Document:

exv10wbw2

 

EXHIBIT 10.B.2

AMENDMENT NO. 2 TO THE

EL PASO ENERGY CORPORATION

STOCK OPTION PLAN FOR

NON-EMPLOYEE DIRECTORS

     Pursuant to Section 9.1 of the El Paso Energy Corporation Stock Option Plan for Non-Employee
Directors, Amended and Restated effective as of January 20, 1999 (the “Plan”), the Plan is hereby
amended as follows, effective February 7, 2001:

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

     NOW THEREFORE, the name of the Plan is hereby changed to the “El Paso Corporation Stock Option
Plan for Non-Employee Directors” and all references in the Plan to “El Paso Energy Corporation” or
the “Company” shall mean “El Paso Corporation.”

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

	 	 	 	 	 
	 	EL PASO CORPORATION

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

Human Resources and Administration 	 
	 

Attest:

	 	 	 
	 

	 	 
	/s/ David L. Siddall

	 	  
	 

	 	 
	Corporate Secretaryexv10wcw1

 

EXHIBIT 10.C.1

AMENDMENT NO. 1 TO THE

EL PASO ENERGY CORPORATION

2001 STOCK OPTION PLAN

FOR NON-EMPLOYEE DIRECTORS

     Pursuant to Section 9.1 of the El Paso Energy Corporation 2001 Stock Option Plan for
Non-Employee Directors, effective as of January 29, 2001 (the “Plan”), the Plan is hereby amended
as follows, effective February 7, 2001:

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

     NOW THEREFORE, the name of the Plan is hereby changed to the “El Paso Corporation 2001 Stock
Option Plan for Non-Employee Directors” and all references in the Plan to “El Paso Energy
Corporation” or the “Company” shall mean “El Paso Corporation.”

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

	 	 	 	 	 
	 	EL PASO CORPORATION

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

Human Resources and Administration 	 
	 

Attest:

	 	 	 
	 

	 	 
	/s/ David L. Siddall
	 	 
	 

	 	 
	Corporate Secretaryexv10wcw2

 

EXHIBIT 10.C.2

AMENDMENT NO. 2 TO THE

EL PASO CORPORATION

2001 STOCK OPTION PLAN

FOR NON-EMPLOYEE DIRECTORS

     Pursuant to authorization by the El Paso Corporation Board of Directors (the “Board”) and
Section 9.2 of the El Paso Corporation 2001 Stock Option Plan for Non-Employee Directors, effective
as of January 29, 2001, as amended (the “Plan”), the Plan is hereby amended as follows, effective
December 4, 2003:

     WHEREAS, the Board, based upon a recommendation from its Compensation Committee, has
determined it is in the best interests of the Company to terminate the Plan.

     NOW THEREFORE, the Plan is hereby terminated with respect to any Shares which are not at the
effective date of this amendment subject to any outstanding stock options, effective December 4,
2003. The termination of the Plan does not impair the right of a Participant to acquire Shares or
retain Shares that the Participant may have acquired as a result of participation in the Plan prior
to the effective date of this amendment.

     IN WITNESS WHEREOF, the Company has caused this amendment to be duly executed on this
4th day of December, 2003.

	 	 	 	 	 
	 	EL PASO CORPORATION

 	 
	 	By:  	   /s/ Susan B. Ortenstone             
 	 
	 	 	Susan B. Ortenstone 	 
	 	 	Senior Vice President,

Human Resources 	 
	 

     ATTEST:

	 	 	 	 	 
	 	 	 	 	 
	     By: 
	 	  /s/ David L. Siddall
	 	
	 	 	 
	 	 
	 	 	Corporate Secretaryexv10we

 

EXHIBIT 10.E

EL PASO ENERGY CORPORATION

1999 OMNIBUS INCENTIVE 

COMPENSATION PLAN

Effective as of January 20, 1999

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	SECTION 1 PURPOSES
	 	 	1	 
	 
	 	 	 	 
	SECTION 2 DEFINITIONS
	 	 	1	 
	2.1 Adjusted Value
	 	 	1	 
	2.2 Beneficiary
	 	 	1	 
	2.3 Board of Directors
	 	 	1	 
	2.4 Cause
	 	 	1	 
	2.5 Change in Control
	 	 	2	 
	2.6 Code
	 	 	3	 
	2.7 Common Stock
	 	 	3	 
	2.8 Exchange Act
	 	 	3	 
	2.9 Fair Market Value
	 	 	3	 
	2.10 Good Reason
	 	 	4	 
	2.11 Incentive Award
	 	 	5	 
	2.12 Incentive Stock Option
	 	 	5	 
	2.13 Management Committee
	 	 	5	 
	2.14 Maximum Annual Employee Grant
	 	 	5	 
	2.15 Nonqualified Option
	 	 	5	 
	2.16 Option Price
	 	 	5	 
	2.17 Participant
	 	 	5	 
	2.18 Performance Cycle
	 	 	5	 
	2.19 Performance Goals
	 	 	6	 
	2.20 Performance Peer Group
	 	 	6	 
	2.21 Performance Period
	 	 	6	 
	2.22 Performance Ranking Position
	 	 	7	 
	2.23 Performance Unit or Units
	 	 	7	 
	2.24 Permanent Disability or Permanently Disabled
	 	 	7	 
	2.25 Plan Administrator
	 	 	7	 
	2.26 Restricted Stock
	 	 	7	 
	2.27 Rule 16b-3
	 	 	7	 
	2.28 Section 16 Insider
	 	 	8	 
	2.29 Section 162(m)
	 	 	8	 
	2.30 Subsidiary
	 	 	8	 
	2.31 Total Shareholder Return
	 	 	8	 
	2.32 Valuation Date
	 	 	8	 
	 
	 	 	 	 
	SECTION 3 ADMINISTRATION
	 	 	8	 
	 
	 	 	 	 
	SECTION 4 ELIGIBILITY
	 	 	10	 
	 
	 	 	 	 
	SECTION 5 SHARES AND UNITS AVAILABLE FOR THE PLAN
	 	 	10	 

					
	 	 	 	 	 
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	SECTION 6 STOCK OPTIONS
	 	 	11	 
	 
	 	 	 	 
	SECTION 7 STOCK APPRECIATION RIGHTS
	 	 	18	 
	 
	 	 	 	 
	SECTION 8 LIMITED STOCK APPRECIATION RIGHTS
	 	 	19	 
	 
	 	 	 	 
	SECTION 9 PERFORMANCE UNITS
	 	 	20	 
	9.1 Grants of Units
	 	 	20	 
	9.2 Notice to Participants
	 	 	20	 
	9.3 Vesting
	 	 	20	 
	9.4 Valuation of Performance Units
	 	 	21	 
	9.5 Entitlement to Payment
	 	 	22	 
	9.6 Deferred Payment
	 	 	25	 
	9.7 Acceleration of Payment Due to Change in Control
	 	 	25	 
	 
	 	 	 	 
	SECTION 10 RESTRICTED STOCK
	 	 	25	 
	 
	 	 	 	 
	SECTION 11 INCENTIVE AWARDS
	 	 	28	 
	11.1 Procedures for Incentive Awards
	 	 	28	 
	11.2 Performance Goal Certification
	 	 	28	 
	11.3 Maximum Incentive Award Payable
	 	 	28	 
	11.4 Discretion to Reduce Awards; Participant’s Performance
	 	 	29	 
	11.5 Required Payment of Incentive Awards
	 	 	29	 
	11.6 Restricted Stock Election
	 	 	30	 
	11.7 Deferred Payment
	 	 	30	 
	11.8 Payment Upon Change in Control
	 	 	30	 
	 
	 	 	 	 
	SECTION 12 REGULATORY APPROVALS AND LISTING
	 	 	31	 
	 
	 	 	 	 
	SECTION 13 EFFECTIVE DATE AND TERM OF PLAN
	 	 	32	 
	 
	 	 	 	 
	SECTION 14 GENERAL PROVISIONS
	 	 	32	 
	 
	 	 	 	 
	SECTION 15 COMPLIANCE WITH RULE 16b-3 AND SECTION 162(m)
	 	 	35	 
	 
	 	 	 	 
	SECTION 16 AMENDMENT, TERMINATION OR DISCONTINUANCE
OF THE PLAN
	 	 	35	 

					
	 	 	 	 	 
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ii

 

EL PASO ENERGY CORPORATION

1999 OMNIBUS INCENTIVE COMPENSATION PLAN

SECTION 1 PURPOSES

     The purposes of the El Paso Energy Corporation 1999 Omnibus Incentive Compensation Plan (the
“Plan”) are to promote the interests of El Paso Energy Corporation (the “Company”) and its
stockholders by strengthening its ability to attract and retain officers and key management
employees (“key management employees” means those employees who hold the position of department
director) in the employ of the Company and its Subsidiaries (as defined below) by furnishing
suitable recognition of their ability and industry which contribute materially to the success of
the Company and to align the interests and efforts of the Company’s officers and key management
employees to the long-term interests of the Company’s stockholders, and to provide a direct
incentive to the Participants (as defined below) to achieve the Company’s strategic and financial
goals. The Plan provides for the grant of stock options, limited stock appreciation rights, stock
appreciation rights, restricted stock, incentive awards and performance units in accordance with
the terms and conditions set forth below.

SECTION 2 DEFINITIONS

     Unless otherwise required by the context, the following terms when used in the Plan shall have
the meanings set forth in this Section 2:

2.1 Adjusted Value

     The dollar value of Performance Units determined as of a Valuation Date.

2.2 Beneficiary

     The person or persons designated by the Participant pursuant to Section 6.4(f) or Section 14.7
of this Plan to whom payments are to be paid pursuant to the terms of the Plan in the event of the
Participant’s death.

2.3 Board of Directors

     The Board of Directors of the Company.

2.4 Cause

     The Company may terminate the Participant’s employment for Cause. A termination for Cause is
a termination evidenced by a resolution adopted in good faith by two-thirds (2/3) of the Board of
Directors that the Participant (i) willfully and continually failed to substantially perform the
Participant’s duties with the Company (other than a

			
	 	 	 
	 	 	 
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failure resulting from the Participant’s incapacity due to physical or mental illness) which
failure continued for a period of at least thirty (30) days after a written notice of demand for
substantial performance has been delivered to the Participant specifying the manner in which the
Participant has failed to substantially perform or (ii) willfully engaged in conduct which is
demonstrably and materially injurious to the Company, monetarily or otherwise; provided, however,
that no termination of the Participant’s employment shall be for Cause as set forth in clause (ii)
above until (A) there shall have been delivered to the Participant a copy of a written notice
setting forth that the Participant was guilty of the conduct set forth in clause (ii) above and
specifying the particulars thereof in detail and (B) the Participant shall have been provided an
opportunity to be heard by the Board of Directors (with the assistance of the Participant’s counsel
if the Participant so desires). No act, nor failure to act, on the Participant’s part shall be
considered “willful” unless the Participant has acted, or failed to act, with an absence of good
faith and without a reasonable belief that the Participant’s action or failure to act was in the
best interest of the Company. Notwithstanding anything contained in the Plan to the contrary, no
failure to perform by the Participant after notice of termination is given by the Participant shall
constitute Cause.

2.5 Change in Control

     As used in the Plan, a Change in Control shall be deemed to occur (i) if any person (as such
term is used in Sections 13(d) and 14(d)(2) of the Exchange Act) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the
Company representing twenty percent (20%) or more of the combined voting power of the Company’s
then outstanding securities, (ii) upon the first purchase of the Common Stock pursuant to a tender
or exchange offer (other than a tender or exchange offer made by the Company), (iii) upon the
approval by the Company’s stockholders of a merger or consolidation, a sale or disposition of all
or substantially all of the Company’s assets or a plan of liquidation or dissolution of the
Company, or (iv) if, during any period of two (2) consecutive years, individuals who at the
beginning of such period constitute the Board of Directors cease for any reason to constitute at
least a majority thereof, unless the election or nomination for the election by the Company’s
stockholders of each new director was approved by a vote of at least two-thirds (2/3) of the
directors then still in office who were directors at the beginning of the period. Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur if the Company either merges or
consolidates with or into another company or sells or disposes of all or substantially all of its
assets to another company, if such merger, consolidation, sale or disposition is in connection with
a corporate restructuring wherein the stockholders of the Company immediately before such merger,
consolidation, sale or disposition own, directly or indirectly, immediately following such merger,
consolidation, sale or disposition at least eighty percent (80%) of the combined voting power of
all outstanding classes of securities of the company resulting from such merger or consolidation,
or to which the Company sells or disposes of its assets, in substantially the same proportion as
their ownership in the Company immediately before such merger, consolidation, sale or disposition.

			
	 	 	 
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	1999 Omnibus Incentive Compensation Plan	 	 

 

 

2.6 Code

     The Internal Revenue Code of 1986, as amended and in effect from time to time, and the
temporary or final regulations of the Secretary of the U.S. Treasury adopted pursuant to the Code.

2.7 Common Stock

     The Common Stock of the Company, $3 par value per share, or such other class of shares or
other securities as may be applicable pursuant to the provisions of Section 5.

2.8 Exchange Act

     The Securities Exchange Act of 1934, as amended.

2.9 Fair Market Value

     Unless otherwise provided by the Plan Administrator prior to the date of a Change in Control
as applied to a specific date, Fair Market Value shall be deemed to be the mean between the highest
and lowest quoted selling prices at which Common Stock is sold on such date as reported in the
NYSE-Composite Transactions by The Wall Street Journal for such date, or if no Common Stock was
traded on such date, on the next preceding day on which Common Stock was so traded.
Notwithstanding the foregoing, upon the exercise,

     (a) during the thirty (30) day period following a Change in Control, of a limited
stock appreciation right or stock appreciation right granted in connection with a
Nonqualified Option more than six (6) months prior to a Change in Control, or

     (b) during the seven (7) month period following a Change in Control, of a limited
stock appreciation right or of a stock appreciation right granted in connection with a
Nonqualified Option less than six (6) months prior to a Change in Control,

on or after a Change in Control, Fair Market Value on the date of exercise shall be deemed
to be the greater of (i) the highest price per share of Common Stock as reported in the
NYSE-Composite Transactions by The Wall Street Journal during the sixty (60) day period
ending on the day preceding the date of exercise of the stock appreciation right or limited
stock appreciation right, as the case may be, and (ii) if the Change in Control is one
described in clause (ii) or (iii) of Section 2.5, the highest price per share paid for
Common Stock in connection with such Change in Control.

			
	 	 	 
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	1999 Omnibus Incentive Compensation Plan	 	 

 

 

2.10 Good Reason

     For purposes of the Plan, a Participant’s termination of employment for Good Reason, following
a Change in Control, shall mean the occurrence of any of the following events or conditions:

     (a) a change in the Participant’s status, title, position or responsibilities
(including reporting responsibilities) which, in the Participant’s reasonable judgment,
represents a substantial reduction of the status, title, position or responsibilities as in
effect immediately prior thereto; the assignment to the Participant of any duties or
responsibilities which, in the Participant’s reasonable judgment, are inconsistent with
such status, title, position or responsibilities; or any removal of the Participant from or
failure to reappoint or reelect the Participant to any of such positions, except in
connection with the termination of the Participant’s employment for Cause, for Permanent
Disability or as a result of his or her death, or by the Participant other than for Good
Reason;

     (b) a reduction in the Participant’s annual base salary;

     (c) the Company’s requiring the Participant (without the consent of the Participant)
to be based at any place outside a thirty-five (35) mile radius of his or her place of
employment prior to a Change in Control, except for reasonably required travel on the
Company’s business which is not materially greater than such travel requirements prior to
the Change in Control;

     (d) the failure by the Company to (i) continue in effect any material compensation or
benefit plan in which the Participant was participating at the time of the Change in
Control, including, but not limited to, the Plan, the El Paso Energy Corporation Pension
Plan, the El Paso Energy Corporation Supplemental Benefits Plan, the El Paso Energy
Corporation Deferred Compensation Plan and the El Paso Energy Corporation Retirement
Savings Plan, with any amendments and restatements of such plans (or substantially similar
successor plans) made prior to such Change in Control; or (ii) provide the Participant with
compensation and benefits at least equal (in terms of benefit levels and/or reward
opportunities) to those provided for under each employee benefit plan, program and practice
as in effect immediately prior to the Change in Control (or as in effect following the
Change in Control, if greater);

     (e) any material breach by the Company of any provision of the Plan; or

     (f) any purported termination of the Participant’s employment for Cause by the Company
which does not otherwise comply with the terms of the Plan.

			
	 	 	 
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	1999 Omnibus Incentive Compensation Plan	 	 

 

 

2.11 Incentive Award

     A percentage of base salary, fixed dollar amount or other measure of compensation for which
Participants are eligible to receive, in cash and/or shares of Restricted Stock, at the end of a
Performance Period if certain Performance Goals are achieved.

2.12 Incentive Stock Option

     An option intended to meet the requirements of an Incentive Stock Option as defined in Section
422 of the Code, as in effect at the time of grant of such option, or any statutory provision that
may hereafter replace such Section.

2.13 Management Committee

     A committee consisting of the Chief Executive Officer and such other senior officers as the
Chief Executive Officer shall designate.

2.14 Maximum Annual Employee Grant

     The Maximum Annual Employee Grant set forth in Section 5.4.

2.15 Nonqualified Option

     An option which is not intended to meet the requirements of an Incentive Stock Option as
defined in Section 422 of the Code.

2.16 Option Price

     The price per share of Common Stock at which an option is exercisable.

2.17 Participant

     An eligible employee to whom an option, limited stock appreciation right, stock appreciation
right, Restricted Stock, Incentive Award or Performance Unit is granted under the Plan as set forth
in Section 4.

2.18 Performance Cycle

     That period commencing with January 1 of each year in which the grant of a Performance Unit is
made and ending on December 31 of the third succeeding year, or such other time period as the Plan
Administrator may determine. The Plan Administrator, it its discretion, may initiate an
overlapping Performance Cycle that begins before an existing Performance Cycle has ended.

			
	 	 	 
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2.19 Performance Goals

     The Plan Administrator shall establish one or more performance goals (“Performance Goals”) for
each Performance Period in writing. Such Performance Goals shall be set no later than the
commencement of the applicable Performance Period, or such later date as may be permitted with
respect to “performance-based” compensation under Section 162(m) of the Code, and shall establish
the amount of any Incentive award to be granted to each Participant, subject to Section 5.4 below.

     Each Performance Goal selected for a particular Performance Period shall be any one or more of
the following, either individually, alternatively or in any combination, applied to either the
Company as a whole or to a Subsidiary or business unit, either individually, alternatively or in
any combination, and measured either annually or cumulatively over a period of years, on an
absolute basis or relative to the pre-established target, to previous years’ results or to a
designated comparison group, in each case as specified by the Plan Administrator: Total
Shareholder Return, operating income, pre-tax profit, earnings per share, cash flow, return on
capital, return on equity, return on net assets, net income, debt reduction, safety, return on
investment, revenues, or Common Stock price. The foregoing terms shall have the same meaning as
used in the Company’s financial statements, or if the terms are not used in the Company’s financial
statements, they shall have the meaning generally applied pursuant to general accepted accounting
principles, or as used in the industry, as applicable. The Plan Administrator may appropriately
adjust any evaluation of performance under a Performance Goal to exclude any of the following
events that occurs during a Performance Period: (i) asset write-downs, (ii) litigation or claim
judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other
such laws or provisions affecting reported results, (iv) accruals for reorganization and
restructuring programs, and (v) extraordinary non-recurring items as described in Accounting
Principles Board Opinion No. 30 and/or in management’s discussion and analysis of financial
condition and results of operations appearing in the Company’s annual report to stockholders for
the applicable year.

2.20 Performance Peer Group

     Those publicly held companies selected by the Plan Administrator prior to the commencement of
a Performance Period, or such later date as may be permitted under Section 162(m) of the Code,
consistent with maintaining the status of Performance Units as “performance-based compensation,” to
form a comparative performance group in applying Section 9.4.

2.21 Performance Period

     That period of time during which Performance Goals are measured to determine the vesting or
granting of options, limited stock appreciation rights, stock appreciation rights, Restricted
Stock, Performance Units or Incentive Awards, as the Plan Administrator may determine.

			
	 	 	 
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2.22 Performance Ranking Position

     The relative placement of the Company’s Total Shareholder Return measured against the Total
Shareholder Return of the other companies in the Performance Peer Group for which purposes rank
shall be determined by quartile, with a ranking in the first (1st) quartile (e.g., the Company’s
Total Shareholder Return is equal to or greater than the Total Shareholder Return of at least
seventy-five percent (75%) of the Performance Peer Group) corresponding to the highest quartile of
Total Shareholder Return.

2.23 Performance Unit or Units

     Units of long-term incentive compensation granted to a Participant with respect to a
particular Performance Cycle.

2.24 Permanent Disability or Permanently Disabled

     A Participant shall be deemed to have become Permanently Disabled for purposes of the Plan if
the Chief Executive Officer of the Company shall find upon the basis of medical evidence
satisfactory to the Chief Executive Officer that the Participant is totally disabled, whether due
to physical or mental condition, so as to be prevented from engaging in further employment by the
Company or any of its Subsidiaries, and that such disability will be permanent and continuous
during the remainder of the Participant’s life; provided, that with respect to Section 16 Insiders
such determination shall be made by the Plan Administrator.

2.25 Plan Administrator

     The Board of Directors or the committee appointed and/or authorized pursuant to Section 3 to
administer the Plan.

2.26 Restricted Stock

     Common Stock granted under the Plan that is subject to the requirements of Section 10 and such
other restrictions as the Plan Administrator deems appropriate. References to Restricted Stock in
this Plan shall include Performance Restricted Stock (as defined in Section 5.2) unless the context
otherwise requires.

2.27 Rule 16b-3

     Rule 16b-3 of the General Rules and Regulations under the Exchange Act.

			
	 	 	 
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2.28 Section 16 Insider

     Any person who is selected by the Plan Administrator to receive options, limited stock
appreciation rights, stock appreciation rights, Restricted Stock, Incentive Award and/or
Performance Units pursuant to the Plan and who is subject to the requirements of Section 16 of the
Exchange Act, and the rules and regulations promulgated thereunder.

2.29 Section 162(m)

     Section 162(m) of the Code, and regulations promulgated thereunder.

2.30 Subsidiary

     An entity that is designated by the Plan Administrator as a subsidiary for purposes of the
Plan and that is a corporation, partnership, joint venture, limited liability company, limited
liability partnership, or other entity, in which the Company owns directly or indirectly, fifty
percent (50%) or more of the voting power or profit interests, or as to which the Company or one of
its affiliates serve as general or managing partner or in a similar capacity. Notwithstanding the
foregoing, for purposes of options intended to qualify as incentive stock options, the term
“Subsidiary” shall mean a corporation (or other entity treated as a corporation for tax purposes)
in which the Company directly or indirectly holds more than fifty percent (50%) of the voting
power.

2.31 Total Shareholder Return

     The sum of (i) the appreciation or depreciation in the price of a share of a company’s common
stock, and (ii) the dividends and other distributions paid during the applicable Performance Cycle,
expressed as a percentage basis of the Fair Market Value of such share on the first day of the
applicable Performance Cycle, as calculated in a manner determined by the Plan Administrator.

2.32 Valuation Date

     The date for determining the Adjusted Value of vested Units that will be paid or credited to
the Participant or Beneficiary in accordance with Section 9.5 or 9.6. The Valuation Date shall
occur on the last day of the applicable Performance Cycle, or such other time as provided in this
Plan, or as the Plan Administrator may select. The Valuation Date for each Performance Cycle shall
be set forth in the grant of Performance Units and shall be established no later than the date on
which the Performance Goals for a particular Performance Cycle are selected, except as otherwise
specifically provided herein.

			
	 	 	 
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SECTION 3 ADMINISTRATION

     3.1 With respect to awards made under the Plan to Section 16 Insiders, the Plan shall be
administered by the Board of Directors or Compensation Committee of the Board of Directors, which
shall be constituted at all times so as to meet the non-employee director standards of Rule 16b-3
and the outside director requirements of Section 162(m), so long as any of the Company’s equity
securities are registered pursuant to Section 12(b) or 12(g) of the Exchange Act. Subject to the
Board of Directors, and as may be required by the foregoing sentence, the Plan shall be
administered by the Management Committee.

     No member of the Board of Directors or the Plan Administrator shall vote with respect directly
to the granting of options, limited stock appreciation rights, stock appreciation rights,
Restricted Stock, Incentive Awards and/or Performance Units hereunder to himself or herself, as the
case may be, and, if state corporate law does not permit a committee to grant options, limited
stock appreciation rights, stock appreciation rights, Restricted Stock, Incentive Awards and
Performance Units to directors, then any option, limited stock appreciation right, stock
appreciation right, Restricted Stock, Incentive Award or Performance Unit granted under the Plan to
a director for his or her services as such shall be approved by the full Board of Directors.

     3.2 Except for the terms and conditions explicitly set forth in the Plan, the Plan
Administrator shall have sole authority to construe and interpret the Plan, to establish, amend and
rescind rules and regulations relating to the Plan, to select persons eligible to participate in
the Plan, to grant options, limited stock appreciation rights, stock appreciation rights,
Restricted Stock, Incentive Awards and Performance Units thereunder, to administer the Plan, to
make recommendations to the Board of Directors, and to take all such steps and make all such
determinations in connection with the Plan and the options, limited stock appreciation rights,
stock appreciation rights, Restricted Stock, Incentive Awards and Performance Units granted
thereunder as it may deem necessary or advisable, which determination shall be final and binding
upon all Participants, so long as such interpretation and construction with respect to Incentive
Stock Options corresponds to any applicable requirements of Section 422 of the Code. The Plan
Administrator shall cause the Company at its expense to take any action related to the Plan which
may be necessary to comply with the provisions of any federal or state law or any regulations
issued thereunder, which the Plan Administrator determines are intended to be complied with.

     3.3 Each member of any committee acting as Plan Administrator, while serving as such, shall be
considered to be acting in his or her capacity as a director of the Company. Members of the Board
of Directors and members of any committee acting under the Plan shall be fully protected in relying
in good faith upon the advice of counsel and shall incur no liability except for gross negligence
or willful misconduct in the performance of their duties.

			
	 	 	 
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SECTION 4 ELIGIBILITY

     To be eligible for selection by the Plan Administrator to participate in the Plan, an
individual must be an officer or key management employee of the Company, or of any Subsidiary, as
of the date on which the Plan Administrator grants to such individual an option, limited Stock
appreciation right, stock appreciation right, Restricted Stock, Incentive Award or Performance Unit
or a person who, in the judgment of the Plan Administrator, holds a position of responsibility and
is able to contribute substantially to the Company’s continued success. Members of the Board of
Directors of the Company who are full-time salaried officers shall be eligible to participate.
Members of the Board of Directors who are not employees are not eligible to participate in this
Plan.

SECTION 5 SHARES AND UNITS AVAILABLE FOR THE PLAN

     5.1 Subject to Section 5.5, the maximum number of shares that may be issued upon settlement of
Incentive Awards or Performance Units and exercise of options, limited stock appreciation rights,
stock appreciation rights and Restricted Stock granted under the Plan is six million (6,000,000)
shares of Common Stock, from shares held in the Company’s treasury or out of authorized but
unissued shares of the Company, or partly out of each, as shall be determined by the Board of
Directors. For purposes of Section 5.1, the aggregate number of shares of Common Stock issued
under this Plan at any time shall equal only the number of shares actually issued upon exercise or
settlement of options, limited stock appreciation rights, stock appreciation rights, Restricted
Stock, Incentive Awards and Performance Units and not returned to the Company upon cancellation,
expiration or forfeiture of any such award or delivered (either actually or by attestation) in
payment or satisfaction of the purchase price, exercise price or tax obligation of the award.

     5.2 Notwithstanding the foregoing, and subject to Section 5.5, the number of shares for which
Restricted Stock may be granted pursuant to Section 10 of the Plan may not exceed two million
(2,000,000) shares of Common Stock, including the granting or vesting of Restricted Stock that is
in compliance with the performance-based requirements of Section 162(m) (the “Performance
Restricted Stock”).

     5.3 Subject to Section 5.5, the number of Performance Units which may be granted under the
Plan is set at five hundred thousand (500,000) Units. Units that have been granted and are fully
vested or that still may become fully vested under the terms of the Plan shall reduce the number of
outstanding Units that are available for use in making future grants under the Plan.

     5.4 The maximum number of shares, as calculated in accordance with the provisions of Section
5.1, and maximum dollar amount with respect to which awards under this Plan may be granted to any
eligible employee in any one year shall not exceed: (a) one million (1,000,000) in the case of
options (and related limited stock appreciation

			
	 	 	 
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rights or stock appreciation rights) or issuable upon settlement of Performance Units; (b) one
million (1,000,000) in the case of shares of Restricted Stock (whether or not such Restricted Stock
is Performance Restricted Stock); and (c) five million dollars ($5,000,000) in cash, Restricted
Stock or a combination thereof, in the case of Incentive Awards. With respect to Performance
Units, the maximum Units granted to any eligible employee for any Performance Cycle shall not
exceed one hundred thousand (100,000) Performance Units. Collectively, the foregoing maximums
referred in this Section 5.5 shall be referred to as the “Maximum Annual Employee Grant.”

     5.5 In the event of a recapitalization, stock split, stock dividend, exchange of shares,
merger, reorganization, change in corporate structure or shares of the Company or similar event,
the Board of Directors, upon the recommendation of the Plan Administrator, may make appropriate
adjustments in the number of shares authorized for the Plan, the Maximum Annual Employee Grant and,
with respect to outstanding options, limited stock appreciation rights, stock appreciation rights,
and Restricted Stock, the Plan Administrator may make appropriate adjustments in the number of
shares and the Option Price, except that any such adjustments for purposes of Sections 5.4 and 6.3
shall be consistent with the requirements under Code Sections 162(m) and 422, respectively.

SECTION 6 STOCK OPTIONS

     6.1 Options may be granted to eligible employees in such number, and at such times during the
term of the Plan as the Plan Administrator shall determine, the Plan Administrator taking into
account the duties of the respective employees, their present and potential contributions to the
success of the Company, and such other factors as the Plan Administrator shall deem relevant in
accomplishing the purposes of the Plan. The granting of an option shall take place when the Plan
Administrator by resolution, written consent or other appropriate action determines to grant such
an option to a particular Participant at a particular price. Each option shall be evidenced by a
written instrument delivered by or on behalf of the Company containing provisions not inconsistent
with the Plan, which may (but need not) require the Participant’s signature.

     6.2 An option granted under the Plan may be either an Incentive Stock Option or a Nonqualified
Option.

     6.3 Each provision of the Plan and each Incentive Stock Option granted thereunder shall be
construed so that each such option shall qualify as an Incentive Stock Option, and any provision
thereof that cannot be so construed shall be disregarded, unless the Participant agrees otherwise.
The total number of shares which may be purchased upon the exercise of Incentive Stock Options
granted under the Plan shall not exceed the total specified in Section 5.1. Incentive Stock
Options, in addition to complying with the other provisions of the Plan relating to options
generally, shall be subject to the following conditions:

			
	 	 	 
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     (a) Ten Percent (10%) Stockholders

     A Participant must not, immediately before an Incentive Stock Option is granted to him
or her, own stock representing more than ten percent (10%) of the voting power or value of
all classes of stock of the Company or of a Subsidiary. This requirement is waived if (i)
the Option Price of the Incentive Stock Option to be granted is at least one hundred ten
percent (110%) of the Fair Market Value of the stock subject to the option, determined at
the time the option is granted, and (ii) the option is not exercisable more than five (5)
years from the date the option is granted.

     (b) Annual Limitation

     To the extent that the aggregate Fair Market Value (determined at the time of the
grant of the option) of the stock with respect to which Incentive Stock Options are
exercisable for the first time by the Participant during any calendar year exceeds One
Hundred Thousand Dollars ($100,000), such options shall be treated as Nonqualified Options.

     (c) Additional Terms

     Any other terms and conditions which the Plan Administrator determines, upon advice of
counsel, must be imposed for the option to be an Incentive Stock Option.

     6.4 Except as otherwise provided in Section 6.3, all Incentive Stock Options and Nonqualified
Options under the Plan shall be granted subject to the following terms and conditions:

     (a) Option Price

     The Option Price shall be determined by the Plan Administrator, but shall not be less
than one hundred percent (100%) of the Fair Market Value of the Common Stock on the date
the option is granted.

     (b) Duration of Options

     Options shall be exercisable at such time and under such conditions as set forth in
the option grant, but in no event shall any Incentive Stock Option be exercisable
subsequent to the day before the tenth anniversary of the date on which the option is
granted, nor shall any other option be exercisable later than the tenth anniversary of the
date of its grant.

			
	 	 	 
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     (c) Exercise of Options

     Subject to Section 6.4(j), a Participant may not exercise an option until the
Participant has completed one (1) year of continuous employment with the Company or any of
its Subsidiaries from and including the date on which the option is granted, or such longer
period as the Plan Administrator may determine in a particular case. This requirement is
waived in the event of death, Permanent Disability of a Participant or a Change in Control
before such period of continuous employment is completed and may be waived or modified in
the agreement evidencing the option or by resolution adopted at any time by the Plan
Administrator. Thereafter, shares of Common Stock covered by an option may be purchased at
one time or in such installments over the balance of the option period as may be provided
in the option grant. Any shares not purchased on the applicable installment date may be
purchased thereafter at any time prior to the final expiration of the option. To the
extent that the right to purchase shares has accrued thereunder, options may be exercised
from time to time by written notice to the Company setting forth the number of shares with
respect to which the option is being exercised.

     (d) Payment

     The purchase price of shares purchased under options shall be paid in full to the
Company upon the exercise of the option by delivery of consideration equal to the product
of the Option Price and the number of shares purchased (the “Purchase Price”). Such
consideration may be either (i) in cash or (ii) at the discretion of the Plan
Administrator, in Common Stock already owned by the Participant for at least six (6)
months, or any combination of cash and Common Stock. The Fair Market Value of such Common
Stock as delivered shall be valued as of the day prior to delivery. The Plan Administrator
can determine that additional forms of payment will be permitted. To the extent permitted
by the Plan Administrator and applicable laws and regulations (including, but not limited
to, federal tax and securities laws, regulations and state corporate law), an option may
also be exercised in a “cashless” exercise by delivery of a properly executed exercise
notice together with irrevocable instructions to a broker to promptly deliver to the
Company the amount of sale or loan proceeds to pay the Purchase Price. A Participant shall
have none of the rights of a stockholder until the shares of Common Stock are issued to the
Participant.

     If specifically authorized in the option grant, a Participant may elect to pay all or
a portion of the Purchase Price by having shares of Common Stock with a Fair Market Value
equal to all or a portion of the Purchase Price be withheld from the shares issuable to the
Participant upon the exercise of the option; provided that such shall be permitted of a
Participant who is a Section 16 Insider only if approved in advance by the Board of
Directors or the Compensation Committee, if required by Section 16, and rules promulgated
thereunder, of the Exchange Act.

			
	 	 	 
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The Fair Market Value of such Common Stock as is withheld shall be determined as of the
same day as the exercise of the option.

     Notwithstanding any other provision in this Plan to the contrary and unless the Plan
Administrator shall otherwise determine, in the event of a “cashless” exercise, and for
that purpose only under this Plan, a Participant’s compensation shall be equal to the
difference between the actual sales price received for the underlying Common Stock and the
Option Price. For all other purposes under this Plan, the Fair Market Value shall be the
value against which compensation is determined.

     (e) Restrictions

     The Plan Administrator shall determine and reflect in the option grant, with respect
to each option, the nature and extent of the restrictions, if any, to be imposed on the shares of Common Stock which may be purchased thereunder, including, but not limited to,
restrictions on the transferability of such shares acquired through the exercise of such
options for such periods as the Plan Administrator may determine and, further, that in the
event a Participant’s employment by the Company, or a Subsidiary, terminates during the
period in which such shares are nontransferable, the Participant shall be required to sell
such shares back to the Company at such prices as the Plan Administrator may specify in the
option. In addition, the Plan Administrator may require that a Participant who wants to
effectuate a “cashless” exercise of options be required to sell the shares of Common Stock
acquired in the associated exercise to the Company, or in the open market through the use
of a broker selected by the Company, at such price and on such terms as the Plan
Administrator may determine at the time of grant, or otherwise.

     (f ) Nontransferability of Options

     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 by the applicable laws of descent and distribution. Notwithstanding
the foregoing and only as provided by the Plan Administrator or the Company, as applicable,
Nonqualified Options may be transferred to a Participant’s immediate family members,
directly or indirectly or by means of a trust, corporate entity or partnership (a person
who thus acquires this option by such transfer, a “Permitted Transferee”). A transfer of
an option may only be effected by the Company at the request of the Participant and shall
become effective upon the Permitted Transferee agreeing to such terms as the Plan
Administrator may require and only when recorded in the Company’s record of outstanding
options. In the event an option is transferred as contemplated hereby, the option may not
be subsequently transferred by the Permitted

			
	 	 	 
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Transferee except a transfer back to the Participant or by will or the laws of descent and
distribution. A transferred option may be exercised by a Permitted Transferee to the same
extent as, and subject to the same terms and conditions as, the Participant (except as
otherwise provided herein), as if no transfer had taken place. As used herein, “immediate
family” shall mean, with respect to any person, such person’s child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, sister-in-law, and shall include adoptive relationships.
In the event of exercise of a transferred option by a Permitted Transferee, any amounts due
to (or to be withheld by) the Company upon exercise of the option shall be delivered by (or
withheld from amounts due to) the Participant, the Participant’s estate or the Permitted
Transferee, in the reasonable discretion of the Company.

     In addition, to the extent permitted by applicable law and Rule 16b-3, the Plan
Administrator may permit a recipient of a Nonqualified Option to designate in writing
during the Participant’s lifetime a Beneficiary to receive and exercise the Participant’s
Nonqualified Options in the event of such Participant’s death (as provided in Section
6.4(i)). A designation by a Participant under the Company’s Omnibus Compensation Plan
dated as of January 1, 1992, as amended, or the Company’s 1995 Omnibus Compensation Plan
effective as of January 13, 1995, as amended and restated (the “Predecessor Plans”), shall
remain in effect under the Plan for any options unless such designation is revoked or
changed under the Plan. Except as otherwise provided for herein, if any Participant
attempts to transfer, assign, pledge, hypothecate or otherwise dispose of any option under
the Plan or of any right or privilege conferred thereby, contrary to the provisions of the
Plan or such option, or suffers the sale or levy or any attachment or similar process upon
the rights and privileges conferred hereby, all affected options held by such Participant
shall be immediately forfeited.

     (g) Purchase for Investment

     The Plan Administrator shall have the right to require that each Participant or other
person who shall exercise an option under the Plan, and each person into whose name shares
of Common Stock shall be issued pursuant to the exercise of an option, represent and agree
that any and all shares of Common Stock purchased pursuant to such option are being
purchased for investment only and not with a view to the distribution or resale thereof and
that such shares will not be sold except in accordance with such restrictions or
limitations as may be set forth in the option or by the Plan Administrator. This Section
6.4(g) shall be inoperative during any period of time when the Company has obtained all
necessary or advisable approvals from governmental agencies and has completed all necessary
or advisable registrations or other qualifications of shares of Common Stock as to which
options may from time to time be granted as contemplated in Section 12.

			
	 	 	 
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     (h) Termination of Employment

     Upon the termination of a Participant’s employment for any reason other than death or
Permanent Disability, the Participant’s option shall be exercisable only to the extent that
it was then exercisable and, unless the term of the options expires sooner, such options
shall expire according to the following schedule; provided, that the Plan Administrator may
at any time determine in a particular case that specific limitations and restrictions under
the Plan shall not apply:

     (i) Retirement

               The option shall expire, unless exercised, thirty-six (36) months after the
Participant’s retirement from the Company or any Subsidiary.

     (ii) Disability

          The option shall expire, unless exercised, thirty-six (36) months after the
Participant’s termination on account of Permanent Disability.

     (iii) Termination

          Subject to subparagraphs (iv) and (v) below, the option shall expire, unless
exercised, for a period not to exceed thirty-six (36) months, as specified in the
grant letter, after a Participant resigns or is terminated as an employee of the
Company or any of its Subsidiaries, unless the Chief Executive Officer of the
Company shall have determined in a specific case that the option should expire
sooner or should terminate when the Participant’s employment status ceases;
provided, however, that for Section 16 Insiders, such determination shall be made
by the Plan Administrator.

     (iv) Termination Following a Change in Control

          The option shall expire, unless exercised or expiring earlier in accordance
with its original terms, thirty-six (36) months after a Participant’s termination
of employment (other than a termination by the Company for Cause or a voluntary
termination by the Participant other than for Good Reason) following a Change in
Control, provided that said termination of employment occurs within two (2) years
following a Change in Control.

     (v) All Other Terminations

          Notwithstanding subparagraphs (iii) and (iv) above, the option shall expire
upon termination of employment for Cause and any option

			
	 	 	 
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intended to qualify as an Incentive Stock Option shall expire, unless exercised,
one year after the Participant’s termination of employment on account of disability
(as defined in Section 22(e)(3) of the Code) and shall expire three (3) months
after the Participant’s termination of employment other than on account of death,
Permanent Disability or termination for Cause.

     (i) Death of Participant

     Upon the death of a Participant, whether during the Participant’s period of employment
or during the thirty-six (36) month period referred to in Sections 6.4(h)(i), (ii) and
(iii), the option shall expire, unless the original term of the option expires sooner,
twelve (12) months after the date of the Participant’s death, unless the option is
exercised within such twelve (12) month period by the Participant’s Beneficiary, legal
representatives, estate or the person or persons to whom the deceased’s option rights shall
have passed by will or the laws of descent and distribution; provided, that the Plan
Administrator may determine in a particular case that specific limitations and restrictions
under the Plan shall not apply. Notwithstanding any other Plan provisions pertaining to
the times at which options may be exercised, no option shall continue to be exercisable,
pursuant to Section 6.4(h) or this Section 6.4(i), at a time that would violate the maximum
duration of Section 6.4(b).

     (j) Change in Control

     Notwithstanding other Plan provisions pertaining to the times at which options may be
exercised, all outstanding options, to the extent not then currently exercisable, shall
become exercisable in full upon the occurrence of a Change in Control. No option (whether
or not intended to be an Incentive Stock Option) shall continue to be exercisable, pursuant
to Sections 6.4(h) and 6.4(i), at a time that would violate the maximum duration of Section
6.4(b).

     (k) Deferral Election

     A Participant may elect irrevocably (at a time and in a manner determined by the Plan
Administrator or the Company, as appropriate) prior to exercising an option granted under
the Plan that issuance of shares of Common Stock upon exercise of such option and/or
associated stock appreciation right shall be deferred until a pre-specified date in the
future or until the Participant ceases to be employed by the Company or any of its
Subsidiaries, as elected by the Participant. After the exercise of any such option and
prior to the issuance of any deferred shares, the number of shares of Common Stock issuable
to the Participant shall be credited to the deferred stock account (or such other
account(s) as the management committee shall deem necessary and appropriate) under a
memorandum deferred account established pursuant the Company’s then-existing Deferred
Compensation Plan (as it may be further amended) (the “Deferred

			
	 	 	 
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Compensation Plan”), and any dividends or other distributions paid on the Common Stock
(or its equivalent) shall be deemed reinvested in additional shares of Common Stock (or its
equivalent) until all credited deferred shares shall become issuable pursuant to the
Participant’s election, unless the management committee of the Deferred Compensation Plan
shall otherwise determine.

SECTION 7 STOCK APPRECIATION RIGHTS

     7.1 The Plan Administrator may grant stock appreciation rights to Participants in connection
with any option granted under the Plan, either at the time of the grant of such option or at any
time thereafter during the term of the option. Such stock appreciation rights shall cover the same
number of shares covered by the options (or such lesser number of shares of Common Stock as the
Plan Administrator may determine) and shall, except as provided in Section 7.3, be subject to the
same terms and conditions as the related options and such further terms and conditions not
inconsistent with the Plan as shall from time to time be determined by the Plan Administrator.

     7.2 Each stock appreciation right shall entitle the holder of the related option to surrender
to the Company unexercised the related option, or any portion thereof, and to receive from the
Company in exchange therefor an amount equal to the excess of the Fair Market Value of one share of
Common Stock on the date the right is exercised over the Option Price per share times the number of
shares covered by the option, or portion thereof, which is surrendered. Payment shall be made in
shares of Common Stock valued at Fair Market Value as of the date the right is exercised, or in
cash, or partly in shares and partly in cash, at the discretion of the Plan Administrator;
provided, however, that payment shall be made solely in cash with respect to a stock appreciation
right which is exercised within seven (7) months following a Change in Control. Stock appreciation
rights may be exercised from time to time upon actual receipt by the Company of written notice
stating the number of shares of Common Stock with respect to which the stock appreciation right is
being exercised. The value of any fractional shares shall be paid in cash.

     7.3 Stock appreciation rights are subject to the following restrictions:

     (a) Each stock appreciation right shall be exercisable at such time or times as the
option to which it relates shall be exercisable, or at such other times as the Plan
Administrator may determine. In the event of death or Permanent Disability of a
Participant during employment but before the Participant has completed such period of
continuous employment, such stock appreciation right shall be exercisable; but only within
the period specified in the related option. In the event of a Change in Control, the
requirement that a Participant shall have completed a six (6) month period of continuous
employment is waived with respect to a Participant who is employed by the Company at the
time of the Change in Control but who, within the six (6) month period, voluntarily

			
	 	 	 
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terminates employment for Good Reason or is terminated by the Company other than for
Cause.

     (b) Except following a Change in Control, each request to exercise a stock
appreciation right shall be subject to approval or denial in whole or in part by the Plan
Administrator in its sole discretion. Denial or approval of such request shall not require
a subsequent request to be similarly treated by the Plan Administrator.

     (c) The right of a Participant to exercise a stock appreciation right shall be
canceled if and to the extent the related option is exercised. To the extent that a stock
appreciation right is exercised, the related option shall be deemed to have been
surrendered unexercised and canceled.

     (d) A holder of stock appreciation rights shall have none of the rights of a
stockholder until shares of Common Stock, if any, are issued to such holder pursuant to
such holder’s exercise of such rights.

     (e) The acquisition of Common Stock pursuant to the exercise of a stock appreciation
right shall be subject to the same restrictions as would apply to the acquisition of Common
Stock acquired upon exercise of the related option, as set forth in Section 6.4.

SECTION 8 LIMITED STOCK APPRECIATION RIGHTS

     8.1 The Plan Administrator may grant limited stock appreciation rights to Participants in
connection with any options granted under the Plan, either at the time of the grant of such option
or at any time thereafter during the term of the option. Such limited stock appreciation rights
shall cover the same number of shares covered by the options (or such lesser number of shares of
Common Stock as the Plan Administrator may determine) and shall, except as provided in Section 8.3,
be subject to the same terms and conditions as the related options and such further terms and
conditions not inconsistent with the Plan as shall from time to time be determined by the Plan
Administrator.

     8.2 Each limited stock appreciation right shall entitle the holder of the related option to
surrender to the Company the unexercised portion of the related option and to receive from the
Company in exchange therefor an amount in cash equal to the excess of the Fair Market Value of one
(1) share of Common Stock on the date the right is exercised over the Option Price per share times
the number of shares covered by the option, or portion thereof, which is surrendered.

			
	 	 	 
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     8.3 Limited stock appreciation rights are subject to the following restrictions:

     (a) Each limited stock appreciation right shall be exercisable in full for a period of
seven (7) months following the date of a Change in Control regardless of whether the holder
is employed by the Company or any of its Subsidiaries on the date the right is exercised.
Limited stock appreciation rights shall be exercisable only to the same extent and subject
to the same conditions as the options related thereto are exercisable, as provided in
Section 6.4(j).

     (b) The right of a Participant to exercise a limited stock appreciation right shall be
canceled if and to the extent the related option is exercised. To the extent that a
limited stock appreciation right is exercised, the related option shall be deemed to have
been surrendered unexercised and canceled.

SECTION 9 PERFORMANCE UNITS

9.1 Grants of Units

     Subject to the Maximum Annual Employee Grant, Units may be granted to Participants in such
number as the Plan Administrator shall determine, taking into account the duties of the respective
Participants, their present and potential contributions to the success of the Company or its
Subsidiaries, their compensation provided by other incentive plans, their salaries, and such other
factors as the Plan Administrator shall deem appropriate. Normally, Units will be granted only at
the beginning of each Performance Cycle except in cases where a prorated grant may be made in
mid-cycle to a newly eligible Participant or a Participant whose job responsibilities have
significantly changed during the cycle.

9.2 Notice to Participants

     The Plan Administrator shall notify each Participant in writing of the grant of Units to the
Participant. Such notice shall set forth the Total Shareholder Return requirements, vesting
schedule and other terms and conditions applicable to such Units, and may (but need not) require
the Participant’s signature.

9.3 Vesting

     (a) Vesting Schedule

     The Plan Administrator shall adopt a vesting schedule for each year of a Performance
Cycle. Vesting of Units for each year may (i) occur automatically after a Participant has
completed the specified period of continuous employment with the Company or any of its
Subsidiaries from the date of grant of such Units, (ii) be contingent upon attaining
certain levels of Total Shareholder Return for the

			
	 	 	 
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year in which the Units are eligible to vest, or (iii) occur at such other times or subject
to such other criteria as the Plan Administrator may determine. The Plan Administrator
may, in its discretion, alter the vesting guidelines in the event of unusual circumstances
provided that to the extent applicable any such discretion shall be exercised in a manner
consistent with Section 162(m). Vesting of Units with respect to Participants who begin
participation or receive an additional grant of Units during the Performance Cycle will be
determined by the Plan Administrator at the time of grant.

(b) Change in Control

          Notwithstanding the foregoing vesting provisions, upon a Change in Control all
unvested Units shall become fully vested on a pro rata basis measured in the next higher
whole year between (i) the date of grant and (ii) the date of a Change in Control.

9.4 Valuation of Performance Units

     All Performance Units granted to Participants under the Plan shall be valued as follows:

(a) Initial and Continuing Value

          Each Performance Unit shall have an initial value of one hundred dollars ($100) as of
the date of the grant of Performance Units. Except where the Adjusted Value of Performance
Units is determined as provided under Section 9.4(b), each Performance Unit shall continue
to have a dollar value of one hundred dollars ($100) on each date subsequent to the date of
grant of the Performance Unit.

(b) Adjusted Value

          The determination of the Adjusted Value of Performance Units for benefit payments
under Sections 9.5(b)(i) and 9.5(b)(ii) as of any relevant Valuation Date shall be made
based on the Company’s Performance Ranking Position for the applicable Performance Cycle
compared to the Performance Ranking Position of the Performance Peer Group, based on the
following schedule:

	 	 	 	 	 
	Company’s Performance	 	Adjusted
	Ranking Position	 	Value
	1st Quartile
	 	$	150	 
	2nd Quartile
	 	$	100	 
	3rd Quartile
	 	$	50	 
	4th Quartile
	 	$	0	 

			
	 	 	 
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If any company which is a member of the Performance Peer Group that (i) ceases to exist by
reason of a liquidation, merger or other transaction; (ii) undergoes a significant
alternation in size, through recapitalization or otherwise, such that its total market
capitalization as determined from its published financial statements is more than fifty
(50%) greater or less than its total market capitalization as of the grant date for the
applicable Performance Cycle; or (iii) otherwise changes its line of business significantly
to make it inappropriate to use such company in comparison, and if such event(s) occurs
after the time the Plan Administrator can alter the Performance Peer Group under Section
2.20 above, then such company shall be considered to remain in the Performance Peer Group,
and to have achieved a Total Shareholder Return less than the Company’s Total Shareholder
Return without regard to any actual Total Shareholder Return actually achieved by such
company, provided, however, that the Plan Administrator shall have the authority to reduce
the Adjusted Value of Performance Units in such event if it determines that such reduction
is appropriate in view of the Company’s performance relative to those companies in the
Performance Peer Group and not described in clauses (i), (ii) or (iii), above.

9.5 Entitlement to Payment

(a) Performance Certification

          The Plan Administrator shall certify in writing, prior to payment of the Performance
Units pursuant to this Section 9.5, the Company’s Performance Ranking Position. In no
event will an award be payable under this Section 9 if the Company’s Performance Ranking
Position is in the fourth (4th) quartile.

(b) Eligibility for Benefit Payments

          Benefit payments with respect to vested Performance Units shall be paid under the
following circumstances:

          (i) Primary Benefit Payment

          Upon the expiration of each Performance Cycle, all uncanceled Performance
Units granted with respect to such Performance Cycle shall vest and benefit
payments with respect to such Performance Units shall become payable. A
Participant who has remained an employee continuously from the date of the grant of
the Performance Units for a Performance Cycle through the last day of such
Performance Cycle shall be eligible to receive a benefit payment equal to the
Adjusted Value, as provided for in Section 9.4(b), of the Performance Units (the
“Primary Benefit”) with respect to and as of the close of such Performance Cycle.
The Valuation Date for determining such Adjusted Value shall be

			
	 	 	 
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established by the Plan Administrator at the time the Performance Units are
granted. The amount of any benefit payment payable with respect to Performance
Units shall be reduced by the amount of any interim benefit payments made pursuant
to Section 9.5(b)(ii) with respect to such Performance Units. If the interim
benefit payments exceed the Primary Benefit, no payment shall be made.

          (ii) Interim Benefit Payments

          The Plan Administrator may in its sole discretion provide for an interim
benefit payment to be made to a Participant with respect to Performance Units
granted for any particular Performance Cycle. The right to any interim benefit
payment shall be set forth in the grant of Performance Units to a Participant, or
at such other time as the Plan Administrator shall determine, and must establish
the terms and conditions of such interim benefit payment (including the Company’s
Total Shareholder Return which must be attained during such Performance Period).
An interim benefit payment may be provided for after the second year of a
Performance Cycle. The interim benefit payment shall be based upon the Adjusted
Value of the Performance Units, as provided for in Section 9.4(b) for the period up
to the date of the interim payment valuation, and the amount of any such payment
shall not exceed fifty percent (50%) of such Adjusted Value for the Performance
Units which are vested at the end of the second year; provided, however, that such
interim payment will be made only if the Company’s Performance Ranking Position is
in the first (1st) or second (2nd) quartile. The Valuation Date for determining
such Adjusted Value shall be set forth in the grant of Performance Units, or at
such other time as determined by the Plan Administrator. The Performance Units
which are valued for the interim benefit payment shall also be valued in accordance
with Section 9.5(b)(i) or Section 9.7 if applicable, to determine what, if any,
additional value the Participant may be entitled to. Interim benefit payments may
be made to those Participants who have remained employees continuously from the
date of the grant of the applicable Performance Units until the date of the interim
benefit payment relating to such Performance Units. The amount of any benefit
payment payable with respect to Performance Units pursuant to Sections 9.5(b)(i)
and 9.5(d) shall be reduced by the amount of any interim benefit payment made
pursuant to this Section 9.5(b)(ii), but not below zero.

     (c) Form of Payment

          A Participant or a Participant’s Beneficiary shall be entitled to receive from the
Company a benefit payment as provided pursuant to Sections 9.5(b)(i) or 9.5(b)(ii), as
applicable, equal to the product of the Adjusted Value and the

			
	 	 	 
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number of vested Units of a Participant. Such payment shall be made as soon as practicable
following the applicable Valuation Date in accordance with this Section 9.5(c).

     Except as provided in Sections 9.5(d) and 9.7 (or unless the Plan Administrator
otherwise determines at any time that the form of payment should be changed), each benefit
payment made to a Participant pursuant to this Section 9, shall be made as follows:

(i) Participants employed by the Company holding the position of Chairman of the
Board, President or Chief Executive Officer and Participants employed by Company
Subsidiaries holding equivalent positions, but not necessarily the same title,
shall receive their Performance Unit payout as follows:

(A) 50% (fifty percent) in cash and

(B) 50% (fifty percent) in Common Stock.

(ii) Participants employed by the Company holding the position of Vice Chairman of
the Board, Chief Operating Officer, or Executive Vice President and Participants
employed by Company Subsidiaries holding equivalent positions, but not necessarily
the same title, shall receive their Performance Unit payout as follows:

(A) 60% (sixty percent) in cash and

(B) 40% (forty percent) in Common Stock.

(iii) Participants employed by the Company holding the position of Senior Vice
President and Participants employed by Company Subsidiaries holding equivalent
positions, but not necessarily the same title, shall receive their Performance Unit
payout as follows:

(A) 75% (seventy-five percent) in cash and

(B) 25% (twenty-five percent) in Common Stock.

     (d) Retirement, Death, Disability or Termination of Employment

          Participants (or their Beneficiaries in the case of their deaths) who have retired,
died, become Permanently Disabled, or who have terminated their employment, prior to the
end of a Performance Cycle shall not be entitled to receive payment from the Company or its
Subsidiaries for any Units which were not vested as of the time such Participants ceased
active employment with the Company or its Subsidiaries. Notwithstanding Section 9.5(c),
such Participants (or their Beneficiaries in the case of their deaths) will be entitled to
receive a cash payment for vested Units in accordance with Section 9.5(b)(i). No payments
shall

			
	 	 	 
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be made to such Participants (or Beneficiaries) pursuant to Section 9.5(b)(ii). Unless the
Plan Administrator otherwise determines, a Participant who is terminated with Cause shall
receive no benefit under this Section 9.

9.6 Deferred Payment

     Prior to the time that Units first vest pursuant to Section 9.3, the Participant may, subject
to the consent of the Management Committee and in accordance with procedures that the Management
Committee has approved, elect to have all or a portion (subject to a $1,000 minimum) of the
lump-sum cash payment payable pursuant to Section 9.5(c) with respect to such vested Units deferred
according to the terms and conditions of the Company’s Deferred Compensation Plan.

9.7 Acceleration of Payment Due to Change In Control

     Upon a Change in Control, the current Performance Cycle shall immediately end and all vested
Units (including Units that vest pursuant to Section 9.3(b)) shall be paid in cash to Participants
based on a value of one hundred fifty dollars ($150) per Unit. This payment will be reduced to
reflect any interim benefit payments made in accordance with Section 9.5(b)(ii) and shall be made
(i) in a lump sum in cash that is in lieu of any otherwise applicable form and time of payment for
such Unites under the Plan and (ii) within ten (10) days after the Change in Control.

SECTION 10 RESTRICTED STOCK

     10.1 Subject to Sections 5.2 and 5.4, Restricted Stock (including Performance Restricted
Stock) may be granted to Participants in such number and at such times during the term of the Plan
as the Plan Administrator shall determine, the Plan Administrator taking into account the duties of
the respective Participants, their present and potential contributions to the success of the
Company, and such other factors as the Plan Administrator shall deem relevant in accomplishing the
purposes of the Plan. The granting of Restricted Stock shall take place when the Plan
Administrator by resolution, written consent or other appropriate action determines to grant such
Restricted Stock to a particular Participant. Each grant shall be evidenced by a written
instrument delivered by or on behalf of the Company containing provisions not inconsistent with the
Plan, which may (but need not) require the Participant’s signature. The Participant receiving a
grant of Restricted Stock shall be recorded as a stockholder of the Company. Each Participant who
receives a grant of Restricted Stock shall have all the rights of a stockholder with respect to
such shares (except as provided in the restrictions on transferability), including the right to
vote the shares and receive dividends and other distributions; provided, however, that no
Participant awarded Restricted Stock shall have any right as a stockholder with respect to any
shares subject to the Participant’s Restricted Stock grant prior to the date of issuance to the
Participant of a certificate or certificates, or the establishment of a book-entry account, for
such shares.

			
	 	 	 
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     10.2 Notwithstanding any other provision to the contrary in this Section 10, before
Performance Restricted Stock can be granted or vested, as applicable, the Plan Administrator shall:

     (a) Determine the Performance Goals, if any, applicable to the particular Performance
Period; and

     (b) Certify in writing that any such Performance Goals for a particular Performance Period
have been attained.

     10.3 A grant of Restricted Stock shall entitle a Participant to receive, on the date or dates
designated by the Plan Administrator, or, if later, upon payment to the Company of the par value of
the Common Stock, if required, in a manner determined by the Plan Administrator, the number of
shares of Common Stock selected by the Plan Administrator. The Plan Administrator may require,
under such terms and conditions as it deems appropriate or desirable, that the certificates for
Restricted Stock delivered under the Plan may be held in custody by a bank or other institution, or
that the Company may itself hold such shares in custody until the Restriction Period (as defined in
Section 10.4) expires or until restrictions thereon otherwise lapse, and may require, as a
condition of any issuance of Restricted Stock that the Participant shall have delivered a stock
power endorsed in blank relating to the shares of Restricted Stock.

     10.4 During a period of years following the date of grant, as determined by the Plan
Administrator, which shall in no event be less than one (1) year (the “Restriction Period”), the
Restricted Stock may not be sold, assigned, transferred, pledged, hypothecated or otherwise
encumbered or disposed of by the recipient, except in the event of death or termination of
employment on account of Permanent Disability, the transfer to the Company as provided under the
Plan, the Plan Administrator’s waiver or modification of such restrictions in the agreement
evidencing the grant of Restricted Stock, or by resolution of the Plan Administrator adopted at any
time.

     10.5 Except as provided in Sections 10.4, 10.6 or 10.7, if a Participant terminates employment
with the Company for any reason before the expiration of the Restriction Period, all shares of
Restricted Stock still subject to restriction shall be forfeited by the Participant to the Company.
In addition, in the event of any attempt by the Participant to sell, exchange, transfer, pledge or
otherwise dispose of shares of Restricted Stock in violation of the terms of the Plan without the
Company’s prior written consent, such shares shall be forfeited to the Company.

     10.6 The Restriction Period for any Participant shall be deemed to end and all restrictions on
shares of Restricted Stock shall lapse, upon the Participant’s death or termination of employment
on account of Permanent Disability or any termination of employment determined by the Plan
Administrator to end the Restriction Period.

			
	 	 	 
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     10.7 The Restriction Period for any Participant shall be deemed to end and all restrictions on
shares of Restricted Stock shall terminate immediately upon a Change in Control.

     10.8 When the restrictions imposed by Section 10.4 expire or otherwise lapse with respect to
one or more shares of Restricted Stock, the Company shall deliver to the Participant (or the
Participant’s legal representative, Beneficiary or heir) one (1) share of Common Stock for each
share of Restricted Stock.

     10.9 Subject to Section 10.3 (and Section 10.2 in the case of Performance Restricted Stock), a
Participant entitled to receive Restricted Stock under the Plan shall be issued a certificate, or
have a book-entry account established, for such shares. Such certificate, or book-entry 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 shares and shall be subject to
appropriate stop-transfer orders.

     10.10 Restricted Stock awarded to Participants pursuant to Section 11 in lieu of cash shall be
considered Performance Restricted Stock for purposes of the Plan.

     10.11 The Restriction Period for any Participant shall be deemed to end and all restrictions
on shares of Restricted Stock awarded pursuant to Sections 11.5(a)(ii), 11.5(b)(ii), and 11.6
(except for Restricted Stock awarded pursuant to Section 11.5(c)) shall lapse upon the
Participant’s death, retirement, Permanent Disability, or any other involuntary termination without
Cause. The Restriction Period shall be deemed to end and all restrictions on a Participant’s
shares of Restricted Stock awarded pursuant to Section 11.5(c) shall lapse on a pro rata basis
measured in years between (i) the amount of time which has elapsed between the Award Date and the
Participant’s death, retirement, Permanent Disability, or any other involuntary termination without
Cause and (ii) the Restriction Period for such shares. All shares of Restricted Stock for which
the Restriction Period has not lapsed as described above shall be forfeited to the Company.
Notwithstanding the foregoing, the Plan Administrator, or the Management Committee in the case of
Participants other than Section 16 Insiders, may determine that such Restriction Period should not
lapse or that the Restriction Period on additional shares of Restricted Stock should lapse.

     10.12 A Participant may elect irrevocably (at a time and in the manner determined by the Plan
Administrator or the Company, as appropriate), prior to vesting of Restricted Stock, that the
Participant relinquishes any and all rights in the shares of Restricted Stock in exchange for an
interest in the Deferred Compensation Plan, in which case receipt of such shares shall be deferred
until a pre-specified date in the future or until the Participant ceases to be employed by the
Company or any of its Subsidiaries, as elected by the Participant. At the time the restrictions
would have otherwise lapsed on the shares of Restricted Stock (as specified at the time of grant,
or otherwise if changed by the Plan Administrator), the number of shares of Common Stock issuable
to the Participant shall be credited to the deferred stock account (or such other account(s) as the

			
	 	 	 
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Management Committee shall deem necessary and appropriate) under a memorandum deferred account
established pursuant to the Deferred Compensation Plan, and any dividends or other distributions
paid on the Common Stock (or its equivalent) shall be deemed reinvested in additional shares of
Common Stock (or its equivalent) until all credited deferred shares shall become issuable pursuant
to the Participant’s election, unless the Management Committee of the Deferred Compensation Plan
shall otherwise determine.

SECTION 11 INCENTIVE AWARDS

11.1 Procedures for Incentive Awards

     Prior to the beginning of a particular Performance Period, or such other date as the Code may
allow, the Plan Administrator shall specify in writing:

	 	(a)	 	the Participants who shall be eligible to receive an Incentive Award for a
Performance Period,
	 
	 	(b)	 	the Performance Goals for such Performance Period, and
	 
	 	(c)	 	the maximum Incentive Award amount payable to each Participant if the
Performance Goals are met.

     Any Participant chosen to participate in under this Section 11 for a given Performance Period
shall receive the maximum Incentive Award amount if the designated Performance Goals are achieved,
subject to the discretion of the Plan Administrator to reduce such award, as described in Section
11.4.

11.2 Performance Goal Certification

     An Incentive Award shall become payable to the extent provided herein in the event that the
Plan Administrator certifies in writing prior to payment of the award that the Performance Goal or
Goals selected for a particular Performance Period has or have been attained. In no event will an
award be payable under this Plan if the threshold level of performance set for each Performance
Goal for the applicable Performance Period is not attained.

11.3 Maximum Incentive Award Payable

     The maximum Incentive Award payable under this Plan to any Participant for any Performance
Period shall be five million dollars ($5,000,000) in cash, Restricted Stock, or a combination of
cash and Restricted Stock.

			
	 	 	 
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11.4 Discretion to Reduce Awards; Participant’s Performance

     The Plan Administrator, in its sole and absolute discretion, may reduce the amount of any
Incentive Award otherwise payable to a Participant upon attainment of any Performance Goal for the
applicable Performance Period. A Participant’s individual performance must be satisfactory,
regardless of the Company’s performance and the attainment of Performance Goals, before he or she
may be granted an Incentive Award. In evaluating a Participant’s performance, the Plan
Administrator shall consider the Performance Goals of the Company and the Participant’s
responsibilities and accomplishments, and such other factors as it deems appropriate.

11.5 Required Payment of Incentive Awards

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

(a) Participants employed by the Company holding the position of Chairman of the Board,
President, Chief Executive Officer, Vice Chairman of the Board, Chief Operating Officer,
Executive Vice President, or Senior Vice President and Participants employed by Company
subsidiaries with equivalent positions thereto, but not necessarily the same titles, shall
receive their incentive award as follows:

     (i) 50% (fifty percent) in cash and

     (ii) 50% (fifty percent) in Restricted Stock.

(b) Participants employed by the Company holding the position of Vice President and
Participants employed by Company subsidiaries with an equivalent position thereto, but not
necessarily the same title, shall receive their incentive award as follows:

     (i) 75% (seventy-five percent) in cash and

     (ii) 25% (twenty-five percent) in Restricted Stock.

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

			
	 	 	 
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(d) Notwithstanding subsections (a) and (b) above, the Plan Administrator or Management
Committee, as appropriate, may determine that a Participant must receive a greater amount
of his or her award in Restricted Stock, up to and including the entire award in Restricted
Stock. (For purposes of the Plan, such required shares shall be treated as being awarded
pursuant to Section 11.5(a)(ii) or Section 11.5(b)(ii), as applicable.) In such event, a
Participant shall be entitled to the additional shares of Restricted Stock, awarded
pursuant to Section 11.5(c) above.

     The value of awards payable in Restricted Stock pursuant to this Section 11 shall be
calculated by using Fair Market Value.

11.6 Restricted Stock Election

     In lieu of receiving all or any portion of the cash in accordance with Sections 11.5(a)(i) or
11.5(b)(i), a Participant may elect to receive additional Restricted Stock with a value equal to
the portion of the incentive award which the Participant would otherwise have received in cash, but
has elected to receive in Restricted Stock (“Restricted Stock Election”). Participants must make
their Restricted Stock Election at such time and in such a manner as prescribed by the Management
Committee. If required by Rule 16b-3 promulgated under Section 16(b) of the Exchange Act, any
Restricted Stock Election made by a Participant who is a Section 16 Insider shall be made at least
six months prior to the Award Date, or at such other time as is allowed by Section 16(b) of the
Exchange Act. Each Participant who makes the Restricted Stock Election shall be entitled to the
additional Restricted Stock granted pursuant to Section 11.5(c) with respect to the amount of the
Participant’s Restricted Stock Election. Except as provided in Section 10, all shares of
Restricted Stock awarded pursuant to the Restricted Stock Election are subject to the same terms
and conditions as the Restricted Stock a Participant receives pursuant to Sections 11.5(a)(ii) or
11.5(b)(ii), as applicable.

11.7 Deferred Payment

     Each Participant may elect to have the payment of all or a portion of any Incentive Award made
pursuant to Sections 11.5(a)(i) or 11.5(b)(i), as applicable, for the year deferred according to
the terms and conditions of the Company’s Deferred Compensation Plan. The election shall be
irrevocable and shall be made at such time and in such a manner as prescribed by the Management
Committee. The election shall apply only to that year. If a Participant has not made an election
under this Section, any incentive award granted to the Participant for that year shall be paid
pursuant to Sections 11.5 or 11.6, as applicable.

			
	 	 	 
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11.8 Payment Upon Change in Control

     Notwithstanding any other provision of this Plan, in the event of a Change in Control of the
Company, the Incentive Award attributable to the Performance Period in which the Change in Control
occurs shall become fully vested and distributable, in cash, within 30 days after the date of the
Change in Control, in an amount equal to the greater of the annual incentive percentage of Annual
Salary established by the Plan Administrator, or the following:

	 	 	 
	Percentage of Annual Salary	 	Participants employed by the Company holding any of the following positions and Participants employed by Company subsidiaries with positions equivalent  thereto, but not necessarily with the same titles:
	100% of Annual Salary

	 	Chairman of the Board, President, Chief Executive Officer, Vice
Chairman of the Board, Chief Operating Officer, or Executive Vice President
	 
	 	 
	80% of Annual Salary

	 	Senior Vice President
	 
	 	 
	60% of Annual Salary

	 	Vice President

The term “Annual Salary” as used in this Plan shall mean a Participant’s annual base salary
(whether actual or illustrative) in effect on the date of a Change in Control.

     In the event a Change in Control is deemed to have occurred after the end of a Performance
Period, but before the Award Date, each Participant shall be entitled to receive in cash, within 30
days after the date of the Change in Control, those amounts set forth above in this Section 11.8
for such Performance Period. Such amounts are in addition to the amount to which Participants
shall be entitled for the Performance Period in which a Change in Control is deemed to occur.

SECTION 12 REGULATORY APPROVALS AND LISTING

     The Company shall not be required to issue any certificate for shares of Common Stock upon the
exercise of an option or a stock appreciation right granted under the Plan, in payment of an
Incentive Award, with respect to a grant of Restricted Stock or Common Stock awarded as payment of
vested Units prior to:

     (a) obtaining any approval or ruling from the Securities and Exchange Commission, the
Internal Revenue Service or any other governmental agency

			
	 	 	 
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which the Company, in its sole discretion, shall determine to be necessary or
advisable;

     (b) listing of such shares on any stock exchange on which the Common Stock may then be
listed; and

     (c) completing any registration or other qualification of such shares under any
federal or state laws, rulings or regulations of any governmental body which the Company,
in its sole discretion, shall determine to be necessary or advisable.

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

SECTION 13 EFFECTIVE DATE AND TERM OF PLAN

     The Plan was adopted by the Board of Directors on January 20, 1999, and is subject to approval
by the Company’s stockholders within the earlier of the date of the Company’s next annual meeting
of stockholders and twelve (12) months after the date the Plan is adopted by the Board of
Directors. Subject to the foregoing condition, options, limited stock appreciation rights, stock
appreciation rights, Restricted Stock, Incentive Awards and Performance Units may be granted
pursuant to the Plan from time to time within the period commencing upon adoption of the Plan by
the Board of Directors and ending ten (10) years after the earlier of such adoption and the
approval of the Plan by the stockholders. Options, limited stock appreciation rights, stock
appreciation rights, Restricted Stock, Incentive Awards and Performance Units theretofore granted
may extend beyond that date and the terms and conditions of the Plan shall continue to apply
thereto and to shares of Common Stock acquired thereunder. To the extent required to qualify as
“performance-based compensation” under Section 162(m), shares of Common Stock underlying options,
limited stock appreciation rights, stock appreciation rights, Restricted Stock and Common Stock
granted, subject to stockholder approval of the Plan may not be vested, paid, exercised or sold
until such stockholder approval is obtained.

			
	 	 	 
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SECTION 14 GENERAL PROVISIONS

     14.1 Nothing contained in the Plan, or in any option, limited stock appreciation right, stock
appreciation right, Restricted Stock, Incentive Award or Performance Unit granted pursuant to the
Plan, shall confer upon any employee any right with respect to continuance of employment by the
Company or a Subsidiary, nor interfere in any way with the right of the Company or a Subsidiary to
terminate the employment of such employee at any time with or without assigning any reason
therefor.

     14.2 Grants, vesting or payment of stock options, limited stock appreciation rights, stock
appreciation rights, Restricted Stock, Incentive Awards or Performance Units shall not be
considered as part of a Participant’s salary or used for the calculation of any other pay,
allowance, pension or other benefit unless otherwise permitted by other benefit plans provided by
the Company or its Subsidiaries, or required by law or by contractual obligations of the Company or
its Subsidiaries. Notwithstanding the preceding sentence, the Restricted Stock awarded pursuant to
Section 11.5(c) shall not be considered as part of a Participant’s salary or used for the
calculation of any other pay, allowance, pension, or other benefit unless required by contractual
obligations of the Company or its subsidiaries.

     14.3 Unless otherwise provided in the Plan, the right of a Participant or Beneficiary to the
payment of any compensation under the Plan may not be assigned, transferred, pledged or encumbered,
nor shall such right or other interests be subject to attachment, garnishment, execution or other
legal process.

     14.4 Leaves of absence for such periods and purposes conforming to the personnel policy of the
Company, or of its Subsidiaries, as applicable, shall not be deemed terminations or interruptions
of employment, unless a Participant commences a leave of absence from which he or she is not
expected to return to active employment with the Company or its Subsidiaries. The foregoing
notwithstanding, with respect to Incentive Stock Options, employment shall not be deemed to
continue beyond the first ninety (90) days of such leave unless the Participant’s reemployment
rights are guaranteed by statute or contract.

     14.5 In the event a Participant is transferred from the Company to a Subsidiary, or vice
versa, or is promoted or given different responsibilities, the stock options, limited stock
appreciation rights, stock appreciation rights, Restricted Stock, Incentive Awards and Performance
Units granted to the Participant prior to such date shall not be affected.

     14.6 Any amounts (deferred or otherwise) to be paid to Participants pursuant to the Plan are
unfunded obligations. Neither the Company nor any Subsidiary is required to segregate any monies
from its general funds, to create any trusts or to make any special deposits with respect to this
obligation. The Management Committee, in its sole discretion, may direct the Company to share with
its subsidiaries the costs of a portion of

			
	 	 	 
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the incentive awards paid to Participants who are executives of those companies. Beneficial
ownership of any investments, including trust investments which the Company may make to fulfill
this obligation, shall at all times remain in the Company. Any investments and the creation or
maintenance of any trust or any Participant account shall not create or constitute a trust or a
fiduciary relationship between the Plan Administrator, the Management Committee, the Company or any
Subsidiary and a Participant, or otherwise create any vested or beneficial interest in any
Participant or the Participant’s Beneficiary or the Participant’s creditors in any assets of the
Company or its Subsidiaries whatsoever. The Participants shall have no claim against the Company
for any changes in the value of any assets which may be invested or reinvested by the Company with
respect to the Plan.

     14.7 The designation of a Beneficiary shall be on a form provided by the Management Committee,
executed by the Participant (with the consent of the Participant’s spouse, if required by the
Management Committee for reasons of community property or otherwise), and delivered to the
Management Committee. A Participant may change his or her Beneficiary designation at any time. A
designation by a Participant under the Predecessor Plans shall remain in effect under the Plan for
any Restricted Stock, Incentive Awards or Performance Units unless such designation is revoked or
changed under the Plan. If no Beneficiary is designated, if the designation is ineffective, or if
the Beneficiary dies before the balance of a Participant’s account is paid, the balance shall be
paid to the Participant’s spouse, or if there is no surviving spouse, to the Participant’s lineal
descendants, pro rata, or if there is no surviving spouse or any lineal descendant, to the
Participant’s estate. Notwithstanding the foregoing, however, a Participant’s Beneficiary shall be
determined under applicable state law if such state law does not recognize Beneficiary designations
under plans of this sort and is not preempted by laws which recognize the provisions of this
Section 14.7.

     14.8 The Plan shall be construed and governed in accordance with the laws of the State of
Texas, except that it shall be construed and governed in accordance with applicable federal law in
the event that such federal law preempts state law.

     14.9 Appropriate provision shall be made for all taxes required to be withheld in connection
with the exercise, grant or other taxable event with respect to options, limited stock appreciation
rights, stock appreciation rights, Restricted Stock, Incentive Awards and Performance Units under
the applicable laws and regulations of any governmental authority, whether federal, state or local
and whether domestic or foreign, including, but not limited to, the required withholding of a
sufficient number of shares of Common Stock otherwise issuable to a Participant to satisfy the said
required minimum tax withholding obligations. Unless otherwise provided in the grant, a
Participant is permitted to deliver shares of Common Stock (including shares acquired pursuant to
the exercise of an option or stock appreciation right other than the option or stock appreciation
right currently being exercised, to the extent permitted by applicable regulations) for payment of
withholding taxes on the exercise of an option, stock appreciation right, or limited stock
appreciation right, upon the grant or vesting of

			
	 	 	 
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Restricted Stock or upon the payout of Incentive Awards or Performance Units. At the election of
the Plan Administrator or, subject to approval of the Plan Administrator at its sole discretion, at
the election of a Participant, shares of Common Stock may be withheld from the shares issuable to
the Participant upon the exercise of an option or stock appreciation right, upon the vesting of the
Restricted Stock or upon the payout of Performance Units to satisfy tax withholding obligations.
The Fair Market Value of Common Stock as delivered pursuant to this Section 14.9 shall be
determined as of the day prior to delivery, and shall be calculated in accordance with Section 2.9.

     Any Participant that makes a Section 83(b) election under the Code shall, within ten (10) days
of making such election, notify the Company in writing of such election and shall provide the
Company with a copy of such election form filed with the Internal Revenue Service.

     Tax advice should be obtained by the Participant 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 shares of Common Stock issued under the
Plan.

     14.10 The Plan administrator may in its discretion provide financing to a Participant in a
principal amount sufficient to pay the purchase price of any award under the Plan and/or to pay the
amount of taxes required by law to be withheld with respect to any award. Any such loan shall be
subject to all applicable legal requirements and restrictions pertinent thereto, including
Regulation G promulgated by the Federal Reserve Board. The grant of an award shall in no way
obligate the Company or the Plan Administrator to provide any financing whatsoever in connection
therewith.

SECTION 15 COMPLIANCE WITH RULE 16b-3 AND SECTION 162(m)

     The Company’s intention is that, so long as any of the Company’s equity securities are
registered pursuant to Section 12(b) or 12(g) of the 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 and
Section 162(m) and, if any Plan provision is later found not to be in compliance with Rule 16b-3 or
Section 162(m), that provision shall be deemed modified as necessary to meet the requirements of
Rule 16b-3 and Section 162(m). Notwithstanding the foregoing, and subject to Section 5.2, the Plan
Administrator may grant or vest Restricted Stock in a manner which is not in compliance with
Section 162(m) if the Plan Administrator determines that it would be in the best interests of the
Company.

     Notwithstanding anything in the Plan to the contrary, the Board of Directors, in its absolute
discretion, may bifurcate the Plan so as to restrict, limit or condition the use of any provision
of the Plan to Participants who are Section 16 Insiders without so restricting, limiting or
conditioning the Plan with respect to other Participants.

			
	 	 	 
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SECTION 16 AMENDMENT, TERMINATION OR DISCONTINUANCE

OF THE PLAN

     16.1 Subject to the Board of Directors and Section 16.2, 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 without further approval of the stockholders of the Company, including, but not limited to,
any amendment necessary to ensure that the Company may obtain any regulatory approval referred to
in Section 12; provided, however, that after a Change in Control no change in any option, limited
stock appreciation right, stock appreciation right, Restricted Stock, Incentive Award or
Performance Unit theretofore granted may be made without the consent of the Participant which would
impair the right of the Participant to acquire or retain Common Stock or cash that the Participant
may have acquired as a result of the Plan.

     16.2 The Plan Administrator and the Board of Directors may not amend the Plan without the
approval of the stockholders of the Company to

     (a) materially increase the number of shares, rights, Incentive Awards or Units that
may be issued under the Plan to Section 16 Insiders; or

     (b) lower the Option Price at which options may be granted pursuant to Section 6.4(a)
or lower the Option Price of any outstanding options, except as provided by Section 5.5.

     16.3 The Board of Directors may at any time suspend the operation of or terminate the Plan
with respect to any shares of Common Stock, rights or Performance Units which are not at that time
subject to option, limited stock appreciation right, stock appreciation right or grant of
Restricted Stock, Incentive Awards or Performance Units.

			
	 	 	 
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     IN WITNESS WHEREOF, the Company has caused the Plan to be executed effective as of January 20,
1999.

	 	 	 	 	 
	 	EL PASO ENERGY CORPORATION

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

Human Resources and Administration 	 
	 

Attest:

	 	 	 
	 

	 	 
	/s/ David L. Siddall

	 	  
	 

	 	 
	Corporate Secretary
	 	 

			
	 	 	 
	El Paso Energy Corporation
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	1999 Omnibus Incentive Compensation Plan

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