Document:

exv10w17

 

Exhibit 10.17

UGI CORPORATION

2004 OMNIBUS EQUITY COMPENSATION PLAN

As amended on May 24, 2005

 

 

 

UGI CORPORATION

2004 OMNIBUS EQUITY COMPENSATION PLAN

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	1.
	 	Purpose	 	 	1	 
	 
	 	 	 	 	 	 
	2.
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	3.
	 	Administration	 	 	3	 
	 
	 	 	 	 	 	 
	4.
	 	Grants	 	 	4	 
	 
	 	 	 	 	 	 
	5.
	 	Shares Subject to the Plan	 	 	4	 
	 
	 	 	 	 	 	 
	6.
	 	Eligibility for Participation	 	 	5	 
	 
	 	 	 	 	 	 
	7.
	 	Options	 	 	6	 
	 
	 	 	 	 	 	 
	8.
	 	Stock Units	 	 	7	 
	 
	 	 	 	 	 	 
	9.
	 	Performance Units	 	 	7	 
	 
	 	 	 	 	 	 
	10.
	 	Stock Awards	 	 	8	 
	 
	 	 	 	 	 	 
	11.
	 	Dividend Equivalents	 	 	8	 
	 
	 	 	 	 	 	 
	12.
	 	Other Stock-Based Awards	 	 	9	 
	 
	 	 	 	 	 	 
	13.
	 	Qualified Performance-Based Compensation	 	 	9	 
	 
	 	 	 	 	 	 
	14.
	 	Directors' Equity Plan	 	 	10	 
	 
	 	 	 	 	 	 
	15.
	 	Deferrals	 	 	10	 
	 
	 	 	 	 	 	 
	16.
	 	Withholding of Taxes	 	 	10	 
	 
	 	 	 	 	 	 
	17.
	 	Transferability of Grants	 	 	11	 
	 
	 	 	 	 	 	 
	18.
	 	Consequences of a Change of Control	 	 	11	 
	 
	 	 	 	 	 	 
	19.
	 	Requirements for Issuance of Shares	 	 	12	 
	 
	 	 	 	 	 	 
	20.
	 	Amendment and Termination of the Plan	 	 	12	 
	 
	 	 	 	 	 	 
	21.
	 	Miscellaneous	 	 	13	 
	 
	 	 	 	 	 	 

 i 

 

 

 

UGI CORPORATION

2004 OMNIBUS EQUITY COMPENSATION PLAN

Amended as of May 24, 2005

1. Purpose

The purpose of the UGI Corporation 2004 Omnibus Equity Compensation Plan (the “Plan”) is to
provide (i) designated employees of UGI Corporation (“UGI”) and its subsidiaries, and (ii)
non-employee members of the board of directors of UGI with the opportunity to receive grants of
stock options, stock units, performance units, stock awards, dividend equivalents and other
stock-based awards. UGI believes that the Plan will encourage the participants to contribute
materially to the growth of UGI, thereby benefitting UGI’s shareholders, and will align the
economic interests of the participants with those of the shareholders.

The Plan was adopted effective as of January 1, 2004, and was approved by the shareholders of
UGI. The UGI Corporation Directors’ Equity Compensation Plan was merged into the Plan as of the
Effective Date. The Plan was amended in December 2004 and is now amended as of May 24, 2005 to
reflect a Stock split.

2. Definitions

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

(a) “Board” means UGI’s Board of Directors as constituted from time to time.

(b) "Certificate” means a certificate, or electronic book entry equivalent, for a share of
Stock.

(c) “Change of Control” means a change of control of UGI as described on the attached Exhibit
A, or as modified by the Board from time to time.

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

(e) “Committee” means (i) with respect to Grants to Employees, the Compensation and Management
Development Committee of the Board or its successor, and (ii) with respect to Grants made to
Non-Employee Directors, the Board or its delegate.

(f) “Company” means UGI and any Subsidiary.

(g) “Date of Grant” means the effective date of a Grant; provided, however, that no
retroactive Grants will be made.

(h) "Directors’ Equity Plan” means the UGI Corporation Directors’ Equity Compensation Plan.

 

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(i) “Dividend Equivalent” means an amount determined by multiplying the number of shares of
Stock subject to a Grant by the per-share cash dividend, or the per-share fair market value (as
determined by the Committee) of any dividend in consideration other than cash, paid by UGI on its
Stock.

(j) "Effective Date” of the Plan means January 1, 2004, subject to approval of the Plan by the
shareholders of UGI.

(k) “Employee” means an employee of the Company (including an officer or director who is also
an employee). For purposes of the Plan, the term “Employee” shall also include a chief executive
officer or other officer or person who performs management and policymaking functions with respect
to a Subsidiary of UGI located outside the United States.

(l) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

(m) “Fair Market Value” of Stock means the average, rounded to one cent ($0.01), of the
highest and lowest sales prices of a share of Stock on the New York Stock Exchange on the day on
which Fair Market Value is being determined, as reported on the composite tape for transactions on
the New York Stock Exchange. In the event that there are no Stock transactions on the New York
Stock Exchange on such day, the Fair Market Value will be determined as of the immediately
preceding day on which there were Stock transactions on that exchange. Notwithstanding the
foregoing, in the case of a broker-assisted exercise pursuant to Section 7(f), the Fair Market
Value will be the actual sale price of the shares issued upon exercise of the Option.

(n) “Grant” means an Option, Stock Unit, Performance Unit, Stock Award, Dividend Equivalent or
Other Stock-Based Award granted under the Plan.

(o) “Grant Letter” means the written instrument that sets forth the terms and conditions of a
Grant, including all amendments thereto.

(p) “Non-Employee Director” means a member of the Board who is not an employee of the Company.

(q) “Option” means an option to purchase shares of Stock, as described in Section 7.

(r) “Option Price” means an amount per share of Stock purchasable under an Option, as
designated by the Committee.

(s) “Other Stock-Based Award” means any Grant based on, measured by or payable in Stock (other
than Grants described in Sections 7, 8, 9, 10 and 11 of the Plan) as described in Section 12.

(t) “Participant” means an Employee or Non-Employee Director designated by the Committee to
participate in the Plan.

 

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(u) “Performance Unit” means an award of a phantom unit representing a share of Stock, as
described in Section 9.

(v) “Plan” means this 2004 Omnibus Equity Compensation Plan, as in effect from time to time.

(w) “Stock” means the common stock of UGI or such other securities of UGI as may be
substituted for Stock pursuant to Section 5(d) or Section 18.

(x) “Stock Award” means an award of Stock as described in Section 10.

(y) “Stock Unit” means an award of a phantom unit representing a share of Stock, as described
in Section 8.

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

(aa) "Target Amount” means a target number of Shares to be issued based on achievement of the
performance goals and satisfaction of all conditions for payment of Performance Units at the 100%
level.

(bb) “UGI” means UGI Corporation, a Pennsylvania corporation or any successor thereto.

3. Administration

(a) Committee. The Plan shall be administered and interpreted by the Compensation and
Management Development Committee of the Board or its successor with respect to grants to Employees.
The Plan shall be administered and interpreted by the Board, or by a committee of directors to
whom the Board has delegated responsibility, with respect to grants to Non-Employee Directors. The
Board or committee, as applicable, that has authority with respect to a specific Grant shall be
referred to as the “Committee” with respect to that Grant. Ministerial functions may be performed
by an administrative committee comprised of Company employees appointed by the Committee.

(b) Committee Authority. The Committee shall have the sole authority to (i) determine
the Participants to whom Grants shall be made under the Plan, (ii) determine the type, size and
terms and conditions of the Grants to be made to each such Participant, (iii) determine the time
when the grants will be made and the duration of any applicable exercise or restriction period,
including the criteria for exercisability and the acceleration of exercisability, (iv) amend the
terms and conditions of any previously issued Grant, subject to the provisions of Section 19 below,
and (v) deal with any other matters arising under the Plan.

 

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(c) Committee Determinations. The Committee shall have full power and express
discretionary authority to administer and interpret the Plan, to make factual determinations and to
adopt or amend such rules, regulations, agreements and instruments for implementing the Plan and for the conduct of its business as it deems necessary or advisable, in its sole
discretion. The Committee’s interpretations of the Plan and all determinations made by the
Committee pursuant to the powers vested in it hereunder shall be conclusive and binding on all
persons having any interest in the Plan or in any awards granted hereunder. All powers of the
Committee shall be executed in its sole discretion, in the best interest of the Company, not as a
fiduciary, and in keeping with the objectives of the Plan and need not be uniform as to similarly
situated Participants.

4. Grants

(a) Grants under the Plan may consist of Options as described in Section 7, Stock Units as
described in Section 8, Performance Units as described in Section 9, Stock Awards as described in
Section 10, Dividend Equivalents as described in Section 11 and Other Stock-Based Awards as
described in Section 12. All Grants shall be subject to such terms and conditions as the Committee
deems appropriate and as are specified in writing by the Committee to the Participant in the Grant
Letter.

(b) All Grants shall be made conditional upon the Participant’s acknowledgement, in writing or
by acceptance of the Grant, that all decisions and determinations of the Committee shall be final
and binding on the Participant, his or her beneficiaries and any other person having or claiming an
interest under such Grant. Grants under a particular Section of the Plan need not be uniform as
among the Participants.

(c) The Committee may make Grants that are contingent on, and subject to, shareholder approval
of the Plan or an amendment to the Plan.

5. Shares Subject to the Plan

(a) Shares Authorized. The total aggregate number of shares of Stock that may be
issued under the Plan is 7,000,000 shares (after giving retroactive effect to the 2-for-1 Stock
split distributed May 24, 2005), subject to adjustment as described below. The maximum number of
shares of Stock that may be issued under the Plan pursuant to Grants other than Options and
Dividend Equivalents during the term of the Plan is 1,600,000 shares (after giving retroactive
effect to the 2-for-1 Stock split distributed May 24, 2005), subject to adjustment as described
below. The shares may be authorized but unissued shares of Stock or reacquired shares of Stock,
including shares purchased by the Company on the open market for purposes of the Plan. Grants paid
in cash shall not count against the foregoing share limits.

(b) Share Counting. For administrative purposes, when the Committee makes a Grant
payable in Stock, the Committee shall reserve shares equal to the maximum number of shares that may
be issued under the Grant. If and to the extent Options granted under the Plan terminate, expire,
or are canceled, forfeited, exchanged or surrendered without having been exercised, and if and to
the extent that any Stock Awards, Stock Units, Performance Units, Dividend Equivalents or Other
Stock-Based Awards are forfeited or terminated, or otherwise are not paid in full, the shares
reserved for such Grants shall again be available for purposes of the Plan. Shares of Stock
surrendered in payment of the Option Price of an Option shall again be
available for issuance under the Plan. To the extent that Grants are paid in cash, and not in
shares of Stock, any shares previously reserved for issuance pursuant to such Grants shall again be
available for issuance under the Plan.

 

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(c) Individual Limits. All Grants under the Plan, other than Dividend Equivalents,
shall be expressed in shares of Stock. The maximum aggregate number of shares of Stock with
respect to which all Grants, other than Dividend Equivalents, may be made under the Plan to any
individual during any calendar year shall be 1,500,000 shares (after giving retroactive effect to
the 2-for-1 Stock split distributed May 24, 2005), subject to adjustment as described below. The
maximum aggregate number of shares of Stock with respect to which all Grants, other than Options
and Dividend Equivalents, may be made under the Plan to any individual during any calendar year
shall be 200,000 shares (after giving retroactive effect to the 2-for-1 Stock split distributed May
24, 2005), subject to adjustment as described below. A Participant may not accrue Dividend
Equivalents during any calendar year in excess of $1,000,000. The individual limits of this
subsection (b) shall apply without regard to whether the Grants are to be paid in Stock or cash.
All cash payments (other than with respect to Dividend Equivalents) shall equal the Fair Market
Value of the shares of Stock to which the cash payment relates.

(d) Adjustments. If there is any change in the number or kind of shares of Stock
outstanding (i) by reason of a stock dividend, spinoff, recapitalization, stock split, or
combination or exchange of shares, (ii) by reason of a merger, reorganization or consolidation,
(iii) by reason of a reclassification or change in par value, or (iv) by reason of any other
extraordinary or unusual event affecting the outstanding Stock as a class without the Company’s
receipt of consideration, or if the value of outstanding shares of Stock is substantially reduced
as a result of a spinoff or the Company’s payment of an extraordinary dividend or distribution, the
maximum number of shares of Stock available for issuance under the Plan, the maximum number of
shares of Stock for which any individual may receive Grants in any year, the number of shares
covered by outstanding Grants, the kind of shares to be issued under the Plan, and the price per
share or the applicable market value of such Grants shall be appropriately adjusted by the
Committee to reflect any increase or decrease in the number of, or change in the kind or value of,
issued shares of Stock to preclude, to the extent practicable, the enlargement or dilution of
rights and benefits under such Grants; provided, however, that any fractional shares resulting from
such adjustment shall be eliminated. Any adjustments determined by the Committee shall be final,
binding and conclusive.

6. Eligibility for Participation

(a) Eligible Persons. All Employees, including Employees who are officers or members
of the Board, and all Non-Employee Directors shall be eligible to participate in the Plan.

(b) Selection of Participants. The Committee shall select the Employees and
Non-Employee Directors to receive Grants and shall determine the number of shares of Stock subject
to each Grant.

 

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7. Options

(a) General Requirements. The Committee may grant Options to an Employee or
Non-Employee Director upon such terms and conditions as the Committee deems appropriate under this
Section 7. The Committee may grant Dividend Equivalents with respect to Options.

(b) Number of Shares. The Committee shall determine the number of shares of Stock
that will be subject to each Grant of Options to Employees and Non-Employee Directors.

(c) Type of Option, Price and Term.

(i) The Committee may grant Options that are nonqualified stock options and are not considered
incentive stock options under section 422 of the Code.

(ii) The Option Price of Stock subject to an Option shall be determined by the Committee and
shall be equal to or greater than the Fair Market Value of a share of Stock on the Date of Grant.

(iii) The Committee shall determine the term of each Option. The term of an Option shall not
exceed ten years from the Date of Grant.

(d) Exercisability of Options. Options shall become exercisable in accordance with
such terms and conditions as may be determined by the Committee and specified in the Grant Letter.
The Committee may accelerate the exercisability of any or all outstanding Options at any time for
any reason.

(e) Termination of Employment or Service. Except as provided in the Grant Letter, an
Option may only be exercised while the Participant is employed by the Company, or providing service
as a Non-Employee Director. The Committee shall determine in the Grant Letter under what
circumstances and during what time periods a Participant may exercise an Option after termination
of employment or service.

(f) Exercise of Options. A Participant may exercise an Option that has become
exercisable, in whole or in part, by delivering a notice of exercise to the Company. The
Participant shall pay the Option Price for the Option (i) in cash, (ii) by delivering shares of
Stock owned by the Participant and having a Fair Market Value on the date of exercise equal to the
Option Price or by attestation to ownership of shares of Stock having an aggregate Fair Market
Value on the date of exercise equal to the Option Price, (iii) by payment through a broker in
accordance with procedures permitted by Regulation T of the Federal Reserve Board, or (iv) by such
other method as the Committee may approve. Shares of Stock used to exercise an Option shall have
been held by the Participant for the requisite period of time to avoid adverse accounting
consequences to the Company with respect to the Option. Payment for the shares pursuant to the
Option, and any required withholding taxes, must be received by the time specified by the Committee
depending on the type of payment being made, but in all cases prior to the issuance of the Stock.

 

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8. Stock Units

(a) General Requirements. The Committee may grant Stock Units to an Employee or
Non-Employee Director, upon such terms and conditions as the Committee deems appropriate under this
Section 8. Each Stock Unit shall represent the right of the Participant to receive a share of
Stock or an amount based on the value of a share of Stock. All Stock Units shall be credited to
accounts on the Company’s records for purposes of the Plan.

(b) Terms of Stock Units. The Committee may grant Stock Units that are payable on
terms and conditions determined by the Committee. Stock Units may be paid at the end of a
specified period, or payment may be deferred to a date authorized by the Committee. The Committee
shall determine the number of Stock Units to be granted and the requirements applicable to such
Stock Units. The Committee may grant Dividend Equivalents with respect to Stock Units.

(c) Payment With Respect to Stock Units. Payment with respect to Stock Units shall be
made in cash, in Stock, or in a combination of the two, as determined by the Committee. The Grant
Letter shall specify the maximum number of shares that can be issued under the Stock Units.

(d) Requirement of Employment or Service. The Committee shall determine in the Grant
Letter under what circumstances a Participant may retain Stock Units after termination of the
Participant’s employment or service, and the circumstances under which Stock Units may be
forfeited.

9. Performance Units

(a) General Requirements. The Committee may grant Performance Units to an Employee or
Non-Employee Director, upon such terms and conditions as the Committee deems appropriate under this
Section 9. Each Performance Unit shall represent the right of the Participant to receive a share
of Stock or an amount based on the value of a share of Stock, if specified performance goals and
other conditions are met. All Performance Units shall be credited to accounts on the Company’s
records for purposes of the Plan.

(b) Terms of Performance Units. The Committee shall establish the performance goals
and other conditions for payment of Performance Units. Performance Units may be paid at the end of
a specified performance or other period, or payment may be deferred to a date authorized by the
Committee. The Committee shall determine the number of Performance Units to be granted and the
requirements applicable to such Performance Units. The Committee may grant Dividend Equivalents
with respect to Performance Units.

(c) Payment With Respect to Performance Units. Payment with respect to Performance
Units shall be made in cash, in Stock, or in a combination of the two, as determined by the
Committee. The Committee shall establish a Target Amount for Performance Units in the Grant
Letter. Payment of Performance Units in excess of the Target Amount shall be made in cash.

 

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(d) Requirement of Employment or Service. The Committee shall determine in the Grant
Letter under what circumstances a Participant may retain Performance Units after termination of the
Participant’s employment or service, and the circumstances under which Performance Units may be
forfeited.

10. Stock Awards

(a) General Requirements. The Committee may issue shares of Stock to an Employee or
Non-Employee Director under a Stock Award, upon such terms and conditions as the Committee deems
appropriate under this Section 10. Shares of Stock issued pursuant to Stock Awards may be issued
for cash consideration or for no cash consideration, and subject to restrictions or no
restrictions, as determined by the Committee. The Committee may establish conditions under which
restrictions on Stock Awards shall lapse over a period of time or according to such other criteria
as the Committee deems appropriate, including restrictions based upon the achievement of specific
performance goals.

(b) Number of Shares. The Committee shall determine the number of shares of Stock to
be issued pursuant to a Stock Award and any restrictions applicable to such shares.

(c) Requirement of Employment or Service. The Committee shall determine in the Grant
Letter under what circumstances a Participant may retain Stock Awards after termination of the
Participant’s employment or service, and the circumstances under which Stock Awards may be
forfeited.

(d) Restrictions on Transfer. While Stock Awards are subject to restrictions, a
Participant may not sell, assign, transfer, pledge or otherwise dispose of the shares of a Stock
Award except upon death as described in Section 17. Each Certificate for a share of a Stock Award
shall contain a legend giving appropriate notice of the restrictions in the Grant. The Participant
shall be entitled to have the legend removed when all restrictions on such shares have lapsed. The
Company may retain possession of any Certificates for Stock Awards until all restrictions on such
shares have lapsed.

(e) Right to Vote and to Receive Dividends. The Committee shall determine to what
extent, and under what conditions, the Participant shall have the right to vote shares of Stock
Awards and to receive any dividends or other distributions paid on such shares during the
restriction period.

11. Dividend Equivalents.

(a) General Requirements. When the Committee makes a Grant under the Plan, the
Committee may grant Dividend Equivalents in connection with such Grants, under such terms and
conditions as the Committee deems appropriate under this Section 11. Dividend Equivalents may be
paid to Participants currently or may be deferred, as determined by the Committee. All Dividend
Equivalents that are not paid currently shall be credited to accounts on the Company’s records for
purposes of the Plan. Dividend Equivalents may be accrued as a cash obligation, or may be
converted to Stock Units for the Participant, as determined by the Committee. Unless otherwise
specified in the Grant Letter, deferred Dividend Equivalents will not accrue interest.
The Committee may provide that Dividend Equivalents shall be payable based on the achievement
of specific performance goals.

 

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(b) Payment with Respect to Dividend Equivalents. Dividend Equivalents may be payable
in cash or shares of Stock or in a combination of the two, as determined by the Committee.

12. Other Stock-Based Awards

The Committee may grant other awards, including stock appreciation rights, that are based on,
measured by or payable in Stock to Employees or Non-Employee Directors, on such terms and
conditions as the Committee deems appropriate under this Section 12. Other Stock-Based Awards may
be granted subject to achievement of performance goals or other conditions and may be payable in
Stock or cash, or in a combination of the two, as determined by the Committee in the Grant Letter.
The Committee may grant Dividend Equivalents with respect to Other Stock-Based Awards.

13. Qualified Performance-Based Compensation

(a) Designation as Qualified Performance-Based Compensation. The Committee may
determine that Stock Units, Performance Units, Stock Awards, Dividend Equivalents or Other
Stock-Based Awards granted to an Employee shall be considered “qualified performance-based
compensation” under section 162(m) of the Code. The provisions of this Section 13 shall apply to
any such Grants that are to be considered “qualified performance-based compensation” under section
162(m) of the Code.

(b) Performance Goals. When Stock Units, Performance Units, Stock Awards, Dividend
Equivalents or Other Stock-Based Awards that are to be considered “qualified performance-based
compensation” are granted, the Committee shall establish in writing (i) the objective performance
goals that must be met, (ii) the period during which performance will be measured, (iii) the
maximum amounts that may be paid if the performance goals are met, and (iv) any other conditions
that the Committee deems appropriate and consistent with the requirements of Section 162(m) of the
Code for “qualified performance-based compensation.” The performance goals shall satisfy the
requirements for “qualified performance-based compensation,” including the requirement that the
achievement of the goals be substantially uncertain at the time they are established and that the
performance goals be established in such a way that a third party with knowledge of the relevant
facts could determine whether and to what extent the performance goals have been met. The
Committee shall not have discretion to increase the amount of compensation that is payable, but may
reduce the amount of compensation that is payable, pursuant to Grants identified by the Committee
as “qualified performance-based compensation.”

 

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(c) Criteria Used for Objective Performance Goals. The Committee shall use
objectively determinable performance goals based on one or more of the following criteria: stock
price, earnings per share, net earnings, operating earnings, margin, EBITDA (earnings before
interest, taxes, depreciation and amortization), net capital employed, return on assets,
shareholder return, return on equity, return on capital employed, growth in assets, unit
volume, sales, cash flow, market share, relative performance to a comparison group designated by
the Committee, or strategic business criteria consisting of one or more objectives based on meeting
specified revenue goals, market penetration goals, customer growth, geographic business expansion
goals, cost targets or goals relating to acquisitions or divestitures. The performance goals may
relate to the Participant’s business unit or the performance of the Company as a whole, or any
combination of the foregoing. Performance goals need not be uniform as among Participants.

(d) Timing of Establishment of Goals. The Committee shall establish the performance
goals in writing either before the beginning of the performance period or during a period ending no
later than the earlier of (i) 90 days after the beginning of the performance period or (ii) the
date on which 25% of the performance period has been completed, or such other date as may be
required or permitted under applicable regulations under section 162(m) of the Code.

(e) Certification of Results. The Committee shall certify the performance results for
the performance period specified in the Grant Letter after the performance period expires. The
Committee shall determine the amount, if any, to be paid pursuant to each Grant based on the
achievement of the performance goals and the satisfaction of all other terms of the Grant Letter.

(f) Death, Disability or Other Circumstances. The Committee may provide in the Grant
Letter that Grants identified as qualified performance-based compensation shall be payable, in
whole or in part, in the event of the Participant’s death or disability, a Change of Control or
under other circumstances consistent with the Treasury regulations and rulings under section 162(m)
of the Code.

14. Directors’ Equity Plan

The Directors’ Equity Plan shall be merged into this Plan as of the Effective Date, and all
outstanding Units and accrued Dividend Equivalents under the Directors’ Equity Plan as of the
Effective Date shall be issued and paid out of this Plan. No additional awards shall be made under
the Directors’ Equity Plan. Dividend Equivalents shall be credited under this Plan with respect to
outstanding Units under the Directors’ Equity Plan, according to terms and conditions established
by the Committee under Section 11.

15. Deferrals

The Committee may permit a Participant to defer receipt of the payment of cash or the delivery
of shares that would otherwise be due to the Participant in connection with any Grant. The
Committee shall establish rules and procedures for any such deferrals.

16. Withholding of Taxes

(a) Required Withholding. All Grants under the Plan shall be subject to applicable
federal (including FICA), state and local tax withholding requirements. The Company may require
that the Participant or other person receiving or exercising Grants pay to the Company
the amount of any federal, state or local taxes that the Company is required to withhold with
respect to such Grants, or the Company may deduct from other wages paid by the Company the amount
of any withholding taxes due with respect to such Grants.

 

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(b) Election to Withhold Shares. If the Committee so permits, a Participant may elect
to satisfy the Company’s tax withholding obligation with respect to Grants paid in Stock by having
shares withheld, at the time such Grants become taxable, up to an amount that does not exceed the
minimum applicable withholding tax rate for federal (including FICA), state and local tax
liabilities. The election must be in a form and manner prescribed by the Committee and may be
subject to the prior approval of the Committee.

17. Transferability of Grants

Only the Participant may exercise rights under a Grant during the Participant’s lifetime, and
a Participant may not transfer those rights except by will or by the laws of descent and
distribution. When a Participant dies, the personal representative or other person entitled to
succeed to the rights of the Participant may exercise such rights. Any such successor must furnish
proof satisfactory to the Company of his or her right to receive the Grant under the Participant’s
will or under the applicable laws of descent and distribution.

18. Consequences of a Change of Control

(a) Notice and Acceleration. Upon a Change of Control, unless the Committee
determines otherwise, (i) the Company shall provide each Participant who holds outstanding Grants
with written notice of the Change of Control, (ii) all outstanding Options shall automatically
accelerate and become fully exercisable, (iii) the restrictions and conditions on all outstanding
Stock Awards shall immediately lapse, (iv) all Stock Units and Performance Units shall become
payable in cash in an amount not less than their Target Amount or in a larger amount, up to the
maximum Grant value, as determined by the Committee, and (v) Dividend Equivalents and Other
Stock-Based Awards shall become payable in full in cash, in amounts determined by the Committee.

(b) Assumption of Grants. Upon a Change of Control where the Company is not the
surviving corporation (or survives only as a subsidiary of another corporation), unless the
Committee determines otherwise, all outstanding Options that are not exercised shall be assumed by,
or replaced with comparable options by, the surviving corporation (or a parent or subsidiary of the
surviving corporation), and other Grants that remain outstanding after the Change of Control shall
be converted to similar grants of the surviving corporation (or a parent or subsidiary of the
surviving corporation).

 

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(c) Other Alternatives. Notwithstanding the foregoing, subject to subsection (d)
below, in the event of a Change of Control, the Committee may take any of the following actions
with respect to any or all outstanding Grants, without the consent of any Participant: (i) the
Committee may require that Participants surrender their outstanding Options in exchange for a
payment by the Company, in cash or Stock as determined by the Committee, in an amount equal to the
amount by which the then Fair Market Value of the shares of Stock subject to the
Participant’s unexercised Options exceeds the Option Price, if any, (ii) after giving
Participants an opportunity to exercise their outstanding Options, the Committee may terminate any
or all unexercised Options at such time as the Committee deems appropriate, and (iii) with respect
to Participants holding Stock Units, Performance Units, Dividend Equivalents or Other Stock-Based
Awards, the Committee may determine that such Participants shall receive a payment in settlement of
such Stock Units, Performance Units, Dividend Equivalents or Other Stock-Based Awards, in such
amount and form as may be determined by the Committee. Such surrender, termination or settlement
shall take place as of the date of the Change of Control or such other date as the Committee may
specify.

(d) Committee. The Committee making the determinations under this Section 18
following a Change of Control must be comprised of the same members as those of the Committee
immediately before the Change of Control. If the Committee members do not meet this requirement,
the automatic provisions of subsections (a) and (b) shall apply, and the Committee shall not have
discretion to vary them.

(e) Other Transactions. The Committee may provide in a Grant Letter that a sale or
other transaction involving a Subsidiary or other business unit of the Company shall be considered
a Change of Control for purposes of a Grant, or the Committee may establish other provisions that
shall be applicable in the event of a specified transaction.

19. Requirements for Issuance of Shares

No Stock shall be issued in connection with any Grant hereunder unless and until all legal
requirements applicable to the issuance of such Stock have been complied with to the satisfaction
of the Committee. The Committee shall have the right to condition any Grant made to any
Participant hereunder on such Participant’s undertaking in writing to comply with such restrictions
on his or her subsequent disposition of such shares of Stock as the Committee shall deem necessary
or advisable, and Certificates representing such shares may be legended to reflect any such
restrictions. Certificates representing shares of Stock issued under the Plan will be subject to
such stop-transfer orders and other restrictions as may be required by applicable laws, regulations
and interpretations, including any requirement that a legend be placed thereon. No Participant
shall have any right as a shareholder with respect to Stock covered by a Grant until shares have
been issued to the Participant.

20. Amendment and Termination of the Plan

(a) Amendment. The Board may amend or terminate the Plan at any time; provided,
however, that the Board shall not amend the Plan without approval of the shareholders of UGI if
such approval is required in order to comply with the Code or applicable laws, or to comply with
applicable stock exchange requirements. No amendment or termination of this Plan shall, without
the consent of the Participant, materially impair any rights or obligations under any Grant
previously made to the Participant under the Plan, unless such right has been reserved in the Plan
or the Grant Letter, or except as provided in Section 21(c) below.

(b) No Repricing Without Shareholder Approval. Notwithstanding anything in the Plan
to the contrary, the Committee may not reprice Options, nor may the Board amend the Plan
to permit repricing of Options, unless the shareholders of UGI provide prior approval for such
repricing. The term “repricing” shall have the meaning given that term in Section 303A(8) of the
New York Stock Exchange Listed Company Manual, as in effect from time to time.

 

12

 

(c) Shareholder Approval for “Qualified Performance-Based Compensation.” If Stock
Units, Performance Units, Stock Awards, Dividend Equivalents or Other Stock-Based Awards are
granted as “qualified performance-based compensation” under Section 13 above, the Plan must be
reapproved by the UGI shareholders no later than the first shareholders meeting that occurs in the
fifth year following the year in which the shareholders previously approved the provisions of
Section 13, if additional Grants are to be made under Section 13 and if required by section 162(m)
of the Code or the regulations thereunder.

(d) Termination of Plan. The Plan shall terminate on the day immediately preceding
the tenth anniversary of its Effective Date, unless the Plan is terminated earlier by the Board or
is extended by the Board with the approval of the shareholders. The termination of the Plan shall
not impair the power and authority of the Committee with respect to an outstanding Grant.

21. Miscellaneous

(a) Grants in Connection with Corporate Transactions and Otherwise. Nothing contained
in this Plan shall be construed to (i) limit the right of the Committee to make Grants under this
Plan in connection with the acquisition, by purchase, lease, merger, consolidation or otherwise, of
the business or assets of any corporation, firm or association, including Grants to employees
thereof who become Employees, or for other proper corporate purposes, or (ii) limit the right of
the Company to grant stock options or make other stock-based awards outside of this Plan. Without
limiting the foregoing, the Committee may make a Grant to an employee of another corporation who
becomes an Employee by reason of a corporate merger, consolidation, acquisition of stock or
property, reorganization or liquidation involving the Company in substitution for a grant made by
such corporation. The terms and conditions of the Grants may vary from the terms and conditions
required by the Plan and from those of the substituted stock incentives, as determined by the
Committee

(b) Reduction of Responsibilities. The Committee shall have discretion to adjust an
Employee’s outstanding Grants if the Employee’s authority, duties or responsibilities are
significantly reduced.

(c) Compliance with Law. The Plan, the exercise of Options and the obligations of the
Company to issue or transfer shares of Stock under Grants shall be subject to all applicable laws
and to approvals by any governmental or regulatory agency as may be required. With respect to
persons subject to section 16 of the Exchange Act, it is the intent of the Company that the Plan
and all transactions under the Plan comply with all applicable provisions of Rule 16b-3 or its
successors under the Exchange Act. In addition, it is the intent of the Company that Options, and
Grants made under Section 13 of the Plan, comply with the applicable provisions of section 162(m)
of the Code. To the extent that any legal requirement of section 16 of the Exchange Act or section
162(m) of the Code as set forth in the Plan ceases to be required under section 16 of the Exchange
Act or section 162(m) of the Code, that Plan provision shall cease to
apply. The Committee may revoke any Grant if it is contrary to law or modify a Grant to bring
it into compliance with any valid and mandatory government regulation. The Committee may also
adopt rules regarding the withholding of taxes on payments to Participants. The Committee may, in
its sole discretion, agree to limit its authority under this Section.

 

13

 

(d) Enforceability. The Plan shall be binding upon and enforceable against the
Company and its successors and assigns.

(e) Funding of the Plan; Limitation on Rights. This Plan shall be unfunded. The
Company shall not be required to establish any special or separate fund or to make any other
segregation of assets to assure the payment of any Grants under this Plan. Nothing contained in
the Plan and no action taken pursuant hereto shall create or be construed to create a fiduciary
relationship between the Company and any Participant or any other person. No Participant or any
other person shall under any circumstances acquire any property interest in any specific assets of
the Company. To the extent that any person acquires a right to receive payment from the Company
hereunder, such right shall be no greater than the right of any unsecured general creditor of the
Company.

(f) Rights of Participants. Nothing in this Plan shall entitle any Employee,
Non-Employee Director or other person to any claim or right to receive a Grant under this Plan.
Neither this Plan nor any action taken hereunder shall be construed as giving any individual any
rights to be retained by or in the employment or service of the Company.

(g) No Fractional Shares. No fractional shares of Stock shall be issued or delivered
pursuant to the Plan or any Grant. The Committee shall determine whether cash, other awards or
other property shall be issued or paid in lieu of such fractional shares or whether such fractional
shares or any rights thereto shall be forfeited or otherwise eliminated.

(h) Employees Subject to Taxation Outside the United States. With respect to
Participants who are subject to taxation in countries other than the United States, the Committee
may make Grants on such terms and conditions as the Committee deems appropriate to comply with the
laws of the applicable countries, and the Committee may create such procedures, addenda and
subplans and make such modifications as may be necessary or advisable to comply with such laws.

(i) Governing Law. The validity, construction, interpretation and effect of the Plan and
Grant Letters issued under the Plan shall be governed and construed by and determined in accordance
with the laws of the Commonwealth of Pennsylvania, without giving effect to the conflict of laws
provisions thereof.

 

14

 

UGI CORPORATION

2004 OMNIBUS EQUITY COMPENSATION PLAN

Exhibit A

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

1. “Change of Control” shall mean:

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

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

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

(iv) Consummation of (a) a complete liquidation or dissolution of UGI or (b) a sale or other
disposition of all or substantially all of the assets of UGI other than to a corporation with
respect to which, following such sale or disposition, more than 50% of, respectively, the then
outstanding shares of common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors is then owned beneficially,
directly or indirectly, by all or substantially all of the individuals and entities who were the
Beneficial Owners, respectively, of the Outstanding UGI Common Stock and UGI Voting Securities
immediately prior to such sale or disposition in substantially the same proportion as their
ownership of the Outstanding UGI Common Stock and UGI Voting Securities, as the case may be,
immediately prior to such sale or disposition.

 

A-1

 

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

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

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

5. “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.

 

A-2exv10w22

 

EXHIBIT 10.22

UGI CORPORATION

SUMMARY OF DIRECTOR COMPENSATION

The table below shows the components of director compensation effective October 1, 2006. A
director who is an officer or employee of the Registrant or its subsidiaries is not compensated for
service on the Board of Directors or on any Committee of the Board.

DIRECTORS’ COMPENSATION

	 	 	 	 	 	 	 
	 	 	CASH	 	 	EQUITY
	 	 	COMPONENT	 	 	COMPONENT (1)
	 
	 	 	 	 	 	 
	Annual retainer
	 	$	62,000	 	 	2,550 Stock Units
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	8,500 Options for the purchase of shares of
    common stock of the Registrant.
	 
	 	 	 	 	 	 
	Additional Annual Retainer for
Audit Committee Members
(other than the Chairperson)
	 	$	5,000	 	 	 
	 
	 	 	 	 	 	 
	Additional Annual Retainer for
Audit Committee Chairperson
	 	$	10,000	 	 	 
	 
	 	 	 	 	 	 
	Additional Annual Retainer for
Compensation and Management
Development Committee Chairperson
	 	$	10,000	 	 	 
	 
	 	 	 	 	 	 
	Additional Annual Retainer for
Corporate Governance Committee
Chairperson
	 	$	5,000	 	 	 
	 
	 	 	 	 	 	 
	Additional Annual Retainer for Planning
and Finance Committee Chairperson
	 	$	5,000	 	 	 

	(1)	 	Stock Units and Options are granted under the UGI Corporation 2004 Omnibus
Equity Compensation Plan

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