Document:

2004 Employee Stock Purchase Plan, as amended

 Exhibit 10.4A 
 TERCICA, INC. 
 2004 EMPLOYEE STOCK PURCHASE PLAN 
 (Amended September 6, 2006) 
 The
following constitutes the provisions of the 2004 Employee Stock Purchase Plan of Tercica, Inc. 
 1. Purpose. The purpose of the Plan
is to provide Employees with an opportunity to purchase Common Stock through accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an “employee stock purchase plan” under Section 423 of the
Code. The provisions of the Plan, accordingly, shall be construed so as to extend and limit Plan participation in a manner that is consistent with the requirements of that section of the Code. 
 2. Definitions. 
 (a)
“Administrator” means the Board or any committee thereof designated by the Board in accordance with Section 14. 
 (b)
“Board” means the Board of Directors of the Company. 
 (c) “Change in Control” means the occurrence of any
of the following events: 
 (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the
“beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then
outstanding voting securities; or 
 (ii) The consummation of the sale or disposition by the Company of all or substantially all of the
Company’s assets; or 
 (iii) The consummation of a merger or consolidation of the Company, with any other corporation, other than a
merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or
its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company, or such surviving entity or its parent outstanding immediately after such merger or consolidation. 
 (iv) A change in the composition of the Board, as a result of which fewer than a majority of the Directors are Incumbent Directors. “Incumbent
Directors” means Directors who either (A) are Directors as of the effective date of the Plan (pursuant to Section 23), or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority
of those Directors whose election or nomination was not in connection with any transaction described in subsections (i), (ii) or (iii) or in connection with an actual or threatened proxy contest relating to the election of Directors of the
Company. 
  

 1. 

 (d) “Code” means the Internal Revenue Code of 1986, as amended. Any reference to a
section of the Code herein shall be a reference to any successor or amended section of the Code. 
 (e) “Common Stock” means
the common stock of the Company. 
 (f) “Company” means Tercica, Inc., a Delaware corporation. 
 (g) “Compensation” means an Employee’s base straight time gross earnings, commissions (to the extent such commissions are an
integral, recurring part of compensation), overtime and shift premium, but exclusive of payments for incentive compensation, bonuses and other compensation. 
 (h) “Designated Subsidiary” means any Subsidiary that has been designated by the Administrator from time to time in its sole discretion as eligible to participate in the Plan. 
 (i) “Director” means a member of the Board. 
 (j) “Employee” means any individual who is a common law employee of an Employer and is customarily employed for at least twenty (20) hours per week and more than five (5) months in any
calendar year by the Employer. For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave or other leave of absence approved by the Employer. Where the period of leave exceeds
ninety (90) days and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated on the 91st day of such leave. 
 (k) “Employer” means any one or all of the Company and its Designated Subsidiaries. 
 (l) “Enrollment Date” means the first Trading Day of each Offering Period. 
 (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended, including the rules and regulations promulgated thereunder.

 (n) “Exercise Date” means the first Trading Day on or after May 15 and November 15 of each year. The first
Exercise Date under the Plan shall be May 17, 2004. 
 (o) “Fair Market Value” means, as of any date, the value of
Common Stock determined as follows: 
 (i) If the Common Stock is listed on any established stock exchange or a national market system,
including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for the Common Stock (or the closing bid, if no sales were reported) as quoted
on such exchange or system on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable, or; 
  

 2. 

 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are
not reported, its Fair Market Value shall be the mean of the closing bid and asked prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable, or;

 (iii) In the absence of an established market for the Common Stock, its Fair Market Value shall be determined in good faith by the
Administrator, or; 
 (iv) For purposes of the Enrollment Date of the first Offering Period under the Plan, the Fair Market Value shall be
the initial price to the public as set forth in the final prospectus deemed to be included within the registration statement on Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Common Stock (the
“Registration Statement”). 
 (p) “Offering Periods” means the periods of approximately twenty-four
(24) months during which an option granted pursuant to the Plan may be exercised, commencing on the first Trading Day on or after May 15 and November 15 of each year and terminating on the first Trading Day on or after the May 15
and November 15 Offering Period commencement date approximately twenty-four months later; provided, however, that the first Offering Period under the Plan shall commence with the first Trading Day on or after the date on which the Securities
and Exchange Commission declares the Company’s Registration Statement effective and ending on the first Trading Day on or after the earlier of (i) November 15, 2005 or (ii) twenty-seven (27) months from the beginning of the
first Offering Period; and provided, further, that the second Offering Period under the Plan shall commence on May 17, 2004. The duration and timing of Offering Periods may be changed pursuant to Section 4 of this Plan. 
 (q) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.

 (r) “Plan” means this 2004 Employee Stock Purchase Plan. 
 (s) “Purchase Period” means the approximately six (6) month period commencing on one Exercise Date and ending with the next
Exercise Date, except that the first Purchase Period of any Offering Period shall commence on the Enrollment Date and end with the next Exercise Date. 
 (t) “Purchase Price” means an amount equal to eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the Enrollment Date or on the Exercise Date, whichever is lower;
provided however, that the Purchase Price may be adjusted by the Administrator pursuant to Section 20. 
 (u)
“Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code. 
  

 3. 

 (v) “Trading Day” means a day on which the U.S. national stock exchanges and the Nasdaq
System are open for trading. 
 3. Eligibility. 
 (a) First Offering Period. Any individual who is an Employee immediately prior to the first Offering Period under the Plan shall be automatically enrolled in the first Offering Period. 
 (b) Subsequent Offering Periods. Any individual who is an Employee as of the Enrollment Date of any future Offering Period shall be eligible to
participate in such Offering Period, subject to the requirements of Section 5. 
 (c) Limitations. Any provisions of the Plan to
the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) to the extent that, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to
Section 424(d) of the Code) would own capital stock of the Company or any Parent or Subsidiary of the Company and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total combined voting power or
value of all classes of the capital stock of the Company or of any Parent or Subsidiary of the Company, or (ii) to the extent that his or her rights to purchase stock under all employee stock purchase plans (as defined in Section 423 of
the Code) of the Company or any Parent or Subsidiary of the Company accrues at a rate which exceeds twenty-five thousand dollars ($25,000) worth of stock (determined at the Fair Market Value of the stock at the time such option is granted) for each
calendar year in which such option is outstanding at any time. 
 4. Offering Periods. The Plan shall be implemented by consecutive,
overlapping Offering Periods with a new Offering Period commencing on the first Trading Day on or after May 15 and November 15 of each year, or on such other date as the Administrator shall determine, and continuing thereafter until
terminated in accordance with Section 20; provided, however, that the first Offering Period under the Plan shall commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the
Company’s Registration Statement effective and ending on the first Trading Day on or after the earlier of (i) November 15, 2005 or (ii) twenty-seven (27) months from the beginning of the first Offering Period; and provided,
further, that the second Offering Period under the Plan shall commence on May 17, 2004. The Administrator shall have the power to change the duration of Offering Periods (including the commencement dates thereof) with respect to future
offerings without stockholder approval if such change is announced prior to the scheduled beginning of the first Offering Period to be affected thereafter. 
 5. Participation. 
 (a) First Offering Period. An Employee who has become a participant in the
first Offering Period under the Plan pursuant to Section 3(a) shall be entitled to continue his or her participation in such Offering Period only if he or she submits to the Company’s payroll office (or its designee) a properly completed
subscription agreement authorizing payroll deductions in the form provided by the Administrator for such purpose (i) no earlier than the effective date of the filing of the Company’s Registration Statement on Form S-8 with respect to the
shares of Common Stock 
  

 4. 

 issuable under the Plan (the “Effective Date”) and (ii) no later than five (5) business days from the
Effective Date (the “Enrollment Window”). A participant’s failure to submit the subscription agreement during the Enrollment Window pursuant to this Section 5(a) shall result in the automatic termination of his or her
participation in the first Offering Period under the Plan. 
 (b) Subsequent Offering Periods. An Employee who is eligible to
participate in the Plan pursuant to Section 3(b) may become a participant by (i) submitting to the Company’s payroll office (or its designee), on or before a date prescribed by the Administrator prior to an applicable Enrollment Date,
a properly completed subscription agreement authorizing payroll deductions in the form provided by the Administrator for such purpose, or (ii) following an electronic or other enrollment procedure prescribed by the Administrator. 
 6. Payroll Deductions. 
 (a) At the
time a participant enrolls in the Plan pursuant to Section 5, he or she shall elect to have payroll deductions made on each payday during the Offering Period in an amount not exceeding 10% of the Compensation which he or she receives on each
such payday. 
 (b) Payroll deductions authorized by a participant shall commence on the first payday following the Enrollment Date and shall
end on the last payday in the Offering Period to which such authorization is applicable, unless sooner terminated by the participant as provided in Section 10; provided, however, that for the first Offering Period under the Plan, payroll
deductions shall commence on the first payday on or following the end of the Enrollment Window. 
 (c) All payroll deductions made for a
participant shall be credited to his or her account under the Plan and shall be withheld in whole percentages only. A participant may not make any additional payments into such account. 
 (d) A participant may discontinue his or her participation in the Plan as provided in Section 10, or may change the rate of his or her payroll
deductions during the Offering Period by (i) properly completing and submitting to the Company’s payroll office (or its designee), on or before a date prescribed by the Administrator prior to an applicable Exercise Date, a new subscription
agreement authorizing the change in payroll deduction rate in the form provided by the Administrator for such purpose, or (ii) following an electronic or other procedure prescribed by the Administrator; provided, however, that a participant may
only make one payroll deduction change during each Purchase Period. If a participant has not followed such procedures to change the rate of payroll deductions, the rate of his or her payroll deductions shall continue at the originally elected rate
throughout the Offering Period and future Offering Periods (unless terminated as provided in Section 10). The Administrator may, in its sole discretion, limit the nature and/or number of payroll deduction rate changes that may be made by
participants during any Offering Period. Any change in payroll deduction rate made pursuant to this Section 6(d) shall be effective as of the first full payroll period following five (5) business days after the date on which the change is
made by the participant (unless the Administrator, in its sole discretion, elects to process a given change in payroll deduction rate more quickly). 
  

 5. 

 (e) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the
Code and Section 3(c), a participant’s payroll deductions may be decreased to zero percent (0%) at any time during a Purchase Period. Payroll deductions shall recommence at the rate originally elected by the participant effective as of the
beginning of the first Purchase Period which is scheduled to end in the following calendar year, unless terminated by the participant as provided in Section 10. 
 (f) At the time the option is exercised, in whole or in part, or at the time some or all of the Company’s Common Stock issued under the Plan is disposed of, the participant must make adequate provision for the
Company’s federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the option or the disposition of the Common Stock. At any time, the Company may, but shall not be obligated to, withhold from the
participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to the sale or early
disposition of Common Stock by the Employee. 
 7. Grant of Option. On the Enrollment Date of each Offering Period, each Employee
participating in such Offering Period shall be granted an option to purchase on each Exercise Date during such Offering Period (at the applicable Purchase Price) up to a number of shares of Common Stock determined by dividing such participant’s
payroll deductions accumulated prior to such Exercise Date and retained in the participant’s account as of the Exercise Date by the applicable Purchase Price; provided that in no event shall a participant be permitted to purchase during each
Purchase Period more than 1,000 shares of Common Stock (subject to any adjustment pursuant to Section 19), and provided further that such purchase shall be subject to the limitations set forth in Sections 3(c) and 13. The Employee may accept
the grant of such option (i) with respect to the first Offering Period under the Plan, by submitting a properly completed subscription agreement in accordance with the requirements of Section 5(a) on or before the last day of the
Enrollment Window, and (ii) with respect to any future Offering Period under the Plan, by electing to participate in the Plan in accordance with the requirements of Section 5(b). The Administrator may, for future Offering Periods, increase
or decrease, in its absolute discretion, the maximum number of shares of Common Stock that a participant may purchase during each Purchase Period of such Offering Period. Exercise of the option shall occur as provided in Section 8, unless the
participant has withdrawn pursuant to Section 10. The option shall expire on the last day of the Offering Period. 
 8. Exercise of
Option. 
 (a) Unless a participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of shares
of Common Stock shall be exercised automatically on the Exercise Date, and the maximum number of full shares subject to option shall be purchased for such participant at the applicable Purchase Price with the accumulated payroll deductions in his or
her account. No fractional shares of Common Stock shall be purchased; any payroll deductions accumulated in a participant’s account which are not sufficient to purchase a full share shall be retained in the participant’s account for the
subsequent Purchase Period or Offering Period, subject to earlier withdrawal by the participant as provided in Section 10. Any other monies left over in a participant’s account after the Exercise Date shall be returned to the participant.
During a participant’s lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her. 
  

 6. 

 (b) Notwithstanding any contrary Plan provision, if the Administrator determines that, on a given
Exercise Date, the number of shares of Common Stock with respect to which options are to be exercised may exceed (i) the number of shares of Common Stock that were available for sale under the Plan on the Enrollment Date of the applicable
Offering Period, or (ii) the number of shares of Common Stock available for sale under the Plan on such Exercise Date, the Administrator may in its sole discretion (x) provide that the Company shall make a pro rata allocation of the shares
of Common Stock available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options
to purchase Common Stock on such Exercise Date, and continue all Offering Periods then in effect, or (y) provide that the Company shall make a pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or
Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and terminate any
or all Offering Periods then in effect pursuant to Section 20. The Company may make pro rata allocation of the shares of Common Stock available on the Enrollment Date of any applicable Offering Period pursuant to the preceding sentence,
notwithstanding any authorization of additional shares of Common Stock for issuance under the Plan by the Company’s shareholders subsequent to such Enrollment Date. 
 9. Delivery. As soon as administratively practicable after each Exercise Date on which a purchase of shares of Common Stock occurs, the Company shall arrange the delivery to each participant, as appropriate,
the shares purchased upon exercise of his or her option in a form determined by the Administrator (in its sole discretion) and pursuant to rules established by the Administrator. No participant shall have any voting, dividend, or other shareholder
rights with respect to shares of Common Stock subject to any option granted under the Plan until such shares have been purchased and delivered to the participant as provided in this Section 9. 
 10. Withdrawal. 
 (a) Under procedures
established by the Administrator, a participant may withdraw all but not less than all the payroll deductions credited to his or her account and not yet used to exercise his or her option under the Plan at any time by (i) submitting to the
Company’s payroll office (or its designee) a written notice of withdrawal in the form prescribed by the Administrator for such purpose, or (ii) following an electronic or other withdrawal procedure prescribed by the Administrator. All of
the participant’s payroll deductions credited to his or her account shall be paid to such participant as promptly as practicable after the effective date of his or her withdrawal and such participant’s option for the Offering Period shall
be automatically terminated, and no further payroll deductions for the purchase of shares shall be made for such Offering Period. If a participant withdraws from an Offering Period, payroll deductions shall not resume at the beginning of the
succeeding Offering Period unless the participant re-enrolls in the Plan in accordance with the provisions of Section 5. 
  

 7. 

 (b) A participant’s withdrawal from an Offering Period shall not have any effect upon his or her
eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the termination of the Offering Period from which the participant withdraws. 
 11. Termination of Employment. Upon a participant’s ceasing to be an Employee, for any reason, he or she shall be deemed to have elected to
withdraw from the Plan and the payroll deductions credited to such participant’s account during the Offering Period but not yet used to purchase shares of Common Stock under the Plan shall be returned to such participant or, in the case of his
or her death, to the person or persons entitled thereto under Section 15, and such participant’s option shall be automatically terminated. The preceding sentence notwithstanding, a participant who receives payment in lieu of notice of
termination of employment shall be treated as continuing to be an Employee for the participant’s customary number of hours per week of employment during the period in which the participant is subject to such payment in lieu of notice.

 12. Interest. No interest shall accrue on the payroll deductions of a participant in the Plan. 
 13. Stock. 
 (a) Subject to adjustment
upon changes in capitalization of the Company as provided in Section 19, the maximum number of shares of Common Stock which shall be made available for sale under the Plan shall be 100,000 shares of Common Stock plus an annual increase to be
added on the first day of the Company’s fiscal year beginning in fiscal year 2005, equal to the lesser of (i) 125,000 shares of Common Stock, (ii) 0.5% of the outstanding shares of Common Stock on such date or (iii) an amount
determined by the Board. 
 (b) Shares of Common Stock to be delivered to a participant under the Plan shall be registered in the name of the
participant or in the name of the participant and his or her spouse. 
 14. Administration. The Board or a committee of members of the
Board who shall be appointed from time to time by, and shall serve at the pleasure of, the Board, shall administer the Plan. The Administrator shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the
Plan, to determine eligibility, to adjudicate all disputed claims filed under the Plan and to establish such procedures that it deems necessary for administration of the Plan (including, without limitation, to adopt such procedures and sub-plans as
are necessary or appropriate to permit the participation in the Plan by employees who are foreign nationals or employed outside the United States). The Administrator, in its sole discretion and on such terms and conditions as it may provide, may
delegate to one or more individuals all or any part of its authority and powers under the Plan. Every finding, decision and determination made by the Administrator (or its designee) shall, to the full extent permitted by law, be final and binding
upon all parties. 
  

 8. 

 15. Designation of Beneficiary. 
 (a) A participant may designate a beneficiary who is to receive any shares of Common Stock and cash, if any, from the participant’s account under the
Plan in the event of such participant’s death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such participant of such shares and cash. In addition, a participant may designate a beneficiary who is to
receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to exercise of the option. If a participant is married and the designated beneficiary is not the spouse, spousal consent shall be
required for such designation to be effective. 
 (b) Such designation of beneficiary may be changed by the participant at any time. In the
event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant’s death, the Company shall deliver such shares and/or cash to the executor or administrator
of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or
relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 
 (c) All beneficiary designations under this Section 15 shall be made in such form and manner as the Administrator may prescribe from time to time. 
 16. Transferability. Neither payroll deductions credited to a participant’s account nor any rights with regard to the exercise of an option
or to receive shares of Common Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 15) by the participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw from an Offering Period in accordance with Section 10. 
 17. Use of Funds. All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and
the Company shall not be obligated to segregate such payroll deductions. Until shares of Common Stock are issued under the Plan (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company), a participant shall only have the rights of an unsecured creditor with respect to such shares. 
 18. Reports. Individual
accounts shall be maintained for each participant in the Plan. Statements of account shall be given to participating Employees at least annually, which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of
shares of Common Stock purchased and the remaining cash balance, if any. 
 19. Adjustments, Dissolution, Liquidation or Change in
Control. 
 (a) Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Common Stock, other
securities, or other property), recapitalization, stock split, 
  

 9. 

 reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of
Common Stock or other securities of the Company, or other change in the corporate structure of the Company affecting the Common Stock occurs, the Administrator, to prevent dilution or enlargement of the benefits or potential benefits intended to be
made available under the Plan, shall adjust the number and class of Common Stock which may be delivered under the Plan, the Purchase Price per share and the number of shares of Common Stock covered by each option under the Plan which has not yet
been exercised, and the numerical limits of Sections 7 and 13. 
 (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Offering Period then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Board. The New Exercise Date shall be before the date of the Company’s proposed dissolution or liquidation. The Board shall notify each participant in writing, at least ten
(10) business days prior to the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise
Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10. 
 (c) Change in
Control. In the event of a Change in Control, each outstanding option shall be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor
corporation refuses to assume or substitute for the option, any Purchase Periods then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”) and any Offering Periods then in progress shall end on the New
Exercise Date. The New Exercise Date shall be before the date of the Company’s proposed Change in Control. The Board shall notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the
Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from
the Offering Period as provided in Section 10. 
 20. Amendment or Termination. 
 (a) The Administrator may at any time and for any reason terminate or amend the Plan. Except as provided in Section 19, no such termination can
affect options previously granted under the Plan, provided that an Offering Period may be terminated by the Administrator on any Exercise Date if the Administrator determines that the termination or suspension of the Plan is in the best interests of
the Company and its stockholders. Except as provided in Section 19 and this Section 20, no amendment may make any change in any option theretofore granted which adversely affects the rights of any participant. To the extent necessary to
comply with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall obtain stockholder approval in such a manner and to such a degree as required.

 (b) Without stockholder consent and without regard to whether any participant rights may be considered to have been “adversely
affected,” the Administrator shall be entitled to 
  

 10. 

 change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company’s
processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly
correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Administrator determines in its sole discretion advisable which are consistent with the Plan. 
 (c) In the event the Administrator determines that the ongoing operation of the Plan may result in unfavorable financial accounting consequences, the
Board may, in its discretion and, to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited to: 
 (i) altering the Purchase Price for any Offering Period including an Offering Period underway at the time of the change in Purchase Price; 
 (ii) shortening any Offering Period so that Offering Period ends on a new Exercise Date, including an Offering Period underway at the time of the Board
action; and 
 (iii) allocating shares. 
 Such modifications or amendments shall not require stockholder approval or the consent of any Plan participants. 
 21. Notices. All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof. 
 22. Conditions Upon Issuance of Shares. Shares of Common Stock shall
not be issued with respect to an option under the Plan unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without
limitation, the Securities Act of 1933, as amended, including the rules and regulations promulgated thereunder, the Exchange Act and the requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance. 
 As a condition to the exercise of an option, the Company may require
the person exercising such option to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for
the Company, such a representation is required by any of the aforementioned applicable provisions of law. 
 23. Term of Plan.
Contingent on its approval by the stockholders of the Company, the Plan shall become effective following its adoption by the Board and on the day immediately preceding the date of the Company’s firmly underwritten initial public offering. It
shall continue in effect until terminated under Section 20. 
  

 11. 

 24. Automatic Transfer to Low Price Offering Period. To the extent permitted by any applicable
laws, regulations, or stock exchange rules if the Fair Market Value of the Common Stock on any Exercise Date in an Offering Period is lower than the Fair Market Value of the Common Stock on the Enrollment Date of such Offering Period, then all
participants in such Offering Period shall be automatically withdrawn from such Offering Period immediately after the exercise of their option on such Exercise Date and automatically re-enrolled in the immediately following Offering Period.

  

 12.Employment Agreement

 Exhibit 10.1 
 October 1, 2006 
 Mr. William Davis 
 210 Acacia Terrace 
 Celebration, FL 34747 
 Re: Employment Agreement 
 Dear Bill, 
 You and Universal City
Development Partners, Ltd. d/b/a “Universal Orlando” (hereinafter referred to as “UO” or the “Company”) have agreed as follows: 
  

	1.	Definitions: 

 UO includes any subsidiary, or
affiliated company or any divisions thereof now existing or formed at any time after the date of this Agreement; any business entity which may merge into UO or with which UO may be merged or consolidated; any business entity which may acquire all or
a substantial portion of the assets or good will of UO; or any business entity which may result from a division or other reorganization of UO. 
  

	2.	Employment and Services: 

  

	 	a)	UO has employed you and you have agreed to perform your exclusive services for UO upon the terms and conditions hereinafter set forth, and the UO employee policies and procedures as
communicated to you from time to time. 

  

	 	b)	You will perform such services as requested from time to time by the Chairman/CEO, Universal Parks & Resorts (“UPR”), or his duly authorized representative. Your
employment as President & Chief Operating Officer will commence on December 5, 2006, it being understood that the Chairman/CEO, UPR or his duly authorized officers may assign you to render your services in different occupational areas
within Universal Orlando, in their sole discretion, provided, however, that all such services will be consistent and comparable to your current position. Notwithstanding the foregoing, you shall begin working in a transitional role with UO’s
current President and CEO and other member’s of UO’s senior management team as of October 2, 2006. 

	3.	Results and Proceeds: 

 As your employer, UO shall
own all rights in and to the results and proceeds connected with or arising out of, directly and indirectly, your services hereunder. 
  

	4.	Term; Renewal: 

  

	 	a)	The term of this Agreement shall run two (2) years, commencing on October 2, 2006 and continuing until October 1, 2008. 

  

	 	b)	Option: UO shall have the irrevocable option to renew the term of this Agreement for a period of twenty four (24) months, commencing on October 2, 2008 and
continuing until October 1, 2010. 

  

	 	c)	In the event the Company exercises its right to renew your employment under the option provided above, you shall be notified in writing not less than sixty (60) days prior to
the expiration date of the then current term. In the event the Company does not elect to continue your employment at the expiration of any term, no special severance consideration is provided. Rather, standard Company practice (if any) shall apply.

  

	 	d)	You agree and acknowledge that UO has no obligation to renew this Agreement or to continue your employment after expiration of the term hereunder, and you expressly acknowledge
that no promises or understandings to the contrary have been made or reached. 

  

	5.	Compensation: 

  

	 	a)	Basic Salary: For all your services rendered under this Agreement, UO shall pay you a salary at an annual rate of no less than $450,000, or at such higher salary as may be
determined by your performance review and the Executive Vice President, Human Resources, Legal & Business Affairs, UPR. Such higher salary shall subsequently be deemed the annual rate, commencing on such date as the Executive Vice
President, Human Resources, Legal & Business Affairs, UPR may determine, for purposes of this Agreement. 

  

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	 	b)	Such salary shall be payable in equal installments on UO’s regular paydays during the term, subject to the usual and required employee payroll deductions and withholdings. UO
is not obligated to actually utilize your services, and in the event it elects not to do so, you shall continue to be compensated under the terms and conditions of this Agreement unless mutually agreed upon. 

  

	6.	Place and Condition of Employment: 

 Your principal
place of employment, unless otherwise specified, is the Orlando office of Universal Orlando. However, it is understood that you may be required to travel to other locations on behalf of Universal Orlando. 
  

	7.	Vacation: 

 You shall be entitled to vacation with
pay under the UO vacation plan. However, as a material inducement to this agreement, you will be eligible to receive fifteen (15) days of vacation in your first year of employment and each year thereafter up to your 15th year whereafter your vacation allotment increases and caps out at a maximum of twenty (20) days per year. Any unused
vacation in your first year of employment may not be carried over to the following year. In subsequent years, no more than ten (10) days may be carried over at any one time. 
  

	8.	Termination: 

 UO may terminate your services as
follows: 
  

	 	a)	The Company may terminate this Agreement for cause at any time without advance notice. “Cause” will include, but not be limited to: 

  

	 	(i)	your material failure to perform your duties; 

  

	 	(ii)	your material failure to comply with Company policies, including, without limitation those set forth in the Universal Orlando Code of Conduct, the Employee Confidentiality and
Non-Disclosure Agreement, the Universal Orlando E-Mail Policy, the Universal Orlando Internet and Computer On-Line Services Policy and the Universal Orlando Discrimination and Sexual Harassment Policy, or 

  

	 	b)	In the event you have suffered a permanent and total disability, which prevents your performance of your full-time duties under this Agreement, but in no case, shall such right be
exercised until six (6) months from the date of the commencement of such disablement. 

  

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	9.	Benefits: 

 During the term hereof, and so long as
you are not in breach of this Agreement: 
  

	 	a)	UO shall reimburse you for your reasonable and necessary business expenses in accordance with its then prevailing policy (which shall include appropriate itemization and
substantiation of expenses incurred). 

  

	 	b)	You shall be entitled to participate in the group insurance benefit plans. 

  

	 	c)	You shall be entitled to participate in the UO 401(k) retirement program upon terms and conditions as developed by UO. 

  

	 	d)	You shall be entitled to participate in the UO Executive Incentive Plan (the “Incentive Plan”) in accordance with the terms of the Incentive Plan, with a potential payout
of $150,000 per fiscal year. However, no specific amount is guaranteed. In the event UO has terminated this Agreement in accordance with Section 8(a) above, you will have no right to receive compensation under the Incentive Plan for any portion
of the year in which your termination occurred. 

  

	 	e)	You shall be eligible to participate in the Company sponsored “Highly Compensated Employees” supplemental benefit plan to our 401(k) plan. 

 You further expressly agree and acknowledge that after expiration of the term hereunder you are entitled to no additional benefits not expressly set forth
herein, except as specifically provided under the benefit plan referred to herein and those benefit plans in which you may subsequently become a participant, and subject in all cases to the term and conditions of each such plan. 
  

	10.	Assignment of Agreement: 

 UO may assign this
Agreement to any affiliate or successor in interest without your prior consent. This Agreement is a personal services agreement and may not be assigned by you. 
  

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	11.	Compliance with Policies: 

 Incorporated herein and
made part of this Agreement are the Universal Orlando Code of Conduct and the Company’s Discrimination and Sexual Harassment Policy. Compliance with such Policies and Code of Conduct, and any amendments thereto which you receive, such
amendments to be consistent with the tenor of the current Policies and Codes of Conduct and not in violation of public policy, are conditions to your continued employment. Any material violation thereof shall constitute a breach of this Agreement,
and shall provide for termination as set forth in Section 8 above. 
 In addition to such Policies and Code of Conduct, also incorporated
herein and made a part of this Agreement is the Employee Confidentiality and Non-Disclosure Agreement. In view of the fact that your position of service to UO is a unique one of trust and confidence and, as a condition to your employment by UO under
this Agreement, you agree to sign and comply with each of the provisions of such Employee Confidentiality and Non-Disclosure Agreement. 
  

	12.	Termination of All Previous Agreements: 

 All prior
personal employment service agreements (whether written, oral or implied) between us, if any, are terminated as of the commencement of the term of this Agreement. 
  

	13.	Choice of Laws: 

 This Agreement shall be covered by
and construed and enforced in accordance with and subject to the laws of the State of Florida. Any legal proceeding brought by either party for enforcing any right or obligation under this Agreement, or arising under any matter pertaining to this
Agreement or the services to be rendered hereunder, shall be submitted without jury before any court of competent jurisdiction in the State of Florida. The parties hereto expressly waive trial by jury. 
  

	14.	Entire Agreement; Modification; Severability: 

 This
Agreement sets forth the entire understanding between us; there are no terms, conditions, representations, warranties or covenants other than those contained herein. No term or provision of this Agreement may be amended, waived, released, discharged
or modified in any respect except in writing, signed by the appropriate party(ies). No waiver of any breach or default shall constitute a waiver of any other breach or default, whether of the same or any other term or condition. 
  

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 The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement. 
 Very truly yours, 
 UNIVERSAL ORLANDO 
  

	
	 /s/ John R. Sprouls

	Executive Vice President
	Human Resources, Legal & Business Affairs, UPR

 JRS:jal 
 AGREED: 
  

							
	 /s/ William A. Davis
	 		 	 10/30/06
	 	
	William A. Davis	 		 	Date	 	

  

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