Document:

LLC MEMBERSHIP
INTEREST PURCHASE AGREEMENT 

        THIS
LLC MEMBERSHIP INTEREST PURCHASE AGREEMENT, (this “Agreement”) is entered
into effective as of the 6th day of September, 2007 (the “Effective Date”) by
and among Medical Resources, LLC, a Florida limited liability company, (“MR”),
Walter Janke and Lalita Janke, (together, the “Jankes”) and PrimaCare
Corporation, a Florida corporation (“Buyer”). MR, the Jankes and Buyer are
hereinafter referred to jointly as the “Parties” and singularly as
“Party”. 

        WHEREAS,
Buyer desires to purchase from the Jankes and the Jankes desire to sell to Buyer
membership interests representing 100% of the membership interests in MR. 

        NOW,
THEREFORE, in consideration of the foregoing and the representations, warranties,
covenants, agreements and conditions set forth in this Agreement, and intending to be
legally bound, the parties agree as follows: 

	1.  	Purchase
and Sale of Membership Interests.

	 	(a) 	Agreement.
At the Closing, the Jankes shall sell to Buyer, and Buyer                     shall
purchase from the Jankes in accordance with the terms and conditions
                    contained in this Agreement: 

	 	(i) 	The
Jankes’ membership interests in MR (the “MR Membership
                    Interests”), which consists of 100% of all of MR’s issued
and                     outstanding membership interests;  

	2.  	Purchase
Price; Payment

	 	(a) 	Purchase
Price. The aggregate purchase price (the “Purchase                     Price”)
for the Membership Interests shall be an amount equal to 5 times                     MR’s
earnings before interest, taxes, depreciation and amortization                     (“EBITDA”),
which shall be calculated based upon an audited review of                     MR’s
financial statements for the 24 month period from January 1, 2008
                    through December 31, 2009. Notwithstanding the foregoing, the
Purchase Price                     shall be no less than Fifteen Million Dollars
($15,000,000) and no more than                     Thirty Million Dollars ($30,000,000). 

	 	(b) 	Payment.
The Purchase Price shall be paid as follows: 

	 	(i) 	At
the Closing, Buyer shall deliver 28 million IWWI shares (as defined below) as
                    an estimate of the Purchase Price to Escrow Agent pursuant to an
Escrow                     Agreement by and among the Jankes, Buyer, MR, and Escrow Agent
(the “Escrow                     Agreement”). The form of the Escrow Agreement
shall be agreed upon by all                     Parties within 30 days from the date of
this Agreement.  

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	 	(ii) 	All
payments under this Section 2 shall be made in the form of shares of
                    common stock of Inform Worldwide Holdings, Inc. (the “IWWI Shares”).
                    The number of the IWWI Shares to be placed into Escrow shall be
determined as                     follows:  

	 	(1) 	The
Purchase Price divided by the 90days Weighted Average Price of the
                    IWWI Shares on the Trading Day immediately preceding the Closing
Date.  

The “Weighted Average
Price” shall be established by the dollar volume-90 days weighted average
price for IWWI Shares in the over-the-counter market on the electronic bulletin board for
such security during the period beginning at 9:30:01 a.m., New York Time (or such other
time as such market publicly announces is the official open of trading), and ending at
4:00:00 p.m., New York Time (or such other time as such market publicly announces is the
official close of trading) as reported by Bloomberg. All such determinations to be
appropriately adjusted for any stock dividend, stock split, stock combination or other
similar transaction during the applicable calculation period. 

The “Trading Day” means any
day on which the IWWI Shares are traded on the over-the-counter market on the electronic
bulletin board. 

	 	(c) 	When
the Purchase Price can be computed finally under the provisions of Section
          2(a), an appropriate adjustment shall be made to the number of IWWI Shares
          delivered to the Escrow Agent. If Escrow Agent has received more shares than as
          is required to satisfy the Purchase Price, the Escrow agent shall deliver to
          Buyer such excess shares. If the Purchase Price requires the Buyer to pay
          additional shares, Buyer shall promptly deliver the proper number of shares
          needed so that the Purchase Price can be satisfied to the Jankes. 

	 	(d) 	Excluded
Assets. At the Closing, title to the 2004 Kia Sedona Automobile           License Tag
No. 4531DX. Additionally, if MR receives from America’s Health           Choice
Medical Plans, Inc. any additional compensation due to CMS retroactive
          adjustments for the period prior to the Closing Date, fifty percent (50%) of
the           amounts received shall be payable to the Jankes when received by MR, as an
          addition to the Purchase Price. Further, at the time of Closing, MR shall
assign           to the Jankes all of its causes of action which it may hold against Dr.
Edward           Sollie and/or Molina Healthcare, Inc. 

	3.  	Representations
and Warranties of MR and Jankes. 

The Jankes, jointly and severally,
and MR, jointly and severally with the Jankes, make the following representations and
warranties to Buyer, each of which is true and correct on the date hereof and shall
survive the consummation of the transactions contemplated hereby. 

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	 	(a) 	Organization
and Qualification. MR is a limited liability company duly                organized
and in active status under the laws of the State of Florida. MR has                all
requisite power and authority to carry on its business as currently
               conducted and is duly qualified to transact business in each jurisdiction
in                which the failure to be so qualified would reasonably be expected to
have a                material adverse effect on MR’s business, properties or
financial condition                (a “Material Adverse Effect”). 

	 	(b) 	Capitalization.
As of the Closing, the outstanding equity of MR will                consist of 100%
membership interest held by Jankes. There are no outstanding                rights,
options, warrants, preemptive rights, rights of first refusal or similar
               rights for the purchase or acquisition from MR of any equity interest in
MR. All                outstanding equity interests of MR have been issued in compliance
with state and                federal securities laws. 

	 	(c) 	Subsidiaries.
Except as provided on Schedule 3(c), and except as                to Clinicare of
Broward, LLC (formerly known as Family Futures, LLC), MR does                not
presently own or control, directly or indirectly, any interest in any other
               corporation, association, or other business entity. MR is not a
participant in                any joint venture, partnership, or similar arrangement. 

	 	(d) 	Valid
Issuance of Membership Interests. The Membership Interests shall be
               duly authorized, validly issued, fully paid and non-assessable and will be
free                of restrictions on transfer directly or indirectly created by MR
other than                restrictions on transfer under this Agreement and under
applicable state and                federal securities laws. 

	 	(e) 	Jankes.
Each of the Jankes is a competent adult and has full power, legal                right
and authority to execute and deliver this Agreement and the other
               documents and instruments to be executed and delivered by each of the
Jankes                pursuant hereto and to carry out the transactions contemplated
hereby and                thereby. Each of the Jankes has, and at the Closing Buyer will
receive, good and                marketable fee title to the MR Membership Interests,
free and clear of all                liens. 

	 	(f) 	Authority.
The execution and delivery of this Agreement and the other                documents and
instruments to be executed and delivered by MR or the Jankes                pursuant
hereto and the consummation of the transactions contemplated hereby and
               thereby have been duly authorized by MR and the Jankes. No other or
further act                or proceeding on the part of MR or its members (including the
Jankes in their                personal capacities) is necessary to authorize this
Agreement or the other                documents and instruments to be executed and
delivered by MR or the Jankes                pursuant hereto or the consummation of the
transactions contemplated hereby and                thereby. MR and the Jankes have
delivered to Buyer true, correct and complete                copies of all consents,
resolutions and other documents necessary to duly                authorize the execution
and delivery of this Agreement and the other documents                and instruments to
be executed and delivered by MR or the Jankes pursuant hereto                and the
consummation of the transactions contemplated hereby and thereby. This
               Agreement constitutes, and when executed and delivered, the other
documents and                instruments to be executed and delivered by MR or the Jankes
pursuant hereto                will constitute, valid and binding agreements of MR and/or
the Jankes, as the                case may be, enforceable in accordance with their
respective terms. 

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	 	(g) 	Governmental
Consents. Except as provided on Schedule 3(g), no                consent,
approval, order or authorization of, or registration, qualification,
               designation, declaration or filing with, any federal, state or local
               governmental authority on the part of MR is required in connection with
the                offer, sale or issuance of the Membership Interests. 

	 	(h) 	Litigation.
Except as provided on Schedule 3(h), there are no                actions, suits,
proceedings or investigations pending or, to the best of                MR’s
knowledge, threatened before any court, administrative agency or other
               governmental body against MR. MR is not a party or subject to, and none of
its                assets is bound by, the provisions of any order, writ, injunction,
judgment or                decree of any court or government agency or instrumentality. 

	 	(i) 	Employees.
Except as provided on Schedule 3(i), MR is not a party                to or bound
by any currently effective employment contract, deferred                compensation
agreement, bonus plan, incentive plan, profit sharing plan,                retirement
agreement or other employee compensation agreement or arrangement                with any
collective bargaining agent. Except as provided on Schedule 3(i), upon                the
closing of this transaction, Buyer shall have the right to renegotiate all
               employment contracts to which MR is a party. 

	 	(j) 	Intellectual
Property. To their knowledge MR has sufficient title to and                ownership
of, or other rights to use, all trade secrets, and, to its knowledge,
               copyrights, information, proprietary rights, trademarks, service marks and
trade                names in each case necessary for its business as now conducted
without any                material conflict with or infringement of the rights of
others. Except as set                forth on Schedule 3(k), there are no material
outstanding options, licenses, or                agreements of any kind relating to the
foregoing, nor is MR bound by or a party                to any material options, licenses
or agreements of any kind with respect to the                trademarks, service marks,
trade names, copyrights, trade secrets, licenses,                information, proprietary
rights and processes of any other person or entity. MR                has not received
any written, or to its knowledge, oral communications alleging                that MR has
violated or, by conducting its business as proposed, would violate                any of
the trademarks, service marks, trade names, copyrights or trade secrets                or
other proprietary rights of any other person or entity. 

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	 	(k) 	Absence
of Certain Events. Except as and to the extent set forth in Schedule 3(k),
since July 31, 2007, there has not been: 

	 	(i) 	No
Adverse Change. Any material adverse change in the conduct, financial
               condition, assets, liabilities, business, prospects or operations of MR.  

	 	(ii) 	No
Damage. Any material loss, damage or destruction, whether covered by
               insurance or not, relating to or affecting the business, assets or
liabilities                of MR.  

	 	(iii) 	No
Increase in Compensation. Any increase in the compensation, salaries,
               commissions or wages payable or to become payable to any employees or
agents of                MR, including any bonus or other employee benefit granted, made
or accrued in                respect of such employees or agents, or any increase in the
number of such                employees or agents.  

	 	(iv) 	No
Labor Disputes. Any labor dispute or disturbance relating to or
               affecting MR, other than routine individual grievances that are not
material to                the conduct, financial condition, assets, Liabilities,
business, prospects or                operations of MR.  

	 	(v) 	No
Distributions. Any declaration, setting aside or payment of any
               dividend or other distribution in respect of MR’s capital stock; any
               redemption, purchase or other acquisition by MR of any capital stock of
MR, or                any security relating to such capital stock; or any other payment
of any kind to                any of MR’s members, except for regular payments of
base salary, benefits                under employee agreements applicable to MR employees
generally and reimbursement                of expenses in accordance with MR’s
expense reimbursement policy.  

	 	(vi) 	No
Increase in Affiliate Obligations. Any increase in MR’s
               investment in or receivable from any Affiliate of MR.  

	 	(vii) 	No
Disposition of Property. Any sale, lease, grant or other transfer or
               disposition of any assets of MR, except for the sale of Inventory items in
the                ordinary course of business.  

	 	(viii) 	No
Indebtedness. Any indebtedness for borrowed money incurred, assumed or
               guaranteed by MR.  

	 	(ix) 	Loans
and Advances. Any loan or advance made by MR to any person or                entity,
other than advances made to MR’s employees in the ordinary course                of
business for travel and entertainment in accordance with past practice.  

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	 	(x) 	Credit.
Any grant of credit by MR to any customer (including any                distributor) of
MR on terms or in amounts more favorable than those that have                been
extended to such customer in the past, any other change in the terms of any
               credit heretofore extended by MR or any other change of MR’s policies
or                practices with respect to the granting of credit.  

	 	(xi) 	Discharge
of Obligations. Any discharge, satisfaction or agreement to                satisfy or
discharge any liability of MR, other than the discharge or                satisfaction in
the ordinary course of business of current liabilities and                current
liabilities incurred since July 31, 2007 in the ordinary course of
               business.  

	 	(xii) 	Deferral
of Liabilities. Any deferral, extension or failure to pay any of                the
liabilities of MR as when the same become due or any allowance of the level
               of the liabilities of MR to increase in any material respect or any
prepayment                of any of the liabilities of MR.  

	 	(xiii) 	Accounting
Principles. Any material change in MR’s financial or tax
               accounting principles or methods, except to the extent required by GAAP.  

	 	(xiv) 	No
Unusual Events. Any other event or condition not in the ordinary
               course of business that relates to or affects the business or assets of
MR.  

	 	(l) 	Compliance
with Other Instruments. Except as set forth on Schedule 3(l):                (i) MR
is not in violation or default of any provision of its Certificate of
               Formation or its Operating Agreement, each as in effect immediately prior
to the                Closing; (ii) MR is not in violation or default of any provision of
any material                instrument, mortgage, deed of trust, loan, contract,
commitment, judgment,                decree, order or obligation to which it is a party
or by which it or any of its                properties or assets are bound; and (iii) MR
is not in violation or default of                any provision of any federal, state or
local statute, rule or governmental                regulation. The execution, delivery
and performance of and compliance with this                Agreement and the sale of the
Membership Interests will not result in any such                violation, be in conflict
with or constitute, with or without the passage of                time or giving of
notice, a default under any such provision, require any                consent or waiver
under any such provision (other than any consents or waivers                that have
been obtained), or result in the creation of any mortgage, pledge,                lien,
encumbrance or charge upon any of the properties or assets of MR pursuant
               to any such provision. 

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	 	(m) 	Permits.
MR has all material franchises, permits, licenses, and any                similar
authority necessary for the conduct of its business as now being                conducted
by it. MR is not in default in any material respect under any of such
               franchises, permits, licenses, or other similar authority. 

	 	(n) 	No
Default. Except as set forth on Schedule 3(n), MR is not in default in
               any material respect under any contract to which it is a party, nor has
any                event or omission occurred that, through the passage of time or the
giving of                notice, or both, would constitute a default in any material
respect thereunder                or cause the acceleration of any of MR’s
obligations thereunder or result                in the creation of any lien on any of MR’s
assets. Except as set forth on                Schedule 3(n), no third party is in default
in any material respect under any                contract to which MR is a party, nor has
any event or omission occurred that,                through the passage of time or the
giving of notice, or both, would constitute a                default in any material
respect thereunder, or give rise to an automatic                termination, or the right
of discretionary termination thereof. Except as set                forth on Schedule
3(n), each contract to which MR is a party is in full force                and effect and
is a valid and binding agreement enforceable against MR and, to                MR’s
knowledge, the other party or parties thereto in accordance with its
               terms. 

	 	(o) 	Environmental
and Safety Laws. MR is not in violation of any applicable                statute, law
or regulation relating to the environment or occupational health                and
safety. 

	 	(p) 	Registration
Rights. MR has not granted or agreed to grant any                registration rights,
including piggyback rights, to any person or entity. 

	 	(q) 	Title
to Property and Assets. Except as set forth on Schedule 3(q), MR                has
good and marketable title to all of properties and assets owned by it, free
               and clear of all mortgages, liens and encumbrances, except liens for
current                taxes and assessments not yet due. Except as set forth on Schedule
3(q), with                respect to the material property and assets it leases, MR is in
material                compliance with such leases and, to the best of its knowledge,
holds a valid                leasehold interest free of all liens, claims or
encumbrances. MR’s material                properties and assets are in good
condition and repair, in all material                respects, for the purposes for which
they are currently used, ordinary wear and                tear excepted. 

	 	(r) 	Agreements;
Actions. Except as provided on Schedule 3(r), there                are no
agreements, understandings or proposed transactions between MR and any of
               its officers, directors, affiliates, or any affiliate thereof. 

	 	(s) 	Brokers
or Finders. MR has not agreed to incur, directly or indirectly,                any
liability for brokerage or finders’ fees, agents’ commissions or
               other similar charges in connection with this Agreement or any of the
               transactions contemplated hereby. 

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	4.  	Representations
and Warranties of Buyer.

Buyer makes the following
representations and warranties to MR and the Jankes, and unless otherwise provided herein,
each of which is true and correct on the date hereof and shall survive the consummation of
the transactions contemplated hereby. 

	 	(a) 	Organization
and Qualification. Buyer is a corporation duly organized and                in active
status under the laws of the State of Florida. Buyer has all requisite
               power and authority to carry on its business as currently conducted, and
is duly                qualified to transact business. 

	 	(b) 	Corporate
Power. Buyer has all requisite corporate power and authority to
               execute and deliver this Agreement and the other documents and instruments
to be                executed and delivered by Buyer pursuant hereto and to carry out the
               transactions contemplated hereby and thereby. 

	 	(c) 	Authority.
The execution and delivery of this Agreement and the other                documents and
instruments to be executed and delivered by Buyer pursuant hereto                and the
consummation of the transactions contemplated hereby and thereby have                been
duly authorized by Buyer. No other or further corporate act or proceeding
               on the part of Buyer or its shareholders is necessary to authorize this
               Agreement or the other documents and instruments to be executed and
delivered by                Buyer pursuant hereto or the consummation of the transactions
contemplated                hereby and thereby. This Agreement constitutes, and when
executed and delivered,                the other documents and instruments to be executed
and delivered by Buyer                pursuant hereto will constitute, valid and binding
agreements of Buyer, as the                case may be, enforceable in accordance with
their respective terms, except as                such may be limited by bankruptcy,
insolvency, reorganization or other laws                affecting creditors’ rights
generally, and by general equitable principles. 

	 	(d) 	Valid
Issuance of IWWI Shares. On the date of the Closing, the IWWI                Shares
shall be duly authorized, validly issued, fully paid and non-assessable
               and will be free of restrictions on transfer directly or indirectly
created by                Buyer other than restrictions on transfer under this Agreement
and under                applicable state and federal securities laws. 

	5.  	Covenants
Prior to the Closing.

	 	(a) 	Management
and Operation of Business Pending the Closing. As of the                Effective
Date, Buyer shall have full control and authority over the management                and
operations of MR and shall be elected the sole manager of MR. Until the
               Closing, Buyer shall not make any distributions to itself from MR without
the                consent of the Jankes, and shall not incur any new contractual
obligations or                indebtedness in each instance greater than Three Thousand
Dollars ($3,000.00)                without the written consent of the Jankes. 

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	 	(b) 	Pre-Closing
Access to MR Information. From the date hereof until the                Closing,
except as prohibited by applicable Law, MR and the Jankes shall, and                shall
cause all of MR’s officers, employees, agents, independent
               accountants and advisors to, furnish to Buyer and its representatives, at
               reasonable times and places, (a) such access to the MR’s facilities
as                Buyer may from time to time reasonably request, (b) such access to
the                assets, books and records of MR as Buyer may from time to time
reasonably                request and (c) such access to financial and operating data and
other                information relating to MR as Buyer may from time to time reasonably
request,                including access to the work papers of MR’s independent
auditors. Buyer                shall be entitled to inspect, examine, audit and photocopy
all of such                documents. In addition, during such period, Buyer and its
representatives shall                have access to suppliers, customers, officers,
employees and agents of MR and                others having business dealings with MR for
the purpose of performing                Buyer’s due diligence investigation. In
connection with access to                information, Buyer agrees to execute such
confidentiality agreements as shall be                required by the Health Insurance
Portability and Accountability Act and any                other laws that are applicable. 

	 	(c) 	Further
Actions. Subject to the terms and conditions hereof, all Parties                shall
use their best efforts to take, or cause to be taken, all action and to
               do, or cause to be done, and to cooperate fully with each other with
respect to,                all things necessary, proper or advisable to consummate and
make effective the                transactions contemplated hereby, including using their
best efforts (a) to                obtain prior to the Closing all licenses, permits,
consents, approvals,                authorizations, qualifications and orders of
governmental entities and parties                to contracts with MR that are necessary
for the consummation of the transactions                contemplated hereby and (b) to
effect all necessary registrations and filings.                With regard to any consent
that may be required from third parties, MR, and/or                the Jankes shall
initiate contact to obtain such consents only in conjunction                and
cooperation with Buyer. Notwithstanding any language to the contrary
               contained herein, the Jankes shall not be required to incur any expenses
in                connection with the provisions of this subsection. 

	 	(d) 	Notification.
Prior to the Closing, MR or any member of MR shall promptly                notify Buyer
(after MR or such member has notice thereof), and Buyer shall                promptly
notify MR (after Buyer has notice thereof), and keep such other Parties
               advised, as to any litigation pending and known to such Party or, to its
actual                knowledge, threatened against such Party that challenges the
transactions                contemplated hereby. In addition, prior to the Closing, MR,
or any member of MR                shall promptly notify Buyer (after MR, or such member
has notice thereof), and                keep Buyer advised, as to any material adverse
change in the conduct, financial                condition, assets, liabilities, business,
prospects or operations of MR becoming                known to them. 

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	 	(e) 	Disclosure.
MR and the Jankes shall promptly notify Buyer in writing with                respect to
any matter hereafter arising or discovered that, if existing or known                on
the date hereof, would have been required to be set forth or described in the
               Disclosure Schedule on the date hereof or would cause the representations
and                warranties of any Party made pursuant to this Agreement not to be
true, correct                and complete as of the date hereof or the date on which such
matter arose or was                discovered, but no such disclosure shall cure any
breach of any representation                or warranty. For purposes of determining the
accuracy of the representations and                warranties of MR and the Jankes made
pursuant to this Agreement, the Disclosure                Schedule shall be deemed to
include only that information contained therein on                the date hereof, and
shall be deemed to exclude any information contained in any                notification
to Buyer pursuant to this Section 5(e) or otherwise. 

	 	
The
Disclosure Schedules for this Agreement shall be prepared by MR and the Sellers for
presentation to the Buyers within 14 days from the Effective Date. Such Disclosure
Schedules shall be dated as of the Effective Date. 

	6.  	Additional
Covenants

	 	(a) 	Non-Solicitation.
The Jankes agree that for a period of two years from                the date of execution
of this Agreement, that the Jankes will not, directly or                indirectly
solicit, induce or otherwise offer employment or engagement as an
               independent contractor with, any person who is or was an employee,
physician or                consultant of, or who performed similar services for MR, or
assist any third                party with respect to any of the foregoing, unless
either: (i) such person has                been separated from his or employment or other
relationship with Buyer and each                of its affiliates (including MR), or (ii)
written consent from Buyer is                obtained. 

	 	(b) 	Confidentiality.
The Parties, and their respective officers, directors,                partners and
affiliates, agree to keep the terms and conditions of this                Agreement
confidential, and agree not to disclose to any party not a party to                this
Agreement any of the terms hereof, except as may be required by applicable
               law or except to their professional advisors. The Parties hereto expressly
               acknowledges that they have received, and will receive in the future,
               Confidential Materials (as hereinafter defined), and that disclosure of
such                Confidential Materials to parties not a party to this Agreement would
cause                irreparable harm to the Parties hereto. Except with the prior
written consent of                the other Parties or as required by law, no Party, nor
their respective                officers, directors, partners or affiliates, shall (i)
disclose any Confidential                Materials to any party not a party to this
Agreement other than their                professional advisors, or (ii) use any
Confidential Materials for any purpose                except in connection with their
efforts on behalf of a party hereto and their                respective officers,
directors, partners or affiliates shall use their                reasonable best efforts
to preserve the confidentiality of all Confidential                Materials. In the
event that a Party concludes that it is legally obligated to                disclose any
provision of this Agreement or any Confidential Materials, such                Party
shall provide the other Parties with prompt written notice, and shall seek
               to limit the dissemination of such Confidential Materials. In the case of
legal                proceedings in which such disclosure is required, the Parties shall
cooperate to                obtain an appropriate protective order limiting the
disclosure of such material. 

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“Confidential
Materials” means any information or materials, whether written or oral, tangible or
intangible, concerning a party, its subsidiaries, businesses, markets, products,
prospects, finances, principal shareholders and/or members. Notwithstanding the foregoing,
the Confidential Material shall not include (A) information that was known to, and
material that was in the possession of a party prior to the commencement of any
negotiations, (B) information that is or becomes generally known to, and materials
possessed by, the public at large, (C) information or material acquired by Buyer
independently from a third party (other than a third party which Buyer knows, or has
reason to know, is under an obligation of confidentiality to MR), and (D) information or
material independently developed by Buyer and not as a result of the disclosure of
information or provision of materials by MR. The Confidential Materials may include, but
are not necessarily limited to, the following: concepts; techniques; data; documentation;
research and development; customer lists; advertising plans; distribution networks; new
product concepts; designs; patterns; sketches; planned introduction dates; processes;
marketing procedures; “know-how”; marketing techniques and materials;
development plans; names and other information related to strategic partners, suppliers,
or vendors; pricing policies and strategic, business or financial information, including
business plans and financial pro formas. 

	7.  	Conditions
Precedent to Buyer’s Obligations 

Each and every obligation of Buyer to
be performed on or after the Closing Date under this Agreement is subject to the
satisfaction (or written waiver by Buyer) prior to or at the Closing of each of the
following conditions: 

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	 	(a) 	Representations
and Warranties True on the Closing Date. Except for any                changes
permitted by the terms of this Agreement or consented to in writing by
               Buyer, each of the representations and warranties made by MR, and the
Jankes in                this Agreement, and each of the statements contained in the
Disclosure Schedule                or in any instrument, list, certificate or writing
delivered by or on behalf of                MR or any member of MR pursuant hereto, that
is qualified as to materiality                shall be true and correct in all respects
when made and shall be true and                correct in all respects at and as of the
Closing Date as though such                representations, warranties and statements
were made or given on and as of the                Closing Date, and each of such
representations, warranties and statements that                is not qualified as to
materiality shall be true and correct in all respects                when made and shall
be true and correct in all material respects at and as of                the Closing Date
as though such representations, warranties and statements were                made or
given on and as of the Closing Date. For purposes of whether the
               representations and warranties made by MR and the Jankes pursuant to this
               Agreement (including each of the statements contained in the Disclosure
Schedule                or in any instrument, list, certificate or writing delivered by
or on behalf of                MR or any member of MR pursuant hereto) is true and
correct at and as of the                Closing Date, the Disclosure Schedule shall be
deemed to include only that                information contained therein on the Effective
Date hereof, and shall be deemed                to exclude any information disclosed to
Buyer pursuant to Section 5(f).                However, information disclosed to
Buyer pursuant to Section 5(f) or                otherwise shall be taken into
account for purposes of determining whether the                condition described in
this Section 7(a) has been satisfied. 

	 	(b) 	Compliance
With Agreement. MR and the Jankes shall have in all material                respects
performed and complied with all of their respective agreements and
               obligations under this Agreement that are to be performed or complied with
by MR                or the members of MR prior to or on the Closing Date, including the
delivery of                the documents described in Section 10(b). 

	 	(c) 	Absence
of Litigation. No litigation shall have been commenced or                threatened,
and no investigation by any governmental entity shall have been                commenced,
against any Party or any of their respective affiliates with respect                to
the transactions contemplated hereby. 

	 	(d) 	Consents
and Approvals. All approvals, consents and waivers that are                required
to effect the transactions contemplated hereby shall have been                received,
and executed counterparts thereof shall have been delivered to Buyer,                not
less than two (2) business days prior to the Closing. 

	8.  	Conditions
Precedent to MR’s, and the Jankes’ Obligations

Each and every obligation of MR and
the Jankes to be performed on or after the Closing Date under this Agreement is subject to
the satisfaction (or written waiver by the Jankes) prior to or at the Closing of each of
the following conditions: 

12 

	 	(a) 	Representations
and Warranties True on the Closing Date. Except for any                changes
permitted by the terms of this Agreement or consented to in writing by                the
Jankes, each of the representations and warranties made by Buyer in this
               Agreement, and each of the statements contained in any instrument, list,
               certificate or writing delivered by or on behalf of Buyer pursuant hereto,
that                is qualified as to materiality shall be true and correct in all
respects when                made and shall be true and correct in all respects at and as
of the Closing Date                as though such representations, warranties and
statements were made or given on                and as of the Closing Date, and each of
such representations, warranties and                statements that is not qualified as
to materiality shall be true and correct in                all respects when made and
shall be true and correct in all material respects at                and as of the
Closing Date as though such representations, warranties and                statements
were made or given on and as of the Closing Date. 

	 	(b) 	Compliance
With Agreement. Buyer shall have in all material respects                performed
and complied with all of its agreements and obligations under this
               Agreement that are to be performed or complied with by Buyer prior to or
on the                Closing Date, including the delivery of the documents described in
Section                10(c). 

	9.  	Indemnification

	 	(a) 	Indemnification
by Jankes. Subject to the provisions of Section 9(f), the                Jankes
shall, joint and severally, defend, indemnify and hold harmless Buyer and
               its members, managers, employees, agents, consultants, representatives,
               affiliates, successors and assigns from and against any and all claims,
               liabilities, obligations, losses, costs, expenses (including, without
               limitation, legal, accounting and similar expenses), litigation,
proceedings,                fines, taxes, levies, imposts, duties, deficiencies,
assessments, charges,                penalties, demands, damages (including, but not
limited to, actual, foreseen or                unforeseen, known or unknown, fixed or
contingent, and matured or unmatured),                civil and criminal violations of
law, settlements and judgments of any kind or                nature whatsoever
(individually a “Loss” and collectively,                “Losses”),
that any of them may incur arising out of any one or more                of the
following: (a) any breach or violation of any of the covenants made by
               Jankes or MR in this Agreement; (b) any breach of, or any inaccuracy or
               misrepresentation in, any of the representations or warranties made by
Jankes                and MR in this Agreement or in any agreement, instrument,
certificate or similar                document required to be delivered pursuant to the
terms hereof; (c) any                investigation, civil regulatory proceeding or other
action instituted by the                Centers for Medicare and Medicaid Services (“CMS”)
as a result of                MR’s operations. 

13 

	 	(b) 	Indemnification
by Buyer. Buyer shall indemnify and hold harmless Jankes                and MR and
their respective members, directors, trustees, officers, employees,
               agents, consultants, representatives, affiliates, successors and assigns
from                and against any and all Losses that any of them may incur arising out
of any one                or more of the following: (a) any breach or violation of any of
the covenants                made by Buyer in this Agreement; (b) any breach of, or any
inaccuracy or                misrepresentation in, any of the representations or
warranties made by Buyer in                this Agreement or in any agreement,
instrument, certificate or similar document                required to be delivered
pursuant to the terms hereof; or (c) any guarantees                made by the Jankes on
any obligations of MR. 

	 	(c) 	Survival.
The representations, warranties, covenants and agreements made                in this
Agreement or in any agreement, instrument or similar document delivered
               pursuant hereto shall survive the execution and delivery of this Agreement
and                the consummation of the transactions contemplated hereby. 

	 	(d) 	Indemnification
Procedure. 

	 	(i) 	Any
Party seeking indemnification hereunder (the “Indemnitee”) shall
               notify the parties liable for such indemnification (each an
               “Indemnitor”) in writing of any event, omission or occurrence
that the                Indemnitee has determined has given or could give rise to Losses
that are                indemnifiable hereunder (such written notice being hereinafter
referred to as a                “Notice of Claims”). Such notice shall be given
promptly after the                Indemnitee becomes aware of its own claim or that of a
third party; provided                that the failure of any Indemnitee to give notice as
provided in this Section                9(d) shall not relieve the Indemnitor of
its obligations under this Section 9. A Notice of Claims shall specify in
reasonable detail the                nature and any particulars of the event, omission or
occurrence giving rise to a                right of indemnification. The Indemnitor shall
satisfy its obligations                hereunder, as the case may be, within thirty (30)
days of its receipt of a                Notice of Claims; provided, however,
that so long as the                Indemnitor is in good faith defending a claim pursuant
to clause (b) below, its                obligation to indemnify the Indemnitee with
respect thereto shall be suspended.  

14 

	 	(ii) 	Except
as provided in Section 9(d)(i), with respect to any third party
               claim, demand, suit, action or proceeding that is the subject of a Notice
of                Claim, the Indemnitor shall, in good faith and at its own expense,
defend,                contest or otherwise protect against any such claim, demand, suit,
action or                proceeding with legal counsel of its own selection (and
reasonably acceptable to                the Indemnitee). The Indemnitee shall have the
right, but not the obligation, to                participate, at its own expense, in the
defense thereof through counsel of its                own choice and shall have the
right, but not the obligation, to assert any and                all cross claims or
counterclaims it may have. So long as the Indemnitor is                defending in good
faith any such third party claim, demand, suit, action or                proceeding, the
Indemnitee shall at all times cooperate, at its own expense, in                all
reasonable ways with, make its relevant files and records available for
               inspection and copying by, and make its employees available or otherwise
render                reasonable assistance to, the Indemnitor. In the event that the
Indemnitor fails                to timely defend, contest or otherwise protect against
any such third party                claim, demand, suit, action or proceeding, the
Indemnitee shall have the right,                but not the obligation, to defend,
contest, assert cross claims or                counterclaims, or otherwise protect
against, the same and may make any                compromise or settlement thereof and be
entitled to all amounts paid as a result                of such third party claim,
demand, suit or action or any compromise or                settlement thereof. The
Indemnitor will not consent to the entry of any judgment                or enter into any
settlement with respect to any such third party claim, demand,                suit,
action or proceeding without the prior written consent of the Indemnitee,
               which will not be unreasonably withheld.  

	 	(e) 	Time
Limits on Indemnification. Except for claims or actions based on
               fraud, no claim or action shall be brought under this Article 9 for
               breach of a representation or warranty after the lapse of twenty four (24)
               months following the Closing. Regardless of the foregoing, however, or any
other                provision of this Agreement, any representation or warranty made by
MR or the                Jankes in or pursuant to Sections 3(a), 3(b), 3(d), 3(f), 3(h),
3(m), and 3(r)                shall survive for the applicable statute of limitations
plus sixty (60) days,                including any extension or tolling thereof. 

	 	(f) 	Any
amounts payable by the Jankes pursuant to this Article 9 shall be
               first deducted from the Purchase Price held under the Escrow Agreement,
and any                property taken from the Escrow Agreement to satisfy any
obligations of the                Jankes under this Article 9 shall be deemed a
reduction to the Purchase                Price. 

	10.  	Closing

	 	(a) 	Closing
Date; Location. Unless this Agreement shall have been terminated                and
the transactions contemplated hereby shall have been abandoned in accordance
               with Section 11, and provided that the conditions to the Closing
set                forth in Section 7 and Section 8 are satisfied or
waived, the                consummation of the transactions contemplated hereby (the
“Closing”)                shall take place at the offices of Foley & Lardner
LLP, at 10:00 a.m., local                time on the first business day following the
completion of the audit of MR by                the accounting firm of Stark, Winter,
Schenkein and Co., LLP (the “Closing                Date”). Notwithstanding the
foregoing, the Closing Date shall occur on or                prior to January 5, 2008. 

15 

	 	(b) 	Documents
to be delivered by MR and the Jankes. At the Closing, MR, and                the
Jankes shall deliver to Buyer the following documents, in each case duly
               executed or otherwise in proper form: 

	 	(i) 	Certificates.
Certificates representing the MR Membership Interests, duly                endorsed for
transfer  

	 	(ii) 	Escrow
Agreement. The Escrow Agreement, dated as of the Closing Date.  

	 	(iii) 	Certified
Charter. A copy of the charter of MR, certified by the                Secretary of
State of Florida.  

	 	(iv) 	Certified
Bylaws or Similar Organizational Documents. A copy of the                bylaws and
similar organizational documents of MR, certified by the secretary
               thereof.  

	 	(v) 	Certified
Resolutions. A copy of the resolutions of the Board of Managers                and
members of MR, in form and substance reasonably satisfactory to Buyer,
               authorizing and approving this Agreement and the other documents and
instruments                to be executed and delivered by MR and its respective members,
as the case may                be, pursuant hereto and the consummation of the
transactions contemplated hereby                and thereby, certified by the secretary
thereof.  

	 	(vi) 	Good
Standing Certificate. A Certificate of Good Standing for MR, issued                by
the Secretary of State of Florida.  

	 	(c) 	Documents
to be delivered by Buyer. At the Closing, Buyer shall deliver                to MR
and the Jankes the following documents, in each case duly executed or
               otherwise in proper form: 

	 	(i) 	Certificates.
Certificates representing the IWWI Shares, duly endorsed                for transfer,
delivered to Escrow Agent.  

	 	(ii) 	Escrow
Agreement. The Escrow Agreement, dated as of the Closing Date.  

	 	(iii) 	Certified
Resolutions. A copy of the resolutions of the Board of                Directors of
Buyer authorizing and approving this Agreement and the other                documents and
instruments to be executed and delivered by Buyer pursuant hereto                and the
consummation of the transactions contemplated hereby and thereby.  

16 

	11.  	Termination

	 	(a) 	Termination
without Breach. This Agreement may be terminated, and the                transactions
contemplated hereby may be abandoned, without any further Liability                of any
Party at any time prior to the Closing: 

	 	(i) 	By
mutual written agreement of Buyer and the Jankes;  

	 	(ii) 	By
Buyer in the event that a Governmental Entity shall have enacted, issued,
               promulgated, enforced or entered any law or order, or granted any required
               consent or approval, that has the effect of conditioning the consummation
of the                transactions contemplated hereby upon the divesture, sale or
holding separate of                any of Buyer’s or its affiliates’ (including,
for this purpose,                MR’s) assets, businesses or properties, the
execution of a consent decree                or the assumption of any other obligations
with respect to the ongoing                operations of Buyer and/or its affiliates
(including, for this purpose, MR).  

	 	(iii) 	By
Buyer within 7 days after it receives the Disclosure Schedules from the
               Jankes and MR dated as of the Effective Date.  

	 	(b) 	Termination
for Breach. 

	 	(i) 	Termination
by Buyer. If (i) there has been a material violation or                breach by MR
or any member of MR of any of the representations, warranties,                covenants,
agreements or other provisions of this Agreement that has not been                waived
in writing by Buyer, (ii) an event has occurred (other than a breach of
               this Agreement by Buyer) such that a condition to the obligations of Buyer
               cannot be satisfied or (iii) MR or the Jankes shall have attempted to
terminate                this Agreement under this Section 11 or otherwise without
grounds to do                so, then Buyer may, upon written notice to the Jankes at any
time prior to the                Closing during the period that such violation, breach,
failure or wrongful                termination attempt is continuing, terminate this
Agreement with the effect set                forth in Section 11(b)(iii).  

	 	(ii) 	Termination
by the Jankes. If (i) there has been a material violation or                breach by
Buyer of any of the representations, warranties, covenants, agreements                or
other provisions of this Agreement that has not been waived in writing by the
               Jankes, (ii) an event has occurred (other than a breach of this Agreement
by MR                or the Jankes) such that a condition to the obligations of MR, and
the Jankes                cannot be satisfied or (iii) Buyer shall have attempted to
terminate this                Agreement under this Section 11 or otherwise without
grounds to do so,                then the Jankes may, upon written notice to Buyer at any
time prior to the                Closing during the period that such violation, breach,
failure or wrongful                termination attempt is continuing, terminate this
Agreement with the effect set                forth in Section 11(b)(iii).  

17 

	 	(iii) 	Effect
of Termination. Termination of this Agreement pursuant to this Section 11(b) shall
not in any way terminate, limit or restrict the                rights and remedies of any
Party against any other Party that has violated,                breached or failed to
satisfy any of the representations, warranties, covenants,                agreements,
conditions or other provisions of this Agreement prior to                termination
hereof. In addition to the right of any Party under common law to                redress
for any such breach or violation, each Party whose breach or violation                has
occurred prior to termination shall jointly and severally indemnify each
               other Party for whose benefit such representation, warranty, covenant,
agreement                or other provision was made from and against all claims asserted
against,                resulting to, imposed upon or incurred by the non-breaching
party, directly or                indirectly, by reason of, arising out of or resulting
from such breach or                violation.  

	12.  	Miscellaneous

	 	(a) 	Disclosure
Schedules. MR and the Jankes will prepare the schedules to be                attached
to this Agreement (individually, a “Schedule” and
               collectively, the “Disclosure Schedule”) and delivered to
Buyer                within 14 days from the date hereof. Any fact or item disclosed on
any Schedule                shall be deemed disclosed on all other Schedules to which
such fact or item may                reasonably apply so long as such disclosure is in
sufficient detail to enable a                reasonable person to identify the other
article or section of this Agreement to                which such information is
responsive. 

          	 	(b) 	
               Governing Law. This Agreement shall be governed in all respects by the
               laws of the State of Florida, without regard to any provisions thereof relating
               to conflicts of laws among different jurisdictions. 

               

          	 	(c) 	
               Survival. Except as provided in Sections 9(c) and 9(e), the
               representations and warranties made herein shall survive the Closing for a
               period of twenty four months, whereupon they shall cease and be of no further
               force and effect. 

               

	 	(d) 	Successors
and Assigns. Except as otherwise provided herein, the                provisions
hereof shall inure to the benefit of, and be binding upon, the                successors,
assigns, heirs, executors and administrators of the Parties hereto;
               provided, however, that the rights of Buyer to purchase the MR Membership
               Interests shall not be assignable without the consent of the other
Parties.                Notwithstanding the foregoing, the Jankes shall have the right to
transfer the                MR Membership Interests to trusts established for their
benefit or the benefit                of themselves and their children and heirs at any
time. This Agreement shall not                be construed so as to confer any right or
benefit on any party not a party                hereto, other than their respective
successors, assigns, heirs, executors and                administrators. 

18 

	 	(e) 	Entire
Agreement; Amendment. This Agreement and the other documents                delivered
pursuant hereto constitute the full and entire understanding and                agreement
among the Parties with regard to the subjects hereof and thereof and
               supersede all prior agreements and understandings relating thereto.
Neither this                Agreement nor any term hereof may be amended, waived,
discharged or terminated                other than by a written instrument signed by the
Party against whom enforcement                of any such amendment, waiver, discharge or
termination is sought. 

	 	(f) 	Notice.
All notices under this Agreement shall be sufficiently given for                all
purposes if made in writing and delivered personally, sent by documented
               overnight delivery service or, to the extent receipt is confirmed,
facsimile or                other electronic transmission, to following addresses and
numbers. 

Notices to MR shall be addressed to: 

Medical Resources, LLC
2055 So. US
Highway 1
Vero Beach, Florida 32962  
Attn: Lalita Janke, Chief Executive Officer  

or at such other address and to the
attention to such other person as MR may designate by written notice to Buyer. 

Notices to Buyer shall be addressed to: 

	 	
PrimaCare
Corporation
2501 N Green Valley Parkway, Suite 110
Henderson, Nevada 89014
Attn: Ashvin
Mascarenhas, President 

or at such other address and to the
attention of such other person as Buyer may designate by written notice to MR. 

	 	(g) 	Delays
or Omissions. No delay or omission to exercise any right, power or
               remedy accruing to any Party upon any breach or default of the other
Parties                under this Agreement shall impair any such right, power or remedy
of such first                party, nor shall it be construed to be a waiver of any such
breach or default,                or an acquiescence therein, or of or in any similar
breach or default thereafter                occurring; nor shall any waiver of any single
breach or default be deemed a                waiver of any other breach or default
theretofore or thereafter occurring. Any                waiver, permit, consent or
approval of any kind or character on the part of any                holder of any breach
or default under this Agreement, or any waiver on the part                of any holder
of any provisions or conditions of this Agreement, must be in                writing and
shall be effective only to the extent specifically set forth in such
               writing or as provided in this Agreement. 

19 

	 	(h) 	Expenses.
The Parties hereto shall each bear the expenses and legal fees                incurred on
their own behalf with respect to this Agreement and the transactions
               contemplated hereby. 

	 	(i) 	Counterparts.
This Agreement may be executed in any number of                counterparts, each of
which may be executed by only one Party, which shall be                enforceable
against the Parties actually executing such counterparts, and all of                which
together shall constitute one instrument. 

	 	(j) 	Severability;
Enforcement. In the event that any provision of this                Agreement becomes
or is declared by a court of competent jurisdiction to be                illegal,
unenforceable or void, this Agreement shall continue in full force and
               effect without such provision; provided that no such severability shall be
               effective if it materially changes the economic benefit of this Agreement
to any                Party. The Parties hereto agree that irreparable damage for which
money damages                would not be an adequate remedy would occur in the event
that any of the                provision of this Agreement were not performed in
accordance with its specific                terms or was otherwise breached. It is
accordingly agreed that, in addition to                any other remedies a Party may
have at law or equity, the Parties shall be                entitled to seek an injunction
of injunctions to prevent such breached of this                Agreement and to enforce
specifically the terms hereof. 

[THE REMAINDER OF THIS
PAGE IS INTENTIONALLY LEFT BLANK. SIGNATURE PAGE TO FOLLOW.]  

20 

        IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above
written. 

		MEDICAL RESOURCES, LLC
	
 	/s/ Lalita Janke
		By: Lalita Janke
		Its: Chief Executive Officer
	

 	JANKES:
	
 	/s/ Lalita Janke
		Lalita Janke
	

 	/s/ Walter Janke
		Walter Janke
	

 	BUYER:
	
 	PRIMACARE CORPORATION
	
 	/s/ Ashvin Mascarenhas
		By: Ashvin Mascarenhas
		Its: Chief Executive Officer

21Medtronic, Inc. Exhibit 10.1 to Form 10-Q

Exhibit 10.1

 

MEDTRONIC, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(as restated generally effective January 1, 2008)

 

 

TABLE OF CONTENTS

 

 

	
             
 	
             
 	
            Page
 
	
             
 	
             
 	
             
 
	
            ARTICLE 1
 	
            DEFERRED COMPENSATION ACCOUNT
 	
            1
 
	
             
 	
             
 	
             
 
	
            Section 1.1
 	
            Establishment of Account
 	
            1
 
	
            Section 1.2
 	
            Property of Company
 	
            2
 
	
             
 	
             
 	
             
 
	
            ARTICLE 2
 	
            DEFINITIONS, GENDER, AND NUMBER
 	
            2
 
	
             
 	
             
 	
             
 
	
            Section 2.1
 	
            Definitions
 	
            2
 
	
            Section 2.2
 	
            Gender and Number
 	
            6
 
	
             
 	
             
 	
             
 
	
            ARTICLE 3
 	
            PARTICIPATION
 	
            6
 
	
             
 	
             
 	
             
 
	
            Section 3.1
 	
            Who May Participate
 	
            6
 
	
            Section 3.2
 	
            Time and Conditions of Participation
 	
            7
 
	
            Section 3.3
 	
            Termination and Suspension of Participation
 	
            7
 
	
            Section 3.4
 	
            Missing Persons
 	
            7
 
	
            Section 3.5
 	
            Relationship to Other Plans
 	
            7
 
	
             
 	
             
 	
             
 
	
            ARTICLE 4
 	
            RETIREMENT PLAN SUPPLEMENTAL BENEFIT
 	
            7
 
	
             
 	
             
 	
             
 
	
            Section 4.1
 	
            Calculation of Retirement Plan Supplemental Benefit
 	
            7
 
	
            Section 4.2
 	
            Establishment of Nonqualified Retirement Plan Account
 	
            8
 
	
            Section 4.3
 	
            Interest Credited to Nonqualified Retirement Plan Account
 	
            8
 
	
            Section 4.4
 	
            Payment of Nonqualified Retirement Plan Account
 	
            9
 
	
             
 	
             
 	
             
 
	
            ARTICLE 5
 	
            DEFINED CONTRIBUTION SUPPLEMENTAL BENEFIT
 	
            9
 
	
             
 	
             
 	
             
 
	
            Section 5.1
 	
            Nonqualified Defined Contribution Account
 	
            9
 
	
            Section 5.2
 	
            Gains Credited to Nonqualified Defined Contribution Account
 	
            9
 
	
            Section 5.3
 	
            Payment of Nonqualified Defined Contribution Account
 	
            9
 
	
             
 	
             
 	
             
 
	
            ARTICLE 6
 	
            PERSONAL INVESTMENT ACCOUNT SUPPLEMENTAL BENEFIT
 	
            9
 
	
             
 	
             
 	
             
 
	
            Section 6.1
 	
            Calculation of Personal Investment Account Supplemental Benefit
 	
            9
 
	
            Section 6.2
 	
            Establishment of Nonqualified Personal Investment Account
 	
            10
 
	
            Section 6.3
 	
            Crediting Gains and Losses to Nonqualified Personal Investment Account
 	
            10
 
	
            Section 6.4
 	
            Vested Interest in Nonqualified Personal Investment Account
 	
            11
 
	
            Section 6.5
 	
            Payment of Nonqualified Personal Investment Account
 	
            11
 
	
             
 	
             
 	
             
 
	
            ARTICLE 7
 	
            DEATH BENEFITS
 	
            11
 
	
             
 	
             
 	
             
 
	
            Section 7.1
 	
            Form and time of Payment
 	
            11
 
	
            Section 7.2
 	
            Beneficiary
 	
            11
 
	
             
 	
             
 	
             
 
	
            ARTICLE 8
 	
            CHANGE IN CONTROL PROVISIONS
 	
            12
 
	
             
 	
             
 	
             
 
	
            Section 8.1
 	
            Application of Article 8
 	
            12
 

 

 

i

	
            Section 8.2
 	
            Payments to and by the Trust
 	
            12
 
	
            Section 8.3
 	
            Legal Fees and Expenses
 	
            12
 
	
            Section 8.4
 	
            Late Payment and Additional Payment Provisions
 	
            12
 
	
             
 	
             
 	
             
 
	
            ARTICLE 9
 	
            FUNDING
 	
            13
 
	
             
 	
             
 	
             
 
	
            Section 9.1
 	
            Source of Benefits
 	
            13
 
	
            Section 9.2
 	
            No Claim on Specific Assets
 	
            13
 
	
             
 	
             
 	
             
 
	
            ARTICLE 10
 	
            ADMINISTRATION
 	
            13
 
	
             
 	
             
 	
             
 
	
            Section 10.1
 	
            Administration
 	
            13
 
	
            Section 10.2
 	
            Powers of Committee
 	
            13
 
	
            Section 10.3
 	
            Actions of the Committee
 	
            14
 
	
            Section 10.4
 	
            Delegation
 	
            14
 
	
            Section 10.5
 	
            Reports and Records
 	
            14
 
	
            Section 10.6
 	
            Claims Procedure
 	
            14
 
	
             
 	
             
 	
             
 
	
            ARTICLE 11
 	
            AMENDMENTS AND TERMINATION
 	
            15
 
	
             
 	
             
 	
             
 
	
            Section 11.1
 	
            Amendments
 	
            15
 
	
            Section 11.2
 	
            Termination
 	
            15
 
	
             
 	
             
 	
             
 
	
            ARTICLE 12
 	
            MISCELLANEOUS
 	
            16
 
	
             
 	
             
 	
             
 
	
            Section 12.1
 	
            No Guarantee of Employment
 	
            16
 
	
            Section 12.2
 	
            Release
 	
            16
 
	
            Section 12.3
 	
            Notices
 	
            16
 
	
            Section 12.4
 	
            Nonalienation
 	
            16
 
	
            Section 12.5
 	
            Withholding
 	
            16
 
	
            Section 12.6
 	
            Captions
 	
            16
 
	
            Section 12.7
 	
            Applicable Law
 	
            16
 
	
            Section 12.8
 	
            Invalidity of Certain Provisions
 	
            16
 
	
            Section 12.9
 	
            No Other Agreements
 	
            16
 
	
            Section 12.10
 	
            Incapacity
 	
            17
 
	
            Section 12.11
 	
            Electronic Media
 	
            17
 
	
            Section 12.12
 	
            Delay of Distributions Upon Certain Events
 	
            17
 
	
            Section 12.13
 	
            Acceleration of Distributions Upon Certain Events
 	
            18
 
	
             
 	
             
 	
             
 
	
            SCHEDULE A – CREDITING RATE
 	
            20
 
	
             
 	
             
 

 

 

ii

MEDTRONIC, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(as restated generally effective January 1, 2008)

 

Medtronic, Inc. (the “Company”) previously established the Medtronic, Inc. Executive Nonqualified Supplemental Benefit Plan (the “Plan”) for the benefit of the Eligible Employees of the Company and certain of its Affiliates, effective May 1, 1986. The Plan was most recently amended and restated, effective May 1, 2005. The Company hereby again restates the Plan, effective January 1, 2008, to comply with the requirements of the final regulations issued under Section 409A of the Code (“Section 409A”) on April 10, 2007.

 

This restatement applies to amounts deferred under the Plan on or after January 1, 2008 (the “Restatement Date”), and to the payment of all amounts deferred under the Plan (whether such amounts were deferred before, on, or after the Restatement Date) that have not yet been distributed as of the Restatement Date. No amount deferred under the Plan is intended to be “grandfathered” under Section 409A.

 

The purpose of the Plan is to provide Eligible Employees with benefits that supplement those provided under certain of the tax-qualified plans maintained by the Company. More specifically, the Plan is intended to provide certain benefits on a nonqualified basis that are not otherwise provided under the Company’s tax-qualified plans as a result of the application of certain legal limitations on contributions, benefits and includible compensation and as a result of elections made by eligible employees under other plans maintained by the Company.

 

The Plan is intended to be (and shall be construed and administered as) an employee benefit pension plan under the provisions of ERISA, which is unfunded and maintained primarily for the purpose of providing deferred compensation for Eligible Employees who constitute a select group of management or highly-compensated employees, as described in Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. 

The Plan is not intended to be qualified under Section 401(a) of the Code. The Plan, as restated herein, is subject to, and intended to comply with, Section 409A of the Code.

 

The obligation of the Company to make payments under the Plan constitutes an unsecured (but legally enforceable) promise of the Company to make such payments and no person, including any Participant or Beneficiary, shall have any lien, prior claim or other security interest in any property of the Company as a result of the Plan.

 

	
             
 	
            ARTICLE 1.
 	
            DEFERRED COMPENSATION ACCOUNT
 

 

Section 1.1.        Establishment of Account. The Company shall establish one or more Accounts for each Participant which shall be utilized solely as a device to measure and determine the amount of deferred compensation to be paid under the Plan.

 

Section 1.2.        Property of Company. Any amounts set aside for benefits payable under the Plan are the property of the Company, except, and to the extent, provided in the Trust.

 

	
             
 	
            ARTICLE 2.
 	
            DEFINITIONS, GENDER, AND NUMBER
 

 

Section 2.1.        Definitions. Whenever used in the Plan, the following words and phrases shall have the meanings set forth below unless the context plainly requires a different meaning, and when a defined meaning is intended, the term is capitalized.

 

2.1.1.    “Account” means a bookkeeping account established by the Company on its books and records to record and determine the benefits payable to a Participant or Beneficiary under the Plan. The Company shall establish a separate Account on behalf of each Participant for:

 

(a)        The benefit the Participant is entitled to receive pursuant to Section 4.2, if any, referred to as the “Nonqualified Retirement Plan Account;”

 

(b)        The benefit the Participant is entitled to receive pursuant to Article 5, if any, referred to as the “Nonqualified Defined Contribution Account;” and

 

(c)        The benefit the Participant is entitled to receive pursuant to Section 6.2, if any, entitled the “Supplemental Personal Investment Account.”

 

The Committee may establish any number of sub-accounts on behalf of a Participant or Beneficiary as the Committee considers necessary or advisable for purposes of maintaining a proper accounting of amounts to be credited under the Plan on behalf of a Participant or Beneficiary.

 

2.1.2.    “Affiliate” or “Affiliates” means the Company and any entity with which the Company would be considered a single employer under Section 414(b) of the Code (employees of controlled group of corporations) and Section 414(c) of the Code (employees of partnerships, proprietorships, etc., under common control).

 

2.1.3.    “Beneficiary” or “Beneficiaries” means the persons or trusts designated by a Participant in writing pursuant to Section 7.2.1 of the Plan as being entitled to receive any benefit payable under the Plan by reason of the death of a Participant, or, in the absence of such designation, the persons specified in Section 7.2.2 of the Plan.

 

2.1.4.    “Board” means the Board of Directors of the Company as constituted at the relevant time.

 

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2.1.5.    “Capital Accumulation Plan” means the Medtronic, Inc. Capital Accumulation Plan Deferral Program, as amended or restated from time to time or any successor thereto.

 

2.1.6.    “Code” means the Internal Revenue Code of 1986, as amended from time to time and any successor statute. References to a Code section shall be deemed to be to that section or to any successor to that section.

 

2.1.7.    “Committee” means the Committee or individual appointed by the Compensation Committee of the Board (or any person or entity designated by the Committee) to administer the Plan pursuant to Section 10.4.

 

2.1.8.    “Company” means Medtronic, Inc. and its successors and assigns, by merger, purchase or otherwise.

 

2.1.9.    “Defined Contribution Supplemental Benefit” means the benefit under the Predecessor Plan that was commonly referred to as the “ESOP restoration benefit.”  This benefit equals the difference between:  (a) the allocation due to Company contributions the Participant would have received under the ESOP prior to May, 1, 2005, but for the Section 401(a)(17) Limitation and Section 415 Limitation; and (b) the actual allocation actually received by the Participant under the ESOP.

 

2.1.10.  “Domestic Relations Order” has the meaning set forth in Section 414(p)(1)(B) of the Code.

 

2.1.11.  “Eligible Employee” means an elected or appointed officer of the Company, or any other key employee of the Company or an Affiliate designated by the Committee, excluding any individual who is neither a United States citizen nor a United States resident. In order to be an Eligible Employee an employee must be a member of a select group of management or highly compensated employees within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA and rules established by the Committee. The Company may make such projections or estimates as it deems desirable in applying the eligibility requirements, and its determination shall be conclusive.

 

2.1.12.  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time and any successor statute. References to an ERISA section shall be deemed to be to that section or to any successor to that section.

 

2.1.13.  “ESOP” means the Medtronic, Inc. Employee Stock Ownership Plan, as in effect prior to April 30, 2001. (As of April 30, 2001, the ESOP was amended to permit elective deferrals under Section 401(k) of the Code and renamed the Medtronic, Inc. Employee Stock Ownership and Supplemental Retirement Plan. As of May 1, 2005, the Medtronic, Inc. Employee Stock Ownership and Supplemental Retirement Plan was amended and renamed the Medtronic, Inc. Savings and Investment Plan.)

 

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2.1.14.  “Event” means an event of change in control of the Company, as defined in the Trust.

 

2.1.15.  “Option Replacement Plan” means the Medtronic, Inc. Option Replacement Plan, as amended or restated from time to time or any successor thereto.

 

2.1.16.  “Participant” means an Eligible Employee who has commenced participation in the Plan.

 

2.1.17.  “Personal Investment Account” has the same meaning as in the Savings and Investment Plan.

 

2.1.18.  “Personal Investment Account Supplemental Benefit” has the meaning set forth in Article 6.

 

2.1.19.  “Plan” means the “Medtronic, Inc. Supplemental Executive Retirement Plan” as set forth herein and as amended or restated from time to time.

 

2.1.20.  “Plan Year” means the 12-month period commencing May 1 and ending the following April 30.

 

2.1.21.  “Predecessor Plan” means the Plan, as in effect prior to May 1, 2005.

 

2.1.22.  “Restatement Date” means January 1, 2008, the effective date of this restatement.

 

2.1.23.  “Retirement Plan” means the Medtronic, Inc. Retirement Plan, as amended from time to time, and any successor thereto. In general, the Retirement Plan includes a final average pay benefit for individuals employed by the Company or an Affiliate prior to May 1, 2005. Effective May 1, 2005, the Retirement Plan provides a personal pension account benefit for individuals who become employed on or after May 1, 2005. Individuals participating in the Retirement Plan prior to May 1, 2005, may elect a personal pension account benefit in lieu of the final average pay benefit for Plan Years commencing May 1, 2005. Alternatively, an individual otherwise eligible to participate in the Retirement Plan may elect not to participate in the Retirement Plan and receive a contribution to a
Personal Investment Account. 

 

2.1.24.   “Retirement Plan Supplemental Benefit” has the meaning set forth in Article 4.

 

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2.1.25.  “Savings and Investment Plan” means the Medtronic, Inc. Savings and Investment Plan, as amended from time to time, and any successor thereto. The Savings and Investment Plan includes a salary reduction benefit under Section 401(k) of the Code and a matching contribution benefit under Section 401(m) of the Code. Effective May 1, 2005, the Savings and Investment Plan also includes a Personal Investment Account for those Participants who have elected this retirement benefit option.

 

2.1.26.  “Section 401(a)(17) Limitation” means the limitation on the dollar amount of compensation that may be taken into account under qualified retirement plans under Section 401(a)(17) of the Code, or any successor provision thereto.

 

2.1.27.  “Section 415 Limitation” means the limitation on benefits for qualified defined benefit pension plans and the limitation on allocations for qualified defined contribution plans, which are imposed by Section 415(b) and (c), respectively, of the Code, or any successor provision thereto.

 

2.1.28.  “Separation from Service” or “Separate from Service,” with respect to a Participant, means the Participant’s separation from service with all Affiliates, within the meaning of  Section 409A(a)(2)(A)(i) of the Code and the regulations thereunder. Solely for this purpose, a Participant will be considered to have a Separation from Service when the Participant dies, retires, or otherwise has a termination of employment  with all Affiliates. The employment relationship is treated as continuing intact while the Participant is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the individual retains a right to reemployment
with the an Affiliate under an applicable statute or by contract. For purposes hereof, a leave of absence constitutes a bona fide leave of absence only if there is a reasonable expectation that the Participant will return to perform services for an Affiliate. If the period of leave exceeds six months and the individual does not retain a right to reemployment under an applicable statute or by contract, the employment relationship is deemed to terminate on the first date immediately following such six-month period. Notwithstanding the foregoing, where a leave of absence is due to any medically determinable physical or mental impairment that can be expected to last for a continuous period of not less than six months, where such impairment causes the employee to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, the Company may substitute a 29-month period of absence for such six-month period.

 

Whether a termination of employment has occurred is determined based on whether the facts and circumstances indicate that the Affiliate and the Participant reasonably anticipated that no further services will be performed after a certain date or that the level of bona fide services the Participant will perform after such date (whether as an employee or independent contractor) will permanently decrease to no more than 40 percent of the average level of bona fide services performed (whether as an employee or independent contractor) over the immediately preceding 36-month period (or the full period of services if the Participant has been providing services for less than 36 months).

 

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Notwithstanding anything in Section 2.1.2 to the contrary, in determining whether a Participant has had a Separation from Service with an Affiliate, an entity’s status as an “Affiliate” shall be determined substituting “50 percent” for “80 percent” each place it appears in Section 1563(a)(1),(2), and (3) and in Treasury Regulation Section 1.414(c)-2.

 

The Company shall have discretion to determine whether a Participant has experienced a Separation from Service in connection with an asset sale transaction entered into by the Company or an Affiliate, provided that such determination conforms to the requirements of Section 409A and the regulations and other guidance issued thereunder, in which case the Company’s determination shall be binding on the Participant.

 

2.1.29.  “Section 409A” means section 409A of the Internal Revenue Code, as amended from time to time and any successor statute.

 

2.1.30.  “Specified Employee” means an employee of an Affiliate who is subject to the six-month delay rule described in Section 409A(2)(B)(i) of the Code. The Company shall establish a written policy for identifying Specified Employees in a manner consistent with Section 409A, which policy may be amended by the Company from time to time as permitted by Section 409A.

 

2.1.31.  “Stock” means the Company’s common stock $.10 par value per share (as such par value may be adjusted from time to time).

 

2.1.32.  “Trust” means the Medtronic, Inc. Compensation Trust Agreement Number One, as amended from time to time.

 

Section 2.2.         Gender and Number. Except as otherwise indicated by context, masculine terminology used herein also includes the feminine and neuter, and terms used in the singular may also include the plural.

 

	
             
 	
            ARTICLE 3.
 	
            PARTICIPATION
 

 

Section 3.1.         Who May Participate. Participation in the Plan is limited to Eligible Employees.

 

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Section 3.2.        Time and Conditions of Participation. An Eligible Employee shall become a Participant on the date on which he or she first accrues a benefit under the Plan, provided that he or she is then in compliance with such terms and conditions as the Committee may from time to time establish for the implementation of the Plan, including, but not limited to, any condition the Committee may deem necessary or appropriate for the Company to meet its obligations under the Plan.

 

Section 3.3         Termination and Suspension of Participation. Once an individual has become a Participant, participation shall continue until payment in full of all benefits to which the Participant or Beneficiary is entitled under the Plan. 

 

Section 3.4.        Missing Persons. Each Participant and Beneficiary entitled to receive benefits under the Plan shall be obligated to keep the Company informed of his or her current address until all Plan benefits that are due to be paid to the Participant or Beneficiary have been paid to him or her. If, after having made reasonable efforts to do so, the Company is unable to locate the Participant or Beneficiary for purposes of making a distribution, the Participant’s or Beneficiary’s Plan benefit will be forfeited. In no event will a Participant’s or Beneficiary’s benefit be paid to him or her later than the date otherwise required by the Plan.

 

Section 3.5.        Relationship to Other Plans. Participation in the Plan shall not preclude participation of the Participant in any other fringe benefit program or plan sponsored by an Affiliate for which the Participant would otherwise be eligible. Notwithstanding anything in the Plan to the contrary, to the extent permitted by Section 409A, the Committee, or anyone to whom the Committee has delegated this authority pursuant to Section 10.4, may reduce the benefits payable to a Participant under the Plan if, and to the extent that, benefits are payable to the Participant under another similar plan or arrangement maintained by the Company or an Affiliate. The Committee (or its delegate) shall have complete and absolute discretion to determine whether another
benefit plan or arrangement maintained by the Company or an Affiliate is similar to the Plan, whether the benefit under the Plan can be reduced in a manner that does not cause a violation of Section 409A, and the amount of the reduction to be applied.

 

	
             
 	
            ARTICLE 4.
 	
            RETIREMENT PLAN SUPPLEMENTAL BENEFIT
 

 

Section 4.1.         Calculation of Retirement Plan Supplemental Benefit. An Eligible Employee shall earn a Retirement Plan Supplemental Benefit as of any determination date in an amount equal to the lump sum actuarial equivalent value of his or her Unrestricted Retirement Plan Benefit less the lump sum actuarial equivalent value of his or her Actual Retirement Plan Benefit, determined as of the determination date. For purposes hereof, the determination date is the first day of the month. The lump sum actuarial equivalent value shall be determined in each case by use of the otherwise applicable interest rates and other assumptions under the Retirement Plan in determining actuarially equivalent benefits.

 

For purposes hereof, an Eligible Employee’s Unrestricted Retirement Plan Benefit as of any determination date equals the vested benefit that such individual would have accrued under the Retirement Plan as of such date under the otherwise applicable provisions of the Retirement Plan, but determined for periods from and after May 1, 1986, without application of the Section 415 Limitation or the Section 401(a)(17) Limitation and based upon the compensation that would have been paid to the Eligible Employee during the year but for his or her election to reduce his or her compensation under the Capital Accumulation Plan or the Option Replacement Plan. 

 

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For purposes hereof, compensation that is reduced pursuant to such an election shall be taken into account for the Plan Year during which such compensation would have been paid to the Eligible Employee but for such election and only to the extent that such compensation would otherwise be taken into account under the Retirement Plan in calculating benefits thereunder had such compensation otherwise been paid directly to the Eligible Employee (but without regard to application of the Section 401(a)(17) Limitation).

 

For purposes hereof, an Eligible Employee’s Actual Retirement Plan Benefit as of any determination date equals the vested benefit that the individual has actually accrued as of such date under the provisions of the Retirement Plan, after taking into account all applicable limitations on contributions, benefits and compensation.

 

An Eligible Employee’s Unrestricted Retirement Plan Benefit and Actual Retirement Plan Benefit shall be determined after giving effect to the election a Participant makes under Section 3.2 of the Retirement Plan (i.e., the election to receive a contribution to a Personal Investment Account under the Savings and Investment Plan, the final average pay benefit under the Retirement Plan or the personal pension account benefit under the Retirement Plan) for benefits accruing under the Retirement Plan on or after May 1, 2005.

 

Section 4.2.          Establishment of Nonqualified Retirement Plan Account. A Participant’s Retirement Plan Supplemental Benefit shall be determined as of the first day of the month following the month in which the Participant has a Separation from Service, and the lump sum value of such Retirement Plan Supplemental Benefit shall be credited as of such date to a bookkeeping account established for the Participant on the books and records of the Company, referred to as the “Nonqualified Retirement Plan Account.”

 

In the event a Participant terminates employment as a result of death, the value of the benefits, if any, to be credited to his or her Nonqualified Retirement Account shall be based upon the lump sum actuarial equivalent value of the death benefits that would be paid under the Retirement Plan under the same assumptions as used under Section 4.1 hereof in determining the Participant’s Unrestricted Retirement Plan Benefit (that is, without regard to the Section 415 Limitation and the Section 401(a)(17) Limitation and without regard to any election the Participant may have made under the Capital Accumulation Plan or the Option Replacement Plan to reduce his or her compensation) less the lump sum actuarial equivalent value of death benefits actually payable with respect to such Participant under the Retirement Plan, if any, taking into account all applicable limitations on contributions,
benefits and compensation.

 

Section 4.3.          Interest Credited to Nonqualified Retirement Plan Account. All amounts credited to the Nonqualified Retirement Plan Account from time to time shall be credited with interest at a rate that is equal to the pre-retirement interest rate or rates used by the Retirement Plan during the period for which interest is to be so credited for purposes of determining actuarially equivalent benefits under the Retirement Plan. Interest as so determined shall be compounded monthly during the Plan Year.

 

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Section 4.4.          Payment of Nonqualified Retirement Plan Account. Payment to a Participant of his or her Nonqualified Retirement Plan Account shall commence within 90 days following the six month anniversary of his or her Separation from Service. All distributions of the Nonqualified Retirement Account will be made in cash. If the value of the Participant’s Nonqualified Retirement Account, determined as of the date on which such Account is established, is greater that $100,000, the Account together with interest thereon shall be paid to the Participant on a monthly basis over a 15-year period in 180 equal monthly installments. If the value of the Participant’s Nonqualified Retirement Account, determined as of the date on which such Account is
established, is $100,000 or less, the Account together with interest thereon shall be paid to the Participant in a lump sum.

 

	
             
 	
            ARTICLE 5.
 	
            DEFINED CONTRIBUTION SUPPLEMENTAL BENEFIT
 

 

Section 5.1.          Nonqualified Defined Contribution Account. The Company previously established an Account on behalf of each Participant entitled to a Defined Contribution Supplemental Benefit (as defined in the Predecessor Plan and commonly referred to as the “ESOP restoration benefit”) referred to as the “Nonqualified Defined Contribution Account.”  All contributions to the Nonqualified Defined Contribution Account ceased effective April 30, 2005. A Participant’s Nonqualified Defined Contribution Account, if any, will continue to vest according to the terms of the Predecessor Plan.

 

Section 5.2           Gains Credited to Nonqualified Defined Contribution Account. A Participant’s Defined Contribution Supplemental Benefit is expressed in the form of the right to receive Stock. Because of this, the Nonqualified Defined Contribution Account is adjusted to reflect Stock splits, Stock dividends and recapitalizations in such manner as may be determined by the Committee. The Committee may also, in its discretion, adjust the Nonqualified Defined Contribution Account to reflect dividends payable with respect to the Stock from time to time in such manner as it deems appropriate.

 

Section 5.3           Payment of Nonqualified Defined Contribution Account. Payment to a Participant of his or her Nonqualified Defined Contribution Account shall be made within 90 days following the end of the Plan Year in which the Participant’s Separation from Service occurs. Payment shall be made in Stock in the form of a lump sum.

 

	
             
 	
            ARTICLE 6.  
 	
            PERSONAL INVESTMENT ACCOUNT SUPPLEMENTAL BENEFIT
 

 

Section 6.1.          Calculation of Personal Investment Account Supplemental Benefit. An Eligible Employee who, pursuant to Section 3.2 of the Retirement Plan, elects to participate in the Personal Investment Account Benefit under the Savings and Investment Plan, shall be credited with a Personal Investment Account Supplemental Benefit as of the end of each Plan Year commencing May 1, 2005, in an amount equal to his or her Unrestricted Personal Investment Account Allocation for such year less his or her Actual Personal Investment Account Allocation for such year; provided, however, that for the year in which the Participant has a Separation from Service, the Participant’s Personal Investment Account Supplemental Benefit for such year shall be determined as of the
end of the month in which the Separation from Service occurs.

 

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An Eligible Employee’s Unrestricted Personal Investment Account Allocation for a year equals the dollar amount that would have been allocated by the Company to his or her Personal Investment Account for the year, but without application of the Section 415 Limitation or the Section 401(a)(17) Limitation and based upon the compensation that would have been paid to the Eligible Employee during the year but for his or her election to reduce his or her compensation under the Capital Accumulation Plan or the Option Replacement Plan. For purposes hereof, compensation that is reduced pursuant to such an election shall be taken into account for the Plan Year during which such compensation would have been paid to the Eligible Employee but for such election and only to the extent that such compensation would otherwise be taken into account under the Savings and Investment Plan in calculating
benefits thereunder had such compensation otherwise been paid directly to the Eligible Employee (but without regard to application of the Section 401(a)(17) Limitation).

 

An Eligible Employee’s Actual Personal Investment Account Allocation for a year equals the dollar amount that the Company actually allocates as a contribution to the Eligible Employee’s Personal Investment Account for such year.

 

Section 6.2.          Establishment of Nonqualified Personal Investment Account. The Personal Investment Account Supplemental Benefit to be credited to a Participant for a Plan Year under Section 6.1 shall be credited as of the last day of such year (except for the Plan Year in which a Participant has a Separation from Service, in which case it shall be credited as of the last day of the month in which the Separation from Service occurs) to an account established on the books and records of the Company, referred to as the “Nonqualified Personal Investment Account.”

 

Section 6.3.          Crediting Gains and Losses to Nonqualified Personal Investment Account. The Committee shall designate the manner in which a Participant’s Nonqualified Personal Investment Account is to be credited with gains and losses as described on Schedule A hereto, which Schedule may be amended from time to time in the Committee’s discretion. If the Committee designates specific investment funds to serve as an index for crediting gains and losses to a Participant’s Nonqualified Personal Investment Account:  (a) the Participant shall be entitled to designate which such fund or funds shall be used to measure gains and losses on his or her Nonqualified Personal Investment Account and to change such designation in accordance with rules established
by the  Committee; (b) the Participant’s Nonqualified Personal Investment Account will be credited with gains and losses as if invested in such fund or funds in accordance with the Participant’s designation and the rules established by the Committee; and (c) the Committee may, in its sole discretion, eliminate any investment fund or funds previously designated by it, substitute a new investment fund or funds therefore, or add investment fund or funds, at any time. If the Committee makes any such investment funds available for this purpose, the Company shall have no obligation to actually invest any amounts in any such investment funds. Unless the Committee adopts a different rule, investment designations may be changed, generally, on a daily basis.

 

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Section 6.4.          Vested Interest in Nonqualified Personal Investment Account. A Participant’s vested interest in his or her Nonqualified Personal Investment Account shall be determined in the same manner as the Participant’s vested interest in his or her Personal Investment Account, and the Company may forfeit the non-vested portion of the Participant’s Nonqualified Personal Investment Account under the same rules and subject to the same limitations as provided for the Personal Investment Account under the Savings and Investment Plan. Notwithstanding the preceding sentence, a Participant shall not earn a fully-vested interest in his or her Nonqualified Personal Investment Account as a result of the termination or partial termination of the Plan in
those situations where the Participant is not otherwise fully vested in such Account.

 

Section 6.5.          Payment of Nonqualified Personal Investment Account. Payment to a Participant of his or her Nonqualified Personal Investment Account shall commence within 90 days following the six month anniversary of his or her Separation from Service. All distributions of the Nonqualified Personal Investment Account will be paid in the form of cash. If the value of the Participant’s Nonqualified Personal Investment Account, determined as of the date on which the Participant’s Separation from Service occurs, is greater that $100,000, the Account shall be paid to the Participant on a monthly basis over a over a fifteen-year period in 180 equal monthly installments. Gains and losses pursuant to Section 6.3 shall continue to be credited on the declining
balance of the Account during the payout period. If the value of the Participant’s Nonqualified Personal Investment Account, determined as of the date on which the Participant’s Separation from Service occurs, is $100,000 or less, the Account shall be paid to the Participant in a lump sum.

 

	
             
 	
            ARTICLE 7.
 	
            DEATH BENEFITS
 

 

Section 7.1           Form and Time of Payment. If a Participant dies before all amounts in an Account have been distributed to him or her (whether the Participant’s death occurs before or after distributions have commenced to the Participant), the Account balance, to the extent then vested, shall be paid to the Participant’s Beneficiary in a lump sum within 90 days after the Participant’s death.

 

Section 7.2           Beneficiary.

 

7.2.1       Designation of Beneficiary. Each Participant has the right to designate primary and contingent Beneficiaries for death benefits payable under the Plan. Such Beneficiaries may be individuals or trusts for the benefit of individuals. A Beneficiary designation by a Participant shall be in writing on a form acceptable to the Committee and shall only be effective upon delivery to the Company. A Beneficiary designation may be revoked by a Participant at any time by delivering to the Company either written notice of revocation or a new Beneficiary designation form. The Beneficiary designation form last delivered to the Company prior to the death of a Participant shall control. 

 

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7.2.2       Failure to Designate Beneficiary. In the event there is no Beneficiary designation on file with the Company at the Participant’s death, or if all Beneficiaries designated by a Participant have predeceased the Participant, any benefits payable pursuant to this Article 7 will be paid to the Participant’s surviving spouse, if living; or if the Participant does not leave a surviving spouse, to the Participant’s surviving issue by right of representation; or, if there are no such surviving issue, to the Participant’s estate. 

 

	
             
 	
            ARTICLE 8.
 	
            CHANGE IN CONTROL PROVISIONS
 

 

Section 8.1.          Application of Article 8. To the extent applicable, the provisions of this Article 8 relating to an Event of change in control of the Company shall control, notwithstanding any other provisions of the Plan to the contrary, and shall supersede any other provisions of the Plan to the extent inconsistent with the provisions of this Article 8.

 

Section 8.2.          Payments to and by the Trust. Pursuant to the terms of the Trust, the Company is required to make certain payments to the Trust if an Event occurs or if the Company determines that it is probable that an Event may occur. The obligation of the Company to make such payments shall be considered an obligation under the Plan; provided, however, that such obligation shall at all times be and remain subject to the terms of the Trust as in effect from time to time.

 

Section 8.3.          Legal Fees and Expenses. The Company shall reimburse a Participant or his or her Beneficiary for all reasonable legal fees and expenses incurred by such Participant or Beneficiary after the date of an Event in seeking to obtain any right or benefit provided by the Plan; provided however, that:  (a) any such reimbursement shall be made during a period not to exceed 20 years following the date of the Event; (b) the amount eligible for reimbursement during a taxable year of the Participant or Beneficiary shall not affect the amount eligible for reimbursement in any other taxable year; (c) the reimbursement is made on or before the last day of the Participant’s or Beneficiary’s taxable year following the taxable year in which the legal fees
and expenses are incurred; and (d) the right to reimbursement is not subject to liquidation or exchange for another benefit. 

 

Section 8.4.          Late Payment and Additional Payment Provisions. If after the date of an Event the Company delays a payment required to be made under the Plan past the final date that the payment was due to be made, the amount of each such delayed payment shall be credited with interest at the rate of five percent per year, compounded quarterly, from the date on which the distribution was required to be made under the terms of the Plan until the actual date of the distribution. In the event that this interest is to be credited for some period less than a full calendar quarter, the interest shall be determined and compounded for the fractional quarter. This interest represents a late payment penalty for the delay in payment and is intended to supplement any other
interest or gains credited to a Participant’s Account under the Plan.

 

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Any benefit payments made by the Company after the date on which a benefit distribution was required to be made under the terms of the Plan shall be applied first against the first due of such benefit distributions (with application first against any applicable late payment penalty and next against the benefit amount itself) until fully paid, and next against the next due of such payments in the same manner, and so forth, for purposes of calculating the late payment penalties hereunder.

 

In the event that payment of benefits has commenced to a Participant or Beneficiary prior to the date of an Event, then the date on which distribution was required to be made under the terms of the Plan shall be determined with reference to the payment provision that was in effect prior to the date of the Event. No adjustment may be made to any payment form which was in effect prior to the date of an Event with respect to any Account which would have the effect of delaying payments otherwise to be made under the payment form or otherwise increasing the period of time over which payments are to be made.

 

Participants and their Beneficiaries shall be entitled to benefit payment under the Plan plus the late payment penalty referred to hereinabove first from the Trust and secondarily from the Company, as otherwise provided in Section 8.2.

 

	
             
 	
            ARTICLE 9.
 	
            FUNDING
 

 

Section 9.1.          Source of Benefits. All benefits under the Plan shall be paid when due by the Company out of its assets or from the Trust.

 

Section 9.2.          No Claim on Specific Assets. No Participant shall be deemed to have, by virtue of being a Participant in the Plan, any claim on any specific assets of the Company such that the Participant would be subject to income taxation on his or her benefits under the Plan prior to distribution and the rights of Participants and Beneficiaries to benefits to which they are otherwise entitled under the Plan shall be those of an unsecured general creditor of the Company.

 

	
             
 	
            ARTICLE 10.
 	
            ADMINISTRATION
 

 

Section 10.1.        Administration. The Plan shall be administered by the Committee. The Company shall bear all administrative costs of the Plan other than those specifically charged to a Participant or Beneficiary.

 

Section 10.2.        Powers of Committee. In addition to the other powers granted under the Plan, the Committee shall have all powers necessary to administer the Plan, including, without limitation, powers to:

 

	
             
 	
            (a)
 	
            interpret the provisions of the Plan;
 

 

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 (b)           establish and revise the method of accounting for the Plan and to maintain the Accounts; and

 

 (c)           establish rules for the administration of the Plan and to prescribe any forms required to administer the Plan.

 

Section 10.3.        Actions of the Committee. Except as modified by the Board, the Committee (including any person or entity to whom the Committee has delegated duties, responsibilities or authority, to the extent of such delegation) has total and complete discretionary authority to determine conclusively for all parties all questions arising in the administration of the Plan, to interpret and construe the terms of the Plan, and to determine all questions of eligibility and status of employees, Participants and Beneficiaries under the Plan and their respective interests. Subject to the claims procedures of Section 10.6, all determinations, interpretations, rules and decisions of the Committee (including those made or established by any person or entity to whom the Committee has
delegated duties, responsibilities or authority, if made or established pursuant to such delegation) are conclusive and binding upon all persons having or claiming to have any interest or right under the Plan.

 

Section 10.4.        Delegation. The Committee, or any officer designated by the Committee, shall have the power to delegate specific duties and responsibilities to officers or other employees of the Company or other individuals or entities. Any delegation may be rescinded by the Committee at any time. Each person or entity to whom a duty or responsibility has been delegated shall be responsible for the exercise of such duty or responsibility and shall not be responsible for any act or failure to act of any other person or entity.

 

Section 10.5.        Reports and Records. The Committee, and those to whom the Committee has delegated duties under the Plan, shall keep records of all their proceedings and actions and shall maintain books of account, records, and other data as shall be necessary for the proper administration of the Plan and for compliance with applicable law.

 

Section 10.6.        Claims Procedure. The Committee shall notify a Participant in writing within 90 days of the Participant’s written application for benefits of his or her eligibility or non-eligibility for benefits under the Plan. If the Committee determines that a Participant is not eligible for benefits or full benefits, the notice shall set forth:  (a) the specific reasons for such denial; (b) a specific reference to the provision of the Plan on which the denial is based; (c) a description of any additional information or material necessary for the claimant to perfect his or her claim, and a description of why it is needed; and (d) an explanation of the Plan’s claims review procedure and other appropriate information as to the steps to be taken if the Participant
wishes to have his or her claim reviewed. If the Committee determines that there are special circumstances requiring additional time to make a decision, the Committee shall notify the Participant of the special circumstances and the date by which a decision is expected to be made, and may extend the time for up to an additional 90-day period. 

 

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If a Participant is determined by the Committee to be not eligible for benefits, or if the Participant believes that he or she is entitled to greater or different benefits, the Participant shall have the opportunity to have his or her claim reviewed by the Committee by filing a petition for review with the Committee within 60 days after receipt by the Participant of the notice issued by the Committee. If a Participant does not appeal on time, the Participant will lose the right to appeal the denial and the right to file suit under ERISA, and the Participant will have failed to exhaust the Plan’s internal administrative appeal process, which is generally a prerequisite to bringing suit. Said petition shall state the specific reasons the Participant believes he or she is entitled to benefits or greater or different benefits. Within 60 days after receipt by the Committee of said petition, the Committee
shall afford the Participant (and his or her counsel, if any) an opportunity to present the Participant’s position to the Committee orally or in writing, and the Participant (or his or her counsel) shall have the right to review the pertinent documents, and the Committee shall notify the Participant of its decision in writing within said 60-day period, stating specifically the basis of the decision written in a manner calculated to be understood by the Participant and the specific provisions of the Plan on which the decision is based. If, because of the need for a hearing, the 60-day period is not sufficient, the decision may be deferred for up to another 60-day period at the election of the Committee, but notice of this deferral shall be given to the Participant. In the event an appeal of a denial of a claim for benefits is denied, any lawsuit to challenge the denial of such claim must be brought within one year of the date the Committee has rendered a
final decision on the appeal.

 

	
             
 	
            ARTICLE 11.
 	
            AMENDMENTS AND TERMINATION
 

 

Section 11.1.        Amendments. The Company, by action of the Compensation Committee of the Board, or the Chief Executive Officer of the Company or the Senior Vice President of Human Resources, to the extent authorized by the Compensation Committee of the Board, may amend the Plan, in whole or in part, at any time and from time to time. Any such amendment shall be filed with the Plan documents. No amendment, however, may be effective to reduce the vested amounts credited to a Participant’s Account (or that would be so credited with respect to a Participant who is actively employed immediately prior to the date of amendment had the Participant had a Separation from Service and had his or her Account been established immediately prior to such date), as determined immediately
prior to such amendment, except that the Company may change the investment funds or funds that it may make available for crediting gains and losses pursuant to Section 6.3 at any time in its discretion. 

 

Section 11.2.        Termination. The Company reserves the right to terminate the Plan at any time by action of the Compensation Committee of the Board. Upon termination of the Plan, all accruals and contributions shall immediately cease. Termination of the Plan shall not be effective to reduce the vested amounts credited to a Participant’s Account (or that would be so credited with respect to a Participant who is actively employed immediately prior to the date of such termination had the Participant had a Separation from Service and had his or her Account been established immediately prior to such date). If the Plan is terminated, payments from the Accounts of all Participants and Beneficiaries shall be made at the time and in the manner otherwise
specified in the Plan, except as otherwise determined by the Company at the time of termination, subject to Article 8.

 

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            ARTICLE 12.
 	
            MISCELLANEOUS
 

 

Section 12.1.        No Guarantee of Employment. Neither the adoption nor the maintenance of the Plan shall be deemed to be a contract of employment between any Affiliate and any Participant. Nothing contained herein shall give any Participant the right to be retained in the employ of an Affiliate or to perform services for an Affiliate, or to interfere with the right of an Affiliate to discharge any Participant at any time; nor shall it give an Affiliate the right to require any Participant to remain in its employ or to perform services for it or to interfere with the Participant’s right to terminate his or her employment or performance of services at any time.

 

Section 12.2.        Release. Any payment of benefits to or for the benefit of a Participant or a Participant’s Beneficiary that is made in good faith by the Company in accordance with the Company’s interpretation of its obligations under the Plan shall be in full satisfaction of all claims against the Company for benefits under the Plan to the extent of such payment.

 

Section 12.3.        Notices. Any notice permitted or required under the Plan shall be in writing and shall be hand-delivered or sent, postage prepaid, by first class mail, or by certified or registered mail with return receipt requested, to the principal office of the Company, if to the Company, or to the address last shown on the records of the Company, if to a Participant or Beneficiary. Any such notice shall be effective as of the date of hand-delivery or mailing.

 

Section 12.4.        Nonalienation. No benefit payable at any time under the Plan shall be subject in any manner to alienation, sale, transfer, assignment, pledge, levy, attachment, or encumbrance of any kind by any Participant or Beneficiary, except with respect to a Domestic Relations Order.

 

Section 12.5.        Withholding. The Company may withhold from any payment of benefits or other compensation payable to a Participant or Beneficiary, or the Company may direct the trustee of the Trust to withhold from any payment of benefits to a Participant or Beneficiary, such amounts as the Company determines are reasonably necessary to pay any taxes or other amounts required to be withheld under applicable law.

 

Section 12.6.        Captions. Article and section headings and captions are provided for purposes of reference and convenience only and shall not be relied upon in any way to construe, define, modify, limit, or extend the scope of any provision of the Plan.

 

Section 12.7.        Applicable Law. The Plan and all rights hereunder shall be governed by and construed according to the laws of the State of Minnesota, except to the extent such laws are preempted by the laws of the United States of America.

 

Section 12.8.        Invalidity of Certain Provisions. If any provision of the Plan is held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision of the Plan and the Plan shall be construed and enforced as if such provision had not been included. The Plan is intended to comply in form and operation with Section 409A, and shall be construed accordingly. If any provision of the Plan does not conform to the requirements of Section 409A, the Plan shall be construed and enforced as if such provision had not been included.

 

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Section 12.9.        No Other Agreements. The terms and conditions set forth herein constitute the entire understanding of the Company and the Participants with respect to the matters addressed herein.

 

Section 12.10.      Incapacity. In the event that any Participant is unable to care for his or her affairs because of illness or accident, any payment due may be paid to the Participant’s spouse, parent, brother, sister or other person deemed by the Committee to have incurred expenses for the care of such Participant, unless a duly qualified guardian or other legal representative has been appointed.

 

Section 12.11.      Electronic Media. Notwithstanding anything in the Plan to the contrary, but subject to the requirements of ERISA, the Code, or other applicable law, any action or communication otherwise required to be taken or made in writing by a Participant or Beneficiary or by the Company or Committee shall be effective if accomplished by another method or methods required or made available by the Company or Committee, or their agent, with respect to that action or communication, including e-mail, telephone response systems, intranet systems, or the Internet.

 

Section 12.12.      Delay of Distributions Upon Certain Events

 

          
            Delay in Distributions

 

 (a)          Except as set forth in Section 12.13, if a Participant is a Specified Employee as of the date of his or her Separation from Service, any distributions that under the terms of the Plan are to commence to the Participant on his or her Separation from Service (“separation distributions”) shall commence within 90 days after the Participant’s “delayed distribution date” (as defined below). In this case, the Company shall, in its discretion, determine whether the first separation distribution to the Participant shall include the aggregate amount of any separation distributions that, but for this paragraph (a), would have been paid to the Participant from the date of his or her Separation from Service until the delayed distribution date, or whether each separation distribution shall be delayed
for six months. For purposes of this paragraph (a), a Specified Employee’s “delayed distribution date” is the first day of the seventh month following the Participant’s Separation from Service, or if earlier, the date of the Participant’s death.

 

(b)        A payment under the Plan may be delayed by the Company under any of the following circumstances so long as all payments to similarly situated Participants are treated on a reasonably consistent basis:

 

17

(i)        The Company reasonably anticipates that if such payment were made as scheduled, the Company’s deduction with respect to such payment would not be permitted under Section 162(m) of the Code, provided that the payment is made either during the first Plan Year in which the Company reasonably anticipates, or should reasonably anticipate, that if the payment is made during such year, the deduction of such payment will not be barred by application of Section 162(m) or during the period beginning with the date of the Participant’s Separation from Service and ending on the later of the last day of the Company’s fiscal year in which the Participant has a Separation from Service or the 15th day of the third month following the Separation from Service.

 

(ii)        The Company reasonably anticipates that the making of the payment will violate Federal securities laws or other applicable law, provided that the payment is made at the earliest date at which the Company reasonably anticipates that the making of the payment will not cause such violation.

 

(iii)       Upon such other events as determined by the Company and according to such terms as are consistent with Section 409A or are prescribed by the Commissioner of Internal Revenue.

 

Section 12.13.    Acceleration of Distributions Upon Certain Events. The Company may, in its discretion, distribute all or a portion of a Participant’s Accounts at an earlier time and in a different form than specified above in this Article 5 under the circumstances described below:

 

(a)        As may be necessary to fulfill a Domestic Relations Order. Distributions pursuant to a Domestic Relations Order shall be made according to administrative procedures established by the Company.

 

(b)        To the extent reasonably necessary to avoid the violation of ethics laws or conflict of interest laws pursuant to Section 1.409A-3(j)(ii) of the Treasury regulations.

 

(c)        To pay FICA on amounts deferred under the Plan and the income tax resulting from such payment.

 

18

(d)        To pay the amount required to be included in income as a result of the Plan’s failure to comply with Section 409A.

 

(e)        If the Company determines, in its discretion, that it is advisable to liquidate the Plan in connection with a termination of the Plan pursuant to Section 11.2, subject to Article 8.

 

(f)        As satisfaction of a debt of the Participant to an Affiliate, where such debt is incurred in the ordinary course of the service relationship between the Affiliate and the Participant, the entire amount of the reduction in any Plan Year does not exceed $5,000, and the reduction is made at the same time and in the same amount as the debt otherwise would have been due and collected from the Participant. 

 

Notwithstanding anything in this Section 12.13 to the contrary, the Company shall not provide the Participant with discretion or a direct or indirect election regarding whether a payment is accelerated pursuant to this Section 12.13.

 

 

	
            Dated:
 	
             
 

 

 

	
             
 	
             
 	
            MEDTRONIC, INC.  
 
	 
	 
	
              
 	
             
 	
            By 
 	
              
 
	
             
 	
             
 	
             
 	
            Its Chief Executive Officer
 

 

 

 

 

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SCHEDULE A

 

Manner of Crediting Gains and Losses to Personal Investment Account

Pursuant to Section 6.3

 

The Personal Investment Accounts of Participants shall be credited with gains and losses as if invested in one or more of the investments funds listed below that are selected by the Company and communicated to the Participants from time to time, in the proportions designated by the Participant on an investment election form submitted to the Company by the Participant. The investment election form shall be submitted to the Company in the form and manner specified by the Committee, which may be electronically pursuant to Section 12.11. Until and unless changed by the Committee, Participants shall be permitted to change investment elections, generally, on a daily basis.

 

Medtronic Interest Income Fund

Vanguard Total Bond Market Index Fund

Vanguard Wellington Fund

Vanguard 500 Index Fund

Vanguard Windsor II Fund

Vanguard Morgan Growth Fund

Vanguard PRIMECAP Fund

Vanguard Extended Market Index Fund

Vanguard Explorer Fund

Vanguard International Growth Fund

Medtronic, Inc. Stock Fund

 

 

 

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