THIRD AMENDMENT TO 364-DAY CREDIT AGREEMENT

Exhibit 4.1

THIRD AMENDMENT TO 364-DAY CREDIT AGREEMENT

THIS THIRD AMENDMENT TO 364-DAY CREDIT AGREEMENT (this “Amendment”), dated as of January 22, 2004, is entered into among MEDTRONIC, INC., a Minnesota corporation (the “Borrower”), the Subsidiaries of the Borrower listed on the signature pages hereto (individually a “Guarantor”, collectively the “Guarantors”), the Lenders identified on the signature pages hereto (the “Lenders”), and BANK OF AMERICA, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”).  Terms used but not otherwise defined herein shall have the meanings provided in the Credit Agreement described below.

W I T N E S S E T H

WHEREAS, the Borrower, the Guarantors, the Lenders, and the Administrative Agent entered into that certain 364-Day Credit Agreement dated as of January 24, 2002, as amended by that certain First Amendment to 364-Day Credit Agreement dated as of August 21, 2002 and that certain Second Amendment to 364-Day Credit Agreement dated as of January 23, 2003 (as previously amended, modified, restated or supplemented from time to time, the “Existing Credit Agreement”); and

WHEREAS, the Borrower and the Lenders have agreed to amend certain provisions of the Existing Credit Agreement as more fully set forth below; and

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

PART 1

DEFINITIONS

SUBPART 1.1      Certain Definitions.  Unless otherwise defined herein or the context otherwise requires, the following terms used in this Amendment, including its preamble and recitals, have the following meanings:

“Amended Credit Agreement” means the Existing Credit Agreement as amended hereby.

“Amendment No. 3 Effective Date” is defined in Subpart 3.1.

SUBPART 1.2      Other Definitions.  Unless otherwise defined herein or the context otherwise requires, terms used in this Amendment, including its preamble and recitals, have the meanings provided in the Existing Credit Agreement.

PART 2

AMENDMENTS TO EXISTING CREDIT AGREEMENT

Effective on (and subject to the occurrence of) the Amendment No. 3 Effective Date, the Existing Credit Agreement is hereby amended in accordance with this Part 2.

SUBPART 2.1      Amendments to Section 1.01.  Section 1.01 of the Existing Credit Agreement is hereby amended in the following respects:

(a) The definition of “Availability Period” is hereby amended in its entirety to read as follows:

“Availability Period” means the period from and including January 22, 2004 to but excluding the earlier of the Commitment Termination Date and the date of termination of the Commitments.

(b) The definition of “Commitment Termination Date” is hereby amended in its entirety to read as follows:

“Commitment Termination Date” shall mean January 20, 2005.

SUBPART 2.2      Replacement of Schedules.  Schedule 2.01 of the Existing Credit Agreement is hereby deleted in its entirety and a new Schedule 2.01 attached hereto is substituted therefor.

PART 3

CONDITIONS TO EFFECTIVENESS

SUBPART 3.1      Amendment No. 3 Effective Date.  This Amendment shall be and become effective as of the date hereof (the “Amendment No. 3 Effective Date”) when all of the conditions set forth in this Part 3 shall have been satisfied.

SUBPART 3.2      Execution of Counterparts of Amendment.  The Administrative Agent shall have received counterparts of this Amendment, which collectively shall have been duly executed on behalf of each of the Borrower, the Guarantors, the Lenders and the Administrative Agent.

SUBPART 3.3      Fees and Expenses.  The Borrower shall have paid all fees and expenses incurred in connection with the negotiation, preparation, execution and delivery of this Amendment and the other transactions contemplated herein including, without limitation, the reasonable legal fees and expenses of Xxxxx & Xxx Xxxxx PLLC, counsel to the Administrative Agent.

SUBPART  3.4     Other Items.  The Administrative Agent shall have received such other documents, agreements or information as may be reasonably requested by the Administrative Agent.

PART 4

MISCELLANEOUS

SUBPART 4.1      Representations and Warranties.  The Borrower hereby represents and warrants to the Administrative Agent and the Lenders that, after giving effect to this Amendment, (a) no Default or Event of Default exists under the Amended Credit Agreement and (b) the representations and warranties set forth in Section 3 of the Existing Credit Agreement are, subject to the limitations set forth therein, true and correct in all material respects as of the date hereof (except for those which expressly relate to an earlier date).

SUBPART 4.2      Reaffirmation of Obligations.  The Borrower hereby ratifies the Amended Credit Agreement and acknowledges and reaffirms (a) that it is bound by all terms of the Amended Credit Agreement applicable to it and (b) that it is responsible for the observance and full performance of its respective obligations under the Amended Credit Agreement.

SUBPART 4.3 Cross-References.  References in this Amendment to any Part or Subpart are, unless otherwise specified, to such Part or Subpart of this Amendment.

SUBPART 4.4      Instrument Pursuant to Existing Credit Agreement.  This Amendment is executed pursuant to the Existing Credit Agreement and shall (unless otherwise expressly indicated therein) be construed, administered and applied in accordance with the terms and provisions of the Existing Credit Agreement.

SUBPART 4.5      References in Other Credit Documents.  At such time as this Amendment shall become effective pursuant to the terms of Subpart 3.1, all references to the “Credit Agreement” in the Credit Documents shall be deemed to refer to the Existing Credit Agreement as amended by this Amendment.

SUBPART 4.6      Counterparts/Telecopy.  This Amendment may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement.  Delivery of executed counterparts of the Amendment by telecopy shall be effective as an original and shall constitute a representation that an original shall be delivered.

SUBPART 4.7      Governing Law.  THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICTS OF LAW RULES).

SUBPART 4.8      Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

SUBPART 4.9      General.  Except as amended hereby, the Existing Credit Agreement and all other credit documents shall continue in full force and effect.

[Remainder of Page Intentionally Left Blank]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the 364- Day Credit Agreement as of the date first above written.

Schedule 2.01

LENDER ADDRESSES AND COMMITMENTS

364-DAY REVOLVING CREDIT FACILITY

Lender				Revolving Loan Commitment			Revolving Loan Percentage
Bank of America, N.A.				$	50,000,000		10.000000000	%
000 X. Xxxxx Xxxxxx
NC1-001-15-04
Independence Center, 15th floor
Xxxxxxxxx, XX 00000
Attn:  Xxxxxxxxx Xxxxxx
Phone:		(000) 000-0000
Fax:		(000) 000-0000
Deutsche Bank AG New York Branch				$	44,000,000		8.800000000	%
00 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX  00000
Attn:  Xxxxxxx Xxxxxxx
Phone:	(000) 000-0000
Fax:	(000) 000-0000
Deutsche Bank AG New York Branch
00 Xxxxxx Xxxxxx
Xxxxxx Xxxx, XX 00000
Attn:  Xxx Xxxxx Xxxxxx
Phone:		(000) 000-0000
Fax:		(000) 000-0000
SunTrust Bank				$	20,000,000		4.000000000	%
000 0xx Xxxxxx Xxxxx
0xx Xxxxx
Xxxxxxxxx, XX  00000
Attn:  Leigh Xxxx Xxxxxxx
Phone:		(000) 000-0000
Fax:		(000) 000-0000
SunTrust Bank
000 0xx Xxxxxx Xxxxx
0xx Xxxxx
Xxxxxxxxx, XX  00000
Attn:  Xxxxxx Xxxxxxx
Phone:		(000) 000-0000
Fax:		(000) 000-0000
Bank One N.A.				$	36,000,000		7.200000000	%
000 X Xxxxxxxxx Xxx., 0xx Xxxxx
Xxxxxxxxx, XX  00000
Attn:  Xxxxxxx Xxxxxxxx
Phone:		(000) 000-0000
Fax:		(000) 000-0000
Bank One N.A.
1 Bank Xxx Xxxxx
Xxxxx 0X 0-0000
Xxxxxxx, XX  00000-0000
Attn:  Xxxx Xxxxxxx
Phone:		(000) 000-0000
Fax:		(000) 000-0000

U.S. Bank National Association				$	36,000,000		7.200000000	%
000 Xxxxxxxxx Xxxx
Xxxxxxxxxxx, XX  00000
Attn:  Xxxxx Xxxxxxx
Phone:	(000) 000-0000
Fax:	(000) 000-0000
U.S. Bank National Association
000 Xxxxxxxxx Xxxx
Xxxxxxxxxxx, XX  00000
Attn:  Xxxxx Xxxxxxxx
Phone:	(000) 000-0000
Fax:	(000) 000-0000
KeyBank National Association				$	30,000,000		6.000000000	%
000 000xx Xxx.  XX
Xxxxxxxx, XX  00000
Attn:  Xxxxxxxxxxx Xxxxxxxx
Phone:	(000) 000-0000
Fax:	(000) 000-0000
KeyBank National Association
000 Xxxxxx Xxxxxx
XX-00-00-0000
Xxxxxxxxx, XX  00000
Attn:  Xxxxx Xxxxxxxx
Phone:	(000) 000-0000
Fax:	(000) 000-0000
Mizuho Corporate  Bank, Ltd.				$	49,000,000		9.800000000	%
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX  00000
Attn:  Xxxx Xxxxxxx
Phone:		(000) 000-0000
Fax:		(000) 000-0000
Mizuho Corporate Bank, Ltd.
000 Xxxx Xxxxxx Xx.
Xxxxx 0000
Xxxxxxx, XX  00000
Attn: Xxxxxxx X. Xxxxxxx
Phone:		(000) 000-0000
Fax:		(000) 000-0000
Citicorp USA, Inc. 000 Xxxxx Xxxxxx Xxxxx Xxxxx Xxxxx, Xxxxx 00 Xxxxxxx, XX  00000 Attn:  Xxxxxx Xxxx				$	20,000,000		4.000000000	%
Phone:		(000) 000-0000
Fax:		(000) 000-0000
Citicorp USA, Inc. 000 Xxxxx Xxxxxx Xxxxx Xxxxx Xxxxx, Xxxxx 00 Xxxxxxx, XX  00000 Attn:  Xxxxxx Xxxx
Phone:		(000) 000-0000
Fax:		(000) 000-0000

The Bank of Tokyo-Mitsubishi, Ltd., Chicago Branch 000 Xxxx Xxxxxx Xxxxxx Xxxxx 0000 Xxxxxxx, XX  00000 Attn:  Xxxxxx Xxxxxxx			$	36,000,000		7.200000000	%
Phone:	(000) 000-0000
Fax:	(000) 000-0000
The Bank of Tokyo-Mitsubishi, Ltd., Chicago Branch 000 Xxxxxxx Xxxxxxx Xxxxx 000 Xxxxxxxxxx, XX  00000 Attn:  Xxxxxxx XxXxx
Phone:	(000) 000-0000
Fax:	(000) 000-0000
Xxxxx Fargo Bank, National Association 000 Xxxxx Xxxxxx Xxx Xxxxxxxxx, XX  00000 Attn:  Xxxxxx Xxxxxxx			$	34,000,000		6.800000000	%
Phone:	(000)  000-0000
Fax:	(000) 000-0000
Xxxxx Fargo Bank , National Association Sixth and Marquette MAC: X0000-000 Xxxxxxxxxxx, XX  00000 Attn: Xxxxxxx Xxxxxxx
Phone:	(000) 000-0000
Fax:	(000) 000-0000
Royal Bank of Canada New York  Branch One Liberty Plaza 3rd Floor 000 Xxxxxxxx Xxx Xxxx, XX  00000-0000 Attn:  Karim Amr			$	34,000,000		6.800000000	%
Phone:	(000) 000-0000
Fax:	(000) 000-0000
With a copy to: Attn:  Xxxxxx XxxXxxxxx
Phone:	(000) 000-0000
Fax:	(000) 000-0000
Fleet National  Bank 000 Xxxxxxx Xxxxxx 00xx Xxxxx Xxxxxx, XX  00000 Attn:  Xxxxxxxxxxx Xxxxxx			$	39,000,000		7.800000000	%
Phone:	(000) 000-0000
Fax:	(000) 000-0000
Fleet National Bank 000 Xxxxxxx Xxxxxx 00xx Xxxxx Xxxxxx, XX  00000 Attn:  Xxxx Xxxxxxxx
Phone:	(000) 000-0000
Faax:	(000) 000-0000

BNP Paribas 000 X. XxXxxxx Xxxxxx Xxxxx 000 Xxxxxxx, XX  00000 Attn: Xxxxxxxxx Xxx			$	36,000,000		7.200000000	%
Phone:	(000) 000-0000
Fax:	(000) 000-0000
BNP Paribas 000 X. XxXxxxx Xxxxxx Xxxxx 000 Xxxxxxx, XX  00000 Attn: Jo Xxxxx Xxxxxx
Phone:	(000) 000-0000
Fax:	(000) 000-0000
The Northern Trust Company 00 Xxxxx XxXxxxx Xxxxxxx, XX  00000 Attn: Xxx Xxxxx			$	16,000,000		3.200000000	%
Phone:	(000) 000-0000
Fax:	(000) 000-0000
ABN AMRO Bank N.V. 00 X. 00xx Xxxxxx Xxx Xxxx, XX  00000 Attn: Xxxxxxx Xxxxx			$	20,000,000		4.000000000	%
Phone:	(000) 000-0000
Fax:	(000) 000-0000
ABN AMRO Bank N.V. 000 X. XxXxxxx Xxxxxx Xxxxxxx, XX  00000 Attn: Xxxxx Xxxxxx
Phone:	(000) 000-0000
Fax:	(000) 000-0000
Total			$	500,000,000		100	%