Document:

Exhibit 4.2

 

FIRST
AMENDED AND RESTATED

 

CERTIFICATE
OF DESIGNATIONS

 

OF

 

SERIES
A SENIOR CONVERTIBLE PREFERRED STOCK

 

OF

 

TALECRIS
BIOTHERAPEUTICS HOLDINGS CORP.

 

Talecris
Biotherapeutics Holdings Corp., a Delaware corporation (the “Corporation”),
DOES HEREBY CERTIFY,

 

That the Board of Directors of the Corporation (the “Board
of Directors”)  has previously authorized the issuance of a series of
Preferred Stock pursuant to that certain Certificate of Designations of Series A
Senior Convertible Preferred Stock, as filed with the Secretary of State of the
State of Delaware on March 31, 2005, as amended on December 5, 2006
and as further amended on March 6, 2007 (the “Series A Certificate”),

 

That the following
resolution was duly adopted by the Board of Directors by written consent
without a meeting as of September 8, 2009, in accordance with Section 141(f) of
the General Corporation Law of the State of Delaware (the “DGCL”) and
the Bylaws of the Corporation, and was approved by the holders of the Series A
Senior Convertible Preferred Stock, in accordance with the provisions of Section 242
and 228 of the DGCL and in accordance with the Amended and Restated Certificate
of Incorporation, filed as of the date hereof, authorizing the Corporation to
issue up to 40,000,010 shares of Preferred Stock, par value $0.01 per share:

 

“RESOLVED, that the previously authorized Series A
Certificate be amended and restated in its entirety and the designation, voting
powers, privileges, preferences and relative, participating, optional and other
special rights, and qualifications, limitations and restrictions thereof, of
the shares of such series, in addition to those set forth in the Amended and
Restated Certificate of Incorporation of the Corporation, filed as of the date
hereof, be fixed as follows:

 

Section 1.              Designation.  The distinctive serial designation of such
series is “Series A Senior Convertible Preferred Stock” (“Series A
Senior Convertible Preferred Stock”). 
Each share of Series A Senior Convertible Preferred Stock shall be
identical in all respects to every other share of Series A Senior
Convertible Preferred Stock.

 

Section 2.              Number of
Shares.  The number of shares of Series A
Senior Convertible Preferred Stock shall be 5,000,000.  Such number may from time to time be
increased (but not in excess of the total number of authorized shares of
Preferred Stock) or decreased (but not below the number of shares of Series A
Senior Convertible Preferred Stock then outstanding) by the Board of
Directors.  Shares of Series A Senior
Convertible Preferred

 

 

Stock that are redeemed, purchased or otherwise acquired by the
Corporation shall be cancelled and shall revert to authorized but unissued
shares of Preferred Stock undesignated as to series.

 

Section 3.              Definitions.  As used herein with respect to Series A
Senior Convertible Preferred Stock:

 

(a)           “Accrued
dividends,” with respect to any share of any class or series, means an
amount computed at the annual dividend rate, for the class or series, from the
date on which dividends on such share became cumulative to and including the
date to which such dividends are to be accrued (whether or not such dividends
have been declared), less the aggregate amount of all dividends previously paid
on such share.

 

(b)           “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 Bayer and its Affiliates shall be considered to be an Affiliate of the
Corporation or Parent or any of their respective subsidiaries.

 

(c)           “Ampersand”
means Ampersand 2001 Limited Partnership, a Delaware limited partnership.

 

(d)           “Bayer”
means Bayer HealthCare LLC, a Delaware limited liability company.

 

(e)           “Business Day”
means each Monday, Tuesday, Wednesday, Thursday or Friday on which banking
institutions in New York, New York are not authorized or obligated by law,
regulation or executive order to close.

 

(f)            “Cerberus”
means Cerberus Capital Management, L.P., a Delaware limited partnership.

 

(g)           “Common Stock”
means the Common Stock, par value $0.01 per share, of the Corporation.

 

(h)           “Credit
Agreements” means: (i) the First Lien Term Loan Credit Agreement, dated as of December 6,
2006, by and among the Corporation, Talecris Biotherapeutics, Inc.,
Precision Pharma Services, Inc., Talecris Plasma Resources, Inc., and
Morgan Stanley Senior Funding, Inc.; (ii) the Second Lien Term Loan
Credit Agreement, dated as of December 6, 2006, by and among the
Corporation, Talecris Biotherapeutics, Inc., Precision Pharma Services, Inc.,
Talecris Plasma Resources, Inc., and Morgan Stanley Senior Funding, Inc.;
and (iii) the Revolving Credit Agreement, dated as of December 6,
2006, by and among the Corporation, Talecris Biotherapeutics, 

 

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Inc.,
Precision Pharma Services, Inc., Talecris Plasma Resources, Inc.,
Wells Fargo Foothill, Inc. and Wachovia Bank, N.A., as all of the
foregoing now exist or may hereafter be amended, modified, supplemented,
extended, renewed, restated, refinanced, replaced or restructured (in whole or
in part and including any agreements with, to or in favor of any other lender
or group of lenders).

 

(i)            “Deemed
Liquidation” means any of the events to which Section 5(d), (e) or
(f) applies.

 

(j)            “Junior
Secured Convertible Notes” means the Junior Secured Convertible Notes due
2013 of the Corporation.

 

(k)           “Junior Stock”
means the Common Stock and any other class or series of stock of the Corporation
hereafter authorized over which Series A Senior Convertible Preferred
Stock has preference or priority in the payment of dividends or in the
distribution of assets on any liquidation, dissolution or winding up of the
Corporation.

 

(l)            “Parity Stock”
means any other class or series of stock of the Corporation, including the Series B
Senior Convertible Preferred Stock, that ranks on parity with Series A
Senior Convertible Preferred Stock in the payment of dividends or in the
distribution of assets on any liquidation, dissolution or winding up of the
Corporation.

 

(m)          “Person”
means any corporation, partnership, limited liability company, trust, estate,
governmental entity, natural person or any other entity that is treated as a
person under applicable law.

 

(n)           “Series B
Senior Convertible Preferred Stock” means the Series B Senior
Convertible Preferred Stock, par value $0.01 per share, of the Corporation.

 

(o)           “Stockholders Agreement”
means the Stockholders Agreement dated as of March 31, 2005 among the
Corporation, Talecris Holdings, LLC and Bayer and its affiliates party thereto
as subsequently amended.

 

Section 4.              Dividends.

 

(a)           Rate.  The Series A Senior Convertible
Preferred Stock shall accrue, but only out of funds legally available therefor,
cumulative dividends at the annual rate of 10%, compounded quarterly, on the
Liquidation Preference (as defined in Section 5 below), payable in cash,
or, if payment in cash is prohibited pursuant to this Section 4(a), at the
option of the holder in Common Stock, upon the earlier of the liquidation date
pursuant to Section 5(a) or the conversion of the Series A
Senior Convertible Preferred Stock pursuant to Section 7, on a pro rata basis with any Parity Stock; provided, however,
that no such payment shall be made in cash to the extent, but only to the
extent, prohibited by a written contract or agreement (including the
Stockholders Agreement) validly binding on the Corporation entered into on or
prior to the date of issuance of the Series A Convertible Preferred Stock
or, in the case of any of the Credit Agreements, as any such Credit Agreement
may be amended, extended, renewed, refinanced or replaced.  If and to the extent that the payment of any
dividends in cash is so prohibited, and the

 

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holder has elected to receive only cash, such payment shall be made at
the earliest time no longer so prohibited under such Certificate of
Designations or any such agreements.  No
interest, or sum of money in lieu of interest, shall be payable in respect of
any dividend payments on shares of Series A Senior Convertible Preferred
Stock which may be in arrears.  If and to
the extent that any dividends on the Series A Senior Convertible Preferred
Stock are paid in Common Stock upon conversion of the Series A Senior
Convertible Preferred Stock pursuant to Section 7, the value of such
Common Stock shall be: (i) the initial public offering price of the Common
Stock, if such conversion is made in connection with an initial public offering
of the Corporation; or (ii) the Closing Price (as defined in Section 7(k) hereof).  No fractional shares of Common Stock shall be
issued as a dividend on the Series A Senior Convertible Preferred Stock,
instead, the number of shares to be issued shall be rounded up to the nearest
whole number.

 

Section 5.              Liquidation
Rights.

 

(a)           Liquidation.  In the event of any voluntary or involuntary
liquidation, dissolution or winding up of the affairs of the Corporation or a
Deemed Liquidation, holders of Series A Senior Convertible Preferred Stock
shall be entitled, before any distribution or payment out of the assets of the
Corporation may be made to or set aside for the holders of any Junior Stock,
and on a pro rata basis with any Parity Stock, to
receive in full $100.00 per share (the “Liquidation Preference”),
together with an amount equal to all accrued dividends to the date of payment
whether or not earned or declared.  Such
date of payment shall be as promptly as legally permissible in the event of any
voluntary or involuntary liquidation, dissolution or winding up of the affairs
of the Corporation or, in the event of a Deemed Liquidation, within 45 days
thereafter.

 

(b)           Partial
Payment.  If the assets
of the Corporation are not sufficient to pay the Liquidation Preference (plus
accrued dividends to the date of payment whether or not earned or declared) in
full to all holders of Series A Senior Convertible Preferred Stock and all
holders of any Parity Stock, the amounts paid to the holders of Series A
Senior Convertible Preferred Stock and to the holders of all Parity Stock shall
be pro rata in accordance with the
respective aggregate liquidation preferences of Series A Senior
Convertible Preferred Stock and all such Parity Stock.

 

(c)           Residual
Distributions.  If the
Liquidation Preference (plus accrued dividends to the date of payment whether
or not earned or declared) has been paid in full, to all holders of Series A
Senior Convertible Preferred Stock and all holders of any Parity Stock, the
holders of Junior Stock shall be entitled to receive all remaining assets of
the Corporation according to their respective rights and preferences.

 

(d)           Merger or
Consolidation.  For purposes
of this Section 5, the merger or consolidation of the Corporation with any
other corporation shall constitute a liquidation of the Corporation unless (i) the
Corporation is the surviving corporation following the merger or consolidation
and the rights of holders of Series A Senior Convertible Preferred Stock
are not adversely affected by such merger or consolidation or (ii) if the
Corporation is not the surviving corporation following the merger or
consolidation, the surviving corporation issues securities having substantially
identical rights and privileges to the Series A Senior Convertible
Preferred Stock in exchange for outstanding Series A Senior Convertible
Preferred Stock pursuant to the merger or consolidation.

 

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(e)           Sale of
Assets.  For purposes of this Section 5,
the sale of all or substantially all of the assets of the Corporation shall
constitute a liquidation of the Corporation.

 

(f)            Change of
Control.  For purposes
of this Section 5, a Change of Control means any transaction or series of
related transactions after which (i) Cerberus, Ampersand and their
respective Affiliates collectively cease to own in the aggregate at least $50
million aggregate principal amount or liquidation preference of the Junior
Secured Convertible Notes and Series A Senior Convertible Preferred Stock
(or, if the Junior Secured Convertible Notes and Series A Senior
Convertible Preferred Stock have been converted to Common Stock, 50% of the
Common Stock issuable upon conversion thereof), (ii) a majority of the
seats on the Board of Directors of the Corporation is occupied by Persons not
designated by Cerberus, Ampersand or their respective Affiliates and (iii) another
person or group of persons owns a greater amount, on a fully diluted basis, of
the Common Stock than the Common Stock owned by Cerberus, Ampersand and their
Affiliates collectively on a fully diluted basis.

 

Section 6.              Redemption.  The Series A Senior Convertible
Preferred Stock shall not be redeemable at any time.

 

Section 7.              Conversion
Rights.  Each share of Series A
Senior Convertible Preferred Stock shall be convertible at the option of the
holder thereof at any time into fully paid and non-assessable shares of Common
Stock of the Corporation (calculated as to each conversion to the nearest
1/100th of a share) on and subject to the following terms and conditions:

 

(a)           Conversion
Rate.  The conversion rate at which
shares of Series A Senior Convertible Preferred Stock shall be convertible
into Common Stock (the “Conversion Rate”) shall initially be nine shares
of Common Stock per share of Series A Senior Convertible Preferred Stock
and shall be adjusted in certain events as provided in Subsection (e) below.

 

(b)           Surrender
of Certificates.  In order to
convert shares of Series A Senior Convertible Preferred Stock into Common
Stock the holder must surrender, at the principal office of the Corporation or
at such other office as the Board of Directors may designate, the certificate
or certificates for the shares to be converted, duly endorsed or assigned
either to the Corporation or in blank, together with irrevocable written notice
that such holder elects to convert such shares. 
Such shares shall be deemed to be converted immediately before the close
of business on the date of such surrender, and the person or persons entitled
to receive the Common Stock issuable upon such conversion shall be treated for
all purposes as the record holder or holders of such Common Stock at such
time.  As promptly as practicable on or
after such date, the Corporation shall issue and deliver at such office to the
person or persons entitled to receive the same a certificate or certificates
for the number of full shares of Common Stock issuable upon such conversion,
together with payment in lieu of any fraction of a share as provided in
Subsection (d) and together with payment in immediately available funds of
all accrued dividends, whether or not earned or declared, on the shares of Series A
Senior Convertible Preferred Stock so converted.

 

(c)           Fractional
Shares.  No fractional shares of Common
Stock shall be issued upon conversion of shares of Series A Senior
Convertible Preferred Stock, but instead of

 

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any fraction of a share that would otherwise be issuable the Corporation
shall pay an amount in cash equal to the same fraction of the Closing Price (as
defined in Subsection (1) below) on the date of surrender of the
certificate or certificates for such shares for conversion, or, if such date is
not a Trading Day (as defined in Subsection (1) below), on the next
Trading Day.  In the event that all of
the Series A Senior Convertible Preferred Stock is being converted, and
payment in cash for fractional shares is prohibited under the Credit
Agreements, then instead the number of shares to be issued shall be rounded up
to the nearest whole number to eliminate any fractional share.

 

(d)           Adjustment
of Conversion Rate.  The Conversion
Rate and the number and kind of shares of capital stock or other property
issuable on conversion shall be adjusted from time to time as follows:

 

(i)            Stock
Splits and Combinations.  In case
the Corporation shall subdivide its outstanding Common Stock into a greater
number of shares or combine its outstanding Common Stock into a smaller number
of shares, the Conversion Rate in effect immediately before the time when such
subdivision or combination becomes effective shall be adjusted so that the
holder of each share of Series A Senior Convertible Preferred Stock
converted thereafter shall be entitled to receive the number of shares of
Common Stock that such holder would have received if such shares of Series A
Senior Convertible Preferred Stock had been converted immediately prior thereto
at the Conversion Rate then in effect. 
Such adjustment shall be made successively whenever any such event shall
occur.

 

(ii)           Stock
Dividends in Common Stock.  In case the Corporation shall pay a dividend
or make a distribution in shares of Common Stock on any class of capital stock
of the Corporation, the Conversion Rate in effect immediately before the close
of business on the record date fixed for determination of stockholders entitled
to receive such dividend or distribution shall be increased by multiplying such
Conversion Rate by a fraction, of which the numerator is the sum of the number
of shares of Common Stock theretofore outstanding and the total number of
shares issued in such dividend or distribution, and the denominator is the
number of shares of Common Stock theretofore outstanding.

 

(iii)         Sales of
Common Stock below Fair Market Value.  In case the Corporation shall issue or grant
to any person (whether directly or by assumption in a merger or otherwise,
other than upon a Fundamental Change to which Section 7(d)(v) applies)
(a) rights, warrants, options, exchangeable securities or convertible
securities (each referred to herein as “Rights”) entitling such person
to subscribe for or purchase shares of Common Stock at a price per share less
than the fair market value (as determined by the Board of Directors, whose
determination in good faith shall be conclusive) (the “Fair Market Value”)
or (b) shares of Common Stock at a price per share less than the Fair
Market Value, on the record date fixed for the determination of persons
entitled to receive such Rights or such shares, the Conversion Rate in effect
immediately before the close of business on the record date fixed for such
determination shall be adjusted by multiplying such Conversion Rate by a
fraction, of which (x) the numerator shall be the number of shares of
Common Stock outstanding (including all shares of Common Stock issued or
issuable upon conversion of any convertible security other than

 

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the Series A Senior
Convertible Preferred Stock or upon the exercise of any rights, warrants or
options) at the close of business on such record date plus the number of shares
of Common Stock so offered for subscription or purchase pursuant to such
Rights, or so issued and (y) the denominator is the number of shares of
Common Stock outstanding (including all shares of Common Stock issued or
issuable upon conversion of any convertible security other than the Series A
Senior Convertible Preferred Stock or upon the exercise of any rights, warrants
or options) on such record date plus the number of shares of Common Stock which
the aggregate of the offering price of the total number of shares of Common
Stock so offered for subscription or purchase pursuant to such Rights, or so
issued, would purchase at the Fair Market Value on such record date.  If, after any such record date, any such
Rights or shares are not in fact issued, or are not exercised prior to the
expiration thereof, the Conversion Rate shall be immediately readjusted,
effective as of the date such Rights or shares expire, or the date the Board of
Directors determines not to issue such Rights or shares, to the Conversion Rate
that would have been in effect if the unexercised Rights had never been granted
or such record date had not been fixed, as the case may be.  Such adjustment shall be made successively
whenever any such event shall occur.  For
the purposes of this paragraph, the aggregate of the offering price received or
to be received by the Corporation shall include the maximum aggregate amount
(if any) payable upon exercise or conversion of such Rights.  The value of any consideration received or to
be received by the Corporation, if other than cash, is to be determined by the
Board of Directors on a reasonable basis and in good faith. Notwithstanding the
foregoing, the Conversion Rate shall not be adjusted for Rights or shares of
Common Stock issued or granted (A) to the Corporation’s or its
subsidiaries’ employees, consultants, directors or officers pursuant to stock
option, stock purchase, restricted stock or similar equity or incentive-based
compensation plans or agreements approved by the Board of Directors, (B) pursuant
to the exercise, conversion or exchange of any then outstanding convertible or
exchangeable securities, rights, options or warrants or (C) to lenders or
purchasers of debt securities of the Corporation or Talecris Holdings, LLC or
their subsidiaries in connection with debt incurred to such lenders or
purchasers.

 

(iv)          Distributions
of Indebtedness, Securities or Assets.  In case the Corporation shall distribute to
all holders of Common Stock (whether by dividend or in a merger or
consolidation or otherwise) evidences of indebtedness, shares of capital stock
of any class or series, other securities, cash or assets (other than Common
Stock, rights or warrants referred to in paragraph (iii) above and other
than as a result of a Fundamental Change), the Conversion Rate in effect
immediately before the close of business on the date fixed for payment of such
distribution shall be increased by multiplying such Conversion Rate by a
fraction, of which the numerator is the Current Market Price (determined as
provided in paragraph (vi) below) on such payment date, and the
denominator is such Current Market Price less the fair market value (as
determined by the Board of Directors, whose determination in good faith shall
be conclusive) of the portion of such evidences of indebtedness, shares of
capital stock, other securities, cash and assets so distributed applicable to
one share of Common Stock, and the holder of each share of Series A Senior
Convertible Preferred Stock converted after the close of business on the record
date set for the distribution on the Common Stock and prior to the close of
business on such payment date shall be entitled to receive, for each share of
Common

 

7

 

Stock received upon such
conversion, the portion of such evidences of indebtedness, shares of capital
stock, other securities, cash and assets so distributed applicable to one share
of Common Stock; provided, however,
that, at the election of the Board of Directors, the Corporation may (x) distribute
to such holder a due bill therefor requiring payment or delivery not later than
such payment date or (y) pay to such holder an amount in cash equal to
such fair market value.  In case the
Board of Directors shall determine that such fair market value of the portion
of such evidences of indebtedness, shares of capital stock, other securities,
cash and assets so distributed applicable to one share of Common Stock is equal
to or greater than such Current Market Price, in lieu of the foregoing
adjustment, the holder of each share of Series A Senior Convertible
Preferred Stock converted after such record date shall have the right to
receive upon conversion the amount of such evidences of indebtedness, shares of
capital stock, other securities, cash and assets that such holder would have
received had such holder converted such share prior to such record date. Such
adjustment shall be made successively whenever any such event shall occur.  In case such distribution is not made after
such a record date has been fixed, the Conversion Rate shall be readjusted to
the Conversion Rate that would have been in effect if such record date had not
been fixed.

 

(v)            Fundamental
Changes.  In case any
transaction or event (including without limitation any merger, consolidation,
sale of assets, tender or exchange offer, reclassification, compulsory share
exchange or liquidation) shall occur in which all or substantially all
outstanding Common Stock is converted into or exchanged for stock, other
securities, cash or assets (a “Fundamental Change”), the holder of each
share of Series A Senior Convertible Preferred Stock outstanding
immediately before such Fundamental Change becomes effective shall have the
right upon any subsequent conversion to receive (but only out of legally
available funds, to the extent required by applicable law) the kind and amount
of stock, other securities, cash and assets that such holder would have
received if such share had been converted immediately prior thereto; provided, however, that
if more than 50% of the value (as determined by the Board of Directors, whose
determination in good faith shall be conclusive) of such stock, other
securities, cash and assets consists of common stock of any corporation, such
holder shall have the right to receive such number of shares of such common
stock that such holder would have received if all of such value had consisted
solely of such common stock.  The Corporation
will not be a party to or permit any Fundamental Change to occur unless the
foregoing provisions are included in the terms thereof.  This paragraph shall similarly apply to any
subsequent Fundamental Change.

 

(vi)          Current
Market Price.  For purposes
of any computation under paragraphs (iii) and (iv) above, the Current
Market Price on any date means the average of the daily Closing Prices (as
defined in Subsection (l) below) for the five consecutive Trading Days
selected by the Board of Directors commencing not more than 20 Trading Days
before, and ending not later than, the earlier of such date and the day before
the record date fixed for determination of stockholders entitled to receive any
rights or warrants referred to in paragraph (iii) and any distribution
referred to in paragraph (iv).

 

(vii)         Deferral
of Certain Conversions Requiring Adjustment.  In any case in which this Subsection (e) requires
that an adjustment as a result of any event become

 

8

 

effective from and after a
record date, the Corporation may elect to defer until after the occurrence of
such event (A) issuing to the holder of any shares of Series A Senior
Convertible Preferred Stock converted after such record date and before the
occurrence of such event the additional shares of Common Stock issuable upon
such conversion over and above the shares issuable on the basis of the
Conversion Rate in effect immediately before adjustment and (B) paying to
such holder any amount in cash in lieu of a fractional share of Common Stock pursuant
to Subsection (d) above.  In any
such case the Corporation shall issue or cause a transfer agent to issue due
bills or other appropriate evidence of the right to receive the shares the
issuance of which is so deferred.

 

(viii)        Deferral
of Small Adjustments.  Any
adjustment in the Conversion Rate otherwise required by this Section 7 may
be postponed until the date of the next adjustment otherwise required to be
made up to, but not beyond, one year from the date on which it would otherwise
be required to be made, if such adjustment (together with any other adjustments
postponed pursuant to this paragraph (viii) and not theretofore made)
would not require an increase or decrease of more than 1% in such Conversion
Rate and would not, if made, entitle the holders of all then outstanding shares
of Series A Senior Convertible Preferred Stock upon conversion to receive
additional shares of Common Stock equal in the aggregate to one-tenth of one
percent (0.1%) or more of the then issued and outstanding shares of Common
Stock.  All calculations under this
Subsection (e) shall be made to the nearest cent or to the nearest 1/100th
of a share, as the case may be.

 

(ix)          Provisions
Applicable to Other Classes of Stock.  In the event that at any time, as a result of
an adjustment made pursuant to paragraph (iv) or (v) above, the
holder of any shares of Series A Senior Convertible Preferred Stock
becomes entitled to receive (but does not actually receive) any shares of
capital stock other than Common Stock of the Corporation, the number and kind
of such other shares so receivable shall thereafter be subject to adjustment
from time to time in a manner and on terms as nearly equivalent as practicable
to the provisions concerning the Common Stock contained in paragraphs (i) through
(viii) above, and the other provisions of this Subsection (e) concerning
the Common Stock shall apply on like terms to any such other shares.

 

(x)           Voluntary
Reduction in Conversion Rate.  The Board of Directors may make such
reductions in the Conversion Rate, in addition to those required by this
Subsection (e), as shall be determined by the Board of Directors to be
advisable in order to avoid taxation insofar as practicable of any dividend or
distribution of stock or rights to acquire stock or any event treated as such
for Federal income tax purposes to the recipients.  In addition, the Board of Directors may from
time to time reduce the Conversion Rate by any amount for any period of at
least 20 days if the reduction is irrevocable during such period and the Board
has determined in good faith that it is in the best interest of the
Corporation, and whenever the Conversion Rate is so reduced, the Corporation
shall mail to holders of record of Series A Senior Convertible Preferred
Stock, at least 15 days prior to the date such reduction it is to take effect,
a notice stating the reduced Conversion Rate and the period it will be in
effect.

 

9

 

(xi)          Authority
of Board of Directors.  The
Board of Directors shall have the power to resolve any ambiguity or correct any
error in this Subsection (e), and its action in so doing shall be final and
conclusive.

 

(e)           Notice of
Conversion Rate Adjustments.  Whenever the Conversion Rate is adjusted as
herein provided:

 

(i)            The Corporation
shall compute and file with each transfer agent for the shares of Series A
Senior Convertible Preferred Stock the adjusted Conversion Rate in accordance
with this Section 7 and shall prepare a certificate signed by the
Corporation’s treasurer setting forth the adjusted Conversion Rate and showing
in reasonable detail the facts upon which such adjustment is based; and

 

(ii)           A notice stating
that the Conversion Rate has been adjusted and setting forth the adjusted
Conversion Rate shall be mailed as soon as practicable to the holders of record
of outstanding shares of Series A Senior Convertible Preferred Stock at
their respective last addresses appearing on the books of the Corporation.

 

(f)            Notice of
Certain Events.  In case:

 

(i)            The Corporation
declares a dividend or other distribution on its Common Stock;

 

(ii)           The Corporation
authorizes the issuance to the holders of its Common Stock of rights or
warrants entitling them to subscribe for or purchase any shares of capital
stock of any class or any other subscription rights or warrants;

 

(iii)          Of any
reclassification of the capital stock of the Corporation (other than a
subdivision or combination of its outstanding shares of Common Stock), or of
any consolidation or merger to which the Corporation is a party and for which
approval of any stockholders of the Corporation is required, or of any sale,
transfer or other disposition of all or substantially all of the assets of the
Corporation or of any other transaction or event that would constitute or
result in a Fundamental Change; or

 

(iv)          Of the voluntary
or involuntary liquidation, dissolution or winding up of the Corporation;

 

then the Corporation shall
file with each transfer agent for the shares of Series A Senior
Convertible Preferred Stock and mail to the holders of record of outstanding
shares of Series A Senior Convertible Preferred Stock, at their respective
last addresses appearing on the books of the Corporation, at least 20 days (or
10 days in any case specified in paragraph (i) or (ii) above) before
the applicable record or effective date hereinafter specified, a notice stating
(x) the date as of which the holders of record of Common Stock to be
entitled to such dividend, distribution, rights or warrants are to be
determined, or (y) the date on which such reclassification, consolidation,
merger, sale, transfer, disposition, liquidation, dissolution or winding up or
Fundamental Change is expected to become effective, and the date as of which it
is expected that holders of record of Common Stock shall be entitled to
exchange their shares for securities, cash or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer, 

 

10

 

disposition, liquidation,
dissolution or winding up or Fundamental Change.  Failure to give notice as required by this
Subsection (g), or any defect in such notice, shall not affect the validity of
any such dividend, distribution, right, warrant, reclassification,
consolidation, merger, sale, transfer, disposition, liquidation, dissolution or
winding up or Fundamental Change, or the vote on any action authorizing such.

 

(g)           Reservation of Shares.

 

(i)            The Corporation
shall at all times reserve and keep available, free from preemptive rights, out
of its authorized but unissued Common Stock, solely for the purpose of issuance
upon conversion of shares of Series A Senior Convertible Preferred Stock,
the full number of shares of Common Stock then deliverable upon conversion of
all shares of Series A Senior Convertible Preferred Stock outstanding.

 

(ii)           In the event that
at any time the Corporation shall have outstanding any shares of capital stock,
debt securities, or other instruments or rights that are convertible into, or
exercisable or exchangeable for, shares of Series A Senior Convertible
Preferred Stock, the Corporation shall at such time reserve and keep available,
free from preemptive rights; out of its authorized but unissued Series A
Senior Convertible Preferred Stock, the full number of shares of Series A
Senior Convertible Preferred Stock then deliverable upon such conversion,
exercise or exchange.

 

(h)           Transfer Taxes on Conversion.  The Corporation shall pay any and all taxes
that may be payable in respect of the issuance or delivery of shares of Common
Stock on conversion of shares of Series A Senior Convertible Preferred
Stock pursuant hereto, other than any tax in respect of any transfer involved
in the issuance and delivery of shares of Common Stock in a name other than
that in which the shares of Series A Senior Convertible Preferred Stock so
converted were registered.  No such
issuance or delivery in a name other than that in which the shares of Series A
Senior Convertible Preferred Stock were registered shall be made unless and
until the person requesting such issuance or delivery has paid to the
Corporation the amount of any such tax or has established to the satisfaction
of the Corporation that such tax has been paid.

 

(i)            Definition of Common Stock.  For purposes of this Section 7, “Common
Stock” includes any stock of any class or series of the Corporation which
has no preference or priority in the payment of dividends or in the
distribution of assets in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Corporation.  However, shares issuable upon conversion of
shares of Series A Senior Convertible Preferred Stock shall include only
shares of the class designated as Common Stock as of the first date of issuance
of shares of Series A Senior Convertible Preferred Stock or shares of the
Corporation of any classes or series resulting from any reclassification or
reclassifications thereof and that have no preference or priority in the
payment of dividends or in the distribution of assets in the event of any
voluntary or involuntary liquidation, dissolution or winding up of the
Corporation, provided that if at any time there shall be more than one
such resulting class or series, the shares of each such class and series then
so issuable shall be substantially in the proportion which the total number of
shares of such class and series resulting from all such reclassifications bears
to the total number of shares of all such classes and series resulting from all
such reclassifications.

 

11

 

(j)            Certificate of Independent Accountants.  The certificate of any independent firm of
public accountants of recognized standing selected by the Board of Directors
shall be presumptive evidence of the correctness of any computation made under
this Section 7.

 

(k)           Definitions of Closing Price and Trading Day.  As used in this Section 7, “Closing
Price” on any day means the reported last sale price per share of Common
Stock regular way on such day or, in case no such sale takes place on such day,
the average of the reported closing bid and asked prices regular way, in each
case on the New York Stock Exchange, or, if the Common Stock is not listed or
admitted to trading on such Exchange, on the American Stock Exchange, or, if
the Common Stock is not listed or admitted to trading on such Exchange, on the
principal national securities exchange on which the Common Stock is listed or
admitted to trading, or, if the Common Stock is not listed or admitted to
trading on any national securities exchange, the average of the closing bid and
asked prices in the over-the-counter market as reported by the National
Association of Securities Dealers’ Automated Quotation System (“NASDAQ”),
or, if not so reported, as reported by the National Quotation Bureau,
Incorporated, or its successor, or, if not so reported, the average of the
closing bid and asked prices as furnished by any member of the National
Association of Securities Dealers, Inc. selected from time to time by the
Corporation for that purpose.  If on any
such date the shares of Common Stock are not listed or admitted for trading on
any national securities exchange or quoted by NASDAQ or a similar service, the
Current Market Price for the Common Stock shall be the fair market value of the
Common Stock on such date as determined in good faith by the Board of Directors
of the Corporation.  “Trading Day”
means a day on which the principal national securities exchange on which the
Common Stock is listed or admitted to trading is open for the transaction of
business or, if the Common Stock is not listed or admitted to trading on any
national securities exchange, a Monday, Tuesday, Wednesday, Thursday or Friday
on which banking institutions in New York, New York are not authorized or
obligated by law or executive order to close.

 

Section 8.              Voting Rights.

 

(a)           General.  The holders of Series A Senior
Convertible Preferred Stock shall be entitled to ten votes for each share of Common
Stock into which their shares of Series A Senior Convertible Preferred
Stock are convertible and, except as hereinafter provided, shall vote together
with the holders of Parity Stock and Common Stock (and of any other class or
series that may similarly be entitled to vote with the holders of Common Stock)
as a single class on all matters on which holders of Common Stock are entitled
to vote.

 

(b)           Other Voting Rights.  So long as any shares of Series A Senior
Convertible Preferred Stock are outstanding, in addition to any other vote or
consent of stockholders required by law or by the Certificate of Incorporation,
the vote or consent of the holders of at least a majority of the shares of Series A
Senior Convertible Preferred Stock at the time outstanding, voting separately
as a single class (subject to the proviso in this Section 8(b)), given in
person or by proxy, either in writing without a meeting or by vote at any
meeting called for the purpose, shall be necessary for effecting or validating:

 

(i)            Amendment
of Certificate of Incorporation.  Any amendment, alteration or repeal of any
provision of the Certificate of Incorporation, this Certificate of

 

12

 

Designations or By-laws of the
Corporation (whether by merger, consolidation, reclassification, combination or
otherwise), or waive any provisions thereof, in a manner that would adversely
affect the rights, preferences, privileges or powers of the Series A
Senior Convertible Preferred Stock, including any amendment of the Certificate
of Incorporation to increase or decrease (but not below the number of shares
thereof then outstanding) the authorized number of shares of the Preferred
Stock, or to authorize or create, or increase the authorized amount of, any
shares of any class or series or any securities convertible into shares of any
class or series of capital stock of the Corporation ranking on parity with Series A
Senior Convertible Preferred Stock and all such other series in the payment of
dividends or in the distribution of assets on any liquidation, dissolution or
winding up of the Corporation; provided, however, that the
amendment of the Certificate of Incorporation so as to authorize or create, or
to increase the authorized amount of, any Junior Stock shall not be deemed to
affect adversely the powers, preferences or rights of the Series A Senior
Convertible Preferred Stock;

 

(ii)           Authorization
of Senior Stock.  Any amendment
or alteration of the Certificate of Incorporation (including without limitation
by merger, consolidation, reclassification, combination or otherwise) to
authorize or create, or increase the authorized amount of, or obligate itself
to authorize, issue or increase the amount of, any shares of any class or
series or any securities convertible into or exchangeable for shares of any
class or series of capital stock of the Corporation ranking prior to or on
parity with Series A Senior Convertible Preferred Stock with respect to
rights, privileges, liquidation preferences, dividends or distributions; or

 

(iii)         Certain
Mergers and Consolidations.  Any merger or consolidation of the
Corporation with or into any entity other than a corporation, or any merger or
consolidation of the Corporation with or into any other corporation unless the
surviving or resulting corporation, or a corporation controlling such
corporation that issues shares or other securities in such merger or
consolidation, will thereafter have no class or series of shares or other
securities either authorized or outstanding ranking prior to Series A
Senior Convertible Preferred Stock in the payment of dividends or in the
distribution of assets on any liquidation, dissolution or winding up, except
the same number of shares and the same amount of other securities with the same
voting powers, preferences and special rights as the shares and securities of
the Corporation respectively authorized and outstanding immediately before such
merger or consolidation, and each share of Series A Senior Convertible
Preferred Stock outstanding immediately before such merger or consolidation is
changed thereby into the same number of shares, with the same voting powers,
preferences and special rights, of such corporation;

 

provided, however, that if any such amendment, alteration or repeal would
affect adversely the powers, preferences or rights of the Series A Senior
Convertible Preferred Stock and any other series of the Preferred Stock
similarly entitled to vote upon the matters specified herein in substantially
the same manner, it shall be sufficient if the holders of Series A Senior
Convertible Preferred Stock and all such other series so adversely affected
vote thereon together as a single class, regardless of series.

 

13

 

Section 9.              Certain Covenants.  So long as any shares of Series A Senior
Convertible Preferred Stock are outstanding, in addition to any other vote or
consent of stockholders required by law or by the Certificate of Incorporation,
the vote or consent of the holders of at least a majority of the aggregate
shares of Series A Senior Convertible Preferred Stock and Series B
Senior Convertible Preferred Stock at the time outstanding, voting together as
a single class on the basis of one vote for each share of Common Stock into
which shares of Series A Senior Convertible Preferred Stock and Series B
Senior Convertible Preferred Stock are convertible, given in person or by
proxy, either in writing without a meeting or by vote at any meeting called for
the purpose, shall be necessary for the Corporation to:

 

(a)           (i) dissolve, liquidate
or wind-up the Corporation or carry out any partial liquidation or distribution
or any transaction in the nature of a partial liquidation or distribution, (ii) reclassify
or recapitalize any shares of the Corporation’s capital stock, (iii) directly
or indirectly, redeem, purchase, or otherwise acquire for value (including
through an exchange), or set apart money or other property for any redemption,
purchase or acquisition of, or other analogous fund for the redemption,
purchase, acquisition of, any Junior Stock or securities convertible into or
exchangeable for Junior Stock, other than (A) the redemption of shares of
Common Stock, par value $0.01 per share, of the Corporation pursuant to Section 2.01(a) of
the Stockholders Agreement, and (B) the repurchase of Junior Stock or
options to purchase Junior Stock awarded pursuant to a compensatory plan or
grant approved by the Board of Directors of the Corporation, or (iv) file
any voluntary bankruptcy petitions or consent to the filing of any such
bankruptcy petition or consent to the appointment of any receiver, custodian,
liquidator or trustee for the Corporation or any material portion of its
properties;

 

(b)           acquire, whether by way of
asset purchase, recapitalization, merger, consolidation, purchase of stock or
otherwise, a controlling interest in any other person or entity, or all or any
substantial part of the assets of any other person or entity, or any operating
division or business line of any other person or entity, in each case outside
the ordinary course of business, except to the extent that the aggregate value
of the consideration paid (including without limitation indebtedness assumed)
in connection therewith, together with the aggregate value of the consideration
paid (including without limitation indebtedness assumed) in connection with any
related transaction, is less than $20,000,000; or

 

(c)           convey, sell, lease, assign,
transfer, exchange or otherwise dispose of any of its property, business or assets,
or permit the conveyance, sale, lease, assignment, transfer, exchange or other
disposition of any property, business or assets of any consolidated subsidiary
of the Corporation, whether now owned or hereafter acquired, for an aggregate
value of consideration paid (including without limitation indebtedness assumed)
in excess of $20,000,000 in any one transaction or series of related
transactions, except for (i) the sale or other disposition of any tangible
or intangible personal property that has become obsolete or worn out and is
disposed of in the ordinary course of business, (ii) the sale or other
disposition of inventory made in the ordinary course of business, (iii) capitalized
leases and sale and leaseback transactions, (iv) the license or sub-license
of any intellectual property, or (v) the sale of the Corporation which is
structured as a sale of all or substantially all of the assets of the
Corporation.

 

Section 10.            Other Rights.  The shares of Series A Senior
Convertible Preferred Stock shall not have any voting powers, preferences or
relative; participating, optional or other special

 

14

 

rights, or qualifications, limitations or restrictions thereof, other
than as set forth herein or in the Certificate of Incorporation of the
Corporation.

 

Section 11.            Limitations on Transfer.  If any holder of Series A Senior
Convertible Preferred Stock (i) sells, assigns, transfers (voluntarily or
involuntarily), exchanges (by merger or otherwise) or otherwise disposes of or (ii) grants
a lien, encumbrance, pledge or other form of security interest in its interest
in (collectively, “Transfer”) all or a portion of the shares of Series A
Senior Convertible Preferred Stock held by it to any Person, then such holder
shall simultaneously Transfer to such Person a pro rata portion of the Junior
Secured Convertible Notes held by such holder. For purposes of this Section 11,
a “pro rata portion” of the Junior Secured Convertible Notes shall be
that principal amount (including capitalized interest) of the Junior Secured
Convertible Notes obtained by multiplying (A) the principal amount
(including capitalized interest) of the Junior Secured Convertible Notes held
by such holder immediately prior to such Transfer by (B) a fraction, the
numerator of which shall be the number of shares of Series A Senior
Convertible Preferred Stock held by such holder that is subject to the proposed
Transfer and the denominator of which shall be the total number of shares of Series A
Senior Convertible Preferred Stock then held by such holder.  The Series A Senior Convertible
Preferred Stock is transferable only in whole shares.

 

Section 12.            Restatement of Certificate.  Upon any restatement of the Certificate of
Incorporation of the Corporation, Sections 1 through 11 of this certificate of
designations shall be included in Article 4 of the Amended and Restated
Certificate of Incorporation under the heading “Series A Senior
Convertible Preferred Stock” and this Section 12 may be omitted.  If the Board of Directors so determines, the
numbering of Sections 1 through 11 may be changed for convenience of reference
or for any other proper purpose.”

 

15

 

IN
WITNESS WHEREOF, Talecris Biotherapeutics Holdings Corp. has caused this
certificate to be signed by Lawrence D. Stern, its Chairman and Chief Executive
Officer, this 9th day of September, 2009.

 

	
   

  	
  TALECRIS BIOTHERAPEUTICS

  
	
   

  	
  HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Lawrence D. SternExhibit
4.3

 

FIRST
AMENDED AND RESTATED

 

CERTIFICATE
OF DESIGNATIONS

 

OF

 

SERIES
B SENIOR CONVERTIBLE PREFERRED STOCK

 

OF

 

TALECRIS
BIOTHERAPEUTICS HOLDINGS CORP.

 

Talecris Biotherapeutics
Holdings Corp., a Delaware corporation (the Corporation”), DOES HEREBY
CERTIFY,

 

That the Board of Directors
of the Corporation (the “Board of Directors”) has previously authorized
the issuance of a series of Preferred Stock pursuant to that certain
Certificate of Designations of Series B Senior Convertible Preferred Stock,
as filed with the Secretary of State of the State of Delaware on March 31,
2005, as amended on December 5, 2006 and as further amended on March 6,
2007 (the “Series B Certificate”),

 

That the following
resolution was duly adopted by the Board of Directors by written consent
without a meeting as of September 8, 2009, in accordance with Section 141(f) of
the General Corporation Law of the State of Delaware (the “DGCL”) and
the Bylaws of Corporation, and was approved by the holders of the Series B
Senior Convertible Preferred Stock, in accordance with the provisions of Section 242
and 228 of the DGCL and in accordance with the Amended and Restated Certificate
of Incorporation, filed as of the date hereof, authorizing the Corporation to
issue up to 40,000,010 shares of Preferred Stock, par value $0.01 per share:

 

“RESOLVED, that the
previously authorized Series B Certificate be amended and restated in its
entirety and the designation, voting powers, privileges, preferences and
relative, participating, optional and other special rights, and qualifications,
limitations and restrictions thereof, of the shares of such series, in addition
to those set forth in the Amended and Restated Certificate of Incorporation of
the Corporation, filed as of the date hereof, be fixed as follows:

 

Section 1.              Designation.  The distinctive serial designation of such
series is “Series B Senior Convertible Preferred Stock” (“Series B
Senior Convertible Preferred Stock”). Each share of Series B Senior
Convertible Preferred Stock shall be identical in all respects to every other
share of Series B Senior Convertible Preferred Stock.

 

Section 2.              Number
of Shares. The number of shares of Series B Senior
Convertible Preferred Stock shall be 5,000,000. Such number may from time to
time be 

 

 

increased (but not in excess
of the total number of authorized shares of Preferred Stock) or decreased (but
not below the number of shares of Series B Senior Convertible Preferred
Stock then outstanding) by the Board of Directors. Shares of Series B
Senior Convertible Preferred Stock that are redeemed, purchased or otherwise
acquired by the Corporation shall be cancelled and shall revert to authorized
but unissued shares of Preferred Stock undesignated as to series.

 

Section 3.              Definitions. As used
herein with respect to Series B Senior Convertible Preferred Stock:

 

(a)           “Accrued
dividends,” with respect to any share of any class or series, means an
amount computed at the annual dividend rate, for the class or series, from the
date on which dividends on such share became cumulative to and including the
date to which such dividends are to be accrued (whether or not such dividends
have been declared), less the aggregate amount of all dividends previously paid
on such share.

 

(b)           “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 Bayer and its Affiliates
shall be considered to be an Affiliate of the Corporation or Parent or any of
their respective subsidiaries.

 

(c)           “Ampersand” means Ampersand
2001 Limited Partnership, a Delaware limited partnership.

 

(d)           “Bayer” means Bayer HealthCare
LLC, a Delaware limited liability company.

 

(e)           “Business Day” means each
Monday, Tuesday, Wednesday, Thursday or Friday on which banking institutions in
New York, New York are not authorized or obligated by law, regulation or
executive order to close.

 

(f)            “Cerberus” means Cerberus
Capital Management, L.P., a Delaware limited partnership.

 

(g)           “Common Stock” means the
Common Stock, par value $0.01 per share, of the Corporation.

 

2

 

(h)           “Credit Agreements” means: (i) the
First Lien Term Loan Credit Agreement, dated as of December 6, 2006, by
and among the Corporation, Talecris Biotherapeutics, Inc., Precision
Pharma Services, Inc., Talecris Plasma Resources, Inc., and Morgan
Stanley Senior Funding, Inc.; (ii) the Second Lien Term Loan Credit
Agreement, dated as of December 6, 2006, by and among the Corporation,
Talecris Biotherapeutics, Inc., Precision Pharma Services, Inc.,
Talecris Plasma Resources, Inc., and Morgan Stanley Senior Funding, Inc.;
and (iii) the Revolving Credit Agreement, dated as of December 6,
2006, by and among the Corporation, Talecris Biotherapeutics, Inc.,
Precision Pharma Services, Inc., Talecris Plasma Resources, Inc.,
Wells Fargo Foothill, Inc. and Wachovia Bank, N.A, as all of the foregoing
now exist or may hereafter be amended, modified, supplemented, extended,
renewed, restated, refinanced, replaced or restructured (in whole or in part
and including any agreements with, to or in favor of any other lender or group
of lenders).

 

(i)            “Deemed Liquidation” means
any of the events to which Section 5(d), (e) or (f) applies.

 

(j)            “Junior Secured Convertible Notes”
means the Junior Secured Convertible Notes due 2013 of the Corporation.

 

(k)           “Junior Stock” means the
Common Stock and any other class or series of stock of the Corporation hereafter
authorized over which Series B Senior Convertible Preferred Stock has
preference or priority in the payment of dividends or in the distribution of
assets on any liquidation, dissolution or winding up of the Corporation.

 

(1)           “Parity Stock” means any other
class or series of stock of the Corporation, including the Series A Senior
Convertible Preferred Stock, that ranks on parity with Series B Senior
Convertible Preferred Stock in the payment of dividends or in the distribution
of assets on any liquidation, dissolution or winding up of the Corporation.

 

(m)          “Person” means any corporation,
partnership, limited liability company, trust, estate, governmental entity,
natural person or any other entity that is treated as a person under applicable
law.

 

(n)           “Series A Senior Convertible
Preferred Stock” means the Series A Senior Convertible Preferred
Stock, par value $0.01 per share, of the Corporation.

 

(o)           “Stockholders Agreement” means
the Stockholders Agreement dated as of March 31, 2005 among the Corporation,
Talecris Holdings, LLC and Bayer and its affiliates party thereto as
subsequently amended.

 

3

 

Section 4.              Dividends.

 

(a)           Rate. The Series B
Senior Convertible Preferred Stock shall accrue, but only out of funds legally
available therefor, cumulative dividends at the annual rate of 10%, compounded
quarterly, on the Liquidation Preference (as defined in Section 5 below),
payable in cash, or, if payment in cash is prohibited pursuant to this Section 4(a),
at the option of the holder in Common Stock, upon the earlier of the
liquidation date pursuant to Section 5(a) or the conversion of the Series B
Senior Convertible Preferred Stock pursuant to Section 7, on a pro rata basis with any Parity Stock; provided, however,
that no such payment shall be made in cash to the extent, but only to the
extent, prohibited by a written contract or agreement (including the
Stockholders Agreement) validly binding on the Corporation entered into on or
prior to the date of issuance of the Series B Convertible Preferred Stock
or, in the case of any of the Credit Agreements, as any such Credit Agreement
may be amended, extended, renewed, refinanced or replaced.  If and to the extent that the payment of any
dividends in cash is so prohibited, and the holder has elected to receive only
cash, such payment shall be made at the earliest time no longer so prohibited
under such Certificate of Designations or any such agreements.  No interest, or sum of money in lieu of
interest, shall be payable in respect of any dividend payments on shares of Series B
Senior Convertible Preferred Stock which may be in arrears.  If and to the extent that any dividends on
the Series B Senior Convertible Preferred Stock are paid in Common Stock
upon conversion of the Series B Senior Convertible Preferred Stock
pursuant to Section 7, the value of such Common Stock shall be: (i) the
initial public offering price of the Common Stock, if such conversion is made
in connection with an initial public offering of the Corporation; or (ii) the
Closing Price (as defined in Section 7(k) hereof).  No fractional shares of Common Stock shall be
issued as a dividend on the Series B Senior Convertible Preferred Stock,
instead, the number of shares to be issued shall be rounded up to the nearest
whole number..

 

Section 5.              Liquidation
Rights.

 

(a)           Liquidation. In the event
of any voluntary or involuntary liquidation, dissolution or winding up of the
affairs of the Corporation or a Deemed Liquidation, holders of Series B
Senior Convertible Preferred Stock shall be entitled, before any distribution
or payment out of the assets of the Corporation may be made to or set aside for
the holders of any Junior Stock, and on a pro rata basis
with any Parity Stock, to receive in full $100.00 per share (the “Liquidation
Preference”), together with an amount equal to all accrued dividends to the
date of payment whether or not earned or declared. Such date of payment shall
be as promptly as legally permissible in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the affairs of the Corporation or, in
the event of a Deemed Liquidation, within 45 days thereafter.

 

(b)           Partial Payment. If the assets
of the Corporation are not sufficient to pay the Liquidation Preference (plus
accrued dividends to the date of payment whether or not earned or declared) in
full to all holders of Series B Senior Convertible Preferred Stock and all
holders of any Parity Stock, the amounts paid to the holders of Series B
Senior Convertible 

 

4

 

Preferred Stock and to the
holders of all Parity Stock shall be pro rata in accordance with the respective
aggregate liquidation preferences of Series B Senior Convertible Preferred
Stock and all such Parity Stock.

 

(c)           Residual
Distributions. If the Liquidation Preference (plus accrued
dividends to the date of payment whether or not earned or declared) has been
paid in full to all holders of Series B Senior Convertible Preferred Stock
and all holders of any Parity Stock, the holders of Junior Stock shall be
entitled to receive all remaining assets of the Corporation according to their
respective rights and preferences.

 

(d)           Merger or
Consolidation. For purposes of this Section 5, the merger or
consolidation of the Corporation with any other corporation shall constitute a
liquidation of the Corporation unless (i) the Corporation is the surviving
corporation following the merger or consolidation and the rights of holders of Series B
Senior Convertible Preferred Stock are not adversely affected by such merger or
consolidation or (ii) if the Corporation is not the surviving corporation
following the merger or consolidation, the surviving corporation issues
securities having substantially identical rights and privileges to the Series B
Senior Convertible Preferred Stock in exchange for outstanding Series B
Senior Convertible Preferred Stock pursuant to the merger or consolidation.

 

(e)           Sale of Assets. For purposes
of this Section 5, the sale of all or substantially all of the assets of
the Corporation shall constitute a liquidation of the Corporation.

 

(f)            Change of Control. For purposes
of this Section 5, a Change of Control means any transaction or series of
related transactions after which (i) Cerberus, Ampersand and their
respective Affiliates collectively cease to own in the aggregate at least $50
million aggregate principal amount or liquidation preference of the Junior
Secured Convertible Notes and Series B Senior Convertible Preferred Stock
(or, if the Junior Secured Convertible Notes and Series B Senior
Convertible Preferred Stock have been converted to Common Stock, 50% of the
Common Stock issuable upon conversion thereof), (ii) a majority of the
seats on the Board of Directors of the Corporation is occupied by Persons not
designated by Cerberus, Ampersand or their respective Affiliates and (iii) another
person or group of persons owns a greater amount, on a fully diluted basis, of
the Common Stock than the Common Stock owned by Cerberus, Ampersand and their
Affiliates collectively on a fully diluted basis.

 

Section 6.              Redemption. The Series B
Senior Convertible Preferred Stock shall not be redeemable at any time.

 

Section 7.              Conversion
Rights. Each share of Series B Senior Convertible Preferred Stock shall
be convertible at the option of the holder thereof at any time into fully paid
and non-assessable shares of Common Stock of the Corporation (calculated as to
each conversion to the nearest 1/100th of a share) on and subject to the
following terms and conditions:

 

5

 

(a)           Conversion Rate. The
conversion rate at which shares of Series B Senior Convertible Preferred
Stock shall be convertible into Common Stock (the “Conversion Rate”)
shall initially be nine shares of Common Stock per share of Series B
Senior Convertible Preferred Stock and shall be adjusted in certain events as
provided in Subsection (e) below.

 

(b)           Surrender of
Certificates. In order to convert shares of Series B Senior
Convertible Preferred Stock into Common Stock the holder must surrender, at the
principal office of the Corporation or at such other office as the Board of
Directors may designate, the certificate or certificates for the shares to be
converted, duly endorsed or assigned either to the Corporation or in blank,
together with irrevocable written notice that such holder elects to convert
such shares. Such shares shall be deemed to be converted immediately before the
close of business on the date of such surrender, and the person or persons entitled
to receive the Common Stock issuable upon such conversion shall be treated for
all purposes as the record holder or holders of such Common Stock at such time.
As promptly as practicable on or after such date, the Corporation shall issue
and deliver at such office to the person or persons entitled to receive the
same a certificate or certificates for the number of full shares of Common
Stock issuable upon such conversion, together with payment in lieu of any
fraction of a share as provided in Subsection (d) and together with
payment in immediately available funds of all accrued dividends, whether or not
earned or declared, on the shares of Series B Senior Convertible Preferred
Stock so converted.

 

(c)           Fractional Shares. No fractional
shares of Common Stock shall be issued upon conversion of shares of Series B
Senior Convertible Preferred Stock, but instead of any fraction of a share that
would otherwise be issuable the Corporation shall pay an amount in cash equal
to .the same fraction of the Closing Price (as defined in Subsection (1) below)
on the date of surrender of the certificate or certificates for such shares for
conversion, or, if such date is not a Trading Day (as defined in Subsection (1) below),
on the next Trading Day.  In the event
that all of the Series B Senior Convertible Preferred Stock is being
converted, and payment in cash for fractional shares is prohibited under the
Credit Agreements, then instead the number of shares to be issued shall be
rounded up to the nearest whole number to eliminate any fractional share.

 

(d)           Adjustment of
Conversion Rate. The Conversion Rate and the number and kind of
shares of capital stock or other property issuable on conversion shall be
adjusted from time to time as follows:

 

(i)            Stock Splits and Combinations. In case the
Corporation shall subdivide its outstanding Common Stock into a greater number
of shares or combine its outstanding Common Stock into a smaller number of
shares, the Conversion Rate in effect immediately before the time when such
subdivision or combination becomes effective shall be adjusted so that the
holder of each share of Series B Senior Convertible Preferred Stock
converted thereafter shall be entitled to receive the number of shares of
Common Stock that such holder would have received if such shares of Series B
Senior Convertible Preferred Stock had been converted immediately prior 

 

6

 

thereto at the Conversion Rate then in
effect. Such adjustment shall be made successively whenever any such event
shall occur.

 

(ii)           Stock Dividends in Common Stock. In case the
Corporation shall pay a dividend or make a distribution in shares of Common
Stock on any class of capital stock of the Corporation, the Conversion Rate in
effect immediately before the close of business on the record date fixed for
determination of stockholders entitled to receive such dividend or distribution
shall be increased by multiplying such Conversion Rate by a fraction, of which
the numerator is the sum of the number of shares of Common Stock theretofore
outstanding and the total number of shares issued in such dividend or
distribution, and the denominator is the number of shares of Common Stock
theretofore outstanding.

 

(iii)         Sales of Common Stock below Fair Market
Value. In case the Corporation shall issue or grant to any person (whether
directly or by assumption in a merger or otherwise, other than upon a
Fundamental Change to which Section 7(d)(v) applies) (a) rights,
warrants, options, exchangeable securities or convertible securities (each
referred to herein as “Rights”) entitling such person to subscribe for
or purchase shares of Common Stock at a price per share less than the fair
market value (as determined by the Board of Directors, whose determination in
good faith shall be conclusive) (the “Fair Market Value”) or (b) shares
of Common Stock at a price per share less than the Fair Market Value, on the
record date fixed for the determination of persons entitled to receive such
Rights or such shares, the Conversion Rate in effect immediately before the
close of business on the record date fixed for such determination shall be
adjusted by multiplying such Conversion Rate by a fraction, of which (x) the
numerator shall be the number of shares of Common Stock outstanding (including
all shares of Common Stock issued or issuable upon conversion of any
convertible security other than the Series B Senior Convertible Preferred
Stock or upon the exercise of any rights, warrants or options) at the close of
business on such record date plus the number of shares of Common Stock so
offered for subscription or purchase pursuant to such Rights, or so issued and (y) the
denominator is the number of shares of Common Stock outstanding (including all
shares of Common Stock issued or issuable upon conversion of any convertible
security other than the Series B Senior Convertible Preferred Stock or
upon the exercise of any rights, warrants or options) on such record date plus
the number of shares of Common Stock which the aggregate of the offering price
of the total number of shares of Common Stock so offered for subscription or
purchase pursuant to such Rights, or so issued, would purchase at the Fair
Market Value on such record date. If, after any such record date, any such
Rights or shares are not in fact issued, or are not exercised prior to the
expiration thereof, the Conversion Rate shall be immediately readjusted,
effective as of the date such Rights or shares expire, or the date the Board of
Directors determines not to issue such Rights or shares, to the Conversion Rate
that would have been in effect if the unexercised Rights had never been granted
or such record date had not been fixed, as the case may be. Such adjustment
shall be made successively whenever any such event shall occur. For 

 

7

 

the purposes of this paragraph, the aggregate
of the offering price received or to be received by the Corporation shall
include the maximum aggregate amount (if any) payable upon exercise or
conversion of such Rights. The value of any consideration received or to be
received by the Corporation, if other than cash, is to be determined by the
Board of Directors on a reasonable basis and in good faith. Notwithstanding the
foregoing, the Conversion Rate shall not be adjusted for Rights or shares of
Common Stock issued or granted (A) to the Corporation’s or its
subsidiaries’ employees, consultants, directors or officers pursuant to stock
option, stock purchase, restricted stock or similar equity or incentive-based
compensation plans or agreements approved by the Board of Directors, (B) pursuant
to the exercise, conversion or exchange of any then outstanding convertible or
exchangeable securities, rights, options or warrants or (C) to lenders or
purchasers of debt securities of the Corporation or Talecris Holdings, LLC or
their subsidiaries in connection with debt incurred to such lenders or
purchasers.

 

(iv)          Distributions of Indebtedness,
Securities or Assets. In case the Corporation shall distribute to all
holders of Common Stock (whether by dividend or in a merger or consolidation or
otherwise) evidences of indebtedness, shares of capital stock of any class or
series, other securities, cash or assets (other than Common Stock, rights or
warrants referred to in paragraph (iii) above and other than as a result
of a Fundamental Change), the Conversion Rate in effect immediately before the
close of business on the date fixed for payment of such distribution shall be
increased by multiplying such Conversion Rate by a fraction, of which the
numerator is the Current Market Price (determined as provided in paragraph (vi) below)
on such payment date, and the denominator is such Current Market Price less the
fair market value (as determined by the Board of Directors, whose determination
in good faith shall be conclusive) of the portion of such evidences of
indebtedness, shares of capital stock, other securities, cash and assets so
distributed applicable to one share of Common Stock, and the holder of each
share of Series B Senior Convertible Preferred Stock converted after the
close of business on the record date set for the distribution on the Common
Stock and prior to the close of business on such payment date shall be entitled
to receive, for each share of Common Stock received upon such conversion, the
portion of such evidences of indebtedness, shares of capital stock, other
securities, cash and assets so distributed applicable to one share of Common
Stock; provided, however,
that, at the election of the Board of Directors, the Corporation may (x) distribute
to such holder a due bill therefor requiring payment or delivery not later than
such payment date or (y) pay to such holder an amount in cash equal to
such fair market value. In case the Board of Directors shall determine that
such fair market value of the portion of such evidences of indebtedness, shares
of capital stock, other securities, cash and assets so distributed applicable
to one share of Common Stock is equal to or greater than such Current Market
Price, in lieu of the foregoing adjustment, the holder of each share of Series B
Senior Convertible Preferred Stock converted after such record date shall have
the right to receive upon conversion the amount of such evidences of
indebtedness, shares of capital stock, other securities, cash and assets that
such holder would have 

 

8

 

received had such holder converted such share
prior to such record date. Such adjustment shall be made successively whenever
any such event shall occur. In case such distribution is not made after such a
record date has been fixed, the Conversion Rate shall be readjusted to the
Conversion Rate that would have been in effect if such record date had not been
fixed.

 

(v)            Fundamental Changes. In case any transaction or
event (including without limitation any merger, consolidation, sale of assets,
tender or exchange offer, reclassification, compulsory share exchange or
liquidation) shall occur in which all or substantially all outstanding Common
Stock is converted into or exchanged for stock, other securities, cash or
assets (a “Fundamental Change”), the holder of each share of Series B
Senior Convertible Preferred Stock outstanding immediately before such
Fundamental Change becomes effective shall have the right upon any subsequent
conversion to receive (but only out of legally available funds, to the extent
required by applicable law) the kind and amount of stock, other securities,
cash and assets that such holder would have received if such share had been
converted immediately prior thereto; provided, however, that if more than 50% of the value (as determined
by the Board of Directors, whose determination in good faith shall be
conclusive) of such stock, other securities, cash and assets consists of common
stock of any corporation, such holder shall have the right to receive such
number of shares of such common stock that such holder would have received if
all of such value had consisted solely of such common stock. The Corporation
will not be a party to or permit any Fundamental Change to occur unless the
foregoing provisions are included in the terms thereof. This paragraph shall
similarly apply to any subsequent Fundamental Change.

 

(vi)          Current Market Price. For purposes
of any computation under paragraphs (iii) and (iv) above, the Current
Market Price on any date means the average of the daily Closing Prices (as
defined in Subsection (1) below) for the five consecutive Trading Days
selected by the Board of Directors commencing not more than 20 Trading Days
before, and ending not later than, the earlier of such date and the day before
the record date fixed for determination of stockholders entitled to receive any
rights or warrants referred to in paragraph (iii) and any distribution
referred to in paragraph (iv).

 

(vii)         Deferral of Certain Conversions
Requiring Adjustment. In any case in which this Subsection (e) requires
that an adjustment as a result of any event become effective from and after a
record date, the Corporation may elect to defer until after the occurrence of
such event (A) issuing to the holder of any shares of Series B Senior
Convertible Preferred Stock converted after such record date and before the
occurrence of such event the additional shares of Common Stock issuable upon
such conversion over and above the shares issuable on the basis of the
Conversion Rate in effect immediately before adjustment and (B) paying to
such holder any amount in cash in lieu of a fractional share of Common Stock
pursuant to Subsection (d) above. In any such case the Corporation shall
issue or cause a transfer agent to issue due bills or other 

 

9

 

appropriate evidence of the right to receive
the shares the issuance of which is so deferred.

 

(viii)        Deferral of Small Adjustments. Any
adjustment in the Conversion Rate otherwise required by this Section 7 may
be postponed until the date of the next adjustment otherwise required to be
made up to, but not beyond, one year from the date on which it would otherwise
be required to be made, if such adjustment (together with any other adjustments
postponed pursuant to this paragraph (viii) and not theretofore made)
would not require an increase or decrease of more than 1% in such Conversion
Rate and would not, if made, entitle the holders of all then outstanding shares
of Series B Senior Convertible Preferred Stock upon conversion to receive
additional shares of Common Stock equal in the aggregate to one-tenth of one
percent (0.1%) or more of the then issued and outstanding shares of Common
Stock. All calculations under this Subsection (e) shall be made to the
nearest cent or to the nearest 1/100th of a share, as the case may be.

 

(ix)          Provisions Applicable to Other Classes
of Stock. In the event that at any time, as a result of an
adjustment made pursuant to paragraph (iv) or (v) above, the holder
of any shares of Series B Senior Convertible Preferred Stock becomes
entitled to receive (but does not actually receive) any shares of capital stock
other than Common Stock of the Corporation, the number and kind of such other
shares so receivable shall thereafter be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the
provisions concerning the Common Stock contained in paragraphs (i) through
(viii) above, and the other provisions of this Subsection (e) concerning
the Common Stock shall apply on like terms to any such other shares.

 

(x)           Voluntary Reduction in Conversion Rate. The Board of
Directors may make such reductions in the Conversion Rate, in addition to those
required by this Subsection (e), as shall be determined by the Board of
Directors to be advisable in order to avoid taxation insofar as practicable of
any dividend or distribution of stock or rights to acquire stock or any event
treated as such for Federal income tax purposes to the recipients. In addition,
the Board of Directors may from time to time reduce the Conversion Rate by any
amount for any period of at least 20 days if the reduction is irrevocable
during such period and the Board has determined in good faith that it is in the
best interest of the Corporation, and whenever the Conversion Rate is so
reduced, the Corporation shall mail to holders of record of Series B
Senior Convertible Preferred Stock, at least 15 days prior to the date such
reduction it is to take effect, a notice stating the reduced Conversion Rate
and the period it will be in effect.

 

(xi)          Authority of Board of Directors. The Board of
Directors shall have the power to resolve any ambiguity or correct any error in
this Subsection (e), and its action in so doing shall be final and conclusive.

 

10

 

(e)           Notice of Conversion
Rate Adjustments. Whenever the Conversion Rate is adjusted as herein
provided:

 

(i)            The
Corporation shall compute and file with each transfer agent for the shares of Series B
Senior Convertible Preferred Stock the adjusted Conversion Rate in accordance
with this Section 7 and shall prepare a certificate signed by the
Corporation’s treasurer setting forth the adjusted Conversion Rate and showing
in reasonable detail the facts upon which such adjustment is based; and

 

(ii)           A
notice stating that the Conversion Rate has been adjusted and setting forth the
adjusted Conversion Rate shall be mailed as soon as practicable to the holders
of record of outstanding shares of Series B Senior Convertible Preferred
Stock at their respective last addresses appearing on the books of the
Corporation.

 

(f)            Notice of Certain
Events. In case:

 

(i)            The
Corporation declares a dividend or other distribution on its Common Stock;

 

(ii)           The
Corporation authorizes the issuance to the holders of its Common Stock of
rights or warrants entitling them to subscribe for or purchase any shares of
capital stock of any class or any other subscription rights or warrants;

 

(iii)          Of
any reclassification of the capital stock of the Corporation (other than a
subdivision or combination of its outstanding shares of Common Stock), or of
any consolidation or merger to which the Corporation is a party and for which
approval of any stockholders of the Corporation is required, or of any sale,
transfer or other disposition of all or substantially all of the assets of the
Corporation or of any other transaction or event that would constitute or
result in a Fundamental Change; or

 

(iv)          Of
the voluntary or involuntary liquidation, dissolution or winding up of the
Corporation;

 

then the Corporation shall
file with each transfer agent for the shares of Series B Senior
Convertible Preferred Stock and mail to the holders of record of outstanding
shares of Series B Senior Convertible Preferred Stock, at their respective
last addresses appearing on the books of the Corporation, at least 20 days (or
10 days in any case specified in paragraph (i) or (ii) above) before
the applicable record or effective date hereinafter specified, a notice stating
(x) the date as of which the holders of record of Common Stock to be
entitled to such dividend, distribution, rights or warrants are to be
determined, or (y) the date on which such reclassification, consolidation,
merger, sale, transfer, disposition, liquidation, dissolution or winding up or
Fundamental Change is expected to become effective, and the date as of which it
is expected that holders of record of Common Stock shall be entitled to
exchange their shares for securities, cash or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer, disposition,
liquidation, dissolution or winding up or Fundamental 

 

11

 

Change. Failure to give
notice as required by this Subsection (g), or any defect in such notice, shall
not affect the validity of any such dividend, distribution, right, warrant,
reclassification, consolidation, merger, sale, transfer, disposition,
liquidation, dissolution or winding up or Fundamental Change, or the vote on
any action authorizing such.

 

(g)           Reservation of
Shares.

 

(i)            The Corporation shall at all times reserve
and keep available, free from preemptive rights, out of its authorized but
unissued Common Stock, solely for the purpose of issuance upon conversion of
shares of Series B Senior Convertible Preferred Stock, the full number of
shares of Common Stock then deliverable upon conversion of all shares of Series B
Senior Convertible Preferred Stock outstanding.

 

(ii)           In the event that at any
time the Corporation shall have outstanding any shares of capital stock, debt
securities, or other instruments or rights that are convertible into, or
exercisable or exchangeable for, shares of Series B Senior Convertible
Preferred Stock, the Corporation shall at such time reserve and keep available,
free from preemptive rights, out of its authorized but unissued Series B
Senior Convertible Preferred Stock, the full number of shares of Series B
Senior Convertible Preferred Stock then deliverable upon such conversion,
exercise or exchange.

 

(h)           Transfer Taxes on
Conversion. The Corporation shall pay any and all taxes that
may be payable in respect of the issuance or delivery of shares of Common Stock
on conversion of shares of Series B Senior Convertible Preferred Stock
pursuant hereto, other than any tax in respect of any transfer involved in the
issuance and delivery of shares of Common Stock in a name other than that in
which the shares of Series B Senior Convertible Preferred Stock so
converted were registered. No such issuance or delivery in a name other than
that in which the shares of Series B Senior Convertible Preferred Stock
were registered shall be made unless and until the person requesting such
issuance or delivery has paid to the Corporation the amount of any such tax or
has established to the satisfaction of the Corporation that such tax has been
paid.

 

(i)            Definition of
Common Stock. For purposes of this Section 7, “Common
Stock” includes any stock of any class or series of the Corporation which
has no preference or priority in the payment of dividends or in the
distribution of assets in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Corporation. However, shares
issuable upon conversion of shares of Series B Senior Convertible
Preferred Stock shall include only shares of the class designated as Common
Stock as of the first date of issuance of shares of Series B Senior
Convertible Preferred Stock or shares of the Corporation of any classes or
series resulting from any reclassification or reclassifications thereof and that
have no preference or priority in the payment of dividends or in the
distribution of assets in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Corporation, provided that
if at any time there shall be more than one such resulting class or series, the
shares of each such class and series then so issuable shall be substantially in
the proportion which the total number of shares of such class and series
resulting from all such 

 

12

 

reclassifications bears to
the total number of shares of all such classes and series resulting from all
such reclassifications.

 

(j)            Certificate of
Independent Accountants. The certificate of any independent firm of
public accountants of recognized standing selected by the Board of Directors
shall be presumptive evidence of the correctness of any computation made under
this Section 7.

 

(k)           Definitions of
Closing Price and Trading Day. As used in this Section 7,
“Closing Price” on any day means the reported last sale price per share
of Common Stock regular way on such day or, in case no such sale takes place on
such day, the average of the reported closing bid and asked prices regular way,
in each case on the New York Stock Exchange, or, if the Common Stock is not
listed or admitted to trading on such Exchange, on the American Stock Exchange,
or, if the Common Stock is not listed or admitted to trading on such Exchange,
on the principal national securities exchange on which the Common Stock is listed
or admitted to trading, or, if the Common Stock is not listed or admitted to
trading on any national securities exchange, the average of the closing bid and
asked prices in the over-the-counter market as reported by the National
Association of Securities Dealers’ Automated Quotation System (“NASDAQ”),
or, if not so reported, as reported by the National Quotation Bureau,
Incorporated, or its successor, or, if not so reported, the average of the
closing bid and asked prices as furnished by any member of the National
Association of Securities Dealers, Inc. selected from time to time by the
Corporation for that purpose. If on any such date the shares of Common Stock
are not listed or admitted for trading on any national securities exchange or
quoted by NASDAQ or a similar service, the Current Market Price for the Common
Stock shall be the fair market value of the Common Stock on such date as
determined in good faith by the Board of Directors of the Corporation. “Trading
Day” means a day on which the principal national securities exchange on
which the Common Stock is listed or admitted to trading is open for the
transaction of business or, if the Common Stock is not listed or admitted to
trading on any national securities exchange, a Monday, Tuesday, Wednesday,
Thursday or Friday on which banking institutions in New York, New York are not
authorized or obligated by law or executive order to close.

 

Section 8.              Voting
Rights.

 

(a)           General. The holders
of Series B Senior Convertible Preferred Stock shall be entitled to ten
votes for each share of Common Stock into which their shares of Series B
Senior Convertible Preferred Stock are convertible and, except as hereinafter
provided, shall vote together with the holders of Parity Stock and Common Stock
(and of any other class or series that may similarly be entitled to vote with
the holders of Common Stock) as a single class on all matters on which holders
of Common Stock are entitled to vote.

 

(b)           Other Voting Rights. So long as
any shares of Series B Senior Convertible Preferred Stock are outstanding,
in addition to any other vote or consent of stockholders required by law or by
the Certificate of Incorporation, the vote or consent of the holders of at
least a majority of the shares of Series B Senior Convertible Preferred
Stock at the 

 

13

 

time outstanding, voting
separately as a single class (subject to the proviso in this Section 8(b)),
given in person or by proxy, either in writing without a meeting or by vote at
any meeting called for the purpose, shall be necessary for effecting or
validating:

 

(i)            Amendment of Certificate of Incorporation. Any
amendment, alteration or repeal of any provision of the Certificate of
Incorporation, this Certificate of Designations or By-laws of the Corporation
(whether by merger, consolidation, reclassification, combination or otherwise),
or waive any provisions thereof, in a manner that would adversely affect the
rights, preferences, privileges or powers of the Series B Senior Convertible
Preferred Stock, including any amendment of the Certificate of Incorporation to
increase or decrease (but not below the number of shares thereof then
outstanding) the authorized number of shares of the Preferred Stock, or to
authorize or create, or increase the authorized amount of, any shares of any
class or series or any securities convertible into shares of any class or
series of capital stock of the Corporation ranking on parity with Series B
Senior Convertible Preferred Stock and all such other series in the payment of
dividends or in the distribution of assets on any liquidation, dissolution or
winding up of the Corporation; provided, however, that the
amendment of the Certificate of Incorporation so as to authorize or create, or
to increase the authorized amount of, any Junior Stock shall not be deemed to
affect adversely the powers, preferences or rights of the Series B Senior
Convertible Preferred Stock;

 

(ii)           Authorization of Senior Stock. Any amendment
or alteration of the Certificate of Incorporation (including without limitation
by merger, consolidation, reclassification, combination or otherwise) to
authorize or create, or increase the authorized amount of, or obligate itself
to authorize, issue or increase the amount of, any shares of any class or
series or any securities convertible into or exchangeable for shares of any
class or series of capital stock of the Corporation ranking prior to or on
parity with Series B Senior Convertible Preferred Stock with respect to
rights, privileges, liquidation preferences, dividends or distributions; or

 

(iii)         Certain Mergers and Consolidations. Any merger or
consolidation of the Corporation with or into any entity other than a
corporation, or any merger or consolidation of the Corporation with or into any
other corporation unless the surviving or resulting corporation, or a
corporation controlling such corporation that issues shares or other securities
in such merger or consolidation, will thereafter have no class or series of
shares or other securities either authorized or outstanding ranking prior to Series B
Senior Convertible Preferred Stock in the payment of dividends or in the
distribution of assets on any liquidation, dissolution or winding up, except
the same number of shares and the same amount of other securities with the same
voting powers, preferences and special rights as the shares and securities of
the Corporation respectively authorized and outstanding immediately before such
merger or consolidation, and each share of Series B Senior Convertible
Preferred Stock outstanding immediately before such merger or consolidation is
changed thereby into 

 

14

 

the same number of shares, with the same
voting powers, preferences and special rights, of such corporation;

 

provided, however,
that if any such amendment, alteration or repeal would affect adversely the
powers, preferences or rights of the Series B Senior Convertible Preferred
Stock and any other series of the Preferred Stock similarly entitled to vote
upon the matters specified herein in substantially the same manner, it shall be
sufficient if the holders of Series B Senior Convertible Preferred Stock
and all such other series so adversely affected vote thereon together as a
single class, regardless of series.

 

Section 9.              Certain
Covenants. So long as any shares of Series B Senior
Convertible Preferred Stock are outstanding, in addition to any other vote or
consent of stockholders required by law or by the Certificate of Incorporation,
the vote or consent of the holders of at least a majority of the aggregate
shares of Series B Senior Convertible Preferred Stock and Series A
Senior Convertible Preferred Stock at the time outstanding, voting together as
a single class on the basis of one vote for each share of Common Stock into
which shares of Series B Senior Convertible Preferred Stock and Series A
Senior Convertible Preferred Stock are convertible, given in person or by
proxy, either in writing without a meeting or by vote at any meeting called for
the purpose, shall be necessary for the Corporation to:

 

(a)           (i) dissolve,
liquidate or wind-up the Corporation or carry out any partial liquidation or
distribution or any transaction in the nature of a partial liquidation or
distribution, (ii) reclassify or recapitalize any shares of the
Corporation’s capital stock, (iii) directly or indirectly, redeem,
purchase, or otherwise acquire for value (including through an exchange), or
set apart money or other property for any redemption, purchase or acquisition
of, or other analogous fund for the redemption, purchase, acquisition of, any
Junior Stock or securities convertible into or exchangeable for Junior Stock,
other than (A) the redemption of shares of Common Stock, par value $0.01
per share, of the Corporation pursuant to Section 2.01(a) of the
Stockholders Agreement, and (B) the repurchase of Junior Stock or options
to purchase Junior Stock awarded pursuant to a compensatory plan or grant
approved by the Board of Directors of the Corporation, or (iv) file any voluntary
bankruptcy petitions or consent to the filing of any such bankruptcy petition
or consent to the appointment of any receiver, custodian, liquidator or trustee
for the Corporation or any material portion of its properties;

 

(b)           acquire,
whether by way of asset purchase, recapitalization, merger, consolidation,
purchase of stock or otherwise, a controlling interest in any other person or
entity, or all or any substantial part of the assets of any other person or
entity, or any operating division or business line of any other person or
entity, in each case outside the ordinary course of business, except to the
extent that the aggregate value of the consideration paid (including without
limitation indebtedness assumed) in connection therewith, together with the
aggregate value of the consideration paid (including without limitation
indebtedness assumed) in connection with any related transaction, is less than
$20,000,000; or

 

15

 

(c)           convey, sell,
lease, assign, transfer, exchange or otherwise dispose of any of its property,
business or assets, or permit the conveyance, sale, lease, assignment,
transfer, exchange or other disposition of any property, business or assets of
any consolidated subsidiary of the Corporation, whether now owned or hereafter
acquired, for an aggregate value of consideration paid (including without
limitation indebtedness assumed) in excess of $20,000,000 in any one
transaction or series of related transactions, except, for (i) the sale or
other disposition of any tangible or intangible personal property that has
become obsolete or worn out and is disposed of in the ordinary course of
business, (ii) the sale or other disposition of inventory made in the
ordinary course of business, (iii) capitalized leases and sale and
leaseback transactions, (iv) the license or sub-license of any
intellectual property, or (v) the sale of the Corporation which is
structured as a sale of all or substantially all of the assets of the
Corporation.

 

Section 10.            Other
Rights. The shares of Series B Senior Convertible Preferred Stock shall
not have any voting powers, preferences or relative, participating, optional or
other special rights, or qualifications, limitations or restrictions thereof,
other than as set forth herein or in the Certificate of Incorporation of the
Corporation.

 

Section 11.            Restatement
of Certificate. Upon any restatement of the Certificate of
Incorporation of the Corporation, Sections 1 through 10 of this certificate of
designations shall be included in Article 4 of the Amended and Restated
Certificate of Incorporation under the heading “Series B Senior
Convertible Preferred Stock” and this Section 11 may be omitted. If the
Board of Directors so determines, the numbering of Sections 1 through 10 may be
changed for convenience of reference or for any other proper purpose.”

 

16

 

IN WITNESS WHEREOF, Talecris
Biotherapeutics Holdings Corp. has caused this certificate to be signed by
Lawrence D. Stern, its Chairman and Chief Executive Officer, this 9th day of September, 2009.

 

	
   

  	
  TALECRIS
  BIOTHERAPEUTICS HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Lawrence D. Stern

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