Document:

EXHIBIT
10.1

 

Amendment
to 2003 Long-Term Incentive Plan

 

On August 28,
2003, the Medtronic, Inc. Shareholders approved the Medtronic 2003 Long-Term
Incentive Plan (the “Plan”). 
Subsequently, on October 23, 2003, the Medtronic, Inc. Board of
Directors amended the Plan to limit the usage of Restricted Stock under the
Plan as follows:

 

The first sentence
of Section 3 of the Plan, entitled “Shares Subject to the Plan,” was amended to
add the underscored language below and now reads in its entirety as follows:

 

The total number of Shares which
may be issued under the Plan is 60,000,000, of which no more than 50% may be
issued in the form of Restricted Stock or Other Stock-Based Awards payable in
Shares, provided, however, that no more than 5% of the Shares reserved under
the Plan shall be granted pursuant to Restricted Stock Awards if such Award (a)
shall vest in full prior to three years from the Award date or (b) if a
condition to such vesting is based, in whole or in part, upon performance of
the Shares or any aspect of the Company’s operations and such vesting could
occur over a period of less than one year from the Award date.EXHIBIT
10.1

 

FORM
OF STOCK GRANT AGREEMENT

 

PROVIDIAN FINANCIAL CORPORATION

2000 STOCK INCENTIVE PLAN (SIP)

Name

 

Award Date: 

 

Award
Description

 

	
  SIP
  Nonrestricted Portion:

  	
   

  	
  $

  	
  <<Amount>>

  	
   

  
	
  SIP Nonrestricted
  Shares (Rounded down to nearest whole share):

  	
   

  	
  <<Number>>

  	
   

  
	
  SIP Restricted
  Portion:

  	
   

  	
  $

  	
  <<Amount>>

  	
   

  
	
  SIP Restricted
  Shares (Rounded down to nearest whole share):

  	
   

  	
  <<Number>>

  	
   

  
	
  Fair Market Value
  per share on <<Award Date>>:

  	
   

  	
  $

  	
  <<Price>>

  	
   

  

 

GENERAL PROVISIONS:

You have elected
to receive a portion of your annual retainer for the 12 months beginning
June 1, 20[    ] (the “Board Year”) in Nonrestricted
Stock.  The Nonrestricted Stock is
matched by a grant of Restricted Stock equal in value to 25% of the value of
the Nonrestricted Stock.  The Restricted
Stock will be subject to vesting and forfeiture restrictions.  You will have the right to vote and to
receive dividend payments on the Restricted Stock.

 

This award is
subject to the terms and conditions of the SIP and to all interpretations,
amendments, rules and regulations that may from time to time be promulgated or
adopted in connection with the SIP.  In
the event of any conflict between the provisions set forth herein and the
provisions of the SIP, the provisions of the SIP shall control.

 

VESTING PROVISIONS:

Fifty percent of
the Restricted Stock will vest on the third anniversary of the first day of the
Board Year, and the remaining 50% will vest on the sixth anniversary of the
first day of the Board Year.  However,
if you dispose of any Nonrestricted Stock awarded (or to be awarded) to you as
part of your annual retainer for the Board Year before all of the matching
shares of Restricted Stock for the Board Year (the “related Restricted Stock”)
have vested, you will forfeit the entire unvested portion of the related
Restricted Stock.  Both the
Nonrestricted Stock and the Restricted Stock will be deposited in an escrow
account designated by us.  The shares of
Restricted Stock must remain in the escrow account  until they have vested. We also require that all of the
Nonrestricted Stock awarded to you as part of your annual retainer for the
Board Year remain in the escrow account 
until all of the related Restricted Stock has vested.

 

STOCK DISTRIBUTION:

The Nonrestricted
Stock will be released to you upon expiration of six years following the start
of the Board Year.  You may request an
earlier release of the Nonrestricted Stock, but you will then forfeit all
unvested shares of the related Restricted Stock. Shares of the Restricted Stock
will be released to you when they become vested.

 

TAXATION ON
RESTRICTED SHARES:

Applicable taxes associated with the shares
of Restricted Stock will be due as these shares vest.Exhibit 10.1

 

MASTER AGREEMENT

 

This MASTER AGREEMENT (this “Agreement”), dated as of April 29, 2003,
is made by and between:

 

SCL Ventures Ltd. (“SCL”), a Bermuda corporation;

 

Weida Communications Technology
Company Limited (“Weida”), a
People’s Republic of China (“PRC”)
corporation;

 

and Li Shun Xing, Li Xiang
Ning, Pang Da Qing, and Xie Li (the “Existing
Shareholders”).

 

In this Agreement, SCL, Weida,
and the Existing Shareholders may be referred to collectively as the “Parties”, and each individually as a “Party”. 
The Existing Shareholders are a Party to this Agreement both
collectively and each individually.

 

WHEREAS the Existing
Shareholders are all of the shareholders of Weida; and

 

WHEREAS, SCL and the Existing
Shareholders desire to convert Weida into a Sino-foreign Equity Joint Venture
(the “Weida EJV”), of which SCL
shall have 25% equity ownership; and

 

WHEREAS, the Existing
Shareholders intend to establish a Hong Kong company (the ”HK Company”), and that HK Company will
establish a wholly foreign-owned enterprise (the ”Weida WOFE”) under the laws of the PRC;
and

 

WHEREAS, the Parties intend
that subsequent to the establishment of the Weida EJV and the Weida WOFE, there
shall be certain agreements made by and between the Weida EJV, and the Weida WOFE
(including provisions for the Weida WOFE to receive from the Weida EJV an
amount equal to those amounts which the Weida WOFE would have received if the
Weida WOFE owned 26% equity ownership of the Weida EJV (i.e., the central
intent of this Agreement)); and

 

WHEREAS, subsequent to the
establishment of the Weida EJV and the Weida WOFE, SCL, or its successor where
SCL has merged into a public entity where SCL shareholders retain control of
the merged entity, shall purchase, and the Existing Shareholders shall sell,
all of the shares (i.e., 100% ownership) of the HK Company; and

 

WHEREAS, the Parties desire to
delineate in this Agreement all of their agreements concerning the matters in
the foregoing recitals;

 

NOW THEREFORE, in consideration
of the mutual covenants set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Parties hereby agree as follows:

 

1

 

1.                                       Total
Consideration.  The total
consideration from SCL (including the acquisition of its interest in the Weida
EJV and the acquisition of the shares of the HK Company) shall be
USD 285,000,000, which shall be divided into (a) an equity portion of
USD 125,000,000, and a working capital portion of USD 160,000,000.

 

A.                                   Equity.  The $125,000,000 equity portion shall be
divided and distributed, as follows:

 

(1)                                  $15,000,000,
in cash to the Existing Shareholders, within 30 days after issuance of the
Business Licenses for the Weida EJV and the Weida WOFE; and

 

(2)                                  $110,000,000,
in the common shares of SCL (or the merged entity) at an agreed upon value of
$6.75USD per share, to be issued to the Existing Shareholders on or before
November 30, 2003, subject to the terms and conditions of the Stockholders
Agreement described below.  The issuance
of any and all shares pursuant to this Agreement shall be in strict compliance
with the applicable securities laws of the United States of America.

 

B.                                     Working
Capital.  The $160,000,000 working
capital portion shall be divided and distributed, subject to fulfillment or
waiver of the conditions precedent as follows:

 

(1)                                  USD 805,153
(i.e., RMB 6,666,667) in cash, as contribution to the registered capital of the
Weida EJV, pursuant to paragraph 2.A. below, within 30 days after issuance of
the Weida EJV Business License.

 

(2)                                  USD 159,194,847.  Pursuant to the Weida EJV’s Business Plan
and the Weida WOFE Business Plan, to be approved by the Parties within 30 days
after signing this Agreement, SCL shall provide or arrange for working capital
for the Weida EJV and the Weida WOFE, in the form of equipment leasing, asset
purchases, cash equivalents, or other commercially reasonable forms, from SCL
or third-parties to the Weida EJV and the Weida WOFE, up to an aggregate amount
of USD 159,194,847.  The use of this
working capital shall be determined in accordance with the direction of the
Board of the Weida EJV and the Board of the Weida WOFE.

 

2.                                       Increase
of Weida’s Registered Capital and Conversion of Weida to Weida EJV.

 

A.                                   As
soon as reasonably practical after the signing of this Agreement, the
registered capital of Weida shall be increased, with Weida being simultaneously
converted into the Weida EJV, from RMB 20,000,000 to RMB 26,666,667 with SCL
having the sole right to subscribe for the increased portion of the registered
capital, representing 25% of the equity ownership of Weida.

 

B.                                     For
the purpose of increasing the registered capital of Weida and converting Weida
into the Weida EJV, the Parties shall do any and all acts and sign any and

 

2

 

all documents,
as may be necessary or appropriate, including but not limited to the
following:  passing a Resolution of the
Board of Directors of Weida; signing and submitting for governmental approval
the Capital Increase Contract, the Equity Joint Venture Contract, the Articles
of Association, and any other ancillary documents; and obtaining a Business
License as well as such other documents as required by applicable PRC laws.

 

3.                                       Establishment
of the HK Company and the WOFE.  As
soon as reasonably practical after the signing of this Agreement, the Existing
Shareholders shall (a) establish the HK Company, and (b) establish the
Weida WOFE.  The structure,
constitutional documentation, and characteristics of the HK Company and the
Weida WOFE (including but not limited to the location of the WOFE) shall be
such as to facilitate the purposes and intents of this Agreement and to satisfy
the reasonable requirements of SCL.

 

4.                                       Board
of Directors and Officers of the Weida EJV.  The Weida EJV Board of Directors shall have 5 directors, of whom
the Existing Shareholders shall be entitled to appoint 2 and SCL shall be
entitled to appoint 3.  SCL shall be
entitled to appoint the General Manager and the Chief Financial Officer; the
Existing Shareholders shall be entitled to appoint the Chairman of the Board.

 

5.                                       Conditions
Precedent.  The following matters
are conditions precedent to the obligations of SCL under this Agreement:

 

(1)                                  The
Capital Increase Contract, JV Contract, Articles of Association and any and all
other documents needed to satisfy all necessary authorities of the PRC, have
been duly executed by Weida, the Existing Shareholders, and SCL and the
evaluation report on Weida’s assets required for the such increase of capital
has been obtained pursuant to applicable PRC laws.

 

(2)                                  The
Business License for the Weida EJV has been issued (showing SCL’s 25% equity
ownership), and the Business License for the Weida WOFE has been issued.

 

(3)                                  The
HK Company and the WOFE have been lawfully established (and SCL has acquired
100% ownership of the HK Company), and the Business License for the WOFE has
been issued.

 

(4)                                  The
requirements of the State Administration on Foreign Exchange have been satisfied.

 

(5)                                  The
necessary resolutions of the Board of Directors and the General Meeting of
Weida, and the Board of Directors of SCL, duly approving the transactions
contemplated by this Agreement have been obtained.

 

(6)                                  The
due diligence study by the financial advisors and legal counsel of SCL have
been completed to the satisfaction of SCL, in its sole discretion.

 

3

 

(7)                                  The
Existing Shareholders have executed Employment Agreements acceptable to SCL
Ventures, Ltd.

 

(8)                                  The
Weida EJV, the Weida WOFE, and all other necessary parties shall have executed
and delivered the agreements and documentation described in paragraph 6 below.

 

6.                                       Agreements
Between the Weida EJV and the WOFE. 
The Existing Shareholders shall take all necessary actions and sign all
necessary documents to assure that the Weida EJV and the Weida WOFE make and
enter into the following agreements and such other documents as may be
necessary or appropriate to effectuate the purposes and intents of this
Agreement.

 

A.                                   Service
Agreement.  The Weida WOFE and the
Weida EJV shall enter into a Service Agreement, under which the Weida EJV will
hold the necessary licenses for its business; (ii) the Weida WOFE will provide
to the Weida EJV a portion of the necessary services to operate the business;
and (iii) the Weida WOFE will receive from the Weida EJV, as compensation for
its services, those amounts which the Weida WOFE would have received if the
Weida WOFE owned 26% equity ownership of the Weida EJV (i.e., the central
intent of this Agreement).

 

B.                                     Future
Transfer Agreement.  The Weida WOFE
and the Weida EJV shall enter into a Future Transfer Agreement, which shall
provide that at any and all such times as PRC law permits foreign ownership of
more than percent (25%) of the Weida EJV, then upon the requests (from time to
time) of SCL, the Existing Shareholders shall (or cause their nominees to) take
all necessary actions and sign all necessary documents to transfer additional
ownership of the Weida EJV to SCL, up to the maximum then permitted by PRC law
(up to a 51%).  At such times as SCL
makes such requests, then appropriate adjustments shall be made in the
agreements between the Weida WOFE and the Weida EJV, to effectuate this
Agreement and its central intent that SCL shall be entitled to fifty-one
percent (51%) and the Existing Shareholders shall be entitled to forty-nine
percent (49%) of the equity interest of the Weida EJV.  It is the intent of the parties that the
participation in net profits of the EJV by the WOFE and the current equity
participation of SCL in the EJV be considered for all practical purposes to
satisfy the 51% equity ownership to the extent permitted by law.  The Future Transfer Agreement shall provide
appropriate remedies for SCL in the event that the Existing Shareholders
default in their obligation to transfer additional ownership of the Weida EJV
to SCL.

 

7.                                       Representations,
Warranties, and Covenants.

 

A.                                   Weida
and each of the Existing Shareholders represents, warrants, and covenants to
SCL, that the following matters are entirely true and correct, and they shall
indemnify and hold harmless SCL from and against any and all costs and
liabilities arising out of any breach of the representations, warranties, and
covenants:

 

4

 

1.                                       Due
Organization of Weida.  Weida is
duly organized and validly existing under the laws of the PRC, and has all
necessary corporate power and authority to own its properties and assets and to
carry on its business.

 

2.                                       Authorization.  The execution, delivery and performance of
any document described herein by Weida has been or, where to be entered into at
a later date, will be duly and validly authorized by the board of directors of
Weida and by all other necessary action on the part of Weida.  Any document to which Weida is a party
constitutes or, where to be entered into at a later date, will constitute the
legally valid and binding obligation of Weida.

 

3.                                       No
Conflicts.  The execution, delivery
and performance by Weida of any document or transaction contemplated by this
Agreement will not (i) violate, or constitute a breach or default (whether
upon lapse of time and/or the occurrence of any act or event) under the
constitutional documents of Weida or any other documents or contracts, or
(ii) violate any laws or regulations.

 

4.                                       Registered
Capital and Shareholdings.  The
Existing Shareholders are all of the shareholders of Weida, and they lawfully
hold their respective interests in the registered capital of Weida, free from
any encumbrance or any third-party interest whatsoever.  All of the registered capital of Weida has
been paid up, and none of the Existing Shareholders have ever taken back their
contribution to the registered capital.

 

5.                                       Financial
Statements.  All financial
statements which have been or will be provided to SCL or auditors, including
but not limited to the income statements and statements of cash flow, present
fairly the results of operations and cash flow of Weida for the period covered,
and the balance sheets present fairly the financial condition of Weida as of
their date.

 

6.                                       Undisclosed
Liabilities.  Weida has no
outstanding liabilities, except Liabilities that are disclosed in the financial
statements.

 

7.                                       Taxes.  Weida has filed or will file all required
tax returns and has paid all taxes due for all periods ending prior to the date
of this Agreement, or has made adequate provisions therefore in its books and
records.  To the knowledge of the
Existing Shareholders, Weida has not been the subject of any examination or
investigation by any tax authority.

 

8.                                       Contracts.  All contracts or documents to which Weida is
a party, or to which Weida, or any of its properties is subject, or by which
Weida is bound, has been provided to SCL. 
No breach or default, alleged breach or default, or event which would
(with the passage of time, notice or both) constitute a breach or default under
any such contract or document has occurred.

 

5

 

9.                                       Real
Property.  All of Weida’s interests
in any real property, including but not limited to all of its leasehold
interests, and all encumbrances on Weida’s interests in any real property, have
been disclosed (and copies of all relevant documents provided) to SCL.  No default or event of default on the part
of Weida, or any event which with the giving of notice or passage of time or
both, would constitute a default or event of default has occurred.

 

10.                                 Personal
Property.  All personal property of
Weida which is reflected in the financial statements provided to SCL or which
has been acquired by Weida after the period of such financial statements is
owned by Weida free and clear of any Encumbrances.

 

11.                                 All
machinery, tools and equipment of Weida which are reflected in the financial
statements provided to SCL or which has been acquired by Weida after the period
of such financial statements are in a state of reasonable maintenance and
repair (except for ordinary wear and tear) and are adequate for the conduct of
Weida’s business.

 

12.                                 No
State Assets.  None of the assets of
Weida constitute state-owned assets, and therefore, are not required by PRC
laws to undergo any form of valuation prior to the consummation of the
transactions contemplated in this Agreement.

 

13.                                 Intangible
Property.  Except as disclosed to
SCL in writing, Weida (a) has legally valid rights to and ownership of all
intangible property required in connection with its business, and (b) does not
use any intangible property by consent of any other person.  None of the Existing Shareholders or Weida
has received any notice to the effect (or is otherwise aware) that the
intangible property or any use thereof by Weida conflicts with or infringes the
rights of any other party.

 

14.                                 Licenses
and Permits.  (a) Weida holds all
permits necessary to operate its business as now conducted, and (b) all such
permits are valid, in full force and effect, and will remain so upon
consummation of the transactions contemplated by this Agreement.  To the best knowledge of the Existing Shareholders,
no action against any of such Permits is threatened.

 

15.                                 Legal
Proceedings.  There is no legal or
administrative action pending or threatened against or affecting Weida or any
of its assets.

 

16.                                 Compliance
with Laws.  Weida has conducted its
business in accordance with all applicable laws and regulations.

 

17.                                 Dividends
and Other Distributions.  There has
been no dividend or other distribution of assets declared, issued, or paid to
or for the benefit (whether direct or indirect) of any Existing Shareholder by
Weida.

 

6

 

18.                                 Transactions
with Existing Shareholders.  Except
as previously disclosed in writing to SCL, except insofar as they hold an
equity interest in Weida, none of the Existing Shareholders has any material
interest in any property used in or pertaining to the business of Weida; no
Existing Shareholder is indebted or otherwise obligated to Weida; and Weida is
not indebted or otherwise obligated to any Existing Shareholder, except for
amounts due under normal arrangements applicable to all employees generally as
to salary or reimbursement of ordinary business expenses not unusual in amount
or significance.  The consummation of
the transactions contemplated by this Agreement will not (upon the occurrence
of any act or event, or with the lapse of time) result in any benefit or
payment arising or becoming due from Weida to any Existing Shareholder.

 

19.                                 Receivables.  All receivables of Weida represent sales
actually made in the ordinary course of business, and are current and fully
collectible, net of any reserves or provisions shown on the financial
statements.

 

20.                                 Further
Statement.  The Existing
Shareholders and Weida warrant that Weida, without notice to and consent of
SCL, which consent shall not be unreasonably withheld, will not conduct any of
the following activities after the execution of this Agreement:  (a) any borrowing; (b) creating any
encumbrance on its assets; (c) declaring or in any manner making distribution
of profits or dividends; (d) increasing salary or welfare of its staff; (e)
extending any loan or credit line; (f) making any capital undertaking; or (g)
making repayment of indebtedness in advance.

 

21.                                 No
financial or other information about Weida, or its present or anticipated
business operations, which has been or will be provided to SCL or any auditors,
is incomplete, inaccurate, or misleading in any material aspect.

 

B.                                     SCL
represents, warrants, and covenants to Weida and the Existing Shareholders,
that the following matters are entirely true and correct, and SCL shall
indemnify and hold harmless Weida and the Existing Shareholders from and
against any and all costs and liabilities arising out of any breach of the
representations, warranties, and covenants:

 

(1)                                  Due
Organization of SCL.  SCL is duly
organized and validly existing under the laws of Bermuda, and has all necessary
corporate power and authority to own its properties and assets and to carry on
its business.

 

(2)                                  Authorization.  The execution, delivery and performance of
any document described herein by SCL has been or, where to be entered into at a
later date, will be duly and validly authorized by the board of directors of
SCL and by all other necessary action on the part of SCL.  Any document to which SCL is a party
constitutes or, where to be entered into at a later date, will constitute the
legally valid and binding obligation of SCL.

 

7

 

(3)                                  No
Conflicts.  The execution, delivery
and performance by SCL of any document or transaction contemplated by this
Agreement will not (i) violate, or constitute a breach or default (whether
upon lapse of time and/or the occurrence of any act or event) under the
constitutional documents of SCL or any other documents or contracts, or (ii)
violate any laws or regulations.

 

C.                                     In
the event of a breach of the representations, warranties, and covenants
contained in this paragraph 7 by Weida or the Existing Shareholders, and SCL is
not promptly indemnified and made whole to its reasonable satisfaction, then in
addition to the remedies provided by law or in any other documents, SCL shall
be entitled to reduce the interests of the Existing Shareholders in their
shares or percentage ownership of SCL.

 

8.                                       Termination.  This Agreement shall terminate upon the
fulfillment by all Parties of their respective obligations under this
Agreement, or:  (a) at the option of the
Existing Shareholders upon a material breach by SCL; or (b) at the option of
SCL upon (i) a material breach by Weida or the Existing Shareholders, or
(ii) upon notice by SCL to Weida that the due diligence is not satisfactory.

 

9.                                       Confidentiality.  The Parties shall treat this Agreement as
strictly confidential.

 

10.                                 Costs.  The attorneys’ fees and expenses associated
with (a) the negotiation and preparation of this Agreement and the various
documents mentioned herein, (b) the establishment of the Weida EJV, the HK
Company and the Weida WOFE, and (c) the obtaining of the necessary
governmental approvals, shall be paid by the Weida EJV.

 

11.                                 Miscellaneous.

 

A.                                   No
Party shall assign any of its/his/her rights or obligations under this
Agreement.

 

B.                                     This
Agreement shall be governed by and construed under the laws of Hong Kong,
except as otherwise specifically provided herein.  Any dispute under this Agreement shall be resolved through
arbitration pursuant to the ICC Arbitration Rules.

 

C.                                     This
Agreement may be executed in two or more counterparts.

 

D.                                    Headings
and titles used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement.

 

E.                                      This
Agreement (including all the agreements described herein) constitutes the full
and entire understanding and agreement among the Parties with regard to the
subject matter hereof.  It is
specifically acknowledged that all previous agreements (including but not
limited to the Master Transaction Agreement dated December 7, 2001) are
superseded and void.

 

F.                                      This
Agreement may be amended only with the consent of all the Parties.

 

8

 

G.                                     If
any of the provisions of this Agreement are held to be unenforceable, such
provision shall be excluded from this Agreement and the balance of the
Agreement shall be enforceable.

 

H.                                    This
Agreement is written both in English and Chinese.  The translation of the Chinese version from the English version
shall be duly certified by a PRC qualified law firm.  Both versions shall have the same effect in all respects.

 

I.                                         This
Agreement shall become effective upon the signing of both the English and the
Chinese versions by all the Parties hereto.

 

J.                                        If
any Party shall be prevented from exercising any right or option hereunder, or
if any action to be taken hereunder shall be interrupted, due to epidemic,
fire, act of God, including without limitation the SARS-related issues, wars,
or any other cause beyond the parties control, whether of a similar or
dissimilar nature, such prevention or interruption shall not be deemed a breach
of this Agreement or a cause for forfeiture of the rights hereunder, and the
time for exercise of any such right or option shall be extended for the time
period exercise was prevented.

 

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

 

	
  SCL Ventures
  Ltd.

  
	
   

  
	
  By:

  	
  /s/  Mitchell Sepaniak

  	
   

  
	
   

  
	
   

  
	
  Weida
  Communications Technology Company Limited

  
	
   

  
	
  By:

  	
  /s/  Li Shun Xing

  	
   

  
	
   

  
	
  /s/  Li Shun Xing

  	
   

  
	
  Li Shun Xing

  
	
   

  
	
  /s/  Li Xiang Ning

  	
   

  
	
  Li Xiang
  Ning

  
	
   

  
	
  /s/  Pang Da Qing

  	
   

  
	
  Pang Da Qing

  
	
   

  
	
  /s/  Xie Li

  	
   

  
	
  Xie Li

  

 

9

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