Document:

Universal Orlando 2010 Annual Incentive Plan

 EXHIBIT 10.2 
 UNIVERSAL 
 OrlandoSM 

RESORT 

Variable Pay Plan 
 Documentation 
  

 
 Annual
Incentive Plan 
 Effective January 2010-December 2010 

 Annual Incentive Plan – Effective 1/10-12/10 

 

 Plan Name: 
 Annual Incentive Plan (AIP) 
 Plan Inception Date: 

Unknown 
 Plan Period: 

January 2010 – December 2010 
 Plan
Review Date: 
 2/2010 
 Plan
Purpose: 
 To provide incentive and reward to Universal Orlando (UO) executives who contribute to UO’s success. 

The Plan is specifically designed to support UO’s business needs and fit its culture. The Plan directly supports the long-term objectives of UO and,
when business goals are met or exceeded, will pay competitive incentive compensation levels. 
 Plan Objectives: 

 

	 	•	 	 Provide incentive to executives to perform at superior levels in support of the Company’s financial and strategic goals.

  

	 	•	 	 Encourage a team approach throughout UO. 

  

	 	•	 	 Reward participants for their contribution to the Company’s success. 

 

	 	•	 	 Enable UO to attract and retain outstanding team members. 

 

	 	•	 	 Ensure that UO operating plans are understood and implemented throughout each operating unit and division. 

 

	 	•	 	 Provide a format and systematic approach to be utilized for determining individual awards under the Plan. 

 

	 	•	 	 Ensure that individuals are accountable for specific objectives that impact the Company, their division, and department. 

Eligibility: 
 Designated UO managers in
key decision-making positions are eligible to participate in the AIP. The Plan is designed for, but not limited to, Director level and above positions. 
 Plan Funding: 
 The Plan is specifically applicable to incumbents in Director level and
above jobs. 
 Performance Measures: 
 Either before the plan year begins or early in the plan year, participants and their managers set individual objectives that directly support the participant’s role in attaining Company objectives.
These objectives should include activities and projects that are distinct from on-going job responsibilities. They should reflect areas in which the individual can impact the company, division and department goals. 

Individual objectives should be specific and quantitative to the extent feasible. The participants and their managers should agree on
weights for each objective. Most Objectives will focus on: 
  

					
	Operating Profit	  	Guest Service Ratings	  	
	Per Caps	  	Asset & Inventory Control	  	
	Overhead Management	  	Cost Containment	  	
	Quality Measures	  	Labor Scheduling	  	
	People Development	  	Product/non-labor cost	  	

  
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 Annual Incentive Plan – Effective 1/10-12/10 

 

 Throughout the plan period the participant and immediate management, including input
from Operational and Functional management, should hold periodic progress reviews to evaluate progress toward achievement of objectives. 
 The Plan operates on four principles: 
 The Company must meet a minimum Operating
Profit performance level for awards to be made. A level of Operating Profit is established, which must be achieved before participants in the Plan earn an award. This minimum acceptable performance is annually set at meaningful levels. 

Each participant’s individual performance is critical to the attainment of Company objectives. It is the combined accomplishments of
all team members that enable UO to achieve aggressive objectives. Participants will be held accountable for the achievement of their individual objectives. 
 Each AIP participant has a target incentive award based on the participant’s job and level within the organization. Target awards will provide competitive incentive compensation upon the achievement
of set objectives. The target award levels are evaluated periodically against competitive data to ensure they meet the Company’s compensation objectives. AIP target awards will be communicated to participants by their managers. In general
target will be based on a percentage of salary following the schedule below, this schedule is not inclusive of all scenarios and individual participant’s may have a different target than delivered by the schedule (as determined by the Company):

  

									
	Salary Plan	  	Salary
Grade	  	Level	  	Target %	 
	 1FL
	  	20	  	Director	  	 	15	% 
	 1FL
	  	21	  	Director	  	 	15	% 
	 1FL
	  	22	  	Director	  	 	15	% 
	 1FL
	  	23	  	Vice President	  	 	22	% 
	 1FL
	  	24	  	Vice President	  	 	25	% 
	 1FL
	  	25	  	Vice President	  	 	30	% 
	 1FL
	  	26	  	Vice President	  	 	30	% 
	 1FL
	  	27	  	Vice President	  	 	30	% 

 Each year, the AIP’s
financial performance objectives will change to match UO’s business plans. The Plan is designed to provide superior rewards for superior performance consistent with achieving those important business objectives. 

Plan Administration: 
 The Plan will be
administered by the Compensation department. They will be responsible for the following: 
  

	 	•	 	 Verifying that objectives are established between the Plan Participant and their manager at the beginning of the plan period

  

	 	•	 	 Maintaining Company-wide documentation of the Plan Participant’s objectives 

 

	 	•	 	 Recording results of the Plan Participant’s achievement of objectives at the conclusion of the plan period 

 

	 	•	 	 Maintaining Company-wide documentation of the Plan Participant’s achievement of objectives 

 

	 	•	 	 Establishing suggested plan payouts based on Plan Participant’s performance against objectives to the Participant’s manager

  

	 	•	 	 Presenting Company-wide recommended plan payouts to Senior Management for approval 

 

	 	•	 	 Ensuring payments are paid pursuant to the approval of Senior Management 

 Interpretations, determinations, and actions regarding plan administration will be made by the Executive Vice President, UPR/CEO UO or the President/COO UO. 

  
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 Annual Incentive Plan – Effective 1/10-12/10 

 

 Plan Payment: 
 At the end of the review period, the manager assigns an Overall Performance and Percentage Rating based upon achievement against all objectives. 
 The AIP award is then forwarded for approval to the next level of management. The UO Compensation Department will collect the recommendations and present to Senior Management for final approval.

 AIP incentive awards will be paid as soon as practicable after the plan year’s financial results are approved and available. 

Plan Audits: 
 Plan audits will be
conducted on an as needed basis by the Internal Audit department and/or external auditors. 
 Special Considerations: 

Merit Reviews 
 This Plan has no affect on the merit process. Performance against this Plan may be evaluated in the annual performance appraisal; however, any payment made under this Plan will not affect the merit
increase percentage. 
 New Hires: 
 A team member hired during the plan year will participate in the Plan on a pro-rated basis determined by the number of full months of employment during each fiscal month of the plan year. However, team
members hired during the fourth quarter of the plan year will not participate in the Plan. 
 Transfers:

 An existing team member promoted or transferred to an eligible job from an ineligible job will participate in the Plan
on a pro-rated basis determined by the number of full months in the Plan during each fiscal month of the plan year. However, team members promoted or transferred during the fourth quarter of the plan year will not participate in the Plan.

 A participant transferred to an ineligible job ceases to participate in the Plan on the date of transfer to the ineligible
job, but will still be a Plan Participant for the period they were covered under the Plan. 
 A participant promoted to a higher
level eligible job or demoted to a lower level eligible job will participate in the Plan on a pro-rated basis determined by the number of full months in the Plan at each level during the plan year. 

Termination: 
 A participant is not eligible for incentive pay in the event of termination for cause or by team member resignation at any time during the plan year. A pro-rated incentive will be paid if a participant is
laid off, dies, becomes disabled or retires during the plan year based on the date of the action. 
 A TEAM MEMBER MUST BE
DESIGNATED AS AN ACTIVE EMPLOYEE AT THE DATE OF PLAN PAYOUT IN ORDER TO RECEIVE AN AWARD, UNLESS THEY WERE LAID OFF, ARE DECEASED, HAVE BECOME DISABLED, OR RETIRED. (Team Members employed in the state of Illinois must be employed on the last date of
the plan year in order to receive an award). 
 Benefit Hours 

All benefit hour (i.e. Vacation, Personal Holiday, Paid Time Off) payments are made at the team member’s base rate. Payments under
this Plan will not impact the rate paid for these hours. 

  
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 Annual Incentive Plan – Effective 1/10-12/10 

 

 Life Insurance 

Life insurance is based upon the “basic annual earnings”. Commissions, overtime pay, bonuses, and other
compensation not received as salary is not included in “basic annual earnings”. Any payments made under this Plan would not be included in “basic annual earnings”. 

Disability Benefits 

Disability benefits are based upon the average of the gross amount paid to a team member over a six-month period. Bonuses,
overtime pay and earnings for more than 40 hours per weeks are not included. Any payments made under this Plan would not be included in this average. 
 401(k)/HCE Compensation 
 Incentive payments will be
included in the definition of 401(k)/HCE compensation. 
 Taxes 

Payments made under this Plan are subject to FICA, FUTA, and OASDI taxes and will be withheld at the time of payout. In
the event this bonus is being deferred, pursuant to a bonafide plan, these taxes will be deducted from the payout and the remaining amount will be deferred pursuant to the Plan. 

The Company reserves the right to revise established payouts for incentive purposes (up or down) after the Plan period has begun. The
Company also reserves the right to withhold plan payments for behavior deemed unethical or found to be inappropriate. Discussion between or among plan participants or any other team members regarding the actual payment of awards will be subject to
loss of such payments and may result in termination. While it is the intent of the Company to continue the Plan, the Company reserves the right to change or discontinue the Plan at its sole discretion at any time. Participation in the Plan does not
constitute a contract of employment with Universal Orlando. 
 Plan Approvals: 

 

											
		 	Divisional Executive:	 	
 

	 		 	 2-25-10
	 	
		 		 	John Sprouls, EVP, UPR/CEO	 		 	Date	 	
						
		 	Compensation Dept:	 	
 

	 		 	 2-25-10
	 	
		 		 	Greg Kelsoe, Sr. Dir UPR/UO	 		 	Date	 	
		 		 	Compensation & Benefits	 		 		 	

 Additional Information: 
 For more information and examples, please see: 
  

	 	•	 	 Instructions for Individual Objective Setting and Assessment Process 

 

	 	•	 	 Frequently Asked Questions – Annual Incentive Plan 

 

	 	•	 	 Executive Performance Appraisal 

  
 Page 5 of 5Employment Agreement

 Exhibit 10.3 
 May 10, 2011 
 Alice Norsworthy 
 9163 Ridge Pine Trail 
 Orlando, FL 32819 
 Re: Employment Agreement 
 Dear Alice, 

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 division 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 goodwill 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 and Chief Executive Officer, Universal Parks and Resorts (“UPR”), or his duly
authorized representatives. Your employment as Executive Vice President, Marketing and Sales pursuant to this Agreement will commence as of the date set forth above, it being understood that the Chairman and Chief Executive Officer, UPR, or his duly
authorized officers may assign you to render your services in different occupational areas within UO, in their sole discretion. 

	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 commence as of the date set forth above and continue until September 1, 2014. 

 

	 	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 September 2,
2014 and continuing until September 1, 2016. 

  

	 	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 one hundred eighty
(180) 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 $432,681.60, 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. 

  

	 	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 otherwise mutually agreed.

  
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	6.	Covenants: 

  

	 	a)	You will not at any time during your employment by the Company or the period of payment pursuant to Section 5 above be or become (i) interested or engaged in
any manner, directly or indirectly, either alone or with any person, firm or corporation now existing or hereafter created, in any business which is or may be competitive with the business of the Company and its affiliates, or (ii) directly or
indirectly a stockholder or officer, director, agent, consultant or employee of, or in any manner associated with, or aid or abet, or give information or financial assistance to, any such business. The provisions of this paragraph will not be deemed
to prohibit your purchase or ownership, as a passive investment, of not more than five percent (5%) of the outstanding securities of any company whose securities are publicly traded. 

 

	 	b)	You will not during (i) the period of your employment by the Company, (ii) the period of payment pursuant to Section 5 above, or (iii) the period
ending one (1) year after the later of the periods described in the previous clauses (i) or (ii) induce or attempt to induce any employees, consultants, contractors or representatives of the Company (or those of any of its affiliates)
to stop working for, contracting with or representing the Company or any of its affiliates or to work for, contract with or represent any of the Company’s (or its affiliates’) competitors. 

 

	7.	Place and Condition of Employment: 

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

 

	8.	Vacation: 

 You shall be
entitled to vacation with pay under the UO vacation plan. Any unused vacation greater than forty (40) hours may not be “carried over” into another year without the approval of your Department Head and the Human Resources Department.

  

	9.	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; or 

  

	 	(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. 

  
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	 	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. 

  

	10.	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, in accordance with their terms. 

 

	 	c)	You shall be entitled to participate in the UO 401(k) retirement program, in accordance with its terms. 

 

	 	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
target payout of $150,000.00 per fiscal year. However, no specific amount is guaranteed. 

  

	 	e)	In the event that UO or its affiliates adopt a Long-Term Growth Plan, or other long-term incentive plan in which UO executive officers generally are eligible to
participate (the “Long Term Incentive Plan”), you shall be entitled to participate in the Long Term Incentive Plan in accordance with its terms. In the event UO has terminated this Agreement in accordance with Section 9(a) above, or
if UO notifies you that your services are no longer required under this Agreement, any participation in, and any rights and grants under, the Incentive Plan, the Long Term Incentive Plan, the Variable Deferred Compensation Plan and any other
incentive plans will terminate immediately and no payment for any period of participation will be due unless otherwise agreed to in writing. 

  

	 	f)	You shall be eligible to participate in the Company sponsored Variable Deferred Compensation Plan, in accordance with its terms. 

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 plans referred to herein and those benefit plans in which you may subsequently become a participant, and subject in all cases to the terms and conditions of each such
plan. 

  
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	11.	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. 
  

	12.	Compliance with Policies: 

Incorporated herein and made part of this Agreement are the Universal Orlando Code of Conduct, 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 (collectively, the “Policies”). Compliance with such Policies, and any amendments thereto which you
receive, such amendments to be consistent with the tenor of the current Policies 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 is
grounds for termination as set forth in Section 9(a) above. 
 In addition to such Policies, 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. 
  

	13.	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. 

 

	14.	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 to enforce 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. 

 

	15.	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. 

  
 Page 5 of 6

 Any negotiated changes made regarding payments under this Agreement may result in a twenty
percent (20%) excise tax and additional penalties under the Internal Revenue Code. The Company makes no representations regarding income tax treatment for you, and you are solely responsible for any and all taxes or tax penalties arising from
any negotiated change in payments under this Agreement. You are urged to consult with your own tax adviser regarding taxation of separation benefits. 
 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 
 John R.
Sprouls 
 Chief Executive Officer, Universal Orlando, and 
 Executive Vice President 
 Human Resources, Legal & Business Affairs, UPR 

JRS:jal 
  

					
	AGREED:	 		 	
			
	/s/ Alice Norsworthy	 		 	May 11, 2011
	Alice Norsworthy	 		 	Date

  
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