Document:

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                                                                    EXHIBIT 10.M

                               EL PASO CORPORATION

                           DEFERRED COMPENSATION PLAN

               AMENDED AND RESTATED EFFECTIVE AS OF JUNE 13, 2002

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                                TABLE OF CONTENTS

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<S>                                                                                                            <C>
SECTION 1         PURPOSE........................................................................................1
         1.1      Purpose........................................................................................1

SECTION 2         ADMINISTRATION.................................................................................1
         2.1      Management Committee...........................................................................1

SECTION 3         PARTICIPANTS...................................................................................1
         3.1      Participants...................................................................................1

SECTION 4         DEFERRALS......................................................................................2
         4.1      Eligible Compensation..........................................................................2
         4.2      Deferred Payment of Base Salary................................................................2
         4.3      Deferred Payment of Cash Incentive Awards......................................................3
         4.4      Deferred Payment for Performance Units.........................................................3
         4.5      Deferred Payment for Equity Awards.............................................................3
         4.6      Deferred Payment for Amounts Awarded Under Other Plans.........................................4
         4.7      Memorandum Account and Subaccounts.............................................................4
         4.8      Prior Deferrals................................................................................5
         4.9      Payment of Deferred Eligible Compensation......................................................5
         4.10     Acceleration of Payment of Deferred Eligible Compensation......................................6
         4.11     Provisions Regarding Former Sonat Employees....................................................6
         4.12     Provisions Regarding Former Coastal Employees..................................................8

SECTION 5         GENERAL PROVISIONS............................................................................11
         5.1      Unfunded Obligation...........................................................................11
         5.2      Discretionary Investment by Company...........................................................11
         5.3      Beneficiary...................................................................................11
         5.4      Permanent Disability..........................................................................12
         5.5      Incapacity of Participant or Beneficiary......................................................12
         5.6      Nonassignment.................................................................................12
         5.7      No Right to Continued Employment..............................................................12
         5.8      Withholding Taxes.............................................................................12
         5.9      Termination and Amendment.....................................................................13
         5.10     Applicable Law................................................................................13
         5.11     Compliance with Securities Laws...............................................................13
         5.12     Source of Common Stock and Adjustments........................................................13
         5.13     Regulatory Approvals and Listing..............................................................14
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El Paso Corporation                    -i-                     Table of Contents
Deferred Compensation Plan
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                               EL PASO CORPORATION
                           DEFERRED COMPENSATION PLAN
               AMENDED AND RESTATED EFFECTIVE AS OF JUNE 13, 2002

                                SECTION 1 PURPOSE

1.1      PURPOSE

         The purpose of the El Paso Corporation Deferred Compensation Plan (the
"Plan") is to permit the executives and certain key management employees of El
Paso Corporation (the "Company") and its subsidiaries to defer all or some part
of their Eligible Compensation (as defined below) in order for the Company to
attract and retain exceptional personnel.

                            SECTION 2 ADMINISTRATION

2.1      MANAGEMENT COMMITTEE

         The Plan shall be administered by a management committee (the
"Management Committee") consisting of the Chief Executive Officer and such other
senior officers as he or she shall designate. Subject to the Compensation
Committee (the "Compensation Committee") of the Company's Board of Directors
(the "Board"), the Management Committee shall interpret the Plan, prescribe,
amend and rescind rules relating to it, select eligible Participants, and take
all other actions necessary for its administration, which actions shall be final
and binding upon all Participants. No member of the Management Committee shall
vote on any matter that pertains solely to himself or herself.

                             SECTION 3 PARTICIPANTS

3.1      PARTICIPANTS

         The Management Committee shall determine and designate the executives
and key management employees of the Company and its subsidiaries who are
eligible to defer Eligible Compensation under the Plan (the "Participants").
Members of the Board who are full-time executives of the Company shall be
eligible to participate in the Plan.

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El Paso Corporation                                                       Page 1
Deferred Compensation Plan
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                               SECTION 4 DEFERRALS

4.1      ELIGIBLE COMPENSATION

         For purposes of this Plan the term "Eligible Compensation" means the
following:

         (a)      "Base Salary" is the Participant's base salary being paid for
                  the year or partial year, exclusive of bonuses or other forms
                  of cash incentive compensation for the year;

         (b)      "Cash Incentive Award" is an annual incentive award made under
                  the Company's Incentive Compensation Plan or an annual cash
                  incentive award under a similar annual incentive plan
                  maintained by the Company or a subsidiary of the Company, as
                  applicable;

         (c)      Payment for "Performance Units" which are granted pursuant to
                  the Company's Omnibus Compensation Plan or other similar
                  performance unit plan maintained by the Company or a
                  subsidiary of the Company, as applicable;

         (d)      "Equity Award" is a Participant's award of nonqualified stock
                  options, stock appreciation rights, restricted stock, or other
                  equity-based compensation granted pursuant to the terms and
                  conditions of the applicable Company plan from which such
                  awards were made; and

         (e)      Compensation otherwise payable pursuant to the terms of other
                  plans which the Company or its subsidiaries may from time to
                  time maintain, including but not limited to, the supplemental
                  RSP benefits under the Company's Supplemental Benefit Plan, as
                  may be amended from time to time.

4.2      DEFERRED PAYMENT OF BASE SALARY

         Prior to January 1 of any year (or, with respect to individuals who
first become Participants during a year, on or before the date on which they
become Participants) each Participant may elect to have the payment of all or a
portion of his or her Base Salary for the year beginning January 1 (or, if
later, so much of the year as commences on the day following the date on which
the individual becomes a Participant) deferred until his or her retirement,
death, Permanent Disability (as defined below), resignation, designated payment
date or termination of employment with the Company and its subsidiaries, or
until any other specified time that is determined by the Management Committee.
The minimum amount that may be so deferred is $1,000. The election shall be
irrevocable and shall be made on a form prescribed by the Management Committee.
The election shall apply only to that calendar year or partial year. If a
Participant has not made an election, the Base Salary paid to him or her for
that year shall be paid in accordance with the Company's normal payroll
practices.

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El Paso Corporation                                                       Page 2
Deferred Compensation Plan
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4.3      DEFERRED PAYMENT OF CASH INCENTIVE AWARDS

         Each Participant may, at such time as the Management Committee may
determine, in its sole discretion, elect to have the payment of all or a portion
of his or her Cash Incentive Award, if any, for the year deferred until the
Participant's retirement, death, Permanent Disability, resignation, designated
payment date or termination of employment with the Company and its subsidiaries,
or until any other specified time that is determined by the Management
Committee. The minimum amount that may be so deferred is $1,000. The election
shall be irrevocable and shall be made on a form prescribed by the Management
Committee. The election shall apply only to that year. If a Participant has not
made an election, any Cash Incentive Award granted to the Participant for that
year shall be paid pursuant to the terms of the applicable annual incentive
compensation plan under which the award was made.

4.4      DEFERRED PAYMENT FOR PERFORMANCE UNITS

         Each Participant may, prior to the vesting of Performance Units and in
a manner prescribed by the Management Committee, elect to have all or a portion
of the lump-sum cash payment payable pursuant to the terms of the applicable
omnibus compensation plan or other performance unit plan with respect to vested
Performance Units deferred until the Participant's retirement, death, Permanent
Disability, resignation, designated payment date or termination of employment
with the Company and its subsidiaries or until any other specified time that is
determined by the Management Committee. The minimum amount that may be so
deferred is $1,000. The election shall be irrevocable and shall be made on a
form prescribed by the Management Committee. The election shall apply only to
the Performance Units that may become vested with respect to that year. If a
Participant has not made an election, any cash payment for Performance Units
shall be paid pursuant to the applicable provisions of the plan under which the
Performance Units were granted.

4.5      DEFERRED PAYMENT FOR EQUITY AWARDS

         Each Participant may elect, at a time and in a manner determined by the
Management Committee and the plan administrator of the plan from which Equity
Awards are granted, to have the payment of all or a portion of such Equity Award
deferred until his or her retirement, death, Permanent Disability, resignation,
designated payment date or termination of employment with the Company and its
subsidiaries, or until any other specified time that is determined by the
Management Committee. The election shall be irrevocable and shall be made on a
form prescribed or accepted by the Management Committee. If a Participant has
not made an election, any Equity Award granted to the Participant shall be paid
pursuant to the terms of the applicable Company plan under which the award was
made. All Equity Awards deferred shall be credited to the Deferred Stock
Account, unless the Management Committee shall, in its sole discretion,
otherwise determine.

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El Paso Corporation                                                       Page 3
Deferred Compensation Plan
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4.6      DEFERRED PAYMENT FOR AMOUNTS AWARDED UNDER OTHER PLANS

         Participants may be allowed to irrevocably elect to defer, in the sole
discretion of the Management Committee, amounts that would otherwise be payable
under any other plan maintained or which may be maintained by the Company or its
subsidiaries. Any such deferrals must be permitted pursuant to the terms of such
other plans. If an election is made under another Company plan to have amounts
deferred pursuant to the terms of this Plan, the amount initially to be credited
as deferred under this Plan shall be determined as provided in the applicable
other plan of the Company. Except as otherwise specifically provided in any such
other plan, from the date specified in the applicable election (or if no such
date is specified then from the date such election is effective) until the date
any deferred amount is paid (or otherwise credited back to the applicable plan
as provided in applicable provisions of such plan which are acceptable to the
Management Committee), the provisions of this Plan shall govern (i) the
determination of the value of amounts deferred, including the calculation (and,
where applicable, the disposition), of income, expenses, gains and losses to be
credited to such deferrals, and (ii) the terms and conditions of the
distribution of such deferred amounts.

4.7      MEMORANDUM ACCOUNT AND SUBACCOUNTS

         The Company shall establish a ledger account (the "Memorandum Account")
for each Participant who has elected to defer the payment of any part of his or
her Eligible Compensation, for the purpose of reflecting the Company's
obligation to pay the deferred amount as provided in Section 4.9. Interest or
other income, expense, gain or loss, as applicable, shall accrue on the deferred
amount to the date of distribution, and shall be credited to the Memorandum
Account at the end of each calendar quarter or such other periods as may be
determined by the Management Committee. The Management Committee shall determine
the rate of interest or method for determining other income, expense, gain or
losses periodically and in so doing may take into account the earnings, losses,
appreciation or depreciation attributable to any discretionary investments made
pursuant to Section 5.2, including, but not limited to, any investment direction
from a Participant regarding amounts credited to his or her Memorandum Account.
A Memorandum Account can consist of the following types of subaccounts:

         (a)      "Interest Account" means a subaccount that is credited with
                  interest periodically at such times and rates as may be
                  determined by the Management Committee in its sole discretion;

         (b)      "Investment Account" means the subaccount that has
                  earnings/losses credited periodically based upon, at least in
                  part, the performance of certain investment funds (and can
                  include any other subaccount other than the Deferred Stock
                  Account) made available from time to time by the Management
                  Committee, in its sole discretion;

         (c)      "Deferred Stock Account" means the subaccount that is credited
                  with hypothetical shares of Company common stock, par value
                  three dollars ($3.00) per share ("Common Stock"), and has
                  earnings/losses credited periodically based upon the
                  performance of the Common Stock, including, but not limited
                  to, the reinvestment of dividends and distributions, if any,
                  made on the Common Stock; and

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El Paso Corporation                                                       Page 4
Deferred Compensation Plan
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         (d)      Such other subaccounts as the Management Committee, in its
                  sole discretion, shall determine to create.

4.8      PRIOR DEFERRALS

         Compensation which was deferred by a Participant under the Company's
Incentive Compensation Plan or Omnibus Compensation Plan or a similar plan
maintained by the Company's former parent company or a company acquired by the
Company shall be paid by the Company pursuant to the terms of this Plan.

4.9      PAYMENT OF DEFERRED ELIGIBLE COMPENSATION

         Upon the retirement, death, Permanent Disability, resignation,
designated payment date, termination of employment of a Participant who has
elected to defer any portion of his or her Eligible Compensation for any year,
or until any other specified time that is determined by the Management
Committee, the Company shall pay to such Participant (or his or her Beneficiary
in the case of his or her death) an amount equal to the balance of his or her
Memorandum Account, plus interest, income, expense, gain or loss, as applicable
(at a rate determined by the Management Committee pursuant to Section 4.7), on
the outstanding account balance to the date of distribution and subject to
approval of the Management Committee, as follows:

     (a) a lump-sum cash payment;

     (b) a lump-sum Common Stock distribution, to the extent the Participant has
         shares of Common Stock credited to his or her Deferred Stock Account
         (subject to applicable laws and regulations concerning the issuance of
         such shares of Common Stock);

     (c) a combination of (a) and (b) above; or

     (d) in periodic installments (consisting of cash and/or Common Stock (to
         the extent of the Participant's Deferred Stock Account)) over a period
         of years to be determined by the Participant at the time the deferral
         election is made, or as otherwise provided by the Management Committee
         in its sole discretion.

         Effective January 1, 2002, and subject to Sections 4.11 and 4.12,
payment of all deferred amounts shall commence or be made in the month following
(or as soon as administratively practical for terminations from January 1, 2002
through June 12, 2002) the Participant's retirement, death, Permanent
Disability, resignation or termination of employment, or as soon as practical
after the designated payment date as determined by the Plan Administrator.

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El Paso Corporation                                                       Page 5
Deferred Compensation Plan
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4.10     ACCELERATION OF PAYMENT OF DEFERRED ELIGIBLE COMPENSATION

         In case of an unforeseeable emergency, a Participant or Beneficiary may
request the Management Committee, on a form to be provided by the Management
Committee or its delegate, that payment be made earlier than the date to which
it was deferred or that there be a cessation of deferrals under the Plan.
Payment or cessation of deferrals under this Section 4.10 are permitted only to
the extent reasonably necessary to satisfy the emergency need.

         For purposes of this Section 4.10, an "unforeseeable emergency" shall
be limited to a severe financial hardship to the Participant resulting from a
sudden and unexpected illness or accident of the Participant or of a dependent
(as defined in Section 152(a) of the Internal Revenue Code (the "Code")) of the
Participant, loss of the Participant's property due to casualty, or other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant. The circumstances that will
constitute an unforeseeable emergency will depend upon the facts of each case,
but, in any case, payment may not be made and a cessation of deferral may not
occur to the extent that such hardship is or may be relieved: (i) through
reimbursement or compensation by available insurance or otherwise or (ii) by
liquidation of the Participant's assets, to the extent the liquidation of such
assets would not itself cause severe financial hardship. Moreover, payment of a
deferred amount may not be made ahead of the date to which the amount was
deferred to the extent that such hardship is or may be relieved by cessation of
deferrals under the Plan.

         The Management Committee shall consider any requests for payment under
this Section 4.10 on a uniform and nondiscriminatory basis and in accordance
with the standards of interpretation described in Section 457 of the Code and
the regulations thereunder. In the event there is a payment or a cessation of
deferrals under this Section 4.10, the participant shall be ineligible to make
further deferral elections for one year from the date of the Management
Committee action approving the payment or cessation of deferral.

         In the event of the death of a Participant, the Management Committee,
in its sole discretion, may pay the unpaid balance of a Participant's Memorandum
Account in lump-sum as soon as administratively practical. The Management
Committee in making its determination may consider such factors and require such
information as it deems appropriate.

4.11     PROVISIONS REGARDING FORMER SONAT EMPLOYEES

         (a) CREDIT TO MEMORANDUM ACCOUNT. Effective as of January 1, 2000, each
         person who had an Account in the Sonat Inc. Deferred Compensation Plan
         (the "Sonat Plan") on December 31, 1999, and who has not had a
         Termination of Employment before January 1, 2000 (a "Former Sonat
         Participant"), shall have credited to a Memorandum Account an amount
         equal to the sum of (a) the balance of his Account in the Sonat Plan on
         December 31, 1999 (determined as set forth in Section 3.3 of the Sonat
         Plan) plus (b) the amount of any credits made under Section 3.1 of the
         Sonat Plan in 2000 with respect to pay periods ending before January 1,
         2000. All Subaccounts under the Sonat Plan with respect to deferrals of
         base pay (valued as set forth above) shall be treated as

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El Paso Corporation                                                       Page 6
Deferred Compensation Plan
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         deferrals of Base Salary under Section 4.2 of this Plan. All
         Subaccounts under the Sonat Plan with respect to deferrals of bonus
         (valued as set forth above) shall be treated as deferrals of Cash
         Incentive Awards under Section 4.3 of this Plan. All amounts so
         credited shall initially be invested in an Interest Account.

         (b) PAYMENT OF MEMORANDUM ACCOUNT. Unless the Participant has otherwise
         elected pursuant to the special election period established by the
         Management Committee, the amount credited to a Former Sonat
         Participant's Memorandum Account as provided in Section 4.11(a), and
         the interest, income, expense, gain or loss with respect thereto, shall
         be paid as provided in this Section 4.11(b), taking into account all
         Deferral Elections (as defined in the Sonat Plan) with respect thereto
         made before January 1, 2000.

                  For purposes of this Section 4.11(b):

                  (1) if the "Payment Commencement Event" (as defined in the
                  Sonat Plan) with respect to a Deferral Election is termination
                  of employment, then (a) the amount payable with respect to
                  such Deferral Election shall be valued as of the last business
                  day of the calendar quarter in which the termination of
                  employment occurs, and (b) such amount shall be paid on the
                  15th day of the calendar quarter following the termination of
                  employment (or if such day is not a business day, the next
                  business day thereafter).

                  (2) if the Payment Commencement Event with respect to a
                  Deferral Election is a specified July 1, and the Subaccount
                  attributable to such Deferral Election is to be paid in a cash
                  lump sum, then (a) the amount payable with respect thereto
                  shall be valued as of the June 15 (or if such day is not a
                  business day, the next business day thereafter) before the
                  specified July 1, and (b) such amount shall be paid on the
                  specified July 1 (or if such day is not a business day, the
                  next business day thereafter).

                  (3) if the Payment Commencement Event with respect to a
                  Deferral Election is a specified July 1, and the Subaccount
                  attributable to such Deferral Election is to be paid in annual
                  installments, then (a) the amount payable with respect thereto
                  shall be valued as of each June 15 (or if that day is not a
                  business day, the next business day) before the applicable
                  July 1, and (b) the amount to be paid on each July 1 (or if
                  that day is not a business day, the next business day) shall
                  equal the value determined pursuant to clause (a) above
                  divided by the number of installments remaining to be paid
                  (including the installment about to be paid).

                  (4) notwithstanding any other election made by a Former Sonat
                  Participant under the Sonat Plan before January 1, 2000, upon
                  the Former Sonat Participant's death, the amount credited to
                  the Former Sonat Participant's Memorandum Account as provided
                  in Section 4.11(a), and the interest, income, expense, gain or
                  loss with respect thereto, shall be valued as of the last
                  business day of the calendar quarter in which the Former Sonat
                  Participant's death occurred, and such amount

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El Paso Corporation                                                       Page 7
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                  shall be paid to the deceased Former Sonat Participant's
                  designated beneficiary (or, if no beneficiary has been
                  designated, or if all designated beneficiaries have
                  predeceased the Former Sonat Participant, to the Former Sonat
                  Participant's estate) in a cash lump sum on the 15th day of
                  the calendar quarter following the Former Sonat Participant's
                  death (or if such day is not a business day, the next business
                  day thereafter).

4.12     PROVISIONS REGARDING FORMER COASTAL EMPLOYEES

         (a) CREDIT TO MEMORANDUM ACCOUNT. Effective as of April 1, 2001, each
         person who had an account in the Deferred Salary Plan of the American
         Natural Resources System (the "Deferred Salary Plan") or the ANR
         Pipeline Company Management Incentive Compensation Program (the
         "Incentive Compensation Program") (collectively the "Coastal Plans") on
         March 31, 2001, and whose employment has not been terminated before
         April 1, 2001 (a "Former Coastal Participant"), shall have credited to
         a Memorandum Account an amount equal to the sum of (a) the balance of
         his account in the Coastal Plans on March 31, 2001 (determined as set
         forth in Section V of the Deferred Salary Plan and Section VI of the
         Incentive Compensation Program) plus (b) the amount of any credits made
         under Section V of the Deferred Salary Plan and Section VI of the
         Incentive Compensation Program in 2001 with respect to pay periods
         ending before April 1, 2001. All accounts under the Deferred Salary
         Plan with respect to deferrals of base salary (valued as set forth
         above) shall be treated as deferrals of Base Salary under Section 4.2
         of this Plan. All accounts under the Incentive Compensation Program
         with respect to deferrals of Incentive Awards (valued as set forth
         above) shall be treated as deferrals of Cash Incentive Awards under
         Section 4.3 of this Plan. All amounts so credited shall initially be
         invested in an Interest Account.

         (b) PAYMENT OF MEMORANDUM ACCOUNT WITH RESPECT TO AMOUNTS DEFERRED
         UNDER THE DEFERRED SALARY PLAN. Unless the Participant has otherwise
         elected pursuant to the special election period established by the
         Management Committee, the amount credited to a Former Coastal
         Participant's Memorandum Account from the Deferred Salary Plan as
         provided in Section 4.12(a), and the Additional Amount (as defined in
         Section IV of the Deferred Salary Plan and Section II of the Deferred
         Salary Agreement) with respect thereto, shall be paid as provided in
         this Section 4.12(b), taking into account all deferral elections made
         in each Former Coastal Employee's Deferred Salary Agreement Payment
         Election Form with respect thereto made before April 1, 2001.

                  For purposes of this Section 4.12(b):

                  (1) In the event the Participant's employment is terminated
                  for any reason other than retirement or death, payment shall
                  be made as elected under this paragraph. The Participant shall
                  elect the number of year(s) over which payment(s) is/are to be
                  paid. Such election is irrevocable and shall be made at the
                  time the Participant makes the election to defer an amount of
                  his/her base salary. Payment shall begin on the 15th day of
                  the month following the month in which

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El Paso Corporation                                                       Page 8
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                  the Participant's employment is terminated for any reason
                  other than retirement or death. Payment(s) shall continue on
                  the same day for each subsequent year and shall continue until
                  all benefits under the Plan shall have been paid. The total
                  amount accrued to the benefit of the Participant (including
                  the Additional Amount credited to the end of the month
                  preceding the month in which the first payment is made) shall
                  be divided by the number of payments selected by the
                  Participant in order to determine the amount of the yearly
                  payment. The amount of the first annual installment shall be
                  the "basic installment" for future annual installments. For
                  any annual payment after the first payment, the Additional
                  Amount which has accrued since the time the basic installment
                  was computed and ending with the end of the month preceding
                  the month in which the particular annual payment is made,
                  shall be added to and paid with the basic installment. The
                  last annual payment shall include the entire balance accrued
                  to the Participant.

                  (2) In the event the Participant's employment is terminated
                  because of retirement (including early retirement), payment
                  shall be made as elected under this paragraph. The Participant
                  shall elect the month and year payments are to begin and the
                  number of year(s) over which payment(s) is/are to be paid.
                  Such election is irrevocable and shall be made at the time the
                  Participant makes the election to defer an amount of his/her
                  base salary. Payment shall begin on the 15th day of the month
                  selected by the Participant. Payment(s) shall continue on the
                  same day for each subsequent year and shall continue until all
                  the benefits under the plan have been paid. The total amount
                  accrued to the benefit of the Participant (including the
                  Additional Amount credited to the end of the month preceding
                  the month in which the first payment is made) shall be divided
                  by the number of payments selected by the Participant in order
                  to determine the amount of the yearly payment. The amount of
                  the first annual installment shall be the "basic installment"
                  for future annual installments. For any annual payment after
                  the first payment, the Additional Amount which has accrued
                  since the time the basic installment was computed and ending
                  with the end of the month preceding the month in which the
                  particular annual payment is made, shall be added to and paid
                  with the basic installment. The last annual payment shall
                  include the entire balance accrued to the Participant.

                  (3) In the event the Participant dies before the entire
                  balance accrued to the Participant has been paid, payment
                  shall be made as elected under this paragraph. The Participant
                  shall elect the option under which payment shall be made. The
                  options are as follows:

                           (a) Option A. Payment shall be in a lump sum on the
                           15th day of the month following the month in which
                           the Participant dies.

                           (b) Option B. If the Participant has received at
                           least one payment under either paragraph (1) or (2)
                           prior to his/her death, payment shall continue in the
                           same manner as if he/she had not died. If the
                           Participant

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El Paso Corporation                                                       Page 9
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                           has not received any payment under either paragraph
                           (1) or (2) prior to his/her death, payment(s) shall
                           begin on the 15th day of the month following the
                           month in which the Participant dies and shall be over
                           the number of years selected by the Participant.

                  The election under this paragraph is irrevocable and shall be
                  made at the time the Participant makes the election to defer
                  an amount of his/her base salary. If payments are made under
                  Option B and the Participant has not received a payment under
                  paragraph (1) or (2) prior to his/her death, payment(s) shall
                  begin on the 15th day of the month following the month in
                  which the Participant dies and shall continue on the same day
                  for each subsequent year until all benefits under the Plan
                  have been paid. In such an event, the total amount accrued to
                  the benefit of the Participant (including the Additional
                  Amount credited to the end of the month preceding the month in
                  which the first payment is made) shall be divided by the
                  number of payments selected by the Participant in order to
                  determine the amount of the yearly payment. The amount of the
                  first annual installment shall be the "basic installment" for
                  future annual installments. For any annual payment after the
                  first payment, the Additional Amount which has accrued since
                  the time the basic installment was computed and ending with
                  the end of the month preceding the month in which the
                  particular annual payment is made, shall be added to and paid
                  with the basic installment. The last annual payment shall
                  include the entire balance accrued to the Participant. The
                  Participant may designate a beneficiary(ies) to receive
                  amounts paid under this paragraph. Such beneficiary(ies) may
                  be changed at any time by the Participant. If no beneficiary
                  is designated, payment(s) shall be made to the estate of the
                  Participant.

         (c) PAYMENT OF MEMORANDUM ACCOUNT WITH RESPECT TO AMOUNTS DEFERRED
         UNDER THE INCENTIVE COMPENSATION PROGRAM. Unless the Participant has
         otherwise elected pursuant to the special election period established
         by the Management Committee, the amount credited to a Former Coastal
         Participant's Memorandum Account from the Incentive Compensation
         Program as provided in Section 4.12(a), and the interest, income,
         expense, gain or loss with respect thereto, shall be paid as provided
         in this Section 4.12(c), taking into account all deferral elections
         made in each Former Coastal Employee's Deferred Payment Request &
         Designation of Beneficiary form with respect thereto made before April
         1, 2001.

                  For purposes of this Section 4.12(c):

                  (1) Deferred awards will be paid out in not more than 20
                  annual installments beginning with the 15th day of the month
                  next following the month in which the Participant retires or
                  his/her employment is terminated.

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El Paso Corporation                                                      Page 10
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                          SECTION 5 GENERAL PROVISIONS

5.1      UNFUNDED OBLIGATION

         The deferred amounts to be paid to Participants pursuant to this Plan
are unfunded obligations of the Company. The Company is not required to
segregate any monies from its general funds, to create any trusts, or to make
any special deposits with respect to this obligation. Beneficial ownership of
any investments, including trust investments, which the Company may make to
fulfill this obligation shall at all times remain in the Company. Any
investments and the creation or maintenance of any trust or memorandum accounts
shall not create or constitute a trust or a fiduciary relationship between the
Management Committee or the Company and a Participant, or otherwise create any
vested or beneficial interest in any Participant or his or her Beneficiary or
his or her creditors in any assets of the Company whatsoever. The Participants
shall have no claim against the Company for any changes in the value of any
assets which may be invested or reinvested by the Company with respect to this
Plan.

5.2      DISCRETIONARY INVESTMENT BY COMPANY

         The Management Committee may direct that an amount equal to the
deferred amounts shall be invested by the Company as the Management Committee,
in its sole discretion, shall determine. The Management Committee may, in its
sole discretion, determine that all or some portion of an amount equal to the
deferred amounts shall be paid into one or more grantor trusts to be established
by the Company of which it shall be the beneficiary, and to the assets of which
it shall become entitled as and to the extent that Participants receive benefits
under this Plan. The Management Committee may designate an investment advisor(s)
to direct investments and reinvestments of funds, including investments of any
grantor trusts hereunder, and, subject to Section 4.5, may consider (but shall
not be bound by) investment direction from Participants regarding the amounts
credited to his or her Memorandum Account.

5.3      BENEFICIARY

         The term "Beneficiary" shall mean the person or persons to whom
payments are to be made pursuant to the terms of the Plan in the event of the
Participant's death. The designation shall be on a form provided by the
Management Committee, executed by the Participant, and delivered to the
Committee. A Participant may change his Beneficiary designation at any time. A
designation by a Participant under the Burlington Resources Inc. Deferred
Compensation Plan, the Sonat Plan or the Coastal Plans shall remain in effect
under this Plan unless it is revoked or changed under this Plan. If no
Beneficiary is designated, the designation is ineffective, or in the event the
Beneficiary dies before the balance of the Memorandum Account is paid, the
balance shall be paid to the Participant's spouse or lineal descendants, to the
Participant's estate (unless the Management Committee for a given year has
designated investment in an annuity, in which case the payment options selected
by the Participant with respect thereto shall govern).

--------------------------------------------------------------------------------
El Paso Corporation                                                      Page 11
Deferred Compensation Plan
<PAGE>

5.4      PERMANENT DISABILITY

         A Participant shall be deemed to have become disabled for purposes of
this Plan if the Management Committee finds, upon the basis of medical evidence
satisfactory to it, that the Participant is totally disabled, whether due to
physical or mental condition, so as to be prevented from engaging in further
employment by the Company or any of its subsidiaries and that such disability
will be permanent and continuous during the remainder of his or her life.

5.5      INCAPACITY OF PARTICIPANT OR BENEFICIARY

         If the Management Committee finds that any Participant or Beneficiary
to whom a payment is payable under the Plan is unable to care for his or her
affairs because of illness or accident or is under a legal disability, any
payment due (unless a prior claim therefore shall have been made by a duly
appointed legal representative) at the discretion of the Committee, may be paid
to the spouse, child, parent or brother or sister of such Participant or
Beneficiary or to any person whom the Committee has determined has incurred
expense for such Participant or Beneficiary. Any such payment shall be a
complete discharge of the obligations of the Company under the provisions of the
Plan.

5.6      NONASSIGNMENT

          The right of a Participant or Beneficiary to the payment of any
amounts under the Plan may not be assigned, transferred, pledged or encumbered
nor shall such right or other interest be subject to attachment, garnishment,
execution or other legal process, except that any right of a Participant or
Beneficiary to the payment of any amounts under the Plan may be waived, released
or otherwise relinquished by a Participant to enable such Participant to receive
similar benefits under another plan or program maintained by the Company.

5.7      NO RIGHT TO CONTINUED EMPLOYMENT

         Nothing in the Plan shall be construed to confer upon any Participant
any right to continued employment with the Company or a subsidiary, nor
interfere in any way with the right of the Company or a subsidiary to terminate
the employment of such Participant at any time without assigning any reason
therefor.

5.8      WITHHOLDING TAXES

         Provision shall be made for the withholding of taxes under the Federal
Insurance Contributions Act at the time of vesting of benefits under the Plan
and appropriate income taxes shall be withheld from payments made to
Participants pursuant to this Plan, including if so determined by the Management
Committee, with respect to any payment otherwise to be made in the form of
Company Common Stock, but not limited to, withholding a sufficient number of
shares of Company Common Stock to satisfy the minimum required federal, state
and local income and employment tax withholding obligations associated with such
distribution; with the value of such shares withheld to be determined by using
the fair market value (average of high

--------------------------------------------------------------------------------
El Paso Corporation                                                      Page 12
Deferred Compensation Plan
<PAGE>

and low selling prices of the Company Common Stock, as reported in the
NYSE-Composite Transactions by The Wall Street Journal or any other comparable
service the Plan Administrator may determine is reliable) on the day prior to
day the distribution is made, or if the New York Stock Exchange is closed on
said day, the next succeeding business day.

5.9      TERMINATION AND AMENDMENT

         The Board or the Compensation Committee may from time to time amend,
suspend or terminate the Plan, in whole or in part, and if the Plan is suspended
or terminated, the Board or the Compensation Committee may reinstate any or all
of its provisions. The Management Committee may amend the Plan provided that it
may not suspend or terminate the Plan, substantially increase the administrative
cost of the Plan or the obligations of the Company, or expand the classification
of employees who are eligible to participate in the Plan. No amendment,
suspension or termination may impair the right of a Participant or his
designated beneficiary to receive the deferred compensation benefit accrued
prior to the effective date of such amendment, suspension or termination. The
Board amended and restated the Plan effective as of June 13, 2002. The Board had
previously amended and restated the Plan effective as of December 7, 2001 and
August 1, 1998, in connection with the reorganization of the Company into a
holding company structure whereby the Company became the publicly held company
and El Paso Natural Gas Company became a wholly owned subsidiary. This Plan was
assumed by the Company pursuant to an Assignment and Assumption Agreement
effective as of August 1, 1998, by and between the Company and El Paso Natural
Gas Company.

5.10     APPLICABLE LAW

         The Plan shall be construed and governed in accordance with the laws of
the State of Texas, except to the extent preempted by applicable federal law.

5.11     COMPLIANCE WITH SECURITIES LAWS

         The Company's intention is that, so long as any of the Company's equity
securities are registered pursuant to Section 12(b) or 12(g) of the Securities
Exchange Act of 1934, as amended, this Plan shall be operated in compliance with
Section 16(b) thereof, and the rules and regulations promulgated thereunder;
and, if any Plan provision or transaction is found not to comply with Section
16(b), that provision or transaction, as the case may be, shall be deemed null
and void. Notwithstanding anything in the Plan to the contrary, the Management
Committee, in its absolute discretion, may bifurcate the Plan so as to restrict,
limit or condition the use of any provision of the Plan to Participants who are
subject to Section 16(b) without so restricting, limiting or conditioning the
Plan with respect to other Participants.

5.12     SOURCE OF COMMON STOCK AND ADJUSTMENTS

         Any shares of Common Stock delivered pursuant to this Plan shall
consist of Common Stock held in the Company's treasury or out of authorized but
unissued shares of the Company, or partly out of each, as shall be determined by
the Management Committee or the Company, as

--------------------------------------------------------------------------------
El Paso Corporation                                                      Page 13
Deferred Compensation Plan
<PAGE>

appropriate; provided such shares are available pursuant to the original plan
from which they were deferred. Shares of Common Stock deferred under this Plan
as a result of an Equity Award are subject to the terms and conditions of the
plan from which the Equity Award was originally granted.

         In the event of a recapitalization, stock split, stock dividend,
exchange of shares, merger, reorganization, change in corporate structure or
shares of the Company or similar event, the Board, upon the recommendation of
the Management Committee, may make appropriate adjustments in the number of
shares credited to each Participant's Deferred Stock Account.

5.13     REGULATORY APPROVALS AND LISTING

         The Company shall not be required to issue any certificate for shares
of Common Stock upon the distribution of Common Stock under the Plan prior to:
(a) obtaining any approval or ruling from the Securities and Exchange
Commission, the Internal Revenue Service or any other governmental agency which
the Company, in its sole discretion, shall determine to be necessary or
advisable; (b) listing of such shares on any stock exchange on which the Common
Stock may then be listed; or (c) completing any registration or other
qualification of such shares under any federal or state laws, rulings or
regulations of any governmental body which the Company, in its sole discretion,
shall determine to be necessary or advisable.

         All certificates for shares of Common Stock delivered under the Plan
shall also be subject to such stop-transfer orders and other restrictions as the
Management Committee may deem advisable under the rules, regulations and other
requirements of the Securities and Exchange Commission, any stock exchange upon
which Common Stock is then listed and any applicable federal or State securities
laws, and the Management Committee may cause a legend or legends to be placed on
any such certificates to make appropriate reference to such restrictions. The
foregoing provisions of this paragraph shall not be effective if and to the
extent that the shares of Common Stock delivered under the Plan are covered by
an effective and current registration statement under the Securities Act of
1933, as amended, or if and so long as the Management Committee determines that
application of such provisions are no longer required or desirable. In making
such determination, the Management Committee may rely upon an opinion of counsel
for the Company.

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El Paso Corporation                                                      Page 14
Deferred Compensation Plan
<PAGE>

         IN WITNESS WHEREOF, the Company has caused the Plan to be amended and
restated effective as of June 13, 2002.

                                       EL PASO CORPORATION

                                       By /s/ Joel Richards III
                                         ---------------------------------------
                                         Executive Vice President
                                         Human Resources and Administration

ATTEST:

By /s/ David L. Siddall
  --------------------------------
Title: Corporate Secretary

--------------------------------------------------------------------------------
El Paso Corporation                                                      Page 15
Deferred Compensation Plan<PAGE>
                                                                    EXHIBIT 10.1

                               APACHE CORPORATION
                             DEFERRED DELIVERY PLAN

                      As Amended and Restated July 17, 2002

<PAGE>

                                TABLE OF CONTENTS

<Table>
<S>                                                                                                              <C>

ARTICLE I - Definitions...........................................................................................1

         1.01     Definitions.....................................................................................1
         1.02     Headings; Gender and Number.....................................................................3

ARTICLE II - Eligibility and Participation........................................................................3

         2.01     Eligibility and Participation...................................................................3
         2.02     Election........................................................................................4
         2.03     Failure of Eligibility..........................................................................4

ARTICLE III - Contribution Deferrals..............................................................................4

         3.01     Participant Deferrals...........................................................................4
         3.02     Company Match...................................................................................6
         3.03     Deferral of Deferred Restricted Units...........................................................6

ARTICLE IV - Investment of Deferrals and Accounting; Voting.......................................................6

         4.01     Investments.....................................................................................6
         4.02     Voting..........................................................................................7

ARTICLE V - Distributions.........................................................................................7

         5.01     Vesting.........................................................................................7
         5.02     Distribution During Employment..................................................................8
         5.03     Distribution After Employment...................................................................9
         5.04     Distribution After Participant's Death.........................................................10
         5.05     Withholding....................................................................................10

ARTICLE VI - Administration......................................................................................11

         6.01     Committee to Administer and Interpret Plan.....................................................11
         6.02     Organization of Committee......................................................................11
         6.03     Agent for Process..............................................................................11
         6.04     Determination of Committee Final...............................................................11

ARTICLE VII - Trust..............................................................................................11

         7.01     Trust Agreement................................................................................11
         7.02     Expenses of Trust..............................................................................12
</Table>

                                        i

<PAGE>

<Table>
<S>                                                                                                             <C>
ARTICLE VIII - Amendment and Termination.........................................................................12

         8.01     Amendment......................................................................................12
         8.02     Successors and Assigns; Termination of Plan.....................................................12

ARTICLE IX - Stock Subject to the Plan...........................................................................13

         9.01     Number of Shares...............................................................................13
         9.02     Other Shares of Stock..........................................................................13
         9.03     Adjustments for Stock Split, Stock Dividend, Etc...............................................13
         9.04     Dividend Payable in Stock of Another Corporation, Etc..........................................14
         9.05     Other Changes in Stock.........................................................................14
         9.06     Rights to Subscribe............................................................................14
         9.07     Change of Control..............................................................................15
         9.08     General Adjustment Rules.......................................................................15
         9.09     Determination by the Committee, Etc............................................................15

ARTICLE X - Reorganization and Liquidation.......................................................................15

ARTICLE XI - Miscellaneous.......................................................................................16

         11.01     Funding of Benefits - No Fiduciary Relationship...............................................16
         11.02     Right to Terminate Employment.................................................................16
         11.03     Inalienability of Benefits....................................................................16
         11.04     Claims Procedure..............................................................................17
         11.05     Disposition of Unclaimed Distributions........................................................17
         11.06     Distributions Due Infants or Incompetents.....................................................18
         11.07     Governing Law.................................................................................18

Annex A - Stock Bonus Award Provisions..........................................................................A-1
</Table>

                                       ii

<PAGE>

                               APACHE CORPORATION
                             DEFERRED DELIVERY PLAN
                      AS AMENDED AND RESTATED JULY 17, 2002

         Apache Corporation ("Apache"), a Delaware corporation (hereinafter
referred to, together with its Affiliated Entities (as defined below), as the
"Company" except where the context otherwise requires), established the Apache
Corporation Deferred Delivery Plan, effective as of February 10, 2000. The Plan
(as defined below) provides Participants (as defined below) with an opportunity
to defer income and permits the grant of Stock Bonus Awards (as defined below)
to Participants selected by the Committee (as defined below), in consideration
of the valuable past services provided by Participants to the Company.

         The Plan is intended to provide Participants with added incentives and
to induce them to remain in the employ of the Company. The Company intends that
the Plan shall not be treated as a "funded" plan for purposes of either the Code
or the Employee Retirement Income Security Act of 1974, as amended ("ERISA").

                                    ARTICLE I
                                   DEFINITIONS

1.01  Definitions

         Defined terms used in this Plan shall have the meanings set forth
below:

         (a)      "Account" means the memorandum account maintained for each
                  Participant to which shall be credited all Deferred Amounts
                  (including any Stock Bonus Award), all Company Match made on
                  behalf of a Participant, all Deferred Restricted Units, and
                  all adjustments thereto.

         (b)      "Affiliated Entity" means any corporation or other legal
                  entity (including but not limited to a partnership) which is
                  affiliated with Apache through stock ownership or otherwise
                  and is treated as a common employer under the provisions of
                  Sections 414(b) and (c) or any successor sections of the Code.

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

         (d)      "Committee" means the Stock Option Plan Committee of Apache's
                  Board of Directors. The Committee shall be constituted at all
                  times so as to permit the plan to be administered by
                  "non-employee directors" (as

                                       1

<PAGE>

                  defined in Rule 16b-3 of the Securities Exchange Act of 1934,
                  as amended).

         (e)      "Company Match" means the allocations to a Participant's
                  Account made pursuant to Section 3.02.

         (f)      "Compensation" shall mean the one-time 1999 discretionary
                  award and/or income from (a) any Stock Bonus Award, (b)
                  exercises of non-qualified employee stock options granted to
                  the Participants pursuant to Apache's 1990 Stock Incentive
                  Plan, 1995 Stock Option Plan, 1998 Stock Option Plan, 2000
                  Stock Option Plan or any future plan under which employee
                  stock options may be granted, and/or (c) any Other Approved
                  Plan. The Committee and/or the Board of Directors may from
                  time to time designate other forms of remuneration that are
                  available for deferral into the Plan.

         (g)      "Deferred Amounts" means the amounts of a Participant's
                  Compensation, which are deferred and credited to the
                  Participant's Account pursuant to Section 3.01.

         (h)      "Deferred Restricted Units" means those units deferred into
                  the Plan from the Restricted Stock Plan and any related units
                  from dividend amounts. Each Deferred Restricted Stock Unit is
                  deemed to be equivalent to one share of Stock.

         (i)      "Election Agreement" means an application for participation in
                  the Plan, execution of which by an eligible employee is
                  required under Article II for the Participant to elect or
                  acknowledge Deferred Amounts.

         (j)      "Fair Market Value" means the per share closing price of the
                  Stock as reported on The New York Stock Exchange, Inc.
                  Composite Transactions Reporting System for a particular date.
                  If there are no Stock transactions on such date, the Fair
                  Market Value shall be determined as of the immediately
                  preceding date on which there were Stock transactions.

         (k)      "Other Approved Plan" means the 2000 Share Appreciation Plan
                  and any other compensation or benefit plan which may from time
                  to time be designated by the Committee and/or the Board of
                  Directors.

         (l)      "Participant" means any eligible employee selected to
                  participate in the Plan pursuant to Section 2.01.

         (m)      "Plan" means the Apache Corporation Deferred Delivery Plan
                  (including Annex A), as it has been amended from time to time,
                  or any successor plan.

                                       2

<PAGE>

         (n)      "Plan Year" means the period during which the Plan records are
                  kept. The Plan Year shall be the calendar year.

         (o)      "Restricted Stock Plan" means the Apache Corporation Pilot
                  Executive Restricted Stock Plan as it may be amended from time
                  to time, or any successor plan.

         (p)      "Stock" means the $1.25 par value common stock of Apache.

         (q)      "Stock Bonus Award" means any grant of Stock Units made
                  pursuant to Annex A.

         (r)      "Stock Units" means investment units and any related units
                  from dividend amounts. Each Stock Unit is deemed to be
                  equivalent to one share of Stock.

         (s)      "Trust" means the trust or trusts, if any, created by the
                  Company to provide funding for the distribution of benefits in
                  accordance with the provisions of the Plan. The assets of any
                  such Trust shall remain subject to the claims of the Company's
                  general creditors in the event of the Company's insolvency.

         (t)      "Trust Agreement" means the written instrument pursuant to
                  which each separate Trust is created.

         (u)      "Trustee" means one or more banks, trust companies or
                  insurance companies designated by the Company to hold the
                  Trust fund and to pay benefits and expenses as authorized by
                  the Committee in accordance with the terms and provisions of
                  the Trust Agreement.

1.02     Headings; Gender and Number

         The headings contained in the Plan are for reference purposes only and
         shall not affect in any way the meaning or interpretation of the Plan.
         Except when otherwise indicated by the context, the masculine gender
         shall also include the feminine gender, and the definition of any term
         herein in the singular shall also include the plural.

                                   ARTICLE II
                          ELIGIBILITY AND PARTICIPATION

2.01     Eligibility and Participation

         The Committee shall from time to time in its sole discretion select
         those employees of the Company who are eligible to participate in the
         Plan from

                                       3

<PAGE>

         among a select group of key employees; however, any Participant in the
         Restricted Stock Plan shall be a Participant in the Plan without
         further action by the Committee.

2.02     Election

         Participants shall complete the election procedure specified by the
         Committee. The election procedure may include form(s) for the
         Participant to (a) designate a beneficiary (pursuant to Article V), (b)
         elect or acknowledge Deferred Amounts by entering into an Election
         Agreement with the Company (pursuant to Section 3.01), (c) select a
         payment option for the eventual distribution of his Account (pursuant
         to Article V), and (d) provide such other information as the Committee
         may reasonably require.

2.03     Failure of Eligibility

         The Committee shall have the authority to determine that a Participant
         is no longer eligible to participate in the Plan. No Company Match or
         Stock Bonus Award shall be made, no Deferred Amounts withheld from a
         Participant's Compensation, no Deferred Restricted Units deferred into
         the Plan from the Restricted Stock Plan, and no dividend amounts
         credited to a Participant's Account after he ceases to be eligible to
         participate in the Plan. The determination of the Committee with
         respect to the termination of participation in the Plan shall be final
         and binding on all parties affected thereby. Except as provided in
         Section 5.01, any benefits vested hereunder, at the time the
         Participant becomes ineligible to continue participation, shall be
         distributable in accordance with the provisions of the Plan.

                                   ARTICLE III
                             CONTRIBUTION DEFERRALS

3.01     Participant Deferrals

         (a)      General. A Participant may elect to defer a portion of his
                  Compensation and/or acknowledge the deferral of income from
                  the grant of a Stock Bonus Award by filing the appropriate
                  Election Agreement with the Committee's designee. Deferred
                  Amounts related to the one-time 1999 discretionary award, and
                  to such other remuneration as may be designated from time to
                  time, shall be deducted through payroll withholding from the
                  Participant's cash Compensation payable by the Company, and
                  shall be credited to the Participant's Account on or about the
                  date the amounts are deducted. Deferred Amounts from the
                  deferral of income from the exercise of non-qualified stock
                  option grants, from the grant of a Stock Bonus Award or from
                  any Other Approved Plan shall be credited to the Participant's
                  Account on or about the date of the stock

                                       4

<PAGE>

                  option exercise, the grant date of the Stock Bonus Award or
                  the date the income would have been otherwise paid or
                  distributed from such Other Approved Plan, respectively.

         (b)      Initial Enrollment. When an employee first is selected to
                  participate in the Plan, pursuant to Section 2.01, the
                  Committee's designee shall provide him with an election form,
                  which, when properly completed and timely returned to the
                  Committee's designee shall constitute an Election Agreement.
                  To be effective, the Election Agreement must be completed and
                  returned to the Committee's designee by the deadline
                  established by the Committee. The employee may elect to defer
                  (i) up to 100 percent of the one-time 1999 discretionary
                  award, and (ii) such percentage up to 100 percent of income
                  from stock options exercised in the Plan Year indicated or
                  from any Other Approved Plan, divisible into such increments
                  as may be designated by the Committee; however, 100 percent of
                  income from the grant of any Stock Bonus Award shall be
                  deferred. The Election Agreement shall be effective
                  immediately upon receipt by the Committee's designee; however,
                  (i) Election Agreements related to the deferral of income from
                  stock option exercises must be completed and returned not less
                  than six months in advance of the Participant's intended
                  exercise date on which income is to be deferred, and (ii)
                  Election Agreements related to the deferral of income from any
                  Other Approved Plan must be completed and returned pursuant to
                  the provisions of such Other Approved Plan. Each Election
                  Agreement shall be irrevocable for the deferral of the
                  one-time 1999 discretionary award, or the deferral of income
                  (i) from stock options exercised in the Plan Year indicated,
                  (ii) from the grant of any Stock Bonus Award, or (iii) from
                  any Other Approved Plan.

         (c)      Continuing Election. A Participant shall enter into a separate
                  Election Agreement for (i) the deferral of income from stock
                  options exercises in the Plan Year indicated, (ii) the
                  deferral of income from the grant of any Stock Bonus Award
                  (iii) the deferral of income from any Other Approved Plan, or
                  (iv) any other deferral opportunity offered by the Committee.
                  To be effective, the Election Agreement must be completed and
                  returned to the Committee's designee by the deadline
                  established by the Committee; however, (i) Election Agreements
                  related to the deferral of income from stock option exercises
                  must be completed and returned not less than six months in
                  advance of the Participant's intended exercise date on which
                  income is to be deferred, and (ii) Election Agreements related
                  to the deferral of income from any Other Approved Plan must be
                  completed and returned pursuant to the provisions of such
                  Other Approved Plan. Each Election Agreement shall be
                  irrevocable.

                                       5

<PAGE>

         (d)      Participant Becomes Ineligible. A Participant's Election
                  Agreement(s) shall be canceled immediately if and when the
                  Participant becomes ineligible to participate in the Plan.

3.02     Company Match

         The Company shall credit to a Participant's Account matching
         contributions equal to the Participant's Deferred Amount related to the
         1999 one-time discretionary award. The Committee may from time to time
         in its sole discretion designate such other forms of remuneration that
         are available for deferral into the Plan, as well as such other
         matching contributions as the Committee deems appropriate. The Company
         Match shall be invested as specified in Article IV.

3.03     Deferral of Deferred Restricted Units

         Pursuant to the terms of the Restricted Stock Plan, Deferred Restricted
         Units (a) are deferred into the Plan for an initial deferral period of
         five years and (b) shall be credited to the Participants' Accounts as
         set forth in Subsection 4.01(b) hereof. Participants may elect an
         additional deferral period with respect to Deferred Restricted Units as
         set forth in Subsection 5.02(d) hereof.

                                   ARTICLE IV
                 INVESTMENT OF DEFERRALS AND ACCOUNTING; VOTING

4.01     Investments

         (a)      Except as provided in Subsection 4.01(b), all amounts credited
                  to a Participant's Account shall be invested in Stock Units,
                  with the number of Stock Units determined using the Fair
                  Market Value of the Stock for the date on which the amount is
                  credited to the Participant's Account. Amounts equal to any
                  cash dividends declared on the Stock shall be credited to the
                  Participant's Account as of the payment date for such dividend
                  in proportion to the number of Stock Units in the
                  Participant's Account as of the record date for such dividend.
                  Such dividend amounts shall be invested in Stock Units, with
                  the number of Stock Units determined using the Fair Market
                  Value of the Stock on the dividend payment date, and such
                  Stock Units shall vest pursuant to Section 5.01.

         (b)      All Deferred Restricted Units deferred into the Plan shall be
                  credited to the Participant's Account as of the date of
                  vesting under the Restricted Stock Plan. Amounts equal to any
                  cash dividends declared on the Stock shall be credited to the
                  Participant's Account for such dividend in proportion to the
                  number of Deferred Restricted Units in the Participant's
                  Account as of the record date for such dividend. Such dividend
                  amounts shall be invested in Deferred Restricted Units with
                  the number of Deferred

                                       6

<PAGE>

                  Restricted Units determined using the Fair Market Value of the
                  Stock on the dividend payment date, and such Deferred
                  Restricted Units shall be fully vested.

         (c)      Nothing contained in this Section shall be construed to give
                  any Participant any power or control to make investment
                  decisions or otherwise influence in any manner the investment
                  and reinvestment of assets contained within any investment
                  alternative, such control being at all times retained in the
                  full discretion of the Committee. Nothing contained in this
                  Section shall be construed to require the Company or the
                  Committee to fund any Participant's Account.

4.02     Voting

         Participants shall have no right to vote any Stock Units or Deferred
         Restricted Units prior to the date on which such Stock Units or
         Deferred Restricted Units are subject to distribution and shares of
         Stock are issued therefor.

                                    ARTICLE V
                                  DISTRIBUTIONS

5.01     Vesting

         (a)      The portion of a Participant's Account attributable to
                  Deferred Amounts from the one-time 1999 discretionary award,
                  related to the deferral of income from stock option exercises
                  and/or related to Deferred Restricted Units shall be fully
                  vested; however, the portion of a Participant's Account (i)
                  attributable to Deferred Amounts related to the grant of any
                  Stock Bonus Award or to such other remuneration as may be
                  designated from time to time and/or (ii) related to the
                  deferral of income from any Other Approved Plan, shall vest on
                  such terms as may be determined by the Committee.

         (b)      A Participant shall vest in the portion of his Account that is
                  attributable to the Company Match for the 1999 one-time
                  discretionary award as follows: 50 percent on the date six
                  months following the date of deferral and the remaining 50
                  percent on the date twelve months following the date of
                  deferral.

         (c)      If a Participant retires or becomes disabled (as defined by
                  the Company's Long Term Disability Plan) while still employed
                  by the Company, no further vesting shall occur subsequent to
                  the date of retirement or disability and all unvested portions
                  of the Participant's Account shall be forfeited immediately.

                                       7

<PAGE>

         (d)      If a Participant dies while still employed by the Company, any
                  unvested portion of the Participant's Account shall be
                  immediately vested.

         (e)      If a Participant's employment is terminated other than for
                  cause (as defined below), no further vesting of unvested
                  portions of the Participant's Account shall occur and all
                  unvested portions thereof shall be forfeited immediately.

         (f)      If the employment of the Participant is terminated for cause
                  as determined by the Company, the Participant's entire Account
                  balance (including any Deferred Amounts and/or Deferred
                  Restricted Units) shall be forfeited immediately. As used in
                  this subsection, "cause" shall mean a gross violation, as
                  determined by the Company, of the Company's established
                  policies and procedures. The effect of this subsection shall
                  be limited to determining the consequences of a termination
                  and nothing in this subsection shall restrict or otherwise
                  interfere with Company's discretion with respect to
                  termination of any employee.

         (g)      Stock Units attributable to dividend amounts credited to a
                  Participant's Account pursuant to Section 4.01 shall vest as
                  the corresponding Stock Units vest. As used in this
                  subsection, "corresponding Stock Units" shall mean those Stock
                  Units on which the dividend amounts are calculated.

5.02     Distribution During Employment

         (a)      While a Participant is employed by the Company, the only
                  available distribution is pursuant to the terms of an
                  applicable Election Agreement electing a deferral (i) for a
                  five-year period or (ii) until termination of employment with
                  the Company. Any distribution shall be paid in whole shares of
                  Stock, delivered in the number of installments designated by
                  the Participant in the applicable Election Agreement and,
                  coincident with delivery of the last such installment, any
                  fractional shares shall be paid in cash.

         (b)      If a Participant has elected to take his distribution in
                  installments, the first installment shall be delivered within
                  90 days after the termination date of the applicable deferral
                  period, and each subsequent installment shall be delivered
                  within 90 days after the first business day of the following
                  calendar year.

         (c)      If a Participant remains employed by the Company, a
                  Participant may elect to further defer distribution of his or
                  her Stock Units (i) for one additional five-year period or
                  (ii) until termination of employment with the Company by
                  executing a new Election Agreement at least one year prior to
                  the first installment due pursuant to the Participant's
                  previous election.

                                       8

<PAGE>

         (d)      With regard to any Deferred Restricted Units, a Participant
                  may elect to further defer such Deferred Restricted Units
                  beyond the initial deferral period (i) for one additional
                  five-year period or (ii) until termination of employment with
                  the Company, provided that such election is made at least one
                  year prior to the end of the initial deferral period.

         (e)      All distributions made pursuant to this Section 5.02 shall be
                  subject to Subsection 5.03 (a) hereof.

5.03     Distributions After Employment

         Distributions after the Participant's death shall be made pursuant to
         Section 5.04 hereof. All other distributions after employment shall be
         made as set forth below:

         (a)      All deferral periods shall terminate automatically effective
                  as of the date the Participant terminates employment with the
                  Company, regardless of the length of time remaining in any
                  such deferral period.

         (b)      Timing. The Participant's vested Account shall be distributed
                  after the Participant terminates employment with the Company
                  and the distribution shall be made in the number of
                  installments designated in the Participant's Election
                  Agreement(s). If the Participant has not made any such
                  distribution election, the Participant's vested Account
                  balance shall be distributed in one lump sum and such
                  distribution shall be made within 90 days of the Participant's
                  termination date. If a Participant has elected to take his
                  distribution in installments, the first installment shall be
                  delivered within 90 days after the Participant's termination
                  date and each subsequent installment shall be delivered within
                  90 days after the first business day of the following calendar
                  year.

         (c)      Form of Distribution. The Participant's entire vested Account
                  shall be paid in whole shares of Stock, delivered in the
                  number of installments designated pursuant to the Election
                  Agreement(s) executed by the Participant and, coincident with
                  delivery of the last such installment, any fractional shares
                  shall be paid in cash.

         (d)      Minimum Distribution. If, as of the Participant's termination
                  date, the value of his entire vested Account is $50,000 or
                  less, the Participant's vested Account balance shall be
                  distributed in one lump sum, regardless of any distribution
                  election made by the Participant, and such distribution shall
                  be made within 90 days of the Participant's termination date.

         (e)      Reemployment. If a Participant is reemployed by the Company
                  before his entire vested Account balance is paid, installments
                  from the Plan shall be suspended. Installments will resume
                  after the Participant again terminates

                                       9

<PAGE>

                  employment. The number of remaining installments shall be the
                  number of annual installments originally designated pursuant
                  to the Election Agreement(s) executed by the Participant, less
                  the number of installments received before the Participant was
                  re-employed. If the Participant dies before receiving all
                  installments, Section 5.04 shall apply.

5.04     Distributions After Participant's Death

         (a)      Each Participant shall designate one or more persons, trusts
                  or other entities as his beneficiary (the "Beneficiary") to
                  receive any amounts distributable hereunder at the time of the
                  Participant's death. A Beneficiary designation made under the
                  terms of the Plan shall be filed with the Committee's designee
                  and shall remain in effect unless and until changed pursuant
                  to Subsection 5.04(b) hereof. In the absence of an effective
                  Beneficiary designation as to part or all of a Participant's
                  interest in the Plan, such amount shall be distributed to the
                  Participant's surviving spouse, if any, otherwise to the
                  personal representative of the Participant's estate.

         (b)      A Beneficiary designation may be changed by the Participant at
                  any time and without the consent of any previously designated
                  Beneficiary. However, if the Participant is married, his
                  spouse shall be his Beneficiary unless such spouse has
                  consented to the designation of a different Beneficiary. To be
                  effective, the spouse's consent must be in writing, witnessed
                  by a notary public, and filed with the Committee's designee.
                  If a Participant has designated his spouse as a Beneficiary or
                  as a contingent Beneficiary, and the Participant and that
                  spouse subsequently divorce, then such Beneficiary designation
                  shall be void and of no effect with respect to such spouse on
                  and after the day such divorce is final.

         (c)      When a Participant dies, his remaining vested Account balance
                  shall be distributed to his Beneficiary in one lump sum as
                  soon as administratively possible after his death, regardless
                  of any distribution election made by the Participant, and
                  regardless of whether installment payments had begun. Such
                  distribution shall be paid in whole shares of Stock, with any
                  fractional shares paid in cash.

5.05     Withholding

         At the time of vesting and distribution, as applicable, the Plan shall
         withhold from such distribution any taxes or other amounts that are
         required to be withheld pursuant to any applicable law or such greater
         amount as requested by the Participant. The Committee may direct the
         Company to withhold additional amounts from any payment to repay the
         Participant's debt or obligation to the Company or at the request of
         the Participant.

                                       10

<PAGE>

                                   ARTICLE VI
                                 ADMINISTRATION

6.01     Committee to Administer and Interpret Plan

         The Plan shall be administered by the Committee. The Committee shall
         have all discretion and powers necessary for administering the Plan,
         including, but not by way of limitation, full discretion and power to
         interpret the Plan, to determine the eligibility, status and rights of
         all persons under the Plan and, in general, to decide any dispute. The
         Committee shall direct the Company, the Trustee, or both, as the case
         may be, concerning distributions in accordance with the provisions of
         the Plan. The Committee's designee shall maintain all Plan records
         except records of any Trust.

6.02     Organization of Committee

         The Committee shall adopt such rules as it deems desirable for the
         conduct of its affairs and for the administration of the Plan. The
         Committee may appoint a designee and/or agent (who need not be a member
         of the Committee or an employee of the Company) to assist the Committee
         in administration of the Plan and to whom it may delegate such powers
         as the Committee deems appropriate, except that the Committee shall
         determine any dispute. The Committee may make its determinations with
         or without meetings. The Committee may authorize one or more of its
         members, designees or agents to sign instructions, notices and
         determinations on its behalf. The action of a majority of the
         Committee's members shall constitute the action of the Committee.

6.03     Agent for Process

         Apache's General Counsel and Apache's Corporate Secretary shall each be
         an agent of the Plan for service of all process.

6.04     Determination of Committee Final

         The decisions made by the Committee shall be final and conclusive on
         all persons.

                                   ARTICLE VII
                                      TRUST

7.01     Trust Agreement

         The Company may, but shall not be required to, adopt a separate Trust
         Agreement for the holding and administration of the funds contributed
         to

                                       11

<PAGE>

         Accounts under the Plan. The Trustee shall maintain and allocate assets
         to a separate account for each Participant under the Plan. The assets
         of any such Trust shall remain subject to the claims of the Company's
         general creditors in the event of the Company's insolvency.

7.02     Expenses of Trust

         The parties expect that any Trust created pursuant to Section 7.01 will
         be treated as a "grantor" trust for federal and state income tax
         purposes and that, as a consequence, such Trust will not be subject to
         income tax with respect to its income. However, if the Trust should be
         taxable, the Trustee shall pay all such taxes out of the Trust. All
         expenses of administering any such Trust shall be a charge against and
         shall be paid from the assets of such Trust.

                                  ARTICLE VIII
                            AMENDMENT AND TERMINATION

8.01     Amendment

         (a)      The Plan may be amended at any time and from time to time,
                  retroactively or otherwise; however, no amendment shall reduce
                  any vested benefit that has accrued on the effective date of
                  such amendment. Each Plan amendment shall be in writing and
                  shall be approved by the Committee and/or Apache's Board of
                  Directors. An officer of Apache to whom the Committee and/or
                  Apache's Board of Directors has delegated the authority to
                  execute Plan amendments shall execute each such amendment or
                  the Plan document restated to include all such Plan
                  amendment(s).

         (b)      The Committee shall have the authority to adopt such
                  modifications, procedures and subplans as may be necessary or
                  desirable to comply with the provisions of the laws
                  (including, but not limited to, tax laws and regulations) of
                  countries other than the United States in which the Company
                  may operate, so as to assure the viability of the benefits of
                  the Plan to Participants employed in such countries.

8.02     Successors and Assigns; Termination of Plan

         The Plan is binding upon Apache and its successors and assigns. The
         Plan shall continue in effect from year to year unless and until
         terminated by Apache's Board of Directors. Any such termination shall
         operate only prospectively and shall not reduce any vested benefit that
         has accrued on the effective date of such termination.

                                       12

<PAGE>

                                   ARTICLE IX
                            STOCK SUBJECT TO THE PLAN

9.01     Number of Shares

         Subject to Section 4.01 and Annex A, and to adjustment pursuant to
         Section 9.03 hereof, three hundred fifty thousand (350,000) shares of
         Stock are authorized for issuance under the Plan in accordance with the
         provisions of the Plan and subject to such restrictions or other
         provisions as the Committee may from time to time deem necessary. This
         authorization may be increased from time to time by approval of the
         Board and the stockholders of Apache if, in the opinion of counsel for
         the Company, such stockholder approval is required. Shares of Stock
         distributed under the terms of the Plan and shares of Stock equal to
         the number of Stock Units and Deferred Restricted Units credited to
         Participants' Accounts maintained under the Plan shall be applied to
         reduce the maximum number of shares of Stock remaining available for
         use under the Plan. However, shares of Stock represented (a) by any
         Stock Units related to the deferral of income (i) from the exercise of
         stock options and/or (ii) from any Other Approved Plan or (b) by any
         Deferred Restricted Units deferred from the Restricted Stock Plan shall
         retain their authorization under the applicable stock option plan,
         under such Other Approved Plan, or under the Restricted Stock Plan, and
         shall not be applied to reduce the number of shares of Stock remaining
         available for use under the Plan. Apache, at all times during the
         existence of the Plan and while any Stock Units and/or Deferred
         Restricted Units are credited to Participants' Accounts maintained
         under the Plan, shall retain as Stock in Apache's treasury at least the
         number of shares from time to time required under the provisions of the
         Plan, or otherwise assure itself of its ability to perform its
         obligations hereunder.

9.02     Other Shares of Stock

         The shares of Stock represented by any Stock Units or any Deferred
         Restricted Units from dividend amounts that are forfeited, and any
         shares of Stock that for any other reason are not issued to a
         Participant or are forfeited, shall again become available for use
         under the Plan.

9.03     Adjustments for Stock Split, Stock Dividend, Etc.

         If Apache shall at any time increase or decrease the number of its
         outstanding shares of Stock or change in any way the rights and
         privileges of such shares by means of the payment of a Stock dividend
         or any other distribution upon such shares payable in Stock, or through
         a Stock split, subdivision, consolidation, combination,
         reclassification or recapitalization involving the Stock, then in
         relation to the Stock that is affected by one or more of the above
         events, the numbers, rights and privileges of the following shall be
         increased, decreased or

                                       13

<PAGE>

         changed in like manner as if they had been issued and outstanding,
         fully paid and nonassessable at the time of such occurrence: (i) the
         shares of Stock remaining available for use under the Plan; and (ii)
         the shares of Stock then represented by Stock Units and Deferred
         Restricted Units credited to Participants' Accounts maintained under
         the Plan.

9.04     Dividend Payable in Stock of Another Corporation, Etc.

         If Apache shall at any time pay or make any dividend or other
         distribution upon the Stock payable in securities or other property
         (except cash or Stock), a proportionate part of such securities or
         other property shall be set aside for Stock Units and Deferred
         Restricted Units credited to Participants' Accounts maintained under
         the Plan and delivered to any Participant upon distribution pursuant to
         the terms of the Plan. Prior to the time that any such securities or
         other property are delivered to a Participant in accordance with the
         foregoing, Apache shall be the owner of such securities or other
         property and shall have the right to vote the securities, receive any
         dividends payable on such securities, and in all other respects shall
         be treated as the owner. If securities or other property which have
         been set aside by Apache in accordance with this Section are not
         delivered to a Participant because all or part of his Stock Units
         and/or Deferred Restricted Units are forfeited pursuant to the terms of
         the Plan, then the applicable portion of such securities or other
         property shall remain the property of Apache and shall be dealt with by
         Apache as it shall determine in its sole discretion.

9.05     Other Changes in Stock

         In the event there shall be any change, other than as specified in
         Sections 9.03 and 9.04 hereof, in the number or kind of outstanding
         shares of Stock or of any stock or other securities into which the
         Stock shall be changed or for which it shall have been exchanged, and
         if the Committee shall in its discretion determine that such change
         equitably requires an adjustment in the number or kind of shares (i)
         remaining available for use under the Plan and/or (ii) represented by
         Stock Units and Deferred Restricted Units credited to Participants'
         Accounts maintained under the Plan, then such adjustments shall be made
         by the Committee and shall be effective for all purposes of the Plan.

9.06     Rights to Subscribe

         If Apache shall at any time grant to the holders of its Stock rights to
         subscribe pro rata for additional shares thereof or for any other
         securities of Apache or of any other corporation, there shall be
         reserved with respect to the Stock Units and Deferred Restricted Units
         credited to Participants' Accounts maintained under the Plan the Stock
         or other securities which the Participant would have been entitled to
         subscribe for if immediately prior to such grant the shares of Stock
         represented by such Stock Units and Deferred Restricted Units had been
         issued

                                       14

<PAGE>

         and outstanding. If, at the time of distribution under the terms of the
         Plan, the Participant subscribes for the additional shares or other
         securities, the price that is payable by the Participant for such
         additional shares or other securities shall be withheld from such
         distribution pursuant to Section 5.05 hereof.

9.07     Change of Control

         (a)      In the event of the occurrence of a change of control of
                  Apache, as defined below, all unvested Stock Units credited to
                  Participants' Accounts shall become automatically vested,
                  without further action by the Committee or the Board, so that
                  such unvested Stock Units become fully vested and payable as
                  of the date of such change of control. All Stock Units and
                  Deferred Restricted Units credited to Participants' Accounts
                  shall be distributed in one lump sum as soon as
                  administratively possible after the date of such change of
                  control, regardless of any distribution election made by the
                  Participant.

         (b)      For purposes of this Plan, a "change of control" shall mean
                  any of the events specified in Apache's Income Continuance
                  Plan or any successor plan which constitute a change of
                  control within the meaning of such plan.

9.08     General Adjustment Rules

         No adjustment or substitution provided for in this Article IX shall
         require Apache to sell or otherwise issue a fractional share of Stock.
         All benefits payable under the Plan shall be distributed in whole
         shares of Stock, with any fractional shares paid in cash.

9.09     Determination by the Committee, Etc.

         Adjustments under this Article IX shall be made by the Committee, whose
         determinations with regard thereto shall be final and binding upon all
         parties thereto.

                                    ARTICLE X
                          REORGANIZATION OR LIQUIDATION

In the event that Apache is merged or consolidated with another corporation and
Apache is not the surviving corporation, or if all or substantially all of the
assets or more than 20 percent of the outstanding voting stock of Apache is
acquired by any other corporation, business entity or person, or in case of a
reorganization (other than a reorganization under the United States Bankruptcy
Code) or liquidation of the Company, and if the provisions of Section 9.07
hereof do not apply, the Committee, or the board of directors of any corporation
assuming the obligations of the Company, shall, as to the Plan and any Stock
Units and Deferred Restricted Units credited to

                                       15

<PAGE>

Participants' Accounts maintained under the Plan, either (i) make appropriate
provision for the adoption and continuation of the Plan by the acquiring or
successor corporation and for the protection of any Stock Units and Deferred
Restricted Units credited to Participants' Accounts maintained under the Plan by
the substitution on a equitable basis of appropriate stock of Apache or of the
merged, consolidated or otherwise reorganized corporation which will be issuable
with respect to the Stock, provided that no additional benefits shall be
conferred upon the Participants with respect to such Stock Units and Deferred
Restricted Units as a result of such substitution or (ii) upon written notice to
the Participants, provide that all distributions from the Plan shall be made
within a specified number of days of the date of such notice. In the latter
event, the Committee shall accelerate the vesting of all unvested Stock Units
credited to Participants' Accounts so that (a) all such Stock Units become fully
vested and (b) all Stock Units and Deferred Restricted Units are payable prior
to any such event.

                                   ARTICLE XI
                                  MISCELLANEOUS

11.01    Funding of Benefits -- No Fiduciary Relationship

         Benefits shall be paid either out of the Trust or, if no Trust is in
         existence or if the assets in the Trust are insufficient to provide
         fully for such benefits, then such benefits shall be distributed by the
         Company out of its general assets. Nothing contained in the Plan shall
         be deemed to create any fiduciary relationship between the Company and
         the Participants. Notwithstanding anything herein to the contrary, to
         the extent that any person acquires a right to receive benefits under
         the Plan, such right shall be no greater than the right of any
         unsecured general creditor of the Company, except to the extent
         provided in the Trust Agreement, if any.

11.02    Right to Terminate Employment

         The Company may terminate the employment of any Participant as freely
         and with the same effect as if the Plan were not in existence.

11.03    Inalienability of Benefits

         No Participant shall have the right to assign, transfer, hypothecate,
         encumber or anticipate his interest in any benefits under the Plan, nor
         shall the benefits under the Plan be subject to any legal process to
         levy upon or attach the benefits for payment for any claim against the
         Participant or his spouse. If, notwithstanding the foregoing provision,
         any Participant's benefits are garnished or attached by the order of
         any court, the Company may bring an action for declaratory judgment in
         a court of competent jurisdiction to determine the proper recipient of
         the benefits to be distributed pursuant to the Plan. During the
         pendency of the action, any benefits that become distributable shall be
         paid into the court, as they

                                       16

<PAGE>

         become distributable, to be distributed by the court to the recipient
         it deems proper at the conclusion of the action.

11.04    Claims Procedure

         (a)      The Participant, his spouse or the authorized representative
                  of the claimant shall file all claims in writing, by
                  completing such procedures as the Committee shall require.
                  Such procedures shall be reasonable and may include the
                  completion of forms and the submission of documents and
                  additional information.

         (b)      If a claim is denied, notice of denial shall be furnished by
                  the Committee to the claimant within 90 days after the receipt
                  of the claim by the Committee, unless special circumstances
                  require an extension of time for processing the claim, in
                  which event notification of the extension shall be provided to
                  the Participant or beneficiary and the extension shall not
                  exceed 90 days.

         (c)      The Committee shall provide adequate notice, in writing, to
                  any claimant whose claim as been denied, setting forth the
                  specific reasons for such denial, specific reference to
                  pertinent Plan provisions, a description of any additional
                  material or information necessary for the claimant to perfect
                  his claims and an explanation of why such material or
                  information is necessary, all written in a manner calculated
                  to be understood by the claimant. Such notice shall include
                  appropriate information as to the steps to be taken if the
                  claimant wishes to submit his claim for review. The claimant
                  or the claimant's authorized representative may request such
                  review within the reasonable period of time prescribed by the
                  Committee. In no event shall such a period of time be less
                  than 60 days. A decision on review shall be made not later
                  than 60 days after the Committee's receipt of the request for
                  review. If special circumstances require a further extension
                  of time for processing, a decision shall be rendered not later
                  than 120 days following the Committee's receipt of the request
                  for review. If such an extension of time for review is
                  required, written notice of the extension shall be furnished
                  to the claimant prior to the commencement of the extension.
                  The decision on review shall be furnished to the claimant.
                  Such decision shall be in writing and shall include specific
                  reasons for the decision, written in a manner calculated to be
                  understood by the claimant, as well as specific references to
                  the pertinent Plan provisions on which the decision is based.

11.05    Disposition of Unclaimed Distributions

         Each Participant must file with the Company from time to time in
         writing his post office address and each change of post office address.
         Any communication, statement or notice addressed to a Participant at
         his last post office address on file with the Company, or if no address
         is filed with the Company, then at his last

                                       17

<PAGE>

         post office address as shown on the Company's records, will be binding
         on the Participant and his spouse for all purposes of the Plan. The
         Company shall not be required to search for or locate a Participant or
         his spouse.

11.06    Distributions Due Infants or Incompetents

         If any person entitled to a distribution under the Plan is an infant,
         or if the Committee determines that any such person is incompetent by
         reason of physical or mental disability, whether or not legally
         adjudicated an incompetent, the Committee shall have the power to cause
         the distributions becoming due to such person to be made to another for
         his benefit, without responsibility of the Committee to see to the
         application of such distributions. Distributions made pursuant to such
         power shall operate as a complete discharge of the Company, the
         Trustee, if any, and the Committee.

11.07    Governing Law

         The Plan and all Election Agreements shall be construed in accordance
         with the Code and, to the extent applicable, the laws of the State of
         Texas excluding any conflicts-of-law provisions.

July 17, 2002

ATTEST:                                      APACHE CORPORATION

/s/ Cheri L. Peper                           /s/ Jeffrey M. Bender
----------------------------------           ----------------------------------
Cheri L. Peper                               Jeffrey M. Bender
Corporate Secretary                          Vice President, Human Resources

                                       18

<PAGE>

                                     ANNEX A
                    APACHE CORPORATION DEFERRED DELIVERY PLAN
                          STOCK BONUS AWARD PROVISIONS

From time to time, grants of stock bonus awards for specified numbers of Stock
Units (each a "Stock Bonus Award") may be made to Participants under the terms
of the Plan. Capitalized terms used in this Annex A shall have the meaning set
forth in the Plan or herein, as the case may be.

Grants of Stock Bonus Awards shall be made by the Committee. The Stock Units
covered by each Stock Bonus Award shall be credited to the Participant's Account
maintained under the Plan.

In accordance with the provisions of the Plan, the Committee shall, in its sole
discretion, select the Participants to receive Stock Bonus Awards. For each
stock Bonus Award, the Committee shall:

         -        specify the date of grant and number of Stock Units granted;

         -        designate the vesting provisions; and

         -        establish such other terms and requirements as deemed
                  necessary or desirable and consistent with the Plan.

Each Stock Bonus Award shall be evidenced by a written agreement containing the
particular provisions of such award and in such form as the Committee shall
determine.

Upon the grant and/or vesting of each Stock Bonus Award, the Participant shall
make appropriate arrangements with the Company to provide for the amount of all
applicable federal, state and local income and other tax withholding
requirements. As used in the Plan, the phrase "income from the grant of a Stock
Bonus Award" shall mean the amount calculated by multiplying (a) the number of
Stock Units covered by the Stock Bonus Award, times (b) the Fair Market Value of
the Stock for the date of grant.

Except as set forth in this Annex A and/or in the applicable written agreement,
each Stock Bonus Award and the Stock Units related thereto shall be subject to
all other terms and conditions set forth in the Plan.

                                      A-1

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