Document:

Tax Receivable Agreement

 Exhibit 10.6 
 TAX RECEIVABLE AGREEMENT 
 dated as of 
 June 18, 2007 

 Table of Contents 
  

					
	  	 	 	  	Page
		 	 ARTICLE I
 DEFINITIONS
	  	
			
	Section 1.01.	 	Definitions	  	2
			
		 	 ARTICLE II
 DETERMINATION OF REALIZED TAX BENEFIT
	  	
	 	  
			
	Section 2.01.	 	Basis Adjustment	  	7
	Section 2.02.	 	Exchange Basis Schedule	  	7
	Section 2.03.	 	Tax Benefit Schedule	  	8
	Section 2.04.	 	Procedures, Amendments	  	8
			
		 	 ARTICLE III
 TAX BENEFIT PAYMENTS
	  	
	 	  
			
	Section 3.01.	 	Payments	  	9
	Section 3.02.	 	No Duplicative Payments	  	9
	Section 3.03.	 	Pro Rata Payments	  	10
			
		 	 ARTICLE IV
 TERMINATION
	  	
	 	  
			
	Section 4.01.	 	Early Termination and Breach of Agreement	  	10
	Section 4.02.	 	Early Termination Notice	  	11
	Section 4.03.	 	Payment upon Early Termination	  	11
			
		 	 ARTICLE V
 SUBORDINATION AND LATE PAYMENTS
	  	
	 	  
			
	Section 5.01.	 	Subordination.	  	11
	Section 5.02.	 	Late Payments by the Corporate Taxpayer	  	12
			
		 	 ARTICLE VI
 NO DISPUTES; CONSISTENCY; COOPERATION
	  	
	 	  
			
	Section 6.01.	 	Limited Partner Group Member Participation in the Corporate Taxpayer’s and Partnerships’ Tax Matters	  	12
	Section 6.02.	 	Consistency	  	12
	Section 6.03.	 	Cooperation	  	12

  

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	 	 	ARTICLE VII	  	 
		 	MISCELLANEOUS	  	
			
	Section 7.01.	 	Notices	  	13
	Section 7.02.	 	Counterparts	  	13
	Section 7.03.	 	Entire Agreement; No Third Party Beneficiaries	  	13
	Section 7.04.	 	Governing Law	  	14
	Section 7.05.	 	Severability	  	14
	Section 7.06.	 	Successors; Assignment; Amendments; Waivers	  	14
	Section 7.07.	 	Titles and Subtitles	  	15
	Section 7.08.	 	Resolution of Disputes	  	15
	Section 7.09.	 	Reconciliation	  	16
	Section 7.10.	 	Withholding	  	17
	Section 7.11.	 	Affiliated Corporations of Other Blackstone Holdings General Partners; Admission of the Corporate Taxpayer into a Consolidated Group; Transfers of Corporate Assets	  	17
	Section 7.12.	 	Confidentiality	  	18
	Section 7.13.	 	Partnership Agreement	  	19
	Section 7.14.	 	Partnerships	  	19
	Section 7.15.	 	Headings	  	19

  

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 This TAX RECEIVABLE AGREEMENT (as amended from time to time, this “Agreement”), dated as
of June 18, 2007, is hereby entered into by and among Blackstone Holdings I/II GP Inc., a Delaware corporation (the “Corporate Taxpayer”), Blackstone Holdings I L.P., a Delaware limited partnership (“Blackstone Holdings
I”), Blackstone Holdings II L.P., a Delaware limited partnership (“Blackstone Holdings II”) (together with all other Persons (as defined herein) in which the Corporate Taxpayer acquires a partnership interest, member
interest or similar interest after the date hereof and who executes and delivers a joinder contemplated in Section 7.11, the “Partnerships”), and each of the undersigned parties hereto identified as “Limited
Partners.” 
 RECITALS 
 WHEREAS, the Limited Partners hold interests as partners or members of entities (the “Prior Entities”) and are selling such interests to the Corporate Taxpayer (the “Initial Sale”) as described in the Form
S-1 Registration Statement of The Blackstone Group L.P., a Delaware limited partnership (the “Parent”); 
 WHEREAS, the
Limited Partners hold limited partner interests (“Partnership Units”) in each of the Partnerships, each of which is treated as a partnership for U.S. Federal income tax purposes; 
 WHEREAS, the Corporate Taxpayer is the general partner of each of the Partnerships; 
 WHEREAS, the Partnership Units, together with limited partner interests in the other Blackstone Holdings Partnerships (as defined below), are
exchangeable with the Corporate Taxpayer and the Parent for Common Units (the “Common Units”) in the Parent, subject to the provisions of the Exchange Agreement (as defined below); 
 WHEREAS, the Prior Entities, the Partnerships, and each of their direct and indirect subsidiaries, will have in effect an election under Section 754
of the Internal Revenue Code of 1986, as amended (the “Code”), for the Taxable Year in which the Initial Sale occurs and for each Taxable Year in which an exchange of Partnership Units for Common Units occurs, which elections are
intended generally to result in an adjustment to the tax basis of the assets owned by the Partnerships (solely with respect to the Corporate Taxpayer) at the time of an exchange of Partnership Units for Common Units or any other acquisition of
Partnership Units for cash or other consideration, including the Initial Sale (collectively, an “Exchange”) (such time, the “Exchange Date”) (such assets and any asset whose tax basis is determined, in whole or in
part, by reference to the adjusted basis of any such asset, the “Original Assets”) by reason of such Exchange and the receipt of payments under this Agreement; 
 WHEREAS, the income, gain, loss, expense and other Tax items of (i) the Partnerships solely with respect to the Corporate Taxpayer may be affected
by the Basis Adjustment (defined below) and (ii) the Corporate Taxpayer may be affected by the Imputed Interest (as defined below); 

 WHEREAS, the parties to this Agreement desire to make certain arrangements with respect to the effect of
the Basis Adjustment and Imputed Interest on the actual liability for Taxes of the Corporate Taxpayer; 
 NOW, THEREFORE, in consideration of
the foregoing and the respective covenants and agreements set forth herein, and intending to be legally bound hereby, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.01. Definitions. As used in this Agreement, the terms set forth in this Article I shall have the following meanings (such
meanings to be equally applicable to both the singular and plural forms of the terms defined). 
 “Affiliate” means, with
respect to any Person, any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such first Person. 
 “Agreed Rate” means LIBOR plus 100 basis points. 
 “Agreement” is defined in the Recitals of this Agreement. 
 “Amended
Schedule” is defined in Section 2.04(b) of this Agreement. 
 “Basis Adjustment” means the adjustment to the
tax basis of an Original Asset under Section 732 of the Code (in situations where, as a result of one or more Exchanges, a Partnership becomes an entity that is disregarded as separate from its owner for tax purposes), Section 1012 of the
Code, or Sections 743(b) and 754 of the Code (in situations where, following an Exchange, a Partnership remains in existence as an entity for tax purposes) and, in each case, comparable sections of state, local and foreign tax laws (as calculated
under Section 2.01 of this Agreement) as a result of an Exchange and the payments made pursuant to this Agreement. Notwithstanding any other provision of this Agreement, the amount of any Basis Adjustment resulting from an Exchange of one or
more Partnership Units shall be determined without regard to any Pre-Exchange Transfer of such Partnership Units and as if any such Pre-Exchange Transfer had not occurred. 
 “Blackstone Holdings General Partners” means, collectively, the Corporate Taxpayer, Blackstone Holdings III GP L.P., a Delaware limited
partnership (“Blackstone Holdings III”), Blackstone Holdings IV GP L.P., a Delaware limited partnership (“Blackstone Holdings IV”), and Blackstone Holdings V GP L.P., a Québec société en
commandite (“Blackstone Holdings V”). 
 “Blackstone Holdings Partnerships” means, collectively, Blackstone
Holdings I, Blackstone Holdings II, Blackstone Holdings III L.P., a Delaware limited partnership (“Blackstone Holdings III”), Blackstone Holdings IV L.P., a Québec société en commandite (“Blackstone
Holdings IV”), and Blackstone Holdings V L.P., a Québec société en commandite (“Blackstone Holdings V”). 
  

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 “Business Day” means Monday through Friday of each week, except that a legal holiday
recognized as such by the government of the United States of America or the State of New York shall not be regarded as a Business Day. 
 “Change of Control” means the occurrence of any Person, other than a Person approved by the current General Partner, becoming the general partner of the Parent. 
 “Common Units” is defined in the Recitals of this Agreement. 
 “Code” is defined in the Recitals of this Agreement. 
 “Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by
contract or otherwise. 
 “Corporate Taxpayer” is defined in the Recitals of this Agreement. 
 “Corporate Taxpayer Return” means the federal Tax Return and/or state and/or local and/or foreign Tax Return, as applicable, of the
Corporate Taxpayer filed with respect to Taxes of any Taxable Year. 
 “Default Rate” means LIBOR plus 500 basis points.

 “Determination” shall have the meaning ascribed to such term in Section 1313(a) of the Code or similar provision of
state, local and foreign tax law, as applicable, or any other event (including the execution of a Form 870-AD) that finally and conclusively establishes the amount of any liability for Tax. 
 “Early Termination Date” means the date of an Early Termination Notice for purposes of determining the Early Termination Payment.

 “Early Termination Notice” is defined in Section 4.02 of this Agreement. 
 “Early Termination Schedule” is defined in Section 4.02 of this Agreement. 
 “Early Termination Payment” is defined in Section 4.03(b) of this Agreement. 
 “Early Termination Rate” means the lesser of (i) 6.5% and (ii) LIBOR plus 100 basis points. 
 “Exchange” is defined in the Recitals of this Agreement. 
 “Exchange Agreement” means the Exchange Agreement, dated as of the date hereof, among the Parent, the Corporate Taxpayer and the limited partners of Blackstone Holdings from time to time. 

 

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 “Exchange Basis Schedule” is defined in Section 2.02 of this Agreement. 

“Exchange Date” is defined in the Recitals of this Agreement. 
 “Exchange Payment” is defined in Section 5.01. 
 “Excluded Assets” is defined in Section 7.11(c) of this Agreement. 
 “Expert” is defined in Section 7.09 of this Agreement. 
 “General Partner” means Blackstone
Management L.L.C., a Delaware limited liability company and the general partner of the Parent. 
 “Initial Sale” is defined
in the Recitals of this Agreement. 
 “Imputed Interest” shall mean any interest imputed under Section 1272, 1274 or
483 or other provision of the Code and any similar provision of state, local and foreign tax law with respect to the Corporate Taxpayer’s payment obligations under this Agreement. 
 “LIBOR” means for each month (or portion thereof) during any period, an interest rate per annum equal to the rate per annum reported, on
the date two days prior to the first day of such month, on the Telerate Page 3750 (or if such screen shall cease to be publicly available, as reported on Reuters Screen page “LIBO” or by any other publicly available source of such market
rate) for London interbank offered rates for U.S. dollar deposits for such month (or portion thereof). 
 “Limited Partner”
means the parties hereto other than the Corporate Taxpayer and each other individual who from time to time executes a joinder agreement. 
 “Limited Partner Group Member” has the meaning assigned to such term in the Amended and Restated Limited Liability Company Agreement of the General Partner, as it may be amended, supplemented or restated from time to time.

 “Market Value” shall mean the closing price of the Common Units on the applicable Exchange Date on the national
securities exchange or interdealer quotation system on which such Common Units are then traded or listed, as reported by the Wall Street Journal; provided that if the closing price is not reported by the Wall Street Journal for the applicable
Exchange Date, then the Market Value shall mean the closing price of the Common Units on the Business Day immediately preceding such Exchange Date on the national securities exchange or interdealer quotation system on which such Common Units are
then traded or listed, as reported by the Wall Street Journal; provided further, that if the Common Units are not then listed on a National Securities Exchange or Interdealer Quotation System, “Market Value” shall mean the cash
consideration paid for Common Units, or the fair market value of the other property delivered for Common Units, as determined by the board of directors of the General Partner in good faith. 
 “Material Objection Notice” has the meaning set forth in Section 4.02. 
  

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 “Non-Stepped Up Tax Basis” means, with respect to any asset at any time, the tax basis
that such asset would have had at such time if no Basis Adjustment had been made. 
 “Non-Stepped Up Tax Liability” means,
with respect to any Taxable Year, the liability for Taxes of i) the Corporate Taxpayer or ii) any Partnership in which the Corporate Taxpayer owns an interest but only with respect to Taxes imposed on such Partnership and allocable to the Corporate
Taxpayer, in each case using the same methods, elections, conventions and similar practices used on the relevant Corporate Taxpayer Return, but using the Non-Stepped Up Tax Basis instead of the tax basis of the Original Assets and excluding any
deduction attributable to the Imputed Interest. 
 “Objection Notice” has the meaning set forth in Section 2.04(a).

 “Original Assets” is defined in the Recitals of this Agreement. 
 “Parent” is defined in the Recitals of this Agreement. 
 “Partnerships” is defined in the Recitals of this Agreement. 
 “Partnership
Agreement” means, with respect to a Partnership, the Amended and Restated Limited Partnership Agreement of such Partnership. 
 “Partnership Units” is defined in the Recitals of this Agreement. 
 “Payment Date” means any date
on which a payment is required to be made pursuant to this Agreement. 
 “Person” means any individual, corporation, firm,
partnership, joint venture, limited liability company, estate, trust, business association, organization, governmental entity or other entity. 
 “Pre-Exchange Transfer” means any transfer (including upon the death of a Limited Partner) of one or more Partnership Units (i) that occurs prior to an Exchange of such Partnership Units, and (ii) to which
Section 743(b) of the Code applies. 
 “Prior Entities” is defined in the Recitals of this Agreement. 
 “Realized Tax Benefit” means, for a Taxable Year, the excess, if any, of the Non-Stepped Up Tax Liability over the actual liability for
Taxes of i) the Corporate Taxpayer or ii) any Partnership in which the Corporate Taxpayer owns an interest but only with respect to Taxes imposed on such Partnership and allocable to Corporate Taxpayer for such Taxable Year, in each case using the
“with or without” methodology. If all or a portion of the actual tax liability for Taxes for the Taxable Year arises as a result of an audit by a Taxing Authority of any Taxable Year, such liability shall not be included in determining the
Realized Tax Benefit unless and until there has been a Determination. 
 “Realized Tax Detriment” means, for a Taxable Year,
the excess, if any, of the actual liability for Taxes of i) the Corporate Taxpayer or ii) any Partnership in which the 

  

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Corporate Taxpayer owns an interest but only with respect to Taxes imposed on such Partnership and allocable to the Corporate Taxpayer over the Non-Stepped
Up Tax Liability for such Taxable Year, in each case using the “with or without” methodology. If all or a portion of the actual tax liability for Taxes for the Taxable Year arises as a result of an audit by a Taxing Authority of any
Taxable Year, such liability shall not be included in determining the Realized Tax Detriment unless and until there has been a Determination. 
 “Reconciliation Dispute” has the meaning set forth in Section 7.09. 
 “Reconciliation
Procedures” shall mean those procedures set forth in Section 7.09 of this Agreement. 
 “Schedule” means any
Exchange Basis Schedule, Tax Benefit Schedule and the Early Termination Schedule. 
 “Subsidiaries” means, with respect to
any Person, as of any date of determination, any other Person as to which such Person, owns, directly or indirectly, or otherwise controls more than 50% of the voting power or other similar interests or the sole general partner interest or managing
member or similar interest of such Person. 
 “Tax Benefit Payment” is defined in Section 3.01(b) of this Agreement.

 “Tax Benefit Schedule” is defined in Section 2.03 of this Agreement. 
 “Tax Return” means any return, declaration, report or similar statement required to be filed with respect to Taxes (including any
attached schedules), including, without limitation, any information return, claim for refund, amended return and declaration of estimated Tax. 
 “Taxable Year” means a taxable year as defined in Section 441(b) of the Code or comparable section of state, local or foreign tax law, as applicable, (and, therefore, for the avoidance of doubt, may include a period of
less than 12 months for which a Tax Return is made) ending on or after the Exchange Date in which there is a Basis Adjustment due to an Exchange. 
 “Taxes” means any and all U.S. federal, state, local and foreign taxes, assessments or similar charges measured with respect to net income or profits and any interest related to such Tax. 
 “Taxing Authority” shall mean any domestic, foreign, federal, national, state, county or municipal or other local government, any
subdivision, agency, commission or authority thereof, or any quasi-governmental body exercising any taxing authority or any other authority exercising Tax regulatory authority. 
 “Treasury Regulations” means the final, temporary and proposed regulations under the Code promulgated from time to time (including
corresponding provisions and succeeding provisions) as in effect for the relevant taxable period. 
  

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 “Valuation Assumptions” shall mean, as of an Early Termination Date, the assumptions
that (1) in each Taxable Year ending on or after such Early Termination Date, the Corporate Taxpayer will have taxable income sufficient to fully utilize the deductions arising from the basis Adjustment and the Imputed Interest during such
Taxable Year, (2) the federal income tax rates and state, local and foreign income tax rates that will be in effect for each such Taxable Year will be those specified for each such Taxable Year by the Code and other law as in effect on the
Early Termination Date, (3) any loss carryovers or carryback generated by the Basis Adjustment or the Imputed Interest and available as of the date of the Early Termination Schedule will be utilized by the Corporate Taxpayer on a pro rata basis
from the date of the Early Termination Schedule through the scheduled expiration date of such loss carryovers or carrybacks, (4) any non-amortizable assets are deemed to be disposed of (A) with respect to private equity fund related
assets, pro-rata over the number of years remaining under the original fund agreement until expected liquidation (without extensions) of the applicable fund (or, if such expected liquidation date has passed, on the Early Termination Date) and
(B) with respect to all other assets, on the fifteenth anniversary of the earlier of the Basis Adjustment and the Early Termination Date and (5) if an Early Termination is effected prior to an Exchange of Partnership Units, clause
(i) of Section 2.01 shall be read to include the Market Value of the Common Units and cash that would be transferred if the Exchange occurred on the Early Termination Date. 
 ARTICLE II 
 DETERMINATION OF REALIZED TAX BENEFIT 
 Section 2.01. Basis Adjustment. The Corporate Taxpayer and the Partnerships, on the one hand, and the applicable Limited Partner, on the
other hand, acknowledge that, as a result of an Exchange, the Corporate Taxpayer’s basis in the applicable Original Assets shall be increased by the excess, if any, of (i) the sum of (x) the Market Value of the Common Units, cash or
other consideration transferred to the applicable Limited Partner pursuant to the Exchange as payment for the exchanged Partnership Units, plus (y) the amount of payments made pursuant to this Agreement with respect to such Exchange plus
(z) the amount of debt allocated to the Partnership Units acquired pursuant to such Exchange over (ii) the Corporate Taxpayer’s share of the basis of the Original Assets immediately after the Exchange attributable to the Partnership
Units exchanged, determined as if (x) each Partnership remains in existence as an entity for tax purposes, and (y) no Partnership made the election provided by Section 754 of the Code. For the avoidance of doubt, payments made under
this Agreement shall not be treated as resulting in a Basis Adjustment to the extent such payments are treated as Imputed Interest. 
 Section 2.02. Exchange Basis Schedule. Within 90 calendar days after the filing of the U.S. federal income tax return of the Corporate Taxpayer for each Taxable Year in which any Exchange has been effected, the Corporate
Taxpayer shall deliver to the applicable Limited Partner a schedule (the “Exchange Basis Schedule”) that shows for purposes of Taxes, (i) the actual unadjusted tax basis of the Original Assets as of each applicable Exchange
Date, (ii) the Basis Adjustment with respect to the Original Assets as a result of the Exchanges effected in such Taxable Year, calculated in the aggregate, (iii) the period or periods, if any, over which the Original Assets are
amortizable and/or depreciable and (iv) the period or periods, if any, over which each Basis Adjustment is amortizable and/or depreciable (which, for non-amortizable assets shall be based on the Valuation Assumptions). 
  

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 Section 2.03. Tax Benefit Schedule. Within 90 calendar days after the filing of the U.S.
federal income tax return of the Corporate Taxpayer for any Taxable Year in which there is a Realized Tax Benefit or Realized Tax Detriment, the Corporate Taxpayer shall provide to the applicable Limited Partner a schedule showing the calculation of
the Realized Tax Benefit or Realized Tax Detriment for such Taxable Year (a “Tax Benefit Schedule”). The Schedule will become final as provided in Section 2.04(a) and may be amended as provided in Section 2.04(b) (subject
to the procedures set forth in Section 2.04(b)). 
 Section 2.04. Procedures, Amendments. 
 (a) Procedure. Every time the Corporate Taxpayer delivers to the applicable Limited Partner an applicable Schedule under this Agreement, including
any Amended Schedule delivered pursuant to Section 2.04(b), but excluding any Early Termination Schedule or amended Early Termination Schedule, the Corporate Taxpayer shall also (x) deliver to the applicable Limited Partner schedules and
work papers providing reasonable detail regarding the preparation of the Schedule and (y) allow the applicable Limited Partner reasonable access at no cost to the appropriate representatives at the Corporate Taxpayer in connection with a review
of such Schedule. The applicable Schedule shall become final and binding on all parties unless the applicable Limited Partner Group Member, within 30 calendar days after receiving an Exchange Basis Schedule or amendment thereto or 30 calendar days
after receiving a Tax Benefit Schedule or amendment thereto, provides the Corporate Taxpayer with notice of a material objection to such Schedule (“Objection Notice”) made in good faith; provided, for the sake of clarity, only
Limited Partner Group Members shall have the right to object to any Schedule or Amended Schedule pursuant to this Section 2.04. If the parties, for any reason, are unable to successfully resolve the issues raised in such notice within 30
calendar days of receipt by the Corporate Taxpayer of an Objection Notice, if with respect to an Exchange Basis Schedule, or 30 calendar days of receipt by the Corporate Taxpayer of an Objection Notice, if with respect to a Tax Benefit Schedule,
after such Schedule was delivered to the applicable Limited Partner, the Corporate Taxpayer and the applicable Limited Partner shall employ the reconciliation procedures as described in Section 7.09 of this Agreement (the
“Reconciliation Procedures”). 
 (b) Amended Schedule. The applicable Schedule for any Taxable Year may be amended
from time to time by the Corporate Taxpayer (i) in connection with a Determination affecting such Schedule, (ii) to correct material inaccuracies in the Schedule identified as a result of the receipt of additional factual information
relating to a Taxable Year after the date the Schedule was provided to the applicable Limited Partner, (iii) to comply with the Expert’s determination under the Reconciliation Procedures, (iv) to reflect a material change in the
Realized Tax Benefit or Realized Tax Detriment for such Taxable Year attributable to a carryback or carryforward of a loss or other tax item to such Taxable Year, (v) to reflect a material change in the Realized Tax Benefit or Realized Tax
Detriment for such Taxable Year attributable to an amended Tax Return filed for such Taxable Year, or (vi) to adjust the Exchange Basis Schedule to take into account payments made pursuant to this Agreement (such Schedule, an “Amended
Schedule”). 
  

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 ARTICLE III 
 TAX BENEFIT PAYMENTS 
 Section 3.01. Payments. 
 (a) Payments. Within five (5) calendar days of a Tax Benefit Schedule delivered to an applicable Limited Partner becoming final in accordance
with Section 2.04(a), the Corporate Taxpayer shall pay to the applicable Limited Partner for such Taxable Year the Tax Benefit Payment determined pursuant to Section 3.01(b). Each such Tax Benefit Payment shall be made by wire transfer of
immediately available funds to a bank account of the applicable Limited Partner previously designated by such Limited Partner to the Corporate Taxpayer or as otherwise agreed by the Corporate Taxpayer and the applicable Limited Partner. For the
avoidance of doubt, no Tax Benefit Payment shall be made in respect of estimated tax payments, including, without limitation, federal income tax payments. 
 (b) A “Tax Benefit Payment” means an amount, not less than zero, equal to 85% of the sum of the Net Tax Benefit and the Interest Amount. The “Net Tax Benefit” shall equal: (1) the
Corporate Taxpayer’s Realized Tax Benefit, if any, for a Taxable Year plus (2) the amount of the excess Realized Tax Benefit reflected on an Amended Tax Benefit Schedule for a previous Taxable Year over the Realized Tax Benefit (or
Realized Tax Detriment (expressed as a negative number)) reflected on the Tax Benefit Schedule for such previous Taxable Year, minus (3) an amount equal to the Corporate Taxpayer’s Realized Tax Detriment (if any) for the current or any
previous Taxable Year, minus (4) the amount of the excess Realized Tax Benefit reflected on a Tax Benefit Schedule for a previous Taxable Year over the Realized Tax Benefit (or Realized Tax Detriment (expressed as a negative number)) reflected
on the Amended Tax Benefit Schedule for such previous Taxable Year; provided, however, that to the extent of the amounts described in 3.01(b)(2), (3) and (4) were taken into account in determining any Tax Benefit Payment in a
preceding Taxable Year, such amounts shall not be taken into account in determining a Tax Benefit Payment attributable to any other Taxable Year; provided, further, for the avoidance of doubt, no applicable Limited Partner shall be
required to return any portion of any previously made Tax Benefit Payment. The “Interest Amount” shall equal the interest on the Net Tax Benefit calculated at the Agreed Rate from the due date (without extensions) for filing the
Corporate Taxpayer Return with respect to Taxes for such Taxable Year until the Payment Date. Notwithstanding the foregoing, for each Taxable Year ending on or after the date of a Change of Control, all Tax Benefit Payments, whether paid with
respect to Partnership Units that were exchanged (i) prior to the date of such Change of Control or (ii) on or after the date of such Change of Control, shall be calculated by utilizing Valuation Assumptions (1), (3), and (4), substituting
in each case the terms “the closing date of a Change of Control” for an “Early Termination Date”. 
 Section 3.02. No Duplicative Payments. It is intended that the above provisions of this Agreement will not result in duplicative payment of any amount (including interest) required under this Agreement. It is also intended
that the provisions of this Agreement provide that 85% of the Corporate Taxpayer’s Realized Tax Benefit and Interest Amount is paid to the Limited Partners pursuant to this Agreement. The provisions of this Agreement shall be construed in the
appropriate manner as such intentions are realized. 
  

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 Section 3.03. Pro Rata Payments. For the avoidance of doubt, to the extent the Corporate
Taxpayer’s deduction with respect to the Basis Adjustment is limited in a particular Taxable Year or the Corporate Taxpayer lacks sufficient funds to satisfy its obligations to make all Tax Benefit Payments due in a particular taxable year, the
limitation on the deduction, or the Tax Benefit Payments that may be made, as the case may be, shall be taken into account or made for each applicable Limited Partner on a pro rata basis relative to the total amount of deductions with respect to the
aggregate Basis Adjustments for all of the applicable Limited Partners. 
 ARTICLE IV 
 TERMINATION 
 Section 4.01. Early Termination and Breach of Agreement. 
 (a) The Corporate Taxpayer may terminate this Agreement
with respect to all of the Partnership Units held (or previously held and exchanged) by all Limited Partners at any time by paying to all of the applicable Limited Partners the Early Termination Payment; provided, however, that this Agreement shall
only terminate upon the receipt of the Early Termination Payment by all Limited Partners, and provided, further, that the Corporate Taxpayer may withdraw any notice to execute its termination rights under this Section 4.01(a) prior to the time
at which any Early Termination Payment has been paid. Upon payment of the Early Termination Payments by the Corporate Taxpayer, neither the applicable Limited Partners nor the Corporate Taxpayer shall have any further payment obligations under this
Agreement in respect of such Limited Partners, other than for any (a) Tax Benefit Payment agreed to by the Corporate Taxpayer and the applicable Limited Partner as due and payable but unpaid as of the Early Termination Notice and (b) Tax
Benefit Payment due for the Taxable Year ending with or including the date of the Early Termination Notice (except to the extent that the amount described in clause (b) is included in the Early Termination Payment). If an Exchange occurs after
the Corporate Taxpayer exercises its termination rights under this Section 4.01(a), the Corporate Taxpayer shall have no obligations under this Agreement with respect to such Exchange. 
 (b) In the event that the Corporate Taxpayer breaches any of its material obligations under this Agreement, whether as a result of failure to make any
payment when due, failure to honor any other material obligation required hereunder or by operation of law as a result of the rejection of this Agreement in a case commenced under the Bankruptcy Code or otherwise, then all obligations hereunder
shall be accelerated and such obligations shall be calculated as if an Early Termination Notice had been delivered on the date of such breach and shall include, but not be limited to, (1) the Early Termination Payment calculated as if an Early
Termination Notice had been delivered on the date of a breach, (2) any Tax Benefit Payment agreed to by the Corporate Taxpayer and any Limited Partners as due and payable but unpaid as of the date of a breach, and (3) any Tax Benefit
Payment due for the Taxable Year ending with or including the date of a breach. Notwithstanding the foregoing, in the event that the Corporate Taxpayer breaches this Agreement, the Limited Partners shall be entitled to elect to receive the amounts
set forth in (1), (2) and (3), above or to seek specific performance of the terms hereof. The parties agree that the failure to make any payment due pursuant to this Agreement within three months of the date such payment is due shall be deemed
to be a breach of a material 

  

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obligation under this Agreement for all purposes of this Agreement, and that it will not be considered to be a breach of a material obligation under this
Agreement to make a payment due pursuant to this Agreement within three months of the date such payment is due. 
 (c) The undersigned
parties agree that the aggregate value of the Tax Benefit Payments cannot be ascertained with any reasonable certainty for U.S. federal income tax purposes. 
 Section 4.02. Early Termination Notice. If the Corporate Taxpayer chooses to exercise its right of early termination under Section 4.01 above, the Corporate Taxpayer shall deliver to the
applicable Limited Partner notice of such intention to exercise such right (“Early Termination Notice”) and a schedule (the “Early Termination Schedule”) specifying the Corporate Taxpayer’s intention to
exercise such right and showing in reasonable detail the calculation of the Early Termination Payment. The applicable Early Termination Schedule shall become final and binding on all parties unless the applicable Limited Partner Group Member, within
30 calendar days after receiving the Early Termination Schedule thereto provides the Corporate Taxpayer with notice of a material objection to such Schedule made in good faith (“Material Objection Notice”); provided, for the sake of
clarity, only Limited Partner Group Members shall have the right to object to any Schedule or Amended Schedule pursuant to this Section 4.02. If the parties, for any reason, are unable to successfully resolve the issues raised in such notice
within 30 calendar days after receipt by the Corporate Taxpayer of the Material Objection Notice, the Corporate Taxpayer and the applicable Limited Partner Group Member shall employ the Reconciliation Procedures as described in Section 7.09 of
this Agreement. 
 Section 4.03. Payment upon Early Termination. (a) Within three calendar days after agreement between
the applicable Limited Partner and the Corporate Taxpayer of the Early Termination Schedule, the Corporate Taxpayer shall pay to the applicable Limited Partner an amount equal to the Early Termination Payment. Such payment shall be made by wire
transfer of immediately available funds to a bank account designated by the applicable Limited Partner or as otherwise agreed by the Corporate Taxpayer and the applicable Limited Partner. 
 (b) The “Early Termination Payment” as of the date of the delivery of an Early Termination Schedule shall equal with respect to the
applicable Limited Partner the present value, discounted at the Early Termination Rate as of such date, of all Tax Benefit Payments that would be required to be paid by the Corporate Taxpayer to the applicable Limited Partner beginning from the
Early Termination Date assuming the Valuation Assumptions are applied. 
 ARTICLE V 
 SUBORDINATION AND LATE PAYMENTS 
 Section 5.01. Subordination. Notwithstanding any other provision of this Agreement to the contrary, any Tax Benefit Payment or Early Termination Payment required to be made by the Corporation to the applicable Partner under
this Agreement (an “Exchange Payment”) shall rank subordinate and junior in right of payment to any principal, interest or other amounts due and payable in respect of any obligations in respect of indebtedness for borrowed money of the
Corporation and its Subsidiaries (“Senior Obligations”) and shall rank pari passu with all current or future unsecured obligations of the Corporation that are not Senior Obligations. 
  

 11 

 Section 5.02. Late Payments by the Corporate Taxpayer. The amount of all or any portion
of any Tax Benefit Payment not made to the applicable Limited Partner when due under the terms of this Agreement shall be payable together with any interest thereon, computed at the Default Rate and commencing from the date on which such Exchange
Payment was due and payable. 
 ARTICLE VI 
 NO DISPUTES; CONSISTENCY; COOPERATION 
 Section 6.01. Limited Partner Group Member
Participation in the Corporate Taxpayer’s and Partnerships’ Tax Matters. Except as otherwise provided herein, the Corporate Taxpayer shall have full responsibility for, and sole discretion over, all Tax matters concerning the Corporate
Taxpayer and the Partnerships, including without limitation the preparation, filing or amending of any Tax Return and defending, contesting or settling any issue pertaining to Taxes. Notwithstanding the foregoing, the Corporate Taxpayer shall notify
the applicable Limited Partner Group Member of, and keep the applicable Limited Partner Group Member reasonably informed with respect to the portion of any audit of the Corporate Taxpayer and the Partnerships by a Taxing Authority the outcome of
which is reasonably expected to affect the applicable Limited Partner Group Member’s rights and obligations under this Agreement, and shall provide to the applicable Limited Partner Group Member reasonable opportunity to provide information and
other input to the Corporate Taxpayer, the Partnerships and their respective advisors concerning the conduct of any such portion of such audit; provided, however, that the Corporate Taxpayer and the Partnerships shall not be required
to take any action that is inconsistent with any provision of any of the Partnership Agreements. 
 Section 6.02. Consistency. The Corporate Taxpayer and the applicable Limited Partner agree to report and cause to be reported for all purposes, including federal, state, local and foreign Tax purposes and financial
reporting purposes, all Tax-related items (including without limitation the Basis Adjustment and each Tax Benefit Payment) in a manner consistent with that specified by the Corporate Taxpayer in any Schedule required to be provided by or on behalf
of the Corporate Taxpayer under this Agreement. 
 Section 6.03. Cooperation. The applicable Limited Partner shall
(a) furnish to the Corporate Taxpayer in a timely manner such information, documents and other materials as the Corporate Taxpayer may reasonably request for purposes of making any determination or computation necessary or appropriate under
this Agreement, preparing any Tax Return or contesting or defending any audit, examination or controversy with any Taxing Authority, (b) make itself available to the Corporate Taxpayer and its representatives to provide explanations of
documents and materials and such other information as the Corporate Taxpayer or its representatives may reasonably request in connection with any of the matters described in clause (a) above, and (c) reasonably cooperate in connection with
any such matter, and the Corporate Taxpayer shall reimburse the applicable Limited Partner for any reasonable third-party costs and expenses incurred pursuant to this Section. 
  

 12 

 ARTICLE VII 
 MISCELLANEOUS 
 Section 7.01. Notices. All notices, requests, claims, demands and
other communications hereunder shall be in writing and shall be deemed duly given and received (a) on the date of delivery if delivered personally, or by facsimile upon confirmation of transmission by the sender’s fax machine if sent on a
Business Day (or otherwise on the next Business Day) or (b) on the first Business Day following the date of dispatch if delivered by a recognized next-day courier service. All notices hereunder shall be delivered as set forth below, or pursuant
to such other instructions as may be designated in writing by the party to receive such notice: 
 If to the Corporate Taxpayer, to:

 c/o The Blackstone Group L.P. 
 345 Park Avenue 
 New York, NY 10154 
 (T) (212) 583-5000 
 Attention: Chief Legal Officer 
 with a copy to: 
 Simpson Thacher &
Bartlett LLP 
 425 Lexington Avenue 
 New York, New York 10017 
 (T) (212) 455-2000 
 (F) (212) 735-2502 
 Attention:
Joshua Ford Bonnie, Esq. 
 If to the applicable Limited Partner, to: 
 The address and facsimile number set forth in the records of the Partnerships. 
 Any party may change its address or fax number by giving the other party written notice of its new address or fax number in the manner set forth above.

 Section 7.02. Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered
one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart. Delivery of an
executed signature page to this Agreement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Agreement. 
 Section 7.03. Entire Agreement; No Third Party Beneficiaries. This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the
parties with respect to the subject matter hereof. This Agreement shall be binding upon and inure solely to the benefit of each party hereto and their respective successors and permitted assigns, and nothing in this Agreement, express or implied, is
intended to or shall confer upon any other Person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. 
  

 13 

 Section 7.04. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the law of the State of New York. 
 Section 7.05. Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such 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 an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent
possible. 
 Section 7.06. Successors; Assignment; Amendments; Waivers. 
 (a) No Limited Partner may assign this Agreement to any person without the prior written consent of the Corporate Taxpayer; provided, however,
(i) that, to the extent Partnership Units are effectively transferred in accordance with the terms of the Partnership Agreements and any other agreements the Limited Partners may have entered into with the Parent, the Corporate Taxpayer and/or
any of the other Blackstone Holdings General Partners or Blackstone Holdings Partnerships, the transferring Limited Partner shall assign to the transferee of such Partnership Units the transferring Limited Partner’s rights under this Agreement
with respect to such transferred Partnership Units, as long as such transferee has executed and delivered, or, in connection with such transfer, executes and delivers, a joinder to this Agreement, in form and substance reasonably satisfactory to the
Corporate Taxpayer, agreeing to become a “Limited Partner” for all purposes of this Agreement, except as otherwise provided in such joinder, and (ii) that, once an Exchange has occurred, any and all payments that may become payable to
a Limited Partner pursuant to this Agreement with respect to such Exchange may be assigned to any Person or Persons, as long as any such Person has executed and delivered, or, in connection with such assignment, executes and delivers, a joinder to
this Agreement, in form and substance reasonably satisfactory to the Corporate Taxpayer, agreeing to be bound by Section 7.12 and acknowledging specifically the last sentence of the next paragraph. For the avoidance of doubt: (A) to the
extent a Limited Partner Group Member or other Person transfers Partnership Units to a Limited Partner Group Member pursuant to the relevant Partnership Agreements, the Limited Partner Group Member receiving such Partnership Units shall have all
rights under this Agreement with respect to such transferred Partnership Units as such Limited Partner Group Members has, under this Agreement, with respect to the other Partnership Units held by him; and (B) the requirement to execute and
deliver a joinder pursuant to this Section 7.06(a) shall not be construed as requiring such execution and delivery prior to an assignment becoming effective. 
 (b) Notwithstanding the provisions of Section 7.06(a), no transferee described in clause (i) of Section 7.06(a) shall have the right to enforce the provisions of Section 2.04, 4.02, 6.01 or 6.02 of
this Agreement, and no assignee described in clause (ii) of Section 7.06(a) shall have any rights under this Agreement except for the right to enforce its right to receive payments under this Agreement. 
  

 14 

 (c) No provision of this Agreement may be amended unless such amendment is approved in writing by the
Corporate Taxpayer, on behalf of themselves and the respective Partnerships they Control, and by Limited Partner Group Members who would be entitled to receive at least two-thirds of the Early Termination Payments payable to all Limited Partner
Group Members hereunder if the Corporate Taxpayer had exercised its right of early termination on the date of the most recent Exchange prior to such amendment (excluding, for purposes of this sentence, all payments made to any Limited Partner Group
Member pursuant to this Agreement since the date of such most recent Exchange); provided, that no such amendment shall be effective if such amendment will have a disproportionate effect on the payments certain Limited Partners will or may receive
under this Agreement unless all such Limited Partners disproportionately effected consent in writing to such amendment. No provision of this Agreement may be waived unless such waiver is in writing and signed by the party against whom the waiver is
to be effective. 
 (d) 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. The Corporate Taxpayer 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 the Corporate Taxpayer, by written agreement, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Corporate
Taxpayer would be required to perform if no such succession had taken place. Notwithstanding anything to the contrary herein, in the event an Limited Partner Group Member transfers his Partnership Units to a Permitted Transferee (as defined in each
Partnership Agreement), excluding any other Limited Partner Group Member, such Limited Partner Group Member shall have the right, on behalf of such transferee, to enforce the provisions of Sections 2.04, 4.02 or 6.01 with respect to such transferred
Partnership Units. 
 Section 7.07. Titles and Subtitles. The titles of the sections and subsections of this Agreement are
for convenience of reference only and are not to be considered in construing this Agreement. 
 Section 7.08. Resolution of
Disputes. 
 (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. The arbitrator shall be a lawyer and shall conduct the proceedings in the English language. 
  

 15 

 Performance under this Agreement shall continue if reasonably possible during any arbitration
proceedings. 
 (b) Notwithstanding the provisions of paragraph (a), the Corporate Taxpayer 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 (b), each
Limited Partner (i) expressly consents to the application of paragraph (c) of this Section 7.08 to any such action or proceeding, (ii) agrees that proof shall not be required that monetary damages for breach of the provisions of
this Agreement would be difficult to calculate and that remedies at law would be inadequate, and (iii) irrevocably appoints the Corporate Taxpayer as such Limited Partner’s agent for service of process in connection with any such action or
proceeding and agrees that service of process upon such agent, who shall promptly advise such Limited Partner of any such service of process, shall be deemed in every respect effective service of process upon the Limited Partner in any such action
or proceeding. 
 (c) (i) EACH LIMITED PARTNER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF COURTS LOCATED IN NEW YORK, NEW YORK FOR THE
PURPOSE OF ANY JUDICIAL PROCEEDING BROUGHT IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 7.08, OR ANY JUDICIAL PROCEEDING ANCILLARY TO AN ARBITRATION OR CONTEMPLATED ARBITRATION ARISING OUT OF OR RELATING TO OR CONCERNING THIS AGREEMENT. Such
ancillary judicial proceedings include any suit, action or proceeding to compel arbitration, to obtain temporary or preliminary judicial relief in aid of arbitration, or to confirm an arbitration award. The parties acknowledge that the fora
designated by this paragraph (c) have a reasonable relation to this Agreement, and to the parties’ relationship with one another. 
 (ii) 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 such ancillary suit, action or proceeding brought
in any court referred to in the preceding paragraph of this Section 7.08 and such parties agree not to plead or claim the same. 
 Section 7.09. Reconciliation. In the event that the Corporate Taxpayer and the applicable Limited Partner Group Member are unable to resolve a disagreement with respect to the matters governed by Sections 2.04, 4.02 and
6.02 within the relevant period designated in this Agreement (“Reconciliation Dispute”), the Reconciliation Dispute shall be submitted for determination to a nationally recognized expert (the “Expert”) in the
particular area of disagreement mutually acceptable to both parties. The Expert shall be a partner in a nationally recognized accounting firm or a law firm, and the Expert shall not, and the firm that employs the Expert shall not, have any material
relationship with the Corporate Taxpayer or the applicable Limited Partner Group Member or other actual or potential conflict of interest. If the parties are unable to agree on an Expert within fifteen (15) days of receipt by the respondent(s)
of written notice of a Reconciliation Dispute, the Expert shall be appointed by the International Chamber of Commerce Centre for Expertise. The Expert shall resolve any matter relating to the Exchange Basis Schedule or an amendment thereto or the
Early Termination Schedule or an amendment thereto within 30 calendar days and shall resolve any matter relating to a Tax Benefit Schedule or an amendment thereto within 15 calendar days or as soon thereafter as is reasonably 

  

 16 

 
practicable, in each case after the matter has been submitted to the Expert for resolution. Notwithstanding the preceding sentence, if the matter is not
resolved before any payment that is the subject of a disagreement is due or any Tax Return reflecting the subject of a disagreement is due, such payment shall be made on the date prescribed by this Agreement and such Tax Return may be filed as
prepared by the Corporate Taxpayer, subject to adjustment or amendment upon resolution. The costs and expenses relating to the engagement of such Expert or amending any Tax Return shall be borne by the Corporate Taxpayer; except as provided in the
next sentence. The Corporate Taxpayer and each applicable Limited Partner Group Member shall bear their own costs and expenses of such proceeding, unless the Limited Partner Group Member has a prevailing position that is more than 10% of the payment
at issue, in which case the Corporate Taxpayer shall reimburse such Limited Partner Group Member for any reasonable out-of-pocket costs and expenses in such proceeding. Any dispute as to whether a dispute is a Reconciliation Dispute within the
meaning of this Section 7.09 shall be decided by the Expert. The Expert shall finally determine any Reconciliation Dispute and the determinations of the Expert pursuant to this Section 7.09 shall be binding on the Corporate Taxpayer and
the applicable Limited Partner Group Member and may be entered and enforced in any court having jurisdiction. 
 Section 7.10. Withholding. The Corporate Taxpayer shall be entitled to deduct and withhold from any payment payable pursuant to this Agreement such amounts as the Corporate Taxpayer is required to deduct and withhold with
respect to the making of such payment under the Code, or any provision of state, local or foreign tax law. To the extent that amounts are so withheld and paid over to the appropriate Taxing Authority by the Corporate Taxpayer, such withheld amounts
shall be treated for all purposes of this Agreement as having been paid to the applicable Limited Partner. 
 Section 7.11. Affiliated Corporations of Other Blackstone Holdings General Partners; Admission of the Corporate Taxpayer into a Consolidated Group; Transfers of Corporate Assets. 
 (a) The other Blackstone Holdings General Partners shall provide that all provisions of this Agreement shall correspondingly apply, including the payment
of Tax Benefit Payments by any corporation owned directly or indirectly in whole or in part, now or in the future, by other Blackstone Holdings General Partners, with respect to any Realized Tax Benefit with respect to limited partner interests in
other Blackstone Holdings Partnerships, that are part of the Exchange and in which such corporation owns an interest, under the same terms and conditions as set forth in this Agreement, and the other Blackstone Holdings General Partners shall cause
such corporation to execute and deliver a joinder to this Agreement to such effect. If either (i) the Parent or any other Blackstone Holdings General Partner elects to be treated as a corporation for tax purposes, or (ii) the Parent holds
any other Blackstone Holdings General Partner directly or indirectly through an entity that is treated as a corporation for tax purposes, then the provisions of this Agreement shall apply (w) to such other Blackstone Holdings General Partner in
the same manner as it applies to the Corporate Taxpayer and (x) to each partnership, limited partnership and limited liability company Controlled by any other Blackstone Holdings General Partner as if each such entity were a Partnership;
provided that, if any Partnership Units or limited partner interests in other Blackstone Holdings Partnerships were Exchanged prior to an event described in clause (i) or (ii) above, then (y) such Exchange shall be treated for
purposes of this Agreement as having occurred immediately after such event at the Fair Market 

  

 17 

 
Value in existence at the time of such prior Exchange, and (z) the entity that is to be treated in the same manner as the Corporate Taxpayer shall be
required to make the same Tax Benefit Payments pursuant to the terms of this Agreement that it would have been required to make had it been treated in the same manner as the Corporate Taxpayer on the date of such Exchange; provided,
however, that such Tax Benefit Payments shall be payable only with respect to (I) Original Assets that are still owned at the time of the event described in clause (i) or (ii) above, and (II) taxable years of such entity ending
on or after the date of the event described in clause (i) or (ii) above. The parties agree that the terms of this Agreement will be applied to any corporation under this Section 7.11 only if the aggregate Tax Benefit Payments payable
with respect to such corporation are reasonably expected to be more than $10 million. 
 (b) If the Corporate Taxpayer becomes a member of an
affiliated or consolidated group of corporations that files a consolidated income tax return pursuant to Sections 1501 et seq. of the Code or any corresponding provisions of state, local or foreign law, then: (i) the provisions of this
Agreement shall be applied with respect to the group as a whole; and (ii) Tax Benefit Payments shall be computed with reference to the consolidated taxable income of the group as a whole. 
 (c) Notwithstanding any other provision of this Agreement, if Parent acquires one or more assets that, as of an Exchange Date, have not been contributed
to the Corporate Taxpayer (other than Parent’s interests in the other Blackstone Holdings General Partners) (such assets, “Excluded Assets”), then all Tax Benefit Payments due hereunder shall be computed as if such assets had
been contributed to the Corporate Taxpayer on a pro rata basis on the date such assets were first acquired by Parent; provided, however, that if an Excluded Asset consists of stock in a corporation, then, for purposes of this
Section 7.11(c), (i) such corporation (and any corporation Controlled by such corporation) shall be deemed to have contributed its assets to the Corporate Taxpayer in a transaction described in Section 351 of the Code, and
(ii) the Corporate Taxpayer shall be deemed to have contributed all such assets to the Partnerships, in each case on the date on which the Parent acquired stock of such corporation. 
 (d) If any entity that is obligated to make an Exchange Payment hereunder transfers one or more assets to a corporation with which such entity does not
file a consolidated tax return pursuant to Section 1501 of the Code, such entity, for purposes of calculating the amount of any Exchange Payment (e.g., calculating the gross income of the entity and determining the Realized Tax Benefit of such
entity) due hereunder, shall be treated as having disposed of such asset in a fully taxable transaction on the date of such contribution. The consideration deemed to be received by such entity shall be equal to the Fair Market Value of the
contributed asset, plus (i) the amount of debt to which such asset is subject, in the case of a contribution of an encumbered asset or (ii) the amount of debt allocated to such asset, in the case of a contribution of a partner interest.

 Section 7.12. Confidentiality. Each Limited Partner and assignee acknowledges and agrees that the information of the
Corporate Taxpayer is confidential and, except in the course of performing any duties as necessary for the Corporate Taxpayer and its Affiliates, as required by law or legal process or to enforce the terms of this Agreement, shall keep and retain in
the strictest confidence and not to disclose to any Person all confidential matters, acquired pursuant to this Agreement, of the Corporate Taxpayer or any Person included within the Parent 

  

 18 

 
and their respective Affiliates and successors and the other Limited Partners, including, without limitation, the identity of the beneficial holders of
interests in any fund or account managed by the Parent or any of its Subsidiaries, confidential information concerning the Parent, any Person included within the Parent and their respective Affiliates and successors, the other Limited Partners and
any fund, account or investment managed by any Person included within the Parent, including marketing, investment, performance data, fund management, credit and financial information, and other business affairs of the Corporate Taxpayer, any Person
included within the Parent and their respective Affiliates and successors, the other Limited Partners and any fund, account or investment managed directly or indirectly by any Person included within the Corporate Taxpayer learned by the Limited
Partner heretofore or hereafter. This clause 7.12 shall not apply to (i) any information that has been made publicly available by the Corporate Taxpayer or any of its Affiliates, becomes public knowledge (except as a result of an act of such
Limited Partner in violation of this Agreement) or is generally known to the business community and (ii) the disclosure of information to the extent necessary for a Limited Partner to prepare and file his or her tax returns, to respond to any
inquiries regarding the same from any taxing authority or to prosecute or defend any action, proceeding or audit by any taxing authority with respect to such returns. Notwithstanding anything to the contrary herein, each Limited Partner (and each
employee, representative or other agent of such Limited Partner) may disclose to any and all Persons, without limitation of any kind, the tax treatment and tax structure of (x) the Corporate Taxpayer and (y) any of its transactions, and
all materials of any kind (including opinions or other tax analyses) that are provided to the Limited Partners relating to such tax treatment and tax structure. 
 If a Limited Partner or assignee commits a breach, or threatens to commit a breach, of any of the provisions of this Section 7.12, the Corporate Taxpayer shall have the right and remedy to have the provisions of
this Section 7.12 specifically enforced by injunctive relief or otherwise by any court of competent jurisdiction without the need to post any bond or other security, it being acknowledged and agreed that any such breach or threatened breach
shall cause irreparable injury to the Corporate Taxpayer or any of its Subsidiaries or the other Limited Partners and the accounts and funds managed by the Corporate Taxpayer and that money damages alone shall not provide an adequate remedy to such
Persons. Such rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available at law or in equity. 
 Section 7.13. Partnership Agreement. This Agreement shall be treated as part of the partnership agreement of each Partnership 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. 
 Section 7.14. Partnerships. The Corporate Taxpayer hereby agrees that, to the extent it
acquires a general partner interest, managing member interest or similar interest in any Person after the date hereof, it shall cause such Person to execute and deliver a joinder to this Agreement and become a “Partnership” for all
purposes of this Agreement. 
 Section 7.15. Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof. 
 [Remainder of Page Intentionally Left Blank] 
  

 19 

 IN WITNESS WHEREOF, the Corporate Taxpayer and each Limited Partner have duly executed this Agreement as
of the date first written above. 
  

			
	 BLACKSTONE HOLDINGS I/II GP INC.

		
	By:	 	 /s/ Stephen A. Schwarzman

	Name:	 	Stephen A. Schwarzman
	Title:	 	Chairman and Chief Executive Officer
	
	BLACKSTONE HOLDINGS I L.P.
	By:	 	Blackstone Holdings I/II GP Inc., its general partner
		
	By:	 	 /s/ Stephen A. Schwarzman

	Name:	 	Stephen A. Schwarzman
	Title:	 	Chairman and Chief Executive Officer
	
	BLACKSTONE HOLDINGS II L.P.
	By:	 	Blackstone Holdings I/II GP Inc., its general partner
		
	By:	 	 /s/ Stephen A. Schwarzman

	Name:	 	Stephen A. Schwarzman
	Title:	 	Chairman and Chief Executive Officer

  

 20 

			
	AIG BG Holdings Inc.
		
	By:	 	 /s/ Win J. Neuger

	Name:	 	Win J. Neuger
	Title:	 	President

			
	LIMITED PARTNERS
	
	All other Limited Partners, pursuant to the powers of attorney now and hereafter executed in favor of, and granted and delivered to Stephen A. Schwarzman pursuant to Section 8.9 of
that certain Contribution and Sale Agreement, dated as of the date hereof, by and among the Partnership, Blackstone Holdings I/II GP Inc., Blackstone Holdings III GP L.L.C., Blackstone Holdings IV GP L.P., Blackstone Holdings V GP L.P., Blackstone
Holdings I/II Limited Partner Inc., Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P., Blackstone Holdings V L.P., and the other parties thereto.
		
	By:	 	 /s/ Stephen A. Schwarzman

	Name:	 	Stephen A. Schwarzman
	Title:	 	Attorney-in-factExchange Agreement

 Exhibit 10.7 
 EXCHANGE AGREEMENT 
 EXCHANGE AGREEMENT (the “Agreement”), dated as of June 18,
2007, among The Blackstone Group L.P., Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P., Blackstone Holdings V L.P., and the Blackstone Holdings Limited Partners from time to time
party hereto. 
 WHEREAS, the parties hereto desire to provide for the exchange of certain Blackstone Holdings Partnership Units for Common
Units, on the terms and subject to the conditions set forth herein; 
 WHEREAS, the right to exchange Blackstone Holdings Partnership Units
set forth in Section 2.1(a) below, once exercised, represents a several, and not a joint and several, obligation of the Blackstone Holdings Partnerships (on a pro rata basis), and no Blackstone Holdings Partnership shall have any
obligation or right to acquire Blackstone Holdings Partnership Units issued by another Blackstone Holdings 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. 
 “A Exchange” has the meaning set forth in Section 2.1(a)(i) of this Agreement. 
 “Agreement”
has the meaning set forth in the preamble of this Agreement. 
 “B Exchange” has the meaning set forth in
Section 2.1(a)(i)(ii) of this Agreement. 
 “Blackstone Holdings I” means Blackstone Holdings I L.P., a limited
partnership formed under the laws of the State of Delaware, and any successor thereto. 
 “Blackstone Holdings II” means
Blackstone Holdings II L.P., a limited partnership formed under the laws of the State of Delaware, and any successor thereto. 
 “Blackstone Holdings I/II General Partner” means Blackstone Holdings I/II GP Inc., a corporation formed under the laws of the State of Delaware and the general partner of Blackstone Holdings I and Blackstone Holdings II,
and any successor general partner thereof. 
 “Blackstone Holdings III” means Blackstone Holdings III L.P., a limited
partnership formed under the laws of the State of Delaware, and any successor thereto. 

 “Blackstone Holdings III General Partner” means Blackstone Holdings III GP L.L.C., a
limited liability company formed under the laws of the State of Delaware and the general partner of Blackstone Holdings III, and any successor general partner thereof. 
 “Blackstone Holdings IV” means Blackstone Holdings IV L.P., a société en commandite formed under the laws of the Province of Québec, and any successor thereto. 
 “Blackstone Holdings IV General Partner” means Blackstone Holdings IV GP L.P., a limited partnership formed under the laws of the State
of Delaware and the general partner of Blackstone Holdings IV, and any successor general partner thereof. 
 “Blackstone Holdings
V” means Blackstone Holdings V L.P., a société en commandite formed under the laws of the Province of Québec, and any successor thereto. 
 “Blackstone Holdings V General Partner” means Blackstone Holdings V GP L.P., a société en commandite formed under the laws of the Province of Québec and the general partner of
Blackstone Holdings V, and any successor general partner thereof. 
 “Blackstone Holdings General Partners” means,
collectively, Blackstone Holdings I/II General Partner, Blackstone Holdings III General Partner, Blackstone Holdings IV General Partner and Blackstone Holdings V General Partner. 
 “Blackstone Holdings Limited Partner” means each Person that is as of the date of this Agreement or becomes from time to time a limited
partner of each of the Blackstone Holdings Partnerships pursuant to the terms of the Blackstone Holdings Partnership Agreements. 
 “Blackstone Holdings Partnership Agreements” means, collectively, the Amended and Restated Limited Partnership Agreement of Blackstone Holdings I, the Amended and Restated Limited Partnership Agreement of Blackstone
Holdings II, the Amended and Restated Limited Partnership Agreement of Blackstone Holdings III, the Amended and Restated Limited Partnership Agreement of Blackstone Holdings IV and the Amended and Restated Limited Partnership Agreement of Blackstone
Holdings V, as they may each be amended, supplemented or restated from time to time. 
 “Blackstone Holdings Partnership
Unit” means, collectively, one unit of partnership interest in each of Blackstone Holdings I, Blackstone Holdings II, Blackstone Holdings III, Blackstone Holdings IV and Blackstone Holdings V, issued pursuant to their respective Blackstone
Holdings Partnership Agreements. 
 “Blackstone Holdings Partnerships” means, collectively, Blackstone Holdings I,
Blackstone Holdings II, Blackstone Holdings III, Blackstone Holdings IV and Blackstone Holdings V. 
 “Business Day” means
each day that is not a Saturday, Sunday or other day on which banking institutions in New York, New York are authorized or required by law to close. 
  

 2 

 “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. 
 “Exchange Rate” means the number of Common Units for which a Blackstone Holdings
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. 
 “IPO” means the initial public offering and sale of Common Units, as contemplated by the Issuer’s Registration Statement on Form
S-1 (File No. 333-141504). 
 “Issuer” means The Blackstone Group L.P., a limited partnership formed under the laws of
the State of Delaware, and any successor thereto. 
 “Insider Trading Policy” means the Insider Trading Policy of the Issuer
applicable to the directors and executive officers of its general partner, as such insider trading policy may be amended 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 IPO, as such agreement of limited partnership
may be amended, supplemented or restated from time to time. 
 “Person” means an individual or a 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 each Quarter that directors and executive officers of the Issuer’s general partner are permitted to trade under the Insider Trading Policy; provided that there shall be no Quarterly Exchange Date
prior to the first anniversary of the closing of the IPO. 
 “Sale Transaction” has the meaning set forth in
Section 2.9 of this Agreement. 
  

 3 

 “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. 
 ARTICLE II 
 EXCHANGE OF BLACKSTONE HOLDINGS PARTNERSHIP UNITS 
 SECTION 2.1. Exchange of Blackstone Holdings Partnership Units. 
 (a) Subject to adjustment as provided in this Article II, to the provisions of the Blackstone Holdings Partnership Agreements and the Issuer Partnership Agreement and to the provisions of Section 2.2 hereof, each
Blackstone Holdings Limited Partner shall be entitled to exchange Blackstone Holdings Partnership Units held by such Blackstone Holdings Limited Partner on any Quarterly Exchange Date as follows; provided that any such exchange is for a minimum of
the lesser of 1,000 Blackstone Holdings Partnership Units or all of the vested Blackstone Holdings Partnership Units held by such Blackstone Holdings Limited Partner: 
 (i) For the purpose of making a gratuitous transfer to any Charity, a Blackstone Holdings Limited Partner may surrender Blackstone
Holdings Partnership Units to the Issuer in exchange for the delivery by the Issuer of a number of Common Units equal to the product of the number of Blackstone Holdings Partnership Units surrendered multiplied by the Exchange Rate (such
exchange, an “A Exchange”); or 
 (ii) A Blackstone Holdings Limited Partner may surrender Blackstone
Holdings Partnership Units to the Blackstone Holdings Partnerships in exchange for the delivery by the Blackstone Holdings Partnerships of a number of Common Units equal to the product of such number of Blackstone Holdings Partnership Units
surrendered multiplied by the Exchange Rate (such exchange, a “B Exchange”). 
 (b) On the date Blackstone Holdings
Partnership Units are surrendered for exchange, all rights of the exchanging Blackstone Holdings Limited Partner as holder of such Blackstone Holdings Partnership Units shall cease, and such exchanging Blackstone Holdings Limited Partner shall be
treated for all purposes as having become the Record Holder (as defined in the Issuer Partnership Agreement) of such Common Units 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 10.2 of the Issuer Partnership Agreement. 
 (c) For the avoidance of doubt, any exchange of Blackstone
Holdings Partnership Units shall be subject to the provisions of the Blackstone Holdings Partnership Agreements, including without limitation the provisions of Sections 8.01, 8.03 and 8.04. 
 SECTION 2.2. Exchange Procedures. (a) A Blackstone Holdings Limited Partner may exercise the right to exchange Blackstone Holdings
Partnership Units set forth in Section 2.1(a) above by providing a written notice of exchange at least sixty (60) days prior to the applicable Quarterly Exchange Date to: (i) in the case of an A Exchange, the Issuer substantially in
the form of Exhibit A hereto, and (ii) in the case of a B Exchange, each of the Blackstone Holdings General Partners substantially in the form of Exhibit B hereto, duly 

  

 4 

 
executed by such holder or such holder’s duly authorized attorney in respect of the Blackstone Holdings Partnership Units to be exchanged, in each case
delivered during normal business hours at the principal executive offices of the Issuer or the Blackstone Holdings General Partners, as applicable. 
 (b) As promptly as practicable following the surrender for exchange of Blackstone Holdings Partnership Units in the manner provided in this Article II, the Issuer, in the case of an A Exchange, or the Blackstone Holdings Partnerships, in
the case of a B Exchange, shall deliver or cause to be delivered at the principal executive offices of the Issuer or at the office of the Transfer Agent the number of Common Units issuable upon such exchange, issued in the name of such exchanging
Blackstone Holdings Limited Partner. 
 (c) The Issuer, in the case of an A Exchange, or the Blackstone Holdings Partnerships, in the case of
a B 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. 
 (a) Notwithstanding anything to the contrary, a Blackstone Holdings Limited Partner shall not be entitled to exchange Blackstone Holdings Partnership Units, and the Issuer and the Blackstone Holdings Partnerships
shall have the right to refuse to honor any request for exchange of Blackstone Holdings Partnership Units, (i) at any time or during any period if the Issuer or the Blackstone Holdings 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, or (iii) unless the general partner of the Issuer provides its prior written consent, in the case of a Category 1 Limited Partner, Category 2 Limited Partner, Category 3 Limited Partner, Category 4 Limited Partner, or Category 5
Limited Partner (in each case as defined in the Blackstone Holdings Partnership Agreements), if such Blackstone Holdings Limited Partner, at the time of such request for exchange, is, for U.S. federal income tax purposes, a partner of the Issuer.

 SECTION 2.4. Splits, Distributions and Reclassifications. 
 (a) 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 Blackstone Holdings 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 Blackstone Holdings 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 a Blackstone Holdings Limited Partner shall be
entitled to receive upon exchange the amount of such security that such Blackstone Holdings Limited Partner would have received if such exchange had occurred immediately prior to the effective date of such reclassification or other 

  

 5 

 
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 Blackstone Holdings Partnership Unit. 
 SECTION 2.5. Common Units to be Issued. 
 (a) The Issuer covenants that if any Common Units require registration with or approval of any governmental authority under any 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 Blackstone Holdings Partnership from satisfying their obligations in respect of the exchange of the Blackstone Holdings Partnership Units
by delivery of Common Units which are held in the treasury of the Issuer or the Blackstone Holdings Partnership or any of their subsidiaries. 
 SECTION 2.6. Taxes. 
 (a) The delivery of Common Units upon exchange of Blackstone Holdings Partnership Units shall be
made without charge to the Blackstone Holdings Limited Partners for any stamp or other similar tax in respect of such issuance. 
 SECTION
2.7. Restrictions. 
 (a) The provisions of Sections 8.02, 8.03 (other than paragraphs (a), (b) and (d)), 8.04 and 8.06 of
the Blackstone Holdings Partnership Agreements shall apply, mutatis mutandis, to any Common Units issued upon exchange of Blackstone Holdings Partnership Units; and the provisions of paragraphs (b) and (d) of Section 8.03 of
the Blackstone Holdings Partnership Agreements shall permit Transfers of Common Units issued upon exchange of Blackstone Holdings Partnership Units to the same extent as Exchange Transactions (as defined in the Blackstone Holdings Partnership
Agreements) with respect to Blackstone Holdings Partnership Units may be permitted under such provisions. In each case, the provisions of Sections 8.03 and 8.04 of the Blackstone Holdings Partnership Agreements shall apply in the aggregate to
Blackstone Holdings Partnership Units and Common Units received in exchange for Blackstone Holdings Partnership Units held by each Blackstone Holdings Limited Partner or Limited Partner (as defined in the Issuer Partnership Agreement) of the Issuer.

 SECTION 2.8. Disposition of Common Units Issued. 
 (a) A Blackstone Holdings Limited Partner requesting an exchange under this Agreement covenants 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, and that no other Common Units will be acquired or held by such Blackstone Holdings
Limited Partner during such period. Any Blackstone Holdings Limited Partner holding any 

  

 6 

 
Common Units on the last day of such period shall cause all such Common Units to be transferred immediately to a partnership, trust or other entity (other
than an entity disregarded as an entity separate from its parent for United States federal income tax purposes). 
 SECTION
2.9. Subsequent Offerings. 
 (a) The Issuer may from time to time provide the opportunity for Blackstone Holdings Limited
Partners to sell their Blackstone Holdings Partnership Units to the Issuer, the Blackstone Holdings Partnerships or any of their subsidiaries (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. A Blackstone Limited Partner selling Blackstone Holdings Partnership Units in connection with a Sale Transaction must
provide notice to Issuer at least thirty (30) days prior to the cash settlement of such Sale Transaction in respect of the Blackstone Holdings Partnership Units to be sold, in each case 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. (a) The provisions of this Agreement may be amended by the affirmative vote or written
consent of: (i) in the case of matters relating solely to A Exchanges, the Issuer and each of the Blackstone Holdings Partnerships and, after a Change of Control (as such term as defined in the Blackstone Holdings Partnership Agreements), the
holders of at least a majority of the Vested Percentage Interests (as such term as defined in the Blackstone Holdings Partnership Agreements) of the holders of Blackstone Holdings Partnership Units (excluding Blackstone Holdings Partnership Units
held by the Issuer and the Blackstone Holdings General Partners), and (ii) for all other matters, each of the Blackstone Holdings Partnerships and, after a Change of Control (as such term as defined in the Blackstone Holdings Partnership
Agreements), the holders of at least a majority of the Vested Percentage Interests (as such term as defined in the Blackstone Holdings Partnership Agreements) of the Blackstone Holdings Partnership Units (excluding Blackstone Holdings Partnership
Units held by the Issuer and the Blackstone Holdings General Partners). 
 (b) Each Blackstone Holdings Limited Partner hereby expressly
consents and agrees that, whenever in this Agreement it is specified that an action may be taken upon the affirmative vote or written consent of less than all of the Blackstone Holdings Limited Partners, such action may be so taken upon the
concurrence of less than all of the Blackstone Holdings Limited Partners and each Blackstone Holdings Limited Partner shall be bound by the results of such action. 
 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 Issuer, to: 
 345 Park Avenue

 New York, New York 10154 
 Attention: Chief Legal Officer 
 Fax: (212) 583-5258 
 Electronic Mail: friedman@blackstone.com 
  

 7 

 (b) If to Blackstone Holdings I L.P. 
  Blackstone Holdings II L.P. 
  Blackstone Holdings III L.P. 
  Blackstone Holdings IV L.P. 
  Blackstone Holdings V L.P., to: 
 345 Park Avenue 
 New York, New York, 10154 
 Attention: Chief Legal Officer 
 Fax:
(212) 583-5258 
 Electronic Mail: friedman@blackstone.com 
 (c) If to any Blackstone Holdings Limited Partner, to: 
 c/o The Blackstone Group L.P. 
 345 Park Avenue 
 New York, New York 10154 
 Attention: Chief
Legal Officer 
 Fax: (212) 583-5258 
 Electronic Mail: friedman@blackstone.com 
 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. 
 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. 
  

 8 

 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. 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) Notwithstanding the provisions of paragraph (a),
in the case of matters relating to an A Exchange, the Issuer may bring, and in the case of matters relating to a B Exchange, the Blackstone Holdings Partnerships may cause any Blackstone Holdings Partnership to bring, on behalf of the Issuer or such
Blackstone Holdings Partnership or on behalf of one or more Blackstone Holdings Limited Partners, an action or special proceeding in any court of competent jurisdiction for the purpose of compelling a party to arbitrate, seeking temporary or
preliminary relief in aid of an arbitration hereunder, and/or enforcing an arbitration award and, for the purposes of this paragraph (b), each Blackstone Holdings Limited Partner (i) expressly consents to the application of paragraph
(c) of this Section 3.8 to any such action or proceeding, (ii) agrees that proof shall not be required that monetary damages for breach of the provisions of this Agreement would be difficult to calculate and that remedies at law would
be inadequate, and (iii) irrevocably appoints the Issuer, in the case of matters relating to an A Exchange, or the Blackstone Holdings Partnerships, in the case of matters relating to a B Exchange, as such Blackstone Holdings Limited
Partner’s agents 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 Blackstone Holdings Limited Partner of any such service of process,
shall be deemed in every respect effective service of process upon the Blackstone Holdings Limited Partner in any such action or proceeding. 
 (c)(i) EACH BLACKSTONE HOLDINGS LIMITED PARTNER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF COURTS LOCATED IN 

  

 9 

 
NEW YORK, NEW YORK FOR THE PURPOSE OF ANY JUDICIAL PROCEEDING BROUGHT IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 3.8, OR ANY JUDICIAL PROCEEDING
ANCILLARY TO AN ARBITRATION OR CONTEMPLATED ARBITRATION ARISING OUT OF OR RELATING TO OR CONCERNING THIS AGREEMENT. Such ancillary judicial proceedings include any suit, action or proceeding to compel arbitration, to obtain temporary or preliminary
judicial relief in aid of arbitration, or to confirm an arbitration award. The parties acknowledge that the fora designated by this paragraph (c) have a reasonable relation to this Agreement, and to the parties’ relationship with one
another. 
 (ii) 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 such ancillary suit, action or proceeding brought in any court referred to in the preceding paragraph of this Section 3.8 and such parties agree not to plead or claim
the same. 
 (d) 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 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 Blackstone Holdings Partnership or a Blackstone Holdings General Partner, this Agreement shall be treated as
part of the relevant Blackstone Holdings 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. As required by the Code and the Treasury Regulations, the
parties shall report any B Exchange consummated hereunder, in the case of Blackstone Holdings I, Blackstone Holdings II and Blackstone Holdings V, as a taxable sale of Blackstone Holdings Partnership Units by a Blackstone Holdings Limited Partner to
Blackstone Holdings I/II General Partner and Blackstone Holdings V General Partner, and in the case of Blackstone Holdings III and IV, as a tax-free exchange of Blackstone Holdings Partnership Units, and no party shall take a contrary position on
any income tax return, amendment thereof or communication with a taxing authority. 
  

 10 

 SECTION 3.11. Applicable Law. This Agreement shall be governed by, and construed in
accordance with, the law of the State of Delaware. 
 [Remainder of Page Intentionally Left Blank] 
  

 11 

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

			
	THE BLACKSTONE GROUP L.P.
		
	By:	 	 Blackstone Group Management L.L.C.,
 its general
partner

		
	By:	 	 /s/ Stephen A. Schwarzman

	Name:	 	Stephen A. Schwarzman
	Title:	 	Chairman and Chief Executive Officer
	
	BLACKSTONE HOLDINGS I L.P.
		
	By:	 	 Blackstone Holdings I/II GP Inc.,
 its general partner

		
	By:	 	 /s/ Stephen A. Schwarzman

	Name:	 	Stephen A. Schwarzman
	Title:	 	Chairman and Chief Executive Officer
	
	BLACKSTONE HOLDINGS II L.P.
		
	By:	 	 Blackstone Holdings I/II GP Inc.,
 its general partner

		
	By:	 	 /s/ Stephen A. Schwarzman

	Name:	 	Stephen A. Schwarzman
	Title:	 	Chairman and Chief Executive Officer
	
	BLACKSTONE HOLDINGS III L.P.
		
	By:	 	 Blackstone Holdings III GP L.L.C.,
 its general
partner

		
	By:	 	 /s/ Stephen A. Schwarzman

	Name:	 	Stephen A. Schwarzman
	Title:	 	Chairman and Chief Executive Officer

			
	BLACKSTONE HOLDINGS IV L.P.
		
	By:	 	 Blackstone Holdings IV GP L.P.,
 its general partner

		
	By:	 	 Blackstone Holdings IV GP Management L.L.C.,
 its
general partner

		
	By:	 	 /s/ Stephen A. Schwarzman

	Name:	 	Stephen A. Schwarzman
	Title:	 	Chairman and Chief Executive Officer
	
	BLACKSTONE HOLDINGS V L.P.
		
	By:	 	 Blackstone Holdings V GP L.P.,
 its general partner

		
	By:	 	 Blackstone Holdings V GP Management (Delaware) L.P.,
 its general partner

		
	By:	 	 Blackstone Holdings V GP Management L.L.C.,
 its
general partner

		
	By:	 	 /s/ Stephen A. Schwarzman

	Name:	 	Stephen A. Schwarzman
	Title:	 	Chairman and Chief Executive Officer

			
	 AIG BG Holdings Inc.

		
	By:	 	 /s/ Win J. Neuger

	Name:	 	Win J. Neuger
	Title:	 	President

			
	LIMITED PARTNERS
	
	All Limited Partners listed on Schedule I attached hereto, pursuant to the powers of attorney executed in favor of, and granted and delivered to Stephen A. Schwarzman pursuant to
Section 8.9 of that certain Contribution and Sale Agreement, dated as of the date hereof, by and among the Partnership, Blackstone Holdings I/II GP Inc., Blackstone Holdings III GP L.L.C., Blackstone Holdings IV GP L.P., Blackstone Holdings V GP
L.P., Blackstone Holdings I/II Limited Partner Inc., Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P., Blackstone Holdings V L.P., and the other parties thereto.
		
	By:	 	 /s/ Stephen A. Schwarzman

	Name:	 	Stephen A. Schwarzman
	Title:	 	Attorney-in-fact

 EXHIBIT A 
 [FORM OF] 
 NOTICE OF A EXCHANGE 
 The Blackstone Group L.P. 
 345 Park Avenue 
 New York, New York 10154 
 Attention: Chief Legal Officer 
 Fax: (212) 583-5258 
 Electronic Mail: friedman@blackstone.com 
 Reference is hereby made to the Exchange Agreement, dated as of
                , 2007 (the “Exchange Agreement”), among The Blackstone Group L.P., Blackstone Holdings I L.P., Blackstone Holdings II L.P.,
Blackstone Holdings III L.P., Blackstone Holdings IV L.P., Blackstone Holdings V L.P., and the Blackstone Holdings Limited Partners from time to time party thereto, 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 undersigned Blackstone Holdings Limited Partner desires to exchange the
number of Blackstone Holdings Partnership Units set forth below in the form of exchange selected below to be issued in its name as set forth below. 
 Legal
Name of Blackstone Holdings Limited Partner:
                                        
                                        
                                        
         
 Address:                                     
                                        
                                        
                                        
                                        
         
 Number of Blackstone Holdings Partnership Units to be exchanged:
                                        
                                        
                         
 The
undersigned (1) hereby represents that the Blackstone Holdings Partnership Units set forth above are owned by the undersigned, (2) hereby exchanges such Blackstone Holdings Partnership Units for Common Units as set forth in the Exchange
Agreement, (3) hereby irrevocably constitutes and appoints any officer of the Blackstone Holdings Partnerships, the Blackstone Holdings General Partners, the Issuer or Blackstone Group Management L.L.C. as its attorney, with full power of
substitution, to exchange said Blackstone Holdings Partnership Units on the books of the Blackstone Holdings 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. 
  

			
	  

	 Name:

 Dated:
                     

 EXHIBIT B 
 [FORM OF] 
 NOTICE OF B EXCHANGE 
 Blackstone Holdings I L.P. 
 Blackstone Holdings II L.P. 
 Blackstone Holdings III L.P. 
 Blackstone Holdings IV L.P. 
 Blackstone Holdings V L.P. 
 345 Park Avenue 
 New York, New York, 10154 
 Attention: Chief Legal Officer 
 Fax: (212) 583-5258 
 Electronic Mail: friedman@blackstone.com 
 Reference is hereby made to the Exchange Agreement, dated as of
                , 2007 (the “Exchange Agreement”), among The Blackstone Group L.P., Blackstone Holdings I L.P., Blackstone Holdings II L.P.,
Blackstone Holdings III L.P., Blackstone Holdings IV L.P., Blackstone Holdings V L.P., and the Blackstone Holdings Limited Partners from time to time party thereto, 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 undersigned Blackstone Holdings Limited Partner desires to exchange the
number of Blackstone Holdings Partnership Units set forth below in the form of exchange selected below to be issued in its name as set forth below. 
 Legal
Name of Blackstone Holdings Limited Partner:
                                        
                                        
                                        
         
 Address:                                     
                                        
                                        
                                        
                                        
         
 Number of Blackstone Holdings Partnership Units to be exchanged:
                                        
                                        
                         
 The
undersigned (1) hereby represents that the Blackstone Holdings Partnership Units set forth above are owned by the undersigned, (2) hereby exchanges such Blackstone Holdings Partnership Units for Common Units as set forth in the Exchange
Agreement, (3) hereby irrevocably constitutes and appoints any officer of the Blackstone Holdings Partnerships, the Blackstone Holdings General Partners, the Issuer or Blackstone Group Management L.L.C. as its attorney, with full power of
substitution, to exchange said Blackstone Holdings Partnership Units on the books of the Blackstone Holdings 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. 
  

			
	  

	 Name:

 Dated:
                     
  

 19

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