Document:

Exhibit 10.16(c)

 

	
  To:

  	
  Steven Schlotterbeck

  
	
   

  	
  Managing Director, E&P Planning and
  Development

  
	
   

  	
   

  
	
  From:

  	
  Philip Conti

  
	
   

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  
	
  Date:

  	
  May 17, 2006

  
	
   

  	
   

  
	
  Subject:

  	
  Horizontal Drilling Incentive Opportunities

  

 

The following provides you with an outline of the incentive
opportunities available to you.

 

Regular Short Term Incentive

 

1.              Your incentive
opportunities are provided for under the Equitable Resources, Inc.
Short-term Incentive Plan (the “STIP”). 
A copy of the 2006 plan is attached for your review.

 

2.              Your incentive
targets for 2006, 2007 and 2008 will be 40% of your base salary.  Based on your current base salary of $175,000,
your bonus target for this year is $70,000. 
This target will be adjusted as your salary changes.  Payment will be made, if at all, in
accordance with the terms of the applicable STIP.

 

3.              Value drivers will
be established and approved by me each year. 
A copy of the 2006 value drivers, which we have already discussed, is
attached.  These drivers may, with my
approval, be changed during the year.  If
any revisions are approved, an updated list of value drivers will be provided
to you for your records.

 

4.              Your performance on
your value drivers will be assessed as exceptional, successful, marginal or
unsatisfactory.  The President, Chief
Executive Officer and Chairman may, but shall not be obligated to, in his sole
and absolute discretion, award you an incentive payment of up to 250% of your
target for exceptional performance, subject to the determination of the
Headquarters pool by the Compensation Committee.

 

 

Additional Bonus

 

1.              At the conclusion of
2008, a full review of the Horizontal Drilling Program will be conducted to
determine if an additional bonus is appropriate.  The following will be considered in making
that determination:

 

a.              The horizontal well
pilot program must have been completed in 2006 with a minimum of 5 wells spud
by year -end.  Additionally, capital
expenditure dollars must be approved by the Board of Directors to drill a minimum
of an additional 10 wells in 2007;  and

b.             A minimum of 20
additional wells must be spud in 2007 with capital expenditure dollars approved
by the Board of Directors to drill a minimum of an additional 25 wells in 2008;
and

c.              A minimum of 25
additional wells must be spud in 2008 with capital expenditures approved by the
Board of Directors to drill a minimum of an additional 50 wells in 2009.

 

2.              The bonus target for
full execution of the details provided above will be $1,000,000. The Chairman,
President and Chief Executive Officer may, in his sole and absolute discretion,
award a bonus payment adjusted to account for less than full execution as
defined above.  You must be an active
employee on February 2, 2009 to be considered for this additional bonus
payment. Except as otherwise required by this memorandum, your additional bonus
will be payable in accordance with the applicable STIP, including the
resolution of any disputes relative to the payment of this additional bonus.

 

3.              Notwithstanding the
foregoing, you are an employee at will, and we have no obligation to continue
your employment for the term of the above incentives.  In the event of termination of employment for
any reason prior to February 2, 2009, subject to the following sentence,
you shall have no right to the above incentives to the extent that they are
unpaid as of date of termination.  If
termination is involuntary and without fault on your part, including death or
disability as defined above (as defined in Sec. 409A(a)(2)(c) of the Internal
Revenue Code), you will be eligible to receive a partial additional payment if
you have achieved the stated objectives that were due as of the date of such
termination, death or disability as follows:

 

	
  Termination Date

  	
   

  	
  Percent Payable

  	
   

  
	
  Prior to December 31, 2006

  	
   

  	
  0

  	
  %

  
	
  January 1, 2007 to December 31,
  2007

  	
   

  	
  25

  	
  %

  
	
  January 1, 2008 to December 31,
  2008

  	
   

  	
  50

  	
  %

  

 

4.              In the event that
all or a portion of the Devonian shale development rights in the Kentucky or
Brenton districts are sold, farmed out or otherwise restricted (including EPC’s
becoming a non-operator with no such development rights), the final cumulative
well target of 100 approved wells will be reduced by one well for 

 

 

every 20,000
gross acres sold, farmed-out or otherwise restricted as to Devonian shall
horizontal development.  The objectives
will be reduced in reverse order—i.e., 2007 objectives will not be affected
until the well target has been reduced by 50 wells.  If all of the Kentucky and Brenton development
rights are sold, farmed-out or otherwise restricted and you have achieved the
stated objectives due as of the date of such sale, farm-out or restriction,
then a partial additional bonus will be paid to you within 30 days of such
transaction as follows:

 

	
  Transaction Date

  	
   

  	
  Percent Payable

  	
   

  
	
  Prior to December 31, 2006

  	
   

  	
  0

  	
  %

  
	
  January 1, 2007 to December 31,
  2007

  	
   

  	
  50

  	
  %

  
	
  January 1, 2008 to December 31,
  2008

  	
   

  	
  100

  	
  %

  

 

I am looking forward to working with you to fully explore the viability
of the horizontal drilling at Equitable Resources.  Please sign below indicating that you have
been provided the material listed above and do not have questions regarding the
incentive opportunities described in this memo. 
If you would like to discuss the incentive opportunities provided in
this memo in more detail, please call Dave Smith at (412) 553-5740.

 

	
  Accepted on

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Steven Schlotterbeck

  	
   

  

 

 

 

	
  To:

  	
  Steven T. Schlotterbeck

  
	
   

  	
  President, Equitable Production

  
	
   

  	
   

  
	
  From:

  	
  Charlene Petrelli

  
	
   

  	
  Vice President and Chief Human Resources
  Officer

  
	
   

  	
   

  
	
  Date:

  	
  August 18, 2008

  
	
   

  	
   

  
	
  Subject:

  	
  Amendment to Horizontal Drilling Incentive
  Opportunities

  

 

The following amends (this “Amendment”) that certain letter dated May 17,
2006 (the “Letter”) regarding Horizontal Drilling Incentive Opportunities for
the purposes of complying with Section 409A of the Internal Revenue Code
of 1986, as amended, and changing the medium of payment of any additional bonus
as set forth herein.

 

Regular Short Term Incentive

 

1.              If and to the extent
earned, any short term incentive amounts will be paid under and pursuant to the
terms of, and at the time and in the form provided in the Equitable Resources, Inc.
Executive Short-Term Incentive Plan.

 

Additional Bonus

 

1.              Except as otherwise
required herein, any additional bonus will be payable at the time and in the
form provided in the Executive Short-Term Incentive Plan.

 

2.              Equitable Resources, Inc.
(“Equitable”) has determined to amend the medium of payment with respect to the
additional bonus target of $1,000,000 (the “Target Amount”) set forth in the
Letter.  Equitable has determined to
satisfy any obligation it may incur for such amount in shares of Equitable
Common Stock, without par value (“Shares”), as provided in and pursuant to the
Equitable 1999 Long-Term Incentive Plan (the “Plan”).  No cash shall be payable with respect to the
additional bonus.

 

3.              (a)  Subject to
the terms of the Letter as amended by this Amendment, the number of Shares that
may be earned as an equivalent to the Target Amount is 29,000 Shares, subject
to adjustment as provided in the Plan. 
In the event that a bonus payment is awarded for less than full
execution of the performance criteria as set forth in the Letter, the number of
Shares earned shall be an adjusted portion of the number of shares equivalent
to the Target Amount, as determined by the Chairman and Chief Executive Officer,
subject to the approval of the Compensation Committee.

 

 

(b)           As consideration for
the promises made in this Agreement, (i) concurrently
herewith you shall execute and deliver to the Company a new Confidentially,
Non-Solicitation and Non-Competition Agreement in the form of Exhibit A
hereto and a Change of Control Agreement in the form of Exhibit B hereto and
(ii) effective the date above, your stock ownership guidelines are
increased from two times base salary to four times base salary.

 

4.              In the event that
you or your estate receive a partial payment pursuant to paragraph 3 of
the “Additional Bonus” section of the Letter based upon your termination of
employment prior to February 2, 2009 (the end of the “Performance Period”),
such payment will be made in Shares in a lump sum on the 30th day following your separation from service,
death or disability, as the case may be; provided, that, in the event such
amount is payable upon your separation from service and you are a “specified
employee” under Section 409A of the Internal Revenue Code at the time of
your separation from service, no such amount may be paid to you until the first
day following the six-month anniversary of your separation from service.  The term “termination,” when used in the
context of a condition to, or timing of, payment hereunder shall be interpreted
to mean a “separation from service” as that term is used in Section 409A
of the Internal Revenue Code.

 

5.              The last sentence of
paragraph 4 of the “Additional Bonus” section of the Letter is amended and
restated to read as set forth in italics:

 

If all of the Kentucky and Brenton development rights are sold, farmed-out or
otherwise restricted and you have achieved the stated objectives due as of the
date of such sale, farm-out or restriction, then the Performance Period will
automatically end and a partial additional bonus will be paid to you, subject
to your continued employment on the payment date, as follows:

 

	
  Transaction Date

  	
   

  	
  Percent Payable

  	
   

  
	
  Prior to December 31, 2006

  	
   

  	
  0

  	
  %

  
	
  January 1, 2007 to December 31,
  2007

  	
   

  	
  50

  	
  %

  
	
  January 1, 2008 to December 31,
  2008

  	
   

  	
  100

  	
  %

  

 

In the event that you receive a payment pursuant to paragraph 4 of the
Letter, such payment will be made in Shares in a lump sum within 30 days
following the end of the Performance Period.

 

6.              You acknowledge and
agree that Equitable may amend the incentive opportunities set forth in the
Letter directly or indirectly through amendment of any underlying plans from
time to time without your consent to the extent deemed necessary or
appropriate, in its sole discretion, to effect compliance with Section 409A
of the Internal Revenue Code, including regulations and interpretations thereunder, 

 

 

which
amendments may result in a reduction of benefits provided hereunder and/or
other unfavorable changes to you.

 

7.              Except as provided
herein, the Letter is, in all other respects, unchanged and is and shall
continue to be in full force and effect, and is hereby in all respects ratified
and confirmed.

 

Please sign below indicating that you acknowledge and accept the foregoing
amendment.

 

 

	
  EQUITABLE RESOURCES, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ Charlene Petrelli

  	
   

  
	
  Charlene Petrelli

  	
   

  
	
  Vice President and Chief Human Resources
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted on:

  	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Steven Schlotterbeck

  	
   

  
	
  Steven SchlotterbeckExhibit 10.18

 

AMENDED
AND RESTATED INDEMNIFICATION AGREEMENT

 

This Amended and Restated Agreement (this “Agreement”)
is made effective as of the 3rd day of December,
2008, by and between Equitable Resources, Inc., a Pennsylvania corporation
(the “Company”) and «Indemnitee» (the “Indemnitee”),
a director and/or officer of the Company.

 

WHEREAS, it is
essential that the Company retain and attract as directors and officers the
most capable persons available; and

 

WHEREAS,
Indemnitee is a director and/or officer of the Company and in that capacity is
performing a valuable service for the Company; and

 

WHEREAS,
Company Bylaws (the “Bylaws”) contain a provision which provides for
indemnification of and advancement of expenses to the directors and officers of
the Company for liabilities and expenses they incur in their capacities as
such, and the Bylaws and the applicable indemnification statutes of the
Commonwealth of Pennsylvania provide that they are not exclusive; and

 

WHEREAS, in
recognition of Indemnitee’s need for protection against personal liability in
order to enhance Indemnitee’s continued service to the Company in an effective
manner, the potential difficulty in obtaining satisfactory Directors and
Officers Liability Insurance (“D & O Insurance”) coverage, and
Indemnitee’s reliance on the Bylaws, and in part to provide Indemnitee with
specific contractual assurance that the protection promised by the Bylaws will
be available to Indemnitee (regardless of, among other things, any amendment to
or revocation of the Bylaws or any change in the composition of the Company’s
Board of Directors or acquisition transaction relating to the Company), the
Company desires to provide in this Agreement for the indemnification of and the
advancing of expenses to Indemnitee to the fullest extent permitted by law and
as set forth in this Agreement, and, to the extent insurance is maintained, for
the continued coverage of Indemnitee under the Company’s D & O
Insurance policies.

 

NOW, THEREFORE,
in consideration of the premises and of Indemnitee continuing to serve the
Company directly or, at its request, another enterprise, and intending to be
legally bound hereby, the parties hereto agree as follows:

 

1.                                       Indemnity
of Indemnitee.

 

(a)                                  The
Company shall indemnify and hold harmless the Indemnitee against any and all
reasonable expenses, including fees and expenses of counsel, and any and all
liability and loss, including judgments, fines, ERISA excise taxes or penalties
and amounts paid or to be paid in settlement, incurred or paid by Indemnitee in
connection with any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative
(hereinafter “a proceeding”) and whether or not by or in the right of the
Company or otherwise, 

 

 

to which the Indemnitee
is, was or at any time becomes a party, or is threatened to be made a party or
is involved (as a witness or otherwise) by reason of the fact that Indemnitee
is or was a director or officer of the Company or is or was serving at the
request of the Company as director, officer, employee, trustee or
representative of another corporation or of a partnership, joint venture, trust
or other enterprise, including service with respect to employee benefit plans,
whether the basis of such proceeding is alleged action in an official capacity
or in any other capacity while serving as a director, officer, employee,
trustee or representative, unless the act or failure to act giving rise to the
claim for indemnification is determined by a court to have constituted willful
misconduct or recklessness; provided, however, that the Company shall indemnify
the Indemnitee in connection with a proceeding (or part thereof) initiated by
the Indemnitee (other than a proceeding to enforce the Indemnitee’s rights to
indemnification under this Agreement or otherwise) prior to a Change of
Control, as defined in Section 2(e), only if such proceeding (or part
thereof) was authorized by the Board of Directors of the Company.

 

(b)                                 Subject
to the foregoing limitation concerning certain proceedings initiated by the
Indemnitee prior to a Change of Control, the Company shall pay the expenses
(including fees and expenses of counsel) incurred by Indemnitee in connection
with any proceeding in advance of the final disposition thereof promptly after
receipt by the Company of a request therefor stating in reasonable detail the
expenses incurred or to be incurred.

 

(c)                                  If
a claim under paragraph (a) or (b) of this section is not paid in
full by the Company within forty-five (45) days after a written claim has been
received by the Company, the Indemnitee may, at any time thereafter, bring suit
against the Company to recover the unpaid amount of the claim.  The burden of proving that indemnification or
advances are not appropriate shall be on the Company.  The Indemnitee shall also be entitled to be
paid the expenses of prosecuting such claim to the extent he or she is
successful in whole or in part on the merits or otherwise in establishing his or
her right to indemnification or to the advancement of expenses.  The Company shall pay such fees and expenses
in advance of the final disposition of such action on the terms and conditions
set forth in Section 1(b).

 

(d)                                 The
termination of any action, suit or proceeding to which indemnitee is a party by
judgment, order, settlement, or conviction, or upon a plea of nolo contender or
its equivalent, shall not create a presumption that Indemnitee engaged in
willful misconduct or recklessness or otherwise is not entitled to recover
hereunder.

 

2.                                       Maintenance
of Insurance and Funding.

 

(a)                                  The
Company represents that a summary of the terms of the policies of D&O
Insurance in effect as of the date of this Agreement is attached hereto as Exhibit A
(the “Insurance Policies”).

 

Subject only to the provisions of Section 2(b) hereof,
the Company agrees that, so long as Indemnitee shall continue to serve as an
officer or director of the Company (or shall continue at the request of the
Company to serve as a director, officer, employee, trustee or representative of
another corporation, partnership, joint venture, trust or other enterprise,
including service with respect to an employee benefit plan) and thereafter so
long as Indemnitee shall be subject to any

 

2

 

possible claim or
threatened, pending or completed action, suit or proceeding, whether civil,
criminal or investigative, by reason of the fact that Indemnitee was a director
or officer of the Company (or served in any of said other capacities), the Company
shall purchase and maintain in effect for the benefit of Indemnitee one or more
valid, binding and enforceable policy or policies of D & O Insurance
providing coverage at least comparable to that provided pursuant to the
Insurance Policies.

 

(b)                                 The
Company shall not be required to maintain said policy or policies of D &
O Insurance in effect if, in the reasonable, good faith business judgment of
the then Board of Directors of the Company (i) the premium cost for such
insurance is substantially disproportionate to the amount of coverage, (ii) the
coverage provided by such insurance is so limited by exclusions that there is
insufficient benefit from such insurance or (iii) said insurance is not
otherwise reasonably available; provided, however, that in the event the then
Board of Directors makes such a judgment, the Company shall purchase and
maintain in force a policy or policies of D & O Insurance in the
amount and with such coverage as the then Board of Directors determines to be
reasonably available.  Notwithstanding
the general provisions of this Section 2(b), following a Change of
Control, any decision not to maintain any policy or policies of D & O
Insurance or to reduce the amount or coverage under any such policy or policies
shall be effective only if there are Disinterested Directors (as defined in Section 2(e) hereof)
and shall require the concurrence of a majority of the Disinterested Directors.

 

(c)                                  If
and to the extent the Company, acting under Section 2(b), does not
purchase and maintain in effect the policy or policies of D & O
Insurance described in Section 2(a), the Company shall indemnify and hold
harmless the Indemnitee to the full extent of the coverage which would
otherwise have been provided by such policies. 
The rights of the Indemnitee hereunder shall be in addition to all other
rights of Indemnitee under the remaining provisions of this Agreement.

 

(d)                                 In
the event of a Potential Change of Control or if and to the extent the Company
is not required to maintain in effect the policy or policies of D & O
Insurance described in Section 2(a) pursuant to the provisions of Section 2(b),
the Company shall, upon written request by Indemnitee, create a “Trust” for the
benefit of Indemnitee and from time to time, upon written request by Indemnitee,
shall fund such Trust in an amount sufficient to pay any and all expenses,
including attorneys’ fees, and any and all liability and loss, including
judgments, fines, ERISA excise taxes or penalties and amounts paid or to be
paid in settlement actually and reasonably incurred by him or on his behalf for
which the Indemnitee is entitled to indemnification or with respect to which
indemnification is claimed, reasonably anticipated or proposed to be paid in
accordance with the terms of this Agreement or otherwise; provided that in no
event shall more than $100,000 be required to be deposited in any Trust created
hereunder in excess of the amounts deposited in respect of reasonably
anticipated expenses, including attorneys’ fees.  The amounts to be deposited in the Trust
pursuant to the foregoing funding obligation shall be determined by a majority
of the Disinterested Directors whose determination shall be final and
conclusive.  At all times the Trust shall
remain as an asset of the Company and subject to the claims of the Company’s
creditors.

 

3

 

The terms of the Trust shall provide that upon a
Change of Control (i) the Trust shall not be revoked or the principal
thereof invaded, without the written consent of the Indemnitee except as set
forth in the preceding paragraph, (ii) the Trust shall advance, within two
business days of a request by the Indemnitee, any and all expenses, including
attorneys’ fees, to the Indemnitee (and the Indemnitee hereby agrees to reimburse
the Trust under the circumstances under which the Indemnitee would be required
to reimburse the Company under Section 5 of this Agreement), (iii) the
Trust shall continue to be funded by the Company in accordance with the funding
obligation set forth above, (iv) the Trustee shall promptly pay to the
Indemnitee all amounts for which the Indemnitee shall be entitled to
indemnification pursuant to this Agreement or otherwise, and (v) all
unexpended funds in such Trust shall revert to the Company upon a final
determination by a majority of the Disinterested Directors or a court of
competent jurisdiction, as the case may be, that the Indemnitee has been fully
indemnified under the terms of this Agreement. 
The Trustee shall be a bank or trust company or other individual or
entity chosen by the Indemnitee and reasonably acceptable and approved of by
the Company.

 

(e)                                  For
the purposes of this Agreement:

 

(i)                                     a
“Change of Control” shall mean any of the following events (each of such
events being herein referred to as a “Change of Control”):

 

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, the following shall
not constitute a Change of Control:  (i) any
acquisition by the Company or any of its subsidiaries, or any employee benefit
plan (or related trust) sponsored or maintained by the Company or any of its
subsidiaries and (ii) an
acquisition by any person or group of persons of not more than 

 

4

 

forty percent (40%) of the outstanding shares of Company common stock
or the combined voting power of the then outstanding voting securities of the
Company if such acquisition resulted from the issuance of capital stock by the
Company and the issuance and the acquiring person or group was approved in
advance of such issuance by at least two-thirds of the Continuing Directors
then in office;

 

C.                                     The
Company’s termination of its business and liquidation of its assets;

 

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

 

5

 

E.                                      The
following individuals (sometimes referred to herein as “Continuing Directors”)
cease for any reason to constitute a majority of the number of directors then
serving:  individuals who, on the date
hereof, constitute the entire Board 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.

 

(ii)                                  a
“Disinterested Director” means any member of the Board of Directors of
the Company who is unaffiliated with, and not a representative of, an
Interested Shareholder and who was a member of the Board of Directors prior to
the time that the Interested Shareholder became an Interested Shareholder or
became a member subsequently to fill a vacancy created by an increase in the
size of the Board of Directors and did receive the favorable vote of two-thirds
(2/3) of the Disinterested Directors in connection with being nominated for
election by the shareholders to fill such vacancy or in being elected by the
Board of Directors to fill such vacancy, and any successor of a Disinterested
Director who is unaffiliated with, and not a representative of, the Interested
Shareholder and is recommended or elected to succeed a Disinterested Director
by a majority of the Disinterested Directors then on the Board of Directors.

 

(iii)                               “Interested
Shareholder” means any person (other than the Company or any subsidiary of
the Company and other than any profit sharing, employee stock ownership, or
other employee benefit plan of the Company or any subsidiary of the Company or
any trustee of or fiduciary with respect to any such plan when acting in such
capacity) who or which:

 

A.                                   is
at such time the beneficial owner, directly or indirectly, of more then ten
percent (10%) of the voting power of the outstanding common stock of the
Company;

 

B.                                     was
at any time within the two-year period immediately prior to such time the
beneficial owner, directly or indirectly, of more than ten percent (10%) of the
voting power of the then outstanding common stock of the Company;

 

C.                                     is
at such time an assignee of or has otherwise succeeded to the beneficial
ownership of any shares of common stock of the Company which were at any time
within the two-year period immediately prior to such time beneficially owned by
any 

 

6

 

Interested
Shareholder, if such assignment or succession has occurred in the course of a
transaction or series of transactions not involving a public offering within
the meaning of the Securities Act of 1933, as amended.

 

(iv)                              a “person”
means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization or government (or any
subdivision, department, commission or agency thereof), and includes without
limitation any “person”, as such term is used in Sections 13(d) of 14(d) of
the Securities Exchange Act of 1934, as amended.

 

(v)                                 a
“Potential Change of Control” shall occur if:

 

A.                                   the
Company enters into an agreement or arrangement the consummation of which would
result in the occurrence of a Change of Control;

 

B.                                     any
Person (including the Company) publicly announces an intention to take or to
consider taking actions which if consummated would constitute a Change in
Control; or

 

C.                                     the
Board of Directors of the Company adopts a resolution to the effect that, for
purposes of this Agreement, a Potential Change of Control has occurred.

 

3.                                       Continuation
of Indemnity.

 

The Company’s obligations hereunder shall be
applicable to any and all claims made after the date hereof regardless of when
the facts upon which such claims are based occurred, including times prior to
the date hereof.  All agreements and
obligations of the Company contained in this Agreement shall continue during
the period the Indemnitee is a director or officer of the Company (or is or was
serving at the request of the Company as a director, officer, employee, trustee
or representative of another corporation, partnership, joint venture, trust or
other enterprise, including any employee benefit plan) and shall continue
thereafter so long as the Indemnitee shall be subject to any possible claim or
threatened, pending or completed action, suit or proceeding, whether civil,
criminal or investigative, by reason of the fact that the Indemnitee was a
director or officer of the Company or serving in any other capacity referred to
herein.

 

4.                                       Contribution.

 

If the full
indemnification provided in Section 1 hereof may not be paid to an
Indemnitee because such indemnification is prohibited by law, then in respect
of any actual or threatened proceeding in which the Company is jointly liable
with Indemnitee (or would be if joined in such proceeding) the Company shall
contribute to the amount of expenses incurred by the Indemnitee for which
indemnification is not available in such proportion as is appropriate to
reflect (i) the 

 

7

 

relative benefits
received by the Company on the one hand and the Indemnitee on the other hand
from the transaction from which such proceeding arose and (ii) the
relative fault of the Company and the Indemnitee, as well as any other relevant
equitable considerations.  The relative
fault of the Company (which shall be deemed to include its other directors,
officers and employees) on the one hand and of the Indemnitee on the other hand
shall be determined by reference to, among other things, the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
the circumstances resulting in such expenses. 
The Company agrees that it would not be just and equitable if
contribution pursuant to this section were determined by any method of
allocation which does not take account of the foregoing equitable
considerations.

 

5.                                       Notification
and Defense of Claim.

 

As soon as practicable after receipt by the Indemnitee
of actual knowledge of any action, suit or proceeding, the Indemnitee shall
notify the Company thereof if a claim in respect thereof may be or is being
made by the Indemnitee against the Company under this Agreement; provided, that
the failure of the Indemnitee to give such notice shall not relieve the Company
of its obligations hereunder except to the extent the Company is actually
prejudiced by such failure.  With respect
to any action, suit or proceeding as to which the Indemnitee has so notified
the Company:

 

(a)                                  The
Company will be entitled to participate therein at its own expense; and

 

(b)                                 Except
as otherwise provided below, the Company may assume the defense thereof, with
counsel reasonably satisfactory to the Indemnitee. After the Company notifies
the Indemnitee of its election to so assume the defense, the Company will not
be liable to the Indemnitee under this Agreement for any legal or other
expenses subsequently incurred by the Indemnitee in connection with the
defense, other than reasonable costs of investigation, including an
investigation in connection with determining whether there exists a conflict of
interest of the type described in (ii) of this paragraph, or as otherwise
provided in this paragraph. The Indemnitee shall have the right to employ his
or her counsel in such action, suit or proceeding but the fees and expenses of
such counsel incurred after the Company notifies the Indemnitee of its
assumption of the defense shall be at the expense of the Indemnitee unless (i) the
Company authorizes the Indemnitee’s employment of counsel, provided, that
following a Change of Control, the Indemnitee shall be entitled to employ his
or her own counsel at the Company’s expense after giving not less than 30 days’
notice to the Company unless a majority of the Disinterested Directors
determine that the Indemnitee’s interests are adequately represented by the
counsel employed by the Company; (ii) the Indemnitee shall have reasonably
concluded that there may be a conflict of interest between the Company and the
Indemnitee in the conduct of the defense or (iii) the Company shall not
have employed counsel to assume the defense of such action, in each of which
cases the fees and expenses of counsel shall be at the expense of the Company.
The Company shall not be entitled to assume the defense of any action, suit or
proceeding brought by or on behalf of the Company or as to which the Indemnitee
shall have made the conclusion described in (ii) of this paragraph.

 

(c)                                  The
Company shall not be obligated to indemnify the Indemnitee under this Agreement
for any amounts paid in settlement of any action or claim effected without its
written

 

8

 

consent. The Company
shall not settle any action or claim in any manner which would impose any
penalty or limitation on the Indemnitee without the Indemnitee’s written
consent. Neither the Company nor the Indemnitee shall unreasonably withhold
their consent to any proposed settlement.

 

6.                                       Undertaking
to Repay Expenses.

 

In the event it shall ultimately be determined by a
court that the Indemnitee is not entitled to be indemnified for the expenses
paid by the Company pursuant to Section 1(b) hereof or otherwise or
was not entitled to be fully indemnified, the Indemnitee shall repay to the
Company such amount of the expenses or the appropriate portion thereof, so paid
or advanced.  Indemnitee shall reimburse
the Company for any amounts paid by the Company as indemnification of expenses
to the extent Indemnitee receives payment for the same expenses from any
insurance carrier or from another party.

 

7.                                       Notice.

 

Any notice to the Company shall be directed to
Equitable Resources, Inc., 225 North Shore Drive, Pittsburgh, Pennsylvania
15212, Attention:  Corporate Secretary
(or such other address as the Company shall designate in writing to the
Indemnitee).

 

8.                                       Enforcement.

 

In the event the Indemnitee is required to bring any
action to enforce rights or to collect monies due under this Agreement, the
Company shall pay to the Indemnitee the fees and expenses incurred by the
Indemnitee in bringing and pursuing such action if the Indemnitee is
successful, in whole or in part, on the merits or otherwise, in such
action.  The Company shall pay such fees
and expenses in advance of the final disposition of such action on the terms
and conditions set forth in Section 1(b).

 

9.                                       Severability.

 

If any provision or provisions of this Agreement shall
be held to be invalid, illegal or unenforceable for any reason whatsoever:

 

(a)                                  the
validity, legality and enforceability of the remaining provisions of this
Agreement (including without limitation, each portion of any Section of
this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that is not itself invalid, illegal or unenforceable) shall not
in any way be affected or impaired thereby; and

 

(b)                                 to
the fullest extent possible, the provisions of this Agreement (including,
without limitation, each portion of any Section of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that is not
itself invalid, illegal or unenforceable) shall be construed so as to give
effect to the intent manifested by the provision held invalid, illegal or
unenforceable.

 

9

 

10.                                 Indemnification
Under this Agreement Not Exclusive.

 

(a)                                  The
indemnification provided by this Agreement shall not be deemed exclusive of any
other rights to which the Indemnitee may be entitled under the Articles of
Incorporation of the Corporation or its Bylaws, any other agreement, any vote
of stockholders or directors, or otherwise, both as to action in the Indemnitee’s
official capacity and as to action in another capacity while holding such
office.  The protection and rights
provided by this Agreement and all of such other protections and rights are
intended to be cumulative.

 

(b)                                 It
is the intention of the parties in entering into this Agreement that the
insurers under any D & O Insurance policy shall be obligated
ultimately to pay any claims by Indemnitee which are covered by such policy or
to give such insurers any rights against the Company under or with respect to
this Agreement, including, without limitation, any right to be subrogated to
any of Indemnitee’s right hereunder, unless otherwise expressly agreed to by
the Company in writing and the obligation of such insurers to the Company or
Indemnitee shall not be deemed reduced or impaired in any respect by virtue of
the provisions of this Agreement.

 

11.                                 Miscellaneous.

 

(a)                                  This
Agreement shall be interpreted and enforced in accordance with the laws of the
Commonwealth of Pennsylvania.

 

(b)                                 This
Agreement shall be binding upon the Indemnitee and upon the Company, its
successors and assigns, and shall inure to the benefit of the Indemnitee and
his or her heirs, executors, personal representatives and assigns, and to the
benefit of the Company, its successors and assigns.  If the Company shall merge or consolidate with
another corporation or shall sell, lease, transfer or otherwise dispose of all
or substantially all of its assets to one or more persons or groups (in one
transaction or series of transactions), (i) the Company shall cause the
successor in the merger or consolidation or the transferee of the assets that
is receiving the greatest portion of the assets or earning power transferred
pursuant to the transfer of the assets, by agreement in form and substance
satisfactory to the Indemnitee, to expressly assume all of the Company’s
obligations under and agree to perform this Agreement, and (ii) the term “Company”
whenever used in this Agreement shall mean and include any such successor or
transferee.

 

(c)                                  As used in this Agreement, no matter
adjudicated by a court order shall be deemed “determined” or “ultimately
determined,” and no matter shall be deemed a “final disposition” unless and
until (i) the time to appeal, petition for writ of certiorari or
allocatur, or otherwise seek appellate review or to move for reargument,
rehearing or reconsideration of the order has expired and no appeal, petition
for writ of certiorari, allocatur, or other appellate review, or proceedings
for reargument, rehearing, or reconsideration shall then be pending, or (ii) in
the event that an appeal, petition for writ of certiorari or allocatur, or
other appellate review or reargument, rehearing or reconsideration thereof has
been sought, such order shall have been affirmed by the highest court to which
such order was appealed or review thereof shall have been denied by the highest
court from which a writ of certiorari or allocatur, or other appellate review
or reargument, rehearing, or reconsideration was sought, and the time to take

 

10

 

any
further appeal, to petition for writ of certiorari or allocatur, to otherwise
seek appellate review, or to move for reargument, rehearing, or reconsideration
shall have expired.

 

(d)                                 No
amendment, modification, termination or cancellation of this Agreement shall be
effective unless in writing signed by both of the parties hereto; provided, however, that the Company may
amend this Agreement from time to time without Indemnitee’s consent to the
extent deemed necessary or appropriate, in its sole discretion, to effect
compliance with Section 409A of the Code, including regulations and
interpretations thereunder, which amendments may result in a reduction of
benefits provided hereunder and/or other unfavorable changes to Indemnitee.

 

(e)                                  This
Agreement is intended to provide for the indemnification of, and/or purchase of
insurance policies providing for payments of, expenses and damages incurred
with respect to bona fide claims against the
Indemnitee, as a service provider, or the Company, as the service recipient, in
accordance with Treas. Reg. Section 1.409A-1(b)(10), pursuant to which the
Agreement shall not provide for the deferral of compensation.  The Agreement shall be construed
consistently, and limited in accordance with, the provisions of such
regulation.

 

(f)                                    This
Agreement supersedes the Indemnification Agreement dated as of                             ,
             by and
between the Company and the Indemnitee.

 

IN WITNESS WHEREOF,
the parties have executed this Agreement on and as of the day and year first
above written.

 

	
   

  	
  EQUITABLE RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INDEMNITEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  «Indemnitee»

  

 

11

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