Exhibit 4.1















                             THE COASTAL CORPORATION

                            1998 INCENTIVE STOCK PLAN



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                                                                    Exhibit 4.1


                             THE COASTAL CORPORATION

                            1998 INCENTIVE STOCK PLAN

                                Table of Contents


1.   Purpose................................................................  1
2.   Administration.........................................................  1
3.   Shares Available Under the Plan........................................  1
4.   Authority to Grant Options, Restricted Stock Grants and Stock Awards...  2
5.   Eligibility............................................................  2
6.   Option Price...........................................................  3
7.   Duration of Options....................................................  3
8.   Maximum Value of Stock Subject to Options Which are Incentive Stock
     Options................................................................  3
9.   Amount Exercisable.....................................................  3
10.  Exercise of Options....................................................  3
11.  Transferability of Options to Permitted Transferees....................  4
12.  Termination of Employment or Death of Optionee.........................  5
13.  Requirements of Law....................................................  6
14.  No Rights as Shareholder...............................................  6
15.  Restricted Stock Grants................................................  6
16.  Stock Awards...........................................................  7
17.  Employment Obligation..................................................  8
18.  Changes in the Company's Capital Structure.............................  8
19.  Substitution Options...................................................  9
20.  Amendment or Termination of Plan.......................................  9
21.  Forfeitures............................................................ 10
22.  Tax Withholding........................................................ 10
23.  Written Agreement...................................................... 10
24.  Indemnification of Committee........................................... 10
25.  Effective Date of Plan................................................. 11


                                       (i)

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                                                                    Exhibit 4.1


                             THE COASTAL CORPORATION

                            1998 INCENTIVE STOCK PLAN


         1.   Purpose. This 1998 Incentive Stock Plan (the "Plan") of The
Coastal Corporation (the "Company") for key employees (including officers and
employee directors) of the Company and its subsidiaries, is intended to advance
the best interests of the Company by providing personnel who have substantial
responsibility for the management and growth of the Company and its subsidiaries
with additional incentive by increasing their proprietary interest in the
success of the Company, thereby encouraging them to remain in the employ of the
Company or any of its subsidiaries.

         2.   Administration. The Plan shall be administered by a committee
(the "Committee") consisting of not less than three members of the Board of
Directors of the Company (the "Board"). Until changed by the Board, the
Compensation and Executive Development Committee of the Board shall serve as
the Committee. All of the members of the Committee shall be "Non-Employee
Directors" as defined in Rule 16b-3 of the Rules and Regulations promulgated
under the Securities Exchange Act of 1934 (the "Exchange Act") or any similar
or successor rule and "outside directors" as described in Section 162(m) of the
Internal Revenue Code of 1986, as amended (the "Code"), and regulations issued
thereunder. The Board shall have the power to add or remove members of the
Committee from time to time, and to fill vacancies thereon arising by
resignation, death, removal, or otherwise. The Committee shall designate a
chairman from among its members, who shall preside at all of its meetings, and
shall designate a secretary, without regard to whether that person is a member
of the Committee, who shall keep the minutes of the proceedings and all
records, documents, and data pertaining to its administration of the Plan.
Meetings shall be held at such times and places as shall be determined by the
Committee. A majority of the members of the Committee shall constitute a quorum
for the transaction of business, and the vote of a majority of those members
present at any meeting shall decide any question brought before that meeting.
In addition, the Committee may take any action otherwise proper under the Plan
by the affirmative vote, taken without a meeting, of a majority of its members.
Any decision or determination reduced to writing and signed by a majority of
the members shall be as effective as if it had been made by a majority vote at
a meeting properly called and held. No member of the Committee shall be liable
for any act or omission of any other member of the Committee or for any act or
omission on his own part, including but not limited to the exercise of any
power or discretion given to him under the Plan, except those resulting from
his own gross negligence or willful misconduct. All questions of interpretation
and application of the Plan, including those involving options (the "Options"),
restricted stock ("Restricted Stock"), or awards of stock ("Stock Awards")
shall be subject to the determination of the Committee. The actions of the
Committee in exercising all of the rights, powers and authorities set out in
this Plan, when performed in good faith and in its sole judgment, shall be
final, conclusive, and binding on the parties. When appropriate, the Plan shall
be administered in order to qualify certain of the Options granted hereunder as
"incentive stock options" described in Section 422 of the Internal Revenue Code
of 1986, as amended (the "Code").

         3.   Shares Available Under the Plan. The stock subject to Options,
Restricted Stock Grants and Stock Awards shall be shares of the Company's
Common Stock, $.331/3 par value (the "Common Stock"). The total number of
shares of Common Stock available under the Plan shall not exceed in the
aggregate 4,000,000 shares; provided, that the class and aggregate number of
shares which may be subject to grant hereunder shall be subject to adjustment
in accordance with the provisions of Paragraph 18 hereof. Such shares may be
treasury shares or authorized but unissued shares. The maximum aggregate number
of shares with respect to which Options, Restricted Stock, or Stock Awards may
be granted or issued to any employee under the Plan during each year is 100,000
shares.

         In the event that any outstanding Option or Restricted Stock for any
reason shall expire or terminate by reason of the death or severance of
employment of the optionee or grantee, the surrender of any Option, the
forfeiture of any Restricted Stock, or any other cause, the shares of Common
Stock allocable to the unexercised portion of that Option or the forfeited
Restricted Stock may again be available under the Plan. If Common Stock is used
by an employee pursuant to Section 10 of this Plan to pay the exercise price of
an Option, only the net number of shares of Common Stock issued by the Company
shall be considered utilized under this Plan. If shares of Stock are withheld by
the



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                                                                    Exhibit 4.1


Company to pay tax withholding due from the employee, the number of such shares
withheld shall not be considered utilized under this Plan.

         4.   Authority to Grant Options, Restricted Stock Grants and Stock
Awards. The Committee in its discretion and subject to the provisions of the
Plan, may grant the following from time to time to eligible employees of the
Company or any of its subsidiaries:

              (a)  "Incentive" Stock Options. The Committee may grant
         to an eligible employee an Option or Options to buy a stated
         number of shares of Common Stock under the terms and
         conditions of the Plan, so that the Option qualifies as an
         "incentive stock option" within the meaning of Section 422
         of the Code ("Incentive Stock Option").

              (b)  "Non-incentive" Stock Options. The Committee may
         grant to an eligible employee an Option or Options to buy a
         stated number of shares of Common Stock under the terms and
         conditions of the Plan, which Option or Options do not
         constitute "incentive stock options" within the meaning of
         Section 422 of the Code ("Non-incentive Stock Option").

              (c)  Restricted Stock Grant. The Committee may grant to
         an eligible employee shares of Common Stock subject to
         specified restrictions on transferability and vesting as
         provided in the Plan ("Restricted Stock Grant").

              (d)  Stock Award. The Committee may award and issue
         shares of Common Stock under the Plan to an eligible employee
         ("Stock Award"). Stock Awards may be made in lieu of cash
         compensation or as additional compensation. Stock Awards may
         also be made pursuant to performance based goals established
         by the Committee.

         Each Option granted by the Committee shall specify whether the Option
constitutes an Incentive Stock Option or Non-incentive Stock Option. Subject
only to any applicable limitations set forth in the Plan, the number of shares
of Common Stock covered by any Option, Restricted Stock Grant, and Stock Award,
shall be determined by the Committee.

         5.   Eligibility. The individuals who shall be eligible to participate
in the Plan shall be the key employees, including officers and directors if
they are employees, of the Company, or of any parent or subsidiary corporations,
as the Committee shall determine from time to time. However, no eligible
employee who owns stock possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the corporation employing the
employee or of its parent or subsidiary corporation shall be eligible to receive
an Option which is an Incentive Stock Option unless at the time the Option is
granted, the Option price is at least one hundred ten percent (110%) of the fair
market value of the Common Stock, and the Option by its own terms is not
exercisable after the expiration of five years from the date of grant. No
individual shall be eligible to receive an Option under the Plan while a member
of the Committee.

         For the purposes of the preceding paragraph, an employee shall be
considered as owning the stock owned, directly or indirectly, by or for his
brothers and sisters (whether by the whole or half blood), spouse, ancestors,
and lineal descendants; and stock owned, directly or indirectly, by or for a
corporation, partnership, estate or trust shall be considered as being owned
proportionately by or for its shareholders, partners or beneficiaries.

         Except as otherwise provided, for all purposes of the Plan relating to
Incentive Stock Options, the term "parent corporation" shall mean any
corporation (other than the Company) in an unbroken chain of corporations ending
with the Company if, on the date of grant of the Incentive Stock Option in
question, each of the corporations other than the Company owns stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain; and the term "subsidiary
corporation" shall mean any corporation in an unbroken chain of corporations,
beginning with the Company if, on the date of grant of the Option in question,
each of


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                                                                    Exhibit 4.1


the corporations, other than the last corporation in the chain, owns stock
possessing fifty percent (50%) or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain.

         For all purposes of the Plan relating to Non-incentive Stock Options,
Restricted Stock Grants, and Stock Awards, the terms "parent corporation" and
"subsidiary corporation" as defined above shall be expanded to include, in
addition to the specified entities which are corporations, any unincorporated
trade, business, or partnership in which fifty percent (50%) or more of the
ownership interest in such entity is owned directly or indirectly by the
Company.

         6.   Option Price. The price at which shares may be purchased pursuant
to an Option, whether it is an Incentive Stock Option or a Non-incentive Stock
Option, shall not be less than the fair market value of the shares of Common
Stock on the date the Option is granted. However, the Committee in its
discretion may provide that the price at which shares may be purchased shall be
more than the fair market value of the shares of Common Stock on the date the
Option is granted. The Option price determined under this Paragraph 6 shall be
referred to herein as the "Option Price."

         In the case of any eligible employee under the Plan who owns stock
possessing more than ten percent (10%) of the total combined voting power of all
classes of stock of the corporation employing the employee, or of its parent or
subsidiary corporation (described in Paragraph 5), the Option Price at which
shares may be purchased pursuant to any Option which is an Incentive Stock
Option granted under this Plan shall not be less than one hundred ten percent
(110%) of the fair market value of the Common Stock on the date the Option is
granted.

         For all purposes of this Plan, the "fair market value" of a share of
Common Stock as of any particular date shall mean the average of the high and
low sales price of a share of Common Stock on that date as reported by the
principal national securities exchange on which the Common Stock is then listed,
if the Common Stock is then listed on a national securities exchange, or the
average of the bid and asked price of a share of Common Stock on that date as
reported in the NASDAQ listing, if the Common Stock is not then listed on a
national securities exchange, provided that if no closing price or quotes are
reported on that date or, if in the discretion of the Committee, another means
of determining the fair market value of a share of Common Stock at that date
shall be necessary or advisable, the Committee may provide for another means of
determining fair market value.

         7.   Duration of Options. No Option, whether an Incentive Stock Option
or a Non-incentive Stock Option, shall be exercisable after the expiration of
ten (10) years from the date the Option is granted; and the Committee in its
discretion may provide that the Option shall be exercisable throughout the
ten-year period or during any lesser period of time commencing on or after the
date of grant and ending on or before the expiration of the ten-year period.
Provided, in the case of any eligible employee who owns stock possessing more
than ten percent of the total combined voting power of all classes of stock of
the corporation employing the employee or of its parent or subsidiary
corporation (described in Paragraph 5), no Option which is an Incentive Stock
Option shall be exercisable after the expiration of five (5) years from the date
the Option is granted.

         8.   Maximum Value of Stock Subject to Options Which are Incentive
Stock Options. Notwithstanding any other provisions of the Plan to the contrary,
the aggregate fair market value (determined as of the date the Option is
granted) of the Common Stock with respect to which Incentive Stock Options are
exercisable for the first time by the optionee in any calendar year (under this
Plan and any other incentive stock option plan(s) of the Company and any parent
or subsidiary corporation thereof), shall not exceed $100,000. In making this
determination, Options shall be taken into account in the order in which they
were granted.

         9.   Amount Exercisable. Unless otherwise provided by the Committee in
an Option Agreement, each option may be exercised, so long as it is valid and
outstanding, at a cumulative rate of 15% of the Option shares on the first
anniversary of the date the Option is granted; 20% of the Option shares on each
of the second, third and fourth anniversaries of the date the Option is granted;
and 25% of the Option shares on the fifth anniversary of the date the Option is
granted, or from time to time in part or as a whole, subject to any limitations
with respect to the number of shares for which the Option may be exercised at a
particular time and to such other conditions as the Committee in its


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                                                                    Exhibit 4.1


discretion may specify upon granting the Option. However, the Committee in its
absolute discretion may accelerate the time at which any outstanding Option may
be exercised.

         10.  Exercise of Options. An optionee may exercise an Option by
delivering to the Company a written notice stating (i) that the optionee wishes
to exercise the Option on the date notice is delivered, (ii) the number of
shares of Common Stock with respect to which the Option is to be exercised,
(iii) the address to which the certificate representing the shares of Common
Stock should be mailed, and (iv) the social security number of the optionee. In
order to be effective, the written notice shall be accompanied by (i) payment of
the Option Price of the shares of Common Stock and (ii) payment of an amount of
money necessary to satisfy the withholding tax liability, if any, that may
result from the exercise of the Option. Each payment shall be made by cash or by
check drawn on a national banking association and payable to the order of the
Company in United States dollars.

         At the time of receipt by the Company of written notice of exercise,
the optionee may deliver to the Company, to the extent permitted by law, in
payment of the Option Price of the shares of Common Stock with respect to which
the Option is exercised, (x) certificates registered in the name of the optionee
that represent a number of shares of Common Stock legally and beneficially owned
by the optionee (free of all liens, claims and encumbrances of every kind) and
having a fair market value on the date of receipt by the Company of written
notice that is not greater than the Option Price of the shares of Common Stock
with respect to which the Option is to be exercised, the certificates to be
accompanied by stock powers duly endorsed in blank by the record holder of the
shares of Common Stock represented by certificates (or in lieu of such
certificates, other arrangements for the transfer of shares to the Company which
are satisfactory to the Company), and cash or a check for the balance and (y) if
the Option Price of the shares of Common Stock with respect to which such Option
is to be exercised exceeds the fair market value, a check drawn on a national
banking association and payable to the order of the Company in an amount, in
United States dollars, equal to the amount of the excess plus (z) the amount of
money, in a form acceptable to the Committee, necessary to satisfy the
withholding tax liability, if any, that may result from the exercise of the
Option.

         Notwithstanding the provisions of the immediately preceding sentence,
the Committee, in its sole discretion, may refuse to accept shares of Common
Stock in payment of the Option Price of the shares of Common Stock with respect
to which the Option is to be exercised and, in that event, any certificates
representing shares of Common Stock that were received by the Company with
written notice shall be returned to the optionee, together with notice by the
Company to the optionee of the refusal of the Committee to accept the shares of
Common Stock. The Company, upon approval of the Committee and in its sole
discretion, following the request of the optionee, may retain shares of Common
Stock which would otherwise be issued upon exercise of an Option to satisfy the
withholding tax liability that may result from the exercise of an Option. In
this case, the retained shares shall be valued at their then fair market value.
If, at the expiration of seven business days after the delivery to optionee of
written notice from the Company that it will not accept shares of Common Stock
in payment of the exercise price, the optionee shall not have delivered to the
Company a check or money order drawn on a national banking association and
payable to the order of the Company in an amount, in United States dollars,
equal to the Option Price of the shares of Common Stock with respect to which
such Option is to be exercised, the written notice from the optionee to the
Company shall be ineffective to exercise the Option.

         The Committee may permit an employee to elect to pay the exercise price
upon exercise of an Option by authorizing a third party (broker) to sell all (or
a portion) of the shares of Stock acquired upon exercise of the Option and remit
to the Company a sufficient portion of the sale proceeds to pay the exercise
price and any applicable tax withholding resulting from such exercise.

         As promptly as practicable after the receipt by the Company of (i) the
written notice from the optionee, (ii) payment, in the form required by the
foregoing provisions of this Paragraph of the Option Price of the shares of
Common Stock with respect to which the Option is to be exercised, and (iii)
payment, in the form required by the foregoing provisions of this Paragraph of
an amount of money necessary to satisfy any withholding tax liability that may
result from the exercise of the Option, the Company shall deliver to the
optionee a certificate representing the number of shares of Common Stock with
respect to which the Option has been exercised, reduced to the extent applicable
by the number of shares retained by the Company as provided above to pay any
required withholding tax liability, the certificate to be registered in the name
of the optionee, provided that delivery shall be considered to have been made
when the certificate


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                                                                    Exhibit 4.1


shall have been mailed, postage prepaid, to the optionee at the address
specified for that purpose in written notice from the optionee to the Company.

         11.  Transferability of Options to Permitted Transferees.

              (a)  The Committee may, in its discretion, permit an
         employee to transfer all or any portion of a Non-incentive
         Stock Option, or authorize all or a portion of any Non-
         incentive Stock Option to be granted to an employee to be
         on terms which permit transfer by such employee, to (i) his
         spouse, children or grandchildren ("Immediate Family
         Members"), (ii) a trust or trusts for the exclusive benefit
         of such Immediate Family Members, or (iii) a partnership in
         which such Immediate Family Members are the only partners
         (collectively, "Permitted Transferees"); provided that (x)
         there may be no consideration for any such transfer and (y)
         subsequent transfers of Options transferred as provided
         above shall be prohibited except subsequent transfers back
         to the original employee-holder of the Non-incentive Stock
         Option and transfers to other Permitted Transferees of the
         original employee-holder. Options evidencing Non-incentive
         Stock Options with respect to which such transferability is
         authorized at the time of grant must be approved by the
         Committee, and must expressly provide for transferability in
         a manner consistent with this Subsection 11(a)

              (b)  Other Transfers. Except as expressly permitted by
         subsection 11(a), Options requiring exercise shall not be
         transferable other than by will or the laws of descent and
         distribution or pursuant to domestic relations orders.

              (c)  Effect of Transfer. Following the transfer of any
         Non-incentive Stock Option as contemplated by Subsection
         11(a) and 11(b), (i) such Option shall continue to be
         subject to the same terms and conditions as were applicable
         immediately prior to transfer, provided that the term
         "employee" shall be deemed to refer to the Permitted
         Transferee or the estate or heirs of a deceased employee, as
         applicable, to the extent appropriate to enable the holder
         to exercise the transferred Option in accordance with the
         terms of the Plan and applicable law and (ii) the provisions
         of the Plan shall continue to be applied with respect to the
         original employee and, following the occurrence of any such
         events described therein the Options shall be exercisable by
         the Permitted Transferee or the estate or heirs of a deceased
         holder, as applicable, only to the extent and for the periods
         specified.

              (d)  Procedures and Restrictions. Any employee desiring
         to transfer a Non-incentive Stock Option as permitted under
         Subsection 11(a) shall make application therefor to the
         Committee and shall comply with such other requirements as
         the Committee may require to assure compliance with all
         applicable securities laws. The Committee shall not give
         permission for such a transfer if (i) it would give rise to
         short-swing liability under Section 16(b) of the Exchange
         Act, or (ii) it may not be made in compliance with all
         applicable federal, state and foreign securities laws.

              (e)  Registration. To the extent the issuance to any
         Permitted Transferee of any shares of Stock issuable
         pursuant to Non-incentive Stock Options transferred as
         permitted in this Section is not registered pursuant to the
         effective registration statement of the Company generally
         covering the shares to be issued pursuant to the Plan to
         initial holders of Options, the Company shall not have any
         obligation to register the issuance of any such shares of
         stock to any such transferee.

         12.  Termination of Employment or Death of Optionee. Except as may be
otherwise expressly provided herein, each Option, to the extent it shall not
previously have been exercised, shall terminate on the earlier of the date of
the expiration of the Option or one day less than three months after the date of
the severance of the employment relationship between the Company and the
optionee, whether with or without cause, for any reason other than the death or
disability of the optionee, during which period the optionee shall be entitled
to exercise the Option in respect of the number of shares that the optionee
would have been entitled to purchase had the optionee exercised the Option on
the date of severance of employment. Whether authorized leave of absence, or
absence on military or government service,


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                                                                    Exhibit 4.1


shall constitute severance of the employment relationship between the Company
and the optionee shall be determined by the Committee at the time thereof.

         In the event of severance because of the disability of the holder of
any Option while in the employ of the Company and before the date of expiration
of the Option, the Option shall terminate on the earlier of the date of
expiration or one day less than one year following the date of severance because
of disability, during which period the optionee shall be entitled to exercise
the Option in respect of the number of shares that the optionee would have been
entitled to purchase had the optionee exercised the Option on the date of
severance because of disability.

         In the event of the death of the holder of any Option while in the
employ of the Company and before the date of expiration of the Option, the
Option shall terminate on the earlier of the date of expiration or one day less
than one year following the date of death. After the death of the optionee, the
executors, administrators or any person or persons to whom the Option was
transferred by will or by the laws of descent and distribution, shall have the
right, at any time prior to the expiration of an Option, to exercise the Option
in whole or in part, without regard to any limitation the optionee would have
been subject to had he exercised the Option on the day of his death while in
employment.

         An employment relationship between the Company and the optionee shall
be deemed to exist during any period in which the optionee is employed by the
Company, by any parent or subsidiary corporation, by a corporation issuing or
assuming a common stock option in a transaction to which Section 424(a) of the
Code applies, or by a parent or subsidiary corporation of the corporation
issuing or assuming a stock option (and for this purpose, the phrase
"corporation issuing or assuming a stock option" shall be substituted for the
word "Company" in the definitions of parent and subsidiary corporations
specified in Paragraph 5 of this Plan, and the parent-subsidiary relationship
shall be determined at the time of the corporate action described in Section
424(a) of the Code).

         13.  Requirements of Law. The Company shall not be required to sell or
issue any shares under any Option or Stock Award if the issuance of those shares
would constitute a violation by the optionee, recipient, or the Company of any
provisions of any law or regulation of any governmental authority. Each Option
and Stock Award granted under the Plan shall be subject to the requirements
that, if at any time the Board or the Committee shall determine that the
listing, registration or qualification of the shares subject thereto upon any
securities exchange or under any state or federal law of the United States or of
any other country or governmental subdivision thereof, or the consent or
approval of any governmental regulatory body, or investment or other
representations, are necessary or desirable in connection with the issue or
purchase of shares subject thereto, no Option may be exercised in whole or in
part, or Stock Award issued, unless the listing, registration, qualification,
consent, approval or representations shall have been effected or obtained free
of any conditions not acceptable to the Board. If required at any time by the
Board or the Committee, an Option may not be exercised or a Stock Award issued
until the optionee or recipient has delivered an investment letter to the
Company. In addition, specifically in connection with the Securities Act of 1933
(as now in effect or hereafter amended) (the "1933 Act"), upon exercise of any
Option or entitlement to a Stock Award, the Company shall not be required to
issue the underlying shares unless the Committee has received evidence
satisfactory to it to the effect that the holder of the Option or Stock Award
will not transfer the shares except pursuant to a registration statement in
effect under the 1933 Act or unless an opinion of counsel satisfactory to the
Committee has been received by the Company to the effect that registration is
not required. Any determination in this connection by the Committee shall be
final, binding and conclusive. In the event the shares issuable on exercise of
an Option or pursuant to a Stock Award are not registered under the 1933 Act,
the Company may imprint on the certificate for the shares the following legend
or any other legend which counsel for the Company considers necessary or
advisable to comply with the 1933 Act:

         The shares of stock represented by this certificate have not
         been registered under the Securities Act of 1933 or under
         the securities laws of any state and may not be sold or
         transferred except upon such registration or upon receipt by
         the Corporation of an opinion of counsel satisfactory to the
         Corporation, in form and substance satisfactory to the
         Corporation, that registration is not required for such sale
         or transfer.

The Company may, but shall not be obligated to, register any securities covered
hereby pursuant to the 1933 Act (as now in effect or as hereafter amended) and,
in the event any shares are registered, the Company may remove any legend on


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                                                                    Exhibit 4.1


certificates representing these shares. The Company shall not be obligated to
take any other affirmative action in order to cause the exercise of an Option or
the issuance of shares pursuant thereto or pursuant to a Stock Award to comply
with any law or regulation of any governmental authority.

         14.  No Rights as Shareholder. No optionee shall have rights as a
shareholder with respect to shares covered by an Option until the date of
issuance of a stock certificate for the shares; and, except as otherwise
provided in Paragraph 18 hereof, no adjustment for dividends, or otherwise,
shall be made if the record date therefor is prior to the date of issuance of
the certificate.

         15.  Restricted Stock Grants. The Committee may issue shares of Common
Stock to an eligible employee subject to the terms of a Restricted Stock Grant.
The shares may be issued for no payment by the employee or for a payment below
the fair market value on the date of grant. Restricted Stock shall be subject to
restrictions as to sale or other transfer and generally will be subject to
vesting over a period of time specified in the Restricted Stock Grant. The
Committee shall determine the number of shares and the price, if any, at which
shares of Restricted Stock will be granted.

         Restricted Stock shall be subject to the following terms and conditions
as determined by the Committee, including without limitation any or all of the
following:

              (a)  a prohibition against the sale, transfer, pledge
         or other encumbrance of the shares of Restricted Stock, such
         prohibition to lapse (i) at such time or times as the
         Committee shall determine (whether in annual or more
         frequent installments, at the time of the death, disability
         or retirement of the holder of such shares, or otherwise);

              (b)  a requirement that the holder of shares of
         Restricted Stock forfeit, or in the case of shares sold to a
         Participant, resell back to the Company at his cost, all or
         a part of such shares in the event of termination of the
         holder's employment during any period in which the shares
         remain subject to restrictions;

              (c)  a prohibition against employment of the holder of
         Restricted Stock by any competitor of the Company or its
         affiliates, or against such holder's dissemination of any
         secret or confidential information belonging to the Company
         or a subsidiary of the Company;

              (d)  unless stated otherwise in the Restricted Stock
         Grant, if restrictions remain at the time of severance of
         employment with the Company or a parent or subsidiary
         corporation, the Restricted Stock shall be forfeited;
         provided however, if severance of employment is by reason of
         disability or death, the restrictions on the shares shall
         lapse and the grantee or his heirs or estate shall be 100%
         vested in the shares subject to the Restricted Stock Grant.

         No holder of Restricted Stock shall exercise the election authorized by
Section 83(b) of the Code without the express written consent of the Committee
to this election. Any grantee of Restricted Stock making this election without
the consent of the Committee shall forfeit all shares of Restricted Stock
granted to him.

         Shares of Restricted Stock shall be registered in the name of the
grantee and deposited, together with a stock power endorsed in blank, with the
Company. Each such certificate shall bear a legend in substantially the
following form:

         The transferability of this certificate and the shares of
         Common Stock represented by it are subject to the terms and
         conditions (including conditions of forfeiture) contained in
         The Coastal Corporation 1998 Incentive Stock Plan, and an
         agreement entered into between the registered owner and the
         Company. A copy of the Plan and agreement is on file in the
         office of the Secretary of the Company.


                                        7

<PAGE>

                                                                    Exhibit 4.1


         At the end of any time period during which the shares of Restricted
Stock are subject to forfeiture and restrictions on transfer, the shares will be
delivered free of all restrictions to the grantee or to the grantee's legal
representative, beneficiary or heir; provided the certificate shall bear such
legend, if any, as the Committee determines is reasonably required by applicable
law.

         Subject to the terms and conditions of the Plan, each grantee receiving
Restricted Stock shall have all the rights of a stockholder with respect to the
shares of Common Stock during any period in which such shares are subject to
forfeiture and restrictions on transfer, including without limitation, the right
to vote such shares. By accepting a Restricted Stock Grant, the grantee agrees
to remit when due any federal and state income and employment taxes required to
be withheld. Dividends paid in cash or property other than stock with respect to
shares of Restricted Stock shall be paid to the grantee currently.

         16.  Stock Awards.

              (a)  The Committee may grant Common Stock to an eligible
         employee under the Plan, without any payment by the employee,
         in lieu of certain cash compensation or as additional
         compensation. The Stock Award is subject to appropriate tax
         withholding. After compliance with the tax withholding
         requirements, a stock certificate shall be issued to the
         employee recipient of the Stock Award. The certificate shall
         bear such legend, if any, as the Committee determines is
         reasonably required by applicable law. Prior to receipt of a
         Stock Award, the employee must comply with appropriate
         requests of the Committee to assure compliance with all
         relevant laws.

              (b)  The Committee may award shares of Common Stock,
         without any payment for such shares, to designated employees
         if specified performance goals established by the Committee
         are satisfied. The terms and provisions herein relating to
         performance based Stock Awards are intended to satisfy
         Section 162(m) of the Code and regulations issued thereunder.
         The designation of an employee eligible for a specific
         performance based Stock Award shall be made by the Committee
         in writing prior to the beginning of the 12-month period for
         which the performance is measured. The Committee shall
         establish the number of shares to be issued to a designated
         employee if the performance goal is met; provided the maximum
         number of shares which may be issued to any one employee per
         year under this Paragraph 16 is 100,000 shares. The Committee
         must certify in writing that a performance goal has been met
         prior to issuance of any certificate for a performance based
         Stock Award to any employee. If the Committee certifies the
         entitlement of an employee to the performance based Stock
         Award, the certificate shall be issued to the employee as
         soon as administratively practicable, and subject to other
         applicable provisions of the Plan, including but not
         limited to, all legal requirements and tax withholding.

              Performance goals determined by the Committee may be
         based on specified increases in net profits, stock price,
         Company or segment sales, market share, earnings per share,
         and/or return on equity.

              The employees eligible for a performance based Stock
         Award are the senior officers (i.e., Vice President,
         Secretary, Treasurer, and above) of the Company and its
         subsidiaries.

         17.  Employment Obligation. The granting of any Option, Restricted
Stock Grant, or Stock Award shall not impose upon the Company any obligation to
employ or continue to employ any optionee or grantee; and the right of the
Company to terminate the employment of any officer or other employee shall not
be diminished or affected by reason of the fact that an Option, Restricted
Stock Grant or Stock Award, has been granted to him.

         18.  Changes in the Company's Capital Structure. The existence of
outstanding Options, Restricted Stock Grants, and Stock Awards shall not affect
in any way the right or power of the Company or its shareholders to make or
authorize any or all adjustments, recapitalizations, reorganizations or other
changes in the Company's capital structure


                                        8

<PAGE>

                                                                    Exhibit 4.1


or its business, or any merger or consolidation of the Company, or any issue of
bonds, debentures, preferred or prior preference stock ahead of or affecting the
Common Stock or the rights thereof, or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or business,
or any other corporate act or proceeding, whether of a similar character or
otherwise.

         If the Company shall effect a subdivision or consolidation of shares or
other capital readjustment, the payment of a dividend in capital stock or other
equity securities of the Company on, its Common Stock, or other increase or
reduction of the number of shares of the Common Stock outstanding, without
receiving consideration therefor in money, services, or property, or the
reclassification of its Common Stock, in whole or in part, into other equity
securities of the Company, then (a) the number, class and per share price of
shares of Common Stock subject to outstanding Options, Restricted Stock Grants,
and Stock Awards hereunder shall be appropriately adjusted (or in the case of
the issuance of other equity securities as a dividend on, or in a
reclassification of, the Common Stock, the Options, Restricted Stock Grants, and
Stock Awards shall extend to such other securities) in a manner so as to entitle
an optionee or a grantee to receive, upon exercise of an Option, for the same
aggregate cash consideration, and for the vesting of Restricted Stock, and award
of pending performance based Stock Awards, the same total number and class or
classes of shares (or in the case of a dividend of, or reclassification into,
other equity securities, those other securities) he would have held after
adjustment if he had exercised his Option, or the Restricted Stock was vested in
full, or the Stock Award was earned, immediately prior to the event requiring
the adjustment, or, if applicable, the record date for determining shareholders
to be affected by the adjustment; and (b) the number and class of shares then
reserved for issuance under the Plan (or in the case of a dividend of, or
reclassification into, other equity securities, those other securities) shall be
adjusted by substituting for the total number and class of shares of stock then
reserved, the number and class or classes of shares of stock (or in the case of
a dividend of, or reclassification into, other equity securities, those other
securities) that would have been received by the owner of an equal number of
outstanding shares of Common Stock as a result of the event requiring the
adjustment. Comparable rights shall accrue to each optionee or employee in the
event of successive subdivisions, consolidations, capital adjustments, dividends
or reclassifications of the character described above.

         After a merger of one or more corporations into the Company, after any
consolidation of the Company and any one or more corporations, or after any
other corporate transaction described in Section 424(a) of the Code in which the
Company shall be the surviving corporation, each optionee, at no additional
cost, shall be entitled to receive (subject to any required action by
stockholders), upon any exercise of his Option, in lieu of the number of shares
as to which the Option shall then be exercisable, the number and class of shares
of stock or other securities to which the holder would have been entitled
pursuant to the terms of the agreement of merger or consolidation, if,
immediately prior to such merger or consolidation, such holder had been the
holder of a number of shares of Common Stock equal to the number of shares as to
which the Option shall then be exercised and, if as a result of the merger,
consolidation or other transaction, the holders of Common Stock are not entitled
to receive any shares of Common Stock pursuant to the terms thereof, each
optionee, at no additional cost, shall be entitled to receive, upon exercise of
his Option, other assets and property, including cash, to which he would have
been entitled if at the time of such merger, consolidation or other transaction
he had been the holder of the number of shares of Common Stock equal to the
number of shares as to which the Option shall then be exercised. Comparable
rights shall accrue to each optionee in the event of successive mergers or
consolidations of the character described above. Appropriate adjustments shall
also be made to shares of Restricted Stock and to pending Stock Awards.

         If the Company is merged into or consolidated with another corporation
under circumstances where the Company is not the surviving corporation, or if
the Company is liquidated, or sells or otherwise disposes of substantially all
its assets to another corporation while unexercised Options remain outstanding
under the Plan, (i) subject to the provisions of clause (iii) below, after the
effective date of such merger, consolidation or sale, as the case may be, each
holder of an outstanding Option shall be entitled, upon exercise of such Option,
to receive in lieu of shares of Common Stock, shares of such stock or other
securities as the holders of shares of Common Stock received pursuant to the
terms of the merger, consolidation or sale; (ii) the Board may waive any
limitations set forth in or imposed pursuant to Paragraph 9 hereof so that all
Options from and after a date prior to the effective date of such merger,
consolidation, liquidation or sale, as the case may be, specified by the Board
shall be exercisable in full; and (iii) all outstanding Options may be canceled
by the Board as of the effective date of any such merger, consolidation,
liquidation or sale provided that (x) notice of such cancellation shall be given
to each holder of an Option and (y) each holder of an Option shall have the
right to exercise such Option in full (without regard to any limitations set
forth in or imposed pursuant to Paragraph


                                        9

<PAGE>

                                                                    Exhibit 4.1


9 hereof) during a 30-day period preceding the effective date of such merger,
consolidation, liquidation, sale or acquisition.

         Except as hereinbefore expressly provided, the issue by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, for cash or property, or for labor or services either upon direct
sale or upon the exercise of rights or warrants to subscribe therefor, or upon
conversion of shares or obligations of the Company convertible into such shares
or other securities, shall not affect, and no adjustment by reason thereof shall
be made with respect to, the number or price of shares of Common Stock then
subject to outstanding Options, Restricted Stock Grants, or Stock Awards.

         19.  Substitution Options. Options may be granted under the Plan from
time to time in substitution for stock options held by employees of other
corporations who are about to become employees of the Company, or whose employer
is about to become a parent or subsidiary corporation of the Company, as a
result of the merger or consolidation of the Company with another corporation,
or the acquisition by the Company of substantially all the assets of another
corporation, or the acquisition by the Company of at least 50% of the issued and
outstanding stock of another corporation as the result of which it becomes a
subsidiary of the Company, conditioned in the case of an Incentive Stock Option
upon the employee being an employee of the Company or a parent or subsidiary
corporation of the Company. The terms and conditions of the substitute Options
granted may vary from the terms and conditions set forth in the Plan to the
extent the Board at the time of grant may deem appropriate to conform, in whole
or in part, to the provisions of the stock options in substitution for which
they are granted, but with respect to stock options which are incentive stock
options, no variation shall be such as to affect the status of any substitute
option as an incentive stock option under Section 422 of the Code.

         20.  Amendment or Termination of Plan. The Board may modify, revise or
terminate the Plan at any time and from time to time; provided, however, that
without the further approval by the affirmative vote of a majority of the votes
cast attributable to shares present in person or by proxy and entitled to vote
at a meeting of shareholders or by written consent, or if the provisions of the
corporate charter, bylaws or applicable state law prescribes a greater degree of
shareholder approval for this action, without the degree of shareholder approval
thus required, the Board may not (a) change the aggregate number of shares which
may be issued under Options, Restricted Stock Grants, and Stock Awards pursuant
to the provisions of the Plan, (b) extend the term during which an Option,
Restricted Stock Grant, or Stock Award may be exercised or granted or the
termination date of the Plan, (c) change the class of employees eligible to
receive Options, Restricted Stock Grants, or Stock Awards under the Plan, or (d)
reduce the Option Price; unless, in each such case, the Board shall obtain an
opinion of legal counsel to the effect that shareholder approval of the
amendment is not required (i) by law, (ii) by the applicable rules and
regulations of, or any agreement with, any national securities exchange on which
the Common Stock is then listed or if the Common Stock is not so listed, the
rules and regulations, or any agreement with, the National Association of
Securities Dealers, Inc., and (iii) in order to make available to the optionee
with respect to any option granted under the Plan, the benefits of Rule 16b-3 of
the Rules and Regulations under the Exchange Act, or any similar or successor
rule. In addition, the Board shall have the power to make changes in the Plan
and in the regulations and administrative provisions hereunder or in any
outstanding Option as in the opinion of counsel for the Company may be necessary
or appropriate from time to time to enable any Option granted pursuant to the
Plan to qualify as an Incentive Stock Option under Section 422 of the Code, and
the regulations which may be issued thereunder as in existence from time to
time.

         21.  Forfeitures. Notwithstanding any other provisions of this Plan,
if the Committee finds by a majority vote after full consideration of the facts
that the employee, before or after termination of his employment with the
Company or its subsidiaries for any reason (a) committed or engaged in fraud,
embezzlement, theft, commission of a felony, or proven dishonesty in the course
of his employment by the Company or its subsidiaries, which conduct damaged the
Company or its subsidiaries, or disclosed trade secrets of the Company or its
subsidiaries, or (b) participated, engaged in or had a financial or other
interest, whether as an employee, officer, director, consultant, contractor,
shareholder, owner, or otherwise, in any commercial endeavor in the United
States which is competitive with the business of the Company or its subsidiaries
without the written consent of the Company or its subsidiaries, the employee
shall forfeit all outstanding Options and Restricted Stock which is not fully
vested, including all rights related to such matters, and including all
unexercised Options, exercised Options, and any performance based Stock Awards
to which he may be


                                       10

<PAGE>

                                                                    Exhibit 4.1


entitled, and other elections pursuant to which the Company has not yet
delivered a stock certificate. Clause (b) shall not be deemed to have been
violated solely by reason of the employee's ownership of stock or securities of
any publicly owned corporation, if that ownership does not result in effective
control of the corporation.

         The decision of the Committee as to the cause of the employee's
discharge, the damage done to the Company or its subsidiaries, and the extent of
the employee's competitive activity shall be final. No decision of the
Committee, however, shall affect the finality of the discharge of the employee
by the Company or its subsidiaries in any manner. To provide the Company with an
opportunity to enforce this Section, no certificate for Stock may be issued
under this Plan without the certification by the Committee that no action
forbidden by this provision has been raised for their determination.

         22.  Tax Withholding. The Company or any parent or subsidiary shall be
entitled to deduct from other compensation payable to each employee any sums
required by federal, state, or local tax law to be withheld with respect to the
grant, exercise, or vesting, as appropriate, of an Option, Restricted Stock
Grant, or Stock Award. In the alternative, the Company may require the employee
(or other person exercising the Option, or receiving the Restricted Stock or
Stock Award) to pay the sum directly to the employer corporation. If the
employee (or other person) is required to pay the sum directly, payment in cash
or by check of such sums for taxes shall be delivered within five (5) days after
the date of exercise. The Company shall have no obligation upon exercise of any
Option, vesting of Restricted Stock or issuance of a Stock Award until payment
has been received, unless withholding (or offset against a cash payment) as of
or prior to the date of exercise is sufficient to cover all sums due with
respect to that exercise or vesting. The Company shall not be obligated to
advise an employee of the existence of the tax or the amount which the employer
corporation will be required to withhold.

         23.  Written Agreement. Each Option, Restricted Stock Grant, and Stock
Award granted hereunder shall be embodied in a written agreement, which shall be
subject to the terms and conditions prescribed herein, and shall be signed by
the optionee or grantee and by an appropriate officer of the Company for and in
the name and on behalf of the Company. Each agreement shall contain other
provisions which the Committee in its discretion shall deem advisable.

         24.  Indemnification of Committee. The Company shall, to the fullest
extent provided by law, indemnify each present and future member of the
Committee against, and each member of the Committee shall be entitled without
further act on his part to indemnity from the Company for all expenses
(including the amount of judgments and the amount of approved settlements made
with a view to the curtailment of costs of litigation, other than amounts paid
to the Company itself) reasonably incurred by him in connection with or arising
out of any action, suit or proceeding in which he may be involved by reason of
his being or having been a member of the Committee, whether or not he continues
to be a member of the Committee at the time of incurring such expenses;
provided, however, that such indemnity shall not include any expenses incurred
by any such member of the Committee (a) in respect of matters as to which he
shall be finally adjudged in any such action, suit or proceeding to have been
guilty of gross negligence or willful misconduct in the performance of his duty
as such member of the Committee, or (b) in respect of any matter in which any
settlement is effected, to an amount in excess of the amount approved by the
Company on the advice of its legal counsel; and provided further, that no right
of indemnification under the provisions set forth herein shall be available to
or enforceable by any such member of the Committee unless, within sixty (60)
days after institution of any such action, suit or proceeding, he shall have
offered the Company, in writing, the opportunity to handle and defend same at
its own expense. The foregoing right of indemnification shall inure to the
benefit of the heirs, executors or administrators of each member of the
Committee and shall be in addition to all other rights to which the member of
the Committee may be entitled as a matter of law, contract, or otherwise.

         25.  Effective Date of Plan. The Plan shall become effective and shall
be deemed to have been adopted on March 19, 1998, if within one year of that
date it shall have been approved by the affirmative vote of a majority of the
votes cast attributable to shares present in person or by proxy and entitled to
vote at a meeting of shareholders, or if the provisions of the corporate
charter, bylaws or applicable state law prescribes a greater degree of
shareholder approval for this action, the approval by the holders of that
percentage, at a meeting of shareholders. No Option, Restricted Stock Grant, or
Stock Award shall be granted pursuant to the Plan after March 18, 2008.


                                       11