Document:

exv10wfw1

 

EXHIBIT 10.F.1

AMENDMENT NO. 1 TO THE

EL PASO ENERGY CORPORATION

2001 OMNIBUS INCENTIVE COMPENSATION PLAN

     Pursuant to Section 16.1 of the El Paso Energy Corporation 2001 Omnibus Incentive Compensation
Plan, effective as of January 29, 2001 (the “Plan”), the Plan is hereby amended as follows,
effective February 7, 2001:

     WHEREAS, the Certificate of Incorporation of El Paso Energy Corporation, a Delaware
corporation, was amended to change the name of the corporation to El Paso Corporation effective
February 7, 2001.

     NOW THEREFORE, the name of the Plan is hereby changed to the “El Paso Corporation 2001 Omnibus
Incentive Compensation Plan” and all references in the Plan to “El Paso Energy Corporation” or the
“Company” shall mean “El Paso Corporation.”

     IN WITNESS WHEREOF, the Company has caused this amendment to be duly executed on this
7th day of February 2001.

	 	 	 	 	 
	 	EL PASO CORPORATION

 	 
	 	By:  	/s/ Joel Richards III
 	 
	 	 	Joel Richards III 	 
	 	 	Executive Vice President

Human Resources and Administration 	 
	 

Attest:

	 	 	 	 	 
	 	 	 
	 	       /s/ David L. Siddall
 	 
	 	Corporate Secretaryexv10wfw2

 

EXHIBIT 10.F.2

AMENDMENT NO. 2 TO THE

EL PASO CORPORATION

2001 OMNIBUS INCENTIVE COMPENSATION PLAN

     Pursuant to Section 16.1 of the El Paso Corporation 2001 Omnibus Incentive Compensation Plan,
effective as of January 29, 2001 (the “Plan”), the Plan is hereby amended as follows, effective
April 1, 2001:

     WHEREAS, the Company desires to clarify a provision of the Plan to reflect the intent of the
Board of Directors and the Compensation Committee relating to the amount of additional Restricted
Stock that may be awarded to Participants due to the risks of forfeiture, price fluctuation, and
other attendant risks associated with Restricted Stock awarded under the Plan pursuant to Sections
11.5(a)(ii) or 11.5(b)(ii), or in lieu of receiving all or any portion of cash awarded in
accordance with Sections 11.5(a)(i) or 11.5(b)(i).

     NOW THEREFORE, Section 11.5(c) is hereby deleted in its entirety and replaced with the
following:

“(c) Because the Participant bears forfeiture, price fluctuation, and other
attendant risks during the Restriction Period (as defined in Section 10.4)
associated with the Restricted Stock awarded under this Plan, Participants shall
be awarded an additional amount of Restricted Stock equal to the amount of
Restricted Stock which a Participant is awarded pursuant to Sections 11.5(a)(ii)
or 11.5(b)(ii), as applicable, or such other amount of Restricted Stock as
determined by the Plan Administrator.”

     IN WITNESS WHEREOF, the Company has caused this amendment to be duly executed on this
1st day of April 2001.

	 	 	 	 	 
	 	EL PASO CORPORATION

 	 
	 	By:  	     /s/ Joel Richards III
 	 
	 	 	Joel Richards III 	 
	 	 	Executive Vice President

Human Resources and Administration 	 
	 

     Attest:

	 	 	 	 	 
	 	 	 
	 	/s/ David L. Siddall
 	 
	 	Corporate Secretaryexv10wfw3

 

EXHIBIT 10.F.3

AMENDMENT NO. 3 TO THE

EL PASO CORPORATION

2001 OMNIBUS INCENTIVE COMPENSATION PLAN

     Pursuant to Section 16.1 of the El Paso Corporation 2001 Omnibus Incentive Compensation Plan,
effective as of January 29, 2001, as amended (the “Plan”), the Plan is hereby amended as follows,
effective July 17, 2002:

     WHEREAS, the Company desires to clarify provisions of the Plan to reflect the intent of the
Board of Directors and the Compensation Committee relating to the required payment of incentive
awards and restricted stock election pursuant to Sections 11.5 and 11.6 of the Plan.

     NOW THEREFORE, the following amendments shall be made to the Plan:

     Section 11.5 is hereby deleted in its entirety and replaced with the following:

     “11.5 Required Payment of Incentive Awards

     The Plan Administrator, or the Management Committee in the case of Participants other
than Section 16 Insiders or employees subject to Section 162(m), shall make a determination
within thirty (30) days after the Company’s financial information is available for a
particular Performance Period (the “Award Date”) whether the Performance Goals for that
Performance Period have been achieved and the amount of the award for each Participant. In
the absence of an election by the Participant pursuant to Sections 11.6 or 11.7, the award
shall be paid not later than the end of the month following the month in which the Plan
Administrator determines the amount of the award and shall be paid as follows.

(a) Participants shall receive their awards in any combination of cash
and/or Restricted Stock as determined by the Plan Administrator.

(b) Because the Participant bears forfeiture, price fluctuation, and other
attendant risks during the Restriction Period (as defined in Section 10.4)
associated with the Restricted Stock awarded under this Plan, the Plan
Administrator or Management Committee, as appropriate, may decide that
Participants who are awarded Restricted Stock shall be awarded an
additional amount of Restricted Stock up to the amount of Restricted Stock
which a Participant is awarded pursuant to Sections 11.5(a). No
additional amount of Restricted Stock is required to be awarded pursuant
to this Section 11.5(b).”

 

 

     Section 11.6 shall be deleted in its entirety and replaced with the following:

     “11.6 Restricted Stock Election

     In lieu of receiving all or any portion of the cash in accordance with
Sections 11.5(a), a Participant designated by the Plan Administrator or Management
Committee, as appropriate, may elect to receive additional Restricted Stock with a
value equal to the portion of the Incentive Award which the Participant would
otherwise have received in cash, but has elected to receive in Restricted Stock
(“Restricted Stock Election”). Participants must make their Restricted Stock
Election at such time and in such a manner as prescribed by the Management
Committee. The Plan Administrator or Management Committee, as appropriate, may
determine that each Participant who makes the Restricted Stock Election shall be
awarded the additional Restricted Stock granted pursuant to Section 11.5(b) up to
the amount of the Participant’s Restricted Stock Election. Notwithstanding the
foregoing no additional amount of Restricted Stock is required to be awarded
pursuant to this Section 11.6. Except as provided in Section 10, all shares of
Restricted Stock awarded pursuant to the Restricted Stock Election are subject to
the same terms and conditions as the Restricted Stock a Participant receives
pursuant to Sections 11.5(a).”

     All references to Sections 11.5(a)(ii) and/or 11.5(b)(ii) shall be changed to Section 11.5(a)
and Section 11.5(c) shall be changed to Section 11.5(b).

     IN WITNESS WHEREOF, the Company has caused this amendment to be duly executed on this
17th day of July 2002.

	 	 	 	 	 
	 	EL PASO CORPORATION

 	 
	 	By:  	     /s/ Joel Richards III
 	 
	 	 	Joel Richards III 	 
	 	 	Executive Vice President

Human Resources and Administration 	 
	 

Attest:

	 	 	 	 	 
	 	 	 
	 	  /s/ David L. Siddall
 	 
	 	Corporate Secretaryexv10wg

 

EXHIBIT 10.G

EL PASO CORPORATION

SUPPLEMENTAL BENEFITS PLAN

Amended and Restated Effective as of December 7, 2001

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	SECTION 1

	 	PURPOSES
	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 2

	 	DEFINITIONS
	 	 	1	 
	2.1

	 	Beneficiary
	 	 	1	 
	2.2

	 	Board
	 	 	1	 
	2.3

	 	Change in Control
	 	 	1	 
	2.4

	 	Code
	 	 	2	 
	2.5

	 	Company
	 	 	2	 
	2.6

	 	Deferred Compensation Plans
	 	 	2	 
	2.7

	 	Employer
	 	 	3	 
	2.8

	 	Management Committee
	 	 	3	 
	2.9

	 	Participant
	 	 	3	 
	2.10

	 	Pension Plan
	 	 	3	 
	2.11

	 	RSP
	 	 	3	 
	2.12

	 	Surviving Spouse
	 	 	3	 
	 
	 	 	 	 	 	 
	SECTION 3

	 	ADMINISTRATION
	 	 	3	 
	3.1

	 	Management Committee
	 	 	3	 
	 
	 	 	 	 	 	 
	SECTION 4

	 	PARTICIPANTS
	 	 	4	 
	4.1

	 	Participants
	 	 	4	 
	 
	 	 	 	 	 	 
	SECTION 5

	 	BENEFITS
	 	 	4	 
	5.1

	 	Supplemental Pension Benefits
	 	 	4	 
	5.2

	 	Supplemental RSP Benefits
	 	 	5	 
	5.3

	 	Other Supplemental Benefits
	 	 	6	 
	5.4

	 	Time and Manner of Payment
	 	 	6	 
	5.5

	 	Determination of Supplemental Pension Benefit Payments
	 	 	7	 
	5.6

	 	Provisions Regarding Certain Former Sonat Employees
	 	 	8	 
	5.7

	 	Provisions Regarding Certain Former Coastal Employees
	 	 	10	 
	 
	 	 	 	 	 	 
	SECTION 6

	 	GENERAL PROVISIONS
	 	 	11	 
	6.1

	 	Unfunded Obligation
	 	 	11	 
	6.2

	 	Discretionary Investment by Company
	 	 	11	 
	6.3

	 	Incapacity of Participant, Surviving Spouse or Beneficiary
	 	 	12	 
	6.4

	 	Nonassignment
	 	 	12	 
	6.5

	 	No Right to Continued Employment
	 	 	12	 
	6.6

	 	Withholding Taxes
	 	 	12	 
	6.7

	 	Termination and Amendment
	 	 	13	 
	6.8

	 	ERISA Exemption
	 	 	13	 
	6.9

	 	Applicable Law
	 	 	13	 

 

			
	El Paso Corporation

Supplemental Benefits Plan
	 	Table of Contents

- i -

 

EL PASO CORPORATION

SUPPLEMENTAL BENEFITS PLAN

Amended and Restated Effective as of December 7, 2001

SECTION 1 PURPOSES

     The purposes of the El Paso Corporation Supplemental Benefits Plan (the “Plan”) are to attract
and retain exceptional executives by providing retirement or termination benefits to selected
officers and key management employees of outstanding competence. This Plan is effective January
15, 1992.

SECTION 2 DEFINITIONS

     For purposes of this Plan, the following terms shall have the meanings indicated:

2.1 Beneficiary

     “Beneficiary” means the individual(s) designated by a Participant to receive benefits from
this Plan in the event of his or her death. If no designated Beneficiary survives the Participant,
the Beneficiary shall be the person or persons in the first of the following classes who survive
the Participant:

	 	(a)	 	spouse at date of death,
	 
	 	(b)	 	descendants, per stirpes,
	 
	 	(c)	 	parents,
	 
	 	(d)	 	brothers and sisters,
	 
	 	(e)	 	estate.

2.2 Board

     “Board” means the Board of Directors of the Company.

2.3 Change in Control

     A “Change in Control” shall be deemed to occur:

     (a) if any person (as such term is used in Sections 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) is or becomes the
“beneficial owner” (as defined in Rule 13d-3 of the Exchange Act),

 

			
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Supplemental Benefits Plan
	 	Page 1

 

 

directly or indirectly, of securities of the Company representing 20% or more of the
combined voting power of the Company’s then outstanding securities;

     (b) upon the first purchase of the Company’s Common Stock pursuant to a tender or
exchange offer (other than a tender or exchange offer made by the Company);

     (c) upon the approval by the Company’s stockholders of a merger or consolidation, a
sale or disposition of all or substantially all of the Company’s assets or a plan of
liquidation or dissolution of the Company; or

     (d) if, during any period of two consecutive years, individuals who at the beginning
of such period constitute the Board of Directors of the Company cease for any reason to
constitute at least a majority thereof, unless the election or nomination for the election
by the Company’s stockholders of each new director was approved by a vote of at least
two-thirds of the directors then still in office who were directors at the beginning of the
period.

     Notwithstanding the foregoing, a Change in Control shall not be deemed to occur if the Company
either merges or consolidates with or into another company or sells or disposes of all or
substantially all of its assets to another company, if such merger, consolidation, sale or
disposition is in connection with a corporate restructuring wherein the stockholders of the Company
immediately before such merger, consolidation, sale or disposition own, directly or indirectly,
immediately following such merger, consolidation, sale or disposition at least eighty percent (80%)
of the combined voting power of all outstanding classes of securities of the company resulting from
such merger or consolidation, or to which the Company sells or disposes of its assets, in
substantially the same proportion as their ownership in the Company immediately before such merger,
consolidation, sale or disposition.

2.4 Code

     “Code” means the Internal Revenue Code of 1986, as amended.

2.5 Company

     “Company” means El Paso Corporation (f/k/a/ El Paso Energy Corporation), a Delaware
corporation.

2.6 Deferred Compensation Plans

     “Deferred Compensation Plans” means the El Paso Corporation Deferred Compensation Plan, 2001
Omnibus Incentive Compensation Plan, 1999 Omnibus Incentive Compensation Plan, 1995 Incentive
Compensation Plan, 1995 Omnibus Compensation Plan, Strategic Stock Plan and other similar plans
maintained by an

 

			
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Supplemental Benefits Plan
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Employer and such additional deferred compensation plans as may be designated by the Company from
time to time.

2.7 Employer

     “Employer” means El Paso Corporation, and its subsidiaries.

2.8 Management Committee

     “Management Committee” means the committee appointed pursuant to Section 3.1 to administer the
Plan.

2.9 Participant

     “Participant” means each individual who participates in the Plan in accordance with Section 4.

2.10 Pension Plan

     “Pension Plan” means the El Paso Corporation Pension Plan and any pension plans maintained by
an Employer.

2.11 RSP

     “RSP” means the El Paso Corporation Retirement Savings Plan.

2.12 Surviving Spouse

     “Surviving Spouse” means the person to whom surviving spouse death benefits are to be paid
pursuant to the terms of the Pension Plan.

SECTION 3 ADMINISTRATION

3.1 Management Committee

     This Plan shall be administered by the Management Committee consisting of the Chief Executive
Officer of the Company and such other senior officers of the Company as he or she shall designate.
Subject to the compensation committee (the “Compensation Committee”) of the Board of Directors, the
Management Committee shall interpret the Plan, prescribe, amend and rescind rules relating to it,
select eligible Participants, and take all other action 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.

 

			
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Supplemental Benefits Plan
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SECTION 4 PARTICIPANTS

4.1 Participants

     The Management Committee shall determine and designate the officers and key management
employees of an Employer who are eligible to become Participants and receive benefits under the
Plan. Each Participant must be a selected management or highly compensated employee, or entitled
to qualified plan benefits in excess of the Code Section 415 limitations on benefits. A
Participant who is not a selected management or highly compensated employee shall be eligible only
for the benefits described in Sections 5.1(a) and 5.2(a).

SECTION 5 BENEFITS

5.1 Supplemental Pension Benefits

     Upon termination of employment of a Participant, the Company shall pay or cause to be paid to
such Participant (or his or her Surviving Spouse in the case of his or her death) supplemental
pension benefits under this Plan which, when combined with the amounts he or she is entitled to
receive under the Pension Plan shall be the actuarial equivalent of the retirement, or Surviving
Spouse death benefits, which would have been payable to the Participant or his or her Surviving
Spouse had the Pension Plan’s benefit formula been applied:

     (a) without regard to the limitations of Section 415 of the Code (including, without
limitation, the maximum benefit payable under Section 415(b)(1), the actuarial reduction
for early retirement of Section 415(b)(2)(C), the reduction for limited service or
participation of Section 415(b)(5) and the combined limits of Section 415(e)),

     (b) by including in the Participant’s compensation during the period for which the
Pension Plan benefits are computed, to the extent not already done so under the Pension
Plan, any amount that has not been taken into account due to the limitations of Section
401(a)(17) of the Code or due to a reduction of compensation that has occurred pursuant to
an election of the Participant under Section 125 or Section 401(k) of the Code or under the
Deferred Compensation Plans, and

     (c) by taking into account any service granted to the Participant and any benefit
formula adjustments required by an employment contract.

     Supplemental pension benefits under this Section 5 shall be vested and nonforfeitable to the
same extent that the related benefits under the Pension Plan are vested and nonforfeitable.
Notwithstanding the preceding sentence, in the event of a

 

			
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Supplemental Benefits Plan
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Change in Control, the supplemental pension benefits computed under this Section 5.1 shall be fully
vested and nonforfeitable immediately.

5.2 Supplemental RSP Benefits

     Upon termination of employment of a Participant, the Company shall pay or cause to be paid to
such Participant (or his or her Beneficiary in the case of his or her death) supplemental RSP
benefits calculated as described below. The Company shall periodically determine the amount of any
additional Employer matching contributions that would have been credited to a Participant’s account
under the RSP if his or her current election of Participant contributions had been given effect and
no adjustment of such contributions had occurred due to:

     (a) the maximum dollar limit under Code Section 415(c)(1)(A) on RSP annual additions,

     (b) the maximum limit under Code Section 401(a)(17) on the compensation taken into
account under the RSP,

     (c) any further reductions in the compensation taken into account under the RSP as a
result of any deferrals of compensation elected by the Participant pursuant to Section 125
or Section 401(k) of the Code or under the Deferred Compensation Plans.

     From time to time, as determined by the Management Committee, the Company shall allocate
amounts equal to such additional Employer matching contributions to a ledger account (the
“Memorandum Account”) to be established in the El Paso Corporation Deferred Compensation Plan, as
it may be amended (the “Deferred Compensation Plan”) for the Participant as of the time or times
that such amounts would have been contributed to the RSP if permitted thereunder. Interest or
earnings/losses, as applicable, will be credited to the balance in each Participant’s Memorandum
Account on a semi-monthly basis or at such other intervals as may be determined by the Management
Committee. The Management Committee shall determine the rate of interest or earnings/losses
periodically and in so doing may take into account the earnings, losses, appreciation or
depreciation attributable to any discretionary investment made pursuant to Section 6.2, and any
other factors it deems appropriate. Notwithstanding any other provision to the contrary, any and
all supplemental RSP benefits determined pursuant to this Plan shall be credited to the Deferred
Compensation Plan.

     Supplemental RSP benefits under this Section 5.2 shall be vested and nonforfeitable to the
same extent that the related benefits under the RSP are vested and nonforfeitable.

 

			
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Supplemental Benefits Plan
	 	Page 5

 

 

5.3 Other Supplemental Benefits

     Upon the termination of employment of a Participant, the Company shall pay or cause to be paid
to such Participant (or his or her Beneficiary in the case of his or her death) other supplemental
benefits as determined by the Board and contained in any other plan or program maintained by the
Company or in the Participant’s employment contract or other agreement with the Company. Other
supplemental benefits under this Section 5.3 shall be vested and nonforfeitable to the extent
provided in the applicable plan or program maintained by the Company or the Participant’s
employment contract or other agreement with the Company.

5.4 Time and Manner of Payment

     The payment of any benefits shall be made as provided below. Such payment or payments shall
constitute a complete discharge of all obligations to the Participant and his or her Surviving
Spouse or Beneficiary under the Plan.

     (a) Supplemental Pension Benefit Payments. The amount of the payments under this
subparagraph 5.4(a) shall be determined pursuant to Section 5.5.

     (i) The payment of any supplemental benefits pursuant to Section 5.1 owed to a
Participant (or his or her Surviving Spouse) shall be made in a lump sum if such
Participant (A) terminates employment with the Employer prior to attaining age 55,
or (B) dies while employed with the Employer. The payment shall be made as soon as
practicable after the Participant’s termination of employment with the Employer or
death.

     (ii) In the absence of a valid, irrevocable election made by a Participant
pursuant to the provisions described in (iii) below, the payment of any
supplemental pension benefits pursuant to Section 5.1 owed to a Participant who
terminates employment with the Employer after attaining age 55 shall be made in a
lump sum as soon as practicable after the Participant terminates employment with
the Employer. The amount of such payments shall be determined under Section 5.5
below.

     (iii) In the case of a benefit payable under Section 5.1, the Participant may
irrevocably elect one of the forms of payment described in (iv) below. Such
election must be made by the Participant before the later of (A) the date the
Participant attains age 53, or (B) 30 days after becoming a Participant. For such
election to become effective, the Participant must remain in continuous active
employment with the Employer for at least two years or, in the case of an election
made pursuant to clause (B), such Participant must remain in continuous active
employment for a minimum of six months following such election. In no

 

			
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Supplemental Benefits Plan
	 	Page 6

 

 

event will an election become effective if the Participant terminates employment
with the Employer prior to attaining age 55, or dies in service.

     (iv) A Participant may elect only one of the following forms of payment:

     (A) A lump sum;

     (B) Monthly payments made over a five-year period, notwithstanding
the earlier death of the Participant;

     (C) Monthly payments made over a ten-year period, notwithstanding
the earlier death of the Participant; or

     (D) Monthly payments made over the remaining life of the
Participant.

     In the case of option (A), payment will be made as soon as practicable after the
Participant’s termination of employment with the Employer. In the case of (B), (C) and
(D), monthly payments will commence as soon as practicable after the Participant’s
termination of employment with the Employer.

     (b) Supplemental RSP Benefit Payments. The payment of any supplemental RSP benefits
pursuant to Section 5.2 owed to a Participant (or his or her Beneficiary) shall be made in
a lump sum as soon as practicable after the Participant’s termination of employment with
the Employer and shall be in an amount equal to the Participant’s Memorandum Account
balance at the time of such payment, subject to other applicable terms and conditions of
the Deferred Compensation Plan (other than the time and manner of payment).

     (c) Other Supplemental Benefit Payments. The payment of any other supplemental
benefits pursuant to another plan or program maintained by the Company or a Participant’s
employment contract or other agreement with the Company under Section 5.3 shall be made as
provided in such other applicable plan, program, employment contract or agreement.

5.5 Determination of Supplemental Pension Benefit Payments

     The amount of a payment of supplemental pension benefits pursuant to Section 5.1 to a
Participant (or his or her Surviving Spouse in the event of the Participant’s termination of
employment on account of death) shall be determined by calculating the benefit according to the
terms of the Pension Plan as a single life annuity. If another form of payment is payable, the
amount under such form shall be actuarially equivalent to such single life benefit using the
interest rate and mortality assumptions for calculating lump sum distributions under the Pension
Plan.

 

			
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Supplemental Benefits Plan
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5.6 Provisions Regarding Certain Former Sonat Employees

     (a) Definitions. For purposes of this Section 5.6:

     “Actuarial Equivalent” shall mean a benefit actuarially equal in value to the value of
a given benefit in a given form or schedule, based upon (1) the 1983 Group Annuity
Mortality Table and (2) an interest rate equal to 5.24% (the yield on new 7-12 year
AA-rated general obligation tax-exempt bonds as determined by Merrill Lynch & Co. (or its
affiliates) and published in The Wall Street Journal on December 30, 1999, all as set forth
in the Sonat Supplemental Plan).

     “Eligible Spouse” shall mean the person who was married to the Participant under the
laws of the State where the marriage was contracted throughout the one-year period ending
on December 31, 1999.

     “Sonat Retirement Plan” shall mean the Sonat Inc. Retirement Plan, as in effect as of
December 31, 1999.

     “Sonat Supplemental Plan” shall mean the Sonat Inc. Supplemental Benefit Plan, as in
effect on December 31, 1999.

     “Credited Service,” “Retirement Benefit,” “Survivors Benefit,” “Termination of
Employment,” “Vested Benefit,” “Vesting Date” and “Vesting Service” shall have the meanings
set forth in the Sonat Retirement Plan.

     (b) Supplemental Pension Benefits. Upon termination of employment of a Participant
who (1) was a Participant in this Plan on January 1, 2000, and (2) was a “Participant” in
Article II of the Sonat Supplemental Plan, the supplemental pension benefits payable under
this Plan, when expressed in the form of a cash lump sum, shall equal the greater of (A)
the amount determined pursuant to Section 5.1 (calculated in lump sum form as provided in
Section 5.5), and (B) the Sonat Preserved Benefit (as defined below).

     The Sonat Preserved Benefit, expressed in the form of a cash lump sum, shall be equal
to the sum of:

     (i) the Actuarial Equivalent of the excess, if any, of (1) the amount that
hypothetically would have been payable to the Participant as a Retirement Benefit
or a Vested Benefit, as the case may be, under the Sonat Retirement Plan if
Sections 401(a)(17) and 415 of the Code were nonexistent and the provisions of the
Sonat Retirement Plan incorporating the limitations contained in Sections
401(a)(17) and 415 of the Code were inoperative, over (2) the amount which
hypothetically would have been payable to the Participant as a Retirement Benefit
or Vested Benefit, as the case may be, under the Sonat Retirement Plan upon
application of the actual terms of the Sonat Retirement Plan, assuming that for
purposes of

 

			
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Supplemental Benefits Plan
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clauses (1) and (2) that (A) the Participant had a Termination of Employment (other
than death) on December 31, 1999, (B) the Participant elected to receive such
Retirement Benefit or Vested Benefit in the form of a single life annuity
commencing on the earliest date on which the Participant could have commenced
receipt of his Retirement Benefit or Vested Benefit, as the case may be, under the
terms of the Sonat Retirement Plan, and taking into account the repeal of Code
Section 415(e); plus

     (ii) if the Participant is entitled to a Retirement Benefit and had an
Eligible Spouse on December 31, 1999, the Actuarial Equivalent of the excess, if
any, of (1) the amount that hypothetically would have been payable to the Eligible
Spouse as a Survivors Benefit under the Sonat Retirement Plan upon the death of the
Participant if Sections 401(a)(17) and 415 of the Code were nonexistent and Section
7.10 and the provisions of the Sonat Retirement Plan incorporating the limitations
contained in Sections 401(a)(17) and 415 of the Code were inoperative, over (2) the
amount which hypothetically would have been payable to the Eligible Spouse as a
Survivors Benefit under the Sonat Retirement Plan upon application of the actual
terms of the Sonat Retirement Plan, with such excess to be valued as a reversionary
annuity, payable immediately upon the death of the Participant, and taking into
account the repeal of Code Section 415(e).

     (c) Supplemental RSP Benefits. Each person who (i) was a “Participant” in Article III
of the Sonat Supplemental Plan and (ii) is a Participant in this Plan on January 1, 2000
shall have credited to a Memorandum Account established under Section 5.2 an amount equal
to the sum of (a) the balance of his Accounts in the Sonat Supplemental Plan on December
31, 1999 (determined as set forth in Section 3.2(c) of the Sonat Supplemental Plan) plus
(b) the amount of any credits made under Section 3.2(a) of the Sonat Supplemental Plan in
2000 with respect to pay periods ending before January 1, 2000. Such credit shall be made
effective as of January 1, 2000, shall initially be credited to an Interest Account (as
defined in the El Paso Corporation Deferred Compensation Plan) and shall be paid as
provided in such Plan.

     (d) Vesting Benefits. Upon termination of employment (other than death) after
December 31, 1999 of an employee (whether or not a Participant in this Plan) who was a
“Participant” in Article IV of the Sonat Supplemental Plan, such employee shall be entitled
to a Vesting Benefit, payable in the form of a cash lump sum that is equal in amount to the
Actuarial Equivalent of the excess, if any, of (i) the amount hypothetically payable to the
employee as a Vested Benefit under the Sonat Retirement Plan if (x) Section 5.01 of the
Sonat Retirement Plan were hypothetically amended to provide a Vesting Date based on a
period of Vesting Service equivalent to the actual Vesting Service of the employee, and (y)

 

			
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Sections 401(a)(17) and 415 of the Code were nonexistent and the provisions of the Sonat
Retirement Plan incorporating the limitations contained in Sections 401(a)(17) and 415 of
the Code were inoperative, over (ii) the amount payable as a Vested Benefit under the Sonat
Retirement Plan, assuming for purposes of clauses (i) and (ii) that (A) the employee had a
Termination of Employment (other than death) on December 31, 1999, and (B) the employee
commenced receiving benefits under such clause in the form of a single life annuity on the
earliest date on which the employee could have commenced receipt of a Vested Benefit under
the Sonat Retirement Plan (had he or she been entitled to such Benefit). The grant of
Vesting Benefits shall not increase the employee’s Credited Service under the Sonat
Retirement Plan. Such cash lump-sum payment shall be paid as soon as practicable (and
within 30 days) after the employee’s Termination of Employment.

     The Vesting Benefit payable under this Section 5.6(d) shall be reduced (but not below
$0) by (1) any amounts payable to the employee (when expressed as a cash lump sum) under
Section 5.1 of the Plan, and (2) by any amount paid to the employee under Section 8.5(c) of
the Sonat Supplemental Plan.

5.7 Provisions Regarding Certain Former Coastal Employees

     (a) Definitions. For purposes of this Section 5.7:

     “Actuarial Equivalent” shall mean any one of two or more benefits of equivalent value
as determined actuarially on the basis of such rate of interest and rates of mortality as
shall have been adopted for such purpose.

     “Coastal Pension Plan” shall mean the Pension Plan for Employees of The Coastal
Corporation or the Coastal Coal Company, LLC Pension Plan, as in effect as of January 29,
2001.

     “Coastal Replacement Pension Plan” shall mean The Coastal Corporation Replacement
Pension Plan, as in effect as of January 29, 2001.

     “Retirement Income” shall mean a pension or any other payment or payments payable
under the terms of the Coastal Pension Plan.

     (b) Supplemental Pension Benefits. Upon termination of employment of a Participant
who (1) was a Participant in this Plan on January 29, 2001, and (2) was a “Participant” in
the Coastal Replacement Pension Plan, the supplemental pension benefits payable under this
Plan, when expressed in the form of a cash lump sum, shall equal the greater of (A) the
amount determined pursuant to Section 5.1 (calculated in lump sum form as provided in
Section 5.5), and (B) the Coastal Preserved Benefit (as defined below).

 

			
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     The Coastal Preserved Benefit, expressed in the form of a cash lump sum, shall be
equal to the sum of the Actuarial Equivalent of the excess, if any, of (1) the amount
that hypothetically would have been payable to the Participant as Retirement Income under
the Coastal Pension Plan if Sections 401(a)(17) and 415 of the Code were nonexistent and
the provisions of the Coastal Pension Plan incorporating the limitations contained in
Sections 401(a)(17) and 415 of the Code were inoperative, over (2) the amount which
hypothetically would have been payable to the Participant as Retirement Income under the
Coastal Pension Plan upon application of the actual terms of the Coastal Pension Plan,
assuming for purposes of clauses (1) and (2) that (A) the Participant had a Termination of
Employment (other than death) on January 29, 2001, and (B) the Participant elected to
receive such Retirement Income in the form of a single life annuity commencing on the
earliest date on which the Participant could have commenced receipt of his Retirement
Income under the terms of the Coastal Replacement Pension Plan.

SECTION 6 GENERAL PROVISIONS

6.1 Unfunded Obligation

     The supplemental benefits to be paid to Participants and/or their Surviving Spouses and
Beneficiaries pursuant to this Plan are unfunded obligations of the Company, and shall, until
actual payment, continue to be part of the general funds of the Company. The Company is not
required to segregate any monies from its general funds, or to create any trusts, or to make any
special deposits with respect to these obligations. Beneficial ownership of any investments,
including trust investments, which the Company may make to fulfill these obligations 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 Employer and a Participant, or otherwise create any vested or
beneficial interest in any Participant or his or her Surviving Spouse or Beneficiary or his or her
creditors in any assets of the Employer whatsoever. The Participants and their Surviving Spouses
and Beneficiaries shall have no claim against the Employer for any changes in the value of any
assets which may be invested or reinvested by the Company with respect to this Plan.

6.2 Discretionary Investment by Company

     The Management Committee, after consulting with the actuary employed by the Company in
conjunction with the Pension Plan, may from time to time direct the investment by the Company of an
amount sufficient to meet all or such portion of the supplemental benefits to be paid under this
Plan 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 the amount to be
invested shall be paid into one or

 

			
	El Paso Corporation

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more grantor trusts to be established by the Employer of which it shall be the Beneficiary, and to
the assets of which it shall become entitled as and to the extent that Participants (or their
Surviving Spouses or Beneficiaries in the case of their deaths) receive benefits under this Plan.
The Management Committee may designate an investment advisor to direct investments and
reinvestments of the funds, including investments of any grantor trusts hereunder.

6.3 Incapacity of Participant, Surviving Spouse or Beneficiary

     If the Management Committee finds that any Participant, Surviving Spouse 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 payments due (unless a prior claim therefor
shall have been made by a duly appointed legal representative) at the discretion of the Management
Committee may be paid to the spouse, child, parent or brother or sister of such Participant,
Surviving Spouse or Beneficiary, or to any person whom the Management Committee has determined has
incurred expense for such Participant, Surviving Spouse or Beneficiary. Any such payment shall be
a complete discharge of the obligations of the Company under the provisions of the Plan.

6.4 Nonassignment

     The right of a Participant or his or her Surviving Spouse 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 interests 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.

6.5 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.

6.6 Withholding Taxes

     Provision shall be made for the withholding of taxes under the Federal Insurance Contributions
Act as required by regulations and appropriate income taxes shall be withheld from payments made to
Participants pursuant to this Plan.

 

			
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6.7 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 increase 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, however, impair the right of a Participant or his or her Surviving Spouse or
Beneficiary to receive the supplemental benefits accrued prior to the effective date of such
amendment, suspension or termination. The Board of Directors amended and restated the Plan
effective as of December 7, 2001. The Board of Directors had previously amended and restated the
Plan effective as of 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.

     If the Plan is terminated, Participants, Surviving Spouses and Beneficiaries who have accrued
benefits under the Plan as of the date of termination will receive payment of such benefits at the
times specified in the Plan. Notwithstanding this or any other provision of the Plan to the
contrary, this Plan may not be terminated so long as the Pension Plan and/or RSP remain in effect.

6.8 ERISA Exemption

     The portion of this Plan providing benefits in excess of the limitations of Section 415 of the
Code is intended to qualify for exemption from the Employee Retirement Income Security Act of 1974
(“ERISA”) as an unfunded excess benefit plan under Sections 3(36) and 4(b)(5) of ERISA. The
portion of this Plan providing benefits in excess of the limitation of Section 401(a)(17) of the
Code and other supplemental benefits is intended to qualify for exemption from Parts II, III and IV
of ERISA as a plan maintained primarily for the purpose of providing deferred compensation for a
select group of management or highly compensated employees under Sections 201(2), 301(a)(3) and
401(a)(1) of ERISA.

6.9 Applicable Law

     The Plan shall be construed and governed in accordance with the laws of the State Texas.

 

			
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     IN WITNESS WHEREOF, the Company has caused the Plan to be amended and restated effective as of
December 7, 2001.

	 	 	 	 	 
	 	EL PASO CORPORATION

 	 
	 	By:  	     /s/ Joel Richards III
 	 
	 	 	Joel Richards III 	 
	 	 	Executive Vice President

Human Resources and Administration 	 
	 

	 	 	 
	Attest:
	 	 
	 
	 	 
	/s/ David L. Siddall
 

	 	 
	Corporate Secretary

	 	 

 

			
	El Paso Corporation

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