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                                                                    EXHIBIT 10.W

                                  June 16, 1999

Mr. Ralph Eads
333 Little John
Houston, Texas 77024

Dear Ralph:

         This letter is intended to memorialize our recent discussions regarding
your employment by El Paso Energy Corporation. You would commence employment on
July 1, 1999 as an Executive Vice President with operating responsibilities over
El Paso Energy Marketing and El Paso Energy's Exploration and Production
business, soon to be acquired as part of the Sonat transaction. Your
compensation terms will be as follows:

         1.       Base Salary - $ 500,000 per year.

         2.       Bonus - currently a maximum opportunity of up to 150% of base
                  salary with a matching risk premium if bonus is taken in
                  restricted shares, to be determined by the Compensation
                  Committee.

         3.       Perk Allowance - $36,000 per year.

         4.       A cash sign-on bonus equal to one million five hundred
                  thousand dollars ($1,500,000), to be paid not later than
                  November 30, 1999.

         5.       Performance Units (to be issued after the closing of the Sonat
                  transaction) - 15,000 valued at $0-150 per unit based on El
                  Paso Energy's total shareholders' return vis-a-vis its peers,
                  and subject to the terms and conditions established by the
                  Compensation Committee and as set forth on the grant letter.

         6.       Stock Options: 650,000 nonqualified stock options, subject to
                  the terms and conditions to be established by the Compensation
                  Committee and as set forth on the grant letter.

         7.       Restricted common stock: 75,000 shares of restricted Company
                  common stock, subject to the terms and conditions to be
                  established by the Compensation Committee and as set forth on
                  the grant letter.

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Mr. Ralph Eads
June 16, 1999
Page 2

         8.       On January 1, 2000, a memorandum account with a credit will be
                  established under (and subject to the terms of) the Company's
                  Deferred Compensation Plan in the amount of two million
                  dollars ($2,000,000), to be distributed to you in five annual
                  installments beginning in January 2001. Each payment shall be
                  made by January 31st of each year.

         You will, of course, be eligible to participate in the medical as well
as other qualified benefit plans and you will be accorded perquisites and
privileges per your status as a Senior Executive of El Paso Energy Corporation.

         This employment opportunity is of indefinite duration and will continue
as long as both you and El Paso Energy consider it of mutual benefit. Either you
or El Paso Energy may terminate the employment relationship at will and at any
time.

         In the near future, you will receive further information explaining, in
depth, the annual bonus plan, the restricted stock plan and option plan, as well
as other pertinent programs that you will be eligible to participate in as a
senior executive of El Paso Energy Corporation.

                                       Sincerely,

                                       /s/ Bill

                                       Accepted by:

                                       /s/ Ralph Eads
                                           6/20/99<PAGE>   1

                                                                   EXHIBIT  10.X

                      TERMINATION AND CONSULTING AGREEMENT

                  This Termination and Consulting Agreement by and among El Paso
Energy Corporation, a Delaware corporation (the "Company"), and Ronald L. Kuehn,
Jr. (the "Executive") is dated as of the 25th day of October, 1999.

                  WHEREAS, the Executive and Sonat Inc., a Delaware Corporation
("Sonat") are parties to an Executive Severance Agreement dated as of July 23,
1998 (the "Severance Agreement"), and the Executive is entitled to various
benefits under employee benefit and compensation plans, programs and policies of
Sonat (collectively, the "Employee Benefits"); and

                  WHEREAS, pursuant to an Agreement and Plan of Merger, dated as
of March 13, 1999 (the "Merger Agreement"), by and between El Paso Energy
Corporation ("Parent") and Sonat, Parent and Sonat will undergo a business
combination (the "Merger"); and

                  WHEREAS, it is acknowledged by the parties hereto that as a
result of the consummation of the Merger and the other transactions contemplated
by the Merger Agreement, as of the Effective Time (as defined in the Merger
Agreement), the Severance Agreement shall have become effective and the
Executive will have experienced an event described in Section 2(b) of the
Severance Agreement, as a result of which he will have the right to terminate
his employment and receive severance pay and benefits pursuant to Section 3 of
the Severance Agreement; and

                  WHEREAS, the Company has determined that it is in the best
interests of its shareholders to set forth, and the Executive has agreed to set
forth, their mutual agreement as to the rights and entitlements of the Executive
under the Severance Agreement and the Employee Benefits from and after the
Effective Time and to provide for the continuing availability to the Company of
the Executive's services and expertise following the Effective Time, all on the
terms and conditions set forth below;

                  NOW, THEREFORE, it is hereby agreed as follows:

                  1. Termination of Employment. (a) The Executive shall retire
from his employment with Sonat immediately after the Effective Time. It is
acknowledged and agreed that such retirement will constitute a termination of
his employment pursuant to Section 2(b) of the Severance Agreement, with the
result that the Executive shall be entitled to the payments and benefits set
forth in Section 3 of the Severance Agreement, and consistent with the
understandings set forth in the memorandum and attachments thereto attached to
this Agreement as Exhibit A. The date of such termination of employment is
hereinafter referred to as the "Date of Termination."

                  2. Employee Benefits. The Company acknowledges that for
purposes of the Employee Benefits, the Executive shall be considered to have
taken "early retirement" effective as of the Date of Termination.

                  3. Post-Merger Services. (a) The Company shall cause the
Executive to be nominated to its Board of Directors (the "Board") beginning as
of the Effective Time for a term or terms
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extending until the date of the Executive's retirement from the Board pursuant
to the Company's Board of Directors retirement policy (such date, the "Board
Retirement Date"). From the Effective Time until December 31, 2000, he shall
serve as the Non-Executive Chairman thereof.

                  (b) From the Date of Termination through December 31, 2000, or
such shorter period as may be provided pursuant to Section 5(a) or (b) below
(the "Initial Term"), in consideration for the compensation and benefits
provided for below, the Executive shall make himself available to the Company,
at mutually convenient times and places, for such consulting services as may be
requested by the Board or the Chief Executive Officer of the Company, in
connection with long-range planning, strategic direction, and integration and
rationalization matters, and shall work with the Chief Executive Officer and
senior management of the Company with respect to matters to be presented to the
Board; provided that, the Executive shall be based, and shall perform the
predominant amount of his consulting services, in Birmingham, Alabama. From
December 31, 2000 until the Board Retirement Date (the "Subsequent Term"), the
Executive's duties shall be the same as those of other non-employee members of
the Board and the Executive Committee thereof.

                  4. Compensation and Benefits. (a) The Company shall pay the
Executive a fee (the "Fee") of $20,834 per month (or fraction thereof), payable
monthly in advance, during the Initial Term. In addition, during the Initial
Term, the Executive shall continue to be entitled to such other perquisites
(including expense reimbursement and transportation) as are made available to
senior executive officers of Sonat in accordance with Sonat's policies and
practices prevailing as of the date of this Agreement. Without limiting the
generality of the foregoing, during the Initial Term, the Executive shall have
the use of the corporate aircraft owned by the Company and its subsidiaries, at
least one of which shall remain based in Birmingham, Alabama, on the same terms
and conditions as he is currently permitted to use corporate aircraft owned by
Sonat.

                  (b) In addition to the other compensation and benefits
provided for under this Agreement, during the Initial Term and the Subsequent
Term, (i) the Executive shall receive the same compensation and benefits, other
than cash director fees, as other non-employee members of the Board and the
Executive Committee thereof, and (ii) the Company shall pay the Executive's
country club dues to the same extent and on the same terms and conditions as
Sonat currently pays such dues.

                  (c) The Company shall provide retiree medical coverage to the
Executive and his spouse from the Date of Termination and for the remainder of
their respective lives, and to the Executive's children so long as they remain
eligible, on terms and conditions no less favorable than those in effect under
the Company's Retiree Medical Plan for Post-1993 Retirees for individuals who
are, as of the Effective Time, receiving or eligible to receive such coverage
under such plan. In addition, from the Date of Termination and for the remainder
of the Executive's life, the Company shall pay all life insurance premiums under
Sonat's Executive Life Insurance Program under policy number 902715088U
sufficient to maintain such insurance in effect in an amount not less than four
times his base pay as in effect immediately before the Date of Termination.

                  (d) From the Date of Termination and for the remainder of the
Executive's life, the Company shall (i) provide the Executive with office space
and a parking space and appropriate equipment and support services (including,
without limitation, phones and computer support)
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and (ii) shall employ, and shall provide the Executive with the full-time
secretarial services of, Sue Bolden, his current executive assistant or, if Mrs.
Bolden voluntarily ceases to be an employee of the Company, with the full-time
services of another executive secretary of comparable qualifications employed by
the Company and loaned to the Executive. Such office space shall consist of the
office suite formerly occupied by John S. Shaw, Jr., on the 20th floor of the
AmSouth-Sonat Tower, and such parking space shall be the parking space currently
designated for the Executive, in each case except to the extent otherwise agreed
upon by the Executive and the Company; provided, that, in the event the Company
and its subsidiaries cease to own or lease space in the AmSouth-Sonat Tower, the
Company shall provide other comparable office space and another comparable
parking space reasonably acceptable to the Executive. During her employment with
the Company pursuant to the foregoing, Mrs. Bolden shall receive an annual
salary at least equal to her present salary, increased as of each anniversary of
the Date of Termination to reflect increases as necessary to provide her with
increases at least equal, on a percentage basis, to the increases provided to
similarly situated executive secretaries of the Company and shall receive the
benefits, including retirement benefits with appropriate service credit for her
service with Sonat, required by the Merger Agreement for Continuing Company
Employees (as defined in the Merger Agreement). In addition, if and to the
extent that the Executive recognizes taxable income as a result of the provision
of the space and services set forth above, the Company shall make cash payments
to the Executive not later than 10 business days before the date on which the
Executive becomes obligated to make any resulting payment of tax (including
without limitation federal, state and local income taxes and payments of
estimated taxes) sufficient to make the Executive whole, on a net after-tax
basis taking into account the tax on such cash payments, for such tax.

                  (e) The Executive's status during the Initial Term shall be
that of an independent contractor and not, for any purpose, that of an employee
or agent with authority to bind the Company in any respect. All payments and
other consideration made or provided to the Executive under this Section 4 shall
be made or provided without withholding or deduction of any kind, and the
Executive shall assume sole responsibility for discharging, all tax or other
obligations associated therewith.

                  5. Termination. (a) If the Executive should die or become
permanently disabled before December 31, 2000, the Initial Term shall end on the
date of such death or permanent disability, and the Company shall pay to the
Executive's estate or to the Executive or his legal guardian, as applicable, any
portion of the Fee that has accrued but remains unpaid.

                  (b) The Company may terminate the Initial Term for Cause, in
which event no further payments of the Fee shall be made. For purposes of this
Agreement, "Cause" shall mean the Executive's dishonesty, commission of a felony
or willful unauthorized disclosure of confidential information of the Company
and its subsidiaries. For purposes of this Section 5(b), no act or failure to
act, on the part of the Executive, shall be considered "willful" unless it is
done, or omitted to be done, by the Executive in bad faith or without reasonable
belief that the Executive's action or omission was in the best interests of the
Company and its subsidiaries. Any act, or failure to act, based upon authority
given pursuant to a resolution duly adopted by the Board or based upon the
advice of counsel for the Company shall be conclusively presumed to be done, or
omitted to be done, by the Executive in good faith and in the best interests of
the Company and its subsidiaries. The Initial Term shall not be terminated for
Cause unless and until there shall
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have been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of the
Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding that,
in the good faith opinion of the Board, the Executive is guilty of the conduct
described in the second sentence of this Section 5(b), and specifying the
particulars thereof in detail.

                  6. Indemnification; Legal Fees. The Company agrees to
indemnify, protect, defend and hold the Executive and his estate, heirs, and
personal representatives, harmless from and against any actual or threatened
action, suit or proceeding, whether civil, criminal, administrative or
investigative (hereinafter a "proceeding"), and all losses, liabilities, damages
and expenses, including reasonable attorney's fees incurred by counsel
reasonably designated or approved by him, in connection with this Agreement or
his services hereunder, provided that any consulting services giving rise to
such indemnification shall have been performed by the Executive in good faith
and, to the best of his knowledge, in a lawful manner. The Company shall pay or
reimburse the Executive for all costs and expenses, including, without
limitation, court costs and attorneys' fees, incurred by the Executive as a
result of any claim, action or proceeding (including, without limitation, a
claim, action or proceeding by the Executive against the Company arising out of,
or challenging the validity or enforceability of, this Agreement or any
provision hereof) and shall advance such expenses if the Executive undertakes to
repay such amounts if it is ultimately determined that the Executive is not
entitled to be indemnified under Delaware law.

                  7. Successors. (a) This Agreement is personal to the Executive
and without the prior written consent of the Company shall not be assignable by
the Executive otherwise than by will or the laws of descent and distribution.
This Agreement shall inure to the benefit of and be enforceable by the
Executive's legal representatives.

                  (b) This Agreement shall inure to the benefit of and be
binding upon the Company and its respective successors and assigns.

                  (c) The Company shall require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of its respective businesses and/or assets to assume expressly
and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform it if no such succession had taken
place. As used in this Agreement, the "Company" shall mean the Company, as
hereinbefore defined and any successor to their respective businesses and/or
assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

                  8. Miscellaneous. (a) This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect. This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

                  (b) All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:
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                  If to the Executive:

                  Ronald L. Kuehn, Jr.
                  2813 Shook Hill Circle
                  Birmingham, AL  35223

                  If to the Company:

                  El Paso Energy Corporation
                  El Paso Energy Building
                  1001 Louisiana Street
                  Houston, Texas 77002

                  Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

                  (c) The invalidity or unenforceability of any provision (or
portion thereof) of this Agreement shall not affect the validity or
enforceability of any other provision (or portion thereof) of this Agreement.

                  (d) From and after the Effective Time, this Agreement shall
supersede any other agreement between the parties with respect to the subject
matter hereof, except that the Severance Agreement shall remain in full force
and effect, without amendment. This Agreement shall be null and void, ab initio,
and of no further effect if the Merger Agreement is terminated before the
Effective Time.

                  (e) This Agreement may be executed in several counterparts,
each of which shall be deemed an original, and said counterparts shall
constitute but one and the same instrument.
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                  IN WITNESS WHEREOF, the Executive has hereunto set the
Executive's hand and, pursuant to the authorization from its Board of Directors,
the Company has caused this Agreement to be executed in its name on its behalf,
all as of the day and year first above written.

                                                  /s/ Ronald L. Kuehn, Jr.
                                             -----------------------------------
                                                      Ronald L. Kuehn, Jr.

                                             El PASO ENERGY CORPORATION

                                             By      /s/ William A. Wise
                                               ---------------------------------
                                             Name: William A. Wise
                                             Title: President and Chief
                                                    Executive Officer

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