	 
	 
	 	 	 	 	 	 
	6.
	 	Performance Units	 	 	5	 
	 
	 	 	 	 	 	 
	7.
	 	Adjustments	 	 	7	 
	 
	 	 	 	 	 	 
	8.
	 	Amendment	 	 	8	 
	 
	 	 	 	 	 	 
	9.
	 	Change of Control	 	 	8	 
	 
	 	 	 	 	 	 
	10.
	 	Applicable Regulations	 	 	8	 
	 
	 	 	 	 	 	 

 i 

 

 

 

UGI Corporation

2004 Omnibus Equity Compensation Plan

Sub-Plan for French Employees

Pursuant to the tax circulars dated May 6, 1988, No. 4 N-3-88, dated August 30, 1997, No. 4 N
2431 and dated May 24, 2005, No. 4 F 14-05, this subplan (the “Sub-Plan”) sets forth the terms and
conditions applicable to (i) Options granted under Section 7 of the UGI Corporation 2004 Omnibus
Equity Compensation Plan (the “Plan”), (ii) Stock Units granted under Section 8 of the Plan and
(iii) Performance Units granted under Section 9 of the Plan to Employees who are, or may become,
subject to taxation on compensation in France. The defined terms shall have the meanings given
those terms in the Plan or in this Sub-Plan, if not defined in the Plan.

1. Definitions

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

(a) “Disabled” or “Disability” means a long-term disability as defined in the Company’s
long-term disability plan applicable to the Employee.

(b) “Retirement” means termination of employment after attaining age 55 with ten or more years
of service with the Company.

(c) “Subsidiary” means any corporation, at least 20% of outstanding voting stock or voting
power of which is owned, directly or indirectly, by UGI Corporation.

(d) “Termination without Cause” means termination of employment 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 Board may
determine in its sole discretion whether, and under what circumstances, an Employee’s voluntary
termination upon a significant reduction in the Employee’s duties and responsibilities will
constitute a Termination without Cause for purposes of the Plan.

2. Term of Sub-Plan

The Plan has been approved by the shareholders of the Company at an annual shareholders
meeting with authorization to the Board to grant Options, Stock Units and Performance Units
thereunder. The authorization may be used by the Board under the Sub-Plan for a maximum period of
thirty-eight (38) months following the date on which the Plan was approved or ratified by the
shareholders in an annual meeting.

 

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3. Eligible Persons

(a) Options may be granted under the Sub-Plan only to Employees; provided, however that, an
Employee who owns more than ten percent (10%) of the Company’s Stock on the Date of Grant shall not
be eligible to receive Option grants under this Sub-Plan. The Board shall authorize and administer
all Option grants under the Sub-Plan.

(b) Stock Units and Performance Units may be granted under the Sub-Plan only to Employees;
provided, however, that an Employee shall not be eligible to receive Stock Units or Performance
Units under this Sub-Plan if (i) the Employee owns more than ten percent (10%) of the Company’s
Stock on the Date of Grant or (ii) the granting of Stock Units or Performance Units would result in
the holding by such Employee of more than ten percent (10%) of the Company’s Stock on the Date of
Grant. The Board shall authorize and administer all Stock Units and Performance Units under the
Sub-Plan.

4. Options

(a) Types of Options. Options granted under the Sub-Plan shall be options to purchase newly
issued Stock (i.e., subscription options for French law purposes) and not options to purchase
previously acquired Stock (i.e., purchase options for French law purposes).

(b) Grant of Options. The Board will select the Employees who shall receive Options, and will
determine the number of shares subject to each Option, the Option Price and the other terms of the
Options, subject to the provisions of this Sub-Plan. The terms of each Option shall be set forth
in the Grant Letter. No Dividend Equivalent will be granted with respect to Options.

(c) Exercise and Vesting.

(i) Each Option under the Sub-Plan shall become exercisable on the fourth anniversary of the
Date of Grant. No Option will be exercisable more than nine years and six months following the
Date of Grant.

(ii) In the event that an Employee holding an Option ceases to be employed by the Company, the
Options held by such Employee will terminate on the date such Employee ceases such employment.
However, if an Employee holding an Option ceases to be employed by the Company by reason of (i)
Termination without Cause, (ii) Retirement, (iii) Disability, or (iv) death, the Option held by the
Employee will thereafter be exercisable pursuant to the following:

(A) Termination Without Cause. If an Employee terminates employment on account of a
Termination without Cause, the Option held by such Employee will thereafter be exercisable only
with respect to that number of shares of Stock with respect to which the Option is already
exercisable on the date such Employee’s employment terminates. 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 the Employee ceases to be employed by the Company.

 

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(B) Retirement. If an Employee ceases to be employed by the Company on account of Retirement,
the Option held by such Employee will thereafter become exercisable as if such Employee had
remained employed by the Company for 48 months after the date of such Retirement. Such Option will
terminate upon the earlier of the expiration date of the Option or the expiration of such 48-month
period.

(C) Disability. If an Employee is determined by the Board to be Disabled, the Option held by
such Employee will thereafter become exercisable as if such Employee had remained employed by the
Company for 48 months after the date of such Disability. The Option will terminate upon the
earlier of the expiration date of the Option or the expiration of the 48-month period after such
termination of employment.

(D) Death. In the event of the death of an Employee while employed by the Company or while
the Option is outstanding pursuant to subsections (A), (B) or (C) above, the Option held by such
Employee will be fully and immediately exercisable and may be exercised at any time prior to the
expiration of the six-month period following the Employee’s death. After an Employee’s death, the
Employee’s Option may be exercised by the personal representative of the Employee’s estate or the
personal representative under applicable law if the Employee dies intestate.

(d) Exercise Price. The Option Price for each grant of an Option under this Sub-Plan shall be
equal to the higher of (i) the Fair Market Value of a share of Stock on the Option grant date or
(ii) 95% of the average Fair Market Value of a share of Stock for the 20 trading days immediately
prior to the Date of Grant.

(e) Payment. The Option Price upon exercise of any Option under this Sub-Plan shall be
payable to the Company in full in one or both of the following forms: (a) in cash or (b) by
payment through a broker in accordance with procedures permitted by Regulation T of the Federal
Reserve Board, subject to applicable securities law restrictions and such procedures and
limitations as the Company may specify from time to time.

(f) Grant Dates. Options cannot be granted under this Sub-Plan (i) during the 10 trading days
preceding and following the date on which the consolidated accounts or annual accounts of the
Company are published and (ii) during a period (x) starting from the date on which the officers and
directors of the Company became aware of any information which, if published, could significantly
affect the Company’s market price and (y) ending at the close of the tenth trading day following
the publication of the information. No Option shall be granted in the 20 trading days immediately
following a distribution of dividends or a capital increase on the principal stock exchange on
which the shares of Stock are listed.

(g) Plan Limits. The number of shares of Stock subject to Options granted under the Plan
together with shares of Stock subject to outstanding Options under any other option plan of the
Company may not exceed one-third of the Company’s shares capital.

 

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5. Stock Units

(a) General Requirements. Each Stock Unit shall represent the right of the Participant to
receive a share of Stock after the expiration of the Restriction Period if the conditions specified
by the Board in the Grant Letter are met.

(b) Terms of Stock Units. The Board shall establish the conditions for acquisition of
ownership of the shares of Stock issuable with respect to Stock Units. The Board shall determine
in the Grant Letter two periods during which the shares of Stock issued with respect to Stock Units
will be subject to restrictions as follows:

(i) Restriction Period. The duration of the period in which the conditions for the
acquisition of shares of Stock must be satisfied shall not be less than 2 years (and will
correspond under French Law to the “période d’acquisition” as referred to under Section L 225-197-1
of the French Commercial Code). The Participant shall acquire full ownership of the shares of
Stock issuable with respect to Stock Units only after the expiration of this Restriction Period
except upon the Participant’s death while employed by the Company, in which case, the
representative of the Participant’s estate may ask within 6 months of the death to receive the
shares of Stock issuable with respect to the Stock Units granted to the Participant.

(ii) Standstill Period. The duration of this period shall not be less than 2 years (and will
correspond under French law to the “période d’obligation de conservation” as referred to under
Section L 225-197-1 of the French Commercial Code). It shall start after the expiration of the
Restriction Period. During this period, a Participant may not sell, assign, transfer, pledge or
otherwise dispose of the shares of Stock issued with respect to Stock Units.

(c) Requirements of Employment or Service. If the Participant ceases to be employed by, or
provide service to, the Company during the Restriction Period specified in the Grant Letter, all of
the Participant’s unvested Stock Units will terminate. However, if a Participant holding unvested
Stock Units ceases to be employed by, or provide service to, the Company by reason of Retirement,
Disability, or death, the restrictions on unvested Stock Units held by the Participant will lapse
pursuant to the following:

(i) If a Participant terminates employment or service on account of Retirement or Disability,
the restrictions on a pro-rata portion of the Participant’s outstanding Stock Units will lapse at
the end of the Restriction Period set forth in the Grant Letter, if all requirements of the Grant
Letter (other than continued employment) are met. The prorated portion will be determined as the
number of shares of Stock that would otherwise be issuable with respect to the Stock Units,
multiplied by a fraction, the numerator of which is the number of years during the Restriction
Period in which the Participant has been employed by, or provided service to, the Company and the
denominator of which is the number of years in the entire Restriction Period applicable to such
Stock Units. For purposes of the proration calculation, the year in which the Participant’s
Retirement or Disability occurs will be counted as a full year.

 

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(ii) In the event of Retirement or Disability, the prorated portion of the shares of Stock
subject to the Stock Units shall be issued after the end of the Restriction Period.

(iii) In the event of the death of a Participant while employed by the Company, the personal
representative of the Participant’s estate can demand within 6 months of the Participant’s death
that the shares of Stock issuable with respect to Stock Units to which a Restriction Period is
still applicable become immediately fully owned by the Participant’s estate.

(d) Dividend Equivalents. No dividend equivalents shall be granted with respect to Stock
Units.

(e) Payment with respect to Stock Units. No payment in cash shall be made with respect to
Stock Units or in lieu of shares of Stock. Upon expiration of the Restriction Period and
satisfaction of the conditions applicable for the acquisition of the shares issuable with respect
to Stock Units, ownership over the shares of Stock issuable with respect to Stock Units shall be
definitely acquired by (and transferred to) the Participant.

(f) Transfer of shares. After the Restriction and Standstill periods have expired, the
Participant shall have the right to transfer the shares of Stock without any limitations, subject
to the Company’s insider trading policies. However, the shares of Stock cannot be transferred (i)
during the 10 trading days preceding and following the date on which the consolidated accounts or
annual accounts of the Company are published and (ii) during a period (x) starting from the date on
which the officers and directors of the Company became aware of any information which, if
published, could significantly affect the Company’s market prices and (y) ending at the close of
the tenth trading day following the publication of the information.

(g) Right to vote and to receive dividends. Upon the issuance of any shares of Stock
following expiration of the Restriction Period, the Participant may exercise the voting right
attached to the shares of Stock issued pursuant to Stock Units and will be entitled to receive any
dividends or other distribution payable on such shares.

6. Performance Units

(a) General Requirements. Each Performance Unit shall represent the right of the Participant
to receive a share of Stock, after the expiration of the Measurement Period, if specified
performance goals and other conditions specified by the Board in the Grant Letter are met.

(b) Terms of Performance Units. The Board shall establish the performance goals and other
conditions for acquisition of ownership of the shares of Stock issuable with respect to the
Performance Units. The Board shall determine in the Grant Letter two periods during which the
shares of Stock issuable with respect to Performance Units will be subject to restrictions as
follows:

 

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(i) Measurement Period. The duration of the period in which the specified performance goals
and other conditions must be satisfied shall not be less than 2 years from the Date of Grant of the
Performance Units (and will correspond under French law to the “période d’acquisition” as referred
to under section L 225-197-1 of the French Commercial Code). The Participant shall acquire the
full ownership of the shares of Stock issuable with respect to Performance Units only after the
expiration of this Measurement Period and subject to the performance goals and other conditions
(such as requirements of employment) being met, except upon the Participant’s death while employed
by the Company in which case, the personal representative of the Participant’s estate may ask
within 6 months of the Participant’s death to receive the shares of Stock issuable with respect to
the Performance Units granted to the Participant.

(ii) Standstill Period. The duration of this period shall not be less than 2 years (and will
correspond under French law to the “période d’obligation de conservation” as referred to under
section L 225-197-1 of the French Commercial Code). It shall start after the expiration of the
Measurement Period. During this period, a Participant may not sell, assign, transfer, pledge or
otherwise dispose of the shares of Stock issued with respect to the Performance Units.

(c) Requirements of Employment or Service. If the Participant ceases to be employed by, or
provide service to, the Company during the Measurement Period specified in the Grant Letter, all of
the Participant’s Performance Units will terminate. However, if a Participant holding Performance
Units ceases to be employed by, or provide service to, the Company by reason of Retirement,
Disability, or death, the restrictions on Performance Units held by the Participant will lapse
pursuant to the following:

(i) If a Participant terminates employment or service on account of Retirement or Disability,
the restrictions on a pro-rata portion of the Participant’s outstanding Performance Units will
lapse at the end of the Measurement Period set forth in the Grant Letter, if the performance goals
and all requirements of the Grant Letter (other than continued employment) are met. The prorated
portion will be determined, for each award of Performance Units, as the number of shares of Stock
that would otherwise be issued according to the terms of the award of Performance Units, based on
achievement of the performance goals, multiplied by a fraction, the numerator of which is the
number of years during the Measurement Period in which the Participant has been employed by, or
provided service to, the Company and the denominator of which is the number of years in the entire
Measurement Period applicable to such Performance Units. For purposes of the proration
calculation, the year in which the Participant’s Retirement or Disability occurs will be counted as
a full year.

(ii) In the event of Retirement or Disability, the prorated portion of the Performance Units
shall be issued after the end of the Measurement Period.

(iii) In the event of the death of a Participant while employed by the Company, the personal
representative of the Participant’s estate can demand within 6 months of the Participant’s death
that the shares of Stock issuable with respect to
Performance Units to which a Measurement Period is still applicable become immediately fully
owned by the Participant’s estate.

 

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(d) Payment of Performance Units. If the Committee determines that the conditions to payment
of the Performance Units have been met, the Company shall issue to the Participant, within 21/2
months after the end of the Measurement Period, the number of shares of Stock approved, according
to achievement of the performance goals, up to the target award specified in the Participant’s
Grant Letter.

(e) No Dividend Equivalents. No Dividend Equivalents shall be granted with respect to
Performance Units.

(f) Payment with Respect to Performance Units. No payment in cash shall be made with
respect to Performance Units in lieu of shares of Stock. Upon expiration of the Measurement Period
and satisfaction of the specified performance goals and other conditions applicable to the
Performance Units, ownership over the shares of Stock issuable with respect to such Performance
Units shall be definitively acquired by (and transferred to) the Participant.

(g) Transfer of Shares. After the Measurement and Standstill periods have expired, the
Participant shall have the right to transfer the shares of Stock without any limitations, subject
to the Company’s insider trading policies. However, shares of Stock cannot be transferred (i)
during the 10 trading days preceding and following the date on which the consolidated accounts or
annual accounts of the Company are published and (ii) during a period (x) starting from the date on
which the officers and directors of the Company became aware of any information which, if
published, could significantly affect the Company’s market price and (y) ending at the close of the
tenth trading day following the publication of the information.

(h) Right to Vote and to Receive Dividends. Upon the issuance of any shares of Stock
following expiration of the Measurement Period, the Participant may exercise the voting right
attached to the shares granted under Performance Units and will be entitled to receive any
dividends or other distributions payable on such shares.

7. Adjustments

No adjustment to Stock provided for in Section 5(d) and 21(b) of the Plan may be made to any
Options, Stock Units or Performance Units under this Sub-Plan, except to the extent provided for
in:

(a) Sections 174.8 to 174.16 of Decree no. 67-236 of March 23, 1967, implementing French law
no. 66-537 of July 24, 1966, or

(b) Articles L 225-197-1 to L 225-197-5 of the French Commercial Code.

 

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8. Amendment

The Board may not amend the Plan in a way which affects this Sub-Plan, or Options, Stock Units
and Performance Units granted under this Sub-Plan, if such change is inconsistent with French law
(including, but not limited to, regulations or other communications provided by the AMF (Authorité
des Marchés Financiers)).

The Board may not amend this Sub-Plan without the approval of the stockholders in general
meeting if an amendment to the corresponding Article in the Plan would require such approval.

9. Change of Control

The provisions of the Plan applicable to a Change of Control shall apply to the Options, Stock
Units and Performance Units granted under this Sub-Plan, and, in the event of a Change of Control,
the Board may take such actions as it deems appropriate pursuant to the Plan and the Sub-Plan.

10. Applicable Regulations

Although this Sub-Plan is aimed at addressing and complying with the requirements of tax
circulars dated May 6, 1988, No. 4 N-3-88, August 30, 1997, No. 4 N 2431 and May 24, 2005, No. 5 F
14-05, each Participant is advised to consult with his/her counsel about his/her tax status and tax
treatment of the Options, Stock Units and Performance Units granted under this Sub-Plan. Neither
UGI Corporation nor any Subsidiary may be held liable for the personal tax treatment of any
Participant under this Sub-Plan.

 

8exv10w66a

 

Exhibit 10.66(a)

UGI CORPORATION

2004 OMNIBUS EQUITY COMPENSATION PLAN

SUB-PLAN FOR FRENCH EMPLOYEES

PERFORMANCE UNIT GRANT LETTER

This PERFORMANCE UNIT GRANT, dated as of January 1, 2006 (the “Date of Grant”), is delivered by UGI
Corporation (“UGI”) to                      (the “Participant”).

RECITALS

The UGI Corporation 2004 Omnibus Equity Compensation Plan (the “Plan”) provides for the grant
of performance units (“Performance Units”) with respect to shares of common stock of UGI
(“Shares”). The Sub-Plan for French employees (the “Sub-Plan”) sets forth the terms and conditions
applicable to the Performance Units granted under Section 9 of the Plan to employees who are, or
may become, liable to taxation on compensation in France. The Board of Directors of UGI (the
“Board”) has decided to grant Performance Units to the Participant under the Sub-Plan.

NOW, THEREFORE, the parties to this Grant Letter, intending to be legally bound hereby, agree
as follows:

1. Grant of Performance Units. Subject to the terms and conditions set forth in this Grant
Letter, in the Plan and in the Sub-Plan, the Board hereby grants to the Participant                     
Performance Units. The number of Performance Units set forth above is the maximum number of Shares
that may be earned pursuant to this award. The Performance Units are contingently awarded and will
be earned (and the corresponding ownership of Shares will be transferred to the Participant) after
the expiration of the Measurement Period (as defined below) if and to the extent that the
performance goals and other conditions of the Grant Letter are met.

2. Performance Goals.

(a) The Participant shall earn the right to issuance of Shares corresponding to the
Performance Units after the expiration of the Measurement Period if the performance goals described
in subsection (b) below are met for the Measurement Period, and if the Participant continues to be
employed by, or provide service to, the Company (as defined in the Plan) at least until the
expiration of the Measurement Period (except in the event of death, Disability or Retirement of the
Participant). The Measurement Period is the period beginning January 1, 2006 and ending December
31, 2008. The Measurement Period will correspond under French law to the “période d’acquisition”
as referred to under section L.225-197-1 of the French Commercial Code.

 

 

 

(b) The maximum number of Performance Units set forth in Section 1 hereof will be payable if
UGI’s Total Shareholder Return (TSR) equals the highest TSR of a peer group for the
Measurement Period. The peer group is the group of companies that comprises the S&P Utilities
Index during the Measurement Period. The actual amount of the award of Performance Units may be
lower than the maximum award, or even zero, based on UGI’s TSR percentile rank relative to the
companies in the S&P Utilities Index, as follows:

	 	 	 	 	 
	UGI’s TSR Rank

    (Percentile)	 	Percentage of Maximum Award Earned
	Highest
	 	 	100	%
	90th
	 	 	87.5	%
	75th
	 	 	75.0	%
	60th
	 	 	62.5	%
	50th
	 	 	50.0	%
	40th
	 	 	25.0	%
	less than 40th
	 	 	0	%

The percentage of Performance Units earned will be interpolated between each of the measuring
points.

(c) TSR shall be calculated by UGI using the comparative returns methodology used by Bloomberg
L.P. or its successor at the time of the calculation. The share price used for determining TSR at
the beginning and the end of the Measurement Period will be the average price for the 90-day period
preceding the beginning of the Measurement Period (i.e., the 90-day period ending on December 31,
2005) and the 90-day period ending on the last day of the Measurement Period (i.e., the 90-day
period ending on December 31, 2008).

(d) The percentage of the maximum award earned shall be based on UGI’s TSR rank as described
in clause (b) of this Section 2 and will determine the number of Performance Units (and the number
of Shares corresponding to the Performance Units) acquired by the Participant.

(e) At the end of the Measurement Period, the Compensation and Management Development
Committee of the Board (the “Committee”) will determine whether and to what extent the performance
goals have been met and the number of Shares to be issued with respect to the Performance Units.
Except as described in Section 3 below, the Participant must be employed by, or providing service
to, the Company on December 31, 2008 in order for the Participant to receive Shares with respect to
the Performance Units.

3. Termination of Employment or Service.

(a) Except as described below, if the Participant’s employment or service with the Company
terminates on or before the end of the Measurement Period, the Performance Units granted under
this Grant Letter will be forfeited.

 

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(b) If the Participant terminates employment or service on account of Retirement (as defined
in Section 8) or Disability (as defined in Section 8), the Participant will earn a pro-rata portion
of the Participant’s outstanding Performance Units, if the performance goals and the requirements
of this Grant Letter are met. The prorated portion will be determined as the
number of Shares that would otherwise be issuable after the end of the Measurement Period,
based on achievement of the performance goals, multiplied by a fraction, the numerator of which is
the number of calendar years during the Measurement Period in which the Participant has been
employed by, or provided service to, the Company and the denominator of which is three. For
purposes of the proration calculation, the calendar year in which the Participant’s termination of
employment or service on account of Retirement or Disability occurs will be counted as a full year.

(c) In the event of termination of employment or service on account of Retirement or
Disability, the prorated number of Shares shall be issued after the end of the Measurement Period,
pursuant to Section 4 below.

(d) In the event of termination of employment or service on account of death, the
representative of the Participant’s estate may ask within six months of the death to receive
immediately the number of Shares issuable with respect to the Performance Units granted to the
Participant.

4. Payment with Respect to Performance Units. If the Committee determines that the
conditions to payment of the Performance Units have been met, the Company shall issue to the
Participant, between January 1, 2009 and March 15, 2009, the number of Shares based on the
achievement of the performance goals, up to the maximum award specified in Section 1 above.

5. Standstill Period.

(a) After the Measurement Period has expired and during the Standstill Period (as defined
below), the Participant shall not sell, assign, transfer, pledge or otherwise dispose of the Shares
granted under the Performance Units.

(b) The Standstill Period is the period beginning upon the expiration of the Measurement
Period and ending two years after the end of the Measurement Period (and will correspond under
French law to the “période d’obligation de conservation” as referred to under section L.225-197-1
of the French Commercial Code).

6. Transfer of Shares. Except as otherwise provided below and subject to the Company’s
insider trading policies, after the Measurement and Standstill Periods have expired, the
Participant shall have the right to transfer the Shares without any limitations. However, Shares
cannot be transferred (i) during the ten trading days preceding and following the date on which the
consolidated accounts or annual accounts of the Company are published and (ii) during a period (x)
starting from the date on which the officers and directors of the Company became aware of any
information which, if published, could significantly affect the Company’s market price and (y)
ending at the close of the tenth trading day following the publication of the information.

 

3

 

7. Change of Control. If a Change of Control occurs during the Measurement Period, the
outstanding Performance Units will terminate and the Participant will be entitled to receive in
exchange an indemnification payment payable in cash. The amount of the indemnification payment
will be equal to the greater of (i) the value of the Shares that would be issued if 50% of the
maximum award was earned or (ii) the value of the Shares that would be issued as if the
Measurement Period ended on the date of the Change of Control, based on the Company’s achievement
of the performance goals as of the date of the Change of Control, as determined by the Committee.
If a former Participant is entitled to receive a prorated award for the measurement period pursuant
to Section 3(b) above, the award will be the prorated portion of the amount described in the
preceding sentence. The indemnification payment shall be paid on the closing date of the Change of
Control. Any such indemnification payment will be fully subject to social charges and personal
income tax.

8. Definitions. For purposes of this Grant Letter, the following terms will have the
meanings set forth below:

(a) “Company” means UGI and its Subsidiaries (as defined in the Plan).

(b) "Disability” means a long-term disability as defined in the Company’s long-term disability
plan applicable to the Participant.

(c) “Employed by, or provide service to, the Company” shall mean employment or service as an
employee or director of the Company.

(d) “Retirement” means the Participant’s retirement under the Retirement Income Plan for
Employees of UGI Utilities, Inc., if the Participant is covered by that Retirement Income
Plan. “Retirement” for other Company employees means termination of employment after
attaining age 55 with ten or more years of service with the Company.

9. Grant Subject to Plan Provisions. This grant is made pursuant to the Plan, the Terms
and Conditions established by the Board with respect to the Plan and the Sub-Plan, all of which are
incorporated herein by reference, and in all respects shall be interpreted in accordance with the
Plan and the Sub-Plan. The grant of Performance Units and the issuance of Shares thereunder are
subject to interpretations, regulations and determinations concerning the Plan and the Sub-Plan
established from time to time by the Board in accordance with the provisions of the Plan and the
Sub-Plan, including, but not limited to, provisions pertaining to (i) the registration,
qualification or listing of the Shares, (ii) changes in capitalization of the Company and (iii)
other requirements of applicable law. The Board shall have the authority to interpret and construe
the grant pursuant to the terms of the Plan and the Sub-Plan, and its decisions shall be conclusive
as to any questions arising hereunder.

10. No Employment or Other Rights. The grant of Performance Units shall not confer upon
the Participant any right to be retained by or in the employ or service of the Company and shall
not interfere in any way with the right of the Company to terminate the Participant’s employment or
service at any time. The right of the Company to terminate at will the Participant’s employment or
service at any time for any reason is specifically reserved.

11. No Shareholder Rights. During the Measurement Period, neither the Participant, nor any
person entitled to exercise the Participant’s rights in the event of the Participant’s death, shall
have any of the rights and privileges of a shareholder with respect to the Shares related to the
Performance Units, unless and until certificates for Shares have been issued to the Participant or
successor.

 

4

 

12. Assignment and Transfers. The rights and interests of the Participant under this Grant
Letter may not be sold, assigned, encumbered or otherwise transferred except, in the event of the
death of the Participant, by will or by the laws of descent and distribution. If the Participant
dies, the representative of the Participant’s estate may ask to receive the Shares acquired by the
Participant’s estate within 6 months of the death. The rights and protections of the Company
hereunder shall extend to any successors or assigns of the Company and to the Company’s parents,
subsidiaries, and affiliates.

13. Tax Considerations. Neither UGI Corporation nor any subsidiary shall be held liable
for the personal tax treatment of any Participant under this Grant.

14. Applicable Law. The validity, construction, interpretation and effect of this
instrument shall be governed by and construed in accordance with the laws of the Commonwealth of
Pennsylvania, without giving effect to the conflicts of laws provisions thereof.

15. Notice. Any notice to UGI provided for in this instrument shall be addressed to UGI in
care of the Corporate Secretary at UGI’s headquarters, and any notice to the Participant shall be
addressed to such Participant at the current address shown on the payroll of the Company, or to
such other address as the Participant may designate to the Company in writing. Any notice shall be
delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated
above, registered and deposited, postage prepaid, in a post office regularly maintained by the
United States Postal Service.

16. Authorization to Release Necessary Personal Information.

(a) The Participant hereby authorizes and directs the Participant’s employer to collect, use
and transfer in electronic or other form, any personal information (the “Data”) regarding the
Participant’s employment, the nature and amount of the Participant’s compensation and the fact and
conditions of the Participant’s participation in the Plan (including, but not limited to, the
Participant’s name, home address, telephone number, date of birth, social security number (or any
other social or national identification number), salary, nationality, job title, number of Shares
held and the details of all options or any other entitlement to Shares awarded, cancelled,
exercised, vested, unvested or outstanding) for the exclusive purpose of implementing,
administering and managing the Participant’s participation in the Plan. The Participant
understands that the Data may be transferred to the Company, or to any third parties assisting in
the implementation, administration and management of the Plan, including any requisite transfer to
a broker or other third party or with whom Shares acquired under the Performance Units or cash from
the sale of such Shares may be deposited. The Participant acknowledges that recipients of the Data
may be located in different countries, and those countries may have data privacy laws and
protections different from those in the country of the Participant’s residence. Furthermore, the
Participant acknowledges and understands that the transfer of the Data to the Company, or to any
third parties, is necessary for the Participant’s participation in the Plan. The Participant
understands that the Data will be held only as long as necessary to implement,
administer and manage the Participant’s participation in the Plan. For all transfers, the
Participant’s employer agrees and warrants that the processing, including the transfer itself, of
the Data will be carried out in accordance with the French and European legal data protection
regulation.

 

5

 

(b) The Participant may at any time amend the Data and/or withdraw the consents herein, by
contacting the Participant’s local human resources representative in writing. The Participant
further acknowledges that withdrawal of consent may affect the Participant’s ability to exercise or
realize benefits from the grant of Performance Units, and the Participant’s ability to participate
in the Plan.

17. No Entitlement or Claims for Compensation.

(a) The grant of Performance Units under the Plan is made at the discretion of the Board, and
the Plan may be suspended or terminated by UGI at any time. The grant of an award in one year or
at one time does not in any way entitle the Participant to a grant in the future. The Plan is
wholly discretionary in nature and is not to be considered part of the Participant’s normal or
expected compensation subject to severance, resignation, redundancy or similar compensation. The
value of the Performance Units is an extraordinary item of compensation which is outside the scope
of the Participant’s employment contract (if any).

(b) The Participant shall have no rights to compensation or damages as a result of the
Participant’s cessation of employment for any reason whatsoever, whether or not in breach of
contract, insofar as those rights arise or may arise from the Participant’s ceasing to have rights
under this grant as a result of such cessation or from the loss or diminution in value of such
rights. If the Participant did acquire any such rights, the Participant is deemed to have waived
them irrevocably by accepting the grant.

 

6

 

IN WITNESS WHEREOF, UGI has caused its duly authorized officers to execute and attest this Grant
Letter, and the Participant has executed this Grant Letter, effective as of the Date of Grant.

	 	 	 	 	 	 	 
	 	 	 	 	UGI Corporation
	Attest
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	Corporate Secretary

	 	 	 	 	 	Robert H. Knauss
	 

	 	 	 	 	 	Vice President and General Counsel

I hereby acknowledge receipt of the Plan, the Terms and Conditions and the Sub-Plan incorporated
herein. I accept the Performance Units described in this Grant Letter, and I agree to be bound by
the terms of the Plan, including the Terms and Conditions, the Sub-Plan and this Grant Letter. I
hereby further agree that all the decisions and determinations of the Board shall be final and
binding on me and any other person having or claiming a right under this Grant.

	 	 	 
	 
	 	 
	 

Participant

	 	 

 

7

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