Document:

EX-10.1

 Exhibit 10.1 
 EMPLOYMENT SEPARATION AGREEMENT 
 This Agreement
(“Agreement”), executed on February 28, 2013, but retroactive to January 29, 2013 (the “Effective Date”), by and between StoneMor GP LLC, a Delaware limited liability company (the “Company”), and Paul Waimberg
(“Waimberg”). 
 W I T N E S S E T H: 

WHEREAS, Waimberg has been an employee of the Company since July 19, 1990, serving most recently in the position of Vice President -
Finance and Corporate Development and Treasurer; and
 WHEREAS, the Company and Waimberg have agreed that he will resign from
his current full-time position with the Company as of February 28, 2013 (the “Resignation Date”); and 
 WHEREAS,
the Company desires to assure the continuity of operations through the Resignation Date with respect to Waimberg’s areas of responsibility; 
 NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows: 
  

	 	1.	Duties Until Resignation. 

 1.01
Waimberg will remain employed by the Company until the Resignation Date, unless his employment is earlier terminated in accordance with paragraph 4.01 below. 
 1.02 During the remaining period of his employment, Waimberg shall work out at a mutually agreeable location, performing specific assignments as requested by the Company. He will perform these
assignments diligently, faithfully and to the best of his ability. He will report directly to and receive assignments from the Chief Financial Officer, maintaining all of his contact with the Company through the Chief Financial Officer or his
designees except for contacts with other personnel as are necessary in the performance of his duties. During this period, Waimberg will inform the Company of all projects, processes, agreements and assignments in which he has been or continues to be
involved, so as to assure business continuity. 
 1.03 During this period, Waimberg will be given time and opportunity, consistent with
his work assignments, to plan for his activities following the Resignation Date. 
  

	 	2.	Resignation 

 2.01 Upon the
Resignation Date, Waimberg shall be deemed to have submitted his resignation as Vice President - Finance and Corporate Development and Treasurer of the Company and StoneMor Partners L.P., and shall submit his resignation from similar executive
positions of any of the Company’s subsidiaries and affiliated entities, as well as any and all other executive or other positions he may then hold in any such subsidiaries and affiliates, including, but not limited to, any positions he might
hold as director, trustee, manager or governor of any of the Company’s subsidiaries or affiliates. 

  
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	 	3.	Employee Compensation  

 3.01
Waimberg shall continue to receive his base salary and benefits during the remaining period of his employment, except that effective January 1, 2013 Waimberg shall not be entitled to vacation and sick leave generally made available to
executive personnel of the Company. 
 3.02 Waimberg shall be eligible for a 2012 bonus payment on the same terms as all other corporate
executives on the same bonus program. 
 3.03 Waimberg acknowledges that he has received a cash payout of his four weeks’ accrued
and unused vacation for 2012, and that as of the Resignation Date he will not be owed anything further for accrued but unused vacation pay or sick leave. 
  

	 	4.	Termination of Employment 

  

	4.01	Waimberg’s employment hereunder shall terminate: 

 a. upon his death; 
 b. upon his Disability, which for the purposes
of this Agreement shall mean his inability because of physical or mental illness or incapacity, whether partial or total, with or without reasonable accommodation, to perform his duties under this Agreement, for a continuous period of at least seven
(7) calendar days; 
 c. For Cause at the option of the Company, exercisable by or upon the authority of the
Company’s Board and effective immediately upon the giving by the Company to Waimberg of written notice of such exercise, which, for purposes of this Agreement, shall mean conduct occurring after the Effective Date that constitutes fraud,
willful misconduct or gross negligence, violation of securities laws, or failure to perform mutually agreed-upon duties after five days’ written notice, or that, in the reasonable discretion of the Board, materially adversely affects the
reputation or business activities of the Company or any of its subsidiaries or affiliates; or 
 d. at the option of
either party, without cause, upon giving written notice thereof; 
 e. on the Resignation Date; and 

f. notwithstanding anything in this Agreement to the contrary, to the extent necessary to avoid adverse tax consequences under
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code), Waimberg’s employment shall not be considered to have terminated earlier than the date on which Waimberg has a ‘separation from service’ within the
meaning of Section 409A. 

  
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	4.02	The obligations of the Company upon termination of employment are as follows: 

a. Death. If Waimberg’s employment is terminated as a result of his death, his estate and/or beneficiaries, as the
case may be, shall be entitled to the following: 
 i. Base Salary earned but not paid prior to the
date of his death; 
 ii. the Severance Package described in paragraph 5.01, below, payable to his
estate and modified so that the Severance Period shall commence on the date of death and end 26 weeks thereafter; and 
 iii. such additional benefits as may be provided by the terms of the then existing plans, programs and/or arrangements of the Company in which Waimberg was a participant at the time of
death. 
 b. Disability. If Waimberg’s employment is terminated due to Disability, Waimberg shall be entitled
to the following: 
 i. Base Salary earned but not paid prior to the date of Disability;

 ii. the Severance Package described in paragraph 5.01, below, modified so that the Severance
Period shall commence on the date of termination of employment and end 26 weeks thereafter; and 

iii. such additional benefits as may be provided by the terms of the then existing plans, programs and/or
arrangements of the Company (other than any severance payments payable under the terms of any benefit plan) for disabled employees. 
 c. Cause. If the Company terminates Waimberg’s employment for Cause, Waimberg shall be entitled to the following: 

i. Base Salary earned but not paid prior to the date of the termination of his employment; and 

ii. such additional benefits as may be provided by the terms of the then existing plans, programs and/or
arrangements of the Company for terminated employees. 
 d. Without Cause by Waimberg. If Waimberg’s
employment is terminated by Waimberg without Cause, Waimberg shall be entitled to the following: 
 i.
Base Salary earned but not paid prior to the date of the termination of his employment; 
 ii. the
Severance Package described in paragraph 5.01, below, modified so that the Severance Period shall commence on the date of termination of employment and end 26 weeks thereafter. 

  
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 e. Without Cause by the Company. If Waimberg’s employment is terminated
by the Company without Cause, Waimberg shall be entitled to the following: 
 i. Base Salary earned but
not paid prior to the date of the termination of his employment, together with Base Salary for the balance of the period until the Resignation Date, payable in accordance with the regular payroll practices of the Company in equal installments over
the balance of such employment period; 
 ii. The Severance Package described in paragraph 5.01, below.

 f. Resignation. If Waimberg remains employed until the Resignation Date, Waimberg shall be entitled to
the following: 
 i. Base Salary earned but not paid prior to the Resignation Date; and 

ii. The Severance Package described in paragraph 5.01, below. 

4.03 Any payment under Paragraph 4.02 hereof shall be in lieu of any other severance, bonus or other payments (other than earned or vested
benefits) to which Waimberg might then be entitled pursuant to any other agreement, benefit plan or program of the Company or any statutory, common law or other claim, except that he shall remain eligible for the payment of a bonus for 2012 on the
same terms as all other corporate executives on the same bonus program, as set forth in Paragraph 3.02, above. 
  

	 	5.	Severance Package and Duties During Severance Period 

 5.01 Provided that Waimberg executes this Agreement and the release of all claims which is attached hereto as Appendix A, and re-affirms that release following termination of his employment with
the Company, and does not revoke his acceptance in accordance with paragraph 10.03 below, Waimberg shall receive a Severance Package consisting of: 
  

	 	5.01.1	Twenty-six (26) weeks’ base salary, less normal withholdings and deductions, payable over the period March 1, 2013 to August 30, 2013 (the
“Severance Period”) on the Company’s normal payroll schedule; and 

  

	 	5.01.2	If Waimberg elects COBRA continuation coverage, a contribution to Waimberg’s COBRA premium for the months of March through August, 2013, inclusive, on the
same basis as the Company currently contributes to Waimberg’s employee health insurance premium. Waimberg’s contribution to the COBRA premium will be the same as his current contribution to the health insurance premium unless the Company
changes the contribution structure for all executive level employees, and will be deducted from his severance payments. 

  

	 	5.01.3	Waimberg will continue to vest in his UARs during the period from March 1 to August 30, 2013. 

  
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 5.02 During the Severance Period, Waimberg will remain available on an as-needed basis without
additional compensation to provide reasonable assistance concerning questions that might arise relating to the work he performed for the Company. 
  

	 	6.	Continued Obligation of Confidentiality 

 6.01 While employed by the Company and thereafter without limit as to time, Waimberg will not (other than in the regular course and in furtherance of the Company’s business) divulge, furnish
or make available to any person any knowledge or information with respect to the business or affairs of the Company which is confidential, including, without limitation, “know-how,” trade secrets, customer lists, pricing policies,
operational methods, marketing plans or strategies, product development techniques or plans, business acquisition or disposition plans, new personnel employment plans, methods, technical processes, designs and design projects, inventions and
research projects and financial budgets and forecasts of the Company except (1) information which at the time is available to others in the business or generally known to the public other than as a result of disclosure by the Company not
permitted hereunder, and (2) when required to do so by a court of competent jurisdiction, by any governmental agency or by any administrative body or legislative body (including a committee thereof) with purported or apparent jurisdiction to
order Waimberg to divulge, disclose or make accessible such information. All memoranda, notes, lists, records, electronically stored data, recordings or videotapes and other documents (and all copies thereof) made or compiled by Waimberg or made
available to Waimberg (whether during his employment by the Company or by any predecessor thereof) concerning the business of the Company or any predecessor thereof shall be the property of the Company and shall be delivered to the Company promptly
upon the termination of employment. 
 6.02 Waimberg acknowledges that all developments, including, without limitation, inventions,
patentable or otherwise, trade secrets, discoveries, improvements, ideas and writings that alone or jointly with others Waimberg may conceive, make, develop or acquire during the period of his employment by the Company and any predecessor thereof
(collectively, the “Developments”), are and shall remain the sole and exclusive property of the Company and Waimberg hereby assigns to the Company all of his right, title and interest in all such Developments. Waimberg shall promptly and
fully disclose all future Developments to the Company’s Board, and, at any time upon request and at the expense of the Company, shall execute, acknowledge and deliver to the Company all instruments that the Company shall prepare, give evidence,
and take all other actions that are necessary or desirable in the reasonable opinion of the Company’s counsel, to enable the Company to file and prosecute applications for and to acquire, maintain and enforce all letters patent, trademark
registrations or copyrights covering the Developments in all countries in which the same are deemed necessary. 

  
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 6.03 Waimberg acknowledges that irreparable injury would be sustained by the Company in the event of
his breach of any of the covenants contained in this Paragraph 6, which injury could not be remedied adequately by the recovery of damages in an action at law. Accordingly, Waimberg agrees that, upon a breach or threatened breach by him of any of
such covenants, the Company shall be entitled, in addition to and not in lieu of any and all other remedies, to an injunction to be issued by any court of competent jurisdiction restraining the commission or continuance of any such breach or
threatened breach upon minimal bond, with or without surety, and that such an injunction will not work an undue hardship on him. Further, any proven breach by Waimberg shall result in the forfeiture of any remaining severance payments or benefits
due to Waimberg hereunder. 
 6.04 Except as legally required, the Company and Waimberg shall not discuss or disclose to any third party
(a) the terms of this Agreement or (b) the circumstances leading to the execution of this Agreement. Notwithstanding the foregoing, the parties may state that they have parted ways amicably. 

6.05 The provisions of this Paragraph 6 shall survive the termination of this Agreement, without regard to the reasons therefore. 

 

	 	7.	Reimbursement of Business Expenses 

 Upon termination of employment, Waimberg shall be entitled to reimbursement of business expenses in accordance with the Company’s policy. 

 

	 	8.	Non-disparagement 

Waimberg shall not make or cause to be made, whether orally or in writing, any statement which disparages the Company or its officers or
directors in its/his/her business, personal or professional dealings. The Company, which for purposes of this paragraph includes all officers at the level of Vice President and above, shall not make or cause to be made, whether orally or in writing,
any statement which disparages Waimberg in his business, personal or professional dealings. 
  

	 	9.	Requests for References 

 In response to any requests for references from prospective employers, the Company will follow its established practice of directing such requests to Human Resources, which will verify dates of
employment, positions held and, upon request, last annual salary, and will tell the inquiring party that it is Company policy to provide only such information. 
  

	 	10.	Miscellaneous 

 10.01 This
Agreement shall be construed and enforced in accordance with the laws of, the State of Delaware without reference to principles of conflict of laws. The parties consent to the jurisdiction and venue of the state courts in Bucks County, Pennsylvania
and of the United States District Court for the Eastern District of Pennsylvania, for any action to enforce the terms of this Agreement. 

  
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 10.02 This Agreement shall incorporate the complete understanding and agreement between the parties
with respect to the subject matter hereof and supersede any and all other prior or contemporaneous agreements, written or oral, between Waimberg and the Company or any predecessor thereof with respect to such subject matter. No provision hereof may
be modified or waived except by a written instrument duly executed by Waimberg and the Company with the express approval of the Company’s Board or the Company’s Compensation Committee. 

10.03 Waimberg acknowledges that before entering into this Agreement he has received a reasonable period of time, not less than 21 days, to
consider this Agreement and has had sufficient time and an opportunity to consult with any attorney or other advisor of his choice in connection with this Agreement and all matters contained herein, and that he has been advised to do so if he so
chooses. Waimberg further acknowledges that this Agreement and all terms hereof are fair, reasonable and are not the result of any fraud, duress, coercion, pressure or undue influence exercised by the Company, that he has approved and entered into
this Agreement and all of the terms hereof on his own free will, and that no promises or representations have been made to him by any person to induce him to enter into this Agreement other than the express terms set forth herein. Waimberg
understands that he has seven (7) calendar days from the date he signs this Agreement and Release, and from the date he re-affirms the Release following termination of employment, to revoke his acceptance of the Agreement, by giving written
notice in accordance with paragraph 8.06 below. 
 10.04 The Company shall be entitled to deduct and withhold from all compensation
payable to Waimberg pursuant to this Agreement all amounts required to be deducted and withheld therefrom pursuant to any present or future law, regulation or ordinance of the United States of America or any state or local jurisdiction therein or
any foreign taxing jurisdiction. 
 10.05 Paragraph headings are included in this Agreement for convenience of reference only and shall
not affect the interpretation of the text hereof. 
 10.06 Any and all notices, demands or other communications to be given or made
hereunder shall be in writing and shall be deemed to have been fully given or made when personally delivered, or on the third business day after mailing from within the continental United States by registered mail, postage prepaid, addressed as
follows: 
 If to the Company: 
 311
Veterans Highway, Suite B 
 Levittown, PA 19056 
 Attention: Lawrence Miller, President & CEO 

  
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 If to Waimberg: 
 812 Lombard Street 
 # 15 
 Philadelphia, PA 19147
 with a copy to his attorney by e-mail and U.S. mail, first class, postage
prepaid: 
 Peter J. Weidman 
 Weidman
Law, LLC 
 600 West Germantown Pike 

Suite 400 
 Plymouth Meeting, PA 19462

 e-mail: pweidman@weidmanlaw.com 
 Either party may change the address to which any notices to it shall be sent by giving to the other party written notice of such change in conformity with the foregoing. 

10.07 This Agreement may be executed in two or more counterparts, each of which shall constitute an original but all of which together shall
constitute one and the same instrument. 
 10.08 This Agreement may be assigned by the Company to, and shall inure to the benefit of, any
successor to substantially all the assets and business of the Company as a going concern, whether by merger, consolidation or purchase of substantially all of the assets of the Company or otherwise, provided that such successor shall assume the
Company’s obligations under this Agreement. Because this Agreement involves the performance of personal services by Waimberg, it may not be assigned by Waimberg. This Agreement shall inure to the benefit of and be enforceable by Waimberg’s
personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.
 IN WITNESS WHEREOF, the
Company and Waimberg have executed this Agreement as of the Effective Date. 
  

			
	STONEMOR GP LLC
		
	By:	 	 /s/ Lawrence Miller

	Name:	 	Lawrence Miller
	Title:	 	President and Chief Executive Officer

  

	
	 /s/ Paul Waimberg

	PAUL WAIMBERG

  
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 APPENDIX A 
 GENERAL RELEASE 
 In consideration of the Employment Separation
Agreement I have entered into with StoneMor GP LLC, a Delaware limited liability company (the “Company”), with an effective date of January 29, 2013, I, PAUL WAIMBERG, hereby release the Company and all of its past, present, and
future divisions, subsidiaries, parents, affiliates, joint ventures and other related entities, and all of their respective past, present, and future directors, officers, agents, employees, benefit plans, plan administrators and other plan
fiduciaries, successors and assigns (collectively, the “Released Parties”), from any and all claims occurring prior to my execution or to my re-affirmation of this General Release, as the case may be, and arising out of my employment with
the Company or my separation from that employment. This General Release is to be broadly construed to encompass all claims of any kind or character whatsoever, whether known or unknown, relating to my employment with the Company or my separation
from that employment based upon any matter occurring prior to my execution of this General Release, and prior to my re-affirmation of this General Release, as the case may be, including, but without limiting the generality of the foregoing, any and
all claims under the Age Discrimination in Employment Act, the Older Workers Benefits Protection Act, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act, the Rehabilitation Act of 1973,
Executive Order 11246 and 11375, the Employee Retirement Income Security Act (other than claims relating to vested benefits), the Worker Adjustment and Retraining Notification Act, the Family and Medical Leave Act, the Fair Labor Standards Act, the
Pennsylvania Human Relations Act, and any other federal, state or local constitution, statute, regulation, or ordinance, and any and all common law claims including, but not limited to, claims for wrongful or retaliatory discharge, whistle-blowing,
intentional infliction of emotional distress, negligence, defamation, invasion of privacy, salary, wages, bonuses, severance pay and benefits not specifically recited in the Employment Separation Agreement, and breach of contract. The claims I am
releasing also include all claims for retaliation under any of the laws described above, and any claims for attorney’s fees arising out of any of the above. This release applies to all claims whether or not I am now or ever was aware that they
existed, and also to the continuing or future consequences of those claims. 
 Excluded from the scope of this General Release
are: (1) any claims for defense or indemnification under any insurance policies, Company by-laws or applicable law relating to my employment; (2) any rights to workers’ compensation benefits or unemployment compensation benefits;
(3) claims that under applicable law cannot be released; (4) claims to enforce the Employment Separation Agreement; and (5) vested rights or interests under any retirement, UAR, equity or other benefit plans in which I participate

 I understand that nothing in this General Release is intended to and does not limit my right to file a charge or participate
in an investigative proceeding of the EEOC or another governmental agency. However, I understand that any claims by me for personal relief such as reinstatement or monetary damages or attorney’s fees are barred by this General Release, and that
even if I file a charge or someone else files a charge from which I could potentially benefit, I personally cannot benefit monetarily or in any other way from that claim. 

  
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 I further understand and acknowledge that: 

a. This General Release applies to, among other things, any and all claims I have against the Released Parties under the Federal Age
Discrimination in Employment Act (ADEA); 
 b. The General Release is given in exchange for good and valuable consideration to
which I would not otherwise have a right; 
 c. This General Release does not waive any rights or claims arising after both the
date I sign it and the date I re-affirm my signature; 
 d. I have been advised to and have been given ample opportunity to
consult with an attorney prior to signing this General Release; 
 e. I have been allowed at least twenty-one (21) days
from the date I received this General Release to sign it; 
 f. I may revoke this General Release by giving written notice to
the Company within seven (7) days after I sign it, or within seven (7) days after I re-affirm my signature; and 
 I
further acknowledge that I am signing this General Release knowingly and voluntarily, and without reliance upon any representations or promises of any kind other than those contained in the Employment Separation Agreement. 

 

							
	  
	 		 	  

	PAUL WAIMBERG	 		 	Date	 	
				
	SIGNATURE RE-AFFIRMED:	 		 		 	
			
	  
	 		 	  

	PAUL WAIMBERG	 		 	Date	 	

  
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 Exhibit 10AG 
 A.P. PHARMA, INC. 
 MANAGEMENT RETENTION AGREEMENT 

This Management Retention Agreement (the “Agreement”) is dated as of October 15, 2012, by and between Robert
Rosen (“Employee”) and A.P. Pharma, Inc., a Delaware corporation (the “Company”). This Agreement is intended to provide Employee with certain benefits described herein upon the occurrence of specific events.

 RECITALS 

A. The Company’s Board of Directors believes it is in the best interests of the Company and its shareholders to retain
Employee and provide incentives to Employee to continue in the service of the Company. 
 B. The Board of Directors
further believes that it is imperative to provide Employee with certain benefits upon Employee’s Involuntary Termination or a Change of Control, which benefits are intended to provide Employee with financial security and provide sufficient
income and encouragement to Employee to remain employed with the Company, notwithstanding the possibility of a Change of Control. 
 D. To accomplish the foregoing objectives, the Board of Directors has directed the Company, upon execution of this Agreement by Employee, to agree to the terms provided in this Agreement. 

It is therefore agreed as follows: 
 1. At-Will Employment. The Company and Employee acknowledge that Employee’s employment is and shall continue to be at-will, as defined under applicable law, and that Employee’s employment
with the Company may be terminated by either party at any time for any or no reason. If Employee’s employment terminates for any reason, Employee shall not be entitled to any payments, benefits, damages, award or compensation other than as
provided in this Agreement or otherwise agreed to by the Company. The terms of this Agreement shall terminate upon the earlier of: (i) the date on which Employee ceases to be employed as a corporate officer of the Company, other than as a
result of an Involuntary Termination; or (ii) the date that all obligations of the parties hereunder have been satisfied. A termination of the terms of this Agreement pursuant to the preceding sentence shall be effective for all purposes,
except that such termination shall not affect the payment or provision of compensation or benefits on account of a termination of employment occurring prior to the termination of the terms of this Agreement. The rights and duties created by this
Section 1 are contingent upon Employee’s release of claims against the Company (at the time of termination in a form reasonably satisfactory to the Company) and may not be modified in any way except by a written agreement executed by an
officer of the Company upon direction from the Board of Directors. 
 2. Benefits Upon Termination of
Employment. 
 (a) Severance Upon Involuntary Termination. In the event that Employee suffers an
Involuntary Termination at any time under circumstances other than as covered in paragraph 2(b) below, then in addition to all salary and bonuses accrued as of the date of Employee’s termination of employment, Employee will be entitled to
receive severance benefits as follows: (i) during the period commencing on the date of Employee’s termination and ending on the date six (6) months after the effective date of the termination (the “Severance Period”)
the Company shall pay to Employee an amount equal to the monthly base salary which Employee was receiving immediately prior to the Involuntary Termination in accordance with the Company’s standard payroll practices; (ii) one-half the
average bonus paid by the Company to Employee for services during each of the three 12- month periods (or such shorter period of time during which Employee was eligible for a bonus) prior to the Involuntary Termination date, which payments shall be
paid during the Severance Period in accordance with the Company’s standard payroll practices; (iii) accelerated vesting with respect to 1,250,000 shares of common stock under that certain stock option

 
grant to Employee as of the date of this Agreement, and (iv) reimbursement for or continuation of payment by the Company of its portion of the health insurance benefits provided to Employee
immediately prior to the Involuntary Termination pursuant to the terms of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) or other applicable law through the earlier of the end of the Severance
Period or the date upon which Employee is no longer eligible for such COBRA or other benefits under applicable law. Employee’s stock options, restricted stock and other equity awards shall otherwise be subject to the terms of the plan and
option or award agreement pursuant to which such options and other equity awards were granted. 
 (b) Severance Upon
a Change in Control. In the event that Employee suffers an Involuntary Termination within the twelve (12) month period following the effective date of a Change of Control, then in addition to all salary and bonuses accrued as of the
date of Employee’s termination of employment, Employee will be entitled to receive severance benefits as follows: (i) during the period commencing on the date of Employee’s termination and ending on the date twelve (12) months
after the effective date of the termination (the “Change of Control Severance Period”) the Company shall pay to Employee an amount equal to the greater of (A) the monthly base salary which Employee was receiving immediately
prior to the Involuntary Termination or (B) the monthly base salary which Employee was receiving immediately prior to the Change of Control, in each case, in accordance with the Company’s standard payroll practices; (ii) the average
bonus paid by the Company to Employee for services during each of the three 12-month periods (or such shorter period of time during which Employee was eligible for a bonus) prior to the Involuntary Termination date, which payments shall be paid
during the Change of Control Severance Period in accordance with the Company’s standard payroll practices; and (iii) reimbursement for or continuation of payment by the Company of its portion of the health insurance benefits provided to
Employee immediately prior to the Involuntary Termination pursuant to the terms of COBRA or other applicable law through the earlier of the end of the Change of Control Severance Period or the date upon which Employee is no longer eligible for such
COBRA or other benefits under applicable law. In addition, Employee’s stock options, restricted stock and other equity awards shall immediately vest, become exercisable and/or the restrictions thereon lapse with respect to one hundred percent
(100%) of the shares of Company common stock subject thereto. Employee’s stock options, restricted stock and other equity awards shall otherwise be subject to the terms of the plan and option or award agreement pursuant to which such
options and other equity awards were granted. 
 (c) Termination for Cause. Notwithstanding any other
provision of this Agreement, if Employee’s employment is terminated for Cause at any time, then Employee shall not be entitled to receive payment of any severance benefits or any continuation or acceleration of stock option vesting or
relinquishment of forfeiture and transfer restrictions on restricted stock awards. Employee will receive payment(s) for all salary and bonuses accrued as of the date of Employee’s termination of employment. 

(d) Voluntary Resignation. If Employee voluntarily resigns from the Company under circumstances which do not
constitute an Involuntary Termination, then Employee shall not be entitled to receive payment of any severance benefits, or option acceleration, or relinquishment of forfeiture and transfer restrictions. Employee will receive payment(s) for all
salary and bonuses accrued as of the date of Employee’s termination of employment. 
 3. Definition of Terms.
The following terms referred to in this Agreement shall have the following meanings: 
 (a) “Cause”
means any of the following: (i) Employee’s theft, dishonesty, willful misconduct, breach of fiduciary duty for personal profit, or falsification of any Company or Affiliate documents or records; (ii) Employee’s material
failure to abide by a Company’s or Affiliate’s code of conduct or other policies (including without limitation, policies relating to confidentiality and reasonable workplace conduct); (iii) Employee’s unauthorized use,
misappropriation, destruction or diversion of any tangible or intangible asset or corporate opportunity of the Company or an Affiliate (including, without limitation, Employee’s 

  
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improper use or disclosure of confidential or proprietary information); (iv) any intentional act by Employee which has a material detrimental effect on the Company or an Affiliate’s
reputation or business; (v) Employee’s repeated failure or inability to perform any reasonable assigned duties after written notice from the Company or an Affiliate (including, without limitation, habitual absence from work for reasons
other than illness), and a reasonable opportunity to cure, such failure or inability; (vi) any material breach by Employee of any employment or service agreement between Employee and the Company or an Affiliate, which breach is not cured
pursuant to the terms of such agreement; or (vii) Employee’s conviction (including any plea of guilty or nolo contendere) of any
criminal act involving fraud, dishonesty, misappropriation or moral turpitude, or which impairs Employee’s ability to perform his or her duties with the Company or an Affiliate. 

(b) “Change in Control” means the occurrence of any of the following: 

(i) an Ownership Change Event or a series of related Ownership Change Events (collectively, a
“Transaction”) in which the stockholders of the Company immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as their ownership of shares of the
Company’s voting stock immediately before the Transaction, direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the Company or such surviving
entity immediately outstanding after the Transaction, or, in the case of an Ownership Change Event the entity to which the assets of the Company were transferred (the “Transferee”), as the case may be; or 

(ii) the liquidation or dissolution of the Company. 

For purposes of the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest resulting from
ownership of the voting securities of one or more corporations or other business entities which own the Company or the Transferee, as the case may be, either directly or through one or more subsidiary corporations or other business entities. The
Board shall have the right to determine whether multiple sales or exchanges of the voting securities in the Company or multiple Ownership Change Events are related, and its determination shall be final, binding and conclusive. The Board may also,
but need not, specify that other transactions or events constitute a Change in Control. 
 (c) “Involuntary
Termination” shall include any termination by the Company other than for Cause and Employee’s voluntary termination within sixty days following the occurrence of any of the following events without Employee’s written consent:
(i) a material reduction or change in job duties, responsibilities and requirements inconsistent with Employee’s position with the Company and Employee’s prior duties, responsibilities and requirements or a material negative change in
Employee’s reporting relationship; (ii) a material reduction of Employee’s base compensation (other than in connection with a general decrease in base salaries for most officers of the Company or successor corporation); or
(iii) Employee’s refusal to relocate to a facility or location more than forty miles from the Company’s current location, provided that Employee will not resign due to such change, reduction or relocation without first providing the
Company with written notice of the event or events constituting the grounds for his voluntary resignation within thirty days of the initial existence of such grounds and a reasonable cure period of not less than thirty days following the date of
such notice. In addition to the foregoing, following any Change of Control, “Involuntary Termination” shall also include the following: (i) changes in the Company officer(s) to whom the Employee reports after the consummation of the
Change of Control, or (ii) a change in a majority of the Board of Directors of the Company within 12 months following the consummation of the Change of Control. 

(d) “Ownership Change Event” means the occurrence of any of the following with respect to the Company:
(i) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger or consolidation in which
the Company is a party; or (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company. 

  
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 4. Limitation and Conditions on Payments. 

(a) Parachute Payments. In the event that the severance and other benefits provided for in this Agreement to the
Employee: (i) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”); and (ii) but for this Section, would be subject to the excise
tax imposed by Section 4999 of the Code, then the Employee’s severance benefits under Sections 2(a) and 2(b) shall be payable either: 
 (i) in full; or 
 (ii) as to such lesser amount which would result in
no portion of such severance benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by
Section 4999, results in the receipt by the Employee on an after-tax basis, of the greatest amount of severance benefits under Section 2(a) and 2(b), notwithstanding that all or some portion of such severance benefits may be taxable under
Section 4999 of the Code. Any determination required under this Section 4 shall be made in writing by independent public accountants selected by the Company (the “Accountants”), whose determination shall be conclusive and
binding upon the Employee and the Company for all purposes. For purposes of making the calculations required by this Section 4, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of Section 280G and 4999 of the Code. The Company and the Employee shall furnish to the Accountants such information and documents as the Accountants may reasonably request in
order to make a determination under this Section. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 4. Any reduction in severance benefits required by this
Section 4 shall occur in a manner necessary to provide the service provider with the greatest economic benefit. If more than one manner of reduction of severance benefits necessary to arrive at the reduced amount yields the greatest economic
benefit to the service provider, the payments and benefits shall be reduced pro rata. 
 (b) Release Prior to
Receipt of Benefits. Prior to the receipt of any benefits under this Agreement, Employee shall execute and allow to become effective, a release of claims agreement in a form acceptable to the Company (the “Release”) not
later than fifty-two (52) days following Employee’s employment termination in the form provided by the Company. Such Release shall specifically relate to all of Employee’s rights and claims in existence at the time of such execution
and shall confirm Employee’s obligations under the Company’s standard form of proprietary information agreement. In no event will severance benefits be provided to Employee until the Release becomes effective. In the event severance
payments are delayed because of the effective date of the Release, the Company will pay Employee the severance payments, that Employee would otherwise have received under Section 2(a) on or prior to the effective date of the Release, on the
first regular payroll pay day following the effective date of the release, with the balance of the payments being paid as originally scheduled. 
 5. Section 409A. All severance payments to be made upon a termination of employment under this Agreement may be made only upon a “separation of service” within the meaning of
Section 409A of the Code and the Department of Treasury regulations and other guidance promulgated thereunder. Notwithstanding any provision to the contrary in this Agreement, if Employee is deemed by the Company at the time of Employee’s
separation from service to be a “specified employee” for purposes of Code Section 401A(a)(2)(B)(i), to the extent delayed commencement of any portion of the benefits to which Employee is entitled under this Agreement is required in
order to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i), such portion of Employee’s benefits shall not be provided to Employee prior to the earlier of (i) the expiration of the six-month period measured from the
date of Employee’s “separation of service” with the Company or (ii) the date of Employee’s death. Upon the first business day following the expiration of the applicable Code Section 409A(a)(2)(B)(i) period, all payments
deferred 

  
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pursuant to this Section 5 shall be paid in a lump sum to Employee, and any remaining payments due under the Agreement shall be paid as otherwise provided herein. For purposes of Code
Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), Employee’s right to receive installment payments under this Agreement shall be treated as a right to receive a series of
separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment. It is intended that none of the severance payments and benefits to be provided hereunder will be subject to
Section 409A of the Code and any ambiguities herein will be interpreted to be so exempt. Employee and the Company agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are
necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Employee under Section 409A of the Code. Notwithstanding anything to the contrary contained herein, to the extent
that any amendment to this Agreement with respect to the payment of any severance payments or benefits would constitute under Code Section 409A a delay in a payment or a change in the form of payment, then such amendment must be done in a
manner that complies with Code Section 409A(a)(4)(C). 
 6. Conflicts. Employee represents that
Employee’s performance of all the terms of this Agreement will not breach any other agreement to which Employee is a party. Employee has not, and will not during the term of this Agreement, enter into any oral or written agreement in conflict
with any of the provisions of this Agreement. Employee further represents that Employee is entering into or has entered into an employment relationship with the Company of Employee’s own free will and that Employee has not been solicited as an
employee in any way by the Company. 
 7. Successors. Any successor to the Company (whether direct or
indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the
obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. The terms of this Agreement and all of Employee’s rights hereunder and
thereunder shall inure to the benefit of, and be enforceable by, Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 

8. Notice. Notices and all other communications contemplated by this Agreement shall be in writing and shall be
deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. Mailed notices to Employee shall be addressed to Employee at the home address which Employee
most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary. 

9. Miscellaneous Provisions. 

(a) No Duty to Mitigate. Employee shall not be required to mitigate the amount of any payment contemplated by this
Agreement (whether by seeking new employment or in any other manner), nor shall any such payment be reduced by any earnings that Employee may receive from any other source. 

(b) Waiver. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or
discharge is agreed to in writing and signed by Employee and by an authorized officer of the Company (other than Employee). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other
party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
 (c) Whole Agreement. No agreements, representations or understandings (whether oral or written and whether express or implied) which are not expressly set forth in this Agreement have been made or
entered into by either party with respect to the subject matter hereof. This Agreement supersedes any agreement of the same title and concerning similar subject matter dated prior to the Effective Date, and by execution of this Agreement both
parties agree that any such predecessor agreement shall be deemed null and void. 

  
 - 5 - 

 (d) Choice of Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of California without reference to conflict of laws provisions. 
 (e) Severability. If any term or provision of this Agreement or the application thereof to any circumstance shall, in any jurisdiction and to any extent, be invalid or unenforceable, such term or
provision shall be ineffective as to such jurisdiction to the extent of such invalidity or unenforceability without invalidating or rendering unenforceable the remaining terms and provisions of this Agreement or the application of such terms and
provisions to circumstances other than those as to which it is held invalid or unenforceable, and a suitable and equitable term or provision shall be substituted therefore to carry out, insofar as may be valid and enforceable, the intent and purpose
of the invalid or unenforceable term or provision. 
 (f) Arbitration. Any dispute or controversy arising
under or in connection with this Agreement may be settled at the option of either party by binding arbitration in the County of San Mateo, California, in accordance with the rules of the American Arbitration Association then in effect. Judgment may
be entered on the arbitrator’s award in any court having jurisdiction. Punitive damages shall not be awarded. 
 (g)
Legal Fees and Expenses. The parties shall each bear their own expenses, legal fees and other fees incurred in connection with this Agreement. 
 (h) No Assignment of Benefits. The rights of any person to payments or benefits under this Agreement shall not be made subject to option or assignment, either by voluntary or involuntary assignment or
by operation of law, including (without limitation) bankruptcy, garnishment, attachment or other creditor’s process, and any action in violation of this Section 9(h) shall be void. 

(i) Employment Taxes. All payments made pursuant to this Agreement will be subject to withholding of applicable
income and employment taxes. 
 (j) Assignment by Company. The Company may assign its rights under this
Agreement to an affiliate, and an affiliate may assign its rights under this Agreement to another affiliate of the Company or to the Company. In the case of any such assignment, the term “Company” when used in a section of this Agreement
shall mean the corporation that actually employs the Employee. 
 (k) Counterparts. This Agreement may be
executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument. 

(l) Renewal. This Agreement shall remain in effect until December 31, 2013 and shall be
automatically renewed for additional one year periods unless not later than three months prior to December 31st of any year either party gives written notice to the other party of the intention to terminate the Agreement effective December 31st of that year, provided, that in no event shall this Agreement terminate during the twelve (12) month period commencing upon
a Change of Control. 
 [Signature page follows] 

The parties have executed this Agreement on the date first written above. 

 

			
	A.P. PHARMA, INC.
		
	By: 	 	 /s/ John B. Whelan

	Name: 	 	John B. Whelan
	Title: 	 	President & CEO
	
	EMPLOYEE
		
	Signature:	 	 /s/ Robert Rosen

		 	      Robert Rosen
	Address:	 	

  
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