Document:

Common Stock Purchase Agreement

 Exhibit 10.14H 
 JULY 22, 2008 
 TERCICA, INC. 
 IPSEN, S.A. 
 and 
 SURAYPHARM 
  
  
 COMMON STOCK PURCHASE
AGREEMENT 
  
  

 CONTENTS 
  

					
	 	  	 	  	PAGE
	 CLAUSE
	  		  	
			
	 ARTICLE 1
	  	DEFINITIONS	  	1
	 ARTICLE 2
	  	PURCHASE AND SALE OF SHARES	  	6
	 ARTICLE 3
	  	REPRESENTATIONS AND WARRANTIES OF TERCICA	  	7
	 ARTICLE 4
	  	REPRESENTATIONS AND WARRANTIES OF IPSEN	  	13
	 ARTICLE 5
	  	COVENANTS	  	15
	 ARTICLE 6
	  	CONDITIONS TO CLOSING	  	16
	 ARTICLE 7
	  	MISCELLANEOUS	  	18
		
	SCHEDULES	  	

 Disclosure Schedule 

 THIS COMMON STOCK PURCHASE AGREEMENT (the Agreement) is made as of July 22, 2008, 

BETWEEN: 
  

	(1)	TERCICA, INC., a corporation organized under the laws of the State of Delaware, with its principal offices at 2000 Sierra Point Parkway, Suite 400, Brisbane, California 94005
(Tercica); 

  

	(2)	IPSEN, S.A., a société anonyme organized under the laws of France with its registered address at 42, rue du Docteur Blanche, 75016 Paris, France
(Ipsen); and 

  

	(3)	solely for the purposes of Sections 1.1, 1.2, 4.3 and 7 hereof, SURAYPHARM, a Société par Actions Simplifiée organized under the laws of France
with its registered address at 42, rue du Docteur Blanche, 75016 Paris, France (Suraypharm). 

 IN CONSIDERATION of the
mutual covenants contained in this Agreement, the parties hereto agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 1.1 In this Agreement, the following
words and expressions have the following meaning: 
  

	(a)	Affiliate means, in respect of any Person, any other Person that is directly or indirectly controlling, controlled by or under common control with such Person or any
of its Subsidiaries, and the term “control” (including the terms “controlled by” and “under common control with”) means having, directly or indirectly, the power to direct or cause the direction of the management and
policies of a Person, whether through ownership of voting securities or by contract or otherwise. 

  

	(b)	Affiliation Agreement means that certain Affiliation Agreement, dated as of October 13, 2006, by and among Tercica, Ipsen and Suraypharm.

  

	(c)	Business Day means a day, other than Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by Law to close.

  

	(d)	Closing shall have the meaning ascribed to it in Section 2.2. 

  

	(e)	Closing Bid Price means the closing consolidated bid price of the Common Stock as reported by NASDAQ’s Market Intelligence Desk as of 4:00 P.M. Eastern Time on,
as applicable, (i) the trading date immediately prior to the Execution Date if this Agreement is executed prior to 4:00 P.M. Eastern Time on the Execution Date or (ii) the Execution Date if this Agreement is executed on or after 4:00 P.M.
Eastern Time on the Execution Date. 

  

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	(f)	Closing Date means the date on which the Closing occurs. 

  

	(g)	Common Stock means Tercica’s common stock, par value $0.001 per share. 

  

	(h)	Convertible Notes means: (x) that certain First Senior Convertible Promissory Note issued to Ipsen and dated October 13, 2006, as the same may be amended
from time to time; (y) that certain Second Senior Convertible Promissory Note issued to Ipsen and dated September 17, 2007, as the same may be amended from time to time; and (z) that certain Third Senior Convertible Promissory Note
issued to Ipsen and dated September 17, 2007, as the same may be amended from time to time. 

  

	(i)	Disclosure Schedule means that certain disclosure schedule delivered by Tercica to Ipsen concurrently herewith and identified as the “Disclosure Schedule.”

  

	(j)	Exchange Act means the Securities Exchange Act of 1934, as amended. 

  

	(k)	Execution Date means July 22, 2008. 

  

	(l)	GAAP means United States generally accepted accounting principles. 

  

	(m)	Genentech means Genentech, Inc., a corporation organized under the laws of the State of Delaware. 

  

	(n)	Genentech Purchase Agreement means that certain Common Stock Purchase Agreement, dated as of July 6, 2007, by and between Tercica and Genentech, as the same may
be amended from time to time. 

  

	(o)	Governmental Entities means any foreign or United States federal, state, county, local municipal or other governmental, regulatory or administrative authority, agency,
commission or other instrumentality, any court, tribunal or arbitral body with competent jurisdiction, or any national securities exchange or automated quotation service. 

  

	(p)	HSR Act means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the regulations and rules issued pursuant to that Act.

  

	(q)	 Intellectual Property Rights means all of the rights arising from or in respect of the following, whether protected, created or arising under the Laws
of the United States or any foreign jurisdiction: (A) (i) any valid and enforceable letters patent granted by, or a patent application filed with any applicable supranational, national, federal, state or local regulatory agency,
department, bureau or other governmental entity of any country or jurisdiction worldwide that is charged with reviewing and/or issuing patents, including, without limitation, any extension, registration, 

  

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confirmation, reissue, continuation, division, continuation-in-part, re-examination, supplementary protection certificate or renewal thereof, or any foreign
equivalent of any of the foregoing and (ii) any certificates of invention for a U.S. letters patent, or any foreign equivalent thereof (collectively, Patents); (B) trademarks, service marks, trade names (whether registered or
unregistered), service names, industrial designs, brand names, brand marks, trade dress rights, internet domain names, identifying symbols, logos, emblems, signs or insignia, and including all goodwill associated with the foregoing,
(C) copyrights, whether registered or unregistered (including copyrights in computer software programs), mask work rights and registrations and applications therefor (collectively, Copyrights); (D) confidential and
proprietary information, or non-public processes, designs, specifications, technology, know-how, techniques, formulas, inventions, concepts, trade secrets, discoveries, ideas and technical data and information, in each case excluding any rights in
respect of any of the foregoing that comprise or are protected by Copyrights or Patents (collectively, Trade Secrets); and (E) all applications, registrations and permits related to any of the foregoing clauses (A) through
(D). 

  

	(r)	Key Employee shall have the meaning ascribed to it in Section 3.9(c) of this Agreement. 

  

	(s)	Knowledge means, with respect to a Person, the actual knowledge of any of its executive officers. 

  

	(t)	Law means any judgment, order, statute, law (including common law), ordinance, rule, permit or regulation applicable to a Person or its business, properties or assets.

  

	(u)	 Material Adverse Effect, with respect to a Person, means: (i) a material adverse effect on the financial condition, properties, business or
results of operations of such Person and its Subsidiaries, taken as a whole or (ii) a material adverse effect on the ability of such Person to perform its material obligations under this Agreement; provided that none of the following
shall be deemed either alone or in combination to constitute, and none of the following shall be taken into account in determining whether there has been or would be, a Material Adverse Effect on any Person: (a) any adverse effect resulting
from or arising out of general economic conditions to the extent that such conditions do not disproportionately affect such Person and its Subsidiaries, taken as a whole, (b) any adverse effect resulting from or arising out of general
conditions in the industries in which such Person and its Subsidiaries operate to the extent that such conditions do not disproportionately affect such Person and its Subsidiaries, taken as a whole, (c) any adverse effect resulting from or
arising out of any natural disaster or any acts of terrorism, sabotage, military action or war or any escalation or worsening thereof to the extent they do not disproportionately affect such Person and its Subsidiaries, taken as a whole,
(d) any adverse change in reported financial results to the extent such change results from or arises out of changes (after the date of this Agreement) in GAAP or applicable Laws, (e) a reduction in market price of such Person’s

  

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common stock on the stock markets on which it trades to the extent such reduction is not related to factors that individually or in the aggregate would
reasonably be expected to have a Material Adverse Effect, or (f) any adverse effect resulting from or arising out of the failure of such Person to achieve projected financial results except to the extent that such failure is related to
operational issues or other factors that individually or in the aggregate would reasonably be expected to have a Material Adverse Effect. 

  

	(v)	Order shall have the meaning ascribed to it in Section 6.1(d) of this Agreement. 

  

	(w)	Per Share Price means the Closing Bid Price. 

  

	(x)	Person means any individual or any corporation, limited liability company, partnership, trust, association or other entity of any kind. 

  

	(y)	Purchase Price means the dollar amount obtained by multiplying the Shares by the Per Share Price. 

  

	(z)	SEC means the United States Securities Exchange Commission. 

  

	(aa)	Second Genentech Closing shall have the meaning ascribed to the term “Second Option Closing” in Section 2.2(b)(i) of the Genentech Purchase Agreement.

  

	(bb)	Second Genentech Closing Date shall mean July 11, 2008. 

  

	(cc)	Securities Act means the Securities Act of 1933, as amended. 

  

	(dd)	SEC Website means the website maintained by the SEC at http://www.sec.gov. 

  

	(ee)	Shares shall mean four hundred ten thousand eight hundred thirty-one (410,831) shares of Common Stock. 

  

	(ff)	Subsidiary means any corporation or other organization, whether incorporated or unincorporated, of which (i) fifty percent (50%) or more of the securities
(or other interests having by their terms ordinary voting power to elect a majority of the board of directors or equivalent governing body of such corporation or other organization) is directly or indirectly owned or controlled by the relevant
Person or (ii) the relevant Person (or any other subsidiary of the relevant Person) is a general partner. 

  

	(gg)	Tercica Balance Sheet means the balance sheet of Tercica contained in the Tercica SEC Report for the quarter ended March 31, 2008. 

  

	(hh)	Tercica Financials means each of the financial statements (including, in each case, any related notes thereto) contained in the Tercica SEC Reports.

  

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	(ii)	Tercica SEC Reports means Tercica’s most recent annual report on Form 10-K and all reports filed by Tercica pursuant to Section 13(a) or Section 15(d)
of the Exchange Act subsequent to the filing of Tercica’s most recent annual report on Form 10-K. 

  

	(jj)	Third Party means any other Person other than Tercica, Suraypharm or Ipsen. 

  

	(kk)	Warrant means that certain Warrant to purchase Common Stock issued to Ipsen and dated October 13, 2006. 

  

	1.2	Interpretation and Construction. In this Agreement: 

  

	(a)	the definitions of terms herein shall apply equally to the singular and plural forms of the terms defined; 

  

	(b)	whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms; 

  

	(c)	the words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”; 

 

	(d)	the word “will” shall be construed to have the same meaning and effect as the word “shall”; 

  

	(e)	any definition of or reference to any contract, agreement, document, instrument, commitment, license, undertaking or other record herein shall be construed as referring to such
contract, agreement, document, instrument, commitment, license, undertaking or other record as from time to time amended, supplemented, restated or otherwise modified; 

  

	(f)	any reference herein to any Person shall be construed to include such Person’s successors and permitted assigns; 

  

	(g)	the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any
particular provision hereof; and 

  

	(h)	unless the context otherwise requires, all references herein to Sections, Exhibits and Schedules shall be construed to refer to Sections, Exhibits and Schedules to, this Agreement.

  

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 ARTICLE 2 
 PURCHASE AND SALE OF SHARES 
 2.1 Agreement to Issue, Sell and Purchase the Shares. Subject to the terms and
the conditions hereof, Tercica will issue and sell to Ipsen, and Ipsen will purchase from Tercica, upon the terms and conditions hereinafter set forth, the Shares for the Purchase Price. 
 2.2 Closing, Delivery and Payment. 
  

	(a)	Closing. Subject to the satisfaction or waiver (in accordance with the terms of this Agreement) of all of the conditions set forth in Article 6, the closing of the sale and
purchase of the Shares (the Closing) shall occur at the offices of Cooley Godward Kronish LLP (at the address set forth in the notice provisions of Section 7.8 below) on the date hereof, or at such other place, time or date as may
be mutually agreed to in writing by Ipsen and Tercica. 

  

	(b)	Closing Deliverables. At the Closing, Tercica shall deliver or cause to be conveyed by Tercica’s transfer agent for delivery to Ipsen one or more stock certificates in
respect of the Shares in the name of Ipsen (including, if Tercica has caused such stock certificates to be conveyed by Tercica’s transfer agent, evidence reasonably satisfactory to Ipsen that Tercica has provided irrevocable delivery
instructions in respect of such stock certificates to Tercica’s transfer agent), and Ipsen shall deliver to Tercica (or cause an Affiliate to deliver to Tercica) by wire transfer of same day funds the amount of the Purchase Price.

  

	(c)	Proceedings at the Closing. All actions to be taken and all documents not attached as exhibits to this Agreement to be executed and delivered by Tercica in connection with
the consummation of the transactions contemplated at the Closing shall be reasonably satisfactory in form and substance to Ipsen and its counsel, and all actions to be taken and all documents not attached as exhibits to this Agreement to be executed
and delivered by Ipsen in connection with the consummation of the transactions contemplated at the Closing shall be reasonably satisfactory in form and substance to Tercica and its counsel. All actions to be taken and all documents to be executed
and delivered by all parties hereto at the Closing shall be deemed to have been taken and executed and delivered simultaneously, and no action shall be deemed taken nor any document executed or delivered until all have been taken, executed, and
delivered. The Closing shall be deemed to have occurred when all conditions have been met or waived and all deliverables have been delivered. 

  

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 ARTICLE 3 
 REPRESENTATIONS AND WARRANTIES OF TERCICA 
 Tercica hereby represents and warrants to Ipsen that, except as set forth
in the Tercica SEC Reports and the Disclosure Schedule, the following are true and correct: 
 3.1 Organization and Qualification. Tercica is a
corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as presently
conducted. Tercica is qualified to do business as a foreign corporation in each jurisdiction in which qualification is required except where failure to be so qualified would not reasonably be expected to have a Material Adverse Effect on Tercica.

 3.2 Authorized Capital Stock. Tercica’s authorized capital stock consists of (i) 100,000,000 shares of Common Stock, of which as of
July 18, 2008 (A) 52,330,320 shares of Common Stock were issued and outstanding, (B) 8,953,834 shares of Common Stock were reserved for issuance under Tercica’s Amended and Restated 2004 Stock Plan, 2002 Stock Plan and 2002
Executive Stock Plan (the Plans), (C) 232,839 shares of Common Stock were reserved for future issuance under Tercica’s 2004 Employee Stock Purchase Plan, (D) 6,762,496 shares of Common Stock were reserved for issuance
upon the exercise of outstanding options and restricted stock units granted under the Plans, (E) 15,720,653 shares of Common Stock were reserved for issuance upon the exercise of the Warrant and the Convertible Notes and (F) 260,000 shares
were reserved for issuance upon the exercise of an outstanding warrant issued to Kingsbridge Capital Limited, and (ii) 5,000,000 shares of Preferred Stock, 1,000,000 of which were designated Series A Junior Participating Preferred Stock, none
of which were issued or outstanding. Tercica has not issued any shares since July 18, 2008 other than pursuant to employee or director equity incentive plans or purchase plans approved by the Board of Directors of Tercica. The issued and
outstanding shares of Common Stock have been duly authorized and validly issued, are fully paid and nonassessable, have been issued in compliance with all federal and state securities laws and were not issued in violation of or subject to any
preemptive rights or other rights to subscribe for or purchase securities. Tercica does not have outstanding any options to purchase, or any preemptive rights or other rights to subscribe for or to purchase, any securities or obligations convertible
into, or any contracts or commitments to issue or sell, shares of its capital stock and there are no agreements or commitments obligating Tercica to repurchase, redeem, or otherwise acquire capital stock or other securities of Tercica. There are no
agreements to which Tercica is a party or by which it is bound with respect to the voting (including voting trusts or proxies), registration under the Securities Act, or sale or transfer (including agreements relating to pre-emptive rights, rights
of first refusal, co-sale rights or “drag-along” rights) of any securities of Tercica. 
 3.3 No Interest in any Person. Tercica does not
own, directly or indirectly, any capital stock, membership interests, partnership interest, joint venture interest or other equity interest (or interest that is convertible into, or exchangeable or executable for, any of the foregoing) in any
Person. 
  

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 3.4 Issuance, Sale and Delivery of Shares. The issuance, sale and delivery of the Shares have been duly authorized
by all necessary corporate action and, when issued, delivered and paid for in accordance with the terms hereof, will be duly authorized, validly issued, fully paid and nonassessable. No further approval or authorization of the Board of Directors of
Tercica, the stockholders of Tercica or any other Person will be required for the issuance and sale of any Shares to be issued and sold by Tercica as contemplated herein. 
 3.5 Authorization; Due Execution, Delivery and Performance of this Agreement. Tercica has full legal right, corporate power and authority to enter into this Agreement, issue the Shares and perform the
transactions contemplated by this Agreement. This Agreement will upon delivery be duly authorized, executed and delivered by Tercica. The making, issuing and performance of this Agreement by Tercica and the consummation of the transactions herein
contemplated will not (i) violate any provision of the organizational documents of Tercica, (ii) result in the creation of any lien, charge, security interest or encumbrance upon any assets of Tercica pursuant to the terms or provisions
of, or will not conflict with, result in the breach or violation of, or constitute, either by itself or upon notice or the passage of time or both, a default under, or give any person any rights of termination, amendment, acceleration or
cancellation of, any agreement, commitment, mortgage, deed of trust, lease, franchise, license, indenture, permit or other instrument (A) to which Tercica is a party or by which Tercica or its properties may be bound or affected and
(B) which individually or in the aggregate would be reasonably likely to result in a material liability of Tercica or have a Material Adverse Effect, or (iii) violate any statute or any authorization, judgment, decree, order, rule or
regulation of any court or any regulatory body, administrative agency or other governmental body applicable to Tercica or any of its properties in a manner that would reasonably be expected to have a Material Adverse Effect. No consent, approval,
authorization or other order of any court, regulatory body, administrative agency or other governmental body is required for the execution and delivery by Tercica of this Agreement or the consummation by Tercica of the transactions contemplated
herein, other than such as have been made or obtained and except for compliance with the blue sky laws and federal securities laws applicable to the offering of the Shares. Upon its execution and delivery, and assuming the valid execution thereof by
Ipsen and Suraypharm, this Agreement will constitute the valid and binding obligations of Tercica, enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or
at law). 
 3.6 Valid Offering. Assuming the accuracy of the representations and warranties of Ipsen set forth in Article 4, the offer, sale, and
issuance of the Shares will be exempt from the registration requirements of the Securities Act and will have been registered or qualified (or are exempt from registration and qualification) under the registration or qualification requirements of all
applicable state securities Laws. 
  

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 3.7 No Defaults. Tercica is not in violation or default of any provision of its certificate of incorporation or
bylaws, or other organizational documents. Except as to defaults, violations and breaches which, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect on Tercica, Tercica is not in breach of or default
with respect to any provision of any agreement, judgment, decree, order, mortgage, deed of trust, lease, franchise, license, indenture, permit or other instrument to which it is a party or by which it or any of its properties are bound and has not
received any written notice of termination under any such documents, which termination would reasonably be expected to have a Material Adverse Effect on Tercica; and there does not exist any state of fact which, with notice or lapse of time or both,
would constitute an event of default on the part of Tercica as defined in such documents, except such defaults which individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect on Tercica. 
 3.8 No Material Change. Between March 31, 2008 and the date hereof, (i) Tercica has not incurred, other than in the ordinary course of business, any
material liabilities or obligations which would be required under GAAP to be set forth on Tercica’s balance sheet, (ii) Tercica has not sustained any material loss or interference with its business or properties from fire, flood,
windstorm, accident or other calamity, (iii) Tercica has not paid or declared any dividends or other distributions with respect to its capital stock, (iv) Tercica is not in default in the payment of principal or interest on any outstanding
debt obligations, and (v) there have been no events or occurrences which, individually or in the aggregate, have had or would reasonably be expected to have a Material Adverse Effect on Tercica. 
 3.9 Intellectual Property. 
  

	(a)	To the best of Tercica’s Knowledge, the use, practice or other commercial exploitation of the Intellectual Property Rights owned by or licensed to Tercica and the operation of
Tercica’s business as presently conducted does not infringe, constitute an unauthorized use of or misappropriate any rights owned or controlled by any third Person including Intellectual Property Rights of any third Person in a way that would
be reasonably likely to have a Material Adverse Effect on Tercica. Tercica is not a party to or the subject of any pending or, to Tercica’s Knowledge, threatened suit, action, investigation or proceeding which involves a claim against Tercica,
of infringement, unauthorized use, or violation of any Intellectual Property Rights of any Person, or challenges the ownership, use, validity or enforceability of any Intellectual Property Rights or contests the right of Tercica to use, exercise,
license, transfer or dispose of any Intellectual Property Rights owned by or licensed to Tercica, or any products, processes or materials covered thereby in any manner. 

  

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	(b)	No Person (including employees and former employees of Tercica), to Tercica’s Knowledge, is infringing, violating, misappropriating or otherwise misusing any Intellectual
Property Rights owned by or licensed to Tercica, and Tercica has not made any such claims against any Person (including employees and former employees of Tercica). 

  

	(c)	No Trade Secret or any other non-public, proprietary information which is material to the business of Tercica as presently conducted has been authorized to be disclosed or, to
Tercica’s Knowledge, has been actually disclosed by Tercica to any employee or any third Person other than (i) pursuant to a confidentiality or non-disclosure agreement restricting the disclosure and use of the Intellectual Property Rights
owned by or licensed to Tercica, or (ii) to such employees or third persons who otherwise have a duty of confidentiality to Tercica. Each current and former Key Employee has entered into an agreement containing appropriate confidentiality and
invention assignment provisions. For purposes of this Section 3.9(c), Key Employee means any officer of Tercica as well as any employee of Tercica who either alone or in concert with others develops any Intellectual Property
Rights owned by or licensed to Tercica. 

  

	(d)	Tercica has taken all commercially reasonable steps to protect and preserve the confidentiality and value of all Intellectual Property Rights and any other confidential information
owned by or licensed to Tercica. 

 3.10 Compliance. 
  

	(a)	Tercica has complied in all material respects with each Law binding on it or on any of its assets or properties and is not currently in violation of any such Law, in the case of
each of the foregoing, the noncompliance with which would reasonably be expected to result in Material Adverse Effect on Tercica. Tercica has not received any written notices or orders of noncompliance issued to Tercica under or in respect of any
such Law. 

  

	(b)	Tercica has all franchises, permits, licenses, consents and other governmental or regulatory authorizations and approvals necessary for the conduct of its business as presently
conducted, except for such of the foregoing, the failure to possess which, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect on Tercica. 

 3.11 Litigation. Tercica has not received notice of the assertion of, been threatened with or otherwise gained Knowledge of facts reasonably likely to result in,
any action, suit, proceeding, claim, arbitration or investigation, before any Governmental Entity against Tercica which would reasonably be expected to result in a material liability to, or have a Material Adverse Effect on, Tercica in the event of
an adverse outcome or that in any manner challenges or seeks to or would otherwise prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. There is no order of any governmental entity binding on Tercica or any of its
assets or properties. 
  

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 3.12 Labor. Tercica is not a party to any labor or collective bargaining agreement, and no employees of Tercica
are represented by any labor organization. Within the preceding three years, there have been no representation or certification proceedings, or petitions seeking a representation proceeding, pending or, to Tercica’s Knowledge, threatened to be
brought or filed with the National Labor Relations Board or any other labor relations tribunal or authority. Within the preceding three years, to Tercica’s Knowledge, there have been no organizing activities involving Tercica in respect of any
group of employees of Company. There are no strikes, work stoppages, slowdowns, lockouts, material arbitrations, or material grievances or other material labor disputes pending or, to Tercica’s Knowledge, threatened against or involving
Tercica. 
 3.13 Corrupt Practices. Neither Tercica nor, to Tercica’s Knowledge, any agent or other person acting on behalf of Tercica, has
(i) directly or indirectly, used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic
government officials or employees or to foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by Tercica or made by any person acting on its behalf and of which Tercica is
aware in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 
 3.14
SEC Filings; Financial Statements. 
  

	(a)	Since January 1, 2008, Tercica has filed all forms, reports and documents required to be filed with the SEC, except to the extent that failure to so file would not reasonably
be expected to be material to an investor. Such filings are available to Ipsen on the SEC Website. In addition, all exhibits to the Tercica SEC Reports are available on the SEC Website, except to the extent of Confidential Treatment Requests granted
by the SEC. All documents required to be filed as exhibits to the Tercica SEC Reports have been so filed, and all material contracts that were filed as exhibits to Tercica’s most recent Form 10-K filing are in full force and effect, except
those which have expired in accordance with their terms, and Tercica is not in default thereunder, except where any such default has not resulted in or would not reasonably be expected to result in a loss of any material right granted to Tercica
thereunder. As of their respective filing dates, the Tercica SEC Reports (i) complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the SEC thereunder applicable to such Tercica SEC Reports,
and (ii) did not at the time they were filed (or if amended or superseded by a filing prior to the date of this Agreement, then on the date of such filing) contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 

  

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	(b)	The Tercica Financials (i) complied as to form in all material respects with applicable accounting requirements and with the published rules and regulations of the SEC with
respect thereto as of their respective dates, (ii) were prepared in accordance with GAAP applied on a consistent basis throughout the periods involved and consistent with each other (except as may be indicated in the notes thereto or, in the
case of unaudited interim financial statements, as may be permitted by the SEC on Form 10-Q under the Exchange Act), and (iii) fairly presented the financial position of Tercica as at the respective dates thereof and the consolidated results of
operations and cash flows for the periods indicated, except that the unaudited interim financial statements were reasonably expected to be subject to normal and recurring year-end adjustments which would not be material in amount. There has been no
material change in Tercica’s accounting policies except as described in the notes to the Tercica Financials. As of the date of the Tercica Financials, Tercica did not have any obligations or liabilities (absolute, accrued, contingent or
otherwise) of any nature required to be disclosed on a balance sheet or in the related notes to the financial statements prepared in accordance with GAAP which are, individually or in the aggregate, material to the business, results of operations or
financial condition of Tercica, except liabilities (x) provided for in the Tercica Balance Sheet or (y) which would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect on Tercica.

 3.15 Corporate Records. Tercica has delivered or made available to Ipsen true and complete copies of all corporate records requested
in writing by Ipsen in connection with its decision to purchase the Shares. 
 3.16 NASDAQ Compliance and Listing. The Common Stock is registered
pursuant to Section 12(b) of the Exchange Act and is listed on The NASDAQ Global Market, and Tercica has taken no action that is designed to, or is likely to have the effect of, terminating the registration of the Common Stock under the
Exchange Act or delisting the Common Stock from The NASDAQ Global Market. Tercica shall comply in all material respects with all requirements of the NASDAQ Stock Market with respect to the listing of the Shares on The NASDAQ Global Market.

 3.17 Reservation of Common Stock. As of the date hereof, Tercica has available (and will keep available at all times), free of preemptive rights
and other similar contractual rights of stockholders, shares of Common Stock for the purpose of enabling Tercica to satisfy any obligation to issue the Shares. 
 3.18 Broker’s Fee. There are no brokers or finders entitled to compensation in connection with the sale of the Shares to Ipsen. 
  

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 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES OF IPSEN 
 Ipsen hereby represents and warrants to Tercica as follows: 
 4.1 Organization and Qualification. Ipsen is a société anonyme duly organized, validly existing and in good standing under the laws of France
and, together with its Subsidiaries, has all requisite corporate power and authority to own, lease and operate its and its Subsidiaries’ properties and to carry on its and its Subsidiaries’ business as presently conducted. 
 4.2 Investment Representations. Ipsen is knowledgeable, sophisticated and experienced in making, and is qualified to make, decisions with respect to investments
in securities, including the Shares, and (without limiting any representation or warranty provided by Tercica herein) has requested, received, reviewed and considered all information it deems relevant in making an informed decision to purchase the
Shares. Ipsen is acquiring the Shares for its own account for investment only and with no present intention of distributing any of such Shares or any arrangement or understanding with any other persons regarding the distribution of such Shares
within the meaning of Section 2(11) of the Securities Act. Ipsen is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act. Ipsen understands that the Shares have not been
registered under the Securities Act or registered or qualified under any state securities laws in reliance on specific exemptions therefrom, which exemptions may depend upon, among other things, the bona fide nature of Ipsen’s investment
intent as expressed herein. 
 4.3 Authorization; Due Execution, Delivery and Performance of this Agreement. Each of Ipsen and Suraypharm has full
legal right, corporate power and authority to enter into this Agreement and perform the transactions contemplated hereunder. This Agreement upon delivery will be duly authorized, executed and delivered by Ipsen and Suraypharm. The making, issuing
and performance of this Agreement by Ipsen and Suraypharm, and the consummation of the transactions herein contemplated will not: (i) violate any provision of the organizational documents of either Ipsen or Suraypharm, (ii) violate any
statute or any authorization, judgment, decree, order, rule or regulation of any court or any regulatory body, administrative agency or other Governmental Entity applicable to Ipsen or Suraypharm, or (iii) violate any material contract,
agreement, or instrument to which Ipsen is a party or by which it is bound, that would reasonably be expected to have a material adverse effect on Ipsen’s ability to perform its obligations under this Agreement. No consent, approval,
authorization or other order of any court, regulatory body, administrative agency or other governmental body is required for the execution and delivery by either Ipsen or Suraypharm of this Agreement or the consummation by either Ipsen or Suraypharm
of the transactions contemplated hereby, other than such as have been made or obtained. Upon its execution and delivery, and assuming the valid execution thereof by Tercica, this Agreement will constitute the valid and binding obligations of each of
Ipsen and Suraypharm enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights
generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
  

 Page 13 

 4.4 No Legal or Tax Advice. Ipsen understands that nothing in this Agreement, the Tercica SEC Reports or any other
materials presented to Ipsen in connection with the purchase and sale of the Shares constitutes legal or tax advice. Ipsen has consulted such legal and tax advisors as it, in its sole discretion, has deemed necessary or appropriate in connection
with its purchase of the Shares. Ipsen understands that it (and not Tercica) shall be responsible for its own tax liabilities that may arise as a result of this investment or the transactions contemplated by this Agreement. 
 4.5 No Defaults. Neither Ipsen nor any of its Subsidiaries is in violation or default of any provision of its organizational documents or any agreement, judgment,
decree, order, mortgage, deed of trust, lease, franchise, license, indenture, permit or other instrument to which it is a party or by which it or any of its properties are bound, and has not received any written notice of termination under any such
material documents, and there does not exist any state of fact which, with notice or lapse of time or both, would constitute an event of default on the part of Ipsen or any of its Subsidiaries as defined in such documents, in each case which would
reasonably be expected to have a material adverse effect on Ipsen’s ability to perform its obligations under this Agreement. 
 4.6 Compliance.
Ipsen and each of its Subsidiaries have complied in all material respects with each Law binding on it or on any of its assets or properties and is not currently in violation of any such Law, and there have been no written notices or orders of
noncompliance issued to Ipsen or its Subsidiaries under or in respect of any such Law, in each case the noncompliance with which would reasonably be expected to have a material adverse effect on Ipsen’s ability to perform its obligations under
this Agreement. 
 4.7 Litigation. Neither Ipsen nor any of its Subsidiaries has received written notice of the assertion of, or to the knowledge of
Ipsen, been threatened with any action, suit, proceeding, claim, arbitration or investigation before any Governmental Entity against Ipsen or any of its Subsidiaries or order of any Governmental Entity binding on Ipsen, its Subsidiaries or any of
their respective assets or properties, in the case of all the foregoing, which would reasonably be expected to have a material adverse effect on Ipsen’s ability to perform its obligations under this Agreement. 
 4.8 Restrictive Legend. Ipsen understands that, until such time as a registration statement covering the Shares has been declared effective or the Common Stock
associated with such Shares may be sold pursuant to Rule 144 under the Securities Act without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Shares shall bear a restrictive legend in
substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for the Shares): 
 “THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT,
OR AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.” 
  

 Page 14 

 ARTICLE 5 
 COVENANTS 
 5.1 Cooperation. 
  

	(a)	Each party hereto shall cooperate with the other to fulfill the closing conditions set forth in Article 6, including delivery of all documents set forth in such conditions.

  

	(b)	Without limiting the foregoing, each party hereto shall take all commercially reasonable steps necessary or desirable, and proceed diligently and in good faith and shall use all
commercially reasonable efforts to obtain, as promptly as practicable, all authorizations, consents, orders and approvals of all Governmental Entities that may be or become necessary for such party’s execution and delivery of, and the
performance of its obligations pursuant to, this Agreement. 

  

	(c)	Each party hereto shall promptly inform the other party of any communication from any Governmental Entity regarding any of the transactions contemplated by this Agreement. If any
party or Affiliate thereof receives a request for additional information or documentary material from any such Governmental Entity in respect of the transactions contemplated hereby, then such party will endeavor in good faith to make, or cause to
be made, as soon as reasonably practicable and after consultation with the other party, an appropriate response in compliance with such request. 

 5.2 Notice of Certain Events. Each party shall, promptly after it obtains Knowledge thereof, notify the other of: 
  

	(a)	any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated by the Agreement;

  

	(b)	any notice or other communication from any Governmental Entity in connection with the review, clearance or approval of the transactions contemplated by the Agreement; and

  

	(c)	any legal proceeding commenced or threatened against, relating to or involving or otherwise affecting such party that relates to the consummation of the transactions contemplated by
the Agreement. 

  

 Page 15 

 ARTICLE 6 
 CONDITIONS TO CLOSING 
 6.1 Tercica’s obligations set forth in Section 2.2 of this Agreement shall be
subject to the following conditions, any one or more of which may be waived by Tercica (to the extent legally permissible): 
  

	(a)	Representations and Warranties True. The representations and warranties made by Ipsen in Article 4 hereof shall be true and correct in all material respects (and any
representations and warranties qualified by materiality shall be true and correct in all respects) as of the date of this Agreement, except to the extent such representations and warranties expressly related to any earlier date, in which case such
representations and warranties shall be true and correct in all material respects on and as of such earlier date. 

  

	(b)	Compliance with Covenants. Ipsen shall have performed and complied in all material respects with all covenants and agreements contained in this Agreement that are required to
be performed or complied with by it on or before the Closing. 

  

	(c)	Litigation. No action, suit or proceeding shall have been initiated or threatened with the probable or reasonably likely effect of enjoining or preventing the consummation of
the transactions contemplated hereby or seeking (with the probable or reasonably likely effect of receiving) material damages on account the consummation of the transactions contemplated hereby. 

  

	(d)	Orders. No Governmental Entity of competent jurisdiction shall have enacted, issued, promulgated or entered any Law, judgment, decree, injunction or other order (whether
temporary, preliminary or permanent) that is in effect and restrains, enjoins or otherwise prohibits consummation of the transactions contemplated by the Agreement or materially modifies any material term of the Agreement or the related transactions
contemplated hereby (collectively, an Order), and no Governmental Entity shall have instituted any proceeding seeking any such Order. 

  

	(e)	Other Authorizations, Consents etc. All other material authorizations, consents, orders or approvals of, or declarations or filings with, or expirations of waiting periods
imposed by, any Governmental Entity necessary for the consummation of the transactions contemplated hereby shall have been obtained or filed, or shall have occurred. 

  

	(f)	Certificate. Ipsen shall have delivered to Tercica a certificate executed by an officer of Ipsen, dated as of the Closing Date, as to the matters set forth in this Sections
6.1(a) and 6.1(b) above. 

  

 Page 16 

 6.2 Ipsen’s obligation set forth in Section 2.2 of this Agreement shall be subject to the following conditions,
any one or more of which may be waived by Ipsen (to the extent legally permissible): 
  

	(a)	Representations and Warranties True. The representations and warranties of Tercica in Article 3 hereof shall be true and correct in all material respects (and any
representations and warranties qualified by materiality shall be true and correct in all respects) as of the date of this Agreement, except to the extent such representations and warranties expressly related to any earlier date, in which case such
representations and warranties shall be true and correct in all material respects on and as of such earlier date. 

  

	(b)	Compliance with Covenants. Tercica shall have performed and complied with in all material respects all covenants and agreements contained in this Agreement that are required
to be performed or complied with by it on or before the Closing. 

  

	(c)	Disclosure. As of the Closing Date, the Tercica SEC Reports (each as amended, supplemented or superseded as of the Closing Date) shall not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 

  

	(d)	Litigation. No action, suit, or proceeding shall have been initiated or threatened with the probable or reasonably likely effect of enjoining or preventing the consummation
of the transactions contemplated hereby or seeking (with the probable or reasonably likely effect of receiving) material damages on account the consummation of the transactions contemplated hereby. 

  

	(e)	Orders. No Governmental Entity of competent jurisdiction shall have enacted, issued, promulgated or entered any Order, and no Governmental Entity shall have instituted any
proceeding seeking any such Order. 

  

	(f)	Other Authorizations, Consents etc. All other material authorizations, consents, orders or approvals of, or declarations or filings with, or expirations of waiting periods
imposed by, any Governmental Entity necessary for the consummation of the transactions contemplated hereby shall have been obtained or filed, or shall have occurred. 

  

	(g)	Certificate. Tercica shall have delivered to Ipsen a certificate executed by an officer of Tercica, dated the Closing Date, as to the matters set forth in Sections 6.2(a),
6.2(b) and 6.2(c) above. 

  

 Page 17 

 ARTICLE 7 
 MISCELLANEOUS 
 7.1 Acknowledgement; Waiver of Anti-Dilution Adjustments. 
  

	(a)	The parties hereto acknowledge and agree that (i) the Shares are being issued and sold hereunder in accordance with the terms of Section 5.1 of the Affiliation Agreement,
(ii) Ipsen is purchasing the Shares as Suraypharm’s designated Affiliate under Section 5.1 of the Affiliation Agreement, (iii) the transactions contemplated by this Agreement shall satisfy in full each of Tercica’s
obligations to Suraypharm under Section 5.1 of the Affiliation Agreement in connection with the issuance of shares of Common Stock to Genentech at the Second Genentech Closing and (iv) from and after the Closing, the parties hereto shall
have no further rights or obligations under Section 5.1 of the Affiliation Agreement in connection with the issuance of shares of Common Stock to Genentech at the Second Genentech Closing. 

  

	(b)	Ipsen hereby waives in its entirety the operation of Section 6(f) (Price-Based-Antidilution) of the Warrant and Section 3 (Price-Based Anti-Dilution Adjustment of
Conversion Price) of the Convertible Notes with respect to the Shares issued and sold to Ipsen hereunder. 

 7.2 Assignment. No party
may assign this Agreement to a Third Party without the prior written consent of the other parties hereto, which consent shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, (a) without the prior written consent of
Tercica, each of Ipsen and Suraypharm may assign this Agreement in its entirety to any of its Affiliates, provided that any such assignment shall not relieve Ipsen of its responsibilities for performance of its obligations under this Agreement and
(b) without the prior written consent of any other party, any party hereto may assign this Agreement in its entirety in connection with a merger or similar reorganization or the sale of all or substantially all of its assets. Any attempted
assignment in violation of this Section 7.2 shall be void and of no effect. All valid assignments shall be binding upon and inure to the benefit of and be enforceable by and against the successors and permitted assigns of Ipsen, Suraypharm or
Tercica, as the case may be. If any party hereto assigns this Agreement under clause (b) above or seeks and obtains the any other party’s consent to assign this Agreement in its entirety to a Third Party, the assignee shall assume all
obligations of its assignor under this Agreement. 
 7.3 No Survival. The representations and warranties made herein shall terminate as of the
Closing. All statements as to factual matters contained in any certificate or other instrument delivered by or on behalf of any party pursuant hereto in connection with the transactions contemplated hereby shall be deemed to be representations and
warranties by such party hereunder solely as of the date of such certificate or instrument. 
  

 Page 18 

 7.4 Waiver. Except as specifically provided for herein, the waiver from time to time by any of the parties hereto
of any of such party’s rights or such party’s failure to exercise any remedy shall not operate or be construed as a continuing waiver of same or of any other of such party’s rights or remedies provided in this Agreement. 

7.5 Expenses. Whether or not the transactions contemplated hereby are consummated, (a) the legal, accounting, financing and due diligence expenses
incurred by Ipsen in connection with such transactions will be borne by Ipsen and (b) the legal and other costs and expenses incurred by Tercica in connection with the transactions contemplated hereby will be borne by Tercica. 
 7.6 Further Assurances. Each party shall duly execute and deliver, or cause to be duly executed and delivered, such further instruments and do and cause to be
done such further acts and things, including, without limitation, the filing of such assignments, agreements, documents and instruments, as may be necessary or as any other party may reasonably request in connection with this Agreement or to carry
out more effectively the provisions and purposes hereof, or to better assure and confirm unto such other party its rights and remedies under this Agreement. 
 7.7 Force Majeure. No failure or omission by the parties in the performance of any obligation of this Agreement shall be deemed a breach of this Agreement or create any liability if the same shall arise from any cause or causes
beyond the control of the parties (including, without limitation, the following: acts of God; acts or omissions of any government; any rules, regulations or orders issued by any governmental authority or by any officer, department, agency or
instrumentality thereof; fire; flood; storm; earthquake; accident; acts of war or terrorism; rebellion; insurrection; riot and invasion), provided that such failure or omission resulting from one of the foregoing causes is cured as soon as
practicable after its occurrence. 
 7.8 Notices. Any notice required under this Agreement shall be in writing and shall specifically refer to this
Agreement. Notices shall be sent via one of the following means and will be effective (a) on the date of delivery, if delivered in person; (b) on the date of receipt, if sent by a facsimile (with delivery confirmed); or (c) on the
date of receipt, if sent by private express courier or by first class certified mail, return receipt requested. Any notice sent via facsimile shall be followed by a copy of such notice by private express courier or by first class mail. Notices shall
be sent to the other parties at the addresses set forth below. Any party hereto may change its addresses for purposes of this Section 7.8 by sending notice to the other parties. 
 If to Tercica, to: 
 Tercica, Inc. 
 2000 Sierra Point Parkway, Suite 400 
 Brisbane, CA 94005 
 U.S.A. 
 Attention: General Counsel 
 Facsimile: +1 650 238 1520 
  

 Page 19 

 With a required copy (which shall not constitute notice) to: 
 Cooley Godward Kronish LLP 
 Five Palo Alto Square 
 3000 El Camino Real 
 Palo Alto, California 94306 
 U.S.A. 
 Attention: Suzanne Sawochka Hooper 
 Facsimile: +1 650 849 7400 
 If to Suraypharm or Ipsen, to: 
 Ipsen, S.A. 
 42, rue du Docteur Blanche 
 75016 Paris 
 France 
 Attention: General Counsel 
 Facsimile: + 331 44 96 11 88 
 With a required copy (which shall not constitute notice)
to: 
 Freshfields Bruckhaus Deringer US LLP 
 520 Madison Avenue 
 34th Floor 
 New York, NY 10022 
 U.S.A. 
 Attention: Matthew Herman, Esq. 
 Facsimile: +1 212 277 4001 
 7.9 Captions and Construction. Titles, headings and other captions are for convenience only and are not to be used for interpreting this Agreement. Ambiguities,
if any, in this Agreement shall not be construed against any party, irrespective of which party may be deemed to have drafted the Agreement or authorized the ambiguous provision. 
 7.10 Severability. If any provision hereof should be held invalid, illegal or unenforceable in any respect, then, to the fullest extent permitted by applicable law, (a) all other provisions hereof shall
remain in full force and effect and shall be liberally construed in order to carry out the intent of the parties as nearly as may be possible, and (b) the parties agree to negotiate provisions, in replacement of the provision held invalid,
illegal or unenforceable, that is consistent with applicable law and accomplishes, as nearly as possible, the original intention of the parties with respect thereto. To the fullest extent permitted by applicable law, each party hereby waives any
provision of law that would render any provision hereof prohibited or unenforceable in any respect. 
  

 Page 20 

 7.11 Governing Law. This Agreement shall be governed and interpreted in accordance with the substantive laws of
the State of New York notwithstanding the provisions governing conflicts of laws under such law of the State of New York to the contrary. 
 7.12
Counterparts; Facsimiles. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. For purposes hereof, a facsimile copy of
this Agreement, including the signature pages hereto, will be deemed to be an original. Notwithstanding the foregoing, the parties shall deliver original execution copies of this Agreement to one another as soon as practicable following execution
thereof. 
 7.13 Entire Agreement. This Agreement, the Disclosure Schedule and the other agreements, documents and instruments contemplated hereby and
referenced herein sets forth all the covenants, promises, agreements, warranties, representations, conditions and understandings among the parties hereto and supersedes and terminates all warranties, representations, conditions or understandings,
either oral or written, among the parties with respect to the subject matter hereof. No subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the parties hereto unless reduced to writing and signed by the
respective authorized representatives of the parties. 
 7.14 No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person. 
 [SIGNATURES APPEAR ON FOLLOWING PAGE] 
  

 Page 21 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized
representatives as of the day and year first above written. 
  

					
	TERCICA, INC.
		
	By:	 	/s/ Stephen N. Rosenfield
		 	Name:	 	Stephen N. Rosenfield
		 	Title:	 	 Executive Vice President of Legal Affairs,
 General
Counsel and Secretary

  

					
	SURAYPHARM
		
	By:	 	/s/ Jean-Luc Bélingard
		 	Name:	 	Jean-Luc Bélingard
		 	Title:	 	 Chairman and CEO

  

					
	IPSEN, S.A.
		
	By:	 	/s/ Jean-Luc Bélingard
		 	Name:	 	Jean-Luc Bélingard
		 	Title:	 	Chairman and CEO

 [SIGNATURE PAGE FOR COMMON
STOCK PURCHASE AGREEMENT]Form of Warrant

 Exhibit 4.1 
 THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION
STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO TRANSFER AND OTHER RESTRICTIONS SET FORTH IN AN INVESTMENT AGREEMENT, DATED AS OF JULY 22, 2008, COPIES OF WHICH ARE ON FILE WITH THE WARRANT AGENT.

 WARRANT 
 to purchase

 [    ] 
 Shares of Common Stock of 
 BOSTON PRIVATE FINANCIAL HOLDINGS, INC. 
 a Massachusetts Corporation 
 **
Exercisable only if countersigned by the Warrant Agent as Provided Herein** 
  

			
	No.            	 	Issue Date:                     

 1. Definitions. Unless the context otherwise requires, when used herein the following terms
shall have the meanings indicated. 
 “Affiliate” has the meaning set forth in Section 6.9(a) of the Investment
Agreement. 
 “Appraisal Procedure” means a procedure whereby two independent appraisers, one chosen by the Company and one
by the Warrantholder (or if there is more than one Warrantholder, a majority in interest of Warrantholders), shall mutually agree upon the determinations then the subject of appraisal. Each party shall deliver a notice to the other appointing its
appraiser within 15 days after the Appraisal Procedure is invoked. If within 30 days after appointment of the two appraisers they are unable to agree upon the amount in question, a third independent appraiser shall be chosen within 10 days
thereafter by the mutual consent of such first two appraisers or, if such first two appraisers fail to agree upon the appointment of a third appraiser, such appointment shall be made by the American Arbitration Association, or any organization
successor thereto, from a panel of arbitrators having experience in the appraisal of the subject matter to be appraised. The decision of the third appraiser so appointed and chosen shall be given within 30 days after the selection of such third
appraiser. If 

 
three appraisers shall be appointed and the determination of one appraiser is disparate from the middle determination by more than twice the amount by which
the other determination is disparate from the middle determination, then the determination of such appraiser shall be excluded, the remaining two determinations shall be averaged and such average shall be binding and conclusive on the Company and
the Warrantholder; otherwise, the average of all three determinations shall be binding and conclusive on the Company and the Warrantholder. The costs of conducting any Appraisal Procedure shall be borne by the Warrantholder requesting such Appraisal
Procedure, except (A) the fees and expenses of the appraiser appointed by the Company and any other costs incurred by the Company shall be borne by the Company and (B) if such Appraisal Procedure shall result in a determination that is
disparate by 5% or more from the Company’s initial determination, all costs of conducting such Appraisal Procedure shall be borne by the Company. 
 “Beneficially Own” or “Beneficial Owner” has the meaning set forth in Section 4.1(f) of the Investment Agreement. 
 “BHC Act” means the Bank Holding Company Act of 1956, as amended, or any successor statute. 
 “Board of Directors” has the meaning set forth in Section 2.2(a)(1) of the Investment Agreement. 
 “Board Representative” has the meaning set forth in Section 4.3(a) of the Investment Agreement. 
 “Business Combination” means a merger, consolidation, statutory share exchange or similar transaction that requires adoption by the
Company’s stockholders. 
 “business day” means any day except Saturday, Sunday and any day which shall be a legal
holiday or a day on which banking institutions in the State of New York or in the Commonwealth of Massachusetts generally are authorized or required by law or other governmental actions to close. 
 “Capital Stock” means (A) with respect to any person that is a corporation or company, any and all shares, interests,
participations or other equivalents (however designated) of capital or capital stock of such person and (B) with respect to any person that is not a corporation or company, any and all partnership or other equity interests of such person.

 “CIBC Act” means the Change in Bank Control Act of 1978, as amended, or any successor statute. 
 “Common Stock” has the meaning set forth in Section 2. 
 “Company” has the meaning set forth in the preamble of the Investment Agreement. 
 “Company Subsidiary” has the meaning set forth in Section 2.2(a)(2) of the Investment Agreement. 
  

 2 

 “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute, and the rules and regulations promulgated thereunder. 
 “Exercise Price” means $6.62; provided, that the
foregoing shall be subject to adjustment or limitation as set forth herein. 
 “Expiration Time” has the meaning set forth
in Section 3. 
 “Fair Market Value” means, with respect to any security or other property, the fair market value of
such security or other property as determined by the Board of Directors, acting in good faith. If the Warrantholder does not accept the Board of Director’s calculation of fair market value and the Warrantholder and the Company are unable to
agree on fair market value, the Appraisal Procedure shall be used to determine Fair Market Value. 
 “Fundamental Change”
means the occurrence of one of the following: 
 (i) a “person” or “group” within the meaning of Section 13(d) of the
Exchange Act files a Schedule TO or any schedule, form or report under the Exchange Act disclosing that such person or group has become the direct or indirect ultimate Beneficial Owner of common equity of the Company representing more than 50% of
the voting power of the outstanding Common Stock; 
 (ii) consummation of any consolidation or merger of the Company or similar transaction
or any sale, lease or other transfer in one transaction or a series of transactions of all or substantially all of the consolidated assets of the Company and its Subsidiaries, taken as a whole, to any person other than one of the Company’s
Subsidiaries, in each case pursuant to which the Common Stock will be converted into cash, securities or other property, other than pursuant to a transaction in which the persons that Beneficially Owned, directly or indirectly, voting shares of the
Company immediately prior to such transaction Beneficially Own, directly or indirectly, voting shares representing a majority of the total voting power of all outstanding classes of voting shares of the continuing or surviving person immediately
after the transaction; or 
 (iii) the Company’s stockholders approve and adopt a plan of liquidation or dissolution of the Company or a
sale of all or substantially all of the Company’s assets. 
 “Governmental Entities” has the meaning set forth in
Section 1.2(b)(1)(A) of the Investment Agreement. 
 “Group” means a group as contemplated by Section 13(d)(3) of
the Exchange Act. 
 “Investment Agreement” means the Investment Agreement, dated as of July 22, 2008, as may be
amended from time to time, between the Company and Purchaser. 
 “Market Price” means, with respect to a particular
security, on any given day, the last reported sale price regular way or, in case no such reported sale takes place on such day, the average of the last closing bid and ask prices regular way, in either case on the principal national securities
exchange on which the applicable securities are listed or admitted to trading, or if not listed or admitted to trading on any national securities exchange, (A) the closing sale price for such day reported by The Nasdaq Global Select Market if
such security is traded over-the-counter 

  

 3 

 
and quoted in The Nasdaq Global Select Market, or (B) if such security is so traded, but not so quoted, the average of the closing reported bid and ask
prices of such security as reported by The Nasdaq Global Select Market or any comparable system, or (C) if such security is not listed on The Nasdaq Global Select Market or any comparable system, the average of the closing bid and ask prices as
furnished by two members of the National Association of Securities Dealers, Inc. selected from time to time by the Company for that purpose. If such security is not listed and traded in a manner that the quotations referred to above are available
for the period required hereunder, the Market Price per share of Common Stock shall be deemed to be the fair value per share of such security as determined in good faith by the Board of Directors. 
 “Ordinary Cash Dividends” means a regular quarterly cash dividend out of surplus or net profits legally available therefor (determined
in accordance with generally accepted accounting principles, consistently applied) and consistent with past practice. 
 “person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act. 
 “Preferred Stock” shall have the meaning set forth in the recitals of the Investment Agreement. 
 “Preliminary Fundamental Change” means, with respect to the Company, (A) the execution of definitive documentation for a
transaction or (B) the recommendation that stockholders tender in response to a tender or exchange offer, that could reasonably be expected to result in a Fundamental Change upon consummation. 
 “Pro Rata Repurchases” means any purchase of shares of Common Stock by the Company or any Affiliate thereof pursuant to any tender offer
or exchange offer subject to Section 13(e) or 14(e) of the Exchange Act or Regulation 14E thereunder, or pursuant to any other offer available to substantially all holders of Common Stock, whether for cash, shares of Capital Stock of the
Company, other securities of the Company, evidences of indebtedness of the Company or any other person or any other property (including, without limitation, shares of Capital Stock, other securities or evidences of indebtedness of a Company
Subsidiary), or any combination thereof, effected while this Warrant is outstanding; provided, however, that “Pro Rata Repurchase” shall not include any purchase of shares by the Company or any Affiliate thereof made in
accordance with the requirements of Rule 10b-18 as in effect under the Exchange Act. The “Effective Date” of a Pro Rata Repurchase shall mean the date of acceptance of shares for purchase or exchange under any tender or exchange
offer which is a Pro Rata Repurchase or the date of purchase with respect to any Pro Rata Repurchase that is not a tender or exchange offer. 
 “Purchaser” has the meaning set forth in the preamble of the Investment Agreement. 
 “SEC” means
the U.S. Securities and Exchange Commission. 
 “Securities” has the meaning set forth in the recitals of the Investment
Agreement. 
 “Securities Act” means the Securities Act of 1933, as amended, or any successor statute, and the rules and
regulations promulgated thereunder. 
  

 4 

 “Shares” has the meaning set forth in Section 2. 
 “Stockholder Approvals” means all stockholder approvals necessary to (A) approve the exercise of this Warrant for the Shares and
the issuance of any Shares which may be issued pursuant to the terms of this Warrant for purposes of Rule 4350(i) of the NASDAQ Marketplace Rules, and (B) amend the Restated Articles of Organization of the Company, as amended, to increase the
number of authorized shares of Common Stock to at least such number as shall be sufficient to permit the exercise of this Warrant for the Shares. For the avoidance of doubt, the Stockholder Approvals shall be deemed to be obtained for the purposes
of this Warrant only if all of the foregoing approvals shall have been obtained. 
 “Subsidiary” has the meaning set forth
in Section 2.2(a)(2) of the Investment Agreement. 
 “Underlying Security Price” has the meaning set forth in Annex
1. 
 “Voting Securities” has the meaning set forth in the BHC Act and any rules or regulations promulgated thereunder.

 “Warrant Agent” has the meaning set forth in Section 3. 
 “Warrant Agreement” means the Warrant Agreement, dated as of [    ], 2008, between the Company and the
Warrant Agent. 
 “Warrant Certificate” means this certificate evidencing the Warrant. 
 “Warrantholder” has the meaning set forth in Section 2. 
 “Warrant” means the Warrant issued pursuant to the Warrant Agreement and subject to the Investment Agreement. 
 2. Number of Shares; Exercise Price. This certifies that, for value received, [NAME OF HOLDER], its affiliates or its registered assigns (the
“Warrantholder”) is entitled, upon the terms and subject to the conditions hereinafter set forth, to acquire from the Company, in whole at any time or in part from time to time, after the receipt of Stockholder Approvals,
[            ] fully paid and nonassessable shares of common stock, $1.00 par value per share, of the Company (the “Common Stock”), at a purchase price per share of
Common Stock equal to the Exercise Price. The number of shares of Common Stock (the “Shares”) and the Exercise Price are subject to adjustment as provided herein, and all references to “Common Stock”, “Shares”
and “Exercise Price” herein shall be deemed to include any such adjustment or series of adjustments. This Warrant is issued pursuant to and in accordance with the Warrant Agreement, and will be subject to the additional terms and
conditions set forth in the Warrant Agreement. 
 3. Exercise of Warrant; Term. Subject to the terms and conditions hereof, to the
extent permitted by applicable laws and regulations, the right to purchase the Shares represented by this Warrant is exercisable, in whole or in part by the Warrantholder, at any time or from time to time after 9:00 a.m., New York City time, on the
date hereof, but in no event later than 5:00 p.m., New York City time, on the fifth anniversary of the date of issuance of the Warrant (the “Expiration Time”), by (A) the surrender of this Warrant and Notice of Exercise annexed
hereto, 

  

 5 

 
duly completed and executed on behalf of the Warrantholder, at the corporate trust office of
[                    ], or his successor as warrant agent (the “Warrant Agent”), at Boston Private Financial Holdings, Inc.,
Ten Post Office Square, Boston, MA 02109 (or such other office or agency of the Warrant Agent in the United States as it or the Company may designate by notice in writing to the Warrantholder at the address of the Warrantholder appearing on the
books of the Company), and (B) payment of the Exercise Price for the Shares thereby purchased at the election of the Warrantholder in one of the following manners: 
 (i) by tendering to the Warrant Agent in cash, by certified or cashier’s check or by wire transfer payable to the order of the
Company, or 
 (ii) by having the Warrant Agent withhold shares of Common Stock issuable upon exercise of this Warrant equal
in value to the aggregate Exercise Price as to which this Warrant is so exercised, based on the Market Price of the Common Stock on the trading day immediately prior to the date on which this Warrant is exercised and the Notice of Exercise is
delivered to the Warrant Agent. 
 If the Warrantholder does not exercise this Warrant in its entirety, the Warrantholder will be entitled to
receive from the Warrant Agent, on behalf of the Company, within a reasonable time, and in any event not exceeding three business days, a new Warrant Certificate in substantially identical form for the purchase of that number of Shares equal to the
difference between the number of Shares issuable pursuant to the Warrant evidenced by the Warrant Certificate and the number of Shares as to which the Warrant is so exercised. Notwithstanding anything in the Warrant Certificate to the contrary, the
Warrantholder hereby acknowledges and agrees that its exercise of this Warrant for the Shares is subject to the following conditions and limitations: 
 (A) this Warrant shall only be exercisable if the Company shall have first received the Stockholder Approvals; 
 (B) a Warrantholder shall not be entitled to exercise this Warrant for a number of Shares that would cause such Warrantholder and its Affiliates, collectively, to be deemed to own, control or have the power to vote, for purposes of the BHC
Act or the CIBC Act and any rules or regulations promulgated thereunder, 10% or more of any class of Voting Securities of the Company outstanding at such time (excluding for purposes of this calculation any reductions in the percentage of Voting
Securities such Warrantholder and its Affiliates so owns, controls or has the power to vote resulting from transfers by Purchaser and its Affiliates of Securities purchased by Purchaser pursuant to the Investment Agreement; it being understood, for
the avoidance of doubt, that no Security shall be included in any such percentage calculation to the extent it cannot by its terms be converted into or exercisable for Voting Securities by a Warrantholder or its Affiliates at the time of such
measurement or transfer). 
 4. Issuance of Shares; Authorization; Listing. Certificates for Shares issued upon exercise of this
Warrant will be issued in such name or names as the Warrantholder may designate and will be delivered to such named person or persons within a reasonable time, not to exceed three business days after the date on which this Warrant has been duly
exercised in accordance with the terms of this Warrant. The Company hereby represents and warrants that 

  

 6 

 
any Shares issued upon the exercise of this Warrant in accordance with the provisions of Section 3 will, upon receipt of the Stockholder Approvals, be
duly and validly authorized and issued, fully paid and nonassessable and free from all taxes, liens and charges (other than liens or charges created by the Warrantholder or taxes in respect of any transfer occurring contemporaneously therewith). The
Company agrees that the Shares so issued will be deemed to have been issued to the Warrantholder as of the close of business on the date on which the Warrant Certificate and payment of the Exercise Price are delivered to the Warrant Agent in
accordance with the terms hereof, notwithstanding that the stock transfer books of the Company may then be closed or certificates representing such Shares may not be actually delivered on such date. Subject to receipt of the Stockholder Approvals,
the Company will at all times reserve and keep available, out of its authorized but unissued Common Stock, solely for the purpose of providing for the exercise of this Warrant, the aggregate number of shares of Common Stock issuable upon exercise of
this Warrant. The Company will (A) procure, at its sole expense, the listing of the Shares and other securities issuable upon exercise of this Warrant, subject to issuance or notice of issuance on all stock exchanges on which the Common Stock
is then listed or traded and (B) maintain the listing of such Shares after issuance. The Company will use reasonable best efforts to ensure that the Shares may be issued without violation of any applicable law or regulation or of any
requirement of any securities exchange on which the Shares are listed or traded. Before taking any action which would cause an adjustment pursuant to Section 12 to reduce the Exercise Price below the then par value (if any) of the Common Stock,
the Company shall take any and all corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock at the Exercise Price as so
adjusted. 
 5. No Fractional Shares or Scrip. No fractional Shares or scrip representing fractional Shares shall be issued upon any
exercise of this Warrant. In lieu of any fractional Share to which the Warrantholder would otherwise be entitled, the Warrantholder shall be entitled to receive a cash payment equal to the Market Price of the Common Stock on the last trading day
preceding the date of exercise less the Exercise Price for such fractional share. 
 6. No Rights as Stockholders; Transfer Books.
This Warrant does not entitle the Warrantholder to any voting rights or other rights as a stockholder of the Company prior to the date of exercise hereof. The Company will at no time close its transfer books against transfer of this Warrant in any
manner which interferes with the timely exercise of this Warrant. 
 7. Charges, Taxes and Expenses. Issuance of certificates for
Shares to the Warrantholder upon the exercise of this Warrant shall be made without charge to the Warrantholder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificates, all of which taxes and
expenses shall be paid by the Company. 
 8. Transfer/Assignment. 
 (A) Subject to compliance with clause (B) of this Section 8, without obtaining the consent of the Company to assign or transfer this Warrant,
this Warrant and all rights hereunder are transferable, in whole or in part, upon the books of the Company by the registered holder hereof in person or by duly authorized attorney, and a new warrant shall be made and delivered by the Company, of the
same tenor and date as this Warrant but registered in the name of one or 

  

 7 

 
more transferees, upon surrender of this Warrant, duly endorsed, to the office of the Warrant Agent described in Section 3, and delivery of the form of
assignment annexed hereto, duly completed and executed. All expenses (other than stock transfer taxes) and other charges payable in connection with the preparation, execution and delivery of the new warrants pursuant to this Section 8 shall be
paid by the Company. 
 (B) Notwithstanding the foregoing, this Warrant and any rights hereunder, and any Shares issued upon exercise of this
Warrant, shall be subject to the applicable restrictions as set forth in Section 4.2 of the Investment Agreement. 
 (C) If and for so
long as required by the Investment Agreement, the Warrant Certificate shall contain a legend as set forth in Section 4.4 of the Investment Agreement. 
 9. Exchange and Registry of Warrant. The Warrant evidenced by this Warrant Certificate is exchangeable, upon the surrender hereof by the Warrantholder to the office of the Warrant Agent referred to in
Section 3, for a new warrant or warrants of like tenor and representing the right to purchase the same aggregate number of Shares. The Warrant Agent shall maintain a registry in which, subject to such reasonable regulations as it may prescribe,
it shall register Warrant Certificates (showing the name and address of the Warrantholder as the registered holder of this Warrant) and exchanges and transfers thereof. This Warrant may be surrendered for exchange or exercise, in accordance with its
terms, at the office of the Warrant Agent referred to in Section 3, and the Company shall be entitled to rely in all respects, prior to written notice to the contrary, upon such registry. 
 10. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Warrant Agent of evidence reasonably satisfactory to it and the Company
of the loss, theft, destruction or mutilation of the Warrant Certificate, and in the case of any such loss, theft or destruction, upon receipt of an indemnity or security reasonably satisfactory to the Warrant Agent and the Company, or, in the case
of any such mutilation, upon surrender and cancellation of the Warrant Certificate, the Company shall execute, and an authorized officer of the Warrant Agent shall manually countersign and deliver, in lieu of such lost, stolen, destroyed or
mutilated Warrant Certificate, a new Warrant Certificate of like tenor and representing the right to purchase the same aggregate number of Shares as provided for in such lost, stolen, destroyed or mutilated Warrant Certificate. 
 11. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted herein shall not be a business day, then such action may be taken or such right may be exercised on the next succeeding day that is a business day. 
 12. Adjustments and Other Rights. The Exercise Price and the number of Shares issuable upon exercise of this Warrant shall be subject to adjustment from time to time as follows; provided that no single
event shall cause an adjustment under more than one subsection of this Section 12 so as to result in duplication; provided, further, that, notwithstanding any provision of this Warrant to the contrary, any adjustment to the
Exercise Price of the Warrant shall be made to the extent (and only to the extent) that such adjustment would not cause or result in any Warrantholder and its Affiliates, collectively, being deemed to own, control or have 

  

 8 

 
the power to vote, for purposes of the BHC Act or the CIBC Act and any rules or regulations promulgated thereunder, Voting Securities which (assuming, for
this purpose only, full conversion and/or exercise of all such securities) would represent 25% or more of any class of Voting Securities outstanding at such time (excluding for purposes of this calculation any reduction in the percentage of Voting
Securities such Warrantholder and its Affiliates so owns, controls or has the power to vote resulting from transfers by Purchaser and its Affiliates of Securities purchased by Purchaser pursuant to the Investment Agreement). Any adjustment (or
portion thereof) prohibited pursuant to the foregoing proviso shall be postponed and implemented on the first date on which such implementation would not result in the condition described in such proviso. 
 (A) Stock Splits, Subdivisions, Reclassifications or Combinations. If the Company shall (i) declare and pay a dividend or make a distribution
on its Common Stock in shares of Common Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of shares, or (iii) combine or reclassify the outstanding shares of Common Stock into a smaller number
of shares, the number of Shares issuable upon exercise of this Warrant at the time of the record date for such dividend or distribution or the effective date of such subdivision, combination or reclassification shall be proportionately adjusted so
that the Warrantholder after such date shall be entitled to purchase the number of shares of Common Stock which such holder would have owned or been entitled to receive in respect of the shares of Common Stock subject to this Warrant after such date
had this Warrant been exercised immediately prior to such date. In such event, the Exercise Price in effect at the time of the record date for such dividend or distribution or the effective date of such subdivision, combination or reclassification
shall be adjusted to the number obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this Warrant before such adjustment and (2) the Exercise Price in effect immediately prior to the record or
effective date, as applicable with respect to the dividend, distribution, subdivision, reclassification or combination giving rise to this adjustment by (y) the new number of Shares issuable upon exercise of the Warrant determined pursuant to
the immediately preceding sentence. 
 (B) Other Distributions. In case the Company shall fix a record date for the making of a
distribution to all holders of shares of its Common Stock (i) of shares of any class other than its Common Stock, (ii) of evidence of indebtedness of the Company or any Company Subsidiary, (iii) of assets (excluding Ordinary Cash
Dividends or dividends or distributions referred to in Section 12(A)), or (iv) of rights or warrants, in each such case, the Exercise Price in effect prior thereto shall be reduced immediately thereafter to the price determined by
multiplying the Exercise Price in effect immediately prior to the reduction by the quotient of (x) the Market Price of the Common Stock on the last trading day preceding the first date on which the Common Stock trades regular way on The NASDAQ
Global Select Market without the right to receive such dividend or distribution, minus the Fair Market Value of the shares or evidences of indebtedness or assets or rights or warrants to be so distributed in respect of one share of Common Stock, and
(y) such Market Price on such date specified in clause (x); such adjustment shall be made successively whenever such a record date is fixed. In such event, the number of Shares issuable upon the exercise of this Warrant shall be increased to
the number obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the issuance giving rise to this
adjustment by (y) the new Exercise Price determined in accordance with the 

  

 9 

 
immediately preceding sentence. In the event that such distribution is not so made, the Exercise Price and the number of Shares issuable upon exercise of
this Warrant then in effect shall be readjusted, effective as of the date when the Board of Directors determines not to distribute such shares, evidences of indebtedness, assets, rights or warrants, as the case may be, to the Exercise Price that
would then be in effect and the number of Shares that would then be issuable upon exercise of this Warrant if such record date had not been fixed. 
 (C) Certain Repurchases of Common Stock. In case the Company effects a Pro Rata Repurchase of Common Stock, then the Exercise Price shall be reduced to the price determined by multiplying the Exercise Price in effect immediately
prior to the effective date of such Pro Rata Repurchase by a fraction of which the numerator shall be (i) the product of (x) the number of shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the
Market Price of a share of Common Stock on the trading day immediately preceding the first public announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata Repurchase, minus (ii) the aggregate purchase price of
the Pro Rata Repurchase, and of which the denominator shall be the product of (i) the number of shares of Common Stock outstanding immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so repurchased and
(ii) the Market Price per share of Common Stock on the trading day immediately preceding the first public announcement of such Pro Rata Repurchase. In such event, the number of shares of Common Stock issuable upon the exercise of this Warrant
shall be increased to the number obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the Pro
Rata Repurchase giving rise to this adjustment by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. 
 (D) Business Combinations. Subject to Section 13 of this Warrant, in case of any Business Combination or reclassification of Common Stock (other than a reclassification of Common Stock referred to in Section 12(A)), this
Warrant shall be exercisable for the number of shares of stock or other securities or property (including cash) to which a holder of the number of shares of Common Stock issuable upon exercise of this Warrant immediately prior to such Business
Combination or reclassification would have been entitled to receive upon such Business Combination or reclassification; and in any such case, if necessary, the provisions set forth herein with respect to the rights and interests thereafter of the
Warrantholder shall be appropriately adjusted so as to be applicable, as nearly as may reasonably be, to any shares of stock or other securities or property thereafter deliverable on the exercise of this Warrant. In determining the kind and amount
of stock, securities or the property receivable upon exercise of this Warrant following the consummation of such Business Combination, if the holders of Common Stock have the right to elect the kind or amount of consideration receivable upon
consummation of such Business Combination, then the Warrantholder shall have the right to make a similar election upon exercise of this Warrant with respect to the number of shares of stock or other securities or property which the Warrantholder
will receive upon exercise of this Warrant. 
 (E) Rounding of Calculations; Minimum Adjustments. All calculations under this
Section 12 shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest one-hundredth (1/100th) of a share, as the case may be. Any provision of this Section 12 to the contrary notwithstanding, no adjustment in the
Exercise Price or the number of Shares into 

  

 10 

 
which this Warrant is exercisable shall be made if the amount of such adjustment would be less than $0.01 or one-tenth (1/10th) of a share of Common
Stock, but any such amount shall be carried forward and an adjustment with respect thereto shall be made at the time of and together with any subsequent adjustment which, together with such amount and any other amount or amounts so carried forward,
shall aggregate $0.01 or 1/10th of a share of Common Stock, or more. 
 (F) Timing of Issuance of Additional Common Stock Upon Certain
Adjustments. In any case in which the provisions of this Section 12 shall require that an adjustment shall become effective immediately after a record date for an event, the Company may defer until the occurrence of such event
(i) issuing to the Warrantholder of this Warrant exercised after such record date and before the occurrence of such event the additional shares of Common Stock issuable upon such exercise by reason of the adjustment required by such event over
and above the shares of Common Stock issuable upon such exercise before giving effect to such adjustment and (ii) paying to such Warrantholder any amount of cash in lieu of a fractional share of Common Stock; provided, however,
that the Company upon request shall deliver to such Warrantholder a due bill or other appropriate instrument evidencing such Warrantholder’s right to receive such additional shares, and such cash, upon the occurrence of the event requiring such
adjustment. 
 (G) Adjustment for Unspecified Actions. If the Company takes any action affecting the Common Stock, other than actions
described in this Section 12, which in the opinion of the Board of Directors would materially and adversely affect the exercise rights of the Warrantholder, the Exercise Price for the Warrant and/or the number of Shares received upon exercise
of the Warrant shall be adjusted for the Warrantholder’s benefit, to the extent permitted by law, in such manner, and at such time, as such Board of Directors after consultation with the Warrantholder shall reasonably determine to be equitable
in the circumstances. Failure of the Board of Directors to provide for any such adjustment will be evidence that the Board of Directors has determined that it is equitable to make no such adjustments in the circumstances. 
 (H) Statement Regarding Adjustments. Whenever the Exercise Price or the number of Shares into which this Warrant is exercisable shall be adjusted
as provided in Section 12, the Company shall forthwith file at the office of the Warrant Agent referred to in Section 3, a statement showing in reasonable detail the facts requiring such adjustment and the Exercise Price that shall be in
effect and the number of Shares into which this Warrant shall be exercisable after such adjustment, and the Company shall also cause a copy of such statement to be sent by mail, first-class postage prepaid, to each Warrantholder at the address
appearing in the Warrant registry. 
 (I) Notice of Adjustment Event. In the event that the Company shall propose to take any action
of the type described in this Section 12 (but only if the action of the type described in this Section 12 would result in an adjustment in the Exercise Price or the number of Shares into which this Warrant is exercisable or a change in the
type of securities or property to be delivered upon exercise of this Warrant), the Company shall give notice to the Warrantholders, by first-class mail at their addresses in the Warrant registry, which notice shall specify the record date, if any,
with respect to any such action and the approximate date on which such action is to take place. Such notice shall also set forth the facts with respect thereto as shall be reasonably 

  

 11 

 
necessary to indicate the effect on the Exercise Price and the number, kind or class of shares or other securities or property which shall be deliverable
upon exercise of this Warrant. In the case of any action which would require the fixing of a record date, such notice shall be given at least 10 days prior to the date so fixed, and in case of all other action, such notice shall be given at least 15
days prior to the taking of such proposed action. Failure to give such notice, or any defect therein, shall not affect the legality or validity of any such action. 
 (J) No Impairment. The Company will not, by amendment of its articles of organization or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any
other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this
Warrant and the Warrant Agreement and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Warrantholder. 
 (K) Proceedings Prior to Any Action Requiring Adjustment. As a condition precedent to the taking of any action which would require an adjustment pursuant to this Section 12, the Company shall take any
action which may be necessary, including obtaining regulatory, NASDAQ or stockholder approvals or exemptions, in order that the Company may thereafter validly and legally issue as fully paid and nonassessable all shares of Common Stock that the
Warrantholder is entitled to receive upon exercise of this Warrant pursuant to this Section 12. 
 (L) Adjustment Rules. Any
adjustments pursuant to this Section 12 shall be made successively whenever an event referred to herein shall occur. If an adjustment in Exercise Price made hereunder would reduce the Exercise Price to an amount below par value of the Common
Stock, then such adjustment in Exercise Price made hereunder shall reduce the Exercise Price to the par value of the Common Stock. 
 13.
Fundamental Change. Upon the occurrence of a Preliminary Fundamental Change or Fundamental Change, and by delivering written notice thereof to the Warrant Agent, the Warrantholder may cause the Company to purchase any Warrant, in whole or in
part, acquired hereunder that the Warrantholder then holds, at the higher of (i) the Fair Market Value of the Warrant and (ii) a valuation based on a computation of the option value of the Warrant using Black-Scholes calculation methods
and making the assumptions described in the Black-Scholes methodology described in Annex 1. Payment by the Company to the Warrantholder of such purchase price shall be due upon the occurrence of the Fundamental Change, subject to the
mechanics described in the last paragraph of Annex 1. At the election of the Company, all or any portion of such purchase price may be paid in cash or shares of Common Stock valued at the Market Price of a share of Common Stock as of
(A) the last trading day prior to the date on which this payment occurs or (B) the first date of the announcement of such Preliminary Fundamental Change or Fundamental Change (whichever is less), so long as such payment does not cause
either (i) the Company to fail to comply with applicable NASDAQ requirements or the requirements of any other Governmental Entities or (ii) the Warrantholder being deemed to own, control or have the power to vote, for purposes of the BHC
Act or the CIBC Act and the rules and regulations promulgated thereunder, 25% or more of any class of Voting Securities of the Company outstanding at such time (assuming, for this purpose only, full conversion of all securities owned by such
Warrantholder and its Affiliates that are convertible into or exercisable 

  

 12 

 
for Voting Securities and excluding for purposes of this calculation any reduction in the percentage of Voting Securities such Warrantholder and its
Affiliates so owns, controls or has the power to vote resulting from transfers by Purchaser and its Affiliates of Securities purchased by Purchaser pursuant to the Investment Agreement) or otherwise be in violation of the ownership limitations under
the BHC Act or any other federal banking laws or regulations promulgated thereunder. To the extent that a payment in shares of Common Stock would exceed such limitations, once the maximum number of shares of Common Stock that would not exceed such
limitations has been paid, the remainder of such purchase price may be paid, at the option of the Company and provided the issuance of securities would not exceed such limitations, in the form of cash or equity securities of the Company having a
Fair Market Value on a fully-distributed basis equal to the value (determined as provided above) of the shares of Common Stock that would have been issued to the Warrantholder in the absence of the limitations described in this sentence. The Company
agrees that it will not take any action resulting in a Preliminary Fundamental Change or Fundamental Change in the absence of definitive documentation providing for such election right of the Warrantholder pursuant to this Section 13. Following
a Preliminary Fundamental Change, the Warrantholder shall not be restricted from engaging in any hedging or derivative program reasonably necessary in the opinion of the Warrantholder to secure the option value of this Warrant so adjusted. For the
avoidance of doubt, it is understood and agreed that (i) the reference to “equity securities” in this Section 13 includes preferred stock and (ii), if the Company were to elect to issue preferred stock in satisfaction of its
obligations under this Section 13, it could do so in the form of depositary shares for one or more shares of preferred stock as determined by it in its discretion. 
 14. Exchange for Preferred Stock. At any time prior to the receipt of the Stockholder Approvals, the Warrantholder may cause the Company to exchange this Warrant for a number of shares of Preferred Stock equal
to the quotient of (i) the value of this Warrant based on the higher of (A) the Fair Market Value of the Warrant and (B) a computation of the option value of the Warrant using the Black-Scholes calculation methods and making the
assumptions described in the Black-Scholes methodology described in Annex 1 and (ii) the lower of (A) $100,000 or (B) the Fair Market Value of a share of Preferred Stock, provided that the Company shall pay cash to the
Warrantholder in lieu of any fractional shares of Preferred Stock. The Company will at all times reserve and keep available, out of its authorized preferred stock, a sufficient number of shares of preferred stock for the purpose of providing for the
exchange of this Warrant for shares of Preferred Stock. It is understood and agreed that, in lieu of delivery shares of Preferred Stock pursuant to this Section 14, the Company may deliver depositary shares for shares of a new series of
preferred stock having rights, preferences and privileges identical to the Preferred Stock; provided, however, that unless otherwise agreed in writing by Purchaser, the Company may delivery depositary shares as provided in this
sentence only if the voting rights of a holder of a single depositary share for such new series of preferred stock shall be substantially identical to the voting rights of a holder of a single share of Preferred Stock. Notwithstanding any provision
of this Section 14 to the contrary, the Company shall not be required to deliver shares of Preferred Stock upon exchange of any Warrant to the extent that such delivery would cause or result in any Warrantholder and its Affiliates to be deemed
to own, control or have the power to vote, for purposes of the BHC Act or the CIBC Act and the rules and regulations promulgated thereunder, Voting Securities which (assuming full conversion and/or exercise of all such securities) would represent
25% or more of any class of Voting Securities of the Company outstanding at such time (excluding for purposes of this calculation any reduction in the 

  

 13 

 
percentage of Voting Securities such Warrantholder and its Affiliates so owns, controls or has the power to vote resulting from transfers by Purchaser and
its Affiliates of Securities purchased by Purchaser pursuant to the Investment Agreement). 
 15. Governing Law. This Warrant shall be
binding upon any successors or assigns of the Company. This Warrant will be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State (except to the
extent that mandatory provisions of Massachusetts law are applicable). The parties hereby irrevocably and unconditionally consent to submit to the exclusive jurisdiction of the state and federal courts located in the Borough of Manhattan, State of
New York for any actions, suits or proceedings arising out of or relating to this Warrant and the transactions contemplated hereby. 
 16.
Attorneys’ Fees. In any litigation, arbitration or court proceeding between the Company and the Warrantholder as the holder of this Warrant relating hereto, the prevailing party shall be entitled to reasonable attorneys’ fees and
expenses incurred in enforcing this Warrant. 
 17. Prohibited Actions. The Company agrees that it will not take any action which
would entitle the Warrantholder to an adjustment of the Exercise Price if the total number of shares of Common Stock issuable after such action upon exercise of this Warrant, together with all shares of Common Stock then outstanding and all shares
of Common Stock then issuable upon the exercise of all outstanding options, warrants, conversion and other rights, would exceed the total number of shares of Common Stock then authorized by its articles of organization. 
 18. Entire Agreement. This Warrant and the exhibits and attachments hereto, and the Investment Agreement, contain the entire agreement between the
parties with respect to the subject matter hereof and supersede all prior and contemporaneous arrangements or undertakings with respect thereto. 
 [ Remainder of page intentionally left blank] 
  

 14 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by a duly authorized officer.

 Dated: 
  

			
	 BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
		
	 Address:
	 	
	
	 Attest:

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 Countersigned: 
  

	
	 [                    ], as Warrant
Agent

	
	  

	 [                    ]

	
	 Address:

 [Signature Page to Warrant] 

 [Form Of Notice Of Exercise] 
 Date:                      
  

	TO:	[                    ] 

 Boston Private Financial Holdings, Inc. 
 RE: Election to
Subscribe for and Purchase Common Stock 
 The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby agrees to
subscribe for and purchase the number of shares of the Common Stock set forth below covered by such Warrant. The undersigned, in accordance with Section 3 of the Warrant, hereby agrees to pay the aggregate Exercise Price for such shares of
Common Stock in the manner set forth below. A new warrant evidencing the remaining shares of Common Stock covered by such Warrant, but not yet subscribed for and purchased, if any, should be issued in the name set forth below. If the new warrant is
being transferred, an opinion of counsel is attached hereto with respect to the transfer of such warrant. 
 Number of Shares of Common
Stock:                      
 Method of Payment of Exercise Price (note if cashless exercise pursuant to Section 3(ii) of the Warrant):        
                                         

 Name and Address of Person to be 
 Issued New
Warrant:                                       
                                         
                      
  

			
	 Holder:
	 	  

		
	 By:
	 	  

		
	 Name:
	 	  

		
	 Title:
	 	  

 [Form of Notice of Exercise] 

 [Form of Assignment To Be Executed If Warrantholder 
 Desires To Transfer Warrants Evidenced Hereby] 
 FOR VALUE RECEIVED
                                         
                    hereby sells, assigns and transfers unto 
  

					
	  
	 		  	
	 (Please print name)
	 		  	(Please insert social security or other identifying number)
			
	  
	 		  	
	 Address
	 		  	
			
	  
	 		  	
	 City, including zip code)
	 		  	

 the Warrants represented by the within Warrant Certificate and does hereby irrevocably constitute and appoint
                     as attorney to transfer said Warrant Certificate on the books of the Warrant Agent with full power of substitution in the
premises. 
  

					
		 		  	  

		 		  	 Signature
 (Signature must
conform in all respects to name of holder as specified on the face of the Warrant Certificate and must bear a signature guarantee by a bank, trust company or member broker of the New York, Midwest or Pacific Stock Exchange)

	Signature Guaranteed	 		  	
	  
	 		  	

 [Form of Assignment] 

 ANNEX 1 
 Black-Scholes Assumptions 
 For the purpose of this Annex 1: 
 “Acquiror” means (A) the third party that has entered into definitive document for a transaction, or (B) the offeror in the
event of a tender or exchange offer, which could reasonably result in a Fundamental Change upon consummation. 
  

			
	Underlying Security Price:	  	 •     In the event of a merger or acquisition, (A) in the event of an “all cash” deal, the cash per
share offered to the Company’s stockholders by the Acquiror; (B) in the event of an “all stock” deal, (1) in the event of a fixed exchange ratio transaction, the product of (i) the average of the Market Price of the Acquiror’s
common stock for the ten trading day period ending on the day preceding the date of the Preliminary Fundamental Change and (ii) the number of Acquiror’s shares being offered for one share of Common Stock and (2) in the event of a fixed value
transaction, the value offered by the Acquiror for one share of Common Stock; (C) in the event of a transaction contemplating various forms of consideration for each share of Common Stock, the cash portion, if any, shall be valued as clause (A)
above and the stock portion shall be valued as clause (B) above and any other forms of consideration shall be valued by the Board of Directors of the Company in good faith, without applying any discounts to such consideration.

		
		  	 •     In the event of all other Fundamental Change events, the average of the Market Price of the Common
Stock for the five trading day period beginning on the date of the Preliminary Fundamental Change.

		
		  	 •     In the event of an exchange for Preferred Stock pursuant to Section 14 of the Warrant, the average of
the Market Price of the Common Stock for the five trading day period ending on the trading day prior to the date on which this Warrant and the Notice of Exercise are delivered to the Company.

		
	Exercise Price:	  	The Exercise Price as adjusted and then in effect for the Warrant.

			
	Dividend Rate:	  	The Company’s annualized dividend yield as of (i) the date of the Preliminary Fundamental Change in the event of a Fundamental Change or (ii) the trading day prior to the date on which
this Warrant and the Notice of Exercise are delivered to the Company in the event of an exchange for Preferred Stock (the “Reference Date”).
		
	Interest Rate:	  	The applicable U.S. 5-year treasury note risk free rate as of the Reference Date.
		
	Model Type:	  	Black-Scholes
		
	Exercise Type:	  	American
		
	Put or Call:	  	Call
		
	Trade Date:	  	The Reference Date
		
	Expiration Date:	  	Expiration Time
		
	Settle Date:	  	The Reference Date
		
	Exercise Delay:	  	0
		
	Volatility:	  	The average daily volatility over the previous six months for the Common Stock as listed by Bloomberg L.P., as of the Reference Date

 Such valuation of the Warrant based on the Black-Scholes methodology shall not be discounted in any way. If the
Warrantholder disputes such Black-Scholes valuation pursuant to this Annex 1 as calculated by the Company, the Company and the Warrantholder will choose a mutually-agreeable firm to compute the valuation of the Warrant using the guidelines
above, and such valuation shall be final. The fees and expenses of such firm shall be borne equally by the Company and the Warrantholder. 
 The Company
covenants that it will not close a Fundamental Change transaction or otherwise facilitate the closing of a tender or exchange offer as referenced above until giving the Warrantholder at least five business days to sell or distribute the Common Stock
to be received in an exchange and will cooperate with the Warrantholder to ensure that there is an effective registration statement available to facilitate such a sale during such five business day period or an effective opportunity is provided in
the case of a tender or exchange offer as referenced above to tender such shares in to the offer.

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