Document:

Exhibit 10.9

 

Equitable
Resources, Inc.

 

2006 PAYROLL DEDUCTION

 

AND

 

CONTRIBUTION PROGRAM

 

(as amended
and restated December 3, 2008)

 

 

EQUITABLE
RESOURCES, INC.

2006 PAYROLL DEDUCTION AND CONTRIBUTION
PROGRAM

 

TABLE OF
CONTENTS

 

	
  ARTICLE I

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Statement of Purpose

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  II - DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Base Salary

  	
  1

  
	
  2.2

  	
   

  	
  Code

  	
  1

  
	
  2.3

  	
   

  	
  Committee

  	
  1

  
	
  2.4

  	
   

  	
  Company

  	
  1

  
	
  2.5

  	
   

  	
  Company Benefit

  	
  1

  
	
  2.6

  	
   

  	
  Compensation

  	
  1

  
	
  2.7

  	
   

  	
  Contribution Amount

  	
  2

  
	
  2.8

  	
   

  	
  Eligible Employee

  	
  2

  
	
  2.9

  	
   

  	
  Employer

  	
  2

  
	
  2.10

  	
   

  	
  Participant

  	
  2

  
	
  2.11

  	
   

  	
  Payroll Deduction Authorization

  	
  2

  
	
  2.12

  	
   

  	
  Personal Retirement Annuity

  	
  2

  
	
  2.13

  	
   

  	
  Program Year

  	
  2

  
	
  2.14

  	
   

  	
  Program

  	
  2

  
	
  2.15

  	
   

  	
  Selected Affiliate

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  III - ELIGIBILITY AND PARTICIPATION

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Eligibility

  	
  3

  
	
  3.2

  	
   

  	
  Participation

  	
  3

  
	
  3.3

  	
   

  	
  Change in Participation Status

  	
  3

  
	
  3.4

  	
   

  	
  Ineligible Participant

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  IV - CONTRIBUTIONS AND COMPANY BENEFITS

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Contribution Amounts

  	
  4

  
	
  4.2

  	
   

  	
  Company Benefit

  	
  4

  
	
  4.3

  	
   

  	
  Contribution Amounts and Company Benefit Amounts

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V - PERSONAL
  RETIREMENT ANNUITIES

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  General

  	
  5

  
	
  5.2

  	
   

  	
  Terms of Personal Retirement Annuity

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI -
  ADMINISTRATION

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Committee

  	
  5

  
	
  6.2

  	
   

  	
  Agents

  	
  5

  
	
  6.3

  	
   

  	
  Binding Effect of Decisions

  	
  6

  
	
  6.4

  	
   

  	
  Indemnification of Committee

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII -
  AMENDMENT AND TERMINATION OF PROGRAM

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Amendment

  	
  6

  
	
  7.2

  	
   

  	
  Termination

  	
  6

  

 

i

 

	
  ARTICLE VIII -
  MISCELLANEOUS

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Funding

  	
  6

  
	
  8.2

  	
   

  	
  Nonassignability

  	
  7

  
	
  8.3

  	
   

  	
  No Acceleration of Benefits; No Deferred Compensation

  	
  7

  
	
  8.4

  	
   

  	
  Captions

  	
  7

  
	
  8.5

  	
   

  	
  Governing Law

  	
  7

  
	
  8.6

  	
   

  	
  Successors

  	
  7

  
	
  8.7

  	
   

  	
  No Right to Continued Service

  	
  7

  
	
  8.8

  	
   

  	
  Benefit Claims

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  I 

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT B

  	
  II 

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT C

  	
  III 

  

 

ii

 

ARTICLE I

 

1.1                               Statement
of Purpose

 

This is the Equitable Resources, Inc.
2006 Payroll Deduction and Contribution Program (the “Program”) made in the
form of this Program and in related payroll deduction authorization forms
between the Employer and certain management or highly compensated
employees.  The purpose of the Program is to provide a select group of
management and highly compensated employees of the Employer with the ability to
deposit portions of their compensation payable for services rendered to the
Employer in a Personal Retirement Annuity.  It is intended that the
Program will assist in attracting and retaining qualified individuals to serve
as officers and managers of the Employer.

 

ARTICLE II

 

DEFINITIONS

 

When used in this Program and initially
capitalized, the following words and phrases shall have the meanings indicated:

 

2.1                               Base
Salary.

 

“Base Salary” means a Participant’s base
earnings paid by the Employer to a Participant without regard to any increases
or decreases in base earnings as a result of an election between benefits or
cash provided under a plan of an Employer maintained pursuant to Section 125
or 401(k) of the Code.

 

2.2                               Code.

 

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

 

2.3                               Committee.

 

“Committee” has the meaning set forth in Section 6.1.

 

2.4                               Company.

 

“Company” means Equitable Resources, Inc.
and any successor thereto.

 

2.5                               Company
Benefit.

 

“Company Benefit” means the benefit payable
to the Personal Retirement Annuity on behalf of the Participant pursuant to Section 4.2.

 

2.6                               Compensation.

 

“Compensation” means the Base Salary payable
with respect to an Eligible Employee for each Program Year in excess of the
salary taken into account for purposes of determining a Participant’s deferrals
under the Equitable 401(k) Plan, as hereinafter defined.

 

1

 

2.7                               Contribution
Amount.

 

“Contribution Amount” means the amount
contributed to the Personal Retirement Annuity by a Participant under Section 4.1.

 

2.8                               Eligible
Employee.

 

“Eligible Employee” means a highly
compensated or management employee of the Employer who is designated by the
Committee, by name or group or description, in accordance with Section 3.1,
as eligible to participate in the Program.

 

2.9                               Employer.

 

“Employer” means, with respect to a
Participant, the Company or the Selected Affiliate which pays such Participant’s
Compensation.

 

2.10                        Participant.

 

“Participant” means any Eligible Employee who
elects to participate by filing a Payroll Deduction Authorization.

 

2.11                        Payroll
Deduction Authorization.

 

“Payroll Deduction Authorization” means the
written authorization made by a Participant to permit the Employer to deduct
amounts from the Participant’s Compensation and contribute such amounts to the
Personal Retirement Annuity on the Participant’s behalf.

 

2.12                        Personal
Retirement Annuity.

 

“Personal Retirement Annuity” means the
annuity described in Section 5.1.

 

2.13                        Program
Year.

 

“Program Year” means each twelve-month period
commencing January 1 and ending December 31, except that the first
Program Year shall commence on August 14, 2006 and end on December 31,
2006.

 

2.14                        Program.

 

“Program” means the Equitable Resources, Inc.
2006 Payroll Deduction and Contribution Program, as amended from time to time.

 

2.15                        Selected
Affiliate.

 

“Selected Affiliate” means (1) any
company in an unbroken chain of companies beginning with the Company if each of
the companies other than the last company in the chain owns or controls,
directly or indirectly, stock possessing not less than 50 percent of the total
combined voting power of all classes of stock in one of the other companies, or
(2) any 

 

2

 

partnership or joint venture in which one or more of such companies is
a partner or venturer, each of which shall be selected by the Committee.

 

ARTICLE III

 

ELIGIBILITY AND
PARTICIPATION

 

3.1                               Eligibility.

 

Eligibility to participate in the Program is
limited to Eligible Employees.  From time to time, and subject to Section 3.4,
the Committee shall prepare, and attach to the Program as Exhibit A, a
complete list of the Eligible Employees, by individual name or by reference to
an identifiable group of persons or by descriptions of individuals which would
qualify as individuals who are eligible to participate, and all of whom shall
be a select group of management or highly compensated employees.

 

3.2                               Participation.

 

Participation in the Program shall be limited
to Eligible Employees who elect to participate in the Program by filing a
Payroll Deduction Authorization with the Committee.  An Eligible Employee
shall commence participation in the Program upon the first day of each Program
Year, following the receipt of his or her Payroll Deduction Authorization by
the Committee in the preceding calendar year or within 30 days of first
becoming eligible to participate in the Program, if such date occurs after the
commencement of the Program Year; provided further that, for the first Program
Year the Participant may file his or her Payroll Deduction Authorization within
thirty days after commencement of the first Program Year.  Unless and
until terminated, Payroll Deduction Authorizations will remain effective from
year to year.

 

3.3                               Change
in Participation Status.

 

A Participant may terminate his or her
participation in the Program at any time during a Program Year.

 

3.4                               Ineligible
Participant

 

Notwithstanding any other provisions of this
Program to the contrary, if the Committee determines that any Participant may
not qualify as a member of a select group of “management or highly compensated
employee” within the meaning of the Employee Retirement Income Security Act of
1974, as amended, (“ERISA”) or regulations thereunder, the Committee may
determine, in its sole discretion, that such Participant shall cease to be
eligible to participate in this Program.

 

3

 

ARTICLE IV

 

CONTRIBUTIONS
AND COMPANY BENEFITS

 

4.1                               Contribution
Amounts.

 

With respect to each Program Year, a
Participant may elect a payroll deduction of a specified percentage of his or
her Compensation as provided in Exhibit B by filing a Payroll Deduction
Authorization prior to the commencement of the Program Year or, in the case of
the first Program Year or the first year in which a Participant becomes
eligible to participate after commencement of the Program Year, within
30 days after the commencement of the first Program Year or initial
eligibility, as the case may be.  A Participant may change the percentage
of his or her Compensation to be deducted at any time during a Program Year.

 

4.2                               Company
Benefit.

 

The Employer shall provide a Company Benefit
under this Program with respect to each Participant who is eligible to be
allocated matching contributions and/or performance contributions (also known
as “retirement contributions”) under the Equitable Resources, Inc.
Employee Savings Plan, originally adopted September 1, 1985, as amended (“Equitable
401(k) Plan”).  The total Company Benefit under this Program on
behalf of a Participant for a Program Year shall be equal to the matching and
performance contributions which would be credited to the Participant under the
Equitable 401(k) Plan based upon the Participant’s Contribution Amount,
absent the limitations of Sections 402(g), 401(a)(17), and 415 of the
Code.  Except as expressly provided herein, which express provisions
include the time and form of payment applicable to Contribution Amounts and
Company Benefits, the terms and conditions of any Company Benefit provided
under this Program shall be the same as provided in the Equitable 401(k) Plan.

 

4.3                               Contribution
Amounts and Company Benefit Amounts.

 

(a)                                  Contribution
Amounts.  Participant’s Contribution Amounts shall be contributed by
the Employer to the Participant’s Personal Retirement Annuity on an after-tax
basis in accordance with the Employer’s normal payroll practices.  To the
extent that the Employer is required to withhold any taxes or other amounts
from Participants’ Contribution Amounts pursuant to any state, federal or local
law, such amounts shall be withheld from the Participants’ Contribution
Amounts.

 

(b)                                 Company Benefits. 
The Company Benefit under the Program for each Participant shall be contributed
by the Employer to the Participant’s Personal Retirement Annuity on an after-tax
basis on the last business day of each calendar month, provided that the
Participant is employed by the Employer or selected Affiliated on such date and
has not terminated his or her participation in the Plan; provided, further,
that in no event shall any Company Benefit be contributed to the Participant’s
Personal Retirement Annuity later than 21⁄2 months following the year in which
the Participant received a vested right to such amounts and such amounts were
no longer subject to a substantial risk of forfeiture, within the meaning of Section 409A
of the Code.  If a Participant ceases to be employed by the Company prior
to the last business day of a 

 

4

 

month or has terminated his or her participation in the Plan prior to
such day, the Company Benefit for such month shall be forfeited without any
further action required by the Company.

 

ARTICLE V

 

PERSONAL RETIREMENT
ANNUITIES

 

5.1                               General.

 

The Personal Retirement Annuity to which
Contribution Amounts and Company Benefits will be contributed is listed on Exhibit C,
hereto, and may be changed by the Committee in its discretion, on a prospective
basis, from time to time.

 

5.2                               Terms
of Personal Retirement Annuity.

 

The terms of the Personal Retirement Annuity,
which is owned by the Participant, shall be as provided solely by the sponsor
of such annuity, including the investment returns and elections, payment and
withdrawal provisions and statements of account.  The election of
investments within a Personal Retirement Annuity shall be the sole
responsibility of each Participant.  The Company, the Employer, their
employees and Committee members are not authorized to make any recommendation
to any Participant with respect to such election.  Each Participant assumes
all risk connected with any adjustment to the value of his or her Personal
Retirement Annuity.  Neither the Committee, the Company, nor the Employer
in any way guarantees against loss or depreciation.

 

ARTICLE VI

 

ADMINISTRATION

 

6.1                               Committee.

 

The administrative committee for the Program
(the “Committee”) shall be the Benefits Administration Committee of the
Company.  The Committee shall have (i) complete discretion to
supervise the administration and operation of the Program, (ii) complete
discretion to adopt rules and procedures governing the Program from time
to time, and (iii) sole authority to give interpretive rulings with
respect to the Program.

 

6.2                               Agents.

 

The Committee may appoint an individual, who
may be an employee of the Company, to be the Committee’s agent with respect to
the day-to-day administration of the Program.  In addition, the Committee
may, from time to time, employ other agents and delegate to them such
administrative duties as it sees fit, and may from time to time consult with
counsel who may be counsel to the Company.

 

5

 

6.3                               Binding
Effect of Decisions.

 

Any decision or action of the Committee with
respect to any question arising out of or in connection with the
administration, interpretation and application of the Program shall be final
and binding upon all persons having any interest in the Program.

 

6.4                               Indemnification
of Committee.

 

The Company shall indemnify and hold harmless
the members of the Committee and the Benefits Investment Committee and their
duly appointed agents under Section 6.2 against any and all claims, loss,
damage, expense or liability arising from any action or failure to act with
respect to the Program, except in the case of gross negligence or willful misconduct
by any such member or agent of the Committee or Benefits Investment Committee.

 

ARTICLE VII

 

AMENDMENT AND TERMINATION OF PROGRAM

 

7.1                               Amendment.

 

The Company, on behalf of itself and of each
Selected Affiliate may at any time amend, suspend or reinstate any or all of
the provisions of the Program, except that no such amendment, suspension or
reinstatement may adversely affect any Participant’s Personal Retirement
Annuity as it existed as of the day before the effective date of such
amendment, suspension or reinstatement, without such Participant’s prior
written consent.  Written notice of any amendment or other action with
respect to the Program shall be given to each Participant.

 

7.2                               Termination.

 

The Company, on behalf of itself and of each
Selected Affiliate, in its sole discretion, may terminate this Program at any
time and for any reason whatsoever.  A termination of the Program shall
not adversely affect any Participant’s Personal Retirement Annuity as it
existed on the day before such termination, without the Participant’s prior
written consent.

 

ARTICLE VIII

 

MISCELLANEOUS

 

8.1                               Funding.

 

Participants and their heirs, successors and
assigns, shall have no secured interest or claim in any property or assets of
the Employer or the Company.  The Employer’s and the Company’s obligation
under the Program to deposit Contribution Amounts and Company Benefits to a
Participant’s Personal Retirement Annuity shall be merely that of an unfunded
and unsecured promise.  To the extent that any Participant or other person
acquires a right to receive payments under the Program, such right shall be no
greater than the right, and each Participant shall at all times have the
status, of a general unsecured creditor of the Company or any Employer.

 

6

 

8.2                               Nonassignability.

 

No right or interest under the Program of a
Participant (or any person claiming through or under him or her) shall be
assignable or transferable in any manner or be subject to alienation,
anticipation, sale, pledge, encumbrance or other legal process or in any manner
be liable for or subject to the debts or liabilities of any such
Participant.  If any Participant shall attempt to or shall transfer,
assign, alienate, anticipate, sell, pledge or otherwise encumber his or her
benefits hereunder or any part thereof, or if by reason of his or her
bankruptcy or other event happening at any time such benefits would devolve
upon anyone else or would not be enjoyed by him or her, then the Committee, in
its discretion, may terminate his or her interest in any such benefit to the
extent the Committee considers necessary or advisable to prevent or limit the
effects of such occurrence.  Termination shall be effected by filing a
written “termination declaration” with the Clerk of the Company and making
reasonable efforts to deliver a copy to the Participant whose interest is
adversely affected (the “Terminated Participant”).

 

8.3                               No
Acceleration of Benefits; No Deferred Compensation.

 

This Program is not intended to provide for
the deferral of compensation and there shall be no acceleration of the time or
schedule of any payments or contributions under the Program.

 

8.4                               Captions.

 

The captions contained herein are for
convenience only and shall not control or affect the meaning or construction
hereof.

 

8.5                               Governing
Law.

 

The provisions of the Program shall be
construed and interpreted according to the laws of the Commonwealth of
Pennsylvania without regard to its conflicts of laws provisions.

 

8.6                               Successors.

 

The provisions of the Program shall bind and
inure to the benefit of the Company, the Employer, and their respective
successors and assigns.  The term successors as used herein shall include
any corporate or other business entity which shall, whether by merger, consolidation,
purchase or otherwise, acquire all or substantially all of the business and
assets of the Company or an Employer and successors of any such Company or
other business entity.

 

8.7                               No
Right to Continued Service.

 

Nothing contained herein shall be construed
to confer upon any Eligible Employee the right to continue to serve as an
Eligible Employee of an Employer or in any other capacity.

 

8.8                               Benefit
Claims.

 

(a)                                  Initial Claims.  To make a claim for a
benefit, a Participant may file a written request for such benefit with the
Committee, setting forth the claim.  The Committee shall reply 

 

7

 

to the claim within 90 days of its receipt (but may extend such time up
to an additional 90 days for reasonable cause).

 

(b)                                 Denied Claims.  If the Committee
denies a claim, the Committee shall send the Participant a denial notice
setting forth the specific reasons for such denial; references to pertinent
provisions of this Plan; a description of any additional material or
information necessary to perfect the claim and an explanation why such material
or such information is necessary; information as to the steps to be taken to
submit the claim for review and the applicable time limit for requesting a
review; and a statement of the Participant’s right to bring an action under Section 502
of ERISA upon the denial of the appeal of a previously denied claim.

 

(c)                                  Appealing a Claim.  The Participant or
the Participant’s authorized representative may make a written request within
60 days of the denial to the Committee to review the denial.  The
Participant may review the pertinent documents and submit issues and comment in
writing for consideration by the Committee.  If the Participant does not
request a review of the initial determination within such 60-day period, he or
she will be barred from challenging the determination.  Within 60 days
after the Committee’s receipt of the Participant’s request for review, the
Participant will receive notice of the Committee’s decision.  If the claim
is denied, the notice will contain the specific reasons for the decision;
specific references to the pertinent provisions of this Plan upon which the
decision is based; and a statement of the Participant’s right to bring an
action under Section 502 of ERISA.  If special circumstances require
that the 60-day time period be extended, the Committee will notify the
Participant and will render the decision as soon as possible, but no later than
120 days after receipt of the request for review.

 

8

 

EXHIBIT A

 

Re:                             Section 3.1 - Description of Eligible
Employees

 

The Committee has determined
that the following named individuals or groups or descriptions of persons which
would qualify as individuals who are eligible to participate in the Program as
Eligible Employees:

 

Employees salary grade 19 and above.

 

9

 

EXHIBIT B

 

Re:                             Section 4.1 - Amount of Payroll Deduction

 

Dated: 
July 25, 2006

 

As of the date above, and
effective until this Exhibit is modified by the Committee, the table below
indicates the type of compensation which is eligible for payroll deduction at
the assigned percentage as noted:

 

	
  Type of Compensation

  	
   

  	
  Maximum Percentage

  that can be deducted

  	
   

  	
  Other Limitations

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Base Salary

  	
   

  	
  15%

  	
   

  	
  Any amount over IRS salary
  deferral limit applicable to the Equitable 401(k) Plan.

  

 

10

 

EXHIBIT C

 

Personal Retirement Annuity

 

Fidelity Personal Retirement Annuity

 

11Exhibit 10.10

 

Equitable Resources, Inc.

 

DIRECTORS’ DEFERRED COMPENSATION PLAN

 

Amended and Restated as of May 15, 2003

 

 

ARTICLE I

 

1.1          Purpose of Plan.

 

This Equitable Resources, Inc.
Directors’ Deferred Compensation Plan (the “Plan”)
hereby is created to provide an opportunity for the members of the Board of
Directors of Equitable Resources, Inc. (the “Board”)
to defer payment of all or a portion of the fees to which they are entitled as
compensation for their services as members of the Board.  The Plan also shall provide for an award of
Phantom Stock to certain members of the Board and for the deferral of stock
units and phantom stock awarded pursuant to the 1999 Equitable Resources, Inc.
Non-Employee Directors’ Stock Incentive Plan (the “NEDSIP”).  In addition, Plan Participants shall be
entitled to direct the Company to transfer to this Plan directors’ fees
previously deferred under the 1980 Board of Directors’ Deferred Compensation
Plan as in effect prior to May 26, 1999 (the “Prior Plan”).  The Plan originally was effective as of May 26,
1999, and supersedes all prior deferred compensation and retirement plan
arrangements established or maintained for the benefit of non-employee members
of the Board.  The Plan was amended and
restated (i) as of May 16, 2000, to reflect a change in the benefits
committee structure of the Company, (ii) as of December 6, 2000 to
provide for increased flexibility in directing investment in available
investment options, and to modify vesting of Phantom Stock, and (iii) as
of May 15, 2003 to reflect the payment of deferred stock units to
non-employee directors in substitution for stock options.

 

ARTICLE II

 

DEFINITIONS

 

When used in this Plan and
initially capitalized, the following words and phrases shall have the meanings
indicated:

 

2.1          “Account” means the total of a
Participant’s Deferral Account, Phantom Stock Account and Transferred Amounts
Account under the Plan.

 

1

 

2.2          “Beneficiary” means the person or
persons designated or deemed to be designated by the Participant pursuant to Section 7.1
of the Plan to receive benefits payable under the Plan in the event of the
Participant’s death.

 

2.3          “Change in Control” means any of the
following events:

 

(a)                                  The sale or other disposition
by the Company of all or substantially all of its assets to a single purchaser
or to a group of purchasers, other than to a corporation with respect to which,
following such sale or disposition, more than eighty percent (80%) 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 the Board 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 the combined voting power of the then outstanding
voting securities immediately prior to such sale or disposition in substantially
the same proportion as their ownership of the outstanding Company common stock
and voting power immediately prior to such sale or disposition.

 

(b)                                 The acquisition in
one or more transactions by any person or group, directly or indirectly, of
beneficial ownership of twenty percent (20%) or more of the outstanding shares
of Company common stock or the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the election of
the Board; provided, however, that any acquisition by (x) the Company or
any of its subsidiaries, or any employee benefit plan (or related trust)
sponsored or maintained by the Company or any of its subsidiaries or (y) any
person 

 

2

 

that is eligible, pursuant to Rule 13d-1(b) under
the Exchange Act (as such rule is in effect as of November 1, 1995)
to file a statement on Schedule 13G with respect to its beneficial ownership of
Company common stock and other voting securities whether or not such person
shall have filed a statement on Schedule 13G, unless such person shall have
filed a statement on Schedule 13D with respect to beneficial ownership of
fifteen percent (15%) or more of the Company’s voting securities, shall not
constitute a Change in Control;

 

(c)                                  The Company’s
termination of its business and liquidation of its assets;

 

(d)                                 The reorganization,
merger or consolidation of the Company into or with another person or entity,
by which reorganization, merger or consolidation the persons who hold one
hundred percent (100%) of the voting securities of the Company prior to such
reorganization, merger or consolidation receive or continue to hold less than
sixty percent (60%) of the outstanding voting shares of the new or continuing
corporation; or

 

(e)                                  If, during any
two-year period, less than a majority of the members of the Board are persons
who were either (i) nominated or recommended for election by at least
two-thirds vote of the persons who were members of the Board or Nominating Committee
of the Board at the beginning of the period, or (ii) elected by at least
two-thirds vote of the persons who were members of the Board at the beginning
of the period.

 

2.4                               “Code” means the Internal
Revenue Code of 1986, as amended.

 

2.5                               “Committee” means the
Compensation Committee of the Board.

 

2.6          “Company” means Equitable Resources, Inc.
and any successor thereto.

 

3

 

2.7          “Deferral Account” means the
recordkeeping account established on the books and records of the Company to
record a Participant’s deferral amounts under Section 5.1 of the Plan,
plus or minus any investment gain or loss allocable thereto under Section 5.5
of the Plan.

 

2.8          “Directors’ Fees” means the fees that
are paid by the Company to members of the Board as compensation for services
performed by them as members of the Board.

 

2.9          “Enrollment Form” means the agreement
to participate and related elections filed by a Participant pursuant to Section 5.1
of the Plan, in the form prescribed by the Committee, directing the Company to
reduce the amount of Directors’ Fees otherwise currently payable to the
Participant and credit such amount to the Participant’s Deferral Account
hereunder.

 

2.10        “Hardship Withdrawal” shall have the
meaning set forth in Section 6.4 of the Plan.

 

2.11        “In-Service Distribution” shall have the meaning set forth
in Section 6.3 of the Plan.

 

2.12        “Investment Options” means the investment options
described in Appendix A to the Plan into which a Participant may direct all or
part of his or her Deferral Account and/or Transferred Amounts Account pursuant
to Section 5.2 of the Plan.

 

2.13        “Investment Return
Rate” means:

 

(a)                                  In the case of an
Investment Option named in Exhibit A of a fixed income nature, the
interest deemed to be credited as determined in accordance with the procedures
applicable to the same investment option provided under the Equitable Resources, Inc.
Employee Savings Plan, originally adopted September 1, 1985, as amended (“Equitable 401(k) Plan”);

 

(b)                                 In the case of a
Investment Option named in Exhibit A of an equity investment nature, the
increase or decrease in deemed value and any dividends deemed to be credited as
determined in accordance with the 

 

4

 

procedures applicable to the same investment
option provided under the Equitable 401(k) Plan; or

 

(c)                                  In the case of the
Equitable Resources Common Stock Fund, the increase or decrease in the deemed
value, and the reinvestment in the Equitable Resources Common Stock Fund of any
dividends deemed to be credited, as determined in accordance with the
procedures applicable to investments in the Equitable Resources Common Stock
Fund under the Equitable 401(k) Plan.

 

2.14        “Irrevocable Trust” means a grantor trust that may be established prior to the
occurrence of a Change in Control of the Company to assist the Company in
fulfilling its obligations under this Plan but which shall
be established by the Company in the event of a Change in Control of the
Company.  All amounts held in such
Irrevocable Trust shall remain subject to the claims of the general creditors
of the Company and Participants in this Plan shall have no greater rights to
any amounts held in any such Irrevocable Trust than any other unsecured general
creditor of the Company.

 

2.15        “Participant” means any non-employee member of
the Board who (i) receives an award of Phantom Stock pursuant to Section 4.1
of the Plan or an award of Phantom Stock under the NEDSIP, (ii) who elects
to participate in the Plan for purposes of deferring his or her Directors’ Fees
by filing an Enrollment Form with the Committee pursuant to Section 5.1
of the Plan, and/or (iii) who elects to transfer amounts previously
deferred under the Prior Plan to this Plan by filing a Transfer of Existing
Account Credits, or other form supplied by and/or acceptable to the Committee,
pursuant to Section 5.2 of the Plan.

 

5

 

2.16                        “Phantom
Stock” means those shares of the common stock or stock units of the Company:

 

(i)                                    conditionally
awarded to certain members of the Board in the amounts described in
Appendix B to the Plan,

 

(ii)                                 which are subject
to forfeiture in accordance with Section 6.1(a) of the Plan,

 

(iii)                              which are
contributed to the Irrevocable Trust by the Company to assist it in satisfying
its potential obligations under this Plan, and

 

(iv)                              which will be
distributed to eligible Plan Participants satisfying all the conditions of this
Plan, or

 

(v)                                 awarded pursuant to
the NEDSIP, and

 

(vi)                              which will be
distributed to eligible Plan Participants in the form elected by the Plan
Participant and at the time specified in the Phantom Stock Agreement referred
to in Section 2.18(ii) of the Plan.

 

2.17        “Phantom Stock Account” means the recordkeeping account
established on the books and records of the Company to record the number of
shares of Phantom Stock allocated to a Participant under the Plan.

 

2.18        “Phantom Stock
Agreement” means

 

(i)                                     the agreement filed
by a Participant pursuant to Section 4.1(a) of the Plan in the form
prescribed by the Committee directing the Company to convert the Participant’s
benefit under the Equitable Resources, Inc. Directors’ Defined Benefit
Plan (the “Defined Benefit Plan”) into
Phantom Stock 

 

6

 

under this Plan and relinquishing all rights to
any benefits under such Defined Benefit Plan, and

 

(ii)                                 any agreements
and/or terms of award of Phantom Stock under the NEDSIP pursuant to which
Phantom Stock is or may be deferred.

 

2.19        “Plan” means this Equitable Resources, Inc.
Directors’ Deferred Compensation Plan, as amended from time to time.

 

2.20        “Plan Year” means a twelve-month period
commencing January 1 and ending the following December 31.

 

2.21        “Prior Plan” means the 1980 Board of Director’s
Deferred Compensation Plan as in effect prior to May 26, 1999, under which
members of the Board were permitted to defer payment of all or a portion of the
fees to which they were entitled as compensation for their services as members
of the Board.

 

2.22        “Transferred Amounts Account” means the recordkeeping account
established on behalf of a Participant to account for those amounts previously
deferred under the Prior Plan which were transferred to this Plan by filing a
Transfer of Existing Account Credits, or other form supplied by and/or
acceptable to the Committee, pursuant to Section 5.2 of the Plan.

 

2.23        “Transfer of Existing Account Credits” means the form
filed with the Committee by a Participant directing the Committee to transfer
amounts previously deferred under the Prior Plan to this Plan.

 

2.24        “Valuation Date” means the last day of each
calendar quarter and any other date determined by the Committee or specified
herein.

 

2.25        “Year of Service” means the twelve (12) month period
beginning on the first day an individual is a member of the Board, and each
twelve (12) month period thereafter.

 

7

 

ARTICLE III

 

ELIGIBILITY AND PARTICIPATION

 

3.1          Eligibility for
Phantom Stock Account.

 

Eligibility to participate in
the Plan for purposes of the Phantom Stock Account under Article IV of the
Plan is limited to those non-employee members of the Board who are either (i) designated
by the Committee and listed on Exhibit B to the Plan or (ii) who
receive Phantom Stock pursuant to the terms of the NEDSIP.  An eligible Board member shall commence
participation in the Plan for purposes of the Phantom Stock Account on the
earlier of May 26, 1999 or the date on which an award of Phantom Stock is
made pursuant to the terms of the NEDSIP.

 

3.2          Eligibility for
Deferral Account.

 

Eligibility to participate in
the Plan for purposes of deferring Directors’ Fees under Section 5.1 of
the Plan is limited to non-employee members of the Board.  An eligible Board member shall commence
participation in the Plan for purposes of deferring Directors’ Fees as of the
first day of the month following the receipt of his or her Enrollment Form by
the Committee.

 

3.3          Eligibility for
Transferred Amounts Account.

 

Eligibility to elect to transfer
Transferred Amounts to this Plan is limited to those non-employee members of
the Board who were participants in the Prior Plan and who had accounts in the
Prior Plan as of May 25, 1999, representing fees for their prior service
as members of the Board which were previously deferred pursuant to the terms of
the Prior Plan.  An eligible Board member
not otherwise participating pursuant to Sections 3.1 or 3.2 of the Plan shall
become a Participant in the Plan and have a Transferred Amounts Account
established on his or her behalf as of the effective date of any transfer of
Transferred Amounts to this Plan.

 

8

 

3.4          Ineligible
Participant.

 

Notwithstanding any other
provisions of this Plan to the contrary, if the Committee determines that the
participation in the Plan by any Board member will jeopardize the status of the
Plan as exempt from the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), or regulations thereunder, the
Committee may, in its sole discretion, determine that such Participant shall
cease to be eligible to participate in the Plan.  As soon as administratively feasible
following such determination, the Company shall make a lump sum payment, in
cash and/or shares of Company common stock, as applicable, to the Participant
equal to the value of his or her Account as of the most recent Valuation Date,
less any income or employment tax withholding required under applicable
law.  Upon such payment, no benefit shall
thereafter be payable under this Plan either to the Participant or any
Beneficiary of the Participant, and all of the Participant’s elections as to
the time and manner of payment of his or her Account shall be deemed canceled.

 

ARTICLE IV

 

PHANTOM STOCK ACCOUNT

 

4.1          Phantom Stock Award.

 

(a)                                  As of May 26,
1999, the Phantom Stock Account of a Participant eligible for an award of
Phantom Stock pursuant to Section 3.1(i) of the Plan shall be
credited with an award of Phantom Stock in the number of shares specified in Exhibit B
to the Plan.  The Company shall
contribute shares of Company common stock to the Irrevocable Trust in an amount
equal to the aggregate number of shares of Phantom Stock credited to all
Phantom Stock Accounts under the Plan from such awards.  Any such contributions to an Irrevocable
Trust and related investments shall be solely to assist the 

 

9

 

Company in satisfying its obligations under this
Plan and no Participant shall have any right, title or interest whatsoever in
any such contributions or investments.

 

(b)                                 As of the date of
any Phantom Stock award pursuant to the terms of the NEDSIP, the Phantom Stock
Account of a Participant eligible for such award shall be credited with the
number of Phantom Stock units as specified in such award.  The Company shall not be required to
contribute any shares or other property to the Irrevocable Trust for such
awards.

 

4.2          Valuation of Phantom
Stock Account; Deemed Reinvestment of Dividends

 

As of each Valuation Date, the
value of a Participant’s Phantom Stock Account shall equal (i) the value
of the number of shares of Phantom Stock credited to such account as of the
last Valuation Date, plus (ii) the value of the number of shares of
Phantom Stock deemed to have been credited to such account as a result of the
deemed reinvestment of any dividends deemed to have been paid on such Phantom
Stock since the last Valuation Date.  Any
dividends paid on the common stock of the Company shall be deemed to be paid on
the Phantom Stock under the Plan in an equal amount; provided, however, that to
the extent they are paid in a form other than additional shares of the common
stock of the Company, they shall be deemed to be immediately reinvested in such
number of shares of the common stock of the Company as are represented by the
aggregate amount of the dividends divided by the value of one share of the
common stock of the Company on the date the dividend is paid.

 

For purposes of this Plan, the “value”
of a share of Phantom Stock shall be deemed to equal the closing price of a
share of Company common stock as listed on the New York Stock Exchange (“NYSE”) on any date of reference.  In the event that the date of reference is a
date on which the NYSE is not open for business, the value of a share of
Phantom Stock shall equal the average of the closing prices on the dates
immediately preceding and following the date of reference during

 

10

 

which the NYSE was open for
business.  Notwithstanding anything in
this Plan to the contrary, the Company may adopt alternate procedures for
determining the value of Phantom Stock in the event Company common stock ceases
to be traded on the NYSE or to reflect the occurrence of a Conversion Event
described in Section 4.3.

 

For purposes of determining the
value of the Phantom Stock credited to a Participant’s Phantom Stock Account as
of any time of reference, each share of Phantom Stock shall be deemed equivalent
in value to one share of the outstanding shares of common stock of the
Company.  For purposes of valuing a
Participant’s Phantom Stock Account upon the termination of his or her
membership on the Board, the Valuation Date shall be the business day coincident
with or immediately preceding the termination of the Participant’s Board
membership.

 

4.3          Adjustment and Substitution of Phantom Stock

 

In the event of:  (a) a stock split (or reverse stock
split) with respect to the common stock of the Company; (b) the conversion
of the common stock of the Company into another form of security or debt
instrument of the Company; (c) the reorganization, merger or consolidation
of the Company into or with another person or entity; or (d) any other
action which would alter the number of, and/or shareholder rights of, holders
of outstanding shares of the common stock of the Company (collectively, a “Conversion Event”), then, notwithstanding the fact that
Plan Participants have no rights to the shares of Company common stock
represented by their Phantom Stock Account nor to the shares of such Company
common stock which may be contributed by the Company to the Irrevocable Trust,
the number of shares of Phantom Stock then allocated to a Participant’s Phantom
Stock Account shall be deemed to be converted, to the extent possible, to
reflect any such Conversion Event to the same extent as the shares of holders
of outstanding shares of Company common stock would have been converted upon
the occurrence of the Conversion Event. 
On and after any such Conversion Event, this Plan shall be applied, mutatis mutandis, as if the Participant’s Phantom Stock
Account was comprised of the 

 

11

 

cash, securities, notes or other
instruments into which the outstanding shares of Company common stock was
converted.  Following the occurrence of a
Conversion Event, the Board is authorized to amend the Plan as it, in its sole
discretion, determines to be necessary or appropriate to address any administrative
or operational details presented by the Conversion Event which are not
addressed in the Plan.

 

4.4          Shareholder Rights.

 

Except as specifically provided
herein, an award of Phantom Stock under the Plan shall not entitle a
Participant to voting rights or any other rights of a shareholder of the
Company.

 

4.5          Statement of Phantom Stock Account.

 

As soon as administratively
feasible following the last day of each calendar quarter, the Committee shall
provide to each eligible Participant a statement of the value of his or her
Phantom Stock Account as of the most recent Valuation Date.

 

ARTICLE V

 

DEFERRAL ACCOUNT;
TRANSFERRED AMOUNTS ACCOUNT

 

5.1          Deferral of Directors’ Fees.

 

Any non-employee member of the
Board may elect to defer a specified percentage of his or her Directors’ Fees
under the Plan by submitting to the Committee a written Enrollment Form.  Such election shall be effective with respect
to Directors’ Fees paid for services performed by such Participant beginning
the first day of the month following the receipt by the Committee of the
Participant’s Enrollment Form and shall remain in effect until withdrawn
by the Participant by written notice to the Committee in accordance with
uniform rules established by the Committee; provided that a Participant
who withdraws his or her Enrollment Form during a Plan Year may not then
file another Enrollment Form with the Committee with respect to the same
Plan Year.  

 

12

 

The withdrawal by a Participant
of his or her Enrollment Form shall be effective with respect to Directors’
Fees payable on or after the first day of the month following the receipt of
such notice by the Committee.

 

5.2          Option to Establish a Transferred Amounts Account

 

Any non-employee member of the
Board may elect to have amounts previously deferred under the Prior Plan
transferred to this Plan by filing with the Committee a Transfer of Existing
Account Credits, or other form supplied by and/or acceptable to the Committee.  Such election may be made at any time;
provided, however, that any such election must represent the transfer to this
Plan of the eligible non-employee Board member’s entire account under the Prior
Plan.  Upon receipt of any such election,
the Committee shall cause a Transferred Amounts Account to be established for
the Participant under this Plan documenting the amount initially
transferred.  Except to the extent
necessary to comply with any applicable law or regulation, in the event that a
Participant electing to transfer a Transferred Amount from the Prior Plan
previously elected (or subsequently elects) to defer Director’s Fees under the
Plan by filing with the Committee a written Enrollment Form, a separate
Transferred Amounts Account will not be maintained after the initial transfer
to the Plan and all Transferred Amounts shall be commingled with and invested
and reinvested in the same manner as a Participant’s Deferral Account
hereunder.

 

5.3          Investment Direction.

 

A Participant may direct that amounts deferred
pursuant to his or her Enrollment Form (and/or, as the context so
requires, amounts deferred under the Prior Plan which are transferred to this
Plan in accordance with an election made pursuant to Section 5.2) be
deemed to be invested in one or more of the Investment Options listed in Exhibit A
to the Plan (a “New Money Election”) and credited
with shares or units in each such Investment Option in the same manner as
equivalent contributions would be invested under the same Investment Options
available under the Equitable 401(k) Plan. 
Except as otherwise provided with respect to directions to 

 

13

 

invest in the Equitable Resources Common Stock Fund (“Company Stock Fund”), a Participant may direct that amounts
previously credited to his or her Deferral Account and/or Transferred Amount
Account and deemed invested in the available Investment Options be transferred
between and among the then available Investment Options (a “Reallocation
Election”).

 

Special rules apply to
directions to invest in the Company Stock Fund. 
No restrictions are placed on New Money Elections.  Accordingly, a Participant may make a New
Money Election to invest in the Company Stock Fund or to cease future
investments in such Fund in the same manner as any other Investment
Option.  Reallocation Elections, however,
may not direct that amounts previously
credited to a Participant’s Deferral Account and/or Transferred Amount Account
and which were directed to be invested in the Company Stock Fund be transferred
out of such Fund and into another
Investment Option.

 

Reallocation Elections into the Company Stock Fund are
permitted.  Accordingly, no restrictions
apply to Reallocation Elections directing that amounts previously credited to a
Participant’s Deferral Account and/or Transferred Amount Account and which were
directed to be invested in an Investment Option other
than the Company Stock Fund be transferred out of such other
Investment Option and into the Company Stock Fund.

 

Except as otherwise provided
with respect to the Company common stock, regardless of whether the investment
direction is a New Money Election or a Reallocation Election, a Participant’s
Deferral Account and/or Transferred Amount Account shall only be deemed to be
invested in such Investment Options for purposes of crediting investment gain
or loss under Section 5.5 of the Plan and the Company shall not be
required to actually invest, on behalf of any Participant, in any Investment
Option listed on Exhibit A to the Plan. 
Notwithstanding the preceding sentence, the Company may, but shall not
be required to, elect to make contributions to an Irrevocable Trust in an
amount equal to the amounts deferred by Participants and actually invest such
contributions in the Investment Options elected by a particular Participant; provided,
however,  

 

14

 

that the Company shall
contribute shares of Company common stock to the Irrevocable Trust in an amount
equal to the aggregate number of shares of Company common stock represented by
Participant investment directions to the Company Stock Fund.  Any such contributions to an Irrevocable
Trust and related investments shall be solely to assist the Company in
satisfying its obligations under this Plan and no Participant shall have any
right, title or interest whatsoever in any such contributions or investments.

 

All investment elections shall be made by written
notice to the Committee in accordance with uniform procedures established by
the Committee; provided, however, that investment directions to an Investment
Option must be in multiples of whole percents (1%) or whole dollars
($1.00).  Any such investment election
shall be effective as of the Valuation Date immediately following the date on
which the written notice is received and shall remain in effect until changed
by the Participant.  In the event that a
Participant fails to direct the investment of his or her account, the Committee
shall direct such Participant’s Deferral Account and/or Transferred Amounts
Account to an Investment Option named in Exhibit A of a fixed income
nature.

 

5.4          No Right to Investment Options.

 

Notwithstanding anything in the
Plan to the contrary, the Investment Options offered under the Plan may be
changed or eliminated at any time in the sole discretion of the Benefits
Investment Committee of the Company. 
Prior to the change or elimination of any Investment Option under the
Plan, the Committee shall provide written notice to each Participant with
respect to whom a Deferral Account and/or Transferred Amount Account is
maintained under the Plan and any Participant who has directed any part of his
or her Deferral Account and/or Transferred Amount Account to such Investment
Option shall be permitted to redirect such portion of his or her Deferral
Account and/or Transferred Amount Account to another Investment Option offered
under the Plan.

 

15

 

5.5          Crediting of Investment Return.

 

Each Participant’s Deferral
Account and/or Transferred Amount Account shall be credited with deemed
investment gain or loss at the Investment Return Rate as of each Valuation
Date, based on the average daily balance of the Participant’s Deferral Account
and/or Transferred Amount Account since the immediately preceding Valuation
Date, but after such Deferral Account and/or Transferred Amount Account has
been adjusted for any contributions or distributions to be credited or deducted
for such period.  Until a Participant or
his or her Beneficiary receives his or her entire Deferral Account and/or
Transferred Amount Account, the unpaid balance thereof shall be credited with
investment gain or loss at the Investment Return Rate, as provided in this Section 5.5
of the Plan.

 

5.6          Valuation of Deferral Account.

 

As of each Valuation Date, a
Participant’s Deferral Account and/or Transferred Amount Account shall equal (i) the
balance of the Participant’s Deferral Account and/or Transferred Amount Account
as of the immediately preceding Valuation Date, plus (ii) the Participant’s
deferred Directors’ Fees since the immediately preceding Valuation Date, plus
or minus (iii) investment gain or loss credited as of such Valuation Date
pursuant to Section 5.5 of the Plan, and minus (iv) the aggregate
amount of distributions, if any, made from such Deferral Account and/or
Transferred Amount Account since the immediately preceding Valuation Date.  For purposes of valuing a Participant’s
Deferral Account and/or Transferred Amount Account upon the termination of the
Participant’s membership on the Board, the Valuation Date shall be the business
day coinciding with or immediately preceding the date of the termination of the
Participant’s Board membership.

 

16

 

5.7          Statement of Deferral Account and/or Transferred Amount
Account.

 

As soon as administratively
feasible following the last day of each calendar quarter, the Committee shall
provide to each Participant a statement of the value of his or her Deferral
Account and/or Transferred Amount Account as of the most recent Valuation Date.

 

ARTICLE VI

 

PAYMENT OF BENEFITS

 

6.1          Payment of Phantom Stock Account.

 

(a)                                  As soon as
administratively feasible following a Participant’s termination of membership
on the Board for any reason, and in accordance with the election provided in Section 6.5
of the Plan, the Company shall distribute to the Participant or, in the event
of the Participant’s death, to his Beneficiary, the number of shares of Company
common stock payable, based on awards credited to the Participant’s Phantom
Stock Account pursuant to Section 4.1(a) of the Plan, as determined
in accordance with Article IV of the Plan, less any income tax withholding
required under applicable law.

 

(b)                                 As soon as
administratively feasible following the date provided for payment pursuant to
the terms of a Phantom Stock Agreement described in Section 2.18(ii) of
the Plan, and in accordance with the election provided in Section 6.5 of
the Plan, the Company shall pay or distribute to the Participant or, in the event
of the Participant’s death, to his Beneficiary, either an amount equal to the
value of the Participant’s Phantom Stock Account then payable, or the number of
shares of Company common stock then payable, whichever form is elected by the 

 

17

 

Participant, based on awards credited to the
Participant’s Phantom Stock Account pursuant to Section 4.1(b) of the
Plan, as determined in accordance with Article IV of the Plan, less any
income tax withholding required under applicable law.

 

6.2          Payment of Deferral and/or Transferred Amounts Account

 

As soon as administratively
feasible following a Participant’s termination of membership on the Board and
in accordance with the election provided in Section 6.5 of the Plan, and
without regard to whether the Participant is entitled to payment of his or her
Phantom Stock Account, the Company shall pay to the Participant or, in the
event of the Participant’s death, to his Beneficiary, an amount equal to the  value of the Participant’s Deferral Account and/or
Transferred Amount Account, as determined in accordance with Article V of
the Plan, less any income tax withholding required under applicable law.  Except as otherwise provided in the following
sentence, such payment shall be made in cash in the form elected by the
Participant pursuant to Section 6.5 of the Plan.  Notwithstanding the preceding sentence, to
the extent the Participant had directed that any portion of his Deferral
Account and/or Transferred Amount Account be invested in the Company Stock
Fund, the Company shall distribute such portion in such number of shares of
Equitable Resources Common Stock as would be represented by an equal amount
invested in the Company Stock Fund under the Company 401(k) Plan.

 

6.3          In-Service Distribution of Deferral and/or Transferred
Amounts Account.

 

A Participant may make an
irrevocable election to receive a distribution of all or a specified dollar
amount of his or her Deferral Account and/or Transferred Amount Account on a
date certain in the future prior to the termination of his or her membership on
the Board (an “In-Service Distribution”);
provided that such In-Service Distribution shall be subject to any income tax
withholding required under applicable law. 
Such election must be made in writing at 

 

18

 

the time the Participant first
elects to participate in this Plan by filing an Enrollment Form with the
Committee.

 

For purposes of reducing a
Participant’s Deferral Account and/or Transferred Amount Account and adjusting
the balances in the various Investment Options in which such reduced Deferral
Account and/or Transferred Amount Account is deemed to be invested to reflect
such In-Service Distribution, amounts represented by such In-Service
Distribution shall be deemed to have been withdrawn first, on a pro rata basis,
from that portion of his Deferral Account and/or Transferred Amounts Account
deemed to be invested in Investment Options other
than the Equitable Common Stock Fund (the “Non Stock
Investments”) and, second, to the extent the In-Service Distribution
cannot be fully satisfied by a deemed withdrawal of the Non Stock Investments,
from the portion deemed invested in the Company Stock Fund.

 

Any such In-Service Distribution
shall be made in one lump sum cash payment. 
Notwithstanding the preceding sentence, to the extent the Participant
had directed that any portion of his Deferral Account and/or Transferred Amount
Account be invested in the Company Stock Fund, the Company shall distribute
such portion in such number of shares of Equitable Resources Common Stock as
would be represented by an equal amount invested in the Company Stock Fund
under the Company 401(k) Plan.

 

6.4          Hardship Withdrawal from Deferral and/or Transferred Amounts
Account.

 

In the event that the Committee,
in its sole discretion, determines upon the written request of a Participant in
accordance with uniform procedures established by the Committee, that the
Participant has suffered an unforeseeable financial emergency, the Company may
pay to the Participant in a lump sum as soon as administratively feasible
following such determination, an amount necessary to meet the emergency, but
not exceeding the aggregate balance of such Participant’s Deferral Account and/or
Transferred Amount Account as of the date of such 

 

19

 

payment (a “Hardship
Withdrawal”).  Any such
Hardship Withdrawal shall be subject to any income tax withholding required
under applicable law.

 

For purposes of this Section 6.4,
an “unforeseeable financial emergency” shall mean an event that the Committee
determines to give rise to an unexpected need for cash arising from an illness,
casualty loss, sudden financial reversal, or other such unforeseeable
occurrence.  The amount of a Hardship
Withdrawal may not exceed the amount the Committee reasonably determines to be
necessary to meet such emergency needs (including taxes incurred by reason of a
taxable distribution).

 

The form of payment of the
Hardship Withdrawal, the amount of the Participant’s Deferral Account and/or
Transferred Amount Account otherwise payable, and the amounts deemed credited
to the Investment Options under the Plan shall be paid, reduced and adjusted to
reflect the payment of the Hardship Withdrawal in the same manner described in Section 6.3
applicable to In-Service Distributions.

 

6.5          Form of Payment.

 

(a)           In General. 
A Participant may elect to receive that portion of his or her Account
payable hereunder in one of the following forms:

 

(i)                                     Annual payments of
a fixed amount which shall amortize the value of the Account over a period of
five, ten, or fifteen years (together, in the case of each annual payment, with
interest and dividends credited thereto after the payment commencement date
pursuant to Sections 4.2 and 5.5 of the Plan); or

 

(ii)                                  A lump sum.

 

20

 

Such an election must be made in
writing in accordance with uniform procedures established by the Committee no
later than the date that is one (1) year and one (1) day prior to the
date of the Participant’s termination as a member of the Board.  In the event a Participant fails to make a
distribution election within the time period prescribed, his or her Account
shall be distributed in the form of a lump sum.

 

(b)           Distribution of Company Common
Stock.  In the event the Company is
required to distribute some or all of a Participant’s Account in shares of
Equitable Resources Common Stock in accordance with Plan Sections 6.1 and/or 6.2,
the aggregate amount of such shares shall be distributed in the same manner as
the Participant elected in subsection (a). 
To the extent the Participant elected an installment form of payment,
the number of shares of Equitable Common Stock to be distributed in each
installment shall be determined by multiplying (i) the aggregate number of
shares of Equitable Resources Common Stock deemed credited to the Participant’s
Account as of the installment payment date by (ii) a fraction, the
numerator of which is one and the denominator of which is the number of unpaid
installments, and by rounding the resulting number down to the next whole
number.

 

6.6          Payments to Beneficiaries.

 

In the event of a Participant’s
death prior to the Participant’s termination of membership on the Board, the
Participant’s Beneficiary shall receive payment of the Phantom Stock Account
(if any), Participant’s Deferral Account and/or Transferred Amount Account as
soon as administratively feasible following the Participant’s death in the form
elected by the Participant pursuant to Section 6.5 of the Plan, less any
income tax withholding required under applicable law.  If no such election was made by the
Participant, the Participant’s Beneficiary shall receive payment of the
Participant’s Account in the form of a lump sum.  In the event of the Participant’s death after
commencement of installment payments under the Plan, but prior to receipt of
his or her entire Account (including, by way of clarification, the Participant’s
Phantom Stock Account,

 

21

 

if any), the Participant’s
Beneficiary shall receive the remaining installment payments at such times as
such installments would have been paid to the Participant until the Participant’s
entire Account is paid.

 

6.7          Small Benefit.

 

In the event that the value of a
Participant’s Account is less than $5,000 as of the Valuation Date immediately
preceding the commencement of payment to the Participant under the Plan, or the
balance of the Participant’s Account payable to any Beneficiary is less than
$5,000 as of the Valuation Date immediately preceding the commencement of
payment to the Participant’s Beneficiary under the Plan, the Committee may
inform the Company and the Company, in its discretion, may choose to pay the
benefit in the form of a lump sum, notwithstanding any provision of the Plan or
an election of a Participant under Section 6.5 of the Plan to the
contrary.

 

ARTICLE VII

 

BENEFICIARY DESIGNATION

 

7.1          Beneficiary
Designation.

 

Each Participant shall have the
sole right, at any time, to designate any person or persons as his or her
Beneficiary to whom payment may be made of any amounts which may become payable
in the event of his or her death prior to the complete distribution to the
Participant of his or her Account.  Any
Beneficiary designation shall be made in writing in accordance with uniform
procedures established by the Committee. 
A Participant’s most recent Beneficiary designation shall supersede all
prior Beneficiary designations.  In the
event a Participant does not designate a Beneficiary under the Plan, any
payments due under the Plan shall be made first to the Participant’s spouse; if
no spouse, then in equal amounts to the Participant’s children; if no children,
then to the Participant’s estate.

 

22

 

ARTICLE VIII

 

ADMINISTRATION

 

8.1          Committee.

 

The Committee shall have sole
discretion to:  (i) designate
non-employee directors eligible to participate in the Plan; (ii) interpret
the provisions of the Plan; (iii) supervise the administration and
operation of the Plan; and (iv) adopt rules and procedures governing
the Plan.

 

8.2          Investments.

 

The Benefits Investment
Committee of the Company shall have the sole discretion to choose the
Investment Options available under the Plan and to change or eliminate such
Investment Options, from time to time, as it deems appropriate.

 

8.3          Agents.

 

The Committee may delegate its
administrative duties under the Plan to one or more individuals, who may or may
not be employees of the Company.

 

8.4          Binding Effect of
Decisions.

 

Any decision or action of the
Committee with respect to any question arising out of or in connection with the
eligibility, participation, administration, interpretation, and application of
the Plan shall be final and binding upon all persons having any interest in the
Plan.

 

8.5          Indemnification of
Committees.

 

The Company shall indemnify and
hold harmless the members of the Committee and the Benefits Investment
Committee and their duly appointed agents under Section 8.3 against any
and all claims, losses, damages, expenses, or liabilities arising from any
action or failure to act 

 

23

 

with respect to the Plan, except
in the case of gross negligence or willful misconduct by any such member or
agent of the Committee or Benefits Investment Committee.

 

ARTICLE IX

 

AMENDMENT AND TERMINATION OF PLAN

 

9.1          Amendment.

 

The Company (or its delegate)
may at any time, or from time to time, modify or amend any or all of the
provisions of the Plan.  Where the action
is to be taken by the Company, it shall be accomplished by written action of
the Board at a meeting duly called at which a quorum is present and acting
throughout.  Where the action is to be
taken by a delegate of the Company, it shall be accomplished pursuant to any
procedures established in the instrument delegating the authority.  Regardless of whether the action is taken by
the Company or its delegate, no such modification or amendment shall have the effect
of reducing the value of any Participant’s Account under the Plan as it existed
as of the day before the effective date of such modification or amendment,
without such Participant’s prior written consent.  Written notice of any modification or
amendment to the Plan shall be provided to each Participant under the Plan.

 

9.2          Termination.

 

The Company, in its sole
discretion, may terminate this Plan at any time and for any reason whatsoever
by written action of the Board at a meeting duly called at which a quorum is
present and acting throughout; provided that such termination shall not have
the effect of reducing the value of any Participant’s Account under the Plan as
it existed on the day before the effective date of the termination of the Plan
without such Participant’s prior written consent.  Notwithstanding any Participant election to
the contrary, the Account of each Participant under the Plan shall be paid as
soon as administratively feasible following the termination of the Plan.  

 

24

 

The Valuation Date for purposes
of determining the value of Participants’ Accounts upon termination of the Plan
shall be the date prior to the date of the termination of the Plan.

 

ARTICLE X

 

MISCELLANEOUS

 

10.1        Funding.

 

The Company’s obligation to pay
benefits under the Plan shall be merely an unfunded and unsecured promise of
the Company to pay money in the future. 
Except as otherwise provided in Sections 4.1(a) and 5.3, prior
to the occurrence of a Change in Control, the Company, in its sole discretion,
may elect to make contributions to an Irrevocable Trust to assist the Company
in satisfying all or any portion of its obligations under the Plan.  Regardless of whether the Company elects to
or otherwise contributes to an Irrevocable Trust, Plan Participants, their
Beneficiaries, and their heirs, successors and assigns, shall have no secured
interest or right, title or claim in any property or assets of the Company.

 

Notwithstanding the foregoing,
upon the occurrence of an event resulting in a Change in Control, the Company
shall make a contribution to an Irrevocable Trust in an amount which, when
added to the then value of any amounts previously contributed to an Irrevocable
Trust to assist the Company in satisfying all or any portion of its obligations
under the Plan, shall be sufficient to bring the total value of assets held in
the Irrevocable Trust to an amount not less than the total value of all
Participants’ Accounts under the Plan as of the Valuation Date immediately
preceding the Change in Control; provided that any such funds contributed to an
Irrevocable Trust pursuant to this Section 10.1 shall remain subject to
the claims of the Company’s general creditors and provided, further, that such
contribution shall reflect any Conversion Event described in Section 4.3.  Upon the occurrence of the Change in Control
of the Company, all deferrals to the Plan shall cease, any adjustments required
by Section 4.3 shall be made and the 

 

25

 

Company shall provide to the
trustee of the Irrevocable Trust all Plan records and other information
necessary for the trustee to make payments to Participants under the Plan in
accordance with the terms of the Plan.

 

10.2        Nonassignability.

 

No right or interest of a
Participant or Beneficiary under the Plan may be assigned, transferred, or
subjected to alienation, anticipation, sale, pledge, encumbrance or other legal
process or in any manner be liable for or subject to the debts or liabilities
of any such Participant or Beneficiary, or any other person.

 

10.3        Legal Fees and
Expenses.

 

It is the intent of the Company
that no Participant be required to incur the expenses associated with the
enforcement of his or her rights under this Plan by litigation or other legal
action because the cost and expense thereof would substantially detract from
the benefits intended to be extended to the Participant hereunder.  Accordingly, if after a Change in Control it
should appear that the Company has failed to comply with any of its obligations
under this Plan, or in the event that the Company or any other person takes any
action to declare this Plan void or unenforceable, or institutes any litigation
designed to deny, or to recover from, the Participant the benefits intended to
be provided to such Participant hereunder, the Company irrevocably authorizes
such Participant to retain counsel of his or her choice, at the expense of the
Company as hereafter provided, to represent such Participant in connection with
the initiation or defense of any litigation or other legal action, whether by
or against the Company or any director, officer, stockholder or other person
affiliated with the Company in any jurisdiction.  The Company shall pay and be solely responsible
for any and all attorneys’ and related fees and expenses incurred by such
Participant as a result of the Company’s failure to perform under this Plan or
any provision thereof; or as a result of the Company or any person contesting
the validity or enforceability of this Plan or any provision thereof.

 

26

 

10.4        Captions.

 

The captions contained herein
are for convenience only and shall not control or affect the meaning or
construction hereof.

 

10.5        Governing Law.

 

The provisions of the Plan shall
be construed and interpreted according to the laws of the Commonwealth of
Pennsylvania.

 

10.6        Successors.

 

The provisions of the Plan shall
bind and inure to the benefit of the Company, its affiliates, and their
respective successors and assigns.  The
term successors as used herein shall include any corporate or other business
entity which shall, whether by merger, consolidation, purchase or otherwise,
acquire all or substantially all of the business and assets of the Company or a
participating affiliate and successors of any such corporation or other
business entity.

 

10.7        Right to Continued
Service.

 

Nothing contained herein shall
be construed to confer upon any Participant the right to continue to serve as a
member of the Board or in any other capacity.

 

27

 

EXHIBIT A

 

The following are the Investment Options that are used
in determining the Investment Return Rate under the Plan as of September 2,
2003.

 

	
  Account Name

  
	
  Equitable Resources Common Stock Fund

  
	
  Putnam International Growth Fund

  
	
  Putnam Voyager Fund

  
	
  The Putnam Fund for Growth and Income

  
	
  The George Putnam Fund of Boston

  
	
  Putnam OTC & Emerging Growth Fund

  
	
  PIMCO Total Return Fund

  
	
  Putnam Asset Allocation: Growth

  
	
  Putnam Asset Allocation: Balanced

  
	
  Putnam Asset Allocation: Conservative

  
	
  Putnam Money Market

  
	
  Alger Mid Cap Growth Institutional Fund

  
	
  Lord Abbett Mid Cap Value Fund

  
	
  Victory Diversified Stock Fund

  
	
  Putnam International Capital Opportunities Fund

  
	
  MSIF Small Company Growth Fund

  
	
  Putnam Growth Opportunities Fund

  
	
  Putnam Global Equity Fund

  
	
  PIMCO High Yield Fund

  
	
  Oppenheimer Developing Markets Fund

  
	
  Neuberger Berman Genesis Trust Fund

  

 

 

EXHIBIT B

 

Phantom
Stock Awards

 

(May 26,
1999)

 

	
  Director

  	
   

  	
  Phantom Stock Shares

  	
   

  
	
  E. Lawrence
  Keyes, Jr.

  	
   

  	
  6,108.73

  	
   

  
	
  Thomas A. McConomy

  	
   

  	
  4,937.89

  	
   

  
	
  Malcolm M. Prine

  	
   

  	
  6,108.73

  	
   

  
	
  Paul Christiano, Ph.D.

  	
   

  	
  1,883.53

  	
   

  
	
  Donald I. Moritz

  	
   

  	
  6,108.73

  	
   

  
	
  J. Michael Talbert

  	
   

  	
  2,494.40

  	
   

  
	
  James E. Rohr

  	
   

  	
  1,883.53

  	
   

  
	
  Phyllis A. Domm, Ed.D

  	
   

  	
  1,883.53

  	
   

  
	
  David S. Shapira

  	
   

  	
  6,108.73

  	
   

  
	
  Guy W. Nichols

  	
   

  	
  1,221.75

  	
   

  

 

 

EXHIBIT C

 

EQUITABLE RESOURCES STOCK FUND

OPPENHEIMER DEVELOPING MARKETS FUND

PUTNAM VOYAGER FUND

ALGER MIDCAP GROWTH INSTITUTIONAL FUND

PUTNAM GROWTH OPPORTUNITIES FUND

MSIF IND. SMALL COMPANY GROWTH FUND

PUTNAM VISTA FUND

PUTNAM OTC & EMERGING GROWTH FUND

PUTNAM INTERNATIONAL EQUITY FUND

PUTNAM INTERNATIONAL CAPITAL OPPORTUNITIES FUND

VICTORY DIVERSIFIED STOCK FUND

PUTNAM ASSET ALLOCATION: GROWTH

PUTNAM ASSET ALLOCATION: BALANCED

PUTNAM ASSET ALLOCATION: CONSERVATIVE

PUTNAM GLOBAL EQUITY FUND

NEUBERGER & BERMAN GENESIS TRUST FUND

LORD ABBETT MID CAP VALUE FUND

PUTNAM GROWTH AND INCOME FUND

GEORGE PUTNAM FUND OF BOSTON

PIMCO TOTAL RETURN FUND

PIMCO HIGH YEILD FUND

PUTNAM INCOME FUND

PUTNAM MONEY MARKET FUND

 

30

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