Document:

EX-10.4

 Exhibit 10.4 
 MASTER SERVICES AGREEMENT dated April 30, 2013 (the “Agreement”) 
  

	BETWEEN:	RTK WP CANADA, ULC, a British Columbia unlimited liability company, with its registered office located at Suite 1700, Park Place, 666 Burrard Street, Vancouver,
British Columbia (BC), V6C 2X8; 

 (hereinafter referred to as “RTK”) 

 

	AND:	QUEBEC STEVEDORING COMPANY LIMITED, having a place of business at 961 Champlain Boulevard, Quebec City (Quebec), G1K 4J9; 

(hereinafter referred to as “QSL”) 
 WHEREAS, RTK is in the business of producing, and supplying wood pellets to export off-take parties via ships located at the Port of Quebec, from facilities located within and in the vicinity of
the Provinces of Ontario; 
 WHEREAS, QSL is in the business of supplying stevedoring, terminalling and warehousing services, notably at
its facilities at the Port of Quebec and its vicinity, in the Province of Quebec; 
 WHEREAS, RTK desires to exclusively retain QSL, and
QSL agrees, to provide to RTK stevedoring, terminalling and warehousing services at the Anse-au-Foulon (Wolfe’s Cove) Sector of the Port of Québec, including without limit, wharf 103; 

WHEREAS, in order to render such stevedoring, terminalling and warehousing services, QSL will proceed to the conception, engineering, order,
construction and installation of the Infrastructures (as such expression is hereinafter described) pursuant to the terms and conditions of this Agreement; and 
 WHEREAS, RTK is prepared to compensate QSL for the Infrastructure Costs (as provided herein) pursuant to the terms and conditions of this Agreement. 

THIS AGREEMENT WITNESSETH THAT IN CONSIDERATION of the covenants and agreements hereinafter mentioned, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, RTK and QSL (collectively the “Parties” and each individually a “Party”) hereby agree as follows: 

 

	1.	SERVICES 

  

	1.1	Subject to the terms and conditions of this Agreement, RTK hereby retains QSL, and QSL agrees, to provide at QSL’S facilities at the Anse-au-Foulon (Wolfe’s
Cove) Sector of the Port of Québec, wharf section 103 (the “Terminal”) including all necessary stevedoring, terminalling and warehousing services required for the receipt, storage delivery and loading of RTK’s wood
pellet products having the characteristics set out in Schedule “B” (the “Product”), such services to include, without limit, those services further described in Schedule “A” (collectively the
“Services”). QSL will provide all of the facilities and labour necessary to perform the Services for the fees, rates and charges (including the Infrastructure Costs) provided for in this Agreement. For the Term (as defined in
Section 5.1) of this Agreement QSL agrees that (i) RTK will be the exclusive and sole customer permitted to use the storage domes located at the Terminal (the “Domes”) and (ii) RTK will have first priority rights to
use and access of the Infrastructure Equipment (as defined below) other than the Domes, meaning that QSL shall not provide stevedoring, loading or unloading services to another customer in advance of RTK using such Infrastructure Equipment. QSL
agrees that after its permitted use of Infrastructure Equipment for other customers to use commercially efforts to clean and decontaminate the Infrastructure Equipment to prevent any cross contamination of third party product to RTK’s Product.
Any net revenues received by QSL for permitted use by any third party shall be split equally between the Parties. 

	1.2	The Services shall be performed by QSL in accordance with this Agreement, Good Industry Practice and in compliance with Applicable Law. For the purpose of this
Section 1.2 the following terms shall have the following meanings; 

  

	 	(i)	“Good Industry Practice” means the exercise of that degree of skill care, diligence, prudence and foresight that would reasonably and ordinarily be
expected from a skilled and experienced operator engaged in the same type of undertaking under the same or similar circumstances; 

  

	 	(ii)	“Applicable Law” means with respect to any Governmental authority, (i) any law, statute, regulation code, ordinance, license, order, writ,
injunction, decision, directive, judgment, policy decree and any judicial or administrative interpretations thereof, (ii) any agreement, concession or arrangement with any Governmental Authority, and (iii) any license, permit or compliance
requirement, in each case applicable to either Party and as amended or modified from time to time; and 

  

	 	(iii)	“Governmental Authority” means any Canadian federal, provincial, territorial, regional, local or municipal governmental body, agency, board, bureau,
commission, department, authority or entity established or controlled by a government or subdivision thereof including any legislative, administrative or judicial body. 

 

	1.3	RTK shall comply, and cause its representatives and agents to comply, with Applicable Law and regulations and QSL’s and the Port of Québec’s policies
and guidelines, including without limitation, environmental, security and health and safety laws, regulations, policies and guidelines each as provided to RTK by QSL or as publically available. 

 

	1.4	RTK and QSL shall at all times act as Reasonable and Prudent Operators in relation to this Agreement. As used herein, “Reasonable and Prudent Operator”
shall mean a corporation seeking to perform its contractual obligations under this Agreement in good faith and, in so doing and in the general conduct of its undertaking, exercising that degree of skill, diligence, prudence and foresight which would
reasonably and ordinarily be expected from a skilled and experienced operator in substantial compliance with all applicable laws engaged in the same type of undertaking in the same locality and the under the same or similar circumstances and
conditions. 

  

	2.	COMPENSATION 

  

	2.1	As compensation for the performance of the Services, RTK shall pay to QSL fees and charges at those rates provided for in Schedule “D”, which rates are based
on the characteristics of the Product and subject to adjustment in the event the characteristics of the Product or the Services materially change. 

  

	2.2	Invoicing and payment of the fees for the Services shall be made in accordance with Article 3. 

	3.	INVOICES AND PAYMENT TERMS 

  

	3.1	QSL shall invoice RTK for the Services and third-party assessments, charges or levies attributable to RTK pursuant to the terms of this Agreement:

  

	 	(i)	Within fifteen (15) days after each loading of a shipment of the Product into a vessel; and 

 

	 	(ii)	At the end of each calendar month for the balance of fees owing for such month. 

 

	3.2	RTK shall pay QSL’s invoices within thirty (30) days after they have been received by RTK. 

 

	3.3	All payments shall be made by RTK to QSL by wire transfer (to the account indicated by QSL in its invoice), unless otherwise provided herein or agreed upon between the
Parties from time to time. 

  

	3.4	Any outstanding amounts owed by a Party to the other Party under this Agreement will bear interest at the rate of one point twenty-five percent (1.25%) per month
until full payment of such outstanding amount and all interest accrued thereon. 

  

	3.5	RTK shall pay to QSL any and all amounts due and payable pursuant to this Agreement without set-off or counterclaim and without deduction or withholding for on or any
present or future taxes, levies, duties or other charges of any kind. 

  

	3.6	For the purpose of invoicing under this Article 3, quantities of Product handled by QSL shall be determined (i) for rail car unloading based on scales used by RTK
and the rail provider in loading such cars at the Product production facility and (ii) for all other Services using the Loading Port weight certificate prepared and issued by an independent marine surveyor selected by RTK.

  

	4.	INFRASTRUCTURE COSTS 

  

	4.1	In order to render the Services and upon the execution of this Agreement, QSL will proceed with the conception, engineering, order, construction, installation and
commissioning of the equipment and infrastructures at the Terminal necessary to provide the Services as determined by QSL and agreed by RTK (the “Infrastructure Equipment”) in accordance with the timelines described below;

  

	 	(i)	Completion of site preparation and civil works (including required foundations) at the Loading Port by [*]; and 

 

	 	(ii)	Completion of construction and commission of the Infrastructure Equipment by [*]. 

 (collectively the “Infrastructures”). 
  

	4.2	The preliminary budgetary pro forma costs, capital expenditures and other expenses and charges related to the conception, order, construction and installation of the
Infrastructures are estimated at approximately $[*] to $[*] (the “Infrastructure Costs”), for which Infrastructure Costs RTK agrees to compensate to QSL without mark-up as provided herein. The maximum Infrastructure Costs RTK shall
be liable for shall be of an amount of twenty million dollars ($20,000,000), unless otherwise agreed in writing by the Parties, notably pursuant to Sections 4.4 and 4.5. QSL shall use best efforts to minimize and mitigate all Infrastructure Costs.

	4.3	Notwithstanding anything else in this Agreement, the final design and scope of the Infrastructures and any and all associated Infrastructure Costs are all subject to
the prior approval of RTK in its sole discretion. 

  

	4.4	In the event RTK approves a change to the Infrastructures pursuant to Section 4.5, the Parties shall agree to any adjustments to be made to fixed monthly payment,
if and as required. 

  

	4.5	Should any unforeseen substitution, material change or alteration, inclusion or exclusion equipment or infrastructures be necessary in order to render the Services in
accordance with Good Industry Practice, regardless if such has or not an impact on the Infrastructure Costs, QSL shall provide written notice of the same to RTK including a full description of the requested change and expected impact to the
Infrastructure Equipment Costs, and shall obtain RTK prior written approval, which approval shall not be unreasonably withheld. 

  

	4.6	RTK will pay to QSL a fixed monthly amount, equal to the final capital costs of the Infrastructures amortized over a [*] year period at a rate of [*] percent per year,
to compensate for the Infrastructure Costs incurred by the latter from time to time, provided that in no event shall the aggregate of such monthly payments exceed the maximum amount that RTK is liable to pay pursuant to Section 4.2 above
(unless otherwise agreed pursuant to Section 4.5). RTK shall pay to QSL starting on commencement of construction of the Infrastructures (as certified in writing by QSL), and thereafter on the next consecutive first regular working days of each
following month an amount of a maximum of $[*] as such monthly amount may be adjusted from time to time pursuant to Sections 4.4 and 4.5. 

  

	4.7	In the event RTK terminates this Agreement in circumstances other than those provided for in Sections 5.2 or 5.3, RTK shall not be relieved of its obligation to pay the
Infrastructure Costs on a monthly basis pursuant to the applicable terms and conditions provided for in this Agreement until full and final payment of said Infrastructure Costs has been received. 

 

	4.8	In the event of a default by QSL to their lender, RTK will have the right, but no obligation, to cure the default by QSL and assume the lending commitments to QSL
within a reasonable period of time. QSL shall also (i) notify RTK of any breach or notice of default received by its lender and (ii) within a reasonable period of time after signing this Agreement grant a security interest to RTK, specific
to the Infrastructure Equipment, that is second priority to the security interest granted to the lenders, and RTK’s right with respect to such assets will only be triggered in the event of a default between QSL and its lender. QSL also agrees
to the best of its ability to include RTK in the discussions with the proposed Lender at the time the financing arrangements are made between QSL and its Lender for the Infrastructure Equipment. 

 

	4.9	As security for QSL’s incurrence of indebtedness to pay the cost of Infrastructure, on the date hereof, RTK’s ultimate parent company Rentech, Inc. shall
execute and deliver the payment guaranty in favor of QSL in the form of Exhibit A hereto (the “Parent Guaranty”) , for outstanding amounts attributed to Infrastructure Costs up to a maximum amount of $20,000,000, or such greater
amount as agreed by the Parties under 4.5. QSL undertakes to require its lender to include provisions in the Credit Agreements to the effect that in the event of QSL’s payment default pursuant to said Credit Agreements and RTK’s cure of
such default, the latter will be granted priority to be assigned and/or acquire QSL’s rights in the Infrastructures. 

	4.10	In the event of Force Majeure, as such expression is hereinafter described, RTK shall not be relieved of its obligation to pay the Infrastructure Costs on a monthly
basis pursuant to the applicable terms and conditions provided in Article 5 until full and final payment of said Infrastructure Costs. 

  

	4.11	QSL shall maintain correct, detailed and complete records and books of account with supporting vouchers, invoices and other documentation showing all expenditures,
charges, expenses and related calculations of whatsoever nature made in relation to the Infrastructures and Infrastructure Costs. All such records and books shall be made available to RTK or RTK’s representative upon request.

  

	4.12	At all times, QSL shall retain ownership on the Infrastructures, being understood that at no times shall RTK have any title or ownership or any property rights
whatsoever in the Infrastructures other than the security interest granted under Section 4.8 above. 

  

	4.13	QSL represents and warrants that: 

  

	 	(i)	it will complete the design, construction, commissioning and start-up of the Infrastructure in accordance with the timeline set forth in Section 4.1 and as
necessary to perform the Services above; 

  

	 	(ii)	it will prior to the commencement of the construction of the Infrastructure have all appropriate and necessary land use rights with respect to those lands upon which
the Infrastructures will be constructed and that it will keep the same in good standing and that it will not attempt to transfer, assign or otherwise dispose of all or any portion of such land use rights to any third party, except for grants of
security interests as required by financial institutions; 

  

	 	(iii)	it will procure and obtain all necessary and required permits, approvals or authorizations required to build and operate the Infrastructure; 

 

	 	(iv)	if QSL transfers, assigns or otherwise alienates all or any portion of the Infrastructure to any third party it will require that such third party assume all
obligations under this Agreement and that this Agreement shall survive; and 

  

	 	(v)	it will not impose or seek to impose a lien whether, general or specific, or grant or allow to subsist or permit, any pledge, charge (by way of security or otherwise)
or encumbrance on or over any Product while at the Terminal or on Board of the vessel in respect of claims for any outstanding sums (whether actual or contingent), howsoever arising. QSL does not waive any statutory rights that may arise under
Applicable Law to impose a lien on the Product, including notably the right to retain the cargo for unpaid storage. 

  

	4.14	In the event of a sale or transfer of any issued shares of QSL or substantially all the assets of QSL, either of which would result in a change in majority ownership of
QSL, or if QSL amalgamates, restructures, consolidates, dissolves or combines with any third party, QSL shall require that such third party or surviving party assumes the obligations under this Agreement and shall ensure that any such third party
has the capacity to fulfill such obligations. 

	4.15	RTK shall have the right during the business hours of the Terminal as described in Schedule “A” and upon reasonable written notice to QSL, so as not to
disrupt the Terminal’s operations, to: 

  

	 	(i)	make periodic operational inspections of such Terminal; 

  

	 	(ii)	conduct audits of any pertinent books and records, including those related to receipts, delivery, storage and inventories of the RTK’s Product; and

  

	 	(iii)	conduct physical verifications of the amount of RTK’s Product stored at the Terminal. 

 

	4.16	QSL will and will use commercially reasonable efforts to require from the lessor of the land (the “Landlord”) that the Landlord enters into an agreement with
QSL (the “Landlord Agreement”). Such agreement will provide a new lease between the Landlord and QSL covering the real property upon which the Terminal is planned to be built, (ii) provide that in the event of a termination or
invalidation of the lease between QSL and Landlord with respect to such real property underlying the Terminal that the Landlord will enter into a lease directly with RTK on substantially similar terms as the existing lease between QSL and the
Landlord for the balance of the term of the lease that was terminated and (iii) include the rights set forth in Section 8.2 of Schedule A to this Agreement. Such agreement will be initiated between QSL and the Landlord within 60 days of
the date of this Agreement, and executed within a reasonable period of time thereafter, with a copy provided to RTK of such Landlord Agreement. 

  

	4.17	RTK’s right and that of its authorized representatives to enter the Terminals will be exercised by RTK in a way that will not interfere with or diminish QSL’s
control over or its operation of the Terminals and will be subject to reasonable rules and regulations promulgated by QSL. If as a result of any such inspections, audits or verifications, RTK believes that an error or discrepancy exists, RTK shall
provide notice thereof of QSL and thereafter QSL shall promptly take the necessary corrective action to remedy error discrepancy. If such error or discrepancy has resulted in an amount invoiced to RTK in error, then QSL shall make an adjustment on
the next invoice issued by QSL, or if no such invoice is to be forthcoming reimburse RTK for the amount equivalent to the amount charged in error plus applicable interest calculated pursuant to Section 3.4. 

 

	5.	TERM AND TERMINATION 

  

	5.1	Unless earlier terminated as provided for in this Agreement, the initial term of this Agreement is [*] years (the “Initial Term”) commencing on the
date upon which QSL first commences providing the Services to RTK (the “Commencement Date”), provided that in no event shall the Commencement Date be later than eighteen months following the date of execution of the Agreement. Upon
the expiry of the Initial Term, the Agreement shall automatically extend for rolling successive one (1) year terms on the same terms and conditions unless terminated in accordance with the terms of this Agreement. RTK shall have the right to
terminate the Services provided under this Agreement at any time after the [*] year of the Initial Term on 180 days written notice to QSL and upon such termination, RTK shall continue to make the payments to QSL as provided in Section 4.6 but
shall not owe QSL for any Services provided under Section 1.1. The Initial Term of the Agreement and any subsequent one (1) year renewals shall be collectively referred to as the “Term” herein. 

	5.2	In the event of any material breach or material non-performance of this Agreement, the Party claiming breach shall provide written notice to the other Party specifying
the nature of the breach complained of and suggesting measures required to remedy such breach. In the event that the breaching Party has not taken reasonable corrective measures within thirty (30) days’ of receipt of such notice, to the
full satisfaction of the other Party acting reasonably, the Party claiming breach shall have the right immediately to terminate this Agreement, such termination to be without prejudice to the rights and obligations of either Party accrued up to that
time. 

  

	5.3	In the event a Party enters into liquidation or becomes insolvent or makes or enters into a composition with its creditors or has execution levied upon a substantial
part of its assets or should a receiver, trustee or liquidator be appointed in respect of its assets, the other Party shall, at its sole discretion, be entitled immediately to terminate this Agreement, without prejudice to the rights and obligations
accrued up to and including such event. 

  

	5.4	In the event that RTK terminates this Agreement pursuant to Sections 5.2 or 5.3, RTK shall be responsible to pay QSL for only those fees and charges for the Services
provided by QSL up to and including the date of termination and RTK shall have no liability or obligation to make payment for any Infrastructure Costs from the date of termination onwards and shall have no liability or obligation with respect to any
outstanding Infrastructure Costs. 

  

	5.5	In the event that RTK terminates this Agreement pursuant to Sections 5.1, RTK shall be responsible to pay QSL for those fees and charges for the Services provided by
QSL up to and including the date of termination and RTK shall remain obliged and liable to make payment for any remaining Infrastructure Costs. 

  

	6.	RESPONSIBILITY 

  

	6.1	For the purposes of Article 6, the term “care, custody and control” shall for QSL be referring to all times that QSL is dealing with the Product while
carrying out the Services and, for RTK shall be referring to all other times that fall outside such period. 

  

	6.2	QSL shall be liable for damages to or by the Product, including damages caused by contamination, loss by wind, and any other cause or reasons whatsoever, to the extent
such damages to the Product are caused by or arising from the negligence or wilful misconduct of QSL, its employees and agents. 

  

	6.3	QSL shall not be responsible for any foreign objects found in the Product prior to the Product being in QSL’s care, custody and control. 

 

	6.4	Each Party agrees to defend, indemnify and hold harmless the other non-defaulting Party, its affiliates and its agents, directors, officers, employees, successors and
assigns from and against all claims, damages, losses and costs of whatsoever nature, including without limit any third party claims, arising out of, related to, or in connection with, a Party’s breach of this Agreement, the negligence or wilful
misconduct of a Party, its agents or employees, or any non-compliance of a Party with Applicable Law. 

  

	6.5	To the maximum extent permitted by applicable law, in no event will a Party be liable to the other Party for any indirect, special, consequential, punitive or exemplary
damages. 

	7.	INSURANCE 

  

	7.1	QSL shall procure and maintain, at its sole costs and expense, (i) liability insurance coverage with a policy limit of $5,000,000 and (ii) property insurance
coverage with a policy limit equal to at least the replacement value of the Infrastructure Equipment. Such policies shall not be cancelled nor materially changed without a thirty (30) day written notice to RTK. In the event QSL receives
proceeds as a result of making any claims under its property insurance policy, QSL shall use such proceeds to repair or replace the Infrastructure Equipment that were the subject of its insurance claim, or in a manner that permits QSL to continue
providing the Services to RTK. 

  

	8.	FORCE MAJEURE 

  

	8.1	Force Majeure means, in relation to either Party, any event or circumstance beyond the reasonable control of that Party, including but not limited to:

  

	 	(i)	acts of God, fire, explosion, radioactive or other contamination (including contaminative precipitation or contamination to the water table lightening, earthquake,
flood, storm, drought or other extreme weather conditions; 

  

	 	(ii)	acts of warfare whether declared or otherwise, act of public enemy, act or threat of terrorism, revolution, riot or other civil insurrection, public demonstration,
sabotage or act of vandalism; 

  

	 	(iii)	breakdown, damage to, closure or other failure of all or a significant proportion of transportation routes, rail lines, or harbor, ports, berth or other facilities;

  

	 	(iv)	epidemics; 

  

	 	(v)	any government or Governmental Authority requisition, control, intervention, requirement or interference; 

 

	 	(vi)	strikes, lockouts or other work stoppages or slow-downs or other industrial disputes, disturbance or action; 

provided that (i) the event could not have been reasonably prevented or overcome by the Party employing Good Industry Practice, and
(ii) a lack of funds shall not constitute Force Majeure. For avoidance of doubt, Force Majeure events shall not include any event or circumstance that is caused or arises from a mechanical or equipment breakdown of plant machinery or facilities
attributable to normal wear and tear. 
  

	8.2	Subject to Section 8.3, and other than in respect of the obligation to make any payment as required by this Agreement, and any obligations which have accrued prior
to the Force Majeure, a Party shall not be in breach of this Agreement and shall not be liable to the other for any failure to perform an obligation under this Agreement to the extent that, and so long as, the performance of such obligation has been
interfered with, hindered, delayed or prevented by Force Majeure. 

	8.3	The provisions of Section 8.2 shall not apply unless the Party wishing to be relieved from liability under this Agreement (the “Claiming Party”)
has: 

  

	 	(i)	promptly after becoming aware of the occurrence of the event or circumstance giving rise to the Force Majeure claim, notified the other Party (the
“Non-Claiming Party”) in writing of Claiming Party’s intention to seek relief, providing the details of the Force Majeure, estimation of its expected duration and the probable impact on the performance of its obligations
under this Agreement together with all evidence reasonably required to support the existence of the Force Majeure (the “Force Majeure Notice”); 

 

	 	(ii)	used without delay Reasonable Endeavours (the term “Reasonable Endeavours” meaning a requirement to do all that can reasonably be done without
incurring material cost or risking exposure to material loss or other liability provided that any judicial interpretation imposing a lesser or greater standard shall not apply) and continues to use Reasonable Endeavours to rectify the event or
circumstance giving rise to the force majeure claim (to the extent it is able to do so) or otherwise to mitigate the effects of the same, and resume full performance of its obligations under this Agreement; 

 

	 	(iii)	given and continues to give regular reports to the Non-Claiming Party on the status of the Force Majeure (including the effects thereof) and progress in its efforts to
overcome the same; and 

  

	 	(iv)	as soon as reasonably possible after the end of the Force Majeure, notified the Non-Claiming Party in writing that the Force Majeure has ended.

  

	8.4	If the Force Majeure experienced by the Claiming Party continues for twelve (12) months commencing on the date of the Force Majeure Notice, the Non-Claiming Party
may, at its option, at any time during the continuance of such Force Majeure terminate this Agreement and the Parties shall have no further obligations between them save those previously accrued or expressed in this Agreement to survive termination.
If the Parties have agreed a remedial plan under which the Claiming Party will resolve the Force Majeure event the Non-Claiming Party shall not terminate this Agreement during such period as the Claiming Party is actively and diligently complying
with such plan. 

  

	9.	ARBITRATION 

  

	9.1	Should any dispute or question arise between the Parties concerning the interpretation, validity or execution of this Agreement or any part thereof or the rights or
obligations of either one of the Parties pursuant to this Agreement and should the Parties be unable to resolve this dispute or question by agreement among the Parties, this dispute or question shall be submitted by either Party to arbitration in
the following manner: 

  

	 	(i)	The dispute or question shall be settled by binding arbitration in accordance with the Code of Civil Procedure of Quebec by one Party giving notice to the
other Party; 

  

	 	(ii)	Within fifteen (15) days of the notice, the Parties shall mutually agree on the person who will act as the arbitrator. 

 

	 	(iii)	If the Parties cannot agree on the arbitrator, either Party may request that a judge from the Superior Court of Quebec (judicial district of Quebec City) appoints a
suitable arbitrator; 

  

	 	(iv)	The arbitrator shall proceed to investigate the matter in the most expeditious and least formalistic manner possible and shall render his or her decision within thirty
(30) days of hearing the matter, unless the Parties agree otherwise; 

	 	(v)	Should the arbitrator fail to render his or her decision within thirty (30) days of hearing the matter, he or she shall be removed from office and shall be deemed
to have waived his or her fees. 

  

	9.2	The arbitration award shall be final and binding upon the Parties, under the relevant provisions of the Code of Civil Procedure of Quebec.

  

	9.3	The cost of arbitration shall be borne by the Parties equally. 

  

	9.4	The arbitration award as homologated is executory as a judgment of the court. 

 

	10.	MISCELLANEOUS 

  

	10.1	The Preamble and the Schedules shall each form part of this Agreement. The Schedules to this Agreement comprise the following: 

 

	 	(i)	Schedule “A” – Description of the Services; 

  

	 	(ii)	Schedule “B” – List of Non-Working Days 

  

	 	(iii)	Schedule “C” – Characteristics of the Product 

  

	 	(iv)	Schedule “D”—Rates; and 

  

	 	(v)	Schedule “E” – Loading Port Specifications and Requirements. 

 

	10.2	At all times during the term of this Agreement, QSL shall act as an independent contractor and at no time shall QSL be considered an agent, employee, partner or joint
venture with or of RTK. 

  

	10.3	Any notice, delivery, payment or tender of money or document(s) to the Parties hereunder may be delivered personally or sent by prepaid registered or certified mail or
prepaid courier to the following addresses: 

  

			
	to QSL:	 	Geoff Lemont, Vice-President
		
		 	 961 Champlain Blvd.
 Quebec,
QC, G1K 4J9
 e-mail: glemont@qsl.com

		
		 	Fax: 418-522-9770
		
		 	with a copy to:
		
		 	 Jean Gaudreau and Christopher Gauthier
 961 Champlain Blvd.
 Quebec, QC, G1K 4J9

		
		 	e-mails: jgaudreau@qsl.com / cgauthier@qsl.com
		
		 	Fax: 418-522-9761

			
	to RTK:	 	
		
		 	 Sean Ebnet, Senior Vice President
 Rentech, Inc.
 10877 Wilshire Blvd., Suite 600

Los Angeles, CA 90024
 Fax:
310-208-7165

		
		 	With a copy to:
		
		 	General Counsel
		
		 	 Rentech, Inc.
 10877 Wilshire
Blvd., Suite 600
 Los Angeles, CA 90024

Fax: 310-208-7165

 and any such notice, delivery or payment so delivered or sent shall be deemed to
have been given or made and received upon delivery of same or on the third (3rd) business day following the mailing of same, as the case may be. 
  

	10.4	Unless otherwise indicated, all dollar amounts mentioned in this Agreement are in Canadian dollars ($CAD). 

 

	10.5	No waiver by any Party hereto of any breach by any other Party of any of its covenants, agreements or obligations contained in this Agreement shall be or be deemed to
be a waiver of any subsequent breach thereof or the breach of any other covenants, agreements or obligations, nor shall any forbearance by any Party hereto to seek a remedy for any breach by any other party be a waiver by the Party so forbearing of
its rights and remedies with respect to such breach or any subsequent breach. 

  

	10.6	This Agreement constitutes the entire agreement duly executed by the Parties hereto, and no amendment, variation or change to this Agreement shall be binding unless the
same shall be in writing and signed by the Parties hereto. 

  

	10.7	Neither Party may assign this Agreement without the written consent of the other Party, which consent shall not be unreasonably or arbitrarily withheld.

  

	10.8	The rights and liabilities of the Parties shall enure to the benefit of their respective heirs, executors, administrators, successors and assigns, subject to any
requirement for consent by QSL hereunder. 

  

	10.9	The Parties hereto agree that the contents of this Agreement thereof and amendments thereto are confidential and except as required by law or any securities commission,
shall not be disclosed by either Party to any person that is not any affiliate of that Party without the prior written consent of the other Party. Notwithstanding the foregoing, the Parties may disclose the terms of this Agreement to third party
professional advisors such as legal advisors, accounting advisors or potential lenders or financial institutions provided that such third party advisor covenants to keep the terms of the Agreement confidential. 

 

	10.10	Any provision of this Agreement that is unenforceable shall be severed from this Agreement without affecting the remainder of this Agreement. 

 

	10.11	Each of the Parties confirms that it has required that this Agreement be drawn in the English language. Les Parties confirment avoir requis que le présent
contrat soit rédigé en anglais. 

  

	10.12	This Agreement shall be governed and interpreted by the laws of the Province of Quebec and the laws of Canada applicable therein. 

 IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first written
above. 
  

									
	 RTK WP CANADA, ULC
	 		 	 (Q.S.L.) QUEBEC STEVEDORING COMPANY LIMITED

					
	 	 	/s/ Dan J. Cohrs	 		 	 	 	/s/ Denis Dupuis
	Name:	 	Dan J. Cohrs	 		 	Name:	 	Denis Dupuis
	Title:	 	 Chief Financial Officer and

Executive Vice President
	 		 	Title:	 	President

 SCHEDULE “A” 

DESCRIPTION OF THE SERVICES 
  

	1.	DEFINITIONS 

  

	1.1	For the purpose of this Agreement, the following terms shall have the following meanings: 

 

	 	(i)	“Delivery Schedule” means the schedules of Shipments to be made by RTK to its customers; 

 

	 	(ii)	“Demurrage” means the financial compensation payable if time used in completing loading is greater than laytime and payable for all such excess time at a rate
set by a nominated Vessel; 

  

	 	(iii)	“Despatch” means the amount payable, if any, for laytime saved and being a rate equal to fifty per cent (50%) of the Demurrage rate per day or pro-rata
part thereof; 

  

	 	(iv)	“Holiday” means any public holiday which is specified in the Port Requirements in respect of the relevant Loading Port, but does not include Super Holidays;

  

	 	(v)	IMO Code of Safe Practice means the International Maritime Organization Code of Safe Practice for Solid Bulk Cargoes, 2004, as amended or replaced from time to time.

  

	 	(vi)	“Laycan” means the period in which a Vessel must arrive at the Loading Part for the commencement of loading; 

 

	 	(vii)	“Loading Port” means the Port of Quebec; 

  

	 	(viii)	“Port Authority” means the Quebec Port Authority; 

  

	 	(ix)	“Port Requirements” means the requirements of the Port of Quebec; “Shipments” means each shipment of Product to be delivered to RTK’s customer
at the Loading Port as specified in the relevant Delivery Schedule; 

  

	 	(x)	“Super Holiday” means any public holiday during which all loading operations at the Loading Port are suspended and shall include the public holidays specified
in the Port Requirements in respect of the relevant Loading Port and includes the list of non working days set forth in Schedule “B” to this Agreement provided that such Super Holidays will not suspend laytime if a vessel is already on
Demurrage; 

  

	 	(xi)	“Weather Working Day” means any period of twenty-four (24) consecutive hours including Saturdays, Sundays and Holidays but not including Super Holidays
during which weather permits Vessel Loading operations; 

  

	 	(xii)	“Vessel” means a vessel on which the Product is loaded in accordance with this Agreement; 

	 	(xiii)	All other defined terms used in this Schedule “A” shall have the meaning given to them in the body of the Agreement; 

 

	2.	GENERAL SCOPE OF WORK 

  

	2.1	QSL shall carry out the scope of work described in this Schedule “A” for the handling of RTK’s Product export program at the Terminal. QSL shall be
solely responsible for providing all necessary labour, equipment and facilities to carry out such scope of work. 

  

	3.	DELIVERY AND UNLOADING OF RAILCAR OPERATIONS: 

  

	3.1	QSL shall carry out the unloading of the Product from railcars supplied by RTK. The railcar discharge facility to be provided by QSL will be located near wharf [*] and
shall be comprised of such necessary equipment enable the discharge of the Product despite rain or snow. 

  

	3.2	QSL shall unload the rail cars SSHEX within 48 hours of arrival at the Terminal. The operational hours of unloading shall be 8am to 4pm. 

 

	3.3	RTK shall deliver the Product to the Terminal by rail as follows: 

  

	 	(i)	the rail cars shall consist of covered hopper cars with gravity discharge bottom gates for free flow wood pellets; 

 

	 	(ii)	RTK shall work with Canadian National Railway Company (CN) to use commercially reasonable efforts to cause the rail cars to be delivered in blocks of approximately [*]
to [*] rail cars; 

  

	 	(iii)	each block of rail cars shall comprise a minimum average net weight per railcar of 90 Metric Tonnes of Product. The maximum average net weight per railcar permitted
shall be 100 Metric Tonnes of Product. 

  

	4.	TRANSFER AND STORAGE OPERATIONS: 

  

	4.1	QSL shall provide storage facilities for the Product that are suitable in all respects for the handling and storage of wood pellets, that utilize the latest industry
standards, that are dry and clean and which have an effective dust control and fire detection system. 

  

	4.2	The Product shall be transferred from the discharge facility to the storage facility via a covered conveyer system and stockpiled inside the storage facility for dry
and safe storage of the product. 

  

	4.3	In any event, QSL will at all times provide RTK, or its nominee (Drax Power Limited), with a minimum of 75,000 MT of dry and safe storage capacity for the Product.

  

	5.	NOMINATIONS AND VESSEL SPECIFICATIONS 

  

	5.1	The specifications and requirements of the Loading Port that shall apply to all Vessels arriving to collect Product shall consist of those requirements set out in
Schedule “E” – Loading Port Specifications and Requirements. QSL shall advise RTK immediately in the event that any of said specifications and requirements change. 

	5.2	As soon as is reasonably possible RTK shall provide QSL with a Delivery Schedule for the subsequent twelve month period. The Delivery Schedule shall be based on a
fairly evenly phased delivery schedule over the duration of each twelve month period based on a shipment volume of between [*] Tonnes +/- 10% per shipment at RTK’s sole option. The Delivery Schedule shall comprise the number of Shipments,
the tonnage intake for each Shipment and the proposed fourteen (14) day Loading Port Laycans for each Shipment. 

  

	5.3	Vessels will be loaded on a first come, first serve basis as directed by the Port Authority or by QSL as applicable, provided that QSL shall in good faith cooperate
with RTK in the setting of the Delivery Schedule and in confirming the Laycans for RTK customer vessels such that any conflict between any of RTK’s customer vessel arrivals and those of a third party wishing to load or unload at the Terminal,
are avoided. 

  

	5.4	Not less than six (6) months prior the anticipated arrival of each Vessel at the Loading Port, QSL shall notify RTK of: 

 

	 	(a)	any changes to the Port Requirements, such changes to be subject to the agreement of RTK, such agreement not to be unreasonably withheld; and 

 

	 	(b)	any changes to the Loading Port restrictions and maximum dimensions of vessels permitted to load Product at the Loading Port, including maximum length, beam, draught
and air draught limits. 

  

	5.5	Not less than thirty (30) days prior to the start of the original Laycan specified in the Delivery Schedule for the Product to be loaded at the Loading Port, QSL
shall work cooperatively with RTK to enable RTK to confirm to RTK’s customer a fourteen (14) day Laycan when the Product will be available at the Loading Port in order to allow the RTK’s customer to fix an appropriate Vessel to lift
the Product. Such confirmed Laycan shall start within the original Laycan specified in the Delivery Schedule. 

  

	5.6	Not less than fourteen (14) days prior to the start of the Laycan notified by the RTK to its customer in accordance with Section 5.5, RTK shall notify QSL of
the following details in writing and shall confirm the fourteen (14) day arrival Laycan selected by its customer: 

  

	 	(i)	the name of the Vessel; 

  

	 	(ii)	the age, flag, class, dimensional characteristics including deadweight tonnage, beam, length overall, number and size of cargo holds and hatches, if part cargo, spaces
available for loading Product, anticipated cargo lift +/- 10% and draught of such Vessel 

  

	 	(iii)	the estimated time and date of arrival of the Vessel at the Loading Port; and 

 

	 	(iv)	the Demurrage and Despatch rates of the Vessel. 

  

	5.7	RTK may substitute the Vessel notified under Section 5.6 with another vessel provided: 

 

	 	(i)	it notifies QSL in writing not less than three (3) days prior to the arrival of the Vessel at the Loading Port of the details set out in Section 5.6 above in
relation to the substitute Vessel; 

	 	(ii)	the estimated time and date of arrival of the substitute Vessel is no earlier than the estimated time and date of arrival of the original Vessel.

  

	5.8	RTK shall notify QSL of the estimated time and date of arrival of the Vessel at the Load Port not later than at the following intervals prior to the expected time of
arrival of the Vessel: 

  

	 	(i)	seventy-two (72) hours; 

  

	 	(ii)	forty eight (48) hours; and 

  

	 	(iii)	twenty four (24) hours. 

  

	5.9	On or before the arrival of a Vessel at the Loading Port, QSL shall secure for the Vessel safe access to, and a berth at, wharf [*] located in the Anse-au-Foulon
(Wolfe’s Cove) Sector of the Loading Port. 

  

	6.	VESSEL LOADING: 

  

	6.1	The Product shall be reclaimed from the storage facility and transferred via a covered conveyer to the ship loading system. The loading sequence will be defined by a
vessel’s representative. Once loading operations are completed the dock and infrastructure shall be cleaned. 

  

	6.2	QSL shall load Product onto nominated vessels 24 hours per day at a minimum rate of [*] Tonnes per Weather Working Day, Saturdays, Sundays and Holidays included (Super
Holidays excluded however, once on Demurrage, always on Demurrage)(the “Loading Rate”) for SupraMax and Panamax Size Ships with net loaded volume exceding [*] metric tonnes of wood pellets. . Where the shipments are less than [*]
tonnes, the following shall apply: 

  

	 	•	 	 Less than [*] tonnes, minimum loading rate to be negotiated 

 

	 	•	 	 Greater than [*] tonnes to [*] tonnes, minimum loading rate of [*] tonnes per day 

 

	 	•	 	 Greater than [*] tonnes to [*] tonnes, minimum loading rate of [*] tonnes per day 

 

	 	•	 	 Greater than [*] tonnes to [*] tonnes, minimum loading rate of [*] tonnes per day 

 

	 	•	 	 Greater than [*] tonnes to [*] tonnes, minimum loading rate of [*] tonnes per day 

 

	6.3	Vessels to be loaded will be gearless bulk carriers, geared bulk carriers (only those that the gear will not interfere with ship loading) light bulk carriers or
modified chip carriers. 

  

	6.4	QSL shall load all Vessels at the Terminal in compliance with the IMO Code of Safe Practice and all Applicable Laws. QSL shall provide and use the following dedicated
equipment to load the Vessels 

  

	6.5	QSL shall procure that any agent, inspector or cargo surveyor appointed by the RTK (or RTK’s customers) to act on behalf of RTK (or RTK’s customers) at the
Terminal shall be granted such reasonable access to facilities, information and documentation as they may request, subject to complying with any applicable safety restrictions and not delaying or hindering loading operations in any way.

	6.6	QSL shall ensure that all loading and trimming operations are carried out and completed to the master of the Vessel’s satisfaction via spout trimming methods.

  

	6.7	QSL shall ensure that any and all claims for property or other damage, loss or costs incurred by QSL or the Port Authority in connection with loading a shipment of
Product at the Loading Port and caused by the master or crew of a Vessel shall be brought by QSL and/or such Port Authorities directly against the owner of the Vessel and no claims in this regard shall be brought against RTK or its customers by any
party. QSL will ensure that such claims are notified to the master of the Vessel, if any, in writing within a reasonable time, and at the latest before departure from the Loading Port. RTK agrees to provide reasonable assistance to ensure an
equitable and timely settlement to any such dispute is reached. 

  

	6.8	All claims for damages to the Vessel occurring during loading or through improper or negligent stowage of the Product shall be settled directly between QSL and/or such
Loading Port authorities and Vessel owner, without recourse against RTK or its agents. The RTK will ensure that the master of the Vessel notifies the Loading Port Authorities of damage, if any, in writing within a reasonable time, and at the latest
before departure from the Loading Port. RTK agrees to provide reasonable assistance to ensure an equitable and timely settlement to any such dispute is reached. In the event that the damage affects the seaworthiness of the Vessel, laytime and time,
if any, on Demurrage, will continue to count. 

  

	7.	LAYTIME 

  

	7.1	Upon arrival at the Loading Port, RTK shall cause the Notice of Readiness (“NOR”) to be tendered by the master of the Vessel at any time of day or night
(Saturdays, Sundays and Holidays included, excluding Super Holidays) at the place where NOR is customarily tendered, as presented in Schedule E. 

  

	7.2	Unless otherwise specified in Port Requirements in relation to the Loading Port, laytime shall commence: 

 

	 	(i)	At the start of the first shift following the next available labor call following the tendering of the Notice of Readiness; or if earlier 

 

	 	(ii)	the actual commencement of loading at the Loading Port, in which case actual time shall be used to count. 

 

	7.3	Laytime and/or Demurrage shall cease on completion of loading of the Shipment to the master of the Vessel’s satisfaction. 

 

	7.4	Laytime allowed for loading shall be the Shipment weight as set forth in the Loading Port weight certificate issued by the independent marine surveyor appointed by RTK
divided by the Loading Rate. 

  

	7.5	The following shifting time, stoppages and/or interruptions to loading shall not count as laytime unless the Vessel is already on demurrage in which case time will
count: 

  

	 	(i)	any time lost due to the breakdown, inefficiency, repairs or any other inability of, or cause attributable to the Vessel, her master, her crew or owners which affects
the berthing and loading of the Vessel; 

	 	(ii)	any time lost due to RTK (or the owner or operator or charterer of the Vessel) preventing, impeding or prohibiting loading; 

 

	 	(iii)	any governmental authority or port authority preventing, impeding or prohibiting loading; 

 

	 	(iv)	any time lost due to any labour dispute, strike, go slow, work to rule, lock out, stoppage or restraint of labour involving the master, officers or crew of the Vessel;

  

	 	(v)	any time lost due to non-compliance with statutory and class requirements for the Vessel; 

 

	 	(vi)	for delays in loading the Product due to the Vessel not complying with stevedoring regulations (provided RTK has been notified of such regulation in advance) relevant
to the operation of the Loading Port; 

  

	 	(vii)	in the event of weather conditions which, in the reasonable opinion of either the Loading Port or the master, make loading unsafe and where the Loading Port has to
cease loading, whether the Vessel is in berth or not or in port or not; 

  

	 	(viii)	any time lost if loading is interrupted by the Vessel in order to conduct business on behalf of the owner (such as taking draught surveys); 

 

	 	(ix)	during Super Holidays; and 

  

	 	(x)	any time lost due to Force Majeure. 

  

	7.6	Where the Vessel is alongside the Loading Port berth and is ready to load the Shipment QSL shall be liable and shall hold RTK harmless for any delays due:

  

	 	(i)	to the unavailability of Product caused by QSL; 

  

	 	(ii)	breakdown and/or inefficiency of the Loading Port, including but not limited to, the operation of the Loading Port, Loading Port cranes, stevedores or other loading
equipment, which delays the loading of the Shipment; 

  

	 	(iii)	and in such event laytime will continue to run, and Demurrage will accrue. 

 

	7.7	QSL shall pay Demurrage to RTK for all excess time at the rate per day pro rata notified in accordance with Section 5.6(iv), provided that RTK gives notice of its
claim in writing to QSL, with such relevant supporting documentation as is available, within thirty (30) days after completion of loading. QSL shall pay any undisputed Demurrage no later than five (5) Business Days following QSL’s
receipt of such notice. 

  

	7.8	Rentech shall pay Despatch to QSL for all time saved at the rate per day notified in accordance with paragraph 5.6(iv), provided that QSL gives notice of its claim in
writing to RTK, with such relevant supporting documentation as is available, within sixty (60) days after completion of loading of a Shipment. RTK shall pay any undisputed Despatch no later than five (5) Business Days following RTK’s
receipt of such notice. 

  

	7.9	Articles 6 and 7 of this Schedule “A” shall survive the termination or expiry of the Agreement. 

	8.	THROUGHPUT CAPACITY AND RIGHT OF FIRST REFUSAL TO EXPAND 

  

	8.1	QSL guarantees that, based on the Infrastructure anticipated by this Agreement, RTK, or its nominee, shall upon request, have the right to throughput through the
Terminal an annual amount of Product of up to [*] per year for each year. 

  

	8.2	QSL agrees that RTK, or Drax Power Limited (Drax) as RTK’s sole permitted assignee, shall have the exclusive option to expand the storage capacity connected to
existing Infrastructure onto any vacant land adjacent to the Terminal that is controlled or leased by QSL and of a size sufficient to build approximately [*] of Product storage and have the potential to be connected to the shiploader which is part
of the Infrastructure Equipment (such property, “Adjacent Land”). In addition, in the event that (1) QSL is considering granting use rights to any Adjacent Land to a third party, (2) it is considering developing such lands
for its own use, or (3) receives any bona fide offer from a third party to use the Adjacent Land that it is willing to accept, QSL shall provide immediate written notice to RTK of such offer and provide RTK with 60 days to decide whether it
wishes to exercise its option to expand the storage capacity connected to existing Infrastructure onto Adjacent Land. RTK may assign the option right to Drax. If RTK or Drax accepts, the notice given by it shall constitute a binding agreement and
RTK (or Drax) and QSL shall enter into an expansion agreement on mutually agreeable terms. In the event that within 60 days, RTK or Drax is not in a position to make a commitment on the land required for additional storage, RTK or Drax will
have the ability to secure an option on the Adjacent Land for a period of up to three years in accordance with terms to be negotiated with QSL or the Landlord, if necessary. 

 SCHEDULE “B” 

List of Non-Working Days (Super Holidays) 

 SCHEDULE “C” 

CHARACTERISTICS OF THE PRODUCT 

 SCHEDULE “D” 

RATES 

 Schedule E 
 Loading Port Specifications and RequirementsEX-10.1

 Exhibit 10.1 
 NATUS MEDICAL INCORPORATED 
 JONATHAN A. KENNEDY EMPLOYMENT AGREEMENT

 This Agreement is entered into as of April 8, 2013 (the “Effective Date”), by and between Natus Medical,
Incorporated (“Company”), and Jonathan A. Kennedy (“Employee”). 
 1. Duties and Scope of Employment. 

(a) Positions and Duties. As of the Effective Date, Employee will serve as Chief Financial Officer (“CFO”).
Employee will render such business and professional services in the performance of his duties, consistent with Employee’s position within the Company, as shall reasonably be assigned to him by the Company’s Chief Executive Officer
(“CEO”). The period of Employee’s employment under this Agreement is referred to herein as the “Employment Term.” 
 (b) Obligations. During the Employment Term, Employee will perform his duties faithfully and to the best of his ability and will devote his full business efforts and time to the Company.
For the duration of the Employment Term, Employee agrees not to actively engage in any other employment, occupation or consulting activity for any direct or indirect remuneration without the prior approval of the CEO. 

2. At-Will Employment. The parties agree that Employee’s employment with the Company will be “at-will” employment and may
be terminated at any time with or without cause or notice. Employee understands and agrees that neither his job performance nor promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for
modification, amendment, or extension, by implication or otherwise, of his employment with the Company. 
 3. Compensation.

 (a) Base Salary. During the Employment Term, the Company will pay Employee an annual salary of $340,000 as
compensation for his services (the “Base Salary”). The Base Salary will be paid periodically in accordance with the Company’s normal payroll practices and be subject to the usual, required withholding. Employee’s salary will be
subject to review and adjustments will be made based upon the Company’s normal performance review practices. 
 (b)
Performance Bonus. Employee shall be eligible to receive a cash bonus pursuant to the Company’s Executive Management Incentive Plan of up to 65% (at 100%) of base salary, contingent on Company performance. 

(c) Sign-on Bonus. In addition, the Company will offer a sign-on bonus in the amount of $50,000 payable within 30 days of your
start date. 
 (d) Equity Awards. Subject to approval by the Board of Directors, Employee shall
receive the following equity awards: Employee shall receive options to purchase 100,000 shares of Company Common Stock Employee’s, pursuant to and governed by the terms of the Company’s 2011 Stock Awards Plan (“2011 Plan”), with
an exercise price at the date of grant determined in accordance with the 2011 Plan. Vesting begins six (6) months from and is retroactive to Employee’s start date. Stock vests at
1/48th per month. Notwithstanding any other provision
of the Agreement, under no circumstances shall Employee have any right to exercise stock options before Employee has completed one-hundred-eighty-days of employment. Employee shall also receive 50,000 shares of restricted stock pursuant to and
governed by the terms of the 2011 Plan, which shares shall vest at the rate of 50% on the second anniversary of the grant, 25% on the third anniversary of the grant, and the final 25% on the fourth anniversary of the grant. Employee shall be
eligible for future equity awards commencing in 2013, as determined by the Company’s Compensation Committee. 
 4. Employee
Benefits. During the Employment Term, Employee will be entitled to participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to other employees of the Company, including, without
limitation, the Company’s group medical, dental, vision, disability, life insurance, and flexible-spending account plans consistent with the terms of such plans. The Company reserves the right to cancel or change the benefit plans and programs
it offers to its employees at any time. 

 5. Paid Time Off (“PTO”). Employee is entitled to receive PTO pursuant to
Natus’ standard benefit policy currently and hereafter maintained by the Company, and as may be cancelled or changed from time to time. 

6. Expenses. The Company will reimburse Employee for reasonable travel, entertainment or other expenses incurred by Employee in the
furtherance of or in connection with the performance of Employee’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to time. 
 7. Severance. 
 (a) Involuntary Termination. If
Employee’s employment with the Company terminates other than for “Cause” (as defined herein), death or disability, and Employee signs and does not revoke a standard release of claims with the Company, then, subject to Section 11,
Employee shall be entitled to (i) receive continuing payments of severance pay (less applicable withholding taxes) at a rate equal to his Base Salary rate, as then in effect, for a period equal to twelve (12) months from the date of
Employee’s “separation from service” (as defined in Treas. Reg. 1.409A-1(h)) with the Company, to be paid periodically in accordance with the Company’s normal payroll policies and commencing with the latest payroll date that is
also within seventy (70) days from the date of “separation from service” provided that the required release is effective on such date (with payments that would have been made on earlier payroll dates, but for this provision, cumulated
and paid on such payroll date); (ii) the immediate vesting and exercisability of 100% of the shares subject to all of Executive’s stock options and restricted stock (whether currently outstanding or granted in following the Effective Date)
outstanding on the date of such termination (the “Stock Options”) and (iii) continued payment by the Company of the group health continuation coverage premiums for Executive’s eligible dependents under Title X of the Consolidated
Budget Reconciliation Act of 1985, as amended (“COBRA”) as in effect through the lesser of (x) twelve (12) months from the effective date of such termination, (y) the date upon which Executive and Executive’s eligible
dependents become covered under similar plans , or (z) the date Executive no longer constitutes a “Qualified Beneficiary” (as such term is defined in Section 4980B(g) of the Internal Revenue Code of 1986, as amended (the
“Code”); provided, however, that Executive will be solely responsible for electing such coverage within the required time periods. 
 (b) Voluntary Termination; Termination for Cause. If Employee’s employment with the Company terminates voluntarily by Employee (other than as described in subsection (c) below)
or for Cause by the Company or due to Employee’s death or disability, then (i) all vesting of Stock Options and restricted stock and restricted stock units will immediately cease, (ii) all payments of compensation by the Company to
Employee hereunder will terminate immediately (except as to amounts already earned), and (iii) Employee will only be eligible for severance benefits, if any, in accordance with the Company’s established policies as then in effect.

 (c) Change of Control Benefits. If within six (6) months following a “Change of Control” (as
defined below) (i) Employee terminates Employee’s employment with the Company for Good Reason after providing the Company with written notice within the ninety (90) days after the occurrence of an event constituting Good Reason and an
opportunity for the Company to cure such occurrence of not less than thirty (30) days, or (ii) the Company or the successor corporation terminates Employee’s employment with the Company for other than Cause, death or disability, then
Employee shall be entitled to the benefits provided for in subsection (a). Employee shall only be permitted to receive the benefits provided for in subsection (a) once and shall not be permitted to claim such benefits under both subsection
(a) and (c) such that Employee would receive the benefits pursuant to subsection (a) twice. The payment-characterization provisions made under subsection (a) above for purposes of Section 409A of the Code shall apply as
well. 
 8. Limitation on Payments. In the event that the severance and other benefits provided for in this Agreement or
otherwise payable to the Employee (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 8, would be subject to the excise tax imposed by Section 4999 of
the Code, then the Employee’s severance benefits under Section 4(a)(i) shall be either: 
  

	 	•	 	 delivered in full, or 

  

	 	•	 	 delivered as to such lesser extent which would result in no portion of such severance benefits being subject to excise tax under Section 4999 of
the Code, 

  

	 	•	 	 whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by
Section 4999, results in the receipt by Employee on an after-tax basis, of the 

  
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greatest amount of severance benefits, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code. Unless the Company and Employee
otherwise agree in writing, any determination required under this Section 8 shall be made in writing by the Company’s independent public accountants immediately prior to Change of Control (the “Accountants”), whose determination
shall be conclusive and binding upon Employee and the Company for all purposes. For purposes of making the calculations required by this Section 8, the Accountants may make reasonable assumptions and approximations concerning applicable taxes
and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Employee shall furnish to the Accountants such information and documents as the Accountants may reasonably
request in order to make a determination under this Section. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 8. If payment is to be in a lesser amount then
reduction shall occur in the following order: (i) reduction of payments of cash; and (ii) reduction in equity awards; and in each category reduction shall be pro rata between those payments subject to Section 409A and payments not
subject to Section 409A. 

 9. Definitions. 

(a) Cause. For purposes of this Agreement, “Cause” shall mean (i) any act of personal dishonesty taken by
Employee in connection with his responsibilities as an employee and intended to result in substantial personal enrichment of Employee, (ii) Employee’s conviction of a felony, (iii) a willful act by Employee which constitutes gross
misconduct and which is injurious to the Company, or (iv) continued substantial violations by Employee of Employee’s employment duties which are demonstrably willful and deliberate on Employee’s part after there has been delivered to
Employee a written demand for performance from the Company which specifically sets forth the factual basis for the Company’s belief that Employee has not substantially performed Employee’s duties. 

(b) Change of Control. For purposes of this Agreement, “Change of Control” of the Company is defined as:

 (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then
outstanding voting securities; or 
 (ii) a change in the composition of the Board occurring within a two-year period, as a
result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” will mean directors who either (A) are directors of the Company as of the date hereof, or (B) are elected, or nominated for
election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but will not include an individual whose election or nomination is in connection with an actual or
threatened proxy contest relating to the election of directors to the Company); or 
 (iii) the date of the consummation of
a merger or consolidation of the Company with any other corporation that has been approved by the stockholders of the Company, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than forty percent (40%) of the total voting power represented by the voting securities of the
Company or such surviving entity outstanding immediately after such merger or consolidation, or the stockholders of the Company approve a plan of complete liquidation of the Company; or 

(iv) the date of the consummation of the sale or disposition by the Company of all or substantially all the Company’s assets.

 (c) Good Reason. For purposes of this Agreement, “Good Reason” shall mean any of the following
actions taken without the Employee’s express written consent: (i) the material reduction of the Employee’s duties or responsibilities relative to Employee’s duties or responsibilities in effect immediately prior to such
reduction; provided, however, that a reduction in duties or responsibilities solely by virtue of the Company being acquired and made part of a larger entity (as, for example, when the Chief Financial Officer of Natus Medical Incorporated remains as
such following a Change of Control and is not made the Chief Financial Officer of the acquiring 

  
 Page 3 of 8

 
corporation) shall not constitute “Good Reason;” (ii) a material reduction by the Company in Employee’s annual Base Salary as in effect immediately prior to such reduction;
(iii) a material reduction by the Company in the kind or level of employee benefits to which Employee is entitled immediately prior to such reduction with the result that Employee’s overall benefits package is significantly reduced;
(iv) the relocation of Employee’s primary place of work to a facility or a location that increases Employee’s commute distance by more than 35 miles from Employee’s then primary place of work ; or (v) the material breach of
this Agreement by the Company (including, but not limited to, failure of the Company to obtain the assumption of this Agreement by any successors contemplated in Section 12). 
 10. Confidential Information. Employee agrees to enter into the Company’s standard Confidential Information and Invention Assignment Agreement (the “Confidential Information
Agreement”) upon commencing employment hereunder. 
 11. Conditional Nature of Severance Payments. 

(a) Noncompete. Employee acknowledges that the nature of the Company’s business is such that if Employee were to
become employed by, or substantially involved in, the business of a competitor of the Company following the termination of Employee’s employment with the Company, it would be very difficult for Employee not to rely on or use the Company’s
trade secrets and confidential information. Thus, to avoid the inevitable disclosure of the Company’s trade secrets and confidential information, Employee agrees and acknowledges that Employee’s right to receive the severance payments set
forth in Section 7 (to the extent Employee is otherwise entitled to such payments) shall be conditioned upon Employee not directly or indirectly engaging in (whether as an employee, consultant, agent, proprietor, principal, partner,
stockholder, corporate officer, director or otherwise), nor having any ownership interest in or participating in the financing, operation, management or control of, any person, firm, corporation or business that competes with Company or is a
customer of the Company. Upon any breach of this section, all severance payments pursuant to this Agreement shall immediately cease. 
 (b) Non-Solicitation. Until the date eighteen (18) months after the termination of Employee’s employment with the Company for any reason, Employee agrees not, either directly or
indirectly, to solicit, induce, attempt to hire, recruit, encourage, take away, hire any employee of the Company or cause an employee to leave his or her employment either for Employee or for any other entity or person. Additionally, Employee
acknowledges that Employee’s right to receive the severance payments set forth in Section 7 (to the extent Employee is otherwise entitled to such payments) are contingent upon Employee complying with this Section 10(b) and upon any
breach of this section all severance payments pursuant to this Agreement shall immediately cease. 
 (c) Understanding
of Covenants. Employee represents that Employee (i) is familiar with the foregoing covenants not to compete and not to solicit, and (ii) is fully aware of Employee’s obligations hereunder, including, without limitation, the
reasonableness of the length of time, scope and geographic coverage of these covenants. 
 12. Code Section 409A. For purposes of
this Agreement, a termination of employment will be determined consistent with the rules relating to a “separation from service” as defined in Section 409A of the Code and the regulations thereunder (“Section 409A”).
Notwithstanding anything else provided herein, to the extent any payments provided under this Agreement in connection with Employee’s termination of employment constitute deferred compensation subject to Section 409A, and Employee is
deemed at the time of such termination of employment to be a “specified employee” under Section 409A, then such payment shall not be made or commence until the earlier of (i) the expiration of the 6-month period measured from
Employee’s separation from service from the Company or (ii) the date of Employee’s death following such a separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse
tax treatment to Employee including, without limitation, the additional tax for which Employee would otherwise be liable under Section 409A(a)(1)(B) in the absence of such a deferral. The first payment thereof will include a catch-up payment
covering the amount that would have otherwise been paid during the period between Employee’s termination of employment and the first payment date but for the application of this provision, and the balance of the installments (if any) will be
payable in accordance with their original schedule. To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder comply with
Section 409A. To the extent any payment under this Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an
exemption from Section 409A under another provision of Section 409A. Payments pursuant to this section 

  
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are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. Except as otherwise expressly provided herein, to the extent any expense
reimbursement or the provision of any in-kind benefit under this Agreement is determined to be subject to Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one
calendar year shall not affect the expenses eligible for reimbursement in any other taxable year (except for any lifetime or other aggregate limitation applicable to medical expenses), in no event shall any expenses be reimbursed after the last day
of the calendar year following the calendar year in which the Employee incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit.

 13. Assignment. This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors and legal
representatives of Employee upon Employee’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For this purpose,
“successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company. None
of the rights of Employee to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution. Any other attempted assignment, transfer, conveyance or other
disposition of Employee’s right to compensation or other benefits will be null and void. 
 14. Notices. All notices,
requests, demands and other communications called for hereunder shall be in writing and shall be deemed given (i) on the date of delivery if delivered personally, (ii) one (1) day after being sent by a well established commercial
overnight service, or (iii) four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the
parties may later designate in writing: 
 If to the Company: 

Natus Medical, Inc. 
 1501 Industrial Road 
 San Carlos, CA 94070 

Attn: James Hawkins Chief Executive Officer 

If to Employee: 
 at the last residential address known by the Company. 
 15. Severability. In the
event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement will continue in full force and effect without said provision. 

16. Arbitration. 

(a) General. In consideration of Employee’s service to the Company, its promise to arbitrate all employment related
disputes and Employee’s receipt of the compensation, pay raises and other benefits paid to Employee by the Company, at present and in the future, Employee agrees that any and all controversies, claims, or disputes with anyone (including the
Company and any employee, officer, director, shareholder or benefit plan of the Company in their capacity as such or otherwise) arising out of, relating to, or resulting from Employee’s service to the Company under this Agreement or otherwise
or the termination of Employee’s service with the Company, including any breach of this Agreement, shall be subject to binding arbitration under the Arbitration Rules set forth in California Code of Civil Procedure Section 1280 through
1294.2, including Section 1283.05 (the “Rules”) and pursuant to California law. Disputes which Employee agrees to arbitrate, and thereby agrees to waive any right to a trial by jury, include any statutory claims under state or federal
law, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the California Fair
Employment and Housing Act, the California Labor Code, claims of harassment, discrimination or wrongful termination and any statutory claims. Employee further understands that this Agreement to arbitrate also applies to any disputes that the Company
may have with Employee. 

  
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 (b) Procedure. Employee agrees that any arbitration will be administered by
the American Arbitration Association (“AAA”) and that a neutral arbitrator will be selected in a manner consistent with its National Rules for the Resolution of Employment Disputes. The arbitration proceedings will allow for discovery
according to the rules set forth in the National Rules for the Resolution of Employment Disputes or California Code of Civil Procedure. Employee agrees that the arbitrator shall have the power to decide any motions brought by any party to the
arbitration, including motions for summary judgment and/or adjudication and motions to dismiss and demurrers, prior to any arbitration hearing. Employee agrees that the arbitrator shall issue a written decision on the merits. Employee also agrees
that the arbitrator shall have the power to award any remedies, including attorneys’ fees and costs, available under applicable law. Employee understands the Company will pay for any administrative or hearing fees charged by the arbitrator or
AAA except that Employee shall pay the first $200.00 of any filing fees associated with any arbitration Employee initiates. Employee agrees that the arbitrator shall administer and conduct any arbitration in a manner consistent with the Rules and
that to the extent that the AAA’s National Rules for the Resolution of Employment Disputes conflict with the Rules, the Rules shall take precedence. 
 (c) Remedy. Except as provided by the Rules, arbitration shall be the sole, exclusive and final remedy for any dispute between Employee and the Company. Accordingly, except as provided
for by the Rules, neither Employee nor the Company will be permitted to pursue court action regarding claims that are subject to arbitration. Notwithstanding, the arbitrator will not have the authority to disregard or refuse to enforce any lawful
Company policy, and the arbitrator shall not order or require the Company to adopt a policy not otherwise required by law that the Company has not adopted. 
 (d) Availability of Injunctive Relief. In addition to the right under the Rules to petition the court for provisional relief, Employee agrees that any party may also petition the court
for injunctive relief where either party alleges or claims a violation of this Agreement or the Confidentiality Agreement or any other agreement regarding trade secrets, confidential information, nonsolicitation or Labor Code §2870. In the
event either party seeks injunctive relief, the prevailing party shall be entitled to recover reasonable costs and attorneys’ fees. 
 (e) Administrative Relief. Employee understands that this Agreement does not prohibit Employee from pursuing an administrative claim with a local, state or federal administrative body
such as the Department of Fair Employment and Housing, the Equal Employment Opportunity Commission or the workers’ compensation board. This Agreement does, however, preclude Employee from pursuing court action regarding any such claim.

 (f) Voluntary Nature of Agreement. Employee acknowledges and agrees that Employee is executing this
Agreement voluntarily and without any duress or undue influence by the Company or anyone else. Employee further acknowledges and agrees that Employee has carefully read this Agreement and that Employee has asked any questions needed for Employee to
understand the terms, consequences and binding effect of this Agreement and fully understand it, including that Employee is waiving Employee’s right to a jury trial. Finally, Employee agrees that Employee has been provided an opportunity to
seek the advice of an attorney of Employee’s choice before signing this Agreement. 
 17. Integration. This Agreement,
together with the any Company stock awards plan pursuant to which stock options, restricted stock, restricted stock units or other equity awards have been made to Employee, any agreements representing any such equity awards, and the Confidential
Information Agreement represents the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral. No waiver, alteration, or modification of any
of the provisions of this Agreement will be binding unless it is in writing and specifically mentions this Section 16 and it is signed by duly authorized representatives of the parties hereto. 

18. Waiver of Breach. The waiver of a breach of any term or provision of this Agreement, which must be in writing, shall not operate as
or be construed to be a waiver of any other previous or subsequent breach of this Agreement. 
 19. Headings. All captions and
section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement. 
 20. Tax
Withholding. All payments made pursuant to this Agreement will be subject to withholding of applicable taxes. 

  
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 21. Governing Law. This Agreement will be governed by the laws of the State of California
(with the exception of its conflict of laws provisions). 
 22. Acknowledgment. Employee acknowledges that he has had the
opportunity to discuss this matter with and obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this
Agreement. 
 23. Counterparts. This Agreement may be executed in counterparts, and each counterpart shall have the same force
and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. 

[Signature Page to Follow] 

  
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 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by their
duly authorized officers, as of the day and year first above written. 
  

									
	COMPANY:	 		 		 	
	NATUS MEDICAL INCORPORATED	 		 		 	
					
	By:	 	  /s/ Jim Hawkins
	 		 	Date:	 	  

		 	Jim Hawkins	 		 		 	
					
	Title:	 	Chief Executive Officer	 		 		 	
				
	EMPLOYEE:	 		 		 	
				
	  /s/ Jonathan A. Kennedy
	 		 	Date:	 	  

	Jonathan A. Kennedy	 		 		 	

 [Signature Page to Employment Agreement] 

  
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