Document:

Exhibit 10.68

 

SECOND AMENDMENT TO CONFIDENTIALITY, NON-SOLICITATION
 AND NON-COMPETITION AGREEMENT

 

THIS SECOND AMENDMENT TO CONFIDENTIALITY, NON-SOLICITATION AND NON-COMPETITION AGREEMENT (“Non-Compete Amendment”) is made effective as of January 1, 2015 (the “Effective Date”), by and between EQT Corporation (together with its subsidiary companies, the “Company”) and Phillip D. Swisher (“Employee”) and amends the Confidentiality, Non-Solicitation and Non-Competition Agreement, dated as of September 8, 2008, by and between the Company and Employee which was amended by the Amendment to Confidentiality, Non-Solicitation and Non-Competition Agreement dated January 1, 2014.

 

W I T N E S S E T H:

 

WHEREAS, the Company and Employee entered into the Confidentiality, Non-Solicitation and Non-Competition Agreement on or about September 8, 2008 and the Company and Employee agreed to amend the Confidentiality, Non-Solicitation and Non-Competition Agreement, by entering into the Amendment to Confidentiality, Non-Solicitation and Non-Competition Agreement dated January 1, 2014 (collectively, the “Agreement”);

 

WHEREAS, the Agreement authorized the parties to amend the Agreement by a written instrument signed by both parties;

 

WHEREAS, the Company and Employee express their intent to modify the Agreement in accordance with the terms of this Non-Compete Amendment and to incorporate this Non-Compete Amendment into the Agreement;

 

WHEREAS, Employee understands that his/her receipt of performance awards in respect of 2015 under the EQT Corporation 2014 Long Term Incentive Plan (the “2014 LTIP”), including without limitation the 2015 Executive Performance Incentive Program (“2015 EPIP”) will not be effective unless he/she accepts the terms and conditions of this Non-Compete Amendment no later than 45 days after the Effective Date;

 

NOW, THEREFORE, the Company and Employee, intending to be legally bound, hereby agree as follows:

 

1.                                      On the Effective Date, the Company granted performance awards to Employee under, and subject to the terms and conditions of, the 2014 LTIP, the 2015 EPIP and certain other documents.  Such grant is effective only if Employee accepts the terms and conditions of this Non-Compete Amendment no later than 45 days after the Effective Date.

 

2.                                      The parties agree to amend the Agreement by deleting Section 3 of the Agreement and substituting the following:

 

3.                                      Severance Benefit.  If the Employee’s employment is terminated by the Company for any reason other than Cause (as defined below) or if the

 

 

Employee terminates his/her employment for Good Reason (as defined below), the Company shall provide Employee with the following:

 

(a) Continuation of Employee’s base salary in effect at the time of such termination, or immediately prior to the event that serves as the basis for termination for Good Reason, for a period of twelve (12) months from the date thereof.  Such salary continuation payments will be in accordance with the Company’s payroll practices;

 

(b) A lump sum payment payable within 60 days following Employee’s termination date equal to the product of (i) twelve (12) and (ii) 100% of the then-current Consolidated Omnibus Budget Reconciliation Act of 1985 monthly rate for family coverage; and

 

(c) A lump sum payment payable within 60 days following Employee’s termination date equal to $15,000.00.

 

The payments provided under this Section 3 shall be subject to applicable tax and payroll withholdings, and shall be in addition to any payments and/or benefits to which the Employee would otherwise be entitled under the EQT Corporation Severance Pay Plan (as amended from time to time).  The Company’s obligation to provide the lump sum payments and salary continuation payments shall be contingent upon the following:

 

(a)                                 Employee’s execution of a release of claims in a form acceptable to the Company; and

 

(b)                                 Employee’s compliance with his/her obligations hereunder, including, but not limited to, Employee’s obligations set forth in Sections 1 and 2.

 

Solely for purposes of this Agreement, “Cause” as a reason for the Employee’s termination of employment shall mean: (i) the conviction of a felony, a crime of moral turpitude or fraud or having committed fraud, misappropriation or embezzlement in connection with the performance of his/her duties hereunder; (ii) willful and repeated failures to substantially perform his/her assigned duties; or (iii) a violation of any provision of this Agreement or express significant policies of the Company.

 

Solely for purposes of this Agreement, termination for “Good Reason” shall mean the Employee’s resignation within 90 days after: (i) being demoted; or (ii) being given notice of a reduction in his/her annual base salary (other than a reduction of not more than 10% applicable to all senior officers of the Company).

 

3.                                      The parties agree to insert a new Section 13 to read as follows:

 

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13.                               Internal Revenue Code Section 409A.

 

(a)                                 General.  This Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and applicable Internal Revenue Service guidance and Treasury Regulations issued thereunder. Nevertheless, the tax treatment of the benefits provided under the Agreement is not warranted or guaranteed.  Neither the Company nor its directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by Employee as a result of the application of Section 409A of the Code.

 

(b)                                 Separation from Service.  For purposes of the Agreement, the term “termination,” when used in the context of a condition to, or the timing of, a payment hereunder, shall be interpreted to mean a “separation from service” as such term is used in Section 409A of the Code.

 

(c)                                  Six-Month Delay in Certain Circumstances.  Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code (“Non-Exempt Deferred Compensation”) would otherwise be payable or distributable under this Agreement by reason of Employee’s separation from service during a period in which Employee is a Specified Employee (as defined below), then, subject to any permissible acceleration of payment by the Company under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes):

 

(i) the amount of such Non-Exempt Deferred Compensation that would otherwise be payable during the six-month period immediately following Employee’s separation from service will be accumulated through and paid or provided on the first day of the seventh month following Employee’s separation from service (or, if Employee dies during such period, within thirty (30) days after Employee’s death) (in either case, the “Required Delay Period”); and

 

(ii) the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period.

 

For purposes of this Agreement, the term “Specified Employee” has the meaning given such term in Code Section 409A and the final regulations thereunder.

 

(d)                                 Timing of Release of Claims.  Whenever in this Agreement a payment or benefit is conditioned on Employee’s execution of a release of claims, such release must be executed and all revocation periods shall have expired within sixty (60) days after the date of termination; failing which such payment or benefit shall be forfeited.  If such payment or benefit constitutes Non-Exempt Deferred Compensation, and if such 60-day period begins in one calendar year and ends in the next calendar year, the payment or benefit shall not be made or commence before the second such calendar year, even if the release becomes

 

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irrevocable in the first such calendar year.  In other words, Employee is not permitted to influence the calendar year of payment based on the timing of his/her signing of the release.

 

4.                                      Section 13, which existed in the Agreement prior to the Non-Compete Amendment, remains in full force and effect and becomes Section 14 in the amended Agreement.

 

5.                                      This Non-Compete Amendment is hereby incorporated into the Agreement.  Except as expressly amended by this Non-Compete Amendment, all provisions of the Agreement shall remain in full force and effect.

 

6.                                      This Non-Compete Amendment shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania.

 

7.                                      The parties acknowledge that this Non-Compete Amendment is a written instrument and that by their signatures below they are agreeing to the terms and conditions contained in this Non-Compete Amendment.

 

IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Non-Compete Amendment as of the date first above written.

 

	
EQT Corporation
    	
 
    	
Employee:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Charlene Petrelli
    	
 
    	
/s/ Phillip D Swisher
    
	
 
    	
 
    	
 
    	
Phillip D Swisher
    
	
Name:
    	
Charlene Petrelli
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Vice President & Chief Human Resources   Officer
    	
 
    	
 
    

 

4Exhibit 10.69

 

AGREEMENT OF ASSIGNMENT OF
 CONFIDENTIALITY, NON-SOLICITATION AND
 NON-COMPETITION AGREEMENT

 

THIS ASSIGNMENT AGREEMENT (this “Agreement”), by and among EQT Corporation, a Pennsylvania Corporation (“EQT”), Equitrans Midstream Corporation, a Pennsylvania Corporation (“Equitrans Midstream”), and [·] (“Employee”), is executed as of [·], 2018.

 

W I T N E S E T H:

 

WHEREAS, Employee and EQT are party to a Confidentiality, Non-Solicitation and Non-Competition Agreement, dated as of [·] (the “Covenant Agreement”);

 

WHEREAS, Equitrans Midstream will be separated into a new publicly traded company pursuant to the Separation and Distribution Agreement by and among EQT, Equitrans Midstream and EQT Production Company (the “Separation Agreement”) and certain other ancillary agreements;

 

WHEREAS, immediately prior to (and following) the separation of Equitrans Midstream into a new publicly traded company pursuant to the Separation Agreement (the “Separation”), Employee will be an employee of Equitrans Midstream or its subsidiaries;

 

WHEREAS, EQT, Equitrans Midstream and Employee have determined that, as a result of and in connection with the Separation and Employee’s employment by Equitrans Midstream and its subsidiaries on and immediately following the Separation, it is appropriate and in the best interests of EQT, Equitrans Midstream and Employee that the Covenant Agreement be assigned by EQT to Equitrans Midstream and that certain related or clarifying amendments be adopted; and

 

WHEREAS, Employee acknowledges and agrees that Employee is executing this Agreement freely and of Employee’s own volition following an opportunity to consult with legal counsel of Employee’s choice.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein, and intending to be legally bound, EQT, Equitrans Midstream and Employee hereby agree as follows:

 

1.                                      Effectiveness.  This Agreement shall become effective upon the Effective Time (as such term is defined in the Separation Agreement).  In the event that the Separation Agreement is terminated for any reason prior to the Effective Time, this Agreement shall be null and void ab initio.  Except as expressly set forth herein, the Covenant Agreement shall remain in full force and effect in accordance with its terms as of the date of this Agreement.

 

2.                                      Assignment of the Covenant Agreement

 

(a)                                 At the Effective Time, EQT shall assign the Covenant Agreement and, except as expressly provided in this Agreement, all of its rights, obligations and liabilities thereunder to Equitrans Midstream.

 

 

(b)                                 EQT, Equitrans Midstream and Employee each acknowledges and agrees that Equitrans Midstream shall be a successor and assign of EQT for purposes of Section 22 of the Covenant Agreement and that, except as expressly provided in this Agreement, on and after the Effective Time, the term “the Company” in the Covenant Agreement shall be understood to be refer to Equitrans Midstream and its subsidiaries.

 

(c)                                  EQT, Equitrans Midstream and Employee each acknowledges and agrees that, if not for the Separation, the references to “the Company” in Sections 1 and 2 of the Covenant Agreement would include Equitrans Midstream as a subsidiary of EQT.  In order to clarify the rights of EQT and Equitrans Midstream on and after the Effective Time, and the obligations of Employee, under Sections 1 and 2 of the Covenant Agreement, notwithstanding Section 2(b) of this Agreement, the parties hereby agree as follows:

 

(i)                                     For purposes of Sections 1 and 2 of the Covenant Agreement, the term “the Company” shall refer to both EQT and Equitrans Midstream and their respective subsidiaries; provided, however, that (x) with respect to EQT and its subsidiaries (excluding Equitrans Midstream and its subsidiaries), the parties agree that Employee’s employment shall terminate at the Effective Time, and, accordingly, the post-termination non-competition and non-solicitation periods specified in Section 1 of the Covenant Agreement shall commence at the Effective Time; and (y) with respect to Equitrans Midstream and its subsidiaries, the post-termination non-competition and non-solicitation periods specified in Section 1 of the Covenant Agreement shall not commence, if at all, until the date Employee’s employment with Equitrans Midstream and its subsidiaries terminates.  For illustrative purposes only, assume (A) the Effective Time occurs on November 30, 2018 and (B) Employee’s employment with Equitrans Midstream and its subsidiaries terminates on March 15, 2021.  In this case, by virtue of the restriction on competition for twenty-four (24) months following Employee’s termination from employment contained in Section 1 of the Covenant Agreement, the post-termination non-competition period would cease to apply (x) with respect to EQT and its subsidiaries (excluding Equitrans Midstream and its subsidiaries), on November 30, 2020 and (y) with respect to Equitrans Midstream and its subsidiaries, on March 15, 2023.

 

(ii)                                  In the event that EQT and Equitrans Midstream (or their successors in interest) engage in activities that are competitive with each other, the non-competition covenant shall not apply while Employee is employed by Equitrans Midstream or its successor.

 

(iii)                               EQT shall be a third-party beneficiary of Sections 1 and 2 of the Covenant Agreement and may enforce its rights thereunder, to the same extent as Equitrans Midstream, (as clarified by this Agreement) in accordance with Section 6 of the Covenant Agreement.  Notwithstanding any provision of the Covenant Agreement to the contrary, Sections 1, 2, 6 and 11 of the Covenant Agreement may not be amended in any manner that would be adverse to the interests of EQT without EQT’s consent.

 

3.                                      Amendment to Section 3(e) of the Covenant Agreement.  Section 3(e) of the Covenant Agreement is hereby amended and restated in its entirety as follows in order to provide Employee with termination protection with respect to awards granted under the Equitrans Midstream Corporation 2018 Long-Term Incentive Plan:

 

(e)                                  Subject to Section 14 of this Agreement, all stock options, restricted stock, restricted stock units and other time-vesting equity awards granted to Employee under the Equitrans Midstream Corporation 2018 Long-Term Incentive Plan (as amended from time to time, and including any successor plan thereto, the “2018 LTIP”), the EQT Corporation 2014 Long-Term Incentive Plan (as amended from time to time, and including any successor plan thereto, the

 

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“2014 LTIP”), the EQT Midstream Services, LLC 2012 Long-Term Incentive Plan (as amended from time to time, and including any successor plan thereto, the “2012 LTIP”), the EQT GP Services, LLC 2015 Long-Term Incentive Plan (as amended from time to time, and including any successor plan thereto, the “2015 LTIP”), and any other long-term incentive plan of the Company (the 2018 LTIP, 2014 LTIP, the 2012 LTIP, the 2015 LTIP and any other long-term incentive plan of the Company are, collectively, the “LTIPs”) shall immediately become vested and exercisable in full and/or all restrictions on such awards shall lapse (for avoidance of doubt, this provision shall supersede any provision to the contrary contained in any award agreement or program); and

 

4.                                      Amendment to Section 3(f) of the Covenant Agreement.  The second paragraph of Section 3(f) of the Covenant Agreement is hereby amended to replace the reference to the “EQT Corporation Severance Pay Plan” with a reference to the “Equitrans Midstream Corporation Severance Pay Plan.”

 

5.                                      Amendment to Section 9 of the Covenant Agreement.  Clause (b) of Section 9 of the Covenant Agreement is hereby amended to replace the reference to “EQT Corporation” with a reference to the “Equitrans Midstream Corporation.”

 

6.                                      Amendment to Section 12 of the Covenant Agreement.  The last sentence of Section 12 of the Covenant Agreement is hereby amended and restated in its entirety as follows:

 

Any notice provided under this Section 12 (or otherwise under this Agreement) shall be in writing directed to the General Counsel, Equitrans Midstream Corporation, 625 Liberty Avenue, 20th Floor, Pittsburgh, PA 15222.

 

7.                                      Amendment to Exhibit A of the Covenant Agreement.  Exhibit A of the Covenant Agreement is hereby amended to replace all instances of “EQT Corporation” or “EQT” with “Equitrans Midstream Corporation.”

 

8.                                      2019 Annual Equity Awards.  A condition to Employee’s eligibility for a 2019 equity award under the Equitrans Midstream Corporation 2018 Long-Term Incentive Plan (the “2019 LTIP Award”) is Employee’s execution of this Agreement.  If Employee’s employment with Equitrans Midstream is terminated involuntarily by Equitrans Midstream without “Cause” (as defined in the Covenant Agreement) [or voluntarily for “Good Reason” (as defined in the Covenant Agreement)] prior to the grant to Employee of the 2019 LTIP Award, which is expected to occur on or about January 1, 2019, subject to Employee’s compliance with the Covenant Agreement (including execution and non-revocation of a release of claims), Employee shall receive a cash payment equal to the target value of the 2019 LTIP Award that would have been granted to Employee, which amount shall be paid (less applicable tax and other withholding) in a lump sum within 60 days of the termination of Employee’s employment.

 

[Signature page follows]

 

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IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement as of the date first above written.

 

	
EQT CORPORATION
    	
EQUITRANS MIDSTREAM   CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    

 

[Signature Page to Assignment Agreement]

 

 

	
EMPLOYEE
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
[NAME]
    	
 
    

 

[Signature Page to Assignment Agreement]

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