Document:

Exhibit

Exhibit 10.17

FORM OF INDEMNIFICATION AGREEMENT 
This INDEMNIFICATION AGREEMENT (this “Agreement”) is dated as of _________ among Ares Management Corporation, a Delaware corporation (the “Company”), Ares Management GP LLC, a Delaware limited liability company (“Ares GP”), Ares Holdings L.P., a Delaware limited partnership (“Ares Holdings”), Ares Investments L.P., a Delaware limited partnership (“Ares Investments”), and Ares Offshore Holdings L.P., a Cayman Islands exempted limited partnership (“Ares Offshore” and, together with the Company, Ares GP, Ares Holdings and Ares Investments, the “Indemnitors”), and the indemnitee named on the signature pages hereto (“Indemnitee”).
WHEREAS, at the request of the Company, Indemnitee has been asked to serve as a director or an officer of the Company or in another capacity with the Company, any of the other Indemnitors or any of their respective affiliates, including as a director, officer, employee or agent, and may, therefore, be subjected to claims, suits or proceedings arising as a result of his or her services to and activities on behalf of the Indemnitors and their subsidiaries and affiliates;
WHEREAS, as an inducement to Indemnitee to serve in such capacity(ies), the Indemnitors have agreed to indemnify and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings, to the maximum extent permitted by law; and
WHEREAS, the parties by this Agreement desire to set forth their agreement regarding indemnification and the advancement of expenses.
NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the parties do hereby covenant and agree as follows:
Section 1.Indemnification. 
To the fullest extent (whether partial or complete) permitted by applicable law, including Section 145 of the Delaware General Corporation Law (as it may be amended, the “DGCL”), Section 18-108 of the Delaware Limited Liability Company Act (as it may be amended, the “DLLCA”), Section 17-108 of the Delaware Revised Uniform Limited Partnership Act (as it may be amended, the “DRULPA”) and the Exempted Limited Partnership Law (2013 Revision) of the Cayman Islands: 
(a)    The Indemnitors shall, jointly and severally, indemnify, defend, protect and hold harmless Indemnitee if Indemnitee was or is made or is threatened to be made a party to, or is otherwise involved in, as a witness or otherwise, any threatened, pending or completed action, suit or proceeding (brought by or in the right of any of the Indemnitors or otherwise), including any appeal therefrom, (i) by reason of the fact that Indemnitee is or was or has agreed to serve as, or has been appointed as, a director, officer, employee or agent (which, for purposes of this Agreement, shall include a trustee, fiduciary, attorney, advisor, consultant, member, shareholder, representative, partner or manager or similar capacity) of any of the Indemnitors or their affiliates, in each case whether prior to, on or subsequent to the date of this Agreement, or by reason of any action alleged to have been taken or omitted to be taken by Indemnitee in such capacity, whether prior to, on or subsequent to the date of this Agreement, or (ii) by reason of the fact that Indemnitee is or was serving or has agreed to serve at the request of, or is or was or has been appointed by, any Indemnitor or any of their affiliates as a director, officer, employee or agent of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan, or other enterprise or entity (each such entity, a “Primary Obligor”), in each case whether prior to, on or subsequent to the date of this Agreement, or by reason of any action alleged to have been taken or omitted to be taken by Indemnitee in such capacity. The indemnification of an Indemnitee of the type identified in clause (i) of this Section 1(a) shall, to the extent not in conflict with such policy, be secondary to any and all payment to which such person is entitled from any relevant insurance policy issued to or for the benefit of any Indemnitor or Indemnitee. The indemnification of an Indemnitee of the type identified in clause (ii) of this Section 1(a) shall be secondary to any and all indemnification to which such person is entitled from (x) the relevant Primary Obligor (including any payment made to such person under any insurance policy issued to or for the benefit of such Primary Obligor or the Indemnitee), and (y) the relevant Fund (if applicable) (including any payment made to such person under any insurance policy issued to or for the benefit of such Fund or the Indemnitee) (clauses (x) and (y) together, the “Primary Indemnification”), and will only be paid to the extent the Primary Indemnification is not paid or does not provide coverage (e.g., a self-insured retention amount under an insurance policy). No such Primary Obligor or Fund shall be entitled to contribution or indemnification from or subrogation against the Indemnitors. If, notwithstanding the foregoing, the Indemnitors make an indemnification payment or advance expenses to such an Indemnitee, the Indemnitors shall be subrogated to the rights of such Indemnitee against the relevant Primary Obligor or Fund (if applicable) or under any insurance policy issued to or for the benefit of such Indemnitor, Primary Obligor, Fund or the Indemnitee; provided that the foregoing shall not in and of itself extinguish any unpaid or unsatisfied rights Indemnitee has against any third party or any Indemnitor. 
(b)    The indemnification provided by this Section 1 shall, to the fullest extent permitted by applicable law, be from and against any and all losses, claims, damages, demands, deficiencies, liabilities, costs and expenses (including attorneys’ fees), judgments, fines, penalties, interest and amounts paid in settlement or otherwise, including associated tax liabilities in respect of any of the foregoing (collectively “Losses”), in connection with, arising out of or related to any such action, suit or proceeding, including any appeals. 
Section 2.Advance Payment of Expenses. To the fullest extent (whether partial or complete) permitted by applicable law, including Section 145 of the DGCL, Section 18-108 of the DLLCA, Section 17-108 of the DRULPA and Cayman Islands law, expenses (including attorneys’ fees) incurred by Indemnitee in appearing at, participating in or defending any action, suit or proceeding or in connection with an enforcement action as contemplated by Section 3(e), shall be paid by the Indemnitors in advance of the final disposition of such action, suit or proceeding within 60 days after receipt by the Indemnitors of a statement or statements from Indemnitee requesting such advance or advances from time to time (which shall include invoices received by the Indemnitee in connection with such expenses, but in the case of invoices for legal services, any references to legal work performed or to expenditures made that would cause Indemnitee to waive any privilege accorded by applicable law or court rules may be omitted), whether prior to or after final disposition of any action, suit or proceeding. The Indemnitee hereby undertakes to repay any amounts advanced (without interest) to the extent that it is ultimately determined that Indemnitee is not entitled under this Agreement to be indemnified by the Indemnitors in respect thereof, it being understood that Indemnitee may make any such payment in cash, through the delivery of equity interests in any of the Indemnitors or their affiliates (valued at fair value at the time of such delivery), or any combination thereof. Such undertaking shall be unsecured and accepted without reference to the financial ability of the Indemnitee to make repayment and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement. No other form of undertaking shall be required of Indemnitee other than the execution of this Agreement. This Section 2 shall be subject to Section 3(b) and shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 6(a). 
Section 3.Procedure for Indemnification; Notification and Defense of Claim. 
(a)    
(i)    Indemnitee shall notify the Indemnitors in writing of any matter with respect to which Indemnitee intends to seek indemnification or advancement hereunder as soon as reasonably practicable following receipt by Indemnitee of written notice thereof or Indemnitee’s otherwise becoming aware thereof. The written notification to Indemnitors shall include a description of the nature of the action, suit or proceeding and the facts underlying such action, suit or proceeding, in each case to the extent known by Indemnitee. The failure to promptly notify the Indemnitors of the commencement of the action, suit or proceeding, or of Indemnitee’s request for indemnification, will not relieve the Indemnitors from any liability that they may have to Indemnitee hereunder, except to the extent the Indemnitors are actually and materially prejudiced in their defense of such action, suit or proceeding as a result of such failure. 
(ii)    To obtain indemnification under this Agreement, Indemnitee shall submit to the Indemnitors a written request therefor including such documentation and information as is reasonably available to or known by Indemnitee and is reasonably necessary to enable the Indemnitors to determine whether and to what extent Indemnitee is entitled to indemnification hereunder. 
(b)    With respect to any action, suit or proceeding of which the Indemnitors are so notified as provided in this Agreement, the Indemnitors shall, subject to the last two sentences of this paragraph, be entitled to assume the defense of such action, suit or proceeding, with counsel reasonably acceptable to Indemnitee, upon the delivery to Indemnitee of written notice of their election to do so. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Indemnitors, the Indemnitors will not be liable to Indemnitee under this Agreement for any subsequently-incurred fees of separate counsel engaged by Indemnitee with respect to the same action, suit or proceeding unless the employment of separate counsel by Indemnitee has been previously authorized in writing by the Indemnitors. Notwithstanding the foregoing, if Indemnitee, based on the advice of his or her counsel, shall have reasonably concluded (with written notice being given to the Indemnitors setting forth the basis for such conclusion) that, in the conduct of any such defense, there is or is reasonably likely to be a conflict of interest or position between the Indemnitors and Indemnitee with respect to a significant issue, then the Indemnitors will not be entitled, without the written consent of Indemnitee, to assume such defense. In addition, the Indemnitors will not be entitled, without the written consent of Indemnitee, to assume the defense of any claim brought by or in the right of any of the Indemnitors. 
(c)    To the fullest extent permitted by applicable law, including Section 145 of the DGCL, Section 18-108 of the DLLCA, Section 17-108 of the DRULPA and Cayman Islands law, the Indemnitors’ assumption of the defense of an action, suit or proceeding in accordance with paragraph 3(b) will constitute an irrevocable acknowledgement by the Indemnitors that any and all Losses in respect of any of the foregoing, including any appeals therefrom, are indemnifiable by the Indemnitors under Section 1 of this Agreement (including, to the fullest extent permitted by law, that the Indemnitee has met all applicable standards of conduct). 
(d)    The determination whether to grant Indemnitee’s indemnification request shall be made in accordance with applicable law and shall be made promptly and in any event within 60 days following the Indemnitors’ receipt of a request for indemnification in accordance with Section 3(a)(ii). If the Indemnitors determine that Indemnitee is entitled to such indemnification or, as contemplated by paragraph 3(c) the Indemnitors have acknowledged such entitlement, the Indemnitors will make payment to Indemnitee of the indemnifiable amount within 10 days after making such determination. If the Indemnitors are not deemed to have so acknowledged such entitlement or the Indemnitors’ determination of whether to grant Indemnitee’s indemnification request shall not have been made within such 60 day period, the requisite determination of entitlement to indemnification shall, subject to Section 6, nonetheless be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law. 
(e)    
(i)    In the event that (1) the Indemnitors determine in accordance with this Section 3 that Indemnitee is not entitled to indemnification under this Agreement, (2) the Indemnitors deny a request for indemnification, in whole or in part, or fail to respond or make a determination of entitlement to indemnification within 60 days following receipt of a request for indemnification as described above, (3) payment of indemnification is not made within 10 days after a determination has been made that Indemnitee is entitled to indemnification, (4) advancement of expenses is not timely made in accordance with Section 2, or (5) the Indemnitors or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication in any court of competent jurisdiction of his or her entitlement to such indemnification or advancement of expenses.  
(ii)    Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration in Los Angeles, California, before one arbitrator, conducted by the Judicial Arbitration and Mediation Services/Endispute, Inc. (“JAMS”), or its successor.  Disputes shall be resolved in accordance with the Federal Arbitration Act, 9 U.S.C. §§1–16, and JAMS’ Comprehensive Arbitration Rules and Procedures then in effect.  The arbitrator will have the same, but no greater, remedial authority than would a court of law and shall issue a written decision including the arbitrator’s essential findings and conclusions and a statement of the award.  Judgment upon the award rendered by the arbitrator may be entered by any court having jurisdiction thereof.  Indemnitee shall commence a proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 3(e); provided, however, that the foregoing clause shall not apply to a proceeding brought by Indemnitee to enforce his or her rights under Section 3(g).
(iii)    Indemnitee’s expenses (including attorneys’ fees) incurred in connection with determining Indemnitee’s right to indemnification or advancement of expenses, in whole or in part, in any such proceeding or arbitration or otherwise shall also be indemnified by the Indemnitors to the fullest extent permitted by applicable law (whether such efforts are successful or unsuccessful). 
(f)    Indemnitee shall be presumed to be entitled to indemnification and advancement of expenses under this Agreement upon submission of a request therefor in accordance with Section 2 or Section 3 of this Agreement, as the case may be. The Indemnitors shall have the burden of proof in overcoming such presumption, and such presumption shall be used as a basis for a determination of entitlement to indemnification and advancement of expenses unless the Indemnitors overcome such presumption by clear and convincing evidence. No determination by the Indemnitors (including by directors or any independent counsel) that the Indemnitee has not satisfied any applicable standard of conduct shall be a defense to any claim by the Indemnitee for indemnification or reimbursement or advance payment of expenses by the Indemnitors hereunder or create a presumption that the Indemnitee has not met any applicable standard of conduct. The termination of any proceeding by judgment, order, settlement, conviction or upon a plea of nolo contendere or its equivalent shall not, of itself, create a presumption that the Indemnitee acted in bad faith or with criminal intent.
(g)    If Indemnitee is entitled under any provision of this Agreement to indemnification by the Indemnitors for some portion of his or her Losses but not the total amount thereof, the Indemnitors shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled. 
Section 4.Insurance and Subrogation. 
(a)    The Indemnitors may purchase or otherwise obtain coverage under a policy or policies of insurance, providing Indemnitee with coverage, subject to the terms and conditions of such policy or policies, for any liability asserted against, and incurred by, Indemnitee or on Indemnitee’s behalf by reason of the fact that Indemnitee is or was or has agreed to serve as, or is or was or has been appointed as, a director, officer, employee or agent of any of the Indemnitors or their affiliates, or is or was serving or has agreed to serve at the request of an Indemnitor or its affiliates as a director, officer, employee or agent of, or is or was or has agreed to otherwise be associated with, any Primary Obligor or arising out of Indemnitee’s status as such, whether or not the Indemnitors would have the power to indemnify Indemnitee against such liability under the provisions of this Agreement. If the Indemnitors have such insurance in effect at the time the Indemnitors receive from Indemnitee any notice of any matter with respect to which Indemnitee intends to seek indemnification or advancement hereunder, the Indemnitors shall give prompt notice thereof to the insurers in accordance with the procedures set forth in the policy or policies. The Indemnitors shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policy or policies. 
(b)    In the event of any payment by the Indemnitors under this Agreement the Indemnitors shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee with respect to any insurance policy; provided that the foregoing shall not in and of itself extinguish any unpaid or unsatisfied rights Indemnitee has against any third party or any Indemnitor. Indemnitee shall execute all papers required and take all action necessary to secure such rights, in each case reasonably requested by the Indemnitors, including execution of such documents as are necessary to enable the Indemnitors to bring suit to enforce such rights in accordance with the terms of such insurance policy. The Indemnitors shall, jointly and severally, pay or reimburse all expenses actually and reasonably incurred by Indemnitee in connection with such subrogation. 
(c)    The Indemnitors shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (including, but not limited to, judgments, fines and amounts paid in settlement, and excise taxes with respect to an employee benefit plan or penalties) if and to the extent that Indemnitee has otherwise actually received such payment under this Agreement or any insurance policy, contract, agreement or otherwise. 
Section 5.Certain Definitions. For purposes of this Agreement, the following definitions shall apply: 
(a)    The term “action, suit or proceeding” shall be broadly construed and shall include the investigation (formal or informal), preparation, prosecution, defense, settlement, arbitration, mediation and appeal of, and the giving of testimony in, any threatened, pending or completed investigation, inquiry, audit, claim, action, suit, arbitration, alternative dispute resolution mechanism, hearing or other proceeding or claim of any kind, whether civil, criminal, administrative, regulatory, legislative, investigative or otherwise, and whether or not formal or informal.
(b)    The term “by reason of the fact that Indemnitee is or was or has agreed to serve as a director, officer, employee or agent of an Indemnitor, or while serving as a director or officer of Indemnitor, is or was serving or has agreed to serve at the request of an Indemnitor as a director, officer, employee or agent of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise or entity” (or any words of similar effect) shall be broadly construed and shall include any actual or alleged act or omission to act. The Indemnitors hereby agree that any service, act or omission by Indemnitee respecting the investing activities of one or more Indemnitors or one or more Funds or their respective affiliates is at the request and direction of and on behalf of one or more of the Indemnitors or one or more of the Funds or their respective affiliates.
(c)    The term “expenses” shall be broadly construed and shall include all direct and indirect costs of any type or nature whatsoever (including all attorneys’ fees, retainers, court costs, fees of experts and other professionals, witness fees, travel expenses, duplicating, printing and binding costs, telephone charges, postage, delivery service fees, facsimile transmission charges, secretarial services, any federal, state, local or foreign taxes imposed on Indemnitee as a result of actual or deemed receipt of any payments under this Agreement, appeal bonds, all other disbursements and other out-of-pocket costs of the types customarily incurred in connection with, or as a result of, prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a deponent or a witness, or otherwise participating in any action, suit or proceeding and reasonable compensation for time spent by Indemnitee for which Indemnitee is not otherwise compensated by the Indemnitors or any third party), actually and reasonably incurred by Indemnitee in connection with either the investigation, defense or appeal of an action, suit or proceeding or establishing or enforcing a right to indemnification under this Agreement or otherwise incurred in connection with a claim that is indemnifiable hereunder. 
(d)    “Fund” shall mean any fund, investment vehicle or account whose investments are managed or advised by an Indemnitor or any of its affiliates.
(e)    The term “judgments, fines and amounts paid in settlement” shall be broadly construed and shall include all direct and indirect payments of any type or nature whatsoever (including all penalties and amounts required to be forfeited or reimbursed to the Indemnitors), as well as any penalties or excise taxes assessed on a person with respect to an employee benefit plan. 
Section 6.Limitation on Indemnification. Notwithstanding any other provision herein to the contrary, the Indemnitors shall not be obligated pursuant to this Agreement: 
(a)    Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee with respect to any action, suit or proceeding (or part thereof) initiated by Indemnitee, except with respect to any compulsory counterclaim brought by Indemnitee or an action, suit or proceeding brought to establish or enforce a right to indemnification, advancement of expenses or contribution under this Agreement (which shall be governed by the provisions of Section 12 of this Agreement), unless such action, suit or proceeding (or part thereof) was authorized or consented to by the member, or board of directors, of the Company. 
(b)    Section 16(b) Matters. To indemnify Indemnitee on account of any action, suit or proceeding in which Indemnitee agrees to or is liable for disgorgement of profits made from the purchase or sale by Indemnitee of securities pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended.
(c)    Bad Faith or Criminal Intent. To indemnify Indemnitee on account of conduct by Indemnitee where such conduct has been determined by a final (not interlocutory) judgment or other adjudication of a court or arbitrator or administrative body of competent jurisdiction as to which there is no further right or option of appeal or the time within which an appeal must be filed has expired without such filing to have been in bad faith or with criminal intent. 
Section 7.Certain Settlement Provisions. The Indemnitors shall have no obligation to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any action, suit or proceeding without the Indemnitors’ prior written consent.  The Indemnitors shall not settle any action, suit or proceeding in any manner that would impose any fine or other obligation on Indemnitee without Indemnitee’s prior written consent. Neither the Indemnitors nor Indemnitee will unreasonably withhold his, her, its or their consent to any proposed settlement. 
Section 8.Savings Clause. If any provision or provisions (or portion thereof) of this Agreement shall be invalidated on any ground by any court of competent jurisdiction, then the Indemnitors shall nevertheless indemnify, defend, protect and hold harmless Indemnitee if Indemnitee was or is made or is threatened to be made a party or is otherwise involved in any threatened, pending or completed action, suit or proceeding (brought by or in the right of any of the Indemnitors or otherwise), including appeals therefrom, (i) by reason of the fact that Indemnitee is or was or has agreed to serve as, or has been appointed as, a director, officer, employee or agent of any of the Indemnitors or their affiliates, in each case whether prior to, on or subsequent to the date of this Agreement, or by reason of any action alleged to have been taken or omitted to be taken by Indemnitee in such capacity, whether prior to, on or subsequent to the date of this Agreement, or (ii) by reason of the fact that Indemnitee is or was serving or has agreed to serve at the request of, or is or was or has been appointed by, any Indemnitor or any of their affiliates as a director, officer, employee or agent of a Primary Obligor, in each case whether prior to, on or subsequent to the date of this Agreement, or by reason of any action alleged to have been taken or omitted to be taken by Indemnitee in such capacity from and against any and all Losses in connection with, arising out of or related to such action, suit or proceeding, including any appeals, to the fullest extent (whether partial or complete) permitted by applicable law.
Section 9.Contribution.  In order to provide for just and equitable contribution in circumstances in which the indemnification provided for herein is held by a court of competent jurisdiction to be unavailable to Indemnitee in whole or in part, it is agreed that, in such event, the Indemnitors shall, to the fullest extent (whether partial or complete) permitted by applicable law, contribute to the payment of all of Indemnitee’s Losses in connection with, arising out of or related to any action, suit or proceeding, including any appeals, in an amount that is just and equitable in the circumstances; provided, that, without limiting the generality of the foregoing, such contribution shall not be required where such holding by the court is due to any limitation on indemnification set forth in Section 6 or 7 hereof.
Section 10.Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (a) delivered by hand or overnight courier service and receipted for by the party to whom said notice, request, demand or other communication shall have been directed, on the day of such delivery, or (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:
(i)    If to Indemnitee, to the address set forth on the signature page hereto.
(ii)    If to any Indemnitor, to:
c/o Ares Management Corporation
2000 Avenue of the Stars, 12th Floor
Los Angeles, CA 90067
Attn:  General Counsel

or to such other address as may have been furnished in writing to Indemnitee by the Company or to the Company by Indemnitee, as the case may be. 
Section 11.Nonexclusivity. The provisions for indemnification, advancement of expenses and contribution set forth in this Agreement shall not be deemed exclusive of, a substitute for or in abrogation of any other rights which Indemnitee may have under any provision of law, in any court in which a proceeding is brought, the certificate of incorporation, bylaws, certificate of limited partnership, partnership agreement, certificate of formation, limited liability company agreement, or comparable organizational documents of the Indemnitors, other agreements or otherwise, and Indemnitee’s rights hereunder shall inure to the benefit of the heirs, executors and administrators of Indemnitee. No amendment or alteration of the certificate of incorporation, bylaws, certificate of limited partnership, partnership agreement, certificate of formation, limited liability company agreement, or comparable organizational documents of the Indemnitors or any other agreement shall adversely affect the rights provided to Indemnitee under this Agreement. 
Section 12.Enforcement. The Indemnitors shall be precluded from asserting in any judicial proceeding that the procedures and presumptions of this Agreement are not valid, binding and enforceable. Each of the Indemnitors agrees that its execution of this Agreement shall constitute a stipulation by which it shall be irrevocably bound in any court of competent jurisdiction in which a proceeding by Indemnitee for enforcement of his rights hereunder shall have been commenced, continued or appealed, that its obligations set forth in this Agreement are unique and special, and that failure of the Indemnitors to comply with the provisions of this Agreement will cause irreparable and irremediable injury to Indemnitee, for which a remedy at law will be inadequate. As a result, in addition to any other right or remedy Indemnitee may have at law or in equity with respect to breach of this Agreement, Indemnitee shall be entitled to injunctive or mandatory relief directing specific performance by the Indemnitors of their respective obligations under this Agreement. 
Section 13.No Construction as Employment Agreement. Nothing contained herein shall be construed as giving Indemnitee any right to be retained as a director or officer of the Company or in the employ of the Indemnitors. For the avoidance of doubt, the indemnification, advancement of expenses and contribution provided under this Agreement shall continue as to the Indemnitee even though he may have ceased for any reason whatsoever to be a director, officer, employee or agent of the Company, any other Indemnitor or any Primary Obligor, as the case may be. 
Section 14.Interpretation of Agreement. It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide indemnification to Indemnitee to the fullest extent now or hereafter permitted by applicable law.  In the event of any change in applicable law, statute or rule which narrows the right of Indemnitee to indemnification, advancement of expenses or contribution from an Indemnitor hereunder, such change, to the extent not otherwise required by such law, shall have no effect on this Agreement and the rights and obligations hereunder.
Section 15.Entire Agreement. Subject to Section 11, this Agreement and the documents expressly referred to herein constitute the entire agreement between the parties hereto with respect to the matters covered hereby, and any other prior or contemporaneous oral or written understandings or agreements with respect to the matters covered hereby are expressly superseded by this Agreement. 
Section 16.Modification and Waiver. No supplement, modification, waiver or amendment of this Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. For the avoidance of doubt, this Agreement may not be terminated by the Indemnitors without Indemnitee’s prior written consent. 
Section 17.Successor and Assigns. All of the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto and their respective successors, assigns, heirs, executors, administrators and legal representatives. Each of the Indemnitors shall require and cause any direct or indirect successor (whether by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of such Indemnitor, by written agreement in form and substance reasonably satisfactory to Indemnitee, to expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the such Indemnitor would be required to perform if no such succession had taken place. 
Section 18.Service of Process and Venue. Each of the parties hereto hereby irrevocably and unconditionally (a) agrees that any action or proceeding arising out of or in connection with this Agreement may be brought in the Court of Chancery of the State of Delaware (the “Delaware Court”), (b) consents to submit to the non-exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (c) appoints, to the extent such Indemnitor is not otherwise subject to service of process in the State of Delaware, irrevocably  Corporation Service Company, 251 Little Falls Drive, Wilmington, New Castle County, Delaware 19808 as its agent in the State of Delaware for acceptance of legal process in connection with any such action or proceeding against such Indemnitor with the same legal force and validity as if served upon such Indemnitor personally within the State of Delaware, (d) waives any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (e) waives, and agrees not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum. 
Section 19.Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflicts of laws rules.  If a court of competent jurisdiction shall make a final determination that the provisions of the law of any state other than Delaware govern indemnification by the Indemnitors of Indemnitee, then the indemnification provided under this Agreement shall in all instances be enforceable to the fullest extent permitted under such law, notwithstanding any provision of this Agreement to the contrary.
Section 20.Counterparts. This Agreement may be executed and delivered in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.  One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of this Agreement. 
Section 21.Interpretation.  
(a)    Unless a clear contrary intention appears: (i) the defined terms herein shall apply equally to both the singular and plural forms of such terms; (ii) reference to any person includes such person’s successors and assigns but, if applicable, only if such successors and assigns are not prohibited by this Agreement, and reference to a person in a particular capacity excludes such person in any other capacity or individually; (iii) any pronoun shall include the corresponding masculine, feminine and neuter forms; (iv) reference to any agreement, document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof; (v) reference to any law, rule or regulation means such law, rule or regulation as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder, and reference to any section or other provision of any law, rule or regulation means that provision of such law, rule or regulation from time to time in effect and constituting the substantive amendment, modification, codification, replacement or reenactment of such section or other provision; (vi) “hereunder,” “hereof,” “hereto,” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular article, section or other provision hereof; (vii) numbered or lettered articles, sections and subsections herein contained refer to articles, sections and subsections of this Agreement; (viii) “including” (and with correlative meaning “include”) means including without limiting the generality of any description preceding such term; (ix) “or” is used in the inclusive sense of “and/or”; (x) references to documents, instruments or agreements shall be deemed to refer as well to all addenda, exhibits, schedules or amendments thereto; and (xi) reference to dollars or $ shall be deemed to refer to U.S. dollars.
(b)    All headings herein are inserted only for convenience and ease of reference and are not to be considered in the construction or interpretation of any provision of this Agreement.
 [Signature Pages Follow]

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

ARES MANAGEMENT CORPORATION
    

By:  ________________________________
        Name:
        Title:

ARES MANAGEMENT GP LLC
    

By:  ________________________________
        Name:
        Title:

ARES HOLDINGS L.P.
    
By: ARES HOLDCO LLC  
its General Partner

By: ARES HOLDINGS INC. 
its sole member

By:  ________________________________
        Name:
        Title:

                        
ARES INVESTMENTS L.P.
    
By: AI HOLDCO LLC,  
its General Partner

By: ARES AI HOLDINGS L.P., 
its sole member

By: ARES MANAGEMENT CORPORATION, 
its General Partner

By:  ________________________________
        Name:
        Title:

                        
ARES OFFSHORE HOLDINGS L.P.
    
By: AOF HOLDCO LLC, 
its General Partner

By: ARES OFFSHORE HOLDINGS, LTD.,  
its sole member

By:  ________________________________
        Name:
        Title:

                    

    
INDEMNITEE

____________________________________
Name:
Address:

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________Exhibit

Exhibit 10.19

FORM OF OPTION AGREEMENT PURSUANT TO THE 
ARES MANAGEMENT CORPORATION
SECOND AMENDED & RESTATED 2014 EQUITY INCENTIVE PLAN

THIS AGREEMENT (the “Agreement”) is entered into as of          (the “Grant Date”), by and between Ares Management Corporation, a Delaware corporation (the “Company”), and          (the “Participant”).  Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Ares Management Corporation Second Amended & Restated 2014 Equity Incentive Plan (the “Plan”).
W I T N E S S E T H:
WHEREAS, the Company has adopted the Plan, a copy of which has been delivered to the Participant, which is administered by the Committee; and
WHEREAS, pursuant to Article VI of the Plan, the Committee may grant Options to Service Providers under the Plan; and
WHEREAS, the Participant is a Service Provider under the Plan.
NOW, THEREFORE, the parties agree as follows:
1.   Option.
The Committee hereby grants this non-qualified option (the “Option”) as of the Grant Date, pursuant to the Plan, to purchase the number of Common Shares set forth below to the Participant.  [The Participant agrees to execute, on or before          , the fair competition agreement (the “FCA”) between the Participant and the Company (or another entity designated by the committee) in the form provided to the Participant in connection with this grant, and if the Participant does not execute the FCA prior to such date, the Option shall be forfeited on such date without compensation.]   
2.       Tax Matters.
The Option is not intended to qualify as an “incentive stock option” under Section 422 of the Code.
3.       Common Shares Subject to Option; Share Exercise Price.  
Subject to the Plan and the terms and conditions herein and therein, the Option entitles the Participant to purchase from the Company, upon exercise thereof,          Common Shares.  The exercise price under the Option is $          for each Common Share (the “Exercise Price”).
4.       Vesting.   
(a)       [          ] of the Common Shares subject to the Option shall vest and become exercisable on each of the [          ] anniversar[y] [ies] of the Grant Date (the “Vesting Dates”); provided that the Participant has not had a Termination prior to the applicable Vesting Date.  There shall be no proportionate or partial vesting in the periods prior to each Vesting Date.  Except as expressly provided in Sections 4(b) or 4(c), the unvested portion of the Option will be immediately forfeited without compensation on the Participant’s Termination for any reason.  
(b)       If the Participant incurs a Termination by the Company on account of the Participant’s death or Disability, 50% of the Option granted herein, to the extent outstanding and unvested as of the effective date of such Termination, shall vest and become exercisable on such Termination, which shall be a Vesting Date. 
(c)       If, at a time when the Participant’s corporate title with an operating Affiliate or administrative subsidiary of the Company (as determined by the Company) is “Partner”, the Participant incurs a Termination by the Company without Cause, any portion of the Option that is outstanding and unvested as of such Termination and that is scheduled to vest on or prior to the twelve (12) month anniversary of such Termination shall vest on such Termination, which shall be a Vesting Date. 
5.       Exercise.  
To exercise the Option, unless otherwise directed or permitted by the Committee, the Participant must:
(a)       execute and deliver to the Company a properly completed Notice of Exercise in the form attached hereto as Exhibit A;
(b)       execute and deliver such other documentation as required by the Committee; and
(c)       remit the aggregate Exercise Price to the Company in full, payable (i) in cash or by check, bank draft or money order payable to the order of the Company or (ii) on such other terms and conditions as may be acceptable to the Committee.
6.       Withholding.
The Participant hereby authorizes the Company, or an Affiliate thereof to which the Participant provides services, to satisfy applicable income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items (“Tax-Related Items”), with respect to any exercise, issuance, transfer, or other taxable event under this Agreement or the Plan by withholding from the proceeds of the sale of Common Shares acquired upon exercise of the Option either through a voluntary sale authorized by the Company or through a mandatory sale arranged by the Company or any of its Affiliates on the Company’s behalf pursuant to this authorization to cover the amount of such Tax Related Items.  The Participant further authorizes the Company or the applicable Affiliate to take such action as may be necessary in the opinion of the Company or the applicable Affiliate to withhold from any compensation or other amount owing to the Company to satisfy all obligations for the payment of such Tax-Related Items. Without limiting the foregoing, the Committee may, from time to time, permit the Company to make arrangements prior to any exercise of the Option to pay the applicable Tax-Related Items in a manner prescribed by the Committee, including by cash, check, bank draft or money order.  The Participant acknowledges that, regardless of any action taken by the Company or any of its Affiliates, the ultimate liability for all Tax-Related Items is and remains the Participant’s responsibility and may exceed the amount actually withheld by the Company or any of its Affiliates. The Company may refuse to issue or deliver the Common Shares upon exercise or the proceeds from the sale of Common Shares following exercise, if the Participant fails to comply with his or her obligations in connection with the Tax-Related Items.
7.       Transfer and Exercise Restrictions.  
Unless otherwise determined by the Committee in accordance with the Plan, (a) no portion of the Option shall be Transferable other than by will or by the laws of descent and distribution and (b) during the lifetime of the Participant, the Option may be exercised only by the Participant or the Participant’s guardian or legal representative.  Any attempt to Transfer or exercise the Option other than in accordance with the Plan shall be void and unenforceable against the Company and its Affiliates.
8.       Option Term.  
The term of the Option shall be until the tenth anniversary of the Grant Date, after which time it shall expire (the “Expiration Date”).  Notwithstanding anything herein to the contrary, upon the Expiration Date, the Option (including any vested portion thereof) shall be immediately forfeited, canceled and terminated for no consideration and no longer shall be exercisable.  The Option is subject to termination prior to the Expiration Date to the extent provided in this Agreement and the Plan.
9.       Change in Control and Post-Termination Exercise Periods.  
The Option shall not accelerate and vest upon a Change in Control unless otherwise determined by the Committee.  The provisions in the Plan regarding Change in Control shall apply to the Option.  The provisions in the Plan regarding exercise periods following Termination shall apply.
10.       Rights as a Stockholder.  
The Participant shall have no rights as a stockholder with respect to any Common Shares covered by the Option unless and until the Participant has become the holder of record of the Common Share, and no adjustments shall be made for dividends (whether in cash, in kind or other property) or other rights in respect of any such Common Shares, except as otherwise specifically provided for in the Plan.
11.       Provisions of Plan Control.  
This Agreement is subject to all the terms, conditions and provisions of the Plan, including the amendment provisions thereof, and to such rules, regulations and interpretations relating to the Plan as may be adopted by the Committee and as may be in effect from time to time.  The Plan is incorporated herein by reference.  If and to the extent that this Agreement conflicts or is inconsistent with the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly.
12.       Notices.  
All notices, demands or requests made pursuant to, under or by virtue of this Agreement must be in writing and sent to the party to which the notice, demand or request is being made:
(a)       unless otherwise specified by the Company in a notice delivered by the Company in accordance with this section, any notice required to be delivered to the Company shall be properly delivered if delivered to:
Ares Management Corporation 
2000 Avenue of the Stars, 12th Floor 
Los Angeles, CA 90067 
Attention: General Counsel
(b)       If to the Participant, to the address on file with the Company.
Any notice, demand or request, if made in accordance with this section shall be deemed to have been duly given:  (i) when delivered in person; (ii) three days after being sent by United States mail, or foreign equivalent; or (iii) on the first business day following the date of deposit if delivered by a nationally or internationally recognized overnight delivery service.
13.       No Right to Employment or Services.  
This Agreement is not an agreement of employment or services.  None of this Agreement, the Plan or the grant of the Option shall (a) obligate the Company to employ or otherwise retain, or to continue to employ or otherwise retain, the Participant for any specific time period or (b) modify or limit in any respect the Company or its Affiliates’ right to terminate or modify the Participant’s employment, services or compensation.
14.       Transfer of Personal Data.  
The Participant authorizes, agrees and unambiguously consents to the transmission by the Company of any personal data information related to the Option awarded under this Agreement, for legitimate business purposes (including, without limitation, the administration of the Plan) out of the Participant’s home country and including to countries with less data protection than the data protection provided by the Participant’s home country.  This authorization/consent is freely given by the Participant.
15.       Dispute Resolution.  
(a)       The exclusive remedy for determining any and all disputes, claims or causes of action, in law or equity, arising out of or related to this Agreement, or the breach, termination, enforcement, interpretation or validity thereof will, to the fullest extent permitted by law, be determined by: (i) the dispute resolution provisions in any employment, consulting agreement, or similar agreement, between the Company or any of its Affiliates and the Participant or, if none, (ii) the Company or any of its Affiliates’ mandatory dispute resolution procedures as may be in effect from time to time with respect to matters arising out of or relating to Participant’s employment or service with the Company or, if none, (iii) by final, binding and confidential arbitration in [Los Angeles, California][New York, New York], before one arbitrator, conducted by the Judicial Arbitration and Mediation Services/Endispute, Inc. (“JAMS”), or its successor.  If disputes are settled pursuant to prong (iii) of this Section 15, Section 15(b) shall apply.
(b)       Disputes shall be resolved in accordance with the Federal Arbitration Act, 9 U.S.C. §§1–16, and JAMS’ Employment Arbitration Rules and Procedures then in effect.  The arbitrator will have the same, but no greater, remedial authority than would a court of law and shall issue a written decision including the arbitrator’s essential findings and conclusions and a statement of the award.  Judgment upon the award rendered by the arbitrator may be entered by any court having jurisdiction thereof.  This agreement to resolve any disputes by binding arbitration extends to claims by or against the Company or any of its Affiliates or any of their respective past or present representatives and applies to claims arising out of federal, state and local laws, including claims of alleged discrimination on any basis, as well as to claims arising under the common law.  The prevailing party in any such arbitration proceeding, as determined by the arbitrator, or in any proceeding to enforce the arbitration award, will be entitled, to the extent permitted by law, to reimbursement from the other party for all of the prevailing party’s costs (including the arbitrator’s compensation), expenses and attorneys’ fees.  If no party entirely prevails in such arbitration or proceeding, the arbitrator or court shall apportion an award of such fees based on the relative success of each party.  In the event of a conflict between this provision and any provision in the applicable rules of JAMS, the provisions of this Agreement will prevail.
16.       Section 409A.  
The Option is intended to be exempt from the applicable requirements of Section 409A and shall be limited, construed and interpreted in accordance with such intent; provided, that the Company does not guarantee to the Participant any particular tax treatment of the Option.  In no event whatsoever shall the Company be liable for any additional tax, interest or penalties that may be imposed on the Participant by Section 409A or any damages for failing to comply with Section 409A.
17.       Miscellaneous.  
(a)       Successors.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, legal representatives, successors and assigns.
(b)       Governing Law.  All matters arising out of or relating to this Agreement and the transactions contemplated hereby, including its validity, interpretation, construction, performance and enforcement, shall be governed by and construed in accordance with the internal laws of the State of Delaware, without giving effect to its principles of conflict of laws.
(c)       Counterparts; Electronic Acceptance.  This Agreement may be executed in one or more counterparts (including by facsimile or electronic transmission), all of which taken together shall constitute one contract.  Alternatively, this Agreement may be granted to and accepted by the Participant electronically.
(d)       Interpretation.  Unless a clear contrary intention appears: (i) the defined terms herein shall apply equally to both the singular and plural forms of such terms; (ii) reference to any Person includes such Person’s successors and assigns but, if applicable, only if such successors and assigns are not prohibited by the Plan or the Agreement, and reference to a Person in a particular capacity excludes such Person in any other capacity or individually; (iii) any pronoun shall include the corresponding masculine, feminine and neuter forms; (iv) reference to any agreement, document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof; (v) reference to any law, rule or regulation means such law, rule or regulation as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder, and reference to any section or other provision of any law, rule or regulation means that provision of such law, rule or regulation from time to time in effect and constituting the substantive amendment, modification, codification, replacement or reenactment of such section or other provision; (vi) “hereunder,” “hereof,” “hereto,”  and words of similar import shall be deemed references to the Agreement as a whole and not to any particular article, section or other provision hereof; (vii) numbered or lettered articles, sections and subsections herein contained refer to articles, sections and subsections of the Agreement; (viii) “including” (and with correlative meaning “include”) means including without limiting the generality of any description preceding such term; (ix) “or” is used in the inclusive sense of “and/or”; (x) references to documents, instruments or agreements shall be deemed to refer as well to all addenda, exhibits, schedules or amendments thereto; and (xi) reference to dollars or $ shall be deemed to refer to U.S. dollars.  
(e)       No Strict Construction.  This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted.
(f)       Waiver.  The failure of any party hereto at any time to require performance by another party of any provision of this Agreement shall not affect the right of such party to require performance of that provision, and any waiver by any party of any breach of any provision of this Agreement shall not be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the provision itself, or a waiver of any right under this Agreement.
18.       Language.
If the Participant has received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control. 
19.       NO ACQUIRED RIGHTS.  
THE PARTICIPANT ACKNOWLEDGES AND AGREES THAT: (A) THE COMPANY MAY TERMINATE OR AMEND THE PLAN AT ANY TIME; (B) THE AWARD OF THE OPTION MADE UNDER THIS AGREEMENT IS COMPLETELY INDEPENDENT OF ANY OTHER AWARD OR GRANT AND IS MADE AT THE SOLE DISCRETION OF THE COMPANY;  (C) NO PAST GRANTS OR AWARDS (INCLUDING THE OPTION AWARDED HEREUNDER) GIVE THE PARTICIPANT ANY RIGHT TO ANY GRANTS OR AWARDS IN THE FUTURE WHATSOEVER; (D) THE PLAN AND THE AGREEMENT DO NOT FORM PART OF THE TERMS OF THE PARTICIPANT’S EMPLOYMENT; AND (E) BY PARTICIPATING IN THE PLAN AND RECEIVING AN AWARD PURSUANT TO THIS AGREEMENT, THE PARTICIPANT WAIVES ALL RIGHTS TO COMPENSATION FOR ANY LOSS IN RELATION TO THE PLAN OR THIS AGREEMENT, INCLUDING ANY LOSS OF RIGHTS IN ANY CIRCUMSTANCES INCLUDING TERMINATION OF EMPLOYMENT.
[Remainder of This Page Intentionally Left Blank]
IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above written.

ARES MANAGEMENT CORPORATION

By:      
Name:   
Title:

 
Participant Name: 

ARES MANAGEMENT CORPORATION
SECOND AMENDED & RESTATED 2014 EQUITY INCENTIVE PLAN
NOTICE OF EXERCISE

Ares Management Corporation 
2000 Avenue of the Stars, 12th Floor 
Los Angeles, CA 90067 
Attention: General Counsel
Date:       , 20__
Ladies and Gentlemen:
This document constitutes notice under my option agreement that I elect to purchase the number of Common Shares for the aggregate payment set forth below.  Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Ares Management Corporation Amended & Restated 2014 Equity Incentive Plan (the “Plan”).
	
		
	Option number and Grant Date:
	 

	Number of Common Shares as to which the Option is exercised:
	 

	Exercise Price:
	$

	Aggregate Exercise Price (number of Common Shares as to which the Option is exercised multiplied by the Exercise Price):
	$

I acknowledge that I remain subject to the applicable provisions of my Option Agreement and the Plan.

Any notice required or permitted by the Agreement will be given to me at the address listed below my signature hereto.
 Attached is cash, or a check, bank draft or money order payable to Ares Management Corporation or the applicable Affiliate of Ares Management Corporation provided by the Company, in the amount of $___________ (aggregate Exercise Price).
	
		
	Estimated withholding taxes (as provided by the Company)
	$

 Attached is cash, or a check, bank draft or money order payable to Ares Management Corporation or the applicable Affiliate of Ares Management Corporation provided by the Company, in the amount of $___________ (estimated withholding taxes).
 I have made arrangements with the Company to have applicable withholding taxes withheld from other compensation.

 
    [Participant]
Address:
 
                     
                     
Telephone:                 
Facsimile:                 
Attention:

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