EXHIBIT 10.3
UGI CORPORATION
SENIOR EXECUTIVE EMPLOYEE
SEVERANCE PAY PLAN
AS IN EFFECT AS OF DECEMBER 16, 2003
UGI CORPORATION
SENIOR EXECUTIVE EMPLOYEE
SEVERANCE PAY PLAN
TABLE OF CONTENTS
PAGE
Article I Background, Purpose and Term of Plan............................... 1
Article II Definitions........................................................ 2
Article III Participation and Eligibility for Benefits......................... 4
Article IV Benefits........................................................... 5
Article V Method and Duration of Benefit Payments............................ 8
Article VI Administration..................................................... 9
Article VII Amendment and Termination.......................................... 11
Article VIII Duties of the Company.............................................. 12
Article IX Claims Procedures.................................................. 13
Article X Miscellaneous...................................................... 15
Appendix A Change of Control................................................ 1
Appendix B Release............................................................ 1
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ARTICLE I
BACKGROUND, PURPOSE AND TERM OF PLAN
Section 1.01 Background. This Plan was amended and restated in its
entirety on April 30, 1993 to reflect sponsorship by a new entity following the
April 10, 1992 reorganization of UGI Utilities, Inc. (formerly, UGI Corporation)
and was again amended and restated as of January 1, 1997, and has been amended
and restated in its entirety as of December 16, 2003, with all changes effective
as of that date. The terms and conditions of this Plan apply to the designated
senior executive employees of UGI Corporation and its subsidiary, UGI Utilities,
Inc., but not to employees of AmeriGas Propane, Inc.
Section 1.02 Purpose of the Plan. The Plan is intended to alleviate, in
part or in full, financial hardships which may be experienced by certain of
those employees of the Company whose employment is terminated without fault in
recognition of their past service to the Company. In essence, benefits under the
Plan are intended to be additional compensation for past services or for the
continuation of specified fringe benefits for a transitional period. The amount
or kind of benefit to be provided is to be based on the Participant's
Compensation, and the fringe benefit programs applicable to him or her, at his
or her Employment Termination Date. The Plan is not intended to be included in
the definitions of "employee pension benefit plan" and "pension plan" set forth
under Section 3(2)(B)(i) of ERISA. Rather, this Plan is intended to meet the
descriptive requirements of a plan constituting a "severance pay plan" within
the meaning of regulations published by the Secretary of Labor at Title 29, Code
of Federal Regulations, Section 2510.3-2(b). Accordingly, the benefits paid by
the Plan are not deferred compensation and no employee shall have a vested right
to such benefits. In addition, the Plan has been drafted to give the Company
broad discretion in designating individuals who are eligible for benefits and
the amount of such benefits. All actions taken by the Company shall be in its
role as the plan sponsor and not as a fiduciary.
Section 1.03 Term of the Plan. This amendment and restatement is a
continuation of the Company's existing Plan. The Plan will continue until such
time as UGI Corporation, acting in its sole discretion, elects to modify,
supersede or terminate it in accordance with the further provisions hereof.
ARTICLE II
DEFINITIONS
Section 2.01 "Affiliate" shall have the meaning ascribed to such term in
Rule 12b-2 of the General Rules and Regulations under the Securities Exchange
Act of 1934, as amended.
Section 2.02 "Benefit" or "Benefits" shall mean any or all of the benefits
that a Participant is entitled to receive pursuant to Article IV of the Plan.
Section 2.03 "Board of Directors" shall mean the Board of Directors of UGI
Corporation, or any successor thereto.
Section 2.04 "Chairman of the Board" shall mean the individual serving as
the Chairman of the Board of Directors of UGI Corporation as of the date of
reference.
Section 2.05 "Change of Control" shall mean a change of control as defined
in the attached Appendix A, as amended from time to time by the Committee, in
its discretion.
Section 2.06 "Chief Executive Officer" shall mean the individual serving
as the Chief Executive Officer of UGI Corporation as of the date of reference.
Section 2.07 "Committee" shall mean the administrative committee
designated pursuant to Article VI of the Plan to administer the Plan in
accordance with its terms, or its delegate.
Section 2.08 "Company" shall mean UGI Corporation, a Pennsylvania
corporation and its subsidiaries and Affiliates, including UGI Utilities, Inc.,
but excluding AmeriGas Propane, Inc. The term "Company" shall include any
successor to UGI Corporation or any subsidiary or Affiliate, exclusive of
AmeriGas Propane, Inc., or a corporation succeeding to the business of UGI
Corporation by merger, consolidation or liquidation or purchase of assets or
stock or similar transaction.
Section 2.09 "Compensation" shall mean the Participant's annual base
salary and applicable target annual bonus amount (if any) in effect on the first
day of the calendar quarter immediately preceding the Participant's Employment
Termination Date.
Section 2.10 "Employment Commencement Date" shall mean the most recent day
on which a Participant became an employee of the Company, any Affiliate of the
Company, or any entity whose business or assets have been acquired by the
Company, its Affiliates or by any predecessor of such entities, unless the
Committee determines to give credit for prior service, if any.
Section 2.11 "Employment Termination Date" shall mean the date on which
the employment relationship between the Participant and the Company is
terminated.
Section 2.12 "ERISA" shall mean the Employee Retirement Income Security
Act of 1974, as amended.
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Section 2.13 "Executive Employee" shall mean an employee of the Company
who is classified as Grade 76 or above at the employee's Employment Termination
Date.
Section 2.14 "Executive Equity Plan" shall mean the UGI Corporation 2000
Stock Incentive Plan, the UGI Corporation 1997 Stock Option and Dividend
Equivalent Plan, the UGI Corporation 2004 Omnibus Equity Compensation Plan (or
its successor, as designated by the Committee) and the AmeriGas Propane, Inc.
2000 Long-Term Incentive Plan (or its successor, as designated by the
Committee).
Section 2.15 "Just Cause" shall mean dismissal due to misappropriation of
funds, substance abuse, habitual insobriety, conviction of a crime involving
moral turpitude, or 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 and its subsidiaries
and Affiliates taken as a whole. Disputes with respect to whether Just Cause
exists shall be resolved in accordance with Article IX.
Section 2.16 "Participant" shall mean any Executive Employee of the
Company who has been designated by the Company as a participant in this Plan.
Section 2.17 "Plan" shall mean the UGI Corporation Senior Executive
Employee Severance Pay Plan, as set forth herein, and as the same may from time
to time be amended.
Section 2.18 "Plan Year" shall mean each fiscal year of the Company during
which this Plan is in effect.
Section 2.19 "Release" shall mean a release of employment-related claims
in such form as may be proscribed by the Company, acting as an employer and not
as a fiduciary, from time to time and with such modifications as the Company
deems appropriate for the Participant's particular situation. A copy of the
current form is attached as Appendix B.
Section 2.20 "Restricted Awards" shall mean restricted stock, stock units,
performance units, restricted units and dividend equivalents and distribution
equivalents with respect to any of the foregoing that are granted to a
Participant under an Executive Equity Plan as determined by the Committee. The
term "Restricted Awards" shall not include stock options.
Section 2.21 "Salary Continuation Period" shall equal one business day for
each month which is included in the Participant's Years of Service plus the
number of months of paid notice under Section 4.01(c), to a maximum of fifteen
(15) months (thirty (30) months in the case of the Chief Executive Officer).
Section 2.22 "Year of Service" shall mean each twelve-month period (or
part thereof) beginning on the Participant's Employment Commencement Date and
ending on each anniversary thereof. Additional Years of Service based on earlier
employment with the Company, any Affiliate of the Company or any entity whose
business or assets have been acquired by the Company, its Affiliates or by any
predecessor of such entities, shall be counted only if permitted by the
Committee.
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ARTICLE III
PARTICIPATION
AND ELIGIBILITY FOR BENEFITS
Section 3.01 General Eligibility Requirement. In its sole discretion, the
Company may grant a Benefit under this Plan to any Executive Employee whom the
Company designates as a Participant and whose employment is terminated by the
Company other than for Just Cause, death, or continuous illness, injury or
incapacity for a period of six consecutive months. Notwithstanding anything
herein to the contrary, an Executive Employee will not be considered to have
incurred a termination by the Company for purposes of this Plan if his or her
employment is discontinued due to voluntary resignation or the expiration of a
leave of absence. In addition, the Participant must meet the requirements of
Section 3.03 in order to receive a Benefit under this Plan.
Section 3.02 Substantially Comparable Employment. In the absence of a
Change of Control, notwithstanding anything herein to the contrary, no Benefits
shall be due hereunder to a Participant in connection with the disposition of a
business or division or Affiliate by the Company or an Affiliate if
substantially comparable terms of employment, as determined by the Committee,
have been offered to the Participant by the transferee; provided, however, that
the Committee, in such situation, may determine that the Company will provide
some or all of the Benefits to a Participant whose employment with the Company
is terminated as described in Section 3.01. This Section 3.02 shall not apply at
or after a Change of Control.
Section 3.03 Conditions to Entitlement to Benefits. As further conditions
to entitlement to Benefits under the Plan, all Participants must, prior to the
payment of any Benefits due hereunder, (i) sign and not rescind or contest the
enforceability of a Release; (ii) return to the Company any and all Company
property held by the Participant, including, but not limited to, all reports,
manuals memoranda, computer disks, tapes and data made available to the
Participant during the performance of the Participant's duties, including all
copies; (iii) hold confidential any and all information concerning the Company,
whether with respect to its business, subscribers, providers, customers,
operations, finances, employees, contractors, or otherwise; and (iv) cooperate
fully with the Company to complete the transition of matters with which the
Participant is familiar or responsible to other employees and make himself or
herself available to answer questions or assist in matters which may require
attention after the Participant's Employment Termination Date. If the Company
determines, in its sole discretion, that the Participant has violated one or
more of the above conditions to entitlement to Benefits, the Committee may
determine that it will not pay the Benefits or may discontinue the payment of
Benefits under the Plan. Any remedy under this Section 3.03 shall be in addition
to, and not in place of, any other remedy the Company may have, at law or
otherwise.
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ARTICLE IV
BENEFITS
Section 4.01 Amount of Immediate Cash Benefit. Subject to the provisions
of Article VII, the Company, acting in its role as the plan sponsor and not as a
fiduciary, shall determine which Executive Employees shall be awarded a Benefit
hereunder and the amount of any such Benefit. The Company may take into account
any factors it determines to be relevant in deciding which Executive Employees
shall be awarded Benefits and the amount of such Benefits, and need not apply
its determinations in a uniform manner to terminated Executive Employees
similarly situated. All such decisions shall be final, binding and conclusive
with respect to the Participant. The cash amount to be paid to a Participant
eligible to receive Benefits under Section 3.01 hereof shall be paid in a lump
sum as provided in Section 5.01 hereof and shall equal the sum of the amounts
described in subsections (a) through (d), less the amount described in
subsection (e), except that any payment under paragraph (b) below that is based
on annual financial performance will be excluded from the lump sum payment and
paid separately as provided below:
(a) An amount equal to the Participant's earned and accrued vacation
entitlement, including banked vacation time, and personal holidays through the
end of the Participant's Salary Continuation Period.
(b) An amount equal to the Participant's annual target bonus amount
under the applicable annual bonus plan (or its successor) for the current Plan
Year multiplied by the number of months elapsed in the current Plan Year to his
or her Employment Termination Date and divided by twelve (12), together with any
amounts previously deferred by the Participant under such plan (with interest
thereon at the rate prescribed by such plan) as well as any amounts due from the
prior year under such plan but not yet paid, provided, however, that if the
Employment Termination Date occurs in the last two (2) months of the fiscal
year, the amount of the current Plan Year target bonus to be paid pursuant to
this paragraph (b) shall be determined and paid after the end of the fiscal year
in accordance with the terms and conditions of the applicable annual bonus plan
as though the Participant were still an Employee, except that the weighting to
be applied to the Participant's business/financial performance goals under the
annual bonus plan will be deemed to be 100%; provided further, however, that the
Chief Executive Officer may, in his sole discretion, determine that the amount
payable pursuant to this paragraph (b) for Employment Termination Dates
occurring in the last two (2) months of the fiscal year may be computed in the
same manner as that provided for Employment Termination Dates occurring during
the first ten (10) months of the fiscal year.
(c) In the case of the Chief Executive Officer, an amount of paid
notice equal to eighteen (18) times a fraction, the numerator of which is his or
her Compensation and the denominator of which is twelve (12), and in the case of
all other Participants, an amount of paid notice equal to sixty-five (65) times
a fraction the numerator of which is the Participant's Compensation and the
denominator of which is two-hundred sixty (260).
(d) An amount equal to the number of the Participant's Years of
Service multiplied by twelve (12) times a fraction, the numerator of which is
the Participant's
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Compensation and the denominator of which is two-hundred sixty (260); provided,
however, that such amount shall not exceed 100% of the Participant's
Compensation.
(e) If the Participant's employment with the Company terminates
before a Change of Control, the cash amount computed in subsections (a) through
(d) above shall be reduced by the amount of cash and the fair market value of
any stock, partnership units or other property that is payable to the
Participant under Restricted Awards after the Participant's termination of
employment, as determined by the Committee. The Committee may determine that
payment of a portion of the Benefit under this Plan will be delayed pending
calculation of the amount payable under Restricted Awards, or the Committee may
decide to pay the amounts described in subsections (a) through (d) above
immediately and offset amounts payable under the Restricted Awards by the amount
of the Benefit previously paid under this Plan. In no event shall a Participant
be required to return to the Company any amounts previously paid under this Plan
as a result of a decline in the value of Restricted Awards.
(f) The offset described in subsection (e) shall not apply if the
Participant's employment with the Company terminates at or after a Change of
Control. In addition, the offset described in subsection (e) shall not apply to
any Restricted Awards for which all requirements for payment have been met
before the Participant's Employment Termination Date (for example, if the
restriction period for a Restricted Award ends on December 31, 2003, the
Restricted Award is payable on February 1, 2004 and the Participant's employment
is terminated on January 15, 2004, Benefits under this Plan shall not be offset
by the Restricted Award).
Section 4.02 Executive Benefits. The Participant shall continue to be
entitled, through the end of the Participant's Salary Continuation Period, to
those employee benefits and executive perquisites listed below (but only if they
are in effect from time to time during the Salary Continuation Period) based
upon the amount of coverage or benefit provided at the Participant's Employment
Termination Date:
(a) Basic Life Insurance;
(b) Supplemental Life Insurance; and
(c) Medical Plan and Dental
Assistance Plan, including COBRA
continuation coverage; and
(d) Executive Retirement Plan
In each case, when contributions are required of all Executive Employees at the
time of the Participant's Employment Termination Date, or thereafter, if
required of all other Executive Employees, the Participant shall be responsible
for making the required contributions, on an after-tax basis only, during the
Salary Continuation Period in order to be eligible for the coverage. In lieu of
any or all of the coverages provided under any of clauses (a) through (c) above,
the Company may pay to the Participant, at the time payment is otherwise to be
made of cash Benefits pursuant to Section 5.01 hereof, a single lump sum payment
equal to the then present value of the cost of such coverages. Notwithstanding
anything herein to the contrary,
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any such coverages shall be discontinued if, and at the time, the Participant
obtains other employment and becomes eligible to participate in the plan of, or
is provided similar coverage by, a new employer; provided, however, that the
Participant shall not be required to refund any sum to the Company should a lump
sum have been paid pursuant to the preceding sentence. Any applicable conversion
rights shall be provided to the Participant at the time coverage ceases. The
Committee shall determine to what extent, if any, any other perquisites or
benefit coverage such as tax preparation services, etc. shall continue to be
provided during the Salary Continuation Period and whether the Participant shall
be entitled to outplacement services or to receive title to the Participant's
Company-supplied automobile, if any, in which case the value of the
Participant's cash Benefit under Section 4.01 hereof shall be increased
accordingly. The Participant shall be responsible for the payment of sales tax
on such automobile, if any.
Section 4.03 Retirement Plans. This Plan shall not govern and shall in no
way affect the Participant's interest in, or entitlement to benefits under, any
of the Company's "qualified" retirement plans and any payments received under
any such plan shall not affect a Participant's right to any Benefit hereunder.
Section 4.04 Effect on Other Benefits. There shall not be drawn from the
continued provision by the Company of any of the aforementioned Benefits any
implication of continued employment or of continued right to accrual of benefits
under the Company's "qualified" retirement plans or an Executive Equity Plan,
and a terminated employee shall not, except as provided in Section 4.01(a)
hereof, accrue vacation days, paid holidays, paid sick days or other similar
benefits normally associated with employment for any part of the Salary
Continuation Period during which benefits are payable under this Plan. The
benefits payable under this Plan shall be in addition to and not in lieu of any
payments or benefits due to the Participant under any other plan, policy, or
program of the Company. Notwithstanding anything herein to the contrary, as
determined by the Committee, the Benefits payable under this Plan to any
Participant may be reduced by any and all payments required to be made by the
Company under federal, state and local law, including, the Worker Adjustment and
Retraining Notification Act, 29 U.S.C. Section 2101 et. seq. or under any
employment agreement or special severance arrangement.
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ARTICLE V
METHOD AND DURATION OF BENEFIT PAYMENTS
Section 5.01 Method of Payment. The cash Benefits to which a Participant
is entitled, as determined pursuant to Article IV hereof, shall be paid in a
lump sum. Payment shall be made by mailing to the last address provided by the
Participant to the Company. Payment shall be made within thirty (30) days after
the Participant's Employment Termination Date, except as otherwise provided in
Section 4.01(b), and after the execution of the Release required under Section
3.03 and the expiration of the required revocation period specified in the
Release. All payments under the Plan are subject to applicable federal, state
and local taxes.
Section 5.02 Payments to Beneficiaries. Each Participant shall designate
one or more beneficiaries to receive any Benefits due hereunder in the event of
the Participant's death prior to the receipt of all such Benefits. Such
beneficiary designation shall be made in the manner, and at the time, prescribed
by the Committee in its sole discretion. In the absence of an effective
beneficiary designation hereunder, the Participant's estate shall be deemed to
be the Participant's designated beneficiary.
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ARTICLE VI
ADMINISTRATION
Section 6.01 Appointment. The Committee shall consist of one (1) or more
persons appointed by the Chairman of the Board. Committee members may be, but
need not be, employees of the Company, including the Chairman of the Board and
the Chief Executive Officer, whether or not they are one and the same person.
Section 6.02 Tenure. Committee members shall serve at the pleasure of the
Chairman of the Board. Committee members may resign at any time on ten (10)
days' written notice, and Committee members may be discharged, with or without
cause, at any time by the Chairman of the Board.
Section 6.03 Authority and Duties. It shall be the duty of the Committee,
on the basis of information supplied to it by the Company, to determine the
eligibility of each Participant for Benefits under the Plan, to determine the
amount of Benefit to which each such Participant may be entitled, and to
determine the manner and time of payment of the Benefit consistent with the
provisions hereof. The Company shall make such payments as are certified to it
by the Committee to be due to Participants. The Committee shall have the full
power and discretionary authority to construe, interpret and administer the
Plan, to correct deficiencies therein, and to supply omissions. All decisions,
actions, and interpretations of the Committee shall be final, binding, and
conclusive upon the parties. The Committee may delegate ministerial and other
responsibilities to one or more Company employees.
Section 6.04 Action by the Committee. A majority of the members of the
Committee shall constitute a quorum for the transaction of business at a meeting
of the Committee. Any action of the Committee may be taken upon the affirmative
vote of a majority of the members of the Committee at a meeting, or at the
direction of the Chairperson, without a meeting, by mail, telegraph, telephone,
or electronic communication device; provided that all of the members of the
Committee are informed of their right to vote on the matter before the Committee
and of the outcome of the vote thereon.
Section 6.05 Officers of the Committee. The Chairman of the Board shall
designate one of the members of the Committee to serve as Chairperson thereof.
The Chairman of the Board shall also designate a person to serve as Secretary of
the Committee, which person may be, but need not be, a member of the Committee.
Section 6.06 Compensation of the Committee. Members of the Committee shall
receive no compensation for their services as such. However, all reasonable
expenses of the Committee shall be paid or reimbursed by the Company upon proper
documentation. The Company shall indemnify members of the Committee against
personal liability for actions taken in good faith in the discharge of their
respective duties as members of the Committee.
Section 6.07 Records, Reporting, and Disclosure. The Committee shall keep
all individual and group records relating to Participants and former
Participants and all other records necessary for the proper operation of the
Plan. Such records shall be made available to the Company and to each
Participant for examination during business hours except that a Participant
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shall examine only such records as pertain exclusively to the examining
Participant and to the Plan. The Committee shall prepare and shall file as
required by law or regulation all reports, forms, documents and other items
required by ERISA, the Internal Revenue Code, and every other relevant statute,
each as amended, and all regulations thereunder (except that UGI Corporation, as
payor of the Benefits, shall prepare and distribute to the proper recipients all
forms relating to withholding of income or wage taxes, Social Security taxes,
and other amounts which may be similarly reportable).
Section 6.08 Actions of the Committee. Whenever a determination is
required of the Committee under the Plan, such determination shall be made
solely at the discretion of the Committee. In addition, the exercise of
discretion by the Committee need not be uniformly applied to similarly situated
Participants and shall be final and binding on each Participant or
beneficiary(ies) to whom the determination is directed.
Section 6.09 Benefits of the Chief Executive Officer. Whenever a
determination is required with respect to the Chief Executive Officer under the
Plan, the individual then serving as the Chairman of the Compensation and
Management Development Committee of the Board of Directors shall make all
determinations with respect to the Chief Executive Officer as to any matter that
directly pertains to, or affects, the Chief Executive Officer.
Section 6.10 Bonding. The Committee shall arrange any bonding that may be
required by law, but no amount in excess of the amount required by law (if any)
shall be required by the Plan.
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ARTICLE VII
AMENDMENT AND TERMINATION
Section 7.01 Amendment, Suspension and Termination. UGI, by action of its
Board of Directors or its Compensation Committee, retains the right, at any time
and from time to time, to amend, suspend or terminate the Plan in whole or in
part, for any reason, and without either the consent of or the prior
notification to any Participant. No such amendment shall give the Company the
right to recover any amount paid to a Participant prior to the date of such
amendment or to cause the cessation and discontinuance of payments of Benefits
to any person or persons under the Plan already receiving Benefits.
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ARTICLE VIII
DUTIES OF THE COMPANY
Section 8.01 Records. The Company shall supply to the Committee all
records and information necessary to the performance of the Committee's duties.
Section 8.02 Payment. UGI Corporation shall make payments from its general
assets to Participants in accordance with the terms of the Plan, as directed by
the Committee.
Section 8.03 Discretion. Any decisions, actions or interpretations to be
made under the Plan by the Company shall be made in its sole discretion, not in
any fiduciary capacity and need not be uniformly applied to similarly situated
individuals, and such decisions, actions or interpretations shall be final,
binding and conclusive upon all parties.
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ARTICLE IX
CLAIMS PROCEDURES
Section 9.01 Application for Benefits. Participants who believe they are
eligible for benefits under this Plan may apply for such benefits by completing
and filing with the Committee an application for benefits on a form supplied by
the Committee. Before the date on which benefit payments commence, each such
application must be supported by such information as the Committee deems
relevant and appropriate.
Section 9.02 Claim. A terminated employee may contest his or her
eligibility for the amount of benefit awarded by completing and filing with the
Committee a written request for review in the manner specified by the Committee.
Each such application must be supported by such information as the Committee
deems relevant and appropriate. The Committee will review the claim and provide
notice to the terminated employee, in writing, within 90 days after the claim is
filed unless special circumstances require an extension of time for processing
the claim. In no event shall the extension exceed a period of 90 days from the
end of the initial period. In the event that any claim for benefits is denied in
whole or in part, the terminated employee whose claim has been so denied shall
be notified of such denial in writing by the Committee. The notice advising of
the denial shall be written in a manner calculated to be understood by the
terminated employee and shall set forth: (i) specific references to the
pertinent Plan provisions on which the denial is based; (ii) a description of
any additional material or information necessary for the claimant to perfect the
claim and an explanation as to why such information is necessary; and (iii) an
explanation of the Plan's claim procedure and the time limits applicable for
such procedures, including a statement of the claimant's right to bring a civil
action under section 502(a) of ERISA following an adverse benefit determination
on appeal.
Section 9.03 Appeals of Denied Claims for Benefits. All appeals shall be
made by the following procedure:
(a) The terminated Employee whose claim has been denied shall file
with the Committee a notice of appeal of the denial. Such notice shall be filed
within sixty (60) days of notification by the Committee of the claim denial,
shall be made in writing, and shall set forth all of the facts upon which the
appeal is based. Appeals not timely filed shall be barred.
(b) The claimant or his duly authorized representative may:
(i) request a review upon written notice to the Committee;
(ii) examine the Plan and obtain, upon request and without charge, copies of all
information relevant to the claimant's appeal; and
(iii) submit issues and comments in writing.
(c) The Named Appeals Fiduciary (as described in Section 9.04) shall
issue a decision no later than 60 days after receipt of a request for review
unless special circumstances, such as the need to hold a hearing, require a
longer period of time, in which case a decision shall be rendered as soon as
possible, but not later than 120 days after receipt of the terminated Employee's
notice of appeal.
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(d) The Named Appeals Fiduciary shall consider the merits of the
claimant's written presentations, the merits of any facts or evidence in support
of the denial of benefits, and such other facts and circumstances as the Named
Appeals Fiduciary shall deem relevant.
(e) The Named Appeals Fiduciary shall render a determination upon
the appealed claim which determination shall be accompanied by a written
statement setting forth shall set forth:
(i) specific reasons for the decision, written in a manner calculated to be
understood by the claimant;
(ii) specific references to the pertinent Plan provisions on which the decision
is based;
(iii) the claimant's right to receive, upon request and free of charge,
reasonable access to, and copies of, all documents, records and other
information relevant to the claim for benefits; and
(iv) the claimant's right to bring a civil action under section 502(a) of ERISA.
Section 9.04 Appointment of the Named Appeals Fiduciary. The Named Appeals
Fiduciary shall be the person or persons named as such by the Board of
Directors, or, if no such person or persons be named, then the person or persons
named by the Committee as the Named Appeals Fiduciary. Named Appeals Fiduciaries
may at any time be removed by the Board of Directors, and any Named Appeals
Fiduciary named by the Committee may be removed by the Committee. All such
removals may be with or without cause and shall be effective on the date stated
in the notice of removal. The Named Appeals Fiduciary shall be a "Named
Fiduciary" within the meaning of ERISA, and unless appointed to other fiduciary
responsibilities, shall have no authority, responsibility, or liability with
respect to any matter other than the proper discharge of the functions of the
Named Appeals Fiduciary as set forth herein.
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ARTICLE X
MISCELLANEOUS
Section 10.01 Nonalienation of Benefits. None of the payments, benefits or
rights of any Participant shall be subject to any claim of any creditor, and, in
particular, to the fullest extent permitted by law, all such payments, benefits
and rights shall be free from attachment, garnishment, trustee's process, or any
other legal or equitable process available to any creditor of such Participant.
No Participant shall have the right to alienate, anticipate, commute, pledge,
encumber or assign any of the benefits or payments which the Participant may
expect to receive, contingently or otherwise, under this Plan.
Section 10.02 No Contract of Employment. Neither the establishment of the
Plan, nor any modification thereof, nor the creation of any fund, trust or
account, nor the payment of any benefits shall be construed as giving any
Participant, or any person whosoever, the right to be retained in the service of
the Company, and all Participants shall remain subject to discharge to the same
extent as if the Plan had never been adopted.
Section 10.03 Severability of Provisions. If any provision of this Plan
shall be held invalid or unenforceable by a court of competent jurisdiction,
such invalidity or unenforceability shall not affect any other provisions
hereof, and this Plan shall be construed and enforced as if such provisions had
not been included.
Section 10.04 Successors, Heirs, Assigns, and Personal Representatives.
This Plan shall be binding upon the heirs, executors, administrators, successors
and assigns of the parties, including each Participant, present and future.
Unless the Committee directs otherwise, UGI Corporation shall require any
successor or successors (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of UGI Corporation, or a division or Affiliate thereof, (i) to
acknowledge expressly that this Plan is binding upon and enforceable against
such successor in accordance with the terms hereof, (ii) to become jointly and
severally obligated with UGI Corporation, to perform the obligations under this
Plan, and (iii) to agree not to amend or terminate the Plan for a period of
three (3) years after the date of succession without the consent of the affected
Participant.
Section 10.05 Headings and Captions. The headings and captions herein are
provided for reference and convenience only, shall not be considered part of the
Plan, and shall not be employed in the construction of the Plan.
Section 10.06 Gender and Number. Except where otherwise clearly indicated
by context, the masculine and the neuter shall include the feminine and the
neuter, the singular shall include the plural, and vice-versa.
Section 10.07 Unfunded Plan. The Plan shall not be funded. The Company
may, but shall not be required to, set aside or designate an amount necessary to
provide the Benefits specified herein (including the establishment of trusts).
In any event, no Participant shall have any right to, or interest in, any assets
of the Company which may be applied by the Company to the payment of Benefits.
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Section 10.08 Payments to Incompetent Persons, Etc. Any benefit payable to
or for the benefit of a minor, an incompetent person, or other person incapable
of receipting therefor shall be deemed paid when paid to such person's guardian
or to the party providing or reasonably appearing to provide for the care of
such person, and such payment shall fully discharge the Company, the Committee
and all other parties with respect thereto.
Section 10.09 Lost Payees. A benefit shall be deemed forfeited if the
Committee is unable to locate a Participant to whom a Benefit is due. Such
Benefit shall be reinstated if application is made by the Participant for the
forfeited Benefit while this Plan is in operation.
Section 10.10 Controlling Law. This Plan shall be construed and enforced
according to the laws of the Commonwealth of Pennsylvania, to the extent not
preempted by Federal law, without giving effect to any Pennsylvania choice of
law provisions.
IN WITNESS WHEREOF, UGI Corporation has caused the Plan to be
executed by its duly authorized officer and its corporate seal to be affixed
hereto as of the ____ day of _______________________, ____.
UGI CORPORATION
Attest:
_________________________ By: _______________________________
Secretary Vice President & General Counsel
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APPENDIX A
CHANGE OF CONTROL
For purposes of the Plan, the term "Change of Control" shall have the
meaning set forth below and the defined terms used in the definition of "Change
of Control" shall have the meanings set forth below.
1. "Change of Control" shall mean:
(a) Any Person (except the Participant, his Affiliates and
Associates, 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 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 Company 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
"Company Voting Securities"), in either case unless the members of UGI's
Executive Committee in office immediately prior to such acquisition determine
within five business days of the receipt of actual notice of such acquisition
that the circumstances do not warrant the implementation of the Change of
Control provisions of this Plan; or
(b) Individuals who, as of the beginning of any twenty-four
month period, constitute the Board (the "Incumbent Board") cease for any reason
to constitute at least a majority of the Board, provided that any individual
becoming a director subsequent to the beginning of such period whose election or
nomination for election by UGI's stockholders was approved by a vote of at least
a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent 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
(c) Completion 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 Company Common Stock and Company 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 Company Common Stock and Company Voting
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Securities, as the case may be, in any such case unless the members of UGI's
Executive Committee in office immediately prior to such Business Combination
determine at the time of such Business Combination that the circumstances do not
warrant the implementation of the Change of Control provisions of this Plan; or
(d) Completion of (i) a complete liquidation or dissolution of
UGI or (ii) 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 Company Common Stock and Company Voting Securities immediately prior
to such sale or disposition in substantially the same proportion as their
ownership of the Outstanding Company Common Stock and Company Voting Securities,
as the case may be, immediately prior to such sale or disposition, in any such
case unless the members of UGI's Executive Committee in office immediately prior
to such sale or disposition determine at the time of such sale or disposition
that the circumstances do not warrant the implementation of the Change of
Control provisions of this Plan.
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 Securities Exchange Act of 1934, as amended (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
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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 UGI; 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 40 days after the date of such acquisition.
4. "Board" shall mean the Board of Directors of UGI.
5. "Person" shall mean an individual or a corporation, partnership,
trust, unincorporated organization, association, or other entity.
6. "Subsidiary" shall mean any corporation in which UGI, directly or
indirectly, owns at least a 50% interest or an unincorporated entity of which
UGI, directly or indirectly, owns at least 50% of the profits or capital
interests.
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APPENDIX B
RELEASE
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