Document:

Exhibit 10.4

 

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

SUPPLEMENTAL SAVINGS PLAN

 

(Effective as of
April 1, 2005)

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  I - ESTABLISHMENT AND DEFINITIONS

  	
   

  	
  1

  
	
  Section 1.1.   Establishment
  of Plan and Effective Date

  	
   

  	
  1

  
	
  Section 1.2.   Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II - PURPOSE AND CONSTRUCTION 

  	
   

  	
  6

  
	
  Section
  2.1.   Purpose

  	
   

  	
  6

  
	
  Section 2.2.   Unfunded
  Plan

  	
   

  	
  6

  
	
  Section 2.3.   Employment
  Rights

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  III - ELIGIBILITY AND DEFERRAL

  	
   

  	
  7

  
	
  Section
  3.1.   Eligibility and Deferral Election

  	
   

  	
  7

  
	
  Section
  3.2.   Deferral Contributions and Employer Matching
  Contributions

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV - VESTING

  	
   

  	
  9

  
	
  Section
  4.1.   Deferral Contribution Account

  	
   

  	
  9

  
	
  Section 4.2.   Employer
  Matching Contribution Account

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V - PAYMENT OF BENEFITS

  	
   

  	
  10

  
	
  Section 5.1.   Distribution
  of Accounts

  	
   

  	
  10

  
	
  Section
  5.2.   Method of Distribution – Grandfathered Accounts

  	
   

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI - INVESTMENT FUNDS

  	
   

  	
  11

  
	
  Section
  6.1.   Investment of Contributions

  	
   

  	
  11

  
	
  Section
  6.2.   Investment Transfers

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII –  ADMINISTRATION

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section
  7.1.   Administrator

  	
   

  	
  12

  
	
  Section
  7.2.   Expenses

  	
   

  	
  12

  
	
  Section
  7.3.   Assistance

  	
   

  	
  12

  

 

 

	
  Section
  7.4.   Administration

  	
   

  	
  12

  
	
  Section
  7.5.   Appeals from Denial of Claims

  	
   

  	
  13

  
	
  Section
  7.6.   Notice of Address and Missing Persons

  	
   

  	
  14

  
	
  Section
  7.7.   Data and Information for Benefits

  	
   

  	
  14

  
	
  Section
  7.8.   Indemnity for Liability

  	
   

  	
  15

  
	
  Section
  7.9.   Effect of a Mistake

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII -  AMENDMENT AND TERMINATION

  	
   

  	
  16

  
	
  Section
  8. l.   Amendment and Termination

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX -  MISCELLANEOUS PROVISIONS

  	
   

  	
  17

  
	
  Section
  9.1.   Unsecured Benefit

  	
   

  	
  17

  
	
  Section
  9.2.   Severability

  	
   

  	
  17

  
	
  Section
  9.3.   Applicable Law

  	
   

  	
  17

  
	
  Section
  9.4.   Headings of Articles and Sections

  	
   

  	
  17

  

 

 

TALECRIS
BIOTHERAPEUTICS HOLDINGS CORP.

SUPPLEMENTAL
SAVINGS PLAN

 

ARTICLE
I

 

ESTABLISHMENT
AND DEFINITIONS

 

Section 1.1.
Establishment of Plan and Effective Date. Talecris Biotherapeutics,
Holdings Corp. (“the Company”), hereby establishes this unfunded nonqualified
deferred compensation plan, which shall be known as the Talecris
Biotherapeutics Holdings Corp. Supplemental Savings Plan (the “Plan”),
effective as of April 1, 2005 (the “Effective Date). The Plan is a successor to
the Bayer Supplemental Savings Plan (the “Prior Plan”), as it related to
Participants (as defined herein) formerly employed by Bayer Corporation.

 

Section 1.2.
Definitions. As used in this Plan, initially capitalized terms which are
not otherwise defined herein shall have the meaning given to them in the
Qualified Plan. The following words and phrases shall have the meanings
assigned to them herein, unless the context otherwise requires.

 

“Account” means the
bookkeeping account established for each Participant who is entitled to a
benefit under this Plan and will consist of a Deferral Contribution Account to
record Deferral Contributions (and allocable earnings) and an Employer Matching
Contribution Account to record Employer Matching Contributions (and allocable
earnings). An Account is established only for purposes of determining benefits
hereunder and not to segregate assets or to identify assets that may or must be
used to satisfy benefits. An Account will be credited with the amounts set
forth in Article III hereof and will be credited or debited to reflect deemed investment
results under Article VII hereof. An Account will also record amounts deferred
and matching contributions credited to the bookkeeping account under the Prior
Plan as of the Effective Date, in each case with allocable earnings thereon. Such
amounts deferred and matching contributions will be recorded in the
Grandfathered Deferral Contribution Account, to the extent they represent
Grandfathered Deferral Contributions, and in the Grandfathered 

 

1

 

Employer Matching
Contribution Account, to the extent they represent Grandfathered Employer
Matching Contributions.

 

“Annual Additions” shall
have the same meaning as provided under the Qualified Plan.

 

“Beneficiary” shall have
the same meaning as in the Qualified Plan. The person or person designated by
the Participant as his/her Beneficiary(ies) under the Qualified Plan will be
treated as the Participant’s Beneficiary(ies) under this Plan. Absent a valid
Beneficiary designation under the Qualified Plan, the Beneficiary provisions
under the Qualified Plan shall be used to determine the Participant’s
Beneficiary.

 

“Board” means the Board
of Directors of the Company.

 

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

 

“Company” means Talecris
Biotherapeutics Holding Corp., and each of the affiliates of that company that
are participants in the Plan.

 

“Compensation” means an
Eligible Employee’s base remuneration from an Employer received during a Plan
Year. For purposes of this provision —

 

(a)           Compensation shall
include any overtime pay, commissions, shift differentials, bilingual
adjustments, and bonus payments.

 

(b)           Compensation shall
include any Eligible Employee deferrals pursuant to a cash or deferred
arrangement under Section 401(k) of the Code and any amounts excluded from
wages by reason of an election to reduce wages in order to receive benefits
under Section 125 of the Code.

 

(c)           Compensation shall not
include payments by reason of termination of employment (such as severance
pay), deferrals or payments under any nonqualified deferred compensation
arrangement, payments under any long-term incentive 

 

2

 

compensation program,
special awards not specifically included under paragraph (a), noncash compensation,
reimbursement of expenses, foreign service premiums, tax equalization payments,
attendance and safety awards, or any other unearned income.

 

“Deferral Contribution”
means the amount of an Eligible Employee’s Excess Compensation deferred under
the terms of this Plan (not to exceed 18% of Excess Compensation) and credited
to his/her Account.

 

“Deferral Election Form”
means the document whereby an Eligible Employee elects to defer a percentage of
his/her Excess Compensation or to suspend the deferral under this Plan and
elects a method of distribution described in Section 5.2. Such form shall set
forth the amount/percent of Excess Compensation that the Eligible Employee
elects to defer, [the method of distribution elected by the Eligible Employee] and
such other information as the Plan Administrator may require.

 

“Effective Date” has the
meaning contained in Section 1.1.

 

“Eligible Employee” means
an individual (i) who is hired at or promoted to executive level E05 or
above or any other employee who has been designated by the Plan Administrator
as being eligible to defer amounts under the Plan for a Plan Year, and
(ii) who elects to and actually contributes the maximum amount allowable
under the Qualified Plan.

 

“Employer” means the
Company or any affiliate of the Company which elects to become a party to the
Plan, with the approval of the Company, by adopting the Plan for the benefit of
its Eligible Employees in the manner described in the Plan.

 

“Employer Matching
Contribution” means the contribution, if any, that is credited to a Participant’s
Account under Section 3.2. The calculation of the Employer Matching
Contribution under the Plan shall be the same as determined under the Qualified
Plan. Initially, this shall be a 100% matching contribution of Deferral
Contributions up to 2% of a Participant’s Excess Compensation deferred during
each payroll period, and 50% 

 

3

 

matching contribution of
Deferral Contributions on the next 4% of a Participant’s Excess Compensation
deferred during each payroll period.

 

“ERISA” means the
Employee Retirement Income Security Act of 1974, as amended.

 

“Excess Compensation”
means that portion of an Eligible Employee’s Compensation for a Plan Year in
excess of that which may be taken into account under the Qualified Plan as a
result of the limitation on Compensation that may be considered under Code
Section 401(a)(17) or as a result of Excess Contributions.

 

“Excess Contributions”
means Annual Additions for a Plan Year in excess of that permitted under the
Qualified Plan as a result of Code Section 402(g) or Code Section 415(c).

 

“Grandfathered Deferral
Contribution” means the amount of an “eligible employee’s” “excess compensation”
(both as defined under the terms of the Prior Plan) deferred under the terms of
the Prior Plan prior to January 1, 2005, that was not, at the time of such
deferral, subject to a substantial risk of forfeiture or a requirement to
perform further services.

 

“Grandfathered Employer
Matching Contribution” means the contribution, if any, credited under the Prior
Plan with respect to a Grandfathered Deferral Contribution and not at the time
of such contribution subject to a substantial risk of forfeiture.

 

“Investment Funds” shall
have the same meaning as provided under the Qualified Plan.

 

“Participant” means an
Eligible Employee who has deferred amounts under the Plan.

 

“Plan” means this
Talecris Biotherapeutics Holding Corp. Supplemental Savings Plan, as such may
be amended.

 

4

 

“Plan Administrator”
means Talecris Biotherapeutics Holdings Corp. or its delegate.

 

“Plan Year” means the
calendar year, except that the first Plan Year shall begin on April 1, 2005 and
end on the next following December 31.

 

“Prior Plan” has the
meaning contained in Section 1.1.

 

“Qualified Plan” means
the Talecris Biotherapeutics Holdings Corp. Employee Savings Plan, as amended
from time to time.

 

“Valuation Date” shall
have the same meaning as provided under the Qualified Plan.

 

5

 

ARTICLE II

 

PURPOSE AND
CONSTRUCTION

 

Section 2.1.
Purpose. The Employer currently maintains the Qualified Plan for the
benefit of its employees. The Qualified Plan is designed to satisfy all of the
requirements of Code Section 401(a). The Qualified Plan is subject to annual
limitations under Code Sections 401(a)(17), 402(g) and 415 which reduce the
amount of Annual Additions that may be allocated to the accounts of certain
employees of the Employer under the Qualified Plan.

 

The purpose of this Plan
is to supplement the Qualified Plan by permitting Eligible Employees to defer
Excess Compensation and to receive an Employer Matching Contribution with
respect to such Deferral Contributions.

 

Section 2.2.
Unfunded Plan. This Plan is intended to be an unfunded, nonqualified
retirement plan for purposes of Code Sections 83, 401(a), 402(b), 404(a)(5) and
451, and an unfunded deferred compensation plan maintained primarily for a
select group of management or highly compensated employees for purposes of
ERISA Sections 201(2), 301(a)(3) and 401(a)(1).

 

Section 2.3.
Employment Rights. Establishment of the Plan shall not be construed to
give any Participant the right to be retained by the Employer or to any
benefits not specifically provided by the Plan.

 

6

 

ARTICLE
III

 

ELIGIBILITY AND
DEFERRAL

 

Section 3.1.
Eligibility and Deferral Election. All Eligible Employees affected by
the limitations described in Section 2.1 are automatically eligible to
participate in this Plan. In addition, prior to the beginning of each Plan
Year, the Plan Administrator may designate any other employees of the Employer
who shall be eligible to participate in the Plan for the Plan Year. Each Eligible
Employee must complete a Deferral Election Form and file it with the Plan
Administrator in accordance with the procedures prescribed by the Plan
Administrator. Each Eligible Employee may elect to reduce his/her Excess
Compensation by whole percentages up to 18%, and to have the amount by which
his/her Excess Compensation is reduced reflected in his/her Account under the
Plan.

 

A Participant may not,
during any Plan Year, change his/her Deferral Contribution election for that
Plan Year. Notwithstanding the foregoing, if the Participant demonstrates to
the satisfaction of the Plan Administrator that he has experienced an
unforeseeable emergency, as that term is defined in Code
Section 409A(a)(2)(B)(ii)(I), and can substantiate such unforeseeable emergency,
he may suspend any additional Deferral Contributions to the Plan for the
remainder of the Plan Year. If such a suspension occurs, the Participant may
not make another Deferral Contribution to the Plan until the following Plan
Year.

 

Section 3.2.
Deferral Contributions and Employer Matching Contributions. [In any Plan
Year] in which an Eligible Employee has Excess Compensation, the Employer will
credit the Participant’s Account under this Plan with an amount equal to (i)
the Deferral Contribution which the Participant has elected pursuant to his/her
Deferral Election Form, (ii) the amount of Employer Matching Contributions
applicable to such Deferral Contribution and (iii) the amount of income (or
loss) that would have been credited to such Account based on the Participant’s
selection of Investment Funds.

 

7

 

The Plan Administrator
may adopt rules concerning the administration of this Section and the frequency
and timing of crediting a Participant’s Account.

 

8

 

ARTICLE IV

 

VESTING

 

Section 4.1.
Deferral Contribution Account. A Participant shall at all times be fully
vested and have a nonforfeitable interest in his/her Deferral Contribution
Account.

 

Section 4.2.
Employer Matching Contribution Account. A Participant will be fully
vested and have a nonforfeitable interest in his/her Employer Matching
Contribution Account unless the Senior Vice President Human Resources
determines, in his or her sole discretion, that the Participant engaged in a
willful, deliberate or gross act of commission or omission which is
substantially injurious to the business, financial position or reputation of
the Company or any affiliate.

 

9

 

ARTICLE V

 

PAYMENT
OF BENEFITS

 

Section 5.1.
Distribution of Accounts. Upon the Participant’s separation from service
with the Company or any affiliate of the Company, there shall be distributed to
the Participant, or to his/her Beneficiary in case of his/her death, a
single sum cash distribution equal to the Participant’s Deferral Contribution
Account and, if vested, his/her Employer Matching Contribution Account,
determined as of the Valuation Date coincident with or next following the date
of such cessation of employment. If the Participant’s employment originated at
a Company affiliate outside the United States, then distribution may be made
upon cessation of such Participant’s employment with the Company and all U.S.
affiliates.

 

Section 5.2.
Method of Distribution – Grandfathered Accounts. Distributions from a
Participant’s Grandfathered Deferral Contribution Account and Grandfathered
Employer Matching Contribution Account will be made in accordance with the
terms of the Prior Plan.

 

10

 

ARTICLE
VI

 

INVESTMENT FUNDS

 

Section 6 1.
Investment of Contributions. Each Participant may elect to have the
value credited to his/her Account invested in increments of one percent of the
total Account balance in any one or more of the Investment Funds available
under the Qualified Plan. Such elections may be made and changed in accordance
with procedures adopted by the Plan Administrator.

 

Section 6.2.
Investment Transfers. Each Participant may elect to have the value directed
to an Investment Fund transferred to any one or more other Investment Fund(s).
Such election shall be in increments of one percent or any dollar amount and
shall be made in accordance with procedures adopted by the Plan Administrator.

 

11

 

ARTICLE VII

 

ADMINISTRATION

 

Section 7.1.
Administrator. The Company shall be the “administrator” of the Plan. It
shall also be the Plan Administrator for purposes of Section 7.5 of the
Plan.

 

Section 7.2.
Expenses. All expenses incurred in the administration of the Plan shall
be paid for by the Employer. Such expenses shall include any expenses incident
to the administration of the Plan, including, but not limited to, fees of
accountants, counsel, and other specialists.

 

Section 7.3.
Assistance. The Company may appoint one or more individuals and delegate
such of its power and duties as it deems desirable to any such individual, in
which case every reference herein made to the Company shall be deemed to mean
or include the individuals as to matters within their jurisdiction. Such
individuals shall be such officers or other employees of the Employers and such
other persons as the Company may appoint.

 

Section 7.4
Administration. The Company shall be responsible for the administration
of the Plan. The Company shall have all such powers as may be necessary to
carry out the provisions hereof and may, from time to time, establish rules for
the administration of the Plan and the transaction of the Plan’s business. In
making any such determination or rule, the Company shall pursue uniform
policies as from time to time established and shall not discriminate in favor
of or against any Participant. The Company shall have the exclusive right to
make any finding of fact necessary or appropriate for any purpose under the
Plan including, but not limited to, the determination of the eligibility for
and the amount of any benefit payable under the Plan. The Company shall have
the exclusive discretionary right to interpret the terms and provisions of the
Plan and to determine any and all questions arising under the Plan or in
connection with the administration thereof, including, without limitation, the
right to remedy or resolve possible ambiguities, inconsistencies, or omissions,
by general rule or particular decision. The Company shall make, or cause to be
made, all reports or 

 

12

 

other filings necessary
to meet both the reporting and disclosure requirements and other filing
requirements of ERISA which are the responsibility of “plan administrators”
under ERISA. To the extent permitted by law, all findings of fact,
determinations, interpretations, and decisions of the Company or its delegee
shall be conclusive and binding upon all persons having or claiming to have any
interest or right under the Plan.

 

Section 7.5.
Appeals from Denial of Claims.

 

(a)           Denial of Claims.
If any claim for benefits under the Plan is wholly or partially denied, the
claimant shall be given notice in writing within a reasonable period of time
after receipt of the claim by the Plan (not to exceed 90 days after receipt of
the claim or, if special circumstances require an extension of time, written
notice of the extension shall be furnished to the claimant and an additional 90
days will be considered reasonable) by registered or certified mail of such
denial. The notice of denial shall be written in a manner calculated to be
understood by the claimant and shall set forth the following information:

 

(1)           The specific reasons for
such denial;

 

(2)           Specific
reference to pertinent Plan provisions on which the denial is based;

 

(3)           A
description of any additional material or information necessary for the
claimant to perfect the claim and an explanation of why such material or information
is necessary; and

 

(4)           An explanation of the
Plan’s claim review procedure.

 

(b)           Deemed Denial.
If a claimant does not receive a notice of denial within 180 days after receipt
of the claim, the claim will be deemed to have been denied and the claimant
will be able to request a review of the denial pursuant to subsection (c).

 

13

 

(c)           Review of Denial.
A claimant whose claim has been denied under subsection (a) or whose claim is
deemed to have been denied under subsection (b) may request a review by the
Plan Administrator of the decision denying the claim. A claimant may request a
review by filing with the Plan Administrator a written request for such review.
The request must be filed within 60 days after the notice of denial under
subsection (a) is received, or within 60 days after a denial is deemed to have
occurred under subsection (b). The claimant may review pertinent documents, and
submit issues and comments in writing within the same 60-day period. If such
request is so filed, such review shall be made by the Plan Administrator within
60 days after receipt of such request, unless special circumstances require an
extension of time for processing, in which case the claimant shall be so
notified and a decision shall be rendered as soon as possible, but not later
than 120 days after receipt of the request for review. The Participant or
beneficiary shall be given written notice of the decision resulting from such
review, which notice shall include specific reasons for the decision, written
in a manner calculated to be understood by the claimant, and specific
references to the pertinent Plan provisions on which the decision is based.

 

Section 7.6.
Notice of Address and Missing Persons. Each person entitled to benefits
under the Plan must file with the Plan Administrator, in writing, his/her post
office address and each change of post office address. Any communication,
statement, or notice addressed to such a person at his/her latest reported post
office address will be binding upon him for all purposes of the Plan and
neither the Plan Administrator nor the Employer shall be obliged to search for
or ascertain his/her whereabouts. In the event that such person cannot be
located, the Plan Administrator may direct that such benefit and all further
benefits with respect to such person shall be discontinued and forfeited, and
all liability for the payment thereof shall terminate; provided, however, that
in the event of the subsequent reappearance of the Participant or Beneficiary
prior to termination of the Plan, the benefits which were due and payable
(without interest) and which such person missed shall be paid in a single sum
and the future benefits due such person shall be reinstated in full.

 

Section 7.7.
Data and Information for Benefits. All persons claiming benefits under
the Plan must furnish to the Plan Administrator or its designated agent such 

 

14

 

documents, evidence, or
information as the Plan Administrator or its designated agent consider
necessary or desirable for the purpose of administering the Plan; and such
person must furnish such information promptly and sign such documents as the
Plan Administrator or its designated agent may require before any benefits
become payable under the Plan.

 

Section 7.8.
Indemnity for Liability. The Company shall indemnify any individual who
is directed by the Company to carry out responsibilities and duties imposed by
this Plan against any and all claims, losses, damages, and expenses, including
counsel fees, approved by the Company, and any liability, including any amounts
paid in settlement with the Company’s approval, arising from the individual’s
action or failure to act, in connection with such person’s responsibilities and
duties under the Plan, except when the same is judicially determined to be
attributable to the gross negligence or willful misconduct of such person.

 

Section 7.9.
Effect of a Mistake. In the event of a mistake or misstatement as to the
eligibility, participation, or service of any Participant, or the amount of
payments made or to be made to a Participant or Beneficiary, the Plan
Administrator shall, if possible, cause to be withheld or accelerated or
otherwise make adjustment of such amounts of payments as will in its sole
judgment result in the Participant or Beneficiary receiving the proper amount
of payments under this Plan.

 

15

 

ARTICLE VIII

 

AMENDMENT
AND TERMINATION

 

Section 8.1.
Amendment and Termination.

 

(a)           The Company does hereby
reserve the right to amend, modify, or terminate the Plan at any time. The Plan
may be amended by the action of the Board, which shall be evidenced in writing.
The Board may delegate this authority to such individuals or committees as the
Board deems appropriate.

 

(b)           While each Employer
contemplates carrying out the provisions of the Plan indefinitely with respect
to its Employees, no Employer shall be under any obligation or liability
whatsoever to maintain the Plan for any minimum or other period of time.

 

(c)           Upon any termination of
the Plan in its entirety, or with respect to any Employer, the Company shall
give written notice thereof to the Participants, Plan Administrator, and any
Employer involved.

 

(d)           Except as provided by
law, upon any termination of the Plan, no Employer with respect to whom the
Plan is terminated (including the Company) shall thereafter be under any
obligation, liability, or responsibility whatsoever to make any contribution or
payment to the Plan, any Participant, any Beneficiary, or any other person, for
any purpose whatsoever under or in connection with the Plan.

 

16

 

ARTICLE IX

 

MISCELLANEOUS
PROVISIONS

 

Section 9.1.
Unsecured Benefit . A Participant’s right to benefits under the Plan
shall at all times be merely an unfunded and unsecured promise to be paid by
the Employer. The Employer may, however, establish a grantor trust for the
purpose of assisting the Employer in setting aside assets to fund its unsecured
obligations under the Plan.

 

Section 9.2.
Severability. If a provision of this Plan shall be held invalid or
illegal, the illegality or invalidity shall not affect the remaining parts of
the Plan, and the Plan shall be construed and enforced as if the illegal or
invalid provision had not been included in this Plan and the Employer shall
have the privilege and opportunity to correct and remedy any illegality or
invalidity by amendment.

 

Section 9.3.
Applicable Law. The Plan and all rights hereunder shall be governed by
and construed in accordance with the laws of the State of North Carolina to the
extent such laws have not been preempted by applicable federal law.

 

Section 9.4.
Headings of Articles and Sections. The headings and subheadings included
in this Plan are included for convenience of reference only and shall not be
used in the construction or interpretation of any matter.

 

IN WITNESS WHEREOF, the
Employer has caused this instrument to be executed and attested by its
officers, all duly authorized, and has caused its corporate seal to be hereunto
affixed all this           day
of                                  ,
2005, effective as of April 1, 2005.

 

	
  ATTEST:

  	
   

  	
  TALECRIS
  BIOTHERAPEUTICS

  
	
   

  	
   

  	
  HOLDINGS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  	
   

  
								

 

17Exhibit
10.5

 

TALECRIS
BIOTHERAPEUTICS HOLDINGS CORP.

SPECIAL
RECOGNITION BONUS PLAN

 

(Effective as of
October 1, 2006)

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE I

  	
  1

  
	
   

  	
   

  
	
  SECTION
  1.1. ESTABLISHMENT OF PLAN AND EFFECTIVE DATE

  	
  1

  
	
  SECTION
  1.2. DEFINITIONS

  	
  1

  
	
   

  	
   

  
	
  ARTICLE II

  	
  5

  
	
   

  	
   

  
	
  ARTICLE III

  	
  6

  
	
   

  	
   

  
	
  SECTION
  3.1. 2006 SPECIAL RECOGNITION BONUS

  	
  6

  
	
  SECTION
  3.2. ADDITIONAL SPECIAL RECOGNITION BONUS COMPENSATION

  	
  6

  
	
  SECTION
  3.3. ACCELERATION AND CHANGE OF CONTROL

  	
  7

  
	
   

  	
   

  
	
  ARTICLE IV

  	
  7

  
	
   

  	
   

  
	
  SECTION
  4.1. ADMINISTRATOR

  	
  7

  
	
  SECTION
  4.2. EXPENSES

  	
  7

  
	
  SECTION
  4.3. ASSISTANCE

  	
  8

  
	
  SECTION
  4.4 ADMINISTRATION

  	
  8

  
	
  SECTION
  4.5. APPEALS FROM DENIAL OF CLAIMS

  	
  9

  
	
  Denial
  of Claims

  	
  9

  
	
  Deemed
  Denial

  	
  9

  
	
  Review
  of Denial

  	
  9

  
	
  SECTION
  4.6. NOTICE OF ADDRESS AND MISSING PERSONS

  	
  10

  
	
  SECTION
  4.7. DATA AND INFORMATION FOR BENEFITS

  	
  11

  
	
  SECTION
  4.8. INDEMNITY FOR LIABILITY

  	
  11

  
	
  SECTION
  4.9. EFFECT OF A MISTAKE

  	
  11

  
	
   

  	
   

  
	
  ARTICLE V

  	
  12

  
	
   

  	
   

  
	
  ARTICLE VI

  	
  12

  
	
   

  	
   

  
	
  SECTION
  6.1. UNSECURED BENEFIT; NO ASSIGNMENT OF BENEFIT

  	
  12

  
	
  SECTION
  6.2. NO EMPLOYMENT RIGHTS

  	
  12

  
	
  SECTION
  6.3. SEVERABILITY

  	
  12

  
	
  SECTION
  6.4. APPLICABLE LAW

  	
  13

  
	
  SECTION
  6.5. HEADINGS OF ARTICLES AND SECTIONS

  	
  13

  

 

 

TALECRIS
BIOTHERAPEUTICS HOLDINGS CORP.

SPECIAL
RECOGNITION BONUS PLAN

 

ARTICLE I

 

ESTABLISHMENT
AND DEFINITIONS

 

Section
1.1.           Establishment
of Plan and Effective Date. Talecris Biotherapeutics Holdings Corp.
(the “Corporation”), hereby establishes this unfunded nonqualified bonus
compensation plan, which shall be known as the Talecris Biotherapeutics
Holdings Corp. Special Recognition Bonus Plan (the “Plan”), effective as of
October 1, 2006 (the “Effective Date”).

 

Section
1.2.           Definitions.
The following words and phrases shall have the meanings assigned to them
herein, unless the context otherwise requires.

 

“Beneficiary” shall mean
the person, persons or entity designated by the Participant on a Beneficiary
Designation Form filed with the Administrator. If a Participant dies without
having filed an executed Beneficiary Designation Form, if the Participant is
married on the date of his or her death, the Participant’s Beneficiary shall be
his or her surviving spouse. If the Participant is not married on the date of
his or her death, the Participant’s Beneficiary shall be his or her estate.

 

“Board” means the Board
of Directors of the Corporation, or any committee of the Board to which the
Board shall delegate some or all of its duties and powers under the plan.

 

 

“Bonus Compensation”
means incentive compensation payable to Participants in accordance with
Sections 3.1 and 3.2 of the Plan.

 

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

 

“Change of Control” means
the occurrence of any one of the following events:

 

(i) any Person, other
than Talecris Holdings LLC, Cerberus-Plasma Holdings LLC and Ampersand Ventures
or any of their respective affiliates or other affiliates of Cerberus Capital
Management, L.P. (each a “Permitted Investor”), is or becomes a “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Corporation representing (A) more than 30% of
the total voting power of the Corporation’s then outstanding securities
generally eligible to vote for the election of directors (the “Corporation
Voting Securities”) and (B) a greater percentage of the then outstanding
Corporation Voting Securities that are than held by all the Permitted Investors
in the aggregate (a “Stock Purchase Event”); provided, however,
that any of the following acquisitions shall not be deemed to be a Change of
Control:  (1) by the Corporation or
any subsidiary or affiliate, (2) by any employee benefit plan (or related
trust) sponsored or maintained by the Corporation or any subsidiary or
affiliate, (3) by any underwriter temporarily holding securities pursuant to an
offering of such securities, or (4) pursuant to a Non-Qualifying
Transaction (as defined in paragraph (ii));

 

(ii) the consummation of
a merger, consolidation, statutory share exchange or similar form of corporate
transaction involving the Corporation or any of its subsidiaries or affiliates
(a “Business Combination Event”), unless immediately following such
Business Combination Event:

 

2

 

(A) more than 50% of the
total voting power of (x) the corporation resulting from such Business
Combination Event (the “Surviving Corporation”), or (y) if
applicable, the ultimate parent corporation that directly or indirectly has
beneficial ownership of a majority of the voting securities eligible to elect
directors of the Surviving Corporation (the “Parent Corporation”), is
represented by Corporation Voting Securities that were outstanding immediately
prior to such Business Combination Event (or, if applicable, is represented by
shares into which such Corporation Voting Securities were converted pursuant to
such Business Combination Event), and such voting power among the holders
thereof is in substantially the same proportion as the voting power of such
Corporation Voting Securities among the holders thereof immediately prior to
the Business Combination Event,

 

(B) no Person, other than
a Permitted Investor or any employee benefit plan (or related trust) sponsored
or maintained by the Surviving Corporation or the Parent Corporation, is or
becomes the beneficial owner, directly or indirectly, of securities of the
Parent Corporation (or, if there is no Parent Corporation, the Surviving
Corporation) representing (A) 30% of the total voting power of the securities
then outstanding generally eligible to vote for the election of directors of
the Parent Corporation (or the Surviving Corporation) (the “Parent Voting
Securities”), and (B) a greater percentage of the then outstanding Parent
Voting Securities that are then held by all the Permitted Investors in the
aggregate, and

 

(C) at least a majority
of the members of the board of directors of the Parent Corporation (or, if
there is no Parent Corporation, the Surviving Corporation) following the
consummation of the Business Combination Event were Incumbent Directors at

 

3

 

the time of the Board’s approval of the execution of the initial
agreement providing for such Business Combination Event;

 

(any Business Combination
Event which satisfies all of the criteria specified in (A), (B) and (C) above
shall be deemed to be a “Non-Qualifying Transaction”);

 

(iii) the shareholders of
the Corporation approve a plan of complete liquidation or dissolution of the
Corporation (a “Liquidation Event”); or

 

(iv) the consummation of
a sale of all or substantially all of the Corporation’s assets to an entity
that is not an affiliate of the Corporation (other than pursuant to a
Non-Qualifying Transaction) (a “Sale of Assets Event”).

 

Notwithstanding the
foregoing, a Change of Control of the Corporation shall not be deemed to occur
solely because any person acquires beneficial ownership of more than 30% of
Corporation Voting Securities as a result of the acquisition of Corporation
Voting Securities by the Corporation which reduces the number of Corporation
Voting Securities outstanding; provided, that if after such acquisition
by the Corporation such person becomes the beneficial owner of additional
Corporation Voting Securities that increases the percentage of outstanding
Corporation Voting Securities beneficially owned by such person, a Change of
Control of the Corporation may then occur.

 

 “Corporation” means Talecris Biotherapeutics
Holding Corp. and each of the affiliates of that Corporation that is an
adopting party to the Plan.

 

“Effective Date” has the
meaning contained in Section 1.1.

 

“Eligible Individual” means
a director, officer, employee, or consultant to the Corporation.

 

“ERISA” means the
Employee Retirement Income Security Act of 1974, as amended.

 

4

 

“Participant” means an
Eligible Individual designated by the Board to receive Bonus Compensation.

 

“Person” means any
individual, corporation (including not-for-profit), general or limited
partnership, limited liability company, joint venture, association, joint-stock
corporation, estate, trust, unincorporated organization or government or any
political subdivision, agency or instrumentality thereof or any other entity of
any kind.

 

“Plan” means this
Talecris Biotherapeutics Holding Corp. Special Recognition Bonus Plan, as such
may be amended from time to time.

 

“Plan Administrator”
means Talecris Biotherapeutics Holdings Corp. or its delegate.

 

“Plan Year” means the
calendar year, except that the first Plan Year shall begin on October 1, 2006,
and end on December 31, 2006.

 

ARTICLE
II

 

PURPOSES
AND CONSTRUCTION

 

The purpose of this Plan
is to provide for the award of Special Recognition Bonus Compensation. The Plan
is intended to be an unfunded, nonqualified retirement plan for purposes of
Code Sections 83, 401(a), 402(b), 404(a)(5) and 451, and an unfunded deferred
compensation plan maintained primarily for a select group of management or
highly compensated employees for purposes of ERISA Sections 201(2), 301(a)(3)
and 401(a)(1). The Plan should be construed and interpreted in a manner that is
consistent with the provisions of Section 409A of the Code.

 

5

 

ARTICLE
III

 

SPECIAL
RECOGNITION BONUS ELIGIBILITY

 

Section
3.1. 2006 Special Recognition Bonus.

 

On or about
October 2, 2006, the Corporation shall declare that Special Recognition
Bonus Compensation shall be awarded to Eligible Individuals, such award to be
in an amount equal to the amount set forth next to each Eligible Individual’s
name on Schedule A attached hereto (2006 Special Bonus Compensation), making
each designated Eligible Individual a Participant. The 2006 Special Bonus
Compensation shall be paid to Participants in five equal installments in
accordance with the provisions of this Plan, as follows:  The first installment of the 2006 Special
Bonus Compensation shall be paid to the Participants on or before November 1,
2006 and the second installment shall be paid to the Participants on or before
March 15, 2007. Unless a Participant has executed a valid Deferral Election
Form, pursuant to a deferred compensation program adopted by the Corporation,
for the Plan Year to which the 2006 Special Bonus Compensation installment
payment relates, the remaining three installments of the 2006 Special Bonus
Compensation shall be paid to the Participants on or before March 15, 2008,
March 15, 2009 and March 15, 2010.

 

Section
3.2. Additional Special Recognition Bonus Compensation.
Pursuant to this Plan the Board may declare that additional Special
Recognition Bonus Compensation shall be awarded and paid to one or more Eligible
Individuals. The amount of the additional Special Bonus Compensation shall be
determined by the Board in its discretion as reflective of the contribution of
the Eligible Individuals to the success of the Corporation. Such additional
Special Bonus Compensation shall be specified on supplemental schedules in the
form of Schedule A that shall be attached to the Plan and become a part hereof.
Unless otherwise specified by the Board at the time of an award, any additional
Supplemental Recognition Bonus Compensation shall be paid on an installment
basis through 2010, as provided in

 

6

 

Section 3.1, with any amounts allocated by the terms of Section 3.1 to
a date that has passed being paid out immediately.

 

Section
3.3. Acceleration and Change of Control. The Board
may accelerate vesting and payment of any Bonus Compensation. Immediately prior
to a Change of Control that will be the result of a Business Combination Event
or a Sale of Assets Event, all unpaid Bonus Compensation shall be paid to each
Participant. Immediately after a Change of Control that was the result of a
Stock Purchase Event or a Liquidation Event, all unpaid Bonus Compensation
shall be paid to each Participant.

 

Section
3.4. Forfeiture. If a Participant ceases to be an Eligible
Individual by reason of death or disability, then all unpaid Bonus Compensation
allocated to such Participant shall be paid to the Participant’s Beneficiary. If
a Participant ceases to be an Eligible Individual for any other reason, then
all unpaid Bonus Compensation allocated to such Participant shall be forfeited.

 

ARTICLE
IV

 

ADMINISTRATION

 

Section
4.1. Administrator. The Corporation shall be the “administrator”
of the Plan. It shall also be the Plan Administrator for purposes of
Section 4.5 of the Plan.

 

Section
4.2. Expenses. All expenses incurred in the
administration of the Plan shall be paid for by the Corporation. Such expenses
shall include any expenses incident to the administration of the Plan,
including, but not limited to, fees of accountants, counsel, and other
specialists.

 

7

 

Section
4.3. Assistance. The Corporation may appoint one
or more individuals and delegate such of its power and duties as it deems desirable
to any such individual, in which case every reference herein made to the
Corporation shall be deemed to mean or include the individuals as to matters
within their jurisdiction. Such individuals shall be such officers or other
employees as the Corporation may appoint.

 

Section
4.4  Administration.
The Corporation shall be responsible for the administration of the Plan. The
Corporation shall have all such powers as may be necessary to carry out the
provisions hereof and may, from time to time, establish rules for the
administration of the Plan and the transaction of the Plan’s business. In
making any such determination or rule, the Corporation shall pursue uniform
policies as from time to time established and shall not discriminate in favor
of or against any Participant. The Corporation shall have the exclusive right
to make any finding of fact necessary or appropriate for any purpose under the
Plan including, but not limited to, the determination of the eligibility for
and the amount of any benefit payable under the Plan. The Corporation shall
have the exclusive discretionary right to interpret the terms and provisions of
the Plan and to determine any and all questions arising under the Plan or in
connection with the administration thereof, including, without limitation, the
right to remedy or resolve possible ambiguities, inconsistencies, or omissions,
by general rule or particular decision. The Corporation shall make, or cause to
be made, all reports or other filings necessary to meet both the reporting and
disclosure requirements and other filing requirements of ERISA which are the
responsibility of “plan administrators” under ERISA. To the extent permitted by
law, all findings of fact, determinations, interpretations, and decisions of
the Corporation

 

8

 

or its delegee shall be conclusive and binding upon all persons having
or claiming to have any interest or right under the Plan.

 

Section
4.5. Appeals from Denial of Claims.

 

(a)           Denial of Claims. If any claim
for benefits under the Plan is wholly or partially denied, the claimant shall
be given notice in writing within a reasonable period of time after receipt of
the claim by the Plan (not to exceed 90 days after receipt of the claim or, if
special circumstances require an extension of time, written notice of the
extension shall be furnished to the claimant and an additional 90 days will be
considered reasonable) by registered or certified mail of such denial. The
notice of denial shall be written in a manner calculated to be understood by
the claimant and shall set forth the following information:

 

(1)           The specific reasons for such denial;

 

(2)           Specific reference to pertinent Plan
provisions on which the denial is based;

 

(3)           A description of any additional material
or information necessary for the claimant to perfect the claim and an
explanation of why such material or information is necessary; and

 

(4)           An explanation of the Plan’s claim
review procedure.

 

(b)           Deemed Denial. If a claimant
does not receive a notice of denial within 180 days after receipt of the claim,
the claim will be deemed to have been denied and the claimant will be able to
request a review of the denial pursuant to subsection (c).

 

(c)           Review of Denial. A claimant
whose claim has been denied under subsection (a) or whose claim is deemed to
have been denied under subsection (b) may request a review by the Plan
Administrator of the decision denying the claim. A

 

9

 

claimant may request a review by filing with the Plan Administrator a
written request for such review. The request must be filed within 60 days after
the notice of denial under subsection (a) is received, or within 60 days after
a denial is deemed to have occurred under subsection (b). The claimant may
review pertinent documents, and submit issues and comments in writing within
the same 60-day period. If such request is so filed, such review shall be made
by the Plan Administrator within 60 days after receipt of such request, unless
special circumstances require an extension of time for processing, in which
case the claimant shall be so notified and a decision shall be rendered as soon
as possible, but not later than 120 days after receipt of the request for
review. The Participant or beneficiary shall be given written notice of the
decision resulting from such review, which notice shall include specific
reasons for the decision, written in a manner calculated to be understood by
the claimant, and specific references to the pertinent Plan provisions on which
the decision is based.

 

Section
4.6.           Notice
of Address and Missing Persons. Each person entitled to benefits under
the Plan must file with the Plan Administrator, in writing, his/her post office
address and each change of post office address. Any communication, statement,
or notice addressed to such a person at his/her latest reported post office
address will be binding upon him for all purposes of the Plan and neither the
Plan Administrator nor the Employer shall be obliged to search for or ascertain
his/her whereabouts. In the event that such person cannot be located, the Plan
Administrator may direct that such benefit and all further benefits with
respect to such person shall be discontinued and forfeited, and all liability
for the payment thereof shall terminate; provided, however, that in the event
of the subsequent reappearance of the Participant or Beneficiary prior to
termination of the Plan, the benefits which were due and payable (without
interest) and which such person

 

10

 

missed shall be paid in a single sum and the future benefits due such
person shall be reinstated in full.

 

Section
4.7.           Data
and Information for Benefits. All persons claiming benefits under the
Plan must furnish to the Plan Administrator or its designated agent such
documents, evidence, or information as the Plan Administrator or its designated
agent consider necessary or desirable for the purpose of administering the
Plan; and such person must furnish such information promptly and sign such
documents as the Plan Administrator or its designated agent may require before
any benefits become payable under the Plan.

 

Section
4.8.           Indemnity
for Liability. The Corporation shall indemnify any individual who is
directed by the Corporation to carry out responsibilities and duties imposed by
this Plan against any and all claims, losses, damages, and expenses, including
counsel fees, approved by the Corporation, and any liability, including any
amounts paid in settlement with the Corporation’s approval, arising from the
individual’s action or failure to act, in connection with such person’s
responsibilities and duties under the Plan, except when the same is judicially
determined to be attributable to the gross negligence or willful misconduct of
such person.

 

Section
4.9.           Effect
of a Mistake. In the event of a mistake or misstatement as to the
eligibility, participation, or service of any Participant, or the amount of
payments made or to be made to a Participant or Beneficiary, the Plan
Administrator shall, if possible, cause to be withheld or accelerated or
otherwise make adjustment of such amounts of payments as will in its sole
judgment result in the Participant or Beneficiary receiving the proper amount
of payments under this Plan.

 

11

 

ARTICLE
V

 

AMENDMENT
AND TERMINATION

 

The Corporation reserve
the right to amend or terminate the Plan at any time by the action of the
Board, which shall be evidenced in writing; provided that in no event shall an
amendment to the Plan or the Plan’s termination result in a distribution to a
Participant earlier than is permitted under Section 409A of the Code.

 

ARTICLE
VI

 

MISCELLANEOUS
PROVISIONS

 

Section
6.1.           Unsecured
Benefit; No Assignment of Benefit. 
A Participant’s right to benefits under the Plan shall at all times be
merely an unfunded and unsecured promise to be paid by the Corporation. The
Corporation may, however, establish a grantor trust for the purpose of
assisting the Employer in setting aside assets to fund its unsecured
obligations under the Plan. No portion of any benefit credited or paid under
the Plan with respect to any Participant shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or
charge, and any attempt so to anticipate, alienate, sell, transfer, assign,
pledge, encumber or charge the same shall be void, nor shall any portion of
such benefit be in any manner payable to any assignee, receiver or any one
trustee, or be liable for his debts, contracts, liabilities, engagements or
torts, or be subject to any legal process to levy upon or attach.

 

Section
6.2.           No Employment Rights. Establishment of
the Plan shall not be construed to give any Participant the right to be
retained by the Corporation or to any benefits not specifically provided by the
Plan.

 

Section
6.3.           Severability. If a provision of
this Plan shall be held invalid or illegal, the illegality or invalidity shall
not affect the remaining parts of the Plan, and

 

12

 

the Plan shall be construed and enforced as if the illegal or invalid
provision had not been included in this Plan and the Employer shall have the
privilege and opportunity to correct and remedy any illegality or invalidity by
amendment.

 

Section
6.4.           Applicable Law. The Plan and all rights
hereunder shall be governed by and construed in accordance with the laws of the
State of North Carolina to the extent such laws have not been preempted by applicable
federal law.

 

Section
6.5.           Headings of Articles and Sections. The
headings and subheadings included in this Plan are included for convenience of
reference only and shall not be used in the construction or interpretation of
any matter.

 

13

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