Document:

Exhibit

Exhibit 10.1.2

FIRST AMENDMENT TO CREDIT AGREEMENT
This First Amendment to Credit Agreement, dated as of June 29, 2016 (this “Amendment”), is made by and among ATHENE HOLDING LTD., an exempted company incorporated under the laws of Bermuda (“AHL”), ATHENE LIFE RE LTD., an exempted company incorporated under the laws of Bermuda (“Athene Life Re”), ATHENE USA CORPORATION, an Iowa corporation (“AUSA”, together with AHL and Athene Life Re, collectively, the “Borrowers” and individually, each a “Borrower”), the Lenders party hereto, and CITIBANK, N.A., as administrative agent for the Lenders under the Credit Agreement defined below (in such capacity, the “Administrative Agent”).
RECITALS
WHEREAS, reference is made to that certain Credit Agreement, dated as of January 22, 2016 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used herein but not otherwise defined shall have the meanings assigned to such terms in the Credit Agreement), by and among the Borrowers, the Lenders from time to time party thereto and the Administrative Agent; and
WHEREAS, the Borrowers have requested that the Lenders amend certain Provisions of the Credit Agreement, and the Lenders have agreed to make such amendments, in each case, upon the terms and subject to the conditions set forth herein. 
NOW THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto hereby agree as follows:
Section 1.    Amendments.
(a)    Schedule 5.09 of the Credit Agreement is hereby replaced with Schedule 5.09 attached hereto;
(b)    Section 6.01(ii) of the Credit Agreement is hereby amended to insert the following proviso immediately before the semicolon at the end thereof: “; provided, that such financial statements for the fiscal quarter ended March 31, 2016 may be delivered by the Borrowers to the Administrative Agent and each Lender no later than June 30, 2016”;
(c)    Section 6.01(iii) of the Credit Agreement is hereby amended to insert the following proviso immediately before the semicolon at the end thereof: “; provided that the annual Statutory Statement of Athene Life Re for the fiscal year ended December 31, 2015 may be delivered by the Borrowers to the Administrative Agent no later than June 30, 2016”;
(d)    Section 6.01(iv) of the Credit Agreement is hereby amended by replacing the phrase “five days” with “five Business Days” in the first line thereof; 
(e)    Section 6.01(iv) of the Credit Agreement is hereby amended to insert the following proviso immediately before the semicolon at the end thereof: “; provided that the quarterly Statutory Statement of each Material Insurance Subsidiary for the fiscal quarter ended March 31, 2016 may be delivered by the Borrowers to the Administrative Agent no later than June 30, 2016”; and
(f)    Section 6.02(i)(C) of the Credit Agreement is hereby amended and restated to read as follows:
(C) if the aggregate total assets of the Borrowers and the Material Subsidiaries represent less than 75% of the Consolidated Total Assets of AHL and its Subsidiaries (based upon and as of the date of delivery of the most recent consolidated financial statements of AHL furnished pursuant to Section 4.01(a)(viii), Section 6.01(i) or 6.01(ii), as applicable), identifying one or more Subsidiaries that shall thereafter be designated (and the Borrowers shall thereupon so designate such Subsidiaries as) Material Subsidiaries hereunder so that the total assets of all of the Subsidiaries that are not Material Subsidiaries shall not exceed 25% of the Consolidated Total Assets of AHL and its Subsidiaries (based upon and as of the date of delivery of the most recent consolidated financial statements of AHL furnished pursuant to Section 4.01(a)(viii), Section 6.01(i) or 6.01(ii), as applicable) as of the last day of the period for which such financial statements are delivered.
Section 2.    Conditions to Effectiveness.  This Amendment shall become effective as of the date first set forth above, subject to satisfaction of the following conditions precedent:  (i) the Administrative Agent shall have received counterparts of this Amendment that, when taken together, bear the signatures of the Borrowers and the Required Lenders; (ii) except to the extent waived hereby, the representations and warranties of the Borrowers contained in the Credit Agreement and each other Loan Document shall be true and correct in all material respects (except that those representations and warranties which are qualified by materiality or Material Adverse Effect shall be true and correct in all respects) as of the date first set forth above with the same effect as if such representations and warranties had been made on and as of such date, except that any such representation or warranty which is expressly made only as of a specified date need only be true and correct in all material respects (except that those representations and warranties which are qualified by materiality or Material Adverse Effect shall be true and correct in all respects) as of such date; and (iii) after giving effect to this Amendment, no Default or Event of Default shall have occurred or be continuing.

Exhibit 10.1.2

Section 3.    Waiver.  The Administrative Agent and the Required Lenders hereby waive any Default or Event of Default related to the extensions of time and amendments set forth in Section 1 above.
Section 4.    Force and Effect.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders or the Administrative Agent under the Credit Agreement or any of the other Loan Documents, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  This Amendment shall apply and be effective (i) only with respect to the provisions of the Credit Agreement specifically referred to herein and (ii) only for this single instance and is not intended to waive compliance with any provision of the Credit Agreement or any other Loan Document for future periods.   After the date hereof, any reference to the Credit Agreement shall mean the Credit Agreement as modified hereby.  This Amendment shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents.
Section 5.    Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto in separate counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic imaging means (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Amendment.
Section 6.    Severability.  If any provision of this Amendment is held to be illegal, invalid or unenforceable, (i) the legality, validity and enforceability of the remaining provisions of this Amendment shall not be affected or impaired thereby and (ii) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
Section 7.    Governing Law.  This Amendment  and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Amendment and the transactions contemplated hereby shall be governed by, and construed in accordance with, the law of the State of New York.
Section 8.    Headings.  The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

[Remainder of Page Intentionally Left Blank]

Exhibit 10.1.2

IN WITNESS WHEREOF, each of the undersigned has executed this Amendment as of the date set forth above.
ATHENE HOLDING LTD.
By: /s/ Zachary Jones    
Name: Zachary E. Jones    
Title: Senior Vice President, Chief Financial Officer, International    

ATHENE LIFE RE LTD.
By: /s/ Frank L. Gillis    
Name: Frank L. Gillis    
Title: Chief Executive Officer    

ATHENE USA CORPORATION
By: /s/ Guy H. Smith, III    
Name: Guy Hudson Smith, III    
Title: President    

Exhibit 10.1.2

CITIBANK, N.A., as Administrative Agent and a Lender
By: /s/ Peter C. Bickford    
Name: Peter C. Bickford    
Title: Vice President and Managing Director    

ROYAL BANK OF CANADA, as a Syndication Agent and a Lender
By: /s/ Brij Grewal    
Name: Brij Grewal    
Title: Authorized Signatory    

BARCLAYS BANK PLC, as a Syndication Agent and a Lender
By: /s/ Mathew Cybul    
Name: Mathew Cybul
Title: Assistant Vice President    

DEUTSCHE BANK SECURITIES INC., as a Documentation Agent
By: /s/ John S. McGill    
Name: John S. McGill
Title: Director
By: /s/ Scott Flieger    
Name: Scott Flieger
Title: Managing Director

Exhibit 10.1.2

DEUTSCHE BANK AG NEW YORK BRANCH, as a Lender
By: /s/ Virginia Cosenza    
Name: Virginia Cosenza
Title: Vice President
By: /s/ Ming K. Chu    
Name: Ming K. Chu
Title: Director

BMO HARRIS BANK, N.A., as a Documentation Agent and a Lender
By: /s/ Debra Basler    
Name: Debra Basler
Title: Managing Director

WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Documentation Agent and a Lender
By: /s/ Kimberly Shaffer    
Name: Kimberly Shaffer
Title: Managing Director

BNP PARIBAS, as a Lender
By: /s/ Marguerite L. Lebon    
Name: Marguerite L. Lebon
Title: Vice President
By: /s/ Michael Albenese    
Name: Michael Albenese
Title: Managing Director

Exhibit 10.1.2

U.S. BANK NATIONAL ASSOCIATION, as a Lender
By: /s/ Bonnie S. Wiskowski    
Name: Bonnie S. Wiskowski    
Title: Vice President

JPMORGAN CHASE BANK, N.A., as a Lender
By: /s/ Kristen M. Murphy    
Name: Kristen M. Murphy
Title: Vice President

BANK OF AMERICA, N.A., as a Lender
By: /s/ Derek Miller    
Name: Derek Miller
Title: Vice President

GOLDMAN SACHS BANK USA, as a Lender
By: /s/ Jerry Li    
Name: Jerry Li
Title: Authorized Signatory

MORGAN STANLEY BANK, N.A., as a Lender
By: /s/ Harry Comninellis    
Name: Harry Comninellis
Title: Authorized Signatory

Exhibit 10.1.2

CREDIT SUISSE AG, Cayman Islands Branch, as a Lender
By: /s/ Doreen Barr    
Name: Doreen Barr
Title: Authorized Signatory
By: /s/ Nicholas Goss    
Name: Nicholas Goss
Title: Authorized Signatory

THE ROYAL BANK OF SCOTLAND PLC, as a Lender
By: /s/ Joseph A. Conte    
Name: Joseph A. Conte, CFA
Title: Vice President

SUNTRUST BANK, as a Lender
By: /s/ Paula Mueller    
Name: Paula Mueller
Title: Director

SOCIETE GENERALE, as a Lender
By: /s/ Shelley Yu    
Name: Shelley Yu
Title: Director

Exhibit 10.1.2

Schedule 5.09
Subsidiaries
	
			
	Subsidiary
	Jurisdiction of incorporation
	Percentage of Equity Interests Owned

	Athene Life Re Ltd.
	Bermuda
	100% of common stock owned by AHL

	Athene USA Corporation (“AUSA”)
	Iowa
	100% of common stock owned by AHL

	AGER Bermuda Holding Ltd. (“AGER”)
	Bermuda
	100% of common stock owned by AHL

	Athene Deutschland Verwaltungs GmbH (“ADV”)
	Germany
	100% of common stock owned by AGER

	Athene Deutschland Holding GmbH & Co. KG (“ADKG”)
	Germany
	100% of the limited partner interests owned by AGER; 100% of general partner interests owned by ADV

	Athene Deutschland GmbH (“AD”)
	Germany
	100% of the common stock owned by ADKG

	Athene Lebensversicherung AG
	Germany
	100% of common stock is owned by AD

	Athene Pensionskasse AG
	Germany
	100% of common stock owned by AD

	Athene Deutschland Anlagemanagement GmbH
	Germany
	100% of common stock owned by AD

	Athene Real Estate Management Company S.a.r.l (“AREM”)
	Luxembourg
	93.6% of membership interest owned by AD
0.8% of membership interest owned by ADKG

	Athene Employee Services, LLC
	Iowa
	AUSA is the sole member

	Athene London Assignment Corporation
	Delaware
	100% of common stock owned by AUSA

	Athene Assignment Corporation
	Delaware
	100% of common stock owned by AUSA

	Athene Annuity & Life Assurance Company (“AADE”)
	Delaware
	100% of common stock owned by AUSA

	ACM Trademarks, L.L.C
	Iowa
	AUSA is the sole member

	ARPH (Headquarters Building), LLC
	Iowa
	AUSA is the sole member

	Athene Life Insurance Company
	Delaware
	100% of common stock is owned by AADE

	Athene Annuity and Life Company (“AAIA”)
	Iowa
	100% of common stock is owned by AADE

	P.L. Assigned Services, Inc.
	New York
	100% of common stock is owned by AADE

	Athene Annuity & Life Assurance Company of New York (“AANY”)
	New York
	100% of common stock is owned by AAIA

	Structured Annuity Reinsurance Company
	Iowa
	100% of common stock is owned by AAIA

	Athene Securities, LLC
	Indiana
	AAIA is the sole member

	Centralife Annuities Service, Inc.
	Arizona
	100% of common stock is owned by AAIA

	Athene Re USA IV, Inc.
	Vermont
	100% of common stock is owned by AAIA

	AREI (Renaissance), LLC
	Iowa
	AAIA is the sole member

	AREI (Marketplace), LLC
	Iowa
	AAIA is the sole member

	AREI (Boyette), LLC
	Iowa
	AAIA is the sole member

	AREI (Cedar Valley), LLC
	Iowa
	AAIA is the sole member

	AREI (Watson), LLC
	Iowa
	AAIA is the sole member

	AREI (Brookfield) LLC
	Iowa
	AAIA is the sole member

	AREI (CPB) LLC
	Iowa
	AAIA is the sole member

	Athene Life Insurance Company of New York
	New York
	100% of common stock is owned by AANY

	Elemantae S.A.
	Luxembourg
	100% common stock owned by AREMExhibit

EXHIBIT 10.32.4

Final Execution Version

MASTER SUB-ADVISORY AGREEMENT

 ADDENDUM THREE

This Master Sub-Advisory Agreement Addendum Three is made this 29th day of June, 2018 (this “Addendum”), by and among Athene Asset Management LLC (f/k/a Athene Asset Management, L.P.), a Delaware limited liability company (the “Investment Manager”), Apollo Capital Management, L.P., a Delaware limited partnership (“ACM”), Apollo Global Real Estate Management, L.P., a Delaware limited partnership (“AGREM”), ARM Manager LLC, a Delaware limited liability company (“ARM”), Apollo Longevity, LLC, a Delaware limited liability company (“ALL”) and Apollo Emerging Markets, LLC, a Delaware limited liability company (“AEM” and together with ACM, AGREM, ARM and ALL, the “Sub-Advisors), pursuant to that certain Amended and Restated Master Sub-Advisory Agreement, effective as of April 1, 2014 (as further amended, supplemented or modified from time to time, the “Master Sub-Advisory Agreement”) by and among the Investment Manager and the Sub-Advisors. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Master Sub-Advisory Agreement.

WHEREAS, the Investment Manager and the Sub-Advisors entered into the Master Sub-Advisory Agreement pursuant to which the Investment Manager retained the Sub- Advisors to manage an investment portfolio of one or more Accounts;

WHEREAS, Section 2(k) of the Master Sub-Advisory Agreement provides that the parties may enter into an arrangement, either pursuant to an Addendum or other written arrangement, whereby the Sub-Advisor would have discretion with respect to certain transactions other than as set forth in Section 2(a) of the Master Sub-Advisory Agreement, such as to execute transactions for the Accounts without seeking prior consent from the Investment Manager so long as they fit within, among other things, certain prescribed guidelines;

WHEREAS, one or more Accounts desire to invest in Apollo Hybrid Value Fund,
(the “HV Fund”), and in connection with such investment, one or more Accounts also desire to invest on an incremental direct investment basis, following the same strategy as the HV Fund, alongside (but not through or part of) the HV Fund (the “Hybrid Value Managed Account”) via an investment in AA Direct, L.P., a Delaware limited partnership formed to facilitate the Hybrid Value Managed Account (“AA Direct”);

WHEREAS, the Investment Manager and Sub-Advisors desire to permit ACM to provide advice and execute certain transactions for the Accounts with respect to the Hybrid Value Managed Account and have agreed to the payment of certain fees for services provided by the Sub-Advisors to the Investment Manager in respect of the Hybrid Value Managed Account as set forth in Schedule 2-5 attached hereto; and

WHEREAS, this Addendum shall be attached to, amend and become a part of the Master Sub-Advisory Agreement.

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

1.Amendments to Schedule 2-1 of the Master Sub-Advisory Agreement. Schedule 2-1 of the Master Sub-Advisory Agreement is hereby amended and replaced in its entirety with Exhibit A attached hereto.

2.Amendments to Schedule 2 of the Master Sub-Advisory Agreement. Schedule 2 of the Master Sub-Advisory Agreement is hereby amended to include as Schedule 2-5, the form of Exhibit B attached hereto.

3.Amendments to Schedule 3 of the Master Sub-Advisory Agreement. Schedule 3 of the Master Sub-Advisory Agreement is hereby amended to include as Schedule 3-1, the form of Exhibit C hereto.

4.Addendum to Master Sub-Advisory Agreement. This Addendum constitutes an Addendum to the Master Sub-Advisory Agreement (as such term is defined in Section 1 of the Master Sub-Advisory Agreement). This Addendum shall be deemed to be attached to, amend and become a part of the Master Sub-Advisory Agreement and the terms of the Master Sub-Advisory Agreement shall be amended, supplemented or modified by the terms of this Addendum as applicable. Any reference to “this Agreement” in the Master Sub-Advisory Agreement shall be deemed to include the terms set forth in this Addendum.

5.Ratification. Except with respect to matters expressly provided for herein, all terms, provisions and conditions of the Master Sub-Advisory Agreement are hereby ratified and shall remain unchanged and continue in full force and effect.

6.Conflicts. In the event of any conflict or inconsistency between the terms of this Addendum and those of the Master Sub-Advisory Agreement, this Addendum will control.

1

EXHIBIT 10.32.4

IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be executed by their respective duly authorized officers as of the date and year first above written.

ATHENE ASSET MANAGEMENT LLC
                
/s/ James R. Belardi
Name: James R. Belardi
Title: Chief Executive Officer

APOLLO CAPITAL MANAGEMENT, L.P.
                
By: Apollo Capital Management, GP, LLC, 
its General Partner

/s/ Joseph D. Glatt
Name: Joseph D. Glatt
Title: Vice President

APOLLO GLOBAL REAL ESTATE MANAGEMENT, L.P.
                
By: Apollo Global Real Estate Management, GP, LLC, 
its General Partner

/s/ Joseph D. Glatt
Name: Joseph D. Glatt
Title: Vice President

ARM MANAGER LLC

                            
/s/ Joseph D. Glatt
Name: Joseph D. Glatt
Title: Vice President

APOLLO LONGEVITY, LLC
                
By: Apollo Capital Management L.P., its sole member
By: Apollo Capital Management GP, LLC, its General Partner

/s/ Joseph D. Glatt
Name: Joseph D. Glatt
Title: Vice President

APOLLO EMERGING MARKETS, LLC
                
By: Apollo Capital Management L.P., its sole member
By: Apollo Capital Management GP, LLC, its General Partner

/s/ Joseph D. Glatt
Name: Joseph D. Glatt
Title: Vice President

Signature Page to Master Sub-Advisory Agreement Addendum Three

EXHIBIT 10.32.4

Exhibit A

Schedule 2-1

Management Fee Schedule (all Sub-Advisors other than Apollo Royalties Management LLC)

		
	1.
	Management Fee.  In consideration of the services performed under the Agreement, the Investment Manager shall pay to the Sub-Advisors (allocated among such Sub-Advisors as such Sub-Advisors shall determine) a management fee (the “Management Fee”), calculated and paid quarterly in arrears as a percentage of Average Month-End Net Asset Value of assets in all the Accounts managed by the Sub-Advisors (unless otherwise agreed to by the parties1), (other than Third Party CLO Equity Managed Account (as described on Schedule 2-3)2 and the Hybrid Value Managed Account (as described on Schedule 2-53)) pursuant to the following schedule, which shall take effect with respect to new and existing assets as of January 1, 2017:

1 For the avoidance of doubt but subject to Section 2(a), to the extent that a Sub-Adviser invests on behalf of the Account in an affiliate-managed CLO (a)  to the extent that such investment is on a secondary basis in one of the debt and/or equity tranches of such CLO, the Account will be charged fees pursuant to this Schedule 2-1; and (b) to the extent that such investment is on a primary basis, the agreement governing the Account’s investment into the affiliate-managed CLO will govern the treatment of fees in such instance (and not, for the avoidance of doubt, this Schedule 2-1). In addition, the Investment Manager shall be responsible for any servicing fees associated with the sub-advised mortgage and mezzanine real estate loan portfolio.
2 For the avoidance of doubt, this fee schedule does not apply to future or existing investments in Apollo funds (which as of the date hereof includes but is not limited to TRF, COF 3, SCRF IV, AA Direct, EPFs, FCIs, all the ALM and ALME CLO sand related warehouses, the levered CMBS funds and APC), or to any investments made by Apollo Royalties Management LLC. Additionally, this fee schedule does not apply to investments in MCF CLO II (f/k/a Kirkwood), which is covered by Schedule 2-3 hereof).  Fees with respect to the Third Party CLO Equity Managed Account are charged pursuant to Schedule 2-3, and the Project Orange Trade will be included in the Third Party CLO Equity Managed Account and charged accordingly.
3 Fees with respect to the Hybrid Value Managed Account are charged pursuant to Schedule 2-5.  In addition, fees with respect to the Hybrid Value Managed Account are in addition to, and not set-off against, the fees charged by the HV Fund.

Exhibit A

EXHIBIT 10.32.4

	
			
	Assets Under Management4
	 
	Management Fee Rate5

	< $10,000,000,000
	 
	40 bps (0.40%) per annum

	≥ $10,000,000,000 and < $12,440,936,389
	 
	35 bps (0.35%) per annum

	> $12,440,936,389 and < $16,000,000,000
	 
	40 bps (0.40%) per annum

	> $16,000,000,000
	 
	35 bps (0.35%) per annum

The “Average Month-End Net Asset Value” shall be the average of the month-end aggregate net asset value of the Accounts during the calendar quarter. If the period in respect of which a Management Fee is payable is less than a calendar quarter, then the Management Fee shall be pro rated accordingly. For the avoidance of doubt, for a given month, Average Month-End Net Asset Value shall be calculated based on trade date holdings plus accrued interest.
		
	2.
	Valuation.  Each Sub-Advisor, through its designee, shall (i) be responsible for determining the value of the assets that are purchased for the Accounts that it manages in accordance with such Sub-Advisor’s existing policies and procedures, and (ii) shall use commercially reasonable efforts to submit a proposed valuation of such Accounts within 5 business days (but in no event later than 6 business days) following each month-end to the Investment Manager.  The parties hereto agree to negotiate in good faith as to any objections raised by the Investment Manager about the valuation of assets in the Accounts for purposes of determining the Management Fees.

		
	3.
	Payment of Fees.  The Management Fee will be calculated, billed, and paid quarterly in arrears, based on the Average Month-End Net Asset Value as of the last business day of each and all of the three calendar months during the relevant quarter, or in the case of any partial quarterly period, the last day of each calendar month during the relevant period and the last business day of such period.  The Investment Manager will pay any Management Fees payable hereunder within 30 calendar days following receipt by the Investment Manager of an invoice for such fee, detailing the calculation of such fee.  The Investment Manager and the Sub-Advisors shall agree on the form and substance of such invoice before the first Management Fee billing cycle.  Upon termination of the Agreement, any outstanding Management Fee shall become immediately payable by the Investment Manager.

4 “Assets Under Management” shall be calculated in the aggregate to include the investment assets of or relating to Athene Holding Ltd. (“Athene”) and its subsidiaries, managed by ACM, AGREM, ARM, ALL, AEM or an affiliate thereof, whether under this Agreement or separate sub-advisory agreement with the Investment Manager, including cash and all assets in surplus accounts and funds withheld accounts, modified coinsurance accounts and reinsurance trusts supporting reinsurance agreements entered into by Athene (collectively, “Athene Accounts”) and managed by ACM, AGREM, ARM, ALL and AEM. For the avoidance of doubt, Assets Under Management shall not include future or existing investments in Apollo managed funds (which as of the date hereof includes but is not limited to TRF, COF 3, EPFs, FCIs, all the ALM, ALME or other affiliated CLOs or CLO-sponsored vehicles and related warehouses, APC, the levered CMBS funds) or any investments made by Apollo Royalties Management LLC; provided, that, notwithstanding the foregoing, (a) Assets Under Management shall include investment by any Athene Accounts in the Hybrid Value Managed Account (including, without  limitation investment through AA Direct) and (b) to the extent that the Account invests in any affiliated CLO or CLO-sponsored vehicle pursuant to which the Account is charged fees pursuant to this Schedule 2-1, such investment in such affiliated CLO or CLO-sponsored vehicle shall be included in Assets Under Management.
5 For the avoidance of doubt, this Schedule 2-1 shall not apply to any Apollo controlled investment entities, the fee   schedule of which shall be governed by a separate schedule or other governing document.

		
	4.
	Incentive Fees.  For the avoidance of doubt, the provisions governing incentive fees on existing assets remain intact and shall not be deemed amended by this Agreement. The Investment Manager and each Sub-Advisor may agree in writing from time to time on an incentive fee with respect to particular investments or asset classes managed by such Sub-Advisor.

Exhibit A

EXHIBIT 10.32.4

Exhibit B

Schedule 2-5

Hybrid Value Managed Account

		
	1)
	Management Fee.  In consideration of the services performed under the Agreement and pursuant to this Schedule 2-5, the Investment Manager shall pay a management fee (the “Management Fee”), calculated and paid quarterly in arrears equal to 50 bps (0.50%) per annum on the quarter end cost basis of invested securities in the Hybrid Value Managed Account. 

		
	2)
	Payment of Fees.  The Management Fee will be calculated, billed, and paid quarterly in arrears, as of the last business day of each and all of the four calendar quarters during the relevant calendar year, or in the case of any partial annual period, the last day of each calendar quarter during the relevant period and the last business day of such period.  The Investment Manager will pay any Management Fees payable hereunder within 30 calendar days following receipt by the Investment Manager of an invoice for such fee, detailing the calculation of such fee.  The Investment Manager and the Sub-Advisors shall agree on the form and substance of such invoice before the first Management Fee billing cycle.  Upon termination of the Agreement, any outstanding Management Fee shall become immediately payable by the Investment Manager. 

		
	3)
	Incentive Fee.  In addition to the Management Fee set forth above, the Investment Manager shall pay to ACM an incentive fee equal to three percent (3%) of the realized proceeds (including principal repayments and coupon payments, “Proceeds”) in excess of the cost of each investment recommended by ACM pursuant to this Schedule 2-5 and return of the Preferred Return with respect to each investment, each as fully described below (the “Incentive Fee” and together with the Management Fee, the “Fees”). Specifically, Proceeds from each investment will be allocated as follows:

		
	(i)
	First, to the Investment Manager’s applicable clients (the “Clients”) until such Clients have received an amount equal to the aggregate amount of capital contributions made by such Clients to the Hybrid Value Managed Account (including any Management Fees paid pursuant to this Schedule 2-5 and related to the Hybrid Value Managed Account);

		
	(ii)
	Second, to the applicable Clients until such Clients have received an amount equal to interest at the rate of eight percent (8%) per annum, compounded annually, on the aggregate amount of capital contributions made by such Clients to the Hybrid Value Managed Account (including on any Management Fees paid pursuant to this Schedule 2-5 and related to the Hybrid Value Managed Account) until the relevant dates on which amounts representing such capital contributions and the priority return thereon are distributed; 

		
	(iii)
	Third, 100% to ACM until ACM has received an amount equal to 3% of the sum of the allocations made pursuant to item (ii) above and amounts then and previously allocated pursuant to this item (iii); and

		
	(iv)
	Finally, 97% to the applicable Clients and 3% to ACM.

Upon the termination of the Agreement, a clawback calculation will be completed based on the aggregate Proceeds received from all realized investments recommended by ACM pursuant hereto, and ACM shall be required to repay any Incentive Fee previously paid to ACM to the extent that any realized losses from investments recommended by ACM pursuant to this Schedule 2-5 remain unreturned to the applicable Clients upon such termination.  

		
	4)
	Incentive Fee Payment. Incentive Fee will be paid quarterly in arrears. As referenced in Schedule 2.1, provisions governing incentive fees on existing assets remain intact and shall not be deemed amended by this Agreement. The Investment Manager and each Sub-Advisor may in addition agree in writing from time to time on an incentive fee with respect to particular investments or asset classes managed by such Sub-Advisor.

Exhibit B

EXHIBIT 10.32.4

Exhibit C

Schedule 3-1

Hybrid Value Managed Account - Investment Guidelines

The Investment Guidelines related to the Hybrid Value Managed Account shall be consistent with those contained in the governing documents of AA Direct. Furthermore, each investment made by the Accounts in respect of the HV Fund, shall also be made by the Accounts with respect to the Hybrid Value Managed Account on pro rata based on the amount of capital in the HV Fund and the Hybrid Value Managed Account by clients of the Investment Manager. Notwithstanding the foregoing, the Investment Manager may revoke such investment discretion at any time upon notice to ACM.  This Schedule 3-1 and the Schedule 4 attached to the Agreement may otherwise be amended, supplemented or modified from time to time as agreed to in writing solely by the Investment Manager and ACM without a formal amendment to the Agreement. 

Exhibit C

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