Document:

Exhibit 10.7

 

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

2009 LONG-TERM INCENTIVE PLAN

 

	
   

  	
   

  	
   

  
	
   

  	
  Plan Document

  	
   

  
	
   

  	
   

  	
   

  

 

1.                                       Establishment, Purpose,
and Types of Awards

 

Talecris Biotherapeutics Holdings Corp. (the “Company”)
hereby establishes this equity-based incentive compensation plan to be known as
the “Talecris Biotherapeutics Holdings Corp. 2009 Long-Term Incentive Plan” (hereinafter referred to as the “Plan”), in order to provide
incentives and awards to select employees, directors, consultants, and advisors
of the Company and its Affiliates.  The
Plan permits, but does not require the granting of the following types of
awards (“Awards”), according to the
Sections of the Plan listed here:

 

	
   

  	
  Section 6

  	
   

  	
  Options

  
	
   

  	
  Section 7

  	
   

  	
  Share Appreciation
  Rights

  
	
   

  	
  Section 8

  	
   

  	
  Restricted Shares,
  Restricted Share Units, and Unrestricted Shares

  
	
   

  	
  Section 9

  	
   

  	
  Deferred Share Units

  
	
   

  	
  Section 10

  	
   

  	
  Performance Awards

  

 

The Plan is not intended to affect and shall not
affect any stock options, equity-based compensation, or other benefits that the
Company or its Affiliates may have provided, or may separately provide in the
future pursuant to any agreement, plan, or program that is independent of this
Plan.  Effective and contingent on the
Plan’s receipt of shareholder approval in accordance with Section 20, no
future awards will occur under any other Company plan including the Talecris
2006 Plan and the Talecris 2005 Plan.

 

2.                                       Defined Terms

 

Terms
in the Plan that begin with an initial capital letter have the defined meaning
set forth in Appendix A,
unless defined elsewhere in this Plan or the context of their use clearly
indicates a different meaning.

 

3.                                       Shares Subject to the
Plan

 

Subject to the provisions of Section 13 of the
Plan, the maximum number of Shares that the Company may issue for all Awards is
900,000  Shares (less the total number of
Shares, if any, that are subject to awards made pursuant to the Talecris 2006
Plan or the Talecris 2005 Plan between the date of Board approval of this Plan
and its effective date as determined under Section 20 below), on the
premises and provided that the Company shall not make additional awards under
the Talecris 2006 Plan, or the Talecris 2005 Plan.  For all Awards, the Shares issued pursuant to
the Plan may be authorized but unissued Shares, Shares that the Company has
reacquired or otherwise holds in treasury, or Shares held in a trust.

 

 

Shares
that are subject to an Award (or to any award under the Talecris 2006 Plan or
the Talecris 2005 Plan) that for any reason expires, is forfeited, is cancelled,
or becomes unexercisable, and Shares that are for any other reason not paid or
delivered under this Plan, or the Talecris 2006 Plan, or the Talecris 2005 Plan
shall again, except to the extent prohibited by Applicable Law, be available
for subsequent Awards under the Plan.  In
addition, the Committee may make future Awards with respect to Shares that the
Company retains from otherwise delivering pursuant to an Award under this Plan,
the Talecris 2006 Plan, or the Talecris 2005 Plan either (i) as payment of
the exercise price of an Award, or (ii) in order to satisfy the
withholding or employment taxes due upon grant, exercise, vesting or
distribution of an Award. 
Notwithstanding the foregoing, but subject to adjustments pursuant to Section 13
below, the number of Shares that are available for ISO Awards shall be
determined, to the extent required under applicable tax laws, by reducing the
number of Shares designated in the preceding paragraph by the number of Shares
granted pursuant to Awards (whether or not Shares are issued pursuant to such
Awards), provided that any Shares that are either issued or purchased under the
Plan and forfeited back to the Plan, or surrendered in payment of the Exercise
Price or minimum statutory employment taxes for an Award shall be available for
issuance pursuant to future ISO Awards.

 

4.                                       Administration

 

(a)                                  General.  The Committee
shall administer the Plan in accordance with its terms, provided that the Board
may act in lieu of the Committee on any matter. 
The Committee shall hold meetings at such times and places as it may
determine and shall make such rules and regulations for the conduct of its
business as it deems advisable.  In the
absence of a duly appointed Committee, the Board shall function as the
Committee for all purposes of the Plan.

 

(b)                                 Committee Composition. 
The Board
shall appoint the members of the Committee. If and to the extent permitted by
Applicable Law, the Committee may authorize one or more Reporting Persons (or
other officers) to make Awards to Eligible Persons who are not Reporting
Persons (or other officers whom the Committee has specifically authorized to
make Awards).  The Board may at any time
appoint additional members to the Committee, remove and replace members of the
Committee with or without Cause, and fill vacancies on the Committee however
caused.

 

(c)                                  Powers of the Committee. 
Subject to the provisions of the Plan, the Committee shall have the
authority, in its sole discretion:

 

(i)                                     to determine Eligible Persons to whom
Awards shall be granted from time to time and the number of Shares, units, or
dollars to be covered by each Award;

 

(ii)                                  to determine, from time to time, the Fair
Market Value of Shares;

 

(iii)                               to determine, and to set forth in Award
Agreements, the terms and conditions of all Awards, including any applicable
exercise or purchase price, the installments and conditions under which an
Award shall become vested (which may be based on performance), terminated,
expired, cancelled, or replaced, and the circumstances for vesting acceleration
or waiver of forfeiture restrictions, and other restrictions and limitations;

 

 

(iv)                              to approve the forms of Award Agreements
and all other documents, notices and certificates in connection therewith which
need not be identical either as to type of Award or among Participants;

 

(v)                                 to construe and interpret the terms of
the Plan and any Award Agreement, to determine the meaning of their terms, and
to prescribe, amend, and rescind rules and procedures relating to the Plan
and its administration; and

 

(vi)                              in order to fulfill the purposes of the
Plan and without amending the Plan, to modify, to cancel, or to waive the
Company’s rights with respect to any Awards, to adjust or to modify Award
Agreements for changes in Applicable Law, and to recognize differences in
foreign law, tax policies, or customs; and

 

(vii)                           to make all other interpretations and to
take all other actions that the Committee may consider necessary or advisable
to administer the Plan or to effectuate its purposes.

 

Subject
to Applicable Law and the restrictions set forth in the Plan, the Committee may
delegate administrative functions to individuals who are Reporting Persons,
officers, or Employees of the Company or its Affiliates.

 

(d)                                 Deference to Committee
Determinations.  The Committee shall have the discretion to
interpret or construe ambiguous, unclear, or implied (but omitted) terms in any
fashion it deems to be appropriate in its sole discretion, and to make any
findings of fact needed in the administration of the Plan or Award
Agreements.  The Committee’s prior
exercise of its discretionary authority shall not obligate it to exercise its
authority in a like fashion thereafter. 
The Committee’s interpretation and construction of any provision of the
Plan, or of any Award or Award Agreement, shall be final, binding, and
conclusive.  The validity of any such
interpretation, construction, decision or finding of fact shall not be given de
novo review if challenged in court, by arbitration, or in any other forum, and
shall be upheld unless clearly made in bad faith or materially affected by
fraud.

 

(e)                                  No Liability; Indemnification. 
Neither the Board nor any Committee member, nor any Person acting at the
direction of the Board or the Committee, shall be liable for any act, omission,
interpretation, construction or determination made in good faith with respect
to the Plan, any Award or any Award Agreement. 
The Company and its Affiliates shall pay or reimburse any member of the
Committee, as well as any Director, Employee, or Consultant who takes action on
behalf of the Plan, for all expenses incurred with respect to the Plan, and to
the full extent allowable under Applicable Law shall indemnify each and every
one of them for any claims, liabilities, and costs (including reasonable
attorney’s fees) arising out of their good faith performance of duties on
behalf of the Company with respect to the Plan. 
The Company and its Affiliates may, but shall not be required to, obtain
liability insurance for this purpose.

 

5.                                       Eligibility

 

(a)                                  General Rule. 
Subject to the express provisions of the Plan, the Committee shall
determine from the class of Eligible Persons those individuals to whom Awards
under the Plan may be granted, the number of Shares subject to each Award, the
price (if any) to be paid for the Shares or the Award and, in the case of
Performance Awards, in addition to the matters addressed in 

 

 

Section 10 below, the specific objectives, goals
and performance criteria that further define the Performance Award. The
Committee may grant ISOs only to Employees (including officers who are
Employees) of the Company or any Affiliate that is a “parent corporation” or “subsidiary
corporation” within the meaning of Section 424 of the Code, and may grant
all other Awards to any Eligible Person. 
A Participant who has been granted an Award may be granted an additional
Award or Awards if the Committee shall so determine, if such person is
otherwise an Eligible Person and if otherwise in accordance with the terms of
the Plan.

 

(b)                                 Documentation of Awards. 
Each Award shall be evidenced by an Award Agreement (which may take the
form of a notice from the Company) signed by the Company and, if required by
the Committee, by the Eligible Person. 
The Award Agreement shall set forth the material terms and conditions of
the Award established by the Committee, and each Award shall be subject to the
terms and conditions set forth in Sections 23, 24, and 25 unless otherwise
specifically provided in an Award Agreement.

 

(c)                                  Limits on Awards. 
During the term of the Plan, no Participant may receive Options and SARs
that relate to more than  300,000 Shares,
as adjusted pursuant to Section 13 below.

 

(d)                                 Replacement
Awards.  Subject to Applicable Laws
(including any associated Shareholder approval requirements), the Committee
may, in its sole discretion and upon such terms as it deems appropriate,
require as a condition of the grant of an Award to a Participant that the
Participant, with the Participant’s consent, surrender for cancellation some or
all of the Awards that have previously been granted to the Participant under
this Plan or otherwise.  A replacement
Award that is conditioned upon such surrender may or may not be the same type
of Award, may cover the same (or a lesser or greater) number of Shares as such
surrendered Award, may have other terms that are determined without regard to
the terms or conditions of such surrendered Award, and may contain any other
terms that the Committee deems appropriate. 
In the case of Options, these other terms may not involve an Exercise
Price that is lower than the exercise price of the surrendered Option unless
the Company’s shareholders approve the grant itself or the program under which
the grant is made pursuant to the Plan.

 

6.                                       Option Awards

 

(a)                                  Types;  Documentation.  Subject to Section 5(a), the Committee
may in its discretion grant Options pursuant to Award Agreements that are
delivered to Participants.  Each Option
shall be designated in the Award Agreement as an ISO or an NQSO, and the same
Award Agreement may grant both types of Options.  At the sole discretion of the Committee, any
Option may be exercisable, in whole or in part, immediately upon the grant
thereof, or only after the occurrence of a specified event, or only in
installments, which installments may vary. 
Options granted under the Plan may contain such terms and provisions not
inconsistent with the Plan that the Committee shall deem advisable in its sole
and absolute discretion.

 

(b)                                 ISO $100,000 Limitation.  To the extent that the aggregate Fair Market Value of
Shares with respect to which Options designated as ISOs first become
exercisable by a Participant in any calendar year (under this Plan and any
other plan of the Company or any Affiliate) exceeds $100,000, such excess
Options shall be treated as NQSOs.  For
purposes of determining whether the $100,000 limit is exceeded, the Fair Market
Value of the Shares subject to an ISO shall be determined as of the Grant
Date.  In reducing the number of Options
treated as ISOs to meet the 

 

 

$100,000 limit, the most recently granted Options
shall be reduced first.  In the event
that Section 422 of the Code is amended to alter the limitation set forth
therein, the limitation of this Section 6(b) shall be automatically
adjusted accordingly.

 

(c)                                  Term of Options. 
Each Award Agreement shall specify a term at the end of which the Option
automatically expires, subject to earlier termination provisions contained in Section 6(h) hereof;
provided, that, the term of any Option may not exceed ten years from the Grant
Date.  In the case of an ISO granted to
an Employee who is a Ten Percent Holder on the Grant Date, the term of the ISO
shall not exceed five years from the Grant Date.

 

(d)                                 Exercise Price. 
The exercise price of an Option shall not be less than 100% of the Fair
Market Value per Share on the Grant Date, provided that if an ISO is granted to
an Employee who on the Grant Date is a Ten Percent Holder, the per Share
exercise price shall not be less than 110% of the Fair Market Value per Share
on the Grant Date..  For any period
during which the Company is subject to the reporting requirements of the
Exchange Act, neither the Company nor the Committee shall, without shareholder
approval, allow for a repricing within the meaning of the federal securities
laws applicable to proxy statement disclosures.

 

(e)                                  Exercise of Option. 
Notwithstanding the terms of any Award Agreement to the contrary, the
Committee shall have the absolute discretion to impose a “blackout” period on
Option exercise with respect to any or all Participants to the extent that it
determines that doing so is desirable, and consistent with any applicable
Company insider trading policy.  The
Committee shall have the discretion to determine whether and to what extent the
vesting of Options shall be tolled during any unpaid leave of absence;
provided, however, that in the absence of such determination, vesting of
Options shall be tolled during any such leave approved by the Company.

 

(f)                                    Minimum Exercise
Requirements.  An Option may not be exercised for a fraction
of a Share.  The Committee may require in
an Award Agreement that an Option be exercised as to a minimum number of
Shares, provided that such requirement shall not prevent a Participant from
purchasing the full number of Shares as to which the Option is then
exercisable.

 

(g)                                 Methods of Exercise. 
Prior to
its expiration pursuant to the terms of the applicable Award Agreement, and
subject to the times, circumstances and conditions for exercise contained in
the applicable Award Agreement, each Option may be exercised, in whole or in
part (provided that the Company shall not be required to issue fractional
shares), by delivery of written notice of exercise to the secretary of the
Company accompanied by the full exercise price of the Shares being
purchased.  In the case of an ISO, the
Committee shall determine the acceptable methods of payment on the Grant Date
and it shall be included in the applicable Award Agreement.  The methods of payment that the Committee may
in its discretion accept or commit to accept in an Award Agreement include:

 

(i)                                     cash or check payable to the Company (in
U.S. dollars);

 

(ii)                                  other Shares that (A) are owned by
the Participant who is purchasing Shares pursuant to an Option, (B) have a
Fair Market Value on the date of surrender equal to the aggregate exercise
price of the Shares as to which the Option is being exercised, (C) are
all, at the time of such surrender, free and clear of any and all claims,
pledges, liens and encumbrances, or any restrictions which would in any manner
restrict the transfer of such 

 

 

shares to or by
the Company (other than such restrictions as may have existed prior to an
issuance of such Shares by the Company to such Participant), and (D) are
duly endorsed for transfer to the Company;

 

(iii)                               a net exercise by surrendering to the Company Shares otherwise receivable
upon exercise of the Option;

 

(iv)                              a cashless exercise program that the
Committee may approve, from time to time in its discretion, pursuant to which a
Participant may elect (I) to concurrently provide irrevocable instructions
(A) to such Participant’s broker or dealer to effect the immediate sale of
the purchased Shares and remit to the Company, out of the sale proceeds
available on the settlement date, sufficient funds to cover the exercise price
of the Option plus all applicable taxes required to be withheld by the Company
by reason of such exercise, and (B) to the Company to deliver the
certificates for the purchased Shares directly to such broker or dealer in
order to complete the sale; or (II) to provide written notice to the
Committee, to exercise any vested portion of the Option by receiving the number
of shares equal to (x) the excess of aggregate Fair Market Value of the
Shares for which the Option is being exercised on the date of exercise by the
Participant over the aggregate exercise price for such Shares, (y) divided
by the per share Fair Market Value of the Shares on the date of exercise by the
Participant; or

 

(v)                                 any combination of the foregoing methods
of payment.

 

The
Company shall not be required to deliver Shares pursuant to the exercise of an
Option until payment of the full exercise price therefor is received by the
Company and the Company has received sufficient funds to cover all applicable
taxes required to be withheld by the Company by reason of such exercise.

 

(h)                                 Termination of Continuous Service.  The Committee
may establish and set forth in the applicable Award Agreement the terms and
conditions on which an Option shall remain exercisable, if at all, following
termination of a Participant’s Continuous Service.  The Committee may waive or modify these
provisions at any time.  To the extent
that a Participant is not entitled to exercise an Option at the date of his or
her termination of Continuous Service, or if the Participant (or other person
entitled to exercise the Option) does not exercise the Option to the extent so
entitled within the time specified in the Award Agreement or below (as
applicable), the Option shall terminate and the Shares underlying the unexercised
portion of the Option shall revert to the Plan and become available for future
Awards.  In no event may any Option be
exercised after the expiration of the Option term as set forth in the Award
Agreement.

 

The
following provisions shall apply to the extent an Award Agreement does not
specify the terms and conditions upon which an Option shall terminate when
there is a termination of a Participant’s Continuous Service:

 

(i)                                     Termination
other than Upon Disability or Death or for Cause.  In the event
of termination of a Participant’s Continuous Service (other than as a result of
Participant’s death, disability, retirement or termination for Cause), the
Participant shall have the right to exercise an Option at any time within 90
days following such termination to the extent the Participant was entitled to
exercise such Option at the date of such termination.

 

 

(ii)                                  Disability. 
In the event of termination of a Participant’s Continuous Service as a
result of his or her being Disabled, the Participant shall have the right to
exercise an Option at any time within one year following such termination to
the extent the Participant was entitled to exercise such Option at the date of
such termination.

 

(iii)                               Retirement.  In the event
of termination of a Participant’s Continuous Service as a result of the
Participant’s Retirement, the Participant shall have the right to exercise the
Option at any time within eighteen (18) months following such termination to
the extent the Participant was entitled to exercise such Option at the date of
such termination (provided that an ISO exercised more than three months after
termination of the Participant’s Continuous Service shall to that extent be
treated as a NQSO).

 

(iv)                              Death.  In the event
of the death of a Participant during the period of Continuous Service since the
Grant Date of an Option, or within thirty days following termination of the
Participant’s Continuous Service, the Option may be exercised, at any time
within eighteen (18) months following the date of the Participant’s death, by
the Participant’s estate or by a person who acquired the right to exercise the
Option by bequest or inheritance, but only to the extent the right to exercise
the Option had vested at the date of death or, if earlier, the date the Participant’s
Continuous Service terminated.

 

(v)                                 Cause. 
If the Committee determines that a Participant’s Continuous Service
terminated due to Cause, the Participant shall immediately forfeit the right to
exercise any Option, and it shall be considered immediately null and void.

 

If there is a Securities and Exchange Commission
blackout period (or a Committee-imposed blackout period under Section 6(e))
that prohibits the buying or selling of Shares during any part of the ten (10) day
period before the expiration of any Option based on the termination of a
Participant’s Continuous Service (as described above), the period for
exercising the Options shall be extended until ten (10) days beyond when
such blackout period ends. 
Notwithstanding any provision hereof or within an Award Agreement, no
Option shall ever be exercisable after the expiration date of its original term
as set forth in the Award Agreement.

 

(i)                                     Reverse Vesting. 
The Committee in its sole discretion may allow a Participant to exercise
unvested NQSOs, in which case the Shares then issued shall be Restricted Shares
having analogous vesting restrictions to the unvested NQSOs.

 

(j)                                     Buyout. 
The Committee may at any time offer to buy out an Option, in exchange
for a payment in cash or Shares, based on such terms and conditions as the
Committee shall establish and communicate to the Participant at the time that
such offer is made.  In addition, but
subject to any shareholder approval requirement of Applicable Law, if the Fair
Market Value for Shares subject to an Option is more than 33% below their
exercise price for more than 30 consecutive business days, the Committee may
unilaterally terminate and cancel the Option either (i) by paying the
Participant, in cash or Share, an amount not less than the Black-Scholes value
of the vested portion of the Option, (ii) by irrevocably committing to
grant, on any date the Committee designates, a new Award other than an Option
or SAR, or (iii) by irrevocably committing to grant a new Option, on a
designated date more than six months after such termination and cancellation of
such Option (but only if the Participant’s Continuous Service has not
terminated prior to such designated date), on substantially the same terms as
the cancelled Option, provided that the per Share exercise price for 

 

 

the new Option shall equal the per Share Fair Market
Value of a Share on the date the new grant occurs.

 

7.                                       Share Appreciation
Rights (SARs)

 

(a)                                  Grants. 
The Committee may in its discretion grant Share Appreciation Rights to any
Eligible Person in any forms described below. 
At the sole discretion of the Committee, any SAR may be exercisable, in
whole or in part, immediately on the grant thereof, or only after the
occurrence of a specified event, or only in installments, which installments
may vary.  SARS granted under the Plan
may contain such terms and provisions not inconsistent with the Plan that the
Committee shall deem advisable in its sole and absolute discretion.

 

(i)                                     SARs related to Options. 
The Committee may grant SARs either concurrently with the grant of an
Option or with respect to an outstanding Option, in which case the SAR shall
extend to all or a portion of the Shares covered by the related Option.  An SAR shall entitle the Participant who
holds the related Option, upon exercise of the SAR and surrender of the related
Option, or portion thereof, to the extent the SAR and related Option each were
previously unexercised, to receive payment of an amount determined pursuant to Section 7(e) below.  Any SAR granted in connection with an ISO
will contain such terms as may be required to comply with the provisions of Section 422
of the Code and the regulations promulgated thereunder.

 

(ii)                                  SARs Independent of Options. 
The Committee may grant SARs which are independent of any Option subject
to such conditions as the Committee may in its discretion determine and set
forth in the applicable Award Agreement.

 

(iii)                               Limited SARs.  The Committee may grant SARs exercisable only upon or in
respect of a Change in Control or any other specified event, and such limited
SARs may relate to or operate in tandem or combination with or substitution for
Options or other SARs, or on a stand-alone basis, and may be payable in cash or
Shares based on the spread between the exercise price of the SAR, and (A) a
price based upon or equal to the Fair Market Value of the Shares during a
specified period, at a specified time within a specified period before, after
or including the date of such event, or (B) a price related to
consideration payable to Company’s shareholders generally in connection with
the event.

 

(b)                                 Exercise Price. 
The per Share exercise price of an SAR shall be determined in the sole
discretion of the Committee, shall be set forth in the applicable Award
Agreement, and shall be no less than 100% of the Fair Market Value of one Share
on the Grant Date.  The exercise price of
an SAR related to an Option shall be the same as the exercise price of the
related Option.  Neither the Company nor
the Committee shall, without shareholder approval, allow for a repricing within
the meaning of the federal securities laws applicable to proxy statement
disclosures.

 

(c)                                  Exercise of SARs. 
An SAR may not have a term exceeding ten years from its Grant Date.  Unless the Award Agreement otherwise provides,
an SAR related to an Option will be exercisable at such time or times, and to
the extent, that the related Option will be exercisable; provided that the
Award Agreement shall not, without the approval of the shareholders of the
Company, provide for a vesting period for the exercise of the SAR that is more
favorable to the Participant than the exercise period for the related
Option.  An SAR granted independently of
any 

 

 

other Award will be exercisable pursuant to the terms
of the Award Agreement.  Whether an SAR
is related to an Option or is granted independently, the SAR may only be
exercised when the Fair Market Value of the Shares underlying the SAR exceeds
the exercise price of the SAR.

 

(d)                                 Effect on Available Shares.  Notwithstanding Section 3 above, all SARs
that may be settled in Shares shall be counted in full against the number of
Shares available for awards under the Plan (subject to a net counting rule to
the extent allowed by Applicable Law and approved by the Committee in its
discretion), regardless of the number of Shares actually issued upon settlement
of the SARs.

 

(e)                                  Payment.  Upon exercise of an SAR related to an Option and the
attendant surrender of an exercisable portion of any related Award, the
Participant will be entitled to receive payment of an amount determined by
multiplying —

 

(i)                                     the excess of the Fair Market Value of a
Share on the date of exercise of the SAR over the exercise price per Share of
the SAR, by

 

(ii)                                  the number of Shares with respect to
which the SAR has been exercised.

 

(iii)                               Notwithstanding the foregoing, an SAR
granted independently of an Option (i) may limit the amount payable to the
Participant to a percentage, specified in the Award Agreement but not exceeding
one-hundred percent (100%), of the amount determined pursuant to the preceding
sentence, and (ii) shall be subject to any payment or other restrictions
that the Committee may at any time impose in its discretion, including
restrictions intended to conform the SARs with Section 409A of the Code.

 

(f)                                    Form and Terms of Payment.  Unless
otherwise provided in an Award Agreement, all SARs shall be settled in Shares
as soon as practicable after exercise. 
Subject to Applicable Law, the Committee may, in its sole discretion,
provide in an Award Agreement that the amount determined under Section 7(e) above
shall be settled solely in cash, solely in Shares (valued at their Fair Market
Value on the date of exercise of the SAR), or partly in cash and partly in
Shares, with cash paid in lieu of fractional shares.

 

(g)                                 Termination of Employment or
Consulting Relationship.  The Committee shall establish and set forth
in the applicable Award Agreement the terms and conditions under which an SAR
shall remain exercisable, if at all, following termination of a Participant’s
Continuous Service.  The provisions of Section 6(h) above
shall apply to the extent an Award Agreement does not specify the terms and
conditions upon which an SAR shall terminate when there is a termination of a
Participant’s Continuous Service.

 

8.                                       Restricted Shares,
Restricted Share Units, and Unrestricted Shares

 

(a)                                  Grants. 
The Committee may in its sole discretion grant restricted shares (“Restricted
Shares”) to any Eligible Person and shall evidence such grant in an Award
Agreement that is delivered to the Participant and that sets forth the number
of Restricted Shares, the purchase price for such Restricted Shares (if any),
and the terms upon which the Restricted Shares may become vested.  In addition, the Company may in its
discretion grant to any Eligible Person the right to receive Shares after
certain vesting requirements are met (“Restricted Share Units”), and shall 

 

 

evidence such grant in an Award Agreement that is
delivered to the Participant which sets forth the number of Shares (or formula,
that may be based on future performance or conditions, for determining the
number of Shares) that the Participant shall be entitled to receive upon
vesting and the terms upon which the Shares subject to a Restricted Share Unit
may become vested.  The Committee may
condition any Award of Restricted Shares or Restricted Share Units to a
Participant on receiving from the Participant such further assurances and
documents as the Committee may require to enforce the restrictions.  In addition, the Committee may grant Awards
hereunder in the form of unrestricted shares (“Unrestricted Shares”), shares
with no conditions conveying immediate ownership to the holder, which shall
vest in full upon the date of grant or such other date as the Committee may
determine or which the Committee may issue pursuant to any program under which
one or more Eligible Persons (selected by the Committee in its sole discretion)
elect to pay for such Shares or to receive Unrestricted Shares in lieu of cash
bonuses that would otherwise be paid.

 

(b)                                 Vesting and Forfeiture. 
The Committee shall set forth in an Award Agreement granting Restricted
Shares or Restricted Share Units, the terms and conditions under which the
Participant’s interest in the Restricted Shares or the Shares subject to
Restricted Share Units will become vested and non-forfeitable.  Except as set forth in the applicable Award
Agreement or the Committee otherwise determines, upon termination of a
Participant’s Continuous Service for any other reason, the Participant shall
forfeit his or her Restricted Shares and Restricted Share Units; provided that
if a Participant purchases the Restricted Shares and forfeits them for any
reason, the Company shall return the purchase price to the Participant only if
and to the extent set forth in an Award Agreement.

 

(c)                                  Issuance of Restricted Shares
Prior to Vesting.  The Company shall issue stock certificates
that evidence Restricted Shares pending the lapse of applicable restrictions,
and that bear a legend making appropriate reference to such restrictions.  Except as set forth in the applicable Award
Agreement or as the Committee otherwise determines, the Company or a third
party that the Company designates shall hold such Restricted Shares and any
dividends that accrue with respect to Restricted Shares pursuant to Section 8(e) below.

 

(d)                                 Issuance of Shares upon
Vesting.  As soon as practicable after vesting of a Participant’s
Restricted Shares (or right to receive Shares underlying Restricted Share
Units) and the Participant’s satisfaction of applicable tax withholding
requirements, the Company shall release to the Participant, free from the
vesting restrictions, one Share for each vested Restricted Share (or issue one
Share free of the vesting restriction for each vested Restricted Share Unit),
unless an Award Agreement provides otherwise. 
No fractional shares shall be distributed, and cash shall be paid in
lieu thereof.

 

(e)                                  Dividends Payable on Vesting.  Unless otherwise provided in an
Award Agreement, whenever Shares are released to a Participant or
duly-authorized transferee pursuant to Section 8(d) above as a result
of the vesting of Restricted Shares or the Shares underlying Restricted Share
Units are issued to a Participant pursuant to Section 8(d) above,
such Participant or duly authorized transferee shall also be entitled to
receive (unless otherwise provided in the Award Agreement), with respect to
each Share released or issued a number of Shares equal to the sum of (i) any
stock dividends, which were declared and paid to the holders of Shares between
the Grant Date and the date such Share is released from the vesting
restrictions in the case of Restricted Shares or issued in the case of
Restricted Share Units, and (ii) a number of Shares equal to the Shares
that the Participant could have purchased at Fair Market Value on the payment
date of any cash dividends 

 

 

for Shares if the Participant had received such cash
dividends with respect to each Restricted Share or Share subject to a
Restricted Share Unit Award between its Grant Date and its settlement date.

 

(f)                                    Deferral Elections. 
At any time within the thirty-day period (or other shorter or longer
period, that the Committee selects in its sole discretion) beginning when a
Participant who is a member of a select group of management or highly
compensated employees (within the meaning of ERISA) receives an initial Award
of Restricted Share Units that has a vesting condition tied to the Participant’s
Continued Service and that does not involve the exercise of Options or SARs,
the Award Agreement may permit the Participant to irrevocably elect, on a form
provided by and acceptable to the Committee, to defer the receipt of all or a
percentage of the Shares that would otherwise be transferred to the Participant
upon the vesting of such Award, provided the election is made at least 12
months in advance of the earliest date that the Restricted Share Units may
vest.  If the Participant makes this
election, the Shares subject to the election, and any associated dividends and
interest, shall be credited to an account established pursuant to Section 9
hereof on the date such Shares would otherwise have been released or issued to
the Participant pursuant to Section 8(d) above, and no vesting shall
occur (other than for death or Disability if provided pursuant to the Award
Agreement) within the 12-month period following the date of the Participant’s
election.

 

9.                                       Deferred Share Units

 

(a)                                  Elections to Defer.  The Committee may permit any Eligible Person who is a
Director, Consultant or member of a select group of management or highly
compensated employees (within the meaning of the ERISA) to irrevocably elect,
on a form provided by and acceptable to the Committee (the “Election Form”), to
forego the receipt of cash or other compensation, and in lieu thereof to have
the Company credit to an internal Plan account (the “Account”) a number of
deferred share units (“Deferred Share Units”) having a Fair Market Value equal
to the Shares and other compensation deferred. 
In general, subject to Section 8(f) regarding deferral of
Restricted Shares and Restricted Share Units and to Section 10(e) regarding
deferral of Performance Awards, Election Forms must be submitted to the
Committee no later than December 31st of the calendar year preceding the
calendar year in which the Eligible Person first performs the services that are
attributable to the compensation being deferred.  Notwithstanding the foregoing, any Eligible
Person who first becomes eligible to defer compensation under the Plan and is
not eligible to defer or otherwise accrue an amount of deferred compensation
under any other plan or arrangement that (i) is maintained by the Company
or any other Affiliate that would be considered a single employer with the
Company pursuant to Code Sections 414(b) or 414(c) and (ii) constitutes
a single plan under Treasury Regulation §1.409A-1(c)(2)(A), may submit his or
her Election Form to the Committee no later than 30 days after the date
the Eligible Person first becomes eligible to defer compensation under the
Plan; however, the Election Form may relate only to compensation that is
to be paid for services performed after the date the Election Form is
submitted to the Committee.  The
Committee may reject any Election Form that it determines in its sole
discretion does not satisfy the requirements of this paragraph. The Committee
may unilaterally make Awards in the form of Deferred Share Units, regardless of
whether or not the Participant foregoes other compensation.

 

(b)                                 Vesting. 
Unless an Award Agreement expressly provides otherwise, each Participant
shall be 100% vested at all times in any Shares subject to Deferred Share
Units.

 

 

(c)                                  Issuances of Shares. 
The Company shall provide a Participant with one Share for each Deferred
Share Unit in five substantially equal annual installments that are issued
before the last day of each of the five calendar years that end after the date
on which the Participant incurs a “separation from service” within the meaning
of Treasury Regulations §1.409A-1(h) (“Separation from Service”), unless
—

 

(i)                                     the Participant has properly elected a
different form of distribution, on a form approved by the Committee, that
permits the Participant to select any combination of a lump sum and annual
installments that are triggered by and completed within ten years following the
Participant’s Separation from Service, and

 

(ii)                                  the Company received the Participant’s
distribution election form at the time the Participant elects to defer the
receipt of cash or other compensation pursuant to Section 9(a), provided
that such election may be changed through any subsequent election that (i) is
delivered to the Company at least one year before the date on which
distributions are otherwise scheduled to commence pursuant to the Participant’s
election, and (ii) defers the commencement of distributions by at least
five years from the originally scheduled commencement date.

 

Fractional
shares shall not be issued, and instead shall be paid out in cash.

 

(d)                                 Crediting of Dividends. 
Unless otherwise provided in an Award Agreement, whenever Shares are
issued to a Participant pursuant to Section 9(c) above, such
Participant shall also be entitled to receive, with respect to each Share
issued, a number of Shares equal to the sum of (i) any stock dividends,
which were declared and paid to the holders of Shares between the Grant Date
and the date such Share is issued, and (ii) a number of Shares equal to
the Shares that the Participant could have purchased at Fair Market Value on
the payment date of any cash dividends if the Participant had received such
cash dividends between the Grant Date and the date such Share is issued.

 

(e)                                  Emergency Withdrawals.  In the event a Participant suffers an unforeseeable
emergency within the contemplation of this Section and Section 409A
of the Code, the Participant may apply to the Company for an immediate
distribution of all or a portion of the Participant’s Deferred Share
Units.  The unforeseeable emergency must
result from a sudden and unexpected illness or accident of the Participant, the
Participant’s spouse, or a dependent (within the meaning of Section 152(a) of
the Code) of the Participant, casualty loss of the Participant’s property, or
other similar extraordinary and unforeseeable conditions beyond the control of
the Participant.  Examples of purposes
which are not considered unforeseeable emergencies include post-secondary
school expenses or the desire to purchase a residence.  In no event will a distribution be made to
the extent the unforeseeable emergency could be relieved through reimbursement
or compensation by insurance or otherwise, or by liquidation of the Participant’s
nonessential assets to the extent such liquidation would not itself cause a
severe financial hardship.  The amount of
any distribution hereunder shall be limited to the amount necessary to relieve
the Participant’s unforeseeable emergency plus amounts necessary to pay taxes
reasonably anticipated as a result of the distribution.  The Committee shall, in its sole and absolute
discretion, determine whether a Participant has a qualifying unforeseeable
emergency and the amount which qualifies for distribution, if any.  The Committee may require evidence of the
purpose and amount of the need, and may establish such application or other
procedures as it deems appropriate.

 

 

(f)                                    Unsecured Rights to Deferred
Compensation.  A Participant’s right to Deferred Share
Units shall at all times constitute an unsecured promise of the Company to pay
benefits as they come due.  The right of
the Participant or the Participant’s duly-authorized transferee to receive
benefits hereunder shall be solely an unsecured claim against the general
assets of the Company.  Neither the
Participant nor the Participant’s duly-authorized transferee shall have any
claim against or rights in any specific assets, shares, or other funds of the
Company.

 

10.                                 Performance Awards

 

(a)                                  Performance Units. 
Subject to the limitations set forth in paragraph (c) hereof, the
Committee may in its discretion grant Performance Units to any Eligible Person
and shall evidence such grant in an Award Agreement that is delivered to the
Participant which sets forth the terms and conditions of the Award.

 

(b)                                 Performance
Compensation Awards.  Subject to the limitations set forth in
paragraph (c) hereof, the Committee may, at the time of grant of a
Performance Unit, designate such Award as a “Performance Compensation Award”
(payable in cash or Shares) in order that such Award constitutes “qualified
performance-based compensation” under Code Section 162(m), in which event
the Committee shall have the power to grant such Performance Compensation Award
upon terms and conditions that qualify it as “qualified performance-based
compensation” within the meaning of Code Section 162(m).  With respect to each such Performance
Compensation Award, the Committee shall establish, in writing within the time
required under Code Section 162(m), a “Performance Period,” “Performance
Measure(s)”, and “Performance Formula(e)” (each such term being hereinafter
defined).  Once established for a
Performance Period, the Performance Measure(s) and Performance Formula(e) shall
not be amended or otherwise modified to the extent such amendment or
modification would cause the compensation payable pursuant to the Award to fail
to constitute qualified performance-based compensation under Code Section 162(m).

 

A
Participant shall be eligible to receive payment in respect of a Performance
Compensation Award only to the extent that the Performance Measure(s) for
such Award is achieved and the Performance Formula(e) as applied against
such Performance Measure(s) determines that all or some portion of such
Participant’s Award has been earned for the Performance Period.  As soon as practicable after the close of
each Performance Period, the Committee shall review and certify in writing
whether, and to what extent, the Performance Measure(s) for the
Performance Period have been achieved and, if so, determine and certify in
writing the amount of the Performance Compensation Award to be paid to the
Participant and, in so doing, may use negative discretion to decrease, but not
increase, the amount of the Award otherwise payable to the Participant based
upon such performance.

 

(c)                                  Limitations on
Awards.  The maximum Performance Unit Award and the maximum
Performance Compensation Award that any one Participant may receive for any one
Performance Period shall not together exceed 300,000 Shares, as adjusted
pursuant to Section 13 below (or, for Performance Units to be settled in
cash, the equivalent Fair Market Value of those Shares).  The Committee shall have the discretion to
provide in any Award Agreement that any amounts earned in excess of these
limitations will either be credited as Deferred Share Units, or as deferred
cash compensation under a separate plan of the Company (provided in the latter
case that such deferred compensation either bears a reasonable rate of interest
or has a value based on one or more predetermined actual investments).  Any amounts for which payment to the
Participant is deferred 

 

 

pursuant to the preceding sentence shall be paid to
the Participant in a future year or years not earlier than, and only to the
extent that, the Participant is either not receiving compensation in excess of
these limits for a Performance Period, or is not subject to the restrictions
set forth under Section 162(b) of the Code.

 

(d)                                 Definitions.

 

(i)                                     “Performance Formula” means, for a
Performance Period, one or more objective formulas or standards established by
the Committee for purposes of determining whether or the extent to which an
Award has been earned based on the level of performance attained or to be
attained with respect to one or more Performance Measure(s).  Performance Formulae may vary from
Performance Period to Performance Period and from Participant to Participant and
may be established on a stand-alone basis, in tandem or in the alternative.

 

(ii)                                  “Performance Measure” means one or more
of the following selected by the Committee to measure Company, Affiliate,
and/or business unit performance for a Performance Period, whether in absolute
or relative terms (including, without limitation, terms relative to a peer
group or index): basic, diluted, or adjusted earnings per share; sales or
revenue; earnings before interest, taxes, and other adjustments (in total or on
a per share basis); basic or adjusted net income; returns on equity, assets,
capital, revenue or similar measure; free cash flow; unlevered free cash flow;
debt repayment; economic value added; working capital; total shareholder
return; and product development, product market share, research, licensing,
litigation, human resources, information services, mergers, acquisitions, sales
of assets of Affiliates or business units. 
Each such measure shall be, to the extent applicable, determined in
accordance with generally accepted accounting principles as consistently
applied by the Company (or such other standard applied by the Committee) and,
if so determined by the Committee, and in the case of a Performance
Compensation Award, to the extent permitted under Code Section 162(m),
adjusted to omit the effects of extraordinary items, gain or loss on the
disposal of a business segment, unusual or infrequently occurring events and
transactions and cumulative effects of changes in accounting principles.  Performance Measures may vary from
Performance Period to Performance Period and from Participant to Participant,
and may be established on a stand-alone basis, in tandem or in the alternative.

 

(iii)                               “Performance Period” means one or more
periods of time (of not less than one fiscal year of the Company), as the
Committee may designate, over which the attainment of one or more Performance
Measure(s) will be measured for the purpose of determining a Participant’s
rights in respect of an Award.

 

(e)                                  Deferral Elections. At any time prior to the date that is
at least six months before the close of a Performance Period (or shorter or
longer period that the Committee selects) with respect to an Award of either
Performance Units or Performance Compensation, the Committee may permit a
Participant who is a member of a select group of management or highly
compensated employees (within the meaning of ERISA) to irrevocably elect, on a
form provided by and acceptable to the Committee, to defer the receipt of all
or a percentage of the cash or Shares that would otherwise be transferred to
the Participant upon the vesting of such Award. 
If the Participant makes this election, the cash or Shares subject to
the election, and any associated interest and 

 

 

dividends, shall be credited to an account established
pursuant to Section 9 hereof on the date such cash or Shares would
otherwise have been released or issued to the Participant pursuant to Section 10(a) or
Section 10(b) above.

 

11.                                 Taxes

 

(a)                                  General. As a condition to the issuance or distribution
of Shares pursuant to the Plan, the Participant (or in the case of the
Participant’s death, the person who succeeds to the Participant’s rights) shall
make such arrangements as the Company may require for the satisfaction of any
applicable federal, state, local or foreign withholding tax obligations that
may arise in connection with the Award and the issuance of Shares.  The Company shall not be required to issue
any Shares until such obligations are satisfied, and may unilaterally withhold
Shares for this purpose.  If the
Committee allows or effectuates the withholding or surrender of Shares to
satisfy a Participant’s tax withholding obligations, the Committee shall not
allow Shares to be withheld in an amount that exceeds the minimum statutory withholding
rates for federal and state tax purposes, including payroll taxes.

 

(b)                                 Default Rule for Employees. In the absence of any other arrangement
authorized by the Committee or set forth in the Award Agreement, and to the
extent permitted under Applicable Law, each Participant shall be deemed to have
elected to have the Company withhold from the Shares or cash to be issued
pursuant to an Award that number of Shares having a Fair Market Value
determined as of the applicable Tax Date (as defined below) or cash equal to
the minimum applicable tax withholding and employment tax obligations
associated with an Award.  If such
withholding of Shares is not permitted for any reason, the Company shall
satisfy any required withholding through withholding from cash compensation
otherwise payable to the Participant. 
For purposes of this Section 11, the Fair Market Value of the
Shares to be withheld shall be determined on the date that the amount of tax to
be withheld is to be determined under the Applicable Law (the “Tax Date”).

 

(c)                                  Surrender of Shares. If permitted by the Committee, in its
discretion, a Participant may satisfy the minimum applicable tax withholding
and employment tax obligations associated with an Award by surrendering Shares
to the Company (including Shares that would otherwise be issued pursuant to the
Award) that have a Fair Market Value determined as of the applicable Tax Date
equal to the amount required to be withheld. 
In the case of Shares previously acquired from the Company that are
surrendered under this Section 11, such Shares must have been owned by the
Participant for more than six months on the date of surrender (or such longer
period of time the Company may in its discretion require).

 

(d)                                 Income Taxes and Deferred Compensation.  Participants are solely responsible and
liable for the satisfaction of all taxes and penalties that may arise in
connection with Awards (including any taxes arising under Section 409A of
the Code), and the Company shall not have any obligation to indemnify or otherwise
hold any Participant harmless from any or all of such taxes.  The Committee shall have the discretion to
organize any deferral program, to require deferral election forms, and to grant
or to unilaterally modify any Award in a manner that (i) conforms with the
requirements of Section 409A of the Code with respect to compensation that
is deferred and/or that vests after December 31, 2004, (ii) that
voids any Participant election to the extent it would violate Section 409A
of the Code, and (iii) for any distribution election that would violate Section 409A
of the Code, to make distributions pursuant to the Award at the earliest to
occur of a distribution event 

 

 

that is allowable under Section 409A of the
Code or any distribution event that is both allowable under Section 409A
of the Code and is elected by the Participant, subject to any valid second
election to defer, provided that the Committee permits second elections to
defer in accordance with Section 409A(a)(4)(C).  The Committee shall have the sole discretion
to interpret the requirements of the Code, including Section 409A, for
purposes of the Plan and all Awards.

 

12.                                 Non-Transferability of
Awards

 

(a)                                  General. 
Except as set forth in this Section 12, or as otherwise approved by
the Committee, Awards may not be sold, pledged, assigned, hypothecated,
transferred or disposed of in any manner other than by will or by the laws of
descent or distribution.  The designation
of a beneficiary by a Participant will not constitute a transfer.  An Award may be exercised, during the
lifetime of the holder of an Award, only by such holder, the duly-authorized
legal representative of a Participant who is Disabled, or a transferee
permitted by this Section 12.

 

(b)                                 Limited Transferability Rights. 
Notwithstanding
anything else in this Section 12, the Committee may in its discretion
provide in an Award Agreement that an Award in the form of an NQSO,
Share-settled SAR, Restricted Shares, or Performance Shares may be transferred,
on such terms and conditions as the Committee deems appropriate, either (i) by
instrument to the Participant’s “Immediate Family” (as defined below), (ii) by
instrument to an inter vivos or testamentary trust (or other entity) in which
the Award is to be passed to the Participant’s designated beneficiaries, or (iii) by
gift to charitable institutions.  Any
transferee of the Participant’s rights shall succeed and be subject to all of
the terms of the applicable Award Agreement and the Plan. “Immediate Family”
means any child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall
include adoptive relationships.

 

13.                                 Adjustments Upon Changes
in Capitalization, Merger or Certain Other Transactions

 

(a)                                  Changes in Capitalization. 
The Committee shall equitably adjust the number of Shares covered by
each outstanding Award, and the number of Shares that have been authorized for
issuance under the Plan but as to which no Awards have yet been granted or that
have been returned to the Plan upon cancellation, forfeiture, or expiration of
an Award, as well as the price per Share covered by each such outstanding
Award, to reflect any increase or decrease in the number of issued Shares
resulting from a stock-split, reverse stock-split, stock dividend, combination,
recapitalization or reclassification of the Shares, merger, consolidation,
change in form of organization, or any other increase or decrease in the number
of issued Shares effected without receipt of consideration by the Company.  In the event of any such transaction or
event, the Committee may provide in substitution for any or all outstanding
Awards under the Plan such alternative consideration (including securities of
any surviving entity) as it may in good faith determine to be equitable under
the circumstances and may require in connection therewith the surrender of all
Awards so replaced.  In any case, such
substitution of securities shall not require the consent of any person who is
granted Awards pursuant to the Plan. 
Except as expressly provided herein, or in an Award Agreement, if the
Company issues for consideration shares of stock of any class or securities
convertible into shares of stock of any class, the issuance shall not affect,
and no adjustment by reason thereof shall be required to be made with respect
to the number or price of Shares subject to any Award.

 

 

(b)                                 Dissolution or Liquidation. 
In the event of the dissolution or liquidation of the Company other than
as part of a Change of Control, each Award will terminate immediately prior to
the consummation of such action, subject to the ability of the Committee to
exercise any discretion authorized in the case of a Change in Control.

 

(c)                                  Change in Control. 
In the event of a Change in Control, the Committee may in its sole and
absolute discretion and authority, without obtaining the approval or consent of
the Company’s shareholders or any Participant with respect to his or her outstanding
Awards, take one or more of the following actions:

 

(i)                                     arrange for or otherwise provide that
each outstanding Award shall be assumed or a substantially similar award shall
be substituted by a successor corporation or a parent or subsidiary of such
successor corporation (the “Successor Corporation”);

 

(ii)                                  accelerate the vesting of Awards so that
Awards shall vest (and, to the extent applicable, become exercisable) as to the
Shares that otherwise would have been unvested and provide that repurchase rights
of the Company with respect to Shares issued upon exercise of an Award shall
lapse as to the Shares subject to such repurchase right;

 

(iii)                               arrange or otherwise provide for the
payment of cash or other consideration to Participants in exchange for the
satisfaction and cancellation of outstanding Awards;

 

(iv)                              terminate upon the consummation of the
transaction, provided that the Committee may in its sole discretion provide for
vesting of all or some outstanding Awards in full as of a date immediately
prior to consummation of the Change in Control. 
To the extent that an Award is not exercised prior to consummation of a
transaction in which the Award is not being assumed or substituted, such Award
shall terminate upon such consummation; or

 

(v)                                 make such other modifications,
adjustments or amendments to outstanding Awards or this Plan as the Committee
deems necessary or appropriate, subject however to the terms of Section 15(a) below.

 

Notwithstanding the above, unless otherwise provided
in an Award Agreement, in the event a Participant holding an Award assumed or
substituted by the Successor Corporation in a Change in Control is
Involuntarily Terminated by the Successor Corporation in connection with, or
within 12 months  (or other period either set forth
in an Award Agreement, or as increased thereafter by the Committee to a period
longer than 12 months) following consummation of, the Change in Control, then
any assumed or substituted Award held by the terminated Participant at the time
of termination shall accelerate and become fully vested (and exercisable in
full in the case of Options and SARs), and any repurchase right applicable to
any Shares shall lapse in full, unless an Award Agreement provides for a more
restrictive acceleration or vesting schedule or more restrictive limitations on
the lapse of repurchase rights or otherwise places additional restrictions,
limitations and conditions on an Award. 
The acceleration of vesting and lapse of repurchase rights provided for
in the previous

 

 

sentence
shall occur immediately prior to the effective date of the Participant’s
termination, unless an Award Agreement provides otherwise.

 

(d)                                 Certain Distributions. 
In the event of any distribution to the Company’s shareholders of
securities of any other entity or other assets (other than dividends payable in
cash or stock of the Company) without receipt of consideration by the Company,
the Committee may, in its discretion, appropriately adjust the price per Share
covered by each outstanding Award to reflect the effect of such distribution.

 

14.                                 Time of Granting Awards.

 

The
date of grant (“Grant Date”) of an Award shall be the date on which the
Committee makes the determination granting such Award or such other date as is
determined by the Committee, provided that in the case of an ISO, the Grant
Date shall be the later of the date on which the Committee makes the
determination granting such ISO or the date of commencement of the Participant’s
employment relationship with the Company.

 

15.                                 Modification of Awards
and Substitution of Options.

 

(a)                                  Modification, Extension, and
Renewal of Awards.  Within the limitations of the Plan, the
Committee may modify an Award to accelerate the rate at which an Option or SAR
may be exercised (including without limitation permitting an Option or SAR to
be exercised in full without regard to the installment or vesting provisions of
the applicable Award Agreement or whether the Option or SAR is at the time
exercisable, to the extent it has not previously been exercised), to accelerate
the vesting of any Award, to extend or renew outstanding Awards or to accept
the cancellation of outstanding Awards to the extent not previously
exercised.  However, the Committee may
not cancel an outstanding Option whose exercise price is greater than Fair
Market Value at the time of cancellation for the purpose of reissuing the
Option to the Participant at a lower exercise price or granting a replacement
award of a different type.  Notwithstanding
the foregoing provision, no modification of an outstanding Award shall
materially and
adversely affect such Participant’s rights thereunder, unless either (i) the
Participant provides written consent, or (ii) before a Change in Control,
the Committee determines in good faith that the modification is not materially
adverse to the Participant.  Furthermore,
neither the Company nor the Committee shall, without shareholder approval,
allow for a “repricing” within the meaning of federal securities laws
applicable to proxy statement disclosures.

 

(b)                                 Substitution of
Options.  Notwithstanding any inconsistent
provisions or limits under the Plan, in the event the Company or an Affiliate
acquires (whether by purchase, merger or otherwise) all or substantially all of
outstanding capital stock or assets of another corporation or in the event of
any reorganization or other transaction qualifying under Section 424 of
the Code, the Committee may, in accordance with the provisions of that Section,
substitute Options for options under the plan of the acquired company provided (i) the
excess of the aggregate fair market value of the shares subject to an option
immediately after the substitution over the aggregate option price of such
shares is not more than the similar excess immediately before such substitution
and (ii) the new option does not give persons additional benefits,
including any extension of the exercise period.

 

 

16.                                 Term of Plan.

 

The
Plan shall continue in effect for a term of ten (10) years from its
effective date as determined under Section 20 below, unless the Plan is
sooner terminated under Section 17 below.

 

17.                                 Amendment and
Termination of the Plan.

 

(a)                                  Authority to Amend or Terminate. 
Subject to Applicable Laws, the Board may from time to time amend,
alter, suspend, discontinue, or terminate the Plan.

 

(b)                                 Effect of Amendment or
Termination.  No amendment, suspension, or termination
of the Plan shall materially and adversely affect Awards already granted unless
either it relates to an adjustment pursuant to Section 13 or modification
pursuant to Section 15(a) above, or it is otherwise mutually agreed
between the Participant and the Committee, which agreement must be in writing
and signed by the Participant and the Company. 
Notwithstanding the foregoing, the Committee may amend the Plan to
comply with changes in tax or securities laws or regulations, or in the
interpretation thereof.

 

(c)                                  Special Code Section 409A.  Notwithstanding
the foregoing provisions of this Section 17, with respect to any Award
that constitutes a “nonqualified deferred compensation plan” within the meaning
of Code Section 409A, termination of this Plan shall not result in an
acceleration or deferral of income taxation except to the extent permissible
within Code Section 409A’s rules and regulations relating to plan
terminations.

 

18.                                 Conditions Upon Issuance
of Shares.

 

Notwithstanding
any other provision of the Plan or any agreement entered into by the Company
pursuant to the Plan, the Company shall not be obligated, and shall have no
liability for failure, to issue or deliver any Shares under the Plan unless
such issuance or delivery would comply with Applicable Law, with such
compliance determined by the Company in consultation with its legal counsel.

 

19.                                 Reservation of Shares.

 

The
Company, during the term of this Plan, will at all times reserve and keep
available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan.

 

20.                                 Effective Date.

 

This Plan shall become
effective on the later of (i) the closing date of the Company’s initial
public offering of its Shares, and (ii) the date on which the Plan has
received approval by a vote of a majority of the votes cast at a duly held
meeting of the Company’s shareholders (or by such other shareholder vote that
the Committee determines to be sufficient for the issuance of Shares or stock
options according to the Company’s governing documents and applicable state
law).

 

21.                                 Controlling Law.

 

All
disputes relating to or arising from the Plan shall be governed by the internal
substantive laws (and not the laws of conflicts of laws) of the State of
Delaware, to the extent not preempted by United States federal law.  If any provision of this Plan is held by a
court of competent jurisdiction to be invalid and unenforceable, the remaining
provisions shall continue to be fully effective.

 

 

22.                                 Laws and Regulations.

 

(a)                                  U.S. Securities Laws.  This Plan, the grant of Awards, and the exercise of
Options and SARs under this Plan, and the obligation of the Company to sell or
deliver any of its securities (including, without limitation, Options,
Restricted Shares, Restricted Share Units, Unrestricted Shares, Deferred Share
Units, and Shares) under this Plan shall be subject to all Applicable Law.  In the event that the Shares are not registered
under the Securities Act of 1933, as amended (the “Securities Act”), or any
applicable state securities laws prior to the delivery of such Shares, the
Company may require, as a condition to the issuance thereof, that the persons
to whom Shares are to be issued represent and warrant in writing to the Company
that such Shares are being acquired by him or her for investment for his or her
own account and not with a view to, for resale in connection with, or with an
intent of participating directly or indirectly in, any distribution of such Shares
within the meaning of the Securities Act, and a legend to that effect may be
placed on the certificates representing the Shares.

 

(b)                                 Other Jurisdictions. 
To facilitate the making of any grant of an Award under this Plan, the
Committee may provide for such special terms for Awards to Participants who are
foreign nationals or who are employed by the Company or any Affiliate outside
of the United States of America as the Committee may consider necessary or
appropriate to accommodate differences in local law, tax policy or custom.  The Company may adopt rules and
procedures relating to the operation and administration of this Plan to
accommodate the specific requirements of local laws and procedures of
particular countries.  Without limiting
the foregoing, the Company is specifically authorized to adopt rules and
procedures regarding the conversion of local currency, taxes, withholding
procedures and handling of stock certificates which vary with the customs and
requirements of particular countries. 
The Company may adopt sub-plans and establish escrow accounts and trusts
as may be appropriate or applicable to particular locations and countries.

 

23.                                 No Shareholder Rights. 
Neither a Participant nor any transferee of a Participant shall have any
rights as a shareholder of the Company with respect to any Shares underlying
any Award until the date of issuance of a share certificate to a Participant or
a transferee of a Participant for such Shares in accordance with the Company’s
governing instruments and Applicable Law. 
Prior to the issuance of Shares pursuant to an Award, a Participant
shall not have the right to vote or to receive dividends or any other rights as
a shareholder with respect to the Shares underlying the Award, notwithstanding
its exercise in the case of Options and SARs. 
No adjustment will be made for a dividend or other right that is
determined based on a record date prior to the date the stock certificate is
issued, except as otherwise specifically provided for in this Plan.

 

24.                                 No
Employment Rights.  The Plan shall not confer upon any
Participant any right to continue an employment, service or consulting
relationship with the Company, nor shall it affect in any way a Participant’s
right or the Company’s right to terminate the Participant’s employment,
service, or consulting relationship at any time, with or without Cause.  By accepting any Award under
this Plan a Participant confirms his or her at-will status (except as otherwise
provided in a written employment or consulting agreement signed by an officer
of the Company or an authorized designee of an officer of the Company) and that
such relationship only can be changed by a written agreement signed by an
officer of the Company or an authorized designee of an officer of the Company.

 

 

25.                                 Termination, Rescission
and Recapture of Awards.

 

(a)                                  Each Award under the Plan is intended to
align the Participant’s long-term interest with those of the Company.  If the Participant engages in certain
activities discussed below, either during employment or after employment with
the Company terminates for any reason, the Participant is acting contrary to
the long-term interests of the Company. 
Accordingly, but only to the extent expressly provided in an Award Agreement,
the Company may terminate any outstanding, unexercised, unexpired, unpaid, or
deferred Awards (“Termination”), rescind any exercise, payment or delivery
pursuant to the Award (“Rescission”), or recapture any Common Stock (whether
restricted or unrestricted) or proceeds from the Participant’s sale of Shares
issued pursuant to the Award (“Recapture”), if the Participant does not comply
with the conditions of subsections (b), (c) and (e) hereof
(collectively, the “Conditions”).

 

(b)                                 A Participant shall not, without the
Company’s prior written authorization, disclose to anyone outside the Company,
or use in other than the Company’s business, any proprietary or confidential
information or material, as those or other similar terms are used in any
applicable patent, confidentiality, inventions, secrecy, or other agreement
between the Participant and the Company with regard to any such proprietary or
confidential information or material.

 

(c)                                  Pursuant to any agreement between the
Participant and the Company with regard to intellectual property (including but
not limited to patents, trademarks, copyrights, trade secrets, inventions,
developments, improvements, proprietary information, confidential business and
personnel information), a Participant shall promptly disclose and assign to the
Company or its designee all
right, title, and interest in such intellectual property, and shall take all
reasonable steps necessary to enable the Company to secure all right, title and
interest in such intellectual property in the United States and in any foreign country.

 

(d)                                 Upon exercise, payment, or delivery of
cash or Common Stock pursuant to an Award, the Participant shall certify on a
form acceptable to the Company that he or she is in compliance with the terms
and conditions of the Plan and, if a severance of Continuous Service has
occurred for any reason, shall state the name and address of the Participant’s
then-current employer or any entity for which the Participant performs business
services and the Participant’s title, and shall identify any organization or
business in which the Participant owns a greater-than-five-percent equity
interest.

 

(e)                                  If the Company determines, in its sole
and absolute discretion, that (i) a Participant has violated any of the
Conditions or (ii) during his or her Continuous Service, or within  one (1) year after its termination for any reason, a
Participant (a) has rendered services to or otherwise directly or
indirectly engaged in or assisted, any organization or business that, in the
judgment of the Company in its sole and absolute discretion, is or is working
to become competitive with the Company; (b) has solicited any
non-administrative employee of the Company to terminate employment with the
Company; or (c) has engaged in activities which are materially prejudicial
to or in conflict with the interests of the Company, including any breaches of
fiduciary duty or the duty of loyalty, then the Company may, in its sole and
absolute discretion, impose a Termination, Rescission, and/or Recapture with
respect to any or all of the Participant’s relevant Awards, Shares, and the
proceeds thereof.

 

 

(f)                                    Within ten days after receiving notice
from the Company of any such
activity described in Section 25(e) above, the Participant shall
deliver to the Company the
Shares acquired pursuant to the Award, or, if Participant has sold the Shares,
the gain realized, or payment received as a result of the rescinded exercise,
payment, or delivery; provided, that if the Participant returns Shares that the
Participant purchased pursuant to the exercise of an Option (or the gains
realized from the sale of such Common Stock), the Company shall promptly refund the exercise price, without
earnings, that the Participant paid for the Shares.  Any payment by the Participant to the Company pursuant to this Section 21
shall be made either in cash or by returning to the Company the number of Shares that the Participant received in
connection with the rescinded exercise, payment, or delivery.  It shall not be a basis for Termination,
Rescission or Recapture if after termination of a Participant’s Continuous
Service, the Participant purchases, as an investment or otherwise, stock or
other securities of such an organization or business, so long as (i) such
stock or other securities are listed upon a recognized securities exchange or
traded over-the-counter, and (ii) such investment does not represent more
than a five percent (5%) equity interest in the organization or business.

 

(g)                                 Notwithstanding the foregoing provisions
of this Section, the Company has sole and absolute discretion not to require
Termination, Rescission and/or Recapture, and its determination not to require
Termination, Rescission and/or Recapture with respect to any particular act by
a particular Participant or Award shall not in any way reduce or eliminate the
Company’s authority to require Termination, Rescission and/or Recapture with
respect to any other act or Participant or Award.  Nothing in this Section shall be
construed to impose obligations on the Participant to refrain from engaging in
lawful competition with the Company after the termination of employment that
does not violate subsections (b) or (c) of this Section, other than
any obligations that are part of any separate agreement between the Company and
the Participant or that arise under Applicable Law.

 

(h)                                 All administrative and discretionary
authority given to the Company under this Section shall be exercised by
the most senior human resources executive of the Company or such other person
or committee (including without limitation the Committee) as the Committee may
designate from time to time.

 

(i)                                     Notwithstanding any provision of this
Section, if any provision of this Section is determined to be
unenforceable or invalid under any Applicable Law, such provision will be
applied to the maximum extent permitted by Applicable Law, and shall
automatically be deemed amended in a manner consistent with its objectives to
the extent necessary to conform to any limitations required under Applicable
Law.  Furthermore, if any provision of
this Section is illegal under any Applicable Law, such provision shall be
null and void to the extent necessary to comply with Applicable Law.

 

Notwithstanding the foregoing, but subject to any
contrary terms set forth in any Award Agreement, this Section shall not be
applicable:  (i) to any Participant
who is not, on the Award Date, an Employee of the Company or its Affiliates;
and (ii) to any Participant from and after his or her termination of
Continuous Service after a Change in Control.

 

26.                                 Recoupment of Awards. 
Unless otherwise specifically provided in an Award Agreement, and to the
extent permitted by Applicable Law, the Committee may in its sole and absolute
discretion, without obtaining the approval or consent of the Company’s
shareholders or any 

 

 

Participant with
respect to his or her outstanding Awards, require that each Participant agrees
to reimburse the Company for all or any portion of any Awards granted under
this Plan (“Reimbursement”), or the Committee may require the Termination or
Rescission of, or the Recapture associated with, any Award, if—

 

(a)                                  the granting, vesting, or payment of such
Award (or portion thereof) was predicated upon the achievement of certain
financial results or other performance criteria;

 

(b)                                 in the Committee’s view the Participant
either benefited from a calculation that later proves to be materially
inaccurate, or engaged in one or more material acts of fraud or misconduct that
caused or partially caused the need for a financial restatement by the Company
or any material Affiliate; and

 

(c)                                  a lower granting, vesting, or payment of
such Award would have occurred based upon the conduct described in clause (b) of
this Section.

 

In
each instance, the Committee will, to the extent practicable and allowable
under Applicable Laws, require Reimbursement, Termination or Rescission of, or
Recapture relating to, any such Award granted to a Participant, including
reimbursement for any gains realized on the exercise of Options or SARs
attributable to such Awards, plus a reasonable rate of interest, effecting the
cancellation of Restricted Shares, Restricted Share Units, Unrestricted Shares,
Deferred Share Units, Performance Awards, and outstanding Options and SARs;
provided that the Company will not seek Reimbursement, Termination or
Rescission of, or Recapture relating to, any such Awards that were paid or
vested more than three years prior to the date the applicable restatement is
disclosed.

 

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

2006 LONG-TERM INCENTIVE PLAN

 

	
   

  	
   

  	
   

  
	
   

  	
  Appendix
  A: Definitions

  	
   

  
	
   

  	
   

  	
   

  

 

As used in the Plan, the following definitions shall apply:

 

“Affiliate” means, with respect to any Person (as
defined below), any other Person that directly or indirectly controls or is
controlled by or under common control with such Person.  For the purposes of this definition, “control,”
when used with respect to any Person, means the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of
such Person or the power to elect directors, whether through the ownership of
voting securities, by contract or otherwise; and the terms “affiliated,” “controlling”
and “controlled” have meanings correlative to the foregoing.

 

 

“Applicable
Law” means
the legal requirements relating to the administration of options and
share-based plans under applicable U.S. federal and state laws, the Code, any
applicable stock exchange or automated quotation system rules or
regulations (to the extent the Committee determines in its discretion that
compliance with such rules or regulations is desirable) and the applicable
laws of any other country or jurisdiction where Awards are granted, or that
apply to the Company’s or a Participant’s rights and obligations under this
Plan or any Award Agreement, as such laws, rules, regulations and requirements
shall be in place from time to time.

 

“Award” means any award made pursuant to the
Plan, including awards made in the form of an Option, an SAR, a Restricted
Share, a Restricted Share Unit, an Unrestricted Share, a Deferred Share Unit,
and a Performance Award, or any combination thereof, whether alternative or
cumulative, authorized by and granted under this Plan.

 

“Award
Agreement”
means any written document setting forth the terms of an Award that has been
authorized by the Committee. The Committee shall determine the form or forms of
documents to be used, and may change them from time to time for any reason.

 

“Board” means the Board of Directors of the
Company.

 

“Cause”
means: (i) Participant’s
failure to perform the duties and responsibilities of his or her position in a
manner satisfactory to the Company, except that Cause does not include failure
resulting from Participant’s incapacity due to mental or physical illness or
injury or from any permitted leave required by law, (ii)  Participant’s
failure to comply with Participant’s employment agreement or with the Company’s
written employment policies, (iii) Participant’s conviction of, or
entering of a plea of guilty or nolo contendere
to, a felony, (iv) Participant’s willful misconduct that results in harm
to the Company financially, reputationally or otherwise, (v) Participant’s
repeated failure to follow the lawful instructions of his direct or indirect
supervisors, and/or (vi) Participant’s disqualification or bar by any
governmental or self-regulatory authority from serving in the capacity he or
she is employed with the Company or Participant’s loss of any governmental or
self-regulatory license that is reasonably necessary for Participant to perform
his or her responsibilities to the Company. 
Notwithstanding the foregoing, if a Participant is a party to a written
employment agreement with the Company or an Affiliate and such employment
agreement has a definition of “cause” that differs from the definition above,
then the definition of Cause for purposes of this Plan as it applies to such
Participant shall be deemed to be the definition of “cause” as set forth in the
Participant’s employment agreement.

 

The Committee
shall in its discretion determine whether or not a Participant is being
terminated for Cause.  The Committee’s
determination shall, unless arbitrary and capricious, be final and binding on
the Participant, the Company, and all other affected persons.  The foregoing definition does not in any way
limit the Company’s ability to terminate a Participant’s employment or
consulting relationship at any time, and the term “Company” will be interpreted
herein to include any Affiliate or successor thereto, if
appropriate.

 

“Change in Control” means the occurrence of any one of the following
events:

 

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

 

 

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

 

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

 

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

 

b.                                      no Person, other than a Permitted
Investor or any employee benefit plan (or related trust) sponsored or
maintained by the Surviving Corporation or the Parent Corporation, is or
becomes the beneficial owner, directly or indirectly, of securities of the
Parent Corporation (or, if there is no Parent Corporation, the Surviving
Corporation) representing (A) 30% of the total voting power of the
securities then outstanding generally eligible to vote for the election of
directors of the Parent Corporation (or the Surviving Corporation) (the “Parent
Voting Securities”), and (B) a greater percentage of the then
outstanding Parent Voting Securities that are then held by all the Permitted
Investors in the aggregate, and

 

c.                                       at least a majority of the members of the
board of directors of the Parent Corporation (or, if there is no Parent
Corporation, the Surviving Corporation) following the consummation of the
Business Combination were Incumbent Directors at the time of the Board’s 

 

 

approval of the
execution of the initial agreement providing for such Business Combination;

 

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

 

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

 

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

 

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

 

“Code” means the U.S. Internal Revenue Code of 1986,
as amended.

 

“Committee” means one or more
committees or subcommittees of the Board appointed by the Board to administer
the Plan in accordance with Section 4 above.  With respect to any decision involving an
Award intended to satisfy the requirements of Section 162(m) of the
Code, the Committee shall consist of two or more Directors of the Company who
are “outside directors” within the meaning of Section 162(m) of the
Code.  With respect to any decision
relating to a Reporting Person, the Committee shall consist solely of two or
more Directors who are disinterested within the meaning of Rule 16b-3.

 

“Common
Stock” or “Share” means a share of common stock of the Company, as
adjusted in accordance with Section 13 of the Plan.

 

“Company” means Talecris Biotherapeutics Holdings
Corp.; provided, however, that in the event the Company reincorporates to
another jurisdiction, all references to the term “Company” shall refer to the
Company in such new jurisdiction.

 

“Consultant” means any person, including
an advisor, who is engaged by the Company or any Affiliate to render services
and is compensated
for such services.

 

“Continuous
Service”
means the absence of any interruption or termination of service as an Employee,
Director, or Consultant.  Continuous
Service shall not be considered interrupted in the case of:  (i) sick leave; (ii) military
leave; (iii) any other leave of absence approved by the Committee,
provided that such leave is for a period of not more than 90 days, unless
reemployment upon the expiration of such leave is guaranteed by contract or
statute, or unless provided otherwise pursuant to Company policy adopted from
time to time; (iv) changes in status from Director to advisory director or
emeritus status; or (iv) in the case of transfers between locations of the

 

 

Company or between the Company, its Affiliates or
their respective successors.  Changes in
status between service as an Employee, Director, and a Consultant will not
constitute an interruption of Continuous Service if the Committee determines
that the individual has not continued or will not continue to perform bona fide
services for the Company or determines that the relationship will or may result
in adverse accounting consequences.

 

“Deferred
Share Units”
mean Awards pursuant to Section 9 of the Plan.

 

“Director”
means a member of
the Board, or a member of the board of directors of an Affiliate.

 

“Disabled”
or “Disability” means a condition under which a
Participant  —

 

(a)                                  is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, or

 

(b)                                 is, by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months, received income replacement benefits for a period of not less than 3
months under an accident or health plan covering employees of the Company.

 

“Eligible Person” means any Consultant, Director or Employee and
includes non-Employees to whom an offer of employment has been or is being
extended.

 

“Employee” means any person whom the Company or any
Affiliate classifies as an employee (including an officer) for employment tax
purposes, whether or not that classification is correct.  The payment by the Company of a director’s
fee to a Director shall not be sufficient to constitute “employment” of such
Director by the Company.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended.

 

“Fair
Market Value”
means, as of any date (the “Determination Date”) means: (i) the closing
price of a Share on the New York Stock Exchange or the American Stock Exchange
(collectively, the “Exchange”), on the Determination Date, or, if shares were
not traded on the Determination Date, then on the nearest preceding trading day
during which a sale occurred; or (ii) if such stock is not traded on the
Exchange but is quoted on NASDAQ or a successor quotation system, (A) the
last sales price (if the stock is then listed as a National Market Issue under
The NASDAQ National Market System) or (B) the mean between the closing
representative bid and asked prices (in all other cases) for the stock on the
Determination Date as reported by NASDAQ or such successor quotation system; or
(iii) if such stock is not traded on the Exchange or quoted on NASDAQ but
is otherwise traded in the over-the-counter, the mean between the
representative bid and asked prices on the Determination Date; or (iv) if
subsections (i)-(iii) do not apply, the fair market value established in
good faith by the Board.

 

“Grant
Date” has the
meaning set forth in Section 14 of the Plan.

 

 

“Incentive
Stock Option or ISO” hereinafter means an Option intended to qualify as an incentive stock
option within the meaning of Section 422 of the Code, as designated in the
applicable Award Agreement.

 

“Involuntary
Termination” means
termination of a Participant’s Continuous Service under the following
circumstances occurring on or after a Change in Control:  (i) termination without Cause by the
Company or an Affiliate or successor thereto, as appropriate; or (ii) voluntary
termination by the Participant within 60 days following (A) a material
reduction in the Participant’s job responsibilities, provided that neither a
mere change in title alone nor reassignment to a substantially similar position
shall constitute a material reduction in job responsibilities; (B) an
involuntary relocation of the Participant’s work site to a facility or location
more than 50 miles from the Participant’s principal work site at the time of
the Change in Control; or (C) a material reduction in Participant’s total
compensation other than as part of an reduction by the same percentage amount
in the compensation of all other similarly-situated Employees, Directors or
Consultants.

 

“NQSO” means an Option not intended to qualify
as an ISO, as designated in the applicable Award Agreement.

 

“Option” means any stock option granted pursuant
to Section 6 of the Plan.

 

“Participant” means any holder of one or more Awards,
or the Shares issuable or issued upon exercise of such Awards, under the Plan.

 

“Performance Awards” mean Performance
Units and Performance Compensation Awards granted pursuant to Section 10.

 

“Performance Compensation Awards” mean Awards
granted pursuant to Section 10(b) of the Plan.

 

“Performance Unit” means Awards granted pursuant to Section 10(a) of
the Plan which may be paid in cash, in Shares, or such combination of cash and
Shares as the Committee in its sole discretion shall determine.

 

“Permitted
Investor” means
Parent, Cerberus-Plasma Holdings LLC and Ampersand Ventures or any of their
respective affiliates or other affiliates of Cerberus Capital Management, L.P.

 

“Person” means any natural person, association,
trust, business trust, cooperative, corporation, general partnership, joint
venture, joint-stock company, limited partnership, limited liability company,
real estate investment trust, regulatory body, governmental agency or
instrumentality, unincorporated organization or organizational entity.

 

“Plan” means this Talecris Biotherapeutics
Holdings Corp. 2009 Long-Term Incentive Plan.

 

“Reporting
Person” means
an officer, Director, or greater than ten percent shareholder of the Company
within the meaning of Rule 16a-2 under the Exchange Act, who is required
to file reports pursuant to Rule 16a-3 under the Exchange Act.

 

“Restricted
Shares” mean
Shares subject to restrictions imposed pursuant to Section 8 of the Plan.

 

 

“Restricted
Share Units”
mean Awards pursuant to Section 8 of the Plan.

 

“Retirement” means termination of a Participant’s Continuous
Service at a time when the Participant’s age is greater than 65 years.

 

“Rule 16b-3” means Rule 16b-3 promulgated under
the Exchange Act, as amended from time to time, or any successor provision.

 

“SAR” or “Share Appreciation Right” means Awards granted pursuant to Section 7
of the Plan.

 

“Share”
or “Common Stock” means a share of common stock of the
Company, as adjusted in accordance with Section 13 of the Plan.

 

“Talecris
2006 Plan”
means the Talecris Biotherapeutics Holdings Corp. 2006 Restricted Stock Plan.

 

“Talecris
2005 Plan”
means the Talecris Biotherapeutics Holdings Corp. 2005 Stock Option and
Incentive Plan.

 

“Ten Percent Holder” means a person who owns stock
representing more than ten percent (10%) of the combined voting power of all
classes of stock of the Company or any Affiliate.

 

“Unrestricted
Shares” mean
Shares awarded pursuant to Section 8 of the Plan.

 

 

Board of Directors

August 7,
2009

 

 

TALECRIS BIOTHERAPEUTICS
HOLDINGS CORP.

2009 LONG-TERM INCENTIVE PLAN

 

 

	
   

  	
  As approved by the

  
	
   

  	
  Board of Directors on

  
	
   

  	
  August 7, 2009Exhibit 10.15.2

 

FIRST AMENDMENT TO

STOCKHOLDERS AGREEMENT

 

This FIRST AMENDMENT TO THE STOCKHOLDERS AGREEMENT, dated as of August17,
2009 (this “Amendment”), is made and entered into by and among TALECRIS
BIOTHERAPEUTICS HOLDINGS CORP., a Delaware corporation (the “Company”),
and TALECRIS HOLDINGS, LLC, a Delaware limited liability company (“Talecris
LLC”).

 

WHEREAS, the Company, Talecris LLC and Bayer Healthcare LLC, a Delaware
limited liability company (“Bayer”) and certain of its Affiliates
entered into that certain Stockholders Agreement, dated as of March 31,
2005 (the “Talecris LLC Stockholders Agreement”);

 

WHEREAS, the Company, Talecris LLC and Bayer entered into that certain
letter agreement, dated September 15, 2006 (the “Bayer Repurchase
Agreement”), pursuant to which Bayer sold all of its remaining equity
interest in the Company to the Company and ceased to have any further rights,
obligations or interests in or under the Talecris LLC Stockholders Agreement;

 

WHEREAS, the Company, Talecris LLC and the individual stockholders
signatory thereto (the “Employee Holders”) entered into that certain
Stockholders Agreement, dated as of December 7, 2006 (the “Employee
Stockholders Agreement”);

 

WHEREAS, Section 8.02 of the Talecris LLC Stockholders Agreement
permits amendment of the Talecris LLC Stockholders Agreement pursuant to a
written instrument signed by all of the parties to the Talecris LLC
Stockholders Agreement that makes specific reference to the Talecris LLC
Stockholders Agreement;

 

WHEREAS, the Company and Talecris LLC desire to amend the Talecris LLC
Stockholders Agreement as provided herein;

 

NOW, THEREFORE, in consideration of the foregoing and the agreements
specified in this Amendment and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, and intending to be
legally bound, the Company and Talecris LLC hereby agree as follows:

 

1.             Amendment
of Section 4.01(a) of the Talecris LLC Stockholders Agreement.  Section 4.01(a) of the Talecris LLC
Stockholders Agreement is hereby deleted in its entirety and replaced with the
following:

 

(a)           Commencing
six months following the consummation of an IPO, but not within 180 days after
the consummation of any Public Offering, Talecris LLC shall have an unlimited
number of rights to require the Company to file a Registration Statement under
the Securities Act, covering all or any part of its Registrable Securities to
be included in such registration and the intended method of distribution
thereof.  Such request pursuant to this Section 4.01
is referred to herein as the “Demand Registration Request,” the
registration so requested is referred to herein as the “Demand Registration”
and the party making such request is the “Demanding Party.”  As promptly as practicable, but no later than
ten Business Days after the receipt of the 

 

 

Demand Registration Request, the Company shall give written notice (the
“Demand Exercise Notice”) of such Demand Registration Request to all
Stockholders party hereto and any other Stockholders with piggyback
registration rights pursuant to Section 4.02 hereof or any similar
agreement.

 

2.             Bayer
and Bayer Parties not Parties to the Talecris LLC Stockholders Agreement.  The Company and Talecris LLC acknowledge and
agree that as of the date of the closing of the transactions contemplated by
the Bayer Repurchase Agreement, Bayer and the Bayer Parties ceased to be
parties to the Talecris LLC Stockholders Agreement and ceased to have any
rights, obligations or interests in or under the Talecris LLC Stockholders
Agreement.  The term “Stockholders” as
used in the Talecris LLC Stockholders Agreement shall refer to Talecris LLC and
any other person who executes and delivers a joinder to the Talecris LLC Stockholders Agreement.

 

3.             Governing
Law.  This Amendment shall be
construed and enforced in accordance with the laws of the State Delaware,
without regard to the principles of conflict of laws thereof.

 

4.             Captions;
Counterparts.  The captions in this
Amendment are for convenience only and shall not be considered a part of or
affect the construction or interpretation of any provision of this
Amendment.  This Amendment may be
executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

5.             Severability.  If any
term, provision, covenant or restriction of this Amendment is held by a court
of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Amendment, and of the Talecris LLC Stockholders Agreement,
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated.

 

6.             Effectiveness;
No Other Amendments.  This Amendment
shall be deemed effective as of the date first written above.  Except to the extent expressly amended by
this Amendment, all terms of the Talecris LLC Stockholders Agreement shall
remain in full force and effect without amendment, change or modification.  The Company and Talecris LLC expressly
acknowledge and agree that this Amendment shall not change any of the terms of
the Employee Stockholders Agreement and that the Employee Stockholders
Agreement shall remain in full force and effect without any amendment, change
or modification.

 

7.             References
to Stockholder Agreement.  All
references in the Talecris LLC Stockholders Agreement to the “Agreement” shall
be deemed to be the Talecris LLC Stockholders Agreement as amended by this
Amendment.

 

8.             Defined
Terms.  Capitalized terms used but
not defined herein shall have the meaning assigned to them in the Talecris LLC Stockholders Agreement.

 

2

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of
the date first above written.

 

	
   

  	
  TALECRIS
  BIOTHERAPEUTICS HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lawrence
  Stern

  
	
   

  	
  Name: Lawrence
  Stern

  
	
   

  	
  Title:   Chairman and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  TALECRIS
  HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  CERBERUS-PLASMA HOLDINGS, LLC

  
	
   

  	
  its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  CERBERUS PARTNERS, L.P.

  
	
   

  	
  its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  CERBERUS ASSOCIATES, L.L.C.

  
	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Neporent

  
	
   

  	
  Name: Mark Neporent

  
	
   

  	
  Title:   Senior Managing Director

  
				

 

3

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