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exv10wg

	 	 	 	 	 

EXHIBIT 10.G

EL PASO ENERGY CORPORATION

SENIOR EXECUTIVE SURVIVOR

BENEFIT PLAN

AMENDED AND RESTATED EFFECTIVE AS OF AUGUST 1, 1998

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 

	ARTICLE I

	 	NAME AND PURPOSE
	 	 	1	 
	     1.1

	 	Name of the Plan
	 	 	1	 
	     1.2

	 	Purpose
	 	 	1	 
	     1.3

	 	Scope of the Plan
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II

	 	ADMINISTRATION
	 	 	1	 
	     2.1

	 	Administrator
	 	 	1	 
	     2.2

	 	The Administrator’s Powers and Duties
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE III

	 	PARTICIPATION
	 	 	2	 
	     3.1

	 	Participation in the Plan
	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	 	SURVIVOR’S BENEFIT	 	 	3	 
	     4.1

	 	Pre-Retirement Survivor’s Benefit
	 	 	3	 
	     4.2

	 	Cash-Out of Retirement Survivor’s Benefit
	 	 	3	 
	     4.3

	 	Annual Salary
	 	 	3	 
	     4.4

	 	No Duplicate Coverage
	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE V

	 	PAYMENT OF BENEFITS
	 	 	4	 
	     5.1

	 	Payment of Survivor’s Benefit
	 	 	4	 
	     5.2

	 	Beneficiary
	 	 	4	 
	     5.3

	 	Proof of Death or Disability
	 	 	4	 
	     5.4

	 	Payment to Person Under a Disability
	 	 	4	 
	     5.5

	 	Duration of Coverage
	 	 	5	 
	 

	 	     (a) Active Employment
	 	 	5	 
	 

	 	     (b) Disability
	 	 	5	 
	 

	 	     (c) All Other Terminations
	 	 	5	 
	     5.6

	 	Payment by the Company
	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	 	FUNDING THE PLAN
	 	 	5	 
	     6.1

	 	Unfunded Obligation
	 	 	5	 
	     6.2.

	 	Individual Policies of Insurance
	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	 	MISCELLANEOUS
	 	 	6	 
	     7.1

	 	Non-Assignability
	 	 	6	 
	     7.2

	 	Claims Procedure
	 	 	6	 
	     7.3

	 	Liability of Administrator
	 	 	7	 
	     7.4

	 	Adoption of Plan
	 	 	7	 
	     7.5

	 	Amendments, Suspension or Termination
	 	 	7	 
	     7.6

	 	Applicable State Law
	 	 	7	 
	     7.7

	 	No Guarantee of Employment
	 	 	7	 
	     7.8

	 	No Examination or Accounting
	 	 	8	 
	     7.9

	 	Other Terms and Conditions
	 	 	8	 
	     7.10

	 	Effective Date of Plan
	 	 	8	 

	 	 	 

	El Paso Energy Corporation 

Senior Executive Survivor Benefit Plan

	 	Table of Contents

-i-

 

EL PASO ENERGY CORPORATION

SENIOR EXECUTIVE SURVIVOR BENEFIT PLAN

AMENDED AND RESTATED EFFECTIVE AS OF AUGUST 1, 1998

ARTICLE I NAME AND PURPOSE

	1.1	 	NAME OF THE PLAN

          The name of the Plan is the “El Paso Energy Corporation Senior
Executive Survivor Benefit Plan.”

	1.2	 	PURPOSE

          The purpose of the Plan is to provide survivor benefits for certain
senior executives of El Paso Energy Corporation (the “Company”) and its
designated subsidiaries to secure the good will, loyalty and efficiency of the
covered executives, and to attract and retain in the employ of the Company
persons of outstanding competence.

	1.3	 	SCOPE OF THE PLAN

          The Plan is intended to be an unfunded or an insured welfare plan
maintained by the Company for the purpose of providing benefits for a select
group of management employees who are highly compensated, pursuant to Section
104(a)(3) of the Employee Retirement Income Security Act of 1974 (ERISA) and
Labor Department regulation Section 2520.104-24 thereunder, or any statutory or
regulatory provisions that may hereafter replace such sections. No Participant
shall be required or permitted to make contributions to the Plan.

ARTICLE II ADMINISTRATION

	2.1	 	ADMINISTRATOR

          The Executive Vice President-Human Resources of the Company or the
officer holding a position of comparable responsibilities shall be the
administrator (the “Administrator”) of the Plan.

	2.2	 	THE ADMINISTRATOR’S POWERS AND DUTIES

          The Administrator shall have such powers and duties as may be
necessary to discharge his functions hereunder including, but not limited to,
the following:

     (a) to make such rules and regulations as may be required to
carry out the provisions of the Plan or to facilitate the operations
of the Plan;

	 	 	 

	El Paso Energy Corporation 

Senior Executive Survivor Benefit Plan

	 	Page 1

 

 

     (b) to construe and interpret the Plan, to decide all
questions of eligibility and to determine the amount, manner and time
of payment of any benefits hereunder;

     (c) to make a determination as to the right of any person to
a benefit;

     (d) to obtain from the Company and from Participants such
information as shall be necessary for the proper administration of the
Plan and, when appropriate, to furnish such information to other
persons entitled thereto;

     (e) to purchase group term or individual policies of life
insurance covering the Participants to fund the obligation of the
Company pursuant to the terms of this Plan;

     (f) to authorize one or more agents to make any payment on
behalf of the Company, to appoint agents and clerks, and to employ
such professional services, including legal, medical, accounting and
actuarial, as may be required in carrying out the provisions of the
Plan; and

     (g) to keep all such books of account, records and other
data as may be necessary for the proper administration of the Plan.

     All determinations and actions by the Administrator pursuant to the
terms of the Plan and any rules or regulations thereunder shall be binding upon
all Participants and their Beneficiaries.

ARTICLE III PARTICIPATION

	3.1	 	PARTICIPATION IN THE PLAN

          Executives of the Company and its subsidiaries who possess an employee
classification of level D or higher will be eligible to participate in the Plan
(the “Participants”). Generally, Participants will be the Chairman of the
Board, President and Chief Executive officer, the Vice Chairman and the Senior
Officers of the Company and certain of its operating subsidiaries reporting
directly to them who have the principal responsibility for the management,
direction and success of the Company as a whole or particular business unit
thereof. However, the Administrator may, at his discretion and solely for
purposes of determining eligibility to be a Participant, adjust an employee’s
level classification to ensure that level classifications are determined in a
uniform manner among the Company and its subsidiaries. Any participant in the
Burlington Resources Inc. Senior Executive Survivor Benefit Plan (“BRI Plan”)
on the day immediately preceding the effective date of this Plan, who is an
employee of the Company, shall become a Participant of this Plan on the
effective date and shall immediately cease participation in the BRI Plan.

	 	 	 

	El Paso Energy Corporation 

Senior Executive Survivor Benefit Plan

	 	Page 2

 

 

ARTICLE IV SURVIVOR’S BENEFIT

	4.1	 	PRE-RETIREMENT SURVIVOR’S BENEFIT

          If a Participant dies while employed by the Company or a subsidiary,
the Company shall pay to the Participant’s Beneficiary a monthly survivor’s
benefit (“Survivor’s Benefit”) for 30 months. The monthly payment shall be
calculated as follows:

          (a) the amount necessary to pay, after payment of Federal
income tax, (i) two and one-half times the Participant’s Annual Salary
less (ii) the amount of any Cash-Out that the Participant previously
received (as described in Section 4.2), and less (iii) $50,000, which
may be paid as a group life insurance benefit;

          (b) divided by thirty.

In calculating the amount by which the Survivor’s Benefit will be increased to
adjust for Federal income tax, the highest applicable marginal rate for the
year in which the payments begin shall be assumed to apply, and the Beneficiary
shall be assumed to pay tax on the complete benefit in the year monthly
payments commence, rather than upon receipt of each monthly payment when such
amounts are actually taxable. If the amount so calculated is zero or less, no
payment shall be made to the Participant’s Beneficiary under this Plan.

	4.2	 	CASH-OUT OF RETIREMENT SURVIVOR’S BENEFIT

          Each executive who was a participant on December 1, 1988, in the BRI
Plan has received the actuarial present value of the Retirement Survivor’s
Benefit offered by the BRI Plan prior to December 1, 1988 (the “Cash-out”). No
further Retirement Survivor’s Benefit shall be paid by this Plan.

	4.3	 	ANNUAL SALARY

          For purposes of this Plan, a Participant’s Annual Salary shall mean
the annual salary being paid to him by the Company or subsidiary at the time of
his death, including amounts contributed by his employer on behalf of the
Participant to a deferred compensation plan, or any salary reduction plan
meeting the requirements of Section 401(k) of the Internal Revenue Code of
1986, as amended, and the regulations promulgated thereunder from time to time,
or any statutory provision that may hereafter replace such section, but
excluding payments to the Participant under any stock option, employee stock
ownership, bonus, performance share unit, or other incentive plans or extra,
vacation, or added compensation or benefits of any kind or nature.

	4.4	 	NO DUPLICATE COVERAGE

          Participants in this Plan shall not be eligible to receive life
insurance benefits under any group term life insurance policies (other than
travel and accident policies) which are purchased by the Company or its
subsidiaries to cover employees who are not eligible to participate in this
Plan.

	 	 	 

	El Paso Energy Corporation 

Senior Executive Survivor Benefit Plan

	 	Page 3

 

 

ARTICLE V PAYMENT OF BENEFITS

	5.1	 	PAYMENT OF SURVIVOR’S BENEFIT

          The Survivor’s Benefit shall be paid commencing on the first day of
the month following the Participant’s death, or as soon thereafter as is
practicable, in thirty monthly installments. The unpaid balance of the
Survivor’s Benefit shall not bear interest. The Administrator may, in his sole
discretion, arrange for a lump sum payment to the Participant’s Beneficiary of
the unpaid balance of the Survivor’s Benefit, commuted to a present value based
on a reasonable discount rate to be determined by the Administrator.

	5.2	 	BENEFICIARY

          The Beneficiary shall be the person or persons designated from time to
time by a Participant, upon a form made available by the Administrator for such
purpose or in such form satisfactory to the Administrator, to receive
distributions from this Plan in the event of the Participant’s death. Any such
person or persons designated by the Participant under the BRI Plan shall be the
Beneficiary under this Plan until such designation is revoked or changed. In
the event that no such designation shall have been made or the person so
designated shall have predeceased the Participant or shall have died before the
Benefit has been fully paid, the remaining balance of such Benefit shall be
paid in equal shares to the first surviving class of the following classes of
preference beneficiaries: (a) the Participant’s spouse, (b) the Participant’s
surviving children, (c) the Participant’s parents, (d) the Participant’s
surviving brothers and sisters, or (e) the Participant’s executor or
administrator. A Participant may at any time change his beneficiary designation
by filing prior to such Participant’s death, written notice of such change with
the Administrator in the manner set forth in this Section 5.2.

	5.3	 	PROOF OF DEATH OR DISABILITY

          The Administrator may require proof of death or permanent disability
of a Participant and evidence of the right of a Beneficiary to receive a
Benefit of a deceased Participant.

	5.4	 	PAYMENT TO PERSON UNDER A DISABILITY

          If a Benefit is payable to a minor or incompetent or to a person
incapable of handling the disposition of his property, the Administrator may
pay such Benefit to the guardian, legal representative or person having the
care and custody of such Beneficiary. The Administrator may require proof of
incompetency, minority or guardianship as he may deem appropriate prior to
distribution of the Benefit. Such distribution shall completely discharge the
Administrator and the Company from all liability with respect to such Benefit.

	 	 	 

	El Paso Energy Corporation 

Senior Executive Survivor Benefit Plan

	 	Page 4

 

 

	5.5	 	DURATION OF COVERAGE

     (a) Active Employment

     A Participant shall remain eligible for the Benefit provided by
this Plan so long as he shall remain actively employed by the Company
or a subsidiary in an executive position comparable to those described
in Section 3.1. Leaves of absence for such periods and purposes
consented to by the Company or its subsidiaries, as applicable, shall
not be deemed termination of employment.

     (b) Disability

     A Participant who becomes permanently disabled while employed by
the Company or a subsidiary for purposes of this Plan shall be deemed
to remain in the active employment of his employer while under such
disability until such Participant retires under a pension plan
sponsored by the Company or a subsidiary or until he has attained age
sixty-five (65), whichever date is the first to occur. At such time
such disabled Participant shall be deemed to be a retired Participant
for purposes of this Plan and, therefore, no longer eligible for any
Survivors Benefit provided by this Plan. A Participant shall be
considered permanently disabled when he is eligible to receive
benefits under the El Paso Energy Corporation Long Term Disability
Income Plan or a plan providing comparable benefits which is sponsored
by his Employer.

     (c) All Other Terminations

     A Participant who resigns or whose employment with the Company or
any of its subsidiaries is terminated for reasons other than death or
permanent disability shall continue to be covered by the Plan for
thirty-one (31) days following the date of such termination.

	5.6	 	PAYMENT BY THE COMPANY

          All payments to Participants of the Plan, whether or not they
previously participated in the BRI Plan, shall be made by the Company.

ARTICLE VI FUNDING THE PLAN

	6.1	 	UNFUNDED OBLIGATION

          The Survivor’s Benefits to be paid to the Beneficiaries of the
Participants pursuant to this Plan are an unfunded obligation of the Company.
Nothing herein contained shall require the Company to segregate any monies from
its general funds, to create any trust, to make any special deposits, or to
purchase any policies of insurance with respect to this obligation. Title to
and beneficial ownership of any policies of insurance purchased or funds
invested by the Company,

	 	 	 

	El Paso Energy Corporation 

Senior Executive Survivor Benefit Plan

	 	Page 5

 

 

including the proceeds, income and profits therefrom, which the Company may
make to fulfill its obligations under this Plan shall at all times remain in
the Company.

	6.2	 	INDIVIDUAL POLICIES OF INSURANCE

          Notwithstanding the provisions of Section 6.1, the Company may fulfill
part or all of its obligation to provide Survivor’s Benefits to the
Participants by purchasing individual “key man” policies of insurance on one or
more of the Participants. Such individual contracts and the proceeds therefrom
shall at all times remain the sole property of the Company and the Participants
whose lives are insured and their Beneficiaries shall have no ownership rights
in such policies or insurance.

ARTICLE VII MISCELLANEOUS

	7.1	 	NON-ASSIGNABILITY OF BENEFITS

          No benefit payable at any time under the Plan shall be subject in any
manner to alienation, sale, transfer, assignment, pledge, or encumbrance of any
kind. Any attempt to alienate, sell, transfer, assign, pledge, or otherwise
encumber any such benefit, whether presently or thereafter payable, shall be
void. To the extent permitted by law, no benefits payable under the Plan shall
in any manner be subject to garnishment, attachment, execution, or other legal
process or be liable for, or subject to the debts or liability of any
Participant or Beneficiary.

	7.2	 	CLAIMS PROCEDURE

          Claims for benefits under the Plan shall be filed on forms supplied by
the Administrator to:

Administrator

El Paso Energy Corporation

Senior Executive Survivor Benefit Plan

Human Resources Department

El Paso Energy Corporation

1001 Louisiana Street

Houston, Texas 77002

or such other address as may be communicated in writing to the Participants by
or at the direction of the Administrator. If any claim for a benefit is wholly
or partially denied by the Administrator, the Administrator shall give written
notice to the claimant setting forth the specific reasons for the denial in a
manner calculated to be understood by the claimant. Any claimant whose request
for a benefit is denied in whole or in part may submit a written appeal to the
Administrator for a review of the denial. Within sixty (60) days after receipt
of such an appeal, the Administrator shall notify the claimant in writing of
his decision with respect to the appeal and the specific reasons for the
decision. The decision of the Administrator shall be final.

	 	 	 

	El Paso Energy Corporation 

Senior Executive Survivor Benefit Plan

	 	Page 6

 

 

	7.3	 	LIABILITY OF ADMINISTRATOR

          In connection with any action or determination, the Administrator
shall be entitled to rely upon information furnished by the Company or its
subsidiaries. To the extent permitted by law, the Company shall indemnify the
Administrator against any liability or loss sustained by reasons of any act or
failure to act in his administrative capacity, if such act or failure to act
does not involve willful misconduct. Such indemnification of the Administrator
shall include attorneys’ fees and other costs and expenses reasonably incurred
in defense of any action brought against the Administrator by reason of any
such act or failure to act.

	7.4	 	ADOPTION OF PLAN

          Any subsidiary which is an affiliate of the Company may be designated
by the Company as an Employer for purposes of this Plan. Any Employer may
withdraw from participation in the Plan at any time by filing with the
Administrator a written notice to that effect prior to the effective date of
withdrawal.

	7.5	 	AMENDMENTS, SUSPENSION OR TERMINATION

The Compensation and Nominating Committee of the Board of Directors of the
Company or the Administrator shall have the right to amend, modify, suspend, or
terminate this Plan at any time. No such amendment, suspension or termination
shall adversely affect the right of a Beneficiary to receive a benefit pursuant
to the terms of the Plan as the result of the death of a Participant which
occurred prior to the date of such change. The Board of Directors amended and
restated the Plan effective as of August 1, 1998, in connection with the
reorganization of the Company into a holding company structure whereby El Paso
Energy Corporation became the publicly held company and El Paso Natural Gas
Company became a wholly owned subsidiary. This Plan was assumed by El Paso
Energy Corporation pursuant to an Assignment and Assumption Agreement effective
as of August 1, 1998, by and between El Paso Energy Corporation and El Paso
Natural Gas Company.

	7.6	 	APPLICABLE STATE LAW

          This Plan shall be construed in accordance with the laws of the State
of Texas.

	7.7	 	NO GUARANTEE OF EMPLOYMENT

          Nothing contained in this Plan shall be construed as a contract of
employment between a Company or a subsidiary and any Participant, or as a right
of any Participant to be continued in the employment of his Employer.

	 	 	 

	El Paso Energy Corporation 

Senior Executive Survivor Benefit Plan

	 	Page 7

 

 

	7.8	 	NO EXAMINATION OR ACCOUNTING

          Neither this Plan nor any action taken thereunder shall be construed
as giving any persons the right to an accounting or to examine the books or
affairs of the Company.

	7.9	 	OTHER TERMS AND CONDITIONS

          The Company may impose such other lawful terms and conditions on an
employee’s participation in this Plan as it shall deem desirable.

	7.10	 	EFFECTIVE DATE OF PLAN

          The Plan shall be effective as of January 1, 1992.

	 	 	 

	El Paso Energy Corporation 

Senior Executive Survivor Benefit Plan

	 	Page 8

 

 

          IN WITNESS WHEREOF, the Company has caused the Plan to be amended and
restated effective as of August 1, 1998.

	 	 	 	 	 
	 	EL PASO ENERGY CORPORATION

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

	 	 	 	 	 
	 	ATTEST:

 	 
	 	By 	  /s/ David L. Siddall
 	 
	 	 	Title:   Corporate Secretary 	 
	 	 	 
	 

	 	 	 

	El Paso Energy Corporation 

Senior Executive Survivor Benefit Plan

	 	Page 9exv10wp

EXHIBIT 10.P

EL PASO CORPORATION

2005 COMPENSATION PLAN

FOR

NON-EMPLOYEE DIRECTORS

TABLE OF CONTENTS

	 	 	 	 	 

	SECTION 1 PURPOSE
	 	 	1	 
	1.1 Purpose
	 	 	1	 
	 
	 	 	 	 
	SECTION 2 ADMINISTRATION
	 	 	1	 
	2.1 Management Committee
	 	 	1	 
	 
	 	 	 	 
	SECTION 3 PARTICIPATION
	 	 	1	 
	3.1 Participants
	 	 	1	 
	 
	 	 	 	 
	SECTION 4 SHARES AVAILABLE FOR THE PLAN
	 	 	2	 
	4.1 Maximum Number of Shares
	 	 	2	 
	4.2 Adjustment to Number of Shares
	 	 	2	 
	 
	 	 	 	 
	SECTION 5 COMPENSATION
	 	 	2	 
	5.1 Amount of Compensation
	 	 	2	 
	5.2 Compensation Election
	 	 	2	 
	5.3 Plan Year
	 	 	3	 
	5.4 Plan Quarter
	 	 	3	 
	 
	 	 	 	 
	SECTION 6 DEFERRED COMPENSATION
	 	 	3	 
	6.1 Deferred Cash
	 	 	3	 
	6.2 Deferred Common Stock
	 	 	3	 
	6.3 Memorandum Deferred Account
	 	 	4	 
	6.4 Discretionary Investment by Company
	 	 	5	 
	 
	 	 	 	 
	SECTION 7 LONG-TERM EQUITY
	 	 	5	 

 

	 	 	 	 	 

	7.1 Long-Term Equity Credit
	 	 	5	 
	 
	 	 	 	 
	SECTION 8 PHANTOM STOCK UNITS
	 	 	5	 
	8.1 Phantom Stock Units
	 	 	5	 
	 
	 	 	 	 
	SECTION 9 PAYMENT OF DEFFERED COMPENSATION
	 	 	6	 
	9.1 Payment of Deferred Cash
	 	 	6	 
	9.2 Payment of Deferred Common Stock
	 	 	7	 
	9.3 Acceleration of Payment of Deferred Cash and
	 	 	7	 
	Deferred Common Stock
	 	 	 	 
	 
	 	 	 	 
	SECTION 10 GENERAL PROVISIONS
	 	 	10	 
	10.1 Issuance of Common Stock
	 	 	10	 
	10.2 Unfunded Obligation
	 	 	11	 
	10.3 Beneficiary
	 	 	11	 
	10.4 Permanent Disability
	 	 	12	 
	10.5 Incapacity of Participant or Beneficiary
	 	 	12	 
	10.6 Nonassignment
	 	 	12	 
	10.7 Termination and Amendment
	 	 	12	 
	10.8 Applicable Law
	 	 	13	 
	10.9 Effective Date and Term of the Plan
	 	 	13	 
	10.10 Compliance With Section 16(b) of the Exchange Act
	 	 	13	 
	10.11 Impact of Future Regulations
	 	 	13	 

EL PASO CORPORATION

2005 COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS

SECTION 1 PURPOSE

1.1 Purpose

     The purpose of the Plan is to provide a compensation program for non-employee Directors of El
Paso Corporation (the “Company”), that will attract and retain highly qualified individuals to
serve as members of the Company’s Board of Directors (the “Board”). The Plan permits non-employee
Directors of the Company to receive their Compensation (as defined below) in the form of cash,
deferred cash, deferred shares of Company common stock, par value $3 per share, (“Common Stock”) or
any combination of the foregoing. For purposes of the Plan, the term “Compensation” shall mean the
Participant’s annual retainer and meeting fees, if any, for each regular or special meeting of the
Board and for any committee meetings attended.

 

SECTION 2 ADMINISTRATION

2.1 Management Committee

     Subject to Section 10.7, the Plan shall be administered by a management committee (the
“Management Committee”) consisting of the Chief Executive Officer of the Company or such other
senior officers as the Chief Executive Officer shall designate. The Management Committee shall
interpret the Plan, shall prescribe, amend and rescind rules relating to it from time to time as it
deems proper and in the best interests of the Company, and shall take any other action necessary
for the administration of the Plan. Any decision or interpretation adopted by the Management
Committee shall be final and conclusive and shall be binding upon all Participants (as defined in
Section 3.1).

SECTION 3 PARTICIPATION

3.1 Participants

     Each person who is a non-employee Director of the Company on the Effective Date (as defined in
Section 10.9) of the Plan shall become a participant in the Plan (a “Participant”) on the Effective
Date. Thereafter, each non-employee Director of the Company shall become a Participant immediately
upon election to the Board.

SECTION 4 SHARES AVAILABLE FOR THE PLAN

4.1 Maximum Number of Shares

     Subject to Section 4.2, the maximum number of shares of Common Stock which may at any time be
awarded under the Plan is two million five hundred thousand (2,500,000) shares of Common Stock.
Awards may be from shares held in the Company’s treasury or issued out of authorized but unissued
shares of the Company, or partly out of each, as shall be determined by the Management Committee.

4.2 Adjustment to Number of Shares

     In the event of recapitalization, stock split, stock dividend, exchange of shares, merger,
reorganization, change in corporate structure or shares of the Company or similar event, the Board,
upon recommendation of the Management Committee, may make appropriate adjustments to the number of
shares (i) authorized for the Plan, and (ii) allocated under the Common Stock Deferral (as defined
in Section 6.2).

 

SECTION 5 COMPENSATION

5.1 Amount of Compensation

     Each Director’s Compensation shall be determined in accordance with the Company’s By-laws and
shall be paid, unless deferred pursuant to Section 6, in the Plan Year (as defined in Section 5.3)
in which it is earned in four equal quarterly installments with each installment being made on or
about the last day of the applicable Plan Quarter (as defined in Section 5.4) (the “Payment Date”).
The Management Committee, if necessary, may determine prior to the beginning of the applicable
Plan Quarter for which Compensation is to be paid that payment shall be made at a date later than
the Payment Date.

5.2 Compensation Election

     Except as provided in Section 7, by December 31 of the calendar year prior to each Plan Year,
or at such later time as may be provided by Treasury Regulations promulgated under Section 409A of
the Internal Revenue Code (the “Code”), each Participant may elect to receive his or her
Compensation for the following Plan Year (as defined below) in the form of cash, deferred cash,
deferred Common Stock or any combination of the foregoing, by submitting a written notice to the
Company in the manner prescribed by the Management Committee. In the case of a newly-elected
Director, such election may be made within thirty (30) days of the Director’s election to the Board
with respect to Compensation for services performed subsequent to the election. Any combination of
the alternatives may be elected, provided the aggregate of the alternatives elected may not exceed
one hundred percent (100%) of the Participant’s Compensation, except as provided in Section 6.2(a).
Unless otherwise provided under the terms of the Compensation, if no election is received by the
Company, the Participant shall be deemed to have made an election to receive his or her
Compensation in undeferred cash. An election under this Section 5.2 shall be irrevocable and shall
apply to the Compensation earned during the Plan Year (as defined below) for which the election is
effective.

5.3 Plan Year

     The term “Plan Year” shall mean the period which begins on the day of the Company’s annual
stockholders’ meeting and terminates the day before the succeeding annual stockholders’ meeting.

5.4 Plan Quarter

     The term “Plan Quarter” shall mean each calendar quarter except that (i) the first Plan
Quarter of any Plan Year which normally shall be a “short” quarter

 

beginning on the day of the annual stockholders’ meeting and ending on June 30, and (ii) the fourth
Plan Quarter of any Plan Year normally shall be a “long” quarter beginning on January 1 and ending
on the day before the annual stockholders’ meeting.

SECTION 6 DEFERRED COMPENSATION

6.1 Deferred Cash

     If a Participant elects pursuant to Section 5.2 to have all or a specified percentage of his
or her Compensation deferred in cash, such amount (a “Cash Deferral”) shall be recorded in a
Memorandum Deferred Account (as defined in Section 6.3) as of the date the Compensation otherwise
would have been paid.

6.2 Deferred Common Stock

     (a) If a Participant elects pursuant to Section 5.2 to have all or a specified percentage of
his or her cash Compensation deferred in Common Stock, or if an amount is required to be taken in
Common Stock pursuant to Section 5.1, and/or the Company’s By-laws, an amount shall be recorded in
a Memorandum Deferred Account, in the form of shares of Common Stock, as determined in subsection
(b) below, as of the date the Compensation otherwise would have been paid. The amount credited to
the Participant’s Memorandum Deferred Account in such case (the “Common Stock Deferral”) shall be
equal to the amount actually deferred plus a premium (the “Conversion Premium”). The Conversion
Premium shall be twenty-five percent (25%) of the Compensation actually deferred.

     (b) The number of shares of Common Stock credited to a Participant’s Memorandum Deferred
Account shall equal the Common Stock Deferral divided by the Fair Market Value of the Common Stock
on the applicable Payment Date. For purposes of this Plan, “Fair Market Value” shall be the mean
between the highest and lowest quoted selling prices at which the Common Stock is sold on the
applicable Payment Date as reported in the NYSE Composite Transactions by The Wall Street Journal
or any other comparable service the Management Committee may determine is reliable on such date, or
if no Common Stock was traded on such date, on the next preceding date on which Common Stock was so
traded.

     (c) Subject to Section 10.1, each Participant who elects deferred Common Stock shall, once the
shares of Common Stock have been credited to his or her Memorandum Deferred Account, receive
dividend equivalents and other distributions on such shares, subject to applicable laws. Any such
dividend equivalents and other distributions shall be deemed reinvested promptly in additional shares of
Common Stock and such additional shares shall be credited

 

to the Memorandum Deferred Account. To the extent a trust is established pursuant to Section 6.4, and Common Stock is held by such trust,
each Participant who elects deferred Common Stock shall have the right, subject to applicable law
and the applicable trustee, to direct the trustee to vote a percentage of the Common Stock held by
the trust that corresponds to the total number of shares of Common Stock credited to the
Participant’s Memorandum Deferred Account over the total shares of Common Stock credited to
Participants’ accounts under all plans covered by the trust arrangement.

     (d) The deferred Common Stock balance in the Memorandum Deferred Account shall be payable to
the Participant in Common Stock.

6.3 Memorandum Deferred Account

     The Company shall establish a ledger account (the “Memorandum Deferred Account”) for each
Participant for the purpose of recording the Company’s obligation to pay the Compensation as
provided in Sections 9.1 and 9.2, and for recording the Long-Term Equity Credit, described below in
Section 7.

     (a) Except as provided in Section 6.4, interest shall accrue on all Cash Deferrals to the date
of distribution and shall be credited to the Memorandum Deferred Account at the end of each
calendar quarter or such other periods as may be determined by the Management Committee. The
Management Committee shall determine the rate of interest or earnings/losses credited to the
Memorandum Deferred Account periodically and in so doing may take into account the earnings,
losses, appreciation or depreciation attributable to discretionary investments made pursuant to
Section 6.4, and any other factors it deems appropriate.

     (b) The Company shall promptly credit each Participant’s Memorandum Deferred Account with the
number of shares of Common Stock calculated in accordance with Section 6.2(b) and (c).

6.4 Discretionary Investment by Company

     The deferred amounts to be paid to the Participants are unfunded obligations of the Company.
The Management Committee may direct that an amount equal to the deferred amount shall be invested
by the Company as the Management Committee, in its sole discretion, shall determine. The
Management Committee may in its sole discretion determine that all or some portion of an amount
equal to the Common Stock Deferrals and Cash Deferrals, and (where appropriate) interest thereon,
shall be paid into one or more grantor trusts to be established by the Company. The Management
Committee may designate an investment advisor to direct investments and reinvestments of the funds, including
investment of any grantor trusts hereunder.

 

SECTION 7 LONG-TERM EQUITY

7.1 Long-Term Equity Credit

     In addition to elective deferrals under Section 6.2(a), each Participant’s Memorandum Deferred
Account shall be credited on each Payment Date with an amount equal to one-fourth (1/4) of the
Participant’s annual Compensation (the “Long-Term Equity Credit”) or as otherwise determined in
accordance with the Company’s By-laws. The Long-Term Equity Credit shall be in the form of a
Common Stock Deferral, but such credit shall not be entitled to the Conversion Premium. Except for
the absence of the Conversion Premium, the Long-Term Equity Credit shall be treated the same as all
other Common Stock Deferrals under this Plan.

SECTION 8 PHANTOM STOCK UNITS

8.1 Phantom Stock Units

     (a) Notwithstanding Section 5.2, if the Management Committee determines that the maximum
number of shares of Common Stock which may be awarded pursuant to Section 4.1 of the Plan has been
issued, then phantom stock units which shall have an accounting value equal to the Fair Market
Value of one (1) share of Common Stock (“PSUs”) shall be credited to the Participant’s Memorandum
Deferred Account for his or her Common Stock Deferral and/or Long-Term Equity Credit for the Plan
Year. The amount of PSUs credited to the Participant’s Memorandum Deferred Account for his or her
Common Stock Deferral shall include the Conversion Premium.

     (b) Each Participant who receives PSUs shall, once the PSUs have been credited to his or her
Memorandum Deferred Account, have the right to receive dividend equivalents and other distributions
on such PSUs, subject to applicable laws. Any such dividend equivalents and other distributions
shall be deemed reinvested promptly in additional PSUs and such additional PSUs shall be credited
to the Memorandum Deferred Account until the Memorandum Deferred Account is distributed.
Participants do not have the right to vote the PSUs.

     (c) When, and if, additional shares of Common Stock become available under the Plan or a
successor plan, the PSUs credited to a Participant’s Memorandum Deferred Account shall be replaced
with an equivalent number of shares of deferred Common Stock credited to the
Participant’s Memorandum Deferred Account. Such shares of deferred Common Stock shall be treated
as all other Common Stock Deferrals under the Plan. If no additional shares of Common Stock become
available under the Plan at the time of distribution of the PSUs to the Participant, an amount
equal to the PSU balance of the Participant’s

 

Memorandum Deferred Account shall be paid to the Participant (or the Participant’s Beneficiary
in the case of the Participant’s death) in a lump sum cash payment based on the Common Stock’s Fair
Market Value on the day preceding the date of such payment. Payment of PSUs in cash shall be made
in the month following the date on which the Participant ceases to be a Director. PSUs credited to
the Participant’s Memorandum Deferred Account for the Participant’s Long-Term Equity Credit shall
be subject to any additional restrictions of such other Long-Term Equity Credits under the Plan.

SECTION 9 PAYMENT OF DEFERRED COMPENSATION

9.1 Payment of Deferred Cash

     When a Participant ceases to be a Director, the Company shall pay to the Participant (or the
Participant’s Beneficiary in the case of the Participant’s death) an amount equal to the deferred
cash balance of his or her Memorandum Deferred Account, plus interest (at a rate determined
pursuant to Section 6.3) on the outstanding deferred cash account balance to the date of
distribution, as follows:

	 	(a)	 	a lump sum cash payment, or

	 	(b)	 	in periodic installments over a period of years as determined
at the time the deferral election is made under Section 5.2.

Payment of deferred cash shall be made or, in the case of installments over a period of years,
shall begin to be made, in the month following the date on which a Participant ceases to be a
Director.

9.2 Payment of Deferred Common Stock

     When a Participant ceases to be a Director, the Company shall distribute Common Stock to the
Participant (or the Participant’s Beneficiary in the case of the Participant’s death) in an amount
equal to the number of whole shares of Common Stock in a Participant’s Memorandum Deferred Account,
as follows:

	 	(a)	 	a lump sum distribution, or

	 	(b)	 	in annual installments over a period of years as determined
at the time the deferral election is made under Section 5.2.

Any fractional shares of Common Stock held in the Participant’s account shall be paid to the
Participant (or the Participant’s Beneficiary in the case of the Participant’s death) in a lump sum
cash payment based on the Common Stock’s Fair Market Value on the day preceding the date of such
payment.

 

     Payment of deferred Common Stock shall be made or, in the case of installments over a period
of years, shall begin to be made, in the month following the date on which a Participant ceases to
be a Director, or such later date as may be necessary to comply with Section 16(b) of the
Securities Exchange Act, as amended and rules promulgated thereunder (the “Exchange Act”).

9.3 Acceleration of Payment of Deferred Cash and Deferred Common Stock

     (a) In the event of a Participant’s death or Permanent Disability, notwithstanding the
Participant’s elections made with respect to form of distribution under Section 9.1 and 9.2, the
balance of the Participant’s Deferred Memorandum Account shall be distributed in full as soon as
practicable (but in no event later than thirty (30) days) following the Participant’s death or
Permanent Disability.

     (b) Subject to Section 409A of the Code, in case of an unforeseeable emergency, a Participant
may request a distribution from the Participant’s Deferred Memorandum Account earlier than the date
to which it was deferred.

     For purposes of this Section 9.3(b), an “unforeseeable emergency” shall be limited to a severe
financial hardship to the Participant resulting from an illness or accident of the Participant, the
Participant’s spouse, or a dependent (as defined in Section 152(a) of the Code) of the Participant,
loss of the Participant’s property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of the Participant.
The circumstances that will constitute an unforeseeable emergency will depend upon the facts of
each case, but, in any case, amounts distributed with respect to an unforeseeable emergency may not
exceed amounts necessary to satisfy such emergency, plus amounts necessary to pay taxes reasonably
anticipated as a result of the distribution, after taking into account the extent to which such
hardship is or may be relieved: (i) through reimbursement or compensation by insurance or otherwise
or (ii) by liquidation of the Participant’s assets, to the extent the liquidation of such assets
would not itself cause severe financial hardship.

     The Committee shall consider any requests for payment on the basis of an unforeseeable
emergency under this Section 9.3(b) on a uniform and nondiscriminatory basis and in accordance with
the standards of interpretation described in Section 457 of the Code and the regulations
thereunder.

     (c) All deferred cash and deferred Common Stock under this Plan shall be paid to a Participant
(or his or her Beneficiary in the case of his or her death) in the event of a Change in Control
within thirty (30) days after the date of the Change in Control, or at such later time as may be
required to enable the

 

Director to avoid liability under Section 16(b) of the Exchange Act.
Notwithstanding the foregoing, no such deferred amounts shall be paid to a Participant who
continues to serve as a Director of the Company or its successor, until such time said deferrals
would otherwise be paid. For purposes of this Plan, a “Change in Control” shall be deemed to occur
upon the occurrence of any of the following after the Effective Date:

     (i) An acquisition (other than directly from the Company) of any voting securities of
the Company (the “Voting Securities”) by any “Person” (as the term “person” is used for
purposes of Section 13(d) or 14(d) of the Exchange Act), immediately after which such
Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of more than twenty percent (20%) of (A) the then-outstanding shares of
Common Stock (or any other securities into which such shares of Common Stock are changed or
for which such shares of Common Stock are exchanged) (the “Shares”) or (B) the combined
voting power of the Company’s then-outstanding Voting Securities; provided,
however, that in determining whether a Change in Control has occurred pursuant to
this paragraph (i), the acquisition of Shares or Voting Securities in a “Non-Control
Acquisition” (as hereinafter defined) shall not constitute a Change in Control. A
“Non-Control Acquisition” shall mean an acquisition by (1) an employee benefit plan (or a
trust forming a part thereof) maintained by (a) the Company or (b) any corporation or other
Person the majority of the voting power, voting equity securities or equity interest of
which is owned, directly or indirectly, by the Company (for purposes of this definition, a
“Related Entity”), (2) the Company or any Related Entity, or (3) any Person in connection
with a “Non-Control Transaction” (as hereinafter defined);

     (ii) The individuals who, as of the Effective Date, are members of the Board (the
“Incumbent Board of Directors”), cease for any reason to constitute at least a majority of
the members of the Board or, following a Merger (as hereinafter defined), the board of
directors of (x) the corporation resulting from such Merger (the “Surviving Corporation”),
if fifty percent (50%) or more of the combined voting power of the then-outstanding voting
securities of the Surviving Corporation is not Beneficially Owned, directly or indirectly,
by another Person (a “Parent Corporation”) or (y) if there is one or more than one Parent
Corporation, the ultimate Parent Corporation; provided, however, that, if
the election, or nomination for election by the Company’s common stockholders, of any new
director was approved by a vote of at least two-thirds of the Incumbent Board of Directors,
such new director shall, for purposes of the Plan, be considered a member of the Incumbent
Board of Directors; and provided, further, however, that no individual shall be
considered a member of the Incumbent Board of Directors if such individual initially
assumed office as a result of an actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board of Directors

 

(a “Proxy Contest”), including by reason of any agreement intended to avoid or settle
any Proxy Contest; or

(iii) The consummation of:

     (A) A merger, consolidation or reorganization (1) with or into the Company or
(2) in which securities of the Company are issued (a “Merger”), unless such Merger
is a “Non-Control Transaction.” A “Non-Control Transaction” shall mean a Merger in
which:

     (a) the stockholders of the Company immediately before such Merger
own directly or indirectly immediately following such Merger at least
fifty percent (50%) of the combined voting power of the outstanding voting
securities of (x) the Surviving Corporation, if there is no Parent
Corporation or (y) if there is one or more than one Parent Corporation,
the ultimate Parent Corporation;

     (b) the individuals who were members of the Incumbent Board of
Directors immediately prior to the execution of the agreement providing
for such Merger constitute at least a majority of the members of the board
of directors of (x) the Surviving Corporation, if there is no Parent
Corporation, or (y) if there is one or more than one Parent Corporation,
the ultimate Parent Corporation; and

     (c) no Person other than (i) the Company, (ii) any Related Entity, or
(iii) any employee benefit plan (or any trust forming a part thereof)
that, immediately prior to the Merger, was maintained by the Company or
any Related Entity, or (iv) any Person who, immediately prior to the
Merger had Beneficial Ownership of twenty percent (20%) or more of the
then outstanding Shares or Voting Securities, has Beneficial Ownership,
directly or indirectly, of twenty percent (20%) or more of the combined
voting power of the outstanding voting securities or common stock of (x)
the Surviving Corporation, if fifty percent (50%) or more of the combined
voting power of the then outstanding voting securities of the Surviving
Corporation is not Beneficially Owned, directly or indirectly by a Parent
Corporation, or (y) if there is one or more than one Parent Corporation,
the ultimate Parent Corporation;

     (B) A complete liquidation or dissolution of the Company; or

 

     (C) The sale or other disposition of all or substantially all of the assets of
the Company and its Subsidiaries taken as a whole to any Person (other than (x) a
transfer to a Related Entity, (y) a transfer under conditions that would constitute
a Non-Control Transaction, with the disposition of assets being regarded as a
Merger for this purpose or (z) the distribution to the Company’s stockholders of
the stock of a Related Entity or any other assets).

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any
Person (the “Subject Person”) acquired Beneficial Ownership of more than the permitted amount of
the then outstanding Shares or Voting Securities as a result of the acquisition of Shares or Voting
Securities by the Company which, by reducing the number of Shares or Voting Securities then
outstanding, increases the proportional number of shares Beneficially Owned by the Subject Persons;
provided, that if a Change in Control would occur (but for the operation of this sentence)
as a result of the acquisition of Shares or Voting Securities by the Company and, after such share
acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional
Shares or Voting Securities and such Beneficial Ownership increases the percentage of the then
outstanding Shares or Voting Securities Beneficially Owned by the Subject Person, then a Change in
Control shall occur.

SECTION 10 GENERAL PROVISIONS

10.1 Issuance of Common Stock

     The Company shall not be required to issue any certificate for shares of Common Stock prior
to:

     (a) obtaining any approval or ruling from the Securities and Exchange Commission, the
Internal Revenue Service or any other governmental agency which the Company, in its sole
discretion, deems necessary or advisable;

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

     (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, determines to be necessary or advisable.

     All certificates for shares of Common Stock delivered under the Plan also shall be subject to
such stop transfer orders and other restrictions as the Management Committee 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 Management Committee may cause a legend or legends to be placed on any
such certificates 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 Management Committee determines that
application of such provisions is no longer required or desirable. In making such determination,
the Management Committee may rely upon an opinion of counsel for the Company.

10.2 Unfunded Obligation

     Any deferred amount to be paid to Participants pursuant to the Plan is an unfunded obligation
of the Company. The Company is not required to segregate any monies from its general funds, to
create any trusts, or to make any special deposits with respect to this obligation. Beneficial
ownership of any investments, including trust investments that 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 memorandum accounts shall not create or constitute a trust or a
fiduciary relationship between the Management Committee or the Company 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 whatsoever. The
Participants shall have no claim against the Company for any changes in the value of any assets
that may be invested or reinvested by the Company with respect to the Plan.

10.3 Beneficiary

     The term “Beneficiary” shall mean the person or persons to whom payments are to be paid
pursuant to the terms of the Plan in the event of the Participant’s death. The designation shall
be on a form provided by the Management Committee, executed by the Participant, and delivered to
the Management Committee. A Participant may change his or her Beneficiary designation at any time.
A designation by a Participant under a predecessor plan shall remain in effect under this Plan
unless it is revoked or changed under this Plan. If no Beneficiary is designated, the designation
is ineffective, or in the event the Beneficiary dies before the balance of the Memorandum Deferred
Account is paid, the balance shall be paid to the Participant’s spouse, or if there is no surviving
spouse, to his or her lineal descendants, pro rata, or if there is no surviving spouse or lineal
descendants, to the Participant’s legal representatives, the Participant’s estate or the person or
persons to whom the deceased’s rights under the Plan shall have passed by will or the laws of descent and distribution (unless the
Management Committee for a given year has designated investment in an annuity, in which case the
payment options selected by the Participant with respect thereto shall govern).

 

10.4 Permanent Disability

     A Participant shall be deemed to have become “Permanently Disabled” if the Participant (i) is
unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than twelve (12) months, receiving income
replacement benefits for a period of not less than three (3) months under an accident and health
plan of the Company.

10.5 Incapacity of Participant or Beneficiary

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

10.6 Nonassignment

     The right of a Participant or Beneficiary to the payment of any amounts under the Plan may not
be assigned, transferred, pledged or encumbered nor shall such right or other interest be subject
to attachment, garnishment, execution or other legal process.

10.7 Termination and Amendment

     Subject to the Board, the Management Committee may from time to time make such amendments to
the Plan as it may deem proper and in the best interest of the Company, including, but not limited
to, any amendment necessary to ensure that the Company may obtain any regulatory approval referred
to above; provided, however, that to the extent required by applicable law, regulation or stock
exchange rule, stockholder approval shall be required. Subject to Section 409A of the Code, the
Board may at any time suspend the operation of or terminate the Plan. No amendment, suspension or termination may impair the right
of a Participant or the Participant’s designated Beneficiary to receive benefits accrued prior to
the effective date of such amendment, suspension or termination.

 

10.8 Applicable Law

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

10.9 Effective Date and Term of the Plan

     The Plan was adopted by the Board on February 18, 2005, and is subject to approval by the
Company’s stockholders. If approved by the stockholders, this Plan will replace the 1995
Compensation Plan for Non-Employee Directors Amended and Restated as of December 4, 2003, and no
further awards will be made under that plan. This Plan shall become effective on the date it is
approved by the Company’s stockholders (the “Effective Date”), and shall remain in effect, subject
to the right of the Board to terminate the Plan at any time pursuant to Section 10.7, until the
date immediately preceding the tenth (10th) anniversary of the Effective Date of the
Plan. No awards shall be granted under this Plan after such date.

10.10 Compliance With Section 16(b) of the Exchange Act

     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 of Common
Stock, the Plan shall comply in all respects with any exemption pursuant to Section 16(b)
promulgated under Section 16 of the Exchange Act. If any Plan provision is later found not to be
in compliance with such exemptions available pursuant to Section 16(b) of the Exchange Act, that
provision shall be deemed modified as necessary to meet the requirements of Section 16(b).

10.11 Impact of Future Legislation or Regulations

     This Plan is intended to be operated in compliance with Section 409A of the Code. The terms
of this Plan should be interpreted to comport with Section 409A and any guidance issued by the
Secretary of the Treasury or the Internal Revenue Service interpreting Section 409A. If necessary,
the terms of this Plan shall be amended to comply with such future guidance.

     IN WITNESS WHEREOF, the Company has caused the Plan to be executed effective as of May 26,
2005.

EL PASO CORPORATION

	 	 	 	 	 
	 	 	 
	 	By  	          /s/ Susan B. Ortenstone
 	 
	 	 	Susan B. Ortenstone                	 
	 	 	Its Senior Vice President, Human
Resources 	 
	 

ATTEST:

	 	 	 	 	 
	 	 
	By  	/s/ David L. Siddall
 	 
	 	David L. Siddall                	 
	 	Corporate Secretary

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