Document:

Exhibit 10.6

 

TALECRIS
BIOTHERAPEUTICS HOLDINGS CORP.

INCENTIVE PLAN

 

Section 1.                                          Purposes. The purpose of the Talecris Biotherapeutics
Holdings Corp. Incentive Plan (the “Plan”)
is to attract, retain and motivate selected employees of Talecris Biotherapeutics
Holding Corp. (the “Company”) in
order to promote the Company’s long-term growth and profitability.

 

Section 2.                                          Administration.

 

(a)                                  Subject to Section 2(d), the Plan shall
be administered by a committee (the “Committee”)
appointed by the Board of Directors of the Company (the “Board”), whose members shall serve at the
pleasure of the Board. The Committee at all times is intended to be composed of
at least two directors of the Company, each of whom is a “non-employee director”
within the meaning of Rule 16b-3 promulgated under the Securities Exchange Act
of 1934, as amended. Unless otherwise determined by the Board, the Committee
shall be the Compensation Committee of the Board.

 

(b)                                  The Committee shall have complete control
over the administration of the Plan, and shall have the authority in its sole
and absolute discretion to: (i) exercise all of the powers granted to it under
the Plan; (ii) construe, interpret and implement the Plan; (iii) prescribe,
amend and rescind rules and regulations relating to the Plan, including rules
and regulations governing its own operations; (iv) make all determinations
necessary or advisable in administering the Plan (including, without
limitation, calculating the amount of the Bonus payable to each Participant (as
defined in Section 4(a)); (v) correct any defect, supply any omission and
reconcile any inconsistency in the Plan; and (vi) amend the Plan to reflect
changes in or interpretations of applicable law, rules or regulations.

 

(c)                                  The determination by the Committee on all
matters relating to the Plan and any amounts payable thereunder shall be final,
binding and conclusive on all parties.

 

(d)                                  Notwithstanding anything to the contrary
contained herein, the Committee may allocate among its members and may delegate
some or all of its authority or administrative responsibility to such
individual or individuals who are not members of the Committee as it shall deem
necessary or appropriate.

 

(e)                                  No member of the Board or the Committee
or any employee of the Company or any of its subsidiaries or affiliates (each
such person a “Covered Person”)
shall have any liability to any person (including, without limitation, any
Participant) for any action taken or omitted to be taken or any determination
made in good faith with respect to the Plan or any Bonus. Each Covered Person
shall be indemnified and held harmless by the Company against and from any
loss, cost, liability or expense (including attorneys’ fees) that may be
imposed upon or incurred by such Covered Person in connection with or resulting
from any action, suit or proceeding to which such Covered

 

 

Person may be a
party or in which such Covered Person may be involved by reason of any action
taken or omitted to be taken under the Plan and against and from any and all
amounts paid by such Covered Person, with the Company’s approval, in settlement
thereof, or paid by such Covered Person in satisfaction of any judgment in any
such action, suit or proceeding against such Covered Person, provided that the
Company shall have the right, at its own expense, to assume and defend any such
action, suit or proceeding and, once the Company gives notice of its intent to
assume the defense, the Company shall have sole control over such defense with
counsel of the Company’s choice. The foregoing right of indemnification shall
not be available to a Covered Person to the extent that a court of competent
jurisdiction in a final judgment or other final adjudication, in either case,
not subject to further appeal, determines that the acts or omissions of such
Covered Person giving rise to the indemnification claim resulted from such
Covered Person’s bad faith, fraud or willful criminal act or omission. The
foregoing right of indemnification shall not be exclusive of any other rights
of indemnification to which Covered Persons may be entitled under the Company’s
Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or
any other power that the Company may have to indemnify such persons or hold
them harmless.

 

(f)                                    Notwithstanding anything to the contrary
contained herein: (i) until the Board shall appoint the members of the
Committee, the Plan shall be administered by the Board and (ii) the Board may,
in its sole discretion, at any time and from time to time, grant Awards or
resolve to administer the Plan. In either of the foregoing events, the Board
shall have all of the authority and responsibility granted to the Committee
herein.

 

Section 3.                                          Performance
Period. The Plan shall operate for successive calendar
years or portions of a fiscal year periods as determined by the Committee (each
a “Performance Period”).

 

Section 4.                                          Participation.

 

(a)                                  Prior to the beginning of a Performance
Period, or as otherwise determined by the Committee (the “Participation Date”), the Committee shall
designate those individuals who shall participate in the Plan for the
Performance Period (the “Participants”).

 

(b)                                  Except as provided below, the Committee
shall have the authority at any time (i) during the Performance Period to
remove Participants from the Plan for that Performance Period and (ii) prior to
the Participation Date (or later in a manner determined by the Committee) to
add Participants to the Plan for a particular Performance Period.

 

Section 5.                                          Bonus
Amounts.

 

(a)                                  The Committee shall establish, subject to
Board approval, the targeted level or levels of financial performance and/or
strategic goals (“Performance Goals”) to be used in
assessing the performance of a Participant during the Performance Period.

 

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(b)                                  The pool of funds available for Bonuses relating
to a given Performance Period (“Eligible Bonus Pool”)
shall be equal to the sum of all Bonuses that would be made to Participants if
the Performance Goals were achieved at a level of 100% (“Target”)
for that Performance Period. The Committee may, in its sole discretion,
increase the amount of the Eligible Bonus Pool for a given Performance Period where
the level of achievement of the Performance Goals exceeds Target in such
Performance Period.

 

(c)                                  The Committee shall determine the amount
of any Bonus to be awarded to a Participant based on (i) the level of achievement
of the Performance Goals for that Performance Period, and (ii) the Committee’s
assessment of the Participant’s individual performance during the Performance
Period.

 

Section 6.                                          Payment
of Bonus Amount.

 

(a)                                  Payment of Bonus.                                         Each Participant’s Bonus shall be payable
by the Company in the following manner: (i) 60% of the Bonus shall be paid in a
lump sum in cash during the fiscal year following the Performance Period at
such time as bonuses are generally paid by the Company, but in no case later
than May 1 of such fiscal year, (ii) 40 % of the Bonus shall be paid in a lump
sum in cash during the second fiscal year following the Performance Period at
such time as bonuses are generally paid by the Company, but in no case later
than May 1 of such fiscal year.

 

(b)                                  Employment at time of
payment.              Unless otherwise determined by the
Committee in its discretion, a Participant is eligible to receive payment of
the Bonus only if the following conditions are met on the date of the payment
of the relevant installment of the Bonus described in Section 6(a): (i)
Participant is employed by the Company or an affiliate that was approved by the
Committee, and (ii) Participant’s performance of the duties and
responsibilities of his or her position is determined, in the good faith
discretion of the Company, to be satisfactory.

 

(c)                                  Change of Control.                                      In the event of a Change of Control (as
defined below), either: (i) the Company shall cause the acquirer to assume the
obligations of the Company under the Plan or to establish a substantially
similar plan (“Assumption of the Plan”), or (ii)
if there is no Assumption of the Plan, each Participant shall be entitled to
receive a pro-rata Bonus for the Performance Period during which the Change of
Control occurs. The amount of such pro-rata Bonus shall be determined by the
Committee, in its sole discretion.

 

(1)                                  For the purposes of this section, Change of Control means, the occurrence of any one of the
following events:

 

(a)                                  any Person, other than a Permitted
Investor, is or becomes a “beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company
representing (A) more than 30% of the total

 

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voting power of
the Company’s then outstanding securities generally eligible to vote for the
election of directors (the “Company Voting Securities”),
and (B) a greater percentage of the then outstanding Company Voting Securities
that are then held by all the Permitted Investors in the aggregate; provided,
however, that any of the following acquisitions shall not be deemed to be a
Change in Control:  (1) by the Company or
any subsidiary or affiliate, (2) by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any subsidiary or affiliate,
(3) by any underwriter temporarily holding securities pursuant to an offering
of such securities, or (4) pursuant to a Non-Qualifying Transaction (as defined
in paragraph (ii));

 

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

 

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

 

(ii)                                  no Person, other than a Permitted
Investor or an employee benefit plan (or any related trust) sponsored or
maintained by the Surviving Corporation or the Parent Corporation, is or
becomes the beneficial owner, directly or indirectly,

 

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of securities of the
Parent Corporation (or, if there is no Parent Corporation, the Surviving
Corporation) representing (A) 30% of the total voting power of the securities
then outstanding generally eligible to vote for the election of directors of
the Parent Corporation (or the Surviving Corporation) (the “Parent Voting
Securities”), and (B) a greater percentage of the then outstanding Parent
Voting Securities that are then held by all the Permitted Investors in the
aggregate, and

 

(iii)                               at least a majority of the members of the board of
directors of the Parent Corporation (or, if there is no Parent Corporation, the
Surviving Corporation) following the consummation of the Business Combination
were Incumbent Directors at the time of the Board’s approval of the execution
of the initial agreement providing for such Business Combination;

 

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

 

(c)                                  the shareholders of the Company approve a
plan of complete liquidation or dissolution of the Company; or

 

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

 

For the purposes of this Plan, “Permitted
Investor” means Talecris Holdings, LLC, Cerberus-Plasma Holdings LLC
and Ampersand 2001 Limited Partnership LP or any of their respective affiliates
or other affilitates of Cerberus Capital Management, L.P.

 

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

 

5

 

Section 7.                                          General
Provisions.

 

(a)                                  Amendment,
Termination, etc. The Board reserves the right at any time and from time to time to
modify, alter, amend, suspend, discontinue or terminate the Plan, including in
any manner that adversely affects the rights of Participants.

 

(b)                                  Nonassignability.
No rights of
any Participant (or of any beneficiary pursuant to this Section 7(b)) under the
Plan may be sold, exchanged, transferred, assigned, pledged, hypothecated or
otherwise disposed of (including through the use of any cash-settled
instrument), either voluntarily or involuntarily by operation of law, other
than by will or by the laws of descent and distribution. Any sale, exchange,
transfer, assignment, pledge, hypothecation or other disposition in violation
of the provisions of this Section 7(b) shall be void. In the event of a
Participant’s death, any amounts payable under the Plan shall be paid in
accordance with the Plan to a Participant’s estate. A Participant’s estate
shall have no rights under the Plan to receive such amounts, if any, as may be
payable under this Section 7(b), and all of the terms of this Plan shall be
binding upon any such Participant’s estate.

 

(c)                                  Plan
Creates No Employment Rights. Nothing in the Plan shall confer upon any
Participant the right to continue in the employ of the Company for the
Performance Period or thereafter or affect any right which the Company may have
to terminate such employment.

 

(d)                                  Waiver
of Jury Trial. To the extent permitted by law, the Participants and the Company waive
any and all rights to a jury trial with respect to any matters arising under
this Plan.

 

(e)                                  Governing
Law. All rights and obligations under the
Plan shall be governed by and construed in accordance with the laws of the
State of Delaware without regard to principles of conflict of laws.

 

(f)                                    Tax
Withholding. In
connection with any payments to a Participant or other event under the Plan
that gives rise to a federal, state, local or other tax withholding obligation
relating to the Plan (including, without limitation, FICA tax), (i) the Company
and any Participating Employer may deduct or withhold (or cause to be deducted
or withheld) from any payment or distribution to such Participant whether or
not pursuant to the Plan or (ii) the Committee shall be entitled to
require that such Participant remit cash (through payroll deduction or
otherwise), in each case in an amount sufficient in the opinion of the Company
to satisfy such withholding obligation.

 

(g)                                 Right
of Offset. The
Company and any Participating Employer shall have the right to offset against
the obligation to pay a Bonus to any Participant, any outstanding amounts (including,
without limitation, travel and entertainment or advance account balances, loans
or amounts repayable to it pursuant to tax equalization, housing, automobile or
other employee programs) such Participant then owes to it.

 

(h)                                 Severability;
Entire Agreement.
If any of the provisions of this Plan is finally held to be invalid, illegal or
unenforceable (whether in whole or in part), such

 

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provision shall be
deemed modified to the extent, but only to the extent, of such invalidity,
illegality or unenforceability and the remaining provisions shall not be
affected thereby. This Plan shall not supersede any other agreement, written or
oral, pertaining to the matters covered herein, except to the extent of any
inconsistency between this Plan and any prior agreement, in which case this
Plan shall prevail.

 

(i)                                    No
Third Party Beneficiaries. The Plan shall not confer on any person other than
the Company and any Participant any rights or remedies hereunder.

 

(j)                                    Successors
and Assigns. The
terms of this Plan shall be binding upon and inure to the benefit of the
Company and its successors and assigns and each permitted successor or assign
of each Participant as provided in Section 7(b).

 

(k)                                Plan
Headings. The
headings in this Plan are for the purpose of convenience only and are not
intended to define or limit the construction of the provisions hereof.

 

(l)                                    Construction. In the construction of this Plan, the
singular shall include the plural, and vice versa, in all cases where such
meanings would be appropriate. Nothing in this Plan shall preclude or limit the
ability of the Company, its subsidiaries and affiliates to pay any compensation
to a Participant under any other plan or compensatory arrangement whether or not
in effect on the date this Plan was adopted.

 

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IN WITNESS WHEREOF, and as evidence of the adoption of
this Plan effective as of                  ,
2005, by the Company, it has caused the same to be signed by its duly
authorized officer this                
day of                   ,
2005.

 

 

	
   

  	
  TALECRIS
  BIOTHERAPEUTICS HOLDINGS

  
	
   

  	
  CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Lawrence D. Stern

  	
   

  
	
   

  	
  Name:  Lawrence D. Stern

  
	
   

  	
  Title:

  

 

8

 

AMENDMENT TO THE TALECRIS BIOTHERAPEUTICS HOLDINGS 

CORP.

INCENTIVE PLAN (THE “PLAN”)

 

(as adopted by
the Compensation Committee of the Talecris Biotherapeutics Holdings Corp. Board
of Directors on February 13, 2007)

 

Section 5(b)
of the Plan is amended to read as follows:

 

The pool of
funds available for Bonuses relating to a given Performance Period (“Eligible
Bonus Pool”) shall be equal to the sum of all Bonuses that would be made to
Participants at the end of the Performance Period if the Performance Goals were
achieved at a level of 100% (“Target”) for that Performance Period. In the
event that a Participant does not receive a Bonus (or a severance payment in
lieu of a Bonus) by reason of Section 6(b), then the forfeited funds will be
reallocated to the Eligible Bonus Pool. The Committee may, in its sole
discretion, increase the amount of the Eligible Bonus Pool for a given
Performance Period where the level of achievement of the Performance goals
exceeds Target in such Performance Period.

 

9Exhibit 10.7.1

 

TALECRIS BIOTHERAPEUTICS HOLDINGS
CORP.

 

2005 STOCK OPTION AND INCENTIVE
PLAN

 

STOCK OPTION AWARD AGREEMENT

 

This Stock Option Award Agreement (this “Option Award Agreement”) is
effective as of November 10, 2005 (the “Grant Date”), by and between Talecris
Biotherapeutics Holdings Corp. a Delaware corporation (the “Company”), and the grantee named on
the signature page hereof (the “Grantee”)
pursuant to the Talecris Biotherapeutics
Holdings Corp. 2005 Stock Option and Incentive Plan (the “Plan”). Capitalized terms not
defined in this Option Award Agreement have the meanings ascribed to them in
the Plan.

 

1.                                      Grant
of Stock Option. Pursuant to the terms and conditions set forth in
Schedule A hereto, this Option Award Agreement and the Plan, the Company hereby
grants to the Grantee an option to purchase (“Option”) all or any part of the
aggregate of the shares of the Company’s Common Stock (the “Shares”) set forth in Schedule A
hereto at a purchase price per Share as set forth in Schedule A hereto (the “Option Exercise Price”). If an executed copy of this Option Award Agreement is not returned to
the Company within ten business days after the date hereof, the grant of
Options hereunder shall be null and void, unless the Company determines, in its
sole discretion, that any delay was for good cause. This Option is
intended to be a non-qualified stock option, and is not intended to qualify as
an Incentive Stock Option.

 

2.                                      Term
of Option. This Option shall expire on the tenth (10) anniversary of
the Grant Date (the “Expiration Date”)
and must be exercised, if at all, on or before the earlier of the Expiration
Date or the date on which this Option is earlier terminated in accordance with
the provisions of Section 4 of this Option Award Agreement.

 

3.                                      Vesting.

 

3.1                                 Performance-Based
Vesting. The Grantee shall vest in the specified number of Options subject
to performance-based objectives as set forth in Schedule A hereto subject to
this Section 3.1 (“Performance-Based Options”). The Performance-Based
Options will vest and become exercisable based on the achievement of the
Company’s annual performance objectives for each of the five fiscal years
following the Grant Date (“Annual Objectives”)
as established each year by the Board of Directors (“Board”) provided, however,
that if Grantee is hired after January 1st, 2006, then in a fiscal
year where the Annual Objectives are met, the portion of the Performance-Based
Options allocated to the fiscal year in which Grantee was hired shall vest on a
pro-rata basis for such part of the year that Grantee was actively employed.
Annual Objectives for fiscal year 2005 are set forth in Annex A hereto. Annual
Objectives shall normally be based upon achievement of budgeted EBITDA and Free
Cash Flow for the fiscal year.  

 

 

(a)                                  Annual
Objectives. For a given fiscal year, where the Annual Objectives are met,
the portion of the Performance-Based Options allocated to such fiscal year
shall vest on April 1st of the subsequent fiscal year, provided
that no Termination of Employment of the Grantee (other than voluntary
termination at age 65 or older (“Retirement”),
death or Disability) has occurred prior to April 1st of such
subsequent fiscal year. In the event of death, Disability or Retirement, for a
given fiscal year where the Annual Objectives are met, the portion of the
Performance-Based Options allocated to the fiscal year in which such event
occurs shall vest on a pro-rata basis for such part of that year that the
Grantee is actively employed. Where the Annual Objectives for such fiscal year
are not met, the portion of the Performance-Based Options allocated to such
fiscal year shall be forfeited, unless the Board in its sole discretion
determines that all or a portion of the Performance-Based Option allocated to
such fiscal year shall vest upon meeting further conditions as defined by the
Board.

 

(b)                                 Determination
by Board. The Board shall, in its sole discretion, determine whether the
Annual Objectives have been met or exceeded.

 

(c)                                  Adjustments
to Annual Objectives. The Board may, in its sole discretion, make
appropriate adjustments to Annual Objectives for changes in, or in the timing
of, major capital growth projects, acquisitions, mergers and joint ventures,
and quality of earnings adjustments, or other such factors as determined in
good faith by the Board.

 

3.2                                 Time-Based
Vesting. The Grantee shall vest in the specified number of Options based on
Grantee’s tenure as set forth in Schedule A hereto subject to this Section 3.2
(“Time-Based Options”). Time-Based Options shall vest and become exercisable in
equal installments on April 1, 2006 and the subsequent four anniversaries of
that date thereafter. Options shall be exercisable only to the extent that
vesting occurred prior to the Grantee’s Termination of Employment. In the event
of death, Disability or Retirement, the Time-Based Options for the year
(defined for the purpose of time based vesting from April 1st to
March 31st) in which such event occurs shall vest on a pro-rata
basis for such part of that year that the Grantee is actively employed.

 

3.3                                 Accelerated
Vesting on a Change in Control. Upon the effectiveness of a Change in
Control if the Permitted Investors receive an internal rate of return on the
amounts such Permitted Investors have invested in, loaned to and contributed to
the Company (together the “Invested Capital”), compounded annually, of the
greater of at least 30% or two times the Invested Capital, then as provided in
Section 3.6 of the Plan (i) any stock options granted under the Plan shall
become fully vested and immediately exercisable, and (ii) any performance
goals applicable to Awards will be deemed to be fully satisfied and immediately
exercisable, provided, however, that no Termination of Employment has taken
place prior to the effective date of such Change in

 

2

 

Control
(hereinafter referenced as “Accelerated Vesting”). If, however, upon the
effectiveness of a Change in Control the Permitted Investors have not
received an internal rate of return on the Invested Capital, compounded
annually, of the greater of at least 30% or two (2) times the Invested Capital,
than Accelerated Vesting shall only take place to the extent the surviving
entity does not assume the provisions of the Plan or make provision for the
Grantee to participate in a stock option or similar equity incentive plan with
terms that, taken as a whole, are (as determined by the Board in its sole
discretion) not materially less favorable to the Grantee than the Plan

 

3.4                                 Non-Vested
Options.                               This
Option shall be exercisable to the extent (and only to the extent) that it has
vested. Except for certain portions of this Option that may, following
Termination of Employment because of death, Disability or Retirement, vest on a
pro-rata basis pursuant to Sections 3.1(a) and 3.2 of this Agreement, this
Option shall cease to vest upon Grantee’s Termination of Employment, and may be
exercised after Grantee’s date of Termination of Employment only as set forth
in Section 4 below. Any portion of this Option that does not vest, whether due
to Termination of Employment, lack of achievement of performance objectives, or
otherwise, will not be exercisable and will be forfeited.

 

4.                                      Exercise
of Options Following Termination of Employment.

 

4.1                                 Termination
of Employment as a Result of Voluntary Resignation or for Any Reason Other than
Death, Disability, Retirement or Cause. Upon Grantee’s Termination of
Employment as a result of voluntary resignation or for any reason other
than death, Disability, Retirement or Cause, this Option, to the extent (and
only to the extent) that it is vested on the date of Termination of Employment,
may be exercised by Grantee no later than 90 days after the date of such
Termination of Employment, but in no event later than the Expiration Date.

 

4.2                                 Termination
of Employment Because of Death, Disability or Retirement. Upon Grantee’s
Termination of Employment because of death, Disability or Retirement (or upon
Grantee’s death within ninety (90) days after Termination of Employment because
of Disability or Retirement), this Option, to the extent (and only to the
extent) that it is vested on the date of employment termination, may be
exercised by Grantee (or Grantee’s legal representative or authorized assignee)
no later than twelve (12) months after the date of such Termination of
Employment, but in no event later than the Expiration Date. To the extent (and
only to the extent) that certain portions of this Option vest following
Termination of Employment because of death, Disability or Retirement on a
pro-rata basis pursuant to Sections 3.1(a) and 3.2 of this Agreement, such
pro-rata portions of this Option may be exercised by Grantee (or Grantee’s
legal representative or authorized assignee) no later than twelve (12) months
after the date that such pro-rata portions vest, but in no event later than the
Expiration Date.

 

4.3                                 Termination
of Employment for Cause. Upon Grantee’s Termination of Employment by the
Company for Cause, all unexercised Options granted

 

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to Grantee shall
immediately terminate and this Option will expire and terminate on the date of
such Termination of Employment or at such earlier date determined by the
Committee.

 

5.                                      Exercise
and Restriction.

 

5.1                                 Stock
Option Exercise Agreement. To exercise this Option, Grantee (or in the case
of exercise after Grantee’s death, Grantee’s executor, administrator, heir or
legatee, as the case may be) must deliver to the Company an executed stock
option exercise agreement in the form attached hereto as Exhibit A, or
in such other form as may be required by the Company from time to time (the “Exercise Agreement”), which shall
set forth, inter  alia, Grantee’s election to exercise this
Option, the number of Shares being purchased, any restrictions imposed on the
Shares and any representations, warranties and agreements regarding Grantee’s
investment intent and access to information as may be required by the Company
to comply with applicable securities laws. If a person other than Grantee
exercises this Option, then such person must submit documentation reasonably
acceptable to the Company that such person has the right to exercise this
Option.

 

5.2                                 Limitations
on Exercise. This Option may not be exercised unless such exercise is in
compliance, to the reasonable satisfaction of the Committee, with all
applicable federal and state securities laws, as they are in effect on the date
of exercise. This Option may not be exercised as to fewer than 100 Shares
unless it is exercised as to all Shares as to which this Option is then
exercisable.

 

5.3                                 Payment.
The Exercise Agreement shall be accompanied by full payment for the Shares
being purchased (the “Exercise Price”)
in cash (by check), or, if authorized by the Committee in its sole discretion,
the Company may accept payment (i) in outstanding shares of stock, or (ii) by
delivery of an unconditional and irrevocable undertaking by a broker to deliver
promptly to the Company sufficient funds to pay the exercise price.

 

5.4                                 Tax
Withholding. Prior to the issuance of the Shares upon exercise of this
Option, Grantee must pay any applicable federal or state withholding
obligations of the Company.

 

5.5                                 Issuance
of Shares. As promptly as is practicable after the receipt of the Exercise
Agreement, in form and substance satisfactory to counsel for the Company,
payment of the Exercise Price and satisfaction of applicable withholding
requirements, and execution by the Grantee of the Stockholders Agreement
attached hereto as Exhibit B, the Company shall issue the Shares registered
in the name of Grantee, Grantee’s authorized assignee, or Grantee’s legal
representative, and shall deliver certificates representing the Shares with the
appropriate legends affixed thereto. The Company may postpone such delivery
until it receives satisfactory proof that the issuance of such Shares will not
violate any of the provisions of the Securities Act of

 

4

 

1933, as amended
(the “Securities Act”), or the
Securities Exchange Act of 1934, as amended, any rules or regulations of the
Securities and Exchange Commission promulgated thereunder, or the requirements
of applicable state law relating to authorization, issuance or sale of
securities, or until there has been compliance with the provisions of such acts
or rules. Grantee understands that the Company is under no obligation to
register or qualify the Shares with the SEC, any state securities commission or
any stock exchange to effect such compliance.

 

5.6                                 Competitive
or Detrimental Activity. If at any time within eighteen months after the
date on which the Grantee exercises the Option: 
(a) there is a Termination of Employment for Cause (or, if still
employed by the Company, Grantee engages in any activity that would constitute
a basis for a Termination of Employment for Cause); or (b) Grantee engages
in any activity determined in the sole discretion of the Company to be in
violation of any non-competition agreement or covenant between the Grantee and
the Company (or any Related Entity), then any gain realized by Grantee from the
exercise of the Option (“Gain”)
shall be paid by Grantee to the Company upon notice from the Company. Such Gain
shall be determined as of the date of the Option exercise as the difference
between the aggregate exercise price of such Shares and the Fair Market Value
of such Shares on their respective Option exercise dates without regard to any
subsequent change in the Fair Market Value of a Share.

 

6.                                      Nontransferability
of Option. This Option may not be sold, assigned, pledged,
hypothecated, loaned or otherwise transferred in any manner other than by will
or by the laws of descent and distribution and may be exercised during the
lifetime of Grantee only by Grantee.

 

7.                                      Purchase
for Purpose of Investment.

 

7.1                                 Investment
Intent at Grant. Grantee represents and agrees that at the time of grant
the Shares to be acquired upon exercising this Option will be acquired for
investment, and not with a view to the sale or distribution thereof.

 

7.2                                 Investment
Intent at Exercise. In the event that the sale of Shares under the Plan is
not registered under the Securities Act but an exemption is available which
requires an investment representation or other representation, the Grantee
shall represent and agree at the time of exercise that the Shares being
acquired upon exercising this Option are being acquired for investment, and not
with a view to the sale or distribution thereof, and shall make such other
representations as are deemed necessary or appropriate by the Company and its
counsel.

 

7.3                                 Legends.
If the Company chooses to deliver certificates to evidence the Shares purchased
under this Agreement in an unregistered transaction all such certificates shall
bear the following legend (and such other restrictive legends as are required
or deemed advisable under the provisions of any applicable law):

 

5

 

“THE SHARES
REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES
LAWS OF ANY OTHER JURISDICTION, AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL (A) REGISTERED UNDER THE
SECURITIES ACT OR THE SECURITIES LAWS OF ANY OTHER JURISDICTION, OR (B) IN THE
OPINION OF COUNSEL, IN FORM AND SUBSTANCE SATISFACTORY TO TALECRIS
BIOTHERAPEUTICS HOLDINGS CORP., SUCH OFFER, SALE, TRANSFER, PLEDGE OR
HYPOTHECATION IS IN COMPLIANCE THEREWITH.

 

THE SHARES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A REPURCHASE RIGHT IN FAVOR OF
THE COMPANY OR ITS ASSIGNEE AS SET FORTH IN THE STOCK OPTION AWARD AGREEMENT,
DATED                    
BETWEEN                              
AND TALECRIS BIOTHERAPEUTICS HOLDINGS CORP. SUCH REPURCHASE RIGHT IS BINDING ON
TRANSFEREES OF THE SHARES REPRESENTED BY THIS CERTIFICATE.”

 

7.4                                 Removal
of Legends. If, in the opinion of the Company and its counsel, any legend
placed on a stock certificate representing Shares sold under this Agreement is
no longer required, the holder of such certificate shall be entitled to
exchange such certificate for a certificate representing the same number of
Shares but without such legend.

 

7.5                                 Administration.
Any determination by the Company and its counsel in connection with any of the
matters set forth in this Section 7 shall be conclusive and binding on the
Employee and all other persons.

 

8.                                      Right
of Offset. The Company shall have the right to offset against the
obligation to deliver Shares in respect of any exercise of an Option, any
outstanding amounts then owed by Grantee to the Company.

 

9.                                      Privileges
of Stock Ownership. Grantee shall not have any of the rights of a
stockholder of the Company with respect to any Shares until the Shares are
issued to Grantee and no adjustment shall be made for cash distributions in
respect of such Shares for which the distribution date (or record date, in the
event the Company becomes a corporation) is prior to the date upon which such
Grantee or permitted transferee shall become the holder of record thereof.

 

6

 

10.                               Entire
Agreement. The Plan is incorporated herein by reference. This
Agreement, the Plan, the Exercise Agreement, the Stockholders’ Agreement and
such other documents as may be executed in connection with the exercise of this
Option constitute the entire agreement and understanding of the parties hereto
with respect to the subject matter hereof and supersede all prior
understandings and agreements with respect to such subject matter. Any action
taken or decision made by the Committee arising out of or in connection with
the construction, administration, interpretation or effect of this Agreement
shall lie within its sole discretion, as the case may be, and shall be final,
conclusive and binding on the Grantee and all persons claiming under or through
the Grantee.

 

11.                               No
Obligation to Employ. Nothing in the Plan or this Agreement shall
confer on Grantee any right to continue in the employ of, or other relationship
with, the Company or any Related Entity, or limit in any way the right of the
Company or any Related Entity to terminate Grantee’s employment or other
relationship at any time, with or without Cause.

 

12.                               Notices.
Any notice required to be given or delivered to the Company under the terms
of this Agreement shall be in writing and addressed to the Corporate Secretary
of the Company at its principal corporate offices. Any notice required to be
given or delivered to Grantee shall be in writing and addressed to Grantee at
the address indicated below or to such other address as such party may
designate in writing from time to time to the Company. All notices shall be
deemed to have been given or delivered upon: 
personal delivery; three (3) days after deposit in the United States
mail by certified or registered mail (return receipt requested); one (1)
business day after deposit with any return receipt express courier (prepaid);
or one (1) business day after transmission by facsimile.

 

13.                               Successors
and Assigns. The Company may assign any of its rights under this
Agreement. This Agreement shall be binding upon and inure to the benefit of the
successors and assigns of the Company. Subject to the restrictions on transfer
set forth herein, this Agreement shall be binding upon Grantee and Grantee’s
heirs, executors, administrators, legal representatives, successors and
assigns.

 

14.                               Governing
Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of New York without regard to that body of
law pertaining to choice of law or conflict of law.

 

7

 

IN WITNESS WHEREOF, the parties
hereto have executed this Agreement as of the date noted above.

 

 

	
   

  	
  TALECRIS
  BIOTHERAPEUTICS HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Grantee]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Grantee’s Address]

  	
   

  

 

8

 

Schedule A

 

TERMS OF OPTION GRANT

 

Grantee Name:

 

Grant Date:

 

Total Number of Shares Underlying
the Option:

 

Option Exercise Price:  $11.11 per share

 

Number of Shares Underlying
Performance-Based Options (65% of Total):

 

Number of Shares Underlying
Time-Based Options (35% of Total):

 

 

[Annexes and Schedules
Intentionally Omitted]

 

 

Exhibit A

 

TALECRIS BIOTHERAPEUTICS
HOLDINGS CORP. 

2005 STOCK OPTION AND INCENTIVE PLAN (the “Plan”)

STOCK OPTION EXERCISE AGREEMENT

 

I hereby elect to purchase the number of shares of
Common Stock of Talecris Biotherapeutics Holdings Corp (the “Company”) as set forth below:

 

	
  Grantee:

  	
   

  	
  Number of Shares
  Purchased:

  
	
   

  	
   

  	
   

  
	
  Social Security Number:

  	
   

  	
  Purchase Price per
  Share:

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Aggregate Purchase
  Price:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date of Option Award
  Agreement:

  
	
   

  	
   

  	
   

  
	
  Type of Option:
  Nonqualified Stock Option

  	
   

  	
  Exact Name of Title to
  Shares:

  
	
   

  	
   

  	
   

  

 

1.                                      Delivery
of Purchase Price. Grantee hereby delivers to the Company the Exercise
Price, either in cash (by check) in the amount of $           ,
receipt of which is acknowledged by the Company, or by some other method as
approved by the Company in its sole discretion;

 

2.                                      Payment
of Withholding Tax. Grantee hereby delivers to the Company the amount
necessary to satisfy any withholding tax obligations of the Company in cash (by
check) in the amount of $                  ,
receipt of which is acknowledged by the Company, or by some other method as
approved by the Company in its sole discretion.

 

3.                                      Representations.
In connection with the exercise of the Option, Grantee hereby represents to the
Company as follows:

 

(a)                                  Grantee
is acquiring the Shares solely for investment purposes, with no present intention
of distributing or reselling any of the Shares or any interest therein. Grantee
acknowledges that the Shares have not been registered under the Securities Act
of 1933, as amended (the “Securities Act”).

 

(b)                                 Grantee
is aware of the Company’s business affairs and financial condition and has
acquired sufficient information about the Company to reach an informed and
knowledgeable decision to acquire the Shares.

 

(c)                                  Grantee
understands that the Shares are “restricted securities” under applicable U.S.
federal and state securities laws and that, pursuant to these laws, he or she
must hold the Shares indefinitely unless they are registered

 

 

with the Securities and
Exchange Commission and qualified by state authorities, or unless an exemption
from such registration and qualification requirements is available. Grantee
acknowledges that the Company has no obligation to register or qualify the
Shares for resale. Grantee further acknowledges that if an exemption from
registration or qualification is available, it may be conditioned on various
requirements including, but not limited to, the time and manner of sale, the
holding period for the Shares and requirements relating to the Company which
are outside of Grantee’s control, and which the Company is under no obligation
to and may not be able to satisfy.

 

(d)                                 Grantee
understands that there is no public market for the Shares, that no market may
ever develop for them and that the Shares have not been approved or disapproved
by the Securities and Exchange Commission or any other federal, state or other
governmental agency.

 

(e)                                  Grantee
understands that the Shares are subject to certain restrictions on transfer set
forth in the Plan. Both the Plan and the applicable Award Agreement pursuant to
which the Option has been granted are incorporated herein by reference.

 

(f)                                    Grantee
understands that the certificate (if any) representing the Shares will be
imprinted with the following legends:

 

THE SHARES
EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAW AND MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT COVERING SUCH SHARES OR THE COMPANY RECEIVES AN
OPINION OF COUNSEL FOR THE HOLDER OF THE SHARES, REASONABLY SATISFACTORY TO THE
COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS
EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT
AND APPLICABLE STATE SECURITIES LAWS.

 

THE SHARES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO A REPURCHASE RIGHT IN FAVOR OF THE COMPANY
OR ITS ASSIGNEE AS SET FORTH IN THE STOCK OPTION AWARD AGREEMENT, DATED                   
BETWEEN                             
AND

 

 

TALECRIS
BIOTHERAPEUTICS HOLDINGS CORP. SUCH REPURCHASE RIGHT IS BINDING ON TRANSFEREES
OF THE SHARES REPRESENTED BY THIS CERTIFICATE.”

 

(g)                                 Grantee
has consulted his or her own tax advisors in connection with the exercise of
this Option and is not relying upon the Company for any tax advice.

 

(h)                                 Grantee
is presently an employee of the Company or was an employee within 90 days prior
to exercise (one year if Grantee is no longer an employee due to death or
Disability).

 

4.                                      Legal
Representatives of Grantee. If Options are being exercised on behalf of
a Grantee, then this Notice must be signed by such Grantee’s legal
representative and must be accompanied by a certificate issued by an
appropriate authority evidencing that the individual signing this Notice has
been duly appointed and is currently serving as the Grantee’s legal
representative under applicable local law governing decedents’ estates.

 

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature of Grantee

  	
   

  

 

 

Spousal Consent

 

I acknowledge that I have read the foregoing Stock
Option Exercise Agreement (the “Exercise Agreement”),
the Stock Option Award Agreement and the Plan (the “Option
Documents”) and that I know their contents. I hereby consent to
and approve of the exercise of the Option by my spouse in accordance with the
provisions of the Option Documents, and agree that the shares of the Common
Stock of Talecris Biotherapeutics Holdings Corp. purchased thereunder (the “Shares”) and any interest I may have
in such Shares are subject to all the provisions of the Option Documents. I
will take no action at any time to hinder operation of the Exercise Agreement
on these Shares or any interest I may have in or to them.

 

 

	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
  Signature of Grantee’s Spouse

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Spouse’s Name - Typed or
  Printed

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Grantee’s Name - Typed or
  Printed

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