Document:

Exhibit

    

Exhibit 10.7(c)

PARTICIPANT AWARD AGREEMENT
(2019 PSU Program)

March 1, 2019
  
 Dear [Name]: 
  
Pursuant to the terms and conditions of the Equitrans Midstream Corporation 2018 Long-Term Incentive Plan (as amended from time to time, the “Plan”) and the 2019 Performance Share Unit Program (the “Program”), effective January 1, 2019, the Management Development and Compensation Committee (the “Committee”) of the Board of Directors of Equitrans Midstream Corporation (the “Company”) grants you «NumberUnits» Target Performance Share Units (the “Award”), the value of which is determined by reference to the Company’s common stock.  The terms and conditions of the Award, including, without limitation, vesting and distribution, shall be governed by the provisions of this Participant Award Agreement and the Program document attached hereto as Exhibit A; provided that the Award is also subject to the terms and limits included within the Plan.  As approved, the Award will be settled in shares of Company common stock; however, the Committee retains the discretion to settle the Award in cash, Company common stock or any combination thereof.
 
The terms contained in the Plan and the Program are hereby incorporated into and made a part of this Participant Award Agreement, and this Participant Award Agreement shall be governed by and construed in accordance with the Program and the Plan.  In the event of any actual or alleged conflict between (a) the provisions of the Plan and the provisions of this Participant Award Agreement, the provisions of the Plan shall be controlling and determinative, and (b) the provisions of this Participant Award Agreement and the terms of any written employment-related agreement that you have with the Company (including any confidentiality, non-solicitation, non-competition, change of control or similar agreement), the terms of such employment-related agreement shall be controlling and determinative.  

You may access important information about the Company and the Plan through the Company’s website.  Copies of the Plan and Plan Prospectus can be found by logging into the Fidelity NetBenefits website, which can be found at www.netbenefits.fidelity.com, and clicking on the “Stock Plans” tab and then following the prompts for your Plan documents.  Copies of information generally delivered to the Company’s shareholders can be found at www.equitransmidstream.com by clicking on the “Investors” link on the main page and then “Financial Filings” and “SEC Filings.” Paper copies of such documents are available upon request made to the Company’s Corporate Secretary.   

Your Award under the Program will be effective only if, no later than 45 days after the date of this Participant Award Agreement, (a) you accept your Award through the Fidelity NetBenefits website and (b) to the extent you are not already subject to a confidentiality, non-solicitation and non-competition agreement with the Company, you execute a confidentiality, non-solicitation and non-competition agreement acceptable to the Company.
 
When you accept your Award through the Fidelity NetBenefits website, you shall be deemed to have (a) acknowledged receipt of this Award granted on the date of this Participant Award Agreement (the terms of which are subject to the terms and conditions of this Participant Award Agreement, the Program document and the Plan) and copies of this Participant Award Agreement, the Program document and the Plan, and (b) agreed to be bound by all the provisions of this Participant Award Agreement, the Program document and the Plan.

1Exhibit

Exhibit 10.8
EQUITRANS MIDSTREAM CORPORATION
FIRST AMENDMENT TO THE 
2018 INCENTIVE PERFORMANCE SHARE UNIT PROGRAM

WHEREAS, EQT Corporation (“EQT”) sponsors the EQT Corporation 2018 Incentive Performance Share Unit Program (the “2018 Program”) effective as of January 1, 2018;

WHEREAS, on November 12, 2018, Equitrans Midstream Corporation (“ETRN”) became a publicly traded company when its former parent company, EQT, separated its midstream business from its upstream business (the “Separation”);

WHEREAS, in connection with Separation, EQT and ETRN entered into an Employee Matters Agreement dated November 12, 2018 (the “EMA”), pursuant to which EQT and ETRN agreed to the adjustment and replacement of equity compensation awards denominated in EQT common stock in part with awards denominated in ETRN common stock; 

WHEREAS, pursuant to Section 4.02(f)(iii) of the EMA, (A) a portion of all outstanding awards previously granted under the 2018 Program were converted into performance awards denominated in ETRN common stock (such portion the “SpinCo IPSUP Award (2018)”) and (B) two-thirds of the SpinCo IPSUP Award (2018) shall be earned based on new performance goals related to ETRN performance from the period from January 1, 2019 to December 31, 2020; and

WHEREAS, the ETRN Management Development and Compensation Committee (the “Compensation Committee”) wishes to amend the SpinCo IPSUP Award (2018) to adopt new performance goals related to ETRN pursuant to the EMA.

NOW, THEREFORE, the Compensation Committee hereby adopts the following amendment to the 2018 Program effective as of November 12, 2018.

		
	I.
	A new Section 21 is added to read as follows:

Section 21.  Separation and Distribution.  Notwithstanding anything herein to the contrary, on November 12, 2018, Equitrans Midstream Corporation (“ETRN”) became a publicly traded company when its former parent company, the Company, separated its midstream business from its upstream business (the “Separation”).  Pursuant to Section 4.02(f)(iii) of an Employee Matters Agreement entered into by the Company and ETRN in connection with the Separation (the “EMA”), a portion of all outstanding awards previously granted under the Program were converted into performance awards denominated in ETRN common stock (such portion the “SpinCo IPSUP Award (2018)”).  Therefore, notwithstanding anything herein to the contrary and pursuant to the terms of the EMA, effective as of November 12, 2018:

		
	(a)
	one-third of the SpinCo IPSUP Award (2018) shall be earned based on actual performance as of December 31, 2018 with respect to the performance goals applicable to such award immediately prior to the Separation, after which time payment with respect to such portion of the award shall be solely subject to a Participant’s continued employment with ETRN until the payment date following December 31, 2020; 

		
	(b)
	two-thirds of the SpinCo IPSUP Award (2018) (the “ETRN Performance Award”) shall be earned based on the following new performance conditions (collectively, the “ETRN Performance Conditions”): (i) ETRN’s total shareholder return (“Total Shareholder Return,” or “TSR”) relative to the TSR of an ETRN peer group (“Relative TSR”), calculated as described in Attachment E for the ETRN Performance Period (defined below), and (ii) the ETRN’s Cumulative TSR Per Share, calculated as described in Attachment F for the ETRN Performance Period.  For purposes of this Program, the “ETRN Performance Period” shall mean the period commencing on January 1, 2019 and continuing thereafter until the earlier of (a) December 31, 2020 and (b) the closing date of a Qualifying Change of Control; and 

		
	(c)
	the Payout Factor, as defined in Section 5 above, with respect to the ETRN Performance Award shall be calculated as set forth on Attachment G.

Except as otherwise set forth in this Section 21, the Program shall continue in full force and effect subject to the terms and conditions herein.

		
	II.
	New Attachments E through G are added to read as follows:

Attachment E

2018 Incentive Performance Share Unit Program
Calculation of Relative Total Shareholder Return

For purposes of the ETRN Performance Awards, “Total Shareholder Return” or “TSR” shall mean the total shareholder return as determined by dividing (i) the sum of (A) the Ending Period Average Price minus the Beginning Period Average Price plus (B) all dividends and other distributions paid on the issuer’s shares during the ETRN Performance Period, assuming such dividends and other distributions are invested in shares on the ex-dividend date for such dividend or other distribution, by (ii) the Beginning Period Average Price.  The ETRN Management Development and Compensation Committee (“ETRN MDCC”) shall have the authority to make appropriate equitable adjustments to account for extraordinary items affecting the TSR.

For purposes of calculating TSR, “Beginning Period Average Price” shall mean the average official closing price per share of the issuer over the 15 consecutive trading days ending with and including December 31, 2018 (if the applicable day is not a trading day, the immediately preceding trading day).
For purposes of calculating TSR, “Ending Period Average Price” shall mean the average official closing price per share of the issuer over the 15 consecutive trading days ending with and including December 31, 2020 (if the applicable day is not a trading day, the immediately preceding trading day).
Each company, including ETRN, will be ranked in descending order by the TSR so calculated.  In the event any member of the Peer Group identified below liquidates or reorganizes under the United States Bankruptcy Code (U.S.C. Title 11) before the end of the ETRN Performance Period, such member shall remain in the Peer Group for purposes of calculating the Payout Factor.  If any member of the Peer Group is acquired by another entity before the end of the ETRN Performance Period, such member shall be removed from the Peer Group for purposes of calculating the Payout Factor.  In all other cases involving merger, reorganization or material change in ownership, legal structure, or business operations of any member of the Peer Group before the end of the ETRN Performance Period, the ETRN MDCC shall have discretionary authority to retain, remove, or replace such member for purposes of calculating the Payout Factor.
Peer Group

For purposes of the ETRN Performance Awards, the Peer Group shall consist of the following companies:

	
	
	Enterprise Products Partners LP

	Energy Transfer LP

	Kinder Morgan Inc.

	The Williams Companies Inc.

	MPLX LP

	ONEOK Inc.

	Plains All American Pipeline LP

	Cheniere Energy Inc.

	Magellan Midstream Partners LP

	Targa Resources Corp

	Andeavor Logistics LP

	Western Gas Equity Partners LP

	Phillips 66 Partners LP

	Enable Midstream Partners LP

	Antero Midstream GP LP

	DCP Midstream LP

	Buckeye Partners LP

	Plains GP Holdings LP

	Crestwood Equity Partners LP

	EnLink Midstream LLC

Attachment F

2018 Incentive Performance Share Unit Program
Calculation of Cumulative TSR Per Share

For purposes of the ETRN Performance Awards, “Cumulative TSR Per Share” shall mean the number determined by adding the sum of (A) the Ending Period Average Price minus the Beginning Period Average Price plus (B) all dividends and other distributions paid on the issuer’s shares during the ETRN Performance Period.  The ETRN MDCC shall have the authority to make appropriate equitable adjustments to account for extraordinary items affecting the Cumulative TSR Per Share.

For purposes of calculating Cumulative TSR Per Share, “Beginning Period Average Price” shall mean the average official closing price per share of the issuer over the 15 consecutive trading days ending with and including December 31, 2018 (if the applicable day is not a trading day, the immediately preceding trading day).
For purposes of calculating Cumulative TSR Per Share, “Ending Period Average Price” shall mean the average official closing price per share of the issuer over the 15 consecutive trading days ending with and including December 31, 2020 (if the applicable day is not a trading day, the immediately preceding trading day).

Attachment G
2018 Incentive Performance Share Unit Program
Calculation of Payout Factor

The Payout Factor will be determined based on the level of achievement of the ETRN Performance Conditions during the ETRN Performance Period.  Performance under each metric is independent of performance under the other metrics.

The performance results for Relative TSR and Cumulative TSR Per Share based on the charts below are multiplied by the applicable weightings and then added together to determine a preliminary payout factor.  

Relative TSR Ranking (80% Weight)

	
				
	 
	Threshold
	Target
	Maximum

	Performance Goal
	At 25th percentile
	50th percentile
	At or above 75th percentile 

	Payout Factor
	50%
	100%
	300%

Cumulative TSR Per Share (20% Weight)

	
				
	 
	Threshold
	Target
	Maximum

	Performance Goal
	Cumulative 
TSR Per Share of
$3.80
	Cumulative TSR Per Share of
$7.10
	Cumulative 
TSR Per Share of $10.40

	Payout Factor
	50%
	100%
	300%

    
NOTE:  Above Threshold all Payout Factors are interpolated on a straight-line basis between the data points above, with 300% being the maximum in all cases.  Below threshold, the Payout Factor shall be zero.

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