I really appreciate the viewpoints and the honesty and openness with which they were expressed.  My main observation is that I've sometimes encountered tension/conflict between some of the values in a given situation.  Ideally, we'd like to pursue and accomplish them all at the same time, but sometimes that's not possible.  If I were to choose one though as the most important, it would be "Live Honorably" - if we accomplish any of the others but neglect this one, I feel like we have failed or at least tainted our success.

David Fang | Managing Director | ORIX Mezzanine & Private Equity | ORIX USA Corporation | 1717 Main Street, Suite 1100 | Dallas, TX 75201 | t |  214-237-2359 c | 469-394-9977 e | david.fang@orix.com | www.orix.com | www.orixmpe.com

-----Original Message-----
From: ironlady@stagen.simplelists.com [mailto:ironlady@stagen.simplelists.com] On Behalf Of Wiegand, Tom
Sent: Wednesday, July 19, 2017 9:46 AM
To: ironlady@stagen.simplelists.com
Subject: FW: Corporate Values Reflection

Reflections on our guiding principles is such a wide open discussion, so hard to pick a starting point.  My reflection is focused on the core of our business, making investments/getting deals done, which falls into the "seize opportunity" and "create value" dynamic.  And, very specifically, the difference between what OUC wants to be doing and what Tokyo allows us to do.  My starting point is that I recognize and appreciate the huge benefit we have with the consistent availability of capital.  I've been in the real estate industry for several years before joining ORIX and having access to capital is not to be taken for granted.  Many large, institutional firms, go through periods of significantly reduced deployment of capital.

I agree with Wade's question about the dialogue between Tokyo and OUC.  I believe there are very specific discussions about OUC's investing parameters at the senior management level, but they change constantly which Tokyo has the right to do.  I think better communication would reduce some of the frustration, but we need to accept the fact these parameters are subject to change.  The hard part is finding new areas of opportunity within ever changing parameters.

Tom Wiegand  |  Managing Director   |  ORIX USA Corporation
1717 Main Street, Suite 1100  |  Dallas, TX 75201  t  |  214-237-2225  e  |  tom.wiegand@orix.com  |  www.orix.com

-----Original Message-----
From: ironlady@stagen.simplelists.com [mailto:ironlady@stagen.simplelists.com] On Behalf Of Holt, Wade
Sent: Thursday, July 13, 2017 10:08 AM
To: ironlady@stagen.simplelists.com
Subject: RE: Corporate Values Reflection

It would be interesting to know to what extent there is a direct dialogue with Tokyo about some of these concerns.  I wonder if there is an active conversation between OUC and Tokyo regarding OUC's values and goals, and what has been the feedback.

By the way Phil, I really appreciate the guidance you provided.  It has been and continues to be extremely helpful in trying get our deal done.

Wade Holt  |  Managing Director  |  Special Assets  |  ORIX USA Corporation  |  1717 Main Street, Suite 1100  |  Dallas, TX 75201  |  t  |  214-237-2374      e  |  Wade.Holt@orix.com  |  www.orix.com

-----Original Message-----
From: ironlady@stagen.simplelists.com [mailto:ironlady@stagen.simplelists.com] On Behalf Of Gibson, Phillip
Sent: Wednesday, July 12, 2017 11:52 AM
To: ironlady@stagen.simplelists.com
Subject: Re: Corporate Values Reflection

These are all well thought out reflections/commentary.  I read "building your company's vision" yesterday and one piece that stuck with me was a company's values/visions maybe established by a group of leaders who may not be there once the values, visions or goals are accomplished.

I wonder, will I be at Orix to see the vision, values and goals achieved?  I've been here for 8 years, at least long enough to see the transition from Thompson, Prince to Nishitani; and believe we are in a better position today.   However, I agree with the commentary on our parent and ask - will Tokyo really let us flex our muscle or sprout our wings?

I do recognize what we have said in the past, we are taking baby steps in some aspects and our group is the second stagen class.  We are laying the ground work or foundation for the future, but how many in the first class continue to apply the stagen principles learned or treat it as just a one year class?  Will I continue to apply these principles after our class is over?  My plan is to try to do so.

There are a lot of dynamics working here and I will also echo frustration with our parent. My frustration stems more from  a real estate perspective and approval level threshold. I understand this may never change but when I started here we had a $50mm threshold, anything over $50mm went to Tokyo for approval. After being here 8 years, the approval level has not increased even though we've built a significant portfolio and with a good track record. We tend to stay in the $10-$30mm sweet spot to avoid Tokyo.  I say all that to question can we really change Tokyo, and will that limit our potential or achieving our vision.

Overall, I try to view all this in taking a few small successful steps and not get overwhelmed by the bigger steps that lay ahead. The small steps that I have been able to take walks with Thrive Together. Ironically I had the opportunity to provide real estate valuation risk perspectives on assets for David Fang and Wade Holt, who are outside my group. There have been other groups I've provided RE commentary or diligence during the year. This not used to happen and I do chalk it up to thriving together and having more interaction between various Orix groups.

I'm also a realist and do think we have challenges ahead but am impressed with the folks in our group and the deep thinking that has been commented on.

Sent from my iPhone

On Jul 11, 2017, at 4:32 PM, Lenocker, John <john.lenocker@orix.com<mailto:john.lenocker@orix.com>> wrote:

I will echo some comments on the thread about a visible walk the talk gap when it comes to several of our corporate values. I am also concerned with a lack of support/understanding from our parent, a risk that may grow more acute as OUC progresses on the value and strategy journey. Once you foster a desire for growth and exceptionalism, it becomes increasingly difficult to accept mediocrity. While there is no guarantee that OUC can realize its potential to truly become a world-class institution, it will be impossible to accept (at least for me) a lack of support from above as being the cause of not attaining our goals.

Here's my mid-2017 scorecard on our corporate values:
We Pursue Excellence.but have not sufficiently empowered people/teams to take the steps to consistently obtain excellence. We create roadblocks, knowingly and unknowingly, which impact development, decision making, and execution. I still find many instances where we are "successful" in spite of ourselves.

We would like to Seize Opportunity.but continue to overemphasize downside risk despite constant call for earnings growth (i.e. we disregard the role of Risk in the generation of Rewards), and we primarily demonstrate a Loss Aversion mindset when evaluating non-strategic investments (I will readily admit we seem more aggressive on strategic acquisitions). I also expect this value, ultimately, to be the most out of sync with Tokyo's Risk culture. Without more widespread interaction with our parent, this will be hard to move the needle on.

We Live Honorably.this continues to be a work in progress but definitely the "least aspirational" of our goals and where we are today is certainly light years ahead of a decade ago.

Create Value and Thrive Together.I lump these two together as they seem the most open to interpretation as to what "success" is beyond the Foundation's activities. Until we better define who our partners are, we will struggle to measure our actions in a spirit of partnership, which leads to one-sided negotiation and lack of realization of what should be a long-term goal of approaching the market (given our commodity-like nature of the specialty finance industry) with a relationship, not trading, mentality.

Just my two cents worth.and if it's a penny for your thoughts, someone just made a penny.

John Lenocker |  Managing Director  |  Private Debt & Equity Capital ORIX USA Corporation  |  1717 Main Street, Suite 1100  |  Dallas, TX 75201
t  |  214-237-2026     c  |  972-762-5528     e  |  john.lenocker@orix.com<mailto:john.lenocker@orix.com>  |  www.orix.com<http://www.orix.com/>

From: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com> [mailto:ironlady@stagen.simplelists.com] On Behalf Of Seth Braun
Sent: Tuesday, July 11, 2017 11:20 AM
To: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com>
Subject: Re: Corporate Values Reflection

Jeff,

Appreciate that you can name the out-of-synch experience here.

I don't know the answer, but I am curious where you can turn to with this kind of feedback?

Seth

Seth Braun | Executive Coach
Seth.Braun@stagen.com<mailto:Seth.Braun@stagen.com> |  303.443.6543

Stagen | 3535 Travis  Street | Suite 100 | Dallas, TX 75204
p: 214.744.9255 | f: 214.744.0094 | www.stagen.com<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.stagen.com_&d=DwMFAw&c=l6wIEjFZ2r6NRbgTeJOW4HMPY8FVASe8l9IlzHzRYYs&r=JOt28gYMAaWoiyOL5F1GIW-elwFqcYyHWSJUUW8ABfo&m=zCtV-IKUCwGRNs7YaNCWCZ3qmEfvrfIghpJ8b3f7CU4&s=xH9x4PwsHomlPZGYJp4eXmInRX-64uK5fFDjLCgL2Lg&e=>

From: <ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com>> on behalf of Jeff Bede <Jeff.Bede@orix.com<mailto:Jeff.Bede@orix.com>>
Reply-To: "ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com>" <ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com>>
Date: Sunday, July 9, 2017 at 8:29 PM
To: "ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com>" <ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com>>
Subject: RE: Corporate Values Reflection

I have been chewing on the ORIX corporate values for a while now.  I fear they are too aspirational and have experienced some major institutional walk the talk issues.  Perhaps it's specific to my group or direct investing, but I know I'm not alone feeling this way.  I'm also held accountable by our equity partners and portfolio companies when we don't walk the talk, making it more noticeable and painful.

Ryan - I too am glad we established the values but find them also a source of frustration.  I'm sure Rand would say it's part of the growing pains. Within my group I can hold us accountable but I do not think we have a mechanism for accountability firm wide or with our partners.  True values also manifest in times of stress and my experience institutionally has not been great.

I only write this because I care and I know everyone else does. I do see some progress but I personally think we have a long ways to go. Curious what others think.

Jeffrey Bede  |  Group Head  |  ORIX Growth Capital |  10900 NE 4th Street, Suite 2300  |  Bellevue, WA 98004  |  t  |  425-440-2632     c  |  202-494-1776     e  |  jeff.bede@orix.com<mailto:jeff.bede@orix.com>  |  www.orix.com<http://www.orix.com/>  |  www.orix.com/capital-solution/growth-capital/<http://www.orix.com/orixgrowth>

From: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com> [mailto:ironlady@stagen.simplelists.com] On Behalf Of Farha, Ryan
Sent: Friday, July 07, 2017 3:09 PM
To: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com>
Subject: Corporate Values Reflection

I reviewed the Corporate Values today and three main thoughts came to mind:

1.       I am deeply grateful we have established corporate values and they are being integrated into our day to day

2.       ORIX desperately needs a vision to complement the values, otherwise we lack direction

3.       How meaningful can we make these values if our parent company never fully understands them? We can exist and thrive in our OUC bubble for so long, but ultimately we need buy-in from Tokyo. Personally, I don't think they fully understand what it is we are trying to do here with the OUC culture. They may pursue excellence in a completely different way than us.  How can we work to bridge the apparent gaps?

<image001.jpg><http://www.orix.com/>

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Ryan Farha  |  Managing Director, Head of Corporate/M&A  |  Legal ORIX USA Corporation | 1717 Main Street, Suite 1100 | Dallas, TX 75201 t | 214-237-2242  e | ryan.farha@orix.com<mailto:ryan.farha@orix.com> | www.orix.com<http://www.orix.com/>