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Exhibit 10.14    
    

 
 

FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT    
    

        THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this "Amendment") dated as of August 8, 2007, by and among (i) KKR FINANCIAL
HOLDINGS LLC, a Delaware limited liability company ("KKR Financial"), KKR FINANCIAL CORP., a Maryland corporation ("KKR
Financial Corp.") KKR TRS HOLDINGS, INC., a Delaware corporation ("KKR TRS"), KKR TRS HOLDINGS, LTD., a Cayman
Islands company ("KKR TRS LTD"), KKR FINANCIAL HOLDINGS II, LLC, a Delaware limited liability company ("KKR
Holdings II"), KKR FINANCIAL HOLDINGS III, LLC, a Delaware limited liability company ("KKR Holdings III"), KKR FINANCIAL
HOLDINGS, INC., a Delaware corporation ("KKR Holdings"), and KKR FINANCIAL HOLDINGS, LTD., a Cayman Islands company
("KKR Holdings LTD," and collectively with KKR Financial, KKR Financial Corp., KKR TRS, KKR TRS LTD, KKR Holdings II, KKR Holdings III and
KKR Holdings, the "Borrowers" and each, individually, a "Borrower"), (ii) each lender party
hereto (collectively, the "Lenders" and individually, a "Lender"), and (iii) BANK OF AMERICA,
N.A., as Administrative Agent and Swingline Lender. 

        WHEREAS,
the Borrowers, the Lenders and the Administrative Agent have entered into that certain Second Amended and Restated Credit Agreement, dated as of May 4, 2007 (the
"Credit Agreement;" capitalized terms used herein and not defined to have the meanings ascribed to such terms in the Credit Agreement); and 

        WHEREAS,
the Borrowers, the Lenders and the Administrative Agent desire to amend certain provisions of the Credit Agreement on the terms and conditions contained herein. 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby agree as follows: 

        Section 1.    Amendment to Credit Agreement.    The parties hereto agree that, effective as of the date hereof,
Section 7.05(b) of the Credit Agreement shall be amended to read as follows: 

"(b)    Dispositions
of residential real estate assets of the Borrowers (including, without limitation, the Disposition of mortgage-backed securities), so long as no Default or Event of
Default has occurred and is continuing or would be caused thereby; provided, however that, to the extent
any such residential real estate assets constitute Collateral, Borrowers shall comply with the Security Documents with respect to any Dispositions thereof;". 

        Section 2.    Conditions Precedent.    The effectiveness of this Amendment is subject to receipt by the
Administrative Agent of an original counterpart of this Amendment duly executed by each of the Borrowers, Required Lenders and the Administrative Agent. 

        Section 3.    Effect of Amendment.    

        (a)   Except
as specifically modified by this Amendment, the terms and provisions of the Credit Agreement are ratified and confirmed by the parties hereto and remain in full
force and effect. 

        (b)   Each
of the Borrowers, the Administrative Agent and each Lender agrees that this Amendment shall constitute a Loan Document and, upon the effectiveness of this
Amendment, each reference in the Credit Agreement to "this Agreement", "hereunder", "hereof", "herein" or words of like import referring to the Credit Agreement, and each reference in the other Loan
Documents to the "Credit Agreement", "thereunder", "thereof", "therein" or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended by
this Amendment. 

        Section 4.    Expenses.    The Borrower shall reimburse the Administrative Agent upon demand for all reasonable
out-of-pocket costs and expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent) in connection with the preparation, negotiation, execution, delivery and administration of this Amendment and any other agreements and documents executed and delivered in
connection herewith. 

 

        Section 5.    Successors and Assigns.    The provisions of this Amendment shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. 

        Section 6.    GOVERNING LAW.    THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW
OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CHOICE OF LAW PROVISIONS THEREOF OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 

        Section 7.    Effect.    Except as expressly herein amended, the terms and conditions of the Credit Agreement
and the other Loan Documents remain in full force and effect. The amendments contained herein shall be deemed to have prospective application only, unless otherwise specifically stated herein. 

        Section 8.    Counterparts; Integration.    This Amendment may be executed in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. 

2

        IN
WITNESS WHEREOF, the parties hereto have caused this First Amendment to Second Amended and Restated Credit Agreement to be executed as of the date first above written. 

	 	 	KKR FINANCIAL HOLDINGS LLC
	

 	
 	

By:	
 	

/s/ Andrew J. Sossen
 Name: Andrew J. Sossen

Title: Authorized Signatory
	

 	
 	
KKR FINANCIAL HOLDINGS II, LLC
	

 	
 	

By:	
 	

/s/ Andrew J. Sossen
 Name: Andrew J. Sossen

Title: Authorized Signatory
	

 	
 	
KKR FINANCIAL HOLDINGS III, LLC
	

 	
 	

By:	
 	

/s/ Andrew J. Sossen
 Name: Andrew J. Sossen

Title: Authorized Signatory
	

 	
 	
KKR FINANCIAL HOLDINGS, INC.
	

 	
 	

By:	
 	

/s/ Andrew J. Sossen
 Name: Andrew J. Sossen

Title: Authorized Signatory
	

 	
 	
KKR FINANCIAL HOLDINGS, LTD.
	

 	
 	

By:	
 	

/s/ Geoffrey M. Jones
 Name: Geoffrey M. Jones

Title: Authorized Signatory
	

 	
 	
KKR FINANCIAL CORP.
	

 	
 	

By:	
 	

/s/ Geoffrey M. Jones
 Name: Geoffrey M. Jones

Title: Authorized Signatory
	

 	
 	
KKR TRS HOLDINGS, INC.
	

 	
 	

By:	
 	

/s/ Geoffrey M. Jones
 Name: Geoffrey M. Jones

Title: Authorized Signatory
	

 	
 	
KKR TRS HOLDINGS, LTD.
	

 	
 	

By:	
 	

/s/ Geoffrey M. Jones
 Name: Geoffrey M. Jones

Title: Authorized Signatory

	 	 	BANK OF AMERICA, N.A., as

Administrative Agent
	

 	
 	

By:	
 	

/s/ Alexa B. Bradford
 Name: Alexa B. Bradford

Title: Senior Vice President

	 	 	BANK OF AMERICA, N.A., as a Lender,

and Swingline Lender
	

 	
 	

By:	
 	

/s/ Alexa B. Bradford
 Name: Alexa B. Bradford

Title: Senior Vice President

	 	 	CITIGROUP GLOBAL MARKETS INC., as

a Syndication Agent
	

 	
 	

By:	
 	

/s/ Alexander F. Duka
 Name: Alexander F. Duka

Title: Managing Director/Senior Credit Officer

	 	 	CITICORP NORTH AMERICA, INC., as a

Lender
	

 	
 	

By:	
 	

/s/ Alexander F. Duka
 Name: Alexander F. Duka

Title: Managing Director/Senior Credit Officer

	 	 	BANK OF NOVA SCOTIA, as a Lender
	

 	
 	

By:	
 	

/s/ John Morale
 Name: John Morale

Title: Managing Director

	 	 	CREDIT SUISSE, CAYMAN ISLANDS

BRANCH, as a Lender
	

 	
 	

By:	
 	

/s/ Thomas Cantello
 Name: Thomas Cantello

Title: Director
	

 	
 	

By:	
 	

/s/ James Neira
 Name: James Neira

Title: Associate

	 	 	GOLDMAN SACHS & CO. INC., as a Lender
	

 	
 	

By:	
 	

/s/ David J. Rosenblum
 Name: David J. Rosenblum

Title: Managing Director

	 	 	ROYAL BANK OF CANADA, as a Lender
	

 	
 	

By:	
 	

/s/ Howard Lee
 Name: Howard Lee

Title: Authorized Signatory

	 	 	COMMERZBANK

AKTIENGESELLSCHAFT, as a Lender
	

 	
 	

By:	
 	

/s/ William M. Earley
 Name: William M. Earley

Title: Senior Vice President
	

 	
 	

By:	
 	

/s/ Joseph I. Hayes
 Name: Joseph I. Hayes

Title: Vice President

	 	 	FORTIS CAPITAL CORP., as a Lender
	

 	
 	

By:	
 	

/s/ Barry Chung
 Name: Barry Chung

Title: Senior Vice President
	

 	
 	

By:	
 	

/s/ William Koster
 Name: William Koster

Title: Director

	 	 	MIZUHO CORPORATE BANK, LTD., as a

Lender
	

 	
 	

By:	
 	

/s/ James R. Fayen
 Name: James R. Fayen

Title: Deputy General Manager

	 	 	WACHOVIA BANK, NATIONAL

ASSOCIATION, as a Lender
	

 	
 	

By:	
 	

/s/ Karen Hanke
 Name: Karen Hanke

Title: Director

	 	 	FIRST COMMERCIAL BANK, LOS

ANGELES BRANCH, as a Lender
	

 	
 	

By:	
 	

/s/ Larry Jen-Yu Lai
 Name: Larry Jen-Yu Lai

Title: SAVP & Deputy General Manager

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Exhibit 10.14

FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENTQuickLinks
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Exhibit 10.15    
    

 
 

SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT    
    

        THIS SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this "Amendment") dated as of
August 14, 2007, by and among (i) KKR FINANCIAL HOLDINGS LLC, a Delaware limited liability company ("KKR Financial"), KKR FINANCIAL
CORP., a Maryland corporation ("KKR Financial Corp.") KKR TRS HOLDINGS, INC., a Delaware corporation ("KKR
TRS"), KKR TRS HOLDINGS, LTD., a Cayman Islands company ("KKR TRS LTD"), KKR FINANCIAL HOLDINGS II, LLC, a
Delaware limited liability company ("KKR Holdings II"), KKR FINANCIAL HOLDINGS III, LLC, a Delaware limited liability company
("KKR Holdings III"), KKR FINANCIAL HOLDINGS, INC., a Delaware corporation ("KKR Holdings"), and
KKR FINANCIAL HOLDINGS, LTD., a Cayman Islands company ("KKR Holdings LTD," and collectively with KKR Financial, KKR Financial Corp., KKR
TRS, KKR TRS LTD, KKR Holdings II, KKR Holdings III and KKR Holdings, the "Borrowers" and each, individually, a
"Borrower"), (ii) each lender party hereto (collectively, the "Lenders" and individually, a
"Lender"), and (iii) BANK OF AMERICA, N.A., as Administrative Agent and Swingline Lender. 

        WHEREAS,
the Borrowers, the Lenders and the Administrative Agent have entered into that certain Second Amended and Restated Credit Agreement, dated as of May 4, 2007 (as amended
prior to the date hereof, the "Credit Agreement;" capitalized terms used herein and not defined to have the meanings ascribed to such terms in the
Credit Agreement); and 

        WHEREAS,
the Borrowers, the Lenders and the Administrative Agent desire to amend certain provisions of the Credit Agreement on the terms and conditions contained herein. 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby agree as follows: 

        Section 1.    Amendments to Credit Agreement.    The parties hereto agree that, effective as of the date
hereof, the Credit Agreement shall be amended as follows: 

        1.1   The
definition of "Change of Control" in Section 1.01 of the Credit Agreement is amended to insert the words "(other than KKR Financial Corp.)" immediately after
the words "any Borrower" in clause (c) of such definition. 

        1.2   The
definition of "Consolidated Total Liabilities" in Section 1.01 of the Credit Agreement is amended to insert the following as the last sentence thereof: 

"Notwithstanding
the foregoing, Consolidated Total Liabilities shall not include liabilities arising out of any Disposition by KKR Financial Corp. of all of its residential real estate assets as
contemplated by Section 7.05(b) (i) that are nonrecourse to the Borrowers and (ii) are recorded by KKR Financial based on required application of FAS 140 or
FIN-46(R)." 

        1.3   Section 6.05
of the Credit Agreement shall be amended to delete the last sentence thereof in its entirety. 

        1.4   Section 7.05
of the Credit Agreement shall be amended to (i) in Section 7.05(b), insert the phrase "(without recourse or indemnification for credit
losses, provided that ordinary and customary indemnification is permitted in accordance with prevailing market practices)" immediately after the first usage of the term "Dispositions"
(ii) delete the word "and" at the end of Section 7.05(f), (iii) delete the "." at the end of Section 7.05(g) and insert "; and" in its place and (iv) insert a new
Section 7.05(h) to read as follows: 

        "(h) the
Disposition (without recourse or indemnification for credit losses, provided that ordinary and customary indemnification is permitted in accordance with prevailing
market practices) by KKR Financial of all of the common stock of KKR Financial Corp." 

        1.5   Section 7.09
of the Credit Agreement shall be amended to read as follows: 

 

        "(b)     Leverage Ratio.    Permit the ratio of Consolidated Total Liabilities to Consolidated Tangible
Net Worth, at any time, to exceed the ratio of 12.50 to 1.00; provided, that effective upon the consummation of any Disposition by KKR Financial Corp. of all of its residential real estate assets as
contemplated by Section 7.05(b) (provided that up to $1.0 billion of residential real estate assets may remain on the balance sheet of KKR Financial Corp. and KKR Financial and its
Affiliates after giving effect to such Disposition), the foregoing reference to 12.50 shall be a reference to 7.00." 

        Section 2.    Release.    Effective upon the consummation of any Disposition by KKR Financial of all of the
common stock of KKR Financial Corp., the Administrative Agent and the Lenders hereby release KKR Financial Corp. as a Borrower and Loan Party under the Credit Agreement and the other Loan Documents.
The Borrowers consent to the release of KKR Financial Corp. effected hereby, and ratify and reaffirm all of their joint and several obligations under the Credit Agreement and the other Loan Documents,
as modified hereby. The parties acknowledge and agree that, upon the consummation of such Disposition, KKR Financial Corp. shall no longer be a Subsidiary of KKR Financial. 

        Section 3.    Conditions Precedent.    The effectiveness of this Amendment is subject to receipt by the
Administrative Agent of an original counterpart of this Amendment duly executed by each of the Borrowers, Required Lenders and the Administrative Agent. 

        Section 4.    Effect of Amendment.    

        (a)   Each
of the Borrowers agrees that there is no Default nor Event of Default in existence, nor would a Default nor an Event of Default be caused by this Amendment or the
implementation of the matters reflected herein. 

        (b)   Except
as specifically modified by this Amendment, the terms and provisions of the Credit Agreement are ratified and confirmed by the parties hereto and remain in full
force and effect. 

        (c)   Each
of the Borrowers, the Administrative Agent and each Lender agrees that this Amendment shall constitute a Loan Document and, upon the effectiveness of this
Amendment, each reference in the Credit Agreement to "this Agreement", "hereunder", "hereof", "herein" or words of like import referring to the Credit Agreement, and each reference in the other Loan
Documents to the "Credit Agreement", "thereunder", "thereof", "therein" or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended by
this Amendment. 

        Section 5.    Fee; Expenses.    The Borrowers agree to pay to the Administrative Agent for the ratable benefit
of each of the Lenders executing and delivering this Amendment a non-refundable amendment fee of 0.05% of the aggregate Commitments of such Lenders. The Borrowers shall reimburse the
Administrative Agent upon demand for all reasonable out-of-pocket costs and expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees,
charges and disbursements of counsel for the Administrative Agent) in connection with the preparation, negotiation, execution, delivery and administration of this Amendment and any other agreements
and documents executed and delivered in connection herewith. 

        Section 6.    Successors and Assigns.    The provisions of this Amendment shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. 

        Section 7.    GOVERNING LAW.    THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW
OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CHOICE OF LAW PROVISIONS THEREOF OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 

2

 

        Section 8.    Effect.    Except as expressly herein amended, the terms and conditions of the Credit Agreement
and the other Loan Documents remain in full force and effect. The amendments contained herein shall be deemed to have prospective application only, unless otherwise specifically stated herein. 

        Section 9.    Counterparts; Integration.    This Amendment may be executed in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. 

3

        IN
WITNESS WHEREOF, the parties hereto have caused this First Amendment to Second Amended and Restated Credit Agreement to be executed as of the date first above written. 

	 	 	KKR FINANCIAL HOLDINGS LLC
	

 	
 	

By:	
 	

/s/ Andrew J. Sossen
 Name: Andrew J. Sossen

Title: Authorized Signatory
	

 	
 	
KKR FINANCIAL HOLDINGS II, LLC
	

 	
 	

By:	
 	

/s/ Andrew J. Sossen
 Name: Andrew J. Sossen

Title: Authorized Signatory
	

 	
 	
KKR FINANCIAL HOLDINGS III, LLC
	

 	
 	

By:	
 	

/s/ Andrew J. Sossen
 Name: Andrew J. Sossen

Title: Authorized Signatory
	

 	
 	
KKR FINANCIAL HOLDINGS, INC.
	

 	
 	

By:	
 	

/s/ Andrew J. Sossen
 Name: Andrew J. Sossen

Title: Authorized Signatory
	

 	
 	
KKR FINANCIAL HOLDINGS, LTD.
	

 	
 	

By:	
 	

/s/ Geoffrey M. Jones
 Name: Geoffrey M. Jones

Title: Authorized Signatory
	

 	
 	
KKR FINANCIAL CORP.
	

 	
 	

By:	
 	

/s/ Geoffrey M. Jones
 Name: Geoffrey M. Jones

Title: Authorized Signatory

	 	 	KKR TRS HOLDINGS, INC.
	

 	
 	

By:	
 	

/s/ Geoffrey M. Jones
 Name: Geoffrey M. Jones

Title: Authorized Signatory
	

 	
 	
KKR TRS HOLDINGS, LTD.
	

 	
 	

By:	
 	

/s/ Geoffrey M. Jones
 Name: Geoffrey M. Jones

Title: Authorized Signatory

	 	 	BANK OF AMERICA, N.A., as

Administrative Agent
	

 	
 	

By:	
 	

/s/ Paula Laesch
 Name: Paula Laesch

Title: Vice President

	 	 	BANK OF AMERICA, N.A., as a Lender,

and Swingline Lender
	

 	
 	

By:	
 	

/s/ Paula Laesch
 Name: Paula Laesch

Title: Vice President

	 	 	CITIGROUP GLOBAL MARKETS INC., as

a Syndication Agent
	

 	
 	

By:	
 	

/s/ Paul A. DeCarlo
 Name: Paul A. DeCarlo

Title: SVP/SCO, as proxy for Alex Duka

	 	 	CITICORP NORTH AMERICA, INC., as a

Lender
	

 	
 	

By:	
 	

/s/ Paul A. DeCarlo
 Name: Paul A. DeCarlo

Title: SVP/SCO, as proxy for Alex Duka

	 	 	JPMORGAN CHASE BANK, N.A., as a

Syndication Agent and a Lender
	

 	
 	

By:	
 	

/s/ Richard J. Poworoznek
 Name: Richard J. Poworoznek

Title: Executive Director

	 	 	BANK OF NOVA SCOTIA, as a Lender
	

 	
 	

By:	
 	

/s/ Todd Meller
 Name: Todd Meller

Title: Managing Director

	 	 	CREDIT SUISSE, CAYMAN ISLANDS

BRANCH, as a Lender
	

 	
 	

By:	
 	

/s/ Jay Chall
 Name: Jay Chall

Title: Director
	

 	
 	

By:	
 	

/s/ James Neira
 Name: James Neira

Title: Associate

	 	 	ROYAL BANK OF CANADA, as a Lender
	

 	
 	

By:	
 	

/s/ Howard Lee
 Name: Howard Lee

Title: Authorized Signatory

	 	 	FORTIS CAPITAL CORP., as a Lender
	

 	
 	

By:	
 	

/s/ Barry Chung
 Name: Barry Chung

Title: Senior Vice President
	

 	
 	

By:	
 	

/s/ Alan Krouk
 Name: Alan Krouk

Title: Managing Director

	 	 	MIZUHO CORPORATE BANK, LTD., as a

Lender
	

 	
 	

By:	
 	

/s/ James R. Fayen
 Name: James R. Fayen

Title: Deputy General Manager

	 	 	WACHOVIA BANK, NATIONAL

ASSOCIATION, as a Lender
	

 	
 	

By:	
 	

/s/ Karen Hanke
 Name: Karen Hanke

Title: Director

	 	 	FIRST COMMERCIAL BANK, LOS

ANGELES BRANCH, as a Lender
	

 	
 	

By:	
 	

/s/ Milton Ming-Der Shine
 Name: Milton Ming-Der Shine

Title: Vice President & General Manager

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Exhibit 10.15

SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

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