Document:

EXHIBIT 10.1

 Exhibit 10.1 
  

	[*]	designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Securities and Exchange Commission.

 JER US Debt Co-Investment Vehicle, L.P. 
  

 Amended and Restated 
 Limited Partnership Agreement 
 Dated as of
December 11, 2007 
  

 THE LIMITED
PARTNERSHIP INTERESTS (THE “INTERESTS”) OF JER US DEBT CO-INVESTMENT VEHICLE, L.P. (THE “PARTNERSHIP”) HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), THE
SECURITIES LAWS OF ANY STATE THEREOF OR ANY OTHER APPLICABLE SECURITIES LAWS IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. SUCH INTERESTS MUST BE ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE
OFFERED FOR SALE, PLEDGED, HYPOTHECATED, SOLD, ASSIGNED OR TRANSFERRED AT ANY TIME EXCEPT IN COMPLIANCE WITH (I) THE SECURITIES ACT, ANY APPLICABLE STATE SECURITIES LAWS, AND ANY OTHER APPLICABLE SECURITIES LAWS; AND (II) THE TERMS AND
CONDITIONS OF THIS AGREEMENT. THE INTERESTS MAY NOT BE TRANSFERRED OF RECORD EXCEPT IN COMPLIANCE WITH SUCH LAWS AND THIS AGREEMENT. THEREFORE, PURCHASERS OF SUCH INTERESTS WILL BE REQUIRED TO BEAR THE RISK OF THEIR INVESTMENT FOR AN INDEFINITE
PERIOD OF TIME. 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
		
	 ARTICLE I Definitions
	  	1
		
	 ARTICLE II General Provisions
	  	14
			
	 2.1
	  	 Formation
	  	14
	 2.2
	  	 Name
	  	14
	 2.3
	  	 Organizational Certificates and Other Filings; Limitations on Conduct of Business
	  	15
	 2.4
	  	 Purpose
	  	15
	 2.5
	  	 Principal Office
	  	15
	 2.6
	  	 Registered Office and Registered Agent
	  	15
	 2.7
	  	 Term
	  	15
	 2.8
	  	 Fiscal Year
	  	15
	 2.9
	  	 Withdrawal of Initial Limited Partner
	  	16
		
	 ARTICLE III Capital Contributions; Distributions
	  	16
			
	 3.1
	  	 Capital Contributions
	  	16
	 3.2
	  	 Distributions — General Principles
	  	20
	 3.3
	  	 Amounts and Priority of Distributions
	  	23
	 3.4
	  	 Escrow Account
	  	24
		
	 ARTICLE IV The General Partner
	  	25
			
	 4.1
	  	 Investment Guidelines
	  	25
	 4.2
	  	 Powers of the General Partner
	  	25
	 4.3
	  	 Limitation on Liability
	  	30
	 4.4
	  	 Indemnification
	  	31
	 4.5
	  	 General Partner as Limited Partner
	  	33
	 4.6
	  	 Other Activities
	  	33
	 4.7
	  	 Valuation
	  	34
	 4.8
	  	 Miscellaneous Covenants
	  	35
		
	 ARTICLE V The Limited Partners
	  	35
			
	 5.1
	  	 Management
	  	35
	 5.2
	  	 Liabilities of the Limited Partners
	  	36
	 5.3
	  	 Limited Partners’ Outside Activities
	  	38
	 5.4
	  	 Certain Rights of CalPERS
	  	39
		
	 ARTICLE VI Expenses and Fees
	  	40
			
	 6.1
	  	 Management Fees
	  	40
	 6.2
	  	 Partnership Expenses
	  	41

					
		
	 ARTICLE VII Books and Records and Reports to Partners
	  	43
			
	 7.1
	  	 Books and Records
	  	43
	 7.2
	  	 Federal, State, Local and Non-U.S. Income Tax Information
	  	43
	 7.3
	  	 Reports to Partners
	  	44
		
	 ARTICLE VIII Transfers, Withdrawals and Default
	  	45
			
	 8.1
	  	 Transfer and Withdrawal of the General Partner
	  	45
	 8.2
	  	 Assignments/Substitutions or Withdrawals by Limited Partners
	  	47
	 8.3
	  	 Defaulting Limited Partner
	  	49
	 8.4
	  	 Further Actions
	  	52
	 8.5
	  	 Admissions and Withdrawals Generally
	  	52
	 8.6
	  	 Required/Elective Withdrawals
	  	52
		
	 ARTICLE IX Term and Dissolution of the Partnership
	  	54
			
	 9.1
	  	 Dissolution
	  	54
	 9.2
	  	 Winding-up
	  	55
	 9.3
	  	 Final Distribution
	  	55
	 9.4
	  	 General Partner Clawback
	  	56
	 9.5
	  	 Guarantee of Clawback Performance
	  	56
		
	 ARTICLE X Capital Accounts and Allocations of Profits and Losses
	  	57
			
	 10.1
	  	 Capital Accounts
	  	57
	 10.2
	  	 Allocations of Profits and Losses
	  	57
	 10.3
	  	 Special Allocation Provisions
	  	58
	 10.4
	  	 Tax Allocations
	  	59
	 10.5
	  	 Other Allocation Provisions
	  	60
	 10.6
	  	 Tax Advances
	  	60
		
	 ARTICLE XI Miscellaneous
	  	61
			
	 11.1
	  	 Waiver of Partition and Accounting
	  	61
	 11.2
	  	 Confidentiality
	  	61
	 11.3
	  	 Power of Attorney
	  	63
	 11.4
	  	 Amendments
	  	64
	 11.5
	  	 Entire Agreement
	  	65
	 11.6
	  	 Severability
	  	65
	 11.7
	  	 Notices
	  	65
	 11.8
	  	 Governing Law
	  	66
	 11.9
	  	 Successors and Assigns
	  	67
	 11.10
	  	 Partnership Tax Treatment
	  	67
	 11.11
	  	 Counterparts
	  	67
	 11.12
	  	 Interpretation
	  	67
	 11.13
	  	 Headings
	  	67

					
	 11.14
	  	 Delivery of Certificate of Limited Partnership, etc.
	  	68
	 11.15
	  	 Counsel to the Partnership
	  	68

 Annex A – Investment Guidelines 
 Annex B – Schedule of Capital Commitments 
 Annex C – Form of Guarantee 
 Schedule I – Credit Team Dedication Plan 

 This AMENDED AND
RESTATED LIMITED PARTNERSHIP AGREEMENT (this “Agreement”) of JER US Debt Co-Investment Vehicle, L.P., a Delaware limited partnership (the “Partnership”),
is made as of this 11th day of December, 2007, by and among JER Debt Co-Investment Advisors, L.P., a Delaware limited partnership, as general partner (the
“General Partner”), Daniel T. Ward, as initial limited partner (the “Initial Limited Partner”), and the limited partners of the Partnership. 
 W I T N E S S E T H : 
 WHEREAS, the Partnership was formed pursuant to a Certificate of Limited Partnership, dated as of November 28, 2007, which was executed by the General Partner and filed for recordation in the
office of the Secretary of State of the State of Delaware on November 28, 2007 and a Limited Partnership Agreement dated as of November 28, 2007 between the General Partner and the Initial Limited Partner (the “Original
Agreement”); and 
 WHEREAS, the parties hereto desire to enter into this Amended and Restated Limited Partnership
Agreement of the Partnership to permit the withdrawal of the Initial Limited Partner and the admission as limited partners of the Partnership of parties as limited partners of the Partnership and further to make the modifications hereinafter set
forth; 
 NOW, therefore, in consideration of the mutual promises and agreements herein made and intending to be legally bound
hereby, the parties hereto agree to amend and restate the Original Agreement in its entirety to read as follows: 
 ARTICLE I

 Definitions 
 As
used herein, the following terms shall have the following meanings: 
 [*]% Preferred Return: With respect to any Limited Partner
other than Excepted JER Investors, an annualized cumulative monthly compounded internal rate of return of [*]% which (a) the aggregate amount of Investment Proceeds from Realized Investments that have been distributed to such Limited Partner on
or prior to such date represents on (b) the total amount of Realized Capital and Costs of such Limited Partner. Such calculation shall (a) commence on the date or dates such Realized Capital and Costs were paid (or deemed paid) by such
Limited Partner, taking into account the timing and amount of such Realized Capital and Costs with the allocable portion of such Limited Partner’s Capital Contributions for Organizational Expenses, Management Fees and Partnership Expenses
included in such Limited Partner’s Realized Capital and Costs being determined on a pro rata basis, (b) take into account the timing and amount of distributions made to such Limited Partner and (c) treat payments made or received
during a month as being made or received as of the first day of the month. 
 1940 Act: The United States Investment Company Act of
1940, as amended, as the same may be further amended from time to time. 

 Acquisition Costs: In respect of an Investment, the historic acquisition cost and on-going capital
expenditure (if any) of such Investment (including any third party financing) together with any expenses related to such acquisition including, without limitation, costs, transfer taxes, fees and expenses of professional advisers and other related
fees. 
 Act: The Delaware Revised Uniform Limited Partnership Act, 6 Del. Code § 17-101 et seq., as the same may be
further amended from time to time. 
 Adjusted Capital Account Balance: Means, with respect to any Partner, the balance in such
Partner’s Capital Account adjusted (i) by taking into account the adjustments, allocations and distributions described in U.S. Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6); and (ii) by adding to such balance
such Partner’s share of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain, determined pursuant to U.S. Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5) and any amounts such Partner is obligated to restore or deemed
to be obligated to restore pursuant to any provision of this Agreement. The foregoing definition of Adjusted Capital Account Balance is intended to comply with the provisions of U.S. Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall
be interpreted consistently therewith. 
 Advisers Act: The United States Investment Advisers Act of 1940, as amended, as the same may
be further amended from time to time. 
 Affiliate: With respect to any Person, means any Person directly or indirectly controlling,
controlled by or under common control with the specified Person; provided, however, that neither (a) the Partnership, (b) any Investment, nor (c) any Person controlled by the Partnership or any Investment, shall be an
Affiliate of the General Partner for purposes of this Agreement. As used in this definition of Affiliate, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting securities, by contract, or otherwise. 
 Agreement: This
Amended and Restated Limited Partnership Agreement, including annexes hereto, as the same may be amended, modified or supplemented from time to time. 
 Appraised Value With Carry: With respect to (i) the redemption of the Interest of any Limited Partner pursuant to Section 8.6 or (ii) a removal of the General Partner without cause pursuant to
Section 8.1(d), a price equal to the value of the relevant Interest, inclusive (except in the case of an Excepted JER Investor) of the effect of any potential Carried Interest payments to the General Partner, determined on the assumption that
the Investments were sold for their Fair Market Values and the proceeds therefrom were distributed to the Partners in accordance with this Agreement after credit or debit, as the case may be, for the amount of the Partnership’s other assets and
liabilities determined in accordance with GAAP or by an independent valuation expert selected by the General Partner and reasonably acceptable to CalPERS. 
 Appraised Value Without Carry: With respect to (i) the purchase of the General Partner’s Interest in the Partnership upon the occurrence of a Disabling Event or (ii) a removal of 

  

 2 

 
the General Partner pursuant to Section 8.1(c), a price equal to the value of the General Partner’s Interest in the Partnership (exclusive of any
potential Carried Interest payments to the General Partner) based upon the pro rata share (based upon Capital Contributions applied in making Investments) of the Fair Market Value of the Investments and the amount of the Partnership’s other
assets and liabilities determined in accordance with GAAP or by an independent valuation expert selected by the General Partner and reasonably acceptable to CalPERS. 
 Approved Replacement: A person proposed as an Approved Replacement for any member of the Credit Team by the General Partner in consultation with CalPERS; provided, that any
such Approved Replacement shall be reasonably determined by the General Partner to be of comparable experience and standing in the real estate community as the person being replaced on the Credit Team. 
 Assignee: As defined in Section 8.2(a). 
 Bankruptcy: With respect to any Person, any (i) assignment by such Person for the benefit of creditors, (ii) application by such Person for the appointment of a trustee, liquidator, receiver or custodian of any substantial
part of such Person’s assets, (iii) filing of a petition or commencement of a proceeding by such Person relating to itself under any bankruptcy, reorganization, arrangement or similar law, (iv) filing of a petition or commencement of
a proceeding under any bankruptcy, reorganization, arrangement or similar law against such Person where either (a) such Person has effectively given its consent or (b) such proceeding has continued undischarged and unstayed for a period of
60 days. 
 Benefit Plan Partner: Any Limited Partner that is an “employee benefit plan” within the meaning of
Section 3(3) of ERISA (whether or not subject to ERISA), a “plan” within the meaning of Section 4975(e)(1) of the Code (whether or not subject to Section 4975 of the Code) or any Limited Partner investing the assets of any
such “employee benefit plan” or “plan”. 
 B-Notes: means a junior participation interest in a first mortgage loan
on a single real estate property or group of real estate properties. 
 Broken Deal Expenses: All out-of-pocket costs and expenses, if
any, payable to third parties, incurred by or on behalf of the Partnership, in developing, diligencing, negotiating and structuring prospective or potential Investments which are not ultimately made, including any (i) legal, accounting,
diligencing, advisory, financing and consulting or other third-party expenses in connection therewith and any travel and accommodation expenses, (ii) all fees (including commitment fees) costs and expenses of lenders, investment banks and other
financing sources in connection with arranging financing for a proposed Investment that is not ultimately made, and (iii) any deposits or down payments of cash or other property which are forfeited in connection with a proposed Investment that
is not ultimately made; provided, that any Broken Deal Expenses payable to JER and/or any of its Affiliates shall only be for reasonable travel and accommodation expenses. 
 Business Day: A day which is not a Saturday, Sunday or other day on which banks are authorized or required by law to be closed in McLean,
Virginia, United States. 
  

 3 

 CalPERS: California Public Employees’ Retirement System, a unit of the State and Consumer
Services Agency of the State of California. 
 Capital Account: As defined in Section 10.1. 
 Capital Commitment: As to any Partner, the amount set forth as such in Annex B as its Capital Commitment, as such amount may be modified in
accordance herewith. 
 Capital Contribution: As to any Partner at any time, the aggregate amount of capital actually contributed
to the Partnership by such Partner pursuant to Section 3.1(a) on or prior to such time. 
 Carried Interest: All amounts
distributed to the General Partner pursuant to Sections 3.3(a)(iv) and 3.3(a)(v). 
 Carrying Value: With respect to any
Partnership asset, the asset’s adjusted basis for U.S. federal income tax purposes, except that the Carrying Values of all Partnership assets shall be adjusted to equal their respective Fair Market Values, in accordance with the rules set forth
in U.S. Treasury Regulations Section 1.704-1(b)(2)(iv)(f), except as otherwise provided herein, immediately prior to: (a) the date of the acquisition of any additional Interest by any new or existing Partner in exchange for more than a de
minimis Capital Contribution; (b) the date of the distribution of any Partnership property to a Partner; or (c) any other date required by U.S. Treasury Regulation Section 1.704-1(b)(2)(iv)(f); provided, that adjustments
pursuant to clauses (a) and (b) above shall be made only if the General Partner reasonably determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Partners. The Carrying Value of any
Partnership asset distributed to any Partner shall be adjusted immediately prior to such distribution to equal its Fair Market Value. The Carrying Value of any asset contributed by a Partner to the Partnership shall be the Fair Market Value of the
asset at the date of its contribution. Depreciation shall be calculated by reference to Carrying Value rather than tax basis once Carrying Value differs from tax basis. 
 Cause: Means (i) a finding by a court of competent jurisdiction that the General Partner has committed a breach of the terms of this Agreement or of its duties under this Agreement or of duties otherwise
owed to the Partnership or the Limited Partners under applicable law or a breach of any representation or warranty made in this Agreement or a violation of applicable federal securities laws, in each case which has a material adverse effect on the
business of the Partnership or the ability of the General Partner to perform its duties under this Agreement; provided, that any such breach or violation, which does not have a material adverse effect on the business of the Partnership or the
ability of the General Partner to perform its duties under this Agreement, must be cured within forty-five (45) days after the finding by a court of competent jurisdiction that such breach has occurred and a failure to cure such breach or
violation within forty-five (45) days after such finding by a court shall also constitute “Cause” for the purposes hereof, (ii) a finding by a court of competent jurisdiction of an act constituting willful misconduct, gross
negligence or fraud by the General Partner, partners thereof, or any employees of the General Partner in connection with the performance of their duties under the terms of this Agreement; provided, that, with respect to an act of gross
negligence, such act will only constitute Cause if it has a material adverse effect on the Partnership or the Limited Partners or (iii) the criminal conviction of the General Partner or any partner thereof in connection with any JER activities.

  

 4 

 CDOs: shall mean vehicles that issue debt obligations which are secured with Investments
contributed, sold, transferred or otherwise encumbered to such vehicles by the Partnership. 
 Certificate of Limited Partnership: The
Certificate of Limited Partnership of the Partnership, dated as of November 28, 2007, which was executed by the General Partner and filed in the office of the Secretary of State of the State of Delaware on November 28, 2007 and all
subsequent amendments thereto and restatements thereof.  
 Closing: December 11, 2007. 
 CMBS: Commercial mortgage-backed securities or any other securities whose return is linked to a pool of indebtedness secured by commercial real
estate. 
 Code: The U.S. Internal Revenue Code of 1986, as the same may be amended from time to time. 
 Co-Investment Commitment: The aggregate Capital Commitments of JERIT and JER Fund IV to the Partnership (which, for the avoidance of
doubt may be made directly or through subsidiaries that are wholly-owned by JERIT and/or JER Fund IV), which may be made to the Partnership directly as a Capital Commitment or, indirectly, as a capital commitment to the General Partner which then
makes a Capital Commitment to the Partnership. 
 Commitment Period: The period from the date of the Closing through the
Expiration Date. 
 Credit Team: The individuals listed on Schedule I hereto and any Approved Replacement for any of the foregoing, in
each case for so long as such Person is an employee of JER. 
 Credit Team Dedication Plan: The policy relating to certain time
commitments of the Credit Team, as attached hereto as Schedule I. 
 Cumulative Net Distributions: As defined in
Section 3.4(c)(i). 
 Current Proceeds: Proceeds from an Investment other than Disposition Proceeds, net of Partnership Expenses
and reserves therefor which are allocated to such proceeds in accordance with Section 6.2(d) and (e). 
 Defaulting Limited Partner: As defined in Section 8.3(b). 
 Disabling Event: The Bankruptcy or
Insolvency of the General Partner or the General Partner ceasing to be the general partner of the Partnership pursuant to Section 17-402 of the Act other than (a) as permitted by Section 8.1(a) or (c) pursuant to a removal and
replacement of the General Partner as provided in Section 8.1(c). 
  

 5 

 Disposition: The sale, exchange, redemption, repayment, repurchase or other disposition by the
Partnership of all or any portion of an Investment for cash or for Marketable Securities which are to be distributed to the Limited Partners pursuant to Section 3.2(b) and shall include the receipt by the Partnership of a liquidating dividend
or other like distribution for cash or in kind on such Investment or any portion thereof which are to be distributed to the Limited Partners pursuant to Section 3.2(b) and shall also include the distribution in kind to the Limited Partners of
all or any portion of such Investment as permitted hereby. The General Partner shall determine in good faith whether and to what extent a Disposition has occurred as a result of the refinancing of an Investment. A Disposition shall be deemed to
include an Investment becoming worthless within the meaning of Section 165(g) of the Code or as determined by the General Partner in its good faith discretion. 
 Disposition Proceeds: All amounts received by the Partnership upon the Disposition of an Investment, net of Partnership Expenses and reserves for Partnership Expenses which are allocated thereto in accordance
with Section 6.2(d) and (e). 
 Dissolution Sale: All sales and liquidations by or on behalf of the Partnership of its
assets in connection with or in contemplation of the winding-up of the Partnership. 
 ERISA: The U.S. Employee Retirement Income
Security Act of 1974, as the same may be amended from time to time. 
 ERISA Partner: Any Limited Partner that is a “benefit plan
investor” within the meaning of Section 3(42) of ERISA. 
 Escrow Account: As defined in Section 3.4(a). 
 Event of Dissolution: As defined in Section 9.1. 
 Excepted JER Investors: Means JER Fund IV and JERIT to the extent either of the foregoing makes a Capital Commitment directly to the Partnership, or any of their respective affiliates. 
 Excess Organizational Expenses: As defined in the definition of Organizational Expenses. 
 Excess 20% Amount: As defined in Section 3.4(c)(i). 
 Expiration Date: The date which is the first anniversary of the Closing. 
 Fair Market
Value: The fair market value of the Investments, determined as provided in Section 4.7. 
 Final Clawback Amount: As defined
in Section 9.4(a). 
 Final Clawback Determination Date: As defined in Section 3.4(c). 
 Final Distribution: The distribution described in Section 9.3. 
  

 6 

 Fiscal Quarter: The calendar quarter or, in the case of the first fiscal quarter of the
Partnership, the period commencing on the Initial Closing and ending on the last day of the calendar quarter occurring at least 45 days after the Closing and, in the case of the last fiscal quarter of the Partnership, ending on the date on which the
winding up of the Partnership is completed, as the case may be. 
 Fiscal Year: As defined in Section 2.8. 
 FOIA: The Freedom of Information Act, 5 U.S.C. § 552, (“FOIA”), any state public records access law, any U.S. state or other
U.S. jurisdiction’s laws similar in intent or effect to FOIA, or any other similar statutory or regulatory requirement 
 Follow-On
Investment: Any further investment in or relating to an existing Investment for which the Partnership has entered into a letter of intent, agreement in principle or definitive agreement to make at the time that the existing Investment is made.

 Follow-Up Investment: Any Investment which (a) has not been made on or prior to the Expiration Date, (b) prior to the
Expiration Date the Partnership has entered into a letter of intent, agreement in principle or definitive agreement to make, (c) if the Partnership has not entered into a definitive agreement to make the Investment prior to the Expiration Date,
the Partnership enters into a definitive agreement to make within 6 months after the Expiration Date and (d) the Partnership schedules a closing for within 6 months after the Expiration Date; provided, that any amounts drawn down for a
Follow-Up Investment shall be promptly returned to the Partners if such Follow-Up Investment does not close within 6 months after the Expiration Date. 
 Full Investment: The time at which the excess of (a) the aggregate Capital Commitments over (b) the aggregate Capital Contributions which have been made or called, committed or reserved for
Investments (including Follow-On Investments and Follow-Up Investments) is equal to or less than 10% of the aggregate Capital Commitments. 
 Fund Level Information: means (i) the name, address and vintage year of the Partnership, (ii) the Capital Commitment of a Limited Partner, (iii) the aggregate amount of Capital Contributions made by a Limited Partner,
(iv) the dollar amount, on a Fiscal Year-end basis, of cash distributions received by a Limited Partner, (v) the remaining value of the Partnership assets attributable to a Limited Partner’s investment in the Partnership,
(vi) the net internal rate of return of the Partnership since inception, (vii) the investment multiple of the Partnership since inception, (viii) the dollar amount of the aggregate Management Fees, Partnership Expenses, Organizational
Expenses and other costs and expenses paid by a Limited Partner, in each case of the above, on a Fiscal Year-end basis and (ix) the dollar amount of cash profits received by a Limited Partner from the Partnership on a Fiscal Year-end basis;
provided, that the foregoing shall not include any information about any current, former or prospective Portfolio Company. 
 GAAP: Generally accepted accounting principles in the United States. 
  

 7 

 General Partner: JER Debt Co-Investment Advisors, L.P., a Delaware limited partnership and an
Affiliate of JER, and any general partner substituted therefor in accordance with this Agreement. 
 Governmental Plan: A
“governmental plan” within the meaning of Section 3(32) of ERISA, and when the context requires, a Limited Partner that is a Governmental Plan. 
 Guarantee: As defined in Section 9.5. 
 Indebtedness: With respect to the Partnership or
a direct or indirect Investment entity, (i) all indebtedness of such Person for borrowed money or for the deferred purchase price of property, goods or services, including reimbursement obligations, and all other obligations contingent or
otherwise of such Person with respect to surety bonds, letters of credit and bankers’ acceptances whether or not matured, and hedges and other derivative contracts and financial instruments, (ii) all obligations of such Person evidenced by
notes, bonds, debentures, or similar instruments, (iii) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of
the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (iv) all capital lease obligations of such Person, (v) all indebtedness referred to in clause (i), (ii), (iii), or
(iv) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any lien upon or in property (including accounts and contract rights) owned by such Person, even though such
Person has not assumed or become liable for the payment of such Indebtedness, (vi) all Indebtedness of others guaranteed by such Person and (vii) all amounts (including, without limitation, interest and prepayment premiums) owing on any
such Indebtedness. 
 Indemnified Party: As defined in Section 4.3(a). 
 Initial Limited Partner: As defined in the introduction hereto. 
 Insolvency: With respect to any Person, the admission by such Person in writing that it is unable to pay its debts generally as they come due, the taking by such Person of any corporate action in furtherance of
any petition, application or proceeding relating to itself under any bankruptcy, reorganization, arrangement or similar law, or such Person becoming insolvent or being unable to pay its obligations and debts when they generally become due.

 Interest: The entire partnership interest owned by a Partner in the Partnership at any particular time, including the right of such
Partner to any and all benefits to which a Partner may be entitled as provided in this Agreement, together with the obligations of such Partner to comply with all the terms and provisions of this Agreement. 
 Interim GP Clawback Amount: The sum of the Investment Related Interim GP Clawback Amount and the Other Interim GP Clawback Amount. 
 Investments: As defined in the Investment Guidelines. 
 Investment Guidelines: The investment objectives and policies set forth in Annex A. 
  

 8 

 Investment Proceeds: Current Proceeds and Disposition Proceeds. 
 Investment Related Clawback Amount: As defined in Section 5.2(c)(i). 
 Investment Related Interim GP Clawback Amount: As defined in Section 5.2(c)(i). 
 Investor Note Facility: As defined in Section 4.2(c)(ii). 
 JER: J.E. Robert Company, Inc., a Virginia corporation. 
 JER Fund IV: The collective
reference to JER Real Estate Partners IV, L.P. and JER Real Estate Qualified Partners IV, L.P., any additional collective investment vehicles or other arrangements for certain types of investors formed to co-invest in the same real estate and real
estate related investments as such partnerships, and any successor investment vehicles thereto. 
 JERIT: JER Investors Trust Inc., a
publicly traded real estate investment trust. 
 Legally Binding Agreement: An agreement to make an Investment which is legally
binding on the Partnership and which does not provide for the unilateral right of the Partnership to cancel or terminate without penalty or liability. 
 Limited Partners: The parties listed as limited partners in the books and records of the Partnership or any Person who has been admitted to the Partnership as a substituted or additional limited partner of
the Partnership in accordance with this Agreement in each case as long as such person remains a limited partner of the Partnership in accordance herewith. 
 Lock-Up Period: The period commencing on date of the Closing and expiring on [*]. 
 Majority (or
other specified percentage) in Interest: A “Majority in Interest” of the Limited Partners means, at any time, the Limited Partners holding a majority of the total limited partners interests then entitled to vote in the
Partnership, as determined on the basis of Capital Commitments. Any other specified percentage in Interest of the Limited Partners means, at any time, the Limited Partners holding the specified percentage of the total limited partnership interests
then entitled to vote in the Partnership, as determined on the basis of Capital Commitments. 
 Management Fee: The management fee
payable to the General Partner in accordance with this Agreement. 
 Management Fee Payment Date: Following the Closing, the first day
of each calendar quarter or, with respect to any particular installment of the Management Fee, any subsequent date or dates to which the General Partner shall determine to defer payment of the Management Fee. 
  

 9 

 Marketable Securities: Securities (a) of a class that are traded on an established securities
exchange, reported through an established over-the-counter trading system or otherwise traded over-the-counter and (b) are freely tradeable. Freely tradeable for this purpose shall mean securities that are not subject to any contractual
restrictions on transfer and that are transferable by a Limited Partner pursuant to applicable securities laws. 
 Mezzanine Loans:
Loans secured by junior liens on real estate properties and/or by liens on the partnership or membership interests in the borrower’s property owning entities. 
 Net Loss from Writedowns: As defined in Section 3.3(c). 
 Nonrecourse Deductions: As
defined in U.S. Treasury Regulations Section 1.704-2(b). 
 Open Meetings Act: As defined in Section 11.2(d). 
 Organizational Expenses: All out-of-pocket costs and expenses incurred in connection with the organization of the Partnership and the General
Partner and the offering of interests in the Partnership, including, without limitation, any related legal and accounting fees and expenses, printing and document production costs, long distance telephone charges, postage and delivery charges,
duplicating and travel expenses; provided, that the total amount of Organizational Expenses to be paid by the Limited Partners that are not Affiliates of JER shall not exceed, unless otherwise approved by CalPERS, $500,000 and,
provided, further that Organizational Expenses in excess of $500,000 or such other amount approved by CalPERS (“Excess Organizational Expenses”) may be paid by such Limited Partners, but in such event the Management
Fee payable by such Limited Partners shall be reduced by an equivalent amount. To the extent that any Organizational Expenses have been borne by the General Partner or any of its Affiliates, the General Partner shall be entitled to be reimbursed by
the Partnership. 
 Original Agreement: As defined in the recitals hereto. 
 Other Clawback Amount: As defined in Section 5.2(c)(ii). 
 Other Interim GP Clawback Amount: As defined in Section 5.2(c)(ii). 
 Partner Nonrecourse
Debt Minimum Gain: An amount with respect to each partner nonrecourse debt (as defined in U.S. Treasury Regulations Section 1.704-2(b)(4)) equal to the Partnership Minimum Gain that would result if such partner nonrecourse debt were treated
as a nonrecourse liability (as defined in Treasury Regulations Section 1.752-1(a)(2)) determined in accordance with Treasury Regulations Section 1.704-2(i)(3). 
 Partner Nonrecourse Deductions: As defined in U.S. Treasury Regulations Section 1.704-2(i)(2). 
 Partners: The General Partner and the Limited Partners. 
 Partnership: JER US Debt Co-Investment Vehicle, L.P., a
Delaware limited partnership. 
  

 10 

 Partnership Counsel: As defined in Section 11.15. 
 Partnership Expenses: As defined in Section 6.2(a). 
 Partnership Minimum Gain: As defined in U.S. Treasury Regulations Section 1.704-2(b)(2) and 1.704-2(d). 
 Payment Date: As defined in Section 3.1(b)(i). 
 Payment Notice: As defined in Section 3.1(b)(ii).

 Percentage Interest: With respect to any Limited Partner and (a) any Investment (other than a Follow-On Investment) for which
a Payment Notice was not issued prior to the closing date of such Investment, the ratio of such Limited Partner’s Unpaid Capital Commitment to the Unpaid Capital Commitments of all Limited Partners as of such closing date; that such Percentage
Interest shall be subject to adjustment as set forth herein for any default (b) any Follow-On Investment, such Limited Partner’s Percentage Interest with respect to the relevant existing Investment; provided, that such Percentage
Interest shall be subject to adjustment as set forth herein for any default, and (c) any other Investment, the ratio of such Limited Partner’s Capital Contribution to that Investment to the total Capital Contributions of all Limited
Partners to that Investment; 
 Person: Any individual, partnership, corporation, limited liability company, unincorporated
organization or association, trust (including the trustees thereof, in their capacity as such) or other entity. 
 Portfolio
Company(ies): Means, with respect to any Investment, any Person that is the issuer of the securities that are the subject of such Investment. 
 Prime Rate: The rate of interest per annum publicly announced from time to time by JPMorgan Chase & Co. (or any successor thereto) as its prime rate in effect at its principal office in New York City. The Prime Rate is not
intended to be the lowest rate of interest charged by such bank in connection with extensions of credit to debtors. 
 Proceeding: Any
legal action, suit or proceeding by or before any court, arbitrator, governmental body or other agency. 
 Profit and Losses: For each
Fiscal Year or other period, the taxable income or loss of the Partnership, or particular items thereof, determined in accordance with the accounting method used by the Partnership for U.S. federal income tax purposes with the following adjustments:
(a) all items of income, gain, loss or deduction allocated other than pursuant to Section 10.2 and Section 10.3(g) shall not be taken into account in computing such taxable income or loss; (b) any income of the Partnership that
is exempt from U.S. federal income taxation and not otherwise taken into account in computing Profits and Losses shall be added to such taxable income or loss; (c) if the Carrying Value of any asset differs from its adjusted tax basis for U.S.
federal income tax purposes, any gain or loss resulting from a disposition of such asset shall be calculated with reference to such Carrying Value; (d) upon an adjustment to the Carrying Value of any asset, pursuant to the definition of
Carrying Value (other than an 

  

 11 

 
adjustment in respect of depreciation), the amount of the adjustment shall be included as gain or loss in computing such taxable income or loss; (e) if
the Carrying Value of any asset differs from its adjusted tax basis for U.S. federal income tax purposes the amount of depreciation, amortization or cost recovery deductions with respect to such asset for purposes of determining Profits and Losses
shall be an amount which bears the same ratio to such Carrying Value as the U.S. federal income tax depreciation, amortization or other cost recovery deductions bears to such adjusted tax basis (provided that if the U.S. federal income tax
depreciation, amortization or other cost recovery deduction is zero, the Operator may use any reasonable method for purposes of determining depreciation, amortization or other cost recovery deductions in calculating Profits and Losses); and
(f) except for items in (a) above, any expenditures of the Partnership not deductible in computing taxable income or loss, not properly capitalizable and not otherwise taken into account in computing Profits and Losses pursuant to this
definition shall be treated as deductible items. 
 Pro Rata Share: As defined in Section 3.1(b)(iii). 
 Public Records Act: As defined in Section 11.2(d). 
 Realized Capital and Costs: As defined in Section 3.3(a)(ii). 
 Realized Gain: As defined
in the definition of Unrecouped Losses on Realized Investments. 
 Realized Investment: As of any date, an Investment which has been
the subject of a Disposition on or prior to such date. 
 Realized Loss: As defined in the definition of Unrecouped Losses on Realized
Investments. 
 Required Interest: As defined in Section 11.4. 
 RMBS: Single family residential-mortgage backed securities or any other securities whose return is linked to a pool of indebtedness secured by
single family residential real estate. 
 Rules: As defined in Section 11.15. 
 Securities Act: The Securities Act of 1933, as amended. 
 Similar Law: Any federal, state, local, non–U.S. or other law or regulation that could cause the underlying assets of the Partnership to be treated as assets of the Limited Partner by virtue of its
Interest and thereby subject the Partnership and the General Partner (or other persons responsible for the investment and operation of the Partnership’s assets) to laws or regulations that are similar to the fiduciary responsibility or
prohibited transaction provisions contained in Title I of ERISA or Section 4975 of the Code. 
 Target Investments: As defined in
the Investment Guidelines attached hereto as Annex A. 
  

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 Tax Advances: As defined in Section 10.6(a). 
 Temporary Investments: Cash or cash equivalent investments having a credit rating no lower than “A-1” by Standard & Poor’s
Rating Services or “P-1” by Moody’s Investors Services, Inc. 
 Temporary Investment Income: Income of the Partnership
from sources other than Investments, net of Partnership Expenses and reserves therefor which are allocated to such income in accordance with Section 6.2(d) and (e). 
 Transfer Option: As defined in Section 8.2(c)(i) 
 Transfer Notice: As defined in
Section 8.2(c)(i). 
 Unpaid Capital Commitment: As to any Partner as of any date, an amount equal to: 
 (a) such Partner’s Capital Commitment, minus 
 (b) the aggregate amount of such Partner’s Capital Contributions made on or prior to such date (i) for Investments, (ii) to
repay any Indebtedness, to the extent that the General Partner has not given notice to the Limited Partners pursuant to clause (c) below and (iii) pursuant to Section 5.2(b), minus 
 (c) the amount of any outstanding Indebtedness of the Partnership incurred or assumed thereby as provided under Section 4.2(c) solely
to the extent the General Partner has notified the Limited Partners in writing, citing this clause (c), that it intends to repay such Indebtedness, if required, by a drawdown pursuant to Section 3.1(a)(iv), (v), (vi) or (vii), in each case
in respect of which such Partner would be required to make a Capital Contribution pursuant to Section 3.1(a)(iv), (v), (vi) or (vii), while such Indebtedness remains outstanding (it being understood that Unpaid Capital Commitments shall
not be deemed further reduced under this clause (c) to the extent Capital Contributions are requested and made pursuant to Sections 3.1(a)(iv), (v), (vi) or (vii) for the purpose of paying any such Indebtedness), minus

 (d) the excess, if any, of (i) the aggregate amount of such Partner’s Capital Contributions made on or prior to
such date for Organizational Expenses, Partnership Expenses and Management Fees or pursuant to Section 5.2(b) over (ii) the amount of all distributions other than those described in clause (e) below to such Partner made on or prior to
such date, plus 
 (e) with respect to such Partner as of such date, the amount of all Capital Contributions made by
such Partner for the acquisition of an Investment and returned to such Partner upon Disposition of such Investment during the Commitment Period, plus 
 (f) the amount of any Capital Contribution by a Partner which is returned to such Partner on or prior to such date in lieu of its
application toward an Investment pursuant to Section 3.1(f); 
  

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 provided, that (I) with respect to clause (c) above, to the extent any such Indebtedness creates an
obligation (whether or not such obligation is joint, several, joint and several, or otherwise) for the repayment thereof among the Partnership, JER Fund IV or JERIT pursuant to Section 4.6 the Unpaid Capital Commitment of a Partner shall only
be reduced by such Partner’s pro rata share of the aggregate obligations of the Partnership, JER Fund IV or JERIT, relating thereto; (II) to the extent the aggregate Capital Contributions made by a Partner with respect to such Indebtedness
(whether or not the obligation for such Indebtedness is joint, several, joint and several, or otherwise) at any time exceeds such Partner’s share of the Partnership’s obligation relating thereto, such Partner’s Unpaid Capital
Commitment shall be further reduced by the amount of such excess; and (III) the General Partner may not request additional Capital Contributions from a Limited Partner as provided above in excess of such Partner’s indirect share of the
Investment to which such obligation relates as compared to the indirect share of such Investment held by all of the Partners and the partners or other investors of JER Fund IV or JERIT, other than Defaulting Limited Partners and defaulting limited
partners or other investors in JER Fund IV or JERIT; provided, further, that at any time from and after the expiration or termination of the Commitment Period, the General Partner may reduce the Unpaid Capital Commitments of the
Limited Partners on a pro rata basis by any amount in its sole and absolute discretion. 
 Unrealized Investment: Any Investment that
has not yet been the subject of a Disposition. 
 Unrecouped Losses on Realized Investments: With respect to any Limited Partner as of
any date, an amount equal to (a) with respect to all Investments, which have been the subject of a Disposition where the Capital Contributions of such Limited Partner to each such Investment exceed the Investment Proceeds to such Limited
Partner in respect of each such Investment, the aggregate amount of such excess (a “Realized Loss”), reduced (but not below zero) by (b) with respect to all Investments, which have been the subject of a Disposition
subsequent to any Disposition referred to in the foregoing clause (a) where the Investment Proceeds to such Limited Partner in respect of each such Investment exceed the Capital Contributions of such Limited Partner to each such Investment, the
aggregate amount of such excess (a “Realized Gain”); provided, that for the avoidance of doubt, a Realized Gain shall not be applied in reduction against a Realized Loss occurring subsequent to such Realized Gain. 

ARTICLE II 
 General Provisions 
 2.1 Formation. The parties hereto continue a limited partnership formed on
November 28, 2007 pursuant to the Act. The rights and liabilities of the Partners shall be as provided in said Act, except as otherwise expressly provided herein. 
 2.2 Name. The name of the Partnership shall be “JER US Debt Co-Investment Vehicle, L.P.” The General Partner is authorized to make any variations in the Partnership’s name which the
General Partner may deem necessary or advisable; provided, that (a) such name shall contain the words “Limited Partnership” or the letters “L.P.” or the equivalent translation thereof, (b) such name
shall not contain the name of any Limited Partner without the consent of such Limited Partner and (c) the General Partner shall promptly give notice of any variation in the Partnership’s name to the Limited Partners. 
  

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 2.3 Organizational Certificates and Other Filings; Limitations on Conduct of
Business. If requested by the General Partner, the Limited Partners shall immediately execute all certificates and other documents consistent with the terms of this Agreement necessary for the General Partner to accomplish all filing, recording,
publishing and other acts as may be appropriate to comply with all requirements for (a) the formation and operation of an exempted limited partnership under the laws of the State of Delaware, (b) if the General Partner deems it advisable,
the operation of the Partnership as a limited partnership, or partnership in which the Limited Partners have limited liability, in all jurisdictions where the Partnership proposes to operate and (c) all other filings required to be made by the
Partnership. 
 2.4 Purpose. The purpose of the Partnership is to make investments in accordance with the Investment Guidelines
contained in Annex A and to engage in such other activities as are permitted hereby and are incidental or ancillary thereto as the General Partner shall deem necessary or advisable, all upon the terms and conditions set forth in this Agreement.

 2.5 Principal Office. The Partnership shall maintain its principal office at, and its affairs shall be conducted from,
1650 Tysons Boulevard, Suite 1600, McLean, Virginia 22102 or such place or places as the General Partner may, with notice to the Limited Partners, decide. 
 2.6 Registered Office and Registered Agent. The address of the Partnership’s registered office in the State of Delaware is 1209 Orange Street, Wilmington, County of New Castle, Delaware
19801. The name and address of the Partnership’s registered agent for service of process in the State of Delaware is CT Corporation System, 1209 Orange Street, Wilmington, County of New Castle, Delaware 19801. 
 2.7 Term. The Partnership commenced upon the filing for record of the Certificate of Limited Partnership in the office of the Secretary of State
of the State of Delaware and, unless earlier dissolved and terminated pursuant to Section 9.1, shall continue in business through the close of business on the fifth anniversary of the Closing date; provided, that the General Partner,
with the consent of CalPERS may extend the term of the Partnership for two successive one-year periods in order to effect an orderly dissolution and winding up of the Partnership. During the period of any such extension of the term of the
Partnership, the General Partner shall manage the affairs of the Partnership with a view toward effecting an orderly dissolution and winding up of the Partnership and, accordingly, shall not make any new Investments. Notwithstanding the dissolution
of the Partnership, the Partnership shall continue in existence as a separate legal entity until cancellation of the Certificate of Limited Partnership of the Partnership. 
 2.8 Fiscal Year. The fiscal year (“Fiscal Year”) of the Partnership shall be the calendar year or, in the case of the first
and last fiscal years of the Partnership, the fraction thereof commencing on the Closing date or ending on the date on which the winding up of the affairs of the Partnership is completed, as the case may be. The taxable year of the Partnership shall
be determined under Section 706 of the Code. The General Partner shall have the authority to change the ending date of the Fiscal Year if the General Partner shall determine in good faith that such change is necessary or appropriate,
provided, that the General Partner shall promptly give notice of any such change to the Limited Partners. 
  

 15 

 2.9 Withdrawal of Initial Limited Partner. Upon the admission of one or more
Limited Partners to the Partnership at the Closing, the Initial Limited Partner shall (a) receive a return of any capital contribution made by him to the Partnership, (b) withdraw as the Initial Limited Partner of the Partnership, and
(c) have no further right, interest or obligation of any kind whatsoever as a Partner in the Partnership. 
 ARTICLE III

 Capital Contributions; Distributions 
 3.1 Capital Contributions. (a) Capital Contributions. Each Limited Partner agrees to make contributions to the Partnership in cash from time to time, payable in United States dollars, in
installments as follows: 
 (i) With respect to any Capital Contribution for the making of Investments generally: At
any time and from time to time on or prior to the Expiration Date, each Limited Partner shall, on any Payment Date, contribute to the Partnership its respective Pro Rata Share of the aggregate amount to be contributed by the Limited Partners for
such Investment, but a Limited Partner in no event shall be required to make a Capital Contribution to the Partnership on any date in an amount greater than its Unpaid Capital Commitment as of such date. The amount which a Limited Partner is
required to contribute on any Payment Date shall be specified by the General Partner in a Payment Notice delivered to such Limited Partner in respect of such Payment Date, and the General Partner shall contribute to the Partnership on such Payment
Date an amount equal to its Pro Rata Share of all Capital Contributions to be made on such date by all Partners; 
 (ii)
With respect to any Capital Contribution for the making of a Follow-Up Investment: At any time and from time to time after the Expiration Date, each Limited Partner shall, on any Payment Date, contribute to the Partnership its Pro Rata Share
of the aggregate amount to be contributed by the Limited Partners for such Follow-Up Investment; provided, that a Limited Partner in no event shall be required to make a Capital Contribution to the Partnership on any date in an amount greater
than its Unpaid Capital Commitment as of such date. The amount which a Limited Partner is required to contribute on any Payment Date shall be specified by the General Partner in a Payment Notice delivered to such Limited Partner in respect of such
Payment Date, and the General Partner shall contribute to the Partnership on such Payment Date an amount equal to its Pro Rata Share of all Capital Contributions to be made on such date by all Partners; 
 (iii) With respect to any Capital Contribution for the making of a Follow-On Investment After the Expiration Date: At any time and
from time to time for a period of three years after the Expiration Date, each Limited Partner shall, on any Payment Date, contribute to the Partnership its pro rata share of the aggregate amount to be contributed 

  

 16 

 
by the Limited Partners for such Follow-On Investment (calculated on the basis of such Limited Partner’s Percentage Interest with respect to the
relevant existing Investment and determined in accordance with Section 3.1(f)) in an aggregate amount up to, but in any event no more than, 20% of the Partnership’s Capital Commitments; provided, that a Limited Partner in no event
shall be required to make a Capital Contribution to the Partnership on any date in an amount greater than its Unpaid Capital Commitment as of such date. The rationale for a Follow-On Investment and the amount which a Limited Partner is required to
contribute on any such Payment Date shall be specified by the General Partner in a Payment Notice delivered to such Limited Partner in respect of such Payment Date, and the General Partner shall contribute to the Partnership on such Payment Date an
amount equal to its Pro Rata Share of all Capital Contributions to be made on such date by all Partners; 
 (iv) With
respect to any Capital Contribution for the payment of Partnership Expenses: At any time and from time to time during the term of the Partnership on any Payment Date, each Limited Partner shall contribute to the Partnership its Pro Rata Share of
the aggregate amount to be contributed by all Limited Partners on such date for Partnership Expenses or to satisfy the Partnership’s obligation under any Indebtedness incurred to pay Partnership Expenses, but a Limited Partner in no event shall
be required to make a Capital Contribution to the Partnership on any date in an amount greater than its Unpaid Capital Commitment as of such date, and the General Partner shall contribute to the Partnership on such date an amount equal to its Pro
Rata Share of all Capital Contributions to be made on such date by all Partners; 
 (v) With respect to any Capital
Contributions for the repayment of Indebtedness: At any time and from time to time during the existence of the Partnership, on any Payment Date, each Limited Partner shall contribute to the Partnership its Pro Rata Share of the aggregate amount
to be contributed by all Limited Partners on such date to satisfy the Partnership’s or a Portfolio Company’s obligation under any Indebtedness, but a Limited Partner in no event shall be required to make a Capital Contribution to the
Partnership on any date in an amount greater than its Unpaid Capital Commitment as of such date; provided, that no Limited Partner shall be required to make such Capital Contributions after the Expiration Date in respect of Indebtedness
incurred for Investments unless such Indebtedness (or Indebtedness directly or indirectly refinanced by such Indebtedness) is outstanding as of the Expiration Date and such Limited Partner has received a notice on or prior to the Expiration Date
(citing this Section 3.1(a)(v)), stating that Capital Contributions may be required to satisfy the Partnership’s obligation under any such Indebtedness outstanding on the Expiration Date and specifying, to the best of the General
Partner’s knowledge, the amount of any Capital Contribution that may be so required. The amount which a Limited Partner is required to contribute on any Payment Date shall be specified by the General Partner in a Payment Notice delivered to
such Limited Partner in respect of such Payment Date, and the General Partner shall contribute to the Partnership on such Payment Date an amount equal to its Pro Rata Share of all Capital Contributions to be made on such date by all Partners;

 (vi) With respect to Capital Contributions for Organizational Expenses: At any time and from time to time during the
term of the Partnership, each Limited Partner shall 

  

 17 

 
contribute to the Partnership such Limited Partner’s Pro Rata Share of the aggregate amount to be paid by all Limited Partners on such date for the
Organizational Expenses (which aggregate amount shall equal the product of (A) one minus the General Partner’s Pro Rata Share and (B) the Partnership’s share of the amount of such Organizational Expenses), or to satisfy
the Partnership’s obligation under any Indebtedness incurred to pay Organizational Expenses; provided, that, if JERIT and JER Fund IV make a capital commitment to the General Partner rather than directly to the Partnership, they will
also bear their pro rata share of Organizational Expenses to the same extent as if they had made a direct Capital Commitment to the Partnership. A Payment Notice shall be delivered in respect of such contributions specifying the Payment Date
therefor; and 
 (vii) With respect to Capital Contributions for the Management Fee: On any Business Day falling on or
immediately after each Management Fee Payment Date, each Limited Partner shall contribute to the Partnership the installment of the Management Fee then due and owing applicable to such Limited Partner, as determined in accordance with
Section 6.1. A Payment Notice shall be delivered in respect of such contribution specifying such Business Day as the Payment Date therefor. 
 (b) Related Definitions. (i) A “Payment Date” shall mean a date on which Partners are required to make Capital Contributions to the Partnership, which date: 
 (A) shall be specified in a Payment Notice delivered to each Limited Partner from which a Capital Contribution is required on such date;
and 
 (B) shall be at least ten (10) Business Days after the date of delivery of a Payment Notice. 
 (ii) A “Payment Notice” shall mean a written notice requiring Capital Contributions to the Partnership, which notice
shall: 
 (A) specify the purpose for which the Capital Contributions are required to be made; 
 (B) in the case of a Payment Notice with respect to the anticipated making of an Investment, include: 
 (I) a brief description of the identity and nature of such Investment, the business to which it relates, and the type of interest being
purchased, except that the General Partner may exclude the specific identity thereof (but not the description of the nature of the Investment and the business to which it relates) if the General Partner determines in good faith that notifying the
Limited Partners of such identity would risk jeopardizing such Investment or the General Partner would breach a confidentiality obligation imposed on it with respect to such Investment; 
 (C) in the case of a Payment Notice with respect to any Capital Contribution required pursuant to Section 3.1(a)(v), indicate the
anticipated date of repayment or performance of the Indebtedness and the Investment to which such Indebtedness relates; and 
  

 18 

 (D) specify each Limited Partner’s Pro Rata Share of the Capital Contributions
required to be made by the Limited Partners and the method of calculation thereof. 
 (iii) A Limited Partner’s
“Pro Rata Share” of the aggregate Capital Contributions to be made by Limited Partners on any Payment Date for an Investment, for Partnership Expenses or for the satisfaction of the Partnership’s obligation under any
Indebtedness incurred for an Investment or to pay Partnership Expenses shall mean (a) with respect to any Investment for which a Payment Notice was not issued prior to the closing date of such Investment (including the repayment of Indebtedness
incurred for any such Investment), such Limited Partner’s Percentage Interest in such Investment and (b) with respect to any other Investment (including the repayment of Indebtedness incurred for any such other Investment) or any
Partnership Expense, the percentage that such Limited Partner’s Unpaid Capital Commitment as of such date represents of the aggregate Unpaid Capital Commitments as of such date of all Limited Partners from which a Capital Contribution for such
Investment, Partnership Expenses or Indebtedness is required on such date (in each case as determined in accordance with Section 3.1(f)). A Limited Partner’s “Pro Rata Share” of the aggregate Capital Contributions for
Organizational Expenses or the satisfaction of the Partnership’s obligation under any Indebtedness incurred to pay Organizational Expenses to be made by Limited Partners on any Payment Date shall mean the percentage that a Limited
Partner’s Capital Commitment as of such date represents of the aggregate Commitments of all Limited Partners as of such date (as determined in accordance with Section 3.1(f)). 
 (c) Capital Contributions shall be made by wire transfer of immediately available funds to the account specified in the related Payment Notice. Other
than expressly as set forth in this Agreement, (i) no Partner shall be entitled to any interest or compensation by reason of its Capital Contributions or by reason of serving as a Partner and (ii) no Partner shall be required to lend any
funds to the Partnership. 
 (d) The General Partner shall cause the books and records of the Partnership to be amended from time to time to
reflect the addresses of Partners and changes thereto and the transfer of Interests and changes in Capital Commitments which are accomplished in accordance with the provisions hereof. 
 (e) The General Partner shall cause the aggregate Co-Investment Commitment to equal $20 million. 
 (f) If the General Partner determines that a proposed Investment in respect of which Partners have made Capital Contributions will not be consummated
(e.g., because a definitive acquisition agreement relating thereto has been terminated), the General Partner shall, within forty-five (45) days after the applicable Payment Date, refund to the Partners which made such Capital Contributions the
amounts of such Capital Contributions unless such amounts are required for another Investment to be made within such 45-day period. If the 

  

 19 

 
General Partner determines that a proposed Investment in respect of which Partners have made Capital Contributions will not require the full amount of
Capital Contributions made therefor, the General Partner shall, within forty-five (45) days after the applicable Payment Date, refund to the Partners which made such Capital Contributions, pro rata to the amounts of such Capital
Contributions, the amount of such Capital Contributions which exceeds the portion required to consummate and capitalize such Investment, unless such amounts are required for another Investment to be made within such 45-day period. Any amount
refunded pursuant to this Section 3.1(f) within 45 days of the applicable Payment Date shall be treated for purposes of Section 3.3(a) as never having been contributed to the Partnership, and, for the avoidance of doubt, the preferred
return payable under Section 3.3(a)(i) shall be payable on a Capital Contribution from the earlier of the date such Capital Contribution is invested in a Portfolio Company or the 46th day following the applicable Payment Date for such Capital Contribution through the date of its return pursuant to this Section 3.1(f). 
 3.2 Distributions — General Principles. (a) Generally. Except as otherwise expressly provided in Article III, Article VIII or in
Article IX, no Partner shall have the right to withdraw from the Partnership or to receive any distribution or return of its Capital Contributions. Distributions of Partnership assets that are provided for in this Article III, Article VIII or in
Article IX shall be made only to persons who, according to the books and records of the Partnership, were the holders of record of Interests in the Partnership on the date determined by the General Partner as of which the Partners are entitled to
any such distributions. 
 (b) Distributions in Kind of Marketable Securities Upon CalPERS’ Consent. (i) Distributions prior to
the termination of the Partnership may only take the form of cash or, with the consent of CalPERS, Marketable Securities. Subject to the foregoing, distributions of Marketable Securities shall be made in the same proportions as would cash in an
amount equal to the Fair Market Value of the Marketable Securities being distributed (but may not otherwise be made in kind except in connection with the dissolution and winding up of the Partnership or a withdrawal of a Limited Partner pursuant to
Section 8.6); provided, that any distribution of Marketable Securities pursuant to this Article III shall be made in accordance with the following: 
 (A) the General Partner shall give at least ten (10) Business Days prior notice of any proposed distribution of Marketable Securities
pursuant to this Section 3.2(b) and the date of such proposed distribution; 
 (B) the General Partner shall not make any
distribution of Marketable Securities to any Limited Partner if the General Partner has been advised in writing by such Limited Partner that such distribution would result in, or be more likely than not to result in, a violation of applicable law,
rule or regulation. In the event the General Partner is so advised in writing, the Partnership as promptly as practicable shall dispose on behalf of such Limited Partner of all or any portion of such Marketable Securities that otherwise would have
been distributed to such Partner at such price and on such terms as the General Partner shall determine in good faith to be then achievable and to distribute to such Partner instead the proceeds from such disposition; 
  

 20 

 (C) any gain or loss upon the disposition of such Marketable Securities shall be
allocated pro rata only among those Partners electing to receive proceeds instead of Marketable Securities, and such Partners shall bear all of the expenses (including, without limitation, underwriting costs and brokerage commissions) of such
disposition. For purposes of maintaining Capital Accounts and determining Profits and Losses, Marketable Securities sold on behalf of a Limited Partner shall be deemed distributed to such Limited Partner immediately prior to such sale (and shall be
deemed to have a value equal to the cash realized from such sale) and resulting book gain or loss shall be allocated pro rata solely to such Limited Partners; 
 (D) any book gain or loss for Capital Account adjustment purposes upon the actual distribution in kind of Marketable Securities described
in this Section 3.2(b) shall be allocated pro rata only among those Partners receiving such distribution; 
 (E) the
calculation of the Carried Interest shall be based on the valuation of the Marketable Securities to be distributed in kind to the Limited Partners determined in accordance with Section 4.7; and 
 (F) the General Partner may request, but no Limited Partner shall be required to give, a proxy with respect to any Marketable Securities
distributed in kind; and 
 (G) the General Partner may reasonably require that as a condition to any Limited Partner
receiving a distribution in kind of Marketable Securities pursuant to this Section 3.2(b), such Limited Partner shall make any necessary or desirable representations, warranties and covenants as the General Partner shall reasonably determine.

 (ii) Except as provided in this Section 3.2(b) or Section 8.6, distributions consisting of both cash and
Marketable Securities shall be made, to the extent practicable, in equal proportions of cash and such Marketable Securities respectively, as to each Limited Partner receiving such distributions. 
 (iii) Except as otherwise provided in this Agreement, assets distributed in kind shall be deemed to have been sold for cash for their Fair
Market Value determined in accordance with Section 4.7. Upon the making of a distribution in kind, the Capital Accounts of the Partners receiving such distribution shall be reduced by the Fair Market Value of the property distributed and the
Capital Accounts of the Partners shall be adjusted to reflect gain or loss deemed to have been realized in respect of the deemed sale. 
 (c)
Timing and Manner of Distributions. Distributions of available cash shall be made at the times provided below: 
 (i)
Current Proceeds from an Investment shall be distributed at such times and intervals as the General Partner shall determine, but in no event later than forty-five (45) days following the end of the Fiscal Quarter in which such Current Proceeds
are received by the Partnership. 
  

 21 

 (ii) Disposition Proceeds from an Investment shall be distributed as soon as practicable
but in any event within thirty (30) days after the date such Disposition Proceeds are received by the Partnership. 
 (iii) Temporary Investment Income shall, unless otherwise applied to an Investment, be distributed on an annual basis, but in no event later than forty-five (45) days following the end of the Fiscal Year in which such Temporary
Investment Income is received by the Partnership, or more often in the discretion of the General Partner. 
 Such distributions shall be made by wire
transfer of immediately available funds to the account specified in writing by any Limited Partner to the General Partner. Distributions pursuant to clauses (i) or (iii) above shall not be required to be made more frequently than annually
unless the aggregate amount to be distributed equals or exceeds $1,000,000. In kind distributions shall be made in the discretion of the General Partner and subject to the provisions of Section 3.2(b). 
 (d) For all purposes of this Agreement, whenever a portion of an Investment (but not the entire Investment) is the subject of a Disposition, that portion
shall be treated as having been a separate Investment from the portion of the Investment that is retained by the Partnership, and prior distributions of Current Proceeds and Capital Contributions for the Investment shall be treated as having been
divided between the sold portion and the retained portion on a pro rata basis. 
 (e) For all purposes of this Agreement, whenever an
investment is made in the same type of security of, or other interest in, an entity or asset in which an Investment previously has been made, such subsequent investment shall be treated as a separate Investment from the Investment previously made,
and the Capital Contributions for, and Investment Proceeds and Carried Interest proceeds subsequently received from, such entity shall be divided between the prior Investment and the subsequent Investment based upon the relative interests acquired
by the Partnership in such prior and subsequent Investments. 
 (f) The amount of any taxes allocable to a Partner or withheld from receipts
of the Partnership (or any entity in which the Partnership invests that is treated as a flow-through entity for U.S. federal income tax purposes) from an Investment shall be deemed to have been distributed to such Partner as Current Proceeds or
Disposition Proceeds to the extent that the payment or withholding of such taxes reduced Current Proceeds or Disposition Proceeds, as the case may be, otherwise distributable to such Partner as provided herein; provided, that the General
Partner may deem taxes paid by or withheld from receipts of the Partnership (or any entity in which the Partnership invests that is treated as a flow-through entity for U.S. federal income tax purposes) allocable to a Limited Partner exempt from
U.S. federal income tax to have been distributed to such Limited Partner as described above only to the extent the General Partner reasonably determines that (i) such Limited Partner is liable for such tax under the laws of the jurisdiction
imposing such tax, (ii) the amount of such tax is determined with reference to the status of such Limited Partner or (iii) such Limited Partner incurs items of gross income taken into account for purposes of calculating unrelated business
taxable income as defined in Sections 512 and 514 of the Code relating to such Limited Partner’s Interest in the Partnership. 
  

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 (g) (i) Any amount otherwise distributable to a Limited Partner pursuant to Sections 3.2 and 3.3 may
be retained by the Partnership and used for any purpose otherwise permissible under this Agreement to the extent such retained amounts would have, if distributed, increased the Unpaid Capital Commitment of such Limited Partner in accordance with
clauses (e) and (f) of the definition of Unpaid Capital Commitment. For the avoidance of doubt, the foregoing shall not limit the General Partner’s authority to apply Disposition Proceeds, Current Proceeds and Temporary Investment
Income to the payment of Partnership Expenses and the repayment of Indebtedness or withhold amounts from distributions pursuant to Sections 6.2(d) and 6.2(e) hereof. 
 (ii) Other than amounts referred to in clause (i) of this Section 3.2(g) which would have increased the Unpaid Capital Commitment of a Limited Partner, any amount otherwise distributable to a Limited Partner
pursuant to Sections 3.2 and 3.3 may be retained by the Partnership and used for any purpose permissible under this Agreement to the extent that if such amounts had been distributed to the Limited Partner pursuant to Sections 3.2 and 3.3 and
immediately recontributed thereby as a Capital Contribution, such Limited Partner’s Unpaid Capital Commitment would have been reduced by such amounts (and therefore such amounts may not exceed such Limited Partner’s then Unpaid Capital
Commitment); provided, that the foregoing shall not limit the ability to pay Management Fees and Partnership Expenses and take reserves therefor in accordance with Sections 6.1(a) and 6.2(d) and (e). 
 (iii) Any amount retained pursuant to clauses (i) and (ii) of this Section 3.2(g) shall be treated as though such amount had been
distributed to the Limited Partner pursuant to Sections 3.2 and 3.3 and immediately recontributed thereby as a Capital Contribution as of the date of such distribution for all purposes hereof. 
 3.3 Amounts and Priority of Distributions. 
 (a) Distributions of Current Proceeds and Disposition Proceeds from Investments. Each distribution of Current Proceeds and Disposition Proceeds from an Investment (after making a payment or provision for Organizational Expenses,
Partnership Expenses and the Management Fee) shall initially be made to the Partners in proportion to each of their respective Percentage Interests with respect to such Investment. Notwithstanding the previous sentence, the share of each
distribution of Current Proceeds and Disposition Proceeds of each Limited Partner (other than an Excepted JER Investor) from an Investment shall be divided between such Limited Partner on the one hand and the General Partner on the other hand as
follows: [*] 
 (b) Distributions of Temporary Investment Income: Each distribution of Temporary Investment Income shall be divided
among all Partners (including the General Partner) pro rata in proportion to their respective proportionate interests in the Partnership property or funds that produced such Temporary Investment Income, as reasonably determined by the General
Partner. 
 (c) The “Net Loss from Writedowns” as of any date means, in respect of the Unrealized Investments for which
there are writedowns, the aggregate excess of the Capital 

  

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Contributions and allocated Partnership Indebtedness directly relating to such Unrealized Investments over their aggregate Fair Market Values as of such
date. 
 3.4 Escrow Account. (a) Establishment of Escrow Account. The Partnership shall establish an escrow account (the
“Escrow Account”), with a sub-account for each non-Defaulting Limited Partner which is not an Excepted JER Investor. Subject to Section 3.4(b) below, the General Partner shall be required upon its receipt of any Carried
Interest with respect to such Limited Partner to deposit into such Limited Partner’s sub-account in the Escrow Account an amount equal to 50% of the amount of such Carried Interest, in order to assure the availability of funds for the potential
obligation of the General Partner to refund amounts pursuant to Section 3.4(c) below. 
 (b) Permitted Withdrawals Out of the Escrow
Account.(i) All funds deposited in the Escrow Account shall remain in the Escrow Account and may not be withdrawn by the General Partner except as provided in this Section 3.4(b) and Section 8.3(h). 
 (ii) The General Partner may withdraw from the Escrow Account at any time and from time to time the amount of any interest or other earnings on the funds
in the Escrow Account. 
 (iii) At any time and from time to time following the expiration or termination of the Commitment Period, the
General Partner may withdraw from any Limited Partner’s sub-account in the Escrow Account any funds therein in excess of an amount equal to 20% of the sum of (A) the amount of such Limited Partner’s Unpaid Capital Commitment at such
time, (B) such Limited Partner’s Capital Contributions for Investments that have not been the subject of a Disposition as of such time, (C) such Limited Partner’s Capital Contributions for Organizational Expenses, Management Fees
and Partnership Expenses (or to satisfy the Partnership’s obligation under any Indebtedness incurred to pay any of the foregoing) that, in each case, have not been previously recouped by such Limited Partner and (D) such Limited
Partner’s pro rata share of the aggregate Unrecouped Losses on Realized Investments of Limited Partners other than Excepted JER Investors. 
 (c) Payment of Excess 20% Amount Out of Escrow Account. (i) If, following the dissolution, winding up and termination of the Partnership and the distribution of all or substantially all of the Partnership’s assets (the
date of such event being the “Final Clawback Determination Date”), distributions of Carried Interest to the General Partner have been made with respect to any non-Defaulting Limited Partner and the aggregate distributions of Carried
Interest to the General Partner with respect to any Limited Partner minus any Interim GP Clawback Amount with respect to such Limited Partner exceeds 20% of the sum of (A) an amount (positive or negative) equal to (I) the cumulative
distributions to such Limited Partner of Investment Proceeds over (II) the aggregate amount of Capital Contributions and returns of distributions pursuant to Section 5.2(b) made by such Limited Partner (such positive or negative amount being
the “Cumulative Net Distributions” with respect to such Limited Partner), and (B) the aggregate distributions of Carried Interest to the General Partner with respect to such Limited Partner minus any Interim GP Clawback
Amount with respect to such Limited Partner with respect to such Limited Partner, determined after giving effect to all transactions through the Final Clawback Determination Date, then the escrow agent shall return promptly to the 

  

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Partnership for distribution to such Limited Partner to the extent of the amount in such Limited Partner’s sub-account in the Escrow Account and without
prejudice to the General Partner’s further obligations under Section 9.4, an amount determined after giving effect to all transactions through the Final Clawback Determination Date equal to the Excess 20% Amount (as defined in the next
sentence) with respect to such Limited Partner. The “Excess 20% Amount” with respect to such Limited Partner shall equal an amount such that if such amount were distributed to such Limited Partner, the aggregate distributions of
Carried Interest to the General Partner with respect to such Limited Partner (after reduction for such amount) minus any Interim GP Clawback Amount with respect to such Limited Partner would equal 20% of the sum of (I) such Limited
Partner’s Cumulative Net Distributions (after increase for such amount) and (II) the aggregate distributions of Carried Interest to the General Partner with respect to such Limited Partner (after reduction for such amount) minus any
Interim GP Clawback Amount with respect to such Limited Partner. 
 (ii) Any amount remaining in any Limited Partner’s sub-account in
the Escrow Account after the payment to such Limited Partner of all amounts under this Section 3.4(c) shall be immediately released to the General Partner. 
 (d) For purposes of calculating distributions and maintaining Capital Accounts, amounts distributed by the Partnership and placed in escrow by the General Partner will be considered distributed to the General Partner
and amounts required to be returned to the Partnership shall be considered a contribution to capital by the General Partner. 
 (e) The funds
held in the Escrow Account shall be invested by the General Partner in Temporary Investments. 
 ARTICLE IV 
 The General Partner 
 4.1
Investment Guidelines. The Partnership shall make Investments in accordance with the Investment Guidelines set forth in Annex A, or as otherwise consented to by the General Partner and CalPERS. In addition, at such time as any funds of
the Partnership are not invested in Investments, distributed to the Partners or applied towards the expenses or Indebtedness of the Partnership, the Partnership may invest such funds in Temporary Investments. The foregoing provisions of this
Section 4.1 shall be subject to the good faith interpretation of the General Partner. 
 4.2 Powers of the
General Partner. (a) The management, operation and policy of the Partnership shall be vested exclusively in the General Partner, which shall have the power by itself and shall be authorized and empowered on behalf and in the name of the
Partnership to carry out any and all of the objects and purposes of the Partnership and to perform all acts and enter into and perform all contracts and other undertakings that it may in its sole discretion deem necessary or advisable or incidental
thereto, all in accordance with and subject to the other terms of this Agreement. 
  

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 (b) Without limiting the foregoing general powers and duties, the General Partner is hereby authorized
and empowered on behalf and in the name of the Partnership, or on its own behalf and in its own name, or through agents as may be appropriate, subject to the limitations contained elsewhere in this Agreement: 
 (i) to formulate the investment policy of the Partnership provided that in so doing the General Partner shall comply with the Investment
Guidelines of the Partnership as set out in Annex A; 
 (ii) to locate, identify, evaluate, research and negotiate investment
opportunities and to acquire, underwrite, hold, protect, enhance, improve, manage, let, monitor, sell, exchange, convert or otherwise dispose of Investments for the account of the Partnership and to enter into contracts, deeds, agreements and other
undertakings to acquire Investments on behalf of the Partnership; 
 (iii) to appoint a custodian to hold the assets of the
Partnership (where deemed appropriate by the General Partner) or to appoint such other custodians or trustees as are required to hold any of the assets of the Partnership and give good title thereto on realization; 
 (iv) to monitor and, where appropriate, to appoint executive and non-executive directors to the boards of Portfolio Companies; 

(v) to provide at its own expense office facilities and office and executive staff and office equipment to facilitate the carrying on
of the business of the Partnership; 
 (vi) to receive, on behalf of the Partnership, Capital Contributions and any other
payments pursuant to the terms of this Agreement made by Limited Partners and to receive Investment Proceeds arising from Investments; 
 (vii) to open, maintain and close bank accounts and custodian accounts for the Partnership and to draw checks and other orders for the payment of monies; 
 (viii) subject to Section 4.2(c), to incur or assume Indebtedness (or to cause a Portfolio Company to incur or assume Indebtedness),
or to give (or to cause a Portfolio Company to give) indemnities, covenants and undertakings in favor of third parties on behalf of the Partnership (or a Portfolio Company) in connection with or for the purposes of the acquisition, holding or
disposal of any Investment (including undertakings to make an Investment in the future) or in respect of the obligations of any Portfolio Company. The General Partner may make, issue, accept, endorse and execute promissory notes, drafts, bills of
exchange, guarantees and other instruments and evidences of Indebtedness, and secure the payment thereof by mortgage, charge, pledge or assignment of any interest in all or any part of the Partnership’s assets and/or, subject to
Section 4.2(c)(ii), the obligation of the Limited Partners to make Capital Contributions; 
 (ix) to make loans;
provided, that such loans shall only be made in connection with an Investment; 
  

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 (x) to disburse payments of Organizational Expenses and Partnership Expenses payable by
the Partnership, including the expenses of acquiring and disposing of Investments to the extent that such expenses have not been or shall not be paid by any other Person and to provide against present or future contemplated obligations and
contingencies; 
 (xi) to pay from the Partnership’s assets the Management Fee in accordance with Section 6.1;

 (xii) to commence, settle or defend any litigation relating to the Partnership or to any of the Partnership’s assets;

 (xiii) to enforce security and exercise liens, charges, seize collateral or pledged assets, appoint administrators,
liquidators, receivers and reinsurers and generally to act to protect the Partnership’s Investments; 
 (xiv) to hold the
Partnership’s assets in trust and to maintain the Partnership’s records and books of account at the Partnership’s principal place of business and to allow any Limited Partner or its representative access thereto for any proper purpose
in accordance with the confidentiality provisions hereof at any reasonable time during normal business hours for the purpose of inspecting or copying the same; 
 (xv) to make payments and distributions to the Partners in accordance with the terms of this Agreement; 
 (xvi) to prepare and furnish accounts, reports and valuations to the Partners in accordance with the provisions of this Agreement;

 (xvii) to admit substitute Limited Partners to the Partnership in accordance with the provisions of Article VIII;

 (xviii) to delegate to, or otherwise engage, employees, agents, valuers, surveyors, monitoring agents, lawyers,
accountants, custodians, nominees, brokers, investment and financial advisers and consultants and any other person including, without limitation, any Affiliate of the General Partner (provided that, apart from transactions the terms of which are
expressly contemplated or approved by the terms of this Agreement, any such engagement of an Affiliate shall be on arm’s length terms) as it may deem necessary or advisable in relation to the affairs of the Partnership to perform or assist in
the performance of all or any of the affairs of the Partnership set forth in this Section 4.2(b) and elsewhere herein and to authorize such delegate to act for and on behalf of the Partnership; 
 (xix) to invest the funds of the Partnership in Temporary Investments pending the completion of an Investment, and the making of
distributions in accordance with Sections 3.2 and 3.3; 
 (xx) to enter into hedging arrangements in relation to the
Partnership’s Investments in such form as the General Partner may determine provided that if such hedging arrangements take the form of borrowings such power shall be limited in accordance with Section 4.2(b)(ix); 
  

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 (xxi) generally (without prejudice to Article VII) to communicate with the Limited
Partners and to report to the Limited Partners at such times as it shall think fit and to represent the Partnership in all things; 
 (xxii) to pay or direct the Partnership to pay all taxes (including any interest, penalties or fines relating thereto) for which the General Partner, any Affiliate of the General Partner or the Partnership is liable on behalf of any Limited
Partner or the Partnership or has been assessed in the name of the General Partner, such Affiliate or the Partnership; 
 (xxiii) to prepare, or procure the preparation of, tax returns (if any) for the Partnership and provide such assistance as it considers reasonable to enable Limited Partners to claim any reliefs from taxation and to prepare, or procure the
preparation of, tax returns in respect of their profits from the Partnership; 
 (xxiv) to obtain insurance cover for its
partners, directors, officers, employees and for itself and the Partnership and any other Indemnified Party in respect of any liabilities of such persons arising out of Partnership activities and in respect of any contingent liabilities of the
Partnership; 
 (xxv) generally to do all other things on behalf of the Partnership as may in the General Partner’s
opinion be reasonably required in connection with or ancillary to the purposes of objectives of the Partnership as described herein; 
 (xxvi) to appoint a person to act as nominee or attorney on behalf of the Partnership to sign, seal, endorse or execute any document as it may deem necessary and/or incidental to the conduct of the business of the Partnership; 

(xxvii) to act as the “tax matters partner” under the Code and in any similar capacity under state, local or non-U.S. law;
and 
 (xxviii) to make, in its sole discretion, any and all elections for Federal, state, local and non-U.S. tax matters,
including any election to adjust the basis of Partnership property pursuant to Sections 734(b), 743(b) and 754 of the Code or comparable provisions of state, local or non-U.S. law. 
 (c) Borrowing and Guarantees. (i) The General Partner shall have the right, at its option, to cause the Partnership or a Portfolio Company to
incur or assume Indebtedness from any Person at any time and for any purpose including to cover Organizational Expenses, Partnership Expenses or Management Fees, make Investments, provide permanent financing or provide interim financing to the
extent necessary to consummate the purchase of Investments prior to completion of the permanent debt financing therefor or prior to the receipt of Capital Contributions; provided, that the average of the sum of the Indebtedness of the
Partnership and the Partnership’s pro rata share of Indebtedness of all Investment entities for the last six months of each year, beginning with the year commencing on January 1, 2008, shall not exceed the 

  

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average for such months of 80% of the Partnership’s pro rata share of the cost of the underlying assets acquired in connection with such Investments;
except that a breach of this Section 4.2(c)(i) shall not be deemed to have occurred solely by reason of the existence or incurrence of Indebtedness at the underlying asset level if the General Partner does not possess the power to control the
decision to assume or incur Indebtedness at such level and if the General Partner has used all commercially reasonable efforts to repay, retire or otherwise reduce any other Indebtedness for such Investments in order to comply with the foregoing 80%
restriction; provided, further, that no such 80% limitation shall be applicable during the 6 month period after the Closing date; and, provided, further, that, notwithstanding the immediately foregoing provisos, the
General Partner will use its good faith effort to cause the Partnership’s pro rata share of Indebtedness of all Investment entities for the last six months of each year, beginning with the year commencing on January 1, 2008, not to exceed
the average for such months of 75% of the lower of (i) the Partnership’s pro rata share of the cost of the underlying assets acquired in connection with such Investments and (ii) the fair market value of such underlying asset. For the
avoidance of doubt, neither (a) Indebtedness extended by the Partnership to any Portfolio Company nor (b) any Indebtedness related to CDO transactions shall be treated as Indebtedness for the foregoing purposes, and until the year
beginning with the year commencing on the second anniversary of the Closing date, Indebtedness incurred pursuant to an Investor Note Facility shall not be treated as Indebtedness for the foregoing purposes. The General Partner shall give the Limited
Partners prompt notice of any Indebtedness incurred by the Partnership which the General Partner intends to repay, if required, by a drawdown pursuant to Section 3.1(a)(iii), (iv), (v), (vi) or (vii), which notice shall include the General
Partner’s estimate of the amount of the Partnership’s potential liability thereunder and the final maturity thereof. 
 (ii) In
connection with any borrowings by the Partnership which are to be secured (directly or indirectly) by the obligation of the Partners to make Capital Contributions to the Partnership (an “Investor Note Facility”), the General Partner
shall be authorized to pledge, hypothecate, mortgage, assign, transfer or grant security interests in or other liens on (i) the General Partner’s Interests and in its obligations to make Capital Contributions to the Partnership,
(ii) the rights of the General Partner to call capital on behalf of the Partnership under this Agreement subject to the terms and conditions of this Agreement, and provided, that a Limited Partner shall not be obligated to fund a Capital
Contribution in the event the Limited Partner is not required to fund under the express terms of this Agreement, and (iii) any other assets, rights or remedies of the Partnership or of the General Partner hereunder, including without
limitation, the right to issue Payment Notices and to exercise remedies upon a default by a Limited Partner in the payment of its Capital Contributions and the right to receive Capital Contributions and other payments. To the extent that the
Partnership has outstanding obligations under an Investor Note Facility and the lender requires a capital call in respect of the Investor Note Facility, each Limited Partner shall be obligated to fund into the bank account of the Partnership any
remaining portion of its Unpaid Capital Commitment in accordance with the provisions of this Agreement that is called for purposes of repaying such Investor Note Facility without defense, counterclaim or offset of any kind, including any defense
arising under Section 365(c) of the U.S. Bankruptcy Code, provided, that such agreement to fund shall not act as a waiver by such Limited Partner of its right to assert independently any claim that the Limited Partner may have against
any other Partner or the Partnership. In the event that, as a result of any such transfer or grant of a security interest, a Limited Partner makes a payment in response 

  

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to a Payment Notice issued by a lender in respect of the Investor Note Facility, such payment shall be deemed to be a Capital Contribution of such Limited
Partner to the Partnership. In connection with a lender exercising its right to require a capital call in respect of the Investor Note Facility, it is agreed that such capital call shall be deemed to satisfy any requirement that it be made pro rata
among Limited Partners if the respective amounts called are in accordance with the percentages to be used for such purpose as most recently furnished by the Partnership to the lender. 
 (iii) Notwithstanding anything herein to the contrary, the General Partner shall have the right to agree with one or more lenders (i) to subordinate
payments to the Limited Partners hereunder to payments required under any Indebtedness and (ii) that, during the term of any Indebtedness, the Partnership will not initiate bankruptcy, insolvency, liquidation, reorganization, dissolution
proceedings or any analogous proceedings without the consent of the lenders. 
 4.3 Limitation on Liability. (a) The General
Partner shall be subject to all of the liabilities of a general partner under applicable law; provided, that, to the fullest extent permitted by law, none of the General Partner and its Affiliates, nor their respective partners, officers,
members, shareholders, directors and employees and any other person who serves at the request of the General Partner on behalf of the Partnership as an officer, director, partner, employee or agent of any other entity (each, an “Indemnified
Party”), shall be liable to the Partnership or to any Limited Partner for (i) any act performed or omission taken or suffered by such Indemnified Party in connection with the conduct of the affairs of the Partnership or otherwise in
connection with this Agreement or the matters contemplated herein, unless such act or omission resulted from fraud, willful misconduct, gross negligence, bad faith or an intentional and material breach of this Agreement or violation of applicable
U.S. federal securities laws by such Indemnified Party or (ii) any losses due to the negligence, dishonesty or bad faith of any broker or other agent of the Partnership unless such Indemnified Party was responsible for the selection or
monitoring of such broker or agent and acted in such capacity with gross negligence, in each case if such Indemnified Party acted in good faith and, as to matters on behalf of the Partnership, in a manner reasonably believed to be in, and as to
other matters, in a manner reasonably believed to be not opposed to, the best interests of the Partnership. 
 (b) To the fullest extent
permitted by law, to the extent that, at law or in equity or otherwise, the General Partner has duties (including fiduciary duties) and liabilities relating thereto to the Partnership or to another Partner, the General Partner acting pursuant to the
provisions of this Agreement shall not be liable to the Partnership or to any such other Partner for any action taken in good faith in reliance on the provisions of this Agreement. To the fullest extent permitted by law, the provisions of this
Agreement, to the extent that they expand or restrict the duties and liabilities of the General Partner otherwise existing at law or in equity or otherwise, are agreed by the Partners to modify to that extent such other duties and liabilities of the
General Partner. 
 (c) The General Partner may, in its discretion, cause the Partnership to purchase, at the Partnership’s expense,
insurance to insure the General Partner or any other Indemnified Party against liability for any breach of their fiduciary responsibilities. 
  

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 (d) The General Partner hereby undertakes that it shall at all times duly and punctually pay and
discharge its separate and private debts and engagements which arise outside of the scope of this Agreement whether present or future and keep the Partnership’s assets and the Limited Partners and their personal representatives, estates and
effects indemnified therefrom and from all liabilities, actions, proceedings, costs, claims and demands in respect thereof. 
 (e) Subject to
Section 11.12(b), the General Partner shall at all times act in good faith and in the best interests of the Limited Partners and the Partnership and, in managing the affairs of the Partnership and in its dealings with the Limited Partners,
shall be subject to: (a) a duty of loyalty, which requires the General Partner to carry out its responsibilities with loyalty, honesty, good faith and fairness toward the Partnership and the Limited Partners (it being understood that the duty
of loyalty is not intended to affect dealings between the General Partner and its Affiliates, on the one hand, and the Partnership, on the other hand, that are otherwise permitted hereunder or to require activities or transactions to be effected for
the Partnership’s account that are permitted to taken hereunder for account of the General Partner and its Affiliates or the account of another person), and (b) a duty of care, which requires the General Partner to discharge its duties
with the diligence, care and skill that that an ordinarily prudent institutional real estate investment manager in a like position pursuing similar superior risk-adjusted returns and assuming similar high risks would exercise under similar
circumstances. Notwithstanding the foregoing, no Indemnified Party shall be liable for a breach of the standard of conduct set forth in this Section 4.3(e), nor shall an Indemnified Party lose its right to indemnification pursuant to
Section 4.4 as a result of such a breach, nor shall such a breach constitute “Cause” hereunder, in each case to the extent that such Indemnified Party acted in a good faith belief that its conduct was consistent with such standard of
conduct. 
 (f) The General Partner may consult with legal counsel and accountants selected by it and any act or omission suffered or taken
by it on behalf of the Partnership or in furtherance of the interest of the Partnership in good faith reliance upon and in accordance with the advice of such counsel or accountants shall be full justification for any such act or omission, and the
General Party shall be fully protected in so acting or omitting to act, provided that such counsel or accountants, were selected with reasonable care. 
 4.4 Indemnification. (a) To the fullest extent permitted by law, the Partnership shall indemnify and save harmless each of the Indemnified Parties from and against any and all claims, liabilities, damages,
losses, costs and expenses (including amounts paid in satisfaction of judgments, in compromises and settlements, as fines and penalties and legal or other costs and reasonable expenses of investigating or defending against any claim or alleged
claim) of any nature whatsoever, known or unknown, liquidated or unliquidated (whether or not in connection with proceedings by or in the right of the Partnership or any of the Partners), that are incurred by any Indemnified Party in acting on
behalf of the Partnership or any alternative investment structure through which Investments are made or in furtherance of the interests of the Partnership or that otherwise arise out of or in connection with the affairs of the Partnership or any
alternative investment structure through which Investments are made, including acting as a director or the equivalent of any entity in which an Investment is made during the period of time in which the Partnership holds such Investment, or the
performance by such Indemnified Party of any of the General Partner’s responsibilities hereunder or otherwise in connection with the matters contemplated herein; provided, that: 
 (i) an Indemnified Party shall be entitled to indemnification hereunder only to the extent that (A) such Indemnified Party’s
conduct did not constitute fraud, willful misconduct, gross negligence, bad faith or an intentional and material breach of this Agreement or violation of applicable U.S. federal securities laws and (B) such an Indemnified Party acted in good
faith, and, as to matters on behalf of the Partnership, in a manner reasonably believed to be in, and, as to other matters, in a manner reasonably believed to be not opposed to, the best interests of the Partnership; 
  

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 (ii) the Partnership’s obligations hereunder shall not apply with respect to
economic losses or tax obligations incurred by the General Partner or any of its direct or indirect beneficial owners as a result of its owning an interest in the Partnership or in Investments; 
 (iii) no Limited Partner shall be responsible for claims, liabilities, damages, losses, costs and expenses arising solely out of disputes
between or among the Indemnified Parties; and 
 (iv) no Limited Partner shall be responsible for the Partnership’s
obligations pursuant to this Section 4.4(a) to the extent that the costs incurred in fulfilling such obligation relate to Investments in which such Limited Partner did not participate. 
 The satisfaction of any indemnification and any saving harmless pursuant to this Section 4.4(a) shall be from and limited to Partnership assets, and no Partner
shall have any personal liability on account thereof; provided, that each Limited Partner shall be obligated to return any amounts distributed to it, in order to fund any deficiency in the Partnership’s indemnity obligations hereunder to
the extent provided in Section 5.2(b). 
 (b) Other than with respect to expenses incurred by an Indemnified Party in connection with an
action by an Indemnified Party brought against other Indemnified Parties, expenses reasonably incurred by an Indemnified Party in defense or settlement of any claim that may be subject to a right of indemnification hereunder shall be advanced by the
Partnership prior to the final disposition thereof upon receipt of an undertaking by or on behalf of the Indemnified Party to repay such amount to the extent that it shall be determined ultimately that such Indemnified Party is not entitled to be
indemnified hereunder. No advances shall be made by the Partnership under this Section 4.4(b) without the prior written approval of the General Partner. 
 (c) The right of any Indemnified Party to the indemnification provided herein shall be cumulative of, and in addition to, any and all rights to which such Indemnified Party may otherwise be entitled by contract or as
a matter of law or equity and shall extend to such Indemnified Party’s successors, assigns and legal representatives. 
 (d) Any
Indemnified Party shall first seek recovery under any other indemnity or any insurance policies by which such Person is indemnified or covered, as the case may be, but only to the extent that the indemnitor with respect to such indemnity or the
insurer with respect to such insurance policy provides (or acknowledges its obligation to provide) such indemnity or 

  

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coverage on a timely basis, as the case may be, and, if such Indemnified Party is not the General Partner, such Person shall obtain the written consent of
the General Partner prior to entering into any compromise or settlement which would result in an obligation of the Partnership to indemnify such Person; and if liabilities arise out of the conduct of the affairs of the Partnership and any other
Person for which the Indemnified Party entitled to indemnification from the Partnership hereunder was then acting in a similar capacity, the amount of the indemnification provided by the Partnership shall be limited to the Partnership’s
proportionate share thereof as determined in good faith by the General Partner in light of its fiduciary duties to the Partnership and the Limited Partners. 
 4.5 General Partner as Limited Partner. The General Partner shall also be a Limited Partner to the extent that it acquires an Interest as a Limited Partner, and to such extent shall be
treated as a Limited Partner in all respects except that the General Partner in such capacity shall not be subject to the Carried Interest. Any Interest of a Limited Partner which is held by the General Partner or any of its Affiliates shall be
deemed to have been voted and/or abstained in the same manner and proportions as the aggregate Interests of the other Limited Partners are voted and/or abstained. 
 4.6 Other Activities. Exclusivity. (a) Except as provided herein, until the earlier of Full Investment or the expiration of the Commitment Period, the General Partner shall seek to pursue all investment
opportunities meeting the Investment Guidelines for the exclusive benefit of the Partnership; provided, that the foregoing shall not apply to investments the acquisition costs of which individually do not exceed $5,000,000. Notwithstanding
the foregoing, the General Partner may cause the Partnership to co-invest in any investment opportunity meeting the investment objectives of the (i) Partnership and (ii) JER Fund IV and/or JERIT, with such co-investment being allocated 55%
percent to the Partnership and 45% to JER Fund IV and/or JERIT; provided, that where the Partnership and JER Fund IV and/or JERIT invest in the same investment opportunity, JER Fund IV and/or JERIT shall, subject to tax, legal, regulatory,
accounting and other similar considerations, invest and divest at substantially the same time and on substantially the same terms and conditions as those on which the Partnership invests; provided, that the Partnership may separately dispose
of its pro rata share of such Investment without the consent of JER Fund IV and/or JERIT, as applicable; and, provided, further, that until four months after the Closing date all Target Investments shall be allocated 100% to the
Partnership. The General Partner hereby confirms that no allocation pursuant to the immediately preceding sentence shall result in CalPERS, through its Interest in the Partnership, indirectly owning less than 50% of any Investment. 
 (b) Notwithstanding the foregoing, JER Fund IV and JERIT may be allocated all or any portion of a Target Investment pursuant to the internal JER
allocation policy, if (i) the Partnership is otherwise restricted or precluded from pursuing such investment (including, as a result of the investment restrictions set forth in Annex A) or (ii) if the General Partner in good faith
determines not to acquire the Partnership’s share of such Target Investment; provided, that the General Partner shall inform CalPERS of any Target Investment that is allocated to JER Fund IV or JERIT pursuant to this Section 4.6(b);
and, provided, further, that the General Partner shall at the same time provide CalPERS with a copy of the internal JER memo setting forth the basis for the allocation in accordance with JER’s internal allocation policy. In
addition to the above and in accordance with clauses (i) and (ii) of the immediately 

  

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preceding sentence, the General Partner may offer all or any portion of a Target Investment to unaffiliated third parties, including as co-investments with
the Partnership. 
 (c) Certain Time Commitments. The General Partner shall require the Credit Team (or any Approved Replacement of a
member thereof) to dedicate such time to the Partnership as may be reasonably necessary to manage the affairs of the Partnership. The General Partner shall inform CalPERS if any member of the Credit Team ceases to be employed by JER and its
Affiliates. The General Partner and the Credit Team will comply with the Credit Team Dedication Plan attached hereto as Exhibit I. 
 (d) Transactions with Affiliates on Arm’s-Length Terms. Apart from transactions the terms of which are expressly contemplated or approved by the terms hereof, the General Partner, JER and its Affiliates shall not engage in any
transaction with the Partnership or any entity in which an Investment has been made unless the terms of the transaction are on terms which are no less favorable to the Partnership or such entity than would be obtained in a transaction with an
unaffiliated party. 
 (e) Except as provided in Sections 4.6(a)-(d) above, this Agreement shall not be construed in any manner to
preclude JER and the General Partner or any of their Affiliates from engaging in any activity whatsoever permitted by applicable law. 
 4.7
Valuation. (a) All determinations of Fair Market Value to be made hereunder shall be made pursuant to the terms of this Section 4.7. For all purposes of this Agreement, all determinations of Fair Market Value which have been made in
accordance with the terms of this Section 4.7 shall be final and conclusive on the Partnership and all Partners, their successors and assigns. 
 (b) The Fair Market Value of securities which are Marketable Securities shall equal (i) in the case of securities which are primarily traded on a securities exchange, the average of their last sale prices on such securities exchange on
each trading day during the ten trading day period ending immediately prior to the date of the determination, or if no sales occurred on any such day, the closing “bid” price on such day, (ii) if the principal market for such
securities is, or is deemed to be, in the over-the-counter market, the average of their closing sale prices on each trading day during the ten trading day period ending immediately prior to the date of the determination, as published by the National
Association of Securities Dealers Automated Quotation System or similar organization, or if such price is not so published on any such day, the closing “bid” price, if available, on any such day, in each case as reasonably determined by
the General Partner based upon prices obtained from any third party reputable pricing service, broker or dealer, and (iii) if such securities are traded on PORTAL, the Fair Market Value of such securities by security as reasonably determined by
the General Partner based upon third party bid pricing information. The General Partner shall disclose to CalPERS the party(ies) from which it obtained the prices referenced in the foregoing clauses (ii) and (iii). 
 (c) The Fair Market Value of any Investments or of property received in exchange for any Investments which are not Marketable Securities shall be
calculated not less than quarterly and shall initially be determined by the General Partner, who shall promptly supply CalPERS with such valuations and the General Partner’s basis therefor. If CalPERS 

  

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objects in writing to any such valuation (which objection must be within 30 days of any notice of such valuation), and the General Partner and CalPERS are
unable to agree upon a mutually acceptable valuation within 30 days after such objection is made, the General Partner shall (at the Partnership’s expense) cause an independent, or other valuation expert mutually acceptable to the General
Partner and CalPERS to make a valuation, and such appraiser’s or expert’s determination of such valuation shall be binding on all parties. 
 (d) Notwithstanding any provision of this Agreement to the contrary, for purposes of determining the Appraised Value With Carry or the Appraised Value Without Carry of any Limited Partner’s Interest, Investments
which are not Marketable Securities shall, unless the General Partner and CalPERS otherwise agree, be valued at the Partnership’s expense by an independent valuation expert mutually acceptable to the General Partner and CalPERS, and such
expert’s determination shall be binding on all parties. In addition, in connection with the removal of the General Partner pursuant to Section 8.1(d), the General Partner may elect to have the Fair Market Value of its entire Interest
(inclusive of any potential Carried Interest) determined at the Partnership’s expense by an independent valuation expert mutually acceptable to CalPERS and the General Partner, and such expert’s determination shall be binding on all
parties. 
 (e) In connection with the determination of the Appraised Value With Carry or the Appraised Value Without Carry, the General
Partner shall provide CalPERS with a detailed report showing the calculations, on an asset-by-asset basis, undertaken in determining the Appraised Value With Carry or the Appraised Value Without Carry, as applicable. 
 4.8 Miscellaneous Covenants. (a) The General Partner will not admit any entity or Person other than CalPERS, JERIT, JER Fund IV or any other
subsidiary that is wholly owned by JERIT and/or JER Fund IV as a Limited Partner without the prior consent of CalPERS; provided, that any such admission shall not result in an increase in commitments to the Partnership. 
 (b) The General Partner shall not make, or cause to be made, an election to treat the Partnership as an association taxable as a corporation for U.S.
federal income tax purposes. 
 ARTICLE V 
 The Limited Partners 
 5.1 Management. (a) Except as expressly provided in this Agreement, no
Limited Partner shall take part in or have the right or power to participate in the management, affairs or conduct of the business of the Partnership, nor shall any Limited Partner have the power to sign for or bind the Partnership. To the fullest
extent permitted by law, the exercise by any Limited Partner of any right conferred herein shall not be construed to constitute participation by such Limited Partner in the management of the business of the Partnership so as to make such Limited
Partner liable as a general partner under the Act for any of the debts and obligations of the Partnership for purposes of the Act. To the fullest extent permitted by law, Limited Partners as such shall owe no fiduciary duties to the General Partner
nor to any other 

  

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Limited Partner with respect to the Partnership; provided, that notwithstanding the foregoing, Limited Partners shall continue to be subject to the
duties and obligations expressly set forth under this Agreement. 
 (b) Any Limited Partner may, upon notice to the General Partner, elect to
hold all or any fraction of such Limited Partner’s Interest as a non-voting Interest, in which case such Limited Partner shall not be entitled to participate in any consent of the Limited Partners with respect to the portion of its Interest
which is held as a non-voting Interest (and such non-voting Interest shall not be counted in determining the giving or withholding of any such consent). Except as provided in this Section 5.1, an Interest held as a non-voting Interest shall be
identical in all regards to all other Interests held by Limited Partners. Any such election shall be irrevocable and shall bind the assignees of such Limited Partner’s Interest. 
 5.2 Liabilities of the Limited Partners. (a) Except as provided by the Act or other applicable law and subject to the
obligation to make Capital Contributions pursuant to Article III, to indemnify the Partnership and the other Partners as provided in Section 10.6, to return distributions as provided in Section 5.2(b) and to make payments in respect of the
Final Clawback Amount under Section 9.4 (in the case of the General Partner), no Limited Partner shall have any personal liability whatsoever in its capacity as a Limited Partner, whether to the Partnership, to any of the Partners, or to the
creditors of the Partnership, for the debts, liabilities, contracts, or other obligations of the Partnership or for any losses of the Partnership. 
 (b) Except as required by the Act or other applicable law or as expressly described herein, no Limited Partner shall be required to repay to the Partnership, any Partner or any creditor of the Partnership all or any part of the
distributions made to such Limited Partner pursuant to Article III hereof; provided, that, to the maximum extent permitted by law and subject to the limitations set forth in Section 5.2(c) below, each Limited Partner (including any
former Limited Partner) may be required to return distributions made to such Limited Partner or former Limited Partner for the purpose of meeting such Limited Partner’s share of the Partnership’s indemnity obligations under
Section 4.4, in an amount up to, but in no event in excess of, the aggregate amount of distributions actually received by such Limited Partner from the Partnership. However, if, notwithstanding the terms of this Agreement, it is determined
under applicable law that any Limited Partner has received a distribution which is required to be returned to or for the account of the Partnership, any other Partner or creditors of the Partnership, then the obligation under applicable law of any
Limited Partner to return all or any part of a distribution made to such Limited Partner shall be the obligation of such Limited Partner and not of any other Limited Partner. Any amount returned by a Limited Partner pursuant to this
Section 5.2(b) shall be treated as a Capital Contribution to the Partnership. A Limited Partner’s share of the total give-back obligation under this Section 5.2(b) will be based on the amount of distributions received by such Limited
Partner arising out of the Investment giving rise to the Partnership’s indemnity obligations under Section 4.4; provided, that to the extent such indemnity obligations are not related to a particular Investment, or exceed the amount
of distributions received by such Limited Partner arising out of an Investment, then amounts required to be returned under this Section 5.2(b) will be funded out of distributions generally. Unless otherwise approved by CalPERS, the General
Partner shall treat all Limited Partners on the same basis in respect of the General Partner’s efforts in collecting any amounts owing under this Section 5.2(b). 
  

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 (c) Determination of Each Partner’s Share of Clawback. (i) Investment-Related Clawback
Amounts. Subject to the restrictions contained in paragraph (b) above and paragraph (d) below, (A) if an indemnification obligation is related to the acquisition, holding or Disposition of an Investment (an
“Investment Related Clawback Amount”), each Partner (including any former Partner) having an interest in such Investment shall be obligated to contribute an amount equal to the product of such Partner’s Percentage Interest in
such Investment and the lesser of (I) the aggregate Investment Proceeds distributed with respect to such Investment and (II) such Investment Related Clawback Amount and (B) to the extent that such Investment Related Clawback Amount exceeds
the aggregate Investment Proceeds generated by such Investment, each Partner (including any former Partner) shall be obligated to contribute an additional amount equal to the product of (I) the percentage that such Partner’s Capital
Commitment represents of the total Capital Commitments of the Partners and (II) the amount of such excess. Notwithstanding the preceding sentence, to the extent that distributions of Carried Interest in respect of any Limited Partner have been made
to the General Partner and have not already been repaid pursuant to this Section 5.2(c), such Limited Partner’s share of such Investment Related Clawback Amount shall be reduced, and the General Partner’s share of such Investment
Related Clawback Amount shall be increased, by an amount (the “Investment Related Interim GP Clawback Amount”) equal to the lesser of (x) the amount of such Carried Interest distributions and (y) 20% of such Limited
Partner’s share of such Investment Related Clawback Amount. 
 (ii) Other Clawback Amounts. Subject to the
restrictions contained in paragraph (b) above and paragraph (d) below, if an indemnification obligation is unrelated to the acquisition, holding or Disposition of an Investment (an “Other Clawback Amount”), each Partner
(or former Partner) shall be obligated to contribute an amount equal to the product of (A) the percentage that such Partner’s Capital Commitment represents of the total Capital Commitments of the Partners and (B) such Other Clawback
Amount. Notwithstanding the preceding sentence, to the extent that distributions of Carried Interest in respect of any Limited Partner have been made to the General Partner and have not already been repaid pursuant to this Section 5.2(c), such
Limited Partner’s share of such Other Clawback Amount shall be reduced, and the General Partner’s share of such Other Clawback Amount shall be increased, by an amount (the “Other Interim GP Clawback Amount”) equal to the
lesser of (x) the amount of such Carried Interest distributions and (y) 20% of such Limited Partner’s share of such Other Clawback Amount. 
 (d) Restrictions on LP Clawback. The obligation of a Limited Partner to return distributions made to such Limited Partner for the purpose of meeting the Partnership’s indemnity obligations under
Section 4.4 shall be subject to the following limitations: 
 (i) no Limited Partner shall be required to return any
distribution after the second anniversary of the date of such distribution; provided, that if at the end of such period, there are any Proceedings then pending or threatened or any other liability (whether contingent or otherwise) or claim
then outstanding, the General Partner shall so notify the Limited Partners at such time or of such liabilities and claims and the obligation of the Limited Partners to return any distribution for the purpose of meeting the Partnership’s
indemnity obligations under Section 4.4 shall survive with respect to each such 

  

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Proceeding, liability and claim set forth in such notice (or any related Proceeding, liability or claim based upon the same or a similar claim) until the
date that such Proceeding, liability or claim is ultimately resolved and satisfied; and provided, further, that the provisions of this clause (i) shall not affect any independent obligations of the Limited Partners under
applicable law to return distributions; 
 (ii) if any Limited Partner is required to return a distribution after the Final
Clawback Determination Date, such Limited Partner may set off against the amount required to be returned under this Section 5.2 an amount equal to the lesser of: 
 (A) the amount of distributions of Carried Interest in respect of such Limited Partner that have been made to the General Partner and have
not already been repaid pursuant to Section 5.2(c) or Section 9.4, provided, that no such setoff shall be made to the extent that the amount of such setoff and the Final Clawback Amount exceed the aggregate distributions of Carried
Interest to the General Partner with respect to such Limited Partner minus any Interim GP Clawback Amount with respect to such Limited Partner and 
 (B) 20% of such Limited Partner’s share of such returned distribution, and the General Partner shall provide such information as such Limited Partner may reasonably require in order to determine the amount of
such set-off; and 
 (iii) the aggregate amount of distributions which a Limited Partner (other than the General Partner in
respect of the return of its Carried Interest) may be required to return hereunder shall not exceed an amount equal to 25% of such Limited Partner’s Capital Commitment. 
 (e) In the case of any Limited Partner which is an agency or instrumentality of a state, if a provision of this Agreement is inconsistent with
limitations under the laws of such state on such Limited Partner’s power or authority to make indemnity payments, then such Limited Partner and the General Partner shall enter into alternative arrangements consistent with such limitations
regarding such provision so that the economic benefits of the Partnership to such Limited Partner are not materially more favorable to such Limited Partner than the economic benefits received or to be received by Limited Partners generally (as
determined by the General Partner in good faith). 
 5.3 Limited Partners’ Outside Activities. (a) Subject to Section 4.6
with respect to Limited Partners that are affiliated with the General Partner and to the use of information in a manner compliant with a Limited Partner’s obligations under Section 11.2, a Limited Partner shall be entitled to and may have
business interests and engage in activities in addition to those relating to the Partnership, including business interests and activities in direct competition with the Partnership and the entities in which the Partnership invests and may engage in
transactions with, and provide services to, the Partnership or any such entity. Neither the Partnership, any other Partner nor any other Person shall have any rights by virtue of its participation in the Partnership in any business ventures of any
Limited Partner. 
  

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 (b) The General Partner may offer co-investment opportunities to JERIT and JER Fund IV in a manner
consistent with Section 4.6(d). 
 (c) The General Partner or one of its Affiliates may make an investment in any vehicle formed for a
co-investment opportunity to the extent it is advised by counsel that such investment is desirable for tax purposes. The General Partner or one of its Affiliates may agree to serve as the general partner or similar managing fiduciary of any vehicle
formed for a co-investment opportunity. 
 5.4 Certain Rights of CalPERS. (a) Following the Lock-Up Period, CalPERS shall have the
right, at any time and from time to time, by giving notice to the General Partner, to request that the Partnership disposes of an Investment. CalPERS shall specify the Investment to be sold in such notice. The General Partner shall use its good
faith efforts to complete an orderly sale of the subject Investment within a reasonable time, taking into account prevailing market conditions and other factors that the General Partner may reasonably determine, consistent with obtaining the
reasonable market value for such Investment. Notwithstanding the foregoing, the General Partner shall not be obligated to use its good faith efforts to sell an Investment upon CalPERS’ request pursuant to this Section 5.4(a), if
(i) such a sale could result in the violation of or constitute a default under any agreement to which the Partnership and its Affiliates are subject or (ii) such Investment has been contributed, transferred or sold to a CDO. 
 (b) Without the consent of CalPERS, the General Partner and the Partnership shall not: 
 (i) issue a Payment Notice requiring a Capital Contribution for an amount in excess of CalPERS’ Unpaid Capital Commitment;

 (ii) except as expressly set forth herein, distribute any Investment Proceeds in a manner other than as set forth in
Section 3.3; 
 (iii) acquire an Investment that is inconsistent with the Investment Guidelines set forth in Annex A;

 (iv) do any act in contravention of this Agreement or the Certificate of Limited Partnership or use any Partnership
property for any purpose other than a purpose explicitly set forth in this Agreement ; 
 (v) except as contemplated herein,
enter into any contract or transaction between the Partnership and any Person who is an Affiliate of the General Partner or JER or in which the General Partner or JER has a financial interest; 
 (vi) in its capacity as the “tax matters partner”, take any action that would result in a material adverse effect on the
Partnership, CalPERS or the Partnership’s assets or operations (including the settlement of any tax audit or judicial review); provided, that, CalPERS shall not unreasonably withhold its consent if the General Partner reasonably
demonstrates that any actions contemplated in this clause (vi) are in the best interest of the Partnership and the Partners. For the avoidance of doubt, it shall not be unreasonable 

  

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for CalPERS to withhold its consent if CalPERS reasonably determines that any action proposed by the General Partner would result in an adverse effect on
CalPERS; or 
 (vii) except (a) on the advice of counsel, as required by law, regulation or legal process, (b) to
financing parties, counterparties, co-investors, joint venturers or sellers to or in respect of the Partnership or any Investment, if the General Partner determines in good faith that such disclosure is in the best interests of the Partnership in
connection with its business or affairs or (c) to the other Limited Partners in the ordinary course of the Partnership’s business, neither the General Partner nor any of its Affiliates nor the Partnership shall disclose any information
relating to CalPERS, including CalPERS’ name, or other identifying information, or CalPERS’ address, in written materials disseminated to third parties, and shall not otherwise disclose, either orally or in writing, any relationship with
CalPERS using CalPERS’ name to persons or entities which are not agents or representatives of the Partnership (including attorneys or accountants thereof), for any reason (other than as set forth above), without prior written permission of
CalPERS. 
 (c) The General Partner hereby agrees that qualified, senior staff counsel regularly employed by CalPERS (or qualified outside
counsel selected and monitored by such senior staff counsel) shall be acceptable legal counsel for purposes of any opinions of counsel required of CalPERS as a Limited Partner that may be or is required to be rendered by a Limited Partner under this
Agreement. 
 (d) The General Partner acknowledges and agrees that CalPERS reserves all immunities defenses, rights or actions arising out of
its sovereign status or under the Eleventh Amendment to the United States Constitution, and no waiver of any such immunities, defenses, rights or actions shall be implied or otherwise deemed to exist by reason of its execution of this Agreement or
any agreement related thereto, by any express or implied provision thereof or by any actions or omissions to act by CalPERS or any of CalPERS’ representatives or agents, whether taken pursuant to or prior to CalPERS’ execution of this
Agreement or of any agreement related thereto. Notwithstanding the foregoing, CalPERS hereby acknowledges that the foregoing does not limit the validity and legally binding nature of the contractual obligations of CalPERS hereunder or under any
other agreement related hereto. 
 (e) The General Partner hereby agrees to meet with representatives of CalPERS to discuss the activities of
the Partnership (i) on an annual basis at such time as may be mutually agreed upon by the General Partner and CalPERS and (ii) at such other times as may be reasonably requested by CalPERS. Such meetings shall be held at the
Partnership’s office or such other location mutually agreed upon by the General Partner and CalPERS. 
 ARTICLE VI 
 Expenses and Fees 
 6.1
Management Fees. (a) The Management Fee will commence accruing as of the date of the Closing. CalPERS shall make a Capital Contribution to the General Partner of the 
  

 40 

 
fee applicable to such Limited Partner (the “Management Fee”) described below. The Management Fee shall be paid quarterly in arrears in the
manner and on the dates set forth in Section 3.1. The Management Fee may also be paid out of the CalPERS’ share of Investment Proceeds and the General Partner may cause the Partnership to borrow funds to pay the Management Fee. The
Management Fee on any date shall be an amount equal to the product of (I) 1.5% per annum and (II) the sum of (A) CalPERS’ aggregate Capital Contributions for Investments minus (B) Capital Contributions for Investments
that have been the subject of a Disposition. 
 (b) The Management Fee for any Management Fee period of the Partnership shall be pro-rated
for the number of days in such period. 
 6.2 Partnership Expenses. (a) The Partnership shall bear and be charged with the following
costs and expenses of the Partnership (and shall promptly reimburse the General Partner or its Affiliates, as the case may be, to the extent that any of such costs and expenses are paid by such entities) (the “Partnership
Expenses”): 
 (i) fees and expenses for attorneys, accountants and other professionals to the extent that they
relate to an Investment or otherwise to the business of the Partnership; 
 (ii) all costs and expenses, if any, incurred in
diligencing, acquiring, developing, negotiating, structuring, financing and disposing of actual Investments, including indemnification costs to purchasers and sellers of Investments and other parties, costs for financing, legal, accounting, advisory
and consulting services, duplicating, postage, delivery, lodging, travel, long distance telephone, appraisal, engineering and environmental services, and property costs in connection therewith (to the extent not subject to any reimbursement of such
costs and expenses by entities in which the Partnership invests or other third parties); 
 (iii) to the extent the General
Partner and its Affiliates are not reimbursed by an entity in which the Partnership has invested or proposes to invest or other third parties, (A) Broken Deal Expenses and (B) any deposits or down payments of cash or other property
(whether made before or after the date hereof) that are forfeited in connection with a proposed Investment that is not ultimately made; 
 (iv) sales, leasing and brokerage commissions, development fees, loan servicing fees, custodial expenses and other investment costs incurred in connection with Investments; 
 (v) interest on and fees and expenses arising out of all borrowings made by the Partnership, including the arranging thereof; 

(vi) the costs of any litigation, directors and officers liability insurance or other insurance and indemnification or extraordinary
expense or liability relating to the affairs of the Partnership; 
 (vii) expenses of liquidating the Partnership; 

 

 41 

 (viii) any taxes, fees or other governmental charges levied against the Partnership and
all expenses incurred in connection with any tax audit, investigation, settlement or review of the Partnership; 
 (ix)
expenses incurred in connection with the operation of the Escrow Account; and 
 (x) any other expenses incurred in relation
to the administration of the Partnership. 
 (b) The Partnership shall also reimburse Affiliates of the General Partner at competitive market
rates to the extent such Affiliates provide any of the services described in Section 6.2(a) which would otherwise be provided by an unrelated third party; provided, that prior to Affiliates of the General Partner receiving any
reimbursements for services provided as described in Section 6.2(a), the General Partner shall provide CalPERS with the statement of an independent third party providing that such reimbursements are equal to or lower than the fees charged by
unrelated third parties for the same services. 
 (c) The Partnership or any Portfolio Company may appoint JER or one of its Affiliates as
the manager of any CDO to which Investments of the Partnership are contributed, sold or transferred and JER or its Affiliate shall be entitled to receive fees and reimbursements for such services; provided that fees and reimbursements are no
greater than those that would be paid to unaffiliated third parties performing substantially similar services; provided, further, that prior to JER or its Affiliate receiving any fees and reimbursements as manager of a CDO, the General
Partner shall provide CalPERS with the statement of an independent third party providing that such fees and reimbursements are equal to or lower than the fees charged by unaffiliated third parties for the same services. CalPERS acknowledges that
whenever the Partnership acquires (i) a controlling interest in the subordinate controlling class of a CMBS securitization or (ii) B-Notes or Mezzanine Loans relating to a securitization, JER or one of its Affiliates may be appointed as
the special servicer for such securitization and receive fees for such services. The General Partner, JER and or their Affiliates may earn fees from unaffiliated third parties at competitive market rates for services provided to such unaffiliated
third parties who co-invest with the Partnership pursuant to Section 4.6(b). 
 (d) Partnership Expenses and the repayment of any
Indebtedness may be allocated against items of Disposition Proceeds, Current Proceeds and Temporary Investment Income in a manner reasonably determined by the General Partner. Partners may be required to make Capital Contributions to the extent of
their Unpaid Capital Commitments for the payment of such Partnership Expenses to the extent the Partnership does not have sufficient funds to pay such expenses. 
 (e) The General Partner may withhold on a pro rata basis from any distributions amounts necessary to create, in its good faith discretion, appropriate reserves for expenses and liabilities (including Management
Fees, Partnership Expenses, Indebtedness and Organizational Expenses), contingent or otherwise, of the Partnership as well as for any required tax withholdings. 
  

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 (f) Any amounts paid by the Partnership for or resulting from any instrument or other arrangement
designed to hedge or reduce one or more risks associated with an Investment shall be considered a Partnership Expense relating to such Investment. Any distributions resulting from any such arrangements shall be treated as Current Proceeds from such
Investment. 
 (g) The Partnership may invest in or enter into short sales and other derivative contracts or instruments if such sales,
contracts or instruments are bona fide hedging transactions in connection with the acquisition, holding or disposition of Investments. Any amounts paid by the Partnership for or resulting from any such sales, contracts or instruments shall be
treated as a Partnership Expense relating to the Investment(s) hedged thereby and as part of the contributions applied to such Investment(s) for purposes of the distribution priorities set forth in the Partnership Agreement, and, if two or more
Investments are hedged thereby, such amounts shall be allocated among such Investments as reasonably determined by the General Partner. Any distributions resulting from any such sales, contracts or instruments shall be treated as Current Proceeds
from the Investment(s) hedged thereby, and, if two or more Investments are hedged thereby, such distributions shall be allocated among such Investments as reasonably determined by the General Partner. 
 ARTICLE VII 
 Books and Records and
Reports to Partners 
 7.1 Books and Records. The General Partner shall keep or cause to be kept complete and
appropriate records and books of account. Except as otherwise expressly provided herein, such books and records shall be maintained on a basis which allows the proper preparation of the Partnership’s financial statements and tax returns. The
books and records shall be maintained at the principal office or other offices of the Partnership as the General Partner shall determine. Any Limited Partner or its duly authorized representatives shall be permitted to inspect the books and records
of the Partnership for any proper purpose and make copies thereof at any reasonable time during normal business hours. The books and records of the Partnership will be retained by the General Partner at least until the seventh anniversary of the
creation of such books and records. In addition, the General Partner hereby agrees to preserve all financial and accounting records pertaining to the Partnership and this Agreement during the term of the Partnership as set forth in Section 2.7
and for four years thereafter. 
 7.2 Federal, State, Local and Non-U.S. Income Tax Information. Within 90 days after the end of each
Fiscal Year, or as soon as practicable thereafter and within 180 days (subject in both cases to reasonable delays in the event of the late receipt of any necessary information from any Person in which the Partnership holds Investments) after the end
of such Fiscal Year, the General Partner shall prepare and send, or cause to be prepared and sent, to each person who was a Partner at any time during such Fiscal Year copies of such information as may be required for Federal, state, local and
non-U.S. income tax reporting purposes, including copies of Schedule K-1 (“Partner’s Share of Income, Credits, Deductions, etc.,”) or any successor schedule or form, for such person, and such other information as a Partner may
reasonably request for the purpose of applying for refunds of withholding taxes. 
  

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 7.3 Reports to Partners. (a) Subject to Section 11.2, within forty-five (45) days after
the end of each of the first three Fiscal Quarters of each Fiscal Year of the Partnership, and within 90 days (subject in both cases to reasonable delays in the event of the late receipt of any necessary financial statements from any Person in which
the Partnership holds Investments) after the end of each Fiscal Year of the Partnership, the General Partner shall send to each person who was a Partner during such period: 
 (i) the following financial statements for the Partnership prepared on an accrual basis and in accordance with GAAP: 
 (A) a balance sheet of the Partnership as of the end of such period, 
 (B) a statement of income or loss for each Partner and a statement of Partners’ capital for such period, 
 (C) a statement of cash flows, and 
 (D) a statement of changes in Partners’ equity; 
 (ii) a schedule of changes in Capital
Account balances of a Partner; 
 (iii) in the case of an annual report with respect to any Fiscal Year, an opinion of a
nationally recognized accounting firm based upon their audit of the financial statements referred to in clause (i) above; and 
 (iv) in the case of an annual report with respect to any Fiscal Year, the General Partner shall cause to be mailed to each Partner, if not already contained in such annual report, an itemized report containing: 
 (A) a statement of any fees received by the General Partner or any of its Affiliates during such Fiscal Year in connection with the
Partnership (including fees received from or in respect of Investments in Portfolio Companies); 
 (B) such other information
which any Limited Partner may reasonably request in writing relating to the Partnership’s or the General Partner’s other relationships, if any, with Portfolio Companies (subject to the imposition by the General Partner of reasonable
confidentiality restrictions with respect to such information); 
 (C) a certificate of the General Partner to the effect that
the statement of the fees described in subparagraph (A) above is true and correct in all material respects; and 
 (D) a
statement of any Broken Deal Expenses borne by the Partnership during such Fiscal Year. 
  

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 (b) On a semi-annual basis, the General Partner shall send to each person who was a Partner during such
period (A) a schedule of the Partnership’s valuation of each Investment held by the Partnership during such period and (B) a summary of each Investment acquired or Disposed of during such period, including the acquisition or
Disposition costs, as applicable, in connection therewith. 
 (c) Subject to the confidentiality provisions hereof, the General Partner shall
use reasonable efforts, where it is reasonable under the circumstances to do so, to provide such other information as any Limited Partner may from time to time request in order to comply with regulatory requirements, including tax filing or
reporting requirements, to which such Limited Partner (or any class of Limited Partners) is subject; provided, that the General Partner, acting reasonably and in good faith, shall have the right (but not the obligation) to require such
Limited Partner(s) receiving such information to pay the reasonable costs and expenses incurred by the General Partner in providing such information. In addition, the General Partner shall use reasonable efforts to provide CaLPERS with any
additional reports that CalPERS reasonably may request. 
 ARTICLE VIII 
 Transfers, Withdrawals and Default 
 8.1 Transfer and Withdrawal of the
General Partner. (a) Voluntary Transfer. Without the consent of a Majority in Interest of the Limited Partners, the General Partner shall not have the right to assign or otherwise transfer all or any part of its Interest (including by way
of the merger or other similar business combination transaction between such General Partner and another entity whether consensual or by operation of law) as a general partner of the Partnership (but may pledge its interest in connection with any
Partnership Indebtedness), and in no case shall the General Partner have the right to withdraw from the Partnership; provided, that without the consent of the Limited Partners the General Partner may, at the General Partner’s expense, be
reconstituted as or converted into another form of entity (any such reconstituted or converted entity being deemed to be the General Partner for all purposes hereof) by merger, consolidation or otherwise, or transfer all or any part of its interest
as the general partner of the Partnership to one of its Affiliates, so long as such reconstitution, conversion or transfer does not have adverse tax or legal consequences for the Limited Partners. In the event of a transfer by the General Partner of
all of its interest as a general partner of the Partnership in accordance with this Section 8.1(a), its transferee shall be substituted in its place as general partner of the Partnership and immediately thereafter the General Partner shall
withdraw as a general partner of the Partnership. 
 (b) Removal of the General Partner following Disabling Event. The General Partner
shall cease to be the general partner of the Partnership upon the occurrence of a Disabling Event, and thereafter, except as provided by applicable law, neither the General Partner nor its successors in interest shall have any of the powers,
obligations or liabilities of a general partner of the Partnership under this Agreement or under applicable law. Subject to Section 9.1(b), upon the occurrence of any Disabling Event the Partnership shall be dissolved and wound up in accordance
with the provisions of Section 9.2. If the General Partner shall cease to be the general partner of the Partnership upon the occurrence of a Disabling Event 

  

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and a Majority in Interest of the Limited Partners shall determine to continue the business of the Partnership pursuant to Section 9.1(b), notice of
that determination shall be given to the General Partner by a party authorized by such Limited Partners to give such notice on behalf of such Limited Partners. 
 (c) Removal/Dissolution for Cause. A Majority in Interest of the Limited Partners may, at their option upon notice to the General Partner at any time following the occurrence of an event of Cause and the
failure of the General Partner to cure such event of Cause within 45 calendar days thereafter (including, in the case of any finding of Cause with respect to the conduct of personnel of the General Partner, if the General Partner terminates or
causes the termination of employment with such entity and its Affiliates of all individuals who engaged in the conduct constituting such Cause and makes the Partnership and any entity in which the Partnership has made an Investment whole for any
actual financial loss which such conduct had caused the Partnership or such entity), either (i) require the removal, effective as of a date not less than 30 days from the date of notice to the General Partner of such removal, of the General
Partner from the Partnership and the substitution of other Persons as general partner of the Partnership in lieu thereof (which successor general partner shall be approved by 66-2/3% in Interest of the Limited Partners and which removal shall be
effected in accordance with the procedures set forth in Section 8.1(e)) or (ii) dissolve the Partnership. Except as required by law or legal process, upon notice of a removal of the General Partner under the Partnership Agreement pursuant
to this Section 8.1(c), the General Partner may not exercise its powers pursuant to this Agreement or the Partnership Agreement during the 30 day period indicated in clause (i) above without the prior consent of a Majority in Interest of
Limited Partners; provided, that the General Partner and any of its respective Affiliates shall be indemnified by the Partnership for any liability to any third party arising from any action that any of them is unable to take during such 30
day period, due to a lack of a Majority in Interest of Limited Partners consent. The General Partner shall pay the Partnership’s reasonable out-of-pocket costs and expenses of effecting the General Partner’s removal pursuant to this
Section 8.1(c). 
 (d) Removal Without Cause. A Majority in Interest of the Limited Partners may, at their option at any time
require the removal, effective as of a quarter end date not less than 30 days from the date of notice to the General Partner of such removal, of the General Partner from the Partnership and the substitution of another Person as general partner of
the Partnership in lieu thereof (which successor general partner shall be approved by a Majority in Interest of the Limited Partners and which removal shall be effected in accordance with the procedures set forth in Section 8.1(f)). 

(e) A successor general partner elected pursuant to Section 8.1(c) or 9.1(b) shall be required to purchase for cash the General Partner’s
interest in the Partnership at a price equal to, or alternatively upon the dissolution and winding up of the Partnership pursuant to Section 8.1(c) or Section 9.1(b) the General Partner shall be entitled to receive an amount equal to, the
Appraised Value Without Carry. In the case of removal, within 30 days after the determination of the Appraised Value Without Carry, the General Partner shall sell and transfer to its successor general partner all of the General Partner’s right,
title and interest in and to the Partnership and the Partnership’s assets upon payment in cash of the Appraised Value Without Carry by such successor general partner. 
  

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 (f) A successor general partner selected pursuant to Sections 8.1(b) or 8.1(d), shall be required to
purchase for cash the General Partner’s interest in the Partnership at a price equal to the Appraised Value With Carry, and upon liquidation pursuant to Section 8.1(b) the General Partner shall be entitled to receive the amounts provided
in Section 9.3. Within 30 days after the determination of the Appraised Value With Carry, the General Partner shall sell, assign and transfer to the successor general partner all of the General Partner’s right, title and interest in and to
the Partnership and the Partnership’s assets upon payment in cash by such successor general partner of the Appraised Value With Carry by such successor general partner. 
 (g) Upon any removal of the General Partner under this Section 8.1, the Partnership shall change its name as soon as practicable to a name not
including JER and shall refrain from making any use of the name JER whether in any trademark or service mark incorporating the name JER or otherwise. The Partnership shall not refer thereafter to the name JER or any trademark or service mark
incorporating the name JER (except where it is required to state that it was previously known under its name or any trademark or service mark incorporating that name) and the new name of the Partnership shall be capable of confusion in any way with
such name. The provisions of this clause shall be enforceable by the General Partner notwithstanding if it has been replaced. 
 8.2
Assignments/Substitutions or Withdrawals by Limited Partners. (a) Subject to Section 8.2(c), a Limited Partner may not, directly or indirectly, sell, assign or otherwise transfer or pledge its Interest in whole or in part to
any Person (an “Assignee”), without the prior written consent of the General Partner, which consent may be given or withheld in the sole and absolute discretion of the General Partner; provided, that in the case of transfers
which are not as a security interest (i) such consent shall not be unreasonably withheld to transfers to Affiliates of a Limited Partner so long as the transferor remains liable for the performance by the transferee of its obligations hereunder
and assumes all such obligations, (ii) such consent shall not be unreasonably withheld to transfers by Limited Partners which are state agencies to a successor state agency and (iii) such consent shall not be withheld to transfers by a
Limited Partner which is a trustee of an employee benefit plan to a successor trustee of such plan, in each case so long as such transfer satisfies the conditions set forth in clauses (A) through (E) below. Each assigning, transferring or
pledging Limited Partner agrees that it will pay all reasonable expenses, including attorneys’ fees and credit facility expenses, incurred by the Partnership in connection with any actual or proposed assignment, transfer or pledge of an
Interest by such Limited Partner, whether or not such assignment, transfer or pledge is consummated, except to the extent that the Assignee thereof agrees to and does bear such expenses. Notwithstanding anything herein to the contrary, no such
assignment or transfer shall be made unless in the opinion of responsible counsel (who may be counsel for the Partnership), which opinion and counsel shall be satisfactory to the General Partner and which opinion may be waived, in whole or in part,
in the good faith discretion of the General Partner: 
 (A) such assignment or transfer would not violate the Securities Act
or any other securities or “Blue Sky” laws applicable to the Partnership or the Interest to be assigned or transferred; 
  

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 (B) such assignment or transfer would not cause the Partnership to lose its status as a
partnership for U.S. Federal income tax purposes or cause the Partnership to become subject to the 1940 Act; 
 (C) such
assignment or transfer would not cause the Partnership to be treated as a “publicly traded partnership” within the meaning of Section 7704 of the Code and the regulations promulgated thereunder; 
 (D) such assignment or transfer would not cause (A) all or any portion of the assets of the Partnership to (I) constitute
“plan assets” (under ERISA, the Code or any applicable Similar Law) of any existing or contemplated ERISA Partner or Benefit Plan Partner, or (II) be subject to the provisions of ERISA, the Code or any applicable Similar Law, or
(B) the General Partner to become a fiduciary with respect to any existing or contemplated ERISA Partner or Benefit Plan Partner, pursuant to ERISA or any applicable Similar Law; and 
 (E) such assignment or transfer would not otherwise cause the Partnership, the General Partner, JER or any Portfolio Company to violate
any applicable law, regulation or government requirement. 
 (b) A permitted Assignee of an Interest in the Partnership of a Limited Partner
(other than an Assignee which holds such Interest as a secured party) shall be admitted as a substitute Limited Partner in the Partnership only with the consent of the General Partner (which consent may be given or withheld in its sole discretion).
In such event, the assigning Limited Partner of such Interest shall be released from all of its obligations and liabilities hereunder except pursuant to Section 5.2(b) and Section 10.6 or as may otherwise be agreed by such assigning
Limited Partner in connection with such assignment. A permitted Assignee of an Interest in the Partnership of a Limited Partner which holds such Interest as a secured party shall be admitted as a substitute Limited Partner in the Partnership upon
foreclosure of such security interest only with the consent of the General Partner (which consent may be given or withheld in its sole discretion). An assignee of an Interest that is not admitted as a substitute Limited Partner shall be entitled
only to allocations and distributions with respect to that Interest and shall have no rights to vote in respect of such Interest, to participate in the affairs of the Partnership or to any information or accounting of the affairs of the Partnership
and shall not have any of the other rights of a Partner pursuant to this Agreement. 
 (c) Following the Lock-Up Period, any assignment or
transfer of CalPERS’ Interest pursuant to this Section 8.2 (other than as set forth in clauses (i) through (iii) of Section 8.2(a)) must be made in accordance with the following procedures: 
 (i) CalPERS shall have an option (a “Transfer Option”) to sell, assign or otherwise transfer or pledge its Interest in
whole or in part to one or more third parties unaffiliated with CalPERS. CalPERS shall exercise a Transfer Option by giving the General Partner a written notice (the “Transfer Notice”), informing the General Partner of CalPERS’
intent to transfer or pledge its Interest; provided, that CalPERS may not exercise a Transfer Option if CalPERS is a Defaulting Limited Partner; and, provided, further, that in any 12 month period, CalPERS may only exercise two
Transfer Options. 
  

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 (ii) Subsequent to the delivery of such Transfer Notice, CalPERS shall be entitled to
(i) market its Interest, and/or (ii) sell, contribute, transfer or otherwise convey its Interest to any party or parties (including the General Partner or any of its affiliates) unaffiliated with CalPERS and reasonably acceptable to the
General Partner, within one (1) year following the date of the Transfer Notice; provided, however, that if the General Partner or any of its Affiliates offered to purchase CalPERS’ Interest pursuant to this Section 8.2(c)(ii),
(A) the price received for CalPERS’ Interest shall not be less than the purchase price therefor last offered in writing by the General Partner to CalPERS and (B) the other terms and conditions of such transfer are otherwise no more
favorable in any material respect to the assignee or transferee than those offered by the General Partner or its Affiliates, as applicable. Any determinations pursuant to clauses (A) and (B) of the immediately foregoing sentence, shall be
made in CalPERS’ reasonable judgment. Subject to any confidentiality requirements, the General Partner shall provide reasonable assistance to CalPERS in completing a transfer to a third party pursuant to this Section 8.2(c)(ii) and permit
CalPERS to provide any potential Assignee with all information that such Assignee may reasonably require in making a decision to purchase the Interest. The General Partner shall admit any Assignee pursuant to this Section 8.2(c)(ii) as a
substitute Limited Partner of the Partnership; provided, that (i) such Assignee must be creditworthy as determined in good faith by the General Partner, (ii) any transfer pursuant to this paragraph shall not be subject to the
opinion of counsel requirement set forth in Section 8.2(a), but shall otherwise be subject to the requirements, limitations and conditions set forth in Section 8.2(a)(A) through (E) and (iii) the Assignee agrees to assume the
obligations of, and shall succeed to the rights of, CalPERS under this Agreement. 
 (d) Any attempted assignment or substitution not made in
accordance with this Section 8.2 shall be null and void. 
 8.3 Defaulting Limited Partner. (a) Any Limited Partner that fails to
make, when due, any portion of the Capital Contribution or other payments required to be made by such Limited Partner pursuant to this Agreement or to make any other payment required to be made by it hereunder when required to be made may, in the
discretion of the General Partner, be charged an additional amount on the unpaid balance of any such Capital Contributions or other payments at the Prime Rate plus 2.0% from the date such balance was due and payable through the date full payment for
such balance is actually made, and to the extent such additional amount is not otherwise paid such additional amount may be deducted from any distribution to such Limited Partner. Any such additional amount owed to the Partnership shall be allocated
and distributed to the other Partners pro rata to their Capital Commitments. 
 (b) If any Limited Partner fails to make, when due, any
portion of the Capital Contribution required to be made by such Limited Partner pursuant to this Agreement or to make any other payment required to be made by it hereunder when required to be made, then the Partnership shall promptly provide written
notice of such failure to such Limited Partner. If such Limited Partner fails to make such Capital Contribution or other payment within five (5) Business Days after receipt of such notice, then (i) such Limited Partner shall be deemed a
“Defaulting Limited Partner” and (ii) the following Sections 8.3(c) through (g) shall apply. Notwithstanding any provision of this Agreement to the contrary, if a Limited Partner fails to make, when due, the Capital
Contribution required to be made by such Limited Partner for an 

  

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Investment, the General Partner may in its sole and absolute discretion, without notice or the lapse of the foregoing time period, exclude such Limited
Partner from participation in such Investment. 
 (c) The General Partner shall have the right to determine, in its sole discretion, that
whenever the vote, consent or decision of a Limited Partner or of the Partners is required or permitted pursuant to this Agreement, except as required by the Act, any Defaulting Limited Partner shall not be entitled to participate in such vote or
consent, or to make such decision, and such vote, consent or decision shall be tabulated or made as if such Defaulting Limited Partner were not a Partner. 
 (d) The General Partner shall have the right in its sole discretion to: 
 (i)
(A) determine that a Defaulting Limited Partner shall (I) not be entitled to make any further Capital Contributions to the Partnership for Investments; provided, that the liability of such Defaulting Limited Partner to make Capital
Contributions to the Partnership pursuant to Sections 3.1(a)(iv) – (vii), 4.4, 5.2(b) and 10.6 shall in any case remain unchanged as if such default had not occurred and (II) forfeit to the non-defaulting Limited Partners as recompense for
damages suffered, and the Partnership shall withhold (for the account of the nondefaulting Limited Partners), all distributions except to the extent that such distributions represent a return of capital to such Defaulting Limited Partner less any
expenses, deductions or losses (including such defaulting Limited Partner’s share of the Net Loss on all Writedowns) allocated to such Limited Partner and (B) assess up to a 25% reduction in the Capital Account balance of the Defaulting
Limited Partner (which to the extent imposed shall reduce distributions to such Defaulting Limited Partner pursuant to the foregoing clause (i)). Any amounts withheld from the Defaulting Limited Partner by the Partnership or reduced by the General
Partner pursuant to the preceding sentence shall be distributed among the nondefaulting Limited Partners in proportion to their Percentage Interests in the Investment or Partnership property giving rise to such distribution or, in the case of a
distribution upon liquidation, in proportion to the liquidating distributions to them pursuant to Section 9.3, subject to the right of each such nondefaulting Limited Partner not to have a distribution in kind made to it pursuant to Sections
3.2(b) and 9.3; 
 (ii) determine that a Defaulting Limited Partner is no longer entitled to make any further Capital
Contributions to the Partnership for Investments; provided, that the liability of such Defaulting Limited Partner to make Capital Contributions to the Partnership pursuant to Sections 3.1(a)(iv), 3.1(a)(v), 3.1(a)(vi), 3.1(a)(vii), 4.4,
5.2(b) and 10.6 shall in any case remain unchanged as if such default had not occurred; or 
 (iii) upon delivery of written
notice to the Defaulting Limited Partner, cause the Defaulting Limited Partner to transfer (and upon receipt of such notice such Defaulting Limited Partner shall so transfer) all of its Interest to one or more Limited Partners selected by the
General Partner in its sole discretion, which have agreed to purchase such Interest, effective immediately, at a transfer price equal to 75% of such Defaulting Limited Partner’s Capital Account. 
  

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 (e) In the event that a Limited Partner defaults in making a Capital Contribution to the Partnership, the
General Partner may procure with the agreement of one or more other Limited Partners that such Limited Partner(s) make the Capital Contribution defaulted upon or require all of the nondefaulting Limited Partners to increase their Capital
Contributions by an aggregate amount equal to the Capital Contribution of the Defaulting Limited Partner on which it defaulted; provided, that no Limited Partner will be required to fund amounts in excess of its Unpaid Capital Commitment. If
the General Partner elects to require such increase, the General Partner shall deliver to each nondefaulting Partner written notice of such default as promptly as practicable after its occurrence and, thereafter, with respect to each Investment, the
General Partner shall as promptly as practicable deliver to each such nondefaulting Partner a Payment Notice in respect of the Capital Contribution which the Defaulting Limited Partner failed to make. Subject to the proviso set forth above in this
Section 8.3(e), such Payment Notice shall (i) call for a Capital Contribution by each such nondefaulting Partner in an amount equal to the amount of such nondefaulting Partner’s Pro Rata Share of such additional Capital Contribution
and (ii) specify a Payment Date for such Capital Contribution, which date shall be at least ten (10) calendar days from the date of delivery of such Payment Notice by the General Partner. If any Limited Partner is not required to make a
Capital Contribution in accordance with this Section 8.3(e) because such Capital Contribution would be in excess of such Limited Partner’s Unpaid Capital Commitment, then, subject to the proviso set forth in this Section 8.3(e), the
General Partner shall send to each other Limited Partner which is not subject to the constraint set forth above and which is otherwise able to participate in such Investment a Payment Notice providing the amount of any additional Capital
Contribution which such other Limited Partner shall be required to make as a result of such excess not being funded by the defaulting Limited Partner, which amount shall bear the same ratio to the aggregate of the additional amounts payable by all
such other Limited Partners as such other Limited Partner’s Unpaid Capital Commitment bears to the Unpaid Capital Commitments of all such other Limited Partners. The provisions of this Section 8.3(e) shall operate successively until either
all Limited Partners able to participate in such Investment are subject to the constraint set forth above or the full amount of the Capital Contribution of the Defaulting Limited Partner has been provided for. 
 (f) No right, power or remedy conferred upon the General Partner in this Section 8.3 shall be exclusive, and each such right, power or remedy shall
be cumulative and in addition to every other right, power or remedy whether conferred in this Section 8.3 or now or hereafter available at law or in equity or by statute or otherwise. No course of dealing between the General Partner and any
Defaulting Limited Partner and no delay in exercising any right, power or remedy conferred in this Section 8.3 or now or hereafter existing at law or in equity or by statute or otherwise shall operate as a waiver or otherwise prejudice any such
right, power or remedy. The General Partner may also in its sole discretion institute a lawsuit against any Defaulting Limited Partner for specific performance of its obligation to make Capital Contributions or any other payments to be made
hereunder and to collect any overdue amounts hereunder, with interest on such overdue amounts calculated at the rate specified in Section 8.3(a) and each Limited Partner agrees to pay on demand all costs and expenses (including attorneys’
fees) incurred by or on behalf of the Partnership in connection with the enforcement of this Agreement against such Limited Partner as a result of a default by, such Limited Partner. 
  

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 (g) Each Limited Partner acknowledges by its execution hereof that it has been admitted to the
Partnership in reliance upon its agreements under this Agreement, that the General Partner and the Partnership may have no adequate remedy at law for a breach hereof and that damages resulting from a breach hereof may be impossible to ascertain at
the time hereof or of such breach. 
 (h) If any Limited Partner becomes a Defaulting Limited Partner, the General Partner may withdraw from
such Limited Partner’s sub-account in the Escrow Account any funds therein. 
 8.4 Further Actions. The General Partner shall
cause this Agreement to be amended to reflect as appropriate the occurrence of any of the transactions referred to in this Article VIII as promptly as is practicable after such occurrence and all Partners shall reasonably cooperate with the
implementation of any such amendment. 
 8.5 Admissions and Withdrawals Generally. Except as expressly provided in this Agreement, no
Partner shall have the right to withdraw from the Partnership or to withdraw any part of its Capital Account and no additional Partner may be admitted to the Partnership. Each new Partner shall be admitted as a Partner upon the execution by it or on
its behalf of an agreement pursuant to which it agrees to adhere to, and become bound by the terms of this Agreement, and acceptance thereof by the General Partner. The names and addresses of all Persons admitted as Partners and their status as a
General Partner or a Limited Partner shall be maintained in the records of the Partnership. 
 8.6 Required/Elective Withdrawals. (a)
A Limited Partner may be required to completely or partially withdraw from the Partnership if (i) in the reasonable judgment of the General Partner, a material adverse effect on the Partnership or any of its Affiliates, any Partner, any Person
in which the Partnership holds Investments or any prospective investment is likely to result absent such withdrawal (ii) the Partnership or any Partner is reasonably likely to be subject to any requirement to register under the 1940 Act or the
assets of the Partnership would be reasonably likely to be characterized as assets of an employee benefit plan or other retirement plan, account or arrangement and subject the Partnership and/or the General Partner (or other persons
responsible for the investment and operation of the Partnership’s assets) to (a) the fiduciary responsibility or prohibited transactions provisions contained in Title I of ERISA or Section 4975 of the Code or (b) any applicable
Similar Law or (iii) in the reasonable judgment of the General Partner, a significant delay, extraordinary expense or a material adverse effect on the Partnership or any of its Affiliates, any Person in which the Partnership holds Investments
or any prospective investment is likely to result. Notice of any such withdrawal shall be given to all Limited Partners as well as a copy of the opinion of counsel referred to above in the case of a withdrawal pursuant to clause (ii) above.

 (b) Upon written notice to the General Partner, a Limited Partner shall have the power to withdraw from the Partnership if by reason of a
change in any law (which shall be construed as any law (including common law or customary law), statute, constitution, decree, judgment, treaty, regulation, directive, by-law, order or any other legislative measure of any government, supranational,
local government, statutory or regulatory body or court), or judicial interpretation thereof, to which such Limited Partner is subject occurring after such Limited 

  

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Partner’s admission to the Partnership, a violation of any such law, regulation or order or a non-exempt prohibited transaction under Section 406
of ERISA or Section 4975 of the Code will more probably than not result in respect of such Limited Partner without such withdrawal, provided that any such Limited Partner shall remain liable to the Partnership to the extent of any breach of a
representation, warranty or covenant made by such Limited Partner to the Partnership arising out of or relating to such withdrawal. A Limited Partner seeking to withdraw pursuant to this Section 8.6(b) shall supply opinions of counsel to such
effect (which opinions and counsel shall be reasonably satisfactory to the General Partner) and such other information as the General Partner may reasonably request to verify such Limited Partner’s right to withdraw pursuant to this
Section 8.6(b). 
 (c) Withdrawals pursuant to this Section 8.6 will be effected either by (i) the Partnership’s
termination of such Limited Partner’s Interest in the Partnership at a price equal to the Appraised Value With Carry and for the consideration permitted by Section 8.6(d) or (ii) a transfer of such Limited Partner’s Interest in
the Partnership in accordance with the requirements of Section 8.2 within not more than 60 days following notices of withdrawal as provided in this Section 8.6; provided, however, that in the case of a transfer pursuant to this
Section 8.6, the General Partner will use its best efforts to assist the withdrawing Limited Partner in effecting such a transfer. 
 (d) A complete or partial withdrawal pursuant to Section 8.6 will be effected by the Partnership’s termination of the withdrawing Limited Partner’s Interest at a price equal to the Appraised Value With Carry of such Interest,
and for the consideration set forth in this Section 8.6(d). In addition to cash, securities (through a distribution in kind of Investments) may be used as consideration; the making of any such payment in kind shall be at the option of the
General Partner after consultation with the withdrawing Limited Partner, and such payment in kind shall be made in the form of the withdrawing Limited Partner’s pro rata share of each Investment of the Partnership; provided, that if such
distribution in kind would cause the withdrawing Limited Partner or the Partnership to suffer an adverse effect as a result of the application of law or, in the judgment of the General Partner, cause the Partnership to breach any contractual
obligation of the Partnership, the General Partner or their respective Affiliates, then such Limited Partner and the General Partner shall each use its best efforts to make alternative arrangements for the sale or transfer into an escrow account of
any such distribution on mutually agreeable terms; and provided, further, that a non-pro rata distribution in kind may be made with the consent of the withdrawing Limited Partner; and provided, further, that a withdrawing
Limited Partner may in its sole discretion decline to receive any distribution in kind of an Investment in connection with a withdrawal under this Section 8.6, in which case, in lieu of such distribution in kind the Partnership may pay the
related amount with a promissory note bearing interest at the Prime Rate (initially determined as of the most recent date prior to the effective date of a withdrawal) plus 2% and a maturity at the liquidation of the Partnership; provided,
that interest shall be payable (and principal shall be pre-payable) to the extent the Investment that otherwise would have been distributed to such withdrawing Limited Partner is disposed of. The effective date of any withdrawal pursuant to this
Section 8.6(d) shall be the last day of the month which is at least 60 days following the date on which notice of such withdrawal was given pursuant to this Section 8.6. 
  

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 (e) If a Limited Partner withdraws from the Partnership pursuant to this Section 8.6, (i) the
portion, if any, of the Investments attributable to the Carried Interest allocable to the General Partner with respect to such Limited Partner’s Interest shall remain in the Partnership in cash or in kind, as the case may be, and shall be held
solely for the account of the General Partner, (ii) the portion of such Limited Partner’s Capital Account corresponding to such portion of the Investments shall be allocated to the Capital Account of the General Partner and (iii) the
General Partner shall be entitled to the proceeds from the disposition of such portion of the Investments at the time of their disposition. 
 ARTICLE IX 
 Term and Dissolution of the Partnership 
 9.1 Dissolution. The Partnership shall be dissolved and its business and affairs subsequently wound up upon the earliest to occur of any one of
the following events (each an “Event of Dissolution”): 
 (a) The expiration of the term of the Partnership
in accordance with Section 2.7; 
 (b) The expiration of 90 days after the occurrence of a Disabling Event; provided,
that the Partnership shall not be dissolved if, within 90 days after the Disabling Event, a Majority in Interest of the Limited Partners agree in writing to continue the business of the Partnership and to the appointment, effective as of the
date of the Disabling Event, of another General Partner which shall agree to purchase the Interest of the General Partner in the manner specified in Section 8.1(f); 
 (c) After the expiration or termination of the Commitment Period at the time as of which all Investments have been disposed of;

 (d) The determination by the General Partner at any time that such earlier dissolution and termination would be either
(i) in the best interests of the Partners (provided that any such determination is consented to by a Majority in Interest of the Limited Partners) or (ii) is necessary or advisable because there has been a material adverse change in any
applicable law or regulation or to avoid any violation of, or registration under, the 1940 Act, ERISA, Section 4975 of the Code or the applicable provisions of any Similar Law; 
 (e) Following the expiration of the Lock-Up Period, in the event that at least a Majority in Interest of the Limited Partners submit a
notice of dissolution of the Partnership (which notice may be submitted at any time and for any reason), the effective date of dissolution specified in such notice, being a date not less than 90 days from the date of such notice to the General
Partner; 
 (f) The effective date of dissolution pursuant to Section 8.1(c); 
 (g) At any time that there are no limited partners of the Partnership, unless the business of the Partnership is continued in accordance
with the Act, or 
  

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 (h) The entry of a decree of judicial dissolution under the Act. 
 For the avoidance of doubt, the death, bankruptcy, insolvency, dissolution, liquidation, withdrawal, expulsion or removal of a Limited Partner shall not
operate to terminate the Partnership, and the estate or trustee in bankruptcy or receiver or liquidator of a deceased, bankrupt, insolvent, dissolved, expelled or removed Limited Partner shall not have the right to withdraw such Limited
Partner’s Capital Contribution or require repayment of such Limited Partner’s Advance prior to the liquidation of the Partnership. 
 9.2 Winding-up. Upon the occurrence of an Event of Dissolution (but subject to the provisions of the proviso in Section 9.1(b)), the Partnership shall be wound up and liquidated. The General Partner or, if there is no general
partner (including if, as a result of a Disabling Event, the Partnership is being dissolved pursuant to Section 8.1(b) or (c)), a liquidator appointed by a Majority in Interest of the Limited Partners, shall proceed with the Dissolution Sale
and the Final Distribution. In the Dissolution Sale, the General Partner or such liquidator shall use its best efforts to reduce to cash and cash equivalent items such assets of the Partnership as the General Partner or such liquidator shall deem it
advisable to sell, subject to obtaining fair value for such assets and any tax or other legal considerations (including legal restrictions on the ability of a Limited Partner to hold any assets to be distributed in kind). 
 9.3 Final Distribution. After the Dissolution Sale, the proceeds thereof and the other assets of the Partnership shall be distributed in one or
more installments in the following order of priority: 
 (a) To satisfy all creditors of the Partnership as required by the
Act (including the payment of expenses of the winding-up, liquidation and dissolution of the Partnership), including Partners who are creditors of the Partnership, to the extent otherwise permitted by law, either by the payment thereof or the making
of reasonable provision therefor (including the establishment of reserves, in amounts established by the General Partner or such liquidator); and 
 (b) The remaining proceeds, if any, plus any remaining assets of the Partnership, shall be applied and distributed to the Partners in accordance with the positive balances of the Partners’ Capital Accounts, as
determined after taking into account all adjustments to Capital Accounts for the Partnership taxable year during which the liquidation occurs, by the end of such taxable year or, if later, within 90 days after the date of such liquidation;
provided, that liquidating distributions shall be made in the same manner and amounts as distributions under Section 3.3 if such distributions would result in the Partners receiving a different amount than would have been received
pursuant to a liquidating distribution based on Capital Account balances. For purposes of the application of this Section 9.3 and determining Capital Accounts on liquidation, all unrealized gains, losses and accrued income and deductions of the
Partnership shall be treated as realized and recognized immediately before the date of distribution. If a Limited Partner shall, upon the advice of counsel, determine that there is a reasonable likelihood that any distribution in kind of an asset
would cause such Limited Partner to be in violation of any law, regulation or governmental order, such Limited Partner and the General Partner or the liquidator shall each use its best efforts to make alternative arrangements for the sale or
transfer into an escrow account of any such distribution on mutually agreeable terms. 
  

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 9.4 General Partner Clawback. (a) If as of the Final Clawback Determination Date, distributions of
Carried Interest to the General Partner have been made with respect to any non-Defaulting Limited Partner and the aggregate distributions of Carried Interest to the General Partner with respect to any Limited Partner minus any Interim General
Partner Clawback Amount with respect to any Limited Partner exceeds 20% of the sum of (I) the Cumulative Net Distributions with respect to such Limited Partner and (II) the aggregate distributions of Carried Interest to the General Partner with
respect to such Limited Partner minus any Interim General Partner Clawback Amount with respect to any Limited Partner, determined after giving effect to all transactions through the Final Clawback Determination Date, then the General Partner
shall be obligated to return promptly to the Partnership, first, out of payments from the Escrow Account under Section 3.4(c) and, thereafter, out of payments made directly to the Partnership by or on behalf of the General Partner, an amount
(the “Final Clawback Amount”) equal to the lesser of (x) the Excess 20% Amount with respect to such Limited Partner and (y) the aggregate distributions of Carried Interest to the General Partner with respect to such
Limited Partner. The payment of the Final Clawback Amount to the Partnership shall constitute full satisfaction by the General Partner of its obligations under this Section 9.4 in respect of such Limited Partner. The Partnership shall
distribute any Final Clawback Amount so returned to such Limited Partner. 
 (b) If a successor general partner acquires the General
Partner’s Interest in the Partnership pursuant to Section 8.1(b) or (c), the General Partner shall pay to the Partnership on the date of sale of its Interest to the successor general partner pursuant to Section 8.1(b) or (c), for
distribution to the Limited Partners entitled thereto, an amount equal to the aggregate amount that would be payable pursuant to Section 9.4(a) on such date, determined on the assumption that all remaining Investments were sold for their Fair
Market Values determined pursuant to Section 4.7 and the proceeds therefrom were distributed to the Partners. The payment of such amount to the Partnership shall constitute full satisfaction by the General Partner of its obligations under this
Section 9.4. The obligation of a successor general partner under this Section 9.4 shall be calculated as if the Partnership had made all remaining Investments, at a purchase price equal to their Fair Market Values determined pursuant to
Section 4.7, on the date of the successor general partner’s admission to the Partnership. 
 (c) If a Limited Partner withdraws
pursuant to Section 8.6, the General Partner shall pay to the Partnership on the date of such withdrawal, for distribution to such Limited Partner, an amount equal to the aggregate amount that would be payable to such Limited Partner pursuant
to Section 9.4(a) on such date, determined on the assumption that all remaining Investments were sold for their valuations determined pursuant to Section 4.7 and the proceeds therefrom were distributed to the Partners. The payment of such
amount to the Partnership shall constitute full satisfaction by the General Partner of its obligations under this Section 9.4 with respect to such Limited Partner. 
 9.5 Guarantee of Clawback Performance. JER Fund IV and JERIT have severally guaranteed the performance of the Final Clawback Amount payable pursuant to the terms of Section 9.4 solely in respect of their
respective shares of the Carried Interest to the extent and on the terms set forth in the Guarantee in the form set forth in Annex C (the 
  

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“Guarantee”). If shares of the Carried Interest are allocated to any new partner of the General Partner who is not already a Related Party
(as defined in the Guarantee) of an existing party to the Guarantee, the General Partner shall cause such partner to become a party to such Guarantee on the same terms as the existing parties to the Guarantee. 
 ARTICLE X 
 Capital Accounts and
Allocations of Profits and Losses 
 10.1 Capital Accounts. (a) A separate capital account (the “Capital
Account”) shall be established and maintained for each Partner. The Capital Account of each Partner shall be credited with such Partner’s Capital Contributions to the Partnership, all Profits allocated to such Partner pursuant to
Section 10.2 and any items of income or gain which are specially allocated pursuant to Section 10.3; and shall be debited with all Losses allocated to such Partner pursuant to Section 10.2, any items of loss or deduction of the
Partnership specially allocated to such Partner pursuant to Section 10.3, and all cash and the Carrying Value of any property (net of liabilities assumed by such Partner and the liabilities to which such property is subject) distributed by the
Partnership to such Partner. To the extent not provided for in the preceding sentence, the Capital Accounts of the Partners shall be adjusted and maintained in accordance with the rules of U.S. Treasury Regulations Section 1.704-1(b)(2)(iv), as
the same may be amended or revised. Any references in any section of this Agreement to the Capital Account of a Partner shall be deemed to refer to such Capital Account as the same may be credited or debited from time to time as set forth above. In
the event of any transfer of any interest in the Partnership in accordance with the terms of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the transferred interest. With respect to
the Capital Accounts of Limited Partners receiving Disposition Proceeds rather than an in kind distribution of Marketable Securities pursuant to Section 3.2(b)(i)(B), the Partnership shall be treated as having distributed such Marketable
Securities in kind at a value equal to such Disposition Proceeds and resulting Profit and Loss in respect of such distribution shall be specially allocated equitably among those Partners electing to receive proceeds. Any Profits and Losses with
respect to Marketable Securities actually distributed in kind shall be allocated equitably only among those Partners not so electing to receive Disposition Proceeds. 
 (b) Notwithstanding anything else in this Agreement to the contrary, no Partner shall be required to pay to the Partnership or to any other Partner the amount of any negative balance which may exist from time to time
in such Partner’s Capital Account. 
 10.2 Allocations of Profits and Losses. Except as otherwise provided in this Agreement,
Profits, Losses and, to the extent necessary, individual items of income, gain, loss or deduction of the Partnership shall be allocated among the Partners in a manner such that the Capital Account of each Partner, immediately after making such
allocation, and after taking into account actual distributions made during such Fiscal Year (and distributions with respect to such Fiscal Year to be made after the end of such Fiscal Year if the General Partner is able to determine in good faith
the manner in which such distributions will be made under Section 3.3(a)) is, as nearly as possible, equal (proportionately) to (i) the distributions that would be made to such Partner pursuant to Section 3.3(a) if the Partnership
were dissolved, its affairs wound up and its assets sold for cash equal to their Carrying Value, all Partnership liabilities 
  

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including the Partnership’s share of any liability of any entity treated as a partnership for U.S. federal income tax purposes in which the Partnership
is a partner, were satisfied (limited with respect to each non-recourse liability to the Carrying Value of the assets securing such liability), and the net assets of the Partnership were distributed in accordance with Section 3.3(a) to the
Partners immediately after making such allocation, minus (ii) such Partner’s share of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain, computed immediately prior to the hypothetical sale of assets, plus
(iii) in the case of a Limited Partner, such Limited Partner’s share of the Clawback Amount that would be distributed thereto, if any, minus (iv) in the case of the General Partner, the Clawback Amount provided, that to the
extent Losses exceed the positive Adjusted Capital Account Balances of the Partners determined after giving effect to actual distributions and hypothetical sale distributions, the excess shall be allocated first to those Partners with positive
Adjusted Capital Account Balances, in proportion to, and to the extent of, such Adjusted Capital Account Balances, and thereafter to the General Partner. Notwithstanding the foregoing, the General Partner in its sole discretion shall make such
allocations as may be needed to ensure that allocations are in accordance with the interests of the Partners within the meaning of the Code and the Regulations. 
 10.3 Special Allocation Provisions. Notwithstanding any other provision in this Article X: (a) Minimum Gain Chargeback. If there is a net decrease in Partnership Minimum Gain or Partner Nonrecourse Debt
Minimum Gain (determined in accordance with the principles of U.S. Treasury Regulations Sections 1.704-2(d) and 1.704-2(i)) during any Partnership taxable year, the Partners shall be specially allocated items of Partnership income and gain for such
year (and, if necessary, subsequent years) in an amount equal to their respective shares of such net decrease during such year, determined pursuant to U.S. Treasury Regulations Sections 1.704-2(g) and 1.704-2(i)(5). The items to be so allocated
shall be determined in accordance with U.S. Treasury Regulations Section 1.704-2(f). This Section 10.3(a) is intended to comply with the minimum gain chargeback requirements in such U.S. Treasury Regulations Sections and shall be
interpreted consistently therewith; including that no chargeback shall be required to the extent of the exceptions provided in U.S. Treasury Regulations Sections 1.704-2(f) and 1.704-2(i)(4). 
 (b) Qualified Income Offset. If any Partner unexpectedly receives any adjustments, allocations, or distributions described in U.S. Treasury
Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6), items of Partnership income and gain shall be specially allocated to such Partner in an amount and manner sufficient to eliminate the deficit Adjusted Capital Account Balance in his
Capital Account created by such adjustments, allocations or distributions as promptly as possible; provided, that an allocation pursuant to this Section 10.3(b) shall be made only to the extent that a Partner would have a deficit
Adjusted Capital Account Balance in excess of such sum after all other allocations provided for in this Article X have been tentatively made as if this Section 10.3(b) were not in this Agreement. This Section 10.3(b) is intended to qualify
with the “qualified income offset” requirement of the Code. 
 (c) Gross Income Allocation. If any Partner has a deficit
Capital Account at the end of any Fiscal Year which is in excess of the sum of (i) the amount such Partner is obligated to restore, if any, pursuant to any provision of this Agreement, and (ii) the amount such Partner is deemed to be
obligated to restore pursuant to the penultimate sentences of U.S. Treasury Regulations Section 1.704-2(g)(1) and 1.704-2(i)(5), each such Partner shall be 

  

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specially allocated items of Partnership income and gain in the amount of such excess as quickly as possible; provided, that an allocation pursuant to
this Section 10.3(c) shall be made only if and to the extent that a Partner would have a deficit Capital Account in excess of such sum after all other allocations provided for in this Article X have been tentatively made as if
Section 10.3(b) and this Section 10.3(c) were not in this Agreement. 
 (d) Payee Allocation. If any payment to any person
that is treated by the Partnership as the payment of an expense is recharacterized by a taxing authority as a Partnership distribution to the payee as a partner, such payee shall be specially allocated an amount of Partnership gross income and gain
as quickly as possible equal to the amount of the distribution. 
 (e) Nonrecourse Deductions. Nonrecourse Deductions shall be
allocated 20% to the General Partner in accordance with its Capital Account balance and 80% to the Limited Partners in accordance with their respective Capital Account balances. 
 (f) Partner Nonrecourse Deductions. Partner Nonrecourse Deductions for any taxable period shall be allocated to the Partner who bears the economic
risk of loss with respect to the liability to which such Partner Nonrecourse Deductions are attributable in accordance with U.S. Treasury Regulations Section 1.704-2(i)(1). 
 (g) Any special allocations of income or gain pursuant to Sections 10.3(a), (b) or (c) hereof shall be taken into account in computing
subsequent allocations pursuant to Section 10.2 and this Section 10.3, so that the net amount of any items so allocated and all other items allocated to each Partner shall, to the extent possible, be equal to the net amount that would have
been allocated to each Partner if such allocations pursuant to Sections 10.3(b) or (c) had not occurred. 
 (h) Management Fee,
Organizational Expense. Management Fee and Organizational Expense expenses shall be allocated to the Limited Partners in accordance with their payment or Capital Contributions in respect thereof. 
 10.4 Tax Allocations. For income tax purposes only, each item of income, gain, loss and deduction of the Partnership shall be allocated among the
Partners in the same manner as the corresponding items of Profits and Losses and specially allocated items are allocated for Capital Account purposes; provided, that in the case of any Partnership asset the Carrying Value of which differs
from its adjusted tax basis for U.S. federal income tax purposes, income, gain, loss and deduction with respect to such asset shall be allocated solely for income tax purposes in accordance with the principles of Sections 704(b) and (c) of the
Code (in any manner determined by the General Partner) so as to take account of the difference between Carrying Value and adjusted basis of such asset. Notwithstanding the foregoing, the General Partner in its good faith discretion shall make
allocations for tax purposes as may be needed to ensure that allocations are in accordance with the interests of the Partners within the meaning of relevant tax law. The General Partner shall determine all matters concerning allocations for tax
purposes not expressly provided for herein in its good faith discretion. 
  

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 10.5 Other Allocation Provisions. The foregoing provisions and the other provisions of this
Agreement relating to the maintenance of Capital Accounts are intended to comply with U.S. Treasury Regulations Section 1.704-1(b) and shall be interpreted and applied in a manner consistent with such regulations. Sections 10.2 to 10.5 may be
amended at any time by the General Partner if necessary, in the opinion of tax counsel to the Partnership, to comply with such regulations, so long as any such amendment does not materially change the relative economic interests of the Partners.

 10.6 Tax Advances. (a) If the General Partner determines it is advisable, the General Partner may retain or withhold amounts and
make tax payments, including interest and penalties thereon on behalf of or with respect to any Partner (“Tax Advances”), the General Partner may withhold such amounts and make such tax payments as so required. All Tax Advances made
on behalf of a Partner shall, at the option of the General Partner, (i) be promptly paid to the Partnership by the Partner on whose behalf such Tax Advances were made or (ii) be repaid by reducing the amount of the current or next
succeeding distribution or distributions which would otherwise have been made to such Partner or, if such distributions are not sufficient for that purpose, by so reducing the proceeds of liquidation otherwise payable to such Partner. Whenever the
General Partner selects option (ii) pursuant to the preceding sentence for repayment of a Tax Advance by a Partner, for all other purposes of this Agreement such Partner shall be treated as having received all distributions (whether before or
upon liquidation) unreduced by the amount of such Tax Advance. To the fullest extent permitted by law, each Partner hereby agrees to indemnify and hold harmless the Partnership and the other Partners from and against any liability (including any
liability for taxes, penalties, additions to tax or interest) with respect to income attributable to or distributions or other payments to such Partner. In the event the Partnership is liquidated and a liability is asserted against the General
Partner or any member or officer of the General Partner for Tax Advances made or required to be made, the General Partner shall have the right to be reimbursed from the Limited Partner on whose behalf such Tax Advance was made or required to be
made. 
 (b) The General Partner may receive a tax distribution against subsequent distributions of Carried Interest to the General Partner
to the extent that annual distributions of Carried Interest actually received by the General Partner are not sufficient for the General Partner or any of its beneficial owners (whether such interests are held directly or indirectly) to pay when due
any income tax imposed on it or them, calculated using the Assumed Tax Rate (and any non-U.S. income taxes payable by it or them) that is attributable to income allocated to the General Partner hereunder; provided, that the aggregate amount
of income considered allocated to the General Partner for all periods shall not exceed the excess of income allocated to the General Partner over losses allocated to the General Partner from the Partnership to the date this determination is being
made. Amounts of Carried Interest otherwise to be distributed to the General Partner pursuant to Section 3.3(a) of the Agreement shall be reduced by the amount of any prior advances made to the General Partner pursuant to this
Section 10.6(b) until all such advances are restored to the Partnership in full. 
 (c) CalPERS represents to the General Partner that
it is a tax exempt entity under United States federal, state and local laws, and has never been subject to, and is unlikely to be subject to, any tax withholding requirements of the United States federal, state or local laws. Based on the foregoing,
the General Partner agrees that, if any United States taxing 

  

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authority claims that any tax is required to be withheld from any payments to CalPERS pursuant to the provisions of this Agreement, the General Partner will
provide CalPERS with written notice of such claim and will provide CalPERS with the opportunity to contest such claim, provided that such contest does not subject the Partnership or the General Partner to any potential liability to such
taxing authority for any such claimed withholding and payment. 
 ARTICLE XI 
 Miscellaneous 
 11.1 Waiver of Partition and Accounting. Except as may be
otherwise required by law in connection with the winding-up, liquidation and dissolution of the Partnership, each Partner hereby irrevocably waives any and all rights that it may have to maintain an action for an accounting or for partition or
similar action of any of the Partnership’s property. 
 11.2 Confidentiality. (a) Each Limited Partner agrees that, except as
otherwise consented to by the General Partner or as otherwise provided in this Agreement, such Limited Partner shall keep confidential in accordance with such Limited Partner’s internal procedures in effect from time to time and not to disclose
to any Person any information or matter relating to the Partnership and its affairs and any information or matter related to any Investment, including any information contained in any Payment Notice or any report distributed pursuant to Article VII;
provided, that a Limited Partner may disclose any such information to the extent that (i) such information is or becomes generally available to the public through no act or omission of such Limited Partner or constitutes Fund Level
Information, (ii) such information otherwise is or becomes known to such Limited Partner other than by disclosure by the Partnership or the General Partner, provided, that the source of such information is not bound by a confidentiality
agreement or other contractual, legal or fiduciary obligation of confidentiality, or (iii) such disclosure is to (A) such Limited Partner’s and its Affiliates’ trustees, directors, officers, employees, auditors, agents,
attorneys, financial advisors and other professional advisors responsible for matters relating to the Partnership or who otherwise have a need to know such information in connection with their responsibilities with such Limited Partner and who are
under an obligation to keep such information confidential on the terms set forth herein, (B) any investor approved of by the General Partner (such approval not to be unreasonably withheld) to which a Limited Partner sells or offers to sell an
Interest pursuant to Section 8.2 if such investor agrees to keep such information confidential on the terms set forth herein, or (C) any other Person to which such delivery or disclosure is necessary or appropriate (I) to effect
compliance with any law, rule, regulation or order applicable to such Limited Partner, including FOIA, (II) in response to any subpoena or other legal process or (III) in connection with any litigation to which such Limited Partner is a party;
provided, that in connection with any disclosure pursuant to clause (C), such Limited Partner shall upon request of the General Partner consult with the General Partner in seeking an order to protect the confidentiality of such information.

 (b) Notwithstanding anything in this Agreement to the contrary, to comply with United States Treasury Regulation
Section 1.6011-4(b)(3)(i), each Limited Partner (and any employee, representative or other agent of such Limited Partner) may disclose to any and all persons, without limitation of any kind, the U.S. federal income tax treatment and tax 

  

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structure of the Partnership or any transactions undertaken by the Partnership, it being understood and agreed, for this purpose, (1) the name of, or
any other identifying information regarding (a) the Partnership or any existing or future investor (or any affiliate thereof) in the Partnership, or (b) any investment or transaction entered into by the Partnership; (2) any
performance information relating to the Partnership or its investments; and (3) any performance or other information relating to previous funds or investments sponsored by JER, does not constitute such tax treatment or tax structure
information. 
 (c) Notwithstanding anything to the contrary herein, the General Partner acknowledges that CalPERS is a public agency subject
to state laws, including, without limitation, the California Public Records Act (Cal. Govt. Code § 6250, et seq.) (the “Public Records Act”), which provides generally that all records relating to a public agency’s business
are open to public inspection and copying unless exempted under the Public Records Act, and the Bagley-Keene Open Meetings Act (Cal. Govt. Code § 11,120, et seq.) (the “Open Meetings Act”), which provides generally for open
meetings for local legislative bodies. Neither the Partnership nor the General Partner shall make any claim against CalPERS if it makes available to the public any report, notice or other information that CalPERS received from the Partnership or the
General Partner which was required to be made public by CalPERS pursuant to any of the foregoing laws, including the Public Records Act or the Open Meetings Act. 
 (d) CalPERS acknowledges and agrees that notwithstanding any other provision of this Agreement, the General Partner may, in order to prevent any potential disclosure of confidential information (other than Fund Level
Information) that the General Partner determines in good faith is likely to occur, withhold all or any part of the information otherwise to be provided to CalPERS other than Fund Level Information and the IRS Forms 1065, Schedule K-1s. Prior to
withholding any information from CalPERS pursuant to this Section 11.2(d), the General Partner will use reasonable efforts to provide such information to CalPERS by means mutually agreeable to the General Partner and CalPERS that will preserve
the confidentiality of such information. 
 (e) Unless otherwise prohibited by law, CalPERS will use reasonable efforts to notify the General
Partner of any requests for disclosure of information relating to the Partnership (other than Fund Level Information) reasonably promptly upon receipt of such request and consult with the General Partner in determining whether an exemption from
disclosure is available and may be asserted. 
 (f) A Limited Partner may by giving written notice to the General Partner elect not to
receive copies of any document, report or other information that such Limited Partner would otherwise be entitled to receive pursuant to this Agreement and is not required by applicable law to be delivered. The General Partner agrees that it shall
make any such documents available to such Limited Partner at the General Partner’s offices (or, at the request of such Limited Partner, the offices of Partnership Counsel). 
 (g) Any obligation of a Limited Partner pursuant to this Section 11.2 may be waived in whole or in part by the General Partner in its sole and
absolute discretion. 
  

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 11.3 Power of Attorney. Each Limited Partner hereby irrevocably constitutes and appoints the
General Partner, with full power of substitution, the true and lawful attorney-in-fact and agent of such Limited Partner, to execute, acknowledge, verify, swear to, deliver, record and file, in its or its assignee’s name, place and stead, all
in accordance with the terms of this Agreement, all instruments, documents and certificates which may from time to time be required by the laws of the State of Delaware, any other jurisdiction in which the Partnership conducts or plans to conduct
its affairs, or any political subdivision or agency thereof to effectuate, implement and continue the valid existence and affairs of the Partnership, including, the power and authority to verify, swear to, acknowledge, deliver, record and file:

 (a) all certificates and other instruments, including any amendments to this Agreement or to the Certificate of Limited
Partnership, which the General Partner deems appropriate to form, qualify or continue the Partnership as an limited partnership (or a partnership in which the limited partners have limited liability) in the State of Delaware and all other
jurisdictions in which the Partnership conducts or plans to conduct its affairs, 
 (b) any amendments to this Agreement or
any other agreement or instrument which the General Partner deems appropriate to effect (i) the addition, substitution, removal or termination of any Limited Partner or General Partner pursuant to this Agreement or (ii) any other amendment
or modification to this Agreement, but only if such amendment or modification is duly adopted in accordance with the terms hereof (including, without limitation, the provisions of Section 11.4), 
 (c) all conveyances and other instruments which the General Partner deems appropriate to reflect the dissolution and termination of the
Partnership pursuant to the terms hereof, including the writing required by the Act to cancel the Certificate of Limited Partnership, 
 (d) all instruments relating to transfers of Interests of Limited Partners or to the admission of any substitute Limited Partner, including executing transfer documents on behalf of a Defaulting Limited Partner
pursuant to Section 8.3, and 
 (e) certificates of assumed name and such other certificates and instruments as may be
necessary under the fictitious or assumed name statutes from time to time in effect in the State of Delaware and all other jurisdictions in which the Partnership conducts or plans to conduct its affairs. 
 Such attorney-in-fact and agent shall not, however, have the right, power or authority to amend or modify this Agreement when acting in such capacities, except to the
extent authorized herein. This power of attorney shall terminate upon the bankruptcy, dissolution, disability or incompetence of the General Partner. The power of attorney granted herein shall be deemed to be coupled with an interest, shall be
irrevocable, shall survive and not be affected by the dissolution, bankruptcy or legal disability of the Limited Partner and shall extend to its successors and assigns; and may be exercisable by such attorney-in-fact and agent for all Limited
Partners (or any of them) by listing all (or any) of such Limited Partners required to execute any such instrument, and executing such instrument acting as attorney-in-fact. Any person dealing 

  

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with the Partnership may conclusively presume and rely upon the fact that any instrument referred to above, executed by such attorney-in-fact and agent, is
authorized, regular and binding, without further inquiry. If required, each Limited Partner shall execute and deliver to the General Partner within five Business Days after the receipt of a request therefor, such further designations or other
instruments as the General Partner shall reasonably deem necessary for the purposes hereof. 
 11.4 Amendments. (a) Except as required
by law, this Agreement (including the Annexes hereto) may be amended or supplemented by the written consent of the General Partner and a Majority in Interest of the Limited Partners; provided, that no such amendment shall 
 (i) increase any Limited Partner’s Capital Commitment, reduce its share of the Partnership’s distributions, income and gains by
any amount, increase its share of the Partnership’s losses by any amount, increase its share of the Management Fees payable by such Limited Partner or adversely affect the limited liability of such Limited Partner hereunder, without the written
consent of each Limited Partner so affected, 
 (ii) change the percentage of interests of Limited Partners (the
“Required Interest”) necessary for any consent required hereunder to the taking of an action unless such amendment is approved by Limited Partners who then hold interests equal to or in excess of the Required Interest for the
subject of such proposed amendment, or 
 (iii) amend this Section 11.4 without the consent of each Limited Partner.

 Notwithstanding the foregoing, this Agreement may be amended by the General Partner without the consent of the Limited Partners to

 (i) change the name of the Partnership pursuant to Section 2.2, and 
 (ii) cure any ambiguity or correct or supplement any provision hereof which is incomplete or inconsistent with any other provision hereof
or correct any printing, stenographic or clerical error or omission, provided, that such amendment does not adversely affect the interests of any of the Limited Partners; and 
 (iii) provided that such amendment is not reasonably likely to have an adverse economic effect on the Limited Partners or obligations of
the Limited Partners, amend Sections 10.2 to 10.5 pursuant to Section 10.5.; and 
 (iv) make any amendment so long as
the changes do not adversely affect the rights and obligations taken as a whole of any existing Limited Partner as a whole in any material respect and the amendment is not objected to in writing by any Limited Partner within twenty
(20) Business Days after notice of such amendment is given to all Limited Partners. 
 (b) The General Partner shall have the right to
amend this Agreement without the approval of any Partner to the extent the General Partner reasonably determines, based upon written advice of tax counsel to the Partnership, that the amendment is necessary to 

  

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provide assurance that the Partnership will not be treated as a “publicly traded partnership,” because it is entitled to “safe harbor”
treatment under Section 7704 of the Code and the regulations promulgated thereunder; provided, that (i) such amendment shall not change the relative economic interests of the Partners, reduce any Partners’ share of
distributions, or increase any Partner’s Capital Commitment or its liability hereunder, (ii) the General Partner provides a copy of such written advice and amendment to the Limited Partners at least twenty (20) Business Days prior to
the effective date of any such amendment and (iii) a Majority in Interest of the Limited Partners shall not have made a reasonable objection to such amendment prior to the effective date of such amendment. 
 (c) The General Partner shall have the right to amend this Agreement without the approval of any Partner on or before the effective date of final
regulations (or other official pronouncement), to amend, as determined by the General Partner in its good faith discretion, this Agreement to provide for (i) the election of a safe harbor under Regulations Section 1.83-3(l) (or any similar
provision) under which the fair market value of an Interest that is transferred in connection with the performance of services is treated as being equal to the liquidation value of that Interest, (ii) an agreement by the Partnership and all of
its Partners to comply with all the requirements set forth in such Regulations and Revenue Procedure 2005-43 (and any other guidance provided by the U.S. Internal Revenue Service with respect to such election) with respect to all Interests
transferred in connection with the performance of services while the election remains effective, and (iii) any other related amendments. 
 11.5 Entire Agreement. This Agreement and the other documents referred to herein, including all side letters, constitute the entire agreement among the Partners and between the Partners and the Initial Limited Partner with
respect to the subject matter hereof and supersede any prior agreement or understanding among or between them with respect to such subject matter. 
 11.6 Severability. Each provision of this Agreement shall be considered severable and if for any reason any provision which is not essential to the effectuation of the basic purposes of this Agreement is determined by a court of
competent jurisdiction to be invalid or unenforceable and contrary to the Act or existing or future applicable law, such invalidity shall not impair the operation of or affect those provisions of this Agreement which are valid. In that case, this
Agreement shall be construed so as to limit any term or provision so as to make it enforceable or valid within the requirements of any applicable law, and in the event such term or provision cannot be so limited, this Agreement shall be construed to
omit such invalid or unenforceable provisions. 
 11.7 Notices. (a) All notices, requests, demands and other communications hereunder
shall be in writing and shall be deemed to have been duly given as provided below if (i) mailed, registered mail, first-class postage paid, (ii) sent by overnight mail or courier, (iii) transmitted via telegram, telex or facsimile,
(iv) sent by e-mail, (v) posted on the Partnership’s intranet website in accordance with Section 11.7(b) unless a Limited Partner has informed the General Partner in writing that is elects not to receive correspondence by e-mail
or (vi) delivered by hand, if to any Partner, at such Partner’s address, or to such Partner’s facsimile number, and if to the Partnership, to the General Partner at the General Partner’s address, or to the General Partner’s
facsimile number, Attention: Daniel T. Ward, JER Partners, 1650 Tyson 

  

 65 

 
Boulevard, Suite 1600, McLean, VA, USA 22102, facsimile number: 703-714-8102, or to such other person or address as any Partner shall have last designated by
notice to the Partnership, and in the case of a change in address by the General Partner, by notice to the Limited Partners. Any notice shall be deemed to have been duly given if personally delivered or sent by the mails or by telegram or telex
confirmed by letter and will be deemed received, unless earlier received, (i) if sent by certified or registered mail, return receipt requested, when actually received, (ii) if sent by overnight mail or courier, when actually received,
(iii) if sent by telegram or telex or facsimile transmission, on the date confirmatory notice sent by first-class mail, postage prepaid, is received, (iv) if delivered by hand, on the date of receipt, (v) if sent by e-mail, on the day
the e-mail is sent; provided, that if such e-mail is sent after 5:00 pm EST or on a day that is not a Business Day, such notice shall be deemed received on the next succeeding Business Day, and (vi) if posted on the Partnership’s
intranet website in accordance with Section 11.7(b) on the day an e-mail is sent to the relevant Limited Partner instructing it that a notice has been posted; provided, that if such e-mail is sent after 5:00 pm EST or on a day that is
not a Business Day, such notice shall be deemed received on the next succeeding Business Day. Prior to establishing an intranet website for sending notices, requests, demands and other communications hereunder, the General Partner shall furnish each
Limited Partner (unless such Limited Partner has informed the General Partner in writing that is elects not to receive correspondence by e-mail) with the address of the Partnership’s intranet website and a password permitting access thereto.

 (b) The General Partner may, in its discretion, elect to provide notices, requests, demands and other communications hereunder to a
Limited Partner by (i) e-mailing such correspondence to such Limited Partner at the e-mail address provided to the General Partner by such Limited Partner, or (ii) posting such correspondence on the Partnership’s intranet website and
sending an e-mail to such Limited Partner notifying it of such posting, in each case unless such Limited Partner has informed the General Partner in writing that is elects not to receive correspondence by e-mail. 
 (c) Notwithstanding anything to the contrary in this Section 11.7, any notice to CalPERS requesting a Capital Contribution or any notice with
respect to a distribution from the Partnership to CalPERS, shall be transmitted both via facsimile and sent via e-mail. 
 11.8 Governing
Law. (a) This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware. In particular, the Partnership is formed pursuant to the Act, and the rights and liabilities of the Partners shall be as provided
therein, except as herein otherwise expressly provided. The Partners hereby submit to the nonexclusive jurisdiction of the courts of the State of Delaware in any action, suit or proceedings based on or arising under this Agreement. The Limited
Partners hereby waive as a defense that any such action suit or proceeding brought in such courts has been brought in an inconvenient forum or that the venue thereof may not be appropriate and, furthermore, agree that venue in the State of Delaware
for any such action, suit or proceedings, is appropriate; provided, that with regard to any actions brought against the General Partner or its Affiliates or employees, such jurisdiction shall be exclusive unless otherwise expressly agreed by
the General Partner. 
 (b) Notwithstanding Section 11.8(a), a Limited Partner that is a Governmental Plan and has provided the General
Partner, prior to its admission to the Partnership, with a certificate of an officer or its plan administrator or other writing reasonably acceptable to the 

  

 66 

 
General Partner stating that such an irrevocable submission to jurisdiction or waiver, as the case may be, would constitute a violation of applicable law,
regulation or established policy shall not be deemed to have made such an irrevocable submission or waiver, as the case may be. Furthermore, for the avoidance of doubt, CalPERS shall not be deemed to have made an irrevocable submission to
jurisdiction or waiver, as the case may be, pursuant to this Section 11.8. 
 11.9 Successors and Assigns. Except with
respect to the rights of Indemnified Parties hereunder, none of the provisions of this Agreement shall be for the benefit of or enforceable by the creditors of the Partnership and this Agreement shall be binding upon and inure to the benefit of the
Partners, the Initial Limited Partner and their legal representatives, heirs, successors and permitted assigns. 
 11.10 Partnership Tax
Treatment. The Partners intend for the Partnership to be treated as a partnership for U.S. federal income tax purposes and no election to the contrary shall be made. 
 11.11 Counterparts. This Agreement may be executed in one or more counterparts, all of which shall constitute one and the same instrument. 
 11.12 Interpretation. (a) Wherever from the context it appears appropriate, each term stated in either the singular or the plural shall include
the singular and the plural, and pronouns stated in either the masculine or the neuter gender shall include the masculine, the feminine and the neuter. The words “include,” “includes,” and “including” shall be deemed to
be followed by the phrase “without limitation”. The words “hereof”, “herein” and “hereunder” and words of similar impact when used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement. 
 (b) To the fullest extent permitted by law, whenever in this Agreement a Person is permitted or
required to make a decision (i) in its “sole discretion,” “sole and absolute discretion” or “discretion” or under a grant of similar authority or latitude, the Person shall be entitled to consider any interests and
factors as it desires, including its own interests and shall have no duty or obligation to give any consideration to any interests of or factors affecting the Partnership or any other Person, or (ii) in its “good faith” or under
another express standard, the person shall act under such express standard and shall not be subject to any other or different standards imposed by this Agreement or any other agreement contemplated herein or by relevant provisions of law or in
equity or otherwise. 
 (c) Notwithstanding any other provision of this Agreement to the contrary, no provision hereof shall be deemed to
eliminate a Partner’s implied contractual covenant of good faith and fair dealing and no provision of this Agreement shall be deemed to limit or eliminate the liability of any Partner for any act or omission that constitutes a bad faith
violation of the implied contractual covenant of good faith and fair dealing. 
 11.13 Headings. The section headings in this
Agreement are for convenience of reference only, and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof. 
  

 67 

 11.14 Delivery of Certificate of Limited Partnership, etc. The General Partner
shall promptly provide a copy of the Certificate of Limited Partnership, this Agreement and each amendment to the Certificate of Limited Partnership or this Agreement to each Limited Partner. 
 11.15 Counsel to the Partnership. Counsel to the Partnership may also be counsel to the Portfolio Companies, the General Partner and its
Affiliates. The General Partner may execute on behalf of the Partnership and the Partners any consent to the representation of the Partnership that counsel may request pursuant to the New York Rules of Professional Conduct, or similar rules in any
other jurisdiction (“Rules”). The Partnership has initially selected Simpson Thacher & Bartlett LLP (the “Partnership Counsel”) as legal counsel to the Partnership. Each Limited Partner acknowledges that
the Partnership Counsel does not represent any Limited Partner in the absence of a clear and explicit agreement to such effect between the Limited Partner and the Partnership Counsel (and that only to the extent specifically set forth in that
agreement), and that in the absence of any such agreement the Partnership Counsel shall owe no duties directly to a Limited Partner. In the event any dispute or controversy arises between any Limited Partner and the Partnership, or between any
Limited Partner or the Partnership, on the one hand, and the General Partner (or an Affiliate thereof that the Partnership Counsel represents), on the other hand, then each Limited Partner agrees that the Partnership Counsel may represent either the
Partnership or the General Partner (or its Affiliate), or both, in any such dispute or controversy to the extent permitted by the Rules, and each Limited Partner hereby consents to such representation. Each Limited Partner further acknowledges that,
whether or not the Partnership Counsel has in the past represented such Limited Partner with respect to other matters, the Partnership Counsel has not represented the interests of any Limited Partner in the preparation and negotiation of this
Agreement. 
 [rest of page intentionally left blank] 
  

 68 

 IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed as a deed as of the date first above written. 
  

					
	GENERAL PARTNER:
	
	JER DEBT CO-INVESTMENT ADVISORS, L.P.
		
	By:	 	JER DEBT CO-INVESTMENT ADVISORS, L.L.C.,
its general partner
			
		 	By:	 	/s/ Daniel T. Ward
		 		 	Name: Daniel T. Ward
		 		 	Title:   Managing Director

  

							
	LIMITED PARTNERS:
	
	All Limited Partners now and hereafter admitted pursuant to powers of attorney now and hereafter granted to the General Partner
		
	By:	 	JER DEBT CO-INVESTMENT ADVISORS, L.P., as attorney-in-fact for the Limited Partners subscribing for Interests as set forth
in the books and records of the Partnership
			
		 	By:	 	JER Debt Co-Investment Advisors, L.LC., its general partner
				
		 		 	By:	 	/s/ Daniel T. Ward
		 		 		 	Name: Daniel T. Ward
		 		 		 	Title:   Managing Director

  

	
	INITIAL LIMITED PARTNER:
	
	/s/ Daniel T. Ward
	Daniel T. Ward, solely to reflect his withdrawal

  

 69 

 Annex A 
 INVESTMENT GUIDELINES 
 The investment objective of the Partnership is
to make investments in certain debt securities and loans secured, directly or indirectly, by real estate (each such transaction of single or multiple assets, an “Investment”). Investments may include the acquisition of CMBS, CMBX,
Mezzanine Loans, B-Notes, rake bonds, preferred equity positions and acquisitions of whole loans and other mortgage interests (the “Target Investments”). Investments may include portfolios of Target Investments owned by banks,
insurance companies, investment banks, corporations or other Persons. The Partnership may incur or assume any Indebtedness as provided in Section 4.2(c). 
 The Partnership will not: 
 (a) invest in single family residential debt or mortgages,
equity interests in real estate, RMBS, non-performing loans, whole loans originated by JER and its Affiliates or triple net lease properties; 
 (b) invest in debt securities or loans not secured, directly or indirectly, by real estate assets located in the United States (including territories of the United States), provided, that in determining
whether the Partnership has complied with this paragraph (b), it is acknowledged that Investments made in certain pools of, or individual, debt securities and loans may be secured by real estate assets not located in the United States. An Investment
pursuant to this paragraph (b) secured by real estate assets located in the United States, the value of which equals or exceeds 50% of the value of all real estate assets securing such Investment, shall not be prohibited by this paragraph (b);
and 
 (c) make any single Investment or group of Investments in a single debt security or loan the amount of which
exceeds 25% of the Capital Commitments; provided that the Partnership may make a single Investment or group of Investments in a single debt security or loan in an amount of up to 40% of the Capital Commitments (such percentage amount shall be
calculated on a basis that includes any and all amounts of the Limited Partners’ obligation to make Capital Contributions in support of obligations owed to a lender or lenders) if the General Partner believes in good faith that the amount
retained in such single Investment or group of Investments can be reduced to no more than 25% of the Capital Commitments within one year from the date of the initial investment therein; and provided, further, that in the case of an Investment
which is comprised of multiple debt securities and loans, the foregoing limitation shall be applied on an asset-by-asset basis with respect to such Investment and not with respect to the Investment as a whole. 
 The above investment guidelines shall be subject to the good faith interpretation of the General Partner. 

 Annex B 
 Schedule of Capital Commitments 
  

			
	Name of Partner	  	Total Commitment
		  	

 Annex C 
 Form of Guarantee 
 THIS GUARANTEE (the “Guarantee”) dated as of
                         , 2007, is executed by each of the undersigned (collectively, the
“Guarantors”), for the benefit of JER US Debt Co-Investment Vehicle, L.P., a Delaware limited partnership (the “Partnership”), and its limited partners (the “Limited Partners”), to guarantee certain
hereinafter defined obligations of JER Debt Co-Investment Advisors L.P. (the “General Partner”) as general partner under the Amended and Restated Limited Partnership Agreement dated as of the date hereof (as the same may be amended,
supplemented or otherwise modified from time to time) (the “Partnership Agreement”) of the Partnership. Capitalized terms used herein but not otherwise defined herein shall have the meanings set forth in the Partnership Agreement.

 Preliminary Statement 
 As of the date hereof, the partners of the General Partner, consist of each Guarantor or a corporation, trust, partnership or other entity formed by such Guarantor for investment by or for the benefit of such corporation, trust, partnership
or other entity (each, a “Related Party” with respect to such Guarantor). As an inducement to the Limited Partners to join the Partnership and make the Capital Commitments, the Guarantors have agreed to enter into this Guarantee.
The Guarantors acknowledge that they will benefit from the Limited Partners’ participation in the Partnership. The Guarantors are incurring obligations hereunder concurrently with the incurrence by the General Partner of its obligations under
the Partnership Agreement. 
 In consideration of the above and as an inducement to the Limited Partners to join the Partnership and make the
Capital Commitments, the Guarantors agree as follows: 
 1. Guarantees of Final Clawback Amount; Related Definitions. (a) Each of
the Guarantors unconditionally and irrevocably, on a several but not joint basis, guarantees to the Partnership and each of the Limited Partners the payment in cash and performance when due of the General Partner’s obligations to the
Partnership as set forth in Section 9.4 of the Partnership Agreement (the “Clawback Obligation”) solely to the extent of the amount of such Guarantor’s Pro Rata Share (as hereinafter defined) of the Clawback Obligation,
and to the extent that for any reason the General Partner shall fail fully and punctually to pay and perform the Clawback Obligation, each of the Guarantors shall pay to the Partnership such amount (net of any prior fundings to the General Partner
from such Guarantor to pay such amount). The aggregate amount of the Guarantors’ Pro Rata Shares of the Clawback Obligation shall equal the Clawback Obligation. 
 (b) In the event that a Guarantor transfers all or any part of its interest in the General Partner to another entity, such transferor Guarantor shall remain liable for the performance by the transferee of its
obligations hereunder. 
 (c) (i) This Guarantee is an absolute, unconditional, continuing guarantee of payment and performance and not
of collectability, and is in no way conditioned or contingent upon any attempt to collect from the General Partner, enforce performance by the General 

 
Partner or on any other condition or contingency. The obligations and agreements of the Guarantors under this Section 1 shall be performed and observed
without requiring any notice of acceptance hereof, non-payment, non-performance or non-observance by the General Partner or any proof thereof or demand therefor, all of which Guarantors expressly waive to the fullest extent they are legally
permitted to do so. 
 (ii) Except for the defense of payment, to the maximum extent permitted by applicable law, each Guarantor hereby
waives and agrees not to assert or take advantage of any rights or defenses based on any rights or defenses of the General Partner to the Clawback Obligation including, without limitation, any failure of consideration, any statute of limitations,
any insolvency or bankruptcy of the General Partner or any other defense, offset or counterclaim to any liability hereunder. No invalidity, irregularity, or unenforceability of all or any part of the Clawback Obligation shall affect, impair, or be a
defense to this Guarantee, nor, except as set forth above, shall any other circumstance which might otherwise constitute a defense available to, or legal or equitable discharge of, the General Partner in respect of any of the Clawback Obligation
affect, impair, or be a defense to this Guarantee. 
 (iii) To the maximum extent permitted by applicable law, one or more successive or
concurrent actions may be brought hereon against the Guarantor, either in the same action in which any obligor is sued or in separate actions. If any claim or action, or action on any judgment, based on this Guarantee is brought against the
Guarantor, the Guarantor agrees, except as set forth above, not to deduct, set off or seek to counterclaim for or recoup any amounts which are or may be owed to the Guarantor by the Partnership or the General Partner. 
 (iv) To the maximum extent permitted by applicable law, the obligations of the Guarantor under this Guarantee shall not be affected by (i) any
merger or consolidation of the Partnership or the General Partner or any Affiliate of any such entity, (ii) any change in the direct or indirect ownership of the Guarantor or any other Person in the General Partner or any of its Affiliates,
(iii) the effect of any non-U.S. or domestic laws, rules, regulations, or actions of a court or governmental body other than actions taken specifically in respect of the Clawback Obligation or this Guarantee, (iv) any amendment or waiver
of or any consent to departure from the Partnership Agreement including, without limitation, any increase in the Clawback Obligation, except for changes, amendments, waivers, or consent effected in accordance with the Partnership Agreement,
(v) any failure by the Partnership, the General Partner or any Affiliate of any such entity to mitigate its damages with respect to the Clawback Obligation, or (vi) except as set forth above, any other condition, event or circumstance
which might otherwise constitute a legal or equitable discharge, release, or defense of a surety or guarantor, or which might otherwise limit recourse against the Guarantor, it being understood that the Guarantee shall not be discharged except by
the full payment and performance of the Clawback Obligation. 
 (v) Each Limited Partner is a beneficiary of this Guarantee with the right to
enforce it to the extent provided herein. The failure (by waiver, delay, consent, or otherwise) of any Limited Partner to assert any claim or demand or to enforce any remedy under this Guarantee will not in any manner vary or reduce the obligations
of the Guarantor hereunder, except as provided in the following sentence. The Partnership Agreement may be amended, modified, or supplemented in accordance with its terms without notice to, consent of, or agreement by the Guarantor. 

 (d) For the avoidance of doubt, none of the Guarantors shall have any obligation to pay the amounts owed
under this Guarantee by any other Guarantor. 
 (e) (i) A Guarantor’s “Pro Rata Share” of the Clawback Obligation
shall equal (A) the product of (I) the Carried Interest Giveback Percentage (as defined below) of such Guarantor and its Related Parties and (II) the amount of such Clawback Obligation, minus (B) the interest of such
Guarantor and its Related Parties in the total amounts paid out of the Escrow Account or otherwise paid by the General Partner on behalf of such Guarantor and its Related Parties in satisfaction of such Clawback Obligation. 
 (ii) The “Carried Interest Giveback Percentage” of a Guarantor and its Related Parties shall mean the percentage determined by dividing
(a) the amount of any Carried Interest actually distributed or deemed distributed to such Guarantor and its Related Parties (including amounts placed in the Escrow Account and amounts distributed to the General Partner and allocated but not
distributed to such Guarantor and its Related Parties) by (b) the aggregate amount of Carried Interest actually distributed or deemed distributed to all Guarantors and their Related Parties (including amounts placed in the Escrow Account and
amounts distributed to the General Partner and allocated but not distributed to such Guarantors and their Related Parties). 
 (v) If a
Guarantor or one of its Related Parties owns an interest in the General Partner through a wholly owned subsidiary or other entity, such interest shall be treated as if owned directly by such Guarantor for purposes of this Guarantee. If any partner
of the General Partner is not a Guarantor or a Related Party of a Guarantor, the interest of such partner in the General Partner shall be treated as if owned pro rata by each Guarantor for purposes of this Agreement. 
 2. Representations and Warranties. Each Guarantor represents and warrants to the Partnership and to each Limited Partner that this guarantee has
been duly executed and delivered by such Guarantor and constitutes the legal, valid and binding obligation of such Guarantor enforceable against such Guarantor in accordance with its terms (subject to the effects of applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied
covenant of good faith and fair dealing). 
 3. Collection Expenses. If the Partnership or any Limited Partner is required to pursue
any remedy against a Guarantor hereunder, such Guarantor shall pay to the Partnership or such Limited Partner, upon demand, all reasonable attorney’s fees and expenses and all other costs and expenses incurred by such party in enforcing this
Guarantee against such Guarantor, subject to presentation of such evidence of incurrence of such expenses as such Guarantor may reasonably request. 
 4. Successions or Assignments. This Guarantee shall inure to the benefit of the successors or assigns of the Partnership and the Limited Partners who shall have, to the extent of their interest, the rights of the Partnership and the
Limited Partners hereunder. This Guarantee is binding upon the Guarantors and their successors and permitted assigns. The Guarantors are not entitled to assign their obligations hereunder to any other Person without the written consent of a Majority
in Interest of the Limited Partners, and any purported assignment in violation of this provision shall be void. 

 5. Notices. All notices and other communications provided for herein shall be in writing and shall
be deemed to have been duly given if delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, to the party to whom it is directed: 
  

	 	(a)	If to the Guarantors: 

 c/o JER Debt Co-Investment
Advisors, L.P 
 1650 Tysons Boulevard, Suite 1600 
 McLean, Virginia 22102 
 or at such other address as a Guarantor shall have specified by notice in writing to the
Partnership and the Limited Partners. 
  

	 	(b)	If to the Partnership: 

 JER Debt Co-Investment Advisors,
L.P. 
 1650 Tysons Boulevard, Suite 1600 
 McLean, Virginia 22102 
 (c) If to a Limited Partner, to such address as shall be set forth as the address
of such Limited Partner in the books and records of the Partnership. 
 6. Miscellaneous. (a) This Guarantee may not be amended,
modified, released or discharged with respect to any Guarantor except with the written consent of a Majority in Interest of the Limited Partners and such Guarantor. 
 (b) This Guarantee and the rights and obligations each of the Guarantors, the Partnership and the Limited Partners shall be governed by and construed in accordance with the laws of the State of New York. 

(c) This Guarantee may be enforced by any Limited Partner as a third-party beneficiary of this Guarantee and the obligations of each of the Guarantors
hereunder. 

 IN WITNESS WHEREOF, each of the Guarantors have caused this Guarantee to be duly executed and delivered
as of the day and year first written above. 
  

							
	JER REAL ESTATE PARTNERS IV, L.P.
	
	By: JER Real Estate Advisors IV, L.P., its general partner
		
		 	By: JER Real Estate Advisors, Inc., its general partner
				
		 		 	By:	 	 
		 		 	Name:	 	
		 		 	Title:	 	
	
	JER REAL ESTATE QUALIFIED PARTNERS IV, L.P.
	
	By: JER Real Estate Advisors IV, L.P., its general partner
		
		 	By: JER Real Estate Advisors, Inc., its general partner
				
		 		 	By:	 	 
		 		 	Name:	 	
		 		 	Title:	 	

  

			
	JER INVESTORS TRUST, INC.
		
	By:	 	 
	Name:	 	
	Title:	 	

 Schedule I 
 Credit Team Dedication Plan 
 The General Partner agrees to cause at least (i) one senior member (the
“Senior Member”) of the Credit Team to dedicate a material amount of his business time to the operation of the Partnership and (ii) one additional member (the “Additional Member”) of the Credit Team to dedicate
a substantial amount of his business time to the operation of the Partnership. JER will inform CalPERS of who the members of the Credit Team are who are subject to clauses (i) and (ii) above. The remaining members of the Credit Team will
dedicate such time to the operation of the Partnership as is reasonably necessary. Any member of the Credit Team may be replaced with an Approved Replacement. The General Partner shall give notice to CalPERS if the investment professionals mentioned
in clauses (i) and (ii) are no longer dedicated to the Partnership’s business. 
 It is currently expected that Mark Weiss will serve as the
Senior Member and Alex Gilbert as the Additional Members of the Credit Team, responsible for executing the Partnership’s investment strategy and objective.Asset Purchase Agreement

 Exhibit 10.1 
 EXECUTION VERSION 
 ASSET PURCHASE AGREEMENT 
 BY AND BETWEEN 
 PDL BIOPHARMA, INC., 
 a Delaware corporation 
 and 
 OTSUKA PHARMACEUTICAL CO., LTD., 
 a
Japanese corporation 
 Dated as of December 14, 2007 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	Page
	ARTICLE 1	  	DEFINITIONS	  	1
				
		  	1.1	  	“Accounts Payable”	  	1
				
		  	1.2	  	“Accounts Receivable”	  	1
				
		  	1.3	  	“Affiliate”	  	1
				
		  	1.4	  	“API”	  	1
				
		  	1.5	  	“Assets”	  	1
				
		  	1.6	  	“Assumed Contracts”	  	1
				
		  	1.7	  	“Books and Records”	  	1
				
		  	1.8	  	“Business”	  	2
				
		  	1.9	  	“Buyer Indemnitee(s)”	  	2
				
		  	1.10	  	“Claim”	  	2
				
		  	1.11	  	“Clinical Data”	  	2
				
		  	1.12	  	“Closing”	  	2
				
		  	1.13	  	“Closing Date”	  	2
				
		  	1.14	  	“Closing Date Inventory Value Schedule”	  	2
				
		  	1.15	  	“Confidential Information”	  	2
				
		  	1.16	  	“Confidentiality Agreement”	  	2
				
		  	1.17	  	“Customer Orders”	  	2
				
		  	1.18	  	“Drug Product”	  	2
				
		  	1.19	  	“Effective Date”	  	2
				
		  	1.20	  	“Excluded Assets”	  	2
				
		  	1.21	  	“Expiration Date”	  	2
				
		  	1.22	  	“FDA”	  	2
				
		  	1.23	  	“FD&C Act”	  	2
				
		  	1.24	  	“Governmental Entity”	  	2
				
		  	1.25	  	“HSR”	  	2
				
		  	1.26	  	“IND”	  	3
				
		  	1.27	  	“Knowledge”	  	3
				
		  	1.28	  	“Liabilities”	  	3
				
		  	1.29	  	“Licensed IP Rights”	  	3
				
		  	1.30	  	“Material Adverse Change” and “Material Adverse Effect”	  	3

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
		  	1.31	  	“Marketing and Promotional Documents”	  	3
				
		  	1.32	  	“NDA”	  	3
				
		  	1.33	  	“Non Product-Specific Manufacturing Information”	  	3
				
		  	1.34	  	“Non-U.S. Marketing Approvals”	  	3
				
		  	1.35	  	“Notice of Objection”	  	3
				
		  	1.36	  	“Packaged Product”	  	4
				
		  	1.37	  	“Packaging Inventory”	  	4
				
		  	1.38	  	“Patents”	  	4
				
		  	1.39	  	“Product”	  	4
				
		  	1.40	  	“Product Inventory”	  	4
				
		  	1.41	  	“Product-Specific Manufacturing Information”	  	4
				
		  	1.42	  	“Product Specifications”	  	4
				
		  	1.43	  	“Purchase Price”	  	4
				
		  	1.44	  	“Raw Materials and WIP”	  	4
				
		  	1.45	  	“Registrations”	  	4
				
		  	1.46	  	“Research and Development Materials”	  	4
				
		  	1.47	  	“SEC”	  	4
				
		  	1.48	  	“Seller Indemnitees”	  	4
				
		  	1.49	  	“Shared Contracts”	  	4
				
		  	1.50	  	“Tangible Assets	  	4
				
		  	1.51	  	“Tax” and “Taxes”	  	4
				
		  	1.52	  	“Territory”	  	5
				
		  	1.53	  	“Third Party Accounting Firm”	  	5
				
		  	1.54	  	“Trademarks”	  	5
				
		  	1.55	  	“Trademark Registrations”	  	5
				
		  	1.56	  	“Transition Services Agreement”	  	5
				
		  	1.57	  	“Worldwide Safety Reports”	  	5
			
	 ARTICLE 2
	  	TRANSFER OF ASSETS; LICENSE AND SUBLICENSE	  	5
				
		  	2.1	  	Purchase and Sale of Assets	  	5
				
		  		  	 (a)    Patents
	  	5
				
		  		  	 (b)    Licensed IP and Know-How
	  	5
				
		  		  	 (c)    Trademark Registrations
	  	6

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
		  		  	 (d)    Copyrights
	  	6
				
		  		  	 (e)    Registrations
	  	6
				
		  		  	 (f)     Product-Specific Manufacturing Information
	  	6
				
		  		  	 (g)    Non Product-Specific Manufacturing Information
	  	6
				
		  		  	 (h)    Research and Development Materials
	  	7
				
		  		  	 (i)     Marketing and Promotional Documents
	  	7
				
		  		  	 (j)     Worldwide Safety Reports
	  	7
				
		  		  	 (k)    Clinical Data
	  	7
				
		  		  	 (l)     Tangible Assets
	  	7
				
		  		  	 (m)   Domain Names
	  	7
				
		  		  	 (n)    Product Inventory
	  	7
				
		  		  	 (o)    Packaging Inventory
	  	7
				
		  		  	 (p)    Raw Materials and WIP
	  	8
				
		  		  	 (q)    Assumed Contracts
	  	8
				
		  		  	 (r)     Books and Records
	  	8
				
		  		  	 (s)    Customer Orders
	  	8
				
		  	2.2	  	Excluded Assets	  	8
				
		  	2.3	  	Assumed Liabilities	  	8
				
		  	2.4	  	Excluded Liabilities	  	9
				
		  	2.5	  	Risk of Loss	  	9
				
		  	2.6	  	Taxes	  	10
			
	 ARTICLE 3
	  	CONSIDERATION	  	10
				
		  	3.1	  	Purchase Price	  	10
				
		  	3.2	  	Method of Payment	  	10
				
		  	3.3	  	Allocation of Purchase Price	  	10
				
		  	3.4	  	Product Inventory, Raw Materials and WIP Adjustment	  	10
			
	 ARTICLE 4
	  	CLOSING	  	11
				
		  	4.1	  	Closing	  	11
				
		  	4.2	  	Actions at Closing	  	11
				
		  		  	 (a)    Deliveries by Seller at Closing
	  	11
				
		  		  	 (b)    Deliveries by Buyer at Closing
	  	13

  

 iii 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
	 ARTICLE 5
	  	EMPLOYMENT MATTERS	  	13
				
		  	5.1	  	Employees	  	13
			
	 ARTICLE 6
	  	REPRESENTATIONS AND WARRANTIES OF SELLER	  	14
				
		  	6.1	  	Organization and Authority	  	14
				
		  	6.2	  	No Violation or Conflict	  	15
				
		  	6.3	  	Consents and Approvals	  	15
				
		  	6.4	  	Title to Assets	  	15
				
		  	6.5	  	Patents	  	15
				
		  	6.6	  	Trademarks	  	16
				
		  	6.7	  	Registrations	  	16
				
		  	6.8	  	Assumed Contracts	  	16
				
		  	6.9	  	Manufacturing	  	16
				
		  	6.10	  	Registrations; Regulatory Matters	  	17
				
		  	6.11	  	Regulatory Status of Product	  	17
				
		  	6.12	  	Product Net Sales	  	17
				
		  	6.13	  	Violations of Law	  	17
				
		  	6.14	  	Litigation	  	17
				
		  	6.15	  	Taxes	  	18
				
		  	6.16	  	Customers and Suppliers	  	18
				
		  	6.17	  	Inventory	  	18
				
		  	6.18	  	Employees	  	18
				
		  	6.19	  	Insurance	  	19
				
		  	6.20	  	Packaging Inventory	  	19
				
		  	6.21	  	Brokers and Finders	  	19
				
		  	6.22	  	Sufficiency	  	19
				
		  	6.23	  	No Implied Warranty	  	19
			
	 ARTICLE 7
	  	REPRESENTATIONS AND WARRANTIES OF BUYER	  	20
				
		  	7.1	  	Organization and Authority	  	20
				
		  	7.2	  	No Conflict or Violation	  	20
				
		  	7.3	  	Consents and Approvals	  	20
				
		  	7.4	  	Cash Resources	  	21
				
		  	7.5	  	Litigation	  	21

  

 iv 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
		  	7.6	  	Brokers and Finders	  	21
				
		  	7.7	  	Buyer Due Diligence	  	21
			
	 ARTICLE 8
	  	PRE-CLOSING COVENANTS OF SELLER	  	21
				
		  	8.1	  	Governmental Filings	  	21
				
		  	8.2	  	Conduct of Business	  	21
				
		  	8.3	  	Obtaining Necessary Consents	  	21
				
		  	8.4	  	Shared Contracts	  	22
				
		  	8.5	  	No Solicitation	  	22
				
		  	8.6	  	Access	  	22
			
	 ARTICLE 9
	  	CONDITIONS TO CLOSING	  	23
				
		  	9.1	  	Conditions to Obligations of Buyer	  	23
				
		  	9.2	  	Conditions to Obligations of Seller	  	23
			
	 ARTICLE 10
	  	POST - CLOSING COVENANTS	  	23
				
		  	10.1	  	Further Assurances	  	23
				
		  	10.2	  	Transfer of Registrations; Interim Responsibility	  	23
				
		  	10.3	  	Communication With Agencies	  	24
				
		  	10.4	  	Federal Supply Schedule	  	24
				
		  	10.5	  	Adverse Experience Reporting	  	24
				
		  	10.6	  	Promotion, Marketing and Labeling	  	25
				
		  	10.7	  	Medical Inquiries	  	26
				
		  	10.8	  	Non-Use of Trademarks	  	26
				
		  	10.9	  	Documents	  	26
				
		  	10.10	  	Governmental Inspections	  	26
				
		  	10.11	  	Intellectual Property Maintenance	  	27
				
		  	10.12	  	Insurance	  	27
				
		  	10.13	  	Payments from Third Parties	  	27
				
		  	10.14	  	Distribution of Products	  	27
				
		  	10.15	  	Product Returns, Chargebacks and Rebates	  	28
				
		  	10.16	  	Additional Assets	  	28
				
		  	10.17	  	Bulk Transfer Laws	  	28
			
	 ARTICLE 11
	  	CONFIDENTIALITY	  	28
				
		  	11.1	  	Confidentiality	  	28

  

 v 

 TABLE OF CONTENTS 
 (continued) 
  

							
		  	11.2	  	Publicity	  	29
			
	 ARTICLE 12
	  	TERM AND TERMINATION	  	29
			
	 ARTICLE 13
	  	INDEMNIFICATION	  	30
				
		  	13.1	  	Indemnification by Buyer	  	30
				
		  	13.2	  	Indemnification by Seller	  	30
				
		  	13.3	  	Claims	  	31
				
		  	13.4	  	Limitation; Exclusivity	  	31
			
	 ARTICLE 14
	  	MISCELLANEOUS	  	31
				
		  	14.1	  	Non-Survival of Representations and Warranties	  	31
				
		  	14.2	  	No Third Party Beneficiaries	  	31
				
		  	14.3	  	Force Majeure	  	31
				
		  	14.4	  	Governing Law; Jurisdiction; Dispute Resolution and Arbitration	  	32
				
		  	14.5	  	Severability	  	32
				
		  	14.6	  	Entire Agreement	  	33
				
		  	14.7	  	Amendment	  	33
				
		  	14.8	  	Notices	  	33
				
		  	14.9	  	Assignment	  	34
				
		  	14.10	  	No Agency	  	34
				
		  	14.11	  	Construction	  	34
				
		  	14.12	  	Payment of Expenses	  	34
				
		  	14.13	  	Counterparts	  	34

  

 vi 

 LIST OF EXHIBITS, ATTACHMENT AND SCHEDULES 
  

			
	EXHIBITS	  	
		
	Exhibit A	  	General Assignment and Bill of Sale
	Exhibit B	  	Assignment and Assumption Agreement
	Exhibit C	  	Domain Name Assignment Agreement
	Exhibit D	  	Patent Assignment Agreement
	Exhibit E	  	Trademark Assignment Agreement
	Exhibit F	  	Transition Services Agreement
	Exhibit G	  	Form of Third Party Consent to Assignment of Assumed Contracts
	Exhibit H	  	Form of Third Party Notification Letter
		
	ATTACHMENTS	  	
		
	Attachment 1.42(a)	  	Product Specifications for bulk API
	Attachment 1.42(b)	  	Product Specification for Drug Product
	Attachment 1.44	  	List of Raw Materials and WIP
	Attachment 2.1(a)	  	List of Patents
	Attachment 2.1(b)	  	List of Licensed IP Rights
	Attachment 2.1(c)	  	List of Trademark Registrations
	Attachment 2.1(e)	  	List of Registrations
	Attachment 2.1(l)	  	List of Tangible Assets
	Attachment 2.1(m)	  	List of Domain Names
	Attachment 2.1(q)(1)	  	List of Shared Contracts
	Attachment 2.1(q)(2)	  	List of Assumed Contracts
	Attachment 4.2(a)	  	List of Third Party Consents
	Attachment 5.1(a)	  	Business Employees
	
	DISCLOSURE SCHEDULES
		
	Schedule 6.3	  	Consents and Approvals
	Schedule 6.4	  	Title to Assets
	Schedule 6.5	  	Patents
	Schedule 6.6	  	Trademarks
	Schedule 6.7	  	Registrations
	Schedule 6.8(a)	  	Default under Assumed Contracts and Shared Contracts
	Schedule 6.8(b)	  	Third Party Consents
	Schedule 6.9	  	Manufacturing
	Schedule 6.10	  	Registrations; Regulatory Matters
	Schedule 6.11	  	Regulatory Status of Product
	Schedule 6.12	  	Product Net Sales
	Schedule 6.14	  	Litigation
	Schedule 6.16(a)	  	Customers and Suppliers
	Schedule 6.16(b)	  	Notice from Customers and Suppliers
	Schedule 6.17	  	Inventory

			
	Schedule 6.18	  	Employees
	Schedule 6.19	  	Insurance
	Schedule 6.20	  	Packaging Inventory
	Schedule 6.21	  	Brokers and Finders (Seller)
		
	SCHEDULES	  	
		
	Schedule 7.6	  	Brokers and Finders (Buyer)
	Schedule 8.4	  	Shared Contracts

  

 ii 

 ASSET PURCHASE AGREEMENT 
 This Asset Purchase Agreement (this “Agreement”) is entered into as of December 14, 2007 (the “Effective Date”)
between PDL BioPharma, Inc., a Delaware corporation (“Seller”) and Otsuka Pharmaceutical Co., Ltd., a Japanese corporation (“Buyer”). 
 RECITALS 
 A. Seller owns certain rights and
assets related to the IV Busulfex® (busulfan) product. 
 B. Seller desires to
sell, and Buyer wishes to acquire, all right, title and interest in and to the Assets (as defined below) used in the Business (as defined below), upon the terms and conditions set forth in this Agreement, in exchange for consideration consisting of
cash and the assumption of certain Liabilities in connection with the Business, and other terms and conditions as set forth in this Agreement. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, and for
other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties to this Agreement agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 1.1 “Accounts Payable” shall mean all of Seller’s trade accounts payable, and all notes payable by Seller created or arising in respect of the Product. 
 1.2 “Accounts Receivable” shall mean all of Seller’s trade accounts receivable, and all notes receivable or evidences of
indebtedness payable to Seller created or arising in respect of the sale of the Product. 
 1.3 “Affiliate” with respect to
any party means any entity that is directly or indirectly controlling, controlled by or under common control with such party. 
 1.4
“API” shall mean the active pharmaceutical ingredient busulfan. 
 1.5 “Assets” shall have the meaning
given in Article 2. 
 1.6 “Assumed Contracts” shall have the meaning given in Section 2.1(q) and shall include the
agreements, purchase orders and change orders listed in Attachment 2.1(q)(2). 
 1.7 “Books and Records” shall mean
all pricing lists, material customer correspondence and related material books and records used solely and specifically with respect to the Business in the Territory by Seller or any of Seller’s Affiliates. 
  

 1 

 1.8 “Business” shall mean the business as conducted at the Closing Date by Seller of
using, making or having made, selling, marketing and supporting the Product. 
 1.9 “Buyer Indemnitee(s)” shall have the
meaning given in Section 13.2. 
 1.10 “Claim” shall have the meaning given in Section 13.3. 
 1.11 “Clinical Data” shall have the meaning given in Section 2.1(k). 
 1.12 “Closing” shall have the meaning given in Section 4.1. 
 1.13 “Closing Date” shall have the meaning given in Section 4.1. 
 1.14 “Closing Date Inventory Value Schedule” shall have the meaning given in Section 3.1. 
 1.15 “Confidential Information” shall have the meaning ascribed to it in the Confidentiality Agreement. 
 1.16 “Confidentiality Agreement” shall mean that certain Mutual Confidentiality Agreement between Buyer and Seller dated
September 6, 2007. 
 1.17 “Customer Orders” mean orders for Packaged Product from customers of Seller or any of
Seller’s Affiliates in the Territory. 
 1.18 “Drug Product” shall mean labeled or unlabelled vials containing API.

 1.19 “Effective Date” shall mean the date first set forth in the opening paragraph of this Agreement. 
 1.20 “Excluded Assets” shall have the meaning given in Section 2.2. 
 1.21 “Expiration Date” shall have the meaning given in Section 11.1. 
 1.22 “FDA” shall mean the United States Food and Drug Administration, or any successor agency or entity thereto that may be established
hereafter which has the responsibilities with respect to pharmaceutical products such as the Product. 
 1.23 “FD&C Act”
shall mean the Federal Food, Drug and Cosmetic Act, 21 USC § 321 et seq. 
 1.24 “Governmental Entity” shall
mean any court, tribunal, arbitrator, authority, agency, commission, regulatory, official or other instrumentality of the government of the United States or of any foreign country, any state or any political subdivision of any such government
(whether state, provincial, county, city, municipal or otherwise). 
 1.25 “HSR” shall mean the United States
Hart-Scott-Rodino Antitrust Improvements Act of l976, as amended, and related rules. 
  

 2 

 1.26 “IND” shall mean investigational new drug application number IND 46,232, initially
filed September 16, 1994. 
 1.27 “Knowledge” shall mean, whenever any representation or warranty is made by Seller or
Buyer “to the Knowledge” of the Seller or Buyer, (i) the actual knowledge of the officers of the Seller or Buyer, respectively, and (ii) the knowledge that any such person referenced in clause (i) hereof, as a prudent
business person, would have obtained in the usual course of the performance of his or her professional responsibilities to such party. 
 1.28 “Liabilities” shall mean liabilities of any kind or nature, primary or secondary, direct or indirect, absolute or contingent, known or unknown, liquidated or unliquidated, including but not limited to any liabilities
for claims of product liability, personal injury or death, liability in tort or contract (including unripened liabilities due to past actions or sales), indebtedness, and any FDA or other Governmental Entity action or notification, and all costs and
expenses (including reasonable attorneys’ fees), incurred in connection with the defense of any such claims. 
 1.29 “Licensed
IP Rights” shall have the meaning given in Section 2.1(b). 
 1.30 “Material Adverse Change” and
“Material Adverse Effect” shall mean any event or situation that has a material adverse change or effect, respectively, on the operations, assets, Liabilities, results of operations, cash flows or financial condition, or relations
with material customers or material suppliers, of the Business, taken as a whole, other than any such change or effect resulting from or arising in connection with (i) the announcement, performance or pendency of this Agreement or the
transactions contemplated hereby, (ii) changes or conditions affecting the pharmaceutical industry, generally, (iii) changes in economic, regulatory or political conditions generally, (iv) changes in financial markets, including
prevailing interest rates or market conditions; (v) developments or announcements, including product approvals and clinical trial results with respect to competitive or potentially competitive therapies or products, (vi) resignations or
departures of employees engaged in the Business, (vii) fluctuations in foreign currency exchange rates, (viii) any failure to meet internal or published projections, estimates or forecasts of revenues, earnings, development timelines or
other measures of financial or operating performance for any period, (ix) changes in applicable laws or interpretations thereof by Governmental Entities or (x) changes or effects that are the result of actions taken by Buyer that have an
effect on the Business. 
 1.31 “Marketing and Promotional Documents” shall have the meaning given in Section 2.1(i).

 1.32 “NDA” shall mean new drug application number NDA 20-954, initially approved February 4, 1999. 
 1.33 “Non Product-Specific Manufacturing Information” shall have the meaning given in Section 2.1(g). 
 1.34 “Non-U.S. Marketing Approvals” shall have the meaning given in Section 6.10. 
 1.35 “Notice of Objection” shall have the meaning given in Section 3.4. 
  

 3 

 1.36 “Packaged Product” shall mean Product in the Product Inventory purchased by Buyer
hereunder that is packaged and labeled for sale to the end user. 
 1.37 “Packaging Inventory” shall have the meaning given
in Section 2.1(o). 
 1.38 “Patents” shall have the meaning given in Section 2.1(a). 
 1.39 “Product” shall mean each presentation of any pharmaceutical preparation
(including formulation changes and production intermediates) containing the API, whether registered, marketed or in development by Seller, as of the Closing Date, including Product marketed under the name IV Busulfex® (busulfan). 
 1.40 “Product Inventory” shall mean all of the inventory owned by Seller of
bulk API, Packaged Product and Drug Product, in existence as of the Closing each of which shall have a remaining shelf-life of at least six (6) months as of the Closing Date. 
 1.41 “Product-Specific Manufacturing Information” shall have the meaning given in Section 2.1(f). 
 1.42 “Product Specifications” shall mean the specifications for bulk API, and for Drug Product, as set forth in Attachments 1.42
(a) and (b), respectively. 
 1.43 “Purchase Price” shall have the meaning given in Section 3.1. 

1.44 “Raw Materials and WIP” shall mean all of the raw materials and work in progress owned by Seller for use in the manufacture of
the Product, in existence as of the Closing, as identified in Attachment 1.44, each of which shall have a remaining shelf-life of at least six (6) months as of the Closing Date. 
 1.45 “Registrations” shall have the meaning given in Section 2.1(e). 
 1.46 “Research and Development Materials” shall have the meaning given in Section 2.1(h). 
 1.47 “SEC” shall mean the United States Securities and Exchange Commission. 
 1.48 “Seller Indemnitees” shall have the meaning given in Section 13.1. 
 1.49 “Shared Contracts” shall mean contracts and agreements to which Seller is a party which relate to the Product or the Business, but
also relate to other products and businesses of Seller. 
 1.50 “Tangible Assets” shall have the meaning given in
Section 2.1(l). 
 1.51 “Tax” and “Taxes” shall mean all present or future taxes, charges, fees,
levies, duties or other assessments including, without limitation, income, excise, property, value added, real estate, sales, payroll, transfer, social security and franchise taxes imposed by any federal, state, county, or local government, or a
subdivision or agency thereof. Such term shall include any interest, penalties, or additions payable in connection with such taxes, charges, fees, levies, duties, or other assessments. 
  

 4 

 1.52 “Territory” shall mean all the countries in the world. 
 1.53 “Third Party Accounting Firm” shall have the meaning given in Section 3.4. 
 1.54 “Trademarks” shall mean all trademarks, service marks, trade names, names, slogans, taglines, logos, design marks, trade dress,
product designs, and product packaging, including all applications for and registrations of the foregoing, and including those at common law that are related to the Product. 
 1.55 “Trademark Registrations” shall have the meaning given in Section 2.1(c). 
 1.56 “Transition Services Agreement” shall mean the agreement entered into by Buyer and Seller relating to the transition of the
Business, whereby Seller shall provide certain regulatory, supply chain management, intellectual property, product development and other services to Buyer, to the extent and for the periods of time and at the costs as specified therein. 

1.57 “Worldwide Safety Reports” shall have the meaning given in Section 2.1(j). 
 ARTICLE 2 
 TRANSFER OF ASSETS; LICENSE AND
SUBLICENSE 
 2.1 Purchase and Sale of Assets . Subject to the terms and conditions of this Agreement, Seller shall sell,
transfer, assign, convey, deliver, license or sublicense, as specified below, to Buyer; or shall cause to be sold, transferred, assigned, conveyed, delivered, licensed or sublicensed, as specified below, to Buyer, and Buyer shall acquire all of
Seller’s right, title and interest in and to the property and assets of Seller identified in this Section 2.1 (collectively, the “Assets”). 
 (a) Patents. Upon Closing, Seller shall sell, transfer, assign, convey and deliver; or shall cause to be sold, transferred,
assigned, conveyed and delivered to Buyer, all of Seller’s rights, title and interest in and to the patent filings listed in Attachment 2.1(a) (the “Patents”), including any patents of addition, re-examinations,
reissues, extensions, granted supplementary protection certifications, substitutions, confirmations, registrations, revalidations, revisions, additions and the like, of or to said Patents and any and all divisionals, continuations and
continuations-in-part, and any patents issuing therefrom. Seller hereby retains a royalty-free right and license, including the right to sublicense, under the Patents, solely to the extent necessary for, and solely for the purposes of, performing
Seller’s obligations under this Agreement and the Transition Services Agreement and only until the completion of Seller’s obligations hereunder and thereunder. 
 (b) Licensed IP and Know-How . Upon Closing, and Buyer’s assumption of the Assumed Contracts, Seller shall transfer, assign,
convey and deliver; or shall cause to be sold, transferred, assigned, conveyed and delivered to Buyer, all of Seller’s rights under the patent rights listed in Attachment 2.1(b) (the “Licensed IP Rights”), and all
of Seller’s rights under all patents, know how and other intellectual property rights contained in the license 

  

 5 

 
agreements included as part of the Assumed Contracts, subject to any restrictions and obligations in such license agreements. Seller hereby retains a
royalty-free right and license under the Licensed IP Rights for use in the Business, solely to the extent necessary for, and solely for the purposes of, performing Seller’s obligations under this Agreement and the Transition Services Agreement,
and only until the completion of Seller’s obligations hereunder and thereunder. 
 (c) Trademark Registrations .
Upon Closing, Seller shall sell, transfer, assign, convey and deliver; or shall cause to be sold, transferred, assigned, conveyed and delivered to Buyer, all of Seller’s rights, title and interest in and to the Trademarks, trademark
registrations and applications which are identified in Attachment 2.1(c), together with (i) all common law rights to the Trademarks, (ii) the goodwill of the Business symbolized by the Trademarks, (iii) all causes of actions,
claims and demands or other rights for, or arising from any infringement, dilution, unfair competition, or other violation, including past infringement, dilution, unfair competition, or other violation, of the Trademarks, and (iii) all rights
corresponding thereto throughout the world (the “Trademark Registrations”). No rights under any other names are transferred to Buyer hereunder. 
 (d) Copyrights . Upon Closing, Seller shall sell, transfer, assign, convey and deliver; or shall cause to be sold, transferred,
assigned, conveyed and delivered to Buyer, all of Seller’s rights, title and interest in and to the copyrights, including all related registrations, applications and common law rights, in any labels, product marketing materials or other
copyrighted works related to the Product and used in the Business. 
 (e) Registrations . Upon Closing, Seller shall
sell, transfer, assign, convey and deliver; or shall cause to be sold, transferred, assigned, conveyed and delivered to Buyer, solely to the extent saleable, transferable, assignable, conveyable or deliverable under applicable law, all of
Seller’s rights, title and interest in and to the regulatory files and approvals, registrations and governmental authorizations, each NDA, each IND, compliance notices, licenses and permits, and any applications to the FDA or the comparable
foreign law or bodies in effect or pending at the Closing Date, and all materials and information relating to the FDA and other Governmental Entity approvals for the Product in the Business held by Seller, the same being identified in Attachment
2.1(e), and all information contained therein (the “Registrations”). 
 (f) Product-Specific
Manufacturing Information . Upon Closing, Seller shall sell, transfer, assign, convey and deliver; or shall cause to be sold, transferred, assigned, conveyed and delivered to Buyer all of Seller’s rights, title and interest in and to all of
Seller’s manufacturing information (the “Product-Specific Manufacturing Information”) used solely and exclusively in the Business. Seller shall retain a non-exclusive license to use Product-Specific Manufacturing Information,
solely for purposes of fulfilling its obligations under this Agreement and the Transition Services Agreement, and only until completion of Seller’s obligations hereunder and thereunder. 
 (g) Non Product-Specific Manufacturing Information . Upon Closing, Seller shall grant, or shall cause to be granted to Buyer, a
perpetual, paid up, irrevocable, royalty-free, non-exclusive license, with the right to sublicense, to use, only in the Business, any manufacturing information that is used by Seller both in the Business and also in other business activities of
Seller (the “Non-Product Specific Manufacturing Information”). Seller shall retain a non-exclusive license to use Non-Product-Specific Manufacturing Information in other business activities of Seller. 
  

 6 

 (h) Research and Development Materials . Upon Closing, Seller shall sell or shall
cause to be sold, and shall promptly deliver or cause to be delivered to Buyer, copies of research and development reports and disclosure memoranda owned or controlled by Seller or its Affiliates and any of their respective agents, solely to the
extent relating exclusively to the Business (the “Research and Development Materials”). 
 (i) Marketing
and Promotional Documents . Upon Closing, Seller shall sell, or shall cause to be sold, and shall thereafter promptly deliver or cause to be delivered to Buyer, hard copies and an electronic copy existing and in use as of the Closing Date of the
marketing and promotional documents owned by Seller or its Affiliates, such as customer lists, marketing and promotional plans, documents and materials, field force training manuals and materials, and the like, solely to the extent relating
exclusively to the Business (the “Marketing and Promotional Documents”). Buyer’s use of the Marketing and Promotional Documents shall be subject to Section 10.6. 
 (j) Worldwide Safety Reports . Upon Closing, Seller shall sell, transfer, assign, convey and deliver or shall cause to be sold,
transferred, assigned, conveyed and delivered to Buyer, a copy of all worldwide safety reports in the possession of Seller or its Affiliates with respect to the API or the Product in existence as of the Closing (the “Worldwide Safety
Reports”). 
 (k) Clinical Data . Upon Closing, Seller shall sell, transfer, assign, convey and deliver or
shall cause to be sold, transferred, assigned, conveyed and delivered to Buyer, a copy of all clinical data contained in Seller’s databases referring to the API or the Product (the “Clinical Data”). 
 (l) Tangible Assets . Upon Closing, Seller shall sell, transfer, assign, convey and deliver or shall cause to be sold, transferred,
assigned, conveyed and delivered to Buyer, certain tangible assets, as listed in Attachment 2.1(l) (the “Tangible Assets”). 
 (m) Domain Names . Upon Closing, Seller shall sell, transfer, assign, convey and deliver or shall cause to be sold, transferred, assigned, conveyed and delivered to Buyer, all of Seller’s rights, title and
interest in and to the domain names listed in Attachment 2.1(m) (collectively, the “Domain Names”). 
 (n) Product Inventory . Upon Closing, Seller shall sell, transfer, assign, convey and deliver or shall cause to be sold, transferred, assigned, conveyed and delivered to Buyer, the Product Inventory. 
 (o) Packaging Inventory . Upon Closing, Seller shall sell, transfer, assign, convey and deliver or shall cause to be sold,
transferred, assigned, conveyed and delivered to Buyer, all packaging material for the Product, including all package labels and product inserts used in connection with the Product owned or controlled by Seller as of the Closing (the
“Packaging Inventory”). 
  

 7 

 (p) Raw Materials and WIP . Upon Closing, Seller shall sell, transfer, assign,
convey and deliver or shall cause to be sold, transferred, assigned, conveyed and delivered to Buyer, the Raw Materials and WIP. 
 (q) Assumed Contracts . Upon Closing, except as otherwise provided in Section 8.4 with respect to the Shared Contracts listed in Attachment 2.1(q)(1), Seller shall sell, transfer, assign, convey and deliver or shall cause
to be sold, transferred, assigned, conveyed and delivered to Buyer, all rights and benefits of Seller in existence as of the Closing Date arising after the Closing Date under the contracts listed in Attachment 2.1(q)(2) (the “Assumed
Contracts”), including, any intellectual property rights therein. 
 (r) Books and Records . Upon Closing,
Seller shall deliver to Buyer, copies of all Books and Records. 
 (s) Customer Orders . Upon Closing, Seller shall
sell, transfer, assign, convey and deliver or shall cause to be sold, transferred, assigned, conveyed and delivered to Buyer, all unfilled Customer Orders as of the Closing Date (i.e. Customer Orders to the extent that (i) the Packaged Products
at issue have not been shipped to the applicable customer as of the Closing Date and (ii) Buyer (rather than Seller or any of its Affiliates) would be paid by the applicable customer after shipment by Buyer following the Closing Date), a list
of which shall be provided to Buyer within ten (10) business days after the Closing Date. 
 2.2 Excluded Assets . Buyer hereby
acknowledges that Seller is not transferring hereunder any assets, rights or interests of Seller (collectively, the “Excluded Assets”) not specifically set forth in Section 2.1, including, without limitation: 
 (a) any contracts or agreements with any third party that are not Assumed Contracts; 
 (b) any assets or rights used solely in the research, development, manufacture, control, packaging or release, marketing or sale of
products other than the Product; 
 (c) any assets or rights, including without limitation, technical information and
intellectual property, that are not used exclusively in the Business and are used in other business activities of Seller; provided that Seller’s failure to sell and transfer such assets or rights to Buyer would not have any adverse effect on
Buyer’s ability to operate the Business; 
 (d) equipment, computer software, and computer hardware, except as listed on
Attachment 2.1(l); 
 (e) all Accounts Receivable arising prior to the Closing Date; and 
 (f) Corporate records (financial records, internal correspondence, formation documents, stock records, board resolutions and minutes, and
the like). 
 2.3 Assumed Liabilities . Buyer shall assume and agree to honor, pay and discharge when due only the following
Liabilities of Seller (the “Assumed Liabilities”): 
  

 8 

 (a) all Liabilities of Seller under the Assumed Contracts, but only to the extent such
Liabilities arise from any event, circumstance or condition occurring after the Closing Date; 
 (b) all Liabilities of Seller
under the Registrations to be performed on or after the Closing Date, but only to the extent such Liabilities relate to any event, circumstances or conditions occurring after the Closing Date; and 
 (c) all other Liabilities solely to the extent such Liabilities are incurred or relate to actions or activities occurring after the
Closing Date (other than the Excluded Liabilities listed in Section 2.4) arising out of or related to the Assets, including, without limitation, any product liability, product warranty, product return, charge-back, rebate or Medicaid, Medicare
or other reimbursements, or similar claim, related to the Product sold after the Closing Date. 
 2.4 Excluded Liabilities . The
Excluded Liabilities shall remain the sole responsibility of and shall be retained, paid, performed and discharged solely by Seller. The “Excluded Liabilities” shall mean every Liability of Seller other than the Assumed Liabilities,
including, without limitation: 
 (a) all Taxes that result from or have accrued in connection with the operation of the
Business prior to the Closing Date; 
 (b) any Liability or obligation of Seller of any nature owed to any employees,
directors, former employees, agents or independent contractors, whether or not employed by Buyer after the Closing, that (A) arises out of or relates to the employment or service provider relationship between Seller and any such individual(s)
(including, but not limited to, claims for compensation, discrimination, harassment, or retaliation); or (B) arises out of or relates to events or conditions occurring on or before the Closing Date (including the transactions contemplated by
this Agreement); 
 (c) all Accounts Payable arising prior to the Closing Date; 
 (d) Liabilities of Seller relating to actions or activities of Seller or its Affiliates or any of their respective employees or agents
relating to the Business that occurred prior to the Closing Date; 
 (e) Liabilities of Seller under the Assumed Contracts
that were incurred or arose prior to the Closing Date; 
 (f) Liabilities of Seller under the Shared Contracts that relate to
products or businesses of Seller other than the Product or the Business or that arose prior to the Closing Date; and 
 (g)
Liabilities of Seller relating to or arising under this Agreement. 
 2.5 Risk of Loss . All risk of loss with respect to the Assets
(whether or not covered by insurance) shall be on Seller up to the time of Closing, whereupon such risk of loss shall pass to Buyer. 
  

 9 

 2.6 Taxes . All applicable sales, transfer, documentary, use, stamp, filing, recording,
conveyance, excise, mortgage, intangible, documentary recording taxes and other taxes and fees that may be levied on the sale, assignment, transfer or delivery of the Assets to be sold and transferred as provided in this Agreement shall be borne by
the parties equally. The parties shall cooperate with each other and use commercially reasonable efforts to minimize such Taxes. 
 ARTICLE 3

 CONSIDERATION 
 3.1
Purchase Price . On the Closing Date, in consideration of Seller’s sale of the Assets to Buyer, Buyer will assume the Assumed Liabilities and pay to Seller an aggregate purchase price in the amount equal to Two Hundred Million Dollars
($200,000,000) plus a payment equal to Seller’s cost of goods as determined using Seller’s internal accounting practice and specified in a schedule (the “Closing Date Inventory Value Schedule”) to be provided by Seller to
Buyer three (3) days prior to Closing for all Product Inventory and Raw Materials and WIP, as may be adjusted pursuant to Section 3.4 hereof (collectively, the “Purchase Price”). 
 3.2 Method of Payment . The payment to be made pursuant to Section 3.1 shall be made by wire transfer in immediately available funds to such
account as Seller shall have designated to Buyer in writing not less then two (2) business days prior to the Closing Date, and any such payment shall be deemed to have been paid when recorded in the proper account. 
 3.3 Allocation of Purchase Price . Prior to Closing, Buyer and Seller will make reasonable efforts to agree on an allocation of the Purchase Price
among the Assets in a manner that is consistent with the principles of Section 1060 of the Internal Revenue Code of 1986, as amended, or any successor provision of any future tax law, or any comparable provision of state, local or foreign tax
law. Buyer and Seller will (i) act in accordance with the allocation in the preparation of financial statements and the preparation and filing of all Tax returns (including the preparation and filing of IRS Form 8594) and (ii) take no
position inconsistent with the allocation for all Tax purposes, unless required to do so by a taxing authority. In the event that such allocation is disputed by any taxing authority, the party receiving notice of the dispute shall promptly notify
the other party hereto and shall forward to such other party copies of all correspondence with such taxing authority in respect of such disputed allocation. 
 3.4 Product Inventory, Raw Materials and WIP Adjustment . During the thirty (30) day period following the Closing Date, Buyer shall be permitted to review Seller’s Books and Records reasonably
necessary for the preparation of the Closing Date Inventory Value Schedule. The Closing Date Inventory Value Schedule shall become final and binding upon Buyer and Seller at the end of such thirty (30) day period, unless Buyer objects to the
Closing Date Inventory Value Schedule, in which case it shall send written notice (the “Notice of Objection”) to Seller within such period, setting forth in specific detail the basis for its objection and its proposal for any
adjustments to the Closing Date Inventory Value Schedule. If a timely Notice of Objection is received by Seller, then the Closing Date Inventory Value Schedule shall become final and binding (except as provided below with respect to resolution of
disputes) on Seller and Buyer on the first to occur of (i) the date Seller and Buyer resolve in writing any differences they have with respect to the matters specified in the Notice of Objection and (ii) the date all matters in dispute are
finally resolved in writing by the Third Party Accounting Firm (as defined below), 

  

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in each case as provided below. Seller and Buyer shall seek in good faith to reach agreement as to any such proposed adjustment or that no such adjustment is
necessary within ten (10) days following receipt of the Notice of Objection. If agreement is reached in writing within such ten (10) day period as to all proposed adjustments, or that no adjustments are necessary, the parties shall revise
and finalize the Closing Date Inventory Value Schedule accordingly. If Seller and Buyer are unable to reach agreement within ten (10) days following receipt of the Notice of Objection, then such certified public accounting firm of national
reputation other than the auditors of Seller and Buyer as agreed upon by Seller and Buyer (the “Third Party Accounting Firm”) shall be engaged at that time to review the Closing Date Inventory Value Schedule, and shall make a
determination as to the resolution of any adjustments. The determination of the Third Party Accounting Firm shall be delivered as soon as practicable following engagement of the Third Party Accounting Firm, but in no event more than thirty
(30) days thereafter, and shall be final, conclusive and binding upon Seller and Buyer and the parties shall revise the Closing Date Inventory Value Schedule accordingly. Seller, on the one hand, and Buyer, on the other hand, shall each pay
one-half of the cost of the Third Party Accounting Firm. Within ten (10) days of the date on which the Closing Date Inventory Value Schedule becomes final and binding on Seller and Buyer, Buyer shall pay Seller the difference between the amount
paid by Buyer as set forth on the Closing Date Inventory Value Schedule on the Closing Date and the final Closing Date Inventory Value Schedule to Seller as adjusted pursuant to this Section 3.4, if positive, and Seller shall pay such
difference to Buyer, if negative. Any payment to be made pursuant to this Section 3.4 shall be made by wire transfer in immediately available funds to such account as the party receiving the payment shall have designated to other party in
writing not less than two (2) business days prior to the date of such payment. Any payment pursuant to this Section 3.4 shall be an adjustment to the Purchase Price. 
 ARTICLE 4 
 CLOSING 
 4.1 Closing . The Closing of the sale of the Assets and the consummation of the other transactions contemplated hereby shall be held at the
offices of Seller (the “Closing”) as promptly as practicable, but no later than the date five (5) business days after all conditions (other than the respective delivery obligations of the parties) hereto have been satisfied or
waived, or at such other time or date as may be agreed to by the parties to this Agreement (the “Closing Date”). 
 4.2
Actions at Closing . At the Closing, transfer of the Assets to Buyer will be effected by Seller pursuant to such good and sufficient instruments of conveyance, transfer and assignment as shall be necessary to transfer to Buyer good and valid
title to the Assets. 
 (a) Deliveries by Seller at Closing. The purchase of the Assets by Buyer in accordance with the
terms of this Agreement are subject to Seller’s delivery to Buyer at the Closing of the following instruments, documents, agreements and certificates: 
 i. the General Assignment and Bill of Sale substantially in the form attached hereto as Exhibit A (the “Bill of Sale”), duly executed by Seller; 
  

 11 

 ii. a counterpart of the Assignment and Assumption Agreement substantially in the form
attached hereto as Exhibit B (the “Assignment and Assumption Agreement”), duly executed by Seller; 
 iii. the Domain Name Assignment Agreement substantially in the form attached hereto as Exhibit C (the “Domain Name Assignment Agreement”), duly executed by Seller; 
 iv. the Patent Assignment Agreement substantially in the form attached hereto as Exhibit D (the “Patent Assignment
Agreement”), duly executed by Seller; 
 v. the Trademark Assignment Agreement substantially in the form attached
hereto as Exhibit E (the “Trademark Assignment Agreement”), duly executed by Seller; 
 vi. a
counterpart of the Transition Services Agreement substantially in the form attached hereto as Exhibit F, duly executed by Seller; 
 vii. the Product-Specific Manufacturing Information, the Non-Product Specific Manufacturing Information, and an unredacted, fully executed copy of each of the Assumed Contracts and the Shared Contracts; 
 viii. the Third Party Consents in substantially the form attached hereto as Exhibit G signed by the parties set forth in
Attachment 4.2(a); 
 ix. such other documents and agreements as may be necessary to effect the transactions
contemplated by this Agreement; 
 x. a certificate executed by a duly authorized officer of Seller certifying that
(i) each of the representations and warranties of Seller set forth in Article 6 that is not subject to materiality qualifications was true and correct in all material respects at and as of the Closing Date as though then made and as though the
Closing Date had been substituted for the Effective Date of this Agreement throughout such representations and warranties (without taking into account any disclosures by Seller of discoveries, events or occurrences arising on or after the Effective
Date), except that any such representation or warranty made as of a specified date (other than the Effective Date) shall only need to have been true on and as of such date, (ii) each of the representations and warranties of Seller set forth in
Article 6 that is subject to materiality qualifications was true and correct in all respects at and as of the Closing Date as though then made and as though the Closing Date had been substituted for the Effective Date of this Agreement throughout
such representations and warranties (without taking into account any disclosures by Seller of discoveries, events or occurrences arising on or after the Effective Date), except that any such representation or warranty made as of a specified date
(other than the Effective Date) shall only need to have been true on and as of such date and (iii) all of the terms, covenants and conditions of this Agreement to be complied with and performed by Seller, at or prior to the Closing have been
duly complied with and performed in all material respects (the “Seller Compliance Certificate”); and 
 xi. a
certificate of the Secretary of Seller, in form and substance reasonably satisfactory to Buyer, as to the authenticity and effectiveness of the actions of the 

  

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board of directors of Seller authorizing this Agreement and the transactions contemplated in this Agreement. 
 (b) Deliveries by Buyer at Closing. The sale of the Assets by Seller in accordance with the terms of this Agreement are subject to
Buyer’s delivery to Seller at the Closing of the following instruments, agreements and certificates: 
 i. the Purchase
Price. 
 ii. a counterpart of the Assignment and Assumption Agreement, duly executed by Buyer; 
 iii. a counterpart of the Transition Services Agreement, duly executed by Buyer; 
 iv. a certificate executed by a duly authorized officer of Buyer certifying that (i) each of the representations and warranties of
Buyer set forth in Article 7 that is not subject to materiality qualifications was true and correct in all material respects at and as of the Closing Date as though then made and as though the Closing Date had been substituted for the Effective Date
of this Agreement throughout such representations and warranties (without taking into account any disclosures by Buyer of discoveries, events or occurrences arising on or after the Effective Date), except that any such representation or warranty
made as of a specified date (other than the Effective Date) shall only need to have been true on and as of such date, (ii) each of the representations and warranties of Buyer set forth in Article 7 that is subject to materiality qualifications
was true and correct in all respects at and as of the Closing Date as though then made and as though the Closing Date had been substituted for the Effective Date of this Agreement throughout such representations and warranties (without taking into
account any disclosures by Buyer of discoveries, events or occurrences arising on or after the Effective Date), except that any such representation or warranty made as of a specified date (other than the Effective Date) shall only need to have been
true on and as of such date, and (iii) all of the terms, covenants and conditions of this Agreement to be complied with and performed by Buyer, at or prior to the Closing have been duly complied with and performed in all material respects (the
“Buyer Compliance Certificate”); and 
 v. a certificate of the Secretary of Buyer, in form and substance
reasonably satisfactory to Seller, as to the authenticity and effectiveness of the actions of the board of directors (and shareholders, if applicable) of Buyer authorizing this Agreement and the transactions contemplated in this Agreement.

 ARTICLE 5 
 EMPLOYMENT
MATTERS 
 5.1 Employees . 
 (a) Notwithstanding the provisions of the Confidentiality Agreement, Buyer shall have the right prior to Closing to contact the employees of Seller currently employed in the Business, who are identified on
Attachment 5.1(a) (each, a “Business Employee”), and to discuss possible terms of employment with such Business Employees and Buyer may make offers of 

  

 13 

 
employment, contingent on the Closing, to any of such Business Employees in its discretion. Buyer shall deliver to Seller a list of the Business Employees to
whom Buyer has or intends to make offers of employment (each, an “Identified Employee”) at least fifteen (15) days prior to the date of the Closing. 
 (b) Seller shall take all action necessary to give any notification required by the Worker Adjustment and Retraining Notification Act
(“WARN”), comply with any requirements of the Consolidated Omnibus Budget Reconciliation Act of 1985 and pay any and all severance, vacation, paid time off, unpaid wages, unpaid bonuses, unpaid commissions or other sums that may be
due to Business Employees in connection with their termination of employment with Seller, if any, or otherwise pursuant to the terms of any of Seller’s employee benefit plan. Buyer shall provide to Seller in a timely manner any information
reasonably necessary to determine whether an Identified Employee has been offered employment in a comparable position and such other information as is reasonably necessary for Seller to comply with its obligations, if any, under WARN or any similar
state law, rule or regulation with respect to Seller’s termination of the employment of any Business Employees. 
 ARTICLE 6 

REPRESENTATIONS AND WARRANTIES OF SELLER 
 Subject to the exceptions and disclosures listed in the Disclosure Schedule, Seller represents and warrants to Buyer with respect to the Assets as set forth in this Article 6. The Disclosure Schedule modifies, varies and qualifies the
representations and warranties contained in this Article 6, and there shall be no breach or deemed breach of any of such representations or warranties in respect of any of the matters disclosed in the Disclosure Schedule (including the attachments
and exhibits thereto). Subject to the foregoing and except as set forth in the Disclosure Schedule attached hereto, Seller represents and warrants to Buyer as of the Effective Date as follows: 
 6.1 Organization and Authority . Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of
Delaware with full corporate power and authority to execute and consummate this Agreement, and such other instruments, agreements and transactions as may be contemplated hereunder and thereunder. Seller has all requisite corporate power and
authority and all authorizations, licenses, permits and certifications necessary to carry on the Business as now being conducted and to own, lease and operate the Assets. Seller is qualified as a foreign corporation to do business in every
jurisdiction in which the nature of its business or its ownership of property requires it to be qualified and in which the failure to be so qualified would have a Material Adverse Effect. All corporate acts and other proceedings required to be taken
by or on the part of Seller to authorize Seller to execute, deliver and perform this Agreement and such other instruments, agreements and transactions as may be contemplated hereunder, have been duly and properly taken. This Agreement has been duly
executed and delivered by Seller and constitutes legal, valid and binding obligations of Seller enforceable in accordance with its terms, except as such enforceability may be subject to or limited by (i) applicable bankruptcy, reorganization,
insolvency, moratorium and similar laws affecting the enforcement of creditors’ rights generally and (ii) the rules governing the availability of specific performance, injunctive relief or other equitable remedies and general principles of
equity, regardless of whether considered in a proceeding in law or equity. 
  

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 6.2 No Violation or Conflict . The execution and delivery by Seller of this Agreement and such
other instruments, agreements and transactions as may be contemplated hereunder, and the consummation by Seller of the transactions contemplated hereby and thereunder will not (i) violate any law, statute, rule or regulation or judgment, order,
writ, injunction or decree of any Governmental Entity applicable to Seller, or (ii) conflict with, result in any breach of, or constitute a default (or an event which with notice or lapse of time or both would become a default) under the
Certificate of Incorporation or bylaws of Seller or any agreement to which Seller is a party, except for such violations, conflicts, breaches or defaults which individually or in the aggregate have not had and would not reasonably be expected to
have a Material Adverse Effect, or (iii) materially interfere with Seller’s performance of its obligations hereunder or Buyer’s ability to own the Assets or operate the Business. 
 6.3 Consents and Approvals . Except as set forth in Schedule 6.3 of the Disclosure Schedule, no notice to, declaration, filing or
registration with, or authorization, consent or approval of, or permit from, any Governmental Entity, or any other person or entity, is required to be made or obtained by Seller in connection with the execution, delivery and performance of this
Agreement and the consummation of the transactions contemplated hereby, except with respect to the HSR Filing and any declarations, filings, registrations, authorizations, consents, approvals or permits which if not obtained or made have not had and
would not reasonably be expected to have individually or in the aggregate a Material Adverse Effect or materially interfere with Seller’s performance of its obligations hereunder or Buyer’s ability to own the Assets or operate the
Business. 
 6.4 Title to Assets . Seller has good, valid and marketable title to all the Assets, and Seller shall sell, assign,
transfer, convey and deliver good, valid and marketable title at Closing, free and clear of any and all liens, encumbrances, charges, claims, pledges, or security interests of any kind (including those of secured parties). Except as set forth in
Schedule 6.4 of the Disclosure Schedule, Seller beneficially owns all of the right, title or other interests to be transferred to Buyer hereunder with respect to all the Assets, and none of the Assets is leased, rented, licensed, or otherwise
not owned by Seller. 
 6.5 Patents . Seller has the right to assign to Buyer the licenses and rights required to be assigned to Buyer
under the Licensed IP Rights pursuant to Section 2.1(b). To the Knowledge of Seller, there are no claims, demands, or proceedings instituted pending or threatened in writing by any party pertaining to or challenging any Patent or any patent
included within the Licensed IP Rights. The Patents and the patents included within the Licensed IP Rights, constitute all of the patents required by Seller to operate the Business as operated by Seller on the Effective Date. To the Knowledge of
Seller, the inventorship of the patents and patent applications within the Licensed IP Rights is true and correct as of the Effective Date. To the Knowledge of Seller, there are no unlicensed third party patents that cover technology used in the
Business (the “Technology”). Seller has not received any warnings, written or oral, nor is it aware that the Technology infringes any third party patent rights. Seller has an exclusive license to the Licensed IP Rights for the
Territory, except for Australia. Except as set forth in Schedule 6.5 of the Disclosure Schedule, to the Knowledge of Seller, there is no law, contract or arrangement that would prevent Seller from assigning the Licensed IP Rights to Buyer or
that would interfere with Buyer’s use of such Licensed IP Rights or its ability to operate the Business. To the Knowledge of Seller, the Patent and Technology License Agreement, dated as 

  

 15 

 
of February 4, 1994, between Orphan Medical and the University of Texas and the University of Houston listed on Attachment 2.1(q)(2), and the
patents licensed under such agreement are not subject to the provisions of the Bayh-Dole Act of 1980, as amended. 
 6.6 Trademarks .
Seller owns the Trademarks set forth on Attachment 2.1(c). All Trademarks have been duly maintained by Seller. There are no claims, demands, or proceedings instituted, pending or, to the Knowledge of Seller, threatened in writing by any third
party pertaining to or challenging the Trademark Registrations and Domain Names. Except as set forth in Schedule 6.6 of the Disclosure Schedule, there are no settlement agreements, coexistence agreements, consents, licenses, assignments,
security agreements, judgments, consent decrees or judicial or administrative decisions relating to the Trademark Registrations and Domain Names. The Trademarks constitute all of the trademarks required by Seller to operate the Business as it is
operated by Seller on the Effective Date. 
 6.7 Registrations . All Registrations held by Seller in the Territory with respect to the
Product are listed on Attachment 2.1(e). The Registrations are in the name of Seller. The Seller has or, with respect to the distribution or sale of the Product in jurisdictions in the Territory outside the United States and Canada, to the
Knowledge of Seller, Seller’s agents, have all licenses, permits, approvals, qualifications, authorizations or requirements of any Governmental Entity in the Territory required by Seller to operate the Business as operated by Seller immediately
prior to the Effective Date. 
 6.8 Assumed Contracts . The Assumed Contracts and the Shared Contracts are set forth on Attachment
2.1(q)(2) and Attachment 2.1(q)(1), respectively. Seller has made available to Buyer complete and correct copies of the Assumed Contracts and the Shared Contracts. All the Assumed Contracts and Shared Contracts are in full force and
effect and are valid, binding and enforceable in accordance with their terms by and against Seller, except as such enforceability may be subject to or limited by (i) applicable bankruptcy, reorganization, insolvency, moratorium and similar laws
affecting the enforcement of creditors’ rights generally; and (ii) the rules governing the availability of specific performance, injunctive relief or other equitable remedies and general principles of equity, regardless of whether
considered in a proceeding in law or equity; provided that there may be Assumed Contracts that have expired by their terms, but contain surviving rights or Liabilities that will be assumed by Buyer as provided in Section 2.3. There is not,
under any of the Assumed Contracts or any of the Shared Contracts, any existing breach, default or event of default by Seller, except for declarations, filings, registrations, authorizations, consents, approvals or permits which if not obtained or
made have not had and would not reasonably be expected to have individually or in the aggregate a Material Adverse Effect or materially interfere with Buyer’s ability to own the Assets or operate the Business. Schedule 6.8 of the
Disclosure Schedule sets forth a list of all Assumed Contracts which require the consent or waiver of any party to such Assumed Contract as a result of the transactions contemplated hereby (the “Third Party Consents”). The Assumed
Contracts and the Shared Contracts constitute all of the contracts required by Seller to operate the Business as operated by Seller on the Effective Date. 
 6.9 Manufacturing . The manufacturing agreements listed in Schedule 6.9(a) of the Disclosure Schedule constitute all of the supply and manufacturing agreements related to the Product and the Business.
Except as set forth in Schedule 6.9(b) of the Disclosure Schedule, 

  

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Seller has not received any notice, and is not aware of any facts, including without limitation those related to actions or threatened actions by any
Governmental Entity, that would cause it to believe, that (i) any of such supply and manufacturing agreements will terminate or (ii) supply of API or Product will be interrupted or terminated. 
 6.10 Registrations; Regulatory Matters . Schedule 6.10 of the Disclosure Schedule sets forth all marketing approvals or pricing approvals
in jurisdictions outside the United States relating to the Product which are not owned by Seller or its Affiliates (the “Non-U.S. Marketing Approvals”). All of the Registrations set forth on Attachment 2.1(e) and the Non-U.S.
Marketing Approvals set forth in Schedule 6.10 are valid and in full force and effect as of the Effective Date. Seller has furnished Buyer with access to a complete copy of the NDA, including all amendments and supplements thereto, and has
provided Buyer with opportunity to review and evaluate the NDA and its regulatory status. Each of the NDA, Registrations and Non-U.S. Marketing Approvals has been approved by the FDA or other relevant Governmental Entity, as the case may be, and
each of the NDA, Registrations and Non-U.S. Marketing Approvals is in good standing with the FDA or other relevant Governmental Entity, as the case may be. The NDA and Registrations in Attachment 2.1(e) are owned exclusively by Seller. All of
the Non-U.S. Marketing Approvals are owned by distributors of Seller and Seller has the rights to each such Non-U.S. Marketing Approval as provided in the relevant distribution agreement included within the Assumed Contracts. There is no action or
proceeding by any Governmental Entity pending or, to the Knowledge of Seller as of the Closing Date, threatened seeking the revocation or suspension of any NDA, Registration or Non-U.S. Marketing Approval relating to the manufacture or sale of the
marketed Product in the Territory. 
 6.11 Regulatory Status of Product . There have been no recalls, withdrawals, or market
replacements of the Product in the Territory in the past two (2) years. 
 6.12 Product Net Sales . Seller’s net sales of
Product as set forth on Schedule 6.12, for the periods specified in Schedule 6.12 are accurate and were determined in accordance with United States generally accepted accounting principles, consistently applied. 
 6.13 Violations of Law . The utilization of the Assets and the conduct of the Business by Seller and its Affiliates and their respective agents
and employees do not violate any applicable law, governmental specification, authorization or requirement or any decree, judgment, order or similar restriction binding on the Seller or any of its Affiliates in any material respect. Seller has not
received notice of any Governmental Entity investigation, claim or proceeding concerning compliance matters relating to the Product or the Business, or the business practices of Seller or any of its Affiliates or any of their respective agents or
employees, including without limitation business practices related to the pricing, promotion and manufacturing of the Product. 
 6.14
Litigation . Neither the Assets, the Product nor the Business is the subject of any outstanding judgment, order, writ, injunction or decree of any court, arbitrator or administrative or Governmental Entity limiting, restricting or affecting
the Assets, the Product or the Business in any material aspect. Except as set forth on Schedule 6.14, there are no claims, suits, proceedings pending or, to the Knowledge of Seller, threatened in writing against Seller or any 

  

 17 

 
of its Affiliates or any of their respective agents or employees with respect to the Assets, Product, Business or transactions contemplated in this
Agreement. 
 6.15 Taxes . As of the Effective Date, there are no, and, at the Closing, there will not be, any liens for Taxes accrued
upon the Assets prior to the Closing. Any and all Taxes related to the Business, to the extent accrued prior to the Closing, have been or will be, when due, paid by Seller. 
 6.16 Customers and Suppliers . Schedule 6.16(a) of the Disclosure Schedule lists the ten (10) largest customers and suppliers of
Seller relating to the Business for the fiscal year ended December 31, 2006 and for the ten-month period ended October 31, 2007 and sets forth opposite the name of each such customer or supplier the approximate percentage of gross sales
attributable from such customers or cash payments attributable to such suppliers, and unit sales for each such customer, for each such period, and with respect to the customers, the portion of the Territory covered by such customer. Except as set
forth on Schedule 6.16(b), since December 31, 2006, no customer or supplier listed on Schedule 6.16(a) of the Disclosure Schedule has advised in writing that it will stop or materially decrease the rate of business done with
Seller except for changes in the ordinary course of Seller’s business. 
 6.17 Inventory . The Product Inventory, Raw Materials
and WIP relating to the Business consists of items of a quality and quantity usable and, with respect to finished goods only, salable at the Seller’s normal profit levels, in each case, in the ordinary course of the business. Seller’s
inventory of finished goods generated by the Business is not slow-moving as determined in accordance with past practices, obsolete or damaged and is merchantable and fit for its particular use. Seller has on hand or has ordered and expects timely
delivery of such quantities of Raw Materials and has on hand such quantities of WIP and Product Inventory as are reasonably required timely to fill current orders on hand with respect to the Business which require delivery within sixty
(60) days and to maintain the manufacture and shipment of products at its normal level of operations. Schedule 6.17 of the Disclosure Schedule contains a materially complete and accurate summary of the Product Inventory, Raw Materials
and WIP relating to the Business as of October 31, 2007. Sales of the Product by Seller to its distributors and licensees during the ten-month period ended October 31, 2007 were made consistent with past practices and were not the result
of any special or extraordinary sales efforts or promotions by Seller or such distributors and licensees. The level of inventory of the Product held by Seller’s distributors and licensees as of the Effective Date is consistent with practice in
effect prior to December 31, 2006 and Seller has no reason to believe that such inventory will be subject to returns, discounts or charge-backs that are materially different than those experienced prior to December 31, 2006. 
 6.18 Employees . The Business Employees listed in Attachment 5.1(a) are all the employees of Seller whose efforts and responsibilities are
material to the Business. Except as set forth in Schedule 6.18 of the Disclosure Schedule: (a) to the Knowledge of Seller, no Business Employee of Seller and no group of the Seller’s Business Employees has any plans to terminate his
or her employment; (b) to the Knowledge of Seller, Seller has complied with all laws relating to the employment of labor, including provisions thereof relating to wages, hours, equal opportunity, collective bargaining and the payment of social
security and other taxes; (c) Seller has no material labor relations problem pending relating to the Business Employees and its labor 

  

 18 

 
relations relating to the Business Employees are satisfactory; (d) there are no workers’ compensation claims pending against Seller relating to a
Business Employee nor is Seller aware of any facts that would give rise to such a claim; (e) to the Knowledge of Seller, no Business Employee of Seller is subject to any secrecy or non-competition agreement or any other agreement or restriction
of any kind that would impede in any way the ability of such employee to carry out fully all activities of such employee in furtherance of the Business; and (f) no Business Employee or former employee of Seller has any claim with respect to any
intellectual property rights of Seller. Schedule 6.18 of the Disclosure Schedule lists, as of the date set forth in the Disclosure Schedule, each Business Employee of Seller and the position, title, remuneration (including any scheduled
salary or remuneration increases), date of employment and accrued vacation pay of each such Business Employee. 
 6.19 Insurance .
Schedule 6.19 of the Disclosure Schedule lists and briefly describes each insurance policy maintained by Seller with respect to the Assets and operations of the Business and sets forth the date of expiration of each such insurance policy. All
of such insurance policies are in full force and effect and are issued by insurers of recognized responsibility. Seller is not in default with respect to its obligations under any of any insurance policies relating to the Assets or the Business.

 6.20 Packaging Inventory . Schedule 6.20 of the Disclosure Schedule lists all of the Packaging Inventory owned by Seller as
of the Effective Date. 
 6.21 Brokers and Finders . Except as set forth in Schedule 6.21 of the Disclosure Schedule, Seller
has not employed any broker or finder or incurred any Liability for any brokerage fee, commission or finder’s fee in connection with the transactions contemplated by this Agreement. 
 6.22 Sufficiency . The Assets together with the Assumed Contracts and Buyer’s rights under this Agreement constitute all of the material
assets that are necessary for Buyer to operate the Business as of and after the Closing Date in substantially the same manner as the Business was operated by Seller (and Seller’s Affiliates) for the two (2) years prior to the Closing Date.
The Product Specific-Manufacturing Information and the Non Product-Specific Manufacturing Information are all the information required to manufacture the Product and no person other than Seller has any rights to the Product Specific-Manufacturing
Information and the Non Product-Specific Manufacturing Information. The Research and Development Materials are all of the reports and disclosure memoranda owned or controlled by Seller or its Affiliates that are necessary for the Business as of the
Closing Date. The Marketing and Promotional Documents are all the documents owned by Seller or its Affiliates that are used in the marketing and promotion of the Product as of the Closing Date. The Tangible Assets are all of the tangible assets used
by Seller to operate the Business as of the Closing Date. 
 6.23 No Implied Warranty . THE REPRESENTATIONS AND WARRANTIES GIVEN
HEREIN BY SELLER ARE IN LIEU OF ANY IMPLIED WARRANTIES WHICH MAY OTHERWISE BE APPLICABLE BECAUSE OF THE PROVISIONS OF THE UNIFORM COMMERCIAL CODE OR ANY OTHER STATUTE, INCLUDING, WITHOUT LIMITATION, THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
A PARTICULAR PURPOSE. Seller makes no representation or warranty with respect to (i) any 

  

 19 

 
forecasts, projections, estimates or budgets delivered or made available to Buyer of future revenues, future results of operations (or any component
thereof), future cash flows or future financial condition (or any component thereof) of the Business or (ii) any other information or documents made available to Buyer or its counsel, accountants or advisors with respect to the Business, except
as expressly set forth in this Agreement or the exhibits hereto; provided that Seller does represent and warrant that it has not intentionally provided or made available to Buyer any untrue information, nor omitted any information, of a material
fact regarding the Assets, the Product or the Business or any of the other matters dealt with in this Article 6 relating to Seller or the transactions contemplated by this Agreement. 
 ARTICLE 7 
 REPRESENTATIONS AND WARRANTIES OF BUYER 
 Buyer represents and warrants to Seller as of the Effective Date as follows: 
 7.1 Organization and Authority . Buyer is a corporation duly organized, validly existing and in good standing under the laws of Japan. Buyer has
full corporate power and authority to execute and deliver this Agreement and such other instruments, agreements and transactions as may be contemplated hereunder, and to perform its obligations hereunder and thereunder. All corporate acts and other
proceedings required to be taken by or on the part of Buyer to authorize Buyer to execute, deliver and perform this Agreement and such other instruments, agreements and transactions as may be contemplated hereunder, have been duly and properly
taken. This Agreement has been duly executed and delivered by Buyer and constitutes the legal, valid and binding obligation of Buyer enforceable in accordance with its terms, except as such enforceability may be subject to or limited by
(i) applicable bankruptcy, reorganization, insolvency, moratorium and similar laws affecting the enforcement of creditors’ rights generally and (ii) the rules governing the availability of specific performance, injunctive relief or
other equitable remedies and general principles of equity, regardless of whether considered in a proceeding in law or equity, regardless of whether considered in a proceeding in law or equity. 
 7.2 No Conflict or Violation . The execution and delivery by Buyer of this Agreement and such other instruments, agreements and transactions as
may be contemplated hereunder and the consummation by Buyer of the transactions contemplated hereby and thereunder will not (i) violate any law, statute, rule or regulation or judgment, order, writ, injunction or decree of any Governmental
Entity, or (ii) conflict with, result in any breach of, or constitute a default (or an event which with notice or lapse of time or both would become a default) under the Articles of Incorporation or bylaws of Buyer or any agreement to which
Buyer is a party, except for such violations, conflicts, breaches or defaults which individually or in the aggregate have not had and would not reasonably be expected to have a Material Adverse Effect on Buyer. 
 7.3 Consents and Approvals . No notice to, declaration, filing or registration with, or authorization, consent or approval of, or permit from, any
Governmental Entity, or any other person or entity, is required to be made or obtained by Buyer in connection with the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby, except with
respect to the HSR Filing, except for declarations, filings, registrations, authorizations, consents, approvals or permits which if not obtained or made have not had and would not reasonably be expected to have individually or in the aggregate a
Material Adverse Effect on Buyer. 
  

 20 

 7.4 Cash Resources . Buyer has cash and/or readily available financing in an amount sufficient to
pay the Purchase Price at the Closing and any and all fees and expenses relating to the transactions contemplated under this Agreement and specifically acknowledges Seller has entered into this Agreement in reliance upon this representation. Buyer
acknowledges that obtaining financing shall not be a condition to Closing. 
 7.5 Litigation . There are no actions, suits,
proceedings or claims pending or, to the Knowledge of Buyer, threatened in writing concerning Buyer or any of its Affiliates with respect to the transactions contemplated in this Agreement. 
 7.6 Brokers and Finders . Except as set forth in Schedule 7.6, Buyer has not employed any broker or finder or incurred any Liability for
any brokerage fee, commission or finder’s fee in connection with the transactions contemplated by this Agreement. 
 7.7 Buyer Due
Diligence . Buyer is experienced, and/or has engaged expert advisors experienced in the evaluation and purchase of property and assets such as the Assets contemplated hereunder. Buyer has undertaken such investigation and has been provided with
and has evaluated such documents and information as it has deemed necessary to permit it to make an informed and intelligent decision with respect to the execution, delivery and performance of this Agreement. 
 ARTICLE 8 
 PRE-CLOSING COVENANTS OF SELLER

 8.1 Governmental Filings . Buyer and Seller shall cooperate in promptly undertaking all filings required to be filed with any
Governmental Entity in connection with the transfer of Assets and other rights under this Agreement and to cooperate with one another as reasonably necessary to accomplish the foregoing, including, but not limited to, the filings required of both
parties or, if different, their HSR ultimate parents, pursuant to the HSR (such filings sometimes being referred to in this Agreement as the “HSR Filings”), and the filing of any additional information as required with respect to
such HSR Filings as soon as practicable after receipt of request therefor from the United States Federal Trade Commission. 
 8.2 Conduct
of Business . During the period on and from the Effective Date through and including the Closing Date, Seller will conduct the Business in the ordinary course consistent with past practices, unless Buyer shall otherwise agree in writing.

 8.3 Obtaining Necessary Consents . Seller shall use its commercially reasonable efforts to obtain any and all consents necessary
for the effective assignment to and assumption by Buyer of the Assumed Contracts and Assumed Liabilities, including the Third Party Consents set forth on Attachment 4.2(a) hereto and the consents set forth on Schedule 6.3 hereto. All
such consents shall be in writing and executed counterparts thereof shall be delivered promptly to Buyer. 
  

 21 

 8.4 Shared Contracts . With respect to the Shared Contracts set forth on Schedule 8.4
Seller will use its commercially reasonable efforts to obtain the consents required to transfer any claim or right or any benefit arising under the Shared Contracts to Buyer necessary for Buyer to own the Assets or operate the Business after the
Closing (the “Shared Benefits”). If such consent is not obtained, or if an attempted assignment thereof would be ineffective so that Buyer would not in fact receive the Shared Benefits, Seller will cooperate in a mutually agreeable
arrangement pursuant to which Buyer would obtain the Shared Benefits and assume the obligations thereunder in accordance with this Agreement, including subcontracting, sublicensing or subleasing to Buyer, or under which Seller would enforce for the
benefit of Buyer, with Buyer assuming Seller’s obligations, any and all rights of Seller against a third party thereto. Seller will promptly pay to Buyer when received all monies received by Seller under any Shared Contract related to the
Business or any claim or right or any benefit arising thereunder, and Seller and Buyer shall continue to cooperate and use all commercially reasonable efforts to obtain such consent and to provide Buyer with the Shared Benefits. At and following the
Closing, Seller and Buyer will treat the Shared Contracts as provided in Schedule 8.4 of the Disclosure Schedule. 
 8.5 No
Solicitation . Seller will not (and it will use its best efforts to assure that its officers, directors, employees, agents and affiliates do not on its behalf) (a) take any action to solicit, initiate, seek, or affirmatively support any
inquiry, proposal or offer from, any corporation, partnership, person or other entity or group (other than Buyer) relating to (i) any acquisition of the Business or any of the Assets, other than the marketing, sale and distribution of Product
Inventory and use of Raw Materials in the ordinary course consistent with past practices or (ii) the acquisition of Seller that would include the Business or any of the Assets (any such proposed transaction being a “Third Party
Acquisition”); or (b) participate in any discussions or negotiations with, or provide any non-public information to, any corporation, partnership, person or other entity or group (other than Buyer) relating to any proposed Third Party
Acquisition. Seller shall immediately terminate any such negotiations in progress as of the Effective Date. In no event will Seller accept or enter into an agreement concerning any such Third Party Acquisition prior to the termination of the
Agreement pursuant to Article 12. Notwithstanding this provision, nothing herein shall be deemed to in any way restrict or limit the right of Seller to engage in discussions, negotiations, furnishing of information or any other activities relating
to or in support of transactions involving the acquisition or sale of Seller and/or any other product lines or businesses of Seller in each case other than the Business or the Assets, so long as this Agreement shall remain in full force and effect
and shall remain binding on the parties hereto. 
 8.6 Access . During the period from the Effective Date and continuing until the
Closing, upon reasonable advance notice received from Buyer and at Buyer’s expense, Seller shall (i) afford Buyer and its representatives reasonable access to, during regular business hours, or furnish Buyer and its representatives with
copies of, documents used solely and specifically with respect to the Assets or the Product as Buyer may reasonably request, and (ii) otherwise cooperate and assist with Buyer’s investigation of the Assets and the Product as Buyer may
reasonably request. 
  

 22 

 ARTICLE 9 
 CONDITIONS TO CLOSING 
 9.1 Conditions to Obligations of Buyer . All obligations of Buyer
hereunder are, at the option of Buyer, subject to the conditions precedent that, at the Closing: 
 (a) The waiting period or
periods required under the HSR, if applicable, shall have expired or shall have been terminated. 
 (b) Seller shall have
furnished to Buyer all deliverables set forth in Section 4.2(a). 
 (c) The representations and warranties of Seller set
forth in Article 6 hereof shall be true and correct in all material respects at and as of the Closing Date as though then made, except that any such representation or warranty made as of a specified date (other than the date hereof) shall only need
to have been true on and as of such date. 
 (d) No Material Adverse Change shall have occurred since the Effective Date.

 9.2 Conditions to Obligations of Seller . All obligations of Seller hereunder are, at the option of Seller, subject to the
conditions precedent that, at the Closing: 
 (a) The waiting period or periods required under the HSR, if applicable, shall
have expired or shall have been terminated. 
 (b) Buyer shall have furnished to Seller all deliverables set forth on
Section 4.2(b). 
 (c) The representations and warranties of Buyer set forth in Article 7 hereof shall be true and
correct in all material respects at and as of the Closing Date as though then made, except that any such representation or warranty made as of a specified date (other than the date hereof) shall only need to have been true on and as of such date.

 ARTICLE 10 
 POST - CLOSING
COVENANTS 
 10.1 Further Assurances . The parties agree to execute, acknowledge and deliver such further instruments, and to do
all such other reasonable acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement, including those acts necessary or useful to satisfy the Closing conditions specified in Sections 9.1 and 9.2. Each
party shall bear its own costs and expenses associated with fulfilling its obligations as set forth in this Article 10, except for such fees as provided for in the Transition Services Agreement. 
 10.2 Transfer of Registrations; Interim Responsibility . 
 (a) Promptly after the Closing Date, Seller shall (i) send letters to the FDA and other Governmental Entities indicating that the
Registrations are transferred to Buyer and that Buyer is the new owner of the Registrations as of the Closing Date and (ii) provide to Buyer a copy of said letters. 
  

 23 

 (b) Promptly after the Closing Date, the parties will cooperate in transferring the
Registrations to Buyer. The target date for the transfer shall be agreed upon by the parties, but shall not be later than three (3) months from the Closing Date. Prior to the Closing, the parties will agree upon procedures to ensure a smooth
transition from Seller to Buyer of all of the activities required to be undertaken by the Registration(s) holder, including adverse experience reporting, quarterly and annual reports to FDA, handling and tracking of complaints, sample tracking and
communication with health care professionals and customers which shall be specified in the Transition Services Agreement or an amendment thereto. Within twenty (20) days after the Closing Date, Seller will forward to Buyer a complete copy of
the Registrations for Product, as well as copies of all correspondence with, and periodic and other reports (including adverse event reports and the underlying data) to, regulatory authorities in the Territory. Seller will cooperate with Buyer to
ensure a smooth transition of the activities contemplated hereby, and in obtaining the cooperation of Seller’s distributors and licensees of the Product with the transfer of adverse experience reporting obligations from Seller to Buyer.

 (c) Until the Registrations have been transferred to Buyer, Seller shall be responsible for maintaining them, at
Seller’s sole cost and expense. After such transfer, Buyer will assume all responsibility for the Registrations, at Buyer’s sole cost and expense. Each party shall cooperate with the other in making and maintaining all regulatory filings
that may be necessary in connection with the execution, delivery and performance of this Agreement. 
 10.3 Communication With Agencies
. Until the Registrations are transferred to Buyer, Seller shall have responsibility for all communications with the FDA relating to the Product, and Seller will promptly provide Buyer with copies of all communications from the FDA with respect
to the Product and/or the manufacture thereof, and Seller shall consult with Buyer and reflect the Buyer’s reasonable requests regarding all communications to the FDA with respect to the Product and/or the manufacture thereof, prior to making
such communication with the FDA. After such transfer has been completed, Buyer shall have responsibility for all such communication it sends to or receives from any Governmental Entity in the Territory concerning the Product. 
 10.4 Federal Supply Schedule . Buyer shall within five (5) business days after the Closing Date, add the Product to its Federal Supply
Schedule. 
 10.5 Adverse Experience Reporting . 
 (a) Until the Registrations are transferred to Buyer, Seller shall be responsible for the adverse experience and safety reporting for the
Product in compliance with the requirements of the FD&C Act and the regulations promulgated thereunder. After the Registrations are transferred to Buyer, Buyer shall assume such responsibility. Buyer and Seller agree to meet promptly after the
Closing Date to determine mutually agreeable reporting procedures to communicate the information as required under this Section 10.5. 
  

 24 

 (b) On or before the Closing Date, Seller shall provide Buyer with a summary of the
information relating to the investigation and reporting of adverse experiences regarding Product and all appropriate information that is relevant to the safe use of the Product as of the Closing Date. 
 (c) After the Closing Date and until the Registrations are transferred to Buyer, Buyer agrees to promptly submit to Seller all adverse
drug experience information and customer complaints brought to the attention of Buyer with respect to the Product, as well as any material events and matters concerning or affecting the safety or efficacy of the Product. Such information or customer
complaints shall be forwarded to Seller to the attention of: 
  

			
	 PDL BioPharma, Inc.
	  	
	 Name:
	  	 [***]

	 Title:
	  	Medical Director, Drug Safety
	 Address:
	  	1400 Seaport Blvd
Redwood City, CA 94063
	 Facsimile:
	  	650-454-1403
	 Drug safety mailbox:
	  	drugsafety@pdl.com

 (d) After the Registrations have been transferred to Buyer, Seller shall assist
Buyer with the provision of data relating to adverse experiences for the Product after such transfer to Buyer. Additionally, after the transfer of the Registrations to Buyer, Seller shall promptly provide Buyer with all adverse drug experience
information and customer complaints brought to the attention of Seller with respect to the Product, as well as any materials events and matters concerning or affecting the safety or efficacy of the Product, via facsimile to the attention of:

  

			
	Otsuka Pharmaceutical Co., Ltd.
	Name:	  	 [***] 

	Title:	  	Director, Global Pharmacovigilance
	Address:	  	 Otsuka Pharmaceutical Co., Ltd.
 9F Kitahama TNK Bldg,
1-7-1 Dosho-machi,
 Chuo-ku, Osaka 541-0045, JAPAN

	Facsimile:	  	+81-6-6231-3027

 10.6 Promotion, Marketing and Labeling . Promptly after the Registrations have been
transferred to Buyer and subject to applicable regulatory approvals, all Buyer advertising and promotional materials for the Product shall identify Buyer as the marketer of the Product in the Territory, in such form as Buyer shall determine.
Promptly after the Registrations have been transferred to Buyer, Buyer shall make such changes in the package insert, Product labeling and packaging as may be required to reflect Buyer as the marketer of the Product in the Territory, including
making all required FDA and any other regulatory filings in connection therewith. Promptly after the Registrations have been transferred to Buyer, Seller shall file with the FDA a notice that Buyer is the marketer and distributor of the Product in
the United States. To the extent that the FDA requests additional information or meetings regarding Buyer’s responsibilities as marketer and distributor of the Product in the Territory, Buyer shall respond to the FDA at its own expense and
through its own personnel. Seller is not required to change the 

  

 25 

 
Product labeling, package insert or packaging for the Drug Product, or the Packaged Product. With respect to the Product Inventory purchased by Buyer
hereunder, Buyer shall, for a period of three (3) months following the Closing, be permitted to sell Product from the Product Inventory as labeled and packaged prior to the Closing Date, without regard to whether such Product references Seller,
provided that all such Product Inventory shall be held, maintained, distributed and sold in accordance with the Registrations and all applicable laws. Upon the expiration of such transitional period, all Product sold by Buyer, including the Product
Inventory, shall, at Buyer’s sole cost, be required to have labeling and packaging which properly identifies Buyer as the marketer of the Product and does not contain any references to Seller. 
 10.7 Medical Inquiries . Promptly after the Registrations have been transferred to Buyer, Buyer shall assume all responsibility for all
correspondence and communication with physicians and other health care professionals and customers in the Territory relating to the Product. After the Closing Date, Buyer and Seller shall work together towards an orderly transition of the
responsibility for all correspondence and communication with health care professionals and customers in the Territory relating to the Product. Seller shall continue to be responsible for such correspondence and communication under the direction of
Buyer until the Registrations have been transferred to Buyer. Buyer shall keep such records and make such reports as shall be reasonably necessary to document such communications in compliance with all applicable regulatory requirements. After
transfer of responsibility to Buyer pursuant to this Article 10, Seller shall, except in the case of medical emergency, refer all questions relating to the Product raised by health care professionals and customers to Buyer for its response.

 10.8 Non-Use of Trademarks . Buyer covenants that, except as expressly permitted in this Agreement, Buyer shall not use in any
manner any trademark of Seller (other than the Trademarks listed in Attachment 2.1(c) and transferred to Buyer pursuant to this Agreement). 
 10.9 Documents . Seller agrees to deliver, or cause to be delivered, to Buyer as soon as practical after the Closing, copies of documents to the extent related solely to the Assets and the Business. Seller will permit Buyer and its
duly authorized representatives access during normal business hours (upon written notice to Seller) to contracts and other data relating to the Business, the Assets conveyed and assumed at the Closing to the extent copies of such items were not
delivered to Buyer. Buyer will permit Seller and its duly authorized representatives access during normal business hours (upon written notice to Buyer) to all contracts and other data relating to the Assets conveyed and assumed at the Closing to the
extent originals of such items were delivered to Buyer. Such access by Buyer or Seller, as the case may be, to be allowed until the later to occur of the expiration of the statute of limitations for the imposition of Tax with respect to the years to
which such data pertain, or seven years from the year to which such data pertain, provided that such access shall not unduly interfere with the business and affairs of the party or applicable Affiliate permitting such access. Buyer will cooperate
with Seller, and Seller will cooperate with Buyer, with respect to any Tax examinations, audits, contests or other Tax proceedings, relating to the Business. The party requesting assistance hereunder shall reimburse the other party for reasonable
expenses incurred in providing such assistance. 
 10.10 Governmental Inspections . For a period of nine (9) months following the
Closing Date each party shall advise the other party of any governmental visits to, or written or oral inquiries about, any facilities (to the extent such visit relates to, or the results thereof could affect 

  

 26 

 
the manufacture or supply of, Product) or procedures for the manufacture, storage or handling of Product, or the marketing, selling, promotion or
distribution of any Product, promptly after any such visit or inquiry (or in advance, for any scheduled visits). During this period, each party shall promptly furnish to the other party any report or correspondence issued by or provided to a
Governmental Entity in connection with such visit or inquiry, purged only of Confidential Information of such party wholly unrelated to the other party’s activities under this Agreement and any information that is unrelated to the Product. Each
party shall permit the relevant Governmental Entity to inspect its facilities in connection with the activities contemplated by this Agreement. 
 10.11 Intellectual Property Maintenance . Following the Closing, Buyer will have the sole right (but not the obligation) to file, prosecute and maintain, at its sole cost and expense any patent applications, Patents, Trademark
Registrations and Domain Names that cover or relate to the Product. Buyer will be responsible for and promptly pay when due all fees necessary to and will otherwise maintain the patent applications, Patents, Trademark Registrations and Domain Names.
Following the Closing, Buyer shall be responsible for recording the assignment of the assigned Patents, Domain Names and Trademark Registrations with the U.S. Patent and Trademark Office and other authorities or entities as it deems appropriate, at
its own cost and expense (including any attorney fees and filing fees). Seller shall fully cooperate with Buyer, as and to the extent reasonably requested by Buyer after the Closing Date, to secure any further registration of, or to enforce or
defend, any Patents, Trademarks, Registrations, Domain Names or other intellectual property rights related to the Product for the benefit of Buyer and to execute assignments and any other documents to effect the transfer of such Patents, Trademarks,
Registrations, Domain Names or other intellectual property rights related to the Product to Buyer. 
 10.12 Insurance . As of the
Closing Date, the coverage under all insurance policies related to the Business shall continue in force only for the benefit of Seller, and not for the benefit of Buyer or the Business. As of the Closing Date, Buyer agrees to arrange for its own
insurance policies with respect to Buyer’s conduct of the Business. 
 10.13 Payments from Third Parties . As soon as reasonably
practicable after the Closing Date but not more than five (5) business days thereafter, Seller will provide Buyer with a list of all of the customers and wholesalers purchasing Product from Seller and Seller and Buyer shall notify those
customers and wholesalers that Buyer has assumed responsibility for the marketing and sale of the Product in the Territory and all payments with respect to the sale of the Product after the Closing Date should be deposited with Buyer at the
designated account. Seller and Buyer shall notify customers and wholesalers using the third party notification letter substantially in the form attached hereto as Exhibit H (the “Third Party Notification Letter”). In the
event that, on or after the Closing Date, either party shall receive any payments or other funds due to the other party, then the party receiving such funds shall promptly forward such funds to the proper party. The parties acknowledge and agree
there is no right of offset regarding such payments and a party may not withhold funds received from third parties for the account of the other party in the event there is a dispute regarding any other issue under this Agreement. 
 10.14 Distribution of Products . Buyer acknowledges that continued distribution of the Product is important to meet the medical needs of patients
and Buyer agrees to use its 

  

 27 

 
commercially reasonable efforts to continue to distribute the Product to meet such patient needs, and to continue all patient assistance programs as
established or supported by Seller; provided, however, that the foregoing shall not require Buyer to assume or otherwise comply with any agreements relating to investigator sponsored or initiated clinical trials in existence as of the Closing Date.

 10.15 Product Returns, Chargebacks and Rebates . Buyer shall assume responsibility for handling all returns of the Product sold by
or for Seller prior to the Closing Date in accordance with Seller’s normal return policies and procedures. Any returns received directly by Seller after the Closing Date shall be forwarded to Buyer’s designated facility for handling of the
returned Product and processing of customer credits; provided, that costs for such handling and customer credit shall be reimbursed from Seller to Buyer to the extent such costs relate to the Product sold prior to the Closing Date. Seller shall
continue to process and pay for all chargebacks and rebates related to the Product sold prior to the Closing Date and Buyer will be financially responsible for all such chargebacks and rebates related to the Product sold after the Closing Date.

 10.16 Additional Assets . During the period from the Closing Date and continuing until one (1) year after the Closing Date, if
Seller or Buyer identifies any tangible assets, Patents or Trademarks (including Domain Names) of Seller that are necessary for (and were used by Seller solely in) the Business as conducted by Seller prior to Closing that were not sold, assigned,
transferred, conveyed and delivered to Buyer as required by this Agreement, then Seller shall undertake to promptly transfer such asset to Buyer, but in each instance only to the extent any such asset is: (i) in existence as of such time, and
(ii) in the possession of, and controlled and freely transferable by, Seller or any of Seller’s Affiliates. 
 10.17 Bulk
Transfer Laws . Buyer hereby waives compliance by Seller with the provisions of any so-called “bulk transfer law” of any jurisdiction in connection with the sale of the Assets to Buyer. Seller shall indemnify and hold Buyer harmless
from, against and in respect of (and shall reimburse Buyer for) any and all liabilities that may be asserted by third parties against Buyer as a result of noncompliance with any such bulk transfer law. 
 ARTICLE 11 
 CONFIDENTIALITY 

11.1 Confidentiality . Each party has disclosed, and may hereafter from time to time in the course of the performance of this Agreement
disclose, Confidential Information to the other party. Until September 6, 2012 (the “Expiration Date”), each party shall hold in confidence all Confidential Information of the other party and shall take all reasonable steps to
prevent disclosure to, or use of the Confidential Information of the other party by, any third party, except as permitted under this Agreement or as necessary to carry out the activities contemplated hereby. Further, until the Expiration Date,
neither party shall, without the prior written consent of the other party, use the Confidential Information of the other party for any purpose other than performing its obligations or exercising its rights under this Agreement. Until the Expiration
Date, each party shall disclose the Confidential Information of the other party only to its directors, employees, consultants, vendors and clinicians under written agreements of confidentiality or other confidentiality obligations at least as
restrictive as those set forth in this 

  

 28 

 
Agreement, who have a need to know such information in connection with such party performing its obligations or exercising its rights under this Agreement.
No provision of this Agreement shall be construed so as to preclude such disclosure of Confidential Information as may be inherent in or reasonably necessary to the securing from any Governmental Entity of any necessary approval or license related
to the Product, or to the obtaining of patents. After the Expiration Date, and upon the written request of the other party, each party shall promptly return to the other party all copies and embodiments of the Confidential Information of such other
party, subject to the retention by each party’s legal department of one complete copy for archival purposes. 
 11.2 Publicity .
No party to this Agreement shall originate any publicity, news release or other public announcement, written or oral, whether relating to this Agreement or the existence of any arrangement between the parties, without the prior written consent of
the other party whether named in such publicity, news release or other public announcement or not, except where such publicity, news release or other public announcement is required by law; provided that in such event, the party issuing same
shall still be required to consult with the other party whether named in such publicity, news release or public announcement or not, a reasonable time prior to its release to allow the other party to comment thereon and, after its release, shall
provide the other party with a copy thereof. If either party, based on the advice of its counsel, determines that this Agreement, or any of the other documents executed in connection herewith, must be filed with the SEC, then such party, prior to
making any such filing, shall provide the other party and its counsel with a redacted version of this Agreement (or any other related documents) which it intends to file, and will give due consideration to any comments provided by the other party or
its counsel and use reasonable efforts to ensure the confidential treatment by the SEC of those sections specified by the other party or its counsel. 
 ARTICLE 12 
 TERM AND TERMINATION 
 12.1 This Agreement may be terminated prior to the Closing: 
 (a) By Buyer, upon written notice (i) at any time prior to Closing, if Seller shall have failed to comply in any material respect with any of its covenants or agreements contained in this Agreement, and such
failure shall be continuing, or if any one or more of the representations or warranties of Seller contained in this Agreement shall prove to be inaccurate in (A) any material respect if such representation or warranty was not subject to
materiality qualifier or (B) any respect if such representation or warranty was subject to a materiality qualifier; provided, however, Buyer shall give Seller thirty (30) days to cure any such failure to so comply with any of its covenants
or agreements contained in this Agreement; or (ii) at Closing, if any of the conditions precedent to the performance of Buyer’s obligations at the Closing under Article 8 shall not have been fulfilled (unless the failure results primarily
from Buyer’s breach of any representation, warranty, covenant or agreement contained this Agreement); provided, however, that in the event that Buyer shall desire to terminate this Agreement as a result of the failure of the
accuracy in any material respect of a representation or warranty at the Closing, Buyer shall be required to give Seller prior notice that it intends to terminate this Agreement as a result of such inaccuracy. 
  

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 (b) By Seller, upon written notice (i) at any time prior to Closing, if Buyer shall
have failed to comply in any material respect with any of its covenants or agreements contained in this Agreement and such failure shall be continuing, or if any one or more of the representations or warranties of Buyer contained in this Agreement
shall prove to be inaccurate in (A) any material respect if such representation or warranty was not subject to materiality qualifier or (B) any respect if such representation or warranty was subject to a materiality qualifier;
provided, however, Seller shall give Buyer thirty (30) days to cure any such failure to so comply with any of its covenants or agreements contained in this Agreement; or (ii) at the Closing, if any of the conditions precedent
to the performance of Seller’s obligations at the Closing under Article 8 shall not have been fulfilled (unless the failure results from Seller’s breach of any representation, warranty, covenant or agreement contained this Agreement);
provided, however, that in the event that Seller shall desire to terminate this Agreement as a result of the failure of the accuracy in any material respect of a representation or warranty at the Closing, Seller shall be required to
give Buyer prior notice that it intends to terminate this Agreement as a result of such inaccuracy. 
 (c) By either party if
the Closing shall not have occurred on or before March 31, 2008, provided that such date shall be extended to June 1, 2008 in the event the waiting period under the HSR is extended, restarted or renewed beyond the initial 30-day period,
unless such failure to close is primarily the result of the breach of any representations, warranties, covenants or agreements contained in this Agreement by the party seeking to terminate. 
 12.2 In the event of termination of this Agreement prior to the Closing, in accordance with its terms: (i) each party will redeliver all documents,
work papers and other material of any other party relating to the transactions contemplated hereby, whether so obtained before or after the Effective Date, to the party furnishing the same; (ii) the provisions of Article 10 shall continue in
full force and effect; and (iii) no party hereto shall have any Liability or further obligation to any other party to this Agreement, except for willful breach. 
 12.3 Termination under this Article 12 shall not become effective so long as the alleged grounds for termination are in dispute and the matter(s) at issue have been submitted for resolution pursuant to this Agreement.

 ARTICLE 13 
 INDEMNIFICATION

 13.1 Indemnification by Buyer . Buyer indemnifies and holds harmless Seller, and any of its directors, officers, employees,
Affiliates, controlling persons, agents and representatives (the “Seller Indemnitees”) from and against any Liabilities (a) to the extent such Liabilities relate to the Assumed Liabilities (b) arising from Buyer’s
breach of or non-performance of any covenant or agreement under this Agreement or any instrument delivered pursuant to this Agreement or (c) arising from the conduct of the Business after the Closing, including without limitation, the
manufacture of Product after the Closing. 
 13.2 Indemnification by Seller . Seller indemnifies and holds harmless Buyer, and any of
its directors, officers, employees, Affiliates, controlling persons, agents and representatives (the “Buyer Indemnitees”) from and against any Liabilities (a) to the extent such Liabilities relate 

  

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to the Excluded Liabilities, (b) arising from Seller’s breach of or non-performance of any covenant or agreement under this Agreement or any
instrument delivered pursuant to this Agreement or (c) arising from the conduct of the Business prior to the Closing, including without limitation the manufacture of Product prior to the Closing. 
 13.3 Claims . Any Buyer Indemnitee or Seller Indemnitee claiming it may be entitled to indemnification under this Article 13 (the
“Indemnified Party”) shall give prompt notice to the other party (the “Indemnifying Party”) of each matter, action, cause of action, claim, demand, fact or other circumstances upon which a claim for indemnification
(a “Claim”) under this Article 13 may be based. Such notice shall contain, with respect to each Claim, such facts and information as are then reasonably available, the specific basis for indemnification hereunder, together with the
amount or, if not then reasonably ascertainable, the estimated amount, determined in good faith. Failure to give prompt notice of a Claim hereunder shall not affect the Indemnifying Party’s obligations under this Section, except to the extent
the Indemnifying Party is prejudiced by such failure. 
 13.4 Limitation; Exclusivity . No Claim shall be made or have any validity
unless the Indemnified Party shall have given written notice of such Claim to the Indemnifying Party. If full recovery under any such Claim is not had within three (3) months of such written notice, arbitration, pursuant to Section 14.4,
must be commenced within thirty (30) days following the end of such three-month period or such Claim shall be invalidated. This Article 13 provides the exclusive means by which a party may assert Claims against the other party and
Section 14.4 provides the exclusive means by which a party may bring actions against the other party with respect to any breach by the other party of its indemnification obligations under this Article 13. 
 ARTICLE 14 
 MISCELLANEOUS 

14.1 Non-Survival of Representations and Warranties . The representations and warranties made in Articles 6 and 7 or any instrument delivered
pursuant to this Agreement shall not survive after the Closing Date. 
 14.2 No Third Party Beneficiaries . Nothing in this Agreement,
express or implied, is intended to or shall (i) confer on any person other than the parties hereto (and Buyer Indemnitees and the Seller Indemnitees referred to in) and their respective successors or assigns any rights (including third party
beneficiary rights), remedies, obligations or liabilities under or by reason of this Agreement, or (ii) constitute the parties hereto as partners or as participants in a joint venture. This Agreement shall not provide third parties with any
remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to the terms of this Agreement. No third party shall have any right, independent of any right which may exist irrespective of this
Agreement, under or granted by this Agreement, to bring any suit at law or equity for any matter governed by or subject to the provisions of this Agreement. 
 14.3 Force Majeure . If the performance by either party of any obligation under this Agreement is prevented, restricted, interfered with or delayed by reason of any cause beyond the reasonable control of the
party liable to perform, unless conclusive evidence to the contrary is provided, the party so affected shall, upon giving written notice to the other party, be excused 

  

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from such performance to the extent of such prevention, restriction, interference or delay, provided that the affected party shall use its reasonable efforts
to avoid or remove such causes of non-performance and shall continue performance with the utmost dispatch whenever such causes are removed. When such circumstances arise, the parties shall discuss what, if any, modification of the terms of this
Agreement may be required in order to arrive at an equitable solution. 
 14.4 Governing Law; Jurisdiction; Dispute Resolution and
Arbitration . This Agreement shall be deemed to have been made in the State of California and its form, execution, validity, construction and effect shall be determined in accordance with the laws of the state of California, without giving
effect to the principles of conflicts of law thereof. Disputes arising out of, relating to or in connection with this Agreement, or in relations between the parties with respect to the subject matter hereof, for any reason or under any
circumstances, will be finally settled by a single arbitrator in a binding arbitration in accordance with the Judicial Arbitration and Mediation Services (“JAMS”) Comprehensive Arbitration Rules and Procedures (the “JAMS
Rules”). Upon receipt of written notice of the existence of a dispute by one party hereto to the other, the parties shall, within thirty (30) days conduct a meeting of one or more senior executives of each party, with full settlement
authority, in an attempt to resolve the dispute. Each party shall make available appropriate personnel to meet and confer with the other party reasonably within the thirty-day period. Upon the expiration of the thirty-day period, or upon the
termination of discussions between the senior executives, either party may elect arbitration of any dispute by written notice to the other (the “Arbitration Notice”). The arbitration shall be held in San Francisco, California before
one (1) arbitrator from JAMS having substantial experience as a jurist and mediator with significant disputes in the biotechnology and/or pharmaceuticals industry selected by the mutual agreement of the Buyer and the Seller; provided,
however, that if such parties cannot agree on an arbitrator within thirty (30) days of the Arbitration Notice, either party may request JAMS select the arbitrator, and JAMS shall select an arbitrator pursuant to the procedure set out by
the JAMS rules, provided, however, that the arbitrator selected be a former judge with at least fifteen (15) years experience addressing as a jurist and/or mediator significant disputes in the biotechnology and or pharmaceutical industry. The
arbitration shall be administered by JAMS pursuant to its AAA Rules. Judgment on the arbitration award may be entered in any court having jurisdiction. The arbitrator may, in the arbitration award, allocate for payment by the non-prevailing party
all or part of the costs of the arbitration, including fees of the arbitrator and the reasonable attorneys’ fees and costs incurred by the prevailing party. This Section shall not preclude the parties from seeking provisional remedies in aid of
arbitration from a court of appropriate jurisdiction. In respect of any actions for injunctive or other equitable relief hereunder, any action or proceeding may be brought against any party in the state and federal courts located in the city of San
Francisco, California and each of the parties consents to the jurisdiction of such courts in any such action or proceeding and waives any objection to venue laid therein. 
 14.5 Severability . If any provision of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, it shall be modified, if possible, to the minimum extent necessary to make it
valid and enforceable or, if such modification is not possible, such provision shall be stricken and the remaining provisions shall remain in full force and effect; provided, however, that if a provision is stricken so as to significantly alter the
economic arrangements of this Agreement, the party adversely affected may terminate this Agreement upon 60 days’ prior written notice to the other party. If any of the terms or provisions of this 

  

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Agreement is in conflict with any applicable statute or rule of law in any jurisdiction, then such term or provision shall be deemed inoperative in such
jurisdiction to the extent of such conflict and the parties will renegotiate the affected terms and conditions of this Agreement to resolve any inequities. 
 14.6 Entire Agreement . This Agreement and the ancillary transaction documents to be executed and delivered pursuant to this Agreement are intended to define the full extent of the legally enforceable
undertakings and representations of the parties hereto, and no promise or representation, written or oral, which is not set forth explicitly in this Agreement or such ancillary transaction documents is intended by either party to be legally binding;
provided, however, in the event this Agreement terminates, the Confidentiality Agreement shall continue in full force and effect pursuant to its terms. Each of the parties acknowledge that in deciding to enter into this Agreement and
to consummate the transaction contemplated hereby none of them has relied upon any statements or representations, written or oral, other than those explicitly set forth in this Agreement. 
 14.7 Amendment . This Agreement may not be amended, supplemented or otherwise modified except by an instrument in writing signed by both parties
that specifically refers to this Agreement. 
 14.8 Notices . All notices and other communications given or made pursuant hereto shall
be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified, (ii) when sent by confirmed facsimile, (iii) five (5) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid or (iv) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the
respective parties at the addresses set forth below (or at such other addresses as shall be specified by notice given in accordance with this Section): 
  

			
	If to Seller:	  	PDL BioPharma, Inc.
		  	Attention: Vice President, Legal Affairs
		  	1400 Seaport Boulevard
		  	Redwood City, CA 94063
		  	Facsimile: 650-454-1468
		  	E-mail: cynthia.shumate@pdl.com
		
	with a copy to:	  	DLA Piper US LLP
	(not to constitute notice)	  	Attention: Howard Clowes
		  	153 Townsend Street, Suite 800
		  	San Francisco, CA 94107-1957
		  	Facsimile: 415- 659-7410
		  	E-mail: howard.clowes@dlapiper.com
		
	If to Buyer:	  	Otsuka Pharmaceutical Co., Ltd.
		  	Attention: Director, Legal Affairs Department
		  	2-16-4 Konan, Minato-ku, Tokyo 108-8242

  

 33 

			
		  	Japan
		  	Facsimile: 81-3-6717-1480
		  	E-mail: Bill@otsuka.jp
		
	with a copy to:	  	Heller Ehrman LLP
	(not to constitute notice)	  	Attention: Kevin T. Collins
		  	Times Square Tower
		  	7 Times Square
		  	New York, NY 10036
		  	Facsimile: (212) 763-7600
		  	E-mail: kevin.collins@hellerehrman.com

 14.9 Assignment . This Agreement and the rights and obligations hereunder shall be binding
upon and inure to the benefit of the parties hereto, their respective successors and assigns, but this Agreement shall not be assignable by either party hereto without the express written consent of the other party hereto which will not be
unreasonably withheld. 
 14.10 No Agency . It is understood and agreed that each party shall have the status of an independent
contractor under this Agreement and that nothing in this Agreement shall be construed as authorization for either party to act as agent for the other. Neither party shall incur any Liability for any act or failure to act by employees of the other
party. 
 14.11 Construction . 
 (a) This Agreement has been prepared jointly and shall not be strictly construed against either party. 
 (b) For purposes of this Agreement, whenever the context requires: the singular number shall include the plural, and vice versa; the masculine gender shall include the feminine and neuter genders; the feminine gender
shall include the masculine and neuter genders; and the neuter gender shall include the masculine and feminine genders. 
 (c)
Except as otherwise indicated, all references in this Agreement to “Articles,” “Sections,” “Exhibits” and “Schedules” are intended to refer to Articles and Sections and Exhibits and Schedules to this
Agreement. 
 (d) 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. 
 14.12 Payment of Expenses . All costs and expenses associated
with this Agreement and the transactions contemplated thereby, including the fees of counsel and accountants, shall be borne by the party incurring such expenses. 
 14.13 Counterparts . This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument. Any executed
counterpart delivered by facsimile or other means of electronic transmission shall be deemed an original for all purposes. 
  

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 [Remainder of page intentionally left blank; signature page follows] 
  

 35 

 IN WITNESS WHEREOF, the parties, through their authorized officers, have duly executed this as of the
date first written above. 
  

			
	 PDL BioPharma, Inc.,
 a Delaware
corporation

		
	By:	 	/s/ L. Patrick Gage
	Name:	 	L. Patrick Gage
	Title:	 	Chief Executive Officer

			
		
	By:	 	/s/ Andrew Guggenhime
	Name:	 	Andrew Guggenhime
	Title:	 	Senior Vice President and Chief Financial Officer

  

			
	 Otsuka Pharmaceutical Co., Ltd.,
 a
Japanese corporation

		
	By:	 	/s/ Tatsuo Higuchi
	Name:	 	Tatsuo Higuchi
	Title:	 	President and Representative Director

			
		
	By:	 	/s/ Hiromi Yoshikawa
	Name:	 	Hiromi Yoshikawa
	Title:	 	Managing Director, Pharmaceutical Business and U.S. Operations

 SIGNATURE PAGE 
 ASSET PURCHASE AGREEMENT

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