Document:

Exhibit 10.2

 

Execution Version

 

Amendment and Joinder Agreement to

Exchange Agreement

 

Amendment and Joinder Agreement, dated as of August 5, 2014 (this “Amendment and Joinder Agreement”) among KKR Management Holdings L.P., KKR Fund Holdings L.P., KKR Holdings L.P., KKR & Co. L.P., KKR Group Holdings L.P., KKR Subsidiary Partnership L.P., and KKR Group Limited (collectively, the “Existing Parties”), and KKR International Holdings L.P., a Cayman Islands limited partnership (“KKR International Holdings”), to the Agreement (as defined below).

 

W I T N E S S E T H

 

WHEREAS, the original Exchange Agreement among KKR Management Holdings L.P., KKR Fund Holdings L.P., KKR Holdings L.P. and KKR & Co. L.P. was executed as of July 14, 2010 in order to provide the parties with certain rights and obligations with respect to the exchange of certain Group Partnership Units for Common Units by certain persons;

 

WHEREAS, the Existing Parties heretofore executed and delivered an Amended and Restated Exchange Agreement, dated as of November 2, 2010 (the “Agreement”);

 

WHEREAS, KKR Group Holdings L.P. has designated KKR International Holdings as a Group Partnership under the Agreement, and KKR Group Holdings L.P. is the General Partner of KKR International Holdings (such General Partner and any successor General Partner of KKR International Holdings that may replace KKR Group Holdings L.P., “Group Partnership III General Partner”);

 

WHEREAS, each of the Existing Parties and KKR International Holdings desires that KKR International Holdings becomes a party to the Agreement as a Group Partnership;

 

WHEREAS, in connection with the designation of KKR International Holdings as a Group Partnership, the parties hereto desire to amend and make related changes to the Agreement; and

 

WHEREAS, the right to exchange Group Partnership Units set forth in Section 2.1(a) of the Agreement, once exercised, represents a several, and not a joint and several, obligation of the Group Partnerships (on a pro rata basis), and no Group Partnership shall have any obligation or right to acquire Group Partnership Units issued by another Group Partnership.

 

Capitalized terms used herein but not defined herein shall have the meanings assigned to such terms in the Agreement.

 

NOW, THEREFORE, the parties hereto hereby agree as follows:

 

 

1.             Amendment to Section 2.1 of the Agreement.

 

(a)   Section 2.1(a)(i)(x) of the Agreement is hereby amended and replaced in its entirety to read as follows:

 

“(x) the delivery on a pro rata basis (determined by reference to the relative fair market values of the Group Partnership I Units, Group Partnership II Units and Group Partnership III Units) by the Group Partnerships of a number of Common Units (acquired from the Issuer) equal to the number of Group Partnership Units surrendered multiplied by the Exchange Rate or”

 

(b)   The second sentence of Section 2.1(a)(i) of the Agreement is hereby amended and replaced in its entirety to read as follows:

 

“Simultaneous with any such Exchange pursuant to clause (x) above, Group Partnership I Units shall be issued to Group Partnership Holdco, Group Partnership II Units shall be issued to Subsidiary Partnership and Group Partnership III Units shall be issued to Group Partnership III General Partner in an amount equal to the number of Group Partnership I Units, Group Partnership II Units or Group Partnership III Units surrendered to each such Group Partnership.”

 

(c)   The first sentence of Section 2.1(a)(ii) of the Agreement is hereby amended and replaced in its entirety to read as follows:

 

“For purposes of making a Charitable Exchange or a Non-U.S. Exchange, a KKR Holdings Affiliated Person may surrender Group Partnership Units (other than Group Partnership III Units, which shall be surrendered to Group Partnership III General Partner) to the Issuer in exchange for the delivery of a number of Common Units equal to the Issuer’s pro rata portion (determined by reference to the relative fair market values of the Group Partnership I Units surrendered to the Issuer, the Group Partnership II Units surrendered to the Issuer and the Group Partnership III Units surrendered to Group Partnership III General Partner) of the number of Group Partnership Units surrendered to the Issuer and Group Partnership III General Partner multiplied by the Exchange Rate, provided , however, the Issuer may instead require that the Group Partnership I Units the KKR Holdings Affiliated Person intends to surrender be owned by one or more Corporate Holdcos prior to surrender, in which case the number of Common Units delivered pursuant to the Exchange will be equal to the total Group Partnership Units that are surrendered, taking into account those owned by the Corporate Holdcos whose interests are surrendered, multiplied by the Exchange Rate.”

 

(d)   Section 2.1(c) of the Agreement is hereby amended by deleting the word “and” and replacing the same with a comma.

 

(e)   Section 2.1(c) of the Agreement is hereby amended by inserting the phrase “and Group Partnership III General Partner (with respect to Group Partnership III Units),” before

 

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the word “shall”.

 

2.             Amendment to Section 3.10 of the Agreement.  Section 3.10 of the Agreement is hereby amended by:

 

(a)  deleting the word “either” and replacing the same with “a particular”;

 

(b) inserting the phrase “and, in the case of Group Partnership III, as a taxable sale of Group III Partnership Units by KKR Holdings or a KKR Holdings Affiliated Person to Group Partnership III General Partner” after the words “Subsidiary Partnership” in the second sentence of Section 3.10; and

 

(c)   replacing the third sentence of Section 3.10 in its entirety to read as follows:

 

“The parties shall report any Charitable Exchange or Non-U.S. Exchange consummated pursuant to Section 2.1(a)(ii) hereof as (i) a contribution of Group Partnership I Units (or Corporate Holdco interests), and Group Partnership II Units to the Issuer described in Section 721(a) of the Code, followed by a tax free contribution of such Group Partnership I Units (or Corporate Holdco interests) to the appropriate Group Partnership Holdco pursuant to Section 351 of the Code and (ii) a taxable sale of Group Partnership III Units to Group Partnership III General Partner, and no party shall take a contrary position on any income tax return, amendment thereof or communication with a taxing authority.”

 

3.             Amendments to Exhibits A, B and C to the Agreement.  Exhibits A, B and C to the Agreement shall be amended to reflect the effects of this Amendment and Joinder Agreement.

 

4.             Joinder.  KKR International Holdings acknowledges that it has received and reviewed a copy of the Agreement and all other documents it deems fit to enter into this Amendment and Joinder Agreement, and acknowledges and agrees to (i) join and become a party to the Agreement as indicated by its signature below; (ii) be bound by all covenants, agreements, representations, warranties and acknowledgements attributable to a Group Partnership in the Agreement as if made by, and with respect to, a Group Partnership; and (iii) perform all obligations and duties required of a Group Partnership and be entitled to all rights and privileges of a Group Partnership pursuant to the Agreement.

 

5.             Tax Treatment. To the extent the Agreement imposes obligations upon KKR International Holdings or the Group Partnership III General Partner, the Agreement shall be treated as part of the partnership agreement of KKR International Holdings as described in Section 761(c) of the Code and Sections 1.704-1(b)(2)(ii)(h) and 1.761-1(c) of the Treasury Regulations.

 

6.             Governing Law.  This Amendment and Joinder Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.

 

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7.             Miscellaneous.  Sections 3.1, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, and 3.9 of the Agreement shall apply to this Amendment and Joinder Agreement, mutatis mutandis.

 

[Signature pages follow]

 

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IN WITNESS WHEREOF, this Amendment and Joinder Agreement has been duly executed and delivered by the undersigned as of the date first above written.

 

 

	
 
    	
KKR   INTERNATIONAL HOLDINGS L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
KKR Fund Holdings GP Limited,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ William Janetschek
    
	
 
    	
 
    	
Name: 
    	
William Janetschek
    
	
 
    	
 
    	
Title: 
    	
Director
    
	
 
    	
 
    
	
 
    	
And
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
KKR Group Holdings L.P.,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
KKR Group Limited, the general partner   of 
    
	
 
    	
 
    	
KKR Group Holdings L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ William Janetschek
    
	
 
    	
 
    	
Name: 
    	
William Janetschek
    
	
 
    	
 
    	
Title: 
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KKR MANAGEMENT HOLDINGS L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
KKR Management Holdings Corp.,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ William Janetschek
    
	
 
    	
 
    	
Name: 
    	
William Janetschek
    
	
 
    	
 
    	
Title: 
    	
Chief Financial Officer
    

 

[Signature Page to Amendment and Joinder Agreement to Exchange Agreement]

 

 

	
 
    	
KKR FUND HOLDINGS L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
KKR Fund Holdings GP Limited,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ William Janetschek
    
	
 
    	
 
    	
Name: 
    	
William Janetschek
    
	
 
    	
 
    	
Title: 
    	
Director
    
	
 
    	
 
    
	
 
    	
And
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
KKR Group Holdings L.P.,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
KKR Group Limited, the general partner   of 
    
	
 
    	
 
    	
KKR Group Holdings L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ William Janetschek
    
	
 
    	
 
    	
Name: 
    	
William Janetschek
    
	
 
    	
 
    	
Title: 
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KKR HOLDINGS L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
KKR Holdings GP Limited,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ William Janetschek
    
	
 
    	
 
    	
Name: 
    	
William Janetschek
    
	
 
    	
 
    	
Title: 
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
KKR & CO. L.P.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
KKR Management LLC,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ William Janetschek
    
	
 
    	
 
    	
Name:
    	
William Janetschek
    
	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    

 

[Signature Page to Amendment and Joinder Agreement to Exchange Agreement]

 

 

 

	
 
    	
KKR GROUP HOLDINGS L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
KKR Group Limited,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ William Janetschek
    
	
 
    	
 
    	
Name: 
    	
William Janetschek
    
	
 
    	
 
    	
Title: 
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KKR SUBSIDIARY PARTNERSHIP L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
KKR Group Holdings L.P.,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
KKR Group Limited,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ William Janetschek
    
	
 
    	
 
    	
Name: 
    	
William Janetschek
    
	
 
    	
 
    	
Title: 
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KKR GROUP LIMITED
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ William Janetschek
    
	
 
    	
 
    	
Name: 
    	
William Janetschek
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[Signature Page to Amendment and Joinder Agreement to Exchange Agreement]Exhibit 10.3

 

Execution Version

 

Amendment to

Second Amended and Restated Limited Partnership Agreement of

KKR Fund Holdings L.P.

 

Amendment, dated August 5, 2014 (this “Amendment”) among KKR Group Holdings L.P., an exempted limited partnership formed under the laws of the Cayman Islands (“KKR Group Holdings”), and KKR Fund Holdings GP Limited, an exempted company formed under the laws of the Cayman Islands (“KKR Fund Holdings GP”), as general partners, and KKR Intermediate Partnership L.P., a Cayman Islands exempted limited partnership (“KKR Intermediate Partnership”), as limited partner, to the Second Amended and Restated Limited Partnership Agreement, dated October 1, 2009 (the “Agreement”), of KKR Fund Holdings L.P. (the “Partnership”).

 

W I T N E S S E T H

 

WHEREAS, the Partners (capitalized terms used in this Amendment but not defined herein shall have the meanings assigned to such terms in the Agreement) wish to amend the Agreement pursuant to Section 10.12 of the Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises and agreements herein made and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.                                      Amendments to Section 9.02(a) of the Agreement.

 

(a)  Section 9.02 (a) of the Agreement is hereby amended by inserting, after the first sentence of Section 9.02(a), the following new sentence:

 

“A director, officer, partner, trustee, manager, member, employee or agent of a wholly-owned subsidiary of the Partnership or any other subsidiary designated from time to time by the Partnership (a “ Subsidiary Person”) will be deemed to be serving at the request of the Partnership as a director, officer, partner, trustee, manager, member, employee or agent of such subsidiary as an Other Company for purposes of this Section 9.02 (regardless of whether such person is or was a director, officer, partner, trustee, manager, member, employee or agent of a Partner), and the Partnership shall indemnify such Subsidiary Person in accordance with this Section 9.02; provided that such person shall not be entitled to indemnification hereunder to the extent (i) such person’s conduct constituted fraud, bad faith or willful misconduct or (ii) such person’s actions or omissions were not made during the course of performing or otherwise in connection with (x) his or her duties as a director, officer, partner, trustee, manager, member, employee or agent of such subsidiary or an affiliate thereof or (y) a request made by such subsidiary or an affiliate thereof.”

 

(b)   The second sentence of Section 9.02(a) is hereby amended by:

 

 

(i) Deleting the words “preceding sentence” and replacing the same with “foregoing two sentences”;

 

(ii)   Deleting the words “such sentence” and replacing the same with “the foregoing sentences”; and

 

(iii)  Adding the words “or, in the case of a Subsidiary Person, such subsidiary or a General Partner” after the words “authorized by a General Partner”;

 

(c)   The third sentence of Section 9.02(a) is hereby amended by:

 

(i)  Adding the words “(including such subsidiary)” after the words “the relevant Other Company”; and

 

(ii)  Deleting the words “first sentence” and replacing the same with “first two sentences”.

 

2.                                      The Agreement is hereby amended by the insertion of the following new Section 7.11:

 

“SECTION 7.11.                                  Conversion of Interest of General Partner. Notwithstanding any other provision in this Agreement, a General Partner may, without the consent of any other Partner, elect to convert all or a portion of its interest in the Partnership that is held or deemed to be held by it as a limited partner of the Partnership so that it is held or deemed to be held by such General Partner as a general partner of the Partnership for the purposes of this Agreement and the Act.”

 

3.                                      The Agreement is hereby amended by the insertion of the following new Section 3.07:

 

“SECTION 3.07.                                  Authority to Bind the Partnership. Notwithstanding any other provision in this Agreement, any one General Partner may, without the consent of any other Partner, exercise any authority, consent or power granted to the General Partners pursuant to this Agreement or the Act to the exclusion of any other General Partner and each General Partner (the “Appointing General Partner”) hereby appoints each other General Partner as its agent and attorney-in-fact, with power of substitution, to undertake all or any acts on behalf of the Appointing General Partner, including, without limitation, to enter into all letters, contracts, deeds, instruments or documents whatsoever to be entered into on behalf of the Appointing General Partner on behalf of the Partnership.”

 

4.                                      Section 10.13 of the Agreement is hereby deleted in its entirety and replaced with the following:

 

“SECTION 10.13.                           No Third Party Beneficiaries.  This Agreement shall be binding upon and inure solely to the benefit of the parties hereto and their permitted assigns and successors and nothing herein, express or implied, is intended to or shall

 

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confer upon any other Person or entity, any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement; provided that each Person entitled to indemnification pursuant to Section 9.02 of this Agreement (i) may in such Person’s own right enforce Section 9.02 subject to and in accordance with the provisions of the Contracts (Rights of Third Parties) Law, 2014, as it may be amended from time to time, but (ii) shall not be entitled or required to consent to any amendment, variation or rescission of Section 9.02 or have any right under Section 10.12 or any other section of this Agreement.”

 

5.                                      Restatement.  Each General Partner is authorized to restate the Agreement to reflect the provisions of this Amendment.

 

6.                                      Governing Law.  This Amendment shall be governed by, and construed in accordance with, the laws of the Cayman Islands, without regard to otherwise governing principles of conflicts of law.

 

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

 

8.                                      Counterparts.   This Amendment may be executed and delivered (including by facsimile transmission) in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original but all of which taken together shall constitute one and the same amendment. Copies of executed counterparts transmitted by telecopy or other electronic transmission service shall be considered original executed counterparts for purposes of this paragraph 8.

 

[Rest of page intentionally left blank.]

 

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IN WITNESS WHEREOF, this Amendment has been duly executed and delivered as a deed by the undersigned on the date first above written.

 

Executed and delivered as a deed by:

 

KKR GROUP HOLDINGS L.P.

 

	
By:
    	
KKR Group Limited,
    	
 
    	
 
    
	
 
    	
its general partner
    	
 
    	
Witnessed by:
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ William Janetschek
    	
 
    	
/s/ Christopher Lee
    
	
 
    	
Name: William Janetschek
    	
 
    	
Name: Christopher Lee
    
	
 
    	
Title:     Director
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Executed and   delivered as a deed by:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
KKR FUND   HOLDINGS GP LIMITED
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Witnessed by:
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ William Janetschek
    	
 
    	
/s/ Christopher Lee
    
	
 
    	
Name: William Janetschek
    	
 
    	
Name: Christopher Lee
    
	
 
    	
Title:     Director
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Executed and   delivered as a deed by:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
KKR INTERMEDIATE   PARTNERSHIP L.P.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
KKR Intermediate Partnership GP Limited,
    	
 
    	
 
    
	
 
    	
its general partner
    	
 
    	
Witnessed by:
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ William Janetschek
    	
 
    	
/s/ Christopher Lee
    
	
 
    	
Name: William Janetschek
    	
 
    	
Name: Christopher Lee
    
	
 
    	
Title:     Director
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
And
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
KKR & Co. L.L.C.,
    	
 
    	
 
    
	
 
    	
its general partner
    	
 
    	
Witnessed by:
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ William Janetschek
    	
 
    	
/s/ Christopher Lee
    
	
 
    	
Name: William Janetschek
    	
 
    	
Name: Christopher Lee
    
	
 
    	
Title:     Authorized Person
    	
 
    	
 
    

 

Signature Page to Amendment to 
  Second Amended and Restated Limited Partnership Agreement of KKR Fund Holdings L.P.

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