Document:

Executive Employment Agreement

 EXHIBIT 10.3 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 This Executive Employment Agreement (the
“Agreement”) is made effective as of January 1, 2009 (the “Effective Date”), by and between Northstar Neuroscience, Inc. (“Northstar” or the “Company”) and Brian Dow
(“Employee”). 
 The parties agree as follows: 
 1. Employment. Company hereby employs Employee, and Employee hereby accepts such employment, upon the terms and conditions set
forth herein. 
 2. Duties. 
 2.1 Position. Employee is employed as Vice President of Finance and Chief Financial Officer of the Company, reporting to the Chief
Executive Officer and the Northstar Board of Directors (the “Board”), and shall have such duties and responsibilities consistent with such position as may be reasonably assigned from time to time. 
 2.2 Best Efforts; Full-time. Employee shall faithfully and diligently perform all duties assigned to Employee. Employee will expend
Employee’s best efforts on behalf of Northstar, and will abide by all policies and decisions made by Northstar, as well as all applicable federal, state and local laws, regulations or ordinances. Employee will act in the best interests of
Northstar at all times. Employee shall devote Employee’s full business time and efforts to the performance of Employee’s assigned duties for Northstar, unless Employee notifies Northstar in advance of Employee’s intent to engage in
other paid work and receives Northstar’s express written consent to do so. 
 2.3 Work Location. Employee’s
principal place of work shall be located in Seattle, Washington, or such other location as the parties may agree from time to time. 
 3. Term. The term of this Agreement shall begin on the Effective Date and shall continue until it is terminated pursuant to Section 7 herein (the “Term”). 
 4. Compensation. 
 4.1 Base Salary. As compensation for Employee’s performance of Employee’s duties hereunder, and effective as of the Effective Date, Northstar shall pay to Employee a base salary approved by the
Compensation Committee of the Board of One Hundred Ninety-Two Thousand Dollars ($192,000), payable in accordance with Northstar’s normal payroll practices. 
 4.2 Bonus. Employee shall be entitled to the same cash or equity-based bonus opportunities as similarly-situated Northstar
executives. 

 4.3 Performance and Salary Review. Northstar may periodically review
Employee’s performance. Adjustments to salary or other compensation, if any, will be made by Northstar in its sole and absolute discretion. 
 4.4 Employment Taxes. All of Employee’s compensation shall be subject to customary withholding taxes and any other employment taxes as are commonly required to be collected or withheld by Northstar.

 5. Customary Fringe Benefits. Employee will be eligible for all customary and usual fringe benefits generally
available to senior executives of Northstar, subject to the terms and conditions of Northstar’s benefit plan documents. Northstar reserves the right to change or eliminate the fringe benefits on a prospective basis, at any time, effective upon
notice to Employee. 
 6. Business Expenses. Employee will be reimbursed for all reasonable, out-of-pocket business
expenses incurred in the performance of Employee’s duties on behalf of Northstar. To obtain reimbursement, expenses must be submitted promptly, with appropriate supporting documentation, in accordance with Northstar’s policies. 

7. Termination. 
 7.1 At-Will Employment. Either Employee or Northstar shall have the right to terminate the employment relationship at any time, with or without cause or advance notice. It is expressly understood that the
employment relationship is at-will, and nothing in this Agreement alters such at-will employment relationship. Any change to this at-will employment relationship must be by a separate, specific, written agreement signed by Employee and an authorized
representative of Northstar. 
 7.2 Termination for Cause by Northstar. Northstar may terminate Employee’s
employment immediately at any time for Cause, with or without advance notice. For purposes of this Agreement, “Cause” is defined as, in the good-faith discretion of the Board, any of the following, upon thirty (30) days’
written notice and opportunity to cure if such item is reasonably susceptible to cure: (a) acts or omissions constituting gross negligence, recklessness or willful misconduct on the part of Employee; (b) Employee’s material breach of
this Agreement or the Confidentiality, Inventions and Noncompetition Agreement between Northstar and Employee (the “Confidentiality Agreement”); (c) Employee’s conviction or entry of a plea of nolo contendere for
fraud, misappropriation or embezzlement, or any felony or crime of moral turpitude; (d) Employee’s willful or habitual neglect of duties; (e) Employee’s failure to perform the essential functions of Employee’s position, with
or without reasonable accommodation, due to a mental or physical disability; (f) sustained unsatisfactory performance; or (g) Employee’s death. In the event Employee’s employment is terminated in accordance with this
Section 7.2, Employee shall be entitled to receive only unpaid base salary at the rate then in effect and accrued and unused paid time off, each prorated to the date of termination, and Northstar shall have no further or other obligations to
Employee pursuant to this Agreement. 
  

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 7.3 Termination Without Cause or Resignation for Good Reason Prior to a Change in
Control. In the event that, prior to a Change in Control (as defined in the Northstar 2006 Performance Incentive Plan), Employee is terminated by Northstar other than for Cause or Employee resigns prior to a Change in Control as a result of
either: (i) a material adverse change in Employee’s duties and title without Employee’s consent, as measured against Employee’s title and duties immediately prior to such change; (ii) a material reduction (defined as at
least a 10% reduction during a twenty-four (24) month period) in Employee’s base salary without Employee’s written consent; or (iii) the office at which Employee is required to report is relocated by more than fifty
(50) miles from Northstar’s present location, without Employee’s consent (each, a “Good Reason”), Employee will receive Employee’s base salary then in effect and accrued and unused paid time off, each prorated to
the date of termination or resignation, and, subject to the second to last sentence of this Section 7.3: a severance payment equal to six (6) months of Employee’s base salary then in effect,(but in no event less than the greater of
$96,000 or 50% of Employee’s highest annualized base salary paid during the preceding 24 months) payable in full promptly following Employee’s execution of the release referenced in this Section 7.3 and the expiration of any
applicable revocation period; vesting of an additional twelve (12) months of Employee’s stock options from date of termination or resignation; any earned bonus for which Employee was eligible, prorated to the date of termination or
resignation to be paid out according to Northstar’s normal pay-out schedule after Northstar has determined whether a bonus is payable and, if so, the amount of such prorated bonus; and should Employee timely elect COBRA insurance continuation
coverage and remain eligible for such coverage, reimbursement at a rate equal to the amount contributed by Northstar for Employee’s insurance coverage premium effective as of the date of termination or resignation for twelve (12) months
following termination or resignation, upon proof of payment by Employee, provided, however, that, in addition to the foregoing and only in the case of a termination without Cause, Employee will receive full acceleration of all of the
then-unvested shares subject to stock options and other equity awards that were granted by Northstar to Employee between April 1, 2008 and January 15, 2009. Employee’s receipt of the severance, vesting and COBRA benefits set forth in
this Section 7.3 are subject to Employee: (a) complying with all surviving provisions of this Agreement as specified in Section 12.7 below; and (b) executing a full general release in a form acceptable to Northstar, releasing all
claims, known or unknown, that Employee may have against Northstar or its officers, directors, employees or agents arising out of or in any way related to Employee’s employment, termination or resignation of employment with Northstar and such
release becoming effective in accordance with its terms no later than ninety (90) days following such termination or resignation. For avoidance of doubt, Employee’s voluntary termination of employment other than for Good Reason will not
give rise to any rights under this Agreement. 
 7.4 Termination Without Cause or Resignation for Good Reason Following a
Change in Control. In the event that, within twelve (12) months following a Change in Control, Employee is terminated other than for Cause or Employee resigns for Good Reason, Employee will receive Employee’s base salary then in effect
and any unused paid time off, each prorated to the date of termination or resignation, and, subject to the last sentence of this Section 7.4,a severance payment equal to six (6) months of Employee’s base salary then in effect, (but in
no event less than the greater of $96,000 or 50% of Employee’s highest annualized base salary paid during the preceding 24 months), payable in full promptly 

  

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following Employee’s execution of the release referenced in this Section 7.4 and the expiration of any applicable revocation period; full
acceleration of all of the then-unvested shares subject to stock options held by the Employee; any earned bonus for which Employee was eligible, prorated to the date of termination or resignation to be paid out according to Northstar’s normal
pay-out schedule after Northstar has determined whether a bonus is payable and, if so, the amount of such prorated bonus; and should Employee timely elect COBRA insurance continuation coverage and remain eligible for such coverage, reimbursement at
a rate equal to the amount contributed by Northstar for Employee’s insurance coverage premium effective as of the date of termination or resignation for twelve (12) months following termination or resignation, upon proof of payment by
Employee. Employee’s receipt of the severance, vesting and COBRA benefits set forth in this Section 7.4 are subject to employee: (a) complying with all surviving provisions of this Agreement as specified in Section 12.7 below;
and (b) executing a full general release in a form acceptable to Northstar, releasing all claims, known or unknown, that Employee may have against Northstar or its officers, directors, employees or agents arising out of or any way related to
Employee’s employment, termination or resignation of employment with Northstar and such release becoming effective in accordance with its terms no later than ninety (90) days following such termination or resignation. 
 7.5 280G and 409A. If, due to the benefits provided under this Section 7, Employee is subject to any excise tax due to
characterization of any amounts payable under this Section 7 as excess parachute payments pursuant to Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), the gross amount payable in cash under this
Section 7 will be reduced (to the least extent possible) in order to avoid any “excess parachute payment” under Section 280G(b)(1) of the Code. This Agreement is intended to comply with, or otherwise be exempt from,
Section 409A of the Code and any regulations and Treasury guidance promulgated thereunder. The Company shall undertake to administer, interpret, and construe this Agreement in a manner that does not result in the imposition on Employee of any
additional tax, penalty, or interest under Section 409A of the Code. Northstar agrees to pay Employee an amount equal to 20 percent (20%) of any severance payment that is subject to the additional tax imposed by Section 409A of the
Code (excluding the payment described in this sentence) (the “Gross-Up Payment”). Northstar will make the Gross-Up Payment at the same time it makes the first severance payment hereunder. If requested by Employee, the parties shall
amend or modify this Agreement in order to comply with the provisions of Section 409A of the Code (including any amendment or replacement of such section), to the extent applicable. 
 For purposes of Section 409A of the Code, the right to a series of installment payments under this Agreement shall be treated as a right to a series
of separate payments. 
 With respect to any reimbursement of expenses of, or any provision of in-kind benefits to, Employee, as specified
under this Agreement, such reimbursement of expenses or provision of in-kind benefits shall be subject to the following conditions: (a) the expenses eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall
not affect the expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement providing for the reimbursement of expenses referred to in Section 105(b)
of the Code; (b) the reimbursement of an eligible expense shall be made no later than the end of the year after the year in which such expense was incurred; and (c) the right to reimbursement or in-kind benefits shall not be subject to
liquidation or exchange for another benefit. 
  

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 “Termination of employment,” “resignation,” or words of similar import, as used in
this Agreement means, for purposes of any payments under this Agreement that are payments of deferred compensation subject to Section 409A of the Code, the Employee’s “separation from service” as defined in Section 409A of
the Code. 
 If a payment obligation under this Agreement arises on account of the Employee’s separation from service while the Employee
is a “specified employee” (as defined under Section 409A of the Code and determined in good faith by the Company), any payment of “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1),
after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)), that is scheduled to be paid within six (6) months after such separation from service shall accrue without interest and shall be paid within
fifteen (15) days after the end of the six-month period beginning on the date of such separation from service or, if earlier, within fifteen (15) days after the appointment of the personal representative or executor of the Employee’s
estate following his death. 
 8. Confidentiality. Employee agrees to read, sign and abide by Company’s
Confidentiality, Inventions and Noncompetition Agreement, which is provided with this Agreement and incorporated herein by reference. 
 9. No Conflict of Interest. During the term of Employee’s employment with Northstar and during any period Employee is receiving payments from Northstar, Employee must not engage in any work, paid or
unpaid, that creates an actual or potential conflict of interest with Northstar, as may be determined in good faith by Northstar in its sole and absolute discretion. If Northstar believes such a conflict exists during the term of this Agreement,
Northstar may ask Employee to choose to discontinue the other work or resign employment with Northstar. If Northstar believes such a conflict exists during any period in which Employee is receiving payments pursuant to this Agreement, Northstar may
ask Employee to choose to discontinue the other work or forfeit the remaining severance and other payments under this Agreement. In addition, Employee agrees not to refer any client or potential client of Northstar to competitors of Northstar,
without obtaining Northstar’s prior written consent, during the term of Employee’s employment and during any period in which Employee is receiving payments from Northstar pursuant to this Agreement. 
 10. Mutual Non-Disparagement. Employee will not, during the term of this Agreement or after the termination hereof, disparage
Northstar, its products, services, agents or employees. Northstar’s officers and directors will not, during the term of this Agreement or after the termination hereof, disparage Employee. 
 11. Injunctive Relief. Employee acknowledges that Employee’s breach of the covenants contained in Sections 2.2 and 8 through
10 (collectively “Covenants”) would cause irreparable injury to Northstar and agrees that in the event of any such breach, Northstar shall be entitled to seek temporary, preliminary and permanent injunctive relief without the
necessity of proving actual damages or posting any bond or other security. 
  

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 12. General Provisions. 
 12.1 Successors and Assigns. The rights and obligations of Northstar under this Agreement shall inure to the benefit of and shall
be binding upon the successors and assigns of Northstar. Employee shall not be entitled to assign any of Employee’s rights or obligations under this Agreement. 
 12.2 Waiver. Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver
of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Agreement. 
 12.3 Attorneys’ Fees. Each side will bear its own attorneys’ fees in any dispute unless a statute at issue, if any, authorizes the award of attorneys’ fees to the prevailing party. 
 12.4 Severability. In the event any provision of this Agreement is found to be unenforceable by an arbitrator or court of competent
jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by
law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby.

 12.5 Interpretation; Construction. The headings set forth in this Agreement are for convenience only and shall not
be used in interpreting this Agreement. Employee Acknowledges that Employee has had an opportunity to review and revise the Agreement and have it reviewed by legal counsel, if desired, and, therefore, any rule of construction to the effect that
ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. 
 12.6 Governing Law. The parties agree that this Agreement, and any disputes arising under this Agreement, will be governed by and construed in accordance with the laws of the state of Washington, without giving effect to any conflict
of laws principle to the contrary. The parties agree that venue for any dispute arising under this Agreement will lie exclusively in the state or federal courts located in King County, Washington, and the parties irrevocably waive any right to raise
forum non conveniens or any other argument that Washington is not the proper venue. The parties irrevocably consent to personal jurisdiction in the state and federal courts of the state of Washington. 
 12.7 Survival. Sections 7 (“Termination”), 8 (“Confidentiality”), 9 (“No Conflict of Interest”), 10
(“Mutual Non-Disparagement”), 11 (“Injunctive Relief”), 12 (“General Provisions”) and 13 (“Entire Agreement”) of this Agreement shall survive Employee’s employment by Northstar. 
  

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 13. Entire Agreement. This Agreement, including the Confidentiality Agreement
incorporated herein by reference, the Restricted Stock Grant Agreement, the 2006 Plan, the Northstar 1999 Stock Option Plan and related option documents in place at the time of this signing, constitutes the entire agreement between the parties
relating to this subject matter and supersedes all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral, including the Severance Program for Director Level Employees (July 2008) dated
July 28, 2008 (except that the 2008 revised bonus target total of $18,000 referenced therein shall survive). This Agreement may be amended or modified only by a supplemental written agreement signed by Employee and an authorized representative
of Northstar. No oral waiver, amendment or modification will be effective under any circumstances whatsoever. 
 THE PARTIES TO THIS AGREEMENT HAVE READ THE
FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW. 
  

									
		 	Brian Dow
		
	Dated: December 4, 2008	 	/s/ Brian B. Dow
			
		 		 	NORTHSTAR NEUROSCIENCE, INC.
	Dated: December 4, 2008	 		 	
		 	By:	 	/s/ John S. Bowers Jr.
		 	Name:	 	John S. Bowers Jr.
		 	Title:	 	President and Chief Executive Officer
			
		 	Address:	 	 2401 Fourth Avenue, Suite 300
 Seattle,
Washington 98121

  

 7Indemnification Agreement

 EXHIBIT 10.4 
 NORTHSTAR NEUROSCIENCE, INC. 
 INDEMNIFICATION AGREEMENT 
 This Indemnification Agreement (the “Agreement”) is entered into on January 1, 2009, between Northstar Neuroscience, Inc., a
Washington corporation (the “Company”), and Brian Dow, an officer of the Company and/or one or more of its subsidiaries (“Indemnitee”), for good and valuable consideration as set forth below. 
 RECITALS 
 A. The Company recognizes
the importance, and increasing difficulty, of obtaining adequate liability insurance coverage for its directors, officers, employees, agents and fiduciaries. 
 B. The Company further recognizes that, at the same time as the availability and coverage of such insurance has become more limited, litigation against corporate directors, officers, employees, agents and fiduciaries
has continued to increase. 
 C. Article 5 of the Company’s Amended and Restated Articles of Incorporation (the
“Articles”) provides for indemnification of the Company’s directors and officers to the full extent authorized by the Washington Business Corporation Act (the “Statute”), and that such provisions are not
exclusive and may be supplemented by agreements between the Company and its officers and directors. 
 D. The Company desires to retain and
attract the services of highly qualified individuals, such as Indemnitee, to serve the Company and, in that connection, also desires to provide contractually for indemnification of, and advancement of expenses to, Indemnitee to the full extent
authorized by law. 
 AGREEMENT 
 1. Indemnification. 
 a. Scope. The Company agrees to hold harmless and indemnify Indemnitee against
any Damages (as defined in Section 1(c)) incurred by Indemnitee with respect to any Proceeding (as defined in Section 1(d)) to which Indemnitee is or is threatened to be made a party or in which Indemnitee is otherwise involved (including,
but not limited to, as a witness), to the full extent authorized by law, without regard to the limitations in RCW 23B.08.510 through 23B.08.550, and 23B.08.560(2), except that Indemnitee shall have no right to indemnification on account of:
(i) acts or omissions of Indemnitee that have been finally adjudged (by a court having proper jurisdiction, and after all rights of appeal have been exhausted or lapsed, herein “Finally Adjudged”) to be intentional misconduct
or a knowing violation of law; (ii) conduct of Indemnitee that has been Finally Adjudged to be in violation of RCW 23B.08.310; (iii) any transaction with respect to which it has been Finally Adjudged that 

 
Indemnitee personally received a benefit in money, property or services to which Indemnitee was not legally entitled; or (iv) any suit in which it is
Finally Adjudged that Indemnitee is liable for an accounting of profits made from the purchase or sale by Indemnitee of securities of the Company in violation of the provisions of Section 16(b) of the Securities Exchange Act of 1934 and
amendments thereto. 
 b. Changes to Indemnification Right. Indemnitee’s right to be indemnified to the full
extent authorized by law shall include the benefits of any change, after the date of this Agreement, in the Statute or other applicable law regarding the right of a Washington corporation to indemnify directors or officers, to the extent that it
would expand Indemnitee’s rights hereunder. Any such change that would narrow or interfere with Indemnitee’s rights hereunder shall not apply to, limit, or affect the interpretation of, this Agreement, unless and then only to the extent
that it has been Finally Adjudged that its application hereto does not constitute an unconstitutional impairment of Indemnitee’s contract rights or otherwise violate applicable law. 
 c. Indemnified Amounts. If Indemnitee is or is threatened to be made a party to, or is otherwise involved (including, but not
limited to, as a witness) in, any Proceeding, the Company shall hold harmless and indemnify Indemnitee from and against any and all losses, claims, damages, costs, expenses and liabilities incurred in connection with investigating, defending, being
a witness in, participating in or otherwise being involved in (including on appeal), or preparing to defend, be a witness in, participate in or otherwise be involved in (including on appeal), such Proceeding, including but not limited to
attorneys’ fees, judgments, fines, penalties, ERISA excise taxes, amounts paid in settlement, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments pursuant to this
Agreement, and other expenses (collectively, “Damages”), including all interest, assessments or charges paid or payable in connection with or in respect of such Damages. 
 d. Definition of Proceeding. For purposes of this Agreement, “Proceeding” shall mean any actual, pending,
threatened or completed action, suit, claim, investigation, hearing or proceeding (whether civil, criminal, administrative or investigative, and whether formal or informal) in which Indemnitee is, has been or becomes involved, or regarding which
Indemnitee is threatened to be made a named defendant or respondent, based in whole or in part on or arising out of the fact that Indemnitee is or was a director, officer, member of a board committee, employee or agent of the Company and/or any of
its subsidiaries or that, being or having been such a director, officer, member of a board committee, employee or agent, Indemnitee is or was serving at the request of the Company as a director, officer, partner, employee, trustee or agent of
another corporation or of a foreign or domestic corporation, partnership, joint venture, trust, employee benefit plan or other enterprise (each, a “Related Company”), whether the basis of such action, suit, claim, investigation,
hearing or proceeding is alleged action or omission by Indemnitee in an official capacity as a director, officer, committee member, partner, employee, trustee or agent or in any other capacity while serving as a director, officer, committee member,
partner, employee, trustee or agent. “Proceeding” shall not, however, include any action, suit, claim, investigation, hearing or proceeding instituted by or at the direction of Indemnitee unless pursuant to an Enforcement Action (as
defined in Section 3(a)) or its institution has been authorized by the Company’s Board of Directors (the “Board”). 
  

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 e. Notifications. 
 i. Promptly after receipt by Indemnitee of notice of the commencement (including a threatened assertion or commencement) of any
Proceeding, Indemnitee will, if it is reasonably foreseeable that a claim in respect thereof will be made against the Company under this Agreement, notify the Chair of the Board’s Audit Committee of the commencement thereof (which notice shall
be in the form of Exhibit A hereto) (the “Indemnification Notice”). A failure to notify the Company in accordance with this subsection (e)(i) will not, however, relieve the Company from any liability to Indemnitee under this
Agreement unless (and then only to the extent that) such failure is Finally Adjudged to have materially prejudiced the Company’s ability to defend the Proceeding. 
 ii. At the same time, or from time to time thereafter, Indemnitee may further notify the Chair of the Board’s Audit Committee, by
delivery of a supplemental Indemnification Notice (or by checking the second box and providing the corresponding information on the initial Indemnification Notice), of any Proceeding for which indemnification is being sought under this Agreement.

 f. Determination of Entitlement. 
 i. To the extent Indemnitee has been wholly successful, on the merits or otherwise, in the defense of any Proceeding, the Company shall
indemnify Indemnitee against all expenses incurred by Indemnitee in connection with the Proceeding, within ten (10) days after receipt of an Indemnification Notice delivered pursuant to subsection (e)(ii). 
 ii. In the event that subsection (f)(i) above is inapplicable, or does not apply to the entire Proceeding, the Company shall indemnify
Indemnitee within thirty (30) days after receipt of an Indemnification Notice delivered pursuant to subsection (e)(ii) unless during such thirty (30) day period the Audit Committee of the Board delivers to Indemnitee a written notice
contesting Indemnitee’s indemnification claim (the “Contest Notice”), which Contest Notice shall state with particularity the reasons for the decision to challenge Indemnitee’s indemnification claim and the evidence the
Company would present in any forum in which Indemnitee might seek review of such decision. The Company’s failure to deliver a Contest Notice within thirty (30) days after the Company’s receipt of an Indemnification Notice pursuant to
subsection (e)(ii) shall obligate the Company unconditionally to indemnify Indemnitee to the extent requested in the Indemnification Notice. 
 iii. At any time following receipt of a Contest Notice, Indemnitee shall be entitled to select a forum for the review of, and in which the Company will defend, the Contest Notice and the Company’s decision to
challenge Indemnitee’s indemnification claim. Such selection shall be made from among the following alternatives, by delivering a written notice to the Chair of the Board’s Audit Committee indicating Indemnitee’s selection of forum:

 (a) A quorum of the Board consisting of directors who are not parties to the Proceeding for which indemnification is being
sought; 
  

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 (b) Special Legal Counsel (as defined in subsection (f)(vii) below); or 
 (c) A panel of three independent arbitrators, one of whom is selected by the Company, another of whom is selected by Indemnitee and the
last of whom is selected by the first two arbitrators so selected,  
 provided, that nothing in this Section 1(f) shall prevent
Indemnitee at any time from bringing suit against the Company to recover the amount of the indemnification claim (whether or not Indemnitee has otherwise exhausted its contractual remedies hereunder). In addition, any determination by a forum
selected by Indemnitee that Indemnitee is not entitled to indemnification, or any failure to make the payments requested in the Indemnification Notice, shall be subject to judicial review by any court of competent jurisdiction, as described in
Section 3. 
 iv. In any forum in which the Company defends its Contest Notice and its decision to challenge
Indemnitee’s indemnification claim under this Section 1(f), the presumptions, burdens and standard of review set forth in Section 3(c) shall apply and are incorporated into this Section 1(f) by reference, except as otherwise
expressly provided in Section 3(c). 
 v. As soon as practicable, and in no event later than fifteen (15) days after
the forum has been selected pursuant to subsection (f)(iii) above, the Company shall, at its own expense, submit the defense of its Contest Notice and the question of Indemnitee’s right to indemnification to the selected forum. 
 vi. The forum selected shall render its decision concerning the validity of the Contest Notice and the Company’s decision to deny
Indemnitee’s indemnification claim within thirty (30) days after the forum has been selected in accordance with subsection (f)(iii). 
 vii. For the purposes of this Agreement, “Special Legal Counsel” shall mean an attorney or firm of attorneys, selected by Indemnitee and approved by the Company (which approval shall not be
unreasonably withheld), who must not have performed other services for the Company or Indemnitee within the last three years. 
 2.
Expense Advances. 
 a. Generally. The right to indemnification conferred by Section 1 shall include the
right to have the Company pay Indemnitee’s attorneys’ fees and other expenses, including but not limited to out of pocket costs and disbursements, incurred in connection with any Proceeding, or in connection with bringing, defending and/or
pursuing an Enforcement Action (as defined in Section 3(a)), as such expenses are incurred and in advance of the final disposition of such Proceeding or Enforcement Action (such entitlement is referred to hereinafter as an “Expense
Advance”). 
  

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 b. Undertaking. The Company’s obligation to provide an Expense Advance is
subject only to the following condition: if the Proceeding arose in connection with Indemnitee’s service as a director and/or officer of the Company or member of a committee of the Board (and not in any other capacity in which Indemnitee
rendered service, including but not limited to service to any Related Company), then Indemnitee or his or her representative must have executed and delivered to the Chair of the Board’s Audit Committee an undertaking (in the form of Exhibit
B hereto) (the “Statement of Undertaking”) to repay all Expense Advances if and to the extent that it may be Finally Adjudged that Indemnitee is not entitled to be indemnified for such Expense Advance under one or more of
clauses (i) through (iv) of the first sentence of Section 1(a). The Statement of Undertaking need not be secured and shall be accepted by the Company without reference to Indemnitee’s financial ability to make repayment. No
interest shall be charged on any obligation to reimburse the Company for any Expense Advance. 
 c. Service as Witness.
Notwithstanding any other provision of this Agreement, the Company’s obligation to indemnify, or provide Expense Advances under Section 2, to Indemnitee in connection with Indemnitee’s appearance as a witness in a Proceeding at a
time when Indemnitee has not been made a named defendant or respondent to the Proceeding shall be absolute and unconditional, and not subject to any of the limitations on, or conditions to, Indemnitee’s right to indemnification or to receive an
Expense Advance otherwise contained in this Agreement. 
 3. Procedures for Enforcement. 
 a. Enforcement. If a claim for indemnification made by Indemnitee hereunder is not paid in full (whether or not the provisions of
Section 1(f) have been complied with, or completed), or a claim for an Expense Advance made by Indemnitee hereunder is not paid in full within twenty (20) days from delivery of a Statement of Undertaking to the Chair of the Board’s
Audit Committee, Indemnitee may, but need not, at any time thereafter bring suit against the Company to recover the unpaid amount of the claim (an “Enforcement Action”). 
 b. Required Indemnification. The court hearing the Enforcement Action shall order the Company to provide indemnification or to
advance expenses to Indemnitee to the full extent sought in the Enforcement Action if it determines that (i) the Enforcement Action is brought by Indemnitee to enforce the Company’s obligation under Section 1(f)(ii) unconditionally to
indemnify Indemnitee to the extent requested in the Indemnification Notice where the Company has failed timely to deliver a Contest Notice, or (ii) the Company failed to prove by clear and convincing evidence that Indemnitee is not entitled to
indemnification based on one or more of clauses (i) through (iv) of the first sentence of Section 1(a). 
 c.
Presumptions, Burdens and Standard of Review in Enforcement Action or Company Determination. In any Enforcement Action (and, except as otherwise expressly provided in this Section 3(c), in any review of a Contest Notice by a forum
described in Section 1(f)) the following presumptions (and limitations on presumptions), burdens and standard of review shall apply: 
 i. The Company shall conclusively be presumed to have entered into this Agreement and assumed the obligations imposed hereunder in order to induce Indemnitee to serve or to continue to serve as an director and/or
officer of the Company and/or one or more of its subsidiaries; 
  

 5 

 ii. This Agreement shall conclusively be presumed to be valid and Article 5 of the
Articles shall conclusively be presumed to be effective to waive all of the limitations in RCW 23B.08.510 through RCW 23B.08.550, and RCW 23B.08.560(2); 
 iii. Submission of an Indemnification Notice in accordance with Section 1(e)(ii) or a Statement of Undertaking to the Company shall create a presumption that Indemnitee is entitled to indemnification or an
Expense Advance hereunder, and thereafter the Company shall have the burden of proving by clear and convincing evidence (sufficient to rebut the foregoing presumption) that Indemnitee is not entitled to indemnification based on one or more of
clauses (i) through (iv) of the first sentence of Section 1(a); 
 iv. Indemnitee may establish a conclusive
presumption of any objective fact related to an event or occurrence by delivering to the Company a declaration made under penalty of perjury that such fact is true, provided, that no such presumption may be established with respect to the
ultimate conclusions set forth in any of clauses (i) through (iv) of the first sentence of Section 1(a); 
 v.
If Indemnitee is or was serving as a director, officer, employee, trustee or agent of a corporation of which a majority of the shares entitled to vote in the election of its directors is held by the Company or in an executive or management capacity
in a partnership, joint venture, trust or other enterprise of which the Company or a wholly-owned subsidiary of the Company is a general partner or has a majority ownership, then such corporation, partnership, joint venture, trust or enterprise
shall conclusively be deemed a Related Company and Indemnitee shall conclusively be deemed to be serving such Related Company at the request of the Company; 
 vi. Neither (i) the failure of the Company (including but not limited to the Board, the Company’s officers, independent counsel,
Special Legal Counsel, any arbitrator or the Company’s shareholders) to make a determination prior to the commencement of the Enforcement Action whether indemnification, or payment of an Expense Advance, of Indemnitee is proper in the
circumstances nor (i) an actual determination by the Company, the Board, the Company’s officers, independent counsel, Special Legal Counsel, any arbitrator or the Company’s shareholders that Indemnitee is not entitled to
indemnification or payment of an Expense Advance shall be a defense to the Enforcement Action, create a presumption that Indemnitee is not entitled to indemnification hereunder or be considered by a court in an Enforcement Action, which shall
conduct a de novo review of the relevant issues; and 
 vii. If the court hearing the Enforcement Action is unable to make
either of the determinations specified in Sections 3(b)(i) or 3(b)(ii), the court hearing the Enforcement Action shall nonetheless order the Company to provide indemnification or to advance expenses to Indemnitee to the full extent sought in the
Enforcement Action if it determines that Indemnitee is fairly and reasonably entitled to such indemnification or Expense Advance in view of all of the relevant circumstances, and without regard to the limitations set forth in clauses
(i) through (iii) of the first sentence of Section 1(a). In determining whether Indemnitee is fairly and reasonably entitled to such indemnification or expense advance, the court shall weigh (i) the relative benefits received by
the Company and/or any of its subsidiaries or any Related Company, or any of their affiliates other than Indemnitee, on the one hand, and 

  

 6 

 
Indemnitee on the other from the transaction from which such Proceeding arose or to which such Proceeding relates, and (ii) the relative fault of the
Company and/or any of its subsidiaries or any Related Company, or any of their affiliates other than Indemnitee, on the one hand, and of Indemnitee on the other in connection with the transaction that resulted in such Damages, as well as any other
relevant equitable considerations. The relative fault of the Company and/or any of its subsidiaries or any Related Company, or any of their affiliates other than Indemnitee, on the one hand, and of Indemnitee on the other shall be determined by
reference to, among other things, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Damages. If either (i) the relative benefits received by the Company
and/or any of its subsidiaries or any Related Company, or any of their affiliates other than Indemnitee, exceed the relative benefits received by Indemnitee, or (ii) the relative fault of the Company and/or any of its subsidiaries or any
Related Company, or any of their affiliates other than Indemnitee, exceeds the relative fault of Indemnitee, then Indemnitee shall be entitled to the full amount of indemnification and/or Expense Advance sought in the Enforcement Proceeding.

 d. Attorneys’ Fees and Expenses for Enforcement Action. In any Enforcement Action, the Company shall hold
harmless and indemnify Indemnitee against all of Indemnitee’s attorneys’ fees and expenses in bringing, defending and/or pursuing the Enforcement Action (including but not limited to attorneys’ fees at any stage, and on appeal);
provided, however, that the Company shall not be required to provide such indemnification for such fees and expenses if it is Finally Adjudged that Indemnitee knew prior to commencement of the Enforcement Action that Indemnitee was not
entitled to indemnification based on any of clauses (i) through (iv) of the first sentence of Section 1(a). 
 4. Defense
of Claim. 
 With respect to any Proceeding as to which Indemnitee has provided notice to the Company pursuant to Section 1(e)(i):

 a. The Company may participate therein at its own expense. 
 b. The Company (jointly with any other indemnifying party similarly notified, if any) may assume the defense thereof, with counsel
reasonably satisfactory to Indemnitee. After notice from the Company to Indemnitee of its election to so assume the defense thereof, the Company shall not be liable to Indemnitee under this Agreement for any legal fees or other expenses (other than
reasonable costs of investigation) subsequently incurred by Indemnitee in connection with the defense thereof unless (i) the employment of counsel by Indemnitee or the incurring of such expenses has been authorized by the Company,
(ii) Indemnitee shall have concluded that there is a reasonable possibility that a conflict of interest could arise between the Company and Indemnitee in the conduct of the defense of such Proceeding, which conflict of interest shall be
conclusively presumed to exist upon Indemnitee’s delivery to the Company of a written certification of such conclusion, or (iii) the Company shall not in fact have employed counsel to assume the defense of such Proceeding, in each of which
cases the legal fees and other expenses of Indemnitee shall be at the expense of the Company. The Company shall not be entitled to assume the defense of a Proceeding brought by or on behalf of the Company or as to which Indemnitee shall have reached
the conclusion described in clause (ii) above. 
  

 7 

 c. The Company shall not be liable for any amounts paid in settlement of any Proceeding
effected without its written consent. 
 d. The Company shall not settle any Proceeding in any manner that would impose any
penalty or limitation on Indemnitee without Indemnitee’s written consent. 
 e. Neither the Company nor Indemnitee will
unreasonably withhold its or his or her consent to any proposed settlement of any Proceeding. 
 5. Maintenance of D&O Insurance.

 a. Subject to Section 5(c) below, during the period (the “Coverage Period”) beginning on the date of
this Agreement and ending at the later of (i) six (6) years following the time Indemnitee is no longer serving as either a director or officer of the Company and/or one or more subsidiaries or any Related Company, or (ii) at the end
of such longer period during which Indemnitee believes that a reasonable possibility of exposure to a Proceeding or Damages persists (which extended period must be consented to by the Company, such consent not to be unreasonably withheld), the
Company shall maintain a directors’ and officers’ liability insurance policy in full force and effect or shall have purchased or otherwise provided for a run-off or tail policy or endorsement to such existing policy (“D&O
Insurance”), providing in all respects coverage at least comparable to and in similar amounts, and with similar exclusions, as that obtained by other similarly situated companies as determined in good faith by any of the parties referenced
in Section 1(f)(iii)(a) through (c). 
 b. Under all policies of D&O Insurance, Indemnitee shall during the Coverage
Period be named as an insured in such a manner as to provide Indemnitee the same rights and benefits, subject to the same limitations, as are accorded to the Company’s directors or officers most favorably insured by such policy, and each
insurer under a policy of D&O Insurance shall be required to provide Indemnitee written notice at least thirty (30) days prior to the effective date of termination of the policy. 
 c. The Company shall have no obligation to obtain or maintain D&O Insurance to the extent that such insurance is not reasonably
available, the premium costs for such insurance are disproportionate to the amount of coverage provided, or the coverage provided by such insurance is so limited by exclusions as to provide an insufficient benefit, such determination to be made by
any of the parties referenced in Section 1(f)(iii)(a) through (c). 
 d. It is the intention of the parties in entering
into this Agreement that the insurers under the D&O Insurance, if any, shall be obligated ultimately to pay any claims by Indemnitee which are covered by D&O Insurance, and nothing herein shall be deemed to diminish or otherwise restrict the
Company’s or Indemnitee’s right to proceed or collect against any insurers under D&O Insurance or to give such insurers any rights against the Company or Indemnitee under or with respect to this Agreement, including but not limited to
any right to be subrogated to the Company’s or Indemnitee’s rights hereunder, unless otherwise expressly agreed to by the Company and Indemnitee in writing. The obligation of such insurers to the Company and Indemnitee shall not be deemed
reduced or impaired in any respect by virtue of the provisions of this Agreement. 
  

 8 

 e. No indemnification pursuant to this Agreement shall be provided by the Company for
Damages or Expense Advances that have been paid directly to Indemnitee by an insurance carrier under a policy of D&O Insurance or other insurance maintained by the Company. 
 f. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of
Indemnitee to recover the same amounts from any insurer or other third person (other than another person with indemnification rights against the Company substantially similar those of Indemnitee under this Agreement). Indemnitee shall execute all
documents required and take all acts necessary to secure such rights and enable the Company effectively to bring suit to enforce such rights. 
 6. Partial Indemnification; Mutual Acknowledgment; Contribution. 
 a. Partial Indemnification. If
Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of any Damages in connection with a Proceeding, but not for the total amount thereof, the Company shall nevertheless indemnify
Indemnitee for the portion of such Damages to which Indemnitee is entitled. 
 b. Mutual Acknowledgment. The Company
and Indemnitee acknowledge that, in certain instances, federal law or public policy may override applicable state law and prohibit the Company from indemnifying Indemnitee under this Agreement or otherwise. For example, the Company and Indemnitee
acknowledge that the Securities and Exchange Commission (the “SEC”) has taken the position that indemnification is not permissible for liabilities arising under certain federal securities laws, and federal legislation prohibits
indemnification for certain ERISA violations. Furthermore, Indemnitee understands that the Company has undertaken or may be required in the future to undertake with the SEC to submit for judicial determination the issue of the Company’s power
to indemnify Indemnitee in certain circumstances; all of the Company’s obligations under this Agreement will be subject to the requirements of any such undertaking required by the SEC to be made by the Company. 
 c. Contribution. If the indemnification provided under Sections 1, 2 and 6 is unavailable by reason of any of the circumstances
specified in one or more of clauses (i) through (iii) of the first sentence of Section 1(a) then, in respect of any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding), the
Company shall contribute to the amount of Damages (including attorneys’ fees) actually and reasonably incurred and paid or payable by Indemnitee in such proportion as is appropriate to reflect (i) the relative benefits received by the
Company and/or any of its subsidiaries or any Related Company, or any of their affiliates other than Indemnitee, on the one hand, and Indemnitee on the other from the transaction or events from which such Proceeding arose or to which such Proceeding
relates, and (ii) the relative fault of the Company and/or any of its subsidiaries or any Related Company, or any of their affiliates other than Indemnitee, on the one hand, and of Indemnitee on the other in connection with the transaction or
events that resulted in 

  

 9 

 
such Damages, as well as any other relevant equitable considerations. The relative fault of the Company and/or any of its subsidiaries or any Related
Company, or any of their affiliates other than Indemnitee, on the one hand, and of Indemnitee on the other shall be determined by reference to, among other things, the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent the circumstances resulting in such Damages. The Company agrees that it would not be just and equitable if contribution pursuant to this Section 6(c) were determined by pro rata allocation or any other method of allocation
that does not take account of the foregoing equitable considerations. 
 7. Release of Claims Relating to Officer’s Failure to
Discharge Duties. If Indemnitee is an officer of the Company and/or one or more of its subsidiaries, the indemnification and other rights and benefits provided to Indemnitee by this Agreement shall apply fully with respect to any Proceeding in
which it is claimed or adjudicated that Indemnitee is liable to the Company and/or one or more of its subsidiaries by reason of having failed to discharge the duties of Indemnitee’s office, and the Company hereby irrevocably releases all such
claims and liabilities, agrees to cause its subsidiaries to release all such claims, and agrees to hold Indemnitee harmless with respect to any such claims; provided, however, that the foregoing indemnification, release and hold
harmless obligations of the Company shall have no application with respect to claims by and liabilities to the Company based upon actions or omissions described in one or more of clauses (i) through (iv) of the first sentence of
Section 1(a). 
 8. Miscellaneous. 
 a. This Agreement shall be interpreted and enforced in accordance with the laws of the State of Washington. 
 b. This Agreement shall be binding upon Indemnitee and upon the Company, its successors and assigns, and shall inure to the benefit of Indemnitee, Indemnitee’s heirs, personal representatives and assigns and to
the benefit of the Company, its successors and assigns. The Company shall require any successor to the Company (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the
Company, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. 
 c. Indemnitee’s rights to indemnification and advancement of expenses under this Agreement shall not be deemed exclusive of any other
or additional rights to which Indemnitee may be entitled under the Articles or the Bylaws of the Company, any vote of shareholders or disinterested directors, the Statute or otherwise, whether as to actions or omissions in Indemnitee’s official
capacity or otherwise. 
 d. Nothing in this Agreement shall confer upon Indemnitee the right to continue to serve as a
director and\or officer of the Company or any of its subsidiaries or any Related Company. If Indemnitee is an officer of the Company, then, unless otherwise expressly provided in a written employment agreement between the Company and Indemnitee, the
employment of Indemnitee with the Company shall be terminable at will by either party. The 

  

 10 

 
indemnification and release provided under this Agreement shall apply to any and all Proceedings, notwithstanding that Indemnitee has ceased to be a
director, officer, partner, employee, trustee or agent of the Company, any of its subsidiaries or a Related Company, and shall inure to the benefit of the heirs, executors and administrators of Indemnitee. 
 e. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever, then:
(i) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, all portions of any paragraphs of this Agreement containing any such invalid, illegal or unenforceable provision that
are not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (ii) to the fullest extent possible, the provisions of this Agreement (including, without limitation, all portions of any paragraphs
of this Agreement containing any such invalid, illegal or unenforceable provision, that are not themselves invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or
unenforceable. 
 f. Any notices or communications to be given or required to be given under this Agreement shall be given by
personal delivery or registered airmail, overnight courier, telex, facsimile or electronic mail at the following address (or such other address as the relevant party provides the other party in writing and referencing this Section 8(f)):

 Company: 
 Northstar
Neuroscience, Inc. 
 2401 Fourth Avenue, Suite 300 
 Seattle, Washington 98121 
 (Fax) 1-206-902-2019 
 (Tel) 1-206-902-1477 
 Attn: Chief Executive
Officer 
 electronic mail:
                                         
    
 Indemnitee: 
 Brian Dow 
 _____________________________ 
 _____________________________ 
 (Fax)
                             
 (Tel)
                             
 electronic mail:
                                         
    
 Notices and communications shall be deemed received by the addressee on the date of delivery if delivered in person, on the third
(3rd) day after mailing if delivered by registered airmail, on the next business day after mailing if sent by overnight courier, on the next business day if sent by telex or facsimile, or upon confirmation of delivery when directed to the
electronic mail address described above if sent by electronic mail. 
  

 11 

 g. No amendment, modification, termination or cancellation of this Agreement shall be
effective unless in writing signed by both parties hereto. 
 h. If Indemnitee has previously executed an indemnification
agreement with the Company, this Agreement supersedes such prior indemnification agreement in its entirety. 
 i. This
Agreement may be executed in two counterparts, each of which shall be deemed an original, but both of which together shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement effective as of the day and year first set forth above. 
  

									
	 “Company”
	 		 	NORTHSTAR NEUROSCIENCE, INC.
					
		 		 		 	By:	 	/s/ John S. Bowers Jr.
		 		 		 	Name:	 	John S. Bowers Jr.
		 		 		 	Its:	 	President and Chief Executive Officer
			
	 “Indemnitee”
	 		 	/s/ Brian B. Dow
		 		 	Brian Dow

  

 12 

 EXHIBIT A 
 INDEMNIFICATION NOTICE 
 Check the appropriate space below, and provide a brief description of the
Proceeding as requested below: 
  

			
	 ̈	  	Notice is hereby given by the undersigned, ____________________________, pursuant to Section 1(e)(i) of the Indemnification Agreement (the “Agreement”) dated
___________________ between Northstar Neuroscience, Inc., a Washington corporation (the “Company”), and the undersigned, of the commencement of a Proceeding, as defined in the Agreement. A brief description of the Proceeding is as
follows:
		
	 ̈	  	If indemnification of particular Damages (as defined in the Agreement) is being sought at this time, pursuant to Section 1(e)(ii) of the Agreement, the undersigned hereby requests
indemnification by the Company under the terms of the Agreement with respect to the following Damages incurred in connection with the Proceeding:

 Dated:
                                ,
                    . 
  

	
	  
	 [Signature of Indemnitee]
 Brian
Dow

 EXHIBIT B 
 STATEMENT OF UNDERTAKING 
  

			
	STATE OF                                     
        	  	)
		  	) ss.
	COUNTY OF                                     
    	  	)

 I,
                                , being first duly sworn, do depose and say as
follows: 
 1. This Statement is submitted pursuant to the Indemnification Agreement (the “Agreement”) dated
                                 between Northstar Neuroscience, Inc., a
Washington corporation (the “Company”), and me. 
 2. I am requesting an Expense Advance, as defined in the Agreement.

 3. I hereby undertake to repay the Expense Advance if and to the extent it is Finally Adjudged (as defined in the Agreement) that I am not
entitled under the Agreement to be indemnified by the Company. 
 4. The expenses for which advancement is requested, and a brief description
of the underlying Proceeding (as defined in the Agreement), are as follows: 
 [Add brief description of expenses and
Proceeding] 
 DATED:
                                         
   ,                 . 
  

					
		 		 	  

 SUBSCRIBED AND SWORN TO before me this          day of
                                , 
  

					
		 		 	
			
	(Seal or stamp)	 		 	  
		 		 	Notary Signature
			
		 		 	  
		 		 	Print/Type Name
		 		 	 Notary Public in and for the State of Washington,
 residing at
                                         
                                       

My appointment expires

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