SCIENTIFIC LEARNING CORP
EMPLOYEE AGREEMENT
<DOCUMENT>
<TYPE>EX-10.23
<SEQUENCE>4
<FILENAME>d50140_ex10-23.htm
<DESCRIPTION>EMPLOYEE AGREEMENT
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<P ALIGN="RIGHT"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
10.23 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>March 12, 2002</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Sheryle Bolton<BR>
5576 Glenbrook Drive<BR>
Oakland, CA  94618</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Sheryle:</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This letter describes the
agreement that you and Scientific Learning Corporation (the &#147;Company&#148;)
have reached (the &#147;Agreement&#148;) with respect to severance compensation
for you upon certain possible future events. </FONT></P>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Separation</B>.
If, at any time in the 12 months following the date of this letter, your employment with
the Company ends for any of the reasons set forth below, you will receive the severance
compensation outlined in Sections 2(a) through 2(d) below: </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Termination
by the Company of your employment for any reason other than Cause, as defined below.
&#147;Cause&#148; shall be defined to include the following, as determined in good faith
by the Board of Directors in its reasonable discretion: (i) material breach of the Company&#146;s
policies, (ii) neglect or abandonment of assigned duties, (iii) the commission of any act
of fraud, embezzlement or dishonesty against the Company, (iv) conviction of any felony
or any crime of moral turpitude or dishonesty, (v) intentional damage to the Company&#146;s
reputation or property, (vi) any material breach of a proprietary information and
inventions agreement with the Company or unauthorized use or disclosure of confidential
information or trade secrets of the Company, or (vii) conduct by you that demonstrates
unfitness to serve. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Resignation
by you of your employment with the Company within 30 days after any of the following
events: (i) end of your service as Chief Executive Officer of the Company; (ii) a
material change in your compensation or duties; or (iii) the creation of a working
environment that would cause a reasonable person to terminate his or her employment. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.</FONT></TD>
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<B>Severance Compensation</B>. If your employment with the Company ends for any
of the reasons set forth in Section 1 above during the period specified in
Section 1, and provided that you first execute a General Release in the form
attached as an Exhibit hereto, the Company will provide you with the following: </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Severance
Pay. The Company will pay you 12 months of your current base salary as severance
pay (the &#147;Severance Payments&#148;). The Severance Payments will be made on the
Company&#146;s ordinary payroll dates, commencing with the first payroll date after the
date on which your employment ends or the Effective Date of the attached General Release,
whichever is later, and will be subject to standard payroll deductions and withholdings. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Stock
Options. All stock options from the Company that you then hold (including but not limited
to the stock option granted to you on March 7, 2002) will stop vesting on the separation
date, but the term within which they may be exercised will be extended to remain
exercisable until December 31, 2005. This may result in the disqualification of your
incentive stock options for tax purposes. Please consult your tax advisor for further
information on this issue. </FONT></TD>
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Sheryle Bolton<BR>
March 12, 2002<BR>
Page 2</FONT></P>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Health
Insurance. To the extent permitted by the federal COBRA law or, if applicable, state
insurance laws, and by the Company&#146;s current group health insurance policies, you
will be eligible to continue your health insurance benefits. You will be provided with a
separate notice of your COBRA rights. If you elect COBRA coverage, the Company will pay
or reimburse your COBRA premiums for 12 months after your separation date. After that
date, any continuation of coverage will be at your own expense </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>d) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Equipment.
You may retain the following Company equipment: any laptop computer, home desktop
computer or PDA in your use at the time of such termination of employment.</FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.</FONT></TD>
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<B>Other Compensation or Benefits</B>. You acknowledge that, except as expressly
provided in this Agreement or as otherwise provided in any later-executed
written agreement that may be entered into between you and the Company, you will
not receive any severance pay, additional compensation, or benefits with respect
to any separation that occurs within the 12 months after the date of this
letter. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Other
Matters with Respect to any Separation</B>. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On
any separation date, the Company will pay you all accrued salary, and all accrued and
unused paid time off earned through such separation date, subject to standard payroll
deductions and withholdings. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>You
agree that, within 30 days after any separation date, you will submit your final
documented expense reimbursement statement reflecting all business expenses you incurred
through the separation date, if any, for which you seek reimbursement. The Company will
reimburse you for these expenses pursuant to its regular business practice. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
later than five days after any separation date, except as specifically provided by
Section 2 or as subsequently authorized in writing by the Company, you will return to the
Company all Company documents (and all copies thereof) and other Company property which
you currently have in your possession or under your control, including, but not limited
to, Company files, notes, records, business plans and forecasts, financial information,
specifications, computer-recorded information, tangible property, credit cards, entry
cards, identification badges and keys, and any materials of any kind which contain or
embody any proprietary or confidential information of the Company (and all reproductions
thereof). </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>d) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Within
10 business days after any separation date, you will deliver to the Company the
certificates for all Company stock that is then subject to a security interest to secure
indebtedness by you to the Company. Except for such delivery of the certificates, the
rights and obligations of you and the Company under that certain Secured Promissory Note,
dated April 11, 2001 made by you in favor of the Company and that certain Pledge
Agreement dated April 11, 2001 between you and the Company shall remain in full force and
effect. If, under the terms of that Pledge Agreement, certain of the collateral
thereunder is entitled to be released from the security interest, then the Company shall
promptly return to you the certificates for the collateral that is entitled to be
released. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Proprietary Information Obligations</B>. Both during and after your
employment you will refrain from any disclosure of the Company&#146;s
proprietary or confidential information or materials and any use of those
materials except for the benefit of the Company. You acknowledge your continuing
obligations under your Proprietary Information and Inventions Agreement, a copy
of which is attached hereto. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.</FONT></TD>
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<B>Confidentiality</B>. The provisions of this Agreement shall be held in
strictest confidence by you and the Company and shall not be publicized or
disclosed in any manner whatsoever; provided, however, that (a) you may disclose
this Agreement in confidence to your immediate family; (b) the parties may
disclose this Agreement in confidence to their respective attorneys,
accountants, tax preparers, and financial advisors; (c) The Company may disclose
this Agreement as necessary to fulfill standard or legally required corporate
reporting or disclosure requirements; and (d) the parties may disclose this
Agreement insofar as such disclosure may be necessary to enforce its terms or as
otherwise required by law. </FONT></TD>
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Sheryle Bolton<BR>
March 12, 2002<BR>
Page 3</FONT></P>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Nondisparagement</B>. Both you and the Company agree not to disparage the
other party, and the other party&#146;s officers, directors, employees,
shareholders and agents, in any manner likely to be harmful to them or their
business, business reputation or personal reputation; provided that both you and
the Company shall respond accurately and fully to any question, inquiry, or
request for information when required by legal process. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Release. </B>You<B> </B>hereby release, acquit and forever discharge the
Company and its officers, directors, agents, employees, attorneys, shareholders,
successors, assigns and affiliates, of and from any and all claims, liabilities,
demands, causes of action, costs, expenses, attorneys fees, damages, indemnities
and obligations of every kind and nature, in law, equity, or otherwise, known
and unknown, suspected and unsuspected, disclosed and undisclosed, arising out
of or in any way related to agreements, events, acts or conduct at any time
prior to and including the execution date of this Agreement, including but not
limited to: all such claims and demands directly or indirectly arising out of or
in any way connected with your employment with the Company or the termination of
that employment; claims or demands related to salary, bonuses, commissions,
stock, stock options, or any other ownership interests in the Company, vacation
pay, fringe benefits, expense reimbursements, severance pay, or any other form
of compensation; claims pursuant to any federal, state or local law, statute, or
cause of action including, but not limited to, the federal Civil Rights Act of
1964, as amended, and claims for attorneys&#146; fees, costs, or any other
expenses thereunder; the federal Americans with Disabilities Act of 1990; the
federal Age Discrimination in Employment Act of 1967, as amended
(&#147;ADEA&#148;); the Family and Medical Leave Act; California Labor Code or
any other applicable state labor code; the Fair Labor Standards Act; the
California Fair Employment and Housing Act, as amended or any other applicable
state anti-discrimination statute; tort law; contract law; or the law of
wrongful discharge, discrimination, harassment, fraud, defamation, emotional
distress, and breach of the implied covenant of good faith and fair dealing. </FONT></TD>
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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
You
acknowledge that you are knowingly and voluntarily waiving and releasing any rights you
may have under the ADEA, as amended. You also acknowledge that the consideration given
for the waiver and release in the preceding paragraph hereof is in addition to anything
of value to which you were already entitled. You further acknowledge that you have been
advised by this writing, as required by the ADEA, that: (a) your waiver and release do
not apply to any rights or claims that may arise after the execution date of this
Agreement; (b) you have been advised hereby that you have the right to consult with an
attorney prior to executing this Agreement; (c) you have twenty-one (21) days to consider
this Agreement (although you may choose to voluntarily execute this Agreement earlier);
(d) you have seven (7) days following the execution of this Agreement by the parties to
revoke the Agreement; and (e) this Agreement shall not be effective until the date upon
which the revocation period has expired, which shall be the eighth day after this
Agreement is executed by you (&#147;Effective Date&#148;). </FONT></TD>
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YOU
UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. You
acknowledge that you have read and understand Section 1542 of the California Civil Code
which reads as follows: &#147;<B>A general release does not extend to claims which
the creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his settlement
with the debtor</B>&#148;. You hereby expressly waive and relinquish all rights
and benefits under that section and any law of any jurisdiction of similar effect with
respect to my release of any claims you may have against the Company. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Public Statements. </B>Should your duties at the Company change, should your
employment with the Company terminate, or should the Company conclude that this
Agreement or the matters covered by this Agreement should be publicly announced,
the Company and you shall cooperate in good faith to agree upon a press release
announcing such change, provided that such release shall in all events comply
with the Company&#146;s public disclosure obligations. All public statements by
the Company and by you shall be consistent with the terms of such press release. </FONT></TD>
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Sheryle Bolton<BR>
March 12, 2002<BR>
Page 4</FONT></P>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
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<B>Indemnification</B>. Nothing in this Agreement or in any General Release
signed pursuant hereto is intended to, nor shall it, release the Company from
its indemnification obligations pursuant to California state law, the
Company&#146;s bylaws, or the Indemnity Agreement between you and the Company
dated as of July 7, 1998. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Miscellaneous</B>. This Agreement, including the Exhibits hereto, constitutes
the complete, final and exclusive embodiment of the entire agreement between you
and the Company with regard to its subject matter. This Agreement is entered
into without reliance on any promise or representation, written or oral, other
than those expressly contained herein, and it supersedes any other promises,
warranties, or representations. This Agreement may not be modified or amended
except in writing signed by both you and a duly authorized officer of the
Company. This Agreement shall bind the heirs, personal representatives,
successors and assigns of both you and the Company, and inure to the benefit of
your and the Company&#146;s heirs, personal representatives, successors and
assigns. This Agreement shall be deemed to have been entered into and shall be
construed and enforced in accordance with the laws of the State of Delaware as
applied to contracts made and to be performed entirely within Delaware. </FONT></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If this Agreement is
acceptable to you, please sign below and return one fully signed original to
Linda Carloni within the time specified in Section 8. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sincerely,</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SCIENTIFIC LEARNING CORPORATION</FONT></P>

<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
By: /s/ Rodman W. Moorhead, III<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Rodman W. Moorhead III<BR>
Chairman of the Compensation Committee</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AGREED:</FONT></P>

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/s/ Sheryle Bolton<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Sheryle Bolton
</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: 3/18/02<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
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<TD WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibits:   </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proprietary Information and Inventions Agreement<BR>General Release </FONT></TD>
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<BR>





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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>GENERAL
RELEASE</FONT></H1>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
hereby release, acquit and forever discharge the Scientific Learning Corporation
(the &#147;Company&#148;) and its officers, directors, agents, employees,
attorneys, shareholders, successors, assigns and affiliates, of and from any and
all claims, liabilities, demands, causes of action, costs, expenses, attorneys
fees, damages, indemnities and obligations of every kind and nature, in law,
equity, or otherwise, known and unknown, suspected and unsuspected, disclosed
and undisclosed, arising out of or in any way related to agreements, events,
acts or conduct at any time prior to and including the execution date of this
General Release, including but not limited to: all such claims and demands
directly or indirectly arising out of or in any way connected with my employment
with the Company or the termination of that employment; claims or demands
related to salary, bonuses, commissions, stock, stock options, or any other
ownership interests in the Company, vacation pay, fringe benefits, expense
reimbursements, severance pay, or any other form of compensation; claims
pursuant to any federal, state or local law, statute, or cause of action
including, but not limited to, the federal Civil Rights Act of 1964, as amended,
and claims for attorneys&#146; fees, costs, or any other expenses thereunder;
the federal Americans with Disabilities Act of 1990; the federal Age
Discrimination in Employment Act of 1967, as amended (&#147;ADEA&#148;); the
Family and Medical Leave Act; California Labor Code or any other applicable
state labor code; the Fair Labor Standards Act; the California Fair Employment
and Housing Act, as amended or any other applicable state anti-discrimination
statute; tort law; contract law; or the law of wrongful discharge,
discrimination, harassment, fraud, defamation, emotional distress, and breach of
the implied covenant of good faith and fair dealing. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
acknowledge that I am knowingly and voluntarily waiving and releasing any rights
I may have under the ADEA, as amended. I also acknowledge that the consideration
given for the waiver and release in the preceding paragraph hereof is in
addition to anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as required by the ADEA,
that: (a) my waiver and release do not apply to any rights or claims that may
arise after the execution date of this General Release; (b) I have been advised
hereby that I have the right to consult with an attorney prior to executing this
General Release; (c) I have twenty-one (21) days to consider this General
Release (although I may choose to voluntarily execute this General Release
earlier); (d) I have seven (7) days following the execution of this General
Release to revoke the Release; and (e) this General Release shall not be
effective until the date upon which the revocation period has expired, which
shall be the eighth day after the General Release is executed by me
(&#147;Effective Date&#148;). </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
UNDERSTAND THAT THIS GENERAL RELEASE INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN
CLAIMS. I acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: <B>&#147;A general release does
not extend to claims which the creditor does not know or suspect to exist in his
favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor</B>&#148;. I hereby expressly
waive and relinquish all rights and benefits under that section and any law of
any jurisdiction of similar effect with respect to my release of any claims I
may have against the Company. </FONT></P>

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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By:<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Sheryle J. Bolton<BR>
<BR>
Date:<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
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