Document:

EX-4.11:

 

Exhibit 4.11

EMPLOYMENT AGREEMENT

     The following terms set forth the agreement between Jack Klues (“Executive”), Publicis Groupe
S.A. (the “Company”) and the Starcom Worldwide division of Leo Burnett USA, Inc. (“SMV”)
(collectively, the “Parties”), effective as of July 1, 2004 (“Effective Date”).

     WHEREAS, Executive and the Philadelphia Merger Company f/k/a Bcom3 Group, Inc. have been party
to a Change in Control Agreement (“CIC Agreement”) dated February 26, 2002; and

     WHEREAS, the Company has now decided to offer and Executive has decided to accept continuing
employment at the Company, on the terms specified herein.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
to this Agreement, intending to be legally bound, hereby agree as follows:

     1. Definitions. For the purposes of this Agreement (the “Agreement”), the following
definitions apply:

          (a) Client. “Client” refers to (i) any entity or person that is a client of
the Company at the time of Executive’s separation, or if he is still employed, on the date
of his alleged violation of this Agreement; (ii) any entity or person who was a client of
the Company at any time during the one year period immediately preceding his separation, or
if he is still employed, during the one year period immediately preceding his alleged
violation of this Agreement; and (iii) any prospective client to whom the Company had made a
formal presentation or similar offering of services during the one year period immediately
preceding his separation or, if he is still employed, during the one year period immediately
preceding his alleged violation of this Agreement.

          (b) Company. The “Company” refers to Publicis Groupe, S.A. and, where the
context provides, its predecessors, successors, assigns, and any subsidiary, affiliated, or
related companies of Publicis Groupe, S.A., as well as its successors, assigns,
subsidiaries, affiliates and, related companies,

          (c) Confidential Information. “Confidential information” includes, without any
limitation, the Company’s confidential intellectual property, research and development
information, business plans, unique selling, servicing methods and business techniques,
training, service and business manuals, vendor and product information, secrets, creative
concepts, advertising and marketing ideas and executions of those ideas (including slogans,
themes, strategies, music, characters and potential new products), the identity of Company
personnel assigned to specific projects, financial information regarding the Company and its
clients, research and consumer perception data and methodologies, media plans, direct and
integrated marketing strategies and Company commission/compensation arrangements as well as
any other information that constitutes a “trade secret” as that term is defined under the
Uniform Trade Secret Act; provided,

 

 

confidential information shall not include information what is publicly known (other
than through a wrongful disclosure by Executive). Confidential information may be disclosed
to Executive either orally or in writing or on disc or other media, and such information may
include graphic material.

          (d) Publicis Groupe Media. “Publicis Groupe Media” shall refer to Starcom
MediaVest Group (“SMG”), ZenithOptimedia Group (“ZOG”) and all agencies within the network
of agencies operated by ZOG and SMG. For the duration of the Term, Publicis Groupe Media
shall be exclusively responsible for the management of all media assets of the Company as of
the date hereof, other than the Saatchi and Saatchi U.S. media accounts for Toyota and
General Mills for so long as those accounts are assigned to and the responsibility of
Saatchi and Saatchi U.S., and any other media accounts as agreed by Executive. Executive
shall be the most senior executive of Publicis Groupe Media (Executive as CEO and as (and
when) successor Chairman as provided in Section 3(b)). Executive shall remain a member of
the Publicis Groupe Media Management Board and a member of Publicis Groupe’s management
group commonly referred to as the “P-12”. The Chief Executive Officer of the Company shall
before the end of 2005 propose the nomination of the Executive for appointment to the
Directoire by the Nomination Committee of the Company (provided, the failure of which
appointment in good faith shall not constitute a Constructive Discharge hereunder).

               Executive shall have no responsibility for any media assets that Publicis Groupe may
acquire after the effective date of this Agreement, unless the Company determines, at its
complete discretion, otherwise.

          (e) Termination for Cause. Termination for “Cause” means any of the following:
(i) indictment or conviction of a felony or a crime involving moral turpitude with respect
to the Company (other than Limited Vicarious Liability), or the commission of any other
willful act involving fraud with respect to the Company, provided, if any such indictment
does not result in a conviction (including a plea of guilty or no contest), then any such
termination of Executive shall be without Cause (unless the Directoire/Conseil of the
Company (“Board”) determines that there exist other grounds for a termination for “Cause”
hereunder); (ii) conduct tending to bring the Company into substantial public disgrace or
disrepute; (iii) continued and repeated failure or refusal to perform material duties
consistent with Executive’s position, as reasonably directed by the Company; (iv) the
commission of willful gross negligence or willful misconduct with respect to the performance
of Executive’s duties for the Company; or (v) the willful material breach of this Agreement
or of any substantial written policy adopted by the Company and given to the Executive,
including, but not limited to, confidentiality, conflicts of interest or standards of
business conduct. For the purposes of this Agreement: (A) no act or omission shall be
“willful” if conducted in good faith and with a reasonable belief that such conduct was in
the best interests of the Company, and (B) “Limited Vicarious Liability” shall mean any
liability which is (1) based on acts of the Company for which Executive is responsible
solely as a result of his office(s) with the Company and (2) provided that (x) he was not
directly involved in such acts and either had no prior knowledge of such intended actions or
promptly acted reasonably and in good faith to attempt to prevent the acts causing such
liability or (y) he did not have a

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reasonable basis to believe that a law was being violated by such acts. Failure to
attain financial or other business objectives shall not be deemed a failure to perform
duties unless it is due to continued and repeated failure to perform material duties
consistent with Executive’s position.

          (f) Constructive Discharge. “Constructive Discharge” means at any time during
the Term any of the following: (i) a material diminution in the Executive’s reporting
relationships, (ii) a material diminution in the Executive’s duties and responsibilities
taken as a whole, (iii) a reduction in his base salary, (iv) a material reduction in his
bonus opportunity or level of benefits other than a reduction in level of benefits that is
reasonably consistent with changes affecting all senior executives of the Company, (v)
requiring the Executive to relocate his office outside of Chicago, Illinois, or assigning
him duties that would reasonably require such relocation; (vi) the Company’s failure to
assign and to cause a successor to assume this Agreement, and (vii) any other material
breach by the Company of this Agreement. Failure to complete the integration of media
assets by December 31, 2004 shall not constitute constructive discharge.

     2. Employment. The Company shall continue to employ Executive, and Executive accepts
such employment with the Company, upon the terms and subject to the conditions set forth in this
Agreement, for the period beginning on the Effective Date and ending as provided in Section 5 below
(the “Employment Period”).

     3. Position and Duties.

          (a) Executive will continue to be the Chief Executive Officer of SMG. As CEO,
Executive shall perform such executive, supervisory, managerial and consulting services to
the Company commensurate with his position as the Company may from time to time reasonably
request.

          (b) The Company is finalizing its internal plans to form a new Management Board,
referred to as Publicis Groupe Media to fortify its media assets, including the SMG and ZOG
media operations. Executive shall be a member of the P-12 and serve on the Management Board
of Publicis Groupe Media . Roger Haupt shall be Chairman of Publicis Groupe Media. When Mr.
Haupt retires, Executive shall, in addition to his duties herein, succeed Mr. Haupt as
Chairman. As Chairman of Publicis Groupe Media, Executive shall be the most senior
executive directly responsible for the management and operation of Publicis Groupe Media.
In these roles, Executive shall perform such executive, supervisory, managerial and
consulting services to the Company as are commensurate with his position as the Company may
from time to time reasonably request.

          (c) Subject to the rights and benefits of Executive under the terms of this Agreement,
SMV agrees to employ Executive during the Term, to make Executive’s services available to
the Company to be a member of the P-12 and to serve as a member, and later Chairman, of the
Management Board of Publicis Groupe Media, and to

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provide such compensation and benefits to Executive as are contained in this Agreement
or as later directed by the Company.

          (d) Executive shall devote his full time and attention to the Business and shall not
perform work outside the Company without the prior approval of the Company. However, the
Executive may devote reasonable time to activities such as supervision of personal
investments and activities involving professional, charitable, educational, religious and
similar types of activities, speaking engagements and membership on other boards of
directors, provided such activities do not interfere in any material way with the business
of the Company and are consistent with the terms of this Agreement; provided that, Executive
cannot serve on the board of directors of a publicly-traded company without the Company’s
written consent. The time involved in such activities shall not be treated as vacation
time. Executive shall be entitled to keep any amounts paid to him in connection with such
activities (e.g., director fees and honoraria).

          (e) Executive agrees that he shall abide by, and shall conduct business in accordance
with and subject to, all applicable policies and procedures of the Company, including all
employee and ethical policies of the Company, and all client conflict-of-interest policies
applicable to the Company or to subsidiaries of the Company generally, as such policies may
exist from time to time. Executive also understands and agrees that the business and
affairs of Publicis Groupe Media shall be conducted in accordance with Publicis Corporate
Policies (“PCP’s”) and the Company’s strict legal and ethical standards, including, without
limitation, compliance with all commercial, tax, labor and other laws (including the U.S.
Foreign Corrupt Practices Act).

     4. Compensation and Benefits.

          (a) Base Salary. As of July 1, 2004, Executive’s base salary will be
$800,000.00 per annum, which will be payable in regular installments in accordance with the
Company’s general payroll practices for salaried employees. The Company will review, and
consider increasing (but not decreasing), Executive’s base salary in the third quarter of
2005, to be effective January 1, 2006, on the basis of such business-related factors as it
considers relevant, including Company performance, client satisfaction, Executive’s
performance and industry data, in accordance with prior practice, (it being understood,
however, that the Company will not be required to make any such increase). Thereafter, the
Company biennially will review, and consider increasing (but not decreasing), Executive’s
then current base salary on the basis of such business-related factors.

          (b) Annual Incentive Compensation Plan. The Company maintains an Annual
Incentive Compensation Plan for the most senior officers of the Company, which pays a cash
bonus for each fiscal year that is based upon the performance results of the Company.
Executive’s target annual incentive opportunity is eighty percent (80%) of base salary for
complete achievement of Company goals in accordance with that plan. Depending on the
achievement of such goals, the range of Executive’s annual incentive opportunity shall range
from zero to one hundred and sixty percent (160%) of his base salary.

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          (c) Long-Term Incentive Plan. The Company is in the process of implementing a
long-term incentive plan. Executive will be a participant in that plan and will have
minimum, target and maximum award opportunities, and terms and conditions of award, no less
favorable than the most favorable arrangement for any other similarly situated executive of
the Company. The plan has been approved by the Publicis Groupe Board and disclosed in
documents filed with the SEC and the French COB. Once plan details are formally developed
and released, Executive shall be offered the opportunity to participate in that plan.

          (d) Expense Reimbursements. The Company will reimburse Executive for all
reasonable expenses incurred by him in the course of performing his duties under this
Agreement and in accordance with the policies of the Company in effect from time to time
with respect to travel and other business expenses, subject to the requirements that the
Company may establish from time to time with respect to reporting and documentation of such
expenses.

          (e) Vacation. Executive will be entitled to six (6) weeks of paid vacation per
year.

          (f) Benefits. Executive will be entitled to retirement, health (including
retiree medical insurance), life insurance, long-term disability and other benefits and
perquisites no less favorable than the benefits and coverage and perquisites provided to
other senior executive officers of the Company, subject to the terms and conditions of the
applicable plans. These benefits also are subject to change from time to time, so long as
any such change applies to all other similarly situated senior executive officers; provided,
(i) the Executive is a party to the Leo Burnett Company Executive Employment Consultancy
Arrangement dated June 20, 1997 (“EECA”) (providing, among other benefits, executive
consultancy payments and continuation of employee health benefits at active employee rates
for a period of five years after retiring as an officer of the Company), which is related to
the Executive’s service as a Leo Burnett Company, Inc. (and successor) director, and which
may not be revised or revoked except with the Executive’s express consent, and (ii) if, at
the termination of the five year period of coverage for such health benefit under the EECA,
medical retiree benefits are unavailable to Executive because of an amendment or termination
of the retiree medical program applicable to all otherwise covered similarly situated
executives of the Company, then the Company shall provide $50,000 to Executive for purposes
of purchasing alternative medical insurance.

          (g) Change in Control. Executive will participate in any change in control
arrangement adopted by the Company which applies to any executives of the P-12 who are not
members of the Directoire. If Executive is a member of the Directoire, he will participate
in any change in control arrangement adopted by the Company which applies to members of the
Directoire.

          (h) Stock Options. Subject to a contrary decision of the Directoire, if a
participant in the Company’s Stock Option Plan ceases to be employed within the Company by
reason of dismissal or retirement at or after his normal retirement age,

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options cease to be exercisable on the date of delivery of the notice of termination or
on the date of the actual departure from the Company, as the case may be, and are cancelled
three months later. In the event Executive retires after age 55 or is terminated without
cause, in the absence of extenuating circumstances the Chief Executive of the Company will
propose to the Directoire that they decide that Executive should keep his options and the
related rights as if he remained employed by the Company.

          (i) Taxes. All taxable compensation payable to the Executive shall be subject
to customary withholding taxes and such other employment taxes as required.

     5. Term and Termination. The Employment Period shall extend through December 31, 2009
(“Term”). However, this employment relationship may be terminated by either party at any time
prior to the last day of the Term, provided that the following conditions are observed. The date
on which the termination takes effect shall be the end of the Employment Period. Employment also
will end immediately upon Executive’s death or permanent total mental or physical disability or
incapacity (as determined by a mutually acceptable healthcare provider).

          (a) Prior to the last day of the Term, Executive may terminate his employment for the
following reasons:

          (i) Voluntary Resignation. Should Executive’s employment be terminated as a result of
Executive’s voluntary resignation, Executive must provide the Company with six (6) months
notice of such termination; provided that the Company shall retain the sole and absolute
right to suspend the Executive, with pay, active employee benefits and service credit under
all benefit plans and incentive awards, for any or all of such six month period.

          (ii) Constructive Discharge. If the Executive decides to terminate employment due to
Constructive Discharge, he must give the Company thirty (30) days notice of his intent and
provide the Company with a reasonable opportunity within which period to cure the issues
that the Executive believes constitute Constructive Discharge; provided that the Company
shall retain the sole and absolute right to suspend the Executive, with pay, active employee
benefits and service credit under all benefit plans and incentive awards, for any or all of
such thirty (30) day period.

          (b) Prior to the last day of the Term, Employment may be terminated by the Company as
follows:

          (i) Termination for Cause. If the Company decides to terminate the Executive for
Cause, it must give the Executive thirty (30) days notice of its intent and provide the
Executive with a reasonable opportunity within which period to cure the issues that the
Company believes constitute Cause; provided that the Company shall retain the sole and
absolute right to suspend the Executive, with pay, active employee benefits and service
credit under all benefit plans and incentive awards, for any or all of such thirty (30) day
period.

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          (ii) Termination Other Than for Cause. The Company may terminate the Executive for any
reason other than for Cause upon six (6) months written notice to the Executive; provided
that the Company shall retain the sole and absolute right to suspend the Executive, with
pay, active employee benefits and service credit under all benefit plans and incentive
awards, for any or all of such six (6) month period.

     6. Final Compensation and Severance Compensation.

          (a) If the Executive’s employment terminates pursuant to Section 5(a)(i) or 5(b)(i),
Executive shall be entitled to the following final compensation:

          (1) Any accrued but unpaid salary and unreimbursed expenses due as of the last day of
the Employment Period;

          (2) Any amounts payable under any of the Company’s benefit plans in accordance with the
terms of those plans;

          (3) Any guaranteed or other bonus that is earned by virtue of continued employment
through the last day of the performance period but which is not yet paid;

          (4) Any amount owing with respect to accrued but unused vacation days as of the last
day of the Employment Period;

          (5) Benefits due under the EECA in accordance with the terms thereof; and

          (6) Subject to the provisions of Section 4(f)(ii) hereof, provided that he meets the
eligibility requirements, continued coverage under the Company’s Retiree Medical policy in
effect at that time after the end of any period covered by the EECA.

In the event, as of the date of termination, there is any difference between the policies of
Publicis Groupe Media and of any other functional unit of the Company, for which Executive
shall have responsibility, with respect to unused vacation days and Retiree Medical, subject
to Section 4(f)(ii), the policy that is more advantageous to the Executive shall apply as
such policy is in effect from time to time.

          (b) If Executive’s employment terminates pursuant to Section 5(a)(ii) or 5(b)(ii),
Executive shall be entitled to the final compensation set forth at Section 6(a) and the
compensation and benefits provided in this Section 6(b). Executive will receive twelve (12)
months of separation pay which will be paid to Executive in regular semi-monthly payments,
less required withholdings, plus twelve (12) months of outplacement assistance for senior
executives at a nationally-recognized firm selected by Executive and reasonably approved by
the Company. Executive’s severance payments will be equal to the sum of Executive’s base
salary, plus his target annual incentive award opportunity, at the time of termination
(without regard for any reduction in such compensation constituting grounds for Constructive
Discharge). Executive also will be eligible for a pro-rated amount of any annual incentive
compensation for the year of his termination,

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payable when such amounts are paid to other senior executives. Executive also will
continue to participate in the following benefits (at active employee rates), which benefit
plans are subject to change, (on a post-tax basis) during the one year separation period:
medical, dental, vision, health care flexible spending account, and employee assistance
program, followed by health benefits due under the EECA, thereafter followed by Executive’s
COBRA benefits and thereafter followed by Retiree Medical benefits (subject to Section
4(f)(ii) hereof). All amounts and benefits provided under the EECA shall be immediately
vested and shall be payable commencing on the day following the last day of the one year
separation period (and not on the Commencement Date otherwise provided therein).

          (c) No payment under this Section 6 shall be reduced by any amount the Executive may
earn or receive from employment or any other source of income after the end of the
Employment Period, and the Executive shall not have any obligation to seek other employment
or otherwise to mitigate Company’s payment obligations. Should Executive violate the
post-employment obligations contained in this Agreement, the Company may cease to make any
payments or benefits described in Section 6(b) or 6(c), as the case may be; provided, if the
Company suspends such payments or benefits on the grounds of an alleged such violation and
it is determined that Executive did not violate such obligations, then the Company shall pay
Executive, in addition to all such suspended amounts, interest for the duration of such
suspension at the prime rate, from time to time in effect (compounded calendar quarterly).

          (d) In consideration of the payments due under Section 6(b) or 6(c), the Company and
the Executive shall sign (and not revoke) a mutually agreeable full mutual release of all
claims between the Executive and the Company.

          (e) Upon Executive’s death or termination of his employment due to a permanent total
mental or physical disability or incapacity: (i) Executive shall be immediately vested in
his benefit under the EECA and shall have a deemed Commencement Date (as defined in the
EECA) as of the date of termination, (ii) all profit sharing amounts, and all long-term
incentive awards and other qualified and nonqualified benefit plans subject to vesting over
a period of employment, will vest or not vest according to the terms of such plans and
awards as applied in the case of death or permanent total disability, as appropriate, and
(iii) Executive (if he is surviving) and his wife shall be immediately vested and eligible
for Retiree Medical benefits, subject to Section 4(f)(ii) hereof.

     7. Assignment of Discoveries, Inventions and Improvements. Executive agrees to assign
to the Company, its successors, or anyone it designates, all of his rights to any discoveries,
inventions and improvements, whether patentable or not, that are made, conceived or suggested,
either by himself or with others relating to the Business. This includes any discovery, invention
or improvement that occurs with the use of Company time, material or facilities and is related in
any way to the existing or contemplated scope of the Company’s business. If Executive’s employment
with the Company is terminated for any reason, including if he resigns, he is responsible for
honoring this agreement for one year after his departure respecting such discoveries, inventions
and improvements developed by Executive during his

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employment with the Company. This includes, but is not limited to, providing all appropriate
documents used in applying for, obtaining, maintaining, and enforcing foreign or domestic patents
or other intellectual property rights. Expenses (including reasonable professional fees) incurred
for information requested by, and any such assignment to, the Company will be paid for by the
Company.

     8. Access to Confidential Information. Executive understands that confidential
information is developed by the Company through substantial expenditures of time, effort and money,
and it is valuable and unique property. Executive acknowledges that in the course of his
employment with the Company, he will have had and shall continue to become familiar with this
information. To protect the business, he therefore agrees that any confidential information that
he receives during his employment with the Company must be kept confidential both during and after
his employment. Except as Executive deems appropriate to discharge his duties to the Company or
pursuant to a subpoena, Executive will not, directly or indirectly, at any time during or after his
employment with the Company, disclose or use any confidential information that Executive learns of
as a result of his activities on behalf of the Company, no matter when or how the information was
acquired. Subject to the preceding sentence, Executive agrees that this information, no matter
whether written, spoken, or remembered, cannot be disclosed for any unauthorized reason.

Because confidential information is valuable and unique property and because Executive services
have been and shall continue to be of special, unique and extraordinary value to the Company,
Executive agrees that it is necessary for the protection of the Business that Executive not compete
with the Business during Executive’s employment and for a reasonable period of time after his
employment as described in this Agreement.

     9. No Competition and No Solicitation.

          (a) No Competition. During the Employment Period and for a period of twelve
(12) months following Executive’s separation from the Company, for any reason, Executive
agrees not to directly or indirectly:

          (i) enter into or engage in any business activity for any business which competes with
the business, without specific written consent of the Chief Executive officer of the
Company; or

          (ii) promote or assist, financially or otherwise, any person, firm, association,
partnership, corporation or other entity engaged in any business which competes with the
Business.

          (b) No Solicitation. During the Employment Period and for a period of
twenty-four (24) months following Executive’s separation from the Company, for any reason,
Executive agrees not to directly or indirectly:

          (i) solicit vendors, clients, business, patronage or orders for or sale or purchase of
any products and services in competition with the Company’s business;

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          (ii) divert, entice or otherwise take away any vendors, clients, business, or patronage
of the Business or attempt to do so; or

          (iii) solicit for purposes of employment any Company employee, induce any Company
employee to terminate employment for purposes of competing with the Business, interfere with
the relationship between the Company and its employees, or hire, or induce others to hire,
any Company employee, unless such hiring is authorized in writing and in advance, by the
Company.

          (c) Violation. It will be considered a violation of this Section 9 if
Executive engages in any or all of the activities described herein whether as an individual
on his own behalf, or indirectly as a partner, joint venturer, employee, agent, salesperson,
consultant, officer and/or director of any firm, association, partnership, corporation or
other entity, or as a stockholder of any competing corporation in which Executive, his
spouse, child or parent owns, directly or indirectly, individually or in the aggregate, more
than one percent (1%) of the outstanding stock.

          (d) Acknowledgement. Executive agrees that the restrictions set forth in this
Section 9 are in addition to any separate restrictive covenants entered into by him with the
Company as are set forth in Executive’s EECA, Bcom3 Stock Purchase Agreement dated January
31, 2000, and any award or agreement hereafter entered into with the Company, such as a
stock option or other incentive equity award or agreement. Executive further agrees that
the limitations contained in this Section 9 are reasonable with respect to subject matter,
time period and geographical area (it being further acknowledged by Executive that the scope
of the Business is independent of location due to the global nature of his duties and thus
it is impractical to limit the restrictions contained herein to a specific country) and that
the potential harm to Company of the non-enforcement of the restrictions outweighs any harm
to Executive that may be caused by enforcement of such restrictions, by injunction or
otherwise. Executive also acknowledges that but for his employment with the Company, he
would not have come into contact or have associated with the Company’s clients.

     10. Return of Company Property. Upon termination of Executive’s employment with the
Company, for any reason, Executive agrees to return, in good condition, all property belonging to
the Company. This includes, but is not limited to, computers, computer-related hardware, computer
software, key cards, credit cards, cellular phones, PIM cards, personal data assistants (PDAs), fax
machines, the originals and all copies of any materials which contain, reflect, summarize,
describe, analyze, refer or relate to any confidential information or proprietary property of the
Company.

     11. Duty to Disclose. During Executive’s employment and after Executive’s employment
with the Company, he will provide a copy of the provisions of Sections 7, 8, 9, and 12 of this
Agreement to any person, firm, association, partnership, corporation or other entity which intends
to employ, associate with, or represent Executive.

     12. Remedies. Except as to any controversy or claim relating to Sections 7, 8, 9, and
10, all controversy or claim arising out of or relating to this Agreement (or the breach thereof)

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shall be settled by final, binding, and non-appealable arbitration in Chicago, Illinois. The
arbitration shall be conducted in accordance with the rules governing employment disputes of the
American Arbitration Association then in effect. As to Sections 7, 8, 9, and 10, the Company
reserves all remedies which it may have at law or in equity including, without limitation,
injunctive relief. Executive acknowledges that the Company has the right to seek such relief, and
he also agrees that the Company may do so without the necessity of proof of actual damage.

     13. Indemnification. The Company shall indemnify the Executive to the fullest extent
allowed under the charter, by-laws and the applicable corporation law of the state where SMG is
incorporated. The Company shall maintain officers’ and directors’ liability insurance coverage for
the Executive while he is employed by the Company or SMG (or Publicis Groupe Media) or is serving
on any board of directors of SMG (or Publicis Groupe Media) or of any affiliate of the Company, and
at all times thereafter for the duration of any period of limitations during which any action may
be brought against the Executive, in such amount and to the same extent as the Company covers the
Chief Executive Officer of the Company. The Company shall not take any action that would impair
the Executive’s rights to indemnification under the Company’s by-laws, as currently in effect.
Said by-laws are subject to change.

     14. Inconsistency. In the case of any conflict between the terms of this Agreement
and the provisions of any plan, policy or practice of the Company as in effect from time to time,
this Agreement shall control.

     15. Reasonableness of Agreement. Executive acknowledges and agrees that his
obligations under this Agreement are reasonable in the context of the nature of the Business and
the competitive injuries likely to be sustained by the Company if he violates these obligations.
In addition, he acknowledges that this Agreement is made in good, valuable and sufficient
consideration of the Company’s willingness to employ or continue employing Executive.

     16. Modification of Agreement. No modification, waiver, amendment or addition to any
of terms of this Agreement will be effective unless a written agreement is signed by Executive and
the Company. If the Company or the Executive elects not to enforce any provision of this
Agreement, it is not a waiver of the provision or of the right of the Company or the Executive to
enforce each and every provision in the future.

     17. Assignment. This Agreement is not assignable by Executive or the Company without
the prior written consent of the other, except that the Company may assign it to any assignee of or
successor to substantially all of the business or assets of Company, or any of its divisions, its
direct or indirect subsidiaries, or any of its affiliated or related companies.

     18. Tolling. If it is judicially determined that Executive has violated any of his
obligations as described in Section 9 of this Agreement, then the period applicable to each
obligation that has been violated will automatically be extended by a period of time equal in
length to the period during which such violation(s) occurred.

     19. Severability and Survivability. Should any court of competent jurisdiction
determine that any provision of this Agreement is unenforceable, the parties agree that the court
should modify the provision to the minimum extent necessary to render said provision

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enforceable. Should any court of competent jurisdiction determine that any provision of this
Agreement is unenforceable and cannot be modified to be enforceable, that provision shall become
void, leaving the remainder of the Agreement in full force and effect. The provisions of this
Agreement are applicable irrespective of and shall survive any termination of Executive’s
employment, whether by the Company or by Executive, whether voluntary or involuntary, for cause or
without cause, and irrespective of any other termination or expiration of this or any other written
or oral agreement or arrangement with the Company.

     20. Notice. Any notice, designation, consent, offer, acceptance or any other
communication provided for herein shall be given in writing by registered mail with return receipt
requested, or by Federal Express or other reputable express courier which mail or express package
shall be addressed in the case of the Company to the CEO of Publicis Groupe SA at its principal
office in Paris France, with a copy to its General Counsel, and to Executive’s address appearing on
the books of the Company or to such other address as may be designated by Executive. Such notice
shall be considered given upon receipt.

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

     22. Effective Date. This Agreement will become effective as of the date written first
above and will be governed by the internal, substantive laws of the State of Illinois.

     23. Entire Agreement. As of the Effective Date, the Executive agrees that the CIC
Agreement is no longer in effect and he voluntarily waives any and all rights he may have had under
the CIC Agreement in favor of the benefits provided by this Agreement. Executive and Company agree
that, except as specifically provided herein, this Agreement supersedes all previous agreements,
written or oral, between Executive and any person within the Company. Executive acknowledges that
he has had the opportunity to review this Agreement carefully; that he has read this Agreement and
he understands the terms of the Agreement; and that he voluntarily agrees to them.

12

 

     IN WITNESS WHEREOF, the Executive named below, having read and fully understood each of the
provisions of this Agreement, and the Company, have executed this Agreement as of the day and year
first set forth above.

	 	 	 	 	 	 	 
	JACK KLUES	 	PUBLICIS GROUPE S.A.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 /s/ Maurice Lévy
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Maurice Lévy
	 

	 	 	 	 	 	Chairman of the Directoire
	/s/ Jack Klues	 	 	 	 
	 	 	 	 	 
	(Signature)	 	 	 	 
	 
	 	 	 	 	 	 
	STARCOM WORLDWIDE DIVISION OF

LEO BURNETT USA, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	/s/ Frank Voris	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	(Signature)	 	 	 	 
	 
	 	Chief Financial Officer	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	(Title)	 	 	 	 

13EX-4.12:

 

Exhibit 4.12

Linda S. Wolf

Chairman

Chief Executive Officer

December 21, 2004

Mr. Roger Haupt

1934 North Howe Street

Chicago, Illinois 60614

Re: Executive Consulting
Agreement

Dear Roger:

This letter will constitute our agreement with you concerning
your status as an Executive Consultant of Leo Burnett Worldwide,
Inc. (the “Company”). For the five year period
commencing January 1, 2005, and ending December 31,
2009, you will be considered an Executive Consultant and your
employment will be subject to the following terms and conditions:

			
	 	• 	
    Duties and Responsibilities: You agree to serve as an
    executive consultant to the Company providing services when
    required, as the Board may from time to time prescribe. You
    shall commence the performance of such duties at such time as
    the Company, after at least five days’ prior notice in each
    case, directs. You agree to devote your best efforts, energy and
    skill in the performance of your duties to advance the interests
    of the Company.
	 
	 	• 	
    Compensation: For the services rendered by you, the
    Company shall pay you a salary of $427,500 for each of the five
    years of the term of your employment. Salary shall be payable in
    installments at the end of each semi-monthly period.
	 
	 	• 	
    Employee Benefits: During the term of your employment,
    you shall be entitled to participate in such employee plans of
    the Company as are in effect from time to time in accordance
    with provisions of such plans; provided, however, that you shall
    not be entitled to participate in any bonus plan of the Company
    or in long-term disability or supplemental long-term disability
    program of the Company.
	 
	 	 	Upon the expiration of the term, you will be eligible to
    continue your group medical insurance for yourself and your
    covered
dependent(s) as well as any other benefits in
    accordance with the plan summary then effect and currently
    entitled “Medical Insurance Coverage For Burnett Retirees
    2005 Premium Service Schedule.” You understand that the
    premiums, coverages and benefits of your retiree medical
    coverage are (i) subject to change without notice
    (including, without limitation, reducing or eliminating benefits
    and coverages and/or increasing your contribution towards the
    premium); and (ii) subject to the qualification and
    eligibility criteria set forth in the above-referenced plan
    summary.

Leo Burnett Worldwide,
Inc.               35 West
Wacker Drive    Chicago, Illinois
60601    1312.220.5651    1312.220.6536

 

 

Mr. Roger Haupt

Page 2

	 	 	 	 	 
	•	 	Death or Disability: In the
event of your death or permanent disability (as defined in the
Company’s disability plan) during the term of your employment,
the Company will pay to you in the case of disability, or to the
beneficiary or beneficiaries last designated by you in writing to the
Chief Executive Officer of the Company in case of your death or, in
the absence of such designation, to your estate, the payments which
would have been made to you hereunder during the remainder of the
term of your employment. You may delete, add or change beneficiaries
in the manner set forth above at any time.
	 	 	 
	•	 	Covenant Not to Compete:
During the term of your employment, you covenant and agree that you
will not, directly or indirectly, own, manage, operate, control, be
employed by or be connected with the ownership, management, operation
or control of:
	 	 	 
	 	 	°	 	Any advertising agency (or holding
company or subsidiary thereof) other than the Company;
	 	 	 
	 	 	°	 	Any client of the Company or any of
its subsidiaries or affiliates; or
	 	 	 
	 	 	°	 	Any company or other entity selling
products that compete with products of clients of the Company or any
of its subsidiaries or affiliates.
	 	 	 
	 	 	°	 	Unless the Chief Executive Officer
of the Company shall have given you prior written consent upon such
terms as he shall deem appropriate.
	 	 	 
	 	 	°	 	In addition to the foregoing, you
further covenant and agree that, during the term of your employment
you will not, directly or indirectly, for your own benefit or for the
benefit of any other person, firm, or corporation:
	 	 	 
	 	 	°	 	Solicit, for purposes of
employment, either any employee of the Company or its subsidiaries or
affiliates or any employee of any client of the Company or its
subsidiaries or affiliates;
	 	 	 
	 	 	°	 	Induce either any employee of the
Company or its subsidiaries or affiliates or any employee of any
client of the Company or its subsidiaries or affiliates to terminate
such employment for purposes of becoming employed elsewhere;
	 	 	 
	 	 	°	 	Interfere with the relationship
either between the Company or its subsidiaries or affiliates and its
employees or between any client of the Company or its subsidiaries or
affiliates and its employees; or

 

 

Mr. Roger Haupt

Page 3

	 	 	 	 	 
	 	 	•	 	Otherwise hire or induce others to
hire either any employee of the Company or its subsidiaries or
affiliates or of any client of the Company or its subsidiaries or
affiliates unless the Chief Executive Officer of the Company shall
have given prior written consent upon such terms as he shall deem
appropriate.
	 	 	 
	 	 	•	 	The restrictions set forth in this
section are in addition to any separate restrictive covenants
contained in the Bcom3 Stock Purchase Agreement or your Consulting
Services Agreement with Publicis Groupe SA.
	 	 	 
	 	 	•	 	It is expressly understood and
agreed that the Company’s remedies for breach of any of these
covenants shall not be limited to damages in the amount of salary to
be paid to you hereunder.
	 	 	 
	•	 	Termination by
Company: The Company may terminate this Agreement:
	 	 	 
	 	 	•	 	Upon a material breach of any
provision hereof by you which shall not be remedied within ten days
after notice; or
	 	 	 
	 	 	•	 	For cause relating to substantial
matters which might have a serious, material adverse impact on the
Company, which shall not be remedied within ten days after notice; or
	 	 	 
	 	 	•	 	For cause relating to substantial
matters which have had a serious, material adverse impact on the
Company; or
	 	 	 
	 	 	•	 	For cause relating to your conduct
which, in the judgment of the Company, discredits the Company or its
clients or is detrimental to the reputation, character, or standing
of the Company or its clients.

* * *

This letter supersedes all
prior agreements or understandings as to your employment by Leo
Burnett, it being understood and agreed that this letter contains our
entire understanding with respect to its subject matter.

The parties agree that no
waiver or modification of this agreement or of any covenant condition
or limitation herein contained shall be valid unless in writing
executed by both parties. Furthermore, no evidence of any waiver or
modification shall be offered or received in evidence in any
proceeding, arbitration, or litigation between the parties arising
out of or affecting this agreement or the rights or obligations of
any party hereunder, unless such waiver or modification is in
writing and executed by both parties. The provisions of this
paragraph may not be waived except as herein set forth.

 

 

Mr. Roger Haupt

Page 4

Additionally, this Agreement
is binding upon the successors and assigns of the Company. Should the
Company cease doing business and if there is no successor or assign,
any remaining payments due under this Agreement will be due and
payable to you immediately.

Please execute the original
of this letter and return it to me, upon which it will be binding and
effective on the Company and you.

Sincerely,

LEO BURNETT WORLDWIDE, INC.

/s/ Linda Wolf

Linda Wolf

Agreed and Accepted:

/s/ Roger Haupt

Roger Haupt

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