Document:

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                                                                    EXHIBIT 10.Y

                             STOCK PLEDGE AGREEMENT

         STOCK PLEDGE AGREEMENT dated as of February 1, 2001 is made and entered
into by and between El Paso Energy Corporation, a Delaware corporation (the
"Parent"), and the undersigned (the "Pledgor").

                                    RECITALS

         A. Simultaneously herewith the Pledgor is purchasing shares of Common
Stock, par value $.01 per share, of El Paso Global Networks Company (the
"Shares"). The proceeds received by the Pledgor from the Parent pursuant to a
Recourse Secured Promissory Note (the "Recourse Note") shall be used as partial
consideration for the purchase of the Shares.

         B. As a condition to the purchase of the Shares, the Pledgor and the
Company have entered into a Subscription Agreement, dated as of the date hereof
(the "Subscription Agreement"), which sets forth certain rights and restrictions
pursuant to which the Pledgor holds the Shares.

         C. The Pledgor wishes to grant further security and assurance to the
Parent in order to secure all of the Pledgor's obligations under the Recourse
Note, including, without limitation, the prompt payment when due of the
principal of and interest on the Recourse Note (collectively, the
"Obligations"), by pledging to the Parent, simultaneously with the Pledgor's
delivery of the Recourse Note, the Shares.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

         1. Pledge. The Pledgor hereby delivers to the Parent the Shares and the
certificate evidencing the same (together with any securities to be delivered to
the Pledgor pursuant to Section 2(b) hereof, the "Pledged Securities"), and
hereby grants to the Parent a first priority security interest in the Pledged
Securities, and in any other property to be delivered to the Pledgor pursuant to
Section 2(b) hereof (collectively, the "Pledged Collateral") as collateral
security for the prompt and complete payment when due (whether at the stated
maturity, acceleration or otherwise) of the Obligations.

         The Pledgor hereby delivers to the Parent appropriate undated security
transfer powers duly executed in blank for the Shares and will deliver
appropriate undated security transfer powers duly executed in blank for any
additional Pledged Securities to be pledged hereunder from time to time
hereafter.

         The Pledgor shall immediately upon request by the Parent and in
confirmation of the security interests hereby created, execute and deliver to
the Parent such further instruments,

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in form and substance as the Parent shall request, required under Texas law or
any other applicable law, to protect the security interests created hereunder.

         2. Administration of Security. The following provisions shall govern
the administration of the Pledged Collateral:

            (a) So long as no Event of Default has occurred and is continuing
(as used herein, "Event of Default" shall mean the occurrence of any Event of
Default under the Recourse Note), the Pledgor shall be entitled to act with
respect to the Pledged Collateral in any manner not inconsistent with this Stock
Pledge Agreement, the Subscription Agreement or the Recourse Note.

            (b) If while this Stock Pledge Agreement is in effect, the Pledgor
shall become entitled to receive or shall receive any debt or equity security
certificate (including, without limitation, any certificate representing a stock
dividend or a distribution in connection with any reclassification, increase or
reduction of capital, or issued in connection with any reorganization), option
or right, or any other property, whether as a dividend or distribution or other
issuance in respect of, in substitution of, or in exchange for any Pledged
Securities, or any non-cash proceeds from any sale, transfer or other
disposition (collectively, a "Sale") of any Pledged Securities, the Pledgor
agrees to accept the same as the Parent's agent and to hold the same in trust on
behalf of and for the benefit of the Parent and to deliver the same forthwith to
the Parent in the exact form received, with the endorsement of the Pledgor when
necessary and/or appropriate undated security transfer powers duly executed in
blank, to be held by the Parent, subject to the terms of this Stock Pledge
Agreement, as additional collateral security for the Obligations.
Notwithstanding the foregoing, it is agreed that the Pledgor may exercise any
option or right received as contemplated in the preceding sentence, and the
Parent will exercise any such option or right upon receipt of written
instructions to that effect and any required payments or documents from the
Pledgor, and the securities received upon such exercise of any such option or
right shall thereafter be held by the Parent as contemplated by the preceding
sentence.

            (c) Subject to any Sale by the Parent of the Pledged Collateral
pursuant to this Stock Pledge Agreement and subject to the terms of the
Subscription Agreement, the Pledged Collateral shall be returned to the Pledgor
upon payment in full of all Obligations.

            (d) The Parent's sole duty with respect to the custody, safekeeping
and physical preservation of any of the Pledged Collateral in its possession
shall be to deal with them in the same manner as the Parent deals with similar
securities and property for its own account. Neither the Parent nor any of its
directors, officers, employees or agents shall be liable for failure to demand,
collect or realize upon any of the Pledged Collateral or for any delay in doing
so nor shall they be under any obligation to sell or otherwise dispose of any of
the Pledged Collateral upon the request of the Pledgor or otherwise.

         3. Remedies in Case of an Event of Default.

            (a) In case an Event of Default shall have occurred and be
continuing, the Parent shall have the right, in its sole discretion, to sell,
resell, assign and deliver, all or, from

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time to time, any part of the Pledged Collateral or any interest in or option or
right to purchase any part thereof, on any securities exchange on which the
Pledged Securities may be listed, at any private sale or at public auction, with
or without demand of performance or other demand, advertisement or notice of the
time or place of sale or adjournment thereof or otherwise (except that the
Parent shall give ten days' notice to the Pledgor of the time and place of any
sale pursuant to this Section 3), for cash, on credit or for other property, for
immediate or future delivery, and for such price or prices and on such terms as
the Parent shall, in its sole discretion, determine, the Pledgor hereby waiving
and releasing any and all right or equity of redemption whether before or after
sale hereunder. At any such sale, the Parent may bid for and purchase the whole
or any part of the Pledged Collateral so sold free from any such right or equity
of redemption. The Parent shall apply the proceeds of any sale first to the
payment of all costs and expenses, including reasonable attorneys' fees,
incurred by the Parent in enforcing its rights under this Stock Pledge
Agreement, and second to the payment of accrued and unpaid interest on and then
of unpaid principal of the Recourse Note. Notwithstanding the foregoing, (i)
Pledgor shall be personally liable for 25% of the entire unpaid principal amount
plus 100% of any accrued but unpaid interest owing as of the occurrence of such
Event of Default (the "Specified Amount"), (ii) Parent shall have all the
remedies of a secured party under the Texas Uniform Commercial Code to satisfy
the Specified Amount and (iii) nothing shall require Parent to exercise its
rights with respect to the Pledged Collateral prior to or simultaneously with
any exercise of its rights against Pledgor.

            (b) The Pledgor recognizes that the Parent may be unable to effect a
public sale of all or a part of any Pledged Securities constituting part of the
Pledged Collateral by reason of certain prohibitions contained in the Securities
Act of 1933 or in the rules and regulations promulgated thereunder or in
applicable state securities or "blue sky" laws, but may be compelled to resort
to one or more private sales to a restricted group of purchasers who will be
obliged to agree, among other things, to acquire the Pledged Securities for
their own account, for investment and not with a view to the distribution or
resale thereof. The Pledgor agrees that private sales so made may be at prices
and on other terms less favorable to the seller than if the Pledged Securities
were sold at public sale, and that the Parent has no obligation to delay the
sale of the Pledged Securities for the period of time necessary to permit the
registration of the Pledged Securities for public sale under the Securities Act
of 1933 and under applicable state securities or "blue sky" laws. The Pledgor
agrees that a private sale or sales made under the foregoing circumstances shall
be deemed to have been made in a commercially reasonable manner.

            (c) If any consent, approval or authorization of any state,
municipal or other governmental department, agency or authority should be
necessary to effectuate any sale or disposition by the Parent pursuant to this
Section 3 of the Pledged Collateral, the Pledgor will execute all such
applications and other instruments as may be required in connection with
securing any such consent, approval or authorization and will otherwise use the
Pledgor's best efforts to secure the same.

         4. Pledgor's Obligations Not Affected. The obligations of the Pledgor
under this Stock Pledge Agreement shall remain in full force and effect without
regard to, and shall not be impaired or affected by: (a) any subordination,
amendment or modification of or addition or supplement to the Subscription
Agreement, the Recourse Note, or any assignment or transfer of any thereof; (b)
any exercise or non-exercise by the Parent or any affiliate of the Parent of any

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right, remedy, power or privilege under or in respect of this Stock Pledge
Agreement, the Subscription Agreement, the Recourse Note, or any waiver of any
such right, remedy, power or privilege; (c) any waiver, consent, extension,
indulgence or other action or inaction in respect of this Stock Pledge
Agreement, the Subscription Agreement, the Recourse Note, or any assignment or
transfer of any thereof; or (d) any bankruptcy, insolvency, reorganization,
arrangement, readjustment, composition, liquidation or the like, of the Parent,
whether or not the Pledgor shall have notice of any of the foregoing.

         5. Transfers by Pledgor. The Pledgor will not sell, assign, transfer or
otherwise dispose of, grant any option with respect to, or mortgage, pledge or
otherwise encumber any of the Pledged Collateral or any interest therein, except
to the extent allowed or required by the Subscription Agreement.

         6. Attorney-in-Fact. The Parent is hereby appointed the
attorney-in-fact of the Pledgor for the purpose of carrying out the provisions
of this Stock Pledge Agreement and taking any action and executing any
instrument which the Parent reasonably may deem necessary or advisable to
accomplish the purposes hereof, which appointment as attorney-in-fact is
irrevocable as one coupled with an interest.

         7. Termination. Upon payment in full of all Obligations and upon the
due performance of and compliance with and subject to all the provisions of the
Subscription Agreement and the Recourse Note, this Stock Pledge Agreement shall
terminate and the Pledgor shall be entitled to the return of such of the Pledged
Collateral as has not theretofore been sold, released or otherwise applied
pursuant to the provisions of this Stock Pledge Agreement.

         8. Notices. All notices or other communications required or permitted
to be given hereunder shall be delivered as provided in the Subscription
Agreement.

         9. Binding Effect, Successors and Assigns. This Stock Pledge Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

         10. Miscellaneous. The Parent and its assigns shall have no obligation
in respect of the Pledged Collateral under this Stock Pledge Agreement, except
to hold and dispose of the same in accordance with the terms of this Stock
Pledge Agreement. Neither this Stock Pledge Agreement nor any provision hereof
may be amended, modified, waived, discharged or terminated orally, but only by
an instrument in writing signed by the party against which enforcement of the
amendment, modification, waiver, discharge or termination is sought. The
captions in this Stock Pledge Agreement are for convenience of reference only
and shall not define or limit the provisions hereof. This Stock Pledge Agreement
shall be governed by and construed and enforced in accordance with the laws of
the State of Texas, without regard to the conflicts of law rules thereof. The
provisions of Section 14(l) of the Subscription Agreement are incorporated by
reference herein.

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         IN WITNESS WHEREOF, the parties hereto have caused this Stock Pledge
Agreement to be executed and delivered on the date first above written.

                           EL PASO ENERGY CORPORATION

                           By:
                              --------------------------
                              Name:
                              Title:

                           PLEDGOR:

                           -----------------------------
                           Name:

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<PAGE>   6

                        RECOURSE SECURED PROMISSORY NOTE
                                ("RECOURSE NOTE")

$________                                                      February 1, 2001

         FOR VALUE RECEIVED, the undersigned (the "Stockholder") hereby promises
to pay to the order of El Paso Energy Corporation, a Delaware corporation (the
"Parent"), or to any assignee of this Recourse Note at the time of payment, on
the Maturity Date (as hereinafter defined), the principal sum of
[____________________ _____________________] ($________) in lawful money of the
United States of America, and to pay simple interest at a rate of 5.07% per
annum (the "Interest Rate") (computed on the basis of a 365 or 366 day year, as
the case may be) on the unpaid principal amount hereof from and after the date
of this Recourse Note until the entire principal amount hereof has been paid in
full. Accrued but unpaid interest shall be paid on December 31 of each year and
upon payment (including prepayment) of the principal amount hereof.

         This Recourse Note has been entered into to obtain a portion of the
funds necessary to finance the purchase by the Stockholder of shares of Common
Stock, par value $.01 per share (the "Common Stock"), of El Paso Global Networks
Company ("EPGN"). In connection with the Stockholder's purchase of shares of
Common Stock, EPGN and the Stockholder entered into a Subscription Agreement,
dated as of the date hereof, which sets forth certain rights and restrictions
pursuant to which the Stockholder holds such shares (the "Subscription
Agreement"). Payment of the principal of and interest on this Recourse Note is
secured pursuant to the terms of a Stock Pledge Agreement, dated as of the date
hereof, between the Stockholder and the Parent (the "Pledge Agreement"),
reference to which is made for a description of the collateral provided thereby
and the rights of the Parent and any other holder of this Recourse Note in
respect of such collateral. Under the terms of Section 3(a) of the Pledge
Agreement, the Stockholder is personally liable for 25% of the entire unpaid
principal amount plus 100% of any accrued but unpaid interest owing as of the
occurrence of an Event of Default.

         The "Maturity Date" shall mean the fifth anniversary of the date
hereof. If the date set for payment of principal or interest hereunder is a
Saturday, Sunday or legal holiday, then such payment shall be made on the next
succeeding business day.

         This Recourse Note is subject to the following further terms and
conditions:

         1. Mandatory Prepayment. If there shall be a Liquidation Event (as
hereinafter defined), the Stockholder shall prepay the outstanding principal
amount of this Recourse Note (together with interest accrued and unpaid
thereon), within 5 business days thereafter. "Liquidation Event" shall mean (i)
any transaction or series of transactions in which any Person

                                       -1-

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or group, other than an affiliate of Parent, becomes the beneficial owner of 50%
or more of the then outstanding capital stock of EPGN, (ii) the sale of all or
substantially all of the assets of EPGN, (iii) the liquidation of EPGN, (iv) the
combination of EPGN with another entity, as a result of which (A) the
stockholders of EPGN hold less than 50% of the total of all voting shares
outstanding or (B) the directors of Parent constitute less than a majority of
the Board of Directors of the combined entity or (v) the consummation of EPGN's
initial registered public offering pursuant to the Securities Act of 1933, as
amended.

         2. Payment and Prepayment. All payments and prepayments of principal
and interest on this Recourse Note shall be made to the Parent or its order (or
to any other holder of this Recourse Note or such holder's order), in lawful
money of the United States of America at the principal offices of the Parent (or
at such other place as the holder hereof shall notify the Stockholder in
writing). The Stockholder may, at the Stockholder's option, prepay this Recourse
Note in whole or in part at any time or from time to time without penalty or
premium. Any prepayments of any portion of the principal amount of this Recourse
Note shall be accompanied by payment of all interest accrued but unpaid on the
principal amount being prepaid.

         3. Events of Default. Upon the occurrence of any of the following
events ("Events of Default"):

                  (a) Failure to pay any principal of this Recourse Note when
         due; or

                  (b) Failure to pay any interest under this Recourse Note when
         due which shall remain unremedied for ten days following the date when
         such interest was due hereunder; or

                  (c) Failure to comply with any of the terms of the
         Subscription Agreement; or

                  (d) An involuntary case or other proceeding shall be commenced
         against the Stockholder seeking liquidation, reorganization or other
         relief with respect to it or its debts under any applicable Federal,
         State or non-United States bankruptcy, insolvency, reorganization or
         similar law now or hereafter in effect or seeking the appointment of a
         custodian, receiver, liquidator, assignee, trustee, sequestrator or
         similar official of it or any substantial part of its property, and
         such involuntary case or other proceeding shall remain undismissed and
         unstayed, or an order or decree approving or ordering any of the
         foregoing shall be entered and continued unstayed and in effect, in any
         such event, for a period of 60 days; or

                  (e) The commencement by the Stockholder of a voluntary case or
         proceeding under any applicable Federal, State or non-United States
         bankruptcy, insolvency, reorganization or other similar law or of any
         other case or proceeding to be adjudicated a bankrupt or insolvent, or
         the consent by it to the entry of a decree or order for relief in
         respect of the Stockholder in an involuntary case or

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         proceeding under any applicable Federal, State or non-United States
         bankruptcy, insolvency, reorganization or other similar law or to the
         commencement of any bankruptcy or insolvency case or proceeding against
         it, or the filing by it of a petition or answer or consent seeking
         reorganization or relief under any applicable Federal, State or
         non-United States law, or the consent by it to the filing of such
         petition or to the appointment of or taking possession by a custodian,
         receiver, liquidator, assignee, trustee, sequestrator or similar
         official of the Stockholder or any substantial part of its property, or
         the making by it of an assignment for the benefit of creditors, or the
         admission by it in writing of inability to pay its debts generally as
         they become due, or the taking of corporate action by the Stockholder
         in furtherance of any such action,

then, and in any such event, the holder of this Recourse Note may declare, by
notice of default given to the Stockholder, the entire principal amount of this
Recourse Note to be forthwith due and payable, whereupon the entire principal
amount of this Recourse Note outstanding and any accrued and unpaid interest
hereunder shall become due and payable without presentment, demand, protest,
notice of dishonor and all other demands and notices of any kind, all of which
are hereby expressly waived. Upon the occurrence of an Event of Default, the
accrued and unpaid interest hereunder shall thereafter bear the same rate of
interest as on the principal hereunder, but in no event shall such interest be
charged which would violate any applicable usury law. If an Event of Default
shall occur hereunder, the Stockholder shall pay costs of collection, including
reasonable attorneys' fees, incurred by the holder in the enforcement hereof.

         No delay or failure by the holder of this Recourse Note in the exercise
of any right or remedy shall constitute a waiver thereof, and no single or
partial exercise by the holder hereof of any right or remedy shall preclude
other or future exercise thereof or the exercise of any other right or remedy.

         4.       Miscellaneous.

                  (a) The provisions of this Recourse Note shall be governed by
         and construed in accordance with the laws of the State of Texas,
         without regard to the conflicts of law rules thereof. The provisions of
         Section 14(l) of the Subscription Agreement are incorporated by
         reference herein.

                  (b) All notices and other communications hereunder shall be in
         writing and will be deemed to have been duly given if delivered or
         mailed in accordance with the Subscription Agreement.

                  (c) All of Parent's rights and obligations under this Recourse
         Note may be assigned by Parent at any time to an affiliate of Parent.
         Stockholder may not assign any of its rights or obligations under this
         Recourse Note.

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                  (d) The headings contained in this Recourse Note are for
         reference purposes only and shall not affect in any way the meaning or
         interpretation of the provisions hereof.

         IN WITNESS WHEREOF, this Recourse Note has been duly executed and
delivered by the Stockholder on the date first above written.

                                                -------------------------------
                                    Stockholder:

                                       -4-
<PAGE>   10
                    LISTING OF SELECT EXECUTIVE PARTICIPANTS

<TABLE>
<CAPTION>

PARTICIPANT            NUMBER OF SHARES      LOAN AMOUNT
-----------------      ----------------      -----------
<S>                    <C>                   <C>
Austin, H. Brent            200,000          $  400,000
Eads, Ralph                 600,000          $1,200,000
Somerhalder, John           400,000          $  800,000
Wise, William A           2,000,000          $4,000,000
</TABLE>

                                       -1-<PAGE>   1

                                                                    EXHIBIT 10.Z

                         PROFESSIONAL SERVICES AGREEMENT

         This Agreement is entered into this 16th day of January, 2001, by and
between David A. Arledge, an individual of Houston, Texas (hereinafter
"Contractor") and EL PASO ENERGY CORPORATION, a Delaware corporation
(hereinafter "El Paso" or "Company") (collectively, the "Parties" and
individually, a "Party").

         WHEREAS, El Paso, El Paso Merger Company, a Delaware corporation and a
wholly owned subsidiary of El Paso, and The Coastal Corporation, a Delaware
corporation (hereinafter "Coastal"), have entered into an Agreement and Plan of
Merger dated as of January 17, 2000 (hereinafter "Merger Agreement"), pursuant
to which El Paso Merger Company and Coastal will merge effective on the Closing
Date (as defined in the Merger Agreement) (hereinafter "Closing Date"); and

         WHEREAS, Contractor is currently an employee and serves as an officer
of Coastal pursuant to an employment agreement dated as of April 1, 1999, by and
between Contractor and Coastal, with such employment agreement to terminate on
the Closing Date; and

         WHEREAS, Contractor agrees to resign any and all officer and director
positions with Coastal and each of its affiliates (except that Contractor shall
continue as a member and Vice Chairman of the Board of Directors of El Paso
Energy Corporation), effective on the Closing Date; and

         WHEREAS, El Paso desires for Contractor to perform certain work and
services for El Paso subsequent to the Closing Date as an independent contractor
of El Paso.

         NOW, THEREFORE, for and in consideration of the sums to be paid
hereunder, the mutual covenants and promises to be kept, observed and performed,
and other good and valuable considerations, the receipt and sufficiency of which
are hereby acknowledged and confessed, Contractor and El Paso do hereby agree as
follows:

                                       1
<PAGE>   2

1.       STATUS OF CONTRACTOR.

         Effective on the Closing Date, Contractor's status as an employee of
Coastal will end. The Parties intend that Contractor shall perform work and
services for El Paso in the capacity of an independent contractor effective on
the Closing Date, in accordance with Articles 2 through 5 below.

2.       SERVICES.

         A. The provisions of this Article 2 shall pertain to the engagement by
El Paso of Contractor as an independent contractor in accordance with the terms
set out below and shall commence on the first date written above or the Closing
Date, as applicable, and will expire on July 31, 2001 unless such Term shall
otherwise be extended by mutual consent of the Parties, for an additional
period. The Company or Contractor in their sole discretion may terminate this
Agreement at any time with thirty (30) days prior written notice.

         B. Contractor hereby agrees to devote his expertise, capabilities, and
talent to the duties described herein and to perform his services in a good and
diligent manner reasonably calculated to achieve the objectives of this
engagement.

         C. With respect to Contractor's duties hereunder, William A. Wise
(Wise) shall be the Company's representative with regard to work performed by
Contractor hereunder.

         D. Contractor's duties shall include consulting work on projects as
from time to time designated by Wise and agreed to by Contractor. Examples of
possible projects are indicated on Attachment A.

         E. Contractor shall be provided such office space and equipment and
secretarial services during the term of the Agreement as is reasonably required
by Contractor. Such office space shall be located at 9 Greenway Plaza, Houston,
Texas and to the extent reasonably possible be the space currently occupied by
Contractor.

                                       2
<PAGE>   3

         F. Upon execution of this Agreement, Company agrees to pay Contractor
the sum of $1,066,000 as full settlement of the obligation to provide office
space and staff for former Chairman of The Coastal Corporation as provided in
Article 6.6 of Contractor's Employment Agreement with Coastal dated April 1,
1999 and The Coastal Corporation Board of Directors' minutes dated March 19,
1998, (Attachment B). The term of service pursuant to this Agreement shall not
reduce the obligations defined in Article 6.6 of Contractor's Employment
Agreement and approved by The Coastal Board of Directors. Payment is to be made
within ten (10) days from the date of this Agreement by check mailed to
Contractor at the address indicated on page 8 of this Agreement.

         G. It is expressly agreed that Contractor shall act as an independent
contractor and shall have no authority to act for or on behalf of the Company or
to bind the Company to any contract or in any other manner (except in
Contractor's position as a member of the Board of Directors of El Paso Energy
Corporation) without the prior express written consent of the Company. Nothing
herein contained shall be construed to create a partnership, joint venture or
association of any kind, nor shall Contractor be considered an employee of the
Company. Any use by Contractor of the Company's established internal forms and
the application to Contractor of the Company's personnel or other policies is
understood to be merely for the mutual convenience of the Company and Contractor
should not be construed to create, or tend to create, or to evidence, or to tend
to evidence, an employer-employee relationship. Contractor agrees to assume full
responsibility for payment of all contributions and taxes required under federal
or state social security, self-employment, workers' compensation, unemployment
compensation, and income tax laws, arising from the performance of services
under this Agreement, and for payment of any and all valid sales or use taxes
levied on supplies and materials furnished and services performed by Contractor
hereunder.

                                       3
<PAGE>   4

         H. In consideration of the payments to be made to Contractor hereunder,
Contractor does agree to keep confidential any information, data, writings,
calculations, agreements or knowledge concerning the business, operating records
and operating secrets of the Company and its affiliates, which he has or might
from time to time acquire, and Contractor agrees to not disclose such
confidential information to any person not an employee of the Company or an
affiliate, except as expressly authorized in writing by the Company. In
addition, Contractor acknowledges that all books, records, lists, printouts,
calculations, files, maps, drawings and similar data used by him or generated by
him during the performance of this Agreement, are the property of the Company,
and shall, upon termination of this Agreement for whatever reason, remain the
property of the Company, and Contractor covenants that the same shall not be
removed or copied in whole or in part by Contractor at any time except for use
by Company and its affiliates including the Company's attorneys, nor be used in
any way for the benefit of any person or business entity save and except the
Company and its affiliates. All of such documents shall, upon termination of the
Agreement, be returned immediately to the possession of the Company.

         I. During the entire period that this Agreement is effective, the
Contractor shall not engage either directly or indirectly in any activity or
business, whether as an officer, director, sole proprietor, employee, partner,
majority shareholder, consultant or advisor, which is in direct competition with
any business engaged in by the Company or any subsidiary or affiliate of the
Company, except as otherwise expressly agreed by the Company, which agreement
will not be unreasonably withheld.

         J. The Company reposes confidence in the personal qualities and ability
of Contractor and it is accordingly understood that this Agreement is personal
in nature and may not be assigned by Contractor.

                                       4
<PAGE>   5

         K. The Company shall have no responsibility for or with respect to
Contractor except as specifically provided herein.

         L. Subject to Paragraph J, above, this Agreement shall extend to, and
be binding upon the parties hereto and their respective heirs, successors and
assigns.

         M. This Agreement shall be subject to all applicable laws, rules and
regulations, both Federal and State.

         N. No modification or alteration of the terms of this Agreement shall
be effective unless in writing, and signed by Contractor and an authorized
representative of the Company.

         O. This Agreement shall be governed by and construed in accordance with
the laws of the State of Texas.

3.       SERVICES - MONTHLY PAYMENTS.

         A. As consideration for the services to be performed by Contractor
hereunder, the Company agrees to make payment, and Contractor agrees to accept
compensation and reimbursement of expenses on the following basis:

                  1. Contractor shall be paid $70,000 per month, within ten (10)
days following the month in which the services are rendered. Payment is to be by
check and mailed to Contractor at the address indicated on page 8 of this
Agreement. As further consideration, the Company will permanently transfer the
Contractor's prior corporate memberships in the Houston City Club and the
Sweetwater Country Club to Contractor at no cost, if any, to him. Contractor
shall thereafter pay the monthly dues. In addition, the Company shall transfer
to Contractor his current Coastal assigned vehicle (a 1996 Buick Park Avenue,
with vehicle identification number 1G4CW52K4TH627387) as soon as practical after
the Closing Date.

                                       5
<PAGE>   6

                  2. Contractor shall perform his duties and services as
required under this Agreement during the Company's normal business hours and
shall perform such services, or be available to perform such services, as from
time to time agreed by Wise and Contractor.

                  3. Payment shall be made for reasonable expenses incurred in
the performance of services hereunder, as provided in Article 3, paragraph B,
below.

                  4. Contractor shall have the use of Company property and
vehicles (including aircraft) in accordance with corporate policy relating to
employee utilization.

         B. Within ten (10) days after the end of each calendar month hereunder,
beginning in February 2001, Contractor shall submit a monthly invoice (in the
form of an expense account) indicating the business expenses properly incurred
during such month in performing this Agreement, including transportation
expenses and other chargeable items such as hotel bills and meals. Said invoice
will be sent to El Paso Energy Corporation, to the attention of Wise. The
Company shall pay Contractor not later than twenty (20) days after its receipt
and verification of each such invoice.

4.       CODE OF CONDUCT.

         Contractor further agrees to remain in compliance with his
responsibilities and obligations as set forth in the Company's Code of Conduct
(with the exception of any specific applications of the Code of Conduct that
only pertain to employees).

5.       ARBITRATION.

         The Parties agree that all questions as to rights and obligations
arising out of the terms of this Agreement are subject to arbitration and such
arbitration shall be governed by the provisions of the Texas General Arbitration
Act (Texas Civil Practice and Remedies Code, Section 171.001, et seq.). If a
dispute should arise under this Agreement, either Party within ten (10) days
after

                                       6
<PAGE>   7

the date on which the dispute arises may make a demand for arbitration by filing
a demand in writing with the other Party.

         The Parties to this Agreement may agree on one arbitrator, but in the
event they cannot so agree, there shall be three arbitrators, one named in
writing by each of the Parties within ten (10) days after demand for arbitration
is made, and a third arbitrator to be chosen by the two arbitrators named.
Should either Party fail to timely join in the appointment of the arbitrators,
the arbitrators shall be appointed in accordance with the provisions of the
Texas Civil Practice and Remedies Code Section 171.003.

         All arbitration proceedings conducted under the terms of this Agreement
and all judicial proceedings to enforce any of the provisions of this Agreement
shall take place in Houston, Texas. The hearing before the arbitrators of the
matter to be arbitrated shall be at the time and place within Houston, Texas
selected by the arbitrators. Notice of the hearing shall be given and the
hearing conducted in accordance with the provisions of Sections 171.005, 171.006
and 171.007 of the Texas Civil Practice and Remedies Code. At the hearing, any
relevant evidence may be presented by either Party, and the formal rules of
evidence applicable to judicial proceedings shall not govern. Evidence may be
admitted or excluded in the sole discretion of the arbitrators. The arbitrators
shall hear and determine the matter and shall execute and acknowledge their
award in writing and deliver a copy thereof to each of the Parties by registered
or certified mail.

         If there is only one arbitrator, his or her decision shall be binding
and conclusive on the Parties. If there are three arbitrators, the decision of
any two shall be binding and conclusive. The submission of a dispute to the
arbitrators and the rendering of their decision shall be a condition precedent
to any right of legal action on the dispute. A judgment confirming the award of
the arbitrators may be rendered by any court having jurisdiction; or such court
may vacate,

                                       7
<PAGE>   8

modify, or correct the award in accordance with the provisions of the Texas
General Arbitration Act (Texas Civil Practice and Remedies Code Sections
171.013, 171.014 and 171.015).

         If the arbitrators selected pursuant to this Article 5 shall fail to
render a decision within seven (7) days of the date of the hearing, they shall
be discharged, and three new arbitrators shall be appointed and shall proceed in
the same manner and the process shall be repeated until a decision is reached by
at least two of the three arbitrators selected.

6.       EFFECTIVE DATE.

         This Agreement shall become effective as of the Closing Date.

7.       NOTICES.

         Except as otherwise provided, all notices, requests, demands and other
communications permitted or required hereunder shall be in writing and shall be
deemed to have been duly given if delivered or if mailed, by registered or
certified United States mail, postage prepaid, as follows:

         A. If to Contractor, addressed to: David A. Arledge
                                            1932 Norfolk
                                            Houston, TX  77098

         B. If to El Paso, addressed to:    El Paso Energy Corporation
                                            1001 Louisiana Street
                                            Houston, Texas  77001
                                            Attention:  Joel  Richards  III
                                            Its Executive Vice President,
                                            Administration

or to such other address as either Party hereto may request by giving notice as
provided in this paragraph.

                                       8
<PAGE>   9

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

                                               EL PASO ENERGY CORPORATION

                                               By /s/ William A. Wise
                                                  ------------------------------
                                                      William A. Wise
                                                   Chairman, President and
                                                   Chief Executive Officer

                                                  /s/ David A. Arledge
                                                  ------------------------------
                                                      David A. Arledge

                                       9

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