At its January 3, 2013 meeting, the Compensation Committee of the Board of Directors of Natus Medical Incorporated (the "Company") approved the base salaries and bonus program for the Company's executive officers for the period beginning January 1, 2013 and ending December 31, 2013.

The Compensation Committee approved the base salary amounts set forth in the table below:

        Executive                                                 Salary
        James B. Hawkins
        Chief Executive Officer                                  $500,000
        John T. Buhler
        President and Chief Operating Officer                    $350,000
        Steven J. Murphy
        Vice President Finance and Chief Financial Officer       $268,000
        Austin F. Noll, III
        Vice President and General Manager, Neurology            $265,000
        Kenneth M. Traverso
        Vice President and General Manager, Newborn Care         $295,000
        D. Christopher Chung, M.D.
        Vice President Medical Affairs, Quality and Regulatory   $257,000

The Compensation Committee also approved a cash bonus plan for executive officers of the Company for 2013. Cash bonuses, if paid, may range from 50% to a maximum of 200% of the target amount.

The target bonus as a percentage of 2013 base salary is 100% for Mr. Hawkins, 75% for Mr. Buhler, 45% for each of Messrs. Murphy, Noll, and Traverso, and 35% for Dr. Chung.

For Mssrs. Hawkins, Buhler, Murphy, and Chung, the target bonus is based on the achievement of three metrics: (i) the consolidated pre-tax earnings contained in the Company's 2013 business plan ("2013 Plan") weighted at 60%, (ii) the consolidated revenue contained in the 2013 Plan weighted at 20%, and
(iii) successful completion of discrete operational goals in 2013 weighted at 20%.

For Mssrs. Noll and Traverso, the target bonus is based on the achievement of four metrics: (i) the consolidated pre-tax earnings contained in the 2013 Plan weighted at 20%, (ii) the pre-tax earnings of their respective strategic business units ("SBUs") contained in the 2013 Plan weighted at 40%, (iii) the revenue of their SBUs contained in the 2013 Plan weighted at 20%, and
(iv) successful completion of discrete operational goals in 2013 weighted at 20%.

The payment of any bonus remains subject to the discretion of the Compensation Committee and in determining the attainment of operational financial metrics the Committee expects to refer to the Company's reported operating results as adjusted to eliminate the effects of any subsequent event not taken into account in establishing the 2013 Plan.