Document:

EX-10.III.A.5

 

Exhibit 10(iii)(A)(5)

The Interpublic Capital Accumulation Plan

Restated Participation Agreement

          WHEREAS,                                          (the “Participant”) and The Interpublic Group of Companies, Inc.
(“Interpublic”) are parties to a Participation Agreement under The Interpublic Capital Accumulation
Plan (“CAP”), dated                                                              [and amended as of            
                              (insert dates of any
amendments, including payment elections)] (the “Participation Agreement”); and

          WHEREAS, the Participant’s benefit under CAP is governed by the terms of [his] [her]
Participation Agreement and by the terms of the pamphlet entitled “The Interpublic Capital
Accumulation Plan,” as amended and restated effective January 1, 2007, and as amended from time to
time thereafter (the “Plan Document”); and

          WHEREAS, the Participant and Interpublic wish to amend and restate the Participation Agreement
to comply with a good-faith interpretation of Section 409A of the Internal Revenue Code and the
guidance issued by the Internal Revenue Service thereunder, and to make clear that the provisions
set forth in the Plan Document that are triggered by a Change of Control (as defined in the Plan
Document) apply to the Participant’s benefit under CAP;

          NOW, THEREFORE, the Participation Agreement is hereby amended and restated in its entirety as
follows:

	1.	 	Effective Date. This amended and restated Participation Agreement shall be effective
as of January 1, 2007, except to the extent provided otherwise herein.
	 
	2.	 	Credit Amount. Effective                                          [insert effective date for current dollar
credit amount], the Participant’s annual dollar credit under CAP shall be $                                         and
shall be credited only under the circumstances, and at the time, specified by the Plan
Document. [If the Participant’s dollar credit was ever increased:] [For                                         
(insert year(s), the Participant’s annual dollar credit under CAP was $                                        , and was
credited on December 31st of such years.]
	 
	3.	 	Interest. The Participant’s CAP Account shall be credited with interest on December
31st of each calendar year (starting with the calendar year after the calendar year
in which the Participant’s participation in the CAP first became effective), at the rate
specified by the Plan Document. For 2007, the interest rate is 4.71%.
	 
	4.	 	Vesting. Subject to paragraph 5, below, and the provisions of the Plan Document that
are triggered by a Change of Control (as defined in the Plan Document), the Participant’s CAP
account is scheduled to become fully vested on                                                              (assuming the
Participant continues in the employment of Interpublic and its Subsidiaries until this date).
	 
	5.	 	Non-Competition and Non-Solicitation. For a period of two (2) years following the
termination of the Participant’s employment for any reason, the Participant shall not:

 

 

(a) accept employment with or serve as a consultant, advisor or in any other capacity to an
employer that is in competition with the business unit or units of Interpublic by which the
Participant is employed (the “Business Unit”); (b) directly or indirectly, either on the
Participant’s own behalf or on behalf of any other person, firm or corporation, solicit or
perform services for any account that is a client of the Business Unit at the time of the
Participant’s termination of employment with the Business Unit or that was a client of the
Business Unit at any time within one year prior to the date of the Participant’s termination
of employment; or (c) directly or indirectly employ or attempt to employ or assist anyone
else to employ any person who is at such time or who was within the six-month period
immediately prior to such time in the employ of the Business Unit. If the Participant
breaches any provision of this paragraph 5, [he] [she] shall forfeit all of the interest
that has been or will be credited to [his] [her] CAP account.

The Participant acknowledges that these provisions are reasonable and necessary to protect
Interpublic’s legitimate business interests, and that these provisions do not prevent the
Participant from earning a living. If at the time of enforcement of any provision of this
Agreement, a court shall hold that the duration, scope, or area restriction of any provision
hereof is unreasonable under circumstances now or then existing, the parties hereto agree
that the maximum duration, scope, or area reasonable under the circumstances shall be
substituted by the court for the stated duration, scope, or area.

	6.	 	Form of Payment.

	 	a.	 	Subject to the special rules set forth in the Plan Document that apply
following a Change of Control (as defined in the Plan Document), and the remaining
provisions of this paragraph 6, the Participant’s vested benefit under CAP (if any)
shall be distributed in the following form [check one]:

       Lump sum

       Monthly installments over 10 years*

       Monthly installments over 15 years*

* Notwithstanding the election above, if the Participant terminates employment
before age 55, or before being credited with at least five years of participation in
CAP, [his] [her] vested benefit under CAP (if any) will automatically be paid in a
lump sum.

The Participant may not change the form in which [his] [her] benefit under CAP will
be paid, except to the extent (if at all) that the Plan Document permits the
Participant to make such a change.

	 	b.	 	The form of payment specified by subparagraph a, above, shall be effective only
if payment of the Participant’s vested benefit begins on or after January 1, 2008. If
payment of the Participant’s vested benefit begins before January 1, 2008, the

 

			
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	Participation Agreement – Restatement for Existing Participant	 	 
	 	 	 
	Participant                                         	 	 

 

 

	 	 	 	Participant’s vested benefit under CAP shall be paid in the form specified by the
Participation Agreement as in effect on December 31, 2006.

	7.	 	Benefit Commencement Date. Interpublic shall begin payment of the Participant’s
vested benefit under CAP at the time prescribed by the Plan Document. However, the following
transition rule shall apply in 2007:

	 	a.	 	If, under the terms of CAP and the Participation Agreement in effect on
December 31, 2006, payment of the Participant’s benefit was scheduled to begin before
January 1, 2008, payment of the Participant’s benefit shall begin at the time
prescribed by the terms of CAP and such Participation Agreement in effect on December
31, 2006.
	 
	 	b.	 	If subparagraph a, above, does not apply:

	 	(i)	 	Payment of the Participant’s benefit shall not begin before
January 1, 2008; and
	 
	 	(ii)	 	If the Plan Document prescribes that payment of the
Participant’s benefit should begin before January 1, 2008, payment of such
benefit shall begin on Interpublic’s first pay date for January 2008.

The Participant may not change the time at which payment of [his] [her] benefit under CAP
begins, except to the extent (if at all) that the Plan Document permits the Participant to
make such a change.

	8.	 	Relationship to Plan Document. This Participation Agreement is intended to be
executed and administered in conjunction with the Plan Document. To the extent that this
Participation Agreement does not address an issue, the applicable terms and provisions of the
Plan Document shall govern such issue. To the extent that any term or provision of this
Participation Agreement is inconsistent with a term or provision of the Plan Document, the
term or provision of this Participation Agreement shall govern.

	9.	 	Complete Statement. This Participation Agreement, as amended and restated hereby, is
a complete statement of the Participant’s benefit and other rights under CAP and supersedes
any prior statement of the Participant’s benefit or other rights under CAP (except to the
extent expressly provided in paragraphs 6 and 7, above). Any change to the terms of this
Participation Agreement or to the Participant’s rights under CAP shall be adopted by executing
an amendment or supplement to the Plan Document or to this Participation Agreement.

	10.	 	Knowing and Voluntary Agreement. By signing this Participation Agreement, the
Participant acknowledges that —

	 	•	 	[he] [she] has received and reviewed the Plan Document and this Participation
Agreement,

 

			
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	Participation Agreement – Restatement for Existing Participant	 	 
	 	 	 
	Participant                                         	 	 

 

 

	 	•	 	[he] [she] fully understands the terms of the Plan Document and this Participation
Agreement, and
	 
	 	•	 	[he] [she] is entering into this Participation Agreement voluntarily.

          IN WITNESS WHEREOF, Interpublic, by its duly authorized officer, and the Participant have
caused this amended and restated Participation Agreement to be executed.

	 	 	 	 	 	 	 
	The Interpublic Group of Companies, Inc.	 	 	 	Participant
	 
	 	 	 	 	 	 
	BY:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	Timothy A. Sompolski

Executive Vice President,

Chief Human Resources Officer	 	 	 	 
	 
	 	 	 	 	 	 
	DATE:

	 	 	 	DATE:	 	 
	 

	 	 
	 	 	 	 

Return to Interpublic’s Human Resources Department.

 

			
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	Participation Agreement – Restatement for Existing Participant	 	 
	 	 	 
	ParticipantEX-10.III.A.6

 

Exhibit 10(iii)(A)(6)

Includes 409A and CIC Changes

FORM FOR NEW PARTICIPANTS

Note: This form should not be used for benefit increases.

Received by HR                                         

The Interpublic Capital Accumulation Plan

Participation Agreement

          WHEREAS,                                          (the “Participant”) is a key executive of The
Interpublic Group of Companies, Inc. (“Interpublic”) and its subsidiaries, and has been approved by
Interpublic’s Management Human Resources Committee to participate in The Interpublic Capital
Accumulation Plan (“CAP”);

          WHEREAS, the Participant has received and reviewed the pamphlet entitled “The Interpublic
Capital Accumulation Plan,” as amended and restated effective January 1, 2007, which sets forth the
basic terms and conditions of CAP (such pamphlet, as may be amended from time to time, being
referred to herein as the “Plan Document”); and

          WHEREAS, the Plan Document provides that certain details with regard to the Participant’s
account and other rights and responsibilities under CAP are to be set forth in the Participant’s
Participation Agreement;

          NOW, THEREFORE, the undersigned Participant agrees to be bound by the terms of the Plan
Document, which terms are incorporated herein by reference, and modified and expanded as follows:

	1.	 	Effective Date. This Participation Agreement shall be effective as of the following
date:

	 	•	 	If the Participant has not participated in any Account Balance Plan (as defined in
the Plan Document), and [he] [she] executes and returns this Participation Agreement to
Interpublic’s Human Resources Department no later than                      [insert the
30th day after he first became eligible to participate in CAP], this
Participation Agreement shall be effective on the first day of the first calendar month
that starts after [he] [she] returns the executed Participation Agreement to
Interpublic’s Human Resources Department.
	 
	 	•	 	If the Participant has participated in any Account Balance Plan (as defined in the
Plan Document), or [he] [she] does not return an executed copy of this Participation
Agreement to Interpublic’s Human Resources Department by the date specified in the
preceding paragraph, this Participation Agreement shall be effective as of January
1st of the first calendar year that starts after [he] [she] returns the
executed Participation Agreement to Interpublic’s Human Resources Department.

	2.	 	Credit Amount.

	 	•	 	The Participant’s dollar credit under CAP for calendar year                      [insert year
in which Participation Agreement first becomes effective] shall be $                    

 

 

	 	 	 	[insert amount of prorated credit]; provided, however, that if the Participant does not
return an executed copy of this Participation Agreement to Interpublic’s Human
Resources Department by                      [insert the 30th day after he first
became eligible to participate in CAP], [he] [she] shall not receive a dollar credit
for calendar year                      (or any subsequent calendar year that begins on or
before the date [he] [she] returns an executed copy of this Participation Agreement to
Interpublic’s Human Resources Department).
	 
	 	•	 	The Participant’s annual dollar credit under CAP for each full calendar year after
the calendar year in which [he] [she] returns an executed copy of this Participation
Agreement to Interpublic’s Human Resources Department shall be $                    .

	 	 	Dollar credits shall be credited to the Participant’s CAP Account only at the time, and
under the circumstances, specified by the Plan Document.
	 
	3.	 	Interest. The Participant’s CAP Account shall be credited with interest on December
31st of each calendar year, starting with the calendar year after the calendar year
in which the first dollar credit is added to the Participant’s CAP Account, at the rate
specified by the Plan Document. For example, if the Participant returns an executed copy of
this Participation Agreement to Interpublic’s Human Resources Department by                     
[insert the 30th day after he first became eligible to participate in CAP], the
first dollar credit will be added to the Participant’s CAP Account on December 31, ___, and
the first interest credit will be added to the Participant’s CAP Account on December 31,
___ [insert the next year]. If interest were to be credited to the Participant’s CAP
Account for 2007, the interest rate for 2007 would be 4.71%.
	 
	4.	 	Vesting. Subject to paragraph 5, below, and the provisions of the Plan Document that
are triggered by a Change of Control (as defined in the Plan Document), the Participant’s CAP
account is scheduled to become fully vested on the following date (assuming the Participant
continues in the employment of Interpublic and its Subsidiaries until such date):

	 	•	 	If the Participant returns an executed copy of this Participation Agreement to
Interpublic’s Human Resources Department by                      [insert the
30th day after he first became eligible to participate in CAP], the
scheduled vesting date will be                      [insert the third anniversary of the
last day of the calendar month in which the Participant returns his executed
Participation Agreement; for example, if participant turns in Agreement on 6/15/08,
vesting date would be 6/30/11].
	 
	 	•	 	If the Participant does not return an executed copy of this Participation Agreement
to Interpublic’s Human Resources Department by the date specified in the preceding
paragraph, the scheduled vesting date will be December 31st of the third calendar year
that starts after the Participant returns an executed copy of this Participation
Agreement to Interpublic’s Human Resources Department.

	5.	 	Non-Competition and Non-Solicitation. For a period of two (2) years following the
termination of the Participant’s employment for any reason, the Participant shall not:
(a) accept employment with or serve as a consultant, advisor or in any other capacity to an
 

 

			
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	Participation Agreement – New Participant	 	 
	 
	Participant                                         	 	 
	 	 	 

 

 

	 	 	employer that is in competition with the business unit or units of Interpublic by which the
Participant is employed (the “Business Unit”); (b) directly or indirectly, either on the
Participant’s own behalf or on behalf of any other person, firm or corporation, solicit or
perform services for any account that is a client of the Business Unit at the time of the
Participant’s termination of employment with the Business Unit or that was a client of the
Business Unit at any time within one year prior to the date of the Participant’s termination
of employment; or (c) directly or indirectly employ or attempt to employ or assist anyone else
to employ any person who is at such time or who was within the six-month period immediately
prior to such time in the employ of the Business Unit. If the Participant breaches any
provision of this paragraph 5, [he] [she] shall forfeit all of the interest that has been or
will be credited to [his] [her] CAP account.
	 
	 	 	The Participant acknowledges that these provisions are reasonable and necessary to protect
Interpublic’s legitimate business interests, and that these provisions do not prevent the
Participant from earning a living. If at the time of enforcement of any provision of this
Agreement, a court shall hold that the duration, scope, or area restriction of any provision
hereof is unreasonable under circumstances now or then existing, the parties hereto agree
that the maximum duration, scope, or area reasonable under the circumstances shall be
substituted by the court for the stated duration, scope, or area.
	 
	6.	 	Form of Payment. Subject to the special rules set forth in the Plan Document that
apply following a Change of Control (as defined in the Plan Document), and the remaining
provisions of this paragraph 6, the Participant’s vested benefit under CAP (if any) shall be
distributed in the following form [check one]:
	 
	 	 	___Lump sum
	 
	 	 	___Monthly installments over 10 years*
	 
	 	 	___Monthly installments over 15 years*
	 
		 	 * Notwithstanding the election above, if the Participant terminates employment before age
55, or before being credited with at least five years of participation in CAP, [his] [her]
vested benefit under CAP (if any) will automatically be paid in a lump sum.
	 
	 	 	The Participant may not change the form in which [his] [her] benefit under CAP will be paid,
except to the extent (if at all) that the Plan Document permits the Participant to make such
a change.
	 
	7.	 	Benefit Commencement Date. Interpublic shall begin paying the Participant’s vested
benefit at the time prescribed by the Plan Document. The Participant may not change the time
at which payment of [his] [her] benefit under CAP begins, except to the extent (if at all)
that the Plan Document permits the Participant to make such a change.
	 
	8.	 	Relationship to Plan Document. This Participation Agreement is intended to be
executed and administered in conjunction with the Plan Document, which is incorporated herein
by
reference. To the extent that this Participation Agreement does not address an issue, the
applicable terms and provisions of the Plan Document shall govern such issue. To the extent
that any term or provision of this Participation Agreement is inconsistent with a

 

			
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	Participation Agreement – New Participant	 	 
	 
	Participant                                         	 	 
	 	 	 

 

 

	 	 	term or
provision of the Plan Document, the term or provision of this Participation Agreement shall
govern.
	 
	9.	 	Complete Statement. This Participation Agreement is a complete statement of the
Participant’s benefit and other rights under CAP. Any change to the terms of this
Participation Agreement or to the Participant’s rights under CAP shall be adopted by executing
an amendment or supplement to the Plan Document or to this Participation Agreement.
	 
	10.	 	Knowing and Voluntary Agreement. By signing this Participation Agreement, the
Participant acknowledges that —

	 	•	 	[he] [she] has received and reviewed the Plan Document and this Participation
Agreement,
	 
	 	•	 	[he] [she] fully understands the terms of the Plan Document and this Participation
Agreement, and
	 
	 	•	 	[he] [she] is entering into this Participation Agreement voluntarily.

          IN WITNESS WHEREOF, Interpublic, by its duly authorized officer, and the Participant have
caused this Participation Agreement to be executed.

	 	 	 	 	 	 	 
	The Interpublic Group of Companies, Inc.	 	 	 	Participant
	 
	 	 	 	 	 	 
	BY:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	Timothy A. Sompolski

Executive Vice President,

Chief Human Resources Officer	 	 	 	 
	 
	 	 	 	 	 	 
	DATE:

	 	 	 	DATE:	 	 
	 

	 	 
	 	 	 	 

Return to Interpublic’s Human Resources Department.

 

For HR Use Only

 

Effective Date:                                         

 

Vesting Date:                                         

 

First Dollar Credit: $                    , to be credited on December 31,                     

  

First Interest Credit: To be credited on December 31,                     

 

			
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	Participation Agreement – New Participant	 	 
	 
	Participant

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