Document:

Exhibit 10.19

 

November        ,
2006

 

International BioResources, L.L.C.

1100 Camellia Boulevard

Suite 201

Lafayette, Louisiana  70508

 

Re:                               Profit-Sharing
Agreement

 

Dear Sir or Madam:

 

In connection with that certain Asset Purchase Agreement (the “Purchase
Agreement”), made and entered on October 31, 2006, by and among IBR-BYR
L.L.C., a Louisiana limited liability company, International BioResources,
L.L.C., a Louisiana limited liability company (the “Parent”), IBR Plasma
Centers, L.L.C., a Louisiana limited liability company, Talecris
Biotherapeutics Holdings Corp., a Delaware corporation, and Talecris Plasma
Resources, Inc., a Delaware corporation (the “Buyer”),  the parties hereto have agreed to enter  into this agreement (the “Profit-Sharing Agreement”)
regarding profit-sharing:

 

(A)          under that certain
Anthrax-Immune Source Plasma and Supply Agreement, dated September 22, 2006, by
and between Emergent Product Development Gaithersburg Inc. (“Emergent”)
and the Parent (including any extension or amendment thereto or contract or
other agreement that is substituted for such agreement, and any other agreement
entered into between (i) Emergent or an Affiliate thereof and (ii) the Buyer or
an Affiliate thereof, regarding the supply of anthrax hyperimmune source plasma
collected at any Acquired Center, Additional Center or Future Acquired Center
(as defined below) during the term of this Profit-Sharing Agreement, the “Emergent
Agreement”);

 

(B)           under that certain
Source Plasma Purchase Agreement, dated August 31, 2004 by and between Cangene
Corporation (“Cangene”) and the Parent, as amended through and including
that certain Amendment 4 to August 31, 2004 Source Plasma Purchase Agreement,
dated June 8, 2006 by and between Cangene and Parent (including any extension
or amendment thereto or contract or other agreement that is substituted for
such anthrax hyperimmune source plasma supply agreement, and any other
agreement entered into between (i) Cangene or an Affiliate thereof and (ii) the
Buyer or an Affiliate thereof, regarding the supply of anthrax hyperimmune
source plasma collected at any Acquired Center, Additional Center or Future
Acquired Center (as defined below) during the term of this Profit-Sharing
Agreement, the “Cangene Agreement”);

 

(C)           for the sale by Parent
or an Affiliate thereof of any anthrax hyperimmune source plasma to (i) Cangene
or an Affiliate thereof, or (ii) Emergent or an Affiliate thereof, collected at
any future plasmapheresis center(s) built and opened or acquired by Parent or
an Affiliate thereof after the Closing Date, provided, however, that the
parties hereto shall not share any Profits from the sale of anthrax hyperimmune
source plasma collected at such opened or acquired center(s) to the extent that
such plasma is collected pursuant to a pre-existing supply agreement that

 

 

the Parent or an Affiliate thereof assumed in connection with
a post-Closing plasmapheresis center acquisition (the “Parent Future
Sales”); and

 

(D)          for the sale by
Parent or an Affiliate thereof of any anthrax hyperimmune source plasma
collected at any Excluded Business and sold to (i) Cangene or an Affiliate
thereof, or (ii) Emergent or an Affiliate thereof (the “Excluded Business
Sales”).

 

Capitalized terms
used herein without definition shall have the meanings ascribed to them in the
Purchase Agreement.

 

Pursuant to the Purchase Agreement and this
Profit-Sharing Agreement:

 

(1)                  the
Parent and the Buyer shall each be entitled to 50% of the Profits earned by the
Buyer under each of the Emergent Agreement and the Cangene Agreement with
respect to the delivery of anthrax hyperimmune source plasma thereunder from
the Closing Date to the fifth anniversary of the Closing Date;

 

(2)                  the
Buyer shall be entitled to 75% of the Profits, and the Parent shall be entitled
to 25% of the Profits, earned by the Buyer under each of the Emergent Agreement
and the Cangene Agreement with respect to the delivery of anthrax hyperimmune
source plasma thereunder from and after the fifth anniversary of the Closing
Date and through and including the tenth anniversary of the Closing Date;

 

(3)                  the
Parent and the Buyer shall each be entitled to 50% of the Profits earned by the
Parent or an Affiliate thereof for any Parent Future Sales and Excluded
Business Sales from the Closing Date to the fifth anniversary of the Closing
Date; and

 

(4)                  the
Buyer shall be entitled to 25% of the Profits, and the Parent shall be entitled
to 75% of the Profits, earned by the Parent or an Affiliate thereof for any
Parent Future Sales and Excluded Business Sales from and after the fifth
anniversary of the Closing Date and through and including the tenth anniversary
of the Closing Date.

 

For purposes of this Profit-Sharing
Agreement, (i) “Profits” means the total earnings from the Buyer’s or
the Parent’s sale of anthrax hyperimmune source plasma under paragraphs (A)
through (D) above, as applicable, after deducting center overhead expenses and
direct costs (which direct costs shall include, but not be limited to, center
costs and any other costs directly attributable to the production of such
plasma products, but which shall specifically exclude an amount equal to any
deductions for corporate overhead expense), before interest, taxes,
depreciation and amortization, and (ii) “Future Acquired Center” means a
future plasmapheresis center built and opened or acquired by the Buyer or an
Affiliate thereof after the Closing Date, provided, however, that the parties
hereto shall not share any Profits from the sale of anthrax hyperimmune source
plasma collected at such opened or acquired center(s) to the extent that such
plasma is collected pursuant to a pre-existing supply agreement that
the Buyer or an

 

2

 

Affiliate thereof assumed in connection
with a post-Closing plasmapheresis center acquisition.

 

The Buyer shall pay to the Parent its share of the Profits under the
Emergent Agreement and the Cangene Agreement on or before the thirtieth (30th)
day after the Buyer’s receipt of any payment therefor. The Buyer shall furnish
to the Parent with each such payment a calculation, in reasonable detail, of
such Profits. With respect to Profits paid by the Buyer to the Parent during
any fiscal year of the Buyer, on or before the thirtieth (30th) day
after delivery by the Buyer to the Parent of its audited financial statements,
the Parent or the Buyer, as applicable, shall make payment to the other in
order to correct any overpayment/underpayment arising out of the interim
payments made pursuant to the first sentence of this paragraph during such
fiscal year.

 

The Parent shall pay to the Buyer its share of the Profits for the
Parent Future Sales and Excluded Business Sales on or before the thirtieth (30th)
day after the Parent’s receipt of any payment therefor. The Parent shall
furnish to the Buyer with each such payment a calculation, in reasonable
detail, of such Profits. With respect to Profits paid by the Parent to the
Buyer during any fiscal year of the Parent, on or before the thirtieth (30th)
day after delivery by the Parent to the Buyer of its audited financial
statements, the Parent or the Buyer, as applicable, shall make payment to the
other in order to correct any overpayment/underpayment arising out of the
interim payments made pursuant to the first sentence of this paragraph during
such fiscal year.

 

Either the Parent or the Buyer may offset any amounts such party owes
to the other party pursuant to this Profit-Sharing Agreement by any amounts
then owed to them by the other party pursuant to this Profit-Sharing Agreement,
and shall furnish to the other party a calculation, in reasonable detail, of
such offset. Any amounts described in the two preceding paragraphs not paid
within the applicable thirty (30) day period, and that cannot be offset
pursuant to the preceding sentence, shall be subject to interest (calculated on
the basis of the actual days elapsed from the due date described above to the
date of actual payment) at a rate of 1.5% per month or the maximum amount
permitted by law, if less.

 

Furthermore, this Profit-Sharing Agreement shall (i) have a term of 10
years, commencing on the Closing Date, unless earlier amended or terminated, in
whole or in part, by a writing executed by each of the parties hereto, and (ii)
not apply to any profits the Buyer or an Affiliate thereof may earn with
respect to the collection, supply or delivery of anthrax hyperimmune source
plasma from any sources other than those specified in this Profit-Sharing
Agreement.

 

Each Party hereto agrees to furnish to the other Party hereto, upon
request, such documents and other information as such other Party may
reasonably request for the purpose of carrying out the intent and purpose of
this Profit-Sharing Agreement, including, without limitation, (a) the Buyer or
an Affiliate thereof providing to the Parent copies of any Emergent Agreement
or any Cangene Agreement; (b) the Parent or an Affiliate thereof providing to
the Buyer copies of any agreement, including any extension, amendment or
substitution thereof, that the Parent or an Affiliate thereof entered, or may
enter, into between itself and Emergent or an Affiliate thereof or Cangene or
an Affiliate thereof, regarding the supply of anthrax hyperimmune source
plasma; and (c) the Buyer making available to the Parent or its
representatives, or the Parent making available to the Buyer or its
representatives, upon

 

3

 

reasonable prior notice, its books, records and financial data used in
the calculation of Profits hereunder.

 

Should either the Buyer or the Parent have any dispute with regard to
any matter under this Profit-Sharing Agreement, the Buyer and the Parent shall
make a reasonable good faith effort to resolve their differences.  If,
however, the Buyer and the Parent have failed to reach an agreement with respect
to any dispute within thirty (30) days of either party raising such dispute to
the other, then the disputed matter shall be submitted to and reviewed by an arbitrator (the “Arbitrator”)
selected by the American Arbitration Association (the “AAA”). Such
arbitration shall be conducted by the AAA in New York, New York, under the AAA
Commercial Arbitration Rules as in effect from time to time.  The
Arbitrator shall consider only the disputed matter(s).  The Arbitrator
shall act promptly to resolve all disputed matter(s) and its decision with
respect to the disputed matter(s) shall be final and binding upon the Parent
and the Buyer. Upon resolution by the Arbitrator of all disputed matter(s), the
Arbitrator shall cause to be prepared and shall deliver to the Buyer and the
Parent a written decision reflecting the Arbitrator’s resolution of all
disputed matter(s). If the Arbitrator rules against the party that originally
raised the disputed matter(s), such party shall be responsible for the fees and
expenses of the arbitration, unless such Arbitrator decides otherwise.

 

This Profit-Sharing Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without regard to its
principles of conflicts of laws.

 

 

[Remainder
of page intentionally left blank]

 

4

 

If you are in agreement with the foregoing, please acknowledge your
agreement by signing below.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  TALECRIS
  PLASMA RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RANDALL A. JONES

  
	
   

  	
  Name:

  	
   Randall A. Jones

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
  READ AND AGREED AS OF THE DATE FIRST SET FORTH ABOVE:

  
	
   

  	
   

  
	
   

  	
  INTERNATIONAL BIORESOURCES, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  RODNEY L. SAVOY

  
	
   

  	
  Name:

  	
   Rodney L. Savoy

  
	
   

  	
  Title:

  	
  CEOExhibit 10.20

 

STOCKHOLDERS AGREEMENT

 

among

 

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

 

TALECRIS HOLDINGS, LLC

 

INTERNATIONAL BIORESOURCES, L.L.C.

 

AND

 

THE OTHER STOCKHOLDERS REFLECTED

 

ON THE SIGNATURE PAGES HERETO

 

November     , 2006

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE I
  DEFINITIONS

  	
  2

  
	
  Section 1.01

  	
  Certain
  Defined Terms

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE II
  CERTAIN AGREEMENTS

  	
  7

  
	
  Section 2.01

  	
  Redemption
  Rights

  	
  7

  
	
  Section 2.02

  	
  Preemptive
  Rights

  	
  7

  
	
  Section 2.03

  	
  Exchange
  Rights

  	
  9

  
	
  Section 2.04

  	
  Par Value of
  Capital Stock

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE III
  RESTRICTIONS ON TRANSFER

  	
  10

  
	
  Section 3.01

  	
  General
  Restriction

  	
  10

  
	
  Section 3.02

  	
  Legends

  	
  11

  
	
  Section 3.03

  	
  Tag-Along
  Rights

  	
  11

  
	
  Section 3.04

  	
  Drag-Along
  Right

  	
  13

  
	
  Section 3.05

  	
  Right of
  First Offer upon Sales of Shares

  	
  14

  
	
  Section 3.06

  	
  Agreement to
  be Bound

  	
  15

  
	
  Section 3.07

  	
  Compliance
  with Securities Laws

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV
  REGISTRATION RIGHTS

  	
  17

  
	
  Section 4.01

  	
  Demand
  Registration Rights

  	
  17

  
	
  Section 4.02

  	
  Piggyback
  Registration Rights

  	
  19

  
	
  Section 4.03

  	
  Registration
  on Form S-3

  	
  21

  
	
  Section 4.04

  	
  Registration
  Expenses

  	
  21

  
	
  Section 4.05

  	
  Registration
  Procedures

  	
  21

  
	
  Section 4.06

  	
  Preparation;
  Reasonable Investigation

  	
  24

  
	
  Section 4.07

  	
  Indemnification

  	
  25

  
	
  Section 4.08

  	
  Contribution

  	
  26

  
	
  Section 4.09

  	
  Nominees of
  Beneficial Owners

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE V
  INFORMATION RIGHTS

  	
  28

  
	
  Section 5.01

  	
  Requested
  Information

  	
  28

  
	
  Section 5.02

  	
  Confidentiality

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI
  REPRESENTATIONS

  	
  29

  
	
  Section 6.01

  	
  Representations
  of the Company

  	
  29

  
	
  Section 6.02

  	
  Representations
  of Talecris LLC

  	
  30

  
	
  Section 6.03

  	
  Representations
  of IBR

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII
  INDEMNIFICATION

  	
  32

  
	
  Section 7.01

  	
  Indemnification

  	
  32

  
	
  Section 7.02

  	
  Enforcing
  Claims Under Indemnity

  	
  33

  
	
  Section 7.03

  	
  Exclusive
  Remedies

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII
  MISCELLANEOUS

  	
  34

  
	
  Section 8.01

  	
  Consent to
  Assignment

  	
  34

  
	
  Section 8.02

  	
  Entire
  Agreement and Amendments

  	
  35

  
	
  Section 8.03

  	
  Notices

  	
  35

  
	
  Section 8.04

  	
  Non-Waiver

  	
  36

  
	
  Section 8.05

  	
  Governing
  Law, Jurisdiction

  	
  36

  
	
  Section 8.06

  	
  Captions

  	
  37

  
	
  Section 8.07

  	
  Severability

  	
  37

  
	
  Section 8.08

  	
  Set-Off

  	
  37

  
	
  Section 8.09

  	
  Counterparts

  	
  37

  
	
  Section 8.10

  	
  Recapitalizations,
  Exchanges, Etc. Affecting Common Stock

  	
  37

  

 

i

 

	
  SCHEDULES

  	
   

  
	
   

  	
   

  
	
  SCHEDULE I

  	
  Capitalization
  of the Company

  
	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  
	
  EXHIBIT A

  	
  Certificate
  of Incorporation

  
	
  EXHIBIT B

  	
  Certificate
  of Designations for Series A Senior Convertible Preferred Stock

  
	
  EXHIBIT C

  	
  Certificate
  of Designations for Series B Senior Convertible Preferred Stock

  
	
  EXHIBIT D

  	
  Certificate
  of Designations for Junior Preferred Stock

  

 

ii

 

STOCKHOLDERS AGREEMENT

 

THIS
STOCKHOLDERS AGREEMENT (this “Agreement”), dated                   
    , 2006 (the “Effective Date”), among TALECRIS
BIOTHERAPEUTICS HOLDINGS CORP., a Delaware corporation (the “Company”),
TALECRIS HOLDINGS, LLC, a Delaware limited liability company (“Talecris LLC”),
INTERNATIONAL BIORESOURCES, L.L.C., a Louisiana limited liability company (“IBR”),
and the members of IBR listed on any counterpart signature page hereto executed
in accordance with Section 3.01(a)(iv) hereof (collectively with IBR, the “IBR
Parties”). Talecris LLC and the IBR Parties are collectively referred to as the
“Stockholders”. Capitalized terms not defined herein have the meanings assigned
to them in the Purchase Agreement (as defined below).

 

RECITALS

 

A.            As of the Effective
Date, the authorized capital stock of the Company consists of:

 

(i)            100,000,000
shares of Common Stock, par value $0.01 per share (the “Common Stock”), of the
Company having the rights and preferences set forth in the Company’s
Certificate of Incorporation;

 

(ii)           5,000,000
shares of Series A Senior Convertible Preferred Stock, par value $0.01 per
share (the “Series A Senior Convertible Preferred Stock”), of the Company
having the rights and preferences set forth in the Company’s Certificate of Designations
for the Series A Senior Convertible Preferred Stock (the “Series A Senior
Convertible Preferred Stock Designations”);

 

(iii)          5,000,000
shares of Series B Senior Convertible Preferred Stock, par value $0.01 per
share (the “Series B Senior Convertible Preferred Stock”), of the Company
having the rights and preferences set forth in the Company’s Certificate of
Designations for the Series B Senior Convertible Preferred Stock (the “Series B
Senior Convertible Preferred Stock Designations”); and

 

(iv)          10
shares of Junior Preferred Stock, par value $0.01 per share (the “Junior
Preferred Stock”), of the Company having the rights and preferences set forth
in the Company’s Certificate of Designations for the Junior Preferred Stock
(the “Junior Preferred Stock Designations”).

 

B.            Pursuant to that certain Asset Purchase Agreement, made and
entered into on October    , 2006, by and among IBR-BYR L.L.C.,
a Louisiana limited liability company (“IBR-BYR”), IBR, IBR Plasma Centers,
L.L.C., a Louisiana limited liability company (“IBR PC”), the Company, and
Talecris Plasma Resources, Inc., a Delaware corporation (as may be
amended from time to time, the “Purchase
Agreement”), as of the Effective Date, the IBR Parties may receive
shares of Common Stock pursuant to Section 2(c)(ii) and Section 2(c)(iii) of
the Purchase Agreement. Schedule I sets forth the capitalization of the Company
as of the Effective Date.

 

C.            As a condition to the
consummation of the transactions contemplated by the Purchase Agreement and in
order to govern certain of their rights, duties and obligations and the
relations among themselves following the consummation of the transactions
contemplated thereby, the parties hereto desire to enter into this Agreement.

 

 

In
consideration of the premises and the mutual agreements and covenants
hereinafter set forth, the parties hereto, intending to be legally bound,
hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.01           Certain Defined
Terms. As used in this Agreement, the following terms shall have the
following meanings:

 

“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 the IBR Parties or any of their Affiliates shall be
considered to be an Affiliate of the Company or Talecris LLC or any of their
respective Subsidiaries.

 

“Agreement”
has the meaning given such term in the Preamble.

 

“Ampersand”
means Ampersand 2001 Limited Partnership.

 

“Approved Sale”
means any transaction or series of related transactions, approved by the Board
of Directors of the Company, pursuant to which a Third Party or group of Third
Parties acting together acquires (i) Equity Interests of the Company
constituting a majority of the issued and outstanding Voting Stock of the
Company (whether by merger, consolidation, sale or transfer of the Company’s
Equity Interests, or otherwise) or (ii) all or substantially all of the
Company’s assets.

 

 “Beneficial Owner” has the meaning given such
term in Rules 13d-3 and 13d-5 under the Exchange Act.

 

“Business Day”
means any day that is not a Saturday, a Sunday or a day on which commercial
banks in New York City are required or authorized to be closed.

 

“Cerberus”
means Cerberus Capital Management, L.P.

 

“Change of
Control” means any of the following: (i) the sale, assignment, conveyance,
transfer, lease or other disposition of all or substantially all of the assets
of Parent and its Subsidiaries, taken as a whole, whether in one transaction or
a series of related transactions; (ii) the acquisition of Parent by another
Person by means of merger or consolidation resulting in the exchange of all or
substantially all of the outstanding securities of Parent for securities or
consideration issued, or caused to be issued, by the acquiring Person or an
Affiliate thereof other than a merger with or into a wholly owned Subsidiary or
(iii) the consummation by Parent of a transaction or series of related
transactions, including the issuance or sale of capital securities, if
immediately after the consummation of such transaction (or, in the case of a
series of transactions, the last of such transactions) any Person (other than
Cerberus, Ampersand and their respective Affiliates) shall acquire, as a result
thereof, more than 50% of the Voting Stock of Parent on a fully diluted basis.

 

2

 

“Commission”
means the United States Securities and Exchange Commission, and any successor
commission or agency having similar powers.

 

“Common Share”
means any share of Common Stock.

 

“Common Stock”
has the meaning set forth in the Recitals.

 

“Common Stock
Equivalents” means, without duplication with any other Common Stock or Common
Stock Equivalents, any shares of any class or series of any securities or any
instruments (including debt securities) of the Company directly or indirectly
convertible into or exercisable or exchangeable for (or which are convertible
into or exercisable or exchangeable for another security or instrument which is
directly or indirectly convertible into or exercisable or exchangeable for)
Common Stock, whether at the time of issuance or upon the passage of time or
the occurrence of future events.

 

“Company” has
the meaning set forth in the Preamble.

 

“Confidential
Information” has the meaning set forth in Section 5.02(a).

 

“Delay Notice”
has the meaning set forth in Section 4.01(f)(ii).

 

“Demand
Exercise Notice” has the meaning set forth in Section 4.01(a).

 

“Demand Registration”
has the meaning set forth in Section 4.01(a).

 

“Demand
Registration Maximum Offering Size” has the meaning set forth in
Section 4.01(g).

 

“Demand
Registration Request” has the meaning set forth in Section 4.01(a).

 

“Demanding
Party” has the meaning set forth in Section 4.01(a).

 

“Disadvantageous
Condition” means the existence of any acquisition, disposition or other
material transaction involving the Company or any of its Subsidiaries or any
material financing activity, or the unavailability of any required financial
statements, or the possession by the Company of material information which, in
the judgment of the Board of Directors of the Company, would not be in the best
interests of the Company or any of its Subsidiaries to disclose in a Registration
Statement.

 

“Disclosing
Party” has the meaning set forth in Section 5.02(c).

 

“Drag-Along
Notice” has the meaning set forth in Section 3.04(b).

 

“Drag-Along
Sale” has the meaning set forth in Section 3.04(a).

 

“Effective
Date” has the meaning set forth in the Preamble.

 

“Equity
Interests” means any shares of any class or series of any securities or
instruments (including debt securities) directly or indirectly 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 or instrument which is, in turn, directly or
indirectly convertible into or exercisable or exchangeable for shares of any
class or series of capital stock of such Person), whether at the time of
issuance or upon the passage of time or the occurrence of future events,
whether now authorized or not.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder.

 

3

 

“Exchange
Notice” has the meaning set forth in Section 2.03(c).

 

“Exchange
Share” means any share of Voting Stock of Parent.

 

“Fully Diluted
Common Shares” means, at any time of determination, then outstanding shares of
Common Stock plus, without duplication, all shares of Common Stock issuable,
whether at such time or upon the passage of time or the occurrence of future
events, upon the conversion, exercise or exchange of all then outstanding Common
Stock Equivalents.

 

“IBR” has the
meaning set forth in the Preamble.

 

“IBR Parties”
has the meaning set forth in the Preamble.

 

“Initial
Shares” has the meaning set forth in Section 4.05(e).

 

“IPO” 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.

 

“Joint Notice”
has the meaning set forth in Section 3.05(b).

 

“Junior
Preferred Stock” has the meaning set forth in the Recitals.

 

“Junior
Preferred Stock Designations” has the meaning set forth in the Recitals.

 

“Junior
Secured Convertible Notes” means the Junior Secured Convertible Notes due 2013
of the Company.

 

“Lien” means,
with respect to any property or other asset of any Person (or any revenues,
income or profits of that Person therefrom) (in each case whether the same is
consensual or nonconsensual or arises by contract, operation of law, legal
process or otherwise),

 

(i)            any mortgage, lien,
security interest, pledge, assignment, hypothecation, title retention,
preferential right, counterclaim, attachment, actual, planned or threatened
expropriation, seizure, embargo, levy or other charge or encumbrance of any
kind thereupon or in respect thereof or

 

(ii)           any other arrangement
under which the same is transferred, sequestered or otherwise identified with
the intention of subjecting the same to, or making the same available for, the
payment or performance of any liability in priority to the payment of the
ordinary, unsecured creditors of that Person. For purposes of this Agreement, a
Person will be deemed to own subject to a Lien any asset that it has acquired
or holds subject to the interest of a vendor or lessor under any conditional
sale agreement, capital lease, synthetic lease or other title retention
agreement relating to that asset.

 

“NASD” means
the National Association of Securities Dealers, Inc.

 

“New Issue
Securities” has the meaning set forth in Section 2.02(a)(i).

 

“Notice of
Acceptance” has the meaning set forth in Section 2.02(b).

 

“Notice of
Interest” has the meaning set forth in Section 3.03(b).

 

“Notice Period”
has the meaning set forth in Section 3.03(b).

 

“Offer Period”
has the meaning set forth in Section 3.05(b).

 

“Offer Terms”
has the meaning set forth in Section 3.05(a).

 

4

 

“Offered
Shares” has the meaning set forth in Section 3.05(a).

 

“Overallotment
Option Shares” has the meaning set forth in Section 4.05(e).

 

“Parent” means
Talecris LLC, any successor to Talecris LLC or any direct or indirect upstream
parent entity holding a controlling interest in the Equity Interests of
Talecris LLC other than Cerberus, Ampersand and their related funds.

 

“Permitted
Transferee” shall mean, with respect to any IBR Party, (i) the Company or
Talecris LLC; (ii) any other IBR Party, (iii) any trust for the direct or
indirect benefit of such IBR Party or the immediate family (any relationship by
blood, marriage or adoption, not more remote than first cousin) of such IBR
Party, if the transfer does not involve a disposition for value; or (iv) any of
the immediate family (any relationship by blood, marriage or adoption, not more
remote than first cousin) in connection with a transfer by bona fide gift, will
or intestate succession.

 

“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.

 

“Piggyback
Registration Maximum Offering Size” has the meaning set forth in
Section 4.02(b).

 

“Preemptive
Offeree” has the meaning set forth in Section 2.02(a)(i).

 

“Preemptive
Rights Notice” has the meaning set forth in Section 2.02(a)(ii).

 

“Preemptive
Share” has the meaning set forth in Section 2.02(a)(ii).

 

“Pro Rata
Share” has the meaning set forth in Section 3.03(b).

 

“Prospectus”
means the prospectus included in a Registration Statement, including any
preliminary prospectus or summary prospectus, and any such prospectus or
preliminary or summary prospectus as amended or supplemented, and in each case
including all material incorporated by reference therein.

 

“Public
Offering” means an underwritten public offering of common stock of a Person
that is a corporation (or Equity Interests of a Person that is not a
corporation comparable to common stock) pursuant to an effective Registration
Statement under the Securities Act.

 

“Purchase
Agreement” has the meaning set forth in the Recitals.

 

“Registrable
Securities” means the Shares held by the parties to this Agreement or by any
other Persons to whom incidental registration rights may be granted after the
date hereof. As to any particular Registrable Securities that have been issued,
such securities shall cease to be Registrable Securities when (i) a
Registration Statement with respect to the sale of such securities shall have
become effective under the Securities Act and such securities shall have been
disposed of under such Registration Statement; (ii) they shall have been
distributed to the public pursuant to Rule 144; (iii) they shall have been
otherwise transferred or disposed of, and new certificates therefor not bearing
a legend to the effect set forth in the first paragraph of the legend
required by Section 3.02 restricting further transfer shall have been
delivered by the Company, and subsequent transfer or disposition of them shall
not require their registration or

 

5

 

qualification
under the Securities Act or any state securities laws; or (iv) they shall
have ceased to be outstanding.

 

“Registration
Expenses” has the meaning set forth in Section 4.04.

 

“Registration
Statement” means a registration statement filed by an issuer with the
Commission and all amendments and supplements to any such registration
statement, including any statutory prospectus, preliminary prospectus or issuer
free writing prospectus or any amendment or supplement, in each case including
the Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.

 

“Representatives”
has the meaning set forth in Section 5.02(a).

 

“Roll-Up” has
the meaning set forth in Section 2.03(b).

 

“Rule 144” means
Rule 144 (or any successor provision) under the Securities Act.

 

“Sale” means
any sale of legal and beneficial ownership of Shares for value. The terms “Sell”
and “Sold” have corresponding meanings.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and
regulations thereunder.

 

“Selling Party”
has the meaning set forth in Section 3.05(a).

 

“Selling Party’s
Notice” has the meaning set forth in Section 3.05(a).

 

“Senior
Convertible Preferred Stock” means the Series A Senior Convertible Preferred
Stock and Series B Senior Convertible Preferred Stock collectively.

 

 “Series A Senior Convertible Preferred Stock
Designations” has the meaning set forth in the Recitals.

 

“Series B
Senior Convertible Preferred Stock Designations” has the meaning set forth in
the Recitals.

 

“Share” means
any Common Share or any share of Senior Convertible Preferred Stock.

 

“Stockholder”
has the meaning set forth in the Preamble.

 

“Subsidiary”
of any Person means (i) a corporation more than 50% of the outstanding
Voting Stock of which is owned, directly or indirectly, by such Person or by
one or more other Subsidiaries of such Person or by such Person and one or more
Subsidiaries thereof or (ii) any other Person (other than a corporation)
in which such Person or one or more other Subsidiaries of such Person or such
Person and one or more other Subsidiaries thereof, directly or indirectly, has
at least majority ownership and the power to direct the management or policies
thereof.

 

“Tag-Along
Offer Notice” has the meaning set forth in Section 3.03(a).

 

“Tag-Along
Offer Price” has the meaning set forth in Section 3.03(a).

 

“Tag-Along
Right” has the meaning set forth in Section 3.03(a).

 

“Tag-Along
Shares” has the meaning set forth in Section 3.03(a).

 

“Tag-Along
Transfer” has the meaning set forth in Section 3.03(a).

 

“Talecris Inc.”
means Talecris Biotherapeutics, Inc., a Delaware corporation.

 

6

 

“Talecris LLC”
has the meaning set forth in the Preamble.

 

“Third Party”
means, with respect to any Stockholder, any Person other than such Stockholder,
any Affiliate of such Stockholder, any of the immediate family (any
relationship by blood, marriage or adoption, not more remote than first cousin)
of such Stockholder or another Stockholder.

 

“Transfer”
means any transfer, Sale, assignment, distribution, exchange, charge, pledge,
gift, hypothecation, conveyance, encumbrance, security interest or other
disposition of Shares or of a participation or other rights therein (including
any contract therefor), whether direct or indirect or through any one or more
intermediaries, voluntary or involuntary, by transfer by reorganization,
merger, sale of substantially all of the assets or by operation of law, or for
value or otherwise, or the entering into of a transaction or other arrangement
by a Stockholder which has, or is intended to have, the effect of transferring
any economic benefit and/or risks of the ownership of the Shares, or the
entering into of any voting trust or other arrangement (other than as
contemplated herein) with respect to voting rights of such Shares, or the
transfer of an interest in any Person holding the Shares (directly or
indirectly through any other Person in which such first-named Person holds an
interest) or having other economic interest, direct or indirect, in the Shares.
Any indirect Transfer shall include the transfer of any direct or indirect
economic or beneficial interest in the Shares that would result in the
transferee having the opportunity, directly or indirectly, to profit or share
in any profit derived from a transaction in the Shares.

 

“Valuation
Firm” has the meaning set forth in Section 3.05(g).

 

“Voting Stock”
of any Person means capital stock of such Person which ordinarily has voting power
for the election of directors (or persons performing similar functions) of such
Person.

 

ARTICLE II

CERTAIN AGREEMENTS

 

Section 2.01                                Redemption
Rights.

 

(a)                                  The
Company may redeem or purchase any shares of capital stock of the Company,
including, but not limited to, (i) redeem or repurchase any Shares from
officers, former officers, employees, former employees, directors or former
directors of the Company or its Affiliates upon the death, disability or
termination of the employment of such officers, former officers, employees or
former employees or termination of the term of such director or former director
and (ii) redeem or repurchase Shares deemed to occur upon (A) the exercise
of stock options if such Shares represent a portion of the exercise price
thereof and (B) the withholding of a portion of the Shares granted or awarded
to an employee to pay taxes associated therewith.

 

Section 2.02                                Preemptive
Rights.

 

(a)                                  Subject
to the exceptions set forth in Section 2.02(d), the Company shall:

 

(i)                                     not
issue, sell or exchange, agree or obligate itself to issue, sell or exchange,
or reserve or set aside for issuance, sale or exchange any Equity Interests of
the Company unless the Company shall have first offered to sell such securities
(the “New Issue Securities”) to each Stockholder (in each case, a “Preemptive
Offeree”) in accordance with this Section 2.02; and

 

7

 

(ii)           offer to sell each
Preemptive Offeree all or any portion of its Preemptive Share of any proposed
issuance of New Issue Securities at the same price and on the same terms at
which the Company proposes to sell such New Issue Securities, which shall have
been specified by the Company in a written offer delivered to the Preemptive
Offerees setting forth all of the terms and conditions of the offering of the
New Issue Securities (the “Preemptive Right Notice”), which offer by its terms
shall remain open and irrevocable for a period of 15 Business Days from receipt
of the Preemptive Right Notice. The offer of the Company to sell the New Issue
Securities shall expire after such 15-Business Day period. “Preemptive Share”
shall equal (i) the number of shares of New Issue Securities multiplied by
(ii) a fraction (A) the numerator of which is equal to the number of Fully
Diluted Common Shares that would be owned by such Stockholder assuming the
conversion, exercise or exchange of all Equity Interests of the Company owned
by such Stockholder and (B) the denominator of which is equal to the Fully
Diluted Common Shares.

 

(b)           Within
15 Business Days after receipt of the Preemptive Right Notice, the Preemptive
Offeree may give notice to the Company of its intent to accept (a “Notice of
Acceptance”) the Company’s offer to purchase all or any portion of its
Preemptive Share of New Issue Securities, which Notice of Acceptance shall
constitute an irrevocable acceptance of such offer. If the Company does not
receive a Notice of Acceptance within such 15-Business Day period with respect
to any New Issue Securities, such Preemptive Offeree shall be deemed to have
waived its opportunity to purchase such New Issue Securities, and the Company
shall be free to issue and sell such New Issue Securities (or other securities
convertible into or exercisable or exchangeable for such New Issue Securities)
to any Person on terms and conditions which, taken as a whole, are no less
favorable to the Company, at any time within 180 days after the expiration of
such 15-Business Day period. Any New Issue Securities not sold within 180 days
after the expiration of such 15-Business Day period shall continue to be
subject to the requirements of this Section 2.02.

 

(c)           Upon
the closing of any such purchase of New Issue Securities, which shall include
full payment to the Company of the purchase price therefor, each Preemptive
Offeree shall purchase from the Company, and the Company shall sell to such
Preemptive Offeree, the number of New Issue Securities specified in the
Preemptive Offeree’s Notice of Acceptance, upon the terms and conditions
specified in the Preemptive Right Notice.

 

(d)           The
rights of the Preemptive Offerees under Section 2.02(a) shall not
apply to any of the following New Issue Securities:

 

(i)            options or other
Common Stock Equivalents to purchase shares of Common Stock issued to the
Company’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 Company’s
Board of Directors;

 

(ii)           New Issue Securities
issued in connection with an IPO;

 

(iii)          New Issue Securities
issued to a qualified institutional buyer in connection with an offering in
accordance with Rule 144A under the Securities Act or any successor rule;

 

8

 

(iv)          New Issue Securities
issued pursuant to the exercise, conversion or exchange of any then outstanding
convertible or exchangeable securities, rights, options or warrants, including
without limitation, the Senior Convertible Preferred Stock issued to Talecris
LLC and the Series A Senior Convertible Preferred Stock issuable to Talecris
LLC under the Junior Secured Convertible Notes;

 

(v)           New Issue Securities
issued to lenders or purchasers of debt securities of the Company or Parent or
their Subsidiaries in connection with debt incurred to such lenders or
purchasers;

 

(vi)          New Issue Securities
issued in consideration of an acquisition of the equity or assets of another
Person, whether by sale, consolidation, merger or other similar transaction;
and

 

(vii)         New Issue Securities
issued as dividends or distributions generally to holders of Shares (including
holders of Common Stock), or upon any subdivision or combination or similar
recapitalization of Shares.

 

(e)           This
Section 2.02 shall terminate immediately prior to the consummation of an
IPO.

 

Section 2.03                                Exchange
Rights.

 

(a)           Immediately
prior to the consummation of an IPO of Parent or Change of Control of Parent,
the IBR Parties, on the one hand, and Talecris LLC, on the other hand, will
each be entitled to cause the Common Shares held by the IBR Parties to be
exchanged for Equity Interests in Parent as comparable to the Common Stock as
practicable (and in any event having a value no less, and terms and rights no
less favorable to the IBR Parties, than those of their Common Shares (which
terms and rights include those set forth in Section 2(h) and 2(i) of the
Purchase Agreement)).

 

(b)           In
the event Parent elects to cause the Company to become a wholly owned
subsidiary of Parent (a “Roll-Up”), Talecris LLC will be entitled to cause the
Common Shares to be exchanged for Equity Interests in Parent as comparable to
the Common Stock as practicable (and in any event having a value no less, and
terms and rights no less favorable to the IBR Parties, than those of their
Common Shares (which terms and rights include those set forth in Section 2(h)
and 2(i) of the Purchase Agreement)).

 

(c)           As
soon as practicable and no fewer than 30 days prior to the consummation of an
IPO or Change of Control of Parent or a Roll-Up, Talecris LLC will deliver to
the IBR Parties written notice of such proposed IPO, Change of Control or
Roll-Up (“Exchange Notice”), specifying the material terms thereof and
information concerning the basis for the determination that the Equity
Interests received by the IBR Parties in such exchange are as comparable as
practicable to the Common Stock (as further described in Section 2(b)) and
whether Talecris LLC is exercising its right to require the Shares held by the
IBR Parties to be exchanged for Equity Interests in Parent in accordance with
the requirements of Section 2.03(a) or 2.03(b), as applicable.

 

(d)           In
connection with any exchange pursuant to this Section 2.03, Parent shall, upon
written request of any IBR Party, furnish to such IBR Party such information
and documentation concerning the proposed terms and rights with respect to such
IBR Party exchange as such IBR Party may reasonably request, including, without
limitation, information

 

9

 

concerning the basis for the determination that the
Equity Interests received by the IBR Parties in such exchange are as comparable
as practicable to the Common Stock (as further described in Section 2(b)),
including, without limitation, opinions prepared by accountants, investment
bankers or other advisors in connection with such exchange.

 

(e)           Consistent
with Section 8.10, upon the consummation of any exchange pursuant to
Section 2.03(a) or Section 2.03(b):

 

(i)            the provisions of this
Agreement shall be adjusted such that references in this Agreement to Shares
shall be deemed to be references to the Exchange Shares references in this
Agreement to the Company shall be deemed to be references to Parent; and

 

(ii)           References in the Purchase
Agreement and Escrow Agreement (as defined in the Purchase Agreement) to “Holdings
Common Stock” shall be deemed to be references to the Equity Interests of
Parent issued is such exchange.

 

Section 2.04                                Par
Value of Capital Stock.

 

All capital
stock of the Company issued on or before the date of this Agreement has a par
value of $0.01 per share. The Company, at the time it issues any shares of
capital stock, shall set the par value at $0.01 per share and declare an amount
equal to the aggregate par value thereof as stated capital and shall not
thereafter increase the capital attributed to such shares.

 

ARTICLE III

RESTRICTIONS ON TRANSFER

 

Section 3.01                                General
Restriction.

 

(a)           No
IBR Party, without the prior written consent of the Company, which may be given
or withheld in its absolute discretion, may Transfer or permit the Transfer of
any Common Shares except as specifically provided below:

 

(i)            At any time, an IBR
Party may Transfer any Common Shares to Permitted Transferees without complying
with Sections 3.03 and 3.05 but subject to compliance with
Section 3.06; provided, however, that no IBR Party may Transfer any Common
Shares to any Permitted Transferee if the purpose of such Transfer is to
dispose of such Common Shares; provided, further, that if any such Permitted
Transferee, subsequent to the time of Transfer, ceases to be a “Permitted
Transferee” as defined herein, such event shall be deemed a Transfer of Common
Shares subject to the provisions of Section 3.01(a), except if prior to
such Permitted Transferee ceasing to be such, the Common Shares are transferred
to a Permitted Transferee.

 

(ii)           At any time, an IBR
Party may Transfer any Common Shares as may be permitted by Section 3.03
or Section 3.05 or required by Section 2.03 or Section 3.04.

 

(iii)          Beginning 180 days after
the consummation of an IPO (or such shorter period after the consummation of an
IPO as may be permitted by the managing underwriters of the IPO), an IBR Party
may Transfer any Common Shares without restriction, except as required by law;
provided, however, that no

 

10

 

IBR Party shall be
subject to any terms of any lock-up agreement, including the lock-up period,
that are less favorable to such IBR Party than the terms of the lock-up
agreement, including the lock-up period, applicable to (A) in the case of an
IPO of the Company, Talecris LLC and the executive officers and directors of
the Company; or (B) in the case of an IPO of the Parent, Cerberus, Ampersand
and the executive officers and directors (or their equivalents) of the Parent.

 

(iv)          If at any time IBR
determines to distribute Common Shares to its members, IBR shall notify Parent
of such distribution in writing and shall identify its members entitled to
receive such distribution. Each such member shall promptly execute a
counterpart signature page to this Agreement in the form attached hereto,
whereupon such IBR Party shall be deemed, as the date of execution of such
counterpart signature page, to have made the representations set forth in
Section 6.03 (severally and solely as to such member), to be a Permitted
Transferee for purposes of this Agreement, and to be an IBR Party for purposes
of this Agreement, and each such member shall succeed to the rights and
obligations of IBR hereunder.

 

Section 3.02                                Legends.

 

The Company
shall affix to each certificate evidencing Shares a legend in substantially the
following form:

 

“THE SECURITIES EVIDENCED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. NO
REGISTRATION OF TRANSFER OF SUCH SECURITIES WILL BE MADE ON THE BOOKS OF THE
ISSUER UNLESS SUCH TRANSFER IS MADE IN CONNECTION WITH AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION OR EXCLUSION
FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT.

 

THE SECURITIES EVIDENCED BY THIS CERTIFICATE
ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AS SET FORTH IN A STOCKHOLDERS
AGREEMENT, DATED AS OF NOVEMBER    , 2006, AS IT MAY THEREAFTER
BE AMENDED, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL CORPORATE OFFICES OF
THE ISSUER (THE “STOCKHOLDERS AGREEMENT”). NO REGISTRATION OF TRANSFER OF SUCH
SECURITIES WILL BE MADE ON THE BOOKS OF THE ISSUER UNLESS AND UNTIL SUCH
RESTRICTIONS SHALL HAVE BEEN COMPLIED WITH.

 

THE HOLDER OF THE SECURITIES EVIDENCED BY
THIS CERTIFICATE IS ENTITLED TO CERTAIN RIGHTS AND SUBJECT TO CERTAIN
OBLIGATIONS AS SET FORTH IN THE AFOREMENTIONED STOCKHOLDERS AGREEMENT.”

 

Section 3.03                                Tag-Along
Rights.

 

(a)           If
at any time Talecris LLC proposes to Sell (a “Tag-Along Transfer”), in a single
transaction or series of transactions, fifty-one percent (51%) or more of its
Shares held

 

11

 

by it (the “Tag-Along Shares”) to a Third Party, each
IBR Party shall have the opportunity to Sell its Pro Rata Share of the
Tag-Along Shares (“Tag-Along Right”). Talecris LLC shall provide written notice
(the “Tag-Along Offer Notice”) of such Tag-Along Transfer not later than 30
days prior to the consummation of the Tag-Along Transfer to the IBR Parties
disclosing (i) the identity of the proposed purchaser, (ii) the
number of Tag-Along Shares, (iii) the price at which the Tag-Along Shares
are proposed to be Sold (the “Tag-Along Offer Price”), and (iv) all other
material terms and conditions of the Tag-Along Transfer. Talecris LLC agrees to
use commercially reasonable efforts to obtain the agreement of the prospective
purchaser to the participation of the IBR Parties in the contemplated Tag-Along
Transfer, and agrees not to Transfer any shares to a prospective purchaser that
declines to allow the participation of the IBR Parties in accordance with this
Section 3.03.

 

(b)           If
any IBR Party desires to exercise the Tag-Along Right, it shall, prior to the
expiration of 20 days after the Tag-Along Offer Notice is provided (the “Notice
Period”), provide Talecris LLC with a written notice specifying the number of
Common Shares which it has an interest in Selling pursuant to the Tag-Along
Transfer (a “Notice of Interest”). The IBR Party exercising the Tag-Along Right
may specify in the Notice of Interest a number of Common Shares that is greater
than its Pro Rata Share (as defined below); provided, however, the Company, in
its absolute discretion, may limit the number of Common Shares to be Sold by any
IBR Party pursuant to this Section 3.03 to its Pro Rata Share. Delivery of
a Notice of Interest shall constitute an irrevocable election by such IBR Party
to Sell the number of Common Shares specified in such Notice of Interest
pursuant to the terms of the Tag-Along Transfer at a price equal to the
Tag-Along Offer Price. If any IBR Party delivers a Notice of Interest, it
agrees that it will deliver to the closing of the Tag-Along Transfer
certificates evidencing the Common Shares to be Sold by it in the Tag-Along
Transfer duly endorsed in blank or accompanied by written instruments of
transfer in form reasonably satisfactory to Talecris LLC executed by such IBR
Party and will execute such other documents containing such terms and
conditions (including customary representations and warranties that relate
specifically to its Common Shares being Sold) that Talecris LLC may reasonably
request in order to consummate the Tag-Along Transfer at the time specified by
Talecris LLC. In the event that any IBR Party fails to deliver any of the
foregoing on or before the closing, then such IBR Party will be deemed to have
irrevocably waived all of its rights under this Section 3.03 with respect
to any future Tag-Along Transfers. The “Pro Rata Share” which an IBR Party shall
be entitled to Sell shall be a number of Common Shares equal to the product
obtained by multiplying (x) the total number of Common Shares owned by
such IBR Party by (y) a fraction, the numerator of which shall be the number of
Fully Diluted Common Shares into which Shares proposed to be Sold by Talecris
LLC are convertible, exercisable or exchangeable and the denominator shall be
the total number of Shares owned by Talecris LLC, assuming the conversion,
exercise or exchange of all Equity Interests of the Company owned by such
Stockholder; provided, however, that if the proposed Third Party purchaser in
the Tag-Along Transfer is not willing to purchase the total of the Tag-Along
Shares to be Sold by Talecris LLC and the Pro Rata Share of each IBR Party at the
same per unit Tag-Along Offer Price and on the same terms and conditions
contained in the offer for the Tag-Along Transfer, then the number of the
Tag-Along Shares to be Sold by Talecris LLC and the Pro Rata Share of each IBR
Party shall be cut back pro rata (i.e., the number of Shares that each of
Talecris LLC and the IBR Parties may Sell shall bear the same percentage to
total number of Shares held by each of them, assuming the conversion, exercise
or exchange of all Equity Interests of the Company owned by such Stockholder).

 

12

 

(c)           On
the date of the consummation of the Tag-Along Transfer, Talecris LLC shall
remit or cause to be remitted to the IBR Parties participating in the Tag-Along
Transfer the total sales price of the Common Shares sold by such IBR Parties,
as applicable, less a pro rata portion of the documented and reasonable out of
pocket expenses (including, without limitation, reasonable legal fees and
expenses) incurred by Talecris LLC in connection with such Tag-Along Transfer.

 

(d)           If,
at the end of a Notice Period, any of the IBR Parties shall not have exercised
its Tag-Along Right, each such IBR Party will be deemed to have waived all of
its rights under this Section 3.03 with respect to the particular
Tag-Along Transfer described in the applicable Tag-Along Offer Notice.

 

(e)           Section 3.03(a) shall
not apply to any Sale by Talecris LLC (i) as part of a Public Offering by
the Company in which the IBR Parties have been offered the right to participate
on a pro rata basis, (ii) pursuant to an Approved Sale in which the IBR
Parties have been offered the right to participate on a pro rata basis,
(iii) to its Affiliates provided that any such Affiliate agrees in writing
to be bound by the provisions of this Agreement affecting the Equity Interests
so transferred or (iv) of less than 10% of the Shares beneficially owned
by Talecris LLC as of the date hereof.

 

(f)            This
Section 3.03 shall terminate immediately prior to the consummation of an
IPO.

 

Section 3.04                                Drag-Along
Right.

 

(a)           In
the event that Talecris LLC proposes to Sell (the “Drag-Along Sale”) all or any
portion of the Shares held by it to a Third Party in a single transaction or
series of related transactions that would result in such Third Party and its
Affiliates becoming the beneficial owner, directly or indirectly, of 50% or
more of the Fully Diluted Common Shares of the Company, Talecris LLC may
require each IBR Party to participate in such Drag-Along Sale and Sell the same
percentage of its Common Shares, as the Fully Diluted Common Shares that would
be Sold by Talecris LLC, assuming the conversion, exercise or exchange of all
Equity Interests of the Company, represent to the total number of Fully Diluted
Common Shares that would be held by Talecris LLC, assuming the conversion,
exercise or exchange of all Equity Interests of the Company, on the same terms
and conditions and at the same time or times as applicable to Talecris LLC.

 

(b)           Talecris
LLC shall, promptly upon determining the terms of the Drag-Along Sale, deliver
to IBR Parties written notice (the “Drag-Along Notice”) specifying the material
terms of the Drag-Along Sale, including the identity of the purchaser to which
the Drag-Along Sale is proposed to be made, the terms per Fully Diluted Common
Share of such Sale and the costs expected to be incurred by Talecris LLC in
connection with such Sale. In connection with any such Sale, each IBR Party
will agree to make or agree to any customary representations, covenants,
indemnities and agreements as Talecris LLC so long as they are made severally
and not jointly and the liabilities thereunder are borne on a pro rata basis
based on the numbers of Fully Diluted Common Shares into which Shares sold by
each Stockholder are convertible, exercisable or exchangeable.

 

(c)           Each
IBR Party agrees that it will deliver at the closing of the Drag-Along Sale
certificates evidencing the Common Shares to be sold by such IBR Party in the
Drag-Along

 

13

 

Sale duly endorsed in blank or accompanied by written
instruments of transfer in form reasonably satisfactory to Talecris LLC
executed by such IBR Party, and each IBR Party shall execute such other
documents of transfer that Talecris LLC may reasonably request in order to
consummate the Drag-Along Sale at the time specified by Talecris LLC.

 

(d)           On
the date of the consummation of the Drag-Along Sale, Talecris LLC shall remit
or cause to be remitted to each IBR Party its portion of the consideration for
the Common Shares sold pursuant thereto less its proportionate share of the
reasonable and documented costs (including, without limitation, reasonable
legal fees and expenses) incurred in connection with such Drag-Along Sale,
including costs incurred by the IBR Parties, to the extent not paid or
reimbursed by the Company or the Third Party.

 

(e)           Anything
herein to the contrary notwithstanding, Talecris LLC shall have no obligation
to any IBR Party to Sell any Shares pursuant to this Section 3.04 as a
result of any decision by Talecris LLC not to accept or consummate any
Drag-Along Sale (it being understood that any and all such decisions shall be
made by Talecris LLC in its sole discretion). The IBR Parties shall not be
entitled to make any Sale of Common Shares directly to any Third Party pursuant
to a Drag-Along Sale (it being understood that all such Sales shall be made
only on the terms and pursuant to the procedures set forth in this
Section 3.04).

 

(f)            This
Section 3.04 shall terminate immediately prior to the consummation of an
IPO.

 

Section 3.05                                Right
of First Offer upon Sales of Shares.

 

(a)           If
a Sale of all or any part of an IBR Party’s Common Shares is permitted pursuant
to Section 3.01 hereof (other than as permitted under Section 3.01(a)(i) or
Section 3.01(a)(ii) or as part of a Public Offering by the Company), then such
IBR Party (the “Selling Party”) shall comply with the provisions of this
Section 3.05. A Selling Party shall give written notice to the Company and
Talecris LLC stating the Selling Party’s bona fide intention to make such Sale,
the number of Common Shares proposed to be Sold and the price and other terms
on which such Selling Party proposes to make such Sale. For purposes of this
Agreement, any notice stating a Selling Party’s bona fide intention to Sell
Common Shares shall hereinafter be called a “Selling Party’s Notice”; the
Common Shares covered by any Selling Party’s Notice shall hereinafter be called
the “Offered Shares”; and the price and other terms on which the Selling Party
proposes to make such Sale shall hereinafter be called the “Offer Terms”. Each
Selling Party’s Notice shall constitute an irrevocable offer by the Selling
Party to Sell the Offered Shares on the Offer Terms to the Company and/or
Talecris LLC.

 

(b)           The
Company and Talecris LLC, acting jointly, may, within 30 days following the
date of their receipt of the Selling Party’s Notice (the “Offer Period”), give
the Selling Party a notice (the “Joint Notice”) that states (i) the
maximum amount of such Offered Shares that the Company and/or Talecris LLC
elects to purchase; (ii) that the election made in such notice is
irrevocable; and (iii) that either the Company or Talecris LLC, or the
Company and Talecris LLC together, irrevocably commit to purchase all, and not
less than all, of the Offered Shares on the Offer Terms. In determining the
allocation of the Offered Shares between the Company and Talecris LLC, the
Company shall have the right to elect to purchase any amount of the Offered
Shares up to the maximum amount, and Talecris LLC shall have the right to elect
to purchase the remainder, if any, of the Offered Shares that the Company does
not elect to purchase.

 

14

 

(c)           The
closing of any purchase and Sale to the Company and/or Talecris LLC pursuant to
this Section 3.05 shall take place on such date as the applicable parties
shall mutually agree, but not later than 45 days following the expiration of
the Offer Period.

 

(d)           Upon
expiration of the Offer Period, without the Offered Shares being accepted in
full by either or both Talecris LLC and the Company in accordance with this
Section 3.05, the Selling Party shall be free, for 60 days following the
expiration of the Offer Period, to Sell the Offered Shares to any Third Party
pursuant to a bona fide offer in writing upon such terms and conditions as the
Selling Party may desire; provided, however, that the Offered Shares may be
Sold to the Third Party only if the per Offered Share purchase price actually
and irrevocably paid by such Third Party is equal to or greater than 95% of the
proposed purchase price contained in the Offer Terms.

 

(e)           Upon
the request of the Company or Talecris LLC, the Selling Party shall provide to
Talecris LLC with documentation in a form reasonably satisfactory to Talecris
LLC that demonstrates compliance with Section 3.05(d).

 

(f)            If
the Selling Party shall not have Sold all of the Offered Shares prior to the
expiration of the 60-day period following the Offer Period, then the
commitments set forth in the applicable Selling Party’s Notice and the Joint
Notice shall terminate, the provisions of this Section 3.05 shall again
apply, and such Selling Party shall not effect a Sale or offer to effect a Sale
of any of its Common Shares not so Sold during such period without again
complying with this Section 3.05.

 

(g)           If,
pursuant to the Offer Terms, a Selling Party proposes to sell Offered Shares in
exchange for consideration other than cash and the Company and/or Talecris LLC
deliver a Joint Notice and commit to purchase the Offered Shares, the parties
shall engage an investment banking firm of national reputation mutually
acceptable to the parties (the “Valuation Firm”) to value such non-cash
consideration for purposes of determining the price in cash that the Company
and/or Talecris LLC shall pay such Selling Party for the Offered Shares. The
Selling Party shall, and if applicable shall cause the proposed purchaser of
the Offered Shares to, make available to the Valuation Firm all information
reasonably necessary to permit the Valuation Firm to value such non-cash
consideration. The parties will instruct the Valuation Firm to use its best
efforts to complete the valuation as promptly as practicable. The determination
of the Valuation Firm shall be binding on the parties. The Selling Party, on
the one hand, and the Company and Talecris LLC, on the other hand, shall share
equally in the costs, expenses and fees of the Valuation Firm.

 

(h)           This
Section 3.05 shall terminate immediately prior to the consummation of an
IPO.

 

Section 3.06           Agreement to be
Bound.

 

(a)           No
Transfer of Shares by any IBR Party, other than pursuant to
Section 3.01(a)(iii), Section 3.03, Section 3.04 or Section 3.08
shall be effective unless the transferee shall have executed and delivered to
the Company, as a condition precedent to such Transfer, an agreement in form
and substance reasonably satisfactory to the Company confirming that such
transferee agrees to be bound by the terms of this Agreement, including,
without limitation, Sections 3.01, 3.03, 3.04, 3.05, 3.07 and 5.02, and
such transferee shall

 

15

 

thereafter be
deemed an IBR Party for purposes of this Agreement and shall succeed to the
rights of any IBR Party hereunder.

 

(b)           Notwithstanding the
provisions of Section 3.06(a) to the contrary, a Transfer of Common Shares by
an IBR Party in accordance with the provisions of Section 3.08 only shall be
effective if the transferee shall have executed and delivered to the Company,
as a condition precedent to such Transfer, an agreement in form and substance
satisfactory to the Company and such transferee confirming that such transferee
agrees to be bound by terms substantially similar to the terms of this
Agreement; provided however, that such agreement shall not contain any of the
restrictions contained in Section 3.05 hereof.

 

Section 3.07                                Compliance
with Securities Laws.

 

No Stockholder shall Sell any securities of the Company, and the
Company shall not transfer on its books any securities, unless (a) the
Sale is pursuant to an effective Registration Statement under the Securities
Act and under any applicable state securities or blue sky laws or (b) such
Stockholder shall have furnished the Company with an opinion of counsel, to the
extent reasonably required by the transfer agent of the Company, to the effect
that no such registration is required because of the availability of an
exemption from registration under the Securities Act and under applicable state
securities or blue sky laws. The Company shall require an opinion of counsel
for Sales by the IBR Parties in compliance with Rule 144 under the Securities
Act or any successor rule. The Company acknowledges and agrees that a Sale made
in compliance with the Securities Act and applicable state securities and blue
sky laws to an entity owning, directly or indirectly, all the common equity of
such Stockholder or any wholly owned direct or indirect subsidiary of such
parent entity shall be deemed to be in compliance with this Agreement and no such
opinion of counsel shall be required. From and after the date that is two years
after the issuance of Common Shares to any IBR Party (calculated in accordance
with Rule 144 under the Securities Act or any successor rule), the Company
shall, upon request by such IBR Party and upon receipt of an opinion of counsel
in form, substance and scope reasonably acceptable to the Company, to the
effect that registration is not required under the Securities Act or any
applicable state securities law or blue sky laws due to the applicability of an
exemption therefrom, as promptly as practicable cause the first paragraph of
the legend described in Section 3.02 (to the extent any portion of such legend
is then inapplicable) to be removed from each certificate evidencing Common
Shares held by such IBR Party.

 

Section 3.08                                Transfers
following breach of Purchase Agreement section 2(h)(ii).

 

Notwithstanding any other provision of this Article III to the contrary
(except Section 3.06(b)), if the Company fails to pay the Repurchase Price on
or before the 30th day after the Repurchase Closing Date in
accordance with Section 2(h)(ii) of the Purchase Agreement, then the
restrictions on an IBR Party’s Transfer of the Common Shares contained in
Sections 3.01(a) and 3.05 thereupon no longer shall prohibit such a Transfer by
any IBR Party.

 

16

 

ARTICLE IV

 

REGISTRATION
RIGHTS

 

Section 4.01           Demand Registration
Rights.

 

(a)           Commencing nine months following the consummation of an IPO (but not
within any applicable lock-up period set forth in any underwriting or lock-up
agreement for any Public Offering), the IBR Parties collectively have the
one-time right (which may be exercised by the holders of at least 50% of the
Registrable Securities held collectively by the IBR Parties), and Talecris LLC
shall have an unlimited number of rights, to require the Company to file a
Registration Statement under the Securities Act, covering all or any part of
their respective Registrable Securities, by delivering a written notice
therefor to the Company specifying the number of Registrable Securities to be
included in such registration and the intended method of distribution thereof;
provided, however, that during the period commencing nine months following the
consummation of an IPO and ending on the one-year anniversary of such IPO the
IBR Parties shall not be able to exercise such one-time right as of any date if
another Registration Statement registering common stock or securities
convertible into common stock (other than a Registration Statement on Form S-8)
filed by the Company has been declared effective by the SEC on a date within
the previous three months. Such request pursuant to this Section 4.01 is
referred to herein as the “Demand Registration Request,” the registration so
requested is referred to herein as the “Demand Registration” and the party
making such request is the “Demanding Party.” As promptly as practicable, but
no later than ten Business Days after receipt of the Demand Registration
Request, the Company shall give written notice (the “Demand Exercise Notice”)
of such Demand Registration Request to all Stockholders party hereto and any
other Stockholders with piggyback registration rights pursuant to Section 4.02
hereof or any similar agreement. In all instances, the Demanding Party and the
Company shall cooperate in good faith regarding a Demand Registration Request
should the Company have any planned offering(s), or had effectuated an offering
of common stock or securities convertible into common stock (other than
pursuant to a Registration Statement on Form S-8), within six months of such
Demand Registration. Should the IBR Parties be a Demanding Party and should
such Demanding Party and the Company agree to withdraw a Demand Registration
Request pursuant to the previous sentence of this Section 4.01, the IBR Parties
shall still have their one-time right for a Demand Registration Request.

 

(b)           The Company shall include in the Demand Registration the Registrable
Securities of any Stockholders parties hereto or party to any other agreement
providing similar piggyback registration rights that shall have made a written
request to the Company for inclusion thereof in such registration (which
request shall specify the maximum number of Registrable Securities intended to
be disposed of by such other Stockholders) within 30 days after the receipt of
the Demand Exercise Notice.

 

(c)           The
Company shall use its reasonable best efforts to (i) effect the
registration under the Securities Act (including by means of a shelf
registration pursuant to Rule 415 under the Securities Act if so requested by
the Demanding Party and the Company is then eligible to effect such a
registration) of the Registrable Securities which the Company has been so
requested to register by the Demanding Party and other Stockholders (to the
extent permitted to be included in accordance with the terms hereof), for
distribution, in accordance with such 

 

17

 

intended method of distribution and (ii) if
requested by the Demanding Party, obtain acceleration of the effective date of
the Registration Statement relating to such registration.

 

(d)           A
registration requested pursuant to this Section 4.01 will not be deemed to
have been effected unless the relevant Registration Statement has become
effective; provided that if, after it has become effective, the offering of
Registrable Securities pursuant to such registration is subject to any stop
order, injunction or other order or requirement of the Commission or other
Governmental Authority for an aggregate of more than 30 days in the 210 days
following the date of effectiveness, such registration will be deemed not to
have been effected.

 

(e)           If
a requested registration pursuant to this Section 4.01 involves an
underwritten offering, the Demanding Party shall have the right to select an
investment banker or bankers of nationally recognized standing to administer
the offering; provided, however, that such investment banker or bankers shall
be reasonably satisfactory to the Company. The Company shall notify the
Demanding Party if the Company objects to any investment banker or manager
selected by the Demanding Party pursuant to this
Section 4.01(e) within ten Business Days after the Demanding Party
has notified the Company of such selection.

 

(f)            Notwithstanding
anything to the contrary in this Section 4.01:

 

(i)            If the managing
underwriter of any underwritten Public Offering shall advise the Stockholders
participating in a Demand Registration that the Registrable Securities covered
by the Registration Statement cannot be sold in such offering within a price
range acceptable to the Demanding Party, then the Demanding Party shall have
the right to notify the Company that it has determined that the Registration
Statement be abandoned or withdrawn, in which event the Company shall abandon
or withdraw such Registration Statement.

 

(ii)           If the Board of
Directors of the Company determines in good faith that a Disadvantageous
Condition exists, the Company shall, notwithstanding any other provision of
this Article IV, be entitled, upon the giving of a written notice (a “Delay
Notice”) to such effect to each holder of Registrable Securities included or to
be included in such Registration Statement, to delay the filing of such
Registration Statement until, in the judgment of the Board of Directors of the
Company, such Disadvantageous Condition no longer exists (notice of which the
Company shall promptly deliver to the holders of the Registrable Securities
with respect to which any such Registration Statement was to have been filed);
provided, however, that such delay shall not exceed a period of 120 days from
the date the Demand Registration Request is received by the Company; provided,
further, that the Company may not utilize this right more than once in any
twelve-month period.

 

(iii)          Notwithstanding the
foregoing provisions of this Section 4.01(f), no Registration Statement
filed and subsequently withdrawn pursuant to clause (i) or by reason of
any existing or anticipated Disadvantageous Condition as provided in clause
(ii) shall count as the one Registration Statement referred to in the
limitation to IBR Parties in Section 4.01(g)(i).

 

18

 

(iv)          If, as a result of
Section 4.01(g), fewer than all of the Registrable Securities of the IBR
Parties as to which the IBR Parties demanded registration have been registered,
then the IBR Parties shall be entitled to one additional demand registration
right.

 

(g)           In
connection with any Demand Registration Request, if the managing underwriter
shall advise the Company that, in its view, the number of securities (including
all Registrable Securities) that the Company and holders of Registrable
Securities intend to include in such registration exceeds the largest number of
securities which can be sold in such offering at a price reasonably acceptable
to the Demanding Party (the “Demand Registration Maximum Offering Size”), the
Company will include first in such registration, Registrable Securities in the
following priority, up to the Demand Registration Maximum Offering Size:

 

(i)            first, the Registrable
Securities that the Demanding Party proposes to include in such registration
or, in the case of a demand by Talecris LLC, the Registrable Securities of
Talecris LLC and the IBR Parties pro rata on the basis of the relative number
of Registrable Securities each such holder has requested to be included in such
registration;

 

(ii)           second, the Registrable
Securities that the Company proposes to include in such registration; and

 

(iii)          third, the Registrable
Securities that other Stockholders propose to include in such registration.

 

(h)           In
addition, the Company shall not be obligated to effect, or to take any action
to effect, any registration pursuant to this Section 4.01 with respect to
any Demanding Party, during the period starting with the date 30 days prior to
the Company’s good faith estimate of the date of filing of, and ending on a
date 180 days after the effective date of, a registration subject to
Section 4.02 hereof.

 

Section 4.02           Piggyback
Registration Rights.

 

(a)           At
any time commencing six months following an IPO, if the Company proposes to
register any shares of Common Stock under the Securities Act on a form and in a
manner that would permit registration of Registrable Securities for sale to the
public under the Securities Act, each holder of Registrable Securities will
have the right to include its Registrable Securities in such registration in
accordance with this Section 4.02 and the Company will give prompt written
notice to all holders of Registrable Securities of its intention to do so,
describing the number of shares to be registered for sale and specifying the
form and manner and the other relevant facts involved in such proposed
registration (including, without limitation, whether or not such registration
will be in connection with an underwritten offering of its Common Stock and, if
so, the identity of the managing underwriter and whether such offering will be
pursuant to a “best efforts” or “firm commitment” underwriting). Upon the
written request of any holder of Registrable Securities delivered to the
Company within 10 days after such notice shall have been received by such
holder (which request shall specify the maximum number of Registrable
Securities intended to be disposed of by such holder and shall confirm that
such holder will dispose of such Registrable Securities pursuant to the Company’s
intended method of disposition), the Company will use its reasonable best
efforts to effect the registration under the Securities Act of all Registrable
Securities that the Company has been so requested to register by 

 

19

 

the holders of Registrable Securities, to the extent
requisite to permit the disposition (in accordance with the Company’s intended
method of disposition) of the Registrable Securities so to be registered;
provided, however, that:

 

(i)            if such registration
involves an underwritten offering, all holders of Registrable Securities
requesting to be included in such registration must sell their Registrable
Securities to the underwriters selected by the Company on the same terms and
conditions as apply to the Company;

 

(ii)           if, at any time after
giving such written notice of its intention to register any of such Registrable
Securities for sale, and prior to the effective date of the Registration
Statement filed in connection with such registration, the Company shall
determine for any reason to withdraw such Registration Statement, the Company
may, at its election, give written notice of such determination to each holder
of Registrable Securities that has requested to register Registrable Securities
and thereupon the Company shall be relieved of its obligation to register any
Registrable Securities in connection with such registration; provided, however,
that all Registration Expenses of such withdrawn registration shall be borne by
the Company in accordance with Section 4.04 hereof; and

 

(iii)          the Company shall have
no obligation to provide piggy back registration rights pursuant to this
Section 4.02 during the period starting with the date 30 days prior to the
Company’s good faith estimate of the date of filing of, and ending on a date
180 days after the effective date of, a registration subject to
Section 4.01 hereof; provided, however, that the Company is using its
reasonable best efforts to cause such registration statement to become
effective and all Registrable Securities requested by the holders to be
registered shall have been so registered.

 

(b)           In
connection with any Public Offering with respect to which holders of Registrable
Securities shall have requested registration pursuant to this
Section 4.02, if the managing underwriter shall advise the Company that,
in its view, the number of securities (including all Registrable Securities)
that the Company and holders of Registrable Securities intend to include in
such registration exceeds the largest number of securities which can be sold
without having an adverse effect on such offering, including the price at which
such securities can be sold (the “Piggyback Registration Maximum Offering Size”),
the Company will include in such registration, in the following priority, up to
the Piggyback Registration Maximum Offering Size:

 

(i)            first, all the
securities that the Company proposes to include in such registration; and

 

(ii)           second, all securities
requested to be included in such registration by all other holders of
securities which are entitled to incidental registration rights (allocated, if
necessary for the offering not to exceed the Piggyback Registration Maximum
Offering Size, pro rata among such holders on the basis of the relative number
of securities each such holder shall have requested to be included in such
registration).

 

20

 

(c)           If
a Stockholder decides not to include all of its Registrable Securities in any
Registration Statement thereafter filed by the Company, such Stockholder shall
nevertheless continue to have the right to include any Registrable Securities
in any subsequent Registration Statement or Registration Statements as may be
filed by the Company with respect to offerings of securities, all upon the
terms and conditions set forth herein.

 

Section 4.03           Registration on Form
S-3.

 

After the date
on which the Company or Parent has effected an IPO, if the Company is entitled
to use Form S-3 (or any successor form to Form S-3 regardless of its
designation) for a public offering of securities, any IBR Party may require,
upon written notice specifying that such notice is being made pursuant to this
Section 4.03, that the Company file a Registration Statement on Form S-3
for a public offering of securities having an aggregate value of at least $10
million; provided, however, that the Company will not be obligated to effect
more than one Form S-3 Registration Statement in any twelve-month period. Any
such offering shall not be required to be underwritten.

 

Section 4.04           Registration
Expenses.

 

The Company
shall pay all Registration Expenses in connection with the registration of
Registrable Securities effected by it pursuant to this Article IV. “Registration
Expenses” means all expenses incident to the Company’s performance of or
compliance with Article IV, including, without limitation, all
registration, filing and qualification fees (including filing fees with respect
to the NASD), all fees and expenses of complying with state securities or “blue
sky” laws (including reasonable fees and disbursements of underwriters’ counsel
in connection with any “blue sky” memorandum or survey), all printing expenses,
all listing fees, all registrars’ and transfer agents’ fees, the fees and
disbursements of counsel for the Company and of its independent certified
public accountants, including the expenses of any special audits and/or “comfort”
letters required by or incident to such performance and compliance, but
excluding underwriting discounts and commissions, applicable transfer taxes, if
any, and the fees and disbursements of the attorneys-in-fact, the custodian and
counsel for the sellers of Registrable Securities. Notwithstanding the
foregoing, the Company shall not be responsible for any other underwriters’
fees or expenses related to a broken transaction that the Company did not
cause.

 

Section 4.05           Registration
Procedures.

 

(a)           If
and whenever the Company is required to effect the registration of any
Registrable Securities under the Securities Act as provided in this
Article IV, the Company will:

 

(i)            promptly prepare and
file with the Commission a Registration Statement with respect to such
Registrable Securities and use its reasonable best efforts to cause such
Registration Statement to become effective as soon as reasonably practicable
thereafter;

 

(ii)           prepare and file with
the Commission such amendments (including any statutory prospectus, preliminary
prospectus or issuer free writing prospectus or any amendment or supplement)
and supplements to such Registration Statement and the Prospectus used in
connection therewith as may be necessary to keep such Registration Statement
effective and to comply with the provisions of the Securities Act with respect
to the disposition of all Registrable Securities and other securities covered
by such Registration Statement until the earlier of 

 

21

 

(a) such time as all
such Registrable Securities and other securities have been disposed of in
accordance with the intended methods of disposition by the seller or sellers
thereof set forth in such Registration Statement and (b) the expiration of
six months from the date such Registration Statement first becomes effective;

 

(iii)          furnish to each seller
of such Registrable Securities such number conformed copies of such
Registration Statement and of each such amendment and supplement thereto (in
each case including all exhibits), such number of copies of the Prospectus
included in such Registration Statement, in conformity with the requirements of
the Securities Act, such documents incorporated by reference in such
Registration Statement or Prospectus and such other documents as such seller
may reasonably request in order to facilitate the Sale of such Registrable
Securities;

 

(iv)          register or qualify all
Registrable Securities and other securities covered by such Registration
Statement under such other securities or “blue sky” laws of such jurisdictions
as each seller shall reasonably request, and do any and all other acts and
things that may be necessary to enable such seller to consummate the
disposition in such jurisdictions of its Registrable Securities covered by such
Registration Statement, except that the Company shall not for any such purpose
be required to qualify generally to do business as a foreign corporation in any
jurisdiction wherein it is not so qualified, to subject itself to taxation in
respect of doing business in any such jurisdiction or to consent to general
service of process in any such jurisdiction;

 

(v)           furnish to each seller
of Registrable Securities, on the date that the Registrable Securities are
delivered to the underwriters for sale in connection with a Public Offering,
or, if such registration does not involve a Public Offering on the date that
the Registration Statement with respect to such Registrable Securities becomes
effective, (a) an opinion, dated such date, of the counsel representing
the Company for the purpose of such registration, in form and substance as is
customarily given to underwriters in a Public Offering, addressed to the
underwriters, if any, or if there are no such underwriters, to the sellers of
Registrable Securities in such registration and (b) a “comfort” letter
dated such date, from the independent certified public accountants of the
Company, in form and substance as is customarily given by independent certified
public accountants to underwriters in a Public Offering, addressed to the
underwriters, if any, or if there are no such underwriters, to the sellers of
Registrable Securities;

 

(vi)          promptly notify each
seller of Registrable Securities covered by such Registration Statement at any
time when a Prospectus relating thereto is required to be delivered under the
Securities Act, of the happening of any event as a result of which the
Prospectus included in such Registration Statement, as then in effect, includes
an untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing and if it is
necessary to amend or supplement such Prospectus to comply with applicable law,
and at the request of any such seller prepare and furnish to such seller a
reasonable number of copies of a supplement to or an amendment of such 

 

22

 

Prospectus as may be
necessary so that, as thereafter delivered to the purchasers of such
Registrable Securities, such Prospectus shall not include an untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light
of the circumstances then existing and shall otherwise comply in all material
respects with applicable law;

 

(vii)         comply with all
applicable rules and regulations of the Commission, and make available to its
security holders, as soon as reasonably practicable, an earning statement
covering a period of at least twelve months, beginning with the first month of
the first fiscal quarter after the effective date of such Registration
Statement, which earning statement shall satisfy the provisions of
Section 11(a) of the Securities Act;

 

(viii)        send appropriate officers
of the Company to attend any “road shows” and analyst presentations and
otherwise use commercially reasonable efforts to cooperate as requested by the
underwriters or sellers of Registrable Securities in the offering, marketing or
selling of the Registrable Securities;

 

(ix)           cause all such
Registrable Securities registered pursuant hereto to be listed on a securities
exchange or quoted on any interdealer quotation system, if such listing or
quotation is then permitted under the rules of such exchange or quotation
system, and provide a transfer agent, registrar and CUSIP number for such
Registrable Securities no later than the effective date of such Registration
Statement; and

 

(x)            issue to any
underwriter to which any holder of Registrable Securities may sell such
Registrable Securities in connection with any such registration (and to any
direct or indirect transferee of any such underwriter) certificates evidencing
shares of Common Stock without the legends described in Section 3.02.

 

The Company
may require each seller of Registrable Securities as to which any registration
is being effected to furnish the Company with such information regarding such
seller and the distribution of such Registrable Securities as the Company may
from time to time reasonably request in writing and as shall be required by
applicable law or by the Commission in connection therewith. The Company shall
have no obligation to go effective or incur costs until the seller of such
Registrable Securities provides such information to the Company; provided,
however, that if the applicable Registration Statement is a resale shelf
registration statement filed pursuant to Rule 415 under the Securities Act, the
Company shall have the right to exclude such seller from the table of selling
stockholders set forth in such Registration Statement pending receipt of such
information but not to delay the preparation, filing or declaration of
effectiveness of such Registration Statement to the extent that such
Registration Statement is for the benefit of other selling stockholders and
such other selling stockholder(s) caused the Company to file such Registration
Statement.

 

(b)           If
requested by the underwriters for any Public Offering of Registrable Securities
on behalf of a holder or holders of Registrable Securities pursuant to a
registration requested under Section 4.01 or 4.02 hereof, the Company and
the Stockholders will enter into and perform its respective obligations under
an underwriting agreement with such underwriters 

 

23

 

for such offering, such agreement to contain such
representations and warranties by the Company and the Stockholders and such
other terms and conditions as are customarily contained in underwriting
agreements with respect to secondary distributions, including, without
limitation, indemnities to the effect and to the extent provided in
Sections 4.07 and 4.08 hereof.

 

(c)           If
any registration pursuant to Section 4.01 or 4.02 hereof shall be in
connection with an underwritten Public Offering, each Stockholder that includes
Registrable Securities in such Public Offering agrees, if so required by the
managing underwriter(s), not to effect any public sale or distribution
(including any sale pursuant to Rule 144) of Registrable Securities (other than
as part of such underwritten Public Offering) within seven days prior to the
anticipated effective date of the Registration Statement with respect to such
underwritten Public Offering or 90 days after the effective date of such
Registration Statement; provided, however, that the 90 day period referred to
in this Section 4.05(c) may be extended to up to 180 days upon the
managing underwriter’s or underwriters’ reasonable request.

 

(d)           The
Company agrees, if so required by the managing underwriter(s) in connection
with an underwritten Public Offering of Registrable Securities pursuant to
Section 4.01 or 4.02, not to effect any public sale or distribution of any
of its Equity Interests (other than as part of such underwritten Public
Offering) within seven days prior to the anticipated effective date of the
Registration Statement with respect to such underwritten Public Offering or 90
days after the effective date of such Registration Statement, except in
connection with any equity incentive plan, agreement, bonus, award, stock
purchase plan, stock option plan or other stock arrangement registered on Form
S-8 or an acquisition, merger or exchange offer; provided, however, that the
90-day period referred to in this Section 4.05(d) may be extended to
up to 180 days upon the managing underwriter’s or underwriters’ reasonable
request.

 

(e)           It
is understood that in any underwritten offering of Registrable Securities in
addition to the shares (the “Initial Shares”) the underwriters have committed
to purchase, the underwriting agreement may grant the underwriters an option to
purchase a number of additional shares (the “Overallotment Option Shares”)
equal to up to 15% of the Initial Shares (or such other maximum amount as the
NASD may then permit), solely to cover over-allotments. Shares proposed to be
sold by the Company and the holders of Registrable Securities shall be
allocated between Initial Shares and Overallotment Option Shares as agreed or,
in the absence of agreement, pursuant to Sections 4.01 or 4.02 hereof.

 

(f)            No
holder of Registrable Securities may participate in any Public Offering
hereunder unless such holder (i) agrees to sell its Registrable Securities
on the basis provided in any underwriting arrangements approved by the persons
entitled hereunder to approve such arrangements and (ii) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements and this Article IV.

 

Section 4.06           Preparation;
Reasonable Investigation.

 

In connection
with the preparation and filing of each Registration Statement registering
Registrable Securities under the Securities Act, the Company will give the
holders of Registrable Securities on whose behalf such Registrable Securities
are to be so registered and their underwriters, if any, and their respective
counsel and accountants, the opportunity to participate in the preparation of
such Registration Statement, each Prospectus included therein or filed with the
Commission, and each amendment thereof or supplement thereto, and will give
each of them 

 

24

 

such access to
its books and records and such opportunities to discuss the business of the
Company with its officers and the independent public accountants who have
issued a report on its financial statements as shall be reasonably necessary,
in the opinion of such holders and such underwriters or their respective
counsel, to conduct a reasonable investigation within the meaning of the
Securities Act.

 

Section 4.07           Indemnification.

 

(a)           In
the case of any Registration Statement filed under the Securities Act pursuant
to Section 4.01 or Section 4.02, the Company will, and hereby does,
indemnify and hold harmless, the seller of any Registrable Securities covered
by such Registration Statement, its directors, officers and employees, each
other Person who participates as an underwriter in the offering or sale of such
Registrable Securities, each officer, director and employee of each such
underwriter, and each other Person, if any, who controls such seller, or each
officer, director an employee of such seller, such underwriter, or each
officer, director and employee of such underwriter, within the meaning of
Section 15 of the Securities Act or Section 20(a) of the Exchange
Act, against any losses, claims, damages, liabilities and expenses, joint or
several, to which any such Person may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages, liabilities or expenses (or
actions or proceedings in respect thereof) arise out of or are based upon (i)
any untrue statement or alleged untrue statement of a material fact in any
Registration Statement (including any document incorporated by reference
therein) under which the Registrable Securities were registered under the
Securities Act or any statutory prospectus, preliminary prospectus or issuer
free writing prospectus or any amendment or supplement thereto or in any filing
made in connection with the qualification of the offering under the securities
or other “blue sky” laws of any jurisdiction in which Registrable Securities
are offered, or the omission or alleged omission to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or (ii) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act or other federal or state law or any rule or
regulation promulgated under the Securities Act, the Exchange Act or other
federal or state law; and the Company will reimburse each such Person for any
legal or any other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or expense;
provided, however, that the Company shall not be liable in any such case to the
extent that any such loss, claim, damage, liability or expense (or action or
proceeding in respect thereof) arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
such Registration Statement, statutory prospectus, preliminary prospectus,
issuer free writing prospectus or blue sky filing or any amendment or
supplement thereto in reliance upon and in conformity with written information
furnished to the Company for use in the preparation thereof by such seller,
underwriter or non-selling controlling Person, as the case may be. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Person and shall survive the transfer of such
securities by such the seller.

 

(b)           The
Company may require, as a condition to including any Registrable Securities in
any Registration Statement filed pursuant to this Article IV, that the
Company shall have received an undertaking reasonably satisfactory to it from
(i) the prospective seller of such Registrable Securities, to indemnify
and hold harmless (in the same manner and to the same extent as set forth in Section 4.07(a) hereof,
except that any such prospective seller shall not in any event be liable to the
Company pursuant thereto for an amount in excess of the net proceeds 

 

25

 

of the sale of such prospective seller’s Registrable
Securities so to be sold) the Company, each officer, director and employee of
the Company, each underwriter of such securities, each officer, director and
employee of each such underwriter and each other Person, if any, who controls
the Company or any such underwriter or any officer, director or employee
thereof within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act and (ii) each such underwriter of such
securities, to indemnify and hold harmless (in the same manner and to the same
extent as set forth in Section 4.07(a) hereof) the Company, each
officer, director and employee of the Company, each prospective seller, each
officer, director and employee of each prospective seller and each other
Person, if any, who controls the Company or any such prospective seller or any
officer, director or employee thereof within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act, with respect to any
statement in or omission from such Registration Statement, any Prospectus
included therein, or any amendment or supplement thereto, if such statement or
omission was made in reliance upon and in conformity with written information
furnished by such prospective seller or such underwriter, as the case may be,
to the Company for use in the preparation of such Registration Statement,
Prospectus, amendment or supplement; provided, however, that the indemnity
agreement contained in this subsection 4.07(b) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or expense (or
action or proceeding in respect thereof) if such settlement is effected without
the consent of the indemnifying party; provided that in no event shall any
indemnity under this subsection 4.07(b) exceed the net proceeds from the
offering received by such indemnifying party. Such indemnity shall remain in
full force and effect regardless of any investigation made by the indemnified
party and shall survive the transfer of such securities by such seller.

 

(c)           Promptly
after receipt by an indemnified party of notice of the commencement of any
action or proceeding (including any investigation by any Governmental
Authority) involving a claim referred to in Section 4.07(a) or
(b) hereof, such indemnified party will, if a claim in respect thereof is
to be made against an indemnifying party, give written notice to the latter of
the commencement of such action; provided, however, that the failure of any
indemnified party to give notice as provided herein shall not relieve the
indemnifying party of its obligations under the preceding provisions of this
Section 4.07, except to the extent that the indemnifying party is actually
prejudiced by such failure to give notice. In case any such action is brought
against an indemnified party, unless in such indemnified party’s reasonable
judgment a conflict of interest between such indemnified and indemnifying
parties may exist in respect of such claim (in which case, the indemnifying
party shall not be liable for the fees and expenses of more than one
(1) counsel for all sellers of Registrable Securities, or more than one
counsel for the underwriters in connection with any one (1) action or
separate but similar or related actions), the indemnifying party will be
entitled to participate in and to assume the defense thereof, jointly with any
other indemnifying party similarly notified, to the extent that it may wish
with counsel reasonably satisfactory to such indemnified party, and after
notice from the indemnifying party to such indemnified party of its election so
to assume the defense thereof, the indemnifying party will not be liable to
such indemnified party for any legal or other expenses subsequently incurred by
the latter in connection with the defense thereof.

 

Section 4.08           Contribution.

 

(a)           If
the indemnification provided for in Section 4.07 is unavailable to the
indemnified parties in respect of any losses, claims, damages, liabilities or
expenses referred to 

 

26

 

therein, then each indemnifying party shall contribute
to the amounts paid or payable by such indemnified party as a result of such
losses, claims, damages, liabilities or expenses (i) as among the Company and
each of the selling holders of Registrable Securities covered by a Registration
Statement, on the one hand, and the underwriters, on the other, in such
proportion as is appropriate to reflect the relative benefits received by the
Company and each such selling holder, on the one hand, and the underwriters, on
the other, from the offering of the Registrable Securities, or if such
allocation is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits but also the relative
fault of the Company and each such selling holder, on the one hand, and of the
underwriters, on the other, in connection with the statements or omissions that
resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations and (ii) as between the Company, on the one
hand, and each selling holder of Registrable Securities covered by a
Registration Statement, on the other, in such proportion as is appropriate to
reflect the relative fault of the Company and of each such selling holder in
connection with such statements or omissions, as well as any other relevant
equitable considerations. The relative benefits received by the Company and
each such selling holder, on the one hand, and the underwriters, on the other,
shall be deemed to be in the same proportion as the total proceeds from the
offering (net of underwriting discounts and commissions but before deducting
expenses) received by the Company and each such selling holder bears to the
total underwriting discounts and commissions received by the underwriters. The
relative fault of the Company and any selling holder, on the one hand, and of
the underwriters, on the other, shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by the Company and any such selling holder or by the
underwriters. The relative fault of the Company, on the one hand, and of each
such selling holder, on the other, shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
relates to information supplied by the Company or any such selling holder, and
the parties’ (including as between selling holders) relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.

 

(b)           The
Company and the holders of Registrable Securities agree that it would not be
just and equitable if contribution pursuant to this Section 4.08 were
determined by pro rata allocation (even if the underwriters were treated as one
entity for such purpose) or by any other method of allocation that does not
take account of the equitable considerations referred to in the preceding
paragraph. The amount paid or payable by an indemnified party as a result of
the losses, claims, damages, liabilities or expenses referred to in the
preceding paragraph shall be deemed to include, subject to the limitations
set forth above, any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this Section 4.08, no
underwriter shall be required to contribute any amount in excess of the amount
by which the total price at which the Registrable Securities underwritten by it
and distributed to the public were offered to the public exceeds the amount of
any damages that such underwriter has otherwise been required to pay by reason
of such untrue or alleged untrue statement or omission or alleged omission, and
no holder of Registrable Securities shall be required to contribute any amount
in excess of the amount by which the total price at which the Registrable
Securities of such holder were offered to the public exceeds the amount of any
damages that such holder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission. No 

 

27

 

person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled
to contribution from any person who was not guilty of such fraudulent
misrepresentation. The obligation of each holder of Registrable Securities to
contribute pursuant to this Section 4.08 is several in the proportion that
the proceeds of the offering received by such holder bears to the total
proceeds of the offering received by all the holders and not joint.

 

Section 4.09           Nominees of
Beneficial Owners.

 

In the event
that any Registrable Securities are held by a nominee for the Beneficial Owner
thereof, the Beneficial Owner thereof may, at its election, be treated as the
holder of such Registrable Securities for purposes of any request or other
action by any holder holders of Registrable Securities pursuant to this
Agreement or any determination of any number or percentage of shares of
Registrable Securities held by any holder or holders of Registrable Securities
contemplated by this Agreement. If the Beneficial Owner of any Registrable
Securities so elects, the Company may require assurances reasonably
satisfactory to it of such Beneficial Owner’s ownership of such Registrable
Securities.

 

ARTICLE V

 

INFORMATION RIGHTS

 

Section 5.01           Requested
Information.

 

In connection
with any proposed Sale of Common Shares by any IBR Party pursuant to
Section 3.01(a)(i) or Section 3.08 (other than as part of a Public
Offering by the Company), upon written request by such IBR Party,  the Company shall use its reasonable best
efforts to cooperate with such IBR Party, at such IBR Party’s sole cost and
expense, to provide information reasonably necessary to allow the potential
purchaser to evaluate such Sale, subject to the prior execution by the
potential purchaser of a customary confidentiality agreement reasonably
satisfactory to the Company.

 

Section 5.02           Confidentiality.

 

(a)           The
IBR Parties from time to time will receive or have access to Confidential
Information pursuant to this Agreement. “Confidential Information” means
(i) all information, data, agreements, documents, reports and records
which are oral or in writing containing information concerning the Company or
its Affiliates or their businesses or assets, and (ii) all memoranda,
notes, analyses, compilations, studies or other documents which include any
such Confidential Information, whether prepared by the Company, an IBR Party or
their respective Affiliates, directors, employees, managers, members, partners,
representatives or agents (including attorneys, consultants, lenders, potential
investors and financial advisors) (collectively, “Representatives”); provided,
however, that “Confidential Information” does not include (i) information
which is obtained by such IBR Party after the date hereof from a source other
than the Company or its Affiliates or their respective Representatives,
(ii) information which is or becomes generally available to the public
other than as a result of a disclosure by an IBR Party in violation of this
Section 5.02, or (iii) information developed independently by an IBR
Party after the date hereof without use of the Confidential Information.

 

(b)           No
IBR Party, nor any Affiliate of any IBR Party, shall disclose or permit or
cause to be disclosed any Confidential Information to any Person nor use any
Confidential 

 

28

 

Information for its own purposes or its own account,
except as provided in subsections (c) through (e) below and
Section 5.01.

 

(c)           An
IBR Party (a “Disclosing Party”) may disclose the Confidential Information to
its Representatives who (x) need to know such information to permit its
Representatives to review and evaluate such Disclosing Party’s investment in
the Company, (y) are informed of the confidential nature of the Confidential
Information and (z) agree to maintain the confidentiality of the Confidential
Information. The Disclosing Party agrees to be fully responsible for any breach
of this Section 5.02 by any of its Representatives.

 

(d)           Notwithstanding
anything to the contrary set forth in this Section 5.02, if an IBR Party
or any of its Representatives are required to disclose any Confidential
Information pursuant to any applicable law, rule or regulation or a subpoena,
court order, similar judicial process, regulatory agency or stock exchange
rule, such IBR Party will, if possible, promptly notify the Company of any such
requirement so that the Company may seek an appropriate protective order or
waive compliance with the provisions of this Section 5.02. If such order
is not obtained, such IBR Party and its Representatives will disclose only that
portion of the Confidential Information which they are advised by counsel that
they are legally required to so disclose.

 

ARTICLE VI

 

REPRESENTATIONS

 

Section 6.01           Representations of
the Company.  The Company represents
and warrants that:

 

(a)           Due
Organization, Good Standing and Power. The Company is a corporation and is
duly organized or formed, validly existing and in good standing under the laws
of the state of Delaware. The Company has all requisite corporate or other
power and authority to own or lease and to operate its assets and to conduct
the business now being conducted by it. The Company is duly authorized,
qualified or licensed to do business as a foreign corporation or other organization
in good standing in each of the jurisdictions in which its ownership of
property or the conduct of its business requires such authorization,
qualification or licensing, except where the failure to have such
authorization, qualification or licensing could not reasonably be expected to
have a material adverse effect on the Company, or on the performance of its
obligations hereunder. The Company has all requisite corporate or other power
and authority under Applicable Law and its charter documents to enter into this
Agreement and to perform its obligations hereunder.

 

(b)           Authorization
and Validity of Agreement. The execution and delivery of this Agreement by
the Company and the performance by it of the obligations hereunder have been
duly authorized and approved by all necessary corporate or other action under
Applicable Law and the relevant Charter Documents on the part of the Company. This
Agreement has been duly executed and delivered by the Company and constitutes
the legal, valid and binding obligation of the Company enforceable against it
in accordance with its terms, except as that enforceability may be
(i) limited by any applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally,
(ii) subject to general principles of equity (regardless of whether that
enforceability is considered in a 

 

29

 

proceeding in equity or at law) and (iii) limited
by general principles of Applicable Law regarding the enforceability of
arbitral awards and judicial decisions.

 

(c)           Lack
of Conflicts. Neither the execution and delivery of this Agreement by the
Company or the performance by the Company of its obligations hereunder does or
will (i) conflict with, or result in the breach of any provision of, the
Charter Documents of the Company, (ii) violate any Applicable Law or any
permit, order, award, injunction, decree or judgment of any Governmental
Authority applicable to or binding upon the Company or to which any of the
properties or assets of the Company is subject or (iii) violate, conflict
with or constitute a material breach or termination of, or give any Person the
right to terminate, or constitute a material default, event of material default
or an event that, with notice, lapse of time or both, would constitute a
material default or event of material default, under the terms of any agreement
to which the Company is party.

 

(d)           No
Consents. The execution and delivery of this Agreement by the Company and
the performance by the Company of its obligations hereunder do not require any
Governmental Approval. No consent (other than Governmental Approvals) will be
required to be obtained by the Company for the performance of its obligations
hereunder.

 

(e)           Issued
and Outstanding Shares. All of the issued and outstanding shares of capital
stock of the Company have been duly authorized and are validly issued, fully
paid and non-assessable.

 

(f)            Charter
Documents. Attached hereto as Exhibit A, Exhibit B, Exhibit C and Exhibit D
are true, complete and correct copies of the Company’s Certificate of
Incorporation, Series A Senior Convertible Preferred Stock Designations, Series
B Senior Convertible Preferred Stock Designations and Junior Preferred Stock
Designations, respectively, certified as of a recent date by the Secretary of
State of Delaware, none of which have been amended or modified since the date
of such certification.

 

Section 6.02           Representations of
Talecris LLC. Talecris LLC represents and warrants that:

 

(a)           Due
Organization, Good Standing and Power. Talecris LLC is a limited liability
company and is duly organized or formed, validly existing and in good standing
under the laws of the state of Delaware. Talecris LLC has all requisite company
or other power and authority to own or lease and to operate its assets and to
conduct the business now being conducted by it. Talecris LLC is duly
authorized, qualified or licensed to do business as a foreign corporation or
other organization in good standing in each of the jurisdictions in which its
ownership of property or the conduct of its business requires such
authorization, qualification or licensing, except where the failure to have
such authorization, qualification or licensing could not reasonably be expected
to have a material adverse effect on Talecris LLC or on the performance of its
obligations hereunder. Talecris LLC has all requisite company or other power
and authority under Applicable Law and its Charter Documents to enter into this
Agreement and to perform its obligations hereunder.

 

(b)           Authorization
and Validity of Agreement. The execution and delivery of this Agreement by
Talecris LLC and the performance by Talecris LLC of the obligations hereunder
have been duly authorized and approved by all necessary company or other action
under Applicable Law and the relevant Charter Documents on the part of Talecris
LLC and do 

 

30

 

not require the approval of the equity holders of
Talecris LLC. This Agreement has been duly executed and delivered by Talecris
LLC and constitutes the legal, valid and binding obligation of Talecris LLC
enforceable against it in accordance with its terms, except as that
enforceability may be (i) limited by any applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally, (ii) subject to general
principles of equity (regardless of whether that enforceability is considered
in a proceeding in equity or at law) and (iii) limited by general
principles of Applicable Law regarding the enforceability of arbitral awards
and judicial decisions.

 

(c)           Lack
of Conflicts. Neither the execution and delivery of this Agreement by
Talecris LLC or the performance by Talecris LLC of its obligations hereunder
does or will (i) conflict with, or result in the breach of any provision
of, the Charter Documents of Talecris LLC, (ii) violate any Applicable Law
or any permit, order, award, injunction, decree or judgment of any Governmental
Authority applicable to or binding upon Talecris LLC or to which any of the
properties or assets of Talecris LLC is subject or (iii) violate, conflict
with or constitute a material breach or termination of, or give any Person the
right to terminate, or constitute a material default, event of material default
or an event that, with notice, lapse of time or both, would constitute a
material default or event of material default, under the terms of any agreement
to which Talecris LLC is party.

 

(d)           No
Consents. The execution and delivery of this Agreement by Talecris LLC and
the performance by Talecris LLC of its obligations hereunder do not require any
Governmental Approval. No consent (other than Governmental Approvals) will be
required to be obtained by Talecris LLC for the performance of their respective
obligations hereunder.

 

(e)           Ownership.
Cerberus and Ampersand collectively beneficially own 100% of the membership
interests in Talecris LLC.

 

Section 6.03           Representations of
IBR. Each IBR Party, severally as to itself, represents and warrants that:

 

(a)           Due
Organization, Good Standing and Power. If such IBR Party is a limited
liability company, corporation or other entity, such IBR Party is a limited
liability company duly organized, corporation or other entity, validly existing
and in good standing under the laws of its state of formation. If such IBR
Party is a limited liability company, corporation or other entity, such IBR
Party has all requisite company, corporation or other power and authority under
Applicable Law and its charter documents to enter into this Agreement, own the
Common Shares and perform its obligations hereunder. If such IBR Party is an
individual, such IBR Party is an adult and sui juris.

 

(b)           Authorization
and Validity of Agreement. If such IBR Party is a limited liability
company, corporation or other entity, the execution and delivery of this
Agreement by such IBR Party and the performance of such IBR Party’s obligations
hereunder have been duly authorized and approved by all necessary company,
corporate or other action under Applicable Law and the relevant charter
documents on the part of such IBR Party and does not require the approval of
the equity holders of such IBR Party, except for such approvals as have been
obtained prior to the date of such IBR Party’s execution of this Agreement. This
Agreement has been duly executed and delivered by such IBR Party and
constitutes the legal, valid and binding obligation of such IBR Party,
enforceable against such IBR Party in accordance with its terms, except as that
enforceability may be (i) limited by any applicable bankruptcy,
insolvency, 

 

31

 

reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally, (ii) subject to general
principles of equity (regardless of whether that enforceability is considered
in a proceeding in equity or at law) and (iii) limited by general
principles of Applicable Law regarding the enforceability of arbitral awards and
judicial decisions.

 

(c)           Lack
of Conflicts. Neither the execution and delivery of this Agreement by such
IBR Party or the performance of such IBR Party’s obligations hereunder does or
will (i) conflict with, or result in the breach of any provision of, the
charter documents of such IBR Party, if such IBR Party is a limited liability
company or other entity, (ii) violate any Applicable Law or any permit,
order, award, injunction, decree or judgment of any Governmental Authority
applicable to or binding upon such IBR Party or to which any of such IBR Party’s
properties or assets is subject, or (iii) violate, conflict with or
constitute a material breach or termination of, or give any Person the right to
terminate, or constitute a material default, event of material default or an
event that, with notice, lapse of time or both, would constitute a material
default or event of material default, under the terms of any agreement to which
such IBR Party is party.

 

(d)           No
Consents. The execution and delivery of this Agreement by such IBR Party
and the performance of its obligations hereunder do not require any
Governmental Approval. No consent (other than Governmental Approvals) will be
required to be obtained by such IBR Party for the performance of its
obligations hereunder.

 

ARTICLE VII

 

INDEMNIFICATION

 

Section 7.01           Indemnification.
Subject to the provisions of Section 4.07 and Section 4.08:

 

(a)           Indemnity
by the Company. The Company shall indemnify and hold harmless the IBR
Parties and Talecris LLC against any and all claims or losses now existing or
hereinafter arising, whether known or unknown, out of: (i) any inaccuracy
in any of the representations or breach of any of the warranties made in this
Agreement by the Company or (ii) any breach or default in performance of
any of the obligations that are to be performed by the Company under this
Agreement.

 

(b)           Indemnity
by Talecris LLC. Talecris LLC shall indemnify and hold harmless the IBR
Parties and the Company against any and all claims or losses now existing or
hereinafter arising, whether known or unknown, out of: (i) any inaccuracy
in any of the representations or breach of any of the warranties made in this
Agreement by Talecris LLC or (ii) any breach or default in performance of
any of the obligations that are to be performed by Talecris LLC under this
Agreement.

 

(c)           Indemnity
by the IBR Parties. The IBR Parties shall indemnify and hold harmless the
Company and Talecris LLC against any and all claims or losses now existing or
hereinafter arising, whether known or unknown, out of: (i) any inaccuracy
in any of the representations or breach of any of the warranties made in this
Agreement by the IBR Parties or (ii) any breach or default in performance
of any of the obligations that are to be performed by the IBR Parties under
this Agreement.

 

(d)           Survival.
The right to indemnification under this Section shall survive
indefinitely.

 

32

 

Section 7.02           Enforcing Claims
Under Indemnity.

 

(a)           If
an Indemnified Party intends to seek indemnity under this Article VII,
such Indemnified Party shall promptly notify the Indemnifying Party in writing
of such claims setting forth the amount of the claim or loss, if known, and the
method of computation thereof, if known, and containing a reference to the
section of this Agreement under which the Indemnified Party seeks
indemnification; provided, however, that the failure to provide such notice
shall not affect the obligations of the Indemnifying Party unless it is
actually prejudiced thereby. If the Indemnifying Party fails to grant the
Indemnified Party with the indemnity requested, the Indemnified Party may seek
to enforce this provision in accordance with Section 8.05.

 

(b)           In
the event such claim involves a claim by a third Person against the Indemnified
Party, the Indemnifying Party shall have 30 days after receipt of such notice
to decide whether it will undertake, conduct and control, through counsel of
its own choosing and at its own expense, the settlement or defense thereof, and
if it so decides, the Indemnified Party shall cooperate with it in connection
therewith; provided, however, that the Indemnifying Party may so undertake,
conduct and control the settlement or defense thereof only if it acknowledges
in writing its indemnification obligations hereunder and the Indemnified Party
may participate (subject to the Indemnifying Party’s control) in such
settlement or defense through counsel chosen by it; provided, further that the
fees and expenses of such Indemnified Party’s counsel shall be borne by the
Indemnified Party. If the defendants in any action include the Indemnified
Party and the Indemnifying Party, and the Indemnified Party shall have been
advised by its counsel in writing that there are legal defenses available to
the Indemnified Party which are materially different from or in addition to
those available to the Indemnifying Party, the Indemnified Party shall have the
right to employ its own counsel in such action, and, in such event, the
reasonable fees and expenses of such counsel shall be borne by the Indemnifying
Party. The Indemnifying Party may, without the consent of the Indemnified
Party, settle or compromise or consent to the entry of any judgment in any
action involving only the payment of money (A) which includes as an
unconditional term thereof the delivery by the claimant or plaintiff to the
Indemnified Party of a duly executed written release of the Indemnified Party
from all Liability in respect of such action which written release shall be
reasonably satisfactory in form and substance to the Indemnified Party and (B)
if there is no finding or admission of any violation of law or any violation of
any Person and no effect on any other claims that may be made against the
Indemnified Party. The Indemnifying Party shall not, without the written
consent of the Indemnified Party, settle or compromise any action involving
relief other than the payment of money in any manner that, in the reasonable
judgment of the Indemnified Party, would materially and adversely affect the Indemnified
Party; provided, however, that if the Indemnified Party shall fail or refuse to
consent to a settlement, compromise or judgment proposed by the Indemnifying
Party and approved by the third Person in any such action and a judgment
thereafter shall be entered or a settlement or compromise thereafter shall be
effected on terms less favorable in the aggregate to the Indemnified Party than
the settlement, compromise or judgment proposed by the Indemnifying Party and
approved by the third Person on such action, the Indemnifying Party shall have
no Liability hereunder with respect to any claim or loss in excess of those
that were provided for in such settlement, compromise or judgment so proposed
by the Indemnifying Party or any costs or expenses related to such claim
arising after the date such settlement, compromise or judgment was so proposed.
So long as the Indemnifying Party is diligently contesting any such claim in
good faith, the Indemnified Party shall not pay or settle any such claim,
unless such settlement includes as an unconditional term thereof the delivery
by 

 

33

 

the claimant or plaintiff and by the Indemnified Party
to the Indemnifying Party of duly executed written releases of the Indemnifying
Party from all Liability in respect of such claim which written releases shall
be reasonably satisfactory in form and substance to the Indemnifying Party.

 

The
Indemnified Party shall cooperate fully in all aspects of any investigation,
defense, pre-trial activities, trial, compromise, settlement or discharge of
any claim in respect of which indemnification is sought pursuant to this
Section 7.02. If the Indemnifying Party does not notify the Indemnified
Party, within 30 days after the receipt of the Indemnified Party’s notice of a
claim of indemnity hereunder, that it elects to undertake the defense thereof
or does not acknowledge its indemnification obligations with respect thereto,
the Indemnified Party shall have the right to contest, settle or compromise the
claim, but shall not thereby waive any right to indemnity therefor pursuant to
this Agreement.

 

(c)           The Indemnified Party
shall cooperate with the Indemnifying Party in pursuing reasonable remedies
against third parties, including any insurance carrier or potential indemnitor,
other than the Indemnifying Party, to recover any claim or loss against the
Indemnified Party; provided, however, the Indemnified Party shall only be
required to initiate litigation or other formal claims procedure to seek remedies
against such third parties when requested by the Indemnifying Party in the
exercise of reasonable business judgment; provided, further, the Company shall
only be required to participate as a party claimant against any of its
customers where its participation is reasonably necessary to assure recovery of
a claim or loss that the Company has demanded that IBR is obligated to pay. All
costs incurred by the Indemnified Party in pursuing such remedies at the
request of the Indemnifying Party shall be borne by the Indemnifying Party. The
Indemnifying Party shall not delay any payments due and owing the Indemnified
Party under this Article 7 while claims are being pursued against any
third parties under this Section 7.02.

 

Section 7.03           Exclusive Remedies.

 

OTHER THAN
PURSUANT TO THE TERMS OF SECTIONS 4.07 AND 4.08, THE INDEMNIFICATION PROVISIONS
IN THIS ARTICLE VII SHALL BE THE SOLE AND EXCLUSIVE REMEDIES OF THE PARTIES FOR
THE BREACH OF ANY REPRESENTATION OR WARRANTY IN THIS AGREEMENT AND FOR THE
NON-PERFORMANCE OF ANY COVENANT AND AGREEMENT IN THIS AGREEMENT (ABSENT ACTUAL
FRAUD). FOR THE CONSIDERATION PROVIDED HEREIN EACH PARTY HEREBY COVENANTS AND
AGREES NOT TO SUE ANY OTHER PARTY UPON ANY CLAIM, DEMAND, OR CAUSE OF ACTION
RELATING TO THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY CLAIM OR CAUSE
OF ACTION FOR INDEMNITY OR CONTRIBUTION, ON ANY BASIS OTHER THAN PERMITTED
UNDER THE TERMS PROVIDED IN THIS ARTICLE VII (OTHER THAN A CLAIM BASED ON
ACTUAL FRAUD).

 

ARTICLE VIII

 

MISCELLANEOUS

 

Section 8.01           Consent to
Assignment.

 

This Agreement
and all of the provisions hereof shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and permitted assigns,
and it is not 

 

34

 

intended to
confer upon any other person any rights or remedies hereunder. Neither this
Agreement nor any of the rights, interests or obligations hereunder may be
assigned by any of the parties without the prior written consent of the other
party hereto, except that each party may at any time assign any or all of its
rights or obligations hereunder to one of its wholly owned subsidiaries (but no
such assignment shall relieve such party of any obligations under this
Agreement). Notwithstanding the foregoing, the Company may assign this
Agreement and any or all rights or obligations hereunder to (i) any
Affiliate of the Company provided that any such Affiliate becomes a party to
this Agreement, (ii) any lender of the Company as collateral security or
(iii) any successor in interest to the Company; provided that any such
successor becomes a party to this Agreement; provided that no assignment under
(i), (ii) or (iii) above shall relieve the Company from any
obligation hereunder. Any IBR Party may assign this Agreement and any or all
rights or obligations hereunder to (i) any Permitted Transferee, provided
that any such Permitted Transferee becomes a party to this Agreement or
(ii) any successor in interest to such IBR Party, provided that any such
successor becomes a party to this Agreement; provided that no assignment under
(i) or (ii) above shall relieve IBR from any obligation hereunder. Talecris
LLC may assign this Agreement and any or all rights or obligations hereunder to
(i) any Affiliate of Talecris LLC to which Talecris LLC transfers Shares
in accordance with this Agreement, provided that any such Affiliate becomes a
party to this Agreement, and (ii) any successor in interest to Talecris
LLC provided that any such assignee becomes a party to this Agreement; provided
that no assignment under (i) or (ii) above shall relieve Talecris LLC
from any obligation hereunder. Any purported assignment in contravention of
this Section 8.01 shall be void.

 

Section 8.02           Entire Agreement and
Amendments.

 

This Agreement
constitutes the entire agreement among the parties, and merges and supersedes
all previous agreements and understandings among the parties, whether oral or
written, relating to the subject matter hereof. No amendment, modification or
interpretation of this Agreement will have any effect unless it is reduced to
writing, makes specific reference to this Agreement and is signed by all of the
parties.

 

Section 8.03           Notices.

 

All notices,
requests, demands and other communications required or permitted hereunder
shall be in writing and if mailed by prepaid first-class mail or certified
mail, return receipt requested, at any time other than during a general
discontinuance of postal service due to strike, lockout or otherwise, shall be
deemed to have been received on the earlier of the date shown on the receipt or
three Business Days after the postmarked date thereof and, if telexed or
telecopied, the original notice shall be mailed by prepaid first class mail
within twenty-four (24) hours after sending such notice by telex or telecopy,
and shall be deemed to have been received on the next Business Day following
dispatch and acknowledgment of receipt by the recipient’s telex or telecopy
machine. In addition, notices hereunder may be delivered by hand, in which event
the notice shall be deemed effective when delivered, or by overnight courier,
in which event the notice shall be deemed to have been received on the next
Business Day following delivery to such courier. All notices and other
communications under this Agreement shall be given to the parties hereto at the
following addresses:

 

If to the Company or
Talecris LLC:

 

Talecris Biotherapeutics
Holdings Corp.

 

35

 

PO Box 110526

4101 Research Commons

79 T.W. Alexander Drive

Research Triangle Park

North Carolina, USA 27709

Fax: (919) 316-6669

Attention: General Counsel

 

Copy to:

 

Reed Smith LLP

599 Lexington
Avenue

29th Floor

New York, NY
10022

Fax:  (212) 521-5450

Attention:
David M. Grimes, Esq.

 

If to the IBR
Parties:

 

International
BioResources, L.L.C.

1100
Camellia Boulevard

Suite
201

Lafayette,
Louisiana 70508

Fax:  (337) 216-6644

Attention:  Rodney Savoy

 

and

 

Fulbright
& Jaworski L.L.P.

666
Fifth Avenue

New
York, New York 10103

Fax:  (212) 318-3400

Attention:  Neil Gold, Esq.

 

Any party
hereto may change its address specified for notices herein by designating a new
address by notice in accordance with this Section 8.03.

 

Section 8.04           Non-Waiver.

 

The waiver by
any party of any breach of any term, covenant, condition or agreement contained
herein or any default in the performance of any obligations hereunder shall not
be deemed to be a waiver of any other breach or default of the same or of any
other term, covenant, condition, agreement or obligation.

 

Section 8.05           Governing
Law, Jurisdiction.

 

(a)           This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of Delaware, without regard to conflict of laws principles.

 

(b)           Each
of the parties hereto hereby irrevocably and unconditionally submits, for
itself and its property, to the jurisdiction of any Delaware State court or
federal court of the 

 

36

 

United States of America sitting in Delaware, and any
appellate court thereof, in any action or proceeding arising out of or relating
to this Agreement, or for recognition or enforcement of any judgment, and each
of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined
in any such Delaware State court or, to the extent permitted by law, in such
federal court. Each of the parties agrees that any action or proceeding arising
out of or relating to this Agreement that is subject to the jurisdiction of the
Delaware Superior Court rather than the Delaware Chancery Court shall be
conducted by summary proceedings.

 

Section 8.06           Captions.

 

All captions
are inserted for convenience only, and will not affect any construction or
interpretation of this Agreement.

 

Section 8.07           Severability.

 

Any provision
of this Agreement which is or may become prohibited or unenforceable, as a
matter of law or regulation, will be ineffective only to the extent of such
prohibition or unenforceability and shall not invalidate the remaining
provisions hereof if the essential purposes of this Agreement may be given
effect despite the prohibition or unenforceability of the affected provision.

 

Section 8.08           Set-Off.

 

No party to
this Agreement shall have any right of set off with respect to amounts it has
an obligation to pay hereunder.

 

Section 8.09           Counterparts.

 

This Agreement
may be executed in one or more counterparts, each of which shall be deemed to
be an original, and all of which together shall be deemed to be one and the
same instrument.

 

Section 8.10           Recapitalizations,
Exchanges, Etc. Affecting Common Stock.

 

Except as
otherwise provided in this Agreement, the provisions of this Agreement shall
apply to any and all shares of capital stock or other securities of the Company
or any successor or assign of the Company (whether by merger, consolidation,
sale of assets, transfer of Equity Interests or otherwise) which may be issued
in respect of, in exchange for, or in substitution of, any Shares by reason of
any reorganization, recapitalization, reclassification, merger, consolidation,
partial or complete liquidation, sale of assets, spin-off, stock dividend,
split, distribution to stockholders or combination of the Shares or any other
change in the Company’s capital structure, in order to preserve fairly and
equitably as far as practicable, the original rights and obligations of the
parties hereto under this Agreement.

 

37

 

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

 

	
   

  	
  TALECRIS BIOTHERAPEUTICS HOLDINGS

  CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lawrence D. Stern

  
	
   

  	
   

  	
  Lawrence D.
  Stern

  
	
   

  	
   

  	
  Executive
  Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TALECRIS
  HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ERIC
  EPSTEIN

  
	
   

  	
   

  	
  Name:

  	
   Eric Epstein

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INTERNATIONAL BIORESOURCES, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RODNEY
  L. SAVOY

  
	
   

  	
   

  	
  Name:

  	
  Rodney L.
  Savoy

  
	
   

  	
   

  	
  Title:

  	
  CEO

  

 

 

COUNTERPART
SIGNATURE PAGE TO

STOCKHOLDERS
AGREEMENT

OF
TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

 

 

	
   

  	
  STOCKHOLDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (For Stockholder that is a corporation, partnership 

  or other entity)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Print Name
  of Stockholder)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature
  of Authorized Person)

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (For Stockholder that is a natural person)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Print Name:

  
					

 

 

SCHEDULE I

 

CAPITALIZATION OF THE COMPANY

 

1

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