John W. Somerhalder II, who directed El Paso Corp.‘s natural gas pipeline group before resigning earlier this year (see Daily GPI, March 31), has entered into an agreement and general release with the company. He also entered into a Professional Services Agreement to provide consulting services to El Paso on various pipeline projects for $41,000 per month for 12 months. Under the severance agreement, Somerhalder will receive $642,000. El Paso also agreed to provide Somerhalder with a prorationing of his incentive compensation for 2005, which included one third of his target 2005 annual cash incentive bonus in the amount of $203,300, a cash equivalent in the amount of $12.815 million equal to the prorated value of a 2005 equity award had he received that grant and eight months of continued medical coverage subject to his payment of the required contributions. Upon his departure, Somerhalder had 95,000 vested nonqualified stock options and 49,531 shares of vested restricted stock.

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