<PAGE>
EXHIBIT 2.4
Execution Copy
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SECOND SUPPLEMENTAL AND AMENDMENT AGREEMENT TO
THE MERGER AGREEMENT
by and among
ADVERTISING ANTWERPEN B.V.
CANTABRO CATALANA DE INVERSIONES, S.A.
COMPANIA DE CARTERA E INVERSIONES, S.A.
DEYA, S.A.
HAVAS ADVERTISING S.A.
HAVAS ADVERTISING INTERNATIONAL S.A.
MARTINEZ-ROVIRA FAMILY
MEDIA PLANNING GROUP S.A.
October 5th, 1999
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<PAGE>
Index
<TABLE>
<CAPTION>
<S> <C>
Article 1.- Audit Adjustment........................................................................... 3
Article 2.- Migration List Clients Adjustment.......................................................... 3
Article 3.- Migration US (Article 1.3.1 Merger Agreement / Article 13.3 First Supplemental Agreement).. 4
Article 4.- Migration Commercial Contracts............................................................. 4
Article 5.- Sopec Acquisition - Shareholders participation on Merger Date.............................. 5
5.1.- Sopec Acquisition contract.................................................................... 5
5.2.- Shareholders initial participation on Merger Date............................................. 6
5.3.- Shareholder participation after Sopec Increase................................................ 6
5.4.- Extraordinary dividend and cancellation of Sopec Increase..................................... 7
5.5.- BSCH a party to certain Merger Documents...................................................... 8
Article 6.- Contribution of Holding companies.......................................................... 8
6.1.- Havas Inc..................................................................................... 8
6.2.- Societe d'Etudes de Production et de Sponsoring SNC ("Societe d'Etude"):...................... 9
Article 7-. French Personnel........................................................................... 9
Article 8.- MP excluded subsidiaries................................................................... 9
Article 9.- Miscellaneous.............................................................................. 10
9.1.- Determination of New MP....................................................................... 10
9.2.- Merger Date................................................................................... 10
9.3.- Martinez-Rovira Family distribution........................................................... 10
9.4.- Adjustments among MP Shareholders............................................................. 10
Article 10.- Additional agreements - Schedule 1........................................................ 10
Article 11.- Havas International as a party............................................................ 10
Article 12.- Integration of this agreement............................................................. 10
Schedule I - Additional Agreements.................................................................. 13
Annex I - Audited Migration List 1998............................................................... 15
Annex II - Havas Inc. balance sheet................................................................. 16
Annex III - Societe d'Etude balance sheet........................................................... 17
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</TABLE>
<PAGE>
SECOND SUPPLEMENTAL AND AMENDMENT AGREEMENT TO THE
MERGER AGREEMENT
This agreement is executed on this 5th day of October, 1999
BY AND AMONG
ADVERTISING ANTWERPEN B.V., a "besloten vennootschap met beperkte
aansprakelijkheid" (private company with limited liability) duly incorporated
and legally existing under the laws of The Netherlands with corporate seat in
Amsterdam, The Netherlands, and registered office at World Trade Center, Tower
B, 17th floor, Strawinskylaan 1725, 1077 XX Amsterdam, The Netherlands,
registered with the Trade Register in Amsterdam under number 33.250.361, duly
represented by Mr. Leopoldo Rodes Castane, of Spanish nationality, of legal age,
and with passport number 36210822, by virtue of a power of attorney granted by
the Managing Director, formalized before the Notary Public Dr. Gerard Strang of
Amsterdam, The Netherlands, on October 1/st/, 1999 or Mr. Alfonso Rodes Vila, of
Spanish nationality, of legal age, and with Identification Number 46.117.217-V
("Advertising Antwerpen"),
CANTABRO CATALANA DE INVERSIONES, S.A., a limited liability company duly
incorporated and legally existing under the laws of Spain, with registered
office in Santander (Spain), Paseo de Pereda n degree 9, registered with the
Trade Register in Cantabria, volume 643, folio 97, page number S-8744, second
inscription, with Tax Identification Number A-08007478, duly represented by Mr.
Francisco Gonzalez-Robatto Fernandez, of Spanish nationality, of legal age, with
Identification Number 50.792.382X, by virtue of the power of attorney granted by
the Board of Directors on September 30th, 1999 and formalized before the Notary
Public of Santander Mr. Jose Maria Prada Diez on October l/st/, 1999, with
number 2861 of his protocol ("Cantabro Catalana"),
COMPANIA DE CARTERA E INVERSIONES, S.A., a limited liability company duly
incorporated and legally existing under the laws of Spain, with registered
office in Madrid (Spain), Paseo de la Castellana 81, registered at the Trade
Register in Madrid volume 5129, 4279 of the third section, folio 24, page number
40669, with Tax Identification Number A-48027890, duly represented by Mr. Manuel
Esteve Claramunt, of Spanish nationality, of legal age, and with Identification
Number 39000910-V; by virtue of the power of attorney granted by the Sole
Administrator (Administrador Solidario) and formalized before the Notary Public
of Bilbao Mr. Jose Maria Arriola Arana with number 2.017 of his protocol, on
October 1st, 1999 ("Compania de Cartera e Inversiones"),
DEYA, S.A., a limited liability company duly incorporated and legally existing
under the laws of Luxembourg, with registered office at 19-21 Boulevard du
Prince Henri, L-1724 Luxembourg, registered with the Trade Register in
Luxembourg under number 26.285, Section B, duly represented by Mr. Enrique Pinel
Lopez, of Spanish nationality, of legal age, and with Identification Number
2.011.846-K in his capacity as Administrator of the company specially
1
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empowered by virtue of the resolution passed by the Board of Directors on
January 19, 1999, legalised before the Notary Public of Luxembourg, Mr. Paul
Bettingen, on January 22/nd/, 1999 ("Deya"),
Mr. JOSE MARTINEZ-ROVIRA VIDAL, of Spanish nationality, of legal age and with
Identification Number 37.604.987-X, on his own behalf and name, and duly
representing:
- Mrs. MARIA LUISA MUNOZ ALVAREZ, of Spanish nationality, of legal age and with
Identification Number 37.749.687-V;
- Mrs. CRISTINA MARTINEZ-ROVIRA MUNOZ, of Spanish nationality, of legal age and
with Identification Number 46.133.906-T; and
- Mrs. SANDRA MARTINEZ-ROVIRA MUNOZ, of Spanish nationality, of legal age and
with Identification Number 38.135.202-Y,
by virtue of a power of attorney granted in his favour by the above-mentioned
persons, formalized on September 30/th/, 1999 before the Notary Public of
Barcelona, Mr. Amador Lopez Balina, with number 4,401 of his protocol, (together
"Martinez-Rovira Family").
MEDIA PLANNING GROUP S.A. (formerly known as INVERSIONES Y SERVICIOS
PUBLICITARIOS, S.A.), a limited liability company duly incorporated and legally
existing under the laws of Spain, with registered office in Madrid, Spain, calle
Alberto Alcocer, n degree 10, Apt. 3 B, registered with the Trade Register in
Madrid, volume 8661 general, 7529 of the third section of the Company register,
folio 95, page number 82483-2 with Tax Identification Number A-78809662, duly
represented by Mr. Fernando Rodes Vila of Spanish nationality, of legal age and
with Identification Number 46.219.948-E; by virtue of the power of attorney
granted by the Sole Administrator (Administrador Unico), before the Notary
Public of Madrid, Mr. Carlos de Prada Guaita with number 3.421 of his protocol,
on September 30/th/, 1999 ("New MP").
(collectively the "MP Shareholders")
and
HAVAS ADVERTISING S.A., a limited liability company duly incorporated and
legally existing under the laws of France, with registered office at 84, rue de
Villiers, 92300 Levallois-Perret (France), registered with the Trade Register in
Nanterre under number B335480265, duly represented by Mr. Alain de Pouzilhac, of
French nationality, of legal age, married, with address in 75008 Paris, 21 Rue
de Miromesnil, and with passport number 753197031529, in his capacity as
President of the Board of Directors ("HA").
HAVAS ADVERTISING INTERNATIONAL S.A., a limited liability company duly
incorporated and legally existing under the laws of France, with registered
office at 84, rue de
2
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Villiers, 92300 Levallois-Perret (France), registered with the Trade Register in
Nanterre under number B342966025, duly represented by Mr. Alain de Pouzilhac, of
French nationality, of legal age, married, with address in 75008 Paris, 21 Rue
de Miromesnil, and with passport number 753197031529, in his capacity as
President of the Board of Directors ("Havas International").
(jointly MP Shareholders and HA, referred as the "Parties").
WHEREAS
I. The Parties have executed a Merger Agreement on November 29/th/, 1998, (as
amended and supplemented subsequently on various dates) providing for the
Parties to combine their Media Business into one entity which would either
directly or through subsidiaries undertake in the long term all the Media
Business activities of HA Group and MP Group and jointly develop the
combined entity.
II. The Parties wish to agree certain additional pacts in relation with the
Merger.
NOW THEREFORE the Parties hereby agree as follows:
Capitalized terms shall have the meaning ascribed to them in this Agreement, if
defined herein, or the meaning ascribed to them in the Merger Documents, if
defined therein. Terms are defined in the text of the Agreement where most
appropriate. "Merger Documents" refers to the Merger Agreement, as amended and
supplemented, and all Implementation Agreements, as amended and supplemented.
Article 1.- Audit Adjustment
The Parties agree that, in order to maintain their respective Agreed Percentages
on the basis of the 1998 Audited Accounts, all necessary calculations have been
completed and all required adjustments have been made pursuant to Articles 1.5.1
and 1.6 of the Merger Agreement, as amended and/or completed by Articles 4.2, 11
and 12 of the supplemental and amendment agreement to the Merger Agreement dated
March 22/nd/, 1999 (the "First Supplemental Agreement"), as a result of which
(a) the amount of the Final MVBMS Excess Fees is fixed at US$917,000 and (b) HA
is to make an additional contribution to New MP of 16,516,000 French francs.
This contribution shall be made simultaneously with the increase in share
capital of New MP referred to in clause 5.3 or 5.4 as applicable.
Article 2.- Migration List Clients Adjustment
3
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The Audited Migration List 98 as defined in clause 1.5.2.1 "General Procedure"
of the Merger Agreement and in article 13.4 "Annex G and H of the Merger
Agreement" of the First Supplemental Agreement is attached as Annex 1.
The Parties agree (i) to delay until December 31/st/, 1999 the transfer of the
HA Group advertising agencies Media Business in Italy to Mediapolis
Mediapressing, S.r.l., agreed in clause 5 "Migration" of the Contribution
Agreement and (ii) to effect the aforementioned transfer by way of a purchase
and sale agreement between Mediapolis Mediapressing S.r.l. and the relevant HA
Group advertising agencies, the valuation method agreed in the Merger Agreement
being maintained. The representations and warranties agreed in the Contribution
Agreement shall be deemed made as of the date of transfer.
Article 3.- Migration US (Article 1.3.1 Merger Agreement / Article 13.3 First
Supplemental Agreement)
The period provided in Article 1.3.1 Section "United States" of the Merger
Agreement for HA to complete the different steps set forth in such Article 1.3.1
in preparation for the transfer to New MP of the Media Business of the HA Group
in the United States is hereby extended to December 31/st/, 2000.
Once the transfer of the relevant clients to the New U.S. Cos has been effected
by HA, HA shall notify New MP of this fact. Within 90 days of such notification
(during, which the two months due diligence agreed in the Merger Agreement
should be carried out), New MP, by simple majority vote of the Board of
Directors, shall decide whether to proceed with the transfer of all New US Cos
to New MP or not.
In the absence of such a decision within the aforementioned 90 day period, or in
the event that the Board of Directors of New MP should decide not to proceed
with the transfer of all of New US Cos to New MP, HA's obligations under Article
1.3.1 Section "United States" of the Merger Agreement shall immediately lapse.
Article 4.- Migration Commercial Contracts
Pursuant to clause 5.- "Migration" of the Contribution Agreement, the HA Group
advertising agencies have executed with the relevant New MP Subsidiaries
subcontracting agreements.
4.1.- In relation to these agreements, HA guarantees to New MP the following:
1. That all Media Business services contracted with the relevant HA Group
advertising agency shall be subcontracted with the relevant New MP
Subsidiary in the corresponding country.
4
<PAGE>
2. HA guarantees to New MP all payments effectively due by the HA Group
advertising agencies to the relevant New MP Subsidiary arising from the
corresponding subcontracting agreement.
4.2.- In the event the re-negotiation of a contract between a local HA agency
and any of its clients would not maintain the conditions determining the figures
used for EBITDA calculations, (annexed as Annex A) and the matter is not solved
between the relevant New MP Subsidiary and the local HA agency the issue shall
be submitted to the Synergy Committee or any other committee which may be
created for this purpose by the parties.
If the issue is not resolved through such submission to the Synergy Committee
(or to the other specialized committee), the issue shall be discussed between
the respective CEO of New MP and HA.
If the CEO's fail to resolve the issue through good faith negotiation, the
parties shall apply the last paragraph of Section 5 of the Contribution
Agreement executed on March 22/nd/, 1999, and any disagreement thereon may be
submitted to arbitration pursuant to clause 11 of said Contribution Agreement.
4.3.- This clause 4 shall remain in force until each and every HA Group client
has terminated its agreement with the relevant HA Group advertising agency for
the engagement of Media Business services whether as a result of (i) the HA
Group client having entered directly into an agreement with the New MP
Subsidiary, or any company to be designated by the New MP Subsidiary, for the
engagement of Media Business services or (ii) the termination of its agreement
with the relevant HA Group advertising agency for other reasons.
Article 5.- Sopec Acquisition - Shareholders participation on Merger Date
5.1.- Sopec Acquisition contract
--------------------------------
New MP executed on October 4/th/, 1999 an Undertaking to Contribute Shares with
Banco Santander Central Hispano ("BSCH") and a shareholders agreement regarding
a joint participation in a joint venture company (hereinafter, "Nueva Sopec")
between BSCH and New MP, directly and through MP.
BSCH will contribute to Nueva Sopec, Publicidad Sopec, S.A.'s Media Business,
and New MP will contribute to Nueva Sopec certain software rights and each of
BSCH and New MP agrees to channel clients to Nueva Sopec worth seven billion
(7,000,000,000) ptas. annually for a period of three years.
Once BSCH's contribution to Nueva Sopec is effected, BSCH shall contribute to
New MP shares of Nueva Sopec representing 59.9% of the share capital of Nueva
Sopec, in exchange for a 1.1% participation in the share capital of New MP after
the capital increases on Merger Date (the "Sopec Increase").
5
<PAGE>
Finally, BSCH has within three years as of the date of the Sopec Increase the
right to contribute its remaining 20% of the shares of Nueva Sopec to New MP
against an additional 0.65% of the capital of New MP after the capital increase
on the Merger Date.
The Parties acknowledge these conditions and undertake to vote in favour of the
aforementioned increases in share capital and allow BSCH to subscribe the
respective shares, provided that said increases shall be effected in such a
manner that HA is not diluted below 45%, and that the increases comply with
Spanish law valuation requirements.
HA shall, simultaneously, with the Sopec Increase contribute the amount of
16,516,000 French francs, referred to in clause 1 of this agreement, to New MP,
by subscribing the increase of capital of New MP necessary to maintain its 45%
participation in New MP (the "HA Contribution Increase").
5.2.- Shareholders initial participation on Merger Date
-------------------------------------------------------
Since the Sopec Increase is to occur within 4 months of the Merger Date, the
Parties agree that the initial share participation in New MP on Merger Date
shall be as follows:
Shareholders Number of shares Percentage
------------ ---------------- ----------
HA 168,994,286 45.0000%
Jose Martinez-Rovira Vidal 5,991,000 1.59530%
Ma Luisa Munoz Alvarez 3,139,000 0.8359%
Cristina Martinez-Rovira Munoz 82,000 0.0218%
Sandra Martinez-Rovira Munoz 82,000 0.0218%
Advertising Antwerpen 62,998,000 16.7752%
Deya 82,619,429 22.0000%
Compania de Cartera e Inversiones 41,309,714 11.0000%
Cantabro Catalana 10,327,429 2.7500%
------------------------------------------------------------------
TOTAL 375,542,858 100.00000%
5.3.- Shareholder participation after Sopec Increase and HA Contribution
------------------------------------------------------------------------
Increase
--------
The Parties agree that as a result of the Sopec Increase and the HA Contribution
Increase, the participations of all shareholders of New MP will be as follows:
6
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Shareholders Number of shares Percentage
------------ ---------------- ----------
HA 172,443,149 45.0000%
Advertising Antwerpen 62,998,000 16.4397%
Jose Martinez-Rovira 5,991,000 1.5634%
M/a/ Luisa Munoz Alvarez 3,139,000 0.8191%
Cristina Martinez-Rovira 82,000 0.0214%
Sandra Martinez-Rovira 82,000 0.0214%
Deya 82,619,429 21.5600%
Compania de Cartera e Inversiones 41,309,714 10.7800%
Cantabro Catalana 10,327,429 2.6950%
BSCH 4,215,277 1.1000%
-------------------------------------------------------------------
TOTAL 383,206,998 100.000%
5.4.- Extraordinary dividend and cancellation of Sopec Increase-
---------------------------------------------------------------
As part of the Sopec transaction, the Parties acknowledge that MP has approved
and distributed an extraordinary dividend for an amount of 1,369,730,000 ptas.,
in favour of the MP Shareholders.
Should the Sopec Increase fail to materialize within 4 months as of Merger Date
and/or the Undertaking to Contribute Shares be declared terminated, MP
Shareholders undertake to approve and subscribe, simultaneously to the HA
Contribution Increase, an increase in share capital paying in an amount equal to
the dividend mentioned in the above paragraph and receiving the shares which
would have been attributed to BSCH under the previous paragraph 5.3,
distributing these shares among them, so that the participations of all
shareholders of New MP will be as follows:
Shareholders Number of shares Percentage
------------ ---------------- ----------
HA 172,443,149 45.0000%
Jose Martinez-Rovira Vidal 6,113,265 1.5953%
M/a/ Luisa Munoz Alvarez 3,203,061 0.8359%
7
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Shareholders Number of shares Percentage
------------ ---------------- ----------
Cristina Martinez-Rovira Munoz 83,674 0.0218%
Sandra Martinez-Rovira Munoz 83,674 0.0218%
Advertising Antwerpen 64,283,672 16.7752%
Deya 84,305,540 22.0000%
Compania de Cartera e Inversiones 42,152,770 11.0000%
Cantabro Catalana 10,538,193 2.7500%
------------------------------------------------------------
TOTAL 383,206,998 100.0000%
5.5.- BSCH a party to certain Merger Documents
----------------------------------------------
Simultaneously with the contribution by BSCH of Sopec to New MP, BSCH shall
execute an additional agreement acknowledging and accepting all the conditions,
terms and obligations of the Merger Agreement (as amended and supplemented), the
Put Option Agreement and the Shareholders Agreement executed between HA and the
MP Shareholders.
Article 6.- Contribution of Holding companies
6.1.- Havas Inc.
---------------
The Parties agree to accept the contribution to New MP of all the shares of
Havas Inc. (previously Havas North America Inc.) in the terms agreed in Article
3.2 (e) of the Contribution Agreement, and HA affirms as at Merger Date the
representations and warranties provided in article 25 of Annex 3.5.1 of the
Contribution Agreement therein reflected, and the following:
(i) Pure holding Company: Havas Inc. is a purely holding company and (except
--------------------
as provided in (iii) below) has no obligations, employees, contracts or
assets or liabilities other than the shares of SFM.
(ii) Balance Sheet: The Havas Inc. balance sheet as at December 31st, 1998 is
-------------
annexed hereto as Annex II and accurately reflects all assets and
liabilities (whether actual or contingent) of Havas Inc. as at December
31st, 1998; Havas Inc. has no liabilities other than those included in
the 1998 balance sheet which have not been disclosed herein.
(iii) Subsequent events: Since December 31/st/, 1998, Havas Inc. has (i) not
-----------------
incurred any liability or obligation of any kind (other than tax
obligations arising from SFM activities and its tax transparency status),
(ii) has paid all liabilities reflected in the balance sheet as at
December 31/st/, 1998 and (iii) increased subsequent to December 31/st/,
1998 its paid-in capital by US dollars 13,650,000.
8
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6.2.- Societe d'Etudes de Production et de Sponsoring SNC ("Societe d'Etude"):
-----------------------------------------------------------------------------
It has been agreed that HA shall contribute the shares in Societe d'Etudes,
previously a shell company and currently the 100% owner of the division CCA, to
New MP.
In this respect HA hereby makes as at Merger, Date the representations in
article 25 of Annex 3.5.1 of the Contribution Agreement and the following:
(i) Pure holding company: Societe d'Etude has been - until the date of
--------------------
transfer to it of the division CCA - a purely holding company and had no
liabilities whatsoever nor any obligations, whether tax, social security or
any other legal nor contractual obligations, until such date. Societe
d'Etude has not had - until the date of transfer to it of the division CCA
- employees, assets, contracts.
(ii) Balance sheet: Societe d'Etude's balance sheet as at December 31st, 1998
-------------
is annexed hereto as Annex III, and accurately reflects all assets and
liabilities (whether actual or contingent) of Societe d'Etude as at
December 31st, 1998. Other than those assets and liablities contributed
with CCA and listed in the Contribution Agreement, Societe d'Etude has not
incurred any additional liabilities which have not been disclosed herein.
The time bar regime established in Article 3.5.3 of the Contribution Agreement
applicable to Havas Inc. shall be applicable to Societe d'Etude.
Article 7-. French Personnel
A "Estudio Actuarial" may be executed before December 31st, 1999 by New MP in
order to determine the provision necessary to comply with any legal obligations
related to the personnel of the French companies contributed directly or
indirectly by HA.
HA will pay in cash to the relevant New MP French Subsidiary any deficit arising
from the difference between:
a) the audited provision accounted on December 31st, 1998 for personnel in
the French companies contributed, and
b) the provision required by law, as determined by the "Estudio Actuarial".
Article 8.- MP excluded subsidiaries-
The parties acknowledge that Media Planning, S.A. has approved and distributed
on or prior to Merger Date an additional dividend equal to 305,167,000 pesetas
to be distributed to the MP Shareholders.
9
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The Parties acknowledge that Media Planning, S.A. has sold prior to Merger Date
100% of the shares of its subsidiaries Interactive Network, S.L. and Rablin,
S.A. (which includes Acciones Especiales, S.A. and Eventos Deportivos, S.A.),
for which Media Planning, S.A. has been paid a price of 250,609,000 pesetas.
Article 9.- Miscellaneous
9.1.- Determination of New MP
-----------------------------
For the avoidance of doubt, any reference to New MP in the Merger Documents
shall be understood to refer to Media Planning Group S.A. (formerly named
Inversiones y Servicios Publicitarios, S.A.).
9.2.- Merger Date
-----------------
Merger Date is agreed to be the fifth of October of 1999 for all intents and
purposes of the Merger Documents.
9.3.- Martinez-Rovira Family distribution
-----------------------------------------
As mentioned in certain Merger Documents, Invermaro, S.A., and Calle Arcos,
S.L., which were original signatories executors to the Merger Agreement, have
been dissolved on August 9, 1999 and August 27, 1999, respectively. In
consequence, the Martinez-Rovira Family have become full and effective parties
to the Merger Documents, to the extent they are successors in the rights and
obligations of said companies.
9.4.- Adjustments among MP Shareholders
---------------------------------------
The Parties acknowledge and agree that due to the mathematical calculations,
certain small fractions of shares will not have been properly attributed. To
correct this unfair attribution of share ownership, Advertising Antwerpen shall
sell shortly after Merger Date (i) 684 shares in the share capital of New MP at
nominal value to Martinez-Rovira Family and (ii) 1 share in the share capital of
New MP at nominal value to Compania de Cartera e Inversiones.
Article 10.- Additional agreements - Schedule 1
Schedule 1 incorporates additional agreements which, due to their specific
nature, the Parties wish to reflect in a schedule. Schedule 1 is incorporated
into this clause by express reference herein.
Article 11.- Havas International as a party
Havas International (formerly EURO RSCG INTERNATIONAL S.A.) executes this
agreement to acknowledge its contents and for the purposes of compliance with
its obligations under the Undertaking to Transfer and Addendum to the
Contribution Agreement, dated June 29, 1999.
10
<PAGE>
Article 12.- Integration of this agreement
This agreement amends and supplements the Merger Agreement (as subsequently
amended and supplemented), and, whenever applicable, the remaining Merger
Documents and forms an integral part of said Merger Agreement. Except as hereby
expressly amended and supplemented, the Merger Agreement (as subsequently
amended and supplemented) and the remaining Merger Documents remain fully
binding and enforceable in accordance with their terms and conditions.
In witness thereof the Parties execute this agreement in Barcelona on the date
indicated above in seven copies, one for each Party.
Advertising Antwerpen B.V.
/s/ Leopoldo Rodes Castane
--------------------------
By authorised signatory
Cantabro Catalana de Inversiones, S.A.
/s/ Francisco Gonzalez-Robatto Fernandez
----------------------------------------
By authorised signatory
Compania de Cartera e Inversiones, S.A.
/s/ Manuel Esteve Claramunt
---------------------------
By authorised signatory
Deya, S.A.
/s/ Enrique Pinel Lopez
-----------------------
By authorised signatory
Havas Advertising S.A. and Havas Advertising International S.A.
/s/ Alain de Pouzilhac
-----------------------
By authorised signatory
11
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Martinez-Rovira Family
/s/ Jose Martinez-Rovira Vidal
------------------------------
By authorised signatory
Media Planning Group S.A.
/s/ Fernando Rodes Vila
------------------------
By authorised signatory
12
<PAGE>
Schedule I
Additional Agreements
1. Migration France:
Hemisphere Droit migration clients have been included by HA in its contribution
and valuation (Annex I of this amendment and supplemental agreement).
2. Migration Argentina:
Sandra Sabate costs will be shared 50/50 between Media Planning Argentina, S.A.
and HA Group advertising agency in Argentina.
3. Spain:
HA has transferred to Mediapolis Spain 50 million pesetas for the purpose of:
(i)paying 10 million pesetas to New MP in order to cancel a difference in 1998
expenses between Media Planning and the HA Group advertising agency in Spain,
(ii) paying to New MP 10 million pesetas for the two year information service
provided to the company recently incorporated by the former manager of the
Mediapolis Barcelona office, (iii) canceling certain payments from its agencies
for certain accounts pending with Mediapolis Spain, S.A. for the amount of
17,584,923 pesetas, (iv) paying for any cost or expense derived in the future
from the termination of the Infoadex contract.
Any credit left, if any, shall be reimbursed to HA, if any additional cost or
expense is incurred as a result of the termination of the Infoadex contact HA
shall reimbursed New MP.
4. SFM Earn-Out
On January 2001 a 3 million US dollars payment has to be made by SFM due to the
Earn-Out cancellation negotiated by HA, pursuant to clause 1.2.2 a) (viii) of
the Merger Agreement. For this purpose, HA has made and paid a 1,65 million US
dollars capital increase in Havas Inc. On January 1st, 2001, HA will pay in cash
the balance, that is, 1,35 million U.S. Dollars minus any tax-loss carry forward
(originated by the earn-out cost) used by Havas Inc. This payment will be
reimbursed to HA as the tax-loss carry forward (originated by the earn-out cost)
is actually used by Havas Inc.
5. Transfer contribution
Transfer by the Parties of the contribution assets shall be made free of any
taxes and costs to New MP, except the increase in share capital tax of 1% in
Spain due to the increase in share capital.
<PAGE>
Annex I
Audited Migration List 1998
<PAGE>
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COUNTRY NAME FRANCE
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COUNTRY EBITDA [*]
COUNTRY NACP [*]
COUNTRY VALUE [*]
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CLIENT NAME CLIENT FEE CLIENT VALUE
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Pagina 1 de 8
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
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[*] [*] [*]
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[*] [*] [*]
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* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
-----------------------------------------------------------------------------
[*] [*] [*]
[*] [*] [*]
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[*] [*] [*]
[*] [*] [*]
TOTAL WL FRANCE [*] [*]
-----------------------------------------------------------------------------
Pagina 3 de 8
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
COUNTRY NAME UK
COUNTRY CLIENT FEE [*]
COUNTRY EBITDA [*]
COUNTRY NACP [*]
COUNTRY VALUE [*]
CLIENT VALUE RATIO [*] x [*] [*]
-------------------------------------------------------------------------------------------
CLIENT NAME CLIENT FEE CLIENT VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
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[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
TOTAL WL UK [*] [*]
------------------------------------------------------------------------------------------------------
</TABLE>
Pagina 4 de 8
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
COUNTRY NAME USA
COUNTRY CLIENT FEE [*]
COUNTRY EBITDA [*]
COUNTRY NACP [*]
COUNTRY VALUE [*]
CLIENT VALUE RATIO [*] x [*] [*]
-------------------------------------------------------------------------------------------
CLIENT NAME CLIENT FEE CLIENT VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
TOTAL WL USA [*] [*]
-------------------------------------------------------------------------------------------
</TABLE>
Pagina 5 de 8
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
COUNTRY NAME PORTUGAL
COUNTRY CLIENT FEE [*]
COUNTRY EBITDA [*]
COUNTRY NACP [*]
COUNTRY VALUE [*]
CLIENT VALUE RATIO [*] x [*] [*]
-------------------------------------------------------------------------------------------
CLIENT NAME CLIENT FEE CLIENT VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
SUBTOTAL WL PORTUGAL [*] [*]
-------------------------------------------------------------------------------------------
</TABLE>
Pagina 6 de 8
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
COUNTRY NAME HOLLAND
COUNTRY CLIENT FEE [*]
COUNTRY EBITDA [*]
COUNTRY NACP [*]
COUNTRY VALUE [*]
CLIENT VALUE RATIO [*] x [*] [*]
--------------------------------------------------------------------------------------------
CLIENT NAME CLIENT FEE CLIENT VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
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[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
TOTAL WL HOLLAND [*] [*]
--------------------------------------------------------------------------------------------
</TABLE>
Pagina 7 de 8
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
COUNTRY NAME ARGENTINA
COUNTRY CLIENT FEE [*]
COUNTRY EBITDA [*]
COUNTRY NACP [*]
COUNTRY VALUE [*]
CLIENT VALUE RATIO [*] x [*] [*]
------------------------------------------------------------------------------------------
CLIENT NAME CLIENT FEE CLIENT VALUE
------------------------------------------------------------------------------------------
<S> <C> <C>
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*]
TOTAL WL ARGENTINA [*] [*]
------------------------------------------------------------------------------------------
</TABLE>
Pagina 8 de 8
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
EXECUTION COPY
Annex II
Havas Inc. balance sheet
<PAGE>
Havas North America
BALANCE SHEET DECEMBER 31, 1998
Annex II
LIABILITIES AND EQUITY
CURRENT LIABILITIES
CAPITAL SUBSCRIPTION PAYABLE $ 725,000.00
CRED COMM'L FRA $10MM TERM 10,000,000.00
ACCRUED BANK INTEREST 239,378.46
--------------
TOTAL CURRENT LIABILITIES 10,964,378.46
--------------
TOTAL LIABILITIES 10,964,378.46
EQUITY
CLASS A COMMON STOCK 1,000.00
RETAINED EARNINGS (1,000.00)
RETAINED EARNINGS-CURRENT YEAR (767,039.61)
--------------
TOTAL EQUITY (767,039.61)
--------------
TOTAL LIABILITIES AND EQUITY $10,197,338.85
==============
<PAGE>
Havas North America
BALANCE SHEET DECEMBER 31, 1998
Annex II
ASSETS
INTERCOMPANY
DUE FROM EURO RSCG NA $ (301,588.24)
INVESTMENT IN SFM 860,000.00
-------------
TOTAL INTERCOMPANY 558,411.76
--------------
OTHER ASSETS
GOODWILL - SFM 9,865,000.00
ACC/AMORT GOODWILL-SFM (226,072.91)
-------------
TOTAL OTHER ASSETS 9,638,927.09
--------------
TOTAL ASSETS $10,197,338.85
==============
<PAGE>
Havas North America
INCOME STATEMENT
<TABLE>
<CAPTION>
FOR THE 12 PERIODS ENDED DECEMBER 31, 1998
PERIOD TO DATE YEAR TO DATE
------------------------------- -------------------------------
ACTUAL PERCENT ACTUAL PERCENT
<S> <C> <C> <C> <C>
----------- ----------- ----------- -----------
TOTAL REVENUE $ .00 .0% .00 .0
----------- ----------- ----------- -----------
GROSS PROFIT .00 .0 .00 .0
EXPENSES:
FINANCIAL INCOME/EXPENSE 52,258.68 .0 540,966.70 .0
INTEREST EXPENSE - OTHER
----------- ----------- ----------- -----------
TOTAL FINANCIAL INCOME/EXPENSE 52,258.68 .0 540,966.70 .0
DEPR. & AMORTIZATION 5,447.91 .0 226,072.91 .0
AMORTIZATION OF GOODWILL
----------- ----------- ----------- -----------
TOTAL DEP. & AMORTIZATION 5,447.91 .0 226,072.91 .0
----------- ----------- ----------- -----------
TOTAL EXPENSES 57,706.59 .0 767,039.61 .0
----------- ----------- ----------- -----------
NET INCOME FROM OPERATIONS (57,706.59) .0 (767,039.61) .0
----------- ----------- ----------- -----------
EARNINGS BEFORE INCOME TAX (57,706.59) .0 (767,039.61) .0
----------- ----------- ----------- -----------
NET INCOME (LOSS) $(57,706.59) .0% (767,039.61) .0
=========== =========== =========== ===========
</TABLE>
<PAGE>
EXECUTION COPY
Annex III
Societe d'Etude balance sheet
<PAGE>
NOTES ON THE OPERATING ACCOUNT
Note 2
Operating Expenses
-----------------------------------------------------------------------
31.12.98 31.12.97
-----------------------------------------------------------------------
Outside Services 23 248 23 452
Taxes and Contributions 2545 4677
Other Expenses 21 109 0
------------------------------------
46 902 28 129
-----------------------------------------------------------------------
Outside Services Include:
- Legal assistance rendered during the period
- Rent
- Bank Presentations
- Unrecoverable VAT credit
Taxes and Contributions consist of:
- Professional Tax for Fiscal '98
<PAGE>
Schedule III
S.D.P.E.S.
84 Rue de Villiers
92300 Levallois Perret
R.C.S. Nanterre B 402 960 694
BALANCE SHEET on December 31, 1998
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
1998 1997
-----------------------------------------------------------
ASSETS Note Amortization and
to Gross Reserves Net Net
Schedule
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operating Accounts Receivable:
Other Operating Accounts Receivable VAT (1) 0 0 0 16 370
Available: 54 993 0 54 993 59 401
Total Current Assets 54 993 0 54 993 75 771
--------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 54 993 0 54 993 75 771
--------------------------------------------------------------------------------------------------------------------------
(1) Including at less than one year 0 0 16 370
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
S.D.P.E.S - SNC
84 Rue de Villiers
92300 Levallois Perret
R.C.S. Nanterre B 402 960 694
Balance Sheet On December 31, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
1998 1997
------------------------------
LIABILITIES Note Before Distribution
to
Schedule
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Capital 1 100 000 100 000
Result of the Period (45 007) (26 882)
-------------------------------------------------------------------------------------------------
Total Stockholders' Equity 54 993 73 118
-------------------------------------------------------------------------------------------------
Loans and Debts to Credit Institutions
Bank 0 241
Operating and Miscellaneous Debts:
Debts to Suppliers and Related Accounts 0 2 412
-------------------------------------------------------------------------------------------------
Total Debts (3) 0 2 653
-------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 54 993 75 771
(3) Including at less than one year 0 2 653
-------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
S.D.P.E.S
84 Rue de Villiers
92300 Levallois Perret
R.C.S. Nanterre B 402 960 694
STATEMENT OF INCOME - Fiscal 1998
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
Note 1998 1997
to
Schedule
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATING EXPENSES
Other Consumption of the Period (23 248) (23 452)
Taxes, Contributions and Equivalent Payments (2 545) (4 677)
Other Expenses (21 109) 0
---------------------------------------------
Total Operating Expenses 2 (46 902) (28 129)
--------------------------------------------------------------------------------------------------------------------------------
I. OPERATING RESULT (46 902) (28 129)
--------------------------------------------------------------------------------------------------------------------------------
Other Interest and Equivalent Proceeds 1 895 1 247
--------------------------------------------------------------------------------------------------------------------------------
II. FINANCIAL RESULT 1 895 1 247
--------------------------------------------------------------------------------------------------------------------------------
III. CURRENT RESULT BEFORE TAX (45 007) (26 882)
--------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------
LOSS FOR THE PERIOD (45 007) (26 882)
---------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
S.D.P.E.S snc
84 Rue de Villiers
92300 Levallois Perret
R.C.S. Nanterre B 402 960 694
--------------------------------------------------------------------------------
SCHEDULE OF ANNUAL ACCOUNTS
Drawn up on December 31, 1998
All figures appearing in schedule are in francs
--------------------------------------------------------------------------------
ACCOUNTING PRINCIPLES, RULES AND METHODS
The annual accounts are prepared and presented in accordance with the principles
and methods of the 1992 General Accounting Plan.
NOTES ON THE BALANCE SHEET
LIABILITIES
Note 1
Variation in Stockholders' Equity
The capital consists of 1,000 SHARES of 100 F each.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Balance Movements Balance
on Distribution of the period at
12/31/97 12/31/98
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital 100 000 100 000
Result of the Period (26 882) 26 882 (45 007) (45 007)
--------------------------------------------------
73 118 26 882 (45 007) 54 993
--------------------------------------------------------------------------------
</TABLE>
<PAGE>
ANNEX A
-------
The Clients, Commission Rates and Payment Terms
-----------------------------------------------
For Media Planning and Buying
-----------------------------
Schedule of Commission Levels between Euro RSCG Wnek Gosper
-----------------------------------------------------------
and Mediapolis UK as at 1 September 1999
----------------------------------------
[*]
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
-6-
ANNEX A
-------
The Clients, Commission Rates and Payment terms
-----------------------------------------------
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
Client Media Invoicing Mediapolis Income Recovery of WCRS and
Mediapolis Income
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
[*] [*] [*] [*]
----------------------------------------------------------------------------------------------
[*] [*] [*] [*]
----------------------------------------------------------------------------------------------
[*] [*] [*] [*]
----------------------------------------------------------------------------------------------
[*] [*] [*] [*]
----------------------------------------------------------------------------------------------
[*] [*] [*] [*]
----------------------------------------------------------------------------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
-7-
<TABLE>
------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
[*] [*] [*] [*]
------------------------------------------------------------------------------------------------
[*] [*] [*] [*]
------------------------------------------------------------------------------------------------
[*] [*] [*] [*]
------------------------------------------------------------------------------------------------
</TABLE>
Payment Terms
-------------
[*]
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
Schedule "A"
------------
Clients, Commission Percentage and Payment Terms
CLIENT: COMMISSION PERCENTAGE
[*] [*]
[*] [*]
[*] [*]
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
-6-
ANNEX A
-------
The Clients, Commission Rates And Payment Terms
-----------------------------------------------
1 CLIENTS BENJAMENS, VAN DOORN - EURO RSCG
----------------------------------------
[*]
2 CLIENTS THE SALES MACHINE - EURO RSCG (1)
-----------------------------------------
[*]
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
-7-
3 CLIENTS TWO'S COMPANY - EURO RSCG
---------------------------------
[*]
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
-6-
ANNEX A
-------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
Clients Services Rendered Remuneration Payment Terms
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
--------------------------------------------------------------------------------------
TOTAL
--------------------------------------------------------------------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
September 24/th/, 1999
<PAGE>
ANNEX A
-------
The Clients, Commission Rates and Payment terms
-----------------------------------------------
<TABLE>
<CAPTION>
Payment
% COM. Condition
<S> <C> <C>
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
30 September 1999
<PAGE>
ANNEX A
-------
The Clients, Commission Rates and Payment Terms
-----------------------------------------------
October 1*, 1999
<PAGE>
ANNEXE A
<TABLE>
<CAPTION>
------------------------------ ---------------------- -------------------------------------
Clients Lost (L) or Remuneration in %
not active (NA)
------------------------------ ---------------------- --------------------------------------
------------------------------ ---------------------------------------------------------------
<S> <C> <C>
[*] [*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*] [*]
[*] [*]
[*] [*]
[*] [*] [*]
[*]
[*] [*]
[*] [*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*] [*]
[*] [*]
[*] [*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
------------------------------ ---------------------- -----------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
ANNEX A.
<TABLE>
<CAPTION>
----------------------------------- -------------------------------------------
Clients Migration Remuneration in %
Planning Strategy
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
<S> <C> <C>
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
----------------------------------- -------------------------------------------
Total BETC
----------------------------------- -------------------------------------------
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*]
[*] [*] [*]
----------------------------------- -------------------------------------------
Total GBHR
----------------------------------- -------------------------------------------
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
----------------------------------- -------------------------------------------
Total Hemisphere Droit
----------------------------------- -------------------------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
Execution copy
Side Agreement concerning Mexico
THIS AGREEMENT is executed on this 5th, day of October 1999 by and among Havas
Advertising S.A. ("HA") and Media Planning Group S.A., (formerly known as
Inversiones y Servicios Publicitarios, S.A. ("New MP")),
together: the "Parties".
Capitalized terms shall have the meaning ascribed to them in this side
agreement, if defined herein, or the meaning ascribed to them in the Merger
Documents, if defined therein. "Merger Documents" refers to the Merger Agreement
(executed on November 29th, 1999 by and among HA, Advertising Antwerpen B.V.,
Cantabro Catalana de Inversiones, S.A., Compania de Cartera e Inversiones, S.A.,
Deva, S.A., and others regarding the merger of HA Media Business and Media
Planning Media Business) as amended and supplemented, and all Implementation
Agreements as amended supplemented.
1. The Parties acknowledge that migration of the Mexico Media Business has
already occurred and compensation therefore taken into consideration and
factored in the additional contribution mentioned in article 1 of the
supplemental and amendment agreement to the Merger Agreement executed at
the date hereof among the parties to the Merger Documents.
The Migration List Clients of Mexico as defined in clause 1.5.2.6 "Mexico
Adjustments" of the Merger Agreement is attached as Annex 1; Annex 2 lists
the personnel transferred to the relevant Media Planning Subsidiary in
Mexico with their conditions.
2. HA represents and warrants to New MP that:
i) Annex 2 accurately reflects all economic and labour related
liabilities of the transferred personnel;
ii) except as stated in the annexes herein no liabilities will affect the
relevant Media Planning Subsidiary in the future arising from acts,
circumstances or events prior to Merger Date related to the Media
Business transferred.
3. HA guarantees to New MP:
(i) that all Media Business services contracted with the relevant HA
Group advertising agencies in Mexico shall be subcontracted with the
relevant Media Planning Subsidiary.
(ii) the subcontracting agreements reflect and will maintain the agency
fee commission listed for the clients in the migration list. If said
fee commissions are not maintained, HA will pay New MP the difference
between the actual fees and those listed in the migration list
attached as Annex I.
<PAGE>
(iii) all payments effectively due by the HA Group advertising agencies in
Mexico to the relevant Media Planning Subsidiary arising from the
corresponding subcontracting agreement.
This guarantee shall remain in force until each and every HA Group client has
terminated its agreement with the relevant HA Group advertising agency for the
engagement of Media Business services whether as a result of (i) the HA Group
client having entered directly into an agreement with the relevant Media
Planning Subsidiary or any company to be designated by the aforementioned Media
Planning Subsidiary for the engagement of Media Business services or (ii) the
termination of its agreement with the relevant HA Group advertising agency for
other reasons.
This side agreement shall form an integral part of the Merger Documents to all
its intents and purposes, and shall be governed by all the applicable provisions
therefrom.
/s/ Alain de Pouzilhac /s/ Fernando Rodes
---------------------------------- ----------------------------------
Havas Advertising S.A. Media Planning Group S.A.
Represented by Alain de Pouzilhac Represented by Fernando Rodes
<PAGE>
ANNEX 1 Migration List Clients in Mexico
ANNEX 2 Personnel transferred to Media Planning, S.A. de C.V.
<PAGE>
ANNEX I
<TABLE>
<CAPTION>
Tipo $/Peso = 9,5
BETANCOURT BARBA EURO 1.999
P&L MEDIA (E) $US 000' %
<S> <C> <C>
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BILLINGS [*] [*]
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GROSS INCOME [*] [*]
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
ANNEX II
(Mexican Pesos)
<TABLE>
<CAPTION>
Last Name First Name Salary Christmas Bonus Paid Vacation Bonus 2% Payroll IMSS SAR Infonavit TOTAL COST
------------------------------- --------------- ------------- ----- ---------- ---- --- --------- ==========
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
[*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*]
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------ --------------- ------------- ----- ---------- ---- --- --------- ==========
[*] [*] [*] [*] [*] [*] [*] [*] [*]
==========
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
