Document:

Jacobs Engineering Group Inc. 1999 Stock Incentive Plan

 EXHIBIT 10.2 
 JACOBS ENGINEERING GROUP INC. 
 1999 STOCK INCENTIVE PLAN 
 (As Amended and Restated) 
  

	1.	Purpose. 

 The purpose of the Jacobs Engineering
Group Inc. 1999 Stock Incentive Plan (the “Plan”) is to advance the interests of Jacobs Engineering Group Inc. (the “Company”) and its Related Companies (as defined in Section 2) by encouraging and enabling the acquisition
of a financial interest in the Company by officers and other employees of the Company and its Related Companies. In addition, the Plan is intended to aid the Company and its Related Companies in attracting and retaining employees, to stimulate the
efforts of such employees and to strengthen their desire to remain in the employ of the Company and its Related Companies. 
  

	2.	Definitions

 Unless the context clearly indicates
otherwise, the following terms, when used in this Plan, shall have the meanings set forth in this Paragraph 2. 
 “Board of
Directors” means the Board of Directors of the Company. 
 “Change in Control” shall mean, with respect to the Company, a
change in control of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A under the Securities Exchange Act of 1934, as amended (“1934 Act”), provided that such a change in control
shall be deemed to have occurred at such time as (i) any “person” (as that term is used in Sections 13(d) and 14(d)(2) of the 1934 Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act),
directly or indirectly, of securities representing 25% or more of the combined voting power for election of directors of the then outstanding securities of the Company or any successor of the Company; (ii) during any period of two
(2) consecutive years or less, individuals who at the beginning of such period constituted the Board of Directors of the Company cease, for any reason, to constitute at least a majority of the Board of Directors of the Company, unless the
election or nomination for election of each new director was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of the period; (iii) the shareholders of the Company approve any
merger or consolidation as a result of which the Jacobs Common Stock (as defined below) shall be changed, converted or exchanged (other than by merger with a wholly owned subsidiary of the Company) or any liquidation of the Company or any sale or
other disposition of 50% or more of the assets or earning power of the Company; or (iv) the shareholders of the Company approve any merger or consolidation to which the Company is a party as a result of which the persons who were shareholders
of the Company immediately prior to the effective date of the merger or consolidation shall have beneficial ownership of less than 50% of the combined voting power for election of directors of the surviving corporation following the effective date
of such merger or consolidation; provided, however, that no Change in Control shall be deemed to have occurred if, prior to such time as a Change in Control would otherwise be deemed to have occurred, the Board of Directors of the Company determines
otherwise. 
 “Code” means the Internal Revenue Code of 1986, as amended. 

 “Committee” means the Human Resource and Compensation Committee of the Board of Directors of
the Company, or any committee appointed by the Board of Directors of the Company in accordance with the Company’s By-Laws from among its members for the purpose of administering the Plan. Members of the Committee shall be “Non Employee
Directors” within the meaning of Rule 16b-3 under the 1934 Act, and “Outside Directors” as defined in IRS guidance issued under Section 162(m) of the Code. 
 “Disabled” or “Disability” means the employee meets the definition of “disabled” under the terms of the long term
disability plan of the Company or Related Company by which the employee is employed in effect on the date in question, whether or not the employee is covered by such plan. 
 “Employee” means an employee of the Company or a Related Company. 
 “Fair Market Value” means the closing price of Jacobs Common Stock as reported in the composite transactions report of the National Securities
Exchange on which the Jacobs Common Stock is then listed (“Exchange”). If such day is a day that the Exchange is not open, then the Fair Market Value shall be determined by reference to the closing price of the Jacobs Common Stock for the
immediately preceding trading day. 
 “Incentive Award” means an ISO, an NQSO or Restricted Stock granted or awarded under this
Plan. 
 “ISO” means an incentive stock option within the meaning of Section 422 of the Code. 
 “Jacobs Common Stock” means the Common Stock, par value $1.00 per share, of the Company. 
 “Majority-Owned Related Company” means a Related Company in which the Company owns, directly or indirectly, 50% or more of the voting stock on
the date an Incentive Award is granted or awarded. 
 “NQSO” means a stock option that does not constitute an ISO. 
 “Options” means ISOs and NQSOs granted under this Plan. 
 “Optionee” means any person to whom an Option is granted under the Plan. 
 “Related
Company” or “Related Companies” means corporation(s) or other business organization(s) in which the Company holds a sufficient ownership interest so that Jacobs Common Stock issued to the employees of such entities constitutes
“service recipient stock,” as defined in IRS guidance under Code section 409A. In general, the Company holds a sufficient ownership interest if it owns, directly or indirectly, at least 50 percent of the total combined voting power of all
classes of stock entitled to vote or at least 50 percent of the total value of shares of all classes of stock. However, to the extent permitted by IRS guidance under Code section 409A, “20 percent” shall be used instead of “50
percent” in the previous sentence. 
 “Restricted Stock” means shares of Jacobs Common Stock awarded pursuant to
Section 13 of this Plan. 
 “Retire” means to enter Retirement. 

 “Retirement” means the termination of an Optionee’s employment with the Company or a
Related Company by reason of an Optionee having either (1) attained the age of 65, or (2) attained the age of 60 and completed a total of ten (10) or more consecutive years of employment with the Company, and/or a Related Company.

  

	3.	Incentive Awards. 

 The Company may grant or award
Incentive Awards to those persons meeting the eligibility requirements in Section 6. 
  

	4.	Administration. 

 (a) The Plan shall be administered
by the Committee. The Board of Directors shall fill vacancies on, and from time to time may remove or add members to, the Committee. The Committee shall act pursuant to a majority vote or unanimous written consent. 
 (b) The Committee shall determine the employees of the Company and its Related Companies (including officers) to whom, and the time or times at which,
Incentive Awards will be granted or awarded; the number of shares to be subject to each Incentive Award; the duration of each Incentive Award; the time or times within which Options may be exercised; the cancellation of the Incentive Award (with the
consent of the holder thereof); and the other terms and conditions of the grant or award of the Incentive Award, at grant or award or while outstanding, pursuant to the terms of the Plan. The provisions and conditions of the Incentive Awards need
not be the same with respect to each employee or with respect to each Incentive Award. 
 (c) The Committee may, subject to the provisions of
the Plan, establish such rules, regulations, policies and procedures as it deems necessary or advisable for the proper administration of the Plan, and may make determinations and may take such other action in connection with or in relation to the
Plan as it deems necessary or advisable. Except as provided in Paragraph 18, each determination or other action made or taken pursuant to the Plan, including interpretations of the Plan and the specific conditions and provisions of the Incentive
Awards granted or awarded hereunder by the Committee, shall be final and conclusive for all purposes and upon all persons including, but without limitation, the Company, its Related Companies, the Committee, the Board of Directors of the Company,
officers and the affected employees of the Company and/or its Related Companies, employees and the respective successors in interest of any of the foregoing. 
 (d) Notwithstanding the foregoing, with respect to any Incentive Award that is not intended to satisfy the conditions of Rule 16b-3 under the 1934 Act or Section 162(m)(4)(C) of the Code, the Committee may
appoint one or more separate committees (any such committee, a “Subcommittee”) composed of one or more directors of the Company, who unlike the members of the Committee, may be employee directors of the Company. The Committee may delegate
to any such Subcommittee(s) the authority to grant Incentive Awards, to determine all terms of such Incentive Awards and/or to administer the Plan, pursuant to the terms of the Plan. Subject to the limitations of the Plan and the limitations of the
Committee’s delegation, any such Subcommittee would have the full authority of the Committee pursuant to the terms of the Plan. Any such Subcommittee shall not, however, grant Incentive Awards on terms more favorable than Incentive Awards
granted by the Committee. Actions by any such Subcommittee within the scope of delegation shall be deemed for all purposes to have been taken by the Committee. Any such Subcommittee shall be required to report to the Committee on any actions that
the Subcommittee has taken. 

 (e) The Committee may designate the Secretary of the Company or any other Company employee to assist the
Committee in the administration of the Plan, and may grant authority to such persons to execute agreements evidencing Incentive Awards made under the Plan or other documents entered into under the Plan on behalf of the Committee or the Company.

  

	5.	Stock. 

 The Jacobs Common Stock to be issued,
transferred and/or sold under the Plan shall be made available from authorized and unissued Jacobs Common Stock or from the Company’s treasury shares. The total number of shares of Jacobs Common Stock that may be issued or transferred under the
Plan pursuant to Incentive Awards hereunder may not exceed 18,700,000 shares (subject to adjustment as described below). Such number of shares shall be subject to adjustment in accordance with this Section 5 and Section 12. Jacobs Common
Stock subject to any unexercised portion of an Option that expires or is canceled, surrendered or terminated for any reason may again be subject to Incentive Awards granted under the Plan. 
  

	6.	Eligibility. 

 Incentive Awards may be granted or
awarded to any individual who is an employee of the Company or a Related Company on the date of grant. In no event may Incentive Awards be granted or awarded to any Employee for more than one million shares in any one calendar year, subject to the
adjustment provisions of Section 12 of the Plan. 
  

	7.	Grants of Options. 

 Each Option grant shall be
evidenced by a written instrument containing such terms and conditions, not inconsistent with the Plan, as the Committee may approve. Except as otherwise specifically provided in this Plan, Options granted pursuant to the Plan shall be subject to
the following terms and conditions: 
 (a) Option Price. The option price of all ISOs shall be 100% of the Fair Market Value of the
Jacobs Common Stock on the date of grant. The option price of all NQSOs shall be not less than 100% of the Fair Market Value of the Jacobs Common Stock on the date of grant. 
 (b) Duration of Options. The duration of Options shall be determined by the Committee, but in no event shall the duration exceed ten
(10) years from the date of its grant. 
 (c) Other Terms and Conditions. Options may contain such other provisions, not
inconsistent with the provisions of the Plan, as the Committee shall determine appropriate from time to time, including, without limitation, provisions for accelerated vesting of Options, and provisions relating to the termination of Options for
conduct deemed detrimental to the Company and/or its Related Companies; provided, however, that, except in the event of a Change in Control or the Disability or death of the employee, no Option shall be exercisable in whole or in part for a period
of twelve (12) months from the date on which the Option is granted. Neither the grant nor award of an Incentive Award under the Plan constitutes an agreement of employment between the Employee and the Company or a Related Company. The receipt
of an Incentive Award does not constitute a right acquired by the recipient to any other form of compensation, or to any future benefit or compensation, or to participate in any other benefit plan or program sponsored by the Company or Related
Company, or to receive additional Incentive Awards under the Plan in the future. The grant 

 
of an Option to any employee shall not affect in any way the right of the Company and any Related Company to terminate the employment of the holder thereof.

 (d) ISOs. The Committee, with respect to each grant of an Option to an employee, shall determine whether such Option shall be an
ISO, and, upon determining that an Option shall be an ISO, shall designate it as such in the written instrument evidencing such Option. Each written instrument evidencing an ISO shall contain all terms and conditions required by Section 422 of
the Code. If the written instrument evidencing an Option does not contain a designation that it is an ISO, it shall not be an ISO. 
 The
Employee to whom an ISO is granted must be eligible to receive an ISO pursuant to Section 422 of the Code. 
 The aggregate Fair Market
Value (determined in each instance on the date on which an ISO is granted) of the Jacobs Common Stock with respect to which ISOs are first exercisable by any employee in any calendar year shall not exceed $100,000 for such employee. If any
Majority-Owned Related Company of the Company shall adopt a stock option plan under which options constituting ISOs may be granted, the fair market value of the stock on which any such ISOs are granted and the times at which such ISOs will first
become exercisable shall be taken into account in determining the maximum amount of ISOs that may be granted to the employee under this Plan in any calendar year. 
  

	8.	Exercises of Options. 

 (a) An exercisable Option
may be exercised in whole or in part. However, an Option may not be exercised in a manner that will result in fractional shares of Jacobs Common Stock being issued. 
 (b) All, or any portion, of an exercisable Option shall be deemed exercised upon delivery to the representative of the Company designated for such purpose by the Committee of all of the following: (i) notice of
exercise in such form and in such manner as the Committee may authorize; (ii) payment of the exercise price for such Options being exercised; (iii) such representations and documents as the Committee may, in its sole discretion, deem
necessary or advisable to effect compliance with all applicable provisions of the Securities Act of 1933, as amended, and any other federal, state, or foreign securities laws or regulations; and (iv) in the event that the Option is being
exercised pursuant to Section 9 of the Plan by any person other than the Employee, proof deemed appropriate by the Committee in its sole discretion of the right of such person to exercise the Option. 
 (c) The option price shall be paid in full at the time of exercise. Payment is to be made in cash or, at the discretion of the Committee and upon
conditions established by it, by the delivery or constructive exchange of shares of Jacobs Common Stock acceptable to the Committee owned by the Employee for such period of time as may be established by the Committee. 
 (d) The Committee may make such provisions as it may deem appropriate for the withholding or payment by the Employee of any taxes which it determines are
required in connection with an exercise of an Option, and an Optionee’s rights in any Incentive Award are subject to satisfaction of such conditions. If permitted by the Committee, the Employee may elect to satisfy all or any portion of such
taxes by instructing the Company to withhold shares of Jacobs Common Stock that would otherwise be issuable to the employee by reason of the exercise. 

 If shares of Jacobs Common Stock are delivered or constructively exchanged to pay the option price, or if
shares of Jacobs Common Stock otherwise issuable to the employee by reason of the exercise are withheld to satisfy tax liabilities, the value of the shares delivered or exchanged or that are withheld shall be computed using the Fair Market Value of
the Jacobs Common Stock delivered or exchanged, or withheld, determined as of the date of exercise. 
  

	9.	Transferability of Incentive Awards. 

 Except as
otherwise provided by the Committee: 
 (a) Incentive Awards granted or awarded pursuant to the Plan shall not be transferable other than by
will or by the laws of descent and distribution. The rights of an Employee under this Plan shall not be assignable or transferable pursuant to a qualified domestic relations order as defined in the Code or Title I of the Employee Retirement Income
Security Act or the rules thereunder. 
 (b) During the lifetime of an Employee, an Option shall be exercisable only by the Employee
personally, or by the Employee’s legal representative. 
  

	10.	Effect on Options of Termination of Employment, Other Changes of Employment or Employer Status, Death, Retirement, or a Change in Control 

 Schedule A, attached hereto, establishes the effects on outstanding Options of an Employee’s termination of employment, other changes of employment
or employer status, death, Disability, Retirement, or a Change in Control, and is hereby incorporated by reference. The Committee may approve grants of Options containing terms and conditions different from, or in addition to, those set forth in
Schedule A. 
 Notwithstanding the provisions of the foregoing paragraph, no Option may have a term of more than ten years. 
 In the case of leaves of absence, employees will not be deemed to have terminated employment unless the Committee, in its sole discretion, determines
otherwise. 
 Except as provided in Paragraph 18, the Committee may, with the consent of the affected employee, modify the terms and
conditions pertaining to the effect of an employee’s termination on the expiration or exercisability of an Option subsequent to the date of grant. 
  

	11.	No Rights as a Shareholder. 

 An employee or a
transferee of an employee pursuant to Section 9 shall have no rights as a shareholder with respect to any Jacobs Common Stock covered by an Option or receivable upon the exercise of an Option until the employee or transferee shall have become
the holder of record of such Jacobs Common Stock, and no adjustments shall be made for dividends in cash or other property or other distributions or rights in respect to such Jacobs Common Stock for which the record date is prior to the date on
which the employee or transferee shall have in fact become the holder of record of the share of Jacobs Common Stock acquired pursuant to the Incentive Award. 

	12.	Adjustment in the Number of Shares and in Option Price. 

 Except as provided in Paragraph 18, in the event there is any change in the shares of Jacobs Common Stock through the declaration of stock dividends, or stock splits or through recapitalization or merger or consolidation or combination of
shares or spin-offs or otherwise, the Committee or the Board of Directors of the Company shall make such adjustment, if any, as it may deem appropriate in the number of shares of Jacobs Common Stock available for Options as well as the number of
shares of Jacobs Common Stock subject to any outstanding Option and the option price thereof. Any such adjustment may provide for the elimination of any fractional shares that might otherwise become subject to any Option without payment therefore.

  

	13.	Awards of Restricted Stock. 

 (a) An Incentive Award
in the form of shares of Restricted Stock may be awarded under this Section 13 as determined by the Committee. Restricted Stock awarded under this Plan shall not be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of,
and in the event of termination of the Employee’s employment with the Company for any reason (including death and Disability unless the Committee in its sole discretion terminates the Forfeiture Restrictions following the death or Disability of
such Employee), the Employee shall be obligated, for no consideration, to forfeit and surrender such shares (to the extent then subject to the Forfeiture Restrictions) to the Company. The restrictions against disposition and the obligation to
forfeit and surrender shares to the Company are herein referred to as “Forfeiture Restrictions”, and the shares that are then subject to the Forfeiture Restrictions are referred to as “Restricted Stock.” Certificates representing
Restricted Stock shall be appropriately legended to reflect the Forfeiture Restrictions. 
 (b) The number of shares of Restricted Stock that
may be awarded under this Plan shall be limited to 10% of the first 11,200,000 shares authorized for issuance as Incentive Awards under this Plan, and 50% of any shares authorized for issuance under this Plan in excess of 11,200,000. Any shares of
Restricted Stock awarded under this Plan that are forfeited shall again be available for reissuance as Restricted Stock. 
 (c) The
Forfeiture Restrictions with respect to Restricted Stock issued under this Section 13 shall lapse and be of no further force and effect upon the expiration of the period of time fixed by the Committee upon the issuance of such Restricted Stock.

 (d) Should the Employee’s employment with the Company or Related Company be terminated for any reason upon or within thirty-six
(36) months following a Change in Control, then all remaining Forfeiture Restrictions, if any, shall be deemed to have lapsed. 
 (e) In
order to enforce the restrictions imposed upon shares of Restricted Stock, the Committee may require the recipient to enter into an escrow agreement providing that the certificates representing such shares of Restricted Stock shall remain in the
physical custody of an escrow holder until any or all of the restrictions imposed pursuant to the Plan expire or shall have been removed. 
 (f) The Committee may make such provisions as it may deem appropriate for the withholding or payment by the Employee of any withholding taxes which it determines are required in connection the lapse of Forfeiture Restrictions, and an
Employee’s rights in any Incentive Award are subject to satisfaction of such conditions. If permitted by the Committee, the Employee may elect to satisfy all or any portion of such taxes by instructing the Company to withhold shares of Jacobs
Common Stock as to which the Restrictions have lapsed. 

 (g) If shares of Jacobs Common Stock are withheld to satisfy tax liabilities, the value of such shares
shall be computed using the Fair Market Value of the Jacobs Common Stock on the date of Forfeiture Restrictions lapse. 
 (h) All of the
foregoing restrictions, terms and other conditions regarding shares of Restricted Stock shall be evidenced by a written agreement between the Company and the Employee and containing such terms and conditions, not inconsistent with the Plan, as the
Committee shall approve. 
  

	14.	Amendments, Modifications and Termination of the Plan. 

 (a) From time to time, the Board of Directors or the Committee may suspend the Plan, in whole or in part. Except as provided in this Paragraph 14 and in Paragraph 18, from time to time, the Board of Directors or the Committee may terminate
or amend the Plan, in whole or in part, including the adoption of amendments deemed necessary or desirable to qualify the Incentive Awards under the laws (including tax laws) of various countries and under rules and regulations promulgated by the
Securities and Exchange Commission with respect to employees who are subject to the provisions of Section 16 of the 1934 Act, or to correct any defect or supply an omission or reconcile any inconsistency in the Plan or in any Incentive Award
granted hereunder, or for any other purpose or to any effect permitted by applicable laws and regulations, without the approval of the shareholders of the Company. However, in no event may additional shares of Jacobs Common Stock be allocated to the
Plan, or may the minimum exercise price for Options be reduced, or may any outstanding Option be repriced or replaced without shareholder approval. Without limiting the foregoing, the Board of Directors or the Committee may make amendments
applicable or inapplicable only to employees who are subject to Section 16 of the 1934 Act. 
 (b) No amendment or termination or
modification of the Plan shall in any manner affect any Incentive Award theretofore granted without the consent of the employee, except that, except as provided in Paragraph 18, the Committee may amend or modify the Plan in a manner that does affect
Incentive Awards theretofore granted upon a finding by the Committee that such amendment or modification is in the best interest of holders of outstanding Incentive Awards affected thereby. 
 (c) Grants of ISOs may be made under this Plan until January 22, 2019 or such earlier date as this Plan is terminated, and grants of NQSOs and
awards of Restricted Stock may be made until all of the shares of Jacobs Common Stock authorized for issuance hereunder (adjusted as provided in Sections 5 and 12) have been issued or until this Plan is terminated, whichever first occurs. The Plan
shall terminate when there are no longer Options outstanding under the Plan, or when there are no longer shares of Restricted Stock outstanding that are subject to Forfeiture Restrictions, unless earlier terminated by the Board or by the Committee.

  

	15.	Non-U.S. Employees. 

 The Committee may determine,
in its sole discretion, whether it is desirable or feasible under local law, custom or practice to grant or award Incentive Awards to Employees in countries other than the United States. Except as provided in Paragraph 18, in order to facilitate any
such grants or awards, the Committee may provide for such modifications and additional terms and conditions (“special terms”) in the grant and award agreements to Employees who are employed outside the United States (or who 

 
are foreign nationals temporarily within the United States) as the Committee may consider necessary, appropriate or desirable to accommodate differences in,
or otherwise comply with, local law, policy or custom or to facilitate administration of the Plan. The Committee may adopt or approve sub- plans, appendices or supplements to, or amendments, restatements or alternative versions of, the Plan as it
may consider necessary, appropriate or desirable for purposes of implementing any special terms or facilitating the grant or award of an Incentive Award, without thereby affecting the terms of the Plan as in effect for any other purpose. The special
terms and any appendices, supplements, amendments, restatements or alternative versions, however, shall not include any provisions that are inconsistent with the terms of the Plan as then in effect, unless the Plan could have been amended to
eliminate such inconsistency without further approval by the Board of Directors of the Company. 
  

	16.	Governing Law. 

 The Plan shall be governed by and
shall be construed and enforced in accordance with the laws of the State of Delaware without giving effect to its choice of law rules. 
  

	17.	Adoption of the Plan. 

 The Plan shall become
effective upon its approval by the Board of Directors of the Company and a majority of the shares present at a duly called meeting of the shareholders of the Company held within twelve months of approval by the Board. However, Incentive Awards may
be granted at any time following the approval of the Plan by the Board, but no shares may be issued pursuant to any Incentive Awards until the Plan has been approved by the shareholders, and all listing requirements of all securities exchanges on
which the Jacobs Common Stock is listed have been satisfied. 
  

	18.	Code Section 409A.

 It is intended that the
Incentive Awards granted pursuant to this Plan shall not constitute “deferrals of compensation” within the meaning of Section 409A of the Code and, as a result, shall not be subject to the requirements of Section 409A. The Plan
is to be interpreted in a manner consistent with this intention. 
 Notwithstanding any other provision in this Plan, a new Incentive Award
may not be issued if such Award would be subject to Section 409A of the Code, and an existing Incentive Award may not be modified in a manner that would cause such Award to become subject to Section 409A of the Code. 

 SCHEDULE A 
 to the 
 JACOBS ENGINEERING GROUP INC. 
 1999 Stock Incentive Plan 
  

					
	 Event
	 	 Impact on Vesting
	 	 Impact on Exercise Period

	Employment terminates due to Retirement	 	Unvested Options are forfeited	 	Option expiration date provided in the grant agreement continues to apply
			
	Employment terminates due to Disability or death	 	All Options become immediately vested	 	Option expiration date provided in the grant agreement continues to apply
			
	Employment terminates upon, or within 36 months following, a Change in Control	 	All Options become immediately vested	 	Option expiration date provided in the grant agreement continues to apply
			
	Employment terminates for reasons other than a Change in Control, Disability, Retirement, or death (for purposes of this section, the receipt of severance pay or similar compensation by
the Optionee does not extend his or her termination date)	 	Unvested Options are forfeited	 	Expires on the earlier to occur of (1) the Option expiration date provided in the grant agreement, or (2) three months from the date of termination
			
	Optionee is an employee of a Related Company, and the Company’s investment in the Related Company falls below 20% (this constitutes a termination of employment under the Plan)	 	Unvested Options are forfeited	 	Expires on the earlier to occur of (1) the Option expiration date provided in the grant agreement, or (2) three months from the date of termination
			
	Employee becomes an employee of an entity in which the Company’s ownership interest is less than 20% (this constitutes a termination of employment under the Plan)	 	Unvested Options are forfeited	 	Expires on the earlier to occur of (1) the Option expiration date provided in the grant agreement, or (2) three months from the date of termination
			
	Employment transferred to a Related Company	 	Vesting continues after transfer	 	Option expiration date provided in the grant agreement continues to apply
			
	Death after termination of employment but before Option has expired	 	Not applicable	 	Right of executor or administrator of estate (or other transferee permitted by Section 9) terminates on the earlier to occur of (1) the Option expiration date provided in the grant agreement, or
(2) the Option expiration date that applied immediately prior to the death of the OptioneeForm of First Amendment to Executive Employment Agreement

 Exhibit 10.1 
 FIRST AMENDMENT 
 TO 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 This First Amendment to Executive Employment
Agreement, dated effective as of January __, 2009 (the “First Amendment”), amends that certain Executive Employment Agreement dated effective as of January 1, 2009 (the “Original Agreement”), by and between
Northstar Neuroscience, Inc. (“Northstar”) and Brian Dow (“Employee”), and is entered into by and between Northstar and Employee. All capitalized terms used in this First Amendment, but not defined herein, shall
have the meanings given to them in the Original Agreement. 
 RECITALS 
 A. The Board of Directors of Northstar (the “Board”) has approved a Plan of Complete Liquidation and Dissolution (the
“Plan”) and in furtherance thereof Northstar will terminate the employment of most of its employees on or about January 31, 2009. 
 B. Northstar desires to retain the services of Employee to assist Northstar in administering and implementing the Plan and all operational aspects related to the Plan and the operation of Northstar pending and
following shareholder approval of the Plan, including but not limited to assisting Northstar in preparing for the shareholder meeting to approve the Plan, continuing to assist Northstar in complying with its public company reporting obligations,
winding down the operations of Northstar, assisting in the sale of Northstar’s assets and distributions to shareholders following shareholder approval of the Plan. 
 C. If Employee were terminated without Cause on January 31, 2009, Employee would be entitled under the Original Agreement to receive, among other things, full acceleration of all stock options and other equity
awards granted between April 1, 2008 and January 15, 2009. 
 D. Northstar desires to incent Employee to remain employed by
Northstar through at least the end of the third quarter of 2009 to assist Northstar in the manner described above. 
 AGREEMENT 

 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1. Amendment to Section 7. There is
hereby added a new Section 7.6 to the Original Agreement to read in its entirety as follows: 
 “7.6 Retention Bonus. If
Employee (a) does not voluntarily terminate his employment with Northstar prior to the earlier of (1) the date mutually agreed by Northstar and Employee, and (2) September 30, 2009 (the “Termination Date”),
(b) is not terminated for Cause by Northstar prior to the Termination Date, and (c) achieves the milestones described on the attached Exhibit A, for which Employee is hereby directed and authorized to complete, pending
shareholder approval for those milestones dependent on obtaining shareholder approval, on or prior to the Termination Date, then: 
 (i) Employee will receive a lump sum cash bonus payment equal to $75,000, payable within five (5) days following the Termination Date; and 
  

 1 

 (ii) on the Termination Date, or such other date as mutually agreed by Northstar and
Employee, Northstar will terminate Employee’s employment without Cause and will treat such termination as (A) a termination without Cause prior to a Change in Control under Section 7.3 of the Original Agreement, if Northstar has not
filed Articles of Dissolution under the Plan as of such date of termination, or (B) a termination without Cause following a Change in Control under Section 7.4 of the Original Agreement, if Northstar has filed Articles of Dissolution under
the Plan as of such date of termination, and in each case will accord Employee all rights to which he is entitled under Section 7.3 or 7.4 of the Original Agreement, as applicable.” 
 2. Amendment to Section 13. Section 13 of the Original Agreement is hereby amended and restated in its entirety to read as
follows: 
 “13. Entire Agreement. This Agreement, together with the First Amendment to Executive Employment Agreement dated
January __, 2009, including the Confidentiality Agreement incorporated herein by reference, the Restricted Stock Grant Agreement, the 2006 Plan, the Northstar 1999 Stock Option Plan and related option and other equity award documents in place at the
time of this signing, constitutes the entire agreement between the parties relating to this subject matter and supersedes all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral, including the
Severance Program for Director Level Employees (July 2008) dated July 28, 2008 (except that the 2008 revised bonus target total of $18,000 referenced therein shall survive). This Agreement may be amended or modified only by a supplemental
written agreement signed by Employee and an authorized representative of Northstar. No oral waiver, amendment or modification will be effective under any circumstances whatsoever.” 
 3. Acceleration of Vesting. In consideration of Employee’s execution of this First Amendment, effective as of January 31, 2009
Northstar hereby agrees to accelerate (A) in full the vesting of all then-unvested shares subject to stock options and other equity awards that were granted by Northstar to Employee between April 1, 2008 and January 15, 2009 and
(B) the vesting of all other stock options held by Employee as of January 31, 2009 by an additional 12 months. 
 4. Effect
of Amendment. Except as amended by this First Amendment, the terms of the Original Agreement remain in full force and effect. 
 5.
Counterparts. This First Amendment may be executed in two counterparts, each of which shall be deemed an original but both of which together shall constitute one and the same instrument. 
 The parties have executed this First Amendment effective as of the date and year first written above. 
  

									
	NORTHSTAR NEUROSCIENCE, INC.	 		 	Brian Dow
					
	By:	 	 	 		 	By:	 	 
	Name:	 	 	 		 		 	
	Title:	 	 	 		 		 	

  

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