Document:

Exhibit 10.25

 

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT
AGREEMENT (“Agreement”) dated as of September 5, 2006 between Talecris
Biotherapeutics Holdings Corporation (the “Company”) and John Gaither (the “Executive”)
(together, the “Parties”).

 

WHEREAS, the
Parties wish to establish the terms of Executive’s employment with the Company.

 

Accordingly,
the Parties agree as follows:

 

1.     Employment
and Acceptance. The Company shall employ the Executive, and Executive shall
accept employment, subject to the terms of this Agreement, beginning on
September 05, 2006 (the “Effective Date”).

 

2.     Term.
Subject to earlier termination pursuant to Section 5 of this Agreement, this
Agreement and the employment relationship hereunder shall continue for two (2)
years from the Effective Date (“Initial Term”) and shall renew for additional
one (1) year intervals upon written notification by the Board of Directors. If
the Board does not provide such written notification thirty days prior to the
expiration of the Term, then the Agreement shall not be extended. If the Board
provides such written notification then the Agreement shall be so extended
unless the Executive provides written notification to the Board that Executive
does not wish to extend the Term. Executive’s written notice of his desire not
to extend the Term shall be provided to the Board by sixty (60) days prior to
the expiration of the Term or, if the Board has not yet then provided such
notification, then by seven (7) days after written notification from the Board.
As used in this Agreement, the “Term” shall refer to the period beginning on
the Effective Date and ending on the date the Executive’s employment terminates
in accordance with this Section 2 or Section 5. “Renewal Term” shall refer to
each additional one year interval following the expiration of the Initial Term
or the previous Renewal Term. In the event that the Executive’s employment with
the Company terminates for any reason, the Company’s obligation to continue to
pay all base salary, as adjusted, bonus and other benefits then accrued shall
terminate except as may be provided for in Section 5 of this Agreement.

 

3.     Duties
and Title.

 

3.1.    Title.
The Company shall employ the Executive to render exclusive and full-time
services to the Company and its subsidiaries. The Executive shall serve in the
capacity of Executive Vice President, General Counsel, and Corporate Secretary
of Talecris Biotherapeutics Holdings Corporation, and shall report directly to
the Chief Executive Officer and to any committees of the Board of Directors
(the “Board”) as determined in the discretion of the Board.  

 

3.2.    Duties.
The Executive will have such authority and responsibilities and will perform
such executive duties customarily performed by a general counsel or chief legal
counsel of a company in similar lines of business as the Company and its
subsidiaries or as may be assigned to Executive by the Chief Executive Officer.
The Executive will devote all his full working-time and attention to the
performance of such duties and to the 

 

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promotion of
the business and interests of the Company and its subsidiaries except for
directorships and similar positions approved by the Executive Chairman, which
approval may be revoked at any time. As of the date of this Agreement,
Executive’s position as Counsel to the Board of Directors of Global Healthcare
Exchange, LLC is approved.

 

4.     Compensation
and Benefits by the Company. As compensation
for all services rendered pursuant to this Agreement, the Company shall provide
the Executive the following during the Term:

 

4.1.    Base
Salary. The Company will pay to the Executive an annual base salary of
three hundred and twenty thousand dollars ($320,000), payable in accordance
with the customary payroll practices of the Company (“Base Salary”). Executive’s
Base Salary shall be reviewed consistent with the normal merit and pay
adjustment cycle for executives. In evaluating adjustments to Executive’s Base
Salary, such factors as corporate performance, individual merit, inflation, and
other appropriate considerations shall be taken into account.

 

4.2.    Bonuses.
The Executive will be eligible to receive an annual bonus (“Bonus”) under a
plan established by the Company in the amount determined by the Board based
upon achievement of performance measures derived from the annual business plan
presented by management and approved by the Board. The Executive’s target bonus
shall be 50% of base salary (the “Target Bonus”), with the actual amount of
each Bonus being determined under the Bonus Plan in effect at that time as
approved by the Board. In the first performance year, the Bonus shall be
prorated for the period of employment and the Executive shall receive such
prorated Bonus independent of the Company’s achievement of triggers under the
Bonus Plan. In addition, the Executive shall receive a one-time sign-on bonus
of $40,000 (“Sign-on Bonus”) payable within 30 days of the Effective Date. In the event Executive’s employment terminates
pursuant to provision 5.1 during his first year of employment, Executive must repay his entire Sign-on Bonus to the Company within ten (10) days
of his termination date. In the event Executive’s employment terminates
pursuant to provision 5.1 during his second year of employment, Executive must repay
one-half ($20,000) of his Sign-on Bonus to the Company within ten (10) days of
his termination date. The Company
may, at its option, deduct any such amount due to the Company from any monies
due to Executive upon his termination.

 

4.3.    Participation
in Employee Benefit Plans. The Executive shall be entitled, if and to the
extent eligible, to participate in all of the applicable benefit plans of the
Company, which may be available to other senior executives of the Company, on
the same terms as such other executives. The Company may at any time or from
time to time amend, modify, suspend or terminate any employee benefit plan,
program or arrangement for any reason without Executive’s consent if such
amendment, modification, suspension or termination is consistent with the
amendment, modification, suspension or termination for other employees of the
Company. The Company agrees to reimburse Executive for the cost of group health
insurance coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act
of 1986 (COBRA) or similar employment gap health insurance for Executive and
his spouse and child, grossed up for taxes, until such time as the 

 

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Executive and
his spouse and child are eligible for coverage under the Company’s medical and
dental plans.

 

4.4.    Vacation.
The Executive shall be entitled to four (4) weeks of paid vacation. Executive
shall not be entitled to payment for unused vacation days upon the termination
of his employment except as set forth in Section 5 below. The carry-over and
accrual of vacation days shall be in accordance with Company policy, except
that two weeks of vacation will immediately accrue.

 

4.5.    Expense
Reimbursement. The Executive shall be entitled to receive reimbursement for
all appropriate business expenses incurred by him in connection with his duties
under this Agreement in accordance with the policies of the Company as in
effect from time to time.

 

4.6.    Stock
Options. The Executive shall be eligible to participate in the 2005 Stock
Option and Incentive Plan established by the Company (the “Equity Incentive
Plan”) pursuant to the terms of the Equity Incentive Plan and any applicable
agreements thereunder as determined from time to time by the Board. As of the
date of hire Executive will be granted an option under the terms of the Equity
Incentive Plan to purchase 32,000 shares of common stock of the Company (which
is equal to 0.243% of the fully diluted number of shares of common stock
outstanding as of the Effective Date) with a per share exercise price equal to
the fair market value as determined on or before December 1, 2006 by an
independent appraiser contracted by the Company. The options will vest based
upon time and performance requirements through March 31, 2010. In the event of
any conflict between this document and the Equity Incentive Plan, the terms of
the Equity Incentive Plan shall govern. In the event that a Change of
Control  (as defined in Executive’s
Option Award Agreement) occurs before such appraisal or in the event that a
Change of Control process causes the exercise price of the stock options to be
materially higher than anticipated at the time of this Agreement, the Executive
Chairman will recommend to the Board that additional options be granted or a
special bonus be paid in order to treat Executive fairly, determined in the
sole discretion of the Executive Chairman and the Board.

 

4.6.1.  For
avoidance of doubt the time-based options shall vest as if the Executive’s
employment commenced on April 1, 2006.

 

4.7.    Relocation
and Temporary Living Expenses.

 

4.7.1.  Upon submission of appropriate receipts, all
reasonable relocation expenses, up to a maximum of $150,000, incurred by Executive will be reimbursed by
the Company including (but not limited to): relocation assistance fees, realtor
and closing costs on the sale of Executive’s primary residence and purchase of
a primary residence in North Carolina, three family house hunting trips for the
Executive and actual moving date, trucking/moving expenses, and car rental
until relocated, storage and other reasonable expenses incurred in the normal
course of relocation (“Relocation Expenses”). In addition, Executive
will be reimbursed by the Company for travel expenses and reasonable temporary quarters until relocated (“Temporary
Living Expenses”). Taxable Relocation Expenses and Temporary Living Expenses will be 

 

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grossed up to cover Executive’s federal and state income tax liability.
In the event Executive’s employment terminates pursuant to provision 5.1 during
his Initial Term, Executive must repay to the Company within ten (10) days of
his termination Relocation Expenses (but not Temporary Living
Expenses) incurred by the Company on a
prorated basis relative to the fraction of time employed in the two year period
after the Effective Date. The Company may, at its option, deduct any
such amount due to the Company from any monies due to Executive upon his
termination.

 

4.7.2.  The Executive is expected to re-locate as soon as
reasonably practical following the end of the 2006-2007 school year. The Executive shall establish a temporary
residence in North Carolina no later than October 1, 2006 and shall establish a
permanent, primary residence in North Carolina no later than September 1, 2007,
unless there is a reasonable probability that a Change in Control, not
involving an Initial Public Offering, will occur prior to December 31, 2007. In
the event of a dispute as to whether there is such a reasonable probability, this will be resolved conclusively
by the Board. In the event that a required relocation
does not occur, Executive shall be considered in breech of this agreement and
the Company shall have the right to terminate for cause under provision 5.1.

 

4.8.    Continuing Professional Education. The Company agrees to pay reasonable costs associated with the
continuing education requirements of maintaining the Executive’s professional
designation, including related professional organization memberships, as well
as seminars to advance the Executive’s skills. Such costs include the
reasonable costs of seminars, travel, lodging and meals while attending such
functions. Time associated with continuing education requirements will
not be considered vacation.

 

5.     Termination
of Employment.

 

5.1.    By
the Company for Cause or by the Executive Without Good Reason. If: (i) the
Company terminates the Executive’s employment with the Company for Cause (as
defined below); or (ii) Executive terminates his employment without Good Reason
(as defined below), the Executive or the Executive’s legal representatives (as
appropriate), shall be entitled to receive the following:

 

5.1.1.  the
Executive’s accrued but unpaid Base Salary, and benefits set forth in Section
4.3, if any, to the date of termination;

 

5.1.2.  the
Executive’s earned but unpaid bonus, if any, for the performance years prior to
termination and only if the Company and not the Executive terminates
employment;

 

5.1.3.  expenses
reimbursable under Section 4.5 and Temporary Living Expenses under Section 4.7
incurred but not yet reimbursed to the Executive to the date of termination.

 

For the purposes of this Agreement, “Cause”
means, as determined by the Board (or a special committee of the Board which
does not include employees of the Company), with respect to 

 

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conduct during the Executive’s employment
with the Company, whether or not committed during the Term, (i) commission of a
felony by Executive; (ii) acts of dishonesty by Executive resulting or
intending to result in personal gain or enrichment at the expense of the
Company or its subsidiaries; (iii) Executive’s material breach of his
obligations under this Agreement; (iv) conduct by Executive in connection with
his duties hereunder that is fraudulent, unlawful or grossly negligent,
including, but not limited to, acts of discrimination; (v) engaging in personal
conduct by Executive (including but not limited to employee harassment or
discrimination, the use or possession at work of any illegal controlled
substance) which discredits or damages the Company or its subsidiaries; (vi)
contravention of specific lawful direction from the Chief Executive Officer
that would not otherwise conflict with Executive’s responsibilities or duties
or the material failure to perform the duties to be performed by Executive
under the terms of Section 3.2 of this Agreement or (vii) breach of the
Executive’s covenants set forth in Section 6 below before termination of
employment; provided, that, the Executive shall have fifteen (15) days after
notice from the Company to cure the deficiency leading to the Cause
determination (except with respect to (i) and (ii) above), if curable. A
termination for “Cause” shall be effective immediately (or on such other date
set forth by the Company).

 

For the purposes of this Agreement, “Good
Reason” means, without the Executive’s consent, (i) a material reduction in the
nature or status of Executive’s responsibilities, authority, position or
duties; (ii) the Executive’s removal from the position of General Counsel other
than for Cause; (iii) a material adverse reduction in the amount of aggregate
compensation provided for herein or failure to pay such compensation; (iv) the
Company’s material breach of the Agreement; provided that a suspension of the
Executive and the requirement that the Executive not report to work shall not
constitute “Good Reason” if the Executive continues to receive the compensation
and benefits required by this Agreement or (v) relocation of the Executive’s
office more than 50 miles from its location on the Effective Date (vi) the
failure by the Company to continue in effect any incentive compensation plan in
which the Executive participates unless an equitable alternative compensation
arrangement has been provided, except to the extent that participation in such
plans has been reduced or eliminated for all other eligible executives; (vii)
except as required by law, the failure by the Company to continue to provide
Executive with benefits at least as favorable as those enjoyed by Executive
under the employee benefit and welfare plans of the Company including, without
limitation, profit sharing, life insurance, medical, dental , health and
accident , disability, deferred compensation and savings plans commensurate
with those generally available to all Executives. Notwithstanding the
foregoing, a reduction in the amount of Executive’s aggregate compensation in
an amount proportional to such a reduction (but not to exceed 20 percent) in
the aggregate compensation of other senior executives shall not constitute Good
Reason. The Company shall have fifteen (15) days after receipt of notice from
the Executive in writing specifying the deficiency to cure the deficiency that
would result in Good Reason.

 

5.2.    Due
to Death or Disability. If: (i) the Executive’s employment terminates due
to his death; or (ii) the Company terminates the Executive’s employment with
the Company due to the Executive’s Disability (as defined below) and  (i) the Executive honors all applicable
provisions of this Agreement following such termination due to Disability, (ii)
Executive agrees to make a good faith effort to the extent reasonably able to
do so to 

 

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provide
consulting services to the Company as requested by the Company during the
severance period at no additional payment or remuneration other than the
severance amount stated herein, (iii) Executive or Executive’s legal
representative executes, without revoking, a valid release agreement in a form
reasonably acceptable to the Company (but which does not require Executive or
Executive’s legal representative to release any rights under this section of
the Agreement or indemnification rights under section 8 of the Agreement or
under the articles of incorporation or by-laws of the Company or any of its
subsidiaries), the Executive or the Executive’s legal representatives (as
appropriate), shall be entitled to receive the incremental severance payments
set forth in this section 5.2 (in addition to the payments upon termination set
forth in Section 5.1):

 

5.2.1.  the
unpaid portion of the Bonus, if any, relating to the calendar years prior to
the calendar year of the Executive’s termination, payable in equal monthly
installments for twelve (12) months on the last business day of the month;

 

5.2.2.  payment
for accrued unused vacation days, payable in accordance with Company policy

 

5.2.3.  if
the Company achieves the performance objectives for the year in which Executive’s
employment is terminated, a pro-rata share of the Bonus in such performance
year (based upon the number of days he was employed by the Company in the year
in question) at 100% of Target Bonus, payable in the same manner and at the
same time as other executives remaining at the Company are paid; and

 

5.2.4.  the
exercising of vested stock options as set forth in Section 4.2 of Executive’s
Stock Option Award Agreement.

 

For the purposes of this Agreement, “Disability”
means a reasonable determination by a physician reasonably acceptable to the
Company in accordance with applicable law that as a result of a physical or
mental injury or illness, the Executive is unable to perform the essential
functions of his job with or without reasonable accommodation for a period of
(i) 60 consecutive days; or (ii) 90 days in any one (1) year period.

 

5.3.    By
the Company Without Cause or By the Executive for Good Reason. If during
the Term the Company terminates Executive’s employment without Cause (which may
be done at any time without prior notice) or Executive terminates his
employment for Good Reason upon at least fifteen (15) days prior written
notice, the Executive shall receive the incremental severance payments set
forth in this Section 5.3, as described below (in addition to the payments upon
termination specified in Section 5.2) upon execution without revocation of a
valid release agreement in a form reasonably acceptable to the Company  (but which does not require Executive to
release any rights under this section of the Agreement or indemnification
rights under section 8 of the Agreement or under the articles of incorporation
or by-laws of the Company or any of its subsidiaries) and provided that the
Executive honors all applicable provisions of this Agreement following
termination and that Executive agrees to provide consulting services to the
Company, upon request, of up to ten (10) hours of Executive’s time per month
during this eighteen 

 

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(18) month
time period, at no additional payment or remuneration other than the severance
amount stated herein:

 

5.3.1.  continued
Base Salary for the greater of eighteen (18) months after the date of
termination or the remainder of the number of months remaining in the then
current contract term payable in equal monthly installments on the last
business day of the month;

 

5.3.2.  Bonus
payments in an aggregate amount equal to the lesser of the Bonus amount earned
by the Executive for the years prior to the calendar year of the Executive’s
termination (without regard to any pro ration) or the Target Bonus, payable in
equal monthly installments for twelve (12) months on the last business day of
the month following the termination date; and

 

5.3.3.  to
the extent Executive elects to continue his group health coverage pursuant to
COBRA, the Company shall pay its usual share of his group health insurance
premium during the period in which Base Salary is paid under Section 5.3.1,
after which Executive may exercise his rights (at his sole expense) to
continuation coverage of group health coverage pursuant to COBRA. Notwithstanding
the foregoing, the benefits provided under this Section 5.3.3, shall cease when
Executive is covered under another group health plan.

 

5.3.4.  in
the event of termination following a Change in Control, occurs on or before
September 5, 2009 Executive shall be entitled to: (a) protection on the actual
losses he reasonably incurs on the sale of his primary residence located in the
Raleigh area in an amount up to $200,000 (the calculation of such loss to
include the difference between the Executive’s cost of purchase including any
renovation expenses which are completed within 18 months of relocation and
which are included in the taxable basis of the property and the sale proceeds
net of selling expenses and mortgage interest following the termination event)
and (b) a relocation allowance of $50,000 provided he is relocating his primary
residence at least 100 miles from the then current residence in Raleigh and the
relocation occurs within six months of the termination event.

 

5.3.5.  the
exercising of vested stock options as set forth in Section 4.1 of Executive’s
Stock Option Award Agreement.

 

5.4.    Termination
Due to Completion of Term Without Renewal. If the contract lapses due to
non-renewal by the Company (i) upon expiration of the Initial Term, (ii) upon
expiration of the first Renewal Term, or (iii) upon expiration of any
subsequent Renewal Term within six (6) months of a Change in Control, the
Executive or the Executive’s legal representatives (as appropriate) shall be
entitled to receive the benefits set forth in section 5.3, but specifically
excluding the benefits set forth in section 5.3.2.

 

5.5.    Termination
by Executive following Change in Control. If Executive terminates his
employment during the 90-day period commencing nine months after a Change in
Control not involving an Initial Public Offering, the Executive shall receive
the incremental severance payments set forth in this Section 5.5, as described
below (in 

 

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addition to
the payments upon termination specified in Section 5.2) upon execution without
revocation of a valid release agreement in a form reasonably acceptable to the
Company  (but which does not require
Executive to release any rights under this section of the Agreement or
indemnification rights under section 8 of the Agreement or under the articles
of incorporation or by-laws of the Company or any of its subsidiaries) and
provided that the Executive honors all applicable provisions of this Agreement
following termination and that Executive agrees to provide consulting services
to the Company, upon request, of up to ten (10) hours of Executive’s time per
month during this twelve (12) month time period, at no additional payment or
remuneration other than the severance amount stated herein:

 

5.5.1.  continued
Base Salary for twelve (12) months after the date of termination payable in
equal monthly installments on the last business day of the month.

 

5.5.2.  to
the extent Executive elects to continue his group health coverage pursuant to
COBRA, the Company shall pay its usual share of his group health insurance
premium during the period in which Base Salary is paid under Section 5.3.1,
after which Executive may exercise his rights (at his sole expense) to
continuation coverage of group health coverage pursuant to COBRA. Notwithstanding
the foregoing, the benefits provided under this Section 5.3.3, shall cease when
Executive is covered under another group health plan.

 

5.5.3.  the
exercising of vested stock options as set forth in Section 4.1 of Executive’s
Stock Option Award Agreement.

 

The Company’s
obligation to provide the payments and benefits set forth above in sections
5.2, 5.3, and 5.5 will immediately cease in the event the Executive engages in
conduct constituting a breach of the provision of Sections 5.7 or 6 of this
Agreement.

 

5.6.    Removal
from any Boards and Position. If the Executive’s employment is terminated
for any reason under this Agreement, he shall be deemed to resign (i) if a
member, from the Board or board of directors of any subsidiary of the Company
or any other board to which he has been appointed or nominated by or on behalf
of the Company and (ii) from any position with the Company or any subsidiary of
the Company, including, but not limited to, as an officer of the Company and
any of its subsidiaries.

 

5.7.    Non-disparagement.
The Company and Executive agree that neither party will not at any time
(whether during or after the Term) publish or communicate to any person or
entity except in the case of the Executive to his spouse, or in the case of the
Company and Executive to legal counsel, any Disparaging (as defined below)
remarks, comments or statements concerning the Executive or the Company,
Cerberus Capital Management, L.P., Ampersand Ventures, their parents,
subsidiaries and affiliates, and their respective present and former members,
partners, directors, officers, shareholders, employees, agents, attorneys,
successors and assigns, except as required by law or an order of a court or
governmental agency with jurisdiction. “Disparaging” remarks, comments or
statements are those that impugn the character, honesty, integrity or morality
or business acumen or abilities in connection with any aspect of the operation
of business of the individual or entity being disparaged.

 

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6.     Restrictions
and Obligations of the Executive

 

6.1.    Confidentiality.
(a) During the course of the Executive’s employment by the Company (prior to
and during the Term), the Executive has had and will have access to certain
trade secrets and confidential information relating to the Company and its
subsidiaries (the “Protected Parties”) which is not readily available from
sources outside the Company. The confidential and Proprietary information and,
in any material respect, trade secrets of the Protected Parties are among their
most valuable assets, including but not limited to, their customer, supplier
and vendor lists, databases, competitive strategies, computer programs,
frameworks, or models, their marketing programs, their sales, financial,
marketing, training and technical information, their product development (and
proprietary product data) and any other information, whether communicated orally,
electronically, in writing or in other tangible forms concerning how the
Protected Parties create, develop, acquire or maintain their products and
marketing plans, target their potential customers and operate their retail and
other businesses. The Protected Parties invested, and continue to invest,
considerable amounts of time and money in their process, technology, know-how,
obtaining and developing the goodwill of their customers, their other external
relationships, their data systems and data bases, and all the information
described above (hereinafter collectively referred to as “Confidential
Information”), and any misappropriation or unauthorized disclosure of
Confidential Information in any form would irreparably harm the Protected
Parties. The Executive acknowledges that such Confidential Information
constitutes valuable, highly confidential, special and unique property of the
Protected Parties. The Executive shall hold in a fiduciary capacity for the
benefit of the Protected Parties all Confidential Information relating to the
Protected Parties and their businesses, which shall have been obtained by the
Executive during the Executive’s employment by the Company or its subsidiaries
and which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this Agreement). Except
as required by law or an order of a court or governmental agency with
jurisdiction, the Executive shall not, during the period the Executive is
employed by the Company or its subsidiaries or at any time for five (5) years
thereafter, disclose any Confidential Information, directly or indirectly, to
any person or entity for any reason or purpose whatsoever, nor shall the
Executive use it in any way, except in the course of the Executive’s employment
with, and for the benefit of, the Protected Parties or to enforce any rights or
defend any claims hereunder or under any other agreement to which the Executive
is a party, provided that such disclosure is relevant to the enforcement of
such rights or defense of such claims and is only disclosed in the formal
proceedings related thereto. The Executive shall take all reasonable steps to
safeguard the Confidential Information and to protect it against disclosure,
misuse, espionage, loss and theft. The Executive understands and agrees that
the Executive shall acquire no rights to any such Confidential Information. (b)
All files, records, documents, drawings, specifications, data, computer
programs, evaluation mechanisms and analytics and similar items, except for
those evaluation mechanisms and analytics and similar items which are of prior
art or common practice within the Executive’s professional capacity, relating
thereto or to the Business (for the purposes of this Agreement, “Business”
shall be as defined in Section 6.3 hereof), as well as all customer lists,
specific customer information, compilations of product research and marketing
techniques of the Company 

 

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and its subsidiaries,
whether prepared by the Executive or otherwise coming into the Executive’s
possession, shall remain the exclusive property of the Company and its
subsidiaries, and the Executive shall not remove any such items from the
premises of the Company and its subsidiaries, except in furtherance of the
Executive’s duties under any employment agreement. (c) It is understood that
while employed by the Company or its subsidiaries, the Executive will promptly
disclose to it, and assign to it the Executive’s interest in any invention,
improvement or discovery made or conceived by the Executive, either alone or
jointly with others, which: (i) relate in any manner to the existing or
contemplated business, research or activities of the Company; (ii) are suggested
by or result from Executive’s work with the Company, or (iii) result from the
Executive’s use of the Company’s time, materials, information, employees or
facilities even if made or conceived during other than working hours. At the
Company’s request and expense, the Executive will assist the Company and its
subsidiaries during the period of the Executive’s employment by the Company or
its subsidiaries and thereafter in connection with any controversy or legal
proceeding relating to such invention, improvement or discovery and in
obtaining domestic and foreign patent or other protection covering the same.
(d) As requested by the Company and at the Company’s expense, from time to time
and upon the termination of the Executive’s employment with the Company for any
reason, the Executive will promptly deliver to the Company and its subsidiaries
all copies and embodiments, in whatever form, of all Confidential Information
in the Executive’s possession or within his control (including, but not limited
to, memoranda, records, notes, plans, photographs, manuals, notebooks,
documentation, program listings, flow charts, magnetic media, disks, diskettes,
tapes and all other materials containing any Confidential Information)
irrespective of the location or form of such material. If requested by the
Company, the Executive will provide the Company with written confirmation that
all such materials have been delivered to the Company as provided herein.

 

6.2.    Non-Solicitation
or Hire. During the Term and for a period of twenty-four (24) months
following the termination of the Executive’s employment for any reason, the
Executive shall not solicit or attempt to solicit or induce, directly or
indirectly: (a) any person or entity who is a customer of the Company or its
subsidiaries, or who was a customer of the Company or its subsidiaries at any
time during the twelve (12) month period immediately prior to the date the
Executive’s employment terminates for any reason, to market, sell or provide to
any such person or entity any services or products offered by or available from
the Company or its subsidiaries (provided that if the Executive intends to
solicit any such person or entity for any other purpose, he shall notify the
Company of such intention and receive prior written approval from the Company);
(b) any supplier to the Company or any subsidiary to terminate, reduce or alter
negatively its relationship with the Company or any subsidiary or in any manner
interfere with any agreement or contract between the Company or any subsidiary
and such supplier; or (c) any employee of the Company or any of its
subsidiaries or any person who was an employee of the Company or any of its
subsidiaries during the twelve (12) month period immediately prior to the date
the Executive’s employment terminates for any reason, to terminate such
employee’s employment relationship with the Protected Parties in order, in
either case, to enter into a similar relationship with the Executive or any
other person or any entity in competition with the Business of the Company or
any of its subsidiaries.

 

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6.3.    Non-Competition.
During the Term and following the termination of Executive’s employment with
the Company for any reason, Executive, for the greater of eighteen (18) months
or the period in which the Company is making payments to the Executive in
accordance with sections 5.2 and 5.3 above, shall not, whether individually, as
a Director, Manager, member, stockholder, partner, owner, employee, consultant
or agent of any business, or in any other capacity, other than on behalf of the
Company or its subsidiaries, directly or indirectly organize, establish, own,
operate, manage, control, engage in, participate in, invest in, permit his name
to be used by, act as a consultant or advisor to, render services which are
materially similar to his services provided to the Company under this Agreement
for, alone or in association with any person, firm, corporation or business
organization, including but not limited to Baxter (if it then engages in or
owns, invests in, operates, manages or controls any venture or enterprise which
engages or proposes to engage in any business conducted by the Company or any
of its subsidiaries), CSL, Octapharma, Grifols, Biotest, Kedrion, Kamada and
Sanguine or otherwise assist any person or entity that engages in or owns,
invests in, operates, manages or controls any venture or enterprise which
engages or proposes to engage in any business conducted by the Company or any
of its subsidiaries on the date of the Executive’s termination of employment or
within eighteen (18) months of the Executive’s termination of employment in the
geographical areas of: (i) Johnston and Wake Counties, North Carolina; (ii) the
State of North Carolina; (iii) the states of Pennsylvania, California, New York
and Florida; (iv) the United States of America; and (v) any geographic
locations where the Company and its subsidiaries engage, in such business (the “Business”).
Notwithstanding the foregoing, nothing in this Agreement shall prevent the
Executive from owning for passive investment purposes not intended to
circumvent this Agreement, less than five percent (5%) of the publicly traded
common equity securities of any company engaged in the Business (so long as the
Executive has no power to manage, operate, advise, consult with or control the
competing enterprise and no power, alone or in conjunction with other
affiliated parties, to select a director, manager, general partner, or similar
governing official of the competing enterprise other than in connection with
the normal and customary voting powers afforded the Executive in connection
with any permissible equity ownership).

 

6.4.    Property.
The Executive acknowledges that all originals and copies of materials, records
and documents generated by him or coming into his possession during his
employment by the Company or its subsidiaries and which relate to the business
of the Company or its subsidiaries (excluding this Agreement and other
documents relating to Executive’s employment relationship with the Company) are
the sole property of the Company and its subsidiaries (“Company Property”).
During the Term, and at all times thereafter, the Executive shall not remove,
or cause to be removed, from the premises of the Company or its subsidiaries,
copies of any record, file, memorandum, document, computer related information
or equipment, or any other item relating to the business of the Company or its
subsidiaries, except in furtherance of his duties under the Agreement. When the
Executive’s employment with the Company terminates for any reason, or upon
request of the Company at any time, the Executive shall promptly deliver to the
Company all copies of Company Property in his possession or control.

 

11

 

6.5.    Sections
6.1, 6.2, and 6.3 of this Agreement, including each provision within those
sections, are independent and severable. In the event that a court of competent
jurisdiction finds any provision of Sections 6.1, 6.2, or 6.3 of this Agreement
to be overbroad or unenforceable for any reason, Executive and Company hereby
specifically agree and request that the court modify each such provision in a
manner that will make each such provision enforceable to the maximum extent
allowed by law.

 

7.     Remedies;
Specific Performance. The Parties acknowledge and agree that the Executive’s
breach or threatened breach of any of the restrictions set forth in Section 6
will result in irreparable and continuing damage to the Protected Parties for
which there may be no adequate remedy at law and that the Protected Parties
shall be entitled to equitable relief, including specific performance and
injunctive relief as remedies for any such breach or threatened or attempted
breach. The Executive also agrees that such remedies shall be in addition to
any and all remedies, including damages, available to the Protected Parties
against him for such breaches or threatened or attempted breaches. In addition,
without limiting the Protected Parties’ remedies for any breach of any
restriction on the Executive set forth in Section 6, except as required by law,
the Executive shall not be entitled to any payments set forth in Section 5.2 or
5.3 hereof if the Executive has breached the covenants applicable to the Executive
contained in Section 5.7 or 6,
the Executive will immediately return to the Protected Parties any such
payments previously received under Sections 5.2 and 5.3 upon such a breach,
and, in the event of such breach, the Protected Parties will have no obligation
to pay any of the amounts that remain payable by the Company under Sections 5.2
and 5.3.

 

8.     Indemnification.
The Company agrees, to the extent permitted by applicable law and its
organizational documents, to indemnify, defend and hold harmless the Executive
from and against any and all losses, suits, actions, causes of action,
judgments, damages, liabilities, penalties, fines, costs or claims of any kind
or nature (“Indemnified Claim”), including reasonable legal fees and related
costs incurred by Executive in connection with the preparation for or defense
of any Indemnified Claim, whether or not resulting in any liability, to which
Executive may become subject or liable or which may be incurred by or assessed
against Executive, relating to or arising out of his employment by the Company
or the services to be performed pursuant to this Agreement, provided that: (i)
the Company shall only defend but not indemnify or hold Executive harmless from
and against an Indemnified Claim in the event there is a final, non-appealable
determination that Executive’s liability with respect to such Indemnified Claim
resulted from Executive’s gross misconduct or gross negligence; and (ii) in the
event that the Executive’s actions, inactions, decisions or directions which
gave rise to the Indemnified Claim were outside the scope of his authority or
were plainly contrary to instructions provided him by the Board then the
Company shall not be obligated to either defend or indemnify Executive for the
Indemnified Claim and its responsibilities under this section of the Agreement
are null and void.

 

9.     Other
Provisions.

 

9.1.    Notices.
Any notice or other communication required or which may be given hereunder
shall be in writing and shall be delivered personally, telegraphed, telexed,
sent by facsimile transmission or sent by certified, registered or express
mail, postage prepaid or 

 

12

 

overnight mail
and shall be deemed given when so delivered personally, telegraphed, telexed,
or sent by facsimile transmission or, if mailed, four (4) days after the date
of mailing or one (1) day after overnight mail, as follows:

 

If the Company, to:

 

Attn.: Chief Executive Officer

P.O. Box 13887

79 TW Alexander Drive

4101 Research Commons

Research Triangle Park

Raleigh, NC  27709

Fax:  (919) 316-6669

 

If the Executive,

 

to the Executive’s home address reflected in the Company’s records.

 

9.2.    Entire
Agreement. This Agreement contains the entire agreement between the Parties
with respect to the subject matter hereof and supersedes all prior agreements,
written or oral, with respect thereto.

 

9.3.    Representations
and Warranties by Executive. The Executive represents and warrants that he
is not a party to or subject to any restrictive covenants, legal restrictions
or other agreements in favor of any entity or person which would in any way
preclude, inhibit, impair or limit the Executive’s ability to perform his
obligations under this Agreement, including, but not limited to,
non-competition agreements, non-solicitation agreements or confidentiality
agreements.

 

9.4.    Waiver
and Amendments. This Agreement may be amended, modified, superseded,
canceled, renewed or extended, and the terms and conditions hereof may be
waived, only by a written instrument signed by the Parties or, in the case of a
waiver, by the party waiving compliance. No delay on the part of any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any right, power or privilege
hereunder, nor any single or partial exercise of any right, power or privilege
hereunder, preclude any other or further exercise thereof or the exercise of
any other right, power or privilege hereunder.

 

9.5.    Governing
Law, Dispute Resolution and Venue (a) This Agreement shall be governed and
construed in accordance with the laws of the State of North Carolina. (b)  The parties agree irrevocably to submit to
the exclusive jurisdiction of the United States Federal District Court of North
Carolina, Eastern Division, or if no federal jurisdiction exists, to the state
courts located in the city of Raleigh, North Carolina for the purposes of any
suit, action or other proceeding brought by any party arising out of any breach
of any of the provisions of this Agreement and hereby waive, and agree not to
assert by way of motion, as a defense or otherwise, in any such suit, action,
or proceeding, any 

 

13

 

claim that it
is not personally subject to the jurisdiction of the above-named courts, that
the suit, action or proceeding is brought in an inconvenient forum, that the
venue of the suit, action or proceeding is improper, or that the provisions of
this Agreement may not be enforced in or by such courts. In addition, the
parties agree to the waiver of a jury trial.

 

9.6.    Assignability
by the Company and the Executive. This Agreement, and the rights and
obligations hereunder, may not be assigned by the Company or the Executive
without written consent signed by the other party; provided that the Company
may assign the Agreement to any successor that continues the business of the
Company.

 

9.7.    Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed
an original but all of which shall constitute one and the same instrument.

 

9.8.    Headings.
The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning of terms contained herein.

 

9.9.    Severability.
If any term, provision, covenant or restriction of this Agreement, or any part
thereof, is held by a court of competent jurisdiction of any foreign, federal,
state, county or local government or any other governmental, regulatory or
administrative agency or authority to be invalid, void, unenforceable or
against public policy for any reason, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected or impaired or invalidated. The Executive
acknowledges that the restrictive covenants contained in Section 6 are a
condition of this Agreement and are reasonable and valid in temporal scope and
in all other respects.

 

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

 

IN WITNESS WHEREOF, the Parties hereto,
intending to be legally bound hereby, have executed this Agreement as of the
day and year first above mentioned.

 

	
   

  	
  EXECUTIVE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ JOHN F. GAITHER, JR.

  	
   

  	
   

  
	
   

  	
  Name: John F. Gaither, Jr.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Talecris Biotherapeutics Holdings Corp

  	
   

  
				

 

14

 

	
   

  	
  By:

  	
  /s/ LAWRENCE D. STERN

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Lawrence D. Stern

  	
   

  
	
   

  	
  Title:

  	
  Executive Chairman

  	
   

  
						

 

15Exhibit 10.26.1

TALECRIS
DIRECTSM

SERVICES
AGREEMENT

THIS SERVICES AGREEMENT
(“Agreement”) is made and entered into 
as of this 25th day of August, 2005 (the “Effective Date”) by and
between TALECRIS BIOTHERAPEUTICS, INC., a North Carolina corporation (“Talecris”),
and CENTRIC HEALTH RESOURCES, LLC, a Delaware limited liability company
(“CHR”). Talecris and CHR may each be referred to herein as a “Party” or
collectively as the “Parties”.

WHEREAS, Talecris is in
the business of manufacturing prescription drug products and furnishing and
arranging for the furnishing of certain Talecris Alpha 1 products as further
described in this Agreement; and

WHEREAS, CHR, either
directly or through subcontractors, is in the business of furnishing clinical
and administrative pharmacy services (including but not limited to prescription
filling, delivery of prescription drug and ancillary products, pharmacy
benefits management services and related home infusion services and
reimbursement services) as further described in this Agreement; and

WHEREAS, Talecris desire
to have CHR perform such services from time to time; and,

WHEREAS, the Parties
desire to agree upon the terms and conditions upon which such services shall be
provided.

NOW THEREFORE, in
consideration of the premises and the mutual promises and covenants set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which hereby acknowledged, Talecris and CHR hereby agree as
follows:

1. DEFINITIONS. Capitalized terms not otherwise defined
shall have the meanings set forth as follows:

1.1.     “Adverse
Event” shall mean any adverse event associated with the use of any Product
in a human, whether or not considered drug-related.

1.2.     “Affiliate”
shall mean any person, individual, corporation or other business entity that
either directly or indirectly, through one or more intermediaries, Owns, is
Owned by, or is under common Ownership with a party to this Agreement, where
“Own,” “Owned” or “Ownership” refers to (i) direct or indirect possession of at
least fifty percent (50%) of the outstanding voting securities of a corporation
or a comparable ownership in any other type of entity; or (ii) the actual
ability of an entity, person or group to control and direct the management of
the person or entity, whether by contract or otherwise.

1.3.     “Business Day” shall
mean any day other than a day which is a Saturday, Sunday or federal bank or
federal government holiday in the United States of America.

 

 

1.4.     “Exit
Assistance Services” shall mean those services described in the Exit Plan
to be performed by CHR for the purpose of transitioning the Services to
Talecris or to a successor service provider chosen by Talecris upon the
expiration of termination of this Agreement.

1.5.     “Exit
Plan” shall mean the written plan agreed by the parties pursuant to Section
2.4 for provision of Exit Assistance Services by CHR.

1.6.     “IG”
means immune globulin.

1.7.     “Patient”
shall mean a patient registered in the Program.

1.8.     “Payor”
shall mean the Patient’s third party payor, responsible for reimbursement of
covered charges to Talecris DirectSM.

1.9.     “Products”
shall mean Talecris’ Alpha 1 products, including, without limitation, Prolastin®.

1.10.   “Program” shall mean the Talecris DirectSM
program for furnishing Prolastin® to Patients who register with the
Talecris DirectSM program as set forth in Exhibit A, attached
hereto and incorporated herein by reference.

1.11.   “Services” shall mean the services provided
by CHR under this Agreement, including the delivery, home infusion, and
pharmacy services set forth in Exhibit A.

1.12.   “Standards of Specialty Pharmacy” shall mean
all federal, state and local laws, regulations, rules and binding guidance with
respect to specialty pharmacies.

1.13.   “Talecris Consigned Inventory” shall mean the
Products delivered on a consignment basis to, and accepted by CHR into
inventory for provision to Patients under the terms of this Agreement.

1.14    “Term”
shall mean that Initial Term and all Renewal Terms, as defined in Section 10.1.

2. SERVICES.

2.1.     Engagement.
Talecris hereby engages CHR as an independent contractor to render, and CHR
agrees to be engaged to render, the Services on the terms and conditions set
forth herein. Services provided to Patients shall be provided upon the request
of a Patient or his or her legal representative, in accordance with and upon
receipt of a valid physician’s prescription.

2.2.     Subcontractors. Unless
otherwise required by law, CHR shall not subcontract the Services in whole or
in part to any third party other than AlphaNet, Inc., without the prior written
approval of Talecris, which approval shall not be unreasonably

 

2

 

withheld, delayed or conditioned. In the event
Talecris elects to approve CHR’s proposed use of a subcontractor to perform
Services hereunder, CHR shall remain liable and be responsible for the action,
inactions and performance of all obligations performed by subcontractor to the
same extent as if such obligations were performed by CHR employees and, for
purposes of this Agreement such subcontracted services shall be deemed Services
performed by CHR.

2.3.     Transition
from Current Provider. Beginning on the Effective Date, CHR shall
transition the Services from Talecris’ current service provider to CHR, in
accordance with the work plan agreed by the parties and in effect as of the
Effective Date. (the “Transition Plan”). CHR will perform all necessary
activities related to its functions under the Transition Plan. No fees will be
charged for these activities. CHR will defer business activities related to all
other product lines until (i) CHR has transitioned or converted at least ninety
percent (90%) of the Program’s Patients, or (ii) the Parties mutually agree
that the necessary infrastructure and business processes are in place.

2.4.     Exit
Plan.  Within six (6) months
following the Effective Date, the parties shall agree upon the Exit Plan. The
Exit Plan shall include, without limitation, a schedule of transition of the
Services from CHR to another contractor or to Talecris. The Exit Plan shall set
forth the manner and timing in which CHR shall provide Exit Assistance
Services, including without limitation: (a) making available on a commercially
reasonable basis, necessary personnel and resources to facilitate the
transition, (b) providing such interim Services as are necessary to
successfully complete the transition, and (c) providing training, documentation
and other materials necessary to enable Talecris, or its designee, to assume
responsibility for the Services, as mutually agreed in writing by the Parties.

2.5.     Talecris,
CHR and Subcontractor Qualifications. When received, each of Talecris and
CHR shall maintain all provider or supplier agreements and numbers necessary
for the submission by CHR of claims to Payors (with respect to governmental
Payors, such requirement shall include Medicaid but does not include Medicare).
Each of Talecris and CHR shall make available to the other upon reasonable
request documentation of all its applicable federal, state and professional
licenses, certificates, and provider or supplier agreement numbers. With
respect to approved subcontractors, CHR shall require that such subcontractors
have and continue to maintain all material licenses and certificates applicable
to the Services to be provided by such subcontractors. Talecris shall require
that its subcontractors engaged in the manufacture of Products have and
continue to maintain all material licenses and certificates applicable to the
manufacture of Products. CHR and Talecris shall use best efforts to ensure that
their respective subcontractors described in this Section 2.5 are not excluded
from participation in federal health care programs (as defined in 42 U.S.C.
Section 1320a – 7b(f)) (“Federal Health Care Programs”).

2.6.     Employee and Independent
Contractor Qualifications. Personnel assigned by CHR for the performance of
the Services shall be fully trained, competent and skilled.

 

3

 

CHR shall (i) maintain at all times adequate personnel
to perform the Services, and (ii) ensure that all such staff are not excluded
from participation in Federal Health Care Programs. CHR shall implement and
maintain a program to verify that the employees and independent contractors utilized
by CHR in connection with the provision of the Services are not excluded from
participation in Federal Health Care Programs. CHR shall make available to
Talecris upon Talecris reasonable request documentation of all applicable
licenses and certificates prior to execution of this Agreement. CHR shall
obtain appropriate assurance that persons employed or engaged by any
subcontractors to furnish Services hereunder shall have and maintain such
applicable licenses and certifications. CHR shall, at CHR’s expense, perform
appropriate criminal background screening and reference checks prior to hiring
any employee or engaging any independent contractor. CHR shall adequately train
all of its personnel associated with the Program in the applicable disorders as
well as in the provisions of its Standard Operating Procedures (the “SOPs”).

2.7.     Compliance
with Law and Policies. Talceris shall provide Product to CHR and CHR shall
provide the Services in accordance with applicable state and federal laws and
regulations, and applicable reasonable Talecris policies and procedures
furnished to CHR (the “Talecris Policies”). With respect to its subcontractors
hereunder, each of Talecris and CHR shall require that such subcontractors
provide Services hereunder in accordance with applicable state and federal laws
and regulations, and the Talecris Policies.

2.8.     Standard
Operating Procedures. During the Term, CHR shall maintain competent and
trained staff as required in order to meet current and anticipated Patient
requirements. CHR shall modify its SOPs in order to satisfy Talecris’
reasonable requirements. CHR shall maintain minimum operational standards as
agreed by the Parties and set forth in this Agreement and the SOPs. CHR shall
develop any required additional SOPs for approval by Talecris, which approval
shall not be unreasonably withheld, delayed or conditioned. CHR shall operate
the Program in accordance with such approved SOPs.

2.9.     Security and Security
Audits. CHR shall make all necessary upgrades to its facility in order to
satisfy Talecris’ reasonable needs and the Standards of Specialty Pharmacy and
all other applicable federal, state and local laws and regulations. A qualified
third party shall, at CHR’s expense, conduct a complete security assessment
(the “Security Assessment”). CHR shall provide the results of the Security
Assessment to Talecris. CHR shall bear all costs associated with complying with
the recommendations set forth in the Security Assessment and Talecris’
reasonable needs. Talecris will have the right to perform audits within the
facility and pharmacy areas. In addition, CHR will establish and document
procedures reasonably acceptable to Talecris to ensure the physical security of
the premises and products related to the Services, as well as the security and
confidentiality of information and intellectual property used in connection
with the Services. CHR shall provide such documented procedures to Talecris
upon Talecris’ reasonable request.

 

4

 

2.10.   Safety Standards.  CHR shall comply with all applicable safety
requirements and standards mutually agreed by the Parties and/or required by
applicable laws. CHR will maintain current safety procedures and train all
personnel to comply with such standards.

2.11.   Quality Control.  CHR shall comply with all applicable quality
control standards and requirements agreed by the Parties. In addition, CHR
shall maintain a continuous quality improvement process and will share this
process with Talecris for review and comment.

2.12.   Information Database.  CHR shall maintain a secure database of all
Patient information. Prior to disclosing any Patient information to Talecris,
CHR shall first de-identify such information in accordance with applicable
standards set form in privacy rules promulgated pursuant to the Administrative
Simplification provisions of the Health Insurance Portability and
Accountability Act of 1996 (“HIPAA”). CHR shall make available to Talecris,
upon the request of Talecris, aggregated de-identified patient information
related to Patients.

2.13.   Change in Services.  In the event either Party wishes to make
changes to the Services, which may involve: (i) an increase or decrease in the
number of personnel required; (ii) a material change in the scope of Services;
or (iii) other changes which may affect the fees and/or schedule for
performance of Services, the terms of such changes will be incorporated in a
written amendment to this Agreement, signed by both Parties.

2.14.   Benchmarking.  CHR is committed to “Best in Class” service.
To ensure delivery of such service, Talecris shall have the right, at its
expense, to have the performance of, or the costs and expenses for, all or a
portion of the Services reviewed by an independent industry-recognized benchmarking
service provider organization with demonstrated benchmarking expertise
reasonably acceptable to CHR (the “Benchmarker”) in order to evaluate the
efficiency, effectiveness and productivity of CHR’s performance of the Services
and whether the costs and expenses are competitive in the industry. The
Benchmarker shall be selected by Talecris and approved by CHR, such approval
not to be unreasonably withheld, conditioned or delayed. Talecris shall have
the right to disclose the terms of this Agreement to the Benchmarker in
connection with obtaining such review. CHR shall cooperate with the
Benchmarker, including, as appropriate, making available knowledgeable
personnel and pertinent documents and records. The Benchmarker shall be subject
to a confidentiality agreement similar to the confidentiality provisions set
forth in this Agreement. Each Party shall be provided a reasonable opportunity
to review, comment on and request changes in the Benchmarker’s proposed
findings. Following such review and comment, the Benchmarker shall issue a
final report of its findings and conclusions. If, in the final report of the
Benchmarker, the benchmarked Services are not in the top ten percent (10%) of
the representative sample (viewed from the reasonable perspective of Talecris),
then CHR shall within thirty (30) days after issuance of the Benchmarker’s
final report, either: (a) provide Talecris with written notice that CHR accepts
such final report; or (b) provide

 

5

 

Talecris with written
objections to such final report. If no written acceptance or objections are
received within such thirty (30) day period, the final report shall be deemed
accepted. If CHR accepts such final report, CHR promptly shall develop a plan
and schedule, subject to the approval of Talecris, which approval shall not be
unreasonably withheld, delayed or conditioned, to bring CHR within the top ten
percent (10%) in a reasonable period of time. CHR then shall implement the plan
and achieve the top ten percent (10%) in the designated period of time. If CHR
does not accept the report and instead provides written objections, Talecris
and CHR shall use commercially reasonable efforts to resolve such objections.
If Talecris and CHR cannot resolve such objections within fifteen (15) days
following Talecris’ receipt of such objections, then the Parties shall resolve
the dispute in accordance with the terms of Section 22.

 

2.15. Key Performance Indicators.  CHR shall perform its obligations under this
Agreement pursuant to the performance metrics set forth in the “Key Performance
Indicators,” attached hereto and incorporated herein by reference at Exhibit
B. The remedies for CHR’s failure to meet the Key Performance Indicators
are set forth in Exhibit B.

3. PRODUCT CONSIGNMENT, DISTRIBUTION AND
ADMINISTRATION.

3.1.     General.  Talecris shall furnish Product to CHR on a
consignment basis for dispensing to Patients.

3.2.     Transfer
of Title:-Risk of Loss.  Risk of loss
with respect to Talecris Consigned Inventory shall pass from Talecris directly
to CHR when CHR accepts Talecris Product as evidenced by a delivery receipt
signed by CHR. CHR shall have two (2) Business Days after delivery in which to
accept or reject the Product. CHR shall not take title to any Product. Title to
Talecris Consigned Inventory shall pass directly from Talecris to the Patient,
hospital or physician at the time the Products are received by such Patient,
hospital or physician. CHR shall utilize a system that will record receipt,
inventory levels, and shipments on a Product-by-Product basis. CHR shall
provide to Talecris month-end reports reflecting such activity for the month
and the month-end inventory balance. Upon Talecris’ reasonable request, CHR
will make daily inventory status information available to Talecris. Upon the
termination or expiration of this Agreement, CHR shall return to Talecris all
Talecris Consigned Inventory in the possession of CHR, in accordance with
proper handling instructions. Such return will be at the expense of Talecris.

3.3.     Damaged Products.  CHR shall be responsible for the cost of any
Talecris Consigned Inventory that is damaged as a result of CHR actions,
including, without limitation, improper storage, damage during packing,
mishandling of Product, failure to label, pack, ship, or store Products in
compliance with labeled manufacturer’s storage requirements, or for theft or
shrinkage of Product that occurs while in CHR’s facilities or possession and
control. CHR also shall be responsible for the cost of any Talecris Consigned
Inventory that is: (i) shipped to the wrong address by CHR, or (ii) not
packaged or shipped according to the mutually agreed

 

6

 

upon shipping procedure.
Payment to Talecris by CHR for Product that is lost or damaged while in CHR’s
possession or care will be based on the then current wholesale price for the
Product. CHR is not responsible for the cost of Product returned by Patients.

 

3.4.     Ownership
of Products.  All Products consigned
to CHR by Talecris hereunder will be and remain at all times under and subject
to the ownership of Talecris until such Products are sold to Patients. CHR will
promptly execute and deliver to Talecris such documents and take such action as
Talecris may reasonably request in order to fully protect Talecris’ interest in
the Talecris Consigned Inventory in accordance with the Uniform Commercial Code
as enacted in North Carolina, or other applicable law, including without
limitation, the filing of financing and continuation statements. CHR hereby
authorizes Talecris or its agents to execute on its behalf any and all
necessary documents to affect any such filings (including the filing of any
such financing or continuation statement) without further authorization of CHR.
As it may be required by applicable law, CHR grants a security interest to
Talecris, as a secured party, in any and all right, title and interest which
CHR now or may hereafter have in the Talecris Consigned Inventory.

3.5.     Physical
Inventory.  Upon Talecris’ reasonable
request, but no less than once per year, CHR shall take and report a physical
inventory of the Talecris Consigned Inventory. Such request shall be honored in
a timely fashion. Talecris will reimburse CHR for its reasonable out-of-pocket
costs incurred to take such physical inventory. Talecris may, in its sole
discretion and at its sole cost, elect to either observe the physical inventory
being conducted or be represented by a third-party accounting firm.

3.6.     Timely
Shipment of Products to Patients.  Talecris
shall use commercially reasonable efforts to ensure that CHR has adequate
inventory of Products to respond to Patient demands. CHR shall ensure that such
inventory is dispatched to Patients in a timely manner. For all Products
available in the Talecris Consigned Inventory and available for shipment, CHR
will ensure that shipment to Patients are made within one (1) Business Day,
except as a Patient otherwise directs, or as soon as practicable, after
acceptance of the order by CHR, provided that CHR has: (i) obtained proper
authorization therefor from the Patient’s physician; (ii) obtained all
information necessary in order to complete the Intake Form and insurance
verification form in a manner satisfactory to CHR; (iii) completed the
requirements set forth in Section 2 and Exhibit A; (iv) received proper
prior authorization from the applicable Payor; and (v) retained the services of
appropriately credentialed nursing services providers or other subcontractors
as necessary to provide such Services, as applicable.

3.7.     Dispensing of Talecris
Consigned Inventory.  Unless
otherwise agreed by the Parties, in addition to the other requirements of this
Section 3 and Exhibit A applicable to Talecris Consigned Inventory, CHR
shall dispense Products from the Talecris Consigned Inventory to Patients on a
first-come, first-served basis after prior authorization is received.

 

7

 

3.8.     Regulatory Action.  CHR shall timely advise Talecris in writing
of any regulatory action directly related to CHR’s shipping of Products from
its facilities, including without limitation, any government agency inspection
and subsequent remedial action taken by CHR in response. CHR shall also timely
advise Talecris in writing of any problems at its facilities related to the
Products, including without limitation, fulfillment errors, and any other
action or omission that did, or could reasonably be expected to, adversely
affect the safety, efficacy or salability of any of the Products, together with
a statement of all corrective or remedial action taken.

 

3.9.     Government
Inspections.  If the U.S. Food and
Drug Administration (“FDA”) or any other governmental authority (a “Regulatory
Authority”) conducts an inspection at CHR’s facility, seizes any Product and/or
any of CHR’s materials, requests a recall of any Product, or notifies CHR of
any violation or potential violation of any applicable law, CHR shall notify
Talecris immediately, and CHR shall take such actions as may be reasonably
instructed by Talecris and are in compliance with applicable law. As
applicable, CHR shall promptly send any reports relating to such inspections,
recalls or violations or potential violations of law to Talecris. In the event
that any Regulatory Authority makes any request with respect to, but does not
seize, the Product in connection with any such inspection, CHR, as the case may
be (i) shall promptly notify Talecris of such request, (ii) if possible, shall
satisfy such request only after receiving Talecris’ approval, which approval
shall not be unreasonably withheld, delayed or conditioned (iii) shall follow
any reasonable procedures required by Talecris in responding to such request
and (iv) shall promptly send any samples of the Product requested by the
Regulatory Authority to Talecris.

3.10.   Recall. 
In the event (i) any Regulatory Authority issues a request, directive or
order that the Products be recalled, or (ii) a court of competent jurisdiction
orders such a recall, or (iii) Talecris reasonably determines that the Products
should be recalled for any reason, the Parties shall take all appropriate
corrective actions. Except to the extent that the reason for the recall relates
to CHR’s failure to store or distribute the Products properly or failure to
perform its obligations under this Agreement, Talecris shall be responsible for
all the expense of recalling the Products (e.g., shipping charges, man-hours
spent arranging and coordinating recall). Talecris will be responsible for all
returns and all aspects of any recall except as provided herein. Procedures for
handling returns will be covered by communications from CHR to Talecris.

3.11.   Patient Complaints.  CHR shall notify Talecris in writing within
four (4) days of initial receipt of any information CHR receives regarding the
safety or efficacy of the Product (except with respect to Adverse Events, which
shall be governed by Section 3.12 below). CHR shall notify Talecris of any
complaint or investigation relating to the Product promptly upon receipt by
CHR; provided that all complaints concerning suspected or actual Product
tampering, contamination or mix-up (e.g., wrong ingredients) shall be delivered
to Talecris within twenty-four (24) hours of receipt. CHR shall provide all
assistance reasonably requested by Talecris in investigating customer
complaints regarding the Product that, in Talecris’ reasonable

 

8

 

opinion, are related to
or arise from CHR’s distribution of the Product or other performance of the
Services. Talecris shall determine and notify CHR of the appropriate response
to Patients’ complaints, and CHR shall be responsible for providing such
response to all Patients and the record keeping relating thereto.

 

[Illegible]
Adverse Events.  With respect to any
Product, CHR shall notify Talecris in accordance with the applicable SOP
promptly following its receipt of information of a possible Adverse Event. To
the extent an Adverse Event of which CHR becomes aware implicates the
manufacture or distribution of the Product, CHR shall promptly inform Talecris
of such Adverse Event and shall disclose to Talecris any information it has
regarding that Adverse Event. The parties shall investigate all reports of an
Adverse Event in order to assure the safety and efficacy of the Products. The
Parties shall act promptly and shall cooperate fully in such investigations.

4. INDEPENDENT CONTRACTOR.

4.1.     General.  In rendering Services hereunder, CHR shall
act as an independent contractor and not as an employee, agent or authorized
representative of Talecris. Although CHR will receive generalized instruction
from Talecris as to the performance of Services; hereunder, Talecris will not
control or supervise the specific methods to be used or the sequence of tasks
to be performed by CHR in the execution of its duties hereunder. CHR shall have
no authority to make or influence managerial or policy decisions of  Talecris, nor to bind Talecris to any
contract, agreement or obligation. The acts of CHR shall in no way constitute
the acts of Talecris, and CHR shall not represent to any third party that CHR
has any express or implied authority to bind Talecris to any contract,
agreement or obligation.

4.2.     Income
Taxes.  No amounts payable by
Talecris under this Agreement shall be considered salary for pension and
incentive compensation purposes. Furthermore, no CHR personnel shall be
entitled to any fringe or supplemental benefits of regular employees of
Talecris. CHR shall bear all responsibility and liability for the payment of
all federal, state and local income taxes due on money received from Talecris
under this Agreement and filing all appropriate tax returns and other forms
with respect thereto. Moreover, CHR shall be solely responsible for (i) payment
of all compensation to its employees, (ii) all health and/or disability
insurance, retirement benefits, and other welfare or pension benefits to which
its employees may be entitled and (iii) all employment taxes and withholding
with respect to its employees. CHR agrees to indemnify and hold Talecris, its
officers, directors, employees, shareholders and agents harmless from and
against any and all such liabilities or claims including, but not limited to,
interest assessed or penalty and reasonable attorneys fees incurred, arising
from CHR’s failure to pay such tax.

5. COMPENSATION.

5.1.     Monthly Invoicing.  During the Initial Term (as defined in
Section 10.1), CHR shall invoice Talecris on a monthly basis for the Services
provided during the previous month, according to the pricing set forth in Exhibit
C, attached hereto and

 

9

 

incorporated herein by
reference (the “Pricing Schedule”). CHR shall maintain adequate records to
support hours claimed and shall make such records available to Talecris upon
reasonable request. If this Agreement is renewed after the Initial Term,
pricing for the first Renewal Term (years 4 and 5) shall be as set forth in the
Pricing Schedule. Pricing for each of the second and third Renewal Terms, if
applicable, shall be negotiated in good faith by the Parties prior to the time
of such renewal.

 

5.2.     Payment
Terms.  Payment is due thirty (30)
days from the date of each invoice.

5.3.     Taxes.
Talecris shall bear all responsibility and liability for all sales, use,
excise, services, consumption, and other taxes and duties associated with the
provision of Services to Patients.

6. EXCLUSIVITY.

6.1.     Alpha
1 Programs.  CHR and its affiliates
shall not administer any other manufacturer-sponsored pharmacy direct program
related to any other Alpha-1 replacement therapy or distribute any wholesale
product related to Alpha-1 replacement therapy other than Products without
prior written agreement of Talecris, except that, in a medical emergency in
which a medical doctor determines that a Patient requires product other than
Products, the Parties may agree to allow CHR to purchase and distribute such
other prescribed product to such Patient, such agreement not to be unreasonably
withheld, delayed or conditioned. Talecris shall establish a target number of
Patients for the Program, which the Parties may adjust upon mutual agreement.
Once the agreed target number for the Program is reached, the Parties may
consider other Alpha-1 replacement therapy products for distribution by CHR,
with agreement on specified targeted growth rate of any such program.

6.2.     Other
Talecris Programs.

6.2.1.   IG.  Beginning on the Effective Date, CHR shall
transition approximately twelve (12) IG Patients from Talecris’ current service
provider, and CHR shall provide Services to such IG Patients according to
terms, including pricing, to be agreed by the Parties in writing. Talecris
shall provide support to CHR for CHR’s development of a health management
program for IG patients (the “IG Program”) to be launched under Talecris DirectSM
within a year following the Effective Date. Such support shall include, without
limitation, assisting with funding for the IG Program. The IG Program shall be
conducted subject to the terms of this Agreement with operational details specialized
to immunodeficiency patients, as mutually agreed by the parties in writing.
Talecris shall make available a minimum of 7500 grams of Gamunex® per month for
direct to Patient distribution in the IG Program once the IG Program is
launched. From and after the launch of the IG Program, except as otherwise
agreed by the parties in writing, the term “Services” as used in this Agreement
shall be deemed to include services provided in connection with the IG Program,
the term

 

10

 

“Products” as used in
this Agreement shall be deemed to include IG products supplied by Talecris to
CHR and the term “Patients” shall be deemed to include patients registered in
the IG Program, provided that Exhibits A, B and C of this Agreement shall not
apply to the IG Program. All information, data and materials relating to the IG
program will be segregated from all information, data and materials relating to
the Program and all other health management programs conducted by CHR.

 

6.2.2.   Other Products.  To the extent that the Parties contract for
programs for other Talecris products, such programs will be performed on an
exclusive basis under substantially similar terms, with such mutually
acceptable changes as are required by the differences in the programs, and all
information, data, materials and service personnel relating to such additional
program(s) will be segregated from all information, data, materials and service
personnel relating to the Program and the IG Program.

6.3.     Distribution
of Products.  So long as Talecris
consumers and customers utilize all of Talecris’ production of Product, CHR
shall be the sole distributor of Product in the United States of America,
subject to any requirement under the Veteran’s Health Care Act of 1992 that
Talecris furnish Products directly to government purchasers. Special
circumstances may arise where mutual consent between Talecris and Centric will
allow for modification to this Section in accordance with Section 25.

7.
RIGHTS OF FIRST REFUSAL

7.1.     Excess
Inventory.  In the event that excess
inventory exists as reasonably determined by Talecris management, CHR has the
right of first refusal to purchase any or all of the excess at the published
wholesale price list at the time of Product availability. CHR will insure the
integrity of the Product specifications until sale of such Product to an end
user and will provide to Talecris a report indicating the end user of the
Products by non-Patient identifiable indicators (e.g., zip code data, institution).
In distributing Products purchased from Talecris, CHR shall not use
sub-distributors or otherwise subcontract the distribution of the Product or
sell the Product for further resale without the prior written consent of
Talecris. Products sold to CHR are intended only for administration to
Patients. CHR shall provide written notification to customers of such
restrictions. CHR shall make a reasonable effort to monitor purchases of
Products by customers to detect purchases that appear to exceed the reasonably
anticipated needs of any such customers. If CHR detects excess purchases, CHR
shall investigate. If CHR determines that a customer is re-selling Product, CHR
shall limit sales to such customer to amounts reasonably required to satisfy
the needs of such customer’s Patients. CHR shall reasonably cooperate with
Talecris in the assessment and development of additional measures designed to
enhance the traceability of Product to its ultimate disposition.

7.2.     Services for Other Product
Lines.  Unless and until Talecris
has, through an equity investment in CHR, representation on the CHR Board of
Directors, Talecris will

 

11

 

have the right of first
negotiation and a first right of refusal to provide the sole source of supply
of product lines other than the Product and/or provide investment capital for
such proposed business expansion (the “Services Option”). The Services Option
shall apply to all product line provided by Talecris including, without
limitation, IG, plasma derived factor VIII, hyperimmunes, albumin and any other
product line owned by Talecris.

 

7.2.1.   Notification. 
CHR will notify Talecris in writing of any plans by CHR or any of its
Affiliates to render services for other product lines provided by Talecris
(“New Product Services”) before (a) seeking financing or investment capital for
the purpose of expanding CHR’s business to include New Product Services or (b)
providing any New Product Services to any third party. Without limiting the
generality of the foregoing, CHR shall promptly notify Talecris in writing in
the event that: (i) CHR proposes to solicit offers to provide or enter any
arrangement with a third party to provide New Product Services, (ii) CHR
proposes to solicit or obtain financing or investment capital to support New
Product Services; or (iii) CHR receives any offer from a third party (whether
solicited or unsolicited) relating to the provision of, or investment capital
for, New Product Services, which CHR desires to accept or with respect to which
CHR desires to enter into further negotiations. In the event that CHR receives
such an offer from a third party, the notice provided to Talecris pursuant to
this Section 7.2.1 shall include; (x) the terms of the offer, including
financial terms; (y) the name of the third party; and (z) an offer to negotiate
with Talecris on the same terms.

7.2.2.   Negotiation. 
Upon receipt of any notice described in Section 7.2.1 above, at
Talecris’ option, the parties shall negotiate in good faith the terms of an
agreement between CHR and Talecris, whereby either: (a) CHR would provide New
Product Services to Talecris and Talecris would provide the sole source of
supply for the products that are the subject of the New Product Services; or
(b) Talecris would provide investment capital for CHR to provide New Product
Services to Talecris or to a third party. The negotiation period shall continue
for ten (10) days following Talecris’ receipt of the notice described in
Section 7.2.1 (the “Services Negotiation Period”). The parties shall use this
Agreement as a model for any Services Agreement relating to the New Product
Services with mutually acceptable changes as required by differences in the
products.

7.2.3.   Right of First Refusal.  In the event that: (a) Talecris does not
elect to negotiate the terms of an agreement with CHR relating to New Product
Services; or (b) Talecris and CHR are unable to execute a Services Agreement
for New Product Services or an agreement relating to investment capital for New
Product Services within the Services Negotiation Period, then CHR may negotiate
the terms of an agreement with a third party to provide New Product Services or
to obtain such investment capital.

 

12

 

8. FINANCIAL COVENANTS

 

8.1.     Cash
On Hand; Borrowing Capacity. Beginning on the date of the execution of the
New Loan Agreement (as defined in Section 8.3 below) and the delivery of
Talecris’ guaranty thereof and continuing throughout the Term, the sum of CHR’s
cash and borrowing capacity shall equal or exceed the projected subsequent
three (3) month’s operating expenses of CHR. In the event that CHR does not
meet the foregoing financial covenant, Talecris sole remedy shall be, at
Talecris’ option: (a) to assist CHR in establishing additional debt financing
for CHR in amounts adequate to allow CHR to comply at all times with the foregoing
financial covenant on terms and conditions mutually and reasonably acceptable
to Talecris and CHR; or (b) to terminate this Agreement for material breach in
accordance with the termination provisions of Section 10.3.

8.2.     Monthly
Reports. CHR shall provide to Talecris monthly reporting of compliance with
the foregoing financial covenant with all data certified by the CHR’s CFO and
supported with adequate detailed schedules. Such reports shall be due on or
before the 15th day of each subsequent month.

8.3.     Anticipated
Loan. CHR currently has a loan from Wachovia Bank, N.A. (“Wachovia”) under
an existing loan agreement (the “Loan Agreement”). CHR is negotiating
additional terms for a new or amended Loan Agreement and it is anticipated that
CHR and Wachovia will enter into one or more mutually acceptable new or
amended, loan agreements with respect to a new or increased loan from Wachovia
(the “New Loan Agreement”) that shall be guaranteed by Talecris on terms
reasonably acceptable to Talecris. The parties agree that any material breach
of the Loan Agreement or the New Loan Agreement by CHR shall be deemed a
material breach of this Agreement; provided however, that the Parties
acknowledge that the passage of time in negotiating this Agreement will prevent
CHR from satisfying the covenant in the Loan Agreement that CHR be profitable
by the end of 2005 and that a breach or waiver of breach of that covenant shall
not be a breach of this Agreement.

9. EQUITY ISSUANCE.  As consideration for a cash payment of
$164,000, pricing levels in the Agreement, the partial and several loan
guaranty be Talecris and certain minority equity holder protections given Talecris,
on or before August 31, 2005, CHR agrees that it will issue to Talecris an
equity interest in CHR with substantially the rights and economic interests set
forth in Exhibit D to this Agreement. In connection with the equity
issuance, Talecris will provide a guaranty of the New Loan Agreement on terms
reasonably acceptable to Talecris. Also in connection with the issuance of the
equity interests, (a) CHR will reorganize as a Delaware corporation, taxed as a
C corporation, (b) CHR will adopt a shareholders’ agreement mutually
satisfactory to both Parties, including its existing Members as shareholders,
(c) Talecris and CHR will enter into a securities issuance and registration
rights agreement that is mutually satisfactory to both parties and (d) Talecris
will execute and deliver to CHR’s existing bank lender a guaranty of CHR’s loan
agreement, with the guaranty and the loan agreement each in a form mutually
satisfactory to Talecris, CHR, and the bank lender.

 

13

 

10. TERM AND TERMINATION.

 

10.1.   Term. 
The initial term of this Agreement shall begin on the Effective Date and
shall continue until November 28, 2008 (the “Initial Term”), unless earlier
terminated by either party as hereinafter provided. Talecris may elect to renew
this Agreement for up to three (3) successive two-year terms (each a “Renewal
Term”) upon prior written notice from Talecris to CHR of not less than ninety
(90) days before the end of the Initial Term or any Renewal Term.

10.2.   Termination. 
During the Initial Term, either party can terminate this Agreement only
for cause, pursuant to Section 10.3 below (and in the case of termination by
Talecris, pursuant to Section 17.3 below). During each Renewal Term, Talecris
shall have the additional right to terminate this Agreement on ninety (90) days
prior written notice without cause.

10.3.   Termination for Cause.

10.3.1.      Failure to Issue Equity.  Talecris shall have the right to terminate
this Agreement upon written notice for cause in the event that CHR does not
issue equity to Talecris in accordance with the terms of Section 9 of this
Agreement on or before September 15, 2005.

10.3.2.      Breach of BAA.  Talecris shall have the right to terminate
this Agreement for cause in accordance with the terms of that certain Business
Associate Addendum attached hereto and incorporated by reference as Exhibit
E (the “BAA”).

10.3.3.      Material Breach.  This Agreement may be terminated by either
party for material breach by the other party that remains uncured thirty (30)
days following receipt of written notice of such breach.

10.3.4.      Insolvency.  This Agreement may be terminated by either
party immediately upon notice if the other party: (a) files a petition in
bankruptcy under federal or state bankruptcy laws which case or proceeding is
not dismissed or vacated within sixty (60) days, (b) becomes insolvent, (c)
makes any assignment for the benefit of creditors, or (d) has a receiver
appointed for it.

10.4.   Effect of Termination.  Upon the termination or expiration of this
Agreement:

10.4.1.      Exit Assistance Services.  CHR shall perform Exit Assistance Services in
accordance with the Exit Plan;

10.4.2.      Consigned Inventory of
Products.  CHR shall return to
Talecris all Talecris Consigned Inventory in the possession of CHR in
accordance with the Exit Plan. In the event of a termination by CHR for cause
or a termination by Talecris without cause, such return of Talecris Consigned
Inventory will be at the expense of Talecris. In the event of a termination

 

14

 

by Talecris for cause,
such return of Talecris Consigned Inventory will be at the expense of CHR. Upon
delivery and receipt of the Consigned Inventory and completion of the Services,
Talecris shall pay CHR, as expeditiously as is practicable, for the Services
performed to the reasonable satisfaction of and accepted by Talecris as of the
date of termination, according to the applicable rates under the terms of this
Agreement. All moneys or accounts receivable arising from sales made by CHR
prior to such expiration or termination will be promptly paid over or assigned
to Talecris.

 

10.4.3.      Termination of Services.
Except as set forth in the Exit Plan, CHR shall immediately cease work as
provided in the notice of termination, and shall cease to represent itself as
providing services to Talecris; and

10.4.4.      Restrictive Covenant.
In the event that Talecris terminates this Agreement for cause or CHR
terminates this Agreement without cause, CHR and its Affiliates and any successor
entity or any entity in which certain designated employees identified in Exhibit
F (the “Designated Employees”) are employed or have an ownership interest
shall not administer any such program or engage in the sale or provision of
services or products competitive to Talecris’ business in the United States of
America and its territories and military installations for a period of one (1)
year following the effective date of termination.

10.4.5.      Survival. The
provisions of Sections 1, 3.2, 3.11, 3.12, 4.2, 10.4, 11, 12, 13, 15.2.3, 19,
21, 22, 23, 24, 25, 26, 28, 29, 30, 31, 32, 33 and 34 shall survive the
expiration on termination of this Agreement.

11. CONFIDENTIALITY.

11.1.   Definition of Confidential
Information. As used in this Agreement, the term “Confidential Information”
shall mean any and all trade secrets and other confidential information
disclosed by a party (the “Disclosing Party”). “Confidential Information” shall
include, without limitation, any information concerning the Disclosing Party’s
business plan, processes and methods, product or process specifications and
designs, inventions, technical know-how, business and marketing plans,
financial information, customer data, research and development activities and
other materials or information relating to its business or activities which are
not generally known to the public, all confidential information of
third-parties in the possession of the Disclosing Party; and all notes,
analysis, compilations, studies, summaries and other material prepared by or
for the Disclosing Party containing or based, in whole or in part, on any
information included in the foregoing. The term “Confidential Information”
shall not include any information that is (i) publicly known or becomes
publicly known through no unauthorized act by the party receiving or accessing
the Confidential Information (the “Receiving Party”) or on the Receiving
Party’s behalf, (ii) rightfully received from a third party without an

 

15

 

obligation of
confidentiality to the Disclosing Party with respect to the information
received, or (iii) approved by the Disclosing Party for disclosure.

 

11.2.   Non-Disclosure. During the Term of this
Agreement and thereafter the Receiving Party shall keep the Disclosing Party’s
Confidential Information in the strictest confidence (whether such Confidential
Information was disclosed to the Receiving Party before, on or after the
Effective Date) and shall not disclose, or permit the disclosure of, any
Confidential Information to any third party without the prior consent of the
Disclosing Party. The Receiving Party shall not use, or permit the use of, any
Confidential Information, without the prior consent of the Disclosing Party,
for any purpose other than in connection with the proper performance of the
Receiving Party’s obligations under this Agreement. The Receiving Party shall
use its best efforts to prevent any inadvertent disclosure or unauthorized
reproduction or use of the Confidential Information. The Receiving Party will
immediately advise the Disclosing Party in writing if the Receiving Party
becomes aware of any misappropriation or misuse by any person of the Disclosing
Party’s Confidential Information. Notwithstanding the foregoing, the Receiving
Party may disclose the Confidential Information of the other party to the
extent such Confidential Information is required to be disclosed pursuant to a
requirement of a Regulatory Authority or law, provided that: (a) the Receiving
Party has given the Disclosing Party prior written notice of such disclosure
and takes all available steps to maintain the confidentiality of the
information disclosed; and (b) the Disclosing Party has been afforded a
reasonable opportunity to contest the necessity and scope of such disclosure.
The Receiving Party acknowledges and agrees that the Disclosing Party considers
the Confidential Information to be valuable, confidential and a trade secret.
The Receiving Party shall promptly return to the Disclosing Party, in good
order, the originals and all copies of Confidential Information, regardless of
the medium in which they are stored, upon the termination or expiration of this
Agreement or at any other time upon the reasonable request of the Disclosing
Party.

11.3.   Confidential Information Relating to the Program.
Without limiting the generality of the foregoing the following terms shall
apply to Talecris’ Confidential Information relating to the Program:

11.3.1.      CHR shall limit the
disclosure of Talecris’ Confidential Information relating to the Program to
only members and managers of CHR; those of its personnel with a need to know
such information and who are subject to a written confidentiality agreement at
least as protective of Talecris’ Confidential Information as the terms of this
Section 11; and to professional advisers of CHR.

11.3.2.      CHR shall segregate and keep
all Confidential information relating to the Program separate from (i) other
Confidential Information of CHR, (ii) other Confidential Information of
Talecris not related to the Program, and (iii) the confidential information of
third parties.

 

16

 

11.3.3.      CHR shall keep the terms of
that certain Term Sheet, executed by the parties on or about July 29, 2005 (the
“Term Sheet”) and the terms of this Agreement confidential in accordance with
the terms of this Section 11.

 

11.3.4.      Any information about the
Program or the IG Program to be disclosed by CHR to Talecris shall be disclosed
only to a Program Manager designated in writing by Talecris and not to any
other Talecris employees.

11.4.   HIPAA. In addition to the obligations set
forth in Sections 11.1 through 11.3 above, the parties shall execute the BAA
concurrently with the execution of this Agreement. Notwithstanding anything to
the contrary in this Agreement, all patient information covered by HIPAA shall
be treated in accordance with the terms of the BAA.

12. INTELLECTUAL PROPERTY.

12.1.   Developments. Subject to Section 12.3 below,
CHR shall own all inventions, processes, know-how, enhancements, trade secrets
and other intellectual property developed by CHR and used by CHR in the course
of providing the Services to Talecris or in connection with any health
management program developed by CHR (collectively, “Developments”), provided
that: (a) Talecris shall own all Data (as defined in Section 12.2 below); and
(b) CHR shall grant to Talecris, and hereby grants to Talecris, a perpetual,
irrevocable fully paid-up, royalty-free, non-exclusive, transferable, right and
license for Talecris, its agents, contractors and assigns to use, copy, modify
and create derivative works of the Developments in connection with the
management of the Program and the provision of the Services by Talecris or its
contractors.

12.2.   Data. CHR acknowledges and agrees that
Talecris shall own and have access at all times to all data relating to the
Program, the IG Program and the provision of the Services under this Agreement
(collectively, the “Data”). Notwithstanding the foregoing, any Data to be
accessed by Talecris shall first be de-identified by CHR in accordance with
applicable standards set forth in privacy rules promulgated pursuant to the
Administrative Simplification provisions of HIPAA. CHR shall make available to
Talecris, upon the request of Talecris, aggregated de-identified patient
information related to Patients.

12.3.   Pre-Existing Materials.
Each Party shall retain ownership to all pre-existing and independently
developed intellectual property of such Party. Except as agreed otherwise in
writing, to the extent that any pre-existing or independently developed
intellectual property is used by CHR in the course of managing the Program or
providing the Services, CHR shall grant, and hereby grants, to Talecris a
perpetual, irrevocable, fully paid-up, royalty-free, non-exclusive,
transferable right and license (or in the case of third party materials,
sublicense) for Talecris or its agents or assigns to use, copy, modify and
create derivative works of the Developments in connection with the management
of the Program and the provision of the Services by CHR or its contractors.

 

17

 

13. AUDITS.  At Talecris’ expense, subject to applicable
laws including those governing patient confidentiality, Talecris shall have the
right during the Term and for three (3) years after the expiration or
termination of this Agreement to audit CHR’s financial information pertinent to
verification of CHR’s compliance with the financial covenants and transactional
details in connection with the Services provided in this Agreement. So long as
CHR is in compliance with financial and operational covenants, such audits
shall be limited to once per year. In the event of any breach by CHR of any
covenant or other term of this Agreement, Talecris shall have the right to
audit CHR’s financial records and transactional details relating to the
Services at any time on thirty (30) days prior written notice.

 

14. COMPLIANCE WITH LAW.  Each of Talecris and CHR shall have obtained
and maintain all applicable material, professional and institutional licenses
and certifications required by federal and state laws and professional boards
having jurisdiction over the Services to be provided hereunder. In providing
the Product and performing the Services, as applicable, each of Talecris and
CHR will comply with all applicable federal; state and local laws and
regulations, including without limitation, all applicable regulations and rules
relating to HIPAA, as well as drug manufacturing, pharmacy, health care provider
and insurance laws. Further, CHR shall comply with the terms of the BAA. Each
of Talecris’ and CHR will make available to the other documentation of all
licenses, certificates, and subcontractor agreements prior to the execution of
this Agreement and upon reasonable request thereafter. CHR shall ensure that
all regulatory filings and submissions made in connection with the Services are
made on a timely basis and are available for review by Talecris upon Talecris’
reasonable request. Talecris shall ensure that all regulatory filings and
submissions made in connection with the manufacture of the Product are made on
a timely basis and are available for review by CHR upon CHR’s reasonable
request. CHR shall be solely responsible for, and Talecris shall have no
responsibility or liability for, ensuring that this Agreement and the
performance of the Services comply with HIPAA and with applicable reimbursement
and licensing laws, rules and regulations pertaining to specialty pharmacies
and pharmacy benefits managers. At any time upon fifteen (15) days notice to
CHR, Talecris shall have the right to inspect the premises where the Services
are performed in order to evaluate CHR’s compliance with its obligations under
this Agreement, including without limitation, its obligations with respect to
quality, safety, security and compliance with law.

15. TRADEMARKS.

15.1.   CHR Trademarks.  Talecris shall, at its expense, market and
promote the Talecris Direct program. In all such marketing and promotional
materials, Talecris shall disclose the extent to which Services are provided by
CHR.

15.2.   Talecris Trademarks.

15.2.1.      During the Term of this
Agreement, Talecris grants to CHR the non-exclusive, royalty-free right and
license to use the following trademarks: TALECRIS DIRECT, PROLASTIN, TALECRIS
BIOTHERAPEUTICS, TALECRIS CARES (collectively, the “Talecris Trademarks”) in
the United States of America solely for the purpose of performing the Services
and distributing the Products to Patients in accordance with this Agreement.
CHR shall afford Talecris reasonable opportunities during the

 

18

 

Term hereof to inspect
and monitor the activities of CHR in order to ensure CHR’s use of the Talecris
Trademarks is in accordance with Talecris’ standards, specifications and
instructions. CHR shall acquire no right, title or interest in the Talecris
Trademarks other than the limited license stated herein.

 

15.2.2.      CHR will not use, authorize
or permit the use of the Talecris Trademarks or the Talecris tradename as part
of its firm, corporate or business name or in any way, except to designate the
Products owned by Talecris under the terms of this Agreement.

15.2.3.      CHR acknowledges and shall,
at all times, recognize, respect and protect Talecris’ sole ownership of any
and all rights in and to the Talecris Trademarks and shall not do anything,
during or after the Term of this Agreement, that could adversely affect such
proprietary rights.

15.2.4.      Talecris reserves the right
to withdraw from this Agreement any Products that it believes may infringe any
United States of America or foreign patent or trademark. In such event,
Talecris shall immediately notify CHR of the withdrawal decision and such
withdrawal shall immediately terminate CHR’s right to sell or distribute the
withdrawn Products under this Agreement.

15.3.   No Other License. Except as specifically set
forth in this section 15, nothing in this Agreement shall be deemed a license
by either party to use the trademarks, trade names or service marks of the
other party.

16. PUBLICITY. Neither Party shall directly or
indirectly publish, approve or issue any press release or public statement
relating to the relationship of the Parties to this Agreement or any Products
furnished or Services performed by CHR for Talecris (each, a “Press Release”),
without the prior written consent of the other Party’s authorized
representative as to both content and timing of such Press Release, which
approval may be withheld in the non-publishing Party’s sole discretion.

17. BUSINESS CONTINUITY.

17.1.   Business Continuity Plan.
CHR shall provide and, at all times during the Term, shall maintain the
capability (i) to continue operations due to a loss, interruption or unexpected
cause of removal of CHR’s facility/site; and (ii) to recover from unpredicted
interruptions within its operating environment or technology infrastructure,
resulting from a loss or disruption ranging from a temporary loss of a critical
system component to a full CHR facility/site disaster. Without limiting the
generality of the foregoing, CHR shall comply with the terms of the Business
Continuity Plan attached hereto and incorporated herein by reference as Exhibit
G, as the same may be amended as agreed by the Parties in writing, in
responding to any circumstances that threatens to impair or prevent the
continued operation of the Services or CHR’s business. On each anniversary of
the Effective Date of this

 

19

 

Agreement, CHR shall
deliver to Talecris an updated Business Continuity Plan. Each Business
Continuity Plan delivered by CHR shall be subject to Talecris’ review,
modification, acceptance and approval. Any modifications or updates thereto as
reasonably requested by Talecris as such modifications or updates are developed
by CHR shall be attached thereto and incorporated therein and herein, in their
entirety, by the reference. As part of each Business Continuity Plan, CHR shall
provide contingency plans to recover from site disasters, fires, floods,
explosions, and other events likely to result in business interruption.
Talecris’ review and approval of CHR’s Business Continuity Plan shall not act
as a waiver of, nor in any way effect, CHR’s obligations hereunder.

 

17.2.   Testing. CHR, at its sole expense, shall
maintain access to an effective disaster recovery site and shall execute
planned annual tests of the Business Continuity Plan, at a time which is
mutually acceptable to Talecris and CHR. Within ten (10) days of the completion
of such testing, CHR shall provide a written detailed summary of the test and
test results to Talecris. Talecris shall also be entitled, at its option and
sole expense, to conduct additional reasonable periodic testing of CHR’s
Business Continuity Plan, on reasonable notice, and require CHR to participate
in such testing and in the demonstration and documentation of its continued
efficacy, to the extent such testing pertains to the Services provided by CHR
hereunder.

17.3.   Right to Terminate. The parties agree that,
following and interruption of CHR’s business or disaster that calls for
implementation of the Business Continuity Plan, if the services are not
reinstated within the time periods set forth in the Business Continuity Plan,
Talecris shall have the right to immediately terminate this Agreement upon
written notice to CHR. In the event of such termination, Talecris will pay for
Services performed and accepted prior to the effective date of such
termination. CHR waives and forfeits all other claims for payment and damages
including without limitation, anticipated profits or revenue or other economic
loss, arising out of or resulting from such termination.

18. REPRESENTATIONS AND WARRANTIES

18.1.   Authority; No Violation; Binding Obligation.
Each Party represents and warrants to the other, as of the Effective Date, that
(i) such Party has the full right, power and authority to enter into this
Agreement; (ii) the execution, delivery and performance by such Party of this
Agreement are within its powers and have been duly authorized by all necessary
action; (iii) the execution of this Agreement by such Party and the performance
by such party of its obligations and duties hereunder do not and will not
violate any agreement, applicable law, judgment, injunction, order or decree to
which it is a party or by which it is otherwise bound; and (iv) when executed
and delivered by it, this Agreement shall constitute the legal, valid and
binding obligation of such Party, enforceable against such Party in accordance
with its terms.

18.2.   Permitted Employees and
Permitted Contractors Only. CHR represents and warrants that all Services
performed by CHR pursuant to this Agreement will be performed only by either
(i) full-time employees of CHR that are acting within the

 

20

 

scope of their employment
and have executed written agreements with CHR containing provisions legally
equivalent to those of Section 11 of this Agreement (the “Permitted Employees”)
or (ii) individual contractors of CHR that have executed written agreements
with CHR containing provisions legally equivalent to those of sections 11,
19.2, 19.3 and 19.4 of this Agreement (the “Permitted Contractors”). CHR shall
be responsible for the acts and omissions of all of its Permitted Employees and
Permitted Contractors under this Agreement.

 

18.3.   Debarment. Each of Talecris and CHR
represents and warrants that it is not currently debarred, suspended or
otherwise excluded by any government agency from receiving federal contracts.
CHR further certifies by accepting this Agreement or any part thereof that no
CHR personnel or subcontractor assigned to perform services under this Agreement
is debarred, suspended or proposed for debarment by the United States
Government. Debarment, suspension or proposed debarment of a Party by the
United States Government will constitute grounds for automatic termination of
this Agreement by the other Party.

18.4.   Compliance with Law. Each of Talecris and CHR
represents and warrants that it holds and shall maintain, throughout the Term
of this Agreement, all applicable material, professional and institutional
licenses and certifications required by federal and state laws and professional
boards and entities having jurisdiction over the Products and Services to be
provided hereunder. CHR further warrants that its performance of the Services
will comply with all applicable federal, state and local laws and regulations,
including without limitation, all applicable regulations and rules relating to
HIPAA, as well as pharmacy, health care provider and insurance laws. Talecris
further warrants that its provision of Product will comply with all applicable
federal, state and local laws and regulations, including, without limitation,
all applicable regulations and rules relating to health care provider and
insurance laws.

18.5.   CHR Employee and Subcontractor Qualifications.
CHR represents and warrants that CHR’s employees and subcontractors performing
Services hereunder shall have and continue to maintain, throughout the Term of
this Agreement, all applicable material professional and institutional licenses
and certifications required by applicable federal and state laws and
professional boards and entities having jurisdiction over the provision of
Services.

18.6.   HIPAA. Without limiting
the generality of the representation and warranty set forth in Section 18.4
above, CHR acknowledges and agrees that it is a “covered entity” for the
purposes of HIPAA, as such term is defined in 45 C.F.R. §160.103. CHR
represents and warrants that as of the Effective Date, it is in full compliance
with its obligations as a covered entity pursuant to the HIPAA laws,
regulations and rules. CHR further represents and warrants that it will comply
with all applicable HIPAA laws, regulations and rules throughout the Term, as
well as the BAA attached hereto as Exhibit E to the extent required by
HIPAA laws, regulations and rules, including, without limitation, its
obligations to execute business contractor agreements with its subcontractors
to the extent required by HIPAA laws, regulations and rules.

 

21

 

18.7.   Performance. CHR
represents and warrants that the Services will be performed in a good and
workmanlike manner. CHR further represents and warrants that the Services will
be performed in accordance with normally accepted industry standards.

 

18.8.   Key Performance Indicators. CHR represents
and warrants that the Services will be performed in accordance with KPIs.

18.9.   Confidentiality Practices. Each of Talecris
and CHR represents and warrants that it has implemented, and will use in the
provision of the Product or Services, business practices, technology, operating
procedures and methodologies consistent with industry best practices to prevent
the disclosure or distribution of the other’s Confidential Information in any
form or manner not specifically authorized or requested by the other, including
without limitation distributing any of the other’s Confidential Information in
a form or manner that is not approved by the other in advance, and sending any
of the other’s Confidential Information to third parties.

18.10. Products. The Products are warranted by
Talecris only as set forth on the applicable Product label or insert. CHR shall
not make or provide any additional warranties with respect to the Product, and
CHR shall defend, indemnify and hold harmless Talecris, its officers,
directors, employees, shareholders and agents from and against any Claim (as
defined in Section 19 below) based on any such additional warranty.

18.11. EXCEPT AS SPECIFICALLY SET FORTH IN THIS SECTION 18,
ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY
WARRANTY OF NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE OR USE ARE HEREBY DISCLAIMED AND EXCLUDED.

19. INDEMNIFICATION

19.1.   Talecris, at its own expense, shall defend,
indemnify and hold CHR, its shareholders, officers, directors, employees,
agents, successors and permitted assigns (the “CHR Indemnitees”) harmless from
and against all claims, losses, liabilities, costs, charges, expenses
(including reasonable attorneys’ fees) or damages (collectively, “Claims”) by
third parties for personal injuries or death that result from, or arise out of,
(a) any design, manufacturing or labeling defect in any Product, (b) any
failure by Talecris to supply Product pursuant to this Agreement or (c) any
negligent or intentional act or omission in the performance of this Agreement
by any of Talecris or its employees, contractors or agents.

19.2.   CHR shall defend, indemnify and
hold Talecris, officers, shareholders, directors, employees, agents, successors
and assigns (the “Talecris Indemnitees”) harmless from and against all Claims,
in respect of injury (including death) to any persons or loss or damage to any
real or tangible property which may arise out of the negligent or intentional
act or omission of CHR, its contractors, employees or agents in the performance
of the Services under this Agreement, provided that, CHR shall not be liable
for nor be required to indemnify Talecris in regard to any injury, loss or

 

22

 

damage to the extent that
such injury, loss or damage is caused by any negligent or intentional act or
omission on the part of Talecris or its employees contractors or agents.

 

19.3.   CHR shall defend, indemnify and hold the Talecris
Indemnitees harmless from and against all Claims arising from any acts of
fraud, embezzlement or dishonesty committed by CHR, its contractors, employees
or agents, acting alone or in collusion with another party, in the performance
of the Services hereunder. The absence of insurance shall not diminish CHR’s
responsibility to indemnify Talecris.

19.4.   Each of Talecris and CHR shall defend, indemnify and
hold the Talecris Indemnitees, in the case of CHR, and the CHR Indemnitees in
the case of Talecris, harmless from and against all Claims by third parties
arising from the indemnifying Party’s or its employees’, subcontractors’ or
agents (i) breach of any representation, warranty or covenant hereunder, or
failure to perform its obligations under this Agreement; (ii) violation of any
federal, state or local law, regulation, statute or ordinance, including,
without limitation, applicable privacy and security laws, rules, regulations
and other binding guidance (including, without limitation, HIPAA, state and
local pharmacy, health care provider and insurance laws and regulations);
and/or (iii) failure to comply with the confidentiality obligations set forth
in Section 11 and the BAA.

20. INSURANCE.

20.1.   Without limiting its responsibilities under Section
19, CHR shall maintain in force at all times during the term of this Agreement,
with insurance companies acceptable to Talecris, the following insurance
including any special terms indicated:

20.1.1.     Employer’s Liability
Insurance and Workers’ Compensation Insurance, including coverage for
occupational injury, illness and disease, and other similar social insurance in
accordance with the laws of the country, state or territory exercising
jurisdiction over the employee with minimum limits per employee and per event
of $1,000,000 and a minimum aggregate limit of $10,000,000 or the minimum
limits required by law, whichever limits are greater.

20.1.2.     Commercial General Liability
Insurance in respect of CHR’s liability for loss of or damage to property and
against liability in respect of injury, including death, resulting therefrom,
for the sum of not less than $3,000,000 for any one occurrence and $6,000,000
in the aggregate annually. Such policy shall include products/completed
operations and broad form contractual coverage. This coverage shall be endorsed
to name Talecris as additional insured.

20.1.3.     Property Insurance, including
Extra Expense and Business Income coverage, for all risks of physical loss of
or damage to buildings, business personal property or other property that is in
the possession, care, custody

 

23

 

or control of CHR
pursuant to this Agreement. Such insurance shall have a minimum limit adequate
to cover risks on a replacement cost basis. This coverage shall be endorsed to
name Talecris as loss payee.

 

20.1.4.     Automotive Liability
Insurance covering use of all owned, non-owned and hired automobiles for bodily
injury, property damage with a minimum combined single limit per accident of
$l,000,000, uninsured motorist and underinsured motorist liability with the
minimum limit required by law. Combined Single Limit for bodily injury and
property damage for the sum of not less than $1,000,000 per accident. This
coverage shall be endorsed to name Talecris as additional insured.

20.1.5.     Commercial Crime Insurance,
including blanket coverage for Employee Dishonesty and Computer Fraud, for loss
or damage arising out of or in connection with any fraudulent or dishonest acts
committed by the employees of CHR, acting alone or in collusion with others,
including the property and funds of others in their possession, care, custody
or control, with a minimum limit per event of $10,000,000.

20.1.6.     Professional Liability and
Errors and Omissions Liability Insurance covering liability for loss or damage
due to an act, error, omission or negligence with a minimum limit per event of
$10,000,000. This coverage shall be endorsed to name Talecris as additional
insured.

20.1.7.     Umbrella Liability Insurance
with a minimum limit of $20,000,000 in excess of the insurance coverage
described above. This coverage shall be endorsed to name Talecris as additional
insured.

20.2.   CHR acknowledges and agrees that the above limits of
liability or policy requirements may not be sufficient or adequate to satisfy
CHR’s obligations, including without limitation its indemnity obligations under
this Agreement.

20.3.   CHR shall have its insurance carrier or carriers
furnish to Talecris certificates that all insurance required under this
Agreement is in force, such certificates to indicate any deductible and/or self
insured retention and stipulate that the insurer will provide Talecris with no
less than thirty (30) days prior written notice of cancellation, termination,
non-renewal or material change. CHR shall not commence work until all of the
insurance required herein shall have been obtained.

21. LIMITATION OF LIABILITY. IN NO EVENT SHALL EITHER
PARTY, ITS AFFILIATES AND THEIR RESPECTIVE SHAREHOLDERS, MANAGERS, DIRECTORS,
OFFICERS, EMPLOYEES AND AGENTS BE LIABLE FOR ANY INDIRECT, SPECIAL, EXEMPLARY,
PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING, WITHOUT LIMITATION, LOST PROFITS,
HOWEVER CAUSED OR ARISING, WHETHER OR NOT SUCH PARTY HAS BEEN INFORMED OF THE
POSSIBILITY OF THEIR OCCURRENCE.

22. DISPUTE RESOLUTION.
If the parties fail to resolve any claim, dispute, or controversy of whatever
nature arising out of or relating to this Agreement (other than one relating to
a breach

 

24

 

of Section 11 or one
relating to the validity, enforceability, infringement or misappropriation of
the Talecris Trademarks, or other intellectual property rights of the parties,
which shall not be subject to this Section 22), or concerning the
interpretation, effect, termination, validity, performance and/or breach of
this Agreement (a “Claim”), either party may refer the Claim, by notice to the
other party, to their respective officers designated below or such other
officers as the parties may designate in writing from time to time, for
attempted resolution by good faith negotiations within thirty (30) days after
that notice is received.

The designated officers are as follows:

	
  For
  Talecris:

  	
   

  	
  Senior Director

  
	
   

  	
   

  	
   

  
	
  For
  CHR:

  	
   

  	
  President and Chief Executive Officer

  

 

Pending resolution of any such dispute, CHR shall
continue to perform its obligations under this Agreement, and Talecris shall
continue to make payment to CHR for any undisputed items. If such dispute is
not resolved by negotiation by the end of the thirty (30) day period, then the
Claim shall be submitted to nonbinding mediation administrated by the American
Arbitration Association under its Commercial Mediation Rules. If the parties
are unable to resolve the Claim through mediation, then the parties shall be
free to pursue any legal or equitable remedy available to them. Each Party will
bear its own attorney fees and other costs and expenses.

23. NOTICE. All notices and other communications that
may be or are required to be given hereunder shall be in writing and shall be
deemed to have been duly given on the date of delivery if personally delivered;
five days after mailing if mailed, first class postage prepaid; or one day
after mailing if sent by independent overnight courier, and shall be addressed
as follows:

If to CHR:

Centric Health Resources

17877 Chesterfield Airport Rd.

Chesterfield, Missouri 63005

Attn: Craig L. Kephart, President and CEO

If to TALECRIS:

Talecris Biotherapeutics, Inc.

400 Morgan Lane

West Haven, CT 06516–4140

Attn: Vice President of Commercial Development

With a copy (which shall not constitute notice) to:

Talecris Biotherapeutics,
Inc.

4101 Research Commons

79 T.W. Alexander Drive

Research Triangle Park, NC 27709

Attn: General Counsel

 

25

 

Either party may change
its address for purposes of notice pursuant to this Agreement by notifying the
other party of such change of address in the manner set forth above, except
that notices for changes of address are effective only upon receipt by the
other Party.

24. ENTIRE AGREEMENT. This Agreement, together with
the Exhibits attached hereto, contains the entire understanding between the
parties and supersedes and cancels any and all prior agreements, written or
oral, between them regarding the within subject matter (including the Term
Sheet). There are no representations, agreements, arrangements or
understandings, oral or written, between or among the parties hereto relating
to the subject matter of this Agreement that are not fully expressed herein.

25. AMENDMENT. This Agreement may not be amended
except in a writing signed by the authorized representatives of both of the
parties hereto.

26. ASSIGNMENT. This Agreement may not be assigned or
transferred by CHR without the prior written consent of Talecris. Any attempted
assignment in violation of this Section 26 shall be null and void. A Change of
Control of CHR shall be deemed an assignment of this Agreement. For the purposes
of this Agreement, a “Change of Control” shall mean an equity sale,
reorganization, merger, consolidation or other form of corporate transaction or
series of transactions, in each case, with respect to which persons who were the
holders of equity interests in CHR immediately prior to such equity sale,
reorganization, merger, consolidation or other transaction do not, immediately
thereafter, own more than fifty percent (50%) of the combined voting power
entitled to vote generally in the election of managers or directors of the
sold, reorganized, merged or consolidated company’s then outstanding voting
securities, in substantially the same proportions as their ownership
immediately prior to such equity sale, reorganization, merger, consolidation or
other transaction.

27. RELATED PARTY TRANSACTIONS. Throughout the term of
this Agreement, CHR will disclose in writing to Talecris any contemplated
related party transactions at least thirty (30) days in advance of such
transaction.

28. GOVERNMENT AUDITS. Until the expiration of four
(4) years following the furnishing of services under this Agreement and any
related agreement between the parties, CHR shall maintain this Agreement and
such related agreements and its books, documents and records of any kind that are
necessary to certify the nature and extent of the costs incurred by CHR
pursuant to this Agreement, and CHR shall make these items available to the
Secretary of Health and Human Services, the Comptroller General of the United
States, or the duly authorized representatives of either of them upon their
written request. If CHR performs any of the duties assumed pursuant to this
Agreement or any related agreement through subcontract with a third party
(without regard to whether the party is an affiliate of CHR) and such
subcontract shall have a value of at least ten thousand dollars ($10,000) over
any twelve (12) month period, then such subcontract shall require
subcontractors to comply with the requirements contained in this
Section 28.

29. BINDING EFFECT. Subject
to the foregoing, this Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and permitted
assigns.

 

26

 

30. SEVERABILITY. Each
Article and Section hereof shall be considered severable, and if for any reason
any Article or Section is determined to be invalid under current or future law,
such invalidity shall not impair the operation of or otherwise affect the valid
portions of this Agreement.

31. WAIVER. The terms, covenants and conditions of
this Agreement may be waived only by a written instrument executed by the party
waiving compliance. The failure of any party at any time or times to require
performance of any provision of this Agreement shall in no manner affect the
right at a later date to enforce the same or to enforce any future compliance
with or performance of any of the provisions hereof. No waiver by any party of
any condition or other breach of any provision, term or covenant in this
Agreement whether by conduct or otherwise, in any one or more instances, shall
be deemed to be or construed as a further or continuing waiver of any such
condition or the breach of any other provision, term or covenant of this
Agreement.

32. TITLES. The titles of the Sections herein have
been inserted as a matter of convenience for reference only, form no part of
this Agreement, and shall not control or affect the meaning or construction of
any of the terms or provisions hereof.

33. NO THIRD-PARTY BENEFICIARIES. This Agreement is
intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision
hereof be enforced by, and other person.

34. GOVERNING LAW; VENUE. The Agreement and all rights
and obligations hereunder shall be governed by the internal laws of the State
of North Carolina, without regard to principles of conflicts of laws. Any legal
action arising out of this Agreement shall be brought in a court having jurisdiction
in Wake County; North Carolina. Each party hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts sitting in the State of
North Carolina, Wake County for the adjudication of any dispute brought
hereunder, in connection herewith or with any transaction contemplated hereby
or discussed herein (including with respect to the enforcement of this
Agreement), and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by mailing
a copy thereof via registered or certified mail or overnight delivery (with
evidence of delivery) to such party at the address in effect for notices to it
under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner
permitted by law.

35. COUNTERPARTS. This
Agreement may be executed in one or more counterparts and each of such
counterparts shall, for all purposes, be deemed to be an original, but all of
such counterparts shall constitute one and the same instrument.

 

27

 

IN WITNESS WHEREOF, CHR
and Talecris have caused this Agreement to be executed by their officers who
have authority to bind their respective companies.

 

	
   

  	
   

  	
  CENTRIC
  HEALTH RESOURCES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/
  Craig L. Kephart

  	
   

  
	
   

  	
   

  	
   

  	
  Craig
  L. Kephart, President and CEO

  

 

	
   

  	
   

  	
  TALECRIS
  BIOTHERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Lawrence D. Stern

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Lawrence D. Stern

  
	
   

  	
   

  	
  Title:

  	
  President and CEO -
  Executive Chairman

  
	
   

  	
   

  	
  Date: 

  	
  8-25-05

  

 

28

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