Document:

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                                                                   Exhibit 10.17

                             EMPLOYMENT AGREEMENT

     AGREEMENT, dated as of March 1, 1993, between BSMG WORLDWIDE, INC.
(FORMERLY BOZELL SAWYER MILLER GROUP, INC. AND ROBINSON, LAKE, LERER &
MONTGOMERY, INC.), a corporation organized under the laws of the State of New
York, with its principal executive offices located at 75 Rockefeller Plaza, New
York, New York 10019 (the "Company"), TRUE NORTH COMMUNICATIONS INC., a
corporation organized under the laws of the State of Delaware ("True North"),
and HARRIS DIAMOND, residing at 18 Old Hyde Road, Weston, Connecticut 06883 (the
"Executive").

                              W I T N E S S E T H
                              - - - - - - - - - -

     WHEREAS, the Company and Bozell, Jacobs, Kenyon & Eckhardt, Inc. ("BJK&E"),
which has later become a subsidiary of True North, have entered into an Asset
Purchase Agreement, dated as of the date hereof (as the same may be amended or
modified, the "Asset Purchase Agreement") with D. H. Sawyer & Associates, Ltd.,
a Delaware corporation doing business as Sawyer Miller Group ("SMG"), Executive
and three other executives of SMG (collectively, with Executive the "SMG
Principals"), pursuant to which the Company is to acquire certain assets of SMG
and its wholly-owned subsidiary, KRC Research & Consulting, Inc.;

     WHEREAS, as of the date hereof, the Executive is the record and beneficial
owner of 25% of the outstanding stock of SMG and is a director and executive
officer of SMG and will benefit by the consummation of the acquisition
contemplated by the Asset Purchase Agreement (the "Acquisition"):

     WHEREAS, subject to the consummation of the Acquisition, the Company
desires to employ the Executive as an executive officer, True North desires to
undertake certain obligations in connection therewith, and the Executive desires
to accept such employment, all on the terms and conditions set forth herein:

     WHEREAS, in conjunction with such employment, True North is as of the date
hereof entering into a Stock Subscription Agreement with the Executive pursuant
to which BJK&E, is subject to the terms and conditions thereof, to sell stock of
BJK&E to the Executive:

     NOW, THEREFORE, the parties hereto agree as follows:

     1.   Employment:  Effectiveness

          The Company hereby agrees to employ the Executive, and the Executive
hereby accepts such employment, upon the terms and conditions hereinafter set
forth and effective upon the consummation of the Acquisition.  In the event that
the consummation of the Acquisition does not take place on or prior to 5:00 p.m.
New York time on April 30, 1993, this Agreement and the rights and obligations
hereunder of the Company, True North and the Executive shall be null and void
without any liability hereunder to any other party.

     2.   Titles and Duties

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          (a)  The Company shall employ the Executive as the Chairman of the
Board and Chief Executive Officer of the Company.  The Executive shall have the
authority, powers and responsibility normally and customarily associated with
those of a chief executive officer.  The Executive shall perform such duties as
may be assigned to him by any of the Chief Executive Officer of True North, the
Board of Directors of the Company and the Board of Directors of True North which
are not inconsistent with those of the Chief Executive Officer.  Subject to the
immediately preceding sentence, the Executive shall report directly to the Board
of Directors of the Company.  True North agrees to arrange for the election of
the Executive to the Board of Directors of the Company.  The Executive's
principal place of business shall be at the Company's principal office in the
metropolitan New York City area; provided that it is understood that the
performance of Executive's duties under this Agreement are expected to require
substantial domestic and international travel.  At True North's request, but
without any additional compensation (unless paid to other similarly situated
executives generally), if so elected the Executive also agrees to serve as a
Member of the Management Executive Committee of True North.

          (b)  Intentionally Left Blank.

          (c)  The Executive hereby accepts such employment and agrees to render
his services well and faithfully and to the best of his ability.  The Executive
shall devote his full business time and attention to the services to be rendered
by him hereunder.

     3.   Term

          (a)  Subject to Paragraph 1, the term of this Agreement (the "Term")
shall commence and take effect as of April 1, 1993 (or, if later, the Effective
Time as defined in the Asset Purchase Agreement) and end on June 30, 2005 or on
such earlier date as the employment of the Executive is terminated by the
Executive or the Company as hereinafter provided in Paragraph 3(b), (c) or (d).
The Term shall automatically be extended from July 1, 2005 through June 30, 2007
(the "Extension Term"), unless, on or before March 31, 2005, the Company
notifies the Executive in writing of its intent not to extend the Term (a "Non-
Extension Notice").  The terms of this Agreement shall remain unchanged during
the Extension Term (including the Executive's rights as to compensation benefits
position and status as in effect immediately prior to the Extension Term).  If
the Company decides to terminate the Executive's employment after the end of the
Extension Term, then the Executive shall be eligible for severance benefits
under the terms and conditions of the Company's normal severance policy, as then
in effect.

          (b)  The employment of the Executive will terminate upon the death or
disability of the Executive (the physical or mental incapacity of the Executive
which prevents Executive from performing the Executive's duties as herein
provided for a continuous period of one hundred and twenty (120) days or an
aggregate period of 180 days during any consecutive twelve-month period).

          (c)  The Company may terminate the employment of the Executive for
"Just Cause" upon thirty days' notice of such termination to the Executive.
Termination of the Executive's employment by the Company shall constitute a
termination for "Just Cause" only if such termination is for one or more of the
following reasons:  (x) the failure of the Executive to render services to the
Company in accordance with the Executive's obligations under this Agreement,
which failure amounts to gross neglect of the Executive's duties to the Company
for more than thirty (30) days after having received written notice specifying
the nature of the failure; or (y) the commission by the

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Executive of any flagrant act of dishonesty or disloyalty or any act involving
gross moral turpitude which materially and adversely affects the business of the
Company; or (z) the conviction of the Executive in a court of law of any crime
or offense involving misuse or misappropriation of money or other property of
the Company.

          (d)  The Executive may terminate his employment with the Company at
any time with "Good Reason" upon thirty (30) days written notice by the
Executive to the Company (except, in the case of (i) below, upon ten (10) days
written notice by the Executive to the Company and the Company's failure to cure
the same within such ten-day period, and, in the case of (ii) below, upon
fifteen (15) days written notice by the Executive to the Company and the
Company's failure to cure the same within such fifteen-day period), and the
Executive's employment will thereupon terminate on the date specified in such
notice. "Good Reason" means (i) a reduction in or failure to pay the Executive's
compensation (it being understood that neither the elimination or reduction of
discretionary benefits or other discretionary compensation nor the failure
pursuant to Paragraph 6(e) hereof to pay any Annual Bonus shall constitute Good
Reason; provided that the failure for any other reason to pay the Annual Bonus
for so long as such Annual Bonus remains in effect shall constitute Good
Reason), (ii) a material change in the Executive's duties or responsibilities or
reduction in authority, (iii) without the Executive's prior written consent, a
transfer from the Company to an affiliate thereof of a material portion of the
business (including the Controlled P.R. Operations, as hereinafter defined)
operated by the Company or of the Business (as defined in the Asset Purchase
Agreement), (iv) without the Executive's prior written consent, a sale of a
substantial portion of the assets of the Company, (v) without the Executive's
prior written consent, the merger or consolidation of the Company immediately
after which the business of the Company constitutes less than a majority of the
business of the surviving or new entity, (vi) a written requirement by the
Company that the Executive move from his present place of residence, or (vii)
the failure of True North management to recommend to the Compensation Committee
of the True North Board of Directors a minimum stock option grant for the
Executive of 15,000 shares for each 12-month period from January 1, 2000 through
June 30, 2002.

          4.   Severance Payments

          (a)  If the Company terminates the Executive's employment without Just
Cause or the Executive terminates his employment for Good Reason, in either case
prior to the end of the Term (or the Extension Term, as applicable), or if the
Company delivers a Non-Extension Notice on or before March 31, 2005, the Company
will provide the Executive the following benefits (but without any mitigation of
the Company's liability to the Executive):

               (i)   For a severance period equal to the remainder of the Term
          (subject to a minimum severance period of 18 months and a maximum
          severance period of 30 months), (A) continuing base salary (at the
          annual rate payable as of the date of termination), (B) an annual
          bonus equal to 50% of annual base salary (to be paid at the time other
          senior executive bonuses are paid), and (C) continuing medical, dental
          and life insurance coverage (on terms substantially comparable to
          those provided to the Executive and his covered dependents immediately
          prior to the termination of his employment);

               (ii)  Any earned but unpaid Annual Bonus for the year prior to
          the year in which the Executive's termination of employment occurs,
          and any other previously earned and accrued entitlements and benefits
          from

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          the Company or its affiliates (including any entitlements under
          applicable Company or affiliate benefit plans, programs or policies);

               (iii)   If the Executive is terminated by the Company without
          Just Cause effective prior to July 1, 2002, a full Annual Bonus for
          the fiscal year (or the first half of the fiscal year, in the case of
          2002) in which such termination takes place;

               (iv)    If the Executive terminates his employment for Good
          Reason effective prior to July 1, 2002, a pro-rated Annual Bonus for
          the fiscal year (or the first half of the fiscal year, in the case of
          2002) in which such termination takes place, based on the length of
          the Executive's employment for that fiscal year;

               (v)     If the Executive's employment terminates on or after July
          1, 2002, he shall be considered for a pro-rated annual incentive bonus
          for the fiscal year in which such termination of employment is
          effective;

               (vi)    Full vesting of all stock options then held by the
          Executive that are granted to the Executive by True North on or after
          January 1, 2000 (including the stock options granted to the Executive
          concurrent with entering into the January 1, 2000 Amendment to the
          Agreement);

               (vii)   Full vesting of all restricted stock then held by the
          Executive that was previously or is in the future granted to the
          Executive by True North (including the restricted stock granted to the
          Executive concurrent with entering into the January 1, 2000 Amendment
          to the Agreement); and

               (viii)  Each stock option granted to the Executive by True North
          on or after January 1, 2000 (including the stock options granted to
          the Executive concurrent with entering into the January 1, 2000
          Amendment to the Agreement) then held by the Executive shall be
          exercisable by the Executive for up to three years after the date of
          termination of employment, but in no case beyond the 10-year term of
          such stock option.

it being understood that, other than pursuant to clauses (i)-(viii) above, the
Executive shall have no interest in or right to receive from the Company or its
affiliates any other entitlement, benefit or bonus.

          (b)  If the Executive's employment is terminated by the Company for
Just Cause or if the Executive terminates his employment for any reason other
than for Good Reason, the Executive will receive only the amounts and benefits
specified in Paragraph 4(a)(ii) hereof.

          (c)  In the event of the Executive's death or disability, as specified
in Paragraph 3(b), the Executive, his heirs, distributees and legal
representatives will receive only the amounts and benefits specified in
Paragraph 4(a)(ii) hereof and the pro rata portion of the Annual Bonus for the
year in which the Executive's death or disability occurs.

     5.   Compensation

          For all services rendered under this Agreement,

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          (a)  Base Salary

               Effective January 1, 2000, the Company shall pay the Executive a
base salary of not less than $724,250 per annum, payable in such installments as
salaries are paid to other senior executive personnel of the Company.

          (b)  Discretionary Bonus

               Prior to July 1, 2002, at the sole and absolute discretion of the
Chief Executive Officer of True North, or any successor thereto, the Company
may, but shall not be required to, pay the Executive a bonus for the period
commencing on the date of this Agreement and ending March 31, 1994 and for each
or any successive twelve-month period thereafter during the term of this
Agreement.  Effective July 1, 2002, the Executive shall be entitled to
participate in the True North Executive Compensation Program, as applied to his
position with the Company and within the True North organization, and as such
Program may be amended from time to time.  The Executive's target opportunities
and performance standards under that Program shall be comparable to those
applicable to other senior executives holding comparable positions.

          (c)  Expenses

               During the term of Executive's employment hereunder, the
Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Executive (in accordance with the policies and
procedures established by the Company and its affiliates for their executive
officers) in performing services hereunder, provided that the Executive properly
accounts therefor in accordance with Company policy.

          (d)  Participation in Benefit Plans

               The Executive shall be entitled to participate in or receive
benefits under any of the pension, profit sharing, or savings plans that are
qualified under the provisions of Section 401(a) of the Internal Revenue Code of
1986, as amended, that are at present or in the future made available generally
to the executives and key management employees of the Company and its
affiliates, in accordance with the terms thereof. Nothing paid to the Executive
under any plan or arrangement presently in effect or made available in the
future shall be deemed to be in lieu of base salary or bonuses payable to the
Executive hereunder.

          During the Term, the Executive shall be entitled to participate in the
employee benefit plans and programs and fringe benefit arrangements that are
generally available to senior executives of the Company from time to time
(including coverage under any director and officer liability insurance
maintained by True North and including, but not to the extent resulting in
duplicative benefits, the benefit plans and programs and fringe benefit
arrangements generally available to members of the Management Executive
Committee of True North, to the extent the Executive continues to be a member of
that Committee).

          Upon the January 1, 2000 Amendment to the Agreement, True North shall
grant to the Executive a stock option for 40,000 shares and 5,000 shares of
restricted stock, with each such award to become vested as to one-third of the
shares on each of the first, second and third anniversaries of the date of grant
(subject to accelerated vesting hereunder), and with both such awards to be
subject to the terms of the True North Stock

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Option Plan. In addition, for the period January 1, 2000 through June 30, 2002,
True North management will recommend to the Compensation Committee of the True
North Board of Directors a minimum stock option grant for the Executive of
15,000 shares for each 12-month period.

          Executive's service with SMG, calculated in accordance with the terms
of the relevant SMG benefit plan or policy, shall be credited for eligibility,
vesting and (with respect to unused vacation time accrued since January 1, 1993
and deductibles absorbed by the Executive on medical, health and dental plans)
benefit accrual purposes under all benefit plans and employment policies of the
Company and its affiliates described in this Paragraph 5, as if such service had
been rendered to the Company or its affiliates, including, without limitation,
True North.

          (e)  Vacation and Holidays

               The Executive shall be entitled to paid vacations and holidays in
accordance with the policy of the Company and its affiliates in effect from time
to time for their senior officers.

     6.   Special Bonus

          For each fiscal year of the Company commencing on April 1, 1993 and
ending June 30, 2002, the Executive shall be entitled to receive an annual bonus
(the "Annual Bonus") payable not later than seventy-five (75) days after the end
of the fiscal year for which such payment is due, determined in the following
manner:

          (a)  Annual Bonus

               Subject to subparagraphs 6(b) and (c) below, the Annual Bonus
shall be equal to 8.33% of the amount of Operating Profit, as hereinafter
defined, earned by the Company within each such fiscal year. The Company shall
have the right to offset against any payments of the Annual Bonus any amounts
then due and payable by the Executive to the Company or any of its affiliates.

          (b)  Bonus Threshold

               Notwithstanding subparagraph (a) above, the Executive shall not
be entitled to an Annual Bonus for any fiscal year of the Company (i) unless and
until the Operating Profit of the Company for such fiscal year exceeds the
amount set forth below under the heading "Operating Profit Threshold" with
respect to such fiscal year, (ii) with respect to any Operating Profit other
than that portion of such Operating Profit in excess of the Operating Profit
Threshold for such fiscal year set forth below and (iii) unless the sum of the
cumulative Operating Profits from April 1, 1993 through the end of such fiscal
year exceeds the sum of the Operating Profit Thresholds set forth below for such
period; provided, however, that the amount of the Operating Profit Threshold for
the fiscal years ending March 31, 1994, 1995 and 1996 shall be reduced in each
case by the Sawyer Profit (as hereinafter defined) earned in that fiscal year,
provided further that the foregoing reduction shall not exceed $1,000,000 for
the fiscal year ending in 1994, $1,350,000 for the fiscal year ending in 1995
and $1,500,000 for the fiscal year ending in 1996; provided further, however,
that the Operating Profit Threshold for the fiscal year ending March 31, 1996
shall be reduced by $200,000 in the event that the Company and its Affiliates
(as hereinafter defined) receive revenues in the fiscal years ending in 1994 and
1995 equal in the aggregate to at least $3,000,000 from (i) spot buying computed
at rates of 3.5% and network buying computed at rates of 1.5% done by the
Company

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through the Company and its Affiliates and (ii) from any other advertising
services obtained by the Company from the Company and its Affiliates at a charge
of 2.85 times the salary and benefit costs of the employees providing such
services:

       Fiscal Year Ending March 31,           Operating Profit Threshold
       ----------------------------           --------------------------
                   1994                               $1,600,000
                   1995                               $2,550,000
                   1996                               $2,700,000
                   1997                               $  400,000
                   1998                               $  400,000
                   1999                               $  400,000
                   2000                               $  400,000
                   2001                               $  400,000
       2002 (through June 30, 2002)                   $  400,000

For purposes hereof, the term "Sawyer Profit" shall mean the product of three
times the sum of (i) 3% of gross income earned by the Company and any other
direct or indirect subsidiaries of BJK&E ("Affiliates") directly from any
advertising client accounts obtained by the Company or any Affiliates after the
date hereof, and as to which accounts the activities of David H. Sawyer ("DHS")
were a material factor in the Company or such Affiliates obtaining the same,
plus (ii) (x) the gross income earned by the Company and any Affiliate directly
from any public relations client accounts obtained by the Company or any
Affiliate after the date hereof and as to which accounts the activities of DHS
were a material factor in the Company or such Affiliates obtaining the same,
minus (y) the costs of servicing such accounts (such costs being the direct
salary and other direct costs of servicing such accounts plus overhead based on
the Company's parent's accounting system), it being understood that such costs
do not include the salary payable to DHS.

          (c)  It is acknowledged that the three other SMG Principals and the
RLL&M Principals are each, pursuant to their employment agreements with the
Company, eligible to receive an annual bonus identical to the Annual Bonus to
which the Executive is entitled under Paragraph 6(a) hereof (each an "Incentive
Annual Bonus"), provided that the employment agreements of the RLL&M Principals
do not provide for any minimum Operating Profits as set forth in Paragraph 6(b)
hereof (the SMG Principals and the RLL&M Principals being hereinafter referred
to collectively as the "Incentive Executives"). If within the Term any of the
Incentive Executives (other than the Executive) ceases to be entitled to receive
an Incentive Annual Bonus, then the Annual Bonus payable to the Executive shall
be increased from 8.33% of the amount of Operating Profit to: if one of the
other Incentive Executives ceases to be so employed, 9.01%; if a total of two of
the other Incentive Executives ceases to be so employed, 9.87%; if a total of
three of the other Incentive Executives ceases to be so employed, 11%; if a
total of four of the other Incentive Executives ceases to be so employed,
12.57%; if a total of five of the other Incentive Executives ceases to be so
employed, 14.24%; if a total of six of the other Incentive Executives ceases to
be so employed, 17.69%; and if all seven of the other Incentive Executives cease
to be so employed, 25%; provided, however, if pursuant to the Employment
Agreement of any of such other Incentive Executives, such Incentive Executive is
entitled to an Incentive Annual Bonus with respect to a portion of a year as a
result of such Incentive Executive having been terminated by the Company without
Just Cause (as defined in such agreement) or terminated his or her employment
for Good Reason (as defined in such agreement), or in the event of his death or
disability, then this sentence shall only apply with respect to the pro rata
portion of such year for which such other Incentive Executive is not entitled to
an Incentive Annual Bonus. Notwithstanding anything to the contrary, and
regardless of

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whether or not additional Incentive Executives cease to be so employed, the
Annual Bonus payable to the Executive shall be and is hereby fixed at 14.24% of
the amount of the Operating Profit for the periods through March 31, 1998 and
thereafter shall be 15%; provided that, should any of the other Incentive
Executives cease to be employed after November 30, 1996, and prior to March 31,
1998, the Annual Bonus payable to the Executive for such fiscal year and all
years thereafter shall be 15%.

          (d)  Operating Profit

               "Operating Profit", as used herein, is defined as the income
earned by the Company and the Controlled P.R. Operations (as hereinafter
defined) from operations in any fiscal year, or portion thereof, of the Company
within the Term, less all salary and general administrative and operating
expenses of the Company and the Controlled P.R. Operations, including
compensation (other than the Executive's Annual Bonuses, the other Incentive
Executives' Incentive Annual Bonuses, and any bonuses paid pursuant to paragraph
5(b) hereof; payable to the Incentive Executives, expenses regarding the Assumed
Liabilities (as defined in the Asset Purchase Agreement; and the corporate
apportionment expense referred to in subparagraph (f) hereof, incurred in such
fiscal year, but excluding any charges related to the employment of DHS, any
deductions, charges or amortization of the assets purchased as part of the
Acquisition and any indemnification obligations under the Asset Purchase
Agreement. `Controlled P.R. Operations,' as used herein, is defined as those
public relations operations directly or indirectly and minority or majority
owned by the Company or True North that are operated by and have reporting
responsibilities to the Company. As a point of clarification, the operating
profit of a Controlled P.R. Operation that is acquired by True North or the
Company after January 1, 1999 shall be included in the above Operating Profit
calculation as follows (with respect to the determination of Annual Bonus for
each fiscal year):

               (i)    For each fiscal year, the actual operating profit of that
          Controlled P.R. Operation shall be included in the Operating Profit
          calculation.

               (ii)   The resulting Operating Profit shall then be reduced by
          the pro forma estimate of the first 12 months' post-acquisition
          operating profit that is presented by the Executive and/or his staff
          and approved by the Board of Directors of True North, the Finance
          Committee of the Board of Directors of True North, or True North
          management (as the case may be) in connection with the acquisition of
          such Controlled P.R. Operation (such reduction shall be without regard
          to any unusual or acquisition related charges that are included in
          such pro-forma estimate, unless such charges are also reflected in the
          actual operating profit calculation for the year in question).

               (iii)  For consistency purposes, both the actual operating profit
          in (i) above and the pro-forma operating profit in (ii) above shall be
          adjusted to exclude the corporate allocations referred to in Paragraph
          6(f) of this Agreement.

               (iv)   Notwithstanding the foregoing, the Financial Relations
          Board and the Benjamin Group shall not be included in the Operating
          Profit Calculation for 1999, and, beginning with the 2000 fiscal year,
          the reduction described in (ii) above for the Financial Relations
          Board and the Benjamin Group, shall be $5,486,000 and $2,200,000,
          respectively.

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               (v)    Also notwithstanding the foregoing, upon any sale, merger
          or other corporate reorganization of a Controlled P.R. Operation that
          occurs without the consent of the Executive, unless otherwise agreed
          to by all parties to this Agreement, such operation shall not be
          considered a Controlled P.R. Operation for purposes of this Paragraph
          6(d) with respect to any period of time after such sale, merger or
          other corporate reorganization.

          (e)  Default

               (i)    The parties acknowledge that True North is subject to
          certain monetary restrictions imposed pursuant to the terms and
          conditions of agreements with its lending institutions (such lending
          institutions and any other institutions providing for the refinancing
          or full or partial repayment of any amounts owed to such lending
          institutions being the "Lenders"). In the event that the making of any
          Annual Bonus payment to the Executive would result (with or without
          the passage of time or giving of notice or both) in a default
          ("Default") by True North or any affiliate in True North's or any
          affiliate's obligations to any one or more of its Lenders, or if True
          North or any affiliate is in Default at the time that any such Annual
          Bonus payment is due, then the Company need not make such Bonus
          payment at such time.

               (ii)   At such time as payment of all or any portion of such
          unpaid Annual Bonus payment can be paid without incurring a Default or
          when such existing Default ceases, the Company agrees to make any
          payment thereof to the Executive, with interest from the date such
          payment was due at the rate of interest on 26 week Treasury Bills for
          the immediately preceding auction of short-term U.S. Government bills
          as quoted in the "Money Rates" section of the Wall Street Journal (or,
          if not quoted therein, as quoted in any other reliable source).

               (iii)  Anything hereinabove contained in subparagraph (ii) to the
          contrary notwithstanding, in the event that an Annual Bonus payment is
          not made by reason of the existence of an event of Default, or that
          payment would occasion an event of Default, the board of directors of
          the Company may, at its option, nevertheless determine to make all or
          a portion of such Bonus payment to the Executive if consent thereto
          can be obtained from the Lenders.

               (iv)   Anything hereinabove contained in this subparagraph (e) to
          the contrary notwithstanding, in the event that any Annual Bonus
          payment is not made to the Executive by reason of an event of Default,
          the Executive may demand, by written notice to the Company with a copy
          to True North, payment of an amount equal to the lesser of (x) the
          full amount of the Annual Bonus payment or payments then due and
          payable to the Executive, and (y) the sum of $200,000, and in the
          event of receipt of such written demand from the Executive, the
          Company agrees to make prompt payment of the amount thus demanded, it
          being understood that any amount so paid shall be a credit against
          accrued but unpaid Annual Bonus payments (and accrued interest
          thereon) and any remaining amounts of any Annual Bonus shall be
          payable pursuant to the other provisions of this subparagraph (e).

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               (v)    Notwithstanding any provision of this Agreement to the
          contrary, the occurrence of any Default under this Paragraph shall be
          determined based on the terms of the default provisions as in effect
          on January 1, 2000 under the credit agreements or other lending
          arrangements between True North or its affiliates and their respective
          lenders.

          (f)  Corporate Apportionment

               True North shall make available to the Company the services of
all administrative departments of True North and its affiliates, such as,
without limitation, accounting and personnel, without charge to both the Company
and the Controlled P.R. Operations other than an apportionment charge equal to
Three Percent (3%) (four percent (4%) for all periods commencing from and after
April 1, 1997) of all revenues of the Company and the Controlled P.R.
Operations, other than those specified below in this Paragraph 6(f), to provide
appropriate compensation to True North and its affiliates for corporate salaries
(i.e., Messrs. Peebler, Zammit et al.), services provided by True North's and
its affiliates' accounting and data processing departments, ordinary legal
expenses, charitable contributions, fees and subscriptions (i.e., Dun &
Bradstreet Reports), audits, corporate communications, Yellow Page listings, and
the Company's and the Controlled P.R. Operation's share of other expenses which
are paid out of corporate funds. Revenues will not include any payments by a
client which True North or its affiliates receives as a paying agent for the
client to pay a third party to produce or purchase a product or service for the
client.

          (g)  Resolution of Disputes

               The Company shall advise the Executive in writing, not later than
simultaneously with payment of the Annual Bonus, the manner in which the Annual
Bonus and any amounts offset against the Annual Bonus were determined.  If
within thirty (30) days thereafter, none of the Executive or the other Incentive
Executives objects, such computations shall be deemed to be final and binding on
the Company and the Incentive Executives.  If within the thirty day period any
Incentive Executive gives the Company notice of objection to such computations,
and if within thirty days of receipt of such notice, the Company and the
objecting Incentive Executive(s) fail(s) to resolve their differences, then the
auditors for the Company and such auditors as the objecting Incentive
Executive(s) may choose shall refer the dispute to a nationally-recognized
accounting firm whose determination shall be final and binding.  The Company
shall make available to such accounting firm such books and records as may be
reasonably requested to resolve the matter.  The expenses of such accounting
firm with respect to the resolution of such matter shall be borne by the non-
prevailing party, it being understood that in the event that the Company is the
prevailing party, such expenses shall be borne by the objecting Incentive
Executive and not all Incentive Executives.

     7.   Covenant Not to Solicit or Compete

          In consideration of the Executive's employment and continued
employment with the Company, and in consideration of the payment of the Purchase
Price and the assumption of the Assumed Liabilities by the Company pursuant to
the Asset Purchase Agreement, the Executive agrees that for a period of one (1)
year subsequent to the termination of the Executive's employment with the
Company for any reason (specifically including termination by the Executive of
his employment with the Company for Good Reason and specifically including
termination upon delivery by the

                                      10
<PAGE>

Company of a Non-Extension Notice) other than death or termination by the
Company without Just Cause, the Executive will not, directly or indirectly,
either on the Executive's own behalf or on behalf of any other person, firm or
corporation:

          (a) solicit the employment of or employ or attempt to employ or assist
anyone else to employ any person who is then or at any time during the preceding
twelve-month period was in the employ of the Company, RLL&M or SMG; or

          (b)  solicit any account which is a client of the Company, RLL&M or
SMG at the time of such termination, or which was a client of the Company, RLL&M
or SMG at any time within one year prior to the date of such termination; or

          (c) perform any services relating to advertising, public relations,
marketing or research for any account described in subparagraph (b) hereof,
either on the Executive's own behalf or on behalf of any other public relations
firm, advertising agency or similar organization representing any such accounts.

          It is the desire and intent of the parties that the provisions of this
Paragraph 7 shall be enforced to the fullest extent permissible under the laws
and public policies applied in each jurisdiction in which enforcement is sought.
Accordingly, if any particular subparagraph or portion of this paragraph 7 or
application of this paragraph 7 shall be adjudicated to be invalid or
unenforceable, this paragraph 7 shall be deemed amended to delete therefrom the
portion or application thus adjudicated to be invalid or unenforceable, such
deletion to apply only with respect to the operation of this Paragraph in the
particular jurisdiction in which such adjudication is made.

     8.   Corporate Name

          It is acknowledged that it is the present intention of the Company to
utilize as its name the name "Robinson, Lake, Lerer & Montgomery/Sawyer Miller
Group, Inc."  The Executive covenants and agrees that for so long as any of the
surnames which are intended to be used in the name of RLL&M/SMG are used in the
name of RLL&M/SMG, and for a period of one year thereafter, the Executive will
not use any of said surnames in the title of any business entity.

     9.   Company Remedies

          If there is a breach or threatened breach of the provisions of
paragraph 7 of this Agreement, the Company shall be entitled to an injunction
restraining the Executive from such breach.  Nothing herein shall be construed
as prohibiting the Company from pursuing any other remedies for such breach or
threatened breach.

     10.  Executive Remedies

          The Executive shall be afforded, and shall be entitled to pursue, all
remedies at law and in equity for any breach of this Agreement.

     11.  Insurance

          The Company may, at its election and for its benefit, insure the
Executive against accidental loss or death, and the Executive shall submit to
such physical examination and supply such information as may be required in
connection therewith.

                                       11
<PAGE>

     12.  Relocation

     The Company acknowledges that under no circumstances will the Executive be
required to move from the present place of residence of the Executive.

     13.  Representations and Warranties

          (a)  True North represents and warrants as of the date hereof it is,
and as of the Effective Time it will be, the record and beneficial owner of all
of the issued and outstanding capital stock of BJK&E, which is, and as of the
Effective Time will be, the record and beneficial owner of all of the issued and
outstanding capital stock of the Company, it being understood that such shares
are and/or in the future may be pledged, and there are no options, rights or
other securities of the Company which are issued or outstanding.

          (b)  The Company represents and warrants as of the date hereof that
except as provided in the employment agreements between the Company and each of
the SMG Principals, and each of the RLL&M Principals (which do not provide any
rights or benefits which are in any material respect different from those
provided to the Executive pursuant to this Agreement so as to affect the
calculation of the Operating Profit for purposes of Paragraph 6(d) hereof, or
affect the amount of any Annual Bonus to which the Executive may be entitled
hereunder), and except as provided in the articles of incorporation and bylaws
of RLL&M, there is no, and as of the Effective Time there will not be any,
agreement between the Company or RLL&M and any other person, firm or entity
relating to the management, operation and control of RLL&M.

     14.  Expenses

          (a)  Except as provided in Paragraph 14(b) below, all costs, expenses
and charges incurred by the parties in connection with the transactions herein
contemplated shall be borne by the party incurring the same.

          (b) In the event a party retains legal counsel in connection with the
enforcement of its rights under this Agreement, and the other party is found by
a court having competent jurisdiction to have breached its obligations
hereunder, after all appeals therefrom have been exhausted, such party shall be
liable for the payment of the reasonable legal fees and related reasonable
charges and disbursements of the prevailing party in connection with any such
enforcement action.

     15.  Notices

          Any notice required or permitted to be given under this Agreement
shall be sufficient if in writing and sent by registered mail or delivered in
person to the Executive at the residence address the Executive has provided to
the Company, and to the Company at its address set forth above, Attention:
Chief Executive Officer and also to True North at 101 East Erie Street, Chicago,
IL, Attention:  General Counsel (or to such other address as a party may
designate by notice to the other).

     16.  Waiver of Breach

                                       12
<PAGE>

          A waiver of the Company, True North or the Executive of a breach of
any provision of this Agreement by any other party shall not operate or be
construed as a waiver of any subsequent breach by such party.

     17.  Governing Law

          This Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of New York.

     18.  Entire Agreement

          This instrument contains the entire agreement of the parties.  It may
be changed only by an agreement in writing signed by a party against whom
enforcement of any consent, waiver, change, modification, extension or discharge
is sought.  Any amendment hereof must be in writing and signed by all the
parties hereto.

     19.  Assignment

          This Agreement shall be binding upon and inure to the benefit of the
Executive, and with respect to the amounts and benefits specified in Paragraphs
4, 5 and 6 hereof, his heirs, distributees and legal representatives, and the
Company and True North and their respective successors and permitted assigns.
Except as provided in the immediately preceding sentence, the Executive shall
not assign any of his rights or obligations under this Agreement.  The Company
shall not merge or consolidate with or into, or sell or otherwise transfer
substantially all of its assets to, another corporation or entity unless that
corporation or entity assumes, either expressly or by operation of law, the
Company's obligations under this Agreement.  Any purported assignment or
transfer of this Agreement in violation of this Paragraph 19 shall be void.

     20.  Survival

          The provisions of Paragraphs 1, 4 5(c) and (d), 6, 7, 8, 9, 10, 13,
14, 19, 20, 21 and 22 hereof shall survive the termination of the employment of
the Executive under this Agreement.

     21.  Indemnification

          Each of the Company and True North shall indemnify and hold the
Executive harmless to the maximum extent permitted by applicable law against
judgments, fines, amounts paid in settlement and reasonable attorney's fees
incurred by the Executive, in connection with the defense of or as a result of
any action, proceeding (or appeal of any action or proceeding) in which the
Executive is made or is threatened to be made a party by reason of the fact that
he is or was an officer or director of the Company.

     22.  True North Guarantee

          (a)  The execution, delivery and performance by True North of this
Agreement are within the corporate powers of True North and have been duly
authorized by all necessary corporate action on the part of True North, and this
Agreement constitutes a valid and legally binding agreement of True North,
enforceable against True North in accordance with its terms.

                                       13
<PAGE>

          (b)  True North hereby unconditionally and irrevocably guarantees (the
"Guarantee"), to and for the benefit of the Executive, payment and performance
by the Company when due of all its obligations under this Agreement.

          (c)  True North agrees that its Guarantee shall continue to be
effective or shall be reinstated, as the case may be, if at any time any payment
of any obligation to Executive under this Agreement is rescinded or must
otherwise be returned by the Executive upon the bankruptcy, insolvency,
liquidation or reorganization of the Company or otherwise, as though such
payment had not been made, and, in furtherance (but not in limitation) of the
foregoing, True North agrees to pay the Executive on demand any amount which the
Executive is required to pay to any person or entity under any bankruptcy,
insolvency, liquidation, reorganization or other similar law on account of any
amount received by the Executive from any person or entity under or with respect
to this Agreement or the Guarantee.

          (d)  The Guarantee is a continuing guarantee, and it is a guarantee of
payment and performance and not of collection.

          (e)  Notwithstanding any provision to the contrary contained in this
Agreement, True North hereby unconditionally and irrevocably waives (i) any and
all rights of subrogation to the claims, whether existing now or arising
hereafter, True North may have against the Company, whether due to any payment
under this Agreement or otherwise and (ii) any and all rights of reimbursement,
contribution or indemnity that True North may have against the Company, which
may have heretofore arisen or may hereafter arise in connection with any
guarantee or any pledge or grant of any lien or security interest made in
connection with any obligation under this Agreement.

          (f)  True North hereby waives (i) promptness and diligence, (ii)
notice of acceptance, and (iii) all other notices, demands and protests in
connection with the enforcement of such obligations or of the obligations of
True North under this Agreement, the omission of or delay in which, but for the
provisions of this paragraph (f), might constitute grounds for relieving True
North of its obligations under this Agreement.

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

                                       BSMG WORLDWIDE, INC.

                                       BY: /s/ Edward Powers
                                          ----------------------------------
                                           Edward Powers
                                           Chief Operating Officer

                                           /s/ Harris Diamond
                                          ----------------------------------
                                           Signature of Executive

                                       TRUE NORTH COMMUNICATIONS INC.

                                       14
<PAGE>

                                       BY: /s/ Donald L. Seeley
                                          ----------------------------------
                                           Donald L. Seeley,
                                           Vice Chairman - Chief Financial
                                           Officer

                                      15<PAGE>

                                                                   Exhibit 10.18

                             EMPLOYMENT AGREEMENT
                             --------------------

          EMPLOYMENT AGREEMENT dated as of August 1, 1999 between True North
Communications Inc., a Delaware corporation (the "Company" or "True North") and
Leo-Arthur Kelmenson (the "Executive").

          WHEREAS, the Company is a global communications holding company with
ownership interests in subsidiaries, affiliates and joint ventures that are
engaged in the advertising agency business, the multimedia production business,
the business of planning and buying of media time and space and related
businesses (the Company and the subsidiaries, affiliates and joint ventures in
which it from time to time has equity interests are hereinafter referred to
collectively as the "True North Group");

          WHEREAS, the Executive currently serves the Company as the Chairman
and Chief Executive Officer of Bozell Worldwide, Inc. ("Bozell");

          WHEREAS, the Executive and Bozell's direct parent company, Bozell,
Jacobs, Kenyon & Eckhardt, Inc., have entered into an Employment Agreement dated
March 30, 1992 and subsequently amended from time to time (the "BJK&E
Agreement"); and

          WHEREAS, the Company and the Executive desire to enter into this
Agreement to replace the BJK&E Agreement and to provide for the continued
employment of the Executive by the Company upon the terms and subject to the
conditions set forth herein. (Unless noted otherwise, all references herein to
the Company shall include Bozell.)

          NOW, THEREFORE, in consideration of the premises and the mutual
agreements contained herein, the parties hereby agree as follows:

          1.   Employment.  The Company hereby employs the Executive and the
Executive hereby agrees to be employed by the Company upon the terms and subject
to the conditions contained in this Agreement.  The term of employment of the
Executive by the Company pursuant to this Agreement (the "Employment Period")
shall commence on the date hereof (the "Effective Date") and, unless earlier
terminated, shall expire on March 31, 2004; provided that the Employment Period
may be extended by mutual written agreement of the parties.  In addition, the
Executive may choose at his sole discretion to retire after March 31, 2001 but
prior to the scheduled expiration of the Employment Period and thereby trigger
commencement of the four-year Consulting Period; provided that the Executive
must provide the Company with at least six months' advance written notice of
such retirement, unless the Executive's health condition is such that a shorter
notice period is necessary.

<PAGE>

          2.   Position and Duties.  The Company shall employ the Executive
during the Employment Period with the title of Chairman and Chief Executive
Officer of Bozell (or such other title as may be mutually agreed upon by the
Executive and the Company); provided that the Executive will agree to relinquish
the title of Chief Executive Officer of Bozell and will cooperate with the
transition to the successor chief executive officer if and when he or she is
named. The Executive shall report directly to the True North Chief Executive
Officer (the "True North CEO"). The Executive's principal place of business
during the Employment Period shall be in New York City. While the Executive is
in the full-time employment of the Company, Company management will recommend
that the Executive be slated for election as a member of the True North Board of
Directors (the "Board"). Subject to the powers, authority and responsibilities
vested in the Board, in duly constituted committees of the Board and in the True
North CEO, the Executive shall have the duties and responsibilities commensurate
with his position and title as are reasonably assigned to him from time to time
by the True North CEO or the Board. During the Employment Period, the Executive
shall perform faithfully and loyally and to the best of the Executive's
abilities his duties hereunder, shall devote his full business time, attention
and efforts to the affairs of the True North Group and shall use his reasonable
best efforts to promote the interests of the Company. Notwithstanding the
foregoing, the Executive may engage in charitable, civic or community
activities, provided that they do not interfere with the performance of the
Executive's duties hereunder, and, with the prior approval of the Board, may
serve as a director of any business corporation; provided that such service does
not violate the terms of any of the covenants contained in Section 8 hereof.

          3.   Compensation.

          (a)  Annual Base Salary.  During the Employment Period, the Company
shall pay to the Executive an annual base salary at the rate of $1,024,800 per
annum in accordance with the Company's regular payroll practices.  This annual
base salary shall be reviewed periodically in accordance with guidelines
applicable to the Company's senior executives generally.

          (b)  Incentive Compensation.  During the Employment Period, the
Executive shall be entitled to participate in the True North Executive
Compensation Program, as such Program applies to similarly situated senior
executives and as such Program may be amended from time to time.  As currently
in effect, such Program consists of annual incentive compensation and long-term
incentives in the form of Earnings Performance Units and stock options.

          (c)  Other Benefits.  During the Employment Period, the Executive
shall be entitled to participate in the Company's employee benefit plans and
programs and fringe benefits that are generally available to senior executives
of the Company from time to time, subject to compliance with Company policies
and procedures; provided that the fringe benefits currently applicable to the
Executive under the BJK&E Agreement shall remain in place during the Employment
Period.

                                      -2-
<PAGE>

          (d)  Expense Reimbursement.  During the Employment Period, the Company
shall reimburse the Executive for all proper expenses incurred by him in the
performance of his duties hereunder in accordance with the Company's policies
and procedures.

          4.   Consulting Period and Benefits.

          (a)  Commencement.  At the expiration of the Employment Period in
accordance with Section 1 above, the Executive shall become a consultant to the
Company for the four-year period beginning on the day following the last day of
the Employment Period (the "Consulting Period").

          (b)  Duties and Responsibilities.  During the Consulting Period, the
Executive shall make himself available, upon reasonable notice, to perform
services for the Company that shall be related to such projects and matters as
the Board or the True North CEO may designate from time to time and that shall
be commensurate with the Executive's years of experience and level of skill.
Such services shall include consulting and advisory services with respect to the
operation of the Company's advertising business and the maintenance of
harmonious relations between the Company and those clients of the Company as may
be designated by the Board or the True North CEO.  Without limiting the
generality of the foregoing, the Executive shall (i) cooperate fully with the
True North CEO and the other senior executive officers of the Company, (ii)
provide such assistance and information as may be reasonably requested by the
Board or the True North CEO, and (iii) be available, by telephone or in person,
at such times and places as may be reasonably requested by the Company and as
may be mutually convenient to the Company and the Executive.  During the
Consulting Period, (1) the Executive shall not be required to devote more than
an average of six hours per week to such consulting and advisory services and
(2) the Executive may engage or participate in, or become employed by, or render
advisory or other services in connection with, any and all other business
activities which are not inconsistent with or otherwise in breach of the
Executive's duties and obligations to the Company (including, but not limited
to, the obligations set forth in Sections 8 and 9 of this Agreement).

          (c)  Consulting Benefits.  During the Consulting Period, the Executive
shall be paid an annual cash benefit equal to $950,000.  These consulting
payments shall be made no less frequently than monthly, and shall be subject to
any applicable tax withholding and tax reporting requirements.  The Company
shall reimburse the Executive in accordance with the Company's policies and
procedures for all proper expenses incurred by him in the performance of his
duties and responsibilities during the Consulting Period.  All stock options
granted to the Executive after the Effective Date shall, to the extent vested as
of the end of the Employment Period, be exercisable during the Consulting
Period, subject to expiration at the end of the specified term of each such
option.  During the Consulting Period and for the remainder of their respective
lives, the Executive and his current spouse shall be entitled to continued
coverage under the Company's then existing retiree medical plan (subject to the
continued payment of the Executive's portion of the applicable cost).

                                      -3-
<PAGE>

          (d)  Termination of Consulting Period.  The Consulting Period shall
terminate prior to the end of the four-year period, and the benefits described
in subsection (c) above shall immediately cease, upon the occurrence of either
of the following:  (i) the material failure by the Executive to perform the
reasonably requested duties and responsibilities described in subsection (b)
above (subject to written notice by the Company and a reasonable opportunity to
cure) or (ii) a material breach by the Executive of this Agreement or other
action by the Executive that constitutes "Cause" under Section 5(b) (subject to
written notice by the Company and a reasonable opportunity to remedy any
condition, conduct, action or inaction of the Executive giving rise to the
violation or breach if such violation or breach is remediable).  Notwithstanding
the foregoing, if the Executive dies or becomes permanently disabled (see
"Disability" as defined in Section 5(a) below) during the Consulting Period,
then the consulting benefits shall continue to be paid to the Executive or his
estate or designated beneficiary, as applicable, for the remainder of the four-
year Consulting Period; provided that such consulting benefits shall be reduced
by any amounts received by the Executive through a disability policy maintained
by the Company.  The Executive shall resume rendering the services described in
subsection (b) above if he should fully recover from any such Disability before
the end of the four-year Consulting Period.  The foregoing shall not be
construed as limiting any other rights or remedies that may be available to the
Company upon the Executive's breach of any provision of this Agreement.

          5.   Termination of Employment Period.

          (a)  Qualifying Termination.  For purposes of this Agreement,
"Qualifying Termination" means the occurrence of any of the following events
prior to the expiration of the Employment Period, as extended if applicable: (i)
termination of the Executive's employment by the Company without Cause (as
defined in subsection (b) below), (ii) termination of the Executive's employment
by the Company on account of the Executive having become unable (as determined
by the Company in good faith) to perform regularly his duties hereunder by
reason of illness or incapacity for a period of more than six consecutive months
(termination for "Disability"), (iii) termination of the Executive's employment
on account of the Executive's death, or (iv) termination of the Executive's
employment by the Executive due to the occurrence, without the Executive's
express written consent, of any of the following events:  (1) the assignment to
the Executive of any duties that either (A) are inconsistent in any material
respect with the Executive's position, duties, responsibilities or status with
the Company at the date of this Agreement (or subsequent hereto if such new
position(s), duties, responsibilities or status are agreed to by the Executive)
or (B) result in a material diminution of the Executive's responsibilities, (2)
a material adverse change in the Executive's reporting responsibilities, titles
or offices with the Company (excluding the relinquishment of the Executive's
Chief Executive Officer title as provided in Section 2 above) (3) a material
breach of the Company's obligations set forth in this Agreement, (4) a decrease
in the Executive's base salary that is not agreed to by the Executive, or (5)
any requirement of the Company that the location where the Executive is based is
outside of New York City.

For purposes of this Agreement, an isolated, insubstantial and inadvertent
action taken by the Company in good faith and which is remedied by the Company
promptly (the later of 60 days or

                                      -4-
<PAGE>

as soon as reasonably practicable) after receipt of written notice thereof given
by the Executive shall not constitute a basis for a Qualifying Termination.

          (b)  Definition of Cause.  The Company may terminate the Executive's
employment immediately for "Cause" if, in the reasonable determination of the
Board or the Compensation Committee of the Board, as set forth in an action of
the Board or such Committee setting forth in reasonable detail the reasons for
such termination, (i) the Executive engages in conduct that violates significant
policies of the Company after the Executive is notified by the Company that he
is engaging in conduct that violates such policies and that such conduct will be
deemed to be Cause; (ii) the Executive fails to perform the essential functions
of his job (except for a failure resulting from a bona fide illness or
incapacity) or fails to carry out the Board's reasonable directions with respect
to material duties after the Executive is notified by the Company that he is
failing to perform these essential functions or failing to carry out such
reasonable directions and that such conduct will be deemed to be Cause; (iii)
the Executive engages in embezzlement or misappropriation of corporate funds or
other acts of fraud, dishonesty or self-dealing, or commits a felony or any
significant violation of any material statutory or common law duty of loyalty to
the Company; or (iv) the Executive breaches a material provision of this
Agreement (including, but not limited to, the non-compete, non-solicitation,
confidentiality, or non-disparagement provisions in Sections 8 and 9), after the
Executive is notified by the Company that he has breached a material provision
of this Agreement and that such breach will be deemed to be Cause.  Prior to any
termination of the Executive for Cause pursuant to clauses (i), (ii) or (iv) of
this Section 5(b), the Company shall give the Executive reasonable opportunity
to remedy any condition, conduct, action or inaction of the Executive giving
rise to the violation or breach of such clause if such violation or breach is
remediable.

          6.   Consequences of Termination of Employment Period.

          (a)  Benefits Upon Termination.  If the Employment Period terminates
for any reason, the Executive (or the Executive's executor, administrator or
other legal representative, as the case may be) shall be entitled to receive the
following benefits:

          (i)    within 30 days after the amount in question is reasonably
     determinable (1) base salary payable through the date of termination of
     employment, (2) unpaid annual incentive compensation for the calendar year
     immediately preceding the date of such termination, and (3) reimbursement
     of proper expenses incurred through the date of such termination;

          (ii)   any previously-granted earnings performance units shall be
     treated in accordance with the then existing terms of the Company's
     Earnings Performance Plan; and

          (iii)  participation (by the Executive or the Executive's qualified
     dependents, as the case may be) in all other applicable benefit plans or
     programs in accordance with the

                                      -5-
<PAGE>

     provisions thereof applicable to terminated employees (or their qualified
     dependents, as the case may be).

          (b)  Additional Benefits Upon Qualifying Termination.  If the
Employment Period terminates prior to March 31, 2004 (or any mutually agreed-
upon extended expiration of the Employment Period) for a reason set forth in
Section 5(a), the Executive (or the Executive's executor, administrator or other
legal representative, as the case may be) shall be entitled to receive the
following additional benefits:

          (i)   within 30 days after the amount in question is reasonably
     determinable, annual incentive compensation and stock options for the
     calendar year in which such termination shall have occurred, prorated
     through the date of such termination based on actual results of operations
     for such full calendar year;

          (ii)  if the Qualifying Termination is for any reason other than death
     or Disability:

          (1)  each stock option granted to the Executive by the Company on or
               after the Effective Date then held by the Executive shall on the
               date of such termination be 100% vested;

          (2)  for the lesser of 30 months or the remainder of the scheduled
               term of the Employment Period, the Executive shall receive annual
               base salary at the rate in effect as of the termination of the
               Executive's employment; provided that (A) any agreed-upon
               reduction in the Executive's base salary during the Employment
               Period shall not be taken into account for purposes of
               determining the base salary to be paid to the Executive under
               this subparagraph (2), and (B) the Company shall pay this benefit
               in one lump sum (without discount) within 90 days after the
               Executive's termination of employment, and

          (3)  for the four-year period immediately following the Executive's
               termination of employment, he shall become a consultant to the
               Company under Section 4 above, with the corresponding benefits
               described in that Section;

          (iii)  if the Qualifying Termination is due to the Executive's death
     or Disability, the Executive or the Executive's executor, administrator or
     other legal representative, as the case may be, shall receive the
     consulting benefits described in Section 4(c) above for the four-year
     Consulting Period; subject in the event of Disability to the same
     conditions that would apply under Section 4(d) upon Disability during the
     Consulting Period; and

          (iv)   if the Qualifying Termination is due to the Executive's death,
     in addition to the consulting benefits described in Section 4(c) above, for
     the six-month period immediately following the Executive's death, the
     Executive's executor or administrator

                                      -6-
<PAGE>

     shall receive the Executive's base salary at the rate in effect at the time
     of the Executive's death.

          7.   Federal and State Withholding.  The Company shall deduct from the
amounts payable to the Executive pursuant to this Agreement the amount of all
required federal and state withholding taxes in accordance with the Executive's
Form W-4 on file with the Company and all applicable social security and
Medicare taxes.

          8.   Noncompetition; Nonsolicitation; Confidentiality.

          (a)  Covenant Not to Compete.  The Executive acknowledges that in the
course of his employment with the Company pursuant to this Agreement and the
BJK&E Agreement, the Executive has and will become familiar with confidential
information of the Company and its subsidiaries, affiliates and clients, and
that the Executive's services are of special, unique and extraordinary value to
the Company.  Except with the prior written consent of the Board, during the
Employment Period and the Consulting Period (including what would have been the
remaining scheduled terms of the Employment Period and the Consulting period but
for the Executive's resignation or termination for "Cause"):

          (i)    the Executive shall not engage in any activities, whether as
     employer, proprietor, partner, stockholder (other than the holder of less
     than 5% of the stock of a corporation the securities of which are traded on
     a national securities exchange or in the over-the-counter market),
     director, officer, employee or otherwise, in competition with (1) the
     businesses conducted at the date hereof by the True North Group or (2) any
     business in which the True North Group is substantially engaged at any time
     during the Employment Period or the Consulting Period;

          (ii)   the Executive shall not directly or indirectly solicit, call
     on, perform services for or otherwise do business with, or interfere in any
     way with the Company's relationship with any customer, client or other
     business relationship of the businesses conducted by the True North Group
     as of the date hereof or of any business in which the True North Group is
     substantially engaged at any time during the Employment Period or the
     Consulting Period;

          (iii)  the Executive shall not induce or attempt to persuade any
     employee of the True North Group to terminate the employee's employment
     relationship with the True North Group.

          (b)    Confidential Information and Trade Secrets.  The Executive
shall not, at any time during the Employment Period or thereafter, make use of
any bidding information (or computer programs thereof) of the True North Group,
nor divulge any trade secrets or other confidential information of the True
North Group, except to the extent that such information becomes a matter of
public record, is published in a newspaper, magazine or other periodical
available to the general public or as the Company may so authorize in writing;
and when the Executive shall cease to be employed by the Company, the Executive
shall surrender to the

                                      -7-
<PAGE>

Company all Company records and other documents obtained by him or entrusted to
him during the course of his employment hereunder (together with all copies
thereof) which pertain specifically to any of the businesses covered by the
covenants in Section 8(a)(i) or which were paid for by the True North Group;
provided, however, that the Executive may retain copies of such documents as
necessary for the Executive's personal records for federal income tax purposes.

          (c)  Scope of Covenants; Remedies.  The following provisions shall
apply to the covenants of the Executive contained in this Section:

          (i)    the covenants set forth in Sections 8(a)(i) and 8(a)(ii) shall
     apply within all territories in which the True North Group is actively
     engaged in the conduct of business during the Employment Period, including,
     without limitation, the territories in which customers are then being
     solicited;

          (ii)   each party intends and agrees that if in any action before any
     court or agency legally empowered to enforce the covenants contained in
     Sections 8(a) and 8(b) any term, restriction, covenant or promise contained
     therein is found to be unreasonable and accordingly unenforceable, then
     such term, restriction, covenant or promise shall be deemed modified to the
     extent necessary to make it enforceable by such court or agency; and

          (iii)  the covenants contained in Sections 8(a) and 8(b) shall survive
     the conclusion of the Executive's employment by the Company.

          9.   Nondisparagement; Cooperation.  (a) The Executive shall not, at
any time during his employment with the Company or thereafter, make any public
or private statement to the news media, to any True North Group competitor or
client, or to any other individual or entity, if such statement would disparage
any of the True North Group, any of their respective businesses or any director
or officer of any of them or such businesses or would have a deleterious effect
upon the interests of any of such businesses or the stockholders or other owners
of any of them; provided, however, that the Executive shall not be in breach of
this restriction if such statements consist solely of (i) private statements
made to any officers, directors or employees of any of the True North Group by
the Executive in the course of carrying out his duties pursuant to this
Agreement or his duties as a director or officer, or (ii) private statements
made to persons other than clients or competitors of any of the True North Group
(or their representatives) or members of the press or the financial community
that do not have a material adverse effect upon any of the True North Group; and
provided further that nothing contained in this Section 9(a) or in any other
provision of this Agreement shall preclude the Executive from making any
statement in good faith that is required by law, regulation or order of any
court or regulatory commission, department or agency.

          (b)  The Company shall not, at any time during the Executive's
employment with the Company or thereafter, authorize any person to make, nor
shall the Company condone the making of, any statement, publicly or privately,
that would disparage the Executive;

                                      -8-
<PAGE>

provided, however, that the Company shall not be in breach of this restriction
if such statements consist solely of (i) private statements made to any
officers, directors or employees of the True North Group or (ii) private
statements made to persons other than clients or competitors of any of the True
North Group (or their representatives) or members of the press or the financial
community that do not have a material adverse effect upon the Executive; and
provided further that nothing contained in this Section 9(b) or in any other
provision of this Agreement shall preclude any officer, director, employee,
agent or other representative of any of the True North Group from making any
statement in good faith that is required by any law, regulation or order of any
court or regulatory commission, department or agency.

          10.  Enforcement.  The parties hereto agree that the Company would be
damaged irreparably in the event that any provision of Section 8 or 9 of this
Agreement were not performed in accordance with its terms or were otherwise
breached and that money damages would be an inadequate remedy for any such
nonperformance or breach.  Accordingly, the Company and its successors or
permitted assigns shall be entitled, in addition to other rights and remedies
existing in their favor, to an injunction or injunctions to prevent any breach
or threatened breach of any of such provisions and to enforce such provisions
specifically (without posting a bond or other security).  Each of the parties
agrees that he or it will submit himself or itself to the personal jurisdiction
of the courts of the State of New York in any action by the other party to
enforce an arbitration award against him or it or to obtain interim injunctive
or other relief pending an arbitration decision.

          11.  Survival.  Sections 8, 9 and 10 of this Agreement shall survive
and continue in full force and effect in accordance with their respective terms,
notwithstanding any termination of the Employment Period.

          12.  Arbitration; Certain Costs.  Any dispute or controversy between
the Company and the Executive, whether arising out of or relating to this
Agreement, the breach of this Agreement, or otherwise, shall be settled by
arbitration in New York, New York administered by the American Arbitration
Association in accordance with its Commercial Rules then in effect and judgment
on the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof.  The arbitrator shall have the authority to award any
remedy or relief that a court of competent jurisdiction could order or grant,
including, without limitation, the issuance of an injunction.  However, either
party may, without inconsistency with this arbitration provision, apply to any
court having jurisdiction over such dispute or controversy and seek interim
provisional, injunctive or other equitable relief until the arbitration award is
rendered or the controversy is otherwise resolved.  Except as necessary in court
proceedings to enforce this arbitration provision or an award rendered
hereunder, or to obtain interim relief, neither a party nor an arbitrator may
disclose the existence, content or results of any arbitration hereunder without
the prior written consent of the Company and the Executive.  The Company and the
Executive acknowledge that this Agreement evidences a transaction involving
interstate commerce.  Notwithstanding any choice of law provision included in
this Agreement, the United States Federal Arbitration Act shall govern the
interpretation and enforcement of this arbitration provision.

                                      -9-
<PAGE>

          13.  Notice.  All notices and other communications required or
permitted hereunder shall be in writing and shall be deemed to have been duly
given when personally delivered or faxed five days after deposit in the United
States mail, certified and return receipt requested, postage prepaid, addressed
(a) if to the Executive, to the most recent address then shown on the employment
records of the Company, with a copy to Bruce Bodner, 250 Park Avenue South., New
York, NY  10003 (fax: 212-353-8454), and if to the Company, to True North
Communications Inc., 101 East Erie Street, Chicago, Illinois 60611-2897,
Attention:  General Counsel, or (b) to such other address as either party may
have furnished to the other in writing in accordance herewith, except that
notices of change of address shall be effective only upon receipt.

          14.  Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is determined to be
invalid, illegal or unenforceable in any respect under applicable law or rule in
any jurisdiction, such invalidity, illegality or unenforceability shall not
affect the validity, legality or enforceability of any other provision of this
Agreement or the validity, legality or enforceability of such provision in any
other jurisdiction, but this Agreement shall be reformed, construed and enforced
in such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein.

          15.  Entire Agreement.  This Agreement constitutes the entire
agreement and understanding between the parties with respect to the subject
matter hereof and supersedes and preempts the BJK&E Agreement and any other
prior understandings, agreements or representations by or between the parties,
written or oral, which may have related in any manner to the subject matter
hereof.

          16.  Successors and Assigns.  This Agreement shall be enforceable by
the Executive and the Executive's heirs, executors, administrators and legal
representatives, and by the Company and its successors and permitted assigns.
Any successor or permitted assign of the Company shall assume by instrument
delivered to the Executive the liabilities of the Company hereunder.  This
Agreement shall not be assigned by the Company other than to a successor
pursuant to a merger, consolidation or transfer of all or substantially all of
the capital stock or assets of the Company.

          17.  Governing Law.  This Agreement shall be governed by and construed
and enforced in accordance with the internal laws of the State of New York
without regard to principles of conflict of laws.

          18.  Amendment and Waiver.  The provisions of this Agreement may be
amended or waived only by the written agreement of the Company and the
Executive, and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.

                                      -10-
<PAGE>

          19.  Counterparts. This Agreement may be executed in two counterparts,
each of which shall be deemed to be an original and both of which together shall
constitute one and the same instrument.

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

                                       TRUE NORTH COMMUNICATIONS INC.

                                       By: /s/ David A. Bell
                                          ----------------------------------
                                               David A. Bell,
                                               Chief Executive Officer

                                       By: /s/ Marilyn R. Seymann
                                          ----------------------------------
                                               Marilyn R. Seymann,
                                               Chairman of the Compensation
                                               Committee of the Board of
                                               Directors

                                       EXECUTIVE

                                           /s/ Leo-Arthur Kelmenson
                                          ----------------------------------
                                               Leo-Arthur Kelmenson

                                     -11-

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