Document:

Tax Receivable Agreement

 EXHIBIT 10.3 
  
 TAX RECEIVABLE AGREEMENT 
  
 This TAX RECEIVABLE AGREEMENT (this “Agreement”), dated as of May 10, 2005, by and among Ltd Sub A and Ltd Sub B, (each as defined
herein) both wholly owned indirect subsidiaries of Lazard Ltd, a Bermuda company (“Lazard”) and LFCM Holdings LLC, a Delaware limited liability company (“LFCM”). 
  
 WHEREAS, on December 16, 2004, Lazard, Lazard LLC, a Delaware limited
liability company taxable as a partnership for U.S. Federal income tax purposes that will be renamed “Lazard Group LLC” (“Lazard Group”) and LAZ-MD Holdings LLC, a Delaware limited liability company
(“LAZ-MD”), entered into that certain Class B-1 and Class C Members Transaction Agreement relating to Lazard Group (the “Buyout Agreement”); and 
  
 WHEREAS, pursuant to the Buyout Agreement, certain interests of historic partners of Lazard Group (the “Historic
Partners”) shall be redeemed for cash (the “Redemption”); and 
  
 WHEREAS, pursuant to the Buyout Agreement, Lazard Group and the Historic Partners have agreed to treat a portion of the consideration paid to the Historic Partners in the Redemption as received in a sale or exchange
pursuant to Section 707(a)(2)(B) of the Internal Revenue Code of 1986, as amended (the “Code”) and the remainder of such consideration as received by the Historic Partners as a distribution; and 
  
 WHEREAS, in connection with transactions contemplated by the Buyout
Agreement, certain members of Lazard Group (each, an “Exchangeable Holder”) will be issued a class of exchangeable membership interests in LAZ-MD, which exchangeable interests are effectively exchangeable on a one-for-one basis for shares
of Lazard (an “Exchange”); and 
  
 WHEREAS the Exchanges
are expected to be effected via an Exchangeable Holder’s transfer of Lazard Group interests directly to Ltd Sub A and Ltd Sub B (each, an “Ltd Exchanging Subsidiary”) in transactions that are intended to result in an Exchangeable
Holder’s recognition of gain or loss for U.S. Federal income tax purposes (each, a “Taxable Exchange”), as described herein; and 
  
 WHEREAS, Lazard Group shall have in effect an election under Section 754 of the Code for the Taxable Year (as defined herein) in which the Redemption
occurs, which election will result in an adjustment to the Ltd Exchanging Subsidiaries’ share of the tax basis of the assets owned by Lazard Group as of the Redemption Date (such assets and any asset whose tax basis is determined, in whole or
in part, by reference to the adjusted basis of any such asset, the “Original Assets”) by reason of the Redemption; and 
  
 WHEREAS, Lazard Group intends to have in effect an election under Section 754 of the Code for each Taxable Year in which any Taxable Exchange occurs,
which election will result in an adjustment to the Ltd Exchanging Subsidiaries’ share of the tax basis of the assets owned by Lazard Group as of the date of any such Taxable Exchange; and 
  

 WHEREAS, Lazard, through the Ltd Exchanging Subsidiaries, will own, immediately following the Redemption,
a controlling interest in Lazard Group and a portion of the common membership interests in Lazard Group; and 
  
 WHEREAS, the income, gain, loss, expense and other Tax items of Lazard Group and the Relevant Lazard Ltd Taxpayers (as defined herein) may be affected by
the Basis Adjustment (as defined herein) and the Imputed Interest (as defined herein); and 
  
 WHEREAS, the parties to this Agreement desire to make certain arrangements with respect to the effect of the Basis Adjustment and Imputed Interest on the actual liability for Covered Taxes of the Relevant Lazard Ltd
Taxpayers (as defined herein). 
  
 NOW, THEREFORE, in
consideration of the foregoing and the respective covenants and agreements set forth herein, and intending to be legally bound hereby, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 Definitions 
  
 Definitions. As used in this Agreement, the terms set forth in this Article I shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined). 
  
 “Advisory Firm” means an accounting or law firm that is nationally recognized as being expert in Covered Tax matters, as determined by the Audit Committee. The Audit Committee shall select the Advisory Firm. 
  
 “Advisory Firm Letter” shall mean a letter from the Advisory
Firm stating that the relevant schedule, notice or other information to be provided by the Ltd Exchanging Subsidiaries to LFCM and all supporting schedules and work papers were prepared in a manner consistent with the terms of this Agreement and, to
the extent not expressly provided in this Agreement, on a reasonable basis in light of the facts and law in existence on the date such schedule, notice or other information is delivered to LFCM. 
  
 “Agreed Rate” means LIBOR plus 200 basis points. 

 
 “Agreement” is defined in the preamble. 
  
 “Amended Tax Benefit Schedule” is defined in Section 2.05(b)
of this Agreement. 
  
 “Applicable Treasury Rate”
means a rate equal to the yield to maturity as of the date an Early Termination Notice is delivered (the “delivery date”) of U.S. Treasury securities with a constant maturity (the “Applicable Maturity”) (as compiled and
published in the most recent Federal Reserve Statistical Release H 15 (519)) equal to (a) if the delivery date is on or after the third anniversary of the Redemption Date but prior to the fifth anniversary of the Redemption Date, 10 years after the
delivery date, (b) if the delivery date is on or after the fifth anniversary of 

  

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the Redemption Date but prior to the fifteenth anniversary of the Redemption Date, the number of years from the delivery date through the fifteenth
anniversary of the Redemption Date, or (c) if the delivery date is on or after the fifteenth anniversary of the Redemption Date, two years after the delivery date. If there are no U.S. Treasury securities with a constant maturity equal to the
Applicable Maturity, the yield to maturity shall be interpolated from the U.S. Treasury securities with constant maturities that are most nearly longer than and shorter than the Applicable Maturity. 
  
 “Audit Committee” means the audit committee of the board of
directors of Lazard. 
  
 “Basis Adjustment” means
the increase or decrease to the tax basis of, or any Relevant Lazard Ltd Taxpayer’s share of the tax basis of, Lazard Group’s assets (i) under Sections 734(b), 743(b) and 754 of the Code and the comparable sections of U.S. state and local
income and franchise Tax law as a result of the Redemption, (ii) under Section 743(b) and 754 of the Code and the comparable sections of U.S. state and local income and franchise Tax law as a result of any Taxable Exchange and (iii) under Sections
743(b) and 754 as a result of any payments under this Agreement. For the avoidance of doubt, payments under this Agreement shall not be treated as resulting in a Basis Adjustment to the extent such payments relate to the Redemption or are treated as
Imputed Interest. 
  
 “Business Day” means any
calendar day that is not a Saturday, Sunday or other calendar day on which banks are required or authorized to be closed in the City of New York. 
  
 “Buyout Agreement” is defined in the recitals. 
  

“Change of Control Event” means the occurrence of any of the following events: 
  
 (i) the consummation, through one or more related
transactions, of (A) a merger, amalgamation, consolidation, statutory share exchange or similar form of corporate transaction involving Lazard or Lazard Group (a “Reorganization”) or (B) the sale or other disposition of all or
substantially all the assets of Lazard or Lazard Group to an entity that is not a controlled subsidiary of Lazard (a “Sale”) if such Reorganization or Sale requires the approval of Lazard’s stockholders under the law of Bermuda
(whether such approval is required for such Reorganization or Sale or for the issuance of securities of Lazard in such Reorganization or Sale or the rules and regulations of the principal trading exchange for Lazard’s Class A common shares),
unless, immediately following such Reorganization or Sale, (1) all or substantially all the individuals and entities who were the “beneficial owners” (as such term is defined in Rule 13d-3 under the Exchange Act (or a successor rule
thereto)) of the shares of Lazard, or such other securities of Lazard into which such shares shall be changed by reason of a Reorganization (the “Shares”) or other securities eligible to vote for the election of the Board (together,
“Lazard Voting Securities”) outstanding immediately prior to the consummation of such Reorganization or Sale beneficially own, directly or indirectly, more than 50% of the combined voting power of the then outstanding voting
securities of the corporation resulting from such Reorganization or Sale (including, 

  

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without limitation, a corporation that as a result of such transaction owns Lazard or all or substantially all Lazard’s assets either directly or
through one or more subsidiaries) (the “Continuing Corporation”) in substantially the same proportions as their ownership, immediately prior to the consummation of such Reorganization or Sale, of the outstanding Lazard Voting
Securities (excluding any outstanding voting securities of the Continuing Corporation that such beneficial owners hold immediately following the consummation of the Reorganization or Sale as a result of their ownership prior to such consummation of
voting securities of any company or other entity involved in or forming part of such Reorganization or Sale other than Lazard); 
  
 (ii) the stockholders of Lazard approve a plan of complete liquidation or dissolution of Lazard; or 
  
 (iii) any “person” (as such term is used in
Section 13(d) of the Exchange Act), corporation or other entity or “group” (as used in Section 14(d)(2) of the Exchange Act) (other than (A) Lazard, (B) any trustee or other fiduciary holding securities under an employee benefit plan of
Lazard or an affiliate of Lazard, (C) a person controlled by all or substantially all of the then-current managing directors of Lazard (provided no individual person controls more than 5% of any such person) or (D) any company owned, directly or
indirectly, by the stockholders of Lazard in substantially the same proportions as their ownership of the voting power of the Lazard Voting Securities) becomes the beneficial owner, directly or indirectly, of securities of Lazard representing 20% or
more of the combined voting power of the Lazard Voting Securities; provided, however, that for purposes of this subparagraph (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Lazard or an
affiliate of Lazard shall not constitute a Change of Control Event. 
  
 “Change of Control Termination Payment” is defined in Section 4.03(c) of this Agreement. 
  
 “Change Notice” is defined in Section 3.03 of this Agreement. 
  
 “Code” is defined in the recitals. 
  
 “Covered Taxable Year” means any Taxable Year of the Relevant Lazard Ltd Taxpayers ending after the
Redemption Date and on or before the end of the Taxable Year including the date which is the twentieth-fourth (24th) anniversary of the Redemption Date. 
  
 “Covered Taxes” means U.S. Federal Income Taxes and U.S. state and local income and franchise Taxes. 
  
 “Determination” shall have the meaning ascribed to such term
in Section 1313(a) of the Code or similar provision of state or local income or franchise Tax law, as applicable. 
  
 “Early Termination Notice” is defined in Section 4.02 of this Agreement. 
  

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 “Early Termination Payment” is defined in Section 4.03(b) of this Agreement. 

 
 “Early Termination Rate” means the Applicable Treasury
Rate plus 300 basis points. 
  
 “Escrow Agent” is
defined in Section 3.01(a) of the Agreement. 
  
 “Escrow
Agreement” is defined in Section 3.01 of the Agreement. 
  
 “Exchange” is defined in the recitals. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute thereto. 
  
 “Exchange Assets” means the assets owned by Lazard Group as of an applicable Exchange Date (and any asset whose tax basis is determined,
in whole or in part, by reference to the adjusted basis of any such asset). 
  
 “Exchange Basis Schedule” is defined in Section 2.04(a) of this Agreement. 
  
 “Exchange Date” means the date on which a Taxable Exchange is effected. 
  
 “Exchangeable Holder” is defined in the recitals. 
  
 “Federal Income Tax” means any tax imposed under Subtitle A
of the Code or any other provision of U.S. Federal income tax law (including, without limitation, the taxes imposed by Sections 11, 55, 59A, 881, 882, 884 and 1201(a) of the Code), and any interest, additions to tax or penalties applicable or
related to such tax. 
  
 “Governmental Entity”
means any federal, state, local, provincial or foreign government or any court of competent jurisdiction, administrative agency or commission or other governmental authority or instrumentality, whether domestic or foreign. 
  
 “Hypothetical Tax Basis” means, with respect to any asset at
any time, the tax basis that such asset would have at such time if no Basis Adjustment had been made as a result of the Redemption or an applicable Taxable Exchange, as the case may be. 
  
 “Hypothetical Tax Liability” means, with respect to any Covered Taxable Year, the liability for Covered
Taxes of the Relevant Lazard Ltd Taxpayers using the same methods, elections, conventions and similar practices used on the actual Tax Returns of such Relevant Lazard Ltd Taxpayers, but using the Hypothetical Tax Basis instead of the actual tax
basis of each relevant asset and excluding any deduction attributable to the Imputed Interest. 
  
 “Imputed Interest” shall mean any interest imputed under Section 1272, 1274 or 483 or other provision of the Code (or any successor U.S. Federal income tax statute) and the similar section of the
applicable U.S. state or local income or franchise Tax law with respect to the Ltd Exchanging Subsidiaries’ payment obligations under this Agreement. 
  

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 “IPO Proceeds” means the aggregate proceeds from the sale of Lazard shares in an initial
public offering, net of underwriters’ discounts and commissions and directly allocated expenses. 
  
 “IRS” means the U.S. Internal Revenue Service. 
  

“LAZ-MD” is defined in the recitals. 
  
 “Lazard” is defined in the preamble. 
  
 “LFCM” is defined in the preamble. 
  
 “LFCM Operating Agreement” means the Operating Agreement of LFCM dated as of May 10, 2005. 
  
 “Ltd Exchanging Subsidiary” is defined in the recitals.

  
 “Ltd Exchanging Subsidiary Payment” is
defined in Section 5.01 of this Agreement. 
  
 “Ltd Sub
A” and “Ltd Sub B” are defined in Schedule A to this Agreement. 
  
 “LIBOR” means, for each month (or portion thereof) during any period, an interest rate per annum equal to the rate per annum reported, on the date two days prior to the first day of such month, on the
Telerate Page 3750 (or if such screen shall cease to be publicly available, as reported on Reuters Screen page “LIBO” or by any other publicly available source of such market rate) for London interbank offered rates for U.S. dollar
deposits for such month (or portion thereof). 
  
 “Person” means and includes any individual, firm, corporation, partnership (including, without limitation, any limited, general or limited liability partnership), company, limited liability company, trust, joint venture,
association, joint stock company, unincorporated organization or similar entity or Governmental Entity. 
  
 “Potential Reduction” is defined in Section 3.03(a) of this Agreement. 
  
 “Proceeding” is defined in Section 7.08 of this Agreement. 
  
 “Realized Tax Benefit” means, for a Covered Taxable Year,
the excess, if any, of the Hypothetical Tax Liability over the actual liability for Covered Taxes of the Relevant Lazard Ltd Taxpayers for such Covered Taxable Year, less the fees, charges and expenses of the Advisory Firm and the expert described
in Section 7.09 related to this Agreement paid by the Relevant Lazard Ltd Taxpayers in the relevant Covered Taxable Year. For the avoidance of doubt, the “Realized Tax Benefit” shall take into account the difference, if any, in the ability
of Ltd Sub B to use foreign tax credits to offset its U.S. Federal income tax liability in calculating its Hypothetical Tax Liability and its actual liability for Covered Taxes in the Covered Taxable Year. If all or a portion of the actual tax
liability for Covered Taxes for the Covered Taxable Year arises as a result of an audit by a Taxing Authority of any Covered Taxable Year, such liability shall 

  

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not be included in determining the Realized Tax Benefit or the Realized Tax Detriment unless and until there has been a Determination. 
  
 “Realized Tax Detriment” means, for a Covered Taxable Year,
the excess, if any, of the actual liability for Covered Taxes of the Relevant Lazard Ltd Taxpayers over the Hypothetical Tax Liability for such Covered Taxable Year, plus the fees, charges and expenses of the Advisory Firm and the expert described
in Section 7.09 related to this Agreement paid by the Relevant Lazard Ltd Taxpayers in the relevant Covered Taxable Year. For the avoidance of doubt, the “Realized Tax Detriment” shall take into account the difference, if any, in the
ability of Ltd Sub B to use foreign tax credits to offset its U.S. Federal income tax liability in calculating its Hypothetical Tax Liability and its actual liability for Covered Taxes in the Covered Taxable Year. If all or a portion of the actual
tax liability for Covered Taxes for the Covered Taxable Year arises as a result of an audit by a Taxing Authority of any Covered Taxable Year, such liability shall not be included in determining the Realized Tax Benefit or Realized Tax Detriment
unless and until there has been a Determination. 
  
 “Reconciliation Procedures” shall mean those procedures set forth in Section 7.09 of this Agreement. 
  
 “Redemption” is defined in the recitals. 
  
 “Redemption Basis Schedule” is defined in Section 2.02 of this Agreement. 
  
 “Redemption Date” means the date on which the Redemption is effected. 
  
 “Relevant Lazard Ltd Taxpayer” means (i) Ltd Sub A (or its
successors and assigns) or (ii) Ltd Sub B (or its successors and assigns) and (iii) any consolidated, combined or unitary group containing either Ltd Sub A or Ltd Sub B, as the case may be, or any of their respective successors and/or assigns.

  
 “Scheduled Termination Date” shall mean the
date on which this Agreement would terminate in the absence of an Early Termination Notice. 
  
 “Senior Obligations” is defined in Section 5.01 of this Agreement. 
  
 “Subsidiary” means any entity in which Lazard, directly or indirectly, possesses fifty percent (50%) or more of the total combined voting
power of all classes of its stock, other than Lazard Group, Lazard Group Finance, LLC and their respective subsidiaries. 
  
 “Tax Benefit Payment” is defined in Section 3.01(b) of this Agreement. 
  
 “Tax Benefit Schedule” is defined in Section 2.05(a) of this Agreement. 
  
 “Taxable Exchange” is defined in the recitals. 

 
 “Taxable Year” means a taxable year as defined in Section
441(b) of the Code or comparable section of U.S. state or local income or franchise Tax law, as applicable, (and, therefore, 

  

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for the avoidance of doubt, may include a period of less than 12 months for which a Tax Return is made). 
  
 “Taxes” means (i) all forms of taxation or duties imposed,
or required to be collected or withheld, including, without limitation, charges, together with any related interest, penalties or other additional amounts, (ii) liability for the payment of any amount of the type described in the preceding clause
(i) as a result of being a member of an affiliated, consolidated, combined or unitary group, and (iii) liability for the payment of any amounts as a result of being party to any tax sharing agreement (other than this Agreement) or as a result of any
express or implied obligation to indemnify any other person with respect to the payment of any amount described in the immediately preceding clauses (i) or (ii) (other than an obligation to indemnify under this Agreement). 
  
 “Tax Return” means any return, filing, report,
questionnaire, information statement or other document required to be filed, including amended returns that may be filed, for any taxable period with any Taxing Authority (whether or not a payment is required to be made with respect to such filing).

  
 “Taxing Authority” means the IRS and any
other state, local, foreign or other Governmental Entity responsible for the administration of Taxes. 
  
 “Treasury Regulations” means the final, temporary and proposed regulations under the Code promulgated from time to time (including
corresponding provisions of succeeding provisions) as in effect for the relevant taxable period. 
  
 “Valuation Assumptions” shall mean, as of any Valuation Date, the assumptions described in Schedule B to this Agreement. 
  
 “Valuation Date” means the date of an Early Termination
Notice for purposes of determining an Early Termination Payment or Change of Control Termination Payment. 
  
 ARTICLE II 
  
 Determination of Realized Tax Benefit or Realized Tax Detriment 
  
 SECTION 2.01. Redemption Date Basis Adjustment. Pursuant to the Buyout Agreement, Lazard Group and the Historic Partners have agreed to treat the consideration paid to the Historic Partners in the Redemption
(i) as a sale or exchange pursuant to Section 707(a)(2)(B) of the Code (the “Sale”) to the extent such consideration originates from IPO Proceeds and (ii) as a distribution pursuant to Section 736(b)(1) and Section 731(b) of the
Code (the “Distribution”) to the extent the total Redemption consideration exceeds the IPO Proceeds. The Ltd Exchanging Subsidiaries and LFCM hereby agree that (i) the Historic Partners of Lazard Group redeemed for cash in the
Redemption shall recognize gain on the Redemption Date under Sections 741 and 731 of the Code, (ii) each Ltd Exchanging Subsidiary’s share of the basis in the Original Assets shall be increased by the excess of the Sale proceeds over the Ltd
Exchanging Subsidiary’s proportionate share of the basis of the Original Assets on the Redemption Date and (iii) the basis in the Original Assets shall be increased by the amount of gain recognized by the 

  

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Historic Partners of Lazard Group with respect to the Distribution. The Ltd Exchanging Subsidiaries and LFCM shall treat such gain and Basis Adjustment as
occurring entirely on the Redemption Date unless there is a Determination to the contrary. For purposes of this Agreement, the Ltd Exchanging Subsidiaries and LFCM (i) shall not take into account the fair market value of the right to receive
payments under this Agreement in determining the amount of Sale proceeds or the amount of gain recognized by the Historic Partners on the Redemption Date and (ii) shall not treat any payments made under this Agreement with respect to the Redemption
as resulting in a Basis Adjustment. 
  
 SECTION 2.02. (a)
Redemption Basis Schedule. Within 120 calendar days after the Redemption Date, the Ltd Exchanging Subsidiaries shall deliver to LFCM a schedule (the “Redemption Basis Schedule”) approved by the Audit Committee that shows, in
reasonable detail, for purposes of Covered Taxes, (i) the actual tax basis as of the Redemption Date of the Original Assets, (ii) the Basis Adjustment with respect to the Original Assets as a result of the Sale and the Distribution and (iii) the
period or periods, if any, over which the Original Assets are amortizable or depreciable for purposes of Covered Taxes. At the time the Ltd Exchanging Subsidiaries deliver the Redemption Basis Schedule to LFCM, they shall (x) deliver to LFCM
schedules and work papers providing reasonable detail regarding the preparation of the Redemption Basis Schedule and an Advisory Firm Letter supporting such Redemption Basis Schedule and (y) allow LFCM reasonable access to the appropriate
representatives at Lazard and its Subsidiaries, Lazard Group and the Advisory Firm in connection with its review of such schedule. The Redemption Basis Schedule shall become final and binding on the parties unless LFCM, within 30 calendar days after
receiving such Redemption Basis Schedule, provides the Ltd Exchanging Subsidiaries with notice of a material objection to such Redemption Basis Schedule made in good faith. If the parties, negotiating in good faith, are unable to successfully
resolve the issues raised in such notice within 60 calendar days after such Redemption Basis Schedule was delivered to LFCM, the Ltd Exchanging Subsidiaries and LFCM shall employ the Reconciliation Procedures. 
  
 (b) Amended Redemption Basis Schedule. The Redemption
Basis Schedule may be amended from time to time by the Ltd Exchanging Subsidiaries with the consent of the Audit Committee (i) in connection with a Determination, (ii) to correct inaccuracies to the original Redemption Basis Schedule identified
after the Redemption Date as a result of the receipt of additional information relating to facts or circumstances on or prior to the Redemption Date or (iii) to comply with the expert’s determination under the Reconciliation Procedures. At the
time the Ltd Exchanging Subsidiaries deliver such amended Redemption Basis Schedule to LFCM they shall (x) deliver to LFCM schedules and work papers providing reasonable detail regarding the preparation of the amended Redemption Basis Schedule and
an Advisory Firm Letter supporting such amended Redemption Basis Schedule and (y) allow LFCM reasonable access to the appropriate representatives at Lazard and its Subsidiaries, Lazard Group and the Advisory Firm in connection with its review of
such schedule. The amended Redemption Basis Schedule shall become final and binding on the parties unless LFCM, within 30 calendar days after receiving such amended Redemption Basis Schedule, provides the Ltd Exchanging Subsidiaries with notice of a
material objection to such amended Redemption Basis Schedule made in good faith. If the parties, negotiating in good faith, are unable to successfully resolve the is- 

  

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sues raised in such notice within 60 calendar days after such amended Redemption Basis Schedule was delivered to LFCM, the Ltd Exchanging Subsidiaries and
LFCM shall employ the Reconciliation Procedures. 
  
 SECTION 2.03.
Basis Adjustment Attributable to a Taxable Exchange. Pursuant to a Taxable Exchange, (i) to the extent an Exchangeable Holder effecting a Taxable Exchange holds its Lazard Group interests through LAZ-MD, LAZ-MD will distribute to such
Exchangeable Holder all or a portion of LAZ-MD’s Lazard Group interests attributable to such Exchangeable Holder in redemption of all or a portion of the exchangeable interests of such Exchangeable Holder in LAZ-MD and (ii) the Exchangeable
Holder will transfer its interests in Lazard Group to the Ltd Exchanging Subsidiaries in exchange for shares of Lazard. The number of Lazard shares transferred by each Ltd Exchanging Subsidiary to an Exchangeable Holder pursuant to a Taxable
Exchange will be determined in proportion to each such subsidiary’s respective interests in Lazard Group on the applicable Exchange Date. The Ltd Exchanging Subsidiaries and LFCM hereby agree that an Exchangeable Holder effecting a Taxable
Exchange shall recognize gain, if any, for U.S. Federal income tax purposes on the Exchange Date under Section 741 of the Code in an amount equal to the excess of (i) the fair market value of the Lazard shares received in the Taxable Exchange over
(ii) the Exchangeable Holder’s basis in its Lazard Group interests transferred to the Ltd Exchanging Subsidiaries pursuant to the Taxable Exchange. For purposes of this Agreement, the Ltd Exchanging Subsidiaries and LFCM hereby agree that the
fair market value of the Lazard shares received in the Taxable Exchange shall mean the trading value of such shares at the close of business on the Exchange Date. The Ltd Exchanging Subsidiaries and LFCM further agree that, with respect to each
Taxable Exchange, each Ltd Exchanging Subsidiary’s share of the basis in the Exchange Assets shall be increased by the excess, if any, of (i) the fair market value of the Lazard shares transferred to the Exchangeable Holder pursuant to the
Taxable Exchange over (ii) the Ltd Exchanging Subsidiary’s proportionate share of the basis of the Exchange Assets immediately after the Taxable Exchange attributable to the Lazard Group interests exchanged. The Ltd Exchanging Subsidiaries and
the Exchangeable Holders, pursuant to the LFCM Operating Agreement, will treat such gain and Basis Adjustment as occurring entirely on the Exchange Date unless there is a Determination to the contrary. The Ltd Exchanging Subsidiaries and the
Exchangeable Holders, pursuant to the LFCM Operating Agreement, agree that, for U.S. Federal income tax purposes, this Agreement is treated as additional consideration paid to the Exchangeable Holders in the Exchange (and immediately assigned by the
Exchangeable Holders to LFCM). By assigning this Agreement to LFCM, the Exchangeable Holders relinquish all rights, title and interest under this Agreement. Notwithstanding any other provision of this Agreement, the Ltd Exchanging Subsidiaries and
LFCM (i) shall not take into account the fair market value of the right to receive payments under this Agreement in determining the Basis Adjustment resulting on any Exchange Date and (ii) shall not treat the payments of principal under this
Agreement related to any Taxable Exchange as resulting in a Basis Adjustment until such payments are made. 
  
 SECTION 2.04. (a) Exchange Basis Schedule. Within 120 calendar days after the end of a Covered Taxable Year in which any Taxable Exchange has been
effected, the Ltd Exchanging Subsidiaries shall deliver to LFCM a schedule (the “Exchange Basis Schedule”) approved by the Audit Committee that shows, in reasonable detail, for purposes of Covered Taxes, (i) the actual tax basis as
of the first applicable Exchange Date in such Covered Taxable Year of 

  

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the Exchange Assets, (ii) the Basis Adjustment with respect to the Exchange Assets as a result of the Taxable Exchanges effected in such Covered Taxable
Year, calculated in the aggregate, and (iii) the period or periods, if any, over which the Exchange Assets are amortizable or depreciable. At the time the Ltd Exchanging Subsidiaries deliver the Exchange Basis Schedule to LFCM, they shall (x)
deliver to LFCM schedules and work papers providing reasonable detail regarding the preparation of the Exchange Basis Schedule and an Advisory Firm Letter supporting such Exchange Basis Schedule and (y) allow LFCM reasonable access to the
appropriate representatives at Lazard and its Subsidiaries, Lazard Group and the Advisory Firm in connection with its review of such schedule. The Exchange Basis Schedule shall become final and binding on the parties unless LFCM, within 30 calendar
days after receiving such Exchange Basis Schedule, provides the Ltd Exchanging Subsidiaries with notice of a material objection to such Exchange Basis Schedule made in good faith. If the parties, negotiating in good faith, are unable to successfully
resolve the issues raised in such notice within 60 calendar days after such Exchange Basis Schedule was delivered to LFCM, the Ltd Exchanging Subsidiaries and LFCM shall employ the Reconciliation Procedures. 
  
 (b) Amended Exchange Basis Schedule. The Exchange
Basis Schedule may be amended from time to time by the Ltd Exchanging Subsidiaries with the consent of the Audit Committee (i) in connection with a Determination, (ii) to correct inaccuracies to the original Exchange Basis Schedule identified after
the date of the Taxable Exchange as a result of the receipt of additional information or (iii) to comply with the expert’s determination under the Reconciliation Procedures. At the time the Ltd Exchanging Subsidiaries deliver such amended
Exchange Basis Schedule to LFCM they shall (x) deliver to LFCM schedules and work papers providing reasonable detail regarding the preparation of the amended Exchange Basis Schedule and an Advisory Firm Letter supporting such amended Exchange Basis
Schedule and (y) allow LFCM reasonable access to the appropriate representatives at Lazard and its Subsidiaries, Lazard Group and the Advisory Firm in connection with its review of such schedule. The amended Exchange Basis Schedule shall become
final and binding on the parties unless LFCM, within 30 calendar days after receiving such amended Exchange Basis Schedule, provides the Ltd Exchanging Subsidiaries with notice of a material objection to such amended Exchange Basis Schedule made in
good faith. If the parties, negotiating in good faith, are unable to successfully resolve the issues raised in such notice within 60 calendar days after such amended Exchange Basis Schedule was delivered to LFCM, the Ltd Exchanging Subsidiaries and
LFCM shall employ the Reconciliation Procedures. 
  
 SECTION 2.05.
(a) Tax Benefit Schedule. Within 10 calendar days after filing the U.S. Federal Income Tax Return of the Relevant Lazard Ltd Taxpayers for the relevant Covered Taxable Year, each Ltd Exchanging Subsidiary shall provide to LFCM a schedule
approved by the Audit Committee showing, in reasonable detail, the calculation of each Relevant Lazard Ltd Taxpayer’s Realized Tax Benefit or Realized Tax Detriment for such Covered Taxable Year (the “Tax Benefit Schedule”). At
the time the Ltd Exchanging Subsidiaries deliver the Tax Benefit Schedules to LFCM they shall (i) deliver to LFCM schedules and work papers providing reasonable detail regarding the preparation of the Tax Benefit Schedules (including information
related to the amount of Ltd Sub A’s “effectively connected income” with respect to the applicable Covered Taxable Year as determined for U.S. Federal income tax purposes) and an Advisory 

  

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Firm Letter supporting such Tax Benefit Schedules and (ii) allow LFCM reasonable access to the appropriate representatives at Lazard and its Subsidiaries,
Lazard Group and the Advisory Firm in connection with its review of such schedules. The Tax Benefit Schedules shall become final and binding on the parties unless LFCM, within 30 calendar days after receiving such Tax Benefit Schedules, provides the
Ltd Exchanging Subsidiaries with notice of a material objection to such Tax Benefit Schedules made in good faith. If the parties, negotiating in good faith, are unable to successfully resolve the issues raised in such notice within 60 calendar days
after such Tax Benefit Schedules were delivered to LFCM, the Ltd Exchanging Subsidiaries and LFCM shall employ the Reconciliation Procedures. 
  
 (b) Amended Tax Benefit Schedule. A Tax Benefit Schedule for any Covered Taxable Year may be amended from time to time by the
applicable Ltd Exchanging Subsidiary with the consent of the Audit Committee (i) in connection with a Determination affecting such Tax Benefit Schedule, (ii) to correct inaccuracies in the original Tax Benefit Schedule identified as a result of the
receipt of additional factual information relating to a Covered Taxable Year after the date the Tax Benefit Schedule was provided to LFCM, (iii) to reflect a change in the Realized Tax Benefit or Realized Tax Detriment for such Covered Taxable Year
attributable to a carryback or carryforward of a loss or other tax item to such Covered Taxable Year, (iv) to reflect a change in the Realized Tax Benefit or Realized Tax Detriment for such Covered Taxable Year attributable to an amended tax return
filed for such Covered Taxable Year (provided, however, that such a change attributable to an audit of a Tax Return by an applicable Taxing Authority shall not be taken into account on an Amended Tax Benefit Schedule unless and until
there has been a Determination with respect to such change) or (v) to comply with the expert’s determination under the Reconciliation Procedures. At the time a Ltd Exchanging Subsidiary delivers such an amended Tax Benefit Schedule pursuant to
this Section 2.05(b) (an “Amended Tax Benefit Schedule”) to LFCM it shall (x) deliver to LFCM schedules and work papers providing reasonable detail regarding the preparation of the Amended Tax Benefit Schedule and an Advisory Firm
Letter supporting such Amended Tax Benefit Schedule and (y) allow LFCM reasonable access to the appropriate representatives at Lazard and its Subsidiaries, Lazard Group and the Advisory Firm in connection with its review of such schedule. Such
Amended Tax Benefit Schedule shall become final and binding on the parties unless LFCM, within 30 calendar days after receiving such Amended Tax Benefit Schedule, provides the applicable Ltd Exchanging Subsidiary with notice of a material objection
to such Amended Tax Benefit Schedule made in good faith. If the parties, negotiating in good faith, are unable to successfully resolve the issues raised in such notice within 60 calendar days after such Amended Tax Benefit Schedule was delivered to
LFCM, the Ltd Exchanging Subsidiary and LFCM shall employ the Reconciliation Procedures. 
  
 (c) Applicable Principles. The Realized Tax Benefit or Realized Tax Detriment for each Covered Taxable Year is intended to measure
the decrease or increase in the actual Covered Tax liability of the Relevant Lazard Ltd Taxpayers for such Covered Taxable Year attributable to the Basis Adjustment and Imputed Interest, determined using a “with and without” methodology.
Carryovers or carrybacks of any tax item attributable to the Basis Adjustment and Imputed Interest (determined using such “with and without” 

  

 -12- 

 
methodology) shall be considered to be subject to the rules of the Code (or any successor U.S. Federal income tax statute) and the Treasury Regulations or
the appropriate provisions of U.S. state and local income and franchise Tax law, as applicable, governing the use, limitation and expiration of carryovers or carrybacks of the relevant type. If a carryover or carryback of any tax item includes a
portion that is attributable to the Basis Adjustment or Imputed Interest and another portion that is not, such portions shall be considered to be used in the order determined using such “with and without” methodology. Schedule C to this
Agreement provides illustrative examples of the applicable principles described in this Section 2.05(c) of this Agreement. 
  
 ARTICLE III 
  
 Tax Benefit Payments 
  
 SECTION 3.01. Payments. (a) Except as provided in Section 3.03, within 3 calendar days of the delivery of the Tax Benefit Schedule to LFCM for any Covered Taxable Year the Ltd Exchanging Subsidiaries shall pay
(i) to LFCM an amount equal to 80% of the Tax Benefit Payment (as defined below) for such Covered Taxable Year and (ii) to a national bank mutually agreeable to the Ltd Exchanging Subsidiaries, the Audit Committee and LFCM as escrow agent (the
“Escrow Agent”), an amount equal to 20% of the Tax Benefit Payment (as defined below) for such Covered Taxable Year. The Escrow Agent shall hold each Tax Benefit Payment it receives in escrow pursuant to a mutually agreeable escrow
agreement (the “Escrow Agreement”) between the Ltd Exchanging Subsidiaries and LFCM until the expiration of the applicable statute of limitations attributable to the Covered Taxable Year to which such Tax Benefit Payment relates.
Each Tax Benefit Payment shall be made by wire transfer of immediately available funds to the bank accounts of LFCM and the Escrow Agent previously designated by such parties to the Ltd Exchanging Subsidiaries. For the avoidance of doubt, no Tax
Benefit Payment shall be made in respect of estimated tax payments, including, without limitation, estimated Federal Income Tax payments. 
  
 (b) A “Tax Benefit Payment” shall equal, with respect to each Ltd Exchanging Subsidiary, 85% of the applicable Ltd
Exchanging Subsidiary’s Realized Tax Benefit, if any, for a Covered Taxable Year, 
  
 increased by: 
  
 (1) interest calculated at the Agreed Rate from the due date (without extensions) for filing the Tax Return with respect to Covered Taxes for such Covered Taxable Year); and 
  
 (2) the amount of the excess Realized Tax Benefit reflected on an Amended Tax Benefit Schedule for a
previous Covered Taxable Year over the Realized Tax Benefit (or Realized Tax Detriment) reflected on the Tax Benefit Schedule for such previous Covered Taxable Year; 
  
 and decreased by: 
  

 -13- 

 (3) an amount equal to the Ltd Exchanging Subsidiary’s Realized Tax Detriment (if
any) for any previous Covered Taxable Year; 
  
 (4) the amount of the excess Realized Tax Benefit reflected on the Tax Benefit Schedule for a previous Covered Taxable Year over the Realized Tax Benefit (or Realized Tax Detriment) reflected on the Amended Tax Benefit Schedule for such
previous Covered Taxable Year; 
  
 provided, however, that
the amounts described in Sections 3.01(b)(2), (3) and (4) shall not be taken into account in determining a Tax Benefit Payment attributable to any Covered Taxable Year to the extent of such amounts taken into account in determining any Tax Benefit
Payment in a preceding Covered Taxable Year. 
  
 (c) Within 3 days of receiving any Tax Benefit Payment, LFCM shall distribute such Tax Benefit Payment to each member of LFCM set forth on the schedule attached hereto as Schedule D, in accordance with the percentage indicated on such
Schedule D. 
  
 SECTION 3.02. No Duplicative Payments. No
duplicative payment of any amount (including interest) will be required under this Agreement. 
  
 SECTION 3.03. Suspension of Tax Benefit Payments Following Change Notice. 
  
 (a) If Lazard, its Subsidiaries or Lazard Group receives a 30-day letter, a final audit report, a statutory notice of deficiency or
similar written notice from any Taxing Authority with respect to the Tax treatment of the Redemption or any Taxable Exchange (a “Change Notice”), which, if sustained, would result in (i) a reduction in the amount of Realized Tax
Benefit (or the increase in the amount of Realized Tax Detriment) with respect to a Covered Taxable Year preceding the taxable year in which the Change Notice is received or (ii) a reduction in the amount of Tax Benefit Payments the Ltd Exchanging
Subsidiaries will be required to pay to LFCM with respect to Covered Taxable Years after and including the taxable year in which the Change Notice is received (collectively, the “Potential Reduction”), prompt written notice shall be
given to LFCM. 
  
 (b) From and after the date
such Change Notice is received until there is a Final Determination with respect to the adjustments proposed therein, 100% of any Tax Benefit Payments required to be made by the Ltd Exchanging Subsidiaries shall be paid by the Ltd Exchanging
Subsidiaries to the Escrow Agent until such time as the amounts paid to the Escrow Agent under Section 3.01(a)(ii) with respect to the Covered Year at issue in the Change Notice and this Section 3.03(b), in the aggregate, equal the amount of the
Potential Reduction (or, if earlier, until a Final Determination is received with respect to the Change Notice). 
  
 (c) If a Final Determination with respect to the Change Notice results in no adjustment to any Tax Benefit Payment, then 80% of the
amounts paid to the Escrow Agent pursuant to this Section 3.03 (along with interest earned on such funds) shall be distributed to LFCM in accordance with the Escrow Agreement. If the Final Determination result in an adjustment to any Tax Benefit
Payment, then the lesser of (i) the amounts paid 

  

 -14- 

 
to the Escrow Agent pursuant to this Section 3.03 and (ii) the amount of the adjustment to the Tax Benefit Payment, in each case, along with interest earned
on such funds, shall be distributed to the Ltd Exchanging Subsidiaries in accordance with the Escrow Agreement. 
  
 ARTICLE IV 
  
 Termination 
  
 SECTION 4.01. Early
Termination of Agreement. At any time after the second (2nd) anniversary of the date of this Agreement, the Ltd Exchanging Subsidiaries may terminate this Agreement with the consent of the Audit Committee by paying to LFCM the Early Termination
Payment as of the date of the Early Termination Notice (as defined below). The Ltd Exchanging Subsidiaries may terminate this Agreement upon the occurrence of a Change of Control Event by paying to LFCM the Change of Control Termination Payment as
of the date of the Early Termination Notice. Upon payment of the Early Termination Payment or the Change of Control Termination Payment by the Ltd Exchanging Subsidiaries, the Ltd Exchanging Subsidiaries shall have no further payment obligations
under this Agreement, other than for any (a) Tax Benefit Payment agreed to by the Ltd Exchanging Subsidiaries and LFCM as due and payable but unpaid as of the Early Termination Notice and (b) any Tax Benefit Payment due for the Covered Taxable Year
ending with or including the date of the Early Termination Notice (except to the extent that the amount described in clause (a) or (b) is included in the Early Termination Payment or the Change of Control Termination Payment, as the case may be).

  
 SECTION 4.02. Early Termination Notice. If the Ltd
Exchanging Subsidiaries choose to exercise their right of early termination under Section 4.01 above, the Ltd Exchanging Subsidiaries shall deliver to LFCM a notice (the “Early Termination Notice”) specifying the Ltd Exchanging
Subsidiaries’ intention to exercise such right and showing in reasonable detail the calculation of the Early Termination Payment or the Change of Control Termination Payment, as the case may be. At the time the Ltd Exchanging Subsidiaries
deliver the Early Termination Notice to LFCM, the Ltd Exchanging Subsidiaries shall (i) deliver to LFCM schedules and work papers providing reasonable detail regarding the calculation of the Early Termination Payment or the Change of Control
Termination Payment, as the case may be, in a manner consistent with the guidelines set forth in Section 4.03 of this Agreement and an Advisory Firm Letter supporting such calculation and (b) allow LFCM reasonable access to the appropriate
representatives at Lazard and its Subsidiaries, Lazard Group and the Advisory Firm in connection with its review of such calculation. The calculation contained in such Early Termination Notice shall become final and binding on the parties unless
LFCM, within 30 calendar days after receiving such calculation, provides the Ltd Exchanging Subsidiaries with notice of a material objection to such calculation made in good faith. If the parties, negotiating in good faith, are unable to
successfully resolve the issues raised in such calculation within 60 calendar days after such calculation was delivered to LFCM, the Ltd Exchanging Subsidiaries and LFCM shall employ the Reconciliation Procedures. 
  
 SECTION 4.03. Payment upon Early Termination. (a) Within 3 calendar
days of the delivery to LFCM of the Early Termination Notice or any amendment to the Early Termination Notice, the Ltd Exchanging Subsidiaries shall pay to LFCM an amount equal to the Early 

  

 -15- 

 
Termination Payment or the Change of Control Termination Payment, as the case may be. Such payment shall be made by wire transfer of immediately available
funds to a bank account designated by LFCM. 
  
 (b) The Early Termination Payment as of the Valuation Date shall equal the present value, discounted at the Early Termination Rate, of all Tax Benefit Payments that would be required to be paid by the Ltd Exchanging Subsidiaries to LFCM
during the period from the date of the Early Termination Notice through the Scheduled Termination Date assuming the Valuation Assumptions are applied. 
  
 (c) The Change of Control Termination Payment as of the Valuation Date shall equal the Early Termination Payment as of such date
multiplied by 80%. 
  
 SECTION 4.04. No Other Right of Early
Termination. For the avoidance of doubt, LFCM shall not be entitled to cause an early termination of this Agreement. 
  
 ARTICLE V 
  
 Subordination and Late Payments 
  
 SECTION 5.01. Subordination. Notwithstanding any other provision of this Agreement to the contrary, any Tax Benefit Payment, Early Termination
Payment or Change of Control Termination Payment required to be made by the Ltd Exchanging Subsidiaries to LFCM under this Agreement (a “Ltd Exchanging Subsidiary Payment”) shall rank subordinate and junior in right of payment to
any principal, interest or other amounts due and payable in respect of any debt of the Ltd Exchanging Subsidiaries (“Senior Obligations”) and shall rank pari passu with all current or future unsecured obligations of the Ltd
Exchanging Subsidiaries that are not Senior Obligations. 
  
 SECTION 5.02. Late Payments by the Ltd Exchanging Subsidiaries. The amount of all or any portion of a Ltd Exchanging Subsidiary Payment not made to LFCM when due under the terms of this Agreement shall be payable together with any
interest thereon, computed at the Agreed Rate and commencing from the date on which such Ltd Exchanging Subsidiary Payment was due and payable. 
  
 ARTICLE VI 
  
 No Disputes; Consistency; Cooperation 
  
 SECTION 6.01. LFCM Participation In Ltd Exchanging Subsidiary Tax Matters. Except as otherwise provided herein, the Ltd Exchanging Subsidiaries
shall have full responsibility for, and sole discretion over, all Tax matters concerning any Relevant Lazard Ltd Taxpayer, including, without limitation, the preparation, filing or amending of any Tax Return and defending, contesting or settling any
issue pertaining to Taxes. Notwithstanding the foregoing, the Ltd Exchanging Subsidiaries shall notify LFCM of, and keep LFCM reasonably informed with respect to, and LFCM shall have the right to participate in and monitor (but, for the avoidance of
doubt, not to control) the portion of any audit of the Relevant Lazard Ltd Taxpayers by a Taxing 

  

 -16- 

 
Authority the outcome of which is reasonably expected to affect LFCM’s rights under this Agreement. The Ltd Exchanging Subsidiaries shall provide to
LFCM reasonable opportunity to provide information and other input to the Ltd Exchanging Subsidiaries and its advisors concerning the conduct of any such portion of such audits. No Relevant Lazard Ltd Taxpayer shall settle or otherwise resolve any
audit or other challenge by a Taxing Authority relating to the Basis Adjustment or the deduction of Imputed Interest without the consent of the Audit Committee and LFCM, which consent LFCM shall not unreasonably withhold, condition or delay.

  
 SECTION 6.02. Consistency. Unless there is a
Determination to the contrary, the Relevant Lazard Ltd Taxpayers, LFCM and the Exchangeable Holders (in accordance with the LFCM Operating Agreement), on their own behalf and on behalf of each of their affiliates, agree to report and cause to be
reported for all U.S. purposes, including U.S. Federal, state and local income and franchise Tax purposes and U.S. financial reporting purposes, all Tax-related items relating to this Agreement (including, without limitation, the Basis Adjustment
and each Tax Benefit Payment) in a manner consistent with that specified by the Ltd Exchanging Subsidiaries in any schedule, letter or certificate required to be provided by or on behalf of the Ltd Exchanging Subsidiaries under this Agreement. In
the event that an Advisory Firm is replaced with another firm acceptable to the Audit Committee, such replacement Advisory Firm shall be required to perform its services under this Agreement using procedures and methodologies consistent with the
previous Advisory Firm, unless otherwise required by law or the Ltd Exchanging Subsidiaries, the Audit Committee and LFCM agree to the use of other procedures and methodologies. 
  
 SECTION 6.03. Cooperation. LFCM shall (and shall cause its affiliates to) (a) furnish to the Ltd Exchanging
Subsidiaries in a timely manner such information, documents and other materials as the Ltd Exchanging Subsidiaries may reasonably request for purposes of making any determination or computation necessary or appropriate under this Agreement,
preparing any Tax Return or contesting or defending any audit, examination or controversy with any Taxing Authority, (b) make its employees available to the Ltd Exchanging Subsidiaries and its representatives to provide explanations of documents and
materials and such other information as the Ltd Exchanging Subsidiaries or its representative may reasonably request in connection with any of the matters described in clause (a) above, and (c) reasonably cooperate in connection with any such
matter. 
  
 ARTICLE VII 
  
 General Provisions 
  
 SECTION 7.01. Notices. All notices, requests, claims, demands and
other communications hereunder shall be in writing and shall be deemed duly given and received (a) on the date of delivery if delivered personally, or by facsimile upon confirmation of transmission by the sender’s fax machine if sent on a
Business Day (or otherwise on the next Business Day) or (b) on the first Business Day following the date of dispatch if delivered by a recognized next-day courier service. All notices hereunder shall be delivered as set forth in Schedule E, or
pursuant to such other instructions as may be designated in writing by the party to receive such notice. Any party may change its address or fax number by giving the other party written notice of its new address or fax number in the manner set forth
above. 
  

 -17- 

 SECTION 7.02. Counterparts. This Agreement may be executed in one or more counterparts, all of
which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same
counterpart. 
  
 SECTION 7.03. Entire Agreement; No Third Party
Beneficiaries. This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof. This Agreement shall be binding upon and
inure solely to the benefit of each party hereto and their respective successors and permitted assigns, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any
nature whatsoever under or by reason of this Agreement. 
  
 SECTION 7.04. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York without giving effect to applicable principles of conflict of laws. 
  
 SECTION 7.05. Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good
faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent
possible. 
  
 SECTION 7.06. Successors; Assignment;
Amendments. LFCM may not assign this Agreement to any person without the prior written consent of the Ltd Exchanging Subsidiaries and the Audit Committee, which consent shall not be unreasonably withheld, conditioned or delayed; provided,
however, LFCM may pledge some or all of its rights, interests or entitlements under this Agreement to any U.S. money center bank in connection with a bona fide loan or other indebtedness; provided further, however LFCM may assign this
Agreement to one or more wholly owned subsidiaries of LFCM, which subsidiaries are subsequently distributed to the members of LFCM set forth on Schedule D. The Ltd Exchanging Subsidiaries may not assign any of their rights, interests or entitlements
under this Agreement without the consent of LFCM, not to be unreasonably withheld or delayed. Subject to each of the two immediately preceding sentences, this Agreement will be binding upon, inure to the benefit of and be enforceable by, the parties
and their respective successors and assigns including any acquirer of all or substantially all of the assets of Lazard. Lazard shall cause the Ltd Exchanging Subsidiaries to be the legal and beneficial owners of all of the direct or indirect
interests held by Lazard or any of its Subsidiaries in Lazard Group. In the event that Lazard ceases to be the owner of the Ltd Exchanging Subsidiaries, the successor to Lazard shall assume all of Lazard’s rights and obligations under this
Agreement. 
  

 -18- 

 No amendment to this Agreement shall be effective unless it is (i) in writing, (ii) signed by the Ltd
Exchanging Subsidiaries and LFCM and (iii) approved by the Audit Committee. 
  
 SECTION 7.07. Titles and Subtitles. The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement. 
  
 SECTION 7.08. Submission to Jurisdiction; Waivers. With respect to any
suit, action or proceeding relating to this Agreement (collectively, a “Proceeding”), each party to this Agreement irrevocably (a) consents and submits to the exclusive jurisdiction of the courts of the States of New York and
Delaware and any court of the U.S. located in the Borough of Manhattan in New York City or the State of Delaware; (b) waives any objection which such party may have at any time to the laying of venue of any Proceeding brought in any such court,
waives any claim that such Proceeding has been brought in an inconvenient forum and further waives the right to object, with respect to such Proceeding, that such court does not have jurisdiction over such party; (c) consents to the service of
process at the address set forth for notices in Section 7.01 herein; provided, however, that such manner of service of process shall not preclude the service of process in any other manner permitted under applicable law; and (d)
waives, to the fullest extent permitted by applicable law, any and all rights to trial by jury in connection with any Proceeding. 
  
 SECTION 7.09. Reconciliation. In the event that the Ltd Exchanging Subsidiaries and LFCM are unable to resolve a disagreement within the relevant
period designated in this Agreement, the matter shall be submitted for determination to a nationally recognized expert in the particular area of disagreement employed by a nationally recognized accounting firm or a law firm (other than the Advisory
Firm), which expert is mutually acceptable to all parties and the Audit Committee. If the matter is not resolved before any payment that is the subject of a disagreement is due or any Tax Return reflecting the subject of a disagreement is due, such
payment shall be made on the date prescribed by this Agreement and such Tax Return may be filed as prepared by the Ltd Exchanging Subsidiaries, subject to adjustment or amendment upon resolution. The determinations of the expert pursuant to this
Section 7.09 shall be binding on Lazard and its Subsidiaries, Lazard Group and LFCM absent manifest error. 
  
 SECTION 7.10. Withholding. The Ltd Exchanging Subsidiaries and the Escrow Agent shall be entitled to deduct and withhold from any payment payable
pursuant to this Agreement such amounts as the Ltd Exchanging Subsidiaries and the Escrow Agent are required to deduct and withhold with respect to the making of such payment under the Code, or any provision of state, local or foreign tax law. To
the extent that amounts are so withheld and paid over to the appropriate taxing authority by the Ltd Exchanging Subsidiaries or the Escrow Agent, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to LFCM.

  

 -19- 

 IN WITNESS WHEREOF, the Ltd Exchanging Subsidiaries and LFCM have duly executed this Agreement as of the date first
written above. 
  

			
	Ltd Sub A
		
	By	 	/s/ Scott D. Hoffman
	 	 	 Name: Scott D. Hoffman

	 	 	 Title:   General Counsel

	
	Ltd Sub B
		
	By	 	/s/ Scott D. Hoffman
	 	 	 Name: Scott D. Hoffman

	 	 	 Title:   Director

	
	LFCM HOLDINGS LLC
		
	By	 	/s/ Scott D. Hoffman
	 	 	 Name: Scott D. Hoffman

	 	 	 Title:   Authorized Person

  

 -20-Employee Benefits Agreement

 EXHIBIT 10.4 
  
 EMPLOYEE BENEFITS AGREEMENT 
  
 by and among 
  
 LAZARD LTD, 
  
 LAZARD GROUP LLC, 
  
 LAZ-MD HOLDINGS LLC 
  
 AND 
  
 LFCM HOLDINGS LLC 
  
 DATED AS OF May 10, 2005 

 TABLE OF CONTENTS 
  

					
	 ARTICLE I
	  	 DEFINITIONS
	  	1
	 1.1
	  	 401(k) Cost Invoice
	  	1
	 1.2
	  	 401(k) Eligible Employees
	  	1
	 1.3
	  	 401(k) Transition Period
	  	1
	 1.4
	  	 401(k) Plan Transfer
	  	1
	 1.5
	  	 Agreement
	  	1
	 1.6
	  	 Approved Leave of Absence
	  	1
	 1.7
	  	 Auditing Party
	  	2
	 1.8
	  	 Benefit Plan
	  	2
	 1.9
	  	 Close of the date hereof
	  	2
	 1.10
	  	 COBRA
	  	2
	 1.11
	  	 Code
	  	2
	 1.12
	  	 ERISA
	  	2
	 1.13
	  	 Employees on Leave
	  	2
	 1.14
	  	 Flex Account Statement
	  	2
	 1.15
	  	 Former Lazard Group Employee
	  	2
	 1.15
	  	 Former LFCM Employee
	  	2
	 1.17
	  	 Grandfathered LFCM Employee
	  	2
	 1.16
	  	 Health and Welfare Plans
	  	2
	 1.17
	  	 Health Cost Invoice
	  	2
	 1.18
	  	 Health Plan Bill
	  	2
	 1.19
	  	 Health Plan Transition Period
	  	3
	 1.20
	  	 Health Care Reimbursement Account
	  	3
	 1.21
	  	 HIPAA
	  	3
	 1.22
	  	 Immediately after the date hereof
	  	3
	 1.23
	  	 Insured Enrolled Total
	  	3
	 1.24
	  	 Lazard Group
	  	3
	 1.25
	  	 Lazard Group Cafeteria Plan
	  	3
	 1.26
	  	 Lazard Group Employee
	  	3
	 1.28
	  	 Lazard Group Health Plan
	  	3
	 1.29
	  	 Lazard Group Non-Qualified Pension Plan
	  	3
	 1.30
	  	 Lazard Group Pension Plan
	  	3
	 1.31
	  	 Lazard Group Profit-Sharing Plan
	  	3
	 1.32
	  	 Lazard Group Retiree Medical Benefits Plan
	  	3
	 1.34
	  	 Lazard Group Savings Plan
	  	3
	 1.35
	  	 LAZ-MD
	  	4
	 1.36
	  	 LFCM
	  	4
	 1.37
	  	 LFCM Cafeteria Plan
	  	4
	 1.38
	  	 LFCM Employee
	  	4
	 1.39
	  	 LFCM Savings Plan
	  	4
	 1.40
	  	 LFCM Savings Plan Trust
	  	4
	 1.41
	  	 Non-Parties
	  	4
	 1.42
	  	 Parties
	  	4
	 1.43
	  	 Separation Agreement
	  	4

  

 i 

					
	 ARTICLE II
	  	 GENERAL PRINCIPLES
	  	4
	 2.1
	  	 Employment of LFCM Employees
	  	4
	 2.2
	  	 Assumption and Retention of Liabilities; Related Assets
	  	4
	 2.3
	  	 LFCM Participation in Lazard Group Benefit Plans
	  	5
	 2.4
	  	 Service Recognition
	  	6
	 2.5
	  	 Non-U.S. Employees
	  	6
			
	 ARTICLE III
	  	 DEFINED CONTRIBUTION AND DEFINED BENEFIT RETIREMENT PLANS
	  	6
	 3.1
	  	 Savings Plan
	  	6
	 3.2
	  	 Lazard Group Pension Plan, Lazard Group Non-Qualified Pension Plan,
and Lazard Group Profit Sharing Plan
	  	8
			
	 ARTICLE IV
	  	 HEALTH AND WELFARE PLANS
	  	9
	 4.1
	  	 General
	  	9
	 4.2
	  	 Health Plan Transition Period
	  	10
	 4.3
	  	 Health Care Reimbursement Account
	  	11
	 4.4
	  	 Continued Coverage of Employees on Leave and Former LFCM Employees
under the Lazard Group Health and Welfare Benefits
	  	12
	 4.5
	  	 Vacation
	  	12
	 4.6
	  	 Workers’ Compensation Liabilities
	  	13
	 4.7
	  	 Post Retirement Welfare Benefits
	  	13
	 4.8
	  	 COBRA and HIPAA Compliance
	  	14
			
	 ARTICLE V
	  	 COMPENSATION AND EMPLOYMENT ARRANGEMENTS
	  	14
	 5.1
	  	 Payroll
	  	14
	 5.2
	  	 Annual Incentive Awards
	  	14
	 5.3
	  	 Employment and Other Individual Agreements
	  	14
			
	 ARTICLE VI
	  	 GENERAL AND ADMINISTRATIVE
	  	15
	 6.1
	  	 Sharing of Participant Information
	  	15
	 6.2
	  	 Reasonable Efforts/Cooperation
	  	15
	 6.3
	  	 No Third-Party Beneficiaries
	  	15
	 6.4
	  	 Audit Rights With Respect to Information Provided
	  	15
	 6.5
	  	 Payroll Taxes and Reporting of Compensation
	  	16
	 6.6
	  	 Tax Deductions
	  	16
	 6.7
	  	 Consent of Third Parties
	  	17
			
	 ARTICLE VII
	  	 MISCELLANEOUS
	  	17
	 7.1
	  	 Relationship of Parties
	  	17
	 7.2
	  	 Affiliates
	  	17
	 7.3
	  	 Incorporation of Separation Agreement Provisions
	  	17

  

 ii 

 EMPLOYEE BENEFITS AGREEMENT 
  
 This EMPLOYEE BENEFITS AGREEMENT (this “Agreement”), dated as of May 10, 2005 is by and between Lazard Ltd,
a Bermuda limited company (“Lazard Ltd”), Lazard LLC, a Delaware limited liability company and currently a wholly owned subsidiary of LAZ-MD (as defined below) that will be renamed “Lazard Group LLC” (“Lazard
Group”), LAZ-MD Holdings LLC, a Delaware limited liability company (formerly known as LF Holdings LLC) (“LAZ-MD”), and LFCM Holdings LLC, a Delaware limited liability company and currently a wholly owned subsidiary of
Lazard Group (“LFCM,” and together with Lazard Ltd, Lazard Group and LAZ-MD, the “Parties” and each a “Party”). Capitalized terms used herein and not otherwise defined shall have the respective
meanings assigned to them in Article I hereof or assigned to them in the Separation Agreement (as defined below), as applicable. 
  
 WHEREAS, the Parties have entered into a Master Separation Agreement, dated as of the date hereof (the “Separation Agreement”), and other
ancillary agreements that will govern certain matters relating to the Separation; 
  
 WHEREAS, pursuant to the Separation Agreement, the Parties have agreed to enter into this Agreement for the purpose of allocating assets, Liabilities and responsibilities with respect to certain employee compensation
and benefit plans and programs between and among them; and 
  
 WHEREAS, the employment of the LFCM Employees (as defined below) has been transferred from the Lazard Group Companies to the LFCM Companies. 
  
 NOW, THEREFORE, the Parties, intending to be legally bound, agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 For purposes of this Agreement,
the following terms shall have the following meanings: 
  
 1.1
“401(k) Cost Invoice” has the meaning set forth in Section 3.1(a)(ii). 
  
 1.2 “401(k) Eligible Employees” has the meaning set forth in Section 3.1(a)(i). 
  
 1.3 “401(k) Transition Period” has the meaning set forth in Section 3.1(a)(i). 
  
 1.4 “401(k) Plan Transfer” has the meaning set forth in
Section 3.1(b). 
  
 1.5 “Agreement” is defined in
the preamble to this Agreement. 
  
 1.6 “Approved Leave of
Absence” means an absence from active service (i) due to an individual’s inability to perform his or her regular job duties by reason of illness or injury and resulting in eligibility to receive benefits pursuant to the terms of the
applicable short-term disability insurance program, salary continuation program (including child care paid leave), extended medical leave policy, workers’ compensation program or long-term disability insurance program covering such individual,
or (ii) pursuant to an approved leave policy with a guaranteed right of reinstatement. 
  

 1.7 “Auditing Party” has the meaning set forth in Section 6.4(a). 
  
 1.8 “Benefit Plan” shall mean, with respect to an entity or
any of its Subsidiaries, each “employee benefit plan” (as defined in Section 3(3) of ERISA, but whether or not subject to ERISA) sponsored, maintained or contributed to by such entity or any of its Subsidiaries (or to which such entity or
any of its Subsidiaries contributes or is required to contribute). When immediately preceded by “Lazard Group,” Benefit Plan means any Benefit Plan sponsored, maintained or contributed to by Lazard Group or a Lazard Group Company. When
immediately preceded by “LFCM,” Benefit Plan means any Benefit Plan sponsored, maintained or contributed to by LFCM or any LFCM Company. 
  
 1.9 “Close of the date hereof” means 11:59:59 P.M., Eastern Standard Time or Eastern Daylight Time (whichever shall then be in effect),
on the date hereof. 
  
 1.10 “COBRA” means the
continuation coverage requirements for “group health plans” under Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and as codified in Code § 4980B and ERISA §§ 601 through 608. 

 
 1.11 “Code” means the Internal Revenue Code of 1986, as
amended, or any successor federal income tax law. Reference to a specific Code provision also includes any proposed, temporary or final regulation in force under that provision. 
  
 1.12 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. Reference to a specific
provision of ERISA also includes any proposed, temporary or final regulation in force under that provision. 
  
 1.13 “Employees on Leave” has the meaning set forth in Section 1.38. 
  
 1.14 “Flex Account Statement” has the meaning set forth in Section 4.3. 
  
 1.15 “Former Lazard Group Employee” means any individual
who, as of the date hereof, is (x) a former employee or partner of a Lazard Group Company or a LFCM Company and (y) not a Former LFCM Employee, LFCM Employee or Lazard Group Employee. 
  
 1.16 “Former LFCM Employee” means any individual who, as of the date hereof, is a former employee or
partner of a Lazard Group Company or a LFCM Company (and is not a Lazard Group Employee or LFCM Employee) and whose employment or service, as of immediately prior to such individual’s last day of employment or service with a Lazard Group
Company or LFCM Company, consisted primarily of providing services to the LFCM Businesses. 
  
 1.17 “Grandfathered LFCM Employee” has the meaning set forth in Section 4.7. 
  
 1.18 “Health and Welfare Plans” shall mean any plan, fund or program which was established or is maintained for the purpose of providing
for its participants or their beneficiaries, through the purchase of insurance or otherwise, medical, dental, vision, surgical or hospital care or benefits, or benefits in the event of sickness, accident, disability, death or unemployment, including
any such plan, fund or program as defined in Section 3(1) of ERISA. When immediately preceded by “Lazard Group,” Health and Welfare Plans means each Health and Welfare Plan 

  

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that is a Lazard Group Benefit Plan. When immediately preceded by “LFCM,” Health and Welfare Plans means each Health and Welfare Plan that is a
LFCM Benefit Plan. 
  
 1.19 “Health Cost Invoice”
has the meaning set forth in Section 4.2(b). 
  
 1.20
“Health Plan Bill” has the meaning set forth in Section 4.2(b). 
  
 1.21 “Health Plan Transition Period” has the meaning set forth in Section 4.2(a). 
  
 1.22 “Health Care Reimbursement Account” has the meaning set forth in Section 4.3. 
  
 1.23 “HIPAA” means the health insurance portability and
accountability requirements for “group health plans” under the Health Insurance Portability and Accountability Act of 1996, as amended. 
  
 1.24 “Immediately after the date hereof” means on the first moment of the day after the date hereof. 
  
 1.25 “Insured Enrolled Total” has the meaning set forth in
Section 4.2(b). 
  
 1.26 “Lazard Group” is
defined in the preamble to this Agreement. 
  
 1.27
“Lazard Group Cafeteria Plan” means one or more plans, maintained by the Lazard Group Companies, each of which is intended to qualify under Section 125 of the Code and includes a healthcare flexible spending reimbursement account
arrangement. 
  
 1.28 “Lazard Group Employee”
means any individual who, immediately prior to the Distribution Time, is either actively employed by or providing services to, including as a partner, or then on Approved Leave of Absence from, any Lazard Group Company. 
  
 1.29 “Lazard Group Health Plan” means each of the CIGNA PPO
Plan, CIGNA Indemnity Plan, AETNA HMO Plan, HIP HMO Plan, CIGNA High Deductible Health Plan, CIGNA Catastrophic Plan, MetLife Dental Plan and the Vision Service Plan sponsored or maintained by Lazard Group as of the date hereof. 
  
 1.30 “Lazard Group Non-Qualified Pension Plan” means the
Lazard Frères & Co. LLC Employees’ Pension Plan Supplement. 
  
 1.31 “Lazard Group Pension Plan” means the Lazard Frères & Co. LLC Employees’ Pension Plan. 
  
 1.32 “Lazard Group Profit-Sharing Plan” means the Lazard Frères & Co. LLC Profit Sharing Plan. 
  
 1.33 “Lazard Group Retiree Medical Benefits Plan” means the
Health and Welfare Plan of Lazard Group providing hospital, medical and prescription benefits for retirees. 
  
 1.34 “Lazard Group Savings Plan” means the Lazard Frères & Co. LLC Employees’ Savings Plan, as in effect from time to
time. 
  

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 1.35 “LAZ-MD” is defined in the preamble to this Agreement. 
  
 1.36 “LFCM” is defined in the preamble to this Agreement.

  
 1.37 “LFCM Cafeteria Plan” means one or more
plans, maintained by LFCM or any of its affiliates, each of which is intended to qualify under Section 125 of the Code and includes a healthcare flexible spending reimbursement account arrangement. 
  
 1.38 “LFCM Employee” means the individuals listed on
Exhibit A. Exhibit B lists the employees on Approved Leave of Absence from the Lazard Group Companies who would have been classified as LFCM Employees were they actively providing services as of the date hereof (the “Employees
on Leave”). An Employee on Leave shall not be considered an LFCM Employee for any purpose unless and until such employee returns to active service within the applicable period during which such a return is required under the terms of the
applicable Approved Leave of Absence, in which case such employee will return to the employ or service of the applicable LFCM Company and be treated as an LFCM Employee for purposes of this Agreement (treating references to the “date
hereof,” events occurring “on the date hereof,” the “Distribution Time” and the “Contribution Effective Time” as referring to the date of such return to active service for purposes of application of the provisions
of this Agreement to such employee). 
  
 1.39 “LFCM
Savings Plan” means the 401(k) savings plan to be established by LFCM pursuant to Section 3.1 of this Agreement, as in effect as of the time relevant to the applicable provision of this agreement. 
  
 1.40 “LFCM Savings Plan Trust” means a trust relating to the
LFCM Savings Plan intended to qualify under Section 401(a) and be exempt under Section 501(a) of the Code. 
  
 1.41 “Non-Parties” has the meaning set forth in Section 6.4(b). 
  
 1.42 “Parties” is defined in the preamble to this Agreement. 
  
 1.43 “Separation Agreement” is defined in the recitals to
this Agreement. 
  
 ARTICLE II 
 GENERAL PRINCIPLES 
  
 2.1 Employment of LFCM Employees. No later than immediately prior to the Distribution Time, the employment of all LFCM Employees shall have been
transferred to LFCM or another LFCM Company, and all LFCM Employees shall continue to be employees of LFCM or another LFCM Company, as the case may be, immediately after the Distribution Time. 
  
 2.2 Assumption and Retention of Liabilities; Related Assets.

  
 (a) Lazard Group Employees and Former
Lazard Group Employees. From and after the Contribution Effective Time, except as expressly provided in this Agreement, the Lazard Group Companies shall retain, and Lazard Group hereby agrees to pay, perform, fulfill and discharge, in due course
in full (i) all Liabilities under all Lazard Group Benefit Plans, (ii) all Liabilities with respect to the employment or performance of services or termination of employ- 

  

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ment or services of all Lazard Group Employees, Former Lazard Group Employees and other service providers to the Lazard Group Businesses (including any
individual who is, or was, an independent contractor, temporary employee, temporary service worker, consultant, freelancer, agency employee, leased employee, on-call worker, incidental worker or non-payroll worker of any Lazard Group Company or in
any other employment, non-employment or retainer arrangement or relationship with any Lazard Group Company or with or for the benefit of the Lazard Group Businesses), and their respective dependents and beneficiaries, in each case to the extent
arising in connection with or as a result of employment with or the performance of services to any Lazard Group Company or to or for the benefit of the Lazard Group Businesses, and (iii) all Liabilities that are expressly assigned to or retained by
the Lazard Group under this Agreement, in each case, regardless of when or where such Liabilities arose or arise, or whether the facts on which they are based occurred prior to or subsequent to the date hereof. All assets held in trust to fund the
Lazard Group Benefit Plans and all insurance policies funding the Lazard Group Benefit Plans shall be Lazard Group Assets, except to the extent specifically provided in Sections 3.1(b) and 4.3 of this Agreement. 
  
 (b) LFCM Employees; Former LFCM Employees and Employees
on Leave. From and after the Contribution Effective Time, except as expressly provided in this Agreement, LFCM and the LFCM Companies shall assume or retain, as applicable, and LFCM hereby agrees to pay, perform, fulfill and discharge, in due
course in full (i) all Liabilities under all LFCM Benefit Plans, (ii) all Liabilities with respect to the employment or performance of services or termination of employment or services of all LFCM Employees, Former LFCM Employees, Employees on Leave
and other service providers to the LFCM Businesses (including any individual who is, or was, an independent contractor, temporary employee, temporary service worker, consultant, freelancer, agency employee, leased employee, on-call worker,
incidental worker or non-payroll worker of LFCM or a LFCM Company or in any other employment, non-employment or retainer arrangement or relationship with LFCM or a LFCM Company or with or for the benefit of the LFCM Businesses), and their respective
dependents and beneficiaries, in each case to the extent arising in connection with or as a result of employment with or the performance of services to any LFCM Company or to or for the benefit of the LFCM Businesses, and (iii) all Liabilities that
are expressly assigned to or retained by LFCM or any LFCM Company, or for which LFCM has an obligation to reimburse Lazard Group, under this Agreement, in each case, regardless of when or where such Liabilities arose or arise, or whether the facts
on which they are based occurred prior to or subsequent to the date hereof. To the extent that LFCM or an LFCM Company assumes or retains a Liability pursuant to this Agreement but such Liability must be satisfied in the first instance by Lazard
Group, whether directly or through a Lazard Group Benefit Plan, LFCM or the applicable LFCM Company shall promptly reimburse Lazard Group or such plan for such Liability in an amount equal to the out-of-pocket cost to Lazard Group, which
out-of-pocket cost shall be reduced by any insurance proceeds or employee contributions that Lazard Group actually receives in respect of such Liability. To the extent not otherwise specifically provided for in this Agreement, the billing and
payment procedures set forth in Section 3.1(a)(ii) below shall apply to the reimbursement obligations of LFCM under this Agreement. 
  
 2.3 LFCM Participation in Lazard Group Benefit Plans. Except as expressly provided in this Agreement, effective as of the Close of the date hereof,
the LFCM Employees shall no longer be eligible actively to participate in the Lazard Group Benefit Plans and, to the extent ap- 

  

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plicable, LFCM and each other LFCM Company shall cease to be a participating employer in any Lazard Group Benefit Plan. 
  
 2.4 Service Recognition. LFCM shall cause the LFCM Benefit Plans with
respect to which service is a relevant factor to credit the LFCM Employees who are employed by the LFCM Companies immediately following the Distribution Time with service before the Distribution Time recognized by the Lazard Group Companies under
the terms of Lazard Group Benefit Plans with respect to which service is a relevant factor, except (a) to the extent duplication of benefits would result and (b) for purposes of benefit accruals under any defined benefit pension plan. 
  
 2.5 Non-U.S. Employees. Notwithstanding anything else contained
herein, none of the following provisions of this Agreement shall apply with respect to Lazard Group Employees, LFCM Employees, Former Lazard Group Employees or Former LFCM Group Employees who are employed outside of the United States: Article III
and Sections 4.2, 4.3, 4,4, 4.6, 4.7 and 4.8. 
  
 ARTICLE III

 DEFINED CONTRIBUTION AND DEFINED BENEFIT RETIREMENT PLANS 
  
 3.1 Savings Plan. 
  
 (a) 401(k) Transition Period. 
  
 (i) Lazard Group agrees that to the extent it continues to maintain and administer the Lazard Group Savings Plan during the period (the
“401(k) Transition Period”) commencing on the date hereof and ending on December 31, 2005 (unless the Parties agree to terminate the 401(k) Transition Period on an earlier date), Lazard Group will permit (A) the LFCM Employees who
participated in the Lazard Group Savings Plan prior to the date hereof to continue to participate, (B) the LFCM Employees who become eligible to participate in the Lazard Group Savings Plan during the 401(k) Transition Period to commence
participation in such plan and (C) the employees hired by LFCM or an LFCM Company after the date hereof and who become eligible to participate in the Lazard Group Savings Plan during the 401(k) Transition Period to commence participation in such
plan (the employees referred to in clauses (A), (B) and (C) are hereinafter referred to as the “401(k) Eligible Employees”), in accordance with the terms of the Lazard Group Savings Plan and on the terms set forth in this Section
3.1(a). Prior to the date hereof, the Parties have taken all actions required or appropriate (including, without limitation, certain amendments of the Lazard Group Savings Plan and the approval by the authorized board or committee (or authorized
officer) of LFCM of the adoption of the Lazard Group Savings Plan and the execution of an adoption agreement effecting such adoption) to provide that LFCM shall adopt the Lazard Group Savings Plan, so that LFCM and any LFCM Companies that employ
401(k) Eligible Employees will each become a participating employer in the Lazard Group Savings Plan during the 401(k) Transition Period. During the 401(k) Transition Period, Lazard Group shall use its reasonable best efforts to maintain and
administer the Lazard Group Savings Plan (or cause the Lazard Group Savings Plan to be maintained and administered) in material compliance with applicable law. During the 401(k) Transition Period, LFCM shall provide, or cause to be provided, to the
Lazard Group or the recordkeeper or trustee of the Lazard Group Savings Plan all information required to administer and operate the Lazard Group Savings 

  

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Plan with respect to the participation of the 401(k) Eligible Employees, including without limitation, providing (to the extent applicable) information with
respect to such employees’ contribution and investment elections, providing payroll information and paying (or reimbursing) cash contributions (employee and employer contributions) to Lazard Group (or, at the option of Lazard Group, directly to
the Lazard Group Savings Plan and its recordkeeper(s) or trustee, as applicable), to effect such participation. 
  
 (ii) Reimbursement of Expenses. No later than 30 days after the date on which any invoice (including supporting documentation in
reasonable detail) (a “401(k) Cost Invoice”) from Lazard Group or the recordkeeper of the Lazard Group Savings Plan has become final and binding as provided below, LFCM shall reimburse Lazard Group, any Lazard Group Company or the
Lazard Group Savings Plan for any reasonable fees, costs and expenses actually incurred by the Lazard Group Companies or by the Lazard Group Savings Plan in connection with the continued administration and operation by Lazard Group of the Lazard
Group Savings Plan with respect to the 401(k) Eligible Employees in a manner consistent with its past practices, including, without limitation, any per participant fee charged by the recordkeeper for each participating 401(k) Eligible Employee
during the 401(k) Transition Period and any incremental costs associated with the fact that the 401(k) Eligible Employees are entitled to participate during the 401(k) Transition Period. Lazard Group and the recordkeeper of the Lazard Group Savings
Plan shall submit 401(k) Cost Invoices to LFCM on no more frequent a basis than one per month. Unless LFCM notifies Lazard Group in writing within 15 days following receipt of a 401(k) Cost Invoice of any objection with respect thereto, such 401(k)
Cost Invoice shall become final and binding on the Parties. Any objections or disputes with respect to a 401(k) Cost Invoice shall be resolved between the Parties (and to the extent necessary an outside independent consultant or accountant) within
15 days following the objection, unless the Parties consent to a longer period. The LFCM Companies shall cooperate with Lazard Group in making all filings or reports required under the Code or ERISA, including, without limitation, the Form 5500 for
the 2005 plan year, and in distributing any employee communications or materials to the 401(k) Eligible Employees. 
  
 (iii) Indemnification. LFCM shall indemnify and hold harmless the Lazard Group Companies and their respective directors, officers,
employees, agents and representatives, and the Lazard Group Savings Plan and its fiduciaries from and against any Indemnifiable Losses to the extent arising from, relating to or otherwise in respect of (A) the participation of the 401(k) Eligible
Employees in the Lazard Group Savings Plan during the 401(k) Transition Period, (B) the adoption by the applicable LFCM Companies of the Lazard Group Savings Plan during the 401(k) Transition Period and (C) each applicable LFCM Company’s status
as a participating employer under the Lazard Group Savings Plan during the 401(k) Transition Period; provided, that no indemnification by LFCM shall be required, and Lazard Group shall indemnify and hold harmless the LFCM Companies and their
respective directors, officers, employees, agents and representatives from and against any such Indemnifiable Losses, to the extent that such Indemnifiable Losses result from the willful misconduct or gross breach of fiduciary duty of the Lazard
Group Companies or any of their respective directors, officers or employees, in the maintenance or administration of the Lazard Group Savings Plan during the 401(k) Transition Period. 
  

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 (b) Plan-to-Plan Transfer of Assets. As soon as practicable after the date hereof
but in no event later than December 31, 2005, LFCM shall establish the LFCM Savings Plan and the LFCM Savings Plan Trust. As soon as practicable following the conclusion of the 401(k) Transition Period, and subject to (i) the receipt by LFCM of
evidence reasonably satisfactory to LFCM that the Lazard Group Savings Plan qualifies under Section 401(a) of the Code, (ii) the receipt by Lazard Group of evidence reasonably satisfactory to Lazard Group that the LFCM Savings Plan qualifies under
Section 401(a) of the Code (which mutually satisfactory evidence shall be provided as soon as practicable following the end of 401(k) Transition Period (but no later than 15 days thereafter) and may be provided in the form of an opinion of counsel)
and (iii) the expiration of the 30-day period following the filing of any required Forms 5310-A with the Internal Revenue Service by the plan administrator of the Lazard Group Savings Plan and/or the LFCM Savings Plan (which, to the extent required
by applicable law, shall be filed as soon as practicable following the date hereof), Lazard Group and LFCM shall take all action required or appropriate to transfer (the “401(k) Plan Transfer”) to the LFCM Savings Plan the account
balances and liabilities under the Lazard Group Savings Plan of all the participants in the Lazard Group Savings Plan who were employed by, or on Approved Leave of Absence (under an applicable policy or program of LFCM) from, an LFCM Company as of
the conclusion of the 401(k) Transition Period (collectively, the “401(k) Transfer Employees”). Such transfers shall be made in cash (unless the Parties otherwise agree to make some or all of such transfer in kind) and, in the case
of outstanding participant loans, notes equal in value to the loan account balances to be transferred, determined as of the most recent valuation date available under the Lazard Group Savings Plan preceding the 401(k) Plan Transfer. From and after
the date of the 401(k) Plan Transfer, the LFCM Savings Plan shall assume all liabilities of the Lazard Group Companies in respect of the 401(k) Transfer Employees under the Lazard Group Savings Plan, and LFCM shall indemnify and hold harmless the
Lazard Group Companies and their respective directors, officers, employees, agents and representatives and the Lazard Group Savings Plan for any Indemnifiable Losses in connection with such liabilities, subject to the right to receive
indemnification from Lazard Group Companies under the proviso to Section 3.1(a)(iii) with respect to the maintenance or administration of the Lazard Group Savings Plan during the 401(k) Transition Period. 
  
 (c) Former Employees. Lazard Group shall retain all
Liabilities relating to, arising out of or resulting from claims by or on behalf of Former Lazard Group Employees and Former LFCM Employees with respect to the Lazard Group Savings Plan. 
  
 3.2 Lazard Group Pension Plan, Lazard Group Non-Qualified Pension Plan and Lazard Group Profit Sharing Plan.

  
 (a) Lazard Group Pension Plan. From
and after the Distribution Time, Lazard Group shall retain (i) sponsorship of the Lazard Group Pension Plan and its related trust and any other trust or other funding arrangement established or maintained with respect to such plan, or any assets
held as of the date hereof with respect to such plan, and (ii) all Liabilities relating to, arising out of or resulting from claims incurred by or on behalf of any individuals with respect to benefits under the Lazard Group Pension Plan. 

 
 (b) Lazard Group Non-Qualified Pension Plan. From
and after the Distribution Time, Lazard Group shall retain (i) sponsorship of the Lazard Group Non-Qualified Pension 

  

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Plan and any related trusts or other funding arrangements established or maintained with respect to such plan, or any assets held as of the date hereof with
respect to such plan, and (ii) all Liabilities relating to, arising out of or resulting from claims incurred by or on behalf of any individuals with respect to benefits under the Lazard Group Non-Qualified Pension Plan. 
  
 (c) Lazard Group Profit Sharing Plan. From and after
the Distribution Time, Lazard Group shall retain (i) sponsorship of the Lazard Group Profit Sharing Plan and its related trust and any other trust or other funding arrangement established or maintained with respect to such plan, or any assets held
as of the date hereof with respect to such plan, and (ii) all Liabilities relating to, arising out of or resulting from claims incurred by or on behalf of any individuals with respect to benefits under the Lazard Group Profit Sharing Plan.

  
 (d) Cessation of Participation;
Acceleration of Vesting. Effective as of the Distribution Time, each LFCM Employee who is a participant in the Lazard Group Pension Plan, the Lazard Group Non-Qualified Pension Plan or the Lazard Group Profit-Sharing Plan, shall be deemed, for
purposes of such plans, to have terminated employment with Lazard Group. Lazard Group shall amend the Lazard Group Non-Qualified Pension Plan, the Lazard Group Pension Plan and the Lazard Group Profit-Sharing Plan to cause each LFCM Employee who
participates in each such plan to be fully vested in his or her accrued benefits under each such plan effective as of the Distribution Time. 
  
 ARTICLE IV 
 HEALTH AND WELFARE PLANS

  
 4.1 General. 
  
 (a) Establishment of LFCM Health and Welfare Plans.
Effective no later than the date hereof, LFCM shall have adopted Health and Welfare Plans for the benefit of LFCM Employees (it being understood that pursuant to Section 4.2, LFCM Employees will participate in the Lazard Group Health Plans during
the Health Plan Transition Period). LFCM shall be responsible for all Liabilities relating to, arising out of or resulting from health and welfare coverage or claims incurred by or on behalf of LFCM Employees or their covered dependents under the
LFCM Health and Welfare Plans after the Close of the date hereof, which for the avoidance of doubt shall not be interpreted as relieving LFCM from its reimbursement obligations under Section 4.2 of this Agreement. With respect to the coverage of the
LFCM Employees under the LFCM Health and Welfare Plans, (i) limitations on benefits due to pre-existing conditions shall be waived for any such employee enrolled in any Lazard Group Health and Welfare Plan as of the conclusion of the Health Plan
Transition Period (or, in the case of any such plan with respect to which continued coverage is not being provided during the Health Plan Transition Period, as of the date hereof), to the extent waived under such Lazard Group Health and Welfare
Plan, (ii) any out-of-pocket annual maximums and deductibles taken into account under a Lazard Health and Welfare Plan for any LFCM Employee in the calendar year during which occurs the conclusion of the Health Plan Transition Period shall be
credited under the corresponding LFCM Health and Welfare Plan for the same calendar year, and (iii) a LFCM Employee’s prior claim experience under the Lazard Group Health and Welfare Plans will be taken into account with respect to aggregate
lifetime maximum benefits available under the LFCM Health and Welfare Plans. 
  

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 (b) Retention of Sponsorship and Liabilities. Lazard Group shall, except to the
extent specifically provided otherwise in this Article IV, including Sections 4.2, 4.4 and 4.7, retain (i) sponsorship of all Lazard Group Health and Welfare Plans and any trust or other funding arrangement established or maintained with respect to
such plans or any assets held as of the date hereof with respect to such plans, (ii) all Liabilities relating to, arising out of, or resulting from health and welfare coverage or claims incurred by or on behalf of Lazard Group Employees, LFCM
Employees, Employees on Leave, Former Lazard Group Employees and Former LFCM Employees or their covered dependents under the Lazard Group Health and Welfare Plans on or before the Close of the date hereof, and (iii) all Liabilities relating to,
arising out of, or resulting from health and welfare coverage or claims incurred by or on behalf of Lazard Group Employees, Former Lazard Group Employees, Employees on Leave and Former LFCM Employees or their covered dependents after the Close of
the date hereof under the Lazard Group Health and Welfare Plans. 
  
 (c) Determination of When Claim Incurred. A claim or Liability (i) for medical, dental, vision and/or prescription drug benefits shall be deemed to be incurred upon the rendering of health services giving rise
to the obligation to pay such benefits; (ii) for life insurance and accidental death and dismemberment and business travel accident insurance benefits shall be deemed to be incurred upon the occurrence of the event giving rise to the entitlement to
such benefits; (iii) short-term disability, salary continuation and long-term disability benefits, upon the date on which an individual incurs (or, if required under the terms of the relevant Lazard Group disability plan, is diagnosed with, in
accordance with the terms of such plan) an injury or illness that qualifies (or would qualify following an absence from active employment for the requisite period of time) the individual for short-term disability, salary continuation or long-term
disability benefits under the applicable Lazard Group disability plan; and (iv) for a period of continuous hospitalization shall be deemed to be incurred on the date of admission to the hospital. 
  
 4.2 Health Plan Transition Period. 
  
 (a) Health Plan Transition Period. During the period
(the “Health Plan Transition Period”) beginning on the date hereof and concluding on the final day of the month during which occurs the 90th day following the date hereof (unless the Parties agree to conclude the Health Plan
Transition Period on an earlier date), LFCM Employees and their eligible covered dependents who are participants in the Lazard Group Health Plans as of the date hereof shall continue to be eligible to participate in such plans to the extent they
continue to meet the requirements for such participation (treating employment with the LFCM Companies as if it were employment with Lazard Group), in accordance with terms of such plans as in effect from time to time. 
  
 (b) Reimbursement of Costs. With respect to each
month or partial month ending during the Health Plan Transition Period, no later than 30 days after the date on which an invoice (including supporting documentation in reasonable detail) (a “Health Cost Invoice”) with respect to a
Lazard Group Health Plan has become final and binding as provided below, LFCM shall pay to Lazard Group the sum of the following amounts: (i) with respect to each Lazard Group Health Plan (other than the Lazard Group Vision Service Plan), the
monthly maximum liability amount for the 2005 calendar year allocable to the LFCM Businesses as in effect immediately prior to the Distribution Time, pro-rated based on days for any partial month and adjusted 

  

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to reflect the fact that Former LFCM Employees and Employees on Leave are not eligible to participate in such plans during the Health Plan Transition Period,
for such plan for each month or partial month in which the LFCM Employees and their eligible covered dependents participate in such Lazard Group Health Plan during the Transition Period; (ii) with respect to the Lazard Group Vision Service Plan, an
amount equal to the actual cost of satisfying reimbursable claims of LFCM Employees incurred under such plan during such month or partial month; and (iii) any reasonable fees, costs and expenses actually incurred during such month by Lazard Group
Companies in connection with (A) the establishment and implementation of the arrangements permitting the LFCM Employees to continue to participate in such plan during the Health Plan Transition Period, and (B) the continued administration and
operation of such plan by Lazard Group with respect to the participating LFCM Employees in a manner consistent with its past practices, including, without limitation, any incremental costs associated with the Health Plan Transition Period. Unless
LFCM notifies Lazard Group in writing within 15 days following receipt of a Health Cost Invoice of any objection with respect thereto, such Health Cost Invoice shall become final and binding on the Parties. Any objections or disputes with respect to
a Health Cost Invoice shall be resolved between the Parties (and to the extent necessary an outside independent consultant or accountant) within 15 days following the objection, unless the Parties consent to a longer period. 
  
 (c) Indemnification. LFCM shall indemnify and hold
harmless the Lazard Group Companies and their respective directors, officers, employees, agents and representatives, from and against any Indemnifiable Losses to the extent arising from, relating to or otherwise in respect of the participation of
the LFCM Employees in the Lazard Group Health Plans during the Health Plan Transition Period; provided, that no indemnification by LFCM shall be required, and Lazard Group shall indemnify and hold harmless the LFCM Companies and their
respective directors, officers, employees, agents and representatives from and against any such Indemnifiable Losses, to the extent that such Indemnifiable Losses result from the willful misconduct of the Lazard Group Companies or any of their
respective directors, officers or employees, in the maintenance or administration of the Lazard Group Health Plans during the Health Plan Transition Period. 
  
 4.3 Health Care Reimbursement Account. With respect to each LFCM Employee who as of the date hereof participates in a healthcare flexible spending
reimbursement account (“Health Care Reimbursement Account”) under the Lazard Group Cafeteria Plan, in accordance with the procedures set forth in this paragraph, LFCM shall cause the LFCM Cafeteria Plan to accept a spin-off/transfer
of the Health Care Reimbursement Account for such LFCM Employee from the Lazard Group Cafeteria Plan and shall honor and continue through the end of the 2005 calendar year the elections made by each such LFCM Employee in respect of such Health Care
Reimbursement Account that are in effect immediately prior to the date hereof. LFCM shall take all actions it deems necessary or appropriate to effectuate the foregoing and to provide the LFCM Employees with Health Care Reimbursement Accounts under
the LFCM Cafeteria Plan for the remainder of the 2005 calendar year on terms and conditions that are substantially similar to the terms and conditions applicable to the Health Care Reimbursement Accounts under the Lazard Group Cafeteria Plan as of
the date hereof. As soon as practicable following the date on which the Flex Account Statement (as defined below) becomes final and binding in accordance with this paragraph, (a) Lazard Group shall cause to be paid to LFCM cash in an amount equal to
the excess, if any, of (i) the aggregate accumulated contributions by the LFCM Employees to the 

  

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Health Care Reimbursement Accounts under the Lazard Group Cafeteria Plan made prior to the Close of the date hereof during the 2005 calendar year, over (ii)
the aggregate Health Care Reimbursement Account reimbursement payments made to the LFCM Employees prior to the Close of the date hereof for the 2005 calendar year from such accounts, and (b) LFCM shall cause to be paid to Lazard Group cash in an
amount equal to the excess, if any, of (i) the aggregate Health Care Reimbursement Account reimbursement payments made to the LFCM Employees prior to the date hereof for the 2005 calendar year from the Health Care Reimbursement Accounts under the
Lazard Group Cafeteria Plan over (ii) the aggregate accumulated contributions to such Health Care Reimbursement Accounts made by such LFCM Employees prior to the Close of the date hereof during the 2005 calendar year. From and after the Close of the
date hereof, LFCM shall cause the LFCM Cafeteria Plan to assume and be solely responsible for all claims incurred in respect of the Health Care Reimbursement Accounts during the 2005 calendar year by the LFCM Employees under the Lazard Group
Cafeteria Plan, whether incurred prior to, on or after the date hereof, that have not been paid in full as of the date hereof. Following the Close of the date hereof, LFCM shall indemnify and hold harmless the Lazard Group Companies and their
respective directors, officers, employees, agents and representatives with respect to all claims by LFCM Employees for reimbursement from the Health Care Reimbursement Accounts under the Lazard Group Cafeteria Plan. As soon as practicable following
the date hereof, the administrator of the Lazard Group Cafeteria Plan shall provide Lazard Group and Lazard Group shall provide LFCM with the amounts, if any, to be paid by Lazard Group to LFCM and/or by LFCM to Lazard Group, as the case may be,
pursuant to this paragraph, and supporting documentation of the calculation of such amounts (the “Flex Account Statement”). Unless either Party notifies the other in writing within 15 days following receipt of the Flex Account
Statement of any objection to the computation, the Flex Account Statement shall become final and binding on the Parties. Any objections or disputes shall be resolved between the Parties (and to the extent necessary an outside independent consultant
or accountant) based on the records of the outside administrator within 15 days following the objection, unless the Parties consent to a longer period. 
  
 4.4 Continued Coverage of Employees on Leave and Former LFCM Employees under the Lazard Group Health and Welfare Benefits. With respect to an
Employee on Leave or a Former LFCM Employee who, prior to the Close of the date hereof, has satisfied the eligibility requirements for long or short-term disability benefits, salary continuation benefits or extended medical leave benefits pursuant
to the terms of the applicable Lazard Group Health and Welfare Plan (or satisfies such requirements as a result of the disability event that gives rise to any such short-term disability benefits) or is entitled to continued participation in a Lazard
Group Health Plan, such benefits shall continue to be provided by Lazard Group under the applicable Lazard Group Health and Welfare Plans; provided that LFCM or the applicable LFCM Company shall be liable for and promptly reimburse Lazard
Group or such plan for any such Liability in an amount equal to the out-of-pocket cost to Lazard Group, which out-of-pocket cost shall be reduced by any insurance proceeds or contributions from the covered participant or otherwise that Lazard Group
actually receives in respect of such Liability. Upon an Employee on Leave’s commencement of active service with LFCM or an LFCM Company, the benefits being provided to such employee under any Lazard Group Health and Welfare Plan shall cease,
and such LFCM Employee shall be eligible to participate in the applicable LFCM Health and Welfare Plan. 
  
 4.5 Vacation. LFCM shall assume or retain, as applicable, and honor all unused vacation and other time-off earned or accrued by LFCM Employees
prior to the Close of the date 

  

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hereof, and the Lazard Group Companies shall have no further obligations or responsibilities in respect of such earned or accrued vacation or time-off.

  
 4.6 Workers’ Compensation Liabilities. All
workers’ compensation Liabilities relating to, arising out of, or resulting from any claim by a Lazard Group Employee, LFCM Employee, Former Lazard Group Employee or Former LFCM Employee that results from an accident occurring, or from an
occupational disease which becomes manifest, on or before the Close of the date hereof shall be retained by Lazard Group. All workers’ compensation Liabilities relating to, arising out of, or resulting from any claim by a LFCM Employee that
results from an accident occurring, or from an occupational disease which becomes manifest, after the Close of the date hereof shall be assumed and retained by LFCM. For purposes of this Agreement, a compensable injury shall be deemed to be
sustained upon the occurrence of the event giving rise to eligibility for workers’ compensation benefits or an occupational disease becomes manifest, as the case may be. Lazard Group, LFCM and the other LFCM Companies shall cooperate with
respect to any notification to appropriate governmental agencies of the First Distribution and the issuance of new, or the transfer of existing, workers’ compensation insurance policies and claims handling contracts. 
  
 4.7 Post-Retirement Welfare Benefits. From and after the Distribution
Time, Lazard Group shall retain all Liabilities relating to, arising out of, or resulting from retiree health and welfare coverage or claims incurred by or on behalf of Lazard Group Employees, Grandfathered LFCM Employees, Former Lazard Group
Employees and Former LFCM Employees and their respective eligible dependents under the Lazard Group Post-Retirement Welfare Benefits Plans, and shall retain sole sponsorship of all Lazard Group Post-Retirement Welfare Benefits Plans and any trust or
other funding arrangement established or maintained with respect to such plans, or any assets held as of the date hereof with respect to such plans; provided that LFCM or the applicable LFCM Company shall be liable for and promptly reimburse
Lazard Group or such plan for any such Liability in an amount equal to the out-of-pocket cost incurred by Lazard Group in respect of the provision of such benefits to a Grandfathered LFCM Employee or a Former LFCM Employee, which out-of-pocket cost
shall be reduced by any insurance proceeds or contributions from the covered participant or otherwise that Lazard Group actually receives in respect of such Liability. For purposes hereof, a “Grandfathered LFCM Employee” shall mean any
LFCM Employee or Employee on Leave who as of December 31, 2005 has attained age 62 and has at least ten years of credited service with the Lazard Group (including for this purpose any service to an LFCM Company during the Health Plan Transition
Period) for purposes of eligibility under the Lazard Group Retiree Medical Benefit Plans (which plans shall provide credit for age and service for periods of service to an LFCM Company during the Health Plan Transition Period. Effective no later
than the conclusion of the Health Plan Transition Period, LFCM shall have adopted a Health and Welfare Plan providing retiree hospital, medical and prescription benefits to LFCM Employees (other than any Grandfathered LFCM Employees) and their
eligible dependents for qualifying retirements occurring following the Close of the date hereof. Nothing in this Agreement shall or is intended to require the post-retirement welfare benefit plans of the LFCM Companies or the Lazard Group Companies
to contain any particular terms or to limit in any manner the discretion of the LFCM Companies or Lazard Group Companies, as applicable, to modify, amend or terminate any such plans subsequent to the date hereof. 
  

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 4.8 COBRA and HIPAA Compliance. Except with respect to the LFCM Health Care Reimbursement Account,
Lazard Group shall be responsible for administering compliance with the health care continuation requirements of COBRA, the certificate of creditable coverage requirements of HIPAA, and the corresponding provisions of the Lazard Group Health and
Welfare Plans with respect to LFCM Employees and their covered dependents who incur a COBRA qualifying event or loss of coverage under the Lazard Group Health and Welfare Plans during the Health Plan Transition Period. LFCM or another LFCM Company
shall be responsible for administering compliance with the health care continuation requirements of COBRA, the certificate of creditable coverage requirements of HIPAA, and the corresponding provisions of the LFCM Health and Welfare Plans with
respect to LFCM Employees and their covered dependents who incur a COBRA qualifying event or loss of coverage under the LFCM Health and Welfare Plans at any time after the Close of the date hereof, it being understood that the Lazard Group Companies
shall be responsible for administering such compliance with respect to the coverage and participation of LFCM Employees under the Lazard Group Health and Welfare Plans during the Health Plan Transition Period. The Parties agree that the consummation
of the Separation, Reorganization and related transactions contemplated by the Separation Agreement and this Agreement shall not constitute a COBRA qualifying event for any purpose of COBRA. 
  
 ARTICLE V 
 COMPENSATION AND EMPLOYMENT ARRANGEMENTS 
  
 5.1 Payroll. Effective as of the Distribution Time, LFCM shall assume or retain, as applicable, and be responsible for the payment of (or reimburse
Lazard Group for), all wages, salaries and employer matching contributions under the Lazard Group Savings Plan to or in respect of the LFCM Employees for their service to LFCM or an LFCM Company following the Close of the date hereof and for all
earned and unpaid wages, salaries and employer matching contributions under the Lazard Group Savings Plan for the service of employees and partners of the LFCM Businesses prior to the Close of the date hereof. 
  
 5.2 Annual Incentive Awards. LFCM shall be responsible for determining
all 2005 bonus awards to LFCM Employees. LFCM shall assume or retain, as applicable, all Liabilities with respect to any such bonus awards payable to LFCM Employees for 2005 and thereafter. 
  
 5.3 Employment and Other Individual Agreements. No later than
immediately prior to the Distribution Time, LFCM or another LFCM Company shall assume and be responsible for all Liabilities and obligations under any employment agreements or other individual agreements between a Lazard Group Company and an LFCM
Employee or Former LFCM Employee, including without limitation those listed on Exhibit C attached hereto, and the Lazard Group Companies shall have no further obligations under such agreements; provided that, to the extent it is not
administratively practicable to transfer the responsibility for the payment or provision of any such Liability or obligation to an LFCM Company, the applicable Lazard Group Company shall continue to satisfy such Liability or obligation, and LFCM
shall promptly reimburse Lazard Group for such Liability or obligation in an amount equal to the out-of-pocket cost to Lazard Group. 
  

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 ARTICLE VI 
 GENERAL AND ADMINISTRATIVE 
  
 6.1 Sharing of Participant Information. Subject to applicable law, Lazard Group and LFCM shall share, and Lazard Group shall cause each other Lazard Group Company to share, and LFCM shall cause each other LFCM Company to share with
each other and their respective agents and vendors (without obtaining releases) all participant information necessary for the efficient and accurate administration of each of the LFCM Benefit Plans and the Lazard Group Benefit Plans. Lazard Group
and LFCM and their respective authorized agents shall, subject to applicable laws, be given reasonable and timely access to, and may make copies of, all information relating to the subjects of this Agreement in the custody of the other Party, to the
extent necessary for such administration. Until the Close of the date hereof, all participant information shall be provided in the manner and medium applicable to participating companies in Lazard Group Benefit Plans generally, and thereafter all
participant information shall be provided in a manner and medium as may be mutually agreed to by Lazard Group and LFCM and that complies with relevant data protection legislation. 
  
 6.2 Reasonable Efforts/Cooperation. Each of the Parties will use its commercially reasonable efforts to promptly
take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations to consummate the transactions contemplated by this Agreement. 
  
 6.3 No Third-Party Beneficiaries. This Agreement is solely for the
benefit of the Parties and is not intended to confer upon any other persons any rights or remedies hereunder. Except as expressly provided in this Agreement, nothing in this Agreement shall preclude Lazard Group or any other Lazard Group Company, at
any time after the date hereof, from amending, merging, modifying, terminating, eliminating, reducing, or otherwise altering in any respect any Lazard Group Benefit Plan, any benefit under any Benefit Plan or any trust, insurance policy or funding
vehicle related to any Lazard Group Benefit Plan. Except as expressly provided in this Agreement, nothing in this Agreement shall preclude LFCM or any other LFCM Company, at any time after the date hereof, from amending, merging, modifying,
terminating, eliminating, reducing, or otherwise altering in any respect any LFCM Benefit Plan, any benefit under any Benefit Plan or any trust, insurance policy or funding vehicle related to any LFCM Benefit Plan. 
  
 6.4 Audit Rights With Respect to Information Provided. 
  
 (a) Audit-Rights. Each of Lazard Group and LFCM, and
their duly authorized representatives, shall have the right to conduct reasonable audits with respect to all information required to be provided to it by the other Party under this Agreement. The Party conducting the audit (the “Auditing
Party”) may adopt reasonable procedures and guidelines for conducting audits and the selection of audit representatives under this Section 6.4. The Auditing Party shall have the right to make copies of any records at its expense, subject to
any restrictions imposed by applicable laws and to any confidentiality provisions set forth in the Separation Agreement, which are incorporated by reference herein. The Party being audited shall provide the Auditing 

  

 -15- 

 
Party’s representatives with reasonable access during normal business hours to its operations, computer systems and paper and electronic files, and
provide workspace to its representatives. After any audit is completed, the Party being audited shall have the right to review a draft of the audit findings and to comment on those findings in writing within ten business days after receiving such
draft. 
  
 (b) Scope of Audit Rights. The
Auditing Party’s audit rights under this Section 6.4 shall include the right to audit, or participate in an audit facilitated by the Party being audited, of any Subsidiaries and Affiliates of the Party being audited and to require the other
Party to request any benefit providers and third Parties with whom the Party being audited has a relationship, or agents of such Party, to agree to such an audit to the extent any such persons are affected by or addressed in this Agreement
(collectively, the “Non-Parties”). The Party being audited shall, upon written request from the Auditing Party, provide an individual (at the Auditing Party’s expense) to supervise any audit of a Non-Party. The Auditing Party
shall be responsible for supplying, at the Auditing Party’s expense, additional personnel sufficient to complete the audit in a reasonably timely manner. The responsibility of the Party being audited shall be limited to providing, at the
Auditing Party’s expense, a single individual at each audited site for purposes of facilitating the audit. 
  
 6.5 Payroll Taxes and Reporting of Compensation. Lazard Group and LFCM shall, and shall cause the other Lazard Group Companies and the other LFCM
Companies to, respectively, take such action as may be reasonably necessary or appropriate in order to minimize Liabilities related to payroll taxes after the date hereof. Pursuant to the “Alternate Procedure” (provided in Section 5 of
Revenue Procedure 2004-53), with respect to filing and furnishing IRS Forms W-2, W-3, W-4, W-5 and 941 for 2005, with respect to LFCM Employees compensated through the United States payroll, (i) the Lazard Group Companies shall report on a
“predecessor-successor” basis (as set forth therein), (ii) the Lazard Group Companies shall be relieved from furnishing Forms W-2 and (iii) the LFCM Companies shall assume the obligations of the Lazard Group Companies to furnish such Forms
W-2. Lazard Group and LFCM shall, and shall cause the other Lazard Group Companies and the other LFCM Companies to, respectively, each bear its responsibility for payroll tax obligations and for the proper reporting to the appropriate governmental
authorities of compensation earned by their respective employees after the Close of the date hereof. 
  
 6.6 Tax Deductions. The Lazard Group Companies shall receive the benefit of all tax deductions in respect of compensation and benefits paid or
provided to LFCM Employees prior to the Distribution Time and in respect of all compensation and benefits provided to Lazard Group Employees, Former Lazard Group Employees and Former LFCM Employees, and the LFCM Companies shall be entitled to the
benefit of all tax deductions in respect of compensation and benefits paid or provided to LFCM Employees from and after the Distribution Time; provided, however, that, notwithstanding the foregoing, to the extent LFCM is required to
reimburse Lazard Group for the payment or provision of compensation or benefits to an LFCM Employee, Employee on Leave or Former LFCM Employee, the LFCM Companies shall receive the benefit of any such tax deduction to the extent permitted under
applicable law; and, provided further that, to the extent the LFCM Companies would not be permitted to take any such deduction under applicable law, and a tax deduction is taken by the Lazard Group in respect thereof, LFCM’s
reimbursement obligation under this Agreement shall be appropriately adjusted to take into ac- 

  

 -16- 

 
count the tax benefit actually received by Lazard Group or its partners taking into account any tax liability imposed on the Lazard Group or its partners in
respect of the reimbursement from the LFCM Companies. 
  
 6.7
Consent of Third Parties. If any provision of this Agreement is dependent on the consent of any third Party (such as a vendor) and such consent is withheld, the Parties shall use their reasonable best efforts to implement the applicable
provisions of this Agreement to the full extent practicable. If any provision of this Agreement cannot be implemented due to the failure of such third Party to consent, the Parties shall negotiate in good faith to implement the provision in a
mutually satisfactory manner. The phrase “reasonable best efforts” as used herein shall not be construed to require any Party to incur any non-routine or unreasonable expense or Liability or to waive any right. 
  
 ARTICLE VII 
 MISCELLANEOUS 
  
 7.1 Relationship of Parties. Nothing in this Agreement shall be deemed or construed by the Parties or any third party as creating the relationship of principal and agent, partnership or joint venture between
the Parties, it being understood and agreed that no provision contained herein, and no act of the Parties, shall be deemed to create any relationship between the Parties other than the relationship set forth herein. 
  
 7.2 Affiliates. Each of Lazard Group and LFCM shall cause to be
performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth in this Agreement to be performed by another Lazard Group Company or a LFCM Company, respectively. 
  
 7.3 Incorporation of Separation Agreement Provisions. The following
provisions of the Separation Agreement are hereby incorporated herein by reference, and unless otherwise expressly specified herein, such provisions shall apply as if fully set forth herein (references in this Section 7.4 to an “Article”
or “Section” shall mean Articles or Sections of the Separation Agreement, and references in the material incorporated herein by reference shall be references to the Separation Agreement): Article IV (relating to Survival and
Indemnification, provided that the indemnification provisions set forth in Sections 3.1(a)(iii) and 4.2(c) of this Agreement shall govern with respect to the Indemnifiable Losses described therein); Article V (relating to Certain Additional
Covenants); Article VI (relating to Access to Information); Article VII (relating to No Representations or Warranties); Article X (relating to Termination); Article XI (relating to Miscellaneous). 
  

 -17- 

 IN WITNESS WHEREOF, the Parties have caused this Employee Benefits Agreement to be duly executed as of
the day and year first above written. 
  

			
	 LAZARD LTD

		
	 By:
	 	 /s/ Scott D. Hoffman

	 	 	 Name: Scott D. Hoffman

	 	 	 Title:   Director, Vice President and Secretary

	
	 LAZARD LLC

		
	 By:
	 	 /s/ Scott D. Hoffman

	 	 	 Name: Scott D. Hoffman

	 	 	 Title:   Authorized Person

	
	 LAZ-MD HOLDINGS LLC

		
	 By:
	 	 /s/ Scott D. Hoffman

	 	 	 Name: Scott D. Hoffman

	 	 	 Title:   Member

	
	 LFCM HOLDINGS LLC

		
	 By:
	 	 /s/ Scott D. Hoffman

	 	 	 Name: Scott D. Hoffman

	 	 	 Title:   Authorized Person

  

 -18-

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