Document:

Exhibit

NATUS MEDICAL INCORPORATED
2018 EQUITY INCENTIVE PLAN
NOTICE OF PERFORMANCE RESTRICTED STOCK UNIT AWARD
 
Unless otherwise defined herein, the terms defined in the Natus Medical Incorporated (the “Company”) 2018 Equity Incentive Plan (the “Plan”) will have the same meanings in this Notice of Performance Restricted Stock Unit Award and the electronic representation of this Notice of Performance Restricted Stock Unit Award established and maintained by the Company or a third party designated by the Company (this “Notice”).
Name:    
Address:    
You (the “Participant”) have been granted an award of Performance Restricted Stock Units (“PSUs”) under the Plan subject to the terms and conditions of the Plan, this Notice and the attached Performance Restricted Stock Unit Award Agreement (the “Agreement”), including any applicable country-specific provisions in any appendix attached hereto (the “Appendix”), and the performance based terms and conditions set forth in Exhibit A to the Agreement (“Exhibit A”), which both constitute part of the Agreement.
Grant Number:            
Target Number of PSUs:    
Date of Grant:    
Performance Commencement Date:    
		
	Expiration Date:
	The earlier to occur of: (a) the date on which settlement of all PSUs granted hereunder occurs, and (b) the tenth anniversary of the Date of Grant.  This PSU expires earlier if Participant’s Service terminates earlier, as described in the Agreement.

		
	Vesting Schedule:  
	Subject to the limitations set forth in this Notice, the Plan, and the Agreement, the PSUs will vest in accordance with the performance based terms and conditions set forth in Exhibit A.

By accepting (whether in writing, electronically or otherwise) the PSUs, Participant acknowledges and agrees to the following: 

		
	1)
	Participant understands that Participant’s Service with the Company or a Parent, Subsidiary, or Affiliate is for an unspecified duration, can be terminated at any time (i.e., is “at-will”), except where otherwise prohibited by applicable law, and that nothing in this Notice, the Agreement, or the Plan changes the nature of that relationship.  Participant acknowledges that the vesting of the PSUs pursuant to this Notice is subject to Participant’s continuing Service as an Employee, Director or Consultant.  Participant agrees and acknowledges that the Vesting Schedule may change prospectively in the event that Participant’s Service status changes between full- and part-time and/or in the event the Participant is on a leave of absence, in accordance with Company policies relating to work schedules and vesting of Awards or as determined by the Committee.  

		
	2)
	This grant is made under and governed by the Plan, the Agreement, and this Notice, and this Notice is subject to the terms and conditions of the Agreement and the Plan, both of which are incorporated herein by reference.  Participant has read the Notice, the Agreement, and the Plan.  

		
	3)
	Participant has read the Company’s Insider Trading Policy, and agrees to comply with such policy, as it may be amended from time to time, whenever Participant acquires or disposes of the Company’s securities.  

		
	4)
	By accepting the PSUs, Participant consents to electronic delivery and participation as set forth in the Agreement.

		
	PARTICIPANT
	NATUS MEDICAL INCORPORATED

    
        
24410/00003/FW/10463937.1

		
	Signature: 
	        By:    

		
	Print Name: 
	        Its:     

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NATUS MEDICAL INCORPORATED
2018 EQUITY INCENTIVE PLAN
PERFORMANCE RESTRICTED STOCK UNIT AWARD AGREEMENT

Unless otherwise defined in this Performance Restricted Stock Unit Award Agreement (this “Agreement”), any capitalized terms used herein will have the same meaning ascribed to them in the Natus Medical Incorporated 2018 Equity Incentive Plan (the “Plan”). 
Participant has been granted Performance Restricted Stock Units (“PSUs”) subject to the terms, restrictions, and conditions of the Plan, the Notice of Performance Restricted Stock Unit Award (the “Notice”), and this Agreement, including any applicable country-specific provisions in any appendix attached hereto (the “Appendix”), which constitutes part of this Agreement.  In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of the Notice or this Agreement, the terms and conditions of the Plan will prevail.  
1.Settlement.  Settlement of PSUs will be made within thirty (30) days following the applicable date of vesting under the Vesting Schedule set forth in the Notice.  Settlement of PSUs will be in Shares.  No fractional PSUs or rights for fractional Shares will be created pursuant to this Agreement.
2.    No Stockholder Rights.  Unless and until such time as Shares are issued in settlement of vested PSUs, Participant will have no ownership of the Shares allocated to the PSUs and will have no rights to dividends or to vote such Shares.
3.    Dividend Equivalents.  Dividends, if any (whether in cash or Shares), will not be credited to Participant.
4.    Non-Transferability of PSUs.  The PSUs and any interest therein will not be sold, assigned, transferred, pledged, hypothecated, or otherwise disposed of in any manner other than by will or by the laws of descent or distribution or court order or unless otherwise permitted by the Committee on a case-by-case basis.
5.    Termination; Leave of Absence; Change in Status.  If Participant’s Service terminates for any reason, all unvested PSUs will be forfeited to the Company immediately, and all rights of Participant to such PSUs automatically terminate without payment of any consideration to Participant.  Participant’s Service will be considered terminated as of the date Participant is no longer providing services (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any) and will not, subject to the laws applicable to Participant’s Award, be extended by any notice period mandated under local laws (e.g., Service would not include a period of “garden leave” or similar period).  Participant acknowledges and agrees that the Vesting Schedule may change prospectively in the event Participant’s service status changes between full- and part-time status and/or in the event Participant is on an approved leave of absence in accordance the Company’s policies relating to work schedules and vesting of awards or as determined by the Committee.  Participant acknowledges that the vesting of the Shares pursuant to this Notice and Agreement is subject to Participant’s continued Service.  In case of any dispute as to whether termination of Service has occurred, the Committee will have sole discretion to determine whether such termination of Service has occurred and the effective date of such termination (including whether Participant may still be considered to be providing services while on an approved leave of absence).   

    
        
24410/00003/FW/10463937.1

6.    Taxes.  
(a)    Responsibility for Taxes.  Participant acknowledges that, regardless of any action taken by the Company or, if different, a Parent, Subsidiary or Affiliate employing or retaining Participant (the “Employer”), the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to Participant’s participation in the Plan and legally applicable to Participant (“Tax-Related Items”) is and remains Participant’s responsibility and may exceed the amount actually withheld by the Company or the Employer, if any.  Participant further acknowledges that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the PSUs, including, but not limited to, the grant, vesting or settlement of the PSUs and the subsequent sale of Shares acquired pursuant to such settlement and the receipt of any dividends, and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the PSUs to reduce or eliminate Participant’s liability for Tax-Related Items or achieve any particular tax result.  Further, if Participant is subject to Tax-Related Items in more than one jurisdiction, Participant acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.  PARTICIPANT SHOULD CONSULT A TAX ADVISER APPROPRIATELY QUALIFIED IN THE COUNTRY OR COUNTRIES IN WHICH PARTICIPANT RESIDES OR IS SUBJECT TO TAXATION.
(b)    Withholding.  Prior to any relevant taxable or tax withholding event, as applicable, Participant agrees to make arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items.  In this regard, Participant authorizes the Company and/or the Employer, or their respective agents, at their discretion, to satisfy any withholding obligations for Tax-Related Items by one or a combination of the following:
		
	(i)
	withholding from Participant’s wages or other cash compensation paid to Participant by the Company and/or the Employer; or

		
	(ii)
	withholding from proceeds of the sale of Shares acquired upon settlement of the PSUs either through a voluntary sale or through a mandatory sale arranged by the Company (on Participant’s behalf pursuant to this authorization and without further consent); 

		
	(iii)
	withholding Shares to be issued upon settlement of the PSUs, provided the Company only withholds the number of Shares necessary to satisfy no more than the maximum applicable statutory withholding amounts; 

		
	(iv)
	Participant’s payment of a cash amount (including by check representing readily available funds or a wire transfer); or

		
	(v)
	any other arrangement approved by the Committee and permitted under applicable law;

all under such rules as may be established by the Committee and in compliance with the Company’s Insider Trading Policy and 10b5-1 Trading Plan Policy, if applicable; provided however, that if Participant is a Section 16 officer of the Company under the Exchange Act, then the Committee (as constituted in accordance with Rule 16b-3 under the Exchange Act) will establish the method of withholding from alternatives (i)-(v) above, and the Committee will establish the method prior to the Tax-Related Items withholding event.

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If Participant is a Section 16 officer of the Company under the Exchange Act, unless determined otherwise by the Committee in advance of a Tax-Related Items withholding event, the method of withholding for this PSU will be (iii) above.
Depending on the withholding method, the Company may withhold or account for Tax-Related Items by considering applicable statutory withholding rates or other applicable withholding rates, including up to the maximum permissible statutory rate for Participant’s tax jurisdiction(s) in which case Participant will have no entitlement to the equivalent amount in Shares and will receive a refund of any over-withheld amount in cash in accordance with applicable law.  If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, Participant is deemed to have been issued the full number of Shares subject to the vested PSUs, notwithstanding that a number of the Shares are held back solely for the purpose of satisfying the withholding obligation for Tax-Related Items. 
Finally, Participant agrees to pay to the Company and/or the Employer any amount of Tax-Related Items that the Company and/or the Employer may be required to withhold or account for as a result of Participant’s participation in the Plan that cannot be satisfied by the means previously described.  The Company may refuse to issue or deliver the Shares or the proceeds of the sale of Shares, if Participant fails to comply with Participant’s obligations in connection with the Tax-Related Items.
7.    Nature of Grant.  By accepting the PSUs, Participant acknowledges, understands and agrees that:
(a)    the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan;
(b)    the grant of the PSUs is exceptional, voluntary, and occasional, and does not create any contractual or other right to receive future grants of PSUs, or benefits in lieu of PSUs, even if PSUs have been granted in the past; 
(c)    all decisions with respect to future PSUs or other grants, if any, will be at the sole discretion of the Company; 
(d)    Participant is voluntarily participating in the Plan; 
(e)    the PSUs and Participant’s participation in the Plan will not create a right to employment or be interpreted as forming or amending an employment or service contract with the Company or the Employer and will not interfere with the ability of the Company or the Employer, as applicable, to terminate Participant’s employment or service relationship (if any);
(f)    the PSUs and the Shares subject to the PSUs, and the income and value of same, are not intended to replace any pension rights or compensation;
(g)    the PSUs and the Shares subject to the PSUs, and the income and value of same, are not part of normal or expected compensation for any purpose, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement, or welfare benefits or similar payments; 
(h)    unless otherwise agreed with the Company, the PSUs, and the Shares subject to the PSUs, and the income and value of same, are not granted as consideration for, or in connection with, the service Participant may provide as a director of a Parent, Subsidiary, or Affiliate; 

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(i)    the future value of the underlying Shares is unknown, indeterminable, and cannot be predicted with certainty;
(j)    no claim or entitlement to compensation or damages will arise from forfeiture of the PSUs resulting from Participant’s termination of Service (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any), and in consideration of the grant of the PSUs to which Participant is otherwise not entitled, Participant irrevocably agrees never to institute any claim against the Employer, the Company, and any Parent, Subsidiary or Affiliate; waives his or her ability, if any, to bring any such claim; and releases the Employer, the Company, and any Parent, Subsidiary, or Affiliate from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, Participant will be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claim; 
(k)    unless otherwise provided in the Plan or by the Company in its discretion, the PSUs and the benefits evidenced by this Agreement do not create any entitlement to have the PSUs or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any Corporate Transaction affecting the Shares; 
(l)    the following provisions apply only if Participant is providing services outside the United States:
		
	(i)
	the PSUs and the Shares subject to the PSUs are not part of normal or expected compensation or salary for any purpose;

(ii)    Participant acknowledges and agrees that neither the Company, the Employer nor any Parent or Subsidiary or Affiliate will be liable for any foreign exchange rate fluctuation between Participant’s local currency and the United States Dollar that may affect the value of the PSUs or of any amounts due to Participant pursuant to the settlement of the PSUs or the subsequent sale of any Shares acquired upon settlement. 
8.    No Advice Regarding Grant.  The Company is not providing any tax, legal, or financial advice, nor is the Company making any recommendations regarding Participant’s participation in the Plan, or Participant’s acquisition or sale of the underlying Shares.  Participant acknowledges, understands and agrees he or she should consult with his or her own personal tax, legal, and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.
9.    Data Privacy.  Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Participant’s personal data as described in this Agreement and any other PSU grant materials by and among, as applicable, the Employer, the Company and any Parent, Subsidiary or Affiliate for the exclusive purpose of implementing, administering and managing Participant’s participation in the Plan.
Participant understands that the Company and the Employer may hold certain personal information about Participant, including, but not limited to, Participant’s name, home address, email address and telephone number, date of birth, social insurance number, passport number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all PSUs or any other entitlement to shares of stock awarded, canceled, exercised, 

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vested, unvested or outstanding in Participant’s favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan.
Participant understands that Data will be transferred to the stock plan service provider as may be designated by the Company from time to time or its affiliates or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan.  Participant understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than Participant’s country.  Participant understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative.  Participant authorizes the Company, the stock plan service provider as may be designated by the Company from time to time, and its affiliates, and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing his or her participation in the Plan.  Participant understands that Data will be held only as long as is necessary to implement, administer and manage Participant’s participation in the Plan.  Participant understands that if he or she resides outside the United States, he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative.  Further, Participant understands that he or she is providing the consents herein on a purely voluntary basis.  If Participant does not consent, or if Participant later seeks to revoke his or her consent, his or her employment status or service and career with the Employer will not be adversely affected; the only adverse consequence of refusing or withdrawing Participant’s consent is that the Company would not be able to grant Participant PSUs or other equity awards or administer or maintain such awards.  Therefore, Participant understands that refusing or withdrawing his or her consent may affect Participant’s ability to participate in the Plan.  For more information on the consequences of Participant’s refusal to consent or withdrawal of consent, Participant understands that he or she may contact his or her local human resources representative.
10.    Language.  If Participant has received this Agreement or any other document related to the PSU and/or the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.
11.    Appendix.  Notwithstanding any provisions in this Agreement, the PSUs will be subject to any special terms and conditions set forth in any Appendix to this Agreement for Participant’s country.  Moreover, if Participant relocates to one of the countries included in the Appendix, the special terms and conditions for such country will apply to Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons.  The Appendix constitutes part of this Agreement.
12.    Imposition of Other Requirements.  The Company reserves the right to impose other requirements on Participant’s participation in the Plan, on the PSUs and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
13.    Acknowledgement.  The Company and Participant agree that the PSUs are granted under and governed by the Notice, this Agreement, and the Plan (incorporated herein by reference).  Participant: (a) 

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acknowledges receipt of a copy of the Plan and the Plan prospectus, (b) represents that Participant has carefully read and is familiar with their provisions, and (c) hereby accepts the PSUs subject to all of the terms and conditions set forth herein and those set forth in the Plan and the Notice.  
14.    Entire Agreement; Enforcement of Rights.  This Agreement, the Plan, and the Notice constitute the entire agreement and understanding of the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments, or negotiations concerning the purchase of the Shares hereunder are superseded. No adverse modification of or adverse amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing and signed by the parties to this Agreement (which writing and signing may be electronic). The failure by either party to enforce any rights under this Agreement will not be construed as a waiver of any rights of such party.
15.    Compliance with Laws and Regulations.  The issuance of Shares and the sale of Shares will be subject to and conditioned upon compliance by the Company and Participant with all applicable state, federal, local and foreign laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Company’s Shares may be listed or quoted at the time of such issuance or transfer.  Participant understands that the Company is under no obligation to register or qualify the Common Stock with any state, federal, or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Shares.  Further, Participant agrees that the Company will have unilateral authority to amend the Plan and this PSU Agreement without Participant’s consent to the extent necessary to comply with securities or other laws applicable to issuance of Shares.  Finally, the Shares issued pursuant to this PSU Agreement will be endorsed with appropriate legends, if any, determined by the Company. 
16.    Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision will be excluded from this Agreement, (b) the balance of this Agreement will be interpreted as if such provision were so excluded and (c) the balance of this Agreement will be enforceable in accordance with its terms.  
17.    Governing Law and Venue.  This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto will be governed, construed, and interpreted in accordance with the laws of the State of Delaware, without giving effect to such state’s conflict of laws rules.

Any and all disputes relating to, concerning or arising from this Agreement, or relating to, concerning, or arising from the relationship between the parties evidenced by the Plan or this Agreement, will be brought and heard exclusively in the United States District Court for the Northern District of California or the Superior Court of Santa Clara County, California.  Each of the parties hereby represents and agrees that such party is subject to the personal jurisdiction of said courts; hereby irrevocably consents to the jurisdiction of such courts in any legal or equitable proceedings related to, concerning, or arising from such dispute, and waives, to the fullest extent permitted by law, any objection which such party may now or hereafter have that the laying of the venue of any legal or equitable proceedings related to, concerning, or arising from such dispute which is brought in such courts is improper or that such proceedings have been brought in an inconvenient forum.
18.    No Rights as Employee, Director or Consultant.  Nothing in this Agreement will affect in any manner whatsoever any right or power of the Employer or the Company to terminate Participant’s Service, for any reason, with or without Cause.

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19.    Consent to Electronic Delivery of All Plan Documents and Disclosures.  By Participant’s acceptance of the Notice (whether in writing or electronically), Participant and the Company agree that the PSUs are granted under and governed by the terms and conditions of the Plan, the Notice, and this Agreement.  Participant has reviewed the Plan, the Notice, and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Notice and Agreement, and fully understands all provisions of the Plan, the Notice, and this Agreement.  Participant hereby agrees to accept as binding, conclusive, and final all decisions or interpretations of the Committee upon any questions relating to the Plan, the Notice, and this Agreement.  Participant further agrees to notify the Company upon any change in Participant’s residence address.  By acceptance of the PSUs, Participant agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company and consents to the electronic delivery of the Notice, this Agreement, the Plan, account statements, Plan prospectuses required by the U.S. Securities and Exchange Commission, U.S. financial reports of the Company, and all other documents that the Company is required to deliver to its security holders (including, without limitation, annual reports and proxy statements), or other communications or information related to the PSUs and current or future participation in the Plan.  Electronic delivery may include the delivery of a link to the Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail, or such other delivery determined at the Company’s discretion.  Participant acknowledges that Participant may receive from the Company a paper copy of any documents delivered electronically at no cost if Participant contacts the Company by telephone, through a postal service, or electronic mail to Stock Administration. Participant further acknowledges that Participant will be provided with a paper copy of any documents delivered electronically if electronic delivery fails; similarly, Participant understands that Participant must provide on request to the Company or any designated third party a paper copy of any documents delivered electronically if electronic delivery fails. Also, Participant understands that Participant’s consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if Participant has provided an electronic mail address), at any time by notifying the Company of such revised or revoked consent by telephone, postal service, or electronic mail to Stock Administration.  Finally, Participant understands that Participant is not required to consent to electronic delivery if local laws prohibit such consent.
20.    Insider Trading Restrictions/Market Abuse Laws.  Participant acknowledges that, depending on Participant’s country, Participant may be subject to insider trading restrictions and/or market abuse laws, which may affect Participant’s ability to acquire or sell the Shares or rights to Shares under the Plan during such times as Participant is considered to have “inside information” regarding the Company (as defined by the laws in Participant’s country).  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. Participant acknowledges that it is Participant’s responsibility to comply with any applicable restrictions and understands that Participant should consult his or her personal legal advisor on such matters.   In addition, Participant acknowledges that he or she read the Company’s Insider Trading Policy, and agrees to comply with such policy, as it may be amended from time to time, whenever Participant acquires or disposes of the Company’s securities.  
21.    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 Internal Revenue Code and the regulations thereunder (“Section 409A”).  Notwithstanding anything else provided herein, to the extent any payments provided under this PSU Agreement in connection with Participant’s termination of employment constitute deferred compensation subject to Section 409A, and Participant is deemed at the time of such termination of employment to be a “specified employee” under Section 409A, then such payment will not be made or commence until the earlier of (a) the expiration of the six (6) month period measured from Participant’s separation from service to the Employer or the Company, 

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or (b) the date of Participant’s death following such a separation from service; provided, however, that such deferral will only be effected to the extent required to avoid adverse tax treatment to Participant including, without limitation, the additional tax for which Participant would otherwise be liable under Section 409A(a)(1)(B) in the absence of such a deferral.  To the extent any payment under this PSU Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment will 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 are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. 
22.    Award Subject to Company Clawback or Recoupment.  To the extent permitted by applicable law, the PSUs will be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of Participant’s employment or other Service that is applicable to Participant.  In addition to any other remedies available under such policy and applicable law, the Company may require the cancellation of Participant’s PSUs (whether vested or unvested) and the recoupment of any gains realized with respect to Participant’s PSUs.
BY ACCEPTING THIS AWARD OF PSUS, PARTICIPANT AGREES TO ALL OF THE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN.

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APPENDIX
NATUS MEDICAL INCORPORATED
2018 EQUITY INCENTIVE PLAN
PERFORMANCE RESTRICTED STOCK UNIT AWARD AGREEMENT

COUNTRY SPECIFIC PROVISIONS FOR EMPLOYEES OUTSIDE THE U.S.

Terms and Conditions

This Appendix includes additional terms and conditions that govern the PSUs granted to Participant under the Plan if Participant resides and/or works in one of the countries below.  This Appendix forms part of the Agreement.  Any capitalized term used in this Appendix without definition will have the meaning ascribed to it in the Notice, the Agreement, or the Plan, as applicable. 

If Participant is a citizen or resident of a country, or is considered resident of a country, other than the one in which Participant is currently working, or Participant transfers employment and/or residency between countries after the Date of Grant, the Company will, in its sole discretion, determine to what extent the additional terms and conditions included herein will apply to Participant under these circumstances.

Notifications

This Appendix also includes information relating to exchange control, securities laws, foreign asset/account reporting, and other issues of which Participant should be aware with respect to Participant’s participation in the Plan.  The information is based on the securities, exchange control, foreign asset/account reporting, and other laws in effect in the respective countries as of [________] 2018.  Such laws are complex and change frequently.  As a result, Participant should not rely on the information herein as the only source of information relating to the consequences of Participant’s participation in the Plan because the information may be out of date at the time that Participant vests in the PSUs, sells Shares acquired under the Plan, or takes any other action in connection with the Plan.

In addition, the information is general in nature and may not apply to Participant’s particular situation, and the Company is not in a position to assure Participant of any particular result.  Accordingly, Participant should seek appropriate professional advice as to how the relevant laws in Participant’s country may apply to Participant’s situation.

Finally, if Participant is a citizen or resident of a country, or is considered resident of a country, other than the one in which Participant is currently working and/or residing, or Participant transfers employment and/or residency after the Date of Grant, the information contained herein may not apply to Participant in the same manner.

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APPENDIX
NATUS MEDICAL INCORPORATED
2018 EQUITY INCENTIVE PLAN
PERFORMANCE RESTRICTED STOCK UNIT AWARD AGREEMENT

COUNTRY SPECIFIC PROVISIONS FOR EMPLOYEES OUTSIDE THE U.S.

[To be provided by International Counsel]

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26554/00019/FW/9994479.3

EXHIBIT A
NATUS MEDICAL INCORPORATED
2018 EQUITY INCENTIVE PLAN
PERFORMANCE RESTRICTED STOCK UNIT AWARD AGREEMENT

Performance and Vesting Metrics and Terms and Conditions

[Metrics to be added to each agreement]

10
        
26554/00019/FW/9994479.3EXHIBIT
4.1

 

THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“ACT”), OR UNDER ANY STATE SECURITIES
LAW AND THIS NOTE MAY NOT BE PLEDGED, SOLD, ASSIGNED OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH
RESPECT THERETO UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAW, OR UNLESS THE DEBTOR RECEIVES AN OPINION OF COUNSEL, SATISFACTORY
TO THE DEBTOR, THAT SUCH REGISTRATION IS NOT REQUIRED.

 

THIS
NOTE IS SUBJECT TO THE PROVISIONS OF A CERTAIN SUBORDINATION AGREEMENT DATED DECEMBER [  ], 2018 IN FAVOR OF GERBER FINANCE, INC.

 

ATRM
HOLDINGS, INC.

 

PROMISSORY
NOTE

 

	$275,000.00	December
    14, 2018

 

FOR
VALUE RECEIVED, ATRM HOLDINGS, INC., a Minnesota corporation (the “Debtor”), promises to pay to the order of
DiGIRAD CORPORATION, a Delaware corporation (the “Holder”),
or its registered assigns, the principal amount of TWO HUNDRED-SEVENTY FIVE THOUSAND DOLLARS ($275,000.00), in such coin or currency
of the United States of America as at the time of payment shall be legal tender for the payment of public or private debts, together
with interest as set forth herein.

 

1.
Payment of Interest and Principal. All unpaid principal, together with any then accrued and unpaid interest and any other
amounts payable hereunder, shall be due and payable on December 14, 2020 (the “Maturity Date”). If any payment
hereunder becomes due and payable on a Saturday, Sunday or legal holiday under the laws of the United States of America or the
State of Minnesota, or both, the due date thereof shall be extended to the next business day and interest shall be payable for
any principal so extended for the period of such extension. Payments of principal and interest are to be made at the address provided
herein for the Holder (or at such other place as the Holder shall have notified the Debtor in writing at least two (2) days before
such payment is due) or by wire transfer pursuant to the Holder’s written instructions.

 

2.
Interest. (a) Interest shall accrue on the unpaid principal balance of this Note at the rate of (i) ten percent (10.0%)
per annum during the first 12 month period following the date hereof and (ii) twelve percent (12.0%) per annum during the second
12 month period following the date hereof; and the full amount of the unpaid principal, together with any then accrued and unpaid
interest, shall be due and payable on the Maturity Date; provided, however, if an Event of Default (as defined in
Section 4 below) or an event with the passage of time or the giving of notice could become an Event of Default, has occurred,
then, pursuant to Section 4 hereof, interest shall accrue on the unpaid principal balance of this Note at the Default Rate (as
defined in Section 4 below). Interest shall be calculated from and include the date hereof and shall be calculated on a 365-day
year.

 

    	 

    	 	 	 

    

 

(b)
Notwithstanding anything to the contrary contained herein, in no event shall this or any other provision herein permit the collection
of any interest which would be usurious under applicable law. If under any circumstances, whether by reason of advancement or
acceleration of the maturity of the unpaid principal balance hereof or otherwise, the aggregate amounts paid under this Note shall
include amounts which by law are deemed interest and which would exceed the maximum rate permitted by law, the Debtor stipulates
that payment and collection of such excess amounts shall have been and will be deemed to have been the result of a mistake on
the part of both the Holder and the Debtor, and the Holder shall promptly credit such excess (only to the extent such payments
are in excess of the maximum rate) against the unpaid principal balance hereof and any portion of such excess payments not capable
of being so credited shall be refunded to the Debtor.

 

3.
Prepayment. The Debtor shall be entitled to prepay the principal amount of this Note (in whole or in part) together with
all interest under this Note accrued and unpaid at the date of prepayment at any time without penalty or premium upon five (5)
days prior written notice to the Holder. The Debtor shall be obligated to effect such prepayment within three (3) days after the
end of such notice period.

 

4.
Events of Default. (a) Acceleration. Upon the occurrence of any of the following events (herein called “Events
of Default”):

 

(i)
The Debtor shall fail to make full and timely payment of principal of or interest on this Note when due and such failure continues
for a period of five (5) consecutive days;

 

(ii)
(A) The Debtor or any of its material subsidiaries shall commence any proceeding or other action relating to it in bankruptcy
or seek reorganization, arrangement, readjustment of its debts, receivership, dissolution, liquidation, winding-up, composition
or any other relief under any bankruptcy law, or under any other insolvency, reorganization, liquidation, dissolution, arrangement,
composition, readjustment of debt or any other similar act or law, of any jurisdiction, domestic or foreign, now or hereafter
existing; (B) the Debtor or any of its material subsidiaries shall admit the material allegations of any petition or pleading
in connection with any such proceeding; (C) the Debtor or any of its material subsidiaries shall apply for, or consent or acquiesce
to, the appointment of a receiver, conservator, trustee or similar officer for it or for all or a substantial part of its property;
or (D) the Debtor or any of its material subsidiaries shall make a general assignment for the benefit of creditors;

 

(iii)
(A) The commencement of any proceedings or the taking of any other action against the Debtor or any of its material subsidiaries
in bankruptcy or seeking reorganization, arrangement, readjustment of its debts, liquidation, dissolution, arrangement, composition,
or any other relief under any bankruptcy law or any other similar act or law of any jurisdiction, domestic or foreign, now or
hereafter existing; (B) the appointment of a receiver, conservator, trustee or similar officer for the Debtor or any of its material
subsidiaries for any of its property; or (C) the issuance of a warrant of attachment, execution or similar process against any
of the property of the Debtor or any of its material subsidiaries, and the continuance of any such events for sixty (60) days
undismissed, unbonded or undischarged;

 

    	 	2	 

    	 	 	 

    

 

(iv)
The Debtor shall (i) fail to comply with any of its covenants or obligations under this Note (other than such failure described
subsection (i) above), which failure shall continue uncured for thirty (30) calendar days after notice thereof to the Debtor;
or (ii) fail to comply with the covenants or obligations of any debt, note, or liability senior to this Note and such failure
constitutes a default of such senior debt, note, or liability; or 

 

(v)
The Debtor shall, directly or indirectly, in one or more related transactions, (A) consolidate or merge with or into (whether
or not Debtor is the surviving corporation) another person, (B) sell, assign, transfer, convey or otherwise dispose of all or
substantially all of the properties or assets of Debtor to another person, (C) allow another person to make a purchase, tender
or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of the Debtor’s common stock,
par value $0.001 per share (the “Common Stock”) (not including any shares of Common Stock held by the person
or persons making or party to, or associated or affiliated with the persons making or party to, such purchase, tender or exchange
offer), or (D) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization or spin-off) with another person whereby such other person acquires more than 50% of the outstanding shares of
Common Stock (not including any shares of Common Stock held by the other person or other persons making or party to, or associated
or affiliated with the other persons making or party to, such stock purchase agreement or other business combination);

 

then,
and in any such event, the Holder, at the Holder’s option and without written notice to the Debtor, may declare the entire
principal amount of this Note then outstanding together with accrued unpaid interest thereon immediately due and payable, and
the same shall forthwith become immediately due and payable without presentment, demand, protest, or other notice of any kind,
all of which are expressly waived. The Events of Default listed herein are solely for the purpose of protecting the interests
of the Holder of this Note. If this Note is not paid in full upon acceleration, as required above, interest shall accrue on the
outstanding principal of and interest on this Note from the date of the Event of Default up to and including the date of payment
at a rate equal to the lesser of fourteen percent (14.0%) per annum or the maximum interest rate permitted by applicable law (the
“Default Rate”).

 

(b)
Non-Waiver and Other Remedies. No course of dealing or delay on the part of the Holder of this Note in exercising any right
hereunder shall operate as a waiver or otherwise prejudice the right of the Holder of this Note. No remedy conferred in this Note
is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to
every other remedy conferred herein or now or hereafter existing at law or equity or by statute or otherwise.

 

    	 	3	 

    	 	 	 

    

 

(c)
Collection Costs; Attorney’s Fees. In the case of an Event of Default, if this Note is turned over to an attorney
for collection, the Debtor agrees to pay all reasonable costs of collection, including reasonable attorney’s fees and expenses
and all out-of-pocket expenses incurred by the Holder in connection with such collection efforts.

 

5.
Additional Covenants. Until all principal and interest due hereunder has been repaid in full in cash, unless the Holder
shall otherwise consent, in its sole discretion, in advance in writing, the Debtor hereby covenants and agrees to:

 

(a)
furnish and provide to the Holder thirty (30) days prior written notice of any of the following actions between the Debtor or
Debtor’s affiliates and any third-party lender: (i) renewal of any indebtedness; (ii) extension of the time of payment of
any indebtedness or any portion of such indebtedness; or (iii) loans or debt with or without a guarantee to the Debtor;

 

(b)
provide to the Holder, promptly after the Debtor obtains actual knowledge thereof, notice of all legal proceedings or orders against
either the Debtor or any of its affiliates that, if determined adversely to the Debtor or any of its affiliates, would reasonably
be expected to have a material adverse effect on the business, assets or properties of the Debtor, taken as a whole;

 

(c)
provide to the Holder promptly (and in any event within three (3) business days) after the occurrence of each event which is an
Event of Default (i) as defined herein or (ii) as defined by any agreement by Debtor, or Debtor’s affiliates to repay any
indebtedness of any kind that is senior in right of payment to the obligations of the Holder, a written notice of such event of
default, setting forth the details of such event and the action (if any) that the Debtor proposes to take with respect thereto;

 

(d)
not amend, or modify in any manner adverse to the Holder any provision of the Debtor’s articles of incorporation or bylaws;

 

(e)
not repay any indebtedness of any kind of the Debtor and Debtor’s affiliates that is subordinate in right of payment to
the obligations of the Holder or Holder’s affiliates;

 

(f)
not initiate or enforce any action against a third party, debt holder, or lender or defend against any action by a third party,
debt holder, or lender; other than in the normal course of business (including but not limited to collection and liens of client
accounts); and

 

    	 	4	 

    	 	 	 

    

 

(g)
use all power and control to assure Debtor’s affiliates do not initiate or enforce any action against a third party, debt
holder, or lender or defend against any action by a third party, debt holder, or lender; other than in the normal course of business
(including but not limited to collection and liens of client accounts).

 

6.
Cancellation. Upon full satisfaction of the Debtor’s obligations hereunder, the Holder shall promptly deliver or
cause to be delivered to the Debtor this Note for cancellation.

 

7.
Amendment; Waiver. This Note may not be amended or modified or the provisions hereof waived (either generally or in a particular
instance and either retroactively or prospectively) without the prior written consent of the party against whom such amendment,
modification, or waiver is sought to be enforced. All of the terms and provisions of this Note shall be applicable to and binding
upon each and every maker, Holder, endorser, surety, guarantor and all other persons who are or may become liable for the payment
hereof and their respective successors and assigns.

 

8.
Lost Documents. Upon receipt by the Debtor of evidence satisfactory to it of the loss, theft, destruction or mutilation
of this Note or any note exchanged for it, and (in the case of loss, theft or destruction) of indemnity reasonably satisfactory
to it, and upon surrender and cancellation of such note, if mutilated, the Debtor will make and deliver in lieu of such note a
new note of like tenor and unpaid principal amount and dated as of the original date of the original note.

 

9.
Miscellaneous.

 

(a)
Severability. In case any one or more of the provisions contained in this Note should be invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be
affected or impaired thereby.

 

(b)
Notices and Addresses. All notices, offers, acceptances and any other acts under this Note (except payment) shall be in
writing, and shall be sufficiently given if delivered to the addressee in person, by FedEx or similar receipted delivery, by facsimile
delivery with confirmed receipt or, if mailed, postage prepaid, by certified mail, return receipt requested, as follows:

 

	 	To
    Holder:	Digirad
    Corporation 
	 	 	1048
    Industrial Court
	 	 	Suwanee, GA 30024
	 	 	Attn: Matthew G. Molchan, Chief Executive Officer
	 	 	Fax:
    (858) 726-1700
	 	 	 
	 	 	With
    a copy to (which shall not constitute notice):
	 	 	 
	 	 	Olshan
    Frome Wolosky LLP
	 	 	1325
    Avenue of the Americas
	 	 	New
    York, New York 10019
	 	 	Attn:
    Adam Finerman, Esq.
	 	 	Fax:
    (212) 451-2222
	 	 	 
	 	To
    the Debtor:	ATRM
    Holdings, Inc.
	 	 	5215
    Gershwin Avenue N.
	 	 	Oakdale,
    Minnesota 55128
	 	 	Attn:
    Daniel M. Koch, President and 
	 	 	Chief
    Executive Officer
	 	 	Fax:
    (651) 770-7975

 

or
to such other address as any of them, by notice to the others may designate from time to time.

 

    	 	5	 

    	 	 	 

    

 

(c)
Governing Law. This Note and any dispute, disagreement, or issue of construction or interpretation arising hereunder, whether
relating to its execution, its validity, the obligations provided therein or performance, shall be governed and interpreted according
to the law of the State of Delaware, without regard to principals of conflicts of law.

 

(d)
Binding Effect; Assignment. This Note and the various rights and obligations arising hereunder shall inure to the benefit
of and be binding upon the parties hereto and their respective successors and permitted assigns. The Debtor may not delegate,
transfer or assign any rights or obligations hereunder without the Holder’s prior written consent. The Holder may not assign
or delegate all or any portion of the rights of the Holder hereunder without the consent of the Debtor (such consent not to be
unreasonably withheld, conditioned or delayed), except that no such consent shall be required for an assignment or delegation
to an affiliate of the Holder or while an Event of Default has occurred and is continuing. Any transfer or assignment of any of
the rights, interests or obligations hereunder in violation of the terms hereof shall be void and of no force or effect.

 

(e)
Jurisdiction and Venue. Each of the Holder and the Debtor (i) agree that any legal suit, action or proceeding arising out
of or relating to this Note shall be instituted exclusively in the courts of New York County in the State of New York, (ii) waive
any objection to the venue of any such suit, action or proceeding and the right to assert that such forum is not a convenient
forum, and (iii) irrevocably consent to the jurisdiction of the courts of New York County in the State of New York in any such
suit, action or proceeding, and further agree to accept and acknowledge service of any and all process which may be served in
any such suit, action or proceeding and agree that service of process upon them mailed by certified mail to their respective addresses
shall be deemed in every respect effective service of process upon them in any such suit, action or proceeding.

 

(f)
Section Headings. Section headings herein have been inserted for reference only and shall not be deemed to limit or otherwise
affect, in any manner, or be deemed to interpret in whole or in part any of the terms or provisions of this Note.

 

    	 	6	 

    	 	 	 

    

 

(g)
Waiver of Presentment. Debtor and each surety, endorser and guarantor hereof hereby waive all demands for payment, presentations
for payment, notices of intention to accelerate maturity, notices of acceleration of maturity, demand for payment, protest, notice
of protest and notice of dishonor, to the extent permitted by law, except for those notices expressly provided for herein. No
extension of time for payment of this Note or any installment hereof, no alteration, amendment or waiver of any provision of this
Note shall release, modify, amend, waive, extend, change, discharge, terminate or affect the liability of Debtor under this Note.

 

(h)
Forbearance. Any forbearance by the holder of this Note in exercising any right or remedy hereunder or under any other
agreement or instrument in connection with this Note or otherwise afforded by applicable law shall not be a waiver or preclude
the exercise of any right or remedy by the holder of this Note. The acceptance by the holder of this Note of payment of any sum
payable hereunder after the due date of such payment shall not be a waiver of the right of the holder of this Note to require
prompt payment when due of all other sums payable hereunder or to declare a default for failure to make prompt payment.

 

(i)
Acceleration. At the election of the holder of this Note, all payments due hereunder may be accelerated, and this Note
shall become immediately due and payable without notice or demand, upon the occurrence of an Event of Default under this Note,
which default is not cured within any grace period expressly provided therefor. In addition to the rights and remedies provided
herein, the holder of this Note may exercise any other right or remedy in any other document, instrument or agreement evidencing
or otherwise relating to the indebtedness evidenced hereby in accordance with the terms thereof, or under applicable law, all
of which rights and remedies shall be cumulative.

 

(j)
Construction. This Note shall be construed without any regard to any presumption or rule requiring construction against
the party causing such instrument or any portion thereof to be drafted.

 

[Signature
Page Follows]

 

    	 	7	 

    	 	 	 

    

 

[SIGNATURE
PAGE OF DIGIRAD CORPORATION PROMISSORY NOTE]

 

IN
WITNESS WHEREOF, the Debtor has caused this Note to be made and issued in its name on the date specified above.

 

	 	ATRM
    HOLDINGS, INC.
	 	 	 
	 	By:
    	/s/
    Daniel M. Koch
	 	Name:	Daniel
    M. Koch
	 	Title:	President
    and Chief Executive Officer

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