Document:

Exhibit 10.6

 

FORM OF EXCHANGE AGREEMENT

 

EXCHANGE
AGREEMENT (the “Agreement”), dated as of
                     ,
20    , among KKR Management Holdings
L.P., KKR Fund Holdings L.P., KKR Holdings L.P. and KKR & Co. L.P.

 

WHEREAS,
this Agreement governs the terms and conditions for the exchange of certain
Group Partnership Units for Common Units, on the terms and subject to the
conditions set forth herein;

 

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

 

NOW,
THEREFORE, in consideration of the mutual covenants and undertakings contained
herein and for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE I.

DEFINITIONS

 

Section 1.1                                      Definitions.

 

The
following definitions shall be for all purposes, unless otherwise clearly
indicated to the contrary, applied to the terms used in this Agreement.

 

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

 

“Base
Exchange” has the meaning set forth in Section 2.1(a)(i) of this
Agreement.

 

“Business
Day” means each day that is not a Saturday, Sunday or other day on which
banking institutions in the Cayman Islands and New York, New York are
authorized or required by law to close.

 

“Charitable
Exchange” means a direct or indirect exchange of Group Partnership Units
pursuant to this Agreement by a KKR Holdings Affiliated Person for the purpose
of making a gratuitous transfer of any Common Units received in the exchange to
a Charity.

 

“Charity”
means any organization that is organized and operated for a purpose described
in Section 170(c) of the Code (determined without reference to Section 170(c)(2)(A) of
the Code) and described in Sections 2055(a) and 2522 of the Code.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

 

“Common
Unit” means a partnership interest in the Issuer representing a fractional
part of the partnership interests in the Issuer of all limited partners of the
Issuer having the rights and obligations specified with respect to Common Units
in the Issuer Partnership Agreement.

 

“Contribution
Transaction” has the meaning ascribed to such term in the Investment
Agreement.

 

“Corporate
Holdco” means a corporation (or other entity classified as a corporation
for United States federal income tax purposes) that (i) is wholly owned by
a KKR Holdings Affiliated Person, (ii) owns solely Group Partnership I
Units, (iii) was formed solely for the purpose of owning such Group
Partnership I Units, and (iv) has never owned any assets other than Group
Partnership I Units or engaged in any other business, or such other corporation
designated a Corporate Holdco by a Group Partnership General Partner.

 

“Exchange”
means a Charitable Exchange, a Non-U.S. Exchange or a Base Exchange, as the
case may be.

 

“Exchange
Rate” means the number of Common Units for which a Group Partnership Unit
is entitled to be exchanged.  On the date of this Agreement, the Exchange
Rate shall be 1 for 1, which Exchange Rate shall be subject to modification as
provided in Section 2.4.

 

“Fair
Market Value” means, as of a given time, (i) if Common Units are
traded on a securities exchange, then the volume-weighted average price of a
Common Unit based on the trades during the most recent completed trading day as
reported by the principal securities exchange on which Common Units are traded
and (ii) if Common Units are not traded on a securities exchange, the fair
market value of such asset as reasonably determined by the conflicts committee
of the board of directors of the Issuer General Partner.

 

“Group
Partnership I” means KKR Management Holdings L.P., a Delaware limited
partnership, and any successor thereto.

 

“Group
Partnership I General Partner” means Group Partnership Holdco, and any
successor thereto.

 

“Group
Partnership I Units” means the Class A partnership units of Group
Partnership I (and partnership units of any subsequently formed Group
Partnership whose interests are held by the Issuer through a Group Partnership
HoldCo).

 

“Group
Partnership II” means KKR Fund Holdings L.P., a Cayman limited partnership,
and any successor thereto.

 

“Group Partnership II Units” means the Class A
partnership units of Group Partnership II (and partnership units of any
subsequently formed Group Partnership whose interests the Issuer holds directly
or indirectly through entities that are transparent for U.S. federal income tax
purposes).

 

2

 

“Group
Partnership Agreements” means, collectively, the Amended and Restated
Limited Partnership Agreement of Group Partnership I and the Amended and
Restated Limited Partnership Agreement of Group Partnership II (and the
partnership agreement then in effect of any future partnership designated as a
Group Partnership), as each may be amended, supplemented or restated from time
to time.

 

“Group
Partnership General Partners” means Group Partnership I General Partner and
Issuer (and the general partner of any future partnership designated as a Group
Partnership).

 

“Group
Partnership HoldCo” means Management Holdings Corp. (and any future entity
that is classified as an association taxable as a corporation for U.S. federal
income tax purposes, is directly or indirectly owned by the Issuer and formed
for the purposes of holding partnership units of a Group Partnership).

 

“Group
Partnership Unit” means, collectively, one partnership unit in each of
Group Partnership I and Group Partnership II (and any future partnership
designated as a Group Partnership) issued under its respective Group
Partnership Agreement.

 

“Group
Partnerships” means, collectively, Group Partnership I and Group
Partnership II (and any future partnership designated as a Group Partnership).

 

“Issuer”
means KKR & Co. L.P., a Delaware limited partnership, and any successor
thereto.

 

“Issuer
General Partner” means KKR Management LLC, a Delaware limited partnership,
and any successor thereto.

 

“Insider
Trading Policy” means the Dealing Code of the Issuer applicable to the
directors and executive officers of its general partner, as such insider
trading policy may be amended, supplemented or restated from time to time.

 

“Issuer
Partnership Agreement” means the Amended and Restated Agreement of Limited
Partnership of the Issuer to be dated substantially concurrently with the
consummation of the Contribution Transaction, as such agreement of limited
partnership may be amended, supplemented or restated from time to time.

 

“Investment
Agreement” means the amended and restated investment agreement, dated October 1,
2009, by and among the Issuer, KKR Private Equity Investors, L.P., Group
Partnership I, Group Partnership II, and KKR Holdings, as amended from time to
time.

 

“KKR
Holdings” means KKR Holdings L.P., a limited partnership formed under the
laws of the Cayman Islands, and any successor thereto, and its Subsidiaries.

 

“KKR
Holdings Affiliated Person” means each Person that is as of the date of
this Agreement or becomes from time to time (i) a general partner or a
limited partner of KKR Holdings pursuant to the terms of the KKR Holdings
Partnership Agreement or (ii) a general partner, limited partner or holder
of any other type of equity interest of any Person included in clause (i) above.

 

3

 

“KKR
Holdings Partnership Agreement” means the Amended and Restated Limited
Partnership Agreement of KKR Holdings, as amended, supplemented or restated
from time to time.

 

“Non-U.S.
Exchange” means a direct or indirect exchange of Group Partnership Units
pursuant to this Agreement by a Non-U.S. KKR Holdings Affiliated Person.

 

“Non-U.S.
KKR Holdings Affiliated Person” means a KKR Holdings Affiliated Person that
is not (i) an individual citizen or resident of the United States, (ii) a
corporation (or other entity classified as a corporation for United States
federal income tax purposes) created or organized in or under the laws of the
United States (or any political subdivision thereof), or (iii) a
partnership (or other entity classified as a partnership for United State
federal income tax purposes) created or organized in or under the laws of the
United States (or any political subdivision thereof) or that has at least one
partner who is an individual citizen or resident of the United States.

 

“Person”
means an individual, corporation, limited liability company, partnership, joint
venture, trust, estate, unincorporated organization, association (including any
group, organization, co-tenanacy, plan, board, council or committee),
government (including a country, state, county, or any other governmental or
political subdivision, agency or instrumentality thereof) or other entity (or
series thereof).

 

“Quarter”
means, unless the context requires otherwise, a fiscal quarter of the Issuer.

 

“Quarterly
Exchange Date” means, unless the Issuer cancels such Quarterly Exchange
Date pursuant to Section 2.9 hereof, the date that is the later to occur
of either: (1) the second Business Day after the date on which the Issuer
makes a public news release of its quarterly earnings for the prior Quarter or (2) the
first day of each Quarter that directors and executive officers of the Issuer
General Partner are permitted to trade under the Insider Trading Policy.

 

“Sale
Transaction” has the meaning set forth in Section 2.9 of this
Agreement.

 

“Subsidiaries”
means any corporation, partnership, joint venture or other legal entity of
which KKR Holdings (either alone or through or together with any other
subsidiary), owns, directly or indirectly, 50% or more of the stock or other
equity interests.

 

“Transfer
Agent” means such bank, trust company or other Person as shall be appointed
from time to time by the Issuer pursuant to the Issuer Partnership Agreement to
act as registrar and transfer agent for the Common Units.

 

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ARTICLE II.

EXCHANGE OF GROUP PARTNERSHIP UNITS

 

Section 2.1                                      Exchange of
Group Partnership Units.

 

(a)                                  Subject to the
provisions of the Group Partnership Agreements and the Issuer Partnership
Agreement and to the provisions of Section 2.2 hereof, KKR Holdings or a
KKR Holdings Affiliated Person shall be entitled on any Quarterly Exchange Date
to surrender Group Partnership Units held by KKR Holdings or a KKR Holdings
Affiliated Person as follows; provided that any such exchange is for a minimum
of the lesser of [1,000] Group Partnership Units or all of the Group
Partnership Units held by KKR Holdings.

 

(i)                                     KKR Holdings or a KKR
Holdings Affiliated Person may surrender Group Partnership Units to the Group
Partnerships in exchange for either (at the option of the Group Partnerships) (x) the
delivery by the Group Partnerships of a number of Common Units (provided by the
Issuer) equal to the number of Group Partnership Units surrendered multiplied
by the Exchange Rate or (y) cash in an amount equal to the Fair Market
Value on the date of such exchange of the Common Units that KKR Holdings or a
KKR Holdings Affiliated Person would receive pursuant to clause (x) (any
such exchange, a “Base Exchange”). 
Simultaneous with any such Exchange pursuant to clause (x) above,
each Group Partnership shall issue a number of its Group Partnership Units to
its respective Group Partnership General Partner equal to the number of Group
Partnership Units surrendered to such Group Partnership.  Any election by the Group Partnerships to
deliver cash to KKR Holdings or a KKR Holdings Affiliated Person, as the case
may be, pursuant to clause (y) above, shall be subject to the prior
approval of the conflicts committee of the board of directors of the Issuer
General Partner.

 

(ii)                                  For purposes of making a
Charitable Exchange or a Non-U.S. Exchange, a KKR Holdings Affiliated Person
may surrender Group Partnership Units to the Issuer in exchange for the
delivery of a number of Common Units equal to the number of Group Partnership
Units surrendered multiplied by the Exchange Rate, provided, however,
the Issuer may instead require that the Group Partnership I units the KKR
Holdings Affiliated Person intends to surrender be owned by one or more
Corporate Holdcos prior to surrender, in which case the number of Common Units
delivered pursuant to the Exchange will be equal to the total Group Partnership
Units that are surrendered, taking into account those collectively owned by the
Corporate Holdcos whose interest are surrendered, multiplied by the Exchange
Rate.

 

(b)                                 Immediately
following any Charitable Exchange or Non-U.S. Exchange pursuant to Section 2.1(a)(ii) above,
the Issuer shall contribute (i) any Group Partnership I Units or interests
in Corporate Holdcos surrendered pursuant to such Exchange to the Group
Partnership Holdco that currently holds interests in the issuer of the Group
Partnership I Units that have been surrendered or are held by the Corporate
Holdco whose interests have been surrendered, and (ii) any Group
Partnership II Units surrendered pursuant to such Exchange to the issuer of the
Group Partnership II Units surrendered.

 

(c)                                  Where KKR
Holdings or a KKR Holdings Affiliated Person has exercised its right to
surrender its Group Partnership Units to the Group Partnerships in a Base
Exchange, the Group Partnership General Partners shall have a superseding right
to acquire such interests for an amount of cash or, at the option of the Group
Partnership General Partners, Common

 

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Units
equal to the amount of cash or Common Units (provided by the Issuer) that would
be received pursuant to the Base Exchange.

 

(d)                                 On the date the
Exchange of the Group Partnership Units is effective, all rights of KKR
Holdings or a KKR Holdings Affiliated Person as holder of such Group
Partnership Units shall cease, and KKR Holdings or such KKR Holdings Affiliated
Person shall be treated for all purposes as having become the Record Holder (as
defined in the Issuer Partnership Agreement) of the Common Units which are the
subject of the Exchange and shall be admitted as a Limited Partner (as defined
in the Issuer Partnership Agreement) of the Issuer in accordance and upon
compliance with Section [  ] of the
Issuer Partnership Agreement.

 

(e)                                  Immediately
prior to the time Group Partnership Units are surrendered for Exchange, KKR
Holdings shall assign its rights together with its obligations hereunder in
connection with an Exchange to each KKR Holdings Affiliated Person beneficially
owning such Group Partnership Units.

 

(f)                                    For the
avoidance of doubt, any Exchange of Group Partnership Units shall be subject to
the provisions of the Group Partnership Agreements.

 

Section 2.2                                      Exchange
Procedures.

 

(a)                                  KKR Holdings or
a KKR Holdings Affiliated Person may exercise the right to Exchange Group
Partnership Units set forth in Section 2.1(a) above by providing
written notice of the Exchange at least sixty (60) days prior to the applicable
Quarterly Exchange Date or within such shorter period of time as may be agreed
by the parties hereto (i) in the case of a Base Exchange, to each Group
Partnership General Partner and the Issuer substantially in the form of Exhibit A
hereto, and (ii) in the case of a Charitable Exchange or Non-U.S.
Exchange, to the Issuer substantially in the form of Exhibit B hereto.
Such notice shall be duly executed by such holder or such holder’s duly
authorized attorney in respect of the Group Partnership Units to be Exchanged
and delivered during normal business hours at the principal executive offices
of the Group Partnership General Partners and/or the registered office of the
Issuer, as applicable.

 

(b)                                 Each KKR
Holdings Affiliated Person beneficially owning the Group Partnership Units that
are subject to Exchange pursuant to Section 2.1(a) above shall execute
a written assignment and acceptance agreement with respect to such Group
Partnership Units prior to such Exchange, which assignment and acceptance
agreement shall be delivered during normal business hours at the registered
office of KKR Holdings.

 

(c)                                  As promptly as
practicable following the surrender for Exchange of Group Partnership Units in
the manner provided in this Article II, the Issuer, in the case of a Base
Exchange shall deliver or cause to be delivered at the principal executive
offices of the Group Partnership or at the office of the Transfer Agent the
number of Common Units issuable upon such Exchange, issued in the name of KKR
Holdings or its designee, and in the case of a Charitable Exchange or Non-U.S.
Exchange shall deliver or cause to be delivered at the principal executive
offices of KKR Holdings or at the office of the Transfer Agent the number of
Common Units issuable upon such Exchange, issued in the name of KKR Holdings or
its designee.

 

6

 

(d)                                 The Issuer, in
the case of a Charitable Exchange or Non-U.S. Exchange, or the Group
Partnerships, in the case of a Base Exchange, may adopt reasonable procedures
for the implementation of the exchange provisions set forth in this Article II,
including, without limitation, procedures for the giving of notice of an
election for Exchange.

 

Section 2.3                                      Blackout
Periods and Ownership Restrictions.  Notwithstanding anything to the contrary, KKR
Holdings or a KKR Holdings Affiliated Person shall not be entitled to Exchange
Group Partnership Units, and the Issuer and the Group Partnerships shall have
the right to refuse to honor any request for Exchange of Group Partnership
Units, (i) at any time or during any period if the Issuer or the Group
Partnerships shall determine, based on the advice of counsel (which may be
inside counsel), that there may be material non-public information that may
affect the trading price per Common Unit at such time or during such period, (ii) if
such Exchange would be prohibited under applicable law or regulation, (iii) to
the extent such KKR Holdings Affiliated Person would be prohibited from holding
Common Units under the Issuer Partnership Agreement, or (iv) to the extent
such Exchange would not be permitted under the policies and procedures
established by the general partner of KKR Holdings.

 

Section 2.4                                      Splits,
Distributions and Reclassifications.  The Exchange Rate
shall be adjusted accordingly if there is: (1) any subdivision (by split,
distribution, reclassification, recapitalization or otherwise) or combination
(by reverse split, reclassification, recapitalization or otherwise) of the
Group Partnership Units that is not accompanied by an identical subdivision or
combination of the Common Units; or (2) any subdivision (by split,
distribution, reclassification, recapitalization or otherwise) or combination
(by reverse split, reclassification, recapitalization or otherwise) of the
Common Units that is not accompanied by an identical subdivision or combination
of the Group Partnership Units. In the event of a reclassification or other
similar transaction as a result of which the Common Units are converted into
another security, then KKR Holdings or a KKR Holdings Affiliated Person, as the
case may be, shall be entitled to receive upon Exchange the amount of such
security that KKR Holdings or such KKR Holdings Affiliated Person would have
received if such Exchange had occurred immediately prior to the effective date
of such reclassification or other similar transaction. Except as may be
required in the immediately preceding sentence, no adjustments in respect of
distributions shall be made upon the Exchange of any Group Partnership Unit.

 

Section 2.5                                      Common Units to
be Issued.  The Issuer covenants that if any Common
Units require registration with or approval of any governmental authority under
any foreign, U.S. federal or state law before such Common Units may be issued
upon Exchange pursuant to this Article II, the Issuer shall use
commercially reasonable efforts to cause such Common Units to be duly
registered or approved, as the case may be. The Issuer shall use commercially
reasonable efforts to list the Common Units required to be delivered upon
Exchange prior to such delivery upon each national securities exchange or inter-dealer
quotation system upon which the outstanding Common Units may be listed or
traded at the time of such delivery. Nothing contained herein shall be
construed to preclude the Issuer or the Group Partnerships from satisfying
their obligations in respect of the Exchange of the Group Partnership Units by
delivery of Common Units which are held in the treasury of the Issuer or the
Group Partnerships or any of their subsidiaries.

 

7

 

Section 2.6                                      Taxes.  The delivery
of Common Units upon Exchange of Group Partnership Units shall be made without
charge to KKR Holdings or a KKR Holdings Affiliated Person for any stamp or
other similar tax in respect of such issuance.

 

Section 2.7                                      Restrictions.  The provisions of Section 7.05 of the
Group Partnership Agreements shall apply, mutatis mutandis, to any Common Units
issued upon Exchange of Group Partnership Units.

 

Section 2.8                                      Disposition of
Common Units Issued.   KKR
Holdings covenants to cause any KKR Holdings Affiliated Person receiving Common
Units as a result of an Exchange, other than a Charitable Exchange or Non-U.S.
Exchange, under this Agreement (i) to use reasonable best efforts to sell
or otherwise dispose of any Common Units received in such an Exchange within ten
(10) days of the receipt thereof or any specified shorter period as the
Issuer General Partner determines to be in the best interests of the Issuer, (ii) to
use reasonable best efforts to ensure that neither such KKR Holdings Affiliated
Person’s spouse nor any grantor trust which is treated as owned by such KKR
Holdings Affiliated Person or his or her spouse owns any Common Units and (iii) to
agree that no other Common Units will be acquired or held by such KKR Holdings
Affiliated Person during such period other than through a Qualifying Entity.
Any KKR Holdings Affiliated Person who receives Common Units as a result of an
Exchange under this Agreement and who holds any such Common Units on the last
day of the ten (10) day or shorter period referred to above shall agree to
cause all such Common Units to be transferred immediately to a Qualifying
Entity. For the purposes of this Agreement, a “Qualifying Entity” means a
partnership, trust or other entity (other than a “grantor trust” or an entity
otherwise disregarded as an entity separate from its owner for United States
federal income tax purposes). For the avoidance of doubt, nothing contained
herein shall prohibit any KKR Holdings Affiliated Person from owning an
interest in a Qualifying Entity that owns Common Units.

 

Section 2.9                                      Subsequent
Offerings.  The Issuer
may from time to time provide the opportunity for KKR Holdings to sell its
Group Partnership Units to the Issuer, the Group Partnerships or any of their
subsidiaries on terms no more beneficial than an Exchange (a “Sale
Transaction”); provided that no Sale Transaction shall occur unless the
Issuer cancels the nearest Quarterly Exchange Date scheduled to occur in the
same fiscal year of the Issuer as such Sale Transaction.  In connection
with a Sale Transaction, KKR Holdings must provide notice to Issuer at least
thirty (30) days prior to the cash settlement of such Sale Transaction in
respect of the Group Partnership Units to be sold or within such shorter
period of time as may be agreed by the parties hereto. Such notice shall be
delivered during normal business hours at the principal executive offices of
the Issuer.  For the avoidance of doubt, the total aggregate number of
Quarterly Exchange Dates and Sale Transactions occurring during any fiscal year
of the Issuer shall not exceed four (4).

 

ARTICLE III.

GENERAL PROVISIONS

 

Section 3.1                                      Amendment.  The provisions of this Agreement may be
amended by the affirmative vote or written consent of each of the Issuer, the
Group Partnerships and KKR Holdings.

 

8

 

Section 3.2                                    Addresses and
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,
by electronic mail (delivery receipt requested) 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 as
specified in a notice given in accordance with this Section 3.2):

 

(a) 
If to the Group Partnership General Partners, to:

 

9
West 57th Street, Suite 4200

New
York, NY 10019

Attention:
Chief Financial Officer

Fax:
212-750-0003

 

(b) 
If to Group Partnership I or Group Partnership II to:

 

9
West 57th Street, Suite 4200

New
York, NY 10019

Attention:
Chief Financial Officer

Fax:
212-750-0003

 

(c) 
If to KKR Holdings, to:

 

9
West 57th Street, Suite 4200

New
York, NY 10019

Attention:
Chief Financial Officer

Fax:
212-750-0003

 

(d) If
to the Issuer, to:

 

9
West 57th Street, Suite 4200

New
York, NY 10019

Attention:
Chief Financial Officer

Fax:
212-750-0003

 

Section 3.3                                  Further Action. The parties
shall execute and deliver all documents, provide all information and take or
refrain from taking action as may be necessary or appropriate to achieve the
purposes of this Agreement.

 

Section 3.4                                  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.  KKR
Holdings may enforce the terms of this agreement in the name of or on behalf of
any KKR Holdings Affiliated Person. 
Other than as expressly provided herein, nothing in this Agreement will
be construed to give any

 

9

 

person
other than the parties to this Agreement any legal or equitable right, remedy,
or claim under or with respect to this Agreement or any provision of this
Agreement.

 

Section 3.5                                    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 3.6                                    Integration. 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 3.7                                    Waiver. No failure by
any party to insist upon the strict performance of any covenant, duty,
agreement or condition of this Agreement or to exercise any right or remedy
consequent upon a breach thereof shall constitute waiver of any such breach of
any other covenant, duty, agreement or condition.

 

Section 3.8                                    Submission to
Jurisdiction; Waiver of Jury Trial.

 

(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 the validity, scope and enforceability of this arbitration
provision) shall be finally settled by arbitration conducted by a single
arbitrator in New York in accordance with the then-existing Rules of
Arbitration of the International Chamber of Commerce. 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.  Performance under this Agreement
shall continue if reasonably possible during any arbitration proceedings.

 

(b)                                 Notwithstanding
the provisions of Section 3.8(a), in the case of matters relating to a
Charitable Exchange or Non-U.S. Exchange, the Issuer may bring, and in the case
of matters relating to a Base Exchange, KKR Holdings may cause any Group
Partnership to bring, on behalf of the Issuer or such Group Partnership or on
behalf of any KKR Holdings Affiliated Person, 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, and/or enforcing an arbitration award and, for the purposes of this
paragraph.

 

(c)                                  Notwithstanding
any provision of this Agreement to the contrary, this Section 3.8 shall be
construed to the maximum extent possible to comply with the laws of the State
of Delaware, including the Delaware Uniform Arbitration Act (10 Del. C. § 5701
et  seq.) (the “Delaware Arbitration Act”).  If, nevertheless,
it shall be determined by a court of competent

 

10

 

jurisdiction
that any provision or wording of this Section 3.8, including any rules of
the International Chamber of Commerce, shall be invalid or unenforceable under
the Delaware Arbitration Act, or other applicable law, such invalidity shall
not invalidate all of this Section 3.8.  In that case, this Section 3.8
shall be construed so as to limit any term or provision so as to make it valid
or enforceable within the requirements of the Delaware Arbitration Act or other
applicable law, and, in the event such term or provision cannot be so limited,
this Section 3.8 shall be construed to omit such invalid or unenforceable
provision.

 

Section 3.9                                    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 3.9.

 

Section 3.10                             Tax Treatment. To the extent
this Agreement imposes obligations upon a particular Group Partnership or
either Group Partnership General Partner, this Agreement shall be treated as
part of the relevant Group Partnership Agreement as described in Section 761(c) of
the Code and Sections 1.704-1(b)(2)(ii)(h) and 1.761-1(c) of the
Treasury Regulations. The parties shall report any Base Exchange consummated
hereunder (pursuant to which Common Units are delivered pursuant to Section 2.1(a)(i) or
Section 2.1(c) hereof), in the case of Group Partnership I (or
any other Group Partnership owned directly or indirectly by the Issuer through
a Group Partnership Holdco), as a taxable sale of Group Partnership Units by a
KKR Holdings Affiliated Person to Group Partnership HoldCo (or the partner of
such other Group Partnership owned directly or indirectly by the Issuer through
a Group Partnership Holdco) and, in the case of Group Partnership II (or any
other Group Partnership owned directly by the Issuer), as a contribution to the
Issuer described in Section 721(a) of the Code, and no party shall
take a contrary position on any income tax return, amendment thereof or
communication with a taxing authority. 
The parties shall report any Charitable Exchange or Non-U.S. Exchange
consummated pursuant to Section 2.1(a)(ii) hereof as a contribution
of (i) Group Partnership I Units or Corporate Holdco interests, and (ii) Group
Partnership II Units to the Issuer described in Section 721(a) of the
Code, followed by a tax free contribution of such Group Partnership I Units or
Corporate Holdco interests to the appropriate Group Partnership Holdco pursuant
to Section 351 of the Code, and no party shall take a contrary position on
any income tax return, amendment thereof or communication with a taxing
authority.

 

Section 3.11                             Applicable Law. This
Agreement shall be governed by, and construed in accordance with, the law of
the State of Delaware.

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and
delivered, all as of the date first set forth above.

 

[Signature Page Follows]

 

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  KKR &
  Co. L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KKR
  Management LLC, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KKR
  MANAGEMENT HOLDINGS L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  KKR
  Management Holdings Corp., its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KKR
  FUND HOLDINGS L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

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

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KKR
  HOLDINGS L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  KKR
  Holdings GP Limited, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

EXHIBIT A

 

[FORM OF]

NOTICE OF BASE EXCHANGE

 

KKR &
Co. L.P.

9
West 57th Street, Suite 4200

New
York, NY 10019

Attention:
[Chief Financial Officer]

Fax:
212-750-0003

 

Reference
is hereby made to the Exchange Agreement, dated as of
                        ,     (the “Exchange Agreement”), among
KKR Private Equity Investors, L.P.,  KKR
Management Holdings L.P., KKR Fund Holdings L.P., KKR Holdings L.P., and KKR &
Co. L.P. as amended from time to time.  Capitalized terms used but not
defined herein shall have the meanings given to them in the Exchange Agreement.

 

[                          ]
(the “Exchanging KKR Holdings Affiliated Person”) desires to Exchange the
number of Group Partnership Units set forth below in a Base Exchange.

 

Number
of Group Partnership Units to be Exchanged:

 

The
Exchanging KKR Holdings Affiliated Person (1) hereby represents that the
Group Partnership Units set forth above shall immediately prior to the Exchange
be owned by it, (2) hereby gives notice of its desire to Exchange such
Group Partnership Units for Common Units as set forth in the Exchange
Agreement, (3) hereby irrevocably constitutes and appoints any officer of
the Group Partnerships, either Group Partnership General Partner or the Issuer
General Partner as its attorney, with full power of substitution, to Exchange
said Group Partnership Units on the books of the Group Partnerships for Common
Units on the books of the Issuer, with full power of substitution in the
premises.

 

The
Exchanging KKR Holdings Affiliated Person covenants (i) to use reasonable
best efforts to sell or otherwise dispose of any Common Units received in such
an Exchange within ten (10) days of the receipt thereof or any specified
shorter period as the general partner of the Issuer determines to be in the
best interests of the Issuer, (ii) to use reasonable best efforts to
ensure that neither such person’s spouse nor any grantor trust which is treated
as owned by such person or his or her spouse owns any Common Units and (iii) to
agree that no other Common Units will be acquired or held by such person during
such period other than through a Qualifying Entity.  Such exchanging KKR Holdings Affiliated
Person who receives Common Units as a result of an Exchange under this
Agreement and who holds any such Common Units on the last day of the ten (10) day
or shorter period referred to above agrees to cause all such Common Units to be
transferred immediately to a Qualifying Entity. For the purposes of the
Exchange Agreement, a “Qualifying Entity” means a partnership, trust or other
entity (other than an entity disregarded as an entity separate from its owner
for United States federal income tax purposes). For the

 

 

avoidance
of doubt, nothing contained herein shall prohibit any Exchanging KKR Holdings
Affiliated Person from owning an interest in a Qualifying Entity that owns
Common Units.

 

IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this
Notice of Exchange to be executed and delivered by the undersigned or by its
duly authorized attorney.

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
						

 

 

EXHIBIT B

 

[FORM OF]

NOTICE OF CHARITABLE OR NON-U.S. EXCHANGE

 

KKR
Private Equity Investors, L.P.

c/o
KKR & Co. L.P.

9
West 57th Street, Suite 4200

New
York, NY 10019

Attention:
[Chief Financial Officer]

Fax:
212-750-0003

 

Reference
is hereby made to the Exchange Agreement, dated as of
                        ,   (the “Exchange Agreement”), among KKR
Private Equity Investors, L.P., KKR Management Holdings L.P., KKR Fund Holdings
L.P., KKR Holdings L.P., and KKR & Co. L.P. as amended from time to
time.  Capitalized terms used but not defined herein shall have the
meanings given to them in the Exchange Agreement.

 

[                             ]
(the “Exchanging KKR Holdings Affiliated Person”) desires to Exchange the
number of Group Partnership Units set forth below in a Charitable or Non-U.S.
Exchange, as indicated.

 

Number
of Group Partnership Units to be Exchanged:

 

Type
of Exchange (Charitable or Non-U.S. Exchange):

 

The
Exchanging KKR Holdings Affiliated Person (1) hereby represents that the
Group Partnership Units set forth above shall immediately prior to the Exchange
be owned by it, (2) hereby gives notice of its desire to Exchange such
Group Partnership Units for Common Units as set forth in the Exchange
Agreement, (3) hereby irrevocably constitutes and appoints any officer of
the Group Partnerships, either Group Partnership General Partner or the Issuer
General Partner as its attorney, with full power of substitution, to Exchange
said Group Partnership Units on the books of the Group Partnerships for Common
Units on the books of the Issuer, with full power of substitution in the
premises.

 

IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this
Notice of Exchange to be executed and delivered by the undersigned or by its
duly authorized attorney.

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:Exhibit 10.9

 

Form of Confidentiality and Restrictive Covenant Agreement

 

This Confidentiality and Restrictive Covenant
Agreement, dated as of October 1, 2009 (the “Agreement”), is
entered into between KKR Holdings L.P., a Cayman limited partnership (“KKR Holdings”), and the
undersigned (the “Undersigned”).

 

WHEREAS,

 

1.              KKR Holdings is a party to that
certain Amended and Restated Purchase and Sale Agreement (the “Purchase and Sale Agreement”),
dated as of July 19, 2009, among KKR Private Equity Investors L.P., a
Guernsey limited partnership (“KPE”)
and certain others, pursuant to which all of the assets and liabilities of KPE,
including all of the limited partner interests in KKR PEI Investments L.P. held
by KPE, will be directly or indirectly contributed to KKR Management Holdings
L.P. and KKR Fund Holdings L.P. (together with KKR Management Holdings L.P.,
the “Group Partnerships”) in exchange
for Group Partnership Units (as defined in the Purchase and Sale Agreement)
representing partner interests in the Group Partnerships (the “Combination Transaction”);

 

2.              In connection with the Combination
Transaction, and as a condition precedent to the completion of the Combination
Transaction, the Undersigned and certain other persons employed by, or
otherwise associated or affiliated with, KKR will complete the Restructuring
Transactions (as defined in the Purchase and Sale Agreement and, together with
the Combination Transaction, the “Transaction”)
pursuant to which the Undersigned and such other persons will contribute their
Contributed Interests (as defined in the Purchase and Sale Agreement) to KKR
Holdings in exchange for one or more interests in, or securities of, KKR
Holdings (“Holdings Interests”)
and KKR Holdings will contribute such Contributed Interests to the Group
Partnerships in exchange for Group Partnership Units;

 

3.           Upon
completion of the Transaction, KKR Holdings will own 70% of the outstanding
Group Partnership Units, and holders of Holdings Interests, including the
Undersigned, will receive financial benefits from KKR’s business through their
participation in the value of equity in the Group Partnerships held by KKR
Holdings, special allocations of carried interest received by KKR,
distributions and payments received from KKR Holdings and certain other
financial arrangements;

 

4.              The Undersigned acknowledges and
agrees that (i) during the course of the Undersigned’s employment,
association or other similar affiliation with KKR, the Undersigned will receive
and have access to confidential information of KKR and the Portfolio Companies
(collectively, the “Related Entities”)
and have influence over and the opportunity to develop relationships with
Clients, Prospective Clients, Portfolio Companies and partners, members,
employees and associates of KKR; and (ii) such confidential information
and relationships are extremely valuable assets in which KKR has invested, and
will continue to invest, substantial time, effort and expense in developing and
protecting; and

 

5.           The
Undersigned acknowledges and agrees that (i) Holdings Interests and any
other consideration that the Undersigned will receive in connection with and as
a result of the Transaction will materially benefit the Undersigned; (ii) it
is essential to the success of the Transaction and to protect the business
interests and goodwill of KKR Holdings, including goodwill created or realized
in connection with the Transaction, that KKR be protected by the restrictive
covenants set forth herein; (iii) it is a condition precedent to the
Undersigned participating in the Transaction and receiving Holdings Interests
that the Undersigned agree to be bound by the restrictive covenants contained
herein; and (iv) KKR 

 

1

 

Holdings
would suffer significant and irreparable harm from a violation by the
Undersigned of the restrictive covenants set forth herein for a period of time
after the Transaction or after the termination of the Undersigned’s employment,
association or other similar affiliation with KKR.

 

NOW, THEREFORE, to
provide KKR Holdings with reasonable protection of its interests and goodwill
and in consideration for (i) the Holdings Interests and any other
consideration that the Undersigned will receive in connection with and as a
result of the Transaction; (ii) the material financial and other benefits
that the Undersigned will derive from such Holdings Interests; and (iii) other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Undersigned hereby agrees to the following restrictions:

 

1.                                Outside
Business Activities.

 

The
Undersigned acknowledges that, during the course of the Undersigned’s
employment, association or other similar affiliation with KKR, the Undersigned
will be subject to written policies of KKR included in its employee manual,
code of ethics and other documents relating to the Undersigned’s employment,
association or other similar affiliation with KKR (the “Written Policies”).
The Written Policies include restrictions that limit the ability of the Undersigned
to engage in outside business activities without the prior approval of KKR. If
the Undersigned has an employment contract with KKR, the Undersigned may be
subject to similar restrictions under that agreement. The Undersigned hereby
agrees that, during the Undersigned’s employment, association or other similar
affiliation with KKR, the Undersigned will comply with all such restrictions
that are from time to time in effect which are applicable to the Undersigned.

 

2.                                Confidentiality
Undertaking.

 

The
Undersigned acknowledges that, during the course of the Undersigned’s
employment, association or other similar affiliation with KKR, the Undersigned
will receive and have access to confidential information of the Related
Entities, including KKR Holdings. Recognizing that any disclosure of such
information could have serious consequences to one or more of the Related
Entities, the Undersigned hereby agrees to comply with the confidentiality
undertaking set forth in Schedule A hereto. Such restrictions are incorporated
by reference into, and form a material part of, this Agreement.

 

3.                                Non-Compete.

 

The
Undersigned hereby agrees that, during the Post-Termination Restricted Period,
the Undersigned will not set up, be employed by, hold an office in or provide consulting,
advisory or other similar services to or for the benefit of a Competing
Business where the activities or services of the Undersigned in relation to the
Competing Business are substantially the same as the activities that the
Undersigned engaged in, or the services that the Undersigned provided, in
connection with the Undersigned’s employment, association or other similar
affiliation with KKR.

 

For the purposes of this
Agreement, a “Competing
Business” means a business that competes (i) in a Covered
Country with any business conducted by KKR on the date on which the Undersigned’s employment,
association or other similar affiliation with KKR is terminated (the “Termination Date”)
and in which the Undersigned had material involvement during the 12 months
preceding the Termination Date or (ii) in any country with any business
that KKR was, on the Termination Date, formally considering conducting and
where the Undersigned had material involvement in the preparation, planning or
formal consideration of such business. A “Covered Country” means the United
States, United Kingdom, France, Hong Kong, China, Japan, Australia, India,
United Arab Emirates, Saudi Arabia or any
other country where KKR conducted business on the Termination Date.

 

2

 

Notwithstanding
the foregoing, nothing in this Agreement shall be deemed to prohibit the
Undersigned from (i) associating with any business whose activities
consist principally of making passive investments for the account and benefit
of the Undersigned and/or members of the Undersigned’s immediate family where
such business does not, within the knowledge of the Undersigned, compete with a
business of KKR for specific privately negotiated investment opportunities; (ii) associating
with any business that does not have a Competing Amount of Capital; (iii) making
and holding passive investments in publicly traded securities of a Competing
Business where such passive investment does not exceed 5% of the amount of such
securities that are outstanding at the time of investment; or (iv) making
and holding passive investments in limited partner or similar interests in any
investment fund or vehicle with respect to which the Undersigned does not
exercise control, discretion or influence over investment decisions. For the
purposes of this paragraph, a “Competing Amount of Capital” means (x) US$1
billion of capital that is invested or targeted for investment
substantially in private equity investments in Pan-North America,  Pan-Europe or the United States or as part of
a global private equity investment program or (y) US$500 million of
capital that is invested or targeted for investment substantially in other
types of investments, including private equity investments, that do not fall
within clause (x) above.

 

4.                                Non-Solicitation
of Clients and Prospective Clients; Non-Interference.

 

The
Undersigned hereby agrees that, during the Post-Termination Restricted Period,
the Undersigned will not (i) solicit, or assist any other person in
soliciting, the business of any Client or Prospective Client for, or on behalf
of, a Competing Business; (ii) provide, or assist any other person in
providing, for any Client or Prospective Client any services that are
substantially similar to those that KKR provided or proposed to be provided to
such Client or Prospective Client; or (iii) impede or otherwise interfere
with or damage, or attempt to impede or otherwise interfere with or damage, any
business relationship and/or agreement between KKR and any Client or
Prospective Client. As used in this Section 4, “solicit” means to
have any direct or indirect communication inviting, advising, encouraging or
requesting any person to take or refrain from taking any action with respect to
the giving by such person of business to a Competing Business, regardless of
who initiated such communication.

 

For
purposes of this Agreement, “Client” means any person (a) for whom KKR
provided services, including any investor in an investment fund or vehicle that
is managed, advised or sponsored by KKR (a “KKR Fund”), or that was a Portfolio
Company of a KKR Fund and (b) with whom the Undersigned or individuals
reporting to the Undersigned had material contact or dealings on behalf of KKR
during the 12 months prior to the Termination Date; and “Prospective Client”
means any person with whom (a) KKR has had material negotiations or
discussions concerning becoming a Client and (b) the Undersigned or
individuals reporting to the Undersigned had material contact or dealings on
behalf of KKR during the 12 months prior to the Termination Date.

 

5.                                Non-Solicitation
of Personnel.

 

The
Undersigned hereby agrees that, during the Post-Termination Restricted Period,
the Undersigned will not solicit, employ, engage or retain, or assist any other
person in soliciting, employing, engaging or retaining, any Key Person. As used
in this Section 5, “solicit” means to have any direct or indirect
communication inviting, advising, encouraging or requesting any Key Person to
terminate his or her employment, association or other affiliation with KKR or
Capstone or recommending or suggesting that a third party take any of the
foregoing actions, including by way of identifying such Key Person to the third
party, in each case regardless of who initiated such communication.

 

For
purposes of this Agreement, a “Key Person” means a person (a) with
whom the Undersigned had material contact or dealings during the course of the
Undersigned’s employment, association or other similar affiliation with KKR and
(b) who on the Termination Date was either (i) employed by KKR as an 

 

3

 

executive-level
employee or officer or otherwise associated or similarly affiliated with KKR in
any position, including as a member or partner, having functions and duties
substantially similar to those of an executive-level employee or officer; (ii) a
senior advisor to KKR; (iii) employed by Capstone as an executive-level
employee or officer or otherwise associated or similarly affiliated with
Capstone in any position, including as a member or partner, having functions
and duties substantially similar to those of an executive-level employee or
officer; or (iv) a person who provides services exclusively to KKR or its
Portfolio Companies and has functions and duties that are substantially similar
to those of a person listed in sub-clauses (i), (ii) or (iii) above.

 

6.                                Post-Termination
Restricted Period.

 

The
“Post-Termination
Restricted Period” for the Undersigned shall commence on the
Termination Date and shall expire upon the later of (i) the second  anniversary of the date of the Combination
Transaction and (ii) the eighteen month anniversary of the Termination Date.
Notwithstanding the foregoing, if the Undersigned’s employment,
association or other similar affiliation with KKR is terminated involuntarily
and without Cause, the Post-Termination Restricted Period will expire on the
later of (a) the first anniversary
of the date of the Combination Transaction and (b) the nine month anniversary of the Termination Date. To the extent that the Undersigned
continues to be employed by, or otherwise associated or similarly affiliated
with, KKR during any “garden leave” or “notice” period in which the Undersigned
is required to not perform any services for or enter the premises of KKR and to
otherwise comply with all terms and conditions imposed on the Undersigned
during such “garden leave” or “notice” period, the applicable Post-Termination
Restricted Period shall be reduced by the amount of any such “garden leave” or “notice”
period in which the Undersigned complies with such terms.

 

For the purposes of this Agreement, “Cause” means the occurrence or
existence of any of the following as determined fairly on an informed basis and
in good faith by the general partner of KKR Holdings: (i) any act of fraud,
misappropriation, dishonesty, embezzlement or similar conduct by the
Undersigned against KKR, a KKR Fund or a Portfolio Company, (ii) a Regulatory
Violation that has a material adverse effect on (x) the business of any KKR
entity or (y) the ability of the Undersigned to function as an employee,
associate or other similar affiliate of KKR, taking into account the services
required of the Undersigned and the nature of the business of KKR, or (iii) a
material breach by the Undersigned of a material provision of any Written
Policies of KKR or the deliberate failure by the Undersigned to perform the
Undersigned’s duties to KKR, provided in the case of this clause (iii) that the
Undersigned has been given written notice of such breach or failure within 15
days of KKR becoming aware of such breach or failure and the Undersigned has
failed to cure such breach or failure within (A) 15 days of receiving notice
thereof or (B) such longer period of time, not to exceed 30 days, as may be
reasonably necessary to cure such breach or failure provided that the
Undersigned is then working diligently to cure such breach or failure.

 

A “Regulatory Violation”
means (A) a conviction of the Undersigned based on a trial or by an
accepted plea of guilt or nolo contendere
of any felony or misdemeanor crime involving moral turpitude, false statements,
misleading omissions, forgery, wrongful taking, embezzlement, extortion or
bribery, (B) a final determination by any court of competent jurisdiction
or governmental regulatory body (or an admission by the Undersigned in any
settlement agreement) that the Undersigned has violated any U.S. federal or
state or comparable non-U.S. securities laws, rules or regulations or (c) a
final determination by self-regulatory organization having authority with
respect to U.S. federal or state or comparable non-U.S. securities laws, rules or
regulations (or an admission by the Undersigned in any settlement agreement)
that the Undersigned has violated the written rules of such
self-regulatory organization that are applicable to any KKR entity.

 

4

 

7.                                Definitions.

 

For
the purposes of this Agreement, “KKR” shall be deemed to consist of KKR
Holdings, the Group Partnerships, the direct and indirect parents of the Group
Partnerships (the “Parents”),
any direct or indirect subsidiaries of the Parents or the Group Partnerships,
the general partner or similar controlling entities of KKR Funds and any other
entity through which any of the foregoing directly or indirectly conduct its
business, but shall exclude Portfolio Companies. A “Portfolio Company”
means any company over which a KKR Fund exercises a significant degree of
control as an investor; and “Capstone”  means Capstone Consulting L.L.C., Capstone
Europe Limited, KKR Capstone Asia Limited and any entity formed for a similar
purpose, the direct and indirect parents and subsidiaries of the foregoing, and
any other entity through which any of the foregoing directly or indirectly conduct
its business.

 

8.                                Representations;
Warranties; Other Agreements.

 

The
Undersigned acknowledges and agrees that the Undersigned will derive material
financial and other benefits from the Undersigned’s employment, association or
other similar affiliation with KKR and that the restrictions contained herein
are reasonable in all circumstances and necessary to protect the legitimate
business interests of KKR Holdings to have and enjoy the full benefit of its
business interests and goodwill, including goodwill created or realized in
connection with the Transaction. The Undersigned further agrees and
acknowledges that such restrictions will not unnecessarily or unreasonably
restrict or otherwise limit the professional opportunities of the Undersigned
should his or her employment, association or other similar affiliation with KKR
terminate, that the Undersigned is fully aware of the Undersigned’s obligations
under this Agreement and that the livelihood of the Undersigned is not impaired
by the Undersigned’s entry into the covenants contained herein. KKR Holdings
shall have the right, exercisable in its sole discretion, to directly or
indirectly make a payment to the Undersigned or grant other consideration if,
and to the extent, necessary to enforce the restrictions contained herein in
accordance with any applicable law.

 

9.                                Certain
Relationships.

 

The
Undersigned acknowledges and agrees that the Undersigned’s compliance with this
Agreement is a material part of the Undersigned’s arrangements with KKR
Holdings and KKR. Notwithstanding anything to the contrary herein, this
Agreement does not constitute an employment agreement between the Undersigned
and KKR Holdings or any other KKR entity and shall not interfere with or
otherwise affect any rights any such person may have to terminate the
Undersigned’s employment, association or other similar affiliation at any time
upon such notice as may be required by law or the terms of any agreement or
arrangement with the Undersigned.

 

10.                         Injunctive
Relief.

 

The
Undersigned acknowledges and agrees that the remedies of KKR Holdings at law
for any breach of this Agreement would be inadequate and that for any breach of
this Agreement, KKR Holdings shall, in addition to any other remedies that may
be available to it at law or in equity, or as provided for in this Agreement,
be entitled to an injunction, restraining order or other equitable relief,
without the necessity of posting a bond, restraining the Undersigned from
committing or continuing to commit any violation of this Agreement. The
Undersigned further acknowledges and agrees that KKR Holdings shall not be
required to prove, or offer proof, that monetary damages for a breach of this
Agreement would be difficult to calculate and that any remedies at law would be
inadequate for any breach of this Agreement.

 

5

 

11.                         Amendment;
Waiver.

 

This
Agreement may not be amended, restated, supplemented or otherwise modified
other than by an agreement in writing signed by the parties hereto. No failure
to exercise and no delay in exercising, on the part of any party, of any right,
remedy, power or privilege hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any
other right, remedy, power or privilege. The waiver of any particular right,
remedy, power or privilege shall not affect or impair the rights, remedies,
powers or privileges of any person with respect to any subsequent default of
the same or of a different kind by any party hereunder. The rights, remedies,
powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law. No waiver of any
provision hereto shall be effective unless it is in writing and signed by the
person asserted to have granted such waiver.

 

12.                         Assignment.

 

This
Agreement may not be assigned by any party hereto without the prior written
consent of the other party hereto, except that the consent of the Undersigned
shall be deemed to have been given to KKR Holdings (and the Undersigned
acknowledges that KKR Holdings shall therefore have the right without further
consent) to assign its rights hereunder, in whole or in part, to (i) a KKR
entity or (ii) any person who is a successor of KKR Holdings or a KKR
entity by merger, consolidation or purchase of all or substantially all of its
assets, in which case such assignee shall be substituted for KKR Holdings hereunder
with respect to the provisions so assigned and be bound under this Agreement
and by the terms of the assignment in the same manner as KKR Holdings was bound
hereunder. Any purported assignment of this Agreement in violation of this
section shall be null and void.

 

13.                         Governing
Law.

 

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

 

14.                         Resolution
of Disputes; Submission to Jurisdiction.

 

(a)                                     Subject to paragraphs (b) and (c) below,
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 the validity, scope and enforceability of this
arbitration provision) (each a “Dispute”) shall be finally settled by
arbitration conducted by a single arbitrator in New York in accordance with the
then existing Rules of Arbitration of the International Chamber of
Commerce (the “ICC”).  If the parties to the Dispute fail to agree
on the selection of an arbitrator within 30 days of the receipt of the request
for arbitration, the ICC 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.

 

(b)                                     Prior to filing a Request for Arbitration or
an Answer under the Rules of Arbitration of the ICC, as the case may be,
KKR Holdings may, in its sole discretion, require all Disputes or any specific
Dispute to be heard by a court of law in accordance with paragraph (e) below
and, for the purposes of this paragraph (b), each party expressly consents to
the application of paragraphs (e) and (f) below to any such suit,
action or proceeding. If an arbitration proceeding has already been commenced
in connection with 

 

6

 

a Dispute at the time that KKR Holdings commences
such proceedings in accordance with this paragraph (b), such Dispute shall be
withdrawn from arbitration.

 

(c)                                      Subject to paragraph (b) above, either
party may bring 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 and/or
enforcing an arbitration award and, for the purposes of this paragraph (c),
each party expressly consents to the application of paragraphs (e) and (f) below
to any such suit, action or proceeding.

 

(d)                                     Except as required by law or as may be
reasonably required in connection with 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. Judgment on any award rendered
by an arbitration tribunal may be entered in any court having jurisdiction
thereover.

 

(e)                                      EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE 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 PARAGRAPHS (B) OR (C) ABOVE. The parties
acknowledge that the forum designated by this paragraph (e) has a
reasonable relation to this Agreement, and to the parties’ relationship with
one another. The parties 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 suit, action or proceeding
brought in any court referred to in the preceding sentence or pursuant to
paragraphs (b) or (c) above and such parties agree not to plead or
claim the same.

 

(f)                                       The parties agree that if a suit, action or
proceeding is brought under paragraphs (b) or (c) 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 they irrevocably appoint the Secretary or General Counsel of KKR Holdings
or an officer of KKR Holdings (at the then-current principal business address
of KKR Holdings) as such party’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 party of any such service of process,
shall be deemed in every respect effective service of process upon the party in
any such action or proceeding.

 

15.                         Counterparts.

 

This
Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original as against any party whose signature appears thereon
and all of which shall together constitute one and the same instrument. This
Agreement shall become binding when one or more counterparts of this Agreement,
individually or taken together, shall bear the signatures of all of the parties
reflected hereon as the signatories.

 

7

 

16.                         Entire
Agreement.

 

This
Agreement contains the entire agreement and understanding among the parties
hereto with respect to the subject matter of this Agreement and supersedes all
prior and contemporaneous agreements, understandings, inducements and
conditions, express or implied, oral or written, of any nature whatsoever with
respect to the subject matter of this Agreement, other than any agreements and
arrangements (i) set forth in the instruments governing any equity
incentive plans or grants, phantom stock plans or grants, deferred compensation
arrangements, allocations of carried interest or similar arrangements involving
KKR Holdings or a member of KKR to which the Undersigned is a party or
beneficiary; or (ii) that specifically reference this Agreement. The
express terms of this Agreement control and supersede any course of performance
and any usage of the trade inconsistent with any of the terms of this
Agreement.

 

17.                         Severability.

 

Any provision of this
Agreement that is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction. In such
event, the invalid provision shall be substituted with a valid provision which
most closely approximates the intent and the economic effect of the invalid
provision and which would be enforceable to the maximum extent permitted in
such jurisdiction or in such case.

 

8

 

	
   

  	
  KKR Holdings L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  KKR Holdings GP
  Limited,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  William J. Janetschek

  
	
   

  	
   

  	
  Director

  
	
   

  	
   

  	
   

  
	
  Agreed and accepted as
  of the date

  	
   

  	
   

  
	
  first written above:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  (Please Sign Above)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  (Please Print)

  	
   

  	
   

  

 

S-1

 

Schedule A

 

Confidentiality Undertaking

 

The
Undersigned hereby agrees that, except as provided herein, the Undersigned will
not under any circumstances (either while employed, associated or otherwise
affiliated with KKR or at any time after the Termination Date) for any purpose
other than in the ordinary course of the performance of the Undersigned’s
duties as an employee, associate or other affiliated person of KKR, use or
divulge, communicate, publish, make available, or otherwise disclose any
Confidential Information to any person or entity, including but not limited to
any business, firm, governmental body, partnership, corporation, press service
or otherwise, other than to (i) any executive or employee of KKR or KKR
Holdings in the ordinary course of the performance of Undersigned’s duties as
an employee, associate or other affiliated person of KKR; (ii) any person
or entity to the extent explicitly authorized by an executive of KKR or KKR
Holdings in the ordinary course of the performance of Undersigned’s duties as
an employee, associate or other affiliated person of KKR; (iii) any
attorney, accountant, consultant or similar service provider retained by KKR or
KKR Holdings who is required to know such information and is obligated to keep
such information confidential; or (iv) any person or entity to the extent
the law or legal process requires disclosure by the Undersigned, provided that,
in the case of clause (iv), the Undersigned must first give KKR or KKR Holdings
prompt written notice of any such requirement, disclose no more information
than is so required in the opinion of competent legal counsel, and cooperate
fully with all efforts by KKR or KKR Holdings to obtain a protective order or
similar confidentiality treatment for such information.

 

As
used in this Schedule A, an “executive” of KKR or KKR Holdings means an officer,
member, managing director, director, principal or employee of KKR or KKR
Holdings acting in a supervisory capacity. “Confidential Information” means (a) all
confidential, proprietary or non-public information of, or concerning the business,
operations, activities, personnel, finances, plans, personal lives, habits,
history, clients, investors, or otherwise of, the  Related Entities or KKR Holdings, or any
person who at any time is or was a member, partner, officer, director, other
executive, employee or stockholder of any of the foregoing, (b) all
confidential, proprietary or non-public information of or concerning any member
of a family of any of the individuals referred to in clause (a), whether by
birth, adoption or marriage (including but not limited to any of their current
or former spouses or any living or deceased relatives), and (c) all
confidential, proprietary or non-public information of or concerning any of the
clients or investors of a Related Entity or KKR Holdings or any other person or
entity with which or whom any Related Entity, KKR Holdings or its respective
clients or investors does business or has a relationship. Confidential
Information includes information about the Related Entities or KKR Holdings
relating to or concerning any of their (i) finances, investments, profits,
pricing, costs, and accounting, (ii) intellectual property (including but
not limited to patents, inventions, discoveries, plans, research and
development, processes, formulae, reports, protocols, computer software,
databases, documentation, trade secrets, know-how and business methods), (iii) personnel,
compensation, recruiting and training, and (iv) any pending or completed
settlements, arbitrations, litigation, governmental investigations and similar
proceedings. Notwithstanding the foregoing, Confidential Information does not
include any portions of the foregoing that the Undersigned can demonstrate by
sufficient evidence satisfactory to KKR Holdings or KKR that has been (i) lawfully
published in a form generally available to the public prior to any disclosure
by the Undersigned in breach of this Agreement or (ii) made legitimately
available to the Undersigned by a third party without breach of any obligation
of confidence owed to any Related Entity or KKR Holdings.

 

A-1

 

Without
limiting the generality of the foregoing, the Undersigned agrees that it will
be a breach of this Agreement to write about, provide, disclose or use in any
fashion at any time any Confidential Information that is or becomes part of the
basis for, or is used in any way in connection with any part of any book,
magazine or newspaper article, any interview or is otherwise published in any
media of any kind utilizing any technology now known or created in the future.

 

Upon
termination of the Undersigned’s employment, association or other similar
affiliation with KKR for any reason, the Undersigned hereby agrees to (i) cease
and not thereafter commence any and all use of any Confidential Information; (ii) upon
the request of KKR or KKR Holdings, promptly deliver to KKR or KKR Holdings or,
at the option of KKR or KKR Holdings, destroy, delete or expunge all originals
and copies of any Confidential Information in any form or medium in the
Undersigned’s possession or control (including any of the foregoing stored or
located in the Undersigned’s home, laptop or other computer that is not the
property of KKR or KKR Holdings); (iii) notify and fully cooperate with
KKR and KKR Holdings regarding the delivery or destruction of any other
Confidential Information of which the Undersigned is aware; and (iv) upon
the request of KKR or KKR Holdings, sign and deliver a statement that the
foregoing has been accomplished.

 

The
Undersigned acknowledges that he or she is aware that applicable securities
laws place certain restrictions on any person who has received from an issuer
material, non-public information concerning the issuer with respect to
purchasing or selling securities of such issuer or from communicating such
information to any other person and further agrees to comply with such
securities laws.  Without limiting
anything in this Agreement, the Undersigned hereby expressly confirms his or
her explicit understanding that the Undersigned’s obligations hereunder are in
addition to, and in no way limit, the Undersigned’s obligations under
compliance procedures of KKR and KKR Holdings, including those contained in the
Written Policies.

 

Notwithstanding
anything in this Agreement to the contrary, the Undersigned may disclose to any
and all persons, without limitation of any kind, the tax treatment and tax
structure of any member of KKR in which the Undersigned holds an interest and
all materials of any kind (including opinions or other tax analyses) that are
provided to the Undersigned relating to such tax treatment and tax structure.

 

A-2

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