Exhibit 10.3


 


Execution Version


 


EMPLOYMENT AGREEMENT


 


AGREEMENT dated
as of March 14, 2019 (this “Agreement”) by and between MDC PARTNERS INC., a corporation existing under
the laws of Canada (the “Company”), and MARK PENN (the “Executive”).


 


WITNESSETH:


 


WHEREAS, the
Company wishes to employ the Executive and the Executive wishes to accept such employment, upon the terms and conditions hereinafter
set forth.


 


NOW, THEREFORE,
in consideration of the premises and other good and valuable consideration, receipt of which is hereby acknowledged, the parties
agree as follows:


 


		1.	Employment



 


The Company agrees to
employ the Executive during the Term specified in Section 2, and the Executive agrees to accept such employment, upon the
terms and conditions hereinafter set forth.


 


		2.	Term



 


Subject to the provisions
contained in Sections 6 and 7, the Executive’s employment by the Company shall be for a term commencing on
March 18, 2019 (the “Commencement Date”) and shall continue thereafter for a five (5) year term unless and until
either (i) the Executive gives sixty (60) days’ prior written notice of resignation without “Good Reason” (as
defined herein) to the Company, (ii) the Executive terminates employment with “Good Reason” in accordance with Section
6(b) of this Agreement or (iii) the Company terminates the Executive’s employment with or without “Cause”
(as defined herein). Any notice given by the Executive under Section 2(i) shall specify the date of termination and the
fact that the notice is being delivered pursuant to Section 2(i) of this Agreement; the Company shall have the right at
any time during such sixty (60) day notice period to relieve the Executive of all or any portion of his offices, duties and responsibilities
and to place him on a paid leave-of-absence status. The date on which the Executive ceases to be employed by the Company, regardless
of the reason therefor is referred to in this Agreement as the “Termination Date”. The term during which the
Executive’s employment shall continue is referred to as the “Term”.


 


		3.	Duties and Responsibilities



 


(a)          Title.
During the Term, the Executive shall have the position of Chief Executive Officer of the Company.


 


(b)          Duties.
The Executive shall report directly to the Company’s Board of Directors (the “Board”), at such times and
in such detail as the Board shall reasonably require. The Executive shall perform such duties consistent with his position or as
may be directed by the Board.


 




     


     


    

 


(c)          Scope
of Employment. The Executive’s employment by the Company as described herein shall be full-time. During the Term, the
Executive agrees that he will (i) devote the business time and attention consistent with his position and compensation and as reasonably
determined by the Board, his reasonable best efforts, and all his skill and ability to promote the interests of the Company; and
(ii) carry out his duties (A) in a competent manner and serve the Company faithfully and diligently under the direction of
the Board and (B) subject to Section 10 of this Agreement. Notwithstanding the foregoing, and subject to this Section
3(c), the Executive shall be permitted to engage in charitable and civic activities and manage his personal passive investments,
provided that any such activities and/or passive investments are not in a company which transacts business with the Company or
its affiliates or engages in business competitive with that conducted by the Company (or, if such company does transact business
with the Company, or does engage in a competitive business, it is a publicly held corporation and the Executive’s participation
is limited to owning less than 1% of its outstanding shares), and further provided that any such activities (individually or collectively)
do not materially interfere with the performance of his duties or responsibilities under this Agreement. Notwithstanding anything
else set forth herein, the Company acknowledges that the Executive is a manager of The Stagwell Group LLC (“Stagwell Advisors”),
which serves as an investment advisor to Stagwell Media LP (the “Stagwell Fund”) and which performs other services
for entities controlled by the Stagwell Fund. The Company agrees that the Executive may continue to serve as a manager of Stagwell
Advisors, and carry out his duties as a manager of Stagwell Advisors, except as would interfere with the performance of his duties
or responsibilities under this Agreement. The Company further agrees that the Executive may perform services in connection with
the public policy polling commonly known as the Harvard CAPS / Harris Poll, to the same extent as Executive has performed such
services during the one-year period prior to the Commencement Date, except as would interfere with the performance of his duties
or responsibilities under this Agreement.


 


(d)          Office
Location. During the Term, the Executive’s services hereunder shall be performed at the offices of the Company, subject
to necessary travel requirements to the Company’s partner agency office locations in order to carry out his duties in connection
with his positions hereunder.


 


		4.	Compensation



 


(a)          Base
Salary. As compensation for his services hereunder, during the Term, the Company shall pay the Executive in accordance with
its normal payroll practices, an annualized base salary of $750,000 (“Base Salary”).


 




    	 	2	 



     


    

 


(b)          Initial
Equity Incentive Award. On the date immediately following the last day of the Reference Period (as defined below), the Executive
shall receive an award of 1,500,000 stock appreciation rights (“MDC SARs”) in respect of MDC’s Class A
subordinate voting stock (“Class A Shares”) with an exercise price equal to the average closing price for Class
A Shares for the twenty (20) trading day period beginning on March 5, 2019 (being nine (9) trading days prior to the Commencement
Date) and ending on April 1, 2019 (being ten (10) trading days following the Commencement Date) (such period, the “Reference
Period”), all in accordance with and subject to the terms and conditions of a separate stock appreciation rights agreement,
to be executed and delivered by the Executive and MDC (the “MDC SAR Agreement”). The MDC SARs granted pursuant
to the MDC SAR Agreement will become vested and exercisable in three equal installments (each consisting of 500,000 stock appreciation
rights) on each of the first three (3) anniversaries of the Commencement Date (each such date, a “Vesting Date”),
subject to the Executive’s continued employment with the Company through the applicable Vesting Date. Upon exercise of a
vested MDC SAR, the Executive will receive the SAR Amount (as defined below) in the form of Class A Shares, with such number of
shares determined by dividing the SAR Amount by the Fair Market Value of a Class A Share on the date of exercise (with any fractional
share amount being rounded down to the nearest whole share); provided that to the extent the issuance of Class A Shares
in connection with the exercise of an MDC SAR would require (x) shareholder approval under the NASDAQ listing rules (and, if the
Class A Shares are not then listed on NASDAQ, any similar rules of the principal securities exchange on which MDC Class A Shares
are then listed or admitted to trading) or (y) an approval or expiration, waiver or termination of any applicable waiting period
under the Competition Act (Canada), as amended (any of the foregoing in this clause (y), a “Competition Act Approval”),
in each case, to the extent not obtained, then the number of Class A Shares issued in settlement of the SAR Amount shall be reduced
to the maximum number of whole shares for which no shareholder approval or Competition Act Approval would be required, with the
remainder of the SAR Amount paid in cash. The “SAR Amount” is determined by multiplying (i) the excess, if any,
of the Fair Market Value of a Class A Share on the date of exercise of such MDC SAR over the exercise price, by (ii) the number
of MDC SARs that have been exercised. The MDC SARs issued pursuant to this Section 4(b) shall be subject to accelerated
vesting upon (i) the Executive’s death or disability, (ii) termination of the Executive’s employment without “Cause”
or with “Good Reason,” or (iii) a Change in Control (as defined below). To the extent not yet exercised, any MDC SARs
issued pursuant to this Section 4(b) shall expire on the fifth anniversary of the Commencement Date.


 


For purposes of the
MDC SARs, “Fair Market Value” means, with respect to a Class A Share, as of the applicable date of determination
(i) the closing sales price on the immediately preceding business day of Class A Shares as reported on the principal securities
exchange on which such shares are then listed or admitted to trading, or (ii) if not so reported, the average of the closing bid
and ask prices on the immediately preceding business day as reported on the National Association of Securities Dealers Automated
Quotation System, or (iii) if not so reported, as furnished by any member of the National Association of Securities Dealers, Inc.
selected by the Human Resources & Compensation Committee of the Board of Directors. In the event that the price of Class A
Shares shall not be so determinable, the Fair Market Value of Class A Shares shall be determined by the Human Resources & Compensation
Committee in its reasonable discretion.


 


(c)          Annual
Discretionary Bonus. During the Term, the Executive shall be eligible to receive an annual discretionary bonus in a target
amount equal to 100% of the then current Base Salary, based upon criteria determined by the Board’s Compensation Committee,
which criteria shall include the Executive’s performance, the overall financial performance of the Company and such other
factors as the Compensation Committee shall deem reasonable and appropriate in its discretion (the “Annual Discretionary
Bonus”). The Annual Discretionary Bonus will be paid in accordance with the Company’s normal bonus payment procedures


 




    	 	3	 



     


    

 


(d)          Grants
under LTIP Plans. Commencing in January 2020, the Executive shall be eligible to participate in the Company’s LTIP Plans
with an annual target award amount equal to 350% of the Executive’s then current Base Salary, with each such award to be
made on terms and conditions no more or less favorable than those of awards made to other senior executives of the Company.


 


(e)          Perquisite
Allowance. The Company will pay to the Executive a perquisite allowance equal to $5,000 per month during the Term (the “Perquisite
Allowance”), to cover the costs of leasing, insuring and maintaining an automobile and other travel expenses, professional
dues as well as other perquisites, to be paid in accordance with the Company’s normal payroll practices.


 


		5.	Expenses; Fringe Benefits



 


(a)          Expenses.
The Company agrees to pay or to reimburse the Executive for all reasonable, ordinary, necessary and documented business or entertainment
expenses incurred during the Term in the performance of his services hereunder in accordance with the written policies of the Company
as from time to time in effect, including without limitation reasonable, ordinary, necessary and documented first-class transportation
and first-class accommodations. The Executive, as a condition precedent to obtaining such payment or reimbursement, shall provide
to the Company any and all statements, bills or receipts evidencing the travel or out-of-pocket expenses for which the Executive
seeks payment or reimbursement, and any other information or materials, as the Company may from time to time reasonably require.


 


(b)          Benefit
Plans. During the Term, the Executive and, to the extent eligible, his dependents, shall be eligible to participate in and
receive all benefits under any group health plans, welfare benefit plans and programs (including without limitation, disability,
group life (including accidental death and dismemberment) and business travel insurance plans and programs) provided by the Company
to its senior executives and, without duplication, its employees generally, subject, however, to the generally applicable eligibility
and other provisions of the various plans and programs in effect from time to time.


 


(c)          Vacation.
The Executive shall be entitled to four (4) weeks of vacation in accordance with the Company’s policies, with no right of
carry over, to be taken at such times as shall not materially interfere with the Executive’s fulfillment of his duties hereunder,
and shall be entitled to as many holidays, sick days and personal days as are in accordance with the Company’s policy then
in effect generally for its employees.


 


		6.	Termination of Employment



 


(a)          Termination
for Cause. The Company, by direction of the Board (excluding the Executive), shall be entitled to terminate the Term and to
discharge the Executive for “Cause” effective upon the giving of written notice to the Executive. For purposes
of this Agreement, the term “Cause” shall mean:


 




    	 	4	 



     


    

 


(i)          the
Executive's willful failure or refusal to materially perform his duties and responsibilities to the Company as set forth in Section
3 hereof (other than as a result of a Disability pursuant to Section 6(d) hereof), or to abide by the reasonable directives
of the Board, in each case if such failure or refusal is not cured (if curable) within 20 days after written notice thereof by
the Company;


 


(ii)         the
willful fraud or material dishonesty of the Executive in connection with his position or the performance of duties to the Company
(including any misappropriation of the funds or property of the Company), or the willful misconduct of the Executive in connection
with his position or the performance of his duties to the Company;


 


(iii)        the
conviction of Executive in a court of law of, or entering by the Executive of a plea of guilty or no contest to, any felony or
any crime involving material dishonesty or theft;


 


(iv)        willful
failure by the Executive to cooperate as directed by the Board with a bona fide Company internal investigation or an investigation
of the Company by governmental, regulatory or law enforcement authorities, if such breach is not cured (if curable) within 20 days
after written notice thereof to the Executive by the Company; and


 


(v)         any
material breach by the Executive of Sections 8 or 10 hereof, if such breach is not cured (if curable) within 20 days
after written notice thereof to the Executive by the Company.


 


Any notice required to
be given by the Company pursuant to this section shall specify the nature of the claimed breach and the manner in which the Company
requires such breach to be cured (if curable). In the event that the Executive is purportedly terminated for Cause and a court
determines that Cause as defined herein was not present, then such purported termination for Cause shall be deemed a termination
without Cause pursuant to Section 6(c) and the Executive’s rights and remedies will be governed by Section 7(b),
in full satisfaction and in lieu of any and all other or further remedies the Executive may have under this Agreement.


 


(b)         Termination
by the Executive for Good Reason. Provided that a Cause event has not occurred, the Executive shall be entitled to terminate
this Agreement and the Term hereunder for Good Reason (as defined below) at any time during the Term by written notice to the Company
not more than 20 days after the occurrence of the event constituting such Good Reason. For purposes of this Agreement, “Good
Reason” shall be limited to:


 


(i)          a
material diminution of the Executive’s position or authority as set forth in Section 3 hereof, which breach remains
uncured (if curable) for a period of 15 days after written notice of such breach to the Company;


 




    	 	5	 



     


    

 


(ii)         the
Company’s material breach of the compensation and benefits provisions of Section 4 or Section 5 hereof, which
breach remains uncured (if curable) for a period of 15 days after written notice of such breach to the Company; or


 


(iii)        following
a Change in Control (as defined below), the Executive not holding the position of chief executive officer of the ultimate parent
corporation or other controlling entity resulting from the Change in Control transaction.


 


Any notice required to
be given by the Executive pursuant to this Section 6(b) shall specify the nature of the circumstance alleged to constitute
Good Reason and the provisions of this Agreement relied upon, and shall specify the date of termination, which shall not be less
than 30 days or more than 60 days following the date of such notice.


 


For the purposes of this
Agreement, a “Change in Control” shall have the meaning provided in Section 2(b) of the Company’s 2016
Stock Incentive Plan.


 


(c)         Termination
without Cause. The Company, by direction of the Board, shall have the right at any time during the Term to immediately terminate
the employment of the Executive without Cause by giving written notice to the Executive setting forth a date of termination.


 


(d)         Termination
for Death or Disability. In the event of the Executive’s death, the date of termination shall be the date of the Executive’s
death. In the event the Executive shall be unable to perform his duties hereunder by virtue of illness or physical or mental incapacity
or disability (from any cause or causes whatsoever) in substantially the manner and to the extent required hereunder prior to the
commencement of such disability and the Executive shall fail to perform such duties for periods aggregating 120 days, whether or
not continuous, in any continuous period of 360 days (such causes being herein referred to as “Disability”),
the Company shall have the right to terminate the Executive’s employment hereunder as at the end of any calendar month during
the continuance of such Disability upon at least 30 days’ prior written notice to the Executive.


 


		7.	Effect of Termination of Employment



 


(a)         Termination
by the Company for Cause; by Death or Disability; without Good Reason. In the event of the termination of the employment of
the Executive (1) by the Company for Cause; (2) by reason of death or Disability pursuant to Section 6(d); or (3) pursuant
to a notice of resignation without Good Reason, the Executive shall be entitled to the following payments and benefits (the “Accrued
Rights”):


 


(i)          unpaid
Base Salary and Perquisite Allowance through, and any unpaid reimbursable expenses outstanding as of, the date of termination;
and


 




    	 	6	 



     


    

 


(ii)         all
outstanding equity incentive awards (including the MDC SARs) shall be treated in accordance with the governing equity plan and
underlying award agreement, except as otherwise provided in Section 4(b).


 


In the event of termination
of the employment of Executive in the circumstances described in this Section 7(a), except as expressly provided in this
section or any other accrued benefits or indemnification rights under the Company’s by-laws, the Company’s other organizational
documents, or this Agreement, the Company shall have no further liability to the Executive or the Executive’s heirs, beneficiaries
or estate for damages, compensation, benefits, severance or other amounts of whatever nature, directly or indirectly, arising out
of or otherwise related to this Agreement and the Executive’s employment or cessation of employment with the Company.


 


(b)         Termination
by the Company without Cause or by the Executive for Good Reason. In the event of a termination by the Company without Cause
or by the Executive for Good Reason, the Executive shall be entitled to the following payments and benefits:


 


(i)          the
Accrued Rights as provided in Section 7(a) hereof;


 


(ii)         his
Annual Discretionary Bonus with respect to the calendar year prior to the date of termination, when otherwise payable, but only
to the extent earned and approved by the Compensation Committee of the Board but not already paid;


 


(iii)        eligibility
for a pro-rata portion of his Annual Discretionary Bonus with respect to the calendar year in which the date of termination occurs,
when otherwise payable (such pro-rata amount to be equal to the product of (A) the amount of the Annual Discretionary Bonus that
would have been earned for such calendar year based on actual performance for such year, times (B) a fraction, (x) the numerator
of which shall be the number of calendar days commencing January 1 of such year and ending on the date of termination, and (y)
the denominator of which shall equal 365;


 


(iv)        in
the event of a termination without Cause or by the Executive for Good Reason, a severance payment (the “Termination Payment”)
in an amount equal to the product of 1.5 multiplied by the sum of (A) the amount of then-current Base Salary, plus (B) the amount
of the Annual Discretionary Bonus paid (or earned and approved by the Compensation Committee of the Board but not already paid)
in respect of the fiscal year immediately preceding the year which includes the date of termination. The Termination Payment (less
applicable withholding taxes), shall be paid to the Executive in a cash lump-sum not later than 60 days following the date of termination.


 


In the event of termination
of this Agreement in the circumstances described in this Section 7(b), except as expressly provided in this section or any
other accrued benefits or indemnification rights, the Company shall have no further liability to the Executive or the Executive’s
heirs, beneficiaries or estate for damages, compensation, benefits, severance or other amounts of whatever nature, directly or
indirectly, arising out of or otherwise related to this Agreement and the Executive’s employment or cessation of employment
with the Company.


 




    	 	7	 



     


    

 


The Executive shall be
under no duty to mitigate damages hereunder. The making of any severance payments and providing the other benefits as provided
in this Section 7(b) is conditioned upon the Executive signing and not revoking a separation agreement in a form reasonably
satisfactory to the Company (the “Separation Agreement”) within 30 days following the date of termination. The
Separation Agreement shall provide for the contractual severance described in this Section 7(b), a customary release of
all claims by the Executive, and a reaffirmation of the Executive’s restrictive covenants. In the event the Executive breaches
any material provisions of the Separation Agreement or the provisions of Section 8 of this Agreement, in addition to any
other remedies at law or in equity available to it, the Company may cease making any further payments and providing the other benefits
provided for in this Section 7(b), without affecting its rights under this Agreement or the Separation Agreement.


 


		8.	Non-Solicitation Agreement and Protection of Confidential
Information



 


(a)          Non-Solicitation.
The parties hereto agree that the covenants given in this Section 8 are being given incident to the agreements and transactions
described herein, and that such covenants are being given for the benefit of the Company. Accordingly, the Executive acknowledges
(i) that the business and the industry in which the Company competes is highly competitive; (ii) that as a key executive of the
Company he will participate in the servicing of current clients and/or the solicitation of prospective clients, through which,
among other things, the Executive will obtain knowledge of the “know-how” and business practices of the Company, in
which matters the Company has a substantial proprietary interest; (iii) that his employment hereunder requires the performance
of services which are special, unique, extraordinary and intellectual in character, and his position with the Company places him
in a position of confidence and trust with the clients and employees of the Company; and (iv) that his rendering of services to
the clients of the Company necessarily requires the disclosure to the Executive of confidential information (as defined in Section
8(b) hereof) of the Company. In the course of the Executive’s employment with the Company, the Executive will develop
a personal relationship with the clients of the Company and a knowledge of those clients’ affairs and requirements, and the
relationship of the Company with its established clientele will therefore be placed in the Executive’s hands in confidence
and trust. The Executive consequently agrees that it is a legitimate interest of the Company, and reasonable and necessary for
the protection of the confidential information, goodwill and business of the Company, which is valuable to the Company, that the
Executive make the covenants contained herein and that the Company would not have entered into this Agreement unless the covenants
set forth in this Section 8 were contained in this Agreement. Accordingly, the Executive agrees that during the period that
he is employed by the Company and for a period of twelve (12) months thereafter (such period being referred to as the “Restricted
Period”), he shall not, as an individual, employee, consultant, independent contractor, partner, shareholder, or in association
with any other person, business or enterprise, except on behalf of the Company, and regardless of the reason for his ceasing to
be employed by the Company:


 




    	 	8	 



     


    

 


		(i)	attempt in any manner to solicit or accept from any Restricted Client business of the type performed
by the Company or to persuade any Restricted Client to cease to do business or to reduce the amount of business which any such
Restricted Client has customarily done or is reasonably expected to do with the Company, whether or not the relationship between
the Company and such Restricted Client was originally established in whole or in part through the Executive’s efforts; or



 


		(ii)	employ as an employee or retain as a consultant any person, firm or entity who is then or at any
time during the preceding twelve (12) months was an employee of or exclusive consultant to the Company, or persuade or attempt
to persuade any employee of or exclusive consultant to the Company to leave the employ of the Company or to become employed as
an employee or retained as a consultant by any person, firm or entity other than the Company.





 


As used in this Section
8, the term “Company” shall include any subsidiaries of the Company and the term “Restricted Client”
shall mean (1) anyone who is a client of the Company on the date of termination, or if the Executive’s employment shall not
have terminated, at the time of the alleged prohibited conduct (any such applicable date being called the “Determination
Date”); (2) anyone who was a client of the Company at any time during the one-year period immediately preceding the Determination
Date; and (3) any prospective client to whom the Company had made a new business presentation (or similar offering of services)
at any time during the six-month period immediately preceding the date of termination. In addition, if the Restricted Client is
part of a group of companies which conducts business through more than one entity, division or operating unit, whether or not separately
incorporated (a “Client Group”), the term “Restricted Client” as used herein shall only include
each entity, division and operating unit of the Client Group where the same management group of the Client Group has the decision
making authority or significant influence with respect to contracting for services of the type rendered by the Company. For purposes
of this Section 8, it is further agreed that a “Restricted Client” shall be limited solely and exclusively to those
clients which the Executive played a significant and substantial role in soliciting or winning or in rendering or providing services
on behalf of the Company or its subsidiaries. Notwithstanding anything else set forth herein, the term “Restricted Client”
shall not include any client for whom the Executive rendered any services, on behalf of himself or any other person or entity,
at any time preceding the Commencement Date, and which client of the Executive has been disclosed in writing by the Executive to
the Company prior to the date of this Agreement.


 




    	 	9	 



     


    

 


(b)          Confidential
Information. In the course of the Executive’s employment with the Company (and its predecessor), he will acquire and
have access to confidential or proprietary information about the Company and/or its clients, including but not limited to, trade
secrets, methods, models, passwords, access to computer files, financial information and records, computer software programs, agreements
and/or contracts between the Company and its clients, client contacts, client preferences, creative policies and ideas, advertising
campaigns, creative and media materials, graphic design materials, sales promotions and campaigns, sales presentation materials,
budgets, practices, concepts, strategies, methods of operation, financial or business projections of the Company and information
about or received from clients and other companies with which the Company does business. The foregoing shall be collectively referred
to as “confidential information”. The Executive is aware that the confidential information is not readily available
to the public and accordingly, the Executive also agrees that he will not at any time (whether during the Term or after termination
of this Agreement) disclose to anyone (other than his counsel in the course of a dispute arising from the alleged disclosure of
confidential information or as required by law) any confidential information, or utilize such confidential information for his
own benefit, or for the benefit of third parties. The Executive agrees that the foregoing restrictions shall apply whether or not
any such information is marked “confidential” and regardless of the form of the information. The term “confidential
information” does not include information which (i) is or becomes generally available to the public other than by breach
of this provision or (ii) the Executive learns from a third party who is not under an obligation of confidence to the Company or
a client of the Company. In the event that the Executive becomes legally required to disclose any confidential information, he
will provide the Company with prompt notice thereof so that the Company may seek a protective order or other appropriate remedy
and/or waive compliance with the provisions of this Section 8(b) to permit a particular disclosure. In the event that such
protective order or other remedy is not obtained, or that the Company waives compliance with the provisions of this Section
8(b) to permit a particular disclosure, the Executive will furnish only that portion of the confidential information which
he is legally required to disclose and, at the Company’s expense, will cooperate with the efforts of the Company to obtain
a protective order or other reliable assurance that confidential treatment will be accorded the confidential information. The Executive
further agrees that all memoranda, disks, files, notes, records or other documents, whether in electronic form or hard copy (collectively,
the “material”) compiled by him or made available to him during his employment with the Company (whether or
not the material constitutes or contains confidential information), and in connection with the performance of his duties hereunder,
shall be the property of the Company and shall be delivered to the Company on the termination of the Executive’s employment
with the Company or at any other time upon request. Except in connection with the Executive’s employment with the Company,
the Executive agrees that he will not make or retain copies or excerpts of the material; provided that the Executive shall be entitled
to retain his personal files.


 


Nothing in this Agreement
shall prohibit or impede the Executive from communicating, cooperating or filing a complaint with any U.S. federal, state or local
governmental or law enforcement branch, agency or entity (collectively, a “Governmental Entity”) with respect
to possible violations of any U.S. federal, state or local law or regulation, or otherwise making disclosures to any Governmental
Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation, provided that in each
case such communications and disclosures are consistent with applicable law. The Executive understands and acknowledges that an
individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade
secret that is made (x) in confidence to a federal, state, or local government official or to an attorney solely for the purpose
of reporting or investigating a suspected violation of law, or (y) in a complaint or other document filed in a lawsuit or other
proceeding, if such filing is made under seal. The Executive understands and acknowledges further that an individual who files
a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney
of the individual and use the trade secret information in the court proceeding, if the individual files any document containing
the trade secret under seal and does not disclose the trade secret, except pursuant to court order. For purposes of this Agreement,
each of the foregoing communications or disclosures is a “Protected Disclosure.” The Executive does not need
to give prior notice to (or get authorization from) the Company regarding any Protected Disclosure. Except as otherwise provided
in this section or under applicable law, notwithstanding the foregoing, under no circumstance will the Executive be authorized
to disclose any information covered by attorney-client privilege or attorney work product of the Company, or the Company’s
trade secrets, without prior written consent of the Company’s General Counsel or other officer designated by the Company.


 




    	 	10	 



     


    

 


(c)          Remedies;
Acknowledgments. If the Executive commits or threatens to commit a breach of any of the provisions of Sections 8(a)
or (b), the Company shall have the right to have the provisions of this Agreement specifically enforced by any court having
jurisdiction without being required to post bond or other security and without having to prove the inadequacy of the available
remedies at law, it being acknowledged and agreed that any such breach or threatened breach will cause irreparable injury to the
Company and that money damages will not provide an adequate remedy to the Company. In addition, the Company may take all such other
actions and remedies available to it under law or in equity and shall be entitled to such damages as it can show it has sustained
by reason of such breach.


 


The parties acknowledge
that (i) the type and periods of restriction imposed in the provisions of Sections 8(a) and (b) are fair and reasonable
and are reasonably required in order to protect and maintain the proprietary interests of the Company described above, other legitimate
business interests and the goodwill associated with the business of the Company; (ii) the time, scope and other provisions of this
Section 8 have been specifically negotiated by sophisticated commercial parties, represented by legal counsel, and are given
as an integral part of the transactions contemplated by this Agreement; and (iii) because of the nature of the business engaged
in by the Company and the fact that clients can be and are serviced by the Company wherever they are located, it is impractical
and unreasonable to place a geographic limitation on the agreements made by the Executive herein. The Executive specifically acknowledges
that his being restricted from soliciting and servicing Restricted Clients as contemplated by this Agreement will not prevent his
from being employed or earning a livelihood in the type of business conducted by the Company. If any of the covenants contained
in Sections 8(a) and (b), or any part thereof, is held to be unenforceable by reason of it extending for too great
a period of time or over too great a geographic area or by reason of it being too extensive in any other respect, the parties agree
(x) such covenant shall be interpreted to extend only over the maximum period of time for which it may be enforceable and/or over
the maximum geographic areas as to which it may be enforceable and/or over the maximum extent in all other respects as to which
it may be enforceable, all as determined by the court making such determination and (y) in its reduced form, such covenant shall
then be enforceable, but such reduced form of covenant shall only apply with respect to the operation of such covenant in the particular
jurisdiction in or for which such adjudication is made. Each of the covenants and agreements contained in this Section 8
(collectively, the “Protective Covenants”) is separate, distinct and severable. All rights, remedies and benefits
expressly provided for in this Agreement are cumulative and are not exclusive of any rights, remedies or benefits provided for
by law or in this Agreement, and the exercise of any remedy by a party hereto shall not be deemed an election to the exclusion
of any other remedy (any such claim by the other party being hereby waived). The existence of any claim, demand, action or cause
of action of the Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense
to the enforcement by the Company of each Protective Covenant. The unenforceability of any Protective Covenant shall not affect
the validity or enforceability of any other Protective Covenant or any other provision or provisions of this Agreement.


 




    	 	11	 



     


    

 


(d)          Notification
of Restrictive Covenants. Prior to accepting employment with any person, firm or entity during the Restricted Period, the Executive
shall notify the prospective employer in writing of his obligations pursuant to this Section 8 (it being agreed by the Company
that such notification required under this Section 8(d) shall not be deemed a breach of the confidentiality provisions of
this Agreement). Executive may provide a copy of the provisions of this Section 8 to any such prospective employer.


 


(e)          Tolling.
The temporal duration of the covenants set forth in Section 8 of this Agreement shall not expire, and shall be tolled, during
any period in which the Executive is in violation of any such covenants, and all restrictions shall automatically be extended by
the period of the Executive’s violation of any such restrictions.


 


		9.	Intellectual Property



 


During the Term, the
Executive will disclose to the Company all ideas, inventions and business plans developed by him during such period which relate
directly to the business of the Company, including without limitation, any design, logo, slogan, advertising campaign or any process,
operation, product or improvement which may be patentable or copyrightable. The Executive agrees that all patents, licenses, copyrights,
tradenames, trademarks, service marks, planning, marketing and/or creative policies and ideas, advertising campaigns, promotional
campaigns, media campaigns, budgets, practices, concepts, strategies, methods of operation, financial or business projections,
designs, logos, slogans and business plans developed or created by the Executive in the course of his employment hereunder, either
individually or in collaboration with others, will be deemed works for hire and the sole and absolute property of the Company.
The Executive agrees that at the Company’s request and expense, he will take all steps necessary to secure the rights thereto
to the Company by patent, copyright or otherwise.


 


		10.	Additional Covenants; Competitively Sensitive Information



 


(a)          The
Executive acknowledges that: (i) he has received a copy of the Securities Purchase Agreement dated as of March 14, 2019 (as the
same may be amended, supplemented or otherwise modified from time to time, the “SPA”) between the Company and
Stagwell Agency Holdings LLC; and (ii) he understands that he is on the date hereof and, for so long as he is a manager, director,
officer, partner, member, employee or other representative of The Stagwell Group LLC or any of its Affiliates (collectively, “Stagwell”),
he will be a Restricted Person (as defined in the SPA).


 




    	 	12	 



     


    

 


(b)          During
the Term, the Executive agrees that: (i) he will not seek or intentionally receive Competitively Sensitive Information (as defined
in the SPA) relating to Stagwell’s Competitive Portfolio Companies (as defined in the SPA), except in compliance with the
Restricted Persons Procedures, and he will not otherwise take and will use his reasonable best efforts to ensure that Stagwell
will not take any action or fail to take any action that would be inconsistent with the Restricted Persons Procedures; and (ii)
without limiting the generality of the preceding clause (i), and except in compliance with the Restricted Persons Procedures, he
will not participate directly or indirectly in (A) sales, pricing, marketing, procurement or product or service innovation with
respect to any of Stagwell’s Competitive Portfolio Companies; and (B) the sourcing, evaluation, negotiation or implementation
of potential investments or acquisitions for Stagwell or any of its Competitive Portfolio Companies.


 


(c)          During
the Term, the Executive covenants and agrees to restrict his role and responsibilities at Stagwell in any manner required to comply
with the applicable law and the Company’s Related Party Transaction Policy.


 


		11.	Indemnification



 


Subject to Section 124
of the Canada Business Corporations Act (as amended or re-enacted from time to time and including the regulations made pursuant
thereto, the “Act”), the Company shall indemnify and hold harmless, the Executive and his heirs, executors,
administrators and other legal personal representatives (each, an “Indemnitee”), to the maximum extent permitted
by the Act, from and against (a) any liability and all costs, charges and expenses that an Indemnitee sustains or incurs in respect
of any action, suit or proceeding that is proposed, threatened or commenced against an Indemnitee for or in respect of anything
done or permitted by the Executive in respect of the execution of the duties of his office; and (b) all other costs, charges and
expenses that the Executive sustains or incurs in respect of the affairs of the Company. The Company shall also indemnify the Executive
in such other circumstances to the maximum extent as the Act permits or requires. To the extent permitted by the Act, the Company
will advance or reimburse any expenses, including reasonable attorneys’ fees, incurred by an Indemnitee in investigating
and defending any actual or threatened action, suit or proceeding for which an Indemnitee may be entitled to indemnification under
this Section 11.


 


		12.	Enforceability



 


The failure of any party
at any time to require performance by the other party of any provision hereunder shall in no way affect the right of that party
thereafter to enforce the same, or to enforce any of the other provisions in this Agreement; nor shall the waiver by any party
of the breach of any provision hereof be taken or held to be a waiver of any subsequent breach of such provision or as a waiver
of the provision itself.


 




    	 	13	 



     


    

 


		13.	Assignment



 


The Company and the Executive
agree that the Company shall have the right to assign this Agreement in connection with any asset assignment of all or substantially
all of the Company’s assets, stock sale, merger, consolidation or other corporate reorganization involving the Company and,
accordingly, this Agreement shall inure to the benefit of, be binding upon and may be enforced by, any and all successors and such
assigns of the Company. The Company and Executive agree that Executive’s rights and obligations under this Agreement are
personal to the Executive, and the Executive shall not have the right to assign or otherwise transfer his rights or obligations
under this Agreement, and any purported assignment or transfer shall be void and ineffective, provided that the rights of the Executive
to receive certain benefits upon death as expressly set forth under Section 7(a) of this Agreement shall inure to the Executive’s
estate and heirs. The rights and obligations of the Company hereunder shall be binding upon and run in favor of the successors
and assigns of the Company.


 


		14.	Modification



 


This Agreement may not
be orally canceled, changed, modified or amended, and no cancellation, change, modification or amendment shall be effective or
binding, unless in writing and signed by the parties to this Agreement.


 


		15.	Severability; Survival



 


In the event any provision
or portion of this Agreement is determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions
of this Agreement shall nevertheless be binding upon the parties with the same effect as though the invalid or unenforceable part
had been severed and deleted or reformed to be enforceable. The respective rights and obligations of the parties hereunder shall
survive the termination of the Executive’s employment to the extent necessary to the intended preservation of such rights
and obligations.


 


		16.	Notice



 


Any notice, request,
instruction or other document to be given hereunder by any party hereto to another party shall be in writing and shall be deemed
effective (a) upon personal delivery, if delivered by hand, or (b) three (3) days after the date of deposit in the mails, postage
prepaid if mailed by certified or registered mail, or (c) on the next business day, if sent by prepaid overnight courier service
or facsimile transmission (if electronically confirmed), and in each case, addressed as follows:


 


If to the Executive:


 


Mr. Mark Penn


Address as on file with the Company


 


With a copy (which shall not constitute notice)
to:


 


Harris, Wiltshire & Grannis LLP


1919 M Street NW, Eighth Floor


Washington, DC 20036


Attn: Jonathan B. Mirsky


 




    	 	14	 



     


    

 


If to the Company:


 


c/o MDC Partners Inc.


745 Fifth Avenue


New York, NY 10151


Attention: General Counsel 


 


Any party may change the address to which
notices are to be sent by giving notice of such change of address to the other party in the manner herein provided for giving notice.


 


		17.	No Conflict



 


The Executive represents
and warrants that he is not subject to any agreement, instrument, order, judgment or decree of any kind, or any other restrictive
agreement of any character, which would prevent him from entering into this Agreement or which would be breached by the Executive
upon his performance of his duties pursuant to this Agreement.


 


		18.	Entire Agreement; Governing Law



 


This Agreement represents
the entire agreement between the Company and the Executive with respect to the employment of the Executive by the Company. This
Agreement shall be governed by, enforced under, and construed in accordance with the laws of the State of New York.


 


		19.	Withholdings



 


The Company may withhold
from any amounts payable under this Agreement such federal, state or local taxes as shall be required to be withheld pursuant to
any applicable law or regulation.


 


		20.	Counterparts



 


This Agreement may be
executed in two counterparts or by facsimile transmission, both of which taken together shall constitute one instrument.


 


		21.	No Strict Construction



 


The language used in
this Agreement will be deemed to be the language chosen by the Company and the Executive to express their mutual intent, and no
rule of law or contract interpretation that provides that in the case of ambiguity or uncertainty a provision should be construed
against the draftsman will be applied against any party hereto.


 




    	 	15	 



     


    

 


		22.	409A Compliance



 


This Agreement is intended
to comply, to the extent applicable, with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)
and will be so interpreted. For purposes of this Agreement, a termination of Executive’s services on the date of termination
shall be determined in a manner consistent with the rules relating to “separation from service” within the meaning
of Section 409A of the Code and the regulations thereunder. Notwithstanding anything herein to the contrary, (i) if on the date
of termination Executive is a “specified employee” as defined in Section 409A of the Code, and the deferral of the
commencement of any payments or benefits otherwise payable hereunder as a result of such termination the Agreement is necessary
in order to prevent the imposition of any accelerated or additional tax under Section 409A of the Code, then the Company will (A)
defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits
ultimately paid or provided to Executive) until the date that is six months following the date of termination (or the earliest
date as is permitted under Section 409A of the Code), and (B) add to such payment or benefit an interest payment for the six-month
period calculated using the short-term Applicable Federal Rate (monthly compounded) as in effect on the date of termination under
Section 1274(d) of the Internal Revenue Code and (ii) if any other payments of money or other benefits due to the Executive hereunder
could cause the application of an accelerated or additional tax under Section 409A of the Code, the parties agree to restructure
the payments or benefits to comply with Section 409A of the Code in a manner which does not diminish the value of such payments
and benefits to the Executive. To the extent any reimbursements or in-kind benefits due to the Executive under this Agreement constitute
“deferred compensation” under Section 409A of the Code, any such reimbursements or in-kind benefits shall be paid in
a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv). If under this Agreement, an amount is paid in two or more installments,
each installment shall be treated as a “separate payment” within the meaning of 409A of the Code.


 


*                    *                    *                    *                    *


 




    	 	16	 



     


    

 


IN WITNESS WHEREOF,
the parties have executed this Employment Agreement as of the day and year first above written.


 


	 	MDC PARTNERS INC.


 


	 	By: 	 
	 	 	Name:  Mitchell Gendel
	 	 	Title:    General Counsel
	 	 
	 	By: 	 
	 	 	Mark Penn




 




    	 	17