Document:

ex10-3.htm

    

      Exhibit 10.3

      

      

      AMENDMENT
NO. 2

      

      TO

      

      THE
OPERATING AGREEMENT

      

      OF

      

      LAZARD
GROUP LLC

      

      This AMENDMENT NO. 2 (this “Amendment”) to the
Operating Agreement of Lazard Group LLC, a Delaware limited liability company,
dated as of May 10, 2005, as amended by Amendment No. 1 dated as of December 19,
2005 (such agreement, as so amended, the “Operating
Agreement”), is entered into as of May 7, 2008.

      

      WHEREAS, the Lazard Board (such term
and all other capitalized terms used but not defined herein shall have the
meanings ascribed thereto in the Operating Agreement), each Managing Member, the
Lazard Ltd Board and the Lazard Ltd Nominating Committee desire to amend the
Operating Agreement as set forth in this Amendment.

      

      NOW, THEREFORE, it is hereby agreed as
follows:

      

      1. AMENDMENTS.

      

      (a) Section 1.01 of the Operating
Agreement is hereby amended by (i) deleting the definition of “Lazard Ltd
Nominating Committee” and (ii) inserting the following in place
thereof:

      

      ““Lazard Ltd Nominating
Committee” means the Nominating and Governance Committee of the Lazard
Ltd Board.”

      

      (b) Section 3.02(d) of the Operating
Agreement is hereby amended by (i) deleting the last sentence in its entirety
and (ii) inserting the following in place thereof:

      

      “Notwithstanding
anything to the contrary set forth herein, notice of any meeting of the Lazard
Board to resolve or act upon anything relating to (1) the removal of, or any
request for the resignation or retirement of, the Chairman of the Board or the
Chief Executive Officer from such office or (2) any revocation, reduction or
limitation of the powers or authorities delegated or otherwise granted to the
Chairman of the Board or the Chief Executive Officer shall in each case be
deemed adequately delivered only if given to each of the Directors and, if such
person is not a Director, the Chairman of the Board or Chief Executive Officer,
as applicable, in each case in accordance with this Section 3.02(d) reasonably
in advance of such meeting (which shall, in any event, not require more than
five (5) days notice) (it being understood that, absent waiver by the Chief
Executive Officer in writing, the failure to provide adequate notice in
accordance with this sentence shall invalidate any action or resolution of the
Lazard Board to remove, or to request the resignation or retirement of, the
Chairman of the Board or the Chief Executive Officer from such office or to
revoke, reduce or limit the powers or authorities delegated or otherwise granted
to the Chairman of the Board or the Chief Executive Officer taken at such
meeting).”

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (c) Section 3.02(f) of the Operating
Agreement is hereby amended by (i) deleting the proviso and (ii) inserting the
following in place thereof:

      

      “provided, however, that,
notwithstanding anything herein to the contrary, any action or resolution of the
Lazard Board (i) to remove, or to request the resignation or retirement of, the
Chairman of the Board or the Chief Executive Officer from such office or (ii) to
revoke, reduce or limit the powers or authorities delegated or otherwise granted
to the Chairman of the Board or the Chief Executive Officer shall in each case
require (1) the approval of the Board of Directors of Lazard Ltd (the “Lazard Ltd Board”) in
accordance with Article 24 of the Lazard Ltd Bye-Laws and (2) after the approval
set forth in clause (1) of this proviso has been so obtained, the affirmative
vote of a majority of the Directors then in office, to be an act of the Lazard
Board.”

      

      2. BINDING
EFFECT.  This Amendment shall be binding upon, and shall inure
to the benefit of, all parties to the Operating Agreement and their respective
successors and assigns.

      

      3. EXECUTION IN
COUNTERPARTS. This Amendment may be executed in counterparts,
each of which shall be deemed an original, but all of which shall constitute one
and the same instrument.

      

      4. INVALIDITY OF
PROVISIONS.  If any provision of this Amendment is declared or
found to be illegal, unenforceable or void, in whole or in part, then the
parties shall be relieved of all obligations arising under such provision, but
only to extent that it is illegal, unenforceable or void, it being the intent
and agreement of the parties that this Amendment shall be deemed amended by
modifying such provision to the extent necessary to make it legal and
enforceable while preserving its intent or, if that is not possible, by
substituting therefor another provision that is legal and enforceable and
achieves the same objectives, and the validity or enforceability of any other
provision hereof shall not be affected thereby.

      

      5. AGREEMENT IN EFFECT;
EFFECTIVENESS. Except as hereby amended, the Operating Agreement shall
remain in full force and effect.  This Amendment shall be effective as
of the date first written above.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      6. GOVERNING LAW. This
Amendment shall be governed by, and interpreted in accordance with, the laws of
the State of Delaware, all rights and remedies being governed by such laws
without regard to principles of conflicts of laws.

      

      IN WITNESS WHEREOF, the undersigned,
acting pursuant to the power of attorney provided for by Section 10.10 of the
Operating Agreement and the resolutions of (i) the Lazard Board adopted on
February 26, 2008, (ii) each Managing Member adopted on May 5, 2008, (iii) the
Lazard Ltd Nominating Committee adopted on February 26, 2008 and (iv) the Lazard
Ltd Board adopted on February 26, 2008, has duly executed this Amendment on
behalf of all Members as of the date first written above.

       

      
        	 
      	
                by

              	 
      
	 
      	 
      	
                 /s/
      Scott D. Hoffman

              
	 
      	 
      	
                Name:
      Scott D. Hoffman

              
	 
      	 
      	
                Title:
      General Counselex10-1.htm

     

    Exhibit
10.1

    
    

     

    
      	
              CSX
      2008–2010 Long Term Incentive Plan

               

               

              Effective Date and
      Term

              

              The
      CSX 2008–2010 Long Term Incentive Plan (the “2008–2010 LTIP” or the
      “Plan”), effective May 6, 2008 (the “Effective Date”), is the vehicle
      pursuant to which CSX Corporation (“CSX”) awards Performance Grants, as
      described in Section 8 of the CSX Omnibus Incentive Plan. The 2008–2010
      LTIP Cycle (the “2008–2010 Cycle” or “Cycle”) commences on the Effective
      Date and ends December 31, 2010.

              

              Purpose and
      Objective

              

              The
      purpose of the 2008–2010 LTIP is to reward eligible employees for their
      contribution to the attainment of a lower Operating Ratio which is
      intended to result in CSX share price appreciation. Performance Grants are
      issued based on an employee’s job position, accountability, and the
      potential to impact CSX’s financial results.

              

              The
      Plan seeks to motivate and reward employees through the issuance of
      Performance Grants by which payouts (sometimes referred to as the
      “Performance Awards”) are made based on CSX’s 2010 Operating Ratio
      (“Operating Ratio”).   Performance Awards will be in the
      form of CSX common stock.

              

              Eligibility and
      Participation

              

              Active
      employees of CSX or a participating affiliate (the Company or
      collectively, the “Companies”) in salary Band 06 and above as of the
      Effective Date shall participate in the 2008–2010 LTIP (“Participants”)
      and shall receive Performance Grants in accordance with the dollar value
      schedule approved by the Compensation Committee of CSX’s Board of
      Directors (the “Compensation Committee”). The CSX Compensation and
      Benefits Department calculates the Performance Grants granted to each
      salary band level (“Bands”). The Performance Grant schedule will be
      maintained in the office of the Plan Administrator.

              

              Employees
      hired or promoted into Band 06 and above after the Effective Date and
      before the end of the 2008–2010 Cycle will receive a pro rata allocation
      of Performance Grants based on their participation (and status as full
      time or part-time).  Participants who are moved to a higher or
      lower Band during the Cycle will receive a pro rata reallocation of
      Performance Grants pertaining to each applicable Band based upon the
      number of months of participation in each Band relative to the number of
      months in the Cycle.  The same pro rata method will be used for
      employees who transfer between union and non-union employment. For
      purposes of the pro rata calculation, participation begins on the first
      day of the month following the date the Participant was hired, promoted,
      demoted, or transferred.  Notwithstanding the preceding
      sentence, any Participant who is hired at or promoted to a salary level
      making such Participant a “covered employee” under Internal Revenue Code
      Section 162(m) must have had a period of service of at least 3 months to
      qualify for a Performance Grant at that level. In such cases, the pro rata
      calculation shall be made as of the date of hire or
promotion.

              

              Plan
      Design

              

              General

              

                            
      Under the 2008–2010 LTIP, the Compensation Committee approves the value of
      incentive compensation granted to each Band.  The number of
      Performance Grants

               

               

               

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
    

     

    
      	
              
                               
      granted to each Band is calculated by the Compensation and Benefits
      Department using the New York Stock Exchange closing price of CSX stock on
      May 6, 2008.

                 

              

              
                Operating
      Ratio

                

                Operating
      Ratio is the single performance measure.  CSX Executive Team
      (“E-Team’) Participants, however, are subject, as discussed further below,
      to certain additional measures which may result in the reduction of
      Performance Awards despite achievement of a preestablished Operating Ratio
      goal.  Operating Ratio is defined as consolidated CSX
      Corporation operating expenses divided by operating revenue. Operating
      Ratio is calculated excluding nonrecurring items disclosed in the
      financial statements.  Using this measure to determine payout
      levels reinforces the correlation between an improving Operating Ratio and
      an increasing stock price.  Efforts to improve the Operating
      Ratio aligns CSX’s business objectives in a way that allows individuals to
      equate personal actions to desired performance outcomes.  Each
      Plan Participant should be motivated to grow revenue, reduce expense,
      improve service, increase productivity, improve safety, and increase asset
      utilization and rationalization.

                

                As
      the price of oil has a significant impact on the Operating Ratio but not
      necessarily Operating Income because of CSX’s ability to pass a portion of
      the cost of oil on to customers, the Operating Ratio targets vary based on
      the average cost of oil per barrel outside the “collar” for
      2010.  The chart in Exhibit A reflects the Operating Ratio
      targets and related Performance Awards at various WTI/Barrel prices of oil
      and provides a payout example.

                 

                Performance
      Awards

                

                As
      shown in the Performance Measure Table in Exhibit A, Performance Awards
      are paid out as a percentage of a Participant’s Performance Grant units
      based upon the applicable CSX 2010 Operating Ratio discussed
      above.  All Performance Awards will be paid in CSX
      stock.

                

                Terms
      of Performance Award

                

                Performance
      Awards will be paid only to Participants who are actively employed by the
      Companies on the date of payout for the 2008–2010 LTIP. Except as provided
      below, all other Participants whose employment terminates prior to the
      payout date shall forfeit any and all Performance Grants and thus receive
      no Performance Award. All Performance Awards will be payable no later than
      the March 15 following the end of the Cycle.

                

                A
      Participant whose employment terminates due to death, disability, or
      retirement, shall be eligible to receive a pro rata Award under the LTIP
      if the Participant would have received a Performance Award had there been
      no death, disability, or retirement. Retirement shall mean (i) the
      attainment of age 55 and 10 years of Company service, or (ii) the
      attainment of age 65. Disability shall mean long-term disability as
      defined in the CSX Corporation Salary Continuance and Long-Term Disability
      Plan.  In the case of death, such Performance Awards shall be
      made to the Participant’s estate, or as otherwise directed by
      law.   If a Participant is due to receive a pro rata
      Performance Award under this paragraph but prior to payment engages in any
      prohibited conduct involving moral turpitude discussed further below, or
      violates the conditions stated in (i) through (v) of the Claw Back
      Provision contained herein, all Performance Grants shall be
      forfeited.

                 

                Participants
      whose hours are reduced so that they are no longer full time active
      employees during the 2008–2010 Cycle, as a result of a phased retirement
      or similar

                 

                 

                2

              

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
    

     

    
      	
              program
      at the request of or with the consent of CSX, shall be entitled to a pro
      rata Performance Award to the date of such change and a pro rata reduced
      Performance Award for the remaining portion of such 2008–2010 Cycle they
      work based on their reduced hours.

               

              A
      Participant who commits an act involving
      moral turpitude that adversely affects the reputation or business
      of the Companies shall forfeit any Performance Grant.  Examples of
      acts of moral turpitude include dishonesty or fraud involving the
      Companies, their employees, vendors or customers and violations of CSX’s
      Code of Ethics.

               

              Taxation
      of Performance Awards

               

              Performance
      Awards will be paid in shares of CSX common stock.  The value
      received by the Participant is taxable income, so CSX is required to
      withhold income taxes at the prescribed rates for both supplemental income
      and employment taxes at the time the Performance Awards are paid. 
      Thus, CSX will withhold the minimum number of shares (in whole shares)
      equal in value to such required amount.  No additional voluntary
      withholding amount is permitted.  The following is an example of the
      withholding calculation:

               

              Example:

               

              ●       
      Assume the Performance Award earned is 300 shares.

              ●       
      Assume the stock price at payout is $60.00.

              ●  
           Assume the aggregate income tax
      withholding rate and payroll tax is
32%.

            

    

    
      	 	Gross Performance
      Award	
              300
      shares

            	
              $18,000 

            	 
	 	Stock
      Withholding	
              96
      shares

            	
              $5,760

            	 
	 	Net Performance
      Award	
              204
      shares

            	
               $12,240

            	 

    

    
      	
              Participants
      in the CSX Executive Deferred Compensation Plan may defer receipt of
      Performance Awards.

               

              No
      Performance Award is considered earned under the Plan until the
      Compensation Committee approves the payout.

               

              Plan
      Administration

               

              The
      Senior Vice President - Human Resources and Labor Relations of CSX shall
      be the Plan Administrator and shall interpret and construe the provisions
      of the Plan subject to the terms of the CSX Omnibus Incentive Plan and the
      Compensation Committee’s authority and responsibility under the CSX
      Omnibus Incentive Plan and Internal Revenue Code Section
      162(m).

               

              Plan
      Amendments and Termination

               

              
                Consistent
      with Internal Revenue Code Section 162(m), the Compensation
      Committee reserves the right to terminate, adjust, amend, or suspend the
      Plan at any time and at its sole discretion.

                 

                 

                3

              

            

    

     

    
    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
    

     

    
      
        
          	
                  Claw Back
      Provision

                  

                  The
      Claw Back Provision discussed herein applies only to Participants in Band
      10 and above (including retirees from Band 10 and above).

                  

                  If
      such Participant receives a Performance Award, the following terms and
      conditions shall apply for the subsequent two-year period from the payout
      (whether or not such Participant continues to be employed by the
      Company).

                  

                  Such
      Participants, shall

                

        

        
          	 
      	
                  (i)

                	
                  not,
      without written Company consent, work for a Class I railroad in a capacity
      similar to the function performed over the 5 years prior to termination;
      or for a customer or supplier for whom the Participant has had direct work
      responsibility in the prior 12 months in a capacity similar to the
      functions performed over the 5 years prior to
      termination;

                	 
	 
      	
                  (ii)

                	
                  not,
      without written Company consent, solicit employees to work for a
      competitor in a capacity similar to such solicited employee’s
      capacity;

                	 
	 
      	
                  (iii)

                	
                  not,
      without written Company consent, solicit the Companies’ customers on
      behalf of a competitor;

                	 
	 
      	
                  (iv)

                	
                  not,
      without written Company consent, act in a manner adversarial or in any way
      contrary to the best interests of the Company; (for example, testifying as
      an expert witness or becoming associated with a union or law firm that
      takes positions adverse to the Companies);

                	 
	 
      	
                  (v)

                	
                  provide
      the Company with information or documentation showing compliance with
      conditions (i), (ii), (iii), and (iv) stated above, if requested by the
      Plan Administrator.

                	 

        

        
          	
                  If
      a Participant breaches any of the conditions set forth above in this Claw
      Back Provision, the Participant shall repay to the Company an amount equal
      to value of the Performance Award.  The value of the Performance
      Award is measured by the amount reported on Form W-2 for tax
      purposes.  Any amount due hereunder shall be paid by the
      Participant within thirty (30) days of notice by the Company to the
      Participant that the Participant has breached a condition stated
      above.

                  

                  In
      the event of Company accounting irregularities discovered within 2 years
      after receipt of Performance Awards, which requires the Company to
      materially restate its financial statements, the Participant shall repay
      all amounts in excess of the proper Award as determined under the restated
      financial statements.

                  

                  By
      accepting a Performance Award, the Participant authorizes the Company to
      withhold, to the extent permitted by law, the amount it may otherwise owe
      to the Participant in any other capacity whatsoever. In cases where all or
      part of the Performance Award is deferred under the CSX Executive Deferred
      Compensation Plan, breach of these conditions shall result in an immediate
      forfeiture of the portion deferred—including any earnings thereon from the
      date of deferral.

                  

                  The
      Claw Back provision shall not survive any change in control event as
      defined in the CSX Omnibus Incentive Plan ocurring during the
      Cycle.

                  

                  Consideration for
      Noncompete Agreement

                  

                  In
      consideration for eligibility under this 2008–2010 LTIP, Employees in Band
      10 and above,  must enter into a noncompete agreement, if not
      already in effect, as prescribed and agreed to by
      CSX.  Eligibility in the 2008–2010 LTIP for Employees in Band 10
      and above is conditioned upon the existence of such noncompete
      agreement.

                   

                   

                   

                  4

                

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        
          	
                  Miscellaneous

                   

                  The
      adoption of the 2008–2010 LTIP does not imply any commitment to continue
      the Plan or any other long term incentive compensation plan for any
      succeeding year or period. Neither the Plan, nor any Performance Grant or
      Performance Award made under the Plan shall create any employment contract
      or relationship between the Companies and any Participant.

                   

                  E-Team
      Initiatives

                   

                  The
      Compensation Committee, in its sole discretion, may also reduce any payout
      otherwise earned by E-Team Participants by up to 30% based upon
      accomplishment of certain company initiatives set forth in Exhibit
      B.

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                  5

                

        

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
           

          
            
              	
                      
                        Exhibit
      A

                         

                         

                        Exhibit
      A contains specific quantitative or qualitative performance-related
      factors considered by the Compensation Committee of the Board of
      Directors, or other factors or criteria involving confidential trade
      secrets or confidential commercial or financial information, the
      disclosure of which would result in competitive harm for
      CSX.

                      

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                      6

                    

            

             

             

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

        

      

    

     

     

    
       

      
        
          	
                  
                    Exhibit
      B

                    

                    

                    Exhibit
      B contains specific quantitative or qualitative performance-related
      factors considered by the Compensation Committee of the Board of
      Directors, or other factors or criteria involving confidential trade
      secrets or confidential commercial or financial information, the
      disclosure of which would result in competitive harm for CSX.

                    

                  

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                  7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]