Document:

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EXHIBIT 10.1

                  2000 CONSULTATION SERVICES COMPENSATION PLAN
                            PROVIDENCE CAPITAL II, INC.

1.       PURPOSE OF THE PLAN.

    This Consultation Services Compensation Plan is intended to further the
growth and advance the best interest of PROVIDENCE CAPITAL II, Inc., a Colorado
corporation (the "Company"), by supporting and increasing the Company's
ability to attract, retain and compensate persons of experience and ability and
whose services are considered valuable, to encourage the sense of
proprietorship in such persons, and to stimulate the active interest of such
persons in the development and success of the Company.  This Plan provides for
stock compensation through the award of the Company's Common Stock, as a bonus
or in lieu of cash compensation for services rendered.

2.       DEFINITIONS.

     Whenever used in this Plan, except where the context might clearly
indicate otherwise, the following terms shall have the meanings set forth in
this section:

         a.       "Act" means the U.S. Securities Act of 1933, as amended.

         b.       "Affiliated Corporation" means any Parent or Subsidiary.

         c.       "Award" means any grant of Common Stock made under this Plan,
                   as a bonus, or in lieu of cash compensation for
                   services rendered.

         d.       "Board of Directors" means the Board of Directors of the
                   Company.

         e.       "Code" means the Internal Revenue Code of 1986, as amended.

         f.       "Common Stock" or "Common Shares" means the common stock,
                   no par value per share, of the Company, or in the event
                   that the outstanding Common Shares are hereafter changed
                   into or exchanged for different shares of securities of
                   the Company, such other shares or securities.

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         g.       "Date of Grant" means the day the Board of Directors
                   authorizes the grant of an Award or such later date as may
                   be specified by the Board of Directors as the date a
                   particular Award will become effective.

         h.       "Employee/Consultant" means any person or entity that
                   renders bona fide services to the Company, including,
                   without limitation, (i) a person employed by the Company
                   in any capacity; (ii) an officer or director of the
                   Company; or (iii) a person engaged by the Company as a
                   consultant or advisor.

         i.       "Participant" means an Employee or Consultant to whom an
                   Award of Plan Shares has been made.

         j.       "Plan Shares" means shares of Common Stock from time to time
                   subject to this Plan.

3.       EFFECTIVE DATE OF THE PLAN.

     The effective date of this Plan is November 24, 1999. No Plan Shares may
be issued after December 31, 2000.

4.       ADMINISTRATION OF THE PLAN.

     The Board of Directors will be responsible for the administration of
this Plan, and will negotiate compensation under this Plan.  Subject to the
express provisions of this Plan, the Board of Directors shall have full
authority and sole and absolute discretion to interpret this Plan, to prescribe,
amend and rescind rules and regulations relating to it, and to make all other
determinations which it believes to be necessary or advisable in administering
this Plan. The determination of those eligible to receive Plan Shares shall rest
in the sole discretion of the Board of Directors, subject to the provisions of
this Plan. The Board of Directors may correct any defect, supply any omission or
reconcile any inconsistency in this Plan in such manner and to such extent it
shall deem necessary to carry it into effect.  Any decision made, or action
taken, by the Board of Directors arising out of or in connection with the
interpretation and administration of the Plan shall be final and conclusive.
The Board of Directors may appoint a compensation committee from among the
members of the full Board of Directors to administer this Plan.

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5.       STOCK SUBJECT TO THE PLAN.

     The maximum number of Plan Shares as to which Awards may be granted
under this Plan is 2,105,200 shares.

6.       PERSONS ELIGIBLE TO RECEIVE AWARDS.

     Awards may be granted only to Employees or Consultants

7.       GRANTS OF AWARDS.

     Except as otherwise provided herein, the Board of Directors shall
have complete discretion to determine when and to which Employees Awards
are to be granted, and the number of Plan Shares to be Awarded to each
Employee/Consultant.  No grant will be made if, in the judgment of the Board
of Directors, such a grant would constitute a public distribution with the
meaning of the Act or the rules and regulations promulgated thereunder.

8.       DELIVERY OF STOCK CERTIFICATES.

     As promptly as practicable after authorizing the grant of an Award,
the Company shall deliver to the person who is the recipient of the award, a
certificate or certificates registered in that person's name, representing
the number of Plan Shares that were granted.  Unless the Plan Shares have been
registered under the Act, each certificate evidencing Plan Shares shall bear a
legend to indicate that such shares represented by the certificate were issued
in a transaction which was not registered under the Act, and may only be sold
or transferred in a transaction that is registered under the Act or is exempt
from the registration requirements of the Act.

9.       ASSIGNABILITY.

     No Award of Plan Shares may be assigned.  Plan Shares may be assigned
after such shares have been delivered, only in accordance with law and any
transfer restrictions imposed at the time of Award.

10.      EMPLOYMENT.

     Nothing in this Plan or in the grant of an Award shall confer upon
any Employee/Consultant the right to continue in the employ of the Company nor
shall it interfere with or restrict in any way the lawful rights of the
Company to discharge any Employee/Consultant at any time for any reason
whatsoever, with or without cause.

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11.      LAWS AND REGULATIONS.

     The obligation of the Company to sell and deliver Plan Shares on the
grant of an Award under this Plan shall be subject to the condition that the
Company be satisfied that the sale and delivery thereof will not violate the
Act or any other applicable laws, rules or regulations.

12.      WITHHOLDING OF TAXES.

     If subject to withholding tax, the Company may require that the Employee
concurrently pay to the Company the entire amount or a portion of any taxes
which the Company is required to withhold by reason of granting an Award, in
such amount as the Company in its discretion may determine.  In lieu of part
or all of any such payment, the Employee may elect to have the Company withhold
from the Plan Shares issued hereunder a sufficient  number of shares to satisfy
withholding obligations.  If the Company becomes required to pay withholding
taxes to any federal, state or other taxing authority as a result of the
granting of an Award, and the Employee fails to provide the Company with the
funds with which to pay that withholding tax, the Company may withhold up to
50% of each payment of salary or bonus to the Employee (which will be in
addition to any required or permitted  withholding),  until the Company has
been reimbursed for the entire withholding tax it was required to pay in
respect of issuance of any Plan Shares.

     If shares pursuant to the plan are issued to a consultant, not a regular
employee under the Internal Revenue Code, such shares shall not be delivered
until a W-2 is received and a Form 1099 shall be issued with delivery
of the shares.

13.      RESERVATION OF SHARES.

     The stock subject to this Plan shall, at all times, consist of authorized
but unissued shares of Common Stock reacquired or held by the Company equal
to the maximum number of shares the Company may be required to issue on the
grant of Awards under this Plan, and such number of Common Shares hereby is
reserved for such purpose.  The Board of Directors may decrease the number of
shares subject to this Plan, but not increase such number, except as a
consequence of a stock split or other reorganization or recapitalization
affecting all Common Shares.

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14.      AMENDMENT AND TERMINATION OF THE PLAN.

     The Board of Directors may suspend or terminate this Plan at any time
or from time to time, but no such action shall adversely affect the rights of
a person granted an Award under this Plan prior to that date. Otherwise, this
Plan shall terminate on the earlier of the terminal date stated in Section 3 of
this Plan or the date when all Plan Shares have been issued.  The Board of
Directors shall have absolute  discretion to amend this Plan, subject to any
limitations expressly set forth herein.

15.      DELIVERY OF PLAN.

     A copy of this Plan shall be delivered to all participants, together with
a copy of the resolution or resolutions of the Board of Directors authorizing
the granting of the Award and establishing the terms, if any of participation,
prior to an Award of Plan Shares.

16.      LIABILITY.

     No member of the Board of Directors, any committee of directors, or
officers, employees or agents of the Company shall be personally liable for
any action, omission or determination made in good faith in connection with this
Plan.

17.      MISCELLANEOUS PROVISIONS.

     The place of administration of the Plan shall be in the State of Colorado,
and the validity, construction, interpretation and effect of this Plan and of
its rules, regulations and rights relating to it, shall be determined solely in
accordance with the laws of such state.

     Without amending this Plan, the Board of Directors may issue Plan Shares
to employees of the Company who are foreign nationals or employed outside
the United States, or both, on such terms and conditions different form those
specified in this Plan but consistent with the purpose of this Plan, as it deems
necessary and desirable to create equitable opportunities given differences in
tax laws in other countries.

     All expenses of administering this Plan and issuing Plan Shares shall
be borne by the Company.

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     By signature below, the undersigned officers of the Company hereby
certify that the foregoing is a true and correct copy of the 2000 Consultation
Services Compensation Plan of the Company.

Dated: May 25, 2000

PROVIDENCE CAPITAL II, INC.

/s/ Mark T. Thatcher

By:--------------------
   MARK T. THATCHER,
   SecretaryExhibit 4.1

                             THE COASTAL CORPORATION
                    DEFERRED COMPENSATION PLAN FOR DIRECTORS
                 Amended and Restated Effective January 1, 1998

     i.        Participants.  Any member of the Board of Directors ("Director")
           of The Coastal Corporation ("Company") is eligible to participate
           under this plan ("Plan") and may elect to become a participant
          ("Participant") under the Plan by filing a written notice ("Notice")
          with the Secretary of the Company.

     ii.       Deferred Compensation.  Any Participant may elect to defer the
          receipt of a portion of the Director's cash compensation otherwise
          payable to him by the Company, which portion shall be designated by
          the Participant as a percentage of the Director's cash compensation
          otherwise payable to such Participant. Such election shall be made
          prior to the time any amount subject to the deferral election is
          earned. The election is irrevocable for that period, but a different
          election may be made with respect to different periods of deferred
          compensation, provided such elections are made in advance of earning
          any portion of the cash compensation subject to the election. A
          change of election shall be effective only on the first day of
          January of a year and shall be made prior to the effective date. An
          exception to the effective date for an election shall apply when an
          individual first becomes a Director during the year or when the terms
          of the Plan are substantially modified. Pursuant to these exceptions,
          a Director may make an election within 30 days of becoming eligible
          to participate, or within 30 days of substantial modification of the
          Plan, which election may be effective prior to the end of that
          calendar year, but in no event shall the election apply to any
          amounts which have previously been earned.

     Director's compensation deferred pursuant to this Section shall be recorded
by the Company in deferred compensation accounts ("Accounts") maintained in the
name of and selected by the Participant, which Accounts shall be credited on
each date of payment of Director's compensation, in accordance with the
Company's normal practices, with (a) a dollar amount equal to the percentage of
the amount otherwise payable as designated by the Participant or (b) shares of
Phantom Stock if designated by the Participant as provided herein. The Company
shall furnish each Participant with a quarterly statement of his Accounts. The
Company shall also credit interest to Account #1 from the date of credit until
final distribution of the Account. The percentage of director's compensation
that a Participant elects to defer under this Section will remain constant until
suspended or modified by the filing of another election with the Company by a
Participant as provided herein.

     iii.    (a) Account #1 -- Deferred Amount and Interest. The amounts
          credited by the Company to Account #1 at the election of a
          Participant shall be credited with interest at an annual rate to be
          determined by the Company each year. Such interest rate shall be
          based on debt obligations issued by the U.S. Treasury with a ten year
          maturity plus an upward adjustment to approximate the difference
          between such rate and the average cost of borrowed capital of
          comparable maturity for the Company, and shall be credited until
          Account #1 has been fully distributed to the Participant or to the
          beneficiary or beneficiaries designated by the Participant in a
          writing delivered to the Company.

     (b) Account #2 -- Phantom Stock. The amount credited by the Company to
Account #2 at the election of a Participant shall be converted each pay period
to that number of shares of Phantom Stock equal to the number of shares (to the
nearest hundredth of a share) of Stock which could have been purchased with this
amount at the Fair Market Value of the Stock on the date the cash would have
been paid to the Participant if not subject to deferral under this Plan.

     During any period that the Company maintains Account #2 for a Participant,
on each date on which the Company pays dividends on shares of its Stock, Account
#2 of a Participant shall be credited with an additional number of shares of
Phantom Stock equal to the number of shares (to the nearest hundredth of a
share) of Stock which could have been purchased at the Fair Market Value for
shares of Stock on such dividend payment date, with the amount of dividends that
would have been received on the number of shares of Stock equal to the number of
shares of Phantom Stock in such Participant's Account #2, as of the end of the
month preceding the dividend record date. In the event of any stock

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                                                                     Exhibit 4.1

dividend, stock split, combination of shares, recapitalization or the like of
the Stock of the Company, appropriate adjustment shall be made in the number of
shares of Phantom Stock credited to the Participant's Account #2.

     The Participant may not receive any amount from Account #2 any sooner than
the date which would be required to comply with the rules and regulations of the
Securities and Exchange Commission prohibiting short-swing transactions.

     Stock Options. As an incentive for a Participant to defer amounts into
Account #2, thereby further aligning his interests with those of the Company's
Shareholders, the Company shall grant to Participant an Option to purchase
shares of Stock of the Company equal in number (whole number of shares only,
with any fractional share carried over to the next pay period) to the number of
shares credited each pay period to the Participant's Account #2 pursuant to this
deferral. The Option exercise price shall be equal to the Fair Market Value
price used to convert the amount deferred by the Participant into shares of
Phantom Stock. Each Option shall be reflected in an Option Agreement, shall vest
on a cumulative basis as to one-third of such shares on each of the first three
anniversaries of the date of grant, and shall expire at the earliest of the end
of (i) the five-year period commencing with the date of grant, (ii) the
three-year period commencing with the Director's retirement from the Board or
termination of Board membership, or (iii) the one-year period commencing with
the date of death of the Director. The terms of the Option Agreement shall be
substantially in the form attached hereto as Exhibit A, and shall be subject to
such restrictions as required by law.

     iv.   Distribution. A Participant may elect a method of distribution
           in the same manner as the Participant elects to participate in
           the Plan. Such election shall be made prior to the time any
           amount subject to the distribution election is earned. The
           election is irrevocable. A different election may be made with
           respect to different periods of deferred compensation provided
           such elections are made in advance of earning any portion of
           the compensation subject to the election. Such distribution may
           not begin until the Participant terminates service as a
           Director for any reason, including death.

     Interest on the deferred amounts shall be prorated by any method selected
by the Company to portions of Account #1 of the Participant which are subject to
different distribution directions of the Participant and/or the distribution
method selected by the Company, if applicable.

     With respect to all or any portion of the Accounts of a Participant with
respect to which the Participant has not submitted a valid distribution
election, the Company shall determine the method of distribution as described in
the following provisions.

                (i)  Upon termination as a Director of the Company for any
                     reason other than death, the Participant will be entitled
                     to receive all amounts credited to the Participant's
                     Accounts as of the date of termination of service.
                     Subject to the provisions of subsection (a), the Company
                     shall determine whether the Participant will receive
                     distribution of all amounts payable to him under this
                     paragraph (b) in a lump sum or in installments over a
                     designated period of years, pursuant to the provisions of
                     paragraph (e) of this Section.

                (ii) Upon termination of a Participant's service as a Director
                     of the Company by reason of his death, the Participant's
                     designated beneficiary or beneficiaries will be entitled
                     to receive all amounts credited to the Accounts of the
                     Participant as of the date of his death. Subject to the
                     provisions of subsection (a), such amounts shall be
                     payable in a lump sum or in installments over a designated
                     period of years, pursuant to the provisions of paragraph
                     (e) of this Section.

               (iii) Subject to the provisions of subsection (a), upon the
                     death of the Participant prior to complete distribution to
                     him of the entire balance of his Accounts (and after the
                     date of termination of his service as a Director of the
                     Company), the balance of his

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                                                                     Exhibit 4.1

                      Accounts on the date of his death shall be payable to the
                      Participant's designated beneficiary or beneficiaries
                      pursuant to paragraph (e) of this Section.

                 (iv) Subject to the provisions of subsection (a), the Company,
                      in its discretion, shall direct distribution of the
                      amounts credited to a Participant's Accounts, including
                      interest credited thereon, to a Participant or his
                      beneficiary or beneficiaries pursuant to the preceding
                      paragraphs of this Section, in a lump sum, or in
                      installments over such period of years as the Company
                      shall determine.  Distribution shall be made or commence
                      on the first day of the month next following (i) the
                      date upon which the Participant's service as a Director
                      of the Company terminates in the event of a distribution
                      pursuant to paragraphs (b) or (c) of this Section, or
                      (ii) the date of the Participant's death in the event of a
                      distribution pursuant to paragraph (d) of this Section.
                      Subsequent installments, if any, shall be made on the
                      annual, quarterly, or monthly anniversary dates of the
                      date of the first installment as determined by the
                      Company. Each such installment, if any, shall include
                      interest credited to the balance of Account #1.

     v.   Election to Defer. The Notice and Election by which a Participant
          elects to defer Director's fees as provided in this Plan shall be
          in writing, signed by the Participant, and delivered to the Company
          prior to the time any cash compensation to be deferred is earned by
          the Director and prior to the time any such cash compensation to be
          deferred is otherwise payable to the Participant. Such election (and
          any subsequent election) will continue until suspended or modified in
          a writing delivered by the Participant to the Company, which new
          election shall only apply to Director's fees otherwise earned and
          payable to the Participant after the end of the calendar year in
          which such election is delivered to the Company (unless an exception
          provided in Section 2 is applicable). Any deferral election made by
          the Participant shall be irrevocable with respect to any Director's
          compensation covered by such election, including the Director's
          compensation payable in the calendar year in which the election
          suspending or modifying the prior election is delivered to the
          Company. The election to defer shall be made on a Notice and Election
          form substantially in the form attached hereto as Exhibit B.

     vi.  Participant's Rights Unsecured. The right of the Participant or his
          designated beneficiary to receive a distribution hereunder shall be
          an unsecured claim against the general assets of the Company, and
          neither the Participant nor his designated beneficiary shall have any
          rights in or against any amount credited to his Accounts or any other
          specific assets of the Company. All amounts credited to any Account
          shall constitute general assets of the Company and may be disposed of
          by the Company at such time and for such purposes as it may deem
          appropriate. Accounts may not be encumbered or assigned by a
          Participant or any beneficiary. A Participant shall have no rights as
          a stockholder with respect to shares of Phantom Stock credited to
          Account #2 nor by virtue of any unexercised stock option granted
          pursuant to Section 3(b) of the Plan.

     vii. Amendments to the Plan. The Board may amend the Plan at any time,
          without the consent of the Participants or their beneficiaries,
          provided, however, that no amendment shall divest any Participant
          or beneficiary of the credits to his Accounts, or of any rights to
          which he would have been entitled if the Plan had been terminated
          immediately prior to the effective date of such amendment.

    viii. Termination of the Plan. The Board may terminate the Plan at any
          time. Upon termination of the Plan, distribution of the credits to a
          Participant's Accounts shall be made in the manner and at the time
          heretofore prescribed; provided that no additional credits shall be
          made to the Accounts of a Participant following termination of the
          Plan other than interest credited to Account #1 pursuant to Plan
          provisions and adjustments to the number of shares of Phantom Stock
          in Account #2 required by Section 3(b) of the Plan.

     ix.  Expenses. Costs of administration of the Plan will be paid by the
          Company.

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                                                                     Exhibit 4.1

     x.   Notices. Any notices or election required or permitted to be given
          hereunder shall be in writing ------- and shall be deemed to be filed
          (a) on the date it is personally delivered to the Secretary of the
          Company or (b) three business days after it is sent by registered or
          certified mail, addressed to such Secretary at the principal office
          of the Company.

     xi.  Governing Law. This Plan shall be construed, administered, and
          governed in all respect by the laws of the State of Texas.

      xii. Definitions. The following terms used herein shall have the meaning
           described below:

     "Fair Market Value" of the Stock as of any date means the average of the
high and low sales prices of the Stock on that date (or, if no Stock sale is
reported on that date, the next preceding Trading Day) on the New York Stock
Exchange, or if this definition is not applicable, the price as determined by
the Board of Directors of the Company in its discretion.

     "Phantom Stock" means the equivalent of a share of stock of the Company
which entitles the Participant to receive in exchange, at the time and under the
terms provided for distribution herein, an amount in cash equal to a share of
Stock.

     "Stock" means the common stock of the Company $.331/3 par value, or in the
event that the outstanding shares of common stock are later changed into or
exchanged for a different class of stock or securities of the Company (or any
other compensation) that other stock or security.

     "Trading Day" means a day on which trading of securities takes place on the
New York Stock Exchange and the NASDAQ National Market and on which shares of
Stock are traded.

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                                                                     Exhibit 4.1

                                                                       Exhibit A
                                                           Deferred Compensation
                                                              Plan for Directors

                             THE COASTAL CORPORATION
                             STOCK OPTION AGREEMENT

     Pursuant to the terms and conditions of The Coastal Corporation Deferred
Compensation Plan for Directors (the "Plan"), a copy of which is attached hereto
and incorporated in this Agreement by reference, The Coastal Corporation (the
"Company") grants to _______________________ (the "Optionee") the option to
purchase _____ shares of the Company's Common Stock, $.331/3 par value, at the
price of $____ per share (the "Option"), subject to adjustment for changes in
capitalization of the Company .

     This Option shall be for a term commencing on this date and shall expire at
the earliest of the end of (i) the five-year period commencing with the date of
grant, (ii) the three-year period commencing with the Director's retirement from
the Board or termination of Board membership, or (iii) the one-year period
commencing with the date of death of the Director. At the time of termination of
service as a Director, unvested Options shall be forfeited.

     This Option shall become exercisable (in whole shares) in the following
manner:

                                                 Cumulative Shares Exercisable
      First Anniversary of Date of Grant                    1/3
      Second Anniversary of Date of Grant                   2/3
      Third Anniversary of Date of Grant                    100%

     This Option is a nonqualified stock option which is not governed by Section
422 of the Internal Revenue Code of 1986, as amended.

     The terms and conditions of the 1997 Director Stock Plan shall govern this
Option to the extent not inconsistent with this Option or the Plan.

     The Optionee in accepting this Stock Option Agreement accepts and agrees to
be bound by all the terms and conditions *f this Agreement and of the Plan.

      Granted the _______ day of ______________________, 199___.

                                              THE COASTAL CORPORATION

                                              By

ACCEPTED this _______ day of __________________, 199_____.

                       Optionee

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