Document:

Form of Consultant Agreement

 Exhibit 10.1 
 CONSULTANT AGREEMENT 
 This Agreement is made and entered into as of June 16, 2009 (“Effective
Date”) by and between Northstar Neuroscience, Inc., a Washington corporation, having its principal place of business at 2401 Fourth Avenue, Suite 300, Seattle, Washington 98121 (“Northstar”) and John S. Bowers Jr.
(“Contractor”). 
 1. Duties. During the term of this Agreement, Contractor shall serve Northstar and render such services as may be
requested by Northstar and its officers and Board of Directors from time to time, including any specific duties described in the attached “Schedule of Duties.” 
 2. Term. This Agreement shall commence on the above date and continue until December 31, 2009, unless earlier terminated by either party at any time. 
 3. Compensation. Northstar shall pay Contractor as fees for his services the compensation described in the attached “Schedule of Compensation.”
Northstar will reimburse Contractor only for expenses that Northstar approves in advance in writing. 
 4. Intellectual Property Rights.

 4.1 Innovations; Northstar Innovations. “Innovations” includes processes, machines, compositions of matter, improvements,
inventions (whether or not protectable under patent laws), works of authorship, information fixed in any tangible medium of expression (whether or not protectable under copyright laws), moral rights, mask works, trademarks, trade names, trade dress,
trade secrets, know-how, ideas (whether or not protectable under trade secret laws), and all other subject matter protectable under patent, copyright, moral right, mask work, trademark, trade secret or other laws, and includes without limitation all
new or useful art, combinations, discoveries, formulae, manufacturing techniques, technical developments, discoveries, artwork, software, and designs. “Northstar Innovations” are Innovations that Contractor, solely or jointly with
others, conceives, reduces to practice, creates, derives, develops or makes within the scope of Contractor’s work for Northstar under this Agreement. 
 4.2 Disclosure and Ownership of Northstar Innovations. Contractor agrees to make and maintain adequate and current records of all Northstar Innovations, which records shall be and remain the property of Northstar. Contractor agrees
to promptly disclose to Northstar every Northstar Innovation. Contractor hereby assigns to Northstar or Northstar’s designee Contractor’s entire worldwide right, title and interest in and to all Northstar Innovations and all associated
records and intellectual property rights. 
 4.3 Assistance. Contractor agrees to assist Northstar in perfecting and enforcing Northstar’s
worldwide rights, title and interest, in and to all patents, copyrights, moral rights, mask works, trade secrets, and other property rights in each of the Northstar Innovations. Contractor agrees to execute any lawful documents deemed reasonably
necessary by Northstar to carry out the purpose of this Agreement. If called upon to render assistance under this paragraph, Contractor will be entitled to a fair and reasonable fee in addition to reimbursement of authorized expenses incurred at the
prior written request of Northstar. In the event that Northstar is unable for any reason to secure Contractor’s signature to any document Contractor is required to execute under this Paragraph 4.3 (Assistance), Contractor hereby
irrevocably designates and appoints Northstar and Northstar’s duly authorized officers and agents as Contractor’s agents and attorneys-in-fact to act for and in Contractor’s behalf and instead of Contractor, to execute such document
with the same legal force and effect as if executed by Contractor. 
 4.4 Out-of-Scope Innovations. If Contractor incorporates any Innovations that
were conceived, reduced to practice, created, derived, developed or made by Contractor or any third party either outside of the scope of Contractor’s work for Northstar under this Agreement or prior to the Effective Date (collectively, the
“Out-of-Scope Innovations”) into any of the Northstar Innovations, Contractor hereby grants to Northstar a royalty-free, transferable, irrevocable, worldwide, fully paid-up license (with rights to sublicense) to use any Out-of-Scope
Innovations. Contractor agrees that Contractor will not incorporate, or permit to be incorporated, any Out-of-Scope Innovations into any of the Northstar Innovations without Northstar’s prior written consent. 
 5. Confidential Information. 
 5.1 Definition of
Confidential Information. “Confidential Information” as used in this Agreement shall mean any and all technical and non-technical information including patent, copyright, trade secret, and proprietary information, techniques,
sketches, drawings, models, inventions, know-how, processes, apparatus, equipment, algorithms, software programs, software source documents, and formulae related to the current, future and proposed 

 
products and services of Northstar, Northstar’s suppliers and customers, and includes, without limitation, Northstar Innovations, Northstar Property,
and Northstar’s information concerning research, experimental work, development, design details and specifications, engineering, financial information, procurement requirements, purchasing manufacturing, customer lists, business forecasts,
sales and merchandising and marketing plans and information. 
 5.2 Nondisclosure and Nonuse Obligations. Except as permitted in this paragraph,
Contractor shall neither use nor disclose the Confidential Information. Contractor may use the Confidential Information solely to perform its duties under this Agreement for the benefit of Northstar. Contractor agrees that Contractor shall treat all
Confidential Information of Northstar with the same degree of care as Contractor accords to Contractor’s own Confidential Information, but in no case less than reasonable care. If Contractor is not an individual, Contractor agrees that
Contractor shall disclose Confidential Information only to those of Contractor’s employees who need to know such information, and Contractor certifies that such employees have previously agreed, either as a condition of employment or in order
to obtain the Confidential Information, to be bound by terms and conditions substantially similar to those terms and conditions applicable to Contractor under this Agreement. Contractor agrees not to communicate any information to Northstar in
violation of the proprietary rights of any third party. Contractor will immediately give notice to Northstar of any unauthorized use or disclosure of the Confidential Information. Contractor agrees to assist Northstar in remedying any such
unauthorized use or disclosure of the Confidential Information. 
 5.3 Exclusions from Nondisclosure and Nonuse Obligations. Contractor’s
obligations under Paragraph 5.2 (Nondisclosure and Nonuse Obligations) with respect to any portion of the Confidential Information shall not apply to any such portion which Contractor can demonstrate, (a) was in the public domain at or
subsequent to the time such portion was communicated to Contractor by Northstar through no fault of Contractor; (b) was rightfully in Contractor’s possession free of any obligation of confidence at or subsequent to the time such portion
was communicated to Contractor by Northstar; or (c) was developed by employees of Contractor independently of and without reference to any information communicated to Contractor by Northstar. A disclosure of Confidential Information by
Contractor, either (a) in response to a valid order by a court or other governmental body, (b) otherwise required by law, or (c) necessary to establish the rights of either party under this Agreement, shall not be considered to be a
breach of this Agreement or a waiver of confidentiality for other purposes; provided, however, that Contractor shall provide prompt prior written notice thereof to Northstar to enable Northstar to seek a protective order or otherwise prevent such
disclosure. 
 6. Ownership and Return of Northstar Property. All materials (including, without limitation, documents, drawings, models,
apparatus, sketches, designs, lists, and all other tangible media of expression) furnished to Contractor by Northstar, whether delivered to Contractor by Northstar or made by Contractor in the performance of services under this Agreement
(collectively, the “Northstar Property”) are the sole and exclusive property of Northstar or Northstar’s suppliers or customers, and Contractor hereby does and will assign to Northstar all rights, title and interest Contractor
may have or acquire in the Northstar Property. Contractor agrees to keep all Northstar Property at Contractor’s premises unless otherwise permitted in writing by Northstar. At Northstar’s request and no later than five (5) days after
such request, Contractor shall destroy or deliver to Northstar, at Northstar’s option, (a) all Northstar Property, (b) all tangible media of expression in Contractor’s possession or control which incorporate or in which are fixed
any Confidential Information, and (c) written certification of Contractor’s compliance with Contractor’s obligations under this sentence. 
 7. Observance of Northstar Rules. At all times while on Northstar’s premises, Contractor will observe Northstar’s rules and regulations with respect to conduct, health and safety and protection of persons and property.

 8. No Conflict of Interest. During the term of this Agreement, Contractor will not accept work, enter into a contract, or accept an obligation,
inconsistent or incompatible with Contractor’s obligations under this Agreement. Contractor warrants that, there is no other contract or duty on Contractor’s part that conflicts with or is inconsistent with this Agreement. Contractor
agrees to indemnify Northstar from any and all loss or liability incurred by reason of the alleged breach by Contractor of any agreement with any third party. 
 9. Noninterference with Business. During the term of this Agreement, and for a period of two (2) years following this Agreement’s termination or expiration, Contractor agrees that it shall not interfere with
Northstar’s business in any manner, including, without limitation, the solicitation of any employee or independent contractor to terminate or breach an employment, contractual or other relationship with Northstar. 

 10. Relationship Between Parties. Contractor’s relationship with Northstar is that of an independent
contractor, and nothing in this Agreement is intended to, or should be construed to, create a partnership, agency, joint venture or employment relationship. Contractor will not be entitled to any of the benefits that Northstar may make available to
its employees, including, but not limited to, group health or life insurance, profit-sharing or retirement benefits. Contractor is not authorized to make any representation, contract or commitment on behalf of Northstar unless specifically requested
or authorized in writing to do so by a Northstar manager. Contractor is solely responsible for, and will file, on a timely basis, all tax returns and payments required to be filed with, or made to, any federal, state or local tax authority with
respect to the performance of services and receipt of fees under this Agreement. Contractor is solely responsible for, and must maintain adequate records of, expenses incurred in the course of performing services under this Agreement. No part of
Contractor’s compensation will be subject to withholding by Northstar for the payment of any social security, federal, state or any other employee payroll taxes. Northstar will regularly report amounts paid to Contractor by filing Form
1099-MISC with the Internal Revenue Service as required by law. 
 11. Indemnification. Northstar agrees to defend, indemnify and hold harmless
Contractor from and against any and all liability, loss (including reasonable attorneys’ fees), or damage Contractor may suffer as the result of claims, demands, costs, or judgments against him (collectively
“Damages”) to the extent arising out of the activities carried out pursuant to and consistent with the terms of the services to be performed under this Agreement, except to the extent any Damages arise from, or
are alleged to arise from: (i) negligence, misconduct, bad faith, malpractice, or breach of this Agreement on the part of Contractor or any of his agents, employers, employees or consultants; or (ii) a breach of any applicable federal,
state or local law attributable to Contractor. In the event any claim or demand is made against Northstar by a third party, Northstar may defend itself with legal counsel of its own choosing, and Contractor shall use his best efforts to assist
Northstar in the defense of any such claim or demand. Northstar shall have the sole and exclusive authority to compromise or settle any claim or demand. 
 12. Survival. Section 4 (Intellectual Property Rights), Section 5 (Confidential Information), Section 6 (Ownership and Return of Northstar Property), Section 9 (Noninterference with Business),
Section 11 (Indemnification), Section 12 (Survival), Section 14 (Assignment), Section 15 (Severability), Section 17 (Governing Law; Jurisdiction), and Section 18 (Entire Agreement) shall survive the termination or
expiration of this Agreement. 
 13. Notices. Any notice required or permitted by this Agreement shall be in writing and shall be delivered as
follows, with notice deemed given as indicated: (a) by personal delivery, when delivered personally; (b) by overnight courier, upon written verification of receipt; (c) by telecopy or facsimile transmission, upon acknowledgment of
receipt of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt. Notice shall be sent to the addresses set forth above or to such other address as either party may specify in
writing. 
 14. Assignment. Contractor may not subcontract or otherwise delegate Contractor’s obligations under this Agreement without
Northstar’s prior written consent. Subject to the foregoing, this Agreement will be for the benefit of Northstar’s successors and assigns, and will be binding on Contractor’s assignees. 
 15. Severability. If any provision of this Agreement is held by a court of law to be illegal, invalid or unenforceable, (i) that provision shall be
deemed amended to achieve as nearly as possible the same economic effect as the original provision, and (ii) the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby.

 16. Waiver, Amendment. No term or provision hereof will be considered waived by Northstar, and no breach excused by Northstar, unless such waiver
or consent is in writing signed by Northstar. The waiver by Northstar of, or consent by Northstar to, a breach of any provision of this Agreement by Contractor, shall not operate or be construed as a waiver of, consent to, or excuse of any other or
subsequent breach by Contractor. This Agreement may be amended or modified only by mutual agreement of authorized representatives of the parties in writing. 
 17. Governing Law; Jurisdiction. This Agreement will be governed in all respects by the laws of the State of Washington. The parties irrevocably consent to the exclusive personal jurisdiction of the of the federal and state courts
located in Washington, as applicable, for any matter arising out of or relating to this Agreement, except that in actions seeking to enforce any order or any judgment of such federal or state courts located in Washington, such personal jurisdiction
shall be nonexclusive. 

 18. Entire Agreement. This Agreement, and the attachments, and the Separation Agreement (as defined below)
constitute the entire agreement between the parties relating to this subject matter, and supersede all prior contemporaneous oral or written agreements concerning such subject matter. The terms of this Agreement will govern all Schedules of Duties
and Schedules of Compensation. Contractor acknowledges his continuing obligations under his other agreements with Northstar, as described in Sections 5.3 and 16 of that certain Confidential Separation Agreement and General Release of Claims between
Contractor and Northstar dated effective as of June 15, 2009 (the “Separation Agreement”). 
 IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date first written above. 
  

									
	NORTHSTAR	 		 	“Contractor”
			
	Northstar Neuroscience, Inc.	 		 	John S. Bowers Jr.
					
	By:	 	 	 		 	By:	 	 
				
	Name:	 	Alan Levy, PhD	 		 	SSN or Tax I.D. Number:
                                         
               
					
	Title:	 	Chairman, Board of Directors	 		 		 	
		 	Northstar Neuroscience, Inc.	 		 		 	

  

 SCHEDULE OF DUTIES 
 Contractor’s duties shall include: 
 1. supporting Northstar with the engagement of a trustee, custodian or other party
to oversee the distribution of Northstar’s cash to its shareholders; 
 2. supporting Northstar in conducting the initial distribution of liquidation
proceeds to the shareholders of Northstar; and 
 3. supporting Northstar in completing the transfer of assets to St. Jude Medical (subsections (1),
(2) and (3) are collectively referred to as the “Milestones”). 
 In addition, Contractor shall provide general assistance to
Northstar in implementation of the Plan of Complete Liquidation and Dissolution of Northstar and related project support, and such other services as are reasonably requested by Northstar and are within the field of knowledge and expertise of
Contractor. 

 SCHEDULE OF COMPENSATION 
 Contractor will be paid a rate of $250 per hour for consulting services requested by Northstar. Upon satisfactory completion of the Milestones, as determined by the Board of Directors of Northstar in its sole
discretion, Contractor will also be paid a one-time lump sum payment of $50,000 for consulting services rendered through such date.Confidential Separation Agreement and General Release of All Claims

 EXHIBIT 10.2 
 CONFIDENTIAL SEPARATION AGREEMENT 
 AND GENERAL RELEASE OF ALL CLAIMS 
 This Confidential Separation Agreement and General Release of All Claims (the “Agreement”) is made by and between Northstar
Neuroscience, Inc. (“Northstar”) and John S. Bowers, Jr. (“Employee”) with respect to the following facts: 
 A. Employee is currently employed by Northstar pursuant to an Executive Employment Agreement dated May 10, 2006, as amended by the Amended and Restated Executive Employment Agreement dated July 2, 2007 and further amended by the
Second Amendment to Executive Employment Agreement dated July 31, 2008 (as amended, “Employment Agreement”). Pursuant to Employee’s Employment Agreement, Employee is entitled to severance benefits in the event his
employment is terminated under certain circumstances. 
 B. Northstar is ceasing operations and liquidating its assets. As a result,
Employee’s employment will cease effective June 15, 2009 or such earlier date as Northstar and Employee may mutually agree (the “Separation Date”). Northstar wishes to reach an amicable separation with Employee and assist
Employee’s transition to other employment. 
 C. Pursuant to the Employment Agreement, the parties are entering into this Agreement. The
parties desire to settle all claims and issues that have, or could have been raised, by Employee in relation to Employee’s employment with Northstar and arising out of or in any way related to the acts, transactions or occurrences between
Employee and Northstar to date, including, but not limited to, Employee’s employment with Northstar or the termination of that employment, on the terms set forth below. 
 THEREFORE, in consideration of the promises and mutual agreements hereinafter set forth, it is agreed by and between the undersigned as follows:

 ARTICLE I Agreement. 
 1.1 Termination of Employment. Employee’s employment with Northstar is terminated by Northstar, pursuant to Section 7.4 of the Employment Agreement, effective on the Separation Date. 
 1.2 Severance Package. Northstar agrees to provide Employee with the severance benefits described in Section 7.4 of the
Employment Agreement and in this paragraph 1.2 (the “Severance Package”). Northstar agrees to pay the severance payment provided for in the Employment Agreement in a lump sum on the first regularly scheduled Northstar pay day
following the Effective Date of this Agreement as described in paragraph 9.2 below. As a point of clarification regarding the COBRA benefits described in the Severance Package, after May 30, 2009, Northstar’s group health plan was
terminated and COBRA coverage was no longer available. Accordingly, Northstar will provide Employee with a lump sum payment in the amount of $22,278 in an effort to help defray the cost that Employee will incur in securing Employee’s own health
insurance coverage. The lump sum payment will be made on June 15, 2009, 

 
and will be subject to all applicable taxes. Employee acknowledges that this lump sum payment made pursuant to this Paragraph is in full satisfaction of
any pre-existing Northstar obligation to provide Employee with continued health insurance coverage after termination of employment. Employee acknowledges and agrees that this Severance Package constitutes adequate legal consideration for the
promises and representations made by Employee in this Agreement. 
 1.3 No Bonus for 2009 Service. Employee
acknowledges that he will not be entitled to an employee bonus for any services rendered in 2009. 
 ARTICLE II General Release.

 2.1 Employee unconditionally, irrevocably and absolutely releases and discharges Northstar, and any parent and subsidiary
corporations, divisions and affiliated corporations, partnerships or other affiliated entities of Northstar, past and present, as well as Northstar’s employees, officers, directors, agents, shareholders, successors and assigns (collectively,
“Released Parties”), from all claims related in any way to the transactions or occurrences between them, directly or indirectly, to date, to the fullest extent permitted by law, including, but not limited to, Employee’s
employment with Northstar, the termination of Employee’s employment, Employee’s ownership of Northstar stock, and all other losses, liabilities, claims, charges, demands and causes of action, known or unknown, suspected or unsuspected,
arising directly or indirectly out of or in any way connected with Employee’s employment with Northstar or Employee’s status as a Northstar stockholder. This release is intended to have the broadest possible application and includes, but
is not limited to, any securities-related claims and any claims for breach of contract, wrongful termination, defamation, employment discrimination, harassment, retaliation, and any other tort, contract, common law, constitutional or other statutory
claims, arising under state, federal or local law, including, but not limited to alleged violations of the federal Fair Labor Standards Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age Discrimination in
Employment Act of 1967, as amended, and all claims for attorneys’ fees, costs and expenses. However, this general release is not intended to bar any claims that, by statute, may not be waived, such as any challenge to the validity of
Employee’s release of claims under the Age Discrimination in Employment Act of 1967, as amended, as set forth in this Agreement. 
 2.2 Employee acknowledges that Employee may discover facts or law different from, or in addition to, the facts or law that Employee knows or believes to be true with respect to the claims released in this Agreement
and agrees, nonetheless, that this Agreement and the release contained in it shall be and remain effective in all respects notwithstanding such different or additional facts or the discovery of them. 
 2.3 Employee declares and represents that Employee intends this Agreement to be complete and not subject to any claim of mistake, that the
release herein expresses a full and complete release of all claims known and unknown, suspected and unsuspected and that, regardless of the adequacy or inadequacy of the consideration, Employee intends the release herein to be final and complete.
Employee executes this release with the full knowledge that this release covers all possible claims against the Released Parties, to the fullest extent permitted by law. 

 2.4 Employee expressly waives Employee’s right to recovery of any type, including
damages or reinstatement, in any administrative or court action, whether state or federal, and whether brought by Employee or on Employee’s behalf, related in any way to the matters released herein. 
 ARTICLE III Representation Concerning Filing of Legal Actions. Employee represents that, as of the date of this Agreement, Employee has not filed
any lawsuits, charges, complaints, petitions, claims or other accusatory pleadings against Northstar or any of the other Released Parties in any court or with any governmental agency. 
 ARTICLE IV Mutual Nondisparagement. Employee agrees that Employee will not make any voluntary statements, written or oral, or cause or encourage
others to make any such statements that defame, disparage or in any way criticize the personal and/or business reputations, practices or conduct of Northstar or any of the other Released Parties. Accordingly, Northstar agrees that its officers and
directors will not make any voluntary statements, written or oral, or cause or encourage others to make any such statements that defame, disparage or in any way criticize the personal and/or business reputations, practices or conduct of Employee.

 ARTICLE V Confidentiality and Return of Northstar Property. 
 5.1 Confidential Separation Information. Employee agrees that the terms and conditions of this Agreement, as well as the
discussions that led to the terms and conditions of this Agreement (collectively referred to as the “Confidential Separation Information”) are intended to remain confidential between Employee and Northstar. Employee further agrees
that Employee will not disclose the Confidential Separation Information to any other persons, except that Employee may disclose such information to Employee’s immediate family members and to Employee’s attorney(s) and accountant(s), if
any, to the extent needed for legal advice or income tax reporting purposes. When releasing this information to any such person, Employee shall advise the person receiving the information of its confidential nature. Neither Employee nor anyone to
whom the Confidential Separation Information has been disclosed will respond to, or in any way participate in or contribute to, any public discussion, notice or other publicity concerning the Confidential Separation Information. Without limiting the
generality of the foregoing, Employee specifically agrees that neither Employee, Employee’s immediate family, Employee’s attorney nor Employee’s accountant, if any, shall disclose the Confidential Separation Information to any
current, former or prospective employee of Northstar. Nothing in this paragraph will preclude Employee from disclosing information required in response to a subpoena duly issued by a court of law or a government agency having jurisdiction or power
to compel such disclosure, or from giving full, truthful and cooperative answers in response to a duly issued subpoena. 
 5.2
Confidential or Proprietary Information. Employee also agrees that Employee will not use, remove from Northstar’s premises, make unauthorized copies of or disclose any confidential or proprietary information of Northstar or any
affiliated or related entities, including but not limited to, their trade secrets, copyrighted information, customer lists, any information encompassed in any research and development, reports, work in progress, drawings, software, computer files or
models, designs, plans, proposals, marketing and sales programs, financial projections, and all concepts or ideas, materials or information related to the business or sales of Northstar and any affiliated or related entities that has not previously
been released to the public by an authorized representative of those companies. 

 5.3 Continuing Obligations. Employee understands and agrees that certain terms and
conditions of the Confidentiality, Inventions and Non-Competition Agreement (“Confidentiality Agreement”) that Employee signed while employed by Northstar survive the termination of Employee’s employment. Employee agrees to
abide by such surviving provisions of the Employment Agreement and Confidentiality Agreement, including but not limited to nondisclosure of Northstar’s confidential and proprietary information. 
 5.4 Return of Northstar Property. By signing this Agreement, Employee represents and warrants that Employee will have returned to
Northstar on or before the Separation Date, all Northstar property, including all confidential and proprietary information, as described in or required by paragraphs 5.2 and 5.3 above, and all materials and documents containing trade secrets,
including lab notebooks, and copyrighted materials, including all copies and excerpts of the same. 
 ARTICLE VI No Other Severance
Benefits. Employee expressly acknowledges and agrees that the Severance Package provided pursuant to this Agreement is in lieu of any other severance payments and/or benefits to which Employee may be eligible under any other Northstar severance
policy, program, plan, practice or agreement. Specifically, Employee acknowledges and agrees that Employee is not entitled to severance under the Northstar Severance and Retention Program for Staff Employees dated January 2009 or Severance Program
for Director Level Employees dated January 2009. By signing this Agreement, Employee expressly waives any right Employee may have to receive severance under any other Northstar severance policy, program, plan, practice or agreement, including but
not limited to the Severance and Retention Program for Staff Employees dated January 2009 or Severance Program for Director Level Employees dated January 2009. 
 ARTICLE VII Enforcement. If Employee breaches any of the terms in paragraphs 4 or 5 above or their subparts, Northstar will immediately cease providing the severance payments and benefits described in paragraph
1 above, to the extent those payments and benefits have not yet been provided. 
 ARTICLE VIII No Admissions. By entering into this
Agreement, the Released Parties make no admission that they have engaged, or are now engaging, in any unlawful conduct. The parties understand and acknowledge that this Agreement is not an admission of liability and shall not be used or construed as
such in any legal or administrative proceeding. 
 ARTICLE IX Older Workers’ Benefit Protection Act. This Agreement is intended
to satisfy the requirements of the Older Workers’ Benefit Protection Act, 29 U.S.C. sec. 626(f). Employee is advised to consult with an attorney before executing this Agreement. 
 9.1 Acknowledgments/Time to Consider. Employee acknowledges and agrees that (a) Employee has read and understands the terms of
this Agreement; (b) Employee has been advised in writing to consult with an attorney before executing this Agreement; (c) Employee has obtained and considered such legal counsel as Employee deems necessary; (d) Employee has 

 
been given at least forty-five (45) days to consider whether or not to enter into this Agreement (Employee may elect not to use the full consideration
period at Employee’s option, but Employee should not sign this Agreement prior to the Separation Date); and (e) by signing this Agreement, Employee acknowledges that Employee does so freely, knowingly, and voluntarily. If Employee decides
to enter into this Agreement, Employee must sign this Agreement and submit it to Brian Dow, Vice President of Finance and Chief Financial Officer, no later than 45 days from April 1, 2009, or Employee’s Separation Date, whichever is
later. 
 9.2 Revocation/Effective Date. This Agreement shall not become effective or enforceable until the eighth day
after Employee signs this Agreement. In other words, Employee may revoke Employee’s acceptance of this Agreement within seven (7) days after the date Employee signs it. Employee’s revocation must be in writing and received by Brian
Dow, Vice President of Finance and Chief Financial Officer, by 5:00 p.m. Pacific Time on the seventh day in order to be effective. If Employee does not revoke acceptance within the seven (7) day period, Employee’s acceptance of this
Agreement shall become binding and enforceable on the eighth day (“Effective Date”). The Severance Package will become due and payable in accordance with paragraph 1 above and its subparts after the Effective Date, provided
Employee does not revoke. 
 9.3 Preserved Rights of Employee. This Agreement does not waive or release any rights or
claims that Employee may have under the Age Discrimination in Employment Act that arise after the execution of this Agreement. In addition, this Agreement does not prohibit Employee from challenging the validity of this Agreement’s waiver and
release of claims under the federal Age Discrimination in Employment Act of 1967, as amended. 
 9.4 Required
Disclosures. Employee further acknowledges that Employee has been advised of the following information: (i) all Northstar employees were considered for lay off in connection with the reduction-in-force announced January 5, 2009;
(ii) Northstar used the following criteria in selecting employees for lay off: all Northstar employees were selected for layoff due to the cessation of operations and liquidation of assets; (iii) all employees whose employment is being
terminated as a result of the reduction-in-force announced January 5, 2009 are eligible for severance pay; (iv) all selected employees age 40 or over will have at least forty-five (45) days within which to consider whether to
accept the Agreement; (v) all selected employees under age 40 will have at least 7 calendar days to consider whether to accept the Agreement; (vi) the job titles and ages of all employees in the same job classification or
organizational unit as Employee who are eligible or selected for this program are listed in part A to Exhibit 1 of this Agreement; and (vii) employees in the same job classification or organizational unit as Employee who are not
eligible or selected for this program are listed in part B to Exhibit 1 of this Agreement. 
 ARTICLE X Severability. In the
event any provision of this Agreement shall be found unenforceable by an arbitrator or a court of competent jurisdiction, the provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being
intended that Northstar shall receive the benefits contemplated herein to the fullest extent permitted by law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed
deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby. 

 ARTICLE XI Applicable Law. The validity, interpretation and performance of this Agreement shall be
construed and interpreted according to the laws of the United States of America and the State of Washington. 
 ARTICLE XII Binding on
Successors. The parties agree that this Agreement shall be binding on, and inure to the benefit of, Northstar and its successors and/or assigns. 
 ARTICLE XIII Full Defense. This Agreement may be pled as a full and complete defense to, and may be used as a basis for an injunction against, any action, suit or other proceeding that may be prosecuted,
instituted or attempted by Employee in breach hereof. 
 ARTICLE XIV Good Faith. The parties agree to do all things necessary and to
execute all further documents necessary and appropriate to carry out and effectuate the terms and purposes of this Agreement. 
 ARTICLE XV
Entire Agreement; Modification. This Agreement, including the surviving provisions of the Employment Agreement, Confidentiality Agreement signed by Employee and the 1999 Stock Option Plan and 2006 Performance Incentive Plan and associated
stock option agreements and grant documents herein incorporated by reference, is intended to be the entire agreement between the parties and supersedes and cancels any and all other and prior agreements, written or oral, between the parties
regarding this subject matter. It is agreed that there are no collateral agreements or representations, written or oral, regarding the terms and conditions of Employee’s separation of employment with Northstar and settlement of all claims
between the parties other than those set forth in this Agreement. This Agreement may be amended only by a written instrument executed by all parties hereto. 
 THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW. 
  

									
	Dated:                     	 		 	By:	 	 
		 		 		 		 	John S. Bowers, Jr.
				
	Dated:                     	 		 	By:	 	 
		 		 		 		 	Brian Dow
		 		 		 		 	Northstar Neuroscience, Inc.
		 		 		 		 	Vice President, Finance and Chief Financial Officer

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