Document:

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                                                                 Exhibit 10.(iv)

                                ICHOR CORPORATION

                             2001 STOCK OPTION PLAN

1.  DEFINITIONS.

         The terms defined in this Section 1 shall, for all purposes of this
Plan, have the meanings herein specified:

         (a) "ADMINISTRATOR" shall mean such one or more persons who shall have
been appointed in accordance with Section 3.

         (b) "BOARD" shall mean the board of directors of the Company.

         (c) "CODE" shall mean the Internal Revenue Code of 1986, as amended.

         (d) "COMMON STOCK" shall mean the Company's presently authorized Common
Stock, except as this definition may be modified as provided in Section 8
hereof.

         (e) "COMPANY" shall mean Ichor Corporation, a Delaware corporation.

         (f) "DISABLED OPTIONEE" shall mean an Optionee who becomes disabled
within the meaning of Section 422(c)(6) of the Code.

         (g) "EFFECTIVE DATE" shall mean June 15, 2001.

         (h) "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended.

         (i) "FAIR MARKET VALUE" shall have the meaning given that term in
Section 7(H) hereof.

         (j) "NON-STATUTORY STOCK OPTION" shall mean an Option which does not
qualify as an incentive stock option, as such term is defined in Section 422 of
the Code.

         (k) "OPTION" shall mean a Stock Option granted by the Company pursuant
to the Plan to purchase shares of Common Stock.

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         (l) "OPTIONEE" shall mean a person who accepts an Option granted under
the Plan.

         (m) "OPTION PRICE" shall mean the price to be paid for the shares of
Common Stock being purchased pursuant to a Stock Option Agreement.

         (n) "OPTION PERIOD" shall mean the period from the date of grant of an
Option to the date after which such Option may no longer be exercised. Nothing
in this Plan shall be construed to extend the termination date of the Option
Period beyond the date set forth in the Stock Option Agreement.

         (o) "PLAN" shall mean this Ichor Corporation 2001 Stock Option Plan.

         (p) "PARTICIPANT " shall mean key persons employed by the Company, or a
Subsidiary thereof, directors of the Company, or a Subsidiary thereof, officers
of the Company, or a Subsidiary thereof, and consultants to the Company, or a
Subsidiary thereof.

         (q) "STOCK OPTION AGREEMENT" shall mean the written agreement between
the Company and Optionee confirming the Option and setting forth the terms and
conditions upon which it may be exercised.

         (r) "SUBSIDIARY" shall mean any corporation, partnership, business
trust, joint venture or other business entity in which the Company owns,
directly or indirectly through Subsidiaries, at least 50% of the beneficial
interests or total combined voting power of all classes of equity.

2. PURPOSES.

         The purposes of the Plan are to promote the growth and profitability of
the Company and its Subsidiaries by enabling it to attract and retain the best
available personnel for positions of substantial responsibility, to provide key
Participants with an opportunity for investment in the Company's Common Stock
and to give them an additional incentive to increase their efforts on behalf of
the Company and its Subsidiaries.

3. ADMINISTRATION.

         The Plan shall be administered by the Administrator. The Administrator
shall be appointed by the Board and shall consist of at least three members of
the Board, two of whom are non-employees of the Company. In the event that there
does not exist at least two non-employee members of the Board, then the
Administrator shall be comprised of the entire Board.

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         The Administrator shall have plenary authority in its discretion,
subject to and not inconsistent with the express provisions of the Plan, (i) to
grant Options, to determine the purchase price of the shares of Common Stock
covered by each Option, the term of each Option, the persons to whom, and the
time or times at which Options shall be granted, and the number of shares of
Common Stock to be covered by each Option; (ii) to interpret the Plan; (iii) to
prescribe, amend and rescind rules and regulations relating to the Plan; (iv) to
determine the terms and provisions of the Stock Option Agreements (which need
not be identical) entered into in connection with awards under the Plan; and (v)
to make all other determinations (including factual determinations) deemed
necessary or advisable for the administration of the Plan. The Administrator may
delegate to one or more of its members or to one or more agents such
administrative duties as it may deem advisable, and the Administrator or any
person to whom it has delegated duties as aforesaid may employ one or more
persons to render advice with respect to any responsibility or authority the
Administrator or such person may have under the Plan. Notwithstanding the
foregoing, each grant of an Option, and the terms thereof, to a member of the
Administrator shall be approved by the Board.

         The Administrator may employ attorneys, consultants, accountants or
other persons, and the Administrator, the Company and its officers and directors
shall be entitled to rely upon the advice, opinions or valuations of any such
persons. All actions taken and all interpretations and determinations made by
the Administrator in good faith shall be final and binding upon all persons who
have received Options, the Company and all other interested persons. No member
or agent of the Administrator shall be personally liable for any action,
determination or interpretation taken or made in good faith with respect to the
Plan or awards made thereunder, and all members and agents of the Administrator
shall be fully indemnified and protected by the Company in respect of any such
action, determination or interpretation.

4. ELIGIBILITY.

         Subject to the provisions of this Plan, the Administrator shall
determine and designate from time to time those key Participants of the Company
or its Subsidiaries to whom Options are to be granted and the number of shares
of Common Stock covered by such grants (subject to the approval of the Board in
the case of a grant to a member of the Administrator). In determining the
eligibility of an Participant to receive an Option, as well as in determining
the number of shares covered by such Option, the Administrator (or the Board, in
the case of a member of the Administrator) shall consider the position and
responsibilities of such Participant, the nature and value to the Company or a
Subsidiary of his or her services and accomplishments, his or her present and
potential contribution to the success of the Company or its Subsidiaries and
such other factors as the Administrator (or the Board) may deem relevant.

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5. SHARES AVAILABLE UNDER THE PLAN.

         The aggregate number of shares of Common Stock which may be issued or
delivered and as to which Options may be granted under the Plan is 5,000,000
shares. All such shares are subject to adjustment and substitution as set forth
in Section 8.

         If any Option granted under the Plan is canceled by mutual consent or
terminates or expires for any reason without having been exercised in full, the
shares of Common Stock subject to such Option shall again be available for
purposes of the Plan. The shares of Common Stock which may be issued or
delivered under the Plan may be either or both authorized but unissued shares or
repurchased shares, as shall be determined from time to time by the Board.

6. GRANT OF OPTIONS.

         The Administrator shall have full and complete authority, in its
discretion subject to the provisions of the Plan, to grant Options containing
such terms and conditions as the Administrator shall deem appropriate in respect
of the Non-Statutory Stock Options.

7. TERMS AND CONDITIONS OF OPTIONS.

         Options granted under the Plan shall be subject to the following terms
and conditions:

                  (A) The Option Price at which each Option may be exercised
         shall be such price as the Administrator, in its discretion, shall
         determine.

                  (B) The Option Price shall be payable in full in any one or
         more of the following ways:

                           (i) in cash; and/or

                           (ii) in shares of the Common Stock (which are owned
                  by the Optionee free and clear of all liens and other
                  encumbrances and which are not subject to the restrictions set
                  forth in Section 9) having a Fair Market Value on the date of
                  exercise of the Option which is equal to the Option Price for
                  the shares being purchased.

                  If the Option Price is paid in whole or in part in shares of
         Common Stock, any portion of the Option Price representing a fraction
         of a share shall be paid in cash. The date of exercise of an Option
         shall be determined under procedures established by the Administrator,
         and the Option Price shall be payable at such time or times as the
         Administrator, in its discretion, shall determine. No shares shall be
         issued or delivered upon exercise of an Option until full payment of
         the Option Price has been

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         made. When full payment of the Option Price has been made and subject
         to the restrictions set forth in Section 9, the Optionee shall be
         considered for all purposes to be the owner of the shares with respect
         to which payment has been made. Payment of the Option Price with shares
         shall not increase the number of shares of Common Stock which may be
         issued or delivered under the Plan as provided in Section 5.

                  (C) No Non-Statutory Stock Option shall be exercisable after
         the expiration of ten years and six months from the date of grant,
         unless such period is extended by the Company. Subject to this Section
         7(C) and Sections 7(E), 7(F) and 7(G), Options may be exercised at such
         times, in such amounts and subject to such restrictions as shall be
         determined, in its discretion, by the Administrator.

                  (D) No Option shall be transferable by an Optionee other than
         by will, or if an Optionee dies intestate, by the laws of descent and
         distribution, and all Options shall be exercisable during the lifetime
         of an Optionee only by the Optionee.

                  (E) Unless otherwise determined by the Administrator and set
         forth in the Stock Option Agreement:

                           (i) If the relationship between the Optionee (whether
                  or not a Disabled Optionee) and the Company is voluntarily
                  terminated with the written consent of the Company or a
                  Subsidiary, or if an Optionee retires under any retirement
                  plan of the Company or a Subsidiary, any then-outstanding
                  Non-Statutory Stock Options held by such Optionee shall be
                  exercisable (to the extent exercisable on the date of
                  termination of employment) by such Optionee at any time prior
                  to the expiration date of such Option or within three months
                  after the date of termination of employment, whichever is the
                  shorter period;

                           (ii) Following the death of an Optionee during his or
                  her relationship with the Company, any outstanding Option held
                  by such Optionee at the time of death shall be exercisable in
                  full (whether or not so exercisable on the date of the death
                  of such Optionee) by the person or persons entitled to do so
                  under the will of the Optionee, or, if the Optionee shall fail
                  to make testamentary disposition of such Option or shall die
                  intestate, by the legal representative of the estate of such
                  Optionee, at any time prior to the expiration date of such
                  Option or within nine months after the date of death,
                  whichever is the shorter period. Following the death of an
                  Optionee after the termination of the Optionee's relationship
                  with the Company during a period when an Option is exercisable

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                  as provided in clause (i) above, any outstanding Option held
                  by the Optionee at the time of death shall be exercisable by
                  such person or persons entitled to do so under the will of the
                  Optionee or by such Optionee's legal representative to the
                  extent that such Option was exercisable by the Optionee at the
                  time of death at any time prior to the expiration date of such
                  Option or within nine months after the date of death,
                  whichever is the shorter period;

                           (iii) If the relationship between the Company and the
                  Optionee is terminated by the Company or a Subsidiary without
                  cause, any then-outstanding Non-Statutory Stock Option held by
                  such Optionee shall be exercisable (to the extent exercisable
                  on the date of termination of employment) by such Optionee at
                  any time prior to the expiration date of such Option or within
                  30 days after the date of such termination, whichever is the
                  shorter period; and

                           (iv) If the relationship between the Company and the
                  Optionee terminates for any reason other than voluntary
                  termination with the consent of the Company or a Subsidiary,
                  retirement under any retirement plan of the Company or a
                  Subsidiary, death or involuntary termination without cause,
                  the rights of such Optionee under any then-outstanding Option
                  shall terminate at the time of such termination of the
                  relationship. In addition, if an Optionee engages in the
                  operation or management of a business, whether as owner,
                  partner, officer, director, employee or otherwise and whether
                  during or after termination of employment, which is in
                  competition with the Company or any of its Subsidiaries, the
                  Administrator may in its discretion immediately terminate all
                  Options held by the Optionee. For purposes of this subsection
                  (F), the following events or circumstances shall constitute
                  "CAUSE", to wit: perpetration of defalcations; willful,
                  reckless or grossly negligent conduct entailing a substantial
                  violation of any material laws or governmental regulations or
                  orders applicable to the Company or a Subsidiary; or repeated
                  and deliberate failure, after written notice, to comply with
                  policies or directives of the Chief Executive Officer of the
                  Company or a Subsidiary or of the Board.

         Whether termination of the Optionee's relationship is a voluntary
         termination with the written consent of, or an involuntary termination
         for cause from, the Company or a Subsidiary, whether an Optionee is a
         Disabled Optionee and whether an Optionee has engaged in the operation
         or management of a business which is in competition with the Company or
         any of its Subsidiaries shall be determined in each case by the

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         Administrator, and any such determination by the Administrator shall be
         final and binding.

                  (F) All Options granted hereunder shall be effective solely
         upon the delivery of a Stock Option Agreement, or an amendment thereto,
         duly executed by the Chief Executive Officer of the Company on behalf
         of the Company and by the Participant to whom such Options.

                  (G) Fair market value of the Common Stock shall be determined
         as follows:

                           (i) so long as the Common Stock is listed for trading
                  on the NASDAQ Small-Cap Market the NASDAQ National Market or
                  such other reliable publication as the Administrator shall, in
                  its discretion, choose to rely upon, the fair market value of
                  the Common Stock shall be determined by taking the average of
                  the "bid" and "ask" prices per share of the Common Stock as
                  quoted in such reliable publication on the trading date for
                  the two week period ending on the last business day
                  immediately preceding the date as of which fair market value
                  is to be determined; or

                           (ii) in the event the Common Stock is not listed for
                  trading on the aforementioned NASDAQ Markets or in such other
                  reliable publications as may be acceptable to the
                  Administrator, fair market value shall be determined (as of a
                  date not more than 12 months preceding the date as of which
                  such determination is required to be made hereunder) by an
                  independent appraiser selected by the Board in its sole
                  discretion. The appraiser shall be instructed to assess the
                  fair market value of a minority interest in the Common Stock,
                  taking into consideration such factors as the appraiser deems
                  relevant, which factors may include but are not limited to (i)
                  the Company's past, current and expected profitability, (ii)
                  the Company's past, present and expected revenues and net cash
                  flow, (iii) the Company's book value, and (iv) the absence of
                  an organized tracking market for the Common Stock.

                           The date of the determination of the Administrator to
                  grant an Option shall deemed to be the date on which an Option
                  is granted, provided that the Participant to whom the Option
                  is granted is promptly notified of the grant and an Option
                  Agreement is duly executed as of the date of the resolution.

                  (H) The obligation of the Company to issue or deliver shares
         of the Common Stock under the Plan shall be subject to (i) the
         effectiveness

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         of a registration statement under the Securities Act of 1933, as
         amended, with respect to such shares, if deemed necessary or
         appropriate by counsel for the Company, and (ii) all other applicable
         securities laws, regulations, rules and orders which may then be in
         effect.

         Subject to the foregoing provisions of this Section 7 and the other
provisions of the Plan, any Option granted under the Plan shall be subject to
such other terms and conditions as the Administrator shall deem advisable.

8. ADJUSTMENT AND SUBSTITUTION OF SHARES.

         If a dividend or other distribution shall be declared upon the Common
Stock payable in shares of Common Stock, the number of shares of Common Stock
then subject to any outstanding Option and the number of shares which may be
issued or delivered under the Plan but are not then subject to an outstanding
Option shall be adjusted by adding thereto the number of shares which would have
been distributable thereon if such shares had been outstanding on the date fixed
for determining the stockholders entitled to receive such stock dividend or
distribution.

         If the outstanding shares of Common Stock shall be changed into or
exchangeable for a different number or kind of shares of stock or other
securities of the Company or another corporation, whether through
reorganization, reclassification, recapitalization, stock split-up, combination
of shares, merger or consolidation, then there shall be substituted for each
share of Common Stock subject to any then-outstanding Option and for each share
of Common Stock which may be issued or delivered under the Plan but is not then
subject to an outstanding Option, the number and kind of shares of stock or
other securities into which each outstanding share of Common Stock shall be so
changed or for which each such share shall be exchangeable.

         In the case of any adjustment or substitution as provided for in this
Section 8, the aggregate Option Price for all shares subject to each
then-outstanding Option prior to such adjustment or substitution shall be the
aggregate Option Price for all shares of stock or other securities (including
any fraction) to which such shares shall have been adjusted or which shall have
been substituted for such shares. Any new Option Price per share shall be
carried to at least three decimal places with the last decimal place rounded
upwards to the nearest whole number.

         No adjustment or substitution provided for in this Section 8 shall
require the Company to issue or sell a fraction of a share or other security.
Accordingly, all fractional shares or other securities which result from any
such adjustment or substitution shall be eliminated and not carried forward to
any subsequent adjustment or substitution.

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9. RESTRICTIONS ON TRANSFER OF CERTAIN SHARES.

         The Company is authorized to (i) retain the certificate(s) representing
such shares or place such certificates in the custody of its transfer agent,
(ii) place a restrictive legend on such shares, and/or (iii) issue a stop
transfer order to the transfer agent with respect to such shares in order to
enforce the transfer restrictions of this Section and Section 7(I) hereof.

10. EFFECT OF THE PLAN ON THE RIGHTS OF PARTICIPANTS AND EMPLOYER.

         Neither the adoption of the Plan nor any action of the Board or the
Administrator pursuant to the Plan shall be deemed to give any Participant any
right to be granted an Option under the Plan, and nothing in the Plan, in any
Option granted under the Plan or in any Stock Option Agreement shall confer any
right to any Participant to continue his or her relationship with or remain in
the employ of the Company or any Subsidiary or interfere in any way with the
rights of the Company or any Subsidiary to terminate the its relationship with
or employment of any Participant at any time.

11. INTERPRETATION, AMENDMENT, AND TERMINATION.

         Except as provided elsewhere in this Plan, in the event of any dispute
or disagreement as to the interpretation of this Plan or of any rule, regulation
or procedure, or as to any question, right or obligation arising from or related
to the Plan, the decision of the Board shall be final and binding upon all
persons. The Board may, in its discretion, amend or terminate this Plan at any
time. Termination of the Plan shall not affect the rights of Optionees or their
successors under any Options outstanding and not exercised in full on the date
of termination.

12. WITHHOLDING TAXES.

         The Company unilaterally or by arrangement with the Optionee shall make
appropriate provision for satisfaction of any obligation to withhold taxes in
the case of any grant, award, exercise or other transaction which gives rise to
a withholding requirement. An Optionee or other person receiving shares issued
upon exercise of a Non-Statutory Option shall be required to pay the Company or
any Subsidiary in cash the amount of any taxes which the Company or Subsidiary
is required to withhold and the Company shall not be obligated to provide the
Optionee with the Company's Common Stock until such time as such cash is paid to
the Company.

         Notwithstanding the preceding sentence and subject to such rules as the
Administrator may adopt, Optionees who are subject to Section 16(b) of the
Exchange Act, and, if determined by the Administrator, other Optionees, may
satisfy the obligation, in whole or in part, by election on or before the date
that the amount of tax

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required to be withheld is determined, to have the number of shares received
upon exercise of the Non-Statutory Option reduced by the number of shares the
fair market value of which is equal to the withholding tax obligations.

13. EFFECTIVE DATE AND DURATION OF PLAN.

         The effective date and date of adoption of the Plan shall be the
Effective Date. No Option may be granted under the Plan subsequent to the date
which is ten (10) years following the Effective Date.

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                                                                    EXHIBIT 10.1

                            EL PASO ENERGY PARTNERS
                           1998 COMMON UNIT PLAN FOR
                             NON-EMPLOYEE DIRECTORS

              AMENDED AND RESTATED EFFECTIVE AS OF APRIL 18, 2001
<PAGE>   2
                               TABLE OF CONTENTS

<Table>
<S>                                                                           <C>
SECTION 1   PURPOSE........................................................... 1

SECTION 2   UNITS SUBJECT TO THE PLAN......................................... 1

SECTION 3   ADMINISTRATION OF THE PLAN........................................ 2

SECTION 4   PARTICIPATION IN THE PLAN......................................... 2

SECTION 5   UNIT OPTION GRANTS AND TERMS...................................... 2

SECTION 6   RESTRICTED UNIT GRANTS AND TERMS.................................. 5

SECTION 7   GENERAL PROVISIONS................................................ 6

SECTION 8   EFFECTIVE DATE AND DURATION OF PLAN............................... 7

SECTION 9   COMPLIANCE WITH SECTION 16........................................ 7

SECTION 10  AMENDMENT, TERMINATION OR DISCONTINUANCE OF THE PLAN.............. 7
</Table>

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                            EL PASO ENERGY PARTNERS
                             1998 COMMON UNIT PLAN
                           FOR NON-EMPLOYEE DIRECTORS
              AMENDED AND RESTATED EFFECTIVE AS OF APRIL 18, 2001

                               SECTION 1  PURPOSE

     The purpose of the El Paso Energy Partners 1998 Common Unit Plan for
Non-Employee Directors, Amended and Restated effective as of April 18, 2001
(the "Plan"), is to attract and retain the services of experienced and
knowledgeable non-employee Directors of El Paso Energy Partners Company (the
"Company"), the general partner of El Paso Energy Partners, L.P. (the
"Partnership"), and to provide an incentive for such Directors to increase
their proprietary interests in the Partnership's long-term success and
progress.

                      SECTION 2  UNITS SUBJECT TO THE PLAN

     2.1  Subject to Section 2.2, the maximum number of common units of the
Partnership (the "Common Units"), for which unit options and restricted units
may be granted under the Plan is one hundred thousand (100,000) (the "Units").
The Units shall be Common Units held in the Company's or the Partnership's, as
appropriate, treasury or issued out of the authorized but unissued units of the
Partnership, or partly out of each, as shall be determined by the Plan
Administrator (defined in Section 3 below).

     2.2  In the event of a recapitalization, unit split, unit dividend,
exchange of shares or units, merger, reorganization, change in corporate
structure or units of the Partnership or similar event, the Plan Administrator,
may make appropriate adjustments in the number of units authorized for the Plan
and, with respect to outstanding unit options and restricted units, the Plan
Administrator may make appropriate adjustments in the number of Units and the
unit option price, as applicable. In the event of any adjustment in the number
of Units covered by any unit option or restricted unit, any fractional units
resulting from such adjustment shall be disregarded and each such unit option
or restricted unit shall cover only the number of full Units resulting from
such adjustment.

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                      SECTION 3 ADMINISTRATION OF THE PLAN

     Unless otherwise determined by the Board of Directors of the Company (the
"Board") and subject to Section 10, the Plan shall be administered by a
management committee (the "Plan Administrator") consisting of the Chairman of
the Board of the Company and such other senior officers of the Company or its
subsidiaries or affiliates as the Chairman of the Board shall designate. The
Plan Administrator shall interpret the Plan, shall prescribe, amend and rescind
rules relating to it from time to time as it deems proper and in the best
interests of the Company and the Partnership, and shall take any other action
necessary for the administration of the Plan.

                      SECTION 4 PARTICIPATION IN THE PLAN

     Each member of the Board elected or appointed who is not otherwise an
employee of the Company, the Partnership or any subsidiary or affiliate thereof
(a "Participant") shall receive unit option and restricted unit grants as
provided in the Plan.

                     SECTION 5 UNIT OPTION GRANTS AND TERMS

     Each unit option granted to a Participant under the Plan and the issuance
of Units thereunder shall be subject to the following terms:

5.1  UNIT OPTION GRANTS

     A Participant shall automatically receive (a) a grant of unit options to
purchase two thousand five hundred (2,500) Units when the Participant is
initially elected or appointed as a Director of the Company and (b) a grant of
unit options to purchase two thousand (2,000) Units on each date the Participant
is reelected as a Director of the Company at the Annual Meeting of Stockholders
of the Company (the "Annual Meeting"), beginning with the Annual Meeting in
2001.

     Each unit option granted under the Plan shall be evidenced by a written
instrument delivered by or on behalf of the Plan Administrator containing terms,
provisions and conditions not inconsistent with the Plan.

5.2  VESTING OF UNIT OPTIONS

     Each unit option granted to a Participant under the Plan shall be fully
vested and immediately exercisable upon grant.

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5.3       UNIT OPTION PRICE

          The unit option price for a unit option granted under the Plan shall
be the Fair Market Value of the Units covered by the unit option at the time the
unit option is granted. For purposes of the Plan, "Fair Market Value" shall be
the mean between the highest and lowest quoted selling prices at which the
Common Units were sold on such date as reported in the NYSE Composite
Transactions by the Wall Street Journal, or any other comparable service as the
Plan Administrator may determine is reliable, on such date or, if no Common
Units were traded on such date, on the next preceding date on which Common Units
were so traded.

5.4       TIME AND MANNER OF EXERCISE OF A UNIT OPTION

          Each unit option may be exercised in whole or in part at any time and
from time to time; provided, however, that no fewer than one hundred (100)
Units (or the remaining Units then purchasable under the unit option, if less
than one hundred (100) Units) may be purchased upon exercise of any unit option
hereunder and that only whole Units will be issued pursuant to the exercise of
any unit option.

          The purchase price of units purchased under unit options shall be
paid in full to the Company upon the exercise of the unit option by delivery of
consideration equal to the product of the unit option price and the number of
units purchased (the "Purchase Price"). Such consideration may be paid (i) in
cash or by check; (ii) in Common Units already owned by the Participant for a
sufficient time (generally six (6) months) to not result in an accounting
charge to the Company, or any combination of cash and Common Units, with the
Fair Market Value of such Common Units valued as of the day prior to delivery;
or (iii) by delivery of a properly executed exercise notice, together with
irrevocable instructions to a broker designated by the Plan Administrator in a
form satisfactory to the Plan Administrator to promptly deliver to the Company
the amount of sale or loan proceeds to pay the Purchase Price. The Plan
Administrator can specify that unit options granted or to be granted shall
permit additional techniques to pay the Purchase Price. A Participant shall
have none of the rights of a unitholder until the Common Units are issued to
the Participant.

5.5       TERM OF UNIT OPTIONS

          Each unit option shall expire ten (10) years from the date of the
granting thereof, but shall be subject to earlier termination as follows:

          (a)  In the event that a Participant ceases to be a Director of the
               Company for any reason other than the death of the Participant,
               the unit options granted to such Participant shall expire unless
               exercised by him or her within thirty-six (36) months after the
               date such Participant ceases to be a Director of the Company.

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          (b)  In the event of the death of a Participant, whether during the
               Participant's service as a Director or during the thirty-six (36)
               month period referred to in Section 5.5(a), the unit options
               granted to such Participant shall be exercisable, and such unit
               options shall expire unless exercised within twelve (12) months
               after the date of the Participant's death, by the legal
               representatives or the estate of such Participant, by any person
               or persons whom the Participant shall have designated in writing
               on forms prescribed by and filed with the Company or, if no such
               designation has been made, by the person or persons to whom the
               Participant's rights have passed by will or the laws of descent
               and distribution.

5.6       TRANSFERABILITY

          During a Participant's lifetime, a unit option may be exercised only
by the Participant. Unit options granted under the Plan and the rights and
privileges conferred thereby shall not be subject to execution, attachment or
similar process and may not be transferred, assigned, pledged or hypothecated in
any manner (whether by operation of law or otherwise) other than by will or the
applicable laws of descent and distribution except that, to the extent permitted
by applicable law, including Section 16, and the rules and regulations
promulgated thereunder by the Securities and Exchange Commission, of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), the Plan
Administrator may permit a recipient of a unit option to designate in writing
during the Participant's lifetime a beneficiary to receive and exercise unit
options in the event of the Participant's death (as provided in Section 5.5(b)).
In the event of any attempt to transfer, assign, pledge, hypothecate or
otherwise dispose of any unit option under the Plan or of any right or privilege
conferred thereby, contrary to the provisions of the Plan, or the sale or levy
or any attachment or similar process upon the rights and privileges conferred
thereby, such unit option shall be forfeited to the Company or the Partnership,
as appropriate.

5.7       DEFERRAL ELECTION

          A Participant may elect irrevocably at any time (at a time and in a
manner determined by the Plan Administrator) prior to exercising a unit option
granted under the Plan that issuance of Units upon exercise of such unit option
shall be deferred until a pre-specified date in the future or until a
Participant ceases to serve as a Director of the Company, as elected by the
Participant. After the exercise of any such unit option and prior to the
issuance of any deferred units, the number of Units issuable to the Participant
shall be credited to a memorandum deferred account and any dividends or other
distributions paid on the Common Units shall be deemed reinvested in additional
Common Units until all credited Units shall become issuable pursuant to the
Participant's election.

<PAGE>   7
                   SECTION 6 RESTRICTED UNIT GRANTS AND TERMS

     Each restricted unit granted to a Participant under the Plan and the
issuance of Common Units thereunder shall be subject to the following terms:

6.1 RESTRICTED UNIT GRANTS

     A Participant shall automatically receive a grant of restricted units
equal to the Participant's annual retainer (including a chairman's retainer, if
applicable) divided by the Fair Market Value, as defined in Section 5.3, of the
Common Units on the grant date on each date the Participant is reelected as a
Director of the Company at the Annual Meeting, beginning with the Annual
Meeting in 2001, with such number of restricted units rounded down to the
nearest whole unit. Each grant shall be evidenced by a written instrument
delivered by or on behalf of the Company containing provisions not inconsistent
with the Plan. The Participant receiving a grant of restricted units shall be
recorded as a unitholder of the Company. Each Participant who receives a grant
of restricted units shall have all the rights of a unitholder with respect to
such Units (except as provided in the restrictions on transferability),
including, but not limited to, the right to distributions on such Units;
provided, however, that no Participant awarded restricted units shall have any
rights as a unitholder with respect to any Units subject to the Participant's
restricted unit grant prior to the date of issuance to the Participant of a
certificate or certificates for such Units.

6.2 TRANSFERABILITY

     During the Participant's service as a Director of the Company, the
restricted units may not be sold, assigned, transferred, pledge, hypothecated
or otherwise encumbered or disposed of by the recipient (the "Restriction
Period"), except in the event of death or permanent disability, the transfer
to the Company or the Partnership as provided under the Plan or the Plan
Administrator's waiver or modification of such restrictions in the agreement
evidencing the grant of restricted units, or by resolution of the Plan
Administrator adopted at any time. In the event of any attempt by the
Participant to sell, exchange, transfer, pledge or otherwise dispose of
restricted units in violation of the terms of the Plan, such units shall be
forfeited to the Company or the Partnership, as appropriate.

6.3 TERM OF RESTRICTED UNITS

     Upon the Participant's termination as a Director of the Company for any
reason, the restrictions on the Participant's restricted units shall end and
the Participant (or the participant's legal representative, beneficiary or
heir) shall be entitled to receive, upon payment to the Company of the par
value of the Common Units, if required, in a manner determined by the Plan
Administrator, one (1) Common Unit for each restricted unit granted pursuant to
Section 6.1.

<PAGE>   8
     A Participant entitled to receive restricted units under the Plan shall be
issued a certificate or shall have a book-entry account established for such
units. Such certificate or account shall be registered in the name of the
Participant, and shall bear an appropriate legend reciting the terms, conditions
and restrictions, if any, applicable to such units and shall be subject to
appropriate stop-transfer orders. The Plan Administrator may require, under such
terms and conditions as it deems appropriate or desirable, that the certificates
(if issued) for restricted units delivered under the Plan may be held in custody
by a bank or other institution, or that the Company or the Partnership may
itself hold such units in custody until the Restriction Period expires or until
restrictions thereon otherwise lapse, and may require, as a condition of any
issuance of restricted units that the Participant shall have delivered a units
power endorsed in blank relating to the restricted units.

                          SECTION 7 GENERAL PROVISIONS

     7.1  Neither the Plan, nor the granting of a unit option or restricted
unit, nor any other action taken pursuant to the Plan shall constitute or be
evidence of any agreement or understanding, express or implied, that a
Participant has a right to continue as a Director for any period of time or at
any particular rate of compensation.

     7.2  The Company shall not be required to issue any certificate or
certificates for Units upon the exercise of a unit option or with respect to
restricted units granted under the Plan, or record as a holder of record of
Units the name of the individual exercising a unit option or receiving a grant
of restricted units under the Plan, (a) without obtaining to the complete
satisfaction of the Plan Administrator the approval of all regulatory bodies
deemed necessary by the Plan Administrator, and (b) without complying, to the
Plan Administrator's complete satisfaction, with all rules and regulations
under federal, state or local law deemed applicable by the Plan Administrator.

     7.3  All costs and expenses of the adoption and administration of the Plan
shall be borne by the Company or the Partnership, as appropriate.

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

     7.5  Appropriate provision shall be made for all taxes required to be
withheld in connection with the exercise or other taxable event with respect to
unit options or restricted units under the applicable laws or regulations of
any governmental authority, whether federal, state or local and whether
domestic or foreign.

     A participant is solely responsible for obtaining, or failing to obtain,
qualified tax advice prior to the Participant's (i) entering into any
transaction under or with respect to the Plan, (ii) designating or choosing the
times of distributions under the Plan, or (iii) disposing of any Common Units
issued under the Plan.

<PAGE>   9
               SECTION 8  EFFECTIVE DATE AND DURATION OF THE PLAN

     The Plan shall be effective as of April 14, 1998, and amended and restated
effective as of April 18, 2001. The Plan shall continue in effect until it is
terminated by action of the Board or the Company's stockholder, but such
termination shall not affect the then-outstanding terms of any unit options or
restricted units, or the Company's obligation to issue Units under any
then-exercised unit options as to which a deferral election has been made under
Section 5.7 or pursuant to restricted units in which the Restriction Period has
ended.

                     SECTION 9  COMPLIANCE WITH SECTION 16

     The Company's intention is that, so long as any of the Partnership's equity
securities are registered pursuant to Section 12(b) or 12(g) of the Exchange
Act, with respect to awards granted to or held by Section 16 Insiders, the Plan
shall comply in all respects with Rule 16b-3 or any successor rule or rule of
similar application under Section 16 of the Exchange Act or rules or regulations
thereunder, and, if any Plan provision is later found not to be in compliance
with such exemption under Section 16, that provision shall be deemed modified as
necessary to meet the requirements of such applicable exemption. For purposes of
the Plan, "Section 16 Insider" means any person who receives unit options or
restricted units hereunder and who is subject to the requirements of Section 16
of the Exchange Act, and the rules and regulations promulgated thereunder.

        SECTION 10  AMENDMENT, TERMINATION OR DISCONTINUANCE OF THE PLAN

     10.1 Subject to the Board and Section 10.2, the Plan Administrator may from
time to time make such amendments to the Plan as it may deem proper and in the
best interest of the Company and the Partnership, including, but not limited to,
any amendment necessary to ensure that the Company and Partnership may obtain
any regulatory approval referred to in Section 7.2; provided, however, that
unless the Plan Administrator determines that such change does not materially
impair the value of the unit options or restricted units, no change in any unit
option or restricted unit theretofore granted may be made which would impair the
right of the Participant to acquire Units or retain Units that the Participant
may have acquired as a result of the Plan without the consent of the
Participant.

     10.2 The Board may at any time suspend the operation of or terminate the
Plan with respect to any Units which are not at that time subject to any
outstanding unit options or restricted units.

<PAGE>   10
          IN WITNESS WHEREOF, the Company has caused the Plan to be amended and
restated on behalf of the Partnership, effective as of April 18, 2001.

                                          EL PASO ENERGY PARTNERS, L.P.
                                          By:   El Paso Energy Partners Company,
                                                The General Partner

                                          By   /s/ H. BRENT AUSTIN
                                               --------------------------------
                                          Title: Executive Vice President

ATTEST:

BY /s/ DAVID SIDDALL
   -----------------------------
Title: Corporate Secretary

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