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/lib/live/boot/0001-init-vars.sh is in open-infrastructure-system-boot 20161101-lts2-1.

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The actual contents of the file can be viewed below.

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#!/bin/sh

mountpoint="/live/medium"
alt_mountpoint="/media"
LIVE_MEDIA_PATH="live"
HOSTNAME="host"
custom_overlay_label="persistence"
persistence_list="persistence.conf"

mkdir -p "${mountpoint}"
mkdir -p /var/lib/live/boot