Document:

EX-10.1

 Exhibit 10.1 

Originally Adopted September 23, 2009 

As Amended and Restated as of February 27, 2017 

APOLLO COMMERCIAL REAL ESTATE FINANCE, INC. 

2009 EQUITY INCENTIVE PLAN 
 1. PURPOSE.
The Plan is intended to provide incentives to directors, officers, advisors, consultants, key employees, and others expected to provide significant services to the Company and its Subsidiaries, including the personnel, employees, officers and
directors of the other Participating Companies, to encourage a proprietary interest in the Company, to encourage such key personnel to remain in the service of the Company and the other Participating Companies, to attract new personnel with
outstanding qualifications, and to afford additional incentive to others to increase their efforts in providing significant services to the Company and the other Participating Companies. In furtherance thereof, the Plan permits awards of equity-based incentives to key personnel, employees, officers and directors of, and certain other providers of services to, the Company or any other Participating Company. 

2. DEFINITIONS. As used in this Plan, the following definitions apply: 

“Act” shall mean the Securities Act of 1933, as amended. 

“Award Agreement” shall mean a written agreement evidencing a Grant pursuant to the Plan. 

“Board” shall mean the Board of Directors of the Company. 

“Cause” shall mean, unless otherwise provided in an applicable Award Agreement, a termination of employment or service, based upon a
finding by the Company, acting in good faith, after the occurrence of any of the following: (1) the Grantee is convicted or charged with a criminal offense; (2) the Grantee’s 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;
(3) the Grantee’s 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, the Manager or any of their
respective affiliates or the Grantee’s engagement in conduct which is injurious to the Company, the Manager or any of their respective affiliates, monetarily or otherwise; (4) the Grantee’s intentional failure to comply with any
reasonable directive by a supervisor in connection with the performance of any services on behalf of the Company, the Manager or any of their respective affiliates; (5) the Grantee’s intentional breach of any material provision of an Award
Agreement or any other agreements of the Company, the Manager or any of their respective affiliates; (6) the Grantee’s material violation of any written policies adopted by the Company, the Manager or any of their respective affiliates
governing the conduct of persons performing services on behalf of the Company, the Manager or any of their respective affiliates or the Grantee’s non-adherence to Apollo’s policies and procedures or other applicable Apollo compliance
manuals; (7) 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, the Manager or any of their respective 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 an investment made
by the Company, the Manager or any of their respective affiliates; (8) the failure by the Grantee to devote a sufficient portion of time to performing services as an agent of a Participating Company without the prior written consent of such
Participating Company, other than by reason of death or Disability; (9) the obtaining by the Grantee 

  
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of any material improper personal benefit as a result of a breach by the Grantee of any covenant or agreement (including, without limitation, a breach by the Grantee of the Company’s code of
ethics or a material breach by the Grantee of other written policies furnished to the Grantee relating to personal investment transactions or of any covenant, agreement, representation or warranty contained in any limited partnership agreement); or
(10) the Grantee’s suspension or other disciplinary action against the Grantee by an applicable regulatory authority; provided, however, that if a failure, breach, violation or action or omission described in any of clauses
(4) to (7) is capable of being cured, the Grantee has failed to do so after being given notice and a reasonable opportunity to cure. As used in this definition, “material” means “more than de minimis.” 

“Change in Control” means unless otherwise provided in an Award Agreement the happening of any of the following: 

(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 Company, any entity controlling, controlled by or under common control with the Company, any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Company or any such entity,
and, with respect to any particular Grantee, the Grantee and any “group” (as such term is used in Section 13(d)(3) of the Exchange Act) of which the Grantee 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 Company representing 50% or more of either (A) the combined voting power of the Company’s then outstanding securities or (B) the then outstanding
Shares (in either such case other than as a result of an acquisition of securities directly from the Company); or 
 (ii) any consolidation
or merger of the Company where the shareholders of the Company, 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 corporation issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, 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 Company, other than a sale or disposition by the Company of all or substantially all of the Company’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 Company immediately prior to such sale or (B) the approval by
shareholders of the Company of any plan or proposal for the liquidation or dissolution of the Company; or 
 (iv) the members of the Board
at the beginning of any consecutive 24-calendar-month period (the “Incumbent Directors”) cease for any reason other than due to death to constitute at least a majority of the members of the Board; provided that any Director whose election,
or nomination for election by the Company’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 Director. 
 Notwithstanding the foregoing, no event or condition shall constitute a Change in Control to the
extent that, if it were, a 20% tax would be imposed under Section 409A of the Code; provided that, in such a case, the event or condition shall continue to constitute a Change in Control to the maximum extent possible (e.g., if applicable, in
respect of vesting without an acceleration of distribution) without causing the imposition of such 20% tax. 

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

“Committee” shall mean the Compensation Committee of the Company or any subcommittee of the Board as appointed by the Board in
accordance with Section 4 of the Plan; provided, however, that the Committee shall at all times consist of two or more persons who, at the time of their appointment, each qualified as a
“Non-Employee Director” under Rule 16b-3(b)(3)(i) promulgated under the Exchange Act and, to the extent that relief from the limitation of
Section 162(m) of the Code is sought, as an “Outside Director” under Section 1.162-27(e)(3)(i) of the Treasury Regulations. 

“Common Stock” shall mean the Company’s common stock, par value $0.01 per share, either currently existing or authorized
hereafter. 
 “Company” shall mean Apollo Commercial Real Estate Finance, Inc., a Maryland corporation. 

“DER” shall mean a right awarded under Section 11 of the Plan to receive (or have credited) the equivalent value (in cash or
Shares) of dividends paid on Common Stock. 
 “Disability” shall mean, unless otherwise provided by the Committee in the
Grantee’s Award Agreement, the occurrence of an event which would entitle the Grantee to the payment of disability income under an approved long-term disability income plan or a long-term disability as determined by the Committee in its absolute discretion pursuant to any other standard as may be adopted by the Committee. Notwithstanding the foregoing, no circumstances or condition shall
constitute a Disability to the extent that, if it were, a 20% tax would be imposed under Section 409A of the Code; provided that, in such a case, the event or condition shall continue to constitute a Disability to the maximum extent possible
(e.g., if applicable, in respect of vesting without an acceleration of distribution) without causing the imposition of such 20% tax. 

“Eligible Persons” shall mean officers, directors, advisors, personnel and employees of the Participating Companies and other
persons expected to provide significant services (of a type expressly approved by the Committee as covered services for these purposes) to one or more of the Participating Companies. For purposes of the Plan and to the extent consistent with
applicable securities law, a provider of significant services (such as a consultant or advisor) to the Company or any other Participating Company shall be deemed to be an Eligible Person, but will be eligible to receive Grants (but in no event
Incentive Stock Options), only after a finding by the Committee in its discretion that the value of the services rendered or to be rendered to the Participating Company is at least equal to the value of the Grants being awarded. 

“Employee” shall mean an individual, including an officer of a Participating Company, who is employed (within the meaning of Code
Section 3401 and the regulations thereunder) by the Participating Company. 
 “Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended. 
 “Exercise Price” shall mean the price per Share of Common Stock, determined by the Board or
the Committee, at which an Option may be exercised. 
 “Fair Market Value” shall mean the value of one share of Common Stock,
determined as follows: 
  

	 	(i)	If the Shares are then listed on a national stock exchange, the closing sales price per Share on the exchange on the date in question (or, if no such price is available for such date, for the last preceding date on
which there was a sale of Shares on such exchange), as determined by the Committee. 

  
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	 	(ii)	If the Shares are not then listed on a national stock exchange but are then traded on an over-the-counter market, the average of the
closing bid and asked prices on the date in question for the Shares in such over-the-counter market (or, if no such average is available for such date, for the last
preceding date on which there was a sale of Shares in such market), as determined by the Committee. 

  

	 	(iii)	If neither (i) nor (ii) applies, such value as the Committee in its discretion may in good faith determine. Notwithstanding the foregoing, where the Shares are listed or traded, the Committee may make
discretionary determinations in good faith where the Shares have not been traded for 10 trading days. 

 Notwithstanding the foregoing, with
respect to any “stock right” within the meaning of Section 409A of the Code, Fair Market Value shall not be less than the “fair market value” of the shares of Common Stock determined in accordance with the final regulations
promulgated under Section 409A of the Code. 
 “Grant” shall mean the issuance of an Incentive Stock Option, Non-qualified Stock Option, Restricted Stock, Phantom Share, DER, or other equity-based grant as contemplated herein or any combination thereof as applicable to an Eligible
Person. The Committee will determine the eligibility of personnel, employees, officers, directors and others expected to provide significant services to the Participating Companies based on, among other factors, the position and responsibilities of
such individuals, the nature and value to the Participating Company of such individuals’ accomplishments and potential contribution to the success of the Participating Company whether directly or through its subsidiaries. 

“Grantee” shall mean an Eligible Person to whom Options, Restricted Stock, Phantom Shares, DERs, or other equity-based awards are
granted hereunder. 
 “Incentive Stock Option” shall mean an Option of the type described in Section 422(b) of the Code
issued to an Employee of (i) the Company, or (ii) a “subsidiary corporation” or a “parent corporation” as defined in Section 424(f) of the Code. 

“Manager” shall mean ACREFI Management, LLC, the Company’s manager. 

“Non-qualified Stock Option” shall mean an Option not described in Section 422(b) of
the Code. 
 “Option” shall mean any option, whether an Incentive Stock Option or a
Non-qualified Stock Option, to purchase, at a price and for the term fixed by the Committee in accordance with the Plan, and subject to such other limitations and restrictions in the Plan and the applicable
Award Agreement, a number of Shares determined by the Committee. 
 “Optionee” shall mean any Eligible Person to whom an Option is
granted, or the Successors of the Optionee, as the context so requires. 
 “Participating Companies” shall mean the Company, the
Subsidiaries, the Manager and, with the consent of the Committee, any of their respective affiliates and any joint venture affiliate of the Company. 

“Performance Goals” has the meaning set forth in Section 13. 

  
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 “Phantom Share” shall mean a right, pursuant to the Plan, of the Grantee to payment of
the Phantom Share Value. 
 “Phantom Share Value,” per Phantom Share, shall mean the Fair Market Value of a Share or, if so
provided by the Committee, such Fair Market Value to the extent in excess of a base value established by the Committee at the time of grant. 

“Plan” shall mean the Company’s 2009 Equity Incentive Plan, as set forth herein, and as the same may from time to time be
amended. 
 “Purchase Price” shall mean the Exercise Price times the number of Shares with respect to which an Option is
exercised. 
 “Restricted Stock” shall mean an award of Shares that are subject to restrictions hereunder. 

“Shares” shall mean shares of Common Stock of the Company, adjusted in accordance with Section 15 of the Plan (if applicable).

 “Subsidiary” shall mean any corporation, partnership, limited liability company or other entity at least 50% of the economic
interest in the equity of which is owned, directly or indirectly, by the Company or by another subsidiary. 
 “Successors of the
Optionee” shall mean the legal representative of the estate of a deceased Optionee or the person or persons who shall acquire the right to exercise an Option by bequest or inheritance or by reason of the death of the Optionee. 

“Termination of Service” shall mean the time when the employee-employer relationship or
directorship, or other service relationship (sufficient to constitute service as an Eligible Person), between the Grantee and the Participating Companies is terminated for any reason, with or without Cause, including, but not limited to, any
termination by resignation, discharge, death or retirement; provided, however, Termination of Service shall not include a termination where there is a simultaneous continuation of service of the Grantee (sufficient to constitute
service as an Eligible Person) for a Participating Company. The Committee, in its absolute discretion, shall determine the effects of all matters and questions relating to Termination of Service, including, but not limited to, the question of
whether any Termination of Service was for Cause and all questions of whether particular leaves of absence constitute Terminations of Service. For this purpose, the service relationship shall be treated as continuing intact while the Grantee is on
military leave, sick leave or other bona fide leave of absence (to be determined in the discretion of the Committee). 
 3. EFFECTIVE DATE. The
effective date of the Plan is September 23, 2009. The Plan shall not become effective unless and until it is approved by the requisite percentage of the holders of the Common Stock of the Company. The Plan shall terminate on, and no award shall
be granted hereunder on or after, the 10-year anniversary of the earlier of the approval of the Plan by (i) the Board or (ii) the shareholders of the Company; provided, however, that the Board may at any time prior to that date terminate
the Plan. 
 4. ADMINISTRATION. 
 (a)
Membership on Committee. The Plan shall be administered by the Committee appointed by the Board. If no Committee is designated by the Board to act for those purposes or the Board otherwise so elects, the full Board shall have the rights and
responsibilities of the Committee hereunder and under the Award Agreements. 

  
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 (b) Committee Meetings. The acts of a majority of the members present at any meeting of the
Committee at which a quorum is present, or acts approved in writing by a majority of the entire Committee, shall be the acts of the Committee for purposes of the Plan. If and to the extent applicable, no member of the Committee may act as to matters
under the Plan specifically relating to such member. 
 (c) Grant of Awards. 

 

	 	(i)	The Committee shall from time to time at its discretion select the Eligible Persons who are to be issued Grants and determine the number and type of Grants to be issued under any Award Agreement to an Eligible Person.
In particular, the Committee shall (A) determine the terms and conditions, not inconsistent with the terms of the Plan, of any Grants awarded hereunder (including, but not limited to the performance goals and periods applicable to the award of
Grants); (B) determine the time or times when and the manner and condition in which each Option shall be exercisable and the duration of the exercise period; and (C) determine or impose other conditions to the Grant or exercise of Options
under the Plan as it may deem appropriate. The Committee may establish such rules, regulations and procedures for the administration of the Plan as it deems appropriate, determine the extent, if any, to which Options, Phantom Shares, Shares (whether
or not Shares of Restricted Stock), DERs or other equity-based awards shall be forfeited (whether or not such forfeiture is expressly contemplated hereunder), and take any other actions and make any other determinations or decisions that it deems
necessary or appropriate in connection with the Plan or the administration or interpretation thereof. The Committee shall also cause each Incentive Stock Option to be designated as such, except that no Incentive Stock Options may be granted to an
Eligible Person who is not an Employee of the Company or a “subsidiary corporation” or a “parent corporation” as defined in Section 424(f) of the Code. The Grantee 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 or effect one or more of the obligations or restrictions imposed on the Grantee pursuant to the express provisions of the Plan and the
Award Agreement. DERs will be exercisable separately or together with Options, and paid in cash or other consideration at such times and in accordance with such rules, as the Committee shall determine in its discretion. Unless expressly provided
hereunder, the Committee, with respect to any Grant, may exercise its discretion hereunder at the time of the award or thereafter. The Committee shall have the right and responsibility to interpret the Plan and the interpretation and construction by
the Committee of any provision of the Plan or of any Grant thereunder, including, without limitation, in the event of a dispute, shall be final and binding on all Grantees and other persons to the maximum extent permitted by law. Without limiting
the generality of Section 24, no member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Grant hereunder. 

 

	 	(ii)	Notwithstanding clause (i) of this Section 4(c), unless otherwise required by law or exchange listing rules, any award under the Plan to an Eligible Person who is a member of the Committee shall be made by the
full Board, but for these purposes the directors of the Corporation who are on the Committee shall be required to be recused in respect of such awards and shall not be permitted to vote. 

  
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 (d) Awards. 
  

	 	(i)	Agreements. Grants to Eligible Persons shall be evidenced by written Award Agreements in such form as the Committee shall from time to time determine (which Award Agreements need not be in the same form as any other
Award Agreement evidencing Grants under the Plan and need not contain terms and conditions identical to those applicable to any other Grant under the Plan or to those applicable to any other Eligible Persons). Such Award Agreements shall comply with
and be subject to the terms and conditions set forth below. 

  

	 	(ii)	Number of Shares. Each Grant issued to an Eligible Person shall state the number of Shares to which it pertains or which otherwise underlie the Grant and shall provide for the adjustment thereof in accordance with the
provisions of Section 15 hereof. 

  

	 	(iii)	Other than (A) as a result of a Termination of Service or (B) in connection with a Change in Control or an event set forth in Section 16 hereof, each Grant issued to an Eligible Person shall include a
minimum vesting period of no less than one year from the date of Grant prior to which time no portion of the Grant shall be or become exercisable or free of restriction. 

 

	 	(iv)	Grants. Subject to the terms and conditions of the Plan and consistent with the Company’s intention for the Committee to exercise the greatest permissible flexibility under
Rule 16b-3 under the Exchange Act in awarding Grants, the Committee shall have the power: 

  

	 	(1)	to determine from time to time the Grants to be issued to Eligible Persons under the Plan and to prescribe the terms and provisions (which need not be identical) of Grants issued under the Plan to such persons;

  

	 	(2)	to construe and interpret the Plan and the Grants thereunder and to establish, amend and revoke the rules, regulations and procedures established for the administration of the Plan. In this connection, the Committee may
correct any defect or supply any omission, or reconcile any inconsistency in the Plan, in any Award Agreement, or in any related agreements, in the manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. All
decisions and determinations by the Committee in the exercise of this power shall be final and binding upon the Participating Companies and the Grantees; 

  

	 	(3)	to amend any outstanding Grant, subject to Section 17, and to accelerate or extend the vesting or exercisability of any Grant (in compliance with Section 409A of the Code, if applicable) and to waive
conditions or restrictions on any Grants, to the extent it shall deem appropriate; 

  

	 	(4)	to determine the circumstances, if any, upon which an award made under the Plan shall be subject to forfeiture in whole or in part as a result of a breach by the Grantee of a provision or covenant to which the Grantee
is subject; and 

  
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	 	(5)	generally to exercise such powers and to perform such acts as are deemed necessary or expedient to promote the best interests of the Company with respect to the Plan. 

5. PARTICIPATION. 
 (a) Eligibility. Only
Eligible Persons shall be eligible to receive Grants under the Plan. 
 (b) Limitation of Ownership. No Grants shall be issued under the
Plan to any person who after such Grant would beneficially own more than 9.8% of the outstanding shares of Common Stock of the Company, unless the foregoing restriction is expressly and specifically waived by action of the independent directors of
the Board. 
 (c) Stock Ownership. For purposes of Section 5(b) above, in determining stock ownership a Grantee shall be considered as
owning the stock owned, directly or indirectly, by or for his brothers, sisters, spouses, ancestors and lineal descendants. Stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be considered as being owned
proportionately by or for its stockholders, partners or beneficiaries. Stock with respect to which any person holds an Option shall be considered to be owned by such person. 

(d) Outstanding Stock. For purposes of Section 5(b) above, “outstanding shares” shall include all stock actually issued and
outstanding immediately after the issue of the Grant to the Grantee. With respect to the stock ownership of any Grantee, “outstanding shares” shall include shares authorized for issue under outstanding Options held by such Grantee, but not
options held by any other person. 
 6. STOCK. Subject to adjustments pursuant to Section 15, no Grant may cause the total number of shares of
Common Stock subject to all outstanding awards to exceed 7.5% of the issued and outstanding shares of Common Stock on a fully diluted basis (assuming, if applicable, the exercise of all outstanding Options and the conversion of all warrants and
convertible securities into shares of Common Stock). Subject to adjustments pursuant to Section 15, (i) the maximum number of Shares with respect to which any Options may be granted in any one year to any Grantee shall not exceed 262,500,
(ii) the maximum number of Shares that may underlie Grants, other than Grants of Options, in any one year to any Grantee shall not exceed 262,500, and (iii) the maximum number of Shares with respect to which Incentive Stock Options may be
granted over the life of the Plan shall not exceed 525,000. Notwithstanding the first sentence of this Section 6, (i) Shares that have been granted as Restricted Stock or that have been reserved for distribution in payment for Options or
Phantom Shares but are later forfeited or for any other reason are not payable under the Plan; and (ii) Shares as to which an Option is granted under the Plan that remains unexercised at the expiration, forfeiture or other termination of such
Option, may be the subject of the issue of further Grants. Shares of Common Stock issued hereunder may consist, in whole or in part, of authorized and unissued shares, treasury shares or previously issued Shares under the Plan. The certificates for
Shares issued hereunder may include any legend which the Committee deems appropriate to reflect any restrictions on transfer hereunder or under the Award Agreement, or as the Committee may otherwise deem appropriate. Shares subject to DERs, other
than DERs based directly on the dividends payable with respect to Shares subject to Options or the dividends payable on a number of Shares corresponding to the number of Phantom Shares awarded, shall be subject to the limitation of this
Section 6. Notwithstanding the limitations above in this Section 6, except in the case of Grants intended to qualify for relief from the limitations of Section 162(m) of the Code, there shall be no limit on the number of Phantom
Shares or DERs to the extent they are paid out in cash that may be granted under the Plan. If any Phantom Shares or DERs are paid out in cash, the underlying Shares may again be made the subject of Grants under the Plan, notwithstanding the first
sentence of this Section 6. 

  
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 7. TERMS AND CONDITIONS OF OPTIONS. 

(a) Each Award Agreement with an Eligible Person shall state the Exercise Price. The Exercise Price for any Option shall not be less than the
Fair Market Value on the date of Grant. 
 (b) Medium and Time of Payment. Except as may otherwise be provided below, the Purchase Price for
each Option granted to an Eligible Person shall be payable in full in United States dollars upon the exercise of the Option. In the event the Company determines that it is required to withhold taxes as a result of the exercise of an Option, as a
condition to the exercise thereof, an Employee may be required to make arrangements satisfactory to the Company to enable it to satisfy such withholding requirements in accordance with Section 21. If the applicable Award Agreement so provides,
or the Committee otherwise so permits, the Purchase Price may be paid in one or a combination of the following, taking into account the desired accounting treatment and compliance with applicable law: 

 

	 	(i)	by a certified or bank cashier’s check; 

  

	 	(ii)	by the surrender of shares of Common Stock in good form for transfer, owned by the person exercising the Option and having a Fair Market Value on the date of exercise equal to the Purchase Price, or in any combination
of cash and shares of Common Stock, as long as the sum of the cash so paid and the Fair Market Value of the shares of Common Stock so surrendered equals the Purchase Price; 

 

	 	(iii)	by reduction of the Shares issuable upon exercise of the Option; 

  

	 	(iv)	by cancellation of indebtedness owed by the Company to the Grantee; 

  

	 	(v)	subject to Section 17(e), by broker-assisted cashless exercise using a broker reasonably acceptable to the Company, pursuant to which the Grantee delivers to the Company, on or prior to the exercise date, the
Grantee’s instruction directing and obligating the broker to (a) sell Shares (or a sufficient portion of the Shares) acquired upon exercise of the Option and (b) remit to the Company a sufficient portion of the sale proceeds to pay
the aggregate purchase price, no later than the third trading day after the exercise date; 

  

	 	(vi)	subject to Section 17(e), by a loan or extension of credit from the Company evidenced by a full recourse promissory note executed by the Grantee. The interest rate and other terms and conditions of such note shall
be determined by the Committee (in which case the Committee may require that the Grantee pledge his or her Shares to the Company for the purpose of securing the payment of such note, and in no event shall the stock certificate(s) representing such
Shares be released to the Grantee until such note shall have been paid in full); or 

  

	 	(vii)	by any combination of such methods of payment or any other method acceptable to the Committee in its discretion. 

Except in the case of Options exercised by certified or bank cashier’s check, the Committee may impose such limitations and prohibitions on the exercise
of Options as it deems appropriate, including, without limitation, any limitation or prohibition designed to avoid accounting consequences which may result 

  
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from the use of Common Stock as payment upon exercise of an Option. Any fractional shares of Common Stock resulting from a Grantee’s election that are accepted by the Company shall in the
discretion of the Committee be paid in cash. 
 (c) Term and Nontransferability of Grants and Options. 

 

	 	(i)	Each Option under this Section 7 shall state the time or times which all or part thereof becomes exercisable, subject to the restrictions set forth in clauses (ii) through (v) below. 

 

	 	(ii)	No Option shall be exercisable except by the Grantee or a transferee permitted hereunder. 

  

	 	(iii)	No Option shall be assignable or transferable, except by will or the laws of descent and distribution of the state wherein the Grantee is domiciled at the time of his death; provided, however, that the
Committee may (but need not) permit other transfers, where the Committee concludes that such transferability (i) does not result in accelerated taxation, (ii) does not cause any Option intended to be an Incentive Stock Option to fail to be
described in Section 422(b) of the Code and (iii) is otherwise appropriate and desirable. 

  

	 	(iv)	No Option shall be exercisable until such time as set forth in the applicable Award Agreement (but in no event after the expiration of such Grant). 

 

	 	(v)	No modification of an Option shall, without the consent of the Optionee or as required by applicable law or regulation or to meet the requirements of any accounting standard or to correct an administrative error,
materially impair the rights of an Optionee under any Option previously granted. 

 (d) Termination of Service, other than by
Death, Disability, or for Cause. Unless otherwise provided in the applicable Award Agreement, upon any Termination of Service for any reason other than his or her death or Disability, an Optionee shall have the right, subject to the restrictions of
Section 4(c) above, to exercise his or her Option at any time within 90 days after Termination of Service, but only to the extent that, at the date of Termination of Service, the Optionee’s right to exercise such Option had accrued
pursuant to the terms of the applicable Award Agreement and had not previously been exercised or forfeited; provided, however, that, unless otherwise provided in the applicable Award Agreement, if there occurs a Termination of Service
by a Participating Company for Cause, any Option not exercised in full prior to such termination shall be canceled. 
 (e) Death of
Optionee. Unless otherwise provided in the applicable Award Agreement, if the Optionee of an Option dies while an Eligible Person or within 90 days after any Termination of Service other than for Cause, and has not fully exercised the Option,
subject to the restrictions of Section 4(c) above, the Option may be exercised at any time within 12 months after the Optionee’s death (or 12 months after the Optionee’s Termination of Service, if sooner) by the Successor of the
Optionee, but only to the extent that, at the date of death, the Optionee’s right to exercise such Option had accrued pursuant to the terms of the applicable Award Agreement and had not previously been exercised or forfeited. 

(f) Disability of Optionee. Unless otherwise provided in the Award Agreement, upon any Termination of Service for reason of his or her
Disability, an Optionee shall have the right, subject to the restrictions of Section 4(c) above, to exercise the Option at any time within 12 months after Termination of Service, but only to the extent that, at the date of Termination of
Service, the Optionee’s right to exercise such Option had accrued pursuant to the terms of the applicable Award Agreement and had not previously been exercised or forfeited. 

  
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 (g) Rights as a Stockholder. An Optionee, a Successor of the Optionee, or the holder of a DER
shall have no rights as a stockholder with respect to any Shares covered by his or her Grant until, in the case of an Optionee, the date of the issuance of a stock certificate for such Shares. No adjustment shall be made for dividends (ordinary or
extraordinary, whether in cash, securities or other property), distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as provided in Section 15. 

(h) Modification, Extension and Renewal of Option. Within the limitations of the Plan, and only with respect to Options granted to Eligible
Persons, the Committee may modify, extend or renew outstanding Options or accept the cancellation of outstanding Options (to the extent not previously exercised) for the granting of new Options in substitution therefor (but not including repricings,
in the absence of stockholder approval). The Committee may modify, extend or renew any Option granted to any Eligible Person, taking into consideration Rule 16b-3 under the Exchange Act and
Section 409A of the Code. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, alter or impair any rights or obligations under any Option previously granted. 

(i) Stock Appreciation Rights. The Committee, in its discretion, may (taking into account, without limitation, the application of
Section 409A of the Code, as the Committee may deem appropriate), also permit the Optionee to elect to exercise an Option by receiving Shares, cash or a combination thereof, in the discretion of the Committee and as may be set forth in the
applicable Award Agreement, with an aggregate Fair Market Value (or, to the extent of payment in cash, in an amount) equal to the excess of the Fair Market Value of the Shares with respect to which the Option is being exercised over the aggregate
Purchase Price, as determined as of the day the Option is exercised (an “SAR”). 
 (j) Deferral. The Committee may establish a
program (taking into account, without limitation, the application of Section 409A of the Code, as the Committee may deem appropriate) under which Optionees will have Phantom Shares subject to Section 10 credited upon their exercise of
Options, rather than receiving Shares at that time. 
 (k) Other Provisions. The Award Agreement authorized under the Plan may contain such
other provisions not inconsistent with the terms of the Plan (including, without limitation, restrictions upon the exercise of the Option) as the Committee shall deem advisable. 

8. SPECIAL RULES FOR INCENTIVE STOCK OPTIONS. 

(a) In the case of Incentive Stock Options granted hereunder, the aggregate Fair Market Value (determined as of the date of the Grant thereof)
of the Shares with respect to which Incentive Stock Options become exercisable by any Optionee for the first time during any calendar year (under the Plan and all other plans) required to be taken into account under Section 422(d) of the Code
shall not exceed $100,000. 
 (b) In the case of an individual described in Section 422(b)(6) of the Code (relating to certain 10%
owners), the Exercise Price with respect to an Incentive Stock Option shall not be less than 110% of the Fair Market Value of a Share on the day the Option is granted and the term of an Incentive Stock Option shall be no more than five years from
the date of grant. 

  
 11 

 (c) If Shares acquired upon exercise of an Incentive Stock Option are disposed of in a
disqualifying disposition within the meaning of Section 422 of the Code by an Optionee prior to the expiration of either two years from the date of grant of such Option or one year from the transfer of Shares to the Optionee pursuant to the
exercise of such Option, or in any other disqualifying disposition within the meaning of Section 422 of the Code, such Optionee shall notify the Company in writing as soon as practicable thereafter of the date and terms of such disposition and,
if the Company thereupon has a tax-withholding obligation, shall pay to the Company an amount equal to any withholding tax the Company is required to pay as a result of the disqualifying disposition. 

9. PROVISIONS APPLICABLE TO RESTRICTED STOCK. 

(a) Vesting Periods. In connection with the grant of Restricted Stock, whether or not Performance Goals apply thereto, the Committee shall
establish one or more vesting periods with respect to the shares of Restricted Stock granted, the length of which shall be determined in the discretion of the Committee and set forth in the applicable Award Agreement. Subject to the provisions of
this Section 9, the applicable Award Agreement and the other provisions of the Plan, restrictions on Restricted Stock shall lapse if the Grantee satisfies all applicable employment or other service requirements through the end of the applicable
vesting period. 
 (b) Grant of Restricted Stock. Subject to the other terms of the Plan, the Committee may, in its discretion as reflected
by the terms of the applicable Award Agreement: (i) authorize the granting of Restricted Stock to Eligible Persons; (ii) provide a specified purchase price for the Restricted Stock (whether or not the payment of a purchase price is
required by any state law applicable to the Company); (iii) determine the restrictions applicable to Restricted Stock and (iv) determine or impose other conditions to the grant of Restricted Stock under the Plan as it may deem appropriate.

 (c) Certificates. 
  

	 	(i)	Each Grantee of Restricted Stock may be issued a stock certificate in respect of Shares of Restricted Stock awarded under the Plan. Any such certificate shall be registered in the name of the Grantee. Without limiting
the generality of Section 6, in addition to any legend that might otherwise be required by the Board or the Company’s charter, bylaws or other applicable documents, the certificates for Shares of Restricted Stock issued hereunder may
include any legend which the Committee deems appropriate to reflect any restrictions on transfer hereunder or under the applicable Award Agreement, or as the Committee may otherwise deem appropriate, and, without limiting the generality of the
foregoing, shall bear a legend referring to the terms, conditions, and restrictions applicable to such Grant, substantially in the following form: 

THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING
FORFEITURE) OF THE APOLLO COMMERCIAL REAL ESTATE FINANCE, INC. 2009 EQUITY INCENTIVE PLAN, AND AN AWARD AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND APOLLO COMMERCIAL REAL ESTATE FINANCE, INC. COPIES OF SUCH PLAN AND AWARD AGREEMENT ARE
ON FILE IN THE OFFICES OF APOLLO COMMERCIAL REAL ESTATE FINANCE, INC. AT c/o APOLLO GLOBAL MANAGEMENT, LLC, 9 WEST 57TH ST., NEW YORK, NY 10019. 

  
 12 

	 	(ii)	The Committee may require that any stock certificates evidencing such Shares be held in custody by the Company until the restrictions hereunder shall have lapsed and that, as a condition of any grant of Restricted
Stock, the Grantee shall have delivered a stock power, endorsed in blank, relating to the stock covered by such Grant. If and when such restrictions so lapse, the stock certificates shall be delivered by the Company to the Grantee or his or her
designee as provided in Section 9(d). 

  

	 	(iii)	For purposes of clarity, nothing contained in the Plan shall preclude the use of non-certficated evidence of ownership that the Committee determines to be appropriate, including book entry. 

(d) Restrictions and Conditions. Unless otherwise provided by the Committee in an Award Agreement, the Shares of Restricted Stock awarded
pursuant to the Plan shall be subject to the following restrictions and conditions: 
  

	 	(i)	Subject to the provisions of the Plan and the applicable Award Agreement, during a period commencing with the date of such Grant and ending on the date the period of forfeiture with respect to such Shares lapses, the
Grantee shall not be permitted voluntarily or involuntarily to sell, transfer, pledge, anticipate, alienate, encumber or assign Shares of Restricted Stock awarded under the Plan (or have such Shares attached or garnished). Subject to the provisions
of the applicable Award Agreement, the period of forfeiture with respect to Shares granted hereunder shall lapse as provided in the applicable Award Agreement. Notwithstanding the foregoing, unless otherwise expressly provided by the Committee, the
period of forfeiture with respect to such Shares shall only lapse as to whole Shares. 

  

	 	(ii)	Except as provided in the foregoing clause (i), or in Section 15, the Grantee shall have, in respect of the Shares of Restricted Stock, all of the rights of a stockholder of the Company, including the right to
vote the Shares and receive dividends. Certificates for Shares (not subject to restrictions hereunder) shall be delivered to the Grantee or his or her designee (or where permitted, transferee) promptly after, and only after, the period of forfeiture
shall lapse without forfeiture in respect of such Shares of Restricted Stock. 

  

	 	(iii)	Termination of Service. Unless otherwise provided in the applicable Award Agreement, if the Grantee has a Termination of Service for any reason, then (A) all Restricted Stock still subject to restriction shall
thereupon, and with no further action, be forfeited by the Grantee, and (B) the Company shall pay to the Grantee as soon as practicable (and in no event more than 30 days) after such termination an amount equal to the lesser of (x) the
amount paid by the Grantee, if any, for such forfeited Restricted Stock as contemplated by Section 9(b), and (y) the Fair Market Value on the date of termination of the forfeited Restricted Stock. 

10. PROVISIONS APPLICABLE TO PHANTOM SHARES. 

(a) Grant of Phantom Shares. Subject to the other terms of the Plan, the Committee shall, in its discretion as reflected by the terms of the
applicable Award Agreement: (i) authorize the Granting of Phantom Shares to Eligible Persons and (ii) determine or impose other conditions to the grant of Phantom Shares under the Plan as it may deem appropriate. 

  
 13 

 (b) Term. The Committee may provide in an Award Agreement that any particular Phantom Share shall
expire at the end of a specified term. 
 (c) Vesting. 
  

	 	(i)	Subject to the provisions of the applicable Award Agreement and Section 10(c)(ii), Phantom Shares shall vest as provided in the applicable Award Agreement. 

 

	 	(ii)	Unless otherwise determined by the Committee in an applicable Award Agreement, in the event that a Grantee has a Termination of Service, any and all of the Grantee’s Phantom Shares which have not vested prior to or
as of such termination shall thereupon, and with no further action, be forfeited and cease to be outstanding, and the Grantee’s vested Phantom Shares shall be settled as set forth in Section 10(d). 

(d) Settlement of Phantom Shares. 
  

	 	(i)	Except as otherwise provided by the Committee, each vested and outstanding Phantom Share shall be settled by the transfer to the Grantee of one Share; provided, however, that, the Committee at the time of
grant (or, in the appropriate case, as determined by the Committee, thereafter) may provide that a Phantom Share may be settled (A) in cash at the applicable Phantom Share Value, (B) in cash or by transfer of Shares as elected by the
Grantee in accordance with procedures established by the Committee (if any) or (C) in cash or by transfer of Shares as elected by the Company. 

  

	 	(ii)	Each Phantom Share shall be settled with a single-sum payment by the Company; provided, however, that, with respect to Phantom Shares of a Grantee which have a
common Settlement Date (as defined below), the Committee may permit the Grantee to elect in accordance with procedures established by the Committee (taking into account, without limitation, Section 409A of the Code, as the Committee may deem
appropriate) to receive installment payments over a period not to exceed 10 years. 

  

	 	(iii)      (1)	Except as otherwise provided by the Committee, the settlement date with respect to a Grantee is the first day of the month to follow the Grantee’s Termination of Service (“Settlement Date”).

  

	 	(2)	Notwithstanding Section 10(d)(iii)(1), the Committee may provide that distributions of Phantom Shares can be elected at any time in those cases in which the Phantom Share Value is determined by reference to Fair
Market Value to the extent in excess of a base value, rather than by reference to unreduced Fair Market Value. 

  

	 	(3)	Notwithstanding the foregoing, the Settlement Date, if not earlier pursuant to this Section 10(d)(iii), is the date of the Grantee’s death. 

 

	 	(iv)	 Notwithstanding any other provision of the Plan (taking into account, without limitation, Section 409A of
the Code, as the Committee may deem appropriate), a Grantee may receive any amounts to be paid in installments as provided in 

  
 14 

	 	
Section 10(d)(ii) or deferred by the Grantee as provided in Section 10(d)(iii) in the event of an “Unforeseeable Emergency.” For these purposes, an “Unforeseeable
Emergency” shall have the meaning provided in Section 409A of the Code and the regulations thereunder, as determined by the Committee in its sole discretion, provided that such Unforeseeable Emergency must cause a severe financial hardship
to the Grantee resulting from (x) a sudden and unexpected illness or accident of the Grantee or “dependent,” as defined in Section 152(a) of the Code, of the Grantee, (y) loss of the Grantee’s property due to casualty,
or (z) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Grantee. The circumstances that will constitute an Unforeseeable Emergency will depend upon the facts of each case, but,
in any case, payment may not be made to the extent that such hardship is or may be relieved: 

  

	 	(1)	through reimbursement or compensation by insurance or otherwise; 

  

	 	(2)	by liquidation of the Grantee’s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship; or 

 

	 	(3)	by future cessation of the making of additional deferrals with respect to Phantom Shares. 

Without limitation, the need to send a Grantee’s child to college or the desire to purchase a home shall not constitute an Unforeseeable
Emergency. Distributions of amounts because of an Unforeseeable Emergency shall be permitted to the extent reasonably needed to satisfy the emergency need. 

(e) Other Phantom Share Provisions. 
  

	 	(i)	Except as permitted by the Committee, rights to payments with respect to Phantom Shares granted under the Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, attachment, garnishment, levy, execution, or other legal or equitable process, either voluntary or involuntary; and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, attach or garnish, or levy or execute on
any right to payments or other benefits payable hereunder, shall be void. 

  

	 	(ii)	A Grantee may designate in writing, on forms to be prescribed by the Committee, a beneficiary or beneficiaries to receive any payments payable after his or her death and may amend or revoke such designation at any time.
If no beneficiary designation is in effect at the time of a Grantee’s death, payments hereunder shall be made to the Grantee’s estate. If a Grantee with a vested Phantom Share dies, such Phantom Share shall be settled and the Phantom Share
Value in respect of such Phantom Shares paid, and any payments deferred pursuant to an election under Section 10(d)(iii) shall be accelerated and paid, as soon as practicable (but no later than 60 days) after the date of death to such
Grantee’s beneficiary or estate, as applicable. 

  

	 	(iii)	 The Committee may (taking into account, without limitation, Section 409A of the Code, as the Committee may
deem appropriate) establish a program under which distributions with respect to Phantom Shares may be deferred for periods in 

  
 15 

	 	
addition to those otherwise contemplated by the foregoing provisions of this Section 10. Such program may include, without limitation, provisions for the crediting of earnings and losses on
unpaid amounts and, if permitted by the Committee, provisions under which Grantees may select from among hypothetical investment alternatives for such deferred amounts in accordance with procedures established by the Committee. 

 

	 	(iv)	Notwithstanding any other provision of this Section 10, any fractional Phantom Share will be paid out in cash at the Phantom Share Value as of the Settlement Date. 

 

	 	(v)	No Phantom Share shall give any Grantee any rights with respect to Shares or any ownership interest in the Company. Except as may be provided in accordance with Section 11, no provision of the Plan shall be
interpreted to confer upon any Grantee of a Phantom Share any voting, dividend or derivative or other similar rights with respect to any Phantom Share. 

(f) Claims Procedures. 
  

	 	(i)	The Grantee, or his beneficiary hereunder or authorized representative, may file a claim for payments with respect to Phantom Shares under the Plan by written communication to the Committee or its designee. A claim is
not considered filed until such communication is actually received. Within 90 days (or, if special circumstances require an extension of time for processing, 180 days, in which case notice of such special circumstances should be provided within the
initial 90-day period) after the filing of the claim, the Committee will either: 

  

	 	(1)	approve the claim and take appropriate steps for satisfaction of the claim; or 

  

	 	(2)	if the claim is wholly or partially denied, advise the claimant of such denial by furnishing to him or her a written notice of such denial setting forth (A) the specific reason or reasons for the denial;
(B) specific reference to pertinent provisions of the Plan on which the denial is based and, if the denial is based in whole or in part on any rule of construction or interpretation adopted by the Committee, a reference to such rule, a copy of
which shall be provided to the claimant; (C) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of the reasons why such material or information is necessary; and (D) a
reference to this Section 10(f) as the provision setting forth the claims procedure under the Plan. 

  

	 	(ii)	The claimant may request a review of any denial of his or her claim by written application to the Committee within 60 days after receipt of the notice of denial of such claim. Within 60 days (or, if special
circumstances require an extension of time for processing, 120 days, in which case notice of such special circumstances should be provided within the initial 60-day period) after receipt of written application
for review, the Committee will provide the claimant with its decision in writing, including, if the claimant’s claim is not approved, specific reasons for the decision and specific references to the Plan provisions on which the decision is
based. 

  
 16 

 11. PROVISIONS APPLICABLE TO DIVIDEND EQUIVALENT RIGHTS. 

(a) Grant of DERs. Subject to the other terms of the Plan, the Committee shall, in its discretion as reflected by the terms of the Award
Agreements, authorize the granting of DERs to Eligible Persons based on the dividends declared on Common Stock, to be credited as of the dividend payment dates, during a specified period determined by the Committee, which may be, for example,
between the date a Grant is issued or vests, and the date such Grant is exercised, vests or expires. Such DERs shall be converted to cash or additional Shares by such formula and at such time and subject to such limitation as may be determined by
the Committee. With respect to DERs granted with respect to Options intended to be qualified performance-based compensation for purposes of Section 162(m) of the Code, such DERs shall be payable
regardless of whether such Option is exercised. If a DER is granted in respect of another Grant hereunder, then, unless otherwise stated in the Award Agreement, or, in the appropriate case, as determined by the Committee, in no event shall the DER
be in effect for a period beyond the time during which the applicable related portion of the underlying Grant has been exercised or otherwise settled, or has expired, been forfeited or otherwise lapsed, as applicable. 

(b) Certain Terms. 
  

	 	(i)	The term of a DER shall be set by the Committee in its discretion. 

  

	 	(ii)	Payment of the amount determined in accordance with Section 11(a) shall be in cash, in Common Stock or a combination of the both, as determined by the Committee at the time of grant. 

(c) Other Types of DERs. The Committee may establish a program under which DERs of a type whether or not described in the foregoing provisions
of this Section 11 may be granted to Eligible Persons. For example, without limitation, the Committee may grant a DER in respect of each Share subject to an Option or with respect to a Phantom Share, which right would consist of the right
(subject to Section 11(d)) to receive a cash payment in an amount equal to the dividend distributions paid on a Share from time to time. 

(d) Deferral. 
  

	 	(i)	The Committee may (taking into account, without limitation, Section 409A of the Code, as the Committee may deem appropriate) establish a program under which Grantees (i) will have Phantom Shares credited,
subject to the terms of Sections 10(d) and 10(e) as though directly applicable with respect thereto, upon the granting of DERs, or (ii) will have payments with respect to DERs deferred. 

 

	 	(ii)	The Committee may establish a program under which distributions with respect to DERs may be deferred. Such program may include, without limitation, provisions for the crediting of earnings and losses on unpaid amounts,
and, if permitted by the Committee, provisions under which Grantees may select from among hypothetical investment alternatives for such deferred amounts in accordance with procedures established by the Committee. 

12. OTHER EQUITY-BASED AWARDS. The Board shall have the right to grant other awards based upon the Common Stock
having such terms and conditions as the Board may determine, including, without limitation, the grant of Shares based upon certain conditions, the grant of securities convertible into Common Stock, and the grant of restricted stock units. 

  
 17 

 13. PERFORMANCE GOALS. The Committee, in its discretion, shall in the case of Grants (including, in
particular, Grants other than Options) intended to qualify for an exception from the limitation imposed by Section 162(m) of the Code (“Performance-Based Grants”) (i) establish one or more
performance goals (“Performance Goals”) as a precondition to the issuance or vesting of Grants, and (ii) provide, in connection with the establishment of the Performance Goals, for predetermined Grants to those Grantees (who continue
to meet all applicable eligibility requirements) with respect to whom the applicable Performance Goals are satisfied. The Performance Goals shall be based upon the criteria set forth in Exhibit A hereto which is hereby incorporated
herein by reference as though set forth in full. The Performance Goals shall be established in a timely fashion such that they are considered preestablished for purposes of the rules governing
performance-based compensation under Section 162(m) of the Code. Prior to the award of Restricted Stock intended to qualify for an exception from the limitation imposed by Section 162(m) of the Code,
the Committee shall have certified that any applicable Performance Goals, and other material terms of the Grant, have been satisfied. Performance Goals which do not satisfy the foregoing provisions of this Section 13 may be established by the
Committee with respect to Grants not intended to qualify for an exception from the limitations imposed by Section 162(m) of the Code. 
 14. TERM OF
PLAN. Grants may be granted pursuant to the Plan until the expiration of 10 years from the effective date of the Plan. 
 15. RECAPITALIZATION AND
CHANGES OF CONTROL. 
 (a) Subject to any required action by stockholders and to the specific provisions of Section 16, if
(i) the Company shall at any time be involved in a merger, consolidation, dissolution, liquidation, reorganization, exchange of shares, sale of all or substantially all of the assets or stock of the Company or a transaction similar thereto,
(ii) any stock dividend, stock split, reverse stock split, stock combination, reclassification, recapitalization or other similar change in the capital structure of the Company, or any distribution to holders of Common Stock other than 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 Grants, then: 

 

	 	(i)	the maximum aggregate number of Shares which may be made subject to Options and DERs under the Plan, the maximum aggregate number and kind of Shares of Restricted Stock that may be granted under the Plan, the maximum
aggregate number of Phantom Shares and other Grants which may be granted under the Plan shall be appropriately adjusted by the Committee in its discretion; and 

  

	 	(ii)	the Committee shall take any such action as in its discretion shall be necessary to maintain each Grantees’ rights hereunder (including under their applicable Award Agreements) so that they are, in their respective
Options, Phantom Shares and DERs (and, as appropriate, other Grants under Section 12), substantially proportionate to the rights existing in such Options, Phantom Shares and DERs (and other Grants under Section 12) prior to such event,
including, without limitation, adjustments in (A) the number of Options, Phantom Shares and DERs (and other Grants under Section 12) granted, (B) the number and kind of shares or other property to be distributed in respect of Options,
Phantom Shares and DERs (and other Grants under Section 12, as applicable, (C) the Exercise Price, Purchase Price and Phantom Share Value, and (D) performance-based criteria established in
connection with Grants (to the extent consistent with Section 162(m) of the Code, as applicable); provided that, in the discretion of the Committee, the foregoing clause (D) may also be applied in the case of any event relating to a
Subsidiary if the event would have been covered under this Section 15(a) had the event related to the Company. 

  
 18 

 To the extent that such action shall include an increase or decrease in the number of Shares (or units of other
property then available) subject to all outstanding Grants, the number of Shares (or units) available under Section 6 above shall be increased or decreased, as the case may be, proportionately. 

(b) Any Shares or other securities distributed to a Grantee with respect to Restricted Stock or otherwise issued in substitution of Restricted
Stock pursuant to this Section 15 shall be subject to the applicable restrictions and requirements imposed by Section 9, including depositing the certificates therefor with the Company together with a stock power and bearing a legend as
provided in Section 9(c)(i). 
 (c) If the Company shall be consolidated or merged with another corporation or other entity, each
Grantee who has received Restricted Stock that is then subject to restrictions imposed by Section 9(d) may be required to deposit with the successor corporation the certificates for the stock or securities or the other property that the Grantee
is entitled to receive by reason of ownership of Restricted Stock in a manner consistent with Section 9(c)(ii), and such stock, securities or other property shall become subject to the restrictions and requirements imposed by Section 9(d),
and the certificates therefor or other evidence thereof shall bear a legend similar in form and substance to the legend set forth in Section 9(c)(i). 

(d) The judgment of the Committee with respect to any matter referred to in this Section 15 shall be conclusive and binding upon each
Grantee without the need for any amendment to the Plan. 
 (e) Subject to any required action by stockholders, if the Company is the
surviving corporation in any merger or consolidation, the rights under any outstanding Grant shall pertain and apply to the securities to which a holder of the number of Shares subject to the Grant would have been entitled. Subject to the terms of
any applicable Award Agreement, in the event of a merger or consolidation in which the Company is not the surviving corporation, the date of exercisability of each outstanding Option and settling of each Phantom Share or, as applicable, other Grant
under Section 12, shall be accelerated to a date prior to such merger or consolidation, unless the agreement of merger or consolidation provides for the assumption of the Grant by the successor to the Company. 

(f) To the extent that the foregoing adjustment related to securities of the Company, such adjustments shall be made by the Committee, whose
determination shall be conclusive and binding on all persons. 
 (g) Except as expressly provided in this Section 15, a Grantee shall
have no rights by reason of subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class or by reason of any dissolution, liquidation,
merger or consolidation or spin-off of assets or stock of another corporation, and any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall
not affect, and no adjustment by reason thereof shall be made with respect to, the number of Shares subject to a Grant or the Exercise Price of Shares subject to an Option. 

(h) Grants made pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business assets. 

  
 19 

 (i) Upon the occurrence of a Change in Control: 

 

	 	(i)	The Committee as constituted immediately before the Change in Control may make such adjustments as it, in its discretion, determines are necessary or appropriate in light of the Change in Control (including, without
limitation, the substitution of stock other than stock of the Company as the stock optioned hereunder, and the acceleration of the exercisability or vesting of awards granted under the Plan, cancellation of any Options or stock appreciation rights
in return for payment equal to the Fair Market Value of Shares subject to an Option or stock appreciation right as of the date of the Change in Control less the exercise price applicable thereto (which amount may be zero) and settling of each vested
Phantom Share or, as applicable, other Grant under Section 12), if any, provided that the Committee determines that such adjustments do not have a substantial adverse economic impact on the Grantee as determined at the time of the
adjustments. 

  

	 	(ii)	Notwithstanding the provisions of Section 10, the Settlement Date for Phantom Shares shall be the date of such Change in Control and all amounts due with respect to Phantom Shares to a Grantee hereunder shall be
paid as soon as practicable (but in no event more than 30 days) after such Change in Control, unless such Grantee elects otherwise in accordance with procedures established by the Committee. 

16. EFFECT OF CERTAIN TRANSACTIONS. In the case of (i) the dissolution or liquidation of the Company, (ii) a merger, consolidation,
reorganization or other business combination in which the Company is acquired by another entity or in which the Company is not the surviving entity, or (iii) 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 Company, the Plan and the Grants issued hereunder shall terminate upon the effectiveness of any such transaction or event, unless
provision is made in connection with such transaction for the assumption of Grants theretofore granted, or the substitution for such Grants of new Grants, by the successor entity or parent thereof, with appropriate adjustment as to the number and
kind of shares and the per share exercise prices, as provided in Section 15. In the event of such termination, all outstanding Options and Grants shall be exercisable to the extent then vested (taking into account any accelerated vesting
provided by the Committee) for at least ten days prior to the date of such termination. 
 17. SECURITIES LAW REQUIREMENTS. 

(a) Legality of Issuance. The issuance of any Shares pursuant to Grants under the Plan and the issuance of any Grant shall be contingent upon
the following: 
  

	 	(i)	the obligation of the Company to sell Shares with respect to Grants issued under the Plan shall be subject to all applicable laws, rules and regulations, including all applicable federal and state securities laws, and
the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Committee; 

  

	 	(ii)	the Committee may make such changes to the Plan as may be necessary or appropriate to comply with the rules and regulations of any government authority or to obtain tax benefits applicable to stock options; and

  
 20 

	 	(iii)	each grant of Options, Restricted Stock, Phantom Shares (or issuance of Shares in respect thereof), DERs (or issuance of Shares in respect thereof), or other Grant under Section 12 (or issuance of Shares in respect
thereof), is subject to the requirement that, if at any time the Committee determines, in its discretion, that the listing, registration or qualification of Shares issuable pursuant to the Plan is required by any securities exchange or under any
state or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the issuance of Options, Shares of Restricted Stock, Phantom Shares, DERs, other Grants or other
Shares, no payment shall be made, or Phantom Shares or Shares issued or grant of Restricted Stock or other Grant made, in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any
conditions in a manner acceptable to the Committee. 

 (b) Restrictions on Transfer. Regardless of whether the offering and
sale of Shares under the Plan has been registered under the Act or has been registered or qualified under the securities laws of any state, the Company may impose restrictions on the sale, pledge or other transfer of such Shares (including the
placement of appropriate legends on stock certificates) if, in the judgment of the Company and its counsel, such restrictions are necessary or desirable in order to achieve compliance with the provisions of the Act, the securities laws of any state
or any other law. In the event that the sale of Shares under the Plan is not registered under the Act but an exemption is available which requires an investment representation or other representation, each Grantee shall be required to represent that
such Shares are being acquired for investment, and not with a view to the sale or distribution thereof, and to make such other representations as are deemed necessary or appropriate by the Company and its counsel. Any determination by the Company
and its counsel in connection with any of the matters set forth in this Section 17 shall be conclusive and binding on all persons. Without limiting the generality of Section 6, stock certificates evidencing Shares acquired under the Plan
pursuant to an unregistered transaction shall bear a restrictive legend, substantially in the following form, and such other restrictive legends as are required or deemed advisable under the provisions of any applicable law: 

“THE SALE OF THE SECURITIES REPRESENTED HEREBY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”). ANY
TRANSFER OF SUCH SECURITIES WILL BE INVALID UNLESS A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT AS TO SUCH TRANSFER OR IN THE OPINION OF COUNSEL FOR THE ISSUER SUCH REGISTRATION IS UNNECESSARY IN ORDER FOR SUCH TRANSFER TO COMPLY WITH THE
ACT.” 
 (c) Registration or Qualification of Securities. The Company may, but shall not be obligated to, register or qualify the
issuance of Grants and/or the sale of Shares under the Act or any other applicable law. The Company shall not be obligated to take any affirmative action in order to cause the issuance of Grants or the sale of Shares under the Plan to comply with
any law. 
 (d) Exchange of Certificates. If, in the opinion of the Company and its counsel, any legend placed on a stock certificate
representing Shares sold under the Plan is no longer required, the holder of such certificate shall, with the permission of the Committee, be entitled to exchange such certificate for a certificate representing the same number of Shares but lacking
such legend. 
 (e) Certain Loans. Notwithstanding any other provision of the Plan, the Company shall not be required to take or permit any
action under the Plan or any Award Agreement which, in the good-faith determination of the Company, would result in a material risk of a violation by the Company of Section 13(k) of the Exchange Act. 

  
 21 

 18. COMPLIANCE WITH SECTION 409A OF THE CODE. 

(a) Any Award Agreement issued under the Plan that is subject to Section 409A of the Code shall include such additional terms and
conditions as may be required to satisfy the requirements of Section 409A of the Code. 
 (b) With respect to any Grant issued under
the Plan that is subject to Section 409A of the Code, and with respect to which a payment or distribution is to be made upon a Termination of Service, if the Grantee is determined by the Company to be a “specified employee” within the
meaning of Section 409A(a)(2)(B)(i) of the Code and any of the Company’s stock is publicly traded on an established securities market or otherwise, such payment or distribution, to the extent it would constitute a payment of nonqualified
deferred compensation within the meaning of Section 409A of the Code that is ineligible for an exemption from treatment as such, may not be made before the date which is six months after the date of Termination of Service (to the extent
required under Section 409A of the Code). 
 (c) Notwithstanding any other provision of the Plan, the Board and the Committee shall
administer the Plan, and exercise authority and discretion under the Plan, to satisfy the requirements of Section 409A of the Code or any exemption thereto. Nothing contained herein is intended to provide assurances or an indemnity to any
grantee regarding his personal tax treatment. 
 19. AMENDMENT OF THE PLAN. 

(a) The Board may from time to time, with respect to any Shares at the time not subject to Grants, suspend or discontinue the Plan or revise
or amend it in any respect whatsoever, taking into account applicable laws, regulations, exchange and accounting rules. The Board may otherwise amend the Plan as it shall deem advisable, except that no amendment may materially impair the rights of a
Grantee under an award previously granted without the Grantee’s consent, unless effected to comply with applicable law or regulation or to meet the requirements of any accounting standard or to correct an administrative error. 

(b) Notwithstanding Section 19(a) above, or any other provision of the Plan, the repricing of an Option or SAR shall not be
permitted without stockholder approval. For this purpose, a “repricing” means any of the following (or any other action that has the same effect as any of the following): (1) changing the terms of an Option or SAR to lower its
exercise or base price (other than on account of capital adjustments resulting from share splits, etc., as described in Section 15(a) hereof), (2) any other action that is treated as a repricing under generally accepted accounting
principles, and (3) repurchasing for cash or canceling an Option or SAR in exchange for another Grant at a time when its exercise or base price is greater than the Fair Market Value of the underlying Shares, unless the cancellation and exchange
occurs in connection with a Change in Control or an event set forth in Section 16 hereof. 
 20. APPLICATION OF FUNDS. The proceeds received by
the Company from the sale of Common Stock pursuant to the exercise of an Option, the sale of Restricted Stock or in connection with other Grants under the Plan will be used for general corporate purposes. 

21. TAX WITHHOLDING. Each Grantee shall, no later than the date as of which the value of any Grant first becomes includable in the gross income of the
Grantee for federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Company regarding payment of any federal, state or local taxes of any kind that are required by law to be withheld with respect to such income. To

  
 22 

 
the extent permitted by the Committee from time to time, a Grantee may elect to have such tax withholding satisfied, in whole or in part, by (i) authorizing the Company to withhold a number
of Shares to be issued pursuant to a Grant equal to the Fair Market Value as of the date withholding is effected that would satisfy the withholding amount due, (ii) transferring to the Company Shares owned by the Grantee with a Fair Market
Value equal to the amount of the required withholding tax, or (iii) in the case of a Grantee who is an Employee of the Company at the time such withholding is effected, by withholding from the Grantee’s cash compensation. Notwithstanding
anything contained in the Plan to the contrary, the Grantee’s satisfaction of any tax-withholding requirements imposed by the Committee shall be a condition precedent to the Company’s obligation as
may otherwise by provided hereunder to provide Shares to the Grantee, and the failure of the Grantee to satisfy such requirements with respect to a Grant shall cause such Grant to be forfeited. 

22. NOTICES. All notices under the Plan shall be in writing, and if to the Company, shall be delivered to the Board or mailed to its principal office,
addressed to the attention of the Board; and if to the Grantee, shall be delivered personally or mailed to the Grantee at the address appearing in the records of the Participating Company. Such addresses may be changed at any time by written notice
to the other party given in accordance with this Section 22. 
 23. RIGHTS TO EMPLOYMENT OR OTHER SERVICE. Nothing in the Plan or in any Grant
issued pursuant to the Plan shall confer on any individual any right to continue in the employ or other service of the Participating Company (if applicable) or interfere in any way with the right of the Participating Company and its stockholders to
terminate the individual’s employment or other service at any time. 
 24. EXCULPATION AND INDEMNIFICATION. To the maximum extent permitted by
law, the Company shall indemnify and hold harmless the members of the Board and the members of the Committee, in each case as constituted from time to time, from and against any and all liabilities, costs and expenses incurred by such persons as a
result of any act or omission to act in connection with the performance of such person’s duties, responsibilities and obligations under the Plan, other than such liabilities, costs and expenses as may result from the gross negligence, bad
faith, willful misconduct or criminal acts of such persons. 
 25. NO FUND CREATED. Any and all payments hereunder to any Grantee under the Plan
shall be made from the general funds of the Company (or, if applicable, a Participating Company), no special or separate fund shall be established or other segregation of assets made to assure such payments, and the Phantom Shares (including for
purposes of this Section 25 any accounts established to facilitate the implementation of Section 10(d)(iii)) and any other similar devices issued hereunder to account for Plan obligations do not constitute Common Stock and shall not be
treated as (or as giving rise to) property or as a trust fund of any kind; provided, however, that the Company (or a Participating Company) may establish a mere bookkeeping reserve to meet its obligations hereunder or a trust or other
funding vehicle that would not cause the Plan to be deemed to be funded for tax purposes or for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended. The obligations of the Company (or, if applicable, a
Participating Company) under the Plan are unsecured and constitute a mere promise by the Company (or, if applicable, a Participating Company) to make benefit payments in the future and, to the extent that any person acquires a right to receive
payments under the Plan from the Company (or, if applicable, a Participating Company), such right shall be no greater than the right of a general unsecured creditor of the Company (or, if applicable, a Participating Company). Without limiting the
foregoing, Phantom Shares and any other similar devices issued hereunder to account for Plan obligations are solely a device for the measurement and determination of the amounts to be paid to a Grantee under the Plan, and each Grantee’s right
in the Phantom Shares and any such other devices is limited to the right to receive payment, if any, as may herein be provided. 

  
 23 

 26. NO FIDUCIARY RELATIONSHIP. Nothing contained in the Plan (including without limitation
Section 10(e)(iii)), and no action taken pursuant to the provisions of the Plan, shall create or shall be construed to create a trust of any kind, or a fiduciary relationship between the Company, the Participating Companies, or their officers
or the Committee, on the one hand, and the Grantee, the Company, the Participating Companies or any other person or entity, on the other. 
 27.
CAPTIONS. The use of captions in the Plan is for convenience. The captions are not intended to provide substantive rights. 
 28. GOVERNING
LAW. THE PLAN SHALL BE GOVERNED BY THE LAWS OF DELAWARE, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. 
 29. REGIONAL VARIATION. The
Committee reserves the right to authorize the establishment of, and to grant Grants pursuant to, annexes, sub-plans or other supplementary documentation as the Committee deems appropriate in light of local law, rules and customs. 

  
 24 

 EXHIBIT A 

PERFORMANCE CRITERIA 
 Performance-Based Grants intended to qualify as “performance based” compensation under Section 162(m) of the Code, may be payable upon the attainment of objective performance goals that are
established by the Committee and relate to one or more Performance Criteria, in each case on specified date or over any period, up to 10 years, as determined by the Committee. Performance Criteria may be based on the achievement of the specified
levels of performance under one or more of the measures set out below relative to the performance of one or more other corporations or indices. 

“Performance Criteria” means the following business criteria (or any combination thereof) with respect to one or more of the
Company, any Participating Company or any division or operating unit thereof: 
  

	 	i)	pre-tax income, 

  

	 	ii)	after-tax income, 

  

	 	iii)	net income (meaning net income as reflected in the Company’s financial reports for the applicable period, on an aggregate, diluted and/or per share basis, or economic net income), 

 

	 	iv)	operating income or profit, 

  

	 	v)	cash flow, free cash flow, cash flow return on investment (discounted or otherwise), net cash provided by operations, or cash flow in excess of cost of capital, 

 

	 	vi)	earnings per share (basic or diluted), 

  

	 	vii)	return on equity, 

  

	 	viii)	returns on sales or revenues, 

  

	 	ix)	return on invested capital or assets (gross or net), 

  

	 	x)	cash, funds or earnings available for distribution, 

  

	 	xi)	appreciation in the fair market value of the Common Stock, 

  

	 	xii)	operating expenses, 

  

	 	xiii)	implementation or completion of critical projects or processes, 

  

	 	xiv)	return on investment, 

  

	 	xv)	total return to stockholders (meaning the aggregate Common Stock price appreciation and dividends paid (assuming full reinvestment of dividends) during the applicable period), 

 

	 	xvi)	net earnings growth, 

  
 A - 1 

	 	xvii)	stock appreciation (meaning an increase in the price or value of the Common Stock after the date of grant of an award and during the applicable period), 

 

	 	xviii)	related return ratios, 

  

	 	xix)	increase in revenues, 

  

	 	xx)	the Company’s published ranking against its peer group of real estate investment trusts based on total stockholder return, 

  

	 	xxi)	net earnings, 

  

	 	xxii)	changes (or the absence of changes) in the per share or aggregate market price of the Company’s Common Stock, 

  

	 	xxiii)	number of securities sold, 

  

	 	xxiv)	earnings before or after any one or more of the following items: interest, taxes, depreciation or amortization, as reflected in the Company’s financial reports for the applicable period, and 

 

	 	xxv)	total revenue growth (meaning the increase in total revenues after the date of grant of an award and during the applicable period, as reflected in the Company’s financial reports for the applicable period).

  

	 	xxvi)	economic value created, 

  

	 	xxvii)	operating margin or profit margin, 

  

	 	xxviii)	Share price or total shareholder return, 

  

	 	xxix)	cost targets, reductions and savings, productivity and efficiencies, 

  

	 	xxx)	strategic business criteria, consisting of one or more objectives based on meeting objectively determinable specified market penetration, geographic business expansion, investor satisfaction, employee satisfaction,
human resources management, supervision of litigation, information technology, and goals relating to acquisitions, divestitures, joint ventures and similar transactions, and budget comparisons, 

 

	 	xxxi)	objectively determinable personal professional objectives, including any of the foregoing performance goals, the implementation of policies and plans, the negotiation of transactions, the development of long term
business goals, formation of joint ventures, research or development collaborations, and the completion of other corporate transactions, and 

  

	 	xxxii)	any combination of, or a specified increase or improvement in, any of the foregoing. 

 Where
applicable, the Performance Goals may be expressed in terms of attaining a specified level of the particular criteria or the attainment of a percentage increase or decrease in the particular criteria, and may be applied to one or more of the
Company, a Subsidiary or affiliate, or a division or strategic business unit of the Company, or may be applied to the performance of the Company relative to a market index, a group of other companies or a combination thereof, all as determined by
the Committee. 

  
 A - 2 

 The Performance Goals may include a threshold level of performance below which no payment shall
be made (or no vesting shall occur), levels of performance at which specified payments shall be made (or specified vesting shall occur), and a maximum level of performance above which no additional payment shall be made (or at which full vesting
shall occur). 
 Except as otherwise expressly provided, all financial terms are used as defined under Generally Accepted Accounting
Principles (“GAAP”) and all determinations shall be made in accordance with GAAP, as applied by the Company in the preparation of its periodic reports to stockholders. 

To the extent permitted by Section 162(m) of the Code, unless the Committee provides otherwise at the time of establishing the
performance goals, for each fiscal year of the Company, the Committee shall have the authority to make equitable adjustments to the Performance Goals in recognition of unusual or non-recurring events affecting the Company or any Subsidiary or
affiliate or the financial statements of the Company or any Subsidiary or affiliate and may provide for objectively determinable adjustments, as determined in accordance with GAAP, to any of the Performance Criteria described above for one or more
of the items of gain, loss, profit or expense: (A) determined to be extraordinary or unusual in nature or infrequent in occurrence, (B) related to the disposal of a segment of a business, (C) related to a change in accounting
principle under GAAP or a change in applicable laws or regulations, (D) related to discontinued operations that do not qualify as a segment of a business under GAAP, and (E) attributable to the business operations of any entity acquired by
the Company during the fiscal year. 

  
 A - 3EX-10.1

 Exhibit 10.1 

Separation Agreement and General Release 

This Agreement (“Agreement”) is made effective as of February 27, 2017, by and between StoneMor GP LLC (“the
Company”), the general partner of StoneMor Partners L.P. (the “Partnership”), and Sean McGrath (“you”): 
 WHEREAS,
you have submitted your resignation from your position as Chief Financial Officer of the Company, and from all positions held by you in any of the Company’s parent, subsidiary, related and/or affiliated companies, as more fully set forth below;
and 
 NOW, THEREFORE, in consideration of the mutual covenants set forth below, the parties agree as follows: 

1. General Terms of Resignation.  

(a) You have agreed to delay the effectiveness of your resignation until the filing of the Partnership’s Annual Report on Form 10-K for
the year ended December 31, 2016 (the “Annual Report”) with the Securities and Exchange Commission (the “SEC”), which, as more fully described in Paragraph 11, shall be executed and certified by you in your capacity as the
Company’s Chief Financial Officer and principal accounting officer (the “Effective Date” of your resignation), which filing is anticipated to occur on or about March 1, 2017. You further agree that you will continue as a
full-time employee of the Company from the date hereof through the Effective Date; provided, that if the Annual Report is not filed on or before March 1, 2017, then you agree to continue as an employee of the Company on a part-time basis from
March 2, 2017 through the Effective Date in order to meet your obligations under this Agreement, including your duties with respect to the completion, filing, certification and signing of the Annual Report. You agree to use your reasonable
best efforts to cause the Annual Report to be filed no later than March 1, 2017. In the event that the Company timely files with the SEC a request for an extension of the required filing date for the Annual Report, you agree to use your
reasonable best efforts to cause the Annual Report to be promptly filed after such request is filed with the SEC. 
 (b) Your employment as
Chief Financial Officer of the Company and all other positions held by you in any of the Company’s parent, subsidiary, related and/or affiliated companies shall end, effective as of the Effective Date. If requested by the Company or any other
such entities, you agree to execute, within two business days, any documentation necessary to reflect any such resignations. You will be paid your base pay through March 1, 2017. Thereafter, you will not receive any other compensation except as
provided in this Agreement. 
 (c) You remain obligated to comply with the Confidentiality and Non-Compete Agreement you signed on
September 1, 2015 (“Confidentiality and Non-Compete Agreement”). 
 2. Separation Benefits. If you remain employed
through the Effective Date and otherwise comply with this Agreement, the Company will pay you $100,000.00, less taxes and required withholding (“Separation Benefits”). The net payment will be made in a lump sum on the next regular payday
immediately following the filing of the Annual Report, assuming you have also executed this Agreement. Separately, the Company also agrees to pay you $100,000.00, less taxes and required withholding, as a buyout of the 1% GP Incentive Interest that
was set forth in your offer letter, dated August 26, 2015, as well as pay you $53,000.00, less taxes and required withholding, as a cash distribution on that Incentive Interest (this net payment will be made in a lump sum on the next regular
payday following the execution of this Agreement). 

 3. General Release. In exchange for the Company’s Separation Benefits, you release
and forever discharge, to the maximum extent permitted by law, the Company and each of the other “Releasees” as defined below, from any and all claims, causes of action, complaints, lawsuits, demands or liabilities of any kind, known or
unknown by you, those that you may have already asserted or raised as well as those that you have never asserted or raised (collectively “Claims”) as described below which you, your heirs, agents, administrators or executors have or may
have against the Company or any of the other Releasees arising out of or relating to any conduct, matter, event or omission existing or occurring before you sign this Agreement, and any monetary or other personal relief for such Claims, including
but not limited to the following: (i) any Claims having anything to do with your employment (including the cessation of your employment on the Effective Date) with the Company and/or any of its parent, subsidiary, related and/or affiliated
companies; (ii) any Claims for severance, benefits, bonuses, incentive compensation, equity awards and interests, commissions and/or other compensation of any kind; (iii) any Claims for reimbursement of expenses of any kind; (iv) any
Claims for attorneys’ fees or costs; any Claims under the Employee Retirement Income Security Act (“ERISA”); (v) any Claims of discrimination and/or harassment based on age, sex, pregnancy, race, religion, color, creed,
disability, handicap, failure to accommodate, citizenship, marital status, national origin, ancestry, sexual orientation, gender identity, genetic information or any other factor protected by Federal, State or Local law as enacted or amended (such
as Title VII of the Civil Rights Act of 1964, Section 1981 of the Civil Rights Act of 1866, the Americans with Disabilities Act, the Equal Pay Act, the Genetic Information Non-Discrimination Act and the Pennsylvania Human Relations Act) and any
Claims for retaliation under any of the foregoing laws; (vi) any Claims under the Family and Medical Leave Act; any Claims under the Pennsylvania constitution; any whistleblower or retaliation Claims; (vii) any Claims under your offer
letter, dated August 26, 2015 (“Offer Letter”); (viii) any Claims for 1% GP Incentive Interest and any related sources of cash flow as set forth in your Offer Letter or otherwise; and/or (ix) any other statutory, regulatory,
common law or other Claims of any kind, including, but not limited to, Claims for breach of contract, libel, slander, fraud, wrongful discharge, promissory estoppel, equitable estoppel, violation of public policy, invasion of privacy,
misrepresentation, emotional distress or pain and suffering. 
 (b) Releasees. The term “Releasees” includes: the Company,
the Partnership, and any and all of their respective direct or indirect parent, subsidiary, related and/ or affiliated companies, and each of their past and present employees, officers, directors, attorneys, owners, shareholders, members, managers,
partners, insurers, benefit plan fiduciaries and agents, and all of their respective successors and assigns. 
 4. Non-Released
Claims. The General Release in Paragraph 3 above does not apply to: any Claims for vested benefits under any Company benefits plan; any Claims to require the Company to honor its commitments in this Agreement; any Claims to interpret or to
determine the scope, meaning, enforceability or effect of this Agreement; any Claims that arise after you have signed this Agreement; any other Claims that cannot be waived by a private agreement; and any Claims for defense or indemnification under
any insurance policies or Company by-laws. The General Release is subject to and restricted by your Retained Rights in Paragraph 5. 
 5.
Retained Rights. 

 (a) Regardless of whether or not you sign this Agreement, nothing in this Agreement is intended
to or shall be interpreted to restrict or otherwise interfere with: (i) your obligation to testify truthfully in any forum; (ii) your right and/or obligation to contact, cooperate with, provide information to, file a charge with, or
otherwise participate in any proceeding of, any government agency, commission or entity (including, but not limited, to the EEOC and the SEC); or (iii) your right to disclose any information or produce any documents as is required by law or
legal process. However, the General Release does prevent you, to the maximum extent permitted by law, from obtaining any monetary or other personal relief for any of the Claims you have released in Paragraph 3 with regard to any charge you may file
or which may be filed on your behalf. 
 (b) Notwithstanding the foregoing, or any other provision of this Agreement, nothing in this
Agreement is intended to prohibit you from reporting possible violations of federal, state or local law, ordinance or regulation to any governmental agency or entity, including, but not limited to, the Department of Justice, the SEC, the Congress
and any agency Inspector General, or otherwise taking action or making disclosures that are protected under the whistleblower provisions of any federal, state or local law, ordinance or regulation, including, but not limited to, Rule 21F-17
promulgated under the Securities Exchange Act of 1934, as amended. You are entitled to make reports and disclosures or otherwise take action under this paragraph without prior authorization from or subsequent notification to the Company. Similarly,
nothing set forth in this Agreement limits your right to receive a monetary award for information provided to the SEC pursuant to Rule 21F-17 promulgated under the Securities Exchange Act of 1934, as amended, or for information provided to the DOL
or any other government agency, commission or entity. 
 6. Adequacy of Consideration. You acknowledge and agree that the
Company’s Separation Benefits under Paragraph 2 above: are not required by any policy, plan or prior agreement; are well in excess of any compensation that may be due to you for any part-time work performed by you from March 1, 2017
through the Effective Date in accordance with Paragraph 1(a); constitute adequate and sufficient consideration to support your General Release above; and fully compensate you for Claims you are releasing. “Consideration” means something of
value to which you are not already entitled. 
 7. Duty to Notify. In the event you receive a request or demand, orally, in writing,
electronically or otherwise, for the disclosure or production of confidential information which you created or acquired in the course of your employment, you must notify immediately the Company’s General Counsel, Chief Legal Officer and
Secretary by calling: (215) 826-2814 and notify him immediately in writing, via first class mail, at the following address: StoneMor GP LLC, 3600 Horizon Blvd., Trevose, PA 19053, enclosing a copy of the request or demand as well as any and all
potentially responsive documents. You shall wait at least ten (10) days (or the maximum time permitted by such legal process, if less) after sending the letter before making a disclosure or production to give the Company time to determine
whether the disclosure or production involves confidential and/or proprietary information, in which event the Company may seek to prohibit and/or restrict the production and/or disclosure and/or to obtain a protective order. This obligation shall
not apply in the event of requests or demands for confidential information from any government agency, commission or entity. 
 8.
Non-Defamation. You agree that you will not, directly or indirectly, make or ratify any defamatory comments or remarks as defined by law, in writing, orally or electronically, about the Company or any other Releasee (as defined in Paragraph
3(c) above) and their respective products and services. This restriction is subject to and limited by your Retained Rights in Paragraph 5. 

 9. Intentionally Omitted. 

10. Affirmation. In executing this Agreement, you affirm that you are not aware of anything in regard to the Company’s, the
Partnership’s or any of the Company’s other subsidiaries, affiliates or related entities financial statements, internal controls, or results from operations (including trust funds) with which you are concerned to the point of compelling
and/or causing your resignation. Further, by executing this Agreement, you hereby affirm that you have disclosed to the Company’s General Counsel, Chief Legal Officer and Secretary all information within your knowledge as of the date of this
Agreement, and will disclose to the Company’s General Counsel, Chief Legal Officer and Secretary any additional information of which your become aware prior to the Effective Date, related to any pending or threated legal matter with which you
have had any direct or indirect involvement. This provision is subject to and limited by your Retained Rights in Paragraph 5. 
 11.
Cooperation Services. As a condition to being eligible for the Separation Benefits: 
 (a) You will faithfully and diligently perform
your functions as Chief Financial Officer and principal accounting officer of the Company and in all other capacities in which you serve the Company’s direct or indirect parent, subsidiary, related and/or affiliated companies, including
preparing, certifying (including for purposes of Sections 302 and 906 of the Sarbanes-Oxley Act) and timely filing the Annual Report with the SEC, and such other periodic reports that are, or may become, required to be filed or furnished with the
SEC prior to the Effective Date, it being further understood that you will continue to perform such functions for any period during which you are employed by the Company on a part-time basis in accordance with Paragraph 1(a) 

(b) Both prior to and after the Effective Date, you will cooperate with the Company, without any additional compensation, in connection with
(i) any restatement of previously-issued financial statements or other financial information, (ii) any amendments of previously-filed periodic reports and registration statements and (iii) any comment letter or inquiry of the SEC or
any other regulatory body relating to the Company or the Partnership, including, in each case, providing reasonably requested information relevant to the matters that are the subject of any such restatement, amendment, comment letter or inquiry. You
will use your reasonable best efforts to cause, prior to the Effective Date, the resolution of any and all written comments of the SEC or any other regulatory body received by the Company or the Partnership prior to such date, if any. 

(c) Both prior to and after the Effective Date, you agree to cooperate with and provide assistance to the Company, without any additional
compensation, if called upon by authorized agents of the Company or the Company’s attorneys with regard to any lawsuit, claim, action, investigation, inquiry, administrative action or review or otherwise, that is currently pending or that may
be brought against the Company, or in connection with any internal investigation by the Company. You agree to make yourself available for interviews, meetings, depositions, hearings and/or trials without the need for subpoena or assurances by the
Company, providing any and all documents in your possession that relate to the proceedings, and providing assistance in locating any and all relevant notes and/or documents is necessary. Any cooperation shall be provided by you at reasonable
times and locations, with as much advance notice as possible by the Company. In any circumstance, to the extent you are required to incur out-of-pocket expenses in connection with any cooperation that the Company may request of you (such as for
travel), the Company will fully reimburse you for reasonable out-of-pocket expenses upon presentation of appropriate receipts. For purposes of this Paragraph 11(c), “Company” includes the Partnership and also any and all of their
respective direct and indirect parent, subsidiary, related and/or affiliated companies. 

 12. Interpretation of Agreement. Nothing in this Agreement is intended as or shall be
construed as an admission or concession of liability or wrongdoing by the Company or any other Releasee as defined above. This Agreement shall be governed by and construed in accordance with the laws of Pennsylvania and without the aid of any canon,
custom or rule of law requiring construction against the draftsperson. If any provision of this Agreement or application thereof is adjudicated to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability
shall not affect any other provision or application of this Agreement which can be given effect without the invalid or unenforceable provision or application.  

13. Entire Agreement. This Agreement constitutes the entire agreement between the parties regarding the matters contained herein and
supersedes any and all prior representations, agreements, written or oral, expressed or implied, except for the Confidentiality and Non-Compete Agreement and the Agreement for Legal Services and Waiver of Potential Conflict with Duane Morris LLP,
dated January 20, 2017, which survive the cessation of your employment and are incorporated herein by reference. This Agreement may not be modified or amended other than by an agreement in writing signed by both parties. This Agreement shall be
binding upon and be for the benefit of the parties as well as the employee’s heirs and the Company’s successors and assigns. 

14. Acknowledgment. You acknowledge and agree that, subsequent to the cessation of your employment, you shall not be eligible for any
payments from the Company or Company-paid benefits, except as expressly set forth in this Agreement. You also acknowledge and agree that you have been paid for all time worked and have received all other compensation owed to you. 

15. Representations. You agree and represent that: (a) you have read carefully the terms of this Agreement, including the General
Release; (b) you have had an opportunity to and have been encouraged to review this Agreement, including the General Release, with an attorney; (c) you understand the meaning and effect of the terms of this Agreement, including the waiver
of Claims as set forth in the General Release (subject to the limitations in Paragraph 4 above and your Retained Rights in Paragraph 5 above); (d) you were given adequate time and information to determine whether you wished to sign this
Agreement and your decision to sign this Agreement and waive any and all Claims in Paragraph 3 above is of your own free and voluntary act without compulsion of any kind; and (e) no promise or inducement not expressed in this Agreement has been
made to you. 
 IN WITNESS WHEREOF, the Company and you have executed this Agreement intending to be legally bound: 

 

							
	 /s/ Sean P. McGrath
	 		 	StoneMor GP LLC
	Sean P. McGrath	 		 	
				
		 		 	By:	 	 /s/ Lawrence Miller

		 		 	Name:	 	Lawrence Miller
		 		 	Title:	 	President and Chief Executive Officer
			
	Date: February 27, 2017	 		 	Date: February 27, 2017

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00267-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00267-of-00352.parquet"}]]