Document:

Exhibit 10.1

 

EXCHANGE AGREEMENT

 

EXCHANGE
AGREEMENT (the “Agreement”), dated as of  July 14, 2010, among
KKR Management Holdings L.P., KKR Fund Holdings L.P., KKR Holdings L.P. and KKR &
Co. L.P.

 

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

 

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

 

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

 

ARTICLE I.

DEFINITIONS

 

Section 1.1             Definitions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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ARTICLE II.

EXCHANGE OF GROUP PARTNERSHIP UNITS

 

Section 2.1             Exchange of Group Partnership Units.

 

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

 

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

 

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

 

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

 

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

 

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

 

(d)           On the date the Exchange of the Group Partnership Units is effective, all
rights of KKR Holdings or a KKR
Holdings Affiliated Person as holder of such Group Partnership Units
shall cease, and KKR Holdings or such KKR
Holdings Affiliated Person shall be treated for all purposes as having
become the Record Holder (as defined in the Issuer Partnership Agreement) of
the Common Units which are the subject of the Exchange and shall be admitted as
a Limited Partner (as defined in the Issuer Partnership Agreement) of the
Issuer in accordance and upon compliance with Section 10.2 of the Issuer
Partnership Agreement.

 

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

 

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

 

Section 2.2             Exchange Procedures.

 

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

 

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

 

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

 

6

 

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

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

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

 

ARTICLE III.

GENERAL PROVISIONS

 

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

 

8

 

Section 3.2             Addresses and Notices.  All notices, requests, claims, demands
and other communications hereunder shall be in writing and shall be given (and
shall be deemed to have been duly given upon receipt) by delivery in person, by
courier service, by fax, by electronic mail (delivery receipt requested) or by
registered or certified mail (postage prepaid, return receipt requested) to the
respective parties at the following addresses (or at such other address for a
party as shall be as specified in a notice given in accordance with this Section 3.2):

 

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

 

	
   

  	
  9
  West 57th Street, Suite 4200

  
	
   

  	
  New
  York, NY 10019

  
	
   

  	
  Attention:
  Chief Financial Officer

  
	
   

  	
  Fax:
  212-750-0003

  

 

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

 

	
   

  	
  9
  West 57th Street, Suite 4200

  
	
   

  	
  New
  York, NY 10019

  
	
   

  	
  Attention:
  Chief Financial Officer

  
	
   

  	
  Fax:
  212-750-0003

  

 

(c) 
If to KKR Holdings, to:

 

	
   

  	
  9
  West 57th Street, Suite 4200

  
	
   

  	
  New
  York, NY 10019

  
	
   

  	
  Attention:
  Chief Financial Officer

  
	
   

  	
  Fax:
  212-750-0003

  

 

(d) If
to the Issuer, to:

 

	
   

  	
  9
  West 57th Street, Suite 4200

  
	
   

  	
  New
  York, NY 10019

  
	
   

  	
  Attention:
  Chief Financial Officer

  
	
   

  	
  Fax:
  212-750-0003

  

 

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

 

Section 3.4             Binding Effect. This Agreement shall be binding upon and inure to
the benefit of all of the parties and, to the extent permitted by this
Agreement, their successors, executors, administrators, heirs, legal
representatives and assigns.  KKR Holdings may enforce the terms
of this agreement in the name of or on behalf of any KKR Holdings Affiliated
Person.  Other than as expressly provided
herein, nothing in this Agreement will be construed to give any

 

9

 

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

 

Section 3.5             Severability.  If any term or other provision of this
Agreement is held to be invalid, illegal or incapable of being enforced by any rule of
law, or public policy, all other conditions and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions is not affected in any manner materially
adverse to any party. Upon a determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in a mutually acceptable manner in
order that the transactions contemplated hereby be consummated as originally
contemplated to the fullest extent possible.

 

Section 3.6             Integration. This Agreement constitutes the entire agreement
among the parties hereto pertaining to the subject matter hereof and supersedes
all prior agreements and understandings pertaining thereto.

 

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

 

Section 3.8             Submission to Jurisdiction; Waiver of Jury
Trial.

 

(a)           Any and all disputes which cannot be settled amicably, including any
ancillary claims of any party, arising out of, relating to or in connection
with the validity, negotiation, execution, interpretation, performance or
non-performance of this Agreement (including the validity, scope and
enforceability of this arbitration provision) shall be finally settled by
arbitration conducted by a single arbitrator in New York in accordance with the
then-existing Rules of Arbitration of the International Chamber of
Commerce. If the parties to the dispute fail to agree on the selection of an arbitrator
within thirty (30) days of the receipt of the request for arbitration, the
International Chamber of Commerce shall make the appointment.  Performance
under this Agreement shall continue if reasonably possible during any
arbitration proceedings.

 

(b)           Notwithstanding the provisions of Section 3.8(a), in the case of
matters relating to a Charitable Exchange or Non-U.S. Exchange, the Issuer may
bring, and in the case of matters relating to a Base Exchange, KKR Holdings may
cause any Group Partnership to bring, on behalf of the Issuer or such Group
Partnership or on behalf of any KKR Holdings Affiliated Person, an action or special proceeding in any court of
competent jurisdiction for the purpose of compelling a party to arbitrate,
seeking temporary or preliminary relief in aid of an arbitration hereunder,
and/or enforcing an arbitration award and, for the purposes of this paragraph.

 

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

 

10

 

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

 

Section 3.9             Counterparts. This Agreement may be executed and delivered
(including by facsimile transmission) in one or more counterparts, and by the
different parties hereto in separate counterparts, each of which when executed
and delivered shall be deemed to be an original but all of which taken together
shall constitute one and the same agreement. Copies of executed counterparts
transmitted by telecopy or other electronic transmission service shall be
considered original executed counterparts for purposes of this Section 3.9.

 

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

 

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

 

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

 

[Signature Page Follows]

 

11

 

	
   

  	
  KKR &
  Co. L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KKR
  Management LLC, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William J. Janetschek

  
	
   

  	
   

  	
  Name:
  William J. Janetschek

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  KKR
  MANAGEMENT HOLDINGS L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KKR
  Management Holdings Corp., its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William J. Janetschek

  
	
   

  	
   

  	
  Name:
  William J. Janetschek

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  KKR
  FUND HOLDINGS L.P.

  
	
   

  	
   

  
	
   

  	
  By:

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

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  KKR
  Management LLC, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William J. Janetschek

  
	
   

  	
   

  	
  Name:
  William J. Janetschek

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  KKR
  HOLDINGS L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KKR
  Holdings GP Limited, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William J. Janetschek

  
	
   

  	
   

  	
  Name:
  William J. Janetschek

  
	
   

  	
   

  	
  Title:
  Director

  

 

 

EXHIBIT A

 

[FORM OF]

NOTICE OF BASE EXCHANGE

 

KKR &
Co. L.P.

9
West 57th Street, Suite 4200

New
York, NY 10019

Attention:
[Chief Financial Officer]

Fax:
212-750-0003

 

Reference
is hereby made to the Exchange Agreement, dated as July 14, 2010 (the “Exchange
Agreement”), among KKR Private Equity Investors, L.P.,  KKR Management Holdings L.P., KKR Fund
Holdings L.P., KKR Holdings L.P., and KKR & Co. L.P. as amended from
time to time.  Capitalized terms used but not defined herein shall have
the meanings given to them in the Exchange Agreement.

 

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

 

Number
of Group Partnership Units to be Exchanged:                                                      

 

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

 

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

 

 

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

 

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

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
					

 

 

EXHIBIT B

 

[FORM OF]

NOTICE OF CHARITABLE OR NON-U.S. EXCHANGE

 

 

KKR
Private Equity Investors, L.P.

c/o
KKR & Co. L.P.

9
West 57th Street, Suite 4200

New
York, NY 10019

Attention:
[Chief Financial Officer]

Fax:
212-750-0003

 

Reference
is hereby made to the Exchange Agreement, dated as of July 14, 2010 (the “Exchange
Agreement”), among KKR Private Equity Investors, L.P., KKR Management
Holdings L.P., KKR Fund Holdings L.P., KKR Holdings L.P., and KKR &
Co. L.P. as amended from time to time.  Capitalized terms used but not
defined herein shall have the meanings given to them in the Exchange Agreement.

 

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

 

Number
of Group Partnership Units to be Exchanged:                                               

 

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

 

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

 

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

 

	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:Exhibit 10.2

 

	
   

  

 

 

REGISTRATION RIGHTS AGREEMENT

 

OF

 

KKR & CO. L.P.

 

 

Dated as of July 14, 2010

 

	
   

  

 

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I DEFINITIONS AND
  OTHER MATTERS

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 1.1

  	
  Definitions

  	
  1

  
	
  Section 1.2

  	
  Construction

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE II REGISTRATION
  RIGHTS

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 2.1

  	
  Exchange Registration

  	
  5

  
	
  Section 2.2

  	
  Demand Registration

  	
  5

  
	
  Section 2.3

  	
  Piggyback Registration

  	
  6

  
	
  Section 2.4

  	
  Lock-Up Agreements

  	
  8

  
	
  Section 2.5

  	
  Registration Procedures

  	
  8

  
	
  Section 2.6

  	
  Indemnification by the Partnership

  	
  11

  
	
  Section 2.7

  	
  Indemnification by Registering Covered Persons

  	
  12

  
	
  Section 2.8

  	
  Conduct of Indemnification Proceedings

  	
  12

  
	
  Section 2.9

  	
  Contribution

  	
  13

  
	
  Section 2.10

  	
  Participation in Public Offering

  	
  14

  
	
  Section 2.11

  	
  Other Indemnification

  	
  14

  
	
  Section 2.12

  	
  Cooperation by the Partnership

  	
  14

  
	
  Section 2.13

  	
  Parties in Interest

  	
  14

  
	
  Section 2.14

  	
  Acknowledgement Regarding the Partnership

  	
  14

  
	
  Section 2.15

  	
  Mergers, Recapitalizations, Exchanges or Other Transactions
  Affecting Registrable Securities

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE III MISCELLANEOUS

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 3.1

  	
  Term of the Agreement; Termination of Certain Provisions

  	
  15

  
	
  Section 3.2

  	
  Amendments; Waiver

  	
  15

  
	
  Section 3.3

  	
  Governing Law

  	
  15

  
	
  Section 3.4

  	
  Submission to Jurisdiction; Waiver of Jury Trial

  	
  15

  
	
  Section 3.5

  	
  Notices

  	
  17

  
	
  Section 3.6

  	
  Severability

  	
  17

  
	
  Section 3.7

  	
  Specific Performance

  	
  17

  
	
  Section 3.8

  	
  Assignment; Successors

  	
  17

  
	
  Section 3.9

  	
  No Third-Party Rights

  	
  18

  
	
  Section 3.10

  	
  Section Headings

  	
  18

  
	
  Section 3.11

  	
  Execution in Counterparts

  	
  18

  
	
   

  	
   

  	
   

  
	
  Appendix A   Covered Person Questionnaire

  	
   

  

 

i

 

REGISTRATION RIGHTS AGREEMENT

 

This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”), is made and entered
into as of July 14, 2010, by and among KKR & Co. L.P., a Delaware
limited partnership (the “Partnership”), KKR Holdings L.P., a Cayman
limited partnership (“KKR Holdings”), and any Covered Person (defined
below) from time to time party hereto.

 

WHEREAS,
KKR Holdings is a holder of Group Partnership Units (defined below), which,
subject to certain restrictions and requirements, are exchangeable at the
option of the holder thereof for the Partnership’s common units representing
limited partner interests (the “Common Units”); and

 

WHEREAS,
the Partnership desires to provide KKR Holdings and Permitted Transferees with
registration rights with respect to Common Units underlying their Group
Partnership Units and any other Common Units they may otherwise hold from time
to time.

 

NOW,
THEREFORE, in consideration of the premises and of the mutual agreements, covenants
and provisions herein contained, the parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS
AND OTHER MATTERS

 

Section 1.1             Definitions.  Capitalized terms used in this Agreement
without other definition shall, unless expressly stated otherwise, have the
meanings specified in this Section 1.1:

 

“Agreement”
has the meaning ascribed to such term in the Recitals and includes any
amendments thereto.

 

“Beneficial
owner” has the meaning set forth in Rule 13d-3 under the Exchange Act.

 

“Board”
means the Board of Directors of the Managing Partner.

 

“Common
Units” has the meaning ascribed to such term in the Recitals and includes
any successor security thereto.

 

“Covered
Group Partnership Units” means, with respect to a Covered Person, such
Covered Person’s Group Partnership Units.

 

“Covered
Person” means KKR Holdings, any subsidiaries through which KKR Holdings may
from time to time hold Group Partnership Units, and any Permitted Transferee,
provided that any such Permitted Transferee agrees in writing to be bound by
the terms of this Agreement in accordance with Section 3.1(c).

 

“Demand
Notice” has the meaning ascribed to such term in Section 2.2(a).

 

 

“Demand
Registration” has the meaning ascribed to such term in Section 2.2(a).

 

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

 

“Exchange
Agreement” means one or more exchange agreements providing for the exchange
of Group Partnership Units or other securities issued by members of the Group
Partnership Group for Common Units, as contemplated by the Registration
Statement.

 

“Exchange
Registration” has the meaning ascribed to such term in Section 2.1(a).

 

“FINRA”
means the Financial Industry Regulatory Authority.

 

“Governmental
Authority” means any national, local or foreign (including U.S. federal,
state or local) or supranational (including European Union) governmental,
judicial, administrative or regulatory (including self-regulatory) agency,
commission, department, board, bureau, entity or authority of competent
jurisdiction.

 

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

 

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

 

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

 

“Group
Partnership Group” means, collectively, the Group Partnerships and their
respective subsidiaries.

 

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

 

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

 

“Indemnified Parties” has the meaning ascribed to such term in Section 2.6.

 

“Initial Registration” means the Common Units registered
pursuant to the U.S. Listing Registration Statement and the Primary Offering
Registration Statement.

 

“KKR
Holdings” has the meaning ascribed to such term in the Recitals and any
successor thereto.

 

2

 

“Law”
means any statute, law, ordinance, regulation, rule, code, executive order,
injunction, judgment, decree or other order issued or promulgated by any
Governmental Authority with jurisdiction over the Partnership or any Covered
Person, as the case may be.

 

“Managing
Partner” means KKR Management LLC, a Delaware limited liability company,
and any successor or other person that is admitted to the Partnership as
general partner of the Partnership, each in its capacity as a general partner
of the Partnership (except as the context otherwise requires).

 

“Partnership”
has the meaning ascribed to such term in the Recitals and includes its
successors.

 

“Permitted
Transferee” means any transferee of a Group Partnership Unit after the date
hereof the transfer of which was authorized by KKR Holdings and permitted by
the Group Partnership Agreements.

 

“Primary
Offering Registration Statement” means the Partnership’s registration
statement on Form S-1 (File No. 333-166687) with regard to an underwritten
public offering of Common Units.

 

“Public
Offering” means an underwritten public offering pursuant to an effective
registration statement under the Securities Act, other than pursuant to a
registration statement on Form S-4 or Form S-8 or any similar or
successor form.

 

“Registering
Covered Person” has the meaning ascribed to such term in Section 2.5(a).

 

“Registrable
Securities” means Common Units that may be delivered in exchange for Group
Partnership Units or otherwise held by Covered Persons from time to time. For
purposes of this Agreement, Registrable Securities shall cease to be
Registrable Securities when (i) a Registration Statement covering resales
of such Registrable Securities has been declared effective under the Securities
Act by the SEC and such Registrable Securities have been disposed of pursuant
to such effective Registration Statement, (ii) such Registrable Securities
of a Covered Person are eligible to be sold by such Covered Person pursuant to Rule 144
(or any successor provision then in effect) under the Securities Act or (iii) such
Registrable Securities cease to be outstanding (or issuable upon exchange).

 

“Registration
Expenses” means any and all expenses incident to the performance of or
compliance with any registration or marketing of securities, including all (i) SEC
and securities exchange registration and filing fees, and all other fees and
expenses payable in connection with the listing of securities on any securities
exchange or automated interdealer quotation system, (ii) fees and expenses
of compliance with any securities or “blue sky” laws (including reasonable fees
and disbursements of counsel in connection with “blue sky” qualifications of
the securities registered), (iii) expenses in connection with the
preparation, printing, mailing and delivery of any registration statements,
prospectuses and other documents in connection therewith and any amendments or
supplements thereto, (iv) security engraving and printing expenses, (v) internal
expenses of the Managing Partner, the Partnership and the Group Partnership
Group (including, without limitation, all salaries and expenses of the officers
and 

 

3

 

employees
of the Managing Partner, the Partnership or the Group Partnership Group
performing legal or accounting duties), (vi) reasonable fees and
disbursements of counsel for the Managing Partner, the Partnership or the Group
Partnership Group and customary fees and expenses for independent certified
public accountants retained by the Managing Partner, the Partnership or the
Group Partnership Group (including the expenses relating to any comfort letters
or costs associated with the delivery by independent certified public
accountants of any comfort letters requested pursuant to Section 2.5(i)), (vii) reasonable
fees and expenses of any special experts retained by the Managing Partner, the
Partnership or the Group Partnership Group in connection with such
registration, (viii) reasonable fees, out-of-pocket costs and expenses of
the Covered Persons, including one counsel selected by KKR Holdings for all of
the Covered Persons participating in the offering, (ix) fees and expenses
in connection with any review by FINRA of the underwriting arrangements or
other terms of the offering, and all fees and expenses of any “qualified
independent underwriter,” including the fees and expenses of any counsel
thereto, (x) fees and disbursements of underwriters customarily paid by
issuers or sellers of securities, but excluding any underwriting fees,
discounts and commissions attributable to the sale of Registrable Securities, (xi) costs
of printing and producing any agreements among underwriters, underwriting
agreements, any “blue sky” or legal investment memoranda and any selling
agreements and other documents in connection with the offering, sale or
delivery of the Registrable Securities, (xii) transfer agents’ and
registrars’ fees and expenses and the fees and expenses of any other agent or
trustee appointed in connection with such offering, (xiii) expenses
relating to any analyst or investor presentations or any “road shows”
undertaken in connection with the registration, marketing or selling of the
Registrable Securities, (xiv) fees and expenses payable in connection with
any ratings of the Registrable Securities, including expenses relating to any
presentations to rating agencies and (xv) all out-of-pocket costs and
expenses incurred by the Managing Partner, the Partnership, the Group
Partnership Group or their appropriate officers in connection with their
compliance with Section 2.5(m).

 

“SEC”
means the Securities and Exchange Commission.

 

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

 

“U.S.
Listing Registration Statement” means the Partnership’s registration
statement on Form S-1 (File No. 333-165414) with regard to the
distribution of Common Units to holders of common units of KKR & Co.
(Guernsey) L.P.

 

Section 1.2             Construction.  Unless the context requires otherwise: (a) any
pronoun used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns, pronouns and verbs
shall include the plural and vice versa; (b) references to Articles and
Sections refer to Articles and Sections of this Agreement; (c) the terms “include,”
“includes,” “including” or words of like import shall be deemed to be followed
by the words “without limitation;” and the terms “hereof,” “herein” or “hereunder”
refer to this Agreement as a whole and not to any particular provision of this
Agreement; and (d) the word “person” means an individual or a corporation,
limited liability company, partnership, joint venture, trust, unincorporated
organization, association (including any group, organization, co-tenancy, plan,
board, council or committee), Governmental Authority or other entity (or series

 

4

 

thereof). The table of contents and headings
contained in this Agreement are for reference purposes only, and shall not
affect in any way the meaning or interpretation of this Agreement.

 

ARTICLE II

 

REGISTRATION
RIGHTS

 

Section 2.1             Exchange
Registration.

 

(a)           The Partnership shall use its commercially reasonable
efforts to cause to be declared effective under the Securities Act by the SEC,
prior to October 1, 2010, one or more registration statements (the “Exchange
Registration”), one or more of which may be in the form of a “shelf”
registration statement, covering (i) the delivery by the Partnership, its
subsidiaries, or the Group Partnership Group, from time to time, to the Covered
Persons of Common Units registered under the Securities Act in exchange for
such Group Partnership Units or (ii) if the Partnership determines that
the registration provided for in clause (i) is not available for any
reason, the registration of resale of such Common Units by any Covered Persons.

 

(b)           The Partnership shall be liable for and pay all
Registration Expenses in connection with any Exchange Registration, regardless
of whether such registration is effected.

 

(c)           Upon notice to each Covered Person participating in any
Exchange Registration, the Partnership may postpone effecting a registration
pursuant to this Section 2.1 (or, with respect to an effective
registration statement, restrict sales thereunder) on up to three occasions
during any period of six consecutive months for a reasonable time specified in
the notice but not exceeding 120 days in the aggregate (which period may not be
extended or renewed), if (i) the Managing Partner shall determine in good
faith that effecting the registration would materially and adversely affect an
offering of securities of the Partnership the preparation of which had then
been commenced or (ii) the Partnership is in possession of material
non-public information the disclosure of which during the period specified in
such notice the Managing Partner believes in good faith would not be in the
best interests of the Partnership.

 

Section 2.2             Demand
Registration.

 

(a)           If at any time on or after October 1, 2010 the
Partnership shall receive a written request (a “Demand Notice”) from KKR
Holdings that the Partnership effect the registration under the Securities Act
of all or any portion of the Registrable Securities as specified in the Demand
Notice (a “Demand Registration”), specifying the information set forth
under Section 2.5(j), then the Partnership shall use its commercially
reasonable efforts to effect, as expeditiously as reasonably practicable,
subject to the restrictions in Section 2.2(d), the registration under the
Securities Act of the Registrable Securities for which KKR Holdings has
requested registration under this Section 2.2, which may be in the form of
a “shelf” registration statement, all to the extent necessary to permit the disposition
(in accordance with the intended methods thereof as aforesaid) of the
Registrable Securities so to be registered.

 

(b)           At any time prior to the effective date of the
registration statement relating to such registration, KKR Holdings may revoke
such Demand Registration request by providing 

 

5

 

a notice to the Partnership revoking such
request.  The Partnership shall be liable
for and pay all Registration Expenses in connection with any Demand Registration.

 

(c)           If a Demand Registration involves an underwritten Public
Offering and the managing underwriter advises the Partnership and KKR Holdings
that, in its view, the number of units of Registrable Securities requested to
be included in such registration exceeds the largest number of units that can
be sold without having a material adverse effect on such offering, including
the price at which such units can be sold (the “Maximum Offering Size”),
the Partnership shall include in such registration, in the priority listed
below, up to the Maximum Offering Size:

 

(i)            first,
all Registrable Securities requested to be registered in the Demand
Registration by KKR Holdings (allocated, if necessary for the offering not to
exceed the Maximum Offering Size, in such proportions as shall be determined by
KKR Holdings);

 

(ii)           second,
any securities proposed to be registered by the Partnership or any securities
proposed to be registered for the account of any other persons, with such
priorities among them as the Partnership shall determine.

 

(d)           Upon notice to KKR Holdings, the Partnership may postpone
effecting a registration pursuant to this Section 2.2 (or, with respect to
an effective registration statement, restrict sales thereunder) on up to three
occasions during any period of six consecutive months for a reasonable time
specified in the notice but not exceeding 120 days in the aggregate (which
period may not be extended or renewed), if (i) the Managing Partner shall
determine in good faith that effecting the registration would materially and
adversely affect an offering of securities of the Partnership the preparation
of which had then been commenced or (ii) the Partnership is in possession
of material non-public information the disclosure of which during the period
specified in such notice the Managing Partner believes in good faith would not
be in the best interests of the Partnership.

 

Section 2.3             Piggyback
Registration.

 

(a)           Subject to any contractual obligations to the contrary, if
the Partnership proposes at any time to register under the Securities Act any
of the equity securities issued by it (other than the Initial Registration or
any registration on Form S-8 or Form S-4, or any successor forms,
relating to Common Units issuable in connection with any employee benefit or
similar plan of the Partnership or pursuant to restricted equity awards granted
by KKR Holdings or in connection with a direct or indirect acquisition by the
Partnership of another person or as a recapitalization or reclassification of
securities of the Partnership), whether or not for sale for its own account,
the Partnership shall each such time give prompt notice at least 15 business
days prior to the anticipated filing date of the registration statement
relating to such registration to KKR Holdings, which notice shall offer KKR
Holdings the opportunity to elect to include in such registration statement the
number of Registrable Securities of the same class or series as those proposed
to be registered held by Covered Persons as KKR Holdings may request (a “Piggyback
Registration”), subject to the provisions of Section 2.3(b).  If KKR Holdings elects to effect a Piggyback
Registration, the Partnership shall give notice of the registration statement
relating to such registration to those Covered Persons who KKR Holdings
determines to afford 

 

6

 

participation in the Piggyback Registration.  Upon the request of KKR Holdings, the
Partnership shall use its commercially reasonable efforts to effect the registration
under the Securities Act of all Registrable Securities that the Partnership has
been so requested to register by KKR Holdings, to the extent necessary to
permit the disposition of the Registrable Securities to be so registered,
provided that (i) if such registration involves an underwritten Public
Offering, all such Covered Persons to be included in the Partnership’s
registration must sell their Registrable Securities to the underwriters
selected by the Partnership on the same terms and conditions as apply to the
Partnership or any other selling person, as applicable, and (ii) if, at
any time after giving notice of its intention to register any securities
pursuant to this Section 2.3(a) and prior to the effective date of
the registration statement filed in connection with such registration, the
Partnership shall determine for any reason not to register such securities, the
Partnership shall give notice to all such Covered Persons and, thereupon, shall
be relieved of its obligation to register any Registrable Securities in
connection with such registration.  No
registration effected under this Section 2.3 shall relieve the Partnership
of its obligations to effect an Exchange Registration or Demand Registration to
the extent required by Section 2.1 or Section 2.2, respectively. The
Partnership shall pay all Registration Expenses in connection with each
Piggyback Registration.

 

(b)           Subject to Section 2.2(c) and any other
contractual obligations to the contrary, if a Piggyback Registration involves
an underwritten Public Offering and the managing underwriter advises the
Partnership that, in its view, the number of Registrable Securities that the
Partnership and such Covered Persons intend to include in such registration
exceeds the Maximum Offering Size, the Partnership shall include in such
registration, in the following priority, up to the Maximum Offering Size:

 

(i)            first,
the Partnership securities proposed to be registered for the account of the
Partnership;

 

(ii)           second,
the Partnership securities proposed to be registered pursuant to any demand
registration rights of third parties;

 

(iii)          third,
all Registrable Securities requested to be included in such registration by any
Covered Persons and all Partnership Securities requested to be included in such
registration pursuant to any piggyback registration rights of third parties,
allocated, if necessary for the offering not to exceed the Maximum Offering
Size, (i) as among such Covered Persons as a group, on the one hand, and
any such third parties, on the other hand, pro rata based on the number of
Registrable Securities owned by such Covered Persons and the number of
Partnership Securities with respect to which such third parties are entitled to
request piggyback registration, and (ii) as among such Covered Persons, in
such proportions as shall be determined by KKR Holdings; and

 

(iv)          fourth,
any securities proposed to be registered for the account of any other persons
with such priorities among them as the Partnership shall determine.

 

(c)           Notwithstanding any provision in this Section 2.3 or
elsewhere in this Agreement, no provision relating to the registration of
Registrable Securities shall be construed as permitting any Covered Person to
effect a transfer of securities that is otherwise prohibited by

 

7

 

the terms of any agreement between such Covered
Person and the Partnership or any of its subsidiaries.  Unless the Partnership shall otherwise
consent, the Partnership shall not be obligated to provide notice or afford
Piggyback Registration to KKR Holdings or any other Covered Person pursuant to
this Section 2.3 unless some or all of such person’s Registrable
Securities are permitted to be transferred under the terms of applicable
agreements between such person and the Partnership or any of its subsidiaries.

 

Section 2.4             Lock-Up
Agreements.  If any
registration of Registrable Securities shall be effected in connection with a
Public Offering, neither the Partnership nor any Covered Person shall effect
any public sale or distribution, including any sale pursuant to Rule 144,
of any Common Units or other security of the Partnership (except as part of
such Public Offering) during the period beginning 14 days prior to the
effective date of the applicable registration statement until the earlier of (i) such
time as the Partnership and the lead managing underwriter shall agree and (ii) 60
days following the pricing of the Public Offering.

 

Section 2.5             Registration
Procedures.  In
connection with any request by KKR Holdings that Registrable Securities be
registered pursuant to Sections 2.2 or 2.3, subject to the provisions of such
Sections, the paragraphs below shall be applicable, and in connection with any
Exchange Registration pursuant to Section 2.1, paragraphs (a), (c), (d), (e) and
(l) below shall be applicable:

 

(a)           The Partnership shall as
expeditiously as reasonably practicable prepare and file with the SEC a
registration statement on any form for which the Partnership then qualifies or
that counsel for the Partnership shall deem appropriate and which form shall be
available for the registration of the Registrable Securities to be registered
thereunder in accordance with the intended method of distribution thereof, and
use its commercially reasonable efforts to cause such filed registration
statement to become and remain effective for a period of not less than 40 days,
or in the case of an Exchange Registration until all of the Registrable
Securities of the Covered Persons included in any such registration statement
(each, a “Registering Covered Person”) shall have actually been
exchanged thereunder.

 

(b)           Prior to filing a registration
statement or prospectus or any amendment or supplement thereto, the Partnership
shall, if requested, furnish to each Registering Covered Person and each
underwriter, if any, of the Registrable Securities covered by such registration
statement copies of such registration statement as proposed to be filed, and
thereafter the Partnership shall furnish to such Registering Covered Person and
each such underwriter, if any, such number of copies of such registration
statement, each amendment and supplement thereto (in each case including all
exhibits thereto and documents incorporated by reference therein), the
prospectus included in such registration statement (including each preliminary prospectus
and any summary prospectus) and any other prospectus filed under Rule 424
or Rule 430A under the Securities Act and such other documents as such
Registering Covered Person or such underwriter may reasonably request in order
to facilitate the disposition of the Registrable Securities owned by such
Registering Covered Person.  The
Registering Covered Person shall have the right to request that the Partnership
modify any information contained in such registration statement, amendment and
supplement thereto pertaining to such 

 

8

 

Registering
Covered Person and the Partnership shall use its all commercially reasonable
efforts to comply with such request, provided, however, that the Partnership
shall not have any obligation to so modify any information if the Partnership
reasonably expects that so doing would cause the prospectus to contain an
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not
misleading.

 

(c)           After the filing of the registration
statement, the Partnership shall (i) cause the related prospectus to be
supplemented by any required prospectus supplement, and, as so supplemented, to
be filed pursuant to Rule 424 under the Securities Act, (ii) comply
with the provisions of the Securities Act with respect to the disposition of
all Registrable Securities covered by such registration statement during the
applicable period in accordance with the intended methods of disposition by the
Registering Covered Persons thereof set forth in such registration statement or
supplement to such prospectus and (iii) promptly notify each Registering
Covered Person holding Registrable Securities covered by such registration
statement of any stop order issued or threatened by the SEC suspending the
effectiveness of such registration statement or any state securities commission
and take all commercially reasonable efforts to prevent the entry of such stop
order or to obtain the withdrawal of such order if entered.

 

(d)           To the extent any “free writing
prospectus” (as defined in Rule 405 under the Securities Act) is used, the
Partnership shall file with the SEC any free writing prospectus that is
required to be filed by the Partnership with the SEC in accordance with the
Securities Act and retain any free writing prospectus not required to be filed.

 

(e)           The Partnership shall use its
commercially reasonable efforts to (i) register or qualify the Registrable
Securities covered by such registration statement under such other securities
or “blue sky” laws of such jurisdictions in the United States any Registering
Covered Person holding such Registrable Securities or each underwriter, if any,
reasonably (in light of the intended plan of distribution) requests and (ii) cause
such Registrable Securities to be registered with or approved by such other
governmental agencies or authorities as may be necessary by virtue of the
business and operations of the Partnership and do any and all other acts and
things that may be reasonably necessary or advisable to enable such Registering
Covered Person to consummate the disposition of the Registrable Securities
owned by such person, provided that the Partnership shall not be required to (A) qualify
generally to do business in any jurisdiction where it would not otherwise be
required to qualify but for this Section 2.5(e), (B) subject itself
to taxation in any such jurisdiction or (C) consent to general service of
process in any such jurisdiction.

 

(f)            The Partnership shall immediately
notify each Registering Covered Person holding such Registrable Securities
covered by such registration statement or each underwriter, if any, at any time
when a prospectus relating thereto is required to be delivered under the
Securities Act, of the occurrence of an event requiring the preparation of a
supplement or amendment to such prospectus so that, as thereafter delivered to
the purchasers of such Registrable Securities, such prospectus will not contain
an untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading and promptly prepare and 

 

9

 

make
available to each such Registering Covered Person or underwriter, if any, and
file with the SEC any such supplement or amendment.

 

(g)           KKR Holdings shall select an
underwriter or underwriters in connection with any Demand Registration that
relates to a Public Offering.  In connection
with any Public Offering, the Partnership shall enter into customary agreements
(including an underwriting agreement in customary form) and take all other
actions as are reasonably required in order to expedite or facilitate the
disposition of such Registrable Securities in any such Public Offering,
including if necessary the engagement of a “qualified independent underwriter”
in connection with the qualification of the underwriting arrangements with
FINRA.

 

(h)           Subject to the execution of confidentiality
agreements satisfactory in form and substance to the Partnership in the
exercise of its good faith judgment, pursuant to the reasonable request of KKR
Holdings or any underwriter, the Partnership will give to each Registering
Covered Person, each underwriter (if any) and their respective counsel and
accountants (i) reasonable and customary access to its books and records
and (ii) such opportunities to discuss the business of the Partnership
with its directors, officers, employees, counsel and the independent public
accountants who have certified its financial statements, as shall be
appropriate, in the reasonable judgment of counsel to such Registering Covered
Person or underwriter, to enable them to exercise their due diligence
responsibility.

 

(i)            The Partnership shall use its
commercially reasonable efforts to furnish to each Registering Covered Person
and to each such underwriter, if any, a signed counterpart, addressed to such
person or underwriter, of (i) an opinion or opinions of counsel to the
Partnership and (ii) a comfort letter or comfort letters from the
Partnership’s independent public accountants, each in customary form and
covering such matters of the kind customarily covered by opinions or comfort
letters, as the case may be, as KKR Holdings or any underwriter reasonably
requests.

 

(j)            Each Registering Covered Person
registering securities under Sections 2.2 or 2.3 shall promptly furnish in
writing to the Partnership the information set forth in Appendix A (which may
be amended from time to time as necessary or advisable in light of applicable
Law) and such other information regarding itself and the distribution of the
Registrable Securities as the Partnership may from time to time reasonably
request and such other information as may be legally required or advisable in
connection with such registration.

 

(k)           Each Registering Covered Person and
each underwriter, if any, agrees that, upon receipt of any notice from the
Partnership of the happening of any event of the kind described in Section 2.5(f),
such Registering Covered Person or underwriter shall forthwith discontinue
disposition of Registrable Securities pursuant to the registration statement
covering such Registrable Securities until such Registering Covered Person’s or
underwriter’s receipt of the copies of the supplemented or amended prospectus
contemplated by Section 2.5(f), and, if so directed by the Partnership,
such Registering Covered Person and any such underwriter shall deliver to the
Partnership all copies, other 

 

10

 

than
any permanent file copies then in such Registering Covered Person’s possession,
of the most recent prospectus covering such Registrable Securities at the time
of receipt of such notice.  If the
Partnership shall give such notice, the Partnership shall extend the period
during which such registration statement shall be maintained effective
(including the period referred to in Section 2.5(a)) by the number of days
during the period from and including the date of the giving of notice pursuant
to Section 2.5(f) to the date when the Partnership shall make
available to such Registering Covered Person a prospectus supplemented or
amended to conform with the requirements of Section 2.5(f).

 

(l)            The Partnership shall use its
commercially reasonable efforts to list all Registrable Securities covered by
such registration statement on any securities exchange or quotation system on
which any of the Registrable Securities are then listed or traded.

 

(m)          The Partnership shall have appropriate
officers of the Managing Partner, the Partnership or the Group Partnerships (i) prepare
and make presentations at any “road shows” and before analysts and rating
agencies, as the case may be, (ii) take other actions to obtain ratings
for any Registrable Securities and (iii) otherwise use their commercially
reasonable efforts to cooperate as reasonably requested by the underwriters in
the offering, marketing or selling of the Registrable Securities.

 

(n)           The Partnership shall cooperate with
the Registering Covered Persons to facilitate the timely delivery of
Registrable Securities to be sold, which shall not bear any restrictive
legends, and to enable such Registrable Securities to be issued in such
denominations and registered in such names as such Registering Covered Persons
may reasonably request at least two business days prior to the closing of any
sale of Registrable Securities.

 

Section 2.6             Indemnification
by the Partnership.  In the
event of any registration of any Registrable Securities of the Partnership
under the Securities Act pursuant to this Article II, the Partnership
will, and it hereby does, indemnify and hold harmless, to the extent permitted
by law, a Registering Covered Person, each affiliate of such Registering
Covered Person and their respective directors and officers or general and
limited partners or members and managing members (including any director,
officer, affiliate, employee, agent and controlling person of any of the
foregoing) and each other person, if any, who controls such seller within the
meaning of the Securities Act (collectively, the “Indemnified Parties”),
from and against any and all losses, claims, damages and liabilities
(including, without limitation, legal fees and other expenses incurred in
connection with any suit, action or proceeding or any claim asserted, as such
fees and expenses are incurred), joint or several, that arise out of, or are
based upon, (1) any untrue statement or alleged untrue statement of a
material fact contained in any registration statement or amendment or
supplement thereto under which such Registrable Securities were registered or
any omission or alleged omission to state therein a material fact required to
be stated therein or necessary in order to make the statements therein not
misleading, or (2) any untrue statement or alleged untrue statement of a
material fact contained in any prospectus, any free writing prospectus or any “issuer
information” filed or required to be filed pursuant to Rule 433(d) under
the Securities Act in respect of the Registrable Securities, or amendment or
supplement thereto, or any omission or alleged omission to state therein a
material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not 

 

11

 

misleading; provided, that the Partnership shall not
be liable to any Indemnified Party in any such case to the extent that any such
loss, claim, damage, liability (or action or proceeding in respect thereof) or
expense arises out of or is based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in such registration statement,
prospectus, any free writing prospectus or any “issuer information” filed or
required to be filed pursuant to Rule 433(d) under the Securities Act
in respect of the Registrable Securities, or amendment or supplement thereto,
in reliance upon and in conformity with written information furnished to the
Partnership by a Registering Covered Person specifically for use in the
preparation thereof.  KKR Holdings may
enforce the provisions of this Section 2.6 for, on behalf of or in the
name of any Indemnified Party.

 

Section 2.7             Indemnification
by Registering Covered Persons.   Each Registering Covered Person hereby
indemnifies and holds harmless, and the Partnership may require, as a condition
to including any Registrable Securities in any registration statement filed in
accordance with this Article II, that the Partnership shall have received
an undertaking reasonably satisfactory to it from any underwriter to indemnify
and hold harmless, the Partnership and all other prospective sellers of
Registrable Securities, the directors of the Managing Partner, each officer of
the Managing Partner or the Partnership who signed the Registration Statement
and each person, if any, who controls the Partnership and all other prospective
sellers of Registrable Securities within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act to the same extent as the
indemnity set forth in Section 2.6 above, but only with respect to any
losses, claims, damages or liabilities that arise out of, or are based upon,
any untrue statement or omission or alleged untrue statement or omission made
in reliance upon and in conformity with written information furnished to the
Partnership by a Registering Covered Person specifically for use in the
preparation of such registration statement, prospectus, any free writing
prospectus or any “issuer information” filed or required to be filed pursuant
to Rule 433(d) under the Securities Act in respect of the Registrable
Securities, or amendment or supplement thereto. 
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Partnership, any of the Registering
Covered Persons or any underwriter, or any of their respective affiliates,
directors, officers or controlling persons and shall survive the transfer of
such securities by such person.  In no
event shall any such indemnification liability of any Registering Covered
Person be greater in amount than the dollar amount of the proceeds received by
such Registering Covered Person upon the sale of the Registrable Securities
giving rise to such indemnification obligation.

 

Section 2.8             Conduct
of Indemnification Proceedings.  Promptly after receipt by an Indemnified
Party hereunder of written notice of the commencement of any action or
proceeding with respect to which a claim for indemnification may be made
pursuant to this Article II, such Indemnified Party will, if a claim in
respect thereof is to be made against an indemnifying party, give written
notice to the latter of the commencement of such action; provided, that the
failure of the Indemnified Party to give notice as provided herein shall not
relieve the indemnifying party of its obligations under this Article II,
except to the extent that the indemnifying party is prejudiced by such failure
to give notice.

 

In
case any such action is brought against an Indemnified Party, unless in such
Indemnified Party’s reasonable judgment, based on advice of counsel, a conflict
of interest between such Indemnified Party and indemnifying party may
reasonably exist in respect of such 

 

12

 

claim,
the indemnifying party will be entitled to participate in and to assume control
of the defense thereof, jointly with any other indemnifying party similarly
notified to the extent that it may wish, with counsel reasonably satisfactory
to such Indemnified Party, and after notice from the indemnifying party to such
Indemnified Party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such Indemnified Party for any legal
or other expenses subsequently incurred by the latter in connection with the
defense thereof other than reasonable costs of investigation.  It is understood and agreed that the
indemnifying person shall not, in connection with any proceeding or related
proceeding in the same jurisdiction, be liable for the fees and expenses of
more than one separate firm (in addition to any local counsel) for all
Indemnified Parties, and that all such fees and expenses shall be reimbursed as
they are incurred. Any such separate firm (x) for any Covered Person, its
affiliates, directors and officers and any control persons of such Indemnified
Party shall be designated in writing by KKR Holdings, (y) in all other
cases shall be designated in writing by the Managing Partner.  The indemnifying person shall not be liable
for any settlement or compromise of a claim, suit, investigation or proceeding,
which is effected without its written consent (which shall not be unreasonably
withheld), but if settled or compromised with such consent, the indemnifying
person agrees to indemnify each Indemnified Party from and against any loss or
liability by reason of such settlement or compromise.  No indemnifying person shall, without the
written consent of the Indemnified Party (which shall not be unreasonably
withheld), effect any settlement or compromise of any pending or threatened
claim, suit, investigation or proceeding in respect of which any Indemnified
Party is or could have been a party and indemnification could have been sought
hereunder by such Indemnified Party, unless such settlement (A) includes
an unconditional release of such Indemnified Party, in form and substance
reasonably satisfactory to such Indemnified Party, from all liability on claims
that are the subject matter of such claim, suit, investigation or proceeding, (B) does
not include any statement as to or any admission of fault, culpability or a
failure to act by or on behalf of any Indemnified Party, and (C) does not
impose on such Indemnified Party any liability or other obligation other than
the payment of monetary sums that will be fully paid by or on behalf of the
indemnifying party.

 

Section 2.9             Contribution.  If the indemnification provided for in this Article II
from the indemnifying party is unavailable to an Indemnified Party hereunder in
respect of any losses, claims, damages, liabilities or expenses referred to
herein, then the indemnifying party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party
as a result of such losses, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party and Indemnified Parties in connection with the actions which resulted in
such losses, claims, damages, liabilities or expenses, as well as any other
relevant equitable considerations.  The
relative fault of such indemnifying party and Indemnified Parties shall be
determined by reference to, among other things, whether any action in question,
including any untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact, has been made by, or relates to
information supplied by, such indemnifying party or Indemnified Parties, and
the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such action.  The
amount paid or payable by a party under this Section 2.9 as a result of
the losses, claims, damages, liabilities and expenses referred to above shall
be deemed to include any legal or other fees or expenses reasonably incurred by
such party in connection with any claim, suit, investigation or proceeding.

 

13

 

The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 2.9 were determined by pro rata allocation or by
any other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph.  No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.

 

Section 2.10           Participation
in Public Offering.  No Covered
Person may participate in any Public Offering hereunder unless such Covered
Person (a) agrees to sell such Covered Person’s securities on the basis
provided in any underwriting arrangements approved by KKR Holdings and (b) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements and the provisions of this Agreement in respect of
registration rights.

 

Section 2.11           Other
Indemnification. 
Indemnification similar to that specified herein (with appropriate
modifications) shall be given by the Partnership and the Registering Covered
Person participating therein with respect to any required registration or other
qualification of securities under any Law other than the Securities Act.

 

Section 2.12           Cooperation
by the Partnership.  If any
Covered Person shall transfer any Registrable Securities pursuant to Rule 144,
the Partnership shall use its commercially reasonable efforts to cooperate with
the Covered Person and shall provide to the Covered Person such information as
may be required to be provided under Rule 144.

 

Section 2.13           Parties
in Interest.  Each
Covered Person shall be entitled to receive the benefits of this Agreement and
shall be bound by the terms and provisions of this Agreement by reason of such
Covered Person’s election to participate in a registration under this Article II.  To the extent Group Partnership Units are
effectively transferred in accordance with the terms of the Group Partnership
Agreements, the transferee of such Group Partnership Units shall be entitled to
receive the benefits of this Agreement and shall be bound by the terms and
provisions of this Agreement upon becoming bound hereby pursuant to Section 3.1(c).

 

Section 2.14           Acknowledgement
Regarding the Partnership. 
Other than those determinations reserved expressly to KKR Holdings, all
determinations necessary or advisable under this Article II shall be made
by the Managing Partner, the determinations of which shall be final and
binding.

 

Section 2.15           Mergers,
Recapitalizations, Exchanges or Other Transactions Affecting Registrable
Securities.  The
provisions of this Agreement shall apply to the full extent set forth herein
with respect to the Registrable Securities, to any and all securities or units
of the Group Partnerships or the Partnership or any successor or assign of any
such person (whether by merger, amalgamation, consolidation, sale of assets or
otherwise) that may be issued in respect of, in exchange for, or in substitution
of such Registrable Securities, by reason of any dividend, split, issuance,
reverse split, combination, recapitalization, reclassification, merger,
amalgamation, consolidation or otherwise.

 

14

 

ARTICLE III

 

MISCELLANEOUS

 

Section 3.1             Term
of the Agreement; Termination of Certain Provisions.

 

(a)           The term of this Agreement shall continue until the first
to occur of (i) such time as no Covered Person holds any Covered Group
Partnership Units or Registrable Securities and (ii) such time as the
Agreement is terminated by KKR Holdings.

 

(b)           Unless this Agreement is theretofore terminated pursuant
to Section 3.1(a) hereof, a Covered Person shall be bound by the
provisions of this Agreement with respect to any Covered Group Partnership
Units or Registrable Securities until such time as such Covered Person ceases
to hold any Covered Group Partnership Units or Registrable Securities.  Thereafter, such Covered Person shall no
longer be bound by the provisions of this Agreement other than Sections 2.7,
2.8, 2.9 and 2.11 and this Article III. 
Any person that has ceased to be a Covered Person and that reacquires
Covered Group Partnership Units or Registrable Securities shall be a Covered
Person; provided that such person shall first sign an agreement in the form
approved by the Partnership acknowledging that such person is bound by the
terms and provisions of the Agreement and such agreement is received by the
Partnership.

 

(c)           Any Permitted Transferee shall be a Covered Person;
provided that such Permitted Transferee is authorized by KKR Holdings to become
a Covered Person and such Permitted Transferee signs an agreement in the form
approved by the Partnership acknowledging that such Permitted Transferee is bound
by the terms and provisions of the Agreement and such agreement is received by
the Partnership.

 

Section 3.2             Amendments;
Waiver.

 

(a)           The provisions of this Agreement may be amended by the
Partnership and KKR Holdings; provided that any consent, waiver, vote or
approval that may be required under this Agreement and any amendment of this
Agreement that has the effect of materially increasing the liabilities of a
Covered Person hereunder or making the obligations of a Covered Person
hereunder materially more onerous to such Covered Person shall require the
approval of such Covered Person.

 

(b)           Each Covered Person understands that from time to time
certain other persons may become Covered Persons and certain Covered Persons
will cease to be bound by the provisions of this Agreement pursuant to the
terms hereof.

 

Section 3.3             Governing
Law.  THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

 

Section 3.4             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, 

 

15

 

negotiation, execution,
interpretation, performance or non-performance of this Agreement (including
without limitation the validity, scope and enforceability of this arbitration
provision) shall be finally settled by arbitration conducted by a single
arbitrator in New York, New York in accordance with the then-existing Rules of
Arbitration of the International Chamber of Commerce; provided, however, that
KKR Holdings shall not be subject to this Section 3.4. If the parties to
the dispute fail to agree on the selection of an arbitrator within thirty (30)
days of the receipt of the request for arbitration, the International Chamber
of Commerce shall make the appointment. 
The arbitrator shall be a lawyer and shall conduct the proceedings in
the English language. Performance under this Agreement shall continue if
reasonably possible during any arbitration proceedings. Except as required by
law or as may be reasonably required in connection with ancillary judicial
proceedings to compel arbitration, to obtain temporary or preliminary judicial
relief in aid of arbitration, or to confirm or challenge an arbitration award,
the arbitration proceedings, including any hearings, shall be confidential, and
the parties shall not disclose any awards, any materials in the proceedings
created for the purpose of the arbitration, or any documents produced by
another party in the proceedings not otherwise in the public domain.

 

(b)           Notwithstanding the provisions of
paragraph (a), the Managing Partner may bring, or may cause the Partnership to
bring, on behalf of the Managing Partner or the Partnership, an action or
special proceeding in any court of competent jurisdiction for the purpose of
compelling a party to arbitrate, seeking temporary or preliminary relief in aid
of an arbitration hereunder, or enforcing an arbitration award and, for the
purposes of this paragraph (b), each Covered Person (i) expressly consents
to the application of paragraph (c) of this Section 3.4 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 Managing Partner as such Covered Person’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 Covered
Person of any such service of process, shall be deemed in every respect
effective service of process upon the Covered Person in any such action or
proceeding.

 

(c)           EACH PARTY HEREBY IRREVOCABLY SUBMITS
TO THE JURISDICTION OF THE FEDERAL AND STATE COURTS LOCATED IN NEW YORK, NEW
YORK FOR THE PURPOSE OF ANY JUDICIAL PROCEEDING BROUGHT IN ACCORDANCE WITH THE
PROVISIONS OF THIS SECTION 3.4, 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 or challenge
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. 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 referred to in this Section 3.4
brought in any court referenced herein and such parties agree not to plead or
claim the same.

 

16

 

Section 3.5             Notices.

 

(a)           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 the intended recipient) by
delivery in person, by courier service, by fax or by registered or certified
mail (postage prepaid, return receipt requested) to the respective parties at
the following addresses (or at such other address for a party as shall be
specified in a notice given in accordance with this Section 3.5):

 

If
to a Covered Person,

 

c/o
KKR & Co. L.P.

9 West 57th Street, Suite 4200

New
York, NY 10019

Attention: General Counsel

Fax: 212-750-7003

 

If
to the Partnership, at

 

KKR &
Co. L.P.

9 West 57th Street, Suite 4200

New
York, NY 10019

Attention: General Counsel

Fax: 212-750-7003

 

The
Partnership shall be responsible for notifying each Covered Person of the
receipt of a notice, request, claim, demand or other communication under this
Agreement relevant to such Covered Person at the address of such Covered Person
then in the records of the Group Partnership Group (and each Covered Person shall
notify the Partnership of any change in such address for notices, requests,
claims, demands or other communications).

 

Section 3.6             Severability.  If any provision of this Agreement is finally
held to be invalid, illegal or unenforceable, (a) the remaining terms and
provisions hereof shall be unimpaired and (b) the invalid or unenforceable
term or provision shall be deemed replaced by a term or provision that is valid
and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision.

 

Section 3.7             Specific
Performance.  Each party
hereto acknowledges that the remedies at law of the other parties for a breach
or threatened breach of this Agreement would be inadequate and, in recognition
of this fact, any party to this Agreement, without posting any bond, and in
addition to all other remedies that may be available, shall be entitled to
obtain equitable relief in the form of specific performance, a temporary
restraining order, a temporary or permanent injunction or any other equitable
remedy that may be then available.

 

Section 3.8             Assignment;
Successors.  This
Agreement shall be binding upon and inure to the benefit of the respective
legatees, legal representatives, successors and assigns of the Covered Persons;
provided, however, that a Covered Person may not assign this Agreement or any
of his rights or obligations hereunder, and any purported assignment in breach
hereof by a Covered Person shall be null and void; and provided further that no
assignment of this Agreement by the Partnership or to a successor of the
Partnership (by operation of law or 

 

17

 

otherwise) shall be valid unless such assignment is
made to a person which succeeds to all or substantially of the business of the
Partnership.

 

Section 3.9             No
Third-Party Rights.  Other than
as expressly provided herein, nothing in this Agreement will be construed to
give any person other than the parties to this Agreement any legal or equitable
right, remedy, or claim under or with respect to this Agreement or any
provision of this Agreement.  This
Agreement and all of its provisions and conditions are for the sole and
exclusive benefit of the parties to this Agreement and their successors and
assigns.

 

Section 3.10           Section Headings.  The headings of sections in this Agreement
are provided for convenience only and will not affect its construction or
interpretation.

 

Section 3.11           Execution
in Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, but all such counterparts shall together constitute but one
and the same instrument.

 

[Rest of page intentionally left blank]

 

18

 

IN
WITNESS WHEREOF, the parties hereto have duly executed or caused to be duly
executed this Agreement as of the dates indicated.

 

	
   

  	
  KKR &
  CO. L.P.

  
	
   

  	
   

  
	
   

  	
  By:
  KKR Management LLC, its

  
	
   

  	
  general
  partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William J. Janetschek

  
	
   

  	
   

  	
  Name:
  William J. Janetschek

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KKR
  HOLDINGS L.P.

  
	
   

  	
   

  
	
   

  	
  By:
  KKR Holdings GP Limited, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William J. Janetschek

  
	
   

  	
   

  	
  Name:
  William J. Janetschek

  
	
   

  	
   

  	
  Title:
  Director

  

 

Appendix A

 

KKR & CO. L.P.

 

Covered Person Questionnaire

 

The
undersigned Covered Person understands that the Partnership has filed or
intends to file with the SEC a registration statement for the registration of
the Common Units (as such may be amended, the “Registration Statement”),
in accordance with Sections 2.2 or 2.3 of the Registration Rights Agreement,
dated as of July 14, 2010 (the “Registration Rights Agreement”),
among the Partnership, KKR Holdings and the Covered Persons referred to
therein.  A copy of the Agreement is
available from the Partnership upon request at the address set forth
below.  All capitalized terms used and
not otherwise defined herein shall have the meanings ascribed thereto in the
Registration Rights Agreement.

 

NOTICE

 

The
undersigned Covered Person hereby gives notice to the Partnership of its
intention to register Registrable Securities beneficially owned by it and
listed below in Item 3 (unless otherwise specified under Item 3) pursuant to
the Registration Statement.  The undersigned,
by signing and returning this Questionnaire, understands that it will be bound
by the terms and conditions of this Questionnaire and the Registration Rights
Agreement.

 

Pursuant
to the Registration Rights Agreement, the undersigned has agreed to indemnify
and hold harmless the Partnership and all other prospective sellers of
Registrable Securities, the directors of the Managing Partner, each officer of
the Managing Partner who signed the Registration Statement and each person, if
any, who controls the Partnership and all other prospective sellers of
Registrable Securities within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act, from and against any and all
losses, claims, damages and liabilities arising in connection with statements
made or omissions concerning the undersigned in the Registration Statement,
prospectus, any free writing prospectus or any “issuer information” in reliance
upon the information provided in this Questionnaire.

 

The
undersigned Covered Person hereby provides the following information to the
Partnership and represents and warrants that such information is accurate and
complete:

 

QUESTIONNAIRE

 

1.                                      Name.

 

	
  (a)

  	
   

  	
  Full Legal Name of Covered Person:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Full Legal Name of Covered Person (if not the same as (a) above)
  through which Registrable Securities Listed in Item 3 below are held:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

	
  (c)

  	
   

  	
  Full Legal name of DTC Participant (if applicable and if not the same
  as (b) above) through which Registrable Securities listed in Item 3
  below are held:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Full Legal Name of natural control person (which means a natural
  person who directly or indirectly alone or with others has power to vote or
  dispose of the Registrable Securities listed in Item 3 below):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

2.                                      Address for Notices to Covered Person:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone:

  	
   

  
	
   

  	
   

  
	
  Fax:

  	
   

  
	
   

  	
   

  
	
  Email:

  	
   

  
	
   

  	
   

  
	
  Contact Person: 

  	
   

  
				

 

3.                                      Beneficial Ownership of Registrable Securities:

 

Number
of Registrable Securities beneficially owned:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

4.                                      Broker-Dealer Status:

 

	
  (a)

  	
   

  	
  Are
  you a broker-dealer?

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes   o               No   o

  
	
   

  	
   

  	
   

  
	
  Note:

  	
   

  	
  If
  yes, the SEC’s staff has indicated that you should be identified as an
  underwriter in the Registration Statement.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Are
  you an affiliate of a broker-dealer?

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes   o               No   o

  

 

If
yes, please identify the broker-dealer with whom the Covered Person is
affiliated and the nature of the affiliation:

 

2

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

	
  (c)

  	
   

  	
  If
  you are an affiliate of a broker-dealer, do you certify that you bought the
  Registrable Securities in the ordinary course of business, and at the time of
  the purchase of the Registrable Securities to be resold, you had no
  agreements or understandings, directly or indirectly, with any person to
  distribute the Registrable Securities?

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes   o               No   o

  
	
   

  	
   

  	
   

  
	
  Note:

  	
   

  	
  If
  no, the SEC’s staff has indicated that you should be identified as an
  underwriter in the Registration Statement.

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  If
  you are (1) a broker-dealer or (2) an affiliate of a broker-dealer
  and answered “no” to Question 4(c), do you consent to being named as an
  underwriter in the Registration Statement?

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes   o               No   o

  

 

5.                                      Beneficial Ownership of Other Securities of the Partnership Owned by the
Covered Person.

 

Except as set forth below in this Item 5, the undersigned Covered
Person is not the beneficial or registered owner of any securities of the
Partnership other than the Registrable Securities listed above in Item 3.

 

Type
and Amount of Other Securities beneficially owned by the Covered Person:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

6.                                      Relationships with the Partnership:

 

Except as set forth below, neither the undersigned Covered Person nor
any of its affiliates, officers, directors or principal equity holders (owners
of 5% or more of the equity securities of the undersigned) has held any
position or office or has had any other material relationship with the Managing
Partner or the Partnership (or its predecessors or affiliates) during the past
three years.

 

State
any exceptions here:

 

	
   

  	
   

  	
   

  

 

3

 

	
   

  	
   

  	
   

  

 

7.                                      Intended Method of Disposition of Registrable Securities (Only Applicable
to a Demand Registration Effected Pursuant to Section 2.2 of the Registration
Rights Agreement):

 

Intended
Method or Methods of Disposition of Registrable Securities beneficially owned:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

The
undersigned agrees to promptly notify the Partnership of any inaccuracies or
changes in the information provided herein that may occur subsequent to the
date hereof and at any time while the Registration Statement remains in effect.

 

By
signing below, the undersigned consents to the disclosure of the information
contained herein in its answers to Items 1 through 7 and the inclusion of such
information in the Registration Statement and the related prospectus.  The undersigned understands that such
information will be relied upon by the Partnership in connection with the
preparation or amendment of the Registration Statement and the related
prospectus.

 

IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this
Questionnaire to be executed and delivered either in person or by its duly
authorized agent.

 

	
  Dated:

  	
  Beneficial
  Owner:

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

PLEASE SEND A COPY OF THE COMPLETED AND EXECUTED QUESTIONNAIRE BY FAX,
AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

 

KKR &
Co. L.P.

9 West 57th Street, Suite 4200

New
York, NY 10019

Attention: General Counsel

Facsimile: 212-750-0003

 

4

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