Document:

Exhibit 10.11

 

Equitable
Resources, Inc.

 

2005
DIRECTORS’ DEFERRED COMPENSATION PLAN

 

(amended and
restated December 3, 2008)

 

ARTICLE I

 

1.1          Purpose
of Plan.

 

This
Equitable Resources, Inc. 2005 Directors’ Deferred Compensation Plan (the “2005 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 2005 Plan also shall administer the payment of stock units and
phantom stock awarded pursuant to the 1999 Equitable Resources, Inc.
Non-Employee Directors’ Stock Incentive Plan (the “NEDSIP”).

 

ARTICLE II

 

DEFINITIONS

 

When
used in this 2005 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 and Phantom Stock Account under the
2005 Plan.

 

2.2          “Beneficiary”
means the person or persons designated or deemed to be designated by
the Participant pursuant to Section 7.1 of the 2005 Plan to receive
benefits payable under the 2005 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 Company 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, the following shall not constitute a Change in Control:  (i) any acquisition by 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 and (ii) an
acquisition by any person or group of persons of not more than forty percent
(40%) of the outstanding shares of Company common stock or the combined voting
power of the then outstanding voting securities of the Company if such
acquisition resulted from the issuance of capital stock by the Company and the
issuance and the acquiring person or group was approved in advance of such
issuance by at least two-thirds of the Continuing Directors then in office;

 

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

 

(d)                                 There is consummated a merger,
consolidation, reorganization, share exchange, or similar transaction involving
the Company (including a triangular merger), in any case, unless immediately
following such transaction:  (i) all
or substantially all of the persons who were the beneficial owners of the
outstanding common stock and outstanding voting securities of the Company
immediately prior to the transaction beneficially own, directly or indirectly,
more than sixty percent (60%) of the outstanding shares of common stock and the
combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors of the corporation resulting from
such transaction (including a corporation or other person which as a result of
such transaction owns the Company or all or substantially all of the Company’s
assets through one or more subsidiaries (a “Parent Company”)) in substantially
the same proportion as their ownership of the common stock and other voting
securities of the Company immediately prior to the consummation of the
transaction, (ii) no person (other than (A) the Company, any employee
benefit plan sponsored or maintained by the Company or, if reference was made
to equity ownership of any Parent Company for purposes of determining whether
clause (i) above is satisfied in connection with the transaction, such
Parent Company, or (B) any person or group that satisfied the
requirements of subsection (b)(ii), above) beneficially owns, directly or indirectly, 20% or
more of the outstanding shares of common stock or the combined voting power of
the voting securities entitled to vote generally in the election of directors
of the corporation resulting from such transaction and (iii) individuals
who were members of the Board immediately prior to the consummation of the
transaction constitute at least a majority of the members of the board of
directors resulting from such transaction (or, if reference was made to equity
ownership of any Parent Company for purposes of determining whether clause (i) above
is satisfied in connection with the transaction, such Parent Company); or

 

(e)                                  The following
individuals (sometimes referred to herein as “Continuing Directors”) cease for
any reason to constitute a majority of the number of directors then
serving:  individuals who, on the date
hereof, constitute the entire Board and any new director (other than a director
whose initial assumption of office is in connection with an actual or
threatened election contest, including but 

 

2

 

not limited to a consent solicitation, relating to
the election of directors of the Company) whose appointment or election by the
Board or nomination for election by the Company’s shareholders was approved by
a vote of at least two-thirds (2/3) of the directors then still in office who
either were directors on the effective date of the Plan or whose appointment,
election or nomination for election was previously so approved.

 

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.

 

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 2005 Plan, plus or minus any investment gain or
loss allocable thereto under Section 5.4 of the 2005 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 2005 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 6.3
of the 2005 Plan.

 

2.11        “Investment
Options” means the investment options described in Exhibit A
to the 2005 Plan into which a Participant may direct all or part of his or her
Deferral Account.

 

2.12        “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 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 

 

3

 

accordance with the procedures applicable to
investments in the Equitable Resources Common Stock Fund under the Equitable
401(k) Plan.

 

2.13        “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 2005 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 2005 Plan shall have no greater rights to any amounts held
in any such Irrevocable Trust than any other unsecured general creditor of the
Company.

 

2.14        “Participant”
means any non-employee member of the Board (i) who receives an
award of Phantom Stock under the NEDSIP and/or (ii) who elects to
participate in the 2005 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 2005 Plan.

 

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

 

(i)                                    awarded
pursuant to the NEDSIP, and

 

(ii)                                 which will be
distributed to eligible 2005 Plan Participants in the medium elected by the
2005 Plan Participant and on the date or permissible payment event specified in
the Phantom Stock Agreement, which date or permissible payment event is deemed
to be incorporated by reference herein.

 

2.16        “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 2005 Plan.

 

2.17        “Phantom
Stock Agreement” means any agreements and/or terms of award of
Phantom Stock under the NEDSIP pursuant to which Phantom Stock is or may be
payable.

 

2.18        “2005
Plan” means this Equitable Resources, Inc. 2005 Directors’ Deferred
Compensation Plan, as amended from time to time.

 

2.19        “Plan
Year” means the twelve-month period commencing each January 1 and ending
on December 31.

 

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

 

4

 

ARTICLE III

 

ELIGIBILITY
AND PARTICIPATION

 

3.1          Eligibility
for Phantom Stock Account.

 

Eligibility
to participate in the 2005 Plan for purposes of the Phantom Stock Account under
Article IV of the 2005 Plan is limited to those non-employee members of
the Board who receive Phantom Stock pursuant to the terms of the NEDSIP.  An eligible Board member shall commence
participation in the 2005 Plan for purposes of the Phantom Stock Account on 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 2005 Plan for purposes of deferring Directors’ Fees under
Section 5.1 of the 2005 Plan is limited to non-employee members of the
Board.  An eligible Board member shall
commence participation in the 2005 Plan for purposes of deferring Directors’
Fees as of the first day of the Plan Year following the receipt of his or her
Enrollment Form by the Committee in the preceding calendar year or within
30 days of first becoming eligible to participate in the 2005 Plan, aggregated
within the meaning of Section 409A of the Code, if such date occurs after
the commencement of the Plan Year.

 

ARTICLE IV

 

PHANTOM
STOCK ACCOUNT

 

4.1          Phantom
Stock Award.

 

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 2005 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 2005 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 

 

5

 

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 which the NYSE
was open for business.  Notwithstanding
anything in this 2005 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 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 2005 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
2005 Plan shall be applied, mutatis
mutandis, as if the Participant’s Phantom Stock Account was
comprised of the 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 2005 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 2005 Plan.

 

4.4          Shareholder
Rights.

 

Except
as specifically provided herein, an award of Phantom Stock under the 2005 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.

 

6

 

ARTICLE V

 

DEFERRAL
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 2005 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 Plan Year following the
receipt by the Committee of the Participant’s Enrollment Form in the
preceding calendar year and shall remain in effect for the Plan Year.  A Participant may not withdraw or amend his
or her Enrollment Form during the Plan Year.

 

5.2          Investment
Direction.

 

A
Participant may direct that amounts deferred pursuant to his or her Enrollment Form be
deemed to be invested in one or more of the Investment Options listed in Exhibit A
to the 2005 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 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
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
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 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 shall only be deemed to be invested
in such Investment Options for purposes of crediting investment gain or loss
under Section 5.4 of the 2005 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 2005 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, 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 

 

7

 

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 2005 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 to an Investment Option named
in Exhibit A of a fixed income nature.

 

5.3          No
Right to Investment Options.

 

Notwithstanding
anything in the 2005 Plan to the contrary, the Investment Options offered under
the 2005 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 2005 Plan, the Committee shall provide written
notice to each Participant with respect to whom a Deferral Account is
maintained under the 2005 Plan and any Participant who has directed any part of
his or her Deferral Account to such Investment Option shall be permitted to
redirect such portion of his or her Deferral Account to another Investment
Option offered under the 2005 Plan.

 

5.4          Crediting
of Investment Return.

 

Each
Participant’s Deferral 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 since the
immediately preceding Valuation Date, but after such Deferral 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, the unpaid
balance thereof shall be credited with investment gain or loss at the
Investment Return Rate, as provided in this Section 5.4 of the 2005 Plan.

 

5.5          Valuation
of Deferral Account.

 

As
of each Valuation Date, a Participant’s Deferral Account shall equal (i) the
balance of the Participant’s Deferral 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 5.4 of
the 2005 Plan, and minus (iv) the aggregate amount of distributions, if
any, made from such Deferral Account since the immediately preceding Valuation
Date.  For purposes of valuing a
Participant’s Deferral Account upon the termination of the Participant’s
membership on the Board, the Valuation Date shall be the business day
coinciding with the date of the termination of the Participant’s Board
membership.

 

8

 

5.6          Statement
of Deferral 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 as of the most recent Valuation Date.

 

ARTICLE VI

 

PAYMENT OF
BENEFITS

 

6.1          Payment
of Phantom Stock Account.

 

On
the date, or other permissible payment event under Section 409A of the
Code, provided for payment pursuant to the terms of a Phantom Stock Agreement,
which date or other permissible payment event under Section 409A of the
Code is deemed to be incorporated by reference herein, 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 medium is elected by the Participant if so
provided in the award, based on awards credited to the Participant’s Phantom Stock
Account pursuant to Section 4.1 of the 2005 Plan, as determined in
accordance with Article IV of the 2005 Plan, less any income tax
withholding required under applicable law.

 

6.2          Payment
of Deferral Account.

 

Thirty
(30) days following a Participant’s termination of membership on the Board and
in accordance with the election provided in Section 6.4 of the 2005 Plan,
and without regard to whether the Participant is entitled to payment of his or
her Phantom Stock Account, the Company shall pay, or commence payment 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, as determined in accordance with Article V
of the 2005 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 6.4 of the 2005 Plan.  Notwithstanding the preceding sentence, to
the extent the Participant had directed that any portion of his Deferral
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.  For
purposes of this 2005 Plan, the term “termination of membership”, when used in
the context of a condition to, or timing of, payment hereunder shall be
interpreted to mean a “separation from service” as that term is used in Section 409A
of the Code.

 

6.3          Hardship
Withdrawal from Deferral 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 from time to time by the Committee, that the Participant has
suffered an unforeseeable 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 

 

9

 

balance
of such Participant’s Deferral Account as of the date of such payment (a “Hardship Withdrawal”).  Any such Hardship Withdrawal shall be subject
to any income tax withholding required under applicable law.  The Participant shall provide to the
Committee such evidence as the Committee may require to demonstrate that such
emergency exists and financial hardship would occur if the withdrawal were not
permitted.

 

For
purposes of this Section 6.3, an “unforeseeable emergency” shall mean a
severe financial hardship to the Participant resulting from an illness or
accident of the Participant, the Participant’s spouse, the Participant’s
Beneficiary, or the Participant’s dependent (as defined in Section 152 of
the Code, without regard to Section 152(b)(1), (b)(2), and (d)(1)(B)),
loss of the Participant’s property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant, or as otherwise defined in Section 409A
of the Code from time to time.  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) after taking into account
the extent that such emergency is or may be relieved through reimbursement or
compensation from insurance or otherwise, by liquidation of the Participant’s
assets, to the extent the liquidation of such assets would not cause severe
financial hardship, or by the cessation of future deferrals under the 2005
Plan.

 

The
form of payment of the Hardship Withdrawal shall be a lump sum cash
payment.  For purposes of reducing a
Participant’s Deferral Account and adjusting the balances in the various
Investment Options in which such reduced Deferral Account is deemed to be
invested to reflect such Hardship Withdrawal, amounts represented by such
Hardship Withdrawal shall be deemed to have been withdrawn first, on a pro rata
basis, from that portion of his Deferral 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 Hardship
Withdrawal cannot be fully satisfied by a deemed withdrawal of the Non Stock
Investments, from the portion deemed invested in the Company Stock Fund.

 

Notwithstanding
the preceding, to the extent the Participant had directed that any portion of
his Deferral Account be invested in the Company Stock Fund, the Company shall
distribute such portion in such number of shares of Equitable Resources Common
Stock based on the value at the date of distribution.

 

6.4          Form of
Payment.

 

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

 

(i)                                     Annual payments
of a fixed amount which shall amortize the value of the Deferral 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 Section 5.4 of the 2005 Plan); or

 

(ii)                                  A lump sum.

 

10

 

Such
an election must be made in writing in accordance with uniform procedures
established by the Committee at the time of filing the Enrollment Form with
respect to the Plan Year.  In the event a
Participant fails to make a distribution election within the time period
prescribed, his or her Deferral Account shall be distributed in the form of a
lump sum.  Payment of the Deferral
Account shall be made or commenced at the time specified in Section 6.2
upon the Participant’s separation from service.

 

(b)           Distribution
of Company Common Stock.  In the
event the Company is required to distribute some or all of a Participant’s
Deferral Account in shares of Equitable Resources Common Stock in accordance
with 2005 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 Deferral 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.

 

6.5          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) in the form provided in the Phantom Stock
Agreement and/or Participant’s election as to medium of payment ninety (90)
days following the Participant’s death in the medium elected by the Participant
pursuant to Section 6.4 of the 2005 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 Deferral Account in the form of a lump
sum.  In the event of the Participant’s
death after commencement of installment payments under the 2005 Plan, but prior
to receipt of his or her entire Deferral Account, 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 Deferral Account is paid.

 

6.6          Limited
Account Size; Lump Sum Payment.

 

In
the event that the value of a Participant’s Account is not greater than the
applicable dollar limit under Section 402(g)(1)(B) of the Code as of
the Valuation Date immediately preceding the commencement of payment to the
Participant under the 2005 Plan pursuant to this Section, the Committee may
inform the Company and the Company, in its sole discretion, may choose to pay
the benefit in the form of a lump sum, notwithstanding any provision of the
2005 Plan or an election of a Participant under Section 6.4 of the 2005
Plan to the contrary, provided that the payment results in a termination and
liquidation of the entirety of the Participant’s interest under the 2005 Plan,
including all agreements, methods, programs, or other arrangements with respect
to which deferrals of compensation are treated as having been deferred under a
single nonqualified deferred compensation plan under Treas.
Reg. §1.409A-1(c)(2) and the requirements of
Treas. Reg. §1.409A-3(j)(v), or any successor regulation, are also
satisfied with respect to such payment.

 

11

 

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 2005 Plan, any payments due under
the 2005 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.

 

ARTICLE
VIII

 

ADMINISTRATION

 

8.1          Committee.

 

The
Committee shall have sole discretion to:  (i) designate non-employee
directors eligible to participate in the 2005 Plan; (ii) interpret the
provisions of the 2005 Plan; (iii) supervise the administration and
operation of the 2005 Plan; and (iv) adopt rules and procedures
governing the 2005 Plan.

 

8.2          Investments.

 

The
Benefits Investment Committee of the Company shall have the sole discretion to
choose the Investment Options available under the 2005 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 2005 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 2005 Plan shall be final and binding
upon all persons having any interest in the 2005 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 

 

12

 

with
respect to the 2005 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 2005 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 2005 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 2005 Plan shall
be provided to each Participant under the 2005 Plan.

 

9.2          Termination.

 

The
Company, in its sole discretion, may terminate this 2005 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 2005 Plan as it existed on the day before the effective date
of the termination of the 2005 Plan without such Participant’s prior written
consent.  Any termination of the 2005
Plan shall not affect the time and form of payment of any Accounts.

 

ARTICLE X

 

MISCELLANEOUS

 

10.1        Funding.

 

The
Company’s obligation to pay benefits under the 2005 Plan shall be merely an
unfunded and unsecured promise of the Company to pay money in the future.  Except as otherwise provided in Section 5.2,
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 2005
Plan.  Regardless of whether the Company
elects to or otherwise contributes to an Irrevocable Trust, 2005 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 

 

13

 

Company
in satisfying all or any portion of its obligations under the 2005 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 2005 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, any adjustments required by Section 4.3 shall be made and
the Company shall provide to the trustee of the Irrevocable Trust all 2005 Plan
records and other information necessary for the trustee to make payments to
Participants under the 2005 Plan in accordance with the terms of the 2005 Plan.

 

10.2        Nonassignability.

 

No
right or interest of a Participant or Beneficiary under the 2005 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 2005
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 2005 Plan, or in the event that
the Company or any other person takes any action to declare this 2005 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 from the date of the
Change in Control through the Participant’s death as a result of the Company’s
failure to perform under this 2005 Plan or any provision thereof; or as a
result of the Company or any person contesting the validity or enforceability
of this 2005 Plan or any provision thereof. 
All expenses shall be reimbursed to the Participant providing the
relevant expense statements to the Company duly certified by him.  The expense reimbursements provided in this Section 10.3
shall be payable on a monthly basis following submission of expense statements
for the prior month.  Notwithstanding the
foregoing sentence, to the extent reimbursed, all reimbursement payments with
respect to expenses incurred within a particular year shall be made no later
than the end of the Participant’s taxable year following the taxable year in
which the expense was incurred.  The
amount of reimbursable expenses incurred in one taxable year of the Participant
shall not affect the amount of reimbursable expenses in a different taxable
year, and such reimbursement shall not be subject to liquidation or exchange
for another benefit.

 

14

 

10.4        No
Acceleration of Benefits.

 

Notwithstanding
anything to the contrary herein, there shall be no acceleration of the time or
schedule of any payments under the 2005 Plan, except as may be provided in
regulations under Section 409(A) of the Code.

 

10.5        Captions.

 

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

 

10.6        Governing
Law.

 

The
provisions of the 2005 Plan shall be construed and interpreted according to the
laws of the Commonwealth of Pennsylvania.

 

10.7        Successors.

 

The
provisions of the 2005 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.

 

10.8        No
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.

 

15

 

EXHIBIT A

 

The
following are the Investment Options that are used in determining the
Investment Return Rate under the Plan as of January 1, 2005.

 

	
  Account Name

  
	
  Equitable Resources Common
  Stock Fund

  
	
  Alger Mid Cap Growth
  Institutional Class

  
	
  American AAdvantage Small
  Cap Value Fund-Plan Ahead Class

  
	
  American Funds® Growth Fund of America®

  
	
  American Funds Washington
  Mutual

  
	
  Fidelity Balanced Fund

  
	
  Fidelity Contrafund®

  
	
  Fidelity Diversified
  International Fund

  
	
  Fidelity Freedom Income
  Fund®

  
	
  Fidelity Freedom 2005 FundSM

  
	
  Fidelity Freedom 2010 Fund®

  
	
  Fidelity Freedom 2015 FundSM

  
	
  Fidelity Freedom 2020 Fund®

  
	
  Fidelity Freedom 2025 FundSM

  
	
  Fidelity Freedom 2030 Fund®

  
	
  Fidelity Freedom 2035 FundSM

  
	
  Fidelity Freedom 2040 Fund®

  
	
  Fidelity Retirement Money
  Market Portfolio

  
	
  Fidelity Small Cap
  Independence Fund

  
	
  Lord Abbett Mid-Cap Value
  Fund-Class A

  
	
  Oppenheimer Developing
  Markets Fund

  
	
  PIMCO High Yield Fund -
  Administrative Class

  
	
  PIMCO Total Return
  Fund-Administrative Class

  
	
  Spartan® Total Stock Market

  
	
  Spartan® U.S. Equity Index Fund

  

 

16Exhibit 10.12

 

EMPLOYMENT
AGREEMENT

 

This is an
Employment Agreement (“Agreement”) entered into between EQUITABLE RESOURCES,
INC. (“Equitable” or the “Company”) and JOHANNA G. O’LOUGHLIN (“Ms. O’Loughlin”).

 

WHEREAS, Ms. O’Loughlin
has agreed to step down from the position of Senior Vice President and General
Counsel as of March 14, 2008 (at which time her status as an officer of
Equitable will cease) and from the position of Corporate Secretary as of March 31,
2008; and

 

WHEREAS, in order
to facilitate a smooth transition to her successor, Ms. O’Loughlin has
agreed to assume the position of Special Counsel to Equitable for the remainder
of calendar year 2008; and

 

WHEREAS, Ms. O’Loughlin
will retire from Equitable as of January 2, 2009.

 

NOW, THEREFORE, in
consideration of the respective representations, acknowledgements, covenants
and agreements of the parties set forth herein, and intending to be legally
bound, the parties agree as follows:

 

1.             The term of this
Agreement is from March 15, 2008 through January 1, 2009.  During that period, Ms. O’Loughlin will
hold the position of Special Counsel and, through March 31, 2008,
Corporate Secretary for Equitable. 
Effective January 2, 2009, Ms. O’Loughlin will retire from
Equitable, at which time her employment with Equitable will terminate.

 

2.             Beginning April 21,
2008, Ms. O’Loughlin will also become Of Counsel to Reed Smith LLP and
will work out of Reed Smith’s Pittsburgh office.  At Reed Smith, Ms. O’Loughlin will be
provided by Reed Smith with an office, shared administrative support,
malpractice insurance, and computer/email access.  While at Reed Smith during the period from April 21,
2008 through December 31, 2008, Ms. O’Loughlin is expected to provide
approximately 800 hours of her time to Equitable, not to exceed 100 hours in
any individual month (or 40 hours in any individual week), subject to scheduled
vacation or other leave, including medical leave in connection with surgery
scheduled March 17.  During that
period, Ms. O’Loughlin agrees to cooperate in good faith with the
transition to her successor (Lewis B. Gardner, Esq.), to report directly
to Mr. Gardner during this period to fulfill her hourly service
obligation, and to comply with Mr. Gardner’s reasonable requests and
direction, making herself available on reasonable notice from him.  It is Equitable’s present intention to
request the full number of hours described herein, but if the full number of
hours is not requested during the period of the Agreement, the Agreement shall
nevertheless remain in full force and effect.

 

3.             In light of her dual
roles at Equitable and Reed Smith and because she will have an office,
administrative support and computer/email access at Reed Smith, Ms. O’Loughlin
will not have an office nor will she have unrestricted access to Equitable’s
facilities or Equitable’s email or other computer systems as of the close of
business on March 14, 2008.  Ms. O’Loughlin
also confirms that as of March 14, 2008, she has returned to the Company
all credit cards, keys, computers, computer software, disks, cellular phone
equipment, PDAs, files, manuals, books, 

 

 

records,
correspondence, notes, photos or photo reproductions, tape recordings and any
other property of Equitable, whether in electronic format or “hard” copy.

 

4.             For the remainder of
calendar year 2008, Equitable shall continue to pay Ms. O’Loughlin’s base
salary at her current annual salary rate of $270,000, to be paid in bi-weekly
payments.  During that same period,
Equitable shall also continue Ms. O’Loughlin as a participant in Equitable’s
health and welfare benefits programs based upon her current elections and at
the current employee co-payments.

 

5.             It is understood and
agreed that Ms. O’Loughlin is not eligible to receive a bonus payment
under the 2008 Short-Term Incentive Plan (“2008 STIP”) and/or the 2008
Executive Short-Term Incentive Plan (“2008 ESTIP”).

 

6.             Assuming Ms. O’Loughlin
remains employed by Equitable through December 31, 2008 under the terms of
this Agreement, Ms. O’Loughlin shall remain a participant in, and she or
her estate (in the event of her death or her becoming Disabled as defined in
the 2005 EPIP prior to January 1, 2009) will receive 100% of the 2005 EPIP
(“Executive Performance Incentive Program”) payment, contingent upon
achievement of the performance criteria set forth therein and paid at the same
time as paid to all other participants. 
Her financial rewards under the EPIP remain subject to the terms and
conditions of the EPIP, as it may be amended from time to time.  The Compensation Committee of the Board of
Directors has reviewed and approved this Agreement, including Ms. O’Loughlin’s
continuing participation in the EPIP. 
Copies of the unanimous written consents executed by the members of the
Compensation Committee are attached as Exhibit A.

 

7.             It is agreed that Ms. O’Loughlin
may attend one or more professional conferences during the term of this
Agreement and Equitable shall reimburse Ms. O’Loughlin for the cost of
travel, lodging and meals in connection with conference(s), up to a total amount
not to exceed Ten Thousand Dollars ($10,000).

 

8.             Equitable shall
reimburse Ms. O’Loughlin for her parking expenses at her new work location
during the period from April 21, 2008 through December 31, 2008.

 

9.             Equitable will copy Ms. O’Loughlin’s
contact list from her Equitable computer and provide the copy to Ms. O’Loughlin
on a computer disk.  Ms. O’Loughlin,
by March 14, 2008, will designate for Equitable’s review other materials
(of a purely personal nature) of which she would like to have a copy.

 

10.           Ms. O’Loughlin
agrees not to act as an employment reference for any active employee of
Equitable during the term of this Agreement.

 

11.           Ms. O’Loughlin
agrees not to reapply or to seek to become reemployed by Equitable or any of
Equitable’s subsidiaries or affiliates at any time in the future.

 

12.           It is understood and
agreed that an internal announcement regarding the above described changes in
Equitable’s Law Department will be made on a mutually agreeable date, 

 

2

 

and the content of
that announcement will be substantially similar to the language appearing on Exhibit B
hereto.

 

13.           Ms. O’Loughlin’s
employment cannot be terminated prior to January 2, 2009 for any reason
other than Cause (as defined below).

 

(a)                                  Solely
for purposes of this Agreement, “Cause” shall mean:  

(i) commission of an act of moral turpitude or fraud; (ii) willful
engagement in conduct which is demonstrably injurious to the Company and/or its
reputation; or (iii) the willful refusal to fulfill her responsibilities
described in paragraph 2 above or any other willful violation(s) of
her contractual obligations to the Company, including her contractual
obligations set forth elsewhere in this Agreement.

 

(b)                                 The
definition of “other cause” under the 2005 EPIP shall be construed the same as
the definition of “Cause” herein with respect to any termination of Ms. O’Loughlin’s
employment prior to January 2, 2009.

 

14.           Ms. O’Loughlin
agrees not to make any negative or disparaging comments to the media, to any
employees or former employees of Equitable, or to any other members of the
public regarding Equitable or regarding any of Equitable’s directors or
officers.

 

15.           Ms. O’Loughlin acknowledges and agrees that her employment with
Equitable necessarily involved her knowledge of and access to confidential and
proprietary information pertaining to the business of the Company and its
subsidiaries and affiliates. 
Accordingly, she agrees that during the term of this Agreement and after
the effective date of her termination from employment, she will not, directly
or indirectly, without the express written permission of the Company (unless
directed by applicable legal authority having jurisdiction over her) disclose
or use, or knowingly permit to be disclosed or used, for the benefit of
herself, any person, corporation or other entity other than the Company and its
subsidiaries (a) any information concerning any financial matters,
customer relationships, competitive status, supplier matters, internal
organizational matters, current or future plans, or other business affairs of
or relating to the Company and its subsidiaries; (b) any management,
operational, trade, technical or other secrets or any other proprietary
information or other data of the Company or its subsidiaries; or (c) any
other information related to the Company or its subsidiaries which has not been
published and is not generally known outside of the Company.  Ms. O’Loughlin acknowledges that all of
the foregoing constitutes confidential and proprietary information, which is
the exclusive property of the Company.

 

16.           In consideration for
certain additional payments and benefits described below and as requested by Ms. O’Loughlin,
Ms. O’Loughlin agrees that the covenants as to non-competition and
non-solicitation contained in Section 2 of the NonCompete Agreement
between Equitable and Ms. O’Loughlin dated December 1, 1999 shall
remain in effect during the remainder of Ms. O’Loughlin’s employment with
Equitable and for a period of three (3) years after the termination of her
employment.  It is understood and agreed
that the covenant as to 

 

3

 

non-competition
applies only to Ms. O’Loughlin’s activities other than as an
attorney-at-law.  The additional payments
and benefits are as follows:

 

(a)           Continued
medical and prescription drug coverage based upon Ms. O’Loughlin’s current
elections and active employee co-payments until Ms. O’Loughlin reaches the
age of 65.  (It is understood and agreed
that beginning in 2009, the Company’s annual health savings contribution will
cease);

 

(b)           The
supplemental medical savings account equal to $1,000 per year for a period of
five years following Ms. O’Loughlin’s termination from employment;

 

(c)           Financial
planning services from the team of Metz Lewis and Hawthorn (or equivalent tax
preparer) to be paid directly by the Company for a period of five years
following Ms. O’Loughlin’s termination from employment;

 

(d)           Reimbursement
for home internet and Blackberry (or equivalent PDA device) service for a
period of five years following termination from employment;

 

(e)           Continued
access to the EQT Help Desk for a period of five years following termination
from employment;

 

(f)            Reimbursement
for Duquesne Club dues for a period of five years following termination from
employment; and

 

(g)           Reimbursement
for Pittsburgh Golf Club dues for a period of five years following termination
from employment.

 

All other benefits not explicitly listed herein shall cease as of January 2,
2009.

 

The perquisites and expense reimbursements provided herein shall be
payable on the date(s) provided in Equitable’s standard payroll and
reimbursement procedures with respect to such perquisites and expense
reimbursements.  Notwithstanding the foregoing
sentence, to the extent reimbursed, all reimbursement payments with respect to
expenses incurred within a particular year shall be made no later than the end
of Ms. O’Loughlin’s taxable year following the taxable year in which the
expense was incurred; provided, further that, if Ms. O’Loughlin is a “Specified
Employee” of Equitable under Section 409A of the Internal Revenue Code at
the time of her separation from service, no such payments or reimbursements may
be made to her or on Ms. O’Loughlin’s behalf until the first day following
the six month anniversary of her separation from service.  The amount of reimbursable expenses incurred
in one taxable year of Ms. O’Loughlin shall not affect the amount of
reimbursable expenses in a different taxable year, and such reimbursement shall
not be subject to liquidation or exchange for another benefit.

 

4

 

To the extent any such benefits provided in section (a) of
this paragraph cannot be provided on a non-taxable basis to Ms. O’Loughlin
and the provision thereof would cause any part of the monthly benefits to be
subject to additional taxes and interest under section 409A of the Code,
then the provision of such benefits shall be deferred to the first day
following the six-month anniversary of her separation from service.

 

17.           It is understood and
agreed that because Ms. O’Loughlin will be transferring to a work location
other than 225 North Shore Drive for the remainder of 2008, she will not be
obliged to pay the membership fee specified in the Fitness Center Agreement for
the entire year of 2008 but only for the pro rata portion of 2008 while she was
working at 225 North Shore Drive.

 

18.           In consideration for
Equitable’s commitments herein, Johanna G. O’Loughlin, on behalf of herself,
her heirs, representatives, estates, successors and assigns, does hereby
irrevocably and unconditionally release and forever discharge Equitable
Resources, Inc., its predecessors, subsidiaries, affiliates, and benefit
plans, and their past, present and future officers, directors, trustees,
administrators, agents and employees, as well as the heirs, successors and
assigns of any of such persons or such entities (hereinafter severally and
collectively called “Releasees”) from any and all manner of suits, actions,
causes of action, damages and claims, known and unknown, that Ms. O’Loughlin
has or may have against any of the Releasees for any acts, practices or events
up to and including the date she signs this Agreement and the continuing effects
thereof, except for the performance of the provisions of this Agreement, it
being the intention of Ms. O’Loughlin to effect a general release of all
such claims.  This release includes any
and all claims under any possible legal, equitable, contract, tort, or
statutory theory, including but not limited to any claims under Title VII of
the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment
Act, the Older Workers Benefit Protection Act, the Americans With Disabilities
Act, the Civil Rights Act of 1991, the Pennsylvania Human Relations Act, the
City of Pittsburgh Human Relations Ordinance, and other federal, state, and
local statutes, ordinances, executive orders, regulations and other laws
prohibiting discrimination in employment, the federal Employee Retirement
Income Security Act of 1974, and state, federal or local law claims of any
other kind whatsoever (including common law tort and contract claims) arising
out of or in any way related to Ms. O’Loughlin’s employment with Equitable
or her separation from employment with Equitable.  Ms. O’Loughlin also specifically
releases all Releasees from any and all claims or causes of action for the
fees, costs and expenses of any and all attorneys who have at any time or are
now representing her in connection with this Agreement or in connection with
any matter released in this Agreement.

 

19.           Equitable shall provide
Ms. O’Loughlin with outplacement services from the firm of Challenger,
Gray & Christmas for the twelve month period following the termination
of her employment with Equitable if she executes and delivers to Equitable on January 2,
2009 a Supplemental Release in the form attached hereto as Exhibit C.  Equitable shall pay or reimburse Ms. O’Loughlin
for reasonable costs incurred for such outplacement services, provided such
expenses must be incurred before the end of her second taxable year following
the taxable year in which her separation from service occurs and must be
reimbursed before the end of her third taxable year following the taxable year
in which her separation from service occurs.

 

5

 

20.           The parties understand
that this Agreement does not prohibit Ms. O’Loughlin from filing an
administrative charge of alleged employment discrimination under Title VII of
the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the
Americans With Disabilities Act or the Equal Pay Act.  Ms. O’Loughlin, however, waives her
right to monetary or other recovery should any federal, state or local
administrative agency pursue any claims on her behalf arising out of or
relating to her employment with and/or separation from employment with
Equitable.  This means that by signing
this Agreement, Ms. O’Loughlin will have waived any right she had to
obtain a recovery if an administrative agency pursues a claim against Equitable
or any of the Releasees based on any actions taken by any of the releasees up
to the dates of the signing of this Agreement and the Supplemental Release, and
that Ms. O’Loughlin will have released the Releasees of any and all claims
of any nature arising up to the dates of the signing of this Agreement and the
Supplemental Release.

 

21.           Ms. O’Loughlin
expressly warrants that she was advised to consult with an attorney prior to
executing this Agreement.  She
acknowledges that she has been afforded the opportunity to consider this
Agreement for a period of at least twenty one calendar days, which is a
reasonable period of time, that she has carefully read this Agreement, that she
understands completely its contents and that she has executed the same of her
own free will, act and deed.  If Ms. O’Loughlin
signs this Agreement in less than twenty one calendar days, she acknowledges
that she has thereby waived her right to the full twenty one day period.

 

22.           Ms. O’Loughlin
will have a period of seven calendar days following her execution of this
Agreement to revoke it, and this Agreement will not be effective or enforceable
prior to the expiration of that seven-day revocation period.  If Ms. O’Loughlin does not advise
Charlene Petrelli, Vice President and Chief Human Resources Officer, 225 North
Shore Drive, Pittsburgh, PA 15212 in writing that she revokes this Agreement
within seven calendar days of her execution of it, she understand that this
Agreement will be effective and enforceable.

 

23.           The provisions of this
Agreement are severable.  To the extent
that any provision of this Agreement is deemed unenforceable in any court of
law, the parties intend that such provision be construed by such court in a
manner to make it enforceable.

 

24.           This Agreement shall be
binding upon and inure to the benefit of the successors and assigns of the
Company.

 

25.           This Agreement shall be
governed by and construed in accordance with the laws of the Commonwealth of
Pennsylvania without regard to conflict of law principles.

 

26.           This Agreement contains
the entire agreement between the parties and it supersedes all prior agreements
and understandings between Equitable and Ms. O’Loughlin with respect to
the subject matters hereof (oral or written), including but not limited to the
Change of Control Agreement dated September 1, 2002 and the Non Compete
Agreement dated December 1, 1999, except that it is understood and agreed
that the covenants as to non-competition and non-solicitation contained in Section 2
of the Non Compete Agreement remain in effect as modified herein, along with
the “Certain Remedies” provisions in Section 5 of that Non Compete
Agreement.  Accordingly, upon execution
of this Agreement, Ms. O’Loughlin understands and 

 

6

 

agrees that she
will have no continuing rights under the Change of Control Agreement or the Non
Compete Agreement except as expressly stated herein, and that otherwise those
agreements shall have no further force or effect.

 

27.           This Agreement may not
be changed, amended, or modified except by a written instrument signed by both
parties.

 

IN WITNESS
WHEREOF, the parties have executed this Agreement on the dates set forth below.

 

 

	
  EQUITABLE
  RESOURCES, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Charlene Petrelli

  	
   

  	
  /s/

  	
   Johanna G.
  O’Loughlin

  
	
   

  	
       Charlene Petrelli

  	
   

  	
   

  	
   Johanna G. O’Loughlin

  
	
   

  	
   

  	
   

  
	
  Vice President &
  Chief Human Resources Officer

  	
   

  	
  March 14, 2008

  
	
  Title

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
  March 14, 2008

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  

 

7

 

EQUITABLE RESOURCES, INC.

 

UNANIMOUS WRITTEN CONSENT

OF THE COMPENSATION COMMITTEE

OF THE BOARD OF DIRECTORS

 

March 14, 2008

 

The undersigned, being all the members of the Compensation Committee of
the Board of Directors of EQUITABLE RESOURCES, INC., a Pennsylvania corporation
(the “Company”), do hereby consent in writing, pursuant to Section 1727(b) of
the Pennsylvania Business Corporation Law, to the adoption of the following
resolutions and direct that they shall, in all respects, be deemed valid corporate
action as though such resolutions had been adopted at a formal meeting of the Compensation
Committee held this day:

 

Re:          Employment Agreement.

 

RESOLVED, that the form, terms and provisions
of the Employment Agreement between the Company and Johanna G. O’Loughlin, the
forms of which have been presented to and reviewed by the Compensation
Committee, be, and they hereby are, in all respects approved, and that the Chairman
and Chief Executive Officer, the President and Chief Operating Officer or the
Vice President and Chief Human Resources Officer of the Company be, and they
each hereby are, authorized and directed to execute and deliver such agreements
in the name and on behalf of the Company in the forms hereby approved, subject
to any such changes therein or additions thereto as in such officer’s judgment
shall be necessary, proper or desirable.

 

Re:          Approval of Compensation of Executive Officer.

 

RESOLVED, that the compensation of Lewis B.
Gardner effective upon his appointment as Vice President and General Counsel,
be and hereby is approved as presented to this Compensation Committee.

 

Re:          General.

 

RESOLVED, that in order to
fully carry out the intent and effectuate the purposes of the foregoing
resolutions, each of the Chairman and Chief Executive Officer, the President
and Chief Operating Officer and the Vice President and Chief Human Resources
Officer of the Company be, and hereby is, authorized and directed to take all
such further action, to execute and deliver the agreements, instruments and
documents authorized and directed in the foregoing resolutions and all such
further agreements, instruments and documents relating thereto, in the name and
on behalf of the Company and under its corporate seal or otherwise, and to pay
all such fees and expenses, which in such officer’s judgment shall be
necessary, proper or desirable.

 

EXHIBIT A

 

 

IN WITNESS WHEREOF, the
undersigned have caused this Consent to be duly executed as of this 14th day of March 2008.

 

 

	
  /s/ Phyllis A. Domm

  	
   

  
	
  PHYLLIS A. DOMM

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ James E. Rohr

  	
   

  
	
  JAMES E. ROHR

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/
  Lee T. Todd, Jr.

  	
   

  
	
  LEE
  T. TODD, JR

  	
   

  

 

 

Members
of the Compensation Committee

 

 

The foregoing Unanimous
Consent of the members of the Compensation Committee of the Board of Directors
was executed pursuant to Section 1727(b) of the Pennsylvania Business
Corporation Law and filed with the minutes of this Company.

 

	
   

  	
  /s/
  Jean F. Marks

  
	
   

  	
  Assistant
  Corporate Secretary

  

 

 

ORGANIZATIONAL
ANNOUNCEMENT

 

The following communication is being sent on behalf of
Murry Gerber – Chairman & Executive Officer:

 

Johanna G. O’Loughlin – Senior Vice President, General
Counsel & Corporate Secretary – has announced her intention to retire from
Equitable Resources, effective January 2, 2009.  On behalf of the Board of Directors and
management team of the company, I want to express our gratitude for Johanna’s
12 years of service.

 

Lewis B. Gardner is promoted to the position of Vice
President & General Counsel, effective March 17, 2008, reporting
to me.  Lew joined Equitable in March 2003
as Director, Employee & Labor Relations.  He earned a Bachelor of Arts degree in
history at Duke University and a Juris Doctor degree in law at Wake Forest University.

 

To effect a smooth transition in the Law Department,
Johanna will assume the role of Special Counsel to Equitable for the remainder
of 2008.  She will also become Of Counsel
to the law firm of Reed Smith LLP, and will have her office and administrative
support located in Reed Smith’s Pittsburgh Office.

 

Please join me in wishing Johanna well in her new role
and congratulating Lew on his promotion.

 

EXHIBIT B

 

 

SUPPLEMENTAL
RELEASE

 

I, Johanna G. O’Loughlin, on behalf of myself, my
heirs, representatives, estates, successors and assigns, do hereby irrevocably
and unconditionally release and forever discharge Equitable Resources, Inc.,
its predecessors, subsidiaries, affiliates, and benefits plans, and their past,
present and future officers, directors, trustees, administrators, agents and
employees, as well as the heirs, successors and assigns of any of such persons
or such entities (hereinafter severally and collectively called “Releasees”)
from any and all claims, known and unknown, that I have or may have against any
of the Releasees for any acts, practices or events occurring during the period
from the date I signed the 2008 Employment Agreement (copy attached) up to and
including the date I sign this Supplemental Release.  This Supplemental Release includes any and
all claims under any possible legal, equitable, contract, tort, or statutory
theory, including but not limited to any claims under Title VII of the Civil
Rights Act of 1964, as amended, the Age Discrimination in Employment Act, the Older
Workers Benefit Protection Act, the Civil Rights Act of 1991, the Americans
With Disabilities Act, the Pennsylvania Human Relations Act, the City of
Pittsburgh Human Relations Ordinance, and other federal, state and local
statutes, ordinances, executive orders, regulations and other laws prohibiting
discrimination in employment, the federal Employee Retirement Income Security
Act of 1974, and state, federal or local law claims of any other kind
whatsoever, including claims for the fees, costs and expenses of any and all
attorneys who have at any time or are now representing me in connection with
this Supplemental Release or in connection with any matter released in this
Supplemental Release.  It is understood,
however, that this release does not include claims regarding performance of the
aforementioned Employment Agreement.

 

 

	
   

  	
  /s/ 

  	
   Johanna G.
  O’Loughlin

  
	
   

  	
   

  	
   Johanna G. O’Loughlin

  
	
   

  	
   

  
	
   

  	
  March 14, 2008

  
	
   

  	
  Date

  

 

EXHIBIT C

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