Document:

AMENDMENT TO HAUPT EMPLOYMENT AGREEMENT

 

EXHIBIT 4.5

AMENDMENT (THE “AMENDMENT”) TO CEO EMPLOYMENT AGREEMENT

ENTERED INTO AS OF JANUARY 1, 2001 BETWEEN ROGER A. HAUPT AND

BCOM3 GROUP, INC.,

LEO BURNETT WORLDWIDE, INC. AND LEO BURNETT USA, INC.

(THE “AGREEMENT”)

     The Agreement shall hereby be amended as follows:

     1. Publicis Groupe S.A. shall become a party to the Agreement, effective
at the date of this Amendment. “Publicis Groupe S.A.” shall be added to the
first sentence of the Agreement , and, except as specifically provided below,
all references in the Agreement to “Bcom3 Group, Inc.” and “Bcom3” shall be
changed to “Publicis Groupe S.A.” as successor to Bcom3. In paragraph 1(c),
the reference to “Bcom3” shall be changed to “the Company.” References to the
“Bcom3 Stock Purchase Agreement” shall not be changed.

     2. Philadelphia Merger Corp., the entity into which Bcom3 Group, Inc. was
merged, shall be a party to the Agreement, and its name shall be added to the
first two paragraphs of the Agreement after “(‘LBW’)” and “LBW,” respectively.

     3. Except as specifically provided below, all references in the Agreement
to “Chief Executive Officer” or “CEO” shall be changed to “Chief Operating
Officer and Member of the Directoire” and, in paragraph 5(d)(i), reference to
“CEO of the ultimate parent company of a group of operating companies” shall
be changed to “Chief Operating Officer and Member of the Directoire of
Publicis Groupe S.A.” Notwithstanding the foregoing, the Executive shall have
the right to use the title “President and Chief Operating Officer” within the
United States.

     4. Paragraph 2(b) of the Agreement shall be deleted in its entirety and
replaced with the following:

	 	 	“The Executive shall report to the Chairman of the Directoire of Publicis
Groupe, S.A. The Executive shall be in charge of the following
businesses, and the Chief Executive Officers of such businesses shall
report directly to him: (i) Media Operations (Starcom MediaVest Group,
Zenith Optimedia Group); (ii) Publicis Healthcare Group (Nelson, Medicus,
THG, Klemtner); and (iii) SAMS. In addition, the Executive will be in
charge of the global IT function, and the Chief Information Officer of
Publicis Groupe S.A. shall report directly to him. The Chief Financial
Officer of Publicis Groupe S.A., who has global responsibility for Shared
Service Centers, shall work with the Executive with respect to the Shared
Service Center in the United States. The Executive will submit to the
Chairman of the Management Board his proposed strategies, budgets and
action plans for the units and functions reporting to him. Once the
strategies, budgets and action plans shall have been agreed upon, the
Executive shall work directly with the corporate staff of Publicis Groupe
S.A. on their implementation, keeping the Chairman of the Management
Board informed of progress and developments on a regular basis.”

     5. The following proviso shall be added at the end of paragraph 3(b) of
the Agreement: “; provided that, notwithstanding the foregoing, (i) the
Executive’s bonus to be paid for the year 2003 shall be not less than
$950,000, and (ii) the Executive’s bonus to be paid for the

 

 

year 2004 shall be not less than 100% of his salary for 2004 and shall be
agreed upon by the Company and the Executive no later than September 30,
2003.”

     6. In paragraph 3(f)(ii) of the Agreement, the reference to Arthur
Andersen LLP shall be changed to Ernst & Young, LLP and the defined term “AA”
shall be changed to “E&Y.” All references in the Agreement to “AA” shall be
changed to “E&Y.”

     7. A new paragraph 3(i) shall be added following paragraph 3(h) of the
Agreement and shall read as follows:

	 	 	“(i) All payments to the Executive (or his estate) made under the
Agreement will be treated by the Company and the Executive (or his
estate) as U.S. source income and shall be subject to such withholding as
is required by applicable U.S. federal, state and local tax law.”

     8. The first sentence of paragraph 5 of the Agreement shall be deleted in
its entirety and replaced by the following:

	 	 	“For purposes of this Agreement, the “Employment Term” shall be, unless
sooner terminated in accordance with the provisions of this Agreement,
the period from the date of this Agreement until December 31, 2004 (the
“End Date”), at which time the Executive’s employment shall terminate
unless no later than June 30, 2004 the parties agree in writing to extend
the Employment Term. The Executive nevertheless shall have the right to
terminate his employment on December 31, 2003 (the “Interim Date”),
provided that the Executive provides a Notice of Termination to the
Company by no later than September 30, 2003. If the Executive provides
this notice, the Company will not dispute his decision or attempt to
renegotiate the terms but will cooperate in effecting his departure.”

     9. Paragraph 5(c) of the Agreement shall be deleted in its entirety and
shall be replaced with the words “[Intentionally Left Blank]”.

     10. Paragraph 5(d)(ii) of the Agreement shall be deleted in its entirety
and shall be replaced with the words “[Intentionally Left Blank]”.

     11. At the end of paragraph 5(d) of the Agreement shall be added the
following sentence, “The Company and the Executive agree that the Executive
shall not have “Good Reason” to terminate the Executive’s employment hereunder
by virtue of consummation, prior to the date of this Amendment, of the
transactions contemplated by the Agreement and Plan of Merger among Publicis
Groupe S.A., Philadelphia Merger Corp., Philadelphia Merger LLC and Bcom3
Group, Inc. dated as of March 7, 2002 (the “Merger Agreement”), by virtue of
entering into this Amendment or by virtue of the Company taking any action to
implement this Amendment in accordance with its terms.

     12. Paragraph 5(e) of the Agreement shall be deleted in its entirety and
shall be replaced with the words “[Intentionally Left Blank]”.

     13. The parenthetical at the end of the second sentence of paragraph 5(f)
of the Agreement shall be deleted in its entirety.

2

 

     14. The last sentence of paragraph 5(g) of the Agreement shall be deleted
in its entirety and replaced with the following: “If the Executive does not
give notice, the Company will not dispute his decision or attempt to
renegotiate the terms but will cooperate in effecting his departure.”

     15. The second sentence of paragraph 5(i) of the Agreement shall be
deleted in its entirety.

     16. The last sentence of paragraph 5(j) of the Agreement shall be deleted
in its entirety.

     17. The phrase “and the BCOM3 Stock Purchase Agreement” in the
parenthetical in the first paragraph of paragraph 6 of the Agreement shall be
deleted in its entirety and the phrase “and any severance plan, policy or
program maintained by Publicis Groupe S.A. or any of its subsidiaries” shall
be added in the same paragraph following the phrase “the LBU standard
severance policy or practice” and prior to the colon.

     18. The following clause shall be added as a new subparagraph (v)
following subparagraph (iv) of paragraph 6(a) of the Agreement:

	 	 	“(v) The entire account balance of the Executive under the Bcom3 Group,
Inc. CEO Deferred Bonus Plan and any other bonus deferral plan or
arrangement in which the Executive has participated.”

     19. Paragraph 6(b) of the Agreement shall be deleted in its entirety and
shall be replaced with the words “[Intentionally Left Blank]”

     20. In paragraph 6(c) of the Agreement, both the introductory clause and
the paragraph entitled “Payments” shall be deleted in their entirety and shall
be replaced with the following:

	 	 	“In the case of any of the following, namely (i) termination by the
Company of the Executive’s employment for any reason or for no reason and
whether with or without cause, (ii) termination by the Executive for Good
Reason, (iii) termination because of Death or Permanent Disability or
Retirement, or (iv) in the event that the Executive’s employment
terminates on the End Date or the Interim Date as provided in paragraph
5, then, in any such case:
	 
	 	 	“Payment: In addition to the payments described in (a) above, the Company
will pay to the Executive or to his estate a lump sum payment of
$4,750,000 (which amount the parties agree represents two times the sum
of (A) the Executive’s annual base salary as of the Date of Termination,
which is $950,000, and (B) the highest actual bonus paid to the Executive
in any one of the four years prior to the year in which the Date of
Termination occurs, which the parties agree was $1,425,000). Such lump
sum payment shall be made on the first or second business day following
the Date of Termination.
	 
	 	 	“No such payment shall be reduced by any amount the Executive may earn or
receive from employment or other source after the Termination Date.
Executive shall have no

3

 

	 	 	obligation to seek other employment or otherwise to mitigate the
Company’s payment obligations.

	 	 	“In addition to such lump sum payment, the Company shall make such
additional Gross-Up Payment, if any, as is provided by paragraph 3(f).
	 
	 	 	“In consideration of the Executive’s entering into this Amendment and
thereby foregoing the right to obtain a substantially higher lump sum
payment from the Company incident to the Merger Agreement and the related
change in control, the Company, on behalf of itself and each of its
subsidiaries and affiliates, agrees that none of them will have any
direct or indirect claim (by offset or otherwise) against such lump sum
payment, and that neither the Company nor any such entity shall impose
any defense or excuse to payment, or bring any proceeding to attempt to
prevent such lump sum payment, regardless of the circumstances of the
Executive’s termination of employment, any breach or alleged breach by
the Executive of the Agreement or of any Company policy, or any other
fact or circumstance.
	 
	 	 	“Notwithstanding the foregoing provisions of this subparagraph captioned
“Payment,” the Company shall not be required to make such lump sum
payment in the event that, prior to the time such payment becomes due,
the Executive has been criminally convicted under the laws of the United
States or any state thereof of a felony involving dishonesty or fraud
perpetrated against the Company.”

     21. The paragraphs entitled “Benefits” and “Vesting” in paragraph 6(c) of
the Agreement shall not be affected by this Amendment. The paragraph entitled
“Stock” in paragraph 6(c) of the Agreement shall be deleted in its entirety.

     22. Paragraph 6(d) of the Agreement shall be deleted in its entirety and
shall be replaced with the following:

	 	 	“To avoid any doubt, except as specifically provided in this Agreement,
the Executive continues to be subject to the restrictive covenants of the
Bcom3 Stock Purchase Agreement.”

     23. References to “the then Chief Executive Officer of BCOM3” in
paragraph 7(c)(i)(C) and at the end of paragraph 7(c)(ii) of the Agreement
shall be changed to “the then Chief Executive Officer of Publicis Groupe S.A.”

     24. The penultimate sentence of subparagraph 7(c)(iii) of the Agreement
shall be deleted in its entirety and replaced with the following: “Nothing in
this subsection (iii) shall be construed as preventing the Company from
pursuing any and all other remedies available to it for breach of covenants
made in this paragraph 7(c), including (subject to the provisions of paragraph
6(c)) the recovery of money damages from the Executive.”

     25. The exception in the second sentence of paragraph 11 of the Agreement
shall be deleted in its entirety.

4

 

     26. Paragraph 15 of the Agreement shall be amended to provide that
notices to the Company shall be sent to:

	 	 	 
	 

	 	Publicis Groupe S.A.
	

	 	133, avenue des Champs-Elysées
	

	 	75008 Paris, France
	 
	 	 
	

	 	Attention: General Secretary

     27. The first sentence of paragraph 20 of the Agreement shall be deleted
in its entirety and shall be replaced by the following: “Executive is or
shall become subject to all Company employee and executive plans and
agreements including, without limitation, the Conflict of Interest policy (as
it existed prior to the closing under the Merger Agreement) and Bcom3’s Stock
Purchase Agreement (restrictive covenants only).”

     28. Paragraph 22 of the Agreement shall be amended in its entirety to
read as follows:

	 	 	“Obligation of the Company: Each of Publicis Groupe S.A., LBW,
Philadelphia Merger Corp. and LBU shall be jointly and severally liable
to the Executive for all obligations of the Company or any of Publicis
Groupe S.A., LBW, Philadelphia Merger Corp. or LBU under this
Agreement.”

     29. A new paragraph 23 shall be added to the Agreement which shall read
as follows:

	 	 	“Announcements: The Company and the Executive will jointly approve any
public or internal announcements by the Company or its affiliates with
respect to the Executive, his role or changes in his role or the
termination of his employment. All other statements and comments will be
consistent with the approved announcements.”

     30. Except as expressly otherwise provided in this Amendment, all other
provisions of the Agreement shall remain in force and effect.

     IN WITNESS WHEREOF, the Executive has hereunto set his hand, and the
Company has caused these presents to be executed in its name and on its behalf,
on this 26th day of March 2003.

	 	 	 
	PUBLICIS GROUPE S.A.
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	/s/ Maurice Lévy

	 	/s/ Roger A. Haupt

	Maurice Lévy

	 	Roger A. Haupt
	Président du Directoire
	 	 

5

 

	 	 	 
	LEO BURNETT WORLDWIDE, INC.
	 	 
	 
	 	 
	 
	 	 
	/s/ Maurice Lévy                                                                                            
]

	 	 
	 
	 	 
	PHILADELPHIA MERGER CORP.
	 	 
	 
	 	 
	/s/ Maurice Lévy

	 	 

6AGREEMENT, DATED SEPTEMBER 7, 2000

 

EXHIBIT 4.6

AGREEMENT, made with effect from September 7, 2000 for the period of five (5)
years by and between SAATCHI & SAATCHI NORTH AMERICA, INC., a Delaware
corporation (hereinafter sometimes called the “Company”), with offices at 375
Hudson Street, New York, New York 10014, and KEVIN ROBERTS, residing at 57
Portland Road, Auckland, New Zealand (hereinafter sometimes called the
“Executive”)

WITNESSETH

WHEREAS, the Company wishes to employ the Executive, the Executive wishes to be
employed by the Company, on the terms and conditions herein contained;

WHEREAS, the Company is aware that the Executive has entered into (a) an
employment contract with Red Rose Limited whereby Mr. Roberts will provide
personal services to Red Rose Limited on an exclusive basis while he is outside
the United States for not less than 27 weeks inclusive of holidays in any 12
month period;

NOW, THEREFORE, in consideration of the premises and the covenants and
agreements herein set forth, and of other good and valuable consideration,
receipt of which is hereby acknowledged, the parties hereto agree as follows:

First:

The Company shall employ the Executive and the Executive shall serve the
Company during the Term of Employment (as defined below) in the capacity of
Chief Executive Officer of its Affiliate, Saatchi & Saatchi Worldwide, Inc. (a
Delaware corporation) (Saatchi & Saatchi Worldwide”) and shall have operational
and management responsibility of the Saatchi & Saatchi group subject to
Publicis Groupe SA’s (hereinafter sometimes referred to as the “Parent”)
Articles of Association, Essential Principles and Values, Saatchi Corporate
Guidelines and the strategy established by the Parent’s Directoire. The
Executive’s line of reporting shall be to Maurice Lévy and the Parent’s
Directoire and the Executive shall have a seat on the Parent’s Directoire for
the period of four (4) years.

Second:

A. Except as set out below the “Term of Employment” shall continue for five (5)
years from the date this Agreement takes effect being September 7, 2000.

B. The Term of Employment shall be terminable by the Company at an earlier date
based upon: (a) the death of Executive; (b) Executive’s total disability
lasting a period of 180 consecutive days; or (c) Cause. As used herein “Cause”
shall mean only:

	 	(a)	 	Executive’s willful failure or refusal, after written notice
thereof, to perform directives of the Directoire of the Parent when
such directives are consistent with the scope and nature of
Executive’s duties and responsibilities as set forth in paragraphs
First and Third hereof;
	 
	 	(b)	 	Material dishonesty of Executive affecting the Parent,
Company, Saatchi & Saatchi Worldwide or any of their Affiliates;

 

 

	 	(c)	 	Drunkenness or use of drugs which interferes with the
performance of Executive’s obligations under this Agreement,
continuing after warning;
	 
	 	(d)	 	Executive’s conviction of a felony or of any crime involving
moral turpitude, fraud or misrepresentation;
	 
	 	(e)	 	Any gross or willful conduct of the Executive resulting in
substantial loss to the Parent, Company, Saatchi & Saatchi Worldwide
or any of their Affiliates, substantial damage to the Parent’s,
Company’s, Saatchi & Saatchi Worldwide’s or any of their Affiliates’
reputation; or theft or defalcation from the Parent, Company,
Saatchi & Saatchi Worldwide or any or their Affiliates;
	 
	 	(f)	 	Any material breach (not covered by any of clauses (a)
through (e) above) of any of the provisions of this Agreement if
such breach is not cured within 30 days after notice thereof to
Executive. Any act or failure to act by the Executive which is
done, or omitted to be done, by him in good faith and for a purpose
which he reasonably believed to be in the best interests of the
Parent, Company, Saatchi & Saatchi Worldwide or any of their
Affiliates, or in order to comply with applicable law, shall not be
deemed to be willful.

	 	 	 
	C.1.

	 	In the event that, within two (2) years of a Change in Control (as
defined in paragraph Second C.2, below), the Company terminates the Term
of Employment or, alternatively, the Executive terminates the Term of
Employment forthwith and without prior notice within two (2) years of a
Change in Control (as defined in paragraph Second C.2 below) for Good
Reason (as defined in paragraph Second D.2), the Company shall except
where such termination is effected by reason of (a) the death of the
Executive; (b) the Executive’s total disability lasting a period of 180
consecutive days; or (c) Cause (as defined in paragraph Second B above):

	 	(a)	 	pay to the Executive (subject to deduction of applicable
taxes) a lump sum in cash equivalent to the aggregate of:

	 	(i)	 	12 months’ Salary (at the rate in effect at the
end of the Term of Employment); and
	 
	 	(ii)	 	a sum equal to the cost the Company would have
incurred in providing the Executive with the benefits provided
under paragraphs Fourth C and Fourth G as if the Executive’s
employment had continued for a period of 12 months following
the date of the end of the Term of Employment, and

	 	(b)	 	pay to the Executive any Bonus(es) due to him pursuant to
paragraph Fourth B in respect of the period prior to the date of the
end of the Term of Employment together with an amount equal to the
Bonuses that the Executive would have received had he remained
employed for a further 12 months following the date of the end of
the Term of Employment on the basis that:

	 	(i)	 	the Executive would have achieved a target Bonus
of 100% of his Salary (at the rate in effect at the end of the
Term of Employment); and

2

 

	 	(ii)	 	Bonus entitlements, for the purposes of this
paragraph Second C.1, accrue pro rata from day to day in
respect of any part calendar year prior to the date of the end
of the Term of Employment and prior to the end of such 12
month period.

	 	 	 
	C.2

	 	“Change in Control” shall, for the purposes of this Agreement, mean:

	 	(a)	 	the acquisition by any person (excluding Somarel SA),
together with any person “acting in concert” with that person
(pursuant to French law), of shares (which together with any shares
previously held by that person or (where applicable) those persons
acting in concert) carrying more than fifty percent (50%) of the
voting rights at general meetings of the Parent;
	 
	 	(b)	 	during any period of two consecutive years beginning on or
after Completion (as defined below), individuals who at the
beginning or such period constitute members of the Conseil de
Surveillance of the Parent and any new member (other than a member
designated by a person described in paragraph Second C.2(a) above)
whose election by the Conseil de Surveillance or nomination for
election by the Parent’s shareholders was approved by a vote of at
least two-thirds (2/3) of the members then still in office who
either were members at the beginning of the period or whose election
or nomination for election was previously so approved (unless the
approval of the election or nomination for election of such new
directors was in connection with an actual or threatened election or
proxy contest), cease for any reason to constitute at least a
majority thereof;
	 
	 	(c)	 	the shareholders of the Parent approve a merger or
consolidation of the Parent with any other company (excluding
Somarel SA), other than:

	 	(i)	 	a merger or consolidation which would result in
the voting shares of the Parent outstanding immediately prior
thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of
the surviving entity) more than fifty percent (50%) of the
combined voting power of the voting securities of the Parent
or such surviving entity outstanding immediately after such
merger or consolidation; or
	 
	 	(ii)	 	a merger or consolidation effected to implement a
recapitalization of the Parent (or similar transaction) in
which no “person” (as defined above in paragraph Second C.2(a)
above) acquires more than fifty percent (50%) of the combined
voting power of the Parent’s then outstanding securities; or

	 	(d)	 	the shareholders, the Directoire or the Conseil de
Surveillance of the Parent approve a plan of complete liquidation of
the Parent or an agreement for the sale or disposition outside the
Parent’s group by the Parent of North American assets representing
the North American assets of Saatchi & Saatchi plc as they were
immediately prior to the date of Completion substantially as a whole
or assets representing at least fifty percent (50%) of the overall
assets of Saatchi & Saatchi plc

3

 

	 	 	 	as they were immediately prior to the date of Completion or any
transaction having a similar effect.

	 	 	 
	C.3.

	 	“Completion” shall for the purposes of this Agreement mean 7 September 2000.
	 
	 	 
	C.4.

	 	The amounts payable pursuant to paragraph Second C.1 shall be in lieu of any notice or other benefits or
payments to which the Executive may otherwise be entitled under this Agreement or pursuant to any
severance plan or policy maintained by the Company and the Executive shall not, on termination of his
employment with the Company pursuant to this paragraph Second C.1 be entitled to payment pursuant to any
such plan or policy.
	 
	 	 
	D.1

	 	in the event that the Executive terminates his employment for Good Reason (as defined below) or if the
Company terminates the Executive’s employment for any reason other than Cause, and except where such
termination is affected (a) by reason of the death of the Executive; (b) by reason of the Executive’s
disability lasting a period of 180 consecutive days; (c) pursuant to paragraph Second C.1; or (d) by
service by the Company of notice of termination on the Executive in accordance with paragraph Second A,
the Company shall maintain benefits as contemplated in paragraph Second D.3 below and shall pay to the
Executive all unpaid amounts payable under paragraphs Fourth B or Fourth C for the year of termination and
any prior period plus a sum equal to the bonuses which the Executive would have received in accordance
with paragraph Fourth B had he remained in service for an additional year of service following the
termination of the Term of Employment on the basis that the Executive’s target bonus (as at the date the
Term of Employment ends) is achieved in respect of such additional years service plus a sum equal to 100%
of the Executive’s current Salary, two thirds (2/3) of the aggregate of such sums shall be payable in a
lump sum within ten (10) days after the end of the Term of Employment and one-third (1/3) of which shall
be payable in installments over a period of six (6) months, commencing at the end of the Term of
Employment, in accordance with the Company’s normal payroll practices (such installment amounts
hereinafter referred to as Installment Payments), provided, however, that: (i) if the Executive
materially breaches any of the covenants contained in paragraphs Fifth and Sixth, and does not cure such
breach within ten (10) days after written notice from the Company specifically identifying such breach,
then the Company may defer any Instalment Payment to be made after such breach provided, and only so long
as, the Company is actively prosecuting an action against the Executive in a court of competent
jurisdiction (as provided in paragraph Eleventh) to enforce the provisions of paragraph Fifth and, (x) if
a court of competent jurisdiction ultimately determines that such breach occurred, then the Executive
shall forfeit all rights to such Instalment Payments and (y) otherwise, the Company shall pay all such
amounts to the Executive, together with interest at the New York statutory judgment rate from the date of
deferral, within ten (10) days after such court’s decision or abandonment or withdrawal of the Company’s
action; and (ii) the Company shall have the right to offset, on a dollar-for-dollar basis the amount or
value of any income or remuneration whether in cash or in kind which is paid to the Executive for any
employment or engagement during or in respect of the period that Instalment Payments are payable
hereunder, against payments of Instalment Payments under this Agreement. The Executive shall use his best
efforts to seek employment or engagement after the termination of his employment in the event that he is
entitled to Instalment Payments under this sub-

4

 

	 	 	 
	

	 	paragraph Second D.1. Upon request, the Executive shall provide to the Company a list of all employment and engagement secured by
the Executive during the period that Instalment Payments are payable hereunder.

	 	 	 
	D.2.

	 	The Executive may terminate the Term of Employment for Good Reason. For purposes of this Agreement, the
term “Good Reason” shall mean and shall be deemed to exist only if, without the prior written consent of
the Executive:

	 	(a)	 	the Executive is assigned duties or responsibilities that are
inconsistent in any material respect with the scope of the duties or
responsibilities associated with his titles or positions, as set
forth in this Agreement (or to which he is promoted);
	 
	 	(b)	 	the Executive’s duties or responsibilities are significantly
altered or there is a change in his line of reporting;
	 
	 	(c)	 	benefits to which the Executive is entitled under the
employee benefit plans of the Company are in the aggregate
decreased, unless such decrease is required by law or is applicable
to all employees of the Company eligible to participate in any plan
so affected, not just those covered by employment agreements with
the Company;
	 
	 	(d)	 	the Company fails to make any payment required hereunder when
due or to provide other benefits or perquisites as specified in this
Agreement and does not cure any such failure within ten (10) days
after written notice thereof from the Executive specifically
identifying such failure, or the Company falls to substantially
perform any other material term of provision of this Agreement;
	 
	 	(e)	 	the Executive’s North American office location is relocated
outside the New York area;
	 
	 	(f)	 	the Company fails to obtain the full assumption of this
Agreement by a successor entity; or
	 
	 	(g)	 	in the event that the Executive is elected to the Company’s
Board of Directors or the Parent’s Directoire, he is not re-elected
to the end of the Executive’s Term of Employment thereto or is
forced to resign therefrom for any reason other than Cause.

	 	 	 
	D.3.

	 	if the Company terminates the Executive’s employment for any reason other
than Cause or the Executive terminates his employment for Good Reason, and
except where such termination is effected (a) by reason of the death of
the Executive; (b) by reason of the Executive’s disability lasting a
period of 180 consecutive days; (c) pursuant to paragraph Second C.1; or
(d) by service by the Company of notice of termination on the Executive in
accordance with paragraph Second A, the company shall continue to provide
the Executive (and his eligible dependents, if any) with group health and
life insurance benefits and long-term disability insurance coverage (or
the economic equivalent thereof) and the benefits referred to in paragraph
Fourth G in effect on the date of termination for the twelve month period
following such date; provided, that such coverage shall be reduced

5

 

	 	 	 
	

	 	or terminated if the Executive is employed by another employer within such
twelve month period, but only to the extent that such employer maintains
benefit plans with substantially similar coverage and provided further that,
the date of the expiration of the extended period of coverage provided under
this clause shall be treated as the date of the termination of the Executive’s
employment solely for the purpose of determining the rights of the Executive
(and his dependents, if any) to the continuation coverage provided under
Section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”).

	 	 	 
	D.4.

	 	The provisions of paragraphs Second D.1 to Second D.3
shall be in lieu of, and shall supersede, the
provisions of any severance pay plan or policy
maintained by the Company and/or any of its
subsidiaries or any obligation on the Company to give
notice of termination of employment to the Executive,
and the Executive shall not, on termination of his
employment with the Company be entitled to payment
pursuant to any such plan or policy or in lieu of any
such period of notice of termination.
	 
	 	 
	E.

	 	in the event that the Employment Agreement between the Executive and Red
Rose Limited is terminated, pursuant to the terms of his employment
contract with Red Rose Limited, then, unless the parties agree otherwise,
his agreement (excluding paragraph Fifth) shall be deemed to terminate at
the same time as such employment contract and for the same reason and as
if such terms in that employment contract had been set out in full in this
employment contract, with any necessary modifications.

Third:

     At all times during which the Executive is in the employ of the Company,
the Executive shall devote directly or indirectly his best efforts, attention
and full time to the business and affairs of the Parent, the Company, Saatchi &
Saatchi Worldwide, and their affiliates up to 25 weeks inclusive of holidays in
any 12 month period (or pro-rata for shorter periods) and shall perform such
duties and responsibilities which are not inconsistent with his position
hereunder as may be assigned to him by Saatchi & Saatchi Worldwide from time to
time, and he will diligently, competently and faithfully render his services to
Saatchi & Saatchi Worldwide and its Affiliates in the capacity in which he is
so employed. The Executive shall have specific responsibility for the
following Functions of the Saatchi & Saatchi Worldwide Network: Creative,
Worldwide Accounts, New Business, Finance, Public Relations, Operations, and
Human Resources. The Executive shall draw support from and participate in the
decisions of the Parent in the areas of Finance, Investor Relations, Public
Relations, Legal, Corporate Secretary, Media, Group Strategy and Merger and
Acquisitions matters, it is envisioned that there will be an Operating
Committee and a Worldwide Board for the Saatchi & Saatchi Worldwide Network,
which the Executive will chair.

Fourth:

During the Term of Employment:

     A. The Company shall pay the Executive, and the Executive shall accept, a
salary (the “Salary”) at the rate of at least US$432,000 per annum, payable in
accordance with the

6

 

Company’s standard payroll practices in effect at such time as the Salary
is paid. The Salary will be reviewed annually but shall not decrease.

B. The Executive shall have the opportunity to earn an annual performance bonus
under the terms of the Parent’s or the Company’s bonus scheme from time to time
in force under which the Executive shall be entitled to 100% of his salary
under clause Fourth A above (as amended from time to time) for on target
performance and shall be entitled to such percentage exceeding 100% of his
salary under clause Fourth A above (as amended from time to time) as agreed
between the Parent or the Company and the Executive for over target performance
(the “Bonus”) in respect of the Executive’s employment for each 12 month period
following 31 December 2000 (for the period from the date of Completion to
December 31, 2000 the Executive shall be entitled to the Bonus of 100% pro
rated for the days in that period as they relate to the days in that year and
for the period 1 January 2000 to the date of Completion the Executive shall be
entitled to the Bonus of 70% pro rated for the days in that period as they
relate to the days in that year) such bonus to be paid on or before 31 March of
the year following the 12 month period to which the bonus relates and its
estimated quantum shall be notified to the Executive not later than 28 February
of the year following the 12 month period to which the bonus relates.

C. It is recognized that the Parent will implement, and the Executive shall be
invited to participate in, share based incentive plans no less favorable than
the Saatchi & Saatchi 2000 Equity Participation Plan and the Saatchi & Saatchi
2000 Performance Share Option Scheme. Where such share based incentive plans
are not implemented such that the benefit to the Executive is less than what
the Executive would have received had such share based incentive plans been
implemented then the Executive shall be financially compensated that amount.

D. The Executive shall be reimbursed for his annual membership fees and dues at
one country club and one luncheon club in New York City.

E. The Executive shall be entitled to four (4) weeks’ paid vacation leave in
each calendar year.

F. The Executive shall be eligible to participate in those benefit plans which
the Company shall make available to its employees generally, and those which it
shall make available to its senior executive officers generally, according to
the terms of said plans.

Fifth:

The Executive agrees that he will not divulge to anyone (other than the Parent,
Company, Saatchi & Saatchi Worldwide and their Affiliates or any persons
employed or designated by the Parent, Company or Saatchi & Saatchi Worldwide or
in connection with the Executive’s duties hereunder) any knowledge or
information of any type whatsoever of a confidential nature relating to the
business of the Parent, Company, Saatchi & Saatchi Worldwide, or any of their
Affiliates, or Clients including, without limitation, all types of trade
secrets (unless readily ascertainable from public or published information or
trade sources). The Executive Further agrees not to disclose, publish or make
use of any such knowledge or information of a confidential nature without the
prior written consent of the Company. The provisions of this paragraph

7

 

Fifth shall apply both during the time that the Executive is employed by the
Company and thereafter.

Sixth:

The notice provisions of paragraph Second of this Agreement shall be in lieu
of, and shall supersede, the provisions of any severance pay plan or policy
maintained by the Company and, the Executive shall not, on termination of his
employment with the Company, be entitled to payment pursuant to any such plan
or policy. However, if the termination of his employment with the Company is
based upon the ground set forth in paragraph Second C.1 hereof nothing in this
paragraph Seventh shall prevent the payment to the Executive of any severance
to which Executive may be entitled under such paragraph Second C.1.

Seventh:

     The failure of either party to enforce any of the provisions of this
Agreement shall not be deemed a waiver thereof. No provisions of this
Agreement shall be deemed to have been waived or modified unless such waiver or
modification shall be in writing and signed by the parties hereto.

Eighth:

This Agreement shall be read in conjunction with the Consultancy Agreement
entered into between Saatchi & Saatchi North America, Inc., Saatchi & Saatchi
Limited and Red Rose Limited dated as of September 7, 2000. This Agreement
shall be binding upon the parties hereto, their heirs, executors,
administrators, successors and assigns.

Ninth:

	 	 	 
	A.

	 	Any notice to be given concerning this Agreement shall be given in
writing and either (i) sent by certified or registered mail postage
prepaid; (ii) sent by reputable overnight courier service; or (iii) hand
delivered to the recipient personally. In the case of notice sent by mail,
the date of the giving of the notice shall be deemed to be: (i) the date
of the postmark if postmarked by the United States Postal Service; or (ii)
the date of actual receipt if not postmarked by the United States Postal
Service. In the case of notice being sent by overnight courier service,
the date of the giving of the notice shall be deemed to be the date said
notice was given to the courier service as indicated by the records of
such courier service. In the case of notice being hand delivered a written
dated receipt shall be delivered to Saatchi & Saatchi Worldwide’s chief
financial officer personally. Notice by mail or courier service shall be
sent as follows:

	 	 	 	 	 
	 

	 	if to Executive:
	 	Kevin Roberts
	

	 	 	 	57 Portland Road
	

	 	 	 	Auckland, New Zealand

8

 

	 	 	 	 	 
	

	 	With a copy to:
	 	Red Rose Limited
	

	 	 	 	2nd Floor
	

	 	 	 	125 The Strand
	

	 	 	 	Parnell
	

	 	 	 	Auckland, New Zealand
	 
	 	 	 	 
	

	 	If to the Company:
	 	Saatchi & Saatchi Worldwide, Inc.
	

	 	 	 	375 Hudson Street
	

	 	 	 	New York, NY 10014
	

	 	 	 	Attention: Chief Financial Officer
	 
	 	 	 	 
	

	 	With copies to:
	 	Publicis Groupe SA.
	

	 	 	 	133 avenue des Champs Elysées
	

	 	 	 	75008 Paris
	

	 	 	 	France
	

	 	 	 	Attn: Président du Directoire
	 
	 	 	 	 
	

	 	 	 	Publicis Groupe S.A.
	

	 	 	 	133 avenue des Champs Elysées
	

	 	 	 	75008 Paris
	

	 	 	 	France
	

	 	 	 	Attn: Chief Financial Officer
	 
	 	 	 	 
	

	 	 	 	Gould & Wilkie
	

	 	 	 	One Chase Manhattan Plaza
	

	 	 	 	New York, New York 10005
	

	 	 	 	Attn: Michael J. Kopcsak, Esq.

     B. By giving notice to the other party, either party may, from time to
time, designate (i) a different address to which notice by mail or courier
service to such party shall be sent and/or (ii) a different person to receive
notice.

Tenth:

     This Agreement shall be deemed made under and shall be governed by the
substantive laws of the State of New York, excluding its conflict of law rules.

Eleventh:

     This Agreement constitutes the entire understanding among the parties
hereto as to the subject matter covered herein, and all prior understanding and
agreements are merged herein and succeeded hereby.

9

 

IN WITNESS WHEREOF the parties hereto have duly executed this Agreement on the
day and year first above set forth.

SAATCHI & SAATCHI NORTH AMERICA, INC.

/s/ William H. Cochrane

KEVIN ROBERTS

/s/ Kevin Roberts

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]