XxXXXX-XXXXXXXX
XxXxxx-Xxxxxxxx, Inc.
000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, XX 00000
Phone 000-000-0000. Telex 620514
As of November 12, 1986
Xx. Xxxx X. Xxxxxx, Xx.
XxXxxx-Xxxxxxxx, Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx. X.X. 00000
Dear Xx. Xxxxxx:
This letter sets forth the terms and conditions under which
XxXxxx-Xxxxxxxx, Inc. ("McCann") will pay you a special bonus
("Bonus") with respect to your services during the calendar year
1986.
In addition to any salary or other compensation which may
be payable to you from time to time with respect to your
services for McCann during 1986, McCann will pay you a bonus in
the amount of $100,000 provided that you are in the employ of
McCann on December 31, 1986.
Payment of the Bonus will be deferred until January 15,
1988, at which time the Bonus will be paid to you together with
credits equivalent to interest payable in accordance with the
terms and conditions of the Plan for Credits Equivalent to
Interest on Balances of Deferred Compensation Owing under
Employment Agreements (the "Plan"), adopted effective January 1,
1974 by our parent company, The Interpublic Group of Companies,
Inc. A copy of the Plan is attached to this letter.
If you die prior to receiving the Bonus in accordance with
the provisions hereof, any amount payable in accordance with the
provisions hereof shall be paid to the Executor of your Will or
the Administrator of Your Estate.
Nothing in this letter shall obligate you to remain in
XxXxxx'x employ or obligate McCann to retain you in its employ.
This letter shall be supplementary to any Employment Agreement
you may have covering your employment by McCann or any affiliate
thereof.
It is understood that no payment made in accordance with
this letter shall be considered for purposes of determining your
benefits under the Interpublic Pension Plan unless made to you
while you are in the employ of McCann or any affiliate thereof.
PAGE
Xx. Xxxx X. Xxxxxx, Xx.
As of November 12, 1986
This agreement shall be governed by and construed in
accordance with the laws of the State of New York.
Will you please indicate your agreement to the foregoing by
signing the enclosed copy of this letter.
Very truly yours,
XxXXXX-XXXXXXXX, INC.
By Xxxxxx X. Xxxxx
AGREED
Xxxx X. Xxxxxx, Xx.
PAGE
Plan for Credits Equivalent to Interest
on
Balances of Deferred Compensation
Owing under Employment Agreements
Effective Date: January 1, 1974.
Balances Covered:
All deferred compensation, under Employment
Agreements to which the Corporation is a
party, owing (even though not yet payable and
even though subject to conditions) on January
1, 1974 or thereafter to persons who on
January 1, 1974 or thereafter are in the
employ of the Corporation or its
subsidiaries, including balances owing to
persons who cease to be employees after that
date; subject to the right of the Corporation
to discontinue further credits of sums
equivalent to interest effective at the
beginning of any calendar year on prior
notice to the employees or former employees
affected.
Date on Which
Sums Equivalent
to Interest Are
Credited:
Last day of each calendar quarter (hereafter
referred to as a "Crediting Date"), but in
the Year in which the final balance is paid
equivalents are also creditable on the date
of the last payment and shall be included in
the amounts so disbursed on that date.
Rates:
The prevailing rate payable on regular
savings accounts by New York City savings
banks on average for the year plus 1%, such
rate to be determined conclusively by the
Chief Financial Officer of the Corporation
and set forth by him in a certificate filed
with the Secretary of the Corporation;
provided, however, that the rate credited
under this plan shall not be less than 8% for
the calendar year 1980; not be less than 9%
for the calendar years 1981 and 1982: not be
less than 10% for the calendar years 1983,
1984 and 1985; not be less than 9% for the
calendar year 1986; and not be less than 6
1/2% for the calendar year 1987.
PAGE
Computation and
Compounding
Procedures:
On each Crediting Date, credits equivalent to
interest for the relevant period are to be
computed on the average balance of deferred
compensation owing by the Corporation under
each Employment Agreement including sums
equivalent to interest credited on prior
Crediting Dates, such average balance to be
computed pursuant to such method or methods
as shall be determined conclusively by the
Chief Financial Officer of the Corporation.
Terms of Payment
to employees and
Former employees:
Credits equivalent to interest shall be paid
out at the same times, in the same manner,
and on the same terms and conditions as other
items of deferred compensation accrued
pursuant to each Employment Agreement.
As amended through 11/86
