Sample Business Contracts


Severance Agreement - Interpublic Group of Companies Inc. and Philip H. Geier Jr.


                                               April 4, 2000


Mr. Philip H. Geier, Jr.
Chairman & CEO
The Interpublic Group of Companies, Inc.
1271 Avenue of the Americas
New York, NY 10020

                                                        PERSONAL & CONFIDENTIAL
                                                        -----------------------

Dear Phil:

         The purpose of this letter is to detail certain retirement arrangements
the Corporation  will provide you with on the date of your eventual  retirement.
In addition,  the  following  considerations  will be committed to you as of the
date you sign this letter.

         1) EXECUTIVE SPECIAL BENEFIT ARRANGEMENT:INCOME REPLACEMENT

                  You will be eligible to receive an Executive  Special  Benefit
                  Arrangement  Income  Replacement   (ESBA:IR)  of  $1,200,000/A
                  payable upon retirement for 15 years.

         2) POST RETIREMENT ALLOWANCES

                  Since it is our  understanding  that you will  resign from the
                  IPG Board upon your  retirement,  the following  items will be
                  provided to you at Company expense:

                    a)   Company  car and driver for a period of five years from
                         date of retirement with survivorship  rights. A new car
                         would be provided on a three year interval from date of
                         purchase of the last car.

                    b)   Appropriate  office  facilities and support staff would
                         be provided for as long as you desire but not to exceed
                         five years.

                    c)   This is to acknowledge  that you will have priority use
                         indefinitely  of the U.S. Open box seats that have been
                         supported by the Company.

         3) EMPLOYMENT AGREEMENT EXTENSION

                  The Compensation  Committee will approve a six month extension
                  of your current Employment  Agreement through January 1, 2002.
                  Thereafter,   you  will  be  offered  a  two  year  employment
                  consultancy   agreement  at   $24,000/A.   The  extension  and
                  consultancy  agreement  will  however  provide for a life-time
                  non-compete  restriction  prohibiting you from working for any
                  other company in the advertising industry.

         Please indicate your acceptance of the above recommendations by signing
this letter and return it to me. Thank you.

                                               Sincerely,

                                                        /s/ Leif H. Olsen
                                                 -------------------------------
                                                          Leif H. Olsen
                                                 Chairman/Compensation Committee

Agreed:


  /s/ Philip H. Geier, Jr.
-----------------------------
    Philip H. Geier, Jr.



April 3, 2000
Date



cc: Members of Compensation Committee

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