Document:

10.11 JWEmploymentAgreement

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT (the “Agreement”) dated November 10, 2011 by and between Kinetic Concepts, Inc. (the “Company”) and Joe Woody (the “Executive”).
The Company desires to employ Executive and to enter into an agreement embodying the terms of such employment; and
Executive desires to accept such employment and enter into such an agreement.
In consideration of the premises and mutual covenants herein and for other good and valuable consideration, the parties agree as follows:
1.Term of Employment.  Subject to the provisions of Section 6 of this Agreement, the Company and Executive agree that Executive shall be employed by the Company commencing on the later of (x) the date hereof and (y) the date of Executive’s choosing following the consummation of the transactions contemplated by the Agreement and Plan of Merger, dated as of July 12, 2011, by and among Kinetic Concepts, Inc., a Texas corporation, Chiron Holdings, Inc., a Delaware corporation, and Chiron Merger Sub, Inc., a Delaware corporation, with such commencement date expected to be by the middle of November, 2011, but in any event, not later than November 30, 2011 (the date that Executive commences employment with the Company as applicable, the “Commencement Date”) until the fourth anniversary of the Commencement Date (the “Employment Term”); provided that commencing with the fourth anniversary of the Commencement Date, and on each anniversary thereof thereafter (each an “Extension Date”), the Employment Term shall be automatically extended for an additional one year period, unless the Company or Executive provides the other party hereto six (6) months prior written notice before the next Extension Date that the Employment Term shall not be so extended.  Unless this Agreement has been sooner terminated or extended, Executive and the Company shall begin discussions for the purposes of extension or nonrenewal of this Agreement no later than seven (7) months prior to the next Extension Date.  If the parties are amenable to an extension of this Agreement, they shall use their best efforts to complete a new agreement by no later than six (6) months prior to the next Extension Date.  While this Agreement is in effect, Executive's employment with the Company shall be at-will and, as such, may be terminated by Executive or the Company at any time, for any reason and with or without advance notice (except as specifically provided herein), subject to the Company's obligations set forth herein.
2.    Position.
a.    During the Employment Term, Executive shall serve as the President of the Company’s Active Healing Solutions business unit, which focuses on the development and commercialization of advanced wound care therapies based on the Company’s “Negative Pressure Technology Platform” (the “AHS Division”), reporting directly to the Company’s Chief Executive Officer.  In such position, Executive shall have such duties and authority as shall be reasonably determined from time to time by the Board of Directors of Chiron Holdings GP, Inc. (the “Board”) and the Chief Executive Officer of the Company.  Executive shall be entitled to an annual performance review by the Board (commencing 

concurrently with annual reviews of executive officers of the Company following the 2012 fiscal year).
b.    During the Employment Term, Executive will devote Executive’s full business time and best efforts to the performance of Executive’s duties hereunder and will not engage in any other business, profession or occupation for compensation or otherwise which would conflict or interfere with the rendition of such services, either directly or indirectly, without the prior written consent of the Board.  Executive shall be permitted service on one or more company boards subject to Board reasonable approval, provided that such service does not violate the provisions of the Restrictive Covenants Agreement (referenced in Section 7) or materially interfere with Executive’s fulfillment of his job duties.  The parties acknowledge that Executive currently serves on the Board of Directors of Systagenix Ltd and agree to discuss further whether Executive’s continued participation on such board of directors is appropriate following the Commencement Date, and Executive agrees to resign therefrom in the event the Company determines that such continued service would not be in the best interests of the Company. 
c.    Executive’s principal place of employment shall be at the Company’s headquarters in San Antonio, Texas from where, unless otherwise agreed, Executive will perform his duties, subject to customary business travel consistent with Executive’s duties and responsibilities.  The Company recognizes that Executive, at his option, until the fourth anniversary of the Commencement Date, may continue to maintain his principal residence in the Boston area and may, consistent with the fulfillment of his duties for the Company, travel to and work from his Boston home on an occasional basis. 
3.    Base Salary.  During the Employment Term, the Company shall pay Executive a base salary at the annual rate of $625,000, payable in regular installments in accordance with the Company’s usual payment practices.  Executive’s base salary shall be reviewed annually by the Board and shall be subject to such upward adjustments as may be determined from time to time in the sole discretion of the Board.  Executive’s annual base salary, as in effect from time to time, is hereinafter referred to as the “Base Salary.”  The Company agrees to renegotiate the Base Salary in good faith in the event of Executive’s promotion at any time.  
4.    Bonuses.  
a.    Annual Bonus.  With respect to each full fiscal year during the Employment Term (commencing with the 2012 fiscal year (January 1, 2012 to December 31, 2012)), Executive shall be eligible to earn an annual cash bonus award (an “Annual Bonus”) with a target bonus value equal to one hundred percent (100%) of Executive’s Base Salary (the “Target”) based upon the achievement of performance targets established by the Board in consultation with Executive, within the first 90 days of each fiscal year during the Employment Term.  The Board may, in its discretion, award Executive a bonus of less than or greater than the Target depending on Executive’s satisfaction of his performance targets, and payment of less than or greater than the Target based upon under- or over- performance against the targeted performance goals shall be applied to Executive in a manner consistent with that generally applied to other senior executives of the Company.  Subject to Executive’s continued employment through the date of payment, the Annual Bonus shall be paid to Executive no later than 75 days following the last day of the applicable fiscal year.  The Company agrees that the Board will revisit the performance goals applicable to the Annual Bonus for the 2012 fiscal year, in consultation with Executive, at the conclusion of the first quarter of the 2012 fiscal year, if 

Executive determines in good faith that the goals initially established by the Board are not appropriate.  
b.    Sign-On Bonus.  The Company shall pay Executive a one time sign-on bonus (the “Make-Whole Bonus”) in the amount of $804,000 within 10 days following the Commencement Date; provided that Executive will be obligated to refund the Make-Whole Bonus to the Company in the event of Executive’s resignation without Good Reason (as described below) or termination of Executive’s employment by the Company for Cause (as defined below), in either case, prior to the six month anniversary of the Commencement Date.
c.    2011 Bonus.  Executive shall receive a cash bonus award in the amount equal to a pro-rata portion of the Target Annual Bonus, based upon the number of calendar days remaining in calendar year 2011 as of the Commencement Date, divided by 365.  Subject to Executive’s continued employment through the date of payment, the Annual Bonus shall be paid to Executive no later than 75 days following the last day of calendar year 2011. 
5.    Employee Benefits.  
a.    General Benefits.  During the Employment Term, Executive shall be entitled to participate in the Company’s employee benefit plans (other than annual bonus and incentive plans but including, inter alia, family health and dental insurance, life and disability insurance, 401(k) retirement savings plan and other retirement savings plans) as in effect from time to time (collectively, “Employee Benefits”) on the same basis as those benefits are generally made available to other senior executives of the Company.
b.    Housing/Travel Allowance Prior to Executive Relocation.  The Company will reimburse Executive, on a monthly basis, for reasonable expenses incurred by Executive in connection with obtaining and residing in furnished housing in the San Antonio Texas, area, travel to and from Boston for Executive and spouse, car allowance and other transitional expenses, not to exceed $13,000 per month (the “Housing/Travel Allowance”), it being agreed that, where more cost effective, the Company may provide such benefits directly to Executive (“Company Provided Items”) rather than reimbursement for costs incurred by Executive, in which case the value of such Company Provided Items shall be applied against the amount of the Housing/Travel Allowance. 
c.    Executive Relocation.  In the event that Executive, at his election, decides to move his permanent residence to Texas, the Housing/Travel Allowance shall cease and the Company will provide Executive with the benefits of its executive relocation policy (“Relocation Benefits”) which includes:
		
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	A one time relocation allowance of $32,000.

		
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	Arrangement for packing, transport, storage up to 30 days (if applicable) and delivery and unpacking of Executive’s household goods by a national freight carrier.   These services will be direct billed to the Company.

		
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	Arrangement for transport of two personal vehicles by a contracted van line or, at Executive’s election, reimbursement of $0.55 per mile for driving Executive’s vehicle(s) from Boston, Massachusetts to San Antonio, Texas.   Executive will also be reimbursed reasonable meals and lodging expenses en route based on travel by the most direct route. 

		
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	Final move trip (one way airfare for Executive and eligible dependents) if Executive’s cars have been shipped, arranged through the Company’s Corporate Travel Department.

		
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	Lease cancellation (for renters) – up to 2 months lease payments if breakage costs.

		
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	Boston area home closing costs (customary real estate closing costs for sale of existing home, including realtor’s commission up to 6%), but excluding seller-paid points, pro-rated taxes, pro-rated interest and sellers’ allowances.

		
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	San Antonio area normal closing costs for purchase of a new home with a maximum of 1% for loan origination fee and excluding discount points, pre-paids and homeowner association fees.

All of Executive’s covered Relocation Benefits listed above (but, for the avoidance of doubt, not the Housing/Travel Allowance) will be grossed up for tax purposes.  In the event of Executive’s resignation without Good Reason or termination of Executive’s employment by the Company for Cause within one year following Executive’s relocation to Texas, Executive will be required to reimburse the Company for the Relocation Benefits that the Company has covered.
d.    Business Expenses.  During the Employment Term, reasonable business expenses incurred by Executive in the performance of Executive’s duties hereunder shall be reimbursed by the Company in accordance with Company policies. 
e.    Vacation.  Executive shall be entitled to four weeks of vacation in each year during the Employment Term.  
6.    Termination.  The Employment Term and Executive’s employment hereunder may be terminated by either party at any time and for any reason as set forth below. Notwithstanding any other provision of this Agreement, the provisions of this Section 6 shall exclusively govern Executive’s rights upon termination of employment with the Company and its affiliates.
a.    By the Company For Cause or By Executive Resignation Without Good Reason and Not Due to a CEO Resignation Event.
(i)    The Employment Term and Executive’s employment hereunder may be terminated by the Company for Cause (as defined below) and shall terminate automatically upon Executive’s resignation without Good Reason (as defined in Section 6(c)) and not due to a CEO Resignation Event (as defined in Section 6(d)(ii)); provided that Executive will be required to give the Company at least 60 days advance written notice of a resignation without Good Reason and not due to a CEO Resignation Event.
(ii)    For purposes of this Agreement, “Cause” shall mean conduct involving one or more of the following: (i) the substantial and continuing failure of Executive to render services to the Company or any subsidiary or affiliate in accordance with Executive’s obligations and position with the Company, subsidiary or affiliate; provided that the Company or any subsidiary or affiliate provides Executive with adequate notice of such failure and, if such failure is capable of cure, Executive fails to cure such failure within 30 days after such notice; (ii) gross negligence, or breach of fiduciary duty; (iii) Executive's conviction of, or no contest plea to, an act of theft, fraud or embezzlement, or a felony; or (iv) a material breach of the terms of an agreement between Executive on one hand and the Company or any subsidiary or affiliate on the other hand or a material breach of any Company policy; provided that the Company or any subsidiary or affiliate provides Executive with adequate notice of such breach and, if such breach is capable of cure, Executive fails to cure such breach within 30 days after such notice.

(iii)    If Executive’s employment is terminated by the Company for Cause, or if Executive resigns without Good Reason, Executive shall be entitled to receive:
(A)    unpaid Base Salary and vacation accrued through the date of termination, payable in accordance with the Company’s usual payment practices;
(B)    reimbursement, within 60 days following submission by Executive to the Company of appropriate supporting documentation, for any unreimbursed business expenses properly incurred by Executive in accordance with Company policy prior to the date of Executive’s termination; provided that claims for such reimbursement (accompanied by appropriate supporting documentation) are submitted to the Company within 90 days following the date of Executive’s termination of employment; and
(C)    such fully vested and non-forfeitable Employee Benefits, if any, as to which Executive may be entitled under the employee benefit plans of the Company (other than benefits in the nature of severance pay) (the amounts described in clauses (A) through (C) hereof being referred to as the “Accrued Obligations”).
Following such termination of Executive’s employment by the Company for Cause or resignation by Executive without Good Reason, except as set forth in this Section 6(a)(iii), Executive shall have no further rights to any compensation or any other benefits under this Agreement. 
b.    Disability or Death.
(i)    The Employment Term and Executive’s employment hereunder shall terminate upon Executive’s death and may be terminated by the Company if Executive becomes physically or mentally incapacitated and is therefore unable, with or without reasonable accommodation, to perform one or more essential functions of his position as an employee of the Company as the result of his incapacity due to physical or mental impairment for more than 90 days in any consecutive 180-day period (such incapacity is hereinafter referred to as “Disability”).  Any question as to the existence of the Disability of Executive as to which Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to Executive and the Company.  If Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select a third physician who shall make such determination in writing.  The determination of Disability made in writing to the Company and Executive shall be final and conclusive for all purposes of this Agreement.
(ii)    Upon termination of Executive’s employment hereunder for either Disability or death, Executive or Executive’s estate (as the case may be) shall be entitled to receive the Accrued Obligations, any Annual Bonus earned for the prior year but not yet paid, and a pro rata portion of the Annual Bonus Executive would otherwise have received with respect to the year of termination, based upon actual performance, and paid when the Annual Bonus would otherwise have been payable, equal to the amount of such Annual Bonus times the quotient of (x) the number of days in such calendar year that shall have elapsed through the date of termination, divided by (y) 365.  

Following Executive’s termination of employment due to death or Disability, except as set forth in this Section 6(b)(ii), Executive shall have no further rights to any compensation or any other benefits under this Agreement. 
c.    By the Company Without Cause or Resignation by Executive for Good Reason.  
(i)    The Employment Term and Executive’s employment hereunder may be terminated by the Company without Cause or by Executive’s resignation for Good Reason.  
(ii)    For purposes of this Agreement, “Good Reason” shall mean one or more of the following (other than a CEO Resignation Event): (i) the material reduction of Executive’s title, duties, authority, responsibilities and/or reporting relationship, all from that which existed at the commencement of Executive’s employment, which is not cured within 30 days after Executive provides written notice to the Company; provided however, it shall not be considered Good Reason if, upon or following a Change in Control, Executive’s compensation, duties, authority and responsibilities remain the same as those prior to the Change in Control but Executive’s title is changed (provided that such title is the functional equivalent and of similar prestige to Executive’s title immediately preceding such Change in Control) (ii) the reduction of Executive’s base salary (which is not cured within 30 days after Executive provides written notice) or target bonus percentage to below 100%; (iii) the relocation of Executive to a business location in excess of 50 miles from the Company’s headquarters in San Antonio (which is not cured within 30 days after Executive provides written notice);(iv) the failure of the Company to obtain a satisfactory agreement from any successor of the Company to assume and agree to perform the Company’s obligations under this Agreement and deliver a copy thereof to Executive, unless such assumption occurs by operation of law; or (v) a material breach by the Company of any of its obligations under this Agreement and the Company’s failure to cure such breach within thirty (30) days after written notice thereof by Executive.  To be considered a resignation from employment on an account of Good Reason, Executive must provide written notice to the Company (stating that Executive believes one or more of the Good Reason conditions described above exists) within 90 days following the initial existence of such condition, and must resign within 30 days following the Company’s failure to cure such condition.  For the purposes of this Agreement, “Change in Control” shall mean the consummation of a transaction, whether in a single transaction or in a series of related transactions, with an independent third party or a group of independent third parties pursuant to which such party or parties (A) acquire (whether by merger, consolidation, or transfer or issuance of equity interests or otherwise) equity interests of Chiron Guernsey Holdings L.P. Inc. (or any surviving or resulting company) possessing the voting power to elect a majority of the board of directors of Chiron Holdings GP, Inc. (or such surviving or resulting company) or (B) acquire assets constituting all or substantially all of the assets of Chiron Guernsey Holdings L.P. Inc. and its subsidiaries (as determined on a consolidated basis).
(iii)    If Executive’s employment is terminated by the Company without Cause (other than by reason of death or Disability) or if Executive resigns for Good Reason, Executive shall be entitled to receive:
(A)    the Accrued Obligations; and
(B)    subject to Executive’s continued compliance with the provisions of the restrictive covenants contained in the Restrictive Covenants Agreement attached hereto as Exhibit B and to Executive’s execution, delivery and non-revocation of a 

general release of claims in favor of the Company and its affiliates in the form attached hereto as Exhibit A within 45 days following the termination date:
(i) a severance payment in the amount equal to the product of (x) the Severance Multiple (as defined below) times (y) the sum of Executive's (I) Base Salary plus (II) Annual Bonus at Target for the year of Executive’s termination of employment, subject only to the penultimate paragraph of this section (relating to the Delayed Severance Multiple Event (as defined below)), payable as a lump sum payment within 60 days following the date of Executive’s termination of employment with the Company and its affiliates (the “Severance Amount”); provided, however, that if such 60 day period begins in one calendar year and ends in a second calendar year, then the lump sum payment shall not be paid until the second of such two calendar years (regardless of whether Executive delivers the required general release of claims in the first calendar year or in the second calendar year); and 
(ii) if Executive timely elects health insurance continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), reimbursement of COBRA premiums for up to (x) 18 months (if the Severance Multiple is 1.5 or 2.0) and (y) 12 months (if the Severance Multiple is 1.0), in each case, following the date of Executive’s termination of employment with the Company and its affiliates (so long as applicable law and regulations permit such Company payment without imposition of a tax or penalty on the Company or other plan participants or otherwise adversely affecting the Company, the applicable plan or other participants in such plan).  In the event that Executive becomes eligible to obtain healthcare coverage from a new employer, the Company’s obligation to reimburse COBRA premiums, as applicable, shall cease.  Executive understands and acknowledges that Executive is obligated to inform the Company (or its successor) if Executive becomes eligible to obtain healthcare coverage from a new employer during any period when the Company’s COBRA reimbursement obligations hereunder apply.
For the purposes of this Section 6(c)(iii), the “Severance Multiple” shall be 1; provided that  (x) if the Business Plan Condition is satisfied at the time of Executive’s termination of employment or for the year of termination of employment, as appropriate, the Severance Multiple shall be 1.5; and (y) if such termination occurs within 24 months following a Change of Control, the Severance Multiple shall be 2.0
“Business Plan Condition” shall mean, at the time of Executive’s termination of employment (i) if such termination of employment occurs within the first six months of the applicable calendar year, that the Company achieved performance equal to or in excess of 90% of the Business Plan Goal for the immediately preceding fiscal year and (ii) if such termination of employment occurs after the first six months of the applicable calendar year, that the Company ultimately achieves performance equal to or in excess of 90% of the Business Plan Goal for the year in which such termination occurs (a “Delayed Severance Multiple Event” or, for purposes of Section 6(d), a “Delayed CEO Resignation Event Severance Multiple Event”).
“Business Plan Goal” shall mean the Company’s achievement of its budgeted EBITDA based business plan for the AHS Division for the year in question; provided that at the conclusion of the first quarter of the 2012 fiscal year, Executive shall have an opportunity to 

present adjustments to the budgeted business plan for subsequent years, subject to the approval of the Board, if he determines in good faith that the goals initially budgeted and established by the Board are not appropriate.
In the case of the Delayed Severance Multiple Event, payment of any incremental amount due to achieving the Business Plan Condition will be paid to Executive in the following calendar year (but within 75 days after the end of the year of termination) and promptly after the Company’s determination that the Business Plan Condition has been satisfied.
Following Executive’s termination of employment by the Company without Cause (other than by reason of Executive’s death or Disability) or by Executive’s resignation for Good Reason, except as set forth in this Section 6(c)(iii), Executive shall have no further rights to any compensation or any other benefits under this Agreement or under any other severance or termination benefit plan sponsored or maintained by the Company. 
d.    Termination Due to a CEO Resignation Event.
(i)    The Employment Term and Executive’s employment hereunder may be terminated by Executive due to a CEO Resignation Event.  
(ii)    For purposes of this Agreement, “CEO Resignation Event” shall mean Executive’s election to resign from employment with the Company at any time during the 60 day period commencing on the second anniversary of the Commencement Date if (A) Executive remains employed with the Company through the second anniversary of the Commencement Date and (B) on or prior to the second anniversary of the Commencement Date Executive has not been promoted to either (i) Chief Executive Officer of the Company, (ii) Chief Operating Officer of the Company or (iii) Chief Executive Officer of the AHS business operating as a standalone entity with Executive reporting directly to and having a seat on the Company’s Board.
(iii)    If Executive’s employment is terminated by Executive due to a CEO Resignation Event, Executive shall be entitled to receive:
(A)    the Accrued Obligations; and
(B)    subject to Executive’s continued compliance with the provisions of the restrictive covenants contained in the Restrictive Covenants Agreement attached hereto as Exhibit B and to Executive’s execution, delivery and non-revocation of a general release of claims in favor of the Company and its affiliates in the form attached hereto as Exhibit A within 45 days following the termination date:

(i) a severance payment in the amount equal to the product of (x) the CEO Resignation Event Severance Multiple (as defined below) times (y) the sum of Executive's (I) Base Salary plus (II) Annual Bonus at Target for the year of Executive’s termination of employment, except as set forth in the penultimate paragraph of this Section regarding Delayed CEO Resignation Event Severance Multiple Event, payable as a lump sum payment within 60 days following the date of Executive’s termination of employment with the Company and its affiliates (the “Severance Amount”); provided, however, that if such 60 day period begins in one calendar year and ends in a second calendar year, then the lump sum payment shall not be paid until the second of such two calendar years (regardless 

of whether Executive delivers the required general release of claims in the first calendar year or in the second calendar year); and 
(ii) if Executive timely elects health insurance continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), reimbursement of COBRA premiums for up to 18 months following the date of Executive’s termination of employment with the Company and its affiliates (so long as applicable law and regulations permit such Company payment without imposition of a tax or penalty on the Company or other plan participants or otherwise adversely affecting the Company, the applicable plan or other participants in such plan).  In the event that Executive becomes eligible to obtain healthcare coverage from a new employer, the Company’s obligation to reimburse COBRA premiums, as applicable, shall cease.  Executive understands and acknowledges that Executive is obligated to inform the Company (or its successor) if Executive becomes eligible to obtain healthcare coverage from a new employer during any period when the Company’s COBRA reimbursement obligations hereunder apply.
For the purposes of this Section 6(d)(iii), the “CEO Resignation Event Severance Multiple” shall be 1; provided that if the Business Plan Condition is satisfied at the time of Executive’s termination of employment or for the year of termination of employment, as appropriate, the CEO Resignation Event Severance Multiple shall be 2.0.
In the case of the Delayed CEO Resignation Event Severance Multiple Event, payment of any incremental amount due to achieving the Business Plan Condition will be paid to Executive in the following calendar year (but within 75 days after the end of the year of termination) and promptly after the Company’s determination that the Business Plan Condition has been satisfied.
Following Executive’s termination of employment by the Company due to a CEO Resignation Event, except as set forth in this Section 6(d)(iii), Executive shall have no further rights to any compensation or any other benefits under this Agreement or under any other severance or termination benefit plan sponsored or maintained by the Company. 
e.    Expiration of the Term.   In the event either party elects not to extend the Employment Term pursuant to Section 1, unless Executive’s employment is earlier terminated pursuant to paragraphs (a), (b), (c) or (d) of this Section 6, Executive’s rights under this Agreement shall terminate on the close of business on the day immediately preceding the next scheduled Extension Date and in such event (x) if Executive elects not to extend the Employment Term, Executive shall be entitled to receive the Accrued Obligations and (y) if the Company elects not to extend the Employment Term pursuant to Section 1, Executive shall be entitled to receive the benefits described in Section 6(c)(iii).  Following such termination of Executive’s employment hereunder as a result of either party’s election not to extend the Employment Term, except as set forth in this Section 6(e), Executive shall have no further rights to any compensation or any other benefits under this Agreement; provided that the provisions of the Restrictive Covenant Agreement shall survive any termination of this Agreement or Executive’s termination of employment hereunder. 
f.    Notice of Termination.  Any purported termination of employment by the Company or by Executive (other than due to Executive’s death) shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 10(i) hereof.  

For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of employment under the provision so indicated.
7.    Restrictive Covenants.  As a condition precedent to the Company’s entry into this Agreement, Executive has executed, or shall execute, the Restrictive Covenants Agreement attached hereto as Exhibit B, the terms of which are incorporated herein by reference.
8.    Indemnification.  Executive shall be entitled to indemnification to the maximum extent permitted by applicable law and the Company’s Articles of Incorporation or Bylaws with terms no less favorable than provided to any other Company executive officer or director and subject to the terms of any separate written indemnification agreement, other than in respect of damages arising as a consequence of Executive’s breach of the representations set forth in Section 10(m) (the “Executive Representations”).  At all times during Executive’s employment, the Company shall maintain in effect a directors and officers liability insurance policy with Executive as a covered officer.   By way of example and for avoidance of doubt, in the event of an action brought against Executive by his former employer (the “Action”) after Executive’s execution of this Agreement, the Company will fully indemnify Executive with respect to the Action, advance Executive expenses for defense fees and costs and will otherwise honor the terms of this Agreement as though no Action had been commenced; provided however, in the event that a court of competent jurisdiction were to find in a final judgment that Executive breached one or more of the Executive Representations (or such final judgment or a settlement between Executive and the former employer acknowledges facts indicating that such Executive Representations were breached), Executive will be liable to  the Company for reimbursement of defense fees and costs advanced and any liability incurred by the Company in connection with such Action relating to, or arising from, Executive’s breach of the Executive Representations, to a maximum reimbursable amount of $500,000.00. 
9.    Arbitration.  To ensure the rapid and economical resolution of disputes that may arise in connection with Executive’s employment with the Company, Executive and the Company agree that any and all disputes, claims, or causes of action, in law or equity, including but not limited to statutory claims, arising from or relating to the enforcement, breach, performance, or interpretation of this Agreement, Executive’s employment with the Company, or the termination of Executive’s employment, shall be resolved, to the fullest extent permitted by law, by final, binding and confidential arbitration in San Antonio, Texas conducted by JAMS, Inc. (“JAMS”) or its successor, under JAMS’ then applicable rules and procedures for employment disputes.  By agreeing to this arbitration procedure, both Executive and the Company waive the right to resolve any such dispute through a trial by jury or judge or by administrative proceeding.  Executive will have the right to be represented by legal counsel at any arbitration proceeding.  The arbitrator shall: (1) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be available under applicable law in a court proceeding; and (2) issue a written statement signed by the arbitrator regarding the disposition of each claim and the relief, if any, awarded as to each claim, the reasons for the award, and the arbitrator’s essential findings and conclusions on which the award is based.  The Company and Executive shall share equally all JAMS arbitration fees.  Each party agrees to pay its own attorneys’ fees, unless statutory law provides for fee shifting; however, the prevailing party in any arbitration will be entitled to seek an award of attorneys fees and costs from the arbitrator.  Nothing in this Agreement shall prevent either Executive or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the 

conclusion of any such arbitration.  Any awards or orders in such arbitrations may be entered and enforced as judgments in the federal and state courts of any competent jurisdiction.
10.    Miscellaneous.
a.    Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Texas, without regard to conflicts of laws principles thereof.  
b.    Entire Agreement/Amendments.  This Agreement contains the entire understanding of the parties with respect to the employment of Executive by the Company and supersedes any prior agreements or understandings (including verbal agreements) between the parties relating to the subject matter of this agreement, including, without limitation, any prior employment agreements or terms summaries.  There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect to the subject matter herein other than those expressly set forth herein.  This Agreement may not be altered, modified, or amended except by written instrument signed by the parties hereto.  
c.    No Waiver.  The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.
d.    Severability.  In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby.
e.    Assignment.  This Agreement, and all of Executive’s rights and duties hereunder, shall not be assignable or delegable by Executive.  Any purported assignment or delegation by Executive in violation of the foregoing shall be null and void ab initio and of no force and effect.  This Agreement may be assigned by the Company to a person which is an affiliate or a successor in interest to substantially all of the business operations of the Company.  Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such affiliate or successor person.
f.    Set Off; Mitigation.  The Company’s obligation to pay Executive the amounts provided and to make the arrangements provided hereunder shall not be subject to set off, counterclaim or recoupment of amounts owed by Executive to the Company or its affiliates.    
g.    Compliance with IRC Section 409A.  
(i)    The parties intend that any amounts payable hereunder that could constitute “deferred compensation” within the meaning of Section 409A of the Internal Revenue Code (“Section 409A”) shall comply with Section 409A, and this Agreement shall be administered, interpreted and construed in a manner that does not result in the imposition of additional taxes, penalties or interest under Section 409A.  The Company and Executive agree to negotiate in good faith to make amendments to the Agreement, as the parties mutually agree are necessary or desirable to avoid the imposition of taxes, penalties or interest under Section 409A.  Notwithstanding the foregoing, the Company does not guarantee any particular tax effect, and 

Executive shall be solely responsible and liable for the satisfaction of all taxes, penalties and interest that may be imposed on or for the account of Executive in connection with the Agreement (including any taxes, penalties and interest under Section 409A), and none of the Company or any subsidiary or affiliate of the Company shall have any liability to Executive with respect thereto.
(ii)    Notwithstanding anything in the Agreement to the contrary, in the event that Executive is deemed to be a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code and Executive is not “disabled” within the meaning of Section 409A(a)(2)(C) of the Internal Revenue Code, no payments in this Agreement that are “deferred compensation” subject to Section 409A shall be made to Executive prior to the date that is six months after the date of Executive’s “separation from service” (as defined in Section 409A) or, if earlier, Executive’s date of death.  Following any applicable six month delay, all such delayed payments shall be paid in a single lump sum on the earliest date permissible under Section 409A that is also a business day.
(iii)    For purposes of Section 409A, each of the payments that may be made under this Agreement shall be deemed to be a separate payment for purposes of Section 409A.  Amounts payable under this Agreement shall be deemed not to be a “deferral of compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulation §§ 1.409A-1(b)(4) (“short-term deferrals”) and (b)(9) (“separation pay plans,” including the exceptions under subparagraph (iii) and subparagraph (v)(D)) and other applicable provisions of Treasury Regulation §§ 1.409A-1 through A-6.
(iv)    With respect to the time of payments of any amounts under the Agreement that are “deferred compensation” subject to Section 409A, references in the Agreement to “termination of employment” (and substantially similar phrases) shall mean “separation from service” within the meaning of Section 409A.
(v)    For the avoidance of doubt, it is intended that any indemnification payment to Executive or expense reimbursement made hereunder shall be exempt from Section 409A.  Notwithstanding the foregoing, if any indemnification payment or expense reimbursement made hereunder shall be determined to be “deferred compensation” within the meaning of Section 409A, then (i) the amount of the indemnification payment or expense reimbursement during one taxable year shall not affect the amount of the indemnification payments or expense reimbursement during any other taxable year, (ii) the indemnification payments or expense reimbursement shall be made on or before the last day of Executive’s taxable year following the year in which the expense was incurred and (iii) the right to indemnification payments or expense reimbursement hereunder shall not be subject to liquidation or exchange for another benefit.
h.    Successors; Binding Agreement.  This Agreement shall inure to the benefit of and be binding upon personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.
i.    Notice.  For the purpose of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier or three days after they have been mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below in this Agreement, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.

If to the Company:
Kinetic Concepts, Inc.  
8023 Vantage Drive 
San Antonio, TX 78230
Attention: General Counsel

If to Executive:
Joe Woody
116 Eliot St.
S. Natick, MA 01760-5507

j.    Cooperation.  Executive shall provide Executive’s reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during Executive’s employment with the Company or its affiliates.  The Company shall reimburse Executive for reasonable expenses he incurs as a result of such cooperation.  This provision shall survive any termination of this Agreement.
k.    Withholding Taxes.  The Company may deduct and withhold from any amounts payable under this Agreement such Federal, state, local, non-U.S. or other taxes as are required or permitted to be withheld pursuant to any applicable law or regulation.  
l.    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.
m.    Representations of Executive.  
(A)    Executive represents, warrants and covenants that as of the date hereof: (i) Executive has the full right, authority and capacity to enter into this Agreement and perform Executive’s obligations hereunder; (ii) except for the Non-Competition, Non-Solicitation, and Confidentiality Agreement dated as of April 29, 2009 (the “Current Employer Agreement”) between Executive and Tyco Healthcare Group LP d/b/a Covidien (the “Current Employer”) with respect to which Executive is making the representation and covenant set forth in clause (B) below, Executive is not bound by any agreement that conflicts with or prevents or restricts the full performance of Executive’s duties and obligations to the Company hereunder during or after the Employment Term and the execution and delivery of this Agreement shall not result in any breach or violation of, or a default under, any existing obligation, commitment or agreement to which Executive is subject; and (iii) Executive has provided Company with his Separation Agreement with Smith and Nephew dated April 30, 2009; and
(B)    Executive represents and warrants as of the date hereof, that Executive’s duties with the Current Employer in the last 24 months have not involved responsibility for any business of the Current Employer which competes with any division of the Company for which Executive will be responsible.  Nor, has Executive 

gained any material Confidential Information (as defined in the Current Employer Agreement) from the Current Employer concerning any division of the Current Employer which competes with any division of the Company for which Executive will be responsible.  Executive’s employment with the Company will not be in connection with any Restricted Product or Service (as defined in the Current Employer Agreement); and
(C)    Executive acknowledges that he is here by instructed not to share with, or divulge to, or use for the Company’s benefit, any Confidential Information (as defined in the Current Employer Agreement) in connection with the performance of his duties to the Company, or otherwise, and shall not do so.
n.    Legal Fees.  The Company will pay for 90% of reasonable legal fees of counsel incurred by Executive in connection with the negotiation and preparation of this Agreement, up to a maximum payment obligation of $75,000.
o.    Confidentiality. Except as required by applicable law, neither party shall (for any reason), directly or indirectly, for himself or itself, as the case may be, or on behalf of any other person or entity, disclose to any person or entity (except to employees or representatives of that party or spouse, legal or financial advisors, as applicable, who need to know such information and who agree to keep such information confidential), the terms of this Agreement.
p.    Survival. The covenants and agreements of the parties set forth in Sections 6, 7, 8, 9, 10(a), 10(c), 10(d), 10(h), 10(i), 10(m), 10(o) and 10(p) are of a continuing nature and shall survive the expiration, termination or cancellation of this Agreement, regardless of the reason therefore and in a manner consistent with the applicable section or subsection.

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

KINETIC CONCEPTS, INC.                JOE WOODY

______________________________________    ____________________________________
By:
Title:10.12 ColleranEmploymentAgreemen

AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This Amended and Restated Employment Agreement (“Agreement”), dated November 4, 2011 is entered into by and between LIFECELL CORPORATION, a Delaware corporation, having its principal place of business at One Millennium Way, Branchburg, New Jersey 08876 (“Employer”), and LISA COLLERAN (“Employee”). 
The Employer desires to continue to employ Executive and to enter into an amended and restated employment agreement embodying the terms of such employment; and
Executive desires to accept such continued employment and enter into such an amended and restated employment agreement.
This Agreement is contingent upon the consummation of the transactions (the “Transactions”) contemplated by the Agreement and Plan of Merger, dated as of July 12, 2011 (the “Merger Agreement”), by and among Kinetic Concepts, Inc., a Texas corporation, Chiron Holdings, Inc., a Delaware corporation, and Chiron Merger Sub, Inc., a Delaware corporation.  As of the consummation of the Transactions (the “Effective Date”), this Agreement will replace and supersede the Employment Agreement between the Company and Executive dated April 7, 2008, as amended  (the “Prior Agreement”).  In the event that the Merger Agreement is terminated without the Transactions being consummated, this Agreement shall be null and void ab initio and have no further force and effect, and the Prior Agreement shall remain in effect in accordance with its terms.
In consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Employer and Employee, intending to be legally bound, hereby agree as follows:
ARTICLE I
EMPLOYMENT; POSITION, DUTIES AND RESPONSIBILITIES

Section 1.01      Employment.  Employer agrees to, and does hereby, continue to employ Employee, and Employee agrees to, and does hereby accept, such continued employment, upon the terms and subject to the conditions set forth in this Agreement.
Section 1.02      Position, Duties and Responsibilities.  During the Term (as defined in Section 2.01 below), Employee shall serve as the President of Employer and shall have such responsibilities, duties and authority consistent with such position as may, from time to time, be assigned by the Board of Directors of Chiron Holdings GP, Inc. (the “Board”) and the Chief Executive Officer of the combined businesses of Kinetic Concepts Inc. and LifeCell Corporation.  Employee shall report to both the Board and the Chief Executive Officer of the combined businesses of Kinetic Concepts Inc. and LifeCell Corporation.  Employee’s employment by Employer shall be full-time and exclusive to Employer, Employee shall serve Employer 

faithfully and to the best of Employee’s ability, and Employee shall devote all of Employee’s business time, attention, skill and efforts exclusively to the business and affairs of Employer (including its affiliates) and the promotion of its interests.
ARTICLE II
TERM; TERMINATION OF PRIOR AGREEMENT

Section 2.01      Term of Employment.  Subject to the consummation of the Transactions contemplated by the Merger Agreement, this Agreement shall be effective as of the Effective Date and shall continue until terminated by either Employer or Employee pursuant to Article IV hereof (the “Term”).
Section 2.02      Termination of Prior Agreement.  As of the Effective Date, Employee acknowledges and agrees that the Prior Agreement shall be terminated in full and that she shall not be entitled to any rights or benefits thereunder, including any rights to claim Good Reason (as defined in Section 4.02(d)(ii) below) with respect to actions, failures or other events that occurred prior to the Effective Date.
ARTICLE III
COMPENSATION AND EXPENSES

Section 3.01      Compensation and Benefits.  For all services rendered by Employee in any capacity during the Term, including, without limitation, services as an officer, director or member of any committee of Employer, or any affiliate or division thereof, Employee shall be compensated as follows (subject, in each case, to the provisions of Article IV below):
(a)    Base Salary.  During the Term, Employer shall pay to Employee a base salary at the rate of $460,000 on an annualized basis (the “Base Salary”). Employee’s Base Salary shall be subject to periodic adjustments (but not decreases) as the Board shall, in its sole discretion, deem appropriate. As used in this Agreement, the term “Base Salary” shall refer to Base Salary as it may be adjusted from time to time. Base Salary shall be payable in accordance with the customary payroll practices of Employer.
(b)    Annual Bonus.  During the Term, Employee also will be eligible to participate in Employer’s incentive compensation plan in place from time to time and applicable to similarly situated employees. Employer reserves the right to amend or rescind the incentive compensation plan at any time in its discretion. In connection with Employee’s participation in the incentive compensation plan, Employee will be eligible to receive an annual discretionary bonus (the “Annual Bonus”).  The amount of the Annual Bonus, if any, will be determined by the Board in its discretion and will be related to the achievement of agreed upon management objectives, which objectives shall be determined by the Board. Employee’s target Annual Bonus 

for calendar year 2011 is 80% of Base Salary on an annualized basis in effect as of the Effective Date and such Annual Bonus for 2011 will otherwise be calculated and determined in accordance with the 2011 bonus objectives, goals and/or matrices in place immediately prior to the Effective Date.  The Annual Bonus, if any, will be determined as of the end of each calendar year during the Term and shall be payable within seventy-five (75) days following the end of such calendar year. Except as otherwise specifically set forth in Section 4.02 below, to be eligible to receive the Annual Bonus, or any portion thereof, Employee must be employed by Employer at the time the amount of the Annual Bonus, if any, is determined.
(c)    Retention Bonus.  Employee acknowledges that the retention bonus described in the Prior Agreement has been paid in full by the Employer as of the Effective Date.
(d)    Equity Compensation.  During the Term, pursuant to the terms and conditions of any equity compensation plan as may be in place on or after the Effective Date, Employee shall be eligible to receive, from time to time, awards in amounts, and subject to such terms, conditions and restrictions, as determined by the General Partner of Chiron Guernsey Holdings L.P. Inc. in its sole discretion.  Awards granted to Employee, if any, will be subject the terms and conditions established within any equity compensation plan of the Employer as may be in place on or after the Effective Date, as applicable, and the award agreement between Employer and Employee that sets forth the terms and conditions of the award (e.g., exercise price, expiration date and vesting schedule of options or stock appreciation rights; the restricted period and/or other restrictions such as performance objectives relating to restricted stock and restricted stock unit awards).
(e)    Benefits.  During the Term, Employee shall be entitled to participate in all Employer’s employee benefit plans and programs (excluding severance plans, if any) as Employer generally maintains from time to time during the Term for the benefit of its employees, in each case subject to the eligibility requirements, enrollment criteria and the other terms and provisions of such plans or programs. Employer may amend, modify or rescind any employee benefit plan or program and/or change employee contribution amounts to benefit costs without notice in its discretion.
(f)    Vacation Sick and Personal Days.  During the Term, Employee shall be entitled to paid sick days and other paid time off in accordance with Employer’s policies with respect to such sick days and other paid time off in place from time to time; provided, however, in no event shall Employee be entitled to fewer than thirty three (33) days of sick and other paid time off per calendar year. 
Section 3.02      Expenses.  Employee shall be entitled to receive reimbursement from Employer for reasonable out-of-pocket expenses incurred by Employee during the Term in connection with the performance of Employee’s duties and obligations under this Agreement, according to Employer’s expense account and reimbursement policies in place from time to time and provided that Employee shall submit reasonable documentation with respect to such expenses.

ARTICLE IV
TERMINATION

Section 4.01      Events of Termination.  This Agreement and Employee’s employment hereunder shall terminate upon the occurrence of any one or more of the following events: 
(a)    Death. In the event of Employee’s death, this Agreement and Employee’s employment hereunder shall automatically terminate on the date of death.
(b)    Disability. In the event Employee becomes Disabled within the meaning of Section 409A(a)(2)(C), Employer may terminate this Agreement and Employee’s employment hereunder upon giving notice of termination to Employee.  
(c)    Termination by Employer for Cause. Employer may, at its option, terminate this Agreement and Employee’s employment hereunder for Cause (as defined below) upon giving notice of termination to Employee. For purposes hereof, “Cause” shall mean Employee’s (i) conviction of, guilty plea to or confession of guilt of a felony or a criminal act involving moral turpitude, (ii) commission of a fraudulent, illegal or dishonest act in respect of Employer or its successors, (iii) willful misconduct or gross negligence that reasonably could be expected to be injurious to the business, operations or reputation of Employer or its successors (monetarily or otherwise), (iv) material violation of Employer’s policies or procedures in effect from time to time, (v) material failure to perform Employee’s duties as assigned to Employee from time to time; provided, however, to the extent such failure is subject to cure, Employee will have a reasonable opportunity to cure such non-performance after written notice thereof, (vi) breach of the terms of the Confidentiality, Assignment of Contributions and Inventions, Non-Competition, and Non-Solicitation Agreement dated April 7, 2008 (the “Restrictive Covenants Agreement”) attached hereto as Exhibit B, or (vii) other material breach of Employee’s representations, warranties, covenants and other obligation under this Agreement; provided, however, to the extent such breach of a covenant or other obligation is subject to cure, Employee will have a reasonable opportunity to cure such breach after written notice thereof.
(d)    Without Cause by Employer. Employer may, at its option, at any time terminate this Agreement and Employee’s employment hereunder for no reason or for any reason whatsoever (other than for Cause or as a result of Employee’s death or Disability) by giving written notice of termination to Employee.
(e)    Termination By Employee.  Employee may terminate this Agreement and Employee’s employment hereunder for any reason or no reason by giving thirty (30) days prior written notice of termination to Employer. Following Employee’s delivery of written notice of termination to Employer, Employer reserves the right to accept Employee’s notice of termination and to accelerate such notice and make Employee’s termination effective immediately, or on any other date prior to Employee’s intended last day of work as Employer deems appropriate.

(f)    Mutual Agreement.  This Agreement and Employee’s employment hereunder may be terminated at any time by the mutual agreement of Employer and Employee.
Section 4.02      Employer’s Obligations Upon Termination.
(a)    Termination by Employer for Cause; Termination by Employee; Mutual Agreement.  In the event of a termination of this Agreement and Employee’s employment hereunder pursuant to Sections 4.01(c), 4.01(e), or 4.01(f) above, then this Agreement and Employee’s employment with Employer shall terminate and Employer’s sole obligation under this Agreement or otherwise shall be to (i) pay to Employee any Base Salary earned, but not yet paid, prior to the effective date of such termination, (ii) pay to Employee any Annual Bonus that was determined, but not yet paid, prior to the effective date of such termination, (iii) reimburse Employee, within 60 days following submission by Employee to the Employer of appropriate supporting documentation, for any unreimbursed business expenses properly incurred by Employee in accordance with Employer policy prior to the date of Employee’s termination; provided that claims for such reimbursement (accompanied by appropriate supporting documentation) are submitted to the Employer within 90 days following the date of Employee’s termination of employment, and (iv) pay and/or provide any amounts or benefits that are vested amounts or vested benefits or that Employee is otherwise entitled to receive under any plan, program, policy or practice (with the exception of those, if any, relating to severance) on the date of termination, in accordance with such plan, program, policy, or practice (clauses (i), (ii), (iii), and (iv) of this sentence are collectively referred to herein as the “Accrued Obligations”).
(b)    Death; Disability. Subject to Section 5.18, in the event of a termination of this Agreement and Employee’s employment hereunder pursuant to Sections 4.01(a) or 4.01(b) above, then this Agreement and Employee’s employment with Employer shall terminate and Employer’s sole obligation under this Agreement or otherwise shall be to (i) pay and/or provide, as applicable, the Accrued Obligations, and (ii) subject to Employee’s or Employee’s estate’s, as applicable, execution, delivery within twenty-one (21) days (or forty-five days (45) for a group termination) following receipt by Employee or Employee’s estate, as applicable, and non-revocation of a general release in the form as attached as Exhibit A hereto (the “Release”); provided, however, the Release will preserve (a) Employee’s rights, if any, to indemnification by Employer, (b) Employee’s rights, if any, as a shareholder of Employer, and (c) Employee’s rights, if any, under the terms of this Agreement that are intended to survive the termination of this Agreement and Employee’s employment hereunder), pay to Employee or Employee’s estate, as applicable, the Prorata Bonus (as defined below). Employer agrees that it shall deliver the Release to Employee (or her estate, if applicable), within five (5) calendar days following the effective date of termination.  The Prorata Bonus shall be payable in a lump sum on the next regular paydate following 60 days after the date of Employee’s termination of employment with Employer; provided, that if such 60 day period begins in one calendar year and ends in a second calendar year, then the Prorata Bonus shall not be paid until the second of such two calendar years (regardless of whether Employee delivers the required Release in the first calendar year or in the second calendar year).  As used in this Agreement: “Prorata Bonus” shall mean the product of: (A) the greater of (x) the Annual Bonus that Employee received attributable to performance during the full fiscal year immediately prior to the date of Employee’s termination 

of employment with Employer, or (y) Employee’s target Annual Bonus for the fiscal year in which the date of termination of Employee’s employment with Employer occurred; and (B) a fraction, the numerator of which is the number of days in the fiscal year in which the date of termination occurs through the effective date of Employee’s termination of employment and the denominator of which is 365.
(c)    Termination by Employer without Cause or by Employee for Good Reason.  Subject to Section 5.18 and subject to Employee’s continued compliance with the provisions of the restrictive covenants contained in the Restrictive Covenants Agreement attached hereto as Exhibit B, in the event of a termination of this Agreement and Employee’s employment hereunder pursuant to Section 4.01(d) (and Section 4.01(e) in the case of a termination of employment for Good Reason) above, then this Agreement and Employee’s employment with Employer shall terminate and Employer’s sole obligation under this Agreement or otherwise shall be to (i) pay and/or provide, as applicable, the Accrued Obligations, and (ii) subject to Employee’s execution, delivery within twenty-one (21) days (or forty-five days (45) for a group termination) following receipt by Employee, and non-revocation of the Release attached hereto as Exhibit A, (a) pay to Employee an aggregate amount equal to the Salary Continuation Payment (as defined below) and the Prorata Bonus (collectively, the “Severance Payment”); provided, however, that if a termination by the Company without Cause or a termination by Employee for Good Reason takes place upon or within 24 months of a Change in-Control (as defined below), the term “Severance Payment” shall mean two times the sum of Employee’s then-current annual base salary and Employee’s then-current annual target bonus), and (b) if Employee timely elects COBRA coverage and (1) provided Employee continues to make contributions to such continuation coverage equal to Employee’s contribution in effect immediately preceding the date of Employee’s termination of employment, Employer shall pay the remaining portion of Employee’s healthcare continuation payments under COBRA for a twelve (12)-month period following the date of Employee’s termination of employment with Employer, and (2) provided that Employee’s COBRA coverage remains in effect, during the period commencing on the twelve (12)-month anniversary and ending on the eighteen (18)-month anniversary of Employee’s termination of employment with Employer, Employer shall absorb the entire cost of Employee’s health care continuation coverage under COBRA.  In the event that Employee becomes eligible to obtain healthcare coverage from a new employer, Employer’s obligation to pay its portion or all, as applicable, of Employee’s healthcare continuation payments shall cease.  Employee understands and acknowledges that Employee is obligated to inform Employer (or its successor) if Employee becomes eligible to obtain healthcare coverage from a new employer before the eighteen (18)-month anniversary of Employee’s termination of employment.  Employer agrees that it shall deliver the Release to Employee within five (5) calendar days following the effective date of termination.  The Severance Payment shall be payable in a lump sum on the next regular paydate 60 days after the date of Employee’s termination of employment with Employer; provided, that if such 60 day period begins in one calendar year and ends in a second calendar year, then the Severance Payment shall not be paid or commence, as applicable, until the second of such two calendar years (regardless of whether Employee delivers the required Release in the first calendar year or in the second calendar year).  As used in this Section 4.02(c), the term “Salary Continuation Payment” shall mean an amount equal to the product of: (i) one (1); and (ii) Employee’s 

annualized Base Salary in effect immediately prior to the date of termination of Employee’s employment with Employer.
(d)    Defined Terms.  As used in this Agreement, the following terms shall have the following meanings:
(i)    “Good Reason” means (A) the failure of Employer or its successor, without Employee’s prior consent, to pay any amounts due to Employee or to fulfill any other material obligations to Employee under this Agreement, other than failures that are remedied by Employer or its successor within 30 days after receipt of written notice thereof given by Employee; (B) an action by Employer or its successor that results in a material diminution, without Employee’s prior consent, in Employee’s duties and responsibilities (other than isolated actions not taken in bad faith and that are remedied by Employer or its successor within 30 days after receipt of written notice therefor given by Employee), as determined by balancing (x) any increase or decrease in the scope of Employee’s duties and responsibilities against (y) any increase or decrease in the relative sizes of the business, activities or functions (or portions thereof) for which Employee has responsibility; provided, however, that none of (I) a change in Employee’s title, or (II) a change in the hierarchy, either individually or in the aggregate, shall be considered Good Reason; (C) any material decrease in Employee’s annualized Base Salary; or (D) any additional move of the offices of Employer or its successor without Employee’s consent such that Employee would be required to commute more than 25 miles more each way than Employee commutes immediately prior to the relocation, after Employer’s scheduled relocation pending on the date hereof has been completed. 
Notwithstanding the foregoing, placing Employee on a paid leave for up to 90 days, pending a determination of whether there is a basis to terminate Employee for “Cause,” shall not constitute a “Good Reason.” Employee shall be deemed to have consented to any act or event that would otherwise give rise to “Good Reason,” unless Employee provides written notice of termination for Good Reason to Employer within ninety (90) days following the action or event constituting Good Reason.
(ii)    “Change in-Control” has the same meaning as “Change of Control” as set forth in 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.  In addition to the foregoing, consummation of the Transactions contemplated by the Merger Agreement shall constitute a “Change in-Control” for purposes of this Agreement.
ARTICLE V
MISCELLANEOUS

Section 5.01      Benefit of Agreement and Assignment.  This Agreement shall inure to the benefit of Employer, its affiliates and their respective successors and assigns (including, without limitation, the purchaser of all or substantially all of the assets) and shall be binding 

upon Employer and its successors and assigns. This Agreement shall also inure to the benefit of and be binding upon Employee and Employee’s heirs, administrators, executors and assigns. Employee may not assign or delegate Employee’s duties under this Agreement, without the prior written consent of Employer.
Section 5.02      Notices.  All notices, requests, demands and other communications required or permitted hereunder shall be given in writing and shall be deemed to have been duly given (i) on the date delivered if personally delivered, (ii) upon receipt by the receiving party of any notice sent by registered or certified mail (first-class mail, postage pre-paid, return receipt requested) or (iii) on the date targeted for delivery if delivered by nationally recognized overnight courier or similar courier service, addressed in the case of Employer to:
      LifeCell Corporation 
One Millennium Way 
Branchburg, New Jersey 08876 
Attn: General Counsel
and, in the case of Employee, to Employee’s most recent address as reflected in Employer’s payroll records.
Any party may notify the other party in writing of the change in address by giving notice in the manner provided in this Section 5.02. Service of process in connection with any suit, action or proceeding (whether arbitration or otherwise) may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Agreement.
Section 5.03      Confidentiality, Assignment of Contributions and Inventions, Non-Competition and Non-Solicitation Agreement.  Employee acknowledges and confirms that the terms of the Restrictive Covenants Agreement, attached hereto as Exhibit B and executed by Employee, are incorporated herein by reference.  The Restrictive Covenants Agreement shall survive the termination of this Agreement and Employee’s employment by Employer for the applicable period(s) set forth therein.
Section 5.04      Entire Agreement.  This Agreement and the Restrictive Covenants Agreement contain the entire agreement of the parties hereto with respect to the terms and conditions of Employee’s employment during the Term and activities following termination of this Agreement and Employee’s employment with Employer and supersedes any and all prior agreements and understandings, whether written or oral, between the parties with respect to the subject matter of this Agreement or the Restrictive Covenants Agreement. Neither this Agreement nor the Restrictive Covenants Agreement may be changed or modified except by an instrument in writing, signed by both Employer and Employee.
Section 5.05      Indemnification; D&O Insurance.  Employer shall indemnify Employee against all claims arising out of Employee’s actions or omissions occurring during Employee’s employment with Employer to the fullest extent provided (A) by Employer’s Certificate of Incorporation and/or Bylaws, (B) under Employer’s Directors and Officers 

Liability and general insurance policies, and (C) under the Delaware General Corporation Law, as each may be amended from time to time. Employer agrees that it will continue to maintain Directors and Officers Liability and general insurance policies to fund the indemnity described above in the same amount and to the same extent it maintains such coverage for the benefit of its other officers and directors.
Section 5.06      Representation and Warranties.  Employee represents and warrants to Employer that (i) Employee has the legal capacity to execute and perform this Agreement, (ii) this Agreement and the Restrictive Covenants Agreement are valid and binding agreements enforceable against Employee according to their terms, and (iii) the execution and performance of this Agreement by Employee does not violate or conflict with the terms of any existing agreement or understanding to which Employee is a party or by which Employee may be bound.
Section 5.07      No Attachment. Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation or to execution, attachment, levy, or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect; provided, however, that nothing in this Section 5.07 shall preclude the assumption of such rights by executors, administrators or other legal representatives of Employer or his estate and their assigning any rights hereunder to the person or persons entitled thereto.
Section 5.08      Source of Payment.  All payments provided for under this Agreement shall be paid in cash from the general funds of Employer. Employer shall not be required to establish a special or separate fund or other segregation of assets to assure such payments, and, if Employer shall make any investments to aid it in meeting its obligations hereunder, Employee shall have no right, title or interest whatever in or to any such investments except as may otherwise be expressly provided in a separate written instrument relating to such investments.  Nothing contained in this Agreement, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship, between Employer and Employee or any other person. To the extent that any person acquires a right to receive payments from Employer hereunder, such right, without prejudice to rights which employees may have, shall be no greater than the right of an unsecured creditor of Employer.
Section 5.09      Limitation as to Amounts Payable.  Notwithstanding anything set forth in this Agreement to the contrary, if any payment or benefit Employee would receive from Employer (or its successor) (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be reduced to the Reduced Amount.  The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and  local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Employee’s receipt, on an after-tax basis, of the greater 

amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax.  If a reduction in payments or benefits (or a cancellation of the acceleration of vesting of stock options or equity awards) constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, such reduction and/or cancellation of acceleration shall occur in the order that provides the maximum economic benefit to Employee. In the event that acceleration of vesting of stock option or equity award compensation is to be reduced, such acceleration of vesting also shall be canceled in the order that provides the maximum economic benefit to Employee. For greater clarity, for purposes of such reductions, if applicable, cash payments will be reduced prior to the reduction of any equity acceleration, and any later cash payments will be reduced prior to the reduction of any earlier cash payments.  The accounting firm engaged by Employer for general audit purposes as of the day prior to the Effective Date shall perform the foregoing calculations and shall make any and all determinations regarding the order in which payments or benefits shall be reduced, if applicable. If the accounting firm so engaged by Employer is unwilling or unable to make such determinations, Employer shall appoint a nationally recognized accounting firm to make the determinations required under this Section 5.09.  Employer shall bear all expenses with respect to the determinations by such accounting firm required to be made under this Section 5.09. The accounting firm engaged to make the determinations under this Section 5.09 shall provide its calculations, together with detailed supporting documentation, to Employer and Employee as soon as practicable after the date on which Employee’s right to a Payment is triggered (if requested at that time by Employer (or its successor) or Employee) or such other time as requested by Employer or Employee.  If the accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish Employer (or its successor) with an opinion reasonably acceptable to Employee that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the accounting firm made under this Section 5.09 shall be final, binding, and conclusive upon Employer (or its successor) and Employee.
Section 5.10      No Waiver.  The waiver by other party of a breach of any provision of this Agreement shall not operate or be construed as a continuing waiver or as a consent to or waiver of any subsequent breach hereof.
Section 5.11      Headings.  The Article and Section headings in this Agreement are for the convenience of reference only and do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.
Section 5.12      Governing Law and Dispute Resolution.  Any and all actions or controversies arising out of this Agreement, Employee’s employment or the termination hereof or thereof, including, without limitation, tort claims, shall be construed and enforced in accordance with the internal laws of the State of New Jersey, without regard to the choice of law principles thereof.  Except with respect to Employer’s and Employee’s right to seek injunctive or other equitable relief (including, without limitation, pursuant to the Restrictive Covenants Agreement), any dispute, controversy or claim based on, arising out of or relating to the interpretation and performance of this Agreement, Employee’s employment or any termination hereof or thereof or any matter relating to the foregoing shall be solely submitted to and finally 

settled by arbitration by a single arbitrator in accordance with the then-current rules of the American Arbitration Association (“AAA”), including without limitation any claims for discrimination under any applicable federal, state or local law or regulation.  Any such arbitration shall be conducted in the New Jersey office of the AAA located closest to Employer’s New Jersey office.  The single arbitrator shall be appointed from the AAA’s list of arbitrators by the mutual consent of the parties or, in the absence of such consent, by application of any party to the AAA.  A decision of the arbitrator shall be final and binding upon the parties.  The parties agree that this Section 5.12 shall be grounds for dismissal of any court action commenced by either party with respect to this Agreement, other than (i) post-arbitration actions seeking to enforce an arbitration award and (ii) actions seeking appropriate equitable or injunctive relief, including, without limitation, pursuant to the Restrictive Covenants Agreement.  Employer shall pay the fees of the arbitrator and each party shall be responsible for its own legal fees, costs of its experts and expenses of its witnesses.  The arbitrator’s remedial authority shall equal the remedial power that a court with competent jurisdiction over the parties and their dispute would have.  Any award rendered shall be final, binding and conclusive (without the right to an appeal, unless such appeal is based on fraud by the other party in connection with the arbitration process) upon the parties and any judgment on such award may be enforced in any court having jurisdiction, unless otherwise provided by law.  Employer and Employee acknowledge that it is the intention of the parties that this Section 5.12 shall apply to all disputes, controversies and claims, including, without limitation, any rights or claims Employee may have under the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, the Equal Pay Act, the New Jersey Law Against Discrimination, the Conscientious Employee Protection Act, the New Jersey Civil Rights Act, and all other federal, state or local laws, rules or regulations relating to employment discrimination or otherwise pertaining to this Agreement, Employee’s employment or termination thereof.  Employer and Employee knowingly and voluntarily agree to this arbitration provision and acknowledge that arbitration shall be instead of any civil litigation, meaning that Employee and Employer are each waiving any rights to a jury trial.
Section 5.13      Validity.  The invalidity or enforceability of any provision or provisions of this Agreement or the Restrictive Covenants Agreement shall not affect the validity or enforceability of any other provision or provisions of this Agreement or the Restrictive Covenants Agreement, which shall remain in full force and effect.
Section 5.14      Employee Withholdings and Deductions.  All payments to Employee hereunder shall be subject to such withholding and other employee deductions as may be required by law.
Section 5.15      Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.
Section 5.16      Agreement to Take Actions.  Each party to this Agreement shall execute and deliver such documents, certificates, agreements and other instruments, and shall 

take all other actions, as may be reasonably necessary or desirable in order to perform his/her or its obligations under this Agreement.
Section 5.17      Survival.  The terms of Section 4.02 and Article V of this Agreement and the terms of the Restrictive Covenants Agreement shall survive the termination of this Agreement and Employee’s employment hereunder.
Section 5.18      Compliance with IRC Section 409A. The parties intend that any amounts payable hereunder that could constitute “deferred compensation” within the meaning of Section 409A of the Internal Revenue Code (“Section 409A”) shall comply with Section 409A, and this Agreement shall be administered, interpreted and construed in a manner that does not result in the imposition of additional taxes, penalties or interest under Section 409A.  The Employer and Employee agree to negotiate in good faith to make amendments to the Agreement, as the parties mutually agree are necessary or desirable to avoid the imposition of taxes, penalties or interest under Section 409A.  Notwithstanding the foregoing, the Employer does not guarantee any particular tax effect, and Employee shall be solely responsible and liable for the satisfaction of all taxes, penalties and interest that may be imposed on or for the account of Employee in connection with the Agreement (including any taxes, penalties and interest under Section 409A), and none of the Employer or any subsidiary or affiliate of the Employer shall have any liability to Employee with respect thereto.
Notwithstanding anything in the Agreement to the contrary, in the event that Employee is deemed to be a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code and Employee is not “disabled” within the meaning of Section 409A(a)(2)(C) of the Internal Revenue Code, no payments in this Agreement that are “deferred compensation” subject to Section 409A shall be made to Employee prior to the date that is six months after the date of Employee’s “separation from service” (as defined in Section 409A) or, if earlier, Employee’s date of death.  Following any applicable six month delay, all such delayed payments shall be paid in a single lump sum on the earliest date permissible under Section 409A that is also a business day.
For purposes of Section 409A, each of the payments that may be made under this Agreement shall be deemed to be a separate payment for purposes of Section 409A.  Amounts payable under this Agreement shall be deemed not to be a “deferral of compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulation §§ 1.409A-1(b)(4) (“short-term deferrals”) and (b)(9) (“separation pay plans,” including the exceptions under subparagraph (iii) and subparagraph (v)(D)) and other applicable provisions of Treasury Regulation §§ 1.409A-1 through A-6.
With respect to the time of payments of any amounts under the Agreement that are “deferred compensation” subject to Section 409A, references in the Agreement to “termination of employment” (and substantially similar phrases) shall mean “separation from service” within the meaning of Section 409A.
For the avoidance of doubt, it is intended that any indemnification payment to Employee or expense reimbursement made hereunder shall be exempt from Section 409A.  

Notwithstanding the foregoing, if any indemnification payment or expense reimbursement made hereunder shall be determined to be “deferred compensation” within the meaning of Section 409A, then (i) the amount of the indemnification payment or expense reimbursement during one taxable year shall not affect the amount of the indemnification payments or expense reimbursement during any other taxable year, (ii) the indemnification payments or expense reimbursement shall be made on or before the last day of Employee’s taxable year following the year in which the expense was incurred and (iii) the right to indemnification payments or expense reimbursement hereunder shall not be subject to liquidation or exchange for another benefit.

IN WITNESS WHEREOF, Employer and Employee have duly executed this Agreement as of the date first written above. 
EMPLOYER: 
 
LIFECELL CORPORATION
		
	By: 
	 
Name:         
Title:    General Counsel 

EMPLOYEE: 
 
By:         
              Lisa Colleran

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