Separation and Consulting Agreement Summary for Michael P. Coghlan

Summary

This document outlines the terms of Michael P. Coghlan's separation from the company, effective November 30, 2002. He will receive severance pay for 24 months, a consulting contract for one year, and lump-sum payments for unused vacation and lost benefits. Participation in various company benefit plans ends at termination, with options for COBRA health coverage and pension vesting through the severance period. Unvested stock options will fully vest and can be exercised until December 31, 2006. The agreement details all compensation, benefits, and transition arrangements related to his departure.

EX-10.4 7 g78958exv10w4.txt SEPARATION SUMMARY FOR MICHAEL P. COGHLAN Exhibit 10.4 SEPARATION SUMMARY EMPLOYEE NAME: Michael P. Coghlan TERMINATION DATE: November 30, 2002 MONTHLY/ANNUAL SALARY: Throughout severance period SEVERANCE BEGINS: December 1, 2002 SEVERANCE ENDS: November 30, 2004 (24 months) CONSULTING CONTRACT BEGINS: January 1, 2003 CONSULTING CONTRACT ENDS: December 31, 2003 VACATION: The Company will pay a lump-sum payment for any unused prorated vacation days not taken in 2002. MESIP Monthly participation and Company match ends as of Termination Date. You may keep your account until age 70 1/2 or request a distribution at any time after termination date by calling Putnam at ###-###-#### SUPPLEMENTAL MESIP: Monthly participation ends as of termination date. The distribution that employee elected will occur automatically after termination date. LIFE INSURANCE COVERAGE: Monthly participation ends as of the last day of the month of termination date. Employee may convert to individual coverage within 30 days of the termination of coverage. MEDICAL & DENTAL INSURANCE: Participation ends as of the last day of the month of termination date. At that time employee may elect to continue to participate in the applicable COBRA plan. COBRA If employee elects coverage under COBRA, the company will make a lump-sum payment, to be increased to the extent necessary to mitigate the tax liabilities associated with this payment. PENSION PLAN: Participation for vesting and benefit service ends as of Severance End Date - November 30, 2004. MANAGEMENT INCENTIVE PLAN (MIP): Will be eligible for a full year MIP award through December 31, 2002. STOCK OPTIONS: All unvested Stock Options issued between January 1, 1997 and January 2, 2001 will become 100% vested and you will have until December 31, 2006 to exercise. FRINGE BENEFITS/ PERQUISITES: Fringe Benefits/Perquisites cease on termination date (11/30/02). Perquisites include, but are not limited to, Auto Allowance ($1,200/month), Management Physical, Financial & Legal Counseling, Outplacement, and Club Membership. The Company will provide a $12,000 lump-sum incentive payment, to be grossed up, to off set the termination of these benefits.