Document:

Exhibit 10.1 to Medtronic, Inc. Form 10-Q for the Quarter Ended 10-27-2006

EXHIBIT 10.1

AMENDMENT NO. 1 TO

INDEMNIFICATION TRUST AGREEMENT

AMENDMENT NO. 1 TO INDEMNIFICATION TRUST AGREEMENT, dated September 5, 2006 (this “Amendment”), among Medtronic, Inc., a Minnesota corporation (“Grantor” or the “Company”), and, Wells Fargo Bank, National Association, as trustee (the “Trustee”), and Terrance L. Carlson, as the representative of the Beneficiaries (the “Beneficiaries’ Representative”).

PRELIMINARY STATEMENT

Grantor established a trust to be a non-exclusive source of indemnification for the Grantor’s directors and officers who are eligible for such indemnification as stated in the Trust (as defined in the Indemnification Trust Agreement (the “Agreement”) dated April 29, 2004 among Grantor, the Trustee and the Beneficiaries’ Representative) as it is in effect from time to time.  Grantor desires to increase the amount of the Indemnity Trust to a total amount not to exceed $100 million.

NOW, THEREFORE, the Agreement is hereby amended for the purposes and upon the terms and conditions hereinafter stated, and Grantor, the Trustee and the Beneficiaries’ Representative on behalf of the representatives agree as follows: 

1.            Amendment to Section 1.1.    Section 1.1 of the Agreement entitled “Certain Defined Terms” is hereby amended as follows:

1.1         The definition of the term “Agreement” as set forth in Section 1.1 of the Agreement is hereby amended to read in its entirety as follows:

 

“Agreement” has the meaning given in the Preamble, as amended from time to time.

 

	
             
 	
            1.2
 	
            Section 1.1 is also amended to include the following definition:
 

 

“Fund Amount” has the meaning specified in Section 4.2.

 

2.            Restatement of Section 4.2.   Section 4.2 of the Agreement entitled “Opening Amount” is hereby replaced in its entirety by the following text:

4.2          Opening Amount; Fund Amount.   Concurrently with the establishment of the Trust, Grantor is delivering to the Trustee the sum of $50 million in cash (the “Opening Amount” and, subject to an increase of such designated amount by amendment to this Agreement, the “Fund Amount”), the receipt of which is hereby acknowledged by the Trustee, to be held IN TRUST in accordance with the terms of this Agreement.  From time to time, Grantor and the Beneficiaries’ 

Representative may amend the Trust to provide for an increased amount to thereafter be the Fund Amount.  Concurrently with such amendment or soon thereafter, Grantor shall deliver to the Trustee additional amounts in cash such that the value of the Trust shall on or about the date of such amendment equal the Fund Amount, to be held IN TRUST in accordance with the terms of this Agreement.  The Company is responsible for maintaining the amount of the Trust Fund through additional contributions thereto, if necessary, made within ten (10) Business Days of each December 31 during the term of the Trust, commencing with December 31, 2004, so that the market value of the Trust Fund as of each December 31 (together with the amount of additional contribution, if any, made with respect to such December 31) shall be no less than the Fund Amount of the Trust, provided, however, that the Company shall have no obligation to contribute to the Trust for so long as the Trust Fund is within 5% of the Fund Amount.  Nothing contained herein shall preclude Grantor from making additional contributions of funds from time to time to the Trustee to be held IN TRUST as part of the Trust Fund.

3.            Restatement of Section 4.4.   Section 4.4 of the Agreement entitled “Income Surpluses” is hereby replaced in its entirety by the following text:

4.4          Income Surpluses.   If (i) the market value of the Trust Fund on any December 31, during the term of the Trust, commencing with December 31, 2004, shall exceed the greater of (x) the Fund Amount in place at such time, and (y) the amount held in the Trust Fund immediately following the then most recent additional contribution to the Trust Fund, if any, made by Grantor pursuant to the last sentence in Section 4.2 (such excess amount is referred to as the “Income Surplus”), and (ii) there shall not be any claim then pending upon the Trust for an Expense Advance or indemnification of a Loss as of such December 31, the Trustee shall pay to Grantor from the Trust Fund on the tenth (10th)
Business Day following such December 31, an amount equal to such Income Surplus.  If as of any December 31, there is either (1) no Income Surplus, or (2) a claim pending upon the Trust for an Expense Advance or indemnification of a Loss, no amount shall be paid to Grantor under this Section 4.4 in respect of such December 31.

4.            Total Amount.   The Fund Amount under the Agreement is hereby increased to $100 million.

5.            Restatement of Section 8.6.   Section 8.6 of the Agreement entitled “Notices, Consents and Other Communications” is hereby replaced in its entirety by the following text:  

8.6          Notices, Consents and Other Communications.   All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and signed for by the party addressed, on the date of such delivery, (ii) if sent by facsimile, on the date sent, or (iii) if mailed by domestic certified or registered mail with postage prepaid, on the third Business Day after the date postmarked.

 

2

Notices shall be given as follows:

 

Trustee:

 

Wells Fargo Bank, N.A.

Sixth and Marquette Avenue

Minneapolis, MN 55479

Attention:  Steven R. Gubrud

Telephone:  (612) 667-9090

Facsimile:  (612) 667-2160

 

Grantor:

 

Medtronic, Inc. 

710 Medtronic Parkway

Minneapolis, MN 55432-5604

Mail Stop:  LC300

Attention:  Chief Financial Officer

Telephone:  (763) 514-4000

Facsimile:  (763) 572-5474

 

Beneficiaries’ Representative:

 

Terrance L. Carlson (or his/her successor as the General Counsel of Grantor)

c/o Medtronic, Inc.

710 Medtronic Parkway

Minneapolis, MN 55432-4000

World Headquarters LC400

Telephone:  (763) 514-4000

Facsimile:  (763) 572-5459

 

6.            Capitalized Terms.   All capitalized terms used in this Amendment and not defined herein shall have the same meaning as used in the Agreement.

 

7.            The Agreement.   Except as expressly amended by this Amendment, the Agreement shall continue in full force and effect in accordance with its terms. 

 

8.            Governing Law; Other Provisions.   This Amendment shall be governed by and its provisions construed and enforced in accordance with the laws of the State of Minnesota.  Unless otherwise provided in this Amendment, the provisions of Article VIII of the Agreement shall apply to this Amendment, mutatis mutandi.

 

3

 

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

 

	
             
 	
            WELLS FARGO BANK, NATIONAL ASSOCIATION
 
	
             
 	
             
 
	
             
 	
            (“Trustee”)
 
	
             
 	
             
 
	
             
 	
            By:
 	
            /s/ Steven Gubrud
 
	
             
 	
             
 	
            Name:  Steven Gubrud

Title:  Vice President
 
	
             
 	
             
 
	
             
 	
            MEDTRONIC, INC. 
 
	
             
 	
             
 
	
             
 	
            (“Grantor”)
 
	
             
 	
             
 
	
             
 	
            By:
 	
            /s/ Gary L. Ellis
 
	
             
 	
             
 	
            Name:  Gary L. Ellis 

Title:  Chief Financial Officer
 
	
             
 	
             
 
	
             
 	
            /s/ Terrance L. Carlson
 
	
             
 	
            Terrance L. Carlson, as the Beneficiaries’ Representative
 

 

 

4[TRANSPERFECT LOGO]

City of New York, State of New York, County of New York

I, Amy DiTrani, hereby certify that the following is, to the best of my
knowledge, ability and belief, a true and accurate translation of the document
`September 25 Stock Purchase Order' from Spanish into English.

/s/Amy DiTrani
-----------------------------------
Amy DiTrani

Sworn to before me this
1st day of December, 2006.

/s/Paul D. Ralston
-----------------------------------
Signature, Notary Public

           PAUL D. RALSTON
   Notary Public, State of New York
           No. 01RA6023867
      Qualified in Queens County
    Commission Expires May 2, 2007

Stamp, Notary Public

       THREE PARK AVENUE, 39TH FLOOR, NEW YORK, NY 10016 T 212.689.5555 F
                       212.689.1059 WWW.TRANSPERFECT.COM

<PAGE>

                                 [ACCIONA LOGO]

BANCO SANTANDER CENTRAL HISPANO S.A.
Avenida de Cantabria s/n
Ciudad Grupo Santander
28660, Boadilla del Monte Madrid
Attn.:  Mr. Vasco Duarte

                                                     Madrid, September 25, 2006

                              STOCK PURCHASE ORDER

         Gentlemen,

         1. As discussed, we are instructing you, as indicated in this document
and if the objectives indicated therein are reached, to purchase shares of
ENDESA, S.A., (hereinafter "ENDESA"), in a number equivalent to 10% of its
capital at a price of 32 euro per share, for our subsidiary FINANZAS DOS S.A.,
(hereinafter "FINANZAS"), by the procedure ("book building") that you have
identified as appropriate.

         2. In order to identify the ENDESA shares available for purchase at the
indicated price, you will carry out the "book building" procedure by contacting
entities that, according to your knowledge of the market, may hold significant
packages of said shares, and will ask them to make selling bids indicating the
number of shares they want to sell at the price indicated. In the process of
identifying possible sellers, you may act through brokers, provided they are
subject to the same rules (especially concerning confidentiality) set forth
herein for the performance of the "book building" and paying their possible
costs yourselves.

         In addition, the "book building" procedure will comply with the
following rules:

         a.    It will take place between 5:40 today and 8:30 on September 26 at
               the latest. However, by agreement between you and us the term may
               be extended, but not beyond 12:00 on the 26th.

         b.    The  communication  with the possible  sellers to request selling
               bids will be based on the  messages  presented in annex 1 to this
               letter, without transmitting  substantial  information other than
               that indicated therein. In particular, you will not reveal, under
               any  circumstances,  the fact that you act by  mandate of ACCIONA
               S.A. or any directly or indirectly identifying data, beyond those
               indicated in annex 1.

         c.    Orders will no longer be received when:

              (i)     The  term  indicated  for  this  activity,  including  its
                      extension, if any, has lapsed; or

              (ii)    We so request when, in our opinion,  certain circumstances
                      occur that  indicate  that it is  impossible to reach said
                      volume  or  endanger  the

                                                                     [initials]

<PAGE>

[ACCIONA LOGO]

                      adequate completion of the operation  mandated,  including
                      serious  risk  that  the  principal's  identity  would  be
                      revealed  or may  become  known to the  market  before the
                      successful completion of the operation.

         3. Once the "book  building"  process is  successfully  completed,  the
orders accepted will give rise to the execution of the corresponding  operations
between  FINANZAS and the sellers,  the same day, with brokerage of the purchase
by  Santander   Investment  Bolsa  Sociedad  de  Valores  S.A.,  for  subsequent
liquidation through the usual procedures.

         4. If the "book  building" is not  successfully  completed - due to the
fact the volume  required is not reached at the  intended  price,  or due to any
circumstance that makes us stop it, or for any other reason - this order will be
null and void.

         5. If the operation is  successfully  completed with the performance of
the  services  indicated  in this  mandate  letter,  you  will  be paid  the fee
indicated in annex 2, which will be paid in the manner indicated therein.

         6. The shares purchased by FINANZAS will be deposited in the securities
account we intend to open with you under conditions not yet agreed,  and will be
subject to the  commitments  and rights set forth in the loan  contract  already
agreed upon, which we intend to sign tomorrow.

         7. We mention  for the record that the  acquisition  of the shares does
not imply any violation of the law whatsoever.

         Furthermore, we indicate that the acquisition referred to in this
letter is made by FINANZAS directly without any agreement, pact or
understanding, verbal or written, express or implicit, with any third party not
belonging to the ACCIONA group in connection with said acquisition or with the
ongoing takeover bid on ENDESA shares.

         8. If selling  bids are received in the "book  building"  process for a
volume higher than 10%, you will inform us of this circumstance.

         9. The essential element of this mandate is that, except if required by
law, the name of the  principal and of the group to which it belongs will remain
confidential  until the operation is  successfully  completed and even after the
termination  of the  mandate,  if the planned  acquisition  does not take place.
Until the  operation  is  announced to the market,  if it is  completed,  by the
corresponding relevant fact, or should it not be successfully completed, you may
reveal said identity only when  required by applicable  legislation  and even in
this  case you must  warn us in  advance  of the  need to do so,  provided  such
legislation allows it.

<PAGE>

[ACCIONA LOGO]

         10. This mandate letter is governed by Spanish common law. In the event
of discrepancies or disagreement  concerning its provisions,  the parties submit
to the Jurisdiction of the Judges and Courts of Madrid.

         Sincerely,

         ACCIONA, S.A.
         For

         /s/ Jose Manuel Entrecanales Domecq.
         Mr. Jose Manuel Entrecanales Domecq.

                                                                     [initials]

<PAGE>

[ACCIONA LOGO]

                                     ANNEX I

-        The operation  consists of the building of a book ("book  building") of
         selling bids on ENDESA shares for 10% of its capital.

-        The buyer is a first rate Spanish company in the industrial  sector. It
         does not have agreements to buy shares with any of the parties involved
         in the  Takeover  Bid. It does not intend to carry out a Takeover  Bid,
         but to take a strategic position.

-        Price: 32 euro/share.

-        Bid  presentation  period:  from  5:40 on the 25th to 8:30 on the 26th,
         except in the event of extension or early termination.

-        The bids may not be  conditioned  upon  anything  but the price and the
         sale of the total number of shares included in it.

-        Once the book is closed,  it will be  determined  whether the objective
         has been met (10% at 32  euro/share)  and, if so, the operation will be
         confirmed to the bidders for its execution.

-        The client  reserves the right to terminate the process in the event of
         risk of disclosure of its identity before the closing of the operation.

                                                                     [initials]

<PAGE>

ANNEX II. - SUCCESS FEE

0.8% of the amount of the purchase of 10% of the capital of Endesa, accrued only
in the event of success.

This fee will be accrued after settling the expenses of the operation and after
the presentation of the respective invoice.

If said 10% is not reached, no fee will be accrued.

                                                                     [initials]

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