Form of Tax Matters Agreement



 Exhibit 10.3 
 FORM OF 
 TAX MATTERS AGREEMENT 

This TAX MATTERS AGREEMENT (this “Agreement”) is entered into as of [    ], by and among Pfizer
Inc., a Delaware corporation (“Pfizer”), and Zoetis Inc. a Delaware corporation and a wholly owned subsidiary of Pfizer (“Zoetis”) (Pfizer and Zoetis are sometimes collectively referred to herein as the
“Companies” and, as the context requires, individually referred to herein as the “Company”). 

RECITALS 

WHEREAS, the Board of Directors of Pfizer has determined that it would be appropriate and desirable to separate completely the Animal
Health Business (as defined below) from Pfizer; 
 WHEREAS, as of the date hereof, Pfizer is the common parent of an affiliated
group of corporations, including Zoetis, which has elected to file consolidated Federal income tax returns; 
 WHEREAS, pursuant
to the Contribution Agreement (as defined below), Pfizer and Zoetis have undertaken the transfer of certain of the Animal Health Assets, including the stock or other equity interests of certain of Pfizer’s Subsidiaries owning Animal Health
Assets and/or dedicated to the Animal Health Business, by Pfizer to Zoetis and the assumption of certain Animal Health Liabilities by Zoetis; 
 WHEREAS, the Companies have undertaken the Debt-for-Debt Exchange and agreed to undertake the Debt-for-Equity Exchange, each as described in the Separation Agreement (as defined below) and may undertake
the Distribution; 
 WHEREAS, the parties desire to provide for and agree upon the allocation between the parties of liabilities
for certain Taxes arising prior to, at the time of, and subsequent to the IPO, and to provide for and agree upon other matters relating to Taxes; 
 NOW THEREFORE, in consideration of the mutual agreements contained herein, the parties hereby agree as follows: 
 Section 1. Definition of Terms. For purposes of this Agreement (including the recitals hereof), the following terms have the following meanings, and capitalized terms used but not otherwise
defined herein shall have the meaning ascribed to them in the Separation Agreement: 
 “Active Trade or
Business” means, with respect to Zoetis, the active conduct (as defined in Section 355(b)(2) of the Code and the regulations thereunder) of the Animal Health Business as conducted immediately prior to the IPO, or, with respect to
another Separation Transaction intended to qualify as tax-free pursuant to Section 355 of the Code or analogous provisions of state or local law, the active conduct (as defined in Section 355(b)(2) of the Code and the regulations
thereunder, or the analogous provisions of state or local law) by the relevant Zoetis Entity of the Animal Health Business relating to such Zoetis Entity as conducted immediately prior to such Separation Transaction. 







 “Adjustment Request” means any formal or informal claim or request filed
with any Tax Authority, or with any administrative agency or court, for the adjustment, refund, or credit of Taxes, including (i) any amended Tax Return claiming adjustment to the Taxes as reported on the Tax Return or, if applicable, as
previously adjusted, (ii) any claim for equitable recoupment or other offset, and (iii) any claim for refund or credit of Taxes previously paid. 
 “Affiliate” has the meaning set forth in the Separation Agreement. 
 “Agreement” means this Tax Matters Agreement. 
 “Animal
Health Assets” has the meaning set forth in the Separation Agreement. 
 “Animal Health Business” has
the meaning set forth in the Separation Agreement. 
 “Animal Health Liabilities” has the meaning set forth in
the Separation Agreement. 
 “Board Certificate” has the meaning set forth in Section 6.01(d) of
this Agreement. 
 “Business Day” has the meaning set forth in the Separation Agreement. 

“Code” means the U.S. Internal Revenue Code of 1986, as amended. 

“Companies” and “Company” have the meaning provided in the first sentence of this Agreement.

 “Contribution” has the meaning set forth in the Separation Agreement. 

“Contribution Agreement” has the meaning set forth in the Separation Agreement. 

“Controlling Party” has the meaning set forth in Section 9.02(c) of this Agreement. 

“Debt-for-Debt Exchange” has the meaning set forth in the Separation Agreement. 

“Debt-for-Equity Exchange” has the meaning set forth in the Separation Agreement. 

“Deconsolidation Date” means the last date on which Zoetis qualifies as a member of the affiliated group (as defined in
Section 1504 of the Code) of which Pfizer is the common parent. 
 “DGCL” means the Delaware General
Corporation Law. 
 “Dispute” has the meaning set forth in Section 13 of this Agreement.

 “Distribution” has the meaning set forth in the Separation Agreement. 

“Distribution Date” means the date or dates on which the Distribution occurs. 

  
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 “Employee Matters Agreement” means the Employee Matters Agreement, dated as
of [    ], by and among Pfizer and Zoetis. 
 “Employment Tax” means any Tax the liability
or responsibility for which is allocated pursuant to the Employee Matters Agreement. 
 “Federal Income Tax”
means any Tax imposed by Subtitle A of the Code other than an Employment Tax, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
 “Fifty Percent or Greater Interest” has the meaning ascribed to such term for purposes of Sections 355(d) and (e) of the Code. 

“Filing Date” has the meaning set forth in Section 6.04(d) of this Agreement. 

“Final Determination” means the final resolution of liability for any Specified Tax, which resolution may be for a
specific issue or adjustment or for a taxable period, (i) by IRS Form 870 or 870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of the taxpayer, or by a comparable form under the laws of a State, local, or
foreign taxing jurisdiction, except that a Form 870 or 870-AD or comparable form shall not constitute a Final Determination to the extent that it reserves (whether by its terms or by operation of law) the right of the taxpayer to file a claim for
refund or the right of the Tax Authority to assert a further deficiency in respect of such issue or adjustment or for such taxable period (as the case may be); (ii) by a decision, judgment, decree, or other order by a court of competent
jurisdiction, which has become final and unappealable; (iii) by a closing agreement or accepted offer in compromise under Sections 7121 or 7122 of the Code, or a comparable agreement under the laws of a State, local, or foreign taxing
jurisdiction; (iv) by any allowance of a refund or credit in respect of an overpayment of a Specified Tax, but only after the expiration of all periods during which such refund may be recovered (including by way of offset) by the jurisdiction
imposing such Specified Tax; (v) by a final settlement resulting from a treaty-based competent authority determination; or (vi) by any other final disposition, including by reason of the expiration of the applicable statute of limitations
or by mutual agreement of the parties. 
 “Foreign Income Tax” means any Tax imposed by any foreign country or
any possession of the United States, or by any political subdivision of any foreign country or United States possession, which is an income tax as defined in Treasury Regulation Section 1.901-2, and any interest, penalties, additions to tax, or
additional amounts in respect of the foregoing. 
 “Gain Recognition Agreement” means a gain recognition
agreement as described in Treasury Regulations Section 1.367(a)-8 or any successor provision thereto. 

“Group” means the Pfizer Group or the Zoetis Group, or both, as the context requires. 

“Income Tax” means any Federal Income Tax, State Income Tax or Foreign Income Tax. 

“Indemnitee” has the meaning set forth in Section 12.02 of this Agreement. 

“Indemnitor” has the meaning set forth in Section 12.02 of this Agreement. 

  
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 “Internal Restructuring” has the meaning set forth in
Section 6.01(e) of this Agreement. 
 “IPO” has the meaning set forth in the Separation Agreement.

 “IRS” means the United States Internal Revenue Service. 

“Joint Return” means any Tax Return that actually includes, by election or otherwise, one or more members of the Pfizer
Group together with one or more members of the Zoetis Group. 
 “Local Separation Agreements” has the meaning
set forth in the Separation Agreement. 
 “Non-Controlling Party” has the meaning set forth in
Section 9.02(c) of this Agreement. 
 “Notified Action” has the meaning set forth in
Section 6.03(a) of this Agreement. 
 “Other Disposition” has the meaning set forth in the
Separation Agreement. 
 “Past Practices” has the meaning set forth in Section 3.04(b) of this
Agreement. 
 “Payment Date” means (i) with respect to any Pfizer Federal Consolidated Income Tax Return,
(A) the due date for any required installment of estimated taxes determined under Section 6655 of the Code, (B) the due date (determined without regard to extensions) for filing the return determined under Section 6072 of the
Code, or (C) the date the return is filed, as the case may be, and (ii) with respect to any other Tax Return, the corresponding dates determined under the applicable Tax Law. 

“Payor” has the meaning set forth in Section 4.03 of this Agreement. 

“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof, without regard to whether any entity is treated as disregarded for U.S. federal income tax
purposes. 
 “Pfizer” has the meaning provided in the first sentence of this Agreement. 

“Pfizer Affiliated Group” means the affiliated group (as that term is defined in Section 1504 of the Code and the
regulations thereunder) of which Pfizer is the common parent. 
 “Pfizer Business” has the meaning provided in
the Separation Agreement. 
 “Pfizer Federal Consolidated Income Tax Return” means any United States federal
Income Tax Return for the Pfizer Affiliated Group. 
 “Pfizer Group” means Pfizer and its Affiliates, excluding
any entity that is a member of the Zoetis Group, as determined immediately after the IPO. 

  
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 “Pfizer Separate Return” means any Tax Return of or including any member of
the Pfizer Group (including any consolidated, combined or unitary return) that does not include any member of the Zoetis Group. 

“Post-2012 Period” means any Tax Period beginning after December 31, 2012 and, in the case of any Straddle Period,
the portion of such Straddle Period beginning January 1, 2013. 
 “Post-Deconsolidation Period” means any
Tax Period beginning after the Deconsolidation Date and, in the case of any Tax Period beginning before the Deconsolidation Date and ending after the Deconsolidation Date, the portion of such Tax Period beginning on the day after the Deconsolidation
Date. 
 “Pre-2013 Period” means any Tax Period ending on or before December 31, 2012, and, in the case of
any Straddle Period, the portion of such Straddle Period ending on December 31, 2012. 
 “Pre-Deconsolidation
Period” means any Tax Period ending on or before the Deconsolidation Date and, in the case of any Straddle Period, the portion of such Straddle Period ending on the Deconsolidation Date. 

“Preliminary Tax Advisor” has the meaning set forth in Section 13.03 of this Agreement. 

“Prime Rate” means the base rate on corporate loans charged by Citibank, N.A. from time to time, compounded daily on the
basis of a year of 365 or 366 (as applicable) days and actual days elapsed. 
 “Privilege” means any privilege
that may be asserted under applicable law, including, any privilege arising under or relating to the attorney-client relationship (including the attorney-client and work product privileges), the accountant-client privilege and any privilege relating
to internal evaluation processes. 
 “Proposed Acquisition Transaction” means a transaction or series of
transactions (or any agreement, understanding or arrangement, within the meaning of Section 355(e) of the Code and Treasury Regulation Section 1.355-7, or any other regulations promulgated thereunder, to enter into a transaction or series
of transactions), whether such transaction is supported by Zoetis management or shareholders, is a hostile acquisition, or otherwise, as a result of which Zoetis would merge or consolidate with any other Person or as a result of which any Person or
any group of related Persons would (directly or indirectly) acquire, or have the right to acquire, from Zoetis and/or one or more holders of outstanding shares of Zoetis Capital Stock, a number of shares of Zoetis Capital Stock that would, when
combined with any other changes in ownership of Zoetis Capital Stock pertinent for purposes of Section 355(e) of the Code, comprise 40% or more of (i) the value of all outstanding shares of stock of Zoetis as of the date of such
transaction, or in the case of a series of transactions, the date of the last transaction of such series, or (ii) the total combined voting power of all outstanding shares of voting stock of Zoetis as of the date of such transaction, or in the
case of a series of transactions, the date of the last transaction of such series. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (i) the adoption by Zoetis of a shareholder rights plan or
(ii) issuances by Zoetis that satisfy Safe 

  
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Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury
Regulation Section 1.355-7(d). For purposes of determining whether a transaction constitutes an indirect acquisition, any recapitalization resulting in a shift of voting power or any redemption of shares of stock shall be treated as an indirect
acquisition of shares of stock by the non-exchanging shareholders. This definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and shall be interpreted accordingly. Any clarification of, or
change in, the statute or regulations promulgated under Section 355(e) of the Code shall be incorporated in this definition and its interpretation. 
 “Representation Letters” means the statements of facts and representations, officer’s certificates, representation letters and any other materials (including, without limitation, a
Ruling Request and any related supplemental submissions to the IRS or other Tax Authority) delivered or deliverable by Pfizer, its Affiliates or representatives thereof in connection with the rendering by Tax Advisors, and/or the issuance by the IRS
or other Tax Authority, of the Tax Opinions/Rulings. 
 “Required Action” has the meaning set forth in
Section 6.01(f) of this Agreement. 
 “Required Party” has the meaning set forth in
Section 4.03 of this Agreement. 
 “Responsible Company” means, with respect to any Tax Return, the
Company having responsibility for preparing and filing such Tax Return under this Agreement. 
 “Retention
Date” has the meaning set forth in Section 8.01 of this Agreement. 
 “Ruling” means a
private letter ruling issued by the IRS to Pfizer in connection with the Contribution and Distribution. 
 “Ruling
Request” means any letter filed by Pfizer with the IRS or other Tax Authority requesting a ruling regarding certain tax consequences of the Separation Transactions (including all attachments, exhibits, and other materials submitted with
such ruling request letter) and any amendment or supplement to such ruling request letter. 
 “Section 6.01(d)
Acquisition Transaction” means any transaction or series of transactions that is not a Proposed Acquisition Transaction but would be a Proposed Acquisition Transaction if the percentage reflected in the definition of Proposed Acquisition
Transaction were 25% instead of 40%. 
 “Separate Return” means a Pfizer Separate Return or a Zoetis Separate
Return, as the case may be. 
 “Separation” has the meaning set forth in the Separation Agreement. 

“Separation Agreement” means the Global Separation Agreement, as amended from time to time, by and among Pfizer and
Zoetis dated [    ]. 
 “Separation Plan” means, collectively, (i) the Animal Health
Global Macro Step Plan dated [    ], attached hereto as Exhibit A-1, and (ii) the External Transactions Step Plan dated [    ], attached hereto as Exhibit A-2. 

  
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 “Separation Transactions” means those transactions undertaken by the
Companies and their Affiliates pursuant to the Separation Plan to separate ownership of the Animal Health Business from ownership of the Pfizer Business. 
 “Separation Taxes” means those Taxes shown on Exhibit B hereto, identified by the jurisdiction imposing such Tax, the step in the Separation Plan with respect to which such Tax is
triggered, and a description of the nature of such Tax. Dollar amounts shown on Exhibit B reflect the current estimate of the amount of such Separation Taxes, where available; the indemnification obligations of Pfizer pursuant to
Section 2.08 hereof with respect to such Separation Taxes shall be determined based upon the final amount of such Separation Taxes as determined under applicable Tax Law rather than upon the estimated amounts set forth on Exhibit B. For
the avoidance of doubt, Separation Taxes shall include only those Taxes shown on Exhibit B, and shall not include any other Taxes. 
 “Specified Taxes” means those Taxes described in Section 2.01 through Section 2.04 of this Agreement, as well as those Taxes described in Section 2.07
or Section 2.08 of this Agreement. 
 “State Income Tax” means any Tax imposed by any State of the
United States or by any political subdivision of any such State which is imposed on or measured by net income, including state or local franchise or similar Taxes measured by net income, as well as any state or local franchise, capital or similar
Taxes imposed in lieu of a tax imposed on or measured by net income, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
 “State Other Tax” means any Tax imposed by any State of the United States or by any political subdivision of any such State other than any State Income Taxes or Employment Taxes, and any
interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
 “Straddle Period”
means any Tax Period that begins before and ends after December 31, 2012. 
 “Tax” or
“Taxes” means any income, gross income, gross receipts, profits, capital stock, franchise, withholding, payroll, social security, workers compensation, unemployment, disability, property, ad valorem, value added, stamp, excise,
severance, occupation, service, sales, use, license, lease, transfer, import, export, alternative minimum, estimated or other tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax), imposed by any governmental
entity or political subdivision thereof, and any interest, penalty, additions to tax, or additional amounts in respect of the foregoing. 
 “Tax Advisor” means a tax counsel or accountant of recognized national standing. 
 “Tax Attribute” or “Attribute” means a net operating loss, net capital loss, unused investment credit, unused foreign tax credit, excess charitable contribution, general
business credit, research and development credit or any other Tax Item that could reduce a Tax or create a Tax Benefit. 

  
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 “Tax Authority” means, with respect to any Tax, the governmental entity or
political subdivision thereof that imposes such Tax, and the agency (if any) charged with the collection of such Tax for such entity or subdivision. 
 “Tax Benefit” means any refund, credit, or other reduction in otherwise required liability for Taxes. 
 “Tax Contest” means an audit, review, examination, or any other administrative or judicial proceeding with the purpose or effect of redetermining Taxes (including any administrative or
judicial review of any claim for refund). 
 “Tax Control” means the definition of “control” set
forth in Section 368(c) of the Code (or in any successor statute or provision), as such definition may be amended from time to time. 
 “Tax-Free Status” means the qualification of the Contribution, the Debt-for Debt Exchange, the Debt-for-Equity Exchange and the Distribution, taken together, (i) as a reorganization
described in Sections 355(a) and 368(a)(1)(D) of the Code, (ii) as a transaction in which the stock distributed thereby is “qualified property” for purposes of Sections 355(d), 355(e) and 361(c) of the Code and in which the Zoetis
Securities are “securities” within the meaning of Section 361(a) of the Code, and (iii) as a transaction in which Pfizer, Zoetis and the shareholders of Pfizer recognize no income or gain for U.S. federal income tax purposes
pursuant to Sections 355, 361 and 1032 of the Code, other than, in the case of Pfizer and Zoetis, intercompany items or excess loss accounts taken into account pursuant to the Treasury Regulations promulgated pursuant to Section 1502 of the
Code. 
 “Tax Item” means, with respect to any Income Tax, any item of income, gain, loss, deduction, or
credit. 
 “Tax Law” means the law of any governmental entity or political subdivision thereof relating to any
Tax. 
 “Tax Opinions/Rulings” means the opinions of Tax Advisors and/or the rulings by the IRS or other Tax
Authorities deliverable to Pfizer in connection with the Contribution and the Distribution or otherwise with respect to the Separation Transactions. 
 “Tax Period” means, with respect to any Tax, the period for which the Tax is reported as provided under the Code or other applicable Tax Law. 

“Tax Records” means any (i) Tax Returns, (ii) Tax Return workpapers, (iii) documentation relating to any
Tax Contests, and (iv) any other books of account or records (whether or not in written, electronic or other tangible or intangible forms and whether or not stored on electronic or any other medium) required to be maintained under the Code or
other applicable Tax Laws or under any record retention agreement with any Tax Authority, in each case filed with respect to or otherwise relating to Specified Taxes. 
 “Tax-Related Losses” means (i) all Taxes (including interest and penalties thereon) imposed pursuant to any settlement, Final Determination, judgment or otherwise; (ii) all
accounting, legal and other professional fees, and court costs incurred in connection with such 

  
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Taxes, as well as any other out-of-pocket costs incurred in connection with such Taxes; and (iii) all costs, expenses and damages associated with stockholder litigation or controversies and
any amount paid by Pfizer (or any Pfizer Affiliate) or Zoetis (or any Zoetis Affiliate) in respect of the liability of shareholders, whether paid to shareholders or to the IRS or any other Tax Authority, in each case, resulting from the failure of
the Contribution, the Debt-for-Debt Exchange, the Debt-for-Equity Exchange and the Distribution to have Tax-Free Status or from the failure of a Separation Transaction to have the tax treatment described in the Tax Opinions/Rulings. 

“Tax Return” or “Return” means any report of Specified Taxes due, any claim for refund of Specified
Taxes paid, any information return with respect to Specified Taxes, or any other similar report, statement, declaration, or document required to be filed under the Code or other Tax Law with respect to Specified Taxes, including any attachments,
exhibits, or other materials submitted with any of the foregoing, and including any amendments or supplements to any of the foregoing. 
 “Transfer Pricing Adjustment” means any proposed or actual allocation by a Tax Authority of any Tax Item between or among any member of the Pfizer Group and any member of the Zoetis Group
with respect to any Tax Period ending prior to or including the final Distribution Date or the date of any Other Disposition, as the case may be. 
 “Treasury Regulations” means the regulations promulgated from time to time under the Code as in effect for the relevant Tax Period. 

“Unqualified Tax Opinion” means an unqualified “will” opinion of a Tax Advisor, which Tax Advisor is
acceptable to Pfizer, on which Pfizer may rely to the effect that a transaction will not affect the Tax-Free Status. Any such opinion must assume that the Contribution, the Debt-for-Debt Exchange, the Debt-for-Equity Exchange and the Distribution
would have qualified for Tax-Free Status if the transaction in question did not occur. 
 “Zoetis” has the
meaning provided in the first sentence of this Agreement. 
 “Zoetis Capital Stock” means all classes or series
of capital stock of Zoetis, including (i) the Zoetis Common Stock, (ii) all options, warrants and other rights to acquire such capital stock and (iii) all instruments properly treated as stock in Zoetis for U.S. federal income tax
purposes. 
 “Zoetis Carryback” means any net operating loss, net capital loss, excess tax credit, or other
similar Tax item of any member of the Zoetis Group which may or must be carried from one Tax Period to another prior Tax Period under the Code or other applicable Tax Law. 
 “Zoetis Common Stock” has the meaning given to the term “Company Common Stock” in the Separation Agreement. 

“Zoetis Entity” means an entity which will be a member of the Zoetis Group immediately after the IPO. 

“Zoetis Group” means (i) Zoetis and its Affiliates, as determined immediately after the IPO, as well as
(ii) any entity which (A) was an Affiliate of Pfizer or an Affiliate of a member of the Zoetis Group, (B) conducted solely or predominantly the Animal Health Business, and (C) is no longer an Affiliate of Pfizer as of the IPO.


  
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 “Zoetis Separate Return” means any Tax Return of or including any member of
the Zoetis Group (including any consolidated, combined or unitary return) that does not include any member of the Pfizer Group. 

“Zoetis Securities” has the meaning given to the term “Debt-for-Debt Senior Indebtedness” in the Separation
Agreement. 
 Section 2. Allocation of Tax Liabilities. 

Section 2.01 General Rule. 
 (a) Pfizer Liability. Pfizer shall be liable for, and shall indemnify and hold harmless the Zoetis Group from and against any liability for, Taxes which are allocated to Pfizer under this
Section 2. 
 (b) Zoetis Liability. Zoetis shall be liable for, and shall indemnify and hold harmless the
Pfizer Group from and against any liability for, Taxes which are allocated to Zoetis under this Section 2. 

Section 2.02 Allocation of United States Federal Income Tax. Except as provided in Section 2.05,
Section 2.07 or Section 2.08, Federal Income Tax shall be allocated as follows: 
 (a) Allocation of
Federal Income Tax Relating to Joint Returns 
 (i) Allocation for Pre-2013 Periods. With respect to
any Joint Return, Pfizer shall be responsible for any and all Federal Income Taxes due with respect to or required to be reported on any such Income Tax Return (including any increase in such Tax as a result of a Final Determination) for all
Pre-2013 Periods. 
 (ii) Allocation to Zoetis for Post-2012 Periods. Zoetis shall be responsible for any
and all Federal Income Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) which Taxes are attributable to the Animal Health Business for all Post-2012
Periods, as determined pursuant to Section 2.06. 
 (iii) Allocation to Pfizer for Post-2012
Periods. Pfizer shall be responsible for any and all Federal Income Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) other than those Federal
Income Taxes described in Section 2.02(a)(ii) for all Post-2012 Periods. 
 (b) Allocation of Federal Income Tax
Relating to Separate Returns. 
 (i) Pfizer shall be responsible for any and all Federal Income Taxes due
with respect to or required to be reported on any Pfizer Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods. 

  
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 (ii) Zoetis shall be responsible for any and all Federal Income Taxes due
with respect to or required to be reported on any Zoetis Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods. 
 Section 2.03 Allocation of State Income and State Other Taxes. Except as provided in Section 2.05, Section 2.07 or Section 2.08, State Income Tax and State
Other Tax shall be allocated as follows: 
 (a) Allocation of State Income Tax Relating to Joint Returns 

(i) Allocation for Pre-2013 Periods. Pfizer shall be responsible for any and all State Income Taxes due with
respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) for all Pre-2013 Periods. 
 (ii) Allocation to Zoetis for Post-2012 Periods. Zoetis shall be responsible for any and all State Income Taxes due with respect to or required to be reported on any Joint Return (including any
increase in such Tax as a result of a Final Determination) which Taxes are attributable to the Animal Health Business for all Post-2012 Periods, as determined pursuant to Section 2.06. 

(iii) Allocation to Pfizer for Post-2012 Periods. Pfizer shall be responsible for any and all State Income Taxes
due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) other than those State Income Taxes described in Section 2.03(a)(ii) for all Post-2012 Periods.

 (b) Allocation of State Income Tax Relating to Separate Returns. 

(i) Pfizer shall be responsible for any and all State Income Taxes due with respect to or required to be reported on any
Pfizer Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods. 
 (ii) Zoetis shall be responsible for any and all State Income Taxes due with respect to or required to be reported on any Zoetis Separate Return (including any increase in such Tax as a result of a Final
Determination) for all Tax Periods. 
 (c) Allocation of State Other Tax Relating to Joint Returns. 

(i) Allocation for Pre-2013 Periods. Pfizer shall be responsible for any and all State Other Taxes due with respect
to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) for all Pre-2013 Periods. 

  
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 (ii) Allocation to Zoetis for Post-2012 Periods. Zoetis shall be
responsible for any and all State Other Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) which Taxes are attributable to the Animal Health Business for
all Post-2012 Periods. 
 (iii) Allocation to Pfizer for Post-2012 Periods. Pfizer shall be responsible
for any and all State Other Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) other than those State Other Taxes described in
Section 2.03(c)(ii) for all Post-2012 Periods. 
 (d) Allocation of State Other Tax Relating to Separate
Returns. 
 (i) Zoetis shall be responsible for any and all State Other Taxes due with respect to or required
to be reported on any Zoetis Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods. 
 (ii) Pfizer shall be responsible for any and all State Other Taxes due with respect to or required to be reported on any Pfizer Separate Return (including any increase in such Tax as a result of a Final
Determination) for all Tax Periods. 
 Section 2.04 Allocation of Foreign Income Taxes. Except as provided in
Section 2.05, Section 2.07 or Section 2.08, Foreign Income Tax shall be allocated as follows: 
 (a) Allocation of Foreign Income Tax Relating to Joint Returns 
 (i) Allocation for Pre-2013 Periods. Pfizer shall be responsible for any and all Foreign Income Taxes due with respect to or required to be reported on any Joint Return (including any increase in
such Tax as a result of a Final Determination) for all Pre-2013 Periods. 
 (ii) Allocation to Zoetis for
Post-2012 Periods. Zoetis shall be responsible for any and all Foreign Income Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) which Taxes are
attributable to the Animal Health Business for all Post-2012 Periods, as determined pursuant to Section 2.06. 
 (iii) Allocation to Pfizer for Post-2012 Periods. Pfizer shall be responsible for any and all Foreign Income Taxes due with respect to or required to be reported on any Joint Return (including any
increase in such Tax as a result of a Final Determination) other than those Foreign Income Taxes described in Section 2.04(a)(ii) for all Post-2012 Periods. 
 (b) Allocation of Foreign Income Tax Relating to Separate Returns. 

  
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 (i) Pfizer shall be responsible for any and all Foreign Income Taxes due
with respect to or required to be reported on any Pfizer Separate Return, including any Foreign Income Tax of Pfizer or any member of the Pfizer Group imposed by way of withholding by a member of the Zoetis Group (and including any increase in such
Foreign Income Tax as a result of a Final Determination) for all Tax Periods. 
 (ii) Zoetis shall be responsible
for any and all Foreign Income Taxes due with respect to or required to be reported on any Zoetis Separate Return, including any Foreign Income Tax of Zoetis or any member of the Zoetis Group imposed by way of withholding by a member of the Pfizer
Group (and including any increase in such Foreign Income Tax as a result of a Final Determination) for all Tax Periods. 

Section 2.05 Certain Employment and Other Taxes. 
 (a) Allocation of Employment Taxes. Notwithstanding anything contained herein to the contrary, this Agreement, including Section 2 hereof, shall not apply with respect to Employment
Taxes. Employment Taxes shall be allocated as provided in the Employee Matters Agreement. 
 (b) Allocation of Taxes other
than Specified Taxes. All Taxes other than Specified Taxes and Employment Taxes shall be allocated pursuant to the Separation Agreement, unless otherwise allocated pursuant to an Ancillary Agreement (other than this Agreement). 

Section 2.06 Determination of Tax Attributable to the Animal Health Business. 

(a) United States Federal Income Tax. For purposes of Section 2.02(a)(ii), the amount of Federal Income Taxes
attributable to the Animal Health Business shall be as determined by Pfizer on a pro forma Zoetis Group consolidated return prepared: 
 (i) assuming that the members of the Zoetis Group were not included in the Pfizer Affiliated Group; 
 (ii) including only Tax Items of members of the Zoetis Group that were included in the relevant Pfizer Federal Consolidated Income Tax Return; 

(iii) except as provided in Section 2.06(a)(v) hereof, using all elections, accounting methods and conventions
used on the Pfizer Federal Consolidated Income Tax Return for such period; 
 (iv) applying the highest statutory
marginal corporate income Tax rate in effect for such taxable period; 
 (v) assuming that the Zoetis Group
elects not to carry back any net operating losses; and 

  
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 (vi) assuming that the Zoetis Group’s utilization of any Tax Attribute
carryforward or carryback is limited to the Tax Attributes of the Zoetis Group that would be available if the Federal Income Tax of the Zoetis Group for each taxable year ending after December 31, 2012 were determined in accordance with this
Section 2.06(a). 
 (b) State Income Tax. For purposes of Section 2.03(a)(ii), the amount of
State Income Taxes attributable to the Animal Health Business shall be as determined by Pfizer in a manner consistent with the principles set forth in Section 2.06(a). 

(c) Foreign Income Tax. For purposes of Section 2.04(a)(ii), the amount of Foreign Income Taxes attributable to the
Animal Health Business shall be as determined by Pfizer in a manner consistent with the principles set forth in Section 2.06(a). 
 (d) Limitation. The amount of Federal Income Taxes, State Income Taxes or Foreign Income Taxes attributable to the Animal Health Business for any Tax Period shall not be less than zero. 

Section 2.07 Zoetis Liability. Zoetis shall be liable for, and shall indemnify and hold harmless the Pfizer Group from and
against, any liability for: 
 (a) any Tax resulting from a breach by Zoetis of any covenant in this Agreement, the
Separation Agreement or any Ancillary Agreement; and 
 (b) any Tax-Related Losses for which Zoetis is responsible
pursuant to Section 6.04 of this Agreement. 
 Section 2.08 Pfizer Liability. Pfizer shall be liable
for, and shall indemnify and hold harmless the Zoetis Group from and against, any liability for: 
 (a) any Separation
Tax; 
 (b) any Tax resulting from a breach by Pfizer of any covenant in this Agreement, the Separation Agreement or any
Ancillary Agreement; and 
 (c) any Tax-Related Losses for which Pfizer is responsible pursuant to
Section 6.04 of this Agreement. 
 Section 3. Preparation and Filing of Tax Returns. 

Section 3.01 Pfizer’s Responsibility. Pfizer has the exclusive obligation and right to prepare and file, or to cause to
be prepared and filed: 
 (a) All Joint Returns; and 

(b) Pfizer Separate Returns. 

  
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 Section 3.02 Zoetis’s Responsibility. Zoetis shall prepare and file, or
shall cause to be prepared and filed, all Tax Returns required to be filed by or with respect to members of the Zoetis Group other than those Tax Returns which Pfizer is required to prepare and file under Section 3.01 or
Section 3.03. The Tax Returns required to be prepared and filed by Zoetis under this Section 3.02 shall include any Zoetis Separate Returns. 
 Section 3.03 Tax Returns for Separation Taxes. Tax Returns relating to Separation Taxes shall be prepared and filed when due (including extensions) by the person obligated to file such Tax
Returns under applicable Tax Law. The Companies shall provide, and shall cause their Affiliates to provide, assistance and cooperation to one another in accordance with Section 7 with respect to the preparation and filing of Tax Returns,
including providing information required to be provided in Section 7. 
 Section 3.04 Tax Reporting
Practices. 
 (a) Pfizer General Rule. Except as provided in Section 3.04(c), Pfizer shall prepare any
Tax Return which it has the obligation and right to prepare and file, or cause to be prepared and filed, under Section 3.01, in accordance with reasonable Tax accounting practices selected by Pfizer. 

(b) Zoetis General Rule. Except as provided in Section 3.04(c), with respect to any Tax Return that Zoetis has the
obligation and right to prepare and file, or cause to be prepared and filed, under Section 3.02, such Tax Return shall be prepared in accordance with past practices, accounting methods, elections or conventions (“Past
Practices”) used with respect to the Tax Returns in question (unless there is no reasonable basis for the use of such Past Practices or unless there is no adverse effect to Pfizer), and to the extent any items are not covered by Past
Practices (or in the event that there is no reasonable basis for the use of such Past Practices or there is no adverse effect to Pfizer), in accordance with reasonable Tax accounting practices selected by Zoetis. 

(c) Reporting of Separation Transactions. The Tax treatment of the Separation Transactions reported on any Tax Return shall be
consistent with the treatment thereof in the Ruling Requests and the Tax Opinions/Rulings, taking into account the jurisdiction in which such Tax Returns are filed, unless there is no reasonable basis for such Tax treatment. Such treatment reported
on any Tax Return for which Zoetis is the Responsible Company shall be consistent with that on any Tax Return filed or to be filed by Pfizer or any member of the Pfizer Group or caused or to be caused to be filed by Pfizer, unless there is no
reasonable basis for such Tax treatment. In the event that a Company shall determine that there is no reasonable basis for the Tax treatment described in either of the preceding two sentences, such Company shall notify the other Company 20 Business
Days prior to filing the relevant Tax Return and the Companies shall attempt in good faith to agree on the manner in which the relevant portion of the Separation Transactions shall be reported. 

Section 3.05 Consolidated or Combined Tax Returns. Zoetis will elect and join, and will cause its respective Affiliates to
elect and join, in filing any Joint Returns that Pfizer determines are required to be filed or that Pfizer chooses to file pursuant to Section 3.01(b). 

  
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 Section 3.06 Right to Review Tax Returns. 

(a) General. The Responsible Company with respect to any material Tax Return shall make the portion of such Tax Return and related
workpapers which are relevant to the determination of the other Company’s rights or obligations under this Agreement available for review by the other Company, if requested, to the extent (i) such Tax Return relates to Taxes for which the
requesting party would reasonably be expected to be liable, (ii) such Tax Return relates to Taxes and the requesting party would reasonably be expected to be liable in whole or in part for any additional Taxes owing as a result of adjustments
to the amount of such Taxes reported on such Tax Return, (iii) such Tax Return relates to Taxes for which the requesting party would reasonably be expected to have a claim for Tax Benefits under this Agreement, or (iv) the requesting party
reasonably determines that it must inspect such Tax Return to confirm compliance with the terms of this Agreement. The Responsible Company shall (i) use its reasonable best efforts to make such portion of such Tax Return available for review as
required under this paragraph sufficiently in advance of the due date for filing of such Tax Return to provide the requesting party with a meaningful opportunity to analyze and comment on such Tax Return and (ii) use reasonable efforts to have
such Tax Return modified before filing, taking into account the person responsible for payment of the Tax (if any) reported on such Tax Return and whether the amount of Tax liability allocable to the requesting party with respect to such Tax Return
is material. The Companies shall attempt in good faith to resolve any issues arising out of the review of such Tax Return. 

(b) Material Tax Returns. For purposes of Section 3.06(a), a Tax Return is “material” if it could reasonably
be expected to reflect (A) Tax liability equal to or in excess of $1 million, (B) a credit or credits equal to or in excess of $1 million or (C) a loss or losses equal to or in excess of $3 million, in each case with respect to the
requesting party. 
 Section 3.07 Zoetis Carrybacks and Claims for Refund. Zoetis hereby agrees that, unless Pfizer
consents in writing, (i) no Adjustment Request with respect to any Joint Return shall be filed, and (ii) any available elections to waive the right to claim in any Pre-Deconsolidation Period with respect to any Joint Return any Zoetis
Carryback arising in a Post-Deconsolidation Period shall be made, and no affirmative election shall be made to claim any such Zoetis Carryback. 
 Section 3.08 Apportionment of Tax Attributes. Pfizer shall in good faith advise Zoetis in writing of the amount, if any, of any Tax Attributes, which Pfizer determines, in its sole and
absolute discretion, shall be allocated or apportioned to the Zoetis Group under applicable law, provided that this Section 3.08 shall not be construed as obligating Pfizer to undertake any such determination. Zoetis and all
members of the Zoetis Group shall prepare all Tax Returns in accordance with such written notice. Zoetis agrees that it shall not dispute Pfizer’s allocation or apportionment of Tax Attributes. Zoetis may request that Pfizer undertake a
determination of the portion, if any, of any particular Tax Attribute to be allocated or apportioned to the Zoetis Group under applicable law; to the extent that Pfizer determines, in its sole and absolute discretion, not to undertake such
determination, or does not otherwise advise Zoetis of its intention to undertake such determination within 20 Business Days of the receipt of such request, Zoetis shall be permitted to undertake such determination at its own cost and expense and
shall notify Pfizer of its determination, which determination shall not be binding upon Pfizer. 

  
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 Section 4. Tax Payments. 

Section 4.01 Payment of Taxes With Respect to Certain Joint Returns. In the case of any Joint Return: 

(a) Computation and Payment of Tax Due. At least three Business Days prior to any Payment Date for any such Tax Return, the
Responsible Company shall compute the amount of Tax required to be paid to the applicable Tax Authority (taking into account the requirements of Section 3.04 relating to consistent accounting practices, as applicable) with respect to
such Tax Return on such Payment Date. The Responsible Company shall pay such amount to such Tax Authority on or before such Payment Date (and provide notice and proof of payment to the other Company). 

(b) Computation and Payment of Liability With Respect To Tax Due. Within 20 Business Days following the earlier of (i) the
due date (including extensions) for filing any such Tax Return (excluding any Tax Return with respect to payment of estimated Taxes or Taxes due with a request for extension of time to file) or (ii) the date on which such Tax Return is filed,
if Pfizer is the Responsible Company, then Zoetis shall pay to Pfizer the amount allocable to the Zoetis Group under the provisions of Section 2, and if Zoetis is the Responsible Company, then Pfizer shall pay to Zoetis the amount
allocable to the Pfizer Group under the provisions of Section 2, in each case, plus interest computed at the Prime Rate on the amount of the payment based on the number of days from the earlier of (i) the due date of the Tax Return
(including extensions) or (ii) the date on which such Tax Return is filed, to the date of payment. 
 (c) Adjustments
Resulting in Underpayments. In the case of any adjustment pursuant to a Final Determination with respect to any such Tax Return, the Responsible Company shall pay to the applicable Tax Authority when due any additional Tax due with respect to
such Return required to be paid as a result of such adjustment pursuant to a Final Determination. The Responsible Company shall compute the amount attributable to the Zoetis Group in accordance with Section 2 and Zoetis shall pay to
Pfizer any amount due Pfizer (or Pfizer shall pay Zoetis any amount due Zoetis) under Section 2 within 20 Business Days from the later of (i) the date the additional Tax was paid by the Responsible Company or (ii) the date of
receipt of a written notice and demand from the Responsible Company for payment of the amount due, accompanied by evidence of payment and a statement detailing the Taxes paid and describing in reasonable detail the particulars relating thereto. Any
payments required under this Section 4.01(c) shall include interest computed at the Prime Rate based on the number of days from the date the additional Tax was paid by the Responsible Company to the date of the payment under this
Section 4.01(c). 
 Section 4.02 Payment of Separate Company Taxes. Each Company shall pay, or shall
cause to be paid, to the applicable Tax Authority when due all Taxes owed by such Company or a member of such Company’s Group with respect to a Separate Return. 
 Section 4.03 Indemnification Payments. 
 (a) If any Company
(the “Payor”) is required under applicable Tax Law to pay to a Tax Authority a Tax that another Company (the “Required Party”) is liable for under this 

  
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Agreement, the Required Party shall reimburse the Payor within 20 Business Days of delivery by the Payor to the Required Party of an invoice for the amount due, accompanied by evidence of payment
and a statement detailing the Taxes paid and describing in reasonable detail the particulars relating thereto. The reimbursement shall include interest on the Tax payment computed at the Prime Rate based on the number of days from the date of the
payment to the Tax Authority to the date of reimbursement under this Section 4.03. 
 (b) All indemnification
payments under this Agreement shall be made by Pfizer directly to Zoetis and by Zoetis directly to Pfizer; provided, however, that if the Companies mutually agree with respect to any such indemnification payment, any member of the Pfizer
Group, on the one hand, may make such indemnification payment to any member of the Zoetis Group, on the other hand, and vice versa. All indemnification payments shall be treated in the manner described in Section 12.01. 

Section 5. Tax Refunds. 
 Section 5.01 Tax Refunds. Pfizer shall be entitled to any refund (and any interest thereon received from the applicable Tax Authority) of Specified Taxes for which Pfizer is liable hereunder,
Zoetis shall be entitled to any refund (and any interest thereon received from the applicable Tax Authority) of Specified Taxes for which Zoetis is liable hereunder and a Company receiving a refund to which another Company is entitled hereunder
shall pay over such refund to such other Company within 20 Business Days after such refund is received (together with interest computed at the Prime Rate based on the number of days from the date the refund was received to the date the refund was
paid over). 
 Section 6. Tax-Free Status. 
 Section 6.01 Restrictions on Zoetis. 
 (a) Zoetis agrees that
it will not take or fail to take, or permit any Zoetis Affiliate, as the case may be, to take or fail to take, any action where such action or failure to act would be inconsistent with or cause to be untrue any statement, information, covenant or
representation in any Representation Letters or Tax Opinions/Rulings. Zoetis agrees that it will not take or fail to take, or permit any Zoetis Affiliate, as the case may be, to take or fail to take, any action which adversely affects or could
reasonably be expected to adversely affect (A) the Tax-Free Status of the Contribution, the Debt-for-Debt Exchange, the Debt-for-Equity Exchange and the Distribution, or (B) the qualification of any Separation Transaction under U.S.
federal, state, local or non-U.S. Tax Law as wholly or partially tax-free or tax-deferred (including, but not limited to, those transactions described in any of the Tax Opinions/Rulings received with respect to such Separation Transaction).

 (b) Zoetis agrees that, from the date hereof until the first Business Day after the two-year anniversary of the final
Distribution Date, it will (i) maintain its status as a company engaged in the Active Trade or Business for purposes of Section 355(b)(2) of the Code, (ii) not engage in any transaction that would result in it ceasing to be a company
engaged in the Active Trade or Business for purposes of Section 355(b)(2) of the Code, (iii) cause each Zoetis Affiliate whose Active Trade or Business is relied upon in the Tax Opinions/Rulings for purposes of


  
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qualifying a transaction as tax-free pursuant to Section 355 of the Code or other Tax Law to maintain its status as a company engaged in such Active Trade or Business for purposes of
Section 355(b)(2) of the Code and any such other applicable Tax Law, (iv) not engage in any transaction or permit a Zoetis Affiliate to engage in any transaction that would result in a Zoetis Affiliate described in clause (iii) hereof
ceasing to be a company engaged in the relevant Active Trade or Business for purposes of Section 355(b)(2) or such other applicable Tax Law, taking into account Section 355(b)(3) of the Code for purposes of clauses (i) through
(iv) hereof, and (v) not dispose of or permit a Zoetis Affiliate to dispose of, directly or indirectly, any interest in a Zoetis Affiliate described in clause (iii) hereof or permit any such Zoetis Affiliate to make or revoke any
election under Treasury Regulation Section 301.7701-3. 
 (c) Zoetis agrees that, from the date hereof until the
first Business Day after the two-year anniversary of the final Distribution Date, it will not and will not permit any Zoetis Affiliate described in clause (iii) of Section 6.01(b) to (i) enter into any Proposed Acquisition
Transaction or, to the extent Zoetis has the right to prohibit any Proposed Acquisition Transaction, permit any Proposed Acquisition Transaction to occur (whether by (a) redeeming rights under a shareholder rights plan, (b) finding a
tender offer to be a “permitted offer” under any such plan or otherwise causing any such plan to be inapplicable or neutralized with respect to any Proposed Acquisition Transaction, (c) approving any Proposed Acquisition Transaction,
whether for purposes of Section 203 of the DGCL or any similar corporate statute, any “fair price” or other provision of Zoetis’s charter or bylaws, (d) amending its certificate of incorporation to declassify its Board of
Directors or approving any such amendment, or otherwise), (ii) merge or consolidate with any other Person or liquidate or partially liquidate, (iii) in a single transaction or series of transactions sell or transfer (other than sales or
transfers of inventory in the ordinary course of business) all or substantially all of the assets that were transferred to Zoetis pursuant to the Contribution or sell or transfer 25% or more of the gross assets of any Active Trade or Business or 25%
or more of the consolidated gross assets of Zoetis and its Affiliates (such percentages to be measured based on fair market value as of the initial Distribution Date), (iv) redeem or otherwise repurchase (directly or through a Zoetis Affiliate)
any Zoetis stock, or rights to acquire stock, except to the extent such repurchases satisfy Section 4.05(1)(b) of Revenue Procedure 96-30 (as in effect prior to the amendment of such Revenue Procedure by Revenue Procedure 2003-48),
(v) amend its certificate of incorporation (or other organizational documents), or take any other action, whether through a stockholder vote or otherwise, affecting the voting rights of Zoetis Capital Stock (including, without limitation,
through the conversion of one class of Zoetis Capital Stock into another class of Zoetis Capital Stock) or (vi) take any other action or actions (including any action or transaction that would be reasonably likely to be inconsistent with any
representation made in the Representation Letters or the Tax Opinions/Rulings) which in the aggregate (and taking into account any other transactions described in this subparagraph (d)) would be reasonably likely to have the effect of causing or
permitting one or more persons (whether or not acting in concert) to acquire directly or indirectly stock representing a Fifty-Percent or Greater Interest in Zoetis or otherwise jeopardize the Tax-Free Status, unless prior to taking any such
action set forth in the foregoing clauses (i) through (vi), (A) Zoetis shall have requested that Pfizer obtain a Ruling in accordance with Section 6.04(b) and (d) of this Agreement to the effect that such
transaction will not affect the Tax-Free Status and Pfizer shall have received such a Ruling in form and substance satisfactory to Pfizer in its sole and absolute discretion, or (B) Zoetis shall provide Pfizer with an Unqualified Tax Opinion in
form and substance satisfactory to Pfizer in its sole and absolute discretion (and in determining whether an 

  
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opinion is satisfactory, Pfizer may consider, among other factors, the appropriateness of any underlying assumptions and management’s representations if used as a basis for the opinion and
Pfizer may determine that no opinion would be acceptable to Pfizer) or (C) Pfizer shall have waived the requirement to obtain such Ruling or Unqualified Tax Opinion. 
 (d) Certain Issuances of Zoetis Capital Stock. If Zoetis proposes to enter into any Section 6.01(d) Acquisition Transaction or, to the extent Zoetis has the right to prohibit any
Section 6.01(d) Acquisition Transaction, proposes to permit any Section 6.01(d) Acquisition Transaction to occur, in each case, during the period from the date hereof until the first Business Day after the two-year anniversary of the final
Distribution Date, Zoetis shall provide Pfizer, no later than ten Business Days following the signing of any written agreement with respect to the Section 6.01(d) Acquisition Transaction, with a written description of such transaction
(including the type and amount of Zoetis Capital Stock to be issued in such transaction) and a certificate of the Board of Directors of Zoetis to the effect that the Section 6.01(d) Acquisition Transaction is not a Proposed Acquisition
Transaction or any other transaction to which the requirements of Section 6.01(c) apply (a “Board Certificate”). 
 (e) Zoetis Internal Restructuring. Zoetis shall not engage in, cause or permit any internal restructuring (including by making or revoking any election under Treasury Regulation
Section 301.7701-3) involving a member of the Zoetis Group or any contribution, sale or other transfer of any of the assets directly or indirectly contributed to Zoetis as described in the Separation Agreement, to Zoetis or any of its
Affiliates, apart from sales in the ordinary course of business (any such action, an “Internal Restructuring”) during or with respect to any Tax Period (or portion thereof) ending on or prior to the final Distribution Date without
obtaining the prior written consent of Pfizer. Zoetis shall provide written notice to Pfizer describing any Internal Restructuring proposed to be taken during or with respect to any Tax Period (or portion thereof) beginning after the final
Distribution Date and ending on or prior to the two-year anniversary of such Distribution Date, and shall consult with Pfizer regarding any such proposed actions reasonably in advance of taking any such proposed actions and shall consider in good
faith any comments from Pfizer relating thereto. 
 (f) Zoetis Securities. Zoetis shall not, directly or indirectly,
(i) pre-pay, pay down, redeem, retire or otherwise acquire, however effected including pursuant to the terms thereof, any of the Zoetis Securities prior to their stated maturity or permit any member of the Zoetis Group to take any such action),
or (ii) take or permit to be taken any action at any time, including, without limitation, any modification to the terms of the Zoetis Securities that could jeopardize, directly or indirectly, the qualification, in whole or part, of any of the
Zoetis Securities as “securities” within the meaning of Section 361(a) of the Code (or permit any member of the Zoetis Group to take or permit to be taken any such action), unless prior to taking any such action set forth in
the foregoing clauses (i) or (ii), (A) Zoetis shall have requested that Pfizer obtain a Ruling in accordance with Section 6.04(b) and (d) of this Agreement to the effect that such transaction will not affect
the Tax-Free Status and Pfizer shall have received such a Ruling in form and substance satisfactory to Pfizer in its sole and absolute discretion, (B) Zoetis shall provide Pfizer with an Unqualified Tax Opinion in form and substance
satisfactory to Pfizer in its sole and absolute discretion (and in determining whether an opinion is satisfactory, Pfizer may consider, among other factors, the appropriateness of any underlying assumptions and management’s representations if
used as a basis for the opinion and Pfizer may determine that no opinion would be acceptable to Pfizer) or (C) Pfizer shall have waived the requirement to obtain such Ruling or Unqualified Tax Opinion. Notwithstanding the foregoing, and subject
to and without limiting or modifying Zoetis’ indemnification obligations under Section 6.04, Zoetis or a Zoetis Affiliate may take, cause to be taken, or permit to be taken an action described in this Section 6.01(f) if failure to
take such action would violate the terms of the Zoetis Securities or any of the documents entered into in connection therewith (a “Required Action”). 

  
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 (g) Gain Recognition Agreements. Zoetis shall not (i) take any action
(including, but not limited to, the sale or disposition of any stock, securities, or other assets), (ii) permit any member of the Zoetis Group to take any such action, (iii) fail to take any action, or (iv) permit any member of the
Zoetis Group to fail to take any action, in each case that would cause Pfizer or any member of the Pfizer Group to recognize gain under any Gain Recognition Agreement. In addition, Zoetis shall file, and shall cause any member of the Zoetis Group to
file, any Gain Recognition Agreement reasonably requested by Pfizer which Gain Recognition Agreement is determined by Pfizer to be necessary so as to (i) allow for or preserve the tax-free or tax-deferred nature, in whole or part, of any
Separation Transaction, or (ii) avoid Pfizer or any member of the Pfizer Group recognizing gain under any Gain Recognition Agreement. 
 Section 6.02 Restrictions on Pfizer. Pfizer agrees that it will not take or fail to take, or permit any Pfizer Affiliate, as the case may be, to take or fail to take, any action (i) where
such action or failure to act would be inconsistent with or cause to be untrue any statement, information, covenant or representation in any Representation Letters or Tax Opinions/Rulings, or (ii) which adversely affects or could reasonably be
expected to adversely affect (A) the Tax-Free Status of the Contribution, the Debt-for-Debt Exchange, the Debt-for-Equity Exchange and the Distribution, or (B) the qualification of any Separation Transaction under U.S. federal, state,
local or non-U.S. Tax Law as tax free (including, but not limited to, those transactions described in any of the Tax Opinions/Rulings received with respect to such Separation Transaction) from so qualifying; provided, however, that this
Section 6.02 shall not be construed as obligating Pfizer to consummate the Distribution nor shall it be construed as preventing Pfizer from terminating the Separation Agreement pursuant to Section 10.1 thereof. 

Section 6.03 Procedures Regarding Opinions and Rulings. 

(a) If Zoetis notifies Pfizer that it desires to take one of the actions described in clause (i) or (ii) of
Section 6.01(c) or clauses (i) through (iv) or Section 6.01(f) (a “Notified Action”), Pfizer and Zoetis shall reasonably cooperate to attempt to obtain the Ruling or Unqualified Tax Opinion referred
to in Section 6.01(c) or (f), unless Pfizer shall have waived the requirement to obtain such Ruling or Unqualified Tax Opinion. 
 (b) Rulings or Unqualified Tax Opinions at Zoetis’s Request. Pfizer agrees that at the reasonable request of Zoetis pursuant to Section 6.01(c) or (f), Pfizer shall
cooperate with Zoetis and use its reasonable best efforts to seek to obtain, as expeditiously as possible, a Ruling from the IRS or an Unqualified Tax Opinion for the purpose of permitting Zoetis to take the Notified Action. Further, in no event
shall Pfizer be required to file any Ruling Request under this Section 6.03(b) unless Zoetis represents that (A) it has read the Ruling Request, and (B) all information and representations, if any, relating to any member of the
Zoetis Group, contained in the Ruling Request documents are (subject to any qualifications therein) true, correct and complete. Zoetis shall reimburse Pfizer for all reasonable costs and expenses, including expenses relating to the utilization of
Pfizer personnel, incurred by the Pfizer Group in obtaining a Ruling or Unqualified Tax Opinion requested by Zoetis within ten Business Days after receiving an invoice from Pfizer therefor. 

  
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 (c) Rulings or Unqualified Tax Opinions at Pfizer’s Request. Pfizer shall have
the right to obtain a Ruling or an Unqualified Tax Opinion at any time in its sole and absolute discretion. If Pfizer determines to obtain a Ruling or an Unqualified Tax Opinion, Zoetis shall (and shall cause each Affiliate of Zoetis to) cooperate
with Pfizer and take any and all actions reasonably requested by Pfizer in connection with obtaining the Ruling or Unqualified Tax Opinion (including, without limitation, by making any representation or covenant or providing any materials or
information requested by the IRS or Tax Advisor; provided that Zoetis shall not be required to make (or cause any Affiliate of Zoetis to make) any representation or covenant that is inconsistent with historical facts or as to future matters or
events over which it has no control). Pfizer shall reimburse Zoetis for all reasonable costs and expenses, including expenses relating to the utilization of Zoetis personnel, incurred by the Zoetis Group in connection with such cooperation within
ten Business Days after receiving an invoice from Zoetis therefor. 
 (d) Zoetis hereby agrees that Pfizer shall have
sole and exclusive control over the process of obtaining any Ruling, and that only Pfizer shall apply for a Ruling. In connection with obtaining a Ruling pursuant to Section 6.03(b), (A) Pfizer shall keep Zoetis informed in a timely
manner of all material actions taken or proposed to be taken by Pfizer in connection therewith; (B) Pfizer shall (1) reasonably in advance of the submission of any Ruling Request documents provide Zoetis with a draft copy thereof,
(2) reasonably consider Zoetis’s comments on such draft copy, and (3) provide Zoetis with a final copy; and (C) Pfizer shall provide Zoetis with notice reasonably in advance of, and Zoetis shall have the right to attend, any
formally scheduled meetings with the IRS (subject to the approval of the IRS) that relate to such Ruling. Neither Zoetis nor any Zoetis Affiliate directly or indirectly controlled by Zoetis shall seek any guidance from the IRS or any other Tax
Authority (whether written, verbal or otherwise) at any time concerning the Contribution, the Debt-for-Debt Exchange, the Debt-for-Equity Exchange or the Distribution (including the impact of any transaction on the Contribution, the Debt-for-Debt
Exchange, the Debt-for-Equity Exchange or the Distribution). 
 Section 6.04 Liability for Tax-Related Losses.

 (a) Notwithstanding anything in this Agreement or the Separation Agreement to the contrary (and in each case
regardless of whether a Ruling, Unqualified Tax Opinion or waiver described in clause (A), (B) or (C) of Section 6.01(c) or a Ruling, Unqualified Tax Opinion or waiver described in clause (A), (B) or (C) of
Section 6.01(f) may have been provided, and regardless of whether an action may be a Required Action), subject to Section 6.04(c), Zoetis shall be responsible for, and shall indemnify and hold harmless Pfizer and its
Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of any Tax-Related Losses that are attributable to or result from any one or more of the following: (A) the acquisition
(other than pursuant to the Contribution, the Debt-for-Equity Exchange, the IPO, or the Distribution) of all or a portion of Zoetis’s stock and/or its or its subsidiaries’ assets by any means whatsoever by any Person, (B) any
negotiations, understandings, agreements or arrangements by Zoetis with respect to transactions or events (including, without limitation, stock issuances, pursuant to the exercise of stock options or otherwise, option grants, capital contributions
or acquisitions, or a series of such transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly stock of Zoetis representing a Fifty-Percent or Greater
Interest therein, (C) any action or failure to act by Zoetis after the Distribution (including, without limitation, any amendment to Zoetis’s certificate of incorporation (or other 

  
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organizational documents), whether through a stockholder vote or otherwise) affecting the voting rights of Zoetis stock (including, without limitation, through the conversion of one class of
Zoetis Capital Stock into another class of Zoetis Capital Stock), (D) any act or failure to act by Zoetis or any Zoetis Affiliate described in Section 6.01 (regardless whether such act or failure to act may be a Required Action or
may be covered by a Ruling, Unqualified Tax Opinion or waiver described in clause (A), (B) or (C) of Section 6.01(c), a Board Certificate described in Section 6.01(d), a consent described in
Section 6.01(e), or a Ruling, Unqualified Tax Opinion or waiver described in clause (A), (B) or (C) of Section 6.01(f)) or (E) any breach by Zoetis of its agreement and representation set forth in
Section 6.01(a). 
 (b) Notwithstanding anything in this Agreement or the Separation Agreement to the
contrary, subject to Section 6.04(c), Pfizer shall be responsible for, and shall indemnify and hold harmless Zoetis and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent
(100%) of any Tax-Related Losses that are attributable to, or result from any one or more of the following: (A) the acquisition (other than pursuant to the Contribution, the Debt-for-Equity Exchange, the IPO, or the Distribution) of all or
a portion of Pfizer’s stock and/or its assets by any means whatsoever by any Person, (B) any negotiations, agreements or arrangements by Pfizer with respect to transactions or events (including, without limitation, stock issuances,
pursuant to the exercise of stock options or otherwise, option grants, capital contributions or acquisitions, or a series of such transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or more
Persons acquire directly or indirectly stock of Pfizer representing a Fifty-Percent or Greater Interest therein, (C) any act or failure to act by Pfizer or a member of the Pfizer Group described in Section 6.02 or any breach by
Pfizer of its agreement and representation set forth in Section 6.02. 
 (c) 

(i) To the extent that any Tax-Related Loss is subject to indemnity under both Sections 6.04(a) and (b),
responsibility for such Tax-Related Loss shall be shared by Pfizer and Zoetis according to relative fault. 

(ii) Notwithstanding anything in Section 6.04(b) or (c)(i) or any other provision of this Agreement or
the Separation Agreement to the contrary: 
 (A) with respect to (I) any Tax-Related Loss resulting from
Section 355(e) of the Code (other than as a result of an acquisition of a Fifty-Percent or Greater Interest in Pfizer) and (II) any other Tax-Related Loss resulting (for the absence of doubt, in whole or in part) from an acquisition after the
Distribution of any stock or assets of Zoetis (or any Zoetis Affiliate) by any means whatsoever by any Person or any action or failure to act by Zoetis affecting the voting rights of Zoetis stock, Zoetis shall be responsible for, and shall indemnify
and hold harmless Pfizer and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of such Tax-Related Loss; and 

  
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 (B) for purposes of calculating the amount and timing of any Tax-Related
Loss for which Zoetis is responsible under this Section 6.04, Tax-Related Losses shall be calculated by assuming that Pfizer, the Pfizer Affiliated Group and each member of the Pfizer Group (I) pay Tax at the highest marginal
corporate Tax rates in effect in each relevant taxable year and (II) have no Tax Attributes in any relevant taxable year. 
 (iii) Notwithstanding anything in Section 6.04(a) or (c)(i) or any other provision of this Agreement or the Separation Agreement to the contrary, with respect to (I) any
Tax-Related Loss resulting from Section 355(e) of the Code (other than as a result of an acquisition of a Fifty-Percent or Greater Interest in Zoetis) and (II) any other Tax-Related Loss resulting (for the absence of doubt, in whole or in part)
from an acquisition after the Distribution of any stock or assets of Pfizer (or any Pfizer Affiliate) by any means whatsoever by any Person, Pfizer shall be responsible for, and shall indemnify and hold harmless Zoetis and its Affiliates and each of
their respective officers, directors and employees from and against, one hundred percent (100%) of such Tax-Related Loss. 

(d) Zoetis shall pay Pfizer the amount of any Tax-Related Losses for which Zoetis is responsible under this
Section 6.04: (A) in the case of Tax-Related Losses described in clause (i) of the definition of Tax-Related Losses no later than two Business Days prior to the date Pfizer files, or causes to be filed, the applicable Tax
Return for the year of the Contribution or Distribution, as applicable (the “Filing Date”) (provided that if such Tax-Related Losses arise pursuant to a Final Determination described in clause (a), (b) or (c) of the
definition of “Final Determination”, then Zoetis shall pay Pfizer no later than two Business Days after the date of such Final Determination with interest calculated at the Prime Rate plus two percent, compounded semiannually, from the
date that is two Business Days prior to the Filing Date through the date of such Final Determination) and (B) in the case of Tax-Related Losses described in clause (ii) or (iii) of the definition of Tax-Related Losses, no later than
two Business Days after the date Pfizer pays such Tax-Related Losses. Pfizer shall pay Zoetis the amount of any Tax-Related Losses (described in clause (ii) or (iii) of the definition of Tax-Related Loss) for which Pfizer is responsible
under this Section 6.04 no later than two Business Days after the date Zoetis pays such Tax-Related Losses. 

Section 7. Assistance and Cooperation. 
 Section 7.01 Assistance and Cooperation. 
 (a) The Companies
shall cooperate (and cause their respective Affiliates to cooperate) with each other and with each other’s agents, including accounting firms and legal counsel, in connection with Tax matters relating to the Companies and their Affiliates
including (i) preparation and filing of Tax Returns, (ii) determining the liability for and amount of any Specified Taxes due (including estimated Taxes) or the right to and amount of any refund of Taxes, (iii) examinations of Tax
Returns, and (iv) any administrative or judicial proceeding in respect of Specified Taxes assessed or proposed to be assessed. Such cooperation shall include making all information and documents in their possession relating to the other Company
and its Affiliates available to such other Company as provided in Section 8. Each of the Companies 

  
 24 









 
shall also make available to the other, as reasonably requested and available, personnel (including officers, directors, employees and agents of the Companies or their respective Affiliates)
responsible for preparing, maintaining, and interpreting information and documents relevant to Specified Taxes, and personnel reasonably required as witnesses or for purposes of providing information or documents in connection with any
administrative or judicial proceedings relating to Specified Taxes. In the event that a member of the Pfizer Group, on the one hand, or a member of the Zoetis Group, on the other hand, suffers a Tax detriment as a result of a Transfer Pricing
Adjustment, the Companies shall cooperate pursuant to this Section 7 to seek any competent authority relief that may be available with respect to such Transfer Pricing Adjustment. Zoetis shall cooperate with Pfizer and take any and all
actions reasonably requested by Pfizer in connection with obtaining the Tax Opinions/Rulings (including, without limitation, by making any new representation or covenant, confirming any previously made representation or covenant or providing any
materials or information requested by any Tax Advisor or Tax Authority; provided that, Zoetis shall not be required to make or confirm any representation or covenant that is inconsistent with historical facts or as to future matters or events over
which it has no control). 
 (b) Any information or documents provided under this Section 7 shall be kept
confidential by the Company receiving the information or documents, except as may otherwise be necessary in connection with the filing of Tax Returns or in connection with any administrative or judicial proceedings relating to Taxes. Notwithstanding
any other provision of this Agreement or any other agreement, (i) neither Pfizer nor any Pfizer Affiliate shall be required to provide Zoetis or any Zoetis Affiliate or any other Person access to or copies of any information or procedures
(including the proceedings of any Tax Contest) other than information or procedures that relate to Zoetis, the business or assets of Zoetis or any Zoetis Affiliate and (ii) in no event shall Pfizer or any Pfizer Affiliate be required to provide
Zoetis, any Zoetis Affiliate or any other Person access to or copies of any information if such action could reasonably be expected to result in the waiver of any Privilege. In addition, in the event that Pfizer determines that the provision of any
information to Zoetis or any Zoetis Affiliate could be commercially detrimental, violate any law or agreement or waive any Privilege, the parties shall use reasonable best efforts to permit compliance with its obligations under this
Section 7 in a manner that avoids any such harm or consequence. 
 Section 7.02 Income Tax Return
Information. Zoetis and Pfizer acknowledge that time is of the essence in relation to any request for information, assistance or cooperation made by Pfizer or Zoetis pursuant to Section 7.01 or this Section 7.02. Zoetis
and Pfizer acknowledge that failure to conform to the reasonable deadlines set by Pfizer or Zoetis could cause irreparable harm. Each Company shall provide to the other Company information and documents relating to its Group required by the other
Company to prepare Tax Returns, including, but not limited to, any pro forma returns required by the Responsible Company for purposes of preparing such Tax Returns. Any information or documents the Responsible Company requires to prepare such Tax
Returns shall be provided in such form as the Responsible Company reasonably requests and at or prior to the time reasonably specified by the Responsible Company so as to enable the Responsible Company to file such Tax Returns on a timely basis.

 Section 7.03 Reliance by Pfizer. If any member of the Zoetis Group supplies information to a member of the Pfizer
Group in connection with a Tax liability and an officer of a member of the Pfizer Group signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon the written request of such member of
the Pfizer Group identifying the information being so relied upon, the chief financial officer of Zoetis (or any officer of Zoetis as designated by the chief financial officer of Zoetis) shall certify in writing that to his or her knowledge (based
upon consultation with appropriate employees) the information so supplied is accurate and complete. 

  
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 Section 7.04 Reliance by Zoetis. If any member of the Pfizer Group supplies
information to a member of the Zoetis Group in connection with a Tax liability and an officer of a member of the Zoetis Group signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon
the written request of such member of the Zoetis Group identifying the information being so relied upon, the chief financial officer of Pfizer (or any officer of Pfizer as designated by the chief financial officer of Pfizer) shall certify in writing
that to his or her knowledge (based upon consultation with appropriate employees) the information so supplied is accurate and complete. 
 Section 8. Tax Records. 
 Section 8.01 Retention of Tax
Records. Each Company shall preserve and keep all Tax Records exclusively relating to the assets and activities of its Group for Pre-Deconsolidation Periods, and Pfizer shall preserve and keep all other Tax Records relating to Taxes of the
Groups for Pre-Deconsolidation Tax Periods, for so long as the contents thereof may become material in the administration of any matter under the Code or other applicable Tax Law, but in any event until the later of (i) the expiration of any
applicable statutes of limitations, or (ii) seven years after the Deconsolidation Date (such later date, the “Retention Date”). After the Retention Date, each Company may dispose of such Tax Records upon 60 Business Days’
prior written notice to the other Company. If, prior to the Retention Date, (a) a Company reasonably determines that any Tax Records which it would otherwise be required to preserve and keep under this Section 8 are no longer
material in the administration of any matter under the Code or other applicable Tax Law and the other Company agrees, then such first Company may dispose of such Tax Records upon 60 Business Days’ prior notice to the other Company. Any notice
of an intent to dispose given pursuant to this Section 8.01 shall include a list of the Tax Records to be disposed of describing in reasonable detail each file, book, or other record accumulation being disposed. The notified Company
shall have the opportunity, at its cost and expense, to copy or remove, within such 60 Business Day period, all or any part of such Tax Records. If, at any time prior to the Retention Date, Zoetis determines to decomission or otherwise discontinue
any computer program or information technology system used to access or store any Tax Records, then Zoetis may decomission or discontinue such program or system upon 90 days’ prior notice to Pfizer and Pfizer shall have the opportunity, at its
cost and expense, to copy, within such 60 Business Day period, all or any part of the underlying data relating to the Tax Records accessed by or stored on such program or system. 

Section 8.02 Access to Tax Records. The Companies and their respective Affiliates shall make available to each other for
inspection and copying during normal business hours upon reasonable notice all Tax Records (and, for the avoidance of doubt, any pertinent underlying data accessed or stored on any computer program or information technology system) in their
possession and shall permit the other Company and its Affiliates, authorized agents and representatives and any representative of a Taxing Authority or other Tax auditor direct access, at the cost and expense of such other Company, during normal
business hours upon reasonable notice to any computer program or information technology system used to access or store any Tax Records, in each case to the extent reasonably required by the other Company in connection with the preparation of Tax
Returns or financial accounting statements, audits, litigation, or the resolution of items under this Agreement. 

  
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 Section 8.03 Preservation of Privilege. No member of the Zoetis Group shall
provide access to, copies of, or otherwise disclose to any Person any documentation relating to Specified Taxes existing as of the date hereof to which Privilege may reasonably be asserted without the prior written consent of Pfizer, such consent
not to be unreasonably withheld. 
 Section 9. Tax Contests. 

Section 9.01 Notice. Each of the Companies shall provide prompt notice to the other Company of any written communication from
a Tax Authority regarding any pending Tax audit, assessment or proceeding or other Tax Contest of which it becomes aware related to Taxes for Tax Periods for which it is indemnified by the other Company hereunder or for which it may be required to
indemnify the other Company hereunder. Such notice shall attach copies of the pertinent portion of any written communication from a Tax Authority and contain factual information (to the extent known) describing any asserted Tax liability in
reasonable detail and shall be accompanied by copies of any notice and other documents received from any Tax Authority in respect of any such matters. If an indemnified party has knowledge of an asserted Tax liability with respect to a matter for
which it is to be indemnified hereunder and such party fails to give the indemnifying party prompt notice of such asserted Tax liability and the indemnifying party is entitled under this Agreement to contest the asserted Tax liability, then
(i) if the indemnifying party is precluded from contesting the asserted Tax liability in any forum as a result of the failure to give prompt notice, the indemnifying party shall have no obligation to indemnify the indemnified party for any
Taxes arising out of such asserted Tax liability, and (ii) if the indemnifying party is not precluded from contesting the asserted Tax liability in any forum, but such failure to give prompt notice results in a material monetary detriment to
the indemnifying party, then any amount which the indemnifying party is otherwise required to pay the indemnified party pursuant to this Agreement shall be reduced by the amount of such detriment. 

Section 9.02 Control of Tax Contests. 
 (a) Separate Returns. In the case of any Tax Contest with respect to any Separate Return, the Company having liability for the Tax pursuant to Section 2 hereof shall have exclusive
control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to Sections 9.02(c) and (d) below. 
 (b) Joint Return. In the case of any Tax Contest with respect to any Joint Return, Pfizer shall have exclusive control over the Tax Contest, including exclusive authority with respect to any
settlement of such Tax liability, subject to Sections 9.02(c) and (d) below. 
 (c) Settlement Rights.
The Controlling Party shall have the sole right to contest, litigate, compromise and settle any Tax Contest without obtaining the prior consent of the Non-Controlling Party. Unless waived by the parties in writing, in connection with any potential
adjustment in a Tax Contest as a result of which adjustment the Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment to the Controlling Party under this Agreement: (i) the Controlling Party shall
keep the Non-Controlling Party informed in a timely manner of all actions taken or proposed to be taken by the Controlling Party with respect to such potential adjustment in such Tax Contest; (ii) the Controlling Party shall


  
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timely provide the Non-Controlling Party copies of any written materials relating to such potential adjustment in such Tax Contest received from any Tax Authority; (iii) the Controlling
Party shall timely provide the Non-Controlling Party with copies of any correspondence or filings submitted to any Tax Authority or judicial authority in connection with such potential adjustment in such Tax Contest; (iv) the Controlling Party
shall consult with the Non-Controlling Party and offer the Non-Controlling Party a reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with such potential adjustment in such Tax Contest; and
(v) the Controlling Party shall defend such Tax Contest diligently and in good faith. The failure of the Controlling Party to take any action specified in the preceding sentence with respect to the Non-Controlling Party shall not relieve the
Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement except to the extent that the Non-Controlling Party was actually harmed by such failure, and in no event shall such failure
relieve the Non-Controlling Party from any other liability or obligation which it may have to the Controlling Party. In the case of any Tax Contest described in Section 9.02(a) or (b), “Controlling Party” means
the Company entitled to control the Tax Contest under such Section and “Non-Controlling Party” means the other Company. 
 (d) Tax Contest Participation. Unless waived by the parties in writing, the Controlling Party shall provide the Non-Controlling Party with written notice reasonably in advance of, and the
Non-Controlling Party shall have the right to attend, any formally scheduled meetings with Tax Authorities or hearings or proceedings before any judicial authorities in connection with any potential adjustment in a Tax Contest pursuant to which the
Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment to the Controlling Party under this Agreement. The failure of the Controlling Party to provide any notice specified in this
Section 9.02(d) to the Non-Controlling Party shall not relieve the Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement except to the extent that the Non-Controlling
Party was actually harmed by such failure, and in no event shall such failure relieve the Non-Controlling Party from any other liability or obligation which it may have to the Controlling Party. 

(e) Power of Attorney. Each member of the Zoetis Group shall execute and deliver to Pfizer (or such member of the Pfizer Group as
Pfizer shall designate) any power of attorney or other similar document reasonably requested by Pfizer (or such designee) in connection with any Tax Contest (as to which Pfizer is the Controlling Party) described in this Section 9. Each
member of the Pfizer Group shall execute and deliver to Zoetis (or such member of the Zoetis Group as Zoetis shall designate) any power of attorney or other similar document requested by Zoetis (or such designee) in connection with any Tax Contest
(as to which Zoetis is the Controlling Party) described in this Section 9. 
 Section 10. Effective
Date. This Agreement shall be effective as of the date hereof. 
 Section 11. Survival of Obligations. The
representations, warranties, covenants and agreements set forth in this Agreement shall be unconditional and absolute and shall remain in effect without limitation as to time. 

  
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 Section 12. Treatment of Payments. 

Section 12.01 Treatment of Tax Indemnity Payments. In the absence of any change in Tax treatment under the Code or except as
otherwise required by other applicable Tax Law, any Tax indemnity payments made by a Company under this Agreement shall be reported for Tax purposes by the payor and the recipient as distributions or capital contributions, as appropriate, occurring
immediately before the Deconsolidation (but only to the extent the payment does not relate to a Tax allocated to the payor in accordance with Section 1552 of the Code or the regulations thereunder or Treasury Regulation
Section 1.1502-33(d) (or under corresponding principles of other applicable Tax Laws)) or as payments of an assumed or retained liability. Except to the extent provided in Section 12.02, any Tax indemnity payment made by a Company
under this Agreement shall be increased as necessary so that after making all payments in respect to Taxes imposed on or attributable to such indemnity payment, the recipient Company receives an amount equal to the sum it would have received had no
such Taxes been imposed. 
 Section 12.02 Interest Under This Agreement. Anything herein to the contrary
notwithstanding, to the extent one Company (“Indemnitor”) makes a payment of interest to another Company (“Indemnitee”) under this Agreement with respect to the period from the date that the Indemnitee made a
payment of Tax to a Tax Authority to the date that the Indemnitor reimbursed the Indemnitee for such Tax payment, the interest payment shall be treated as interest expense to the Indemnitor (deductible to the extent provided by law) and as interest
income by the Indemnitee (includible in income to the extent provided by law). The amount of the payment shall not be adjusted to take into account any associated Tax Benefit to the Indemnitor or increase in Tax to the Indemnitee. 

Section 13. Disagreements. 
 Section 13.01 Discussion. The Companies mutually desire that friendly collaboration will continue between them. Accordingly, they will try, and they will cause their respective Group members
to try, to resolve in an amicable manner all disagreements and misunderstandings connected with their respective rights and obligations under this Agreement, including any amendments hereto. In furtherance thereof, in the event of any dispute or
disagreement (a “Dispute”) between any member of the Pfizer Group and any member of the Zoetis Group as to the interpretation of any provision of this Agreement or the performance of obligations hereunder, the Tax departments of the
Companies shall negotiate in good faith to resolve the Dispute. 
 Section 13.02 Escalation. If such good faith
negotiations do not resolve the Dispute, then the matter, upon written request of either Company, will be referred for resolution to representatives of the parties at a senior level of management of the parties pursuant to the procedures set forth
in Section 8.02(a) of the Separation Agreement. 
 Section 13.03 Referral to Tax Advisor. If the parties are
not able to resolve the Dispute through the escalation process referred to above, then the matter will be referred to a Tax Advisor acceptable to each of the Companies to act as an arbitrator in order to resolve the Dispute. In the event that the
Companies are unable to agree upon a Tax Advisor within 15 Business Days following the completion of the escalation process, the Companies shall each separately retain an independent, nationally recognized law or accounting firm (each, a
“Preliminary Tax Advisor”), which Preliminary Tax Advisors shall jointly select a Tax 

  
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Advisor on behalf of the Companies to act as an arbitrator in order to resolve the Dispute. The Tax Advisor may, in its discretion, obtain the services of any third-party appraiser, accounting
firm or consultant that the Tax Advisor deems necessary to assist it in resolving such disagreement. The Tax Advisor shall furnish written notice to the Companies of its resolution of any such Dispute as soon as practical, but in any event no later
than 30 Business Days after its acceptance of the matter for resolution. Any such resolution by the Tax Advisor will be conclusive and binding on the Companies. Following receipt of the Tax Advisor’s written notice to the Companies of its
resolution of the Dispute, the Companies shall each take or cause to be taken any action necessary to implement such resolution of the Tax Advisor. Each Company shall pay its own fees and expenses (including the fees and expenses of its
representatives) incurred in connection with the referral of the matter to the Tax Advisor (and the Preliminary Tax Advisors, if any). All fees and expenses of the Tax Advisor (and the Preliminary Tax Advisors, if any) in connection with such
referral shall be shared equally by the Companies. 
 Section 13.04 Injunctive Relief. Nothing in this
Section 13 will prevent either Company from seeking injunctive relief if any delay resulting from the efforts to resolve the Dispute through the process set forth above could result in serious and irreparable injury to either Company.
Notwithstanding anything to the contrary in this Agreement, Pfizer and Zoetis are the only members of their respective Group entitled to commence a dispute resolution procedure under this Agreement, and each of Pfizer and Zoetis will cause its
respective Group members not to commence any dispute resolution procedure other than through such party as provided in this Section 13. 
 Section 14. Late Payments. Any amount owed by one party to another party under this Agreement which is not paid when due shall bear interest at the Prime Rate plus two percent, compounded
semiannually, from the due date of the payment to the date paid. To the extent interest required to be paid under this Section 14 duplicates interest required to be paid under any other provision of this Agreement, interest shall be
computed at the higher of the interest rate provided under this Section 14 or the interest rate provided under such other provision. 
 Section 15. Expenses. Except as otherwise provided in this Agreement, each party and its Affiliates shall bear their own expenses incurred in connection with preparation of Tax Returns, Tax
Contests, and other matters related to Taxes under the provisions of this Agreement. 
 Section 16. General
Provisions. 
 Section 16.01 Addresses and Notices. Each party giving any notice required or permitted
under this Agreement will give the notice in writing and use one of the following methods of delivery to the party to be notified, at the address set forth below or another address of which the sending party has been notified in accordance with this
Section 16.01: (a) personal delivery; (b) facsimile or telecopy transmission with a reasonable method of confirming transmission; (c) commercial overnight courier with a reasonable method of confirming delivery; or
(d) pre-paid, United States of America certified or registered mail, return receipt requested. Notice to a party is effective for purposes of this Agreement only if given as provided in this Section 16.01 and shall be deemed given
on the date that the intended addressee actually receives the notice. 

  
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 If to Pfizer: 

Pfizer Inc. 
 235 East 42nd Street 
 New York, NY 10017 

Attention:
[                    ] 
 with a copy to: 

[                    
        ] 
 If to the Company to: 

Zoetis Inc. 
 [                            ] 

[with a copy to: 
 [                            ]] 

A party may change the address for receiving notices under this Agreement by providing written notice of the change of address to the other parties.

 Section 16.02 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their successors and assigns. 
 Section 16.03 Waiver. The parties may waive a provision of this Agreement only
by a writing signed by the party intended to be bound by the waiver. A party is not prevented from enforcing any right, remedy or condition in the party’s favor because of any failure or delay in exercising any right or remedy or in requiring
satisfaction of any condition, except to the extent that the party specifically waives the same in writing. A written waiver given for one matter or occasion is effective only in that instance and only for the purpose stated. A waiver once given is
not to be construed as a waiver for any other matter or occasion. Any enumeration of a party’s rights and remedies in this Agreement is not intended to be exclusive, and a party’s rights and remedies are intended to be cumulative to the
extent permitted by law and include any rights and remedies authorized in law or in equity. 
 Section 16.04
Severability. If any provision of this Agreement is determined to be invalid, illegal or unenforceable, the remaining provisions of this Agreement remain in full force, if the essential terms and conditions of this Agreement for each party
remain valid, binding and enforceable. 
 Section 16.05 Authority. Each of the parties represents to the other that
(a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate or other
action, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it 

  
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in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity
principles. 
 Section 16.06 Further Action. The parties shall execute and deliver all documents, provide all
information, and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement, including the execution and delivery to the other parties and their Affiliates and representatives of such powers of
attorney or other authorizing documentation as is reasonably necessary or appropriate in connection with Tax Contests (or portions thereof) under the control of such other parties in accordance with Section 9. 

Section 16.07 Integration. This Agreement, together with each of the exhibits and schedules appended hereto, contains the
entire agreement between the Companies with respect to the subject matter hereof and supersedes all other agreements, whether or not written, in respect of any Specified Tax between or among any member or members of the Pfizer Group, on the one
hand, and any member or members of the Zoetis Group, on the other hand. All such other agreements, including, but not limited to, that certain Tax Sharing Agreement by and among Pfizer and certain of its subsidiaries, dated December 31, 2003,
shall be of no further effect between the Companies and any rights or obligations existing thereunder shall be fully and finally settled, calculated as of the date hereof. In the event of any inconsistency between this Agreement and the Separation
Agreement or any of the Local Separation Agreements, or any other agreements relating to the transactions contemplated by the Separation Agreement, with respect to the subject matter hereof, the provisions of this Agreement shall control.

 Section 16.08 Construction. The language in all parts of this Agreement shall in all cases be construed according
to its fair meaning and shall not be strictly construed for or against any party. The captions, titles and headings included in this Agreement are for convenience only, and do not affect this Agreement’s construction or interpretation. Unless
otherwise indicated, all “Section” references in this Agreement are to sections of this Agreement. 

Section 16.09 No Double Recovery. No provision of this Agreement shall be construed to provide an indemnity or other recovery
for any costs, damages, or other amounts for which the damaged party has been fully compensated under any other provision of this Agreement or under any other agreement or action at law or equity. Unless expressly required in this Agreement, a party
shall not be required to exhaust all remedies available under other agreements or at law or equity before recovering under the remedies provided in this Agreement. 
 Section 16.10 Counterparts. The parties may execute this Agreement in multiple counterparts, each of which constitutes an original as against the party that signed it, and all of which
together constitute one agreement. This Agreement is effective upon delivery of one executed counterpart from each party to the other party. The signatures of the parties need not appear on the same counterpart. The delivery of signed counterparts
by facsimile or email transmission that includes a copy of the sending party’s signature is as effective as signing and delivering the counterpart in person. 

  
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 Section 16.11 Governing Law. The internal laws of the State of New York (without
reference to its principles of conflicts of law) govern the construction, interpretation and other matters arising out of or in connection with this Agreement and each of the exhibits and schedules hereto and thereto (whether arising in contract,
tort, equity or otherwise). 
 Section 16.12 Jurisdiction. If any dispute arises out of or in connection with this
Agreement, except as expressly contemplated by another provision of this Agreement, the parties irrevocably (and the parties will cause each other member of their respective Group to irrevocably) (a) consent and submit to the exclusive
jurisdiction of federal and state courts located in Delaware, (b) waive any objection to that choice of forum based on venue or to the effect that the forum is not convenient, and (c) WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT
TO TRIAL OR ADJUDICATION BY JURY. 
 Section 16.13 Amendment. The parties may amend this Agreement only by a written
agreement signed by each party to be bound by the amendment and that identifies itself as an amendment to this Agreement. 

Section 16.14 Zoetis Subsidiaries. If, at any time, Zoetis acquires or creates one or more subsidiaries that are includable
in the Zoetis Group, they shall be subject to this Agreement and all references to the Zoetis Group herein shall thereafter include a reference to such subsidiaries. 
 Section 16.15 Successors. This Agreement shall be binding on and inure to the benefit of any successor by merger, acquisition of assets, or otherwise, to any of the parties hereto (including
but not limited to any successor of Pfizer or Zoetis succeeding to the Tax attributes of either under Section 381 of the Code), to the same extent as if such successor had been an original party to this Agreement. 

Section 16.16 Injunctions. The parties acknowledge that irreparable damage would occur in the event that any of the
provisions of this Agreement, including Section 6.01, were not performed in accordance with its specific terms or were otherwise breached. The parties hereto shall be entitled to an injunction or injunctions to prevent breaches of the
provisions of this Agreement, including Section 6.01, and to enforce specifically the terms and provisions hereof in any court having jurisdiction, such remedy being in addition to any other remedy to which they may be entitled at law or
in equity. 

  
 33 









 IN WITNESS WHEREOF, each party has caused this Agreement to be executed on its behalf by a
duly authorized officer on the date first set forth above. 
  

			
	PFIZER INC., a Delaware corporation
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	ZOETIS INC., a Delaware corporation
		
	By:	 	  

	Name:	 	
	Title:	 	


 [Signature Page to Tax Matters Agreement]