Document:

<PAGE>   1
                                                                    Exhibit 10.1

                          MELLON FINANCIAL CORPORATION
                 STOCK OPTION PLAN FOR OUTSIDE DIRECTORS (2001)

I.   Purpose

The purposes of this Stock Option Plan for Outside Directors (2001) are to align
the interests of the Outside Directors of Mellon Financial Corporation (the
"Corporation") more closely with the interests of the Corporation's
shareholders, to provide such directors with an additional inducement to remain
in the service of the Corporation with an increased incentive to work for its
long-term success, and to establish an effective element of a reasonable
directors' compensation package.

II.   Definitions

The following terms shall have the meanings indicated below:

   2.1   "Advisory Board" shall mean the Advisory Board of the Corporation.

   2.2   "Board of Directors" shall mean the Board of Directors of the
Corporation.

   2.3   "Change in Control Event" shall mean any of the following events:

   (a) The occurrence with respect to the Corporation of a "Control
   Transaction", as such term is defined in Section 2542 of the Pennsylvania
   Business Corporation Law of 1988, as of August 15, 1989; or

   (b) Approval by the stockholders of the Corporation of (i) any consolidation
   or merger of the Corporation where either (x) the holders of voting stock of
   the Corporation immediately before the merger or consolidation will not own
   more than 50% of the voting shares of the continuing or surviving corporation
   immediately after such merger or consolidation or (y) the Incumbent Directors
   immediately before the merger or consolidation will not hold more than 50%
   (rounded to the next whole person) of the seats on the board of directors of
   the continuing or surviving corporation, or (ii) any sale, lease or exchange
   or other transfer (in one transaction or a series of related transactions) of
   all or substantially all the assets of the Corporation; or

   (c) A change of 25% (rounded to the next whole person) in the membership of
   the Board of Directors within a 12-month period, unless the election or
   nomination for election by stockholders of each new director within such
   period (i) was approved by the vote of 85% (rounded to the next whole person)
   of the directors then still in office who were in office at the beginning of
   the 12-month period and (ii) was not as a result of an actual or threatened
   election with respect to directors or any other actual or threatened
   solicitation of proxies by or on behalf of any person other than the Board of
   Directors. As used in this Section 2.3, the term "Incumbent Director" means
   as of any time a director of the Corporation (x) who has been a member of the
   Board of Directors continuously for at least 12 months or (y) whose election
   or nomination as director within such period met the requirements of clauses
   (i) and (ii) of the preceding sentence.

   2.4   "Common Stock" shall mean the common stock, par value $.50 per share,
of the Corporation.

   2.5   "Corporation" shall mean Mellon Financial Corporation.

   2.6   "Business Day" shall mean any day on which the market used to determine
the Fair Market Value of the Common Stock is open for trading.

   2.7   "Fair Market Value" shall mean the closing price of the Common Stock in
the New York Stock Exchange Composite Transactions on the relevant date, or, if
no sale shall have been made on such exchange on that date, the closing price in
the New York Stock Exchange Composite Transactions on the last preceding day on
which there was a sale.

   2.8   "HR Head" shall mean the head of the Human Resources Department of
Mellon Bank, N.A.

   2.9   "Outside Director" shall mean any individual who on the relevant date
is a member of the Board of Directors or the Advisory Board but is not an
employee of the Corporation or any subsidiary.

   2.10  "Option" shall mean an option granted to an Outside Director pursuant
to the Plan.

                                       1

<PAGE>   2

   2.11   "Plan" shall mean this Mellon Financial Corporation Stock Option Plan
for Outside Directors (2001).

   2.12   "Participant" shall mean an eligible Outside Director who is granted
an Option under the Plan.

   2.13   "Rule 16b-3" shall mean Rule 16b-3 promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as amended from
time to time, or any successor rule.

   2.14   "Service Year" shall mean the period beginning on the date of the
Corporation's annual meeting of shareholders at which directors are elected and
ending on the date of such annual meeting in the following year.

III.   Administration

   3.1    Self-Operative Plan. The Plan is intended to be self-operative to the
maximum extent consistent with prudent business practice. Under no circumstances
shall any individual or group of individuals exercise discretion with respect to
designating the recipient of an Option, the number of shares of Common Stock
that are subject to an Option, the date of grant for an Option or the exercise
price for an Option.

   3.2    Certain Administrative Duties. The HR Head shall administer the Plan
within the parameters set forth in Section 3.1. The HR Head's actions and
interpretations under the Plan shall be final, conclusive and binding. The HR
Head shall not be liable for any action taken or decisions made in good faith
relating to the Plan or any Option hereunder.

   3.3    Source of Shares. The shares of Common Stock that may be issued upon
the exercise of Options under the Plan may be either authorized but unissued
shares or authorized and issued shares held in the Corporation's treasury. The
aggregate number of shares of Common Stock that may be issued under the Plan
shall not exceed 500,000 shares, subject to adjustment pursuant to Section 7.6
hereof.

IV.   Granting of Options

   4.1    Grants at Beginning of Service Year. Options shall be automatically
granted on the third business day following the first day of the Service Year to
all individuals serving as Outside Directors on such grant date.

   4.2    Grants During Service Year. Options shall be automatically granted on
his or her election date to each Outside Director who is elected by the Board of
Directors between Option grants under Section 4.1. Such Options shall have an
exercise date and expiration date identical to the Options granted to Outside
Directors under Section 4.1. The number of shares of Common Stock subject to
such Option shall be the number of shares that are subject to each Option
granted at the beginning of such Service Year under Section 4.1, multiplied by a
fraction the numerator of which is the number of days during such Service Year
that the recipient of such Option will serve as an Outside Director and the
denominator of which is the number of days in the Service Year (with fractional
shares being rounded upward to the nearest whole share). The exercise price for
such Option shall be the Fair Market Value of the Common Stock on the date of
grant.

   4.3    Stock Option Agreements. A written "Stock Option Agreement" executed
by the Corporation and the Participant shall evidence the grant of any Option.
The Stock Option Agreement shall contain the number of shares of Common Stock
that are subject to the Option evidenced thereby, the other essential terms of
the Option determined in accordance with Section V hereof, and other terms that
are not inconsistent with the requirements of this Plan.

   4.4    Cancellation and Reissuance of Options. No Option shall be repriced by
any method, including by cancellation and reissuance.

V.   Terms of Options

   5.1    Terms of Options. All Options granted during a Service Year shall have
a term of ten years from the date of grant under Section 4.1 for that Service
Year, subject to earlier termination pursuant to Section 5.5 hereof.

   5.2    Exercise of Options. All Options granted during a Service Year shall
become exercisable on the first anniversary of the date of grant under Section
4.1 for that Service Year. All Options shall become fully exercisable
immediately and automatically upon the occurrence of a Change in Control Event;
provided, however, that if the Securities and Exchange Commission ("SEC") deems
such acceleration to preclude a pooling of interests by the Corporation, such
acceleration shall

                                       2

<PAGE>   3

be modified to the extent necessary to remove the SEC's objection, and, provided
further, however, that where a Participant ceases to serve on the Board of
Directors or Advisory Board following such a Change in Control Event, any such
Option which has not become exercisable shall not be forfeited but shall be
permitted to vest on its original vesting date and remain exercisable for the
term provided for under Section 5.1.

   5.3   Exercise Price. The exercise price for all Options shall be the Fair
Market Value of the Common Stock on the date the Option is granted.

   5.4   Number of Shares. The number of shares of Common Stock that may be
purchased upon exercise of an Option shall be 3,300, except as provided for
grants under Section 4.2. The number of shares subject to an Option shall be
subject to adjustment in accordance with Section 7.6 hereof.

   5.5   Forfeiture. Subject to Section 5.2, Options that have not become
exercisable on the date the Participant ceases to serve on the Board of
Directors or Advisory Board of the Corporation for any reason other than the
Participant's death, disability or completion of the Service Year shall be
forfeited and terminated immediately upon such termination of service. Options
that have become exercisable shall remain exercisable, and shall no longer be
subject to forfeiture, throughout their terms, regardless of whether the
Participant serves on the Board of Directors or Advisory Board of the
Corporation at the time the Option is exercised.

VI.   Exercise of Options

   6.1   Notice of Exercise. An Option shall be exercised by delivery to the HR
Head or his or her designee of a written notice of exercise in the form
prescribed by the HR Head for use from time to time. Such notice of exercise
shall indicate the number of shares as to which the Option is exercised and
shall be accompanied by the full exercise price for the Options exercised.

   6.2   Form of Payment. The exercise price may be paid in cash or, in whole or
in part, by surrender of shares of Common Stock, which shall be credited against
the exercise price at their Fair Market Value on the date the Option is
exercised; provided, however, that no shares may be delivered in payment of the
option price of an Option unless such shares, or an equivalent number of shares,
shall have been held by the Participant (or other person entitled to exercise
the Option) for at least six months prior to such delivery.

VII.   Miscellaneous

   7.1   General Restriction. Each Option under the Plan shall be subject to the
requirement that, if at any time the HR Head shall determine that any listing or
registration of the shares of Common Stock, any consent or approval of any
governmental body, or any other agreement, consent or action is necessary or
desirable as a condition of the granting of an Option or issuance of Common
Stock in satisfaction thereof, such grant or issuance may not be consummated
unless such requirement is satisfied in a manner acceptable to the HR Head.

   7.2   Transferability. During the life of a Participant, an Option shall be
exercisable only by such Participant; provided, however, that Options may be
transferred (i) by the Participant upon his or her death by will or pursuant to
applicable laws of descent and distribution or (ii) as directed by the
Participant during his or her lifetime by gift to members of his or her
immediate family or to an entity for the benefit of the Participant and/or
members of his or her immediate family or (iii) as directed by the Participant
during his or her lifetime as otherwise approved by the Board of Directors from
time to time. All transfers shall be made in accordance with procedures adopted
by the HR Head, which may be amended from time to time. No other assignment or
transfer of an Option, or of the rights represented thereby, whether voluntary
or involuntary, by operation of law or otherwise shall be permitted.

   7.3   Withholding Taxes. Whenever the Corporation issues or transfers shares
of Common Stock under the Plan, the Corporation shall have the right to require
the Participant to remit to the Corporation an amount sufficient to satisfy any
federal, state, and local withholding tax requirements prior to the delivery of
any certificate for such shares.

   7.4   No Right to Continued Service. Nothing in the Plan or in any agreement
entered into pursuant to the Plan shall confer upon any Participant any right to
continued service as a director of the Corporation or any subsidiary or on the
Advisory Board or affect any right of the Corporation or a subsidiary, acting
through their boards of directors or otherwise, to terminate or otherwise affect
the service of such Participant.

                                       3
<PAGE>   4

   7.5   No rights as Shareholders. Participants as such shall have no rights as
shareholders of the Corporation unless and until certificates for shares of
Common Stock are registered in their names in satisfaction of a duly exercised
Option.

   7.6   Adjustments. If there is any change in the Common Stock by reason of
any stock split, stock dividend, spin-off, split-up, spin-out, recapitalization,
merger, consolidation, reorganization, combination or exchange of shares, or any
other similar transaction, the number and kind of shares available for grant
under the Plan or subject to or granted pursuant to an Option and the price
thereof, or other numeric limitations under the Plan, as applicable, shall be
appropriately adjusted by the Board. For purposes of this Section 7.6, it is
intended that, absent reasons to the contrary, adjustments to Options be
consistent with any changes or lack of changes resulting from the same cause to
other options on the Common Stock.

   7.7   Amendment or Termination of the Plan. The Board of Directors may at any
time terminate the Plan or any part thereof and may from time to time amend the
Plan as it may deem advisable. Any such action of the Board of Directors may be
taken without the approval of the Corporation's shareholders, but only to the
extent that such shareholder approval is not required by applicable law or
regulation, including specifically Rule 16b-3, or the rules of any stock
exchange on which the Common Stock is listed. The termination or amendment of
the Plan shall not, without the consent of the Participant, adversely affect
such Participant's rights under an Option previously granted.

   7.8   Awards to Foreign Nationals. To the extent the HR Head deems it
necessary, appropriate or desirable to comply with foreign law or practice and
to further the purposes of the Plan, the HR Head may, without amending the Plan,
establish special rules applicable to Options granted to Participants who are
foreign nationals. Such rules must be within the parameters set forth in Section
3.1.

   7.9   Effective Date. This Plan shall be effective February 20, 2001, the
date of its adoption by the Board, subject to approval of the shareholders of
the Corporation at the 2001 Annual Meeting.

April 2001

                                       4<PAGE>   1
                                                                    Exhibit 10.1

                            EQUITABLE RESOURCES, INC.
                       EXECUTIVE SHORT-TERM INCENTIVE PLAN

         Section 1. Incentive Plan Purposes. The main purposes of the Equitable
Resources, Inc. (the "Company") Executive Short-Term Incentive Plan (the "Plan")
are to maintain a competitive level of total cash compensation and to align the
interests of the Company's executive employees with those of the Company's
shareholders and with the strategic objectives of the Company. By placing a
portion of executive employee compensation at risk, the Company can reward
performance based on the overall performance of the Company.

         Section 2. Effective Date. The effective date of this Plan is January
1, 2001. The Plan will remain in effect from year to year (each calendar year
shall be referred to herein as a "Plan Year") until formally amended or
terminated in writing by the Company's Board of Directors or the Compensation
Committee of the Board of Directors ("Committee"), as defined in Section 4 and
as provided in Section 12.

         Section 3. Eligibility.

         (a)      Any employee who is a "covered employee", as defined in
                  Section 162(m)(3) of the Internal Revenue Code of 1986, as
                  amended (the "Code"), and the regulations promulgated
                  thereunder, as determined at the end of the immediately
                  preceding Plan Year, and any employee who the Committee, as
                  defined in Section 4, believes will be a covered employee for
                  a Plan Year, shall be eligible to participate in the Plan;
                  provided, however, that no employee who participates in the
                  Company's annual Short-Term Incentive Plan shall be eligible
                  to participate in the Plan.

         (b)      The Committee may designate any eligible employee for
                  participation in the Plan in its complete and sole discretion.
                  Eligible employees who are designated to participate in the
                  Plan for any Plan Year will be notified in writing of their
                  participation and given a Plan document for their reference.

         Section 4. Administration of the Plan. The Plan shall be administered
by the Committee, which shall be comprised solely of two or more outside
directors within the meaning of Section 162(m) of the Code and the regulations
promulgated thereunder. On an annual basis, the Committee shall designate the
participants and determine the Performance Goals, as defined in Section 5 of the
Plan, and the Incentive Targets, as defined in Section 6 of the Plan. Prior to
payment of any Incentive Awards, as defined in Section 6 of the Plan, the
Committee shall certify that the Performance Goals and other material terms were
satisfied. The Committee shall also review and approve any proposed amendments
to the Plan throughout the Plan Year.

         Section 5. Performance Goals.

         (a)      Each participant shall have specific performance goals (the
                  "Performance Goals") determined for his or her position for
                  the subject Plan Year. These Performance Goals will support
                  the approved business plan of the Company, affiliate or
                  business unit, as applicable, and be based upon the specific
                  performance measures established by the Committee for the Plan
                  Year.

<PAGE>   2

         (b)      A copy of each participant's Performance Goals shall be
                  determined in writing, and kept on file with the appropriate
                  business segment Human Resources Department, not later than 90
                  days after the commencement of the Plan Year to which they
                  relate; provided that in no event will Performance Goals be
                  established after 25 percent of the Plan Year has elapsed or
                  when the outcome of such Performance Goals is no longer
                  substantially uncertain. The participants' Performance Goals
                  for each Plan Year shall be attached hereto as Attachment A.

         (c)      The Performance Goals determined by the Committee will be
                  based upon one or more of the following objective performance
                  measures and expressed in either, or a combination of,
                  absolute or relative values: earnings per share growth rates,
                  return on total capital, earnings per share, stock price,
                  revenues, costs (aggregate or per unit), net income, operating
                  income, operating margin, cash flow, market share, return on
                  equity, return on assets and total shareholder return. The
                  Performance Goals may be based upon the attainment of one or
                  more levels of performance of the Company, its affiliates or
                  business units, as measured against one or more of the
                  performance measures.

         (d)      When the Performance Goals are determined by the Committee,
                  the Committee shall also specify the manner in which the
                  Performance Goals shall be calculated. The Committee may
                  determine that unusual items or certain specified events or
                  occurrences, including changes in accounting standards or tax
                  laws, shall be excluded from the calculation of the
                  Performance Goal.

         Section 6. Incentive Targets and Awards.

         (a)      Incentive compensation targets ("Incentive Targets") shall be
                  determined by the Committee and expressed as a percentage of
                  the participants' base salary in effect at the time the
                  Performance Goal is established. The Incentive Targets shall
                  be based upon the level of achievement of the Performance
                  Goals, and shall be determined by the Committee at the
                  commencement of each Plan Year and specified on Attachment B
                  hereto.

         (b)      Incentive awards ("Incentive Awards") may be earned by
                  participants during a Plan Year; provided, however, that
                  payment of any Incentive Award under the Plan to a participant
                  (i) shall be contingent upon the attainment of the Performance
                  Goals established by the Committee for the Plan Year and (ii)
                  may not exceed the participant's Incentive Target established
                  for the actual level of achievement attained.

         (c)      The Committee shall have no discretion to increase any
                  Incentive Target or Incentive Award payable that would
                  otherwise be due upon attainment of the Performance Goals, but
                  the Committee may in its discretion reduce or eliminate such
                  Incentive Target or Incentive Award; provided, however, that
                  the exercise of such negative discretion shall not be
                  permitted to result in any increase in the amount of any
                  Incentive Target or Incentive Award payable to any other
                  participant.

         (d)      The maximum Incentive Award payable to any participant for any
                  Plan Year is an amount equal to three times the participant's
                  annual base salary in effect at the time the Incentive Target
                  is determined or, if less, $3,000,000.

<PAGE>   3

         (e)      Except as provided in Section 7 of the Plan, Incentive Awards
                  shall be paid in cash as promptly as practicable following the
                  end of a Plan Year and after the Committee has determined and
                  certified in writing the extent to which the Performance Goals
                  have been attained and the Incentive Awards have been earned.

         Section 7. Deferral. Except as otherwise determined by the Committee at
the commencement of the Plan Year, participants who directly report to the
Company's Chief Executive Officer (the "CEO") and the CEO will be required to
defer twenty percent (20%) of their Incentive Award into the Company's common
stock fund under and pursuant to the Company's Deferred Compensation Plan, if at
the time of payment they have not met the stock ownership guidelines set by the
Committee. Except as otherwise determined by the Committee at the commencement
of the Plan Year, participants who directly report to executives who report
directly to the CEO will be required to defer ten percent (10%) of their
Incentive Award into the Company's common stock fund under and pursuant to the
Company's Deferred Compensation Plan, if at the time of payment they have not
met the stock ownership guidelines set by the Committee. No amount in excess of
the amount of the Incentive Award deferred shall be payable to the participant
for such deferral, except as may be based upon the actual future rate of return
on such specified predetermined investment.

         Section 8. Impact on Benefit Plans. Payments under the Plan shall not
be considered as earnings for purposes of the Company's qualified retirement
plans or any such retirement or benefit plan unless specifically provided for
and defined under such plans.

         Section 9. Tax Consequences. It is intended that nothing in this Plan
shall change the tax consequences of the Plan under Federal or State law and
specifically shall not cause the participants in the Plan to be taxed currently
under the Constructive Receipt or Economic Benefit Doctrines and as expressed in
Sections 451 and 83 of the Code. The terms, requirements and limitations of this
Plan shall be interpreted and applied in a manner consistent with Section 162(m)
of the Code.

         Section 10. Change of Status. In making decisions regarding employees'
participation in the Plan, the Committee may consider any factors that they may
consider relevant. The following guidelines are provided as general information
regarding employee status changes:

         (a)    New Hire, Transfer, Promotion. A newly hired employee will
                participate in the Plan Year following the year in which they
                are hired, unless otherwise specified in their employment offer.
                An employee who is promoted or transferred during the first 90
                day period of the Plan Year to a position qualifying for
                participation may be recommended for a pro rata Incentive Award
                under the Plan based on the level of participation in his or her
                previous program and the percentage of the Plan Year the
                employee is in the participating position. This includes
                employees who leave positions that qualify for incentive
                payments in other Company business segments. These potential
                payments shall be considered when determining the employee's
                Incentive Target and Incentive Award under this Plan.

         (b)    Demotion. No Incentive Award shall be paid to an employee who
                has been demoted during the Plan Year because of performance. If
                the demotion is due to an

<PAGE>   4

                organizational change, a pro rata Incentive Award may be made,
                provided the employee otherwise qualifies for payment of an
                Incentive Award.

         (c)    Termination. No Incentive Award shall be paid to any employee
                whose services are terminated during the Plan Year for reasons
                of misconduct, failure to perform, or other cause. If the
                termination is due to reasons such as reorganization, and not
                due to the fault of the employee, the employee may be considered
                for a pro rata Incentive Award, provided the employee otherwise
                qualifies for payment of an Incentive Award.

         (d)    Resignation. No Incentive Award shall be paid to an employee who
                resigns for any reason before Incentive Awards are paid,
                provided, however, if the employee has voluntarily terminated
                his or her employment with the Company's consent, a pro rata
                Incentive Award may be made, provided the employee otherwise
                qualifies for payment of an Incentive Award.

         (e)    Death and Disability. An employee whose status as an active
                employee is changed during the Plan Year for any reason other
                than the reasons cited above, including termination for death or
                disability, may be considered for a pro rata Incentive Award,
                provided the employee otherwise qualifies for payment of an
                Incentive Award. In the event that an Incentive Award is paid on
                behalf of an employee who has terminated employment by reason of
                death, any such payments or other amounts due shall be paid to
                the employee's estate.

Nothing in the Plan or in any Incentive Target or Incentive Award shall confer
any right on any employee to continue in the employ of the Company, its
affiliates or any business unit.

         Section 11. Dispute Resolution. The following is the exclusive
procedure to be followed by all participants in resolving disputes arising from
payments made under this Plan. All disputes relative to a given Plan Year must
be presented to the Committee within thirty (30) days following the payment date
of the Incentive Award for that Plan Year, or the participant's right to dispute
a payment will be irrevocably waived. The employee with the concern will be
given an opportunity to present his or her issues to the Committee. A decision
will be rendered by the Committee within ten (10) business days of the meeting.
The Chairperson of the Committee will be responsible for preparing a written
version of the decision. The decision by the Committee regarding the matter is
final and binding on all Plan participants.

         Section 12. Amendment or Termination of this Plan. The Company's Board
of Directors or the Committee shall have the right to amend or terminate the
Plan at any time, provided, however, that the material terms of the Performance
Goals, including any amendments to the class of employees eligible to receive
compensation pursuant to, or participate in, the Plan, the criteria upon which
the Performance Goals are based or the maximum amount of compensation payable
hereunder, may not be amended without shareholder approval. No employee or
participant shall have any vested right to payment of any Incentive Award
hereunder prior to its payment. The Company shall notify affected employees in
writing of any amendment or Plan termination.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]