Document:

Exhibit 4.16

 

PROMISSORY NOTE

 

	
  Principal

  	
   

  	
  Loan
  Date

  	
   

  	
  Maturity

  	
   

  	
  Loan No.

  	
   

  	
  Call/Coll

  	
   

  	
  Account

  	
   

  	
  Officer

  	
   

  	
  Initials

  	
   

  
	
  $

  	
  700,000.00

  	
   

  	
  09-27-2004

  	
   

  	
  10-01-2005

  	
   

  	
  18

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
																	

 

References in the shaded area are for Lender’s use only and do not
limit the applicability of this document to any particular loan or item.

 

Any item above containing “***” has been omitted due to text length
limitations.

 

Borrower: Quality Products,lnc.

2222 South Third Street

Columbus, OH 43207

 

Llender: THE HUNTINGTON NATIONAL BANK

Columbus Commercial Banking

P. O. Box 341470 -NC1W25

Columbus, OH 43234-9909

 

Principal Amount: $700,000.00        Initial
Rate: 4.240%        Date of Note:
September 27, 2004

 

PROMISE TO PAY. Quality Products, Inc. (“Borrower”) promises to pay to
THE HUNTINGTON NATIONAL BANK (“Lender”), or order, In lawful money of the
United States of America, the principal amount of Seven Hundred Thousand &
00/100 Dollars ($700,000.00) or so much as may be outstanding, together with
Interest or the unpaid outstanding principal balance of each advance. Interest
shall be calculated from the date of each advance until repayment of each
advance.

 

PAYMENT. Borrower will pay this loan in one payment of all outstandlng
principal plus all accrued unpaid Interest on October 1, 2005. In addition,
Borrower will pay regular monthly payments of all accrued unpaid interest due
as of each payment date, beginning November 1, 2004, with all subsequent
Interest payments to be due on the same day of each month after that. Unless
otherwise agreed or required by applicable law, payments will be applied first
to any accrued unpaid Interest; then to principal; then to any unpaid
collection costs; and then to any late charges. 
The annual Interest rate for this note is computed on a 365/360 basis;
that is, by applying the ratio of the annual Interest rate over a year of 360
days, multiplied by the outstanding principal balance, multiplied by the actual
number of days the principal balance is outstanding.  Borrower will pay Lender at Lender’s address;
shown above or at such other place as Lender may designate in writing.

 

VARIABLE INTEREST RATE. The interest rate on this Note is subject to
change from time to time based on changes in an independent index which is the
Daily Fluctuating LlBO Rate.  As used
herein, Daily Fluctuating LlBO Rate shall mean the rate obtained by dividing:
(1) the actual or estimated per annum rate, or the arithmetic mean of the per
annum rates, of interest for deposits in U.S. dollars for one (1) month
periods, as offered and determined by Lender in its sole discretion based upon
information which appears on page LIBOR01, captioned British Bankers Assoc.
Interest Rate Settlement Rates, of the Reuters America Network, a service of
Reuters America Inc. (or such other page that may replace that page on that
service for the purpose of displaying LIBO rates; or, if such service ceases to
be available or ceases to be used by Lender, such other reasonably comparable
money rate service as lender may select) or upon information obtained from any other
reasonable procedure, on each date the Daily Fluctuating LIBO Rate is
determined; by (2) an amount equal to one minus the stated maximum rate
(expressed as a decimal), If any, of all reserve requirements (including,
without limitation, any marginal, emergency, supplemental, special or other
reserves) that is specified on each date the Daily Fluctuating LIBO Rate is
determined by the Board of Governors of the Federal Reserve System (or any
successor agency thereto) for determining the maximum reserve requirement with
respect to eurocurrency funding (currently referred to as “Eurocurrency
liabilities” in Regulation D of such Board) maintained by a member bank of such
System,

 

 

or any other regulations of any governmental authority having
jurisdiction with respect thereto, all as conclusively determined by Lender,
absent manifest error, such result to be rounded up, if necessary, to the
nearest whole multiple of one-sixteenth of one percent (1/16 of 1.0%) per
annum. Subject to any maximum or minimum interest rate limitation specified
herein or by applicable law, the interest rate shall change automatically
without notice to Borrower immediately on each day with each change in the
Daily Fluctuating LIBO Rate or the reserve requirement, as applicable, with any
change thereto effective as of the opening of business on the day of the change
(the “Index”). The Index is not necessarily the lowest rate charged by lender
on its loans.  If the Index becomes
unavailable during the term of this loan, Lender may designate a substitute
index after notice to Borrower.  Lender
will tell Borrower the current Index rate upon Borrower’s request. The interest
rate change will not occur more often than each day (the “rate change event”).  Borrower understands that Lender may make
loans based on other rates as well. The initial rate Is based on the Index as
of September 24, 2004 which was 1.84% per annum.  Initially, the interest rate to be applied to
the unpaid principal balance of the Note is 4.240%.  After the first rate change event, the
interest rate to be applied to the unpaid principal balance of this note will
be at a rate of 2.400 percentage points over the Index.  NOTICE: under no circumstances will the
interest rate on this Note be more than the maximum rate allowed by applicable
law.

 

PREPAYMENT. Borrower may pay without penalty all or a portion of the
amount owed earlier than it is due. Early payments will not, unless agreed to
by lender In writing, relieve Borrower of Borrower’s obligation to continue to
make payments of accrued unpaid interest. Rather, early payments will reduce
the principal balance due.  Borrower
agrees not to send lender payments marked “paid in full”, “without recourse”,
or similar language. If Borrower sends such payment, lender may accept it without
losing any of lender’s rights under this Note, and Borrower will remain
obligated to pay any further amount owed to Lender. All written communications
concerning disputed amounts, including any check or other payment instrument
that indicates that the payment constitutes “payment in full” of the amount
owed or that is tendered with other conditions or limitations or as full
satisfaction of a disputed amount must be mailed or delivered to: The
Huntington National Bank, Commercial Customer Support, 2361 Morse Road NC1W26
Columbus, OH 43229.

 

LATE CHARGE. If a payment is 11 days or more late, Borrower will be
charged 5.000% of the regularly scheduled payment.

 

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon
final maturity, Lender, at its option, may, if permitted under applicable law,
Increase the variable interest rate in this Note to 5.400 percentage points
over the Index. The interest rate will not exceed the maximum rate permitted by
applicable law.

 

DEFAULT. Each of the following shall constitute an event of default (“Event
of Default”) under this Note:

 

Payment Default. Borrower fails to make any payment when due under this
Note.

 

Other Defaults. Borrower fails to comply with or to perform any other
term, obligation, covenant or condition contained in this Note or in any of the
related documents or to comply with or to perform any term, obligation,
covenant or condition contained in any other agreement between Lender and
Borrower.

 

False Statements. Any warranty, representation or statement made or
furnished to Lender by Borrower or on Borrower’s behalf under this Note or the
related documents is false or misleading in any material respect, either now or
at the time made or furnished or becomes false or misleading at any time
thereafter.

 

Insolvency. The dissolution or termination of Borrower’s existence as a
going business, the insolvency of Borrower, the appointment of a receiver for
any part of Borrower’s property, any assignment for the benefit of creditors,
any type of creditor workout, or the commencement of any proceeding under any
bankruptcy or insolvency laws by or against Borrower.

 

Creditor or Forfeiture Proceedings. 
Commencement of foreclosure or forfeiture proceedings, whether by
judicial proceeding, self-help, repossession or any other method by any
creditor of Borrower or by any governmental agency against any collateral
securing the loan.  This includes a
garnishment of Borrower’s

 

 

accounts, including deposit accounts, with Lender. However, this Event
of Default shall not apply if there is a good faith dispute by Borrower as to
the validity or reasonableness of the claim which is the basis of the creditor
or forfeiture proceeding and if Borrower gives Lender written notice of the
creditor or forfeiture proceeding and deposits with lender monies or a surety
bond for the creditor or forfeiture proceeding, in an amount determined by
Lender, in its sole discretion, as being an adequate reserve or bond for the
dispute.

 

Events Affecting Guarantor.  Any
of the preceding events occurs with respect to any Guarantor of any of the
indebtedness or any Guarantor dies or becomes incompetent, or revokes or
disputes the validity of, or liability under, any guaranty of the indebtedness
evidenced by this Note.

 

Change In Ownership.  Any change
in ownership of twenty-five percent (25%) or more of the common stock of
Borrower.

 

Adverse Change.  A material
adverse change occurs in Borrower’s financial condition, or Lender believes the
prospect of payment or performance of this Note is impaired.

 

Insecurity.  Lender in good faith
believes itself insecure.

 

LENDER’S RIGHTS.  Upon default,
Lender may declare the entire unpaid principal balance on this Note and all
accrued unpaid interest immediately due, and then Borrower will pay that
amount.

 

ATTORNEYS’ FEES; EXPENSES. 
Lender may hire or pay someone else to help collect this Note if
Borrower does not pay.  Borrower will pay
Lender that amount.  This includes,
subject to any limits under applicable law, Lender’s attorney fees and Lender’s
legal expenses, whether or not there is a lawsuit, including attorneys’ fees,
expenses for bankruptcy proceedings (including efforts to modify or vacate any
automatic stay or injunction), and appeals. 
If not prohibited by applicable law, Borrower also will pay any court
costs in addition to all other sums provided by law.

 

JURY WAIVER.  Lender and Borrower
hereby waive the right to any jury trial in any action, proceeding, or
counterclaim brought by either Lender or Borrower against the other.

 

GOVERNING LAW. This Note will be governed by, construed and enforced in
accordance with federal law and the laws of the State of Ohio.  This Note has been accepted by Lender in the
State of Ohio.

 

CONFESSION OF JUDGMENT. Borrower hereby irrevocably authorizes and
empowers any attorney-at-law, including an attorney hired by Lender, to appear
in any court of record and to confess judgment against Borrower for the unpaid
amount of this Note as evidenced by an affidavit signed by an officer of Lender
setting forth the amount then due, attorneys’ fees plus costs of suit, and to
release all errors, and waive all rights of appeal. If a copy of this Note,
verified by an affidavit, shall have been filed in the proceeding, it will not
be necessary to file the original as a warrant of attorney. Borrower waives the
right to any stay of execution and the benefit of all exemption laws now or
hereafter in effect. No single exercise of the foregoing warrant and power to
confess judgment will be deemed to exhaust the power, whether or not any such
exercise shall be held by any court to be invalid, voidable, or void; but the
power will continue undiminished and may be exercised from time to time as
Lender may elect until all amounts owing on this Note have been paid in full.
Borrower waives any conflict of interest that an attorney hired by Lender may
have in acting on behalf of Borrower in confessing judgment against Borrower
while such attorney is retained by Lender. Borrower expressly consents to such
attorney acting for Borrower in confessing judgment.

 

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $15.00 if
Borrower makes a payment on Borrower’s loan and the check or preauthorized
charge with which Borrower pays is later dishonored.

 

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender
reserves a right of setoff in all Borrower’s accounts with Lender (whether
checking, savings, or some other account). This includes all accounts Borrower
holds jointly with someone else and all accounts Borrower may open in the future.

 

 

However, this does not include any IRA or Keogh accounts, or any trust
accounts for which setoff would be prohibited by law. Borrower authorizes
Lender, to the extent permitted by applicable law, to charge or setoff all sums
owing on the indebtedness against any and all such accounts.

 

LINE OF CREDIT. This Note evidences a revolving line of credit.
Advances under this Note, as well as directions for payment from Borrower’s
accounts, may be requested orally or in writing by Borrower or by an authorized
person. Lender may, but need not, require that all oral requests be confirmed
in writing. Borrower agrees to be liable for all sums either: (A) advanced in
accordance with the instructions of an authorized person or (B) credited to any
of Borrower’s accounts with Lender. The unpaid principal balance owing on this
Note at any time may be evidenced by endorsements on this Note or by Lender’s
internal records, including daily computer print-outs. Lender will have no
obligation to advance funds under this Note if: (A) Borrower or any guarantor
is in default under the terms of this Note or any agreement that Borrower or
any guarantor has with Lender, including any agreement made in connection with
the signing of this Note; (B) Borrower or any guarantor ceases doing business
or is insolvent; (C) any guarantor seeks, claims or otherwise attempts to
limit, modify or revoke such guarantor’s guarantee of this Note or any other
loan with Lender; (0) Borrower has applied funds provided pursuant to this Note
for purposes other than those authorized by Lender; or (E) Lender in good faith
believes itself insecure.

 

FINANCIAL STATEMENTS. Borrower agrees to furnish from time to time on
the request of the Lender true and complete financial statements and such other
information as the Lender may reasonably require.

 

PROCESSING FEE. Borrower shall pay to Lender on the date of this Note a
processing fee in the amount of $0.00. Lender and Borrower agree that the fee
shall be fully earned by Lender on the date of this Note.

 

SPECIAL LIBO RATE PROVISION. In the event that Lender reasonably
determines that by reason of (a) any change arising after the date of this Note
affecting the interbank eurocurrency market or affecting the position of Lender
with respect to such market, adequate and fair means do not exist for
ascertaining the applicable interest rates by reference to which the Daily
Fluctuating LIBO Rate then being determined is to be fixed, (b) any change
arising after the date of this Note in any applicable law or governmental rule,
regulation or order (or any interpretation thereof, including the introduction
of any new law or governmental rule, regulation or order), or (c) any other
circumstance affecting Lender or the interbank eurocurrency market (such as,
but not limited to, official reserve requirements required by Regulation D of
the Board of Governors of the Federal Reserve System), the Daily Fluctuating
LIBO Rate plus the applicable spread shall not represent the effective pricing
to Lender of accruing interest based upon the Daily Fluctuating LIBO Rate,
then, and in any such event, the accrual of interest hereunder based upon the Daily
Fluctuating LlBO Rate shall be suspended until Lender shall notify Borrower
that the circumstances causing such suspension no longer exist and beginning on
the date of such suspension interest shall accrue hereunder at a variable rate
of interest per annum, which shall change in the manner set forth below, equal
to         percentage points (which shall be
0.00 percentage points, unless completed) in excess of the Prime Commercial
Rate (as hereinafter defined).

 

In the event that on any date Lender shall have reasonably determined
that accruing interest hereunder based upon the Daily Fluctuating LIBO Rate has
become unlawful by compliance by Lender in good faith with any law,
governmental rule, regulation or order, then, and in any such event, Lender
shall promptly give notice thereof to Borrower. In such case, when required by
law, interest shall accrue hereunder at a variable rate of interest per annum,
which shall change in the manner set forth below, equal to         
percentage points (which shall be 0.00 percentage points, unless completed) in
excess of the Prime Commercial Rate.

 

As used herein, Prime Commercial Rate shall mean the rate established
by Lender from time to time based on its consideration of economic, money
market, business and competitive factors, and it is not necessarily Lender’s
most favored rate. Subject to any maximum or minimum interest rate limitation
specified herein or by applicable law, any variable rate of interest on the
obligation evidenced hereby based upon the Prime Commercial Rate shall change
automatically without notice to Borrower immediately with each change in the
Prime Commercial Rate with any change thereto effective as of the opening of
business on the day of

 

 

the change. If during any period of time while interest is accruing
hereunder based upon the Prime Commercial Rate the obligation evidenced by this
Note is not paid at maturity, whether maturity occurs by lapse of time, demand,
acceleration or otherwise, the unpaid principal balance and any unpaid interest
thereon shall, thereafter until paid, bear interest at a rate equal to          
percentage points (which shall be 0.00 percentage points, unless completed) in
excess of the rate indicated in the immediately preceding two paragraphs.

 

If, due to (a) the introduction of or any change in or in the
interpretation of any law or regulation, (b) the compliance with any guideline
or request from any central bank or other public authority (whether or not
having the force of law), or (c) the failure of Borrower to pay any amount when
required by the terms of this Note, there shall be any loss or increase in the
cost to Lender of accruing interest hereunder based upon the Daily Fluctuating
LIBO Rate, then Borrower agrees that Borrower shall, from time to time, upon
demand by Lender, pay to Lender additional amounts sufficient to compensate
Lender for such loss or increased cost. A certificate as to the amount of such
loss or increase cost, submitted to Borrower by Lender, shall be conclusive
evidence, absent manifest error, of the correctness of such amount.

 

IMPORTANT INFORMATION ABOUT PROCEDURES REQUIRED BY THE USA PATRIOT ACT.
To help the government fight the funding of terrorism and money laundering
activities, Federal law requires all financial institutions to obtain, verify,
and record information that identifies each entity or person who opens an
account or establishes a relationship with the Lender.

 

What this means: When an entity or person opens an account or
establishes a relationship with the Lender, the Lender may ask for the name,
address, date of birth, and other information that will allow the Lender to
identify the entity or person who opens an account or establishes a
relationship with the Lender. The Lender may also ask to see identifying
documents for the entity or person.

 

PRIOR NOTE. This Note is given in renewal and replacement of a certain
Promissory Note dated March 18, 2004, in the original principal amount of
$200,000.00 executed and delivered by the Borrower to the Lender.

 

PRIOR TO SIGNING THIS NOTE. BORROWER READ AND UNDERSTOOD ALL THE
PROVISIONS OF THIS NOTE. INCLUDING THE VARIABLE INTEREST RATE PROVISIONS.
BORROWER AGREES TO THE TERMS OF THE NOTE.

 

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY
NOTE.

 

NOTICE: FOR THIS NOTICE “YOU” MEANS THE BORROWER AND “CREDITOR” AND
“HIS” MEANS LENDER.

 

WARNING – BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND
COURT TRIAL.  IF YOU DO NOT PAY ON TIME A
COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE
POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU
MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE
ON HIS PART TO COMPLY WITH THE AGREEMENT, OR ANY OTHER CAUSE.

 

BORROWER:

 

	
  QUALITY PRODUCTS, INC

  
	
   

  
	
  By:

  	
  /s/ Richard A. Drexler

  	
   

  
	
   

  	
  Richard A. Drexler, Chief Executive Officer of

  
	
   

  	
  Quality Products, Inc.Exhibit 10.1

 

Equitable Resources, Inc.

 

 

2005 EMPLOYEE DEFERRED COMPENSATION PLAN

 

 

EQUITABLE RESOURCES, INC.

2005 EMPLOYEE DEFERRED
COMPENSATION PLAN

 

Table of Contents

 

	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  1.1

  	
  STATEMENT OF PURPOSE

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  
	
  DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  2.1

  	
  ACCOUNT.

  	
   

  
	
  2.2

  	
  BASE
  SALARY.

  	
   

  
	
  2.3

  	
  BENEFICIARY.

  	
   

  
	
  2.4

  	
  BOARD.

  	
   

  
	
  2.5

  	
  BONUS.

  	
   

  
	
  2.6

  	
  CHANGE IN CONTROL.

  	
   

  
	
  2.7

  	
  CODE.

  	
   

  
	
  2.8

  	
  COMMITTEE.

  	
   

  
	
  2.9

  	
  COMPANY.

  	
   

  
	
  2.10

  	
  COMPENSATION.

  	
   

  
	
  2.11

  	
  CREDITED SERVICE.

  	
   

  
	
  2.12

  	
  DEFERRAL ACCOUNT.

  	
   

  
	
  2.13

  	
  DEFERRAL AMOUNT.

  	
   

  
	
  2.14

  	
  DEFERRAL BENEFIT.

  	
   

  
	
  2.15

  	
  DEFERRAL ELECTION.

  	
   

  
	
  2.16

  	
  DISABILITY.

  	
   

  
	
  2.17

  	
  EARLY RETIREMENT.

  	
   

  
	
  2.18

  	
  ELIGIBLE EMPLOYEE.

  	
   

  
	
  2.19

  	
  ELECTIVE DEFERRAL AMOUNT.

  	
   

  
	
  2.20

  	
  EMPLOYER.

  	
   

  
	
  2.21

  	
  HARDSHIP WITHDRAWAL.

  	
   

  
	
  2.22

  	
  INVESTMENT RETURN RATE.

  	
   

  
	
  2.23

  	
  MATCHING ACCOUNT.

  	
   

  
	
  2.24

  	
  MATCHING AMOUNT.

  	
   

  
	
  2.25

  	
  OTHER
  INCOME.

  	
   

  
	
  2.26

  	
  PARTICIPANT.

  	
   

  
	
  2.27

  	
  PARTICIPATION AGREEMENT.

  	
   

  
	
  2.28

  	
  2005
  PLAN.

  	
   

  
	
  2.29

  	
  2005 PLAN YEAR.

  	
   

  
	
  2.30

  	
  REGULAR DEFERRAL AMOUNT.

  	
   

  
	
  2.31

  	
  REQUIRED DEFERRAL AMOUNT.

  	
   

  
	
  2.32

  	
  RETIREMENT.

  	
   

  
	
  2.33

  	
  SELECTED AFFILIATE.

  	
   

  
	
  2.34

  	
  TOTAL DESIRED MATCH.

  	
   

  
	
  2.35

  	
  VALUATION DATE.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  
	
  ELIGIBILITY AND
  PARTICIPATION

  	
   

  
	
   

  	
   

  
	
  3.1

  	
  ELIGIBILITY.

  	
   

  
	
  3.2

  	
  PARTICIPATION.

  	
   

  
	
  3.3

  	
  CHANGE IN PARTICIPATION
  STATUS.

  	
   

  
	
  3.4

  	
  INELIGIBLE PARTICIPANT

  	
   

  

 

i

 

	
  ARTICLE IV

  	
   

  
	
   

  	
   

  
	
  DEFERRAL OF COMPENSATION

  	
   

  
	
   

  	
   

  
	
  4.1

  	
  DEFERRAL AMOUNTS.

  	
   

  
	
  4.2

  	
  MATCHING AMOUNT.

  	
   

  
	
  4.3

  	
  CREDITING
  OF DEFERRAL AMOUNTS AND MATCHING AMOUNTS.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
   

  	
   

  
	
  BENEFIT
  ACCOUNTS

  	
   

  
	
   

  	
   

  
	
  5.1

  	
  VALUATION OF ACCOUNT.

  	
   

  
	
  5.2

  	
  CREDITING OF INVESTMENT
  RETURN.

  	
   

  
	
  5.3

  	
  STATEMENT OF ACCOUNTS.

  	
   

  
	
  5.4

  	
  VESTING OF AMOUNTS.

  	
   

  
	
  5.5

  	
  INVESTMENT
  OF REGULAR, ELECTIVE AND REQUIRED DEFERRAL AMOUNTS.

  	
   

  
	
  5.6

  	
  INVESTMENT OF MATCHING
  AMOUNTS.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  
	
  PAYMENT
  OF BENEFITS

  	
   

  
	
   

  	
   

  
	
  6.1

  	
  PAYMENT OF DEFERRAL
  BENEFITS.

  	
   

  
	
  6.2

  	
  PAYMENT
  OF DEFERRAL BENEFIT UPON TERMINATION.

  	
   

  
	
  6.3

  	
  PAYMENTS
  TO BENEFICIARIES UPON DEATH OF PARTICIPANT.

  	
   

  
	
  6.4

  	
  HARDSHIP WITHDRAWAL.

  	
   

  
	
  6.5

  	
  FORM OF PAYMENT.

  	
   

  
	
  6.6

  	
  COMMENCEMENT OF PAYMENTS.

  	
   

  
	
  6.7

  	
  LIMITED ACCOUNT
  SIZE; LUMP SUM PAYMENT.

  	
   

  
	
  6.8

  	
  LIMITATION ON
  DISTRIBUTIONS.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
   

  	
   

  
	
  BENEFICIARY DESIGNATION

  	
   

  
	
   

  	
   

  
	
  7.1

  	
  BENEFICIARY DESIGNATION.

  	
   

  
	
  7.2

  	
  CHANGE OF
  BENEFICIARY DESIGNATION.

  	
   

  
	
  7.3

  	
  NO DESIGNATION.

  	
   

  
	
  7.4

  	
  EFFECT OF PAYMENT.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
   

  	
   

  
	
  ADMINISTRATION

  	
   

  
	
   

  	
   

  
	
  8.1

  	
  COMMITTEE.

  	
   

  
	
  8.2

  	
  INVESTMENTS.

  	
   

  
	
  8.3

  	
  AGENTS.

  	
   

  
	
  8.4

  	
  BINDING EFFECT OF
  DECISIONS.

  	
   

  
	
  8.5

  	
  INDEMNIFICATION OF
  COMMITTEE.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  
	
   

  	
   

  
	
  AMENDMENT AND
  TERMINATION OF 2005 PLAN

  	
   

  
	
   

  	
   

  
	
  9.1

  	
  AMENDMENT.

  	
   

  
	
  9.2

  	
  TERMINATION.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  
	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  10.1

  	
  FUNDING.

  	
   

  
	
  10.2

  	
  NONASSIGNABILITY.

  	
   

  
	
  10.3

  	
  LEGAL FEES AND EXPENSES.

  	
   

  
	
  10.4

  	
  NO ACCELERATION OF
  BENEFITS.

  	
   

  

 

ii

 

	
  10.5

  	
  CAPTIONS.

  	
   

  
	
  10.6

  	
  GOVERNING LAW.

  	
   

  
	
  10.7

  	
  SUCCESSORS.

  	
   

  
	
  10.8

  	
  NO RIGHT TO CONTINUED
  SERVICE.

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
   

  
	
   

  	
   

  
	
  EXHIBIT B

  	
   

  
	
   

  	
   

  
	
  EXHIBIT C

  	
   

  

 

iii

 

ARTICLE I

 

1.1                               Statement of Purpose

 

This is the Equitable Resources, Inc. 2005 Employee Deferred Compensation
Plan (the “2005 Plan”) made in the form of this 2005 Plan and in related
agreements between the Employer and certain management or highly compensated
employees.  The purpose of the 2005 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 2005 Plan will assist in attracting and retaining qualified
individuals to serve as officers and managers of the Employer.

 

1

 

ARTICLE
II

 

DEFINITIONS

 

When used in this
2005 Plan and initially capitalized, the following words and phrases shall have
the meanings indicated:

 

2.1                               Account.

 

“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 2005 Plan or 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 2005 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 2005 Plan or 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

 

2

 

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 February 25, 2004) 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 nominated by 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, as then in effect.

 

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 and Other
Income that each Participant elects or is required to defer under the 2005 Plan
and for the amount of investment return credited thereto for each Participant
pursuant to Article V.

 

3

 

2.13                        Deferral Amount.

 

“Deferral Amount” means the Regular Deferral Amounts, Elective Deferral
Amounts and Required 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 or Other Income pursuant to Article IV.  “Regular Deferral Election” shall mean the
written election made by a Participant to defer Compensation pursuant to
Section 4.1(a).  “Other Income Deferral
Election” shall mean the written election made by a Participant to defer Other
Income pursuant to Section 4.1(b).

 

2.16                        Disability.

 

“Disability” means a Participant is “disabled” as defined in
Section 409A(a)(2)(C) of the Code.

 

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
2005 Plan.

 

2.19                        Elective Deferral Amount.

 

“Elective Deferral
Amount” means the amount of Other Income deferred by a Participant under
Section 4.1(b).

 

2.20                        Employer.

 

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

 

2.21                        Hardship Withdrawal.

 

“Hardship Withdrawal” has the meaning set forth in Section 6.4.

 

2.22                        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”);

 

4

 

(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.

 

2.23                        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.

 

2.24                        Matching Amount.

 

“Matching Amount”
means the Matching Amounts credited to a Participant’s Matching Account under
Section 4.2.

 

2.25                        Other Income.

 

“Other Income”
means cash awards, excluding Compensation, paid by the Employer to a
Participant and awards of restricted stock to a Participant pursuant to another
plan of the Company.

 

2.26                        Participant.

 

“Participant” means any Eligible Employee who elects to participate by
filing a Participation Agreement or who is automatically enrolled with respect
to a Required Deferral.

 

2.27                        Participation Agreement.

 

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

 

2.28                        2005 Plan.

 

“2005 Plan” means the Equitable Resources, Inc. 2005 Deferred
Compensation Plan, as amended from time to time.

 

2.29                        2005 Plan Year.

 

“2005 Plan Year” means the twelve-month period commencing January 1, 2005
and ending December 31, 2005.

 

2.30                        Regular Deferral Amount.

 

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

 

5

 

2.31                        Required Deferral Amount.

 

“Required Deferral Amount” means the amount, other than Compensation,
automatically credited to a Participant’s Deferral Account pursuant to the
terms of a special benefit or bonus plan (other than a plan listed on Exhibit
B).

 

2.32                        Retirement.

 

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

 

2.33                        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.

 

2.34                        Total Desired Match.

 

“Total Desired Match” has the meaning set forth in Section 4.2(a).

 

2.35                        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.

 

6

 

ARTICLE
III

 

ELIGIBILITY AND PARTICIPATION

 

3.1                               Eligibility.

 

Eligibility to participate in the 2005 Plan is limited to Eligible
Employees.  From time to time, and
subject to Section 3.4, the Committee shall prepare, and attach to the 2005
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. 
Participation in the 2005 Plan shall be limited to Eligible Employees
who elect to participate in the 2005 Plan by filing a Participation Agreement
with the Committee.  An Eligible Employee
shall commence participation in the 2005 Plan upon the first day of the 2005
Plan Year, following the receipt of his or her Participation Agreement by the
Committee in the preceding calendar year or within 30 days of becoming a
Participant if such date occurs after the commencement of the 2005 Plan Year.

 

(b)                                 Required Deferrals. 
Notwithstanding (a), an Eligible Employee who is required to defer a
Required Deferral Amount into the 2005 Plan under Section 4.1(c) shall
automatically become a Participant in the 2005 Plan regardless of whether the
Participant files a Participation Agreement.

 

3.3                               Change in Participation Status.

 

(a)                                  Regular Deferral and Elective Deferral Amounts.  A
Participant may not terminate his or her participation in the 2005 Plan during
the 2005 Plan Year.

 

(b)                                 Required Deferral Amounts.  A
Participant shall only be permitted to terminate the deferral of Required
Deferral Amounts in accordance with the provisions of the governing employee
benefit or bonus plan under which the payment was made and, until paid to the
Participant, such amounts shall remain in deferred status under the 2005 Plan
or, if applicable, any successor plan.

 

(c)                                  Amounts Credited.  Amounts
credited to a Participant’s Account under the 2005 Plan shall continue to be
payable pursuant to, receive investment credit on, and otherwise be governed
by, the terms of the 2005 Plan.

 

3.4                               Ineligible Participant

 

Notwithstanding any other provisions of this 2005 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 2005 Plan.

 

7

 

ARTICLE
IV

 

DEFERRAL OF COMPENSATION

 

4.1                               Deferral Amounts.

 

(a)                                  Regular Deferral Amount.  With
respect to the 2005 Plan Year, a Participant may elect to defer a specified
percentage of his or her Compensation as provided in Exhibit B by filing a
deferral election prior to the commencement of the 2005 Plan Year or, in the
case of the first year in which a Participant becomes eligible to participate
after commencement of the 2005 Plan Year, within 30 days after initial
eligibility.  A Participant may not
change the percentage of his or her Compensation to be deferred during the 2005
Plan Year.

 

(b)                                 Elective Deferral Amount.  A
Participant may elect to defer a specified percentage or designated item of
Other Income to the extent such income is attributable to services performed by
the Participant after the election becomes effective, and the deferral election
with respect to such income is filed prior to commencement of the 2005 Plan
Year or, in the case of the first year in which a Participant becomes eligible
to participate after commencement of the 2005 Plan Year, within 30 days
after initial eligibility.  In the case
of an election with respect to Other Income granted in the form of restricted
property or other property subject to any vesting criteria, the election must
also be made prior to the award of such property, subject however to such
flexibility as may be provided in regulations under Section 409A of the
Code.  A Participant may not change the
percentage or designated items of his or her Other Income to be deferred during
the 2005 Plan Year.

 

(c)                                  Required Deferral Amount.  A
Participant may be entitled to receive an award, other than Compensation, under
a special benefit or bonus plan (other than a plan listed on Exhibit B), the
terms of which require deferral of some or all of the award into his or her
Deferral Account until a date specified in the underlying award agreement, and
which date shall be deemed to be incorporated by reference herein.  Notwithstanding anything herein to the
contrary, a Participant required to defer a Required Deferral Amount shall not
be permitted to elect to make a change in the required deferral, except as
otherwise permitted by the terms of the special benefit or bonus plan and Code
Section 409A and the regulations thereunder.

 

4.2                               Matching Amount.

 

(a)                                  Matching Amount.  The Employer shall provide
Matching Amounts under this 2005 Plan with respect to each Participant who is
eligible to be allocated matching contributions under the Equitable 401(k)
Plan.  The total Matching Amounts under
this 2005 Plan on behalf of a Participant for the 2005 Plan Year shall not
exceed the difference between the Total Desired Match and the actual match
under the Equitable 401(k) Plan.  The “Total
Desired Match” is the match which would be credited to the Participant under
the Equitable 401(k) Plan based upon such Participant’s deferral election,
absent the limitations of Sections 402(g), 401(a)(17), and 415 of the
Code.  Except as expressly provided
herein, the terms and conditions of any Matching Amount provided under this
2005 Plan shall be the same as provided in the Equitable 401(k) Plan.  Notwithstanding anything to the contrary
provided herein, (i) no Participant may receive a Matching Amount payable
in shares of the Common Stock of the Company in excess of 25% of the
Participant’s cash compensation and (ii) no Matching Amounts shall be
payable hereunder in shares of the Common Stock of the Company unless the
Participants in the 2005 Plan include substantially all of those employees of
the Company whose compensation exceeds the amount set forth in
Section 401(a)(17) of the Code, or any successor provision.

 

(b)                                 Neither Elective Deferral Amounts nor Required
Deferral Amounts shall be credited with any matching contributions under the
2005 Plan.

 

8

 

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 income other than the Deferral
Amounts.  The Matching Amounts under the
2005 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.

 

9

 

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

 

(c)                                  Required
Deferral Amounts.  Required Deferral
Amounts shall vest in accordance with the provisions of the special benefit or
bonus plan under which the award is deferred into the 2005 Plan.

 

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

 

(e)                                  Application of Forfeitures. 
Forfeitures under the 2005 Plan shall be for the benefit of the Company
and shall not be credited to other Participants.

 

10

 

5.5                               Investment of Regular, Elective and Required Deferral
Amounts.

 

A Participant may direct that the portion of his or
her Deferral Account attributable to Regular and Elective Deferral Amounts
under Sections 4.1(a) and 4.1(b) be deemed to be invested in one or more of the
investment options listed in Exhibit C, in increments of whole percents (1%) or
whole dollars ($1.00) of the value of his or her Regular Deferral and Elective
Deferral Amount (a “New Money Election”). 
A Participant also may direct that Regular and Elective 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 whole percents (1%) or whole dollars ($1.00) of the value of his
or her Regular and Elective 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 and Elective 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.  A Participant may direct
investment of his or her Required Deferral Amounts under Section 4.1(c) in the
same manner as Regular and Elective Deferral Amounts, unless otherwise provided
under the terms of the special benefit or bonus plan under which the award was
made.

 

The effective date
of any New Money Election or Reallocation Election shall be the Valuation Date
on which such election is received by the Committee in accordance with uniform
rules established by the Committee.  The
Company is not required to follow any deemed investment election of any
Participant and 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.

 

The election of
deemed investments among the options provided above shall be the sole
responsibility of each Participant.  The
Company, the Employers, their employees and Committee members are not
authorized to make any recommendation to any Participant with respect to such
election.  Each Participant assumes all
risk connected with any adjustment to the value of his Deferral Account.  Neither the Committee, the Company, nor the
Employers in any way guarantees against loss or depreciation.

 

5.6                               Investment of Matching Amounts.

 

Notwithstanding anything in Section 5.5 to the contrary, 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 the amounts to be credited to his Matching Account.

 

11

 

ARTICLE
VI

 

PAYMENT
OF BENEFITS

 

6.1                               Payment of Deferral Benefits.

 

Except as otherwise provided in Sections 6.2, 6.3, 6.4 or 6.7, 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
Deferral Election, in such form as provided in Section 6.5; provided further
that distributions to “key employees” as defined in Section 416(i) of the
Code may not be made earlier than six months after the date of separation from
service.

 

6.2                               Payment of Deferral Benefit upon
Termination.

 

Except as otherwise provided in Section 6.7, upon the termination of
service of the Participant as an employee of the Employer and all Selected
Affiliates for reasons other than death, Disability, Early Retirement 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
practicable following such termination; provided further that distributions to “key
employees” as defined in Section 416(i) of the Code may not be made
earlier than six months after the date of separation from service.

 

6.3                               Payments to Beneficiaries upon Death of
Participant.

 

In the event of the Participant’s death after commencement of installment
payments but 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.  In the event of the
Participant’s death prior to commencement of installment payments due under the
2005 Plan, the first installment payment to the Beneficiary, shall be made on
the last business day of March in the calendar year following the calendar year
during which the Participant’s death occurs and shall be paid in the same form
of payment as would have been applicable to the Participant had the Participant
survived.

 

6.4                               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 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
6.4, an “unforeseeable emergency” means a severe financial hardship to the
Participant or Beneficiary resulting from a sudden and unexpected illness or
accident of the Participant or Beneficiary, the Participant’s or Beneficiary’s
spouse, or the Participant’s or Beneficiary’s dependent (as defined in
Section 152(a) of the Code), loss of the Participant’s or Beneficiary’s
property due to casualty, or other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the
Participant or Beneficiary.  The
Participant or Beneficiary shall provide to the Committee such evidence as the
Committee may require to demonstrate that such emergency exists and financial
hardship would occur if the withdrawal were not permitted.  The amount of a Hardship Withdrawal may not
exceed the amount the Committee reasonably determines to be necessary to meet
such emergency needs (including taxes incurred by reason of a taxable
distribution).  The form of payment of
the Hardship Withdrawal shall be a lump sum cash payment.  The amount of the Deferral Benefit otherwise
payable under the 2005 Plan to such Participant shall be adjusted to

 

12

 

reflect
the early payment of the Hardship Withdrawal. 
For purposes of reducing a Participant’s Deferral Account and adjusting
the balances in the various investment options in which such reduced Deferral
Account is deemed to be invested to reflect such Hardship Withdrawal, amounts
represented by such Hardship Withdrawal shall be deemed to have been withdrawn
first, on a pro rata basis, from that portion of his Deferral Account deemed to
be invested in investment options other  than the Equitable Common Stock Fund (the “Non Stock Investments”) and,
second, to the extent the Hardship Withdrawal cannot be fully satisfied by a
deemed withdrawal of the Non Stock Investments, from the portion deemed
invested in the Company Stock Fund.

 

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

 

6.5                               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 Deferral
Election on file with respect to the 2005 Plan Year.

 

(a)                                  Annual payments of a fixed amount which shall
amortize the vested Account balance as of the payment commencement date over a
period of five, ten or fifteen 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, but except as
provided in Section 4.2 and Section 5.6, that portion of a
Participant’s Account attributable to all Matching Amounts shall be paid in
Common Stock of the Company, with any fractional shares paid in cash in a lump
sum.

 

Payment of the Deferral Amount may not commence earlier than
(i) separation from service, (ii) Disability or (iii) death, except
and to the extent for payment of a Required Deferral Amount on the date
specified in the underlying award agreement.

 

6.6                               Commencement of Payments.

 

Commencement of payments under Section 6.1 of the 2005 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 2005
Plan.

 

6.7                               Limited Account Size; Lump Sum
Payment.

 

In the event the Committee determines that the balance of a Participant’s
vested Account is less than $10,000 at the time of commencement of payments (or
such other amount permitted by law to be distributed), or the portion of the
balance of the Participant’s vested Account payable to any Beneficiary is less
than $10,000 at the time of commencement of payments (or such other amount
permitted by law to be distributed), 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 2005 Plan or a
Participant election to the contrary. 
Such lump sum payment shall be equal to the balance of the Participant’s
vested Account or the portion thereof payable to a Beneficiary.

 

13

 

6.8                               Limitation on Distributions.

 

In the case of a change in ownership or effective control of the Company,
as defined in Section 409A of the Code or the regulations thereunder,
notwithstanding anything to the contrary herein, no distributions may be made
earlier than the date permitted under Section 409A of the Code and the
regulations thereunder to any Participant who is subject to such requirements.

 

14

 

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 2005 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 Equitable 401(k) 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 but which will not be effective and supersede all
prior designations until it is received and acknowledged by the Committee or
its delegate.  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 2005
Plan.

 

15

 

ARTICLE
VIII

 

ADMINISTRATION

 

8.1                               Committee.

 

The administrative committee for the 2005 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 2005 Plan, (ii)
complete discretion to adopt rules and procedures governing the 2005 Plan from
time to time, and (iii) sole authority to give interpretive rulings with
respect to the 2005 Plan.

 

8.2                               Investments.

 

The Benefits
Investment Committee of the Company shall have the sole discretion to choose
the investment options available under the 2005 Plan and to change or eliminate
such investment options, from time to time, as it deems appropriate.

 

8.3                               Agents.

 

The Committee may 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 2005 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 2005 Plan shall be final and binding upon all persons having
any interest in the 2005 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 2005
Plan, except in the case of gross negligence or willful misconduct by any such
member or agent of the Committee or Benefits Investment Committee.

 

16

 

ARTICLE
IX

 

AMENDMENT AND TERMINATION OF 2005 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 2005
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 2005
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 2005 Plan at any time and for any reason
whatsoever unless and to the extent otherwise provided by the special benefit
or bonus plan governing a particular account. 
On and after the 2005 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 2005
Plan shall not adversely affect the value of a Participant’s Account, the
crediting of investment return under Section 5.2 or the timing or method of
distribution of a Participant’s Account except as otherwise provided in the
2005 Plan, without the Participant’s prior written consent.

 

17

 

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 or the Company.  The
Employer’s and the Company’s obligation under the 2005 Plan shall be merely
that of an unfunded and unsecured promise of the Employer or the Company to pay
money in the future. To the extent that any Participant or Beneficiary or other
person acquires a right to receive payments under the 2005 Plan, such right
shall be no greater than the right, and each Participant and Beneficiary shall
at all times have the status, of a general unsecured creditor of the Company or
any Employer. Notwithstanding the foregoing, in the event of a Change in
Control, the Company shall create an irrevocable trust, subject to the claim of
creditors, or before such time the Company may create such an irrevocable or
revocable trust, to hold funds to be used in payment of the obligations of
Employers under the 2005 Plan if such trust will not cause the 2005 Plan to be
considered a funded deferred compensation plan under ERISA or the Code.  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 2005 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 2005 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 and at
such times 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 2005 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 2005 Plan by
litigation or other legal action because the cost and expense thereof would
substantially detract from the benefits intended to be

 

18

 

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 2005 Plan
or in the event that the Employer or any other person takes any action to
declare this 2005 Plan void or unenforceable, or institutes any litigation
designed to deny, or to recover from, the 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 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 2005 Plan
or any provision thereof; or as a result of the Employer or any person
contesting the validity or enforceability of this 2005 Plan or any provision thereof.  Notwithstanding the foregoing, nothing herein
shall require the Company to pay any attorney or related fees and expenses or
to consent to an Employee’s use of counsel retained by the Company prior to the
occurrence of a Change in Control.

 

10.4                        No Acceleration of Benefits.

 

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

 

10.5                        Captions.

 

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

 

10.6                        Governing Law.

 

The provisions of the 2005 Plan shall be construed and interpreted
according to the laws of the Commonwealth of Pennsylvania without regard to its
conflicts of laws provisions.

 

10.7                        Successors.

 

The provisions of the 2005 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.

 

10.8                        No Right to Continued Service.

 

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

 

19

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