Document:

Exhibit1056

CONFIDENTIAL & PROPRIETARY    

This limited partnership is the general partner of Apollo Credit Opportunity Fund III LP and Apollo Credit Opportunity Fund III (Offshore) LP and earns “carried interest” on COF III profits.

                                                    

APOLLO CREDIT OPPORTUNITY ADVISORS III (APO FC) LP

Second Amended and Restated

Agreement of Limited Partnership

                                                                                                     
 
Dated as of December 18, 2014 

                                                                                                        

                                                    

TABLE OF CONTENTS

Page
ARTICLE 1 DEFINITIONS    2
Section 1.1Definitions; Interpretation    2
ARTICLE 2 FORMATION AND ORGANIZATION    9
Section 2.1Formation    9
Section 2.2Name    10
Section 2.3Principal Offices; Registered Office and Agent    10
Section 2.4Term of Partnership    10
Section 2.5Purpose of the Partnership    11
Section 2.6Actions by Partnership    11
Section 2.7Admission of Limited Partners    11
ARTICLE 3 CAPITAL    11
Section 3.1Contributions to Capital    11
Section 3.2Rights of Partners in Capital    12
Section 3.3Capital Accounts    13
Section 3.4Allocation of Profit and Loss    14
Section 3.5Tax Allocations    16
Section 3.6Tax Treatment of Points    16
Section 3.7FATCA    17
Section 3.8Reserves; Adjustments for Certain Future Events    18
Section 3.9Finality and Binding Effect of General Partner’s Determinations    19
Section 3.10Alternative GP Vehicles    19
ARTICLE 4 DISTRIBUTIONS    20
Section 4.1Distributions    20
Section 4.2Withholding of Certain Amounts    22
Section 4.3Limitation on Distributions    23
Section 4.4Distributions in Excess of Basis    23
ARTICLE 5 MANAGEMENT    23
Section 5.1Rights and Powers of the General Partner    23
Section 5.2Delegation of Duties    24
Section 5.3Transactions with Affiliates    25
Section 5.4Expenses    25
Section 5.5Rights of Limited Partners    25
Section 5.6Other Activities of General Partner    26
Section 5.7Duty of Care; Indemnification    26
ARTICLE 6 ADMISSIONS, TRANSFERS AND WITHDRAWALS    28
Section 6.1Admission of Additional Limited Partners; Effect on Points    28
Section 6.2Admission of Additional General Partner    28
Section 6.3Transfer of Interests of Limited Partners    28
Section 6.4Withdrawal of Partners    30
Section 6.5Pledges    30
ARTICLE 7 ALLOCATION OF POINTS; ADJUSTMENTS OF POINTS AND RETIREMENT OF PARTNERS    31
Section 7.1Allocation of Points    31
Section 7.2Retirement of Partner    33
Section 7.3Effect of Retirement on Points    33
ARTICLE 8 DISSOLUTION AND LIQUIDATION    33
Section 8.1Dissolution and Liquidation of Partnership    33
ARTICLE 9 GENERAL PROVISIONS    34
Section 9.1Consistent Economic Treatment    34
Section 9.2Carried Interest Related to the Fund    35
Section 9.3Amendment of Partnership Agreement and Co-Investors (A) Partnership Agreement    35
Section 9.4Special Power-of-Attorney    36
Section 9.5Notices    38
Section 9.6Agreement Binding Upon Successors and Assigns    38
Section 9.7Merger, Consolidation, etc.    39
Section 9.8Governing Law; Dispute Resolution    39
Section 9.9Termination of Right of Action    40
Section 9.10Not for Benefit of Creditors    41
Section 9.11Reports    41
Section 9.12Filings    41
Section 9.13Counterparts    41

APOLLO CREDIT OPPORTUNITY ADVISORS III (APO FC) LP

SECOND AMENDED AND RESTATED  
AGREEMENT OF LIMITED PARTNERSHIP

SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP of APOLLO CREDIT OPPORTUNITY ADVISORS III (APO FC) LP, a Delaware limited partnership (the “Partnership”), dated as of December __, 2014, by and among Apollo Credit Opportunity Advisors III (APO FC) GP LLC, a Delaware limited liability company, as the sole general partner (the “General Partner”), APH Holdings (FC), L.P., a Cayman Islands exempted limited partnership (“APH”), Apollo CIP Partner Pool, L.P., a Cayman Islands exempted limited partnership (“Partner Pool LP”), Apollo CIP Professionals, L.P., a Delaware limited partnership (“Professionals LP”) (with effect from and after January 1, 2015), and the other Persons (as defined below) who shall execute this Agreement, whether in counterpart, by separate instrument, or otherwise, and hereafter shall be admitted to the Partnership as limited partners in accordance with the provisions hereof and whose names and addresses shall, upon such admission, be reflected in the Register of Partners (as defined below) as limited partners of the Partnership (together with APH, Partner Pool LP and Professionals LP, the “Limited Partners,” and each, a “Limited Partner”).

R E C I T A L S :

A.    The Partnership was formed as a limited partnership under the Delaware Act (as defined below) upon the filing of a Certificate of Limited Partnership of the Partnership (the “Certificate”) with the Office of the Secretary of State of the State of Delaware on October 22, 2014.
B.    The General Partner and APH have entered into an Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of October 24, 2014 (the “Amended Agreement”).
C.    On October 27, 2014, Apollo Credit Opportunity Advisors III LP transferred, conveyed, assigned and delivered to the Partnership all of its right, title and interest in and to all of the general partner interests in COF III (as defined below).
D.    On October 27, 2014, APH Holdings (DC), L.P. transferred, conveyed, assigned and delivered to APH all of its right, title and interest into all of the limited partnership interests in the Partnership.
E.    The parties hereto acknowledge and agree that Professionals LP will be admitted to the Partnership effective January 1, 2015, and that the provisions hereof (including rights to allocations and distributions) with respect to Professionals LP will not take effect until such date.
F.    The parties hereto desire to amend and restate the Amended Agreement to reflect: (i) the admission of those Persons party hereto who are listed on the Register of Partners as Limited Partners of the Partnership on the date hereof (but subject to Recital E with respect to Professionals LP); and (ii) the modifications set forth herein.
NOW, THEREFORE, the parties hereby agree to amend and restate the Amended Agreement in its entirety to read as follows:
Article 1 
DEFINITIONS
Section 1.1    Definitions; Interpretation.
(a)    Capitalized terms used but not otherwise defined herein have the following meanings:
“Affiliate” means with respect to any Person any other Person directly or indirectly controlling, controlled by or under common control with such Person.  Except as the context otherwise requires, the term “Affiliate” in relation to AGM includes each collective investment fund and other client account sponsored or managed by AGM or its affiliated asset management entities, but, in each case, does not include Portfolio Companies (except with respect to Bad Acts), Partner Pool LP or Professionals LP or any of the limited partners of Partner Pool LP or Professionals LP.
“AGM” means Apollo Global Management, LLC, a Delaware limited liability company.
“Agreement” means this Second Amended and Restated Agreement of Limited Partnership, as amended or supplemented from time to time.
“Alternative GP Vehicle” has the meaning set forth in Section 3.10.
“Amended Agreement” has the meaning set forth in Recital B.
“APH” has the meaning set forth in the preamble.
“APH Percentage” has the meaning agreed by the General Partner and AGM Credit Senior Management prior to the date hereof. 
“Award Letter” means, with respect to any Limited Partner, the letter agreement between the Partnership and such Limited Partner setting forth (i) such Limited Partner’s Points, (ii) such Limited Partner’s vesting schedule, (iii) the formula applied to calculate the Holdback Amount with respect to such Limited Partner, (iv) any restrictive covenants with respect to such Limited Partner, (v) the definition of “Bad Act,” (vi) the definition of “Designated Act,” and (vii) any other terms applicable to such Limited Partner.
“Bad Act” has the meaning ascribed to that term in a Limited Partner’s Award Letter.
“Book-Tax Difference” means the difference between the Carrying Value of a Partnership asset and its adjusted tax basis for United States federal income tax purposes, as determined at the time of any of the events described in the definition of Carrying Value, which for purposes of this Agreement shall include any accrued income in respect of securities contributed to or held (directly or indirectly) by the Partnership as of the date of any such event. The General Partner shall maintain an account in the name of each Limited Partner that reflects such Limited Partner’s share of any Book-Tax Difference.
“Capital Account” means with respect to each Partner the capital account established and maintained on behalf of such Partner as described in Section 3.3.
“Capital Loss” means, for each Fund with respect to any Fiscal Year, the portion of any Net Loss allocable to the Partnership, but only to the extent such allocation is made by such Fund to the Partnership in proportion to the Partnership’s capital contribution to such Fund, as determined pursuant to the applicable Fund LP Agreement. 
“Capital Profit” means, for each Fund with respect to any Fiscal Year, the portion of any Net Income allocable to the Partnership, but only to the extent such allocation is made by such Fund to the Partnership in proportion to the Partnership’s capital contribution to such Fund, as determined pursuant to the applicable Fund LP Agreement.
“Carried Interest Revenues” means distributions received by the Partnership pursuant to Sections 4.2(a)(iv)(A) and 4.2(a)(v)(A) (or the corresponding provisions) of the applicable Fund LP Agreement.
“Carrying Value” means, with respect to any Partnership asset, the asset’s adjusted basis for United States federal income tax purposes, except that the Carrying Values of all Partnership assets shall be adjusted to equal their respective fair market values (as determined by the General Partner), in accordance with the rules set forth in Treasury Regulations section 1.704-1(b)(2)(iv)(f), except as otherwise provided herein, immediately prior to:  (i) the date of the acquisition of any interests in the Partnership by any new Partner or any additional interests by an existing Partner in exchange for more than a de minimis capital contribution; (ii) the date of the distribution of more than a de minimis amount of any Partnership asset to a Partner, including cash as consideration for an interest in the Partnership; (iii) the date of the grant of more than a de minimis profits interest in the Partnership as consideration for the provision of services to or for the benefit of the Partnership by an existing Partner, or by a new Partner acting in his capacity as a Partner or in anticipation of becoming a Partner, including the issuance of Points to Partner Pool LP pursuant to the terms hereof; or (iv) the liquidation of the Partnership within the meaning of Treasury Regulations section 1.704-l(b)(2)(ii)(g); provided, that any adjustment pursuant to clauses (i), (ii) and (iii) above shall be made only if the General Partner reasonably determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Partners.  The Carrying Value of any Partnership asset distributed to any Partner shall be adjusted immediately prior to such distribution to equal its fair market value (as determined by the General Partner). The Carrying Value of any asset contributed by a Partner to the Partnership shall be the fair market value (as determined by the General Partner) of the asset at the date of its contribution.  The General Partner may treat any of the enumerated events in clauses (i) through (iv) hereof that actually occur at Partner Pool LP (or that may be deemed to occur at Partner Pool LP under the terms of the limited partnership agreement of Partner Pool LP, as in effect from time to time) as occurring at the Partnership for purposes of determining the Carrying Value of the Partnership’s assets.
“Catch Up Amount” means the product derived by multiplying (i) the amount of any Book-Tax Difference arising on the admission to the Partnership of a Newly-Admitted Limited Partner or a reallocation of Points described in Section 4.1(f)(ii) by (ii) the percentage derived by dividing the number of Points issued to the Newly-Admitted Limited Partner or reallocated to the applicable Limited Partner as described in Section 4.1(f)(ii), by the aggregate number of Points on the date the Newly-Admitted Limited Partner is admitted to the Partnership or the date of the applicable reallocation of Points pursuant to this Agreement.  The General Partner shall maintain an account in the name of each Newly-Admitted Limited Partner (and any Limited Partner receiving a reallocation of Points in respect of which Section 4.1(f)(ii) applies) that reflects such Limited Partner’s Catch Up Amount, which shall be adjusted as necessary to reflect any subsequent reduction in such Book-Tax Difference corresponding to any subsequent negative adjustments to Carrying Value of the Partnership’s assets that relate to such Book-Tax Difference, and which may be further adjusted to the extent the General Partner determines in its sole discretion is necessary to cause the Catch Up Amount to be equal to the amount necessary to provide the applicable Limited Partner with a requisite share of Partnership capital based on such Limited Partner’s Points in accordance with the terms of this Agreement and such Limited Partner’s Award Letter.
“Certificate” has the meaning set forth in Recital A.
“Clawback Payment” means any payment required to be made by the Partnership to any Fund pursuant to Section 10.3(c) (or the corresponding provision) of the Fund LP Agreement of such Fund.
“Clawback Share” means, as of the time of determination, with respect to any Limited Partner and any Clawback Payment a percentage of such Clawback Payment equal to the quotient (expressed as a percentage) of (a) the cumulative amount of Operating Profit attributable to the Fund in respect of which the Clawback Payment is required to be made that has been distributed to such Limited Partner, divided by (b) the cumulative amount so distributed to all Limited Partners with respect to such Operating Profit attributable to such Fund.
“Code” means the United States Internal Revenue Code of 1986, as amended and as hereafter amended, or any successor law.
“COF III” means (i) Apollo Credit Opportunity Fund III LP, a Delaware limited partnership, and/or (ii) Apollo Credit Opportunity Fund III (Offshore) LP, a Delaware limited partnership, as the context requires.
“Co-Investors (A)” means Apollo Credit Opportunity Co-Investors III (A), L.P., a Delaware limited partnership.
“Co-Investors (A) Partnership Agreement” means the Amended and Restated Agreement of Limited Partnership of Co-Investors (A), as in effect from time to time.
“Covered Person” has the meaning set forth in Section 5.7(a).
“Credit Business” has the meaning ascribed to that term in a Limited Partner’s Award Letter.
“DEUCC” has the meaning set forth in Section 6.5(c).
“Delaware Act” means the Delaware Revised Uniform Limited Partnership Act (6 Del. C. §§ 17-101 et seq.), as amended and in effect from time to time, or any successor law.
“Designated Act” has the meaning ascribed to that term in a Limited Partner’s Award Letter. 
“Discretionary Share” has the meaning set forth in Section 4.1(b).
“Disability” has the meaning ascribed to that term in the Apollo Global Management LLC 2007 Omnibus Equity Incentive Plan.
“FATCA” means:  (i) Sections 1471 to 1474 of the Code, and any associated legislation, regulations or guidance, or similar legislation, regulations or guidance enacted in any jurisdiction which seeks to implement similar tax reporting and/or withholding tax regimes; (ii) any intergovernmental agreement, treaty, regulation, guidance or any other agreement entered into in order to comply with, facilitate, supplement or implement the legislation, regulations or guidance described in clause (i); and (iii) any legislation, regulations or guidance in an applicable non-U.S. jurisdiction that give effect to the matters outlined in the preceding clauses.
“Final Adjudication” has the meaning set forth in Section 5.7(a).
“Fiscal Year” means, with respect to a year, the period commencing on January 1 of such year and ending on December 31 of such year (or on the date of a final distribution pursuant to Section 8.1(a)), unless the General Partner shall elect another fiscal year for the Partnership which is a permissible taxable year under the Code. 
“Fund” means COF III.  Such term also includes each alternative investment vehicle created by COF III, to the extent the context so requires.  
“Fund LP Agreement” means the limited partnership agreement of any Fund, as amended from time to time, and, to the extent the context so requires, the corresponding constituent agreement, certificate or other document governing each such Fund.
“General Partner” has the meaning set forth in the preamble, and includes any successor to the business of the General Partner in its capacity as general partner of the Partnership.
“Giveback Share” means, as of the time of determination, with respect to any Limited Partner and any Partner Giveback Payment, a percentage of such Partner Giveback Payment equal to the quotient (expressed as a percentage) of (a) the cumulative amount of Capital Profit and Operating Profit attributable to the Fund in respect of which the Partner Giveback Payment is required to be made that has been distributed to such Limited Partner, divided by (b) the cumulative amount so distributed to all Limited Partners with respect to such Capital Profit and Operating Profit attributable to such Fund.
“Governmental Authority” means: (i) any government or political subdivision thereof, whether non‐U.S. or U.S., national, state, county, municipal or regional; (ii) any agency or instrumentality of any such government, political subdivision or other government entity (including any central bank or comparable agency); and (iii) any court.
“Holdback Amount” has the meaning ascribed to that term in a Limited Partner’s Award Letter.
“Home Address” has the meaning set forth in Section 9.5.
“JAMS” has the meaning set forth in Section 9.8(b).
“Intermediate Pooling Vehicles” means Apollo CIP Hedge Funds, L.P., Apollo CIP Structured Credit, L.P., Apollo CIP European SMAs & CLOs, L.P., Apollo CIP Global SMAs, L.P. and Apollo CIP US SMAs, L.P., each a Cayman Islands exempted limited partnership.
“Limited Partner” means any Person admitted as a limited partner to the Partnership in accordance with this Agreement, including any Retired Partner, until such Person withdraws entirely as a limited partner of the Partnership, in his or her capacity as a limited partner of the Partnership.  All references herein to a Limited Partner shall be construed as referring collectively to such Limited Partner and to each Related Party of such Limited Partner (and to each Person of which such Limited Partner is a Related Party) that also is or that previously was a Limited Partner, except to the extent that the General Partner determines that the context does not require such interpretation as between such Limited Partner and his Related Parties.
“Losses” has the meaning set forth in Section 5.7(a).
“Manager” or “Investment Manager” has the meaning ascribed to that term in each of the Fund LP Agreements.
“Net Income” has the meaning ascribed to that term in each of the Fund LP Agreements.
“Net Loss” has the meaning ascribed to that term in each of the Fund LP Agreements.
“Newly-Admitted Limited Partner” has the meaning set forth in Section 4.1(f)(i). 
“Operating Loss” means, with respect to any Fiscal Year, any Net Loss, adjusted to exclude (a) any Capital Profit or Capital Loss and (b) the effect of any reorganization, restructuring or other capital transaction proceeds derived by the Partnership.  To the extent derived from any Fund, any items of income, gain, loss, deduction and credit shall be determined in accordance with the same accounting policies, principles and procedures applicable to the determination by the relevant Fund, and any items not derived from a Fund shall be determined in accordance with the accounting policies, principles and procedures used by the Partnership for U.S. federal income tax purposes.  Operating Loss shall not include any loss attributable to a Book-Tax Difference.
“Operating Profit” means, with respect to any Fiscal Year, any Net Income, adjusted to exclude (a) any Capital Profit or Capital Loss and (b) the effect of any reorganization, restructuring or other capital transaction proceeds derived by the Partnership.  To the extent derived from any Fund, any items of income, gain, loss, deduction and credit shall be determined in accordance with the same accounting policies, principles and procedures applicable to the determination by the relevant Fund, and any items not derived from a Fund shall be determined in accordance with the accounting policies, principles and procedures used by the Partnership for U.S. federal income tax purposes.  Operating Profit shall not include any income or gain attributable to a Book-Tax Difference.
“Other Agreements” has the meaning set forth in Section 9.3(b).
“Other Phantom Operating Profit” has the meaning set forth in Section 3.4(a).
“Partner” means the General Partner or any of the Limited Partners, and “Partners” means the General Partner and all of the Limited Partners.
“Partner Giveback Payment” means any payment required to be made by the Partnership to any Fund pursuant to Section 6.5(c) (or the corresponding provision) of the Fund LP Agreement of such Fund.
“Partner Pool LP” has the meaning set forth in the preamble.
“Partnership” has the meaning set forth in the preamble.
“Person” means any individual, partnership (whether or not having separate legal personality), corporation, limited liability company, joint venture, joint stock company, unincorporated organization or association, trust (including the trustees thereof, in their capacity as such), government, governmental agency, political subdivision of any government, or other entity. 
“Phantom Operating Profit Limitation” has the meaning set forth in Section 3.4(a).
“Point” means a share of Operating Profit or Operating Loss. The aggregate number of Points available for assignment to all Partners shall be 2,000. 
“Portfolio Company” has the meaning ascribed to that term in each of the Fund LP Agreements.
“Portfolio Investment” has the meaning ascribed to that term in each of the Fund LP Agreements.
“Professionals LP” has the meaning set forth in the preamble.
“Public Vehicles” means (i) Apollo Investment Corporation (NASDAQ: AINV); (ii) Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI); (iii) Apollo Residential Mortgage, Inc. (NYSE: AMTG); and (iv) Apollo Tactical Income Fund Inc. (NYSE: AIF).
“Reference Rate” means the interest rate announced publicly from time to time by JPMorgan Chase Bank in New York, New York as such bank’s prime rate. 
“Register of Partners” means a register of partners to be maintained by the General Partner showing the following information with respect to each Partner:  name, address, date of admission and retirement and required capital contribution (if any).
“Related Party” means, with respect to any Limited Partner:
(a)    any spouse, child, parent or other lineal descendant of such Limited Partner or such Limited Partner’s parent, or any natural Person who occupies the same principal residence as such Limited Partner; 
(b)    any trust or estate in which such Limited Partner and any Related Party or Related Parties (other than such trust or estate) collectively have more than 80% of the beneficial interests (excluding contingent and charitable interests);
(c)    any entity of which such Limited Partner and any Related Party or Related Parties (other than such entity) collectively are beneficial owners of more than 80% of the equity interest; and
(d)    any Person with respect to whom such Limited Partner is a Related Party.
“Required Commitment” has the meaning ascribed to that term in a Limited Partner’s Award Letter.
“Retired Partner” means any Limited Partner who has become a retired partner in accordance with or pursuant to Section 7.2.
“Retirement Date” means, with respect to any Limited Partner, the date as of which such Person becomes a Retired Partner.
“Safe Harbor” means the election described in the Safe Harbor Regulation, pursuant to which a partnership and all of its partners may elect to treat the fair market value of a partnership interest that is transferred in connection with the performance of services as being equal to the liquidation value of that interest.
“Safe Harbor Election” means the election by a partnership and its partners to apply the Safe Harbor, as described in the Safe Harbor Regulation and IRS Notice 2005-43, issued on May 20, 2005.
“Safe Harbor Regulation” means Proposed Regulations Section 1.83-3(l) issued on May 24, 2005.
“Team Member” has the meaning ascribed to that term in a Limited Partner’s Award Letter.
“Transfer” means any direct or indirect sale, exchange, transfer, assignment or other disposition by a Partner of any or all of his or her interest in the Partnership or an economic benefit thereof (whether with respect to, for example, economic rights only or all the rights associated with the interest) to another Person, whether voluntary or involuntary.
“Vested Points” means, with respect to any Limited Partner (other than Partner Pool LP and Professionals LP), as of the date of determination, such Limited Partner’s Points that have vested, as calculated in accordance with the provisions set forth in such Limited Partner’s Award Letter.
(b)    The headings in this Agreement are inserted for convenience of reference only and shall not affect the interpretation of this Agreement.  As used herein, masculine pronouns shall include the feminine and neuter, neuter pronouns shall include the masculine and the feminine, and the singular shall be deemed to include the plural.  The use of the word “including” herein shall not be considered to limit the provision which it modifies but instead shall mean “including, without limitation.”
(c)    As used in this Agreement, the phrases “any provision of this Agreement,” “the provisions of this Agreement” and derivative or similar phrases, and the terms “hereof,” “herein,” “hereby” and derivative or similar words, shall mean or refer only to any express provision actually written in this Agreement and not to any provision of the Delaware Act that may have application to the Partnership.
ARTICLE 2     
FORMATION AND ORGANIZATION
Section 2.1    Formation
The Partnership was formed and is hereby continued as a limited partnership under and pursuant to the Delaware Act.  The General Partner shall execute, acknowledge and file any amendments to the Certificate as may be required by the Delaware Act, and any other instruments, documents and certificates which, in the opinion of the Partnership’s legal counsel, may from time to time be required by the laws of the State of Delaware, the United States of America or any other jurisdiction in which the Partnership shall determine to do business, or any political subdivision or agency thereof, or which such legal counsel may deem necessary or appropriate to effectuate, implement and continue the valid and subsisting existence and business of the Partnership.
Section 2.2    Name
The name of the Partnership shall be “Apollo Credit Opportunity Advisors III (APO FC) LP” or such other name as the General Partner hereafter may adopt upon causing an appropriate amendment to be made to this Agreement and to the Certificate to be filed in accordance with the Delaware Act.  The General Partner shall give notice of any name change to each Limited Partner.
Section 2.3    Principal Offices; Registered Office and Agent 
(a)    The Partnership shall maintain its principal office, and may maintain one or more additional offices, at such place or places as the General Partner may from time to time determine.
(b)    The General Partner shall arrange for the Partnership to have and maintain in the State of Delaware, at the expense of the Partnership, a registered office and registered agent for service of process on the Partnership as required by the Delaware Act.
Section 2.4    Term of Partnership
(a)    The term of the Partnership shall continue until the dissolution (without continuation) of all of the Funds or the earliest of: 
(i)    at any time there are no Limited Partners, unless the business of the Partnership is continued in accordance with the Delaware Act; 
(ii)    the occurrence of any event that results in the General Partner’s ceasing to be a general partner of the Partnership under the Delaware Act; provided that the Partnership shall not be dissolved or required to be wound up in connection with any such event if (A) at the time of the occurrence of such event there is at least one remaining general partner of the Partnership who is hereby authorized to and does carry on the business of the Partnership, or (B) within 90 days after notice of the occurrence of such event, a majority of the Limited Partners agree in writing or vote to continue the business of the Partnership and to the appointment, effective from the date of such event, if required, of one or more additional general partners of the Partnership; or
(iii)    the entry of a decree of judicial dissolution under Section 17-802 of the Delaware Act. 
(b)    The parties agree that irreparable damage would be done to the Partnership and reputation of the Partners if any Limited Partner should bring an action to dissolve the Partnership.  Care has been taken in this Agreement to provide for fair and just payment in liquidation of the interests of all Partners.  Accordingly, to the fullest extent permitted by law, each Limited Partner hereby waives and renounces his right to seek a decree of dissolution or to seek the appointment of a liquidator for the Partnership, except as expressly provided herein.
Section 2.5    Purpose of the Partnership
The principal purpose of the Partnership is to act as the sole general partner of each of the Funds pursuant to their respective Fund LP Agreements and to undertake such related and incidental activities and execute and deliver such related documents necessary or incidental thereto.  
Section 2.6    Actions by Partnership
The Partnership may execute, deliver and perform, and the General Partner may execute and deliver, all contracts, agreements and other undertakings, and engage in all activities and transactions as may in the opinion of the General Partner be necessary or advisable to carry out the objects and purposes of the Partnership, without the approval or vote of any Limited Partner.
Section 2.7    Admission of Limited Partners
On the date hereof, the Persons whose names are set forth in the Register of Partners under the caption “Limited Partners” shall be admitted to the Partnership or shall continue, as the case may be, as Limited Partners of the Partnership upon their execution of a counterpart of this Agreement or such other instrument evidencing, to the satisfaction of the General Partner, such Limited Partner’s intent to become a Limited Partner.  Additional Limited Partners may be admitted to the Partnership in accordance with Section 6.1.
ARTICLE 3     
CAPITAL
Section 3.1    Contributions to Capital
(a)    Subject to the remaining provisions of this Section 3.1, (i) any required contribution of a Limited Partner to the capital of the Partnership shall be as set forth in the Register of Partners, and (ii) any such contributions to the capital of the Partnership shall be made as of the date of admission of such Limited Partner as a limited partner of the Partnership and as of each such other date as may be specified by the General Partner.  Except as otherwise permitted by the General Partner, all contributions to the capital of the Partnership by each Limited Partner shall be payable exclusively in cash.  
(b)    APH shall make capital contributions from time to time to the extent necessary to ensure that the Partnership meets its obligations to make contributions of capital to each of the Funds.
(c)    No Partner shall be obligated, nor shall any Partner have any right, to make any contribution to the capital of the Partnership, except as may be agreed from time to time between such Partner and the General Partner (including in an Award Letter) and other than as specified in this Section 3.1.  No Limited Partner shall be obligated to restore any deficit balance in his Capital Account.
(d)    To the extent, if any, that at the time of the Final Distribution (as defined in each of the Fund LP Agreements) or at any time prior thereto (whether pursuant to the provisions of the applicable Fund LP Agreement, upon the determination of the Partnership or otherwise), it is determined that the Partnership, as a general partner of each of the Funds, is required to make any Clawback Payment with respect to any of the Funds, each Limited Partner shall be required to participate in such payment and contribute to the Partnership, for ultimate distribution to the limited partners of the relevant Fund, an amount equal to such Limited Partner’s Clawback Share of any Clawback Payment, but not in any event, together with any Partner Giveback Payments made by such Limited Partner from the return of distributions of Operating Profit attributable to such Fund, in excess of the cumulative amount theretofore distributed to such Limited Partner with respect to the Operating Profit attributable to such Fund.  For purposes of determining each Limited Partner’s required contribution, each Limited Partner’s allocable share of any Escrow Account (as defined in the Fund LP Agreements), to the extent applied to satisfy any portion of a Clawback Payment, shall be treated as if it had been distributed to such Limited Partner and re-contributed by such Limited Partner pursuant to this Section 3.1(d) at the time of such application.  The Partners acknowledge that the Clawback Payment is calculated under the applicable Fund LP Agreement on an after-tax basis, and that accordingly each Limited Partner’s Clawback Share will be of an amount that has already taken into account hypothetical taxes that an individual residing in New York City would have owed in respect of the excess carry received by the Partnership under the applicable Fund LP Agreement that gives rise to the Clawback Payment.
(e)    To the extent, if any, that it is determined that the Partnership is required to make any Partner Giveback Payment with respect to any of the Funds, each Limited Partner shall be required to participate in such payment and contribute to the Partnership, for ultimate contribution to the relevant Fund, an amount equal to such Limited Partner’s Giveback Share of any Partner Giveback Payment, but not in any event, together with any Clawback Payments made by such Limited Partner with respect to such Fund, in excess of the cumulative amount theretofore distributed to such Limited Partner with respect to the Capital Profit and Operating Profit attributable to such Fund.
(f)    For the avoidance of doubt, the aggregate Clawback Payments and Partner Giveback Payments required to be made by the Limited Partners hereunder with respect to any Fund shall not exceed the aggregate amount of distributions actually received by the Partnership that: (i) in the case of Clawback Payments, are attributable to Carried Interest Revenues; and (ii) in the case of Partner Giveback Payments, are attributable to Carried Interest Revenues and any other distributions that the Partnership receives from such Fund.
Section 3.2    Rights of Partners in Capital
(c)    No Partner shall be entitled to interest on his capital contributions to the Partnership.
(d)    No Partner shall have the right to distributions or the return of any contribution to the capital of the Partnership except (i) for distributions in accordance with Section 4.1, or (ii) upon dissolution of the Partnership.  The entitlement to any such return at such time shall be limited to the value of the Capital Account of the Partner.  The General Partner shall not be liable for the return of any such amounts.
Section 3.3    Capital Accounts
(c)    The Partnership shall maintain for each Partner a separate Capital Account in accordance with the provisions of Treas. Reg. Section 1.704-1(b)(2)(iv) and, to the extent consistent with such provisions, the terms of this Agreement.
(d)    Each Partner’s Capital Account shall have an initial balance equal to the amount of cash and the net value of any securities or other property constituting such Partner’s initial contribution to the capital of the Partnership.
(e)    Each Partner’s Capital Account shall be increased by the sum of:
(i)    the amount of cash and the net value of any securities or other property constituting additional contributions by such Partner to the capital of the Partnership permitted pursuant to Section 3.1; plus
(ii)    in the case of APH, any Capital Profit allocated to such Partner’s Capital Account pursuant to Section 3.4; plus
(iii)    the portion of any Operating Profit allocated to such Partner’s Capital Account pursuant to Section 3.4; plus
(iv)    such Partner’s allocable share of any decreases in any reserves recorded by the Partnership pursuant to Section 3.8 and any receipts determined to be applicable to a prior period pursuant to Section 3.8(b), to the extent the General Partner determines that, pursuant to any provision of this Agreement, such item is to be credited to such Partner’s Capital Account on a basis which is not in accordance with the current respective Points of all Partners; plus
(v)    such Partner’s allocable share of any increase in Book-Tax Difference.
(f)    Each Partner’s Capital Account shall be reduced by the sum of (without duplication):
(i)    in the case of APH, any Capital Loss allocated to such Partner’s Capital Account pursuant to Section 3.4; plus
(ii)    the portion of any Operating Loss allocated to such Partner’s Capital Account pursuant to Section 3.4; plus
(iii)    the amount of any cash and the net value of any property distributed to such Partner pursuant to Section 4.1 or Section 8.1, including any amount deducted pursuant to Section 4.2 or Section 5.4 from any such amount distributed; plus
(iv)    any withholding taxes or other items payable by the Partnership and allocated to such Partner pursuant to Section 5.4(b), any increases in any reserves recorded by the Partnership pursuant to Section 3.8  and any payments determined to be applicable to a prior period pursuant to Section 3.8(b), to the extent the General Partner determines that, pursuant to any provision of this Agreement, such item is to be charged to such Partner’s Capital Account on a basis which is not in accordance with the current respective Points of all Partners; plus
(v)    such Partner’s allocable share of any decrease in Book-Tax Difference.
(g)    If securities and/or other property are to be distributed in kind to the Partners or Retired Partners, including in connection with a liquidation pursuant to Section 8.1, they shall first be written up or down to their fair market value as of the date of such distribution, thus creating gain or loss for the Partnership, and the value of the securities and/or other property received by each Partner and each Retired Partner as so determined shall be debited against such Person’s Capital Account at the time of distribution.
Section 3.4    Allocation of Profit and Loss
(a)    Capital Profit and Operating Profit or Capital Loss and Operating Loss for any Fiscal Year shall be allocated to the Partners so as to produce Capital Accounts for the Partners (such Capital Accounts computed after taking into account any other Capital Profit and Operating Profit or Capital Loss and Operating Loss for the Fiscal Year in which such event occurred and all distributions pursuant to Article 4 with respect to such Fiscal Year and after adding back each Partner’s share, if any, of Partner Nonrecourse Debt Minimum Gain, as defined in Treasury Regulations Sections 1.704 - 2(b)(2) and 1.704 - 2(i), or Partnership Minimum Gain, as defined in Treasury Regulations Sections 1.704 - 2(b)(2) and 1.704 - 2(d)) such that a distribution of an amount of cash and value of property equal to such Capital Account balances in accordance with such Capital Account balances would be in the amounts, sequence and priority set forth in Article 4; provided, however, that, (i) except as the General Partner in its sole discretion may otherwise determine, allocations of Operating Profit to Professionals LP shall not exceed the amount of cash (or value of property) distributed to Professionals LP for the Fiscal Year (the “Phantom Operating Profit Limitation”) and any Operating Profit in excess of the Phantom Operating Profit Limitation that would have been allocable to Professionals LP but for the Phantom Operating Profit Limitation instead shall be allocated pro rata to the other Limited Partners (other than APH); (ii) the General Partner may, in its sole discretion, determine to specially allocate solely to APH such excess Operating Profit and any additional amounts of Operating Profit that the General Partner determines are in excess of the cash and value of property received by the Partnership for the Fiscal Year (“Other Phantom Operating Profit”); and (iii) the General Partner may allocate Operating Profit and Operating Loss and items thereof in such other manner as it determines in its sole discretion to be appropriate to reflect the Partners’ interests in the Partnership.  Income, gains and loss associated with a Book-Tax Difference shall be allocated to the Limited Partners that are entitled to a share of such Book-Tax Difference consistent with the account maintained by the General Partner pursuant to the definition of “Book-Tax Difference” and in the manner in which cash or property associated with such Book-Tax Difference is required to be distributed pursuant to the proviso of Section 4.1(b). 
(b)    Following a special allocation of Operating Profit to the Limited Partners pursuant to the provisos of Section 3.4(a), appropriate adjustments shall be made to the allocation of Operating Profit and Operating Loss to the Limited Partners (including Professionals LP) in one or more subsequent Fiscal Years as the General Partner may determine, in its sole discretion, may be necessary to ensure that the Limited Partners are allocated aggregate Operating Profit (in excess of aggregate Operating Loss) for all Fiscal Years in proportion to their respective Points and (in the case of Professionals LP) Discretionary Share for all such Fiscal Years.   
(c)    To the extent that the allocations of Capital Loss or Operating Loss contemplated by Section 3.4(a) would cause the Capital Account of any Limited Partner to be less than zero, such Capital Loss or Operating Loss shall to that extent instead be allocated to and debited against the Capital Account of the General Partner (or, at the direction of the General Partner, to those Limited Partners who are members of the General Partner in proportion to their limited liability company interests in the General Partner).  Following any such adjustment pursuant to this Section 3.4(c) with respect to any Limited Partner, any Capital Profit or Operating Profit for any subsequent Fiscal Year which would otherwise be credited to the Capital Account of such Limited Partner pursuant to Section 3.4(a) shall instead be credited to the Capital Account of the General Partner (or relevant Limited Partners) until the cumulative amounts so credited to the Capital Account of the General Partner (or relevant Limited Partners) with respect to such Limited Partner pursuant to this Section 3.4(c) is equal to the cumulative amount debited against the Capital Account of the General Partner (or relevant Limited Partners) with respect to such Limited Partner pursuant to this Section 3.4(c).
(d)    Each Limited Partner’s rights and entitlements as a Limited Partner are limited to the rights to receive allocations and distributions of Capital Profit and Operating Profit expressly conferred by this Agreement and any Other Agreement entered into pursuant to Section 9.3(b) and the other rights expressly conferred by this Agreement and any such Other Agreement or required by the Delaware Act, and a Limited Partner shall not be entitled to any other allocations, distributions or payments in respect of his interest, or to have or exercise any other rights, privileges or powers.
(e)    For purposes of Section 3.4(a), the General Partner may determine in its sole discretion to allocate any increase in value of the Partnership’s assets pursuant to the definition of “Carrying Value” solely to the Limited Partners that are entitled to a Catch Up Amount (pro rata based on any method the General Partner determines is reasonable), or to specially allocate Operating Profit to such Limited Partners, or a combination thereof, until such Limited Partners have received an allocation equal to the Catch Up Amount.
(f)    Operating Profit and Operating Loss shall be determined on a daily, monthly or other basis, as reasonably approved by the General Partner using any permissible method under Section 706 and the Treasury Regulations thereunder.  If any Limited Partner shall be admitted to the Partnership, retire from the Partnership or assigned additional Points at different times during the Partnership’s Fiscal Year, Operating Profit or Operating Loss shall be allocated among the Limited Partners on such proper basis as the General Partner shall determine consistent with the applicable requirements under Section 706 of the Code.
Section 3.5    Tax Allocations
(a)    For United States federal, state and local income tax purposes, Partnership income, gain, loss, deduction or credit (or any item thereof) for each Fiscal Year shall be allocated to and among the Partners in order to reflect the allocations of Capital Profit, Capital Loss, Operating Profit and Operating Loss pursuant to the provisions of Section 3.4 for such Fiscal Year; provided that any taxable income or loss associated with any Book-Tax Difference shall be allocated for tax purposes in accordance with the principles of Section 704(c) of the Code in any such manner (as is permitted under that Code Section and the Treasury Regulations promulgated thereunder) as determined by the General Partner in its sole discretion.
(b)    If any Partner or Partners are treated for United States federal income tax purposes as realizing ordinary income because of receiving interests in the Partnership (whether under Section 83 of the Code or under any similar provision of any law, rule or regulation) and the Partnership is entitled to any offsetting deduction (net of any income realized by the Partnership as a result of such receipt), the Partnership’s net deduction shall be allocated to and among the Partners in such manner as to offset, as nearly as possible, the ordinary income realized by such Partner or Partners.
Section 3.6    Tax Treatment of Points  
(a)    The Partnership and each Partner agree to treat the Points and (in the case of Professionals LP) Discretionary Share issued to the Limited Partners other than APH as a “Profits Interest” with respect to the Partnership within the meaning of Rev. Proc. 93-27, 1993-2 C.B. 343.  In accordance with Rev. Proc. 2001-43, 2001-2 C.B. 191, the Partnership shall treat such a Limited Partner holding Points or Discretionary Share as the owner of such Points and Discretionary Share from the date such Points or Discretionary Share are issued, and shall file its IRS form 1065, and issue appropriate Schedule K-1s to such Limited Partner, allocating to such Limited Partner its distributive share of all items of income, gain, loss, deduction and credit associated with such Points or Discretionary Share as if they were fully vested.  Each such Limited Partner agrees to take into account such distributive share in computing its United States federal income tax liability for the entire period during which it holds the Points or Discretionary Share.  Except as required pursuant to a “Determination” as defined in Section 1313(a) of the Code, none of the Partnership or any Partner shall claim a deduction (as wages, compensation or otherwise) for the fair market value of such Points or (in the case of Professionals LP) Discretionary Share issued to a Limited Partner in respect of the Partnership, either at the time of grant of the Points or Discretionary Share, or at the time the Points or Discretionary Share become substantially vested.  The undertakings contained in this Section 3.6 shall be construed in accordance with Section 4 of Rev. Proc. 2001-43.  The provisions of this Section 3.6 shall apply regardless of whether or not the holder of Points or Discretionary Share files an election pursuant to Section 83(b) of the Code.  This Section 3.6 shall only apply to Points and Discretionary Share granted while Rev. Proc. 93-27, 1993-2 C.B. 343 and Rev. Proc. 2001-43, 2001-2 C.B. 191, remain in effect.  
(b)    The Partners agree that, in the event the Safe Harbor Regulation is finalized, the Partnership shall be authorized and directed to make the Safe Harbor Election, and the Partnership and each Partner (including any Person to whom an interest in the Partnership is transferred in connection with the performance of services) agrees to comply with all requirements of the Safe Harbor with respect to all interests in the Partnership transferred in connection with the performance of services while the Safe Harbor Election remains effective.  The General Partner shall be authorized to (and shall) prepare, execute, and file the Safe Harbor Election.  The General Partner shall cause the Partnership to make any allocations of items of income, gain, loss, deduction or expense (including forfeiture allocations) necessary or appropriate to effectuate and maintain the Safe Harbor Election.
Section 3.7    FATCA
(a)    Each Limited Partner:
(vi)    shall provide, in a timely manner, such information regarding the Limited Partner and its beneficial owners and such forms or documentation as may be requested from time to time by the General Partner or the Partnership to enable the Partnership to comply with the requirements and obligations imposed on it pursuant to FATCA;
(vii)    acknowledges that any such forms or documentation requested by the Partnership or its agents pursuant to clause (i), or any financial or account information with respect to the Limited Partner’s investment in the Partnership, may be disclosed to any Governmental Authority which collects information in accordance with FATCA and to any withholding agent where the provision of that information is required by such agent to avoid the application of any withholding tax on any payments to the Partnership;
(viii)    shall waive, and/or shall cooperate with the Partnership to obtain a waiver of, the provisions of any law which prohibits the disclosure by the Partnership, or by any of its agents, of the information or documentation requested from the Limited Partner pursuant to clause (i), prohibits the reporting of financial or account information by the Partnership or its agents required pursuant to FATCA or otherwise prevents compliance by the Partnership with its obligations under FATCA;
(ix)    acknowledges that, if it provides information and documentation that is in anyway misleading, or it fails to provide the Partnership or its agents with the requested information and documentation necessary, in either case, to satisfy the Partnership’s obligations under FATCA, the Partnership may (whether or not such action or inaction leads to compliance failures by the Partnership, or a risk of the Partnership or its investors being subject to withholding tax or other penalties under FATCA) take any action and/or pursue all remedies at its disposal, including compulsory withdrawal of the Limited Partner, and may hold back from any withdrawal proceeds, or deduct from the Limited Partner’s Capital Account, any liabilities, costs, expenses or taxes caused (directly or indirectly) by the Limited Partner’s action or inaction; and
(x)    shall have no claim against the Partnership, or its agents, for any form of damages or liability as a result of actions taken or remedies pursued by or on behalf of the Partnership in order to comply with FATCA.
(b)    Each Limited Partner hereby indemnifies the General Partner and the Partnership and each of their respective partners, members, managers, officers, directors, employees and agents and holds them harmless from and against any FATCA-related liability, action, proceeding, claim, demand, costs, damages, expenses (including legal expenses), penalties or taxes whatsoever which such Person may incur as a result of any action or inaction (directly or indirectly) of such Limited Partner (or any Related Party) described in Sections 3.7(a)(i) through (iv).  This indemnification shall survive the Limited Partner’s death or disposition of its interests in the Partnership.
Section 3.8    Reserves; Adjustments for Certain Future Events
(a)    Appropriate reserves may be created, accrued and charged against the Operating Profit or Operating Loss for contingent liabilities, if any, as of the date any such contingent liability becomes known to the General Partner or as of each other date as the General Partner deems appropriate, such reserves to be in the amounts which the General Partner deems necessary or appropriate.  The General Partner may increase or reduce any such reserve from time to time by such amounts as the General Partner deems necessary or appropriate.  The amount of any such reserve, or any increase or decrease therein, shall be proportionately charged or credited, as appropriate, to the Capital Accounts of those Persons who are Partners at the time when such reserve is created, increased or decreased, as the case may be, in proportion to their respective Points at such time; provided that, if any individual reserve item, as adjusted by any increase therein, exceeds the lesser of $500,000 or 1% of the aggregate Capital Account balances of all such Partners, the amount of such reserve, increase or decrease shall instead be charged or credited to those Persons who were Partners at the time, as determined by the General Partner, of the act or omission giving rise to the contingent liability for which the reserve item was established in proportion to their respective Points at that time.  The amount of any such reserve charged against the Capital Account of a Partner shall reduce the distributions such Partner would otherwise be entitled to under Section 4.1 or Section 8.1 hereof; and the amount of any such reserve credited to the Capital Account of a Partner shall increase the distributions such Partner would otherwise be entitled to under Section 4.1 or Section 8.1 hereof.
(b)    If at any time an amount is paid or received by the Partnership and such amount exceeds the lesser of $500,000 or 1% of the aggregate Capital Account balances of all Partners at the time of payment or receipt, and such amount was not accrued or reserved for but would nevertheless, in accordance with the Partnership’s accounting practices, be treated as applicable to one or more prior periods, then such amount may be proportionately charged or credited by the General Partner, as appropriate, to those Persons who were Partners during such prior period or periods, based on each such Partner’s Points for such applicable period.
(c)    If any amount is required by Section 3.8(a) or (b) to be credited to a Person who is no longer a Partner, such amount shall be paid to such Person in cash, with interest from the date on which the General Partner determines that such credit is required at the Reference Rate in effect on that date.  Any amount required to be charged pursuant to Section 3.8(a) or (b) shall be debited against the current balance in the Capital Account of the affected Partners. To the extent that the aggregate current Capital Account balances of such affected Partners are insufficient to cover the full amount of the required charge, the deficiency shall be debited against the Capital Accounts of the other Partners in proportion to their respective Capital Account balances at such time; provided that each such other Partner shall be entitled to a preferential allocation, in proportion to and to the extent of such other Partner’s share of any such deficiency, together with a carrying charge at a rate equal to the Reference Rate, of any Operating Profit that would otherwise have been allocable after the date of such charge to the Capital Accounts of the affected Partners whose Capital Accounts were insufficient to cover the full amount of the required charge. In no event shall a current or former Partner be obligated to satisfy any amount required to be charged pursuant to Section 3.8(a) or (b) other than by means of a debit against such Partner’s Capital Account.
Section 3.9    Finality and Binding Effect of General Partner’s Determinations
All matters concerning the determination, valuation and allocation among the Partners with respect to any profit or loss of the Partnership and any associated items of income, gain, deduction, loss and credit, pursuant to any provision of this Article 3, including any accounting procedures applicable thereto, shall be determined by the General Partner unless specifically and expressly otherwise provided for by the provisions of this Agreement, and such determinations and allocations shall be final and binding on all the Partners.
Section 3.10    Alternative GP Vehicles
If the General Partner determines that for legal, tax, regulatory or other reasons (a) any investment or other activities of a Fund should be conducted through one or more parallel funds or other alternative investment vehicles as contemplated by the applicable Fund LP Agreement, (b) any of such separate entities comprising the Fund should be managed or controlled by one or more separate entities serving as a general partner or in a similar capacity (each, an “Alternative GP Vehicle”), and (c) some or all of the Partners should participate through any such Alternative GP Vehicle, the General Partner may require any or all of the Partners, as determined by the General Partner, to participate directly or indirectly through any such Alternative GP Vehicle and to undertake such related and incidental activities and execute and deliver such related documents necessary or incidental thereto with and/or in lieu of the Partnership, and the General Partner shall have all necessary authority to implement such Alternative GP Vehicle; provided that to the maximum extent practicable and subject to applicable legal, tax, regulatory or similar technical reasons, each Partner shall have the same economic interest in all material respects in an Alternative GP Vehicle formed pursuant to this Section 3.10 as such Partner would have had if it had participated in all Portfolio Investments through the Partnership, and the terms of such Alternative GP Vehicle shall be substantially the same in all material respects to those of the Partnership and this Agreement.  Each Partner shall take such actions and execute such documents as the General Partner determines are reasonably needed to accomplish the foregoing.
ARTICLE 4     
DISTRIBUTIONS
Section 4.1    Distributions
(e)    Any amount of cash or property received as a distribution from any of the Funds by the Partnership in its capacity as a partner, to the extent such amount is determined by reference to the capital commitment of the Partnership in, or the capital contributions of the Partnership to, any of the Funds, shall be promptly distributed by the Partnership to APH.
(f)    The General Partner shall use reasonable efforts to cause the Partnership to distribute, on a quarterly basis, any available cash or property attributable to items included in the determination of Operating Profit and Book-Tax Difference, subject to the provisions of the Fund LP Agreements relating to Final Distributions on the dissolution or termination of a Fund and subject to the retention of such reserves as the General Partner considers appropriate for purposes of the prudent and efficient financial operation of the Partnership’s business including in accordance with Section 3.8.  The General Partner shall determine in its sole discretion for each Fiscal Year the proportion (expressed as a percentage) of the cash and value of property available for distribution to the Limited Partners that shall be distributable to Professionals LP for the Fiscal Year (the “Discretionary Share”) in addition to any amounts distributable on the Points held by Professionals LP pursuant to this Article 4.  Distributions when made shall be made to the Limited Partners as follows (before adjustment for Holdback Amounts):
(xi)    the APH Percentage to APH;
(xii)    to Professionals LP, until it has received an amount equal to the Discretionary Share; and
(xiii)    the balance to the Limited Partners (other than APH) pro rata in accordance with their Points, determined:
(A)    in the case of any amount of cash or property received from any of the Funds that is attributable to the disposition of a Portfolio Investment by such Fund, as of the date of such disposition by such Fund; and
(B)    in any other case, as of the date of receipt of such cash or property by the Partnership;
provided, however, that any cash or other property that the General Partner determines is attributable to a Book-Tax Difference in the Partnership assets shall be distributed to the Limited Partners that are entitled to a share of such Book-Tax Difference pursuant to the definition of “Book-Tax Difference,” with any such distribution to be in the proportion that each such Limited Partner’s allocated share of the applicable Book-Tax Difference bears to the total Book-Tax Difference of the asset giving rise to the cash or property.
Notwithstanding the foregoing, the General Partner shall retain from the distribution amount apportioned to each Limited Partner (other than APH, Partner Pool LP and Professionals LP) pursuant to this Section 4.1(b) any Holdback Amount with respect to such Limited Partner, determined in accordance with such Limited Partner’s Award Letter. Any Holdback Amount retained by the General Partner pursuant to this Section 4.1(b) shall be considered to have been distributed to the Limited Partners for all purposes of this Agreement.
(g)    Distributions of amounts attributable to Operating Profit and Book-Tax Difference shall be made in cash; provided, however, that if the Partnership receives a distribution from a Fund in the form of property other than cash, the General Partner may distribute such property in kind to Partners in proportion to their respective Points. 
(h)    Any distributions or payments in respect of the interests of Limited Partners unrelated to Capital Profit, Operating Profit or Book-Tax Difference shall be made at such time, in such manner and to such Limited Partners as the General Partner shall determine.
(i)    Except as otherwise set forth in a Limited Partner’s Award Letter, a Retired Partner shall receive his share of any distribution made pursuant to Section 4.1(b) with respect to which such Retired Partner received an allocation prior to his becoming a Retired Partner in accordance with Section 3.4, which distribution shall be made at the same time and in the same form as such distribution is made to the Limited Partners.
(j)    (%4)  Except as the General Partner otherwise may determine pursuant to the terms of an Award Letter, any Limited Partner whose admission to the Partnership causes an adjustment to Carrying Values pursuant to the definition of “Carrying Value” (a “Newly-Admitted Limited Partner”) shall have the right to receive a special distribution of the Catch Up Amount (before adjustment for Holdback Amounts).   Any such special distribution of the Catch Up Amount shall be in addition to the distributions to which the  Newly-Admitted Limited Partner is entitled pursuant to Section 4.1(b), and shall be made to the Newly-Admitted Limited Partner (or, if there is more than one such Newly-Admitted Limited Partner, pro rata to all such Newly-Admitted Limited Partners based on the aggregate amount of such distributions each such Newly-Admitted Limited Partner has not yet received), after distribution of any amounts attributable to any Book-Tax Difference pursuant to the proviso of Section 4.1(b), from amounts otherwise distributable pursuant to Section 4.1(b) to APH (or other Limited Partners, as the case may be), and shall reduce the amounts distributable pursuant to Section 4.1(b) to APH (or such other Limited Partners), until each applicable Newly-Admitted Limited Partner has received an amount equal to the applicable Catch Up Amount (before adjustment for Holdback Amounts).
(i)    The General Partner may determine to provide for a special distribution of a Catch Up Amount in connection with a reallocation of Points pursuant to Article 7 other than in connection with the admission to the Partnership of a Newly-Admitted Limited Partner if the General Partner reasonably believes such an adjustment to Carrying Values is required in order for the reallocated Points to be treated as profits interests for U.S. federal income tax purposes.
(ii)    Any reallocation of Points pursuant to Article 7 shall include the right to receive any Catch Up Amount associated with such Points.
(k)    The General Partner may reduce (but not below zero) the amounts distributable to the Limited Partners (other than APH) pursuant to Section 4.1(b) by the aggregate amount of any payment (or commitment to make such payment) by any Affiliate of the Partnership to an employee of such Affiliate, if the General Partner determines that such payments (or commitments) are in respect of services provided by the employee to such Affiliate in connection with the Credit Business; provided that no such reduction shall occur by reason of the payment of the Fee Payments (as defined in and) provided for in any award letter issued to a direct or indirect limited partner of Partner Pool LP or any of the Intermediate Pooling Vehicles or of the payment of other similar compensation, salary or bonus amounts that any such employee receives without regard to his interests in, treatment similar to that of a member or limited partner of, or admission to, the Partnership, Partner Pool LP or any general partner, managing member, manager or similar Person of any pooled investment vehicle or managed account that, directly or indirectly, makes allocations of incentive allocations to Partner Pool LP.  The amount of any such reduction instead shall be distributed solely to APH.  
(l)    Any cash or property that the General Partner determines is attributable to the allocation of Operating Profit to the Limited Partners (other than Professionals LP) due to the Phantom Operating Profit Limitation or to the allocation of Other Phantom Operating Profit pursuant to the provisos of Section 3.4(a) shall be distributed to the Limited Partners in accordance with the manner in which such Operating Profit was specially allocated.
(m)    Any cash or property that the General Partner determines is  attributable to a special allocation of Operating Profit to Professionals LP or the other Limited Partners (other than APH) pursuant to Section 3.4(b) shall be distributed solely to Professionals LP or to the Limited Partners (other than APH), as the case may be, until Professionals LP and such other Limited Partners (other than APH) have received an amount equal to such special allocation.
Section 4.2    Withholding of Certain Amounts
(h)    If the Partnership incurs a withholding tax or other tax obligation with respect to the share of Partnership income allocable to any Partner (including withholding under Sections 1471 through 1474 of the Code), then the General Partner, without limitation of any other rights of the Partnership, may cause the amount of such obligation to be debited against the Capital Account of such Partner when the Partnership pays such obligation, and any amounts then or thereafter distributable to such Partner shall be reduced by the amount of such taxes.  If the amount of such taxes is greater than any such then distributable amounts, then such Partner and any successor to such Partner’s interest shall indemnify and hold harmless the Partnership and the General Partner against, and shall pay to the Partnership as a contribution to the capital of the Partnership, upon demand of the General Partner, the amount of such excess.
(i)    The General Partner may (i)  withhold from any distribution to any Limited Partner pursuant to this Agreement and (ii) arrange the withholding from any distribution from Co-Investors (A) to such Limited Partner any other amounts due from such Limited Partner or a Related Party (without duplication) to the Partnership, Co-Investors (A) or to any other Affiliate of AGM pursuant to any binding agreement or published policy to the extent not otherwise paid.  Any amounts so withheld shall be applied by the General Partner to discharge the obligation in respect of which such amounts were withheld.
Section 4.3    Limitation on Distributions
Notwithstanding any provision to the contrary contained in this Agreement, the Partnership, and the General Partner on behalf of the Partnership, shall not make a distribution to any Partner on account of his interest in the Partnership if such distribution would violate the Delaware Act or other applicable law.
Section 4.4    Distributions in Excess of Basis
Notwithstanding anything in this Agreement to the contrary, the General Partner may refrain from making, at any time prior to the dissolution of the Partnership, all or any portion of any cash distribution that otherwise would be made to a Partner or Retired Partner, if such distribution would exceed such Person’s U.S. federal income tax basis in the Partnership.  Any amount that is not distributed to a Partner or Retired Partner due to the preceding sentence, as determined by the General Partner, either shall be retained by the Partnership on such Person’s behalf or loaned to such Person.  Subject to the first sentence of this Section 4.4, 100% of any or all subsequent cash distributions shall be distributed to such Person (or, if there is more than one such Person, pro rata to all such Persons based on the aggregate amount of distributions each such Person has not yet received) until each such Person has received the same aggregate amount of distributions such Person would have received had distributions to such Person not been deferred pursuant to this Section 4.4.  If any amount is loaned to a Partner or Retired Partner pursuant to this Section 4.4, any such loan shall be on arm’s length terms as determined by the General Partner and shall be fully recourse to the Partner or Retired Partner and (i) any amount thereafter distributed to such Person shall be applied to repay the principal amount of such loan and (ii) interest, if any, accrued or received by the Partnership on such loan shall be allocated and distributed to such Person.  Any such loan shall be repaid no later than immediately prior to the liquidation of the Partnership.  Until such repayment, for purposes of any determination hereunder based on amounts distributed to a Person, the principal amount of such loan shall be treated as having been distributed to such Person.
ARTICLE 5     
MANAGEMENT
Section 5.1    Rights and Powers of the General Partner
(j)    Subject to the terms and conditions of this Agreement, the General Partner shall have complete and exclusive responsibility (i) for all management decisions to be made on behalf of the Partnership and (ii) for the conduct of the business and affairs of the Partnership, including all such decisions and all such business and affairs to be made or conducted by the Partnership in its capacity as general partner of any of the Funds.
(k)    Without limiting the generality of the foregoing, the General Partner shall have full power and authority to execute, deliver and perform such contracts, agreements and other undertakings, and to engage in all activities and transactions, as it may deem necessary or advisable for, or as may be incidental to, the conduct of the business contemplated by this Section 5.1, including, without in any manner limiting the generality of the foregoing, contracts, agreements, undertakings and transactions with any Partner or with any other Person having any business, financial or other relationship with any Partner or Partners.  The Partnership, and the General Partner on behalf of the Partnership, may enter into and perform the Fund LP Agreements and any documents contemplated thereby or related thereto and any amendments thereto, without any further act, vote or approval of any Person, including any Partner, notwithstanding any other provision of this Agreement.  The General Partner is hereby authorized to enter into the documents described in the preceding sentence on behalf of the Partnership, but such authorization shall not be deemed a restriction on the power of the General Partner to enter into other documents on behalf of the Partnership.  Except as otherwise expressly provided herein or as required by law, all powers and authority vested in the General Partner by or pursuant to this Agreement or the Act shall be construed as being exercisable by the General Partner in its sole and absolute discretion.
(l)    The General Partner shall be the tax matters partner for purposes of Section 6231(a)(7) of the Code.  Each Partner agrees not to treat, on his United States federal income tax return or in any claim for a refund, any item of income, gain, loss, deduction or credit in a manner inconsistent with the treatment of such item by the Partnership.  The General Partner shall have the exclusive authority to make any elections required or permitted to be made by the Partnership under any provisions of the Code or any other laws.
Section 5.2    Delegation of Duties
(g)    Subject to Section 5.1, the General Partner may delegate to any Person or Persons any of the duties, powers and authority vested in it hereunder on such terms and conditions as it may consider appropriate.
(h)     Without limiting the generality of Section 5.2(a), the General Partner shall have the power and authority to appoint any Person, including any Person who is a Limited Partner, to provide services to and act as an employee or agent of the Partnership and/or General Partner, with such titles and duties as may be specified by the General Partner.  Any Person appointed by the General Partner to serve as an employee or agent of the Partnership shall be subject to removal at any time by the General Partner; and shall report to and consult with the General Partner at such times and in such manner as the General Partner may direct.
(i)    Any Person who is a Limited Partner and to whom the General Partner delegates any of its duties pursuant to this Section 5.2 or any other provision of this Agreement shall be subject to the same standard of care, and shall be entitled to the same rights of indemnification and exoneration, applicable to the General Partner under and pursuant to Section 5.7, unless such Person and the General Partner mutually agree to a different standard of care or right to indemnification and exoneration to which such Person shall be subject.
(j)    The General Partner shall be permitted to designate one or more committees of the Partnership, which committees may include Limited Partners as members.  Any such committees shall have such powers and authority granted by the General Partner.  Any Limited Partner who has agreed to serve on a committee shall not be deemed to have the power to bind or act for or on behalf of the Partnership in any manner and in no event shall a member of a committee be considered a general partner of the Partnership by agreement, estoppel or otherwise or be deemed to participate in the control of the business of the Partnership as a result of the performance of his duties hereunder or otherwise.
(k)    The General Partner shall cause the Partnership to enter into an arrangement with the Manager, which arrangement shall require the Manager to pay all costs and expenses of the Partnership.
Section 5.3    Transactions with Affiliates
To the fullest extent permitted by applicable law, the General Partner (or any Affiliate of the General Partner), when acting on behalf of the Partnership, is hereby authorized to (a) purchase property from, sell property to, lend money to or otherwise deal with any Affiliates, any Limited Partner, the Partnership, any of the Funds or any Affiliate of any of the foregoing Persons, and (b) obtain services from any Affiliates, any Limited Partner, the Partnership, any of the Funds or any Affiliate of the foregoing Persons.
Section 5.4    Expenses
(c)    Subject to the arrangement contemplated by Section 5.2(e), the Partnership will pay, or reimburse the General Partner for, all costs and expenses arising in connection with the organization and operations of the Partnership.
(d)    Any withholding taxes payable by the Partnership, to the extent determined by the General Partner to have been paid or withheld on behalf of, or by reason of particular circumstances applicable to, one or more but fewer than all of the Partners, shall be allocated among and debited against the Capital Accounts of only those Partners on whose behalf such payments are made or whose particular circumstances gave rise to such payments in accordance with Section 4.2.
Section 5.5    Rights of Limited Partners
(c)    Limited Partners shall have no right to take part in the management or control of the Partnership’s business, nor shall they have any right or authority to act for the Partnership or to vote on matters other than as set forth in this Agreement or as required by applicable law.
(d)    Without limiting the generality of the foregoing, the General Partner shall have the full and exclusive authority, without the consent of any Limited Partner, to compromise the obligation of any Limited Partner to make a capital contribution or to return money or other property paid or distributed to such Limited Partner in violation of the Delaware Act.
(e)    Nothing in this Agreement shall entitle any Partner to any compensation for services rendered to or on behalf of the Partnership as an agent or in any other capacity, except for any amounts payable in accordance with this Agreement.
(f)    Subject to the Fund LP Agreements and to full compliance with AGM’s code of ethics and other written policies relating to personal investment transactions, admission into the Partnership as a Limited Partner of the Partnership shall not prohibit a Limited Partner from purchasing or selling as a passive investor any interest in any asset.
Section 5.6    Other Activities of General Partner
Nothing in this Agreement shall prohibit the General Partner from engaging in any activity other than acting as General Partner hereunder.
Section 5.7    Duty of Care; Indemnification
(a)    The General Partner (including for this purpose each former and present director, officer, stockholder, partner, member, manager or employee of the General Partner) and each Limited Partner (including any former Limited Partner) in his capacity as such, and to the extent such Limited Partner participates, directly or indirectly, in the Partnership’s activities, whether or not a Retired Partner (each, a “Covered Person” and collectively, the “Covered Persons”), shall not be liable to the Partnership or to any of the other Partners for any loss, claim, damage, liability or expenses (including attorneys’ fees, judgments, fines, penalties and amounts paid in settlement (collectively, “Losses”) occasioned by any acts or omissions in the performance of his services hereunder, unless it shall ultimately be determined by final judicial decision from which there is no further right to appeal (a “Final Adjudication”) that such Losses are due to an act or omission of a Covered Person (i) made in bad faith or with criminal intent or (ii) that adversely affected any Fund and that failed to satisfy the duty of care owed pursuant to the applicable Fund LP Agreement or as otherwise required by law.
(b)    A Covered Person shall be indemnified to the fullest extent permitted by law by the Partnership against any Losses incurred by or imposed upon him by reason of or in connection with any action taken or omitted by such Covered Person arising out of the Covered Person’s status as a Partner or his activities on behalf of the Partnership, including in connection with any action, suit, investigation or proceeding before any Governmental Authority to which it may be made a party or otherwise involved or with which it shall be threatened by reason of being or having been the General Partner or a Limited Partner or by reason of serving or having served, at the request of the Partnership in its capacity as the general partner of any Fund, as a director, officer, consultant, advisor, manager, stockholder, member or partner of any enterprise in which any of the Funds has or had a financial interest, including issuers of Portfolio Investments; provided that the Partnership may, but shall not be required to, indemnify a Covered Person with respect to any matter as to which there has been a Final Adjudication that his acts or his failure to act (i) were in bad faith or with criminal intent or (ii) were of a nature that makes indemnification by the Funds unavailable.  The right to indemnification granted by this Section 5.7 shall be in addition to any rights to which a Covered Person may otherwise be entitled and shall inure to the benefit of the successors by operation of law or valid assigns of such Covered Person.  The Partnership shall pay the expenses incurred by a Covered Person in defending a civil or criminal action, suit, investigation or proceeding in advance of the Final Adjudication of such action, suit, investigation or proceeding, upon receipt of an undertaking by the Covered Person to repay such payment if there shall be a Final Adjudication that he is not entitled to indemnification as provided herein.  In any suit brought by the Covered Person to enforce a right to indemnification hereunder it shall be a defense that the Covered Person has not met the applicable standard of conduct set forth in this Section 5.7, and in any suit in the name of the Partnership to recover expenses advanced pursuant to the terms of an undertaking the Partnership shall be entitled to recover such expenses upon Final Adjudication that the Covered Person has not met the applicable standard of conduct set forth in this Section 5.7.  In any such suit brought to enforce a right to indemnification or to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the Covered Person is not entitled to be indemnified, or to an advancement of expenses, shall be on the Partnership (or any Limited Partner acting derivatively or otherwise on behalf of the Partnership or the Limited Partners).  The General Partner may not satisfy any right of indemnity or reimbursement granted in this Section 5.7 or to which it may be otherwise entitled except out of the assets of the Partnership (including insurance proceeds and rights pursuant to indemnification agreements), and no Partner shall be personally liable with respect to any such claim for indemnity or reimbursement.  The General Partner may enter into appropriate indemnification agreements and/or arrangements reflective of the provisions of this Article 5 and obtain appropriate insurance coverage on behalf and at the expense of the Partnership to secure the Partnership’s indemnification obligations hereunder.  Each Covered Person shall be deemed a third party beneficiary (to the extent not a direct party hereto) to this Agreement and, in particular, the provisions of this Article 5, may enforce any rights granted to it pursuant to this Agreement in its own right as if it were a party to this Agreement, and shall be entitled to the benefit of the indemnity granted to the Partnership by each of the Funds pursuant to the terms of the Fund LP Agreements.
(c)    To the maximum extent permitted by law, as among any Portfolio Company of a Fund, a Fund and the Partnership, this Section 5.7(c) shall be interpreted to reflect an ordering of liability for potentially overlapping or duplicative indemnification payments, in the following order:  first, such Portfolio Company; second, such Fund; and third, the Partnership (in each case, including any applicable insurance coverage that any such indemnitor maintains with respect to any such liability).
(d)    To the extent that, at law or in equity, a Covered Person has duties (including fiduciary duties) and liabilities relating thereto to the Partnership or the Partners, the Covered Person shall not be liable to the Partnership or to any Partner for his good faith reliance on the provisions of this Agreement.  The provisions of this Agreement, to the extent that they restrict or eliminate the duties and liabilities of a Covered Person otherwise existing at law or in equity to the Partnership or the Partners, are agreed by the Partners to replace such other duties and liabilities of each such Covered Person.
(e)    Notwithstanding any of the foregoing provisions of this Section 5.7, the Partnership may but shall not be required to indemnify (i) a Retired Partner (or any other former Limited Partner) with respect to any claim for indemnification or advancement of expenses arising from any conduct occurring more than six months after the date of such Person’s retirement (or other withdrawal or departure), or (ii) a Limited Partner with respect to any claim for indemnification or advancement of expenses as a director, officer or agent of the issuer of any Portfolio Investment to the extent arising from conduct in such capacity occurring more than six months after the complete disposition of such Portfolio Investment by the applicable Fund.
ARTICLE 6     
ADMISSIONS, TRANSFERS AND WITHDRAWALS
Section 6.1    Admission of Additional Limited Partners; Effect on Points
(l)    The General Partner may at any time admit as an additional Limited Partner any Person who has agreed to be bound by this Agreement and may assign Points to such Person and/or increase the Points of any existing Limited Partner, in each case, subject to and in accordance with Section 7.1.
(m)    Each additional Limited Partner shall execute (i) either a counterpart to this Agreement or a separate instrument evidencing, to the satisfaction of the General Partner, such Limited Partner’s intent to become a Limited Partner and (ii) the documents contemplated by Section 7.1(b), and shall be admitted as a Limited Partner upon such execution.
Section 6.2    Admission of Additional General Partner
The General Partner may admit one or more additional general partners at any time without the consent of any Limited Partner.  No reduction in the Points of any Limited Partner shall be made as a result of the admission of an additional general partner or the increase in the Points of any general partner without the consent of such Limited Partner.  Any additional general partner shall be admitted as a general partner upon its execution of a counterpart signature page to this Agreement.
Section 6.3    Transfer of Interests of Limited Partners
(e)    No Transfer of any Limited Partner’s interest in the Partnership, whether voluntary or involuntary, shall be valid or effective, and no transferee shall become a substituted Limited Partner, unless the prior written consent of the General Partner has been obtained, which consent may be given or withheld by the General Partner.  Notwithstanding the foregoing, any Limited Partner may Transfer to any Related Party of such Limited Partner all or part of such Limited Partner’s interest in the Partnership (including his or its right to receive distributions of Operating Profit); provided that the Transfer has been previously approved in writing by the General Partner, such approval not to be unreasonably withheld.  In the event of any Transfer, all of the conditions of the remainder of this Section 6.3 must also be satisfied.
(f)    A Limited Partner or his legal representative shall give the General Partner notice before the proposed effective date of any voluntary Transfer and within 30 days after any involuntary Transfer, and shall provide sufficient information to allow legal counsel acting for the Partnership to make the determination that the proposed Transfer will not result in any of the following consequences:
(iii)    require registration of the Partnership or any interest therein under any securities or commodities laws of any jurisdiction;
(iv)    result in a termination of the Partnership under Section 708(b)(1)(B) of the Code or jeopardize the status of the Partnership as a partnership for United States federal income tax purposes; or
(v)    violate, or cause the Partnership, the General Partner or any Limited Partner to violate, any applicable law, rule or regulation of any jurisdiction.
Such notice must be supported by proof of legal authority and a valid instrument of assignment acceptable to the General Partner.
(g)    If any Transfer permitted by this Section 6.3 shall result in multiple ownership of any Limited Partner’s interest in the Partnership, the General Partner may require one or more trustees or nominees whose names will be entered in the Register of Partners, to be designated to hold the legal title to the interest and to represent the entire interest transferred for the purpose of receiving all notices which may be given and all payments which may be made under this Agreement, and for the purpose of exercising the rights which the transferees have pursuant to the provisions of this Agreement.  The Partnership shall not otherwise be required to recognize any trust or other beneficial ownership of any interest.
(h)    A permitted transferee shall be entitled to the allocations and distributions attributable to the economic interest in the Partnership transferred to such transferee (and any such payment shall constitute a good and valid discharge of such obligation on the part of the General Partner); provided that such transferee shall not be entitled to the other rights of a Limited Partner as a result of such transfer until he becomes a substituted Limited Partner.  No transferee may become a substituted Limited Partner except with the prior written consent of the General Partner (which consent may be given or withheld by the General Partner).  Such transferee shall be admitted to the Partnership as a substituted Limited Partner upon execution of a counterpart of this Agreement or such other instrument evidencing, to the satisfaction of the General Partner, such Limited Partner’s intent to become a Limited Partner of the Partnership and to adhere to and be bound by the provisions of this Agreement on admission as a Limited Partner.  Notwithstanding the above, the Partnership and the General Partner shall incur no liability for allocations and distributions made in good faith to the transferring Limited Partner until a written instrument of Transfer has been received and accepted by the Partnership and recorded on its books and the effective date of the Transfer has passed.
(i)    Any other provision of this Agreement to the contrary notwithstanding, to the fullest extent permitted by law, any successor or transferee of any Limited Partner’s interest in the Partnership shall be bound by the provisions hereof.  Prior to recognizing any Transfer in accordance with this Section 6.3, the General Partner may require the transferee to make certain representations and warranties to the Partnership and Partners and to accept, adopt and approve in writing all of the terms and provisions of this Agreement.
(j)    In the event of a Transfer or in the event of a distribution of assets of the Partnership to any Partner, the Partnership, at the direction of the General Partner, may, but shall not be required to, file an election under Section 754 of the Code and in accordance with the applicable Treasury Regulations, to cause the basis of the Partnership’s assets to be adjusted as provided by Section 734 or 743 of the Code.
(k)    The Partnership shall maintain books for the purpose of registering the Transfer of partnership interests in the Partnership.  No Transfer of a partnership interest shall be effective until the Transfer of the partnership interest is registered by the General Partner on the Register of Partners. 
Section 6.4    Withdrawal of Partners
A Partner in the Partnership may not withdraw from the Partnership prior to its dissolution.  For the avoidance of doubt, any Limited Partner who transfers to a Related Party such Limited Partner’s entire remaining entitlement to allocations and distributions shall remain a Limited Partner, notwithstanding the admission of the transferee Related Party as a Limited Partner, for as long as the transferee Related Party remains a Limited Partner.
Section 6.5    Pledges
(d)    A Limited Partner shall not pledge or grant a security interest in such Limited Partner’s interest in the Partnership unless the prior written consent of the General Partner has been obtained (which consent may be given or withheld by the General Partner).
(e)    Notwithstanding Section 6.5(a), any Limited Partner may grant  to a bank or other financial institution a security interest in such part of such Limited Partner’s interest in the Partnership as relates solely to the right to receive distributions of Operating Profit in the ordinary course of obtaining bona fide loan financing to fund his contributions to the capital of the Partnership, Co-Investors (A), any of the Public Vehicles and/or any other investment fund or vehicle that forms part of the Credit Business.  If the interest of the Limited Partner in the Partnership or Co-Investors (A) or any portion thereof in respect of which a Limited Partner has granted a security interest ceases to be owned by such Limited Partner in connection with the exercise by the secured party of remedies resulting from a default by such Limited Partner or upon the occurrence of such similar events with respect to such Limited Partner’s interest in Co-Investors (A), such interest of the Limited Partner in the Partnership or portion thereof shall thereupon become a non-voting interest and the holder thereof shall not be entitled to vote on any matter pursuant to this Agreement.
(f)    For purposes of the grant, pledge, attachment or perfection of a security interest in a partnership interest in the Partnership or otherwise, each such partnership interest shall constitute a “security” within the meaning of, and governed by, (i) Article 8 of the Uniform Commercial Code (including Section 8‐102(a)(15) thereof) as in effect from time to time in the State of Delaware (the “DEUCC”), and (ii) Article 8 of the Uniform Commercial Code of any other applicable jurisdiction that now or hereafter substantially includes the 1994 revisions to Article 8 thereof as adopted by the American Law Institute and the National Conference of Commissioners on Uniform State Laws and approved by the American Bar Association on February 14, 1995.  
(g)    Any partnership interest in the Partnership may be evidenced by a certificate issued by the Partnership in such form as the General Partner may approve.  Every certificate representing an interest in the Partnership shall bear a legend substantially in the following form:  
“Each partnership interest constitutes a “security” within the meaning of, and governed by, (i) Article 8 of the Uniform Commercial Code (including Section 8‐102(a)(15) thereof) as in effect from time to time in the State of Delaware, and (ii) Article 8 of the Uniform Commercial Code of any other applicable jurisdiction that now or hereafter substantially includes the 1994 revisions to Article 8 thereof as adopted by the American Law Institute and the National Conference of Commissioners on Uniform State Laws and approved by the American Bar Association on February 14, 1995.
THE TRANSFER OF THIS CERTIFICATE AND THE PARTNERSHIP INTERESTS REPRESENTED HEREBY IS RESTRICTED AS DESCRIBED IN THE SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF THE PARTNERSHIP, AS THE SAME MAY BE AMENDED OR RESTATED FROM TIME TO TIME.” 
(h)    Each certificate representing a partnership interest in the Partnership shall be executed by manual or facsimile signature of the General Partner on behalf of the Partnership.
(i)    Notwithstanding any provision of this Agreement to the contrary, to the extent that any provision of this Agreement is inconsistent with any non-waivable provision of Article 8 of the DEUCC, such provision of Article 8 of the DEUCC shall control.
ARTICLE 7     
ALLOCATION OF POINTS; ADJUSTMENTS OF POINTS 
AND RETIREMENT OF PARTNERS
Section 7.1    Allocation of Points
(c)    Except as otherwise provided herein, the General Partner shall be responsible for the allocation of Points from time to time to the Limited Partners.  The General Partner may allocate Points to a new Limited Partner and/or increase or reduce the Points of any existing Limited Partner at any time; provided that: (1) except as expressly set forth in a Limited Partner’s Award Letter, (i) the General Partner may reduce such Limited Partner’s Points only in December of each year following the date of the initial allocation of Points to such Limited Partner, (ii) the General Partner may not reduce a Retired Partner’s Vested Points, and (iii) the allocation and reallocation of Points will be on such terms as are consistent with the treatment of the Points as profits interests for U.S. federal income tax purposes; (2) Professionals LP shall at all times have at least 0.4% of all Points; and (3) APH and its Affiliates shall in no event have more than the APH Percentage of all Points.  Notwithstanding anything to the contrary herein, there shall be a maximum of 2,000 Points available for issuance.
(d)    Unless otherwise agreed by the General Partner, the initial allocation of Points to any Limited Partner (other than Partner Pool LP and Professionals LP) shall not become effective until:
(vi)    the receipt of the following documents, in form and substance reasonably satisfactory to the General Partner, executed by such Limited Partner: (A) a customary and standard guarantee or guarantees, for the benefit of Fund investors, of the Limited Partner’s Clawback Share of the Partnership’s obligation to make Clawback Payments, and (B) a customary and standard undertaking to reimburse Apollo Principal Holdings II, L.P. for any payment made by it (or by another AGM Affiliate) that is attributable to such Limited Partner’s Clawback Share of any Clawback Payment; and
(vii)    the effective date of the acceptance by Co-Investors (A) of a capital commitment from such Limited Partner (or his Related Party, as applicable) in an amount equal to such Limited Partner’s Required Commitment as set forth in such Limited Partner’s Award Letter.  
(e)    Any change to a Limited Partner’s Points pursuant to this Agreement or such Limited Partner’s Award Letter shall apply on a prospective basis only from and after the effective date of such change; it being understood that such Limited Partner shall not be required to refund to the Partnership any distributions received by such Limited Partner in respect of his Points prior to such change, solely as a result of any such change.
(f)    The General Partner shall maintain on the books and records of the Partnership a record of the number of Points allocated to each Partner and shall give notice to each Limited Partner of the number of such Limited Partner’s Points upon admission to the Partnership of such Limited Partner and promptly upon any change in such Limited Partner’s Points pursuant to this Article 7 and such notice shall include the calculations used by the General Partner to determine the amount of any such reduction.
(g)    Subject to the limitations imposed under Section 7.1(a)(1)(ii) and (iii) regarding the allocation of Points and Section 7.1(f), any Points that are forfeited under this Agreement or a Limited Partner’s Award Letter may be reallocated by the General Partner, in its sole discretion, following consultation with AGM Credit Senior Management, to any Person or Persons.  Until any such reallocation by the General Partner, forfeited Points shall be deemed reallocated to James Zelter (or his successor as head of the Credit Business), except that, unless otherwise determined by the General Partner (including as regards any distribution to pay taxes incurred by Mr. Zelter, net of any tax benefit conferred upon him, in respect of the reallocation of such forfeited Points to Mr. Zelter), Mr. Zelter shall not be entitled to any allocations or distributions on such forfeited Points and shall instead hold them for the benefit and on behalf of the Person or Persons to whom they are reallocated, which reallocation(s), unless otherwise determined by the General Partner, shall occur not later than the fourth quarter of the Fiscal Year in which the Points were forfeited.
(h)    The Points awarded to APH may be reduced from time to time, as determined by the General Partner, to increase the Points to be allocated to any of the other Limited Partners (other than Professionals LP) or to issue Points to any Newly-Admitted Limited Partner with the intention that the dilution resulting therefrom is borne by APH and by the then existing Limited Partners on a pro rata basis.  Thereafter, if Points become available for reallocation for any reason, then any reduction theretofore made in the Points allocated to APH as described in the preceding sentence shall first be restored, before any further reallocation of such Points.  The determinations of the General Partner to implement the foregoing shall be final and binding on the Partnership and the Limited Partners.
Section 7.2    Retirement of Partner
(l)    A Limited Partner shall become a Retired Partner upon:
(i)    delivery to such Limited Partner of a notice by the General Partner terminating such Limited Partner’s employment by AGM or an Affiliate thereof, unless otherwise determined by the General Partner;
(ii)    delivery by such Limited Partner of at least 90 days’ prior written notice to the General Partner, AGM or an Affiliate thereof stating that such Limited Partner elects to resign from or otherwise terminate his or her employment by or service to AGM or an Affiliate thereof; or
(iii)    the death of the Limited Partner, whereupon the estate of the deceased Limited Partner shall be treated as a Retired Partner in the place of the deceased Limited Partner, or the Disability of the Limited Partner.
(m)    Nothing in this Agreement shall obligate the General Partner to treat Retired Partners alike, and the exercise of any power or discretion by the General Partner in the case of any one such Retired Partner shall not create any obligation on the part of the General Partner to take any similar action in the case of any other such Retired Partner; it being understood that any power or discretion conferred upon the General Partner shall be treated as having been so conferred as to each such Retired Partner separately.
Section 7.3    Effect of Retirement on Points
(g)    The consequences of a Limited Partner’s retirement on his Points shall be set forth in such Limited Partner’s Award Letter.  
(h)    Upon a Limited Partner’s becoming a Retired Partner by reason of his Bad Act, as of his Retirement Date, he shall automatically cease to be a Limited Partner and shall forfeit the balance of his Capital Account as of his Retirement Date.  Notwithstanding the foregoing, each Retired Partner shall be entitled to a payment in an amount equal to any Book-Tax Difference that was recognized by such Retired Partner as taxable income or gain prior to his Retirement Date.
ARTICLE 8     
DISSOLUTION AND LIQUIDATION
Section 8.1    Dissolution and Liquidation of Partnership
(n)    Upon dissolution of the Partnership in accordance with the Delaware Act, the General Partner shall liquidate the business and administrative affairs of the Partnership, except that, if the General Partner is unable to perform this function, a liquidator may be elected by a majority in interest (determined by Points) of Limited Partners and upon such election such liquidator shall liquidate the Partnership. 
(o)    Capital Profit, Capital Loss, Operating Profit and Operating Loss during the Fiscal Years that include the period of liquidation shall be allocated pursuant to Section 3.4.  The proceeds from liquidation shall be distributed in the following manner:
(i)    first, the debts, liabilities and obligations of the Partnership, including the expenses of liquidation (including legal and accounting expenses incurred in connection therewith), up to and including the date that distribution of the Partnership’s assets to the Partners has been completed, shall be satisfied (whether by payment or by making reasonable provision for payment thereof); and
(ii)    thereafter, the Partners shall be paid amounts in accordance with Article 4.
(p)    Anything in this Section 8.1 to the contrary notwithstanding, the General Partner or liquidator may distribute ratably in kind rather than in cash, upon dissolution, any assets of the Partnership in accordance with the priorities set forth in Section 8.1(b); provided that if any in kind distribution is to be made, the assets distributed in kind shall be valued as of the actual date of their distribution and charged as so valued and distributed against amounts to be paid under Section 8.1(b).
(q)    Upon completion of the winding-up of the Partnership in accordance with the terms hereof, the General Partner shall file a certificate of cancellation of certificate of limited partnership of the Partnership with the Office of the Secretary of State of the State of Delaware pursuant to the Delaware Act.
ARTICLE 9     
GENERAL PROVISIONS
Section 9.1    Consistent Economic Treatment
Except as otherwise specifically provided herein or in any Limited Partner’s Award Letter, the General Partner shall not treat any Team Member who is a Limited Partner in a manner that is adverse in comparison with the treatment of APH with respect to allocations of Operating Profit, distributions (including liquidating distributions) of Operating Profit (including form, timing and amount of such distributions), Point dilution and funding of Clawback Shares or Giveback Shares.  For the avoidance of doubt, the foregoing is not intended to limit the General Partner’s authority (i) relating to forfeiture of Points due to retirement or Bad Acts and allocation of Points to APH to the extent not required to be allocated to Team Members, in each case, in accordance with the terms and conditions set forth herein, (ii) to enter into any Award Letter or Other Agreement with a Team Member or APH in connection with an award of Points to such Team Member or APH providing for special allocations of income or a reapportionment of distributions attributable to such Points for the purpose of eliminating or reducing a current recognition of taxable income by such Team Member or APH as a result of such Point award, or (iii) to implement any of the special allocation or special distribution provisions of this Agreement.
Section 9.2    Carried Interest Related to the Fund
To the extent that (a) any strategic partnership or managed account of the Credit Business invests in or co-invests with the Fund, either directly or through a special purpose vehicle of such strategic partnership or managed account, and (b) its general partner or any other AGM entity derives any carried interest distributions attributable to such investment or co-investments, AGM and the General Partner shall cause such carried interest distributions (as adjusted, as necessary, taking into account the arrangements described in the next sentence of this Section 9.2) to be allocated and distributed among holders of Points at the same time and in the same manner as such amounts would be allocated and distributed if received as Operating Profit by the Partnership, but without duplication, either by causing the Partnership to hold an equity or tracking interest in the entity deriving such carried interest or in some other manner reasonably calculated to accomplish the intent of this provision.  The Partners hereby acknowledge and understand that nothing contained herein shall restrict the right of AGM or any of its Affiliates to apply any netting arrangements with respect to any fees or charges, including management fees, carried interest or incentive allocations, in respect of any such strategic partnership or managed account across all or any portion of the investments or co-investments made by such strategic partnership or managed account.
Section 9.3    Amendment of Partnership Agreement and Co-Investors (A) Partnership Agreement
(f)    The General Partner may amend this Agreement at any time, in whole or in part, without the consent of any Limited Partner by giving notice of such amendment to any Limited Partner whose rights or obligations as a Limited Partner pursuant to this Agreement are changed thereby; provided that:  (i) any amendment that would disproportionately effect a material adverse change in the contractual rights or obligations of a Limited Partner vis-à-vis all other Limited Partners (such rights or obligations determined without regard to the amendment power reserved herein) may only be made if the written consent of such Limited Partner is obtained prior to the effectiveness thereof; and (ii) any amendment that (x) increases a Partner’s obligation to contribute to the capital of the Partnership, or (y) increases such Limited Partner’s Clawback Share shall not be effective with respect to such Limited Partner, unless such Limited Partner consents thereto in advance in writing.  Notwithstanding the foregoing, the General Partner may amend this Agreement at any time, in whole or in part, without the consent of any Limited Partner to enable the Partnership to (i) comply with the requirements of the “Safe Harbor” Election within the meaning of the Proposed Revenue Procedure of Notice 2005-43, 2005-24 IRB 1, Proposed Treasury Regulation Section 1.83-3(e)(1) or Proposed Treasury Regulation Section 1.704-1(b)(4)(xii) at such time as such proposed Procedure and Regulations are effective and to make any such other related changes as may be required by pronouncements or Treasury Regulations issued by the Internal Revenue Service or Treasury Department after the date of this Agreement and (ii) comply with applicable law; provided that any amendment pursuant to clause (i) that would cause a Limited Partner’s rights to allocations and distributions to suffer a material adverse change only may be made if the written consent of such Limited Partner is obtained prior to the effectiveness thereof.  An adjustment of Points shall not be considered an amendment to the extent effected in compliance with the provisions of Section 7.1 or Section 7.3 as in effect on the date hereof or as hereafter amended in compliance with the requirements of this Section 9.3(a).  The General Partner’s approval of or consent to (x) any transaction resulting in the substitution of another Person in place of the Partnership as the general partner of any of the Funds or (y) any change to the scheme of distribution under any of the Fund LP Agreements (but, for the avoidance of doubt, not including any arrangements with investors in any Fund that reduce the Carried Interest Revenues chargeable to or payable by such investors), that, in either case, would have the effect of reducing the Partnership’s allocable share of the Net Income of any Fund shall require the consent of any Limited Partner adversely affected thereby.
(g)    Notwithstanding the provisions of this Agreement, including Section 9.3(a), it is hereby acknowledged and agreed that the General Partner on its own behalf or on behalf of the Partnership without the approval of any Limited Partner or any other Person may enter into one or more side letters or similar agreements (“Other Agreements”) with one or more Limited Partners which have the effect of establishing rights under, or altering or supplementing the terms of this Agreement.  The parties hereto agree that any terms contained in an Other Agreement with one or more Limited Partners shall govern with respect to such Limited Partner or Limited Partners notwithstanding the provisions of this Agreement.  Any Other Agreements shall be binding upon the Partnership or the General Partner, as applicable, and the signatories thereto as if the terms were contained in this Agreement, but no such Other Agreement between the General Partner and any Limited Partner or Limited Partners and the Partnership shall adversely amend the contractual rights or obligations of any other Limited Partner without such other Limited Partner’s prior consent.
(h)    The provisions of this Agreement that affect the terms of the Co-Investors (A) Partnership Agreement applicable to Limited Partners constitute a “side letter or similar agreement” between each Limited Partner and the general partner of Co-Investors (A), which has executed this Agreement exclusively for purposes of confirming the foregoing.
Section 9.4    Special Power-of-Attorney
(a)    Each Partner hereby irrevocably makes, constitutes and appoints the General Partner with full power of substitution, the true and lawful representative and attorney-in-fact, and in the name, place and stead of such Partner, with the power from time to time to make, execute, sign, acknowledge, swear to, verify, deliver, record, file and/or publish:
(i)    any amendment to this Agreement which complies with the provisions of this Agreement (including the provisions of Section 9.3);
(ii)    all such other instruments, documents and certificates which, in the opinion of legal counsel to the Partnership, may from time to time be required by the laws of the State of Delaware, the United States of America, or any other jurisdiction, or any political subdivision or agency thereof, or which such legal counsel may deem necessary or appropriate to effectuate, implement and continue the valid and subsisting existence and business of the Partnership as a limited partnership; 
(iii)    all such instruments, certificates, agreements and other documents relating to the conduct of the investment program of any of the Funds which, in the opinion of such attorney-in-fact and the legal counsel to the Funds, are reasonably necessary to accomplish the legal, regulatory and fiscal objectives of the Funds in connection with its or their acquisition, ownership and disposition of investments, including:
(A)    the governing documents of any management entity formed as a part of the tax planning for any of the Funds and any amendments thereto; and
(B)    documents relating to any restructuring transaction with respect to any of the Funds’ investments;
provided that such documents referred to in clauses (A) and (B) above, viewed individually or in the aggregate, provide substantially equivalent financial and economic rights and obligations with respect to such Limited Partner and otherwise do not:
(1)    increase the Limited Partner’s overall financial obligation to make capital contributions with respect to the relevant Fund (directly or through any associated vehicle in which the Limited Partner holds an interest);
(2)    diminish the Limited Partner’s overall entitlement to share in profits and distributions with respect to the relevant Fund (directly or through any associated vehicle in which the Limited Partner holds an interest); 
(3)    cause the Limited Partner to become subject to increased personal liability for any debts or obligations of the Partnership or other Partners; or
(4)    otherwise result in an adverse change in the overall rights or obligations of the Limited Partner in relation to the conduct of the investment program of any of the Funds; 
(iv)    any instrument or document necessary or advisable to implement the provisions of Section 3.10;
(v)    any written notice or letter of resignation from any board seat or office of any Person (other than a company that has a class of equity securities registered under the United States Securities Exchange Act of 1934, as amended, or that is registered under the United States Investment Company Act of 1940, as amended), which board seat or office was occupied or held at the request of the Partnership or any of its Affiliates; and
(vi)    all such proxies, consents, assignments and other documents as the General Partner determines to be necessary or advisable in connection with any merger or other reorganization, restructuring or other similar transaction entered into in accordance with this Agreement (including the provisions of Section 9.7(c)).
(b)    Each Limited Partner is aware that the terms of this Agreement permit certain amendments to this Agreement to be effected and certain other actions to be taken or omitted by or with respect to the Partnership without his consent.  If an amendment of the Certificate or this Agreement or any action by or with respect to the Partnership is taken by the General Partner in the manner contemplated by this Agreement, each Limited Partner agrees that, notwithstanding any objection which such Limited Partner may assert with respect to such action, the General Partner is authorized and empowered, with full power of substitution, to exercise the authority granted above in any manner which may be necessary or appropriate to permit such amendment to be made or action lawfully taken or omitted.  Each Partner is fully aware that each other Partner will rely on the effectiveness of this special power-of-attorney with a view to the orderly administration of the affairs of the Partnership.  This power-of-attorney is a special power-of-attorney and is coupled with an interest in favor of the General Partner and as such:
(vi)    shall be irrevocable and continue in full force and effect notwithstanding the subsequent death or incapacity of any party granting this power-of-attorney, regardless of whether the Partnership or the General Partner shall have had notice thereof; and
(vii)    shall survive any Transfer by a Limited Partner of the whole or any portion of its interest in the Partnership, except that, where the transferee thereof has been approved by the General Partner for admission to the Partnership as a substituted Limited Partner, this power- of-attorney given by the transferor shall survive such Transfer for the sole purpose of enabling the General Partner to execute, acknowledge and file any instrument necessary to effect such substitution.
Section 9.5    Notices
Any notice required or permitted to be given under this Agreement shall be in writing. A notice to the General Partner shall be directed to the attention of Leon D. Black with a copy to the general counsel of the Partnership.  A notice to a Limited Partner shall be directed to such Limited Partner’s last known residence as set forth in the books and records of the Partnership or its Affiliates (a Limited Partner’s “Home Address”).  A notice shall be considered given when delivered to the addressee either by hand at his Partnership office or electronically to the primary e-mail account supplied by the Partnership for Partnership business communications, except that a notice to a Retired Partner or a notice demanding cure of a Bad Act shall be considered given only when delivered by hand or by a recognized overnight courier or delivered by mailing through the United States Postal System by regular mail to such Retired Partner’s Home Address.
Section 9.6    Agreement Binding Upon Successors and Assigns
This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors by operation of law, but the rights and obligations of the Partners hereunder shall not be assignable, transferable or delegable except as expressly provided herein, and any attempted assignment, transfer or delegation thereof that is not made in accordance with such express provisions shall be void and unenforceable.
Section 9.7    Merger, Consolidation, etc.
(a)    Subject to Section 9.7(b) and Section 9.7(c), the Partnership may merge or consolidate with or into one or more limited partnerships formed under the Delaware Act or other business entities (as defined in Section 17-211 of the Delaware Act) pursuant to an agreement of merger or consolidation which has been approved by the General Partner.
(b)    Subject to Section 9.7(c), but notwithstanding any other provision to the contrary contained elsewhere in this Agreement, an agreement of merger or consolidation approved in accordance with Section 9.7(a) may, to the extent permitted by Section 17-211(g) of the Delaware Act and Section 9.7(a), (i) effect any amendment to this Agreement, (ii) effect the adoption of a new partnership agreement for the Partnership if it is the surviving or resulting limited partnership in the merger or consolidation, or (iii) provide that the partnership agreement of any other constituent limited partnership to the merger or consolidation (including a limited partnership formed for the purpose of consummating the merger or consolidation) shall be the partnership agreement of the surviving or resulting limited partnership.
(c)    The General Partner shall have the power and authority to approve and implement any merger, consolidation or other reorganization, restructuring or similar transaction without the consent of any Limited Partner, other than any Limited Partner with respect to which the General Partner has determined that such transaction will, or will reasonably be likely to, result in any material adverse change in the financial and other material rights of such Limited Partner conferred by this Agreement and any Other Agreement entered into pursuant to Section 9.3(b) or the imposition of any material new financial or other obligation on such Limited Partner.  Subject to the foregoing, the General Partner may require one or more of the Limited Partners to sell, exchange, transfer or otherwise dispose of their interests in the Partnership in connection with any such transaction, and each Limited Partner shall take such action as may be directed by the General Partner to effect any such transaction.
Section 9.8    Governing Law; Dispute Resolution
(a)    This Agreement, and the rights and obligations of each and all of the Partners hereunder, shall be governed by and construed in accordance with the laws of the State of Delaware.
(b)    Subject to Section 9.8(c), any dispute, controversy, suit, action or proceeding arising out of or relating to this Agreement, other than injunctive relief, will be settled exclusively by arbitration, conducted before a single arbitrator in New York County, New York (applying Delaware law) in accordance with, and pursuant to, the applicable rules of JAMS (“JAMS”).  The arbitration shall be conducted on a strictly confidential basis, and none of the parties shall disclose the existence of a claim, the nature of a claim, any documents, exhibits, or information exchanged or presented in connection with such a claim, or the result of any action, to any third party, except as required by law, with the sole exception of their legal counsel and parties engaged by that counsel to assist in the arbitration process, who also shall be bound by these confidentiality terms.  The decision of the arbitrator will be final and binding upon the parties hereto.  Any arbitral award may be entered as a judgment or order in any court of competent jurisdiction.  Any party hereto may commence litigation in court to obtain injunctive relief in aid of arbitration, to compel arbitration, or to confirm or vacate an award, to the extent authorized by the U.S. Federal Arbitration Act or the New York Arbitration Act.  The party that is determined by the arbitrator not to be the prevailing party will pay all of the JAMS’s administrative fees and the arbitrator’s fee and expenses.  If neither party is so determined, such fees shall be shared.  Each party shall be responsible for such party’s own attorneys’ fees.  IF THIS AGREEMENT TO ARBITRATE IS HELD INVALID OR UNENFORCEABLE THEN, TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, EACH PARTNER AND THE PARTNERSHIP WAIVE AND COVENANT THAT THE PARTNER AND THE PARTNERSHIP WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS AGREEMENT, WHETHER NOW OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AND AGREE THAT THE PARTNERSHIP OR ANY OF ITS AFFILIATES OR ANY PARTNER MAY FILE A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTNERSHIP AND ITS AFFILIATES, ON THE ONE HAND, AND THE PARTNER, ON THE OTHER HAND, IRREVOCABLY TO WAIVE THE RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN SUCH PARTIES ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THAT ANY PROCEEDING PROPERLY HEARD BY A COURT UNDER THIS AGREEMENT WILL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.
(c)    Nothing in this Section 9.8 will prevent the General Partner or a Limited Partner from applying to a court for preliminary or interim relief or permanent injunction in a judicial proceeding (e.g., injunction or restraining order), in addition to and not in lieu of any other remedy to which it may be entitled at law or in equity, if such relief from a court is necessary to preserve the status quo pending resolution or to prevent serious and irreparable injury in connection with any breach or anticipated breach of covenants applicable pursuant to a Limited Partner’s Award Letter; provided, however, that all parties explicitly waive all rights to seek preliminary, interim, injunctive or other relief in a judicial proceeding and all parties submit to the exclusive jurisdiction of the forum described in Section 9.8(b) hereto for any dispute or claim concerning continuing entitlement to distributions or other payments, even if such dispute or claim involves or relates to any restrictive covenants set forth in a Limited Partner’s Award Letter.  For the purposes of this Section 9.8(c), each party hereto consents to the exclusive jurisdiction and venue of the courts of the state and federal courts within the County of New York in the State of New York.
Section 9.9    Termination of Right of Action
Every right of action arising out of or in connection with this Agreement by or on behalf of any past, present or future Partner or the Partnership against any past, present or future Partner shall, to the fullest extent permitted by applicable law, irrespective of the place where the action may be brought and irrespective of the residence of any such Partner, cease and be barred by the expiration of three years from the date of the act or omission in respect of which such right of action arises.
Section 9.10    Not for Benefit of Creditors
The provisions of this Agreement are intended only for the regulation of relations among Partners and between Partners and former or prospective Partners and the Partnership.  Except with respect to the rights of Covered Persons hereunder, each of whom shall be an intended beneficiary and shall be entitled to enforce the provisions of Section 5.7, this Agreement is not intended for the benefit of any Person who is not a Partner, and no rights are intended to be granted to any other Person who is not a Partner under this Agreement.
Section 9.11    Reports
As soon as practicable after the end of each taxable year, the General Partner shall furnish to each Limited Partner (a) such information as may be required to enable each Limited Partner to properly report for United States federal and state income tax purposes his distributive share of each Partnership item of income, gain, loss, deduction or credit for such year, and (b) a statement of the total amount of Operating Profit or Operating Loss for such year, including a copy of the United States Internal Revenue Service Schedule “K-1” issued by the Partnership to such Limited Partner, and a reconciliation of any difference between (i) such Operating Profit or Operating Loss and (ii) the aggregate net profits or net losses allocated by the Funds to the Partnership for such year (other than any difference attributable to the aggregate Capital Profit or Capital Loss allocated by the Funds to the Partnership for such year).
Section 9.12    Filings
The Partners hereby agree to take any measures necessary (or, if applicable, refrain from any action) to ensure that the Partnership is treated as a partnership for U.S. federal, state and local income tax purposes.
Section 9.13    Counterparts
This Agreement may be executed in one or more counterparts, including by facsimile or other electronic signature.  All such counterparts so executed shall constitute an original agreement binding on all the parties, but together shall constitute but one instrument.

[Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first set forth above.

GENERAL PARTNER:

APOLLO CREDIT OPPORTUNITY
ADVISORS III (APO FC) GP LLC

By:    /s/ Joseph D. Glatt        
Name: Joseph D. Glatt    
Title: Vice President

LIMITED PARTNERS:

APH HOLDINGS (FC), L.P.
By:    Apollo Principal Holdings VII GP, Ltd.,
its General Partner

By:    /s/ Joseph D. Glatt                
Name: Joseph D. Glatt    
Title: Vice President

APOLLO CIP PARTNER POOL, L.P.
By:     Apollo CIP GenPar, Ltd.,
its General Partner

By:    /s/ Joseph D. Glatt        
Name: Joseph D. Glatt    
Title: Vice President

[Signature Page of COF III GP Partnership Agreement]

APOLLO CIP PROFESSIONALS, L.P.
By:     Apollo CIP GenPar, Ltd.,
its General Partner

By:    /s/ Joseph D. Glatt            
Name: Joseph D. Glatt    
Title: Vice President

For purposes of Section 9.3(c) only:

APOLLO CO-INVESTORS MANAGER, LLC

By:    /s/ Joseph D. Glatt                
Name: Joseph D. Glatt
Title: Vice President

[Signature Page of COF III GP Partnership Agreement]Exhibit1057

CONFIDENTIAL & PROPRIETARY     

[FORM OF AWARD LETTER]
APOLLO CREDIT OPPORTUNITY ADVISORS III (APO FC) LP

[Name]
 
[Address]
Dear [Name]:
Reference is made to the Second Amended and Restated Agreement of Limited Partnership of Apollo Credit Opportunity Advisors III (APO FC) LP (the “Partnership”), as in effect from time to time (the “Partnership Agreement”).  This Award Letter confirms the number of Points you are being awarded in the Partnership and certain terms in relation to the Partnership Agreement.  Capitalized terms used but not defined herein shall have the meanings set forth in the Partnership Agreement. 
I.Your Initial Point Award
You are being granted [ ̃] Points on the terms set forth in this Award Letter and the Partnership Agreement.  
II.    Vesting Percentage and Vesting Commencement Date
The term “Vesting Percentage” as applied to you shall have the meaning set forth below:
“Vesting Percentage” means, with respect to you upon your becoming a Retired Partner:   [ ̃]
Your “Vesting Commencement Date” is [ ̃] for the initial Points awarded to you by the Partnership.
If additional Points are awarded to you by the Partnership after the date hereof, the Vesting Commencement Date for such additional Points will commence on dates to be agreed by AGM Credit Senior Management and the Executive Committee of AGM.
As long as you remain an employee of or active partner of AGM, you will share in distributions made by the Partnership to its Partners with respect to all your Points granted by the Partnership (vested and unvested).
III.    Dilution
1.    The General Partner may increase or reduce your Points at any time; provided that, except as expressly set forth below in paragraphs 2, 3 and 4, (i) the General Partner may reduce your Points in the Partnership only in December 2016, and thereafter in December of each subsequent even-numbered year, and (ii) the General Partner may not reduce your Vested Points when you become a Retired Partner.
2.    The General Partner may reduce or eliminate your Points (including your Vested Points when you become a Retired Partner), upon the occurrence of your default, after the expiration of the applicable cure period set forth in the Co-Investors (A) Partnership Agreement, in your obligation to contribute capital to Co-Investors (A) in accordance with the Co‐Investors (A) Partnership Agreement.
3.    1.%2.%3.%4.    Your Points may be reduced as a consequence of an allocation of Points to another Team Member (as defined below) if all of the following conditions are satisfied:  [ ̃]
(a)    For new issuance of Points agreed to between AGM Credit Senior Management and the Executive Committee of AGM, it is intended that the dilution in the sharing of the Carried Interest Revenues will be borne by all then existing Limited Partners on a pro rata basis (determined as of the effective date of the dilution).  Accordingly, the Points of the then existing Limited Partners will be appropriately reduced on a pro rata basis based on the Points then held by them; provided, however, that if your Points would  be reduced to below 40, your Points shall be reduced to 40 and the balance of the Points that would otherwise have reduced your Points shall instead reduce the Points of the other Limited Partners whose Points are to be reduced in accordance with this paragraph 3(b).  In all cases, the determinations of the General Partner to implement the foregoing shall be final and binding on the Partnership and the Limited Partners.
(b)    The Executive Committee of AGM shall apply the reduction of your Points against the Points held by you in the Partnership or indirectly in Partner Pool LP as determined by the Executive Committee of AGM in its sole discretion. 
(c)    For purposes of this Award Letter: 
“Credit Business” means all segments of the credit business of AGM, which, for the avoidance of doubt, includes, without limitation, Opportunistic Credit, European Credit, U.S. Performing Credit, Structured Credit, Non-Performing Loans, Strategic Accounts, CMBS/CRE, CPI Europe, Principal Structured Finance and RMBS, as well as credit businesses under development, including, but not limited to, Energy Credit and Finco, but excluding assets of Athene Holding Ltd. (and related revenues) that the credit business of AGM does not manage; it being understood that the General Partner, in consultation with AGM Credit Senior Management, shall determine whether business segments acquired or created after the date of this Agreement shall be included in the Credit Business.
“Team Member” means (i) a natural person whose services to AGM or its Affiliates are substantially dedicated to AGM’s or its Affiliates’ Credit Business, (ii) a natural person who, following the date hereof, becomes a Retired Partner and who, on or following the date hereof, held Points in his capacity as a Team Member, or (iii) a Related Party of any of the foregoing. 
4.    If you become a Retired Partner, your Points shall be reduced automatically to (i) zero if your retirement is the consequence of a Bad Act and (ii) otherwise, an amount equal to your Vested Points calculated as of your Retirement Date.  Any such reduction shall be effective as of your Retirement Date or such subsequent date as may be determined by the General Partner; provided that the General Partner may agree to a lesser reduction (or to no reduction) of your Points when you become a Retired Partner. 
5.    2.%2.%3.%4.    If any Points become available for reallocation as a result of a reduction pursuant to paragraph 4 or any similar provision in the Award Letter of any other Limited Partner (i) the Points of the Limited Partners shall be adjusted so as to restore them to the number thereof prior to any adjustment described in paragraph 3(b) and (ii) only after such restoration is complete, shall the Partnership have the right to reallocate such remaining forfeited Points.  In each case, the determinations of the General Partner to implement the foregoing shall be final and binding on the Partnership and the Limited Partners.
(a)    If a reduction occurred prior to your Retirement and was applied against your Points and you, as a Retired Partner, have unrestored Points at the time of your Retirement, the quantity of such unrestored Points shall be adjusted at that time by multiplying such amount by the Vesting Percentage applicable to you, as a Retired Partner. 
(b)    After restoration of all previously reduced Points, the General Partner shall determine the manner of reallocating any Points that become available as a result of a reduction pursuant to paragraph 4(a) or any similar provision in the Award Letter or Other Agreement of any other Limited Partner.
(c)    Unless otherwise determined by the General Partner in its good faith discretion, the aggregate amount of forfeited Points reallocated to non-Retired Team Members who hold Points shall be apportioned among them in accordance with the Points held by such Team Members at the time the relevant Points were forfeited. 
IV.    Mandatory Purchases and Repurchases of AGM Shares 
1.    A portion of all distributions to be made to you (whether directly from the Partnership or any other Fund General Partner (as defined in the limited partnership agreement of Partner Pool LP) or indirectly through Partner Pool LP (the “Holdback Amount”) in a given fiscal quarter will be required to be used by you to purchase Class A shares of AGM (“AGM Shares”) in accordance with the terms and conditions set forth in the Restricted Share Award Agreement under the AGM 2007 Equity Incentive Plan (as defined below) and related grant notice attached hereto as Annex A-1 (the “Restricted Share Award Agreement”) or, to the extent you become a Retired Partner, in accordance with the terms and conditions set forth in the Share Award Agreement under the AGM 2007 Equity Incentive Plan and related grant notice attached hereto as Annex A-2 (the “Retired Partner Share Award Agreement”).  You will be required to make an election under Section 83(b) of the Code with respect to each such purchase of AGM Shares with the Holdback Amount.  The Holdback Amount will be in an amount not exceeding the applicable amounts determined under the following formula, except to the extent reduced by the Executive Committee of AGM:  [ ̃]
2.    The Holdback Amount for a particular quarter, if any, will be distributed to you on the first business day on which a “trading window” for AGM Shares occurs during the calendar quarter following the quarter end to which the distribution relates, or, if earlier, 10 days before the end of such succeeding quarter or, if such date falls on a weekend or holiday, the next preceding business day (the “Grant Date”).  
3.    An Affiliate of AGM shall serve as agent in effecting the acquisition by you of the AGM Shares on the date such amounts are distributed, and no cash distribution will actually be made to you, but rather, the Holdback Amount will be paid directly to AGM on your behalf to acquire AGM Shares.  In the case of AGM Shares that are subject to vesting pursuant to the terms of the Restricted Share Award Agreement, the vesting commencement date shall be the midpoint of the calendar quarter in which the Holdback Amount was reserved, without regard to the actual date in a subsequent calendar quarter on which such AGM Shares are purchased with such Holdback Amount, except that the vesting commencement date for the initial AGM Shares to be acquired by you with a Holdback Amount shall be [ ̃] (the “Applicable Date”).
4.    The amount of AGM Shares to be acquired on any such distribution date shall be equal to the fair market value of the AGM Shares (calculated based on the volume weighted average price of the AGM Shares on the date such AGM Shares are scheduled to be purchased), rounded down to the nearest whole AGM Share and reduced to reflect any sales commissions or associated costs.  Only whole AGM Shares will be acquired, and cash shall be distributed to you in lieu of fractional AGM Shares.
5.    Delivery of AGM Shares to you shall be subject to your execution of the applicable grant notice (substantially in the form attached as Annex A-1 or Annex A-2, as applicable).
6.    If you have vested Points after you become a Retired Partner, a Holdback Amount shall still apply, but any AGM Shares acquired will not be subject to vesting and may be granted outside of the Apollo Global Management LLC 2007 Equity Incentive Plan (as the same may be amended, supplemented, modified or replaced from time to time, the “AGM 2007 Equity Incentive Plan”).  However, such AGM Shares shall be subject solely to the transfer restrictions and other terms set forth in the Retired Partner Share Award Agreement.  Notwithstanding anything to the contrary herein, if (i) following the distribution of a Holdback Amount to you and (ii) prior to the time of the acquisition of the applicable AGM Shares with respect to such Holdback Amount for you, you become a Retired Partner, then the AGM Shares (that would have otherwise been acquired with the Holdback Amount), or a portion thereof, as applicable, shall be forfeited to the same extent as AGM Shares would have been forfeited if purchased on the distribution date.
7.    In the case of any AGM Shares that are subject to mandatory repurchase by AGM from you pursuant to the provisions of the Restricted Share Award Agreement or the Retired Partner Share Award Agreement, as the case may be, the cash proceeds of such mandatory repurchase shall be contributed by AGM, as agent for you, to the Partnership for distribution to APH and, for all purposes of this Award Letter, such cash contribution shall be treated as contributed by you to the Partnership and will increase your Capital Account, but you shall not have any right to receive any distributions with respect to any such increase in your Capital Account.
8.    For purposes of calculating your Clawback Share and/or Partner Giveback Share, AGM Shares (including, for the avoidance of doubt, any AGM Shares that have previously vested, but excluding any such AGM Shares that have previously been mandatorily repurchased by AGM) shall be valued, without regard to any restrictions thereon and/or whether or not you still retain such AGM Shares, based on the purchase price of such AGM Shares as of the Grant Date.
9.    You will be required to open and maintain a transfer agent account with American Stock Transfer and a brokerage account with Morgan Stanley Smith Barney and/or any replacement transfer agent or brokerage firm selected by AGM (such brokerage firm, the “Designated Broker”) for the purpose of purchasing, holding and disposing of AGM Shares as described hereunder.  For the purposes of purchasing any AGM Shares as required hereunder, you hereby designate AGM as your authorized agent to instruct the Designated Broker to purchase AGM Shares on your behalf (it being understood that AGM will have the right, but not the obligation, to do so).  You hereby (i) agree to execute and deliver such additional documents, certificates and instruments, and perform such additional acts, as may be reasonably requested by AGM as may, in AGM’s determination, be necessary or advisable to carry out the provisions of this paragraph 9, and (ii) authorize AGM or its designee to open any of the foregoing accounts on your behalf.
V.    COF III Required Commitment
You acknowledge and agree that you are subject to the obligations set forth in the “Required Commitment” section of the Award Letter issued to you under the limited partnership agreement of Partner Pool LP and, as provided therein with respect to the Partnership, that breach of such obligations could lead to the forfeiture of your Points, your Required Commitment to Co-Investors (A) and the Fund, and your unvested AGM Shares.
VI.    Recoupment Policy
To the extent mandated by applicable law, stock exchange or accounting rule and as set forth in a written recoupment policy (e.g., with respect to compensation paid based on financial statements that are later found to have been materially misstated) adopted by AGM, AGM Shares awarded hereunder and amounts distributed in respect of Points shall be subject to such law or policy.
VII.    Bad Act and Designated Act
Each of the terms “Bad Act” and “Designated Act” shall have the meanings set forth in Annex B hereto. 
VIII.    Restrictive Covenants
1.    You acknowledge and agree that your willingness to be bound by, and to abide by, the restrictions in favor of AGM regarding confidentiality, non-solicitation, non-interference, non-disparagement and non-competition set forth in Annex C hereto (collectively, the “Restrictive Covenants”), was a material factor in the decision to grant Points to you, and that such grant would not have occurred in the absence of such binding Restrictive Covenants.  You hereby agree to the acknowledgements and covenants set forth on Annex C.
2.    If you materially breach any of your Restrictive Covenants in a jurisdiction where such Restrictive Covenant is invalid or unenforceable, the General Partner may elect to forfeit all or a portion of (i) your Points (whether vested or unvested), and/or (ii) any of your unvested AGM Shares.
3.    AGM will be subject to restrictions in favor of you regarding non-disparagement set forth in paragraph (f) of Annex C.  
4.    The confidentiality and non-disparagement restrictions set forth in Annex C hereto shall survive indefinitely following your Termination.
IX.    Effect of Retirement
Required Commitment:
Upon your becoming a Retired Partner without Cause (as defined in the AGM 2007 Equity Incentive Plan) and other than by reason of a Bad Act, you shall, in your sole discretion, have the option as to whether to continue to fund the outstanding portion of your Required Commitment.  Such option shall be exercised within 90 days following your Retirement Date, by notice in writing to the Partnership and the general partner of Co-Investors (A).
Retirement with Bad Acts:
Upon your becoming a Retired Partner by reason of a Bad Act, all of your Points (whether vested or unvested) and your unvested AGM Shares shall automatically be forfeited in full as of your Termination Date (as defined in Annex C), and Section 4.1(e) of the Partnership Agreement shall not apply to you, but Section 7.3(b) of the Partnership Agreement shall apply to you.
Other Termination:
Upon your Termination (other than due to your Bad Acts), you shall retain such number of Points as is equal to the product of (i) your Vesting Percentage and (ii) all of your Points.  All of your Points that have not theretofore vested (taking into account any Points that vest upon your Termination) shall be forfeited.
X.    Forfeited Points
Upon your Termination, any unvested Points shall be forfeited.  Subject to Section III, any forfeited Points shall be available to be reallocated.
XI.    [Reserved]
XII.    Miscellaneous
1.    No officer, director, employee or agent of AGM or any of its Affiliates shall be personally liable for any action, omission, determination, or interpretation taken or made with respect to the Partnership or any associated documentation.
2.    AGM may, in its sole discretion, decide to deliver any documents related to the Partnership Agreement and any associated documentation by electronic means or to request your consent to participate in any of the foregoing by electronic means.  You hereby consent to receive such documents by electronic delivery and, if requested, to agree to participate therein through an online or electronic system established and maintained by AGM, an Affiliate or a third party designated thereby.    
3.    By your acceptance of, and as a condition of the payment to you of, the initial distributions or other payments on or after the date hereof of any amounts hereunder and under the Partnership Agreement, and in accordance with the Credit Incentive Plan Commitment Letter previously executed by you, you acknowledge and agree that you are subject to this Award Letter, the Partnership Agreement and any other agreements referred to herein or therein and are bound by, and shall be treated as a party to, all of the foregoing agreements (including as the same may be amended or modified from time to time in accordance with their terms).
4.    This Award Letter shall be governed by and construed in accordance with the laws of the State of Delaware without regard to the principles of conflicts of laws that would cause the laws of another jurisdiction to apply.  Any dispute or controversy arising out of or relating to the Partnership, other than injunctive relief in the event of a breach or threatened breach of the Restrictive Covenants, will be settled exclusively by arbitration as provided in the Partnership Agreement, such that the provisions of Section 9.8(b) and 9.8(c) of the Partnership Agreement shall apply mutatis mutandis to this Award Letter.  This Award Letter is binding on and enforceable against the General Partner, the Partnership and you.  This Award Letter may be amended only with the consent of each party hereto. The Partnership or the General Partner may provide copies of this Award Letter to other Persons.  This Award Letter may be executed by facsimile and in one or more counterparts, all of which shall constitute one and the same instrument.
[remainder of page intentionally left blank]

You have confirmed that the above correctly reflects our understanding and agreement with respect to the foregoing matters.

Very truly yours,

APOLLO CREDIT OPPORTUNITY  
ADVISORS III (APO FC) LP

By:    Apollo Credit Opportunity  
    Advisors III (APO FC) GP LLC,
its General Partner

By:                    
Name:    
Title:    

APOLLO CREDIT OPPORTUNITY  
ADVISORS III (APO FC) GP LLC

By:                    
Name:    
Title:    

Restricted AGM Share Award Grant Notice 
and Restricted AGM Share Award Agreement

Share Award Grant Notice 
Share Award Agreement 
(for Retired Partners)

Definitions
“Bad Act” means your:
(i)    commission of an intentional violation of a material law or regulation in connection with any transaction involving the purchase, sale, loan, pledge or other disposition of, or the rendering of investment advice with respect to, any security, asset, futures or forward contract, insurance contract, debt instrument or currency, in each case, that has a significant adverse effect on your ability to perform your services to AGM or any of its Affiliates;
(ii)    commission of an intentional and material breach of a material provision of a written Apollo Code of Conduct (other than any Apollo Code of Conduct adopted after the date of your admission to the Apollo Credit Opportunity Advisors III (APO FC) LP with the primary purpose of creating or finding “Bad Acts”); 
(iii)    commission of intentional misconduct in connection with your performance of services for AGM or any of its Affiliates; 
(iv)    commission of any misconduct that, individually or in the aggregate, has caused or substantially contributed to, or is reasonably likely to cause or substantially contribute to, material economic or reputational harm to AGM or any of its Affiliates (excluding any mistake of judgment made in good faith with respect to a portfolio investment or account managed by AGM or its Affiliates, or a communication made to the principals or other partners, in a professional manner, of a good faith disagreement with a proposed action by AGM or any of its Affiliates); 
(v)    conviction of a felony or plea of no contest to a felony charge, in each case, if such felony relates to AGM or any of its Affiliates; 
(vi)    fraud in connection with your performance of services for AGM or any of its Affiliates; or 
(vii)    embezzlement from AGM or any of its Affiliates or interest holders; 
provided, however, that: 
(a)    you have failed to cure within 15 days after notice thereof, to the extent such occurrence is susceptible to cure, the items set forth in clauses (ii) and (iv); and 
(b)    during the pendency of any felony charge under clause (v), AGM and its Affiliates may suspend payment of any distributions in respect of your Points, and if (I) you are later acquitted or otherwise exonerated from such charge, or (II) your employment or service with AGM or its applicable Affiliate does not terminate, then (A) AGM or its applicable affiliate shall pay to you all such accrued but unpaid distributions with respect to vested Points, with interest calculated from the date such distributions were suspended at the prime lending rate in effect on the date of such suspension, and (B) throughout the period of suspension (or until the date of termination of your employment or service, if earlier), distributions with respect to unvested Points shall continue to accrue, and Points shall continue to vest, in accordance with the terms and conditions set forth herein.
“Designated Act” means your:
(i)    intentional breach of any material provision of an award agreement or any other agreements of AGM or any of its Affiliates;
(ii)    failure to devote a significant portion of your time to performing services as an agent of AGM without the prior written consent of AGM, other than by reason of death or Disability; or 
(iii)    suspension or other disciplinary action against you by an applicable regulatory authority;
provided, however, that you have failed to cure within 15 days after notice thereof, to the extent such occurrence is susceptible to cure, the item set forth in clause (i). 
For purposes of this Annex B, the term “Affiliate” includes Portfolio Companies.
 

Restrictive Covenants
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