Document:

<PAGE>   1
                                                                   Exhibit 10.02

                           CHANGE OF CONTROL AGREEMENT

         THIS AGREEMENT (the "Agreement") dated as of the 12th day of June, 2000
(the "Effective Date") by and between EQUITABLE RESOURCES, INC., a Pennsylvania
corporation with its principal place of business at Pittsburgh, Pennsylvania
(the "Company"), and, James M. Funk, an individual (the "Employee");

         WHEREAS, the Board of Directors of the Company (the "Board"), believes
that it is in the best interest of the Company and its shareholders to assure
that the Company will have the continued dedication of the Employee,
notwithstanding the possibility, threat or occurrence of a Change of Control (as
defined below) of the Company; that it is imperative to diminish the inevitable
distraction of the Employee by virtue of the personal uncertainties and risks
created by a pending or threatened Change of Control and to encourage the
Employee's full attention and dedication to the Company currently and in the
event of any threatened or pending Change of Control; and that it is appropriate
to provide the Employee with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Employee will be satisfied and which are competitive with those of other
corporations in the industry in which the Company's principal business activity
is conducted; and

         WHEREAS, in order to more fully accomplish the foregoing objectives,
the Company and the Employee desire to enter into this Agreement, which provides
for certain benefits payable to the Employee if the Employee's employment
terminates in certain circumstances following a Change in Control of the
Company.

         NOW THEREFORE, in consideration of the premises and mutual covenants
contained herein, and intending to be legally bound hereby, the parties hereto
agree as follows:

1.   Term. The term of this Agreement shall commence on the Effective Date
     hereof and, subject to Sections 3(f), 5 and 8, shall terminate on the
     earlier of (i) the date of the termination of Employee's employment by the
     Company for any reason prior to a Change of Control; or (ii) unless further
     extended as hereinafter set forth, the date which is thirty-six (36) months
     after the Effective Date; provided, that, commencing on the last day of the
     first full calendar month after the Effective Date and on the last day of
     each succeeding calendar month, the term of this Agreement shall be
     automatically extended without further action by either party (but not
     beyond the date of the termination of Employee's employment prior to a
     Change of Control) for one (1) additional month unless one party provides
     written notice to the other party that such party does not wish to extend
     the term of this Agreement. In the event that such notice shall have been
     delivered, the term of this Agreement shall no longer be subject to
     automatic extension and the term hereof shall expire on the date which is
     thirty-six (36) calendar months after the last day of the month in which
     such written notice is received.

2.   Change of Control. Change of Control shall mean any of the following events
     (each of such events being herein referred to as a "Change of Control"):

<PAGE>   2

     (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 of
          Directors; provided, however, that any acquisition by (x) the Company
          or any of its subsidiaries, or any employee benefit plan (or related
          trust) sponsored or maintained by the Company or any of its
          subsidiaries or (y) any person that is eligible, pursuant to Rule
          13d-1(b) under the Exchange Act (as such rule is in effect as of
          November 1, 1995) to file a statement on Schedule 13G with respect to
          its beneficial ownership of Company common stock and other voting
          securities, whether or not such person shall have filed a statement on
          Schedule 13G, unless such person shall have filed a statement on
          Schedule 13D with respect to beneficial ownership of fifteen percent
          or more of the Company's voting securities, shall not constitute a
          Change of Control;

     (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 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 the Company, any employee benefit

                                      -2-
<PAGE>   3

          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) 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
          Company's Board of Directors 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 cease for any reasons to constitute a
          majority of the number of directors then serving: individuals who, on
          the date hereof, constitute the entire Board of Directors 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 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 date hereof or whose
          appointment, election or nomination for election was previously so
          approved.

3.   Salary and Benefits Continuation.

     (a)  "Salary and Benefits Continuation" shall be defined to mean the
          following: (i) payment of an amount of cash equal to three (3) times
          the Employee's annual base salary in effect immediately prior to the
          Change of Control or the termination of Employee's employment,
          whichever is higher; (ii) payment of an amount of cash equal to three
          (3) times the highest annual incentive (bonus) payment earned by the
          Employee for any year in the three years prior to the termination of
          Employee's employment; (iii) provision to Employee and his/her
          eligible dependents of medical, long-term disability, dental and life
          insurance coverage (to the extent such coverage was in effect
          immediately prior to the Change of Control) for thirty-six (36)
          months; (iv) contribution by the Company to Employee's account under
          the Company's defined contribution retirement plan (known as the
          Equitable Resources, Inc. Employee Savings Plan) of an amount of cash
          equal to the amount that the Company would have contributed to such
          plan had the Employee continued to be employed by the Company for an
          additional thirty-six (36) months at a base salary equal to the
          Employee's base salary immediately prior to the Change of Control or
          the termination of Employee's employment, whichever is higher, such
          contribution being deemed to be made immediately prior to the
          termination of Employee's employment; provided, that to

                                      -3-
<PAGE>   4

          the extent that the amount of such contribution exceeds the amount
          then allowed to be contributed to the plan under the applicable rules
          relating to tax qualified retirement plans, then the excess shall be
          paid to the Employee in cash; (v) reimbursement to Employee of
          reasonable costs incurred by Employee for outplacement services in the
          twenty-four (24) month period following termination of Employee's
          employment.

     (b)  All amounts payable by the Company to the Employee in cash pursuant to
          Section 3(a) shall be made in a lump sum unless the Employee otherwise
          elects and notifies the Company in writing prior to the termination of
          Employee's employment of Employee's desire to have all payments made
          in accordance with the Company's regular salary and benefit payment
          practices, provided that (i) the lump sum payment or first payment
          shall be made within thirty (30) days after the Employee's termination
          hereunder, and (ii) the Employee may elect to defer such payments
          pursuant to the Company's then-existing deferred compensation plan(s).
          All other amounts payable by the Company to the Employee pursuant to
          Section 3 shall be paid or provided in accordance with the Company's
          standard payroll and reimbursement procedures, as in effect
          immediately prior to the Change of Control.

     (c)  In the event that medical, long-term disability, dental and life
          insurance benefits cannot be provided under appropriate Company group
          insurance policies, an amount equal to the premium necessary for the
          Employee to purchase directly the same level of coverage in effect
          immediately prior to the Change of Control shall be added to the
          Company's payments to Employee pursuant to Section 3(a) (payable in
          the manner elected by the Employee pursuant to Section 3(b)).

     (d)  If there is a Change of Control as defined above, the Company will
          provide Salary and Benefits Continuation if at any time during the
          first twenty-four (24) months following the Change of Control, either
          (i) the Company terminates the Employee's employment other than for
          Cause as defined in Section 4 below or (ii) the Employee terminates
          his/her employment for "Good Reason" as defined below.

     (e)  For purposes of this Agreement, "Good Reason" is defined as:

          (i)    Removal of the Employee from the position he/she held
                 immediately prior to the Change of Control (by reason other
                 than death, disability or Cause);

          (ii)   The assignment to the Employee of any duties inconsistent with
                 those performed by the Employee immediately prior to the Change
                 of Control or a substantial alteration in the nature or status
                 of the Employee's responsibilities which renders the Employee's
                 position to be of less dignity, responsibility or scope;

                                      -4-
<PAGE>   5

          (iii)  A reduction by the Company in the Employee's annual base salary
                 as in effect on the date hereof or as the same may be increased
                 from time to time, except for proportional across-the-board
                 salary reductions similarly affecting all executives of the
                 Company and all executives of any person in control of the
                 Company, provided, however, that in no event shall the
                 Employee's annual base salary be reduced by an amount equal to
                 ten percent or more of the Employee's annual base salary as of
                 the end of the calendar year immediately preceding the year in
                 which the Change of Control occurs, without the Employee's
                 consent;

          (iv)   The failure to grant the Employee an annual salary increase
                 reasonably necessary to maintain such salary as reasonably
                 comparable to salaries of senior executives holding positions
                 equivalent to the Employee's in the industry in which the
                 Company's then principal business activity is conducted;

          (v)    The Company requiring the Employee to be based anywhere other
                 than the Company's principal executive offices in the city in
                 which the Employee is principally located immediately prior to
                 the Change of Control, except for required travel on the
                 Company's business to an extent substantially consistent with
                 the Employee's business travel obligations prior to the Change
                 of Control;

          (vi)   Any material reduction by the Company of the benefits enjoyed
                 by the Employee under any of the Company's pension, retirement,
                 profit sharing, savings, life insurance, medical, health and
                 accident, disability or other employee benefit plans, programs
                 or arrangements, the taking of any action by the Company which
                 would directly or indirectly materially reduce any of such
                 benefits or deprive the Employee of any material fringe
                 benefits, or the failure by the Company to provide the Employee
                 with the number of paid vacation days to which he/she is
                 entitled on the basis of years of service with the Company in
                 accordance with the Company's normal vacation policy, provided
                 that this paragraph (f) shall not apply to any proportional
                 across-the-board reduction or action similarly affecting all
                 executives of the Company and all executives of any person in
                 control of the Company; or

          (vii)  The failure of the Company to obtain a satisfactory agreement
                 from any successor to assume and agree to perform this
                 Agreement, as contemplated in Section 15 hereof, or any other
                 material breach by the Company of its obligations contained in
                 this Agreement.

     (f)  The Employee's right to Salary and Benefits Continuation shall accrue
          upon the occurrence of either of the events specified in (i) or (ii)
          of Section 3(d) and shall

                                      -5-
<PAGE>   6

          continue as provided, notwithstanding the termination or expiration of
          this Agreement pursuant to Section 1 hereof. The Employee's subsequent
          employment, death or disability within the thirty-six (36) month
          period following the Employee's termination of employment in
          connection with a Change of Control shall not affect the Company's
          obligation to continue making Salary and Benefits Continuation
          payments. The Employee shall not be required to mitigate the amount of
          any payment provided for in this Section 3 by seeking employment or
          otherwise. The rights to Salary and Benefits Continuation shall be in
          addition to whatever other benefits the Employee may be entitled to
          under any other agreement or compensation plan, program or arrangement
          of the Company; provided, that the Employee shall not be entitled to
          any separate or additional severance payments pursuant to the
          Company's severance plan as then in effect and generally applicable to
          similarly situated employees. The Company shall be authorized to
          withhold from any payment to the Employee, his/her estate or his/her
          beneficiaries hereunder all such amounts, if any, that the Company may
          reasonably determine it is required to withhold pursuant to any
          applicable law or regulation.

4.   Termination of Employee for Cause.

     (a)  Upon or following a Change of Control, the Company may at any time
          terminate the Employee's employment for Cause. Termination of
          employment by the Company for "Cause" shall mean termination upon: (i)
          the willful and continued failure by the Employee to substantially
          perform his/her duties with the Company (other than (A) any such
          failure resulting from Employee's disability or (B) any such actual or
          anticipated failure resulting from Employee's termination of his/her
          employment for Good Reason), after a written demand for substantial
          performance is delivered to the Employee by the Board of Directors
          which specifically identifies the manner in which the Board of
          Directors believes that the Employee has not substantially performed
          his/her duties, and which failure has not been cured within thirty
          days (30) after such written demand; or (ii) the willful and continued
          engaging by the Employee in conduct which is demonstrably and
          materially injurious to the Company, monetarily or otherwise, or (iii)
          the breach by the Employee of the confidentiality provision set forth
          in Section 8 hereof.

     (b)  For purposes of this Section 4, no act, or failure to act, on the
          Employee's part shall be considered "willful" unless done, or omitted
          to be done, by the Employee in bad faith and without reasonable belief
          that such action or omission was in the best interest of the Company.
          Notwithstanding the foregoing, the Employee shall not be deemed to
          have been terminated for Cause unless and until there shall have been
          delivered to him/her a copy of a resolution duly adopted by the
          affirmative vote of not less than three-quarters of the entire
          membership of the Board of Directors at a meeting of the Board of
          Directors called and held for that purpose (after reasonable notice to
          the Employee and an opportunity for the Employee,

                                      -6-
<PAGE>   7

          together with his/her counsel, to be heard before the Board of
          Directors) finding that in the good faith opinion of the Board of
          Directors the Employee is guilty of the conduct set forth above in
          clauses (a)(i), (ii) or (iii) of this Section 4 and specifying the
          particulars thereof in detail.

5.   Prior Termination. Anything in this Agreement to the contrary
     notwithstanding, if the Employee's employment with the Company is
     terminated prior to the date on which a Change of Control occurs either (i)
     by the Company other than for Cause or (ii) by the Employee for Good
     Reason, and it is reasonably demonstrated by Employee that such termination
     of employment (a) was at the request of a third party who has taken steps
     reasonably calculated to effect the Change of Control, or (b) otherwise
     arose in connection with or anticipation of the Change of Control, then for
     all purposes of this Agreement the termination shall be deemed to have
     occurred upon a Change of Control and the Employee will be entitled to
     Salary and Benefits Continuation as provided for in Section 3 hereof.

6.   Employment at Will. Subject to the provisions of any other agreement
     between the Employee and the Company, the Employee shall remain an employee
     at will and nothing herein shall confer upon the Employee any right to
     continued employment and shall not affect the right of the Company to
     terminate the Employee for any reason not prohibited by law; provided,
     however, that any such removal shall be without prejudice to any rights the
     Employee may have to Salary and Benefits Continuation hereunder.

7.   Construction of Agreement.

     (a)  Governing Law. This Agreement shall be governed by and construed under
          the laws of the Commonwealth of Pennsylvania without regard to its
          conflict of law provisions.

     (b)  Severability. In the event that any one or more of the provisions of
          this Agreement shall be held to be invalid, illegal or unenforceable,
          the validity, legality or enforceability of the remaining provisions
          shall not in any way be affected or impaired thereby.

     (c)  Headings. The descriptive headings of the several paragraphs of this
          Agreement are inserted for convenience of reference only and shall not
          constitute a part of this Agreement.

8.   Covenant as to Confidential Information.

     (a)  Confidentiality of Information and Nondisclosure. The Employee
          acknowledges and agrees that his/her employment by the Company under
          this Agreement necessarily involves his/her knowledge of and access to
          confidential and proprietary information pertaining to the business of
          the Company and its subsidiaries. Accordingly, the Employee agrees
          that at all times during the term

                                      -7-
<PAGE>   8

          of this Agreement and for a period of two (2) years after the
          termination of the Employee's employment hereunder, he/she will not,
          directly or indirectly, without the express written authority of the
          Company, unless directed by applicable legal authority having
          jurisdiction over the Employee, disclose to or use, or knowingly
          permit to be so disclosed or used, for the benefit of himself/herself,
          any person, corporation or other entity other than the Company, (i)
          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, (ii) any
          management, operational, trade, technical or other secrets or any
          other proprietary information or other data of the Company or its
          subsidiaries, or (iii) any other information related to the Company or
          its subsidiaries or which the Employee subsidiaries which has not been
          published and is not generally known outside of the Company. The
          Employee acknowledges that all of the foregoing, constitutes
          confidential and proprietary information, which is the exclusive
          property of the Company.

     (b)  Company Remedies. The Employee acknowledges and agrees that any breach
          of this Agreement by him/her will result in immediate irreparable harm
          to the Company, and that the Company cannot be reasonably or
          adequately compensated by damages in an action at law. In the event of
          an actual or threatened breach by the Employee of the provisions of
          this Section 8, the Company shall be entitled, to the extent
          permissible by law, immediately to cease to pay or provide the
          Employee or his/her dependents any compensation or benefit being, or
          to be, paid or provided to him pursuant to Section 3 of this
          Agreement, and also to obtain immediate injunctive relief restraining
          the Employee from conduct in breach or threatened breach of the
          covenants contained in this Section 8. Nothing herein shall be
          construed as prohibiting the Company from pursuing any other remedies
          available to it for such breach or threatened breach, including the
          recovery of damages from the Employee.

9.   Reimbursement of Fees. The Company agrees to pay, to the full extent
     permitted by law, all legal fees and expenses which the Employee may
     reasonably incur as a result of any contest by the Company, Internal
     Revenue Service or others regarding the validity or enforceability of, or
     liability under, any provision of this Agreement or any guarantee of
     performance thereof (including as a result of any contest by the Employee
     about the amount of any payment pursuant to Section 3 of this Agreement) or
     in connection with any dispute arising from this Agreement, regardless of
     whether Employee prevails in any such contest or dispute.

10.  Tax Gross-Up.

     (a)  Anything in this Agreement to the contrary notwithstanding, in the
          event it shall be determined that any payment or distribution by the
          Company to or for the

                                      -8-
<PAGE>   9

          benefit of the Employee (whether paid or payable or distributed or
          distributable pursuant to the terms of this Agreement or otherwise) (a
          "Payment") (i) would be subject to the excise tax imposed by section
          4999 of the Code or any interest or penalties are incurred by the
          Employee with respect to the excise tax (such excise tax, together
          with any such interest and penalties, are hereinafter collectively
          referred to as the "Excise Tax") or (ii) is made pursuant to a Change
          of Control, then the Employee shall be entitled to receive an
          additional payment (a "Gross-Up Payment") in an amount such that after
          payment by the Employee of all taxes (including any interest or
          penalties imposed with respect to such taxes), including, without
          limitation, any income taxes (and any interest and penalties imposed
          with respect thereto) and Excise Tax imposed on the Payment and
          Gross-Up Payment, the Employee retains an amount equal to (x) the
          Payment plus (y) the Excise Tax (if any) imposed upon the Payment and
          the Gross-Up Payment.

     (b)  Subject to the provisions of Section 10(c), all determinations
          required to be made under this Section 10, including whether and when
          a Gross-Up Payment is required and the amount of such Gross-Up
          Payment, shall be made by a nationally recognized accounting firm
          designated by the Company (the "Accounting Firm") which shall provide
          detailed supporting calculations both to the Company and the Employee
          within fifteen (15) business days after there has been a Payment, or
          such earlier time as requested by the Company. In the event that the
          Accounting Firm is serving as accountant or auditor for the
          individual, entity or group effecting the Change in Control, the
          Company shall appoint another nationally recognized accounting firm to
          make the determinations required hereunder (which accounting firm
          shall then be referred to as the Accounting Firm hereunder). All fees
          and expenses of the Accounting Firm shall be borne solely by the
          Company. Any Gross-Up Payment, as determined pursuant to this Section
          10, shall be paid by the Company to the Employee within five days of
          the receipt of the Accounting Firm's determination. Any determination
          by the Accounting Firm shall be binding upon the Company and the
          Employee. As a result of the uncertainty in the application of section
          4999 of the Code at the time of the initial determination by the
          Accounting Firm hereunder, it is possible that Gross-Up Payments which
          will not have been made by the Company should have been made
          ("Underpayment"), consistent with the calculations required to be made
          hereunder. In the event that the Company exhausts its remedies
          pursuant to Section 10(c) and the Employee thereafter is required to
          make a payment of any Excise Tax, the Accounting Firm shall determine
          the amount of the Underpayment that has occurred and any such
          Underpayment shall be promptly paid by the Company to or for the
          benefit of the Employee.

     (c)  The Employee shall notify the Company in writing of any claim by the
          Internal Revenue Service that, if successful, would require the
          payment by the Company of the Gross-Up Payment. Such notification
          shall be given as soon as practicable but no later than ten (10)
          business days after the Employee is informed in writing

                                      -9-
<PAGE>   10

          of such claim and shall apprise the Company of the nature of such
          claim and the date on which such claim is requested to be paid. The
          Employee shall not pay such claim prior to the expiration of the
          30-day period following the date on which it gives such notice to the
          Company (or such shorter period ending on the date any payment of
          taxes with respect to such claim is due). If the Company notifies the
          Employee in writing prior to the expiration of such period that it
          desires to contest such claim, the Employee shall:

               (i)   give the Company any information reasonably requested by
                     the Company relating to such claim;

               (ii)  take such action in connection with contesting such claim
                     as the Company shall reasonably request in writing from
                     time to time, including, without limitation, accepting
                     legal representation with respect to such claim by an
                     attorney reasonably selected by the Company;

               (iii) cooperate with the Company in good faith in order
                     effectively to contest such claim; and

               (iv)  permit the Company to participate in any proceedings
                     relating to such claim;

          provided, however, that the Company shall bear and pay directly all
          costs and expenses (including additional interest and penalties)
          incurred in connection with such contest and shall indemnify and hold
          the Employee harmless, on an after-tax basis, for any Excise Tax or
          income tax (including interest and penalties with respect thereto)
          imposed as a result of such representation and payment of costs and
          expenses. Without limitation on the foregoing provisions of this
          Section 10(c), the Company shall control all proceedings taken in
          connection with such contest and, at its sole option, may pursue or
          forego any and all administrative appeals, proceedings, hearings and
          conferences with the taxing authority in respect of such claim and
          may, at its sole option, either direct the Employee to pay the tax
          claimed and sue for a refund or contest the claim in any permissible
          manner, and the Employee agrees to prosecute such contest to a
          determination before any administrative tribunal, in a court of
          initial jurisdiction and in one or more appellate courts, as the
          Company shall determine; provided, however, that if the Company
          directs the Employee to pay such claim and sue for a refund, the
          Company shall advance the amount of such payment to the Employee, on
          an interest-free basis, and shall indemnify and hold the Employee
          harmless, on an after-tax basis, from any Excise Tax or income tax
          (including interest or penalties with respect thereto) imposed with
          respect to such advance or with respect to any imputed income with
          respect to such advance; and further provided that any extension of
          the statute of limitations relating to payment of taxes for the
          taxable year of the Employee with respect to which such contested
          amount is claimed to

                                      -10-
<PAGE>   11

          be due is limited solely to such contested amount. Furthermore, the
          Company's control of the contest shall be limited to issues with
          respect to which a Gross-Up Payment would be payable hereunder and the
          Employee shall be entitled to settle or contest, as the case may be,
          any other issue raised by the Internal Revenue Service or any other
          taxing authority.

     (d)  If, after the receipt by the Employee of an amount advanced by the
          Company pursuant to Section 10(c), the Employee becomes entitled to
          receive any refund with respect to such claim, the Employee shall
          (subject to the Company's complying with the requirements of Section
          10) promptly pay to the Company the amount of such refund (together
          with any interest paid or credited thereon after taxes applicable
          thereto). If, after the receipt by the Employee of an amount advanced
          by the Company pursuant to Section 10(c), a determination is made that
          the Employee shall not be entitled to any refund with respect to such
          claim and the Company does not notify the Employee in writing of its
          intent to contest such denial of refund prior to the expiration of 30
          days after such determination, then such advance shall be forgiven and
          shall not be required to be repaid and the amount of such advance
          shall offset, to the extent thereof, the amount of Gross-Up Payment
          required to be paid.

     (e)  The payments provided for in this Section 10 hereof shall be made not
          later than the tenth (10th) day following the termination of the
          Employee's employment; provided, however, that if the amounts of such
          payments cannot be finally determined on or before such day, the
          Company shall pay to the Employee on such day an estimate, as
          determined in good faith by the Employee of the minimum amount of such
          payments to which the Employee is clearly entitled and shall pay the
          remainder of such payments (together with interest at 120% of the rate
          provided in section 1274(b)(2)(B) of the Code) as soon as the amount
          thereof can be determined but in no event later than the thirtieth
          (30th) day after the termination of the Employee's employment. In the
          event that the amount of the estimated payments exceeds the amount
          subsequently determined to have been due, such excess shall constitute
          a loan by the Company to the Employee, payable on the fifth (5th)
          business day after demand by the Company (together with interest at
          120% of the rate provided in section 1274(b)(2)(B) of the Code). In
          the event the Company should fail to pay when due the amounts
          described in this Section 10, the Employee shall also be entitled to
          receive from the Company an amount representing interest on any unpaid
          or untimely paid amounts from the due date, as determined under this
          Section 10, to the date of payment at a rate equal to 120% of the rate
          provided in section 1274(b)(2)(B) of the Code.

11.  Resolution of Differences Over Breaches of Agreement. Except as otherwise
     provided herein, in the event of any controversy, dispute or claim arising
     out of, or relating to this Agreement, or the breach thereof, or arising
     out of any other matter relating to the Employee's employment with the
     Company or the termination of such employment, the

                                      -11-

<PAGE>   12

     parties may seek recourse only for temporary or preliminary injunctive
     relief to the courts having jurisdiction thereof and if any relief other
     than injunctive relief is sought, the Company and the Employee agree that
     such underlying controversy, dispute or claim shall be settled by
     arbitration conducted in Pittsburgh, Pennsylvania in accordance with this
     Section 11 of this Agreement and the Commercial Arbitration Rules of the
     American Arbitration Association ("AAA"). The matter shall be heard and
     decided, and awards rendered by a panel of three (3) arbitrators (the
     "Arbitration Panel"). The Company and the Employee shall each select one
     arbitrator from the AAA National Panel of Commercial Arbitrators (the
     "Commercial Panel") and AAA shall select a third arbitrator from the
     Commercial Panel. The award rendered by the Arbitration Panel shall be
     final and binding as between the parties hereto and their heirs, executors,
     administrators, successors and assigns, and judgment on the award may be
     entered by any court having jurisdiction thereof.

12.  Treatment of Certain Incentive Awards. All "Awards" held by the Employee
     under the Company's 1999 Long-Term Incentive Plan (the "1999 Plan") or any
     business unit breakthrough incentive plan (the "Breakthrough Plan") shall,
     upon a Change of Control, be treated in accordance with the terms of those
     Plans as in effect on the date of this Agreement, without regard to the
     subsequent amendment of those Plans. For purposes of this Section 12, the
     terms "Award" and "Change of Control" shall have the meanings ascribed to
     them in the 1999 Plan and the Breakthrough Plan, as the case may be.

13.  Release. The Employee hereby acknowledges and agrees that prior to the
     Employee's or his/her dependents' right to receive from the Company any
     compensation or benefit to be paid or provided to him/her or his/her
     dependents pursuant to Section 3 of this Agreement, the Employee may be
     required by the Company, in its sole discretion, to execute a release in a
     form reasonably acceptable to the Company, which releases any and all
     claims (other than amounts to be paid to Employee as expressly provided for
     under this Agreement) the Employee has or may have against the Company or
     its subsidiaries, agents, officers, directors, successors or assigns
     arising under any public policy, tort or common law or any provision of
     state, federal or local law, including, but not limited to, the
     Pennsylvania Human Relations Act, the Americans with Disabilities Act,
     Title VII of the Civil Rights Act of 1964, the Civil Rights Protection Act,
     Family and Medical Leave Act, the Fair Labor Standards Act, or the Age
     Discrimination in Employment Act of 1967.

14.  Waiver. The waiver by a party hereto of any breach by the other party
     hereto of any provision of this Agreement shall not operate or be construed
     as a waiver of any subsequent breach by a party hereto.

15.  Assignment. This Agreement shall be binding upon and inure to the benefit
     of the successors and assigns of the Company. The Company shall be
     obligated to require any successor (whether direct or indirect, by
     purchase, merger, consolidation or otherwise) to all or substantially all
     of the Company's business or assets, by a written agreement in

                                      -12-

<PAGE>   13

     form and substance satisfactory to the Employee, to expressly assume and
     agree to perform this Agreement in the same manner and to the same extent
     that the Company would be required to perform if no succession had taken
     place. This Agreement shall inure to the extent provided hereunder to the
     benefit of and be enforceable by the Employee or his/her legal
     representatives, executors, administrators, successors, heirs,
     distributees, devisees and legatees. The Employee may not delegate any of
     his/her duties, responsibilities, obligations or positions hereunder to any
     person and any such purported delegation by him shall be void and of no
     force and effect with respect to matters relating to his/her employment and
     termination of employment. Without limiting the foregoing, the Employee's
     rights to receive payments and benefits hereunder shall not be assignable
     or transferable, other than a transfer by Employee's will or by the laws of
     descent and distribution.

16.  Notices. Any notices required or permitted to be given under this Agreement
     shall be sufficient if in writing, and if personally delivered or when sent
     by first class certified or registered mail, postage prepaid, return
     receipt requested -- in the case of the Employee, to his/her residence
     address as set forth below, and in the case of the Company, to the address
     of its principal place of business as set forth below, in care of the
     Chairman of the Board -- or to such other person or at such other address
     with respect to each party as such party shall notify the other in writing.

17.  Pronouns. Pronouns stated in either the masculine, feminine or neuter
     gender shall include the masculine, feminine and neuter.

18.  Entire Agreement. This Agreement contains the entire agreement of the
     parties concerning the matters set forth herein and all promises,
     representations, understandings, arrangements and prior agreements
     regarding the subject matter hereof are merged herein and superseded
     hereby. The provisions of this Agreement may not be amended, modified,
     repealed, waived, extended or discharged except by an agreement in writing
     signed by the party against whom enforcement of any amendment,
     modification, repeal, waiver, extension or discharge is sought. No person
     acting other than pursuant to a resolution of the Board of Directors shall
     have authority on behalf of the Company to agree to amend, modify, repeal,
     waive, extend or discharge any provision of this Agreement or anything in
     reference thereto or to exercise any of the Company's rights to terminate
     or to fail to extend this Agreement.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by
its officers thereunto duly authorized, and the Employee has hereunto set
his/her hand, all as of the day and year first above written.

ATTEST:                                      EQUITABLE RESOURCES, INC.

/s/ JEAN F. MARKS                            By:  /s/ GREGORY R. SPENCER
----------------------------------              --------------------------------
    Jean F. Marks                               Gregory R. Spencer
                                                Sr. Vice President and Chief
                                                Administrative Officer

                                      -13-

<PAGE>   14

                                             Address:

                                             One Oxford Centre
                                             Suite 3300
                                             Pittsburgh, PA  15219

WITNESS:

/s/ ESTELLE E. CHRISTIAN                     /s/ JAMES M. FUNK
--------------------------------             -----------------------------------
Estelle E. Christian                         James M. Funk

                                             Address:

                                             -----------------------------------

                                             -----------------------------------

                                      -14-<PAGE>   1
                                                                    Exhibit 10.3

                            EQUITABLE RESOURCES, INC.

                           DEFERRED COMPENSATION PLAN

                   AMENDED AND RESTATED EFFECTIVE MAY 16, 2000

<PAGE>   2

                            EQUITABLE RESOURCES, INC.

                           DEFERRED COMPENSATION PLAN

                                Table of Contents

<TABLE>
<S>                                                                                                            <C>
ARTICLE I.........................................................................................................5
   1.1   STATEMENT OF PURPOSE.....................................................................................5

ARTICLE II........................................................................................................6

DEFINITIONS.......................................................................................................6
   2.1   ACCOUNT..................................................................................................6
   2.2   BASE SALARY..............................................................................................6
   2.3   BENEFICIARY..............................................................................................6
   2.4   BOARD....................................................................................................6
   2.5   BONUS....................................................................................................6
   2.6   CHANGE IN CONTROL........................................................................................6
   2.7   CODE.....................................................................................................7
   2.8   COMMITTEE................................................................................................7
   2.9   COMPANY..................................................................................................7
   2.10  COMPENSATION.............................................................................................7
   2.11  CREDITED SERVICE.........................................................................................7
   2.12  DEFERRAL ACCOUNT.........................................................................................7
   2.13  DEFERRAL AMOUNT..........................................................................................8
   2.14  DEFERRAL BENEFIT.........................................................................................8
   2.15  DEFERRAL ELECTION........................................................................................8
   2.16  DISABILITY...............................................................................................8
   2.17  EARLY RETIREMENT.........................................................................................8
   2.18  ELIGIBLE EMPLOYEE........................................................................................8
   2.19  EMPLOYER.................................................................................................8
   2.20  HARDSHIP WITHDRAWAL......................................................................................8
   2.21  INVESTMENT RETURN RATE...................................................................................8
   2.22  MATCHING ACCOUNT.........................................................................................9
   2.23  MATCHING AMOUNT..........................................................................................9
   2.24  PARTICIPANT..............................................................................................9
   2.25  PARTICIPATION AGREEMENT..................................................................................9
   2.26  PLAN.....................................................................................................9
   2.27  PLAN YEAR................................................................................................9
   2.28  REGULAR DEFERRAL AMOUNT..................................................................................9
   2.29  REGULAR MATCHING AMOUNT..................................................................................9
   2.30  RETIREMENT...............................................................................................9
   2.31  SELECTED AFFILIATE.......................................................................................9
   2.32  SPECIAL BONUS DEFERRAL AMOUNT...........................................................................10
   2.33  SPECIAL BONUS MATCHING AMOUNT...........................................................................10
   2.34  VALUATION DATE..........................................................................................10

ARTICLE III......................................................................................................11

ELIGIBILITY AND PARTICIPATION....................................................................................11
   3.1   ELIGIBILITY.............................................................................................11
   3.2   PARTICIPATION...........................................................................................11
   3.3   CHANGE IN PARTICIPATION STATUS..........................................................................11
   3.4   INELIGIBLE PARTICIPANT..................................................................................11
</TABLE>

                                      -2-

<PAGE>   3

<TABLE>
<S>                                                                                                            <C>
ARTICLE IV.......................................................................................................12

DEFERRAL OF COMPENSATION.........................................................................................12
   4.1   DEFERRAL AMOUNTS........................................................................................12
   4.2   MATCHING AMOUNTS........................................................................................12
   4.3   CREDITING OF DEFERRAL AMOUNTS AND MATCHING AMOUNTS......................................................13

ARTICLE V........................................................................................................14

BENEFIT ACCOUNTS.................................................................................................14
   5.1   VALUATION OF ACCOUNT....................................................................................14
   5.2   CREDITING OF INVESTMENT RETURN..........................................................................14
   5.3   STATEMENT OF ACCOUNTS...................................................................................14
   5.4   VESTING OF AMOUNTS......................................................................................14
   5.5   INVESTMENT OF REGULAR DEFERRAL AMOUNTS..................................................................15
   5.6   INVESTMENT OF SPECIAL BONUS DEFERRAL AMOUNTS AND MATCHING AMOUNTS.......................................15

ARTICLE VI.......................................................................................................16

PAYMENT OF BENEFITS..............................................................................................16
   6.1   PAYMENT OF DEFERRAL BENEFIT UPON DEATH, DISABILITY OR RETIREMENT........................................16
   6.2   PAYMENT OF DEFERRAL BENEFIT UPON TERMINATION............................................................16
   6.3   PAYMENTS TO BENEFICIARIES...............................................................................16
   6.4   IN-SERVICE DISTRIBUTION.................................................................................16
   6.5   HARDSHIP WITHDRAWAL.....................................................................................16
   6.6   FORM OF PAYMENT.........................................................................................17
   6.7   COMMENCEMENT OF PAYMENTS................................................................................17
   6.8   SMALL BENEFIT...........................................................................................17

ARTICLE VII......................................................................................................18

BENEFICIARY DESIGNATION..........................................................................................18
   7.1   BENEFICIARY DESIGNATION.................................................................................18
   7.2   CHANGE OF BENEFICIARY DESIGNATION.......................................................................18
   7.3   NO DESIGNATION..........................................................................................18
   7.4   EFFECT OF PAYMENT.......................................................................................18

ARTICLE VIII.....................................................................................................19

ADMINISTRATION...................................................................................................19
   8.1   COMMITTEE...............................................................................................19
   8.2   INVESTMENTS.............................................................................................19
   8.3   AGENTS..................................................................................................19
   8.4   BINDING EFFECT OF DECISIONS.............................................................................19
   8.5   INDEMNIFICATION OF COMMITTEE............................................................................19

ARTICLE IX.......................................................................................................20

AMENDMENT AND TERMINATION OF PLAN................................................................................20
   9.1   AMENDMENT...............................................................................................20
   9.2   TERMINATION.............................................................................................20

ARTICLE X........................................................................................................21
</TABLE>

                                      -3-

<PAGE>   4

<TABLE>
<S>                                                                                                            <C>
MISCELLANEOUS....................................................................................................21
   10.1     FUNDING..............................................................................................21
   10.2     NONASSIGNABILITY.....................................................................................21
   10.3     LEGAL FEES AND EXPENSES..............................................................................21
   10.4     CAPTIONS.............................................................................................22
   10.5     GOVERNING LAW........................................................................................22
   10.6     SUCCESSORS...........................................................................................22
   10.7     RIGHT TO CONTINUED SERVICE...........................................................................22

EXHIBIT A........................................................................................................23

EXHIBIT B........................................................................................................24

EXHIBIT C........................................................................................................25
</TABLE>

                                      -4-
<PAGE>   5

                                    ARTICLE I

                  1.1      STATEMENT OF PURPOSE

                  This is the Equitable Resources, Inc. Deferred Compensation
Plan (the "Plan") made in the form of this Plan and in related agreements
between the Employer and certain management or highly compensated employees. The
purpose of the Plan is to provide management and highly compensated employees of
the Employer with the option to defer the receipt of portions of their
compensation payable for services rendered to the Employer. It is intended that
the Plan will assist in attracting and retaining qualified individuals to serve
as officers and managers of the Employer. The Plan originally was effective as
of January 1, 1996, and subsequently was amended and restated effective as of
October 27, 1999. The Plan was again amended and restated as of May 16, 2000, to
reflect a change in the benefits committee structure of the Company.

                                      -5-
<PAGE>   6

                                   ARTICLE II

                                   DEFINITIONS

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

                  2.1      ACCOUNT.

                  "Account" means the sum of a Participant' s Deferral Account
and Matching Account.

                  2.2      BASE SALARY.

                  "Base Salary" means a Participant's base earnings paid by the
Employer to a Participant without regard to any increases or decreases in base
earnings as a result of an election to defer base earnings under this Plan or
(ii) an election between benefits or cash provided under a Plan of an Employer
maintained pursuant to Section 125 or 401(k) of the Code, and as limited in
Exhibit B attached hereto.

                  2.3      BENEFICIARY.

                  "Beneficiary" means the person or persons designated or deemed
to be designated by the Participant pursuant to Article VII to receive benefits
payable under the Plan in the event of the Participant's death.

                  2.4      BOARD.

                  "Board" means the Board of Directors of the Company.

                  2.5      BONUS.

                  "Bonus" means a Participant's bonus or sales commission paid
by the Employer to a Participant under the plans listed in Exhibit B attached
hereto and to the degree limited in Exhibit B, as applicable, without regard to
any decreases as a result of an election to defer all or any portion of a bonus
under this Plan or (ii) an election between benefits or cash provided under a
plan of the Employer maintained pursuant to Section 401(k) of the Code.

                  2.6      CHANGE IN CONTROL.

                  "Change in Control" means any of the following events:

                  (a) The sale or other disposition by the Company of all or
substantially all of its assets to a single purchaser or to a group of
purchasers, other than to a corporation with respect to which, following such
sale or disposition, more than eighty percent (80%) of, respectively, the then
outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of the
Board of Directors is then owned beneficially, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the outstanding Company common stock and the combined
voting power of the then outstanding voting securities immediately prior to such
sale or disposition in substantially the same proportion as their ownership of
the outstanding Company common stock and voting power immediately prior to such
sale or disposition.

                  (b) The acquisition in one or more transactions by any person
or group, directly or indirectly, of beneficial ownership of twenty percent
(20%) or more of the

                                      -6-
<PAGE>   7

outstanding shares of Company common stock or the combined voting power of the
then outstanding voting securities of the Company entitled to vote generally in
the election of the Board; provided, however, that any acquisition by (x) the
Company or any of its subsidiaries, or any employee benefit plan (or related
trust) sponsored or maintained by the Company or any of its subsidiaries or (y)
any person that is eligible, pursuant to Rule 13d-1(b) under the Exchange Act
(as such rule is in effect as of November 1, 1995) to file a statement on
Schedule 13G with respect to its beneficial ownership of Company common stock
and other voting securities whether or not such person shall have filed a
statement on Schedule 13G, unless such person shall have filed a statement on
Schedule 13D with respect to beneficial ownership of fifteen percent (15%) or
more of the Company's voting securities, shall not constitute a Change of
Control;

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

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

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

                  2.7      CODE.

                  "Code" means the Internal Revenue Code of 1986, as amended.

                  2.8      COMMITTEE.

                  "Committee " has the meaning set forth in Section 8.1.

                  2.9      COMPANY.

                  "Company" means Equitable Resources, Inc. and any successor
thereto.

                  2.10     COMPENSATION.

                  "Compensation" means the Base Salary and Bonus payable with
respect to an Eligible Employee for each plan year.

                  2.11     CREDITED SERVICE.

                  "Credited Service" means the sum of all periods of a
Participant's employment by the Company or a Selected Affiliate for which
service credit is given under the Equitable Resources Pension Plan.

                  2.12     DEFERRAL ACCOUNT.

                  "Deferral Account" means the account maintained on the books
of the Employer for the purpose of accounting for the amount of Compensation
that each Participant elects to defer under the Plan and for the amount of
investment return credited thereto for each Participant pursuant to Article V.

                                      -7-
<PAGE>   8

                  2.13     DEFERRAL AMOUNT.

                  "Deferral Amount" means the Regular Deferral Amounts and
Special Bonus Deferral Amounts deferred by a Participant under Section 4.1.

                  2.14     DEFERRAL BENEFIT.

                  "Deferral Benefit" means the benefit payable to a Participant
or his or her Beneficiary pursuant to Article VI.

                  2.15     DEFERRAL ELECTION.

                  "Deferral Election" means the written election made by a
Participant to defer Compensation pursuant to Article IV.

                  2.16     DISABILITY.

                  "Disability" means a Participant's Disability as defined under
the Company's Long Term Disability Plan or its successors.

                  2.17     EARLY RETIREMENT.

                  "Early Retirement" will be granted by the Committee at its
sole discretion.

                  2.18     ELIGIBLE EMPLOYEE.

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

                  2.19     EMPLOYER.

                  "Employer" means, with respect to a Participant, the Company
or the Selected Affiliate which pays such Participant's Compensation.

                  2.20     HARDSHIP WITHDRAWAL.

                  "Hardship Withdrawal" has the meaning set forth in
Section 6.5.

                  2.21     INVESTMENT RETURN RATE.

                  "Investment Return Rate" means:

                  (a) In the case of an investment named in Exhibit C 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 an investment named in Exhibit C of an
equity investment nature, the increase or decrease in deemed value and 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 accordance with the procedures applicable to investments in the
Equitable Resources Common Stock Fund under the Equitable 401(k) Plan.

                                      -8-
<PAGE>   9

                  2.22     MATCHING ACCOUNT.

                  "Matching Account" means the account maintained on the books
of the Employer for the purpose of accounting for the Matching Amount and for
the amount of investment return credited thereto for each Participant pursuant
to Article V.

                  2.23     MATCHING AMOUNT.

                  "Matching Amount" means the Regular Matching Amounts and
Special Bonus Matching Amounts credited to a Participant's Matching Account
under Section 4.2.

                  2.24     PARTICIPANT.

                  "Participant" means any Eligible Employee who elects to
participate by filing a Participation Agreement or who is automatically enrolled
with respect to a Minimum Bonus Deferral Amount as provided in Section 3.2.

                  2.25     PARTICIPATION AGREEMENT.

                  "Participation Agreement" means the agreement filed by a
Participant, in the form prescribed by the Committee, pursuant to Section 3.2.

                  2.26     PLAN.

                  "Plan" means the Equitable Resources, Inc. Deferred
Compensation Plan, as amended from time to time.

                  2.27     PLAN YEAR.

                  "Plan Year" means a twelve-month period commencing January 1
and ending the following December 3 1.

                  2.28     REGULAR DEFERRAL AMOUNT.

                  "Regular Deferral Amount" means the amount of Compensation
deferred by a Participant under Section 4.1(a).

                  2.29     REGULAR MATCHING AMOUNT.

                  "Regular Matching Amount" means the amount credited to a
Participant's Company Matching Account under Section 4.2(a).

                  2.30     RETIREMENT.

                  "Retirement" means the termination of a Participant who has
reached age 65.

                  2.31     SELECTED AFFILIATE.

                  "Selected Affiliate" means (1) any company in an unbroken
chain of companies beginning with the Company if each of the companies other
than the last company in the chain owns or controls, directly or indirectly,
stock possessing not less than 50 percent of the total combined voting power of
all classes of stock in one of the other companies, or (2) any partnership or
joint venture in which one or more of such companies is a partner or venturer,
each of which shall be selected by the Committee.

                                      -9-
<PAGE>   10

                  2.32     SPECIAL BONUS DEFERRAL AMOUNT.

                  "Special Bonus Deferral Amount" means the sum of the Minimum
Bonus Deferral Amounts and the Discretionary Bonus Deferral Amounts deferred by
certain direct and indirect reports to the Chief Executive Officer of the
Company ("CEO") described in Section 4.1(b). "MINIMUM BONUS DEFERRAL AMOUNT"
shall refer to the 20% and 10%, as applicable, bonus deferrals described in
Section 4.1(b) which must be made by such direct and indirect reports to the
CEO. "DISCRETIONARY BONUS DEFERRAL AMOUNTS" shall refer to any additional bonus
deferrals made by such direct and indirect reports to the CEO in excess of the
Minimum Bonus Deferral Amount.

                  2.33     SPECIAL BONUS MATCHING AMOUNT.

                  "Special Bonus Matching Amount" means the amount credited to a
Participant's Matching Account under Section 4.2(b).

                  2.34     VALUATION DATE.

                  "Valuation Date" means a date on which the amount of a
Participant's Account is valued as provided in Article V. The Valuation Date
shall be the last day of each calendar quarter and any other date determined by
the Committee.

                                      -10-
<PAGE>   11

                                   ARTICLE III

                          ELIGIBILITY AND PARTICIPATION

                  3.1      ELIGIBILITY.

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

                  3.2      PARTICIPATION.

                  (a) Regular Deferrals. Except as otherwise provided in (b),
participation in the Plan shall be limited to Eligible Employees who elect to
participate in the Plan by filing a Participation Agreement with the Committee.
An Eligible Employee shall commence participation in the Plan upon the first day
of his or her first payroll period following the receipt of his or her
Participation Agreement by the Committee.

                  (b) Minimum Bonus Deferral Amounts. Notwithstanding (a), an
Eligible Employee who is required to defer a Minimum Bonus Deferral Amount into
the Plan under Section 4.1(b) shall automatically become a Participant in the
Plan regardless of whether the Participant files a Participation Agreement.

                  3.3      CHANGE IN PARTICIPATION STATUS.

                  (a) Regular Deferral Amounts. Except as otherwise provided in
Section 3.2(b) and (b), below, a Participant may elect to terminate his or her
participation in the Plan at any time by filing a written notice thereof with
the Committee. A termination of participation with respect to Regular Deferral
Amounts will become effective as of the beginning of the next payroll period in
the month following receipt of the termination election by the Committee and in
accordance with the Committee's prevailing administrative procedures.

                  (b) Special Bonus Deferral Amounts. A termination of
participation with respect to Discretionary Bonus Deferral Amounts will become
effective as of the start of the next Bonus measurement period. A Participant
shall not be permitted to terminate the deferral of Minimum Bonus Deferral
Amounts.

                  (c) Amounts credited to such Participant's Account with
respect to periods prior to the effective date of a termination described in (a)
or (b) shall continue to be payable pursuant to, receive investment credit on,
and otherwise be governed by, the terms of the Plan.

                  3.4      INELIGIBLE PARTICIPANT

                  Notwithstanding any other provisions of this Plan to the
contrary, if the Committee determines that any Participant may not qualify as a
"management or highly compensated employee" within the meaning of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), or regulations
thereunder, the Committee may determine, in its sole discretion, that such
Participant shall cease to be eligible to participate in this Plan. Upon such
determination, the Employer shall distribute (in cash and/or in kind, as
applicable) to the Participant an amount equal to the vested amount credited to
his Account as soon as administratively practicable. Upon such payment, no
benefit shall thereafter be payable under this Plan either to the Participant or
any Beneficiary, and all of the Participant' s elections as to the time and
manner of payment of his Account will be deemed to be canceled.

                                      -11-
<PAGE>   12

                                   ARTICLE IV

                            DEFERRAL OF COMPENSATION

                  4.1      DEFERRAL AMOUNTS.

                  (a) Regular Deferral Amount. Subject to paragraph (b), below,
with respect to each Plan Year, a Participant may elect to defer a specified
percentage of his or her Compensation as provided in Exhibit B. A Participant
may change the percentage of his or her Compensation to be deferred by filing a
new Regular Deferral Election with the Committee. Any such change shall be
effective as of the first day of the Plan Year immediately following the Plan
Year in which such Deferral Election is filed with the Committee.

                  (b) Special Bonus Deferral Amount. Notwithstanding paragraph
(a), above, a Participant who reports directly to the Company's Chief Executive
Officer is required to defer at least twenty percent (20%) of his or her Bonus
and a Participant who reports directly to an executive who reports directly to
the Company's Chief Executive Officer is required to defer at least ten percent
(10%) of his or her Bonus, into the Plan (the "Minimum Bonus Deferral Amount").

                  (c) A Participant may change the percentage of his or her
Compensation to be deferred by filing a new Deferral Election with the
Committee. Notwithstanding anything in the preceding sentence to the contrary, a
Participant required to make a Minimum Bonus Deferral Amount shall not be
permitted to elect to make a change in a Special Bonus Deferral Election below
the Minimum Bonus Deferral Amount. Any permitted changes in deferral elections
shall be effective as of the first day of the Plan Year immediately following
the Plan Year in which such Deferral Election is filed with the Committee

                  4.2      MATCHING AMOUNTS.

                  (a) Regular Matching Amount. Subject to paragraph (b), below,
if the Committee authorizes a Regular Matching Amount with respect to, and
preceding, any Plan Year(s), the Employer shall provide Regular Matching Amounts
under this Plan with respect to each Participant who is eligible to be allocated
matching contributions under the Savings Plan. The total Regular Matching
Amounts under this Plan on behalf of a Participant for each Plan Year shall not
exceed the difference between the matching percentage of the Compensation
deferred by a Participant under this Plan and of the Participant's pre-tax
elective deferrals for the Plan Year under the Savings Plan, less (ii) the
Employer matching contributions allocated to the Participant under the Savings
Plan for such Plan Year.

                  (b) Special Bonus Matching Amount. Notwithstanding paragraph
(a), above, a Participant who is required to defer a Minimum Bonus Deferral
Amount under Section 4.1(b) and who elects to defer a Discretionary Bonus
Deferral Amount shall be credited with a Special Bonus Matching Amount equal to
twenty-five one hundredths (.25) of one (1) share of the Common Stock of the
Company for every one (1) share of the Common Stock of the Company deemed to be
purchased under the Plan pursuant to Section 5.6 with the Discretionary Bonus
Deferral Amount. There shall be no limit on a Participant's Special Bonus
Matching Amount. Only Participants subject to the requirement to defer a Minimum
Bonus Deferral Amount shall be eligible to defer a Discretionary Bonus Deferral
Amount.

                  (c) Minimum Bonus Deferral Amounts shall not be credited with
any matching contributions under the Plan.

                                      -12-
<PAGE>   13

                  4.3      CREDITING OF DEFERRAL AMOUNTS AND MATCHING AMOUNTS.

                  Participant's Deferral Amounts shall be credited by the
Employer to the Participant's Deferral Account periodically, the frequency of
which will be determined by the Committee. To the extent that the Employer is
required to withhold any taxes or other amounts from a Participant's Deferral
Amounts pursuant to any state, federal or local law, such amounts shall be
withheld only from the Participant's Deferral Amounts before such amounts are
credited. The Matching Amounts under the Plan for each Participant shall be
credited by the Employer to the Participant's Matching Account periodically, the
frequency of which will be determined by the Committee.

                                      -13-
<PAGE>   14

                                    ARTICLE V

                                BENEFIT ACCOUNTS

                  5.1      VALUATION OF ACCOUNT.

                  As of each Valuation Date, a Participant's Account shall
consist of the balance of the Participant's Account as of the immediately
preceding Valuation Date, plus the Participant's Deferral Amounts and Matching
Amounts credited pursuant to Sections 4.1 and 4.2 since the immediately
preceding Valuation Date, plus or minus investment gain or loss credited as of
such Valuation Date pursuant to Section 5.2, minus the aggregate amount of
distributions, if any, made from such Account since the immediately preceding
Valuation Date.

                  5.2      CREDITING OF INVESTMENT RETURN.

                  As of each Valuation Date, each Participant's Deferral Account
and Matching Account shall be increased or decreased by the amount of investment
gain or loss earned since the immediately preceding Valuation Date. Investment
return shall be credited at the Investment Return Rate as of such Valuation Date
based on the average balance of the Participant's Deferral Account and Matching
Account, respectively, since the immediately preceding Valuation Date, but after
such Accounts have been adjusted for any contributions or distributions to be
credited or deducted for such period. Investment return for the period prior to
the first Valuation Date applicable to a Deferral Account or a Matching Account
shall be deemed earned ratably over such period. Until a Participant or his or
her Beneficiary receives his or her entire Account, the unpaid balance thereof
shall earn an investment return as provided in this Section 5.2.

                  5.3      STATEMENT OF ACCOUNTS.

                  The Committee shall provide to each Participant, within 30
days after the close of each calendar quarter, a statement setting forth the
balance of such Participant's Account as of the last day of the preceding
calendar quarter and showing all adjustments made thereto during such calendar
quarter.

                  5.4      VESTING OF AMOUNTS.

                  Except as provided in Sections 10.1 and 10.2, a Participant
shall be 100% vested in the amounts credited to his or her Account in the event
of a Change in Control. Prior to a Change in Control, amounts credited to a
Participant's Deferral Account or Matching Account shall vest in accordance with
the following paragraphs of this Section 5.4.

                  (a) Regular Deferral Amounts. A Participant shall be 100%
vested in the Regular Deferral Amounts credited to his or her Deferral Account
at all times.

                  (b) Special Bonus Deferral Amounts. The Minimum Bonus Deferral
Amount credited to a Participant's Deferral Account with respect to each Plan
Year shall vest in increments of fifty percent (50%); with the first 50% vesting
upon the completion of the first year of Credited Service following the Plan
Year to which the Minimum Bonus Deferral Amount relates and the remaining 50%
vesting upon the completion of the second year of Credited Service following
such Plan Year. Any nonvested portion of a Participant's Minimum Bonus Deferral
Amount shall be forfeited if the Participant voluntarily resigns from the
Company. A Participant shall be 100% vested in the Discretionary Bonus Deferral
Amounts credited to his or her Deferral Account at all times. Nonvested portions
of a Participant's Bonus Deferral Amount shall be paid to the Participant if the
Participant is involuntarily terminated by the Company.

                                      -14-
<PAGE>   15

                  (c) Regular Matching Amounts. A Participant's Regular Matching
Amounts shall vest in accordance with the vesting schedule for Company
Contributions under the Equitable 401(k) Plan.

                  (d) Special Bonus Matching Amounts. The Special Bonus Matching
Amounts credited to a Participant's Matching Account with respect to each Plan
Year shall vest in increments of thirty-three and one-third percent (33.3%);
with the first 33.3% vesting upon the completion of the first year of Credited
Service following the Plan Year to which the Special Bonus Matching Amount
relates and the two remaining portions vesting upon the completion of the second
and third years, respectively, of Credited Service following the Plan Year to
which the Special Bonus Matching Amount relates. Any nonvested portion of a
Participant's Special Bonus Matching Amount shall be forfeited if the
Participant terminates employment with the Company for any reason.

                  (e) Application of Forfeitures. Forfeitures under the Plan
shall be for the benefit of the Company and shall not be credited to other
Participants.

                  5.5      INVESTMENT OF REGULAR DEFERRAL AMOUNTS.

                  A Participant may direct that the portion of his or her
Deferral Account attributable to Regular Deferral Amounts under Section 4.1(a)
be deemed to be invested in one or more of the investment options listed in
Exhibit C, in increments of ten percent (10%) of the value of his or her Regular
Deferral Amount (a "New Money Election"). A Participant also may direct once
every month that Regular Deferral Amounts previously credited to his or her
Deferral Account and deemed to be invested in one or more of the investment
options listed in Exhibit C, be transferred in increments of ten percent (10%)
of the value of his or her Regular Deferral Amount between and among the then
available investment options listed in Exhibit C (a "Reallocation Election");
provided that a Participant may not reallocate Regular Deferral Amounts
previously credited to his or her Deferral Account and deemed to be invested in
the Equitable Resources Common Stock Fund. A New Money Election or a
Reallocation Election must be filed with the Committee in accordance with
uniform rules established by the Committee. A Reallocation Election shall not
change a Participant's existing New Money election.

                  The effective date of any New Money Election or Reallocation
Election shall be the date on which such election is received by the Committee
in accordance with uniform rules established by the Committee. The Company
reserves the right to refuse to honor any Participant direction related to
investments or withdrawals, including transfers among investment options, where
necessary or desirable to assure compliance with applicable law including U.S.
and other securities laws. However, the Company does not assume any
responsibility for compliance by officers or others with any such laws, and any
failure by the Company to delay or dishonor any such direction shall not be
deemed to increase the Company's legal exposure to the Participant or third
parties.

                  5.6      INVESTMENT OF SPECIAL BONUS DEFERRAL AMOUNTS AND
MATCHING AMOUNTS.

                  Notwithstanding anything in Section 5.5 to the contrary, a
Participant's Special Bonus Deferral Amounts under Section 4.1(b) and all
amounts credited to a Participant's Matching Account under Section 4.2 shall be
deemed to be invested in the Equitable Resources Common Stock Fund. A
Participant shall have no right to direct the investment of his Special Bonus
Deferral Amounts and the amounts to be credited to his Matching Account.

                                      -15-
<PAGE>   16

                                   ARTICLE VI

                               PAYMENT OF BENEFITS

                  6.1      PAYMENT OF DEFERRAL BENEFIT UPON DEATH, DISABILITY OR
RETIREMENT.

                  Upon the death, Disability, Early Retirement, or Retirement of
a Participant, the Employer shall pay to the Participant or his Beneficiary a
Deferral Benefit equal to the balance of his or her vested Account determined
pursuant to Article V, less any amounts previously distributed, based on his
written election pursuant to Section 6.6.

                  6.2      PAYMENT OF DEFERRAL BENEFIT UPON TERMINATION.

                  Upon the termination of service of the Participant as an
employee of the Employer and all Selected Affiliates for reasons other than
death, Disability, or Retirement, the Employer shall pay to the Participant a
Deferral Benefit in a lump sum equal to the balance of his or her vested Account
determined pursuant to Article V, less any amounts previously distributed, as
soon as administratively practical.

                  6.3      PAYMENTS TO BENEFICIARIES.

                  In the event of the Participant's death prior to his or her
receipt of all elected annual installments, his or her Beneficiary will receive
the remaining annual installments at such times as such installments would have
become distributable to the Participant.

                  6.4      IN-SERVICE DISTRIBUTION.

                  A Participant may elect to receive an in-service distribution
of a portion or all of his or her vested Deferral Account only, beginning at any
time not less than one year after the end of the Plan Year in which such
Compensation was deferred. A Participant's election for an in-service
distribution shall be filed annually in writing with the Committee at the same
time his or her Deferral Election is made. The Participant may elect to receive
such in-service distribution in a lump sum only, the amount of which will be the
lesser of the distribution election for that year or the Deferral Account
balance attributable to that year's deferral. Any benefits paid to the
Participant as an in-service distribution shall reduce the amount of Deferral
Benefit otherwise payable to the Participant under the Plan.

                  6.5      HARDSHIP WITHDRAWAL.

                  In the event that the Committee, upon the written request of a
Participant, determines, in its sole discretion, that the Participant has
suffered an unforeseeable financial emergency, the Company shall pay to the
Participant, as soon as practicable following such determination, an amount
necessary to meet the emergency (the "Hardship Withdrawal"), but not exceeding
the aggregate balance of such Participant's vested Deferral Account as of the
date of such payment. For purposes of this Section 6.5, an "unforeseeable
financial emergency" shall mean an event that the Committee determines to give
rise to an unexpected need for cash arising from an illness, casualty loss,
sudden financial reversal or other such unforeseeable occurrence. The amount of
a Hardship Withdrawal may not exceed the amount the Committee reasonably
determines to be necessary to meet such emergency needs (including taxes
incurred by reason of a taxable distribution). The amount of the Deferral
Benefit otherwise payable under the Plan to such Participant shall be adjusted
to reflect the early payment of the Hardship Withdrawal.

                                      -16-
<PAGE>   17

                  6.6      FORM OF PAYMENT.

                  The Deferral Benefit payable pursuant to Section 6.1 shall be
paid in one of the following forms, as elected by the Participant in his or her
Participation Agreement on file as of one (1) year and one (1) day prior to the
date of termination or death:

                  (a) Annual payments of a fixed amount which shall amortize the
vested Account balance as of the payment commencement date over a period not to
exceed ten (10) years (together, in the case of each annual payment, with
interest thereon credited after the payment commencement date pursuant to
Section 5.2).

                  (b) A lump sum.

                  In the event a Participant fails to make a distribution
election, his or her vested Account balance shall be distributed in a lump sum.
Notwithstanding the foregoing, that portion of a Participant's Account
attributable to Special Bonus Deferral Amounts and all Matching Amounts shall be
paid in Common Stock of the Company, with any fractional shares paid in cash in
a lump sum.

                  6.7      COMMENCEMENT OF PAYMENTS.

                  Commencement of payments under Section 6.1 of the Plan shall
begin within 60 days following receipt of written notice by the Committee of an
event which entitles a Participant (or a Beneficiary) to payments under the
Plan.

                  6.8      SMALL BENEFIT.

                  In the event the Committee determines that the balance of a
Participant's vested Account is less than $3,500 at the time of commencement of
payments, or the portion of the balance of the Participant's vested Account
payable to any Beneficiary is less than $3,500 at the time of commencement of
payments, the Committee may inform the Employer and the Employer, in its
discretion, may choose to pay the benefit in the form of a lump sum payment,
notwithstanding any provision of the Plan or a Participant election to the
contrary. Such lump sum payment shall be equal to the balance of the
Participants vested Account or the portion thereof payable to a Beneficiary.

                                      -17-
<PAGE>   18

                                   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 Beneficiary to whom payment under the
Plan shall be made in the event of his or her death prior to complete
distribution to the Participant of his or her Account. Any Beneficiary
designation shall be made in a written instrument provided by the Committee. All
Beneficiary designations must be filed with the Committee and shall be effective
only when received in writing by the Committee. In the event that a Beneficiary
form has not been filed, the Beneficiary to whom payment has been designated
under the Savings Plan shall be used.

                  7.2      CHANGE OF BENEFICIARY DESIGNATION.

                  Any Beneficiary designation may be changed by a Participant by
the filing of a new Beneficiary designation, which will cancel all Beneficiary
designations previously filed. The designation of a Beneficiary may be made or
changed at any time without the consent of any person.

                  7.3      NO DESIGNATION.

                  If a Participant fails to designate a Beneficiary as provided
above, or if all designated Beneficiaries predecease the Participant, then the
Participant's designated Beneficiary shall be deemed to be the Participant's
estate.

                  7.4      EFFECT OF PAYMENT.

                  Payment to a Participant's Beneficiary (or, upon the death of
a primary Beneficiary, to the contingent Beneficiary or, if none, to the
Participant's estate) shall completely discharge the Employer's obligations
under the Plan.

                                      -18-
<PAGE>   19

                                  ARTICLE VIII

                                 ADMINISTRATION

                  8.1      COMMITTEE.

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

                  8.2      INVESTMENTS.

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

                  8.3      AGENTS.

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

                  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 administration, interpretation
and application of the Plan shall be final and binding upon all persons having
any interest in the Plan.

                  8.5      INDEMNIFICATION OF COMMITTEE.

                  The Company shall indemnify and hold harmless the members of
the Committee and the Benefits Investment Committee and their duly appointed
agents under Section 8.3 against any and all claims, loss, damage, expense or
liability arising from any action or failure to act with respect to the Plan,
except in the case of gross negligence or willful misconduct by any such member
or agent of the Committee or Benefits Investment Committee.

                                      -19-
<PAGE>   20

                                   ARTICLE IX

                        AMENDMENT AND TERMINATION OF PLAN

                  9.1      AMENDMENT.

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

                  9.2      TERMINATION.

                  The Company, on behalf of itself and of each Selected
Affiliate, in its sole discretion, may terminate this Plan at any time and for
any reason whatsoever. Upon termination of the Plan, Participants shall be 100%
vested in all amounts credited to their Accounts. On and after Plan termination,
the Committee shall take those actions necessary to administer any Accounts
existing prior to the effective date of such termination; provided, however,
that a termination of the Plan shall not adversely affect the value of a
Participants Account, the crediting of investment return under Section 5.2 or
the timing or method of distribution of a Participant' s Account, without the
Participant's prior written consent.

                                      -20-
<PAGE>   21

                                    ARTICLE X

                                  MISCELLANEOUS

                  10.1     FUNDING.

                  Participants, their Beneficiaries, and their heirs, successors
and assigns, shall have no secured interest or claim in any property or assets
of the Employer. The Employer's obligation under the Plan shall be merely that
of an unfunded and unsecured promise of the Employer to pay money in the future.
Notwithstanding the foregoing, in the event of a Change in Control, the Company
shall create an irrevocable trust, or before such time the Company may create an
irrevocable or revocable trust, to hold funds to be used in payment of the
obligations of Employers under the Plan. In the event of a Change in Control or
prior thereto, the Employers shall fund such trust in an amount equal to not
less than the total value of the Participants' Accounts under the Plan as of the
Valuation Date immediately preceding the Change in Control, provided that any
funds contained therein shall remain liable for the claims of the respective
Employer's general creditors.

                  10.2     NONASSIGNABILITY.

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

                  As long as the Terminated Participant is alive, any benefits
affected by the termination shall be retained by the Employer and, in the
Committee's sole and absolute judgment, may be paid to or expended for the
benefit of the Terminated Participant, his or her spouse, his or her children or
any other person or persons in fact dependent upon him or her in such a manner
as the Committee shall deem proper. Upon the death of the Terminated
Participant, all benefits withheld from him or her and not paid to others in
accordance with the preceding sentence shall be disposed of according to the
provisions of the Plan that would apply if he or she died prior to the time that
all benefits to which he or she was entitled were paid to him or her.

                  10.3     LEGAL FEES AND EXPENSES.

                  It is the intent of the Company and each Selected Affiliate
that no Eligible Employee or former Eligible Employee be required to incur the
expenses associated with the enforcement of his or her rights under this Plan by
litigation or other legal action because the cost and expense thereof would
substantially detract from the benefits intended to be extended to an Eligible
Employee hereunder. Accordingly, if after a Change in Control it should appear
that the Employer has failed to comply with any of its obligations under this
Plan or in the event that the Employer or any other person takes any action to
declare this Plan void or unenforceable, or institutes any litigation designed
to deny, or to recover from, the Eligible Employee the benefits intended to be
provided to such Eligible Employee hereunder, the Employer irrevocably
authorizes such Eligible Employee from time to time to retain counsel of his or
her choice, at the

                                      -21-
<PAGE>   22

expense of the Employer as hereafter provided, to represent such Eligible
Employee in connection with the initiation or defense of any litigation or other
legal action, whether by or against the Employer or any director, officer,
stockholder or other person affiliated with the Employer in any jurisdiction.
Notwithstanding any existing or prior attorney-client relationship between the
Employer and such counsel, the Employer irrevocably consents to such Eligible
Employee's entering into an attorney-client relationship with such counsel, and
in that connection the Employer and such Eligible Employee agree that a
confidential relationship shall exist between such Eligible Employee and such
counsel, The Employer shall pay and be solely responsible for any and all
attorneys' and related fees and expenses incurred by such Eligible Employee as a
result of the Employer's failure to perform under this Plan or any provision
thereof; or as a result of the Employer or any person contesting the validity or
enforceability of this Plan or any provision thereof.

                  10.4     CAPTIONS.

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

                  10.5     GOVERNING LAW.

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

                  10.6     SUCCESSORS.

                  The provisions of the Plan shall bind and inure to the benefit
of the Company, its Selected 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 Selected Affiliate and successors of any such Company or other
business entity.

                  10.7     RIGHT TO CONTINUED SERVICE.

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

EXECUTED THIS 16TH  DAY OF MAY, 2000

                                 EQUITABLE RESOURCES INC.

                                 /s/ GREGORY R. SPENCER
                                 ---------------------------------
                                 BY: GREGORY R. SPENCER
                                     VICE PRESIDENT HUMAN RESOURCES AND
                                     ADMINISTRATION

                                      -22-
<PAGE>   23

                                    EXHIBIT A

RE: SECTION 3.1 - DESCRIPTION OF ELIGIBLE EMPLOYEES

Date: January 1, 1996.

THE COMMITTEE HAS DETERMINED THAT THE FOLLOWING NAMED INDIVIDUALS OR GROUPS OF
PERSONS OR DESCRIPTIONS OF THE COMPONENTS OF COMPENSATION OF AN INDIVIDUAL WHICH
WOULD QUALIFY INDIVIDUALS WHICH ARE ELIGIBLE TO PARTICIPATE IN THE PLAN AS
ELIGIBLE EMPLOYEES:

            Employees classified in Company salary grade 19 and above

                                      -23-
<PAGE>   24

                                    EXHIBIT B

RE: SECTION 4.1 - AMOUNT OF DEFERRAL

Dated: January 1, 1996

AS OF THE DATE ABOVE, AND EFFECTIVE UNTIL THIS EXHIBIT IS MODIFIED BY THE
COMMITTEE, THE TABLE BELOW INDICATES THE TYPES OF COMPENSATION WHICH ARE
ELIGIBLE FOR INCOME DEFERRAL AT THE ASSIGNED PERCENTAGES AS NOTED:

<TABLE>
<CAPTION>
---------------------------------------- -------------------------------------- --------------------------------------
         TYPE OF COMPENSATION                     MAXIMUM PERCENTAGE                      OTHER LIMITATIONS
                                                 THAT CAN BE DEFERRED
---------------------------------------- -------------------------------------- --------------------------------------
<S>                                      <C>                                    <C>
Base Salary                              N/A                                    Any amount over IRS limit
---------------------------------------- -------------------------------------- --------------------------------------
Bonus                                    100%                                   In increments of 10% or the entire
                                                                                amount of the Bonus awarded in
                                                                                excess of a stated dollar amount.
---------------------------------------- -------------------------------------- --------------------------------------
</TABLE>

                                      -24-
<PAGE>   25

                                    EXHIBIT C

RE: SECTION 2.21 - INVESTMENT RETURN RATE

The following are the investment options that are used in determining the
Investment Return Rate under the Plan as of August 1, 2000.

-------------------------------------------------------------------------------
                            Account Name
------------------------------------------------------------------------------
Equitable Resources Common Stock Fund
-------------------------------------------------------------------------------
Putnam International Growth Fund
-------------------------------------------------------------------------------
Putnam OTC & Emerging Growth Fund
-------------------------------------------------------------------------------
Putnam Voyager Fund
-------------------------------------------------------------------------------
Putnam Vista Fund
-------------------------------------------------------------------------------
The George Putnam Fund of Boston
-------------------------------------------------------------------------------
The Putnam Fund for Growth and Income
-------------------------------------------------------------------------------
Putnam Income Fund
-------------------------------------------------------------------------------
PIMCO Total Return Fund
-------------------------------------------------------------------------------
Putnam Asset Allocation: Growth
-------------------------------------------------------------------------------
Putnam Asset Allocation: Balanced
-------------------------------------------------------------------------------
Putnam Asset Allocation: Conservative
-------------------------------------------------------------------------------

                                      -25-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]