Document:

Exhibit

EXHIBIT 4.1

GRAMERCY PROPERTY TRUST
2017 EMPLOYEE SHARE PURCHASE PLAN
1.Purpose.  The Trust wishes to attract employees to the Trust and its Subsidiaries and to induce employees to remain with the Trust and its Subsidiaries, and to encourage them to increase their efforts to make the Trust’s business more successful, whether directly or through its Subsidiaries.  In furtherance thereof, the Plan is designed to provide equity-based incentives to the eligible employees of the Trust and its Subsidiaries.  The Plan is intended to comply with the provisions of Section 423 of the Code and shall be administered, interpreted and construed accordingly.
2.    Definitions.  As used herein, the following definitions shall apply:
(a)    “Applicable Laws” means the legal requirements relating to the administration of employee share purchase plans, if any, under applicable provisions of federal securities laws, state corporate and securities laws, the Code, the rules of any applicable stock exchange, and the rules of any foreign jurisdiction applicable to participation in the Plan by residents therein.
(b)    “Board” means the Board of Trustees of the Trust.
(c)    “Change in Control” shall be deemed to occur upon:  
(i)    any “person,” including a “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding the Trust, any entity controlling, controlled by or under common control with the Trust, any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Trust or any such entity, and with respect to any particular Participant, the Participant and any “group” (as such term is used in Section 13(d)(3) of the Exchange Act) of which the Participant is a member), is or becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the Exchange Act), directly or indirectly, of securities of the Trust representing 50% or more of either (A) the combined voting power of the Trust’s then outstanding securities or (B) the then outstanding Shares (other than as a result of an acquisition of securities directly from the Trust); or
(ii)    the consummation of any consolidation or merger of the Trust where the shareholders of the Trust immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more of the combined voting power of the securities of the company issuing cash or securities in the consolidation or merger (or of its ultimate parent, if any); or
(iii)    there shall occur (A) any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Trust, other than a sale or disposition by the Trust of all or substantially all of the Trust’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by “persons” (as defined above) in substantially the same proportion as their ownership of the Trust immediately prior to such sale or (B) the approval by shareholders of the Trust of any plan or proposal for the liquidation or dissolution of the Trust; or
(iv)    the members of the Board at the beginning of any consecutive 24-calendar-month period (the “Incumbent Trustees”) cease for any reason other than due to death to constitute at least a majority of the members of the Board; provided that any trustee whose election, or nomination for election by the Trust’s shareholders was approved or ratified by a vote of at least a majority of the members of the Board then still in office who were members of the Board at the beginning of such 24-calendar-month period shall be deemed to be an Incumbent Trustee. 
(d)    “Code” means the Internal Revenue Code of 1986, as amended.
(e)    “Committee” means either the Board, a committee of the Board, or such executive officer appointed by the Board, that is responsible for the administration of the Plan as is designated from time to time by resolution of the Board.
(f)    “Compensation” means an Employee’s base salary from the Trust or one or more Designated Subsidiaries, including such amounts of base salary as are deferred by the Employee (i) under a qualified cash or deferred arrangement described in Section 401(k) of the Code, or (ii) to a plan qualified under Section 125 of the Code.  Compensation does not include overtime, commissions, bonuses, reimbursements or other expense allowances, fringe benefits (cash or noncash), moving expenses, deferred compensation, contributions (other than contributions described in the first sentence) made on the Employee’s behalf by the Trust or one or more Subsidiaries under any employee benefit or welfare plan now or hereafter established, and any other payments not specifically referenced in the first sentence.
(g)    “Designated Subsidiary” means a Subsidiary that has been designated by the Committee from time to time for participation in this Plan.
(h)    “Effective Date” means July 1, 2017, the date of the first Offer Period, unless the Committee determines prior to the Effective Date that the first Offer Period shall commence on a date after July 1, 2017, with such later date hereinafter referred to as the Effective Date.   However, should any Designated Subsidiary become a participating company in the Plan after such date, then such entity shall designate a separate Effective Date with respect to its employee-participants.
(i)    “Employee” means any individual, including an officer or trustee, who is an employee of the Trust or a Designated Subsidiary for purposes of Section 423 of the Code.
(j)    “Enrollment Date” means the first day of each Offer Period.
(k)    “Exchange Act” means the Securities Exchange Act of 1934, as amended.
(l)    “Exercise Date” means the last day of each Purchase Period.
(m)    “Fair Market Value” per Share as of a particular date means the closing price of Shares on the New York Stock Exchange on the relevant date (or if there were no trades on that date the last reported sales price of the Shares during regular trading house on the latest preceding date upon which a sale was reported).  If the Shares are not listed on the New York Stock Exchange, the Fair Market Value shall be as determined by the Committee on the basis of available prices for such Shares or in such manner as may be authorized by applicable regulations under the Code.  
(n)    “Offer Period” means an Offer Period established pursuant to Section 4 hereof.
(o)    “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424 (e) of the Code.
(p)    “Participant” means an Employee of the Trust or Designated Subsidiary who is actively participating in the Plan.
(q)    “Plan” means this Gramercy Property Trust 2017 Employee Share Purchase Plan, as may be amended from time to time.
(r)    “Purchase Period” means a period specified as such pursuant to Section 4(b) hereof.
(s)    “Purchase Price” shall mean the purchase price for a Share for a Purchase Period, which shall be determined by the Committee before the beginning of the Offer Period that contains such Purchase Period to be either:
(i)    A fixed percentage (to be determined in the Committee’s discretion before the beginning of such Offer Period, but not to be less than 85%) of the Fair Market Value of a Share on the Exercise Date, or
(ii)    The lesser of (A) a fixed percentage (to be determined in the Committee’s discretion before the beginning of such Offer Period, but not to be less than 85%) of the Fair Market Value of a Share on the Exercise Date, and (B) a fixed percentage (to be determined in the Committee’s discretion before the beginning of such Offer Period, but not to be less than 85%) of the Fair Market Value of a Share on the Enrollment Date.
(t)    “Reserves” means the sum of the number of Shares covered by each option under the Plan which have not yet been exercised and the number of Shares which have been authorized for issuance under the Plan but not yet placed under option.
(u)    “Shares” means common shares of beneficial interest, par value $0.01 per share, of the Trust.
(v)    “Subsidiary” means, with respect to the Trust, a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code.
(w)    “Trust” means Gramercy Property Trust, a Maryland real estate investment trust, and any successor entity, as determined by the Committee.
3.    Eligibility.  
(a)    General.  Subject to the limitations set forth in subsections (b) and (c) of this Section 3, any individual who is an Employee on a given Enrollment Date shall be eligible to participate in the Plan for the Offer Period commencing with such Enrollment Date.
(b)    Limitations on Grant and Accrual.  Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan if, (i) immediately after the grant, such Employee (taking into account Shares owned by any other person whose Shares would be attributed to such Employee pursuant to Section 424(d) of the Code) would own Shares and/or hold outstanding options to purchase Shares possessing 5% or more of the total combined voting power or value of all classes of shares of the Trust or of any Subsidiary, or (ii) such option permits the Employee’s rights to purchase Shares under all employee share purchase plans of the Trust and its Subsidiaries to accrue at a rate which exceeds $25,000 worth of Shares (determined at the Fair Market Value of the Shares at the time such option is granted) for each calendar year in which such option is outstanding at any time.  Any amounts received from an Employee which cannot be used to purchase Shares as a result of this limitation will be returned as soon as practical to the Employee without interest.  The determination of the accrual of the right to purchase Shares shall be made in accordance with Section 423(b)(8) of the Code and the regulations thereunder. 
(c)    Other Limits on Eligibility.  Notwithstanding subsection (a) above, the following Employees shall not be eligible to participate in the Plan for any relevant Offer Period, unless otherwise determined by the Committee:  (i) Employees whose customary employment is 20 hours or less per week; (ii) Employees whose customary employment is for not more than five months in any calendar year; (iii) Employees who have been employed less than one year; and (iv) Employees who are citizens or residents of a foreign jurisdiction (without regard to whether they are also U.S. citizens or resident aliens), if the grant of options to such individuals is prohibited by the laws of such jurisdiction or compliance with the laws of the foreign jurisdiction would cause the Plan to violate the requirements of Section 423 of the Code.  Notwithstanding the foregoing, the employment of an Employee of a Subsidiary which ceases to be a Subsidiary shall, automatically and without any further action, be deemed to have been terminated (and such employee shall cease to be an Employee hereunder).  The Committee may establish special rules with respect to (i) the administration of the rules contained in this subsection (c), and (ii) the eligibility of and the prior service credit for employees of companies that become affiliated with the Trust prior to the Effective Date or during an Offer Period. 
4.    Offer Periods.
(a)    The Plan shall be implemented through overlapping or consecutive Offer Periods until such time as (i) the maximum number of Shares available for issuance under the Plan shall have been purchased, or (ii) the Plan shall have been sooner terminated in accordance with Section 19 hereof.  The duration of each Offer Period shall be set in advance by the Committee, and no Offer Period shall have a duration greater than 27 months.  The initial Offer Period for the Plan shall commence on the Effective Date and last for a period of three (3) months, unless the Committee determines prior to the beginning of the initial Offer Period that a different Offer Period shall apply.  
(b)    A Participant shall be granted a separate option for each Offer Period in which he or she participates.  The option shall be granted on the Enrollment Date and shall be automatically exercised on the last day of the Offer Period.  However, with respect to any Offer Period, the Committee may specify shorter Purchase Periods within an Offer Period, such that the option granted on the Enrollment Date shall be automatically exercised in successive installments on the last day of each Purchase Period ending within the Offer Period.
(c)    Except as specifically provided herein, the acquisition of Shares through participation in the Plan for any Offer Period shall neither limit nor require the acquisition of Shares by a Participant in any subsequent Offer Period.
5.    Participation.  
(a)    An eligible Employee may become a Participant in the Plan by completing a subscription agreement authorizing payroll deductions on such form the Committee designates for evidencing elections to participate in this Plan and filing it in accordance with procedures established by the Committee for such purpose at least 10 business days prior to the Enrollment Date for the Offer Period in which such participation will commence, unless a later time for filing the subscription agreement is set by the Committee for all eligible Employees with respect to a given Offer Period or the Committee establishes another procedure for an eligible Employee to become a Participant in the Plan.
(b)    Payroll deductions for a Participant shall commence with the first scheduled payroll date commensurate with or immediately following the Enrollment Date and shall end on the last scheduled payroll date during the Offer Period, unless sooner terminated by the Participant as provided in Section 10.
6.    Payroll Deductions.
(a)    At the time a Participant files a subscription agreement, unless otherwise determined by the Committee, the Participant shall elect to have payroll deductions made during the Offer Period in a fixed whole percentage of his or her Compensation, in accordance with uniform rules established by the Committee, but such payroll deductions shall not exceed 15% of such Participant’s Compensation in effect on the Enrollment Date.
(b)    All payroll deductions made for a Participant shall be credited to the Participant’s account under the Plan.
(c)    A Participant may discontinue participation in the Plan as provided in Section 10, during the Offer Period by completing and filing with the Trust a change of status notice on the form established by the Committee for such purpose authorizing a suspension of the Participant’s payroll deductions.  Any such suspension shall be effective with the first scheduled payroll date commencing 10 business days after the Trust’s receipt of the change of status notice unless the Trust elects to process a given change in participation more quickly.
(d)    Notwithstanding the foregoing, to the extent necessary to comply with the limits set forth in Section 423(b)(8) of the Code and Section 3(b) herein, a Participant’s payroll deductions shall be decreased to zero dollars ($0).  Payroll deductions shall recommence at the rate provided in such Participant’s subscription agreement, as amended, at the time when permitted under Section 423(b)(8) of the Code and Section 3(b) herein, unless such participation is sooner terminated by the Participant as provided in Section 10.
7.    Grant of Option.  On the Enrollment Date of each Offer Period, each eligible Employee participating in such Offer Period shall be granted an option to purchase on the Exercise Date of such Offer Period (at the applicable Purchase Price) up to a number of Shares determined by dividing such Employee’s payroll deductions accumulated prior to such Exercise Date and retained in the Participant’s account as of the Exercise Date by the applicable Purchase Price; provided that in no event shall an Employee be permitted to purchase during each Offer Period more than the number of Shares determined by dividing $25,000 by the Fair Market Value of one Share on the first day of the Offer Period, such limit to be adjusted ratably by the Committee for Offer Periods greater than or less than 12 months (subject to any adjustment pursuant to Section 18), and provided further that such purchase shall be subject to the limitations set forth in Sections 3(b) and 12 hereof.  Exercise of the option shall occur as provided in Section 8 hereof, unless the Participant has withdrawn pursuant to Section 10 hereof.  The Committee may, for future Offer Periods, increase or decrease, in its absolute discretion, the maximum number of Shares an eligible Employee may purchase during an Offer Period.  The option shall expire on the last day of the Offer Period.
8.    Exercise of Option.  Unless a Participant withdraws from the Plan as provided in Section 10 hereof, his or her option for the purchase of Shares shall be exercised automatically on the Exercise Date, and the maximum number of full, and to the extent permitted by the Committee, fractional, Shares subject to an option shall be purchased for such Participant at the applicable Purchase Price with the accumulated payroll deductions in his or her account.  Any other monies left over in a Participant’s account after the Exercise Date shall be retained in the Participant’s account for the subsequent Offer Period, subject to earlier withdrawal by the Participant as provided in Section 10 hereof.  A Participant’s option to purchase Shares hereunder is exercisable only by him or her.
9.    Delivery.  
(a)    Participants are not permitted to voluntarily or involuntarily sell or transfer any Shares acquired during an Offer Period for a period of six (6) months following the applicable Exercise Date, unless the Committee determines that a different holding period shall apply and communicates such to Participants, provided that any change to lengthen the holding period shall be taken by the Committee prior to the beginning of the applicable Offer Period and communicated to Participants prior to the commencement of such Offer Period.
(b)    Following the purchase of Shares after the exercise of a Participant’s option, a “book entry” (by computerized or manual entry) shall be made in the records of the Trust to evidence such acquisition of Shares under the Plan.  After the expiration of any required holding period during which Shares may not be transferred, upon receipt of a request from a Participant, the Trust shall arrange the delivery to such Participant, as promptly as practicable, of a certificate representing the Shares purchased upon exercise of the Participant’s option.  Notwithstanding the foregoing, upon such a request from a Participant, the Trust may permit the electronic transfer of the Shares acquired upon exercise of the Participant’s option.
10.    Withdrawal; Termination of Employment.
(a)    A Participant may terminate participation during any Offer Period by electing to withdraw all but not less than all of the payroll deductions credited to the Participant’s account and not yet used to exercise the Participant’s option under the Plan.  Upon such election, all of the Participant’s payroll deductions credited to the Participant’s account will be paid to such Participant as promptly as practicable after receipt of notice of withdrawal, and the Participant’s option for the Offer Period will be automatically terminated, and no further payroll deductions for the purchase of Shares will be made during the Offer Period.  If a Participant withdraws from an Offer Period, payroll deductions will not resume at the beginning of the succeeding Offer Period unless the Participant timely delivers to the Trust a new subscription agreement.  The election described above will be effective only upon a Participant giving written notice to the Trust, at such time as may be required by the Committee, on the form established by the Committee for such purpose.  
(b)    Upon termination of a Participant’s employment relationship for any reason whatsoever, including with or without cause, at a time more than three (3) months from the next scheduled Exercise Date, the payroll deductions credited to such Participant’s account during the Offer Period but not yet used to exercise the option will be returned to such Participant or, in the case of his/her death, to the person or persons entitled thereto under Section 14, and such Participant’s option will be automatically terminated.  Upon termination of a Participant’s employment relationship for any reason whatsoever, including with or without cause within three (3) months of the next scheduled Exercise Date, the payroll deductions credited to such Participant’s account during the Offer Period but not yet used to exercise the option will be applied to the purchase of Shares on the next Exercise Date, unless the Participant (or in the case of the Participant’s death, the person or persons entitled to the Participant’s account balance under Section 14) withdraws from the Plan by submitting a change of status notice in accordance with subsection (a) of this Section 10.  In such a case, no further payroll deductions will be credited to the Participant’s account following the Participant’s termination of employment and the Participant’s option under the Plan will be automatically terminated after the purchase of Shares on the next scheduled Exercise Date.
(c)    The Committee may, in its sole discretion, require that any Shares credited to a Participant’s account be delivered to the Participant in the form of a physical certificate, or otherwise transferred to an outside account maintained by the Participant, following the termination of the Participant’s employment with the Trust.  A Participant shall execute any documents required by the Trust to effectuate the foregoing.
11.    Interest.  No interest shall accrue on the payroll deductions credited to a Participant’s account under the Plan.
12.    Shares; Maximum Purchasable.
(a)    The maximum number of Shares which shall be made available for sale under the Plan shall be 250,000 Shares, subject to adjustment upon changes in capitalization of the Trust as provided in Section 18.  In addition, the Committee may, in its discretion, impose a maximum limit on the number of Shares available for sale during any Offer Period or Purchase Period.  If the Committee determines that on a given Exercise Date the number of Shares with respect to which options are to be exercised may exceed (x) the number of Shares then available for sale under the Plan or (y) the number of Shares available for sale under the Plan on the Enrollment Date of the Offer Period, or on the first day of a Purchase Period, in which such Exercise Date is to occur, the Committee may make a pro rata allocation of the Shares remaining available for purchase on such Enrollment Dates or Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine to be equitable, and shall either continue all Offer Periods then in effect or terminate any one or more Offer Periods then in effect pursuant to Section 19, below.  If and to the extent that any right to purchase reserved Shares shall not be exercised by any Employee for any reason or if such right to purchase shall terminate as provided herein, such Shares that have not been so purchased hereunder shall again become available for the purposes of the Plan unless the Plan shall have been terminated, but such unpurchased Shares shall not be deemed to increase the aggregate number of Shares specified above to be reserved for purposes of the Plan (subject to adjustment as provided in Section 18).  
(b)    A Participant will have no interest or voting right in Shares covered by the Participant’s option until such Shares are actually purchased on the Participant’s behalf in accordance with the applicable provisions of the Plan.
(c)    No adjustment shall be made with respect to any Shares subject to an option for dividends, distributions or other rights for which the record date is prior to the actual date of purchase of such Shares.
(d)    Unless otherwise determined by the Committee, Shares to be delivered to Participants under the Plan will be registered in the name of the Participant.
13.    Administration.  
(a)    In General.  The Plan shall be administered by the Committee, which shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan.  Every finding, decision and determination made by the Committee shall, to the full extent permitted by Applicable Law, be final and binding upon all persons.  Except as set forth in Section 13(b), the Committee may delegate its duties to one or more officers of the Trust or other persons.
(b)    Rule 16b-3 Limitations.  Notwithstanding the provisions of Section 13(a), in the event that the Trust shall at any time be subject to Section 16 promulgated under the Exchange Act, and Rule 16b-3 promulgated thereunder or any successor provision (“Rule 16b-3”) provides specific requirements for the administrators of plans of this type, then at such time the Plan shall be administered with respect to Participants who are “officers” within the meaning of Rule 16a-1(f) only by such a body and in such a manner as shall comply with the applicable requirements of Rule 16b-3; provided, however, that no failure of the Committee to meet such applicable requirements of Rule 16b-3 shall render ineffective or void any option granted under this Plan.
14.    Designation of Beneficiary.
(a)    Each Participant will file a written designation of a beneficiary who is to receive any Shares and cash, if any, from the Participant’s account under the Plan in the event of such Participant’s death.  If a Participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective.
(b)    Such designation of beneficiary may be changed by the Participant (and the Participant’s spouse, if any) at any time by written notice.  In the event of the death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living (or in existence) at the time of such Participant’s death, the Trust shall deliver such Shares and/or cash to the executor or administrator of the estate of the Participant.
15.    Transferability.  Neither payroll deductions credited to a Participant’s account nor any rights with regard to the exercise of an option or to receive Shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution, or as provided in Section 14 hereof) by the Participant.  Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Committee may treat such act as an election to withdraw funds from an Offer Period in accordance with Section 10.
16.    Use of Funds.  All payroll deductions received or held by the Trust under the Plan may be used by the Trust for any corporate purpose, and the Trust shall not be obligated to segregate such payroll deductions.
17.    Reports.  Individual accounts will be maintained for each Participant in the Plan.  Statements of account will be made available to Participants electronically, or in hardcopy if requested, at least annually, which statements will set forth the amounts of payroll deductions, the Purchase Price, the number of Shares purchased and the remaining cash balance, if any.
18.    Adjustments Upon Changes in Capitalization; Changes in Control.
(a)    Adjustments Upon Changes in Capitalization.  Subject to any required action by the shareholders of the Trust, the Reserves, the Purchase Price, the maximum number of Shares available for issuance under the Plan, the maximum number of Shares that may be purchased in any Offer Period or Purchase Period, as well as any other terms that the Committee determines require adjustment shall be proportionately adjusted for any (i) merger, consolidation, dissolution, spin-off transaction, liquidation, reorganization, exchange of Shares, sale of all or substantially all of the assets or Shares of the Trust or its Subsidiaries or a transaction similar thereto, (ii) any dividend in Shares, extraordinary cash dividends, Share split, reverse Share split, combination of Shares, reclassification, recapitalization or other similar change in the capital structure of the Trust or its Subsidiaries, or any distribution to holders of Shares other than ordinary course cash dividends, shall occur or (iii) any other event shall occur which in the judgment of the Committee necessitates action by way of adjusting the terms of the outstanding awards.  Such adjustment shall be made by the Committee in such manner as the Committee deems appropriate and its determination shall be final, binding and conclusive.  Except as the Committee determines, no issuance by the Trust of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment by reason hereof shall be made with respect to, the Reserves and the Purchase Price.
(b)    Changes in Control.  In the event of a Change in Control, each option under the Plan shall be assumed by such successor real estate investment trust or corporation or a parent or subsidiary of such successor real estate investment trust or corporation, unless the Committee determines prior to the Change in Control, in the exercise of its sole discretion and in lieu of such assumption, to shorten the Offer Period then in progress by setting a new Exercise Date (the “New Exercise Date”).  If the Committee shortens the Offer Period then in progress in lieu of assumption in the event of a Change in Control, the Committee shall notify each Participant in writing, at least 10 days prior to the New Exercise Date, that the Exercise Date for the Participant’s option has been changed to the New Exercise Date and that the Participant’s option will be exercised automatically on the New Exercise Date, unless prior to such date the Participant has withdrawn from the Offer Period as provided in Section 10.  For purposes of this subsection, an option granted under the Plan shall be deemed to be assumed if, in connection with the Change in Control, the option is replaced with a comparable option with respect to shares of the successor real estate investment trust or corporation or Parent thereof.  The determination of option comparability shall be made by the Committee prior to the Change in Control and its determination shall be final, binding and conclusive on all persons.
(c)    Dissolution or Liquidation.  In the event of the proposed dissolution or liquidation of the Trust, the Offer Period shall terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board.
19.    Amendment or Termination.
(a)    The Committee may at any time and for any reason terminate or amend the Plan.  Except as provided in Section 18, no such termination can affect options previously granted, provided that the Plan or any one or more Offer Periods may be terminated by the Committee on any Exercise Date or by the Committee establishing a new Exercise Date with respect to any Offer Period and/or any Purchase Period then in progress if the Committee determines that the termination of the Plan or such one or more Offer Periods is in the best interests of the Trust and its shareholders.  Except as provided in Section 18 and this Section 19, no amendment may make any change in any option theretofore granted which adversely affects the rights of any Participant without the consent of affected Participants.  To the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other Applicable Law), the Trust shall obtain shareholder approval in such a manner and to such a degree as required.
(b)    Without shareholder consent and without regard to whether any Participant rights may be considered to have been “adversely affected,” the Committee shall be entitled to limit the frequency and/or number of changes in the amount withheld during Offer Periods, change the amount of Shares available for purchase during an Offer Period or a Purchase Period, change the length of Purchase Periods within any Offer Period, determine the length of any future Offer Period, determine whether future Offer Periods shall be consecutive or overlapping, establish the exchange ratio applicable to amounts withheld in a currency other than U.S.  dollars, establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable foreign jurisdictions, permit payroll withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the Trust’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Shares for each Participant properly correspond with amounts withheld from the Participant’s Compensation, and establish such other limitations or procedures as the Committee determines in its sole discretion advisable and which are consistent with the Plan.
(c)    In the event the Board determines that the ongoing operation of the Plan may result in unfavorable financial accounting consequences, the Board may, in its discretion and, to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited to:
(i)    altering the Purchase Price for any Offer Period including an Offer Period underway at the time of the change in Purchase Price; and
(ii)    shortening any Offer Period so that Offer Period ends on a new Exercise Date, including an Offer Period underway at the time of the Board action.
Such modifications or amendments shall not require shareholder approval or the consent of any Participants.
20.    Notices.  All notices or other communications by a Participant to the Trust under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Committee at the location, or by the person, designated by the Committee for the receipt thereof.
21.    Conditions Upon Issuance of Shares.
(a)    The Plan, and the grant and exercise of options to purchase Shares hereunder, and the Trust’s obligation to sell and deliver Shares upon the exercise of options, shall be subject to all applicable federal, state and foreign laws, rules and regulations, and to such approvals by any regulatory or governmental agency as may be required.  The Trust shall not be required to issue or deliver any certificates for such Shares prior to the completion of any registration or qualification of such Shares under, and the obtaining of any approval under or compliance with, any state or federal law, or any ruling or regulation of any government body which the Trust shall, in its sole discretion, determine to be necessary or advisable.  Certificates for Shares issued hereunder may be legended as the Committee may deem appropriate.
(b)    The Participant shall take whatever additional actions and execute whatever additional documents the Committee may in its reasonable judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on the Participant pursuant to the Plan.
22.    Term of Plan.  The Plan shall become effective on June 15, 2017, provided that the Plan is approved by the requisite percentage of the shareholders of the Trust, and shall continue in effect until all Shares authorized for sale under Section 12(a) have been sold, unless earlier terminated by the Committee under Section 19.  
23.    Disqualifying Dispositions.  If Shares acquired under the Plan are disposed of in a disposition that does not satisfy the holding period requirements of Section 423(a) of the Code, such Participant shall notify the Trust in writing as soon as practicable thereafter of the date and terms of such disposition and, if the Trust (or any affiliate thereof) thereupon has a tax-withholding obligation, shall pay to the Trust (or such affiliate) an amount equal to any withholding tax the Trust (or affiliate) is required to pay as a result of the disqualifying disposition (or satisfy such other arrangements as may be permitted by the Committee.)
24.    No Employment Rights.  The Plan does not, directly or indirectly, create any right for the benefit of any employee or class of employees to purchase any Shares under the Plan, or create in any employee or class of employees any right with respect to continuation of employment by the Trust or a Subsidiary, and it shall not be deemed to interfere in any way with such employer’s right to terminate, or otherwise modify, an employee’s employment at any time for any reason, including with or without cause.
25.    No Effect on Retirement and Other Benefit Plans.  Except as specifically provided in a retirement or other benefit plan of the Trust or a Subsidiary, participation in the Plan shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan of the Trust or a Subsidiary, and shall not affect any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation.  The Plan is not a “retirement plan” or “welfare plan” under the Employee Retirement Income Security Act of 1974, as amended.
26.    Effect of Plan.  The provisions of the Plan shall, in accordance with its terms, be binding upon, and inure to the benefit of, all successors of each Participant, including, without limitation, such Participant’s estate and the executors, administrators or trustees thereof, heirs and legatees, and any receiver, trustee in bankruptcy or representative of creditors of such Participant.
27.    Governing Law.  The Plan is to be construed in accordance with and governed by the internal laws of the State of Maryland (a) without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Maryland to the rights and duties of the parties, except to the extent the internal laws of the State of Maryland are superseded by the laws of the United States, and (b) regardless of any provision in an employment agreement that designates the applicable law for purposes of such employment agreement to be other than the laws of the State of Maryland.  Should any provision of the Plan be determined by a court of law to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable.
28.    Dispute Resolution.  Any controversy or claim arising out of or relating to this Plan that is not resolved by the Trust and a Participant shall be submitted to arbitration in New York, New York in accordance with New York law and the procedures of the American Arbitration Association.  The determination of the arbitrator(s) shall be conclusive and binding on the Trust and the Participant and judgment may be entered on the arbitrator(s)’ award in any court having jurisdiction.Exhibit

Exhibit 10.38

July 19, 2017

Personal and Confidential
John Suydam
[Home Address]

    
Dear John:

This letter confirms the terms in connection with your continued employment at Apollo Management Holdings, L.P. (the “Company”). 

		
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	Position & Reporting.  You will continue to be employed by the Company as its Chief Legal Officer and shall have those duties generally commensurate with your title. You will report to the Company’s Executive Committee.

		
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	Duties.  You agree that you will (i) devote your full working time, attention and abilities to your duties at the Company; (ii) promote and protect the interests and reputation of the Company and its Affiliates; and (iii) comply with all rules, policies and regulations of the Company from time to time.  Notwithstanding the foregoing, you shall be permitted (a) subject to the approval of the Company, to accept directorships that do not rise to a conflict or involve a Competitive Business (as defined below) in for profit and not for profit enterprises and (b) to engage in charitable, cultural, educational and civic activities, so long as such activities do not interfere with the performance of your duties.  

		
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	Annual Base Salary.  You will be entitled to an annual base salary at the rate of $2,000,000 (the “Base Salary”), which Base Salary shall be paid in installments not less frequently than monthly.  This is an exempt position; therefore, no overtime will be granted.  All amounts payable under this letter agreement are subject to applicable withholdings.

		
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	Guaranteed Bonus. For services performed in each calendar year, you will receive an annual bonus (the “Guaranteed Bonus”) payable in Class A Shares of the Company (the “Class A Shares”) having an aggregate value of $500,000, based on the average closing price of a Class A Share on the New York Stock Exchange for the ten trading days preceding the date of grant (rounded down to the nearest whole share). The Class A Shares shall vest in equal annual installments over a three (3) year period, subject to your continued employment through each vesting date.

		
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	Carried Interest Award.  You will be entitled to receive points in the general partner of Apollo Investment Fund IX, LP and its parallel funds (collectively, the “Funds”) on the terms generally applicable to other senior partners receiving points in the Funds and as previously described to you and which will be set forth in an award letter.  

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	•
	Benefit Plans.  You will be eligible to participate in the various group health, disability and life insurance plans and other employee programs, including sick and vacation time, as generally are offered by the Company to similarly situated employees from time to time. Additionally, you will continue to be entitled to the benefits you previously received from the Company.  The Company reserves the right to modify or terminate any such employee program at any time.  

		
	•
	Notice Entitlement.  The Company may terminate your employment with or without Cause.  The period of notice that we will give you to terminate your employment without Cause, and other than your death or Disability, is 90 days.  The Company may terminate your employment for Cause immediately and without notice.  We reserve the right to require you not to be in the Company’s offices and/or not to undertake all or any of your duties and/or not to contact Company clients, colleagues or advisors (unless otherwise instructed) during all or part of any period of notice of your termination of service.  During any such period, you remain a service provider to the Company with all duties of fidelity and confidentiality to the Company and subject to all terms and conditions of your employment and should not be employed or engaged in any other business.  

		
	•
	Legal Fees. The Company shall pay or reimburse you for the actual legal fees incurred in connection with the negotiation of this Agreement, up to a maximum of $7,500, provided, however that any such payment or reimbursement must be made in the 2017 calendar year.

		
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	Payment in Lieu of Notice.  Subject to the “Employment in Good Standing; Compliance” section below, we reserve the right to pay you in lieu of any required notice period, the equivalent of your Base Salary on a termination without Cause.

		
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	Severance.  If your employment is terminated by the Company without Cause (and other than due to your death or Disability) or by you for Good Reason, in addition to any other rights you may have with respect to vesting, and subject to your execution without revocation of a general release of claims in favor of the Company prior to the 60th day following the Termination Date, the Company will (i) pay you six months’ worth of your annual Base Salary, payable in monthly installments over a 6-month period commencing on the 61st day following the Termination Date, and (ii) subject to your proper election to continue your healthcare coverage pursuant the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) and your continued eligibility to continue such coverage under COBRA, the Company will pay the COBRA Premium for a period of 6 months commencing on the 61st day following the Termination Date. As used herein, “COBRA Premium” means the portion of the monthly premium that the Company paid on your behalf during your employment with the Company.  The COBRA Premiums will be paid on an after-tax basis or subject to imputed income treatment to the extent required by applicable law.  

		
	•
	No Solicitation.  Without prejudice to your express and implied duties as an employee of the Company, you agree that, for the following periods, you shall not directly or indirectly:

		
	1.
	During your employment with the Company and for 12 months following the Termination Date and in connection with a Competitive Business, solicit or induce any Restricted Entity to terminate (or 

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diminish in any respect) his, her or its relationship with the Company or its successors, assigns or Affiliates; and
		
	2.
	During your employment with the Company and for 12 months following the Termination Date and in connection with a Competitive Business, otherwise interfere with or damage (or attempt to impede or otherwise interfere with or damage) any business relationship and/or agreement to which the Company or any Affiliate thereof is a party, including without limitation any such relationship with any Restricted Entity.

		
	•
	No Competition. You agree that, during your employment with or provision of services to the Company and, for 12 months thereafter, you will not, directly or indirectly (including through another person): (a) engage in any Competitive Business for your own account; (b) enter the employ of, or render any services to, any person engaged in any Competitive Business; or (c) acquire a material financial interest in any Competitive Business.  Nothing herein or in the 2014 Award Letter (as defined below) shall, however, prohibit you from: (x) becoming employed by, or becoming a partner in, a law firm that is listed in the AmLaw 200 in the year in which the Termination Date occurs; or (y) providing legal services to any person as a member of a prominent law firm or being a passive owner of not more than 2% of the outstanding stock of any class of a company or corporation that is publicly quoted or listed, so long as you have no active participation in the business of such company or corporation.  As used in this letter agreement: (i) “person” means an individual, a corporation, limited liability company, partnership, association, trust or any other entity; and (ii) activity undertaken “directly or indirectly” includes any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner or a stockholder, member, partner, joint venturer or otherwise, and includes any direct or indirect participation in such enterprise as an employee, consultant, director, officer, licensor of technology or otherwise.  You further acknowledge and agree that you will comply with the obligations and covenants set forth in the Annex D of the August 12, 2014 award letter (the “2014 Award Letter”) concerning your carried interest points in Apollo Advisors VIII, L.P., which obligations and covenants are in addition to your obligations and covenants in this letter agreement. 

		
	•
	Subsequent Engagement.  Notwithstanding anything to the contrary contained herein, while you are employed by the Company, prior to accepting (or entering into a written understanding that provides for your) employment or consulting engagement with any person or entity unrelated to the Company, you will provide (i) written notice to the Company of such offer, it being understood that your acceptance of any such offer before seven (7) days have elapsed following such notice shall be treated as a termination by the Company for Cause, and (ii) a copy of non-competition provisions of this letter agreement and the 2014 Award Letter to any such prospective employer or service recipient, with a copy provided simultaneously to the Company.  

		
	•
	Remedies; Severability.  Because your services are unique and you have had and will have access during the course of your employment to Confidential Information, money damages would be an inadequate remedy for any breach of the restrictive covenants contained in this letter agreement (the “Protective Covenants”).  Therefore, in the event of a breach or threatened breach of any provision of a Protective Covenant, the Company or its successors or assigns may, in addition to other rights and remedies existing in their favor at law or in equity, apply to any court of competent jurisdiction for 

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specific performance and/or injunctive or other relief in order to enforce, or prevent any violations of, the provisions hereof (without posting a bond or other security). If any provision of this letter agreement shall be held invalid, illegal or unenforceable in any jurisdiction for any reason, including, without limitation, the duration of such provision, its geographical scope or the extent of the activities prohibited or required by it, then, to the fullest extent permitted by law, (i) all other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in order to carry out the intent of the parties hereto as nearly as may be possible, (ii) such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of any other provision hereof, and (ii) any court or arbitrator having jurisdiction thereover shall have the power to reform such provision to the extent necessary for such provision to be enforceable under applicable law.  You hereby acknowledge and agree with the Company that (a) each of the Protective Covenants is an entirely separate, severable and independent covenant and restriction on you; (b) the duration, extent and application of each of the Protective Covenants is no greater than is necessary for the protection of the goodwill and trade connections of the business of the Company; and (c) in the event that any restriction on you contained in the Protective Covenants shall be found void but would be valid if some part thereof were deleted, such restrictions shall apply with any such deletion as may be necessary to make it valid and effective.

		
	•
	Indemnification. You shall not be liable to the Company for any loss, claim, damage or liability occasioned by any acts or omissions in the performance of your services hereunder, unless it shall ultimately be determined by final judicial decision from which there is no further right to appeal (a “Final Adjudication”) that such loss, claim, damage or liability is due to an act or omission of you made in bad faith or with criminal intent.

You shall be indemnified to the fullest extent permitted by law by the Company against any losses, claims, damages, liabilities and expenses (including attorneys’ fees, judgments, fines, penalties and amounts paid in settlement) incurred by or imposed upon you by reason of or in connection with any action taken or omitted by you arising out of your status as an employee or agent of the Company or any of its Affiliates or your activities on behalf of the Company, including in connection with any action, suit, investigation or proceeding before any judicial, administrative, regulatory or legislative body or agency to which you may be made a party or otherwise involved or with which you shall be threatened by reason of being or having been an employee of the Company or by reason of serving or having served, at the request of the Company, as a director, officer, consultant, advisor, manager, member or partner of any enterprise in which the Company has or had a financial interest; provided that the Company may, but shall not be required to, indemnify you with respect to any matter as to which there has been a Final Adjudication that your acts or failure to act were in bad faith or with criminal intent. 
The right to indemnification granted by this section shall be in addition to any rights to which you may otherwise be entitled and shall inure to the benefit of your successors by operation of law or valid assigns. The Company shall pay the expenses incurred by you in defending a civil or criminal action, suit, investigation or proceeding in advance of the final disposition of such action, suit, investigation or proceeding, upon receipt of an undertaking by you to repay such payment if there shall be a Final Adjudication that you are not entitled to indemnification as provided herein. In any suit brought by you to enforce a right to indemnification hereunder it shall be a defense that you have not met the applicable standard of conduct set forth in this section, and in any suit in the name of the Company to recover expenses advanced pursuant to the terms of an undertaking the Company shall be entitled to recover such expenses upon Final Adjudication that you have not met the applicable standard of conduct set 

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forth in this section. In any such suit brought to enforce a right to indemnification or to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that you are not entitled to be indemnified, or to an advancement of expenses, shall be on the Company.  
Any indemnification pursuant to this section shall be made only out of the assets of the Company and/or its valid assignees. In no event may you subject the members of the Company to personal liability by reason of the indemnification provisions set forth in this letter agreement. The Company may enter into appropriate indemnification agreements and/or arrangements reflective of the provisions of this section and obtain appropriate insurance coverage on behalf and at the expense of the Company to secure the Company’s indemnification obligations hereunder and may enter into appropriate indemnification agreements and/or arrangements reflective of the provisions of this section. 
No indemnification shall be denied in whole or in part pursuant to this section because of your interest in the transaction with respect to which the indemnification applies. You shall, in the performance of your duties, be fully protected in relying in good faith upon the records of the Company, its Affiliates and their respective direct and indirect subsidiaries and on such information, opinions, reports and statements presented to any of the foregoing by any of the respective officers, directors or employees, or committees of the board, or by any other person as to matters that you reasonably believe are within such other person’s professional or expert competence.
To the extent that, at law or in equity, you have duties (including fiduciary duties) and liabilities relating thereto to the Company, you shall not be liable to the Company for your good faith reliance on the provisions of this section. The provisions set forth herein regarding indemnification shall survive any termination of your employment or any termination of this letter agreement, in each case, regardless of the reason for such termination.
No amendment, modification or repeal of this section or any provision hereof shall in any manner terminate, reduce or impair your right to be indemnified by the Company or any of its Affiliates, nor the obligations of the Company or any of its Affiliates to indemnify you under and in accordance with the provisions of this section as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole or-in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted.
		
	•
	Employment in Good Standing; Compliance.  As you are aware, the firm is subject to and has various compliance procedures in place.  Accordingly, you understand that your continued association with the Company and corresponding payment of the foregoing amounts will be subject to your continued employment in good standing, which will include, among other things, your adherence to applicable laws and the Company’s policies and procedures and other applicable compliance manuals (including, without limitation, obligations with regard to confidential information), copies of which will be made available to you.  You agree to execute any customary forms and agreements in connection therewith.  Nothing in this letter agreement shall be construed as establishing any right to continued employment with the Company.

		
	•
	Choice of Law; Arbitration; Waiver of Jury Trial.  This letter agreement shall be governed by and construed in accordance with the laws of the State of New York (without regard to any conflicts of laws principles thereof that would give effect to the laws of another jurisdiction), and any dispute or controversy arising out of or relating to this letter agreement or your employment, other than injunctive relief, will 

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be settled exclusively by arbitration, conducted before a single arbitrator in New York County, New York (applying New York law) in accordance with, and pursuant to, the Employment Arbitration Rules and Procedures of JAMS (“JAMS”), a copy of which rules, which are available at http://www.jamsadr.com/rules-employment-arbitration/, have been reviewed by you in their current form.  The arbitrator shall have the power to rule on his or her own jurisdiction, including any objections with respect to the existence, scope or validity of this arbitration clause.  The arbitration shall be conducted on a strictly confidential basis, and neither party shall disclose the existence of a claim, the nature of a claim, any documents, exhibits, or information exchanged or presented in connection with such a claim, or the result of any action (collectively, “Arbitration Materials”), to any third party, except as required by law, with the sole exception of their legal counsel and parties engaged by that counsel to assist in the arbitration process, who also shall be bound by these confidentiality terms.  The arbitrator shall be authorized to issue any award a court could issue except that, to the extent permitted by law, the arbitrator shall not be authorized to award punitive damages.  No discovery shall be permitted as part of any arbitration that may take place under this provision.  The decision of the arbitrator will be final and binding upon the parties hereto.  Any arbitral award may be entered as a judgment or order in any court of competent jurisdiction.  Either party may commence litigation in court to obtain injunctive relief in aid of arbitration, to compel arbitration, or to confirm or vacate an award, to the extent authorized by the Federal Arbitration Act or the New York Arbitration Act.  You and the Company shall share the JAMS administrative fees and the arbitrator’s fee and expenses.  Each party will pay its own attorneys’ fees.  You and the Company each agree that any arbitration will be conducted only on an individual basis and that no dispute between the parties relating to this letter agreement may be consolidated or joined with a dispute between any other employee and the Company or any of its Affiliates, nor may you seek to bring your dispute on behalf of other employees, independent contractors or consultants of the Company or any of its Affiliates as a class or collective action.  The parties agree to take all steps necessary to protect the confidentiality of the Arbitration Materials in connection with any such proceeding, agree to file all Confidential Information (and documents containing Confidential Information) under seal, and agree to the entry of an appropriate protective order encompassing the confidentiality terms of this letter agreement.  TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, YOU AND THE COMPANY HEREBY WAIVE AND COVENANT THAT YOU AND THE COMPANY WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY MATTERS CONTEMPLATED HEREBY, WHETHER NOW OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AND AGREE THAT ANY OF THE COMPANY OR ANY OF ITS AFFILIATES OR YOU MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE COMPANY AND ITS AFFILIATES, ON THE ONE HAND, AND YOU, ON THE OTHER HAND, IRREVOCABLY TO WAIVE THE RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN SUCH PARTIES ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THAT ANY PROCEEDING PROPERLY HEARD BY A COURT UNDER THIS AGREEMENT 

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WILL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

		
	•
	Section 409A Compliance.  If any payments and benefits under this letter agreement are deemed to be nonqualified deferred compensation subject to Section 409A, the following rules of construction shall apply to that portion of the payment or benefit. Any termination of your employment triggering payments or benefits under this paragraph must constitute a “separation from service” under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-l(h) before distribution of such payments or benefits can commence. To the extent that the termination of your employment does not constitute a separation from service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-l(h) (as the result of further services that are reasonably anticipated to be provided by you to the Company at the time your employment terminates), any benefits payable under this letter agreement upon your termination (other than due to your death) that constitute nonqualified deferred compensation under Section 409A shall be delayed until after the date of a subsequent event constituting a separation of service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-l(h) (or if earlier, such other payment date or event as may be provided for with the respect to such deferred compensation). For purposes of clarification, this paragraph shall not cause any forfeiture of benefits on your part, but shall only act as a delay until such time as a “separation from service” occurs. Further, if you are a “specified employee” (as that term is used in Section 409A) on the date your separation from service becomes effective and the payment of the amounts under this letter agreement constitute nonqualified deferred compensation, the payment of which would result in additional taxes or penalties under Section 409A, then such payments shall be delayed until the first business day following the six (6)-month anniversary of the date your separation from service becomes effective, but only to the extent necessary to avoid such additional taxes or penalties under Section 409A. On the first business day following the six (6)-month anniversary of the date your separation from service becomes effective, the Company shall pay you in a lump sum the aggregate value of the nonqualified deferred compensation that the Company otherwise would have paid you prior to that date under this letter agreement. It is intended that each installment of the payments and benefits provided under this letter agreement shall be treated as a separate “payment” for purposes of Section 409A.

		
	•
	Miscellaneous.  This letter agreement may not be modified or amended unless in writing signed by the undersigned parties.  Any notice required hereunder shall be made in writing, as applicable, to the Company in care of the Global Head of Human Capital at her principal office location or to you at your home address most recently on file with the Company.  Except for an assignment by the Company of this letter agreement to an Affiliate, this letter agreement may not be assigned by the parties other than as expressly provided herein.  This letter agreement may be executed through the use of separate signature pages or in any number of counterparts, with the same effect as if the parties executing such counterparts had executed one counterpart.  

[Continues on next page]

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Please acknowledge your acceptance and the terms laid out in this letter agreement on or before the date that is five (5) business days from the date hereof.  You confirm that in signing this letter agreement you have not relied on any warranty, representation, assurance or promise of any kind whatsoever other than as are expressly set out in this letter agreement or in the plans or documents referenced herein.  At Apollo, we are passionate about delivering uncommon value to our investors and shareholders.  

Sincerely,

/s/ Lisa Barse Bernstein                
Lisa Barse Bernstein
Senior Partner, Global Head of Human Capital

Agreed and Accepted:

/s/ John Suydam__________________________
John Suydam

July 19, 2017_____________________________
Date 

[Employment Agreement Signature Page]

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Additional Definitions

“Affiliate” of the Company means any other person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with the Company and shall include, without limitation, Apollo-affiliated management companies, funds, and managed accounts. 
“Cause” means a termination of your employment, based upon a finding by the Company, acting in good faith, after the occurrence of any of the following: (a) you are convicted of a criminal offense constituting a felony or involving fraud, theft or dishonesty; (b) your intentional violation of law in connection with any transaction involving the purchase, sale, loan or other disposition of, or the rendering of investment advice with respect to, any security, futures or forward contract, insurance contract, debt instrument, financial instrument or currency; (c) your dishonesty, bad faith, gross negligence, willful misconduct, fraud or willful or reckless disregard of duties in connection with the performance of any services on behalf of the Company or any of its Affiliates or your engagement in conduct which is materially injurious to the Company, monetarily or otherwise; (d) your intentional failure to comply with any reasonable directive by a supervisor in connection with the performance of any services on behalf of the Company; (e) your intentional breach of any material provision of this document or any other agreements you have entered into with the Company or any of its Affiliates; (f) your material violation of any written policies adopted by the Company or its Affiliates governing the conduct of persons performing services on behalf of the Company or such Affiliate or your non-adherence to the Company’s policies and procedures or other applicable Company compliance manuals; (g) the taking of or omission to take any action that has caused or substantially contributed to a material deterioration in the business or reputation of the Company or any of its Affiliates, or that was otherwise materially disruptive of their business or affairs; provided, however, that the term Cause shall not include for this purpose any mistake of judgment made in good faith with respect to any transaction respecting (i) a portfolio investment for an account managed by the Company or (ii) a strategic investment undertaken on behalf of the Company or any of its Affiliates; (h) the failure by you to devote a significant portion of time to performing services as an agent of the Company without the prior written consent of the Company, other than by reason of death or Disability; (i) the obtaining by you of any material improper personal benefit as a result of a breach by you of any covenant or agreement (including, without limitation, a breach by you of the Company's code of ethics or a material breach by you of other written policies furnished to you relating to personal investment transactions or of any covenant, agreement, representation or warranty contained in any limited partnership agreement); or (j) your suspension or other disciplinary action against you by an applicable regulatory authority; provided, however, that if a failure, breach, violation or action or omission described in any of clauses (d) to (g) is capable of being cured, you have failed to do so after being given notice and a reasonable opportunity (and at least 30 days) to cure.  As used in this definition, “material” means more than de minimis.

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

“Competitive Business” means (i) any alternative asset management business (other than the business of the Company, its successors or assigns or Affiliates) in which more than 25% of the total capital committed is third party capital, that advises, manages or invests the assets of and/or makes investments in private equity funds, hedge funds, collateralized debt obligation funds, commercial mortgages, commercial real estate related investments, residential mortgages, residential real estate related investments, business development corporations, special purpose acquisition companies, life settlement investments, life insurance company asset investment vehicles, credit-based asset management vehicles, leveraged loans or other alternative asset investment vehicles, (ii) persons who manage, advise or own such investment vehicles, or (iii) any proprietary investing desk of an investment bank or commercial bank.

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“Confidential Information” means information that is not generally known to the public and that is or was used, developed or obtained by the Company and its Affiliates, including but not limited to, (i) information, observations, procedures and data obtained by you while employed by or providing services to the Company or any of its Affiliates, (ii) products or services, (iii) costs and pricing structures, (iv) analyses, (v) performance data, (vi) computer software, including operating systems, applications and program listings, (vii) flow charts, manuals and documentation, (viii) data bases, (ix) accounting and business methods, (x) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice, (xi) investors, customers, vendors, suppliers and investor, customer, vendor and supplier lists, (xii) other copyrightable works, (xiii) all production methods, processes, technology and trade secrets, (xiv) this letter agreement and nonpublic agreements of the Company and its Affiliates, (xv) investment memoranda and investment documentation concerning any potential, actual or aborted investments, (xvi) compensation terms, levels, and arrangements of employees and other service providers of the Company and its Affiliates, and (xvii) all similar and related information in whatever form.  Confidential Information will not include any information that is generally available to the public prior to the date you propose to disclose or use such information.  For this purpose, Confidential Information will be deemed generally available to the public only if all material features comprising such information have been published in combination.
“Disability” means (i) you are not able to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, you are receiving income replacement benefits for a period of not less than three (3) months under an accident or health plan covering employees of the Company.  The determination of whether or not a Disability exists for purposes of this letter agreement shall be made by a physician selected by the Company and reasonably acceptable to you and who is qualified to give such professional medical assessment.
“Good Reason” means without your written consent, (i) a requirement that you report to any person other than Marc Rowan, Leon Black, and Joshua Harris; (ii) a material breach by the Company of this letter agreement, any award letter or any other existing or future agreement or award letter between you and the Company or any of its Affiliates; (iii) a requirement that your principal place of work is changed to a location outside of Manhattan, Queens or Long Island; or (iv) material adverse change in your title; provided, however, that the foregoing shall constitute Good Reason only if (a) you provide written notice of your employment termination within thirty (30) days after the date you become aware of the initial occurrence of the Good Reason condition, describing such condition in reasonable detail, and (b) you provide the Company with thirty (30) days to remedy the Good Reason condition following such notice and the Company fails to do so.  Any resignation for Good Reason must occur within one hundred twenty (120) days after you provide the notice to the Company described in clause (a) of the immediately preceding sentence unless an earlier date is required by the Company. As used in this definition, “material” means more than de minimis.
“Restricted Entity” means clients, customers, suppliers, partners, investors, prospective investors, financing sources or capital market intermediaries of the Company or its Affiliates with which you were materially concerned or had personal contact or about which you had Confidential Information at any time during the preceding 12 months (if your employment has not yet terminated) or the 12 months immediately preceding the Termination Date (if your employment has terminated).
“Section 409A” means Section 409A of the Code and the Treasury regulations and other interpretive guidance issued thereunder.

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“Termination Date” means the date on which your employment with the Company and its Affiliates terminates for whatever reason.
 

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