Document:

Apollo Commercial Real Estate Finance, Inc. 2009 Equity Incentive Plan

 Exhibit 10.1 
 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 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

  

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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.

 “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

  

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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. 

  

	 	(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

  

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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.

 “Phantom share” shall mean a right, pursuant to the Plan, of the Grantee to payment of the Phantom Share Value. 
  

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 “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)	 	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 

  

	 	(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. 
  

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 (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. 
 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

  

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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 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. 

  

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	 	(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. 
 (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. 
  

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 (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. 
 (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. 
 (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. 
  

 11 

 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. 
  

	 	(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). 

  

 12 

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

 13 

 (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 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

  

 14 

	 	 
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 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

  

 15 

	 	 
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

  

 18 

	 	 
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. 

 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

  

 21 

 
determination of the Company, would result in a material risk of a violation by the Company of Section 13(k) of the Exchange Act. 
 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. 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. 
 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 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 

 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. 
 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. 
  

 23 

 29.    REGIONAL VARIATION. The Committee reserves the right to authorize the establishment
of, and to grant Awards 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-3Officer's Certificate, dated September 30, 2009

 Exhibit 4.2 
 Execution Version 
  
  
  
 ALLIANT ENERGY CORPORATION 
 OFFICER’S CERTIFICATE 
 Dated as of September 30, 2009 

  
  
 Setting Forth Terms of a Series of Senior Notes 
 4.00% Senior Notes due October 15, 2014 
  
  
 Pursuant to the
Indenture 
 Dated as of September 30, 2009 
  
  
  

 OFFICER’S CERTIFICATE 
 The undersigned, the Vice President-Chief Financial Officer and Treasurer of Alliant Energy Corporation, a corporation duly organized and
existing under the laws of the State of Wisconsin (the “Company”), hereby certifies as provided below pursuant to Section 301 of the Indenture, dated as of September 30, 2009 (the “Indenture”), between the Company and
Wells Fargo Bank, National Association, a national banking association, as Trustee (the “Trustee”). This Officer’s Certificate, dated September 30, 2009, is delivered, pursuant to authority granted to the undersigned by
resolutions adopted on August 4, 2009, by the Board of Directors of the Company, such Board Resolution having been delivered in accordance with the Indenture to the Trustee on or prior to the date hereof, for the purpose of creating and setting
forth the terms of a series of Senior Notes to be issued pursuant to the Indenture. Capitalized terms not otherwise defined herein are used as defined in the Indenture. 
 1. The Board of Directors of the Company has authorized the creation by the Company of one or more series of Senior Notes under the Indenture through one or more Officer’s Certificates, and pursuant
to such authorization and in accordance with the Indenture this Officer’s Certificate is being delivered to the Trustee to establish the terms of a series of Senior Notes as set forth therein and herein. 
 2. The title of the Senior Notes shall be “4.00% Senior Notes due October 15, 2014” (herein called the “Senior
Notes”). 
 3. The aggregate principal amount of the Senior Notes which may be authenticated and delivered under the
Indenture initially shall be U.S. $250,000,000, except for Senior Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Senior Notes as provided in Sections 203, 303, 304, 907 or 1107 of
the Indenture. Notwithstanding the foregoing limit on the aggregate principal amount of the Senior Notes, the Senior Notes may be reopened in accordance with Section 301 of the Indenture. 
 4. Subject to earlier redemption, the principal of the Senior Notes shall be payable in U.S. dollars on October 15, 2014. 

5. The Senior Notes initially shall be issued in the form of one or more Global Securities in substantially the form set forth in
Exhibit A hereto. 
 6. The Senior Notes shall be issued in denominations of $2,000 and integral multiples of $1,000 in
excess thereof. 
 7. The Senior Notes shall bear interest at the rate of 4.00% per annum; such interest shall accrue from
October 2, 2009 (or from the most recent Interest Payment Date to which interest on the Senior Notes has been paid or provided for); the Interest Payment Dates on which such interest shall be payable shall be April 15 and October 15
in each year, commencing April 15, 2010; the regular record dates for the determination of Holders to whom interest is payable shall be the 1st day of the month of such Interest Payment Date. Interest on the Senior Notes shall be payable in
U.S. dollars. 
  

 1 

 8. No sinking fund is provided for the Senior Notes. 
 9. The Trustee is hereby appointed as initial Paying Agent and initial Security Registrar for the Senior Notes. The Senior Notes shall be
payable at the Corporate Trust Office of the Trustee. 
 10. The Senior Notes shall be issued in the form of one or more
permanent Global Securities as provided in Section 203 of the Indenture and deposited with, or on behalf of, the Depositary, or with the Trustee, as custodian for the Depositary, duly executed by the Company and authenticated by the Trustee.
The Senior Notes shall initially be registered in the name of Cede & Co., as the nominee of The Depository Trust Company. 
 11. The Senior Notes shall be redeemable at the option of the Company at any time in whole or from time to time in part at a Redemption Price equal to the greater of (a) 100% of the principal amount of such Senior Notes and
(b) the sum, as determined by the Independent Investment Banker and delivered to the Trustee, of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the Redemption Date)
discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 30 basis points, plus in each case accrued interest to the Redemption Date; provided,
however, that installments of interest on Senior Notes due on an Interest Payment Date which occurs on or before any Redemption Date shall be payable to the Holders of such Senior Notes who were registered Holders as of the close of business
on the record date immediately preceding such Interest Payment Date. Notice of any redemption pursuant to this Section 11 shall be given in the manner and at the time set forth in Section 1104 of the Indenture; provided, however, that such
notice need not state the dollar amount of the Redemption Price, and may instead recite the basis for determining the Redemption Price as provided in this Section 11, if such dollar amount has not been determined pursuant to this
Section 11 as of the date such notice is being given to the Holders of the Senior Notes being redeemed. 
 12. The terms
defined below, for all purposes of the Senior Notes under the Indenture and this Officer’s Certificate, shall have the meanings specified, unless the context clearly otherwise requires or unless otherwise indicated: 
 “Comparable Treasury Issue” means the United States Treasury security or securities selected by an Independent Investment Banker
as having an actual or interpolated maturity comparable to the remaining term of the Senior Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate
debt securities of a comparable maturity to the remaining term of such Senior Notes. 
 “Comparable Treasury Price”
means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Independent
Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations. 
  

 2 

 “Independent Investment Banker” means one of the Reference Treasury Dealers
appointed by the Company. 
 “Reference Treasury Dealer” means (1) each of Citigroup Global Markets Inc. and J.P.
Morgan Securities Inc., or their Affiliates which are primary U.S. Government securities dealers, and their respective successors, unless any of them ceases to be a primary dealer in U.S. government securities (“Primary Treasury Dealer”),
in which case the Company shall substitute another Primary Treasury Dealer located in The City of New York, and (2) any two other Primary Treasury Dealers located in The City of New York selected by the Company. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average,
as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by the
Reference Treasury Dealers at 3:30 p.m., New York City time, on the third Business Day preceding such Redemption Date. For purposes of this definition only, “Business Day” means any day that is not a day on which banking institutions in
New York City are authorized or required by law or regulation to close. 
 “Treasury Rate” means, with respect to any
Redemption Date, the rate per annum equal to the semiannual equivalent yield to maturity or interpolated (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for such Redemption Date. 
 13. Other terms of the Senior Notes are as
set forth in the form of the Senior Notes. 
  

 3 

 IN WITNESS WHEREOF, I have set my hand as of the day and year first above written. 
  

			
	ALLIANT ENERGY CORPORATION
		
	By:	 	/S/    PATRICIA L.
KAMPLING      
	Name: 	 	Patricia L. Kampling
	Title:	 	 Vice President-Chief Financial Officer
 and Treasurer

 Exhibit A 
 [Form of 4.00% Senior Notes due October 15, 2014] 
 [GLOBAL NOTE LEGEND]

 [THIS SENIOR NOTE IS A SENIOR NOTE AND A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SENIOR NOTES IN DEFINITIVE FORM, THIS SENIOR NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 
 UNLESS THIS SENIOR NOTE CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SENIOR NOTE CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 
 THE FOLLOWING SUMMARY OF TERMS IS
SUBJECT TO THE INFORMATION SET FORTH ON THE REVERSE HEREOF: 
  

					
	PRINCIPAL AMOUNT:	 	ORIGINAL ISSUE DATE:	 	INTEREST RATE:
	$[__________]	 	October 2, 2009	 	4.00% per annum
			
	MATURITY DATE:	 	INTEREST PAYMENT DATES:	 	THIS SENIOR NOTE IS A:
	October 15, 2014	 	April 15 and October 15,	 	 ̈ Global Book-Entry Senior Note
		 	commencing April 15, 2010	 	 ̈ Certificated Senior Note

 REGISTERED OWNER: [            ]

  

 2 

 ALLIANT ENERGY CORPORATION 
 4.00% SENIOR NOTES DUE OCTOBER 15, 2014 
  

			
	No. [            ]	 	Principal Amount: $[            ]

 CUSIP No: 018802 AA6 
 ALLIANT ENERGY CORPORATION, a corporation duly organized and existing under the laws of the State of Wisconsin (herein called the “Company,” which term includes any successor Person pursuant to
the applicable provisions of the Indenture hereinafter referred to), for value received, hereby promises to pay to [            ], or registered assigns, the Principal Amount stated
above on the Maturity Date stated above, and to pay interest thereon from and including the most recent Interest Payment Date to which interest has been paid or duly provided for, or if no interest has been paid, from and including the Original
Issue Date stated above, semi-annually in arrears on the Interest Payment Dates set forth above and on the Maturity Date stated above, commencing April 15, 2010, at the rate of 4.00% per annum until the principal hereof is paid or made
available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this 4.00% Senior Note Due October 15, 2014 (this
“Senior Note,” and together with all other 4.00% Senior Notes Due October 15, 2014 (the “Senior Notes”)) (or one or more Predecessor Notes) is registered at the close of business on the Regular Record Date for such interest,
which shall be the 1st day of the month of such Interest Payment Date; provided, however, that interest payable at the Maturity Date or on a Redemption Date will be paid to the Person to whom principal is payable. Any such interest not
so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Senior Note (or one or more Predecessor Notes) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of the Senior Notes not less than 10 days prior to such Special Record Date, or be paid at any time in
any other lawful manner not inconsistent with the requirements of the Indenture and any securities exchange, if any, on which the Senior Notes may be listed, and upon such notice as may be required by any such exchange, all as more fully provided in
said Indenture. 
 Payments of interest on this Senior Note will include interest accrued to but excluding the respective
Interest Payment Dates. Interest payments for this Senior Note shall be computed and paid on the basis of the 360-day year of twelve 30-day months. In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any Senior Note
shall not be a Business Day, then payment of interest or principal (and premium, if any) shall be made on the next succeeding Business Day, except that, if such Business Day is in the next succeeding calendar year, such payment shall be made on the
immediately preceding Business Day, in each case with the same force and effect as if made on the Interest Payment Date or Redemption Date, or at the Stated Maturity, provided that no interest shall accrue on the amount so payable for the period
from and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be. 
  

 3 

 Payment of principal of, premium, if any, and interest on the Senior Notes shall be made in
such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. Payments of principal of, premium, if any, and interest on the Senior Notes represented by a Global Security
shall be made by wire transfer of immediately available funds to the Holder of such Global Security, provided that, in the case of payments of principal and premium, if any, such Global Security is first surrendered to the Paying Agent. If any of
the Senior Notes are no longer represented by a Global Security, payments of principal, premium, if any, and interest shall be made by wire transfer of immediately available funds to the accounts specified by the Holders of the certificated Senior
Notes or, if no such account is specified, by mailing a check to each such Holder’s registered address. 
 REFERENCE IS
HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SENIOR NOTE SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. 
 Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this
Senior Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 
 Dated: __________, 20__

  

			
	ALLIANT ENERGY CORPORATION
		
	By:	 	 
	Name:	 	
	Title:	 	
		
	By:	 	 
	Name:	 	
	Title:	 	

  

 4 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This Senior Note is one of the Senior Notes of the series designated as the 4.00% Senior Notes due October 15, 2014 referred to in the
within-mentioned Indenture. 
 Dated: __________, 20__ 
  

			
	 WELLS FARGO BANK,
 NATIONAL ASSOCIATION, 
 As Trustee

		
	By:	 	 
		 	Authorized Signatory

  

 5 

 Reverse of Senior Note 
 This 4.00% Senior Note Due October 15, 2014 is one of a duly authorized issue of Senior Notes of the Company, issued and issuable in
one or more series under a Senior Note Indenture, dated as of September 30, 2009 (the “Indenture”), as supplemented by an Officer’s Certificate, dated as of September 30, 2009 (the “Officer’s Certificate”, and
with all additional instruments establishing the terms of particular Senior Notes, being herein called the “Indenture”), between the Company and Wells Fargo Bank, National Association, as Trustee (herein called the “Trustee,”
which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a description of the respective rights, limitations of rights, duties and immunities of the Company, the Trustee and the Holders of
Senior Notes thereunder and of the terms and conditions upon which Senior Notes are, and are to be, authenticated and delivered. The acceptance of this Senior Note shall be deemed to constitute the consent and agreement by the Holder hereof to all
of the terms and provisions of the Indenture. 
 The Company may redeem the Senior Notes at any time and from time to time at
the Company’s option, in whole or in part, at a redemption price equal to the greater of (i) 100% of the principal amount of such Senior Notes and (ii) the sum of the present values of the remaining scheduled payments of principal and
interest thereon (exclusive of interest accrued to the Redemption Date) discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 30 basis points, plus in each case
accrued interest to the Redemption Date. 
 Interest installments whose Stated Maturity is on or prior to such Redemption Date
will be payable to Holders of such Senior Notes, or one or more Predecessor Notes, of record at the close of business on the relevant Record Dates referred to on the face hereof, all as provided in the Indenture. 
 In the case of an Optional Redemption, notice of redemption will be in writing and mailed first-class postage-prepaid not less than 30 days
nor more than 60 days prior to the Redemption Date to each Holder of the Senior Notes to be redeemed at the Holder’s registered address; provided, however, that such notice need not state the dollar amount of the Redemption Price,
and may instead recite the basis for determining the Redemption Price, if such dollar amount has not been determined as of the date such notice is being given to the Holders of the Senior Notes being redeemed. If money sufficient to pay the
Redemption Price of all the Senior Notes (or portions thereof) to be redeemed on the Redemption Date is deposited with the Paying Agent or the Trustee on or prior to the Redemption Date, from and after such Redemption Date such Senior Notes or
portions thereof shall cease to bear interest. The Senior Notes in denominations larger than $2,000 in principal amount may be redeemed in part but only in integral multiples of $1,000. 
 In the event of redemption of this Senior Note in part only, a new Senior Note or Senior Notes of like tenor for the unredeemed portion
hereof will be issued in the name of the Holder hereof upon the surrender hereof. 
  

 6 

 As provided in the Indenture and subject to certain limitations therein set forth, this
Senior Note or any portion of the principal amount hereof will be deemed to have been paid for all purposes of the Indenture and to be no longer Outstanding thereunder, and the Company’s entire indebtedness in respect thereof will be satisfied
and discharged, if there has been irrevocably deposited with the Trustee or any Paying Agent (other than the Company), in trust, money in an amount which will be sufficient and/or Eligible Obligations, the principal of and interest on which when
due, without regard to any reinvestment thereof, will provide moneys which, together with money, if any, deposited with or held by the Trustee or such Paying Agent, will be sufficient to pay when due the principal of and premium, if any, and
interest on this Senior Note when due. 
 If an Event of Default shall occur and be continuing, the Trustee or the Holders of
not less than 33% in aggregate principal amount of the Outstanding Senior Notes may declare the principal amount of all Senior Notes then Outstanding to be due and payable immediately by notice in writing to the Company (and to the Trustee if given
by Holders). 
 The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee to enter into
one or more supplemental indentures for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, the Indenture with the consent of the Holders of not less than a majority in aggregate principal
amount of Outstanding Senior Notes of each series affected by such supplemental indenture. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of Senior Notes, on behalf of the Holders of all
Senior Notes, to waive certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Senior Note shall be conclusive and binding upon such Holder and upon all future Holders of this Senior Note
and of any Senior Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Senior Note. 
 As provided in and subject to the provisions of the Indenture, the Holder of this Senior Note shall not have the right to institute any
proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to
the Senior Notes, the Holders of at least a majority in aggregate principal amount of the Senior Notes at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own
name as Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of at least a majority in aggregate principal amount of the Senior Notes at the time Outstanding a direction inconsistent with
such written request, and shall have failed to institute any such proceeding for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Senior Note for the
enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 
 No reference herein to the Indenture and no provision of this Senior Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal
of and any premium and interest on this Senior Note at the times, place and rate, and in the coin or currency, herein prescribed. 
  

 7 

 As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Senior Note is registrable in the Security Register, upon surrender of this Senior Note for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this
Senior Note are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company, the Trustee or the Security Registrar, as the case may be, duly executed by the Holder hereof or such Holder’s
attorney duly authorized in writing, and thereupon one or more new Senior Notes of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
 The Senior Notes are issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess
thereof. As provided in the Indenture and subject to certain limitations therein set forth, the Senior Notes are exchangeable for a like aggregate principal amount of Senior Notes and of like tenor of a different authorized denomination, as
requested by the Holder surrendering the same. 
 No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 The Company shall not be required to issue or to provide for the registration of the transfer of or the exchange of (A) any Senior Note during a period of 15 days immediately preceding the date
notice is to be given identifying the serial numbers of the Senior Notes called for redemption, or (B) any Senior Note selected for redemption in whole or in part, except the unredeemed portion of any Senior Note being redeemed in part.

 Prior to due presentment of this Senior Note for registration of transfer, the Company, the Trustee and any agent of the
Company or the Trustee may treat the Person in whose name this Senior Note is registered as the owner hereof for all purposes, whether or not this Senior Note is overdue, and neither the Company, the Trustee nor any such agent shall be affected by
notice to the contrary. 
 This Senior Note shall be governed by, and construed and enforced in accordance with, the internal
laws of the State of New York without regard to the principles of conflicts of laws thereunder, except to the extent that the Trust Indenture Act shall be applicable. 
 As provided in the Indenture, no recourse shall be had for the payment of the principal of, premium, if any, or interest with respect to this Senior Note, or any part thereof, or for any claim based
hereon or otherwise in respect hereof, or of the indebtedness represented hereby, or upon any obligation, covenant or agreement under the Indenture, against any incorporator, shareholder, officer or director, as such, past, present or future, of the
Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional provision, statute or rule of law or by the enforcement of any
assessment or penalty or otherwise; it being expressly agreed and

  

 8 

 
understood that the Indenture and all the Senior Notes are solely corporate obligations and that any such personal liability is hereby expressly waived and released as a condition of, and as part
of the consideration for, the execution of the Indenture and the issuance of this Senior Note. 
 All terms used in this Senior
Note which are not defined herein shall have the meanings assigned to them in the Indenture. 
  

 9 

 [Form of Assignment Form] 
 ASSIGNMENT FORM 
 To assign this Senior Note, fill in the
form below: 
  

	
	 I or we assign and transfer this Senior Note to _____________________________________________________________

  

	
	 

  

	
	 

  

	
	 

  

	
	 

 (Print or type assignee’s name, address and zip code) 
 (Insert assignee’s soc. sec. or tax I.D. no.) 
 and irrevocably appoint ____________________ agent to transfer this Senior Note on the books of the Company. The agent may substitute another to act for him. 
  

							
	Date: _______________, _____	  		  	Your signature:	  	 
				
		  		  		  	 

 (Sign exactly as your name appears on the face of this Senior Note) 
  

							
	Signature Guaranteed:	  		  		  	
				
	  	  	 	  	 	  	 
	Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Security Registrar, which requirements include
membership or participation in the Securities Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.	  		  	

 * * * 
  

 10

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