Document:

Exhibit 10.21

 

STOCKHOLDERS AGREEMENT

 

among

 

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

 

TALECRIS HOLDINGS, LLC

 

AND

 

THE OTHER STOCKHOLDERS REFLECTED

 

ON THE SIGNATURE PAGES HERETO

 

December 7, 2006

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I
  DEFINITIONS

  	
  1

  
	
   

  	
  Section 1.01

  	
  Certain
  Defined Terms

  	
  1

  
	
   

  	
   

  
	
  ARTICLE II
  CERTAIN AGREEMENTS

  	
  5

  
	
   

  	
  Section 2.01

  	
  Redemption
  Rights

  	
  5

  
	
   

  	
  Section 2.02

  	
  Put Rights

  	
  5

  
	
   

  	
  Section 2.03

  	
  Exchange
  Rights

  	
  5

  
	
   

  	
   

  
	
  ARTICLE III
  RESTRICTIONS ON TRANSFER

  	
  6

  
	
   

  	
  Section 3.01

  	
  Legends

  	
  6

  
	
   

  	
  Section 3.02

  	
  Tag-Along
  Rights

  	
  7

  
	
   

  	
  Section 3.03

  	
  Drag-Along
  Right

  	
  8

  
	
   

  	
  Section 3.04

  	
  Agreement to
  be Bound

  	
  9

  
	
   

  	
  Section 3.05

  	
  Compliance
  with Securities Laws

  	
  10

  
	
   

  	
   

  
	
  ARTICLE IV
  MARKET STAND-OFF Section

  	
  10

  
	
   

  	
  Section 4.01

  	
  Provisions

  	
  10

  
	
   

  	
   

  
	
  ARTICLE V
  CONFIDENTIALITY

  	
  11

  
	
   

  	
  Section 5.01

  	
  Confidentiality

  	
  11

  
	
   

  	
   

  
	
  ARTICLE VI
  REPRESENTATIONS

  	
  11

  
	
   

  	
  Section 6.01

  	
  Representations
  of the Company

  	
  11

  
	
   

  	
  Section 6.02

  	
  Representations
  of Talecris LLC

  	
  12

  
	
   

  	
  Section 6.03

  	
  Representations
  of the Employee Holders

  	
  13

  
	
   

  	
   

  
	
  ARTICLE VII
  INDEMNIFICATION

  	
  14

  
	
   

  	
  Section 7.01

  	
  Indemnification

  	
  14

  
	
   

  	
  Section 7.02

  	
  Enforcing
  Claims Under Indemnity

  	
  14

  
	
   

  	
  Section 7.03

  	
  Exclusive
  Remedies

  	
  15

  
	
   

  	
   

  
	
  ARTICLE VIII
  MISCELLANEOUS

  	
  16

  
	
   

  	
  Section 8.01

  	
  Consent to
  Assignment

  	
  16

  
	
   

  	
  Section 8.02

  	
  Entire
  Agreement and Amendments

  	
  16

  
	
   

  	
  Section 8.03

  	
  Notices

  	
  17

  
	
   

  	
  Section 8.04

  	
  Non-Waiver

  	
  17

  
	
   

  	
  Section 8.05

  	
  Governing
  Law, Jurisdiction

  	
  17

  
	
   

  	
  Section 8.06

  	
  Captions

  	
  18

  
	
   

  	
  Section 8.07

  	
  Severability

  	
  18

  
	
   

  	
  Section 8.08

  	
  Set-Off

  	
  18

  
	
   

  	
  Section 8.09

  	
  Counterparts

  	
  18

  
	
   

  	
  Section 8.10

  	
  Recapitalizations,
  Exchanges, Etc. Affecting Common Stock

  	
  18

  
	
   

  	
  Section 8.11

  	
  Effectiveness
  and Joinder

  	
  18

  
	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  
	
  Exhibit A –
  Form of Joinder Agreement

  	
   

  

 

 

STOCKHOLDERS AGREEMENT

 

THIS
STOCKHOLDERS AGREEMENT (this “Agreement”), dated as of December 7, 2006, among
TALECRIS BIOTHERAPEUTICS HOLDINGS CORP., a Delaware corporation (the “Company”),
TALECRIS HOLDINGS, LLC, a Delaware limited liability company (“Talecris LLC”),
and each of the stockholders listed on any counterpart signature page hereto or
who become party hereto in accordance with Section 8.11(c) (collectively, the “Employee
Holders”). Capitalized terms not defined herein have the meanings assigned to
them in the Plan (as defined below).

 

RECITALS

 

A.                                   The
Talecris Biotherapeutics Holdings Corp. 2006 Restricted Stock Plan (the “Plan”),
authorizes awards of Shares to certain employees, officers and directors of,
and consultants to, the Company.

 

B.                                     As
a condition to the issuance of Unrestricted Shares pursuant to the Plan, the
Employee Holder has agreed to enter into this Agreement in order to govern
certain of its rights, duties and obligations with respect to Shares received
pursuant to the Plan and the relations among the Employee Holder, the Company
and Talecris LLC.

 

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

 

ARTICLE I

 

DEFINITIONS

 

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

 

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

 

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

 

“Ampersand”
means Ampersand 2001 Limited Partnership.

 

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

 

 

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

 

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

 

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

 

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

 

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

 

“Common Share”
means any share of Common Stock.

 

“Common Stock”
means the common stock of the Company, par value $0.01 per share.

 

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

 

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

 

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

 

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

 

“Drag-Along
Notice” has the meaning set forth in Section 3.03(b).

 

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

 

“Effective
Date” has the meaning set forth in Section 8.11.

 

“Equity
Interests” means any shares of any class or series of any securities or
instruments (including debt securities) directly or indirectly convertible into
or exercisable or exchangeable for shares of any class or series of capital
stock of any Person (or which are convertible into or exercisable or
exchangeable for another security or instrument which is, in turn, directly or
indirectly convertible into or exercisable or exchangeable for shares of any
class or series of

 

2

 

capital stock of such Person),
whether at the time of issuance or upon the passage of time or the occurrence
of future events, whether now authorized or not.

 

“Employee
Holders” has the meaning set forth in the Preamble.

 

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

 

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

 

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

 

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

 

“IPO” means
the initial public offering, if any, of Equity Interests of the Company or
Parent pursuant to an effective Registration Statement under the Securities
Act.

 

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

 

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

 

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

 

“Market
Stand-Off” has the meaning set forth in Section 4.01(a).

 

“Notice of
Interest” has the meaning set forth in Section 3.02(b).

 

“Notice Period”
has the meaning set forth in Section 3.02(b).

 

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

 

“Person” means
any individual, corporation (including not-for-profit), general or limited
partnership, limited liability company, joint venture, association, joint-stock
corporation, estate, trust, unincorporated organization or government or any
political subdivision, agency or instrumentality thereof or any other entity of
any kind.

 

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

 

3

 

“Pro Rata
Share” has the meaning set forth in Section 3.02(b).

 

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

 

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

 

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

 

“Representatives”
has the meaning set forth in Section 5.01(a).

 

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

 

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

 

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

 

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

 

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

 

“Tag-Along
Offer Notice” has the meaning set forth in Section 3.02(a).

 

“Tag-Along
Offer Price” has the meaning set forth in Section 3.02(a).

 

“Tag-Along
Right” has the meaning set forth in Section 3.02(a).

 

“Tag-Along
Shares” has the meaning set forth in Section 3.02(a).

 

“Tag-Along
Transfer” has the meaning set forth in Section 3.02(a).

 

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

 

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

 

“Transfer”
means any transfer, Sale, assignment, distribution, exchange, charge, pledge,
gift, hypothecation, conveyance, encumbrance, security interest or other
disposition of Shares or of a participation or other rights therein (including
any contract therefor), whether direct or indirect or through any one or more
intermediaries, voluntary or involuntary, by transfer by reorganization,
merger, sale of substantially all of the assets or by operation of law, or for
value or otherwise, or the entering into of a transaction or other arrangement
by a Person which has, or is intended to have, the effect of transferring any
economic benefit and/or risks of the ownership

 

4

 

of the Shares, or the entering
into of any voting trust or other arrangement (other than as contemplated
herein) with respect to voting rights of such Shares, or the transfer of an
interest in any Person holding the Shares (directly or indirectly through any
other Person in which such first-named Person holds an interest) or having
other economic interest, direct or indirect, in the Shares. Any indirect
Transfer shall include the transfer of any direct or indirect economic or
beneficial interest in the Shares that would result in the transferee having
the opportunity, directly or indirectly, to profit or share in any profit
derived from a transaction in the Shares.

 

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

 

ARTICLE II

 

CERTAIN AGREEMENTS

 

Section 2.01                             Redemption
Rights.

 

(a)                                  In
the event of an Employee Holder’s termination of Continuous Service, the
Company shall have the right to repurchase the Employee Holder’s Shares at not
less than the Fair Market Value of the Shares to be purchased calculated as of
the date of such purchase.

 

(b)                                 The
Company’s right to repurchase shall be exercisable for cash or cancellation of
purchase money indebtedness for the Shares.

 

(c)                                  This
Section 2.01 shall terminate immediately prior to the consummation of an IPO.

 

Section 2.02                             Put
Rights.

 

(a)                                  In
the event of an Employee Holder’s termination of Continuous Service due to such
Employee Holder’s death or Disability, the Employee Holder (or the Employee
Holder’s designated beneficiary or estate, in the absence of a designated
beneficiary) shall have the right for ninety (90) days thereafter to sell to
the Company any or all Shares for a price, payable in cash, equal to the Fair
Market Value of the Shares to be sold on the date of settlement.

 

(b)                                 The
Company’s obligation under Section 2.02(a) shall be absolutely subject to and
contingent upon the Company’s ability to make such cash payments to the extent
allowed under (i) Applicable Law, (ii) its financial covenants with any lender,
and (iii) any preferred stockholder agreements; with the sale of some or all of
the Employee Holder’s Shares and the payment due for such Shares being deferred
only to the extent necessary until the last day of the first fiscal quarter
during which the Company may make a cash payment for such Shares. At such time,
the Employee Holder shall receive a payment equal to the Fair Market Value of
the Shares on such settlement date (or if greater, the date on which the
Employee Holder’s Continuous Service terminated).

 

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

 

Section 2.03                             Exchange
Rights.

 

(a)                                  Immediately
prior to the consummation of an IPO of Parent or Change of Control of Parent,
the Employee Holders, on the one hand, and Talecris LLC, on the other hand,

 

5

 

will each be entitled to cause the Common Shares held
by the Employee Holders to be exchanged for Equity Interests in Parent as
comparable to the Common Stock as practicable (and in any event having a value
no less, and terms and rights no less favorable to the Employee Holders, than
those of their Common Shares).

 

(b)                                 In
the event Parent elects to cause the Company to become a wholly owned
subsidiary of Parent (a “Roll-Up”), Talecris LLC will be entitled to cause the
Common Shares to be exchanged for Equity Interests in Parent as comparable to
the Common Stock as practicable (and in any event having a value no less, and
terms and rights no less favorable to the Employee Holders, than those of their
Common Shares).

 

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

 

(d)                                 In
connection with any exchange pursuant to this Section 2.03, Parent shall
furnish to the Employee Holders information concerning the basis for the
determination that the Equity Interests received by the Employee Holders in
such exchange are as comparable as practicable to the Common Stock, including,
opinions prepared by accountants, investment bankers or other advisors in
connection with such exchange.

 

(e)                                  Consistent
with Section 8.10, upon the consummation of any exchange pursuant to Section
2.03(a) or Section 2.03(b) the provisions of this Agreement shall be adjusted
such that:

 

(i)                                     references
in this Agreement to Shares shall be deemed to be references to the Exchange
Shares; and

 

(ii)                                  references
in this Agreement to the Company shall be deemed to be references to Parent.

 

ARTICLE III

 

RESTRICTIONS ON TRANSFER

 

Section 3.01                             Legends.

 

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

 

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

 

6

 

EXEMPTION OR
EXCLUSION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT.

 

THE SECURITIES
EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER
AS SET FORTH IN A STOCKHOLDERS AGREEMENT, DATED AS OF DECEMBER 7, 2006, AS IT
MAY THEREAFTER BE AMENDED, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL
CORPORATE OFFICES OF THE ISSUER (THE “STOCKHOLDERS AGREEMENT”). NO REGISTRATION
OF TRANSFER OF SUCH SECURITIES WILL BE MADE ON THE BOOKS OF THE ISSUER UNLESS
AND UNTIL SUCH RESTRICTIONS SHALL HAVE BEEN COMPLIED WITH.

 

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

 

Section 3.02                             Tag-Along
Rights.

 

(a)                                  If
at any time Talecris LLC proposes to Sell (a “Tag-Along Transfer”), in a single
transaction or series of transactions, all or any portion of the Shares held by
it (the “Tag-Along Shares”) to a Third Party, each Employee Holder shall have
the opportunity to Sell its Pro Rata Share of the Tag-Along Shares (“Tag-Along
Right”). Talecris LLC shall provide written notice (the “Tag-Along Offer Notice”)
of such Tag-Along Transfer not later than 30 days prior to the consummation of
the Tag-Along Transfer to the Employee Holders disclosing (i) the identity of
the proposed purchaser, (ii) the number of Tag-Along Shares, (iii) the price at
which the Tag-Along Shares are proposed to be Sold (the “Tag-Along Offer Price”),
and (iv) all other material terms and conditions of the Tag-Along Transfer. Talecris
LLC agrees to use commercially reasonable efforts to obtain the agreement of
the prospective purchaser to the participation of the Employee Holders in the
contemplated Tag-Along Transfer, and agrees not to Transfer any shares to a
prospective purchaser that declines to allow the participation of the Employee
Holders in accordance with this Section 3.02.

 

(b)                                 If
any Employee Holder desires to exercise the Tag-Along Right, it shall, prior to
the expiration of 20 days after the Tag-Along Offer Notice is provided (the “Notice
Period”), provide Talecris LLC with a written notice specifying the number of
Common Shares which it has an interest in Selling pursuant to the Tag-Along
Transfer (a “Notice of Interest”). The Employee Holder exercising the Tag-Along
Right may specify in the Notice of Interest a number of Common Shares that is
greater than its Pro Rata Share (as defined below); provided, however, the
Company, in its absolute discretion, may limit the number of Common Shares to
be Sold by any Employee Holder pursuant to this Section 3.02 to its Pro Rata
Share. Delivery of a Notice of Interest shall constitute an irrevocable
election by such Employee Holder to Sell the number of Common Shares specified
in such Notice of Interest pursuant to the terms of the Tag-Along Transfer at a
price equal to the Tag-Along Offer Price. If any Employee Holder delivers a
Notice of Interest, it agrees that it will deliver to the closing of the
Tag-Along Transfer certificates evidencing the Common Shares to be Sold by it
in the Tag-Along Transfer duly endorsed in blank or accompanied by written
instruments of transfer in form reasonably satisfactory to Talecris LLC executed
by such Employee Holder and will execute such other documents containing such
terms and conditions (including customary representations and warranties that
relate specifically to its Common Shares being Sold) that Talecris LLC may
reasonably request in order to consummate the Tag-Along Transfer at the time
specified by Talecris LLC. In the event that any Employee Holder fails to
deliver any of the foregoing on or before the closing, then such Employee
Holder will be deemed to have irrevocably waived all of

 

7

 

its rights under this Section 3.02 with respect to any
future Tag-Along Transfers. The “Pro Rata Share” which an Employee Holder shall
be entitled to Sell shall be a number of Common Shares equal to the product
obtained by multiplying (x) the total number of Common Shares owned by such
Employee Holder by (y) a fraction, the numerator of which shall be the number
of Fully Diluted Common Shares into which Shares proposed to be Sold by
Talecris LLC are convertible, exercisable or exchangeable and the denominator
shall be the total number of Shares owned by Talecris LLC, assuming the
conversion, exercise or exchange of all Equity Interests of the Company owned
by Talecris LLC; provided, however, that if the proposed Third Party purchaser
in the Tag-Along Transfer is not willing to purchase the total of the Tag-Along
Shares to be Sold by Talecris LLC and the Pro Rata Share of each Employee
Holder at the same per unit Tag-Along Offer Price and on the same terms and
conditions contained in the offer for the Tag-Along Transfer, then the number
of the Tag-Along Shares to be Sold by Talecris LLC and the Pro Rata Share of
each Employee Holder shall be cut back pro rata (i.e., the number of Shares
that each of Talecris LLC and the Employee Holders may Sell shall bear the same
percentage to total number of Shares held by each of them, assuming the
conversion, exercise or exchange of all Equity Interests of the Company owned
by each of Talecris LLC and such Employee Holder).

 

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

 

(d)                                 If,
at the end of a Notice Period, any of the Employee Holders shall not have
exercised its Tag-Along Right, each such Employee Holder will be deemed to have
waived all of its rights under this Section 3.02 with respect to the particular
Tag-Along Transfer described in the applicable Tag-Along Offer Notice.

 

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

 

(f)                                    An
Employee Holder shall not have the ability to exercise a Tag-Along Right if the
Company has previously notified such Employee Holder of its intent to purchase
the Employee Holder’s shares pursuant to Section 2.01.

 

(g)                                 This
Section 3.02 shall terminate immediately prior to the consummation of an IPO.

 

Section 3.03                             Drag-Along
Right.

 

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

 

8

 

that would be held by Talecris LLC, assuming the
conversion, exercise or exchange of all Equity Interests of the Company, on the
same terms and conditions and at the same time or times as applicable to
Talecris LLC.

 

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

 

(c)                                  Each
Employee Holder agrees that it will deliver at the closing of the Drag-Along
Sale certificates evidencing the Common Shares to be sold by such Employee
Holder in the Drag-Along Sale duly endorsed in blank or accompanied by written
instruments of transfer in form reasonably satisfactory to Talecris LLC
executed by such Employee Holder, and each Employee Holder shall execute such
other documents of transfer that Talecris LLC may reasonably request in order
to consummate the Drag-Along Sale at the time specified by Talecris LLC.

 

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

 

(e)                                  Anything
herein to the contrary notwithstanding, Talecris LLC shall have no obligation
to any Employee Holder to Sell any Shares pursuant to this Section 3.03 as a
result of any decision by Talecris LLC not to accept or consummate any
Drag-Along Sale (it being understood that any and all such decisions shall be
made by Talecris LLC in its sole discretion). The Employee Holders shall not be
entitled to make any Sale of Common Shares directly to any Third Party pursuant
to a Drag-Along Sale (it being understood that all such Sales shall be made
only on the terms and pursuant to the procedures set forth in this Section
3.03).

 

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

 

Section 3.04                             Agreement
to be Bound.

 

No Transfer of Shares by any
Employee Holder, other than pursuant to Section 3.02 or Section 3.03 shall be
effective unless the transferee shall have executed and delivered to the
Company, as a condition precedent to such Transfer, an agreement in form and
substance reasonably satisfactory to the Company confirming that such
transferee agrees to be bound by the terms of this Agreement, including,
without limitation, Sections 3.01, 3.02, 3.03, 3.05 and 5.02, and such
transferee shall thereafter be deemed an Employee Holder for purposes of this
Agreement and shall succeed to the rights of any Employee Holder hereunder.

 

9

 

Section 3.05                             Compliance
with Securities Laws.

 

No Employee Holder shall Sell
any securities of the Company, and the Company shall not transfer on its books
any securities, unless (a) the Sale is pursuant to an effective Registration
Statement under the Securities Act and under any applicable state securities or
blue sky laws or (b) such Employee Holder shall have furnished the Company with
an opinion of counsel, to the effect that no such registration is required
because of the availability of an exemption from registration under the
Securities Act and under applicable state securities or blue sky laws. From and
after the date that is two years after the issuance of Common Shares to any
Employee Holder (calculated in accordance with Rule 144 under the Securities Act
or any successor rule), the Company shall, upon request by such Employee Holder
and upon receipt of an opinion of counsel in form, substance and scope
reasonably acceptable to the Company, to the effect that registration is not
required under the Securities Act or any applicable state securities law or
blue sky laws due to the applicability of an exemption therefrom, as promptly
as practicable cause the first paragraph of the legend described in Section
3.01 (to the extent any portion of such legend is then inapplicable) to be
removed from each certificate evidencing Common Shares held by such Employee
Holder.

 

ARTICLE IV

 

MARKET STAND-OFF SECTION

 

Section 4.01                             Provisions.

 

(a)                                  In
connection with any underwritten public offering by the Company of its equity
securities pursuant to an effective registration statement filed under the
federal securities laws, including the Company’s initial public offering, no
Employee Holder shall directly or indirectly sell, make any short sale of,
loan, hypothecate, pledge, offer, grant, sell or otherwise dispose or transfer,
or agree to engage in any of the foregoing transactions with respect to, any
Shares acquired under the Plan without the prior written consent of the Company
or its underwriters. Such restriction (the “Market Stand-Off’) shall be
in effect for such period of time, not exceeding one hundred eighty (180) days,
following the date of the underwriting agreement for the offering as may be
requested by the Company or such underwriters.

 

(b)                                 The
Market Stand-Off shall in any event terminate two (2) years after the date of
the Company’s initial public offering. In the event of the declaration of a
stock dividend, a spin-off, a stock split, an adjustment in conversion ratio, a
recapitalization or a similar transaction affecting the Company’s outstanding
securities without receipt of consideration, any new, substituted or additional
securities which are by reason of such transaction distributed with respect to
any Shares subject to the Market Stand-Off, or into which such Shares thereby
become convertible, shall immediately be subject to such Market Stand-Off.

 

(c)                                  In
order to enforce the Market Stand-Off, the Company may impose stop-transfer
instructions with respect to the Shares acquired under the Plan until the end of
the applicable stand-off period. The Company and its underwriters shall be
beneficiaries of the arrangement set forth in this Section 4.01. This Section
4.01 shall not apply to Shares registered in a public offering under the
federal securities laws, and the Employee Holders shall be subject to this
paragraph only if the directors and officers of the Company are subject to
similar arrangements.

 

10

 

ARTICLE V

 

CONFIDENTIALITY

 

Section 5.01                             Confidentiality.

 

(a)                                  The
Employee Holders from time to time will receive or have access to Confidential
Information pursuant to this Agreement. “Confidential Information” means (i)
all information, data, agreements, documents, reports and records which are
oral or in writing containing information concerning the Company or its
Affiliates or their businesses or assets, and (ii) all memoranda, notes,
analyses, compilations, studies or other documents which include any such
Confidential Information, whether prepared by the Company or its Affiliates,
directors, employees, managers, members, partners, representatives or agents
(including attorneys, consultants, lenders, potential investors and financial
advisors) (collectively, “Representatives”); provided, however, that “Confidential
Information” does not include (i) information which is obtained by such
Employee Holder after the date hereof from a source other than the Company or
its Affiliates or their respective Representatives, or (ii) information which
is or becomes generally available to the public other than as a result of a
disclosure by an Employee Holder in violation of this Section 5.01.

 

(b)                                 No
Employee Holder or its Affiliates, shall disclose or permit or cause to be
disclosed any Confidential Information to any Person, nor use any Confidential
Information for its own purposes or its own account, except as provided in
subsections (c) and (d) below.

 

(c)                                  An
Employee Holder (a “Disclosing Party”) may disclose the Confidential
Information to its Representatives who (x) need to know such information to
permit its Representatives to review and evaluate such Disclosing Party’s
investment in the Company, (y) are informed of the confidential nature of the
Confidential Information and (z) agree to maintain the confidentiality of the
Confidential Information. The Disclosing Party agrees to be fully responsible
for any breach of this Section 5.01 by any of its Representatives.

 

(d)                                 Notwithstanding
anything to the contrary set forth in this Section 5.01, if an Employee Holder
or any of its Representatives are required to disclose any Confidential
Information pursuant to any applicable law, rule or regulation or a subpoena,
court order, similar judicial process, regulatory agency or stock exchange
rule, such Employee Holder will, if possible, promptly notify the Company of
any such requirement so that the Company may seek an appropriate protective
order or waive compliance with the provisions of this Section 5.01. If such
order is not obtained, such Employee Holder and its Representatives will
disclose only that portion of the Confidential Information which they are
advised by counsel that they are legally required to so disclose.

 

ARTICLE VI

 

REPRESENTATIONS

 

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

 

(a)                                  Due
Organization, Good Standing and Power. The Company is a corporation and is
duly organized or formed, validly existing and in good standing under the laws
of the state of Delaware. The Company has all requisite corporate or other
power and authority to own or lease and to operate its assets and to conduct
the business now being

 

11

 

conducted by it. The Company is duly authorized,
qualified or licensed to do business as a foreign corporation or other
organization in good standing in each of the jurisdictions in which its
ownership of property or the conduct of its business requires such
authorization, qualification or licensing, except where the failure to have
such authorization, qualification or licensing could not reasonably be expected
to have a material adverse effect on the Company, or on the performance of its
obligations hereunder. The Company has all requisite corporate or other power
and authority under Applicable Law and its charter documents to enter into this
Agreement and to perform its obligations hereunder.

 

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

 

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

 

Section 6.02                             Representations
of Talecris LLC. Talecris LLC represents and warrants that, as of the date
of its execution of this Agreement:

 

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

 

(b)                                 Authorization
and Validity of Agreement. The execution and delivery of this Agreement by
Talecris LLC and the performance by Talecris LLC of the obligations hereunder
have been duly authorized and approved by all necessary company or other action
under Applicable Law and the relevant charter documents on the part of Talecris
LLC and do not require the approval of the equity holders of Talecris LLC. This
Agreement has been duly executed and delivered by Talecris LLC and constitutes
the legal, valid and binding obligation of

 

12

 

Talecris LLC enforceable against it in accordance with
its terms, except as that enforceability may be (i) limited by any applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally, (ii) subject to general
principles of equity (regardless of whether that enforceability is considered
in a proceeding in equity or at law) and (iii) limited by general principles of
Applicable Law regarding the enforceability of arbitral awards and judicial
decisions.

 

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

 

Section 6.03                             Representations
of the Employee Holders. Each Employee Holder, severally as to itself,
represents and warrants as of the date that such Employee Holder became a party
to this Agreement that:

 

(a)                                  Due
Organization, Good Standing and Power. If such Employee Holder is an
individual, the Employee Holder is a natural person who has the legal capacity
and all requisite power and authority to enter into this Agreement, to comply
with the provisions hereof and to carry out any transactions contemplated
hereby. If such Employee Holder is a limited liability company, corporation,
trust or other entity, such Employee Holder is a limited liability company duly
organized, corporation, trust or other entity, validly existing and in good
standing under the laws of its state of formation. If such Employee Holder is a
limited liability company, corporation, trust or other entity, such Employee
Holder has all requisite company, corporation or other power and authority
under Applicable Law and its charter documents to enter into this Agreement,
own the Common Shares and perform its obligations hereunder.

 

(b)                                 Authorization
and Validity of Agreement. If such Employee Holder is a limited liability
company, corporation, trust or other entity, the execution and delivery of this
Agreement by such Employee Holder and the performance of such Employee Holder’s
obligations hereunder have been duly authorized and approved by all necessary
company, corporate or other action under Applicable Law and the relevant
charter documents on the part of such Employee Holder and does not require the
approval of the equity holders of such Employee Holder, except for such
approvals as have been obtained prior to the date of such Employee Holder’s
execution of this Agreement. This Agreement has been duly executed and
delivered by such Employee Holder and constitutes the legal, valid and binding
obligation of such Employee Holder, enforceable against such Employee Holder in
accordance with its terms, except as that enforceability may be (i) limited by
any applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting the enforcement of creditors’ rights generally, (ii) subject to
general principles of equity (regardless of whether that enforceability is
considered in a proceeding in equity or at law) and (iii) limited by general
principles of Applicable Law regarding the enforceability of arbitral awards
and judicial decisions.

 

(c)                                  Ownership
of Shares. The Employee Holder is the record and beneficial owner and
holder of the Shares. The Employee Holder represents that its Shares are owned
free and clear of Liens and encumbrances, except for restrictions imposed under
any federal or state securities law.

 

13

 

ARTICLE VII

 

INDEMNIFICATION

 

Section 7.01                             Indemnification.

 

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

 

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

 

(c)                                  Indemnity
by the Employee Holders. Each Employee Holder shall, severally and not
jointly, indemnify and hold harmless the Company and Talecris LLC against any
and all claims or losses now existing or hereinafter arising, whether known or
unknown, out of: (i) any inaccuracy in any of the representations or breach of
any of the warranties made in this Agreement by such Employee Holder or (ii)
any breach or default in performance of any of the obligations that are to be
performed by such Employee Holder under this Agreement.

 

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

 

Section 7.02                             Enforcing
Claims Under Indemnity.

 

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

 

(b)                                 In
the event such claim involves a claim by a third Person against the Indemnified
Party, the Indemnifying Party shall have 30 days after receipt of such notice
to decide whether it will undertake, conduct and control, through counsel of
its own choosing and at its own expense, the settlement or defense thereof, and
if it so decides, the Indemnified Party shall cooperate with it in connection
therewith; provided, however, that the Indemnifying Party may so undertake,
conduct and control the settlement or defense thereof only if it acknowledges
in writing its indemnification obligations hereunder and the Indemnified Party
may participate (subject to the Indemnifying Party’s control) in such
settlement or defense through counsel chosen by it; provided, further that the
fees and expenses of such Indemnified Party’s counsel shall be borne by the
Indemnified Party. If the defendants in any action include the Indemnified
Party and the Indemnifying Party, and the Indemnified Party shall have been
advised by its

 

14

 

counsel in writing that there are legal defenses
available to the Indemnified Party which are materially different from or in
addition to those available to the Indemnifying Party, the Indemnified Party
shall have the right to employ its own counsel in such action, and, in such
event, the reasonable fees and expenses of such counsel shall be borne by the
Indemnifying Party. The Indemnifying Party may, without the consent of the
Indemnified Party, settle or compromise or consent to the entry of any judgment
in any action involving only the payment of money (A) which includes as an
unconditional term thereof the delivery by the claimant or plaintiff to the
Indemnified Party of a duly executed written release of the Indemnified Party
from all liability in respect of such action which written release shall be
reasonably satisfactory in form and substance to the Indemnified Party and (B)
if there is no finding or admission of any violation of law or any violation of
any Person and no effect on any other claims that may be made against the
Indemnified Party. The Indemnifying Party shall not, without the written
consent of the Indemnified Party, settle or compromise any action involving
relief other than the payment of money in any manner that, in the reasonable
judgment of the Indemnified Party, would materially and adversely affect the
Indemnified Party; provided, however, that if the Indemnified Party shall fail
or refuse to consent to a settlement, compromise or judgment proposed by the
Indemnifying Party and approved by the third Person in any such action and a
judgment thereafter shall be entered or a settlement or compromise thereafter
shall be effected on terms less favorable in the aggregate to the Indemnified
Party than the settlement, compromise or judgment proposed by the Indemnifying
Party and approved by the third Person on such action, the Indemnifying Party
shall have no Liability hereunder with respect to any claim or loss in excess
of those that were provided for in such settlement, compromise or judgment so
proposed by the Indemnifying Party or any costs or expenses related to such
claim arising after the date such settlement, compromise or judgment was so
proposed. So long as the Indemnifying Party is diligently contesting any such
claim in good faith, the Indemnified Party shall not pay or settle any such
claim, unless such settlement includes as an unconditional term thereof the
delivery by the claimant or plaintiff and by the Indemnified Party to the
Indemnifying Party of duly executed written releases of the Indemnifying Party
from all Liability in respect of such claim which written releases shall be
reasonably satisfactory in form and substance to the Indemnifying Party.

 

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

 

(c)                                  The
Indemnified Party shall cooperate with the Indemnifying Party in pursuing
reasonable remedies against third parties, including any insurance carrier or
potential indemnitor, other than the Indemnifying Party, to recover any claim
or loss against the Indemnified Party; provided, however, the Indemnified Party
shall only be required to initiate litigation or other formal claims procedure
to seek remedies against such third parties when requested by the Indemnifying
Party in the exercise of reasonable business judgment. All costs incurred by
the Indemnified Party in pursuing such remedies at the request of the
Indemnifying Party shall be borne by the Indemnifying Party. The Indemnifying
Party shall not delay any payments due and owing the Indemnified Party under
this Article 7 while claims are being pursued against any third parties under
this Section 7.02.

 

Section 7.03                             Exclusive
Remedies.

 

THE
INDEMNIFICATION PROVISIONS IN THIS ARTICLE VII SHALL BE THE SOLE AND EXCLUSIVE
REMEDIES OF THE PARTIES FOR THE BREACH OF ANY

 

15

 

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

 

ARTICLE VIII

 

MISCELLANEOUS

 

Section 8.01                             Consent
to Assignment.

 

This Agreement
and all of the provisions hereof shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and permitted assigns,
and it is not intended to confer upon any other person any rights or remedies
hereunder. Neither this Agreement nor any of the rights, interests or
obligations hereunder may be assigned by any of the parties without the prior
written consent of the other party hereto, except that each party may at any
time assign any or all of its rights or obligations hereunder to one of its
wholly owned subsidiaries (but no such assignment shall relieve such party of
any obligations under this Agreement). Notwithstanding the foregoing, the
Company may assign this Agreement and any or all rights or obligations
hereunder to (i) any Affiliate of the Company provided that any such Affiliate
becomes a party to this Agreement, (ii) any lender of the Company as collateral
security or (iii) any successor in interest to the Company; provided that any
such successor becomes a party to this Agreement; provided that no assignment
under (i), (ii) or (iii) above shall relieve the Company from any obligation
hereunder. Any Employee Holder may assign this Agreement and any or all rights
or obligations hereunder to a transferee, provided that any such transferee
becomes a party to this Agreement by executing a Joinder Agreement in the form
attached as Exhibit A; provided that such assignment shall not relieve the
Employee Holder from any obligation hereunder. Talecris LLC may assign this
Agreement and any or all rights or obligations hereunder to (i) any Affiliate
of Talecris LLC to which Talecris LLC transfers Shares in accordance with this
Agreement, provided that any such Affiliate becomes a party to this Agreement,
and (ii) any successor in interest to Talecris LLC provided that any such
assignee becomes a party to this Agreement; provided that no assignment under
(i) or (ii) above shall relieve Talecris LLC from any obligation hereunder. Any
purported assignment in contravention of this Section 8.01 shall be void.

 

Section 8.02                             Entire
Agreement and Amendments.

 

This Agreement
constitutes the entire agreement among the parties, and merges and supersedes
all previous agreements and understandings among the parties, whether oral or
written, relating to the subject matter hereof. No amendment, modification or
interpretation of this Agreement will have any effect unless it is reduced to
writing, makes specific reference to this Agreement and is signed by all of the
parties; provided, that, the joinder of an Employee Holder pursuant to the
execution of a Joinder Agreement in the form attached as Exhibit A will not be
deemed an amendment, modification or interpretation of this Agreement.

 

16

 

Section 8.03                             Notices.

 

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

 

If to the
Company or Talecris LLC:

 

Talecris
Biotherapeutics Holdings Corp.

PO Box 110526

4101 Research
Commons

79 T.W.
Alexander Drive

Research
Triangle Park

North
Carolina, USA 27709

Fax: (919)
316-6669

Attention:
General Counsel

 

Copy to:

 

Reed Smith LLP

599 Lexington
Avenue

29th Floor

New York, NY
10022

Fax: (212)
521-5450

Attention: David
M. Grimes, Esq.

 

If to an
Employee Holder, at the address set forth on such Employee Holder’s signature
page or in such Employee Holder’s Joinder Agreement.

 

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

 

Section 8.04                             Non-Waiver.

 

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

 

Section 8.05                             Governing
Law, Jurisdiction.

 

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

 

17

 

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

 

Section 8.06                             Captions.

 

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

 

Section 8.07                             Severability.

 

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

 

Section 8.08                             Set-Off.

 

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

 

Section 8.09                             Counterparts.

 

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

 

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

 

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

 

Section 8.11                             Effectiveness
and Joinder.

 

(a)                                  This
Agreement shall be effective in respect of the Company as of the date of this
Agreement, even if executed by the Company at a later date, as memorializing
the understanding of the parties as of the date of this Agreement. This
Agreement shall be effective in respect of such Employee Holder upon the first
date that this Agreement has been signed by the Company and such Employee
Holder or such Employee Holder has signed a Joinder

 

18

 

Agreement in the form of Exhibit A and such Joinder Agreement
has been received by the Company (the “Effective Date”).

 

(b)                                 This
Agreement shall not be effective as against Talecris LLC until such date as
Talecris LLC has signed this Agreement. The representations of Talecris LLC in
Section 6.02 are made only as of the date of Talecris LLC’s signature and shall
not be deemed to be made as of any subsequent date, including the date of any
subsequent Joinder Agreement.

 

(c)                                  An
Employee Holder may become party to this Agreement by signing a Joinder
Agreement in the form of Exhibit A. Such Joinder Agreement shall be effective
when received by the Company.

 

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

 

	
   

  	
  TALECRIS
  BIOTHERAPEUTICS HOLDINGS

  
	
   

  	
  CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ LAWRENCE D. STERN

  
	
   

  	
   

  	
  Lawrence D.
  Stern

  
	
   

  	
   

  	
  Executive
  Chairman

  
	
   

  	
   

  
	
   

  	
  Date:

  	
      as
  of December 1, 2006

  
	
   

  	
                    

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TALECRIS
  HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Authorized Signatory

  
	
   

  	
   

  	
  Name:
  Authorized Signatory

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
      as
  of December 7, 2006

  
	
   

  	
                    

  
				

 

19

 

EXHIBIT A

 

to

 

STOCKHOLDERS AGREEMENT

 

Form of Joinder Agreement

 

The
undersigned hereby joins in the execution of that certain Stockholders
Agreement, dated as of December 7, 2006 (the “Agreement”), by and among
Talecris Biotherapeutics Holdings Corp., Talecris Holdings, LLC and the other
parties named therein and becomes a party thereto after the date and pursuant
to the terms thereof. By executing this Joinder, the undersigned hereby agrees
that it is a party to the Agreement with the same force and effect as if
originally named therein as a signatory. The undersigned agrees to and shall be
bound by and subject to all of the terms and provisions of the Agreement,
including, without limitation, the provisions of Sections 3.01, 3.03, 4.01,
5.01 and 7.01 thereof. Furthermore, the undersigned makes the representations
in Section 6.03 as of the date hereof. The address and facsimile number to
which notices may be sent to the undersigned is as follows:

 

	
  Notice
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Facsimile
  No.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (For Stockholder that is a natural person)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name:Exhibit 10.22

 

Execuion Copy

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT between Talecris Biotherapeutics Holdings Corporation (the
“Company”) and Lawrence D. Stern (the “Executive”) (together, the “Parties”) is
effective as of April 1, 2005 (the “Effective Date”) and is amended and
restated as of April 1, 2007, with all terms retroactive to such date (“Restatement
Date”).

 

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

 

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, as of the Effective
Date. From and after the Restatement Date, “Agreement” shall refer to the terms
of the Executive’s employment with the Company as stated herein

 

2.     Term.
Subject to earlier termination pursuant to Section 5 of this Agreement, this
Agreement and the employment relationship hereunder shall continue for two
years from the Restatement Date (“Initial Renewal Term”) and shall renew for
additional one (1) year intervals (each a “Subsequent Term”) 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 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. 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 services to the Company and
its subsidiaries. From the Restatement Date, Executive shall serve in the
capacity of Executive Chairman of Talecris Biotherapeutics Holdings Corporation.
At any time during the Renewal Term, upon 60 days notice, the Board of
Directors (the “Board”) of the Company may change the Executive’s capacity and
title from Executive Chairman to Chairman and Chief Executive Officer or to Chairman
(in a non-executive capacity). (As used herein, all references to the position
of “EC/CEO” shall include the position of Executive Chairman and Chairman and
Chief Executive Officer and all references to the position of “Chairman” shall
mean Chairman of the Board of Directors in a non-executive capacity.)  If the Agreement is renewed for a Subsequent
Term, Executive shall serve in the capacity of Chairman, unless otherwise
agreed upon in writing by the parties. In each of these capacities, Executive
shall report to the Board.

 

1

 

3.2.    Duties.
The Executive will have such authority and responsibilities and will perform
such executive duties customarily performed by individuals holding such roles
in a company in similar lines of business as the Company and its subsidiaries
or as may be assigned to Executive by the Board. While serving in the position
of EC/CEO, the Executive will devote all his full working-time and attention to
the performance of such duties and to the promotion of the business and
interests of the Company and its subsidiaries. While serving in the position of
Chairman, Executive will devote such time as necessary to perform the duties
associated therewith, but will not be required to devote his full time and
attention to the Company. For avoidance of doubt, while serving as Chairman,
Executive will be permitted to pursue outside activities so long as such
activities do not interfere or conflict with his duties hereunder or in any way
violate the terms of Section 6 herein.

 

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 from the Restatement Date:

 

4.1.    Base
Salary. The Company will pay to the Executive an annual base salary of Six
Hundred Thousand Dollars ($600,000) for so long as he holds the position of
EC/CEO and an annual base salary of Three Hundred and Fifty Thousand Dollars
($350,000) while he holds the position of Chairman (the “Base Salary”). The
Base Salary shall be payable in accordance with the customary payroll practices
of the Company. 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.    Performance
Bonus. The Executive will be eligible to receive an annual performance
bonus (“Performance 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 Performance Bonus shall be 200% of his Base
Salary while he holds the position of EC/CEO and 100% of his Base Salary while
he holds the position of Chairman (the “Target Performance Bonus”), with the
actual amount of each Performance Bonus being determined under the Bonus Plan
in effect at that time as approved by the Board. For the avoidance of doubt, in
2007, the Target Performance Bonus shall be prorated at 150% for 3 months and
at 200% for the number of months in which the Executive holds the position of
EC/CEO after the Restatement Date.

 

4.3.    Renewal
Bonus. The Executive will be entitled to receive a “Stock Renewal Bonus” in
the form of 93,300 shares of Restricted Stock on the terms contained in the
Restricted Stock Award Agreement attached to Agreement as Exhibit 4.3.

 

4.4.    Strike
Price Adjustment In the event, prior to an IPO, the Company makes an
extraordinary distribution of cash or assets to the holder of the Common Stock
exceeding on a per share basis ten percent (10%) of the Fair Market Value of a
share of Common Stock, Executive’s Option Exercise Price shall be equitably
adjusted, unless Executive accepts substitute benefits determined by the Board
of Directors.

 

2

 

4.5.    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.

 

4.5.1.       Reimbursement of Group Health
Insurance if Executive is Deemed Ineligible to Participate in the Company Plan.
To the extent that Executive is deemed ineligible to
participate in the Company’s health care benefit plans for which other senior
executives are eligible due to a change in his position at the Company from
EC/CEO to Chairman, then the Company shall reimburse Executive for the cost of
independently procuring reasonably similar health care benefits.

 

4.6.    Vacation.
The Executive shall be entitled to four (4) weeks of paid vacation while
serving in the position of EC/CEO. 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.

 

4.7.    Business
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.

 

4.8.    Other
Expense Reimbursement.

 

4.8.1.       Home Office Expenses. The Company shall reimburse
Executive for all reasonable expenses he incurs for the maintenance of a home
office.

 

4.8.2.       North Carolina Living and Travel Expenses. While Executive holds the position
of EC/CEO, the Company shall reimburse
Executive for living expenses in North Carolina (including housing and meals). In
the alternative, if Executive determines to establish a secondary residence in
North Carolina while Executive holds the position of EC/CEO, the Company shall
reimburse Executive for documented realtor and closing costs plus
trucking/moving expenses. In addition, Executive will be entitled to
reimbursement of travel expenses for weekly travel (for either Executive’s
travel or travel by his spouse) to and from Raleigh North Carolina and Executive’s
then current primary residence. To the extent that the Company determines it
must withhold tax on any such living or travel expenses, the Company will “gross
up” Executive for the amount of the withholding taxes in accordance with the
Company’s customary procedure.

 

4.8.3.       Car Allowance. While Executive holds the position of EC/CEO, the
Company shall pay Executive a car allowance of $750 per month.

 

3

 

4.8.4.       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.

 

4.9.    Stock
Options. The Executive shall be eligible to participate in the 2005 Stock
Option and Incentive Plan established by the Company (the “Stock Option Plan”)
pursuant to the terms of the Stock Option Plan and any applicable agreements
thereunder as determined from time to time by the Board.

 

4.9.1.       As soon as reasonably practical following the
Restatement Date, but in any event prior to July 31, 2007, the Compensation
Committee will grant Executive an option under the terms of the Stock Option
Plan to purchase 252,000 shares of common stock of the Company with an exercise
price equal to the fair market value per fully diluted common share (“Fair
Market Value”) as determined by the Compensation Committee based on an
valuation of the common equity by an independent consulting firm expert in
doing valuations of this type, such as Valuation Research Corporation. Such
stock options will be on the terms of the Stock Option Award Agreement attached
to this Agreement as Exhibit 4.9.1.

 

4.9.2.       In addition, if Executive holds the position of EC/CEO
at the time of the initial public offering by the Company of its common stock
to the public, the Compensation Committee will grant Executive an option under
the terms of the Stock Option Plan, effective immediately prior to the initial
public offering by the Company of its common stock to the public, at a price
equal to the public offering price to purchase a number of shares equal to one
percent (1%) of the then fully diluted outstanding shares prior to such public
offering at an exercise price equal to the public offering price. Such stock
options will be on the terms of the Stock Option Award Agreement attached to
this Agreement as Exhibit 4.9.2.

 

4.10.  Parachute
Payments. Anything in this Agreement to the contrary notwithstanding, in
the event it shall be determined that any payment or distribution in the nature
of compensation (within the meaning of Section 280G(b)(2) of the Tax Code) to
or for the benefit of the Executive, whether paid or payable pursuant to this
Agreement (including, without limitation, the accelerated vesting of incentive
or equity awards held by the Executive) or otherwise would be subject to the
excise tax imposed by Section 4999 of the code, then the amount of “parachute
payments” (as defined in Section 280G of the Code) payable or required to be
provided to the Executive shall be automatically reduced to the minimum extent
necessary to avoid imposition of such excise tax; provided that this reduction
shall not apply if the Executive would be better off, on a net after-tax basis,
receiving the parachute payments that would otherwise be reduce and paying such
excise tax. Notwithstanding the foregoing, the Company shall use its reasonable
efforts to have any payments or distributions that would be reduced or
eliminated as a result of the application of this Section 4.9 approved by the
Company’s shareholders in the manner contemplated by Q&A 7 of Treasury
Regulation Section 1.280G-1. All determinations required to be made under this
Section 4.4.10 shall be made by the Company’s accounting firm (the “Accounting
Firm”); provided that the 

 

4

 

Executive may
select which, if any, parachute payments shall be reduced. The Accounting Firm
shall provide detailed supporting calculations both to the Company and the
Executive. All fees and expenses of the Accounting Firm shall be borne solely
by the Company. Absent manifest error, any determination by the Accounting Firm
shall be binding upon the Company and the Executive.

 

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
unpaid benefits set forth in Section 4.5 and 4.6, if any, to the date of
termination;

 

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

 

5.1.3.       expenses reimbursable under Section 4.7 incurred but
not yet reimbursed to the Executive to the date of termination.

 

5.1.4.       vesting and exercise of Stock Options to the extent
set forth in Executive’s Stock Option Award Agreements

 

5.1.5.       vesting of Restricted Stock to the extent set forth in
Executive’s Restricted Stock Agreements.

 

For the purposes of this Agreement, “Cause”
means, as determined by the Board (or its designee), with respect to 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 Board of
Directors that would not otherwise conflict with Executive’s responsibilities
or duties or the failure to adequately 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).

 

5

 

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 removal of Executive, without his consent, from the position
of Chairman of the Board 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) 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; (vi) 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 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.

 

For the avoidance of doubt, a change of
position from EC/CEO to Chairman is not intended to constitute a termination of
employment or the termination of Executive’s status as a Key Person under the
Stock Option Plan.

 

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 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, 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 Performance Bonus, if any,
relating to the calendar year 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 pursuant to this Section
5.2, a pro-rata 

 

6

 

share of the Performance 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 Performance Bonus, payable in the
same manner and at the same time as other executives remaining at the Company
are paid;

 

5.2.4.       the vesting and exercising of stock options to the
extent set forth in Executive’s stock option award agreements.

 

5.2.5.       the vesting of all Restricted Shares granted under the
2006 Restricted Stock Plan;

 

5.2.6.       payment of all Special Recognition Bonus Compensation
awarded pursuant to the Special Recognition Bonus Plan effective as of October
1, 2006;

 

5.2.7.       payment of all of the Special Recognition Bonus Award
made to Executive on December 6, 2007;

 

5.2.8.       vesting of Stock Renewal Bonus to the extent set forth
in Executive’s Restricted Stock 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 5.1) upon execution without revocation of a
valid release agreement in a form reasonably acceptable to the Company and
provided that the Executive honors all applicable provisions of this Agreement
following termination and that Executive has made a good faith effort to
support the transition including periodic consulting services to the Company
during this eighteen (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.       Performance Bonus payments in an aggregate amount
equal to the lesser of the Performance Bonus amount earned by the Executive for
the year prior to the calendar year of the Executive’s termination or the
Target Performance Bonus, payable in equal monthly installments for
eighteen  (18) months on the last
business day of the month following the termination date;

 

7

 

5.3.3.       reimbursement of the cost of continuation coverage of
group health coverage pursuant to COBRA for a maximum of twelve (12) months to
the extent Executive elects such continuation coverage and is eligible and
subject to the terms of the plan and the law; and

 

5.3.4.       the vesting and exercising of stock options to the
extent set forth in Executive’s stock option award agreements.

 

5.3.5.       the vesting of all Restricted Shares granted under the
2006 Restricted Stock Plan;

 

5.3.6.       payment of all Special Recognition Bonus Compensation
awarded pursuant to the Special Recognition Bonus Plan effective as of October
1, 2006;

 

5.3.7.       payment of all of the Special Recognition Bonus Award
made to Executive on December 6, 2007;

 

5.3.8.       vesting of Stock Renewal Bonus to the extent set forth
in Executive’s Restricted Stock Agreement.

 

5.4.    Termination
Due to Completion of Term Without Renewal. If the contract lapses due to
non-renewal by the Company upon expiration of the Initial Renewal Term, the
Executive or the Executive’s legal representatives (as appropriate) shall be
entitled to receive the severance benefits set forth in section 5.3, but
specifically excluding the benefits set forth in section 5.3.2 upon execution
without revocation of a valid release agreement in a form reasonably acceptable
to the Company and provided that the Executive honors all applicable provisions
of this Agreement following termination and that Executive has made a good
faith effort to support the transition including periodic consulting services
to the Company during this eighteen (18) month time period, at no additional
payment or remuneration other than the severance amount stated herein. Notwithstanding
the foregoing, the amount of severance to be paid to Executive under this
Section 5.4 shall be reduced by any amount of compensation that Executive earns
from other employment or the provision of consulting services during the 18
month time frame in which severance is to be paid. For purposes of this
paragraph compensation shall include all forms of compensation (e.g. base salary,
bonus payments, equity grants), but shall not include investment income earned
by Executive.

 

5.5.    Conduct
Constitution a Breach. The Company’s obligation to provide the payments and
benefits set forth above in sections 5.2, 5.3 and 5.4 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 

 

8

 

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.

 

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 

 

9

 

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 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 

 

10

 

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.

 

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, 5.3 and/or 5.4 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, 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 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, and 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,
5.3 and/or 5.4 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, 5.3 and/or 5.4.

 

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 overnight mail and shall be deemed given when so
delivered personally, telegraphed, 

 

12

 

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.: General Counsel

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:

 

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 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 

 

13

 

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.

 

	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ LAWRENCE D. STERN

  	
   

  
	
   

  	
  Name: Lawrence D. Stern

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Talecris Biotherapeutics Holdings Corp

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. BRETT INGERSOLL

  	
   

  
	
   

  	
  Name: W. Brett Ingersoll

  
	
   

  	
  Title: Chairman, Compensation Committee

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  

 

14

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

2006 RESTRICTED STOCK PLAN

 

 

Restricted
Stock Award Agreement

 

 

You
are hereby awarded Restricted Shares subject to the terms and conditions set
forth in this Restricted Stock Award Agreement (“Award Agreement” or “Award”),
and in the Talecris Biotherapeutics Holdings Corp. 2006 Restricted Stock Plan
(the “Plan”), which is attached as Exhibit A. You should
carefully review the Plan and the attached documents, and consult with your
personal financial advisor, in order to fully understand the implications of
this Award, including your tax alternatives and their consequences.

 

By
executing this Award Agreement, you agree to be bound by all of the Plan’s
terms and conditions as if they had been set out verbatim below. In addition,
you recognize and agree that all determinations, interpretations, or other
actions respecting the Plan and this Award Agreement will be made by the Board
of Directors (the “Board”) of Talecris Biotherapeutics Holdings Corp.
(the “Company”), or any Committee appointed by the Board to administer
the Plan, and shall (in the absence of manifest bad faith or fraud) be final,
conclusive and binding upon all parties, including you, your heirs, and
representatives. Capitalized terms are defined in the Plan or in this Award
Agreement.

 

1.             Specific Terms.
Your Restricted Shares have the following terms:

 

	
  Name of Participant

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Number of Shares

  Subject to Award

  	
   

  	
  

            Shares.

  
	
   

  	
   

  	
   

  
	
  Purchase Price per

  Share (if applicable)

  	
   

  	
  

  Not applicable.

  
	
   

  	
   

  	
   

  
	
  Award Date

  	
   

  	
  , 2007

  
	
   

  	
   

  	
   

  
	
  Vesting

  	
   

  	
  At the rate of one-fourth on March 31st of each of
  the years 2008, 2009, 2010 and 2011; subject to Section 2 below and to your
  Continuous Service not ending before the vesting date.

  
	
   

  	
   

  	
   

  
	
  Lifetime Transfers

  	
   

  	
  Not allowed.

  

 

2.             Special Vesting. In the event
of the termination of your Continuous Service for Cause as defined in your
employment agreement with the Company renewed as of April 1, 2007, then only a
pro-rata share of your Restricted Shares scheduled to vest on the March 31
following such event shall vest (based upon the number of days you were
employed by the Company as EC/CEO since 

 

 

the previous March 31
divided by 365). In the event of the termination of your role as EC/CEO or your
Continuous Service other than for Cause, then all Restricted Shares scheduled
to vest on the first March 31 following such event shall vest on such March 31
if your Continuous Service is not interrupted or if such termination was by
reason of death or disability and in addition a pro-rata share of your
Restricted Shares scheduled to vest on the second March 31 following such event
shall vest pro rata on the date that is one year following such termination (“Termination
Anniversary”) (based upon the number of days from the second March 31 to the
Termination Anniversary) if your Continuous Service is not interrupted or if
such termination was by reason of death or disability but no Restricted Shares
scheduled to vest more than one year after such termination shall vest even if
your Continuous Service is not interrupted through the scheduled vesting date.

 

3.             Dividends. Any dividends paid with respect to Restricted
Shares or Shares underlying Restricted Stock Units will only be distributed to
you or your duly-authorized transferee in accordance with this Section of this
Award Agreement. When Shares are delivered to you or your
duly-authorized transferee pursuant to the vesting of the Shares, you or your
duly-authorized transferee shall also be entitled to receive, with respect to
each Share delivered, (i) a number of Shares equal to the stock dividends which
were declared and paid to the holders of Shares between the Award Date and the
date such Share is issued, and (ii) a lump sum payment in an amount equal to
any cash dividends payable between the Grant Date and the settlement date. To
the extent that your Continuous Service ends before vesting of the Shares, you
will forfeit all dividends (whether paid in cash or in stock) attributable to
all such Shares.

 

4.             Issuance of Restricted
Shares. Until all vesting restrictions lapse, any certificates
that you receive for Restricted Shares will include a legend stating that they
are subject to the restrictions set forth in the Plan and this Award Agreement.
The certificates
evidencing such Restricted Shares that will be issued will bear the following
legend that shall remain in place and effective until all other vesting
restrictions lapse and new certificates are issued:

 

“The
sale or other transfer of the Share represented by this certificate, whether voluntary,
involuntary, or by operation of law, is subject to certain restrictions on
transfer set forth in the Talecris Biotherapeutics Holdings Corp. 2006
Restricted Stock Plan, and in any rules and administrative procedures adopted
pursuant to such Plan and in a related Award Agreement. A copy of the Plan,
such rules and procedures and such Award Agreement may be obtained from the
Secretary of Talecris Biotherapeutics Holdings Corp.”

 

5.             Unvested Restricted Shares.
The Company will hold all Restricted Shares in escrow until vesting occurs.
You will be reflected as the owner of record on the Company’s books and records
of any Shares issued pursuant to this Award Agreement. The Company will hold
the stock certificates for safekeeping until such Shares have become vested and
non-forfeitable. You must deliver to the Company, as soon as practicable after
the date any Shares are issued, a stock power, endorsed in blank, with respect
to any such Shares. If you forfeit any Shares, the stock power will be used to
return the certificates for the forfeited Shares to the transfer agent for
cancellation. As the owner of record of any Restricted Shares you qualify to
receive pursuant to this Award Agreement, you will be entitled to all rights of
a stockholder of the Company, including the right to vote Shares;

 

2

 

subject, however, to the
provisions of Section 3 hereof with respect to any cash or stock dividends that
are paid between the date of this Award and your receipt of shares pursuant to
a vesting event, subject in each case to the treatment of the Award upon
termination of employment before the particular record date for determining
stockholders of record entitled to the payment of the dividend or distribution.

 

6.             Section 83(b) Election Notice. If
you make an election under Section 83(b) of the Internal Revenue Code of 1986,
as amended, with respect to the Shares underlying your Restricted Shares (a “Section
83(b) Election”), you agree to provide a copy of such election to the
Company within 10 days after filing that election with the Internal Revenue
Service. Exhibit B contains a form of Section 83(b) Election, but the
Company makes no recommendation as to whether or not to make such an election.

 

7.             Designation of Beneficiary. Notwithstanding
anything to the contrary contained herein or in the Plan, following the
execution of this Award Agreement, you may expressly designate a beneficiary
(the “Beneficiary”) to your interest, if any, in this Award and any
underling Shares. You shall designate the Beneficiary by completing and
executing a designation of beneficiary agreement substantially in the form
attached hereto as Exhibit C (the “Designation of Beneficiary”)
and delivering an executed copy of the Designation of Beneficiary to the
Company.

 

8.             Restrictions on Transfer
of Award. In accordance with Section 1, lifetime transfers not
are allowed and your rights under this Award Agreement may not be sold,
pledged, or otherwise transferred without the prior written consent of the
Committee.

 

9.             Conditions on Issuance of
Shares. Notwithstanding any other provision of the Plan or of
this Award Agreement, the Committee may condition your receipt of Shares on
your execution of a shareholder agreement imposing terms generally applicable
to other similarly-situated employee-shareholders.

 

10.           Taxes. By signing this Award Agreement, you acknowledge
that you are solely responsible and liable for the satisfaction of all taxes
and penalties that may arise in connection with this Award (including any taxes
arising under Section 409A of the Code), and the Company shall not have any
obligation to indemnify or otherwise hold you harmless from any or all of such
taxes or penalties. The Committee shall have the sole discretion to interpret the
requirements of the Code, including Section 409A, for purposes of the Plan and
this Award Agreement.

 

11.           Notices. Any notice or communication required or
permitted by any provision of this Award Agreement to be given to you shall
be in writing and shall be delivered electronically, personally, or sent by
certified mail, return receipt requested, addressed to you at the last address
that the Company had for you on its records. Each party may, from time to time,
by notice to the other party hereto, specify a new address for delivery of
notices relating to this Award Agreement. Any such notice shall be deemed to be
given as of the date such notice is personally delivered or properly mailed.

 

3

 

12.           Binding Effect. Except as otherwise
provided in this Award Agreement or in the Plan, every covenant, term, and
provision of this Award Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, legatees, legal
representatives, successors, transferees, and assigns.

 

13.           Modifications. This Award Agreement may
be modified or amended at any time, in accordance with Section 9 of the Plan
and provided that you must consent in writing to any modification that
adversely and materially affects any rights or obligations under this Award
Agreement (with such an affect being presumed to arise from a modification that
would trigger a violation of Section 409A of the Code).

 

14.           Headings. Section and other headings
contained in this Award Agreement are for reference purposes only and are not
intended to describe, interpret, define or limit the scope or intent of this
Award Agreement or any provision hereof.

 

15.           Severability. Every provision of this
Award Agreement and of the Plan is intended to be severable. If any term hereof
is illegal or invalid for any reason, such illegality or invalidity shall not
affect the validity or legality of the remaining terms of this Award Agreement.

 

16.           Counterparts. This Award Agreement may
be executed by the parties hereto in separate counterparts, each of which when
so executed and delivered shall be an original, but all such counterparts shall
together constitute one and the same instrument.

 

17.           Plan Governs. By signing this Award
Agreement, you acknowledge that you have received a copy of the Plan and that
your Award Agreement is subject to all the provisions contained in the Plan,
the provisions of which are made a part of this Award Agreement and your Award
is subject to all interpretations, amendments, rules and regulations which from
time to time may be promulgated and adopted pursuant to the Plan. In the event
of a conflict between the provisions of this Award Agreement and those of the
Plan, the provisions of the Plan shall control.

 

18.           Not a Contract of Employment. By
executing this Award Agreement you acknowledge and agree that (i) any person
who is terminated before full vesting of an award, such as the one granted to
you by this Award, could claim that he or she was terminated to preclude
vesting; (ii) you promise never to make such a claim; (iii) nothing in this
Award Agreement or the Plan confers on you any right to continue an employment,
service or consulting relationship with the Company, nor shall it affect in any
way your right or the Company’s right to terminate your employment, service, or
consulting relationship at any time, with or without Cause; and (iv) the
Company would not have granted this Award to you but for these acknowledgements
and agreements.

 

19.           Pre-IPO Rights and Restrictions on Shares.
At all times prior to an Initial Public Offering, any Shares that you receive
pursuant to this Award will be subject to Section 21 of the Plan. The Company
may repurchase Shares issued pursuant to the Plan upon or after your termination
of Continuous Service. To the extent consistent with Applicable Law, any such
call (repurchase) right shall be at not less than the Fair Market Value of the Shares to be purchased on

 

4

 

the date of such purchase. The
right of the Company to repurchase shall be exercised for cash or cancellation
of purchase money indebtedness.

 

20.           Governing Law. The laws of the State of
Delaware  shall govern the validity of this
Award Agreement, the construction of its terms, and the interpretation of the
rights and duties of the parties hereto.

 

BY YOUR SIGNATURE BELOW,
along with the signature of the Company’s representative, you and the Company
agree that the Restricted Shares are awarded under and governed by the terms
and conditions of this Award Agreement and the Plan.

 

	
   

  	
  TALECRIS
  BIOTHERAPEUTICS HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  	
   

  	
   

  
	
   

  	
   

  	
   Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PARTICIPANT

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The undersigned
  Participant hereby accepts the terms of this 

  Award Agreement and the Plan.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
    Name of
  Participant:

  	
   

  	
   

  

 

5

EXHIBIT A

 

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

2006 Restricted Stock Plan

 

 

Plan
Document

 

 

EXHIBIT B

 

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

2006 Restricted Stock Plan

 

 

Section
83(b) Election Form

 

 

Attached is an Internal
Revenue Code Section 83(b) Election Form. IF YOU WISH TO MAKE A SECTION 83(B) ELECTION, YOU MUST DO SO WITHIN 30
DAYS AFTER THE DATE THE RESTRICTED SHARES COVERED BY THE ELECTION WERE
TRANSFERRED TO YOU. The
Company makes no recommendation as to whether or not to make such an election,
but in order to make the election, you must completely fill out the attached
form and file one copy with the Internal Revenue Service office where you file
your tax return. In addition, one copy of the statement also must be submitted
with your income tax return for the taxable year in which you make this
election. Finally, you also must submit a copy of the election form to the
Company within 10 days after filing that election with the Internal Revenue
Service. A Section 83(b) election normally cannot be revoked.

 

 

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

2006 Restricted Stock Plan

 

Election
to Include Value of Restricted Shares in Gross Income

in Year
of Transfer Under Internal Revenue Code Section 83(b)

 

Pursuant to Section 83(b)
of the Internal Revenue Code, I hereby elect within 30 days after receiving the
property described herein to be taxed immediately on its value specified in
item 5 below.

 

1.                                       My
General Information:

 

	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  S.S.N.

  	
   

  	
   

  
	
   

  	
  or T.I.N.:

  	
   

  	
   

  
					

 

2.                                       Description
of the property with respect to which I am making this election:

 

                                     shares
of                                     stock
of Talecris Biotherapeutics Holdings Corp. (the “Restricted Shares”).

 

3.                                       The
Restricted Shares were transferred to me on                                     ,
20      This election relates to the 20     calendar
taxable year.

 

4.                                       The
Restricted Shares are subject to the following restrictions:

 

The Restricted Shares are
forfeitable until they are earned in accordance with Section 1 of the Talecris
Biotherapeutics Holdings Corp. 2006 Restricted Stock Plan (“Plan”)
Restricted Share Award Agreement (“Award Agreement”) or other Award
Agreement or Plan provisions. The Restricted Shares generally are not
transferable until my interest becomes vested and nonforfeitable, pursuant to
the Award Agreement and the Plan.

 

5.             Fair market value:

 

The fair market value at
the time of transfer (determined without regard to any restrictions other than
restrictions which by their terms never will lapse) of the Restricted Shares
with respect to which I am making this election is $       per
share.

 

 

6.             Amount paid for Restricted Shares:

 

The amount I paid for the
Restricted Shares is $       per share.

 

7.             Furnishing statement to employer:

 

A copy of this statement
has been furnished to my employer,                                     If
the transferor of the Restricted Shares is not my employer, that entity also
has been furnished with a copy of this statement.

 

8.             Award Agreement or Plan not affected:

 

Nothing contained herein
shall be held to change any of the terms or conditions of the Award Agreement
or the Plan.

 

Dated:                                      ,
200  .

 

 

Taxpayer

 

 

EXHIBIT C

 

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

 

2006 Restricted Stock Plan

 

 

Designation of Beneficiary

 

 

In connection with the
Awards designated below that I have received pursuant to the Plan, I hereby
designate the person specified below as the beneficiary upon my death of my
interest in Awards as defined in the Company’s 2006 Restricted Stock Plan (the “Plan”).
This designation shall remain in effect until revoked in writing by me.

 

	
  Name of
  Beneficiary:

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Social Security
  No.:

  	
   

  

 

This beneficiary
designation relates to any and all of my rights under the following Award or
Awards:

 

o                  any Award that I have received or
ever receive under the Plan.

 

o                  the                                     Award
that I received pursuant to an award agreement dated                            
,           between myself and the
Company.

 

I understand that this
designation operates to entitle the above-named beneficiary, in the event of my
death, to any and all of my rights under the Award(s) designated above from the
date this form is delivered to the Company until such date as this designation
is revoked in writing by me, including by delivery to the Company of a written
designation of beneficiary executed by me on a later date.

 

	
   

  	
   

  	
   Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name of Participant

  	
   

  

 

Sworn to before me this

 

       day
of                    ,
200  

 

 

Notary Public

County of

State of

 

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

 

2005 STOCK OPTION AND INCENTIVE PLAN

 

STOCK OPTION AWARD
AGREEMENT

 

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

 

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

 

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

 

3.             Vesting.

 

3.1           Time-Based
Vesting. The Grantee shall vest in the specified number of Options as set
forth in Schedule A hereto subject to this Section 3.1 (“Time-Based Options”). If
Grantee is Executive Chairman or Chairman and Chief Executive Officer on such
dates, Time-Based Options shall vest and become exercisable in four equal
installments on April 1, 2008 and the subsequent three anniversaries of that
date. (As used herein, all references to the position of “EC/CEO” shall include
the position of Executive Chairman and Chairman and Chief Executive
Officer.)  In the event of the
termination of Grantee’s role as EC/CEO or employment for Cause as defined in
Grantee’s employment agreement with the Company renewed as of April 1, 2007,
then a pro-rata share of the Time-Based Options scheduled to vest on the April
1 following such termination shall vest on the termination date (based upon the
number of days Grantee was employed by the Company as EC/CEO since the previous
April 1 divided by 365). In the event of the termination of Grantee’s role
as EC/CEO or employment is terminated 

 

 

by reason of death or disability, then all Time-Based
Options scheduled to vest on the first April 1 following such termination and
in addition a pro-rata share of the Time-Based Options scheduled to vest on the
second April 1 following such termination (based upon the number of days from
the second April 1 to the date that is one year following such termination (“Termination
Anniversary”)) shall vest immediately. In the event of the termination of
Grantee’s role as EC/CEO other than for Cause, death or disability, then all
Time-Based Options scheduled to vest on the first April 1 following such
termination shall vest on such April 1 if Grantee remains a Key Person as of
such date and in addition a pro-rata share of the Time-Based Options scheduled
to vest on the second April 1 following such termination shall vest on the
Termination Anniversary if Grantee remains a Key Person as of such date (based
upon the number of days from the second April 1 to the Termination Anniversary)
but no Options scheduled to vest more than one year after such termination
shall vest even if Grantee maintains his status as a Key Person through the
scheduled vesting date.

 

3.2           Change
in Control. Provided that no Termination of Grantee’s status as a Key
Person has taken place prior to the effective date, upon a Change in Control as
provided in Section 3.6 of the Plan, any unvested Time Based Options shall
become fully vested.

 

3.3           Non-Vested
Options. This Option shall be exercisable to the extent (and only to the
extent) that it has vested. Except as provided above, this Option shall cease
to vest if either Grantee ceases to hold the role of EC/CEO or upon Grantee’s
Termination of Key Person status, and may be exercised after Grantee’s
Termination of Grantee’s Key Person status only as set forth in Section 4 below.
Any portion of this Option that does not vest, whether due to change in role
from EC/CEO, termination of Key Person status, or otherwise, will not be
exercisable and will be forfeited.

 

4.             Exercise
of Options Following Termination of Grantee’s Key Person Status.

 

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

 

4.2           Termination
of Grantee’s Key Person Status Because of Death, Disability or Retirement. Upon
Grantee’s Termination of Key Person status because of death, Disability or
Retirement (or upon Grantee’s death within ninety (90) days after Termination
of Grantee’s Key Person status because of Disability or 

 

2

 

Retirement), this Option, to the extent (and only to
the extent) that it is vested on the date of Termination of Grantee’s Key
Person status, may be exercised by Grantee (or Grantee’s legal representative
or authorized assignee) no later than eighteen (18) months after the date of
such Termination of Grantee’s Key Person status, but in no event later than the
Expiration Date.

 

5.             Exercise
and Restriction.

 

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

 

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

 

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

 

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

 

5.5           Issuance
of Shares. As promptly as is practicable after the receipt of the Exercise
Agreement, in form and substance satisfactory to counsel for the Company,
payment of the Exercise Price and satisfaction of applicable withholding
requirements, and execution by the Grantee of the Stockholders Agreement
applicable to all Grantees if requested by the Company, the Company shall issue
the Shares registered in the name of Grantee, Grantee’s authorized assignee, or
Grantee’s legal representative, and shall deliver certificates representing the
Shares with the appropriate legends affixed thereto. The Company may postpone
such delivery until it receives satisfactory proof 

 

3

 

that the issuance of such Shares will not violate any
of the provisions of the Securities Act of 1933, as amended (the “Securities Act”), or the Securities
Exchange Act of 1934, as amended, any rules or regulations of the Securities
and Exchange Commission promulgated thereunder, or the requirements of
applicable state law relating to authorization, issuance or sale of securities,
or until there has been compliance with the provisions of such acts or rules. Grantee
understands that the Company is under no obligation to register or qualify the
Shares with the SEC, any state securities commission or any stock exchange to
effect such compliance.

 

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

 

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

 

7.             Purchase
for Purpose of Investment.

 

In the event Grantee exercises the Option prior to an initial public
offering by the Company or counsel to the Company otherwise determines that
such representations and legends are required by law:

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

6

 

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

 

 

	
   

  	
  TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Grantee]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Grantee’s Address]

  	
   

  	
   

  

 

7

 

Schedule A

 

TERMS OF OPTION GRANT

 

Grantee Name:  Lawrence D. Stern

 

Grant Date:  

 

Total Number of
Shares Underlying the Option:

 

Option Exercise
Price:  $

 

 

Exhibit A

 

TALECRIS BIOTHERAPEUTICS
HOLDINGS CORP. 

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

STOCK OPTION EXERCISE AGREEMENT

 

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

 

	
  Grantee:

  	
   

  	
  Number of Shares
  Purchased:

  
	
  Social Security
  Number:

  	
   

  	
  Purchase Price
  per Share:

  
	
  Address:

  	
   

  	
  Aggregate
  Purchase Price:

  
	
   

  	
   

  	
  Date of Option
  Award Agreement:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Type of Option:
  Nonqualified Stock Option

  	
   

  	
  Exact Name of
  Title to Shares:

  
	
   

  	
   

  	
   

  

 

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

 

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

 

3.             Representations.
In the event Grantee exercises the Option prior to an initial public offering
by the Company or counsel to the Company otherwise determines that such
representations and legends are required by law in connection with the exercise
of the Option, Grantee hereby represents to the Company as follows:

 

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

 

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

 

A-1

 

(c)           Grantee
understands that the Shares are “restricted securities” under applicable U.S.
federal and state securities laws and that, pursuant to these laws, he or she
must hold the Shares indefinitely unless they are registered with the
Securities and Exchange Commission and qualified by state authorities, or
unless an exemption from such registration and qualification requirements is
available. Grantee acknowledges that the Company has no obligation to register
or qualify the Shares for resale. Grantee further acknowledges that if an
exemption from registration or qualification is available, it may be
conditioned on various requirements including, but not limited to, the time and
manner of sale, the holding period for the Shares and requirements relating to
the Company which are outside of Grantee’s control, and which the Company is
under no obligation to and may not be able to satisfy.

 

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

 

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

 

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

 

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

 

THE SHARES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A REPURCHASE RIGHT IN FAVOR OF 

 

A-2

 

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

 

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

 

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

 

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

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Signature of
  Grantee

  	
   

  

 

A-3

 

Spousal Consent

 

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

 

 

	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
  Signature
  of Grantee’s Spouse

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Spouse’s
  Name - Typed or Printed

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Grantee’s
  Name - Typed or Printed

  	
   

  	
   

  

 

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

 

2005 STOCK OPTION AND INCENTIVE PLAN

 

STOCK OPTION AWARD
AGREEMENT

 

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

 

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

 

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

 

3.             Vesting.

 

3.1           Performance-Based
Vesting. The Grantee shall vest in the specified number of Options as set
forth in Schedule A hereto subject to performance-based objectives subject to
this Section 3.1 (“Performance-Based Options”). The Performance-Based
Options will vest and become exercisable based on the achievement of the
Company’s annual performance objectives for each of the four years ending on
April 1 following the Grant Date (“Annual Objectives”)
as established each year by the Board of Directors (“Board”) for all optionees.
Annual Objectives shall normally be based upon achievement of budgeted EBITDA
and Free Cash Flow for the fiscal year.

 

(a)           Annual
Objectives. For a given fiscal year, where the Annual Objectives are met:
(i) the portion of the Performance-Based Options allocated to such fiscal year
shall vest on April 1st of the subsequent fiscal year, if Grantee is
Executive Chairman or Chairman and Chief Executive Officer 

 

 

on such date (As
used herein, all references to the position of “EC/CEO” shall include the
position of Executive Chairman and Chairman and Chief Executive Officer.)  ; (ii) 
in the event of the termination of Grantee’s role as EC/CEO or
employment for Cause prior to the April 1st of
the subsequent fiscal year, then the portion of the Performance-Based Options
allocated to the fiscal year in which such termination occurs shall vest on a
pro-rata basis for such part of that year that the Grantee was EC/CEO (based
upon the number of days Grantee was employed by the Company as EC/CEO during such
calendar year divided by 365); (iii) in the event of the termination of Grantee’s
role as EC/CEO other than for Cause, then all Performance-Based Options
scheduled to vest on the first April 1 following such termination shall vest on
such April 1 if Grantee remains a Key Person as of such date or if such
termination was by reason of death or disability and in addition a pro-rata
share of the Performance-Based Options scheduled to vest on the second April 1
following such termination shall vest on the date that is one year following
such termination (“Termination Anniversary”) if Grantee remains a Key Person as
of such date or if such termination was by reason of death or disability (based
upon the number of days from the second April 1 to the Termination Anniversary)
but no Options scheduled to vest more than one year after such termination
shall vest even if Grantee maintains his status as a Key Person through the
scheduled vesting date. Where the Annual Objectives for such fiscal year are
not met, the portion of the Performance-Based Options allocated to such fiscal
year shall be forfeited, unless the Board in its sole discretion determines
that all or a portion of the Performance-Based Option allocated to such fiscal
year shall vest upon meeting further conditions as defined by the Board. (As
used herein, all references to the position of “EC/CEO” shall include the
position of Executive Chairman and Chairman and Chief Executive Officer.)

 

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

 

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

 

3.2           Time-Based
Vesting. The Grantee shall vest in the specified number of Options as set
forth in Schedule A hereto subject to this Section 3.1 (“Time-Based Options”). If
Grantee is EC/CEO on such dates, Time-Based Options shall vest and become
exercisable in four equal installments on April 1, 2008 and the subsequent
three anniversaries of that date. In the event of the termination of Grantee’s
role as EC/CEO or employment for Cause as defined in Grantee’s employment 

 

2

 

agreement with the Company renewed as of April 1,
2007, then a pro-rata share of the Time-Based Options scheduled to vest on the
April 1 following such termination shall vest on the termination date (based
upon the number of days Grantee was employed by the Company as EC/CEO since the
previous April 1 divided by 365). In the event of the termination of
Grantee’s role as EC/CEO or employment is terminated by reason of death or
disability, then all Time-Based Options scheduled to vest on the first April 1
following such termination and in addition a pro-rata share of the Time-Based
Options scheduled to vest on the second April 1 following such termination
(based upon the number of days from the second April 1 to the Termination
Anniversary) shall vest immediately. In the event of the termination of Grantee’s
role as EC/CEO other than for Cause, death or disability, then all Time-Based
Options scheduled to vest on the first April 1 following such termination shall
vest on such April 1 if Grantee remains a Key Person as of such date and in
addition a pro-rata share of the Time-Based Options scheduled to vest on the
second April 1 following such termination shall vest on the Termination
Anniversary if Grantee remains a Key Person as of such date (based upon the
number of days from the second April 1 to the Termination Anniversary) but no
Options scheduled to vest more than one year after such termination shall vest
even if Grantee maintains his status as a Key Person through the scheduled
vesting date.

 

3.3           Change
in Control. Provided that no Termination of Grantee’s status as a Key
Person has taken place prior to the effective date, upon a Change in Control as
provided in Section 3.6 of the Plan, any unvested Time Based Options shall
become fully vested but only if such Change in Control occurs after March 31,
2008.

 

3.4           Non-Vested
Options. This Option shall be exercisable to the extent (and only to the
extent) that it has vested. Except as provided above, this Option shall cease
to vest if either Grantee ceases to hold the role of EC/CEO or upon Grantee’s
Termination of Key Person status, and may be exercised after Grantee’s
Termination of Grantee’s Key Person status only as set forth in Section 4 below.
Any portion of this Option that does not vest, whether due to change in role
from EC/CEO, termination of Key Person status, or otherwise, will not be
exercisable and will be forfeited.

 

4.             Exercise
of Options Following Termination of Grantee’s Key Person Status.

 

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

 

3

 

4.2           Termination
of Grantee’s Key Person Status Because of Death, Disability or Retirement. Upon
Grantee’s Termination of Key Person status because of death, Disability or
Retirement (or upon Grantee’s death within ninety (90) days after Termination
of Grantee’s Key Person status because of Disability or Retirement), this
Option, to the extent (and only to the extent) that it is vested on the date of
Termination of Grantee’s Key Person status, may be exercised by Grantee (or
Grantee’s legal representative or authorized assignee) no later than eighteen
(18) months after the date of such Termination of Grantee’s Key Person status,
but in no event later than the Expiration Date.

 

5.             Exercise
and Restriction.

 

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

 

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

 

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

 

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

 

5.5           Issuance
of Shares. As promptly as is practicable after the receipt of the Exercise
Agreement, in form and substance satisfactory to counsel for the Company,
payment of the Exercise Price and satisfaction of applicable withholding
requirements, and execution by the Grantee of the Stockholders Agreement
applicable to 

 

4

 

all Grantees if requested by the Company, the Company
shall issue the Shares registered in the name of Grantee, Grantee’s authorized
assignee, or Grantee’s legal representative, and shall deliver certificates
representing the Shares with the appropriate legends affixed thereto. The
Company may postpone such delivery until it receives satisfactory proof that
the issuance of such Shares will not violate any of the provisions of the
Securities Act of 1933, as amended (the “Securities Act”),
or the Securities Exchange Act of 1934, as amended, any rules or regulations of
the Securities and Exchange Commission promulgated thereunder, or the
requirements of applicable state law relating to authorization, issuance or
sale of securities, or until there has been compliance with the provisions of
such acts or rules. Grantee understands that the Company is under no obligation
to register or qualify the Shares with the SEC, any state securities commission
or any stock exchange to effect such compliance.

 

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

 

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

 

7.             Purchase
for Purpose of Investment.

 

In the event Grantee exercises the Option prior to an initial public
offering by the Company or counsel to the Company otherwise determines that
such representations and legends are required by law:

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

9.             Privileges
of Stock Ownership. Grantee shall not have any of the rights of a
stockholder of the Company with respect to any Shares until the Shares are
issued to Grantee and no adjustment shall be made for cash distribution in
respect of such 

 

6

 

Shares for which the distribution date (or record
date, in the event the Company becomes a corporation) is prior to the date upon
which such Grantee or permitted transferee shall become the holder of record
thereof.

 

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

 

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

 

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

 

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

 

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

 

7

 

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

 

 

	
   

  	
  TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Grantee]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Grantee’s Address]

  	
   

  	
   

  

 

8

 

Schedule A

 

TERMS OF OPTION GRANT

 

	
  Grantee Name:
  Lawrence D. Stern

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Grant Date: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total Number of
  Shares Underlying the Option:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Option Exercise
  Price: $

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Number of shares
  underlying Performance Based Options (65%)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Number of shares
  underlying Time Based Options (35%)

  	
   

  	
   

  

 

 

Exhibit A

 

TALECRIS BIOTHERAPEUTICS
HOLDINGS CORP. 

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

STOCK OPTION EXERCISE AGREEMENT

 

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

 

	
  Grantee:

  	
   

  	
  Number of Shares
  Purchased:

  
	
  Social Security
  Number:

  	
   

  	
  Purchase Price
  per Share:

  
	
  Address:

  	
   

  	
  Aggregate
  Purchase Price:

  
	
   

  	
   

  	
  Date of Option
  Award Agreement:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Type of Option:
  Nonqualified Stock Option

  	
   

  	
  Exact Name of
  Title to Shares:

  
	
   

  	
   

  	
   

  

 

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

 

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

 

3.             Representations.
In the event Grantee exercises the Option prior to an initial public offering
by the Company or counsel to the Company otherwise determines that such representations
and legends are required by law in connection with the exercise of the Option,
Grantee hereby represents to the Company as follows:

 

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

 

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

 

A-1

 

(c)           Grantee
understands that the Shares are “restricted securities” under applicable U.S.
federal and state securities laws and that, pursuant to these laws, he or she
must hold the Shares indefinitely unless they are registered with the
Securities and Exchange Commission and qualified by state authorities, or unless
an exemption from such registration and qualification requirements is available.
Grantee acknowledges that the Company has no obligation to register or qualify
the Shares for resale. Grantee further acknowledges that if an exemption from
registration or qualification is available, it may be conditioned on various
requirements including, but not limited to, the time and manner of sale, the
holding period for the Shares and requirements relating to the Company which
are outside of Grantee’s control, and which the Company is under no obligation
to and may not be able to satisfy.

 

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

 

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

 

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

 

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

 

THE SHARES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A REPURCHASE RIGHT IN FAVOR OF 

 

A-2

 

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

 

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

 

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

 

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

 

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Signature of
  Grantee

  	
   

  

 

A-3

 

Spousal Consent

 

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

 

 

	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
  Signature
  of Grantee’s Spouse

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Spouse’s
  Name - Typed or Printed

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Grantee’s
  Name - Typed or Printed

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