Document:

ex10-1.htm

     

    
      Exhibit 10.1

       

       

      AMENDED
AND RESTATED

      AGREEMENT
RELATING TO RETENTION AND

      NONCOMPETITION
AND OTHER COVENANTS

       

      AMENDED AND RESTATED
AGREEMENT (this “Agreement”),
dated as of May 7, 2008 (the “Effective
Date”), by and among Lazard Ltd, a company incorporated under the laws of
Bermuda (“PubliCo”),
Lazard Group LLC, a Delaware limited liability company, and successor to Lazard
LLC (“Lazard”),
on its behalf and on behalf of its subsidiaries and affiliates (collectively
with Lazard, PubliCo, and its and their predecessors and successors, the “Firm”),  and
Steven J. Golub (the “Executive”).

       

      WHEREAS, the Firm and the
Executive wish to amend the Agreement Relating
to Retention and Noncompetition and Other Covenants, dated as of May
4, 2005
(the “Original
Agreement Date”), by
and among Lazard and the
Executive (the “Original
Agreement”) to (i) make PubliCo, a party to this Agreement, and (ii)
modify the terms of the Original Agreement to, among other things, extend
certain of the obligations under Section 3 thereof and to make such other
changes as are necessary in order for the terms thereof to comply with Section
409A of the Internal Revenue Code of 1986, as amended (the “Code”);
and

       

      WHEREAS, as of the
Original Agreement Date, the Executive was a “Managing Director” and a “Class A
Member” of Lazard (each as defined in the Third Amended and Restated Operating
Agreement of Lazard, dated as of January 1, 2002, as amended (as it may be
amended from time to time, the “LLC
Agreement”)); and

       

      WHEREAS, pursuant to the
LLC Agreement and those certain Goodwill Vesting Agreement and Acknowledgements
entered into between Lazard and the Executive (each a “Goodwill
Agreement,” and, together with the LLC Agreement, the “Current
Agreements”), as a Class A Member of Lazard, the Executive is subject to
certain restrictions relating to competition and solicitation;
and

       

      WHEREAS, in connection
with the Executive’s participation in the reorganization of Lazard (the “Reorganization”)
that occurred substantially on the terms and conditions described in Amendment
No. 2 to the draft Registration Statement on Form S-1 (the “S-1”)
dated March 21, 2005, as filed with the Securities and Exchange Commission,
relating to the initial public offering (the “IPO”
and together with the Reorganization and the HoldCo Formation (as defined
below), as each was modified, adjusted or implemented after the Original
Agreement Date, the “Transactions”)
of shares of Class A common stock of PubliCo, the Executive agreed to enter into
the Original Agreement with Lazard to set forth the Executive’s (1)
understanding of the terms of the Transactions applicable to the Executive as a
Class A Member (as defined in the LLC Agreement) and as a member of a newly
formed Delaware limited liability company (“HoldCo”)
to be formed in connection with the Reorganization and of the fact that the
terms were in draft form and were subject to change or alteration after the
Original Agreement Date (other than as expressly provided in the Original
Agreement), and approval of the Transactions (including as such terms may be
changed or altered), (2) continuing employment commitment in contemplation of
the IPO and following the IPO, as well as the terms and conditions of the
Executive’s continued employment with the Firm prior to the IPO (as provided in
Section 3(b)), and (3) obligations in respect of keeping information concerning
the Firm confidential, not engaging in competitive activities, not soliciting
the Firm’s clients, not hiring the Firm’s employees, not disparaging the Firm or
its directors, members or employees, and cooperating with the Firm in
maintaining certain relationships, while employed by the Firm and following the
termination of the Executive’s employment.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

      NOW, THEREFORE, in
consideration of the premises contained herein and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged,
effective as of the Effective Date, the Executive, PubliCo and Lazard hereby
agree to amend and restate the Original Agreement to reflect the addition of
PubliCo as a party and to modify the terms of the Original Agreement to, among
other things, make the changes to Section 3 of the Original Agreement as
described in the first recital above.

       

      1.           Term.  Subject
to Sections 3(d) and (e), Section 10(c) and Section 16(b), the “Term”
of this Agreement shall commence as of the Effective Date and shall continue
until March 31, 2011.

       

      2.           The
Transactions.

       

      (a)           Participation
in the Reorganization.  The Executive hereby acknowledges that
he has reviewed and understands the terms of the proposed Transactions and that
such terms, including the structure of the Transactions, may be modified or
otherwise altered by the Board of Directors of Lazard, an authorized committee
thereof or the “Head of Lazard and Chairman of the Executive Committee” (as
defined in the LLC Agreement) as such person(s) may determine in furtherance of
the purposes underlying the Transactions.  The Executive hereby
covenants to execute and deliver such documents, consents and agreements as
shall be necessary to effectuate each of the Transactions (as described in the
S-1 or as such Transactions may be modified or altered in accordance with the
foregoing sentence), including, without limitation, any amendments to the
Current Agreements or this Agreement (solely to the extent such amendments are
necessary to effectuate any such modifications and alterations to the
Transactions and are not inconsistent with the intent and purpose of this
Agreement and other than as set forth in the last sentence of this Section
2(a)), a customary accredited investor representation letter, a HoldCo
membership agreement and the stockholders’ agreement referred to in Section
2(f).  Notwithstanding anything contained herein to the contrary, in
no event shall the following provisions be modified in a manner that materially
and adversely affects the following rights of the Executive as and to the extent
set forth in such provisions of this Agreement:  (i) Section 2(c)
solely with respect to the vesting of the Class A-2 Interests and the
corresponding Holdco Interests, (ii) Section 2(e) solely with respect to the
timing of payment of the memo and other capital in Lazard, (iii) Section 2(g)(i)
solely with respect to the last sentence thereof relating to the restrictive
covenants applicable to the Exchangeable Interests, (iv) Section 2(g)(ii) solely
with respect to the timing of exchangeability of the Exchangeable Interests, (v)
Section 2(g)(iv) solely with respect to the definition of Cause, and (vi)
Schedule I.

       

       

       

      
        
          
          

        

        
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      (b)           Formation
of HoldCo.  Effective upon the Reorganization and consummation
of the mandatory sale of all “Interests” (as defined in the LLC Agreement)
pursuant to Section 6.02(b) of the LLC Agreement (as the provisions of such
Section 6.02(b) may be waived or modified) or otherwise (the “HoldCo
Formation”), and provided that as of the effective time of the HoldCo
Formation the Executive continues to be employed by the Firm, the Executive
shall receive, in exchange for the Executive’s Class A Interests (as defined in
the LLC Agreement) outstanding immediately prior to the HoldCo Formation, the
percentage of membership interests in HoldCo set forth on Schedule
I attached hereto (such percentage to be increased pro rata to reflect
the redemption of Class B-1 Interests pursuant to the Reorganization) that have
substantially the same rights, obligations and terms (including with respect to
vesting) with respect to HoldCo pursuant to the HoldCo limited liability company
operating agreement (the “HoldCo
LLC Agreement”) and applicable law as those of the exchanged Class A
Interests, except as provided herein, including in Sections 2(a) and 2(d), or
except to the extent that any other changes, taken as a whole with any benefits
provided, are not materially adverse to the Executive (such membership
interests, the “HoldCo
Interests”).  The Holdco LLC Agreement will include those terms
set forth on Schedule
II attached hereto, subject to the limitations set forth
therein.

       

      (c)           Vesting
of Class A-2 Interests (or the Holdco Interests Corresponding to Such Class A-2
Interests).  Subject to the consummation of the HoldCo
Formation and subject to and effective upon the closing of the IPO (the “IPO
Date”), and provided that as of the IPO Date the Executive continues to
be employed by the Firm (or has had his employment terminated by the Firm
without “Cause” (as defined below) or on account of “disability” within the
meaning of the long-term disability plan of the Firm applicable to the Executive
(“Disability”)
or death), following the date hereof and prior to the IPO Date, the Class A-2
Interests (as defined in the LLC Agreement) (the “Class
A-2 Interests”) held by the Executive as of the date hereof (or upon
consummation of the Reorganization, the HoldCo Interests received by the
Executive in the Reorganization that correspond to the Executive’s Class A-2
Interests as of the date hereof) that are not vested as of the IPO Date, shall
become fully vested.  Such vesting shall occur (i) in the case of a
termination of employment prior to the IPO Date on the terms described above in
this Section 2(c), on the date of such termination (provided that in the event
that the IPO Date shall not occur as contemplated by this Agreement, such
vesting shall be deemed not to have occurred, unless it is otherwise provided by
the Current Agreements) or (ii) in any other case, on the IPO
Date.

       

      (d)           Profits
Interest Allocation.  In connection with the Reorganization,
subject to the consummation of the HoldCo Formation and subject to and effective
upon the closing of the IPO, and provided that as of the IPO Date the Executive
continues to be employed by HoldCo or one of its affiliates (including Lazard),
the Executive shall become a member participating in the profits of HoldCo with
a profit percentage in HoldCo of no less than the amount specified on Schedule
I attached hereto (the “Profits
Interest”) (such percentage to be increased pro rata to reflect the
redemption of Class B-1 Interests pursuant to the Reorganization) having the
rights, obligations and terms set forth in the HoldCo LLC Agreement so long as
the Executive shall remain employed by the Firm.  Subject to the
provisions of the HoldCo LLC Agreement and the determination of the Board of
Directors of HoldCo (the “HoldCo
Board”), HoldCo shall make (i) distributions in respect of income taxes
arising from such Profit Interests and (ii) from and after the third anniversary
of the IPO Date distributions that are intended to be equivalent to the
aggregate amount of dividends that the Executive (and, if applicable, the
Executive’s “Entities” (as defined below)) would have received had the Executive
(and, if applicable, the Executive’s Entities) exchanged such person’s
“Exchangeable Interests” (as defined below) for exchangeable membership
interests in Lazard that were then immediately exchanged for “PubliCo Shares”
(as defined below) effective as of the third anniversary of the IPO Date (with
such amount of distributions, and such profit percentage, to be adjusted from
time to time to reflect the actual exchange, in whole or in part, of such
Exchangeable Interests).

       

       

       

      
        
          
          

        

        
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      (e)           Treatment
of Memo Capital and Other Capital.  Upon the HoldCo Formation,
HoldCo shall assume the obligations of Lazard for memo capital and other capital
in Lazard, and the Executive hereby acknowledges such assumption and releases
Lazard in full from such obligations.  HoldCo shall distribute to the
Executive amounts in respect of the Executive’s assumed memo capital in respect
of Class A-1 capital and former Class A-1 capital, if any, in equal installments
on the first, second, third and fourth anniversaries of the IPO Date, plus any
interest accrued through each distribution date.  The Executive
further hereby agrees that all of his rights and title to and in any and all
capital of HoldCo allocated with respect to any Exchangeable Interests which are
exchanged for exchangeable membership interests in Lazard that are in turn
exchanged for PubliCo Shares, and the related profits interests (other than, for
the avoidance of doubt, the capital to be repaid in accordance with the
immediately foregoing sentence), shall be forfeited without payment therefor,
effective immediately upon the exchange of such Exchangeable
Interests.  This Section 2(e) supercedes and replaces any other
agreements or understandings with respect to all capital of Lazard and HoldCo,
other than in respect of earnings on such capital, which shall be continued in
accordance with past practice.

       

      (f)           Stockholders’
Agreement.  The Executive hereby agrees that all Exchangeable
Interests and PubliCo Shares (as defined in Section 2(g)(i)) held by the
Executive and the Executive’s Entities (including PubliCo Shares obtained
pursuant to the exchange of Exchangeable Interests for exchangeable membership
interests in Lazard which are then exchanged for PubliCo Shares) shall be
subject to a stockholders’ agreement which shall provide, among other things,
that the Executive (on behalf of himself and any “Entity” (as defined in Section
2(g)(ii)) to whom he has transferred any Class A-2 Interests (as defined in the
LLC Agreement) or transfers any such Exchangeable Interests or PubliCo Shares)
shall delegate to such person(s) or entity as is described in such agreement the
right to vote PubliCo Shares held by the Executive or by any such Entity to whom
he made such a transfer.  The Executive hereby agrees to execute and
deliver such stockholders’ agreement (or, in the case of any Entity, to cause
the execution and delivery thereof) in accordance with the HoldCo LLC
Agreement.  The stockholders’ agreement will include those terms set
forth on Schedule
III attached hereto, subject to the limitations set forth
therein.

       

      (g)           Exchangeable
Interests.

       

      (i)        A
portion of the HoldCo Interests received by the Executive pursuant to Section
2(b) equal in percentage to the Executive’s Lazard Class A-2 Interests as of the
IPO Date as adjusted in the same manner as all other Lazard Class A-2 Interests
in connection with the HoldCo Formation (such portion, the “Exchangeable
Interests”) shall be exchangeable, on the terms set forth in this Section
2(g) and the HoldCo LLC Agreement, for membership interests in Lazard that are
in turn exchangeable for shares of Class A common stock of PubliCo (“PubliCo
Shares”), such exchange to be accomplished in each case by HoldCo
distributing to the Executive (in exchange for the appropriate portion of the
Executive’s Exchangeable Interests) the corresponding portion of HoldCo’s
applicable ownership interest in Lazard and causing PubliCo to issue the PubliCo
Shares to the Executive in exchange for such distributed ownership interest in
Lazard (or such other structure as may be reflected in the Holdco LLC Agreement
and documents ancillary thereto which provide for a similar exchange, directly
or indirectly, of Exchangeable Interests for PubliCo Shares).  The
documents reflecting the Exchangeable Interests shall contain the restrictive
covenants set forth in the HoldCo LLC Agreement addressing the subject matter of
the Covenants, which covenants shall be consistent with, and no more restrictive
on the Executive than those contained in this Agreement.  The
Executive’s Exchangeable Interests shall not be subject to reduction for any
reason.

       

       

       

      
        
          
          

        

        
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      (ii)      Subject
to the provisions of the HoldCo LLC Agreement, the Exchangeable Interests may be
exchanged for exchangeable membership interests in Lazard that are in turn
exchangeable for PubliCo Shares as described above, at the Executive’s election,
on and after the eighth anniversary of the IPO Date; provided,
however,
that (A) if the Executive remains employed by the Firm through the third
anniversary of the IPO Date, the Executive’s Exchangeable Interests (and any
Exchangeable Interests held by any trust or any entity that is wholly-owned by
the Executive or of which the entire ownership or beneficial interests are held
by any combination of the Executive and his spouse, parents, and any of their
descendants by lineage or adoption (an “Entity”)), may
be exchanged for exchangeable membership interests in Lazard that are in turn
exchangeable for PubliCo Shares, in whole or in part, at the Executive’s (or, if
applicable, such Entity’s) election, in three equal installments on and after
each of the third, fourth and fifth anniversaries of the IPO Date, provided that
each such installment may be exchanged only if the Executive has complied with
the Covenants (as defined in Section 10), and (B) if the Executive remains
employed by the Firm through the second anniversary of the IPO Date (but not
through the third anniversary of the IPO Date), the Executive’s Exchangeable
Interests may be exchanged, in whole or in part, at the Executive’s (or, if
applicable, such Entity’s) election, in three equal installments on and after
each of the fourth, fifth and sixth anniversaries of the IPO Date, provided that
each such installment may be exchanged only if the Executive has complied with
the Covenants. Notwithstanding the above, (w) if the Executive’s employment
is terminated by the Firm without “Cause” or by the Executive for Good Reason
(each as defined below) or by reason of the Executive’s Disability prior to the
third anniversary of the IPO Date, the Executive’s Exchangeable Interests may be
exchanged as if the Executive had remained employed on the third anniversary of
the IPO Date and complied with the requirements of clause (A) above (i.e., the
Executive may exchange his Exchangeable Interests on the third, fourth and fifth
anniversaries of the IPO Date as described in clause (A) above, provided that
each such installment may be exchanged only if the Executive has complied with
the Covenants); (x) if the Executive’s employment is terminated by reason
of the Executive’s death (1) prior to or on the second anniversary of the
IPO Date, the Executive’s Exchangeable Interests shall, at the election of the
Firm, either (A) become exchangeable in full no later than the first
anniversary of such death or (B) be purchased by HoldCo at the trading
price of PubliCo Shares on the date of such repurchase no later than the first
anniversary of such death or (2) subsequent to the second anniversary of
the IPO Date but prior to the fourth anniversary of the IPO Date, the
Executive’s Exchangeable Interests may, to the extent not previously exchanged,
be exchangeable in full on the later of (A) the third anniversary of the
IPO Date and (B) the anniversary of the IPO Date next following such death;
(y) if following the IPO Date and prior to the third anniversary of the IPO
Date, the Executive’s employment terminates due to his “Retirement”
(defined as the voluntary resignation by the Executive on or after the date he
attains age 65 or attains age 55 and has at least ten years of continuous
service as a managing director of Lazard or one of its affiliates) and
thereafter the Executive dies, the Executive’s Exchangeable Interests shall be
treated as set forth in clause (x) of this Section, provided that the Covenants
have been complied with since his retirement without regard to the time limits
set forth therein; and (z) in the event of a “Change of Control” (as
defined in the HoldCo LLC Agreement), the Executive’s Exchangeable Interests
shall be exchanged prior to the occurrence of such event at a time and in a
fashion designed to allow the Executive to participate in the Change of Control
transaction on a basis no less favorable (prior to any applicable taxes) than
that applicable to holders of PubliCo Shares.

       

       

       

      
        
          
          

        

        
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      (iii)     Prior
to the applicable exchange date and as a condition to the exchange of the
Exchangeable Interests for PubliCo Shares, the Executive shall have entered into
a stockholders’ agreement, as described in Section 2(f), and otherwise complied
in all material respects with the terms of the HoldCo LLC Agreement applicable
to such exchange.  Each of HoldCo and PubliCo shall have the right to
require the exchange of all or part of the Executive’s Exchangeable Interests
for PubliCo Shares during the period beginning on the ninth anniversary of the
IPO Date and ending 30 days after such anniversary.

       

      (iv)     For
purposes of this Agreement, “Cause”
shall mean:  (A) conviction of the Executive of, or a guilty or nolo
contendere plea (or the equivalent in a non-United States jurisdiction)
by the Executive to, a felony (or the equivalent in a non-United States
jurisdiction), or of any other crime that legally prohibits the Executive from
working for the Firm; (B) breach by the Executive of a regulatory rule that
materially adversely affects the Executive’s ability to perform his duties to
the Firm; (C) willful and deliberate failure on the part of the Executive (i) to
perform his employment duties in any material respect or (ii) to follow specific
reasonable directions received from the Firm, in each case following written
notice to the Executive of such failure and, if such failure is curable, the
Executive’s failing to cure such failure within a reasonable time (but in no
event less than 30 days); or (D) a breach of the Covenants that is (individually
or combined with other such breaches) demonstrably and materially injurious to
Lazard or any of its affiliates.  Notwithstanding the foregoing, with
respect to the events described in clauses (B) and (C)(i) hereof, the
Executive’s acts or failure to act shall not constitute Cause to the extent
taken (or not taken) based upon the direct instructions of the Head of Lazard
(or after the IPO Date, the Chief Executive Officer of PubliCo (the “CEO”)
or the Board of Directors of PubliCo (the “PubliCo
Board”)) or a more senior executive officer of
Lazard.

       

       

       

      
        
          
          

        

        
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      (h)           Registration;
Dilution.  The definitive agreements relating to the
Transactions will contain (i) provisions obligating PubliCo to file a
registration statement with the U.S. Securities and Exchange Commission in order
to register the reoffer and resale of the PubliCo Shares on and following the
exchange of the Exchangeable Interests, subject to customary blackout provisions
and other customary restrictions, and obligating PubliCo to use reasonable
efforts to list such PubliCo Shares on the New York Stock Exchange, and (ii)
customary antidilution and corporate event adjustment protections (consistent
with adjustments applicable to PubliCo Shares) with respect to the Exchangeable
Interests and the Exchangeable Interests’ exchange rights into PubliCo
Shares.

       

      (i)           Cooperation
With Respect to Taxes.  Lazard shall use its reasonable efforts
to structure the Transactions in a manner that does not result in any material
tax to the Executive (that the Executive would not have incurred in the absence
of the Transactions) upon the exchange of the Class A-2 Interests into
Exchangeable Interests or other exchange of Class A-2 Interests into HoldCo
Interests, it being understood that this shall not be a commitment to maintain
the current tax treatment or benefits applicable to the
Executive.

       

      (j)           HoldCo
Governance Structure.  Lazard shall use its reasonable efforts
to structure the HoldCo governance terms with a view to permitting it to perform
its obligations under this Agreement, including, without limitation, with
respect to making the distributions and payments provided for in Sections 2(d)
and (e) and permitting and effecting the exchange of the Exchangeable Interests
for PubliCo Shares in the manner and at the times contemplated by Section
2(g).

       

      3.           Continued
Employment.

       

      (a)           Employment.  The
Executive hereby agrees to continue in the employ of the Firm, subject to the
terms and conditions of this Agreement.

       

      (b)           Duties
and Responsibilities; Code of Conduct.  During the Term, the
Executive shall serve as a Managing Director of Lazard, Vice Chairman of PubliCo
and the Chairman of the Financial Advisory Group of Lazard Group,
LLC.  In such positions, the Executive shall have such duties and
responsibilities as the CEO may from time to time determine and as are
commensurate with such positions.  During the Term, other than in
respect of charitable, educational and similar activities which do not
materially affect the Executive’s duties to the Firm (or in respect of
directorships, trusteeships, or similar posts, in each case, that were approved
by the head of the Lazard house at which the Executive serves as a Managing
Director prior to the IPO Date, or the CEO or PubliCo Board as per the policy of
PubliCo from and after the IPO Date), the Executive shall devote his entire
working time, labor, skill and energies to the business and affairs of the
Firm.  During the Term, the Executive shall comply with the Firm’s
professional code of conduct as in effect from time to time and shall execute on
an annual basis and at such additional times as the Firm may reasonably request
such code as set forth in the Firm’s “Professional Conduct Manual” or other
applicable manual or handbook of the Firm as in effect from time to time and
applicable to other managing directors in the same geographic location as the
Executive.

       

       

       

      
        
          
          

        

        
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      (c)           Compensation.

       

      (i)        Base
Salary.  During the Term, subject to the Executive’s continued
employment hereunder, the Executive shall be paid a base salary at an annual
rate of $900,000 (the “Base
Salary”), payable in accordance with the Firm’s normal payroll
practices.  The CEO, the PubliCo Board or a committee of the PubliCo
Board (the “Committee”)
may from time to time review and increase the Executive’s Base Salary in his, or
its sole discretion, as applicable.  For purposes hereof, the term
Base Salary shall refer to Base Salary as in effect from time to time, including
any increases.

       

      (ii)       Annual
Bonus.  With respect to each fiscal year of Lazard ending
during the Term, the Executive shall be entitled to receive, so long as the
Executive remains employed by the Firm through the end of the applicable fiscal
year of Lazard, an annual bonus to be determined under the terms of the
applicable annual bonus plan of Lazard on the same basis as annual bonus is
determined for other executive officers of PubliCo, with such bonus to be paid
in the same ratio of cash to equity awards as is applicable to executives of the
Firm receiving bonuses at a level comparable to the bonus of the Executive (each
year’s award paid pursuant to this Section 3(c)(ii) shall hereinafter be
referred to as the “Bonus”).  Consistent
with the policies and programs generally applicable to the senior most
executives of the Firm, any portion of the Bonus that is satisfied in the form
of equity compensation may be subject to vesting conditions and/or restrictive
covenants (it being understood that the sole remedy for violation of any such
restrictive covenants shall be forfeiture of such equity compensation and/or
recapture of previous gains in respect of such equity compensation and that
notwithstanding Section 11(b), money damages shall not be an available
remedy).

       

      (iii)      Long-term
Incentive Compensation.  With respect to each fiscal year of
Lazard ending during the Term, subject to the Executive’s continued employment
hereunder, the Executive shall be eligible to participate in any equity
incentive plan for executives of the Firm as may be in effect from time to time,
in accordance with the terms of any such plan.

       

      (iv)       Employee
Benefit Plans.  During the Term, subject to the Executive’s
continued employment hereunder, the Executive shall be eligible to participate
in the employee retirement and welfare benefit plans and programs of the type
made available to the senior most executives of the Firm generally, in
accordance with their terms and as such plans and programs may be in effect from
time to time, including, without limitation, savings, profit-sharing and other
retirement plans or programs, 401(k), medical, dental, flexible spending
account, hospitalization, short-term and long-term disability and life insurance
plans.

       

      (d)           Termination
of Employment.

       

      (i)        Death
or Disability.  The Executive’s employment shall terminate
automatically upon the Executive’s death during the Term.  If the Firm
determines in good faith that the Disability of the Executive has occurred
during the Term, it may give the Executive written notice in accordance with
Section 16(c) of this Agreement of its intention to terminate the Executive’s
employment.  In such event, the Executive’s employment with the Firm
shall terminate effective on the 30th day after receipt of such notice by the
Executive (the “Disability
Effective Date”), provided
that, within the 30 days after such receipt, the Executive shall not have
returned to full-time performance of the Executive’s duties.

       

       

       

      
        
          
          

        

        
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      (ii)       Cause.  The
Firm may terminate the Executive’s employment during the Term either with or
without Cause.

       

      (iii)      Good
Reason.  The Executive’s employment may be terminated during
the portion of the Term commencing on the Effective Date by the Executive with
or without Good Reason.  For purposes of this Agreement, “Good
Reason” shall mean in the absence of a written consent of the
Executive:  (A) the assignment to the Executive of any duties
inconsistent in any material respect with the Executive’s position (including
status, offices, titles and reporting requirements), authority, duties or
responsibilities as in effect as of the Effective Date, or any other action by
the Firm which results in a material diminution in such position, authority,
duties or responsibilities from the level in effect as of the Effective Date,
(B) a material breach by the Firm of the terms of this Agreement, including,
without limitation, any material failure by the Firm to comply with any of the
provisions of Section 3(c) of this Agreement, or (C) any requirement that the
Executive’s principal place of employment be relocated to a location that
increases the Executive’s commute from his primary residence by more than 30
miles.  In the event of a termination for Good Reason, the notice
requirements of Sections 3(d)(iv) and (v) shall not
apply.  Notwithstanding the foregoing, a termination for Good Reason
shall not have occurred unless (I) the Executive gives written notice to Lazard
of termination of employment within ninety (90) days after the Executive first
becomes aware of the occurrence of the circumstances constituting Good Reason,
specifying in reasonable detail the circumstances constituting Good Reason, and
Lazard has failed within thirty (30) days after receipt of such notice to cure
the circumstances constituting Good Reason, and (II) the Executive’s “separation
from service” (within the meaning of Section 409A of the Code) occurs no later
than two years following the initial existence of one or more of the
circumstances giving rise to Good Reason.  The failure by the
Executive to set forth in the written notice any fact which contributes to a
showing of Good Reason shall not waive any right of the Executive hereunder or
preclude the Executive from asserting such fact in enforcing the Executive’s
rights hereunder.  For purposes of this Section 3(d)(iii), the “Date
of Termination” shall be the earlier of (i) the last day of the cure
period (assuming no cure has occurred) and (ii) the date Lazard formally
notifies the Executive that it does not intend to cure, unless Lazard and the
Executive agree to a later date, which shall in no event be later than 30 days
following the first to occur of the dates set forth in clauses (i) and (ii) of
this sentence.  The Executive’s mental or physical incapacity
following the occurrence of an event described above in clause (A) or (B) shall
not affect the Executive’s ability to terminate employment for Good
Reason.

       

       

       

       

      
        
          
          

        

        
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      (iv)       Notice
of Termination.  Any termination by the Firm for Cause shall be
communicated by Notice of Termination to the other party hereto given in
accordance with Section 16(c) of this Agreement.  For purposes of this
Agreement, a “Notice
of Termination” means a written notice which (A) indicates the
specific termination provision in this Agreement relied upon, (B) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under
the provision so indicated, and (C) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date shall be not more than 30 days after the giving of
such notice).  The failure by the Firm to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Cause
shall not waive any right of the Firm hereunder or preclude the Firm from
asserting such fact or circumstance in enforcing the Firm’s rights
hereunder.

       

      (v)       Date
of Termination.  For purposes of this Agreement, “Date
of Termination” means (A) if the Executive’s employment is
terminated by the Firm for Cause, the date of receipt of the Notice of
Termination or any later date specified therein within 30 days of such notice,
as the case may be, (B) if the Executive’s employment is terminated by the
Firm other than for Cause or Disability, the Date of Termination shall be the
date on which the Firm notifies the Executive of such termination, (C) if
the Executive’s employment is voluntarily terminated by the Executive without
Good Reason, the Date of Termination shall be the date as specified by the
Executive in the Notice of Termination, which date shall not be less than three
months after the Executive notifies the Firm of such termination, unless waived
in writing by the Firm, and (D) if the Executive’s employment is terminated
by reason of death or Disability, the Date of Termination shall be the date of
death of the Executive or the Disability Effective Date, as the case may
be.  The Firm and the Executive shall take all steps necessary
(including with regard to any post-termination services by the Executive) to
ensure that any termination described in this Section 3(d) constitutes a
“separation from service” within the meaning of Section 409A of the Code, and
notwithstanding anything contained herein to the contrary, the date on which
such separation from service takes place shall be the “Date of
Termination.”

       

      (e)           Obligations
of the Firm upon Termination.

       

      (i)       By
the Firm Other Than for Cause, Death or Disability or By the Executive for Good
Reason.  If, during the Term, the Firm shall terminate the
Executive’s employment other than for Cause, death or Disability or the
Executive shall terminate employment for Good Reason:

       

      (A)     the
Firm shall pay to the Executive in a lump sum in cash within 30 days after the
Date of Termination the aggregate of the following amounts:

       

       

       

      
        
          
          

        

        
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                (I)  the
      sum of (x) the Executive’s Base Salary through the Date of Termination,
      and (y) any earned and unpaid cash Bonus amounts for fiscal years of
      Lazard completed prior to the Date of Termination (determined in
      accordance with Section 3(c)(ii) above and with any such Bonus to be paid
      in full in cash) (the sum of the amounts described in subclauses (x) and
      (y), the “Accrued
      Obligations”); and

              

      

       

      
        	
                 
      

              	
                (II)
      the amount equal to the product of (x) two (2), if the Date of Termination
      occurs prior to a Change of Control, or three (3), if the Date of
      Termination occurs on or following the date of a Change of Control (the
      applicable number referred to herein as the “Severance
      Multiple”), and (y) the sum of (1) the Executive’s Base Salary and
      (2) the average
      Bonus (or, to the extent applicable, cash distributions, and including any
      Bonuses paid in the form of equity awards based on the grant date value of
      such equity awards in accordance with the normal valuation methodology
      used by Lazard) paid or payable to the Executive for the two completed
      fiscal years of Lazard immediately preceding the fiscal year during which
      occurs the Date of Termination (the “Average
      Annual Bonus”); and

              

      

       

      (B)      (I)
for a period of months equal to the product of (x) 12 and (y) the Severance
Multiple, the Executive and his eligible dependents shall continue to be
eligible to participate in the medical and dental benefit plans of Lazard on the
same basis as the Executive participated in such plans immediately prior to the
Date of Termination, to the extent that the applicable plan permits such
continued participation for all or any portion of such period (it being agreed
that Lazard will use its reasonable efforts to cause such continued coverage to
be permitted under the applicable plan for the entire period), which benefits
continuation period shall not run concurrently with or reduce the Executive’s
right to continued coverage under COBRA; provided,
however,
that if there is a post-employment policy or program in place at Lazard
as of the Date of Termination that provides for more favorable benefits, the
Executive shall be entitled to participate in such more favorable arrangement,
and (II) to the extent permitted under the applicable plan, for purposes of
determining his eligibility for and right to commence receiving benefits under
the retiree health care benefit plans of Lazard, the Executive will receive
additional years of age and service credit equal to the Severance Multiple
(collectively, clauses I and II referred to herein as the “Medical
Benefits”); and

       

      (C)     
the Executive shall receive a pro-rata annual bonus payable in cash (the “Pro-rata
Bonus”) determined as follows:

       

      (I) if
the Date of Termination occurs prior to or on December 31, 2008, the Pro-rata
Bonus shall be determined by the administrator of the Lazard Ltd 2005 Bonus Plan
consistent with Section 5(c) thereof on the same basis as annual bonus is
determined for other executive officers of PubliCo;

       

       

       

      
        
          
          

        

        
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      (II) if
(x) the Date of Termination occurs after December 31, 2008 and prior to or on
December 31, 2010 and (y) with respect to the fiscal year during which the Date
of Termination occurs, (1) the Executive was reasonably expected by Lazard to be
a “covered employee” (within the meaning of Section 162(m) of the Code) prior to
his Date of Termination, and (2) the annual bonus that the Executive was
eligible to receive for such year was originally intended by Lazard to satisfy
the performance-based exception under Section 162(m) of the Code (without regard
to any entitlement to payment upon termination of employment), the Executive’s
Pro-rata Bonus shall equal the product of (1) the amount determined by the
Committee based on the Firm’s actual performance for the fiscal year of the Firm
in which the Date of Termination occurs on the same basis as annual bonus is
determined for other executive officers of the Firm, which, subject to the
limits on any such bonus due to the level of satisfaction of the performance
goals previously established for purposes of Section 162(m) of the Code, shall
not represent (on an annualized basis) a percentage of the Executive’s Bonus for
the fiscal year preceding the fiscal year in which the Date of Termination
occurs that is lower than the average corresponding percentage applicable to (i)
active executives of Lazard who received bonuses for such prior fiscal year in
amounts within 5% of the Executive’s Bonus for such prior fiscal year, or (ii)
in the event there are not at least three active executives of Lazard who
received bonuses for such prior fiscal year in amounts within 5% of the
Executive’s Bonus for such prior fiscal year, the three highest paid active
executives of Lazard in the Financial Advisory Group other than the CEO), and
(2) a fraction, the numerator of which is the number of days elapsed in the
fiscal year of Lazard in which occurs the Date of Termination through the Date
of Termination, and the denominator of which is 365 (the “Pro-ration
Fraction”); or

       

      (III) if
(A) the Date of Termination occurs after December 31, 2008 and prior to or on
March 31, 2011 and (B) with respect to the fiscal year during which the Date of
Termination occurs, the Executive is not reasonably expected by Lazard to be a
“covered employee” (within the meaning of Section 162(m) of the Code) prior to
his Date of Termination, the Pro-rata Bonus shall equal the product of (1) the
Average Annual Bonus and (2) the Pro-ration Fraction.

       

      The
Pro-rata Bonus determined pursuant to clause (I), (II) or (III) above, as
applicable, shall be paid at such time or times as Lazard otherwise makes
incentive payments for such fiscal year (and in all events prior to March 15 of
the year following the year in which the Date of Termination
occurs).

       

      (D)           to
the extent not theretofore paid or provided, the Firm shall timely pay or
provide to the Executive any other amounts or benefits required to be paid or
provided or which the Executive is eligible to receive under any plan, program,
policy or practice or contract or agreement of the Firm and its affiliates
through the Date of Termination (such other amounts and benefits shall be
hereinafter referred to as the “Other
Benefits”).

       

       

       

      
        
          
          

        

        
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      (ii)       Death.  If
the Executive’s employment is terminated by reason of the Executive’s death
during the Term, this Agreement shall terminate without further obligations to
the Executive’s legal representatives under this Agreement, other than for
payment of the Accrued Obligations, the Pro-rata Bonus (determined under clause
III of Section 3(e)(i)(C)) and the timely payment or provision of Other
Benefits.  The Accrued Obligations and the Pro-rata Bonus shall be
paid to the Executive’s estate or beneficiary, as applicable, in a lump sum in
cash within 30 days of the Date of Termination.  With respect to the
provision of Other Benefits, the term Other Benefits as utilized in this Section
3(e)(ii) shall include death benefits as in effect on the date of the
Executive’s death with respect to senior executives of the
Firm.

       

      (iii)       Disability.  If
the Executive’s employment is terminated by reason of the Executive’s Disability
during the Term, this Agreement shall terminate without further obligations to
the Executive, other than for payment of the Accrued Obligations, the Pro-rata
Bonus (determined under clause III of Section 3(e)(i)(C)) and the timely payment
or provision of Other Benefits.  The Accrued Obligations and the
Pro-rata Bonus shall be paid to the Executive in a lump sum in cash within 30
days of the Date of Termination.  With respect to the provision of
Other Benefits, the term Other Benefits as utilized in this Section 3(e)(iii)
shall include, and the Executive shall be entitled after the Disability
Effective Date to receive, disability and other benefits as in effect at any
time thereafter generally with respect to senior executives of the Firm (which
shall include, without limitation, retiree health care
benefits).

       

      (iv)       Cause;
Other Than for Good Reason; Expiration of the Term.  If, during
the portion of the Term commencing on the Effective Date, the Executive’s
employment shall be terminated for Cause or the Executive terminates his
employment without Good Reason, or if the Executive’s employment with the Firm
ceases upon or following the expiration of the Term, this Agreement shall
terminate without further obligations to the Executive other than the obligation
to pay or provide to the Executive (i) the Accrued Obligations and
(ii) the Other Benefits (which shall include, without limitation, retiree
health care benefits).

       

      (v)        Retirement.  Notwithstanding
anything contained herein or in any restricted stock unit award agreement
entered into between the Firm and the Executive prior to or after the date
hereof (the “RSU
Agreements”), with respect to (A) all restricted stock units granted to
the Executive prior to the date hereof and (B) all restricted stock units
granted to the Executive after the date hereof as part of the Firm’s ordinary
annual incentive compensation process (all such awards, referred to herein as
“Ordinary
Compensation Awards”), if the Executive voluntarily terminates his
employment on or after March 31, 2011, subject to the Executive’s continued
compliance with the restrictive covenants set forth in the applicable RSU
Agreement through the applicable vesting date of the Ordinary Compensation Award
(without regard to the earlier expiration of the stated duration of any such
restricted covenant, other than such earlier expiration due to the occurrence of
a “change of control” of the Firm as defined in the Firm’s applicable equity
incentive plan), the Executive’s Ordinary Compensation Awards will continue to
vest on the dates (or upon the events) set forth in each such RSU Agreement;
provided,
however,
that, if, as of the date of the Executive’s voluntary termination of employment
(whether prior to, on or after March 31, 2011), the Firm has adopted a
retirement policy applicable to the Firm’s equity compensation program (the
“Retirement
Policy”) that provides the Executive with more favorable treatment than
the treatment set forth above, subject to the Executive’s satisfaction of the
eligibility requirements of such Retirement Policy and compliance with the terms
thereof, the Executive’s Ordinary Compensation Awards will vest or continue to
vest in accordance with the terms of the Retirement Policy.  Prior to
the grant of equity awards that are not Ordinary Compensation Awards (if any),
the Executive and the Firm will in good faith mutually agree as to the
retirement treatment of such awards.  Nothing in this Section 3(e)(v)
shall be interpreted or construed to result in or require either (A) the
delivery of shares in respect of the Executive’s restricted stock units prior to
the first date or event provided under the applicable RSU Agreement and
permitted under Section 409A of the Code or (B) the delay of the delivery of
shares in respect of the Executive’s restricted stock units to a date after the
first date or event provided under the applicable RSU Agreement and permitted
under Section 409A of the Code.

       

       

       

      
        
          
          

        

        
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      (f)      Section
409A of the Code.  It is the intention of the parties that the
payments and benefits to which the Executive could become entitled in connection
with termination of employment under this Agreement comply with or are exempt
from the definition of “nonqualified deferred compensation” under Section 409A
of the Code.  In this regard, notwithstanding anything in this
Agreement to the contrary, all cash amounts that become payable under Section
3(e)(i) through (iv) of this Agreement on account of the Executive’s termination
of employment shall be paid no later than March 15 of the year following the
year in which the Date of Termination occurs.  In the event the
parties determine that the terms of this Agreement do not comply with Section
409A, they will negotiate reasonably and in good faith to amend the terms of
this Agreement such that it complies (in a manner that attempts to minimize the
economic impact of such amendment on the Executive and the Firm) within the time
period permitted by the applicable Treasury Regulations.  For purposes
of the provision of the Medical Benefits as provided above, the amount of such
health care benefits provided in any given calendar year shall not affect the
amount of such benefits provided in any other calendar year, and the Executive’s
right to the health care benefits may not be liquidated or exchanged for any
other benefit.

       

      (g)     Non-exclusivity
of Rights.  Except as specifically provided, nothing in this
Agreement shall prevent or limit the Executive’s continuing or future
participation in any plan, program, policy or practice provided by the Firm or
any of its affiliates and for which the Executive may qualify, provided that to
the extent the Executive is entitled to severance pay under Section 3(e) of this
Agreement, he shall not be entitled to severance pay under any severance policy
of the Firm or its affiliates.  Amounts or benefits that are vested
benefits or which the Executive is otherwise entitled to receive under any plan,
policy, practice or program of or any contract or agreement with the Firm or any
of its affiliates at or subsequent to the Date of Termination shall be payable
in accordance with such plan, policy, practice or program or contract or
agreement except as explicitly modified by this Agreement.

       

       

       

      
        
          
          

        

        
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      (h)     Full
Settlement.  In no event shall the Executive be obligated to
seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and, such amounts shall not be reduced whether or not the Executive obtains
other employment.  Except as provided in Section 16(f), the Firm’s
obligation to make the payments provided for in this Agreement and otherwise to
perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the Firm
may have against the Executive.

       

      (i)      Certain
Additional Payments by the Firm.

       

      (i)       Anything
in this Agreement to the contrary notwithstanding and except as set forth below,
in the event it shall be determined that any payment, benefit or distribution by
the Firm or its affiliates to or for the benefit of the Executive (whether paid
or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise, but determined without regard to any additional payments
required under this Section 3(i)) (a “Payment”)
would be subject to the excise tax imposed by Section 4999 of the Code or any
interest or penalties are incurred by the Executive with respect to such excise
tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise
Tax”), then the Executive shall be entitled to receive an additional
payment (a “Gross-Up
Payment”) in an amount such that after payment by the Executive of all
taxes (including any interest or penalties imposed with respect to such taxes),
including, without limitation, any income taxes (and any interest and penalties
imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment,
but excluding any income taxes and penalties imposed pursuant to Section 409A of
the Code, the Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments.  The Firm’s obligation to make
Gross-Up Payments under this Section 3(i) shall not be conditioned upon the
Executive’s termination of employment.

       

      (ii)       Subject
to the provisions of Section 3(i)(iii), all determinations required to be
made under this Section 3(i), including whether and when a Gross-Up Payment is
required and the amount of such Gross-Up Payment and the assumptions to be
utilized in arriving at such determination, shall be made by Deloitte &
Touche LLP or such other nationally recognized certified public accounting firm
reasonably acceptable to the Firm as may be designated by the Executive (the
“Accounting
Firm”) which shall provide detailed supporting calculations both to the
Firm and the Executive within 15 business days of the receipt of notice from the
Executive that there has been a Payment, or such earlier time as is requested by
the Firm.  All fees and expenses of the Accounting Firm shall be borne
solely by the Firm.  Any determination by the Accounting Firm shall be
binding upon the Firm and the Executive.  As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Firm should have been
made (“Underpayment”),
consistent with the calculations required to be made hereunder.  In
the event that the Firm exhausts its remedies pursuant to Section 3(i)(iii) and
the Executive thereafter is required to make a payment of any Excise Tax, the
Accounting Firm shall determine the amount of the Underpayment that has occurred
and any such Underpayment shall be promptly paid by the Firm to or for the
benefit of the Executive.

       

       

       

      
        
          
          

        

        
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      (iii)       The
Executive shall notify the Firm in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Firm of the
Gross-Up Payment.  Such notification shall be given as soon as
practicable but no later than ten business days after the Executive is informed
in writing of such claim and shall apprise the Firm of the nature of such claim
and the date on which such claim is requested to be paid.  The
Executive shall not pay such claim prior to the expiration of the 30-day period
following the date on which it gives such notice to the Firm (or such shorter
period ending on the date that any payment of taxes with respect to such claim
is due).  If the Firm notifies the Executive in writing prior to the
expiration of such period that it desires to contest such claim, the Executive
shall:

       

      (A)    give
the Firm any information reasonably requested by the Firm relating to such
claim,

       

      (B)    take
such action in connection with contesting such claim as the Firm shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney
reasonably selected by the Firm,

       

      (C)    cooperate
with the Firm in good faith in order effectively to contest such claim,
and

       

      (D)    permit
the Firm to participate in any proceedings relating to such
claim;

       

      provided,
however,
that the Firm shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest, and
shall indemnify and hold the Executive harmless, on an after-tax basis, for any
Excise Tax or income tax (including interest and penalties with respect thereto)
imposed as a result of such representation and payment of costs and
expenses.  Without limitation on the foregoing provisions of this
Section 3(i)(iii), the Firm shall control all proceedings taken in connection
with such contest, and, at its sole discretion, may pursue or forgo any and all
administrative appeals, proceedings, hearings and conferences with the
applicable taxing authority in respect of such claim and may, at its sole
discretion, either pay the tax claimed to the appropriate taxing authority on
behalf of the Executive and direct the Executive to sue for a refund or contest
the claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Firm shall
determine; provided,
however,
that, if the Firm pays such claim and directs the Executive to sue for a refund,
the Firm shall indemnify and hold the Executive harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties) imposed with
respect to such payment or with respect to any imputed income with respect to
such payment; and further
provided,
that any extension of the statute of limitations relating to payment of taxes
for the taxable year of the Executive with respect to which such contested
amount is claimed to be due is limited solely to such contested
amount.  Furthermore, the Firm’s control of the contest shall be
limited to issues with respect to which the Gross-Up Payment would be payable
hereunder, and the Executive shall be entitled to settle or contest, as the case
may be, any other issue raised by the Internal Revenue Service or any other
taxing authority.

       

       

       

       

      
        
          
          

        

        
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      (iv)        If,
after the receipt by the Executive of a Gross-Up Payment or payment by the Firm
of an amount on the Executive’s behalf pursuant to Section 3(i)(iii), the
Executive becomes entitled to receive any refund with respect to the Excise Tax
to which such Gross-Up Payment relates or with respect to such claim, the
Executive shall (subject to the Firm complying with the requirements of Section
3(i)(iii), if applicable) promptly pay to the Firm the amount of such refund
(together with any interest paid or credited thereon after taxes applicable
thereto).  If, after payment by the Firm of an amount on the
Executive’s behalf pursuant to Section 3(i)(iii), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim and
the Firm does not notify the Executive in writing of its intent to contest such
denial of refund prior to the expiration of 30 days after such determination,
then the amount previously paid shall offset, to the extent thereof, the amount
of Gross-Up Payment required to be paid.

       

      (v)        Any
Gross-Up Payment, as determined pursuant to this Section 3(i), shall be paid by
the Firm to the Executive within five days of the receipt of the Accounting
Firm’s determination; provided
that, the Gross-Up Payment shall in all events be paid no later than the end of
the Executive’s taxable year next following the Executive’s taxable year in
which the Excise Tax (and any income or other related taxes or interest or
penalties thereon) on a Payment are remitted to the Internal Revenue Service or
any other applicable taxing authority or, in the case of amounts relating to a
claim described in Section 3(i)(iii) that does not result in the remittance of
any federal, state, local and foreign income, excise, social security and other
taxes, the calendar year in which the claim is finally settled or otherwise
resolved.  Notwithstanding any other provision of this Section 3(i),
the Firm may, in its sole discretion, withhold and pay over to the Internal
Revenue Service or any other applicable taxing authority, for the benefit of the
Executive, all or any portion of any Gross-Up Payment, and the Executive hereby
consents to such withholding.

       

      4.           Confidential
Information.  In the course of involvement in the Firm’s
activities or otherwise, the Executive has obtained or may obtain confidential
information concerning the Firm’s businesses, strategies, operations, financial
affairs, organizational and personnel matters (including information regarding
any aspect of the Executive’s tenure as a managing director, member, partner or
employee of the Firm or of the termination of such position, partnership or
employment), policies, procedures and other non-public matters, or concerning
those of third parties.  The Executive shall not at any time (whether
during or after the Executive’s employment with the Firm) disclose or use for
the Executive’s own benefit or purposes or the benefit or purposes of any other
person, firm, partnership, joint venture, association, corporation or other
business organization, entity or enterprise other than the Firm, any trade
secrets, information, data, or other confidential or proprietary information
relating to customers, development programs, costs, marketing, trading,
investment, sales activities, promotion, credit and financial data, financing
methods, plans, or the business and affairs of the Firm, provided that the
foregoing shall not apply to information which is not unique to the Firm or
which is generally known to the industry or the public other than as a result of
the Executive’s breach of this covenant or as required pursuant to an order of a
court, governmental agency or other authorized tribunal.  The
Executive agrees that upon termination of the Executive’s employment with the
Firm for any reason, the Executive or, in the event of the Executive’s death,
the Executive’s heirs or estate at the request of the Firm, shall return to the
Firm immediately all memoranda, books, papers, plans, information, letters and
other data, and all copies thereof or therefrom, in any way relating to the
business of the Firm, except that the Executive (or the Executive’s heirs or
estate) may retain personal notes, notebooks and diaries.  The
Executive further agrees that the Executive shall not retain or use for the
Executive’s account at any time any trade names, trademark or other proprietary
business designation used or owned in connection with the businesses of the
Firm.  Without limiting the foregoing, the existence of, and any
information concerning, any dispute between the Executive and the Firm shall be
subject to the terms of this Section 4, except that the Executive may disclose
information concerning such dispute to the arbitrator or court that is
considering such dispute, and to the Executive’s legal counsel, spouse or
domestic partner, and tax and financial advisors (provided that such persons
agree not to disclose any such information other than as necessary to the
prosecution or defense of the dispute).

       

       

       

      
        
          
          

        

        
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      5.           Noncompetition.

       

      (a)           The
Executive acknowledges and recognizes the highly competitive nature of the
businesses of the Firm.  The Executive further acknowledges and agrees
that in connection with the Reorganization, and in the course of the Executive’s
subsequent employment with the Firm, the Executive has been and shall be
provided with access to sensitive and proprietary information about the clients,
prospective clients, knowledge capital and business practices of the Firm, and
has been and shall be provided with the opportunity to develop relationships
with clients, prospective clients, consultants, employees, representatives and
other agents of the Firm, and the Executive further acknowledges that such
proprietary information and relationships are extremely valuable assets in which
the Firm has invested and shall continue to invest substantial time, effort and
expense.  As a Managing Director and Class A Member of Lazard, the
Executive is currently bound by certain restrictive covenants, including a
noncompetition restriction, pursuant to the terms of the Goodwill
Agreement.  Accordingly, the Executive hereby reaffirms and agrees
that while employed by the Firm and thereafter until (i) three months after the
Executive’s Date of Termination for any reason other than a termination by the
Firm without Cause or by the Executive for Good Reason or (ii) one month after
the Executive’s Date of Termination by the Firm without Cause or by the
Executive for Good Reason (such period, the “Noncompete
Restriction Period”), the Executive shall not, directly or indirectly, on
the Executive’s behalf or on behalf of any other person, firm, corporation,
association or other entity, as an employee, director, advisor, partner,
consultant or otherwise, engage in a “Competing Activity,” or acquire or
maintain any ownership interest in, a “Competitive Enterprise.”  For
purposes of this Agreement, (i) “Competing
Activity” means the providing of services or performance of activities
for a Competitive Enterprise in a line of business that is similar to any line
of business to which the Executive provided services to the Firm in a capacity
that is similar to the capacity in which the Executive acted for the Firm while
employed by the Firm, and (ii) ”Competitive
Enterprise” shall mean a business (or business unit) that (A) engages in
any activity or (B) owns or controls a significant interest in any entity
that engages in any activity, that in either case, competes anywhere with any
activity in which the Firm is engaged up to and including the Executive’s Date
of Termination.  Notwithstanding anything to the contrary in this
Section 5, the foregoing provisions of this Section 5 shall not prohibit the
Executive’s providing services to an entity having a stand-alone business unit
which unit would, if considered separately for purposes of the definition of
“Competitive Enterprise” hereunder, constitute such a Competitive Enterprise,
provided the Executive is not providing services to such business unit and
provided further that employment in a senior executive capacity of the business
unit shall be deemed to be engaging in a Competitive
Activity.  Further, notwithstanding anything in this Section 5, the
Executive shall not be considered to be in violation of this Section 5 solely by
reason of owning, directly or indirectly, any stock or other securities of a
Competitive Enterprise (or comparable interest, including a voting or profit
participation interest, in any such Competitive Enterprise) if the Executive’s
interest does not exceed 5% of the outstanding capital stock of such Competitive
Enterprise (or comparable interest, including a voting or profit participation
interest, in such Competitive Enterprise).

       

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

       

       

       

      (b)           The
Executive acknowledges that the Firm is engaged in business throughout the
world.  Accordingly, and in view of the nature of the Executive’s
position and responsibilities, the Executive agrees that the provisions of this
Section 5 shall be applicable to each jurisdiction, foreign country, state,
possession or territory in which the Firm may be engaged in business while the
Executive is employed by the Firm.

       

      6.           Nonsolicitation
of Clients.  The Executive hereby agrees that during the
Noncompete Restriction Period, the Executive shall not, in any manner, directly
or indirectly, (a) Solicit a Client to transact business with a Competitive
Enterprise or to reduce or refrain from doing any business with the Firm, to the
extent the Executive is soliciting a Client to provide them with services that
would be considered a Competing Activity if such services were provided by the
Executive, or (b) interfere with or damage (or attempt to interfere with or
damage) any relationship between the Firm and a Client.  For purposes
of this Agreement, the term “Solicit”
means any direct or indirect communication of any kind whatsoever, regardless of
by whom initiated, inviting, advising, persuading, encouraging or requesting any
person or entity, in any manner, to take or refrain from taking any action, and
the term “Client”
means any client or prospective client of the Firm to whom the Executive
provided services, or for whom the Executive transacted business, or whose
identity became known to the Executive in connection with the Executive’s
relationship with or employment by the Firm, whether or not the Firm has been
engaged by such Client pursuant to a written agreement; provided that an entity
which is not a client of the Firm shall be considered a “prospective client” for
purposes of this sentence only if the Firm made a presentation or written
proposal to such entity during the 12-month period preceding the Date of
Termination or was preparing to make such a presentation or proposal at the time
of the Date of Termination.

       

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

       

      7.           No
Hire of Employees.  The Executive hereby agrees that while
employed by the Firm and thereafter until six-months
after the Executive’s Date of Termination (the “No
Hire Restriction Period”), the Executive shall not, directly or
indirectly, for himself or on behalf of any third party at any time in any
manner, Solicit, hire, or otherwise cause any employee who is at the associate
level or above, officer or agent of the Firm to apply for, or accept employment
with, any Competitive Enterprise, or to otherwise refrain from rendering
services to the Firm or to terminate his or her relationship, contractual or
otherwise, with the Firm, other than in response to a general advertisement or
public solicitation not directed specifically to employees of the
Firm.

       

      8.           Nondisparagement;
Transfer of Client Relationships.  The Executive shall not at
any time (whether during or after the Executive’s employment with the Firm), and
shall instruct his spouse, domestic partner, parents, and any of their lineal
descendants (it being agreed that in any dispute between the parties regarding
whether the Executive breached such obligation to instruct, the Firm shall bear
the burden of demonstrating that the Executive breached such obligation) not to,
make any comments or statements to the press, employees of the Firm, any
individual or entity with whom the Firm has a business relationship or any other
person, if such comment or statement is disparaging to the Firm, its reputation,
any of its affiliates or any of its current or former officers, members or
directors, except for truthful statements as may be required by
law.  During the period commencing on the Executive’s Date of
Termination and ending 90 days thereafter, the Executive hereby agrees to take
all actions and do all such things as may be reasonably requested by the Firm
from time to time to maintain for the Firm the business, goodwill, and business
relationships with any of the Firm’s Clients with whom the Executive worked
during the term of the Executive’s employment, provided that such actions and
things do not materially interfere with other employment of the
Executive.

       

      9.           Notice
of Termination Required.  Pursuant to Sections 3(d)(iv) and
(v), the Executive has agreed to provide three months’ written notice to the
Firm prior to his termination of employment.  The Executive hereby
agrees that, if, during the three-month period after the Executive has provided
notice of termination to the Firm or prior thereto, the Executive enters (or has
entered into) a written agreement to perform Competing Activities for a
Competitive Enterprise, such action shall be deemed a violation of Section
5.

       

      10.         Covenants
Generally.

       

      (a)           The
Executive’s covenants as set forth in Sections 4 through 9 of this Agreement are
from time to time referred to herein as the “Covenants.”  If
any of the Covenants is finally held to be invalid, illegal or unenforceable
(whether in whole or in part), such Covenant shall be deemed modified to the
extent, but only to the extent, of such invalidity, illegality or
unenforceability and the remaining such Covenants shall not be affected thereby;
provided,
however,
that if any of such Covenants is finally held to be invalid, illegal or
unenforceable because it exceeds the maximum scope determined to be acceptable
to permit such provision to be enforceable, such Covenant shall be deemed to be
modified to the minimum extent necessary to modify such scope in order to make
such provision enforceable hereunder.

       

      (b)           The
Executive acknowledges that the Executive’s compliance with the Covenants is an
important factor to the continued success of the Firm’s operations and its
future prospects.  The Executive further acknowledges the importance
to the Firm of his continued employment during the period prior to and following
the IPO Date and of his not competing or otherwise interfering with the Firm
during such period.  The Executive understands that the provisions of
the Covenants may limit the Executive’s ability to work in a business similar to
the business of the Firm; however,
the Executive agrees that in light of the Executive’s education, skills,
abilities and financial resources, the Executive shall not assert, and it shall
not be relevant nor admissible as evidence in any dispute arising in respect of
the Covenants, that any provisions of the Covenants prevent the Executive from
earning a living.  In connection with the enforcement of or any
dispute arising in connection with the Covenants, the wishes or preferences of a
Client or prospective Client of the Firm as to who shall perform its services,
or the fact that the Client or prospective Client of the Firm may also be a
Client of a third party with whom the Executive is or becomes associated, shall
neither be relevant nor admissible as evidence.  The Executive hereby
agrees that prior to accepting employment with any other person or entity during
his employment with the Firm or during the Noncompete Restriction Period or the
No Hire Restriction Period, the Executive shall provide such prospective
employer with written notice of the provisions of this Agreement, with a copy of
such notice delivered no later than the date of the Executive’s commencement of
such employment with such prospective employer, to the General Counsel of Lazard
or HoldCo, as the case may be.

       

       

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

       

       

       

      (c)           The
provisions of Sections 4 through 11 shall remain in full force and effect from
the date hereof through the expiration of the period specified therein
notwithstanding the earlier termination of the Term or the Executive’s
employment.

       

      11.           Remedies.

       

      (a)           Forfeiture
of Class A-2 Interests upon a Breach of the Covenants Prior to the IPO
Date.  If, during the period from the date hereof through the
IPO Date, the Executive breaches any of the Covenants set forth in Section 5, 6
or 7 in any respect or breaches any other Covenant in a material respect, the
Executive shall be required to forfeit (i) all unvested Class A-2 Interests,
plus (ii) if the Executive has violated the Goodwill Agreement, all vested Class
A-2 Interests (such forfeitures, the “Pre-IPO
Damages”).  The Executive and Lazard agree that the Pre-IPO
Damages are reasonable in proportion to the probable damages likely to be
sustained by the Firm if the Executive breaches the Covenants, that the amount
of actual damages to be sustained by the Firm in the event of such breach is
incapable of precise estimation, that such forfeiture of interests is not
intended to constitute a penalty or punitive damages for any purposes, and that
the forfeiture of such interests by the Executive would not result in severe
economic hardship for the Executive and his family.  The Executive
further agrees that satisfaction of any Pre-IPO Damages as set forth in this
Section 11(a) shall not, in any manner, relieve the Executive of any future
obligations to abide by the Covenants.

       

      (b)           Other
Remedies.  The Firm and the Executive acknowledge that the
time, scope, geographic area and other provisions of the Covenants have been
specifically negotiated by sophisticated commercial parties and agree that all
such provisions are reasonable under the circumstances of the activities
contemplated by this Agreement.  The Executive acknowledges and agrees
that the terms of the Covenants:  (i) are reasonable in light of
all of the circumstances, (ii) are sufficiently limited to protect the
legitimate interests of the Firm, (iii) impose no undue hardship on the
Executive and (iv) are not injurious to the public.  The
Executive further acknowledges and agrees that the Executive’s breach of the
Covenants will cause the Firm irreparable harm, which cannot be adequately
compensated by money damages.  The Executive also agrees that the Firm
shall be entitled to injunctive relief for any actual or threatened violation of
any of the Covenants in addition to any other remedies it may have, including
money damages.  The Executive acknowledges and agrees that any such
injunctive relief or other remedies (including the Pre-IPO Damages) shall be in
addition to, and not in lieu of, any forfeitures of awards (required pursuant to
the terms of any such awards) that may be granted to the Executive in the future
under one or more of the Firm’s compensation and benefit
plans.

       

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

       

       

      12.           Arbitration.  Subject
to the provisions of Sections 13 and 14, any dispute, controversy or claim
between the Executive and the Firm on or subsequent to the IPO Date arising out
of or relating to or concerning the provisions of this Agreement, any agreement
between the Executive and the Firm relating to or arising out of the Executive’s
employment with the Firm or otherwise concerning any rights, obligations or
other aspects of the Executive’s employment relationship in respect of the Firm
(“Employment
Related Matters”), shall be finally settled by arbitration in New York
City before, and in accordance with the rules then obtaining of, the Financial
Industry Regulatory Authority (“FINRA”)
or, if FINRA declines to arbitrate the matter, the American Arbitration
Association (the “AAA”)
in accordance with the commercial arbitration rules of the AAA.  Prior
to the IPO Date, any such dispute shall be resolved in accordance with the
provisions of Section 9.04 of the LLC Agreement.

       

      13.           Injunctive
Relief; Submission to Jurisdiction.  Notwithstanding the
provisions of Section 12, and in addition to its right to submit any dispute or
controversy to arbitration, the Firm may bring an action or special proceeding
in a state or federal court of competent jurisdiction sitting in the City of New
York, whether or not an arbitration proceeding has theretofore been or is ever
initiated, for the purpose of temporarily, preliminarily, or permanently
enforcing the provisions of the Covenants, or to enforce an arbitration award,
and, for the purposes of this Section 13, the Executive (a) expressly consents
to the application of Section 14 to any such action or proceeding, (b) agrees
that proof shall not be required that monetary damages for breach of the
provisions of the Covenants or this Agreement would be difficult to calculate
and that remedies at law would be inadequate, and (c) irrevocably appoints the
General Counsel of Lazard as the Executive’s agent for service of process in
connection with any such action or proceeding, who shall promptly advise the
Executive of any such service of process.

       

      14.           Choice
of Forum.

       

      (a)           THE
EXECUTIVE AND THE FIRM HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION
OF ANY STATE OR FEDERAL COURT LOCATED IN THE CITY OF NEW YORK OVER ANY SUIT,
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO OR CONCERNING THIS AGREEMENT
OR ANY EMPLOYMENT RELATED MATTERS THAT IS NOT OTHERWISE REQUIRED TO BE
ARBITRATED OR RESOLVED ACCORDING TO THE PROVISIONS OF SECTION
12.  This includes any suit, action or proceeding to compel
arbitration or to enforce an arbitration award.  This also includes
any suit, action, or proceeding arising out of or relating to any
post-employment Employment Related Matters.  The Executive and the
Firm acknowledge that the forum designated by this Section 14 has a reasonable
relation to this Agreement, and to the Executive’s relationship to the
Firm.  Notwithstanding the foregoing, nothing herein shall preclude
the Firm or the Executive from bringing any action or proceeding in any other
court for the purpose of enforcing the provisions of Sections 13, 14 or
15.

       

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

       

       

      
        (b)           The
agreement of the Executive and the Firm as to forum is independent of the law
that may be applied in the action, and the Executive and the Firm agree to such
forum even if the forum may under applicable law choose to apply non-forum
law.  The Executive and the Firm hereby waive, to the fullest extent
permitted by applicable law, any objection which the Executive or the Firm now
or hereafter may have to personal jurisdiction or to the laying of venue of any
such suit, action or proceeding in any court referred to in Section
14(a).  The Executive and the Firm undertake not to commence any
action arising out of or relating to or concerning this Agreement in any forum
other than a forum described in this Section 14, or, to the extent applicable,
Section 12.  The Executive and the Firm agree that, to the fullest
extent permitted by applicable law, a final and non-appealable judgment in any
such suit, action or proceeding in any such court shall be conclusive and
binding upon the Executive and the Firm.

         

      

      15.           Choice
of Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (UNITED STATES OF AMERICA),
WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS WHICH COULD CAUSE THE
APPLICATION OF THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF NEW
YORK.

       

      16.           Miscellaneous.

       

      (a)           This
Agreement shall supersede any other agreement, written or oral, pertaining to
the matters covered herein.

       

      (b)           Sections
3(e), 3(h), 3(i), 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 and 15 shall survive the
termination of this Agreement and the Executive’s employment and shall inure to
the benefit of and be binding and enforceable by the Firm and the
Executive.  For purposes of clarity, rights upon a termination of
employment following the expiration of the Term as set forth in Section 3(e)(iv)
of this Agreement and the retirement rights set forth in Section 3(e)(v) of this
Agreement shall survive and continue to apply and be available to the Executive
following the expiration of the Term of this Agreement and shall be available to
the Executive for the duration of his employment with the
Firm.

       

      (c)           Notices
hereunder shall be delivered to Lazard at its principal executive office
directed to the attention of its General Counsel, and to the Executive at the
Executive’s last address appearing in the Firm’s employment
records.  All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage
prepaid.

       

      (d)           This
Agreement may not be amended or modified, other than by a written agreement
executed by the Executive and the Firm, nor may any provision hereof be waived
other than by a writing executed by the Executive or the Firm; provided,
that any waiver, consent, amendment or modification of any of the provisions of
this Agreement shall not be effective against the Firm without the written
consent of the CEO or such individual’s designee.  The Executive may
not, directly or indirectly (including by operation of law), assign the
Executive’s rights or obligations hereunder without the prior written consent of
the CEO or such individual’s designee, and any such assignment by the Executive
in violation of this Agreement shall be void.  This Agreement shall be
binding upon the Executive’s permitted successors and
assigns.  Without the Executive’s consent, Lazard may at any time and
from time to time assign its rights and obligations hereunder to any of its
subsidiaries or affiliates (and have such rights and obligations reassigned to
it or to any other subsidiary or affiliate), provided that no such assignment
shall relieve Lazard from its obligations under this Agreement or impair
Lazard’s right to enforce this Agreement against the Executive.  This
Agreement shall be binding upon and inure to the benefit of the Firm and its
successors and assigns.

       

       

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

       

      (e)           Without
limiting the provisions of Section 10(a), if any provision of this Agreement is
finally held to be invalid, illegal or unenforceable (whether in whole or in
part), such provision shall be deemed modified to the extent, but only to the
extent, of such invalidity, illegality or unenforceability and the remaining
provisions shall not be affected thereby.

       

      (f)           The
Firm may withhold from any amounts payable under this Agreement such Federal,
state, local or foreign taxes as shall be required to be withheld pursuant to
any applicable law or regulation, and may withhold from, and offset by, any
amounts or benefits provided under this Agreement, any amounts owed to the Firm
by the Executive, including, without limitation, any advances, expenses, loans,
or other monies the Executive owes the Firm pursuant to a written agreement or
any written policy of the Firm which has been communicated to the Executive,
except to the extent such withholding or offset is not permitted under Section
409A of the Code without the imposition of additional taxes or penalties on the
Executive.

       

      (g)           Except
as expressly provided herein, this Agreement shall not confer on any person
other than the Firm and the Executive any rights or remedies
hereunder.  There shall be no third-party beneficiaries to this
Agreement.

       

      (h)           The
captions in this Agreement are for convenience of reference only and shall not
define or limit the provisions hereof.

       

       

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

       

       

      IN
WITNESS WHEREOF, the Executive and the Firm hereto have caused this Agreement to
be executed and delivered on the date first above written.

       

       

      
        
          

           

          
            	
                    LAZARD
      LTD

                     

                  	 
	By:	
                    /s/
      Bruce Wasserstein

                  	 
	

                    Name:

                  	
                    Bruce
      Wasserstein

                  	 
	Title:	
                    Chairman
      and Chief Executive Officer

                  	 

          

          

          

          
            	
                    LAZARD
      GROUP LLC

                    (on
      its behalf, and on behalf of its

                    subsidiaries
      and affiliates)

                     

                  	 
	By:	
                    /s/
      Bruce Wasserstein

                  	 
	Name:	
                    Bruce
      Wasserstein

                  	 
	Title:	
                    Chairman and Chief
      Executive Officer

                  	 

          

          
 

          

          
            	
                    STEVEN
      J. GOLUB

                     

                     

                  	 
	By: 	
                    /s/
      Steven J. Golubex10-2.htm

     

    Exhibit
10.2

     

     

    FORM OF
FIRST AMENDMENT TO AGREEMENT RELATING TO RETENTION AND

     

    NONCOMPETITION
AND OTHER COVENANTS

     

    First
Amendment (the “First
Amendment”), dated as of May 7, 2008 (the “Effective Date”), to
Agreement Relating to Retention and Noncompetition and Other Covenants by and
between Lazard Group LLC, a Delaware limited liability company, and successor to
Lazard LLC (“Lazard”), on its
behalf and on behalf of its subsidiaries and affiliates (collectively with
Lazard, and its and their predecessors and successors, the “Firm”),
and [                          
] (the “Executive”), dated as
of May 4, 2005 (the “Agreement”);
and

     

    WHEREAS,
the Firm and the Executive wish to amend the Agreement to (i) make Lazard Ltd, a
company incorporated under the laws of Bermuda (“PubliCo”), a party to
the Agreement, as amended by the First Amendment, through PubliCo’s execution of
the First Amendment, and (ii) modify Schedule I to such Agreement to, among
other things, extend certain of the obligations thereunder and to make such
other changes to the Agreement and Schedule I as are necessary in order for the
terms thereof to comply with Section 409A of the Internal Revenue Code of 1986,
as amended.

     

    NOW,
THEREFORE, in consideration of the premises contained herein and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Executive, Lazard and PubliCo hereby agree as
follows:

     

    Effective
as of the Effective Date, PubliCo shall become a party to the Agreement and
Schedule I of the Agreement shall hereby be amended and restated in the form
attached hereto.

     

    IN
WITNESS WHEREOF, the Executive and the Board of Directors of each of Lazard and
PubliCo have caused this First Amendment to be executed and delivered on the
date first above written.

     

    
      	
               

            
	
              [                                                       
      ]

            

    

    

    

    
      	
              LAZARD
      GROUP LLC

              (on
      its behalf, and on behalf of its

              subsidiaries
      and affiliates)

            
	 
	 
	 
	
              By:

            	
               

            
	
              Name:

            
	
              Title:

            

    

    

    

    
      	
              LAZARD
      LTD

            
	 
	 
	 
	
              By:

            	
               

            
	
              Name:

            
	
              Title:

            

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    

    SCHEDULE
I

     

    
      	
              Name
      (as per Preamble):

            	
              [                                      
      ]

            
	
              HoldCo
      Interests (as per Section 2(b)):

            	
              
                [                                      
      ]

              

            
	
              Profit
      Interests (as per Section 2(d)):

            	
                    
                [                                      
      ]

              

            

    

    

    

            Effective upon the
Effective Date of the First Amendment to this Agreement, this Schedule I shall
take effect and its provisions shall constitute binding and enforceable
agreements of the Firm.

     

            1.           Title.  Notwithstanding
anything to the contrary contained in Section 3(b) of this Agreement, from the
Effective Date through March 31, 2011, the Executive shall serve as
[                                                                   
].

     

            2.           Compensation.  Notwithstanding
anything to the contrary contained in Sections 3(c)(i) and (ii) of this
Agreement, subject to the Executive’s continued employment with the Firm during
the period from the Effective Date through March 31, 2011, the Executive shall
be entitled to receive (i) an annual base salary of not less than
[$                                   
] (“Base
Salary”) and (ii) so long as the Executive remains employed by the Firm
through the end of the applicable fiscal year of Lazard, an annual bonus to be
determined under the terms of the applicable annual bonus plan of Lazard on the
same basis as annual bonus is determined for other executive officers of
PubliCo, with such bonus to be paid in the same ratio of cash to equity awards
as is applicable to executives of the Firm receiving bonuses at a level
comparable to the bonus of the Executive.  For purposes hereof, the
term Base Salary shall refer to Base Salary as in effect from time to time,
including any increases.  Notwithstanding anything to the contrary
contained in Section 3(c)(iv) of this Agreement, during the portion of the Term
commencing on the Effective Date, subject to the Executive’s continued
employment, the Executive shall be eligible to participate in the employee
retirement and welfare benefit plans and programs of the type made available to
the senior most executives of the Firm generally, in accordance with their terms
and as such plans and programs may be in effect from time to time, including,
without limitation, savings, profit-sharing and other retirement plans or
programs, 401(k), medical, dental, flexible spending account, hospitalization,
short-term and long-term disability and life insurance plans.

     

            3.           Severance Pay and Benefits
under Certain Circumstances.  Notwithstanding anything to the
contrary contained in Section 3(d) of this Agreement, in the event that during
the period commencing on the Effective Date and concluding on March 31, 2011,
the Executive’s employment with the Firm is terminated by the Firm without Cause
or by the Executive for Good Reason (as defined below) (a “Qualifying
Termination”), Lazard shall pay the Executive, in a lump sum in cash
within thirty (30) days after the Date of Termination, the aggregate of the
following amounts: (i) any unpaid Base Salary through the Date of Termination;
(ii) any earned and unpaid cash bonus amounts for fiscal years of Lazard
completed prior to the Date of Termination (determined in accordance with
paragraph 2 above and with any such bonus to be paid in full in cash); and (iii)
the product of (1) the “Severance Multiple”
(as defined below) and (2) the sum of (x) the Base Salary and (y) the average annual bonus
(or, to the extent applicable, cash distributions, and including any bonuses
paid in the form of equity awards based on the grant date value of such equity
awards in accordance with the normal valuation methodology used by Lazard) paid
or payable to the Executive for the two completed fiscal years of Lazard
immediately preceding the fiscal year during which occurs the Date of
Termination (the “Average
Bonus”).  In addition, (i) for a period of months equal to the
product of (1) 12 and (2) the Severance Multiple, the Executive and his
eligible dependents shall continue to be eligible to participate in the medical
and dental benefit plans of Lazard on the same basis as the Executive
participated in such plans immediately prior to the Date of Termination, to the
extent that the applicable plan permits such continued participation for all or
any portion of such period (it being agreed that Lazard will use its reasonable
efforts to cause such continued coverage to be permitted under the applicable
plan for the entire period), which benefits continuation period shall not run
concurrently with or reduce the Executive’s right to continued coverage under
COBRA and (ii) to the extent permitted under the applicable plan, the Executive
will receive additional years of age and service credit equal to the Severance
Multiple for purposes of determining his eligibility for and right to commence
receiving benefits under the retiree health care benefit plans of Lazard
Group.  For purposes of the provision of the health care benefits as
provided above, the amount of such health care benefits provided in any given
calendar year shall not affect the amount of such benefits provided in any other
calendar year, and the Executive’s right to the health care benefits may not be
liquidated or exchanged for any other benefit.

     

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

     

        In addition, in
the case of a Qualifying Termination, with respect to the fiscal year of Lazard
during which the Date of Termination occurs, the Executive shall receive a
pro-rata annual bonus payable in cash determined as follows:

     

        (i) if the Date of
Termination occurs prior to or on December 31, 2008, the pro-rata annual bonus
shall be determined by the administrator of the Lazard Ltd 2005 Bonus Plan
consistent with Section 5(c) thereof on the same basis as annual bonus is
determined for other executive officers of PubliCo;

     

        (ii) if (A) the
Date of Termination occurs after December 31, 2008 and prior to or on December
31, 2010 and (B) with respect to the fiscal year during which the Date of
Termination occurs, (1) the Executive was reasonably expected by Lazard to be a
“covered employee” (within the meaning of Section 162(m) of the Internal Revenue
Code of 1986, as amended (the “Code”)) prior to his
Date of Termination, and (2) the annual bonus that the Executive was eligible to
receive for such year was originally intended by Lazard to satisfy the
performance-based exception under Section 162(m) of the Code (without regard to
any entitlement to payment upon termination of employment), the Executive’s
pro-rata annual bonus shall equal the product of (1) the amount determined by
the Compensation Committee based on the Firm’s actual performance for the fiscal
year of the Firm in which the Date of Termination occurs on the same basis as
annual bonus is determined for other executive officers of the Firm (which,
subject to the limits on any such bonus due to the level of satisfaction of the
performance goals previously established for purposes of Section 162(m) of the
Code, shall not represent (on an annualized basis) a percentage of the
Executive’s bonus for the fiscal year preceding the fiscal year in which the
Date of Termination occurs that is lower than the average corresponding
percentage applicable to active executives of Lazard who received bonuses for
such prior fiscal year in amounts within 5% of the Executive’s bonus for such
prior fiscal year), and (2) a fraction, the numerator of which is the number of
days elapsed in the fiscal year of Lazard in which occurs the Date of
Termination through the Date of Termination, and the denominator of which is 365
(the “Pro-Ration
Fraction”); or

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

            (iii) if (A) the Date
of Termination occurs after December 31, 2008 and prior to or on March 31, 2011
and (B) with respect to the fiscal year during which the Date of Termination
occurs, the Executive is not reasonably expected by Lazard to be a “covered
employee” (within the meaning of Section 162(m) of the Code) prior to his Date
of Termination, the pro-rata annual bonus shall equal the product of (1) the
Average Bonus and (2) the Pro-Ration Fraction.

     

            The pro-rata annual
bonus determined pursuant to clause (i), (ii) or (iii) above, as applicable,
shall be paid at such time or times as Lazard otherwise makes incentive payments
for such fiscal year (and in all events prior to March 15 of the year following
the year in which the Date of Termination occurs).

     

            For all
purposes of this Agreement, including without limitation, Sections 2(g)(ii) and
Section 5(a), a resignation on or prior to March 31, 2011 by the Executive for
Good Reason shall be treated as a termination of the Executive by the Firm
without Cause.

     

           
In no event shall the Executive be obligated to seek other employment or take
any other action by way of mitigation of the amounts payable to the Executive
under any of the provisions of this paragraph 3 of this Schedule and such
amounts shall not be reduced whether or not the Executive obtains other
employment.  Except as provided in Section 16(f) of this Agreement,
the Firm’s obligation to make the payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action which
the Firm may have against the Executive.

     

            4.           Certain
Definitions.  For purposes of the Agreement and this Schedule
I, as applicable, the following terms shall have the following
meanings:

     

           
Notwithstanding the definition of “Date of Termination” set forth in Section 5
of the Agreement, for purposes of the Agreement, including Section 5, and this
Schedule I, “Date of Termination” shall mean (i) if the Executive’s
employment is terminated by the Firm for Cause, the date of receipt of the
notice of termination from the Firm or any later date specified therein within
30 days of such notice, as the case may be, (ii) if the Executive’s
employment is terminated by the Firm other than for Cause or Disability, the
date on which the Firm notifies the Executive of such termination, (iii) if
the Executive’s employment is voluntarily terminated by the Executive without
Good Reason, the date as specified by the Executive in the Notice of
Termination, which date shall not be less than three months after the Executive
notifies the Firm of such termination, unless waived in writing by the Firm,
(iv) if the Executive’s employment is terminated by the Executive for Good
Reason, the earlier of (A) the last day of the cure period (assuming no cure has
occurred) and (B) the date Lazard formally notifies the Executive that it does
not intend to cure, unless Lazard and the Executive agree to a later date, which
shall in no event be later than 30 days following the first to occur of the
dates set forth in clauses (A) and (B) of this clause (iv), and (v) if the
Executive’s employment is terminated by reason of death or Disability, the Date
of Termination shall be the date of death of the Executive or the date on which
the Executive’s employment due to Disability is effective for purposes of the
applicable long-term disability plan of the Firm.  The Firm and the
Executive shall take all steps necessary (including with regard to any
post-termination services by the Executive) to ensure that any termination of
the Executive’s employment described in the Agreement, including Schedule I,
constitutes a “separation from service” within the meaning of Section 409A of
the Code, and notwithstanding anything contained herein to the contrary, the
date on which such separation from service takes place shall be the “Date of
Termination.”

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

                          
“Good Reason”
shall mean (i) the assignment to the Executive of any duties inconsistent in any
material respect with the Executive’s position (including status, offices,
titles and reporting requirements), authority, duties or responsibilities as in
effect as of the Effective Date, or any other action by the Firm which results
in a material diminution in such position, authority, duties or responsibilities
from the level in effect as of the Effective Date, (ii) a material breach by the
Firm of the terms of this Agreement, including, without limitation, any material
failure by the Firm to comply with paragraph 2 of this Schedule, or (iii) any
requirement that the Executive’s principal place of employment be relocated to a
location that increases the Executive’s commute from his primary residence by
more than 30 miles.  In the event of a termination for Good Reason,
the notice requirements of Section 1 shall not apply.  Notwithstanding
the foregoing, a termination for Good Reason shall not have occurred unless (i)
the Executive gives written notice to Lazard of termination of employment within
ninety (90) days after the Executive first becomes aware of the occurrence of
the circumstances constituting Good Reason, specifying in reasonable detail the
circumstances constituting Good Reason, and Lazard has failed within thirty (30)
days after receipt of such notice to cure the circumstances constituting Good
Reason, and (ii) the Executive’s “separation from service” (within the meaning
of Section 409A of the Code) occurs no later than two years following the
initial existence of one or more of the circumstances giving rise to Good
Reason.

     

          
“Severance
Multiple” shall equal (i) two (2), if the Date of Termination occurs
prior to a Change of Control or (ii) three (3), if the Date of Termination
occurs on or following the date of a Change of Control.

     

          
5.           Excise
Tax.  In the event it shall be determined that any payment,
benefit, or distribution by the Firm to or for the benefit of the Executive
(whether paid or payable or distributed or distributable pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this paragraph) (a “Payment”) would be
subject to the excise tax imposed by Section 4999 of the Code or any interest or
penalties are incurred by the Executive with respect to such excise tax (such
excise tax, together with any such interest and penalties, are hereinafter
collectively referred to as the “Excise Tax”), then
the Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) in
an amount such that after payment by the Executive of all taxes (including any
interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with
respect thereto) and Excise Tax imposed upon the Gross-Up Payment, but excluding
any income taxes and penalties imposed pursuant to Section 409A of the Code, the
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments.

     

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

     

            The Firm’s obligation
to make Gross-Up Payments under this paragraph 5 shall not be conditioned upon
the Executive’s termination of employment.  All determinations
required to be made under this paragraph, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions
to be utilized in arriving at such determination, shall be made by Deloitte
& Touche LLP or such other certified public accounting firm reasonably
acceptable to the Firm as may be designated by the Executive (the “Accounting Firm”),
which shall provide detailed supporting calculations both to Lazard and the
Executive within fifteen (15) business days of the receipt of notice from the
Executive that there has been a Payment, or such earlier time as is requested by
Lazard.  All fees and expenses of the Accounting Firm shall be borne
solely by the Firm.  Any Gross-Up Payment shall be paid by the Firm to
the Executive within five days of the later of (i) the due date for the payment
of any Excise Tax, and (ii) the receipt of the Accounting Firm’s
determination.  Any determination by the Accounting Firm shall be
binding upon the Firm and the Executive.  As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Firm should have been
made (“Underpayment”) or
that Gross-Up Payments which were made by the Firm should not have been made
(“Overpayment”).  In
the event that there occurs an Underpayment and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Firm to or for the benefit of the
Executive.  In the event that there occurs an Overpayment and the
Executive becomes entitled to receive any refund with respect to the Excise Tax,
the Executive shall promptly pay to the Firm the amount of such refund (together
with any interest paid or credited thereon after taxes applicable
thereto).

     

          
Any Gross-Up Payment, as determined pursuant to this paragraph 5, shall be paid
by the Firm to the Executive within five (5) days of the receipt of the
Accounting Firm’s determination; provided that, the
Gross-Up Payment shall in all events be paid no later than the end of the
Executive’s taxable year next following the Executive’s taxable year in which
the Excise Tax (and any income or other related taxes or interest or penalties
thereon) on a Payment is remitted to the Internal Revenue Service or any other
applicable taxing authority or, in the case of amounts relating to a claim from
the Internal Revenue Service or another tax authority that does not result in
the remittance of any federal, state, local and foreign income, excise, social
security and other taxes, the calendar year in which the claim is finally
settled or otherwise resolved.  Notwithstanding any other provision of
this paragraph 5, the Firm may, in its sole discretion, withhold and pay over to
the Internal Revenue Service or any other applicable taxing authority, for the
benefit of the Executive, all or any portion of any Gross-Up Payment, and the
Executive hereby consents to such withholding.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

     

            6.           Section
409A.  It is the intention of the parties that the payments and
benefits to which the Executive could become entitled in connection with
termination of employment under this Agreement comply with or are exempt from
the definition of “nonqualified deferred compensation” under Section 409A of the
Code.  In this regard, notwithstanding anything in this Agreement to
the contrary, all cash amounts that become payable under Section 3 of this
Schedule I on account of the Executive’s termination of employment shall be paid
no later than March 15 of the year following the year in which the Date of
Termination occurs.  In the event the parties determine that the terms
of this Agreement, including this Schedule I, do not comply with Section 409A,
they will negotiate reasonably and in good faith to amend the terms of this
Agreement and/or Schedule I such that they comply (in a manner that attempts to
minimize the economic impact of such amendment on the Executive and the Firm)
within the time period permitted by the applicable Treasury
Regulations.

     

            7.           Miscellaneous.

     

           
Section
12.  Section 12 of this Agreement is
hereby amended to replace all references to the New York Stock Exchange, Inc.”
and the “NYSE”
with references to the “Financial Industry Regulatory Authority” and “FINRA”, as
applicable.

     

           
Section
16(b).  Paragraphs 2, 3, 4, 5 and 6
of this Schedule I are hereby added to the list of Sections in Section 16(b) of
this Agreement.

     

                           
Section 16(f).  Section 16(f) of this
Agreement is hereby amended to add the following words at the end
thereof:  “, except to the extent such withholding or offset is not
permitted under Section 409A of the Code without the imposition of additional
taxes or penalties on the Executive.”

     

    

    
    

     

    
      	Initialed by the
      Executive: 	
               

            

    

     

    
      
        	Initialed by
      Lazard: 	
                 

              

      

       

      
        	Initialed by
      PubliCo: 	
                 

              

      

       

    
7

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