Document:

10.7 ExecutiveEquityIncentivePlan

CHIRON GUERNSEY HOLDINGS L.P. INC.
EXECUTIVE EQUITY INCENTIVE PLAN
I.    Purpose.  The purpose of this Chiron Guernsey Holdings L.P. Inc. Executive Equity Incentive Plan (the “Plan”) is to promote the interests of Chiron Guernsey Holdings L.P. Inc., a Guernsey limited partnership (the “Partnership”), and its Affiliates (as defined below) by (i) attracting and retaining officers and employees of the Partnership and its Affiliates and (ii) enabling such persons to acquire an equity interest in and participate in the long-term growth and financial success of the Partnership.  The Plan is not intended to preclude other management incentive awards and programs.  Capitalized terms used herein and not otherwise defined have the meanings given them in Section II.
II.    Definitions.  As used in the Plan, the following terms shall have the meanings set forth below:
“Affiliate” means, with respect to any Person, any other Person that, at the time of reference, directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person.  For the purposes of this definition, the terms “control,” “is controlled by” or “under common control with” mean possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person whether through the ownership of voting securities, by contract or otherwise.
“AHS” shall mean the Active Healing Solutions business unit of KCI.
“Base Case Business Plan” shall mean (i) in the case of a Divestiture, achievement of (A) 100% or more of consolidated EBITDA projections contained within the Management Case Plan and (B) 95% or more of divisional revenue projections contained within the Management Case Plan applicable to the division/business sold in the Divestiture; and (ii) in the case of a Reorganization, achievement of (x) 100% or more of consolidated EBITDA projections contained within the Management Case Plan and (y) 95% or more of consolidated revenue projections contained within the Management Case Plan, in each case, measured on a quarterly basis (through December 31, 2012) and thereafter on a last twelve months basis.
“Business Sale” means a sale of all of the equity interests or substantially all the assets of a subsidiary of the Partnership or an Affiliate, or the sale of the assets of a division or business unit of the Partnership or an Affiliate, to a Person or group of Persons who were not Requisite Limited Partners (as defined in the LP Agreement) at any time prior to such sale.

“Call Right”  means any right of the General Partner, the Partners or the Partnership to repurchase equity securities of a Participant pursuant to the Plan, any Profits Interest Award Agreement, or otherwise.
“Cause” means conduct involving one or more of the following: (i) the substantial and continuing failure of the Participant to render services to the Partnership or any subsidiary or Affiliate in accordance with the Participant’s obligations and position with the Partnership, subsidiary or Affiliate, provided that the Partnership or any subsidiary or Affiliate provides the Participant with adequate notice of such failure and, if such failure is capable of cure, the Participant fails to cure such failure within 30 days of the notice; (ii) dishonesty, gross negligence or breach of fiduciary duty; (iii) the Participant’s indictment of, conviction of, or no contest plea to, an act of theft, fraud or embezzlement; (iv) the commission of a felony; or (v) a material breach of the terms of any agreement between the Participant, on the one hand, and the Partnership or any subsidiary or Affiliate on the other hand or a material breach of any material Partnership policy.
“Change of Control” has the meaning set forth in the LP Agreement.
“Code” means the Internal Revenue Code of 1986, as amended from time to time.
“Disability” means, unless in the case of a particular Profits Interest Unit award the applicable Profits Interest Unit Award Agreement states otherwise, a condition entitling the Participant to receive benefits under a long-term disability plan of the Partnership or an Affiliate, or, in the absence of such a plan, the complete and permanent inability by reason of illness or accident to perform the duties of the occupation at which a Participant was employed or served when such disability commenced. Any determination of whether Disability exists shall be made by the General Partner in its reasonable discretion.
“Distributions” means distributions made to Partners pursuant to Section 7.1 of the LP Agreement.
“Distribution Threshold” has the meaning set forth in the LP Agreement.
“Divestiture” shall mean, with respect to a given Participant, the consummation of a divestiture of the business unit of the Partnership for which the Participant performs services (either LifeCell or AHS), in connection with a Business Sale.
“Effective Date” has the meaning set forth in Article X.A of the Plan.

“Employer” means, with respect to any Participant, the Partnership or its Affiliate for which the Participant provides employment or other services constituting Employment.
“Employment” and “termination of employment” and similar references mean, respectively, service with and termination of service from the Partnership and its Affiliates.  For this purpose, “service” includes service as an employee, partner, consultant or other independent contractor, but, with respect to non-employee services, only for periods of a continuing significant service relationship.  All determinations regarding employment and service (for purposes of administering the Plan or any Profits Interest Unit Award Agreement) shall be made by the General Partner in its sole discretion.  In addition, the General Partner shall, in its reasonable discretion, determine whether or not a leave of absence is a termination of employment for purposes of administering the Plan or any Profits Interest Unit Award Agreement. In the case of a Divestiture, termination of employment without Cause shall be deemed to include the Participant’s ceasing to be employed by the Issuer or its Affiliates due to the Participant’s continuing employment with the purchaser (or an affiliate thereof) involved in such Divestiture.

“Fair Market Value” shall mean the fair market value per Profits Interest Unit as determined by the General Partner in good faith based upon the amount such Profits Interest Unit would have received as a distribution in the event of a liquidation of the Partnership as of the date of determination, provided that, for the avoidance of doubt, no valuation discount (including without limitation for lack of marketability or for minority interest) shall be taken into account when such determination is made and provided further that, for purposes of Section VI(F) of the Plan, if such determination is disputed by a Participant, if requested by the Participant in writing within 5 days of the General Partner’s communication of such determined fair market value, an independent internationally recognized expert financial advisory or valuation expert selected by the General Partner and reasonably acceptable to the Participant will make the determination based upon the same methodology (a “Third Party Valuation”).  The Partnership will bear the cost of the Third Party Valuation; provided that if the fair market value as determined by the Third Party Valuation is within 110% of the fair market value as initially determined by the General Partner, the Participant will bear the full cost of such Third Party Valuation.
“Financing Restrictions” means any applicable restrictions under the financing agreement to which the Partnership or any of its subsidiaries and Affiliates are a party or any other material contract to which the Partnership or any of its Affiliates are a 

party which preclude the payment to Participants in cash upon the exercise of a Call Right or a Put Right.
“General Partner” means the General Partner of the Partnership.
“Good Reason” means one or more of the following: (i) the material reduction of Participant’s duties and/or responsibilities, which is not cured within 30 days after the Participant provides written notice to the Employer; provided however, it shall not be considered Good Reason if, upon or following a Change in Control, the Participant’s duties and responsibilities remain the same as those prior to a Change in Control but the Participant’s title and/or reporting relationship is changed; (ii) the material reduction of Participant’s base salary (which is not cured within 30 days after the Participant provides written notice), other than across-the-board decreases in base salary applicable to all executive officers of the Employer; or (iii) the relocation of the Participant to a business location in excess of 50 miles from the Participant’s place of employment on the Date of Grant (which is not cured within 30 days after the Participant provides written notice).  To be considered a resignation from employment on an account of Good Reason, the Participant must provide written notice to the Employer (stating that Participant believes one or more of the Good Reason conditions described above exists) within 30 days following the initial existence of such condition, and must resign within 30 days following the Employer’s failure to cure such condition.
“Immediate Family” means a Participant’s spouse, children or grandchildren (including adopted children, stepchildren and grandchildren).
“Initial Public Offering” has the meaning set forth in the LP Agreement.
“KCI” shall mean Kinetic Concepts, Inc., and any successor thereto.
“LifeCell” shall mean LifeCell Corporation, or any successor thereto.
“LP Agreement” means the Amended and Restated Limited Partnership Agreement of the Partnership, dated as of November 4, 2011, as may be amended and/or restated from time to time.
“Management Case Plan” shall mean the business projections included in data room files 4.1.2 (5 Year BS Projection), 4.1.3 (5 Year CF Projections) and 4.1.5 (5 Year Income Statement Projections) as provided to the Sponsors by Kinetic Concepts, Inc., in connection with the Merger Agreement.

“Marketable Securities” shall mean securities that (i) are freely traded without restriction of volume or manner of sale under Rule 144 of the Securities Act of 1933, (2) are listed on any of the New York Stock Exchange, Nasdaq Stock Market or another United States or foreign traded public exchange reasonably acceptable to the Issuer and (3) have a sufficient daily trading volume, as determined by the General Partner in its sole discretion, to permit resales of such securities in such time period, volume and manner as the General Partner deems appropriate without a discount.
“Merger” means the consummation of the transactions contemplated by the Merger Agreement.
“Merger Agreement” means the Agreement and Plan of Merger, dated as of July 12, 2011 by an among Kinetic Concepts, Inc., a Texas corporation, Chiron Holdings, Inc., a Delaware corporation and Chiron Merger Sub Inc., a Delaware corporation.
“Participant” means any Person who is eligible for, and selected by the General Partner, in its sole discretion, to receive, an award of Profits Interest Units under the Plan.
“Partner” means a Partner as defined in the LP Agreement.
“Person” means an individual, a corporation, a company, a voluntary association, a partnership, a joint venture, a limited liability company, a trust, an estate, an unincorporated organization, a governmental authority or other entity.
“Profits Interest Unit Award Agreement” means any written agreement, contract, or other instrument or document (which may include provisions of an employment agreement to which the Partnership or any Affiliate is a party) in a form approved by the General Partner, in its sole discretion, which evidences any Profits Interest Units awarded hereunder or otherwise subject to the terms of the Plan, which may, but need not, be executed or acknowledged by a Participant.
“Profits Interest Units” has the meaning set forth in the LP Agreement.
“Promissory Notes” shall mean promissory notes bearing interest at a rate equal to the prime rate in effect at the time of issuance of the promissory note and paying out pari passu in the event the Financing Restrictions permit partial payments when more than one Participant is due payment pursuant to any applicable Put Right or Call Right and including mandatory repayment (i) to the fullest extent as and when repayment becomes permissible under the Financing Restrictions; (ii) in an amount equal to any Partner 

distributions under the LP Agreement (as and when distributions become payable to Partners thereunder); and (iii) in full, upon the occurrence of a Change of Control.
“Put Right” means any right of a Participant to require the Partnership to repurchase equity securities of a Participant pursuant to the Plan, any Profits Interest Award Agreement, or otherwise.
“Reorganization” shall mean the consummation of one or more related or unrelated sale or acquisition transactions of Kinetic Concepts, Inc (excluding TSS), LifeCell or AHS business units, involving more than 50% of the gross fair market value on the closing date of Kinetic Concepts, Inc.’s (including LifeCell’s, but excluding TSS) assets (and irrespective of whether such transaction or transactions constitute a Change of Control).
“Securities Act” means the Securities Act of 1933 and the rules and regulations promulgated thereunder, as amended from time to time.
“Sponsor” shall mean any of (i) the Apax Group, (ii) the CPPIB Group and (iii) the PSPIB Group (each as defined in the LP Agreement).
“Transfer” has the meaning set forth in the LP Agreement.
“Transition Termination” shall mean a Participant’s termination of employment by the Employer without Cause or by the Participant for Good Reason at or within 6 months following (i) a Divestiture or (ii) a Reorganization, and such Divestiture or Reorganization, as applicable, occurs on or before the second anniversary of Closing. 
“TSS” shall mean the Therapeutic Support Systems business unit of KCI.

III.    Administration.
A.    The Plan shall be administered by the General Partner.  Subject to the terms of the Plan and applicable law, and in addition to other express powers and authorizations conferred on the General Partner by the Plan, the General Partner shall have full power and authority to:
1.    designate Participants;
2.    designate those Affiliates or other entities whose officers, directors, employees or consultants may participate in the Plan;
3.    determine the number and type of Profits Interest Units to be covered by, or with respect to which payments, rights or other matters are to be calculated in connection with, any award under the Plan;

4.    determine the terms and conditions of any award under the Plan;
5.    in any Profits Interest Unit Award Agreement, limit the amount of appreciation to which any Profits Interest Unit is entitled;
6.    in any Profits Interest Unit Award Agreement, determine and/or increase the vested portion of any award under the Plan;
7.    determine in a Profits Interest Unit Award Agreement whether, to what extent, and under what circumstances awards under the Plan may be settled in cash, Profits Interest Units, other securities or other property, or canceled, forfeited or suspended and the method or methods by which the awards under the Plan may be settled, canceled, forfeited or suspended;
8.    interpret, administer, reconcile any inconsistency, correct any defect and/or supply any omission in the Plan and any instrument or agreement relating to, or any award made under, the Plan;
9.    establish, amend, suspend or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan in accordance with its terms or waive any vesting or forfeiture conditions applicable to any award; and
10.    make any other determination and take any other action that the General Partner, in its sole discretion, deems necessary or desirable for the administration of the Plan in accordance with its terms.
B.    Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations and other decisions under or with respect to the Plan or any award made under the Plan shall be within the sole discretion of the General Partner, may be made at any time and shall be final, conclusive and binding upon all Persons, including the Partnership and its participating Affiliates, any Participant, any holder of Profits Interest Units, and any holder or beneficiary of any award made under the Plan.  Such designations, determinations, interpretations and decisions by the General Partner need not be the same with respect to each Participant (whether or not such Participants are similarly situated); provided, however, that, except as provided herein, in no event shall any such action by the General Partner with respect to any Participant reduce such Participant’s rights under the Plan or under any award agreement issued thereunder.
C.    Neither the General Partner nor any officer, director or employee thereof shall be liable for any action or determination made in good faith with respect to the Plan or any award made under the Plan.

IV.    Interests.
A.    Award Limitation.  Subject to adjustment as set forth in Article IV.B. below:  The aggregate Profits Interest Units together with any additional class of equity that are available for awards under the Plan shall not exceed the limit as set forth in Section 3.1(b) of the LP Agreement.  If, after the Effective Date, any Profits Interest Unit or other class of equity granted hereunder is forfeited, or if any Profits Interest Unit or other class of equity granted hereunder has expired, terminated or been cancelled for any reason whatsoever, and in either such case a Participant has received no benefits of ownership with respect to such forfeited, expired, terminated or cancelled Profits Interest Unit or other class of equity, then such Profits Interest Unit or other class of equity shall again be available for awards and shall again be available to be awarded hereunder.
B.    Adjustments.  If the General Partner determines in its sole discretion that any sale or other extraordinary distribution (whether in the form of cash, Profits Interest Units, securities or other property), recapitalization, reorganization, merger, consolidation, spin-off, initial public offering of the equity interests of a subsidiary or an Affiliate of the Partnership, issuance or exchange of the Profits Interest Units, other ownership interests or other securities of the Partnership, issuance of warrants or other rights to purchase Profits Interest Units, other ownership interests or other securities of the Partnership or other transaction or event affects the Profits Interest Units such that an adjustment is determined by the General Partner to be appropriate in order to prevent inappropriate dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the General Partner shall, in such manner as it deems equitable in its sole discretion, (i) make provision for a cash payment to the holder of an outstanding Profits Interest Unit under the Plan in consideration for the cancellation of such Profits Interest Unit consistent with the treatment of other classes of Profits Interest Units, and/or (ii) adjust any or all of (x) the number of the Profits Interest Units, other ownership interests or other securities of the Partnership (or number and kind of other securities or property) with respect to which awards may be made under the Plan or (y) the number of Profits Interest Units, other ownership interests or other securities of the Partnership (or number and kind of other securities or property) subject to outstanding awards made under the Plan.  No adjustment provided for under this Article IV.B. shall be made on account of the award of Profits Interest Units, the issuance of any other Profits Interest Units or any distribution by the Partnership to any Partner.
V.    Eligibility.  Any Person who is an officer, director, employee, consultant or independent contractor providing services to the Partnership or its Affiliates shall be eligible to be designated as a Participant in the Plan by the General Partner.
VI.    Profits Interest Unit Awards.  The General Partner may cause to be issued or transferred Profits Interest Units to a Participant pursuant to a Profits Interest Unit Award Agreement, upon such terms as the General Partner deems appropriate and consistent with the Plan.  The following provisions are applicable to Profits Interest Units:

A.    General Requirements for Profits Interest Units.  Profits Interest Units will be issued pursuant to a Profits Interest Unit Award Agreement.  The General Partner may establish conditions under which restrictions on Profits Interest Units shall lapse over a period of time or according to such other criteria as the General Partner deems appropriate in its sole discretion.
B.    Number of Profits Interest Units.  The General Partner shall determine the number of Profits Interest Units to be issued or transferred and the restrictions applicable to such award.
C.    Requirement of Employment.  Except as otherwise provided in a Profits Interest Award Agreement, if a Participant’s Employment is terminated, the Profits Interest Unit Award Agreement shall terminate as to all Profits Interest Units covered by the award which remain unvested and, in the event of a termination of Employment for Cause, those that are already vested, and those Profits Interest Units shall be forfeited without consideration, as set forth in the Profits Interest Unit Award Agreement.  The General Partner may, however, provide for complete or partial exceptions to this requirement as it deems appropriate in its sole discretion.
D.    Restrictions on Transfer.  A Participant may not Transfer Profits Interest Units, except as permitted under an applicable Profits Interest Unit Award Agreement.
E.    Non-Voting.  The Profits Interest Units shall not have any voting rights.
F.    Right to Repurchase Profits Interest Units.  
(a)  The General Partner shall have the right, but not the obligation, in its sole discretion, to during the six month period commencing on the later of (x) the date on which such Participant is no longer employed by the Partnership and its Affiliates and (y) the six month anniversary of the date such Participant’s Profits Interest Units became vested, make or cause to be made a payment to the Participant in consideration for the cancellation of any one or more of the vested Profits Interest Units then held by the Participant (with the amount of the vested Profits Interest Units then held by the Participant being in all events determined after giving effect to any vesting that occurs co-incident with the date of the termination of Employment of such Participant).  
(b) The repurchase price per Profits Interest Unit shall equal the Fair Market Value on the date of purchase; provided that, in the event of a termination of a Participant’s Employment for Cause, any vested Profits Interest Units will be 

forfeited without consideration and deemed to have been reacquired by the Partnership for $0.00.
(c) Repurchases of Profits Interest Units, whether pursuant to the Plan or any rights or obligations set forth in a Profits Interest Unit Award Agreement, shall be subject to any applicable Financing Restrictions.  Without limiting the generality of the foregoing, in the event that such Financing Restrictions apply, the General Partner may in its sole discretion (i) toll the period for repurchase by the Partnership until such Financing Restrictions cease to apply, or (ii) deliver Promissory Notes as payment to the Participant, for the portion of the purchase price not payable in cash.  
(d) In the event the General Partner exercises such a repurchase right in connection with a termination of a Participant’s employment by the Partnership and its Affiliates without Cause or by the Participant for Good Reason and a Change of Control occurs within 105 days following such termination, the General Partner shall pay to such Participant the excess, if any, of the Fair Market Value of the previously acquired Profits Interest Units implied by such Change of Control over the amount previously paid to such Participant in connection with the prior exercise of the repurchase right.
G.    Distribution Thresholds.  Upon the issuance of any Profits Interest Unit, the General Partner in its sole discretion shall fix the Distribution Threshold applicable to such Profits Interest Unit.
VII.    Amendment and Termination.  The General Partner may amend, alter, suspend, discontinue, or terminate the Plan or any portion thereof at any time; provided, that any such amendment, alteration, suspension, discontinuance or termination that would materially adversely affect the rights of any Participant shall not to that extent be effective without the written consent of such Participant or the consent of Participants holding 75% of the Profits Interest Units of all such adversely affected Participants, taking in account, for such purpose, all such outstanding interests, whether or not then vested; provided, further, that such consent shall not be required with respect to an amendment made to conform the Plan to the LP Agreement, as currently in effect or as such agreement may subsequently be amended.  Nothing in the Plan or in any Profits Interest Unit Award Agreement shall require the consent of any holder of any Profits Interest Unit to any amendment of the LP Agreement or to any Change of Control, Initial Public Offering or reorganization or restructuring contemplated or permitted thereby.

VIII.    General Provisions.
A.    No Rights to Awards/Prior Awards.  No Person shall have any claim to receive any award under the Plan.  There is no obligation for uniformity of treatment of 

Participants regarding the number of Profits Interest Units awarded or the manner – directly or indirectly, in accordance with the provisions of Article IX of the Plan – in which awards are made.  The terms and conditions of awards made under the Plan need not be the same with respect to each Participant.  Any Participant who receives an award under this Plan  shall, by acceptance of such award, be deemed to have acknowledged and agreed that such Participant has no further rights with respect to any equity interests or awards previously granted by Kinetic Concepts, Inc. or its Affiliates prior to the consummation of the Merger, other than the payment of the unpaid portion, if any, of the cash consideration with respect to any such equity interests or awards that are payable pursuant to the terms of the Merger Agreement.  
B.    Delegation.  Subject to the terms of the Plan, the provisions of any Profits Interest Unit Award Agreement and applicable law, the General Partner may delegate to one or more officers of the Partnership or any Affiliate, or to a committee of such officers, the authority, subject to such terms and limitations as the General Partner shall determine, to award Profits Interest Units or make adjustments, in accordance with the provisions of Article IV.B, with respect to Profits Interest Units held by Participants.
C.    Section 83(b) Election.  Unless the General Partner determines otherwise, as a condition subsequent to the issue or transfer of any Profits Interest Unit, the Participant will be required to (i) become a party to the LP Agreement and (ii) make a timely, valid election under Section 83(b) of the Code.
D.    Withholding.  A Participant may be required to pay to the Partnership, and the Partnership and its Affiliates shall have the right and are hereby authorized to withhold from any payment due or transfer made under any Profits Interest Unit, under the Plan or from any other amount owing to a Participant (including in connection with any Transfers), the amount (in cash, securities or other property) of any applicable Federal, state, or local withholding taxes in respect of a Profits Interest Unit or any payment or transfer under a Profits Interest Unit or the Plan and to take such other action as may be necessary in the opinion of the General Partner to satisfy all obligations for the payment of such taxes, provided that the Participant may make alternative arrangements for the payment of any required withholding taxes which the General Partner deems acceptable in its sole discretion.
E.    No Limit on Other Compensation Arrangements.  Nothing contained in the Plan shall prevent the Partnership or any Affiliate from adopting or continuing in effect other compensation arrangements, which may, but need not, provide for the award of Profits Interest Units, securities and other types of awards, and such arrangements may be either generally applicable or applicable only in specific cases.
F.    No Right to Employment.  No award made hereunder shall be construed as giving a Participant the right to be retained in the employ of, or in any other continuing relationship with, the Partnership or any of its Affiliates.
G.    Special Incentive Compensation.  By acceptance of an award hereunder, each Participant shall be deemed to have agreed that such award is special 

incentive compensation that will not be taken into account, in any manner, as salary, compensation or bonus in determining the amount of any payment under any pension, retirement, life insurance, disability, severance or other employee benefit plan of the Partnership or any of its Affiliates.  In addition, each beneficiary of a deceased Participant shall be deemed to have agreed that such award will not affect the amount of any life insurance coverage, if any, provided by any Person on the life of the Participant which is payable to such beneficiary under any life insurance plan covering employees.
H.    Other Laws.  The General Partner may refuse to issue or transfer any Profits Interest Units if, acting in its sole discretion, it determines that the issuance or transfer of such Profits Interest Units would violate the LP Agreement or any applicable law or regulation.  Without limiting the generality of the foregoing, no award of a Profits Interest Unit hereunder shall be construed as an offer to sell securities of the Partnership, and no such offer shall be outstanding, unless and until the Partnership in its sole discretion has determined that any such offer, if made, would be in compliance with all applicable securities laws.
I.    No Trust or Fund Created.  Neither the Plan nor any award made under the Plan shall create or be construed to create a trust or a fiduciary relationship between the Partnership or any Affiliate and a Participant or any other Person.
J.    Governing Law.  The validity, construction and effect of the Plan and any rules and regulations relating to the Plan and any Profits Interest Unit Award Agreement shall be determined in accordance with the laws of the State of Delaware applicable to agreements made and to be performed entirely within such state.
K.    Severability.  If any provision of the Plan or any award made hereunder is, becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or as to any Person or award, or would disqualify the Plan or any award under any law deemed applicable by the General Partner, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the General Partner, materially altering the intent of the Plan or the award, such provision shall be stricken as to such jurisdiction, Person or award and the remainder of the Plan and any such award shall remain in full force and effect.
L.    Headings.  Headings are used herein solely as a convenience to facilitate reference and shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof.
M.    Interpretation.  The terms defined in the singular shall have a comparable meaning when used in the plural, and vice versa.  Any reference hereunder to a sole discretion scope of the General Partner’s authority shall mean that such discretion shall be exercised in good faith.
N.    Gender.  Except where otherwise indicated by the context, any masculine term used herein shall also include the feminine.

O.    Amendment to LP Agreement.  Neither the adoption of the Plan nor any award made hereunder shall restrict in any way the adoption of any amendment to, or any restatement of, the LP Agreement in accordance with the terms of such agreements.  Nothing in the Plan or in any Profits Interest Unit Award Agreement shall require the consent of any holder of any Profits Interest Unit to any amendment to or restatement of the LP Agreement.
P.    Conflict Between or Among the Plan, the LP Agreement, the LP Agreement and/or the Related Award Agreements.  The Plan is subject to the LP Agreement, the terms and provisions of which are hereby incorporated herein by reference.  In the event of a conflict between any term or provision contained herein or therein, the LP Agreement shall govern and prevail.  In the event of a conflict between any term or provision contained herein or in any Profits Interest Unit Award Agreement, this Plan shall govern and prevail.
IX.    Future Award of Additional Classes of Units.  The General Partner reserves the right, from time to time in the future, and in its sole discretion, to award additional classes of equity interests to Participants, and such additional classes of equity interests shall constitute Profits Interest Units (as defined in the LP Agreement) for purposes of the LP Agreement.  In that event, the terms of the Plan shall be applied without the need of any further amendments thereto (and without any need to obtain the consent of any existing Participants), as if such additional classes of equity were Profits Interest Units described hereunder, except as the applicable award agreements with respect to such additional classes of equity may otherwise provide.  In furtherance hereof, the General Partner may approve a Profits Interest Unit Award Agreement with respect to such additional classes of equity.
X.    Term of the Plan.
A.    Effective Date.  The Plan, when approved by the General Partner, shall be effective as of the date of adoption (the “Effective Date”).
B.    Expiration Date.  No award shall be made under the Plan after the tenth anniversary of the Effective Date.  Unless otherwise expressly provided in the Plan or in an applicable Profits Interest Unit Award Agreement, any Profits Interest Unit awarded hereunder or otherwise subject hereto may, and the authority of the General Partner to amend, alter, adjust, suspend, discontinue or terminate any conditions or rights under any such Profits Interest Unit shall, continue after the tenth anniversary of the Effective Date.10.8 ExecEquityIncentivePlanPIUAwardAmt

CHIRON GUERNSEY HOLDINGS L.P. INC.
EXECUTIVE EQUITY INCENTIVE PLAN
PROFITS INTEREST UNIT AWARD AGREEMENT
This Profits Interest Unit Award Agreement (this “Agreement”), is made as of [_______], 2011 (hereinafter referred to as the “Date of Grant”), between Chiron Guernsey Holdings L.P. Inc., a Guernsey limited partnership (the “Partnership”), and ________ (the “Participant”):
R E C I T A L S:
WHEREAS, the Partnership has adopted the Chiron Guernsey Holdings L.P. Inc. Executive Equity Incentive Plan, as amended from time to time (the “Plan”), which Plan is incorporated herein by reference and made a part of this Agreement (capitalized terms used and not otherwise defined in this Agreement shall have the meanings set forth in the Plan or in the LP Agreement, as applicable); 
WHEREAS, the Participant is employed by or otherwise provides services to the Partnership or an Affiliate thereof;
WHEREAS, the Participant has agreed to pay the Partnership $0.01 in the aggregate pursuant to Guernsey Law in consideration for the award of Profits Interest Units set forth herein, the receipt of which is hereby acknowledged;
WHEREAS, the General Partner has determined that it would be in the best interests of the Partnership to make the award of Profits Interest Units provided for herein to the Participant pursuant to the Plan and the terms set forth herein; and
WHEREAS, the award set forth herein is designed to compensate the Participant for his time and commitment in the performance of services to the Partnership or an Affiliate thereof by providing the Participant with a share of the appreciation and profits of the Partnership with respect to periods beginning after the date hereof.
NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1.Award of Profits Interest Units.

(a)Profits Interest Units.  Subject to the terms and conditions of this Agreement and the Plan, the Partnership hereby grants to the Participant an award of [___] Profits Interest Units, with a Distribution Threshold of $1,714,808,674.06, in each case subject to adjustment as set forth in the Plan and this Agreement.  The Profits Interest Units shall vest in accordance with Section 2 of this Agreement.
 
(b)Distributions.  Distributions in respect of Profits Interest Units shall be made to the Participant in accordance with the provisions of the LP Agreement.

     2.    Vesting.   The Profits Interest Units granted to the Participant shall vest in accordance with this Section 2.  All such Profits Interest Units shall be unvested on the Date of Grant and, except as provided in Section 4, shall vest as follows: 

(a)Time Vesting Units: With respect to 50% of the Profits Interest Units subject to this Agreement (the “Time Vesting Units”), subject to a Participant's continued employment through the applicable vesting date, 25% of the Time Vesting Units will cliff vest on the first anniversary of the date of grant and the remaining 75% of the Time Vesting Units will then vest ratably on a quarterly basis (e.g., every 3 months thereafter) over the following 12 quarters (36 months) thereafter (therefore, in normal course, the Time Vesting Units will fully vest over the four years from date of grant).  All Time Vesting Units, not previously forfeited, (subject to Section 4(a)), will vest upon the consummation of a Change of Control.

(b)Performance Vesting Units: With respect to the remaining 50% of the Profits Interest Units subject to this Agreement (the “Performance Vesting Units”), the Performance Vesting Units will vest as follows, subject to a Participant's continued employment through the applicable vesting date (except as otherwise provided in Section 3 or 4 below):

◦1/3 of the Performance Vesting Units will vest upon the later of (x) the Sponsors receiving aggregate cash amounts representing a multiple of cumulative Sponsor invested capital (excluding, for the avoidance of doubt, any Participant investments in Class A-2 Interests of the Partnership) (“MOIC”) equal to 1.5x and (y) the occurrence of a Change of Control, an Initial Public Offering or a Qualifying Leveraged Recapitalization (as defined below);
◦1/3 of the Performance Vesting Units will vest upon the later of (x) the Sponsors receiving aggregate cash amounts representing a MOIC equal to 2.0x and (y) (if not having previously occurred) the occurrence of a Change of Control, an Initial Public Offering or a Qualifying Leveraged Recapitalization; and
◦1/3 of the Performance Vesting Units will vest upon the later of (x) the Sponsors receiving aggregate cash amounts representing a MOIC equal to 2.5x and (y) (if not having previously occurred) the occurrence of a Change of Control, an Initial Public Offering or a Qualifying Leveraged Recapitalization.

The General Partner shall determine what MOIC, if any, is attained in respect of the aggregate cash amounts received by the Sponsors.

If not previously forfeited, unvested Performance Vesting Units shall be forfeited upon the final disposition by the Sponsors of all their Class A-1 Interests of the Partnership. 

For purposes of calculating MOIC, Marketable Securities shall be treated as cash.

“Qualifying Leveraged Recapitalization” shall mean one or more leveraged recapitalizations of the Partnership resulting in aggregate distributions to the Partners in an amount equivalent to a MOIC of 1.5x.

3.General Termination of Employment Provisions: 

(a)All vesting of Profits Interest Units will cease immediately upon a Participant no longer being employed by the Employer for any reason other than due to termination by the Employer without Cause or resignation by the Participant for Good Reason, and in such case all unvested Profits Interest Units will be automatically canceled without consideration and forfeited on such date. 

(b)Termination without Cause or by the Participant for Good Reason:  Subject to the provisions of Section 4, all vesting of Profits Interest Units will cease immediately upon a Participant's termination of employment by the Employer without Cause or by the Participant for Good Reason and all unvested Profits Interest Units will be automatically cancelled without consideration and forfeited on such date except that (i) with respect to Time Vesting Interests, the Participant will vest with respect what would have vested on the next scheduled vesting date (e.g., 25% in the event of termination prior to the first anniversary or what would have vested on the next quarterly vesting date in the case of a termination after the first anniversary) and (ii) with respect to Performance Vesting Interests (except for certain Transition Terminations in connection either with a Divestiture or Reorganization (each as described in Section 4)), in the event that a transaction or transactions occur within the 6 month period following such a termination of employment which would have resulted in vesting of any portion of the Performance Vesting Interests, the Participant shall be deemed vested in those interests.  

4.Special Vesting Provisions

(a)Change of Control:  All Time Vesting Interests, not previously forfeited, will vest upon the consummation of a Change of Control.  In the event a Change of Control occurs within 105 days following a Participant's termination of employment by the Employer without Cause or by the Participant for Good Reason, the Participant shall be deemed to vest in all of his or her Time Vesting Interests (i.e., disregarding the prior termination of employment for such purposes)

(b)Divestiture.  In the event of a Transition Termination occurring in connection with a Divestiture, then:

i.With respect to the Time Vesting Units, if the Participant was employed in connection with the business unit involved in the Divestiture, and if (A) such Participant continues (or offers to continue) with the successor to the business for a reasonable transition period of up to one year and (B) such Participant uses his or her best efforts to effect the Divestiture, then such Participant's Time Vesting Interests will fully vest; and

ii.With respect to the Performance Vesting Units, if the Participant was employed in connection with the business unit involved in the Divestiture, and if (A) such Participant continues (or offers to continue) with the successor to the business for a reasonable transition period of up to one year, (B) such Participant uses his or her best efforts to effect the Divestiture and (C) the business unit involved in the Divestiture has met or exceeded its Base Case Business Plan at the date of such Divestiture, then such Participant's Performance Vesting Interests will remain outstanding (i.e., waiver of continuing service condition) and vest when, and if, the MOIC and subsequent IPO, Change of Control or Qualified Leveraged Recapitalization occurs; provided such vesting occurs within 2 years following such Transition Termination.  Any unvested portion of the Performance Vesting Interests which thereafter remain unvested will be forfeited.

(c)Reorganization.  In the event of a Transition Termination in connection with a Reorganization, and if the business unit in respect of which such Participant was employed exceeded its Base Case Business Plan at the time of such Reorganization, then a Pro-Rata Portion (as defined below) of the Participant's Performance Vesting Interests will remain outstanding (i.e., waiver of service condition) and will vest when, and if, the MOIC and subsequent IPO, Change of Control or Qualified Leveraged Recapitalization occurs; provided such vesting occurs within 2 years following such Transition 

Termination.  Any unvested portion of the Performance Vesting Interests which thereafter remain unvested will be forfeited.

“Pro-Rata Portion” shall mean, for purposes of determining vesting in connection with a Reorganization as described above, (x) the number of days a Participant was employed from the Merger to the date of termination of employment divided by (y) 1,461.

(d)Long Service.  In the event a Participant remains employed by the Employer through the fourth anniversary of the Merger, then, in the event of any subsequent termination of the Participant's employment by the Employer without Cause or by the Participant for Good Reason, with respect to Performance Vesting Interests, in the event that a transaction or transactions occur within the 12 month period following termination which would have resulted in vesting of any portion of the Performance Vesting Interests, the Participant shall be deemed vested in those interests.  

(e)Required Sale.  In addition, in the event of a Required Sale (as defined in the LP Agreement) which is made applicable to the Performance Vesting Units pursuant to Section 4.5 of the LP Agreement, the Performance Vesting Units shall, to the extent not previously vested, vest based upon the MOIC implied by the Change of Control to which such Required Sale relates (assuming for such purpose only that the Partners received a distribution with respect to the sale of all of their then remaining Class A Interests at the price per Class A Interest received in connection with such Change of Control).

5.Rights as Holder of Profits Interest Units.  The Participant shall be the record owner of the Profits Interest Units granted hereunder unless and until such Profits Interest Units are forfeited pursuant to Section 3 or 4, repurchased pursuant to Section VI(F) of the Plan or Section 10 hereof or transferred in accordance with Section 7, and as record owner shall be entitled to all rights of a holder of Profits Interest Units; provided, that the Profits Interest Units shall be subject to the limitations on transfer and encumbrance set forth in this Agreement, the Plan and the LP Agreement.

6.Investment Intent; Other Representations of Participant.

(a)Investment Intent.  The Participant hereby represents and warrants that the Profits Interest Units must be held for investment purposes and are not being received with a view to distribution thereof, and covenants and agrees to make such other reasonable and customary representations as requested by the Partnership regarding matters relevant to compliance with applicable securities laws as are deemed necessary by counsel to the Partnership; and

(b)No Reliance on the Partnership.  In making his or her investment decision with respect to the receipt of the Profits Interest Units, the Participant has not relied upon the Partnership or any of its Affiliates, or any representative thereof for any advice of any sort, including, but not limited to tax or securities law advice.

7.Transferability.  The Participant may Transfer, directly or indirectly, any Profits Interest Unit or any interest in any Profits Interest Unit only with the prior written consent of the General Partner, which consent shall be withheld or granted in the sole discretion of the General Partner, or as otherwise expressly permitted or required under the LP Agreement.  Any purported assignment, transfer or grant by the Participant, directly or indirectly, of any Profits Interest Unit or any interest in any Profits Interest Unit which is made without such prior written consent or pursuant to the terms of the LP Agreement shall be entirely null and void, ab initio.

8.Section 83(b) Election and Certain Related Income Tax Considerations.  As a condition subsequent to the issuance of the Profits Interest Units pursuant to this Agreement, the Participant shall execute and deliver to the Partnership, the entity to whom the Participant provides services and the Internal Revenue Service (the “IRS”) a timely, valid election under Section 83(b) of the Code (the “83(b) Election”).  The Participant hereby acknowledges that (x) the Partnership has not provided, and is not hereby providing, the Participant with tax advice regarding the 83(b) Election and has urged the Participant to consult the Participant's own tax advisor with respect to the income taxation consequences thereof, and (y) the Partnership has not advised the Participant to rely on any determination by it or its representatives as to the fair market value specified in the 83(b) Election and will have no liability to the Participant if the actual fair market value of the Profits Interest Units on the date hereof exceeds the amount specified in the 83(b) Election.

9.Becoming a Partner of The Partnership; No Access to Information Regarding The Partnership.  As a further condition to the issuance of the Profits Interest Units pursuant to this Agreement, the Participant shall execute and deliver to the Partnership a copy of the LP Agreement, together with such other documents as the General Partner may require, evidencing such Participant's status as a “Partner” (as defined in the LP Agreement) of the Partnership.  Notwithstanding the Participant's status as a Partner of the Partnership, the Participant shall have no right, solely by virtue of holding a Profits Interest Unit, to (a) examine the books and records of or any other information of the Partnership or (b) obtain any information about the identities of the other Partners of the Partnership (or of the size or nature of such other Partners' interests in the Partnership).

10.General Partner Right to Repurchase Profits Interest Units on Termination of Employment/Limited Put Rights.  

(a)The Profits Interest Units are subject to the Partnership's right of repurchase pursuant to Section VI (F) of the Plan.  In addition, the Participant (or the Participant's legal representative in the event of the Participant's death) shall have the right, but not the obligation, to require the Issuer to purchase their Profits Interest Units at Fair Market Value in the event of the Participant's death or termination of employment due to Disability, determined as of the date of exercise of such right (which shall constitute a Put Right) provided that (i) such Put Right may only be exercised within 90 days following such death or termination due to Disability, (ii) the maximum dollar value of Profits Interest that the Issuer will be required to purchase from the Participant or their estate shall be $5,000,000 in any single calendar year and (iii) in no event shall the Issuer be obligated to purchase more than $20,000,000 worth of Profits Interest Units from all Participants as a group due to exercise of a Put Right on death or termination due to Disability in any single calendar year; provided that, to the extent limited as provided above, any portion of the Profits Interest not purchased as a result of such limitation shall be subject to a subsequent Put Right to the extent permitted under clauses (ii) and (iii) and, to the extent not permitted, when such limitations would no longer prohibit exercise of such Put Rights.  Any Profits Interest Units not repurchased pursuant to such Put Right shall remain subject to the General Partner's right of repurchase under Section VI(F) of the Plan and to the extent not so repurchased shall thereafter remain outstanding to the Participant (or legal representative), subject to the LP Agreement.

(b)Notwithstanding the foregoing, if the Participant exercises a Put Right, the Participant shall have the right to rescind the exercise of such Put Right within five (5) days following the General Partner's notice to the Partnership of its determination of the Fair Market Value of the Profits Interest Units subject to the Put Right or, in the event the Participant has exercised its right to a Third Party Valuation within five (5) days following its receipt of the General Partner's notice of the 

determination of Fair Market Value, within five (5) days following the receipt of the Third Party Valuation.

11.LP Agreement.  Neither the adoption of the Plan nor the grant of any Profits Interest Units pursuant to this Agreement shall restrict in any way the adoption of any amendment to the LP Agreement in accordance with the terms of such agreement.

12.Notices.  Any notice necessary under this Agreement shall be addressed to the Partnership at the principal executive office of the Partnership and to the Participant at the address appearing in the personnel records of the Partnership (or one of the Partnership's Affiliates) for the Participant or to either party at such other address as either party hereto may hereafter designate in writing to the other.  Any such notice shall be deemed effective upon receipt thereof by the addressee.

13.Choice of Law; Forum.  ALL ISSUES AND QUESTIONS CONCERNING THE APPLICATION, CONSTRUCTION, VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS AGREEMENT AND THE EXHIBITS AND SCHEDULES TO THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW RULES OR PROVISIONS (WHETHER OF THE STATE OF DELAWARE  OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE.  EACH OF THE PARTIES HERETO HEREBY (I) IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF ANY COURT LOCATED IN THE STATE OF DELAWARE FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT; (II) AGREES THAT THE SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR DOCUMENT BY U.S. REGISTERED MAIL TO SUCH PERSON'S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION, SUIT OR PROCEEDING IN THE STATE OF DELAWARE WITH RESPECT TO ANY MATTERS TO WHICH IT HAS SUBMITTED TO JURISDICTION AS SET FORTH HEREIN IN THE IMMEDIATELY PRECEDING CLAUSE (I); AND (III) IRREVOCABLY AND UNCONDITIONALLY WAIVES (AND AGREES NOT TO PLEAD OR CLAIM) ANY OBJECTION TO THE LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT IN ANY STATE OR FEDERAL COURT LOCATED IN THE STATE OF DELAWARE, OR THAT ANY SUCH ACTION, SUIT OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

14.WAIVER OF JURY TRIAL.  EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES, AND SHALL CAUSE ITS AFFILIATES TO WAIVE, ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER AGREEMENTS AND INSTRUMENTS DELIVERED HEREUNDER OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

15.Profits Interest Units Subject to Plan and LP Agreement.  By entering into this Agreement the Participant agrees and acknowledges that (i) the Participant has received and read a copy of the Plan and the LP Agreement and (ii) the Profits Interest Units are subject to the Plan and the LP Agreement, the terms and provisions of such Plan and LP Agreement are hereby incorporated herein by reference.  In the event of a conflict between any term or provision contained herein or therein, the LP Agreement shall govern and prevail, and then in decreasing order of seniority, the Plan and lastly, this Agreement.

16.Rules of Construction.  The parties hereto agree that they have been represented by counsel during the negotiation and execution of this Agreement and have participated jointly in the drafting of this Agreement and, therefore, waive the application of any Law, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.

17.Definitional Provisions.  Defined terms used in this Agreement in the singular shall import the plural and vice versa.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  All references herein to Sections shall be deemed to be references to Sections of this Agreement unless the context shall otherwise require.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  Any statute or laws defined or referred to herein shall include any rules, regulations or forms promulgated thereunder from time to time and as from time to time amended, modified or supplemented, including by succession of successor rules, regulations or forms.  Unless otherwise expressly provided herein, any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein.  Any reference to the number of Profits Interest Units means such Profits Interest Units as appropriately adjusted to give effect to any share combinations, restructuring or other capitalizations of the Partnership or its capital structure.  Any reference herein to the holder of a particular class or series of Profits Interest Units shall be a reference to such Person solely in its capacity as a holder of that particular class or series of such Profits Interest Units.

18.Signature in Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
[Signature page follows]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above.
CHIRON GUERNSEY HOLDINGS L.P. INC. 
By:  Chiron Holdings GP, Inc., its General Partner
By:        
Name:  
Title:   

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

[NAME OF PARTICIPANT]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}]]