Document:

Exhibit 10.24.1

 

 

November 19,
2004

 

Mary
Kuhn

Bayer
Plasma

4101
Research Commons

79
Alexander Drive

Research
Triangle Park, North Carolina 27709

 

Dear
Mary:

 

As
you know, within a few days, NPS LLC, or a successor or an affiliate thereof (collectively,
“NPS” or the “Company”) is expected to enter into a joint contribution
agreement by and among Bayer Healthcare LLC (“Bayer”) and NPS (the “Contribution
Agreement”) under which NPS will agree, subject to certain conditions, to
purchase substantially all of the assets, and assume certain liabilities, of
Bayer’s plasma business. On behalf of NPS, I am pleased to offer you the
position outlined in the Employment Term Sheet attached to this letter as Exhibit A.
The purpose of this letter is to confirm your employment with NPS and outline
the basic terms of your employment with NPS. You will receive more detailed
information about the terms of your employment with NPS and the benefit plans
in which you will be able to participate in the near future.

 

As
a key executive, your leadership in and knowledge of the plasma business
industry are vital to the success of NPS. Consequently, we have designed a
compensation program for senior executives that will significantly reward
financial performance and achievement of the Company’s business plan. As
discussed below, the most significant change to your current compensation
structure with Bayer is your participation in an equity incentive program at
NPS that should provide you with an exciting incentive compensation opportunity.

 

Upon
beginning your employment with NPS on the Closing Date (as such term is defined
in the Contribution Agreement), and during the course of your employment with
NPS, you will receive an annual base salary of at least $280,000.

 

In
addition, while you are employed by the Company, you will be entitled to
participate in an annual bonus program for senior
executives (the “NPS Bonus Plan”) that is similar to the short-term incentive
bonus program sponsored by Bayer in which you currently participate. Under the
NPS Bonus Plan, your individual annual bonus target will increase from 35% to
45%. Bonuses will be paid under the NPS Bonus Plan based upon, among other
things, the achievement by the Company of operating targets derived from the
Company’s annual business plan and by you of certain individual performance
goals. In order to receive any bonus under the NPS Bonus Plan, you must be
employed full time in good standing by the Company on the date any bonus is
paid according to the terms of the NPS Bonus Plan.

 

While
employed by the Company, you will also be entitled to participate in all
employee benefit plans, programs and arrangements sponsored by the Company in
which senior executives of the Company are customarily eligible to participate,
subject to the terms of those plans. The Company intends to provide medical, disability,
and life insurance plans; a vacation policy; and a 401(k) and a
supplemental savings plan. For the purpose of benefits eligibility under these
plans, your prior service with Bayer will be honored to the extent permitted
under the terms of such plans.

 

As
referenced above, as a senior executive of the Company you will also be
entitled to participate in an equity incentive program to be established by the
Company, on terms to be determined by the Company.

 

299 PARK AVENUE | NEW YORK, NY 10171

 

 

Some
of the basic terms of the equity incentive program that the Company intends to
incorporate into the full program, however, are outlined in Exhibit A.

 

Please
note that this offer of employment with NPS is subject to (i) the successful
closing of the transactions contemplated by the Contribution Agreement (which
include, among other things, the purchase by NPS of substantially all of the
Bayer plasma business assets) on the Closing Date and (ii) your continued
employment with the Bayer plasma business through the Closing Date. This offer
of employment is also contingent on your signing and returning to us the
attached Acknowledgment. The terms of your employment will be governed by the
laws of the state of New York. Any controversy with respect to your employment
will be subject to arbitration under the rules of the American Arbitration
Association governing employment disputes.

 

Please
acknowledge your acceptance of this offer of employment with the Company, subject
to the conditions set forth in the previous paragraph, by carefully reading and
signing the attached Acknowledgment and faxing it to 212-894-5363 Attn: Lawrence
Stern, and mailing the original to Lawrence Stern c/o Chrissy Schiavo, Cerberus
Capital Management, 299 Park Avenue, New York, N.Y., 10171, no later than November 29,
2004.

 

If
you have any questions, please feel free to contact me at 412-760-4062.

 

I
look forward to having you on board as  part of the NPS leadership
team!

 

Sincerely,

 

 

Lawrence
Stern

 

Acting
CEO, NPS

 

 

Attachments

 

2

 

Exhibit A

 

EMPLOYMENT TERM SHEET

FOR Mary Kuhn

 

The
following is a term sheet summarizing the principal terms of employment for
Mary Kuhn with NPS LLC or one of its successors or affiliates (collectively, the
“Company”) (the ‘Term Sheet”). For the purposes of this Term Sheet, Mary Kuhn
shall be referred to as “Executive,” Cerberus Capital Management, L.P. shall be
referred to as “Cerberus,” and the Joint Contribution Agreement, by and among
Bayer Healthcare LLC (“Bayer”) and the Company (the “Contribution Agreement”), shall
be referred to as the “Contribution Agreement.”

 

	
  1.
  Term of Employment:

  	
   

  	
  Unless
  terminated earlier pursuant to Section 6 or 7 of this Term Sheet, the
  initial term of the Executive’s employment with the Company shall commence on
  the Closing Date (as defined in the Contribution Agreement).

  
	
   

  	
   

  	
   

  
	
  2.
  Title/Duties:

  	
   

  	
  During
  the Term of Employment, the Executive will be employed as Senior Vice
  President, Operations and will have such authority, responsibilities and
  duties as are customarily attendant to that position and/or a position of
  similar authority and responsibility.

  
	
   

  	
   

  	
   

  
	
  3.
  Base Salary:

  	
   

  	
  $280,000
  per year (not to be less than current salary plus any increases received from
  Bayer following the date of this letter). The board of directors of the
  Company (the “Board”) shall annually review Executive’s Base Salary to
  determine if any increases therein shall be made.

  
	
   

  	
   

  	
   

  
	
  4.
  Annual Bonus Opportunity:

  	
   

  	
  Executive
  will be eligible to participate in an annual bonus plan to be established by
  the Company. Under this plan, Executive’s target annual bonus shall be 45% of
  Executive’s Base Salary. The bonus earned under this plan will be based upon
  (1) achievement by the Company of performance targets derived from the
  Company’s business plan, and (2) achievement by the individual of
  individual baseline and stretch goals. The Board, in its sole discretion,
  will determine whether the Company and individual performance targets have
  been achieved. Among other things, Executive must have been continually
  employed in good standing during  the
  applicable bonus plan year and on the date any bonus is paid under this plan
  in order to be eligible to receive such bonus.

  
	
   

  	
   

  	
   

  
	
  5.
  Equity Participation Program:

  	
   

  	
  The
  Board will establish an equity incentive plan, subject to the approval of the
  Company’s shareholders, providing for the grant of options or stock to
  management of the Company to purchase equity in the Company. Under the Plan,
  the Company will make available up to 10% of the total outstanding equity of
  the Company (as of the Closing Date) for issuance
  under awards to be granted under the Plan. The Plan will be administered by
  the Board. Further details will be provided following the approval of the
  Company shareholders.

  
	
   

  	
   

  	
   

  
	
  6. Termination/ Severance: Good Reason/ without
  Cause

  	
   

  	
  In
  the event of a termination of the Executive’s employment by the Company
  without Cause or by Executive for Good Reason (other than on account of a
  Change of Control), the Executive will be entitled to the following upon
  execution of a valid release of claims against the Company:

  

 

 

	
   

  	
   

  	
  ·      A lump sum
  payment of all accrued and unpaid salary and vacation pay (“Accrued
  Benefits”);

   

  ·      Continued
  payment (in accordance with the normal payroll practices of the Company) of
  the monthly amount of Base Salary in effect as of the date of termination
  for a period that is equal to at least 12 months;

   

  ·      Continuation
  of benefits for the period during which the monthly installments are paid;
  and

   

  
	
   

  	
   

  	
  ·      A lump sum
  payment of any accrued, unpaid bonus under the Company’s annual bonus plan,
  the amount of which will based upon the achievement of performance targets as
  of the date of termination of employment.

  
	
   

  	
   

  	
   

  
	
  7. Termination/Severance: Death/Disability/Cause
  or without Good Reason

  	
   

  	
  In
  the event of a termination of the Executive’s employment by the Company
  for Cause or as a result of death or Disability or by Executive without Good
  Reason, the Executive will be entitled to Accrued Benefits.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Disability”
  means inability to perform duties for six (6) consecutive months and,
  within thirty (30) days after a notice of termination is given to Executive,
  Executive has not returned to work.

  
	
   

  	
   

  	
   

  
	
  8. Definitions of Cause and Good Reason:

  	
   

  	
  “Cause”
  means (i) conviction of, or plea of guilty or nolo contendere to, a misdomeanor
  involving moral turpitude or a felony; or (ii) a willful and intentional
  breach of the Employment Agreement by Executive which is materially
  economically harmful to the Company; (iii) willful misconduct by
  Executive that is materially economically injurious to the Company,
  (iv) Executive’s willful contravention of specific lawful directions
  from the Board or (v) intentional breach of Executive’s covenant not to
  compete or confidentiality. No act, or failure to act, shall be considered
  “willful” unless committed in bad faith and without a reasonable belief that
  the act or omission was in the best interests of the Company.

   

  “Good
  Reason” means, without Executive’s consent, (i) the failure of Executive
  to be appointed to the position set forth; (ii) the assignment to
  Executive of duties materially inconsistent with Executive’s status as
  [title] or an adverse alteration in the nature of Executive’s duties and/or
  responsibilities, reporting obligations, titles or authority; (iii) a
  reduction by the Company in Executive’s Base Salary or annual short term
  bonus; or (iv) the relocation of Executive’s principal office
  location to a location that is more than 50 miles away. The Company shall
  have 30 days after receipt of notice from Executive in writing
  specifying the deficiency to cure the deficiency that would result in Good
  Reason.

  
	
   

  	
   

  	
   

  
	
  9. Non-Competition; Non- Solicitation and
  Confidentiality:

  	
   

  	
  For
  a period of one year following the Executive’s termination of employment, the Executive
  will not enter into any employment or service relationship with or have any
  economic interest in (subject to customary carve-outs for public holdings)
  any competitor in the business of manufacturing, marketing, distribution,
  sale and or research and development of all plasma-derived products. In
  addition for a period of one year following the
  Executive’s termination of employment for any reason, the Executive will not
  solicit any of the Company’s customers or employees or independent
  contractors of the Company during that period and the Executive shall not be
  permitted at any time to disclose any

  

 

 

	
   

  	
   

  	
  confidential
  information of the Company or Cerberus, unless required by law or an order of
  a court or governmental agency with jurisdiction. In the event of the breach
  by the Executive of any of the foregoing covenants, the Company shall have
  the right to exercise.
  customary remedial measures, including, but not limited to, ceasing
  the payment of any severance payments.

  
	
   

  	
   

  	
   

  
	
  10.
  Inventions 

  	
   

  	
  The
  Executive agrees that all discoveries, inventions, improvement and
  innovations related to the Company’s business discovered, invented or
  originated by the Executive during his employment or within a
  12-month period after termination of employment is the exclusive property of
  the Company.Exhibit 10.24.3

 

 

	
   

  	
  Ms. Kari Heerdt

  Senior Vice President

  Human Resources

  79 TW Alexander Drive

  4101 Research Commons

  Research Triangle Park

  North Carolina  27709

  Telephone:  919-316-6543

  Facsimile:  919-316-6523

  

 

December 19,
2008

 

Mary
Joan Kuhn

4533
Arden Forest Road

Fuquay
Varina, NC 27526

 

Dear
Mary,

 

The purpose of this letter is to change the terms of your severance as
stated in your Employment Letter with the Company dated November 19, 2004
(copy enclosed).  With your consent, the
Company is modifying your Employment Letter with respect to the terms of
severance to ensure that you, referred to as the ‘Executive”, have severance
protection going forward, and that it complies with the new Internal Revenue
Code Section 409A.  The Company is
required to comply with Section 409A by December 31, 2008.  Violations of this section involve a 20% tax
penalty for executives, and affirmative tax reporting obligations under which
employers must disclose violations on W-2s. 
Accordingly, with your agreement, the following shall be your amended
severance terms with the Company:

 

1.             Severance
Benefits.  If at any
time:  (i) Talecris terminates your
employment without Cause (as defined below), or (ii) you resign from your
position with Good Reason (as defined below), you will be entitled to, subject
to the terms of this letter agreement, the following Severance Benefits:

 

a.     An amount in cash equal to
one (1) year’s current Base Salary, payable in a lump sum within sixty
(60) days of Separation from Service;

 

b.     A lump sum payment of all
accrued and unpaid salary and vacation pay, payable in a lump sum within sixty
(60) days of Separation from Service;

 

c.     A lump sum payment of any of
any accrued, unpaid bonus under the Company’s annual bonus plan, the amount of
which will be based upon the achievement of performance targets as of the date
of Separation from Service, payable in a lump sum within sixty (60) days of
Separation from Service; and

 

d.     if Executive is enrolled in
benefits at the time of Executive’s Separation from Service, he or she will be
provided a lump sum payment in the amount equal to the cost of COBRA coverage
for twelve (12) months based upon the cost of such coverage on the date of
Separation from Service, payable within sixty (60) days following Executive’s
Separation from Service.

 

 

2.             Definitions.   The following words and phrases have the
following meanings when used in this letter agreement:

 

a.             Cause.  “Cause” means:  (i) conviction of, or plea of guilty or
nolo contendere to, a misdemeanor involving moral turpitude or a felony; or (ii) a
willful and intentional breach of the Employment Agreement by Executive which
is materially economically harmful to the Company; (iii) willful
misconduct by Executive that is materially economically injurious to the
Company, (iv) Executive’s willful contravention of specific lawful
directions from the Board or (v) intentional breach of Executive’s
covenant no to compete or confidentiality. 
No act, or failure to act, shall be considered “willful” unless committed
in bad faith and without a reasonable belief that the act or omission was in
the best interests of the Company.

 

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

 

c.     Good Reason.  “Good Reason” shall
mean, without the Executive’s consent, (i) a material diminution in the
Executive’s “base compensation” within the meaning of Code Section 409A
and relevant authorities thereunder; (ii) an adverse alteration in the
nature of Executive’s duties, responsibilities and/or authority; or (iii) relocation
of the Executive’s office more than 50 miles from its location in Research
Triangle Park, North Carolina.  The
Executive shall provide notice to the Company of the existence of (i) through
(iii) of this Section within a period not to exceed ninety (90) days
of the initial existence of the condition, upon the notice of which the Company
shall have a period of at least thirty (30) days within which to cure any
deficiency that would result in Good Reason.

 

d.     Separation of Service.  For purposes of this Agreement, “Separation
from Service” shall mean the termination of services provided by Executive,
whether voluntary or involuntary, as determined by the Company in accordance
with Treas. Reg. §1.409A-1(h).  In
determining whether the Executive has experienced a Separation from Service,
the following provisions shall apply:

 

i.              A Separation from Service
shall occur when the Executive experiences a termination of employment with the
Company and any affiliate in which the Company has more than a 50% ownership
interest (together with the Company, the “Employer”), which shall be considered
to have occurred when the facts and circumstances indicate that either (i) the
Executive is not reasonably expected to perform further services for the
Employer after a certain date, or (ii) that the level of bona fide
services the Executive will perform for the Employer after such date (whether
as an employee or as an independent contractor) will permanently decrease to no
more than 20% of the average level of bona fide services performed by such
Executive (whether as an employee or an independent contractor) over the
immediately preceding 36-month period (or full period of services to the
Employer if the Executive has been providing services to the Employer for less
than 36 months).

 

ii.             If the Executive is on
military leave, sick leave, or other bona fide leave of absence, the employment
relationship between the Executive and the Employer shall be treated as
continuing intact, provided that the period of such leave does not exceed six
months, or longer, so long as the Executive retains a right to

 

2

 

reemployment with the Employer under an applicable statute or by
contract.  If the period of leave exceeds
six months and the Executive does not retain a right to reemployment under an
applicable statute or by contract, the Executive will incur a Separation from
Service as of the first day immediately following the end of such six-month
period.  However, where the Executive’s leave
of absence is due to his or her Disability, a 29-month period of absence will
be substituted for such six-month period. 
In applying the provisions of this paragraph, a leave of absence shall
be considered a bona fide leave of absence only if there is a reasonable
expectation that the Executive will return to perform services for the
Employer.

 

e.             Payment of Benefits.  The Severance Payment described in the
preceding section of this letter agreement shall be  contingent on Executive’s execution of a valid
Release in a form reasonably acceptable to the Company that becomes irrevocable
within sixty (60) days after Executive’s Separation from Service.

 

f.              Tax Withholding.  The Company or other payor is authorized to
withhold from any benefit provided or payment due hereunder, the amount of
withholding taxes due any federal, state or local authority in respect of such
benefit or payment and to take such other action as may be necessary in the
opinion of the Company to satisfy all obligations for the payment of such
withholding taxes.

 

g.             Compliance with Code Section 409A.  This Agreement is intended to comply with (or
be exempt from) Code Section 409A, and the Company shall have complete
discretion to interpret and construe this Agreement and any associated documents
in any manner that establishes an exemption from (or otherwise conforms them
to) the requirements of Code Section 409A. 
If, for any reason including imprecision in drafting, the Agreement does
not accurately reflect its intended establishment of an exemption from (or
compliance with) Code Section 409A, as demonstrated by consistent
interpretations or other evidence of intent, the provision shall be considered
ambiguous and shall be interpreted by the Company in a fashion consistent
herewith, as determined in the sole and absolute discretion of the
Company.  The Company reserves the right
to unilaterally amend this Agreement without the consent of the Executive in
order to accurately reflect its correct interpretation and operation, as well
as to maintain an exemption from or compliance with Code Section 409A.  Nevertheless, and notwithstanding any other
provision of this Agreement, neither the Company nor any of its employees,
directors, or their agents shall have any obligation to mitigate, nor to hold
the Executive harmless from, any or all taxes (including any imposed under Code
Section 409A) arising under this Agreement.

 

h.             Effect on Other Agreements.  This agreement replaces and supersedes all
other and prior severance agreements between Executive and the Company, whether
written or oral or express or implied, that relate to severance benefits.  No representations, promises, assurances or
agreements have been made regarding the subject matter of this agreement,
except such as has been stated herein.

 

i.              Termination. This
Agreement shall terminate upon Executive’s death or employee’s disability
(defined as your inability by reason of
physical or mental impairment to perform your job duties for a period exceeding
12 consecutive weeks).  If this agreement is terminated by reason of
Executive’s death or disability, Executive or Executive’s dependents or estate
will be entitled to the payments and benefits afforded under the Company’s
employee benefit plans, and the Company will have no further obligations under
this agreement.

 

3

 

If
you accept these changes, please sign where indicated below and return a copy
of this letter to me so that we may place it in your personnel file.  If you have any questions, please feel free
to contact me.

 

Sincerely,

 

	
  /s/ Kari Heerdt

  	
   

  
	
  Name:
  Kari Heerdt

  	
   

  
	
  Title:
  Senior Vice President

  	
   

  
	
  Human
  Resources

  	
   

  

 

 

I
accept the changes to my Employment Letter as stated above.

 

	
   

  	
   

  
	
  /s/ Mary Joan
  Kuhn

  	
   

  
	
  Name:
  Mary Joan Kuhn

  	
   

  
	
  Title: Senior Vice
  President, Operations 

  	
   

  
	
   

  	
   

  
	
  December 29, 2008

  	
   

  
	
  Date

  	
   

  

 

	
  Cc:

  	
  Lawrence
  Stern

  
	
   

  	
  File

  

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]