Document:

Exhibit-10.2

 

 

 

SECOND
AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT

 

 

OF

 

 

KKR FUND HOLDINGS L.P.

 

 

Dated as of October 1, 2009

 

 

 

 

THE PARTNERSHIP UNITS OF KKR
FUND HOLDINGS L.P. HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED, THE SECURITIES LAWS OF ANY STATE, PROVINCE OR ANY OTHER
APPLICABLE SECURITIES LAWS AND ARE BEING SOLD IN RELIANCE UPON EXEMPTIONS FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS.  SUCH UNITS MUST BE ACQUIRED FOR INVESTMENT
ONLY AND MAY NOT BE OFFERED FOR SALE, PLEDGED, HYPOTHECATED, SOLD,
ASSIGNED OR TRANSFERRED AT ANY TIME EXCEPT IN COMPLIANCE WITH (I) THE
SECURITIES ACT, ANY APPLICABLE SECURITIES LAWS OF ANY STATE OR PROVINCE, AND
ANY OTHER APPLICABLE SECURITIES LAWS; AND (II) THE TERMS AND CONDITIONS OF
THIS AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT.  THE UNITS MAY NOT BE TRANSFERRED OF
RECORD EXCEPT IN COMPLIANCE WITH SUCH LAWS AND THIS LIMITED PARTNERSHIP
AGREEMENT.  THEREFORE, PURCHASERS AND
OTHER TRANSFEREES OF SUCH UNITS WILL BE REQUIRED TO BEAR THE RISK OF THEIR
INVESTMENT OR ACQUISITION FOR AN INDEFINITE PERIOD OF TIME.

 

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  
	
   

  
	
  DEFINITIONS

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  
	
  FORMATION, TERM, PURPOSE
  AND POWERS

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Formation

  	
  9

  
	
  SECTION 2.02.

  	
  Name

  	
  9

  
	
  SECTION 2.03.

  	
  Term

  	
  9

  
	
  SECTION 2.04.

  	
  Offices

  	
  9

  
	
  SECTION 2.05.

  	
  Registered
  Office

  	
  9

  
	
  SECTION 2.06.

  	
  Business
  Purpose

  	
  9

  
	
  SECTION 2.07.

  	
  Powers
  of the Partnership

  	
  10

  
	
  SECTION 2.08.

  	
  Partners;
  Admission of New and Substitute Limited Partners

  	
  10

  
	
  SECTION 2.09.

  	
  Withdrawal

  	
  10

  
	
  SECTION 2.10.

  	
  Initial
  Limited Partner

  	
  10

  
	
  SECTION 2.11.

  	
  Retiring
  General Partner

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  
	
  MANAGEMENT

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  General
  Partners

  	
  11

  
	
  SECTION 3.02.

  	
  Compensation

  	
  11

  
	
  SECTION 3.03.

  	
  Expenses

  	
  12

  
	
  SECTION 3.04.

  	
  Officers

  	
  12

  
	
  SECTION 3.05.

  	
  Authority
  of Partners

  	
  12

  
	
  SECTION 3.06.

  	
  Action
  by Written Consent or Ratification

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  
	
  DISTRIBUTIONS

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Distributions

  	
  13

  
	
  SECTION 4.02.

  	
  Liquidation
  Distribution

  	
  14

  
	
  SECTION 4.03.

  	
  Limitations
  on Distribution

  	
  14

  
	
  SECTION 4.04.

  	
  Designated Percentage

  	
  14

  

 

i

 

ARTICLE V

 

CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS;

TAX ALLOCATIONS; TAX MATTERS

 

	
  SECTION 5.01.

  	
  Initial
  Capital Contributions

  	
  14

  
	
  SECTION 5.02.

  	
  No
  Additional Capital Contributions

  	
  14

  
	
  SECTION 5.03.

  	
  Capital
  Accounts

  	
  14

  
	
  SECTION 5.04.

  	
  Allocations
  of Profits and Losses

  	
  15

  
	
  SECTION 5.05.

  	
  Special
  Allocations

  	
  15

  
	
  SECTION 5.06.

  	
  Tax
  Allocations

  	
  17

  
	
  SECTION 5.07.

  	
  Tax
  Advances

  	
  17

  
	
  SECTION 5.08.

  	
  Tax
  Matters

  	
  17

  
	
  SECTION 5.09.

  	
  Other
  Tax Provisions

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  
	
  BOOKS AND RECORDS; REPORTS

  
	
   

  
	
  SECTION 6.01.

  	
  Books
  and Records

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  
	
  PARTNERSHIP UNITS

  
	
   

  
	
  SECTION 7.01.

  	
  Units

  	
  19

  
	
  SECTION 7.02.

  	
  Register

  	
  19

  
	
  SECTION 7.03.

  	
  Registered
  Partners

  	
  19

  
	
  SECTION 7.04.

  	
  Exchange
  Transactions

  	
  19

  
	
  SECTION 7.05.

  	
  Transfers;
  Encumbrances

  	
  20

  
	
  SECTION 7.06.

  	
  Further
  Restrictions

  	
  20

  
	
  SECTION 7.07.

  	
  Rights
  of Assignees

  	
  21

  
	
  SECTION 7.08.

  	
  Admissions,
  Withdrawals and Removals

  	
  21

  
	
  SECTION 7.09.

  	
  Admission
  of Assignees as Substitute Limited Partners

  	
  21

  
	
  SECTION 7.10.

  	
  Withdrawal
  and Removal of Limited Partners

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  
	
  DISSOLUTION, LIQUIDATION
  AND TERMINATION

  
	
   

  
	
  SECTION 8.01.

  	
  No
  Dissolution

  	
  22

  
	
  SECTION 8.02.

  	
  Events
  Causing Dissolution

  	
  22

  
	
  SECTION 8.03.

  	
  Distribution
  upon Dissolution

  	
  23

  
	
  SECTION 8.04.

  	
  Time
  for Liquidation

  	
  23

  
	
  SECTION 8.05.

  	
  Termination

  	
  23

  
	
  SECTION 8.06.

  	
  Claims
  of the Partners

  	
  23

  
	
  SECTION 8.07.

  	
  Survival
  of Certain Provisions

  	
  24

  

 

ii

 

	
  ARTICLE IX

  
	
   

  
	
  LIABILITY AND
  INDEMNIFICATION

  
	
   

  
	
  SECTION 9.01.

  	
  Liability
  of Partners

  	
  24

  
	
  SECTION 9.02.

  	
  Indemnification

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  
	
   

  
	
  MISCELLANEOUS

  
	
   

  
	
  SECTION 10.01.

  	
  Severability

  	
  27

  
	
  SECTION 10.02.

  	
  Notices

  	
  27

  
	
  SECTION 10.03.

  	
  Cumulative
  Remedies

  	
  28

  
	
  SECTION 10.04.

  	
  Binding
  Effect

  	
  28

  
	
  SECTION 10.05.

  	
  Interpretation

  	
  28

  
	
  SECTION 10.06.

  	
  Counterparts

  	
  28

  
	
  SECTION 10.07.

  	
  Further
  Assurances

  	
  28

  
	
  SECTION 10.08.

  	
  Entire
  Agreement

  	
  29

  
	
  SECTION 10.09.

  	
  Governing
  Law

  	
  29

  
	
  SECTION 10.10.

  	
  Arbitration

  	
  29

  
	
  SECTION 10.11.

  	
  Expenses

  	
  30

  
	
  SECTION 10.12.

  	
  Amendments
  and Waivers

  	
  30

  
	
  SECTION 10.13.

  	
  No
  Third Party Beneficiaries

  	
  31

  
	
  SECTION 10.14.

  	
  Headings

  	
  31

  
	
  SECTION 10.15.

  	
  Construction

  	
  31

  
	
  SECTION 10.16.

  	
  Power
  of Attorney

  	
  31

  
	
  SECTION 10.17.

  	
  Schedules

  	
  32

  
	
  SECTION 10.18.

  	
  Partnership
  Status

  	
  32

  
	
  SECTION 10.19.

  	
  Effectiveness

  	
  32

  

 

iii

 

SECOND AMENDED AND RESTATED
LIMITED PARTNERSHIP AGREEMENT

 

OF

 

KKR FUND HOLDINGS L.P.

 

This
SECOND AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT (this “Agreement”)
of KKR Fund Holdings L.P. (the “Partnership”) is made this 1st day of October,
2009, by and among KKR Group Holdings L.P., an exempted limited partnership
formed under the laws of the Cayman Islands (“KKR Group Holdings L.P.”),
and KKR Fund Holdings GP Limited, an exempted limited company formed under the
laws of the Cayman Islands, as general partners, KKR & Co. L.P., a
Delaware limited partnership, as the retiring general partner (the “Retiring
General Partner”), William J. Janetschek, as withdrawing limited partner
(the “Initial Limited Partner”), together with any other Persons who
become Limited Partners (as defined herein) in the Partnership or parties
hereto as provided herein.

 

WHEREAS,
the Partnership was formed and registered as an exempted limited partnership
pursuant to the Act (as defined herein), by the filing of a statement with
respect to Section 9 of the Act (the “Statement”) with the
Registrar of Exempted Limited Partnerships in the Cayman Islands and the
execution of the Limited Partnership Agreement of the Partnership dated July 23,
2008 by and between KKR Fund Holdings GP Limited and the Retiring General
Partner, as general partners, and the Initial Limited Partner (the “Original
Agreement”); and

 

WHEREAS,
the Original Agreement was amended and restated on August 4, 2009 by and
among KKR Group Holdings L.P., KKR Fund Holdings GP Limited, the Retiring
General Partner, the Initial Limited Partner and the Limited Partners party
thereto (the “First Amended and Restated Limited Partnership Agreement”);
and

 

NOW,
THEREFORE, in consideration of the mutual promises and agreements herein made
and intending to be legally bound hereby, the parties hereto agree to amend and
restate the First Amended and Restated Limited Partnership Agreement in its
entirety to read as follows:

 

ARTICLE
I

 

DEFINITIONS

 

SECTION 1.01.                                         Definitions. 
Capitalized terms used herein without definition have the following
meanings (such meanings being equally applicable to both the singular and
plural form of the terms defined):

 

“Act” means the
Exempted Limited Partnership Law (2007 Revision) of the Cayman Islands, as it
may be amended from time to time.

 

“Additional Credit Amount”
has the meaning set forth in Section 4.01(b)(ii).

 

“Adjusted Capital Account Balance”
means, with respect to each Partner, the balance in such Partner’s Capital
Account adjusted (i) by taking into account the adjustments, allocations
and distributions described in Treasury Regulations Sections

 

1

 

1.704-1(b)(2)(ii)(c)(4),
(5) and (6); and (ii) by adding to such balance such Partner’s share
of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain,
determined pursuant to Treasury Regulations Sections 1.704-2(g) and
1.704-2(i)(5), and any amounts such Partner is obligated to restore pursuant to
any provision of this Agreement or by applicable Law or is deemed to be
obligated to restore under applicable Treasury Regulations. The foregoing
definition of Adjusted Capital Account Balance is intended to comply with the
provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and
shall be interpreted consistently therewith.

 

“Affiliate” means, with respect to a
specified Person, any other Person that directly, or indirectly through one or
more intermediaries, Controls, is Controlled by, or is under common Control
with, such specified Person.

 

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

 

“Amended Tax Amount”
has the meaning set forth in Section 4.01(b)(ii).

 

“Assignee” has the
meaning set forth in Section 7.07.

 

“Assumed Tax Rate”
means the highest effective marginal combined U.S. federal, state and local
income tax rate for a Fiscal Year prescribed for an individual or corporate
resident in New York, New York (taking into account (a) the
nondeductiblity of expenses subject to the limitation described in Section 67(a) of
the Code and (b) the character (e.g., long-term or short-term capital gain
or ordinary or exempt income) of the applicable income, but not taking into
account the deductibility of state and local income taxes for U.S. federal
income tax purposes). For the avoidance of doubt, the Assumed Tax Rate will be
the same for all Partners.

 

“Available Cash”
means, with respect to any fiscal
period, the amount of cash on hand that a General Partner, in its reasonable discretion, deems available for distribution
to the Partners, taking into account all debts, liabilities and obligations of
the Partnership then due and amounts that a General Partner, in its reasonable discretion, deems necessary to expend or
retain for working capital or to place into reserves for customary and usual
claims with respect to the Partnership’s operations.

 

“Capital Account”
means the separate capital account maintained for each Partner in accordance
with Section 5.03.

 

“Capital Contribution”
means, with respect to any Partner, the aggregate amount of money contributed
to the Partnership and the Carrying Value of any property (other than money),
net of any liabilities assumed by the Partnership upon contribution or to which
such property is subject, contributed to the Partnership pursuant to Article V.

 

“Carrying Value”
means, with respect to any Partnership asset, the asset’s adjusted basis for
U.S. federal income tax purposes, except that the initial carrying value of
assets contributed to the Partnership shall be their respective gross fair
market values on the date of contribution as determined by a General Partner,
and the Carrying Values of all Partnership assets may be adjusted to equal
their respective fair market values, in 

 

2

 

accordance with the rules set
forth in Treasury Regulation Section 1.704-1(b)(2)(iv)(f), except as
otherwise provided herein, as of: (a) the date of the acquisition of any
additional Units by any new or existing Partner in exchange for more than a de
minimis Capital Contribution; (b) the date of the distribution of more
than a de minimis amount of Partnership assets to a Partner; (c) the date
a Unit is relinquished to the Partnership; or (d) any other date specified
in the Treasury Regulations; provided,
however, that adjustments pursuant to clauses (a), (b), (c) and (d) above
shall be made only if such adjustments are deemed necessary or appropriate by a
General Partner to reflect the relative economic interests of the Partners. The
Carrying Value of any Partnership asset distributed to any Partner shall be
adjusted immediately before such distribution to equal its fair market value.
In the case of any asset that has a Carrying Value that differs from its
adjusted tax basis, Carrying Value shall be adjusted by the amount of
depreciation calculated for purposes of the definition of “Profits (Losses)”
rather than the amount of depreciation determined for U.S. federal income tax
purposes, and depreciation shall be calculated by reference to Carrying Value
rather than tax basis once Carrying Value differs from tax basis.

 

“Class” means the
classes of Units into which the interests in the Partnership may be classified
or divided from time to time pursuant to the provisions of this Agreement.

 

“Class A Percentage
Interest” means, with respect to any Partner, the quotient obtained by
dividing the number of Class A Units then owned by such Partner by the
number of Class A Units then owned by all Partners.

 

“Class A Tax Amount”
means the General Partner’s estimate of the Net Taxable Income
in accordance with Article V allocable to holders of Class A Units,
multiplied by the Assumed Tax Rate.

 

“Class A Tax
Distribution” has the meaning set forth in Section 4.01(b)(i).

 

“Class A Units”
means the Units of partnership interest in the Partnership designated as the “Class A
Units” herein and having the rights pertaining thereto as are set forth in this
Agreement.

 

“Class B Percentage
Interest” means, with respect to any Partner, the quotient obtained by
dividing the number of Class B Units then owned by such Partner by the
number of Class B Units then owned by all Partners.

 

“Class B Tax Amount”
means the General Partner’s estimate of the Net Taxable Income
in accordance with Article V allocable to holders of Class B Units, multiplied
by the Assumed Tax Rate.

 

“Class B Tax
Distribution” has the meaning set forth in Section 4.01(b)(i).

 

“Class B Units”
means the Units of partnership interest in the Partnership designated as “Class B
Units” herein and having the rights pertaining thereto as are set forth in this
Agreement.

 

3

 

“Code” means the U.S.
Internal Revenue Code of 1986, as amended from time to time.

 

“Common Units” means (i) prior
to the US Listing, common units representing limited partner interests of the
Issuer and (ii) on and after the US Listing, common units representing
limited partner interests of KKR & Co. L.P., a Delaware limited
partnership.

 

“Contingencies” has
the meaning set forth in Section 8.03(a).

 

“Contribution and
Indemnification Agreement” means the contribution and indemnification
agreement dated October 1, 2009 among the Group Partnerships, KKR
Associates Holdings L.P. and KKR Intermediate Partnership L.P.

 

“Control” (including
the terms “Controlled by” and “under common Control with”) means
the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, as trustee or executor, by contract or
otherwise, including, without limitation, the ownership, directly or
indirectly, of securities having the power to elect a majority of the board of
directors or similar body governing the affairs of such Person.

 

“Credit Amount” has
the meaning set forth in Section 4.01(b)(ii).

 

“Creditable Non-U.S. Tax”
means a non-U.S. tax paid or accrued for U.S. federal income tax purposes by
the Partnership, in either case to the extent that such tax is eligible for
credit under Section 901(a) of the Code.  A non-U.S. tax is a Creditable Non-U.S. Tax
for these purposes without regard to whether a Partner receiving an allocation
of such non-U.S. tax elects to claim a credit for such amount.  This definition is intended to be consistent
with the definition of “creditable foreign tax expenditures” in Treasury
Regulations Section 1.704-1(b)(4)(viii)(b), and shall be interpreted
consistently therewith.

 

“Designated Percentage”
has the meaning set forth in Section 4.04.

 

“Dissolution Event”
has the meaning set forth in Section 8.02.

 

“Effective Time” shall
have the meaning set forth in the Purchase and Sale Agreement.

 

“Encumbrance” means
any mortgage, claim, lien, encumbrance, conditional sales or other title
retention agreement, right of first refusal, preemptive right, pledge, option,
charge, security interest or other similar interest, easement, judgment or
imperfection of title of any nature whatsoever.

 

“ERISA” means the U.S.
Employee Retirement Income Security Act of 1974, as amended.

 

“Exchange Act” means
the U.S. Securities Exchange Act of 1934, as amended, including the rules and
regulations promulgated thereunder.

 

4

 

“Exchange Agreement”
means the exchange agreement dated as of or about the date hereof among the Issuer,
KKR Holdings L.P., KKR Group Holdings L.P., the Partnership and KKR Management
Holdings, as amended from time to time, or such other exchange agreement
entered into from time to time by KKR & Co. L.P., a Delaware limited
partnership, and the Partnership.

 

“Existing Carried
Interests” means profits interests (or similar incentive allocations) owned
directly or indirectly by the Partnership in investments made on or prior to December 31,
2009.

 

“Final Tax Amount” has
the meaning set forth in Section 4.01(b)(ii).

 

“First Amended and
Restated Limited Partnership Agreement” has the meaning set forth in the
preamble of this Agreement.

 

“Fiscal Year” means (i) the
period commencing upon the Effective Time and ending on December 31, 2009
or (ii) any subsequent twelve-month period commencing on January 1
and ending on December 31.

 

“Fund” has the meaning
set forth in Section 9.02(a).

 

“Future Carried Interests”
means profits interests (or similar incentive allocations) owned directly or
indirectly by the Partnership in investments made after December 31, 2009.

 

“GAAP” means
accounting principles generally accepted in the United States of America as in
effect from time to time.

 

“General Partners”
means, collectively,  KKR Group
Holdings L.P., an exempted limited partnership formed under the laws of the
Cayman Islands, and KKR Fund Holdings GP Limited, an exempted limited company
formed under the laws of the Cayman Islands, or any successor general partner(s) admitted
to the Partnership in accordance with the terms of this Agreement.

 

“Group Partnerships”  means,
collectively,  the Partnership and KKR
Management Holdings (and any future partnership designated as a Group
Partnership by KKR Group Holdings L.P. (it being understood that such
designation may only be made if such future partnership enters into a group
partnership agreement substantially the same as, and which provides for
substantially the same obligations as, the group partnership agreements then in
existence)), and any successors thereto.

 

“Incapacity” means, with respect to any Person, the bankruptcy, dissolution,
termination, entry of an order of incompetence, or the insanity, permanent
disability or death of such Person.

 

“Initial Limited Partner”
means William J. Janetschek.

 

5

 

“Investment Agreement”
means the investment agreement among the Issuer, the Partnership and the
other parties thereto, as amended from time to time.

 

“Issuer” means KKR
Private Equity Investors, L.P., a Guernsey limited partnership, or any
successor thereto.

 

“KKR Group Holdings L.P.”
has the meaning set forth in the preamble to this Agreement.

 

“KKR Intermediate
Partnership” means KKR Intermediate Partnership L.P., a Cayman Islands
exempted limited partnership, or any successor thereto.

 

“KKR Management Holdings”
means KKR Management Holdings L.P., a Delaware limited partnership, or any
successor thereto.

 

“KPE Transaction” means, collectively, the transactions
contemplated in the Purchase and Sale Agreement.

 

“Law” means any
statute, law, ordinance, regulation, rule, code, executive order, injunction,
judgment, decree or other order issued or promulgated by any national,
supranational, state, federal, provincial, local or municipal government or any
administrative or regulatory body with authority therefrom with jurisdiction
over the Partnership or any Partner, as the case may be, or principles in
equity.

 

“Limited Partner”
means each of the Persons from time to time listed as a limited partner in the
books and records of the Partnership.

 

“Liquidation Agent”
has the meaning set forth in Section 8.03.

 

“Net Taxable Income”
has the meaning set forth in Section 4.01(b)(i).

 

“Nonrecourse Deductions”
has the meaning set forth in Treasury Regulations Section 1.704-2(b).  The amount of Nonrecourse Deductions of the
Partnership for a fiscal year equals the net increase, if any, in the amount of
Partnership Minimum Gain of the Partnership during that fiscal year, determined
according to the provisions of Treasury Regulations Section 1.704-2(c).

 

“Other Company” has
the meaning set forth in Section 9.02(a).

 

“Original Agreement”
has the meaning set forth in the recitals of this Agreement.

 

“Partner Nonrecourse Debt
Minimum Gain” means an amount with respect to each partner nonrecourse debt
(as defined in Treasury Regulations Section 1.704-2(b)(4)) equal to the
Partnership Minimum Gain that would result if such partner nonrecourse debt
were treated as a nonrecourse liability (as defined in Treasury Regulations Section 1.752-1(a)(2))
determined in accordance with Treasury Regulations Section 1.704-2(i)(3).

 

6

 

“Partner Nonrecourse
Deductions” has the meaning ascribed to the term “partner nonrecourse
deductions” set forth in Treasury Regulations Section 1.704-2(i)(2).

 

“Partners” means, at
any time, each person listed as a Partner (including the General Partners) on
the books and records of the Partnership, in each case for so long as he, she
or it remains a partner of the Partnership as provided hereunder.

 

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

 

“Partnership Minimum Gain” has the meaning set forth in Treasury
Regulations Sections 1.704-2(b)(2) and 1.704-2(d).

 

“Person” or “person”
means any individual, corporation, partnership, limited partnership, limited
liability company, limited company, joint venture, trust, entity,
unincorporated or governmental organization or any agency or political
subdivision thereof.

 

“Profits” and “Losses” means, for each Fiscal Year or
other period, the taxable income or loss of the Partnership, or particular
items thereof, determined in accordance with the accounting method used by the
Partnership for U.S. federal income tax purposes with the following
adjustments: (a) all items of income, gain, loss or deduction allocated
pursuant to Section 5.05 shall not be taken into account in computing such
taxable income or loss but shall be computed in accordance with the principles
of this definition; (b) any income of the Partnership that is exempt from
U.S. federal income taxation and not otherwise taken into account in computing
Profits and Losses shall be added to such taxable income or loss; (c) if
the Carrying Value of any asset differs from its adjusted tax basis for U.S.
federal income tax purposes, any gain or loss resulting from a disposition of
such asset shall be calculated with reference to such Carrying Value; (d) upon
an adjustment to the Carrying Value (other than an adjustment in respect of
depreciation) of any asset, pursuant to the definition of Carrying Value, the
amount of the adjustment shall be included as gain or loss in computing such
taxable income or loss; (e) if the Carrying Value of any asset differs
from its adjusted tax basis for U.S. federal income tax purposes, the amount of
depreciation, amortization or cost recovery deductions with respect to such
asset for purposes of determining Profits and Losses, if any, shall be an
amount which bears the same ratio to such Carrying Value as the U.S. federal
income tax depreciation, amortization or other cost recovery deductions bears
to such adjusted tax basis (provided that if the U.S. federal income tax
depreciation, amortization or other cost recovery deduction is zero, the
General Partners may use any reasonable method for purposes of determining
depreciation, amortization or other cost recovery deductions in calculating
Profits and Losses); and (f) except for items in (a) above, any
expenditures of the Partnership not deductible in computing taxable income or
loss, not properly capitalizable and not otherwise taken into account in
computing Profits and Losses pursuant to this definition shall be treated as
deductible items.  For the avoidance of
doubt, Profits and Losses exclude any items of income, gain, loss or deduction
in respect of Existing Carried Interests or Future Carried Interests allocable
to the Class B Units.

 

7

 

“Purchase and Sale Agreement” means the amended and restated purchase and
sale agreement among the Partnership, the Issuer and the other parties thereto,
dated July 19, 2009.

 

“Restructuring
Transactions” has the meaning set forth in the Purchase and Sale Agreement.

 

“Retiring General Partner”
has the meaning set forth in the preamble of this Agreement.

 

“Securities Act” means
the U.S. Securities Act of 1933, as amended, including the rules and
regulations promulgated thereunder.

 

“Similar Law” means
any law or regulation that could cause the underlying assets of the Partnership
to be treated as assets of the Limited Partner by virtue of its limited partner
interest in the Partnership and thereby subject the Partnership and the General
Partners (or other persons responsible for the investment and operation of the
Partnership’s assets) to Laws that are similar to the fiduciary responsibility
or prohibited transaction provisions contained in Title I of ERISA or Section 4975
of the Code.

 

“Special Allocations”
means any allocations to Partners pursuant to Section 5.05.

 

“Statement” has the
meaning set forth in the recitals of this Agreement.

 

“Tax Advances” has the
meaning set forth in Section 5.07.

 

“Tax Amount” means,
collectively, Class A Tax Amount and Class B Tax Amount.

 

“Tax Distributions”
means, collectively, Class A Tax Distributions and Class B Tax
Distributions.

 

“Tax Matters Partner”
has the meaning set forth in Section 5.08.

 

“Transfer” means, in
respect of any Unit, property or other asset, any sale, assignment, transfer,
distribution or other disposition thereof, whether voluntarily or by operation
of Law, including, without limitation, the exchange of any Unit for any other
security.

 

“Transferee” means any
Person that is a transferee of a Partner’s interest in the Partnership, or part
thereof.

 

“Treasury Regulations”
means the income tax regulations, including temporary regulations, promulgated
under the Code, as such regulations may be amended from time to time (including
corresponding provisions of succeeding regulations).

 

“Units” means the Class A
Units, Class B Units and any other Class of Units authorized in
accordance with this Agreement, which shall constitute interests in the
Partnership as provided in this Agreement and under the Act, entitling the
holders thereof to 

 

8

 

the relative rights, title and
interests in the profits, losses, deductions and credits of the Partnership at
any particular time as set forth in this Agreement, and any and all other
benefits to which a holder thereof may be entitled as a Partner as provided in
this Agreement, together with the obligations of such Partner to comply with
all terms and provisions of this Agreement.

 

“US Listing” shall
have the meaning set forth in the Investment Agreement.

 

ARTICLE
II

 

FORMATION,
TERM, PURPOSE AND POWERS

 

SECTION 2.01.                                         Formation.  The Partnership
was formed and registered as an exempted limited partnership under the
provisions of the Act by the filing on July 23, 2008 of the Statement as
provided in the preamble of this Agreement and the execution of the Original
Agreement. If requested by a General Partner, the Limited Partners shall
promptly execute all certificates and other documents consistent with the terms
of this Agreement necessary for a General Partner to accomplish all filing,
recording, publishing and other acts as may be appropriate to comply with all
requirements for (a) the formation and operation of an exempted limited
partnership under the laws of the Cayman Islands, (b) if a General Partner
deems it advisable, the operation of the Partnership as a limited partnership,
or partnership in which the Limited Partners have limited liability, in all
jurisdictions where the Partnership proposes to operate and (c) all other
filings required to be made by the Partnership.

 

SECTION 2.02.                                         Name. The name of the Partnership shall be, and the
business of the Partnership shall be conducted under the name of, KKR Fund
Holdings L.P.

 

SECTION 2.03.                                         Term. The term of the Partnership commenced on the
execution of the Original Agreement, and the term shall continue until the
dissolution of the Partnership in accordance with Article VIII. The
existence of the Partnership shall continue until a notice of dissolution
signed by a General Partner has been filed with the Cayman Islands Registrar of
Exempted Limited Partnerships.

 

SECTION 2.04.                                         Offices.  The
Partnership may have offices at such places either within or outside the Cayman
Islands as a General Partner from time to time may select.

 

SECTION 2.05.                                         Registered Office. To the extent required by the Act, the
Partnership will continuously maintain a registered office at the offices of
Maples Corporate Services Limited, Ugland House, PO Box 309, George Town, Grand
Cayman KY1-1104, Cayman Islands or at such other place within the Cayman
Islands as a General Partner from time to time may select.

 

SECTION 2.06.                                         Business Purpose. The Partnership was formed for the
object and purpose of, and the nature and character of the business to be
conducted by the Partnership is, 

 

9

 

engaging in any lawful
act or activity to be carried out and undertaken either in or from within the
Cayman Islands or elsewhere, including holding limited and general partner
interests in other limited partnerships, upon the terms, with the rights and
powers, and subject to the conditions, limitations, restrictions and
liabilities set forth herein.

 

SECTION 2.07.                                         Powers of the Partnership. Subject to the limitations set forth in
this Agreement, the Partnership will possess and may exercise all of the powers
and privileges granted to it by the Act including, without limitation, the
ownership and operation of the assets contributed to the Partnership by the
Partners, by any other Law or this Agreement, together with all powers
incidental thereto, so far as such powers are necessary or convenient to the
conduct, promotion or attainment of the purpose of the Partnership set forth in
Section 2.06.

 

SECTION 2.08.                                         Partners; Admission of New and Substitute
Limited Partners.  Each of the Persons listed as Partners in the
books and records of the Partnership, as the same may be amended from time to
time in accordance with this Agreement, by virtue of the execution of this
Agreement, are admitted as Partners of the Partnership. The rights, duties and
liabilities of the Partners shall be as provided in the Act, except as is
otherwise expressly provided herein, and the Partners consent to the variation
of such rights, duties and liabilities as provided herein. A Person may be
admitted from time to time as a new Limited Partner with the approval of the General
Partners, as a substitute Limited Partner in accordance with Section 7.09
or as an additional General Partner or substitute General Partner in accordance
with Section 7.08; provided, however, that (i) each new and
substitute Limited Partner shall execute and deliver to the General Partners a
supplement to this Agreement in the form of Annex A hereto (or in such other
form as the General Partners may reasonably require) and (ii) each
additional General Partner or substitute General Partner, as the case may be,
shall execute and deliver to the General Partners an appropriate supplement to
this Agreement, in each case pursuant to which the new Partner agrees to be
bound by the terms and conditions of the Agreement, as it may be amended from
time to time.

 

SECTION 2.09.                                         Withdrawal.  Except as
provided in Section 2.10 and Section 2.11, no Partner shall have the
right to withdraw as a Partner of the Partnership other than following the
Transfer of all Units owned by such Partner in accordance with Article VII.

 

SECTION 2.10.                                         Initial Limited Partner. 
The execution of this Agreement by the Initial Limited Partner
constitutes his withdrawal as a limited partner of the Partnership with the
consent of the General Partners as of the Effective Time.  Because of such withdrawal, the Initial
Limited Partner has no further right, interest or obligation of any kind
whatsoever as a limited partner of the Partnership, effective immediately after
the Effective Time.  Any capital contribution
of the Initial Limited Partner will be returned to him at the Effective Time.

 

SECTION 2.11.                                         Retiring General Partner.  The execution of this Agreement by the
Retiring General Partner constitutes its retirement as a general partner of the
Partnership with the consent of the Partners and the admission of KKR Group
Holdings L.P. as a general partner of the Partnership with the consent of the
Partners, in each case, as of the Effective Time. As of the Effective Time, the
Retiring General Partner hereby assigns its full right, title and interest in
and to all of the assets of the Partnership, present or future, with the intent
that all and any property and assets, from time to time held for the purposes
of Partnership including but not restricted to the proceeds of issue of
Partnership interests, in the General Partners and is discharged and released 

 

10

 

from
any and all of its obligations arising pursuant to the Original Agreement.  As of the Effective Time, the Retiring
General Partner hereby agrees to deliver to the General Partners any documents,
records or other information in the actual possession or knowledge of the
Retiring General Partner, as may be reasonably required by the General
Partners, relating to the Partnership or to any services provided by the
Retiring General Partner to the Partnership. Any capital contribution of the
Retiring General Partner will be returned to it at the Effective Time.

 

ARTICLE
III

 

MANAGEMENT

 

SECTION 3.01.                                         General Partners. (a)  The business, property and
affairs of the Partnership shall be managed under the sole, absolute and
exclusive direction of the General Partners, which may from time to time
delegate authority to officers or to others to act on behalf of the
Partnership.

 

(a) Without limiting the foregoing
provisions of this Section 3.01, each General Partner shall have the
general power to manage or cause the management of the Partnership (which may
be delegated to officers of the Partnership), including, without limitation,
the following powers:

 

(i)                                                             to develop and
prepare a business plan each year which will set forth the operating goals and
plans for the Partnership;

 

(ii)                                                          to execute and
deliver or to authorize the execution and delivery of contracts, deeds, leases,
licenses, instruments of transfer and other documents on behalf of the
Partnership;

 

(iii)                                                       the making of
any expenditures, the lending or borrowing of money, the assumption or
guarantee of, or other contracting for, indebtedness and other liabilities, the
issuance of evidences of indebtedness and the incurring of any other
obligations;

 

(iv)                                                      to employ,
retain, consult with and dismiss personnel;

 

(v)                                                         to establish
and enforce limits of authority and internal controls with respect to all
personnel and functions;

 

(vi)                                                      to engage
attorneys, consultants and accountants for the Partnership;

 

(vii)                                                   to develop or
cause to be developed accounting procedures for the maintenance of the
Partnership’s books of account; and

 

(viii)                                                to do all such
other acts as shall be authorized in this Agreement or by the Partners in
writing from time to time.

 

SECTION 3.02.                                         Compensation. 
The General Partners shall not be entitled to any compensation for
services rendered to the Partnership in their capacity as General Partners.

 

11

 

SECTION 3.03.                                         Expenses.      The Partnership
shall bear and reimburse the General Partners for any expenses incurred by the
General Partners in connection with serving as the general partners of the
Partnership.

 

SECTION 3.04.                                         Officers.  Subject to
the direction and oversight of the General Partners, the day-to-day
administration of the business of the Partnership may be carried out by natural
persons who may be designated as officers by a General Partner, with titles
including but not limited to “Chief Executive Officer” or “Co-Chief Executive
Officer,” “Chief Operating Officer,” “Chief Financial Officer,” “General
Counsel,” “Chief Administrative Officer,” “Chief Compliance Officer,” “Principal
Accounting Officer,” “President,” “Vice President,” “Treasurer,” “Assistant
Treasurer,” “Secretary,” “Assistant Secretary,” “General Manager,” “Senior
Managing Director,” “Managing Director,” “Director” and “Principal” as and to
the extent authorized by a General Partner. 
The officers of the Partnership shall have such titles and powers and
perform such duties as shall be determined from time to time by a General
Partner and otherwise as shall customarily pertain to such offices.  Any number of offices may be held by the same
person.  All officers shall be subject to
the supervision and direction of the General Partners and may be removed from
such office by a General Partner and the authority, duties or responsibilities
of any officer of the Partnership may be suspended by a General Partner from
time to time, in each case in the sole discretion of a General Partner.  Neither General Partner shall cease to be a
general partner of the Partnership as a result of the delegation of any duties
hereunder.  No officer of the
Partnership, in its capacity as such, shall be considered a general partner of
the Partnership by agreement, estoppel, as a result of the performance of its
duties hereunder or otherwise.

 

SECTION 3.05.                                         Authority of Partners. 
No Limited Partner, in its capacity as such, shall participate in the
conduct of the business of the Partnership or have any control over the
business of the Partnership. Except as expressly provided herein, the Units do
not confer any rights upon the Limited Partners to participate in the affairs
of the Partnership described in this Agreement. Except as expressly provided
herein, the Limited Partners shall have no right to vote on any matter
involving the Partnership, including with respect to any merger, consolidation,
combination or conversion of the Partnership. The conduct, control and
management of the Partnership shall be vested exclusively in the General
Partners. In all matters relating to or arising out of the conduct of the
operation of the Partnership, the decision of a General Partner shall be the
decision of the Partnership. Except as required or permitted by Law, or
expressly provided in the ultimate sentence of this Section 3.05 or by
separate agreement with the Partnership, no Partner who is not also a General
Partner (and acting in such capacity) shall take any part in the management,
conduct or control of the operation or business of the Partnership in its
capacity as a Partner, nor shall any Partner who is not also a General Partner
(and acting in such capacity) have any right, authority or power to act for or
on behalf of or bind the Partnership in his or its capacity as a Partner in any
respect or assume any obligation or responsibility of the Partnership or of any
other Partner. Notwithstanding the foregoing, the Partnership may employ one or
more Partners from time to time, and such Partners, in their capacity as
employees, officers or agents of the Partnership (and not, for clarity, in
their capacity as Limited Partners of the Partnership), may take part in the
control, conduct and management of the business of the Partnership to the
extent such authority and power to act for or on behalf of the Partnership has
been delegated to them by a General Partner.

 

12

 

SECTION 3.06.                                         Action by Written Consent or Ratification. 
Any action required or permitted to be taken by the Partners pursuant to
this Agreement shall be taken if all Partners whose consent or ratification is
required consent thereto or provide a ratification in writing.

 

ARTICLE
IV

 

DISTRIBUTIONS

 

SECTION 4.01.                                         Distributions.  (a) A
General Partner, in its sole discretion, may authorize distributions by the
Partnership to the Partners.  The
Designated Percentage of any distribution that is attributable to Existing
Carried Interests or Future Carried Interests shall be made to holders of Class B
Units and the remaining amount of any such distribution shall be made to
holders of Class A Units, in each case pro rata in
accordance with such Partners’ respective Class B Percentage Interest and Class A
Percentage Interest.  All other
distributions not attributable to Existing Carried Interests or Future Carried
Interests shall be made solely to the holders of Class A Units pro rata in accordance with such Partners’ respective Class A
Percentage Interests.

 

(b)(i)                      If a General Partner reasonably determines that the
Partnership has taxable income for a Fiscal Year (“Net Taxable Income”)
allocable to holders of Class A Units, such General Partner shall cause
the Partnership to distribute Available Cash attributable to Class A
Units, to the extent that other distributions made by the Partnership to
holders of Class A Units for such year were otherwise insufficient, in an
amount equal to the Class A Tax Amount (the “Class A Tax
Distributions”).  If a General
Partner reasonably determines that the Partnership has Net Taxable Income
allocable to holders of Class B Units, such General Partner shall cause
the Partnership to distribute Available Cash attributable to Class B
Units, to the extent that other distributions made by the Partnership to
holders of Class B Units for such year were otherwise insufficient, in an
amount equal to the Class B Tax Amount (the “Class B Tax
Distributions”).  For purposes of computing the Tax Amount, the effect of any adjustment
under Section 743(b) of the Code arising after the Restructuring
Transactions will be ignored. Class A Tax Distributions and Class B
Tax Distributions shall be made pro rata to
holders of Class A Units or Class B Units in accordance with their Class A
Percentage Interest or Class B Percentage Interest, as applicable.  Any Tax Distributions shall be treated in all respects as
offsets against future distributions pursuant to Section 4.01(a).

 

(ii) Tax Distributions
shall be calculated and paid no later than one day prior to each quarterly due
date for the payment by corporations on a calendar year of estimated taxes
under the Code in the following manner (A) for the first quarterly period,
25% of the Tax Amount, (B) for the second quarterly period, 50% of the Tax
Amount, less the prior Tax Distributions for the Fiscal Year, (C) for the
third quarterly period, 75% of the Tax Amount, less the prior Tax Distributions
for the Fiscal Year and (D) for the fourth quarterly period, 100% of the
Tax Amount, less the prior Tax Distributions for the Fiscal Year. Following
each Fiscal Year, and no later than one day prior to the due date for the
payment by corporations of income taxes for such Fiscal Year, a General Partner
shall make an amended calculation of the Tax Amount for such Fiscal Year (the “Amended
Tax Amount”), and shall cause the Partnership to distribute a Tax
Distribution, out of Available Cash, to the extent that the Amended Tax
Amount so calculated exceeds the cumulative Tax Distributions previously made
by the Partnership in respect of such Fiscal Year. If the Amended 

 

13

 

Tax Amount is less than the cumulative Tax Distributions previously
made by the Partnership in respect of the relevant Fiscal Year, then the
difference (the “Credit Amount”) shall be applied against, and shall
reduce, the amount of Tax Distributions made for subsequent Fiscal Years.   Within 30 days following the date on which
the Partnership files a U.S. tax return on Form 1065, a General Partner
shall make a final calculation of the Tax Amount of such Fiscal Year (the “Final
Tax Amount”) and shall cause the Partnership to distribute a Tax
Distribution, out of Available Cash, to the extent that the Final Tax
Amount so calculated exceeds the Amended Tax Amount. If the Final Tax Amount is
less than the Amended Tax Amount in respect of the relevant Fiscal Year, then
the difference (“Additional Credit Amount”) shall be applied against,
and shall reduce, the amount of Tax Distributions made for subsequent Fiscal
Years.  Any Credit Amount and Additional
Credit Amount applied against future Tax Distributions shall be treated as an
amount actually distributed pursuant to this Section 4.01(b) for
purposes of the computations herein.

 

SECTION 4.02.                                         Liquidation Distribution.  Distributions made upon dissolution of the
Partnership shall be made as provided in Section 8.03.

 

SECTION 4.03.                                         Limitations on Distribution. 
Notwithstanding any provision to the contrary contained in this
Agreement, neither General Partner shall make a Partnership distribution to any
Partner if such distribution would violate Section 14 of the Act or other
applicable Law.

 

SECTION 4.04.                                         Designated Percentage. 
The “Designated Percentage” means (i) with respect to Existing
Carried Interests, 40%, and (ii) with respect to each Future Carried
Interest, 40% or such percentage as designated from time to time by a General
Partner.  Such Designated Percentage
shall apply to any Future Carried Interests with respect to investments made
until such time as a new Designated Percentage is designated by the General
Partner.  For the avoidance of doubt, the
Designated Percentage shall apply to a Future Carried Interest regardless of
when the underlying investment is realized.

 

ARTICLE
V

 

CAPITAL
CONTRIBUTIONS; CAPITAL ACCOUNTS;

TAX ALLOCATIONS; TAX MATTERS

 

SECTION 5.01.                                         Initial Capital Contributions. 
The Partners have made, on or prior to the Effective Time, Capital
Contributions and, in exchange, the Partnership has issued to the Partners the
number of Class A Units and Class B Units as specified in the books
and records of the Partnership.

 

SECTION 5.02.                                         No Additional Capital Contributions. 
Except as otherwise provided in this Article V, no Partner shall be
required to make additional Capital Contributions to the Partnership without
the consent of such Partner or permitted to make additional capital
contributions to the Partnership without the consent of a General Partner.

 

SECTION 5.03.                                         Capital Accounts. 
A separate capital account (a “Capital Account”) shall be established
and maintained for each Partner in accordance with the provisions of Treasury
Regulations Section 1.704-1(b)(2)(iv). 
To the extent consistent with such Treasury 

 

14

 

Regulations, the Capital
Account of each Partner shall be credited with such Partner’s Capital
Contributions, if any, all Profits allocated to such Partner pursuant to Section 5.04
and any items of income or gain which are specially allocated pursuant to Section 5.05;
and shall be debited with all Losses allocated to such Partner pursuant to Section 5.04,
any items of loss or deduction of the Partnership specially allocated to such
Partner pursuant to Section 5.05, and all cash and the Carrying Value of
any property (net of liabilities assumed by such Partner and the liabilities to
which such property is subject) distributed by the Partnership to such
Partner.  Any references in any section
of this Agreement to the Capital Account of a Partner shall be deemed to refer
to such Capital Account as the same may be credited or debited from time to
time as set forth above.  In the event of
any transfer of any interest in the Partnership in accordance with the terms of
this Agreement, the Transferee shall succeed to the Capital Account of the transferor
to the extent it relates to the transferred interest.

 

SECTION 5.04.                                         Allocations of Profits and Losses. 
Except as otherwise provided in this Agreement, Profits and Losses (and,
to the extent necessary, individual items of income, gain or loss or deduction
of the Partnership) shall be allocated to holders of Class A Units in a
manner such that the Capital Account of each Partner after giving effect to the
Special Allocations set forth in Section 5.05 is, as nearly as possible,
equal (proportionately) to (i) the distributions that would be made to
holders of Class A Units pursuant to Article IV if the Partnership
were dissolved, its affairs wound up and its assets sold for cash equal to
their Carrying Value, all Partnership liabilities were satisfied (limited with
respect to each non-recourse liability to the Carrying Value of the assets
securing such liability) and the net assets of the Partnership were distributed
to the Partners pursuant to this Agreement, minus (ii) such Partner’s
share of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain,
computed immediately prior to the hypothetical sale of assets. Notwithstanding
the foregoing, a General Partner shall make such adjustments to Capital
Accounts as it determines in its sole discretion to be appropriate to ensure
allocations are made in accordance with a Partner’s interest in the
Partnership.  For the avoidance of doubt,
and in light of Section 5.05(a), no Profits or Losses will be allocated in
respect of Class B Units or distributions attributable thereto.

 

SECTION 5.05.                                         Special Allocations. 
Notwithstanding any other provision in this Article V:

 

(a) Class B
Allocation.  The Designated
Percentage of items of income, gain, loss or deduction attributable to an
Existing Carried Interest or Future Carried Interests shall be allocated to the
holders of Class B Units, pro rata, in
accordance with their Class B Percentage Interest.

 

(b) Minimum Gain
Chargeback.  If there is a net
decrease in Partnership Minimum Gain or Partner Nonrecourse Debt Minimum Gain
(determined in accordance with the principles of Treasury Regulations Sections
1.704-2(d) and 1.704-2(i)) during any Partnership taxable year, the
Partners shall be specially allocated items of Partnership income and gain for
such year (and, if necessary, subsequent years) in an amount equal to their
respective shares of such net decrease during such year, determined pursuant to
Treasury Regulations Sections 1.704-2(g) and 1.704-2(i)(5).  The items to be so allocated shall be
determined in accordance with Treasury Regulations Section 1.704-2(f).  This Section 5.05(a) is intended to
comply with the minimum gain chargeback requirements in such Treasury
Regulations Sections and shall be interpreted consistently therewith; 

 

15

 

including that no chargeback
shall be required to the extent of the exceptions provided in Treasury
Regulations Sections 1.704-2(f) and 1.704-2(i)(4).

 

(c) Qualified Income
Offset.  If any Partner unexpectedly
receives any adjustments, allocations, or distributions described in Treasury
Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6), items of
Partnership income and gain shall be specially allocated to such Partner in an
amount and manner sufficient to eliminate the deficit balance in such Partner’s
Adjusted Capital Account Balance created by such adjustments, allocations or
distributions as promptly as possible;  provided that
an allocation pursuant to this Section 5.05(b) shall be made only to
the extent that a Partner would have a deficit Adjusted Capital Account Balance
in excess of such sum after all other allocations provided for in this Article V
have been tentatively made as if this Section 5.05(b) were not in
this Agreement.  This Section 5.05(b) is
intended to comply with the “qualified income offset” requirement of the Code
and shall be interpreted consistently therewith.

 

(d) Gross Income
Allocation.  If any Partner has a
deficit Capital Account at the end of any Fiscal Year which is in excess of the
sum of (i) the amount such Partner is obligated to restore, if any,
pursuant to any provision of this Agreement, and (ii) the amount such
Partner is deemed to be obligated to restore pursuant to the penultimate
sentences of Treasury Regulations Section 1.704-2(g)(1) and
1.704-2(i)(5), each such Partner shall be specially allocated items of
Partnership income and gain in the amount of such excess as quickly as
possible; provided that an allocation pursuant to this Section 5.05(c) shall
be made only if and to the extent that a Partner would have a deficit Capital
Account in excess of such sum after all other allocations provided for in this Article V
have been tentatively made as if Section 5.05(b) and this Section 5.05(c) were
not in this Agreement.

 

(e) Nonrecourse Deductions.  Nonrecourse Deductions shall be allocated to
the Partners in accordance with their respective Class A Percentage
Interests.

 

(f) Partner Nonrecourse
Deductions.  Partner Nonrecourse
Deductions for any taxable period shall be allocated to the Partner who bears
the economic risk of loss with respect to the liability to which such Partner
Nonrecourse Deductions are attributable in accordance with Treasury Regulations
Section 1.704-2(j).

 

(g) Creditable Non-U.S.
Taxes.  Creditable Non-U.S. Taxes for
any taxable period attributable to the Partnership, or an entity owned directly
or indirectly by the Partnership, shall be allocated to the Partners in
proportion to the partners’ distributive shares of income (including income
allocated pursuant to Section 704(c) of the Code) to which the
Creditable Non-U.S. Tax relates (under principles of Treasury Regulations Section 1.904-6).  The provisions of this Section 5.05(f) are
intended to comply with the provisions of Treasury Regulations Section 1.704-1
(b)(4)(viii), and shall be interpreted consistently therewith.

 

(h) Ameliorative
Allocations. Any special allocations of income or gain pursuant to Sections
5.05(b) or 5.05(c) shall be taken into account in computing
subsequent allocations pursuant to Section 5.04 and this Section 5.05(g),
so that the net amount of any items so allocated and all other items allocated
to each Partner shall, to the extent possible, be equal to the net amount that
would have been allocated to each Partner if such allocations pursuant to
Sections 5.05(b) or 5.05(c) had not occurred.

 

16

 

(i) Compensation
Deduction. If the Partnership is entitled to a deduction for compensation
to a person providing services to the Partnership or its subsidiaries the
economic cost of which is borne by a Partner (and not the Partnership or its
subsidiaries), whether paid in cash, Class A Units or other property, the
Partner who bore such economic cost shall be treated as having contributed to
the Partnership such cash, Class A Units or other property, and the
Partnership shall allocate the deduction attributable to such payment to such
Partner.  If any income or gain is recognized by the Partnership by reason
of such transfer of property to the person providing services to the
Partnership or its subsidiaries, such income or gain will be allocated to the
Partner who transferred such property.

 

SECTION 5.06.                                         Tax Allocations. 
For income tax purposes, each item of income, gain, loss and deduction
of the Partnership shall be allocated among the Partners in the same manner as
the corresponding items of Profits and Losses and specially allocated items are
allocated for Capital Account purposes; provided that in the case of any asset
the Carrying Value of which differs from its adjusted tax basis for U.S.
federal income tax purposes, income, gain, loss and deduction with respect to
such asset shall be allocated solely for income tax purposes in accordance with
the principles of Section 704(c)(1)(A) of the Code (using the
traditional method as set forth in Treasury Regulation 1.704-3(b), unless
otherwise agreed to by the Limited Partners) so as to take account of the
difference between Carrying Value and adjusted basis of such asset.  Notwithstanding the foregoing, a General
Partner may make such allocations as it deems reasonably necessary to ensure
allocations are made in accordance with a Partner’s interest in the
Partnership, taking into account such facts and circumstances as it deems
reasonably necessary for this purpose.

 

SECTION 5.07.                                         Tax Advances. 
To the extent a General Partner reasonably believes that the Partnership
is required by Law to withhold or to make tax payments on behalf of or with
respect to any Partner or the Partnership is subjected to tax itself by reason
of the status of any Partner (“Tax Advances”), such General Partner may
withhold such amounts and make such tax payments as so required.  All Tax Advances made on behalf of a Partner
shall be repaid by reducing the amount of the current or next succeeding
distribution or distributions which would otherwise have been made to such
Partner or, if such distributions are not sufficient for that purpose, by so
reducing the proceeds of liquidation otherwise payable to such Partner.  For all purposes of this Agreement such Partner shall be treated as
having received the amount of the distribution that is equal to the Tax
Advance.  Each Partner hereby agrees to indemnify and hold
harmless the Partnership and the other Partners from and against any liability
(including, without limitation, any liability for taxes, penalties, additions
to tax or interest) imposed as a result of the Partnership’s failure to
withhold or make a tax payment on behalf of such Partner, which withholding or
payment is required pursuant to applicable Law.

 

SECTION 5.08.                                         Tax Matters. 
The KKR Group Holdings L.P. shall be the initial “tax matters partner”
within the meaning of Section 6231(a)(7) of the Code (the “Tax
Matters Partner”). The Partnership shall file as a partnership for federal,
state, provincial and local income tax purposes, except where otherwise
required by Law. All elections required or permitted to be made by the
Partnership, and all other tax decisions and determinations relating to
federal, state, provincial or local tax matters of the Partnership, shall be
made by the Tax Matters Partner, in consultation with the Partnership’s
attorneys and/or accountants. Tax audits, controversies and litigations shall
be conducted under the direction of the Tax Matters Partner. The Tax Matters 

 

17

 

Partner shall keep the
other Partners reasonably informed as to any tax actions, examinations or
proceedings relating to the Partnership and shall submit to the other Partners,
for their review and comment, any settlement or compromise offer with respect
to any disputed item of income, gain, loss, deduction or credit of the
Partnership. As soon as reasonably practicable after the end of each Fiscal
Year, the Partnership shall send to each Partner a copy of U.S. Internal
Revenue Service Schedule K-1, and any comparable statements required by
applicable U.S. state or local income tax Law as a result of the Partnership’s
activities or investments, with respect to such Fiscal Year. The Partnership
also shall provide the Partners with such other information as may be
reasonably requested for purposes of allowing the Partners to prepare and file
their own tax returns.

 

SECTION 5.09.                                         Other Tax Provisions. 
Certain of the foregoing provisions and the other provisions of this
Agreement relating to the maintenance of Capital Accounts are intended to
comply with Treasury Regulations Section 1.704-1(b) and shall be
interpreted and applied in a manner consistent with such regulations.  Sections 5.03, 5.04 and 5.05 may be amended
at any time by a General Partner if necessary, in the opinion of qualified tax
advisor to the Partnership, to comply with such regulations or any other
applicable Law, so long as any such amendment does not materially change the
relative economic interests of the Partners.

 

ARTICLE
VI

 

BOOKS
AND RECORDS; REPORTS

 

SECTION 6.01.                                         Books and Records.  (a)  At all
times during the continuance of the Partnership, the Partnership shall prepare
and maintain separate books of account for the Partnership in accordance with
GAAP.

 

(a) Except as limited by Section 6.01(c),
each Limited Partner shall have the right to receive, for a purpose reasonably
related to such Limited Partner’s interest as a Limited Partner in the
Partnership, upon reasonable written demand stating the purpose of such demand
and at such Limited Partner’s own expense:

 

(i)                                     a copy of the
Statement and this Agreement and all amendments thereto, together with a copy
of the executed copies of all powers of attorney pursuant to which the
Statement and this Agreement and all amendments thereto have been executed; and

 

(ii)                                  promptly after
their becoming available, copies of the Partnership’s U.S. federal, state and
local income tax returns and reports, if any, for the three most recent years.

 

(b) The General Partners may
keep confidential from the Limited Partners, for such period of time as the
General Partners determine in their sole discretion, (i) any information
that the General Partners reasonably believe to be in the nature of trade
secrets or (ii) other information the disclosure of which the General
Partners believe is not in the best interests of the Partnership, could damage
the Partnership or its business or that the Partnership is required by Law or
by agreement with any third party to keep confidential.

 

18

 

ARTICLE
VII

 

PARTNERSHIP
UNITS

 

SECTION 7.01.                                         Units.  Interests in
the Partnership shall be represented by Units. 
The Units initially are comprised of two Classes: Class A Units and
Class B Units.  The General Partners
may establish, from time to time in accordance with such procedures as the
General Partners shall determine from time to time, other Classes, one or more
series of any such Classes, or other Partnership securities with such
designations, preferences, rights, powers and duties (which may be senior to
existing Classes and series of Units or other Partnership securities), as shall
be determined by the General Partners, including (i) the right to share in
Profits and Losses or items thereof; (ii) the right to share in
Partnership distributions; (iii) the rights upon dissolution and
liquidation of the Partnership; (iv) whether, and the terms and conditions
upon which, the Partnership may or shall be required to redeem the Units or
other Partnership securities (including sinking fund provisions); (v) whether
such Unit or other Partnership security is issued with the privilege of
conversion or exchange and, if so, the terms and conditions of such conversion
or exchange; (vi) the terms and conditions upon which each Unit or other
Partnership security will be issued, evidenced by certificates and assigned or
transferred; (vii) the method for determining the Class A Percentage
Interest and Class B Percentage Interest as to such Units or other
Partnership securities; and (viii) the right, if any, of the holder of
each such Unit or other Partnership security to vote on Partnership matters,
including matters relating to the relative designations, preferences, rights,
powers and duties of such Units or other Partnership securities. Except as
expressly provided in this Agreement to the contrary, any reference to “Units”
shall include the Class A Units, the Class B Units and any other
Classes that may be established in accordance with this Agreement.  All Units of a particular Class shall
have identical rights in all respects as all other Units of such Class, except
in each case as otherwise specified in this Agreement.

 

SECTION 7.02.                                         Register.  To the extent
required by the Act, the Partnership will maintain at its registered office a
register of limited partner interests that will include the name and address of
each Limited Partner and such other information required by the Act. The
register of the Partnership shall be the definitive record of ownership of each
Unit and all relevant information with respect to each Partner.  Unless a General Partner shall determine
otherwise, Units shall be uncertificated and recorded in the books and records
of the Partnership.

 

SECTION 7.03.                                         Registered Partners. 
The Partnership shall be entitled to recognize the exclusive right of a
Person registered on its records as the owner of Units for all purposes and
shall not be bound to recognize any equitable or other claim to or interest in
Units on the part of any other Person, whether or not it shall have express or
other notice thereof, except as otherwise provided by the Act or other
applicable Law.

 

SECTION 7.04.                                         Exchange Transactions. 
To the extent permitted to do so under the Exchange Agreement, a Limited
Partner may exchange all or a portion of the Class A Units owned by such
Limited Partner for Common Units.

 

19

 

SECTION 7.05.                                         Transfers; Encumbrances.

 

(a)                          No Limited
Partner or Assignee may Transfer all or any portion of its Units (or any
beneficial interest therein), other than in connection with an exchange
permitted pursuant to Section 7.04, unless a General Partner consents in
writing thereto, which consent may be given or withheld, or made subject to
such conditions as are determined by such General Partner, in such General
Partner’s sole discretion and, in the case of Class B Units, unless such
Transferee enters into a contribution and indemnification agreement that is
substantially consistent with the Contribution and Indemnification Agreement.
Any purported Transfer that is not in accordance with this Agreement shall be,
to the fullest extent permitted by Law, null and void.

 

(b)                         No Limited
Partner or Assignee may create an Encumbrance with respect to all or any
portion of its Units (or any beneficial interest therein) other than
Encumbrances that run in favor of the Limited Partner unless a General Partner
consents in writing thereto, which consent may be given or withheld, or made
subject to such conditions as are determined by such General Partner, in such
General Partner’s sole discretion. 
Consent of a General Partner shall be withheld until the holder of the
Encumbrance acknowledges the terms and conditions of this Agreement.  Any purported Encumbrance that is not in
accordance with this Agreement shall be, to the fullest extent permitted by
Law, null and void.

 

SECTION 7.06.                                         Further Restrictions. 
Notwithstanding any contrary provision in this Agreement, in no event
may any Transfer of a Unit be made by any Limited Partner or Assignee if:

 

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

 

(b)                         such Transfer
would require the registration of such transferred Unit or of any Class of
Unit pursuant to any applicable U.S. federal or state securities laws
(including, without limitation, the Securities Act or the Exchange Act) or
other non-U.S securities laws or would constitute a non-exempt distribution
pursuant to applicable provincial or state securities laws;

 

(c)                          such Transfer
would cause the Partnership to become a publicly traded partnership taxable as
a corporation for U.S. federal tax law purposes;

 

(d)                         such Transfer
would cause (i) all or any portion of the assets of the Partnership to (A) constitute
“plan assets” (under ERISA, the Code or any applicable Similar Law) of any
existing or contemplated Limited Partner, or (B) be subject to the
provisions of ERISA, Section 4975 of the Code or any applicable Similar
Law, or (ii) a General Partner to become a fiduciary with respect to any
existing or contemplated Limited Partner, pursuant to ERISA, any applicable
Similar Law, or otherwise;

 

(e)                          to the extent requested by a General Partner, the Partnership does not
receive such legal or tax opinions and written instruments (including, without
limitation, copies of any instruments of Transfer and such Assignee’s consent
to be bound by this Agreement as 

 

20

 

an Assignee) that are in a form satisfactory to such General Partner, as determined in such General Partner’s sole discretion.

 

SECTION 7.07.                                         Rights of
Assignees.  Subject to Section 7.09,
the Transferee of any permitted Transfer pursuant to this Article VII will
be an assignee only (“Assignee”), and only will receive, to the extent
transferred, the distributions and allocations of income, gain, loss,
deduction, credit or similar item to which the Partner which transferred its
Units would be entitled, and such Assignee will not be entitled or enabled to
exercise any other rights or powers of a Partner, such other rights, and all
obligations relating to, or in connection with, such Interest remaining with
the transferring Partner.  The
transferring Partner will remain a Partner even if it has transferred all of
its Units to one or more Assignees until such time as the Assignee(s) is
admitted to the Partnership as a Partner pursuant to Section 7.09.

 

SECTION 7.08.                                         Admissions, Withdrawals and Removals.

 

(a) A General Partner may
not be removed.

 

(b) No Person may be
admitted to the Partnership as an additional General Partner or substitute
General Partner without the prior written consent or ratification of Partners
whose Class A Percentage Interests exceed 50% of the Class A
Percentage Interests of all Partners in the aggregate. A General Partner will
not be entitled to Transfer all of its Units or to withdraw from being a
General Partner of the Partnership unless another General Partner shall have
been admitted hereunder (and not have previously been removed or withdrawn).

 

(c) No Limited Partner will
be removed or entitled to withdraw from being a Partner of the Partnership
except in accordance with Section 7.10.

 

(d) Except as otherwise
provided in Article VIII or the Act, no admission, substitution, withdrawal
or removal of a Partner will cause the dissolution of the Partnership.  To the fullest extent permitted by law, any
purported admission, withdrawal or removal that is not in accordance with this
Agreement shall be null and void.

 

SECTION 7.09.                                         Admission of Assignees as Substitute
Limited Partners.

 

An Assignee will become a substitute Limited Partner
only if and when each of the following conditions is satisfied:

 

(a)                          a General
Partner consents in writing to such admission, which consent may be given or
withheld, or made subject to such conditions as are determined by such General
Partner, in each case in such General Partner’s sole discretion;

 

(b)                         if required by
a General Partner, such General Partner receives written instruments
(including, without limitation, copies of any instruments of Transfer and such
Assignee’s consent to be bound by this Agreement as a substitute Limited
Partner) that are in a form satisfactory to such General Partner (as determined
in its sole discretion);

 

21

 

(c)                          if required by
a General Partner, such General Partner receives an opinion of counsel
satisfactory to such General Partner to the effect that such Transfer is in
compliance with this Agreement and all applicable Law; and

 

(d)                         if required by
a General Partner, the parties to the Transfer, or any one of them, pays all of
the Partnership’s reasonable expenses connected with such Transfer (including,
but not limited to, the reasonable legal and accounting fees of the
Partnership).

 

SECTION 7.10.                 Withdrawal and Removal of Limited Partners. 
If a Limited Partner ceases to hold any Units, then such Limited Partner
shall withdraw from the Partnership and shall cease to be a Limited Partner and
to have the power to exercise any rights or powers of a Limited Partner.

 

ARTICLE
VIII

 

DISSOLUTION,
LIQUIDATION AND TERMINATION

 

SECTION 8.01.                 No Dissolution.  Except as
required by the Act, the Partnership shall not be dissolved by the admission of
additional Partners or withdrawal of Partners in accordance with the terms of
this Agreement.  The Partnership may be
dissolved, liquidated wound up and terminated only pursuant to the provisions
of this Article VIII, and the Partners hereby irrevocably waive any and
all other rights they may have to cause a dissolution of the Partnership or a
sale or partition of any or all of the Partnership assets.

 

SECTION 8.02.                 Events Causing Dissolution. 
The Partnership shall be dissolved and its affairs shall be wound up
upon the occurrence of any of the following events (each, a “Dissolution Event”):

 

(a)                          the entry of a
decree of judicial dissolution of the Partnership under Section 15 of the
Act upon the finding by a court of competent jurisdiction that the General
Partners (i) are permanently incapable of performing their part of this Agreement,
(ii) have been guilty of conduct that is calculated to affect
prejudicially the carrying on of the business of the Partnership, (iii) willfully
or persistently commit a material breach of this Agreement or (iv) conduct
themselves in a manner relating to the Partnership or its business such that it
is not reasonably practicable for the other Partners to carry on the business
of the Partnership with the General Partners;

 

(b)                         any event which
makes it unlawful for the business of the Partnership to be carried on by the
Partners;

 

(c)                          the written
consent of all Partners;

 

(d)                         any other event
not inconsistent with any provision hereof causing a dissolution of the
Partnership under the Act, including any action brought in accordance with Section 15(4)(f) of
the Act;

 

(e)                          the Incapacity
or removal of the General Partners or the occurrence of any other event
including any event prescribed under Section 15(5) of the Act, which
causes 

 

22

 

the
General Partners to cease to be the general partners of the Partnership; provided that
the Partnership will not be dissolved or required to be wound up in
connection with any of the events specified in this Section 8.02(e) if:
(i) at the time of the occurrence of such event there is at least one
Cayman Islands incorporated or registered general partner of the Partnership
who is hereby authorized to, and elects to, carry on the business of the
Partnership; or (ii) in the event the Partnership does not have at least
one Cayman Islands incorporated or registered general partner, all remaining
Limited Partners consent to or ratify the continuation of the business of the
Partnership and the appointment of a Cayman Islands incorporated or registered
general partner of the Partnership within 90 days of the service of a notice by
the General Partner (or its legal representative) on all Limited Partners
informing them of the occurrence of any such event.

 

SECTION 8.03.                 Distribution upon Dissolution. 
Upon dissolution, the Partnership shall not be terminated and shall
continue until the winding up of the affairs of the Partnership is completed.
Upon the winding up of the Partnership, a General Partner, or any other Person
designated by a General Partner (the “Liquidation Agent”), shall take full
account of the assets and liabilities of the Partnership and shall, unless a
General Partner determines otherwise, liquidate the assets of the Partnership
as promptly as is consistent with obtaining the fair value thereof. The
proceeds of any liquidation shall be applied and distributed in the following
order:

 

(a)                          First, to the
satisfaction of debts and liabilities of the Partnership (including
satisfaction of all indebtedness to Partners and their Affiliates to the extent
otherwise permitted by Law) including the expenses of liquidation, and
including the establishment of any reserve which the Liquidation Agent shall
deem reasonably necessary for any contingent, conditional or unmatured
contractual liabilities or obligations of the Partnership (“Contingencies”).
Any such reserve may be paid over by the Liquidation Agent to any
attorney-at-law, or acceptable party, as escrow agent, to be held for
disbursement in payment of any Contingencies and, at the expiration of such
period as shall be deemed advisable by the Liquidation Agent for distribution
of the balance in the manner hereinafter provided in this Section 8.03;
and

 

(b)                         The balance, if
any, to the Partners in accordance with Section 4.01.

 

SECTION 8.04.                 Time for Liquidation.  A reasonable
amount of time shall be allowed for the orderly liquidation of the assets of
the Partnership and the discharge of liabilities to creditors so as to enable
the Liquidation Agent to minimize the losses attendant upon such liquidation.

 

SECTION 8.05.                 Termination.  The
Partnership shall terminate when all of the assets of the Partnership, after
payment of or due provision for all debts, liabilities and obligations of the
Partnership, shall have been distributed to the holders of Units in the manner
provided for in this Article VIII and a notice of dissolution signed by a
General Partner has been filed with the Cayman Islands Registrar of Exempted
Limited Partnerships.

 

SECTION 8.06.                 Claims of the Partners.  The Partners
shall look solely to the Partnership’s assets for the return of their Capital
Contributions, and if the assets of the Partnership remaining after payment of
or due provision for all debts, liabilities and obligations of the 

 

23

 

Partnership are insufficient
to return such Capital Contributions, the Partners shall have no recourse
against the Partnership or any other Partner or any other Person. No Partner
with a negative balance in such Partner’s Capital Account shall have any
obligation to the Partnership or to the other Partners or to any creditor or
other Person to restore such negative balance during the existence of the
Partnership, upon dissolution or termination of the Partnership or otherwise,
except to the extent required by the Act.

 

SECTION 8.07.                 Survival of Certain Provisions. 
Notwithstanding anything to the contrary in this Agreement, the
provisions of Section 9.02 and Section 10.10 shall survive the
termination of the Partnership.

 

ARTICLE
IX

 

LIABILITY
AND INDEMNIFICATION

 

SECTION 9.01.                 Liability of Partners.

 

(a) No
Limited Partner shall be liable for any debt, obligation or liability of the
Partnership or of any other Partner or have any obligation to restore any
deficit balance in its Capital Account solely by reason of being a Partner of
the Partnership, except to the extent required by the Act.

 

(b)  This Agreement is not
intended to, and does not, create or impose any fiduciary duty on any of the
Partners (including without limitation, the General Partners) hereto or on
their respective Affiliates.  Further,
the Partners hereby waive any and all fiduciary duties that, absent such
waiver, may exist at or be implied by Law, and in doing so, recognize,
acknowledge and agree that their duties and obligations to one another and to
the Partnership are only as expressly set forth in this Agreement and those
required by the Act.

 

(c) To the extent that,
under Law, any Partner (including
without limitation, the General Partners) has duties (including
fiduciary duties) and liabilities relating thereto to the Partnership or to
another Partner, the Partners (including
without limitation, the General Partners) acting under this Agreement
will not be liable to the Partnership or to any such other Partner for their
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 relating
thereto of any Partner (including
without limitation, the General Partners) otherwise existing under
Law, are agreed by the Partners to replace to that extent such other duties and
liabilities of the Partners relating thereto (including
without limitation, the General Partners).

 

(d) The General Partners may
consult with legal counsel, accountants and financial or other advisors and any
act or omission suffered or taken by the General Partners on behalf of the
Partnership or in furtherance of the interests of the Partnership in good faith
in reliance upon and in accordance with the advice of such counsel, accountants
or financial or other advisors will be full justification for any such act or
omission, and the General Partners will be fully protected in so acting or
omitting to act so long as such counsel or accountants or financial or other
advisors were selected with reasonable care.

 

24

 

(e) Notwithstanding any
other provision of this Agreement or otherwise applicable provision of Law,
whenever in this Agreement a General Partner is permitted or required to make a
decision (i) in its “sole discretion” or “discretion” or under a grant of
similar authority or latitude, such General Partner shall be entitled to
consider only such interests and factors as it desires, including its own
interests, and shall, to the fullest extent permitted by applicable Law, have
no duty or obligation to give any consideration to any interest of or factors
affecting the Partnership or the Limited Partners, or (ii) in its “good
faith” or under another expressed standard, such General Partner shall act
under such express standard and shall not be subject to any other or different
standards.

 

SECTION 9.02.                 Indemnification.

 

(a) Indemnification.
To the fullest extent permitted by law, the Partnership shall indemnify any
person (including such person’s heirs, executors or administrators) who was or
is made or is threatened to be made a party to or is otherwise involved in any
threatened, pending or completed action, suit, claim or proceeding (brought in
the right of the Partnership or otherwise), whether civil, criminal,
administrative or investigative, and whether formal or informal, including
appeals, by reason of the fact that such person, or a person for whom such
person was the legal representative, is or was a Partner (including without limitation, the General Partners) or a director,
officer, partner, trustee, manager, member, employee or agent of a Partner (including without limitation, the General Partners) or the
Partnership or, while a director, officer, partner, trustee, manager, member,
employee or agent of a Partner (including
without limitation, the General Partners) or the Partnership, is or
was serving at the request of the Partnership as a director, officer, partner,
trustee, manager, member, employee or agent of another corporation, partnership,
joint venture, trust, limited liability company, nonprofit entity or other
enterprise or person (an “Other Company”), for and against all loss and
liability suffered and expenses (including attorneys’ fees), judgments, fines
and amounts paid in settlement reasonably incurred by such person in connection
with such action, suit, claim or proceeding, including appeals; provided that such person shall not be
entitled to indemnification hereunder only to the extent such person’s conduct
constituted fraud, bad faith or willful misconduct.  Notwithstanding the preceding sentence,
except as otherwise provided in Section 9.02(c), the Partnership shall be
required to indemnify a person described in such sentence in connection with
any action, suit, claim or proceeding (or part thereof) commenced by such
person only if the commencement of such action, suit, claim or proceeding (or
part thereof) by such person was authorized by a General Partner. The
indemnification of a person who is or was serving at the request of the
Partnership as a director, officer, partner, trustee, manager, member, employee
or agent of an Other Company shall be secondary to any and all indemnification
to which such person is entitled from, firstly, the relevant Other Company, and
from, secondly, the relevant Fund (if applicable), and will only be paid to the
extent the primary indemnification is not paid and the provisos set forth in
the first sentence of this Section 9.02(a) do not apply; provided
that such Other Company and such Fund shall not be entitled to contribution or
indemnification from or subrogation against the Partnership, unless otherwise
mandated by applicable law.  If,
notwithstanding the foregoing sentence, the Partnership makes an indemnification
payment or advances expenses to such a person entitled to primary
indemnification, the Partnership shall be subrogated to the rights of such
person against the person or persons responsible for the primary
indemnification.  “Fund” means any
fund, investment vehicle or account whose investments are managed or advised by
the Partnership (if any) or an affiliate thereof.

 

25

 

(b) Advancement of Expenses.  To the fullest extent permitted by Law, the
Partnership shall promptly pay expenses (including attorneys’ fees) incurred by
any person described in Section 9.02(a) in appearing at,
participating in or defending any action, suit, claim or proceeding in advance
of the final disposition of such action, suit, claim or proceeding, including appeals,
upon presentation of an undertaking on behalf of such person to repay such
amount if it shall ultimately be determined that such person is not entitled to
be indemnified under this Section 9.02 or otherwise.  Notwithstanding the preceding sentence,
except as otherwise provided in Section 9.02(c), the Partnership shall be
required to pay expenses of a person described in such sentence in connection
with any action, suit, claim or proceeding (or part thereof) commenced by such
person only if the commencement of such action, suit, claim or proceeding (or
part thereof) by such person was authorized by a General Partner.

 

(c) Unpaid Claims.  If a claim for indemnification (following the
final disposition of such action, suit, claim or proceeding) or advancement of
expenses under this Section 9.02 is not paid in full within thirty (30)
days after a written claim therefor by any person described in Section 9.02(a) has
been received by the Partnership, such person may file proceedings to recover
the unpaid amount of such claim and, if successful in whole or in part, shall
be entitled to be paid the expense of prosecuting such claim.  In any such action the Partnership shall have
the burden of proving that such person is not entitled to the requested
indemnification or advancement of expenses under applicable Law.

 

(d) Insurance.  To the fullest extent permitted by law, the
Partnership may purchase and maintain insurance on behalf of any person
described in Section 9.02(a) against any liability asserted against such
person, whether or not the Partnership would have the power to indemnify such
person against such liability under the provisions of this Section 9.02 or
otherwise.

 

(e) Enforcement of Rights.  The provisions of this Section 9.02
shall be applicable to all actions, claims, suits or proceedings made or
commenced on or after the Effective Time, whether arising from acts or
omissions to act occurring on, before or after its adoption.  The provisions of this Section 9.02
shall be deemed to be a contract between the Partnership and each person
entitled to indemnification under this Section 9.02 (or legal
representative thereof) who serves in such capacity at any time while this Section 9.02
and the relevant provisions of applicable Law, if any, are in effect, and any
amendment, modification or repeal hereof shall not affect any rights or
obligations then existing with respect to any state of facts or any action,
suit, claim or proceeding then or theretofore existing, or any action, suit,
claim or proceeding thereafter brought or threatened based in whole or in part
on any such state of facts.  If any
provision of this Section 9.02 
shall be found to be invalid or limited in application by reason of any
Law, it shall not affect the validity of the remaining provisions hereof.  The rights of indemnification provided in
this Section 9.02 shall neither be exclusive of, nor be deemed in
limitation of, any rights to which any person may otherwise be or become
entitled or permitted by contract, this Agreement, insurance or as a matter of
Law, both as to actions in such person’s official capacity and actions in any
other capacity, it being the policy of the Partnership that indemnification of
any person whom the Partnership is obligated to indemnify pursuant to Section 9.02(a) shall
be made to the fullest extent permitted by Law.

 

(f) Benefit Plans.  For purposes of this Section 9.02,
references to “other enterprises” shall include employee benefit plans;
references to “fines” shall include any excise taxes assessed on a person with
respect to an employee benefit plan; and references to “serving at the request
of the 

 

26

 

Partnership” shall include
any service as a director, officer, employee or agent of the Partnership which
imposes duties on, or involves services by, such director, officer, employee,
or agent with respect to an employee benefit plan, its participants, or
beneficiaries.

 

(g) Non-Exclusivity.  This Section 9.02  shall not limit
the right of the Partnership, to the extent and in the manner permitted by law,
to indemnify and to advance expenses to, and purchase and maintain insurance on
behalf of, persons other than persons described in Section 9.02(a).

 

ARTICLE
X

 

MISCELLANEOUS

 

SECTION 10.01.           Severability. 
If any term or other provision of this Agreement is held to be invalid,
illegal or incapable of being enforced by any rule of Law, or public
policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions is not affected in any manner materially adverse
to any party. Upon a determination that any term or other provision is invalid,
illegal or incapable of being enforced, the parties hereto shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the
parties as closely as possible in a mutually acceptable manner in order that
the transactions contemplated hereby be consummated as originally contemplated
to the fullest extent possible.

 

SECTION 10.02.           Notices. 
All notices, requests, claims, demands and other communications
hereunder shall be in writing and shall be given (and shall be deemed to have
been duly given upon receipt) by delivery in person, by courier service, by
fax, or by registered or certified mail (postage prepaid, return receipt
requested) to the respective parties at the following addresses (or at such
other address for a party as shall be specified in a notice given in accordance
with this Section 10.02):

 

(a)  If to the
Partnership, to:

 

KKR Fund Holdings L.P.

c/o KKR & Co. L.P.

9 West 57th Street, Suite 4200

New York, New York, 10019

Attention: Chief Financial Officer

Fax: (212) 750-0003

 

(b)  If to any
Partner, to:

 

c/o KKR & Co. L.P.

9 West 57th Street, Suite 4200

New York, New York, 10019

Attention: Chief Financial Officer

Fax: (212) 750-0003

 

27

 

(c) If to the
General Partners, to:

 

KKR Group Holdings L.P.

9 West 57th Street, Suite 4200

New York, New York, 10019

Attention: Chief Financial Officer

Fax: (212) 750-0003

 

and

 

KKR Fund Holdings GP Limited

c/o KKR & Co. L.P.

9 West 57th Street, Suite 4200

New York, New York, 10019

Attention: Chief Financial Officer

Fax: (212) 750-0003

 

SECTION 10.03.           Cumulative
Remedies.  The rights and remedies provided by this
Agreement are cumulative and the use of any one right or remedy by any party
shall not preclude or waive its right to use any or all other remedies. Said
rights and remedies are given in addition to any other rights the parties may
have by Law.

 

SECTION 10.04.           Binding
Effect.  This Agreement shall be binding upon and
inure to the benefit of all of the parties and, to the extent permitted by this
Agreement, their successors, executors, administrators, heirs, legal
representatives and assigns.

 

SECTION 10.05.           Interpretation. 
Unless the context requires otherwise: (a) any pronoun used in this
Agreement shall include the corresponding masculine, feminine or neuter forms,
and the singular form of nouns, pronouns and verbs shall include the plural and
vice versa; (b) references to Articles and Sections refer to Articles and
Sections of this Agreement; and (c) the terms “include,” “includes,” “including”
or words of like import shall be deemed to be followed by the words “without
limitation;” and the terms “hereof,” “herein” or “hereunder” refer to this
Agreement as a whole and not to any particular provision of this Agreement. The
table of contents and headings contained in this Agreement are for reference purposes
only, and shall not affect in any way the meaning or interpretation of this
Agreement.

 

SECTION 10.06.           Counterparts. 
This Agreement may be executed and delivered (including by facsimile
transmission) in one or more counterparts, and by the different parties hereto
in separate counterparts, each of which when executed and delivered shall be
deemed to be an original but all of which taken together shall constitute one
and the same agreement. Copies of executed counterparts transmitted by telecopy
or other electronic transmission service shall be considered original executed
counterparts for purposes of this Section 10.06.

 

SECTION 10.07.           Further
Assurances. Each
Limited Partner shall perform all other acts and execute and deliver all other
documents as may be necessary or appropriate to carry out the purposes and
intent of this Agreement.

 

28

 

SECTION 10.08.                            Entire Agreement.  This
Agreement constitutes the entire agreement among the parties hereto pertaining
to the subject matter hereof and supersedes all prior agreements and
understandings pertaining thereto.

 

SECTION 10.09.                            Governing Law. This Agreement 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.

 

SECTION 10.10.                            Arbitration.

 

(a) Any and all disputes
which cannot be settled amicably, including any ancillary claims of any party
arising out of, relating to or in connection with the validity, negotiation,
execution, interpretation, performance or non-performance of this Agreement
(including without limitation the validity, scope and enforceability of this
arbitration provision) shall be finally settled by arbitration conducted by a
single arbitrator in New York, New York in accordance with the then-existing Rules of
Arbitration of the International Chamber of Commerce;
provided, however, that KKR Intermediate Partnership L.P., a Cayman limited
partnership, in its capacity as a Limited Partner, shall not be subject to this
Section 10.10. If the parties to the dispute fail to agree on the
selection of an arbitrator within thirty (30) days of the receipt of the
request for arbitration, the International Chamber of Commerce shall make the
appointment.  The arbitrator shall be a
lawyer and shall conduct the proceedings in the English language. Performance
under this Agreement shall continue if reasonably possible during any
arbitration proceedings. Except as required by law or as may be reasonably
required in connection with ancillary judicial proceedings to compel
arbitration, to obtain temporary or preliminary judicial relief in aid of arbitration,
or to confirm or challenge an arbitration award, the arbitration proceedings,
including any hearings, shall be confidential, and the parties shall not
disclose any awards, any materials in the proceedings created for the purpose
of the arbitration, or any documents produced by another party in the
proceedings not otherwise in the public domain. 

 

(b) Notwithstanding the
provisions of paragraph (a), a General Partner may bring, or may cause the
Partnership to bring, on behalf of such General Partner or the Partnership or
on behalf of one or more Partners, an action or special proceeding in any court
of competent jurisdiction for the purpose of compelling a party to arbitrate,
seeking temporary or preliminary relief in aid of an arbitration hereunder, or
enforcing an arbitration award and, for the purposes of this paragraph (b),
each Partner (i) expressly consents to the application of paragraph (c) of
this Section 10.10 to any such action or proceeding, (ii) agrees that
proof shall not be required that monetary damages for breach of the provisions
of this Agreement would be difficult to calculate and that remedies at law
would be inadequate, and (iii) irrevocably appoints such General Partner
as such Partner’s agent for service of process in connection with any such
action or proceeding and agrees that service of process upon such agent, who
shall promptly advise such Partner of any such service of process, shall be
deemed in every respect effective service of process upon the Partner in any
such action or proceeding.

 

(c) EACH PARTNER HEREBY
IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE FEDERAL AND STATE COURTS LOCATED
IN NEW YORK, NEW YORK FOR THE PURPOSE OF ANY JUDICIAL PROCEEDING BROUGHT IN
ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 10.10, OR ANY JUDICIAL
PROCEEDING ANCILLARY TO AN ARBITRATION OR CONTEMPLATED ARBITRATION ARISING OUT
OF OR RELATING TO OR CONCERNING THIS AGREEMENT. Such ancillary

 

29

 

judicial proceedings include
any suit, action or proceeding to compel arbitration, to obtain temporary or
preliminary judicial relief in aid of arbitration, or to confirm or challenge
an arbitration award. The parties acknowledge that the fora designated by this
paragraph (c) have a reasonable relation to this Agreement, the
Partnership and to the parties’ relationship with one another. The Partners and
the Partnership hereby waive, to the fullest extent permitted by applicable
Law, any objection which they now or hereafter may have to personal jurisdiction
or to the laying of venue of any such ancillary suit, action or proceeding
referred to in this Section 10.10 brought in any court referenced herein
and such parties agree not to plead or claim the same.

 

SECTION 10.11.                            Expenses.  Except as
otherwise specified in this Agreement, the Partnership shall be responsible for
all costs and expenses, including, without limitation, fees and disbursements
of counsel, financial advisors and accountants, incurred in connection with its
operation.

 

SECTION 10.12.                            Amendments and Waivers.  (a) This
Agreement (including the Annexes hereto) may be amended, supplemented, waived
or modified by the action of the General Partners without the consent of any
other Partner; provided that any amendment that would have a material adverse
effect on the rights or preferences of any Class of Units in relation to
other Classes of Units must be approved by the holders of not less than a
majority of the Class A Percentage Interests; provided further, that the
General Partners may, without the written consent of any Limited Partner or any
other Person, amend, supplement, waive or modify any provision of this
Agreement and execute, swear to, acknowledge, deliver, file and record whatever
documents may be required in connection therewith, to reflect: (i) any
amendment, supplement, waiver or modification that the General Partners
determine to be necessary or appropriate in connection with the creation,
authorization or issuance of any class or series of equity interest in the
Partnership; (ii) the admission, substitution, withdrawal or removal of
Partners in accordance with this Agreement; (iii) a change in the name of
the Partnership, the location of the principal place of business of the
Partnership or the registered office of the Partnership; (iv) any
amendment, supplement, waiver or modification that the General Partners
determine in their sole discretion to be necessary or appropriate to address
changes in U.S. federal income tax regulations, legislation or interpretation;
and (v) a change in the Fiscal Year or taxable year of the Partnership and
any other changes that the General Partners determine to be necessary or
appropriate as a result of a change in the Fiscal Year or taxable year of the
Partnership including a change in the dates on which distributions are to be
made by the Partnership.

 

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

 

(b) The General Partners
may, in their sole discretion, unilaterally amend this Agreement on or before
the effective date of the final regulations to provide for (i) the
election of a safe harbor under proposed Treasury Regulation Section 1.83-3(l) (or
any similar provision) under which the fair market value of a partnership
interest that is transferred is treated as being equal to the liquidation value
of that interest, (ii) an agreement by the Partnership and each of its
Partners to comply with all of the requirements set forth in such regulations
and Notice 2005-43 (and any other

 

30

 

guidance provided by the
U.S. Internal Revenue Service with respect to such election) with respect to
all partnership interests transferred in connection with the performance of
services while the election remains effective, (iii) the allocation of
items of income, gains, deductions and losses required by the final regulations
similar to proposed Treasury Regulation Section 1.704-1(b)(4)(xii)(b) and
(c), and (iv) any other related amendments.

 

(c) Except as may be
otherwise required by law in connection with the winding-up, liquidation, or
dissolution of the Partnership, each Partner hereby irrevocably waives any and
all rights that it may have to maintain an action for judicial accounting or
for partition of any of the Partnership’s property.

 

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 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 (other than pursuant to Section 9.02).

 

SECTION 10.14.                            Headings.  The headings
and subheadings in this Agreement are included for convenience and
identification only and are in no way intended to describe, interpret, define
or limit the scope, extent or intent of this Agreement or any provision hereof.

 

SECTION 10.15.                            Construction.  Each party
hereto acknowledges and agrees it has had the  opportunity
to draft, review and edit the language of this Agreement and that it is the
intent of the parties hereto that no presumption for or against any party
arising out of drafting all or any part of this Agreement will be applied in
any dispute relating to, in connection with or involving this Agreement.
Accordingly, the parties hereby waive to the fullest extent permitted by law
the benefit of any rule of Law or any legal decision that would require
that in cases of uncertainty, the language of a contract should be interpreted
most strongly against the party who drafted such language.

 

SECTION 10.16.                            Power of Attorney.  (a) Each
Limited Partner, by its execution hereof, hereby irrevocably makes, constitutes
and appoints each General Partner as its true and lawful agent and attorney in
fact, with full power of substitution and full power and authority in its name,
place and stead, to make, execute, sign, acknowledge, swear to, record and file
(i) to execute all instruments relating to an assignment or transfer of
all or part of a Limited Partner’s interest in the Partnership or to the
admission of any new or substitute Partner, (ii) this Agreement and any
amendment to this Agreement that has been adopted as herein provided; (iii) the
Statement and all amendments thereto required or permitted by law or the
provisions of this Agreement; (iv) all statements and other instruments
(including consents and ratifications which the Limited Partners have agreed to
provide upon a matter receiving the agreed support of Limited Partners) deemed
advisable by a General Partner to carry out the provisions of this Agreement
(including the provisions of Section 7.04) and Law or to permit the
Partnership to become or to continue as a limited partnership or partnership
wherein the Limited Partners have limited liability in each jurisdiction where
the Partnership may be doing business; (v) all instruments that a General
Partner deems appropriate to reflect a change or modification of this Agreement
or the Partnership in accordance with this Agreement, including, without
limitation, the admission of additional Limited Partners or substituted Limited
Partners pursuant to the provisions of this Agreement; (vi) all

 

31

 

conveyances and other
instruments or papers deemed advisable by a General Partner to effect the
liquidation and termination of the Partnership; and (vii) all fictitious
or assumed name certificates required or permitted (in light of the Partnership’s
activities) to be filed on behalf of the Partnership.

 

(b)                                 The appointment by all
Limited Partners of each General Partner as attorney-in-fact will be deemed to
secure performance by each Limited Partner of his obligations under this
Agreement and will be relying upon the power of the General Partners to act as
contemplated by this Agreement in any filing and other action by it on behalf
of the Partnership, will survive the disability or Incapacity of any Person
hereby giving such power, and the transfer or assignment of all or any portion
of the Units of such Person, and will not be affected by the subsequent
Incapacity of the principal.  In the
event of the assignment by a Partner of all of its Units, the foregoing power
of attorney of an assignor Partner will survive such assignment until such
Partner has withdrawn from the Partnership pursuant to Section 7.10.

 

SECTION 10.17.                            Schedules.  A General
Partner may from time to time execute and deliver to the Limited Partners
schedules which set forth information contained in the books and records of the
Partnership and any other matters deemed appropriate by such General Partner.  Such schedules shall be for information
purposes only and shall not be deemed to be part of this Agreement for any
purpose whatsoever.

 

SECTION 10.18.                            Partnership Status.  The parties
intend to treat the Partnership as a partnership for U.S. federal income tax
purposes, and no person shall take any action inconsistent with such
classification.

 

SECTION 10.19.                            Effectiveness.  This
Agreement shall become effective upon the Effective Time and prior to such time
this Agreement shall have no force or effect and the Original Agreement, as may
be amended other than pursuant to this Agreement, shall remain in full force
and effect and shall continue to constitute the limited partnership agreement
of the Partnership until the Effective Time.

 

[Remainder of Page Intentionally
Left Blank]

 

32

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as a deed or
have caused this Agreement to be duly executed as a deed by their respective
authorized officers, in each case on the date first above stated.

 

	
  Executed
  as a deed

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  KKR
  GROUP HOLDINGS L.P., as General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  KKR &
  Co. L.P., its general partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  KKR
  Management LLC, its general partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  WILLIAM J. JANETSCHEK

  	
   

  	
  /s/
  CHRISTOPHER LEE

  
	
   

  	
  Name:
  William J. Janetschek

  	
   

  	
  Name:
  Christopher Lee

  
	
   

  	
  Title:
  Chief Financial Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Executed
  as a deed

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  KKR
  FUND HOLDINGS GP LIMITED, as General Partner

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  WILLIAM J. JANETSCHEK

  	
   

  	
  /s/
  CHRISTOPHER LEE

  
	
   

  	
  Name:
  William J. Janetschek

  	
   

  	
  Name:
  Christopher Lee

  
	
   

  	
  Title:
  Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Executed
  as a deed

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  KKR
  INTERMEDIATE PARTNERSHIP L.P.,

  as Limited Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  KKR Intermediate Partnership GP Limited,

  its general partner

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  WILLIAM J. JANETSCHEK

  	
   

  	
  /s/
  CHRISTOPHER LEE

  
	
   

  	
  Name:
  William J. Janetschek

  	
   

  	
  Name:
  Christopher Lee

  
	
   

  	
  Title:
  Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Executed
  as a deed

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  WILLIAM J. JANETSCHEK

  	
   

  	
  /s/
  CHRISTOPHER LEE

  
	
  William
  J. Janetschek, as Initial Limited Partner

  	
   

  	
  Name:
  Christopher Lee

  

 

 

	
  Executed
  as a deed

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  KKR &
  Co. L.P., as Retiring General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  KKR Management LLC, its general partner

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  WILLIAM J. JANETSCHEK

  	
   

  	
  /s/
  CHRISTOPHER LEE

  
	
   

  	
  Name:
  William J. Janetschek

  	
   

  	
  Name:
  Christopher Lee

  
	
   

  	
  Title: Chief Financial Officer

  	
   

  	
   

  

 

 

ANNEX A

 

KKR Group Holdings L.P.

9 West 57th Street, Suite 4200

New York, New York, 10014

 

[Date]

 

Dear [    ],

 

Reference herein is made to the
Amended and Restated Limited Partnership Agreement of KKR Fund Holdings L.P.
(the “Partnership”) dated [    ], 2009 by and between KKR
Group Holdings L.P. and KKR Fund Holdings GP Limited, as general partners, and KKR Intermediate Partnership
L.P., as limited partner, as it may be amended from time to time (the “Agreement”).  By signing below, you acknowledge your
admission to the Partnership as a new or substitute Limited Partner pursuant to
Sections 2.08 and 7.09 and you agree to be bound by the terms and conditions in
the Agreement.

 

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  KKR
  GROUP HOLDINGS L.P., as General

  Partner of the Partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KKR
  Management LLC, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  Agreed
  and Accepted on the date first set forth above:

  
	
   

  
	
  [    ]Exhibit 10.3

 

AMENDED AND RESTATED 

PURCHASE AND SALE AGREEMENT

 

 

by and among

 

 

KKR & CO. L.P.,

 

 

KKR PRIVATE EQUITY
INVESTORS, L.P.,

 

 

KKR GROUP HOLDINGS L.P.

 

 

(solely for purposes of Section 1.1,
Section 1.2, Section 3 and Section 9.2),

 

 

KKR PEI ASSOCIATES, L.P.

 

 

(solely for purposes of Section 1.4),

 

 

KKR HOLDINGS L.P.

 

 

(solely for purposes of Section 4,
Section 5.4, Section 5.7, Section 5.10(b) and Section 9.10),

 

 

KKR MANAGEMENT HOLDINGS L.P.

 

 

(solely for purposes of Section 6)

 

 

and

 

 

KKR FUND HOLDINGS L.P.

 

 

(solely for purposes of Section 6)

 

 

Dated
as of July 19, 2009

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  THE
  PURCHASE AND SALE

  	
   

  	
  2

  
	
   

  	
  1.1

  	
  Purchase
  and Sale

  	
   

  	
  2

  
	
   

  	
  1.2

  	
  Assumption
  of Liabilities

  	
   

  	
  2

  
	
   

  	
  1.3

  	
  Satisfaction
  of Conditions; Effective Time

  	
   

  	
  3

  
	
   

  	
  1.4

  	
  Acquired
  Partnership GP Consent

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  REPRESENTATIONS
  AND WARRANTIES OF THE SELLER

  	
   

  	
  4

  
	
   

  	
  2.1

  	
  Organization

  	
   

  	
  4

  
	
   

  	
  2.2

  	
  Authority

  	
   

  	
  4

  
	
   

  	
  2.3

  	
  No
  Conflicts

  	
   

  	
  5

  
	
   

  	
  2.4

  	
  Consents
  and Approvals

  	
   

  	
  6

  
	
   

  	
  2.5

  	
  Ownership
  of Limited Partner Interests

  	
   

  	
  6

  
	
   

  	
  2.6

  	
  Brokers

  	
   

  	
  6

  
	
   

  	
  2.7

  	
  Other
  Agreements

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  REPRESENTATIONS
  AND WARRANTIES OF THE PURCHASER AND THE CONTROLLING PARTNERSHIP

  	
   

  	
  7

  
	
   

  	
  3.1

  	
  Organization

  	
   

  	
  7

  
	
   

  	
  3.2

  	
  Authority

  	
   

  	
  8

  
	
   

  	
  3.3

  	
  No
  Conflicts

  	
   

  	
  8

  
	
   

  	
  3.4

  	
  Consents
  and Approvals

  	
   

  	
  9

  
	
   

  	
  3.5

  	
  Absence
  of Material Adverse Effect

  	
   

  	
  9

  
	
   

  	
  3.6

  	
  Contributed
  Interests; Financial Statements

  	
   

  	
  9

  
	
   

  	
  3.7

  	
  No
  Undisclosed Liabilities

  	
   

  	
  10

  
	
   

  	
  3.8

  	
  Internal
  Controls

  	
   

  	
  10

  
	
   

  	
  3.9

  	
  Capitalization

  	
   

  	
  10

  
	
   

  	
  3.10

  	
  Investment
  Company

  	
   

  	
  11

  
	
   

  	
  3.11

  	
  Compliance
  with Law

  	
   

  	
  11

  
	
   

  	
  3.12

  	
  Permits

  	
   

  	
  12

  
	
   

  	
  3.13

  	
  Absence
  of Litigation

  	
   

  	
  12

  
	
   

  	
  3.14

  	
  Taxes

  	
   

  	
  12

  
	
   

  	
  3.15

  	
  Material
  Contracts

  	
   

  	
  12

  
	
   

  	
  3.16

  	
  Benefits

  	
   

  	
  13

  
	
   

  	
  3.17

  	
  Brokers

  	
   

  	
  13

  
	
   

  	
  3.18

  	
  Press
  Release

  	
   

  	
  14

  
	
   

  	
  3.19

  	
  No
  Registration Rights

  	
   

  	
  14

  
	
   

  	
  3.20

  	
  Other
  Agreements

  	
   

  	
  14

  
	
   

  	
  3.21

  	
  Intellectual
  Property

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  REPRESENTATIONS
  AND WARRANTIES OF HOLDINGS

  	
   

  	
  15

  
	
   

  	
  4.1

  	
  Organization

  	
   

  	
  15

  
	
   

  	
  4.2

  	
  Authority

  	
   

  	
  15

  
	
   

  	
  4.3

  	
  No
  Conflicts

  	
   

  	
  15

  
	
   

  	
  4.4

  	
  Consents
  and Approvals

  	
   

  	
  16

  

 

 

	
  5.

  	
  ADDITIONAL
  AGREEMENTS

  	
   

  	
  16

  
	
   

  	
  5.1

  	
  Consent
  Solicitation

  	
   

  	
  16

  
	
   

  	
  5.2

  	
  Reasonable
  Best Efforts

  	
   

  	
  18

  
	
   

  	
  5.3

  	
  No
  Solicitation

  	
   

  	
  18

  
	
   

  	
  5.4

  	
  Restructuring
  Transactions

  	
   

  	
  19

  
	
   

  	
  5.5

  	
  Insurance

  	
   

  	
  20

  
	
   

  	
  5.6

  	
  Modifications
  to Existing Agreements

  	
   

  	
  20

  
	
   

  	
  5.7

  	
  Execution
  of Additional Agreements

  	
   

  	
  21

  
	
   

  	
  5.8

  	
  Delivery
  of Letters

  	
   

  	
  21

  
	
   

  	
  5.9

  	
  Conduct
  of Business of the Controlling Partnership

  	
   

  	
  22

  
	
   

  	
  5.10

  	
  Publicity

  	
   

  	
  24

  
	
   

  	
  5.11

  	
  Anti-takeover
  Statutes

  	
   

  	
  24

  
	
   

  	
  5.12

  	
  Access
  to Information

  	
   

  	
  24

  
	
   

  	
  5.13

  	
  Litigation

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  INDEMNIFICATION

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  CONDITIONS
  PRECEDENT

  	
   

  	
  28

  
	
   

  	
  7.1

  	
  Mutual
  Conditions

  	
   

  	
  28

  
	
   

  	
  7.2

  	
  Conditions
  to Obligations of the Purchaser

  	
   

  	
  28

  
	
   

  	
  7.3

  	
  Conditions
  to Obligations of the Seller

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  TERMINATION

  	
   

  	
  30

  
	
   

  	
  8.1

  	
  Termination

  	
   

  	
  30

  
	
   

  	
  8.2

  	
  Effect
  of Termination

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  GENERAL
  PROVISIONS

  	
   

  	
  31

  
	
   

  	
  9.1

  	
  Nonsurvival
  of Representations, Warranties and Agreements

  	
   

  	
  31

  
	
   

  	
  9.2

  	
  Expenses

  	
   

  	
  31

  
	
   

  	
  9.3

  	
  Notices

  	
   

  	
  32

  
	
   

  	
  9.4

  	
  Interpretation

  	
   

  	
  33

  
	
   

  	
  9.5

  	
  Amendment;
  Waiver

  	
   

  	
  33

  
	
   

  	
  9.6

  	
  Counterparts

  	
   

  	
  34

  
	
   

  	
  9.7

  	
  Entire
  Agreement

  	
   

  	
  34

  
	
   

  	
  9.8

  	
  Severability

  	
   

  	
  34

  
	
   

  	
  9.9

  	
  Assignment;
  Third Party Beneficiaries

  	
   

  	
  34

  
	
   

  	
  9.10

  	
  Further
  Assurances

  	
   

  	
  34

  
	
   

  	
  9.11

  	
  Actions
  of the Seller

  	
   

  	
  35

  
	
   

  	
  9.12

  	
  Governing
  Law

  	
   

  	
  35

  
	
   

  	
  9.13

  	
  Submission
  to Jurisdiction

  	
   

  	
  35

  
	
   

  	
  9.14

  	
  Enforcement

  	
   

  	
  36

  
	
   

  	
  9.15

  	
  WAIVER
  OF JURY TRIAL

  	
   

  	
  36

  
	
   

  	
  9.16

  	
  Effect
  on Original Agreement

  	
   

  	
  36

  

 

ii

 

	
  Exhibits

  	
   

  
	
   

  	
   

  
	
  Exhibit A:

  	
  Press
  Release

  
	
  Exhibit B:

  	
  Transaction
  Structure

  
	
  Exhibit C:

  	
  Structuring
  Memorandum

  
	
  Exhibit D:

  	
  Form of
  Investment Agreement

  
	
  Exhibit E:

  	
  Form of
  Exchange Agreement

  
	
  Exhibit F:

  	
  Form of
  Confidentiality and Restrictive Covenant Agreement

  
	
  Exhibit G:

  	
  Form of
  Amended and Restated Limited Partnership Agreement of the Purchaser

  
	
  Exhibit H:

  	
  Form of
  Amended and Restated Limited Partnership Agreement of KKR Management Holdings
  L.P.

  
	
  Exhibit I:

  	
  Form of
  Amended and Restated Limited Partnership Agreement of KKR Fund Holdings L.P.

  
	
  Exhibit J:

  	
  Form of
  Amended and Restated Limited Liability Company Agreement of the Controlling
  Partnership GP

  
	
  Exhibit K:

  	
  Forms
  of Lock-Up Agreements

  
	
  Exhibit L:

  	
  Form of
  Tax Receivables Agreement

  
	
  Exhibit M:

  	
  Termination
  of Investment Agreement

  
	
  Exhibit N:

  	
  Amended
  and Restated Services Agreement

  
	
  Exhibit O:

  	
  Investment
  Policies and Procedures

  
	
  Exhibit P:

  	
  Amended
  and Restated Acquired Partnership LPA

  
	
  Exhibit Q:

  	
  Audit
  Committee Charter

  
	
  Exhibit R:

  	
  Amendment
  to Articles of Incorporation of Seller GP

  

 

iii

 

INDEX
OF DEFINED TERMS

 

	
  Acquired
  Partnership

  	
  1

  
	
  Acquired
  Partnership GP

  	
  1

  
	
  Acquired
  Partnership LPA

  	
  4

  
	
  Acquisition
  Proposal

  	
  19

  
	
  affiliate

  	
  33

  
	
  Agreement

  	
  1

  
	
  Board

  	
  1

  
	
  Code

  	
  13

  
	
  Confidential
  Controlling Partnership Disclosure Schedule

  	
  7

  
	
  Consent
  Solicitation Documents

  	
  16

  
	
  Consolidated
  Persons

  	
  7

  
	
  Contract

  	
  8

  
	
  Contributed
  Interests

  	
  9

  
	
  Controlling
  Partnership

  	
  1

  
	
  Controlling
  Partnership GP

  	
  1

  
	
  Controlling
  Partnership GP Agreement

  	
  21

  
	
  Effect

  	
  5

  
	
  Effective
  Time

  	
  3

  
	
  Exchange
  Act

  	
  33

  
	
  Exchange
  Agreement

  	
  21

  
	
  Fund
  Holdings

  	
  1

  
	
  Fund
  Holdings LPA

  	
  21

  
	
  GAAP

  	
  5

  
	
  Governmental
  Entity

  	
  6

  
	
  Group
  Partnerships

  	
  1

  
	
  Holdings

  	
  1

  
	
  HSR
  Act

  	
  6

  
	
  Independent
  Directors

  	
  2

  
	
  Interim
  Financial Statements

  	
  9

  
	
  Investment
  Agreement

  	
  21

  
	
  Investment
  Company Act

  	
  11

  
	
  KKR
  Funds

  	
  7

  
	
  KKR
  Group

  	
  9

  
	
  Liability

  	
  3

  
	
  Liens

  	
  2

  
	
  Limited
  Partner Interests

  	
  1

  
	
  Lock-Up
  Agreement

  	
  21

  
	
  Losses

  	
  25

  
	
  Management
  Holdings

  	
  1

  
	
  Management
  Holdings LPA

  	
  21

  
	
  Material
  Adverse Effect

  	
  5

  
	
  Material
  Contract

  	
  13

  
	
  Original
  Agreement

  	
  1

  
	
  Outside
  Date

  	
  30

  
	
  Participant

  	
  13

  
	
  Permits

  	
  12

  
	
  Permitted
  Liens

  	
  6

  
	
  person

  	
  33

  
	
  Press
  Release

  	
  14

  
	
  Proceedings

  	
  25

  
	
  Purchase
  and Sale

  	
  2

  
	
  Purchaser

  	
  1

  
	
  Purchaser
  Common Units

  	
  2

  
	
  Purchaser
  Enhanced Arrangement

  	
  13

  
	
  Purchaser
  GP

  	
  1

  
	
  Purchaser
  LPA

  	
  21

  
	
  Requisite
  Unitholder Consent

  	
  16

  
	
  Restructuring
  Transactions

  	
  19

  
	
  Satisfaction
  Date

  	
  3

  
	
  SEC

  	
  10

  
	
  Securities
  Act

  	
  10

  
	
  Seller

  	
  1

  
	
  Seller
  Common Units

  	
  2

  
	
  Seller
  GP

  	
  1

  
	
  Seller
  Limited Partnership Agreement

  	
  5

  
	
  Seller
  Recommendation

  	
  16

  
	
  Specified
  Information

  	
  17

  
	
  Tax
  Receivables Agreement

  	
  21

  
	
  Taxes

  	
  12

  

 

iv

 

AMENDED AND RESTATED PURCHASE AND SALE AGREEMENT

 

This AMENDED AND RESTATED PURCHASE AND SALE AGREEMENT, dated as of July
19, 2009 (as amended, supplemented or otherwise modified from time to time,
this “Agreement”), is entered into by and among (1) KKR & Co. L.P.,
a Delaware limited partnership (the “Controlling Partnership”), acting
through KKR Management LLC, a Delaware limited liability company (the “Controlling
Partnership GP”) in its capacity as the general partner of the Controlling
Partnership, (2) KKR Private Equity Investors, L.P., a Guernsey limited
partnership (the “Seller”), acting through KKR Guernsey GP Limited, a
Guernsey company limited by shares (the “Seller GP”) in its capacity as
the general partner of the Seller, (3) KKR PEI Associates, L.P., a Guernsey
limited partnership (the “Acquired Partnership GP”), acting in its
capacity as the general partner of KKR PEI Investments, L.P., a Guernsey
limited partnership (the “Acquired Partnership”), and acting through KKR
PEI GP Limited, a Guernsey company limited by shares in its capacity as general
partner of the Acquired Partnership GP (solely for purposes of Section 1.4), (4)
KKR Holdings L.P., a Cayman Islands exempted limited partnership (“Holdings”),
acting through KKR Holdings GP Limited in its capacity as general partner of
Holdings (solely for purposes of Section 4, Section 5.4, Section 5.7, Section 5.10(b)
and Section 9.10), (5) KKR Management Holdings L.P., a Delaware limited
partnership (“Management Holdings”), acting through KKR Management
Holdings Corp. in its capacity as the general partner of Management Holdings
(solely for purposes of Section 6), (6) KKR Fund Holdings L.P. (“Fund
Holdings”), a Cayman Islands exempted limited partnership, acting through
KKR Management LLC in its capacity as the general partner of the general
partner of Fund Holdings (solely for purposes of Section 6) (Management
Holdings and Fund Holdings are sometimes collectively referred to herein as the
“Group Partnerships”) and (7) KKR Group Holdings L.P. (the “Purchaser”),
a Cayman Islands exempted limited partnership, acting through KKR Group
Limited, a Cayman limited company (the “Purchaser GP”) in its capacity
as the general partner of the Purchaser (solely for purposes of Section 1.1, Section
1.2, Section 3 and Section 9.2).

 

WHEREAS, the parties hereto (other than the Purchaser) entered into a
Purchase and Sale Agreement, dated as of July 27, 2008 (the “Original
Agreement”);

 

WHEREAS, the parties hereto now desire to amend and restate the
Original Agreement in its entirety as provided in this Agreement;

 

WHEREAS, the Seller owns all of the limited partner interests (the “Limited
Partner Interests”) in the Acquired Partnership and certain other assets;

 

WHEREAS, the Seller desires to sell, and the Purchaser desires to
purchase, all of the Limited Partner Interests and all of the other assets of
the Seller upon the terms and subject to the conditions set forth in this
Agreement;

 

WHEREAS, the Controlling Partnership, the Purchaser, Holdings and Messrs.
Henry Kravis and George Roberts have each disclosed to the Seller and the board
of directors of the Seller GP (the “Board”) in accordance with the
organizational documents of the Seller GP and the Seller Limited Partnership
Agreement (as defined below) that each of them is an Interested Party (as such
term is defined in the Seller Limited Partnership Agreement) and 

 

 

accordingly this Agreement and the transactions
contemplated hereby are required, among other things, to be approved by a
majority of the directors of the Seller GP who are not affiliated with the
Controlling Partnership, the Purchaser, the Purchaser GP or Holdings (the “Independent
Directors”);

 

WHEREAS, the Board approved guidelines to govern the conduct of the
Independent Directors’ review of the transactions contemplated by this
Agreement, which guidelines, among other things, provided that the Independent
Directors have the authority to set up their own process for evaluating the
transactions contemplated by this Agreement, have the sole authority to select
their advisors, have the sole authority to negotiate for and on behalf of the
Seller the terms and conditions of this Agreement, and have the sole authority
to recommend to the Board that the Board approve or not approve the
transactions contemplated by this Agreement;

 

WHEREAS, the Independent Directors have unanimously recommended to the
Board that the Board approve this Agreement and the transactions contemplated
by this Agreement; and

 

WHEREAS, the Board, acting upon the unanimous recommendation of the
Independent Directors, has unanimously determined that this Agreement and the
transactions contemplated hereby are fair to and in the best interests of the
Seller and the holders of common units, including restricted depository units,
of the Seller (the “Seller Common Units”) and has approved the
execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby.

 

NOW, THEREFORE, in consideration of the mutual covenants,
representations, warranties and agreements contained herein, and intending to
be legally bound hereby, the parties agree as follows:

 

1.                                       THE PURCHASE AND SALE

 

1.1                                 Purchase and Sale. 
Upon the terms and subject to the conditions set forth in this
Agreement, at the Effective Time, the Seller shall sell, convey, assign and
transfer to the Purchaser, and the Purchaser shall purchase from the Seller,
the Limited Partner Interests and all of the other assets of the Seller, free
and clear of all liens, claims, charges, mortgages, pledges, security interests
or other encumbrances of any kind (“Liens”), other than Permitted Liens
(as defined below).  In consideration of
the sale, conveyance, assignment and transfer of the Limited Partner Interests
and all of the other assets of the Seller and upon the terms and subject to the
conditions set forth in this Agreement, at the Effective Time, the Purchaser
shall deliver to the Seller a number of common units representing limited
partner interests of the Purchaser (the “Purchaser Common Units”) equal to
the number of Seller Common Units then outstanding, as a result of which the
Seller will at the Effective Time own 100% of the outstanding Purchaser Common
Units.  The transactions contemplated by
this Section 1.1 are sometimes referred to herein as the “Purchase and Sale”.

 

1.2                                 Assumption of Liabilities. 
Upon the terms and subject to the conditions set forth in this
Agreement, at the Effective Time, the Purchaser shall assume and pay, perform

 

2

 

and discharge when due and indemnify the Seller and
the Seller GP and hold the Seller and the Seller GP harmless against all of the
Liabilities of the Seller and the Seller GP as of the Effective Time and all of
the Liabilities of the Seller and the Seller GP incurred at or arising after
the Effective Time. The Purchaser shall have the right to cause one or more of
its designated affiliates to assume and pay, perform and discharge when due the
Liabilities, but in no event shall the Purchaser be released from its
obligation in this Section 1.2 to indemnify the Seller and the Seller GP and
hold the Seller and the Seller GP harmless against such Liabilities.  For purposes of the foregoing, “Liability”
means any debt, liability or obligation (whether direct or indirect, known or
unknown, asserted or unasserted, absolute or contingent, present or future,
accrued or unaccrued, liquidated or unliquidated, or due or to become due, and
whether in contract, tort, strict liability or otherwise), including any
off-balance sheet liabilities and all liabilities relating to or incurred in
connection with any suit, claim, action, proceeding, arbitration or
investigation arising out of or related to this Agreement or the transactions
contemplated by this Agreement.

 

1.3                                 Satisfaction of Conditions; Effective
Time.

 

(a)                                  All of the conditions set forth in Section 7 of this
Agreement shall be deemed to be irrevocably satisfied or waived for all
purposes of this Agreement on the first date on which all of the conditions set
forth in Section 7 of this Agreement have been satisfied or lawfully waived
(such date, the “Satisfaction Date”) (it being understood and agreed
that for purposes of determining the Satisfaction Date, the conditions set
forth in Section 7.2(a)-(c) and Section 7.3(a)-(c) shall be deemed satisfied or
waived on the date on which all of the other conditions set forth in Section 7
of this Agreement have been satisfied or waived if the conditions set forth in Section
7.2(a)-(c) and Section 7.3(a)-(c) are waived or capable of being satisfied (and
in the case of Section 7.2(b) and Section 7.3(b) have been satisfied) as of
such date, or if not capable of being satisfied as of such date, on the first
date after such date on which the conditions set forth in Section 7.2(a)-(c) and
Section 7.3(a)-(c) are waived or capable of being satisfied (and in the case of
Section 7.2(b) and Section 7.3(b) have been satisfied)); provided that
in no event shall the Satisfaction Date be prior to August 14, 2009 unless the
Controlling Partnership has consented to an earlier Satisfaction Date.

 

(b)                                 Each party agrees to deliver, or cause to be delivered, any
documents or instruments that are required to be delivered in order to satisfy
the conditions set forth in Section 7.2 and Section 7.3 on the date that would
constitute the Satisfaction Date assuming that such documents and instruments
have been delivered on such date, and the delivery of those documents shall
occur at the offices of Simpson Thacher & Bartlett LLP, 425 Lexington
Avenue, New York, New York 10017, or such other place as the parties shall
mutually agree.

 

(c)                                  The transfer of assets contemplated pursuant to Section 1.1
hereof, and the assumption of liabilities contemplated pursuant to Section 1.2
hereof, shall not be effected, or deemed to be effected, until the Effective
Time.  For purposes of this Agreement,
the “Effective Time” shall mean 12:01 am Eastern Time on October 1, 2009
or, in the event the Satisfaction Date has not occurred on or prior to October 1,
2009, 12:01 am Eastern Time on the first day of the fiscal quarter of the
Controlling Partnership immediately succeeding the fiscal quarter in which the
Satisfaction Date occurs; provided  however without the consent of
the Seller the Effective Time shall not occur if (i) the Controlling
Partnership or Holdings has not performed in 

 

3

 

all material respects all obligations
required to be performed by it under Section 5.4, Section 5.5, Section 5.6, Section
5.7 and Section 5.9 during the period from the Satisfaction Date to the
Effective Time, (ii) the Restructuring Transactions shall not have been
implemented in a manner consistent with the steps set forth in the structure
memorandum set forth as Exhibit C hereto, except for deviations thereto
which would not reasonably be expected to have an adverse impact in more than
an insignificant respect on the Seller, the Controlling Partnership or the
holders of the Seller Common Units or deviations consented to by the Seller,
which consent shall not be unreasonably withheld or delayed or (iii) the Seller
shall not have received the certificate required to be delivered pursuant to Section
5.4(d).  For the avoidance of doubt,
notwithstanding the occurrence of the Satisfaction Date, the beneficial ownership
of the assets and liabilities of the Seller and the Consolidated Persons will
be retained by the Seller and the Consolidated Persons, respectively, until the
Effective Time and neither the Seller nor the Consolidated Persons shall begin
to share in or receive any of the assets, liabilities, profits, losses or
distributions of each other until the Effective Time.

 

1.4                                 Acquired Partnership GP Consent. 
In accordance with the requirements of Clause 9.2 of the limited
partnership agreement of the Acquired Partnership (as amended, supplemented or
otherwise modified from time to time, the “Acquired Partnership LPA”),
the Acquired Partnership GP, acting as general partner of the Acquired
Partnership, hereby consents to the transfer of the Limited Partner Interests
upon the terms and subject to the conditions set forth in this Agreement and
agrees, subject to the Purchaser becoming a party to the Acquired Partnership
LPA and assuming the Seller’s obligations thereunder, to register the Purchaser
as the sole limited partner of the Acquired Partnership in the books of the
Acquired Partnership.

 

2.                                       REPRESENTATIONS AND WARRANTIES OF THE
SELLER.

 

The Seller GP acting as the general partner of the Seller hereby
represents and warrants to the Controlling Partnership as follows:

 

2.1                                 Organization. 
The Seller is a limited partnership duly organized, validly existing and
in good standing under the laws of the Island of Guernsey.

 

2.2                                 Authority.  The Seller
(acting through the Seller GP) has the requisite power and authority to execute
and deliver this Agreement and to perform its obligations hereunder and
consummate the transactions contemplated hereby.  The execution, delivery and performance of
this Agreement and the consummation of the transactions contemplated hereby
have been duly authorized by all necessary action on the part of the Seller and
the Seller GP and, except as contemplated by Section 2.4, no other action is
necessary on the part of the Seller or the Seller GP for the execution,
delivery and performance by the Seller (acting through the Seller GP) of this
Agreement and the consummation of the transactions contemplated hereby.  This Agreement has been duly executed and
delivered by the Seller GP acting as the general partner of the Seller and,
assuming due authorization, execution and delivery by the Controlling
Partnership, the Purchaser, Holdings, the Group Partnerships and the Acquired
Partnership GP, constitutes a valid and binding obligation of the Seller
enforceable against the Seller in accordance with its terms, except to the
extent that enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or other laws relating to or affecting creditors’
rights generally and by general equity principles.  The Board, acting upon the unanimous

 

4

 

recommendation of the Independent Directors, has
unanimously determined that this Agreement and the transactions contemplated
hereby are fair to and in the best interests of the Seller and the holders of
the Seller Common Units and has approved the execution, delivery and
performance of this Agreement and the consummation of the transactions
contemplated hereby.

 

2.3                                 No Conflicts.

 

(a)                                  Neither the execution and delivery of this Agreement by the
Seller nor the consummation by the Seller of the transactions contemplated
hereby (including the Restructuring Transactions and including the execution
and performance of each of the agreements referenced in Section 3.20), nor
compliance by the Seller with any of the terms or provisions hereof, will (i) violate
any provision of the amended and restated limited partnership agreement of the
Seller, dated as of May 2, 2007 (as amended, supplemented or otherwise modified
from time to time, the “Seller Limited Partnership Agreement”) and (ii) assuming
that the consents, approvals and filings referred to in Section 2.4 are duly
obtained or made and except as would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect (as defined below)
on the Acquired Partnership, violate any statute, code, ordinance, rule or
regulation applicable to the Seller.

 

(b)                                 For purposes of this Agreement, “Material Adverse Effect”
means, with respect to any person (other than the holders of the Seller Common
Units), a material adverse effect on the business, results of operations or
financial condition of such person and any person (other than the Acquired
Partnership and its subsidiaries in the case of the Purchaser) whose financial
results are consolidated with such person (including, in the case of the
Purchaser, the KKR Funds (as defined below)), taken as a whole, and, with
respect to the holders of the Seller Common Units, a material adverse effect on
the overall economic value to be received as of the date of this Agreement by
the Seller as a result of the Purchase and Sale, taken as a whole (it being
understood that for purposes of determining whether there has been a Material
Adverse Effect with respect to the holders of the Seller Common Units, any
Effect that does not generally affect holders of a material proportion of
Seller Common Units will be disregarded); provided, however, that
in determining whether a Material Adverse Effect has occurred or would
reasonably be expected to occur, there shall be excluded any effect, event,
development, occurrence or change (each, an “Effect”) on the referenced
person to the extent the cause of such Effect is (i) changes in general
economic or political conditions, (ii) changes in the financial or securities
markets generally, (iii) entry into or announcement of the execution of this
Agreement, (iv) the commencement, occurrence or continuation of any war, armed
hostilities or acts of terrorism, (v) general changes or developments in the
industries in which the referenced person operates, (vi) changes in law, rules,
regulations, accounting principles generally accepted in the United States of
America (“GAAP”) or interpretations thereof and (vii) with respect to
the Acquired Partnership, any actions or omissions on the part of the Seller
that are directed by the Controlling Partnership or any of its affiliates
including the Seller GP or the Seller, acting through the Seller GP, except for
such actions or omissions of the Seller GP or the Seller, acting through the
Seller GP, that are due to the taking of any action, or failure to take any
action, by the Independent Directors (in their capacity as such); except, in
the cases of clauses (ii), (v) and (vi) to the extent that the referenced
person, taken as a whole, together with any person (other than the Acquired
Partnership and its subsidiaries in the case of the Purchaser) whose financial
results are consolidated with such person, is materially disproportionately
affected thereby as 

 

5

 

compared with other participants in the
applicable industry or industries in which any such persons operate.  The parties hereto acknowledge and agree that
the exclusions set forth in clauses (i) through (vii) above shall not include, and
in determining whether a Material Adverse Effect has occurred or would
reasonably be expected to occur there may be taken into account, any Effect the
cause of which is any enacted change in United States Tax law, rules,
regulations or interpretations thereof, including, for the avoidance of doubt,
the enactment of the Levin-Rangel bill (H.R. 1935), the Welch bill (H.R. 2762)
and/or any Tax law, statute, rule, ordinance and/or regulation enacted by any
Governmental Entity (as defined below) in the United States having a similar
effect.

 

2.4                                 Consents and Approvals. 
No order, permission, consent, approval, license, authorization,
registration, or validation of, or filing with, or notice to, or exemption by,
any court, administrative agency or commission or other governmental authority
or instrumentality, legislative body or self-regulatory organization (each a “Governmental
Entity”) by the Seller is necessary in connection with the execution,
delivery and performance of this Agreement by the Seller and the consummation
by the Seller of the transactions contemplated hereby, except (i) for the
giving of written notice by the Seller GP to the Guernsey Financial Services
Commission, (ii) for the giving of notice by the Seller to the Authority for
the Financial Markets in The Netherlands and/or Euronext Amsterdam by NYSE
Euronext, the regulated market of Euronext Amsterdam N.V., (iii) filings
necessary to comply with the applicable requirements of the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended (the “HSR Act”) and (iv) for
compliance with Section 3.01 of the Authorised Closed-Ended Investment Schemes Rules
2008 or for the granting by the Guernsey Financial Services Commission of a
modification to Rule 3.01(12) of the Authorised Closed-Ended Investment Schemes
Rules 2008 to the effect that the Purchase and Sale satisfies the criteria for
independent valuation if the value of the property being sold is subject to an
independent fairness opinion from a person qualified to provide such an
opinion.

 

2.5                                 Ownership of Limited Partner Interests. 
The Seller owns beneficially and of record the Limited Partner Interests
free and clear of any Liens other than Liens for Taxes (as defined below) and
other governmental charges and assessments not yet due and payable or that are
being contested in good faith and for which adequate accruals or reserves have
been established (“Permitted Liens”). 
The Limited Partner Interests to be sold pursuant to Section 1.1 of this
Agreement consist of Class A limited partner interests, Class B limited partner
interests, Class C limited partner interests and Class D limited partner
interests.   There are no voting trusts,
proxies, powers of attorney or other agreements or understandings with respect
to the voting of any of the Limited Partner Interests.

 

2.6                                 Brokers.  The Seller
has not incurred any obligation or liability, contingent or otherwise, for
brokers’ or finders’ fees or commissions in connection with the transactions
contemplated by this Agreement for which the Controlling Partnership, the
Purchaser or the Acquired Partnership is or will become liable, except for the
fees of Lazard Frères & Co. LLC and Citigroup Global Markets Limited in
connection with the transactions contemplated by this Agreement as advisors to
the Seller and the Independent Directors the amount of which have been
disclosed to the Controlling Partnership and will be borne by the Purchaser in
accordance with Section 9.2 in the event the Effective Time occurs and
otherwise will be borne by the Seller.

 

6

 

2.7                                 Other Agreements. 
Each of the Investment Agreement, the Exchange Agreement and the Tax
Receivables Agreement will be duly authorized, executed and delivered by the
Seller, and, assuming due authorization, execution and delivery by the other
parties thereto, will be a valid and binding obligation of the Seller
enforceable against the Seller in accordance with its terms, except to the
extent that enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or other laws relating to or affecting creditors’
rights generally and by general equity principles.

 

3.                                       REPRESENTATIONS AND WARRANTIES OF THE
PURCHASER AND THE CONTROLLING PARTNERSHIP

 

Except as otherwise specified in a correspondingly
enumerated section of the disclosure schedule delivered to the Seller by the
Controlling Partnership concurrently with the execution of this Agreement (the “Confidential
Controlling Partnership Disclosure Schedule”) (it being understood that any
matter set forth under any item under any section or subsection of the
Confidential Controlling Partnership Disclosure Schedule shall be deemed
disclosure with respect to any other section or subsection to the extent such
matter is disclosed in such a way as to make its relevance to the information
called for by such other section or subsection reasonably apparent), the
Controlling Partnership GP acting as the general partner of the Controlling
Partnership and the Purchaser GP acting as the general partner of the Purchaser
hereby represents and warrants to the Seller as follows:

 

3.1                                 Organization.

 

(a)                                  Each of the Purchaser, the Controlling Partnership, the
Consolidated Persons (as defined below) and each of the KKR Funds (as defined
below) (i) is duly organized, validly existing and in good standing (to
the extent such a concept exists in the relevant jurisdiction) in the
jurisdiction in which it is organized, (ii) has the power and authority to
own or lease all of its properties and assets and to carry on its business as
it is now being conducted, and (iii) is licensed or qualified to do
business in each jurisdiction in which the nature of the business conducted by
it or the character or location of the properties or assets owned or leased by
it makes such licensing or qualification necessary, except, in the cases of
clauses (ii) and (iii) where the failure to have such power and
authority, or to be so licensed or qualified would not reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect on the
Purchaser (after giving effect to the Restructuring Transactions, but excluding
the Acquired Partnership and its subsidiaries).

 

(b)                                 For purposes of this Agreement, (i) “Consolidated
Persons” means the Purchaser and each of the persons whose financial
results will be consolidated with the Purchaser in accordance with GAAP upon
the consummation of the Restructuring Transactions (as defined below) other
than (A) the KKR Funds and (B) the Acquired Partnership and its
subsidiaries and (ii) “KKR Funds” means investment funds or
investment vehicles that are from time-to-time managed, sponsored or otherwise
advised by one or more members of the KKR Group whose financial results will be
required to be consolidated with the Purchaser in accordance with GAAP upon the
consummation of the Restructuring Transactions, other than the Acquired
Partnership and its subsidiaries.

 

7

 

3.2                                 Authority.  The
Controlling Partnership (acting through the Controlling Partnership GP), the
Purchaser (acting through the Purchaser GP) and the Group Partnerships have the
requisite power and authority to execute and deliver this Agreement, to perform
their obligations hereunder and to consummate the transactions contemplated
hereby (including the Restructuring Transactions).  The execution, delivery and performance of
this Agreement have been and the consummation of the transactions contemplated
hereby (including the Restructuring Transactions) have been, or will be, duly
authorized by all necessary action on the part of the Controlling Partnership,
the Purchaser, the Purchaser GP and the Group Partnerships and no other action
will be necessary on the part of the Controlling Partnership, the Purchaser,
the Controlling Partnership GP and the Group Partnerships for the execution,
delivery and performance by the Controlling Partnership (acting through the
Controlling Partnership GP), the Purchaser and the Group Partnerships of this
Agreement and the consummation of the transactions contemplated hereby
(including the Restructuring Transactions). 
This Agreement has been duly executed and delivered by the Controlling
Partnership, the Purchaser and the Group Partnerships and, assuming due
authorization, execution and delivery by the Seller, Holdings and the Acquired
Partnership GP, constitutes a valid and binding obligation of the Controlling
Partnership, the Purchaser and the Group Partnerships, enforceable against the
Controlling Partnership, the Purchaser and the Group Partnerships in accordance
with its terms, except to the extent that enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or other laws relating to or
affecting creditors’ rights generally and by general equity principles.

 

3.3                                 No Conflicts. 
Neither the execution and delivery of this Agreement by the Controlling
Partnership, the Purchaser and the Group Partnerships nor the consummation by
the Controlling Partnership, the Purchaser and the Group Partnerships of the
transactions contemplated hereby (including the Restructuring Transactions and
including the execution and performance of each of the agreements referenced in
Section 3.20), nor compliance by the Controlling Partnership, the
Purchaser or the Group Partnerships with any of the terms or provisions hereof,
will (i) violate any provision of the certificate of formation or limited
partnership agreement of the Controlling Partnership or any similar
organizational documents of any of the Consolidated Persons or any of the KKR
Funds or of the Purchaser GP and (ii) assuming that the consents,
approvals and filings referred to in Section 3.4 are duly obtained or made
and except as would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect on the Purchaser (after giving effect to
the Restructuring Transactions, but excluding the Acquired Partnership and its
subsidiaries), (x) violate any statute, code, ordinance, rule, regulation,
judgment, order, award, decree or injunction applicable to the Controlling
Partnership, the Purchaser GP, any of the Consolidated Persons or any of the
KKR Funds or any of their respective properties or assets, or (y) violate,
conflict with, result in a breach of any provision of or the loss of any
benefit under, or require redemption or repurchase or otherwise require the purchase
or sale of any securities, constitute a default (or an event which, with notice
or lapse of time, or both, would constitute a default) under, result in the
termination of or a right of termination or cancellation under, accelerate the
performance required by, or result in the creation of any Lien upon any of the
properties or assets of the Controlling Partnership, the Purchaser GP, any of
the Consolidated Persons or any of the KKR Funds under, any of the terms,
conditions or provisions of any note, bond, mortgage, indenture, deed of trust,
license, lease, agreement or other instrument or obligation (each, a “Contract”)
to which the Controlling Partnership, the Purchaser GP or any of the
Consolidated Persons is a 

 

8

 

party, or by which any of
them or any of their respective properties or assets may be bound or affected.

 

3.4                                 Consents and Approvals. 
No order, permission, consent, approval, license, authorization,
registration, or validation of, or filing with, or notice to, or exemption by,
any Governmental Entity by the Controlling Partnership, the Purchaser or the
Group Partnerships is necessary in connection with the execution, delivery and
performance of this Agreement by the Controlling Partnership, the Purchaser or
the Group Partnerships and the consummation by the Controlling Partnership, the
Purchaser or the Group Partnerships of the transactions contemplated hereby
(including the Restructuring Transactions and including the execution of the
agreements referenced in Section 3.20), except filings necessary to comply
with the applicable requirements of the HSR Act.

 

3.5                                 Absence of Material Adverse Effect. 
Since March 31, 2009, there has been no Effect that, individually
or in the aggregate, has had or would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect on the Purchaser
(after giving effect to the Restructuring Transactions, but excluding the
Acquired Partnership and its subsidiaries).

 

3.6                                 Contributed Interests; Financial
Statements.

 

(a)                                  Except as set forth in Section 3.6(a) of the
Confidential Controlling Partnership Disclosure Schedule, upon consummation of
the Restructuring Transactions, the Group Partnerships will own, directly and
indirectly, all of the controlling and economic interests in the group of
entities (the “KKR Group”) whose financial position, results of
operations and cash flows are reflected in the historical condensed combined
financial statements of the KKR Group as of December 31, 2008 and for the
year then ended and as of March 31, 2009 and for the three months then
ended (the “Interim Financial Statements”). Such interests (other than
those included in the exceptions set forth in the preceding sentence) are
sometimes referred to herein as the “Contributed Interests.”

 

(b)                                 Complete, true and correct copies of the Interim Financial
Statements and the historical combined financial statements of the KKR Group as
of December 31, 2007 and for the year then ended and as of December 31,
2008 and for the year then ended are attached hereto as Section 3.6(b) of
the Confidential Controlling Partnership Disclosure Schedule. Such financial
statements (including, in each case, any notes thereto) comply in all material
respects with the published rules and regulations of the SEC in effect as
of the date of this Agreement and have been prepared in accordance with GAAP
applied on a consistent basis throughout the periods involved (except as may be
indicated in the notes thereto).  The
combined financial statements of the KKR Group as of December 31, 2008 and
for the year then ended were audited by Deloitte & Touche LLP and
fairly present, in all material respects, the combined financial condition,
results of operations, changes in equity and cash flows of the KKR Group as of December 31,
2008 and for the year then ended. The Interim Financial Statements were
prepared in a manner that is consistent with the preparation of the annual
financial statements and fairly present in all material respects, the combined
financial position, results of operations, changes in equity and cash flows of
the KKR Group as of the dates and for the periods presented therein (subject to
normal year-end audit adjustments which are not expected to be, individually or
in the aggregate, 

 

9

 

materially
adverse to the KKR Group taken as a whole and the absence of certain footnote
disclosures not required with respect to interim dates).

 

(c)                                  Deloitte & Touche LLP is, and during the periods
covered by the KKR Group’s financial statements referred to in Section 3.6(b),
was an independent registered public accounting firm as required under the
United States Securities Act of 1933, as amended (the “Securities Act”),
and the published rules and regulations thereunder adopted by the United
States Securities and Exchange Commission (the “SEC”) and the Public
Company Accounting Oversight Board (United States).

 

3.7                                 No Undisclosed Liabilities.

 

(a)                                  Except (i) for those liabilities that are reflected or
reserved against on the combined statement of financial condition included in
the Interim Financial Statements or described in the footnotes to the Interim
Financial Statements, (ii) for liabilities incurred in the ordinary course
of business since March 31, 2009 and (iii) for liabilities incurred
in connection with this Agreement and the transactions contemplated hereby,
including the Restructuring Transactions, the KKR Group has not incurred any
material liabilities or obligations that would be required to be reflected or
reserved against on a combined statement of financial condition of the KKR
Group prepared in accordance with GAAP.

 

(b)                                 The Controlling Partnership, the Purchaser, the Purchaser GP
and KKR Management Holdings Corp. (i) have been formed solely for the
purpose of engaging in the transactions contemplated hereby (including the
Restructuring Transactions) and (ii) have engaged and, prior to the
Satisfaction Date, will have engaged in no other business activities, and have
incurred and, prior to the Satisfaction Date, will have incurred no liabilities
or obligations other than in furtherance of the transactions contemplated
hereby (including the Restructuring Transactions).

 

3.8                                 Internal Controls. 
The Controlling Partnership, each of the Consolidated Persons and each
of the KKR Funds have established and maintain a system of internal accounting
controls sufficient to provide reasonable assurance that (i) transactions
are executed in accordance with management’s general or specific authorizations;
(ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP and to maintain asset
accountability; (iii) access to assets is permitted only in accordance
with management’s general or specific authorization; and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.  Since December 31, 2008, there has been
no change in the KKR Group’s internal controls over financial reporting that
has materially adversely affected, or is reasonably likely to materially
adversely affect, the KKR Group’s internal controls over financial reporting.

 

3.9                                 Capitalization.

 

(a)                                  The Purchaser Common Units and the limited partnership
interests evidenced thereby to be issued to the Seller pursuant to Section 1.1
will be duly authorized prior to issuance and, when issued pursuant to the
terms and conditions of this Agreement, will be 

 

10

 

validly
issued and fully paid and free and clear of any Liens.  Except for (i) Purchaser Common Units
issuable to the Seller pursuant to Section 1.1 or in connection with an
exchange by Holdings or its designees of partner interests in the Group
Partnerships in accordance with the Exchange Agreement (as defined below), and (ii) non-economic
general partner interests in the Purchaser, there are no (A) outstanding
equity interests in the Purchaser, (B) outstanding securities or other instruments
or rights of any person convertible or exchangeable for equity interests in the
Purchaser or (C) options or other rights to acquire from the Purchaser any
equity interests in the Purchaser or obligations of the Purchaser to issue any
equity interests in the Purchaser.

 

(b)                                 All of the issued shares of capital stock, partnership
interests, member interests or other equity interests of each other
Consolidated Person have been or will be, duly authorized and validly issued
and fully paid (in the case of any other Consolidated Persons that are
organized as limited liability companies, limited partnerships or other
business entities, to the extent required under the applicable limited
liability company, limited partnership or other organizational agreement) and
non-assessable (except in the case of interests held by general partners or
similar entities under the applicable laws of other jurisdictions, in the case
of any Consolidated Persons that are organized as limited liability companies,
as such non-assessability may be affected by Section 18-303, Section 18-607
or Section 18-804 of the Delaware Limited Liability Company Act or similar
provisions under the applicable laws of other jurisdictions or the applicable
limited liability company agreement and, in the case of any Consolidated
Persons that are organized as limited partnerships, as such non-assessability
may be affected by Section 17-303, Section 17-607 or Section 17-804
of the Delaware Revised Uniform Limited Partnership Act or similar provisions under
the applicable laws of other jurisdictions or the applicable limited
partnership agreement) and are owned or will be owned, as the case may be,
directly or indirectly by the Purchaser or Holdings, free and clear of any
Liens other than Permitted Liens.

 

(c)                                  Other than as referred to in Section 3.9(a), there are
no preemptive rights or other rights to subscribe for, to purchase, to exchange
any securities or interests for or to convert any securities or interests into,
any partnership interests or partnership units or membership interests or
shares of capital stock of the Controlling Partnership or any of the
Consolidated Persons pursuant to any partnership or limited liability company
agreement, any articles or certificates of incorporation or other governing
documents or any agreement or other instrument to which the Controlling
Partnership or such Consolidated Person is a party or by which the Controlling
Partnership or such Consolidated Person may, directly or indirectly, be bound,
and there are no outstanding options or warrants to purchase any securities of
the Controlling Partnership or any of the Consolidated Persons.

 

3.10                           Investment Company. 
Neither the Controlling Partnership nor any of the Consolidated Persons
is, nor on the Satisfaction Date, after giving effect to the transactions
contemplated hereby (including the Restructuring Transactions), will be
required to register as an investment company under the United States
Investment Company Act of 1940, as amended (the “Investment Company Act”).

 

3.11                           Compliance with Law.  The businesses
of the Controlling Partnership, the Consolidated Persons and the KKR Funds are
being, and since January 1, 2007, have been, conducted in compliance in
all material respects with any law, statute, rule, ordinance or 

 

11

 

regulation
of any Governmental Entity.  Since January 1,
2007, neither the Controlling Partnership nor any of the Consolidated Persons
nor any of the KKR Funds has received any written communication or notice from
any Governmental Entity that alleges that the Controlling Partnership or a
Consolidated Person or a KKR Fund is not in compliance in any material respect
with any law, statute, rule, ordinance or regulation of any Governmental Entity
and that is reasonably likely to give rise to any material liability on the
part of the Controlling Partnership, any of the Consolidated Persons or any of
the KKR Funds.

 

3.12                           Permits.  The
Controlling Partnership, the Consolidated Persons and the KKR Funds have
received all material permits, certificates, licenses and authorizations (the “Permits”)
to own or hold under lease and operate their respective assets and to conduct
the business of the Controlling Partnership, the Consolidated Persons and the
KKR Funds as currently conducted.  All
such Permits are validly held by the Controlling Partnership, the Consolidated
Persons and the KKR Funds, as the case may be, and each of the Controlling
Partnership, the Consolidated Persons and the KKR Funds has complied in all
material respects with all terms and conditions of any such Permit.

 

3.13                           Absence of Litigation. 
There is no suit, claim, action, proceeding, arbitration or
investigation pending or, to the knowledge of the Controlling Partnership,
threatened against the Controlling Partnership, any of the Consolidated Persons
or any KKR Fund that would reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect on the Purchaser (after giving effect
to the Restructuring Transactions, but excluding the Acquired Partnership and
its subsidiaries).  Neither the
Controlling Partnership nor any of the Consolidated Persons nor any KKR Fund is
subject to or bound by any outstanding order, injunction, judgment, award or
decree that would reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect on the Purchaser (after giving effect to
the Restructuring Transactions, but excluding the Acquired Partnership and its
subsidiaries).

 

3.14                           Taxes.  Each of the
Controlling Partnership, the Consolidated Persons and, to the knowledge of the
Controlling Partnership, the KKR Funds has (i) duly and timely filed
(including pursuant to applicable extensions) all material returns, reports,
information returns or other documents required to be filed with any taxing
authority with respect to any taxes, charges, levies, penalties, interest, fees
or other assessments imposed by any United States federal, state, local or
foreign taxing authority (“Taxes”) and such returns, reports and other
documents are true and correct and (ii) paid in full all material Taxes
due or claimed to be due or owing from such entity, other than any such amounts
being contested in good faith and by appropriate proceedings and for which
adequate reserves have been provided in accordance with GAAP.  There are no material Tax audits or
investigations of which the Controlling Partnership, any of the Consolidated
Persons or, to the knowledge of the Controlling Partnership, any of the KKR
Funds has notice, nor does the Controlling Partnership have notice of any
proposed additional material Tax assessments against the Controlling
Partnership, any of the Consolidated Persons or, to the knowledge of the
Controlling Partnership, any of the KKR Funds.

 

3.15                           Material Contracts. 
As of the date of this Agreement, except for this Agreement, neither the
Controlling Partnership nor any of the Consolidated Persons nor any KKR Fund is
a party to or bound by any Contract that is a “material contract” (as such term
is defined in Item 601(b)(10) of Regulation S-K but without giving effect
to the provisions of 

 

12

 

clause (i) thereof
relating to the exclusion of contracts entered into more than two years before
the filing of a registration statement) of the Controlling Partnership (after
giving effect to the Restructuring Transactions, but excluding the Acquired
Partnership and its subsidiaries) (each such Contract, a “Material Contract”).  As of the date of this Agreement, each of the
Material Contracts is valid and binding on the Controlling Partnership or the
Consolidated Person or the KKR Fund party thereto and is in full force and
effect in all material respects.  There
is no material breach or default under any Material Contract or any material
management agreement by the Controlling Partnership or the Consolidated Person
or the KKR Fund party thereto or, to the knowledge of the Controlling
Partnership, any other party thereto and no event has occurred that with or
without the lapse of time or the giving of notice or both would constitute a
material breach or default thereunder by the Controlling Partnership, the
Consolidated Person, the KKR Fund party thereto or, to the knowledge of the
Controlling Partnership, any other party thereto.  None of the Controlling Partnership or any of
the applicable Consolidated Persons or KKR Funds has received prior to the date
of this Agreement any notice of the intention of any party to terminate any
Material Contract or any material management agreement.  Complete, true and correct copies of all
Material Contracts, together with all existing modifications and amendments
thereto, have been made available to the Seller prior to the date of this
Agreement.

 

3.16                           Benefits.  No condition
exists that would subject the Controlling Partnership or any of the
Consolidated Persons, either directly
or by reason of their affiliation with any member of their “controlled
group” (defined as any organization which is a member of a controlled group of
organizations within the meaning of Sections 414(b), (c), (m) or (o) of
the Internal Revenue Code of 1986, as amended (the “Code”)), to any
material Tax, fine, lien, penalty or other liability imposed by the Employee
Retirement Income Security Act of 1974, as amended, the Code or other
applicable laws, rules and regulations. 
There are no plans, programs, policies, agreements, arrangements or
understandings of the Controlling Partnership or any of the Consolidated
Persons pursuant to the express terms of which any partner, member, director,
officer, employee or consultant of the Controlling Partnership or any of the
Consolidated Persons (each, a “Participant”) would reasonably be
expected to become entitled to (a) any additional compensation, enhanced
severance or other benefits or grant of Purchaser Common Units or awards
related thereto or any acceleration of the time of payment or vesting of any
compensation, severance or other benefits or any funding of any compensation or
benefits by the Controlling Partnership or any of the Consolidated Persons, in
each case, as a result of the Restructuring Transactions or (b) any other
compensation or benefits from the Controlling Partnership or any of the
Consolidated Persons that is related to, contingent upon, or the value of which
would be calculated on the basis of the Purchaser Common Units (each such plan,
program, policy, agreement, arrangement or understanding described in the
foregoing clause (a) or (b), a “Purchaser Enhanced Arrangement”).  Neither the Controlling Partnership nor any
of the Consolidated Persons (other than Holdings or an affiliate thereof (other
than the Controlling Partnership or any of the Consolidated Persons)) is a
party to any written employment, retention bonus, change in control, severance
or termination agreement with any Participant who is entitled to compensation
from the Controlling Partnership or any of the Consolidated Persons in excess
of $1,000,000 per year.

 

3.17                           Brokers.  Neither the
Controlling Partnership, the Purchaser, the Purchaser GP, nor any Consolidated
Person has incurred any obligation or liability, contingent or 

 

13

 

otherwise, for brokers’
or finders’ fees or commissions in connection with the transactions
contemplated by this Agreement for which the Seller is or will become liable.

 

3.18                           Press Release. 
(a)        The press release to
be issued on announcement of the execution of this Agreement, including any
attachments thereto, is attached hereto as Exhibit A (the “Press
Release”).  The information set forth
in the Press Release is true and correct in all material respects and is not
misleading in any material respect.  The
Press Release contains, in summary form, all the information about the Purchaser
(after giving effect to the Restructuring Transactions), the terms and
conditions of the Purchase and Sale, the Restructuring Transactions, the
Investment Agreement and the consideration to be received by the Seller
pursuant hereto, including information necessary for assessing the value of
such consideration, that is required to be made publicly available as of the
date of this Agreement pursuant to the Dutch Financial Markets Supervision Act
or the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended.  Without limiting the provisions set forth in
the preceding sentence, the parties acknowledge that additional information
with respect to the Purchaser, the terms and conditions of the Purchase and
Sale, the Restructuring Transaction, the Investment Agreement and the consideration
to be received by the Seller, including pro forma financial information, will
be included in the Consent Solicitation Documents.

 

(b)                                 The ranges of economic net income, assets under management
and fee-related earnings of the total reportable segments of the KKR Group and
the range of net asset value of the Seller included in the Press Release as of
and for the three months ended June 30, 2009 are the Controlling
Partnership’s good faith estimates of such ranges.  The economic net income of the total reportable
segments of the KKR Group shall be reported by the Controlling Partnership in
the footnotes to its financial statements as at June 30, 2009 within the
range included in the Press Release.

 

3.19                           No Registration Rights. 
There are no Contracts between the Controlling Partnership or any
Consolidated Person and any person granting such a person the right to require
the Controlling Partnership or a Consolidated Person to register any securities
of any Consolidated Person.

 

3.20                           Other Agreements. 
Each of the agreements referred to in Section 5.7 will be duly
authorized, executed and delivered by the Controlling Partnership or the
parties thereto that are affiliated with the Controlling Partnership (other
than the Seller), as applicable, and, assuming due authorization, execution and
delivery by the other parties thereto, will be a valid and binding obligation
of the Controlling Partnership or the parties thereto that are affiliated with
the Controlling Partnership (other than the Seller), as applicable, enforceable
against them in accordance with its terms, except to the extent that
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other laws relating to or affecting creditors’ rights generally
and by general equity principles.

 

3.21                           Intellectual Property.  (i) The
Consolidated Persons own or have the right to use in perpetuity, without
payment to any other person, and have duly registered or filed for registration
with the appropriate Governmental Entities, the “KKR” trademark in the United
States and, to the knowledge of the Controlling Partnership, in all other
countries or jurisdictions where such trademark is reasonably necessary for the
conduct of the business of the Controlling 

 

14

 

Partnership and the
Consolidated Persons as presently conducted, (ii) the consummation of the
Purchase and Sale and the other transactions contemplated hereby (including the
Restructuring Transactions) does not and will not conflict with, alter or
impair any such rights, (iii) since January 1, 2007, none of the
Controlling Partnership or any of the Consolidated Persons has received any
written communication or notice from any person asserting any ownership
interest in the “KKR” trademark and (iv) none of the Controlling
Partnership or any of the Consolidated Persons has granted any license of any
kind relating to the “KKR” trademark to any unaffiliated third party or is
bound by or a party to any written option, license or similar Contract relating
to the “KKR” trademark with any unaffiliated third party.

 

4.                                       REPRESENTATIONS AND WARRANTIES OF
HOLDINGS

 

Holdings hereby represents and warrants to the
Seller as follows:

 

4.1                                 Organization. 
Holdings is duly organized and validly existing and in good standing
under the laws of the Cayman Islands.

 

4.2                                 Authority.  Holdings has
the requisite power and authority to execute and deliver this Agreement, to
perform its obligations hereunder and to consummate the transactions
contemplated hereby (including the Restructuring Transactions).  The execution, delivery and performance of
this Agreement and the consummation of the transactions contemplated hereby
(including the Restructuring Transactions) have been, or will be, duly
authorized by all necessary action on the part of Holdings and no other action
will be necessary on the part of Holdings for the execution, delivery and
performance by Holdings of this Agreement and the consummation of the
transactions contemplated hereby (including the Restructuring Transactions).  This Agreement has been duly executed and
delivered by Holdings and, assuming due authorization, execution and delivery
by the Purchaser, the Controlling Partnership, the Seller, the Group
Partnerships and the Acquired Partnership GP, constitutes a valid and binding
obligation of Holdings enforceable against Holdings in accordance with its
terms, except to the extent that enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or other laws relating to or affecting
creditors’ rights generally and by general equity principles.

 

4.3                                 No Conflicts. 
Neither the execution and delivery of this Agreement by Holdings nor the
consummation of the transactions contemplated hereby, nor compliance by
Holdings with any of the terms or provisions hereof, will (i) violate any
provision of the certificate of formation or limited partnership agreement of
Holdings and (ii) assuming that the consents, approvals and filings
referred to in Section 3.4 are duly obtained or made and except as would
not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect on Holdings (after the giving effect to the
Restructuring Transactions), (x) violate any statute, code, ordinance,
rule, regulation, judgment, order, award, decree or injunction applicable to
Holdings or any of its properties or assets, or (y) violate, conflict
with, result in a breach of any provision of or the loss of any benefit under,
or require redemption or repurchase or otherwise require the purchase or sale
of any securities or constitute a default under, result in the termination of
or a right of termination or cancellation under, accelerate the performance
required by, or result in the creation of any Lien upon any of the properties
or assets of Holdings under, any of the terms, conditions or provisions of any
Contract to which Holdings is a party, or by which Holdings or any of its
properties or assets may be bound or affected.

 

15

 

4.4                                 Consents and Approvals. 
No order, permission, consent, approval, license, authorization,
registration, or validation of, or filing with, or notice to, or exemption by,
any Governmental Entity by Holdings is necessary in connection with the
execution, delivery and performance of this Agreement by Holdings and the
consummation by Holdings of the transactions contemplated hereby.

 

5.                                       ADDITIONAL AGREEMENTS

 

5.1                                 Consent Solicitation.

 

(a)                                  The Controlling Partnership and the Seller shall as promptly
as practicable prepare a written consent and such other documents,
substantially in the form of the draft provided by the Controlling Partnership
to the Seller concurrently with the execution of this Agreement with such
changes as deemed reasonably necessary by the Controlling Partnership and
Seller acting in good faith (collectively, the “Consent Solicitation
Documents”) that may be necessary or desirable (as agreed reasonably and in
good faith by the Controlling Partnership and the Seller, taking into account
requirements under applicable law) to obtain the consent of the holders of at
least a majority of the Seller Common Units for which a properly submitted
consent form is submitted in response to the Consent Solicitation Documents
(excluding in both the numerator and the denominator any Seller Common Units
whose consent rights are controlled by the Controlling Partnership or its
affiliates) to consummate the Purchase and Sale (the “Requisite Unitholder
Consent”), all pursuant to the procedures to be agreed reasonably and in good
faith by the Controlling Partnership and the Seller, taking into account
requirements under applicable law.  To
the extent that the consent of holders of at least a majority of the Seller
Common Units outstanding (excluding from the numerator and the denominator any
Seller Common Units whose consent rights are controlled by the Controlling
Partnership or its affiliates and any Seller Common Units whose consent rights
are controlled as of the applicable record date by a person who has informed
the Seller in writing that it will not submit a consent form in response to the
Consent Solicitation Documents) have been obtained, all consents shall cease to
be revocable and the Requisite Unitholder Consent shall be deemed to have been
obtained on such date. Subject to Section 5.1(e), the Board has
recommended that the holders of Seller Common Units consent to the matters
included in the Requisite Unitholder Consent (the “Seller Recommendation”),
and the Seller shall include the Seller Recommendation in the Consent
Solicitation Documents.

 

(b)                                 On July 24, 2009, or as promptly as possible
thereafter, the Seller shall mail, or otherwise disseminate in a manner that
complies with any applicable law, rule, regulation and the Seller Limited
Partnership Agreement, the Consent Solicitation Documents to the holders of the
Seller Common Units.  The Seller shall
use its reasonable best efforts to obtain the Requisite Unitholder Consent as
promptly as practicable following the mailing or other dissemination of the
Consent Solicitation Documents.  In the
event that the consent solicitation period contemplated by the Consent
Solicitation Documents has expired, or would otherwise expire, and the
condition set forth in Section 7.1(a) was not, or would not be,
satisfied upon such expiration, the expiry time of the consent solicitation
shall be extended from time to time upon the request of either the Controlling
Partnership or the Seller; provided that in no event will the expiry
time be extended beyond the Outside Date or in violation of the Seller Limited 

 

16

 

Partnership
Agreement without in either case the prior consent of both the Controlling
Partnership and the Seller.

 

(c)                                  The Controlling Partnership shall furnish to the Seller all
information concerning the Controlling Partnership and each of the Consolidated
Persons and KKR Funds and such other matters as may be reasonably necessary or
advisable in connection with the Consent Solicitation Documents.  The Seller shall provide the Controlling
Partnership with a reasonable opportunity to review and comment (and the Seller
shall consider in good faith the inclusion of any comments provided by the
Controlling Partnership) on the Consent Solicitation Documents and any
amendments or supplements thereto prior to the mailing or other dissemination
thereof to the holders of the Seller Common Units.  The
Controlling Partnership represents that the preliminary unaudited pro forma
segment information to be included in the Consent Solicitation Documents will
be based on historical segment information of the KKR Group and historical
financial information of the Acquired Partnership and its subsidiaries and will
give effect in all material respects to the aspects of the transactions
contemplated hereby (including the Restructuring Transactions) described
therein as if such transaction aspects had occurred on January 1, 2008
with respect to the preliminary unaudited pro forma statement of operations
segment information and as of March 31, 2009 with respect to the
preliminary unaudited pro forma statement of financial condition segment
information by applying the adjustments described in the accompanying notes.
Such adjustments are based on information that is available and determinable as
of the date of this Agreement and are based on assumptions that management of
the Controlling Partnership believes are reasonable as of the date of this
Agreement in order to reflect, on a pro forma basis, the impact of the
transaction aspects described therein on the historical segment financial
information of the KKR Group.

 

(d)                                 The Controlling Partnership and, with respect only to the
Specified Information (as defined below), the Seller, agree that none of the
information included or incorporated by reference in the Consent Solicitation
Documents will, at the time the Consent Solicitation Documents are mailed or
otherwise disseminated to the holders of the Seller Common Units, contain any
untrue statement of a material fact or omit to state any material fact necessary
to make the statements therein, in the light of the circumstances under which
they were made, not misleading.  If at
any time prior to the date on which the Requisite Unitholder Consent is
received any information should be discovered by either the Controlling
Partnership or the Seller that should be set forth in an amendment or
supplement to the Consent Solicitation Documents so that the Consent
Solicitation Documents would not include any misstatement of a material fact or
omit to state any material fact necessary to make the statement therein, in the
light of the circumstances under which they were made, not misleading, the
party that discovers such information shall promptly notify the other party,
and to the extent required by law, rules or regulations, an appropriate
amendment or supplement describing such information shall be promptly mailed or
otherwise disseminated to the holders of the Seller Common Units.  For purposes of this Agreement, “Specified
Information” shall mean any information concerning the Independent
Directors and the process conducted by them in connection with the transactions
contemplated hereby furnished in writing by or on behalf of the Independent
Directors specifically for use in the Consent Solicitation Documents, it being understood
that such information shall be identified as such by the Seller prior to the
mailing or other dissemination of the Consent Solicitation Documents.

 

17

 

(e)                                  At any time prior to the obtaining of the Requisite
Unitholder Consent, the Independent Directors may change their recommendation
to the Board in response to any material events or circumstances, if the
Independent Directors have concluded in good faith, after consultation with,
and taking into account the advice of, their outside legal counsel, that had
such material events or circumstances occurred and/or been known to the
Independent Directors prior to the date of this Agreement, the Independent Directors
would, in compliance with their fiduciary duties under applicable law, not have
recommended, or would have modified the terms of their recommendation, to the
Board that the Board approve this Agreement and the transactions contemplated
by this Agreement.

 

5.2                                 Reasonable Best Efforts.

 

(a)                                  Subject to the terms and conditions of this Agreement, each
of the Controlling Partnership and the Seller shall use its reasonable best
efforts to take, or cause to be taken, all actions and to do, or cause to be done,
all things necessary, proper or advisable to ensure that the conditions set
forth in Section 7 of this Agreement are satisfied and to consummate the
transactions contemplated by this Agreement as promptly as practicable,
including using its reasonable best efforts to (i) obtain (and to
cooperate with the other party to obtain) any consent, authorization, order or
approval of, or any exemption by, any Governmental Entity or any third party
which is required to be obtained in connection with the transactions
contemplated by this Agreement from Governmental Entities or third parties and (ii) making
all registrations, notifications and filings with any Governmental Entity or
any third party that are required to be made in connection with the
transactions contemplated by this Agreement. 
Notwithstanding the foregoing, nothing in this Agreement shall be deemed
to require the Controlling Partnership or the Seller to take, or agree to take,
any action if the taking of such action would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect on the Purchaser
(after giving effect to the Restructuring Transactions, but excluding the
Acquired Partnership and its subsidiaries) or the Seller, as applicable.  Notwithstanding the foregoing, nothing
contained in this Agreement shall be deemed to require the Controlling
Partnership or any of its affiliates to take any action that would require the
Controlling Partnership or any of its affiliates to become subject to
regulation under the Investment Company Act.

 

(b)                                 Each of the Controlling Partnership and the Seller shall in
connection with the efforts referenced in Section 5.2(a) (i) promptly
cooperate with and furnish information to the other in connection with any
action required to be taken pursuant to Section 5.2(a), and (ii) permit
the other to review any communication given by it to, and consult with each
other in advance of any meeting or conference with, any Governmental Entity in
connection with the foregoing, and to the extent permitted by law, give the
other the opportunity to attend and participate in such meetings and
conferences.

 

5.3                                 No Solicitation.

 

(a)                                  The Seller shall not, and shall cause its investment
bankers, attorneys, accountants, agents and other representatives not to,
directly or indirectly, (i) solicit, initiate, knowingly encourage, or
take any action intended to, or which could reasonably be expected to,
facilitate the making by any person of an Acquisition Proposal (as defined
below) or any inquiry 

 

18

 

or proposal
that could reasonably be expected to lead to an Acquisition Proposal, (ii) participate
in any discussions or negotiations regarding an Acquisition Proposal or any
inquiry that constitutes or could reasonably be expected to lead to an
Acquisition Proposal, (iii) furnish to any person any information or data
with respect to it or any of its assets or otherwise cooperate with or take any
action to knowingly facilitate any proposal that constitutes or could
reasonably be expected to lead to an Acquisition Proposal or (iv) enter
into any letter of intent, memorandum of understanding or other agreement or
understanding relating to, or that could reasonably be expected to lead to, an
Acquisition Proposal.  The Seller shall
promptly notify the Controlling Partnership of the receipt of any Acquisition
Proposal (or any request for any information or data or other inquiry or
request that could reasonably be expected to lead to an Acquisition Proposal).  For the avoidance of doubt, the parties
understand and agree that nothing in this Agreement is intended to give the
Independent Directors the power or authority to participate in any discussions
or negotiations regarding, or entering into any agreement or understanding on
behalf of the Seller with any person with respect to, any direct or indirect
acquisition of any Limited Partner Interests, any of the outstanding Seller
Common Units or any of the assets of the Acquired Partnership.

 

(b)                                 For purposes of this Agreement, “Acquisition Proposal”
means any inquiry, proposal or offer, whether or not conditional, from any
person other than the Controlling Partnership or its affiliates relating to any
direct or indirect acquisition of (i) any Limited Partner Interests, (ii) 20%
or more of the outstanding Seller Common Units or (iii) 20% or more of the
consolidated assets of the Acquired Partnership.

 

5.4                                 Restructuring Transactions.

 

(a)                                  Holdings shall use its reasonable best efforts to take, or
cause to be taken, such actions as are necessary so that at the Effective Time:
(i) the Group Partnerships shall own, directly or indirectly, all of the
Contributed Interests, (ii) upon the completion of the Purchase and Sale,
the Purchaser shall contribute all of the Limited Partnership Interests and any
assets of the Acquired Partnership distributed to the Purchaser in respect of
such Limited Partnership Interests, directly or indirectly, to the Group
Partnerships in exchange for a direct or indirect controlling interest and 30%
of the outstanding Class A units representing limited partner interests in
each of the Group Partnerships (it being understood that no Class A units
that are permitted to be issued pursuant to Section 5.9(a)(iv)(C) shall
be deemed outstanding for purposes of the foregoing), and (iii) upon the
completion of the Purchase and Sale, the structure of the KKR Group shall be
consistent with the structure set forth in Exhibit B hereto.  The transactions contemplated by this Section 5.4
are sometimes referred to herein as the “Restructuring Transactions”.

 

(b)                                 The Restructuring Transactions shall be implemented in a
manner that is consistent with the steps set forth in the structure memorandum
attached as Exhibit C hereto, except for deviations thereto
(including to address a change in law) which would not reasonably be expected
to have an adverse impact in more than an insignificant respect on the Seller,
the Controlling Partnership or the holders of the Seller Common Units or
deviations consented to by the Seller, which consent shall not be unreasonably
withheld or delayed.    The Controlling
Partnership shall consider in good faith any deviations to the steps (or
methods of implementing the steps) set forth in Exhibit C requested
by the Seller or its representatives, it being understood 

 

19

 

that the
decision of whether or not to implement any such requested deviations or
methods shall be in the sole determination of the Controlling Partnership
acting in good faith.

 

(c)                                  In connection with the Restructuring Transactions, the
Seller and KKR Management Holdings Corp. shall not make an election under Section 362(e)(2)(C) of
the Code to reduce the tax basis in the Seller Common Units held by holders of
Seller Common Units immediately before the Restructuring Transactions unless a
majority of the Independent Directors, prior to the US Listing (as defined in
the Investment Agreement) consent to such election in their sole
discretion.  Notwithstanding the
foregoing, the Independent Directors shall consult in good faith with the
Controlling Partnership about whether to make such an election.

 

(d)                                 At or prior to the Effective Time, the Controlling
Partnership shall deliver to the Seller a certificate signed by a senior
officer on behalf of each of the Controlling Partnership GP and the general
partner of Holdings in form and substance reasonably satisfactory to the Seller
certifying that each has performed in all material respects all obligations
required to be performed by it under Section 5.4, Section 5.5, Section 5.6,
Section 5.7 and Section 5.9 during the period from the Satisfaction
Date to the Effective Time.  The
certificate shall be delivered at the offices of Simpson Thacher &
Bartlett LLP, 425 Lexington Avenue, New York, NY 10017 or such other place as
the parties may mutually agree.

 

5.5                                 Insurance.  Except as
otherwise set forth in Section 5.5 of the Confidential Controlling
Partnership Disclosure Schedules, from the Effective Time until the occurrence
of the closing contemplated by the Investment Agreement, the Seller shall, and
to the extent required, the Controlling Partnership shall cause the
non-Independent Directors of the Seller GP to authorize the Seller to, maintain
directors’ and officers’ liability insurance for the benefit of the directors
and officers (and former directors and officers) of the Seller GP containing at
least the same coverage and amounts as the existing directors’ and officers’
liability insurance of the Seller GP in effect on the date of this Agreement; provided
that (i) the Seller shall use its commercially reasonable efforts to
increase the coverage limit for such insurance coverage to $100 million and (ii) the
Seller shall not be permitted to expend annually in excess of the percentage
set forth in Section 5.5 of the Confidential Controlling Partnership
Disclosure Schedule of the annual premium currently paid by the Seller for such
insurance; provided that if the annual premium for such insurance
coverage exceeds such amount, the Seller shall be required to obtain a policy
with the greatest coverage available for a cost not exceeding such amount.

 

5.6                                 Modifications to Existing Agreements. 
Each of the Controlling Partnership and the Seller shall use its
reasonable best efforts to take, or cause to be taken, all actions and to do,
or cause to be done, all things necessary, proper or advisable to cause, prior
to the Satisfaction Date, or as promptly as practicable thereafter and in any
event prior to the Effective Time (i) the Investment Agreement, dated as
of May 10, 2006, between Kohlberg Kravis Roberts & Co. L.P. and
the Seller, as amended, supplemented or otherwise modified from time to time,
to be terminated at the Effective Time pursuant to the Termination Agreement
substantially in the form attached hereto as Exhibit M, (ii) the
Services Agreement, dated as of April 23, 2006 among the Seller, Kohlberg
Kravis Roberts & Co. L.P., the Seller GP and the other service
recipients named therein to be amended effective at or immediately following
the Effective Time so as to read substantially in the form attached hereto as Exhibit N,
(iii) the 

 

20

 

Investment Policies and
Procedures of the Seller to be amended effective as of the Effective Time so as
to read substantially in the form attached hereto as Exhibit O, (iv) the
limited partnership agreement of the Acquired Partnership to be amended as of
the Effective Time so as to read substantially in the form attached hereto as Exhibit P,
(v) the audit committee charter of the board of the Seller GP to be
amended as of the Effective Time so as to read substantially in the form
attached hereto as Exhibit Q and (vi) the articles of
incorporation of the Seller GP to be amended effective as of the Effective Time
so as to read in substantially the form attached hereto as Exhibit R.

 

5.7                                 Execution of Additional Agreements. 
The Controlling Partnership and Holdings shall use its reasonable best
efforts to execute, or to cause the other parties thereto to execute, prior to
the Satisfaction Date (it being understood that the provisions of the following
agreements shall not be effective until the Effective Time), the Investment
Agreement between the Controlling Partnership, the Seller and the Group
Partnerships, substantially in the form attached hereto as Exhibit D
(the “Investment Agreement”), the Exchange Agreement between the Seller,
the Group Partnerships, Holdings and the Purchaser, substantially in the form
attached hereto as Exhibit E (the “Exchange Agreement”), the
Amended and Restated Limited Partnership of the Purchaser, substantially in the
form attached hereto as Exhibit G (the “Purchaser LPA”), the
Amended and Restated Limited Partnership Agreement of Management Holdings,
substantially in the form attached hereto as Exhibit H (the “Management
Holdings LPA”), the Amended and Restated Limited Partnership Agreement of
Fund Holdings, substantially in the form attached hereto as Exhibit I
(the “Fund Holdings LPA”),the Lock-Up Agreements, substantially in the
forms attached hereto as Exhibit K (the “Lock-Up Agreement”)
and the Tax Receivables Agreement between the Seller, Holdings, Management
Holdings Corp. and Management Holdings substantially in the form attached
hereto as Exhibit L (the “Tax Receivables Agreement”).   The Controlling Partnership shall use its
reasonable best efforts to execute, or to cause the other parties thereto to
execute, prior to the Effective Time, the Confidentiality and Restrictive
Covenant Agreement between the applicable employing entity and those persons
who are members of KKR & Co. L.L.C. immediately prior to the
consummation of the Restructuring Transactions, substantially in the form
attached hereto as Exhibit F, and the Amended and Restated Limited
Liability Company Agreement of the Controlling Partnership GP, substantially in
the form attached hereto as Exhibit J (the “Controlling
Partnership GP Agreement”).  The
Seller shall use its reasonable best efforts to execute, prior to the
Satisfaction Date, the Investment Agreement, the Exchange Agreement and the Tax
Receivables Agreement, substantially in the forms attached as exhibits hereto.

 

5.8                                 Delivery of Letters.

 

(a)                                  The Controlling Partnership shall use its reasonable best
efforts to cause to be delivered to the Seller a “comfort” letter from Deloitte &
Touche LLP with respect to financial information contained in the Consent
Solicitation Documents, dated the date of the Consent Solicitation Documents,
in a form customary in scope and substance for “comfort” letters delivered by
independent public accountants in connection with registration statements
related to equity securities of an issuer (it being understood that such “comfort”
letters shall also provide comfort on the interim financial statements included
in the Consent Solicitation Documents in accordance with applicable Statement
on Auditing Standards, customary comfort on the pro forma financial statements (except that it is anticipated that the pro forma
financial 

 

21

 

statements
will not be compliant with Rule 11-02 of Regulation S-X) and other data and customary negative assurance comfort).

 

(b)                                 The Controlling Partnership shall use its reasonable best
efforts to cause to be delivered to the Seller a “negative assurance” letter
from Simpson Thacher & Bartlett LLP with respect to the absence of
material misstatements or omissions in the Consent Solicitation Documents,
dated the date of the Consent Solicitation Documents in a form customary in
scope and substance for “negative assurance” letters delivered by issuer’s
counsel in connection with registration statements relating to equity
securities of an issuer.

 

(c)                                  The Controlling Partnership
shall use its reasonable best efforts to cause to be
delivered to the Seller an opinion from Simpson Thacher & Bartlett LLP
dated as of the date of the Consent Solicitation Documents, substantially to
the effect that, subject to the qualifications, assumptions and
limitations stated therein, the statements made in the Consent
Solicitation Documents under the caption “Material U.S. Federal Income Tax
Considerations,” insofar as they purport to constitute summaries of matters of
United States federal tax law and regulations or legal conclusions with respect
thereto, constitute accurate summaries of the matters described therein in all
material respects.

 

5.9                                 Conduct of Business of the Controlling
Partnership.

 

(a)                                  Except as contemplated by this Agreement, including the
Restructuring Transactions, as set forth in Section 5.9 of the
Confidential Controlling Partnership Disclosure Schedule, as required by
applicable law, statute, rule, ordinance or regulation or with the prior
written consent of the Seller, during the period from the date of this
Agreement until the Effective Time, the Controlling Partnership shall, and
shall cause each of the Consolidated Persons to, conduct its business in all
material respects in the usual, regular and ordinary course.  Without limiting the generality of the
foregoing, except as contemplated by this Agreement, including the
Restructuring Transactions, as set forth in Section 5.9 of the
Confidential Controlling Partnership Disclosure Schedule or as required by
applicable, law, statute, rule, ordinance or regulation or with the prior
written consent of the Seller, from the date of this Agreement until the
Effective Time:

 

(i)                                     the Controlling
Partnership shall not, and shall not permit any Consolidated Person to, amend
its respective partnership agreement, articles of association, certificate of
incorporation, bylaws or equivalent organizational documents in any manner that
would adversely affect the holders of Seller Common Units in any material
respect;

 

(ii)                                  the Controlling
Partnership shall not, and shall not permit any Consolidated Person to, make
any change in any method of accounting or accounting practice or policy other
than those required by GAAP or the SEC;

 

(iii)                               the Controlling
Partnership shall not, and shall not permit the Purchaser to, adopt, enter
into, amend or modify any Purchaser Enhanced Arrangement;

 

(iv)                              the Controlling
Partnership shall not, and shall not permit any Consolidated Person to, (1) subdivide,
combine or reclassify, directly or indirectly, any of 

 

22

 

the
partnership units or partnership interests, membership interests, shares of
capital stock, other equity securities or interests, (2) redeem, purchase
or otherwise acquire, or call for redemption any partnership units or
partnership interests, membership interests, shares of capital stock, other
equity securities or interests or (3) issue any partnership units or
partnership interests, membership interests, shares of capital stock or other
equity securities or interests or any option, warrant or right relating thereto
or any securities convertible into or exchangeable therefor, other than (A) to
the Purchaser or another Consolidated Person, (B) grants of equity awards
to any officer, employee, consultant, director or other service provider of the
Purchaser or any of its affiliates but only to the extent such grants do not,
and will not, reduce the percentage of the Class A common units of the
Group Partnerships that will be owned directly or indirectly by the Seller
below 30% of the outstanding Class A common units of the Group
Partnerships, (C) issuances not involving securities of the Controlling
Partnership or the Purchaser to third parties pursuant to an arms-length
transaction, (D) issuances not involving securities of the Controlling
Partnership or the Purchaser to persons who will hold a direct or indirect
equity interest in Holdings following the Restructuring Transactions so long as
any equity interests so issued will constitute Contributed Interests, except as
otherwise set forth in Section 3.6(a) of the Confidential Controlling
Partnership Disclosure Schedule, or (E) redemptions or repurchases of
equity securities or interests or options, warrants or rights relating thereto
or securities convertible into or exchangeable therefor from former or
departing employees, members, partners, or consultants of any Consolidated
Person consistent with such Consolidated Person’s ordinary practice;

 

(v)                                 the Controlling
Partnership shall not, and shall not permit any Consolidated Person to,
declare, set aside, pay or make any dividend or other distribution to the
holders of its respective partnership units or partnership interests,
membership interests, shares of capital stock or other equity securities or
interests, except for dividends or distributions to the Purchaser or another
Consolidated Person;

 

(vi)                              the Controlling
Partnership shall not, and shall not permit any Consolidated Person to, enter
into any related party transaction as such term is defined in Item 404(a) of
Regulation S-K under the Securities Act other than any such transaction the
terms of which are no less favorable to the Controlling Partnership or the
Consolidated Person, as applicable, than those that would be available on an
arm’s-length basis with a third party;

 

(vii)                           none of the
Controlling Partnership, the Purchaser GP, KKR Management Holdings Corp. or the
Purchaser shall incur or assume any indebtedness for borrowed money or
guarantee any such indebtedness; and

 

(viii)                        the Controlling
Partnership shall not, and shall not permit any Consolidated Persons to commit
or agree to take, whether in writing or otherwise, any of the foregoing actions
that the Controlling Partnership or such Consolidated Persons are prohibited
from taking under clauses (i) through (vii) above.

 

In addition,
the Controlling Partnership shall take the actions set forth in Section 5.9(ii) of
the Confidential Controlling Partnership Disclosure Schedule on or prior to the
Effective Time.

 

23

 

(b)                                 Notwithstanding Section 5.9(a), nothing in this
Agreement shall prohibit or otherwise prevent the Controlling Partnership or
the Consolidated Persons from expanding any of their existing businesses or
entering into new lines of business in the asset management or financial
services industries.

 

5.10                           Publicity.

 

(a)                                  The Controlling Partnership and the Seller shall consult
with each other prior to issuing any press release or other public announcement
materials with respect to this Agreement or the transactions contemplated by
this Agreement and neither the Controlling Partnership or the Seller shall
issue any such press release or other public announcement materials without the
prior consent of the other party (such consent not to be unreasonably withheld
or delayed), except as may be required by law, rule or regulation, in
which case the party required to make the release or announcement shall allow
the other party reasonable time to comment on such release or announcement in
advance of such issuance.  The
Controlling Partnership and the Seller shall consult with each other regarding communications
with holders of the Seller Common Units, analysts, journalists and prospective
investors related to this Agreement and the transactions contemplated hereby.

 

(b)                                 Notwithstanding any other provisions of this Agreement,
nothing contained in this Agreement shall prohibit the Seller from making any
disclosure to the holders of Seller Common Units or to the public (including
with respect to any change in the Independent Directors recommendation made in
accordance with Section 5.1) if, in the good faith judgment of the
Independent Directors after consultation with outside legal counsel, such
disclosure would be required under applicable law or stock exchange rules and
would be true and correct in all material respects; provided that the
Controlling Partnership shall be given, to the extent possible, a reasonable
time to comment on such disclosure prior to it being made to the holders of
Seller Common Units or to the public. 
The Controlling Partnership and Holdings acknowledge that the Seller is
a publicly listed limited partnership in the Netherlands and is accordingly
required to comply with applicable Dutch disclosure rules of the Dutch
Financial Markets Supervision Act.

 

5.11                           Anti-takeover Statutes. 
If any anti-takeover or similar statute or regulation is or may become
applicable to the transactions contemplated by this Agreement, the Seller shall
grant such approvals and take such other actions as are necessary so that such
transactions may be consummated as promptly as practicable on the terms contemplated
by this Agreement and otherwise act to eliminate or minimize the effects of
such statute or regulation on such transactions.

 

5.12                           Access to Information. 
Upon reasonable notice and subject to the terms of the Confidentiality
Agreement, dated June 20, 2008, between the Seller and Kohlberg Kravis
Roberts & Co. L.P., the Controlling Partnership shall, and shall cause
the Consolidated Persons to, afford the Seller, the Independent Directors and
the respective representatives reasonable access, during normal business hours
during the period prior to the Effective Time, to their respective personnel
and documents (including, books, accounts, contracts, commitments, tax returns
and other records) and shall furnish to the Seller, the Independent Directors
and their respective representatives as promptly as practicable after receiving
a request therefor such other 

 

24

 

information concerning
the business of the Controlling Partnership and the Consolidated Persons as the
Seller, the Independent Directors or their respective representatives may
reasonably request; provided, that the foregoing shall not obligate the
Controlling Partnership to disclose any information of the Controlling
Partnership or the Consolidated Persons that the Controlling Partnership
reasonably determines, based on the advice of counsel, to be privileged; provided
that the Controlling Partnership shall use reasonable best efforts to make
appropriate substitute disclosure arrangements under circumstances in which the
immediately preceding proviso applies.

 

5.13                           Litigation.  In the event
a Proceeding (as defined below) relating to this Agreement, the Purchase and
Sale or the other transactions contemplated hereby is initiated by a third party
between the date of the Original Agreement and the Effective Time against the
Seller, during such period the Seller shall conduct and control such
Proceeding.  The Seller shall give the
Controlling Partnership the opportunity to comment with respect to the defense
of such Proceedings and such comments shall be duly taken into account.  The Seller shall give the Controlling
Partnership the opportunity to participate in the defense of any such
Proceeding, shall keep the Controlling Partnership informed of the progress of
such Proceeding and its or their defense and shall make available to the
Controlling Partnership all documents, notices, communications and filings
(including court papers) as may be requested by the Group Partnerships.  The Seller shall not settle or compromise any
such Proceeding without the prior written consent of the Controlling
Partnership, which shall not be unreasonably withheld or delayed.  Following the Effective Time, the Group
Partnerships shall be entitled to take control of and to conduct such
Proceeding.

 

6.                                       INDEMNIFICATION

 

(a)                                  To the fullest extent permitted by applicable law, from the
Effective Time through the earlier of (i) the sixth anniversary thereof
and (ii) until such time as the beneficiaries of this Section 6
become entitled to the benefits of the covenants and agreements contained in Section 5
of the Investment Agreement, the Group Partnerships shall indemnify, defend and
hold harmless, and provide advancement of expenses to, each present and former
director and officer of the Seller GP and the persons identified in Section 6.1
of the Confidential Controlling Partnership Disclosure Schedule against all
losses, liabilities, damages, judgments and fines (“Losses”) incurred in
connection with any suit, claim, action, proceeding, arbitration or
investigation (“Proceedings”) arising out of or related to actions taken
by them in their capacity as directors or officers of the Seller GP (including,
this Agreement and the transactions contemplated hereby)  or taken by them at the request of the Seller
or the Seller GP, whether asserted or claimed prior to, at or after the
Effective Time.

 

(b)                                 The Group Partnerships shall indemnify and hold harmless to
the fullest extent permitted by applicable law the Purchaser, the Purchaser GP,
the Controlling Partnership, the Seller and each present and former director
and officer of the Seller GP and the persons identified in Section 6.1 of
the Confidential Controlling Partnership Disclosure Schedule against any and
all Losses to which they or any of them may become subject under the Securities
Act, the Exchange Act or other applicable law, statute, rule or regulation
insofar as such Losses arise out of or are based upon any untrue statement or
alleged untrue statement of a material fact contained in the Consent
Solicitation Documents, the Press Release, any other document issued 

 

25

 

by the
Controlling Partnership, the Seller or any of their respective affiliates in
connection with or otherwise relating to the Purchase and Sale, or in any
amendment or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, and the Group
Partnerships agree to reimburse each such person, as incurred, for any legal or
other expenses reasonably incurred by such person in connection with
investigating or defending against any such Losses to the fullest extent
permitted by applicable law; provided, however that the
Group Partnerships shall not be liable in any such case to the extent that any
such Losses arise out of or are based upon any such untrue statement or alleged
untrue statement or omission or alleged omission made in the Consent
Solicitation Documents, the Press Release or in any amendment thereof or
supplement thereto, or in any such other document in reliance upon and in
conformity with the Specified Information.

 

(c)                                  The Group Partnerships shall, in respect of any indemnified
person that was a director of the Seller GP as of the date of this Agreement
who may be called upon, subsequent to the date of his resignation or expiration
of his term, to testify in any Proceeding in connection with this Agreement or
the transactions contemplated hereby, provide such person with reasonable
compensation for his time spent testifying in such Proceeding and preparing for
such testimony.

 

(d)                                 If the indemnification provided for this Section 6.1 is
unavailable (other than as a result of application of the proviso to Section 6.1(b))
to or insufficient to hold harmless the indemnified person in respect of any
Losses, then the Group Partnerships shall contribute to the amount paid or
payable by the indemnified person as a result of such Losses (A) in such
proportion as is appropriate to reflect the relative fault of the Group
Partnerships, on the one hand, and the indemnified person, on the other or (B) if
the allocation provided by clause (A) is not permitted by applicable law,
or provides a lesser sum to the indemnified person than the amount hereinafter
calculated, in such proportion as is appropriate to reflect not only the
relative fault of the Group Partnerships, on the one hand, and the indemnified
person, on the other, in respect of such Losses but also the relative benefits
received by the Group Partnerships, on the one hand, and the indemnified
person, on the other, from the transactions contemplated by this Agreement as
well as any other relevant equitable considerations.  The amount paid or payable by the indemnified
person as a result of the Losses referred to above in this Section 6.1
shall be deemed to include any legal or other expenses reasonably incurred by
such indemnified person in connection with investigating or defending any such
action or claim.  For purposes of this Section 6,
any benefit or fault in respect of the transactions contemplated by this
Agreement attributable to Holdings and its affiliates shall be attributed to
the Group Partnerships.

 

(e)                                  In case any Proceeding shall be commenced or instituted
involving any person in respect of which indemnity or contribution may be
sought pursuant to this Section 6.1, such person shall promptly notify the
Group Partnerships thereof in writing; provided that the failure to so
notify the Group Partnerships will not affect the rights of such person under
this Section 6.1 except to the extent that the Group Partnerships are
actually prejudiced by such failure.  The
Group Partnerships shall be entitled to take control of and conduct such
Proceeding and to appoint counsel (including local counsel) of the Group
Partnerships’ choosing to represent the indemnified party in connection with
such Proceeding (in which case the Group Partnerships 

 

26

 

shall not
thereafter be responsible for the fees and expenses of any separate counsel
retained by the indemnified party). 
Notwithstanding the Group Partnerships’ election to appoint counsel
(including local counsel) to represent the indemnified party in connection with
a Proceeding, the indemnified party shall have the right to employ separate
counsel (including local counsel), and the Group Partnerships shall bear the reasonable
fees, costs and expenses of such separate counsel if (i) the use of
counsel chosen by the Group Partnerships to represent the indemnified party
would present such counsel with a conflict of interest (based on the advice of
counsel to the indemnified person), (ii) such Proceeding includes both the
indemnified party and the Group Partnerships, and the indemnified party shall
have reasonably concluded (based on the advice of counsel to the indemnified
person) that there may be legal defenses available to it and/or other
indemnified parties that are different from or additional to those available to
the Group Partnerships or (iii) the Group Partnerships shall authorize the
indemnified party to employ separate counsel at the expense of the Group
Partnerships.  It is understood that the
Group Partnerships shall not, in respect of the legal expenses of any
indemnified party in connection with any Proceeding or related Proceedings in
the same jurisdiction, be liable for the fees and expenses of more than one
separate firm (in addition to any local counsel) for all such indemnified
parties.  The Group Partnerships shall
not be liable under this Section 6.1 for any settlement or compromise or
consent to the entry of any judgment with respect to any pending or threatened
Proceeding in respect of which indemnification or contribution may be sought
under this Section 6.1 (whether or not the indemnified parties are actual
or potential parties to such claim or action), unless such settlement,
compromise or consent is consented to by the Group Partnerships, such consent
not to be unreasonably withheld or delayed.

 

(f)                                    Notwithstanding any other provision of this Agreement to the
contrary, the indemnified parties specified in this Section 6.1 shall be
third party beneficiaries of this Section 6.1.  The provisions of this Section 6.1 are
intended to be for the benefit of each such person to whom this Section 6.1
applies (and, in the case of each director of the Seller GP, for the benefit of
such director in his individual capacity) and his or her heirs.  The obligations of the Group Partnerships
under this Section 6.1 shall not be terminated or modified in such a
manner as to adversely affect any such person to whom this Section 6.1
applies without the express written consent of such affected person.

 

(g)                                 If any of the Group Partnerships or their successors or
assigns shall (i) consolidate with or merge into any person and shall not
be the continuing or surviving person in such consolidation or merger or (ii) transfer
all or substantially all of its assets to any other persons, then, and in each
such case, proper provisions shall be made so that the successors and assigns
of the Group Partnerships shall assume the obligations of the Group
Partnerships set forth in this Section 6.1.

 

(h)                                 The Group Partnerships or their successors or assigns shall
be entitled to repayment of all applicable expenses advanced to any person
pursuant to this Section 6 if it is ultimately determined by a
non-appealable judgment that such person is not entitled to indemnification
hereunder with respect to the matter for which any such expenses were advanced.

 

(i)                                     The obligations of the Group Partnerships set forth in this Section 6
shall be joint and several.

 

27

 

7.             CONDITIONS PRECEDENT

 

7.1           Mutual Conditions. 
The respective obligations of each party to consummate the Purchase and
Sale shall be subject to the satisfaction or waiver on the Satisfaction Date by
the Controlling Partnership and the Seller of each of the following conditions:

 

(a)           Unitholder
Approval.  The Requisite Unitholder Consent shall have
been obtained and shall be in full force and effect.

 

(b)           Regulatory
Approvals.  Any applicable waiting period (and any
extension thereof) under the HSR Act relating to the transactions contemplated
by this Agreement shall have expired or been terminated.

 

(c)           No
Injunctions or Restraints; Illegality.  No order, injunction, judgment, award or
decree issued by any Governmental Entity of competent jurisdiction or other
legal restraint or prohibition preventing the consummation of the Purchase and
Sale shall be in effect.  No law,
statute, rule, ordinance or regulation shall have been enacted, entered,
promulgated or enforced by any Governmental Entity which prohibits or makes
illegal the consummation of the Purchase and Sale.

 

7.2           Conditions to Obligations of the
Purchaser.  The obligations of the Purchaser to
consummate the Purchase and Sale are also subject to the satisfaction or waiver
on the Satisfaction Date by the Controlling Partnership of each of the
following conditions:

 

(a)           Representations
and Warranties.  The representations and warranties of the
Seller set forth in this Agreement shall be true and correct as of the date of
this Agreement and (except to the extent such representations and warranties
are expressly limited to an earlier date) as of the Satisfaction Date as though
made on and as of the Satisfaction Date, except where the failure of such
representations and warranties to be so true and correct (without giving effect
to any materiality or Material Adverse Effect or similar qualifiers set forth
therein), individually or in the aggregate, has not had, and would not
reasonably be expected to have, a Material Adverse Effect on the Acquired
Partnership.  The Controlling Partnership
shall have received on the Satisfaction Date a certificate, signed on behalf of
the Seller by the Chief Financial Officer of the Seller, attesting to the
foregoing in form and substance reasonably satisfactory to the Controlling
Partnership.

 

(b)           Performance
of Obligations by the Seller.  The Seller shall have performed in all
material respects all obligations required to be performed by it under this
Agreement at or prior to the Satisfaction Date. The Controlling Partnership
shall have received on the Satisfaction Date a certificate, signed on behalf of
the Seller by the Chief Financial Officer of the Seller, attesting to the
foregoing in form and substance reasonably satisfactory to the Controlling
Partnership.

 

(c)           Absence
of Material Adverse Effect.  Since the date of this Agreement, there shall
not have been any Effect that has had or would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect on the Acquired
Partnership.

 

28

 

(d)           Execution of Other Agreements. 
The Investment Agreement, the Exchange Agreement and the Tax Receivables
Agreement, in substantially the forms attached as an exhibit to this Agreement
shall have been duly authorized, executed and delivered by the Seller and shall
be in full force (it being understood that the provisions of such agreements
shall not be effective until the Effective Time).

 

7.3           Conditions to Obligations of the Seller. 
The obligations of the Seller to consummate the Purchase and Sale are
also subject to the satisfaction or waiver on the Satisfaction Date by the
Seller of each of the following conditions:

 

(a)           Representations
and Warranties.  (i) The representations and warranties
of the Controlling Partnership set forth in Section 3.18 shall be true and
correct as of the date of this Agreement, except where the failure of such
representations and warranties to be so true and correct, individually or in
the aggregate has not had, and would not reasonably be expected to have, a
Material Adverse Effect on the holders of Seller Common Units and (ii) the
other representations and warranties of the Controlling Partnership and the
representations and warranties of Holdings and the Purchaser set forth in this
Agreement shall be true and correct as of the date of this Agreement and
(except to the extent such representations and warranties are expressly limited
to an earlier date) as of the Satisfaction Date as though made on and as of the
Satisfaction Date, except where the failure of such representations and
warranties to be so true and correct (without giving effect to any materiality
or Material Adverse Effect or similar qualifiers set forth therein),
individually or in the aggregate, has not had, and would not reasonably be
expected to have, a Material Adverse Effect on (1) the Purchaser in the
case of the other representations and warranties of the Controlling Partnership
and the Purchaser, or (2) Holdings, in the case of the representations and
warranties of Holdings (in each case after giving effect to the Restructuring
Transactions, but, in the case of the Purchaser, excluding the Acquired
Partnership and its subsidiaries).  The
Seller shall have received a certificate on the Satisfaction Date signed on
behalf of a senior officer of each of the Controlling Partnership GP and the
general partner of Holdings attesting to the foregoing in form and substance
reasonably satisfactory to the Seller.

 

(b)           Performance
of Obligations of the Controlling Partnership.  Each of the Controlling Partnership, the
Purchaser and Holdings shall have performed in all material respects all
obligations required to be performed by it under this Agreement at or prior to
the Satisfaction Date.   The Seller shall
have received a certificate on the Satisfaction Date signed on behalf of a
senior officer of each of the Controlling Partnership GP and the general
partner of Holdings attesting to the foregoing in form and substance reasonably
satisfactory to the Seller.

 

(c)           Absence of Material Adverse Effect.  Since the date of
this Agreement, there shall not have been any Effect that has had or would
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect on the holders of the Seller Common Units.

 

(d)           Execution of Other Agreements.  Each of the Investment Agreement, the
Exchange Agreement, the Tax Receivables Agreement, the Purchaser LPA, the
Management Holdings LPA, the Fund Holdings LPA and the Lock-Up Agreements in
substantially the forms attached as exhibits to this Agreement shall have been
duly authorized, executed and delivered 

 

29

 

by
each of the parties thereto (other than the Seller) and shall be in full force
(it being understood that the provisions of such agreements shall not be
effective until the Effective Time).

 

(e)           Delivery of Letters.  The Seller shall have received the “comfort”
letter, the “negative assurance” letter and the opinion letter contemplated by Section 5.8
of this Agreement, each in form and substance reasonably satisfactory to the
Seller.

 

8.             TERMINATION

 

8.1           Termination. 
This Agreement may be terminated and the transactions contemplated
hereby may be abandoned at any time prior to the Satisfaction Date (or the
Effective Time, in the case of clauses (a) and (b)):

 

(a)           by
mutual written consent of the Controlling Partnership and the Seller;

 

(b)           by
either the Controlling Partnership or the Seller if any Governmental Entity of
competent jurisdiction shall have issued an order, injunction, judgment, award
or decree or taken any other action permanently enjoining, restraining or
otherwise prohibiting the Purchase and Sale and such order, injunction,
judgment, award, decree or other action shall have become final and non-appealable;
provided, however, that the right to terminate this Agreement
pursuant to this Section 8.1(b) shall not be available to any party
who has not used its reasonable best efforts to cause such order, injunction,
judgment, award, decree or other action to be vacated, annulled or lifted;

 

(c)           by
either the Controlling Partnership or the Seller if the consent solicitation
contemplated by the Consent Solicitation Documents expires (and is not
extended) and the Requisite Unitholder Consent is not obtained; provided,
however, that the right to terminate this Agreement pursuant to this Section 8.1(c) shall
not be available to any party whose failure to fulfill any of its obligations
under this Agreement has been a principal cause of the failure of the Requisite
Unitholder Consent to be obtained;

 

(d)           by
either the Controlling Partnership or the Seller if the Satisfaction Date shall
not have occurred on or before October 31, 2009 (the “Outside Date”);
provided, however, that the right to terminate this Agreement
pursuant to this Section 8.1(d) shall not be available to any party
whose failure to fulfill any of its obligations under this Agreement has been a
principal cause of or has resulted in the failure of the Satisfaction Date to
occur on or before such date;

 

(e)           by
the Controlling Partnership if any of the conditions set forth in Section 7.1
or Section 7.2 shall become incapable of being satisfied on or before the
Outside Date; provided that if the condition giving rise to the right to
terminate under this Section 8.1(e) is incapable of being satisfied
due to a breach by the Seller of any of its representations, warranties,
covenants or agreements in this Agreement or the failure of any representation
or warranty of the Seller to be true, the Controlling Partnership shall not be
permitted to terminate this Agreement unless such breach or failure to be true
has not been cured prior to the earlier of (i) 30 days after the giving of
written notice by the Controlling Partnership to the Seller of such breach or
failure to be true and (ii) the Outside Date; provided, further,
that the right to terminate this Agreement pursuant to this Section 8.1(e) shall
not be available to the Controlling Partnership if the Controlling Partnership
is then in breach of any representation, warranty, covenant or agreement 

 

30

 

in
this Agreement that would cause any of the conditions set forth in Section 7.1
or Section 7.3 not to be satisfied; or

 

(f)            by
the Seller if any of the conditions set forth in Section 7.1 or Section 7.3
shall become incapable of being satisfied on or before the Outside Date; provided,
that if the condition giving rise to the right to terminate under this Section 8.1(f) is
incapable of being satisfied due to a breach by the Controlling Partnership,
the Purchaser or Holdings of any of their respective representations,
warranties, covenants or agreements in this Agreement or the failure of any
representation or warranty of the Controlling Partnership, the Purchaser or Holdings
to be true, the Seller shall not be permitted to terminate this Agreement
unless such breach or failure to be true has not been cured prior to the
earlier of (i) 30 days after the giving of written notice by the Seller to
the Controlling Partnership, the Purchaser or Holdings, as applicable, of such
breach or failure to be true and (ii) the Outside Date; provided, further
that the right to terminate this Agreement pursuant to this Section 8.1(f) shall
not be available to the Seller if the Seller is then in breach of any
representation, warranty, covenant or agreement in this Agreement that would
cause any of the conditions set forth in Section 7.1 or Section 7.2
not to be satisfied.

 

8.2           Effect of Termination.  In the event
of termination of this Agreement and the abandonment of the transactions
contemplated hereby pursuant to Section 8.1, this Agreement shall
forthwith become void and have no effect, and no party or any of their
respective affiliates, employees or representatives shall have any liability of
any nature whatsoever under this Agreement, or in connection with the
transactions contemplated by this Agreement, except that (i) Section 5.10
(Publicity), this Section 8.2 (Effect of Termination) and Section 9
(General Provisions) shall survive any termination of this Agreement and (ii) neither
the Seller, the Purchaser, the Controlling Partnership, the Group Partnerships
nor Holdings shall be relieved or released from any liabilities or damages
arising out of its willful or intentional breach of any provision of this
Agreement.

 

9.             GENERAL PROVISIONS

 

9.1           Nonsurvival of Representations,
Warranties and Agreements.  None of the representations,
warranties, covenants, agreements and provisions contained in this Agreement or
in any officer’s certificate delivered pursuant to this Agreement, including
any rights arising out of any breach of such representations, warranties,
covenants, agreements and provisions, shall survive following the Satisfaction
Date, except (i) those covenants and agreements contained in, Section 1.3,
Section 5.2, Section 5.4, Section 5.6, Section 5.7, Section 5.9,
Section 5.10, Section 5.11 and Section 5.12 shall survive until
the Effective Time, (ii) those covenants contained in Section 5.5
shall survive in accordance with the terms thereof, (iii) those covenants
and agreements contained in Section 6 shall survive until such time as the
beneficiaries thereof become entitled to the benefits of the covenants and
agreements contained in Section 5 of the Investment Agreement, and (iv) those
covenants and agreements contained in Section 1.1, Section 1.2, Section 1.4,
Section 5.4(c), Section 5.13 and Section 9 shall survive
indefinitely.

 

9.2           Expenses.  All costs and
expenses incurred in connection with this Agreement and the transactions contemplated
hereby shall be paid by the party incurring such costs and expenses; provided
that if the Effective Time occurs, (i) all costs and expenses incurred by
the Seller or the Seller GP in connection with this Agreement and the
transactions 

 

31

 

contemplated hereby shall
be paid by the Purchaser and (ii) all other costs and expenses incurred in
connection with this Agreement shall be paid by one or more Consolidated
Persons in which the Purchaser, directly or indirectly, has a 30% economic
interest (it being understood that no Class A common units in the Group
Partnership that are issued in accordance with Section 5.9(a)(iv)(C) or
Class B common units in the Group Partnerships shall be deemed to be outstanding
for purposes of calculating the Purchaser’s direct or indirect economic
interest in a Consolidated Person).

 

9.3           Notices.  All notices
and other communications hereunder shall be in writing and shall be deemed duly
given (a) on the date of delivery if delivered personally, or by
facsimile, upon confirmation of receipt, (b) on the first business day
following the date of dispatch if delivered by a recognized next-day courier
service or (c) on the fifth business day following the date of mailing if
delivered by registered or certified mail, return receipt requested, postage
prepaid.  All notices hereunder shall be
delivered as set forth below, or pursuant to such other instructions as may be
designated in writing by the party to receive such notice:

 

if
to the Controlling Partnership, to:

 

KKR & Co. L.P.

9 W. 57th Street, Suite 4200

New York, NY 10019

Attention:  David
J. Sorkin

Facsimile:  (212) 750-0003

 

with a
copy to (which shall not constitute notice):

 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, NY 
10017

Attention:  Alan
M. Klein

Joseph H. Kaufman

Facsimile:  (212)
455-2502

 

if to the Seller, to:

 

KKR Private Equity
Investors, L.P.

P.O. Box 255

Trafalgar Court, Les Banques

St. Peter Port, Guernsey GY1 3QL

Channel Islands

Attention: Christopher Lee

Facsimile: 
+44.1481.745.074

 

with a
copy to (which shall not constitute notice):

 

Bredin Prat

130 rue du Faubourg Saint Honoré

75008 Paris

France

Attention:  Patrick Dziewolski

 

32

 

     Benjamin Kanovitch

Facsimile: 
+33 (0)1.42.89.10.73

 

and

 

Cravath, Swaine &
Moore LLP

CityPoint | One Ropemaker
Street

London EC2Y 9HR

UK

Attention:   George
Stephanakis

Facsimile:   +44
(0)207 860 1150

 

and

 

Cravath, Swaine &
Moore LLP

825 Eighth Avenue

New York, NY 10019

Attention:   Sarkis
Jebejian

Facsimile:   (212)
474-3700

 

9.4           Interpretation. 
The words “hereof,” “herein” and “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and the
schedules hereto and not to any particular provision of this Agreement, and Section references
are to this Agreement unless otherwise specified.  Whenever the words “include,” “includes” or “including”
are used in this Agreement, they shall be deemed to be followed by the words “without
limitation.”  The word “or” shall be
inclusive and not exclusive.  The table
of contents and headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this Agreement.  This Agreement shall be construed without
regard to any presumption or interpretation against the party drafting or
causing any instrument to be drafted. 
All schedules accompanying this Agreement and all information
specifically referenced in any such schedule form an integral part of this
Agreement, and references to this Agreement include references to them.  The term “affiliate” has the meaning given to
it in Rule 12b-2 of the United States Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and the term “person” has the meaning
given to it in Sections 3(a)(9) and 13(d)(3) of the Exchange
Act.  Whenever this Agreement requires
the Seller or the Controlling Partnership to take, or not take, any action,
such requirement shall be deemed to include an undertaking on the part of the
Seller GP or the Controlling Partnership GP, as the case may be, to cause the
Seller or the Partnership to take, or not take, such action.  For the avoidance of doubt, no
representations, warranties, covenants or agreements set forth in this
Agreement are intended to apply to any portfolio companies of any of the KKR
Funds.

 

9.5           Amendment; Waiver. 
Subject to compliance with applicable law, this Agreement may be amended
by the parties hereto, by a written instrument authorized and executed on
behalf of the parties hereto (provided that in the case of the Seller in
addition to any other requirement under applicable law, any such amendment
shall be valid only if approved by all of the Independent Directors).  At any time prior to the Effective Time, each
party hereto may, to the extent legally allowed, (a) extend the time for
the performance of any of the 

 

33

 

obligations or other acts
of the other party hereto, (b) waive any inaccuracies in the
representations and warranties by the other parties hereto contained herein or
in any document delivered pursuant hereto and (c) waive compliance by the
other parties hereto with any of the agreements or conditions contained
herein.  Any agreement on the part of a
party hereto to any such extension or waiver shall be valid only if set forth
in a written instrument signed on behalf of such party (provided that in the
case of the Seller in addition to any other requirement under applicable law,
any such extension or waiver shall be valid only if approved by all of the
Independent Directors), but such extension or waiver or failure to insist on
strict compliance with an obligation, covenant, agreement or condition shall
not operate as a waiver of, or estoppel with respect to, any subsequent or
other failure.

 

9.6           Counterparts. 
This Agreement may be executed in counterparts, all of which shall be
considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party,
it being understood that all parties need not sign the same counterpart.

 

9.7           Entire Agreement. 
This Agreement (together with the documents, schedules and the
instruments referred to herein) constitutes the entire agreement and supersedes
all prior agreements and understandings, both written and oral, among the
parties with respect to the subject matter hereof.

 

9.8           Severability. 
Any term or provision of this Agreement which is determined by a court
of competent jurisdiction to be invalid or unenforceable in any jurisdiction
shall, as to that jurisdiction, be ineffective to the extent of such invalidity
or unenforceability without rendering invalid or unenforceable the remaining
terms and provisions of this Agreement or affecting the validity or
enforceability of any of the terms or provisions of this Agreement in any other
jurisdiction, and if any provision of this Agreement is determined to be so
broad as to be unenforceable, the provision shall be interpreted to be only so
broad as is enforceable, in all cases so long as neither the economic nor legal
substance of the transactions contemplated hereby is affected in any manner
materially adverse to any party.

 

9.9           Assignment; Third Party Beneficiaries. 
Neither this Agreement nor any of the rights, interests or obligations
of any party hereunder shall be assigned by any of the parties hereto (whether
by operation of law or otherwise) without the prior written consent of the
other parties hereto.  Subject to the
preceding sentence, this Agreement will be binding upon, inure to the benefit
of and be enforceable by the parties and their respective successors and
permitted assigns.  This Agreement
(including the documents and instruments referred to herein), except for the
provisions of Section 5.5 and Section 6, is not intended to, and does
not, confer upon any person other than the parties hereto any rights or
remedies hereunder.

 

9.10         Further Assurances.  The
Purchaser, the Controlling Partnership, the Seller and Holdings each agrees to
execute and deliver such other documents or agreements and to use their
respective reasonable best efforts to take such other actions as may be
reasonably necessary or desirable for the implementation of this Agreement and
the consummation of the transactions contemplated hereby.

 

34

 

9.11         Actions of the Seller.  The parties agree that, in accordance with Article 22(3) of
the Articles of Association of the Seller GP, during the period from the date
of this Agreement until the earlier of the Effective Time and the termination
of this Agreement in accordance with the terms hereof, the Independent
Directors, acting based on the affirmative vote of a majority of the
Independent Directors, shall be entitled to implement on behalf of the Seller
the transactions contemplated by this Agreement, to exercise the rights of the
Seller under this Agreement and to enforce this Agreement against the
Purchaser, the Controlling Partnership and/or Holdings.  The parties hereto further agree that (i) the
Seller shall not be deemed to have breached this Agreement unless such breach
was due to the taking of any action, or failure to take any action, by the
Independent Directors and (ii) the Controlling Partnership shall be deemed
to have breached this Agreement if the Controlling Partnership or any of its
affiliates (other than the Seller or the Seller GP) takes any action, or fails
to take any action, that causes the Seller to breach this Agreement; provided
that if the taking of such action, or failure to take such action, would not
reasonably have been expected to cause the Seller to breach this Agreement, the
Controlling Partnership shall not be deemed to have breached this Agreement as
a result of the taking of, or failure to take, such action other than for
purposes of determining whether the condition set forth in Section 7.3(b) has
been satisfied and the Controlling Partnership shall have no liability to the
Seller as a result of the taking of, or failure to take, such action.

 

9.12         Governing
Law.  This Agreement shall be
governed and construed in accordance with the laws of the State of New York.

 

9.13         Submission
to Jurisdiction.  Each party
irrevocably submits to the jurisdiction of (a) the Supreme Court of the
State of New York, New York County, and (b) the United States District
Court for the Southern District of New York, for the purposes of any suit,
action or other proceeding arising out of this Agreement or any transaction
contemplated hereby.  Each party agrees
to commence any action, suit or proceeding relating hereto either in the United
States District Court for the Southern District of New York or, if such suit,
action or other proceeding may not be brought in such court for reasons of
subject matter jurisdiction, in the Supreme Court of the State of New York, New
York County.  Each party irrevocably and
unconditionally waives any objection to the laying of venue of any action, suit
or proceeding arising out of this Agreement or any transaction contemplated
hereby in (i) the Supreme Court of the State of New York, New York County,
or (ii) the United States District Court for the Southern District of New
York, and hereby further irrevocably and unconditionally waives and agrees not
to plead or claim in any such court that any such action, suit or proceeding
brought in any such court has been brought in an inconvenient forum.  Each party further irrevocably consents to
the service of process out of any of the aforementioned courts in any such
suit, action or other proceeding by the mailing of copies thereof by mail to
such party at its address set forth in this Agreement, such service of process
to be effective upon acknowledgment of receipt of such registered mail; provided
that nothing in this Section 9.13 shall affect the right of any party to
serve legal process in any other manner permitted by law.  The consent to jurisdiction set forth in this
Section 9.13 shall not constitute a general consent to service of process
in the State of New York and shall have no effect for any purpose except as
provided in this Section 9.13.  The
parties agree that a final judgment in any such suit, action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.

 

35

 

9.14         Enforcement.  The parties agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms on a timely basis or were
otherwise breached.  It is accordingly
agreed that the parties shall be entitled to an injunction or other equitable
relief to prevent breaches of this Agreement and to enforce specifically the
terms and provisions of this Agreement in any court identified in Section 9.13,
this being in addition to any other remedy to which they are entitled at law or
in equity.

 

9.15         WAIVER
OF JURY TRIAL.  EACH OF THE PARTIES
HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING DIRECTLY INVOLVING ANY
MATTERS (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING
OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

9.16         Effect on Original Agreement.  The parties agree that this Agreement amends
and restates the Original Agreement in its entirety and upon execution and
delivery of this Agreement by the parties hereto the Original Agreement shall
cease to have any force or effect and no person shall have any rights or
obligations with respect thereto.

 

[Remainder of Page Intentionally Left Blank]

 

36

 

IN WITNESS WHEREOF, the
parties hereto have executed and delivered this Agreement as of the date first
above written.

 

	
   

  	
  KKR & CO. L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  KKR MANAGEMENT LLC, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ WILLIAM J. JANETSCHEK

  
	
   

  	
   

  	
  Name: William J. Janetschek

  
	
   

  	
   

  	
  Title:   Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KKR PRIVATE EQUITY INVESTORS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KKR GUERNSEY GP LIMITED, its general partner
  (Registration No. 44666)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ KENDRA DECIOUS

  
	
   

  	
   

  	
  Name: Kendra Decious

  
	
   

  	
   

  	
  Title:   Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KKR PEI ASSOCIATES, L.P., in its capacity as general partner of KKR
  PEI Investments, L.P. (solely for purposes of Section 1.4)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  KKR PEI GP LIMITED, its general partner (Registration No. 44667)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ KENDRA DECIOUS

  
	
   

  	
   

  	
  Name: Kendra Decious

  
	
   

  	
   

  	
  Title:   Vice President

  

 

[PURCHASE AND SALE AGREEMENT SIGNATURE PAGE]

 

 

	
   

  	
  KKR HOLDINGS L.P. (solely for purposes of Section 4,
  Section 5.4, Section 5.7, Section 5.10(b) and
  Section 9.10)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  KKR HOLDINGS GP LIMITED, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ WILLIAM J. JANETSCHEK

  
	
   

  	
   

  	
  Name: William J. Janetschek

  
	
   

  	
   

  	
  Title:   Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KKR FUND HOLDINGS L.P. (solely for purposes of Section 6)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  KKR & CO. L.P., its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  KKR MANAGEMENT LLC, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ WILLIAM J. JANETSCHEK

  
	
   

  	
   

  	
  Name: William J. Janetschek

  
	
   

  	
   

  	
  Title:   Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KKR MANAGEMENT HOLDINGS L.P. (solely for purposes of Section 6)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  KKR MANAGEMENT HOLDINGS CORP., its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ WILLIAM J. JANETSCHEK

  
	
   

  	
   

  	
  Name: William J. Janetschek

  
	
   

  	
   

  	
  Title:   Chief Financial
  Officer

  

 

[PURCHASE AND SALE AGREEMENT SIGNATURE PAGE]

 

 

	
   

  	
  KKR GROUP HOLDINGS L.P. (solely for purposes of Section 1.1,
  Section 1.2, Section 3 and Section 9.2)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  KKR GROUP LIMITED, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ WILLIAM J. JANETSCHEK

  
	
   

  	
   

  	
  Name: William J. Janetschek

  
	
   

  	
   

  	
  Title:   Director

  

 

[PURCHASE AND SALE AGREEMENT SIGNATURE PAGE]

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