Document:

Exhibit
4.3

 

CERTIFICATE
OF DESIGNATIONS

OF

SERIES B
SENIOR CONVERTIBLE PREFERRED STOCK

OF

TALECRIS
BIOTHERAPEUTICS HOLDINGS CORP.

 

Talecris Biotherapeutics
Holdings Corp., a Delaware corporation (the “Corporation”), DOES HEREBY
CERTIFY:

 

That the following resolution was duly adopted by the Board of
Directors of the Corporation (the “Board of Directors”) by written
consent without a meeting as of March 31, 2005 pursuant to authority
conferred upon the Board of Directors by the provisions of the Certificate of
Incorporation of the Corporation authorizing the Corporation to issue up to 10,000,010
shares of Preferred Stock, par value $0.01 per share:

 

“BE IT RESOLVED, that the issuance of a series of Preferred Stock of Talecris
Biotherapeutics Holdings Corp. (the “Corporation”) is hereby authorized,
and the designation, voting powers, privileges, preferences and relative,
participating, optional and other special rights, and qualifications,
limitations and restrictions thereof, of the shares of such series, in addition
to those set forth in the Certificate of Incorporation of the Corporation, are
hereby fixed as follows:

 

Section 1.                                          Designation.  The distinctive serial designation of such
series is “Series B Senior Convertible Preferred Stock” (“Series B Senior Convertible
Preferred Stock”).  Each share of Series
B Senior Convertible Preferred Stock shall be identical in all  respects to every other share of Series B
Senior Convertible Preferred Stock.

 

Section 2.                                          Number of
Shares.  The number of
shares of Series B Senior Convertible Preferred Stock shall be 5,000,000.  Such number may from time to time be
increased (but not in excess of the total number of authorized shares of
Preferred Stock) or decreased (but not below the number of shares of Series B Senior
Convertible Preferred Stock then outstanding) by the Board of Directors.  Shares of Series B Senior Convertible
Preferred Stock that are redeemed, purchased or otherwise acquired by the
Corporation shall be cancelled and shall revert to authorized but unissued
shares of Preferred Stock undesignated as to series.

 

Section 3.                                          Definitions.  As used herein with respect to Series B Senior
Convertible Preferred Stock:

 

(a)                                  “Accrued
dividends,” with respect to any share of any class or series, means an
amount computed at the annual dividend rate, for the class or series, from the
date on which dividends on such share became cumulative to and

 

 

including the
date to which such dividends are to be accrued (whether or not such dividends
have been declared), less the aggregate amount of all dividends previously paid
on such share.

 

(b)                                 “Affiliate”
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person.  For purposes of
this definition, “control” (including, with correlative meanings, the terms “controlling,”
“controlled by” and “under common control with”), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to direct
or cause the direction of the management or policies of such Person, whether
through the ownership of voting stock, by agreement or otherwise; provided,
however, that beneficial ownership of 10% or more of the voting stock of
a Person shall be deemed to be control; provided, further, that
none of Bayer and its Affiliates shall be considered to be an Affiliate of the
Corporation or Parent or any of their respective subsidiaries.

 

(c)                                  “Ampersand”
means Ampersand 2001 Limited Partnership, a Delaware limited partnership.

 

(d)                                 “Bayer”
means Bayer HealthCare LLC, a Delaware limited liability company.

 

(e)                                  “Business
Day” means each Monday, Tuesday, Wednesday, Thursday or Friday on which
banking institutions in New York, New York are not authorized or obligated by
law, regulation or executive order to close.

 

(f)                                    “Cerberus”
means Cerberus Capital Management, L.P., a Delaware limited partnership.

 

(g)                                 “Common
Stock” means the Common Stock, par value $0.01 per share, of the
Corporation.

 

(h)                                 “Credit
Agreements” means the Credit Agreement, dated as of March 31, 2005, among
the Corporation, Talecris Biotherapeutics Inc., JPMorgan Chase Bank, N.A. and the other
lenders thereunder, and the Second Lien Credit Agreement, dated as of
March 31, 2005, among the Corporation, Talecris Biotherapeutics, Inc., Cerberus-Plasma
Holdings LLC and the other lenders thereunder.

 

(i)                                     “Deemed
Liquidation” means any of the events to which Section 5(d), (e) or (f)
applies.

 

(j)                                     “Junior
Secured Convertible Notes” means the Junior Secured Convertible Notes due
2013 of the Corporation.

 

2

 

(k)                                  “Junior
Stock” means the Common Stock, the Junior Preferred Stock and any other
class or series of stock of the Corporation hereafter authorized over which Series
B Senior Convertible Preferred Stock has preference or priority in the payment
of dividends or in the distribution of assets on any liquidation, dissolution
or winding up of the Corporation.

 

(l)                                     “Parity
Stock” means any other class or series of stock of the Corporation,
including the Series A Senior Convertible Preferred Stock, that ranks on a
parity with Series B Senior Convertible Preferred Stock in the payment of
dividends or in the distribution of assets on any liquidation, dissolution or winding
up of the Corporation.

 

(m)                               “Person”
means any corporation, partnership, limited liability company, trust, estate,
governmental entity, natural person or any other entity that is treated as a
person under applicable law.

 

(n)                                 “Series
A Senior Convertible Preferred Stock” means the Series A Senior Convertible
Preferred Stock, par value $0.01 per share, of the Corporation.

 

(o)                                 “Stockholders
Agreement” means the Stockholders Agreement dated as of March 31, 2005
among the Corporation, Talecris Holdings, LLC and Bayer and its affiliates
party thereto

 

Section 4.                                          Dividends.

 

(a)                                  Rate.  The Series B Senior Convertible Preferred
Stock shall accrue, but only out of funds legally available therefor,
cumulative dividends at the annual rate of 10%, compounded quarterly, on the
Liquidation Preference (as defined in Section 5 below), payable in cash only
upon the earlier of the liquidation date pursuant to Section 5(a) or conversion
of the Series B Senior Convertible Preferred Stock pursuant to Section 7, on a pro rata basis with any Parity Stock; provided,
however, that no such payment shall be made in cash to the extent, but
only to the extent, prohibited by the Certificate of Designations for the
Corporation’s Junior Preferred Stock or a written contract or agreement
(including the Stockholders Agreement) validly binding on the Corporation
entered into on or prior to the date of issuance of the Series B Convertible
Preferred Stock or, in the case of either of the Credit Agreements, as either
of such Credit Agreements may be amended,
extended, renewed, refinanced or replaced.  If and to the
extent that the payment of any dividends in cash is so prohibited, such payment
shall be made at the earliest time no longer so prohibited under such
Certificate of Designations or any such aagreements.  No interest, or sum of money in lieu of
interest, shall be payable in respect of any dividend payments on shares of
Series B Senior Convertible Preferred Stock which may be in arrears.

 

3

 

Section 5.                                          Liquidation
Rights.

 

(a)                                  Liquidation.  In the event of any voluntary or involuntary liquidation,
dissolution or winding up of the affairs of the Corporation or a Deemed
Liquidation, holders of Series B Senior Convertible Preferred Stock shall be
entitled, before any distribution or payment out of the assets of the
Corporation may be made to or set aside for the holders of any Junior Stock, and
on a pro rata basis with any Parity
Stock, to receive in full $100.00 per share (the “Liquidation Preference”),
together with an amount equal to all accrued dividends to the date of payment
whether or not earned or declared.  Such
date of payment shall be as promptly as legally permissible in the event of any
voluntary or involuntary liquidation, dissolution or winding up of the affairs
of the Corporation or, in the event of a Deemed Liquidation, within
45 days thereafter.

 

(b)                                  Partial Payment.  If the assets of the Corporation are not
sufficient to pay the Liquidation Preference (plus accrued dividends to the
date of payment whether or not earned or declared) in full to all holders of Series
B Senior Convertible Preferred Stock and all holders of any Parity Stock, the
amounts paid to the holders of Series B Senior Convertible Preferred Stock and
to the holders of all Parity Stock shall be pro rata in accordance with the respective aggregate liquidation
preferences of Series B Senior Convertible Preferred Stock and all such Parity
Stock.

 

(c)                                  Residual Distributions.  If the Liquidation Preference (plus accrued
dividends to the date of payment whether or not earned or declared) has been
paid in full to all holders of Series B Senior Convertible Preferred Stock and
all holders of any Parity Stock, the holders of Junior Stock shall be entitled
to receive all remaining assets of the Corporation according to their
respective rights and preferences.

 

(d)                                  Merger or
Consolidation.  For purposes of this Section 5, the merger or
consolidation of the Corporation with any other corporation shall constitute a
liquidation of the Corporation unless (i) the Corporation is the surviving
corporation following the merger or consolidation and the rights of holders of Series
B Senior Convertible Preferred Stock are not adversely affected by such merger
or consolidation or (ii) if the Corporation is not the surviving
corporation following the merger or consolidation, the surviving corporation
issues securities having substantially identical rights and privileges to the Series
B Senior Convertible Preferred Stock in exchange for outstanding Series B Senior
Convertible Preferred Stock pursuant to the merger or consolidation.

 

(e)                                  Sale of Assets.  For purposes of this Section 5, the sale of
all or substantially all of the assets of the Corporation shall constitute a
liquidation of the Corporation.

 

(f)                                    Change of
Control.  For purposes of this Section 5, a Change of
Control means any transaction or series of related transactions after which
(i) Cerberus, Ampersand and their respective Affiliates collectively cease
to own in the aggregate at least $50 million aggregate principal amount or
liquidation preference of the Junior Secured Convertible Notes and Series B
Senior Convertible Preferred Stock (or, if the

 

4

 

Junior Secured Convertible Notes and Series B
Senior Convertible Preferred Stock have been converted to Common Stock, 50% of
the Common Stock issuable upon conversion thereof), (ii) a majority of the
seats on the Board of Directors of the Corporation is occupied by Persons not
designated by Cerberus, Ampersand or their respective Affiliates and
(iii) another person or group of persons owns a greater amount, on a fully
diluted basis, of the Common Stock than the Common Stock owned by Cerberus,
Ampersand and their Affiliates collectively on a fully diluted basis.

 

Section 6.                                          Redemption.  The Series B Senior Convertible Preferred
Stock shall not be redeemable at any time.

 

Section 7.                                          Conversion
Rights.  Each share of Series B Senior
Convertible Preferred Stock shall be convertible at the option of the holder
thereof at any time into fully paid and non-assessable shares of Common Stock
of the Corporation (calculated as to each conversion to the nearest 1/100th of
a share) on and subject to the following terms and conditions:

 

(a)                                  Conversion Rate.  The conversion rate at which shares of Series
B Senior Convertible Preferred Stock shall be convertible into Common Stock
(the “Conversion Rate”) shall initially be nine shares of Common Stock per
share of Series B Senior Convertible Preferred Stock and shall be adjusted in
certain events as provided in Subsection (e) below.

 

(b)                                  Surrender of Certificates.  In order to convert shares of Series B Senior
Convertible Preferred Stock into Common Stock the holder must surrender, at the
principal office of the Corporation or at such other office as the Board of
Directors may designate, the certificate or certificates for the shares to be
converted, duly endorsed or assigned either to the Corporation or in blank,
together with irrevocable written notice that such holder elects to convert
such shares.  Such shares shall be deemed
to be converted immediately before the close of business on the date of such
surrender, and the person or persons entitled to receive the Common Stock
issuable upon such conversion shall be treated for all purposes as the record
holder or holders of such Common Stock at such time.  As promptly as practicable on or after such
date, the Corporation shall issue and deliver at such office to the person or
persons entitled to receive the same a certificate or certificates for the
number of full shares of Common Stock issuable upon such conversion, together
with payment in lieu of any fraction of a share as provided in Subsection (d)
and together with payment in immediately available funds of all accrued
dividends, whether or not earned or declared, on the shares of Series B Senior
Convertible Preferred Stock so converted.

 

(c)                                  Fractional Shares.  No fractional shares of Common Stock shall be
issued upon conversion of shares of Series B Senior Convertible Preferred Stock,
but instead of any fraction of a share that would otherwise be issuable the
Corporation shall pay an amount in cash equal to the same fraction of the
Closing Price (as defined in Subsection (l) below) on the date of surrender of
the certificate or certificates for such

 

5

 

shares for conversion, or, if such date is
not a Trading Day (as defined in Subsection (l) below), on the next Trading
Day.

 

(d)                                  Adjustment
of Conversion Rate.  The Conversion Rate
and the number and kind of shares of capital stock or other property issuable
on conversion shall be adjusted from time to time as follows:

 

(i)                                    Stock Splits and Combinations.  In case the Corporation shall subdivide its
outstanding Common Stock into a greater number of shares or combine its
outstanding Common Stock into a smaller number of shares, the Conversion Rate
in effect immediately before the time when such subdivision or combination
becomes effective shall be adjusted so that the holder of each share of Series
B Senior Convertible Preferred Stock converted thereafter shall be entitled to
receive the number of shares of Common Stock that such holder would have
received if such shares of Series B Senior Convertible Preferred Stock had been
converted immediately prior thereto at the Conversion Rate then in effect.  Such adjustment shall be made successively
whenever any such event shall occur.

 

(ii)                                Stock Dividends in Common Stock.  In case the Corporation shall pay a dividend
or make a distribution in shares of Common Stock on any class of capital stock
of the Corporation, the Conversion Rate in effect immediately before the close
of business on the record date fixed for determination of stockholders entitled
to receive such dividend or distribution 
shall be increased by multiplying such Conversion Rate by a fraction, of
which the numerator is the sum of the number of shares of Common Stock
theretofore outstanding and the total number of shares issued in such dividend
or distribution, and the denominator is the number of shares of Common Stock
theretofore outstanding.

 

(iii)                            Sales of Common
Stock below Fair Market Value.  In case the
Corporation shall issue or grant to any person (whether directly or by
assumption in a merger or otherwise, other than upon a Fundamental Change to
which Section 7(d)(v) applies) (a) rights, warrants, options, exchangeable
securities or convertible securities (each referred to herein as “Rights”)
entitling such person to subscribe for or purchase shares of Common Stock at a
price per share less than the fair market value (as determined by the Board of
Directors, whose determination in good faith shall be conclusive) (the “Fair
Market Value”) or (b) shares of Common Stock at a price per share less
than the Fair Market Value, on the record date fixed for the determination of
persons entitled to receive such Rights or such shares, the Conversion Rate in
effect immediately before the close of business on the record date fixed for
such determination shall be adjusted by multiplying such Conversion Rate by a
fraction, of which (x) the numerator shall be the number of shares of Common
Stock outstanding (including all shares of Common Stock issued or issuable upon
conversion of any convertible security other than the Series B Senior
Convertible Preferred Stock or upon the exercise of

 

6

 

any rights, warrants
or options) at the close of business on such record date plus the number of
shares of Common Stock so offered for subscription or purchase pursuant to such
Rights, or so issued and (y) the denominator is the number of shares of Common
Stock outstanding (including all shares of Common Stock issued or issuable upon
conversion of any convertible security other than the Series B Senior
Convertible Preferred Stock or upon the exercise of any rights, warrants or
options) on such record date plus the number of shares of Common Stock which
the aggregate of the offering price of the total number of shares of Common
Stock so offered for subscription or purchase pursuant to such Rights, or so
issued, would purchase at the Fair Market Value on such record date.  If, after any such record date, any such
Rights or shares are not in fact issued, or are not exercised prior to the expiration
thereof, the Conversion Rate shall be immediately readjusted, effective as of
the date such Rights or shares expire, or the date the Board of Directors
determines not to issue such Rights or shares, to the Conversion Rate that
would have been in effect if the unexercised Rights had never been granted or
such record date had not been fixed, as the case may be.  Such adjustment shall be made successively
whenever any such event shall occur.  For
the purposes of this paragraph, the aggregate of the offering price received or
to be received by the Corporation shall include the maximum aggregate amount
(if any) payable upon exercise or conversion of such Rights.  The value of any consideration received or to
be received by the Corporation, if other than cash, is to be determined by the
Board of Directors on a reasonable basis and in good faith.  Notwithstanding the foregoing, the Conversion
Rate shall not be adjusted for Rights or shares of Common Stock issued or
granted (A) to the Corporation’s or its subsidiaries’ employees,
consultants, directors or officers pursuant to stock option, stock purchase,
restricted stock or similar equity or incentive-based compensation plans or
agreements approved by the Board of Directors, (B) pursuant to the
exercise, conversion or exchange of any then outstanding convertible or
exchangeable securities, rights, options or warrants or (C) to lenders or
purchasers of debt securities of the Corporation or Talecris Holdings, LLC or
their subsidiaries in connection with debt incurred to such lenders or
purchasers.

 

(iv)                               Distributions
of Indebtedness, Securities or Assets.  In case the
Corporation shall distribute to all holders of Common Stock (whether by
dividend or in a merger or consolidation or otherwise) evidences of indebtedness,
shares of capital stock of any class or series, other securities, cash or assets
(other than Common Stock, rights or warrants referred to in paragraph (iii)
above and other than as a result of a Fundamental Change), the Conversion Rate
in effect immediately before the close of business on the date fixed for
payment of such distribution shall be increased by multiplying such Conversion
Rate by a fraction, of which the numerator is the Current Market Price
(determined as provided in paragraph (vi) below) on such payment date, and the
denominator is such Current Market Price less the fair market value (as
determined by the Board of Directors, whose determination in good faith shall
be conclusive) of the portion of such

 

7

 

evidences of
indebtedness, shares of capital stock, other securities, cash and assets so
distributed applicable to one share of Common Stock, and the holder of each
share of Series B Senior Convertible Preferred Stock converted after the close
of business on the record date set for the distribution on the Common Stock and
prior to the close of business on such payment date shall be entitled to
receive, for each share of Common Stock received upon such conversion, the
portion of such evidences of indebtedness, shares of capital stock, other
securities, cash and assets so distributed applicable to one share of Common
Stock; provided, however, that, at the election of the
Board of Directors, the Corporation may (x) distribute to such holder a due
bill therefor requiring payment or delivery not later than such payment date or
(y) pay to such holder an amount in cash equal to such fair market value.  In case the Board of Directors shall
determine that such fair market value of the portion of such evidences of
indebtedness, shares of capital stock, other securities, cash and assets so
distributed applicable to one share of Common Stock is equal to or greater than
such Current Market Price, in lieu of the foregoing adjustment, the holder of
each share of Series B Senior Convertible Preferred Stock converted after such
record date shall have the right to receive upon conversion the amount of such
evidences of indebtedness, shares of capital stock, other securities, cash and
assets that such holder would have received had such holder converted such
share prior to such record date.  Such
adjustment shall be made successively whenever any such event shall occur.  In case such distribution is not made after
such a record date has been fixed, the Conversion Rate shall be readjusted to
the Conversion Rate that would have been in effect if such record date had not
been fixed.

 

(v)                                   Fundamental
Changes.  In case any transaction or
event (including without limitation any merger, consolidation, sale of assets,
tender or exchange offer, reclassification, compulsory share exchange or
liquidation) shall occur in which all or substantially all outstanding Common
Stock is converted into or exchanged for stock, other securities, cash or
assets (a “Fundamental Change”), the holder of each share of Series B Senior
Convertible Preferred Stock outstanding immediately before such Fundamental
Change becomes effective shall have the right upon any subsequent conversion to
receive (but only out of legally available funds, to the extent required by
applicable law) the kind and amount of stock, other securities, cash and assets
that such holder would have received if such share had been converted
immediately prior thereto; provided,
however, that if more than 50% of
the value (as determined by the Board of Directors, whose determination in good
faith shall be conclusive) of such stock, other securities, cash and assets
consists of common stock of any corporation, such holder shall have the right
to receive such number of shares of such common stock that such holder would
have received if all of such value had consisted solely of such common stock.  The Corporation will not be a party to or
permit any Fundamental Change to occur unless the foregoing provisions are
included in the terms thereof.  This
paragraph shall similarly apply to any subsequent Fundamental Change.

 

8

 

(vi)                               Current Market Price.  For purposes of any computation under
paragraphs (iii) and (iv) above, the Current Market Price on any date means the
average of the daily Closing Prices (as defined in Subsection (l) below) for
the five consecutive Trading Days selected by the Board of Directors commencing
not more than 20 Trading Days before, and ending not later than, the earlier of
such date and the day before the record date fixed for determination of
stockholders entitled to receive any rights or warrants referred to in
paragraph (iii) and any distribution referred to in paragraph (iv).

 

(vii)                           Deferral of Certain Conversions
Requiring Adjustment.  In any case in which this Subsection (e)
requires that an adjustment as a result of any event become effective from and
after a record date, the Corporation may elect to defer until after the
occurrence of such event (A) issuing to the holder of any shares of Series B Senior
Convertible Preferred Stock converted after such record date and before the
occurrence of such event the additional shares of Common Stock issuable upon
such conversion over and above the shares issuable on the basis of the Conversion
Rate in effect immediately before adjustment and (B) paying to such holder any
amount in cash in lieu of a fractional share of Common Stock pursuant to
Subsection (d) above.  In any such case
the Corporation shall issue or cause a transfer agent to issue due bills or
other appropriate evidence of the right to receive the shares the issuance of
which is so deferred.

 

(viii)                       Deferral of Small Adjustments.  Any adjustment in the Conversion Rate
otherwise required by this Section 7 may be postponed until the date of the
next adjustment otherwise required to be made up to, but not beyond, one year
from the date on which it would otherwise be required to be made, if such
adjustment (together with any other adjustments postponed pursuant to this
paragraph (viii) and not theretofore made) would not require an increase or
decrease of more than 1% in such Conversion Rate and would not, if made,
entitle the holders of all then outstanding shares of Series B Senior
Convertible Preferred Stock upon conversion to receive additional shares of
Common Stock equal in the aggregate to one-tenth of one percent (0.1%) or more
of the then issued and outstanding shares of Common Stock.  All calculations under this Subsection (e)
shall be made to the nearest cent or to the nearest 1/100th of a share, as the
case may be.

 

(ix)                              Provisions Applicable to Other
Classes of Stock.  In the event that at any time, as a result of
an adjustment made pursuant to paragraph (iv) or (v) above, the holder of any
shares of Series B Senior Convertible Preferred Stock becomes entitled to
receive (but does not actually receive) any shares of capital stock other than
Common Stock of the Corporation, the number and kind of such other shares so
receivable shall thereafter be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions
concerning the Common Stock contained in paragraphs (i) through

 

9

 

(viii) above, and
the other provisions of this Subsection (e) concerning the Common Stock shall
apply on like terms to any such other shares.

 

(x)                                  Voluntary Reduction in Conversion
Rate.  The Board of Directors may make such
reductions in the Conversion Rate, in addition to those required by this
Subsection (e), as shall be determined by the Board of Directors to be
advisable in order to avoid taxation insofar as practicable of any dividend or
distribution of stock or rights to acquire stock or any event treated as such
for Federal income tax purposes to the recipients.  In addition, the Board of Directors may from
time to time reduce the Conversion Rate by any amount for any period of at
least 20 days if the reduction is irrevocable during such period and the Board
has determined in good faith that it is in the best interest of the
Corporation, and whenever the Conversion Rate is so reduced, the Corporation
shall mail to holders of record of Series B Senior Convertible Preferred Stock,
at least 15 days prior to the date such reduction it is to take effect, a
notice stating the reduced Conversion Rate and the period it will be in effect.

 

(xi)                              Authority of Board of Directors.  The Board of Directors shall have the power
to resolve any ambiguity or correct any error in this Subsection (e), and its
action in so doing shall be final and conclusive.

 

(e)                                  Notice of Conversion Rate
Adjustments.  Whenever the Conversion Rate is adjusted as
herein provided:

 

(i)                                     The
Corporation shall compute and file with each transfer agent for the shares of Series
B Senior Convertible Preferred Stock the adjusted Conversion Rate in accordance
with this Section 7 and shall prepare a certificate signed by the Corporation’s
treasurer setting forth the adjusted Conversion Rate and showing in reasonable
detail the facts upon which such adjustment is based; and

 

(ii)                                  A
notice stating that the Conversion Rate has been adjusted and setting forth the
adjusted Conversion Rate shall be mailed as soon as practicable to the holders
of record of outstanding shares of Series B Senior Convertible Preferred Stock
at their respective last addresses appearing on the books of the Corporation.

 

(f)                                    Notice of Certain Events.  In case:

 

(i)                                     The
Corporation declares a dividend or other distribution on its Common Stock;

 

(ii)                                  The
Corporation authorizes the issuance to the holders of its Common Stock of
rights or warrants entitling them to subscribe for or purchase any shares of
capital stock of any class or any other subscription rights or warrants; 

 

10

 

(iii)                               Of
any reclassification of the capital stock of the Corporation (other than a
subdivision or combination of its outstanding shares of Common Stock), or of
any consolidation or merger to which the Corporation is a party and for which
approval of any stockholders of the Corporation is required, or of any sale,
transfer or other disposition of all or substantially all of the assets of the
Corporation or of any other transaction or event that would constitute or
result in a Fundamental Change; or

 

(iv)                              Of
the voluntary or involuntary liquidation, dissolution or winding up of the
Corporation;

 

then the
Corporation shall file with each transfer agent for the shares of Series B Senior
Convertible Preferred Stock and mail to the holders of record of outstanding
shares of Series B Senior Convertible Preferred Stock, at their respective last
addresses appearing on the books of the Corporation, at least 20 days (or 10
days in any case specified in paragraph (i) or (ii) above) before the
applicable record or effective date hereinafter specified, a notice stating (x)
the date as of which the holders of record of Common Stock to be entitled to
such dividend, distribution, rights or warrants are to be determined, or (y)
the date on which such reclassification, consolidation, merger, sale, transfer,
disposition, liquidation, dissolution or winding up or Fundamental Change is
expected to become effective, and the date as of which it is expected that
holders of record of Common Stock shall be entitled to exchange their shares
for securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer, disposition, liquidation, dissolution or
winding up or Fundamental Change. 
Failure to give notice as required by this Subsection (g), or any defect
in such notice, shall not affect the validity of any such dividend,
distribution, right, warrant, reclassification, consolidation, merger, sale,
transfer, disposition, liquidation, dissolution or winding up or Fundamental
Change, or the vote on any action authorizing such.

 

(g)                                 Reservation of Shares.  

 

(i)                                    The Corporation shall at all
times reserve and keep available, free from preemptive rights, out of its
authorized but unissued Common Stock, solely for the purpose of issuance upon
conversion of shares of Series B Senior Convertible Preferred Stock, the full
number of shares of Common Stock then deliverable upon conversion of all shares
of Series B Senior Convertible Preferred Stock outstanding.

 

(ii)                                In the event that at any time
the Corporation shall have outstanding any shares of capital stock, debt
securities, or other instruments or rights that are convertible into, or
exercisable or exchangeable for, shares of Series B Senior Convertible
Preferred Stock, the Corporation shall at such time reserve and keep available,
free from preemptive rights, out of its authorized but unissued Series B Senior
Convertible Preferred Stock, the full number of shares of Series B Senior

 

11

 

Convertible
Preferred Stock then deliverable upon such conversion, exercise or exchange.

 

(h)                                 Transfer Taxes on Conversion.  The Corporation shall pay any and all taxes
that may be payable in respect of the issuance or delivery of shares of Common
Stock on conversion of shares of Series B Senior Convertible Preferred Stock
pursuant hereto, other than any tax in respect of any transfer involved in the
issuance and delivery of shares of Common Stock in a name other than that in
which the shares of Series B Senior Convertible Preferred Stock so converted
were registered.  No such issuance or
delivery in a name other than that in which the shares of Series B Senior
Convertible Preferred Stock were registered shall be made unless and until the
person requesting such issuance or delivery has paid to the Corporation the
amount of any such tax or has established to the satisfaction of the
Corporation that such tax has been paid.

 

(i)                                    Definition of Common Stock.  For purposes of this Section 7, “Common
Stock” includes any stock of any class or series of the Corporation which
has no preference or priority in the payment of dividends or in the
distribution of assets in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Corporation.  However, shares issuable upon conversion of
shares of Series B Senior Convertible Preferred Stock shall include only shares
of the class designated as Common Stock as of the first date of issuance of
shares of Series B Senior Convertible Preferred Stock or shares of the
Corporation of any classes or series resulting from any reclassification or
reclassifications thereof and that have no preference or priority in the
payment of dividends or in the distribution of assets in the event of any
voluntary or involuntary liquidation, dissolution or winding up of the
Corporation, provided that if at any time there shall be more than one such
resulting class or series, the shares of each such class and series then so
issuable shall be substantially in the proportion which the total number of
shares of such class and series resulting from all such reclassifications bears
to the total number of shares of all such classes and series resulting from all
such reclassifications. 

 

(j)                                    Certificate of Independent
Accountants.  The certificate of any independent firm of
public accountants of recognized standing selected by the Board of Directors
shall be presumptive evidence of the correctness of any computation made under
this Section 7.

 

(k)                                Definitions of Closing Price and
Trading Day.  As used in this Section 7, “Closing Price”
on any day means the reported last sale price per share of Common Stock regular
way on such day or, in case no such sale takes place on such day, the average
of the reported closing bid and asked prices regular way, in each case on the
New York Stock Exchange, or, if the Common Stock is not listed or admitted to
trading on such Exchange, on the American Stock Exchange, or, if the Common
Stock is not listed or admitted to trading on such Exchange, on the principal
national securities exchange on which the Common Stock is listed or admitted to
trading, or, if the Common Stock is not listed or admitted to trading on any
national securities exchange, the average

 

12

 

of the closing bid and asked prices in the
over-the-counter market as reported by the National Association of Securities
Dealers’ Automated Quotation System (“NASDAQ”), or, if not so reported,
as reported by the National Quotation Bureau, Incorporated, or its successor,
or, if not so reported, the average of the closing bid and asked prices as
furnished by any member of the National Association of Securities Dealers, Inc.
selected from time to time by the Corporation for that purpose.  If on any such date the shares of Common
Stock are not listed or admitted for trading on any national securities
exchange or quoted by NASDAQ or a similar service, the Current Market Price for
the Common Stock shall be the fair market value of the Common Stock on such
date as determined in good faith by the Board of Directors of the
Corporation.  “Trading Day” means
a day on which the principal national securities exchange on which the Common
Stock is listed or admitted to trading is open for the transaction of business
or, if the Common Stock is not listed or admitted to trading on any national
securities exchange, a Monday, Tuesday, Wednesday, Thursday or Friday on which
banking institutions in New York, New York are not authorized or obligated by
law or executive order to close.

 

Section 8.                                          Voting
Rights.

 

(a)                                  General.  The holders of Series B Senior Convertible
Preferred Stock shall be entitled to ten votes for each share of Common Stock
into which their shares of Series B Senior Convertible Preferred Stock are
convertible and, except as hereinafter provided, shall vote together with the
holders of Parity Stock and Common Stock (and of any other class or series that
may similarly be entitled to vote with the holders of Common Stock) as a single
class on all matters on which holders of Common Stock are entitled to vote.

 

(b)                                  Other Voting Rights.  So long as any shares of Series B Senior
Convertible Preferred Stock are outstanding, in addition to any other vote or
consent of stockholders required by law or by the Certificate of Incorporation,
the vote or consent of the holders of at least a majority of the shares of Series
B Senior Convertible Preferred Stock at the time outstanding, voting separately
as a single class (subject to the proviso in this Section 8(b)), given in
person or by proxy, either in writing without a meeting or by vote at any
meeting called for the purpose, shall be necessary for effecting or validating:

 

(i)                                    Amendment of Certificate of
Incorporation.  Any amendment, alteration or repeal of any
provision of the Certificate of Incorporation, this Certificate of Designations
or By-laws of the Corporation (whether by merger, consolidation,
reclassification, combination or otherwise), or waive any provisions thereof,
in a manner that would adversely affect the rights, preferences, privileges or
powers of the Series B Senior Convertible Preferred Stock, including any
amendment of the Certificate of Incorporation to increase or decrease (but not
below the number of shares thereof then outstanding) the authorized number of
shares of the Preferred Stock, or to authorize or create, or increase the
authorized amount of, any shares of any class or series or any securities
convertible into shares of any class or series of capital stock of the
Corporation ranking on a parity

 

13

 

with Series B Senior
Convertible Preferred Stock and all such other series in the payment of
dividends or in the distribution of assets on any liquidation, dissolution or
winding up of the Corporation; provided,
however, that the
amendment of the Certificate of Incorporation so as to authorize or create, or
to increase the authorized amount of, any Junior Stock shall not be deemed to
affect adversely the powers, preferences or rights of the Series B Senior
Convertible Preferred Stock;

 

(ii)                                Authorization of Senior Stock.  Any amendment or alteration of the Certificate
of Incorporation (including without limitation by merger, consolidation,
reclassification, combination or otherwise) to authorize or create, or increase
the authorized amount of, or obligate itself to authorize, issue or increase
the amount of, any shares of any class or series or any securities convertible
into or exchangeable for shares of any class or series of capital stock of the
Corporation ranking prior to or on parity with Series B Senior Convertible
Preferred Stock with respect to rights, privileges, liquidation preferences,
dividends or distributions; or

 

(iii)                            Certain Mergers and
Consolidations.  Any merger or consolidation of the Corporation
with or into any entity other than a corporation, or any merger or
consolidation of the Corporation with or into any other corporation unless the
surviving or resulting corporation, or a corporation controlling such
corporation that issues shares or other securities in such merger or
consolidation, will thereafter have no class or series of shares or other
securities either authorized or outstanding ranking prior to Series B Senior
Convertible Preferred Stock in the payment of dividends or in the distribution
of assets on any liquidation, dissolution or winding up, except the same number
of shares and the same amount of other securities with the same voting powers,
preferences and special rights as the shares and securities of the Corporation
respectively authorized and outstanding immediately before such merger or
consolidation, and each share of Series B Senior Convertible Preferred Stock
outstanding immediately before such merger or consolidation is changed thereby
into the same number of shares, with the same voting powers, preferences and
special rights, of such corporation;

 

provided, however, that if any such amendment, alteration or repeal
would affect adversely the powers, preferences or rights of the Series B Senior
Convertible Preferred Stock and any other series of the Preferred Stock
similarly entitled to vote upon the matters specified herein in substantially
the same manner, it shall be sufficient if the holders of Series B Senior
Convertible Preferred Stock and all such other series so adversely affected
vote thereon together as a single class, regardless of series.

 

Section 9.                                          Certain
Covenants.  So long as any
shares of Series B Senior Convertible Preferred Stock are outstanding, in
addition to any other vote or consent of stockholders required by law or by the
Certificate of Incorporation, the vote or

 

14

 

consent of the holders of at least
a majority of the aggregate shares of Series B Senior Convertible Preferred
Stock and Series A Senior Convertible Preferred Stock at the time outstanding,
voting together as a single class on the basis of one vote for each share of
Common Stock into which shares of Series B Senior Convertible Preferred Stock
and Series A Senior Convertible Preferred Stock are convertible, given in
person or by proxy, either in writing without a meeting or by vote at any
meeting called for the purpose, shall be necessary for the Corporation to:

 

(a)                                  (i) dissolve, liquidate or
wind-up the Corporation or carry out any partial liquidation or distribution or
any transaction in the nature of a partial liquidation or distribution, (ii)
reclassify or recapitalize any shares of the Corporation’s capital stock, (iii) directly
or indirectly, redeem, purchase, or otherwise acquire for value (including
through an exchange), or set apart money or other property for any redemption,
purchase or acquisition of, or other analogous fund for the redemption,
purchase, acquisition of, any Junior Stock or securities convertible into or
exchangeable for Junior Stock, other than the redemption of (A) shares of
Common Stock, par value $0.01 per share, of the Corporation pursuant to
Section 2.01(a) of the Stockholders Agreement and (B) shares of
Junior Preferred Stock, par value $0.01 per share, of the Corporation pursuant
to the Certificate of Designations for the Junior Preferred Stock or (iv) file
any voluntary bankruptcy petitions or consent to the filing of any such
bankruptcy petition or consent to the appointment of any receiver, custodian,
liquidator or trustee for the Corporation or any material portion of its
properties;

 

(b)                                  acquire,
whether by way of asset purchase, recapitalization, merger, consolidation,
purchase of stock or otherwise, a controlling interest in any other person or
entity, or all or any substantial part of the assets of any other person or
entity, or any operating division or business line of any other person or
entity, in each case outside the ordinary course of business, except to the
extent that the aggregate value of the consideration paid (including without
limitation indebtedness assumed) in connection therewith, together with the
aggregate value of the consideration paid (including without limitation
indebtedness assumed) in connection with any related transaction, is less than
$20,000,000; or

 

(c)                                  convey,
sell, lease, assign, transfer, exchange or otherwise dispose of any of its
property, business or assets, or permit the conveyance, sale, lease,
assignment, transfer, exchange or other disposition of any property, business
or assets of any consolidated subsidiary of the Corporation, whether now owned
or hereafter acquired, for an aggregate value of consideration paid (including
without limitation indebtedness assumed) in excess of $20,000,000 in any one
transaction or series of related transactions, except for (i) the sale or other
disposition of any tangible or intangible personal property that has become
obsolete or worn out and is disposed of in the ordinary course of business,
(ii) the sale or other disposition of inventory made in the ordinary course of
business, (iii) capitalized leases and sale and leaseback transactions, (iv)
the license or sub-license of any intellectual property, or (v) the sale of the

 

15

 

Corporation
which is structured as a sale of all or substantially all of the assets of the
Corporation.

 

Section 10.                                   Other Rights.  The shares of Series
B Senior Convertible Preferred Stock shall not have any voting powers,
preferences or relative, participating, optional or other special rights, or
qualifications, limitations or restrictions thereof, other than as set forth
herein or in the Certificate of Incorporation of the Corporation.

 

Section 11.                                   Restatement
of Certificate.  Upon any
restatement of the Certificate of Incorporation of the Corporation, Sections 1
through 10 of this certificate of designations shall be included in Article 4
of the Amended and Restated Certificate of Incorporation under the heading “Series
B Senior Convertible Preferred Stock” and this Section 11 may be
omitted.  If the Board of Directors so
determines, the numbering of Sections 1 through 10 may be changed for
convenience of reference or for any other proper purpose.”

 

16

 

IN WITNESS
WHEREOF, Talecris Biotherapeutics Holdings Corp. has caused this certificate to
be signed by Lawrence D. Stern, its President, this 31st day of March, 2005.

 

 

	
   

  	
  TALECRIS BIOTHERAPEUTICS

  
	
   

  	
  HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/ Lawrence D. Stern

  	
   

  

 

 

CERTIFICATE OF AMENDMENT

OF

CERTIFICATE OF DESIGNATION

OF

SERIES 13 SENIOR CONVERTIBLE PREFERRED STOCK

OF

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

 

Talecris
Biotherapeutics Holdings Corp., a corporation duly organized and existing under
the General Corporation [raw of the State of Delaware (the “Corporation”), does
hereby certify that:

 

1.                                       The
Certificate of Designation of the Series 13 Senior Convertible Preferred Stock
of the Corporation, filed with the Secretary of State on March al, 2005, is
hereby amended by adding the following new sentence to the and of Section 4(a)
thereof;

 

“Notwithstanding anything herein to the contrary, at any time prior to
January 31, 2007, the Board of Directors, or a duly authorized committee
thereof, is authorized to declare, and the Corporation is authorized to pay,
one or more dividends in an aggregate amount not to exceed 5850 million on the
Series A Senior Convertible Preferred Stock and the Series B Senior Convertible
Preferred Stock,”

 

2.                                       The
foregoing amendment was duly adopted in accordance with the provisions of
Sections 242 and 228 (by the written consent of the sole stockholder of the
Corporation) of the General Corporation Law of the State of Delaware,

 

IN WITNESS
WHEREOF, Talecris Biotherapeutics Holdings Corp. has caused this Certificate to
be executed by a duly authorized officer on this       
day of                       ,
2006.

 

 

	
   

  	
  TALECRIS
  BIOTHERAPEUTICS HOLDING CORP

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ John F. Gaither, Jr.

  	
   

  
	
   

  	
   

  	
  Name: John
  F. Gaither, Jr.

  	
   

  
	
   

  	
   

  	
  Office:
  Executive Vice President

  	
   

  

 

 

CERTIFICATE OF SECOND AMENDMENT

OF

CERTIFICATE OF DESIGNATION

OF

SERIES B SENIOR CONVERTIBLE PREFERRED STOCK

OF

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

 

Talecris
Biotherapeutics Holdings Corp., a corporation duly organized and existing under
the General Corporation Law of the State of Delaware (the “Corporation”), does
hereby certify that:

 

The
Certificate of Designation of Series B Senior Convertible Preferred Stock of
the Corporation, filed with the Secretary of Sate on March 31, 2005, amended by
the Certificate of Amendment to the Certificate of Designation of Series B
Senior Convertible Preferred Stock of the Corporation, filed with the Secretary
of Sate on December 5, 2006, is hereby further amended by inserting the
following language at the end of Section 9(a)(iii) thereof, after the word “Stock”
and before the word “or”

 

“, and (C)
shares of Common Stock, par value $.01 pursuant to Section 2(h) of that certain
Asset Purchase Agreement by and Among IBR-BYR L.L.C., International
Bioresources, L.L.C., IBR Plasma Centers, L.L.C., Talecris Plasma Resources,
Inc. and Talecris Biotherapeutics Holdings Corp., dated November 18, 2006,”

 

The foregoing
amendment was duly adopted in accordance with the provisions of Sections 242
and 228 (by written consent of the sole stockholder of the Corporation) of the
General Corporation Law of the State of Delaware.

 

IN WITNESS
WHEREOF, Talecris Biotherapeutics Holdings Corp. has caused this Certificate of
Second Amendment to be executed by a duly authorized officer on this the 27th
day of February, 2007.

 

	
   

  	
  TALECRIS
  BIOTHERAPEUTICS HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ John F. Gaither, Jr.

  	
   

  
	
   

  	
   

  	
  John F. Gaither, Jr., Executive Vice PresidentExhibit 10.1

 

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

 

2005 STOCK OPTION AND INCENTIVE PLAN

 

 

Table of Contents

 

	
  ARTICLE I GENERAL

  	
  1

  
	
   

  	
   

  
	
  1.1

  	
  Purpose

  	
  1

  
	
  1.2

  	
  Definitions of Certain Terms

  	
  1

  
	
  1.3

  	
  Administration

  	
  3

  
	
  1.4

  	
  Persons Eligible for Awards

  	
  5

  
	
  1.5

  	
  Types of Awards Under the Plan

  	
  5

  
	
  1.6

  	
  Shares Available for Awards

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE II AWARDS UNDER THE PLAN

  	
  6

  
	
   

  	
   

  
	
  2.1

  	
  Award Agreements

  	
  6

  
	
  2.2

  	
  No Rights as a Shareholder

  	
  6

  
	
  2.3

  	
  Grant of Stock Options

  	
  6

  
	
  2.4

  	
  Exercise of Stock Options

  	
  7

  
	
  2.5

  	
  Cancellation and Termination of Stock Options

  	
  8

  
	
  2.6

  	
  Termination of Employment

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE III MISCELLANEOUS

  	
  9

  
	
   

  	
   

  
	
  3.1

  	
  Amendment of the Plan; Modification of Awards

  	
  9

  
	
  3.2

  	
  Tax Withholding

  	
  10

  
	
  3.3

  	
  Restrictions

  	
  10

  
	
  3.4

  	
  Nonassignability

  	
  10

  
	
  3.5

  	
  Requirement of Notification Upon Disqualifying
  Disposition Under Section 421(b) of the Code

  	
  11

  
	
  3.6

  	
  Change in Control.

  	
  11

  
	
  3.7

  	
  No Right to Employment

  	
  14

  
	
  3.8

  	
  Nature of Payments

  	
  14

  
	
  3.9

  	
  Non-Uniform Determinations

  	
  14

  
	
  3.10

  	
  Other Payments or Awards

  	
  14

  
	
  3.11

  	
  Section Headings

  	
  14

  
	
  3.12

  	
  Effective Date and Term of Plan

  	
  15

  
	
  3.13

  	
  Governing Law

  	
  15

  
	
  3.14

  	
  Severability; Entire Agreement

  	
  15

  
	
  3.15

  	
  No Third Party Beneficiaries

  	
  15

  
	
  3.16

  	
  Successors and Assigns

  	
  15

  
	
  3.17

  	
  Waiver of Claims

  	
  15

  

 

i

 

ARTICLE I

 

GENERAL

 

1.1                                 Purpose

 

The
purpose of the Talecris Biotherapeutics Holdings Corp. 2005 Stock Option and
Incentive Plan (the “Plan”) is to provide an incentive for officers,
other employees, and directors of, and consultants to, Talecris Biotherapeutics Holdings Corp. (the “Company”)
and its subsidiaries and affiliates to acquire a proprietary interest in the
success of the Company, to enhance the long-term performance of the Company and
to remain in the service of the Company and its subsidiaries and affiliates.

 

1.2                                 Definitions
of Certain Terms

 

(a)                                  “Award”
means an award under the Plan as described in Section 1.5 and Article II.

 

(b)                                 “Award
Agreement” means a written agreement entered into between the Company and a
Grantee in connection with an Award.

 

(c)                                  “Board”
means the Board of Directors of the Company.

 

(d)                                 “Cause”
means: (i) Grantee’s failure to perform the duties and responsibilities of his
or her position in a manner satisfactory to the Company, except that Cause does
not include failure resulting from Grantee’s incapacity due to mental or
physical illness or injury or from any permitted leave required by law,
(ii)  Grantee’s failure to comply with
Grantee’s employment agreement or with the Company’s written employment
policies, (iii) Grantee’s conviction of, or entering of a plea of guilty or nolo contendere to, a felony, (iv) Grantee’s willful
misconduct that results in harm to the Company financially, reputationally or
otherwise, (v) Grantee’s repeated failure to follow the lawful instructions of
his direct or indirect supervisors, and/or (vi) Grantee’s disqualification or
bar by any governmental or self-regulatory authority from serving in the
capacity he or she is employed with the Company or Grantee’s loss of any
governmental or self-regulatory license that is reasonably necessary for
Grantee to perform his or her responsibilities to the Company. Notwithstanding
the foregoing, if a Grantee is a party to a written employment agreement with
the Company or a Related Entity and such employment agreement has a definition
of “cause” that differs from the definition above, then the definition of Cause
for purposes of this Plan as it applies to such Grantee shall be deemed to be
the definition of “cause” as set forth in the Grantee’s employment agreement.

 

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

 

(f)                                    “Committee”
means the Compensation Committee of the Board and which shall consist of not
less than two directors.

 

(g)                                 “Common
Stock” means the common stock of the Company.

 

1

 

(h)                                 “Disability”
means the inability of a Grantee to perform the Grantee’s duties on a full-time
basis for 130 business days during any consecutive twelve month period as
a result of incapacity due to mental or physical illness which is determined to
be total and permanent by a physician selected by the Company or by the
insurance company which insures the Company’s long-term disability plan in
which the Grantee is eligible to participate.

 

(i)                                     “Equity
Interests” means any shares of any class or series of any securities
(including debt securities) convertible into or exercisable or exchangeable for
shares of any class or series of capital stock of any Person (or which are
convertible into or exercisable or exchangeable for another security which is,
in turn, convertible into or exercisable or exchangeable for shares of any
class or series of capital stock of such Person), whether now authorized or
not.

 

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

 

(k)                                  The
“Fair Market Value” of a share of Common Stock on any date shall be
(i) the closing sale price per share of Common Stock during normal trading
hours on the national securities exchange on which the Common Stock is
principally traded for such date or the last preceding date on which there was
a sale of such Common Stock on such exchange or (ii) if the shares of
Common Stock are then traded in an over-the-counter market, the average of the
closing bid and asked prices for the shares of Common Stock during normal
trading hours in such over-the-counter market for such date or the last
preceding date on which there was a sale of such Common Stock in such market,
or (iii) if the shares of Common Stock are not then listed on a national
securities exchange or traded in an over-the-counter market, such value as the
Committee, in its sole discretion, shall determine.

 

(l)                                     “Grantee”
means a person who receives an Award.

 

(m)                               “Incentive
Stock Option” means a stock option that is intended to qualify for special
federal income tax treatment pursuant to Sections 421 and 422 of the Code (or a
successor provision thereof) and which is so designated in the applicable Award
Agreement. Under no circumstances shall any stock option that is not
specifically designated as an Incentive Stock Option be considered an Incentive
Stock Option.

 

(n)                                 “Initial
Public Offering” means the initial public offering, if any, of Equity
Interests of the Company or Parent pursuant to an effective Registration
Statement under the Securities Act.

 

(o)                                 “Key
Persons” means directors, officers and other employees of the Company or of
a Related Entity, and consultants to the Company or a Related Entity.

 

(p)                                 “Option
Exercise Price” means the amount payable by a Grantee on the exercise of a
stock option.

 

(q)                                 “Parent”
means Talecris Holdings, LLC.

 

2

 

(r)                                    “Permitted
Investor” means Parent, Cerberus-Plasma Holdings LLC and Ampersand Ventures
or any of their respective affiliates or other affiliates of Cerberus Capital
Management, L.P.

 

(s)                                  “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.

 

(t)                                    “Related
Entity” means any parent or subsidiary corporation of the Company or any
business, corporation, partnership, limited liability company or other entity
in which the Company or a parent or a subsidiary corporation holds a
controlling ownership interest, directly or indirectly.

 

(u)                                 “Rule
16b-3” means Rule 16b-3 under the Exchange Act.

 

(v)                                 “Securities
Act” means the Securities Act of 1933, as amended.

 

(w)                               “Stockholders’
Agreement” means the Stockholders Agreement dated as of March 31, 2005
among Talecris Biotherapeutics Holding Corp., Talecris Holdings LLC and Bayer
Healthcare LLC and any amendments thereto.]

 

(x)                                   Unless
otherwise determined by the Committee, a Grantee shall be deemed to have a “Termination
of Employment” upon ceasing full-time, continuous employment with the
Company and all Related Entities (or, in the case of a Grantee who is not an
employee, upon ceasing association with the Company and all Related Entities as
a director, consultant or otherwise), whether for Cause, without Cause, by
death or Disability, upon resignation or retirement, or otherwise. The
Committee in its sole discretion may determine (i) whether any leave of
absence constitutes a Termination of Employment for purposes of the Plan,
(ii) the impact, if any, of any such leave of absence on Awards
theretofore made under the Plan, and (iii) when a change in a Grantee’s
association with the Company constitutes a Termination of Employment for
purposes of the Plan. The Committee may also determine whether a Grantee’s
Termination of Employment is for Cause and the date of termination in such
case.

 

1.3                                 Administration

 

(a)                                  The
Plan shall be administered by the Committee. The members of the Committee shall
be appointed by, and serve at the pleasure of, the Board. To the extent
required for transactions under the Plan to qualify for the exemptions
available under Rule 16b-3, all actions relating to Awards to persons subject
to Section 16 of the Exchange Act shall be taken by the Board unless each
person who serves on the Committee is a “non-employee director” within the
meaning of Rule 16b-3 or such actions are taken by a subcommittee of the
Committee (or the Board) comprised solely of “non-employee directors”. To the
extent required for compensation realized from Awards under the Plan to be
deductible by the Company pursuant to Section 162(m) of the Code, the members
of the Committee or a subcommittee of thereof (or of the Board) shall be “Outside
Directors” within the meaning of Section 162(m) of the Code.

 

3

 

(b)                                 The
Committee or a subcommittee thereof (which hereinafter shall also be referred
to as the Committee) shall have the authority (i) to exercise all of the powers
granted to it under the Plan, (ii) to construe, interpret and implement the
Plan and any Award Agreements, (iii) to prescribe, amend and rescind rules
and regulations relating to the Plan, including rules governing its own
operations, (iv) to make all determinations necessary or advisable in
administering the Plan, (v) to correct any defect, supply any omission and
reconcile any inconsistency in the Plan, (vi) to amend the Plan to reflect changes
in applicable law, and (vii) to determine whether, to what extent and under
what circumstances Awards may be settled or exercised in cash, shares of Common
Stock, other securities, other Awards or other property, or canceled, forfeited
or suspended and the method or methods by which Awards may be settled,
canceled, forfeited or suspended.

 

(c)                                  Actions
of the Committee shall be taken by the vote of a majority of its members. Any
action may be taken by a written instrument signed by a majority of the
Committee members, and action so taken shall be fully as effective as if it had
been taken by a vote at a meeting.

 

(d)                                 The
determination of the Committee on all matters relating to the Plan or any Award
Agreement shall be final, binding and conclusive.

 

(e)                                  No
member of the Board or the Committee or any affiliate thereof (each such person
a “Covered Person”) shall have any liability to any person (including, without
limitation, any Participant) for any action taken or omitted to be taken or any
determination made in good faith with respect to the Plan or any Award. Each
Covered Person shall be indemnified and held harmless by the Company against
and from any loss, cost, liability or expense (including attorneys’ fees) that
may be imposed upon or incurred by such Covered Person in connection with or
resulting from any action, suit or proceeding to which such Covered Person may
be a party or in which such Covered Person may be involved by reason of any
action taken or omitted to be taken under the Plan and against and from any and
all amounts paid by such Covered Person, with the Company’s approval, in
settlement thereof, or paid by such Covered Person in satisfaction of any
judgment in any such action, suit or proceeding against such Covered Person,
provided that the Company shall have the right, at its own expense, to assume
and defend any such action, suit or proceeding and, once the Company gives
notice of its intent to assume the defense, the Company shall have sole control
over such defense with counsel of the Company’s choice. The foregoing right of
indemnification shall not be available to a Covered Person to the extent that a
court of competent jurisdiction in a final judgment or other final
adjudication, in either case, not subject to further appeal, determines that
the acts or omissions of such Covered Person giving rise to the indemnification
claim resulted from such Covered Person’s bad faith, fraud or willful criminal
act or omission. The foregoing right of indemnification shall not be exclusive
of any other rights of indemnification to which Covered Persons may be entitled
under the Company’s Certificate of Incorporation or Bylaws, as a matter of law,
or otherwise, or any other power that the Company may have to indemnify such
persons or hold them harmless.

 

(f)                                    Notwithstanding
anything to the contrary contained herein: 
(i) until the Board shall appoint the members of the Committee, the
Plan shall be administered by the Board

 

4

 

and (ii) the Board
may, in its sole discretion, at any time and from time to time, grant Awards or
resolve to administer the Plan. In either of the foregoing events, the Board
shall have all of the authority and responsibility granted to the Committee
herein.

 

1.4                                 Persons
Eligible for Awards

 

Awards
under the Plan may be made to such Key Persons as the Committee shall select in
its discretion.

 

1.5                                 Types
of Awards Under the Plan

 

Awards
may be made under the Plan in the form of stock options, including Incentive
Stock Options, as set forth in Article II.

 

1.6                                 Shares
Available for Awards

 

(a)                                  Total
shares available. The total number of shares of Common Stock, which may be
transferred pursuant to Awards granted under the Plan shall not exceed
1,449,873 shares of Common Stock , of which 1,449,873  shares may be granted in the form of
Incentive Stock Options. Such shares may be authorized but unissued Common
Stock or authorized and issued Common Stock held in the Company’s treasury or
acquired by the Company for the purposes of the Plan. The Committee may direct
that any stock certificate evidencing shares issued pursuant to the Plan shall
bear a legend setting forth such restrictions on transferability as may apply
to such shares pursuant to the Plan. If any Award is forfeited or otherwise terminates
or is canceled without the delivery of shares of Common Stock, shares of Common
Stock are surrendered or withheld from any Award to satisfy a Grantee’s income
tax withholding obligations, or shares of Common Stock owned by a Grantee are
tendered to pay the exercise price of options granted under the Plan, then the
shares covered by such forfeited, terminated or canceled Award or which are
equal to the number of shares surrendered, withheld or tendered shall again
become available for transfer pursuant to Awards granted or to be granted under
this Plan. Any shares of Common Stock delivered by the Company, any shares of
Common Stock with respect to which Awards are made by the Company and any
shares of Common Stock with respect to which the Company becomes obligated to
make Awards, through the assumption of, or in substitution for, outstanding
awards previously granted by an acquired entity, shall not be counted against
the shares available for Awards under this Plan.

 

(b)                                 Adjustments.
The number of shares of Common Stock covered by each outstanding Award, the
number of shares available for Awards, and the price per share of Common Stock
covered by each such outstanding Award shall be proportionately adjusted, as
determined in the sole discretion of the Committee, for any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, recapitalization, combination or
reclassification of the Common Stock. After any adjustment made pursuant to
this paragraph, the number of shares subject to each outstanding Award shall be
rounded to the nearest whole number. In the event the Company makes an
extraordinary distribution of cash or assets to the holders of the Common Stock
exceeding on a per share basis 10% of the Fair Market Value of a share of
Common Stock, the Committee may, in its sole

 

5

 

discretion, equitably
adjust the Option Exercise Price and/or number of shares of Common Stock
covered by the Award.

 

ARTICLE II

 

AWARDS UNDER THE PLAN

 

2.1                                 Award
Agreements

 

Each
Award granted under the Plan shall be evidenced by an Award Agreement which
shall contain such provisions as the Committee in its discretion deems
necessary or desirable. Such provisions may include, without limitation, a
requirement that the Grantee acknowledge that such shares are acquired for
investment purposes only, and a right of first refusal exercisable by the
Company in the event that the Grantee’s employment is terminated. The Committee
may grant Awards in tandem with or in substitution for any award granted under
any other plan of the Company. A Grantee shall have no rights with respect to
an Award unless such Grantee accepts the Award within such period as the
Committee shall specify by executing an Award Agreement in such form as the
Committee shall determine and, if the Committee shall so require, makes payment
to the Company in such amount as the Committee may determine.

 

2.2                                 No
Rights as a Shareholder

 

No
Grantee of an Award (or other person having rights pursuant to such Award)
shall have any of the rights of a shareholder of the Company with respect to
shares subject to such Award until the exercise of the option awarded and the
issuance of a stock certificate to such person for such shares. Except as
otherwise provided in Section 1.6(b), no adjustment shall be made for
dividends, distributions or other rights (whether ordinary or extraordinary,
and whether in cash, securities or other property) for which the record date is
prior to the date such stock certificate is issued.

 

2.3                                 Grant
of Stock Options

 

(a)                                  The
Committee may grant stock options, including Incentive Stock Options, to
purchase shares of Common Stock from the Company, to such Key Persons, in such
amounts and subject to such terms and conditions, as the Committee shall
determine in its sole discretion.

 

(b)                                 Each
Award Agreement with respect to a stock option shall set forth the Option
Exercise Price, which shall be at least 100% of the Fair Market Value of a
share of Common Stock on the date the option is granted (except as permitted in
connection with the assumption or issuance of options in a transaction to which
Section 424(a) of the Code applies).

 

(c)                                  Each
Award Agreement with respect to a stock option shall set forth the periods
during which the Award evidenced thereby shall be exercisable, whether in whole
or in

 

6

 

part. Such periods shall
be determined by the Committee in its sole discretion; provided, however,
that no Incentive Stock Option shall be exercisable more than ten (10) years
after the date of grant.

 

(d)                                 To
the extent that the aggregate Fair Market Value (determined as of the time the
option is granted) of the stock with respect to which Incentive Stock Options
granted under this Plan and all other plans of the Company are first
exercisable by any Grantee during any calendar year shall exceed the maximum
limit (currently, $100,000), if any, imposed from time to time under Section
422 of the Code, such options shall be treated as nonqualified stock options.

 

(e)                                  Notwithstanding
the provisions of Sections 2.3(b) and (c), to the extent required under Section
422 of the Code, an Incentive Stock Option may not be granted under the Plan to
an individual who, at the time the option is granted, owns stock possessing
more than 10% of the total combined voting power of all classes of stock of his
or her employer corporation or of its parent or subsidiary corporations (as
such ownership may be determined for purposes of Section 422(b)(6) of the Code)
unless (i) at the time such Incentive Stock Option is granted the Option
Exercise Price is at least 110% of the Fair Market Value of the shares subject
thereto and (ii) the Incentive Stock Option by its terms is not exercisable
after the expiration of five (5) years from the date granted.

 

2.4                                 Exercise
of Stock Options

 

Each
stock option granted under the Plan shall be exercisable as follows:

 

(a)                                  A
stock option shall become exercisable at such time or times as determined by
the Committee.

 

(b)                                 Unless
the applicable Award Agreement otherwise provides, a stock option may be
exercised from time to time as to all or part of the shares as to which such
Award is then exercisable (but, in any event, only for whole shares). A stock
option shall be exercised by written notice to the Company, on such form and in
such manner as the Committee shall prescribe; provided that such Grantee
wishing to exercise a stock option prior to the consummation of an Initial
Public Offering must be a party to the Stockholders’ Agreement prior to
exercise.

 

(c)                                  Any
written notice of exercise of a stock option shall be accompanied by payment of
the Option Exercise Price for the shares being purchased. Such payment shall be
made in cash (by certified check or as otherwise permitted by the Committee)
or, if authorized by the Committee in its sole discretion, the Company may
accept payment (i) in outstanding shares of stock, or (ii) by delivery of an
unconditional and irrevocable undertaking by a broker to deliver promptly to
the Company sufficient funds to pay the exercise price.

 

(d)                                 Promptly
after receiving payment of the full Option Exercise Price, the Company shall,
subject to the provisions of Section 3.3 (relating to certain restrictions), deliver
to the Grantee or to such other person as may then have the right to exercise
the Award, a

 

7

 

certificate or
certificates for the shares of Common Stock for which the Award has been
exercised.

 

2.5                                 Cancellation
and Termination of Stock Options

 

The
Committee may, at any time and in its good faith discretion, determine that any
outstanding stock options granted under the Plan, whether or not vested, will
be canceled and terminated and that in connection with such cancellation and
termination the holder of such options (i) shall, to the extent such options
are vested, receive for each share of Common Stock subject to such Award a cash
payment (or the delivery of shares of stock, other securities or a combination
of cash, stock and securities equivalent to such cash payment) equal to the
difference, if any, between the amount determined by the Committee to be the
fair market value of the Common Stock and the exercise price per share
multiplied by the number of shares of Common Stock subject to such Award;
provided that if such product is zero or less or to the extent that the Award
is not then exercisable, the stock options will be canceled and terminated
without payment therefor, and (ii) may (in the sole discretion of the
Committee), to the extent such stock options are not vested, receive for each
share of Common Stock subject to such Award a cash payment (or the delivery of
shares of stock, other securities or a combination of cash, stock and
securities equivalent to such cash payment) equal to the difference, if any,
between the amount determined by the Committee to be the fair market value of
the Common Stock and the exercise price per share multiplied by the number of
shares of Common Stock subject to such Award.

 

2.6                                 Termination
of Employment

 

(a)                                  Except
to the extent otherwise provided in paragraphs (b) and (c) below or in the
applicable Award Agreement, all stock options not theretofore exercised shall
terminate upon the Grantee’s Termination of Employment for any reason.

 

(b)                                 Except
to the extent otherwise provided in the applicable Award Agreement, if a
Grantee’s Termination of Employment is for any reason other than death or
dismissal for Cause, the Grantee may exercise any outstanding stock option on
the following terms and conditions:  (i)
only stock options that have vested under the terms of the applicable Award
Agreement as of the date of such Termination of Employment may be exercised;
and (ii) exercise must occur within ninety (90) days after the Termination
of Employment, except that this ninety (90) day period shall be increased to
one (1) year if the Termination of Employment is by reason of Disability, but
in no event after the expiration date of the Award as set forth in the Award
Agreement. In the case of an Incentive Stock Option, the term “Disability” for
purposes of the preceding sentence shall have the meaning given to it by
Section 422(c)(6) of the Code.

 

(c)                                  Except
to the extent otherwise provided in the applicable Award Agreement, if a
Grantee dies while employed by the Company or a Related Entity, or after a
Termination of Employment but during the period in which the Grantee’s stock
options are exercisable pursuant to paragraph (b) above, any outstanding stock
option shall be exercisable on the following terms and conditions:  (i) only stock options that have vested under
the terms of the

 

8

 

applicable Award
Agreement as of the date of death may be exercised; and (ii) exercise must
occur by the earlier of the first anniversary of the Grantee’s termination,
death or the expiration date of the Award. Any such exercise of an Award
following a Grantee’s death shall be made only by the Grantee’s executor or
administrator, unless the Grantee’s will specifically disposes of such Award,
in which case such exercise shall be made only by the recipient of such
specific disposition. If a Grantee’s personal representative or the recipient
of a specific disposition under the Grantee’s will shall be entitled to
exercise any Award pursuant to the preceding sentence, such representative or
recipient shall be bound by all the terms and conditions of the Plan and the
applicable Award Agreement which would have applied to the Grantee.

 

ARTICLE III

 

MISCELLANEOUS

 

3.1                                 Amendment
of the Plan; Modification of Awards

 

(a)                                  The
Board may from time to time suspend, discontinue, revise or amend the Plan in
any respect whatsoever, except that no such amendment shall materially impair
any rights or materially increase any obligations of the Grantee under any
Award theretofore made under the Plan without the consent of the Grantee (or,
after the Grantee’s death, the person having the right to exercise or receive
payment of the Award). For purposes of the Plan, any action of the Board or the
Committee that alters or affects the tax treatment of any Award shall not be
considered to materially impair any rights of any Grantee.

 

(b)                                 Shareholder
approval of any amendment shall be obtained to the extent necessary to comply
with Section 422 of the Code (relating to Incentive Stock Options) or any other
applicable law, regulation or stock exchange listing requirements.

 

(c)                                  The
Committee may amend any outstanding Award Agreement, including, without
limitation, by amendment which would accelerate the time or times at which the
Award becomes unrestricted or may be exercised, or waive or amend any goals,
restrictions or conditions set forth in the Award Agreement. However, any such
amendment (other than an amendment pursuant to paragraphs (a) or (d) of this
Section or an amendment to effect an assumption or other action consistent with
Section 3.6(d) or (e)) that materially impairs the rights or materially
increases the obligations of a Grantee under an outstanding Award shall be made
only with the consent of the Grantee (or, upon the Grantee’s death, the person
having the right to exercise the Award).

 

(d)                                 Notwithstanding
anything to the contrary in this Section, the Board or the Committee shall have
sole discretion to amend the Plan to the extent necessary to preserve fixed
accounting treatment with respect to any Award and any outstanding Award
Agreement shall be deemed to be so amended to the same extent, without
obtaining the consent of any Grantee (or, after the Grantee’s death, the person
having the right to exercise or receive payment of the affected Award), without
regard to whether such amendment adversely affects a Grantee’s rights under the
Plan or such Award Agreement.

 

9

 

3.2                                 Tax
Withholding

 

(a)                                  As
a condition to the receipt of any shares of Common Stock pursuant to the
exercise of stock options, or in connection with any other event that gives
rise to a federal or other governmental tax withholding obligation on the part
of the Company relating to an Award (including, without limitation, FICA tax),
the Company shall be entitled to require that the Grantee remit to the Company
an amount sufficient in the opinion of the Company to satisfy such withholding
obligation.

 

(b)                                 To
the extent permitted by the Committee, in its sole discretion, the Grantee may
satisfy only the minimum statutory withholding obligation imposed under
paragraph (a) by electing to have the Company withhold shares of Common
Stock having a Fair Market Value equal to the amount of tax to be withheld. For
this purpose, Fair Market Value shall be determined as of the date on which the
amount of tax to be withheld is determined (and any fractional share amount
shall be settled in cash).

 

3.3                                 Restrictions

 

(a)                                  If
the Committee shall at any time determine that any consent (as hereinafter
defined) is necessary or desirable as a condition of, or in connection with,
the granting of any Award, the issuance or purchase of shares of Common Stock
or other rights thereunder, or the taking of any other action thereunder (a “Plan
Action”), then no such Plan Action shall be taken, in whole or in part,
unless and until such consent shall have been effected or obtained to the full
satisfaction of the Committee.

 

(b)                                 The
term “consent” as used herein with respect to any action referred to in
paragraph (a) means (i) any and all listings, registrations or
qualifications in respect thereof upon any securities exchange or under any
federal, state or local law, rule or regulation, (ii) any and all written
agreements and representations by the Grantee with respect to the disposition
of shares, or with respect to any other matter, which the Committee shall deem
necessary or desirable to comply with the terms of any such listing,
registration or qualification or to obtain an exemption from the requirement
that any such listing, qualification or registration be made, (iii) any and all
consents, clearances and approvals in respect of a Plan Action by any
governmental or other regulatory bodies, and (iv) any and all consents or
authorizations required to comply with, or required to be obtained under,
applicable local law or otherwise required by the Committee. Nothing herein
shall require the Company to list, register or qualify the shares of Common
Stock on any securities exchange.

 

(c)                                  Any
shares of Common Stock awarded on exercise of a stock option shall be subject
to such restrictions and conditions as are set forth in the Award Agreement.

 

3.4                                 Nonassignability

 

Except
to the extent otherwise provided in the applicable Award Agreement, no Award or
right granted to any person under the Plan shall be assignable or transferable
other than by will or by the laws of descent and distribution, and all such
Awards and rights shall be

 

10

 

exercisable
during the life of the Grantee only by the Grantee or the Grantee’s legal
representative. Notwithstanding the immediately preceding sentence, the
Committee may permit a Grantee to transfer any stock option which is not an
Incentive Stock Option to one or more of the Grantee’s immediate family members
or to trusts established in whole or in part for the benefit of the Grantee
and/or one or more of such immediate family members. For purposes of the Plan,
(i) the term “immediate family” shall mean the Grantee’s spouse and
issue (including adopted and step children) and (ii) the phrase “immediate
family members or to trusts established in whole or in part for the benefit of
the Grantee and/or one or more of such immediate family members” shall be
further limited, if necessary, so that neither the transfer of a nonqualified
stock option to such immediate family member or trust, nor the ability of a
Grantee to make such a transfer shall have adverse consequences to the Company
or the Grantee by reason of Section 162(m) of the Code. For the avoidance of
doubt, an event by which such trust ceases to satisfy the above shall be deemed
to be a prohibited assignment.

 

3.5                                 Requirement
of Notification Upon Disqualifying Disposition Under Section 421(b) of the Code

 

If any
Grantee shall make any disposition of shares of Common Stock issued pursuant to
the exercise of an Incentive Stock Option under the circumstances described in
Section 421(b) of the Code (relating to certain disqualifying dispositions),
such Grantee shall notify the Company of such disposition within ten (10) days
thereof.

 

3.6                                 Change
in Control.

 

(a)                                  A
Change in Control means the occurrence of any one of the following events:

 

(i)                                     any
Person, other than 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 Company representing (A) more than 30% of the total voting
power of the Company’s then outstanding securities generally eligible to vote
for the election of directors (the “Company Voting Securities”) and (B)
a greater percentage of the then outstanding Company Voting Securities that are
than held by all the Permitted Investors in the aggregate; provided, however,
that any of the following acquisitions shall not be deemed to be a Change in
Control:  (1) by the Company or any
subsidiary or affiliate, (2) by any employee benefit plan (or related trust)
sponsored or maintained by the Company 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 Company or any of its subsidiaries
or affiliates (a “Business

 

11

 

Combination”),
unless immediately following such Business Combination:

 

(A)                              more
than 50% of the total voting power of (x) the corporation resulting from
such Business Combination (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 Company Voting Securities that were outstanding immediately
prior to such Business Combination (or, if applicable, is represented by shares
into which such Company Voting Securities were converted pursuant to such
Business Combination), and such voting power among the holders thereof is in
substantially the same proportion as the voting power of such Company Voting
Securities among the holders thereof immediately prior to the Business
Combination,

 

(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 were Incumbent Directors
at the time of the Board’s approval of the execution of the initial agreement
providing for such Business Combination;

 

(any Business Combination 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 Company approve a plan of complete liquidation or
dissolution of the Company; or

 

12

 

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

 

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

 

(b)                                 Notwithstanding
anything to the contrary contained herein, upon the occurrence of a Change in
Control specified in paragraph (a)(i) above and immediately prior to the
occurrence of a Change in Control specified in paragraph (a)(ii) or (a)(iv)
above, the Options shall be treated as set forth in the applicable Award
Agreement.

 

(c)                                  The
following shall occur if Awards “Fully Vest”: 
(i) any stock options granted under the Plan shall become fully
vested and immediately exercisable, and (ii) any performance goals
applicable to Awards will be deemed to be fully satisfied.

 

(d)                                 Except
to the extent otherwise provided in the applicable Award Agreement, upon the
occurrence of any Change in Control, or upon the occurrence of a Non-Qualifying
Transaction where Awards are not assumed by the Surviving Corporation or Parent
Corporation or the Surviving Corporation or Parent Corporation does not make
provision for Grantees to participate in a stock option or similar equity
incentive plan with terms that, taken as a whole, are (as determined by the
Committee in its sole discretion) not materially less favorable than the Plan,
the Committee may, in its sole discretion, (i) Fully Vest Awards,
(ii) determine that any or all outstanding Awards granted under the Plan,
whether or not exercisable, will be canceled and terminated and that in
connection with such cancellation and termination the holder of such Award may
receive for each share of Common Stock subject to such Awards a cash payment
(or the delivery of shares of stock, other securities or a combination of cash,
stock and securities equivalent to such cash payment) equal to the difference,
if any, between the consideration received by shareholders of the Company in
respect of a share of Common Stock in connection with such transaction and the
purchase price per share, if any, under the Award multiplied by the number of
shares of Common Stock subject to such Award; provided that if such product is
zero or less or to the extent that the Award is not then exercisable, the
Awards will be canceled and terminated without payment therefor or
(iii) provide that the period to exercise stock options granted under the
Plan shall be extended (but not beyond the expiration of such option).

 

(e)                                  The
Committee shall determine in its sole discretion whether an Award shall be
considered “assumed” or “substituted”. Without limiting the foregoing, for the
purposes of this Section 3.6, a stock option shall be considered “assumed” or “substituted”
if in the reasonable determination of the Committee (i) the aggregate
intrinsic value (the difference between the then Fair Market Value as
reasonably determined by the Committee and the exercise

 

13

 

price per share of Common
Stock multiplied by the number of shares of Common Stock subject to such award)
of the assumed (or substituted) Award immediately after the Change in Control
is substantially the same as the aggregate intrinsic value of such Award
immediately before such transaction, (ii) the ratio of the exercise price
per assumed (or substituted) Award to the fair market value per share of
successor corporation stock immediately after the Change in Control is
substantially the same as such ratio for such Award immediately before such
transaction and (iii) the Award is exercisable for the consideration
approved by the Committee (including shares of stock, other securities or
property or a combination of cash, stock, securities and other property).

 

3.7                                 No
Right to Employment

 

Nothing
in the Plan or in any Award Agreement shall confer upon any Grantee the right
to continue in the employ of or association with the Company or affect any
right which the Company may have to terminate such employment or association at
any time (with or without Cause).

 

3.8                                 Nature
of Payments

 

Any
and all grants of Awards and issuances of shares of Common Stock under the Plan
shall constitute a special incentive payment to the Grantee and shall not be
taken into account in computing the amount of salary or compensation of the
Grantee for the purpose of determining any benefits under any pension,
retirement, profit-sharing, bonus, life insurance or other benefit plan of the
Company or under any agreement with the Grantee, unless such plan or agreement
specifically provides otherwise.

 

3.9                                 Non-Uniform
Determinations

 

The
Committee’s determinations under the Plan need not be uniform and may be
made by it selectively among persons who receive, or are eligible to receive,
Awards (whether or not such persons are similarly situated). Without limiting
the generality of the foregoing, the Committee shall be entitled, among other
things, to make non-uniform and selective determinations, and to enter into
non-uniform and selective Award Agreements, as to the persons to receive Awards
under the Plan, and the terms and provisions of Awards under the Plan.

 

3.10                           Other
Payments or Awards

 

Nothing
contained in the Plan shall be deemed in any way to limit or restrict the
Company from making any Award or payment to any person under any other plan,
arrangement or understanding, whether now existing or hereafter in effect.

 

3.11                           Section
Headings

 

The
section headings contained herein are for the purpose of convenience only and
are not intended to define or limit the contents of the sections.

 

14

 

3.12                           Effective
Date and Term of Plan

 

Unless
sooner terminated by the Board, the Plan, including the provisions respecting
the grant of Incentive Stock Options, shall terminate the day before the tenth
anniversary of the adoption of the Plan by the Board. All Awards made under the
Plan prior to its termination shall remain in effect until such Awards have
been satisfied or terminated in accordance with the terms and provisions of the
Plan and the applicable Award Agreements.

 

3.13                           Governing
Law

 

All
rights and obligations under the Plan shall be construed and interpreted in
accordance with the laws of the State of New York, without giving effect to
principles of conflict of laws.

 

3.14                           Severability;
Entire Agreement

 

If any
of the provisions of this Plan or any Award Agreement is finally held to be
invalid, illegal or unenforceable (whether in whole or in part), such provision
shall be deemed modified to the extent, but only to the extent, of such
invalidity, illegality or unenforceability and the remaining provisions shall
not be affected thereby; provided, that if any of such provisions
is finally held to be invalid, illegal, or unenforceable because it exceeds the
maximum scope determined to be acceptable to permit such provision to be
enforceable, such provision shall be deemed to be modified to the minimum
extent necessary to modify such scope in order to make such provision
enforceable hereunder. The Plan and any Award Agreements contain the entire
agreement of the parties with respect to the subject matter thereof and
supersede all prior agreements, promises, covenants, arrangements,
communications, representations and warranties between them, whether written or
oral with respect to the subject matter thereof.

 

3.15                           No
Third Party Beneficiaries

 

Except
as expressly provided therein, neither the Plan nor any Award Agreement shall
confer on any person other than the Company and the grantee of any Award any
rights or remedies thereunder.

 

3.16                           Successors
and Assigns

 

The
terms of this Plan shall be binding upon and inure to the benefit of the
Company and its successors and assigns.

 

3.17                           Waiver
of Claims

 

Each
grantee of an Award recognizes and agrees that prior to being selected by the
Committee to receive an Award he or she has no right to any benefits hereunder.
Accordingly, in consideration of the grantee’s receipt of any Award hereunder,
he or she expressly waives any right to contest the amount of any Award, the
terms of any Award Agreement, any determination, action or omission hereunder
or under any Award Agreement by

 

15

 

the
Committee, the Company or the Board, or any amendment to the Plan or any Award
Agreement (other than an amendment to this Plan or an Award Agreement to which his
or her consent is expressly required by the express terms of the Plan or an
Award Agreement).

 

16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]