Document:

Exhibit 10.20 2014 10K

Exhibit 10.20

FORM OF
GRANT AGREEMENT
UNDER THE 
OAKTREE CAPITAL GROUP, LLC
2011 EQUITY INCENTIVE PLAN

This GRANT AGREEMENT (as may be amended, modified, supplemented or restated from time to time, this “Agreement”) is effective as of [         ] (the “Effective Date”), by and among OAKTREE CAPITAL GROUP HOLDINGS, L.P., a Delaware limited partnership (the “Partnership”), OAKTREE CAPITAL GROUP HOLDINGS GP, LLC, a Delaware limited liability company (in its capacity as the general partner of the Partnership, the “General Partner”), and you (the “Participant”).  Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Oaktree Capital Group, LLC 2011 Equity Incentive Plan (the “Plan”) and the Fourth Amended and Restated Limited Partnership Agreement of the Partnership, dated as of January 1, 2014 (as amended, modified, supplemented or restated from time to time, the “Partnership Agreement”), as applicable.  This Agreement shall be deemed executed, accepted and agreed to by all parties hereto upon the Participant’s acceptance of this Agreement by clicking on the “Accept” button related to this Award in the Oaktree equity portal established to facilitate the grant of Awards under the Plan (the “Oaktree Equity Portal”).
Recitals
WHEREAS, the Plan was adopted for purposes of promoting the long-term financial interests and growth of the Oaktree Group by, among other things, providing select investment professionals, employees, directors, consultants and advisors of the Oaktree Group with equity-based awards based upon Units (as defined under the Plan); and
WHEREAS, either the Committee authorized to administer the Plan by the Board or the Board has approved the grant and issuance of the Granted Units (as defined below) to the Participant pursuant to the Plan, subject to the terms and conditions of the Grant Documents (as defined below).
NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the parties hereto, intending to be legally bound, hereby agree as follows:
Agreement
1.Grant of Units.  Subject to the terms and conditions of this Agreement, the Partnership Agreement and the other Grant Documents:
(a)    the Partnership hereby grants and issues to the Participant, and the Participant hereby accepts and receives from the Partnership, the number of Units of the Partnership specified for the Participant on the Oaktree Equity Portal related to this specific Award under the column “Units Awarded” (the “Granted Units”), which Granted Units shall have an aggregate Award Value specified on the Oaktree Equity Portal related to this specific Award;
(b)    if the Participant is not already a Limited Partner, then the Participant is hereby admitted as a Limited Partner, and each of the General Partner, the Partnership and the Participant hereby consents to such admission;

(c)    the Participant hereby acknowledges that he or she has received and has reviewed carefully a copy of (i) the Partnership Agreement, (ii) the Exchange Agreement, (iii) the Tax Receivable Agreement, (iv) the Plan, and (v) each other agreement, instrument or document required by any Oaktree Group Member to be executed and delivered by the Participant in connection with the transactions contemplated by this Agreement (collectively, including the Partnership Agreement, the Exchange Agreement, the Tax Receivable Agreement, and the Plan, as each such document may be amended, modified, supplemented or restated in accordance with its respective terms from time to time, the “Grant Documents”);
(d)    if the Participant is not already a party to the Partnership Agreement, the Exchange Agreement and the Tax Receivable Agreement, then the Participant hereby joins as a party to, and agrees to be bound by each and every provision of, the Partnership Agreement, the Exchange Agreement and the Tax Receivable Agreement; and
(e)    for the avoidance of doubt, the Participant shall not be entitled to receive quarterly distributions, if any, from the Partnership with respect to the Granted Units that are attributable to the fourth quarter of 2014 paid by the Partnership to its Limited Partners during the first quarter of 2015.   
2.    Vesting of Units.  Each Granted Unit shall be unvested as of the Effective Date.  [Insert specific vesting language depending on vesting schedule for Participant].  
3.    Forfeiture of Units.  [For four-year vesting grants, this section will generally be omitted.][For all other grants, the following language will be included: Notwithstanding anything to the contrary contained in Section 4.5 of the Partnership Agreement, the Participant hereby agrees that if the Participant ceases to provide services to the Oaktree Group (other than as a result of his or her Incapacitation), for any reason or no reason at all (including a termination of such services by any Oaktree Group Member without Cause), then all unvested Granted Units of the Participant hereunder shall be immediately and automatically forfeited on the effective date the Participant ceases to provide services to the Oaktree Group without any further action by any parties hereto.  For the avoidance of doubt, Section 4.4(d)(iii) of the Partnership Agreement shall not apply to the Granted Units.]
4.     Participant’s Obligation to Pay Taxes.  
(a)    The Participant shall be responsible for any and all taxes relating to the Granted Units, including amounts due upon the vesting of any Granted Units or relating to allocations of income with respect to the Granted Units.  Without limiting Section 7.8 of the Partnership Agreement and Section 15(c) of the Plan, the Participant hereby agrees that the Partnership has the right to require reimbursement from the Participant of any such taxes that are paid by the Partnership and to deduct any such taxes from any payment of any kind otherwise due to the Participant, including as necessary to satisfy any foreign, U.S. federal, state or local withholding tax requirements and from payments receivable by the Participant under the Grant Documents.  As security for the full, prompt and complete payment and performance when due of all of the Participant’s obligations under this Paragraph 4 (including its obligation to reimburse the Partnership for any such taxes that are paid by the Partnership), the Participant hereby unconditionally and irrevocably grants to the Partnership a security interest in the Granted Units and on all proceeds directly or indirectly receivable by the Partnership in respect of the Granted Units (including any distributions by the Partnership to the Participant in respect of the Granted Units and any proceeds receivable by the Participant in connection with the sale of the Granted Units).  The Participant shall take such actions as the Partnership may 

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request from time to time to perfect or enforce such security interest and to otherwise maintain such security interest as a first priority lien in favor of the Partnership.
(b)    Without limiting the generality of clause (a) above, the General Partner may, in its sole and absolute discretion, permit the Participant to satisfy, in whole or in part, the foregoing withholding liability by (i) the delivery of Mature Units, of the same type of Units as are subject to this Agreement, owned by the Participant having a Fair Market Value equal to such withholding liability and any follow-on tax obligations incurred as a result of the disposition of such Mature Units (with all tax calculations to be undertaken by the General Partner in good faith and in its sole and absolute discretion) to Oaktree Capital Group, LLC, a Delaware limited liability company (“OCG”), or any of its subsidiaries on behalf of the Partnership, as applicable or (ii) having OCG or any of its subsidiaries, or OCG or any of its subsidiaries on behalf of the Partnership, as applicable, deliver in settlement of the Granted Units the number of vested Granted Units less a number of Units with a Fair Market Value equal to such withholding liability (but no more than the minimum required statutory withholding liability); provided, that the mechanisms described in the foregoing clauses (i) and (ii) shall only be available if and to the extent the Participant has notified the General Partner of his or her desire to use either mechanism within such time period as the General Partner may require from time to time before the date on which the applicable Granted Units become vested Granted Units.
5.    Certain Representations, Warranties, Covenants and Agreements.  As an essential inducement to the Partnership to grant and issue the Granted Units to the Participant, the Participant hereby represents and warrants to the Oaktree Group as follows:
(a)    Authority and Capacity.  The Participant has the legal capacity to agree to, execute and deliver each Grant Document and to perform all of his or her obligations thereunder.  The Participant is deemed to have duly executed and delivered this Agreement upon accepting its terms on the Oaktree Equity Portal, and each Grant Document constitutes the legal, valid and binding obligation of the Participant, enforceable against the Participant in accordance with their respective terms.
(b)    No Conflict; Satisfaction of Conditions to Membership Transactions.  Neither the execution, acceptance and delivery by the Participant of any Grant Document, nor the performance by the Participant of his or her obligations thereunder, violates, conflicts with or constitutes a default or breach under, or will violate, conflict with or constitute a default or breach under any applicable law or any contract, indenture, agreement, instrument or mortgage binding on the Participant or any of his or her properties.  To the best knowledge of the Participant, neither the grant and issuance of the Granted Units to the Participant, nor the ownership by the Participant of the Granted Units, nor the status of the Participant as a Limited Partner:
		
	(i)
	would reasonably be expected to result in the violation by the Partnership, the General Partner or any other Oaktree Related Person (as defined below) of any applicable law, including any applicable U.S. federal or state securities laws;

		
	(ii)
	would reasonably be expected to terminate the existence or qualification of the Partnership under the laws of any jurisdiction;

		
	(iii)
	would reasonably be expected to cause the Partnership to be treated as an association taxable as a corporation or otherwise to be taxed as an entity for 

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U.S. federal income tax purposes (to the extent not already so treated or taxed); or
		
	(iv)
	would reasonably be expected to subject the Partnership, the General Partner or any other Oaktree Related Person to any material regulatory requirement to which it, he or she otherwise would not be subject, including any requirement that the Partnership register as an investment company under the Investment Company Act or as a result of all or any portion of the Partnership’s assets becoming or being deemed to be “plan assets” for purposes of ERISA.

(c)    Suitability.  The Participant meets all suitability standards or eligibility requirements imposed by the jurisdiction of his or her residence for his or her acquisition of the Granted Units pursuant to the Grant Documents.  The Participant has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of an investment in the Granted Units and protecting his or her own interests in connection with such investment.
(d)    Access to Information.  The Participant (i) has been provided with ample opportunity to discuss each Grant Document, the Granted Units and the Oaktree Business (as defined below) with the General Partner and to ask the General Partner such questions regarding each Grant Document, the Granted Units and the Oaktree Business, and to receive such answers to such questions and such other information, as the Participant deems necessary, appropriate or advisable, and (ii) has been provided with ample opportunity to consult with such legal, tax, financial and other advisors of the Participant regarding each Grant Document, the Granted Units and the Oaktree Business as the Participant deems necessary, appropriate or advisable.  The Participant has a preexisting personal and business relationship with the senior executives of the Oaktree Group, and such personal and business relationship is of a nature and duration so as to enable the Participant to be aware of their character, business acumen and general business and financial circumstances.
(e)    Independent Investment Decision.  The Participant is relying on his or her own independent investigation and the information contained in the Grant Documents, and the Participant is not relying on any Person (other than his or her own legal, tax, financial and other advisors) or any representation or warranty made by any Oaktree Related Person, in each case, in deciding to own and hold the Granted Units.  Without limiting the foregoing, no representation or warranty has been made to the Participant by any Oaktree Related Person as to the existing value or the future performance of the Oaktree Business.
(f)    Investment Intent.  The Participant will own and hold the Granted Units for his or her own account, as a principal, for investment purposes only, and not with a view to, or for, resale or distribution, in whole or in part.  No other Person has a direct or indirect beneficial interest in the Granted Units (other than, if the Participant is a married natural person acquiring the Granted Units as community property, the community property interest of the Participant’s spouse).  The Participant is not acting as an agent, representative, intermediary or nominee, or in any similar capacity, for or on behalf of any other Person with respect to any Granted Units.
(g)    Restricted Securities.  The Participant understands that the grant and issuance hereunder of the Granted Units are intended to be exempt from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”), state securities laws and other applicable foreign or domestic securities laws.  The Participant further understands that the Granted Units have not been recommended or endorsed by the U.S. Securities and Exchange Commission, any state securities commission or any other foreign or domestic governmental authority.  No Transfer of the Granted 

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Units will be made by the Participant except for Transfers that comply with all applicable laws, including the Securities Act, and the provisions of the Grant Documents, including the restrictions on Transfer set forth in Section 4.6 of the Partnership Agreement.  Although the Grant Documents contemplate that the Participant may be able to monetize vested Granted Units pursuant to Article VI of the Partnership Agreement and the provisions of the Exchange Agreement, the Participant understands that there is no assurance that (i) the Participant will actually be able to monetize, Transfer or otherwise realize value from such Granted Units and (ii) any such monetization, Transfer or other realization will be at a price or upon terms and conditions that are satisfactory to the Participant.  The Participant further understands that Oaktree Group is under no obligation to ensure (i) that any Issuer Equity will continue to be tradable on the New York Stock Exchange or any other national securities exchange or market or trading platform or (ii) that other avenues of liquidity will be made available to the Participant with respect to the Granted Units.  The Participant is able and willing to bear, and has the financial ability to bear, the economic and other risks of his or her ownership in the Granted Units for an indefinite period of time.  The Participant has no need for liquidity with respect to the Granted Units.  
(h)    Accredited Investor.  The Participant is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act.  Without limiting the foregoing, the Participant is a natural person, who (i) has a net worth individually or jointly with his or her spouse that exceeds $1,000,000 at the time of the grant and issuance of the Granted Units (excluding the value of the Participant’s primary residence and the related amount of indebtedness secured by the primary residence up to the fair market value of the residence but including as a liability any indebtedness secured by such residence in excess of the fair market value of such residence) or (ii) had annual income in excess of $200,000 in each of the two most recent calendar years (e.g., if the current calendar year is 2015, then in each of 2014 and 2013) and reasonably expects to have income in excess of $200,000 in the current calendar year; or (iii) had annual income jointly with his or her spouse in excess of $300,000 in each of the two most recent calendar years (e.g., if the current calendar year is 2015, then in each of 2014 and 2013) and reasonably expects to have joint income in excess of $300,000 in the current calendar year.
(i)    Tax Consequences.  The Participant understands that his or her ownership of the Granted Units may cause him or her adverse tax consequences, including the realization of taxable income without receiving cash distributions to pay the required tax thereon.  For example, the Participant may be taxed upon the vesting of the Granted Units on the value of the vesting Granted Units.  Moreover, although it is contemplated that the Partnership will make cash distributions in respect of the Granted Units from time to time, the Participant understands that there is no obligation for the Partnership to make any distribution (including tax distributions) to its Limited Partners (including the Participant).  The Participant further understands that even if the Partnership were to make cash distributions from time to time, there is no assurance that such cash distributions will be made in sufficient amounts or at an opportune time so as to enable the Participant to pay in a timely manner any taxes that the Participant may be required to pay in respect of the Granted Units.  The Participant has sufficient liquid resources to pay all taxes that the Participant may be required to pay in respect of the Granted Units, including all taxes arising from the vesting of the Granted Units or allocations of taxable income of the Partnership to the Participant with respect to the Granted Units.  The Participant has reviewed his or her investment in the Granted Units with his or her tax advisors and has not received or relied upon any tax advice from any Oaktree Related Person.  No Oaktree Related Person has made any representation or warranty (and shall not otherwise be liable to the Participant) as to the tax treatment of vesting, allocations or distributions with respect to the Granted Units under applicable law.

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(j)    IRS 83(b) Election for non-U.S. Citizens.  If the Participant is not a citizen or permanent resident of the United States, the Participant hereby (i) agrees that, no later than 30 calendar days after the Effective Date, he or she will (A) file an election under Section 83(b) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), with respect to the Granted Units and (B) provide a copy of such election to the Chief Financial Officer of Oaktree Capital Management, L.P. or his designee, and (ii) confirms and acknowledges that he or she has filed an election under Section 83(b) of the Code with respect to any other units of the Partnership previously granted to the Participant prior to the Effective Date.
(k)    Understanding of Grant Documents.  The Participant understands each provision of each Grant Document and the terms and conditions of the Granted Units.  Without limiting the foregoing, the Participant understands that:
		
	(i)
	the Participant has irrevocably constituted and appointed each of the Partnership, the General Partner, their respective authorized officers and attorneys-in-fact, and the members of the General Partner with full power of substitution, as the true and lawful attorney-in-fact and agent of the Participant as set forth in Section 3.9 of the Partnership Agreement for the purposes set forth therein;

		
	(ii)
	the Partnership Agreement permits the Partnership to issue, at any time and from time to time, without the approval of the Participant or the need to notify the Participant, additional Units on such terms and conditions as the General Partner may determine, including Units that may be senior or superior to, or of a different class from, the Granted Units;

		
	(iii)
	the Participant does not have any preemptive rights, right of first refusal, right of first offer or other right of participation with respect to any issuances of any Units, and such issuances are expected to have a dilutive effect on the Participant’s interest in the Partnership;

		
	(iv)
	amounts distributable to the Participant in respect of the Granted Units are subject to withholding pursuant to Section 7.8 of the Partnership Agreement; and

		
	(v)
	the Participant is subject to certain minimum retained ownership requirements with respect to the Participant’s ability to exchange or sell any Granted Units that have become Exchangeable Units as set forth in Section 6.1(a)(v) of the Partnership Agreement; and  

		
	(vi)
	the Participant, as a Service Partner, is subject to the protective covenants set forth in Article X of the Partnership Agreement, which includes covenants and prohibitions to which the Participant will continue to be bound after the Participant ceases to provide services to the Oaktree Group.

The Participant has given careful consideration to all of the provisions of the Grant Documents.  For the avoidance of doubt, and without limiting the immediately preceding sentence, the Participant (x) has given careful consideration to the restraints imposed upon him or her under the Grant Documents, including under Articles IV and X of the Partnership Agreement, (y) is in full accord as to the necessity 

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of such provisions, and (z) understands that his or her agreement to be bound by each such provision is an essential inducement to the Partnership to grant and issue the Granted Units to the Participant.
If the Participant becomes aware that any representation or warranty made by him or her in any Grant Document would be incorrect in any material respect if such representation or warranty were to be made as of any subsequent date, or that the Participant is unable fulfill or perform in any material respect any of his or her covenants or agreements in any Grant Document, the Participant shall promptly notify the General Partner of such inaccuracy or inability.
6.    Incorporation of Partnership Agreement Provisions.  The provisions of Article XII of the Partnership Agreement (other than Section 12.3 of the Partnership Agreement) are hereby incorporated herein by reference and shall apply mutatis mutandis to this Agreement.  Without limiting the foregoing:
(a)    any and all disputes, claims or controversies arising out of or relating to this Agreement shall be resolved pursuant to Section 12.1 of the Partnership Agreement;
(b)    this Agreement may be amended, modified, or waived with the written consent of the General Partner; provided that if any such amendment, modification, or waiver would adversely affect the Participant in any material respect, such amendment, modification, or waiver shall also require the written consent of the Participant; provided further that, for the avoidance of doubt, the Partnership Agreement may be amended, modified and waived pursuant to Section 12.5 of the Partnership Agreement, and the Plan may be amended, modified and waived pursuant to Section 14(a) of the Plan, and, in each case, no such amendment, modification or waiver shall be deemed to be an amendment, modification or waiver of this Agreement;
(c)    any notice that is required or permitted hereunder to be given to any party hereto shall be given pursuant to Section 12.6 of the Partnership Agreement; and
(d)    in accordance with Section 12.9 of the Partnership Agreement, this Agreement shall be construed and enforced, along with any rights, remedies, or obligations provided for hereunder, in accordance with the laws of the State of Delaware applicable to contracts made and to be performed entirely within the State of Delaware by residents of the State of Delaware; provided that the enforceability of Paragraph 6(a) shall be governed by the Federal Arbitration Act, 9 U.S.C. Section 1 et seq., and not the laws of the State of Delaware.
7.    Entire Agreement.  The Grant Documents constitute the entire agreement among the parties hereto with respect to the subject matter hereof, and supersede any prior agreement or understanding among them with respect to such matter; provided that in the event of any conflict between the Exchange Agreement and the Partnership Agreement, the Partnership Agreement shall prevail and provided, further that in the event of any conflict between the Partnership Agreement and this Agreement, this Agreement shall prevail. 
8.    Interpretation and Certain Definitions.
(a)    All ambiguities shall be resolved without reference to which party may have drafted this Agreement.  All article or section headings or other captions in this Agreement are for convenience only, and they shall not be deemed part of this Agreement and in no way define, limit, extend or describe the scope or intent of any provisions hereof.  Unless the context clearly indicates otherwise:  (i) a term has the meaning assigned to it; (ii) “or” is not exclusive; (iii) provisions apply to successive events and transactions; (iv) each definition herein includes the singular and the plural; (v) each 

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reference herein to any gender includes the masculine, feminine, and neuter where appropriate; (vi) the word “including” when used herein means “including, but not limited to,” and the word “include” when used herein means “include, without limitation”; and (vii) references herein to specified paragraph numbers refer to the specified paragraph of this Agreement.  The words “hereof,” “herein,” “hereto,” “hereby,” “hereunder,” and derivative or similar words refer to this Agreement as a whole and not to any particular provision of this Agreement.  The words “applicable law” and any other similar references to the law include all applicable statutes, laws (including common law), treaties, orders, rules, regulations, determinations, orders, judgments, and decrees of any Governmental Authority.  The abbreviation “U.S.” refers to the United States of America.  All monetary amounts expressed herein by the use of the words “U.S. dollar” or “U.S. dollars” or the symbol “$” are expressed in the lawful currency of the United States of America.  The words “foreign” and “domestic” shall be interpreted by reference to the United States of America.
(b)    Nothing in this Agreement is intended to confer upon the Participant any right or privilege that is in addition, or otherwise more favorable, to the rights and privileges generally enjoyed by the other Limited Partners under the Partnership Agreement, the Exchange Agreement and the Tax Receivable Agreement, except to the extent such additional or more favorable right or privilege is expressly and intentionally conferred under this Agreement.  Without limiting the foregoing, the Granted Units are not subject to any Unit Designation which alters the terms and conditions generally applicable to Units under the Partnership Agreement.
(c)    “Oaktree Business” means the business and operations of the Oaktree Group, including the organization, investment objectives, expenses, operational structure, management structure and other material details of the Oaktree Group.
(d)    “Oaktree Related Person” means (i) any Oaktree Group Member, (ii) the current and former senior executives, officers, directors, employees and duly authorized agents and representatives of any Oaktree Group Member, and (iii) the current and former direct and indirect shareholders, partners, members and equityholders of any Oaktree Group Member (other than the current and former direct and indirect shareholders, partners, members and equityholders of OCG, who are not otherwise included in either of the foregoing clause (i) or (ii)).
(e)    This Agreement is intended to constitute a “Grant Agreement” for purposes of the Partnership Agreement and an “Award agreement” for purposes of the Plan.  The Granted Units are intended to constitute an “Award” for purposes of the Plan.
9.    Further Assurances.  The Participant agrees to take all actions that may be reasonably requested by the General Partner from time to time, including by executing and delivering all agreements, instruments and documents that may be reasonably requested by the General Partner, to carry out the purposes of the Grant Documents.
THE GRANTED UNITS HAVE NOT BEEN REGISTERED WITH OR QUALIFIED BY THE U.S. SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES REGULATORY AUTHORITY OR ANY OTHER REGULATORY AUTHORITY OF ANY OTHER JURISDICTION.  SUCH UNITS ARE BEING SOLD IN RELIANCE UPON EXEMPTIONS FROM SUCH REGISTRATION OR QUALIFICATION REQUIREMENTS.  THE GRANTED UNITS CANNOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF, IN EACH CASE, EXCEPT IN COMPLIANCE WITH THE RESTRICTIONS ON TRANSFERABILITY CONTAINED IN THIS AGREEMENT AND OTHER GRANT 

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DOCUMENTS AND THE SECURITIES LAWS OF ALL APPLICABLE JURISDICTIONS, INCLUDING APPLICABLE U.S. FEDERAL AND STATE SECURITIES LAWS.

 9Exhibit 10.21 2014 10K

Exhibit 10.21

EXECUTION COPY

OAKTREE CAPITAL GROUP, LLC
OAKTREE CAPITAL MANAGEMENT, L.P.

CONFIDENTIAL
February 24, 2015 
Jay S. Wintrob 
c/o Oaktree Capital Management, L.P.
333 South Grand Avenue, 28th Floor
Los Angeles, CA 90071

Re:     Amended and Restated Employment Agreement
Dear Mr. Wintrob:
On October 6, 2014, you entered into an agreement with Oaktree Capital Group, LLC, a Delaware limited liability company (“OCG”) and Oaktree Capital Management, L.P., a Delaware limited partnership (the “Company” and, together with its affiliates, “Oaktree”) setting out the terms and conditions of your employment by the Company as Chief Executive Officer of the Company and OCG (the “Original Employment Agreement”).  OCG, the Company and you have agreed to amend and restate the Original Employment Agreement, as reflected herein (this “Agreement”).  This Agreement is based on your providing, and continuing to provide, the services described below on a full-time basis.  
1.Term.  Your employment under the Original Employment Agreement commenced on November 1, 2014 (the “Commencement Date”), and shall continue under this Agreement through December 31, 2019, unless terminated earlier pursuant to Section 5 of this Agreement (such period of employment hereunder, the “Term”).  You are an “at will” employee of Oaktree, which means that your employment with Oaktree may be terminated at any time by you with or without Good Reason (defined below) or by Oaktree with or without Cause (defined below) and for any lawful reason or no reason; provided that if you intend to terminate your employment other than for Good Reason, you shall provide Oaktree with at least six (6) months prior written notice of the effective date of such termination in order to provide Oaktree with ample opportunity to arrange for the orderly transition of your duties and responsibilities.  At any time after such notice, Oaktree may elect, in its sole discretion, (i) for you to remain employed with Oaktree in your 

capacity of Chief Executive Officer (and with full duties, responsibilities and authority consistent with such position)  until such effective date of termination designated by you or (ii) to accept your resignation from employment effective as of a date designated by Oaktree prior to the end of said six (6) month period; provided that, if Oaktree elects to take the action described in clause (ii), such action shall not be regarded as a termination without Cause or constitute a basis for your termination for Good Reason, under this Agreement or for any purpose.
2.Employment.
(a)Title; Reporting.  During the Term, you will be employed by the Company and hold the title of Chief Executive Officer of OCG and the Company, and, at the request of the Board of Directors of OCG (the “Board”), of any other Oaktree affiliate that is covered by the indemnification provided, and the directors’ and officers’ liability insurance maintained, by OCG and the Company. You shall report directly to the Board.  During the Term, you shall be nominated to serve on the Board.
(b)Duties.  During the Term, you shall have such duties, responsibilities and authority as are commensurate with the title and position set forth in Section 2(a) hereof and such other duties, responsibilities and authority not inconsistent with your position, as may be assigned to you from time to time by the Board.  During the Term, you shall devote all of your business time and attention to Oaktree, the promotion of its interests and the performance of your duties and responsibilities hereunder and as a member of the Board and use your best efforts to faithfully and diligently serve Oaktree.  
Notwithstanding the foregoing, during the Term you shall be permitted to engage in outside activities, in your personal capacity, to the extent permitted by Oaktree’s Code of Ethics, Section 6 of this Agreement and other policies then in effect applicable to senior executives, subject to the foregoing not interfering with the performance of your duties hereunder other than in an immaterial respect.

3.Location.  Your principal place of employment shall be at Oaktree’s offices in Los Angeles, California or at such other locations as are mutually agreed between you and Oaktree; provided that, for the avoidance of doubt, you shall travel as reasonably required in connection with the performance of your duties.

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4.Compensation and Related Matters.
(a)    Profit Participation.   During the Term, subject to Section 5 below, you shall be entitled to receive:  
(i)Incentive Payments.  Certain payments (“Incentive Payments”) from Oaktree Fund GP I, L.P., Oaktree Fund GP II, L.P., and Oaktree Fund GP III, L.P (collectively, the “PoolCos”) in respect of the Net Incentive Income (defined below) received by the PoolCos from the investment funds and accounts managed by Oaktree (the “Funds”);
(ii)Investment Payments.  Certain payments from the PoolCos in respect of all income (excluding incentive income) earned in respect of a fiscal year by the PoolCos from their respective direct and indirect investments in Funds (including through the general partner of any such Fund) determined in a manner consistent with adjusted net income on the financial statements of OCG (“Net Investment Income”) received by the PoolCos from the Funds (“Investment Payments”); and 
(iii)Profit Payments.  Certain payments in respect of Net Operating Profit (defined below) of the entities that control the general partners and investment advisors of the Funds in which OCG has a minority economic interest and indirect control (the “Oaktree Operating Group”) with respect to each fiscal year of Oaktree (“Profit Payments” and, collectively with the Incentive Payments and Investment Payments, the “Profit Sharing Payments”).  
(iv)Profit Sharing Payment Calculation Rules.
(A)For fiscal year 2014, your Profit Sharing Payments shall equal 1.5% of the sum of the Net Incentive Income, Net Investment Income and Net Operating Profit (each, a “Profit Metric,” and the sum of the Profit Metrics, the “Aggregate Profit Metric”), and, for each of the fiscal years 2015 – 2019, your Profit Sharing Payments shall equal (x) 1.5% in respect of the portion of the Aggregate Profit Metric that is less than or equal to the Aggregate Profit Metric in 2014 plus (y) 1.75% in respect of the portion, if any, of such fiscal year’s Aggregate Profit Metric that is greater than the Aggregate Profit Metric for 2014. 

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(B)In calculating the Aggregate Profit Metric for any fiscal year, any negative amounts with respect to one or more of such Profit Metrics in a fiscal year shall be netted against positive amounts, if any, of such Profit Metrics in such fiscal year (but there shall be no carry forward to any future year of any net negative amount).
(C)For 2014, your Profit Sharing Payment shall not be less than $833,333.
(D)For each of 2015 through 2019, your aggregate Profit Sharing Payment shall not be less than $5 million per year, and, if your employment with Oaktree hereunder terminates in any such year, then your Profit Sharing Payment shall equal the product of the Profit Sharing Payments for such year and a fraction, the numerator of which is the number of days in the fiscal year during which you were employed hereunder, and the denominator of which is 365.
(v)Definitions.  
(A)     “Net Incentive Income” means with respect to a given fiscal year, (i) all incentive income earned by the PoolCos that is derived from any Fund (other than incentive income from any Pre-Employment Funds) determined in a manner consistent with the incentive income component of adjusted net income on the financial statements of OCG, net of (ii) all participation in such income granted to any party by Oaktree (other than participation through “Common Series Interests” in the PoolCos and the payments in respect of Net Incentive Income granted hereunder), including any such participation through “Points Series Interests” and “Net Carry Series Interests” in the PoolCos, and (iii) as adjusted to take into account payments in respect of Net Incentive Income granted hereunder and other participations in such incentive income as determined by Oaktree consistent with past practice.  In respect of each fiscal year, the incentive income to be included in clause (i) shall include incentive income relating to such year received by the Oaktree Operating Group in the subsequent year from those Evergreen Funds that pay incentive income annually.

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(B)    “Net Investment Income” means with respect to a given fiscal year, all income (excluding incentive income) earned by the PoolCos from their respective direct and indirect investments in Funds (including through the general partner of any such Fund), determined in a manner consistent with the investment income component of adjusted net income on the financial statements of OCG. 
(C)    “Net Operating Profit” means with respect to a given fiscal year, the adjusted net income of any and all of the members of the Oaktree Operating Group, determined in a manner consistent with adjusted net income on the financial statements of OCG, as further adjusted by (i) subtracting compensation expense with respect to the vesting of units granted after May 25, 2007 but before the OCG Class A Units were listed on the New York Stock Exchange, (ii) subtracting Oaktree Operating Group income taxes, (iii) adding back 50%  of the compensation expense recognized with respect to the vesting of that class of limited partnership units (“OCGH Units”) in Oaktree Capital Group Holdings, L.P. (“OCGH”) that, pursuant to the terms of the Fourth Amended and Restated Limited Partnership Agreement of OCGH, dated as of January 1, 2014 (as amended or restated from time to time) (the “OCGH Limited Partnership Agreement”), may be exchanged for OCG Class A Units on a one-for-one basis units, that were granted after May 25, 2007, and (iv) excluding incentive income (net of incentive income compensation expense) and phantom equity expense, (v) excluding Net Investment Income, and (vi) excluding compensation expense relating to individuals entitled to payments in respect of Net Operating Profit and Net Investment Income.
(D)    “Pre-Employment Fund” means a fund that is set forth on Exhibit A to this Agreement. 
(E)    “Evergreen Fund” means a Fund treated by the Company as an evergreen fund.  Such funds typically invest in marketable securities, private debt or equity on a long or short basis and with limited restrictions on investor withdrawal and redemption rights.

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Net Incentive Income, Net Investment Income, Net Operating Profits and the amount of any management fee offsets for any applicable Fund will be determined in accordance with the partnership agreement, separate account agreement, advisory agreement, side letter or other relevant document(s) governing or binding upon the applicable Fund, and the Profit Sharing Payments shall be determined in accordance with Oaktree’s general conventions consistently applied to other senior executives of Oaktree. 
(vi)Payment Dates.  Except as provided in Section 5 of this Agreement, your Profit Sharing Payments in respect of each fiscal year during the Term shall be paid to you in four (4) installments (each, a “Payment Installment”) on the same payment dates consistent with past practice (each such date, a “Quarterly Profit Payment Date”), subject to your continued employment on such Quarterly Profit Payment Date.  The amount of each Payment Installment due on each Quarterly Profit Payment Date shall be determined by Oaktree based on its periodic reasonable estimates of your expected Profit Sharing Payments.  Within thirty (30) days following delivery of the audited financial statements of Oaktree in respect of a given fiscal year, a determination shall be made as to whether the aggregate Payment Installments paid to you in respect of such fiscal year were greater or less than the Profit Sharing Payments to which you are due applying the calculation required by this Agreement (“Earned Amount”).  If your aggregate Payment Installments were less than the Earned Amount, you shall receive a true-up payment on such date to make up for any shortfall.   In calculating your entitlement to Profit Sharing Payments hereunder, the excess of your aggregate Payment Installments over the Earned Amount shall be netted against future Payment Installments, if any.  Amounts due hereunder shall be determined by Oaktree in good faith.  Notwithstanding anything herein to the contrary, you agree to repay to Oaktree any amount paid to you in excess of what you should have received under the terms of this Section 4(a)(vii) for any reason within thirty (30) days following notice from Oaktree that there has been any excess payment, including, without limitation, by reason of (i) a mistake in calculation or (ii) other administrative error, which notice must explain the reason for the excess in reasonable detail and ; provided, that, except as may be required by law, the requirement to repay amounts in excess of the Earned Amount for any fiscal year shall cease to apply one hundred and twenty (120) following the delivery of audited financial statements for such fiscal year.  Except as otherwise required in Section 5 below, each installment of any Profit Sharing Payment will only be made if you are actively employed by or providing services to Oaktree at the time at which such payment is otherwise to be made, and your entitlement to Profit Sharing Payments shall cease 

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immediately upon the termination of your employment with Oaktree, whether by voluntary resignation, involuntary termination (with or without Cause), death, Disability or otherwise for any reason; provided that, if your employment hereunder is not terminated prior to December 31, 2019, then you shall be entitled to Profit Sharing Payments in respect of all of 2019 (including any payments and grants of OCGH Units in settlement thereof that are made in 2020), even if your employment with Oaktree does not continue following December 31, 2019.    
(vii)Form of Payment.  The Profit Sharing Payment shall be satisfied in the form of cash and, if certain thresholds are met, a combination of cash and OCGH Units, as follows:  for each fiscal year, each Payment Installment, or portion thereof, shall be paid in cash until the aggregate amount paid in respect of all Payment Installments, or portions thereof, for such fiscal year is $3 million (the “Cash Threshold”).  The Profit Sharing Payments relating to the first and third quarters shall be paid in cash, and, subject to such payments in any given fiscal year already reaching the Cash Threshold, the Profit Sharing Payments relating to the second and fourth quarters shall be paid in a combination of cash and OCGH Units, as follows:  You will paid in OCGH Units such that 20% (or such higher percentage applicable to bonus payments to other most senior executive officers of Oaktree for such fiscal year) of your aggregate Profit Sharing Payments with respect to a given year is paid in the form of OCGH Units.   The value of the OCGH Units will be determined based on the closing price for the period commencing ten business days before the quarter end and ending ten business days after the last day of the quarter, and the OCGH Units shall be delivered on the same date as other equity grants are generally made around such time.  Such OCGH Units will have the terms and conditions set forth below in this Section 4(a)(vii) and shall be subject to the other standard terms and conditions that apply to grants of restricted OCGH Units to other senior executive officers of Oaktree.  The OCGH Units delivered in settlement of any portion of any Payment Installment herein shall vest in equal annual installments over the four (4) year period with the same annual vesting date as other OCGH Units granted at the same time, subject to your continued employment on each such vesting date, and you shall be entitled to receive distributions in respect of all such OCGH Units, whether vested or unvested, in the same amounts and at the same times as distributions are paid to other holders of OCGH Units.  The OCGH Units granted pursuant to this Section 4(a)(vii) shall be referred to herein as the “Profit Payment Units.”   You shall be responsible for satisfying any applicable U.S. federal, state and local tax withholding obligations and non-U.S. tax withholding obligations upon the vesting and 

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settlement of the OCGH Units.  You may elect to satisfy, in whole or in part, any such tax obligations by directing Oaktree to withhold a number of Profit Payment Units that would otherwise be deliverable to you with a fair market value equal to such withholding liability, subject to any limitations that the Board may impose for Oaktree to remain in compliance with any debt or indenture covenants, similar undertakings or applicable law.
(viii)For the avoidance of doubt, neither the grant to you of the right to receive Profit Sharing Payments hereunder nor the delivery to you of the Profit Payment Units, gives you any management, control or other rights with respect to any Funds. You and the interests granted hereunder shall be subject to the provisions of each PoolCo limited partnership agreement and any other document or arrangement which govern the terms of the PoolCos.  
(b)    Equity Value Units.  Effective as of December 2, 2014, you were granted 2,000,000 “EVUs”, representing special limited partnership units in OCGH, pursuant to the Oaktree Capital Group, LLC 2011 Equity Incentive Plan (the “EVU Award”).  Oaktree shall use reasonable efforts to structure the EVU Award so as to qualify for long-term capital gain tax treatment, or short-term capital gain tax treatment as a second preferred treatment, but such reasonable efforts must be balanced against Oaktree’s need to preserve the economic equivalent of the deductibility of the EVU Award.  
(c)    Oaktree has agreed to make certain replacement payments (“Replacement Payments”) to you to compensate you for certain reduced payment opportunities resulting from your departure from your prior employer and your commencing employment hereunder.    
(d)    Benefits. You shall be entitled to all rights and benefits for which you are otherwise eligible under any health, life and disability insurance plans, vacation policies, sick leave policies and 401(k) elections that Oaktree generally provides to senior executive officers.  You agree that Oaktree may deduct the premiums for your long-term disability insurance from the compensation otherwise payable to you.  
(e)    Travel.  When travelling via airplane for Oaktree-business purposes, (i) you shall be entitled to fly by means of a private aircraft which will be provided by Oaktree by any reasonably commercial method and subject to reasonable limitations which may be imposed from time to time by the 

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Board and (ii) your spouse shall be permitted to accompany you on such aircraft, subject to your being solely responsible for all tax liabilities associated therewith.  To the extent available, you shall also be entitled to fly by means of private aircraft for personal travel, subject to your payment for such use on the same terms applicable to the Chairman of Oaktree on the date of this Agreement.
(f)    Signing Bonus.  The Company shall pay you a signing bonus equal to $75,000 within ten (10) days following the Commencement Date.
(g)    No Representation regarding Tax Treatment; Section 409A. Oaktree makes no representation as to the tax treatment of distributions or payments with respect to the amounts described in this Section 4 (including Section 4(b)) under applicable U.S. federal or state tax laws. Notwithstanding anything herein to the contrary, if as a result of your separation from service, you would receive any payment that, absent the application of this paragraph, would be subject to interest and additional tax imposed pursuant to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury Regulations promulgated thereunder (collectively referred to herein as “Section 409A”) as a result of the application of Section 409A(a)(2)(B)(i) of the Code, then no such payment shall be payable prior to the date that is the earliest of (i) six (6) months after the date of your separation from service, (ii) your death, or (iii) such other date as will cause such payment not to be subject to such interest and additional tax. It is the intention of the parties that payments or benefits payable hereunder not be subject to the additional tax imposed pursuant to Section 409A of the Code, and this Agreement shall be interpreted accordingly.  To the extent such potential payments or benefits could become subject to Section 409A of the Code, you and Oaktree shall cooperate to amend your compensation, with the goal of giving you the economic benefits described herein in a manner that does not result in such tax being imposed. If a termination of your employment does not result in a “separation from service” within the meaning of Section 409A of the Code, then for purposes of determining the timing of any payment provided for by this Agreement, termination shall not be considered to occur until you have incurred such a separation from service. The preceding sentence shall not affect the determination of your entitlement to any payment or benefit, but only the timing thereof.  For purposes of Section 409A of the Code, each of the payments that may be made hereunder are designated as separate payments.  No amounts may be offset against non-qualified deferred compensation to the extent such offset would violate Section 409A.  

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5.Termination.  
(a)    You may voluntarily terminate your employment hereunder and the Term at any time and for any reason as set forth in Section 1 of this Agreement.  Any termination of employment by you shall be communicated to the Board by written notice, which shall include your date of termination of employment, but the Board reserves the right to accelerate such termination date.  The Company may, if approved by the Board, terminate your employment hereunder and the Term at any time and for any reason.  Your employment hereunder shall automatically terminate upon your death.
(i)    Upon the termination of your employment hereunder as a result of your death or Disability (defined below), subject, in the case of your termination due to Disability, to your satisfaction of any Release Condition (defined below), (A) all unvested Profit Payment Units shall become fully vested, (B) you shall be entitled to the Profit Sharing Payments for the full fiscal year of termination, and (C) you shall remain entitled to the Replacement Payments.
(ii)    Upon the termination of your employment hereunder by the Board without Cause or by you for Good Reason, subject to your satisfaction of any Release Condition, (A) all unvested Profit Payments Units shall become fully vested, (B) you shall receive your Profit Sharing Payments in respect of the fiscal year in which your termination occurs, but only for the period ending at the end of the fiscal quarter in which your termination occurs (the “Termination Quarter”), (C) (I) if such termination occurs after you have notified Oaktree in writing that you do not intend to continue your employment with Oaktree following the expiration of the Term or after mutual written agreement of the parties that your employment will not continue after expiration of the Term, you shall receive a payment in cash at the end of each of the successive eight (8) fiscal quarters following the Termination Quarter but not beyond the fifth (5th) anniversary of the Commencement Date, and (II) in all other cases,  you shall receive a payment in cash at the end of each of (x) the successive eight (8) fiscal quarters following the Termination Quarter, or if shorter (y) the longer of  (a) the successive fiscal quarters following the Termination Quarter remaining through the fifth (5th) anniversary of the Commencement Date or (b) six (6) fiscal quarters, where the amount paid in each quarter is 25% of the aggregate Profit Sharing Payments earned in respect of the four (4) full fiscal quarters that preceded the Termination Quarter, and (D) you shall remain entitled to the Replacement Payments.

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(iii)    Upon the termination of your employment for Cause,  all unvested  Profit Payments Units shall be immediately forfeited for no consideration and you shall not be entitled to any Profit Sharing Payment or any other payments or benefits in respect of any period occurring after your termination.  Upon termination of your employment due to your resignation without Good Reason, you shall retain any vested Profit Payment Units, all unvested Profit Payment Units shall be immediately forfeited for no consideration and you shall be entitled to receive Profit Sharing Payments in respect of performance through your termination date.
(iv)    Upon the termination of your employment for any reason, you shall be entitled to receive from the Company (a) any business expenses incurred by you but unreimbursed on the date of termination, provided that such expenses and required substantiation and documentation thereof are submitted within thirty (30) days of termination and that such expenses are reimbursable under Oaktree policy, (b) all other vested and accrued payments or benefits to which you are entitled under, and paid or provided in accordance with, the terms of any applicable employee benefit plan, arrangement or program other than under any severance plan or program, and (c) continued coverage under any indemnification provided, and any directors’ and officers’ liability insurance maintained, by OCG and the Company, in each case in accordance with the terms thereof.
(b)    Definitions.
(i)    “Affiliate” means with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with, the Person in question; provided that no investment fund or account, and no portfolio company, of any member of the Oaktree Group shall be deemed to be an Affiliate of any member of the Oaktree Group.  
(ii)    “Cause” means the occurrence of any of the following events during your provision of services to the Oaktree Group (defined below): (A) willful and continued failure to fulfill your responsibilities hereunder in accordance with the terms and provisions of this Agreement; (B) gross negligence or willful misconduct detrimental to any member of the Oaktree Group; (C) material breach by you of this Agreement or any other agreement between you and any member of the Oaktree Group; (D) material violation of any material applicable regulatory rule or regulation; (E) conviction of, or entry of a guilty plea or of no contest to, a felony (other than a motor-vehicle-related felony for which no custodial 

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penalty is imposed); (F) entry of an order issued by any court or regulatory agency removing you as an officer (or equivalent person) of a member of the Oaktree Group or prohibiting you from participating in the conduct of the affairs of any member of the Oaktree Group; (G) fraud, theft, misappropriation or dishonesty by you relating to any member of the Oaktree Group, including any theft of funds or misappropriation of Confidential Information (defined below); or (H) material breach of any of the Oaktree Group’s written policies.  Notwithstanding the foregoing, (i) termination by the Company for Cause for any prong of the preceding sentence other than clauses (D), (E), (F) or (G)  shall not be effective until and unless you have been given written notice of particular acts or circumstances which are the basis for the termination for Cause, you are thereafter given ten (10) days to cure the omission or conduct that is the basis of such claim, but in all circumstances only if such omission or conduct is reasonably capable of being cured and (ii) any action by you that is permitted by Section 6 of this Agreement shall not be deemed a breach of Oaktree’s Code of Ethics or the OCGH  or grounds for Cause.   If, within sixty (60) days after  your termination from employment hereunder after a resignation by you without Good Reason, Oaktree discovers that any occurrence set forth in clause (A) through (H) above has occurred, such shall constitute “Cause” for all purposes of this Agreement, so long as Oaktree provides you with notice of such discovery no later than the last day of such 60-day period, and,  for any occurrence other than one set forth in clause (D), (E), (F) or (G), you will be given ten (10) days to cure the omission or conduct that is the basis of such claim, but in all circumstances only if such omission or conduct is reasonably capable of being cured. 
(iii)    “Disability” means entitlement to long-term disability benefits under the Company’s long-term disability plan as in effect from time to time and the failure to have performed your material duties and responsibilities due to physical or mental illness or incapacity that lasts for one-hundred and eighty (180) days in any three-hundred and sixty-five (365) day period.
(iv)    “Good Reason” means without your prior written consent, one or more of the following events: (x) a material diminution or adverse change in you duties, authority, responsibilities, positions or reporting lines of authority hereunder; (y) the Board’ s requiring you to be based at a location in excess of thirty-five (35) miles from your principal job location or office specified in Section 3, except for required travel on Oaktree business to an extent substantially consistent with your position or (z) any material breach by the Company or OCG of this Agreement; provided, however, that prior to resigning for Good Reason, you shall give written notice to the Board of the facts and circumstances claimed to provide 

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a basis for such resignation not more than thirty (30) days following your knowledge of such facts and circumstances, and the Company shall have thirty (30) days after receipt of such notice to cure such facts and circumstances (and if so cured, you shall not be permitted to resign for Good Reason in respect thereof).  Any termination of employment by you for Good Reason shall be communicated to the Board by written notice, which shall include your date of termination of employment, which shall be within sixty (60) days after the end of the cure period, but the Board reserves the right to accelerate such termination date. 
(v)    “Oaktree Group” means collectively, Oaktree and its Affiliates.
(vi)    “Person” means, any individual, corporation, firm, partnership  (general or limited), joint venture, limited liability company, association, business, estate, trust, business association, organization, unincorporated organization, any other entity or a government or any department, agency, authority, instrumentality or political subdivision thereof,  or any other entity.  
(vii)    “Release Condition” means you have executed and delivered to Oaktree, no later than 25 days after the applicable termination date, and have not sought to revoke (whether or not you have any right under applicable law to revoke), a release substantially in the form attached hereto as Exhibit B, fully and finally releasing the Oaktree Group and its related persons from all claims and liabilities whatsoever, subject to the exceptions in Exhibit B.
6.Confidential Information; Covenants. You acknowledge and agree that your provision of services to any member of the Oaktree Group, including your employment by the Company and OCG, creates a relationship of confidence and trust between you and the Oaktree Group with respect to Confidential Information and Intellectual Property (defined below) pertaining to the business of the Oaktree Group. Moreover, you recognize that such information (including information created, discovered or developed by, or made known to you from and after the date this Agreement is entered into) has commercial value in the business in which the Oaktree Group is engaged. Accordingly, you hereby covenant, agree and acknowledge as follows:

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(a)    Confidential Information and Intellectual Property.
(i)    You shall not without the prior express written consent of the Chairman of Oaktree (A) use for your benefit, use to the detriment of any member of the Oaktree Group, or disclose, at any time during your employment by any member of the Oaktree Group, or if you cease to be so employed, at any time thereafter (unless and to the extent you reasonably determine that such disclosure is required by law or otherwise appropriate in the course of the performance of your duties hereunder)  in the performance of your duties as an employee of a member of the Oaktree Group), any Confidential Information, or (B) take, remove or retain, upon your ceasing to be so employed for any reason, any document, paper, electronic file or other storage medium containing or relating to any Confidential Information, any Intellectual Property or any physical property of any member of the Oaktree Group, except that you may retain your address book/contact list to the extent it only contains contact information.
(ii)    You agree (A) to deliver to Oaktree on the date you cease to be an employee for any reason, or promptly at any other time that any member of the Oaktree Group may request, all memoranda, notes, plans, records, reports, computer files and tapes, printouts and software and other documents and data (and copies thereof) within your possession or control that contain any Confidential Information or any Intellectual Property, and (B) to the extent not yet publicly disclosed, to keep the terms of this Agreement confidential, except as otherwise required by applicable law and except that the terms hereof may be disclosed to your family members, attorneys, accountants or other professional advisers who agree to keep the terms of this Agreement confidential, to taxing and other governmental or regulatory authority and to disclose in compliance with legal process.
(iii)    You agree that any and all Intellectual Property is and shall be the exclusive property of the Oaktree Group for the Oaktree Group’s sole use. In addition, you acknowledge and agree that the investment performance of the funds and accounts managed by any member of the Oaktree Group is attributable to the efforts of the team of professionals of the Oaktree Group and not to the efforts of any single individual, and that, therefore, the performance records of the funds and accounts managed by any member of the Oaktree Group are and shall be the exclusive property of the Oaktree Group. You agree that you shall not use or disclose any Intellectual Property, including any of the performance records of the funds and accounts managed by any member of the Oaktree Group without the prior written consent of the 

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Chairman of Oaktree, or one of the Chairmen of Oaktree if more than one Chairman exists, except in the ordinary course of your employment with Oaktree or as required by legal process or governmental or regulatory inquiry.
(iv)    Without limiting the generality of the foregoing, any trade secrets of the Oaktree Group will be entitled to all of the protections and benefits under applicable law. You acknowledge and agree that (A) you may have had, and may have in the future, access to information that constitutes trade secrets but that has not been, and will not be, marked to indicate its status as such and (B) the preparation of this letter constitutes reasonable efforts under the circumstances by the Oaktree Group to notify you of the existence of such trade secrets and to maintain the confidentiality of such trade secrets within the provisions of the Uniform Trade Secrets Act or other applicable law.
(b)    Interference.  To the maximum extent permitted by applicable law, while you are providing services to any member of the Oaktree Group, and for two years after you cease to provide services to any member of the Oaktree Group, you shall not directly or indirectly: (A) solicit any customer or client of any member of the Oaktree Group for a Competitive Business (defined below); provided that this Section 6(b) shall not be deemed to prohibit you from participating in the normal marketing efforts of a Competitive Business so long as you avoid soliciting any client or customer that you know as a result of your employment by any member of the Oaktree Group to be a client or customer of any member of the Oaktree Group, other than clients or customers of the Oaktree Group that, as of the termination of your employment, are bona fide pre-existing clients or customers of the Competitive Business; provided, further that you shall not be prohibited from soliciting clients or customers of AIG Life and Retirement, as long as any such client or customer is not a sovereign wealth fund, a state pension fund or one of the largest 100 corporate pension plans, (B) induce or attempt to induce any employee of the Oaktree Group to leave the Oaktree Group or in any way interfere with the relationship between the Oaktree Group and any employee thereof, except in the good faith performance of your duties hereunder, or (C) hire, engage, employ, retain or otherwise enter into any business affiliation with any person who was an employee of the Oaktree Group at any time during the twelve-month period prior to the date you cease to provide services to any member of the Oaktree Group; provided that you shall not be prohibited from becoming employed by an organization that employs other or former employees of the Oaktree Group if you were not involved in the circumstances that led to such employees becoming employed by such organization.  

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(c)    Non-Disparagement. You hereby agree that, during the Term and for five (5) years following the termination of your employment from Oaktree, you shall not make any statements, encourage others to make statements or release information that disparages, discredits, or defames any member of the Oaktree Group or engage in any activity that would have the effect of disparaging, discrediting or defaming any member of the Oaktree Group. Notwithstanding the foregoing, nothing in this Agreement shall prohibit you from making truthful statements when required by law or as a response to any statement made about you in breach of this Section 6(c).  Oaktree hereby agrees that it shall instruct its Chairmen, Vice Chairman, directors and executive officers not to, during the Term and for five (5) years following the termination of your employment from Oaktree, make any statements, encourage others to make statements or release information that disparages, discredits, or defames you or engage in any activity that would have the effect of disparaging, discrediting or defaming you. Notwithstanding the foregoing, nothing in this Agreement shall prohibit Oaktree from making truthful statements when required by law.
(d)    Enforcement. Because your services are unique and because you have access to Confidential Information and Intellectual Property, you agree that a remedy at law for any breach or threatened breach of the provisions of this Section 6 would be inadequate and, therefore, you agree that any member of the Oaktree Group shall be entitled to injunctive relief, in addition to any other available rights and remedies in case of any such breach or threatened breach; provided that nothing contained herein shall be construed as prohibiting any member of the Oaktree Group from pursuing any other rights and remedies available for any such breach or threatened breach. If, at the time of enforcement of any of the paragraphs of this Section 6, a court or arbitrator shall hold that the duration, scope or area restrictions stated herein are unreasonable under the circumstances then existing, the parties agree that the maximum duration, scope or area reasonable under such circumstances shall be substituted for the stated duration, scope or area, and that the court or arbitrator, as the case may be, shall be allowed to construe or revise the restrictions contained herein to cover the maximum period, scope and area permitted by law. You expressly acknowledge and agree that (i) you have carefully read this Agreement and have given careful consideration to the restraints imposed upon you by this Section 6; (ii) you are in full accord as to their necessity; (iii) the rights and remedies under this Section 6 shall be in addition to any other rights and remedies of any member of the Oaktree Group; and (iv) the provisions of this Section 6 are an essential inducement to Oaktree to enter into this Agreement.  For the avoidance of doubt, your obligations under this Section 6 are in addition to, and do 

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not qualify or relieve you of any obligation you may have under any other agreement you may have with any other member of the Oaktree Group.
(e)    Certain Definitions. For purposes of this Agreement, the following capitalized terms shall have the meanings set forth below.
(i)    “Competitive Business” means any business which is competitive with the business of any member of the Oaktree Group (including raising, organizing, managing or advising any fund or separate account having an investment strategy in any way competitive with any of the funds or separate accounts managed by any member of the Oaktree Group).  
(ii)    “Confidential Information” means any information concerning the employees, organization, business or finances of any member of the Oaktree Group or any third party (including any client, investor, partner, portfolio company, customer, vendor, or other person) with which a member of the Oaktree Group is engaged or conducts business, including business strategies, operating plans, acquisition strategies (including the identities of, and any other information concerning, possible acquisition candidates), financial information, valuations, analyses, investment performance, market analysis, acquisition terms and conditions, personnel, compensation and ownership information, know-how, customer lists and relationships, the identity of any client, investor, partner, portfolio company, customer vendor or other third party, and supplier lists and relationships, as well as all other secret, confidential or proprietary information belonging to any member of the Oaktree Group; provided that Confidential Information shall not include any information generally known to the public other than as a result of disclosure by you not permitted hereunder.
(iii)    “Intellectual Property” means (A) any and all investment or trading records, agreements or data; (B) any and all financial and other analytic models, records, data, methodologies or software; (C) any and all investment advisory contracts, fee schedules and investment performance data; (D) any and all investment agreements, limited partnership agreements, subscription agreements, private placement memorandums and other offering documents and materials; (E) any and all client, investor or vendor lists, records or contact data; (F) any and all other documents, records, materials, data, trade secrets and other incidents of any business carried on by any member of the Oaktree Group or learned, created, developed or carried on by any employee of any member of the Oaktree Group (in whatever form, 

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including print, computer file, diskette or otherwise); and (G) all trade names, services marks and logos under which any member of the Oaktree Group does business, and any combinations or variations thereof and all related logos.
(f)    Conflict.  In the event of any conflict between the provisions of this Section 6 and corresponding covenants in the OCGH Limited Partnership Agreement, Oaktree’s Code of Ethics, Oaktree’s equity incentive plans or agreements, equity grant agreements or any other agreements that you enter into with Oaktree relating to intellectual property rights, nondisclosure of confidential information, non-disparagement or non-solicitation (and corresponding enforcement, remedial and interpretive provisions), the provisions of this Section 6 shall control.   You will be subject to all other provisions of the OCGH Limited Partnership Agreement, Code of Ethics, equity incentive plans and agreements; provided, that, for purposes of Section 10.4(b) of the OCGH Limited Partnership Agreement or any similar provision in any Oaktree equity incentive plan, agreement or policy or equity grant agreement, a “Competitive Business” shall not include any business enterprise that is primarily a commercial bank, an investment bank, an insurance company or a retail distribution business.  
7.    Representations of Executive; Advice of Counsel.  
(a)    You represent and warrant to Oaktree that (i) you are not, and since the date of commencement of your employment you have not been,  an employee of any other person or entity, (ii) your employment with Oaktree or any other member of the Oaktree Group, and your performance of services for Oaktree or any other member of the Oaktree Group, will not conflict with or be constrained by (A) any prior employment, employment agreement, consulting agreement, undertaking or relationship or (B) any other contractual obligations, fiduciary or other duties, or legal restrictions applicable to you, (iii) you are not the subject of any orders, judgments or decrees of any court, regulatory agency or other governmental body limiting or otherwise affecting your professional activities or addressing any issue related to whether your professional conduct has been in compliance with applicable law or securities industry professional standards, (iv) to your knowledge, no claim, action or investigation involving any such matters is pending, or to your knowledge, threatened, and (v) you answered “NO” to each of the questions in the Advisory Affiliate Questionnaire submitted to Oaktree and such answers are and continue to be true and accurate. You hereby covenant that you shall immediately inform Oaktree if any of the 

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foregoing representations is or becomes untrue or inaccurate and will update the Advisory Affiliate Questionnaire upon the request of Oaktree.
(b)    Prior to execution of this Agreement, you were advised by the Company of your right to seek independent advice from an attorney of your own selection regarding this Agreement.  You acknowledge that you have entered into this Agreement knowingly and voluntarily and with full knowledge and understanding of the provisions of this Agreement after consulting with counsel.  You further represent that in entering into this Agreement, you are not relying on any statements or representations made by any of the Company’s directors, officers, employees or agents which are not expressly set forth herein, and that you are relying only upon your own judgment and any advice provided by your attorney.  
8.    Compliance with Law. In connection with your conduct and activities on behalf of Oaktree, you shall not knowingly fail to comply with any applicable law, including any applicable U.S. state, U.S. federal or non-U.S. securities law. 
9.    Miscellaneous
(a)    Entire Agreement.  This Agreement constitutes the entire and final expression of the agreement of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, oral and written, between the parties hereto with respect to the subject matter hereof, including the Original Employment Agreement and any other employment agreement or term sheet, in final form or draft form, between you and any member of the Oaktree Group. This Agreement may be modified or amended only by an instrument in writing signed by both parties hereto that specifically references this Agreement.
(b)    Withholding. You hereby authorize Oaktree to deduct and withhold from any compensation or amounts otherwise payable to you any and all amounts required to be deducted or withheld under any applicable law or otherwise, including all taxes required to be withheld by applicable law or regulation. 
(c)    Assignment; Designation of Beneficiaries. Except as set forth in this Section 9(c), the rights and benefits hereunder shall not be assignable or transferable, and any purported transfer, sale, assignment, pledge or other encumbrance or disposition or attachment of any payments or benefits 

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hereunder other than by operation of law, shall not be permitted or recognized. The Company may assign this Agreement to its affiliates; provided that no such assignment shall affect in any way the benefits to you or Oaktree contemplated by this Agreement or release the Company from liability hereunder.  You agree to take any such actions and to execute any such documents as the Company may reasonably request in order to further implement and evidence any such assignment. You may, with the consent of the Company, designate in writing, on forms prescribed by and filed with the Company, one or more beneficiaries to receive any payments payable after your death and may at any time amend or revoke any such designation; provided that if you designate a person other than your spouse as a beneficiary, your spouse must sign a statement specifically approving such designation. Any payments to which you would be entitled by virtue of this Agreement while alive will be paid, following your death, to the designated beneficiary. If no beneficiary designation is in effect at the time of death, or in the absence of a spouse’s approval as herein above provided, payments to which you are entitled hereunder shall be made to your personal representative.
(d)    Waiver.  Failure to insist upon strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant or condition, nor shall any waiver or relinquishment of any right or power hereunder at any one or more times be deemed a waiver or relinquishment of such right or power at any other time or times.
(e)    Notices.  Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and either delivered in person (including by a nationally recognized overnight courier service) or sent by first class certified or registered mail, postage prepaid, if to any member of the Oaktree Group, at Oaktree’s principal place of business, Attn: General Counsel, and if to you, at your home address most recently filed with Oaktree, or to such other address or addresses as either party shall have designated in writing to the other party hereto. 
(f)    Severability.  You agree that in the event any arbitrator or court of competent jurisdiction shall finally hold that any provision of Section 6 above is void or constitutes an unreasonable restriction against you, such provision shall not be rendered void but shall be enforced to such extent as such arbitrator or court, as the case may be, may determine constitutes a reasonable restriction under the circumstances. If any part of this Agreement other than Section 6 above is held by an arbitrator or court of competent 

20

jurisdiction to be invalid, illegal or incapable of being enforced in whole or in part by reason of any rule of law or public policy, such part shall be deemed to be severed from the remainder of this Agreement for the purpose only of the particular legal proceedings in question, and all other covenants and provisions of this Agreement shall in every other respect continue in full force and effect and no covenant or provision shall be deemed dependent upon any other covenant or provision.
(g)    Governing Law.  This Agreement shall be construed and enforced, along with any rights, remedies, or obligations provided for hereunder, in accordance with the laws of the State of California applicable to contracts made and to be performed entirely within the State of California; provided that the enforceability of Section 9(h) below shall be governed by the Federal Arbitration Act, 9 U.S.C. § 1 et seq., and not the laws of the State of California.
(h)    Arbitration.  You and Oaktree acknowledge and agree that, to the extent permitted by law, any and all disputes, claims or controversies arising out of or relating to the hiring process, your employment relationship with any member of the Oaktree Group or the termination of that employment relationship (including any claims for harassment, retaliation, or discrimination pursuant to Title VII of the Civil Rights Act of 1964, the Fair Labor Standards Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act, or any similar provision of state or federal statutory or common law) shall be submitted to final and binding arbitration before Judicial Arbitration and Mediation Services, Inc. (“JAMS”).  The arbitration shall take place in Los Angeles, California, and shall be conducted in accordance with the provisions of JAMS Employment Arbitration Rules and Procedures, or any similar successor, in effect at the time of filing of the demand for arbitration.  The arbitration shall be held before and decided by a single neutral arbitrator, experienced in employment matters.  You and Oaktree agree to participate in the arbitration in good faith.  The arbitrator shall have the power to award any appropriate remedy allowed by applicable law, but shall not have power to modify the provisions of this Section 9(h), to make an award or impose a remedy that is not available to a court of general jurisdiction sitting in the State of California, and the jurisdiction of the arbitrator is limited accordingly.  Unless otherwise determined by the arbitrator, the fees and costs of the arbitrator and the arbitration (but not the parties’ respective individual costs of conducting the arbitration) shall be borne equally by Oaktree and you; provided, that Oaktree shall pay a greater portion (including, if required, all) of the fees and costs of the arbitrator and the arbitration where required by applicable law.  The arbitrator shall apply California 

21

substantive law, including any applicable statutes of limitation.  Adequate discovery shall be permitted by the arbitrator consistent with applicable law and the objectives of arbitration.  The award of the arbitrator, which shall be in writing summarizing the basis for the decision, shall be final and binding upon the parties (subject only to limited review as required by law) and may be entered as a judgment in any court having competent jurisdiction, and the parties hereby consent to the jurisdiction of the courts of the State of California.  The details, existence and outcome of any such arbitration and any information obtained in connection with any such arbitration (including any discovery taken in connection with such arbitration) shall be kept strictly confidential and shall not be disclosed or discussed with any person not a party to, or witness in, the arbitration; provided that a party may make such disclosures as are required by applicable law or legal process; provided further that a party may make such disclosures to its attorneys, accountants or other agents and representatives who reasonably need to know the disclosed information in connection with any arbitration pursuant to this Section 9(h) and who are obligated to keep such information confidential to the same extent as such party. If either you or Oaktree, as the case may be, receives a subpoena or other request for information from a third party that seeks disclosure of any information that is required to be kept confidential pursuant to the immediately preceding sentence, or otherwise believes that it may be required to disclose any such information, you or Oaktree, as the case may be, shall (i) promptly notify the other party to the arbitration and (ii) reasonably cooperate with such other party in taking any legal or otherwise appropriate actions, including the seeking of a protective order, to prevent the disclosure or otherwise protect the confidentiality, of such information.  To the extent necessary, disclosure of the EVU Award may be made in connection with enforcement of such award. For the avoidance of doubt, you and Oaktree agree and acknowledge that future agreements or contracts between you and Oaktree may include arbitration provisions governing disputes, claims or controversies that shall be separate and distinct from any arbitration pursuant to this Section 9(h).
(i)    Interpretation.  All ambiguities shall be resolved without reference to which party may have drafted this Agreement.  All section headings or other captions in this Agreement are for convenience only, and they shall not be deemed part of this Agreement and in no way define, limit, extend or describe the scope or intent of any provisions hereof.  Unless the context clearly indicates otherwise: (i) a term has the meaning assigned to it; (ii) “or” is not exclusive; (iii) provisions apply to successive events and transactions; (iv) each definition herein includes the singular and the plural; (v) each reference herein to 

22

any gender includes the masculine, feminine, and neuter where appropriate; (vi) the word “including” when used herein means “including, but not limited to,” and the word “include” when used herein means “include, without limitation”; and (vii) references herein to specified section numbers refer to the specified section of this Agreement. The words “hereof,” “herein,” “hereto,” “hereby,” “hereunder,” and derivative or similar words refer to this Agreement as a whole and not to any particular provision of this Agreement.  The words “applicable law” and any other similar references to the law include all applicable statutes, laws (including common law), treaties, orders, rules, regulations, determinations, orders, judgments, and decrees of any governmental authority.  The abbreviation “U.S.” refers to the United States of America.  All monetary amounts expressed herein by the use of the words “U.S. dollar” or “U.S. dollars” or the symbol “$” are expressed in the lawful currency of the United States of America.  The words “foreign” and “domestic” shall be interpreted by reference to the United States of America.
(j)    Binding Effect.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, successors, legal representatives and assigns.
(k)    Counterparts.  This Agreement may be executed in any number of counterparts.  Each of which shall be deemed an original, but all of which together shall constitute one and the same agreement.

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If you agree to and accept the foregoing please so indicate by signing this Agreement in the space provided below and returning a signed copy to the undersigned.  Upon acceptance by you, this Agreement will become our agreement as to the terms and conditions of your employment.

OAKTREE CAPITAL MANAGEMENT, L.P. 
 
 
By:    /s/ Howard S. Marks             
Name: Howard S. Marks 
Title: Co-Chairman
By:    /s/ Bruce A. Karsh             
Name:  Bruce A. Karsh 
Title: Co-Chairman and Chief Investment Officer
OAKTREE CAPITAL GROUP, LLC 

By:  Oaktree Capital Group Holdings GP, LLC    
By:    /s/ Howard S. Marks             
Name: Howard S. Marks 
Title:  Co-Chairman
By:    /s/ Bruce A. Karsh             
Name: Bruce A. Karsh 
Title: Co-Chairman and Chief Investment Officer
 

I agree and accept the terms set out above as of the date of this Agreement.

/s/ Jay S. Wintrob             
JAY S. WINTROB

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EXHIBIT A

	
	
	List of Pre-Employment Funds **

	 

	Columbia/HCA Master Retirement Trust (Opportunities Fund II)

	Gryphon Domestic VI, LLC

	Gryphon Domestic VII, LLC

	Highstar Capital IV, L.P.

	Highstar Capital IV Prism, L.P.

	Oaktree Asia Special Situations Fund, L.P.

	Oaktree BAA Emerging Markets Opportunities Fund, L.P.

	Oaktree Desert Sky Investment Fund, L.P.

	Oaktree Emerging Market Opportunities Fund, L.P.

	Oaktree Enhanced Income Fund, L.P.

	Oaktree Enhanced Income Fund II, L.P.

	Oaktree European Credit Opportunities Fund, L.P.

	Oaktree European Dislocation Fund, L.P.

	Oaktree European Principal Fund III, L.P.

	Oaktree FF Investment Fund, L.P. 

	Oaktree Glacier Investment Fund, L.P.

	Oaktree High Yield Plus Fund, L.P.

	Oaktree Huntington Investment Fund, L.P.

	Oaktree Japan Absolute Return Fund, L.P.

	Oaktree Japan Opportunities Fund, L.P.

	Oaktree Japan Opportunities Value Fund, L.P.

	Oaktree Loan Fund 2x, L.P.

	Oaktree Mezzanine Fund III, L.P.

	Oaktree Opportunities Fund VIII, L.P.

	Oaktree Opportunities Fund VIIIb, L.P.

	Oaktree Opportunities Fund IX, L.P.

	Oaktree Power Opportunities Fund III, L.P.

	Oaktree Principal Fund V, L.P.

	Oaktree Private Investment Fund 2009, L.P.

	Oaktree Private Investment Fund 2010, L.P.

	Oaktree Private Investment Fund 2012, L.P.

	Oaktree Real Estate Debt Fund, L.P.

	Oaktree Real Estate Opportunities Fund IV, L.P.

	Oaktree Real Estate Opportunities Fund V, L.P.

	Oaktree Real Estate Opportunities Fund VI, L.P.

	Oaktree Remington Investment Fund, L.P.

	Oaktree TX Emerging Market Opportunities Fund, L.P.

	OCM Asia Principal Opportunities Fund, L.P.

	OCM CBH Co-Invest, L.P.

	OCM CBH Co-Invest 2, L.P.

	OCM European Principal Opportunities Fund II, L.P.

	OCM European Principal Opportunities Fund, L.P.

25

	
	
	OCM Mezzanine Fund, L.P.

	OCM Mezzanine Fund II, L.P.

	OCM Opportunities Fund II, L.P.

	OCM Opportunities Fund III, L.P.

	OCM Opportunities Fund IV, L.P.

	OCM Opportunities Fund IVb, L.P.

	OCM Opportunities Fund V, L.P.

	OCM Opportunities Fund VI, L.P.

	OCM Opportunities Fund VII, L.P.

	OCM Opportunities Fund VIIb, L.P.

	OCM Principal Opportunities Fund II, L.P.

	OCM Principal Opportunities Fund III, L.P.

	OCM Principal Opportunities Fund IIIA, L.P.

	OCM Principal Opportunities Fund IV, L.P.

	OCM Real Estate Opportunities Fund A, L.P.

	OCM Real Estate Opportunities Fund B, L.P.

	OCM Real Estate Opportunities Fund II, L.P

	OCM Real Estate Opportunities Fund III, L. P.

	OCM Real Estate Opportunities Fund IIIA, L.P.

	OCM STR Co-Invest 1, L.P.

	OCM STR Co-Invest 2, L.P.

	OCM/GFI Power Opportunities Fund II (Cayman), L.P.

	OCM/GFI Power Opportunities Fund II, L.P.

** Each fund listed on this Exhibit A, includes all parallel funds that invest alongside such funds.

26

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