Document:

exv10w1

 

EXHIBIT 10.1

EXECUTION COPY

	 	 	 
	Name:

	 	 Neil S. Fiske
	Position:

	 	 President and Chief Executive Officer
	Start Date:

	 	 July 9, 2007
	Base Salary:

	 	 $1,100,000
	Incentive Allocation Percentage

	 	 110%
	Incentive Guarantee for 2007:

	 	 $600,000
	Annual Executive Perquisite Allowance:

	 	 $20,000
	Sign-On Bonus:

	 	 $600,000
	Restricted Stock Units (RSUs):

	 	 $500,000 of shares based on FMV on grant date
	Stock Options:

	 	 700,000 shares
	Deferred Compensation Award

	 	 $1,500,000

Dear Neil:

This letter agreement (“Agreement”) outlines the key components of your employment and compensation
package with the Company.

Areas of Responsibility

In your role as President and Chief Executive Officer of Eddie Bauer Holdings, Inc. (“Holdings”)
and Eddie Bauer, Inc. (“Eddie Bauer”) (collectively, the “Company”), you will be the highest
ranking officer of the Company and will perform the customary duties and have the customary
responsibilities of such position, as well as such duties and responsibilities reasonably assigned
by the Company’s board of directors (the “Board”). At all times, you will report to the Board and
no other individual within the Company and all other employees of the Company will be responsible
to report to you or such other individuals as you designate. Beginning on the start date set forth
above, you are expected to devote your full business efforts and time exclusively to the Company.
The foregoing is not intended to preclude you from serving on civic or charitable boards or
committees or managing personal investments, so long as such activities do not conflict with the
Company’s business interests or interfere with the performance of your responsibilities hereunder.
With Board approval you may serve as a member of the board of directors of other companies,
provided such companies do not compete with the business of the Company and such services do not
materially interfere with the performance of your duties under this Agreement. Your personal and
family investments shall not conflict with the Company’s business interests. The existence of a
conflict shall be determined in good faith by the Board. With respect to personal or family
investments that you hold prior to or on the Effective Date, the existence of a conflict shall be
determined in good faith by the Board as soon as possible after you disclose any such investments,
but the ownership of no more than one percent of the outstanding securities of any company whose
stock is traded on a national securities exchange or is regularly quoted as a national market
security on an interdealer quotation system shall not be a conflict.

Board Membership

You also will serve as a member of the Board and may serve on certain committees of the Board or as
an officer and/or director of any of the Company’s subsidiaries or affiliates, in all cases without
additional compensation or benefits. The Company will use its best efforts to nominate you for
appointment or election to the Board and cause you to be elected to the Board at each annual
stockholder meeting at which your term as a director comes up for election.

 

 

Term

This Agreement shall be effective upon execution by both parties (the “Effective Date”). You have
agreed to the start date specified above. The payments and benefits specified in this Agreement
shall not begin until your employment start date. The term of this Agreement (the “Term”) is three
years from your start date, but can be terminated by either party during the Term (or prior to the
Term for Misconduct) upon 15 days advance written notice or by mutual agreement. On the third
anniversary of your start date, this Agreement will expire and your continued employment thereafter
will be on an at-will basis subject to termination by either party upon 15 days advance written
notice or by mutual agreement. In the event the Term expires, your termination on or after the
expiration of the Term will be subject to the Company’s regular severance plan policies for
executives. However, in the event of your involuntary termination other than for Misconduct, your
resignation for Good Reason, or your termination in connection with any event that entitles you to
any severance under applicable Company plans or policies for executives the benefit you receive
will be not less than your then current Base Salary on a monthly basis for a period of 24 months
after the date your employment terminates and not less than 24 months of continued group health
coverage at the associate rate on the same terms and conditions applicable to the Group Health
Continuation Coverage provided under the Severance Benefits provisions of this Agreement. In
addition, the restrictive covenants, dispute resolution, 280G gross-up, liability insurance, and
indemnification provisions provided herein shall continue to apply as long as you continue to be
employed by the Company. The Company anticipates that you and your management team will make
proposals and recommendations for adoption by the Compensation Committee of the Board and the
Company agrees that as soon as possible, but not later than the end of the Term of this Agreement,
it will implement and maintain market competitive severance and change in control benefit plans
that will apply to you and to all other executives of the Company (subject to the minimum severance
and health coverage covenants of the Company in this section and the Severance Benefits section
below). However, you and the Company acknowledge and agree that the preceding provisions with
respect to market competitive severance and change in control benefit plans are included for the
sole benefit of you and the Company, and that nothing herein, whether express or implied, shall
create any right in any other person, including, without limitation, any other employees, former
employees, any participant in any Company benefit plan, or any beneficiary thereof, or be treated
as an amendment or other modification of any Company benefit plan.

Base Salary and Executive Personal Allowance

Your Base Salary and Annual Personal Allowance will be paid in equal amounts, over 26 pay periods.
Each pay period represents a two-week span of time beginning on a Monday and ending on a Friday of
the following week. Payment is dispersed the Friday of the week after conclusion of the two-week
period.

Annual Incentive Plan

During your employment with the Company, you will participate in the Company Annual Incentive Plan
(the “Annual Incentive Plan”) in accordance with the terms and conditions of the Performance Award
provisions of the Eddie Bauer Holdings, Inc. 2005 Stock Incentive Plan (the “2005 Plan”) as in
effect from time to time or such successor plan that may be adopted by the Company. Your allocable
share of the incentive allocation pool under the Annual Incentive Plan for 2007 is based on 110% of
your Base Salary (the “Target Percentage”). Your share of the incentive allocation pool for 2007
is based on the percentage of the pool determined by dividing your Target Percentage by the
aggregate Target Percentages of all eligible participants for the portion of the year in which you
are eligible. Payment under the Annual Incentive Plan will occur if the Company reaches target
performance goals. You are guaranteed to receive at least $600,000 of annual incentive payments
for 2007. The 2007 plan pays out on a quarterly and annual basis. The quarterly portion pays
after quarterly sales results are calculated. The year-end payout occurs after Annual Incentive
Plan year results are finalized and at the same time incentive payments under the Annual Incentive
Plan are paid to all other participants. If the amount you receive under the Annual Incentive Plan
for the 2007 plan year is less than

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$600,000 (the “minimum bonus amount”), the difference will be
made up on the year-end payout date. If you voluntarily resign or are terminated due to Misconduct
prior to the payout you will not be eligible to receive any payments under the 2007 Annual
Incentive Plan beyond amounts paid prior to the resignation or termination. For periods after
2007, it is anticipated that you and your management team will make proposals and recommendations
for consideration by the Compensation Committee of the Board for an appropriate annual incentive
arrangement structure and performance parameters that will be applicable to all executives and
other associates. It is intended that your Target Percentage will provide an annual bonus
opportunity that equates to a bonus equal to 110% of your Base Salary if target performance
criteria are achieved. The Company anticipates that the Annual Incentive Plan will be performance
based, so that your actual payout may range
from 0% to 200% of your Target Percentage for any fiscal year (subject to the Company’s obligation
to provide the minimum bonus amount for 2007).

Equity

You are eligible to participate in our stock incentive program. As part of this program, you will
receive restricted stock units (“RSUs”) and stock options. You will receive RSUs based on the
number of shares with a fair market value equal to $500,000 on the grant date and 100,000 time
vested stock options. In addition, you will receive performance based options to purchase up to
600,000 shares on the terms described below. These awards are subject to the terms and conditions
of the 2005 Plan. These shares will be granted at the fair market value on your start date. Fair
market value will be determined according to the terms of the 2005 Plan based on the average
selling price during the 30-day period ending on July 8, 2007, the day before your start date. For
this purpose, the term “average selling price” means the arithmetic mean of such selling prices on
all trading days during the specified period. In the event your start date is revised or delayed,
the grant date shall be your actual start date and the period for determining the average selling
price may not be more than 30 days before the grant date (and may not begin prior to June 8, 2007).
The commitment to grant the equity awards on your start date based on such valuation method was
approved by the Compensation Committee at a meeting on June 7, 2007.

The grant agreements for the equity grants to be made pursuant to this Agreement will provide for
the accelerated vesting specified in the Severance section, the Death and Disability section, and
the Change in Control section below if an event triggering such acceleration occurs at any time
before the full vesting of the equity granted, regardless of whether such event occurs during or
after the Term.

RSUs. Except as otherwise provided herein, the RSUs will be subject to forfeiture until you have
completed four years of service from your start date and at that time the RSUs will become 100%
vested. RSUs will be settled in shares of common stock at the vesting date, subject to your
payment and satisfaction of applicable withholding requirements.

Stock Options. Your time vested stock options will vest at 25% per year over four years and will
have a maximum term of 10 years. Your first time vested stock option vest will be one year from
your start date. In addition you will receive 600,000 performance based options granted at the
Fair Market Value (as determined above) upon your start date, consisting of 300,000 five year
performance options and 300,000 seven year performance options. The five year performance options
will have a maximum term of 10 years if the options become vested and will only vest if the closing
price of the Company common stock reaches $25 per share for 30 consecutive trading days within five
years of the grant date. The seven year performance options will have a maximum term of 10 years
if the options become vested and will only vest if the closing price of the Company common
stock reaches $35 per share for 30 consecutive trading days within seven years of the grant date.

You may also receive future stock awards commensurate with your position after the third
anniversary of your start date. Any additional RSU or stock option awards will be subject to
Compensation Committee approval and the terms and conditions in effect at that time. Eligibility
for additional equity incentive awards may be conditioned on your compliance with any stock
ownership guidelines that

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may be adopted by the Compensation Committee or the Board. At the
present time, the Company has not adopted specific stock ownership guidelines, but intends to adopt
such guidelines for all executive level positions. In anticipation of the adoption of such
guidelines, you agree that the ownership guideline applicable to you under any guidelines to be
adopted will provide an ownership guideline that seeks to enable you to acquire and hold stock with
a fair market value equal to five times your Base Salary. It is anticipated that the stock
ownership guidelines adopted by the Compensation Committee or the Board will provide certain
reasonable transition periods to enable you to attain the specified guideline ownership level, will
specify the extent, if any, to which your outstanding equity awards will be counted in satisfaction
of the ownership guidelines and may provide certain exceptions to permit sales within specified
guidelines provided that you are making satisfactory progress toward keeping or maintaining the
recommended level of stock ownership or to the extent such sales may be necessary to satisfy tax
obligations associated with the exercise or distribution of an equity award. You agree that you
will be subject to any stock ownership guidelines
that may be adopted in the future for all executives provided they are consistent with the
foregoing concepts or you otherwise consent.

Deferred Compensation Award

You will be entitled to a Company provided discretionary allocation of $1,500,000 (the “Deferred
Compensation Award”) to be credited to a Company Contribution Account for your benefit under the
terms of the Company’s Nonqualified Deferred Compensation Plan. The Deferred Compensation Award
will vest in three equal installments of 1/3rd of the account balance on each of the
first three anniversaries of your start date. Deferred amounts will be allocated, pursuant to your
election, among the investment funds available under the terms of the Nonqualified Deferred
Compensation Plan and, except as otherwise set forth herein, will be distributed to you in a lump
sum on the third anniversary of your start date.

Sign-On Bonus

A sign-on bonus of $600,000 (the “Sign-On Bonus”) will be paid in a lump sum on your start date.
If you voluntarily resign before the completion of the 12-month period from your start date, the
Sign-On Bonus must be repaid. You shall have six months from your termination date to make any
such repayment.

Legal Fees

Within 14 calendar days of this Agreement’s becoming effective and your providing substantiation of
legal fees incurred in connection with the preparation and negotiation of this Agreement, the
Company will reimburse you for your legal fees incurred in connection with the Agreement’s
preparation and negotiation, up to a maximum dollar amount of $20,000.00.

Annual Merit Review

Your Base Salary will be subject to an annual merit review during the Company’s performance review
cycle occurring in March each year, beginning with the review cycle in 2008 for performance in
2007. Your performance may be reviewed for the purpose of Merit Increases in compensation from
time to time, generally on an annual basis and may be increased, or not, as determined by the
Compensation Committee, in its sole discretion.

Business Expenses

Upon presentment of verifiable invoices and other documentation as may be requested by the Company,
and subject to the Company’s expense reimbursement policies applicable to similarly situated
executives, the Company will reimburse you for the reasonable costs and expenses which you incur in
connection with the performance of your duties under this Agreement.

Additional Current Benefits

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Benefits Package: Eddie Bauer provides a competitive package of benefit plans including medical,
dental, vision, and 401(k). The Company reserves the right to amend or modify the benefits plans at
any time.

Additionally, you will be entitled to continue with examinations for you and your spouse at Mayo
Clinic as part of their executive health screening process for reasonable and customary costs.

Reasonable Relocation Costs: Upon presentation of invoices, the Company shall reimburse you for
reasonable relocation expenses in accordance with the Company’s relocation policy, including: (i)
up to six months of temporary housing expense; (ii) travel expenses for you and your spouse for
house hunting; (iii) costs associated with the packing, moving and unpacking of household goods and
furnishings to a new permanent residence in the greater Seattle area (the “Permanent
Residence”); and (iv) closing costs, other than prepaid items such as interest and real estate
taxes, associated with the purchase of such Permanent Residence; provided that such
costs or fees are incurred during the Term. In addition, the Company will pay you a moving
allowance of $20,000 for unsubstantiated miscellaneous moving expenses at the same time as the
other moving expenses are paid. If the gross sales price of your current residence in Columbus is
less than the actual purchase price of such Columbus residence as set forth on the settlement
statement for the closing of such purchase (a true, complete and correct copy of which statement
you shall provide to the Company within 30 days after the Effective Date), the Company agrees to
pay you a relocation bonus equal to the amount of any such loss, up to a maximum amount of
$200,000, provided that you act in good faith to obtain the highest gross sales price for your
residence in an arms-length transaction. The moving allowance and relocation bonus will be treated
as wages subject to withholding of applicable federal, state, and other income and employment taxes
and deductions as required by law. All other relocation expense reimbursements shall be subject to
the tax treatment provided by the Company’s relocation expense policy and applicable tax laws. The
Company acknowledges that you may choose for personal reasons not to relocate your family
immediately from the Columbus area, but that you intend to relocate to the Seattle area within 12
months so that after that period you will no longer be commuting from Columbus. Accordingly, the
Company shall reimburse you for reasonable travel costs and expenses incurred by you within 12
months after your start date for travel between the Columbus area and the Seattle area.
Additionally, the relocation benefits described in subclauses (i), (ii) and (iii) above shall be
available for a period of 12 months from your start date and the real estate related benefits
described in subclause (iv) above (i.e., the relocation bonus attributable to any loss on the sale
of your home in Columbus and the closing costs attributable to the acquisition of a permanent
residence in the Seattle area) shall be available within 24 months of your start date. However,
the Company shall have no responsibility or liability if any such delay changes the tax treatment
of such relocation benefits.

Associate Discount: Associates, and their eligible dependents, receive a 30% merchandise discount
at Eddie Bauer.

Vacation Accrual: You accrue vacation hours at the rate of four weeks per year. In addition to
your vacation accrual, you will be eligible for four personal days per year. These accruals will
be prorated from your start date.

Severance Benefits: During the Term of this Agreement, in the event that your employment is
terminated by the Company for reasons other than Misconduct or you terminate your employment for
Good Reason, in addition to any accrued but unpaid Base Salary, accrued vacation and unpaid
business expense reimbursements (the “Accrued Obligations”) the Company agrees to provide the
following severance benefits:

Accrued Bonus. Any prior year (or prior quarter) accrued bonus that has been earned and certified
by the Compensation Committee but has not been paid.

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Severance Pay. The Company will continue to pay the prorata portion of your then current Base
Salary and an amount equal to 1/12th of your Annual Incentive Plan Target Percentage on
a monthly basis for a period of 24 months after the date your employment terminates (the “Severance
Pay”). You will not be obligated to seek new employment and the amount of any Severance Pay
payments otherwise due hereunder will not be offset or reduced by any compensation earned as a
result of employment by another employer during the period that Severance Pay is paid by the
Company.

Accelerated Vesting. The RSUs and time vested stock options granted at your start date will become
vested on a pro rata basis equal to the percentage determined by dividing (a) the sum of: (i) the
number of full months of completed service (based on the anniversary of your start date), plus (ii)
12 months, by (b) 48 months. The Deferred Compensation Awards will become vested on a pro rata
basis equal to the percentage determined by dividing (x) the sum of: (i) the number of full months
of completed service (based on the anniversary of your start date), plus (ii) 12 months, by (y) 36
months. All other stock options, bonus or other equity or incentive awards will be subject to the
terms of the applicable plan and award agreements.

Group Health Continuation Coverage. The Company will provide up to 24 months of continued group
health coverage at the associate rate. Coverage will be provided under the Company group health
plan for the maximum period for which COBRA coverage is available under the terms of such plan, at
the same coverage for you and your family under the Company’s group health plan as is provided by
the coverage which exists immediately before the date of termination, unless and until you are
otherwise covered by another group health plan (the “Continuation Coverage”). You will be
responsible for electing Continuation Coverage and paying the amount of the applicable premium that
you would have paid for yourself and your covered family members if you continued to be an active
associate. During any period that the Company remains obligated to provide Continuation Coverage
and such Continuation Coverage is not available under the terms of the Company’s group health plan,
the Company will pay the additional cost of an individual insurance policy that provides benefits
coverage that in the aggregate is substantially similar to the level of benefits provided under the
Company’s group health plan. You acknowledge and agree that it may not be practicable to obtain an
individual insurance policy that provides coverage that is identical to the level of benefits
provided under the Company’s group health plan and you and the Company agree to reasonably
cooperate in good faith to determine the amount necessary to obtain and maintain any individual
health insurance policy that may be required to provide substantially similar benefits coverage.

In the event of involuntary termination by the Company for reasons other than Misconduct after the
Term of this Agreement or your resignation for Good Reason, your severance benefits and COBRA
medical coverage will be governed by the Company Severance Pay Plan in effect at the time of such
termination, but the benefit you receive will be not less than your then current Base Salary on a
monthly basis for a period of 24 months after the date your employment terminates and not less than
24 months of continued group health coverage at the associate rate on the same terms and conditions
applicable to the Group Health Continuation Coverage provided under the Severance Benefits
provisions of this Agreement.

You will not be eligible for any benefits under this section, other than the Accrued Obligations,
in the event of voluntary separation or termination by the Company for Misconduct. Any payments
pursuant to this section, other than the Accrued Obligations, will be subject to your execution of
a waiver and release of claims against the Company substantially in a form attached hereto as
Exhibit A. Notwithstanding the foregoing, you will become a participant in the Company’s
Senior Officer Change in Control Compensation Benefit Plan (the “Change in Control Plan”) and for
so long as you remain a participant thereunder, the terms of the Change in Control Plan will apply
to all changes in employment status related to a “Change in Control” (as that term is defined in
the Change in Control Plan) and you shall not be entitled to any benefits under this paragraph
(unless the Change in Control Plan is terminated or is amended to provide less severance, a shorter
period of health coverage, or less favorable equity and deferred compensation vesting than is
specified herein, in which case you

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will receive the more favorable benefits under the terms hereof
in lieu of the benefits provided in the Change in Control Plan).

Death or Disability

In the event your employment terminates on account of death or Disability during the Term, in
addition to the Accrued Obligations you will be entitled to receive the following:

Accelerated Vesting. Your RSUs, Deferred Compensation Award and your time vested stock options
will vest in full upon your termination of employment. Options may be exercised in accordance with
the terms of the plan and award agreements.

Accrued Bonus. Any prior year (or prior quarter) accrued bonus that has been earned and certified
by the Compensation Committee but has not been paid.

Change in Control

If you continue to be employed by the Company upon the occurrence of a Change in Control, the RSUs
will become fully vested, the time vested options will become immediately exercisable, the Deferred
Compensation Award will become fully vested and immediately distributable and the performance based
options will vest if the per share consideration in the change in control is equal to or exceeds
the $25 or $35 vesting thresholds, without regard to any requirement that the closing price of the
stock equal or exceed the vesting thresholds for 30 consecutive trading days. If your employment
is terminated within 24 months after a Change in Control occurs, you will be entitled to the
Severance Pay described above, except the amount will be based on 36 months instead of 24 months
and the amount will be paid in a lump sum on the eighth day following the date you sign the waiver
and release of claims. Your Continuation Coverage also will be up to 36 months.

In the event that any payment, benefit or distribution to you by the Company, any of its
affiliates, or any person who acquires ownership or effective control of the Company or ownership
of a substantial portion of the Company’s assets (within the meaning of Section 280G of the Code
and the regulations thereunder) or any affiliate of such person, whether paid or payable, received
or receivable, or distributed or distributable pursuant to the terms of this Agreement or otherwise
(the “Total Payments”), is subject to the excise tax imposed by Section 4999 of the Code or any
similar successor provision or any interest or penalties with respect to such excise tax (such
excise tax, together with any such interest and penalties, are collectively referred to as the
“Excise Tax”), then you will be entitled to receive an additional payment (the “Gross-Up Payment”)
in an amount such that after payment of all taxes (including any interest or penalties imposed with
respect to such taxes), including any Excise Tax, imposed upon the Gross-Up Payment, you will
retain an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Total Payments
(not including the Gross-Up Payment). Notwithstanding the foregoing provisions, if it is
determined that you are entitled to the Gross-Up Payment, but that a reduction of the Total
payments by $50,000 or less would eliminate the Excise Tax, then no Gross-Up Payment shall be made
to you and the amounts payable under this Agreement shall be reduced so that the Excise Tax does
not apply.

All determinations as to whether any of the Total Payments are “parachute payments” (within the
meaning of Section 280G of the Code), whether a Gross-Up Payment is required, the amount of such
Gross-Up Payment and any amounts relevant to determination of whether a payment reduction should be
applied, shall be made by an independent accounting firm selected by the Company from among the
largest five accounting firms in the United States (the “Accounting Firm”). The Accounting Firm
shall provide its determination together with detailed supporting calculations, regarding the
amount of any Gross-Up Payment and any other relevant matter, both to the Company and to you,
within five days of the Termination Date, if applicable, or such earlier time as is requested by
the Company or by you (if you reasonably believe that any of the Total Payments may be subject to
the Excise Tax). Subject to the adjustments specified below, any determination by the Accounting
Firm shall be binding upon the Company and you. As a result of uncertainty in the application of
Section

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4999 of the Code at the time of the initial determination by the Accounting Firm hereunder,
it may be determined that the Company should have made Gross-Up Payments (“Underpayment”), or that
Gross-Up Payments will have been made by the Company which should not have been made
(“Overpayments”). In either such event, the Accounting Firm shall determine the amount of the
Underpayment or Overpayment that has occurred. In the case of an
Underpayment, the amount of such Underpayment shall be promptly paid by the Company to or for your
benefit. In the case of an Overpayment, you shall, at the direction and expense of the Company,
take such steps as are reasonably necessary (including the filing of returns and claims for
refund), follow reasonable instructions from, and procedures established by, the Company, and
otherwise reasonably cooperate with the Company to correct such Overpayment. The Company shall be
responsible for the costs of the Accounting Firm hereunder. You and the Company shall each
reasonably cooperate with the other in connection with any administrative or judicial proceedings
concerning the existence or amount of liability for Excise Tax with respect to the Total Payments.

Executive Programs

As an officer of the Company you may also be eligible to participate in the following currently
offered executive programs. The plans highlighted here are detailed in plan documents. Please
refer to those documents for more information. Nothing said here is intended to alter their
meaning and in the event of any conflict the terms of the legal plan documents control. The
Company reserves the right to amend or terminate the plans at any time.

Change-in-Control Plan: protects the financial interests of our key executives. The plan
provides three times your annual salary and bonus as well as benefit protection in the event
of a change-in-control.

Deferred Compensation: provides an opportunity to accumulate capital by investing pretax
dollars for distribution at a future date. You can defer a portion of your cash compensation
as well as restricted stock unit awards on a pre-tax basis.

Additional Executive Programs

Executive Life Insurance Plan: provides term life insurance with a death benefit equal to
four times annual base salary up to $1,000,000 of coverage. An additional $500,000 is
available upon evidence of insurability. The Company pays the full cost of the program.

Annual Executive Allowance: provides an executive allowance of $20,000. The Annual Executive
Perquisite Allowance is paid in equal installments over 26 pay periods. Your Annual
Executive Perquisite Allowance will be pro-rated for the number of pay periods remaining in
the year. It will be renewed annually.

Section 409A Deferral Restrictions

Notwithstanding anything to the contrary contained herein, in the event that any payment,
compensation or other benefit provided upon your termination of employment is determined, in whole
or in part, to constitute “nonqualified deferred compensation” within the meaning of Section 409A
of the Code, and you are a specified employee as defined in Section 409A(2)(B)(i) of the Code, such
payments will not be paid upon a separation from service before the day that is six months plus one
day after your termination date (the “New Payment Date”). Notwithstanding the foregoing, the
amount of any separation pay due to you hereunder shall not be considered “nonqualified deferred
compensation” that must be deferred until the New Payment Date to the extent that it (1) is payable
only upon an “involuntary separation from service” as defined in Treasury Regulation Section

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1.409A-1(n), (2) does not exceed the dollar limit set forth in Treasury Regulation Section
1.409A-1(b)(9)(iii)(A) for the year in which your termination of employment occurs, and (3) is
required by this Agreement to be paid within the permissible period for such amount set forth in
Treasury Regulation Section 1.409A-1(b)(9)(iii)(B). The aggregate of any payments that otherwise
would have been paid to you during the period between the date of your termination of employment
and the New Payment Date, but cannot be paid due to the operation of Section 409A(2)(B)(i) of the
Code, will be paid to you in a lump sum on the New Payment Date. Thereafter, any payments that
remain outstanding as of the day immediately following the New Payment Date shall be paid without
delay over time period originally scheduled, in accordance with the terms of this Agreement.

You and the Company acknowledge and agree that the interpretation of Section 409A of Code and its
application to the terms of this Agreement are uncertain and may be subject to change as additional
guidance and interpretations become available. Anything to the contrary herein notwithstanding,
all benefits or payments provided by the Company to you that would be deemed to constitute
“nonqualified deferred compensation” within the meaning of Section 409A of the Code are intended to
comply with Section 409A and, in the event that any such benefit or payment is deemed to not comply
with Section 409A, the Company and the Executive agree to cooperate in good faith, including, if
available, to renegotiate any such benefit or payment so that either (i) Section 409A will not
apply or (ii) compliance with Section 409A will be achieved.

Restrictive Covenants

Preservation of Confidential Information. During the Term, you will have access to and become
acquainted with trade secrets and other confidential information which are the exclusive property
of the Company and its affiliates. In light of the sensitive and proprietary nature of the
Confidential Information, you agree that at no time during or after your employment with the
Company will you (i) use Confidential Information (as defined below) for any purpose other than
during such employment as directed by the Company or (ii) disclose Confidential Information to any
person or entity other than the Company or persons or entities to whom disclosure has been
authorized by the Company in writing (except that you may disclose such information to the minimum
extent necessary to comply with governmental or judicial process, so long as you promptly notify
the Company of such pending disclosure and consult with the Company concerning the advisability of
seeking a protective order or other means of preserving the confidentiality of the Confidential
Information). As used herein, “Confidential Information” means all information of a technical or
business nature relating to the Company, including without limitation trade secrets, inventions,
drawings, file data, documentation, diagrams, specifications, know-how, processes, formulas,
models, test results, marketing techniques and materials, marketing and development plans, price
lists, pricing policies, business plans, information relating to customer or supplier identities,
characteristics and agreements, financial information and projections, flow charts, software in
various stages of development, source codes, object codes, research and development procedures and
employee files and information, including any formula, compilation, program, device, method,
technique, or process that derives independent economic value, actual or potential, from not being
generally known to, and not being readily ascertainable by proper means, by other persons who can
obtain economic value, actual or potential, from its disclosure or use; provided, however, that
“Confidential Information” shall not include any information that has become public knowledge
through no fault of yours. You also agree not to disclose any confidential or proprietary
information that the Company obtains from a third party and which the Company treats as
confidential or proprietary or designates as confidential, whether or not such information is owned
or developed by the Company. All Confidential Information, regardless of form, is the exclusive
property of the Company. This confidentiality covenant has no temporal, geographical or
territorial restriction.

Covenant Not to Solicit or Hire. For so long as you are Employed by the Company and for 24 months
thereafter, you agree not to hire, solicit or cause to be solicited for employment by any third
party, any person who is as of the date of such solicitation or who was within the 12-month period
prior to the date of such solicitation an exempt, supervisory or management employee of the Company
or any subsidiary or affiliate of the Company or to induce any such employee to terminate his or
her employment with the Company or to interfere in a similar manner with the business of the
Company.

9

 

Noncompetition. During the Term, and for a period of 24 months thereafter, you agree that you will
refrain from and will not, directly or indirectly, as an individual, partner, member, officer,
director, stockholder, employee, advisor, independent contractor, joint venturer, consultant,
agent, representative, salesman or otherwise, enter into, engage in, be employed by or be engaged
as an independent contractor by any of the following competitors in the direct or catalog retail
business that operates stores in the United States and generates at least 20 percent of overall
earnings from United States-based operations (each a “Competitor”):

	 	 	 	 	 
	 

	 	The Gap, Inc.,
	 	Coldwater Creek, Inc.
	 

	 	Banana Republic
	 	J. Crew Group, Inc.
	 

	 	American Eagle Outfitters, Inc.
	 	Urban Outfitters, Inc.
	 

	 	Abercrombie & Fitch Co.
	 	L.L. Bean, Inc.
	 

	 	Chico’s FAS, Inc.
	 	Land’s End, Inc.

These restrictions shall not be violated by (i) the ownership of no more than one percent of the
outstanding securities of any company whose stock is traded on a national securities exchange or is
quoted as a national market security on an interdealer quotation system; or (ii) other outside
business investments that do not in any manner conflict with the services to be rendered to the
Company and that do not diminish or detract from your ability to render the required attention to
the business of the Company.

Injunctive Relief. Any violation of the restrictive covenants and provisions of this
Section would cause irreparable injury to the Company due to among other things your knowledge of
trade secrets and proprietary information or rights, and there is no adequate remedy at law for
such violation, the Company shall have the right in addition to any other remedies available, at
law or in equity, to seek to enjoin you in a court of equity from violating such provisions. With
respect to any proceeding commenced in the state or federal courts in Seattle, Washington, you
hereby waive any and all defenses you may have on the ground of lack of jurisdiction, forum non
conveniens, or competence of the court to grant an injunction or other equitable relief, and you
further agree to waive any requirement for a bond or undertaking. The foregoing sentence shall not
prohibit your removal of an action from state court to federal court to the extent you meet the
legal requirements for doing so. The existence of this right shall not preclude any other rights
and remedies at law or in equity which the Company may have.

Reliance on Ability to Perform Your Obligations

You acknowledge that the Company is entering into this Agreement in reliance on the fact that you
are not a party to any agreement containing a noncompetition provision or other covenant (i) that
will restrict the nature of any services or business which you are entitled to perform or conduct
for the Company under this Agreement, (ii) that will restrict the disclosure or use of any
information which directly or indirectly relates to the nature of the business of Company or the
services to be rendered by you under this Agreement, or (iii) that will operate to restrict or
impair your ability to enter into this Agreement or to perform your duties hereunder. In the event
that there is a final and binding legal determination that a noncompetition provision or other
restrictive covenant has the effect of materially limiting your ability to perform the duties,
services or business of the Company that are contemplated to be performed pursuant to this
Agreement (a “Limiting Determination”), the Company shall have the right to terminate this
Agreement upon three days’ written notice (a “Noncompetition Termination”). In the event of a
Noncompetition Termination: (x) your rights under this Agreement will be limited to the rights you
would have in the event of a termination for Misconduct; (y) you shall not be required to return
any compensation or other payments properly paid to you hereunder prior to the date of the
Noncompetition Termination, except that, if the Sign-On Bonus has been paid to you, you agree to
repay a pro rata portion of the Sign-On Bonus equal to $600,000 less (A) $600,000 multiplied by (B)
a fraction, the numerator of which is the number of days that you were
employed by the Company prior to the Noncompetition Termination and the denominator of which is
365; and (z) all other post-termination rights and obligations of the parties hereto shall be of no
further force and effect, except

10

 

that the parties hereto agree that the Resolution of Disputes
section and the Liability Insurance and Indemnification section shall continue to be valid and
binding. The Company’s right to cause a Noncompetition Termination shall be its sole remedy
against you in the event of a Limiting Determination.

Representations

Company Representations. Company represents and warrants to you that, as of the Effective Date,
all financial statements for each quarter and fiscal year beginning on or after January 1, 2006
fairly present in all material respects the financial condition of the Company in accordance with
generally accepted accounting principles in the United States as applied by the Company’s
independent auditors as of the applicable reporting dates, except as disclosed in the notes to such
financial statements. In addition, Company represents and warrants that it has obtained any
approvals that are necessary for the Company to enter into and implement this Agreement, that the
Compensation Committee of the Board has approved the compensation terms and authorized the equity
grants specified herein, and that such equity grants are permitted under the terms of the 2005
Plan.

Your Representation to the Company. You represent and warrant to the Company that you have
provided the Company with copies of all applicable agreements (or applicable portions thereof) that
purport to place limits on your activities or employment. You agree that you will not use or
disclose the confidential information, trade secrets or intellectual property of any prior employer
and you will not violate the applicable terms of any employee solicitation restrictions imposed on
you by any prior employer during your employment with the Company.

Successors and Assigns

This Agreement will be binding upon and will inure to the benefit of the Company, its successors
and assigns, and the Company will require any successor or assign to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that the Company would be required
to perform it if no such succession or assignment had taken place. The term “the Company” as used
herein will include any such successors and assigns to the Company’s business and/or assets. The
term “successors and assigns” as used herein will mean a corporation or other entity acquiring or
otherwise succeeding to, directly or indirectly, all or substantially all the assets and business
of the Company (including this Agreement) whether by operation of law or otherwise. This Agreement
will inure to the benefit of and be enforceable by your legal personal representative.

Liability Insurance and Indemnification

Insurance. To the extent that the Company maintains any errors and omissions or other liability
insurance covering officers and directors (“D&O Insurance”), you shall be covered under such policy
or policies in accordance with the terms thereof. Such D&O Insurance in effect as of the Effective
Date, is current, valid and in effect as of the date hereof and the Company is not aware of any
intention or reason on the part of the carrier or the Company to terminate the policy or of any
material default under the policy. However, nothing herein shall in any way require the Company to
continue to maintain any D&O Insurance; provided, that the Company shall provide to you notice of
any material modification (including a copy of such modification) or termination of D&O Insurance.
Following the termination of your employment, during any period that the Company continues to
maintain D&O Insurance, the Company will maintain D&O Insurance “tail coverage” applicable to your
acts or failures to act as an employee, officer, or board member for so long as applicable statutes
of limitations would permit claims against you.

Indemnification. In addition to any rights you may have under such D&O Insurance, applicable law,
or the articles of incorporation and bylaws of the Company and except as may be prohibited by
applicable law, the Company agrees to indemnify, defend, and hold you harmless from and against any
and all claims and/or liability arising from, as a result of, or in connection with your employment
by the Company or any outside appointments and offices held at the Company’s request. The Company

11

 

will enter into an Indemnification Agreement with you, in the same form as is currently provided to
all officers and directors of the Company, dated as of the date hereof.

Counterparts

This Agreement may be executed in several counterparts, each of which will be deemed an original
and all of which will constitute but one and the same instrument. An electronic facsimile of a
signature, when delivered by the signing party to the non-signing party, will have the same force
and effect as an original.

Definitions

Change in Control. For purposes of this Agreement, the term “Change in Control” shall have the
same meaning as that set forth in Section 2.8 of the Eddie Bauer Holdings, Inc. Senior Officer
Change in Control Compensation Benefits Plan, as adopted by the Board on or about November 3, 2005
as such definition may be amended from time to time.

Disability. For purposes of this Agreement, the term “Disability” shall mean any physical or
mental condition which, notwithstanding reasonable accommodation by the Company, prevents you from
satisfactory performance of your duties for the Company and which is expected to result in death or
to have lasted or be expected to last for a continuous period of not less than 180 days during any
period of 365 consecutive calendar days – provided that interim returns to work of less than 10
consecutive days in duration shall not be deemed to interfere with a determination of the
continuous period of inability to perform your duties. The determination of whether you have a
Disability shall be made by the Company or its delegate in good faith based on the advice of a
licensed physician. If a physical examination, medical reports and advice or other evidence is
required to enable such determination, you agree to submit to such examination by a physician
selected by Company and reasonably acceptable to you and shall consent to the transfer and
disclosure to the Company of such information. The Company agrees that all information disclosed
to it will be handled confidentially consistent with the requirements of the Americans with
Disabilities Act. If you withdraw or refuse to provide such consent, solely for the purposes of
this Agreement, there shall be a presumption of Disability upon which the Company may rely. The
Company shall provide you with 30 days’ written notice of Disability status.

Good Reason. You may terminate your employment hereunder for Good Reason by delivering to the
Company (i) a written notice identifying in reasonable detail the act or acts constituting Good
Reason (a “Preliminary Notice of Good Reason”), such notice to be given within 90 days of the your
learning of an act or acts or failure or failures to act constituting Good Reason, and (ii) not
earlier than 30 days from the delivery of such Preliminary Notice of Good Reason, a Notice of
Termination. For purposes of this Agreement, the term “Good Reason” shall mean, without your prior
written consent, one or more of the following reasons, if uncured by the Company within 30 days of
written notice from you to the Board: (i) any material breach by the Company of this Agreement,
including a breach of the Company’s financial representation that has a material adverse impact on
the Company, except any matter concerning which no member of the Board and no member of senior
management has any knowledge as of your start date; (ii) a material reduction in your duties,
title, responsibilities, authority or reporting relationship; (iii) a failure to nominate you as a
member of the Board; (iv) a reduction by the Company of your Base Salary or Annual Incentive Plan
Target Percentage, other than in connection with any across-the-board reduction of base salaries or
target percentages of substantially all senior executives of the Company provided such
across-the-board adjustment reduces your total compensation opportunity by not more than 10 percent
and continues for no more than one year; or (v) relocation of your principal place of employment
from the greater
Seattle, Washington area, without your consent. Subject to the preceding conditions, the
termination of employment for Good Reason must occur during a limited period of time that does not
exceed two years following the initial existence of one or more of the conditions constituting Good
Reason.

12

 

Misconduct. For purposes of this Agreement, “Misconduct” shall mean that you: (i) are convicted
of, or plead guilty or nolo contendere to any act of embezzlement or fraud against the Company, its
parent or any of its subsidiaries, any misdemeanor involving theft or moral turpitude or to any
felony; (ii) have committed any willful, intentional, purposeful, grossly negligent or malicious
act that constitutes gross misconduct or a fiduciary breach and has the effect of materially
injuring the business or reputation of the Company, its parent or any of its affiliates and any
divisions; (iii) materially breach this Agreement, including any restrictive covenants or any
representation you make to the Company; or (iv) any intentional or willful refusal or failure to
perform your material duties and obligations to the Company (other than any such failure resulting
from incapacity due to physical or mental illness) that, if capable of being cured, remains uncured
within 30 days of written notice from the Company to you detailing such Misconduct, and if such act
or omission is susceptible to cure, you will be provided a 30 day period to cure such act or
omission; provided, however, that under no circumstances will mere poor performance or failure to
meet your business goals and objectives be deemed Misconduct.

Resolution of Disputes

All disputes except equitable enforcement of restrictive covenants will be resolved by mandatory
binding arbitration to be conducted in the greater Seattle area in accordance with the American
Arbitration Association Commercial Arbitration Rules before a single arbitrator who is a currently
licensed lawyer with at least 10 years experience and may be selected under such rules. Each party
shall be responsible for their own attorneys fees and other fees and expenses of the arbitration
except that the Company shall be responsible for payment of the arbitrator’s fee. Notwithstanding
the foregoing, the arbitrator may make an award of attorneys fees and other fees and expenses to
the prevailing party.

Governing Law

Except where otherwise indicated, this Agreement shall be construed and enforced in accordance with
the laws of the State of Washington, without regard to its conflict of laws provisions that might
require the application of the substantive or procedural rules or law of any other jurisdiction.

Withholding Taxes

All payments hereunder will be subject to any and all applicable federal, state local and foreign
withholding taxes.

Please sign and return one copy of this Agreement to confirm your acceptance and understanding of
your compensation package.

Sincerely,

Eddie Bauer Holdings, Inc.

Eddie Bauer, Inc.

	 	 	 	 	 	 	 
	By

	 	/s/ William T. End
	 	June 8, 2007
	 	 
	 

	 	 
	 	 	 	 
	 

	 	William T. End, Chairman of the Board
	 	Date	 	 
	 
	 	 	 	 	 	 
	Accepted and agreed:	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Neil S. Fiske	 	June 12, 2007	 	 
	 	 	 	 	 
	Neil S. Fiske, an individual	 	Date	 	 

13exv10w21

 

Exhibit 10.21

CONFIDENTIAL

JOINT DEVELOPMENT AGREEMENT

     THIS JOINT DEVELOPMENT AGREEMENT (this “Agreement”), effective as of April 27, 2007
(the “Effective Date”), is made by and between St. Jude Medical, Atrial Fibrillation Division,
Inc., a Minnesota corporation with offices at 6500 Wedgwood Road, Maple Grove, MN 55311
(“SJM”), and Hansen Medical, Inc., a corporation organized under the laws of Delaware,
having its principal place of business at 380 North Bernardo Avenue, Mountain View, CA 94043
(“Hansen”). Each of SJM and Hansen may be referred to in this Agreement as
“Party,” and collectively as, the “Parties”.

RECITALS

     WHEREAS, SJM and its Affiliates are engaged in the design, development, manufacture, assembly,
importation, exportation, offering for sale, sale and distribution of medical devices and
accessories for such devices, including the EnSiteTM System for mapping and navigating
electrophysiology catheters in real time (as it may be improved or otherwise modified from time to
time, the “EnSite System”);

     WHEREAS, Hansen is engaged in the design, development, manufacture, assembly, importation,
exportation, offering for sale, sale and distribution of a robotic catheter control system known as
the SenseiTM System (together with the capital equipment and accessories necessary for use of the
Sensei System, but excluding transeptal kits, sheaths or catheters, as it may be improved or
otherwise modified from time to time, the “Sensei System”); and

     WHEREAS, SJM and Hansen desire to enter into an agreement by which they will work together to
make the EnSite System and the Sensei System fully compatible and to jointly develop such other
products as the Parties may mutually agree to develop from time to time (collectively, the
“Program Products”);

     NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree to the following terms, conditions, and obligations:

ARTICLE I

DEFINITIONS

     For purposes of this Agreement, the following terms, whether singular or plural, shall have
the following meanings:

     1.1 Affiliate. The term “Affiliate” means any person or entity at the time
directly or indirectly controlling or controlled by, or under direct or indirect common control
with a Party, during the term of this Agreement and only so long as such control exists. For
purposes of this definition, “control” means the power to direct the management and policies of
such person or

 

entity directly or indirectly, whether through ownership of voting or other equity securities, by
contract or otherwise, and shall include entities which become Affiliates after the Effective Date
of this Agreement.

     1.2 Business Day. The term “Business Day” means any day other than a Saturday,
Sunday, or other day on which most or all commercial banks are closed in New York, New York.

     1.3 Field of Use. The term “Field of Use” means the development, manufacture,
sale, distribution and servicing of medical devices, systems and accessories designed for the
diagnosis and/or treatment of ******.

     1.4 Co-Marketing Agreement. The term “Co-Marketing Agreement” means the
Co-Marketing Agreement between Hansen and SJM dated as of the Effective Date.

     1.5 Development Plan. The term “Development Plan” shall have the meaning
ascribed to such term in Section 2.1 below.

     1.6 Effective Date. The term “Effective Date” shall have the meaning ascribed
to such term in the Preamble above.

     1.7 EnSite System. The term “EnSite System” shall have the meaning ascribed to
such term in the Recitals above.

     1.8 FDA. The term “FDA” means the Food and Drug Administration of the United
States Department of Health and Human Services.

     1.9 FDA Approval. The term “FDA Approval” means clearance for marketing by the
FDA under Section 510(k) of the Act, 21 U.S.C. §360(k), and 21 C.F.R. Part 807, Subpart E, or FDA
premarket approval granted in accordance with 21 U.S.C. § 360e and 21 C.F.R. Part 814.

     1.10 Fully Integrated EnSite System. The term “Fully Integrated EnSite System”
means the EnSite System, made compatible with the Fully Integrated Sensei System in accordance with
the terms of this Agreement.

     1.11 Fully Integrated Sensei System. The term “Fully Integrated Sensei System”
means the Sensei System, made compatible with the Fully Integrated EnSite System in accordance with
the terms of this Agreement.

     1.12 Fully Integrated System. The term “Fully Integrated System” means a
computerized interventional electrophysiological system comprising one Fully Integrated EnSite
System and one Fully Integrated Sensei System.

     1.13 Hansen Independent IP. The term “Hansen Independent IP” shall have the
meaning ascribed to such term in Section 3.1.2 below.

     1.14 “Initial Development Plan.” The term “Initial Development Plan” shall
have the meaning ascribed to such term in Section 2.1.2 below.

Page 2 of 17

 

     1.15 Intellectual Property. The term “Intellectual Property” means any and all
intellectual property rights arising from or associated with the following, whether protected,
created or arising under the laws of the United States or any other jurisdiction: any patents,
patent applications, copyrights, trade secrets, technical information, designs, drawings,
processes, algorithms, procedures, formulae, test data, know-how, improvements, plans (engineering
or otherwise), or any other compilation of information whatsoever, whether or not in written form
and whether or not marked confidential, secret, or the like, which is not generally available to
the public.

     1.16 LC Sensei System. The term “LC Sensei System” shall have the meaning
ascribed to that term in Section 4.2.4 below.

     1.17 NDA. The term “NDA” means that certain Mutual Non-Disclosure Agreement
between the Parties dated as of May 8, 2006.

     1.18 Pre-Existing IP. The term “Pre-Existing IP” means all of the Intellectual
Property of a Party (whether owned by or licensed to such Party) in existence as of the Effective
Date, as evidenced by tangible records of such Party in possession of such Party prior to the
Effective Date.

     1.19 Program Development. The term “Program Development” means any
improvement, development or other Intellectual Property that is invented, conceived of and/or
reduced to practice by either Party in direct connection with carrying out its responsibilities
under any Development Plan.

     1.20 Program Products. The term “Program Products” shall have the meaning
ascribed to such term in the Recitals above.

     1.21 Sensei System. The term “Sensei System” shall have the meaning ascribed
to such term in the Recitals above.

     1.22 SJM Independent IP. The term “SJM Independent IP” shall have the meaning
ascribed to such term in Section 3.1.3 below.

     1.23 Term. The term “Term” has the meaning ascribed thereto in Section 9.1
below.

ARTICLE II

JOINT DEVELOPMENT PROJECTS

     2.1 Development Plans; Development of Initial Program Product.

          2.1.1 The joint development work to be performed by the Parties hereunder for each Program
Product shall be carried out pursuant to the terms of a written development plan that will be
jointly prepared and mutually agreed to by the Parties (each, a “Development Plan”). Each
Development Plan will include, among other things, responsibilities, major development milestones
and expected completion dates. For each Program Product that the Parties mutually agree to develop
hereunder, Hansen shall propose the initial draft of the Development Plan for

Page 3 of 17

 

consideration by the Parties. Each Party agrees to use commercially reasonable efforts to carry out
the responsibilities assigned to it in each Development Plan.

          2.1.2 SJM and Hansen agree to work together to develop the Fully Integrated System as the
initial Program Product hereunder, as described in the Initial Development Plan. The Parties agree
to use commercially reasonable efforts to prepare and complete the Development Plan for the initial
Program Product (the “Initial Development Plan”) in mutually agreed to form within ******** days
after the Effective Date. The Initial Development Plan, once prepared and agreed to by the
Parties, shall be attached as Exhibit A to this Agreement and made a part hereof.

     2.2 Hansen’s Responsibilities. Hansen shall be responsible for completing the
following activities in accordance with the Initial Development Plan (or, as applicable, any other
Development Plan) at Hansen’s sole cost and expense:

          2.2.1 Hansen shall make the Sensei System fully compatible with the EnSite System such that
the EnSite System is qualified and supported for use with the Sensei System, in accordance with the
specifications of the Initial Development Plan; Hansen shall perform verification and validation
testing relating to making such Sensei System fully compatible with the EnSite System.

          2.2.2 Except as otherwise mutually agreed by the Parties, Hansen shall be responsible for, and
shall pay for all its costs (including, without limitation, Hansen-preapproved direct and indirect
costs incurred by SJM related to approval of Hansen disposable products) associated with gaining
regulatory approvals for the Program Products and the technologies incorporated therein
(“Regulatory Approvals”), including, without limitation, the Fully Integrated System.
Unless otherwise agreed by the Parties in writing, Hansen shall own all such Regulatory Approvals.

          2.2.3 Hansen shall have the right to keep its guide catheter platform open to delivery of
catheters from any manufacturer. In addition, nothing herein shall require Hansen to modify its
guide catheter platform so that such platform no longer is capable of being used with catheters
provided by any catheter manufacturer. However, Hansen shall include SJM products in its standard
verification and validation processes (such SJM products provided to Hansen for such processes at
no cost to Hansen), subject to Hansen’s reasonable discretion.

          2.2.4 Hansen shall maintain compatibility between the current Sensei System and any upgraded
or new version thereof that is commercially released during the Term and the current EnSite System
and any upgraded or new versions thereof that are commercially released during the Term for a
period of at least ****** from the Effective Date, unless this Agreement is terminated earlier
subject to the terms of Sections 9.2.2,9.2.6, or 9.2.7.

          2.2.6 Hansen shall perform such other activities as the Parties may mutually agree in
connection with the development activities contemplated by this Agreement.

Page 4 of 17

 

     2.3 SJM Responsibilities. SJM shall be responsible for completing the following
activities in accordance with the Initial Development Plan (or, as applicable, any other
Development Plan) at SJM’s sole cost and expense (except as otherwise specified below):

          2.3.1 SJM shall develop and market an EnSite software module/upgrade that enables the EnSite
System to provide an interface to the Sensei System, in accordance with the specifications of the
Initial Development Plan.

          2.3.2 SJM shall provide Hansen with technical specifications of the EnSite System to enable
Hansen to develop the Sensei System so it can plug into the EnSite System to receive localization
and orientation information of catheters with electrodes when used with the EnSite System, in
accordance with the specifications of the Initial Development Plan.

          2.3.3 SJM shall provide mutually agreed upon engineering consulting services related to
Program Products, including support for verification and validation testing related to making the
Sensei System compatible with the EnSite System.

          2.3.4
SJM shall provide mutually agreed upon regulatory services in connection with Hansen obtaining Regulatory Approvals, as reasonably
requested by Hansen, subject to Hansen reimbursing SJM for Hansen-preapproved direct and indirect
costs incurred by SJM in connection with the provision of such regulatory services.

          2.3.6 SJM shall maintain compatibility between the current EnSite System and any upgraded or
new version thereof that is commercially released during the Term and the current Sensei System and
any upgraded or new version thereof that is commercially released during the Term for a period
******, unless this Agreement is terminated earlier subject to the terms of Sections 9.2.2, 9.2.6,
or 9.2.7.

          2.3.7 SJM shall provide, on loan, an EnSite System to Hansen for use in connection with the
performance of Hansen’s obligations under the Initial Development Plan. Unless otherwise agreed in
writing by the Parties, Hansen will promptly return the EnSite System to SJM, at Hansen’s expense,
in good working order, reasonable wear and tear excepted, upon the earlier to occur of the
completion of the Initial Development Plan or any termination of this Agreement.

          2.3.8 SJM shall perform such other activities as the Parties may mutually agree in connection
with the development activities contemplated by this Agreement.

     2.4 Joint Responsibilities. The Parties shall work toward including in the Initial
Development Plan mutually agreeable technical specifications on the information that will be
transferred as well as any communications interfaces and protocols.

     2.5 Project Coordinators. Within ten (10) business days after the Effective Date, each
Party will designate in a writing delivered to the other Party an individual who will serve as the
Project Coordinator (the “Project Coordinator”) for such Party and who will be the
principal point of contact for the Development Plans to be carried out hereunder. Either Party
may designate a different Project Coordinator for each Development Plan, and may change a Project
Coordinator from time to time by written notice to the other Party

Page 5 of 17

 

     2.6 Coordination Meetings. During the joint development activities contemplated
hereby, a coordination meeting will be held periodically (e.g., monthly or at such other interval
as the Parties may agree). The date and time for each such meeting shall be agreed to in advance by
the Project Coordinators.

     2.7 Reports. Hansen shall provide SJM with quarterly written reports describing its
progress under each Development Plan in such reasonable detail as SJM may request from time to
time.

     2.8 Non-Solicitation. Without the prior written consent of the other Party, neither
Party shall, during the Term and for twelve (12) months thereafter, either directly or indirectly,
hire or otherwise engage, or cause, aid or assist any other person or entity, including, without
limitation, its Affiliates, to hire or otherwise engage, any current or former employee of the
other Party or its Affiliates for a period of twelve (12) months after the termination of such
individual’s employment relationship with the other Party or its Affiliates. Notwithstanding the
foregoing, this Section 2.6 shall not prohibit a Party from soliciting, hiring or otherwise
engaging any employees or former employees of the other Party or its Affiliates who respond to
solicitations of employment contained in publications of general circulation.

ARTICLE III

INTELLECTUAL PROPERTY

     3.1 Ownership.

          3.1.1 Pre-Existing IP. Each Party shall retain all right, title and interest it holds
in such Party’s Pre-Existing IP.

          3.1.2 Hansen Independent IP. Hansen shall own all right, title and interest in any
Intellectual Property that Hansen hereafter develops or has developed independently of the
performance of its obligations hereunder (together with Hansen’s Pre-Existing IP, the “Hansen
Independent IP”).

          3.1.3 SJM Independent IP. SJM shall own all right, title and interest in any
Intellectual Property that SJM hereafter develops or has developed independently of the performance
of its obligations hereunder (together with SJM’s Pre-Existing IP, the “SJM Independent
IP”).

          3.1.4 Program Developments. The intellectual property rights in any Program
Development shall be allocated as provided below in this Section 3.1.4:

          3.1.4.1 SJM shall own all Intellectual Property rights arising from any Program
Development wherein SJM employees or contractors are the sole inventors (each, a
“SJM-Related Program Development”). Hansen shall own all Intellectual Property
rights arising from any Program Development wherein Hansen employees or contractors are the
sole inventors (each, a “Hansen-Related Program Development”). The Parties will
jointly-own the Intellectual Property rights arising from any Program Development that is
jointly invented by employees or contractors of both Parties (each, a “Jointly-Owned
Program Development”), with each Party having the unrestricted right to

Page 6 of 17

 

utilize or exploit or license any Intellectual Property rights arising from any Jointly-
Owned Program Development without any consent of or accounting to the other Party. For the
purposes of this paragraph 3.1.4.1, neither Party will be deemed a contractor of the other.
Inventorship of patentable inventions conceived or reduced to practice during the course of
the performance of activities pursuant to this Agreement shall be determined in accordance
with U.S. patent laws.

          3.1.4.2
Patent Prosecution. Each Party shall have the sole right to
control the process of preparing, filing, and prosecuting one or more patent applications,
and of maintaining one or more issued patents relating to any Program Development, the
intellectual property rights in which are solely owned by such Party; in the case of
Intellectual Property rights arising from Jointly-Owned Program Development, the Parties
shall use reasonable efforts to cooperate regarding patent application preparation, filing,
prosecution, abandonment, and enforcement of patents or other Intellectual Property rights.
Following execution of this Agreement, appropriate personnel from the Parties will meet to
establish appropriate guidelines for prosecution and enforcement of Intellectual Property
rights arising from Jointly-Owned Program Development.

          3.1.4.3 Cooperation. If a Party that owns the Intellectual Property in any
Program Development desires to seek patent protection with respect thereto (including,
without limitation, in connection with seeking to file a continuation in part patent
application with respect thereto), such other Party shall reasonably cooperate in
connection therewith, including, without limitation, by executing and delivering such
conveyance, assignment, assurance, power of attorney and other instruments or documents as
may be reasonably required by such Party and using commercially reasonable efforts to
procure any executed assignment or other instrument or document from any employee or
contractor of such other Party who is a co-inventor of such Program Development. The Party
requesting such assistance shall reimburse the other Party for all reasonable out-of-pocket
costs and expenses incurred by such other Party in providing such assistance.

     3.2 Cross-Licenses.

          3.2.1. Hansen IP. Hansen hereby grants to SJM during the Term a non-exclusive,
worldwide, fully-paid, royalty free right and license, with rights to sub-license, to use the
Hansen Independent IP and the Hansen-Related Program IP solely for the limited purpose of
fulfilling SJM’s development responsibilities under Article II, to the extent that such Hansen
Independent IP may be so licensed absent contravention of encumbrances of Hansen Independent IP
preexisting the Effective Date. Hansen warrants that it is not aware, as of the Effective Date, of
any encumbrances that would materially limit Hansen’s ability to provide the right and license
described in the Section 3.2.1, and Hansen agrees that it will provide SJM with prompt written
notice if Hansen becomes aware at any time during the Term of any such limiting encumbrance, and in
such case will use commercially reasonable efforts to obtain for SJM the right and license
described in this Section 3.2.1.

          3.2.2 SJM IP. SJM hereby grants to Hansen during the Term a non-exclusive, worldwide,
fully-paid, royalty free right and license to use the SJM Independent IP and the SJM-

Page 7 of 17

 

Related Program IP solely for the limited purpose of fulfilling Hansen’s development
responsibilities under Article II, including the right to sublicense for such limited purpose.
Hansen shall provide SJM with written notice of any such sublicense, which sublicense shall be
consistent with the terms and conditions of this Agreement, including, without limitation, this
Article III.

     3.4 Assignment of Rights. Each Party hereby assigns and agrees to assign to the other
Party all of such Party’s right, title and interest in and to any Intellectual Property in any
Program Development that is to be owned by the other Party in accordance with the allocation of
ownership of SJM-Related Program Developments and Hansen-Related Program Developments that is set
forth in Section 3.1.4.1. Each Party shall execute and deliver any and all assignments or other
documents necessary to effectuate such assignment of such Intellectual Property. Each Party hereby
assigns and agrees to assign to the other Party an undivided one-half interest in all of such
Party’s right, title and interest in and to any Jointly-Owned Program Development. Each Party shall
execute and deliver any and all assignments or other documents necessary to effectuate such
assignment of Program Developments to the other Party.

     3.5 Reservation of Rights. All rights of each Party that are not expressly granted in
this Agreement are reserved and retained by such Party. Except as expressly provided in this
Agreement, no rights are granted whatsoever, whether expressly or by implication or estoppel or
otherwise, by either Party to the other Party.

     3.6 Disclosure of Jointly-Owned Program Developments. Each Party shall disclose to the
other Party any and all Jointly-Owned Program Developments not already disclosed to the other
Party, which disclosure will occur at the next coordination meeting conducted pursuant to Section
2.6 and, in any event, within thirty (30) days after being conceived or reduced to practice.

ARTICLE IV

COLLABORATION OBLIGATIONS

     4.1 Except as set forth below in Section 4.2, Hansen shall not ******, unless terminated by
SJM under Sections 9.2.1, 9.2.5, 9.2.6, or 9.2.7 hereof, or unless terminated by Hansen under
Sections 9.2.2, 9.2.5, 9.2.6, or 9.2.7 hereof.

     4.2 Hansen may develop and offer for sale to its customers in the Field of Use a communication
capability strictly limited to ******

Page 8 of 17

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES; DISCLAIMER OF WARRANTIES; 

LIMITATION OF LIABILITY

     5.1 General. Each Party represents, warrants and covenants that it (i) has full power
and authority to enter into this Agreement and carry out the transactions contemplated hereby,
(ii) that all necessary corporate action has been duly taken by such party to authorize the
execution, delivery and performance by such Party of this Agreement and (iii) has not, and will
not, enter into any agreement with a third party that conflicts with such Party’s obligations
hereunder or the rights granted by such Party hereunder to the other Party.

     5.2 No Debarred Person. Each Party represents and warrants that it shall not knowingly
employ, contract with, or retain any person directly or indirectly in connection with the
development work contemplated hereby if such person is under investigation by the FDA for debarment
or is presently debarred by the FDA pursuant to the Generic Drug Enforcement Act of 1992, as
amended (21 U.S.C. § 301, et seq.). In addition, each Party represents and warrants that it will
not engage in any conduct or activity which could lead to any such debarment actions. If, during
the term of this Agreement, a Party becomes aware that it or any person employed or retained by it
to perform development work hereunder (i) has come under investigation by the FDA for a debarment
action, (ii) has been debarred, or (iii) has engaged in any conduct or activity that could lead to
debarment, such Party shall immediately notify the other Party.

     5.3 No Implied Obligation. Nothing contained in this Agreement shall be construed as:

     5.3.1 a warranty or representation by either Party as to the validity, enforceability
or scope of any class or type of Intellectual Property licensed hereunder;

     5.3.2 a warranty or representation that any manufacture, sale, lease, use or other
disposition of Products will be free from infringement, misappropriation or other violation
of any intellectual property rights other than the Intellectual Property licensed
hereunder, subject to the indemnity by Hansen in Section 6.2 and the indemnity by SJM in
Section 6.3;

     5.3.3 an agreement to bring or prosecute proceedings against third parties for
infringement or conferring any right to bring or prosecute proceedings against third
parties for infringement;

     5.3.4 conferring any right to use in advertising, publicity, or otherwise, any
trademark, trade name or names, or any contraction, abbreviation or simulation thereof, of
either Party; or

Page 9 of 17

 

     5.3.5 requiring any Party to defend any proceeding brought by a third party
challenging or concerning the validity of any Intellectual Property licensed under this
Agreement.

     5.4 Disclaimer of Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THIS ARTICLE V, EACH
PARTY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING,
WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NON-INFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES, OR ARISING FROM A
COURSE OF DEALING, USAGE OR TRADE PRACTICES. Without limiting the generality of the foregoing,
neither Party makes any warranty of any kind related to: (a) the success of the research conducted
by the Parties under the Agreement; or (b) the safety or usefulness for any purpose of the
technology or other materials or information it provides hereunder.

     5.5 Limitation of Liability. EXCEPT FOR BREACHES OF A PARTY’S OBLIGATIONS UNDER
ARTICLE VII, NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL, CONSEQUENTIAL,
INCIDENTAL, INDIRECT OR PUNITIVE DAMAGES OR COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES,
TECHNOLOGY, OR INTELLECTUAL PROPERTY ARISING OUT OF OR RELATED TO THIS AGREEMENT, HOWEVER CAUSED,
UNDER ANY THEORY OF LIABILITY, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.

ARTICLE VI

INDEMNIFICATION

     6.1 Survival of Representation and Warranties. The representations and warranties of
each of the Parties contained in this Agreement shall survive the Effective Date.

     6.2 Indemnification by Hansen. Subject to Section 6.4, Hansen shall indemnify and hold
harmless SJM and its Affiliates and their respective directors, officers employees and agents
(“SJM Indemnitees”) from and against any and all losses, liabilities, claims, damages or
expenses (including, without limitation, reasonable legal fees and expenses) to the extent
resulting or arising from or in connection with any claim, action or proceeding by a third party
brought against any SJM Indemnitee and based solely on any one or more of the following:

          6.2.1 An allegation that any SJM Indemnitee infringes or misappropriates any Intellectual
Property right of a third party, to the extent such allegation is based on the use or practice of
the Hansen Independent IP and/or the Hansen-Related Program IP within the scope of the license
granted in Section 3.2.1 and in performance of its obligations under this agreement;

          6.2.2 The negligence or willful misconduct of Hansen or its Affiliates or their respective
consultants or contractors in connection with their activities under this Agreement;

Page 10 of 17

 

          6.2.3 The breach of any of the covenants, agreements, warranties or representations made by
Hansen under this Agreement by Hansen or its Affiliates or their respective consultants or
contractors; or

          6.2.4 The violation of any applicable laws or regulations by Hansen or its Affiliates or their
respective consultants or contractors in connection with their activities under this Agreement.

     Notwithstanding the foregoing, Hansen shall only be obligated to so indemnify and hold the SJM
Indemnitees harmless to the extent that such claim, action or proceeding does not arise from the
negligence or willful misconduct of SJM or its Affiliates or their respective contractors or
employees.

     6.3 Indemnification by SJM. SJM shall indemnify and hold harmless Hansen and its
Affiliates and their respective directors, officers employees and agents (“Hansen Indemnitees”)
from and against any and all losses, liabilities, claims, damages or expenses (including, without
limitation, reasonable legal fees and expenses) suffered or incurred by any such Hansen Indemnitee
to the extent resulting or arising from or in connection with any claim, action or proceeding by a
third party brought against any Hansen Indemnitee based on any of the following:

          6.3.1 An allegation that any Hansen Indemnitee infringes or misappropriates any Intellectual
Property right of a third party, to the extent such allegation is based on the use or practice of
the SJM Independent IP and/or the SJM-Related Program IP within the scope of the license granted in
Section 3.2.2 and in performance of its obligations under this Agreement;

          6.3.2 The negligence or willful misconduct of SJM or its Affiliates or their respective
consultants or contractors in connection with their activities under this Agreement;

          6.3.3 The breach of any of the covenants, agreements, warranties or representations made by
Hansen under this Agreement by SJM or its Affiliates or their respective consultants or
contractors; or

          6.3.4 The violation of any applicable laws or regulations by SJM or its Affiliates or their
respective consultants or contractors in connection with their activities under this Agreement.

     Notwithstanding the foregoing, SJM shall only be obligated to so indemnify and hold the Hansen
Indemnitees harmless to the extent that such claim, action or proceeding does not arise from the
negligence or willful misconduct of Hansen or its Affiliates or their respective contractors or
employees.

     6.4 Procedures.

          6.4.1 In order for an indemnified party to be entitled to any indemnification provided for
under this Article VI in respect of, arising out of or involving a claim, action or proceeding made
by any person who is not a Party to this Agreement or an Affiliate thereof (a “Third-Party
Claim”), such indemnified party must notify the indemnifying party in writing, and

Page 11 of 17

 

in reasonable detail, of the Third-Party Claim as promptly as reasonably possible after receipt by
such indemnified party of written notice of the Third-Party Claim; provided,
however, that failure to give such notification shall not affect the indemnification
provided hereunder except to the extent the indemnifying party is actually prejudiced as a result
of such untimely notice. The indemnified party shall deliver to the indemnifying party, within five
(5) business days after the indemnified party’s receipt thereof, copies of all notices and
documents (including court papers) received by the indemnified party relating to the Third-Party
Claim.

          6.4.2 If a Third-Party Claim is made against an indemnified party, the indemnifying party
shall be entitled to participate in the defense thereof and, if it so chooses, it may assume the
defense thereof with counsel selected by the indemnifying party and reasonably satisfactory to the
indemnified party. Should the indemnifying party so elect to assume the defense of a Third-Party
Claim, the indemnifying party shall not be liable to the indemnified party for legal costs and
expenses subsequently incurred by the indemnified party in connection with the defense thereof. If
the indemnified party assumes such defense, the indemnified party shall have the right to
participate in the defense thereof and to employ counsel, at its own expense, separate from counsel
employed by the indemnifying party, it being understood that the indemnifying party shall control
such defense and settlement.. The Parties shall cooperate in the defense or prosecution of any
Third-Party Claim. Such cooperation shall include the retention and the provision of records and
information that are reasonably relevant to such Third-Party Claim.

ARTICLE VII

CONFIDENTIALITY AND PUBLICITY

     7.1 Confidentiality. The Parties hereto will keep confidential any non-public
information (whether written or oral and whether or not identified as “Confidential”) exchanged by
the Parties (whether prior to, on or after the date hereof) in connection with the matters
contemplated by this Agreement, as well as the existence and terms of this Agreement and the
existence of the Parties’ discussions and collaboration hereunder, strictly in accordance with the
terms of the NDA, and will use such information solely in the performance of their obligations, and
the exercise of their rights, provided hereunder. The NDA shall expressly survive any termination
of this Agreement in accordance with its terms.

     7.2 Publicity. Neither Party, nor any of its Affiliates or representatives, may
initiate nor make any public announcement (by press release, press interview or otherwise) or other
disclosure concerning the existence, terms and conditions, or subject matter of this Agreement to
any third party without the prior written consent of the other Party, except as may be required by
law or regulation. In those circumstances where a Party believes that any such disclosure is
required by law or regulation, then it shall (i) seek to notify the other Party on a timely basis
in advance of such disclosure, and (b) use its best efforts to seek confidential treatment of the
material provisions of this Agreement to the greatest extent permitted by law or regulation.

ARTICLE VIII

INTENTIONALLY OMITTED

Page 12 of 17

 

ARTICLE IX

TERM AND TERMINATION

     9.1 Term. This Agreement shall become effective on the Effective Date and, subject to
Section 9.2, shall continue in effect until the completion of all of the development work
contemplated by the Initial Development Plan and any other Development Plan on which the Parties
agree prior to termination of this Agreement, subject to early termination of this Agreement (the
“Term”).

     9.2 Termination.

          9.2.1 Either Party may terminate this Agreement ****** by giving not less than ****** prior
written notice to the other Party.

          9.2.2 Either Party may terminate this Agreement immediately upon written notice to the other
Party, if the other Party materially breaches any of its obligations set forth in this Agreement
and fails to cure such breach within ********** after receiving written notice from the
non-breaching Party describing such breach.

          9.2.5 Either Party may terminate this Agreement immediately upon written notice to the other
Party if the Co-Marketing Agreement terminates.

          9.2.6 Either Party may terminate this Agreement upon written notice to the other Party should
either Party be enjoined by a court of competent jurisdiction from making, using, or selling the
Sensei System, the EnSite System, the Fully Integrated Sensei System, the Fully Integrated EnSite
System, the Fully Integrated System, or material portions thereof.

          9.2.7 Either Party may terminate this Agreement upon written notice to the other Party should
******

     9.3 Survival. This Section 9.3, Section 2.2.4, Section 2.3.6, and Articles III (other
than Section 3.2), V, VI, VII, VIII, and X shall survive any termination or the expiration of the
Term of this Agreement.

ARTICLE X

GENERAL

     10.1 Notices. All notices, requests, demands required or desired, or instructions to
be given hereunder shall be in writing and considered effective when delivered personally, upon

Page 13 of 17

 

receipt if sent by certified mail or by delivery via Federal Express or similarly recognized
overnight courier with all postage or freight charges prepaid, and addressed as follows:

	 	(1)	 	If to Hansen:

Hansen Medical, Inc.

380 North Bernardo Avenue

Mountain View, CA

Attn: Chief Executive Officer

	 	(2)	 	If to SJM:

St. Jude Medical, Atrial Fibrillation Division, Inc.

14901 DeVeau Place

Minnetonka, MN 55345

Facsimile: 952-351-1777

Attention: General Counsel

and

St. Jude Medical, Atrial Fibrillation Division, Inc.

6500 Wedgwood Road

Maple Grove, MN 55311

Facsimile: 763-383-2600

Attention: President

with a copy to (which shall not constitute notice):

St. Jude Medical, Inc.

One Lillehei Plaza

St. Paul, MN 55117

Facsimile: 651-490-4333

Attn: Chief Financial Officer

     10.2 Entire Agreement. This Agreement (including any exhibits and schedules attached
or to be attached hereto which are incorporated herein by this reference), together with the NDA,
represent the entire understanding of the Parties with respect to the subject matter hereof. This
Agreement supersedes all prior agreements, representations and understandings, whether written or
oral, between the Parties concerning the subject matter hereof, and may not be changed or modified
in any manner except by an instrument in writing that is signed by the Parties. No inference shall
be drawn from any variance between this Agreement and any prior negotiations, term sheets, letters
of intent relating to, or drafts of, this Agreement. Each Party acknowledges and agrees that no
representations, inducements, promises, commitments or agreements, orally or otherwise, have been
made by any Party, or anyone acting on behalf of any Party, which are not expressed herein.

Page 14 of 17

 

     10.3 Modification. No alteration, amendment, waiver, cancellation or any other change
in any term of condition of this Agreement shall be valid or binding on any Party unless such
alteration, amendment, waiver, cancellation or any other change shall have been mutually agreed to
in writing by the Parties to this Agreement.

     10.4 Severability. The Parties agree that if any provision of this Agreement shall be
found or held to be invalid or unenforceable, then the provisions of this Agreement shall be deemed
amended to modify or delete, as necessary, the offending provision, and this Agreement as so
amended or modified shall not be rendered unenforceable or impaired but shall remain in full force
and effect, to the fullest extent possible in keeping with the intention of the Parties.

     10.5 No Waiver. Failure of any Party at any time to require performance of any
provision of this Agreement shall not affect the right of any party to require full performance
thereafter; a waiver by any Party of a breach of any provision of this Agreement shall not be taken
or held to be a waiver of any further or similar breach or as nullifying the effectiveness of such
provision.

     10.6 Costs. Except as otherwise herein provided, each of the Parties hereto shall bear
its own expenses in connection with this Agreement and the transactions contemplated herein.

     10.7 Assignment. This Agreement shall be binding upon, and shall inure to the benefit
of, the Parties to this Agreement and their respective successors and assigns. No Party may assign
any of its rights or privileges or (except to subcontractors or consultants under commercially
reasonable written agreements) delegate any of its duties or obligations (by operation of law or
otherwise) hereunder without prior written consent of the other Party; provided,
however, that either Party may make such an assignment or delegation when done so in
conjunction with (a) the acquisition of the Party or of all or substantially all of the Party’s
assets relating to this Agreement or (b) a corporate restructuring or reorganization in which such
Party assigns its right, title and interest under this Agreement to an Affiliate. Any attempted or
purported assignment or transfer without such consent, when required under this provision, shall be
void and of no effect and shall constitute a material breach of this Agreement.

     10.8 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York, without regard to the conflict of laws provisions thereof.

     10.9 Relationship of the Parties. The Parties hereto are independent contractors under
this Agreement. Nothing contained herein is intended nor is to be construed so as to constitute
the Parties hereto as partners or participants in a joint venture with respect to this Agreement,
or the subject matter hereof. Employees and agents of one Party remain employees or agents of
that Party and shall not be considered at any time to be agents of, or obligated to render a
fiduciary duty to, the other Party. There is no principal-agent relationship between the Parties.
Neither Party shall have the authority to contract, bind, or act on behalf of the other Party.

Page 15 of 17

 

     10.10 Drafting of this Agreement. Each Party has equally participated in the drafting
of this Agreement, and the Parties agree that neither Party shall be found to be the sole or
primary drafter of any portion of this Agreement.

     10.11 Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original, but all of which taken together shall constitute one and the same
instrument.

     IN WITNESS WHEREOF, authorized representatives of the parties have executed this Agreement as
of the dates written below.

	 	 	 	 	 	 	 
	HANSEN MEDICAL INC.	 	ST. JUDE MEDICAL, ATRIAL

FIBRILLATION DIVISION, INC.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Gary Restani
	 	By:
	 	/s/ Jane J. Song
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	Gary Restani
	 	Name:
	 	Jane J. Song
	 
	 	 	 	 	 	 
	Title:

	 	President and Chief Operating Officer
	 	 Title:
	 	President, St. Jude Medical, Atrial
	 

	 		 	 	 	Fibrillation Division, Inc.

Page 16 of 17

 

EXHIBIT A

Initial Development Plan

********************************************************

Page 17 of 17

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