Document:

Exhibit 10.18

Exhibit 10.18

CHANGE IN CONTROL AGREEMENT

This CHANGE IN CONTROL AGREEMENT (“Agreement”) is made as of
 _____ 

, 2008,
between UGI Utilities, Inc. (the “Company”), and [Name] (the “Employee”).

WHEREAS, the Company and the Employee previously entered into a Change in Control Agreement
(the “Existing Agreement”);

WHEREAS, the Company and Employee wish to enter into this Agreement, which is an amendment and
restatement of the Existing Agreement, in order to comply with recent changes to the tax law;

WHEREAS, the Company has determined that appropriate steps should be taken to reinforce and
encourage the continued attention and dedication of key members of the Company’s management to
their assigned duties without distraction arising from the possibility of a Change in Control (as
defined below), although no such change is now contemplated;

WHEREAS, in order to induce the Employee to remain in the employ of the Company, the Company
agrees that the Employee shall receive the compensation set forth in this Agreement in the event
the Employee’s employment with the Company is terminated in connection with a Change in Control as
a cushion against the financial and career impact on the Employee of any such Change in Control;

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
hereinafter set forth and intending to be legally bound hereby, the parties hereby agree that the
Existing Agreement is amended and restated as follows:

1. Definitions. For all purposes of this Agreement, the following terms shall have
the meanings specified in this Section unless the context clearly otherwise requires:

(a) “Affiliate” and “Associate” shall have the respective meanings ascribed to
such terms in Rule 12b-2 of Regulation 12B under the Exchange Act and shall include, without
limitation, UGI Corporation and its subsidiaries.

(b) 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
Regulation 13D-G under the Exchange Act), including without limitation pursuant to any

 

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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 Proxy Rules 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 voting securities of the
Company; provided, however, that nothing in this Section 1(b) 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 40 days after the date of such acquisition.

(c) “Board” shall mean the Board of Directors of the Company.

(d) “Cause” shall mean (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 determination
of Cause shall be made by an affirmative vote of at least two-thirds of the members of the Board at
a duly called meeting of the Board.

(e) “Change in Control” shall have the meaning set forth in the attached Exhibit A to
this Agreement.

(f) “COBRA Cost” shall mean 100% of the “applicable premium” under section 4980B(f)(4)
of the Code for continued medical and dental COBRA Coverage under the Company’s benefit plans.

(g) “COBRA Coverage” shall mean continued medical and dental coverage under the
Company’s benefit plans, as determined under section 4980B of the Code.

(h) “Code” shall mean the Internal Revenue Code of 1986, as amended.

(i) “Compensation Committee” shall mean the Compensation and Management Development
Committee of the Board.

(j) “Continuation Period” shall mean the [Multiplier]-year period beginning on the
Employee’s Termination Date.

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

 

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(l) “Executive Severance Plan” shall mean the Company’s Senior Executive Employee
Severance Pay Plan, as in effect from time to time.

(m) “Good Reason Termination” shall mean a Termination of Employment initiated by the
Employee upon one or more of the following occurrences:

(i) a material breach by the Company of any terms of this Agreement, including without
limitation a material breach of Section 2 or 13 of this Agreement;

(ii) a material diminution in the authority, duties or responsibilities held by the Employee
immediately prior to the Change in Control;

(iii) a material diminution in the Employee’s base compensation as in effect immediately prior
to the Change in Control; or

(iv) a material change in the geographic location at which the Employee must perform services
(which, for purposes of this Agreement, means the Employee is required to report, other than on a
temporary basis (less than 12 months), to a location which is more than 50 miles from the
Employee’s principal place of business immediately preceding the Change in Control, without the
Employee’s express written consent).

Notwithstanding the foregoing, the Employee shall be considered to have a Good Reason
Termination only if the Employee provides written notice to the Company, pursuant to Section 3,
specifying in reasonable detail the events or conditions upon which the Employee is basing such
Good Reason Termination and the Employee provides such notice within 90 days after the event that
gives rise to the Good Reason Termination. Within 30 days after notice has been provided, the
Company shall have the opportunity, but shall have no obligation, to cure such events or conditions
that give rise to the Good Reason Termination. If the Company does not cure such events or
conditions within the 30-day period, the Employee may terminate employment with the Company based
on Good Reason Termination within 30 days after the expiration of the cure period.

(n) “Key Employee” shall mean an employee who, at any time during the 12-month period
ending on the identification date, is a “specified employee” under section 409A of the Code, as
determined by the Compensation Committee or its delegate. The determination of Key Employees,
including the number and identity of persons considered specified employees and the identification
date, shall be made by the Compensation Committee or its delegate in accordance with the provisions
of section 409A of the Code and the regulations issued thereunder.

(o) “Postponement Period” shall mean, for a Key Employee, the period of six months
after separation from service (or such other period as may be required by section 409A of the
Code), during which severance payments may not be paid to the Key Employee under section 409A of
the Code.

(p) “Release” shall mean a release of any and all claims against the Company, its
Affiliates, its Subsidiaries and all related parties with respect to all matters arising out of the
Employee’s employment by the Company and its Affiliates and Subsidiaries, or the termination

 

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thereof (other than claims relating to amounts payable under this Agreement or benefits
accrued under any plan, program or arrangement of the Company or any of its Subsidiaries or
Affiliates) and shall be in the form required by the Company of its terminating executives
immediately prior to the Change in Control.

(q) “Subsidiary” shall mean any corporation in which the Company, directly or
indirectly, owns at least a 50% interest or an unincorporated entity of which the Company, directly
or indirectly, owns at least 50% of the profits or capital interests.

(r) “Termination Date” shall mean the effective date of the Employee’s Termination of
Employment, as specified in the Notice of Termination.

(s) “Termination of Employment” shall mean the termination of the Employee’s actual
employment relationship with the Company and its Subsidiaries and Affiliates.

2. Employment. After a Change in Control, during the term of the Agreement, Executive
shall continue to serve in the same or a comparable executive position with the Company as in
effect immediately before the Change in Control, and with the same or a greater target level of
annual and long-term compensation as in effect immediately before the Change in Control.

3. Notice of Termination. Any Termination of Employment upon or following a Change in
Control shall be communicated by a Notice of Termination to the other party hereto given in
accordance with Section 14 hereof. For purposes of this Agreement, a “Notice of Termination” means
a written notice which (i) indicates the specific provision in this Agreement relied upon, (ii)
briefly summarizes the facts and circumstances deemed to provide a basis for the Employee’s
Termination of Employment under the provision so indicated, and (iii) if the Termination Date is
other than the date of receipt of such notice, specifies the Termination Date (which date shall not
be more than 15 days after the giving of such notice) except as provided in Section 1(m) above).

4. Severance Compensation upon Termination of Employment.

(a) In the event of the Employee’s involuntary Termination of Employment by the Company or a
Subsidiary or Affiliate for any reason other than Cause or in the event of a Good Reason
Termination, in either event upon or within two years after a Change in Control, the Employee will
receive the following amounts in lieu of any severance compensation and benefits under the
Executive Severance Plan or any other severance plan of the Company or a Subsidiary or Affiliate:

(i) The Company shall pay to the Employee a lump sum cash payment equal to the greater of (A)
or (B) as set forth below:

(A) The Separation Pay and Paid Notice as calculated under the terms of the Executive
Severance Plan based on the Employee’s compensation and service as of the Termination Date, or

 

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(B) [Multiplier] multiplied by the sum of (1) the Employee’s annual base salary plus (2) the
Employee’s annual bonus. The annual base salary for this purpose shall be the Employee’s annual
base salary in effect as of the Employee’s Termination Date. The annual bonus shall be calculated
for this purpose as the greater of (x) the average annual cash bonus paid to the Employee for the
three full fiscal years of the Company preceding the fiscal year in which the Termination Date
occurs or (y) the Employee’s target annual cash bonus for the fiscal year in which the Termination
Date occurs. For purposes of the preceding sentence, if the Employee has not received an annual
cash bonus for three full fiscal years, the Employee’s average annual cash bonus shall be
determined by dividing the total annual cash bonuses received by the Employee during the preceding
three full fiscal years by the number of full and fractional years for which the Employee received
an annual cash bonus during such three-year period.

(ii) The Company shall pay to the Employee a single lump sum payment equal to the COBRA Cost
that the Employee would incur if the Employee continued medical and dental coverage under the
Company’s benefit plans during the Continuation Period, based on the benefits in effect for the
Employee (and, if applicable, his or her spouse and dependents) at the Termination Date, less the
amount that the Employee would be required to contribute for medical and dental coverage if the
Employee were an active employee. The cash payment shall include a tax gross up payment equal to
75% of the lump sum amount described in the preceding sentence. The Employee may elect
continuation coverage under the Company’s applicable medical and dental plans during the
Continuation Period by paying the COBRA Cost of such coverage. COBRA Coverage shall run
concurrently with the Continuation Period, and nothing in this Section shall limit the Employee’s
right to elect COBRA Coverage for the full period permitted by law.

(iii) The Employee’s benefit under the Company’s executive retirement plan shall be calculated
as if the Employee had continued in employment during the Continuation Period, earning base salary
and bonus at the annual rate calculated under subsection (i)(B) above.

(iv) The Company shall pay to the Employee an amount equal to the Employee’s target annual
cash bonus amount for the Company’s fiscal year in which the Termination Date occurs, multiplied by
the number of months (with a partial month counting as a full month) elapsed in the fiscal year to
the Termination Date and divided by 12, as well as any amounts due but not yet paid from the prior
year under such plan.

(b) Notwithstanding the foregoing, no payments shall be made to the Employee under this
Section 4 unless the Employee signs and does not revoke a Release. The amounts described in
subsections (a) (i), (ii) and (iv) above shall be paid within 30 days after the Termination Date,
subject to the Company’s receipt of a Release and expiration of the revocation period for the
Release. Payments under this Agreement shall be made by mail to the last address provided for
notices to the Employee pursuant to Section 14 of this Agreement.

 

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5. Other Payments.

Upon any Termination of Employment entitling the Employee to payments under this Agreement,
the Employee shall receive all accrued but unpaid salary and all benefits accrued and payable under
any plans, policies and programs of the Company and its Subsidiaries or Affiliates, provided that
the Employee shall not receive severance benefits under the Executive Severance Plan or any other
severance plan of the Company or a Subsidiary or Affiliate.

6. Interest; Enforcement.

(a) If the Company shall fail or refuse to pay any amounts due the Employee under Section 4 or
11 on the applicable due date, the Company shall pay interest at the rate described below on the
unpaid payments from the applicable due date to the date on which such amounts are paid. Interest
shall be credited at an annual rate equal to the rate listed in the Wall Street Journal as the
“prime rate” as of the Employee’s Termination Date, plus 1%, compounded annually.

(b) It is the intent of the parties that the Employee not be required to incur any expenses
associated with the enforcement of the Employee’s rights under this Agreement by arbitration,
litigation or other legal action, because the cost and expense thereof would substantially detract
from the benefits intended to be extended to the Employee hereunder. Accordingly, the Company
shall pay the Employee on demand the amount necessary to reimburse the Employee in full for all
reasonable expenses (including all attorneys’ fees and legal expenses) incurred by the Employee in
enforcing any of the obligations of the Company under this Agreement. The Employee shall notify
the Company of the expenses for which the Employee demands reimbursement within 60 days after the
Employee receives an invoice for such expenses, and the Company shall pay the reimbursement amount
within 15 days after receipt of such notice.

7. No Mitigation. The Employee shall not be required to mitigate the amount of any
payment or benefit provided for in this Agreement by seeking other employment or otherwise, nor
shall the amount of any payment or benefit provided for herein be reduced by any compensation
earned by other employment or otherwise.

8. Non-Exclusivity of Rights. Nothing in this Agreement shall prevent or limit the
Employee’s continuing or future participation in or rights under any benefit, bonus, incentive or
other plan or program provided by the Company, or any of its Subsidiaries or Affiliates, and for
which the Employee may qualify.

9. No Set-Off. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any
circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or
other right which the Company may have against the Employee or others.

 

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10. Taxation. All payments under this Agreement shall be subject to all requirements
of the law with regard to tax withholding and reporting and filing requirements, and the Company
shall use its best efforts to satisfy promptly all such requirements.

11. Gross-Up Payment.

(a) Except as otherwise provided in subsection (b) below, in the event that it shall be
determined that any payment or distribution in the nature of compensation (within the meaning of
section 280G(b)(2) of the Code) to or for the benefit of the Employee, whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or otherwise (a
“Payment”), would constitute an “excess parachute payment” within the meaning of section
280G of the Code, the Company shall pay to the Employee an additional amount (the “Gross-Up
Payment”) such that the net amount retained by the Employee after deduction of any Excise Tax
(as defined below), and any federal, state and local income tax, employment tax and Excise Tax
imposed upon the Gross-Up Payment, shall be equal to the Payment. The term “Excise Tax”
means the excise tax imposed under section 4999 of the Code, together with any interest or
penalties imposed with respect to such excise tax. For purposes of determining the amount of the
Gross-Up Payment, the Employee shall be deemed to pay federal income tax and employment tax at the
highest marginal rate of federal income and employment taxation in the calendar year in which the
Gross-Up Payment is to be made and state and local income taxes at the highest marginal rate of
taxation in the state and locality of the Employee’s residence on the Termination Date, net of the
maximum reduction in federal income taxes that may be obtained from the deduction of such state and
local taxes.

(b) Notwithstanding the foregoing, the Gross-Up Payment described in subsection (a) shall not
be paid to the Employee if the aggregate Parachute Value (as defined below) of all Payments does
not exceed 110% of the Safe Harbor Amount (as defined below). The “Parachute Value” of a
Payment is the present value as of the date of the Change in Control of the portion of the Payment
that constitutes a “parachute payment” under section 280G(b)(2) of the Code, as determined by the
Accounting Firm (as defined below) in accordance with section 280G(b)(2) of the Code. The
“Safe Harbor Amount” is the maximum dollar amount of payments in the nature of compensation
that are contingent on a change in control (as described in section 280G of the Code) and that may
be paid or distributed to the Employee without imposition of the Excise Tax.

(c) In the event that the Company does not pay a Gross-Up Payment as a result of subsection
(b), the aggregate present value of the Payments under the Agreement shall be reduced (but not
below zero) to the Reduced Amount. The “Reduced Amount” shall be an amount expressed in
present value which maximizes the aggregate present value of Payments under this Agreement without
causing any Payment under this Agreement to be subject to the Excise Tax, determined in accordance
with section 280G(d)(4) of the Code. The Company shall reduce the Payments under this Agreement by
first reducing Payments that are not payable in cash and then by reducing cash Payments. Only
amounts payable under this Agreement (including without limitation amounts described in Section
4(a)(i) above) shall be reduced pursuant to this subsection (c).

 

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(d) All determinations to be made under this Section 11 shall be made by an independent
registered public accounting firm selected by the Company immediately prior to the Change in
Control (the “Accounting Firm”), which shall provide its determinations and any supporting
calculations both to the Company and the Employee within 10 days of the Change in Control. Any
such determination by the Accounting Firm shall be binding upon the Company and the Employee.

(e) The Company shall pay the applicable Gross-Up Payment as and when the Excise Tax is
incurred on a Payment. If the amount of a Gross-Up Payment cannot be fully determined by the date
on which the applicable portion of the Payment becomes subject to the Excise Tax (“Payment
Date”), the Company shall pay to the Employee by the Payment Date an estimate of such Gross-Up
Payment, as determined by the Accounting Firm, and the Company shall pay to the Employee the
remainder of such Gross-Up Payment (if any) as soon as the amount can be determined, but in no
event later than 20 days after the Payment Date. In all events, the Gross-Up Payment shall be paid
not later than date on the related taxes are remitted to the tax authorities. If for any reason
the Gross-Up Payment is subject to interest or additional tax amounts described in section
409A(a)(1)(B) or section 409A(b)(5) of the Code (“Section 409A penalties”), the amount of
the Gross-Up Payment shall be determined by taking into account any amount necessary to pay the
Section 409A penalties.

(f) In the event that upon any audit by the Internal Revenue Service, or by a state or local
taxing authority, of the Payment or Gross-Up Payment, a change is finally determined to be required
in the amount of taxes paid by the Employee, appropriate adjustments shall be made under this
Agreement such that the net amount which is payable to the Employee after taking into account the
provisions of section 280G, section 4999 and section 409A of the Code shall reflect the intent of
the parties as expressed in subsections (a), (b), (c) and (e) above, in the manner determined by
the Accounting Firm.

(g) All of the fees and expenses of the Accounting Firm in performing the determinations
referred to in this Section shall be borne solely by the Company. The Company agrees to indemnify
and hold harmless the Accounting Firm of and from any and all claims, damages and expenses
resulting from or relating to its determinations pursuant to this Section, except for claims,
damages or expenses resulting from the gross negligence or willful misconduct of the Accounting
Firm.

12. Term of Agreement. The term of this Agreement shall be for three years from the
date hereof and shall be automatically renewed for successive one-year periods unless the Company
notifies the Employee in writing that this Agreement will not be renewed at least 60 days prior to
the end of the then current term; provided, however, that (i) if a Change in Control occurs during
the term of this Agreement, this Agreement shall remain in effect for two years following such
Change in Control or until all of the obligations of the parties hereunder are satisfied or have
expired, if later, and (ii) this Agreement shall terminate if the Employee’s employment with the
Company terminates for any reason before a Change in Control (regardless of whether the Employee is
thereafter employed by a Subsidiary or Affiliate of the Company).

 

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13. Successor Company. The Company shall require any successor or successors (whether
direct or indirect, by purchase, merger or otherwise) to all or substantially all of the business
or assets of the Company, by agreement in form and substance satisfactory to the Employee, to
acknowledge expressly that this Agreement is binding upon and enforceable against the Company in
accordance with the terms hereof, and to become jointly and severally obligated with the Company to
perform this Agreement in the same manner and to the same extent that the Company would be required
to perform if no such succession or successions had taken place. Failure of the Company to notify
the Employee in writing as to such successorship, to provide the Employee the opportunity to review
and agree to the successor’s assumption of this Agreement or to obtain such agreement prior to the
effectiveness of any such succession shall be a breach of this Agreement. As used in this
Agreement, the Company shall mean the Company as defined above and any such successor or successors
to its business or assets, jointly and severally.

14. Notice. All notices and other communications required or permitted hereunder or
necessary or convenient in connection herewith shall be in writing and shall be delivered
personally or mailed by registered or certified mail, return receipt requested, or by overnight
express courier service, as follows:

If to the Company, to:

460 North Gulph Road

King of Prussia, PA 19406

Attention: Corporate Secretary

If to the Employee, to the most recent address provided by the Employee to the Company
or a Subsidiary or Affiliate for payroll purposes,

or to such other address as the Company or the Employee, as the case may be, shall designate by
notice to the other party hereto in the manner specified in this Section; provided, however, that
if no such notice is given by the Company following a Change in Control, notice at the last address
of the Company or any successor pursuant to Section 13 shall be deemed sufficient for the purposes
hereof. Any such notice shall be deemed delivered and effective when received in the case of
personal delivery, five days after deposit, postage prepaid, with the U.S. Postal Service in the
case of registered or certified mail, or on the next business day in the case of overnight express
courier service.

15. Section 409A of the Code.

(a) This Agreement is intended to meet the requirements of the “short-term deferral exception”
or another exception under section 409A of the Code. However, if the Employee is a Key Employee
and if required by section 409A of the Code, no payments or benefits under this Agreement shall be
paid to the Employee during the Postponement Period. If payment is required to be delayed for the
Postponement Period pursuant to section 409A, the accumulated amounts withheld on account of
section 409A, with interest as described in Section 6 above, shall be paid in a lump sum payment
within 15 days after the end of the Postponement Period. If the Employee dies during the Postponement Period prior to the payment of benefits, the amounts
withheld on account of section 409A, with interest as described above, shall be paid to the
Employee’s estate within 60 days after the Employee’s death.

 

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(b) Notwithstanding anything in this Agreement to the contrary, if required by section 409A,
payments may only be made under this Agreement upon an event and in a manner permitted by section
409A, to the extent applicable. As used in the Agreement, the term “termination of employment”
shall mean the Employee’s separation from service with the Company and its Subsidiaries and
Affiliates within the meaning of section 409A and the regulations promulgated thereunder. For
purposes of section 409A, the right to a series of payments under the Agreement shall be treated as
a right to a series of separate payments. In no event may the Employee designate the year of
payment for any amounts payable under the Agreement. All reimbursements and in-kind benefits
provided under the Agreement shall be made or provided in accordance with the requirements of
section 409A of the Code.

16. Governing Law. This Agreement shall be governed by and interpreted under the laws
of the Commonwealth of Pennsylvania without giving effect to any conflict of laws provisions.

17. Contents of Agreement; Amendment. This Agreement supersedes all prior agreements
with respect to the subject matter hereof (including without limitation the Existing Agreement and
any other change in control agreement in effect between the Company or a Subsidiary or Affiliate
and the Employee) and sets forth the entire understanding between the parties hereto with respect
to the subject matter hereof. This Agreement cannot be amended except pursuant to approval by the
Board and a written amendment executed by the Employee and the Chair of the Compensation Committee.
The provisions of this Agreement may require a variance from the terms and conditions of certain
compensation or bonus plans under circumstances where such plans would not provide for payment
thereof in order to obtain the maximum benefits for the Employee. It is the specific intention of
the parties that the provisions of this Agreement shall supersede any provisions to the contrary in
such plans, and such plans shall be deemed to have been amended to correspond with this Agreement
without further action by the Company or the Board.

18. No Right to Continued Employment. Nothing in this Agreement shall be construed as
giving the Employee any right to be retained in the employ of the Company or a Subsidiary or
Affiliate.

19. Successors and Assigns. All of the terms and provisions of this Agreement shall
be binding upon and inure to the benefit of and be enforceable by the respective heirs,
representatives, successors and assigns of the parties hereto, except that the duties and
responsibilities of the Employee and the Company hereunder shall not be assignable in whole or in
part.

20. Severability. If any provision of this Agreement or application thereof to anyone
or under any circumstances shall be determined to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions or applications of this Agreement which
can be given effect without the invalid or unenforceable provision or application.

 

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21. Remedies Cumulative; No Waiver. No right conferred upon the Employee by this
Agreement is intended to be exclusive of any other right or remedy, and each and every such right
or remedy shall be cumulative and shall be in addition to any other right or remedy given hereunder
or now or hereafter existing at law or in equity. No delay or omission by the Employee in
exercising any right, remedy or power hereunder or existing at law or in equity shall be construed
as a waiver thereof.

22. Miscellaneous. All section headings are for convenience only. This Agreement may
be executed in several counterparts, each of which is an original. It shall not be necessary in
making proof of this Agreement or any counterpart hereof to produce or account for any of the other
counterparts.

23. Arbitration. In the event of any dispute under the provisions of this Agreement
other than a dispute in which the sole relief sought is an equitable remedy such as an injunction,
the parties shall be required to have the dispute, controversy or claim settled by arbitration in
Montgomery County, Pennsylvania, in accordance with the commercial arbitration rules then in effect
of the American Arbitration Association, before one arbitrator who shall be an executive officer or
former executive officer of a publicly traded corporation, selected by the parties. Any award
entered by the arbitrator shall be final, binding and nonappealable and judgment may be entered
thereon by either party in accordance with applicable law in any court of competent jurisdiction.
This arbitration provision shall be specifically enforceable. The arbitrator shall have no
authority to modify any provision of this Agreement or to award a remedy for a dispute involving
this Agreement other than a benefit specifically provided under or by virtue of the Agreement. The
Company shall be responsible for all of the fees of the American Arbitration Association and the
arbitrator and any expenses relating to the conduct of the arbitration (including reasonable
attorneys’ fees and expenses).

IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this
Agreement as of the date first written above. By executing this Agreement, the undersigned
acknowledge that this Agreement replaces and supersedes the Existing Agreement and any other
understanding regarding the matters described herein.

	 	 	 	 	 
	 	 	UGI Utilities, Inc.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

	 	 	 	 	 
	 	 	 
	 	 	Employee

 

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EXHIBIT A

UGI UTILITIES, INC.

CHANGE IN CONTROL

For purposes of this Agreement, “Change in Control” shall mean:

(i) Any Person (except the Employee, his Affiliates and Associates, UGI Corporation
(“UGI”), any Subsidiary of UGI, any employee benefit plan of UGI or of any Subsidiary of
UGI, or any Person or entity organized, appointed or established by UGI or any Subsidiary of 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
stockholders 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; 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) (A) Consummation of a complete liquidation or dissolution of UGI or (B) 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; or

 

A- 1

 

(v) UGI and its Subsidiaries fail to own more than 50% of the then outstanding shares of
common stock of the Company or more than 50% of the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the election of directors; or

(vi) Consummation by the Company 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 Company’s outstanding common stock
and 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 Company’s outstanding common
stock and voting securities, as the case may be; or

(vii) Consummation of a complete liquidation or dissolution of the Company or sale or other
disposition of all or substantially all of the assets of the Company 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 Company’s outstanding common stock and voting securities
immediately prior to such sale or disposition in substantially the same proportion as their
ownership of the Company’s outstanding common stock and voting securities, as the case may be,
immediately prior to such sale or disposition.

 

A- 2Exhibit 10.2

Exhibit 10.2

UGI CORPORATION

2004 OMNIBUS EQUITY COMPENSATION PLAN

TERMS AND CONDITIONS

As amended and restated effective January 1, 2009

 

 

 

UGI Corporation

2004 Omnibus Equity Compensation Plan

Terms and Conditions

Table of Contents

	 	 	 	 	 
	Stock Options, Performance Units and Stock Units For Employees
	 	 	1	 
	 
	 	 	 	 
	1. Definitions
	 	 	1	 
	 
	 	 	 	 
	2. Options
	 	 	2	 
	 
	 	 	 	 
	3. Performance Units
	 	 	3	 
	 
	 	 	 	 
	4. Stock Units
	 	 	5	 
	 
	 	 	 	 
	5. Reduction of Responsibilities
	 	 	6	 
	 
	 	 	 	 
	6. Change of Control
	 	 	7	 
	 
	 	 	 	 
	7. French Employees
	 	 	7	 
	 
	 	 	 	 
	8. Section 409A
	 	 	7	 
	 
	 	 	 	 
	Stock Options and Stock Units for Non-Employee Directors
	 	 	8	 
	 
	 	 	 	 
	1. Definitions
	 	 	8	 
	 
	 	 	 	 
	2. Options
	 	 	9	 
	 
	 	 	 	 
	3. Award of Stock Units
	 	 	10	 
	 
	 	 	 	 
	4. Events Requiring Redemption of Stock Units
	 	 	10	 
	 
	 	 	 	 
	Exhibit A  —  Change of Control with Respect to AmeriGas
	 	 	12	 
	 
	 	 	 	 
	Exhibit B  —  Change of Control with Respect to Utilities
	 	 	15	 
	 
	 	 	 	 
	Exhibit C  —  Non-Employee Director Grants
	 	 	17	 

 

i 

 

UGI Corporation

2004 Omnibus Equity Compensation Plan

Stock Options, Performance Units and Stock Units For Employees

Terms and Conditions

The following Terms and Conditions shall be used for purposes of administering Options, Performance
Units and Stock Units granted to Employees under the Plan. The Committee has discretion to modify
or deviate from the Terms and Conditions at any time. The defined terms shall have the meanings
given those terms in the Plan or in these Terms and Conditions, if not defined in the Plan.

1. Definitions

Whenever used in these Terms and Conditions for Employees, the following terms will have the
meanings set forth below:

(a) “Account” means a bookkeeping account established on the records of the Company to record
Performance Units, Stock Units and Dividend Equivalents credited under the Plan.

(b) “AmeriGas” means AmeriGas Propane, Inc.

(c) “Code” means the Internal Revenue Code of 1986, as amended.

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

(e) “Employed by, or provide service to, the Company” shall mean employment or service as an
Employee or a Non-Employee Director (so that, for purposes of satisfying conditions with respect to
Grants, a Participant shall not be considered to have terminated employment or service until the
Participant ceases to be an Employee and Non-Employee Director).

(f) “Retirement” means an Employee’s retirement under the Retirement Income Plan for Employees
of UGI Utilities, Inc., for Employees 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.

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

 

1

 

(h) “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
Committee may determine in its sole discretion whether, and under what circumstances, a
Participant’s voluntary termination upon a significant reduction in the Participant’s duties and
responsibilities will constitute a Termination without Cause for purposes of the Plan.

(i) “Utilities” means UGI Utilities, Inc.

2. Options

(a) Grant of Options. The Committee 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. The terms of each Option shall be set forth in the Grant Letter. Unless the
Committee determines otherwise, no Dividend Equivalents will be granted with respect to Options.

(b) Exercise and Vesting.

(i) Except as otherwise specified by the Committee in the Grant Letter, each Option shall
become exercisable in equal one-third installments on the first, second and third anniversaries of
the Date of Grant. 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.

(ii) Except as otherwise specified by the Committee, in the event that a Participant holding
an Option ceases to be employed by, or provide service to, the Company, the Options held by such
Participant will terminate on the date such Participant ceases such employment or service.
However, if a Participant holding an Option ceases to be employed by, or provide service to, the
Company by reason of (i) Termination without Cause, (ii) Retirement, (iii) Disability, or (iv)
death, the Option held by the Participant will thereafter be exercisable pursuant to the following:

(A) Termination Without Cause. If a Participant terminates employment or service 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 the Option is already
exercisable on the date such Participant’s employment or service 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 Participant ceases to be employed by, or provide service to, the
Company.

(B) Retirement. If a Participant ceases to be employed by, or provide service to, the Company
on account of Retirement, the Option held by such Participant will thereafter become exercisable as
if such Participant had continued to provide service to the Company for 36 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 36-month period.

 

2

 

(C) Disability. If a Participant ceases to be employed by, or provide service to, the Company
by reason of Disability, the Option held by such Participant will thereafter become exercisable as
if such Participant had continued to provide service to the Company for 36 months after the date of
such termination of employment or service. The Option will terminate upon the earlier of the
expiration date of the Option or the expiration of such 36-month period.

(D) Death. In the event of the death of a Participant while employed by, or providing service
to, the Company, the Option held by such Participant will be fully and immediately exercisable and
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. Death of a Participant after
the Participant has ceased to be employed by, or provide service to, the Company will not affect
the otherwise applicable period for vesting and exercise of the Option determined pursuant to
subsections (A), (B) or (C) above. After a Participant’s death, the Participant’s Option may be
exercised by the Participant’s estate.

(c) Payment. An Option may be exercised, and the Option Price paid, in any method permitted
by the Plan.

(d) Change of Control. All outstanding Options shall become fully vested upon a Change of
Control.

3. Performance Units

(a) Grant of Performance Units. The Committee will select the Employees who will receive
Performance Units and will determine the number of shares subject to Performance Units and the
terms of the Performance Units. Unless the Committee determines otherwise, Dividend Equivalents
will be granted with respect to Performance Units. The Committee shall specify in the Grant Letter
for Performance Units the terms and conditions of the Performance Units and the applicable
restrictions and performance goals, including the objective goals, employment requirements, period
during which the Performance Units shall be subject to restrictions and other conditions of the
Grant.

(b) Terms. The Committee will establish performance goals and terms for Performance Units in
accordance with Section 13 of the Plan. The Committee will establish appropriate threshold, Target
Amount and maximum payments to be made with respect to the Performance Units.

 

3

 

(c) Requirements of Employment or Service. If the Participant ceases to be employed by, or
provide service to, the Company during the applicable period specified in the Grant Letter, all of
the Participant’s the 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, Disability or
death, the restrictions on a pro-rata portion of the Participant’s outstanding Performance Units
will lapse at the end of the restriction 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 Performance Unit,
as the amount that would otherwise be paid according to the terms of the Performance Unit, based on
achievement of the performance goals, 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 Performance Units. For purposes of the proration
calculation, the year in which the Participant’s Retirement, Disability, or death occurs will be
counted as a full year.

(ii) In the event of Retirement, Disability or death, the prorated portion of the Performance
Units shall be paid at the date specified for payment of the Performance Units in the Grant Letter,
or at an earlier date determined by the Committee in the Grant Letter.

(d) Payment of Performance Units. If the Committee determines that the conditions to payment
of the Performance Units have been met, the Company shall pay to the Participant, within 21/2 months
after the end of the restriction period, (i) shares of Stock or cash, or a combination of the two,
as the Committee determines, equal to the amount to be paid according to achievement of the
performance goals, up to the target award specified in the Participant’s Grant Letter and (ii) cash
in an amount equal to the Fair Market Value of the shares of Stock underlying the Performance Units
for any amounts payable in excess of the target amount specified by the Committee for the
Performance Units.

(e) Coordination with Severance Plan. Notwithstanding any other provisions of these Terms and
Conditions, 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 Performance Units and 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.

(f) Dividend Equivalents with Respect to Performance Units. Dividend Equivalents, if granted,
shall accrue with respect to Performance Units and shall be payable subject to the same performance
goals and terms as the Performance Units to which they relate. Dividend Equivalents shall be
credited with respect to Performance Units from the Date of Grant until the date on which the
Performance Units are paid. If and to the extent that the underlying Performance Units are
forfeited, all related Dividend Equivalents shall also be forfeited.

(g) Accounts. While Performance Units are outstanding, the Company will keep records in an
Account for each Participant who holds Performance Units. On each payment date for a dividend paid
by UGI on its Stock, the Company shall credit to the Participant’s Account an amount equal to the
Dividend Equivalents associated with the Performance Units held by the Participant on the record
date for the dividend. No interest will be credited to any such Account. Notwithstanding the
foregoing, a Participant may not accrue Dividend Equivalents in excess of $750,000 during any
calendar year.

 

4

 

(h) Payment of Dividend Equivalents. Dividend Equivalents will be paid after the performance
goals and other requirements specified in the Grant Letter have been met, at the same time as the
underlying Performance Units are paid or as otherwise determined by the Committee. Dividend
Equivalents will be paid in cash, Stock or a combination of the two, as the Committee determines.

(i) Change of Control. Upon a Change of Control, all outstanding Performance Units and
Dividend Equivalents shall be paid in cash in an amount equal to the greater of (i) the target
amount or (ii) the amount earned as of the date of the Change of Control based on the Company’s
achievement of the performance goals as of the Change of Control, as determined by the Committee.
If a former Participant is entitled to receive a prorated award for the restriction period pursuant
to Section 3(c) above, the award will be the prorated portion of the amount described in the
preceding sentence. The Performance Units and Dividend Equivalents shall be paid on the closing
date of the Change of Control.

4. Stock Units

(a) Grants of Stock Units. The Committee will select the Employees who will receive Stock
Units and will determine the number of shares subject to Stock Units and the terms of the Stock
Units. Unless the Committee determines otherwise, Dividend Equivalents will be granted with
respect to Stock Units. The Committee shall specify in the Participant’s Grant Letter the terms
and conditions of the Stock Units and the applicable restrictions, including the period during
which the Stock Units will be subject to vesting requirements, if any, and other conditions of the
Grant.

(b) Vesting of Stock Units. Stock Units will vest on such terms as the Committee determines
and specifies in the Grant Letter. If the Participant ceases to be employed by, or provide service
to the Company, any unvested Stock Units will immediately terminate, except as provided below. The
Committee may authorize payment of Stock Units on a prorated or other basis in such circumstances
as the Committee deems appropriate, including in the event that a Participant ceases to be employed
by, or provide service to, the Company, on account of Retirement, Disability or death.

(c) Payment of Stock Units. A Participant will receive payment with respect to Stock Units
as the Stock Units vest, within 30 business days after the vesting date. Payment shall be made in
Stock, in cash or in a combination of the two, as determined by the Committee.

(d) Coordination with Severance Plan. Notwithstanding any other provisions of these Terms and
Conditions, 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 Stock Units and 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, if permitted by section 409A of the Code.

 

5

 

(e) Dividend Equivalents with Respect to Stock Units. Dividend Equivalents, if granted, shall
accrue with respect to Stock Units and shall be payable subject to the same terms as the Stock
Units to which they relate. Dividend Equivalents shall be credited with respect to Stock Units
from the Date of Grant until the date on which the Stock Units are paid. If the underlying Stock
Units are forfeited, all related Dividend Equivalents shall also be forfeited.

(f) Accounts. While Stock Units are outstanding, the Company will keep records in an Account
for each Participant who holds Stock Units. On each payment date for a dividend paid by UGI on its
Stock, the Company shall credit to the Participant’s Account an amount equal to the Dividend
Equivalents associated with the Stock Units held by the Participant on the record date for the
dividend. No interest will be credited to any such Account. Notwithstanding the foregoing, a
Participant may not accrue Dividend Equivalents in excess of $750,000 during any calendar year.

(g) Payment of Dividend Equivalents. Dividend Equivalents will be paid after the vesting and
other requirements specified in the Grant Letter have been met, at the same time as the underlying
Stock Units are paid or as otherwise determined by the Committee. Dividend Equivalents will be
paid in cash, Stock or a combination of the two, as the Committee determines.

(h) Change of Control. All outstanding Stock Units shall become fully vested upon a Change of
Control and shall be paid in cash on the closing date of the Change of Control. All Dividend
Equivalents shall become fully vested and paid when the underlying Stock Units are paid.
Notwithstanding the foregoing, if the Stock Units are subject to section 409A of the Code, the
Stock Units shall be paid upon a Change of Control only if the transaction constituting a Change of
Control is also a change in control event under section 409A of the Code (“409A Change in Control
Event”). If the transaction constituting a Change of Control does not constitute a 409A Change in
Control Event, the outstanding Stock Units will vest upon the Change of Control, and any
outstanding Stock Units that are subject to section 409A will be paid in cash (based on the value
of the Stock Units on the payment date as determined by the Committee) within 30 days after the
first to occur of (i) the vesting date set forth in the Participant’s Grant Letter or (ii) the
Participant’s termination of employment or service (subject to the section 409A six-month delay, if
applicable). If payment is delayed after the Change of Control, the Committee may provide for the
Stock Units to be valued as of the date of the Change of Control and interest to be credited on the
amount so determined at a market rate for the period between the Change of Control date and the
payment date.

5. Reduction of Responsibilities

The Committee shall have discretion to adjust a Participant’s Options that are not yet
exercisable and a Participant’s outstanding Performance Units and Stock Units, if the Participant’s
authority, duties or responsibilities are significantly reduced.

 

6

 

6. Change of Control

(a) Authorization. In the event of a Change of Control, the provisions of Sections 2(d), 3(i)
and 4(h) above shall apply to Options, Performance Units and Stock Units, and the
Committee may take such other actions with respect to outstanding Options as it deems
appropriate pursuant to the Plan. The term “Change of Control” shall mean a Change of Control of
UGI, as defined in the Plan, except as provided below.

(b) AmeriGas Employees. For Participants who are employees of AmeriGas, or a subsidiary of
AmeriGas, the term “Change of Control” shall mean (i) a Change of Control of UGI, as defined in the
Plan, or (ii) one of the events set forth in Exhibit A with respect to AmeriGas.

(c) Utilities Employees. For Participants who are employees of Utilities or a subsidiary of
Utilities, the term “Change of Control” shall mean (i) a Change of Control of UGI as defined in the
Plan, or (ii) one of the events set forth on Exhibit B with respect to Utilities.

(d) Other Subsidiaries. The Committee may determine in a Grant Letter that a sale or other
transaction with respect to any other Company subsidiary shall be considered a Change of Control
for purposes of the Plan, for Participants who are employees of that subsidiary.

7. French Employees. The terms of the Sub-Plan for French Employees shall apply to the
grant of Options to Employees who are, or may become, subject to taxation on compensation in
France.

8. Section 409A. Performance Units, Stock Units and Dividend Equivalents shall meet the
requirements of section 409A of the Code or an exemption from such requirements.

 

7

 

UGI Corporation

2004 Omnibus Equity Compensation Plan

Stock Options and Stock Units For Non-Employee Directors

Terms and Conditions

The following Terms and Conditions shall be used for purposes of administering Options and Stock
Units granted to Non-Employee Directors under the Plan. The Terms and Conditions are being amended
and restated to allow Non-Employee Directors to defer their Stock Units to the UGI Corporation 2009
Deferral Plan, effective as of January 1, 2009. The Committee has discretion to modify or deviate
from the Terms and Conditions at any time. The defined terms shall have the meanings given those
terms in the Plan or in these Terms and Conditions, if not defined in the Plan.

1. Definitions

Whenever used in these Terms and Conditions for Non-Employee Directors, the following terms
will have the meanings set forth below:

(a) “Account” means the Company’s record established pursuant to Section 3, which reflects the
number of Stock Units and the amount of Dividend Equivalents standing to the credit of a
Participant under the Plan.

(b) “Beneficiary” means the person designated by a Non-Employee Director to receive any
benefits payable after the Non-Employee Director’s death. The Company shall provide a form for
this purpose. In the event a Non-Employee Director has not filed a Beneficiary designation with
the Company or none of the designated Beneficiaries are living at the date of the Non-Employee
Director’s death, the Beneficiary shall be the Non-Employee Director’s estate.

(c) “Committee” means, for purposes of Grants to Non-Employee Directors, the Board or its
delegate.

(d) “Deferral Plan” means the UGI Corporation 2009 Deferral Plan.

(e) “Plan Year” means the calendar year.

(f) “Retirement” means a Non-Employee Director’s Separation from Service 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.

(g) “Separates from Service” means the Non-Employee Director’s termination of service as a
Non-Employee Director and as an Employee of the Company for any reason other than death.

 

8

 

(h) “Unit Value” means, at any time, the value of each Unit issued under the Plan, which value
shall be equal to the Fair Market Value of a share of Stock on such date.

2. Options

(a) Grant of Options. The Board shall grant Options annually to Non-Employee Directors in the
amounts set forth on the attached Exhibit C, on the fifth business day of each Plan Year. The
Option Price will equal the Fair Market Value on the Date of Grant.

(b) Exercise and Vesting. Except as otherwise specified in the Grant Letter, an Option will
be fully and immediately exercisable on the Date of Grant. In the event that any 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.

(c) Separation from Service. 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 Separates from Service. However, if a Participant holding an Option Separates from
Service by reason of retirement, disability, or death, the Option held by any such Participant will
be fully and immediately exercisable and will thereafter be exercisable pursuant to the following:

(1) Retirement. If a Participant Separates from Service on account of Retirement, the Option
held by 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.

(2) Disability. 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 held by 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 Separation
from Service on account of disability.

(3) Death. In the event of the death of a Participant while serving as a Non-Employee
Director or Employee of the Company, the Option held by 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 Participant’s
estate.

(d) Payment. An Option may be exercised, and the Option Price paid, in any method permitted
by the Plan.

 

9

 

3. Award of Stock Units

(a) Annual Award of Stock Units. On the fifth business day of each Plan Year, each
Non-Employee Director shall receive an award of Stock Units in the amount set forth on the attached
Exhibit C. Such Stock Units shall be credited to each Participant’s Account as specified in
Section 3(c) below. Any Non-Employee Director who becomes a Non-Employee Director
after the fifth business day of the Plan Year shall receive, on the date such individual
becomes a Non-Employee Director, a pro-rata share of the annual award of Stock Units determined
based on the number of calendar quarters during the Plan Year that he or she is expected to serve
as a Non-Employee Director. A Non-Employee Director will be deemed to serve for the entire quarter
if he or she is a Non-Employee Director on at least one day of the quarter.

(b) Dividend Equivalents

(i) Dividend Equivalent to be Credited. From the Date of Grant of each Stock Unit until the
Participant’s Account has been fully distributed, on each payment date for a dividend paid by UGI
on its Stock, the Company shall credit to each Participant’s Account an amount equal to the
Dividend Equivalent associated with the Stock Units held by the Participant on the record date for
the dividend.

(ii) Conversion to Stock Units. On the last day of each Plan Year, the amount of the Dividend
Equivalents credited to the Participant’s Account during that Plan Year shall be converted to a
number of Stock Units, based on the Unit Value on the last day of the Plan Year. Notwithstanding
the foregoing, in the event of a Change of Control or in the event the Non-Employee Director dies
or Separates from Service prior to the last day of the Plan Year, as soon as practicable following
such event and in no event later than the date on which Stock Units are redeemed in accordance with
Section 4, the Company shall convert the amount of the Dividend Equivalents credited to the
Participant’s Account as of the date of the Change of Control, death or Separation from Service
(the “Conversion Date”) to a number of Stock Units based on the Unit Value on the Conversion Date.

(c) Accounts. The Company shall keep records to reflect the number of Stock Units and
Dividend Equivalents credited to each Non-Employee Director hereunder. Fractional Stock Units shall
accumulate in the Participant’s Account and shall be added to fractional Stock Units held in such
Account to create whole Stock Units.

(d) Directors’ Equity Compensation Plan. On and after the Effective Date, Dividend
Equivalents shall be credited and paid on all Stock Units that are outstanding under the Directors’
Equity Plan on the Effective Date, on the same terms as described in this Section 3 and Section 4
below. All Units outstanding under the Directors’ Equity Plan on the Effective Date, including
accrued Dividend Equivalents, shall be paid according to Section 4 below.

4. Events Requiring Redemption of Stock Units

The Company shall redeem Stock Units credited to a Participant’s Account only at the times and
in the manner prescribed by the terms of this Section 4

(a) Death. In the event a Participant dies, the Company shall redeem all of the Stock Units
then credited to the Participant’s Account as of the date of the Participant’s death, based on the
Unit Value of the Stock Units credited to the Participants’ Account as of the date of the
Participant’s death. An amount equal to 65% of the aggregate Unit Value will be paid in the form
of whole Shares (with fractional Shares paid in cash), and the remaining 35% of the aggregate Unit
Value will be paid in cash. The redemption amount shall be paid to the Participant’s estate within
60 business days after the Participant’s death.

 

10

 

(b) Separation from Service. In the event a Participant Separates from Service, the Company
shall redeem all of the Stock Units then credited to the Participant’s Account as of the date of
such Separation from Service, based on the Unit Value of the Stock Units credited to the
Participant’s Account as of the date of the Participant’s Separation from Service. An amount equal
to 65% of the aggregate Unit Value will be paid in the form of whole Shares (with fractional Shares
paid in cash), and the remaining 35% of the aggregate Unit Value will be paid in cash, within 30
business days after the date of the Participant’s Separation from Service.

(c) Change of Control. In the event of a Change of Control, the Company shall redeem all the
Stock Units then credited to the Participant’s Account. The redemption amount shall be paid in
cash on the closing date of the Change of Control (except as described below). The amount paid
shall equal the product of the number of Stock Units being redeemed multiplied by the Unit Value at
the date of the Change of Control. However, in the event that the transaction constituting a
Change of Control is not a change in control event under section 409A of the Code, the
Participant’s Stock Units shall be redeemed and paid in cash upon Separation from Service or death
on the applicable date described in subsection (a) or (b) above (based on the aggregate Unit Value
on the date of Separation from Service or death as determined by the Committee), instead of upon
the Change of Control pursuant to this subsection (c). If payment is delayed after the Change of
Control, pursuant to the preceding sentence, the Committee may provide for the Stock Units to be
valued as of the date of the Change of Control and interest to be credited on the amount so
determined at a market rate for the period between the Change of Control date and the payment date.

(d) Effect on Outstanding Stock Units and Dividend Equivalents. The provisions of this
Section 4 relating to the medium of payment (i.e., payment in cash or in a combination of
cash and Shares) shall apply to all outstanding Stock Units and Dividend Equivalents.

(e) Section 409A. Stock Units and Dividend Equivalents shall meet the requirements of section
409A of the Internal Revenue Code or an exemption from such requirements. All Stock Units and
Dividend Equivalents that were earned and vested as of December 31, 2004 shall be administered in
accordance with their terms as in effect on October 3, 2004, except for changes that are not
considered “material modifications” under the regulations issued under section 409A of the Internal
Revenue Code.

(f) Deferral Elections. Notwithstanding the foregoing, a Non-Employee Director may make a
one-time, irrevocable election to elect to have all of the Non-Employee Director’s Stock Units
credited to the Non-Employee Director’s account under the Deferral Plan on the date of the
Non-Employee Director’s Separation from Service, in lieu of the redemption and payments described
in subsections (a), (b) and (c). If the Non-Employee Director makes a deferral election, the
Non-Employee Director’s Stock Units will be credited to the Non-Employee Director’s account under
the Deferral Plan at Separation from Service and the amount credited to the Deferral Plan shall be
distributed in accordance with the provisions of the Deferral Plan. If the Non-Employee Director
makes a deferral election and a Change of Control occurs: (i) subsection (c) above shall apply if
the Change of Control occurs before the Non-Employee Director’s Separation from Service and (ii)
the terms of the Deferral Plan shall apply if the Change of Control occurs after or simultaneously
with the Non-Employee Director’s Separation from Service. An election under this subsection (f)
shall be made in writing, on a form and at a time prescribed by the Committee and shall be irrevocable upon submission to the
Corporate Secretary.

 

11

 

Exhibit A

Change of Control with Respect to AmeriGas

For Participants who are employees of AmeriGas, or a subsidiary of AmeriGas, the term “Change of
Control” shall include the events set forth in this Exhibit A with respect to AmeriGas, and the
defined terms used in this Exhibit A shall have the following meanings:

1. “Change of Control” shall include any of the following events:

(A) Completion by AmeriGas, the Public Partnership or the Operating Partnership of a
reorganization, merger or consolidation (a “Propane 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 AmeriGas voting securities or of the outstanding units of AmeriGas
Partners, L.P. (“Outstanding Units”) immediately prior to such Propane Business Combination do not,
following such Propane Business Combination, Beneficially Own, directly or indirectly, (a) if the
entity resulting from such Propane Business Combination is a corporation, more than fifty percent
(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 such corporation in substantially the same proportion as their ownership
immediately prior to such Combination of the AmeriGas’ voting securities or the Outstanding Units,
as the case may be, or, (b) if the entity resulting from such Propane Business Combination is a
partnership, more than fifty percent (50%) of the then outstanding common units of such partnership
in substantially the same proportion as their ownership immediately prior to such Propane Business
Combination of AmeriGas’ voting securities or the Outstanding Units, as the case may be; or

(B) (a) Completion of a complete liquidation or dissolution of AmeriGas, the Public
Partnership or the Operating Partnership or (b) sale or other disposition of all or substantially
all of the assets of AmeriGas, the Public Partnership or the Operating Partnership other than to an
entity with respect to which, following such sale or disposition, (I) if such entity is a
corporation, more than fifty percent (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 AmeriGas’ voting securities or of the Outstanding Units, as the case may be, immediately prior
to such sale or disposition in substantially the same proportion as their ownership of AmeriGas’
voting securities or of the Outstanding Units, as the case may be, immediately prior to such sale
or disposition, or, (II) if such entity is a partnership, more than fifty percent (50%) of the then
outstanding common units is then owned beneficially, directly or indirectly, by all or
substantially all of the individuals and entities who were the Beneficial Owners, respectively, of
AmeriGas’ voting securities or of the Outstanding Units, as the case may be, immediately prior to
such sale or disposition in substantially the same proportion as their
ownership of AmeriGas’ voting securities or of the Outstanding Units immediately prior to such
sale or disposition; or

 

12

 

(C) UGI and the UGI Subsidiaries fail to own more than fifty percent (50%) of the then
outstanding general partnership interests of the Public Partnership or the Operating Partnership;
or

(D) UGI and the UGI Subsidiaries fail to own more than fifty percent (50%) of the then
outstanding shares of common stock of AmeriGas or more than fifty percent (50%) of the combined
voting power of the then outstanding voting securities of AmeriGas entitled to vote generally in
the election of directors; or

(E) AmeriGas is removed as the general partner of the Public Partnership by vote of the
limited partners of the Public Partnership, or is removed as the general partner of the Public
Partnership or the Operating Partnership as a result of judicial or administrative proceedings
involving AmeriGas, the Public Partnership or the Operating Partnership.

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.

 

13

 

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

5. “Operating Partnership” shall mean AmeriGas Propane, L.P.

6. “Public Partnership” shall mean AmeriGas Partners, L.P.

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

8. “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.

 

14

 

Exhibit B

Change of Control with Respect to Utilities

For Participants who are employees of Utilities, or a subsidiary of Utilities, the term “Change of
Control” shall include the events set forth in this Exhibit B with respect to Utilities, and the
defined terms set forth used in this Exhibit B, if not defined in the Plan, shall have the
following meanings:

1. “Change of Control” shall include any of the following events:

(A) UGI and the UGI Subsidiaries fail to own more than fifty percent (50%) of the then
outstanding shares of common stock of Utilities or more than fifty percent (50%) of the combined
voting power of the then outstanding voting securities of Utilities entitled to vote generally in
the election of directors; or

(B) Completion by Utilities 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 Utilities’ outstanding common stock and
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 Utilities’ outstanding common stock and
voting securities, as the case may be; or

(C) Completion of a complete liquidation or dissolution of the Utilities or sale or other
disposition of all or substantially all of the assets of Utilities 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 Utilities’ outstanding common stock and voting securities
immediately prior to such sale or disposition in substantially the same proportion as their
ownership of Utilities’ outstanding common stock and 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.

 

15

 

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.

 

16

 

Exhibit C

Non-Employee Director Grants

Options:

8,500 shares

Grant Date: 5th business day of January

Stock Units:

2,550 units

Grant Date: 5th business day of January

 

17

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