AMERIGAS PROPANE, INC.
2000 LONG-TERM INCENTIVE PLAN
ON BEHALF OF AMERIGAS PARTNERS, L.P.
RESTRICTED UNIT GRANT LETTER
This RESTRICTED UNIT GRANT, dated
January 1, 2009 (the “Date of Grant”), is
delivered by AmeriGas Propane, Inc. (the “Company”) to
_____ (the “Participant”).
The AmeriGas Propane, Inc. 2000 Long-Term
Incentive Plan on Behalf of AmeriGas Partners, L.P., as amended
(the “Plan”) provides for the grant of restricted units
(“Restricted Units”) with respect to Common Units of
AmeriGas Partners, L.P. (“APLP”). A Restricted Unit is
a phantom unit that represents the value of one Common Unit of
APLP. The Compensation/Pension Committee of the Board of Directors
of the Company (the “Committee”) has decided to grant
Restricted Units to the Participant on the terms described
below.
NOW, THEREFORE, the parties to this Grant
Letter, intending to be legally bound hereby, agree as
follows:
1.
Grant of Restricted Units . Subject to the terms and
conditions set forth in this Grant Letter and in the Plan, the
Committee hereby grants to the Participant _____
Restricted Units. The number of Restricted Units set forth above is
the target award of Restricted Units. The Restricted Units are
contingently awarded and will be earned and payable if and to the
extent that the Performance Goals (described below) and other
conditions of the Grant Letter are met. The Restricted Units are
granted with Restricted Unit Distribution Equivalents (as defined
in the Plan).
(a) The Participant shall earn the right to
payment of the Restricted Units if the Performance Goals described
below are met for the Performance Period, and if the Participant
continues to be employed by the Company through December 31,
2011. The Performance Period is the period beginning
January 1, 2009 and ending December 31, 2011. The
performance goals and other requirements of this Section 2 are
referred to as the “Performance Goals.”
(b) The Restricted Units will be payable if
APLP’s Total Shareholder Return (TSR) equals the median
TSR of a Comparison Group for the Performance Period. The
Comparison Group is a group of publicly traded master limited
partnerships in the propane, pipeline and coal industries, as set
forth on the attached Exhibit A. In the event of any mergers,
sales or other changes in the companies listed on Exhibit A,
the Committee may make such adjustments to the Comparison Group as
it deems appropriate. The actual amount of the award of Restricted
Units may be higher or lower than the target award, or even zero,
based on APLP’s TSR percentile rank relative to the companies
in the Comparison Group, as follows:
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APLP’s
TSR Rank
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(Percentile)
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Percentage of Target Award
Earned
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200
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%
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175
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%
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150
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%
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125
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%
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100
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%
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50
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%
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0
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%
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The target
award percentage earned will be interpolated between each of the
measuring points.
(c) TSR shall be calculated by the Company
using the comparative returns methodology used by Bloomberg L.P. or
its successor at the time of the calculation. The price used for
determining TSR at the beginning and the end of the Performance
Period will be the average price for the 90-day period preceding
the beginning of the Performance Period (i.e., the 90-day period
ending on December 31, 2008) and the 90-day period ending on
the last day of the Performance Period (i.e., the 90-day period
ending on December 31, 2011).
(d) The target award is the number of
Restricted Units set forth in Section 1 above, which is the
amount designated for 100% (50th TSR rank) performance. The
Participant can earn up to 200% of the target award if APLP’s
TSR percentile rank exceeds the 50th TSR percentile rank, according
to the foregoing schedule.
(e) At the end of the Performance Period,
the Committee will determine whether and to what extent the
Performance Goals have been met and the amount to be paid with
respect to the Restricted Units. Except as described in
Section 3 below, the Participant must be employed by the
Company on December 31, 2011 in order for the Participant to
receive payment with respect to the Restricted Units.
3.
Termination of Employment or Service .
(a) Except as described below, if the
Participant’s employment with the Company terminates on or
before December 31, 2011, the Restricted Units and all
Restricted Unit Distribution Equivalents credited under this Grant
Letter will be forfeited.
(b) If the Participant terminates
employment on account of Retirement (as defined in the Plan),
Disability (as defined in the Plan) or death, the Participant will
earn a pro-rata portion of the Participant’s outstanding
Restricted Units and Restricted Unit Distribution Equivalents, if
the Performance Goals and the requirements of this Grant Letter are
met. The prorated portion will be determined as the amount that
would otherwise be paid after the end of the Performance Period,
based on achievement of the Performance Goals, multiplied by a
fraction, the numerator of which is the number of calendar years
during the Performance Period in which the Participant has been
employed by the Company and the denominator of which is three. For
purposes of the proration calculation, the calendar year in which
the Participant’s termination of employment or service on
account of Retirement, Disability, or death occurs will be counted
as a full year.
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(c) In the event of termination of
employment or service on account of Retirement, Disability or
death, the prorated amount shall be paid after the end of the
Performance Period, pursuant to Section 5 below.
(d) The Committee may apply the Plan
provisions applicable to transfers of employment and reduction of
responsibilities as the Committee deems appropriate.
4.
Coordination with Severance Plan . Notwithstanding anything
in this Grant Letter to the contrary, if the Participant receives
severance benefits under a Severance Plan (as defined in the Plan)
and the terms of such benefits require that severance compensation
payable under the Severance Plan be reduced by benefits payable
under this Plan, any amount payable to the Participant with respect
to Restricted Units and Restricted Unit Distribution
Equiv
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