Exhibit
10.1


 


FORM OF RESTRICTED EQUITY UNIT AWARD AGREEMENT

OF

KKR & CO. L.P.


 


(Independent Directors)


 

















 


Table of Contents


 


	
  Contents

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I GRANT OF
  RESTRICTED EQUITY UNITS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
  Grant of Restricted Equity Units

  	
   

  	
  1

  
	
  Section 1.2.

  	
  REUs and Agreement Subject to Plan

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II SERVICE CONDITION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
  Classification of REUs

  	
   

  	
  1

  
	
  Section 2.2.

  	
  Service Condition

  	
   

  	
  1

  
	
  Section 2.3.

  	
  Terminated Participant

  	
   

  	
  2

  
	
  Section 2.4.

  	
  Satisfaction of Conditions; Consequence of Inability to
  Satisfy Conditions

  	
   

  	
  2

  
	
  Section 2.5.

  	
  Other Holders

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III SETTLEMENT

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
  Delivery Date

  	
   

  	
  3

  
	
  Section 3.2.

  	
  Delivery and Payment

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV DISTRIBUTION
  EQUIVALENT RIGHTS

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
  DER Payments Generally

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V TRANSFERS;
  EXCHANGES

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
  Transfers of REUs

  	
   

  	
  4

  
	
  Section 5.2.

  	
  Encumbrances

  	
   

  	
  5

  
	
  Section 5.3.

  	
  Further Restrictions

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI MISCELLANEOUS

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
  Governing Law

  	
   

  	
  6

  
	
  Section 6.2.

  	
  Arbitration

  	
   

  	
  6

  
	
  Section 6.3.

  	
  Cumulative Remedies

  	
   

  	
  7

  
	
  Section 6.4.

  	
  Amendments and Waivers

  	
   

  	
  7

  
	
  Section 6.5.

  	
  Withholding

  	
   

  	
  8

  
	
  Section 6.6.

  	
  Notices

  	
   

  	
  8

  
	
  Section 6.7.

  	
  Entire Agreement; Termination of Agreement; Survival

  	
   

  	
  8

  
	
  Section 6.8.

  	
  Severability

  	
   

  	
  9

  
	
  Section 6.9.

  	
  Binding Effect

  	
   

  	
  9

  
	
  Section 6.10.

  	
  No Third Party Beneficiaries

  	
   

  	
  9

  
	
  Section 6.11.

  	
  Further Assurances

  	
   

  	
  9

  
	
  Section 6.12.

  	
  Interpretation; Defined Terms; Section 409A

  	
   

  	
  9

  
	
  Section 6.13.

  	
  Headings

  	
   

  	
  10

  
	
  Section 6.14.

  	
  Counterparts

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  APPENDIX
  A DEFINITIONS

  	
   

  	
  A-1

  



 

















 


FORM OF RESTRICTED EQUITY UNIT AWARD AGREEMENT

OF

KKR & CO. L.P. 2010 EQUITY INCENTIVE PLAN


 


This
RESTRICTED EQUITY UNIT AWARD AGREEMENT
of KKR & CO. L.P. (the “Partnership”) is made as of the date specified under the
signature of the Grantee on the signature page hereto, by and between the
Partnership and the undersigned (the “Director”), who
provides services to KKR Management LLC, as general partner of the
Partnership.  Capitalized terms used
herein and not otherwise defined herein or in the KKR & Co. L.P. 2010
Equity Incentive Plan, as amended from time to time (the “Plan”),
shall be as defined in Appendix A attached hereto.


 


RECITALS


 


Whereas, KKR Management LLC, as general partner of the Partnership,
has determined it is in the best interests of the Partnership to provide the
Director with this Restricted Equity Unit Award Agreement (the “Agreement”) pursuant to and in accordance with the terms of
the Plan.


 


Now,
Therefore, in consideration of the mutual promises and
agreements herein made and intending to be legally bound hereby, the parties
hereto agree to the following:


 


ARTICLE I

GRANT OF RESTRICTED EQUITY UNITS


 


Section 1.1.           Grant of Restricted Equity Units


 


The
Partnership hereby grants to the Director (the “Grantee”),
effective as of the date specified as the Grant Date on the REU Grant Schedule
(the “Grant Date”), the number of Restricted
Equity Units set forth on the REU Grant Schedule, subject to the terms and
conditions of this Agreement. The Restricted Equity Units that are granted
pursuant to this Agreement, and designated as “REUs” in the REU Grant Schedule,
are collectively referred to as the “REUs.”


 


Section 1.2.           REUs and Agreement Subject to Plan


 


This
Agreement and the grant of REUs provided for herein shall be subject to the
provisions of the Plan, except that if there are any express differences or
inconsistencies between the provisions of the Plan and this Agreement, the
provisions of this Agreement shall govern.


 


ARTICLE II

SERVICE CONDITION


 


Section 2.1.           Classification of REUs


 


The
REUs shall be subject to the Service Condition. In order for an REU to be
Settled, the Service Condition that is applicable to such REU must be satisfied
or waived in accordance with the Plan and this Agreement.


 


Section 2.2.           Service Condition


 


(a)           Each REU shall be subject to the conditions set forth in this Section 2.2
(the “Service Condition”).  Unless previously satisfied or otherwise
waived, the 


 


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Service Condition shall be
satisfied with respect to an REU of the Grantee on the earlier to occur of the
Service Vesting Date for such REU or the date on which a Change in Control
occurs, provided in each case that the Grantee is not a Terminated Participant
as determined under Section 2.3(a).


 


(b)           If the Grantee becomes a Terminated Participant due to death or
Disability, the Service Condition shall be deemed to be satisfied on the
Termination Date with respect to all REUs of the Grantee as to which the
Service Condition has not previously been satisfied or otherwise waived.


 


(c)           If the Grantee becomes a Terminated Participant other than due to death
or Disability, the Service Condition shall be deemed to be incapable of being
satisfied with respect to any REUs of the Grantee as to which the Service
Condition has not previously been satisfied or otherwise waived.


 


(d)           To the extent that the Service Condition is deemed to be incapable of
being satisfied with respect to any REU, such REU shall immediately cease to be
held by the Grantee pursuant to Section 2.4(b).


 


Section 2.3.           Terminated Participant


 


(a)           The Grantee shall become a “Terminated Participant” upon the first to occur of (i) the death of the Director, (ii) the
separation from service due to the Disability of the Director, and (iii) the
termination of the Director’s service on the Board for any reason whatsoever,
regardless of whether such termination is voluntary or involuntary. To the
extent that any REU is held by a Person other than the Director (an “Other
Holder”), such Other Holder shall become a Terminated
Participant with respect to such REUs at the same time and for the same reason
that the Director becomes a Terminated Participant.


 


(b)           Upon becoming a Terminated Participant, the Grantee shall retain only
those REUs that the Grantee has not ceased to hold pursuant to Section 2.4(b),
and any such REUs that are retained shall remain subject to any Conditions that
have not been satisfied or otherwise waived. No Terminated Participant shall be
entitled to any payment, bonus or severance pay from the Partnership, other
than amounts deliverable to such Terminated Participant pursuant to Article III
or Article IV.


 


Section 2.4.           Satisfaction of Conditions; Consequence of
Inability to Satisfy Conditions


 


(a)           Any Condition that is satisfied or deemed to be satisfied with respect to
an REU of the Grantee pursuant to this Article II shall be deemed to be
irrevocably satisfied with respect to such REU from and after the time such
Condition is first satisfied or deemed to be satisfied under this Agreement,
regardless of whether the Grantee becomes a Terminated Participant.


 


(b)           To the extent that a Condition is at any time deemed to be incapable of
being satisfied with respect to an REU of the Grantee, the Grantee shall
immediately cease to hold such REU, without consideration, and from and after
such time the Grantee shall no longer have any rights with respect to such REU.


 


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Section 2.5.           Other Holders


 


If
an REU is held by an Other Holder, such Other Holder shall be bound by this
Agreement in the same manner and to the same extent as the Grantee is bound
hereby (or would be bound hereby had the Grantee continued to hold such REU)
and all references to “Grantee” that are included herein shall be deemed to
refer to such Other Holder. Any Transfer to an Other Holder must be undertaken
in compliance with Section 5.1. For the avoidance of doubt, any Condition
that is applicable to an REU held by an Other Holder shall be satisfied or
deemed to be satisfied under this Article II only to the extent that such
Condition would otherwise have been satisfied if the REU had not been
Transferred by the Director, and any REU that is held by an Other Holder shall
cease to be held by such Other Holder under this Article II if the REU
would have then ceased to be held by the Director had the REU not been
Transferred by the Director.


 


ARTICLE III

SETTLEMENT


 


Section 3.1.           Delivery Date


 


(a)           Provided that all Conditions applicable to an REU have been satisfied or
otherwise waived, such REU shall be Settled as soon as administratively
practicable following the Scheduled Settlement Date, but in no event earlier
than the first day of the next permissible trading window of Common Units that
opens for members of the Board and employees of the KKR Group to sell Common
Units, unless otherwise determined by the General Partner or its designee
(provided that in any event such Settlement shall not be later than the time
permitted under Section 409A if applicable). The date on which an REU is
to be Settled hereunder is referred to as the “Delivery
Date.” 
The Settlement of each REU shall be effected
in accordance with, and subject to the provisions of, Section 3.2.


 


(b)           Notwithstanding the foregoing and solely to the extent permitted under Section 409A,
if applicable, upon the occurrence of a Liquidation Event: (i) all Plan
Termination REUs of the Grantee shall be Settled, in accordance with, and
subject to the provisions of, Section 3.2; (ii) all other REUs of the
Grantee shall immediately cease to be held by the Grantee pursuant to Section 2.4(b);
and (iii) this Agreement shall be terminated.  For the purposes of this Section 3.1, “Plan Termination REUs” shall consist of any
REUs as to which the Service Condition had been satisfied immediately prior to
the occurrence of the Liquidation Event.


 


Section 3.2.           Delivery and Payment


 


(a)           On any Delivery Date, the General Partner shall cancel each REU that is
then being Settled in exchange for delivering, or causing to be delivered by
the Partnership, to the Grantee the number of Common Units equal to the number
of REUs that are Settled pursuant to Section 3.1.


 


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(b)           Notwithstanding the foregoing, no REU may be Settled by the Grantee
unless all Conditions applicable to such REU have been satisfied or waived
under this Agreement.


 


(c)           Subject to the provisions of this Article III relating to the number
of REUs that may be Settled on a Delivery Date and solely to the extent
permitted under Section 409A, if applicable, the General Partner may
impose such other conditions and procedures in relation to the Settlement of
REUs as it may determine in its sole discretion.


 


ARTICLE IV

DISTRIBUTION EQUIVALENT RIGHTS


 


Section 4.1.           DER Payments Generally


 


(a)           The REUs granted to the Grantee hereunder shall include the right to
receive distribution equivalent payments (“DER Payments”) in such amounts, at such times and in such circumstances as are
provided for in this Article IV.


 


(b)           To the extent that the Partnership makes any cash distributions to
holders of Common Units (whether in the form of ordinary or extraordinary
distributions), the General Partner shall cause there to be paid to the Grantee
a DER Payment in an amount, in cash, equal to the aggregate amount of such cash
distributions made by the Partnership on the number of Common Units that would
be deliverable to the Grantee if the REUs then held by the Grantee (whether or
not all Conditions applicable to such REUs have been satisfied at such time)
were Settled immediately prior to such distribution event.


 


(c)           In addition, to the extent that the Partnership makes any distributions
to holders of Common Units other than cash (whether in the form of ordinary or
extraordinary distributions), then to the extent the REUs will not otherwise be
adjusted pursuant to the terms of the Plan, the General Partner will consider
in good faith whether a DER Payment should be made with respect to such
non-cash distribution, if any, and may, in its sole discretion, cause there to
be delivered to the Grantee a DER Payment of all or a portion of such non-cash
distribution made by the Partnership on the number of Common Units that would
be deliverable to the Grantee if the REUs then held by the Grantee (whether or
not all Conditions applicable to such REUs have been satisfied at such time)
were Settled immediately prior to such distribution event.


 


ARTICLE V

TRANSFERS; EXCHANGES


 


Section 5.1.           Transfers of REUs


 


(a)           The Grantee may not Transfer all or any portion of the Grantee’s REUs
(including to any Other Holder) without the prior written consent of the
General Partner, which consent may be given or withheld, or made subject to
such conditions 


 


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(including the receipt of
such legal or tax opinions and other documents that the General Partner may
require) as are determined by the General Partner, in its sole discretion.  Prior to a Transfer of any REUs to any Other
Holder, the Other Holder must consent in writing to be bound by this Agreement
as an Other Holder and deliver such consent to the General Partner.  Any purported Transfer that is not in
accordance with this Agreement shall be null and void.


 


(b)           In the event of a property settlement or separation agreement between the
Grantee and his or her spouse, the Grantee agrees that he or she shall use
reasonable efforts to retain all of his or her REUs and shall reimburse his or
her spouse for any interest he or she may have under this Agreement out of
funds, assets or proceeds separate and distinct from his or her interest under
this Agreement.


 


Section 5.2.           Encumbrances


 


The
Grantee may not create an Encumbrance with respect to all or any portion of the
Grantee’s REUs unless the General Partner consents in writing thereto, which
consent may be given or withheld, or made subject to such conditions as are
determined by the General Partner, in the General Partner’s sole
discretion.  Any purported Encumbrance
that is not in accordance with this Agreement shall be null and void.  For purposes of this Section 5.2, “Encumbrance” means any mortgage, claim, lien, encumbrance,
conditional sales or other title retention agreement, right of first refusal,
preemptive right, pledge, option, charge, security interest or other similar
interest, easement, judgment or imperfection of title of any nature whatsoever.


 


Section 5.3.           Further Restrictions


 


Notwithstanding
any contrary provision in this Agreement, in no event may a Grantee Transfer
all or any portion of the Grantee’s REUs if:


 


(a)           such Transfer is made to any Person who lacks the legal right, power or
capacity to own such REU;


 


(b)           such Transfer would require the registration of such transferred
interests pursuant to any applicable U.S. federal or state securities laws
(including the U.S. Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder) or other foreign securities laws or would
constitute a non-exempt distribution pursuant to applicable securities laws;


 


(c)           such Transfer would cause any portion of the assets of the Partnership to
constitute assets of any employee benefit plan pursuant to the regulations
issued by the U.S. Department of Labor at Section 2510.3-101 of Part 2510
of Chapter XXV, Title 29 of the Code of Federal Regulations, or any successor
regulations;


 


(d)           such Transfer would cause any portion of the assets of the Partnership to
become “plan assets” of any benefit plan investor within the meaning of
regulations issued by the U.S. Department of Labor at Section 2510.3-101
of Part 2510 of Chapter XXV, Title 29 of the Code of Federal Regulations,
or any successor regulations, or to be regulated under the U.S. Employee
Retirement Income Security Act of 1974, as amended from time to time;


 


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(e)           in the sole discretion of the General Partner, such Transfer could cause
the Partnership to cease to be classified as a partnership for U.S. federal or
state income tax purposes;


 


(f)            such Transfer would subject the Partnership to regulation under the U.S.
Investment Company Act of 1940, as amended;


 


(g)           such Transfer would result in a violation of any applicable Law;


 


(h)           such Transfer would cause the revaluation or reassessment of the value of
any Partnership asset resulting in any foreign, federal, state or local tax
liability; or


 


(i)            to the extent requested by the General Partner, the Partnership does not
receive such legal and/or tax opinions and written instruments (including
copies of any instruments of Transfer and such Other Holder’s consent to be
bound by this Agreement as a Other Holder) that are in a form satisfactory to
the General Partner, as determined in the General Partner’s sole discretion.


 


ARTICLE VI

MISCELLANEOUS


 


Section 6.1.           Governing Law


 


This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York without giving effect to any otherwise governing
principles of conflicts of law that would apply the Laws of another
jurisdiction.


 


Section 6.2.           Arbitration


 


(a)           Any and all disputes which cannot be settled amicably, including any
ancillary claims of any party, arising out of, relating to or in connection
with the validity, negotiation, execution, interpretation, performance or
non-performance of this Agreement (including the validity, scope and
enforceability of this arbitration provision) shall be finally settled by
arbitration conducted by a single arbitrator in New York, New York in
accordance with the then-existing Rules of Arbitration of the
International Chamber of Commerce.  If
the parties to the dispute fail to agree on the selection of an arbitrator
within 30 days of the receipt of the request for arbitration, the International
Chamber of Commerce shall make the appointment. 
The arbitrator shall be a lawyer and shall conduct the proceedings in
the English language. Performance under this Agreement shall continue if
reasonably possible during any arbitration proceedings.  Except as required by Law or as may be
reasonably required in connection with ancillary judicial proceedings to compel
arbitration, to obtain temporary or preliminary judicial relief in aid of
arbitration, or to confirm or challenge an arbitration award, the arbitration
proceedings, including any hearings, shall be confidential, and the parties
shall not disclose any awards, any materials in the proceedings created for the
purpose of the arbitration, or any documents produced by another party in the
proceedings not otherwise in the public domain. Judgment on any award rendered
by an arbitration tribunal may be entered in any court having jurisdiction
thereover.


 


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(b)           Notwithstanding the provisions of clause (a) of this Section 6.2,
the General Partner may bring or may cause the Partnership to bring an action
or special proceeding in any court of competent jurisdiction for the purpose of
compelling the Grantee to arbitrate, seeking temporary or preliminary relief in
aid of an arbitration hereunder, or enforcing an arbitration award and, for the
purposes of this clause (b), the Grantee (i) expressly consents to the
application of clause (c)  of this Section 6.2 to any such action or
proceeding, (ii) agrees that proof shall not be required that monetary
damages for breach of the provisions of this Agreement would be difficult to
calculate and that remedies at law would be inadequate, and (iii) irrevocably
appoints the General Partner, Secretary or General Counsel of the Partnership
(or any officer of the Partnership) at the address identified for the
Partnership as set forth in Section 6.6 below as such Grantee’s agent for
service of process in connection with any such action or proceeding and agrees
that service of process upon such agent, who shall promptly advise such Grantee
of any such service of process, shall be deemed in every respect effective
service of process upon the Grantee in any such action or proceeding.


 


(c)           EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE FEDERAL
AND STATE COURTS LOCATED IN NEW YORK, NEW YORK FOR THE PURPOSE OF ANY JUDICIAL
PROCEEDING BROUGHT IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 6.2,
OR ANY JUDICIAL PROCEEDING ANCILLARY TO AN ARBITRATION OR CONTEMPLATED
ARBITRATION ARISING OUT OF OR RELATING TO OR CONCERNING THIS AGREEMENT.  Such ancillary judicial proceedings include
any suit, action or proceeding to compel arbitration, to obtain temporary or
preliminary judicial relief in aid of arbitration, or to confirm or challenge
an arbitration award.  The parties
acknowledge that the forums designated by this clause (c) have a
reasonable relation to this Agreement and to the parties’ relationship with one
another. The parties hereby waive, to the fullest extent permitted by
applicable Law, any objection which they now or hereafter may have to personal
jurisdiction or to the laying of venue of any such ancillary suit, action or
proceeding referred to in this Section 6.2 brought in any court referenced
therein and such parties agree not to plead or claim the same.


 


Section 6.3.           Cumulative Remedies


 


The
rights and remedies provided by this Agreement are cumulative and the use of
any one right or remedy by any party shall not preclude or waive its right to
use any or all other remedies.  Said
rights and remedies are given in addition to any other rights the parties may
have by Law.


 


Section 6.4.           Amendments and Waivers


 


(a)           This Agreement (including any Appendices and Schedules hereto) may be
amended, supplemented, waived or modified only in accordance with Section 13
of the Plan; provided, however, that the REU
Grant Schedule shall be deemed amended from time to time to reflect any
adjustments provided for under the Plan, the satisfaction of any Conditions
applicable to REUs and any adjustments resulting from Settlements and Transfers
of REUs, in each case that is made in accordance with the provisions of this
Agreement.


 


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(b)           No failure or delay by any party in exercising any right, power or
privilege hereunder (other than a failure or delay beyond a period of time
specified herein) shall operate as a waiver thereof nor shall any single or
partial exercise thereof preclude any other or further exercise thereof or the
exercise of any other right, power or privilege.  The rights and remedies herein provided shall
be cumulative and not exclusive of any rights or remedies provided by Law.


 


Section 6.5.           Withholding


 


Notwithstanding
anything herein to the contrary, the Grantee and any Other Holder, if
applicable, (i) shall be responsible for the payment of any applicable
federal, state, local or other taxes in connection with any payments or
deliveries made to the Grantee under this Agreement; or (ii) solely to the
extent required to comply with applicable Law, shall be permitted to satisfy
any obligations hereunder using a net settlement mechanism whereby the number
of Common Units paid or delivered to the Grantee or Other Holder under this
Agreement will be reduced by a number of Common Units having an equivalent Fair
Value to the payment that would otherwise be made by such Grantee or Other
Holder pursuant to clause (i) of this Section 6.5.


 


Section 6.6.           Notices


 


All
notices, requests, claims, demands and other communications hereunder shall be
in writing and shall be given (and shall be deemed to have been duly given upon
receipt) by delivery in person, by courier service, by fax or by registered or
certified mail (postage prepaid, return receipt requested) to the respective
parties at the following addresses (or at such other address for a party as
shall be specified as notice given in accordance with this Section 6.6):


 


(a)           If to the Partnership, to:


 


KKR & Co. L.P. 

9 West 57th Street, Suite 4200

New York, New York 10019 

Attention: Chief Financial Officer


 


(b)           If to the Grantee, to the most recent address provided by the Grantee to
the Partnership in writing.


 


Section 6.7.           Entire Agreement; Termination of Agreement;
Survival


 


(a)           This Agreement constitutes the entire agreement among the parties hereto
pertaining to the subject matter hereof and supersedes all prior agreements and
understandings, whether oral or written, pertaining thereto. The Director
acknowledges that the grant of REUs provided for under this Agreement is in
full satisfaction of any and all grants of equity or equity-based awards that
representatives of the General Partner, the Partnership or their respective
Affiliates, on or prior to the date hereof, may have informed the Director that
such Director is entitled to receive.


 


(b)           This Agreement shall terminate upon the earlier of (i) the first
date on which the Director and all Other Holders cease to hold any of the REUs
that have been granted hereunder and (ii) the date on which this Agreement
is terminated pursuant to Section 3.1(b). Notwithstanding anything to the
contrary herein, the provisions of this Article VI shall survive the
termination of this Agreement.


 


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Section 6.8.           Severability


 


If
any term or other provision of this Agreement is held to be invalid, illegal or
incapable of being enforced by any rule of Law, or public policy, all
other conditions and provisions of this Agreement shall nevertheless remain in
full force and effect so long as the economic or legal substance of the
transactions is not affected in any manner materially adverse to any
party.  Upon a determination that any
term or other provision is invalid, illegal or incapable of being enforced, the
parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible in a mutually
acceptable manner in order that the transactions contemplated hereby be
consummated as originally contemplated to the fullest extent possible.


 


Section 6.9.           Binding Effect


 


This
Agreement shall be binding upon and inure to the benefit of all of the parties
and, to the extent permitted by this Agreement, their successors, executors,
administrators, heirs, legal representatives and assigns.


 


Section 6.10.        No Third Party Beneficiaries


 


This
Agreement shall be binding upon and inure solely to the benefit of the parties
hereto and their permitted assigns and successors and nothing herein, express
or implied, is intended to or shall confer upon any other Person or entity, any
legal or equitable right, benefit or remedy of any nature whatsoever under or
by reason of this Agreement.


 


Section 6.11.        Further Assurances


 


The
Grantee shall perform all other acts and execute and deliver all other
documents as may be necessary or appropriate to carry out the purposes and
intent of this Agreement.


 


Section 6.12.        Interpretation; Defined Terms; Section 409A


 


(a)           Throughout this Agreement, nouns, pronouns and verbs shall be construed
as masculine, feminine, neuter, singular or plural, whichever shall be
applicable.  Unless otherwise specified,
all references herein to “Articles,” “Sections” and clauses shall refer to
corresponding provisions of this Agreement. 
The word “including” is not meant to be exclusive, but rather shall mean
“including without limitation” wherever used in this Agreement.  Reference to “hereto”, “herein” and similar
words is to this entire Agreement (including any Appendices) and not a
particular sentence or section of this Agreement. All references to “date” and “time”
shall mean the applicable date (other than a Saturday or Sunday or any day on
which the Federal Reserve Bank of New York is closed or any day on which banks
in the city of New York, New York are required to close, in which case such
date refers to the next occurring date that is not described in this
parenthetical) or time in New York, New York.


 


(b)           With respect to any capitalized terms defined herein, the use of any
particular terminology used to identify any such term in this Agreement is used
solely for the administrative convenience of the General Partner, and shall not
be 


 


9

















 


construed to provide any
additional meaning to such term not otherwise expressly contained in the
definition of such term.


 


(c)           All references to any “separation from service” or termination of the
engagement of, or the services to be provided by, the Director, shall be deemed
to refer to a “separation from service” within the meaning of Section 409A,
if applicable. For the avoidance of doubt, each party acknowledges that an REU
shall cease to be subject to a substantial risk of forfeiture for the purposes
of Section 409A, if applicable, only upon the satisfaction of any Service
Condition that is applicable to such REU.


 


(d)           For the avoidance of doubt, any references to the engagement or provision
of services by the Director under this Agreement refer solely to the provision
of services by the Director to the Partnership.


 


Section 6.13.        Headings


 


The
headings and subheadings in this Agreement are included for convenience and
identification only and are in no way intended to describe, interpret, define
or limit the scope, extent or intent of this Agreement or any provision hereof.


 


Section 6.14.        Counterparts


 


This
Agreement may be executed and delivered (including by facsimile transmission)
in one or more counterparts, and by the different parties hereto in separate
counterparts, each of which when executed and delivered shall be deemed to be
an original but all of which taken together shall constitute one and the same
agreement.  Copies of executed
counterparts transmitted by telecopy or other electronic transmission service
shall be considered original executed counterparts for purposes of this
Agreement.


 


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In
Witness Whereof, the parties hereto have executed this Agreement as
of the date specified under the signature of the Grantee.


 


	
  KKR &
  CO. L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   KKR MANAGEMENT LLC

  	
   

  
	
   

  	
   its general partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  William
  J. Janetschek

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  



 


Restricted Equity Unit Award Agreement


 


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RESTRICTED EQUITY UNIT AWARD
AGREEMENT OF KKR & CO. L.P.


 


In Witness Whereof, the undersigned Grantee
has caused this counterpart signature page to the Restricted Equity Unit
Award Agreement of KKR & CO. L.P. to be duly executed on  the date specified under the
signature of the Grantee.


 


	
  “GRANTEE”

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
			



 


Restricted Equity Unit Award Agreement


 


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APPENDIX A

DEFINITIONS


 


In
addition to the defined terms set forth in the preamble and recitals of the
Agreement, as well as the defined terms set forth in the Plan, the following
terms shall have the following meanings for purposes of the Agreement:


 


“Act” has the meaning set forth in the Plan.


 


“Affiliate” has the meaning set forth in the Plan.


 


“Agreement” has the meaning set forth in the Recitals.


 


“Board” has the meaning set forth in the Plan.


 


“Cash Payment” has the meaning set forth in Section 3.2(a).


 


“Change in Control” has the meaning set forth in the Plan.


 


“Code” has the meaning set forth in the Plan.


 


“Common Units” has the meaning set forth in the Plan.


 


“Condition” means the Service Condition.


 


“Delivery Date” has the meaning set forth in Section 3.1(a).


 


“DER Payments” has the meaning set forth in Section 4.1(a).


 


“Director” has the meaning set forth in the preamble of the
Agreement.


 


“Disability” means, as to
any Person, such Person’s inability to perform in all material respects such
Person’s duties and responsibilities to the Partnership by reason of a physical
or mental disability or infirmity which inability is reasonably expected to be
permanent and has continued (i) for a period of six consecutive months or (ii) such
shorter period as the General Partner may reasonably determine in good faith.


 


“Encumbrance” has the meaning set forth in Section 5.2.


 


“Fair Value” has the meaning set forth in the Plan.


 


“General Partner” has the meaning set forth in the Plan.


 


“Grant Date” has the meaning set forth in Section 1.1.


 


“Grantee” has the meaning set forth in Section 1.1.


 


“Group Partnership Units” has the meaning set forth in the
Plan.


 


“KKR Group” has the meaning set forth in the Plan.


 


“Law” has the meaning set forth in the Plan.


 


“Liquidation Event” means the dissolution of the Partnership
in anticipation of the completion of the winding up of the affairs of the
Partnership, unless, immediately prior such completion, the Partnership assigns
its rights and obligations under this Agreement to a Person that holds,
directly or indirectly, Group Partnership Units, Common Units or a combination
of the foregoing in an amount sufficient to satisfy all obligations to deliver
Common Units hereunder.


 


“Other Holder” has the meaning set forth in Section 2.3(a).


 


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“Partner” has the meaning set forth in the Plan.


 


“Partnership” has the meaning set forth in the preamble of
the Agreement.


 


“Permitted Person” has the meaning set forth in the Plan.


 


“Person” has the meaning set forth in the Plan.


 


“Plan” has the meaning  set forth in
the preamble of the Agreement.


 


“Plan Termination REUs” has the meaning
given to such term in Section 3.1(b).


 


“Restricted Equity Units” means, on a one-for-one basis,
phantom Common Units.


 


“REU” has the meaning set forth in Section 1.1.


 


“REU Grant Schedule” means the REU Grant Schedule delivered
to the Director as attached to this Agreement.


 


“Scheduled Settlement Date” means, with respect to an REU, the later of (i) the date set forth
in the REU Grant Schedule under the column “Scheduled Settlement Date” for such REU and (ii) the date on which all Conditions applicable
to such REU have been satisfied or waived.


 


“Section 409A” means Section 409A of the Code, as
the same may be amended from time to time, and the applicable regulations,
including temporary regulations, promulgated under such Section, as such
regulations may be amended from time to time (including corresponding
provisions of succeeding regulations).


 


“Service Condition” has the meaning set forth in Section 2.2(a).


 


“Service Vesting Date” means, with respect to any REU, the
date set forth in the REU Grant Schedule under the column “Service Vesting
Date.”


 


“Settle” or “Settlement”
means the discharge of the Partnership’s obligations in respect of an REU
through the delivery to the Grantee of (i) Common Units in a Phantom
Exchange Transaction or (ii) a Cash Payment in accordance with Article III.


 


“Terminated Participant” has the meaning set forth Section 2.3(a).


 


“Termination Date” means the date on which the Grantee
becomes a Terminated Participant.


 


“Transfer” means (i) with respect to any REU, any sale,
assignment, transfer or other disposition of such REU or any interests in or
rights attached to such REU, whether voluntarily or by operation of Law; and (ii) with
respect to any Common Unit, any sale, assignment, transfer or other disposition
of such Common Unit or any interests in or rights attached to such Common Unit,
whether voluntarily or by operation of Law.


 


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