Document:

Exhibit 10.2

 

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

2006 RESTRICTED STOCK 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. 2006
Restricted Stock 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 the
granting of Restricted Shares, Restricted Share Units, and Unrestricted Shares.

 

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.

 

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 9 of the Plan, the maximum number of Shares that
the Company may issue for all Awards is 400,000 Shares. 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 that for any reason expires, is forfeited, or is
cancelled, and Shares that are for any other reason not paid or delivered under
this 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 pursuant to
an Award under this Plan, in order to satisfy the withholding or employment
taxes due upon grant, vesting, or distribution of an Award.

 

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 or if the Board otherwise chooses to act in lieu of the
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. 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, 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;

 

(vii)                           to determine if a person
maintains Continuous Service under the Plan; and

 

(viii)                        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

 

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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 Plan. The Company and its Affiliates may, but shall not
be required to, obtain liability insurance for this purpose.

 

5.                                       Eligibility

 

(a)                                  General Rule. 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, and the price (if any) to
be paid for the Shares or the Award. 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 signed by the Company and, if required by
the Committee, by the Participant. 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 19,
20, and 21  unless otherwise specifically
provided in an Award Agreement.

 

(c)                                  Limits on Awards. During the term of the
Plan, no Participant may receive Awards that relate to more than fifty percent
(50%)  of the total number of Shares reserved
for Awards pursuant to Section 3 above, as adjusted pursuant to Section 9 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 surrender for
cancellation some or all of the Awards that have previously been granted to the
Participant under this Plan or otherwise. An 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.

 

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6.                                       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, 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 as 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; Voting Rights. 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 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 6(e) below,
provided that the Participant shall at all times have voting rights with
respect to any Restricted Shares subject to the Participant’s Awards.

 

(d)                                 Issuance of Unrestricted 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. Except as otherwise provided in an Award
Agreement, any dividends paid with respect to Restricted Shares or Shares
underlying Restricted Share Units will only be distributed to a Participant or
duly-authorized transferee in accordance with this Section 6(e). Whenever
Shares are released to a Participant or duly-authorized transferee pursuant to
Section 6(d) above as a result

 

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of
the vesting of Restricted Shares or the Shares underlying Restricted Share
Units are issued to a Participant pursuant to Section 6(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, (i) a number of Shares equal to 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
lump sum payment in an amount equal to the cash dividends payable between the
Grant Date and the settlement date. Unless otherwise provided in an Award
Agreement, to the extent that a Participant forfeits Restricted Shares or
Shares underlying a Restricted Share Unit Award before vesting of the Shares,
such Participant will forfeit all stock dividends and cash dividends
attributable to such Shares.

 

(f)                                    Section 83(b) Elections. A Participant may
make an election under Section 83(b) of the Code (the “Section 83(b) Election”)
with respect to Restricted Shares. If a Participant who has received Restricted
Share Units provides the Committee with written notice of his or her intention
to make a Section 83(b) Election with respect to the Shares subject to such
Restricted Share Units, the Committee may in its discretion convert the
Participant’s Restricted Share Units into Restricted Shares, on a one-for-one
basis, in full satisfaction of the Participant’s Restricted Share Unit Award. The
Participant may then make a Section 83(b) Election with respect to those
Restricted Shares.

 

7.                                       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 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, an Employee shall be deemed to have directed the Company to
withhold or collect from his or her cash compensation an amount sufficient to
satisfy such tax obligations from the next payroll payment otherwise payable
after the date of the vesting of an Award.

 

(c)                                  Special Rules. In the case of a Participant other than an
Employee (or in the case of an Employee where the next payroll payment is not
sufficient to satisfy such tax obligations, with respect to any remaining tax
obligations), in the absence of any other arrangement and to the extent
permitted under Applicable Law, the 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 amount required to
be withheld. For purposes of this Section 7, 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”).

 

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(d)                                 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 7, 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).

 

(e)                                  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 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.

 

8.                                       Non-Transferability of Awards

 

(a)                                  General. Except as set forth in this Section 8, or as
otherwise approved by the Committee, Awards (other than Unrestricted Stock) 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.

 

(b)                                 Limited Transferability Rights. Notwithstanding anything
else in this Section 8, the Committee may in its discretion provide in an Award
Agreement that an Award in the form of Restricted 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.

 

9.                                       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

 

6

 

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, 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 call rights of the Company with respect to issued Shares 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; or

 

(iv)                              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 11 below.

 

Notwithstanding the
above, if the Committee has not taken the action specified in section 9(c)(i)
above, then the Committee shall take either the action specified in 9(c)(ii) or
9(c)(iii) above, unless otherwise provided in the Award Agreement. Further, 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

 

7

 

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 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 call rights or
otherwise places additional restrictions, limitations and conditions on an
Award. The acceleration of vesting and lapse of call 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 or take such other actions as it deems just and equitable in the
circumstances.

 

10.                                 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.

 

11.                                 Modification, Extension, and Renewal of Awards.

 

Within the limitations of
the Plan, the Committee may modify an Award to accelerate the vesting of any
Award, to extend or renew outstanding Awards or to accept the cancellation of
outstanding Awards. Notwithstanding
the foregoing provision, no modification of an outstanding Award shall
materially and adversely affect such Participant’s rights thereunder
(with such an affect being presumed to arise from a modification that would
trigger a violation of Section 409A of the Code), 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.

 

12.                                 Term of Plan.

 

The
Plan shall continue in effect for a term of ten (10) years from its effective
date as determined under Section 16 below, unless the Plan is sooner terminated
under Section 16 below.

 

13.                                 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 (with such an affect being presumed to arise from a
modification that would trigger a violation of Section 409A of the Code)

 

8

 

unless
either it relates to an adjustment pursuant to Section 9 or modification pursuant
to Section 11 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 eliminate provisions which are no longer necessary as a
result of changes in tax or securities laws or regulations, or in the
interpretation thereof.

 

14.                                 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.

 

15.                                 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.

 

16.                                 Effective Date.

 

This Plan shall become
effective on the date on which it receives Board approval.

 

17.                                 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.

 

18.                                 Laws And Regulations.

 

(a)                                  U.S. Securities Laws. This Plan, the grant of Awards and the
obligation of the Company to deliver any of its securities (including, without
limitation, Restricted Shares, Restricted Share Units and Unrestricted 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 

 

9

 

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.

 

19.                                 No Shareholder Rights. Subject to
Section 6 and the terms of any Award Agreement, neither a Participant nor any
transferee of a Participant shall have any rights as a shareholder of the
Company with respect to any Shares or Restricted 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. 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.

 

20.                                 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.

 

21.                                 Pre-IPO Provisions.

 

Subject
to any contrary terms set forth in any Award Agreement, for any period
preceding the date of an Initial Public Offering, this Section 21 shall be
applicable to any Shares subject to or issued pursuant to Awards. The
provisions set forth below shall become null and void as of the date of an
Initial Public Offering.

 

(a)                                  Shareholders’ Agreement. As a condition for the delivery of
any Shares pursuant to any Award, the Committee may require the Participant to
execute and be bound by any agreement that generally exists between the Company
and similarly-situated Shareholders.

 

(b)                                 Call Rights. The Committee in its discretion may provide
that the Company may repurchase Shares issued pursuant to the Plan upon a Participant’s
termination of Continuous Service; provided,
however that any such call right shall be set forth in the
applicable Award Agreement or in another agreement referred to in such
agreement and, provided further, that to the extent required by Applicable Law,
any such repurchase right granted prior to the date on which the Shares become
publicly-traded to a person who is not an Officer, Director or Consultant shall
be upon the following terms: (i) if the repurchase option gives the Company the
right to repurchase the shares upon termination of Continuous Service at not
less than the Fair Market Value of the Shares to be purchased on the date of
termination of Continuous Service, then (A) the right to repurchase shall be
exercised for cash or cancellation of purchase money indebtedness for the Shares
within ninety (90) days of termination of Continuous Service or such longer
period as may be agreed to by the Committee and the Plan participant, and (B)
the right terminates when the Shares become publicly traded; and (ii) if the
repurchase option gives the Company the right to repurchase the Shares upon
termination of the Participant’s Continuous Service at the original purchase
price for such Shares, then (A) the right to repurchase at the original
purchase price shall lapse at the rate of at least twenty 

 

10

 

percent (20%) of the Shares per year over five (5)
years from the Grant Date, and (B) the right to repurchase shall be exercised
for cash or cancellation of purchase money indebtedness for the Shares within
ninety (90) days of termination of Continuous Service or such longer period as
may be agreed to by the Company and the Participant.

 

(c)                                  Put Rights. In the event of a Participant’s termination of
Continuous Service due to the Participant’s death or Disability, the
Participant (or the Participant’s designated beneficiary or estate, in the
absence of a designated beneficiary) shall have the right for ninety (90) days
thereafter to sell to the Company any or all Shares received pursuant to the
Plan for a price, payable in cash, equal to the Fair Market Value of the Shares
to be sold on the date of settlement. The Company’s obligation hereunder shall
be absolutely subject to and contingent upon its ability to make such cash
payments to the extent allowed under (i) Applicable Law, (ii) its financial
covenants with any lender, and (iii) any preferred stockholder agreements; with
the sale of some or all of the Participant’s Shares and the payment due for
such Shares being deferred pursuant to the preceding sentence only to the
extent necessary until the last day of the first fiscal quarter during which
the Company may make a cash payment for such Shares. At such time, the
Participant shall receive a payment equal to the Fair Market Value of the Shares
on such settlement date (or if greater, the date on which the Participant’s
Continuous Service terminated).

 

(d)                                 Market Stand-Off. In
connection with any underwritten public offering by the Company of its equity
securities pursuant to an effective registration statement filed under the federal
securities laws, including the Company’s initial public offering, Participants
shall not directly or indirectly sell, make any short sale of, loan,
hypothecate, pledge, offer, grant, sell or otherwise dispose or transfer, or
agree to engage in any of the foregoing transactions with respect to, any
Shares acquired under this Plan without the prior written consent of the
Company or its underwriters. Such restriction (the “Market Stand-Off”)
shall be in effect for such period of time, not exceeding one hundred eighty
(180) days, following the date of the final prospectus for the offering as may
be requested by the Company or such underwriters. The Market Stand-Off shall in
any event terminate two (2) years after the date of the Company’s initial public
offering. In the event of the declaration of a stock dividend, a spin-off, a
stock split, an adjustment in conversion ratio, a recapitalization or a similar
transaction affecting the Company’s outstanding securities without receipt of
consideration, any new, substituted or additional securities which are by
reason of such transaction distributed with respect to any Shares subject to
the Market Stand-Off, or into which such Shares thereby become convertible,
shall immediately be subject to such Market Stand-Off. In order to enforce the
Market Stand-Off, the Company may impose stop-transfer instructions with
respect to the Shares acquired under this Plan until the end of the applicable
stand-off period. The Company and its underwriters shall be beneficiaries of
the arrangement set forth in this paragraph. This paragraph shall not apply to
Shares registered in a public offering under the federal securities laws, and
the Participant shall be subject to this paragraph only if the directors and
officers of the Company are subject to similar arrangements.

 

(e)                                  Tag-Along Rights and Drag-Along Rights. Unless otherwise provided in any Award Agreement, each Award Agreement
shall incorporate by reference to the “Tag-Along Rights” and “Drag-Along Rights”
provisions set forth in Appendix B.

 

11

 

TALECRIS BIOTHERAPEUTICS HOLDINGS
CORP.

2006 RESTRICTED STOCK 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) and the applicable
laws of any other country or jurisdiction where Awards are granted, 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 a
Restricted Share, a Restricted Share Unit, and an Unrestricted Share, or any
combination thereof, whether alternative or cumulative, authorized by and
granted under this Plan.

 

“Award
Agreement” means any written agreement entered into
between the Company and the Participant, 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.

 

“Change
in Control” means any of the following 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

 

2

 

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 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 9 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.

 

3

 

“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.

 

“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.

 

“Drag-Along Right” has the meaning set forth in Section 21(e).

 

“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” of a share of Common Stock on any date
shall be (i) the closing sale price per share of Common Stock during
normal trading hours on the national securities exchange on which the Common
Stock is principally traded for such date or the last preceding date on which there
was a sale of such Common Stock on such exchange or (ii) if the shares of
Common Stock are then traded in an over-the-counter market, the average of the
closing bid and asked prices for the shares of Common Stock during normal
trading hours in such over-the-counter market for such date or the last
preceding date on which there was a sale of such Common Stock in such market,
or (iii) if the shares of Common Stock are not then listed on a national
securities exchange or traded in an over-the-counter market, such value as the
Committee, in its sole discretion, shall determine.

 

4

 

“Grant
Date” has the meaning set forth in Section 10 of the
Plan.

 

 “Initial Public
Offering” means the initial public offering, if any, of “equity interests”
of the Company or Talecris Holdings, LLC pursuant to an effective registration statement
under the Securities Act. For purposes of this paragraph, “equity interests”
means any shares of any class or series of any securities (including debt
securities) convertible into or exercisable or exchangeable for shares of any
class or series of capital stock of any Person (or which are convertible into
or exercisable or exchangeable for another security which is, in turn,
convertible into or exercisable or exchangeable for shares of any class or
series of capital stock of such Person), whether now authorized or not.

 

“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.

 

 “Participant” means
any holder of one or more Awards under the Plan.

 

 “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. 2006 Restricted Stock 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. For purposes of this paragraph, “ten percent shareholder” 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.

 

“Restricted
Shares” mean Shares subject to restrictions imposed
pursuant to Section 6  of the Plan.

 

“Restricted
Share Units” mean Awards pursuant to Section 6 of the
Plan.

 

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

 

 “Securities Act”
means the Securities
Act of 1933, as amended.

 

5

 

“Share”
or “Common Stock”
means a share of common stock of the Company, as adjusted in accordance with
Section 9 of the Plan.

 

“Tag-Along
Right” has the meaning set forth in Section 21(e).

 

 “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 6 of the
Plan.

 

6

 

TALECRIS
BIOTHERAPEUTICS HOLDINGS CORP.

2006 RESTRICTED
STOCK PLAN

 

 

Appendix
B: “Tag-Along Rights” and “Drag-Along Rights”

 

 

As
referenced in Section 21(e), the “Tag-Along Rights” and “Drag-Along Rights” are
set forth below:

 

I. Tag-Along Rights

 

(a)                                  Subject
to sub-section (f) below, if at any time the Company proposes to sell (a “Tag-Along
Transfer”), in a single transaction or series of transactions, all or any
portion of its Shares held by it (the “Tag-Along Shares”) to a third party,
each Participant shall have the opportunity to sell its Pro Rata Share of the
Tag-Along Shares (“Tag-Along Right”). The Company shall provide written notice
(the “Tag-Along Offer Notice”) of such Tag-Along Transfer not later than 30
days prior to the consummation of the Tag-Along Transfer to the Participants
disclosing (i) the identity of the proposed purchaser, (ii) the number of
Tag-Along Shares, (iii) the price at which the Tag-Along Shares are proposed to
be sold (the “Tag-Along Offer Price”), and (iv) all other material terms and
conditions of the Tag-Along Transfer. The Company agrees to use commercially
reasonable efforts to obtain the agreement of the prospective purchaser to the
participation of the Participants in the contemplated Tag-Along Transfer, and
agrees not to transfer any shares to a prospective purchaser that declines to
allow the participation of the Participants in accordance herein.

 

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

 

7

 

multiplying (x) the total number of Common Stocks owned
by such Participant by (y) a fraction, the numerator of which shall be the
number of Fully Diluted Common Stocks into which Shares proposed to be sold by the
Company are convertible, exercisable or exchangeable and the denominator shall
be the total number of Shares owned by the Company, assuming the conversion or
exchange of all equity interests of the Company owned by such Participant;
provided, however, that if the proposed third party purchaser in the Tag-Along
Transfer is not willing to purchase the total of the Tag-Along Shares to be sold
by the Company and the Pro Rata Share of each Participant at the same per unit
Tag-Along Offer Price and on the same terms and conditions contained in the
offer for the Tag-Along Transfer, then the number of the Tag-Along Shares to be
sold by the Company and the Pro Rata Share of each Participant shall be cut
back pro rata (i.e., the number of Shares that each of the Company and the Participant
may sell shall bear the same percentage to total number of Shares held by each
of them, assuming the conversion or exchange of all equity interests of the
Company owned by such Participant).

 

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

 

(d)                                 If,
at the end of a Notice Period, any of the Participants shall not have exercised
its Tag-Along Right, each such Participant will be deemed to have waived all of
his or her rights under this section with respect to the particular Tag-Along
Transfer described in the applicable Tag-Along Offer Notice.

 

(e)                                  Sub-section
(a) shall not apply to any sale by the Company (i) as part of a Public Offering
by the Company in which the Participants have been offered the right to
participate on a pro rata basis, (ii) pursuant to
an approved sale in which the Participants have been offered the right to
participate on a pro rata basis, (iii) to its
Affiliates provided that any such Affiliate agrees in writing to be bound by
the provisions of this Agreement affecting the equity interests so transferred
or (iv) of less than 10% of the Shares beneficially owned by Company as of the
date hereof.

 

(f)                                    Notwithstanding
anything to the contrary in sub-section, no Participant may elect to
participate in a Tag-Along Transfer during the period after the Company has
given a Notice of Election and the Board has determined that the Company has
sufficient funds available to pay the call price, and has reserved sufficient
funds therefore, and before the earlier of the payment of the call price and
withdrawal by the Company of the Notice of Election.

 

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

 

II. Drag-Along Right

 

(h)                                 In
the event that the Company proposes to sell (the “Drag-Along Sale”) all
or any portion of the Shares held by it to a third party in a single
transaction or series of related transactions that would result in such third party
and its Affiliates becoming the beneficial owner, directly or indirectly, of
50% or more of the Fully Diluted Common Shares of the Company, the Company may
require each Participant to participate in such Drag-Along Sale and sell the
same percentage of its Common Shares, as the Fully Diluted Common Shares that
would be sold by the Company,

 

8

 

assuming the conversion or exchange of all equity
interests of the Company, represent to the total number of Fully Diluted Common
Shares that would be held by the Company, assuming the conversion or exchange
of all equity interests of the Company, on the same terms and conditions and at
the same time or times as applicable to the Company.

 

(i)                                     The
Company shall, promptly upon determining the terms of the Drag-Along Sale,
deliver to each Participant written notice (the “Drag-Along Notice”)
specifying the material terms of the Drag-Along Sale, including the identity of
the purchaser to which the Drag-Along Sale is proposed to be made, the terms
per Fully Diluted Common Stock of such sale and the costs expected to be
incurred by the Company in connection with such sale. In connection with any
such sale, each Participant will agree (i) to make or agree to any customary
representations, covenants, indemnities and agreements as the Company so long
as they are made severally and not jointly and the liabilities. Thereunder are
borne on a pro rata basis based on the numbers of
Fully Diluted Common Stocks into which Shares sold by each Participant are
convertible, exercisable or exchangeable and (ii) to pay their proportionate
share of the reasonable and documented costs (including, without limitation,
reasonable legal fees and expenses) incurred by each of the Company and the Participants
in connection with such Drag-Along Sale to the extent not paid or reimbursed by
the Company or the third party.

 

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

 

(k)                                  On
the date of the consummation of the Drag-Along Sale, the Company shall remit or
cause to be remitted to each Participant its portion of the consideration for
the Common Stocks sold pursuant thereto less its proportionate share of the
reasonable and documented costs (including, without limitation, reasonable
legal fees and expenses) incurred in connection with such Drag-Along Sale to
the extent not paid or reimbursed by the Company or the third party.

 

(l)                                     Anything
herein to the contrary notwithstanding, the Company shall have no obligation to
any Participant to sell any Shares pursuant to this section as a result of any
decision by the Company not to accept or consummate any Drag-Along Sale (it
being understood that any and all such decisions shall be made the Company in
its sole discretion). The Participants shall not be entitled to make any Sale
of Common Shares directly to any third party pursuant to a Drag-Along Sale (it
being understood that all such sales shall be made only on the terms and
pursuant to the procedures set forth in this section).

 

*     *    
*     *    *

 

This Appendix B shall
terminate immediately prior to the consummation of an IPO.

 

9

 

TALECRIS BIOTHERAPEUTICS HOLDINGS
CORP.

2006 RESTRICTED STOCK PLAN

 

 

	
   

  	
  As approved by the Board of Directors on November
  17, 2006, and its Special Dividend Committee on December 6, 2006

  
	
   

  	
   

  
	
   

  	
  /s/ LAWRENCE STERN

  
	
   

  	
  Lawrence Stern

  
	
   

  	
  Executive ChairmanExhibit 10.3

 

Comprehensive 401(k) Plan

Nonstandardized Safe Harbor Adoption Agreement

EMPLOYER
INFORMATION

 

Name of Adopting Employer: Talecris Biotherapeutics Holdings Corp.

Address:  79 TW Alexander Drive,
4101 Research Commons

City: Research Triangle Park 
State: NC   Zip: 27709

Telephone                                           Adopting
Employer’s Federal Tax Identification Number: 34-2032472

Name of Plan: Talecris Biotherapeutics Holdings Corp. Employee Savings
Plan

Plan Sequence Number: 001 
Adopting Employer’s Fiscal Year End (specify month and day):
12/31

Trust Identification Number (if applicable) Account Number: 097390

o
Check here if Related Employers may participate in this Plan and attach a
Related Employer Participation Agreement listing each Related Employer who will
participate in this Plan.

Type of Business (select one):

o
Sole Proprietorship o Partnership x
C Corporation o S Corporation o
Other (specify)

 

SECTION
ONE:  EFFECTIVE DATES
 Complete Part A or B

 

Part A.           Effective Date

 

This is the initial adoption of a profit
sharing plan by the Employer.

The Effective Date of this Plan is 04/01/05.

NOTE:  The Effective Date is usually the first day of the Plan Year in which
this Adoption Agreement is signed.

 

 Part B.           Restatement Date

 

This is a restatement of an existing
qualified plan (a Prior Plan).

The Prior Plan was initially effective on                                                                                              

The Effective Date of this restatement is                                                                                              

NOTE:  The Effective Date is usually the first day of the Plan Year in which
this Adoption Agreement is signed.

 

SECTION
TWO:  ELIGIBILITY
 Complete Parts A through D

 

Part A.              Employer
Profit Sharing Contributions

 

1.     Age and Years of Eligibility
Service

Age Requirement. An Employee will be
eligible to become a Participant in the Plan for purposes of receiving an
allocation of any Employer Profit Sharing Contribution made pursuant to Section
Three of the Adoption Agreement after attaining age           
(no more than 21).

 

Years of Eligible Service Requirement.
An Employee will be eligible to become a Participant in the Plan for purposes
of receiving an allocation of any Employer Profit Sharing Contribution made
pursuant to Section Three 

 

 

of the Adoption Agreement after completing                 (enter 0, 1, 2 or any
fraction less than 2) Years of Eligibility Service.

 

2.     Employees as of Effective
Date

 

Will an Employee employed as of the Effective
Date of this Plan who has not otherwise met the age and Years of Eligibility
Service requirements specified above for Employer Profit Sharing Contributions
be considered to have met those requirements of the Effective Date (select one)?

 

Option 1: o Yes.

 

Option 2: x No.

 

NOTE:  If no option is selected, Option 2 shall be deemed to be selected.

 

3.     Exclusive of Certain Classes
of Employees

 

An Employee will be eligible to become a
Participant in the Plan for purposes of receiving an allocation of my Employer
Profit Sharing Contribution made pursuant to Section Three of the Adoption
Agreement unless such Employee is (select any that apply):

 

a.    x   Included in a unit of
Employees covered by a collective bargaining agreement between the Employer and
Employee representatives, if retirement benefits were the subject of good faith
bargaining and if two percent or less of the Employees who are covered pursuant
to that government are professionals as defined in Section 1.410(b)-9 of the
Income Tax Regulations. For this purpose, the term “employee representatives”
does not include any organization more than half of whose members are Employees
who are owners, officers, or executives of the Employer.

 

b.    o   A nonresident alien (within the
meaning of Section 7701(b)(1)(B) of the Code) who received no earned income
(within the meaning of Section 911(d)(2) of the Code) from the Employer which
constitutes income from sources within the United States (within the meaning of
Section 861(a)(3) of the Code).

 

c.    o   Employees who became Employees
as the result of a transaction under Section 410(b)(6)(C) of the Code. Such
Employees will be excluded during the period beginning on the date of the
transaction and ending on the last day of the first Plan Year beginning after
the date of the transaction. A transaction under Section 410 (b)(6)(C) of the
Code is an asset or stock acquisition, merger, or similar transaction involving
a change in the employer of the employees of a trade or business.

 

d.    x   A Leased Employee.

 

e.    o   A Highly Compensated Employee.

 

f.    o   Incorrectly determined to be
other than an Employee of the Employer (e.g., an independent contractor).

 

2

 

g.    x  Other (define)
casual employees, seasonal or co-op employees, student interns, work-study
students

 

4.     Entry Dates

 

The Entry Dates for purposes of Employer
Profit Sharing Contributions shall be (select one):

 

Option 1: o      The first day of the Plan
Year and the first day of the seventh month of the Plan Year.

 

Option 2: o      The first day of the Plan
Year and the first day of the fourth, seventh and tenth months of the Plan
Year.

 

Option 3: o      The first day of the
Plan Year.

 

Option 4: x      Other (specify)
upon eligibility

 

NOTE:  If no option is selected, Option 1 shall be deemed to be selected. Option
3 or Option 4 can be selected only if the eligibility requirements and Entry
Dates are coordinated such that each Employee will become a Participant in the
Plan no later than the earlier of: (1) the first day of the Plan Year beginning
after the date the Employee satisfies the age and service requirements of
Section 410(a) of the Code; or (2) six months after the date the Employee
satisfies such requirements.

 

Part B.              Effective
Deferrals

 

1.     Age and Years of Eligibility
Service

 

Age Requirement. An
Employee will be eligible to become a Contributing Participant (and thus be
eligible to make Elective Deferrals) after attaining age           
(no more than 21).

 

Years of Eligibility Service Requirement. An
Employee will be eligible to become a Contributing Participant in the Plan (and
thus be eligible to make Elective Deferrals) after completing              
(enter 0, 1 or any fraction less than 1)
Years of Eligibility Service.

 

2.     Employees Employed as of
Effective Date

 

Will an Employee employed as of the date that
Elective Deferrals may commence, who has not otherwise met the age and Years of
Eligibility Service requirements specified above for Elective Deferrals, be
considered to have met those requirements as of the date on which Elective
Deferrals may begin to be made to the Plan?

 

Option 1: 
o  Yes.

 

Option 2: 
x No.

 

NOTE:  If no option is selected, Option 2 shall be deemed to be selected.

 

3

 

3.     Exclusion of Certain Classes
of Employees

 

An Employee will be eligible to become a
Contributing Participant (and thus eligible to make Elective Deferrals) unless
such Employee is (select any that apply):

 

a.    x   Included in a unit of Employees
covered by a collective bargaining agreement between the Employer and Employee
representatives, if retirement benefits were the subject of good faith
bargaining and if two percent or less of the Employees who are covered pursuant
t that agreement are professionals as defined in Section 1.410(b)-9 of the
Income Tax Regulations. For this purpose, the term “employee representatives”
does not include any organization more than half of whose members are Employees
who are owners, officers, or executives of the Employer.

 

b.    o   A nonresident alien (within the
meaning of Section 7701(b)(1)(B) of the Code) who received no earned income
(within the meaning of Section 911(d)(2) of the Code) from the Employer which
constitutes income from sources within the United States (within the meaning of
Section 861(a)(3)of the Code).

 

c.    o   Employees who became Employees
as the result of a transaction under Section 410(b)(6)(C) of the Code. Such
Employees will be excluded during the period beginning on the date of the
transaction and ending on the last day of the first Plan Year beginning after
the date of the transaction. A transaction under Section 410(b)(6)(C) of the
Code is an asset or stock acquisition, merger, or similar transaction involving
a change in the employer of the employees of a trade or business.

 

d.    x   A Leased Employee.

 

e.    o   A Highly Compensated Employee.

 

f.    x   Incorrectly determined to be
other than an Employee of the Employer (e.g. an independent contractor).

 

g.    x  Other (define)
casual employees, seasonal or co-op employees, student interns, work-study
students

 

4.     Entry Dates

 

The Entry Dates for purposes of making
Elective Deferrals shall be (select one):

 

Option
1:  o      The first day of the
Plan Year and the first day of the seventh month of the Plan Year.

 

Option
2:  o      The first day of the
Plan Year and the first day of the fourth, seventh and tenth months of the Plan
Year.

 

Option
3:  o     The first day of the Plan
Year.

 

4

 

Option
4:  x     Other (specify)upon eligibility

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected. Option 3 or Option 4 can be selected
only if the eligibility requirements and Entry Dates are coordinated such that
each Employee will become a Participant in the Plan no later than the earlier
of: (1) the first day of the Plan Year beginning after the date the Employee
satisfies the age and service requirements of Section 410(a) of the Code; or
(2) six months after the date the Employee satisfies such requirements.

 

Part C.              Matching
Contributions

 

1.     Age and Years of Eligibility
Service

 

Age Requirement. If
Matching Contributions (or Qualified Matching Contributions, if applicable)
will be made to the Plan, a Contributing Participant will be eligible to
receive Matching Contributions (or Qualified Matching Contributions, if
applicable) after attaining age          
(no more than 21).

 

Years of Eligibility Service Requirement. If
Matching Contributions (or Qualified Matching Contributions, if applicable)
will be made to the Plan, a Contributing Participant will be eligible to
receive Matching Contributions (or Qualified Matching Contributions, if
applicable) after completing           
 (enter 0, 1, 2 or any
fraction) Years of Eligibility Service.

 

2.     Employees Employed as of the
Effective Date

 

If Matching Contributions (or Qualified
Matching Contributions, if applicable) will be made to the Plan, will an
Employee employed as of the date that Matching Contributions may commence, who
has not otherwise met the age and Years of Eligibility Service requirements
specified above for Matching Contributions, be considered to have met those
requirements as of the date on which Matching Contributions may begin to be
made to the Plan?

 

Option 1: 
o     Yes.

 

Option 2: 
x     No.

 

NOTE:  If no option is selected,
Option 2 shall be deemed to be selected.

 

3.     Exclusion of Certain Classes
of Employees

 

A Contributing Participant will be eligible
to receive Matching Contributions (or Qualified Matching Contributions if
applicable), unless such Employee is (select any that apply):

 

a.    x   Included in a unit of Employees
covered by a collective bargaining agreement between the Employer and Employee
representatives, if retirement benefits were the subject of good faith
bargaining and if two percent or less of the Employees who are covered pursuant
to that agreement are professionals as defined in Section 1.410(b)-9 

 

5

 

of the Income Tax Regulations. For this
purpose, the term “employment representatives” does not include any
organization more than half of whose members are Employees who are owners,
officers, or executives of the Employer.

 

b.    o   A nonresident alien (within the
meaning of Section 7701(b)(1)(B) of the Code) who received no carried income
(within the meaning of Section 911 (d)(2) of the Code) from the Employer which
constitutes income from sources within the United States (within the meaning of
Section 861(a)(3) of the Code).

 

c.    o   Employees who became Employees
as a result of a transaction under Section 410(b)(6)(C) of the Coe. Such
Employees will be excluded during the period beginning on the date of the
transaction and ending on the last day of the first Plan Year beginning after
the date of the transaction. A transaction under Section 410(b)(6)(C) of the
Code is an asset or stock acquisition, merger, or similar transaction involving
a change in the employer or the employees of a trade or business.

 

d.   x   A Leased Employee.

 

e.    o   A Highly Compensated Employee.

 

f.   x    Incorrectly determined to be
other that an Employee of the Employer (e.g., an independent contractor).

 

g.   x   Other (define) casual
employees, seasonal employees, student interns, work-study students

 

4.     Entry Dates

 

If Matching Contributions (or Qualified
Matching Contributions) will be made to the Plan, the Entry Dates for purposes
of Matching Contributions (for Qualified Matching Contributions, if applicable)
shall be (select one):

 

Option 1:  o       The first day of the plan Year and the first day
of the seventh month of the Plan Year.

 

Option 2:  o       The first day of the Plan Year and the first day
of the fourth, seventh and tenth months of the Plan Year.

 

Option 3:  o       The first day of the Plan year.

 

Option 4:  x       Other (specify)  upon
eligibility

 

NOTE:  If no option is selected, Option
1 shall be deemed to be selected. Option 3 or Option 4 can be selected only if
the eligibility requirements and Entry Dates are coordinated such that each
Employee will become a Participant in the Plan no later than the earlier of
:  (1) the first day of the Plan Year
beginning after the date the Employee satisfies the age and service
requirements of Section 410(a) of the Code; or (2) six months after the date
the Employee satisfies such requirements.

 

6

 

Part D                     Hours
Requested for Eligibility Purposes

 

1.                      Hours
of Service (no more than 1,000) shall be required to constitute a Year of
Eligibility Service.

2.                      
Hours of Service (no more than 500 but less than the number specified in Part
D, item 1, above) must be exceeded to avoid a Break in Eligibility Service.

3.        For purposes of
determining Years of Eligibility Service, an Employee shall be given credit for
Hours of Service with the following

 

SECTION
THREE:  CONTRIBUTIONS

Complete Parts A through I

 

Part A.              Employer
Profit Sharing Contributions

 

1.     Contributions Formula (select one):

 

Option 1:  x       Discretionary Formula. For each plan Year the
Employer will contribute an amount to be determined from year to year.

 

Option 2:  o       Fixed Formula.           
percent of the Compensation of all Qualifying Participants under the plan for
the Plan Year.

 

Option 3:  o       Fixed Percent of Profits Formula.           
percent of the Employer’s profits that were in excess of $          .

 

Option 4:  o       Frozen Plan. This Plan is frozen effective                 
and the Employer will not make additional contributions to the plan after such
date.

 

Option 5:  o       Government Contract Formula. For each Hour of
Service of covered employment under a government contract, the Employer shall
contribute an amount as described in Section 3.01(B)(3) of the Plan.

 

Option 6:  o       Not applicable. The Employer will not make
Employer Profit Sharing Contributions to this Plan.

 

Note:  If no option is selected,
Option 1 shall be deemed to be selected. If Option 5 is selected, the
government contract allocation formula must be selected in item 2 below.

 

2.     Allocation
Formula (select one)

 

Option 1:  x     Pro Rata Formula. Employer Profit Sharing
Contributions shall be allocated to the Individual Accounts of Qualifying
Participants in the ratio that each Qualifying Participant’s Compensation for
the Plan Year bears to the total Compensation of all Qualifying Participants
for the Plan Year.

 

Option 2:  o     Flat Dollar Formula. Employer Profit Sharing
Contributions allocated to the Individual Accounts of 

 

7

 

Qualifying Participants for each Plan Year
shall be the same dollar amount for each Qualifying Participant.

 

Option 3:  o       Integrated Formula. Employer Profit Sharing
Contributions shall be allocated pursuant to the integrated allocation formula
in Section 3.01(B)(2) of the Plan.

 

The
integration level will be (select one);

 

Suboption (a):      o        The Taxable Wage Base.

 

Suboption (b):      o        $                    
(a dollar amount less than the Taxable Wage Base).

 

Suboption (c):      o                        
percent (not more than 100 percent) of the
Taxable Wage Base.

 

Note:  If no
suboption is selected, Suboption (a) shall be deemed to be selected.

 

Option 4:  o       Government Contract Formula. Employer profit
Sharing Contributions shall be allocated pursuant to the government contract
contribution formula selected in Part A, item 1 above.

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected. Notwithstanding the foregoing, if no
option is selected and the government contract contribution formula is selected
in item 1 above, Option 4 will be deemed to be selected. Option 4 cannot be
selected unless the government contract contribution formula in item 1 above
applies.

 

3.        Qualifying Participants

A Participant will be a Qualifying Participant and thus
entitled to share in the Employer Profit Sharing Contributions for any Plan
Year only if the Participant is a Participant who has satisfied all of the
requirements of Section Two, Part A of this Adoption Agreement on at least one
day of such Plan Year and satisfies the following additional condition(s) (select one or more):

 

Option 1:  o       No additional Conditions.

 

Option 2:  o       Hours of Service Requirement. The Participant
completes at least                   
(not more than 1000) Hours of Service
during the Plan Year. However, this condition will be waived for the following
reason(s) (select at least one):

 

o       The Participant’s Death

 

o       The Participant’s
Termination of Employment after having incurred a Disability.

 

8

 

o       The Participant’s
Termination of Employment after having reached Normal Retirement Age.

 

o       The Participant is employed
on the last day of the Plan Year.

 

o       The condition will not be
waived.

 

Option
3:  x     Last Day Requirement. The
Participant is an Employee of the Employer on the last day of the Plan Year. However,
this condition will be waived for the following reason(s) (select at
least one):

 

x       The Participant’s Death

 

x       The Participant’s
Termination of Employment after having incurred a Disability.

 

x       The Participant’s
Termination of Employment after having reached Normal Retirement Age.

 

o       The Participant’s
Termination of Employment after having completed at least          
Hours of Service during the Plan Year.

 

o       The condition will not be
waived.

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected.

 

4.        Contributions to Disabled
Participants

 

Will a Participant who has incurred a
Disability be entitled to an Employer Profit Sharing Contribution pursuant to
Section 3.01(B)(1) of the Plan (select one)?

 

Option 1:  o     Yes.

 

Option 2:  x     No.

 

NOTE:  If no option is selected,
Option 2 shall be deemed to be selected.

 

5.        One-Time Irrevocable
Elections

May an Employee make a one-time irrevocable election, as
described in Section 3.02 of the Plan, upon first becoming eligible to
participate in the Plan to have the Employer make Employer Profit Sharing
Contributions to the Plan on such Employee’s behalf (select one)?

 

Option 1:  o     Yes.

 

Option 2:  x     No.

 

NOTE:  If no option is selected,
Option 2 shall be deemed to be selected.

 

9

 

Part B.              Elective
Deferrals

 

1.     Authorization of Elective
Deferrals

 

Will Elective Deferrals be permitted under
this Plan? (select one)

 

Option 1:  x     Yes.

 

Option 2:  o     No.

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected. Complete the remainder of Part B only
if Option 1 is selected.

 

Elective Deferrals may commence on March 1,
2005

 

NOTE:  This date may be no earlier than
the date this Adoption Agreement is signed because Elective Deferrals cannot be
made retroactively.

 

2.     Limits on Elective Deferrals

 

If Elective Deferrals are permitted under the
Plan, a Contributing Participant may elect under a salary reduction agreement
to have his or her Compensation reduced by an amount as described below (select one):

 

Option 1:  x     An amount equal to a percentage of the Contributing
Participant’s Compensation from 1         percent
to 18          percent in
increments of 1           percent.

 

Option 2:  o     An amount of the Contributing Participant’s
Compensation not less than $                    
and not more than $                     .

 

Option 3:  o     An amount equal to a percentage of the
Contributing Participant’s Compensation not to exceed the limits imposed by
Sections 401(k), 402(g) and 415 of the Code.

 

The amount of such reduction shall be
contributed to the Plan by the Employer on behalf of the Contributing
Participant. For any taxable year, a Contributing Participant’s Elective
Deferrals shall not exceed the limit contained in Section 402(g) of the Code in
effect at the beginning of such taxable year.

 

NOTE:  Unless specified otherwise in this Adoption Agreement, bonuses shall be
included in Compensation and will, therefore, be subject to a Participant’s
salary reduction agreement.

 

3.     Separate Deferral Election
for Bonuses

 

Instead of or in addition to making Elective
Deferrals through payroll deduction, may a Contributing Participant make a
separate deferral election to contribute to the Plan, as an Elective Deferral,
part or all of a bonus rather than receive such bonus in cash (select one)?

 

10

 

Option 1:  o     Yes.

 

Option 2:  x     No.

 

NOTE:  If no option is selected, Option 2 shall be deemed to be selected. A
separate deferral election made with respect to a bonus shall not be subject to
the limits described under the portion of this Adoption Agreement titled “Limits
on Elective Deferrals” unless such limits are prescribed by the Code or related
regulations.

 

4.     Ceasing Elective Deferrals

 

A Contributing Participant may prospectively
revoke a salary reduction agreement to cease Elective Deferrals (select one):

 

Option 1:  o     As of the first day of the Plan Year and the first
day of the seventh month of the Plan year.

 

Option 2:  o     As of the first day of any quarter.

 

Option 3:  o     As of the first day of any month.

 

Option 4:  o     As of any Entry Date;

 

Option 5:  x     As of such times established by the Plan
Administrator in a uniform and nondiscriminatory manner.

 

Option 6:  o     Other (Specify, must be at least
once per year.) 

 

NOTE:  If no option is selected, Option 1 shall be deemed to be selected.

 

5.     Return as a Contributing
Participant After Ceasing Elective Deferrals

 

A Participant who ceases Elective Deferrals
by revoking a salary reduction agreement may return as a Contributing
Participant (select one):

 

Option 1:  o     No sooner than as of the first day of the next
Plan Year.

 

Option 2:  o     As of the first day of the Plan Year and the first
day of the seventh month of the Plan Year.

 

Option 3:  o     As of the first day of any subsequent quarter.

 

Option 4:  o     As of any subsequent Entry Date.

 

Option 5:  x     As of such times established by the Plan
Administrator in a uniform and nondiscriminatory manner.

 

Option 6:       Other (Specify, one
or more dates established by the Plan Administrator in a uniform and
nondiscriminatory manner and not later than the first day of the next Plan Year.)

 

11

 

NOTE:  If not option is selected,
Option 2 shall be deemed to be selected.

 

6.     Changing Elective Deferral
Amounts

 

A Contributing Participant may modify a
salary reduction agreement to prospectively increase or decrease the amount of
his or her Elective Deferrals (select one):

 

Option 1:  o     As of the first day of the Plan Year and the first
day of the seventh month of the Plan year.

 

Option 2:  o     As of the first day of any quarter.

 

Option 3:  o     As of the first day of any month.

 

Option 4:  o     As of any Entry Date;

 

Option 5:  x     As of such times established by the Plan
Administrator in a uniform and nondiscriminatory manner.

 

Option 6:  o     Other (Specify, one or more dates
established by the Plan Administrator in a uniform and nondiscriminatory manner.)

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected.

 

7.     Claiming Excess Elective
Deferrals

 

A Participant who claims Excess Elective
Deferrals for the preceding calendar year must submit his or her claim in
writing to the Plan Administrator by (select one):

 

Option 1:  x     March 1.

 

Option 2:  o     Other (specify a date not later than April 15) 

                                                                                         .

 

NOTE:  If no option is selected, Option 1 shall be
deemed to be selected.

 

8.     Automatic Elective Deferrals

 

a.        Authorization of Automatic
Elective Deferrals

 

If an employee who has met the eligibility
requirements set forth in Section Two, Part B of the Adoption Agreement fails
to provide the Employer a salary reduction agreement, will a portion of such
eligible Employee’s Compensation be automatically withheld and contributed to
the Plan as an Elective Deferral?

 

Option 1:  o     Yes.

 

Option 2:  x     No.

 

12

 

b.        Amount of Automatic
Elective Deferrals

 

The following percentage or amount of each
eligible Employee’s Compensation will be automatically withheld and contributed
to the Plan as an Elective Deferral (select and complete one):

 

Option 1:  o                     
Percent.

 

Option 2:  o     $                         .

 

NOTE:  If no option is selected, Option 1 shall be
deemed selected and three percent of Compensation shall be withheld.

 

Part C.              Matching
Contributions

 

1.     Authorization of Matching
Contributions

 

Will the Employer make Matching Contributions
to the Plan on behalf of a Qualifying Contributing Participant (select one)?

 

Option 1:  o     Yes, but only with respect to a Contributing
Participant’s Elective Deferrals.

 

Option 2:  o     Yes, but only with respect to a Participant’s
Nondeductible Employee Contributions.

 

Option 3:  x     Yes, with respect to both Elective Deferrals and
Nondeductible Employee Contributions.

 

Option 4:  o     No.

 

NOTE:  If no option is selected,
Option 4 shall be deemed to be selected. Complete the remainder of this Part C
only if Option 1, 2 or 3 is selected.

 

2.     Matching Contribution Formula

 

If the Employer will make Matching Contributions,
then the amount of such Matching Contributions made on behalf of a Qualifying
Contributing Participant each Plan Year shall be (select
one)

 

Option 1:  o     An amount equal to               
percent of such Contributing Participant’s Elective Deferral (and/or
Nondeductible Employee Contribution, if applicable) which does not exceed               
percent of the Contributing Participant’s Compensation.

 

Option 2:  x     An amount equal to the sum of 100           
percent of the portion of such Contributing Participant’s Elective Deferral
(and/or Nondeductible Employee Contribution, if applicable) which does not
exceed 2            percent
of the Contributing Participant’s Compensation plus 50          
percent of the portion of such Contributing Participant’s Elective Deferral
(and/or Nondeductible Employee Contribution, if applicable) which exceeds 2        
percent 

 

13

 

but does not exceed 6         
percent of the Contributing Participant’s Compensation.

 

Option 3:  o     Such amount, if any, equal to that percentage of
each Contributing Participant’s Elective Deferral (and/or Nondeductible
Employee Contribution, if applicable) which the Employer, in its sole
discretion, determines from year to year.

 

Option 4:  o     Other formula (Specify an amount equal to
a percentage of the Elective Deferrals (and/or Nondeductible Employee
Contribution, if applicable) of each Contributing Participant entitled thereto)

                                                                                                     .

 

NOTE:  If Option 4 is selected, the
formula specified can only allow Matching Contributions to be made with respect
to a Contributing Participant’s Elective Deferrals (and/or Nondeductible
Employee Contribution, if applicable). The proper amount of Matching
Contributions may be determined either periodically throughout the Plan Year
(e.g., each payroll period) or at the end of each Plan Year as long as the
proper amount is determined in a uniform and nondiscriminatory manner).

 

4.     Qualifying Contributing
Participants

 

A Contributing Participant who satisfies the
eligibility requirements described in this Section Two of the Adoption
Agreement. Parts B and C will be a Qualifying Contributing Participant and thus
entitled to share in Matching Contributions for any Plan Year only if the
Participant is a Contributing Participant and satisfies the following
additional conditions (select one ore more):

 

Option 1:  x     No additional Conditions.

 

Option 2:  o     Hours of Service Requirement. The Contributing
Participant completes at least           
Hours of Service during the Plan Year. However, this condition will be waived
for the following reason(s) (select at least one):

 

o       The Contributing
Participant’s Death

 

o       The
Contributing Participant’s Termination of Employment after having incurred a
Disability.

 

o       The Contributing
Participant’s Termination of Employment after having reached Normal Retirement
Age.

 

o       The Contributing
Participant is employed on the last day of the Plan Year.

 

o       The condition will not be
waived.

 

14

 

Option
3:  o     Last Day Requirement. The
Participant is an Employee of the Employer on the last day of the Plan Year. However,
this condition will be waived for the following reason(s) (select at
least one):

 

o       The Contributing
Participant’s Death

 

o       The Contributing
Participant’s Termination of Employment after having incurred a Disability.

 

o       The Contributing
Participant’s Termination of Employment after having reached Normal Retirement
Age.

 

o       The Contributing
Participant’s Termination of Employment after having completed at least          
Hours of Service during the Plan Year.

 

o       The condition will not be
waived.

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected.

 

Part D.              Qualified
Nonelective Contributions

 

1.     Qualified Nonelective
Contribution Formula

 

For each Plan Year, the Employer may
contribute an amount to be determined from year to year.

 

2.     Allocation of Qualified
Nonelective Contributions

 

Allocation of Qualified Nonelective
Contributions to Participants entitled thereto shall be made (select one):

 

Option 1:  o     In the ratio which each non-Highly compensated
Employee Participant’s Compensation for the applicable Plan Year bears to the
total Compensation of all non-Highly Compensated Employee Participants for such
Plan Year.

 

Option 2:  o     In the ratio which each Participant’s Compensation
for the applicable Plan Year bears to the total Compensation of all
Participants for such Plan Year.

 

Option 3:  o     In the ratio which each non-Highly Compensated
Employee Participant’s Compensation not in excess of $                       
for the applicable Plan Year bears to the total Compensation of all non-Highly
Compensated Employee Participants entitled to an allocation not in excess of $                       
for such Plan Year.

 

Option 4:  o     In an amount, determined pursuant to Section 3.09
of the Plan, required to satisfy either the Actual Deferral Percentage test
described in Section 3.13 of the Plan, the 

 

15

 

Actual Contribution Percentage test described
in Section 3.14 of the Plan, or both.

 

Option 5:  x     In an amount, determined pursuant to Section 3.09
of the Plan, required to satisfy either the Actual Deferral Percentage test
described in Section 3.13 of the Plan, the Actual Contribution Percentage test
described in Section 3.14 of the Plan, or both. Notwithstanding anything in the
Plan to the contrary, allocations will be made only to those non-Highly
Compensated Employees who are employed on the last day of the applicable Plan
Year.

 

NOTE:  If not option is selected,
Option 4 shall be deemed to be selected.

 

Part E.               Qualified
Matching Contribution Formula

 

If the Employer will make Qualified Matching
Contributions, then the amount of such Qualified Matching Contributions made on
behalf of a Qualifying Participant each Plan Year shall be (select one):

 

Option 1:  o               An amount equal to               
percent of such Contributing Participant’s Elective Deferral (and/or
Nondeductible Employee Contribution, if applicable) which does not exceed               
percent of the Contributing Participant’s Compensation.

 

Option 2:  o               An amount equal to the sum of               
percent of the portion of such Contributing Participant’s Elective Deferral
(and/or Nondeductible Employee Contribution, if applicable) which does not
exceed        percent of the Contributing
Participant’s Compensation plus        
percent of the portion of such Contributing Participant’s Elective Deferral
(and/or Nondeductible Employee Contribution, if applicable) which exceeds        
percent but does not exceed         percent
of the Contributing Participant’s Compensation.

 

Option 3:  x               Such amount, if any, as determined by the
Employer in its sole discretion, equal to that percentage of the Elective
Deferrals (and/or Nondeductible Employee Contribution, if applicable) of each
Contributing Participant entitled thereto which would be sufficient to cause
the Plan to satisfy either the Actual Deferral Percentage tests (described in
Section 3.13 of the Plan) or the Actual Contribution Percentage tests
(described in Section 3.14 of the Plan) for the Plan Year or both.

 

Option 4:  o               Other formula (Specify an
amount equal to a percentage of the Elective Deferrals (and/or Nondeductible
Employee Contribution, if applicable) of each Contributing Participant entitled
thereto) 

                                                                                                                         .

 

NOTE:  If no option is selected,
Option 3 shall be deemed to be selected.

 

16

 

2.     Participants Entitled to
Qualified Matching Contributions

 

Qualified Matching Contributions, if made to
the Plan, will be made on behalf of (select one):

 

Option 1:  x     Each Contributing Participant who makes Elective
Deferrals who is a non-Highly Compensated Employee.

 

Option 2:  o     All Contributing Participants who make Elective
Deferrals.

 

NOTE:
 If no option
is selected, Option 1 shall be deemed to be selected.

 

3.        Plan Year Limit On
Qualified Matching Contributions

 

Notwithstanding the Qualified Matching
Contribution formula specified above, no Qualified Matching Contributions in
excess of $                 
or                  
percent of a Contributing Participant’s Compensation will be made with respect
to any Contributing Participant for any Plan Year.

 

Part F.               Safe
Harbor CODA Contributions

 

A Plan intending to satisfy the requirements
of Section 401(k)(12) and 401(m)(11) of the Code generally must satisfy such
requirements, including the notice requirement, for the entire Plan Year. See
Notice 98-52, 1998-46 I.R.B. 16, Notice 2000-3, 2000-4 I.R.B. 413, and Rev.
Proc. 2000-20, 2000-6 I.R.B. 553, for more information.

 

1.     Application of Safe Harbor
CODA

 

Will the safe harbor CODA provisions of
Section 3.15 of the Plan apply? (select one)?

 

Option 1:  o     Yes.

 

Option 2:  x     No.

 

NOTE:  If no opinion is selected, Option 2 will be deemed to be selected. Complete
the remainder of this Part F only if Option 1 is selected. If Option 1 is
selected, the safe harbor CODA provisions of the Plan shall apply for the Plan
Year and any provisions relating to the ADP or ACP tests shall not apply.

 

2.     ADP Test Safe Harbor
Contributions

 

In lieu of Basic Matching Contributions, the
Employer will make the following contributions for the Plan Year (select one).

 

Option 1:  o     Enhanced Marching Contributions

 The Employer will make Matching
Contributions to the Individual Account of each Eligible Employee in an amount
equal to the sum of:

 

17

 

(i)       the Employee’s Elective Deferrals that do not
exceed               
percent of the Employee’s Compensation for the Plan Year plus

 

(ii)                     
percent of the Employee’s Elective Deferrals that exceed               
percent of the Employee’s Compensation for the Plan Year and that do not exceed
              
percent of the Employee’s Compensation for the Plan Year.

 

NOTE:  In the bank in (i) above
and the second blank in (ii) above, insert a number that is equal to or greater
than three, but less than or equal to six. The first and last blanks in (ii)
must be completed so that, at any rate of Elective Deferrals, the Matching
Contribution is at least equal to the Matching Contribution receivable if the
Employer were making Basic Matching Contributions, but the rate of match cannot
increase as Elective Deferrals increase. For example, if “4” is inserted in the
blank in (i), (ii) need not be completed.

 

Option 2:  o     Safe Harbor Nonelective Contributions

 The Employer will make a Safe Harbor
Nonelective Contribution to the account of each Eligible Employee in an amount
equal to                
(not less than 3) percent of the Employee’s
Compensation for the Plan Year.

 

Option 3:  o     Not Applicable.

 The Employer will make Basic Matching
Contributions as described in Section 3.15 of the Plan.

 

3.     Recipient Plan

 

The ADP Test Safe Harbor Contributions will
be made to (select one only if Option 1 is selected for item 1
above):

 

Option 1:  o     This Plan.

 

Option 2:  o     Other plan (specify plan of the Employer) 

                                                                                                                                          .

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected.

 

4.     ACP Test Safe Harbor Matching
Contributions

 

NOTE:  No additional contributions are required in order to satisfy the
requirements for a safe harbor CODA. However, if the Employer desires to make
Matching Contributions other than Basic or Enhanced Matching Contributions,
then the following must be completed.

 

18

 

For the Plan Year, the Employer will make ACP
Test Safe Harbor Matching Contributions to the Individual Account of each
Eligible Employee in the amount of (select one):

 

Option 1:  o                      percent
of the Employee’s Elective Deferrals that do not exceed six  percent of the Employee’s Compensation for
the Plan Year.

 

Option 2:  o                      percent
of the Employee’s Elective Deferrals that do not exceed                  
percent of the Employee’s Compensation for the Plan Year plus                  
percent of the Employee’s Elective Deferrals thereafter, but no Matching Contributions
will be made on Elective Deferrals that exceed six percent of Compensation.

 

NOTE:  The number inserted in the
third blank cannot exceed the number inserted in the first blank.

 

Option 3:  o     The Employee’s Elective Deferrals that do not
exceed a percentage of the Employee’s Compensation for the Plan Years. Such
percentage is determined by the Employer for the year but in no event can
exceed four percent of the Employee’s Compensation.

 

Part G.              Other
Contributions

 

1.     Rollover Contributions

 

May an Employee make rollover contributions
to the Plan pursuant to Section 3.03 of the Plan (select one)?

 

Option 1:  x     Yes.

 

Option 2:  o     Yes, unless such Employee is part of an excluded
class of Employees.

 

Option 3:  o     Yes, but only after becoming a Participant.

 

Option 4:  o     No.

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected.

 

2.        Transfer Contributions

 

May an Employee make transfer contributions
to the Plan pursuant to Section 3.04 of the Plan (select
one)?

 

Option 1:  x     Yes.

 

Option 2:  o     Yes, unless such Employee is part of an excluded
class of Employees.

 

Option 3:  o     Yes, but only after becoming a Participant.

 

19

 

Option 4:  o     Yes, but only if the assets are exempt from the
Qualified Joint and Survivor Annuity rules as described in Section 5.13 of the
Plan (without regards to Section 5.13(E) of the Plan) thereof.

 

Option
5:  o     No.

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected.

 

3.        Nondeductible Employee
Contributions

 

May an Employee make Nondeductible Employee
Contributions pursuant to Section 3.08 of the Plan (select one)?

 

Option 1:  x  Yes.         If “Yes,” check here if
such contributions will be mandatory. o

 

Option 2:  o  No.

 

NOTE:  If no option is selected,
Option 2 shall be deemed to be selected.

 

Nondeductible Employee Contributions may
commence on 

                                                                                                                                                                   .

 

4.        Top-Heavy Contributions

 

a.        Minimum Allocation or
Benefit

 

For any Plan Year with respect to which this
Plan is a Top-Heavy Plan, any minimum allocation required pursuant to Section
3.01(E) of the Plan shall be made (select one):

 

Option 1:  x     To this Plan.

 

Option 2:  o     To the following plan maintained by the Employer (specify name and plan sequence number of plan)                                                                                                    .

 

Option 3:  o     In accordance with the method described on an
attachment to this Adoption Agreement. (Attach language
describing the method that will be used to satisfy Section 416 of the Code. Such
method must preclude Employer discretion.)

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected.

 

b.        Participants Entitled To
Receive Minimum Allocation

 

Any minimum allocation required pursuant to
Section 3.01(E) of the Plan shall be allocated to the Individual Accounts of (select one):

 

Option 1:  x     Participants who are not Key Employees.

 

Option 2:  o     All Participants.

 

20

 

NOTE:  If no option is selected, Option 1 shall be deemed to be selected.

 

c.        Top-Heavy Ratio

 

For purposes of establishing the Present
Value of benefits under a defined benefit plan to compute the top-heavy ratio
as described in Section 7.19(B) of the Plan, any benefit shall be discounted
only for mortality and interest based on the following (select one):

 

Option 1:  x     Not applicable because the Employer has not
maintained a defined benefit plan.

 

Option 2:  o     The interest rate and mortality table specified
for this purpose in the defined benefit plan.

 

Option 3:  o     Interest rate of            
percent and the following mortality table (specify) 

                                                                                                                         .

Part H.               Minimum
Coverage Testing Alternatives

 

Will this Plan apply the automatic corrective
procedures described in Section 3.01(B)(4) of the Plan for any year in which
the minimum coverage test described in Section 410(b) of the Code is not
satisfied (select one):

 

Option 1:  x  Yes.

 

Option 2:  o  Yes,
but only with respect to Employer Profit Sharing Contributions.

 

Option 3:  o  Yes,
but only with respect to Matching Contributions.

 

NOTE:  If no option is selected,
Option 1 will be deemed to be selected.

 

Part I.                ADP
and ACP Testing Alternatives

 

1.        Correction of Aggregate
Limit

 

If the Aggregate Limit described in Section
3.14(B) of the Plan is exceeded, the following adjustments will be made in
accordance with Section 3.14(B) of the plan (select one):

 

Option 1:  x The ACP of Highly Compensated Employees will be
reduced.

 

Option 2:  o The ADP of Highly Compensated Employees will be reduced.

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected.

 

2.        Current Year Testing
Method

 

21

 

The testing method used for purposes of the
ADP and ACP tests under this Plan shall be (select one);

 

Option 1:  o     Prior Year Teaching Method.

 

Initial Plan Year ADP

 

If this is not a successor Plan, then, for
the first Plan Year this Plan permits any Participant to make Elective
Deferrals, the ADP for Participants who are non-Highly Compensated Employees
shall be (select one):

 

Suboption
(a):  o      3%

 

Suboption
(b):  o     Such first Plan Year’s ADP.

 

NOTE:  If no suboption is
selected, Suboption (a) shall be deemed to be selected.

 

Initial Plan Year ACP

 

If this is not a successor Plan, then, for the
first Plan Year this Plan permits any Participant to make Nondeductible
Employee Contributions, provides for Matching Contributions or both, the ACP
for Participants who are non-Highly Compensated Employees shall be (select one):

 

Suboption
(a):  o      3%

 

Suboption
(b):  o     Such first Plan Year’s ADP.

 

NOTE:  If no suboption is
selected, Suboption (a) shall be deemed to be selected.

 

Option 2:  x     Current Year Testing Method.

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected. If Option 2 is selected, the current
year testing method must continue to be used unless (1) the Plan has been using
the current year testing method for the preceding five Plan Years, or, if
fewer, the number of Plan Years the Plan has been in existence; or (2) the Plan
otherwise meets one of the conditions specified in Notice 98-1 (or additional
guidance issued by the Internal Revenue Service (IRS)) for changing from the
current year testing method.

 

SECTION
FOUR:  VESTING AND FORFEITURES

Complete Parts A through H

 

Part A.               Vesting
Schedule For Employer Profit Sharing Contributions and Matching Contributions

 

22

 

A Participant shall become Vested in his or
her Individual Account derived from Employer Profit Sharing Contributions and
Matching Contributions, if applicable, made pursuant to Section Three of the
Adoption Agreement as follows (select one vesting
schedule for Employer Profit Sharing Contributions and one vesting schedule for
Matching Contributions, if applicable).

 

 

1.        Current Vesting Schedule

YEARS
OF VESTING SERVICE     VESTED PERCENTAGE

 

	
  Profit Sharing

  	
   

  	
  Option 1: o

  	
   

  	
  Option 2: o

  	
   

  	
  Option 3: x

  	
   

  	
  Option 4: o

  	
   

  	
  Option 5: o 

  	
   

  	
  Option 5:o  

  	
   

  
	
  Matching

  	
   

  	
  Option 1: o

  	
   

  	
  Option 2: o

  	
   

  	
  Option 3: x

  	
   

  	
  Option 4: o

  	
   

  	
  (Complete if Chosen)

  	
   

  	
  (Complete if Chosen)

  	
   

  
	
  Less than One

  	
   

  	
  0%

  	
   

  	
  0%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  %

  	
   

  	
  %

  	
   

  
	
  1

  	
   

  	
  0%

  	
   

  	
  0%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  %

  	
   

  	
  %

  	
   

  
	
  2

  	
   

  	
  0%

  	
   

  	
  20%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  %

  	
   

  	
  %

  	
   

  
	
  3

  	
   

  	
  0%

  	
   

  	
  40%

  	
   

  	
  100%

  	
   

  	
  20%

  	
   

  	
  % (not less than 20%)

  	
   

  	
  %(not less than 20%)

  	
   

  
	
  4

  	
   

  	
  0%

  	
   

  	
  60%

  	
   

  	
  100%

  	
   

  	
  40%

  	
   

  	
  % (not less than 40%)

  	
   

  	
  % (not less than 40%)

  	
   

  
	
  5

  	
   

  	
  100%

  	
   

  	
  80%

  	
   

  	
  100%

  	
   

  	
  60%

  	
   

  	
  % (not less than 60%)

  	
   

  	
  % (not less than 60%)

  	
   

  
	
  6

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  80%

  	
   

  	
  % (not less than 80%)

  	
   

  	
  % (not less than 80%)

  	
   

  
	
  7

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  % (not less than 100%)

  	
   

  	
  % (not less than 100%)

  	
   

  

NOTE:  If no option is selected,
Option 3 will be deemed to be selected for both Employer Profit Sharing
Contributions and Matching Contributions.

2.        Prior Vesting Schedule (Complete this Part A, item 2
only if the plan has been amended to include a less favorable vesting
schedule.)

YEARS
OF VESTING SERVICE     VESTED PERCENTAGE

 

	
  Profit Sharing

  	
   

  	
  Option 1: o

  	
   

  	
  Option 2: o

  	
   

  	
  Option 3: o

  	
   

  	
  Option 4: o

  	
   

  	
  Option 5: o

  	
   

  	
  Option 5:o

  	
   

  
	
  Matching

  	
   

  	
  Option 1: o

  	
   

  	
  Option 2: o

  	
   

  	
  Option 3: o

  	
   

  	
  Option 4: o

  	
   

  	
  (Complete if Chosen)

  	
   

  	
  (Complete if Chosen)

  	
   

  
	
  Less than One

  	
   

  	
  0%

  	
   

  	
  0%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  %

  	
   

  	
  %

  	
   

  
	
  1

  	
   

  	
  0%

  	
   

  	
  0%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  %

  	
   

  	
  %

  	
   

  
	
  2

  	
   

  	
  0%

  	
   

  	
  20%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  %

  	
   

  	
  %

  	
   

  
	
  3

  	
   

  	
  0%

  	
   

  	
  40%

  	
   

  	
  100%

  	
   

  	
  20%

  	
   

  	
  % (not less than 20%)

  	
   

  	
  % (not less than 20%)

  	
   

  
	
  4

  	
   

  	
  0%

  	
   

  	
  60%

  	
   

  	
  100%

  	
   

  	
  40%

  	
   

  	
  % (not less than 40%)

  	
   

  	
  % (not less than 40%)

  	
   

  
	
  5

  	
   

  	
  100%

  	
   

  	
  80%

  	
   

  	
  100%

  	
   

  	
  60%

  	
   

  	
  % (not less than 60%)

  	
   

  	
  % (not less than 60%)

  	
   

  
	
  6

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  80%

  	
   

  	
  % (not less than 80%)

  	
   

  	
  % (not less than 80%)

  	
   

  
	
  7

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  % (not less than 100%)

  	
   

  	
  % (not less than 100%)

  	
   

  

 

Part B.               Top-Heavy
Vesting Schedule.

 

Pursuant to Section 4.01(B) of the Plan, the
vesting schedule that will apply when this Plan is a Top-Heavy Plan (unless the
Plan’s regular vesting schedule provides for more rapid vesting) shall be (select one):

 

Option 1:  o  6
Year Graded.

 

Option 2:  o  3
Year Cliff.

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected for those contributions identified in
Part A above that are subject to a graded vesting schedule and Option 2 shall
be deemed to be selected for those contributions identified in Part A above
that are subject to a cliff vesting schedule.

 

Part C.               Hours
Required for Vesting Purposes

 

1.                          
Hours of Service (no more than 1,000) shall be
required to constitute a Year of Vesting Service.

 

23

 

2.                              
Hours of Service (no more than 500 but less than the number
specified in Section Four, Part C, item 1, above) must be exceeded
to avoid a Break in Vesting Service.

 

3.        For purposes of determining
Years of Vesting Service, an Employee shall be given credit for Hours of
Service with the following predecessor employer(s) (complete if
applicable) 

 

Part D.               Exclusion
of Certain Years of Vesting Service

 

All of an Employee’s Years of Vesting Service
with the Employer are counted to determine the Vested percentage in the
Participant’s Individual Account except (select any that apply):

 

o       Years of Vesting Service before the Employee
reaches age 18.

 

o       Years of Vesting Service before the Employer
maintained this Plan or a predecessor plan.

 

o       Years of Vesting Service during a period for
which the Employee made no mandatory Nondeductible Employee Contributions.

 

Part E.               Fully
Vested Under Certain Circumstances

 

Will a Participant be fully Vested under the
following circumstances (answer “Yes” or “No” to
each of the following items by selecting the appropriate box)?

 

	
   

  	
  1.

  	
  The
  Participant dies.

  	
   

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  The
  Participant incurs a Disability.

  	
   

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  The
  Participant satisfies the conditions for Early Retirement Age (if applicable)

  	
   

  	
  o Yes

  	
   

  	
  x No

  

 

Part F.               Allocation
of Forfeitures of Employer Profit Sharing Contributions

Forfeitures shall be (select one)

 

Option 1:  o         Allocated
to the Individual Accounts of the Participants specified below in the manner
described in Section 3.01(B) of the Plan (for Employer Profit Sharing
Contributions).

 

The Participants entitled to receive
allocations of such Forfeitures shall be (select one):

 

Suboption (a):  o      Qualifying Participants.

 

Suboption (b):  o      All Participants.

 

NOTE:  If no suboption is
selected, Suboption (a) shall be deemed to be selected.

 

Option 2:  x     Applied to reduce Employer Contributions.

 

24

 

NOTE:  If no option is selected,
Option 2 shall be deemed to be selected. Pursuant to Section 3.01(C) of the
Plan and notwithstanding the election made above, the Employer may first apply
forfeitures to either the payment of the Plan’s administrative expenses in
accordance with Section 7.0d of the Plan or the restoration of Participant’s
Individual Accounts pursuant to Section 4.01(C)(3) of the Plan.

 

Part G.               Allocation
of Forfeitures of Matching Contributions

 

Forfeitures of Matching Contributions shall
be (select one):

 

Option 1: 
o     Allocated,
after all other Forfeitures under the Plan, to each Participant’s Individual
Account in the ration which each Participant’s Compensation for the Plan Year
bears to the total Compensation of all Participants for such Plan Year.

 

The Participants entitled to receive
allocations of such Forfeitures shall be (select one):

 

Suboption (a):  o      Qualifying Contributing Participants.

 

Suboption (b):  o      Qualifying Participants.

 

Suboption (c):  o      All Participants.

 

NOTE:  If no suboption  is selected,
Suboption (a) shall be deemed to be selected.

 

Option 2:  x     Applied to reduce Employer Contributions.

 

NOTE:  If no option is selected,
Option 2 shall be deemed to be selected.Pursuant to Section 3.01(C) of the Plan
and notwithstanding the election made above, the Employer may first apply
forfeitures to either the payment of the Plan’s administrative expenses in
accordance with Section 7.04 of the Plan or the restoration of Participant’s
Individual Accounts pursuant to Section 4.01(C)(3) of the Plan.

 

Part H.               Allocation
of Forfeitures of Excess Aggregate Contributions

 

Forfeitures of Excess Aggregate Contributions
shall be (select one):

 

Option 1:  o     Allocated, after all other Forfeitures under the
Plan, to each Qualifying Contributing Participant’s Matching Contribution account
in the ratio which each Qualifying Contributing Compensation for the Plan Year
bears to the total Compensation of all Qualifying Contributing Participants for
each Plan Year. Such Forfeitures will not be allocated to the account of any
Highly Compensated Employee.

 

Option 2:  x     Applied to reduce Employer Contributions.

 

NOTE:  If no option is selected,
Option 2 shall be deemed to be selected.

 

25

 

SECTION
FIVE:  DISTRIBUTIONS AND LOANS

Complete Parts A through E

 

Part A.            Distributable Events (Answer each of the following items.)

 

1.        Termination of Employment
Before Normal Retirement Age

 

May a Participant who has not reached Normal
Retirement Age request a distribution from the Plan of that portion of the
Participant’s Individual Account attributable to the following types of
contributions upon Termination of Employment?

 

	
   

  	
  Employer Profit Sharing

  	
   

  	
   

  	
   

  
	
   

  	
  Contributions

  	
  x Yes

  	
  o No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Elective Deferrals

  	
  x Yes

  	
  o No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Matching Contributions

  	
   

  	
   

  	
   

  
	
   

  	
  (if applicable)

  	
  x Yes

  	
  o No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

2.        Disability

 

May a participant who has incurred a
Disability request a distribution from the Plan of that portion of the
Participant’s Individual Account attributable to the following types of
contributions?

 

	
   

  	
  Employer Profit Sharing

  	
   

  	
   

  	
   

  
	
   

  	
  Contributions

  	
  o Yes

  	
  x No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Elective Deferrals

  	
  o Yes

  	
  x No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Matching Contributions

  	
   

  	
   

  	
   

  
	
   

  	
  (if applicable)

  	
  o Yes

  	
  x No

  	
   

  

 

3.        Attainment of Normal
Retirement Age

 

May a Participant who has attained Normal
Retirement Age but has not incurred a Termination of Employment request a
distribution from the Plan of that portion of the Participant’s Individual
Account attributable to the following types of contributions?

 

	
   

  	
  Employer Profit Sharing

  	
   

  	
   

  	
   

  
	
   

  	
  Contributions

  	
  o Yes

  	
  x No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Elective Deferrals

  	
  o Yes

  	
  x No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Matching Contributions

  	
   

  	
   

  	
   

  
	
   

  	
  (if applicable)

  	
  o Yes

  	
  x No

  	
   

  

 

 

26

4.        Attainment of Age 59 1/2

 

May a Participant who has attained age 59 1/2
request a distribution from the Plan of that portion of the Participant’s
Individual Account attributable to the following types of contributions while
still employed by the Employer?

 

	
   

  	
  Employer Profit Sharing

  	
   

  	
   

  	
   

  
	
   

  	
  Contributions

  	
  x Yes

  	
  o No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  Yes, but only with respect to a Participant
  who is 100 percent Vested in his or her Individual Account attributable to
  Employer Profit Sharing Contributions.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Elective Deferrals

  	
  x Yes

  	
  o No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Matching Contributions

  	
   

  	
   

  	
   

  
	
   

  	
  (if applicable)

  	
  x Yes

  	
  o No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  Yes, but only with respect to a Participant
  who is 100 percent Vested in his or her Individual Account attributable to
  Matching Contributions.

  

 

5.        In-Service Withdrawals

 

a.        In general, may a
Participant request a distribution of that portion of the Participant’s
Individual Account attributable to the following types of contributions during
service pursuant to Section 5.01(A)(4) of Plan (complete
items a, b and c)?

 

Employer Profit Sharing Contributions

 

Option 1:  o     Yes

 

Option 2:  o     Yes, but only with respect to a Participant who is
100 percent Vested in his or her Individual Account attributable to Employer
Profit Sharing Contributions.

 

Option 3:  o     Yes, but only with respect to a Participant who
has participated in the Plan for             
or more years and has attained age             .

 

Option 4:  o     Yes, but only with respect to a Participant who is
100 percent Vested in his or her Employer Profit Sharing Contributions and has
participated in the Plan for             
or more years and has attained age             .

 

Option 5:  x     No.

 

Matching Contributions, (if
applicable)

 

Option 1:  o     Yes

 

27

 

Option 2:  o     Yes, but only with respect to a Participant who is
100 percent Vested in his or her Individual Account attributable to Matching
Contributions.

 

Option 3:  o     Yes, but only with respect to a Participant who
has participated in the Plan for             
or more years and has attained age             .

 

Option 4:  o     Yes, but only with respect to a Participant who is
100 percent Vested in his or her Matching Contributions and has participated in
the Plan for             
or more years and has attained age             .

 

Option 5:  x     No.

 

b.        One-Time In-Service
Withdrawal Option

 

Will the one-time in-service withdrawal
provisions described in Section 5.01(A)(7) of the Plan apply to the following
types of contributions?

 

Employer Profit Sharing Contributions

 

Option 1:  o     Yes

 

Option 2:  o     Yes, but only with respect to a Participant who is
100 percent Vested in his or her Individual Account attributable to Employer
Profit Sharing Contributions.

 

Option 3:  o     Yes, but only with respect to a Participant who
has participated in the Plan for             
or more years and has attained age             .

 

Option 4:  o     Yes, but only with respect to a Participant who is
100 percent Vested in his or her Employer Profit Sharing Contributions and has
participated in the Plan for             
or more years and has attained age             .

 

Option 5:  x     No.

 

If the answer is “Yes,”, specify the
percentage that a Participant may withdraw: 
            
percent.

 

Matching Contributions (if
applicable)

 

Option 1:  o     Yes

 

Option 2:  o     Yes, but only with respect to a Participant who is
100 percent Vested in his or her Individual Account attributable to Matching
Contributions.

 

28

 

Option 3:  o     Yes, but only with respect to a Participant who
has participated in the Plan for             
or more years and has attained age             .

 

Option 4:  o     Yes, but only with respect to a Participant who is
100 percent Vested in his or her Matching Contributions and has participated in
the Plan for             
or more years and has attained age             .

 

Option 5:  x     No.

 

If the answer is “Yes,”, specify the
percentage that a Participant may withdraw: 
            
percent.

 

c.        Hardship Withdrawals

 

May a Participant request a distribution of
that portion of the Participant’s Individual Account attributable to the
following types of contributions on account of hardship pursuant to Section
5.01(A)(5) of the Plan?

 

Employer Profit Sharing Contributions

 

Option 1:  o     Yes

 

Option 2:  o     Yes, but only with respect to a Participant who is
100 percent Vested in his or her Individual Account attributable to Employer
Profit Sharing Contributions.

 

Option 3:  o     Yes, but only with respect to a Participant who
has participated in the Plan for             
or more years and has attained age             .

 

Option 4:  o     Yes, but only with respect to
a Participant who is 100 percent Vested in his or her Employer Profit Sharing
Contributions and has participated in the Plan for             
or more years and has attained age             .

 

Option 5:  x     No.

 

NOTE:  If Option 1, 2, 3 or 4 is
selected, choose one of the following suboptions.

 

Suboption
(a):  o          The definition of
hardship described in Section 5.01(A)(5) of the Plan shall apply.

 

Suboption
(b):  o          The safe harbor
definition of hardship distribution described in 

 

29

 

Section 5.01(A)(6)(b) of the Plan shall
apply.

 

NOTE:  If no suboption  is selected,
Suboption (b) shall be deemed to be selected.

 

Matching Contributions (if
applicable)

 

Option 1:  o     Yes

 

Option 2:  o     Yes, but only with respect to a Participant who is
100 percent Vested in his or her Individual Account attributable to Matching
Contributions.

 

Option 3:  o     Yes, but only with respect to a Participant who
has participated in the Plan for             
or more years and has attained age             .

 

Option 4:  o     Yes, but only with respect to a Participant who is
100 percent Vested in his or her Matching Contributions and has participated in
the Plan for             
or more years and has attained age             .

 

Option 5:  x     No.

 

If the answer is “Yes,”, specify the
percentage that a Participant may withdraw: 
            
percent.

 

6.        Withdrawals of Rollover
Contributions

 

May an Employee request a distribution of his
or her rollover contributions at any time?

 

Option 1:  x     Yes

 

Option 2:  o     No.

 

7.        Withdrawals of Transfer
Contributions

 

May an Employee request a distribution of his
or her rollover contributions at any time (select one)?

 

Option 1:  x     Yes

 

Option 2:  o     No.

 

8.        Hardship Withdrawals of Elective
Deferrals

 

May an Employee request a distribution of his
or her rollover Elective Deferrals on account of hardship pursuant to Section
5.01(A)(6) of the Plan?

 

Option 1:  x     Yes

 

30

 

Option 2:  o     No.

 

NOTE:  If no option is selected for an
item, Option 1 shall be deemed to be selected for that time.

 

Part B.            Form of Distribution (Answer each of the following items)

 

1.        Lump Sum

 

May a Participant request a distribution of
the Vested portion of his or her Individual Account in a lump sum, subject to
Section 5.02(C) of the Plan?

 

Option 1:  x     Yes

 

Option 2:  o     No.

 

2.        Installment Payments

 

May a Participant request a distribution of
the Vested portion of his or her Individual Account over a period not to exceed
the life expectancy of the Participant or the joint and last survivor life
expectancy of the Participant and his or her designated Beneficiary, subject to
Section 5.02(C) of the Plan?

 

Option 1:  x     Yes

 

Option 2:  o     No.

 

3.        Annuity Contracts

 

May a Participant apply the Vested portion of
his or her Individual Account toward the purchase of an annuity contract,
subject to Section 5.02(C) of the Plan?

 

Option 1:  o     Yes

 

Option 2:  x     No.

 

4.        Involuntary Cashouts

 

An Eligible Rollover Distribution that exceeds
$1,000 but does not exceed $5,000 will be paid in the following manner pursuant
to Section 5.02 and 5.04 of the Plan (select one):

 

Option 1:  x     a single sum.

 

Option 2:  o     a Direct Rollover to an individual retirement
account.

 

NOTE:  Option 1 must be selected
for at least one of the items one through three in Part B above. If neither
option is selected for items one through three in Part B above, Option 1 shall
be deemed to have been selected for 

 

31

 

such item. If such item four is not
completed, Option 2 shall be deemed to have been selected for such item. If
this Plan is restating a Prior Plan, the forms of distribution under this Plan
must generally be at least as favorable as under the Prior Plan.

 

Part C.            Timing of
Distributions

 

1.        Termination of Employment

 

Where a Participant who is entitled to a
distribution under the Plan has a Termination of Employment (for reasons other
than death, Disability or attainment of Normal Retirement Age), distributions
shall commence (select one):

 

Option 1:  x     As soon as administratively feasible following the
date the Participant requests a distribution.

 

Option 2:  o     As soon as administratively feasible following the
close of the Plan Year within which the Participant requests a distribution.

 

Option 3:  o     As soon as administratively feasible following the
close of the Plan Year within which the Participant requests a distribution or
the Participant requests a distribution and incurs                
(not more than five) consecutive one-year
Breaks in Vesting Services, whichever is later.

 

NOTE:  If no option is selected,
Option 2 shall be deemed to be selected. A Participant’s request for a
distribution must be accompanied by his or her spouse’s consent pursuant to
Section 5.13 of the Plan.

 

2.        Death, Disability or
Attainment of Normal Retirement Age

 

Where a Participant dies, incurs a Disability
or attains Normal Retirement Age, and a distributable event has occurred,
distributions shall commence (select one)

 

Option 1:  x     As soon as administratively feasible following the
date the Participant (or Beneficiary of a deceased Participant) requests a
distribution.

 

Option 2:  o     As soon as administratively feasible following the
close of the Plan Year within which the Participant (or Beneficiary of a
deceased Participant) requests a distribution.

 

Option 3:  o     As soon as administratively feasible following the
close of the Plan Year within which the Participant (or Beneficiary of a
deceased Participant) requests a distribution or the Participant requests a
distribution and incurs             
(not more than five) consecutive one-year
Breaks in Vesting Services, whichever is later.

 

NOTE:  If no option is selected,
Option 2 shall be deemed to be selected.

 

Part D.            Retirement Equity Act
Safe Harbor

 

32

 

Will the safe harbor provisions of Section
5.13(E) of the Plan apply (select one)?

 

Option 1:  x     Yes

 

Option 2:  o     No.

 

Survivor
Annuity Percentage (Complete
only if Option 2 is selected.)

 

The survivor annuity portion of the Qualified
Joint and Survivor Annuity shall be a percentage equal to             
percent (at least 50 percent, but no more than 100 percent) of the amount paid
to the Participant prior to his or her death).

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected.

 

Part E.            Loans

 

May a Participant request a loan pursuant to
Section 5.19 of the Plan?

 

Option 1:  x     Yes

 

Option 2:  o     No.

 

NOTE:  If no option is selected,
Option 2 shall be deemed to be selected.

 

NOTE:  Section 411(d)(6) of the
Code prohibits the elimination of protected benefits. In general, protected
benefits include the timing of payout options. If the Plan is restating a Prior
Plan that permitted a distribution option described above that involves the
timing of a distribution, the selections must generally bet at least as
favorable as under the Prior Plan. Forms of distributions may be eliminated
under certain conditions, but generally only after advance notice has been
given to Participants as described in the Basic Plan Document.

 

SECTION
SIX:  DEFINITIONS

Complete Parts A through M

 

Part A.            Plan Year Means

 

Option 1:  x     The 12-consecutive month period which coincides
with the Adopting Employer’s Fiscal Year.

 

Option 2:  o     The calendar year.

 

Option
3:  o     The 52/53 week period ending
on the last             
(specify day of the week) nearest             
(specify month and day) of each year.

 

Option
4:  o     Other 12-consecutive month
period (Specify a 12-consecutive month period selected in a
uniform and nondiscriminatory manner.) 

                                                                                                                                                          .

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected.

 

33

 

If the initial Plan Year is less than 12
months (a short Plan Year) specify such Plan Year’s beginning and ending dates.

 

                                                                                                                                                          .

 

Part B.            Limitation Year Means

 

Option 1:  x     The Plan Year.

 

Option 2:  o     The calendar year.

 

Option
3:  o     Other 12-consecutive month
period (Specify a 12-consecutive month period selected in a
uniform and nondiscriminatory manner.)

 

                                                                                                                                                          .

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected.

 

Part C.            Measuring Period For
Vesting

 

Years of Vesting Service shall be measured
over the following 12-consecutive month period:

 

Option 1:  x     The Plan Year.

 

Option 2:  o     The 12-consecutive month period commencing with
the Employee’s Employment Commencement Date and each successive 12-month period
commencing on the anniversaries of the Employee’s Employment Commencement Date.

 

Option 3:  o     Other (specify)                                                                                         

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected.

 

Part D.            Hours of Service
Equivalencies

 

Service will
be determined on the basis of (select one):

 

Option 1:  o     Actual hours for which an Employee is paid or
entitled to payment.

 

Option 2:  o     Days worked. An Employee will be credited with 10
Hours of Service if under the definition of Hours of Service such Employee
would be credited with at least one Hour of Service during the day.

 

Option
3:  o     Weeks worked. An Employee
will be credited with 45 Hours of Service if under the definition of Hours of
Service such Employee would be credited with at least one Hour of Service
curing the week.

 

Option
4:  o     Semi-Monthly payroll periods
worked. An Employee will be credited with 95 Hours of Service if under the
definition of Hours of Service such Employee would be credited with at least
one Hour of Service during the semi-monthly payroll period.

 

34

 

Option 5:  o     Months worked. An Employee will be credited with
190 Hours of Service if under the definition of Hours of Service such Employee
would be credited with at least one Hour of Service during the month.

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected. This Section Six, Part D will not
apply if the elapsed time method of Section Six, Part E, Option 2 is selected.

 

Part E.            Elapsed Time Method

 

In lieu of tracking Hours of Service of
Employees, will the elapsed time method described under the definition of Hours
of Service be used (select one or more)?

 

Option 1:  o     No.

 

Option 2:  o     Yes.

 

Option 3:  x     Yes, for purposes of determining a Participant’s
Vested percentage.

 

Option 4:  x     Yes, for purposes of determining eligibility to
participate in the Plan.

 

Option 5:  o     Yes, for purposes of determining if a Participant
is a Qualifying Participant or Qualifying Contributing Participant and
therefore eligible to receive an Employer Contribution.

 

NOTE:  If no option is selected,
Option 1 shall be deemed to be selected.

 

Part F.            Compensation

 

1.        Employer Profit Sharing
Contributions

 

a.        General Definition

 

For purposes of Employer Profit Sharing
Contributions, Compensation will mean all of each Participant’s (select one):

 

Option 1: o  W-2 wages.

 

Option 2:
o 
Section 3401(a) wages.

 

Option 3:
x  415
safe-harbor compensation.

 

Option 4: o  Other                                                                                                                    

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected. Option 4 may not be selected if the Employer has selected an
integrated allocation formula for the Profit Sharing Contribution.

 

35

 

b.        Determination Period

 

For purposes
of Employer Profit Sharing Contributions, Compensation shall be determined over
the following applicable period (select one):

 

Option 1:
x  The
Plan Year.

 

Option 2: o  The calendar year ending with or within the
Plan Year.

 

Option 3:
o  The
consecutive 12-month period, beginning on (specify month and day)

                                                                                                   

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected.

 

c.        Inclusion of Elective
Deferrals

 

For purposes
of Employer Profit Sharing Contributions, Compensation shall include Employer
Contributions made pursuant to a salary reduction agreement which are not
includible in the gross income of the Employee under any of the following
sections of the Code (select “Yes” or “No” for
each of the following items).

 

	
   

  	
  Section 125 (cafeteria plans)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 132(f)(4) (qualified transportation fringe benefits)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 402(e)(3) (401(k) plans)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 402(h)(1)(B) (salary deferral SEP plans)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 403(b) (tax-sheltered annuity plans)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  

NOTE:
If no option is selected, “Yes” shall be deemed to
be selected for that Item.

 

d.        Exclusions From
Compensation

 

For purposes
of Employer Profit Sharing Contributions, Compensation shall not include the
following (select any that apply).

 

o 
Bonuses      o  Commissions

 

o 
Overtime      x  Other (specify)  See Attachment 

 

36

 

NOTE: No exclusions from Compensation are permitted if the integrated
allocation formula in Section Three, Part A, item 2 is selected.

 

2.        Elective Deferrals

 

a.        General Definition

 

For purposes of Elective Deferrals,
Compensation will mean all of each Participant’s (select one):

 

Option 1: o  W-2 wages.

 

Option 2:
o 
Section 3401(a) wages.

 

Option 3:
x  415
safe-harbor compensation.

 

Option 4: o  Other        

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected. Option 4 may not be selected if the Employer has selected an
integrated allocation formula for the Profit Sharing Contribution.

 

b.        Determination Period

 

For purposes
of Employer Profit Sharing Contributions, Compensation shall be determined over
the following applicable period (select one):

 

Option 1:
x  The
Plan Year.

 

Option 2: o  The calendar year ending with or within the
Plan Year.

 

Option 3:
o  The
consecutive 12-month period, beginning on (specify month and day)    

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected.

 

c.        Inclusion of Elective
Deferrals

 

For purposes
of Employer Profit Sharing Contributions, Compensation shall include Employer
Contributions made pursuant to a salary reduction agreement which are not
includible in the gross income of the Employee under any of the following
sections of the Code (select “Yes” or “No” for
each of the following items).

 

37

 

	
   

  	
  Section 125 (cafeteria plans)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 132(f)(4) (qualified transportation fringe benefits)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 402(e)(3) (401(k) plans)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 402(h)(1)(B) (salary deferral SEP plans)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 403(b) (tax-sheltered annuity plans)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  

NOTE:
If no option is selected, “Yes” shall be deemed to
be selected for that Item.

 

d.        Exclusions From
Compensation

 

For purposes
of Employer Profit Sharing Contributions, Compensation shall not include the
following (select any that apply).

 

o 
Bonuses      o  Commissions

 

o 
Overtime      x  Other (specify)  See Attachment 

 

NOTE: No exclusions from Compensation are permitted if the integrated
allocation formula in Section Three, Part A, item 2 is selected.

 

3.        Matching Contributions

 

a.        General Definition

 

For purposes of Elective Deferrals, Compensation
will mean all of each Participant’s (select one):

 

Option 1: o  W-2 wages.

 

Option 2:
o 
Section 3401(a) wages.

 

Option 3:
x  415
safe-harbor compensation.

 

Option 4: o  Other                                                                                                                      

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected. Option 4 may not be selected if the Employer has selected an
integrated allocation formula for the Profit Sharing Contribution.

 

b.        Determination Period

 

38

 

For purposes
of Employer Profit Sharing Contributions, Compensation shall be determined over
the following applicable period (select one):

 

Option 1:
x  The
Plan Year.

 

Option 2: o  The calendar year ending with or within the
Plan Year.

 

Option 3:
o  The
consecutive 12-month period, beginning on (specify month and day)                                                                    

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected.

 

c.        Inclusion of Elective
Deferrals

 

For purposes
of Employer Profit Sharing Contributions, Compensation shall include Employer
Contributions made pursuant to a salary reduction agreement which are not
includible in the gross income of the Employee under any of the following
sections of the Code (select “Yes” or “No” for
each of the following items).

 

	
   

  	
  Section 125 (cafeteria plans)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 132(f)(4) (qualified transportation fringe benefits)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 402(e)(3) (401(k) plans)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 402(h)(1)(B) (salary deferral SEP plans)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 403(b) (tax-sheltered annuity plans)

  	
  x Yes

  	
   

  	
  o No

  
	
   

  	
   

  	
   

  	
   

  	
   

  

NOTE:
If no option is selected, “Yes” shall be deemed to
be selected for that Item.

 

d.        Exclusions From
Compensation

 

For purposes
of Employer Profit Sharing Contributions, Compensation shall not include the
following (select any that apply).

 

o 
Bonuses      o  Commissions

 

o 
Overtime      x  Other (specify)  See Attachment 

 

39

 

NOTE: No exclusions from Compensation are permitted if the integrated
allocation formula in Section Three, Part A, item 2 is selected.

 

4.        Universal Compensation
Issues

 

a.        Pre-Entry Date
Compensation

 

1.        General Purposes

 

Unless a different definition of Compensation
is required by either the Code or ERISA, for the Plan Year in which an Employee
enters the Plan, the Employee’s Compensation which shall be taken into account
for purposes of the Plan (other than ADP or ACP testing) shall be (select one):

 

Option 1:  o     The Employee’s Compensation only from the Entry
Date, applicable to the particular type of contribution, on which the Employee
became a Participant in the Plan.

 

Option 2:  x     The Employee’s Compensation for the whole of such
Plan Year.

 

NOTE: If no option is selected, Option 1 shall be deemed to be selected.

 

2.        ADP and ECP Testing
Purposes

 

For the Plan Year in which an Employee enters
the Plan, the Employee’s Compensation which shall be taken into account for
purposes of ADP and ACP testing shall be (select one):

 

Option 1:  o     The Employee’s Compensation only from the Entry
Date, applicable to the particular type of contribution, on which the Employee
became a Participant in the Plan.

 

Option 2:  x     The Employee’s Compensation for the whole of such
Plan Year.

 

NOTE: If no option is selected, Option 1 shall be deemed to be selected.

 

Part G.            Normal Retirement Age

 

The Normal Retirement Age under the Plan
shall be (select and complete one):

 

Option 1:  x     Age 65 (not to exceed 65 or such
later age as may be allowed under Section 411(a)(8) of the Code).

 

Option 2:  o     The later of age             (not to exceed 65 or such later age as may be allowed under Section
411(a)(8) of the Code) or the

 

40

 

                  (not to exceed fifth) anniversary of the first day of the
first Plan Year in which the Participant commenced participation in the Plan.

 

NOTE: If no option is selected, Option 1 shall be deemed to be selected and
age 59 1/2 will be deemed to have been entered.

 

Part H.            Early Retirement Age

 

The Early Retirement Age under the Plan shall
be (select one):

 

Option 1:  x     An Early Retirement Age is not applicable under
the Plan.

 

Option 2:  o     A Participant satisfies the Plan’s Early
Retirement Age conditions by attaining age              and
completing                Years
of Vesting Service.

 

NOTE: If no option is selected, Option I shall be deemed to be selected.

 

Part I.             Valuation Date

 

The Plan valuation Date shall be (select one):

 

Option 1:  o     Daily.

 

Option 2:  o     The last day of the Plan Year and each other date
designated by the Plan Administrator which is selected in a uniform and
nondiscriminatory manner.

 

Option 3:  o     The last day of each Plan quarter.

 

Option 4:  o     The last day of each month.

 

Option 5:  x     Other (Specify one or more dates
that are selected in a uniform and nondiscriminatory manner, including the last
day of the Plan Year.)

 

Each business day the New York Stock Exchange
is open for trading.

 

 

NOTE: If no option is selected, Option 2 shall be deemed to be selected.

 

Part J.            Disability

 

For purposes of this Plan, Disability shall
mean (select one):

 

Option 1:  x     The inability to engage in any substantial,
gainful activity by reason of any medically determinable physical or mental
impairment that can be expected to result in death or which has lasted or can
be expected to last for a continuous period of not less than 12 months.

 

41

 

Option 2:  o      The
inability to engage inn any substantial, gainful activity in the Employee’s
trade or profession for which the Employee is best qualified through training
or experience.

 

NOTE: If no option is selected,
Option 1 shall be deemed to be selected.

 

Part K.                   Highly
Compensated Employee

 

1.             Top
Paid Group Election

 

For purposes
of determining who is a Highly Compensated Employee under the Plan, the top
paid group election shall apply (select one).

 

Option 1:  o         Yes.

 

Option 2:  x        No.

 

NOTE: If no option is selected,
Option 2 shall be deemed to be selected.

 

2.             Calendar
Year Data Election

 

For purposes
of determining who is a Highly Compensated Employee (other than a five-percent
owner) under the Plan, the calendar year date election shall apply (select one).

 

Option 1:  x        Yes.

 

Option 2:  o         No.

 

NOTE: If no option is selected,
Option 1 shall be deemed to be selected.

 

Part L.                   Required
Beginning Date

 

For purposes
of determining when minimum distributions must begin to be made to each
Participant, the Required Beginning Date shall mean (select one):

 

Option 1:  o      The
April 1 of the calendar year following the calendar year in which a Participant
attains age 70 1/2.

 

Option 2:  o      The
April 1 of the calendar year following the calendar year in which a Participant
attains age 70 1/2, except that distributions to a Participant (other than a
five-percent owner) with respect to benefits accrued after the later of the
adoption or effective date of the amendment to the Plan must commence by the later
of the April 1 of the calendar year following the calendar year in which the
Participant attains age 70 1/2 or retires.

 

Option 3:  x      The
later of the April 1 of the calendar year following the calendar year in which
a Participant attains age 70 1/2 or retires except that distributions to a
five-percent owner must commence by the April 1 of the calendar year following
the calendar year in which the Participant attains age 70 1/2.

 

NOTE: If no option is selected,
Option 3 shall be deemed to be selected.

 

42

 

NOTE: If Option 3 is selected,
choose one or more of the following suboptions. Suboption (c) must be selected
to the extent that there would otherwise be an elimination of a preretirement
age 70 1/2 distribution option for Employees older than those listed above.

 

Suboption (a)        x  Any Participant attaining age 70 1/2 in years
after 1995 may elect by the April 1 of the calendar year following the year in
which the Participant attained age 70 1/2 (or by December 31, 1997, in the case
of a Participant attaining age 70 1/2 in 1996) to defer distributions until the
calendar year following the calendar year in which the Participant retires. If
no such election is made, the Participant will begin receiving distributions by
the April 1 of the calendar year following the year in which the Participant
attained age 70 1/2 (or by December 31, 1997, in the case of a Participant
attaining age 70 1/2 in 1996).

 

Suboption (b)        x  Any Participant attaining age 70 1/2 in years
prior to 1997 may elect to stop distributions and recommence by the April 1 of
the calendar year following the year in which the Participant retires. There
shall be (select one):

 

(i)  o  a new annuity starting date upon
recommencement, or

 

(ii) x
no new annuity starting date upon recommencement.

 

NOTE: If neither item (i) nor
item (ii) is selected, item (ii) will be deemed to be selected.

 

Suboption (c)        x  The preretirement age 70 1/2 distribution
option is only eliminated with respect to an Employee who reaches age 70 1/2 in
or after a calendar year that begins after the later of December 31, 1998, or
the adoption date of the amendment. The preretirement age 70 1/2 distribution
option is an optional form of benefit under which benefits payable in a
particular distribution form (including any modifications that may be elected
after benefit commencement) commence at a time during the period that begins on
or after January 1 of the calendar year in which a Participant attains age 70
1/2 and ends April 1 of the immediately following calendar year.

 

NOTE: If no suboption(s) is
selected, Suboptions (a), (b) and (c) will be deemed to be selected.

 

Part M.                  Eligibility
Computation Period

 

An Employee’s
Eligibility Computation Periods subsequent to his or her initial Eligibility
Computation Period shall be (select one):

 

Option 1: x       The
12-consecutive month periods commencing on the anniversaries of his or her
Employment Commencement Date.

 

Option 2:
o        The Plan Year commencing with
the Plan Year beginning during his or her initial Eligibility Computation
Period.

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected.

 

43

 

SECTION SEVEN: MISCELLANEOUS
 Complete Parts A and B

 

Part A.                   Permissible
Investments

 

The assets of
the Plan shall be invested only in those investments described below (to be completed by the Prototype Sponsor):

 

	
   

  
	
   

  

 

Part B.                   Participant
Direction

 

1.             Authorization

 

Will a
Participant be responsible for directing the investment of his or her Plan
assets pursuant to Section 7.22(B) of the Plan (select one)?

 

Option 1: x  Yes.

 

Option 2:
o  No.

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected. Complete the remainder of Part B only if Option 1 is selected.

 

2.             Investment Options

 

A Participant
may direct the investment of his or her Plan assets among the following
investments (select one):

 

Option 1: x  Yes.

 

Option 2:
o  No.

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected.

 

3.             Accounts
Subject to Participant Direction

 

A Participant
shall be responsible for directing the following portions of his or her
Individual Account (select one):

 

	
   

  	
   

  	
  Option
  1:

  	
  o

  	
  Those
  accounts that the Plan Administrator may designate from time to time in a
  uniform and nondiscriminatory manner.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Option
  2:

  	
  x

  	
  The entire
  Individual Account.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Option 3:

  	
  o

  	
  The
  following accounts (select any that apply):

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  Elective
  Deferral account

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  Matching
  Contribution account

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  Employer Profit
  Sharing Contribution account

  

 

44

 

	
   

  	
   

  	
   

  	
   

  	
  o

  	
  Rollover
  contribution account

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  Transfer
  contribution account

  
	
   

  	
   

  	
   

  	
   

  	
  o     
  Other (Specify one or more of the accounts that may, in
  part, comprise a Participant’s Individual Account under this Plan.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected.

 

4.             Frequency of Investment Changes

 

A Participant
may make changes to the investments within his or her Individual Account with
the following frequency (select one):

 

Option 1: o  In accordance with uniform and
nondiscriminatory rules established by the Plan Administrator or other
Fiduciary.

 

Option 2:
x  Daily.

 

Option 3:
o 
Monthly.

 

Option 4: o  Quarterly.

 

Option 5: o  Other (Specify one
or more of the accounts that may, in part, comprise a Participant’s Individual
Account under this Plan.)

	
   

  
	
   

  

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected. The Plan’s Valuation Dates must be at least as often as the
frequency selected above.

 

SECTION EIGHT: TRUSTEE AND CUSTODIAN
 Complete Parts A and B (as
applicable)

 

Part A.                   Custodian (This Part A must be completed unless a Trustee is named in Part B,
below.)

 

	
  Financial Organization

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Type Name

  	
   

  	
   

  	
  Title

  	
   

  
								

 

Part B.                   Trustee (This Part B must be completed unless the Plan covers one or more
Self-Employed Individuals or satisfies another exception under Section 403(b)
of ERISA. Select one.)

 

45

 

Option 1: x  Financial Organization as Trustee

 

Option 2:
o 
Individual Trustee(s)

 

The Trustee of
this Plan shall be a: x
Directed Trusteeo Discretionary
Trustee

 

	
  Name of Trustee

  	
  Vanguard Fiduciary Trust Company

  
	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
  P.O. Box 2900, Valley Forge, PA 19482

  
	
   

  	
   

  	
   

  	
   

  
	
  Telephone

  	
  (800) 523-3188

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
  /s/ Dennis Simmons

  	
   

  	
  Title 

  	
  Dennis Simmons, Principal

  
							

 

	
  Name of Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telephone

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  	
  Title 

  	
   

  
							

 

	
  Name of Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telephone

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  	
  Title 

  	
   

  
							

 

	
  Name of Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telephone

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  	
  Title 

  	
   

  
							

 

SECTION NINE: EMPLOYER SIGNATURE
 Important: Please read
before signing

 

Prototype Sponsor

 

	
  Name of Prototype Sponsor

  	
  Vanguard Fiduciary Trust Company

  
	
   

  	
   

  
	
  Address

  	
  P.O. Box 2900, Valley Forge, PA 19482

  
			

 

46

 

	
  Telephone

  	
  (800) 523-1188

  

 

o            Check
here and provide the applicable information below if someone other than the
Adopting Employer will be the Plan Administrator.

 

	
  Name of Adopting Employer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  City

  	
   

  	
   

  	
  State

  	
   

  	
   

  	
  Zip

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature of Plan Administrator

  	
   

  	
   

  	
  Date Signed

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type Name

  	
   

  
																		

 

x Check here if there is
an attachment(s) that applies to this Plan (If this box is checked,
please describe the attachment(s) below.)

 

Plan
Clarification  

 

I am an authorized representative of the Adopting Employer named above
and I state the following:

 

1.             I acknowledge that I
have relied upon my own advisors regarding the completion of this Adoption
Agreement and the legal tax implications of adopting this Plan;

 

2.             I understand that my
failure to properly complete this Adoption Agreement may result in
disqualification of the Plan;

 

3.             I understand that the
Prototype Sponsor will inform me of any amendments made to the Plan and will
notify me should it discontinue or abandon the Plan; and

 

4.             I have received a
copy of this Adoption Agreement, the corresponding basic Plan Document and, if
applicable, any separate trust agreement used in lieu of the trust agreement
contained in the Basic Plan Document.

 

	
  Signature of Adopting Employer

  	
   

  	
   

  	
  Date Signed

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Type Name

  	
   

  	
   

  	
  Title

  	
   

  
							

 

NOTE:  The Adopting Employer may rely on an opinion letter issued by the
Internal Revenue Service as evidence that the Plan is qualified under Section
401 of the Code only to the extent provided in Announcement 2001-77, 2001-30
I.R.B. The Employer may not rely on the opinion letter in certain other
circumstances or with respect to certain qualification requirements, which are specified
in the opinion letter issued with respect to the Plan and in Announcement
2001-77. In order to have reliance in such circumstances or with respect to
such qualification requirements, application for a determination letter must be
made in Employee Plans Determinations of the Internal Revenue Service. This
Adoption Agreement may be used only in conjunction with Basic Plan Document #01.
The signature of the Adopting Employer in this 

 

47

 

Section
Nine shall apply to Section 10 of this Adoption Agreement if the Employer is
restating its Plan to comply with Revenue Procedure 2000-20.

 

48

 

Attachment for the

Talecris Biotherapeutics, Inc. Employee Savings Plan

To the Vanguard Comprehensive 401(k) Plan

Nonstandardized Safe Harbor Adoption Agreement

(Effective as of April 1, 2005)

 

1.             Section Six, Part
F.1.d. of the Adoption Agreement regarding the exclusion of certain forms of
income from the definition of Compensation shall mean performance pay,
severance pay, long-term incentive pay, attendance, safety and special awards,
noncash compensation, foreign service premiums and tax equalization payments.

 

2.             Section Six, Part
F.2.d. of the Adoption Agreement regarding the exclusion of certain forms of
income from the definition of Compensation shall mean performance pay,
severance pay, long-term incentive pay, attendance, safety and special awards,
noncash compensation, foreign service premiums and tax equalization payments.

 

3.             Section Six, Part
F.3.d. of the Adoption Agreement regarding the exclusion of certain forms of
income from the definition of Compensation shall mean performance pay,
severance pay, long-term incentive pay, attendance, safety and special awards,
noncash compensation, foreign service premiums and tax equalization payments.

 

49

 

Qualified Retirement Plan

EGTRRA Model Amendment Kit

 

For use with Vanguard’s

401(k) Plans

 

 

INSTRUCTIONS

 

•              Complete
and sign the Vanguard Adoption Agreement Amendment and return to Vanguard.

 

•              Review
the Vanguard Basic Plan Document Amendment and file with your other qualified
plan documents.

 

50

 

Vanguard Adoption

Agreement Amendment

 

This amendment
of the Plan (hereinafter referred to as “the Amendment”) is comprised of this
Adoption agreement Amendment and the corresponding Basic Plan Document
Amendment and is adopted to reflect certain provisions of the Economic Growth
and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). The Amendment is intended
as good faith compliance with the requirements of EGTRRA and is to be construed
in accordance with EGTRRA and guidance issued thereunder. Except as otherwise
provided, the Amendment shall be effective as of the first day of the first
Plan Year beginning after December 31, 2001. The Amendment shall supersede the
provisions of the Plan to the extent those provisions are inconsistent with the
provisions of the Amendment.

 

Employer Information

 

	
  Name of Adopting Employer

  	
  Talecris Biotherapeutics

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  79 TW Alexander Drive, 4101 Research Commons

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  City

  	
  Research Triangle Park

  	
   

  	
  State

  	
  NC

  	
   

  	
  Zip

  	
  27709

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone

  	
   

  	
   

  	
  Adopting Employer’s Federal Tax I.D. Number

  	
   

  	
  32-2032472

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name of Plan

  	
  Talecris Biotherapeutics, Inc. Employee Savings Plan

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Plan Sequence Number

  	
  001

  	
  Adopting Employer’s Fiscal Year End

  	
   

  	
  12/31

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vanguard Account Number

  	
   

  	
  097390

  
																							

 

NOTE:  Section numbers used below
correspond to the Adoption Agreement sections to which the Amendment provisions
relate. 

 

51

 

SECTION THREE: CONTRIBUTIONS

 

Part A.                   Direct
Rollovers

 

The plan will
accept Direct Rollovers of Eligible Rollover Distributions from (select any that apply)

 

1.           o              A
qualified plan described in Section 401(a) or 403(a) of the Code, excluding
Nondeductible Employee Contributions.

 

2.           x             A qualified plan
described in Section 401(a) or 403(a) of the Code, including Nondeductible
Employee Contributions.

 

3.           x             An annuity contract
described in Section 403(b) of the Code, excluding Nondeductible Employee
Contributions.

 

4.           x             An eligible plan
under Section 457(b) of the Code which is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state.

 

Part B.                   Indirect
Rollovers

 

The Plan will
accept indirect rollovers of Eligible Rollover Distributions form (select any that apply)

 

1.           x             A qualified plan
described in Section 401(a) or 403(a) of the Code.

 

2.           x             An annuity contract
described in Section 403(b) of the Code.

 

3.           x             An eligible plan
under Section 457(b) of the Code which is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state.

 

Part C.                   Rollover
Contributions from IRAs

 

Will the Plan
accept rollover contributions of the portion of a distribution from an individual
retirement account or annuity described in Section 408(a) or 408(b) of the Code
that is eligible to be rolled over and would otherwise be includible in gross
income (select one)?

 

Option 1: o  Yes.

 

Option 2: x  No.

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected.

 

52

 

Part D.                   Effective Date
of Direct Rollover, Indirect Rollover, and Rollover Contributions from IRAs (complete if one or more boxes are selected in either Parts A or B above
or if Option 1 is selected in Part C above)

 

Section 3,
Part B of the Basic Plan Document Amendment shall be effective 04/01/05 (enter a date no earlier than January 1, 2002).

 

Part E.                    Modification
of Top-Heavy Rules

 

The Minimum
Benefits for Employees Also Covered Under Another Plan

The Employer
should describe below the extent, if any, to which the top-heavy minimum
benefit requirement of Section 416(c) of the Code and Section 3.01(E) of the
Plan shall be met in another plan. This should include the name of the other
plan, the minimum benefit that will be provided under such other plan, and the
Employees who will receive the minimum benefit under such other plan.

	
  N/A

  
	
   

  
	
   

  

 

Part F.                    Catch-up
Contributions

 

Will Employees
be permitted to make catch-up contributions pursuant to Section 3, Part F of
the Basic Plan Document Amendment (section one)?

 

Option 1: x  Yes, after 04/01/2005 (enter
December 31, 2001 or a later date)

 

Option 2:
o  No.

 

NOTE:
If no option is selected, Option 1 shall be deemed to
be selected.

 

Part G.                   Matching
Contributions and Catch-up Contributions

 

Will Matching
Contributions be made, in accordance with the Matching Contribution formula
specified in the Adoption Agreement, with regard to Catch-up Contributions (select one)?

 

Option 1: o  Yes.

 

Option 2: x  No.

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected.

 

Part II.                   Suspension of
Elective Deferrals Following Hardship Distribution

 

The following
transition rule shall apply to Participants who received distributions of
Elective Deferrals during the 2001 calendar year (select one).

 

53

 

Option 1: x  A Participant who receives a distribution of
Elective Deferrals in calendar year 2001 on account of hardship shall be
prohibited from making Elective Deferrals and Nondeductible Employee
Contributions under this and all other plans of the Employer for six months
after receipt of the distribution of until January 1, 2002, if later.

 

Option 2:
o  A
Participant who receives a distribution of Elective Deferrals in calendar year
2001 on account of hardship shall be prohibited from making Elective Deferrals
and Nondeductible Employee Contributions under this and all other plans of the
Employer for the period specified in the provisions of the Plan relating to
suspension of Elective Deferrals that were in effect prior to this Amendment.

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected.

 

SECTION FOUR: VESTING AND FORFEITURES

 

Part A.                   Participants Subject
to EGTRRA Vesting Schedules

 

The provisions
of Section Four of the Basic Plan Document Amendment shall apply to

 

Option 1: x  all Participants with Individual Accounts
derived from Matching Contributions

 

Option 2:
o  those
Participants with Individual Accounts derived from Matching Contributions who
complete an Hour of Service under the Plan in a Plan Year beginning after
December 31, 2001.

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected.

 

Part B.                   Application to
Matching Contributions

 

The provisions
of Section Four of the Basic Plan Document Amendment shall apply to

 

Option 1: x  all Matching Contributions in the Participant’s
Individual Accounts.

 

Option 2:
o  only
Matching Contributions in the Participant’s Individual Accounts for Plan Years
beginning after December 31, 2001.

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected.

 

54

 

Part C.                   Vesting
Schedule for Matching Contributions

 

A Participant
shall become Vested in his or her Individual Account derived from Matching
Contributions, if applicable, made pursuant to Section Three of the Adoption
Agreement as follows. (Select one vesting
schedule for Matching Contributions, if applicable.)

 

	
  YEARS OF

  	
   

  	
  VESTED PERCENTAGE

  	
   

  
	
  VESTING SERVICE

  	
   

  	
  Option 1 o

  	
   

  	
  Option 2 o

  	
   

  	
  Option 3 x

  	
   

  	
  Option 4 o

  	
   

  	
  (Complete if Chosen)

  	
   

  
	
  Less than One

  	
   

  	
  0%

  	
   

  	
  0%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  0%

  	
   

  	
  0%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  0%

  	
   

  	
  20%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  (not less than 20%)

  	
   

  
	
  3

  	
   

  	
  100%

  	
   

  	
  40%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  (not less than 40%)

  	
   

  
	
  4

  	
   

  	
  100%

  	
   

  	
  60%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  (not less than 60%)

  	
   

  
	
  5

  	
   

  	
  100%

  	
   

  	
  80%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  (not less than 80%)

  	
   

  
	
  6

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  (not less than 100%)

  	
   

  
	
  7

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  (not less than 100%)

  	
   

  

 

NOTE: If no option is selected,
Option 3 shall be deemed to be selected.

 

SECTION FIVE: DISTRIBUTIONS AND LOANS

 

Part A.                   Rollovers
Disregarded in Involuntary Cash-Outs.

 

Will rollover
contributions be included in determining the value of a Participant’s Vested
Individual Account for purposes of the Plan’s involuntary cash-out rules (select one)?

 

Option 1: x  Yes.

 

Option 2:
o  No.

 

If the
Employer selected Option 2, the election shall apply with respect to
distributions made after                  (enter a date no earlier than December 31, 2001).

 

NOTE:
If no option is selected, Option 2 shall be deemed
to be selected

 

Part B.                   Distribution
Upon Severance From Employment

 

Will Section
5, Part B of the Basic Plan Document Amendment apply?

 

Option 1: o  Yes, regardless of when the severance from
employment occurred.

 

Option 2: x  Yes, for severances from employment
occurring (enter date) after 04/01/2005.

 

Option 3: o  No.

 

55

 

If either
Option 1 or Option 2 is selected, such provisions shall apply to distributions
occurring after 04/01/2005  (enter a date
no earlier than December 31, 2001.)

 

NOTE:
If no option is selected, Option 1 shall be deemed
to be selected.

 

Signature of Trustee(s)

 

	
  Name of Trustee

  	
  Vanguard Fiduciary Trust Company

  
	
   

  	
   

  
	
  Address

  	
  P.O. Box 2900, Valley Forge, PA 19482

  
	
   

  	
   

  
	
  Telephone

  	
  (800) 523-1188

  
	
   

  	
   

  
	
  Signature

  	
  /s/ Dennis Simmons

  	
   

  	
  Title

  	
  Dennis Simmons, Principal

  

 

Signature of Employer

 

1.             I acknowledge that I
have relied upon my own advisors regarding the completion of this Amendment and
the legal and tax implications of amending this Plan;

 

2.             I understand that my
failure to properly complete this Amendment may result in disqualification of
the Plan; and

 

3.             I have received a
copy of this Amendment.

 

	
  Signature of Adopting Employer

  	
   

  	
   

  	
  Date Signed

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Type Name

  	
   

  	
   

  	
  Title

  	
   

  
							

 

NOTE: In order to obtain
reliance with respect to plan qualification, the Employer may be required to
apply to the Employee Plans Determinations of the Internal Revenue Service for
a determination letter.

 

56

 

Vanguard

Basic Plan Document

Amendment

 

This amendment
of the Plan (hereinafter referred to as “the Amendment”) is comprised of this
Basic Plan Document Amendment and the corresponding Adoption Agreement
Amendment and is adopted to reflect certain provisions of the Economic Growth
and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). The Amendment is intended
as good faith compliance with the requirements of EGTRRA and is to be construed
in accordance with EGTRRA and guidance issued thereunder. Except as otherwise
provided, the Amendment shall be effective as of the first day of the first
Plan Year beginning after December 31, 2001. The Amendment shall supersede the
provisions of the Planto the extent those provisions are inconsistent with the
provisions of the Amendment.

 

Note: Section numbers used below correspond to the Basic Plan Document
Sections to which the Amendment provisions related.

 

DEFINITIONS

 

Catch-up Contributions: Catch-up Contributions
means Elective Deferrals made to the Plan pursuant to Section 3 of the
Amendment, Section 414(v) of the Code and the applicable regulations and other
guidance of general applicability issued thereunder. Unless otherwise indicated
in the Adoption Agreement Amendment, Catch-up Contributions shall be subject to
the Matching Contribution formula specified in the Adoption Agreement.

 

Compensation: The annual Compensation of each
Participant taken into account in determining allocations, shall not exceed
$200,000, as adjusted for cost-of-living increases in accordance with Section
401(a)(17)(B) of the Code. Annual Compensation means Compensation paid during
the Plan Year or such other consecutive 12-month period over which Compensation
is otherwise determined under the Plan (the Determination Period). The cost-of-living
adjustment in effect for a calendar year applies to annual Compensation for the
Determination Period that begins with or within such calendar year.

 

Effective
Date: This section shall be effective for any Plan Year beginning after
December 31, 2001.

 

Key Employee: Key Employee means any Employee
or former Employee (including any deceased Employee) who at any time during the
Plan Year that includes the Determination Date was an officer of the Employer
having annual Compensation greater than $130,000 (as adjusted under Section
416(i)(1) of the Code for Plan Years beginning after December 31, 2002), a
five-percent owner of the Employer, or a one-percent owner of the Employer
having annual Compensation of more than $150,000. For this purpose, annual Compensation
means Compensation within the meaning of Section 415(c)(3) of the Code. The
determination of who is a Key Employee will be made in accordance with Section
416(i)(1) of the Code and the applicable regulations and other guidance of
general applicability issued thereunder.

 

57

 

Effective
Date: This section shall apply for purposes of determining whether the Plan is
a Top-Heavy Plan under Section 416(g) of the Code for Plan Years beginning
after December 31, 2001, and whether the Plan satisfies the minimum benefit
requirements of Section 416(c) of the Code for such years. This section amends
Section 7.19 of the Plan.

 

Eligible Retirement Plan: For purposes of the
Direct Rollover provisions of the Plan, the definition of an Eligible
Retirement Plan shall only mean an annuity contract described in Section 403(b)
of the Code and an eligible plan under Section 457(b) of the Code which is
maintained by a state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision of a state and which agrees
to separately account for amounts transferred into such plan from this Plan. The
definition of Eligible Retirement Plan shall also apply in the case of a
distribution to a Surviving Spouse, or to a Spouse or former Spouse who is the
Alternate Payee under  Qualified Domestic
Relations Order, as defined in Section 414(p) of the Code.

Effective Date: This section shall apply to distributions made after December
31, 2001.

 

Eligible Rollover Distributions: For purposes
of the Direct Rollover provisions of the Plan, any amount that is distributed
on account of hardship shall not be included in the definition of an Eligible
Rollover Distribution and the Recipient may not elect to have any portion of
such a distribution paid directly to an Eligible Retirement Plan.

 

For purposes
of the Direct Rollover provisions of the Plan, a portion of a distribution
shall not fail to be an Eligible Rollover Distribution merely because the
portion consists of Nondeductible Employee Contributions which are not
includible in gross income. However, such portion may be transferred only to an
individual retirement account or annuity described in Section 408(a) or (b) of
the Code, or to a qualified defined contribution plan described in Section
401(a) or 403(a) of the Code that agrees to separately account for amounts so
transferred, including separately accounting for the portion of such
distribution which is includible in gross income and the portion of such
distribution which is not so includible.

 

Effective
Date: This section shall apply to distributions made after December 31, 2001.

 

SECTION 3: CONTRIBUTIONS

 

Part A.                   Limitations on
Contributions:

Except to the extent permitted under Section 3 of the Amendment and Section
414(v) of the Code, if applicable, the Annual Addition that may be contributed
or allocated to a Participant’s Individual Account under the Plan for any
Limitation Year shall not exceed the lesser of:

 

(a)           $40,000, as adjusted
for increases in the cost-of-living under Section 415(d) of the Code, or

 

(b)           100 percent of the
Participant’s Compensation, within the meaning of Section 415(c)(3) of the
Code, for the Limitation Year.

 

58

 

The compensation
limit referred to in (b) shall not apply to any contribution for medical
benefits after separation from service (within the meaning of Section 401(h) or
Section 419A(f)(2) of the Code) which is otherwise treated as an Annual
Addition.

 

Effective
Date: This section shall be effective for Limitation Years beginning after
December 31, 2001.

 

Part B.                   Rollovers From
Other Plans:

If rollover contributions are otherwise permitted under the Plan, the Plan
will accept Participant rollover contributions and/or Direct Rollovers of
distributions made after December 31, 2001, from the types of plans specified
in the Adoption Agreement Amendment.

 

Applicability
and Effective Date: This section shall apply if elected by the Employer in the
Adoption Agreement Amendment and shall be effective as specified in the
Adoption Agreement Amendment.

 

Part C.                   Repeal of
Multiple Use Test:

The multiple use test described in Treasury Regulation Section 1.401(m)-2
and Section 3.14(B)(2) of the Plan shall not apply.

 

Effective
Date: This section shall apply for Plan Years beginning after December 31,
2001.

 

Part D.                   Effective
Deferrals: General Contribution Limitation:

No Participant shall be permitted to have Elective Deferrals made under
this Plan, or any other qualified plan maintained by the Employer during any
taxable year, in excess of the dollar limitation contained in Section 402(g) of
the Code in effect for such taxable year, except to the extent permitted under
Section 3 of the Amendment and Section 414(v) of the Code, if applicable.

 

Part E.                    SIMPLE 401(k) Elective Deferrals: Contribution Limitation:

Except to the extent permitted under Section 3, Part F of the
Adoption Agreement and Section 414(v) of the Code, if applicable, the maximum
Elective Deferral contribution that can be made to this Plan is the amount
determined under Section 408(p)(2)(A)(ii) of the Code for the Year.

 

Part F.                    Catch-up Contributions:

All Employees who are eligible to make Elective Deferrals under this
Plan and who have attained age 50 before the close of the Plan Year shall be
eligible to make Catch-up Contributions in accordance with, and subject to the
limitations of, Section 414(v) of the Code. Such Catch-up Contributions shall
not be taken into account for purposes of the provisions of the Plan Implementing
the required limitations of Section 402(g) and 415 of the Code. 

 

59

 

The Plan shall
not be treated as failing to satisfy the provisions of the Plan implementing
the requirements of Section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416
of the Code, as applicable, by reason of the making of such Catch-up
Contributions.

 

Applicability
and Effective Date: This section shall apply if
elected by the Employer in the Adoption Agreement Amendment and shall be
effective as specified in the Adoption Agreement Amendment.

 

Part G.                   Suspension
Period Following Hardship Distribution:

A Participant who receives a distribution of Elective Deferrals after
December 31, 2001, on account of hardship shall be prohibited from making
Elective Deferrals and Nondeductible Employee Contributions under this and all
other plans of the Employer for six months after receipt of the distribution. A
Participant who receives a distribution of Elective Deferrals in calendar year
2001 on account of hardship shall be prohibited from making Elective Deferrals
and Nondeductible Employee Contributions under this and all other plans of the
Employer for the period specified by the Employer in the Adoption Agreement
Amendment.

 

SECTION 4: VESTING AND FORFEITURES

 

Part A.                   Vesting of
Matching Contributions:

A Participant’s Individual Account derived from Matching Contributions
shall vest as provided by the Employer in the Adoption Agreement Amendment. If
the vesting schedule for Matching Contributions in either Option two or Option
four of the Adoption Agreement Amendment is elected, the election is Section
7.06(D) of the Plan shall apply.

 

Effective
Date: This section shall apply to Participants with accrued benefits derived
from Matching Contributions who complete and Hour of Service under the Plan in
a Plan Year beginning after December 31, 2001. If elected by the Employer in
the Adoption Agreement Amendment, this section shall also apply to all other
Participants with accrued benefits derived from Employer Matching
Contributions.

 

Part B.                   Rollovers
Disregarded in Involuntary Cash-Outs:

For purposes of Section 4.01(C) of the Plan, the value of a Participant’s
Vested Individual Account shall be determined without regard to that portion of
the Individual Account that is attributable to rollover contributions (and
earnings allocable thereto) within the meaning of Sections 402(c), 403(a)(4),

 

60

 

403(b)(8),
408(d)(3)(A)(ii), and 457(c)(16) of the Code. If the value of the Participant’s
Vested Individual Account as so determined is $5,000 or less, the Plan shall
immediately distribute the Participant’s entire Vested Individual Account.

 

Applicability
and Effective Date: This section shall apply if elected by the Employer in the
Adoption Agreement Amendment and shall be effective as specified in the
Adoption Agreement Amendment.

 

SECTION 5: DISTRIBUTIONS AND LOANS TO PARTICIPANTS

 

Part A.                   Plan Loans for
Owner-Employees and Shareholder-Employees:

 

Effective Date:
This section shall be effective for Plan loans made after December 31, 2001.

 

Part B.                   Distribution
Upon Severance From Employment:

A Participant’s Elective Deferrals; Qualified Nonelective Contributions,
Qualified Matching Contributions, and earnings attributable to these
contributions shall be distributed on account of the Participant’s severance
from employment. However, such a distribution shall be subject to the other
provisions of the Plan regarding distributions, other than provisions that
require a separation from service before such amounts may be distributed.

 

Applicability
and Effective Date: This section shall apply if elected by the Employer in the
Adoption Agreement Amendment and shall apply for distributions and severances
from employment occurring after the dates specified in the Adoption Agreement
Amendment.

 

SECTION 7: MISCELLANEOUS

 

Part A.                   Top-Heavy
Rules: Present Value

This paragraph shall apply for purposes of determining the Present Values
of accrued benefits and the amounts of account balances of Employees as of the
Determination Date. The Present Values of accrued benefits and the amounts of
account balances of an Employee as of the Determination Date shall be increased
by the distributions made with respect to the Employee under the Plan and any
plan aggregated with the Plan under Section 416(g)(2) of the Code during the
one-year period ending on the Determination Date. The preceding sentence shall
also apply to distributions under a terminated plan which had it not been
terminated, would have been aggregated with the Plan under Section
416(g)(2)(A)(i) of the Code. In case of a distribution made for a reason other
than the separation from service, death, or Disability, this provision shall be
applied by substituting “five-year period” for “one-year 

 

61

 

period.”  The accrued benefits and amounts of any
individual who has not performed services for the Employer during the one-year
period ending on the Determination Date shall not be taken into account.

 

Matching
Contributions shall be taken into account for purposes of satisfying the
minimum contribution requirements of Section 416(c)(2) of the Code and the Plan.
The preceding sentence shall apply with respect to Matching Contributions under
the Plan or, if the Plan provides that the minimum contribution requirement
shall be met in another plan, such other plan. Matching Contributions that are
used to satisfy the minimum contribution requirements shall be treated as
Matching Contributions for purposes of the Average Contribution Percentage test
and other requirements of Section 401(m) of the Code.

 

The Employer
may provide in the Adoption Agreement that the minimum benefit requirement
shall be met in another plan (including another plan that consists solely of a
cash or deferred arrangement which meets the requirement of Section 401(k)(12)
of the Code and Matching Contributions with respect to which the requirements
of Section 401(m)(11) of the Code are met.

 

Effective
Date: This Section shall apply for purposes of determining whether the Plan is
a Top-Heavy Plan under Section 416(g) of the Code for Plan Years beginning
after December 31, 2001, and whether the Plan satisfies the minimum benefit
requirements of Section 416(c) of the Code for such years. This section amends
Section 7.29 of the Plan.

 

Part B.                   Top-Heavy
Rules: Safe Harbour CODA

The top-heavy requirements of Section 416 of the Code and Section 7.19 of
the Plan shall not apply in any year in which the Plan consists solely of a
cash or deferred arrangement which meets the requirements of Section 401(k)(12)
of the Code and Matching Contributions with respect to which the requirements
of Section 401(m)(11) of the Code are met.

 

Effective
Date: This section shall apply for years beginning after December 31, 2001.

 

62

 

	
  VANGUARD
  FIDUCIARY TRUST CO.

  	
   

  	
  Contact
  Person:

  	
  Ms.
  Arrington 50-00197

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  P
  O BOX 2600

  	
   

  	
  Telephone
  Number:

  	
  (202)
  283-8811

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VALLEY
  FORGE, PA 19482

  	
   

  	
  In
  Reference to: T:EP:RA:T3

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:
  08/22/2001

  	
   

  	
   

  
						

 

Dear
Applicant:

 

In our
opinion, the form of the plan identified above is acceptable under section 401
of the Internal Revenue Code for use by employers for the benefit of their
employees. This opinion relates only to the acceptability of the form of the
plan under the Internal Revenue Code. It is not an opinion of the effect of
other Federal or local statutes.

 

You must
furnish a copy of this letter to each employer who adopts this plan. You are
also required to send a copy of the approved form of the plan, any approved
amendments and related documents to Employee Plans Determinations in Cincinnati
at the address specified in section 9.11 of Rev. Proc. 2000-20, 2000-6 I.R.B.
553.

 

This letter
considers the changes in qualifications requirements made by the Uruguay Round
Agreements Act (GATT), Pub. L. 103-465, the Small Business Job Protection Act
of 1996; Pub. L. 104-188, the Uniformed Services Employment and Reemployment
Rights Act of 1994, Pub. L. 103-353, the Taxpayer Relief Act of 1997, Pub. L.
105-34, the Internal Revenue Service Restructuring and Reform Act of 1998. Pub.
L. 105-206 and the Community Renewal Tax Relief Act of 2000, Pub. L. 106-554. These
laws are referred to collectively as GUST.

 

Our opinion on
the acceptability of the form of the plan is not a ruling or determination as
to whether an employer’s plan qualifies under Code section 401(a), as provided
for in Announcement 2001-77, 2001-30 I.R.B. and outlined below. The terms of
the plan must be followed in operation.

 

Except as
provided below, our opinion does not apply with respect to the requirements of:
(a) Code sections 401(a)(4), 401(a)(26), 401(1), 401(b) and 414(a). Our opinion
does not apply for purposes of Code section 401(a)(10)(B) and section 401(a)(16)
if an employer ever maintained another qualified plan for one or more employees
who are covered by this plan. For this purpose, the employer will not be
considered to have maintained another plan merely because the employer has
maintained another defined contribution plan(s), provided such other plan(s)
has been terminated prior to the effective date of this plan and no annual
additions have been credited to the account of any participant under such other
plan(s) as of any date within the limitation year of this plan. Likewise, if
this plan is first effective on or after the effective date of the repeal of
Code section 415(e), the employer will not be considered to have maintained
another plan merely because the employer has maintained a defined benefit
plan(s), provided the defined benefit plan(s) has been terminated prior to the
effective date of this plan. Our opinion also does not apply for purposes of
Code section 401(a)(16) if, after December 31, 1985, the employer maintains a
welfare benefit fund defined in Code section 419(e), which provides
postretirement medical benefits allocated to separate accounts for key employee
as defined in Code section 419A(D)(1).

 

63

 

Our opinion
applies with respect to the requirements of Code Section 410(b) if 100 percent
of all nonexcludable employees benefit under the plan. Employers that elect a
safe harbor allocation formula and a safe harbor compensation definition can
also rely on an opinion letter with respect to the nondiscriminatory amounts
requirement under section 401(a)(4) and the requirements of sections 401(k) and
401(m) (except where the plan is a safe harbor plan under section 401(k)(12)
that provides for the safe harbor contribution to be made under another plan).

 

An employer
that elects to continue to apply the pre-GUST family aggregation rules in years
beginning after December 31, 1996, or the combined plan limit of section 415(e)
in years beginning after December 31, 1999, will not be able to rely on the
opinion letter without a determination letter. The employer may request a
determination letter by filing an application with Employee Plans
Determinations on Form 5307, Application for Determination for Adopters of
Master or Prototype or Volume Submitter Plans.

 

The form of
the plan is a nonstandardized safe harbor plan that meets the requirements of
section 4.14 of Rev. Proc. 2000-20, 200-6 I.R.B. 553.

 

If you, the
master or prototype sponsor, have any questions concerning the IRS processing
of this case, please call the above telephone number. This number is only for
use of the sponsor. Individual participants and/or adopting employers with
questions concerning the plan should contact the master or prototype sponsor. The
plan’s adoption agreement must include the sponsor’s address and telephone
number for inquiries by adopting employers.

 

If you write
to the IRS regarding this plan, please provide your telephone number and the
most convenient time for us to call in case we need more information. Whether
you call or write, please refer to the Letter Serial Number and File Folder
Number shown in the heading of this letter.

 

You should
keep this letter as a permanent record. Please notify us if you modify or
discontinue sponsorship of this plan.

 

	
   

  	
  Sincerely yours,

  
	
   

  	
   

  
	
   

  	
  /s/ Paul T. Shultz

  	
   

  
	
   

  	
   

  
	
   

  	
  Director

  
	
   

  	
   

  
	
   

  	
  Employee Plans Rulings & Agreements

  

 

64

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