Document:

10.7 Colleran Separation Agreement

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April 12, 2013

Lisa Colleran
LifeCell Corporation
95 Corporate Drive
Bridgewater, NJ 08807
RE:    Separation and Release Agreement
Dear Ms. Colleran:

This letter ("Release Agreement") will confirm the terms of your separation from LifeCell Corporation (the "Company"), an affiliate of Chiron Guernsey Holdings L.P. Inc. (the “Partnership”).  
Termination of Employment
1.Your last day of employment with the Company as President and Chief Executive Officer of the Company shall be April 12, 2013 (the “Separation Date”).  As of the Separation Date, you will no longer be an employee, officer or director of the Company or any of its parents, subsidiaries or affiliates, and you hereby resign, effective immediately, from all such positions that you hold with respect to the Company or any of its parents, subsidiaries or affiliates.
Separation Payment and Benefits 
2.Regardless of whether or not you sign this Release Agreement, and provided that you do not engage in any conduct constituting Cause under the Amended and Restated Employment Agreement between you and the Company, dated November 4, 2011 (the “Employment Agreement”), a copy of which is attached here to as Exhibit A, you will be paid (i) your base salary earned through the Separation Date but not yet paid, (ii) any Annual Bonus (as defined in your Employment Agreement) that was determined, but not yet paid, prior to the Separation Date, and (iii) an amount, within 60 days following submission by you to the Company of appropriate documentation, equal to any and all reasonable and necessary unreimbursed business expenses incurred prior to the Separation Date in accordance with the Company's policies and procedures, including reimbursement for (x) tax preparation fees previously submitted to the Company of approximately $5,000.00 and (y) legal fees incurred in connection with your counsel's review of the Partnership's Executive Equity Incentive Plan prior to the Separation Date, in an amount not to exceed $13,600.00; provided that claims for such reimbursements (accompanied by supporting documentation) are submitted to the Company within 90 days following the Separation Date.  In addition, except as otherwise provided in Paragraphs 13 and 14, you will be paid/or provided any amounts or benefits that are vested amounts or benefits or that you are otherwise entitled to receive under any plan, program, policy or practice (with the exception of those, if any, relating to severance) on your Separation Date, in accordance with such plan, program, policy, or practice and your rights with respect to any equity securities of the Partnership will continue to be governed by the terms of the Chiron Guernsey Holdings L.P. Inc. Amended and Restated Limited Partnership Agreement, dated as of November 4, 2011, and any relevant documentation relating to such equity securities.  Further, as described in Paragraph 3(b), you will be offered the opportunity to receive continuation coverage in the 

Company's medical plan pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) following the Separation Date.  Continuation coverage shall in all respects be subject to the requirements, conditions and limitations of COBRA and of the Company's medical plan, which may be amended from time to time.

3.You will be entitled to the benefits outlined below, provided that: (i) this Release Agreement becomes effective (pursuant to Paragraph 12 below); (ii) you comply with the terms and conditions of this Release Agreement; and (iii) you continue to comply with your existing Confidentiality, Assignment of Contributions and Inventions, Non-Competition, and Non-Solicitation Agreement (a copy of which is attached hereto as Exhibit B (the “Covenants Agreement”)).  All of the benefits outlined below are subject to compliance with Section 409A of the Internal Revenue Code of 1986 (pursuant to Section 5.18 of your Employment Agreement).

(a)The Company agrees to pay you severance in an amount equal to $2,300,000 (the “Severance Payment”); and

(b)If you timely elect COBRA coverage and (1) provided that you continue to make contributions to such coverage equal to your contribution in effect immediately prior to your Separation Date, the Company agrees to pay the remaining portion of your healthcare continuation payments under COBRA for a twelve (12)-month period following your Separation Date and (2) provided that your COBRA coverage remains in effect during the period commencing on the twelve (12)-month anniversary and ending on the eighteen (18)-month anniversary of your Separation Date, the Company will absorb the entire cost of your health care continuation coverage under COBRA.  In the event that you become eligible to obtain healthcare coverage from a new employer, the Company's obligation to pay its portion or all, as applicable, of your healthcare continuation payments shall cease.  You understand and acknowledge that you are obligated to inform the Company (or its successor) if you become eligible to obtain healthcare coverage from a new employer before the eighteen (18)-month anniversary of your Separation Date.  
The Severance Payment shall be payable in a lump sum on the next regular paydate 60 days after your Separation Date; 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 you deliver this Release Agreement in the first calendar year or in the second calendar year).
4.Aside from the payments and benefits expressly set forth in Paragraphs 2 and 3 above, you shall not receive any other payments or compensation from the Company.  Further, except as set forth above with respect to your rights under COBRA, as of the Separation Date, you shall not be eligible to participate or continue to participate in any employee benefit plans or compensation arrangements of the Company or any of the other Releasees (as defined below) or otherwise be entitled to any payment, perquisite or fringe benefit.
Release
5.You, for yourself and successors, assigns, executors and administrators, now and forever hereby release and discharge the Company and the Partnership, together with each of their respective past and present parents, subsidiaries, and affiliates, together with each of their officers, directors, stockholders, partners, members, employees, agents, representatives and attorneys, and each of their subsidiaries, affiliates, estates, predecessors, successors, and assigns (collectively, the “Releasees”) from any and all rights, claims, charges, actions, causes of action, complaints, sums of money, suits, debts, covenants, contracts, agreements, promises, obligations, damages, demands or liabilities of every kind whatsoever, in law or in equity, whether known or unknown, suspected or unsuspected (collectively, "Claims") which you or your executors, administrators, successors or assigns ever had, now have or may 

hereafter claim to have by reason of any matter, cause or thing whatsoever:  (i) arising from the beginning of time up to the date you sign this Release Agreement including, but not limited to, (a) any such Claims relating in any way to your employment relationship with the Company or any of the Releasees, or (b) any such Claims arising under any federal, local or state statute or regulation, including, without limitation, the Age Discrimination in Employment Act of 1967, the Fair Labor Standards Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, the Sarbanes-Oxley Act of 2002, the Family Medical Leave Act of 1993, the New Jersey Family Leave Act, the New Jersey Law Against Discrimination, the New Jersey Workers' Compensation Law, the New Jersey State Wage Payment Law, the New Jersey Conscientious Employee Protection Act, the New Jersey Worker Freedom from Employer Intimidation Act, and/or any other applicable local or state law, each as amended; (ii) relating to the termination of your employment relationship with the Company or any of the Releasees; (iii) arising under or relating to the Employment Agreement, including, but not limited to, the right to receive any payments from the Company under Section 4.02(c) of the Employment Agreement with respect to the cost of COBRA continuation coverage; (iv) relating to wrongful employment termination; or (v) arising under or relating to any policy, agreement, understanding or promise, written or oral, formal or informal, between the Company and any of the Releasees and you; provided, however, that notwithstanding the foregoing, nothing contained in this Paragraph 5 shall in any way release or discharge:  (A) your rights to indemnification with respect to third-party claims under Section 5.05 of the Employment Agreement; (B) any rights you may have to vested payments or benefits under Company equity compensation or pension plans; (C) your right to bring any Claim for breach of this Release Agreement by the Company; or (D) any Claims you may have that cannot be waived under applicable law (collectively, the “Excluded Claims”).  You acknowledge and agree that, except with respect to Excluded Claims, the Company and the other Releasees have fully satisfied any and all obligations whatsoever owed to you arising out of your employment with the Company or any of the Releasees, and that no further payments or benefits are owed to you by the Company or any of the Releasees. 

6.You understand and agree that, except for the Excluded Claims, you have knowingly relinquished, waived and forever released any and all rights to any personal recovery in any action or proceeding that may be commenced on your behalf arising out of the aforesaid employment relationship or the termination thereof, including, without limitation, claims for backpay, front pay, liquidated damages, compensatory damages, general damages, special damages, punitive damages, exemplary damages, costs, expenses and attorneys' fees.

7.By signing this Release Agreement, you represent and warrant that you have not commenced or joined in any Claim against any of the Releasees arising out of or relating to any of the matters set forth in Paragraph 5 above.
Confidentiality, Restrictive Covenants and Cooperation.
8.Notwithstanding any provision of this Release Agreement to the contrary, you hereby reaffirm, and agree to comply with, all of your obligations set forth in the Employment Agreement, including the Covenants Agreement, including, without limitation, your obligations concerning confidentiality and the return of Company and customer property (Section 1), non-competition (Section 5), non-solicitation (Section 5), and non-disparagement (Section 6) and agree that the obligations and representations set forth therein shall remain in full force and effect and such paragraphs are incorporated by reference as if restated herein.  

9.Consistent with your continuing obligations following the termination of your employment with the Company as set forth in Section 1(g) of the Covenants Agreement, simultaneous with your execution of this Release Agreement, you shall acknowledge to the Company, in writing and under oath, 

in the form attached hereto as Exhibit C, that you have complied with, and will continue to comply with, for the applicable period set forth therein, all of your obligations under the Covenants Agreement.

10.Upon reasonable request and subject to your other commitments, you agree that you will, at the Company's request, use reasonable efforts to cooperate with the Company in any regulatory or legal matter that involves the Company, or its then-current or former officers, directors, employees or agents about which you may have particular knowledge or information. To the maximum extent reasonably practicable, you may provide such cooperation telephonically. Your cooperation may include, but not be limited to, the following: (a) appearing for an interview; (b) answering all questions fully and truthfully: (c) appearing for depositions and/or at trial related to any claim, action or litigation in which the Company becomes a party; and (d) meeting with representatives of the Company to assist in preparation for such depositions and/or trials.  In the event that travel (which travel shall be at a level commensurate with your previous employment level) or other expenses are incurred by you in connection with such cooperation or in the event your testimony is required, the reasonable travel costs and out-of-pocket expenses in connection therewith shall be paid or promptly reimbursed by the Company.  In consideration for the cooperation services under this Section 10, the Company will pay you for your time at a rate of $450 per hour.
Consideration and Revocation Period; Voluntary Waiver
11.You acknowledge that you have been provided the opportunity to consult with an attorney of your choosing about this Release Agreement prior to signing this Release Agreement.  You further represent that you understand and agree that you are under no obligation to consent to this Release Agreement, and you have entered into this Release Agreement freely and voluntarily.  You fully understand the terms of this Release Agreement and that by entering into this Release Agreement you are receiving benefit to which you would not otherwise be entitled.

12.You further acknowledge and agree to the following:  (i) you shall have twenty-one (21) days from the date of this Release Agreement to consider this Release Agreement, although you may sign it sooner; (ii) once you sign this Release Agreement, you shall have seven (7) days from the date of execution to revoke your consent to this Release Agreement; (iii) any such revocation shall be made in writing so as to be received by John T. Bibb, Executive Vice President, General Counsel, Kinetic Concepts, Inc., 12930 I-10 West, San Antonio, TX 78249, by hand or overnight courier prior to the eighth (8th) day following your execution of this Release Agreement; and (iv) if no such revocation occurs, this Release Agreement shall become effective on the eighth (8th) day following your execution of this Release Agreement.  In the event that you fail to execute and deliver this Release to the Company within the twenty-one (21) day period referred to in clause (i) above or you revoke your consent, this Release Agreement shall be null and void, and the Company shall not be obligated to provide you with the payment and benefits set forth in Paragraph 3 of this Release Agreement.  
Equity Provisions
13.You currently hold 314,497.60 Class A-2 Interests of the Partnership, previously acquired pursuant to that certain Management Unit Subscription Agreement dated as of November 7, 2011 (the “Executive Class A-2 Interests”).  You hereby agree to sell to the Partnership and the Partnership hereby agrees to purchase from you, all of the Executive Class A-2 Interests (314,497.60) at a purchase price of $5.00 per Class A-2 Interest, for an aggregate purchase price of $1,572,488.00 (the “Purchase Price”), in full satisfaction of all rights and obligations of the Partnership with respect to such Executive Class A-2 Interests.  The Partnership shall deliver to you the Purchase Price, as soon as practicable after the day on which this Release Agreement becomes effective (pursuant to Paragraph 12).  The Purchase Price will be payable by wire transfer in immediately available funds to the account designated by you on Annex 1 hereto.

14.You currently hold 425,000.003 Profits Interest Units that were issued under the Partnership's Executive Equity Incentive Plan (the “PIU Plan”), and which have become vested pursuant to the PIU Plan and its related award agreement (the “Vested PIUs”).  Subject to your continued compliance with your Covenants Agreement, the Partnership agrees that it will exercise its call right with respect to the Vested PIUs pursuant to Section VI.F. of the PIU Plan during the applicable repurchase periods (i.e., during the six month period commencing on the later of (x) the date on which you were no longer employed by the Company and (y) the six month anniversary of the date such Vested PIUs became so vested), and subject to the terms and conditions, provided therein.  For the avoidance of doubt, the purchase price for each Vested PIU will be equal to the Fair Market Value (as defined in the PIU Plan) per Vested PIU at the date of purchase.
No Admission of Wrongdoing
15.You acknowledge that neither the offer to you of this Release Agreement nor the payment and benefits set forth herein are intended to, or shall be construed as, an admission of liability or of any improper conduct on the part of the Company or any other Releasee.
Governing Law; Dispute Resolution
16.This Release Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New Jersey, without reference to its choice of law rules.  The parties hereby acknowledge that the provisions concerning dispute resolution set forth in Section 5.12 of the Employment Agreement shall apply and are hereby incorporated by reference herein. 

17.No waiver by either party of any breach by the other party of any condition or provision of this Release Agreement to be performed by such other party shall be deemed a waiver of any other provision or condition at the time or at any prior or subsequent time.  This Release Agreement and the provisions contained in it shall not be construed or interpreted for or against either party because that party drafted or caused that party's legal representative to draft any of its provisions.
Enforceability
18.In the event that any one or more of the provisions of this Release Agreement are held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remainder hereof will not in any way be affected or impaired thereby and any such provisions will be enforced to the fullest extent permitted by law.
Successors and Assigns
19.This Release Agreement shall inure to the benefit of and be binding upon the Company and any successor organization which shall succeed to the Company by merger or consolidation or operation of law, or by acquisition of assets of the Company.
Entire Agreement
20.The terms described in this Release Agreement set forth the entire agreement and understanding of the parties and supersede all prior agreements, arrangements and understandings, written or oral, between the parties, except for certain provisions of the Covenants Agreement, as specifically provided in Paragraphs 8 and 9 above as well as Sections 5.03 and 5.12 of the Employment Agreement.  You acknowledge and agree that you are not relying on any representations or promises by the Company or any other Company Releasees, other than those set forth herein, with regard to the subject matter, basis or effect of this Release Agreement or otherwise.  This Release Agreement may not 

be altered or modified other than in a writing signed by you and an authorized representative of the Company.

[Signature Page Follows]

IN WITNESS WHEREOF, Lisa Colleran, a duly authorized representative of the Company, and solely for purposes of Section 13 and 14 of this Release Agreement, the Partnership, have executed this Release Agreement on the dates set forth below.  

LIFECELL CORPORATION    

By:    /s/ John T. Bibb        
John T. Bibb

Date:   April 12, 2013

Agreed to and Accepted
(Solely for purposes of Sections 13 and 14):

CHIRON GUERNSEY HOLDINGS L.P. INC.

By: Chiron Holdings GP, Inc., its General Partner

By:    /s/ William J. Gumina        
Name: William J. Gumina
Title:   Director

    
Agreed to and Accepted By:

/s/ Lisa Colleran            
Lisa Colleran

Date:  April 30, 201310.8 Amended Equity Incentive Plan

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

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

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“Employer” means, with respect to any Participant, the Partnership or its Affiliate for which the Participant provides employment or other services constituting Employment.
“Employment” and “termination of employment” and similar references mean, respectively, service with and termination of service from the Partnership and its Affiliates.  For this purpose, “service” includes service as an employee, partner, consultant or other independent contractor, but, with respect to non-employee services, only for periods of a continuing significant service relationship.  All determinations regarding employment and service (for purposes of administering the Plan or any Profits Interest Unit Award Agreement) shall be made by the General Partner in its sole discretion.  In addition, the General Partner shall, in its reasonable discretion, determine whether or not a leave of absence is a termination of employment for purposes of administering the Plan or any Profits Interest Unit Award Agreement. In the case of a Divestiture, termination of employment without Cause shall be deemed to include the Participant’s ceasing to be employed by the Issuer or its Affiliates due to the Participant’s continuing employment with the purchaser (or an affiliate thereof) involved in such Divestiture.
“Fair Market Value” shall mean the fair market value per Profits Interest Unit as determined by the General Partner in good faith based upon the amount such Profits Interest Unit would have received as a distribution in the event of a liquidation of the Partnership as of the date of determination, provided that, for the avoidance of doubt, no valuation discount (including without limitation for lack of marketability or for minority interest) shall be taken into account when such determination is made and provided further that, for purposes of Section VI(F) of the Plan, if such determination is disputed by a Participant, if requested by the Participant in writing within 5 days of the General Partner’s communication of such determined fair market value, an independent internationally recognized expert financial advisory or valuation expert selected by the General Partner and reasonably acceptable to the Participant will make the determination based upon the same methodology (a “Third Party Valuation”).  The Partnership will bear the cost of the Third Party Valuation; provided that if the fair market value as determined by the Third Party Valuation is within 110% of the fair market value as initially determined by the General Partner, the Participant will bear the full cost of such Third Party Valuation.
“Financing Restrictions” means any applicable restrictions under the financing agreement to which the Partnership or any of its subsidiaries and Affiliates are a party or any other material contract to which the Partnership or any of its Affiliates are a party which preclude the payment to Participants in cash upon the exercise of a Call Right or a Put Right.

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“General Partner” means the General Partner of the Partnership.
“Good Reason” means one or more of the following: (i) the material reduction of Participant’s duties and/or responsibilities, which is not cured within 30 days after the Participant provides written notice to the Employer; provided, however, it shall not be considered Good Reason if, upon or following a Change in Control, the Participant’s duties and responsibilities remain the same as those prior to a Change in Control but the Participant’s title and/or reporting relationship is changed; (ii) the material reduction of Participant’s base salary (which is not cured within 30 days after the Participant provides written notice), other than across-the-board decreases in base salary applicable to all executive officers of the Employer; or (iii) the relocation of the Participant to a business location in excess of 50 miles from the Participant’s place of employment on the Date of Grant (which is not cured within 30 days after the Participant provides written notice).  To be considered a resignation from employment on an account of Good Reason, the Participant must provide written notice to the Employer (stating that Participant believes one or more of the Good Reason conditions described above exists) within 30 days following the initial existence of such condition, and must resign within 30 days following the Employer’s failure to cure such condition.
“Immediate Family” means a Participant’s spouse, children or grandchildren (including adopted children, stepchildren and grandchildren).
“Initial Public Offering” has the meaning set forth in the LP Agreement.
“KCI” shall mean Kinetic Concepts, Inc., and any successor thereto.
“LifeCell” shall mean LifeCell Corporation, and any successor thereto.
“LP Agreement” means the Amended and Restated Limited Partnership Agreement of the Partnership, dated as of November 4, 2011, as may be amended and/or restated from time to time.
“Management Case Plan” shall mean the business projections included in data room files 4.1.2 (5 Year BS Projection), 4.1.3 (5 Year CF Projections) and 4.1.5 (5 Year Income Statement Projections) as provided to the Sponsors by KCI in connection with the Merger Agreement.
“Marketable Securities” shall mean securities that (i) are freely traded without restriction of volume or manner of sale under Rule 144 of the Securities Act of 1933, (2) are listed on any of the New York Stock Exchange, Nasdaq Stock Market or another United States or foreign traded public exchange reasonably acceptable to the Issuer and (3) 

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have a sufficient daily trading volume, as determined by the General Partner in its sole discretion, to permit resales of such securities in such time period, volume and manner as the General Partner deems appropriate without a discount.
“Merger” means the consummation of the transactions contemplated by the Merger Agreement.
“Merger Agreement” means the Agreement and Plan of Merger, dated as of July 12, 2011 by and among Kinetic Concepts, Inc., a Texas corporation, Chiron Holdings, Inc., a Delaware corporation and Chiron Merger Sub Inc., a Delaware corporation.
“Participant” means any Person who is eligible for, and selected by the General Partner, in its sole discretion, to receive, an award of Profits Interest Units under the Plan.
“Partner” means a Partner as defined in the LP Agreement.
“Person” means an individual, a corporation, a company, a voluntary association, a partnership, a joint venture, a limited liability company, a trust, an estate, an unincorporated organization, a governmental authority or other entity.
“Prior Plan” means the Chiron Guernsey Holdings L.P. Inc. Executive Equity Incentive Plan, which was amended and restated as evidenced by this Plan.
“Profits Interest Unit Award Agreement” means any written agreement, contract, or other instrument or document (which may include provisions of an employment agreement to which the Partnership or any Affiliate is a party) in a form approved by the General Partner, in its sole discretion, which evidences any Profits Interest Units awarded hereunder or otherwise subject to the terms of the Plan, which may, but need not, be executed or acknowledged by a Participant.
“Profits Interest Units” has the meaning set forth in the LP Agreement.
“Promissory Notes” shall mean promissory notes bearing interest at a rate equal to the prime rate in effect at the time of issuance of the promissory note and paying out pari passu in the event the Financing Restrictions permit partial payments when more than one Participant is due payment pursuant to any applicable Put Right or Call Right and including mandatory repayment (i) to the fullest extent as and when repayment becomes permissible under the Financing Restrictions; (ii) in an amount equal to any Partner distributions under the LP Agreement (as and when distributions become payable to Partners thereunder); and (iii) in full, upon the occurrence of a Change of Control.

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

“TSS” shall mean the Therapeutic Support Systems business of KCI.

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

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

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

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may establish conditions under which restrictions on Profits Interest Units shall lapse over a period of time or according to such other criteria as the General Partner deems appropriate in its sole discretion.
B.    Number of Profits Interest Units.  The General Partner shall determine the number of Profits Interest Units to be issued or transferred and the restrictions applicable to such award.
C.    Requirement of Employment.  Except as otherwise provided in a Profits Interest Award Agreement or pursuant to Article XI, if a Participant’s Employment is terminated, the Profits Interest Unit Award Agreement shall terminate as to all Profits Interest Units covered by the award which remain unvested and, in the event of a termination of Employment for Cause, those that are already vested, and those Profits Interest Units shall be forfeited without consideration, as set forth in the Profits Interest Unit Award Agreement.  The General Partner may, however, provide for complete or partial exceptions to this requirement as it deems appropriate in its sole discretion.
D.    Restrictions on Transfer.  A Participant may not Transfer Profits Interest Units, except as permitted under an applicable Profits Interest Unit Award Agreement.
E.    Non-Voting.  The Profits Interest Units shall not have any voting rights.
F.    Right to Repurchase Profits Interest Units.  
(a) Subject to XI.E. of the Plan, the General Partner shall have the right, but not the obligation, in its sole discretion, to during the six month period commencing on the later of (x) the date on which such Participant is no longer employed by the Partnership and its Affiliates and (y) the six month anniversary of the date such Participant’s Profits Interest Units became vested, make or cause to be made a payment to the Participant in consideration for the cancellation of any one or more of the vested Profits Interest Units then held by the Participant (with the amount of the vested Profits Interest Units then held by the Participant being in all events determined after giving effect to any vesting that occurs co-incident with the date of the termination of Employment of such Participant).  
(b) The repurchase price per Profits Interest Unit shall equal the Fair Market Value on the date of purchase; provided that, in the event of a termination of a Participant’s Employment for Cause, any vested Profits Interest Units will be forfeited without consideration and deemed to have been reacquired by the Partnership for $0.00.

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

VIII.     General Provisions.
A.    No Rights to Awards/Prior Awards.  No Person shall have any claim to receive any award under the Plan.  There is no obligation for uniformity of treatment of Participants regarding the number of Profits Interest Units awarded or the manner – directly or indirectly, in accordance with the provisions of Article IX of the Plan – in which awards 

11

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

12

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

13

any restatement of, the LP Agreement in accordance with the terms of such agreements.  Nothing in the Plan or in any Profits Interest Unit Award Agreement shall require the consent of any holder of any Profits Interest Unit to any amendment to or restatement of the LP Agreement.
P.    Conflict Between or Among the Plan, the LP Agreement, the LP Agreement and/or the Related Award Agreements.  The Plan is subject to the LP Agreement, the terms and provisions of which are hereby incorporated herein by reference.  In the event of a conflict between any term or provision contained herein or therein, the LP Agreement shall govern and prevail.  In the event of a conflict between any term or provision contained herein or in any Profits Interest Unit Award Agreement, this Plan shall govern and prevail.
IX.    Future Award of Additional Classes of Units.  The General Partner reserves the right, from time to time in the future, and in its sole discretion, to award additional classes of equity interests to Participants, and such additional classes of equity interests shall constitute Profits Interest Units (as defined in the LP Agreement) for purposes of the LP Agreement.  In that event, the terms of the Plan shall be applied without the need of any further amendments thereto (and without any need to obtain the consent of any existing Participants), as if such additional classes of equity were Profits Interest Units described hereunder, except as the applicable award agreements with respect to such additional classes of equity may otherwise provide.  In furtherance hereof, the General Partner may approve a Profits Interest Unit Award Agreement with respect to such additional classes of equity.
X.    Term of the Plan.
A.    Effective Date.  The Plan, when approved by the General Partner, shall be effective as of the date of adoption (the “Effective Date”).
B.    Expiration Date.  No award shall be made under the Plan after the tenth anniversary of the Effective Date.  Unless otherwise expressly provided in the Plan or in an applicable Profits Interest Unit Award Agreement, any Profits Interest Unit awarded hereunder or otherwise subject hereto may, and the authority of the General Partner to amend, alter, adjust, suspend, discontinue or terminate any conditions or rights under any such Profits Interest Unit shall, continue after the tenth anniversary of the Effective Date.
XI.    Special Divestiture Provisions.
A.    Effective Date.  Notwithstanding any other provision of this Article XI, the provisions of this Article XI shall only apply to a Divestiture occurring on or after May 2, 2013 (the “Special Divestiture Provision Effective Date”) and shall only be applicable to Participants who were employed by their Employer as of the Special Divestiture Provision Effective Date.  Except as otherwise provided in any Profits Interest Unit Award Agreement entered into after the Special Divestiture Provision Effective Date, the provisions of this Article XI shall be deemed incorporated by reference into all Profits Interest Unit Award Agreements issued under the Plan, including those issued under the Prior Plan.

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B.    Definitions.  As used in this Article XI only, the following terms shall have the meanings set forth below:
“Business Sale” shall mean, whether through one transaction or a series of transactions, (i) a sale of (x) more than 50% of the equity interests or (y) substantially all the assets of KCI or LifeCell to a Person or group of Persons who (a) were not Requisite Limited Partners (as defined in the LP Agreement) at any time prior to such sale and (b) if such Person or group of Persons is an entity, the Requisite Limited Partners do not own in excess of 50% of the voting power of such Person or group of Persons and do not otherwise have the power to direct or cause the direction of the management or policies of such Person or group of Persons, whether through ownership of voting securities, by contract or otherwise; and (ii) an Initial Public Offering of LifeCell or KCI but only if, and when, there is a decrease in direct or indirect ownership by the Partnership to the extent that LifeCell or KCI ceases to be an Affiliate of the Partnership; provided, that the event described in (i)(x) above shall not constitute a Business Sale until such time as the Requisite Limited Partners do not otherwise have the power to direct or cause the direction of the management or policies of KCI or LifeCell, as applicable, whether through ownership of voting securities, by contract or otherwise.
“Divestiture” shall mean, with respect to a given Participant, the consummation of a divestiture of the business of the Partnership for which the Participant performs services (either LifeCell or KCI), in connection with a Business Sale.
C.    Deemed Termination of Employment.  If a Divestiture occurs when a Participant is employed by the Employer, then, solely for purposes of the Plan, immediately upon the closing of such Divestiture, such Participant will be deemed to have experienced a termination of employment by the Employer without Cause.  In addition, the below special provisions will apply, as set forth in Articles XI.D. and XI. E. hereof.
D.    Special Vesting Provisions. 
(a)    Time Vesting Units.  With respect to the Time Vesting Units, if:
(i)    the Participant was employed in connection with the business involved in the Divestiture (x) at the time of such Divestiture or (y) within 105 days prior to such Divestiture and ceased to be employed with such business in connection with a termination of such employment by the Partnership and its Affiliates without Cause or by the Participant for Good Reason;
(ii)    the Participant uses his or her best efforts to effect the Divestiture; and

15

(iii)    either (x) the Participant is not made a Comparable Offer (as defined below) or (y) such Participant receives a Comparable Offer and continues employment with the successor to such divested business (the “Successor”) for a reasonable transition period of up to one year, to the extent required by the Successor (the “Required Employment Period”) (such Participant who meets (i), (ii) and (iii) above, a “Qualifying Divested Employee”);
then, in the case of XI.D.(a)(iii)(x) above, such Qualifying Divested Employee’s Time Vesting Units will fully vest upon the closing of the Divestiture and, in the case of XI.D.(a)(iii)(y) above, such Qualifying Divested Employee’s Time Vesting Units will fully vest at the conclusion of the Required Employment Period, or, if earlier, upon such Qualifying Divested Employee’s termination of employment with the Successor (other than a termination by the Company for Cause or Qualifying Divested Employee’s voluntary resignation).
(b)    Performance Vesting Units.  With respect to the Performance Vesting Units, if the Participant is a Qualifying Divested Employee, then such Performance Vesting Units will remain outstanding (i.e., waiver of the continuing service requirement) and vest as and when such Performance Vesting Units otherwise would have vested in accordance with the terms of the applicable Profits Interest Unit Award Agreement without regard to any further service requirements, until the final disposition by the Sponsors of all of their Class A-1 Interests in the Partnership.  Any unvested portion of the Performance Vesting Units which thereafter remain unvested will be forfeited.
For purposes of the foregoing, “Comparable Offer” shall mean, an offer of employment to Participant with the Successor on terms including comparable position, at least the same base salary, and at least the same target annual bonus amount opportunity.
E.    Right to Repurchase Profits Interest Units.  Notwithstanding anything in Article VI.F(a) or (b) to the contrary, upon and following a Divestiture, the following provisions shall apply with respect to Profits Interests Units held by a Qualifying Divested Employee.  The General Partner shall have the right, but not the obligation, in its sole discretion, to make or cause to be made a payment to the Participant in consideration for the cancellation of any one or more of the vested Profits Interest Units then held by the Participant (with the amount of the vested Profits Interest Units then held by the Participant being in all events determined after giving effect to any vesting that occurs as a result of the application of this Article XI of the Plan) only after the final disposition by the Sponsors of their Class A-1 Interests in the Partnership.  The repurchase price per Profits Interest Unit 

16

shall equal the Fair Market Value on the date of purchase.  The remaining provisions of Article VI.F. shall continue to apply.
*    *    *    *    *

This Plan was adopted by the Board of Directors on May 2, 2013.

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