Exhibit 10.3
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OMNICOM GROUP INC.,
as Guarantor
GUARANTY
Dated as of April 30, 1999
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TABLE OF CONTENTS(1)
Paragraph Page
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1. The Guaranty............................................................1
2. Waiver of Notice, Etc...................................................1
3. Waiver of Suretyship Defenses...........................................2
4. Obligations Unconditional...............................................2
5. Subrogation.............................................................3
6. Representations and Warranties..........................................3
(a) Corporate Existence..............................................3
(b) Action...........................................................3
(c) No Breach........................................................4
(d) Approvals........................................................4
(e) Financial Condition..............................................4
(f) Financial Disclosure.............................................4
(g) Litigation.......................................................4
(h) True and Complete Disclosure.....................................4
(i) Taxes............................................................5
(j) Capitalization...................................................5
(k) Environmental Matters............................................5
(l) Subsidiaries, Etc................................................5
(m) Investment Company Act...........................................6
(n) Public Utility Holding Company Act...............................6
(o) Ownership of Borrowers...........................................6
(p) Ownership of Intellectual Property...............................6
(q) Margin Stock.....................................................6
7. Covenants...............................................................7
(a) Financial Statements, Etc........................................7
(b) Bookkeeping......................................................8
(c) Maintenance of Property; Insurance...............................8
(d) Existence, Etc...................................................8
(e) Compliance with Applicable Laws..................................8
(f) ERISA............................................................9
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(1) This Table of Contents is provided for convenience only and is not a part
of the attached Guaranty.
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(g) Fiscal Year, Etc.................................................9
(h) Lines of Business................................................9
(i) Liens............................................................9
(j) Prohibition on Fundamental Changes..............................10
(k) Leases..........................................................11
(l) Indebtedness....................................................11
(m) Investments.....................................................12
(n) Transactions with Affiliates....................................13
(o) Total Consolidated Indebtedness to Total Consolidated
Capitalization Ratio..........................................13
(p) Debt to Cash Flow Ratio.........................................13
(q) Certain Obligations Respecting Subsidiaries.....................13
8. Definitions...........................................................13
9. Continuing Guaranty, Etc..............................................17
10. Successors and Assigns................................................17
11. Amendments, Etc.......................................................17
12. Receipt of Credit Agreement...........................................17
13. Setoff................................................................17
14. Notices...............................................................18
15. Reinstatement.........................................................18
16. Statute of Limitations................................................18
17. Generally Accepted Accounting Principles..............................18
18. Governing Law, Submission to Jurisdiction.............................18
19. Judgment Currency.....................................................19
Schedule I - Subsidiaries of the Guarantor as of March 29, 1999
Schedule II - Existing Indebtedness of Subsidiaries
Schedule III - Types of Indebtedness
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GUARANTY, dated as of April 30, 1999, made by OMNICOM GROUP INC., a
corporation organized and existing under the laws of New York (the "Guarantor").
Except as otherwise defined herein, terms used herein and defined in the Credit
Agreement (as hereinafter defined), if not otherwise defined herein, shall be
used herein as so defined.
W I T N E S S E T H :
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WHEREAS, Omnicom Finance Inc. and Omnicom Finance Limited (the
"Borrowers"), various financial institutions (the "Banks"), Citibank, N.A., as
Administrative Agent (the "Administrative Agent") (the Banks and the
Administrative Agent being hereinafter collectively referred to as the
"Guaranteed Parties"), The Bank of Nova Scotia, as Documentation Agent, and
Istituto Bancario San Paolo Di Torino Istituto Mobiliare Italiano S.p.A., as
Syndication Agent, have entered into a 364-Day Credit Agreement, dated as of
April 30, 1999 (as modified, supplemented or amended from time to time, the
"Credit Agreement"), providing for the making of Loans in Dollars as
contemplated therein;
WHEREAS, it is a condition precedent to the effectiveness of the Credit
Agreement referred to above that the Guaranty be executed and delivered in the
form hereof;
WHEREAS, it is a condition to the making of Loans under the Credit
Agreement that the Guarantor shall have executed and delivered this Guaranty;
and
WHEREAS, the Guarantor will obtain benefits as a result of the Loans made
to the Borrowers under the Credit Agreement and, accordingly, desires to execute
and deliver this Guaranty in order to satisfy the conditions described in the
two immediately preceding paragraphs;
NOW, THEREFORE, in consideration of the foregoing and other benefits
accruing to the Guarantor, the receipt and sufficiency of which are hereby
acknowledged, the Guarantor hereby makes the following representations and
warranties to the Guaranteed Parties and hereby covenants and agrees with the
Guaranteed Parties as follows:
1. The Guaranty. The Guarantor irrevocably and unconditionally guarantees
the full and prompt payment when due (whether by acceleration or otherwise) of
the principal of and interest on any Note issued under the Credit Agreement and
of all other obligations and liabilities (including, without limitation,
indemnities, fees and interest thereon) of the Borrowers now existing or
hereafter incurred under, arising out of or in connection with the Credit
Agreement and the due performance and compliance with the terms of the Credit
Agreement and the Notes by the Borrowers (all such principal, interest,
obligations and liabilities, collectively, the "Guaranteed Obligations"). All
payments by the Guarantor under this Guaranty, to the extent owing to the Banks
or the Administrative Agent, shall be made on the same basis as payments by the
Borrowers under Sections 5.03 and 5.04 of the Credit Agreement.
2. Waiver of Notice, Etc. The Guarantor hereby waives notice of acceptance
of this Guaranty and notice of any liability to which it may apply, and waives
presentment, demand of payment, protest, notice of dishonor or nonpayment of any
such liability, suit or taking of other action by any Guaranteed Party against,
and any other notice to, any party liable thereon (including the Guarantor or
any other guarantor).
3. Waiver of Suretyship Defenses. Any Guaranteed Party may at any time and
from time to time without the consent of, or notice to the Guarantor, without
incurring responsibility to the Guarantor, without impairing or releasing the
obligations of the Guarantor hereunder, upon or without any terms or conditions
and in whole or in part:
(a) change the manner, place or terms of payment of, and/or change or
extend the time of payment of, renew or alter, any of the Guaranteed
Obligations, any security therefor, or any liability incurred directly or
indirectly in respect thereof, and the guaranty herein made shall apply to
the Guaranteed Obligations as so changed, extended, renewed or altered;
(b) sell, exchange, release, surrender, realize upon or otherwise deal
with in any manner and in any order any property by whomsoever at any time
pledged or mortgaged to secure, or howsoever securing, the Guaranteed
Obligations or any liabilities (including any of those hereunder) incurred
directly or indirectly in respect thereof or hereof, and/or any offset
thereagainst;
(c) exercise or refrain from exercising any rights against the Borrowers
or others or otherwise act or refrain from acting;
(d) settle or compromise any of the Guaranteed Obligations, any security
therefor or any liability (including any of those hereunder) incurred
directly or indirectly in respect thereof or hereof, and may subordinate
the payment of all or any part thereof to the payment of any liability
(whether due or not) of the Borrowers to creditors of the Borrowers other
than the Guaranteed Parties and the Guarantor;
(e) apply any sums by whomsoever paid or howsoever realized to any
liability or liabilities of the Borrowers to the Guaranteed Parties
regardless of what liability or liabilities of the Borrowers remain unpaid;
(f) consent to or waive any breach of, or any act, omission or default
under, any of the Credit Documents, or otherwise amend, modify or
supplement any of the Credit Documents or any of such other instruments or
agreements; and/or
(g) act or fail to act in any manner referred to in this Guaranty which
may deprive the Guarantor of its right to subrogation against the Borrowers
to recover full indemnity for any payments made pursuant to this Guaranty.
4. Obligations Unconditional. The obligations of the Guarantor under this
Guaranty are absolute and unconditional and shall remain in full force and
effect without regard to, and shall not be released, suspended, discharged,
terminated or otherwise affected by, any circumstance or occurrence whatsoever,
including, without limitation: (a) any action or inaction by any Guaranteed
Party as contemplated in Section 3 of this Guaranty; (b) any invalidity,
irregularity or unenforceability of all or part of the Guaranteed Obligations or
of any security therefor or (c) to the fullest extent permitted by law, any
other circumstance or occurrence that would or might otherwise release, suspend,
discharge, terminate or otherwise affect the obligations of a surety. This
Guaranty is a primary obligation of the Guarantor, and is a guaranty of payment,
not merely collection.
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5. Subrogation. (a) The Guarantor hereby waives all rights of
subrogation which it may at any time otherwise have as a result of this
Guaranty (whether contractual, under Section 509 of the Bankruptcy Code, or
otherwise) to the claims of the Guaranteed Parties against the Borrowers or
any other guarantor of the Guaranteed Obligations (collectively, the "Other
Parties") and all contractual, statutory or common law rights of
reimbursement, contribution or indemnity from any Other Party which it may
at any time otherwise have as a result of this Guaranty. The Guarantor
hereby further waives any right to enforce any other remedy which the
Guaranteed Parties now have or may hereafter have against any Other Party,
any endorser or any other guarantor of all or any part of the indebtedness
of the Borrowers and any benefit of, and any right to participate in, any
security or collateral given to or for the benefit of the Guaranteed
Parties to secure payment of the indebtedness of the Borrowers. The
Guarantor also waives all claims (as such term is defined in the Bankruptcy
Code) it may at any time otherwise have against any Other Party arising
from any transaction whatsoever, including, without limitation, its right
to assert or enforce any such claims.
(b) Notwithstanding the provisions of the preceding clause (a), the
Guarantor shall have and be entitled to (i) all rights of subrogation
otherwise provided by law in respect of any payment it may make or be
obligated to make under this Guaranty and (ii) all claims (as defined in
the Bankruptcy Code) it would have against any Other Party in the absence
of the preceding clause (a), and to assert and enforce same, provided that
no Default or Event of Default of the type described in Section 10.05 of
the Credit Agreement with respect to the respective Other Party exists at
the time of such assertion and enforcement.
6. Representations and Warranties. In order to induce the Banks to make
the Loans, the Guarantor makes the following representations, warranties and
agreements:
(a) Corporate Existence. Each of the Guarantor and its Subsidiaries (i)
is a duly organized and validly existing corporation in good standing under
the laws of the jurisdiction of its incorporation, (ii) has the power and
authority to own its property and assets and to transact the business in
which it is engaged and (iii) is duly qualified as a foreign corporation
and in good standing in each jurisdiction where the ownership, leasing or
operation of property or the conduct of its business requires such
qualification, except where the failure to be so qualified could not have a
material adverse effect on the business, operations, property, assets,
condition (financial or otherwise) or (to the knowledge of the Guarantor)
prospects of the Guarantor or of the Guarantor and its Subsidiaries taken
as a whole.
(b) Action. The Guarantor has the corporate power to execute, deliver
and perform the terms and provisions of this Guaranty and has taken all
necessary corporate action to authorize the execution, delivery and
performance by it of this Guaranty. The Guarantor has duly executed and
delivered this Guaranty, and this Guaranty constitutes its legal, valid and
binding obligation enforceable in accordance with its terms except as the
enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws affecting creditors' rights generally
and by general equitable principles (regardless of whether the issue of
enforceability is considered in a proceeding in equity or at law).
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(c) No Breach. Neither the execution, delivery or performance by the
Guarantor of this Guaranty, nor compliance by it with the terms and
provisions hereof, (i) will contravene any provision of any law, statute,
rule or regulation or any order, writ, injunction or decree of any court or
governmental instrumentality, (ii) will conflict or be inconsistent with or
result in any breach of any of the terms, covenants, conditions or
provisions of, or constitute a default under, any indenture, mortgage, deed
of trust, credit agreement, loan agreement or any other agreement, contract
or instrument to which the Guarantor or any of its Subsidiaries is a party
or by which it or any of its property or assets is bound or to which it may
be subject or (iii) will violate any provision of the Certificate of
Incorporation or By-Laws of the Guarantor or any of its Subsidiaries.
(d) Approvals. No order, consent, approval, license, authorization or
validation of, or filing, recording or registration with (except as have
been obtained or made prior to the date hereof), or exemption by, any
governmental or public body or authority, or any subdivision thereof, is
required to authorize, or is required in connection with, (i) the
execution, delivery and performance of this Guaranty or (ii) the legality,
validity, binding effect or enforceability of this Guaranty.
(e) Financial Condition. The consolidated statements of financial
condition of the Guarantor and its Subsidiaries at December 31, 1998 and
the related consolidated statements of income and retained earnings and
cash flow of the Guarantor and its Subsidiaries for the fiscal year ended
on such date and heretofore furnished to the Banks present fairly, in all
material respects, the consolidated financial condition of the Guarantor
and its Subsidiaries at the date of such statements of financial condition
and the consolidated results of the operations of the Guarantor and its
Subsidiaries for such fiscal year. All such financial statements have been
prepared in accordance with generally accepted accounting principles and
practices consistently applied. From December 31, 1998 through the date
hereof, there has been no material adverse change in the business,
operations, property, assets, condition (financial or otherwise) or (to the
knowledge of the Guarantor) prospects of the Guarantor or of the Guarantor
and its Subsidiaries taken as a whole.
(f) Financial Disclosure. Except as fully reflected in the financial
statements delivered pursuant to the preceding clause (e), there were as of
the date hereof no liabilities or obligations with respect to the Guarantor
or any of its Subsidiaries of any nature whatsoever (whether absolute,
accrued, contingent or otherwise and whether or not due) which, either
individually or in aggregate, would be materially adverse to the Guarantor
or to the Guarantor and its Subsidiaries taken as a whole.
(g) Litigation. There are no actions, suits or proceedings pending or,
to the best knowledge of the Guarantor, threatened (i) with respect to any
Credit Document or (ii) that are reasonably likely to materially and
adversely affect the business, operations, property, assets, condition
(financial or otherwise) or (to the knowledge of the Guarantor) prospects
of the Guarantor or of the Guarantor and its Subsidiaries taken as a whole.
(h) True and Complete Disclosure. All factual information (taken as a
whole) heretofore or contemporaneously furnished by or on behalf of the
Guarantor in writing to
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any Bank (including, without limitation, all information contained herein)
for purposes of or in connection with this Guaranty or any transaction
contemplated herein is, and all other such factual information (taken as a
whole) hereafter furnished by or on behalf of the Guarantor in writing to
any Bank will be, true and accurate in all material respects on the date as
of which such information is dated or certified and does not omit to state
any fact necessary to make such information (taken as a whole) not
misleading in any material respect at such time in light of the
circumstances under which such information was provided.
(i) Taxes. Each of the Guarantor and its Subsidiaries has filed all tax
returns required to be filed (taking into account all valid extensions) by
it and has paid all income taxes payable by it which have become due
pursuant to such tax returns and all other taxes and assessments payable by
it which have become due, other than those not yet delinquent and except
for those contested in good faith and for which adequate reserves have been
established. Each of the Guarantor and its Subsidiaries has paid, or has
provided adequate reserves (in the good faith judgment of the management of
the Guarantor) for the payment of, all federal and state income taxes
applicable for all prior fiscal years and for the current fiscal year to
the last day of the fiscal quarter immediately preceding the date hereof.
(j) Capitalization. As of December 31, 1998, the authorized capital
stock of the Guarantor consisted of (i) 300,000,000 shares of common stock,
$.50 par value per share, of which 168,593,398 shares were issued and
outstanding and (ii) 7,500,000 shares of preferred stock, $1.00 par value
per share, none of which shares were issued and outstanding. All such
outstanding shares have been duly and validly issued, are fully paid and
non-assessable. Other than (x) certain options to purchase 7,190,800 shares
of common stock of the Guarantor and performance units payable in cash
and/or common stock in the discretion of the Compensation Committee of the
Board of Directors of the Guarantor, (y) the Guarantor's 4-1/4% Convertible
Subordinated Debentures due 2007 and 2-1/4% Convertible Subordinated
Debentures due 2013, and (z) shares of common stock issuable under certain
acquisition agreements to which the Guarantor is a party, the Guarantor
does not have outstanding any securities convertible into or exchangeable
for its capital stock or outstanding any rights to subscribe for or to
purchase, or any options for the purchase of, or any agreements providing
for the issuance (contingent or otherwise) of, or any calls, commitments or
claims of any character relating to, its capital stock.
(k) Environmental Matters. Each of the Guarantor and its Subsidiaries is
in compliance with all applicable statutes, regulations and orders of, and
all applicable restrictions imposed by, all governmental bodies, domestic
or foreign, in respect of the conduct of its business and the ownership of
its property (including applicable statutes, regulations, orders and
restrictions relating to environmental standards and controls), except such
noncompliances as would not, in the aggregate, have a material adverse
effect on the business, operations, property, assets, condition (financial
or otherwise) or (to the knowledge of the Guarantor) prospects of the
Guarantor or of the Guarantor and its Subsidiaries taken as a whole.
(l) Subsidiaries, Etc. Schedule I correctly sets forth the name of each
Subsidiary of the Guarantor, the percentage ownership (direct and indirect)
of the Guarantor in the
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voting securities of each Subsidiary and also identifies the direct owner
thereof, in each case as of March 29, 1999.
(m) Investment Company Act. Neither the Guarantor nor any of its
Subsidiaries is an "investment company" within the meaning of the
Investment Company Act of 1940, as amended.
(n) Public Utility Holding Company Act. Neither the Guarantor nor OFI is
a "holding company," or a "subsidiary company" of a "holding company," or
an "affiliate" of a "holding company" or a "subsidiary company" of a
"holding company" within the meaning of the Public Utility Holding Company
Act of 1935, as amended.
(o) Ownership of Borrowers. The Guarantor owns all of the capital stock
of OFI and Diversified Agency Services Limited ("DASL"), and DASL owns all
of the capital stock of OFL.
(p) Ownership of Intellectual Property. Each of the Guarantor and its
Subsidiaries owns all the patents, trademarks, permits, service marks,
trade names, copyrights, licenses, franchises and formulas, or rights with
respect to the foregoing, and has obtained assignments of all leases and
other rights of whatever nature, necessary for the present conduct of its
business, without any known conflict with the rights of others which, or
the failure to obtain which, as the case may be, would result in a material
adverse effect on the business, operations, property, assets, condition
(financial or otherwise) or (to the knowledge of the Guarantor) prospects
of the Guarantor or of the Guarantor and its Subsidiaries taken as a whole.
(q) Margin Stock. All proceeds of each Loan shall be used by each
Borrower for general corporate purposes, including the repayment of
maturing Commercial Paper of such Borrower and acquisitions; provided that
no part of the proceeds of any Loan will be used by the Borrowers to
purchase or carry any Margin Stock or to extend credit to others for the
purpose of purchasing or carrying any Margin Stock in violation of
Regulation T, U or X of the Board of Governors of the Federal Reserve
Board. Not more than 25% of the value of the assets of the Guarantor or the
Guarantor and its Subsidiaries subject to the restrictions contained in
Section 7 of this Guaranty constitute Margin Stock and, at the time of each
Borrowing, not more than 25% of the value of the assets of the Guarantor or
the Guarantor and its Subsidiaries subject to the restrictions contained in
Section 7 of this Guaranty will constitute Margin Stock. Notwithstanding
the foregoing provisions of this Section 6(q) neither the Guarantor nor any
of its Subsidiaries (including, without limitation, the Borrowers) will use
the proceeds of any Loan to purchase the capital stock of any corporation
in a transaction, or as part of a series of transactions, (i) the purpose
of which is, at the time of any such purchase, to acquire control of such
corporation or (ii) the result of which is the ownership by the Guarantor
and its Subsidiaries (including, without limitation, the Borrowers) of 10%
or more of the capital stock of such corporation, in either case if the
Board of Directors of such corporation has publicly announced its
opposition to such transaction.
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7. Covenants. The Guarantor hereby covenants and agrees that on and after
the date hereof and until the termination of the Total Commitment and the
repayment in full of the Loans and Notes, together with interest, fees and all
other Obligations incurred under the Credit Agreement:
(a) Financial Statements, Etc. The Guarantor will furnish to each Bank:
(i) within 50 days after the close of each quarterly accounting
period in each fiscal year of the Guarantor (other than the fourth fiscal
quarterly accounting period), the consolidated statements of financial
condition of the Guarantor and its Subsidiaries as at the end of such
quarterly period and the related consolidated statements of income for
such quarterly period and of cash flow for the elapsed portion of the
fiscal year ended with the last day of such quarterly period, in each
case setting forth comparative figures for the related periods in the
prior fiscal year (or for the last day of the respective fiscal quarter
in the prior fiscal year in the case of the balance sheet), all of which
shall be certified by the chief financial officer of the Guarantor,
subject to normal year-end adjustments;
(ii) within 105 days after the close of each fiscal year of the
Guarantor, the consolidated statements of financial condition of the
Guarantor and its Subsidiaries as at the end of such fiscal year and the
related consolidated statements of income and retained earnings and
statements of cash flow for such fiscal year, in each case setting forth
comparative figures for the preceding fiscal year and certified by
independent certified public accountants of recognized national standing
reasonably acceptable to the Required Banks;
(iii) at the time of the delivery of the financial statements
provided for in clauses (i) and (ii), a certificate of the chief
financial officer of the Guarantor to the effect that, to the best of his
knowledge, no Default or Event of Default has occurred and is continuing
or, if any Default or Event of Default has occurred and is continuing,
specifying the nature and extent thereof, which certificate shall set
forth the calculations required to establish whether the Guarantor was in
compliance with the provisions of clauses (o) and (p) of this Section 7,
inclusive, at the end of such fiscal quarter or year, as the case may be;
(iv) promptly, and in any event within three Business Days after
an officer of the Guarantor obtains knowledge thereof, notice of (x) the
occurrence of any event which constitutes a Default or Event of Default,
(y) any litigation or governmental proceeding pending (a) against the
Guarantor or any of its Subsidiaries which could materially and adversely
affect the business, operations, property, assets, condition (financial
or otherwise) or (to the knowledge of the Guarantor) prospects of the
Guarantor or the Guarantor and its Subsidiaries taken as a whole or (b)
with respect to any Credit Document and (z) any other event which is
likely to materially and adversely affect the business, operations,
property, assets, condition (financial or otherwise) or (to the knowledge
of the Guarantor) prospects of the Guarantor or the Guarantor and its
Subsidiaries taken as a whole;
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(v) promptly, copies of all financial information, proxy materials
and other information and reports, if any, which the Guarantor shall file
with the SEC; and
(vi) from time to time, such other information or documents
(financial or otherwise) as any Bank may reasonably request, other than
consolidating financial statements of Subsidiaries and Affiliates.
(b) Bookkeeping. The Guarantor will, and will cause each of its
Subsidiaries to, keep proper books of record and account in which full, true and
correct entries in conformity with generally accepted accounting principles and
all requirements of law shall be made of all dealings and transactions in
relation to its business and activities. The Guarantor will, and will cause each
of its Subsidiaries to, permit officers and designated representatives of the
Administrative Agent or any Bank to visit and inspect, under guidance of
officers of the Guarantor or such Subsidiary, any of the properties of the
Guarantor or such Subsidiary, and to examine the books of record and account of
the Guarantor or such Subsidiary (including, without limitation, consolidating
financial statements of Subsidiaries and Affiliates) and discuss the affairs,
finances and accounts of the Guarantor or such Subsidiary with, and be advised
as to the same by, its and their officers, all at such reasonable times and
intervals and to such reasonable extent as the Administrative Agent or such Bank
may request.
(c) Maintenance of Property; Insurance. The Guarantor will, and will cause
each of its Subsidiaries to, (i) keep all property useful and necessary in its
business in good working order and condition (ordinary wear and tear excepted),
(ii) maintain with financially sound and reputable insurance companies insurance
on its property in at least such amounts and against at least such risks as are
usually insured against in the same general area by companies engaged in the
same or a similar business, and (iii) furnish to each Bank, upon written
request, full information as to the insurance carried.
(d) Existence, Etc. The Guarantor will, and will cause each of its
Subsidiaries to, do or cause to be done, all things necessary to preserve and
keep in full force and effect its existence and its material rights, franchises,
licenses and patents; provided, however, that nothing in this clause (d) shall
prevent (i) the withdrawal by the Guarantor or any of its Subsidiaries of its
qualification as a foreign corporation in any jurisdiction where such withdrawal
could not have a material adverse effect on the business, operations, property,
assets, condition (financial or otherwise) or (to the knowledge of the
Guarantor) prospects of the Guarantor or the Guarantor and its Subsidiaries
taken as a whole or (ii) any transaction permitted by Section 7(j) of this
Guaranty. The Guarantor will, and will cause each of its Subsidiaries to, pay
all taxes and assessments payable by it which have become due, other than those
not yet delinquent and except for those contested in good faith and for which
adequate reserves have been established.
(e) Compliance with Applicable Laws. The Guarantor will, and will cause
each of its Subsidiaries to, comply with all applicable statutes, regulations
and orders of, and all applicable restrictions imposed by, all governmental
bodies, domestic or foreign, in respect of the conduct of its business and the
ownership of its property (including applicable statutes, regulations, orders
and restrictions relating to environmental standards and controls), except such
noncompliances as could not, in the aggregate, have a material adverse effect on
the business, operations, property, assets,
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condition (financial or otherwise) or (to the knowledge of the Guarantor)
prospects of the Guarantor or of the Guarantor and its Subsidiaries taken as a
whole.
(f) ERISA. As soon as possible and, in any event, within 10 days after the
Guarantor or any of its Subsidiaries or ERISA Affiliates knows or has reason to
know any of the following, the Guarantor will deliver to each of the Banks a
certificate of the chief financial officer of the Guarantor setting forth
details as to such occurrence and such action, if any, which the Guarantor, such
Subsidiary or such ERISA Affiliate is required or proposes to take, together
with any notices required or proposed to be given to or filed with or by the
Guarantor, the Subsidiary, the ERISA Affiliate, the PBGC, a Plan participant or
the Plan Administrator with respect thereto: that a Reportable Event has
occurred, that an accumulated funding deficiency has been incurred or an
application may be or has been made to the Secretary of the Treasury for a
waiver or modification of the minimum funding standard (including any required
installment payments) or an extension of any amortization period under Section
412 of the Code with respect to a Plan, that a Plan has been or may be
terminated via a "distress termination" as referred to in Section 4041(c) of
ERISA, reorganized, partitioned or declared insolvent under Title IV of ERISA,
that a Plan has an Unfunded Current Liability giving rise to a Lien under ERISA,
that proceedings may be or have been instituted by the PBGC to terminate a Plan,
that a proceeding has been instituted pursuant to Section 515 of ERISA to
collect a delinquent contribution to a Plan, or that the Guarantor, any of its
Subsidiaries or ERISA Affiliates will or may incur any liability (including any
contingent or secondary liability) to or on account of the termination of or
withdrawal from a Plan under Section 4062, 4063, 4064, 4201 or 4204 of ERISA. In
addition to any certificates or notices delivered to the Banks pursuant to the
first sentence hereof, copies of notices received by the Guarantor or any of its
Subsidiaries required to be delivered to the Banks hereunder shall be delivered
to the Banks no later than 10 days after the later of the date such notice has
been filed with the Internal Revenue Service or the PBGC, given to Plan
participants or received by the Guarantor or such Subsidiary.
(g) Fiscal Year, Etc. The Guarantor shall cause (i) each of its, and each
of its Designated Subsidiary's, fiscal years to end on December 31 and (ii) each
of its, and each of its Designated Subsidiary's, fiscal quarters to end on March
31, June 30, September 30 and December 31.
(h) Lines of Business. The Guarantor will not, and will not permit any of
its Subsidiaries to, engage (directly or indirectly) in any business other than
the lines of business in which it is engaged on the date hereof and any other
reasonably related businesses or businesses reasonably incidental thereto.
(i) Liens. The Guarantor will not, and will not permit any of its
Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with
respect to any property or assets (real or personal, tangible or intangible) of
the Guarantor or any of its Subsidiaries, whether now owned or hereafter
acquired, provided that the provisions of this clause (i) shall not prevent the
creation, incurrence, assumption or existence of:
(i) Liens for taxes not yet due, or Liens for taxes being
contested in good faith and by appropriate proceedings for which adequate
reserves have been established;
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(ii) Liens in respect of property or assets of the Guarantor or
any of its Subsidiaries imposed by law, which were incurred in the
ordinary course of business, such as carriers', warehousemen's and
mechanics' liens and other similar Liens arising in the ordinary course
of business and (x) which do not in the aggregate materially detract from
the value of such property or assets or materially impair the use thereof
in the operation of the business of the Guarantor or any of its
Subsidiaries or (y) which are being contested in good faith by
appropriate proceedings, which proceedings have the effect of preventing
the forfeiture or sale of the property or assets subject to any such
Lien;
(iii) Liens created for the benefit of the Administrative Agent
and the Banks;
(iv) pledges or deposits in connection with worker's compensation,
unemployment insurance and other social security legislation;
(v) easements, rights-of-way and other similar Liens on, over or
in respect of any property of the Guarantor or any of its Subsidiaries
which do not individually or in the aggregate materially impair the use
or value of the property or assets subject thereto;
(vi) purchase money mortgages or other Liens on property acquired
after the date hereof by the Guarantor or any of its Subsidiaries to
secure the purchase price of such property (or to secure indebtedness
incurred solely for the purpose of financing the acquisition of such
property), or Liens on any such property at the time of the acquisition
of such property by the Guarantor or any of its Subsidiaries, whether or
not assumed, provided that (x) the Indebtedness secured by each such Lien
shall not exceed the cost of such property to the Guarantor or such
Subsidiary or the fair value thereof at the time of the acquisition
thereof, as the case may be, whichever is less, (y) each such Lien shall
apply and attach only to the property originally subject thereto and
fixed improvements thereon or accessions thereto, and (z) the principal
amount of Indebtedness at any time outstanding and secured by Liens
permitted by this clause (vi) of this Section 7(i) shall not in the
aggregate for the Guarantor and its Subsidiaries exceed, when aggregated
together with the Indebtedness secured by Liens permitted by clause (vii)
below, 1.75% of Consolidated Adjusted Net Worth at such time;
(vii) [Intentionally Omitted]
(viii) Liens securing Indebtedness permitted by Section
7(l)(viii); and
(ix) Liens on assets sold by the Guarantor or any of its
Subsidiaries and leased back by the Guarantor or such Subsidiary, so long
as the aggregate fair value of assets so sold after the date hereof
pursuant to this clause (ix) shall not exceed 3.5% of Consolidated
Adjusted Net Worth at such time.
(j) Prohibition on Fundamental Changes. The Guarantor will not, and will
not permit any of its Subsidiaries to, wind up, liquidate or dissolve its
affairs or enter into any
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transaction of merger or consolidation, or convey, sell, lease or otherwise
dispose of (or agree to do any of the foregoing at any future time) all or any
substantial part of its property or assets, except that: (i) any Subsidiary of
the Guarantor (other than the Borrowers) may do any of the foregoing in any
fiscal year (the "Current Year") of the Guarantor so long as (x) the revenues of
such Subsidiary for the then most recently ended fiscal year (the "Prior Year"),
when added to the revenues for the Prior Year of all other Subsidiaries that
have entered into transactions permitted by this clause (i) during the Current
Year, do not exceed 15% of the revenues of the Guarantor and its Subsidiaries
for the Prior Year and (y) the aggregate of (A) the revenues of such Subsidiary
for the Prior Year, plus (B) with respect to each Subsidiary which consummated a
transaction pursuant to clause (x) in the Current Year or the four immediately
preceding fiscal years, the revenues of such Subsidiary for the year prior to
the year in which the transaction was consummated, does not exceed 40% of the
revenues of the Guarantor and its Subsidiaries for the Prior Year (for purposes
hereof the year ending December 31, 1998 shall be the first such preceding
fiscal year, and the actual number of such preceding fiscal years shall be used
until such time as there are four preceding fiscal years), (ii) Subsidiaries of
the Guarantor (other than the Borrowers) may convey, sell, lease or otherwise
dispose of all or any part of its property or assets to the Guarantor or to
other Subsidiaries (including, without limitation, by way of winding-up,
liquidation or dissolution), (iii) any Wholly-Owned Subsidiary of the Guarantor
(other than the Borrowers) may merge into the Guarantor or another Wholly-Owned
Subsidiary, (iv) the Guarantor or any Wholly-Owned Subsidiary may enter into a
merger transaction if (w) it is the surviving entity, (x) no Default or Event of
Default would exist immediately after giving effect thereto, and (y) in the case
of a Wholly-Owned Subsidiary, such Subsidiary remains a Wholly-Owned Subsidiary
after the merger transaction is consummated, and (v) the Guarantor may transfer,
sell or convey the stock of one or more of its Subsidiaries (other than the
Borrowers) to one or more of its other Subsidiaries so long as, in the case of
any such transfer, sale or conveyance of the stock of any Designated Subsidiary,
the indirect ownership interest of the Guarantor in such Designated Subsidiary
is not reduced as a result thereof.
(k) Leases. The Guarantor will not enter into or permit any Subsidiary to
enter into any agreements to rent or lease any real or personal property
(excluding capitalized leases) except in the ordinary course of business.
(l) Indebtedness. The Guarantor will not permit any of its Subsidiaries to
contract, create, incur, assume or suffer to exist any Indebtedness, except (i)
Indebtedness listed on Schedule II ("Existing Indebtedness"), (ii) accrued
expenses and current trade accounts payable incurred in the ordinary course of
business, and obligations under trade letters of credit incurred by such
Subsidiaries in the ordinary course of business, which are to be repaid in full
not more than one year after the date on which such Indebtedness is originally
incurred to finance the purchase of goods by such Subsidiary, (iii) obligations
under letters of credit incurred by such Subsidiaries in the ordinary course of
business in support of obligations incurred in connection with worker's
compensation, unemployment insurance and other social security legislation, (iv)
Indebtedness of Subsidiaries of the Guarantor to the extent permitted under
clause (m)(iv)-(vii) below, (v) Indebtedness of the Borrowers or any other
Subsidiary of the Guarantor arising under, or constituting guaranties of, the
Credit Agreement, (vi) other Indebtedness of the Borrowers so long as no Default
or Event of Default then exists or would result therefrom, (vii) other
Indebtedness of Foreign Subsidiaries of the Guarantor and (viii) Indebtedness of
any Subsidiary of the Guarantor, provided that such Indebtedness was outstanding
at such Subsidiary prior to the acquisition by the
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Guarantor of such Subsidiary and was not incurred in connection with or in
contemplation of such acquisition.
(m) Investments. The Guarantor will not, and will not permit any of its
Subsidiaries to, lend money or credit or make advances to any Person, or
purchase or acquire any stock, obligations or securities of, or any other
interest in, or make any capital contribution to, any other Person, except that
the following shall be permitted:
(i) the Guarantor and its Subsidiaries may acquire and hold
receivables owing to it, if created or acquired in the ordinary course of
business and payable or dischargeable in accordance with customary trade
terms;
(ii) the Guarantor and its Subsidiaries may acquire and hold Cash
Equivalents, and Foreign Subsidiaries of the Guarantor may acquire and
hold Foreign Cash Equivalents;
(iii) the Guarantor and its Subsidiaries may make loans and
advances to officers, employees and agents in the ordinary course of
business;
(iv) the Guarantor may make loans, advances or capital
contributions to Subsidiaries;
(v) Subsidiaries of the Guarantor may make loans, advances or
capital contributions to the Guarantor or other Subsidiaries;
(vi) the Guarantor and its Subsidiaries may have Investments in
Affiliates at any one time outstanding up to but not exceeding an amount
equal to one-third (1/3rd) of Consolidated Adjusted Net Worth at such
time;
(vii) the Guarantor and its Subsidiaries may purchase or acquire
stock or securities, or acquire assets or assume liabilities, of another
Person in arm's-length transactions so long as no Default or Event of
Default exists or would result therefrom, and, in the case of a purchase
or acquisition of stock or securities, such Person becomes a Subsidiary
of the Guarantor;
(viii) the Guarantor and its Subsidiaries may invest in preferred
auction rate stock and other similar tax favored short term investments
with a readily available and liquid secondary market; and
(ix) the Guarantor and its Subsidiaries may make loans, purchase
securities or make other investments not permitted by the foregoing
clauses of this Section 7(m) so long as the aggregate outstanding amount
thereof, net of cash repayments of principal in the case of loans and
cash sales proceeds in the case of securities or other investments that
are liquidated but excluding any write-ups or write-downs in the value of
any such loan, security or other investment that has not been liquidated,
shall not exceed 5.5% of Consolidated Adjusted Net Worth at any time.
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(n) Transactions with Affiliates. The Guarantor will not, and will not
permit any of its Subsidiaries to, enter into any transaction or series of
related transactions, whether or not in the ordinary course of business, with
any Affiliate of the Guarantor, other than on terms and conditions substantially
as favorable to the Guarantor or such Subsidiary as would be obtainable by the
Guarantor or such Subsidiary at the time in a comparable arm's-length
transaction with a Person other than an Affiliate.
(o) Total Consolidated Indebtedness to Total Consolidated Capitalization
Ratio. The Guarantor will not permit the ratio of its Total Consolidated
Indebtedness to Total Consolidated Capitalization to be more than (i) 0.65:1 at
any time from and including January 1 to and including September 30 of each year
and (ii) 0.55:1 at any time from and including October 1 to and including
December 31, of each year.
(p) Debt to Cash Flow Ratio. The Guarantor will not permit the Debt to
Cash Flow Ratio for the period of four consecutive fiscal quarters (taken as one
accounting period) ending on the last day of such fiscal quarter to be more than
5:1.
(q) Certain Obligations Respecting Subsidiaries. The Guarantor will not,
and will not permit any of its Subsidiaries to, directly or indirectly, create
or otherwise cause or suffer to exist or become effective any encumbrance or
restriction on the ability of any such Subsidiary to (a) pay dividends or make
any other distributions on its capital stock or any other interest or
participation in its profits owned by the Guarantor or any Subsidiary of the
Guarantor, or pay any Indebtedness owed to the Guarantor or a Subsidiary of the
Guarantor, (b) make loans or advances to the Guarantor or (c) transfer any of
its properties or assets to the Guarantor, except for (x) such encumbrances or
restrictions existing under or by reason of (i) applicable law, (ii) this
Guaranty or any other Credit Document and (iii) customary provisions restricting
subletting or assignment of any lease governing a leasehold interest of the
Guarantor or a Subsidiary of the Guarantor and (y) issuances by Subsidiaries of
preferred stock.
8. Definitions. Terms defined in the Credit Agreement and used, but not
otherwise defined, in this Guaranty shall have the respective meanings assigned
to such terms in the Credit Agreement. In addition, the following terms shall
have the following meanings (such meanings to be equally applicable to both the
singular and plural forms of the terms defined):
"Affiliate" shall mean, with respect to any Person, any other Person
(other than an individual) directly or indirectly controlling, controlled by, or
under direct or indirect common control with, such Person; provided, however,
that for purposes of Section 7(n), an Affiliate of the Guarantor shall include
any Person that directly or indirectly owns more than 5% of the Guarantor, and
any officer or director of the Guarantor or any such Person. A Person shall be
deemed to control another Person if such Person possesses, directly or
indirectly, the power to direct or cause the direction of the management and
policies of such other Person, whether through the ownership of voting
securities, by contract, or otherwise.
"Cash Equivalents" shall mean, as to any Person, (i) securities issued or
directly and fully guaranteed or issued by the United States or any agency or
instrumentality thereof (provided that the full faith and credit of the United
States is pledged in support thereof) having maturities of not more than six
months from the date of acquisition, (ii) time deposits and certificates of
deposit
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of any Bank, the Administrative Agent, and any commercial bank incorporated in
the United States of recognized standing having capital and surplus in excess of
$500,000,000 with maturities of not more than six months from the date of
acquisition by such Person, (iii) repurchase obligations with a term of not more
than seven days for underlying securities of the types described in clause (i)
above entered into with any bank meeting the qualifications specified in clause
(ii) above, (iv) commercial paper issued by the parent corporation of any Bank,
the Administrative Agent, and any commercial bank (provided that the parent
corporation and the bank are both incorporated in the United States) of
recognized standing having capital and surplus in excess of $500,000,000 and
commercial paper issued by any Person incorporated in the United States, which
commercial paper is rated at least A-1 or the equivalent thereof by Standard &
Poor's Corporation or at least P-1 or the equivalent thereof by Moody's
Investors Service, Inc. and in each case maturing not more than six months after
the date of acquisition by such Person and (v) investments in money market funds
substantially all the assets of which are comprised of securities of the types
described in clauses (i) through (iv) above.
"Consolidated Adjusted Net Worth" shall mean, at any time, the sum of (x)
the Guarantor's Consolidated Net Worth plus (y) the outstanding principal amount
of the Guarantor's Subordinated Indebtedness (to the extent and in the amount
that any portion of such principal amount matures one year or more after the
Expiry Date).
"Consolidated Current Assets" shall mean, as to any Person, the current
assets of such Person and its Subsidiaries determined on a consolidated basis.
"Consolidated Current Liabilities" shall mean, as to any Person, the
current liabilities of such Person and its Subsidiaries determined on a
consolidated basis.
"Consolidated Indebtedness" shall mean, for any fiscal quarter, an amount
equal to (x) the sum of (i) the average of the amounts of Indebtedness of the
types listed on Schedule III hereto on the last Business Day of each calendar
week ending during such fiscal quarter plus (ii) the amount of all Indebtedness
of the Guarantor and its Subsidiaries (other than Indebtedness of the types
listed on Schedule III hereto) (determined on a consolidated basis) on the last
day of such fiscal quarter plus (iii) without duplication of amounts included in
clauses (i) and (ii) above, the aggregate outstanding amount of Short-term
Preferred Stock of Subsidiaries of the Guarantor issued after the date hereof
minus (y) the sum of (i) the amount of all Cash Equivalents and investments of
the type described in Section 7(m)(viii) held by OFI on the last day of such
fiscal quarter plus (ii) the Dollar Equivalent of the amount of all Foreign Cash
Equivalents held by OFL on the last day of such fiscal quarter.
"Consolidated Net Income" shall mean the net income of the Guarantor and
its Subsidiaries determined on a consolidated basis in accordance with generally
accepted accounting principles.
"Consolidated Net Worth" shall mean, as to any Person, the Net Worth of
such Person and its Subsidiaries determined on a consolidated basis (including
therein the portion of such Net Worth reflecting minority interests in
Subsidiaries).
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"Debt to Cash Flow Ratio" shall mean the ratio of (i) Consolidated
Indebtedness for any fiscal quarter of the Guarantor to (ii) Net Cash Flow for
the period of four consecutive complete fiscal quarters of the Guarantor (taken
as one accounting period) ending on the last day of such fiscal quarter.
"Designated Subsidiaries" shall mean BBDO Worldwide Inc., BBDO Detroit
Inc., The DDB Needham Worldwide Communications Group Inc., DDB Needham Chicago
Inc., TBWA Chiat-Day Inc., Omnicom Finance Inc. and DDB Needham Worldwide
Partners Inc.
"Dollar Equivalent" shall mean, with respect to any Foreign Cash
Equivalent denominated in a currency other than U.S. Dollars, the amount of U.S.
Dollars into which the principal amount of such Foreign Cash Equivalent could be
converted at the then applicable Exchange Rate. For the purpose of the foregoing
determination, the "Exchange Rate" shall be the spot rate at which the relevant
currency is offered for sale against delivery of U.S. Dollars on the date of
determination thereof (or, if such date is not a Business Day, the next
preceding Business Day), as set forth in The Wall Street Journal; provided that
if no such rate is set forth in The Wall Street Journal on such date, the
"Exchange Rate" shall be the rate quoted by the Administrative Agent at the
opening of business on such date (or, if such date is not a Business Day, the
next preceding Business Day) for the spot rate at which the relevant currency is
offered for sale by the Administrative Agent against delivery of U.S. Dollars.
"Foreign Cash Equivalents" shall mean (i) time deposits, certificates of
deposit and similar instruments of any Bank or any other commercial bank having
long-term indebtedness rated in its highest rating category by Moody's Investors
Services, Inc. or by Standard & Poor's Corporation, and (ii) such other
securities and investments as shall be approved by the Administrative Agent from
time to time.
"Indebtedness" shall mean, as to any Person, without duplication, (i) all
indebtedness (including principal, interest, fees and charges) of such Person
for borrowed money or for the deferred purchase price of property or services
(other than earn-out payment obligations of such Person in connection with the
purchase of property or services to the extent that they are still contingent),
(ii) the face amount of all letters of credit issued for the account of such
Person and all drafts drawn thereunder (other than letters of credit issued in
support of accrued expenses and accounts payable incurred in the ordinary course
of business), (iii) all liabilities secured by any Lien on any property owned by
such Person, whether or not such liabilities have been assumed by such Person,
(iv) the aggregate amount required to be capitalized under leases under which
such Person is the lessee and (v) all Contingent Obligations of such Person.
"Investments in Affiliates" shall mean all amounts paid and the fair
market value of all non-cash delivered in consideration for the purchase of
securities of, or the making of any other investment in, any Person that, after
giving effect to such purchase or other investment, is not a Subsidiary of the
Guarantor but is subject to the exercise by the Guarantor (directly or
indirectly) of significant influence over its operating and financial policies.
"Net Cash Flow" shall mean, for any period, the Consolidated Net Income
for such period without giving effect to any extraordinary gains or losses and
gains or losses from sales of assets (other than sales of inventory in the
ordinary course of business), adjusted by (x) adding
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thereto the following items: (i) the amount of all amortization of intangibles
and depreciation that were deducted in arriving at such Consolidated Net Income
for such period, (ii) the portion of such Consolidated Net Income attributable
to minority interests in Subsidiaries, and (iii) the amount of all dividends
received during such period by the Guarantor or any of its Subsidiaries from
Persons other than Subsidiaries of the Guarantor, to the extent not included in
calculating Consolidated Net Income for such period and (y) deducting therefrom
(i) the amount of all dividends paid by Subsidiaries of the Guarantor to Persons
other than the Guarantor or Wholly-Owned Subsidiaries of the Guarantor during
such period, (ii) the net income for such period of Persons other than
Subsidiaries of the Guarantor, to the extent allocated to the equity interest of
the Guarantor or any such Subsidiary in such Persons, and (iii) an amount, if
positive, equal to (x) the amount of all dividends paid by the Guarantor to its
common or preferred shareholders during such period, minus (y) 50% of the
Consolidated Net Income.
"Net Worth" shall mean, as to any Person, the sum of its capital stock,
capital in excess of par or stated value of shares of its capital stock,
retained earnings and any other accounts which, in accordance with generally
accepted accounting principles in the United States, constitutes stockholders
equity, but in any event deducting therefrom any treasury stock, provided that
each of the foregoing shall be determined without giving effect to any foreign
currency translation adjustments.
"Short-term Preferred Stock" shall mean any preferred stock of any
Subsidiary of the Guarantor that has any maturity or redemption date, or that
can be required to be redeemed at the option of the holder thereof, on or before
the date one year after the Expiry Date (the amount of any Short-term Preferred
Stock being calculated for the purposes of the definition of the term
"Consolidated Indebtedness" as the higher of the liquidation preference or the
redemption price thereof).
"Subordinated Indebtedness" of any Person shall mean all Indebtedness of
such Person which is subordinated both to the Obligations under the Credit
Agreement and all obligations arising under this Guaranty, on terms and
conditions satisfactory to the Administrative Agent and the Required Banks;
provided that when used with respect to the Guarantor, the term "Subordinated
Indebtedness" shall be deemed to include (i) all Indebtedness of the Guarantor
evidenced by its 4-1/4% Convertible Subordinated Debentures due 2007 and its
2-1/4% Convertible Subordinated Debentures due 2013, in each case as such
Debentures (and the respective indenture governing the terms thereof) are in
effect on the date hereof and (ii) all Indebtedness of the Guarantor evidenced
and governed by documentation containing subordination terms, covenants,
mandatory redemption provisions, events of default and remedies available upon
the existence of an event of default no less favorable to the Banks and no more
restrictive on the Guarantor and its Subsidiaries than those contained in the
documentation evidencing and governing the debt issuances referred to in clause
(i) above; in each case as amended, modified and supplemented from time to time
with the consent of the Administrative Agent and the Required Banks.
"Total Consolidated Capitalization" shall mean, at any time, the sum of
Total Consolidated Indebtedness at such time plus Consolidated Net Worth at such
time.
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"Total Consolidated Indebtedness" shall mean, at any time, all
Indebtedness of the Guarantor and its Subsidiaries at such time, determined on a
consolidated basis.
"Wholly-Owned Subsidiary" shall mean, as to any Person, (i) any
corporation 100% of whose capital stock is at the time owned by such Person
and/or one or more Wholly-Owned Subsidiaries of such Person and (ii) any
partnership, association, joint venture or other entity in which such Person
and/or one or more Wholly-Owned Subsidiaries of such Person has a 100% equity
interest at such time.
9. Continuing Guaranty, Etc. This Guaranty is a continuing one and all
liabilities to which it applies or may apply under the terms hereof shall be
conclusively presumed to have been created in reliance hereon. No failure or
delay on the part of any Guaranteed Party in exercising any right, power or
privilege hereunder and no course of dealing between the Guarantor, any
Guaranteed Party or the holder of any Note shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any
other right, power or privilege. The rights, powers and remedies herein
expressly provided are cumulative and not exclusive of any rights, powers or
remedies which any Guaranteed Party or the holder of any Note would otherwise
have. No notice to or demand on the Guarantor in any case shall entitle the
Guarantor to any other further notice or demand in similar or other
circumstances or constitute a waiver of the rights of any Guaranteed Party or
the holder of any Note to any other or further action in any circumstances
without notice or demand.
10. Successors and Assigns. This Guaranty shall be binding upon the
Guarantor and its successors and assigns and shall inure to the benefit of the
Guaranteed Parties and their successors and assigns.
11. Amendments, Etc. Neither this Guaranty nor any provision hereof may be
changed, waived, discharged or terminated except as provided in Section 12.13 of
the Credit Agreement.
12. Receipt of Credit Agreement. The Guarantor acknowledges that an
executed (or conformed) copy of the Credit Agreement has been made available to
its principal executive officers and such officers are familiar with the
contents thereof.
13. Setoff. In addition to any rights now or hereafter granted under
applicable law or otherwise, and not by way of limitation of any such rights,
upon the occurrence of an Event of Default each of the Banks is hereby
authorized at any time or from time to time, without presentment, demand,
protest, or other notice of any kind to the Guarantor or to any other Person,
any such notice being hereby expressly waived, to set off and to appropriate and
apply any and all deposits (general or special) and any other Indebtedness at
any time held or owing by such Bank (including, without limitation, by branches
and agencies of such Bank and its affiliates wherever located) to or for the
credit or the account of the Guarantor against and on account of the obligations
of the Guarantor to such Bank under this Guaranty, irrespective of whether or
not such Bank shall have made any demand hereunder and although said
obligations, or any of them, shall be contingent or unmatured.
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14. Notices. All notices and other communications hereunder shall be made
at the addresses, in the manner and with the effect provided in Section 12.03 of
the Credit Agreement, provided that, for this purpose, the address of the
Guarantor shall be the one specified opposite its signature below.
15. Reinstatement. If claim is ever made upon any Guaranteed Party or the
holder of any Note for repayment or recovery of any amount or amounts received
in payment or on account of any of the Guaranteed Obligations and any of the
aforesaid payees repays all or part of said amount by reason of (a) any
judgment, decree or order of any court or administrative body having
jurisdiction over such payee or any of its property or (b) any settlement or
compromise of any such claim effected by such payee with any such claimant
(including the Guarantor), the Guarantor shall be and remain liable to the
aforesaid payees hereunder for the amount so repaid or recovered to the same
extent as if such amount had never originally been received by any such payee.
16. Statute of Limitations. Any acknowledgment or new promise, whether by
payment of principal or interest or otherwise and whether by the Borrower or
others (including the Guarantor), with respect to any of the Guaranteed
Obligations shall, if the statute of limitations in favor of the Guarantor
against any Guaranteed Party or the holder of any Note shall have commenced to
run, toll the running of such statute of limitations, and if the period of such
statute of limitations shall have expired, prevent the operation of such statute
of limitations.
17. Generally Accepted Accounting Principles. The financial statements to
be furnished to the Banks pursuant hereto shall be made and prepared in
accordance with generally accepted accounting principles in the United States
consistently applied throughout the periods involved (except as set forth in the
notes thereto or as otherwise disclosed in writing by the Guarantor to the
Banks); provided that, except as otherwise specifically provided herein, all
computations determining compliance with Section 7 shall utilize accounting
principles and policies in conformity with those used to prepare the historical
financial statements delivered to the Banks pursuant to Section 6(e).
18. Governing Law, Submission to Jurisdiction. This Guaranty and the
rights and obligations of the Guaranteed Parties, the holders of the Notes and
the Guarantor hereunder shall be construed in accordance with and governed by
the law of the State of New York. Any legal action or proceeding with respect to
this Guaranty may be brought in the courts of the State of New York, and, by
execution and delivery of this Agreement, the Guarantor hereby irrevocably
accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts. The Guarantor agrees
that if at any time its principal place of business is not in the City and State
of New York, it will irrevocably designate, appoint and empower an agent for
purposes of this Section, in the City and State of New York, as its designee,
appointee and agent to receive, accept and acknowledge for and on its behalf,
and in respect of its property, service of any and all legal process, summons,
notices and documents which may be served in any such action or proceeding. If
for any reason such designee, appointee and agent shall cease to be available to
act as such, the Guarantor agrees to designate a new designee, appointee and
agent in New York City on the terms and for the purposes of this provision
satisfactory to the Administrative Agent. The Guarantor further irrevocably
consents to the service of process out of any of the aforementioned courts in
any such action or proceeding by the mailing of copies thereof by registered or
certified mail, postage
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prepaid, to the Guarantor at its address set forth opposite its signature below,
such service to become effective 30 days after such mailing. Nothing herein
shall affect the right of any Guaranteed Party or the holder of any Note to
serve process in any other manner permitted by law or to commence legal
proceedings or otherwise proceed against the Guarantor in any other
jurisdiction. The Guarantor hereby irrevocably waives any objection which it may
now or hereafter have to the laying of venue of any of the aforesaid actions or
proceedings arising out of or in connection with the Guaranty brought in the
courts referred to above and hereby further irrevocably waives and agrees not to
plead or claim in any such court that any such action or proceeding brought in
any such court has been brought in an inconvenient forum.
19. Judgment Currency. The obligation of the Guarantor to make payment in
Dollars of any Guaranteed Obligations due hereunder shall not be discharged or
satisfied by any tender, or any recovery pursuant to any judgment, which is
expressed in or converted into any currency other than Dollars, except to the
extent such tender or recovery shall result in the actual receipt by the
respective Guaranteed Party in the United States of America of the full amount
of Dollars expressed to be payable in respect of any such Guaranteed
Obligations. The obligation of the Guarantor to make payment in Dollars as
aforesaid shall be enforceable as an alternative or additional cause of action
for the purpose of recovery in Dollars of the amount, if any, by which such
actual receipt shall fall short of the full amount of Dollars expressed to be
payable in respect of any such Guaranteed Obligations, and shall not be affected
by judgment being obtained for any other sums due under this Guaranty.
-19-
IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be executed
and delivered as of the date first above written.
Address
- -------
437 Madison Avenue OMNICOM GROUP INC.
New York, New York 10022
Attention:
By: /s/ Dennis E. Hewitt
-----------------------
Name: Dennis E. Hewitt
Title: Treasurer
Accepted and Agreed to:
CITIBANK, N.A.,
as Administrative Agent for the Banks
By: /s/ Carolyn A. Kee
--------------------
Name: Carolyn A. Kee
Title: Vice President
-20-
SCHEDULE I
----------
SUBSIDIARIES OF THE GUARANTOR AS OF MARCH 29, 1999
--------------------------------------------------
(for purposes of Section 6(l))
See attachment hereto.
-21-
Attachment to
Schedule I
-------------
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
Omnicom Group Inc................................ New York -- --
Cline Davis & Mann, Inc.......................... New York Registrant 100%
Omnicom International Inc........................ Delaware Registrant 100%
Omnicom Management Inc........................... Delaware Registrant 100%
Omnicom Finance Inc.............................. Delaware Registrant 100%
Omnicom International Holdings Inc............... Delaware Registrant 100%
Communicade Inc.................................. Delaware Registrant 100%
C-D Acquisitions Inc............................. Delaware Registrant 100%
Strategic Alliance Services Inc.................. Delaware Registrant 100%
Goodby, Silverstein & Partners Holdings Inc...... California Registrant 100%
Goodby, Silverstein & Partners Inc............... California Goodby, Silverstein & Partners Holdings Inc. 100%
I&S Corporation.................................. Japan Registrant 40%
Manning Gottlieb Media Ltd....................... United Kingdom Omnicom UK Ltd. 53%
Simons Palmer Clemmow Johnson (Holdings) Ltd. 35%
The Allmond Partnership Limited United Kingdom Manning Gottlieb Media Limited 66%
Omnicom Finance Ltd.............................. United Kingdom Diversified Agency Services Ltd. 100%
BBDO Worldwide Inc............................... New York Registrant 100%
BBDO Atlanta, Inc................................ Georgia BBDO Worldwide Inc. 100%
BBDO Chicago, Inc................................ Delaware BBDO Worldwide Inc. 100%
BBDO Detroit, Inc................................ Delaware BBDO Worldwide Inc. 100%
BBDO International Inc........................... Delaware Omnicom International Inc. 100%
Baker Lovick, L.L.C.............................. Delaware BBDO Canada Inc. 99%
Omnicom Finance Ltd. 1%
Ross Roy Communications, Inc..................... Michigan Registrant 100%
RATTO/BBDO S.A................................... Argentina BBDO Worldwide Inc. 40%
Clemenger BBDO Ltd............................... Australia BBDO Worldwide Inc. 47%
Diversified Marketing Services Pty. Ltd.......... Australia Clemenger BBDO Ltd. 47%
Clemenger Direct Pty. Ltd. (Sydney).............. Australia Diversified Marketing Services Pty. Ltd. 47%
Multinet Systems................................. Australia Diversified Marketing Services Pty. Ltd. 33%
Porter Novelli Australia (Melbourne) Pty. Ltd.... Australia Diversified Marketing Services Pty. Ltd. 26%
Porter Novelli Australia Pty. Ltd................ Australia Diversified Marketing Services Pty. Ltd. 26%
Curtis Jones & Brown (Sydney).................... Australia Diversified Marketing Services Pty. Ltd. 26%
Port Productions Pty. Ltd. (Melbourne)........... Australia Diversified Marketing Services Pty. Ltd. 35%
Total Advt & Communications...................... Australia Diversified Marketing Services Pty. Ltd. 26%
Emory Vincent design............................. Australia Diversified Marketing Services Pty. Ltd. 28%
Corporate Communications (Tasmania) Pty. Ltd..... Australia Diversified Marketing Services Pty. Ltd. 16%
Turnbull Porter Novelli (Melbourne).............. Australia Diversified Marketing Services Pty. Ltd. 47%
Turnbull Porter Novelli (Sydney)................. Australia Diversified Marketing Services Pty. Ltd. 47%
Turnbull Porter Novelli (Perth).................. Australia Diversified Marketing Services Pty. Ltd. 9%
Turnbull Porter Novelli (Adelaide)............... Australia Diversified Marketing Services Pty. Ltd. 14%
Postel Australia Pty. Ltd........................ Australia Diversified Marketing Services Pty. Ltd. 35%
Hardie Grant Magazines Pty. Ltd.................. Australia Diversified Marketing Services Pty. Ltd. 12%
Zivo Pty. Ltd.................................... Australia Diversified Marketing Services Pty. Ltd. 12%
CorPol Alliances Pty. Ltd........................ Australia Diversified Marketing Services Pty. Ltd. 28%
MM Communications Pty. Ltd....................... Australia Diversified Marketing Services Pty. Ltd. 33%
Clemenger Sydney Pty. Ltd........................ Australia Clemenger BBDO Ltd. 47%
Clemenger Melbourne Pty. Ltd..................... Australia Clemenger BBDO Ltd. 47%
Clemenger Adelaide Pty. Ltd...................... Australia Clemenger BBDO Ltd. 47%
Clemenger Tasmania Pty. Ltd...................... Australia Clemenger BBDO Ltd. 47%
Clemenger/Concept Pty. Ltd....................... Australia Clemenger BBDO Ltd. 47%
Adconnect........................................ Australia Clemenger BBDO Ltd. 5%
TEAM/BBDO Werbeagentur Ges. m.b.H................ Austria BBDO Worldwide Inc. 100%
S-2
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
TEAM/BBDO Werbeagentur Ges. m.b.H & Co. Kg....... Austria TEAM/BBDO Werbeagentur Ges.m.b.H 84%
Palla, Koblinger & Partner GmbH.................. Austria TEAM/BBDO Werbeagentur Ges.m.b.H 20%
Optimum Media Direction.......................... Austria TEAM/BBDO Werbeagentur Ges. m.b.H & Co. Kg 42%
Heye & Partner Werbeagentur GmbH 50%
BBDO Belgium S.A................................. Belgium BBDO Worldwide Inc. 94%
Sponsoring & Event Marketing S.A................. Belgium BBDO Belgium S.A. 70%
Omnimedia S.A.................................... Belgium BBDO Belgium S.A. 47%
DDB Needham Worldwide S.A. 46%
Morael & Partners S.A............................ Belgium BBDO Belgium S.A. 66%
VVL/BBDO S.A..................................... Belgium BBDO Belgium S.A. 75%
Moors Bloomsbury................................. Belgium BBDO Belgium S.A. 75%
N'Lil S.A........................................ Belgium BBDO Belgium S.A. 48%
Optimum Media Direction.......................... Belgium BBDO Belgium S.A. 47%
DDB Needham Worldwide S.A. 46%
Optimum Media Team S.A........................... Belgium BBDO Belgium S.A. 42%
DDB Needham Worldwide S.A. 46%
The Media Partnership S.A........................ Belgium BBDO Belgium S.A. 23%
DDB Needham Worldwide S.A. 23%
Topolino S.A..................................... Belgium BBDO Belgium S.A. 48%
BBDO/Business Communications S.A................. Belgium BBDO Belgium S.A. 75%
DMC.............................................. Belgium BBDO Belgium S.A. 47%
No Media Comunicacao Ltda........................ Brazil ALMAP/BBDO Comunicacoes Ltda. 70%
ALMAP/BBDO Comunicacoes Ltda..................... Brazil BBDO Publicidade, Ltda. 70%
BBDO Publicidade, Ltda........................... Brazil BBDO Worldwide Inc. 100%
BBDO Canada Inc.................................. Canada BBDO Worldwide Inc. 100%
McKim Communications Ltd......................... Canada BBDO Canada Inc. 49%
Generator Corp................................... Canada BBDO Canada Inc. 70%
Prophet DataProbe Inc............................ Canada BBDO Canada Inc. 90%
Lanyon Phillips Communications Inc............... Canada BBDO Canada Inc. 17%
Omnicom Canada Inc. 60%
Bazooka Information Design Inc................... Canada Lanyon Phillips Communications Inc. 77%
Blue Suede Studio Inc............................ Canada Lanyon Phillips Communications Inc. 77%
PNMD, Inc........................................ Canada Omnicom Canada Inc. 49%
Ross Roy Group of Canada, Ltd.................... Canada Ross Roy Communications, Inc. 100%
Ross Roy Communications Canada Ltd............... Canada Ross Roy Group of Canada, Ltd. 100%
BBDO Chile, S.A.................................. Chile BBDO Worldwide Inc. 60%
IMAX S.A......................................... Chile BBDO Chile, S.A. 31%
Publicista y Clientes S.A........................ Chile BBDO Chile, S.A. 30%
180 degrees...................................... Chile BBDO Chile, S.A. 15%
Media Direction.................................. Chile BBDO Chile, S.A. 60%
BBDO Investigacion............................... Chile BBDO Chile, S.A. 60%
Axis............................................. Chile BBDO Chile, S.A. 30%
BBDO Publicidad ................................. Chile BBDO Chile, S.A. 60%
Multinet ....................................... Chile BBDO Chile, S.A. 18%
BBDO/CNUAC Advertising Co. Ltd................... China BBDO Asia Pacific Ltd. 51%
Garnier/BBDO S.A................................. Costa Rica BBDO Worldwide Inc. 20%
BBDO Zagreb...................................... Croatia BBDO Worldwide Inc. 60%
Impact/BBDO International Ltd.................... Cyprus BBDO Worldwide Inc. 44%
Impact/BBDO Group Partnership.................... Cyprus Impact/BBDO International Ltd. 44%
Impact/ BBDO Advertising & Marketing Ltd. 1%
Impact/ BBDO Advertising & Marketing Ltd......... Cyprus Impact/BBDO International Ltd. 44%
Mark/BBDO a.s.................................... Czech Republic BBDO Worldwide Europe GmbH 80%
Media Direction a.s.............................. Czech Republic BBDO Worldwide Europe GmbH 80%
BBDO Danmark A/S................................. Denmark BBDO Worldwide Inc. 75%
BBDO A/S......................................... Denmark BBDO Danmark A/S 75%
S-3
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
BBDO Business Communications A/S................. Denmark BBDO Danmark A/S 30%
Sepia A/S........................................ Denmark BBDO Danmark A/S 19%
Sleeping Beauty A/S.............................. Denmark BBDO Business Communications A/S 7%
BBDO A/S 19%
Sepia A/S 5%
Networkers A/S................................... Denmark Sleeping Beauty A/S 22%
Administration ApS............................... Denmark BBDO Business Communications A/S 4%
BBDO A/S 9%
Sepia A/S 2%
DDB Needham Denmark A/S 9%
Rapp & Collins/DDB Denmark A/S 6%
TBWA Reklamebureau A/S 11%
Optima Media Direction .......................... Denmark BBDO Danmark A/S 53%
DDB Needham Denmark A/S 20%
The Media Partnership............................ Denmark Optima Media Direction 23%
Impact Advertising Ltd........................... Egypt Impact/BBDO International Ltd. 44%
Apex Publicidad, S.A............................. El Salvador Garnier/BBDO 15%
BBDO Helsinki OY................................. Finland BBDO Worldwide Europe GmbH 86%
BBDO Paris S.A................................... France BBDO Worldwide Europe GmbH 90%
The Media Partnership ........................... France BBDO Paris S.A. 15%
West End S.A..................................... France BBDO Paris S.A. 48%
BBDO Marketing Services S.A...................... France BBDO Paris S.A. 46%
Realisation S.A.................................. France BBDO Paris S.A. 90%
Deslegan S.A..................................... France BBDO Paris S.A. 89%
Reflexions S.A................................... France BBDO Paris S.A. 90%
BLL Looping...................................... France BBDO Paris S.A. 45%
CLM/BBDO S.A..................................... France BBDO Paris S.A. 90%
Around Midnight S.A.............................. France BBDO Paris S.A. 90%
BBDO Corporate................................... France BBDO Paris S.A. 85%
Creapress S.A.................................... France BBDO Paris S.A. 72%
Client First S.A................................. France Deslegan S.A. 35%
Expertises S.A................................... France Deslegan S.A. 86%
Realites & Communications S.A.................... France Deslegan S.A. 61%
Saguez & Partners................................ France Deslegan S.A. 36%
Epsilon S.A...................................... France West End S.A. 48%
Appi S.A......................................... France Epsilon S.A. 48%
Blue Moon........................................ France BBDO Marketing Services S.A. 23%
Proximity S.A.................................... France BBDO Marketing Services S.A. 30%
Anaconda......................................... France Proximity S.A. 30%
ATM.............................................. France Proximity S.A. 30%
BBDO Worldwide Europe GmbH....................... Germany BBDO Worldwide Inc. 100%
BBDO GmbH ....................................... Germany BBDO Worldwide Europe GmbH 89%
BBDO Interactive GmbH............................ Germany BBDO GmbH 71%
KNSK/BBDO Werbeagentur Gmbh...................... Germany BBDO GmbH 89%
NOVUM Marketing- und Vertriebsberatung GmbH...... Germany BBDO GmbH 36%
The Media Partnership GmbH....................... Germany BBDO GmbH 22%
Communication Management GmbH Dusseldorf 25%
Stein Holding GmbH............................... Germany BBDO GmbH 62%
Boebel, Adam Werbeagentur GmbH................... Germany BBDO GmbH 84%
Art & Production Advertising Services GmbH....... Germany BBDO GmbH 89%
Sponsor Partners GmbH............................ Germany BBDO GmbH 53%
Media Direction GmbH............................. Germany BBDO GmbH 39%
HM1 Ges. f. Direktmarketing und
Werbelogistik GmbH............................. Germany BBDO GmbH 58%
BBDO Dusseldorf GmbH............................. Germany BBDO GmbH 89%
MSBK, Team Dialog-Marketing GmbH................. Germany BBDO GmbH 40%
S-4
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
MSBK International AG 31%
BBDO Dusseldorf GmbH Werbeagentur................ Germany BBDO GmbH 89%
SELL BY TEL Call- & Communication Center GmbH.... Germany BBDO GmbH 69%
BBDO Media Team GmbH............................. Germany BBDO GmbH 89%
M.I.D Marketinformationsdienst GmbH.............. Germany BBDO GmbH 44%
K & K Kohtes & Klewes Kommunikation GmbH......... Germany BBDO GmbH 44%
Economia Holding GmbH (Hamburg).................. Germany BBDO GmbH 44%
Kofner & Partner Werbeagentur GmbH............... Germany BBDO GmbH 36%
Leonhardt & Kern Werbung GmbH.................... Germany BBDO GmbH 68%
Luders/BBDO Werbeagentur GmbH.................... Germany BBDO GmbH 44%
BBDO Dusseldorf GmbH Advertising................. Germany BBDO GmbH 89%
G.F.M.O. GmbH.................................... Germany BBDO GmbH 82%
Brand Link GmbH.................................. Germany BBDO GmbH 76%
Redwood Brand Publishing GmbH.................... Germany BBDO GmbH 32%
Redwood International Publishing Ltd. 36%
Peter Schmidt, Claus Koch Holding GmbH........... Germany BBDO GmbH 28%
Art & Production pre-press center GmbH........... Germany Art & Production Advertising Services GmbH 89%
G.P.O. GmbH...................................... Germany G.F.M.O. GmbH 82%
G.F.M.S. GmbH.................................... Germany G.F.M.O. GmbH 82%
promediapart/G.F.M.O............................. Germany G.F.M.O. GmbH 74%
Leonhardt & Kern Alpha GmbH Werbeagentur......... Germany Leonhardt & Kern Werbung GmbH 68%
Leonhardt & Kern Beta GmbH Werbeagentur.......... Germany Leonhardt & Kern Werbung GmbH 52%
Leonhardt & Kern Gamma GmbH Werbeagentur......... Germany Leonhardt & Kern Werbung GmbH 62%
Design und Grafikstudio "An der Alster" GmbH..... Germany Economia Holding GmbH (Hamburg) 44%
Manfred Baumann GmbH Hamburg..................... Germany Economia Holding GmbH (Hamburg) 44%
Economia Ges. f. Marketing and Werb. GmbH & Co KG Germany Economia Holding GmbH (Hamburg) 44%
Brodersen, Stampe und Partner Werbeagentur GmbH.. Germany Economia Holding GmbH (Hamburg) 44%
DIALOGISTIK Service-Center Direktmarketing GmbH.. Germany HM1 Ges. f. Direktmarketing und Werbelogistik GmbH 58%
MD Factory Marketing Datanmanagement GmbH........ Germany HM1 Ges. f. Direktmarketing und Werbelogistik GmbH 29%
DCS GmbH......................................... Germany HM1 Ges. f. Direktmarketing und Werbelogistik GmbH 58%
HM1 Heuser, Mayer & Partner Direktmarketing GmbH. Germany HM1 Ges. f. Direktmarketing und Werbelogistik GmbH 58%
K & K Kohtes & Klewes PR GmbH.................... Germany K & K Kohtes & Klewes Kommunikation GmbH 44%
K & K Kohtes & Klewes Kommunikation Dresden GmbH. Germany K & K Kohtes & Klewes Kommunikation GmbH 31%
K & K Kohtes & Klewes Kommunikation
Frankfurt GmbH ............................... Germany K & K Kohtes & Klewes Kommunikation GmbH 33%
Viamedia Medienagentur fur Radio & TV GmbH....... Germany K & K Kohtes & Klewes Kommunikation GmbH 33%
PURE Information Public Relations GmbH........... Germany K & K Kohtes & Klewes Kommunikation GmbH 27%
K & K Kohtes, Klewes & Partner GmbH.............. Germany K & K Kohtes & Klewes Kommunikation GmbH 27%
K&K Kohtes & Klewes Kommunikation Hamburg GmbH... Germany K & K Kohtes & Klewes Kommunikation GmbH 36%
Kohtes & Klewes comm. medical GmbH............... Germany K & K Kohtes & Klewes Kommunikation GmbH 38%
Brodeur Kohtes & Klewes Kommunikation GmbH....... Germany K & K Kohtes & Klewes Kommunikation GmbH 42%
Michael Vagedes Ges. fur Eventkomm. mbH.......... Germany K & K Kohtes & Klewes Kommunikation GmbH 18%
K & K Kohtes & Klewes Komm. Berlin GmbH.......... Germany K & K Kohtes & Klewes Kommunikation GmbH 44%
Deekeling & Fiebig Agent. fur Komm. GmbH......... Germany K & K Kohtes & Klewes Kommunikation GmbH 33%
Promotion Dynamics GmbH.......................... Germany Stein Holding GmbH 62%
Stein Promotions GmbH............................ Germany Stein Holding GmbH 62%
Stein Promotions Hamburg GmbH.................... Germany Stein Holding GmbH 53%
MSBK Consulting GmbH............................. Germany MSBK/Team Dialog-Marketing GmbH 22%
P.S. Produktions-Service GmbH.................... Germany MSBK International AG 46%
SMP Werbeservice GmbH............................ Germany MSBK International AG 36%
Knauer/Rump/Partner Werbeagentur GmbH............ Germany MSBK International AG 49%
SELL/DIALOG Werbeagentur GmbH.................... Germany Knauer/Rump/Partner Werbeagentur GmbH 39%
Claus Koch Corp. Comm............................ Germany Peter Schmidt, Claus Koch Holding GmbH 28%
Peter Schmidt Stud. GmbH......................... Germany Peter Schmidt, Claus Koch Holding GmbH 28%
Final Artwork GmbH............................... Germany Peter Schmidt, Claus Koch Holding GmbH 28%
BBDO Advertising S.A............................. Greece BBDO Worldwide Europe GmbH 80%
BBDO Worldwide Inc. 10%
S-5
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
Team/Athens S.A.................................. Greece BBDO Advertising S.A. 64%
Arrow II Advertising S.A......................... Greece BBDO Advertising S.A. 32%
SPO S.A.......................................... Greece BBDO Advertising S.A. 45%
BGM/the Media Corp S.A......................... Greece BBDO Advertising S.A. 90%
Cinemax S.A...................................... Greece BBDO Advertising S.A. 90%
BGM/Media Direction Hellas S.A................... Greece BBDO Advertising S.A. 90%
BBDO Business Communications S.A................. Greece BBDO Advertising S.A. 90%
IKON S.A./Porter Novelli......................... Greece BBDO Advertising S.A. 77%
Point Zero S.A................................... Greece BBDO Advertising S.A. 24%
Grafis S.A....................................... Greece BBDO Advertising S.A. 90%
Lamda Alpha S.A.................................. Greece BBDO Advertising S.A. 23%
BBDO/Guatemala S.A............................... Guatemala Garnier/BBDO 30%
Zeus/BBDO........................................ Honduras Garnier/BBDO 23%
BBDO Asia Pacific Ltd............................ Hong Kong BBDO Worldwide Inc. 100%
BBDO Hong Kong Ltd............................... Hong Kong BBDO Asia Pacific Ltd. 100%
ADCOM BBDO Direct Limited........................ Hong Kong BBDO Hong Kong Ltd. 100%
The Orchard Group Limited........................ Hong Kong BBDO Asia Pacific Ltd. 100%
BBDO Budapest.................................... Hungary BBDO Worldwide Europe GmbH 100%
The Media Partnership............................ Hungary BBDO Budapest 25%
Hungarian Promotional Services................... Hungary BBDO Budapest 55%
Media Direction ................................. Hungary BBDO Budapest 100%
Optima Media Direction........................... Hungary BBDO Budapest 44%
RK Swamy/BBDO Advertising Ltd.................... India BBDO Asia Pacific Ltd. 20%
The Candover Company............................. Ireland BBDO Worldwide Inc. 50%
AMV (Investments) Ltd. 50%
Irish International.............................. Ireland The Candover Company 100%
Gitam/BBDO Ltd................................... Israel BBDO Worldwide Inc. 49%
Data Pro Ltd..................................... Israel Gitam/BBDO Ltd. 15%
Y.SAAR Ltd....................................... Israel Gitam/BBDO Ltd. 15%
Video Dada Ltd................................... Israel Gitam/BBDO Ltd. 49%
Multi Sdar Ltd................................... Israel Gitam/BBDO Ltd. 49%
Motiv Plus S.A................................... Israel Gitam/BBDO Ltd. 49%
Gitam International S.A.......................... Israel Motiv Plus S.A. 22%
BBDO Italy SpA................................... Italy BBDO Worldwide Inc. 100%
Impact & Echo.................................... Kuwait Impact/BBDO Group Partnership 22%
Impact/BBDO SAL.................................. Lebanon Impact/BBDO Group Partnership 22%
Impact/BBDO SARL................................. Lebanon Impact/BBDO Group Partnership 44%
Strategies SAL................................... Lebanon Impact/BBDO SAL 22%
BBDO (Malaysia) Sdn Bhd.......................... Malaysia BBDO Asia Pacific Ltd. 100%
BBDO Mexico, S.A. de C.V......................... Mexico BBDO Worldwide Inc. 80%
OFI Finance B.V.................................. Netherlands Registrant 66%
BBDO Canada Inc. 34%
BBDO Nederland B.V............................... Netherlands BBDO Worldwide Inc. 50%
Keja/Donia B.V................................... Netherlands BBDO Nederland B.V. 50%
FHV/BBDO Creative Marketing Agency N.V.......... Netherlands BBDO Nederland B.V. 50%
Bennis Porter Novelli............................ Netherlands BBDO Nederland B.V. 50%
Signum Informationieprojecten B.V................ Netherlands BBDO Nederland B.V. 50%
Bartels/Verdonk Impuls B.V....................... Netherlands BBDO Nederland B.V. 50%
BBDO Business Communications B.V................. Netherlands BBDO Nederland B.V. 50%
D.M. Het ReklameTeam B.V......................... Netherlands BBDO Nederland B.V. 35%
PLP Business Communications...................... Netherlands BBDO BC B.V. 26%
Liberty Films B.V................................ Netherlands FHV/BBDO Creative Marketing Agency N.V. 50%
Media Direction Netherland B.V................... Netherlands FHV/BBDO Creative Marketing Agency N.V. 31%
Adviesbureau Bennis Pauw en Partners BVBA........ Netherlands Bennis Porter Novelli 24%
S-6
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
Diversified Marketing Services Ltd. (N.Z.)....... New Zealand Clemenger BBDO Ltd. 47%
Aim Direct....................................... New Zealand Diversified Marketing Services Ltd. (N.Z.) 36%
Porter Novelli (Auckland)........................ New Zealand Diversified Marketing Services Ltd. (N.Z.) 23%
Porter Novelli (Wellington)...................... New Zealand Diversified Marketing Services Ltd. (N.Z.) 40%
Total Media...................................... New Zealand Diversified Marketing Services Ltd. (N.Z.) 19%
Colenso Communications Ltd. ..................... New Zealand Clemenger/BBDO Ltd. 47%
HKM Advertising Ltd. ............................ New Zealand Clemenger/BBDO Ltd. 47%
Agency Management Systems........................ New Zealand Clemenger/BBDO Ltd. 47%
Optimum Media Direction.......................... New Zealand Colenso Communications Ltd. 23%
HKM Advertising Ltd. 23%
BBDO/Nicaragua S.A............................... Nicaragua Garnier/BBDO 25%
BBDO Oslo A/S.................................... Norway BBDO Worldwide Europe GmbH 56%
Media Direction A/S.............................. Norway BBDO Oslo A/S 56%
Schroder Production A/S.......................... Norway BBDO Oslo A/S 56%
Sepia A/S........................................ Norway BBDO Oslo A/S 25%
BBDO Trade Marketing............................. Norway BBDO Oslo A/S 37%
Garnier/BBDO Inc. S.A............................ Panama BBDO Worldwide Inc. 50%
BBDO Panama...................................... Panama Garnier/BBDO Inc. S.A. 26%
BBDO Peru S.A.................................... Peru BBDO Worldwide Inc. 51%
PAC/BBDO Worldwide Inc........................... Philippines BBDO Asia Pacific Ltd. 30%
BBDO Warsaw...................................... Poland BBDO Worldwide Inc. 80%
Spin Communications.............................. Poland BBDO Warsaw 80%
Media Direction.................................. Poland BBDO Warsaw 80%
BBDO Portugal Agencia de Publicidade, Lda........ Portugal BBDO Worldwide Europe GmbH 80%
Media Direction.................................. Portugal BBDO Portugal Agencia de Publicidade, Lda. 80%
Headline Public Relations & Promotions, Inc...... Puerto Rico BBDO Puerto Rico Inc. 85%
BBDO Puerto Rico Inc............................. Puerto Rico BBDO Worldwide Inc. 85%
Graffiti/BBDO.................................... Romania BBDO Worldwide Inc. 20%
Carlos Productions............................... Romania Graffiti/BBDO 13%
BBDO Marketing A/O............................... Russia BBDO Worldwide Europe GmbH 100%
Arabian Central Establishment.................... Saudi Arabia Impact/BBDO International Ltd. 44%
BBDO Singapore Pte Ltd........................... Singapore BBDO Asia Pacific Ltd. 100%
Orchard Integrated Pte........................... Singapore The Orchard Group Limited 100%
Mark/BBDO Ltd.................................... Slovak Republic Mark/BBDO s.a. 31%
BBDO Worldwide Europe GmbH 39%
Berry Bush/BBDO (Proprietary) Limited............ South Africa BBDO Worldwide Europe GmbH 20%
Tiempo/BBDO Madrid S.A........................... Spain BBDO Espana S.A. 65%
The Media Partnership S.A........................ Spain BBDO Espana S.A. 23%
Contrapunto S.A.................................. Spain BBDO Espana S.A. 67%
Nucleo de Communicacion S.A...................... Spain Contrapunto S.A. 67%
Tiempo/BBDO S.A.................................. Spain BBDO Espana S.A. 77%
BBDO Espana S.A.................................. Spain BBDO Worldwide Inc. 90%
C.P. Communicacion S.A........................... Spain Contrapunto S.A. 62%
Media Direction Madrid S.A....................... Spain Tiempo/BBDO Madrid S.A. 65%
DEC S.A. .................................. Spain Tiempo/BBDO S.A. 65%
Media Direction S.A.............................. Spain Tiempo/BBDO S.A. 77%
SELLBYTELL AG.................................... Switzerland SELL BY TEL Call- & Communication Center GmbH 23%
MSBK International AG............................ Switzerland BBDO Worldwide Inc. 61%
MSBK Zurich AG................................... Switzerland MSBK International AG 24%
Ehrenstrahle International A.B................... Sweden BBDO Worldwide Europe GmbH 76%
HLR/BBDO Reklambyra A.B.......................... Sweden BBDO Worldwide Europe GmbH 100%
Ehrenstrahle & Co. in Stockholm A.B.............. Sweden Ehrenstrahle International A.B. 76%
HLR/Broadcast Filmproduction A.B................. Sweden HLR/BBDO Reklambyra A.B. 100%
Hard & Co. Reklambyra A.B........................ Sweden HLR/BBDO Reklambyra A.B. 52%
Gester & Co. A.B................................. Sweden HLR/BBDO Reklambyra A.B. 20%
S-7
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
BBDO Taiwan Advertising Company Ltd.............. Taiwan BBDO Asia Pacific Ltd. 55%
Damask/BBDO Limited.............................. Thailand BBDO Asia Pacific Ltd. 100%
Alice BBDO....................................... Turkey BBDO Worldwide Europe GmbH 30%
MEDIA +.......................................... Turkey Alice BBDO 27%
FOCUS 4.......................................... Turkey Alice BBDO 27%
BBDO Direct Marketing and PR Services............ Turkey Alice BBDO 30%
Impact/BBDO...................................... United Arab Emirates Impact/BBDO International Ltd. 44%
BBDO CEE (Ltd)................................... United Kingdom BBDO Worldwide Inc. 100%
Media Direction CEE (Ltd)........................ United Kingdom BBDO Worldwide Inc. 100%
Media Direct Ltd................................. United Kingdom BBDO Worldwide Inc. 100%
Abbott Mead Vickers Plc.......................... United Kingdom Registrant 100%
Freud Communications............................. United Kingdom Abbott Mead Vickers Plc. 100%
Redwood Publishing Ltd........................... United Kingdom Abbott Mead Vickers Plc. 100%
Redwood International Publishing Ltd............. United Kingdom Abbott Mead Vickers Plc. 100%
Abbott Mead Vickers BBDO Ltd..................... United Kingdom Abbott Mead Vickers Plc. 100%
Drum PHD Ltd..................................... United Kingdom Abbott Mead Vickers Plc. 100%
Barraclough Hall Woolston Gray Ltd............... United Kingdom Abbott Mead Vickers Plc. 100%
Hammond Communications Ltd....................... United Kingdom Abbott Mead Vickers Plc. 100%
Momentum Integrated Communications Ltd........... United Kingdom Abbott Mead Vickers Plc. 100%
Clarke Hooper Consulting Ltd..................... United Kingdom Abbott Mead Vickers Plc. 100%
Frew, MacMaster Ltd.............................. United Kingdom Abbott Mead Vickers Plc. 100%
Craik Jones Watson Mitchell Voelkel Ltd.......... United Kingdom Abbott Mead Vickers Plc. 100%
Anthem Advertising Ltd........................... United Kingdom Abbott Mead Vickers Plc. 100%
New PHD Ltd...................................... United Kingdom Abbott Mead Vickers Plc. 100%
AMV (Investments) Ltd............................ United Kingdom Abbott Mead Vickers Plc. 100%
Telecom Express Ltd.............................. United Kingdom Abbott Mead Vickers Plc. 100%
Fishburn Hedges Boys Williams Holdings Ltd....... United Kingdom Abbott Mead Vickers Plc. 100%
McBain, Noel-Johnson & Co Ltd.................... United Kingdom Abbott Mead Vickers Plc. 100%
Leagas Delaney Group Ltd......................... United Kingdom Abbott Mead Vickers Plc. 100%
Aurelia Public Relations Ltd..................... United Kingdom Freud Communications 100%
Traffic Interactive Ltd.......................... United Kingdom Freud Communications 33%
Clarke Hooper Consulting Ltd. 67%
Brand Asset Management Licnesing Ltd............. United Kingdom Freud Communications 20%
Prager & Partners Ltd............................ United Kingdom Barraclough Hall Woolston Gray Ltd. 75%
The O'Connell Partnership Ltd.................... United Kingdom Momentum Integrated Communications Ltd. 100%
Games Marketing Group Ltd........................ United Kingdom Clarke Hooper Consulting Ltd. 100%
PHD Compass Ltd.................................. United Kingdom New PHD Ltd 50%
MSc Communications Ltd........................... United Kingdom New PHD Ltd 50%
Outdoor Connection Ltd........................... United Kingdom New PHD Ltd 33%
Media Sciene Ltd................................. United Kingdom New PHD Ltd 100%
Oval (1028) Ltd.................................. United Kingdom New PHD Ltd 100%
Fishburn Hedges Boys Williams Ltd................ United Kingdom Fishburn Hedges Boys Williams Holdings Ltd. 100%
Complete Print Solutions Ltd..................... United Kingdom McBain, Noel-Johnson & Co Ltd. 100%
Electronic Studio TM Ltd......................... United Kingdom McBain, Noel-Johnson & Co Ltd. 100%
The Leagas Delaney Partnership Ltd............... United Kingdom Leagas Delaney Group Ltd. 100%
Leagas Delany International Ltd.................. United Kingdom Leagas Delaney Group Ltd. 100%
Media Direction Ltd.............................. United Kingdom Leagas Delaney Group Ltd. 100%
BBDO Europe Ltd.................................. United Kingdom Prism International Ltd. 100%
BBDO/Venezuela C.A............................... Venezuela BBDO Worldwide Inc. 50%
DDB Needham Chicago, Inc......................... Delaware The DDB Needham Worldwide Communications Group, Inc. 100%
DDB Needham International Inc.................... Delaware Omnicom International Inc. 100%
Latin Advertising Venture LLC.................... Delaware DDB Needham Worldwide Partners, Inc. 100%
DDB Needham Worldwide Partners, Inc.............. New York The DDB Needham Worldwide Communications Group, Inc. 100%
The DDB Needham Worldwide Communications
Group, Inc. .................................. New York Registrant 100%
Griffin Bacal Inc................................ New York DDB Needham Chicago, Inc. 100%
S-8
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
DDB Needham Dallas, Inc.......................... Texas The DDB Needham Worldwide Communications Group, Inc. 100%
Tracy-Locke, Inc................................. Texas DDB Needham Dallas, Inc. 100%
PGC Advertising, Inc............................. Texas Registrant 100%
Elgin DDB Inc.................................... Washington The DDB Needham Worldwide Communications Group, Inc. 100%
The Focus Agency Inc............................. Washington Registrant 100%
Rainuzzo DDB S.A................................. Argentina DM9 Holding 40%
DDB Needham Worldwide Pty. Ltd. (Australia) ..... Australia DDB Needham Worldwide Partners, Inc. 100%
DDB Needham Brisbane Pty. Ltd.................... Australia DDB Needham Worldwide Pty. Ltd. (Australia) 100%
Diversified Communications Group Pty. Ltd........ Australia DDB Needham Worldwide Pty. Ltd. (Australia) 100%
DDB Needham Sydney Pty. Ltd...................... Australia DDB Needham Worldwide Pty. Ltd. (Australia) 100%
Production 32 Pty. Ltd........................... Australia DDB Needham Worldwide Pty. Ltd. (Australia) 100%
DDB Needham Melbourne Pty. Ltd................... Australia DDB Needham Worldwide Pty. Ltd. (Australia) 100%
DDB Needham Finance Pty. Ltd..................... Australia DDB Needham Worldwide Pty. Ltd. (Australia) 100%
Carr Clark Rapp Collins Pty. Ltd................. Australia Diversified Communications Group Pty. Ltd. 100%
Salesforce Australia Pty. Ltd.................... Australia Diversified Communications Group Pty. Ltd. 100%
Heye & Partner Werbeagentur GmbH ................ Austria Heye & Partner GmbH 45%
DDB Needham Heye & Partner GmbH.................. Austria DDB Holding Europe SCA 100%
DDB Needham Worldwide S.A. ...................... Belgium DDB Holding Europe SCA 92%
Marketing Power Rapp & Collins S.A............... Belgium DDB Needham Worldwide S.A. 60%
Production 32 S.A................................ Belgium DDB Needham Worldwide S.A. 92%
DM9 DDB Publicidad............................... Brazil DM9 Holding 76%
Ghirrotti & Co................................... Brazil The DDB Needham Worldwide Communications Group, Inc. 20%
Olympic DDB Needham Bulgaria..................... Bulgaria Olympic DDB Needham S.A. 63%
Omnicom Canada Inc............................... Canada Registrant 100%
Griffin Bacal Volny.............................. Canada Griffin Bacal Canada 100%
Griffin Bacal Canada............................. Canada Griffin Bacal Inc. 100%
Palmer Jarvis Inc................................ Canada Registrant 100%
Area 51 Interactive Inc.......................... Canada Palmer Jarvis Inc. 100%
Kaizen Media Services Inc........................ Canada Palmer Jarvis Retail Advertising Ltd. 100%
Focus Strategies & Communications Ltd............ Canada Palmer Jarvis Retail Advertising Ltd. 100%
The Malahat Group Inc............................ Canada Palmer Jarvis Retail Advertising Ltd. 50%
First Event Sports and Sponsorship Inc........... Canada Palmer Jarvis Retail Advertising Ltd. 100%
Palmer Jarvis & Associates Advertising
(Manitoba) Ltd. .............................. Canada Palmer Jarvis Retail Advertising Ltd. 50%
Palmer Jarvis & Associates (Canada) Advertising Corp. 50%
Palmer Jarvis Advertising Saskatchewan Ltd....... Canada Palmer Jarvis Retail Advertising Ltd. 50%
Palmer Jarvis Retail Advertising Ltd............. Canada Palmer Jarvis & Associates (Canada) Advertising Corp. 100%
Palmer Jarvis & Associates (Canada)
Advertising Corp. ............................ Canada Seabreeze Investments (1983) Ltd. 100%
Seabreeze Investment (1983) Ltd.................. Canada Palmer Jarvis Inc. 100%
DM9 Holding ..................................... Cayman Islands DDB Needham Worldwide Partners, Inc. 100%
Zegers DDB S.A................................... Chile DM9 Holding 40%
Beijing DDB Needham Advertising Co. Ltd.......... China DDB Needham Worldwide Ltd. 51%
Guangzhou DDB Advertising Ltd.................... China DDB Needham (China) Investment Ltd. 100%
DDB Needham Worldwide Colombia Ltda.............. Colombia DDB Needham Worldwide Partners, Inc. 30%
Adcom DDB Needham S.A............................ Costa Rica Adcom/DDB Needham Centroamerica, S.A. 36%
Futura DDB Croatia............................... Croatia DDB Needham S.C.E. 36%
OMD Croatia...................................... Croatia Futura DDB Croatia 18%
BBDO Zagreb 30%
DDB Needham Prague............................... Czech Republic DDB Holding Europe SCA 97%
Rapp & Collins DDBN A/S.......................... Denmark DDB Needham Denmark A/S 49%
E-SCAPE Interactive A/S.......................... Denmark DDB Needham Denmark A/S 39%
Rapp & Collins DDBN A/S 5%
Agitator Reklamebureau........................... Denmark DDB Needham Denmark A/S 39%
DDB Needham Denmark A/S.......................... Denmark DDB Holding Europe SCA 70%
RCM/DDB.......................................... El Salvador Adcom/DDB Needham Centroamerica, S.A. 13%
Brand Sellers DDB Needham A.S.................... Estonia DDB Worldwide Helsinki Oy 65%
S-9
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
Datum Optimum Media Tallinn...................... Estonia Datum Optimum Media Direction Oy 70%
Brand Sellers DDB Needham Oy..................... Finland DDB Worldwide Helsinki Oy 77%
DDB Worldwide Helsinki Oy........................ Finland DDB Holding Europe SCA 77%
Datum Optimum Media Direction Oy................. Finland DDB Worldwide Helsinki Oy 41%
DDB Needham Worldwide Partners, Inc. 29%
Sarajarvi & Hellen Oy............................ Finland DDB Worldwide Helsinki Oy 41%
Diritto Rapp & Collins Oy........................ Finland DDB Worldwide Helsinki Oy 62%
Tagaro! DDB & Co SA.............................. France DDB & Co. Hintzy Heymann S.A. 38%
DDB Interactive.................................. France DDB Communication France S.A. 79%
DDB Lille SNC.................................... France DDB Communication France S.A. 79%
DDB The Way S.A.................................. France DDB Communication France S.A. 63%
DDB Atlantique S.A............................... France DDB Communication France S.A. 79%
La Marque Media SNC.............................. France Optimum Media Direction S.A. 89%
Optimum Media SNC................................ France Optimum Media Direction S.A. 89%
Optimum Media Direction S.A...................... France DDB Communication France S.A. 40%
BBDO Paris S.A. 45%
Media Direction SNC.............................. France Optimum Media Direction S.A. 89%
Productions 32 SNC............................... France DDB Communication France S.A. 52%
SDMS S.A. 17%
DDB & Co. Hintzy Heyman S.A...................... France DDB Communication France S.A. 49%
DDB Europe S.A................................... France DDB Communication France S.A. 79%
Directing/Rapp & Collins SNC..................... France DDB Communication France S.A. 55%
DDB Red SNC...................................... France DDB Communication France S.A. 79%
Marketic Conseil S.A............................. France DDB Communication France S.A. 42%
Piment SNC....................................... France DDB Communication France S.A. 49%
SFV-Perre Contact S.A............................ France SDMS S.A. 30%
DDB Communication France S.A. 32%
DDB Communication France S.A..................... France DDB Holding Europe SCA 79%
DDB Holding Europe SCA........................... France The DDB Needham Worldwide Communications Group, Inc. 100%
Louis XIV S.A.................................... France DDB Communication France S.A. 40%
OP & A S.A....................................... France DDB Communication France S.A. 40%
Noveau Monde..................................... France DDB Communication France S.A. 54%
SDMS S.A......................................... France DDB Communication France S.A. 65%
Printer SNC...................................... France DDB Communication France S.A. 40%
SDMS S.A. 25%
Interimage Rhone Alpes SNC....................... France SDMS S.A. 25%
DDB Communication France S.A. 40%
Interimage....................................... France SDMS S.A. 17%
DDB Communication France S.A. 35%
Groupe 32 SNC.................................... France DDB Communication France S.A. 44%
SDMS S.A. 29%
Rapp & Collins SNC............................... France Directing/Rapp & Collins SNC 28%
Piment SNC 25%
De La Marque A L'Achat........................... France Piment SNC 25%
Fideliting....................................... France Directing/Rapp & Collins SNC 28%
DDB CIE SNC...................................... France DDB Communication France S.A. 78%
DDB SCA.......................................... France DDB Communication France S.A. 79%
Hoffmann, Reiser, Schalt Frankfurt............... Germany Communication Management GmbH Dusseldorf 49%
Optimum Sponsoring Dusseldorf.................... Germany Optimum Media Dusseldorf 90%
Optimum Media Dusseldorf......................... Germany Communication Management GmbH Dusseldorf 90%
Production 32 Dusseldorf......................... Germany Communication Management GmbH Dusseldorf 100%
Jahns Rapp Collins .............................. Germany Communication Management GmbH Dusseldorf 51%
Heye & Partner GmbH 18%
Selby & Co. Hamburg.............................. Germany Communication Management GmbH Dusseldorf 30%
Screen GmbH...................................... Germany Communication Management GmbH Dusseldorf 100%
S-10
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
InterScreen Dusseldorf........................... Germany Screen GmbH 51%
Interscreen Prag (TCH)........................... Germany InterScreen Dusseldorf 51%
DDB Needham Beteiligungsgesellschaft............. Germany Communication Management GmbH Dusseldorf 100%
DDB Needham GmbH Dusseldorf...................... Germany Communication Management GmbH Dusseldorf 100%
Fritsch Heine Rapp Collins Hamburg............... Germany Communication Management GmbH Dusseldorf 87%
Heye & Partner GmbH.............................. Germany DDB Holding Europe SCA 45%
Heye Management Service GmbH..................... Germany Heye & Partner GmbH 23%
Print Munchen GmbH............................... Germany Heye & Partner GmbH 45%
Communication Management GmbH Dusseldorf......... Germany Registrant 100%
Optimum Media Direction Germany GmbH............. Germany Heye & Partner GmbH 11%
BBDO GmbH 40%
Optimum Media Dusseldorf 25%
DDBN (Frankfurt)................................. Germany DDB Needham Beteiligungsgesellschaft 100%
Rapp Collins Consulting.......................... Germany Fritsch Heine Rapp Collins Hamburg 87%
Growth Enterprises Ltd........................... Gibraltar DDB Needham Worldwide Partners 51%
Olympic DDB Needham S.A.......................... Greece DDB Needham Worldwide Partners, Inc. 63%
Tempo Optimum Media Hellas S.A................... Greece Olympic DDB Needham S.A. 45%
TBWA/Producta S.A. 15%
Rapp Collins Hellas S.A.......................... Greece Olympic DDB Needham S.A. 43%
Hypertech........................................ Greece Olympic DDB Needham S.A. 9%
DDB Needham S.C.E................................ Greece Olympic DDB Needham S.A. 63%
Publinac/DDB Needham Guatemala [C.A.]............ Guatemala Adcom/DDB Needham Centroamerica, S.A. 11%
Adcom/DDB Needham ............................... Honduras Adcom/DDB Needham Centroamerica, S.A. 20%
DDB Needham Worldwide Ltd........................ Hong Kong DDB Needham (China) Investment Ltd. 100%
DDB Nexus Ltd.................................... Hong Kong DDB Needham Worldwide Ltd. 49%
DDB Needham Asia Pacific Ltd..................... Hong Kong DDB Needham Worldwide Partners, Inc. 100%
DDB Needham (China) Investment Ltd............... Hong Kong DDB Needham Asia Pacific Ltd. 100%
DDB Needham Advertising Co. (Budapest)........... Hungary DDB Needham Heye & Partner GmbH 40%
DDB Holding Europe SCA 48%
Optimum Media Co................................. Hungary DDB Needham Advertising Co. (Budapest) 77%
TMP Co........................................... Hungary DDB Needham Advertising Co. (Budapest) 22%
Optimum Media Direction.......................... Hungary DDB Needham Advertising Co. (Budapest) 38%
Lexington Bt.................................... Hungary DDB Needham Advertising Co. (Budapest) 44%
Madison Bt. 44%
Madison Bt....................................... Hungary DDB Needham Advertising Co. (Budapest) 88%
MUDRA Communications Ltd......................... India The DDB Needham Worldwide Communications Group, Inc. 10%
DDB Communication S.R.L.......................... Italy DDB Holding Europe SCA 90%
Optimum Media Direction S.R.L.................... Italy DDB Communication S.R.L. 36%
BBDO Italy SpA 40%
Verba DDB S.R.L.................................. Italy DDB Communication S.R.L. 90%
Verba S.R.L...................................... Italy DDB Communication S.R.L. 90%
Grafika S.R.L.................................... Italy DDB Communication S.R.L. 90%
Nadler S.R.L..................................... Italy DDB Communication S.R.L. 90%
TMP Italy S.R.L.................................. Italy DDB Communication S.R.L. 23%
BBDO Italy SpA 25%
Rapp Collins S.R.L............................... Italy DDB Communication S.R.L. 72%
DDB Needham Japan Inc............................ Japan The DDB Needham Worldwide Communications Group, Inc. 100%
DDB Needham DIK Korea............................ Korea DDB Needham Worldwide Partners, Inc. 39%
DDB Worldwide Latvia............................. Latvia DDB Worldwide Helsinki Oy 44%
Brand Sellers DDB Baltic......................... Latvia DDB Worldwide Latvia 44%
Datum Optimum Media Latvia....................... Latvia Datum Optimum Media Direction Oy 22%
SIA Rapp Collins................................. Latvia DDB Worldwide Latvia 37%
DDB & Co......................................... Latvia DDB Worldwide Latvia 30%
Brand Sellers DDB Vilnius........................ Lithuania DDB Worldwide Helsinki Oy 48%
Datum Optimum Media Lithuania.................... Lithuania Datum Optimum Media Direction Oy 36%
S-11
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
Naga DDB SDN BHD................................. Malaysia DDB Needham Asia Pacific Ltd. 30%
Gibert DDB....................................... Mexico Latin Advertising Venture LLC 60%
Griffin Bacal Meranda S De R. L. De C.V.......... Mexico Griffin Bacal Inc. 57%
Result DDB....................................... Netherlands Registrant 85%
Medion B.V....................................... Netherlands Rapp and Collins B.V. 79%
Rapp and Collins B.V............................. Netherlands Result DDB 79%
Eigen Fabrikaat BV............................... Netherlands Result DDB 49%
DDB Needham Holding B.V.......................... Netherlands DDB Holding Europe SCA 100%
The Media Partnership............................ Netherlands Result DDB 16%
FHV/BBDO Creative Marketing Agency N.V. 10%
DDB Needham New Zealand Ltd...................... New Zealand DDB Needham Worldwide Ltd. 60%
DDB Needham Worldwide Ltd........................ New Zealand DDB Needham Worldwide Pty. Ltd. (Australia 100%
Beyond DDB Ltd................................... New Zealand DDB Needham New Zealand Ltd. 60%
Sales Success New Zealand Ltd.................... New Zealand Beyond DDB Ltd. 45%
Rapp Collins Worldwide Ltd....................... New Zealand Beyond DDB Ltd. 60%
DDB Norway A/S.................................. Norway DDB Holding Europe SCA 100%
New Deal DDB A/S................................. Norway DDB Norway A/S 98%
DDB Needham Holding B.V. 2%
Optimum Media A/S................................ Norway New Deal DDB A/S 90%
Big Deal Film A/S................................ Norway New Deal DDB A/S 100%
Real Deal DDB A/S................................ Norway New Deal DDB A/S 50%
Business Deal DDB A/S............................ Norway New Deal DDB A/S 51%
Macaroni A/S..................................... Norway New Deal DDB A/S 50%
Pro Deal A/S..................................... Norway New Deal DDBA/S 100%
New Insight A/S.................................. Norway New Deal DDBA/S 100%
Retail Deal...................................... Norway New Deal DDBA/S 35%
Adcom/DDB Needham Centroamerica, S.A............. Panama DDB Needham Worldwide Partners, Inc. 50%
Adcom/DDB Needham Panama S.A..................... Panama Adcom/DDB Needham Centroamerica, S.A. 3%
AMA DDB Needham Worldwide Inc.................... Philippines DDB Needham Asia Pacific Ltd. 51%
Nowa Agencja Sp. ZO.O............................ Poland DDB Needham Worldwide Partners, Inc. 49%
Optimum Media Sp. ZO.O........................... Poland Nowa Agencja Sp. ZO.O 34%
Polskie Media.................................... Poland Optimum Media Sp. ZO.O. 34%
Twin............................................. Poland Nowa Agencja Sp. ZO.O 49%
Tempo Media Agencia de Meos, Publicidade S.A..... Portugal Guerriero DDB Publicidade, Ltda. 28%
BBDO Portugal Agencia de Publicidad, Lda 32%
The Media Partnership Ltda....................... Portugal Guerriero DDB Publicidade, Ltda. 18%
BBDO Portugal Agencia de Publicidad, Lda 20%
Guerriero DDB Publicidade, Ltda.................. Portugal DDB Holding Europe SCA 70%
Olympic DDB Romania SRL.......................... Romania DDB Needham S.C.E. 63%
DDB Needham Worldwide GAF Pte. Ltd............... Singapore DDB Needham Asia Pacific Ltd. 83%
DDB Needham Worldwide Bratislava................. Slovak Republic DDB Needham Worldwide Partners, Inc. 80%
Tandem DDB, S.A.................................. Spain The DDB Needham Worldwide Communications Group, Inc. 7%
Registrant 89%
Tandem Campmany Guasch DDB, S.A.................. Spain Registrant 2%
Tandem DDB, S.A. 94%
Optimum Media S.A................................ Spain Tandem Campmany Guasch DDB, S.A. 94%
Instrumens/Rapp & Collins S.A.................... Spain Tandem DDB, S.A. 96%
Screen SA (Barcelona)............................ Spain Screen GmbH 100%
A Toda Copia S.A................................. Spain Tandem DDB, S.A. 96%
The Media Partnership S.A........................ Spain Tandem DDB, S.A. 24%
Bomberos A.B..................................... Sweden Paradiset DDB A.B. 39%
Mercator Trade Marketing A.B..................... Sweden Paradiset DDB A.B. 39%
Paradiset DDB A.B................................ Sweden DDB Worldwide Sweden A.B. 76%
DDB Worldwide Sweden A.B......................... Sweden DDB Needham Worldwide Partners, Inc. 100%
Seiler DDB AG.................................... Switzerland DDB Needham Holding AG 30%
S-12
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
DDB Needham Holding AG........................... Switzerland DDB Holding Europe SCA 100%
DDB Needham Worldwide Ltd........................ Taiwan DDB Needham Asia Pacific Ltd. 90%
Spaulding & Hawi DDB Advertising Co., Ltd........ Thailand The DDB Needham Worldwide Communications Group, Inc. 100%
Medina/Turgul DDB................................ Turkey DDB Holding Europe SCA 30%
Slogan DDB....................................... Uruguay DDB Needham Worldwide Partners Inc. 40%
BMP DDB Ltd...................................... United Kingdom Omnicom UK Ltd. 100%
Optimum Media Direction Ltd...................... United Kingdom Omnicom UK Ltd. 100%
Outdoor Connection Ltd........................... United Kingdom BMP DDB Ltd. 33%
Solutions in Media Ltd........................... United Kingdom Omnicom UK Ltd. 100%
Griffin Bacal Limited............................ United Kingdom Prism International Ltd. 100%
Target DDB Publicidad C.A........................ Venezuela DDB Needham Worldwide Partners, Inc. 49%
Baxter, Gurian & Mazzei, Inc..................... California Health & Medical Communications, Inc. 100%
Harrison Wilson & Associates, Inc................ California Registrant 100%
Alcone Marketing Group, Inc...................... California Registrant 100%
Upstart Communications, Inc...................... California Fleishman-Hillard Inc. 100%
Integer Group, L.L.C............................. Colorado C-D Acquisitions Inc. 100%
ACCEL Healthcare L.L.C........................... Delaware Registrant 60%
Copithorne & Bellows Public Relations Inc........ Delaware Registrant 100%
C&B/Interactive Public Relations ................ Delaware Copithorne & Bellows Public Relations, Inc. 100%
Team South....................................... Delaware Rapp Collins Worldwide Holdings Inc. 100%
Quantum Plus Corp................................ Delaware Rapp Collins Worldwide Holdings Inc. 100%
Clark & Weinstock Inc............................ Delaware Registrant 100%
Ketchum New York Advertising Holdings, Inc....... Delaware Ketchum Communications Holdings, Inc. 100%
Ketchum Inc...................................... Delaware Registrant 100%
Susan A. Thomas Inc.............................. Delaware Ketchum Inc. 100%
Ketchum International, Inc....................... Delaware Registrant 100%
Creative Media L.L.C............................. Delaware DAS Holdings Inc. 99%
Goodby, Silverstein & Partners Holding Inc. 1%
Doremus & Company................................ Delaware BBDO Worldwide Inc. 100%
Doremus Printing Corp............................ Delaware Doremus & Company 100%
Porter Novelli Inc............................... Delaware Doremus & Company 100%
DAS Holdings Inc................................. Delaware Registrant 100%
Interbrand Holdings Inc.......................... Delaware Omnicom UK Limited 100%
Rapp Collins Worldwide Inc. (DE)................. Delaware Rapp Collins Worldwide Holdings Inc. 100%
Optima Direct Inc................................ Delaware Registrant 100%
Merkley Newman Harty, Inc........................ Delaware Registrant 100%
NN Agency Inc.................................... Delaware Registrant 100%
Focus Agency Limited Partnership................. Delaware NN Agency Inc. 99%
C-D Acquisitions Inc. 1%
Gavin Anderson & Company Worldwide Inc........... Delaware Registrant 100%
Bernard Hodes Advertising Inc.................... Delaware Registrant 100%
Kragie Newell Advertising Inc.................... Delaware Integer Group, L.L.C. 100%
Lauren Graphics, Inc............................. Delaware Registrant 100%
Rapp Collins Worldwide Limited Partnership....... Delaware Rapp Collins Worldwide Holdings Inc. 99%
Rapp Collins Worldwide GP Inc. 1%
Rapp Collins Worldwide GP Inc.................... Delaware Registrant 100%
Rapp Collins Worldwide Holdings Inc.............. Delaware Registrant 100%
Interbrand Zintzmeyer & Lux Inc.................. Delaware Interbrand Holdings Inc. 100%
Millsport L.L.C.................................. Delaware DAS Holdings Inc. 25%
Worldwide Marketing Resources Inc................ Delaware Registrant 100%
Ketchum Directory Advertising Inc................ Delaware Registrant 100%
Fleishman-Hillard Inc............................ Delaware Registrant 100%
TLP East L.L.C................................... Delaware TLP, Inc. 75%
Sheppard Associates Inc.......................... Delaware Registrant 100%
Tic Toc, The Imagination Company L.L.C........... Delaware Registrant 75%
S-13
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
Duffy Wall & Associates, Inc..................... District of Columbia Fleishman-Hillard Inc. 100%
Martec C I Group, Inc............................ Florida Diversified Agency Services Holding 51%
Crescent Communications Inc...................... Georgia Ketchum Inc. 100%
Frank J. Corbett, Inc............................ Illinois Health & Medical Communications, Inc. 100%
HRC Illinois Inc................................. Illinois Rapp Collins Worldwide Holdings Inc. 100%
The Russ Reid Company, Inc....................... Illinois DAS Holdings Inc. 47%
Brodeur & Partners Inc........................... Massachusetts Registrant 100%
Meridian Technology Marketing Inc................ Massachusetts Registrant 100%
Fleishman-Hillard Missouri Poll, Inc............. Missouri Fleishman-Hillard Inc. 100%
Harrison Wilson & Associates, Inc................ New Jersey Registrant 100%
Gerstman + Meyers Inc............................ New York Interbrand Corporation 100%
RC Communications, Inc........................... New York Registrant 99%
Health & Medical Communications, Inc............. New York BBDO Worldwide Inc. 100%
Gavin Anderson & Company Inc..................... New York Gavin Anderson & Company Worldwide Inc. 100%
Lyons/Lavey/Nickel/Swift, Inc.................... New York Health & Medical Communications, Inc. 100%
Interbrand Corporation........................... New York Registrant 100%
Health Science Communications Inc................ New York Registrant 100%
Kallir, Philips, Ross, Inc....................... New York Registrant 100%
Shain Colavito Pensabene Direct, Inc............. New York Registrant 100%
Harrison & Star, Inc............................. New York Registrant 100%
Rapp & Collins USA Inc........................... New York Registrant 100%
Della Femina/Jeary and Partners.................. New York Ketchum New York Advertising Holdings, Inc. 49%
Gavin Anderson & Company (Japan), Inc............ New York Registrant 100%
Stern Advertising, Inc........................... Ohio Registrant 100%
Ketchum Communications, Inc...................... Pennsylvania Ketchum Communications Holdings, Inc. 100%
Ketchum Communications Holdings, Inc............. Pennsylvania Registrant 100%
GMR Group Inc.................................... Pennsylvania Registrant 60%
Case Dunlap...................................... Texas Registrant 100%
TLP, Inc......................................... Texas Registrant 100%
Gary M. Reynolds and Associates, Inc............. Wisconsin Registrant 100%
Avalos & Bourse, S.A............................. Argentina Diversified Agency Services Holding 30%
Rapp Collins Argentina........................... Argentina Diversified Agency Services Holding 51%
Alcone Marketing Group Asia Pacific.............. Australia Alcone Marketing Group, Inc. 100%
Gavin Anderson & Company Pty Ltd................. Australia Gavin Anderson & Company Worldwide Inc. 100%
Canberra Liaison................................. Australia Gavin Anderson & Company Pty Ltd. 70%
PPD Sales Services GmbH.......................... Austria PPD Sales Services GmbH 100%
GPC Market Access Europe S.A..................... Belgium GPC Market Access Group Ltd. 42%
GPC Tennoc Limited 58%
CPM Belgium S.A.................................. Belgium Promotess Holdings S.A. 100%
Fleishman-Hillard Brussels....................... Belgium Fleishman-Hillard Inc. 100%
Kallir, Phillips, Ross S.P.R.L................... Belgium The Promotions Partnership Limited 100%
Promotess Holdings S.A........................... Belgium Diversified Agency Services Ltd. 100%
Data Company Acquisition Inc..................... Brazil DAS Holdings Inc. 80%
DM Company S.A. de C.V........................... Brazil Data Company Acquisition Inc. 80%
Rapp Collins Brazil.............................. Brazil Registrant 70%
Langdon Starr Inc................................ Canada Omnicom Canada Inc. 20%
Fleishman-Hillard Canada, Inc.................... Canada Fleishman-Hillard Inc. 100%
GPC International Holdings Inc................... Canada Registrant 100%
GPC Canada Inc................................... Canada GPC International Holdings Inc. 100%
Specialized Communications Inc................... Canada GPC International Holdings Inc. 100%
Intercon Consultants Ltd......................... Canada GPC Canada Inc. 100%
Ontario Inc...................................... Canada GPC Canada Inc. 100%
Storgaard & Associates Inc....................... Canada GPC Canada Inc. 100%
Storgaard & Associates Design Group Inc.......... Canada GPC Canada Inc. 100%
D.R. Harley Consultants Limited.................. Canada GPC Canada Inc. 100%
S-14
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
Factor Research Group Inc........................ Canada D.R. Harley Consultants Limited 100%
Neo Communications Inc........................... Canada GPC Canada Inc. 100%
Michele Bazin Inc................................ Canada GPC Canada Inc. 100%
Canada Inc....................................... Canada GPC Canada Inc. 100%
Concordia Communication et. Affaires
Publiques Inc ................................ Canada GPC Canada Inc. 50%
Canada Inc. 25%
Michele Bazin Inc. 25%
Diversified Agency Services Holding.............. Cayman Islands Registrant 100%
Sales Rapp Collins Chile......................... Chile Registrant 30%
Pathways Marketing Consultants (Shanghai) Co. Ltd. China Sinowin Industrial Ltd. 51%
Fleishman-Hillard Link, Ltd...................... China Fleishman-Hillard Missouri Poll, Inc. 65%
Sinowin Industrial Ltd........................... China Registrant 51%
PPD Marketing Services Spol.sr.o................. Czech Republic PPD Sales Services GmbH & Co. KG 51%
PPD Marketing Services GmbH & Co. KG 49%
Mapi Research Institute SarL..................... France Diversified Agency Services Ltd. 50%
Institute Opinion Patient S A.................... France Adelphi Group Limited 50%
Pro Valorem...................................... France Gavin Anderson & Company (France) S.A. 100%
Ketchum Advertising France....................... France Ketchum International, Inc. 62%
KPRW Paris....................................... France Ketchum International, Inc. 79%
Fleishman-Hillard France......................... France Fleishman-Hillard Inc. 99%
Arsenal S.A...................................... France Omnicom UK Ltd. 60%
CPM France S.A................................... France DAS France Ltd. 50%
Groupe IPC S.A. 50%
Services Groupe IPC.............................. France CPM France S.A. 10%
GBW Conseil S.A. 10%
Prise Directe SARL 10%
Resultats Groupe IPC SARL 10%
Groupe IPC S.A. 10%
Groupe IPC S.A................................... France DAS France Ltd. 100%
Prise Direct SARL................................ France Groupe IPC S.A. 50%
DAS France Ltd. 50%
GBW Conseil S.A.................................. France Groupe IPC S.A. 74%
DAS France Ltd. 26%
Resultats Groupe IPC SARL........................ France Groupe IPC S.A. 50%
DAS France Ltd. 50%
Parmenide Porter Novelli S.A..................... France DAS France Ltd. 70%
Analyse Informatique des Donnees S.A............. France DAS France Ltd. 60%
Bernard Hodes Advertising S.A.................... France DAS France Ltd. 40%
BDDP Corporate S.A. 38%
Gavin Anderson & Company Worldwide GmbH.......... Germany BBDO Worldwide Europe GmbH 92%
TARGIS Agentur fur Kommunikation GmbH............ Germany Diversified Agency Services Ltd. 85%
Fleishman-Hillard Germany GmbH................... Germany Fleishman-Hillard Inc. 70%
Ketchum Public Relations GmbH.................... Germany Ketchum International, Inc. 100%
Advantage GmbH................................... Germany Doremus & Company 35%
Interbrand Zintzmeyer & Lux GmbH................. Germany Interbrand Zintermeyer & Lux A.G. 100%
Diversified Agency Services GmbH................. Germany Registrant 98%
Diversified Agency Services Ltd. 2%
CPM International GmbH........................... Germany Diversified Agency Services GmbH 98%
CPM United Kingdom Ltd. 2%
PPD Management GmbH.............................. Germany Diversified Agency Services GmbH 100%
PPD Sales Services GmbH & Co. KG................. Germany CPM International GmbH 96%
PPD Management GmbH 4%
PPD Marketing Services GmbH & Co. KG............. Germany CPM International GmbH 96%
PPD Management GmbH 4%
CCS Handelsservice GmbH.......................... Germany PPD Sales Services GmbH & Co. KG 40%
S-15
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
Plus Promotion Verkaufsforderungs mbh............ Germany PPD Marketing Services GmbH & Co. KG 20%
Gavin Anderson & Company (H.K.) Ltd.............. Hong Kong Gavin Anderson & Company Worldwide Inc. 100%
Doremus Hong Kong Ltd............................ Hong Kong Doremus & Company 100%
Ketchum NEWSCAN Public Relations Ltd............. Hong Kong Ketchum International, Inc. 30%
Fleishman-Hillard Hong Kong, Ltd................. Hong Kong Fleishman-Hillard Inc. 100%
Diversified Agency Services Ltd.................. Hong Kong Registrant 100%
Rapp Collins Worldwide (Hong Kong) Ltd........... Hong Kong Diversified Agency Services Ltd. 100%
Bernard Hodes Advertising (Hong Kong) Ltd........ Hong Kong Diversified Agency Services Ltd. 100%
Bentley Communications Ltd....................... Hong Kong DDB Needham Asia Pacific Ltd. 28%
Hong Kong Diversified Agency Services Ltd. 30%
BPR Advertising Co., Ltd......................... Hong Kong DDB Needham Asia Pacific Ltd. 28%
Diversified Agency Services Ltd. 30%
BPR Staff Options Co. Ltd........................ Hong Kong DDB Needham Asia Pacific Ltd. 33%
Diversified Agency Services Ltd. 35%
BC Staff Options Co. Ltd......................... Hong Kong DDB Needham Asia Pacific Ltd. 33%
Diversified Agency Services Ltd. 35%
PPD Marketing Services Szolgaltato kft........... Hungary PPD Sales Services GmbH & Co. KG 50%
PPD Marketing Services GmbH & Co. KG 50%
Counter Products Marketing (Ireland) Ltd......... Ireland CPM United Kingdom Ltd. 90%
Fleishman-Hillard Saunders Limited............... Ireland Fleishman-Hillard Inc. 41%
Westland Ltd..................................... Ireland Fleishman-Hillard Saunders Limited 41%
Interbrand Italia Srl............................ Italy Omnicom UK Ltd. 43%
Inventa Srl...................................... Italy Interbrand Italia Srl 26%
Omnicom UK Ltd. 17%
CPM Italia Srl................................... Italy Interbrand Italia Srl 43%
Ketchum Public Relations SRL..................... Italy Ketchum International, Inc. 41%
Fleishman-Hillard Italia SpA..................... Italy Fleishman-Hillard Inc. 90%
Image Time SrL................................... Italy Omnicom UK Ltd. 30%
PRAP Japan Inc................................... Japan Ketchum International, Inc. 15%
Fleishman-Hillard Japan K.K...................... Japan Fleishman-Hillard Inc. 90%
Kabushiki Kaisha Interbrand Japan................ Japan Interbrand Group Ltd. 74%
Diversified Agency Services B.V. 26%
Rapp Collins K.K................................. Japan DAS Holdings Inc. 80%
Targis K.K....................................... Japan Registrant 67%
Interbrand Korea Inc............................. Korea Interbrand Group Ltd. 100%
Fleishman-Hillard Mexico, S.A. de C.V............ Mexico Fleishman-Hillard Inc. 100%
Ketchum Mexico S.A. de C.B....................... Mexico Ketchum International, Inc. 100%
Diversified Agency Services Mexico S.A. de C.V... Mexico Registrant 100%
Interbrand Mexico, S.A. de C.V................... Mexico Diversified Agency Services Mexico S.A. de C.V. 100%
Rapp Collins Mexico.............................. Mexico Rapp Collins Worldwide Holdings Inc. 100%
Martec S.A. DE C.V............................... Mexico Diversified Agency Services Holding 51%
CPM Nederland Field Marketing B.V................ Netherlands Omnicom UK Ltd. 100%
Diversified Agency Services B.V.................. Netherlands Interbrand Group Ltd. 100%
Schoep & van der Toorn B.V....................... Netherlands Diversified Agency Services B.V. 65%
PPD Marketing Services Sp.z.o.o.................. Poland PPD Sales Services GmbH & Co. KG 51%
PPD Marketing Services GmbH & Co. KG 49%
Gavin Anderson & Company (Singapore) Pte. Ltd.... Singapore Gavin Anderson & Company Worldwide Inc. 60%
Interbrand Pte. Ltd.............................. Singapore Registrant 100%
Fleishman-Hillard Hickson Pte Ltd................ Singapore Fleishman-Hillard Inc. 80%
PPD Marketing Services Spol.sr.o................. Slovak Republic PPD Sales Services GmbH & Co. KG 51%
PPD Marketing Services GmbH & Co. KG 49%
Comunicacion Empresarial SL...................... Spain Diversified Agency Services Ltd. 25%
CPM Targis S.A................................... Spain Adding Omnicom S.L. 20%
Marketing Aplicado SA 29%
SEIS Madrid...................................... Spain Ketchum International, Inc. 30%
S-16
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
Adding Omnicom S.L............................... Spain Diversified Agency Services Ltd. 51%
Marketing Aplicado SA............................ Spain Omnicom UK Ltd. 49%
Interbrand Zintermeyer & Lux A.G................. Switzerland Omnicom UK Ltd. 100%
Adelphi Group Limited............................ United Kingdom Diversified Agency Services Ltd. 100%
Adelphi Communications Limited................... United Kingdom Adelphi Group Limited 100%
Adelphi Group Products Limited................... United Kingdom Adelphi Group Limited 100%
Adelphi International Research Limited........... United Kingdom Adelphi Group Limited 100%
Countrywide Communications (London) Ltd.......... United Kingdom Countrywide Porter Novelli Ltd. 100%
Countrywide Communications (Scotland) Ltd........ United Kingdom Countrywide Porter Novelli Ltd. 75%
Affinity Consulting Ltd.......................... United Kingdom Countrywide Porter Novelli Ltd. 100%
CPM Mobile Marketing Ltd......................... United Kingdom CPM United Kingdom Ltd. 100%
CPM Field Marketing Ltd.......................... United Kingdom Omnicom UK Ltd. 100%
CPM International Group Ltd...................... United Kingdom Prism International 100%
Visitation Field Marketing Limited............... United Kingdom CPM International Group Ltd. 100%
Field Marketing Solutions Limited................ United Kingdom Diversified Agency Services Ltd. 100%
Health Science TARGIS Limited.................... United Kingdom Diversified Agency Services Ltd. 100%
Countrywide Porter Novelli Ltd................... United Kingdom Diversified Agency Services Ltd. 100%
DAS Financial Services Ltd....................... United Kingdom Diversified Agency Services Ltd. 75%
BBDO Canada Inc. 25%
Medi Cine International plc...................... United Kingdom Diversified Agency Services Ltd. 100%
WWAV Rapp Collins Group Ltd...................... United Kingdom Diversified Agency Services Ltd. 100%
Gavin Anderson (UK) Ltd.......................... United Kingdom Diversified Agency Services Ltd. 100%
Rapp Collins Europe Ltd.......................... United Kingdom Diversified Agency Services Ltd. 100%
GPC Group Limited................................ United Kingdom Diversified Agency Services Ltd. 85%
GPC International Holdings Inc. 15%
Doremus & Company Ltd............................ United Kingdom Diversified Agency Services Ltd. 100%
Prism International Ltd.......................... United Kingdom Option One Limited 100%
Claydon Heeley International Ltd................. United Kingdom Diversified Agency Services Ltd. 100%
Omnicom UK Ltd................................... United Kingdom Diversified Agency Services Ltd. 100%
Copithorne & Bellows Public Relations Ltd........ United Kingdom DAS Property Development Ltd. 100%
Government Policy Consultants Ltd................ United Kingdom GPC Group Limited 100%
GPC Scotland Limited............................. United Kingdom Government Policy Consultants Limited 100%
GPC Market Access Europe S.A..................... United Kingdom GPC Group Limited 36%
GPC Tennoc Limited 49%
GPC Tennoc Limited............................... United Kingdom GPC Group Limited 85%
Interbrand UK Ltd................................ United Kingdom Interbrand Group Ltd. 100%
Ketchum Group Limited............................ United Kingdom Omnicom UK Ltd. 100%
Ketchum Life Limited............................. United Kingdom Ketchum Group Limited 100%
Perception Design Ltd............................ United Kingdom Ketchum Group Limited 51%
Omnicom UK Ltd. 49%
Ketchum Limited.................................. United Kingdom Ketchum Group Limited 85%
Omnicom UK Ltd. 15%
Ketchum Sponsorship Limited...................... United Kingdom Ketchum Group Limited 85%
Omnicom UK Ltd. 15%
Markforce Associates Ltd......................... United Kingdom Interbrand Group Ltd. 100%
Interbrand Newell and Sorrell Ltd................ United Kingdom Interbrand Group Ltd. 100%
Newell & Sorell Inc.............................. United Kingdom Interbrand Newell and Sorrell Ltd. 100%
Jones Mason Barton Antenen Limited............... United Kingdom Diversified Agency Services Ltd. 50%
United Kingdom BMP DDB Limited 50%
CPM United Kingdom Limited....................... United Kingdom Omnicom UK Ltd. 100%
Specialist Publications (UK) Ltd................. United Kingdom Omnicom UK Ltd. 100%
Premier Magazines Ltd............................ United Kingdom Omnicom UK Ltd. 100%
Paling Walters Targis Ltd........................ United Kingdom Omnicom UK Ltd. 100%
Alcone Marketing Group Ltd....................... United Kingdom Omnicom UK Ltd. 100%
DAS France Ltd................................... United Kingdom Omnicom UK Ltd. 100%
S-17
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
DAS Property Development Ltd..................... United Kingdom Omnicom UK Ltd. 100%
Smythe Dorward Lambert Ltd....................... United Kingdom Omnicom UK Ltd. 100%
Brodeur A Plus Group Ltd......................... United Kingdom Diversified Agency Services Ltd. 82%
Omnicom UK Ltd. 18%
Porter Novelli Ltd............................... United Kingdom Omnicom UK Ltd. 100%
Bernard Hodes Advertising Limited................ United Kingdom Prism International Ltd. 100%
Macmillan Davies Hodes Consultants Ltd........... United Kingdom Prism International Ltd. 100%
Diversified Agency Services Ltd.................. United Kingdom DAS International Limited 100%
The Computing Group Ltd.......................... United Kingdom WWAV Rapp Collins Group Ltd. 100%
Data Warehouse Ltd............................... United Kingdom WWAV Rapp Collins Group Ltd. 75%
WWAV Rapp Collins Ltd............................ United Kingdom WWAV Rapp Collins Group Ltd. 100%
WWAV Rapp Collins Media Ltd...................... United Kingdom WWAV Rapp Collins Group Ltd. 100%
WWAV Rapp Collins North Ltd...................... United Kingdom WWAV Rapp Collins Group Ltd. 100%
HLB Ltd.......................................... United Kingdom WWAV Rapp Collins Group Ltd. 100%
WWAV Rapp Collins West Limited................... United Kingdom WWAV Rapp Collins Group Ltd. 100%
WWAV Rapp Collins Scotland Ltd................... United Kingdom WWAV Rapp Collins Group Ltd. 100%
DAS International Limited........................ United Kingdom Registrant 100%
Fleishman-Hillard U.K. Ltd....................... United Kingdom DAS International Limited 100%
Fleishman-Hillard Europe Ltd..................... United Kingdom Fleishman-Hillard U.K. Ltd. 90%
TBWA Worldwide Inc............................... New York Registrant 100%
TBWA Chiat/Day Inc............................... Delaware Registrant 100%
Ketchum Advertising Inc.......................... Delaware Registrant 100%
Advertising US Holdings Inc...................... Delaware Registrant 100%
Gold Greenlees Trott US Holdings Inc............. Delaware Advertising US Holdings Inc. 100%
GGT USA / South Inc.............................. Delaware Gold Greenlees Trott US Holdings Inc. 100%
G&S Associates Inc............................... Texas Gold Greenlees Trott US Holdings Inc. 100%
Martin-Williams Inc.............................. Minnesota Gold Greenlees Trott US Holdings Inc. 100%
Savaglio TBWA y Associados S.A................... Argentina Registrant 30%
TBWA Holdings Australasia Pty Ltd................ Australia Registrant 100%
Whybin TBWA & Partners Pty. Ltd.................. Australia TBWA Holdings Australasia Pty Ltd 60%
Whybin Lawrence TBWA............................. Australia TBWA Holdings Australasia Pty Ltd 51%
TBWA/TELL Werbeagentur G.m.b.H................... Austria Registrant 70%
TBWA/GV Group S.A................................ Belgium TBWA International B.V. 75%
TBWA S.A. (Brussels)............................. Belgium TBWA/GV Group S.A. 75%
GV Company S.A................................... Belgium TBWA/GV Group S.A. 75%
Motu Nui S.A..................................... Belgium TBWA/GV Group S.A. 75%
Media KnowHow S.A................................ Belgium TBWA/GV Group S.A. 75%
4ReAL S.A........................................ Belgium TBWA/GV Group S.A. 60%
Marketing & Entertainment S.A.................... Belgium TBWA/GV Group S.A. 75%
Concept+......................................... Belgium TBWA S.A. (Brussels) 59%
TBWA Propaganda Limitada......................... Brazil Registrant 70%
TBWA Sofia o.o.d................................. Bulgaria Registrant 55%
Stringer Veroni Ketchum.......................... Canada Omnicom Canada Inc. 67%
Ketchum International, Inc. 33%
Frederick & Valenzula TBWA Disenadores
Asociados S.A. ................................ Chile Registrant 30%
Shanghai TBWA Lee Davis Advertising Ltd.......... China TBWA Lee Davis Advertising Ltd. 34%
TBWA Publicidad ................................. Costa Rica Registrant 25%
TBWA Zagreb d.o.o................................ Croatia Registrant 90%
Grade/TBWA s.r.o................................. Czech Republic Registrant 30%
Hager Praha s.r.o................................ Czech Republic Registrant 60%
MAX TBWA s.r.o................................... Czech Republic Registrant 51%
TBWA Reklamebureau A/S........................... Denmark Registrant 85%
Eliasson & Jesting/TBWA Dialog................... Denmark TBWA Reklamebureau A/S 43%
Paltemaa Huttunen Santala TBWA Oy................ Finland Registrant 34%
BDDP Worldwide S.A............................... France TBWA Worldwide Inc. 100%
S-18
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
BDDP France S.A.................................. France BDDP Worldwide S.A. 100%
BDDP @ TBWA S.A.................................. France BDDP France S.A. 98%
BDDP & Fils S.A.................................. France BDDP France S.A. 74%
Question d'Edition S.A........................... France BDDP France S.A. 84%
SEO "Achat d'Espace" S.A......................... France BDDP Worldwide S.A. 100%
Jump S.A......................................... France BDDP Worldwide S.A. 82%
Ananas S.A.R.L................................... France Jump S.A. 65%
Agence Gagnol S.A................................ France Jump S.A. 81%
Groupe Jump S.A.................................. France Jump S.A. 73%
Nouvelle Vague S.A............................... France BDDP Worldwide S.A. 62%
Nickel S.A....................................... France BDDP Worldwide S.A. 87%
ALS/Tonic S.A.................................... France BDDP Worldwide S.A. 88%
BDDP Corporate S.A............................... France BDDP Worldwide S.A. 96%
Agence BDDP Corporate S.A........................ France BDDP Corporate S.A. 96%
Allo - Carrieres S.A............................. France Agence BDDP Corporate S.A. 96%
Compagnie Corporate Gestion Deleguee S.A......... France Agence BDDP Corporate S.A. 96%
Auditoire S.A.................................... France BDDP Corporate S.A. 96%
Textuel S.A...................................... France BDDP Corporate S.A. 96%
Les Editions Textuel S.A......................... France BDDP Corporate S.A. 28%
Textuel S.A. 5%
BDDP & Tequila Interactive S.A................... France BDDP Corporate S.A. 48%
Tequila France S.A. 48%
CPM Rhone - Alpes S.A.R.L........................ France BDDP Corporate S.A. 48%
ASA S.A.R.L...................................... France BDDP Corporate S.A. 96%
Tequila France S.A............................... France BDDP Worldwide S.A. 95%
The Brand Company S.A............................ France BDDP Worldwide S.A. 88%
The Brand Company Archi S.A.R.L.................. France The Brand Company S.A. 88%
Euromix Media S.A.R.L............................ France BDDP Worldwide S.A. 100%
TJP & Associates S.A............................. France BDDP Worldwide S.A. 100%
The Media Partnership France S.A................. France BDDP Worldwide S.A. 17%
The Media Partnership Research S.A............... France The Media Partnership France S.A. 17%
TBWA (Deutschland) Holding GmbH.................. Germany TBWA International B.V. 100%
TBWA Werbeagentur GmbH........................... Germany TBWA (Deutschland) Holding GmbH 100%
TBWA Dusseldorf GmbH............................. Germany TBWA Werbeagentur GmbH 100%
BDDP Communications GmbH......................... Germany BDDP Worldwide SA 100%
Godenrath Preiswerk/BDDP Werbeagentur GmbH....... Germany BDDP Communications GmbH 85%
Wundrich Meissen Creativ Consulting GmbH......... Germany Godenrath Preiswerk/BDDP Werbeagentur GmbH 85%
Production Company Stuttgart GmbH................ Germany Godenrath Preiswerk/BDDP Werbeagentur GmbH 85%
Planet Communications Germany.................... Germany Ketchum International Inc. 65%
TBWA/Producta S.A................................ Greece Registrant 51%
TBWA Lee Davis Advertising Ltd................... Hong Kong Registrant 76%
TBWA Thompson Ltd................................ Hong Kong Registrant 100%
TBWA Budapest Reklam Mugynokseg Kft.............. Hungary Registrant 75%
TBWA Anthem Private Limited...................... India Registrant 51%
Radeus Advertising Private Limited............... India TBWA Anthem Private Limited 51%
Yehoshua TBWA Advertising & Marketing Ltd........ Israel TBWA International B.V. 25%
TBWA Italia S.P.A. (Milan)....................... Italy TBWA International B.V. 100%
BDDP S.P.A....................................... Italy BDDP Worldwide SA 100%
TBWA Nippo....................................... Japan TBWA Worldwide Inc. 77%
Nissan Graphic Arts.............................. Japan TBWA Worldwide Inc. 67%
Tae Kwang Multi - Ad Ltd......................... Korea TBWA Worldwide Inc. 70%
Teran TBWA Publicidad............................ Mexico Registrant 30%
TBWA International B.V........................... Netherlands Registrant 100%
Data Company B.V................................. Netherlands TBWA International B.V. 100%
E-Company B.V.................................... Netherlands TBWA International B.V. 51%
S-19
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
Mako/Bovaco B.V.................................. Netherlands TBWA International B.V. 57%
Sponsor Company B.V.............................. Netherlands TBWA International B.V. 20%
Multicom Direct Marketing & Advertising B.V...... Netherlands TBWA International B.V. 100%
TBWA Campaign Company B.V........................ Netherlands TBWA International B.V. 70%
Dresme Van Dijk Partners B.V..................... Netherlands TBWA International B.V. 100%
Direct Company B.V............................... Netherlands Dresme Van Dijk Partners B.V. 100%
HVR/Bruns van der Wijk B.V. ..................... Netherlands TBWA International B.V. 59%
Neuerburg PR B.V................................. Netherlands TBWA International B.V. 15%
TBWA/ Neth-work B.V. ............................ Netherlands TBWA International B.V. 50%
TBWA Reklame & Marketing B.V..................... Netherlands TBWA International B.V. 100%
Grant Tandy B.V.................................. Netherlands TBWA International B.V. 100%
CO/CIE B.V....................................... Netherlands BDDP Worldwide S.A. 51%
BDDP Corporate S.A. 47%
BDDP & Partners B.V.............................. Netherlands BDDP Worldwide S.A. 100%
ARA/BDDP B.V..................................... Netherlands BDDP & Partners B.V. 100%
BDDP Nederland B.V............................... Netherlands BDDP & Partners B.V. 100%
ARA/BDDP Groep B.V............................... Netherlands BDDP Nederland B.V. 100%
Bovil B.V........................................ Netherlands ARA/BDDP Groep B.V. 70%
Navar BDDP B.V................................... Netherlands ARA/BDDP Groep B.V. 100%
TBWA Reklamebyra A.S............................. Norway TBWA International B.V. 55%
TBWA Dialog A.S.................................. Norway TBWA Reklamebyra A.S. 55%
Immo Polska Sp. zo.o............................. Poland Registrant 76%
TBWA Polska Sp. zo.o............................. Poland Registrant 76%
TBWA Warszawa Sp. zo.o........................... Poland Registrant 73%
TBWA-EPG Publicidade, Ltd........................ Portugal Registrant 59%
TBWA Bucharest s.r.l............................. Romania Registrant 90%
TBWA Singapore Pte Ltd........................... Singapore Registrant 82%
Tequila Asia Pacific............................. Singapore Tequila UK Limited 73%
TBWA Bratislava spol s.r.o....................... Slovakia Registrant 90%
Hunt Lascaris TBWA Holdings (Pty) Limited........ South Africa TBWA International B.V. 20%
Registrant 80%
Hunt Lascaris TBWA Johannesberg (Pty) Limited.... South Africa Hunt Lascaris TBWA Holdings (Pty) Limited 100%
Hunt Lascaris TBWA Cape (Pty) Limited............ South Africa Hunt Lascaris TBWA Holdings (Pty) Limited 85%
Hunt Lascaris TBWA (Durban) (Pty) Limited........ South Africa Hunt Lascaris TBWA Holdings (Pty) Limited 80%
Paroden Inv Holdings (Pty) Limited............... South Africa TBWA International B.V. 100%
Schalit Shipley Nethwork......................... South Africa Registrant 20%
TBWA/ Neth-work B.V. 10%
Paroden Inv Holdings (Pty) Limited 40%
Specialist Communications Services............... South Africa Registrant 51%
Ad Active S.A. (Pty) Limited..................... South Africa Specialist Communications Services 26%
Rapp Collins S.A. (Pty) Limited.................. South Africa Specialist Communications Services 41%
Tool S.A. (Pty) Limited.......................... South Africa Specialist Communications Services 31%
South Africa Advertising Investments
(Pty) Limited ................................ South Africa Registrant 60%
Gavin Reddy Horn (Pty) Limited................... South Africa South Africa Advertising Investments (Pty) Limited 32%
Gavin Reddy Horn Cape............................ South Africa Gavin Reddy Horn (Pty) Limited 32%
Media Direciton S.A. (Proprietary) Limited....... South Africa Registrant 51%
TBWA Espana S.A.................................. Spain TBWA International B.V. 95%
TBWA Sweden A.B.................................. Sweden Registrant 100%
TBWA Sweden K.B.................................. Sweden TBWA Sweden A.B. 51%
TBWA GGK A.G..................................... Switzerland TBWA International B.V. 51%
Impuls BDDP A.G.................................. Switzerland BDDP & Partners B.V. 70%
TBWA Next & Triplet Advertising Co. Limited...... Thailand Registrant 61%
The GGT Group Limited............................ United Kingdom DAS International Limited 100%
Tequila International Holdings Limited........... United Kingdom The GGT Group Limited 100%
Summertime Communications Limited................ United Kingdom The GGT Group Limited 100%
S-20
Percentage
of Voting
Jurisdiction Securities
of Owning Owned by
Company Incorporation Entity Registrant
------- ------------- ------ ----------
BDDP.GGT Limited................................. United Kingdom Summertime Communications Limited 100%
TBWA UK Group Holdings Limited................... United Kingdom BDDP.GGT Limited 100%
TISSA Ltd........................................ United Kingdom TBWA UK Group Holdings Limited 100%
TBWA GGT Simons Palmer Limited................... United Kingdom TBWA UK Group Holdings Limited 100%
Genesis Digital Creation Limited................. United Kingdom TBWA GGT Simons Palmer Limited 100%
Simons Palmer Clemmow Johnson (Holdings) Limited. United Kingdom TBWA GGT Simons Palmer Limited 100%
Catapult Studios Limited......................... United Kingdom Simons Palmer Clemmow Johnson (Holdings) Limited 100%
Parellel Productions Limited..................... United Kingdom Simons Palmer Clemmow Johnson (Holdings) Limited 100%
MicMacs Limited.................................. United Kingdom Simons Palmer Clemmow Johnson (Holdings) Limited 100%
Maher Bird Associates Limited.................... United Kingdom Simons Palmer Clemmow Johnson (Holdings) Limited 89%
B.D.H. Communications Group Limited.............. United Kingdom The GGT Group Limited 100%
BDH TBWA Limited................................. United Kingdom B.D.H. Communications Group Limited 100%
Compendium Specialist Communications
Services Limited ............................. United Kingdom B.D.H. Communications Group Limited 100%
Compendium Technology Limited.................... United Kingdom B.D.H. Communications Group Limited 100%
Iconactive Limited............................... United Kingdom B.D.H. Communications Group Limited 100%
Corporate Business Advisors Limited.............. United Kingdom The GGT Group Limited 100%
Mortimer Whittaker O'Sullivan Limited............ United Kingdom Corporate Business Advisors Limited 100%
Fallowbush Limited............................... United Kingdom The GGT Group Limited 100%
BDDP Holdings UK Limited......................... United Kingdom Fallowbush Limited 100%
GGT Advertising Limited.......................... United Kingdom The GGT Group Limited 100%
R. M. Communications Limited..................... United Kingdom GGT Advertising Limited 100%
GGT Direct Advertising Limited................... United Kingdom The GGT Group Limited 100%
Option One Group Limited......................... United Kingdom The GGT Group Limited 100%
Option One Limited............................... United Kingdom Option One Group Limited 100%
Tequila UK Limited............................... United Kingdom Option One Limited 81%
Prism International Limited...................... United Kingdom Option One Limited 100%
Tequila Payne Stracey Limited.................... United Kingdom Prism International Limited 100%
S-21
SCHEDULE II
-----------
EXISTING INDEBTEDNESS OF SUBSIDIARIES
-------------------------------------
(for purposes of Section 7(l))
Subsidiary Borrower Lender Grand Total
- ------------------- ------ -----------
Ketchum Directory Advertising AT&T Leasing 7,186
Copithorne and Bellows Bank of the West 22,117
Ketchum Communications AT&T Leasing 173,385
N/P Stock 244,958
Rapp Collins Marcoa Christian Hege 22,190
Fleishman Hillard Banc One 16,336
Banc One 15,727
Banc One 40,601
Banc One 41,142
Banc One 18,224
Banc One 82,783
Banc One 23,111
Banc One 101,699
Banc One 65,155
Banc One 112,496
Banc One 146,159
Ikon 7,348
Gavin Anderson Australia 248,650
Hong Kong 43,448
---------
Total Subsidiaries 1,432,715
=========
-22-
SCHEDULE III
------------
TYPES OF INDEBTEDNESS
---------------------
(for purposes of the definition of "Consolidated Indebtedness" in Section 8)
1. Indebtedness outstanding under the Amended and Restated Credit Agreement
dated as of May 10, 1996 amended and restated as of February 20, 1998
among the Borrowers and certain financial institutions.
2. Indebtedness evidenced by the Guarantor's 4-1/4% Convertible Subordinated
Debentures due 2007.
3. Indebtedness evidenced by the Guarantor's 2-1/4% Convertible Subordinated
Debentures due 2013.
4. Indebtedness having a maturity of one year or less incurred by the
Borrowers under committed or uncommitted lines of credit with one or more
commercial banks.
5. Indebtedness evidenced by BBDO Canada Inc.'s 111,000,000 Deutsche Mark
Floating Rate Bonds of 1995 due January 5, 2000.
6. Indebtedness evidenced by the Guarantor's French Franc 1,000,000,000 Notes
of 1998 due June 24, 2005.
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