Document:

FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 
EXHIBIT 10.42

 
FOURTH AMENDMENT TO 
REVOLVING CREDIT AGREEMENT AND WAIVER 
 
FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER, dated as of February 24, 2003 (this “Amendment”), by and among
DIGITAS LLC (the “Borrower”), a Delaware limited liability company, and DIGITAS INC., a Delaware corporation, BRONNER SLOSBERG HUMPHREY INC., a Massachusetts corporation, and BSH HOLDING LLC, a Delaware limited
liability company, as Guarantors, and FLEET NATIONAL BANK, a national banking association, and the other lending institutions listed on Schedule 1 to the Credit Agreement (collectively, the “Banks”) and FLEET NATIONAL
BANK as agent for the Banks (the “Agent”), amending certain provisions of the Revolving Credit Agreement, dated as of July 25, 2000 (as amended by the First Amendment, dated as of June 29, 2001, the Second Amendment, dated as of
November 26, 2001, and Third Amendment, dated as of September 30, 2002, the “Credit Agreement”), by and among the Borrower, the Guarantors, the Banks and the Agent. Terms not otherwise defined herein which are defined in the Credit
Agreement shall have the same respective meanings herein as therein. 
 
WHEREAS, the Borrower and the Banks desire to amend the Credit Agreement and waive certain provisions thereof as provided more fully herein below; 
 
NOW THEREFORE, in consideration of the mutual agreements contained in the Credit Agreement and herein
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 
§1. Amendment to the Credit Agreement. The Credit Agreement is hereby amended as follows: 
 
(a) The definition of “Applicable
Margin” set forth in §1.1 of the Credit Agreement is amended by deleting such definition and restating it in its entirety as follows: 
 
Applicable Margin. The Applicable Margin shall be the applicable margin set forth below: 
 

	 PRIME RATE
 LOANS

	    	 EUROCURRENCY
 RATE LOANS

	 	    	 LETTER OF
 CREDIT
 FEE

	 	    	 COMMITMENT
 FEE RATE

	 
	 0%
	    	 3.00
	 %
	    	 3.00
	 %
	    	 0.250
	 %

 
(b) The first paragraph of the definition of “Borrowing Base” set forth in §1.1 of the Credit Agreement is amended by deleting such definition and restating it in its entirety as follows: 
 
Borrowing Base. At the relevant time
of reference thereto, an amount determined by the Agent by reference to the most recent Borrowing Base Report delivered to the Banks pursuant to §9.4(h), as adjusted pursuant to the provisions below, which is equal to the sum of seventy-five
percent (75%) 
 

 
of Eligible
Accounts Receivable plus eighty percent (80%) of the cash balance in the Segregated Account. 
 
(c) The definition of “Revolving Credit Loan Maturity Date” set forth in §1.1 of the Credit
Agreement is amended by deleting the date “July 25, 2003” and substituting the date “February 23, 2006” therefor. 
 
(d) The definition of “Total Funded Indebtedness” set forth in §1.1 of the Credit Agreement is
amended by adding the following new clause (b) and redesignating the existing clauses (b) and (c) as clauses (c) and (d), respectively: 
 
(b) the Maximum Drawing Amount of all Letters of Credit, 
 
(e) Section 1.1 of the Credit Agreement is further amended by adding the following new
definitions in the appropriate alphabetical order in such §1.1: 
 
Consolidated Operating Cash Flow: For any period, an amount equal to (a) Consolidated EBITDA for such period, less (b) the sum of (i) cash payments for all taxes paid during such period, plus (ii) to the
extent not already deducted in the determination of Consolidated EBITDA, Capital Expenditures made during such period to the extent permitted by §11.7, plus (iii) all cash lease payments made during such period under the leases for the
unoccupied real estate contemplated by the Charge. 
 
Segregated Account: See §9.13.2. 
 
TO Amount: The amount paid in cash by Digitas to its common stock shareholders in connection with a self tender offer which offer shall expire on March 25, 2003, unless extended by Digitas for up to ninety (90) days, and the
aggregate amount of which shall not exceed $25,000,000 plus the amount paid with respect to Digitas’ option to purchase, at its sole discretion, an additional 1,256,690 shares of its common stock; provided, however, any amounts paid in
excess of $25,000,000 shall be offset against the amounts allowable out of Digitas’ repurchase program such that total stock repurchases, including the TO Amount, for calendar year 2003 shall be less than $43,000,000. 
 
(f) Section 9.4(h) of the Credit
Agreement is amended by adding the following new text at the end of in such §9.4(h): 
 
along with evidence of any withdrawals from and/or deposits to the Segregated Account since delivery of the immediately preceding Borrowing Base Report 
 
(g) Section 9.13 of the Credit
Agreement is amended by deleting such §9.13 and restating it in its entirety as follows: 
 
9.13 Bank Accounts. 
 

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9.13.1. Depository Accounts. Each of the Parent Companies and the Borrower
will, and will cause each of their domestic Subsidiaries to, together with the employees, agents and other Persons acting on behalf of any Parent Company, the Borrower or such Subsidiary, receive and hold in trust for the Agent and the Banks all
payments constituting proceeds of Accounts Receivable or other Collateral which come into their possession or under their control and, immediately upon receipt thereof, deposit such payments in the form received, with any appropriate endorsements,
in one of the accounts designated as a depositary account on Schedule 8.20 other than the Segregated Account. 
 
9.13.2. Segregated Account. The Borrower will establish with Fleet a money market account or other depository account in
which the Borrower may from time to time maintain a cash balance solely for the purpose of enhancing its Borrowing Base availability and which shall be segregated for such purpose. The initial deposit shall be approximately $6,000,000.
Notwithstanding the foregoing, nothing in this §9.13.2 shall be construed to require the Borrower to maintain a balance in such Account in excess of its repayment obligations pursuant to §3.2 hereof. 
 
(g) Section 10.4 of the Credit
Agreement is amended by (i) deleting (A) the word “and” immediately before clause (c)(i) and substituting a comma therefor and (B) the words “and not more than $2,500,000 of such common stock is repurchased in any fiscal quarter”
set forth in clause (c)(i) of such §10.4, and (ii) by adding at the end of such §10.4 (immediately before the period) the following new clause (d): 
 
, and (d)(i) the Borrower shall be permitted to make Restricted Payments to Digitas solely to permit Digitas to pay the TO Amount on or
about March 31, 2003, unless the self tender offer referred to in the definition of “TO Amount” is extended for up to ninety (90) days by Digitas, up to the amount of such TO Amount, provided such Restricted Payment shall not be
made more than five (5) Business Days prior to the date any such TO Amount is required to be paid by Digitas and (ii) Digitas shall be permitted to pay the TO Amount. 
 
(h) Effective as of November 26, 2001, §§11.1 (Leverage Ratio) and
11.3 (Fixed Charge Coverage Ratio) of the Credit Agreement were deleted in their entirety, and in each case, the words “Intentionally Deleted” were substituted therefor. 
 
(i) Section 11.1 of the Credit Agreement is amended by deleting the words “Intentionally
Deleted” in such §11.1 and the following new provision substituted therefor: 
 
11.1 Profitable Operations. The Borrower will not permit Consolidated Net Income to be less than $1.00 for each of the following periods during each fiscal year: the three (3) month
period ended March 31, the six (6) month period ended June 30, the nine (9) month period 
 

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ended
September 30 and the twelve (12) month period ended December 31. 
 
(j) Section 11.2 of the Credit Agreement is amended by deleting such §11.2 and restating it in its entirety as follows: 
 
11.2 Minimum EBITDA. The Borrower will not as of the end of any Reference Period permit EBITDA
for such Reference Period to be less than $24,000,000. 
 
(k) Section 11.5 of the Credit Agreement is amended by deleting such §11.5 and restating such §11.5 in its entirety as follows: 
 
11.5 Fixed Charge Coverage Ratio. The Borrower will not, during any Reference Period, permit
the ratio of (a) Consolidated Operating Cash Flow to (b) the sum of (i) Consolidated Total Interest Expense for such Reference Period and (ii) all scheduled payments of principal on Indebtedness of the Parent Companies, the Borrower and their
Subsidiaries (including, without limitation, the principal component of Capitalized Lease payments) made or required to be made during such Reference Period to be less than 1.50:1.00. 
 
(l) Section 11.6 of the Credit Agreement is amended by deleting such §11.6 and
restating it in its entirety as follows: 
 
11.6. Ratio of Total Funded Indebtedness to EBITDA. The Borrower will not permit the ratio of Total Funded Indebtedness to EBITDA as of the last day of any Reference Period to exceed 1.50:1.00. 
 
(m) Schedule 8.20 to the Credit
Agreement is amended by adding the Segregated Account to such Schedule. 
 
§2. Limited Waiver. The Borrower has informed the Agent and the Banks that the Borrower has failed to comply with the covenants set forth in §§3.2 and 4.2(b) of the Credit Agreement for the
calendar month ended on 1/31/03, and has requested that the Banks waive such non-compliance. Upon the effectiveness of this Amendment, the Banks hereby waive compliance with the provisions of §§3.2 and 4.2(b) of the Credit Agreement solely
for the calendar month ended 1/31/03. Nothing contained in this waiver shall be construed to imply a willingness on the part of the Banks to grant any similar or other future waivers of any of the terms and conditions of the Credit Agreement or the
other Loan Documents. 
 
§3. Conditions
to Effectiveness. This Amendment shall be effective with respect to §1(f) of this Amendment as of the date specified in such §1(f) and, with respect to all other provisions of this Amendment, as of February 24, 2003 upon the
satisfaction of the following conditions precedent by 5:00 p.m. (Boston time) on February 24, 2003: 
 
(a) receipt by the Agent of an original counterpart signature to this Amendment, duly executed and delivered by the
Borrower and the Guarantors; 
 

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(b) receipt by the Agent of an amendment fee in the amount of $300,000; 
 
(c) receipt by the Agent of written notice from an authorized officer of Digitas that the self tender offer has
been announced by the board of directors of Digitas; 
 
(d) an initial deposit by the Borrower of a minimum of $6,000,000 into the Segregated Account; and 
 
(e) receipt by the Agent of resolutions of the Borrower and each of the Guarantors certified by an authorized
officer of each such entity with respect to the execution, delivery and performance of this Amendment. 
 
§4. Representations and Warranties. Each of the Borrower and each of the Guarantors hereby represents and
warrants to the Banks and the Agent as follows: 
 
(a) Representation and Warranties in the Credit Agreement. The representations and warranties of the Borrower and the Guarantors contained in the Credit Agreement were true and correct in all material respects as of the
date when made and continue to be true and correct in all material respects on the date hereof, except to the extent of changes resulting from transactions or events contemplated by the Credit Agreement and the other Loan Documents and changes
occurring in the ordinary course of business that singly or in the aggregate are not materially adverse to the Borrower or such Guarantor, or to the extent that such representations and warranties relate expressly to an earlier date. 
 
(b) Ratification, Etc.
Except as expressly amended or waived hereby, the Credit Agreement, and all documents, instruments and agreements related thereto, are hereby ratified and confirmed in all respects and shall continue in full force and effect. The Credit Agreement,
shall together with this Amendment, be read and construed as a single agreement. All references in the Credit Agreement or any related agreement or instrument shall hereafter refer to the Credit Agreement as amended hereby. 
 
(c) Authority, Etc. The
execution and delivery by the Borrower and each Guarantor of this Amendment and the performance by the Borrower and each Guarantor of all of its agreements and obligations under the Credit Agreement as amended hereby are within the authority of the
Borrower and each such Guarantor and have been duly authorized by all necessary action on the part of the Borrower and each of the Guarantors. 
 
(d) Enforceability of Obligations. This Amendment and the Credit Agreement as amended hereby constitute the
legal, valid and binding obligations of the Borrower and each Guarantor enforceable against the Borrower and each Guarantor in accordance with their terms, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or
other laws relating to or affecting generally the enforcement of, creditors’ rights and except to the extent that availability of the remedy of specific performance or injunctive relief is subject to the discretion of the court before which any
proceeding therefor may be brought. 
 

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(e) No Default. No Default or Event of Default has occurred and is continuing, and no Default or Event of Default will exist after execution and delivery of this Amendment. 
 
§5. No Other Amendments. Except as
expressly provided in this Amendment, all of the terms and conditions of the Credit Agreement and the other Loan Documents remain in full force and effect. Nothing contained in this Amendment (a) shall be construed to imply a willingness on the part
of the Banks to grant any similar or other future amendment or waiver of any of the terms and conditions of the Credit Agreement or the other Loan Documents and (b) shall in any way prejudice, impair or effect any rights or remedies of the Banks or
the Agent under the Credit Agreement or the other Loan Documents. 
 
§6. Execution in Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but which together shall constitute one instrument. 
 
§7. Expenses. Pursuant to §17 of the
Credit Agreement, all costs and expenses incurred or sustained by the Banks and the Agent in connection with this Amendment, including the fees and disbursements of legal counsel for the Agent in producing, reproducing and negotiating the Amendment,
will be for the account of the Borrower whether or not the transactions contemplated by this Amendment are consummated. 
 
§8. Miscellaneous. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS AND
SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW). The captions in this Amendment are for convenience of reference
only and shall not define or limit the provisions hereof. 
 
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 
 

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IN WITNESS
WHEREOF, the parties hereto have executed this Amendment as a document under seal as of the date first above written. 
 

	 DIGITAS LLC

	
	 By:
	 	 /s/ JEFFREY J. COTE

	 	 	 Name:
 Title:

 

	 DIGITAS INC., as a Guarantor

	
	 By:
	 	 /s/ JEFFREY J. COTE

	 	 	 Name:
 Title:

 

	 BRONNER, SLOSBERG HUMPHREY INC., as a Guarantor

	
	 By:
	 	 /s/ JEFFREY J. COTE

	 	 	 Name:
 Title:

 

	 BSH HOLDING LLC, as a Guarantor

	
	 By:
	 	 /s/ JEFFREY J. COTE

	 	 	 Name:
 Title:

 

	 FLEET NATIONAL BANK, individually and as Agent

	
	 By:
	 	 /s/ JOHN C. DUNNE

	 	 	 Name: John C. Dunne,
 Senior Vice President

 

-7-FORM OF EXECUTIVE EMPLOYMENT AGREEMENT

 
EXHIBIT 10.43

 
EMPLOYMENT AGREEMENT 
 
AGREEMENT dated as of [DATE] between Digitas LLC, a Delaware limited
liability company (the “Company”), and [EMPLOYEE NAME] (the “Executive”). 
 
WHEREAS, the Company and the Executive desire to set forth in a written agreement the terms and conditions of the Executive’s continuing employment by and continued services to the Company;

 
NOW, THEREFORE, the Company and the Executive agree as follows:

 
1. Effective Date. The Effective Date of this Agreement
is [DATE]. 
 
2. Employment Period. The period during
which the Company shall employ the Executive and the Executive shall serve the Company under this Agreement (the “Employment Period”) shall begin on the Effective Date and end on the second anniversary of the Effective Date;
provided, however, that on the second anniversary of the Effective Date and on each subsequent anniversary of such date (each such anniversary hereinafter referred to as a “Renewal Date”), the Employment Period shall be
automatically extended by one year, unless at least 60 days before a Renewal Date either party shall give notice to the other that the Employment Period shall not be so extended. 
 
3. Position and Duties. During the Employment Period, the Executive shall serve as with the duties and
responsibilities customarily assigned to such position and such other duties and responsibilities as the Board of Directors or the Chief Executive Officer of the Company shall from time to time assign to the Executive. 
 
4. Full-time Position. During the Employment Period, and excluding any
periods of vacation and sick leave to which the Executive is entitled, the Executive shall devote his full business attention and time to the business and affairs of the Company and shall use his best efforts to carry out such responsibilities
faithfully and efficiently. It shall not be considered a violation of the foregoing for the Executive to (a) serve on corporate, civic or charitable boards or committees, (b) deliver lectures, fulfill speaking engagements or teach at educational
institutions and (c) manage personal investments, so long as such activities do not materially interfere with the performance of the Executive’s responsibilities as an employee of the Company in accordance with this Agreement. 
 
5. Compensation. 
 
(a) Base Salary. As compensation for the Executive’s services
hereunder during the Employment Period, the Company shall pay to the Executive an annual salary (the “Base Salary”) of not less than [AMOUNT] payable at such times and intervals as the Company pays the base salaries of its other
executive employees. The Base Salary shall be reviewed annually during the Employment Period for possible increase. The Base Salary shall not be reduced after any such increase, and the term “Base Salary” shall thereafter refer to the Base
Salary as so increased. 
 
(b) Annual Bonus. In addition to
the Base Salary, for each fiscal year ending during the Employment Period the Executive shall be eligible for an annual bonus (the “Annual Bonus”) of up to [TARGET] of the annual Base Salary, the precise amount to be determined by
the Chief Executive Officer subject to approval by the Compensation Committee of the Board. Executive’s Annual Bonus 
 

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for the calendar year [YEAR] shall be prorated based on the Effective Date. Annual bonuses are
awarded for calendar year performance and are generally paid in March or April of the following year, subject to the conditions precedent that the Executive is employed on that date. Payment of the annual bonus will be made partially in cash and
partially in Digitas stock option. As more fully described below, all stock options granted to the Executive shall vest and become exercisable within 90 days after termination of employment within the two-year period following a Change in Control,
whether by the Company without Cause or by the Executive with Good Reason (as hereinafter defined). 
 
(c) Benefits. During the Employment Period, the Executive shall be entitled to receive employee benefits (including without limitation medical, life insurance and other welfare benefits and
benefits under retirement and savings plans), Company-provided parking and paid vacation, in each case to the same extent as, and on the same terms and conditions as, other similarly situated senior executives of the Company from time to time.

 
(d) Expenses. The Executive shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive during the Employment Period in carrying out his duties under this Agreement, provided that the Executive complies with the policies, practices and procedures of the Company
for submission of expense reports, receipts, or similar documentation of such expenses. 
 
6. Termination of Employment. 
 
(a) Termination by the Company. The Executive’s employment may be terminated by the Company under any of the following circumstances: 
 
(i) upon the “Disability’ of the Executive, defined as the inability of the Executive to perform
his duties hereunder on a full-time basis by reason of physical or mental incapacity, sickness or infirmity that continues for more than 180 days or for periods aggregating more than 180 days during any period of 365 consecutive days; 
 
(ii) for “Cause,” as defined below; or 
 
(iii) for any other reason (a termination without
“Cause”). 
 
(b) Definition of “Cause”.
“Cause” means and shall be limited to: 
 
(i) wrongful misappropriation of the funds or property of the Company; 
 
(ii) use of alcohol or illegal drugs interfering with the performance of the Executive’s obligations, continuing after written warning of such actions; 
 
(iii) admission, confession, indictment or plea bargain to, or
conviction of, a felony, or of any crime involving moral turpitude, dishonesty, theft, unethical or unlawful conduct; 
 
(iv) commission of any willful, intentional or grossly negligent act which could reasonably be expected to injure the reputation, business
or business relationships of the Company or which may tend to bring the Executive or the Company into disrepute, or the willful commission of any act which is a breach of the Executive’s fiduciary duties to the Company; 
 

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(v) the
deliberate or willful failure by the Executive (other than by reason of the Executive’s physical or mental illness, incapacity or disability) to substantially perform his duties with the Company and the continuation of such failure for a period
of 30 days after delivery by the Company to the Executive of Notice specifying the scope and nature of such failure and the Company’s intention to terminate the Executive for Cause. 
 
(vi) commission of any act which constitutes a material breach of the policies of the Company, including but
not limited to the disclosure of any confidential information or trade secrets pertaining to the Company or any of its clients. 
 
For purposes of this Section, any act or failure to act of the Executive shall not be considered “willful” unless done or omitted to be done by
the Executive not in good faith and without reasonable belief that the Executive’s action or omission was in the best interest of the Company. The determination that any of the above described events constitute Cause shall be made by the Board
in its sole discretion. The Company shall give the Executive Notice of termination specifying which of the foregoing provisions is applicable. The effective date of the Executive’s termination of employment with the Company (the “Date of
Termination”) shall be the 30th business day after such Notice is given or such other date as the Company and the Executive shall agree. 
 
(c) Termination by the Executive. The Executive’s employment may be terminated by the Executive under either of the following circumstances:

 
(i) for “Good Reason,” as defined
below; or 
 
(ii) for any other reason (a
termination without “Good Reason”). 
 
(d) Definition
of “Good Reason”. “Good Reason” means termination at the Executive’s initiative: 
 
(i) within two years after a corporate Change in Control (as defined in Exhibit A to this Agreement) if the Executive’s title,
duties, status, reporting relationship, authority, responsibilities or compensation have been materially and adversely affected; or if the Executive’s principal place of employment immediately prior to the Change of Control is relocated to a
location more than 50 miles from such place of employment. 
 
(ii) after any material failure by the Company to comply with any provision of Section 5 of this Agreement, unless such failure is remedied by the Company within ten business days after receipt of Notice thereof from the Executive.

 
The Executive shall give the Company Notice of termination
specifying which of the foregoing provisions is applicable and the factual basis therefor, and if the Company fails to remedy such material failure, the Date of Termination shall be the 30th business day after such Notice is given or such other date
as the Company and the Executive shall agree. 
 
(e) Severance
Benefits upon Certain Terminations. If during the Employment Period the Executive’s employment is terminated by the Company without Cause or by the Executive for Good Reason, the Executive shall not be entitled to any further compensation
or benefits provided for under this Agreement except as follows: 
 

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(i) For a
period of twelve months after the Date of Termination, the Company shall continue to pay the Executive the Base Salary at the rate in effect immediately before the Date of Termination (but, in the case of a termination by the Executive for Good
Reason, disregarding any reduction thereof that was the basis for such termination). 
 
(ii) The Company shall continue to provide the Executive with group health benefits pursuant to COBRA (the “Group Health Benefits”) for twelve months after the Date of Termination, and shall
provide the Executive with information and access to enable the Executive to continue COBRA coverage thereafter for the maximum permitted duration at the Executive’s expense; provided, that during any period when the Executive is
eligible to receive any such benefits under another employer-provided plan or a government plan, the Group Health Benefits or substitute benefits provided by the Company under this clause may be made secondary to those provided under such other
plan; 
 
(iii) The Company shall pay the Executive
any amounts that have been earned but not yet paid under Section 5 hereof. 
 
(iv) Receipt of severance benefits is conditioned on Executive’s execution and delivery of a separation agreement including a general release of claims, in a form acceptable to the Company, and on
Executive’s strict compliance with the Employee Confidential Information, Noncompetition and Ownership Agreement substantially in the form attached. 
 
(f) Severance Benefits upon Terminations after Corporate Change in Control. In addition to the severance benefits provided for in Section 6(e), if
within two years after a corporate Change in Control (as defined in Exhibit A to this Agreement) the Executive’s employment is terminated by the Company without Cause or by the Executive for Good Reason, the Executive shall be entitled to
severance benefits as follows: 
 
(i) For a period
of twelve months after the one-year anniversary of the Date of Termination, the Company shall continue to pay the Executive the Base Salary at the rate in effect immediately before the Date of Termination (but, in the case of a termination by the
Executive for Good Reason, disregarding any reduction thereof that was the basis for such termination). 
 
(ii) Stock options previously granted to the Executive shall become vested immediately and shall be exercisable in accordance with the
applicable stock option plan. 
 
(g) Additional Limitation.

 
(i) Anything in this Agreement to the contrary
notwithstanding, in the event that any compensation, payment or distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the
“Severance Payments”), would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), the following provisions shall apply: 
 
(A) If the Severance Payments, reduced by the sum of (1) the
Excise Tax and (2) the total of the Federal, state, and local income and employment taxes payable by the Executive on the amount of the Severance Payments which are in excess of the Threshold Amount, are greater than or equal to the Threshold
Amount, the Executive shall be entitled to the full benefits payable under this Agreement. 
 

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(B) If the
Threshold Amount is less than (x) the Severance Payments, but greater than (y) the Severance Payments reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes on the amount of the
Severance Payments which are in excess of the Threshold Amount, then the benefits payable under this Agreement shall be reduced (but not below zero) to the extent necessary so that the maximum Severance Payments shall not exceed the Threshold
Amount. To the extent that there is more than one method of reducing the payments to bring them within the Threshold Amount, the Executive shall determine which method shall be followed; provided that if the Executive fails to make such
determination within 45 days after the Company has sent the Executive Notice of the need for such reduction, the Company may determine the amount of such reduction in its sole discretion. 
 
For the purposes of this Section 6(f), “Threshold Amount” shall mean three times the Executive’s “base
amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or
penalties incurred by the Executive with respect to such excise tax. 
 
(ii) The determination as to which of the alternative provisions of Section 6(f)(i) shall apply to the Executive shall be made by Arthur Andersen or any other nationally recognized accounting firm selected by the Company
(the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the Date of Termination, if applicable, or at such earlier time as is reasonably requested by
the Company or the Executive. For purposes of determining which of the alternative provisions of Section 6(f)(i) shall apply, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation
applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual taxation in the state and locality of the Executive’s residence on the Date
of Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. Any determination by the Accounting Firm shall be binding upon the Company and the Executive. 
 
(h) Other Terminations. If the Executive’s employment is
terminated by reason of the Executive’s death or for any other reason other than by the Company without Cause or by the Executive for Good Reason, the Executive shall not be entitled to any compensation under this Agreement other than:

 
(i) Base Salary through the 90th day following
the Date of Termination in the case of the Executive’s death, and through the Date of Termination in all other cases, 
 
(ii) any unpaid Annual Bonus that Executive has earned fully in accordance with Section 5(b) above, for a fiscal year that ended before
the Date of Termination, 
 
(iii) benefits under
and subject to the terms and conditions of any long-term disability insurance coverage in the case of termination because of Disability, and 
 
(iv) vested benefits, if any, required to be paid or provided by law. 
 
7. Employee Confidential Information, Noncompetition and Ownership Agreement. This Agreement does not affect the
Executive’s obligations under the Employee Confidential Information, Noncompetition and Ownership Agreement (the “Confidentiality Agreement”) previously signed by the 
 

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Executive. Such obligations continue in full force and effect according to the terms of the
Confidentiality Agreement. 
 
8. No Mitigation. In no event
shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and, except as specifically provided in Section 6(e)(ii)
(health benefits) above, such amounts shall not be reduced, regardless of whether the Executive obtains other employment. 
 
9. Notices. 
 
(a) Each notice, demand, request, consent, report, approval or communication (hereinafter “Notice”) which is or may be required to be given by
any party to the other party in connectionwith this Agreement shall be in writing and given by facsimile, personal delivery, receipted delivery services, or by certified mail, return receipt requested, prepaid and properly addressed to the other
party as shown below. 
 
(b) Notices shall be effective on the date
sent via facsimile, the date delivered personally or by receipted delivery service, or three (3) days after the date mailed: 
 

	 If to the Company:
	  	 Digitas LLC

	 	  	 Prudential Tower

	 	  	 800 Boylston Street

	 	  	 Boston, MA 02199

	 	  	 Attn: General Counsel

	
	 If to the Executive:
	  	 [EMPLOYEE NAME

	 	  	 STREET ADDRESS

	 	  	 CITY, ST ZIP CODE]

 
Or at the residence
address most recently filed with the Company. 
 
(c) Each party may
designate by Notice to the other a new address to which any Notice may thereafter be given. 
 
10. Entire Agreement. This Agreement shall constitute the entire agreement of the parties with respect to the subject matter hereof and shall supersede all prior agreements whether oral or
written with the Company and its predecessor entities with respect to the subject matter hereof. 
 
11. Successors and Assigns. 
 
(a) This Agreement is personal to the Executive and shall not be assignable by the Executive without the prior written consent of the Company. This Agreement shall inure to the benefit of and be enforceable by the
Executive’s legal representatives. 
 
(b) The Company may
assign this Agreement to any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company that expressly agrees to assume and perform this Agreement
in the same manner and to the same extent that the Company would have been required to perform it if no such assignment 
 

6 

had taken place, and “Company” shall include any such successor that assumes and agrees to
perform this Agreement, by operation of law or otherwise. 
 
12.
Miscellaneous. 
 
(a) This Agreement shall be governed by
and construed in accordance with the laws of the Commonwealth of Massachusetts, without reference to principles of conflict of laws. 
 
(b) This Agreement may not be amended or modified except by a written agreement executed by the parties hereto. 
 
(c) The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement. If any provision of this Agreement shall be held invalid or unenforceable in part, the remaining portion of such provision, together with all other provisions
of this Agreement, shall remain valid and enforceable and continue in full force and effect to the fullest extent consistent with law. 
 
(d) The Executive’s or the Company’s failure to insist upon strict compliance with any provision of, or to assert any right under, this
Agreement shall not be deemed to be a waiver of such provision or right or of any other provision of or right under this Agreement. 
 
(e) The headings contained in this Agreement are for convenience only and in no manner shall be construed as part of this Agreement. 
 
(f) This Agreement may be executed simultaneously in two or more counterparts,
each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
 
(g) When required by the context, references to “the “Company” in this Agreement shall mean or shall include Digitas LLC, its successors
and assigns (subject to the provisions of Section 11 (b), its predecessors and its Affiliates. Affiliates are companies that control, that are controlled by, or are under common control with Digitas LLC. 
 
IN WITNESS WHEREOF, the Executive and the Company have executed this Agreement
as of the day and year first above written. 
 

	 [EMPLOYEE NAME]
	 	 	 	 DIGITAS LLC

	
	
	 	 	 	

	 Employee Name
  
 Date:         /
        /        
	 	 	 	 [AUTHORIZED OFFICER]
  
 Date:
        /         /        

 

7 

 
EXHIBIT A

DEFINITION OF “CHANGE IN CONTROL” 
 
“Change in Control” shall mean any of the following: 
 
(a) any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, as amended (the “Act”) (other than the Company, any of its subsidiaries, or any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Company or any of its subsidiaries),
together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the Act) of such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Act), directly
or indirectly, of securities of the Company representing twenty-five percent (25%) or more of either (A) the combined voting power of the Company’s then outstanding securities having the right to vote in an election of the Company’s Board
(“Voting Securities”) or (B) the then outstanding shares of Company’s common stock, par value $0.01 per share (“Common Stock”) (other than as a result of an acquisition of securities directly from the Company); or

 
(b) persons who, as of the Commencement Date,
constitute the Company’s Board (the “Incumbent Directors”) cease for any reason, including, without limitation, as a result of a tender offer, proxy contest, merger or similar transaction, to constitute at least a majority of the
Board, provided that any person becoming a director of the Company subsequent to the Commencement Date shall be considered an Incumbent Director if such person’s election was approved by or such person was nominated for election by a vote of at
least a majority of the Incumbent Directors; but provided further, that any such person whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of members of the Board or other
actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board, including by reason of agreement intended to avoid or settle any such actual or threatened contest or solicitation, shall not be considered an
Incumbent Director; or 
 
(c) the stockholders of
the Company shall approve (A) any consolidation or merger of the Company where the stockholders of the Company, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such
term is defined in Rule 13d-3 under the Act), directly or indirectly, shares representing in the aggregate more than fifty percent (50%) of the voting shares of the Company issuing cash or securities in the consolidation or merger (or of its
ultimate parent corporation, if any), (B) any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Company or
(C) any plan or proposal for the liquidation or dissolution of the Company. 
 
Notwithstanding the foregoing, a “Change of Control” shall not be deemed to have occurred for purposes of the foregoing clause (a) solely as the result of an acquisition of securities by the Company which, by reducing the
number, of shares of Common Stock or other Voting Securities outstanding, increases the proportionate number of shares beneficially owned by any person to twenty-five percent (25%) or more of either (A) the combined voting power of all of the then
outstanding Voting Securities or (B) Common Stock; provided, however, that if any person referred to in this sentence shall thereafter become the beneficial owner of any additional shares of Voting Securities or Common Stock (other than
pursuant to a stock split, stock dividend, or similar transaction or as a result of an acquisition of securities directly from the Company) and immediately thereafter beneficially owns twenty-five percent (25%) or more of either (A) the combined
voting power of all of the then outstanding Voting Securities or (B) Common Stock, then a “Change of Control” shall be deemed to have occurred for purposes of the foregoing clause (a). 
 

EXHIBIT A-1

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