Document:

Exhibit 10.1

 

CONFIDENTIAL
TREATMENT

REQUESTED PURSUANT TO RULE 406

 

	
  United
  Contract No. 165824 & 165974

  	
   

  
	
   

  	
   

  
	
  June 22, 2005

  	
   

  

 

 

Amendment #3 To

 

United ExpressÒ Agreement

 

between

 

United Air
Lines, Inc. and Republic Airline, Inc.

 

and

 

Amendment
#2 To

 

United
Express Agreement

 

between

 

United Air
Lines, Inc. and Chautauqua Airlines, Inc.

 

 

CERTAIN PORTIONS OF THIS EXHIBIT HAVE
BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF
THE SECURITIES ACT OF 1933.  THE OMITTED
MATERIALS HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

 

 

AMENDMENT TO

UNITED EXPRESSÒ
AGREEMENTS

 

This Amendment (the “Amendment”) dated June 22, 2005, (a) amends
the United ExpressÒ
Agreement, dated as of February 9, 2004 as previously amended (the “Republic
Agreement”), between United Air Lines, Inc. (“United”), and Republic
Airline, Inc. (“Republic”); (b)  amends the United ExpressÒ
Agreement, dated as of February 13, 2004 as previously amended (the “Chautauqua
Agreement” and collectively with the Republic Agreement and the Shuttle
Agreement (as defined below), the “United Express Agreements”), between United
and Chautauqua Airlines, Inc. (“Chautauqua”); and (c) amends and
supersedes the letter agreement dated July 7, 2004 (the “Letter Agreement”)
between United and Republic Airways Holdings, Inc. (“RJET”).

 

WHEREAS, United and Republic entered into the Republic Agreement and
seek to amend the Republic Agreement as and to the extent provided herein; and

 

WHEREAS, United and Chautauqua entered into the Chautauqua Agreement
and seek to amend the Chautauqua Agreement as and to the extent provided
herein; and

 

WHEREAS, United and RJET entered into the Letter Agreement and seek to
amend and supersede the Letter Agreement as and to the extent provided herein;

 

NOW, THEREFORE, in consideration of the foregoing premises, mutual
covenants and obligations hereinafter contained, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:

 

1.             ERJ-145 Fleet Plan.  Appendix B to the Chautauqua Agreement shall
be amended by deleting such Appendix and replacing it with the revised Appendix
B attached hereto as Exhibit A to reflect the reduction of the ERJ-145
fleet by taking two ERJ-145 aircraft (the “Removed Aircraft”) out of service on
October 31, 2005.  For purposes of Section II.B.1
of the Chautauqua Agreement, the Removed Aircraft shall be deemed to be
included within the first tranche of ERJ-145 Aircraft that were placed into service.  Chautauqua shall have the right to specify
the specific aircraft to be removed from service.

 

2.             ERJ-170 Fleet Plan.  Appendix B to the Republic Agreement shall be
amended by deleting such Appendix and replacing it with the revised Appendix B
attached hereto as Exhibit B to reflect the increase of the ERJ-170 fleet
by adding five ERJ-170 aircraft (the “Additional Aircraft”) into service on the
dates specified on such revised Appendix B. 
For purposes of Section II.B.1 of the Republic Agreement, the
Additional Aircraft shall be deemed to be included within the second tranche of
ERJ-170 aircraft that were placed into service.

 

3.             Assignment.  Republic shall have the right to assign to
Shuttle America Corp. (“Shuttle”), a wholly owned subsidiary of RJET, Republic’s
obligation to operate some or all of the aircraft to be operated by Republic
under the Republic Agreement.  In the
event Republic makes such assignment, it shall provide written notice(s) to
United stating the aircraft to be operated by Shuttle.  In the event of such assignment, Shuttle
shall be responsible for all obligations of Republic under the Republic
Agreement with respect to the assigned aircraft.  Notwithstanding any such assignment, unless
Republic assigns to Shuttle its obligations with respect to all of such
aircraft, all of the aircraft shall be considered for all purposes, including
without limitation, performance metrics, to be a single fleet operated by
Republic, and

 

 

Republic shall invoice United
and United shall pay Republic as if all services were provided by
Republic.  In the event Republic assigns
to Shuttle its obligations with respect to all such aircraft, all of the
aircraft shall be considered for all purposes, including without limitation,
performance metrics, to be a single fleet operated by Shuttle, and Shuttle
shall invoice United and United shall pay Shuttle.  In such event, United and Shuttle shall enter
into a new United Express Agreement, identical to the Republic Agreement except
that Shuttle shall be the Contractor under such Agreement (the “Shuttle
Agreement”), and the Republic Agreement shall be deemed terminated and
superseded by such Shuttle Agreement. 
Notwithstanding which airline certificate is used to operate the ERJ-170
aircraft, United shall use only one performance grade per performance category
for calculating incentive payments for the ERJ-170 aircraft operated by
Chautauqua, Republic or Shuttle and a breach of any of the United Express
Agreements shall be deemed to be a breach of each of the United Express
Agreements.

 

4.             Amended
[*].  Effective
as of the date hereof the Letter Agreement shall be null and void and of no
force or effect and RJET shall not be obligated to provide United with any [*] thereunder. 
Instead of providing United with the [*] payable
under the Letter Agreement, RJET shall provide United with an amended [*] (the “Amended [*]”)
calculated and applied as provided herein. 
The Amended [*] shall be (a) [*] per month for each aircraft operated in revenue service
(i.e. excluding spares) by Chautauqua, Republic or Shuttle under a United
Express Agreement [*] aircraft
and up to a total of [*] aircraft,
and (b) [*] per month for each aircraft
operated in revenue service (i.e. excluding spares) by Chautauqua, Republic or
Shuttle under a United Express Agreement in excess of [*] aircraft.  For purposes of calculating the Amended [*], (a) the Removed Aircraft shall not be counted as
aircraft operated in revenue service and (b) the Amended [*] will be prorated when an aircraft is introduced into
service or removed from service after the start of the month.  In addition, irrespective of the ERJ170 spare
count shown on Exhibit B, the actual number of aircraft operated in
revenue service will be used to determine the basis for the Amended [*].

 

5.             CPI.  For purposes of calculating Annual Adjustment
Factors under the United Express Agreements, the parties agree that CPI shall
be calculated based upon the average of the change for each month during the
period at issue for the preceding 12 month period in the Consumer Price Index,
U.S. City Average, Urban Wage Earners and Clerical Workers, All Items (base
index year 1982-1984 = 100) as published by the U.S. Department of Labor,
Bureau of Labor Statistics for each month. 
An example of such calculation is set forth in the attached Exhibit C.

 

6.             Republic Agreement
/ Appendix E – Reimbursement Categories.  Appendix E to the Republic Agreement shall be
amended by deleting such Appendix and replacing it with the revised Appendix E
attached hereto as Exhibit D.

 

7.             Early
Termination Rights Regarding ERJ-145 Aircraft.  The third sentence of Section II.B.1 of
the Chautauqua Agreement shall be amended by deleting such sentence and
replacing it with the following:

 

“The term of
the Agreement for the second ERJ tranche (the next eight aircraft) shall expire
on June 30, 2015, provided that United shall have the right to terminate
this Agreement upon 18 months prior written notice to Chautauqua and provided
further that such notice shall not be delivered as to the first tranche of
aircraft prior to December 31, 2007, or as to the second tranche

 

*Confidential

 

 

of aircraft prior to December 31, 2008.”  In addition, Chautauqua shall have the right
to terminate this Agreement upon 18 months prior written notice to United
provided that such notice shall not be delivered as to the first tranche of
aircraft prior to December 31, 2008, or as to the second tranche of
aircraft prior to December 31, 2009.”

 

8.             Miscellaneous.

 

A.            This
Amendment constitutes the entire understanding of the parties with respect to
the subject matter hereof, and supersedes all previous agreements and
understandings, oral and written, with respect to such specific matter and will
not be modified, amended or terminated by mutual agreement or in any manner
except by an instrument in writing, executed by the parties hereto.

 

B.            This
Amendment may be executed in any number of counterparts, each of which shall be
deemed to be an original and all of which, taken together, shall constitute a
single instrument.

 

C.            Except
as expressly amended herein, the United Express Agreements shall remain in full
force and effect.

 

IN WITNESS WHEREOF, the parties hereto have by their duly authorized
officers caused this Amendment to be entered into and signed as of the day and
year first above written.

 

 

	
  UNITED AIR
  LINES, INC.

  	
   

  	
  UNITED
  AIRLINES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Sean Donohue

  	
   

  	
   

  	
  By:

  	
  /s/ Peter McDonald

  	
   

  
	
  Name: Sean Donohue

  	
   

  	
  Name: Peter McDonald

  
	
  Title: V.P.
  – UAX, Ted & Operational Services

  	
   

  	
  Title: Chief
  Operating Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CHAUTAUQUA AIRLINES, INC.

  	
   

  	
  REPUBLIC AIRLINE, INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Bryan K. Bedford

  	
   

  	
   

  	
  By:

  	
  /s/ Bryan K. Bedford

  	
   

  
	
  Name: Bryan K. Bedford

  	
   

  	
  Name: Bryan K. Bedford

  
	
  Title:
  President

  	
   

  	
  Title:
  Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  REPUBLIC AIRWAYS HOLDINGS, INC.

  	
   

  	
  SHUTTLE AMERICA CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Bryan K. Bedford

  	
   

  	
   

  	
  By:

  	
  /s/ Bryan K. Bedford

  	
   

  
	
  Name: Bryan K. Bedford

  	
   

  	
  Name: Bryan K. Bedford

  
	
  Title:
  Chairman

  	
   

  	
  Title:
  Chairman

  
											

 

 

EXHIBIT A

 

APPENDIX B

 

	
   

  	
   

  	
  Fleet as of 6/2/05:

  	
   

  	
   9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  October 31, 2005:

  	
   

  	
  (2)

  

 

Note:  The remaining 7 aircraft are all deemed to be
included within the first tranche of ERJ-145 aircraft that were placed into
service

 

 

EXHIBIT B

 

APPENDIX B

 

RJ - 70 FLEET PLAN

 

	
   

  	
   

  	
  Units

  	
   

  	
  In-Service

  	
   

  	
  Spare

  	
   

  	
  Total Deliveries

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fleet as of 6/2/05:

  	
   

  	
  20

  	
   

  	
  18

  	
   

  	
  2

  	
   

  	
  20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery Dates:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6/7/2005

  	
   

  	
   

  	
  1

  	
   

  	
  19

  	
   

  	
  2

  	
   

  	
  21

  	
   

  
	
  6/25/2005

  	
   

  	
   

  	
  1

  	
   

  	
  20

  	
   

  	
  2

  	
   

  	
  22

  	
   

  
	
  7/1/2005

  	
   

  	
   

  	
  1

  	
   

  	
  21

  	
   

  	
  2

  	
   

  	
  23

  	
   

  
	
  Sep-05

  	
   

  	
   

  	
  1

  	
   

  	
  22

  	
   

  	
  2

  	
   

  	
  24

  	
   

  
	
  Oct-05

  	
   

  	
   

  	
  1

  	
   

  	
  23

  	
   

  	
  2

  	
   

  	
  25

  	
   

  
	
  Nov-05

  	
   

  	
   

  	
  1

  	
   

  	
  24

  	
   

  	
  2

  	
   

  	
  26

  	
   

  
	
  Nov-05

  	
   

  	
   

  	
  1

  	
   

  	
  25

  	
   

  	
  2

  	
   

  	
  27

  	
   

  
	
  Dec-05

  	
   

  	
   

  	
  1

  	
   

  	
  26

  	
   

  	
  2

  	
   

  	
  28

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
  28

  	
   

  	
  26

  	
   

  	
  2

  	
   

  	
  28

  	
   

  

 

Note:
Contractor shall not be liable for any aircraft delivery delays resulting from
verifiable manufacturer caused actions.

 

 

EXHIBIT C

 

2005 CPI UAX Contract Escalators

 

	
  Series Id:

  	
  CWUR0000SA0

  	
   

  	
  Source: http://data.bls.gov/cgi-bin/surveymost

  
	
  Not Seasonally Adjusted

  	
   

  	
  Updated

  	
  01/31/2005

  
	
  Area:

  	
  U.S. city average

  	
   

  	
   

  
	
  Item:

  	
  All items

  	
   

  	
  Simple average for annual CPI

  
	
  Base Period:

  	
  1982-84=100

  	
   

  	
   

  

 

	
  Year

  	
   

  	
  Jan

  	
   

  	
  Feb

  	
   

  	
  Mar

  	
   

  	
  Apr

  	
   

  	
  May

  	
   

  	
  Jun

  	
   

  	
  Jul

  	
   

  	
  Aug

  	
   

  	
  Sep

  	
   

  	
  Oct

  	
   

  	
  Nov

  	
   

  	
  Dec

  	
   

  	
  Annual

  	
   

  
	
  2003

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  2004

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  

 

Chautauqua
and Shuttle America CPI adjustment calculation:

Full
Year 2004 vs Full Year 2003

Effective
Date: 1/1/2005

 

	
  Full Year 2004

  	
   

  	
   

  	
  Full Year 2003

  
	
  Average

  	
  [*]

  	
   

  	
   

  	
  Average

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  YOY D

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  
							

 

Note: Methodology remains the same for out years

 

 

* Confidential

 

 

EXHIBIT D

 

APPENDIX E

 

REIMBURSEMENT CATEGORIES

 

CARRIER CONTROLLED COSTS IN 2005 ECONOMICS

 

United shall pay Contractor the following Reimbursement Category Unit
Rates for Contractor’s United Express flights operated using the aircraft set
forth below:

 

	
  Category

  	
   

  	
  Carrier Controlled Costs

  	
   

  	
  Unit (Driver)

  	
   

  	
  Carrier

  Controlled

  Cost

  (Growth)

  	
   

  	
  Annual

  Adjustment

  Factor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  RJ-170s

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PASS-THRU COSTS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category

  	
   

  	
   

  	
   

  	
  Unit (Driver)

  	
   

  	
  Pass-through Costs

  	
   

  	
  Rate

  (to be

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [*]

  	
   

  	
   

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  

 

* ConfidentialExhibit 4.1

 

	
   

  	
  

  	
   

  
	
   

  	
   

  
	
  COMMON
  STOCK

  	
  COMMON
  STOCK

  
	
   

  	
   

  
	
  NUMBER

  	
  SHARES

  
	
   

  	
   

  
	
  WS

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  SEE REVERSE FOR

  CERTAIN DEFINITIONS

  
	
   

  	
  WILLIAMS
  SCOTSMAN INTERNATIONAL, INC.

  	
   

  
	
   

  	
  INCORPORATED
  UNDER THE LAWS OF THE STATE OF DELAWARE

  	
  CUSIP 809339 20 3

  
	
   

  
	
   

  
	
  THIS CERTIFIES THAT:

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  IS THE OWNER OF:

  
	
   

  
	
  FULLY PAID AND NONASSESSABLE SHARES OF THE PAR VALUE OF $0.01 EACH OF
  THE COMMON STOCK OF

  
	
   

  
	
  WILLIAMS SCOTSMAN INTERNATIONAL, INC.

  
	
   

  
	
  hereinafter called the
  “Corporation”, transferable on the books of the Corporation by the holder
  hereof in person, or by his authorized attorney, upon the surrender of this Certificate
  properly endorsed. This Certificate is not valid until countersigned and
  registered by the Transfer Agent and Registrar.

  
	
  WITNESS
  the facsimile seal of the Corporation and the facsimile signatures of its
  duly authorized officers.

  
	
   

  
	
  Dated:

  	
  [SEAL]

  WILLIAMS

  SCOTSMAN

  INTERNATIONAL, INC.

  INCORPORATED

  1993

  DELAWARE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  COUNTERSIGNED AND
  REGISTERED:

  	
   

  	
   

  	
   

  
	
  REGISTRAR
  AND TRANSFER COMPANY

  	
   

  	
   

  	
   

  
	
  TRANSFER AGENT AND REGISTRAR

  	
  /s/ John B. Ross

  	
   

  	
  /s/ Gerard E. Holthous

  
	
  BY

  	
  AUTHORIZED SIGNATURE

  	
  CORPORATE SECRETARY

  	
   

  	
  PRESIDENT AND CEO

  
								

 

 

	
  AMERICAN BANK NOTE COMPANY

  711
  ARMSTRONG LANE

  COLUMBIA, TENNESSEE 38401

  (931) 388-3003

  	
  PRODUCTION COORDINATOR: VERONICA GLIATTI

  931-490-1706

  PROOF OF JUNE 16, 2005

  WILLIAMS
  SCOTSMAN INTERNATIONAL, INC.

  TSB 20159 FC

  
	
   

  	
   

  
	
  SALES:           C.
  SHARKEY           302-731-7088

  	
  Operator:                 Ron/Teresa

  
	
  / ETHER 7 / LIVE JOBS / W / WILLIAMS 20159 FC

  	
  Rev. 2

  

 

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© SECURITY-COLUMBIAN   UNITED
STATES BANKNOTE CORPORATION

 

 

The
following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

 

	
   

  	
  TEN COM

  	
  –

  	
  as tenants in common

  	
  UNIF GIFT MIN
  ACT–            Custodian
                        

  
	
   

  	
  TEN ENT

  	
  –

  	
  as tenants by the entireties

  	
                         (Cust)
                       (Minor)

  
	
   

  	
  JT TEN

  	
  –

  	
  as joint tenants with right of survivorship

  	
            under
  Uniform Gifts to Minors

  
	
   

  	
   

  	
  and not as tenants in
  common

  	
                Act                                                

  
	
   

  	
   

  	
   

  	
                   (State)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  UNIF TRANS MIN
  ACT–        Custodian
                        

  
	
   

  	
   

  	
   

  	
                       (Cust)
                      (Minor)

  
	
   

  	
   

  	
   

  	
                under
  Uniform Transfers to Minors

  
	
   

  	
   

  	
   

  	
              Act                                                

  
	
   

  	
   

  	
   

  	
               (State)

  
	
   

  	
   

  	
   

  	
   

  
	
  Additional abbreviations may also be used though not in the above
  list.

  
	
   

  
	
  For value received, _______________________________________ hereby
  sell, assigns and transfer unto

  
	
   

  
	
  PLEASE INSERT SOCIAL SECURITY OR OTHER

  IDENTIFYING NUMBER OF ASSIGNEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
							

 

	
   

  
	
  Please Print
  or Typewrite Name and Address including Postal Zip Code of Assignee

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  	
  Shares 

  
	
  represented by the within Certificate, and
  do hereby irrevocably constitute and appoint

  
	
   

  
	
   

  
	
  Attorney to transfer the said shares on the
  books of the within-named Corporation with full power of substitution in the
  premises.

  

 

 

 

	
  Dated:

  	
   

  	
   

  

 

 

	
   

  	
   

  
	
  NOTICE:

  	
  The signature to this
  assignment must correspond with the name as written upon the face of the Certificate,
  in every particular, without alteration or enlargement, or any change
  whatever.

  

 

 

	
  Signature(s) Guaranteed:

  	
   

  
	
   

  	
  THE SIGNATURE(S) MUST BE
  GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS
  AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED
  SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.

  

 

 

KEEP THIS
CERTIFICATE IN A SAFE PLACE.  IF IT IS
LOST, STOLEN, MUTILATED OR DESTROYED, THE CORPORATION WILL REQUIRE A BOND OF
INDEMNITY AS A CONDITION TO THE ISSUANCE OF A REPLACEMENT CERTIFICATE.

 

 

	
  AMERICAN BANK NOTE COMPANY

  711
  ARMSTRONG LANE

  COLUMBIA,
  TENNESSEE 38401

  (931) 388-3003

  	
  PRODUCTION COORDINATOR: VERONICA GLIATTI 931-490-1706

  PROOF OF JUNE 7, 2005

  WILLIAMS SCOTSMAN INTERNATIONAL, INC.

  TSB 20159 BK

  
	
   

  	
   

  
	
  SALES:           C.
  SHARKEY            302-731-7088

  	
  Operator:                                     Ron

  
	
   

  	
   

  
	
  / ETHER 7 / LIVE JOBS / W /
  WILLIAMS 20159 BK

  	
  New

  

 

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