Document:

AGREEMENT DATED NOVEMBER 30, 2000

 

EXHIBIT 4.7

AGREEMENT dated 30 November 2000

PARTIES

SAATCHI & SAATCHI NORTH AMERICA, INC. (“SSNA”) a company incorporated in
Delaware, United States of America, which carries on business as an advertising
agency.

SAATCHI & SAATCHI LIMITED (“SSNZ”) a company incorporated in New Zealand, which
carries on business as an advertising agency.

RED ROSE LIMITED
(“Red Rose”) a company incorporated in New Zealand, which
carries on the business of management consultancy.

INTRODUCTION

	A.	 	SSNA has entered into an employment contract (the “SSNA Contract”) with
Mr. Kevin Roberts with effect from September 7, 2000 whereby Mr. Roberts
will provide personal services to SSNA on an exclusive basis while he is
in the United States, as Chief Executive Officer of SSNA’s affiliate
Saatchi & Saatchi Advertising Worldwide, Inc. (“SSWW”). Pursuant to this
agreement Mr. Roberts will be required to be present in the United States
and provide personal services to SSNA, on a full time basis, up to 25
weeks inclusive of holidays in any 12 month period.
	 
	B.	 	SSNA is aware that Red Rose has entered into an employment contract with
Mr. Kevin Roberts with effect from 16 August 1998 whereby Mr. Roberts will
provide personal services to Red Rose on an exclusive basis while he is
not in the United States. Pursuant to this agreement Mr. Roberts is
required to be outside the United States providing personal services to
Red Rose, on a full time basis, for not less than 27 weeks in any 12 month
period.
	 
	C.	 	SSNA recognises that, due to Red Rose’s employment contract with Mr.
Kevin Roberts, Red Rose will be able to provide valuable consulting
services to SSNA’s non United States affiliates named in Schedule 1 of
this agreement (being entities which are registered and which carry on
business outside the United States (“SSNA’s non US Affiliates”)).
	 
	D.	 	SSNA has requested the Executive to enter into personal covenants with
Publicis to restrain him from certain activities and dealings with respect
to certain clients of Publicis, SSNA or their affiliates and to restrain
him from certain actions with respect to employees of Publicis, SSNA or
their affiliates for a period of twenty four (24) months after the expiry
of the contract or any renewal thereof.
	 
	E.	 	Red Rose has agreed to provide certain consulting services, details of
which are contained in Schedule 2 of this agreement (“Consultancy
Services”), to SSNA’s non US Affiliates on the terms and conditions
contained in this agreement.
	 
	F.	 	This agreement is intended to be effective from September 7, 2000.

 

 

AGREEMENT

	1.	 	Consultancy Services
	 
	1.1	 	Red Rose shall provide Consultancy Services to SSNA’S non US Affiliates
on the following terms:
	 
	(a)	 	Kevin Roberts is the only employee of Red Rose who is to provide
Consultancy Services such Consultancy Services to be provided directly to
SSNA’s non US Affiliates from September 7, 2000 for not less than 27 weeks
in any 12 month period (or pro-rata for shorter periods). Subject to this
agreement, Red Rose will procure Mr. Kevin Roberts to continue in its
employ during the term of this agreement;
	 
	(b)	 	Red Rose shall ensure that at all times during which Mr. Kevin Roberts is
an employee of Red Rose, Mr. Kevin Roberts shall devote his best efforts,
attention and full time to the business and affairs of SSNA’s non US
Affiliates and shall perform such duties and responsibilities which are
consistent with his seat on SSNA’s ultimate parent’s (“Parent’s”)
Directoire and employment as Chief Executive of SSWW (pursuant to his
employment with SSNA);
	 
	(c)	 	Red Rose and Mr. Kevin Roberts (in his capacity as an employee of Red
Rose) shall at all times competently and faithfully render their services
to SSNA’s non US Affiliates;
	 
	(d)	 	Red Rose and Mr. Kevin Roberts (in his capacity as an employee of Red
Rose) shall not under any circumstances provide Consultancy Services to
SSNA or SSWW in respect of their United States businesses.
	 
	2.	 	Remuneration
	 
	2.1	 	In consideration for Red Rose providing Consultancy Services to SSNA’s
non US Affiliates under this agreement:
	 
	(a)	 	SSNZ shall pay Red Rose US$180,000 per annum plus GST to be paid pro rata
on a monthly basis, on the first day of each month following the month to
which the payment relates;
	 
	(b)	 	SSNA shall pay US$288,000 per annum, to be paid pro rata on a monthly
basis, on the first day of each month following the month to which the
payment relates;
	 
	(c)	 	SSNZ shall provide to Red Rose in Auckland, at its expense, an office
including all office equipment, telephone, fax, postage and full time
secretarial support;
	 
	(d)	 	SSNZ shall provide at its expense to Mr. Kevin Roberts directly, and for
his personal use, a Jaguar XK8 (or equivalent model) motor vehicle which
shall be fully equipped (including car phone) together with parking;

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	(e)	 	SSNA or SSNZ (as applicable) shall, subject to the receipt of appropriate
invoices, reimburse any travel, entertainment and normally reimbursable
expenses incurred by Red Rose for consultancy services performed on SSNA’s
or SSNZ’s behalf.
	 
	2.2	 	Amounts payable to Red Rose under clause 2.1 of this agreement shall be
reviewed on September 7, 2001 and then annually on that date or at any
other times as agreed by the parties but not downwards.
	 
	2.3	 	Red Rose shall have the opportunity to derive an annual performance bonus
consistent with the terms of SSNA’s or SSNZ’s (or the Parent’s) bonus
scheme from time to time in force under which Red Rose shall be entitled
to 100% of the amounts calculated under clauses 2.1(a) and 2.1(b) above
(plus any applicable GST) (as amended from time to time) for on target
performance and shall be entitled to such percentage exceeding 100% of the
amounts calculated under clauses 2.1(a) and 2.1(b) above (plus any
applicable GST) (as amended from time to time) as agreed between SSNA and
SSNZ (or the Parent) and Red Rose for over target performance. However,
for the period of 1 January 2000 to 8 September 2000 the bonus shall be
70% calculated on a pro rata basis for the days in this period as compared
with days in the calendar year and for the period 9 September 2000 to 31
December 2000 the bonus shall be 100% calculated on a pro rata basis for
the days in this period as compared with days in the calendar year.
	 
	3.	 	Term
	 
	3.1	 	This agreement (excluding clauses 5 and 6 which shall each operate for
the length of time noted therein) shall operate only while Mr. Kevin
Roberts is employed by SSNA or one or more of SSNA’s non US Affiliates and
shall terminate immediately on termination of the SSNA Contract.
	 
	3.2	 	If Red Rose materially breaches this agreement (including by it or Mr.
Kevin Roberts (as appropriate) committing any of the acts referred to in
clause Second B(a) to (e) of the SSNA Contract) and such breach, if
curable, is not cured within 30 days of Red Rose receiving written notice
of such breach from SSNA then SSNA may terminate this agreement by giving
one month’s written notice to Red Rose.
	 
	3.3	 	In the event that the SSNA Contract is terminated, pursuant to the terms
of such contract or contracts, then, unless the parties agree otherwise,
this agreement (excluding clauses 5 and 6) shall be deemed to terminate at
the same time as the first such termination and for the same reason and as
if such terms in that agreement had been set out in full in this
agreement, with any necessary modifications.
	 
	3.4	 	In the event that the SSNA Contract is terminated by either SSNA or Mr.
Kevin Roberts pursuant to paragraph Second C.1 of that contract by reason
of a Change in Control (as provided for in that contract) this agreement
shall automatically terminate in accordance with clause 3.3 and Red Rose
shall receive from SSNA and SSNZ in aggregate:
	 
	(a)	 	12 months of payments as provided for in clauses 2.1(a) and 2.1(b) (as
amended from time to time);

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	(b)	 	any bonus(es) due to Red Rose under clause 2.3 above to the date of the
end of the term of the agreement;
	 
	(c)	 	an amount equal to the Bonus that Red Rose would have received had this
agreement not been terminated for another 12 months and on the basis that
Red Rose would have achieved a target Bonus of 100% of the amount payable
under clauses 2.1(a) and 2.1(b) above (as amended from time to time); and
	 
	(d)	 	a cash amount equivalent to the cost to SSNZ of providing the benefit in
Clause 2.1(d) to Mr. Kevin Roberts for a further 12 months (as if this
agreement was still in operation during that time) (plus any applicable
GST).
	 
	3.5	 	In the event that Mr. Kevin Roberts terminates the SSNA Contract for Good
Reason (as defined in that contract) or if SSNA terminates Mr. Kevin
Roberts’ employment pursuant to the SSNA Contract for any reason other
than Cause (as defined in that contract), and except where such
termination is effected (a) by reason of the death of Mr. Kevin Roberts;
(b) by reason of Mr. Kevin Roberts’ disability lasting a period of 180
consecutive days; (c) pursuant to paragraph Second C.1 of that contract;
or by service of notice of termination on Mr. Kevin Roberts in accordance
with paragraph Second A of that contract, Red Rose shall receive from SSNA
and SSNZ in aggregate all unpaid amounts payable under clause 2.3 above
for the year of termination and any prior period plus a sum equal to the
bonuses which Red Rose would have received in accordance with clause 2.3
above had this agreement continued for an additional year following its
termination on the basis that Red Rose’s target bonus (as at the date of
this agreement terminates) is achieved in respect of such additional
year’s service plus a sum equal to 100% of payments provided for in
clauses 2.1(a) and 2.1(b) (as amended from time to time), two thirds
(2/3)
of the aggregate of such sums shall be payable in a lump sum within ten
(10) days after the termination of this agreement and one-third (1/3) of
which shall be payable in installments over a period of six (6) months,
commencing on termination of this agreement in accordance with SSNA’s
normal payment practices (such installment amounts hereinafter referred to
as “Installment Payments”), provided, however, that (i) if Mr. Kevin
Roberts materially breaches any of the covenants contained in paragraph
Fifth of the SSNA contract, and does not cure such breach within ten (10)
days after written notice from SSNA specifically identifying such breach,
then SSNA and SSNZ may defer any Installment Payment to be made after such
breach provided, and only so long as SSNA is actively prosecuting an
action against Mr. Kevin Roberts in a court of competent jurisdiction (as
provided in paragraph Tenth of the SSNA Contract) to enforce the
provisions of paragraph Fifth of the SSNA Contract (as appropriate), as
the case may be, and (x) if a court of competent jurisdiction ultimately
determines that such breach occurred, then Red Rose shall forfeit all
rights to such Installment Payments and (y) otherwise, Red Rose shall be
entitled to all such amounts, together with interest at the New York
statutory judgment rate from the date of deferral, with ten (10) days
after such court’s decision or abandonment or withdrawal of SSNA’s action;
and (ii) SSNA and SSNZ shall have the right to offset, on a
dollar-for-dollar basis the amount of value of any income or remuneration
whether in cash or in kind which is paid to Red Rose and/or Mr. Kevin
Roberts for any employment or engagement during or in respect of the
period that liquidated damages are payable hereunder against Installment
Payments payable un-

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	 	 	der this Agreement. Red Rose shall procure that Mr. Kevin Roberts shall
use his best endeavors to seek any employment or engagement after the
termination of this agreement and during the period that Installment
Payments are payable hereunder. Upon request, Red Rose shall procure
that Mr. Kevin Roberts shall provide to the SSNA or SSNZ a list of all
employment and engagement secured by Mr. Kevin Roberts during the period
that Installment Payments are payable hereunder. Payments made by any
party pursuant to this paragraph 3.5 shall be made subject to payment of
applicable GST (if any).
	 
	3.6	 	The provisions of clauses 3.4, and 3.5 shall be in lieu of, and shall
supersede, the provisions of any severance pay or liquidated damages plan
or policy maintained by SSNA or SSNZ and/or any of its or their
subsidiaries or any obligation on either of them to give notice of
termination of this agreement to Red Rose, and Red Rose shall not, on
termination of this agreement be entitled to payment pursuant to any such
plan or policy or in lieu of any such period of notice of termination.
	 
	4.	 	Exclusion of Implied Relationship
	 
	4.1	 	Nothing contained in this agreement shall be deemed or construed to
constitute:
	 
	(a)	 	any party as a partner, joint venturer, agent or representative of any of
the other parties;
	 
	(b)	 	Mr. Kevin Roberts an employee of SSNA, SSWW or any of SSNA’s non US
Affiliates;
	 
	(c)	 	the authority for Red Rose or Mr. Kevin Roberts to enter into contracts
on behalf of SSNA, SSWW or any of SSNA’s non US Affiliates. For the
avoidance of doubt neither Red Rose nor Mr. Kevin Roberts (in his capacity
as an employee of Red Rose) may enter into contracts on behalf of SSNA,
SSWW or any of SSNA’s non US Affiliates.
	 
	5.	 	Confidentiality
	 
	5.1	 	Red Rose agrees that, during the term of this agreement and thereafter,
it will ensure that neither it nor any of its employees will:
	 
	(a)	 	divulge to anyone (other than SSNA or any of SSNA’s non US Affiliates)
any knowledge or information of any type whatsoever of a confidential
nature relating to the business of SSNA or any of SSNA’s non US
Affiliates;
	 
	(b)	 	disclose, publish or make use of any such knowledge or information of a
confidential nature (referred to in clause 5.1) without the prior written
consent of SSNA or one of SSNA’s non US Affiliates.
	 
	6.	 	Restraint
	 
	6.1	 	The Executive agrees to provide his personal deeds of covenant to
Publicis, and Publicis agrees to pay the Executive to provide his personal
deeds of covenant to Publicis restraining him, during the term of this
agreement and for a period of three years following its termination from:

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	(a)	 	attempting in any manner to persuade any client of the Parent, SSNA, SSWW
or any of SSNA’s non US Affiliates (“Client”), which was a Client during
the term of this agreement (as set out in clause 3) with whom Red Rose
Limited or Mr. Kevin Roberts shall have had dealings to cease to do
business or to reduce the amount of business which such client has
customarily done or contemplated doing with the Parent, SSNA, and any
other SSNA non US Affiliate, whether or not the Client was originally
gained through the efforts of Red Rose or its employees;
	 
	(b)	 	rendering any advertising, marketing or merchandising services for:

	 	(i)	 	Kimberley-Clark or Unilever;
	 
	 	(ii)	 	any Client for whom Red Rose, or any or its employees,
rendered services or supervised the rendering of such services at
any time during the 12 months immediately preceding the termination
of this agreement (as set out in clause 3);

	(c)	 	without approval employing or attempting to employ or causing others to
employ any person who is then or at any time during the preceding year was
employed by SSNA, or any of SSNA’s non US Affiliates in a senior capacity.
	 
	6.2	 	To the extent that any of clause 6.1 is held to be unenforceable because
of the duration of that provision or the area covered by it or for any
other over inclusiveness, the parties agree that the duration of that
provision or the area covered or such other over inclusiveness shall be
automatically reduced to the maximum scope permitted by law and that, in
its reduced form, clause 6.1 will be fully enforceable.
	 
	6.3	 	Since SSNA and any of SSNA’s non US Affiliates may be irreparably damaged
if the provisions of this clause are not specifically enforced, in the
event of a breach or threatened breach of this clause by Red Rose or the
Executive, SSNA or any of SSNA’s non US Affiliates shall be entitled to
injunctive relief without showing that monetary damages will not provide
an adequate remedy.
	 
	7.	 	Taxes
	 
	7.1	 	Red Rose shall be responsible for all taxes in respect of all fees paid
to it by SSNA and SSNZ under this agreement. This agreement shall cancel
any prior agreement, arrangement, or understanding with respect to
taxation in respect of this agreement or any prior agreement.
	 
	8.	 	General
	 
	8.1	 	The failure of either party to enforce any of the provisions of this
agreement shall not be deemed a waiver thereof. No provisions of this
agreement shall be deemed to have been waived or modified unless such
waiver or modification is in writing and signed by the parties.
	 
	8.2	 	This agreement shall constitute the entire agreement between the parties
and shall be binding upon the parties, their successors and assigns.

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	8.3	 	This agreement shall be deemed made under and shall be governed by the
substantive laws of the State of New York, United States of America,
excluding its conflict of laws rules.
	 
	8.4	 	Any notice given concerning this agreement shall be in writing and shall
be delivered to the other party by registered mail, reputable courier or
personally at the address detailed below (unless otherwise advised);

	 	 	 	 	 	 	 
	

	 	(a)
	 	For SSNA:
	 	Saatchi & Saatchi Advertising
Worldwide, Inc.

375 Hudson Street

New York, NY 10014

Attention: Chief Financial Officer
	 
	 	 	 	 	 	 
	

	 	(b)
	 	For SSNZ:
	 	Saatchi & Saatchi Limited

Saatchi & Saatchi House

101-103 Courtney Place

Wellington

New Zealand

Attention: Neville Goldie, Director
	 
	 	 	 	 	 	 
	

	 	(c)
	 	For Red Rose:
	 	Red Rose Limited

2nd floor

125 The Strand

Parnell

Auckland

New Zealand
	 
	 	 	 	 	 	 
	

	 	(d)
	 	For Publicis Groupe SA:
	 	Publicis Groupe SA

133 avenue des Champs Elysées

75008 Paris

France

	 	 	 
	SIGNED on behalf of SAATCHI &
	 	 
	SAATCHI NORTH AMERICA, INC. by:-

	 	/s/ William H. Cochrane
	 
	 	 
	SIGNED on behalf of SAATCHI &
	 	 
	SAATCHI LIMITED by:-

	 	/s/ Neville Goldie

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	SIGNED on behalf of RED ROSE
	 	 
	LIMITED by:-

	 	/s/ Kevin Roberts

8EMPLOYMENT AGREEMETN

 

EXHIBIT 4.8

EMPLOYMENT AGREEMENT

dated September 8, 2002

between

SAATCHI & SAATCHI NORTH AMERICA INC.

And

ROBERT L. SEELERT

 

 

EMPLOYMENT AGREEMENT

     Employment Agreement dated as of September 8, 2002 between SAATCHI &
SAATCHI NORTH AMERICA, INC., a corporation organized and existing under the
laws of the State of Delaware, having its principal place of business at 375
Hudson Street, New York, New York 10014 (the
“Company”) and ROBERT L. SEELERT,
residing at 51 West Road, New Canaan, Connecticut 06840 (the
“Executive”)

R E C I T A L S

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

     1. Employment

     The Company employs the Executive, and the Executive accepts such
employment, upon the terms and conditions hereinafter set forth.

     2. Term of Employment

     Except as provided in the last sentence of this Section 2, the Executive’s
employment with the Company pursuant to this Agreement shall begin as of 8
September 2002 (the “Commencement Date”) for an initial fixed period of five
years, and thereafter unless and until terminated by either party serving on
the other not less than 30 days’ notice in writing such notice to be effective,
as specified therein, at any time on or after the fifth anniversary of the
Commencement Date. The period from the Commencement Date to the date the
Executive’s employment under this Agreement terminates shall constitute the
“Term of Employment”. The Term of Employment shall end upon the Executive’s
death.

     3. Duties

     3.1 During the Term of Employment, the Executive shall serve as Chairman
of the Company. The Executive’s principal place of employment shall be at the
Company’s New York City offices (subject to the travel requirements of the
position of Chairman of the Company).

     3.2 The Executive shall devote his best efforts and shall devote up to 60
days each calendar year to the business and affairs of the Company, and shall
perform such duties and responsibilities as are customary for an executive in
his position.

     3.3 Notwithstanding the provisions of paragraphs 3.1 and 3.2, at any time
after September 8, 2004 either party may elect, by serving on the other not
less than 30 days’ notice in writing, such notice to be effective as specified
therein at any time on or after such 30-day period, to terminate the
Executive’s services as Chairman of the Company, in which event the Executive
shall resign his position as Chairman and shall thereafter serve as Chairman
Emeritus of the Company for the balance of the Term of Employment (such period
is referred to herein as the “Emeritus Period”). During the Emeritus Period,
the Executive shall devote such time, and

 

 

shall perform such duties and responsibilities, as the Executive and the
Company shall mutually agree from time to time.

     4. Compensation

     During the Term of Employment, the Company shall pay and/or provide to
Executive, and the Executive shall accept, for his services to the Company, the
following compensation and benefits:

     4.1 Salary

     A
base salary (the “Salary”) at the annual rate of at least $300,000 per
year, payable in accordance with the Company’s standard payroll practices in
effect at such time as said Salary is paid, but not less often than monthly,
provided, that the Salary shall decrease to the annual rate of $25,000 per year
effective upon the commencement of the Emeritus Period.

     4.2 Other Benefit Plans and Fringe Benefits

     The Executive shall be eligible to participate or to continue to
participate in all employee benefit plans (other than any bonus plan) which the
Company or its affiliates maintain for its employees, and those which it shall
make available to its senior executive officers generally, according to the
terms of said plans; provided, that the Executive shall not be entitled to
become a member of any new share-based incentive plan which Publicis Groupe
S.A. (the “Parent”) shall establish or make available to employees or
executives of the Company or its affiliates following the Commencement Date;
and provided, further, that this exclusion shall not affect the options to
acquire shares in the Parent currently held by the Executive. The Executive
shall be entitled to all fringe benefits (other than any bonus plan or the
share-based incentive plan of the Parent referred to above) for which his
status and level of employment qualify him in accordance with the usual
policies and arrangements of the Company, or in accordance with the policies
and arrangements of any other United States subsidiary of the Company or the
Parent to the extent that the level of the Executive’s benefits thereunder
would exceed those provided under the policies and arrangements of the Company.

     4.3 Retirement Benefits

     The
Company shall continue to maintain a reserve account (the
“Account”)
on its books on behalf of the Executive. On the last day of each fiscal
quarter commencing with the Commencement Date (if the last day of a fiscal
quarter) or with the fiscal quarter next following the Commencement Date, and
continuing until the commencement of the Emeritus Period, the Account shall be
credited with an amount equal to a percentage of the Executive’s then-current
Salary as follows: for the fiscal quarter in which the Commencement Date occurs
and for each fiscal quarter thereafter, 6.25% of the Executive’s then-current
Salary.

     The balance of the Account shall be credited each quarter with compound
interest at the rate of 8% per year. The Company shall deliver to the Executive
a statement, at least once each year, setting forth the balance of the Account
as of the preceding December 31. Upon the termination of the Term of
Employment, the balance of the Account shall be calculated (as of the last day
of the month in which such termination occurs) and such amount shall be paid to
the

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Executive in a lump sum as soon as practicable, but in any event within 30
days of the date of such calculation.

     4.4 Perquisites

     The Executive shall be provided with an automobile suitable to his
position with the Company and with one club membership.

     4.5 Expenses

     The Company shall pay or reimburse the Executive for all reasonable
travelling, hotel and other out-of-pocket expenses incurred by the Executive in
the performance of his services under this Agreement, provided, that the
Executive’s claims therefor are supported by the documentation required by the
Company in accordance with its usual practice. Without limitation, such
expenses shall include limousine transportation to and from work, first class
or business class air travel at the choice of the Executive, and spousal travel
to Conseil de Surveillance meetings of the Conseil de Surveillance of the
Parent.

     5. Continuation of Benefits; No Additional Severance

     5.1 Continuation of Benefits

     If the Company terminates the Executive’s employment for any reason, or if
the Term of Employment ends upon the Executive’s death, the Company shall
continue to provide the Executive (and his eligible dependents, if any) with
group health and (until the Executive’s death) life insurance benefits (or the
economic equivalent thereof) and the benefits referred to in paragraph 4.2 and
paragraph 4.3 (including, if applicable, the portion of the premium paid by the
Company for such coverage) in effect on the date of termination for the period
from the end of the Term of Employment until the later to occur of the
Executive’s and his spouse’s 65th birthday. Thereafter, the Executive (and his
spouse if the Executive pre-deceases her) shall have the right to participate
in all retiree medical plans made available by the Company to any retired
employee, regardless of whether the Executive’s term of service would render
him eligible for participation.

     5.2 No Additional Severance

     The provisions of this Agreement, together with the provisions of the
employment agreement among the Parent, the Company and the Executive effective
8 September 2000, shall be in lieu of, and shall supersede, the provisions of
any severance pay plan or policy maintained by the Company, the Parent and/or
any of its subsidiaries, and the Executive shall not, on termination of his
employment with the Company, be entitled to payment pursuant to any such plan
or policy.

     6. Covenant not to Compete, Confidentiality and Intellectual Property

     The Executive acknowledges that as a result of the services to be rendered
to the Company hereunder, the Executive will be brought into contact with many
confidential affairs of the Company and the Parent that are not readily
available to the public. The Executive further

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acknowledges that the services to be performed under this Agreement are of
a special, unique, unusual, extraordinary and intellectual character; that the
business of the Company and the Parent and/or its or their subsidiaries is
international in scope; that their services are marketed and performed
throughout the United States and other parts of the world; and that the Company
and the Parent and/or its or their subsidiaries compete with other
organizations that are or could be located in any part of the are world.

     6.1 Covenant not to Compete

     The Executive acknowledges that the services he will render to the Company
are of a special and unique character, any loss of which cannot adequately be
compensated by damages or an action at law. Therefore, (i) in view of the
unique value to the Company and the Parent of the services of the Executive for
which the Company has contracted hereunder, (ii) in view of the confidential
information obtained by, or disclosed to, the Executive as a consequence of his
employment or the retention of his services by the Company, (iii) as a material
inducement to the Company to enter into this Agreement and to pay the Executive
the compensation and additional benefits stated herein, and (iv) for other good
and valuable consideration, the Executive covenants and agrees that, while he
is in the Company’s employ, and for a period of 12 months thereafter, the
Executive will not, either directly or indirectly:

     6.1.1 attempt in any manner, or take any other action intended, to
persuade any client of the Company and the Parent or any of its or their
subsidiaries or affiliates to cease to do business or to reduce the amount of
business which any such client has customarily done or contemplates doing with
the Company and the Parent or any of its or their subsidiaries or affiliates,
whether or not the relationship between the Company and the Parent or its or
their subsidiaries or affiliates and such client was originally established in
whole or in part through the Executive’s efforts;

     6.1.2 employ or attempt to employ or assist or cause others to employ any
person who is then, and at any time during the year preceding the last day of
the Term of Employment was, an employee of the Company, the Parent or any of
its or their subsidiaries or affiliates, or take any other action intended to
have the effect of causing any such person to terminate his or her employment
or agency relationship with the Company or the Parent or any of its or their
subsidiaries or affiliates; provided, however, that the preceding limitations
shall not apply to any employee whose annual salary or compensation from the
Company or the Parent or its or their subsidiaries and affiliates was $70,000
or less in such preceding year, and such limitation may be waived by the
Company or the Parent; or

     6.1.3 render any advertising, marketing or merchandising services, other
than on behalf of the Company or the Parent or any of its or their subsidiaries
or affiliates, for or in connection with any client of the Company or the
Parent or any of its or their subsidiaries or affiliates. This paragraph 6.1.3
shall include the rendering of any advertising, marketing or merchandising
services by the Executive whether in association with or as a director,
officer, employee, trustee, consultant, advisor, independent contractor,
partner, co-venturer or investor (excluding any interest of the Executive
through investment of up to an aggregate of two percent (2%) in the equity or
debt securities or equivalent partnership interest of any person, except the
Company or the Parent, required to register under Section 12(b) or 12(g) of the
Securities

4

 

Exchange Act of 1934) to or on behalf of any entity, or any affiliate or
subsidiary of such entity, conducting any business that competes with that of
the Company or the Parent or any of its or their subsidiaries or affiliates.

     As
used herein, the term “affiliate” shall mean, with respect to the
Parent or the Company, any entity with which the Parent or the Company or any
of its or their wholly-owned subsidiaries has a network membership agreement.

     This paragraph 6.1 shall not be deemed to preclude the Executive from
functioning as a director, senior executive officer, employee, trustee,
consultant, advisor, independent contractor, partner, co-venturer or Investor
to or on behalf of any entity that is not engaged principally in providing
advertising, marketing or public relations services for third parties, other
than any of the top 15 clients, based on revenues, of the Company or the Parent
(including its or their subsidiaries and affiliates) on the last day of the
Term of Employment, and any action taken by such entity shall not be deemed to
be a breach of this paragraph 6.1, provided that the Executive does not
participate in any decision to cease or reduce business as contemplated by
subparagraph 6.1.1.

     The Executive acknowledges that since the business of the Company and the
Parent together with its or their subsidiaries is International in scope and is
of a type that can be engaged in virtually anywhere, no meaningful geographic
limitation can be applied to the agreements made by the Executive in this
paragraph 6.1. Consequently, the Executive specifically intends for such
agreements to be enforceable against him world-wide and agrees that such
restrictions are reasonable as such.

     6.2 Confidentiality

     In consideration of the foregoing, the Executive agrees that he will not
divulge to anyone (other than the Company, the Parent and its or their
subsidiaries and affiliates or any persons employed or designated by the
Company and the Parent or as required to enable the Executive to perform his
duties hereunder) any confidential information concerning or relating to the
business or affairs of the Company, the Parent or its or their subsidiaries or
affiliates or any of their clients, including, without limitation, (1) all
types of trade secrets of the Company, the Parent or its or their subsidiaries
or affiliates, (2) business of the Company, the Parent or its or their
subsidiaries or affiliates and (3) methods of doing business that are
proprietary to the Company, the Parent or its or their subsidiaries or
affiliates, provided that, these restrictions shall not apply to materials,
documents, records or other information which have been made publicly available
prior to its disclosure by the Executive. The provisions of this paragraph 6.2
shall apply both during the Term of Employment and thereafter.

     6.3 Intellectual Property

     In further consideration of the foregoing, during the Term of Employment,
the Executive shall disclose to the Company and/or the Parent all ideas,
inventions and business plans developed by the Executive during such period
which relate directly or indirectly to the business of the Company, the Parent
or its or their subsidiaries or affiliates, including without limitation, any
process, operation, product or improvement which may be patentable or

5

 

copyrightable. The Executive agrees that any of the foregoing will be the
property of the Company and/or the Parent and that he will, at the Company’s
and/or the Parent’s request and cost, do whatever is necessary to secure the
rights thereto by patent, copyright or otherwise to the Company and/or the
Parent.

     6.4 Return of Documents and Property

     The Executive shall upon termination of the Term of Employment immediately
deliver up to or at the direction of the Company all price lists, customer
lists, correspondence and other documents, papers, computer discs and other
such records and all property belonging to the Company, the Parent or any of
its or their subsidiaries or affiliates which may have been prepared by him or
have come into his possession in the course of his employment by the Company,
and the Executive shall not retain any copies thereof.

     6.5 Full and Continuing Enforceability

     The parties consider the restrictions contained in this paragraph 6 to be
fair and reasonable, and it is the desire and intent of the parties that the
provisions of this paragraph 6 shall be enforced to the fullest extent
permissible under the laws and public policies applied in each jurisdiction in
which enforcement is sought. If any of the covenants contained in this
paragraph 6, or any part thereof, are held to be unenforceable because of the
duration of such provision, the area covered thereby, or for any other
over-inclusiveness, the parties agree that the duration of such provision or
the area covered thereby or such other over-inclusiveness shall be
automatically reduced to the maximum scope permitted by law, and that, in its
reduced form, said provision shall then be fully enforceable, provided that,
such reduction shall only apply with respect to the operation of this paragraph
6 in the particular jurisdiction in which such adjudication is made, and,
provided further, that, if no such reduction is possible, such provision shall
be omitted from this Agreement. Notwithstanding that the Executive’s
employment by the Company may expire or be terminated, this Agreement shall
continue in full force and effect insofar as is necessary to enforce the
covenants and agreements of the Executive contained in this paragraph 6.

     6.6 Equitable Remedies

     The parties acknowledge and stipulate that, since the Company may be
irreparably damaged if any of the provisions of this paragraph 6 are not
specifically enforced, in the event of a breach or threatened breach of any
such provisions by the Executive, monetary damages shall be an inadequate
remedy therefor; accordingly, in addition to any legal relief that may be
available to it, the Company shall be entitled to equitable remedies,
including, without limitation, the remedies of specific performance and
injunctive relief, with respect to the enforcement of such provisions, without
a showing that monetary damages will not provide an adequate remedy and without
being required to post a bond.

     7. Insurance

     The Company and Parent agree to use their respective best efforts to
obtain a directors and offers liability insurance policy covering the Executive
in respect of his membership of the Board and of the Conseil de Surveillance of
the Parent, and to maintain such policy during

6

 

the Term of Employment (and for so long thereafter as is practicable in
the circumstances taking into account the availability of such insurance).

     8. Waiver

     The failure of any party to this Agreement to enforce or insist upon
strict compliance with any of the provisions of this Agreement shall not be
deemed a waiver thereof. No provision of this Agreement shall be deemed to have
been waived or modified unless such waiver or modification shall be in writing,
designated as a waiver, and signed by all parties hereto. Any waiver or
relinquishment of any right or power hereunder at any one or more times shall
not be deemed a waiver or relinquishment of such right or power at any other
time or times.

     9. Assignment

     This Agreement is a personal contract, and except as specifically set
forth herein, the rights and interests of the Executive herein may not be sold,
transferred, assigned, pledged or hypothecated, and any purported sale,
transfer, assignment, pledge or hypothecation in violation hereof shall not be
valid or binding on the Company, and in the event of any such purported sale,
transfer, assignment, pledge or hypothecation, the Company shall have no
further liability for payments hereunder. This Agreement shall be assignable
by the Company only to any corporation or other entity resulting from the
reorganization, merger or consolidation of the Company with any other
corporation or entity or any corporation or entity to or with which the
Company’s business or substantially all of its business or assets may be sold,
exchanged or transferred, and it must be so assigned by the Company to, and
accepted upon it as binding by, such other corporation or entity in connection
with any such reorganization, merger, consolidation, sale, exchange or transfer
(the provisions of this sentence also being la applicable to any successive
such transaction). This Agreement shall inure to the benefit of and be binding
upon the parties hereto, their heirs, executors, administrators, successors and
assigns, including any successor to the Company by merger or consolidation or a
statutory receiver or any other person or firm or corporation to which all or
substantially all of the respective assets and business of the Company may be
sold or otherwise transferred.

     10. Notices

     10.1 Any notice to be given concerning this Agreement shall be given in
writing and sent by reputable overnight courier service and either:

     10.1.1 sent by certified or registered mail, return receipt requested,
postage prepaid;

     10.1.2 hand delivered to the recipient personally; or

     10.1.3 sent by facsimile.

     The date of the giving of any notice shall be deemed to be the day after
said notice was given to the reputable courier service as indicated by the
records of such courier service. Hand delivery of any notice to the Company
shall be delivered to the Company’s Chairman, Chief Financial Officer or
Secretary personally or to an administrative assistant for any such person.

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     10.2 Notice by mail or courier service shall be sent as follows:

if to the Executive:

51 West Road

New Canaan, Connecticut 06840

with a copy to:

Kaye Scholer LLP

425 Park Avenue

New York, New York 10022

Att: Lynn Toby Fisher, Esq.

If to the Company:

Saatchi & Saatchi SSNA, Inc

375 Hudson Street

New York, New York 10014

Att: General Counsel

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

     11. Governing Law; Jurisdiction

     This Agreement shall be deemed made under and shall be governed by the
substantive laws of the State of New York, excluding its conflict of laws
rules. The parties to this Agreement irrevocably submit themselves to the
jurisdiction of the state and federal courts within the State of New York with
respect to any cause of action arising under or relating to this Agreement or
the Executive’s employment by the Company.

     12. Severability

     If any provision contained in this Agreement (or any part thereof) is
construed to be invalid or unenforceable or deemed to otherwise be in conflict
with any applicable statute, rule, judicial interpretation binding on the
parties, regulation or ordinance, such provision shall be deemed to be modified
or altered to conform thereto or, if that is not possible, to be omitted from
this Agreement; and the invalidity of any such provisions shall not affect the
force, effect and validity of the remaining portions hereof, which shall be
given full effect without regard to the invalid portions.

     13. Damages

     In any action or proceeding relating to this Agreement with respect to
which damages are an adequate remedy, the parties agree that no damages other
than compensatory damages shall be sought or claimed by any party and each
party waives any claim, right or

8

 

entitlement to punitive, exemplary, or consequential damages, or any
statutory damages, or any other damages of any kind or nature in excess of
compensatory damages, and any court is specifically divested of any power to
award any damages in the nature of punitive, exemplary, or consequential
damages, or any statutory damages, or any other damages of any kind or nature
in excess of compensatory damages.

     14. Entire Agreement

     Except as specifically provided in paragraph 5.2, this Agreement,
constitutes the entire understanding among the Company, the Parent and the
Executive as to the subject matter covered herein, and all prior understandings
and agreements are merged herein and succeeded hereby. The Company hereby
assumes the obligations under the indemnification agreement dated September
1997 between the Executive and Cordiant Compton Worldwide Inc., as though it
were the “Company” thereunder, and such agreement shall be binding on the
Company, mutatis mutandis.

     15. Captions

     Paragraph headings are for convenience of reference only and shall not be
considered a part of this Agreement.

     16. No other contracts

     The Executive represents and warrants to the Company that the Executive
has no contracts or agreements of any nature that the Executive has entered
into with any other person, firm or corporation that contain any restraints on
the Executive’s ability to perform his obligations under this Agreement.

     17. Compliance with Rules and Policies

     The Executive shall perform all services in accordance with the policies,
procedures and rules established by the Company and the board of directors of
the Company and the Conseil de Surveillance of the Parent. In addition, the
Executive shall comply with all laws, rules and regulations which are
applicable to the employees of the Company generally.

     18. Amendment

     No amendment, change, alteration or other modification of this Agreement
shall be made except in writing signed by all parties hereto.

     19. Withholding

     Any payments provided for herein shall be reduced by any amounts required
to be withheld by the Company under applicable United States federal, state or
local law. The Company agrees that, for tax purposes, the Executive is to be
in the same position he would be in if he were not subject to any non-United
States tax law or taxing authority, and agrees to make the Executive whole, on
an after tax basis, to the extent that he is not in such position with respect
to any United States tax year in the Term of Employment. The Executive agrees
that he

9

 

will take all action necessary to reduce his tax liability in any tax
jurisdiction, including requesting a credit or refund from any such
jurisdiction, and, to the extent that, as a result of any such credit or
refund, the Executive is in a more favourable tax position than he would be if
he were not subject to any non-United States tax law or taxing authority, and
the Company has remitted amounts on his behalf to any such taxing authority
that gave rise to such credit or refund, the Executive shall remit the amount
of such credit or refund to the Company promptly upon the Executive’s receipt
thereof.

     20. Counterparts

     This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, and all of which shall constitute one
and the same instrument.

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

	 	 	 
	SAATCHI & SAATCHI NORTH AMERICA, INC.
	 	 
	 
	 	 
	By: /s/ William H. Cochrane

	 	/s/ Kevin Roberts, Sept. 16, 2002
	
 

	 	
 
	 
	 	 
	/s/ Robert L. Seelert
	 	 
	
 
	 	 
	ROBERT L. SEELERT
	 	 

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